MAY 2013 Volume 5 • Number 5
FROM THE 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 David J. Coster Senior Editor davidc@nmpmediacorp.com Robert Peter Ottone Assistant Editor (516) 409-5555, ext. 314 robertpo@nmpmediacorp.com Joey Arendt Art Director joeya@nmpmediacorp.com Jon Blake Advertising Coordinator (516) 409-5555, ext. 301 jonb@nmpmediacorp.com
MAY 2013 n Iowa Mortgage Professional Magazine n
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Beverly Koondel National Account Executive (516) 409-5555, ext. 316 beverlyk@nmpmediacorp.com
ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact National Account Executive Beverly Koondel at (516) 409-5555, ext. 316 or e-mail beverlyk@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 email ericp@nmpmediacorp.com. The deadline for submissions is the first of the month prior to the target issue. SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@nmpmediacorp.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National 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.
National Mortgage Professional Magazine is published monthly by NMP Media Corp. Copyright © 2013 NMP Media Corp.
publisher’s desk
The Catch 22 of compliance I recently attended the Mortgage Bankers Association’s Secondary Marketing Conference in New York City and was troubled by an old buzzword. “Compliance” is not new, it’s been around for as long as people have been closing loans and putting people into homes. The advent of the Dodd-Frank Act has put compliance again to the forefront, and the chatter amongst the small businessmen and mortgage professionals in attendance at the MBA’s Secondary Conference left me confused. The birth of Dodd-Frank has caused a boom in the compliance market, as new layers upon layers of legalities and regulations have been put in place to achieve the American dream of homeownership. Sure, compliance is a good thing. It has effectively washed away many of those who swooped into the industry, illegally made a quick buck and either ran for the hills or wound up behind bars. In addition to the layers of regulations previously mentioned, mortgage professionals now needed compliance professionals on call at all times in order to keep pace with new rules and regulations as they were passed. End result … another added cost to the overhead of today’s mortgage professional. And what of those who are lacking in information … those who are not really following the ebbs and flows of the regulation arena closely? They too pay a price, but their cost is generally in the form of huge monetary fines or even jail time. Bottom line … there is a cost of the double-edged sword that is compliance. Jonathan Foxx, on page 10, prepares us for the impending Consumer Financial Protection Bureau (CFPB) fines and penalties against non-banks.
Motivation and training This month, we focus on motivation and training. Kicking things off this month for us is Greg Frost Sr., known as the industry’s first billion dollar originator, with his story on page 50 about hiring a sales trainer. Dave Hershman picks up where Greg leaves off on page 51 and discusses the ways in which to properly prepare your training and sales personnel to get out and makes some deals. David Lykken follows on page 52 and gets into the motivation end of business in his piece on how confident leaders setting the tone to restore confidence in today’s homebuying public. National Training Director Ginger Bell of Plaza Home Mortgage takes training a step further on page 54 with her article. She provides you with the foundation to take your industry experience and utilize it by getting out into the field and becoming an industry trainer by creating industry-specific courses. Kelly Resendez of Paramount Equity breaks down the barriers to achieving personal success with her article on page 57, focusing on goal-setting and laying the foundation to your future successes. The duo of Judy Wheatley and John C. Cunningham of Indecomm Global Services dissect the three elements of successful learning on page 59, when they delve deeper into pre-learning, learning and post-learning. And wrapping up our special section on page 61, Ralph LoVuolo of consulting firm Mortgage Motivator shares some real-life experiences in his piece on building the ideal LO for today’s marketplace.
Back to our leaders In my travels at the MBA Secondary Conference, I encountered many who foresee a downshift in the market. As the refi market subsides, a new purchase market strategy must compensate for that lost refi business, and many of the mortgage professionals I met with are grabbing the bull by the horns. To avoid from the mistakes of the past, many are prepping their infrastructure and shifting their focus to the purchase market. These individuals are to be applauded for not viewing an impending down market as a roadblock, but a simple bump in the road on their path to success. They have set methods in place to deal with these issues such as a dried up refi market in a positive way, and not treating it like it’s the end of the world. To that end, National Mortgage Professional Magazine was able to host a roundtable discussion and brainstorming session with 10 of the industry’s movers and shakers. Our 2013 Mortgage Mastermind panel discussion, beginning on page 36, lends their ideas and thoughts on how to keep pace with an ever-shifting market and how to properly navigate through these waters to maintain success. From company growth, to everyday business practices, our panelists tackle the issues in roundtable fashion and share what has made hem successful and also discuss the pitfalls to avoid along the way. All of this and much more lies ahead in this issue of National Mortgage Professional Magazine. As the summer months set in, take this opportunity to stay sharp and remain ahead of the curve. While your competition is kicking their feet up and sunning in the sand, gain that competitive edge and claim your share of this changing market and stay sharp. With rapid-fire regulations changing daily, there is no time for relaxing, only time for vigilance as the hold of compliance grows stronger. Don’t be the one to pay the ultimate price of compliance … stay ahead and keep ahead of the curve to avoid long-term troubles by tending to short-term problems. Sincerely,
Joel M. Berman, Publisher-CEO NMP Media Corp. joel@nmpmediacorp.com