n Kansas Mortgage Professional Magazine n MAY 2013
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n Kansas Mortgage Professional Magazine n MAY 2013
10 Waiting for the CPFB By Jonathan Foxx
M A Y
24 Lesson Learned: The Great Recession Ends, but Young Professionals Remain Elusive! By Chad Jampedro
table o N A T I O N A L
2 0 1 3
M O R T
V O L U
A SPECIAL LOOK AT “MOTIVATION AND TRAINING FOR SUCCESS” The Benefit of a Hired Sales Trainer By Greg Frost Sr. ......50 Training and Coaching Sales Personnel
By Dave Hershman ......................................................................51
Leadership and Restoring Confidence in the Community By David Lykken ........................................52 Unleashing the Trainer in You: 10 Easy Steps to Creating a Course By Ginger Bell ..................................54
Welcome to the Show!
32 Wecome to the Show! Industry Newcomers Learning From the Past to Create a Positive Lending Future By Tara R. Nygaard
Stop Getting in the Way of YOU—Build Systems for Success and Prevent Self-Sabotaging Behaviors By Kelly Resendez ....................57 Learning Event Strategies to Enhance Motivation By Judy Wheatley & John C. Cunningham ..................................59 You Can Let Your Teeth Rot or Recruit New Loan Officers … Your Choice By Ralph LoVuolo ................61
FEATURES When to Stop Thinking By Jake Soley......................................8 The Elite Performer: Set Your Goals! By Andy W. Harris, CRMS ........................................................8
33 Regulatory Compliance Review: FHA Mortgage Review Board ... Administrative Actions By Jonathan Foxx
36 Growth and Expansion in Today’s Mortgage Marketplace
Two Reverse Mortgage Misconceptions By Ralph E. Rosynek Jr. ........................................................16 Escrow Requirements Final Rule— Amended Already? By Laurie Spira ....................................18 NAMB Perspective ........................................................20
V I S I T Company
O U R
AllRegs.............................................................. www.allregs.com ..........................................................34 American Financial Resources Inc. ...................... www.afrwholesale.com ............................Inside Back Cover Appraisal Nation, LLC ........................................ www.appraisal-nation.com ............................................57 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................21 Calyx Software .................................................. www.calyxsoftware.com ................................................43 CBC National Bank ............................................ www.cbconnex.com ......................................................34 Cendix .............................................................. www.zairmail.com/mortgage_marketing ........................51 Credit Plus, Inc. ................................................ www.creditplus.com/undisclosed-debt-monitoring ............23 Data Facts ........................................................ www.datafacts.com ........................................................60 Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................9 FAMP ................................................................ www.myfamp.org ..........................................................47 indMortgageJobs.com ........................................ www.findmortgagejobs.com ..................................46 & 66 First Guaranty Mortgage Corp. ............................ www.fgmcwholesale.com ................................................7 GSF Mortgage Corp. ............................................ www.gsfsales.com ..........................................................19 Hometown Lenders ............................................ www.whotookmybacon.com ..................................13 & 35 HomeBridge ...................................................... www.homebridgewholesale.com ....................................41 Maverick Funding Corp....................................... www.maverickwholesale.com ........................................27 Maximum Acceleration Coaching ........................ www.maccelcoach.com ..................................................25 Menlo Park Funding .......................................... www.mpfunding.com ....................................................61
T G A G E
P R O F E S S I O N A L
N U M B E R
Create Preeminence in Wholesale Lending By Sharon Bitz ....................................................................22 Secrets to More Closings: Stages Three to Five of the Sales Funnel (Part II) By Jean LeBlanc ........30 Bonded With NAMB: C’mon … Step Right Up and Play the Shell Game By Mason Grashot, CPA ................40 FHA Insider: FHA Lays Down the Hammer on Multiple Lenders … Find Out Why By Jeff Mifsud ..........44 The Five Critical Factors to Develop Call Confidence By Jeff Krantz ..........................................48 Using Engagement-Based Professional Services to Meet Your Business Needs By Dan Thoms ..................49 Increase Your Monthly Funding Volume With These Simple Steps By Joshua Conklin ......................62 2013 … So Far So Good for the USDA Single-Family Loan Program By Rich Obermeier ................63 NAMB Sales & Marketing Tips for Today’s Mortgage Professional: Sharpening Your Skills … A Daily Practice By Fred Arnold, CMC ............64 Have You Seen a Dip in Your Marketing Results? ........65 The Keys to Leadership: An Unlikely Source By Kevin E. O’Connor, CSP ....................................................66
NMP News Flash: May 2013 ..........................................12 New to Market................................................................14 Heard on the Street ......................................................62
soar Through our Integrated Marketing Campaigns, we offer our advertisers ads in the monthly edition of National Mortgage Professional Magazine and our 38 state-specific electronic editions. We also offer promotion throughout various forms of electronic media, including e-mail blasts, social networking outlets, banner ads and the ability to interact with our readership through jointly-hosted Webinars. To find out how National Mortgage Professional Magazine can empower your brand, contact us today.
NMP Mortgage Professional Resource Registry ..........68 NMP Calendar of Events ................................................72
Mortgage Mapp, Inc. .......................................... www.mortgagemapp.com/MO ........................................29 NAPMW ............................................................ www.napmw.org ..........................................................42 New Penn Financial, LLC .................................... www.gonewpenn.com ....................................................53 PB Financial Group Corp..................................... www.pbfinancialgrp.com ..............................................47 Quality Mortgage Services .................................. www.qcmortgage.com ....................................................58 REMN (Real Estate Mortgage Network) ................ www.remnwholesale.com ................................................5 Reverse Mortgage Solutions .............................. www.RMPath.com ........................................................45 Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................56 Rushmore Loan Management Services LLC............ www.rushmorehl.com ....................................................17 Salomon James Capital Group, ULP...................... www.salomonjamesfinance.com ....................................11 Simple Nexus .................................................... www.simplenexus.com ..................................................59 Streetlinks LLC .................................................. www.streetlinks.com ..............................Inside Front Cover TagQuest .......................................................... www.tagquest.com ........................................................39 The Bond Exchange............................................ www.thebondexchange.com ..........................................50 Titan List & Mailing Services, Inc. ........................ www.titanlists.com ..........................................................1 Ultimate Mortgage Expo .................................... www.ultimatemortgageexpo.com ....................................15 United Wholesale Mortgage ................................ www.uwm.com ................................................Back Cover Vanguard Funding LLC........................................ www.unleashvpower.com ..............................................31 WCS Lending...................................................... www.wcswholesale.com ................................................38
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n Kansas Mortgage Professional Magazine n MAY 2013
D V E R T I S E R S
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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 email@example.com Joel M. Berman Publisher - CEO (516) 409-5555, ext. 310 firstname.lastname@example.org David J. Coster Senior Editor email@example.com Robert Peter Ottone Assistant Editor (516) 409-5555, ext. 314 firstname.lastname@example.org Joey Arendt Art Director email@example.com Jon Blake Advertising Coordinator (516) 409-5555, ext. 301 firstname.lastname@example.org
MAY 2013 n Kansas Mortgage Professional Magazine n
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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 firstname.lastname@example.org. 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 email@example.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 firstname.lastname@example.org 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.
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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. email@example.com
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n Kansas Mortgage Professional Magazine n MAY 2013
Real Estate Mortgage Network Inc, 499 Thornall Street 2nd Floor, Edison, NJ 08837. NMLS# 6521
NAMB—The Association of Mortgage Professionals
National Association of Professional Mortgage Women
2701 West 15th Street, Suite 536 l Plano, TX 75075 Phone: (703) 342-5900 l Fax: (530) 484-2906 Web site: www.namb.org
P.O. Box 451718 l Garland, TX 75042 Phone: (800) 827-3034 l Fax: (469) 524-5121 Web site: www.napmw.org
NAMB 2012-2013 Board of Directors
National Board of Directors 2012-2013
OFFICERS Donald J. Frommeyer, CRMS—President Amtrust Mortgage Funding Inc. 200 Medical Drive, Suite D l Carmel, IN 46032 (317) 575-4355 l firstname.lastname@example.org John Councilman, CMC, CRMS—Vice President AMC Mortgage Corporation 11920 Fairway Lakes Drive, Suite 2 l Fort Myers, FL 33913 (239) 267-2400 l email@example.com Fred Arnold, CMC—Treasurer American Family Funding 24961 The Old Road, Suite #101 l Stevenson Ranch, CA 91381 (661) 284-1150 l firstname.lastname@example.org Kay A. Cleland, CMC, CRMS—Secretary KC Mortgage LLC 200 South Wilcox Street #224 l Castle Rock, CO 80104 (720) 810-4917 l email@example.com Jim Pair, CMC—Immediate Past President Mortgage America Corpus Christi Inc. 22800 Bulverde Road, Apt. 1402 l San Antonio, TX 78261 (361) 774-7314 l E-mail: firstname.lastname@example.org
MAY 2013 n Kansas Mortgage Professional Magazine n
Rocke Andrews, CMC, CRMS—Director Lending Arizona LLC 1996 North Kolb l Tucson, AZ 85715 (520) 886-7283 l email@example.com Rick Bettencourt—Director Mortgage Network 300 Rosewood Drive l Danvers, MA 01923 (978) 777-7500 l firstname.lastname@example.org Donald E. Fader, CRMS—Director SMC Home Finance PO Box 1376 l Kinston, NC 28503-1376 (252) 523-5800 l email@example.com Andy W. Harris, CRMS—Director Vantage Mortgage Group Inc 15962 SW Boones Ferry Road, Ste. 100 l Lake Oswego, OR 97035 (503) 496-0431, ext. 302 l firstname.lastname@example.org Olga Kucerak, CRMS—Director Crown Lending 328 West Mistletoe l San Antonio, TX 78212 (210) 828-3384 l email@example.com Linda McCoy—Director Mortgage Team 1 Inc. 6336 Piccadilly Square Drive l Mobile, AL 36609 (251) 650-0805 l firstname.lastname@example.org Dick Morin—Director Consumers First Mortgage P.O. Box 918 l Kennebunk, ME 04043 207-985-2895 l email@example.com Valerie Saunders—Director RE Financial Services 13033 West Lindburgh Avenue l Tampa, FL 33626 (866) 992-0785 l firstname.lastname@example.org John Stevens—Director Bank of England d/b/a ENG Lending 11650 South State Street, Ste. 350 l Draper UT 84020 (801) 427-7111 l email@example.com
President Candace M. Smith, CME (512) 306-6354 firstname.lastname@example.org
Vice President—Northwestern Region Debbie Tofte, GML (425) 483-3359 email@example.com
President-Elect Jill Kinsman (206) 344-7827 firstname.lastname@example.org
Vice President—Western Region Lyman King III, CMI, CME (916) 967-4653 email@example.com
Senior Vice President Christine Pollard (607) 226-1046 firstname.lastname@example.org
Secretary Sara Vasura (703) 255-7460 email@example.com
Vice President—Central Region Kelly Hendricks (314) 398-6840 firstname.lastname@example.org
Treasurer Jeanne Evans, CME (918) 431-0155 email@example.com
Vice President—Eastern Region Katrica J. Driscoll, MML, CME, CMI (919) 877-5683 firstname.lastname@example.org
Parliamentarian Hulene Works (972) 494-2788 email@example.com
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
2013 Board of Directors & Staff Daphne Large President (901) 259-5105 firstname.lastname@example.org Maureen Devine Vice President (413) 736-4511 email@example.com Donald J. Unger Ex-Officio (303) 670-7993, ext. 222 firstname.lastname@example.org Mike Brown Treasurer (800) 925-6691, ext. 4350 email@example.com Nancy Fedich Director–Chair Legal Committee (908) 813-8555, ext. 3010 firstname.lastname@example.org William Bower Director–Chair Tenant Screening Committee (800) 288-4757 email@example.com Tom Conwell Director–Liaison Legislative Committee (800) 445-4922, ext. 1010 firstname.lastname@example.org
Judy Ryan Director–Chair Strategic Alliance Partnership Committee (800) 929-3400, ext. 201 email@example.com Renee Erickson Director–Chair New Membership Committee (866) 932-2715 firstname.lastname@example.org Sharon Bieszk Director (262) 542-1700 email@example.com Mary Campbell Director (701) 239-9977 firstname.lastname@example.org Terry Clemans Executive Director (630) 539-1525 email@example.com Jan Gerber Office Manager/Member Services (630) 539-1525 firstname.lastname@example.org
Weâ€™re more than just our niches.
Brokers work with borrowers of all credit types. First Guaranty offers mortgage products of all types, too. We have the mortgage that best fits your customer, and we support it with superior underwriting, an easy-to-use origination platform and an experienced team focused on working with brokers and independent L.O.s. Your borrowers deserve the best. We can help.
n Kansas Mortgage Professional Magazine n MAY 2013
Your most qualified borrowers deserve a standout lender.
When to Stop Thinking By Jake Soley
MAY 2013 n Kansas Mortgage Professional Magazine n
“Overthinking” marketing is a common error many brokers and lenders make when putting forward the best effort for their marketing approaches. Oftentimes, the best thoughts lead them down the path to failure. This can be attributed to thinking from the wrong perspective. Lenders and brokers without much experience will put forward what they think is the best as it suits their personal taste instead of looking at their approach from the eyes of their target consumer. Many also lose sight of the goal that direct mail is to spark the interest of the borrower to call and not to sell the borrower on the loan program being proposed. The most common error in “overthinking” is in piece design. During the design process, the lender/broker envisions what they would respond to or attempt to elaborate in strong detail on what they are selling the borrower. This will often lead to a piece that is over the head of the borrower, using terms that a layman may not be familiar with or spending too much effort explaining why they should refinance with you. No borrower wants to read a two-page document about why they should refinance with you. When it comes to approach, the acronym K.I.S.S. (Keep It Simple Stupid) comes to mind. If the borrower does not understand terms that are simple and easily understood, they simply will not respond. With direct mail, you only have a few seconds to capture the interest of the reader. Far too often, we encounter clients who saturate their mail design with verbiage that “explains” the loan program, thus relying on the mail piece to sell the loan program. This approach clutters the piece with information that most borrowers will not read, and in many cases, often confuses them. The most effective approach is when the piece is direct, highlights the benefits of the loan program you are targeting and is short with a call to action. Using color to highlight the benefits of the program amplifies the points that trigger the borrower to respond. Don’t overthink beyond these simple tenants. Another common “overthinking” mistake is when companies want to test a market, but do not want to spend the money necessary to hit the quantity needed to give the test a fair shot. Many are hesitant to break into a new market out of fear of failure and money wasted. Testing should be approached as a normal drop would; the best test will come from dropping the maximum amount of pieces for the maximum return. By testing a minimal quantity, you will not hit enough of the quality within your universe to extract a comfortable return that would justify additional mail efforts. When testing, always focus on testing at least 5,000 pieces. With around 5,000 pieces is where the best returns begin. When thinking of your mail campaigns, whether they are continuous or are chartering into new territory, take simple steps in your approach to the design and target. Jake Soley of Titan List and Mailing Services has specialized in mortgage-specific marketing since 2006. Jake’s commitment to educating his customers on the proper steps to take when launching direct mail programs has catapulted him as a leader in mortgage direct mail. He may be reached by phone at (800) 544-8060, ext. 209 or e-mail email@example.com.
elite performer Set Your Goals! By Andy W. Harris, CRMS
s a small business owner, it’s important to consider and respect the vital need for goal setting. Yes, if you originate mortgage loans you are a self-employed small business owner. If you hang your hat at a company with 5,000 employees or five employees, it won’t make a difference to your title. The success of your small business is only determined by the person you see in the mirror every morning and the team you work with daily. Setting and documenting your own tangible career goals is a necessity. The first plan in developing goals is to understand the two primary factors for success:
l Self-motivation: The ability to motivate yourself internally and work hard without requiring constant external assistance or someone else to push you. This is the single most important quality any person can hold to be successful. To have a successful business and to be the best employee possible, you must be consistently self-motivated regardless of the circumstances you face. l Vision: The ability to see the future and actually visualize meeting your goal is vital. If you cannot see yourself reaching your goals or lack the determination, than there is no point in setting goals. You must have a vision in sight at all times to support your self-motivation, as well as planning accord-
“The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” —Willam Pollard
ingly and preparing changes in the future.
Once your goals are established, make sure you remove any outside pressures if possible. In a transactional-based commissioned business, make sure you control your balance sheet more than your balance sheet controls you. Save more than you spend and don’t borrow money unless secured to real estate for housing or responsible investment. Limiting your liabilities will reduce stress and allow you to focus more on business and on your asset column. There are numerous benefits for those who establish and actually write down their goals. The number one reason people don’t document goals is that they don’t want to be held accountable if they fail to reach their own goals. How ridiculous is that? If this has crossed your mind, really think about what this means. It truly means that you’ve already planned to fail. Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and 2010-2011 president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431 or e-mail firstname.lastname@example.org or visit VantageMortgageGroup.com.
n Kansas Mortgage Professional Magazine n MAY 2013
Waiting for the
CFPB By Jonathan Foxx y sources tell me that the Consumer Financial Protection Bureau (CFPB) will soon announce substantial monetary penalties and other administrative actions against a large non-bank. I guess it is inevitable that when such an announcement is finally out and about, humans—and especially the financial services type humans—will be easily aroused to panic—which means the nascent, CFPB exam preparation industry will receive a steroidal boost. And the frisson of dismay and frenzy will be stirred up even further by the ambulance chasers, running to the rescue, with their merry band of products and services to quell the indomitable, bureaucratic brute. There are plenty of compliance and law firms scouring the horizon for new clients that seek CFPB exam readiness. Indeed, I know of one such firm that has made fear-mongering into a fine art, whirring about and speaking at industry events where a surfeit of anxiety and angst may be supremely generated. As the affrighted crowd bounds into the arms of these ushers of deliverance, seeking the aegis of their singular protection, they are quite sold on a full scale risk assessment and sempiternal, on-going monitoring. But the prospective clients, sore at the loss of money in this endeavor, need not be too vexed, inasmuch as they do get action plans, some risk assessment tools, and assorted bric-a-brac of one-size-fits-all templates “specially drafted” for their own unique purposes. Our industry is a strong bunch, survivors of the toughest real estate cycles, and accustomed to adapting to regulato-
MAY 2013 n Kansas Mortgage Professional Magazine n
ry mandates. We have seen the largest fall and the lowest rise. We push back, when needed; and we push forward, when appropriate. We know that our industry is the backbone of the economy. Our future will not be compromised by cold sweat and consternation. So, when considering the legal and regulatory compliance requirements of the CFPB, how alarmed and apprehensive should we be?
Trembling before the Tsar In the Tsardom of Russia, most people never met the Tsar. They met his agents, which at the time meant the duly constituted orders of functionaries who acted in accordance with the law. The people who did meet the Tsar, even nobles, were known (and even expected) to tremble in his presence. Like the custom required by English kings, the people who stood in the presence of the Tsar stated their views, when called upon to speak, and, upon finishing their statements, they left the reception chamber by bowing and slowly backing out of the room, always facing the Tsar. This kind of obeisance showed respect for the established order and reflected the insuperable power and primacy of the monarchy. But we do not live in a monarchy and the CFPB is not the Tsar. We need not tremble before the CFPB! There are a set of guidelines that the CFPB requires for implementation by lenders, mortgage brokers, servicers, and others in the financial services sector. Most of these guidelines are not particularly ponderous, unless the foregoing entities hadn’t been implementing them all along. It is not as if we do not know the importance of fair lending or proper data collec-
tion pursuant to the Home Mortgage Disclosure Act (HMDA). There is no real mystery regarding compliance with advertising rules. Every company is keenly aware of the mandates set forth in the Real Estate Settlement Procedures Act (RESPA) and the Truth-in-Lending Act (TILA). At this point in the industry’s growth, who does not know about the importance of risk controls and risk mitigation? Who does not know about the central importance of responsible and knowledgeable management? How many companies willfully ignore consumer complaints? A whole generation of bankers, lenders, brokers, and servicers have cultivated a heightened sensitivity to the Fair Credit Reporting Act (FCRA) and Fair & Accurate Credit Transaction Act (FACTA), Gramm-Leach-Bliley Act (GLBA), Bank Secrecy Act and Anti-Money Laundering Program requirements, Equal Credit Opportunity Act (Regulation B), Home Ownership & Equity Protection Act (HOEPA), Secure & Fair Enforcement for Mortgage Licensing Act (SAFE Act), the Fair Housing Act, the Anti-Predatory Lending Act, the National Do-Not-Call Registry, and monitoring third party service providers (sometimes neutrally referred to as “vendor management”). These are the sorts of areas about which the CFPB has an interest in ensuring consumer financial protection. None of the aforementioned is strange or new to anybody who has been paying attention!
I have said many times that “Preparation is Protection”—and most companies associated with residential mortgage loan originations and servicing have been preparing, thus protecting themselves, for a long, long time. Many have been through numerous state and federal banking examinations, responding, where needed, with corrective actions. Not a few have retained competent mortgage risk management firms or in-house compliance advisors. Even those who cannot afford compliance counsel have participated in one way or another in conferences, conventions, and training venues in order to be educated in regulatory developments. Everybody now knows unequivocally that sales are cemented to compliance.
Who’s afraid of the big bad wolf? As I wrote recently in this publication, the CFPB has considerable enforcement powers.1 Among other things, it can rescind or reform contracts, require the refunding of money to a consumer and demand other forms of restitution, mandate the disgorgement and refunding of various types of assets, compel the return of real property, cause fees and other compensation to be disgorged for unjust enrichment, require the payment of damages or other monetary relief, cause public notification regarding a violation, limit the activities or functions of alleged violators, and, of course, exact civil monetary penalties. But, in terms of the remedies mentioned above, none of these administrative actions is really new. Virtually every state banking department in the country has most of these enforcement
powers. Nearly all prudential regulators have many such authorities. Banks and nonbanks that have undergone routine examinations are not an unsuspecting lot, completely unprepared for the kinds of detailed review that the CFPB conducts. Having watched the CFPB in action, I can say that a firm that is adequately prepared for a state or federal examination should be prepared for a CFPB examination. Is the CFPB’s examination a bit more detailed? Yes. But most of the exam requirements are re-treads or the kinds of state and federal banking information and documentation requests or guidelines that are mostly customary and pro forma. Does the CFPB create some new readiness challenges? Yes. However, for the most part, if an entity that is subject to the authority of the CFPB is already implementing the “Four Ps”— principles, policies, procedures, and practices—it should be in a position to respond promptly, confidently, and accurately to CFPB examination protocol requirements. To be utterly reductive, the CFPB examination is not a known-unknown, or an unknown-unknown, but merely an unknown that is actually, mostly known!
tions heretofore experienced, or what we thereby learned toward improving our compliance with applicable banking laws. Of course, my firm offers CFPB examination preparedness. We were among the first to set up such procedures, and we even offered (at no fee) a Compendium to navigate the use of CFPB’s Supervision and Examiner Manual—Version 1. CFPB exam readiness is important to undertake for certain types of entities.2 Like Vladimir and Estragon, some companies wait around endlessly for the CFPB to show up. Eventually, it may! But in the meantime, doesn’t it make sense to prepare determinedly through proper compliance with all the rules, standards, guidelines, and laws involving resi-
dential mortgage loan originations? Isn’t it more cost-effective and responsive (rather than reactive) to carefully prepare through continual due diligence? To think that some company or expert is going to offer regulatory deliverance on a silver platter is simply unrealistic. Be cautious of such promises! Our firm works hard to ensure that our clients are prepared for any banking or due diligence examination, state or federal, Agency or Warehouse Bank, including certainly an examination by the CFPB. We see our role as providing guidance to identify, mitigate, reduce, and, where possible, eliminate risk. This is because we know that going to the goal is the goal! That is a mission which we all should feel confident in pursuing.
Jonathan Foxx is president and managing director of Lenders Compliance Group and Brokers Compliance Group, mortgage risk management firms devoted to providing regulatory compliance advice and counsel to the mortgage industry. He may be contacted at (516) 442-3456, by e-mail a t j f o x x @ l e n d e r s c o m p l i a n c egroup.com, or visit www.LendersComplianceGroup.com or www:BrokersComplianceGroup.com.
Footnotes 1—Foxx, Jonathan, The Enforcement Powers of the Consumer Financial Protection Bureau, National Mortgage Professional Magazine, April 2013, Volume 5, Issue 4, pp. 8-32. 2—See www.LendersComplianceGroup.com, Footer Section: CFPB Compendium-V1.
Waiting for Godot 11
n Kansas Mortgage Professional Magazine n MAY 2013
In the absurdist play “Waiting for Godot,” by Samuel Beckett, two characters, Vladimir and Estragon, wait for the arrival of someone named Godot (the “t” is silent). While waiting for Godot, the two men, both vagrants, occupy their time by philosophizing, sleeping, arguing, singing, exercising, and even considering suicide anything “to hold the terrible silence at bay.” But Godot never shows up and, although they agree to leave, neither of them ever leaves. It seems to me that we can be prepared for the CFPB examination, without having to endure the rancorous agitation stirred up at conferences by CFPB “experts,” sales pitches by “compliance” firms with a better eye for mining new clients than providing demonstrably worthwhile services, though they promise (for a fee, of course) to offer churned-out, colored-coded charts and unceasing monitoring. To be sure, being unprepared for the unknown is not qualitatively the same as being prepared for the mostly known! It is easy to conflate the two, but often costly. Indeed, there are aspects of preparation that probably do require professional support, if a company has not been towing the regulatory line for some time. There may be gaps in legal and regulatory compliance knowledge that will affect management’s ability to prepare incisively for a CFPB examination. But we should not underestimate our own track record of complying with the expectations of Examiners and Regulators. We should not depreciate or otherwise minimize our own efforts to prepare for the many state and federal and Agency regulatory examina-
EWSFLASH l MAY 2013 l NMP NEWSFLASH l MAY 2013 l NMP NEWSFLASH l M Originator Survey Finds Regulations Remain Top Industry Concern
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Hammerhouse LLC has released the results from its 3rd Annual Survey of Originator Opinions. The Annual Survey asked originators for their opinions on critical issues facing the mortgage industry and impacting their performance of their jobs. Of the significant sample of more than 350 active mortgage loan originators that responded, about 81 percent have been originating mortgage loans for more than 10 years. Key responses to survey questions included: l Regulatory oversight remains the top issue facing the industry. l Mid-sized, non-depository lenders are superior alternatives to large depositories or brokers. l Operational capability of a lender is clearly their most important attribute. l Leaders of lending organizations are judged by their integrity and the clarity of their vision. l Recruitment of top originating talent has intensified. l Loan volume will rise, as will their personal production. l Marketing must be diversified and involve referral relationships with professional partners. “The best originators in 2013 are a very experienced group of professionals that are in high demand by lenders, but who demand outstanding operations, technology and leadership from their employers,” said Drew Waterhouse, managing director of Hammerhouse LLC. The questions from the 3rd Annual Survey of Originator Opinions cover important factors from each of the six core business areas identified by Hammerhouse as integral to the relationship between originators and lenders: Leadership, Culture, Business, Operations, Technology and Geography. “The sheer size of the mortgage originator responders with more than 10 years of experience suggests a need for lenders to seek younger origination talent by developing talent in-house or through recruitment from outside,” said Waterhouse. “The results of the
2013 Survey of Originator Opinions are supportive of these forecasts. In our 2013 Survey, we hear a very clear statement from originators that they are professionals who expect to work with effective lenders and with other professionals in service of the housing and financial needs of consumers.”
Mortgage Banker Per-Loan Profits Down $200 to $2,256 in Q4 Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $2,256 on each loan they originated in the fourth quarter of 2012, down from $2,465 per loan in the third quarter, as increasing costs outweighed higher revenues, the Mortgage Bankers Association (MBA) reported. “Per-loan profits decreased in the fourth quarter, primarily driven by rising costs,” said MBA Associate Vice President of Industry Analysis Marina Walsh. “Historically, production costs have dropped with rising volume. In this quarter, however, despite high origination volumes, per-loan costs reached the highest levels we have seen in this study, other than during the first half of 2011, when origination volume was 60 percent lower.” MBA’s Mortgage Bankers Performance Report series offers a variety of performance measures on the mortgage banking industry and is intended as a financial and operational benchmark for independent mortgage companies, bank subsidiaries and other non-depository institutions.
FHFA Directs GSEs to Only Purchase Loans Meeting QM Requirements The Federal Housing Finance Agency (FHFA) has announced that it is direct-
ing Fannie Mae and Freddie Mac to limit their future mortgage acquisitions to loans that meet the requirements for a qualified mortgage (QM), including those that meet the special or temporary qualified mortgage definition, and loans that are exempt from the “ability-to-repay” requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act. In January, the Consumer Financial Protection Bureau (CFPB) issued a final rule implementing the ability-to-repay provisions of Dodd-Frank, including certain protections from liability for loans that meet the criteria of a qualified mortgage as outlined in the rule. Beginning Jan. 10, 2014, Fannie Mae and Freddie Mac will no longer purchase a loan that is subject to the ability-to-repay rule if the loan: l Is not fully amortizing, l Has a term of longer than 30 years, or l Includes points and fees in excess of three percent of the total loan amount, or such other limits for low balance loans as set forth in the rule. Effectively, this means Fannie Mae and Freddie Mac will not purchase interest-only loans, loans with 40-year terms, or those with points and fees exceeding the thresholds established by the rule. Fannie Mae and Freddie Mac will continue to purchase loans that meet the underwriting and delivery eligibility requirements stated in their respective selling guides. This includes loans that are processed through their automated underwriting systems and loans with a debt-toincome ratio of greater than 43 percent. Loans with a debt-to-income ratio of more than 43 percent are not eligible for protection as qualified mortgages under the CFPB’s final rule unless they are eligible for purchase by Fannie Mae and Freddie Mac under the special or temporary qualified mortgage definition. Adoption of these new limitations by Fannie Mae and Freddie Mac is in
keeping with FHFA’s goal of gradually contracting their market footprint and protecting borrowers and taxpayers.
Survey Finds Appraisers Finding Hope in Rebounding Housing Market A recently completed survey conducted by United States Appraisals found appraisers mildly encouraged by the current housing market. When asked, “What is your current level of confidence in the housing market,” 54.7 percent of respondents answered mildly or moderately strong, while 24.9 percent were neutral. The survey was completed by United States Appraisals’ nationwide panel of residential appraisers. United States Appraisals plans to conduct this survey quarterly to monitor trends and opinions in their appraiser network. “Appraisers tend to be realistic, focused on their local markets and unmoved by news stories and national numbers,” said Aaron Fowler, president of United States Appraisals. “We believe they provide a good gauge of the status of the housing market. After the last few years, a mildly strong level of confidence shows some definite improvement in appraiser attitudes.” Opinions were slightly higher regarding home values with 46.2 percent of respondents reporting a mild increase in values in their area, while 15.6 percent were seeing a moderate value increase, while 24 percent were neutral. Despite somewhat tepid feelings on the market in general, most appraisers reported increased order volume, as 26.1 percent saw mild increases, 17.8 percent saw moderate increases and 18.5 percent reported significant volume increases. Only 15.3 percent of respondents reported any reduction in their order volume. “We all know the real estate market
continued on page 16
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DocMagic Launches New 4506-T Income Verification System and Transparency App
MAY 2013 n Kansas Mortgage Professional Magazine n
DocMagic Inc. has announced its new 4506-T service, an automated service for income verification that provides a quick and complete service, automatically submitting borrowers’ eSigned forms to the Ives vender of their choice for immediate processing by the IRS. DocMagic’s automatic income verification process accelerates workflow so that critical data, typically entered manually on the IRS Web site, is handled instantly in one streamlined solution. Bundled with the initial disclosure package, or served-up separately, the eSigned 4506-T service saves time, increases efficiency, and protects document integrity. DocMagic handles all the details of compliance with federal law ensuring that forms meet all current regulations. DocMagic’s eSign technology delivers the signed 4506-T in compliance with the standards and requirements of the federal Electronic Signatures in Global and National Commerce Act (ESIGN). Since 2010, DocMagic has processed over 23 million eSign requests. The automated 4506-T service is just one more way that DocMagic’s technology improves the borrower’s experience, increases efficiency for the lender, and ensures compliance and data integrity along the way. DocMagic’s technology solutions and compliance expertise keep you on the leading edge of the mortgage lending industry. DocMagic Inc. has also announced the launch of BorrowerMobile, an interactive application that turns any tablet or smartphone into a seamless communication tool for borrowers and lenders. Through BorrowerMobile, lenders simply invite borrowers to download the BorrowerMobile application and the system establishes a direct communication link between the lender and borrower, allowing all parties to interact and share information from anywhere—communication is instant, seamless, and completely secure. BorrowerMobile brings transparen-
cy to the loan process. Borrowers have constant access to their loan status, giving them the ability to anticipate and understand next steps; electronically satisfy loan conditions, and eSign documents and disclosures … all with the touch of a finger. BorrowerMobile allows lenders and closing agents to communicate loan conditions immediately, giving borrowers a real-time “to do” list. As borrowers satisfy the list of conditions, the application instantly updates the lender and closing agent as items are satisfied. BorrowerMobile leverages DocMagic’s eSign process, the fastest, easiest and most secure way to get documents signed. Borrowers can review and eSign loan documents and disclosures, attach any required trailing documents, or provide additional information instantly. BorrowerMobile can be easily customized to share the lender’s unique branding style and the system can easily integrate with any loan origination software system (LOS).
UWM Unveils Free Marketing Program for Brokers United Wholesale Mortgage (UWM) has announced that it has launched a free Web portal that enables brokers they work with to produce customized flyers, with options geared towards also marketing to borrowers and real estate agents. The system offers an easy-to-use interface by which to tailor marketing pieces, thus promoting the growth of their businesses and personal brands. Users can log into the portal and quickly generate a free PDF for e-mail purposes of self-printing whereby contact information, company name, logos, photos and more can be configured to create a professionally designed marketing piece. Functionality at the site allows brokers and agents to personalize flyers, change content and instantly download them into formatted PDFs. UWM makes available options
to order full-color printed copies that can be used to hand out to borrowers or realtors, as mailer campaigns, or in any way the like. “The initial response of this free service has been well-received by originators, and we expect the portal to become a widely used marketing tool over the next few months,” said Mat Ishbia, president of UWM. “We strive to continually make our originators more successful; the development of this free service helps them to accomplish that.”
New Secure Settlements Offerings to Help Mortgage Lenders Increase Consumer Protection
Secure Settlements Inc. (SSI) has announced that it has launched two new lender-subscription fraud tool programs assisting in the evaluation, monitoring and reporting of closing agent risk. Closing Guard is the result of the continuing evolution of the SSI risk management program, designed to help lenders uncover and reduce fraud risks while simultaneously providing better consumer protections surrounding the residential mortgage closing. Following consultation with key industry partners, including retail banks, warehouse banks, mortgage lenders, title and escrow agents and professional associations, SSI has created a subscription fee based service that allows banks to adopt the SSI Closing Guard program as a new tool for quality control (QC) and loan quality assurance while shifting the cost of vetting, monitoring and reporting of risk away from agents. The cost shift allows banks and mortgage lenders to avoid competitive disadvantages while meeting their regulatory obligation to address closing agent risk in the daily operation of their businesses. The agent-paid model will not disappear. Agents who choose to become vetted and join the
SSI National Closing Agent database as a marketable credential can choose to pay the applicable vetting fee and gain the advantages of independent vetting, monitoring and reporting for 12 months, which gives them access to the SSI photo ID card, SSI Vetted Agent Seal, eligibility for discounted insurance, free fraud and best practice resources, and discounted continuing education programs. “These new programs maintain SSI’s position as the industry leader and innovator when it comes to third party service provider risk management,” said SSI President and CEO Andrew Liput. “We are excited about the launch of Closing Guard and Quick Check and look forward to doing the ‘heavy lifting’ needed by mortgage lenders in this area of regulatory compliance so they can focus on what they do best: Selling loans.” Lenders who desire to do business only with vetted agents for risk management purposes will pay the Closing Guard subscription fee which will allow all of the agents they choose to handle their funds and documents to become vetted, without any cost to those agents. The subscription fee for lenders is based upon lender loan volume, and it includes agent vetting, ongoing monitoring and reporting, and unlimited access to the searchable SSI database. Agents will be vetted and rated for risk using the same comprehensive risk evaluation methodology SSI has pioneered previously as the leader in closing agent risk management.
360 Mortgage Group Releases No MI NOMI Offering 360 Mortgage Group has announced that it has expanded its product portfolio by offering a new No Mortgage Insurance Loan or “NOMI Product” to borrowers purchasing a home. This first-of-its-kind NOMI product offers borrowers with a less than 20 percent downpayment the opportunity to avoid mortgage insurance (MI) payments without interest rate adjustments or other price inflations. “This unique product provides borrowers with an opportunity to benefit from low interest rates without having
to pay mortgage insurance,” said Mark Greco, president and founder of 360 Mortgage. “Many lenders currently offer a NOMI-type product, but add on a pricing adjustment that increases the borrower’s interest rate and overall cost of owning a home. Our NOMI Product will give mortgage brokers the opportunity to help home buyers save thousands of dollars annually and realize the dream of sustainable homeownership.” The NOMI Product has no pricing inflations or adjustments to interest rates. This product allows borrowers with a less than 20 percent downpayment to avoid the cost of mortgage insurance rates and take advantage of the lowest potential interest rates available in the marketplace. Key guidelines for NOMI include: Purchase transactions only, a minimum 740 FICO score, a maximum LTV 95 percent, no mortgage insurance underwritten, and the residence must be owneroccupied. “360 Mortgage is committed to offering our mortgage brokers partners relevant products with competitive pricing, extensive product knowledge, and bestin-class technology and service,” said Greco. “Our objective is to enable all third-party originators to offer borrowers the best mortgage solution and operate efficiently within our model, which is based on service, speed, and sustainability.”
McLean Mortgage Announces New LoanFirst Program
CoesterVMS has launched its CFPB Suite, a Web-accessible compliance program that allows lenders to verify compliance with all third-party regulations set forth by the Consumer Financial Protection Bureau (CFPB), every time an appraisal is done. CoesterVMS’ CFPB Suite is powered by a proprietary technology that logs, files and sorts all CoesterVMS’ compliance related activities for every third party regulation, from appraiser independence and appraiser selection requirements, to mandates for customary and reasonable
any third party regulation on a per loan basis, via their own CoesterVMS.com client pages. The CFPB Suite provides more than a yes/no response to its compliance checklist. It also provides supporting information for each regulation, so lenders know the steps CoesterVMS took to stay compliant. “Using a third-party service provider can be a lender’s best decision for specialized services like appraisal management, but engaging the wrong provider exposes them to unnecessary risk,” said CoesterVMS CEO Brian Coester. “The CFPB has stated that it expects lenders to do their due diligence on the service
pliance with every CFPB third party regulation that could possibly be considered their responsibility. We’re making that due diligence easy.”
DataQuick Launches New REO-to-Rental Neighborhood Rankings
DataQuick has announced the availability of REO-to-Rental Neighborhood Rankings, which leverages the compacontinued on page 63
Be An Ultimate Mortgage Exhibitor!
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The mortgage market is hot, and we’re kicking off the summer with the biggest gathering of mortgage origination pros so far this year! The Ultimate Mortgage Expo is brought to you by Agility Resources Group, creators of the incredible NAMB National conference and the same management team that created the highly successful New England Mortgage Expo.
Join companies like United Wholesale Mortgage, Maximum Acceleration, Quality Mortgage Services, Reverse Mortgage Solutions, Mortgage Educators, National Mortgage Professional Magazine, Best Rate Referrals, Carrington Mortgage Services, National Credit Fixers, Appraisal Nation, Yodle.com and more!
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n Kansas Mortgage Professional Magazine n MAY 2013
Why should you be an Ultimate Exhibitor or Sponsor? n Innovative and effective techniques to drive crowds of top mortgage originators to the show, and to you. Invite all your customers and prospects to attend the entire conference for free — a $295 value. n We’re giving all paid attendees a chance to get all of their required 8 hours of continuing education for free. n Speaking opportunities available to select sponsors. n We’re expecting 700-1,000 attendees n We drive traffic into the Exhibit Hall constantly, where all meals and beverages are served. We give away a 42-inch HDTV at every break! And we’re hosting two cocktail receptions for added networking! n We offer affordable exhibiting and sponsorship opportunities. This is not just a great conference for attendees, but an exciting and profitable one for our vendors as well.
McLean Mortgage Corporation announced that the company has released a special program to aid homebuyers and realtors in today’s real estate market. McLean Mortgage Corporation recognizes the special needs of prospective homebuyers today in a market characterized by increasingly scarce inventory and competition from cash bidders. The LoanFirst Program allows for a prospective buyer to make application for a preapproval mortgage loan before they purchase a home. McLean will not merely issue a pre-qualification opinion based upon this application, but actually fully process the credit and income documentation of the borrower so that it can be underwritten by an underwriter and a full pre-approval issued. This preapproval would be subject to a sales contract on a property, as well as a satisfactory appraisal and title policy – after a property is identified. “In my experience in the mortgage industry, I have always felt that the average Realtor and homebuyer went about the process backwards by shopping for a home and then applying for a mortgage,” Nathan Burch, president of McLean Mortgage Corporation, said. “Just to satisfy a seller, a Realtor will call a loan officer the day before a contract is presented to obtain a pre-qualification letter, which is merely an opinion and does not bind a lender.”
fees, and current state licensing laws. providers it engages. The CFPB Suite Compliance Verified Coester customers can access that allows lenders to find out the actual Via New CoesterVMS CFPB information, verifying compliance on steps CoesterVMS took to ensure comSuite
Two Reverse Mortgage Misconceptions By Ralph E. Rosynek Jr.
As loan originators, our ability to overcome objection is the key to successful transaction completion. In the formative years of the reverse mortgage industry, it became very apparent that the reverse mortgage was a product which cannot be sold. It is a product which must be delivered with an educational component from loan origination professionals who also understand the concerns of a class of borrowers who have been targeted due to their lack of information and resources. Despite significant consumer education and information efforts over the past years by industry professionals, U.S. Department of Housing & Urban Development (HUD) counseling resources and reverse mortgage media discussions, reverse mortgage loan acceptance by seniors continues to involve misconceptions in many cases. Two of the most common misconceptions are:
1. The bank owns my home The bank does not own the home. A reverse mortgage is secured by a primary lien on the property, no different than a forward traditional mortgage, with one minor difference. Upon recordation of the lender’s interest, a second mortgage instrument (not a second mortgage facility) is recorded against the property subsequent to the lender’s first lien position. This second mortgage instrument is in favor the Secretary of HUD and allows for the seamless transition of loan control should the first lien holder lender become impaired and unable to be responsible for continuing to service and support the loan.
2. Reverse mortgages are expensive
MAY 2013 n Kansas Mortgage Professional Magazine n
In the past, the costs, expenses and fees associated with a Home Equity Conversion Mortgage (HECM) transaction were greater than the products being offered today, The more “expensive” years were, in part, due to decreased options, features and benefits; lesser volume restricting potential secondary and investment banker interest; and a scarcity of vendors and resources familiar with the product. Today, the costs, fees and expenses associated with the reverse mortgage transaction have been reduced due to greater Wall Street investor opportunities recognizing the quality of the product, the offering of a “saver” product group alternative to those borrowers not seeking full proceeds access, and the offering of lender credits resulting in additional borrower proceeds. The reverse mortgage product may not be the right fit for all senior borrowers. As the efforts of many resources continue to whittle away at product misconceptions, the commitment to preserve the product for use as a viable choice for a senior to remain in their home and maintain financial independence has not changed over the years since the introduction of the reverse mortgage in 1989. If you are considering expanding your market share and adding the reverse mortgage product, now is the time to look at this growing opportunity. Your market entry will require a sales force committed to education with knowledge of this increasing class of borrowers. One of the most important aspects of your plan should be your ability to draw upon the strengths of a recognized Lender and staff for guidance and assistance to achieve your success. Ralph E. Rosynek Jr. is senior vice president, national production manager for RMS, Reverse Mortgage Solutions Inc. RMS provides complete HECM program training, product availability and partnership access to mortgage professionals through the company RMPath wholesale and correspondent channels. He may be reached by phone at (281) 404-7970 or e-mail firstname.lastname@example.org or email@example.com.
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is a zip code by zip code driven business,” explained Fowler. “Our appraisers are our eyes into the local markets and the backbone of our business. We want to make sure we stay engaged and understand their vision of the marketplace.”
FHFA Extends HARP Through 2015 The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP) by two years to Dec. 31, 2015. The program was set to expire Dec. 31, 2013. “More than two million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said FHFA Acting Director Edward J. DeMarco. “We are extending the program so more underwater borrowers can benefit from lower interest rates.” In addition, FHFA will soon launch a nationwide campaign to inform homeowners about HARP. This campaign will educate consumers about HARP and its eligibility requirements and motivate them to explore their options and utilize HARP before the program ends. HARP is uniquely designed to allow borrowers who owe more than their home is worth the opportunity to refinance their mortgage. Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers.
Commercial/Multifamily Market Closes $200 Billion-Plus in 2012 Commercial and multifamily m o r t g a g e bankers closed $244.2 billion of loans in 2012 according to the Mortgage Bankers Association’s (MBA) 2012 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation. Loans originated for Fannie Mae, Freddie Mac and FHA in 2012 collectively totaled $77.6 billion, and represented the leading investor group. Commercial bank and savings institutions saw the second highest volume, $56.9 billion and were followed by life insurance companies and pension funds; CMBS issuers; REITS, mortgage REITs and investment funds; and credit companies and specialty finance firms. In terms of property types, multifamily properties saw the highest origination volume, $103.2 billion, followed by retail properties, office buildings, industrial, hotel/motel and health care. First liens accounted for 98 percent of the total dollar volume closed. Driven in part by greater coverage,
the reported dollar volume of commercial and multifamily mortgages closed in 2012 was 33 percent higher than the 2011 volume. Among repeat participants in the survey, the dollar volume of closed loans rose by 15 percent. “The commercial and multifamily mortgage market saw solid growth during 2012,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “The multifamily market continued to be a major driver of activity, and nearly every investor group increased their activity from the year before. With a continuation of low interest rates and improving property markets, originations are on track for continued growth this year.”
Four Million-Plus Borrowers to Receive Servicing Settlement Payouts Payments to 4.2 million borrowers began April 12 following an agreement reached by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board with 13 mortgage servicers. The agreement, which was reached earlier this year, provides $3.6 billion in cash payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the following companies, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. The payments will range from $300 to $125,000. For borrowers whose mortgages were serviced by 11 of the 13 servicers—all servicers but Goldman Sachs and Morgan Stanley—checks will be sent in several waves beginning with 1.4 million checks on April 12. The final wave is expected in mid-July 2013. More than 90 percent of the total payments to borrowers at those 11 servicers are expected to have been sent by the end of April. Information about payments to borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley will be announced in the near future. In most cases, borrowers will receive a letter with an enclosed check sent by the Paying Agent—Rust Consulting Inc. Some borrowers may receive letters from Rust requesting additional information needed to process their payments. Previously, Rust sent postcards to the 4.2 million borrowers notifying them of their eligibility to receive payment under the agreement. Rust is sending all payments and correspondence regarding the foreclosure continued on page 18
“ Nobody cares how much you know, until they know HOW MUCH YOU CARE .” – Theodore Roosevelt
K N O W L E D G E A N D K N O W H O W. And at the end of day we care about helping you get the best for your client. In fact
streamline a process or uncover a new opportunity, we’ll do it.
S U B M I T. A C H I E V E . G R O W.
2013 © Rushmore Loan Management Services LLC. All Rights Reserved. Equal Housing Opportunity. Rushmore Loan Management Services LLC, NMLS ID# 185729, 15480 Laguna Canyon Road, Suite 100, Irvine, CA 92618. 1-866-699-5600. Not an offer for the extension of credit or a commitment to lend. Intended for mortgage brokers. Not licensed in all states. Alabama Consumer Credit (#21602); Alaska Mortgage Lender (AK185729); Arizona Wholesale Lender Exemption; Arkansas Mortgage Banker-Broker-Servicer (#101513); Licensed by the Department of Corporations under the California Residential Mortgage Lending Act (#4131068); Colorado Wholesale Lender Exemption (Regulated by the Division of Real Estate); Connecticut Mortgage Lender (ML-185729); Delaware Mortgage Lender (#012394); District of Columbia Mortgage Lender (MLB185729); Florida Mortgage Lender-Servicer (MLD622); Georgia Mortgage Lender Licensee (#24224); Hawaii Mortgage Loan Originator Company (HI-185729); Idaho Wholesale Lender Exemption; Illinois Residential Mortgage Licensee (MB.6760723); Indiana DFI First Lien Mortgage Lending (#18619); Indiana DFI Subordinate Lien Mortgage Lending (#187644); Iowa Mortgage Banker (MBK2009-0083); Kansas Supervised Loan (SL.0026265); Kentucky Mortgage Company (MC71455); Louisiana Residential Mortgage Lending (#185729), Maine Supervised Lender (SLM11886); Maryland Mortgage Lender (#19168), Michigan Mortgage Broker, Lender & Servicer (FL0017075); Michigan Secondary Mortgage Broker, Lender & Servicer (SR0017076); Minnesota Residential Mortgage Originator (185729); Mississippi Mortgage Lender (185729); Montana Mortgage Lender (#185729); Nebraska Mortgage Banker (#2071); Licensed by the New Hampshire Banking Department Mortgage Banker (#15265-MB), Licensed by the New Jersey Department of Banking and Insurance Residential Mortgage Lender (#186729), New Mexico Mortgage Loan Company (185729); North Carolina Mortgage Lender (L-154769); North Dakota Money Broker (MB102411); Ohio Mortgage Loan Act Certiﬁcate of Registration (SM501700.000); Oklahoma Mortgage Broker (MB001561); Oregon Wholesale Lender Exemption; Licensed by the Pennsylvania Department of Banking Mortgage Lender (#39094); South Carolina Mortgage Lender/Servicer (MLS-185729); South Dakota Mortgage Lender (ML.04880); Tennessee Mortgage License (109273); Texas SML Mortgage Banker Registration; Utah Wholesale Lender Exemption; Vermont Lender (#6411); Licensed by the Virginia State Corporation Commission Lender License (MC-5664); Washington Consumer Loan Company (CL-185729); West Virginia Mortgage Lender (ML-24836); Wisconsin Mortgage Banker (#185729); Wyoming Mortgage Lender/Broker (#2250); Fannie Mae Seller/Servicer (#30519-000-4); HUD FHA Title II (#3094100002);Veterans Affairs Lender (#902914-00-00).
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Escrow Requirements Final Rule–Amended Already? By Laurie Spira
Issued in January, the Escrow Requirements under the Truth-in-Lending Act Final Rule (Rule) seemed straightforward. It was clear from a quick read that the Rule lengthens the time for which a mandatory escrow account established for a Higher-Priced Mortgage Loan (HPML) must be maintained. The Rule also creates an exemption for small creditors that operate predominately in rural or underserved areas and expands upon an exemption from escrowing for insurance premiums for condominiums by extending the exemption to other similar situations. A closer read shows that this regulatory change has a greater impact than appears on the surface. The Rule revises the definition of an HPML. The Rule also removes the ability-to-repay requirement and existing restrictions on prepayment penalties. Then, on April 12, the Consumer Financial Protection Bureau (CFPB) issued a proposal containing amendments to the Rule. The proposal clarifies the exemption for creditors operating in rural or underserved areas and restores the ability to pay requirements and restrictions on prepayment penalties. Do you feel like you need help keeping everything straight? Here’s a summary of the Rule, which is effective for applications received on or after June 1, 2013:
The definition of HPML will be revised Under the Rule, an HPML is a closed-end consumer credit transaction secured by the consumer’s principal dwelling with an annual percentage rate (APR) that exceeds the average prime offer rate for a comparable transaction as of the date the interest rate is set by:
MAY 2013 n Kansas Mortgage Professional Magazine n
l 1.5 percent or more for first lien loans that do not exceed the Freddie Mac conforming loan limit in effect as of the date the interest rate is set; l 2.5 percent or more for first lien loans that exceed the Freddie Mac conforming loan limit in effect as of the date the interest rate is set; or l 3.5 percent or more for subordinate lien loans. Currently, the jumbo loan threshold applies only to the mandatory escrow account requirements; however, beginning June 1, the jumbo threshold will become part of the definition.
The requirement to establish escrow accounts for HPMLs will change The Rule lengthens the time, from one year to five, for which a mandatory escrow account established for a HPML must be maintained. The Rule also creates an exemption for small creditors that operate predominately in rural or underserved areas and expands upon an existing exemption from escrowing for insurance premiums for condominium units to extend the exemption to other situations in which a consumer’s property is covered by a master insurance policy.
Other requirements relating to HPMLs may change As it stands today, the Rule deletes the prepayment penalty and abilityto-repay rules applicable to HPMLs. However, the CFPB has issued a proposed amendment to the Rule that would ensure these protections remain in place until the effective date of the Ability-to-Repay rule, which expands these protections to apply to most mortgage transactions. The CFPB has acknowledged that “certainty regarding compliance is a matter of some urgency,” and plans to make both the Rule and any amendments effective June 1. Laurie Spira is chief compliance officer with Torrance, Calif.-based DocMagic Inc. She may be reached by phone at (800) 649-1362, ext. 6446 or e-mail firstname.lastname@example.org.
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agreement at the direction of the OCC and the Federal Reserve. In determining payment amounts, borrowers were categorized according to the stage of their foreclosure process and the type of possible servicer error. Regulators then determined amounts for each category using the financial remediation matrix published in June 2012 as a guide, incorporating input from various consumer groups. Regulators have published the payment amounts and number of people in each category on their Web sites at www.occ.gov/independentforeclosurereview and www.federalreserve.gov/ consumerinfo/independent-foreclosurereview-payment-agreement.htm. While the agreement ended the Independent Foreclosure Review for the 13 companies identified above, the review continues for OneWest, Everbank, and GMAC Mortgage.
Four MI Firms to Pay $15 Million-Plus in Penalties to the CFPB in Kick-Back Probe The Consumer Financial Protection Bureau (CFPB) has announced four enforcement actions to end what the Bureau believes to be improper kickbacks paid by mortgage insurers to mortgage lenders in exchange for business. The CFPB filed complaints and proposed consent orders against four national mortgage insurance companies in order to stop these practices, which have been prevalent for more than 10 years. The proposed orders require the four mortgage insurers to pay more than $15 million in penalties to the CFPB. “Illegal kickbacks distort markets and can inflate the financial burden of homeownership for consumers,” said CFPB Director Richard Cordray. “We believe these mortgage insurance companies funneled millions of dollars to mortgage lenders for well over a decade. The orders announced today put an end to these types of arrangements and require these insurers to pay more than $15 million in penalties for violating the law.” The CFPB alleges that four mortgage insurance companies violated federal consumer financial law by engaging in widespread kickback arrangements with lenders across the country. The CFPB believes the mortgage insurers named in today’s enforcement actions provided kickbacks to mortgage lenders by purchasing captive reinsurance that was essentially worthless but was designed to make a profit for the lenders. The four companies named are Genworth Mortgage Insurance Corporation, United Guaranty Corporation, Radian Guaranty Inc., and Mortgage Guaranty Insurance Corporation. In exchange for kickbacks, these mortgage insurers received lucrative business referrals from lenders.
These types of kickbacks were a common practice in the years leading up to the financial crisis. These four companies were key players during that time. “Genworth USMI agreed to settle this review so we can focus our resources on working with customers to help borrowers responsibly achieve and maintain homeownership, and to resolve the uncertainties inherent in such a review and any possible resulting litigation,” said Rohit Gupta, president and chief executive officer of Genworth USMI.
eRecording of Documents on the Rise Nationwide Title Clearing Inc. (NTC) has announced that company experts have identified a trend that shows more documents are being recorded electronically in the nation’s Recorders’ Offices. NTC’s eRecording manager Brian Ernissee spoke on the topic at the Property Records Industry Association (PRIA) Winter Symposium as part of an expert panel. “More than 840 jurisdictions are currently eRecording-enabled, and approximately 15 new jurisdictions become enabled every month,” Ernissee said. “The volume of documents sent by NTC to record electronically has gone from 10 percent in May 2012 to well above 40 percent in February 2013. With such positive growth, we expect the total volume of documents submitted electronically for recording to be well above 50% by May.” eRecording at NTC consists of a five-step process: Submit, receive, review, record and return. eRecording makes processing land record and property documents simple, fast and secure. The process allows documents to be submitted 24/7, and is cost-effective, reducing paperwork. Documents are scanned and submitted within minutes, and are then returned electronically immediately after recording. PRIA is an organization which develops and promotes national standards and practices within the land records industry. The PRIA Winter Symposium consisted of 23 sessions on the topic of eRecords and was well-attended with 148 members, guests and speakers. Brian Ernissee, NTC’s Electronic Recording Manager, spoke on a panel at the conference called “eRecord from a Submitter’s Perspective.” Ernissee spoke about the relative newness of eRecording and how to improve upon the practice and make it widespread, drawing upon NTC’s 20 years of experience with property documents. continued on page 22
Itâ€™s All We Do!
n Kansas Mortgage Professional Magazine n MAY 2013
The President’s Corner: May 2013 he time has come for me to write an article that really points out a few of the items that continually make me scratch my head and wonder “WHAT THE HECK IS GOING ON HERE???” I have been the president of NAMB—The Association of Mortgage Professionals for nearly 18 months now, and it seems to me that we are continually fighting every day for the existence of the mortgage broker. And to say that I am a little upset about this is an understatement. I just got done attending a conference call about the qualified mortgage (QM) and the Three Percent Rule. What I don’t understand about this entire situation is that a mortgage loan is a mortgage loan is a mortgage loan, no matter who does it. So why is every change in this going towards the mortgage broker? When the SAFE Act was passed, it reminded me of the things that happened to make all of the stock brokers, no matter where they worked, to all be on the same page. There wasn’t anything different for those that worked in a bank or those that worked for a broker or broker house. Everyone was now treated the same and they all had the same rules and regulations governing their transactions. But in the mortgage business, we have different rules for different sectors of the business. Mortgage brokers are the only ones who need an agreement with the lender on how much they get paid. This is done
MAY 2013 n Kansas Mortgage Professional Magazine n
to eliminate steering. But, brokers have to complete a Steering Form to inform the customer of their loan options. Only brokers do this. Why? If you don’t need an agreement, no Steering Form even though this is where the originator can wait to find out what lender is paying the most and send it there. And everyone keeps trying to get me to open up a warehouse line so we can become lenders and not have the agreement and we can collect all of the money for our company. They also want us to become this correspondent so we do not have to disclose to the customer how much money we are making. And we can make as much money as we want because as a correspondent, that is what we get. And you don’t have to complete a Steering Disclosure either. But the ironic thing is I have been a mortgage broker for 25 years, and I have never lost a loan to a customer for disclosing my fees. I like the fact that we are transparent to the customer on everything. So here is my question. Why are there so many different rules for mortgages? Wouldn’t it be better to have one set of rules for all mortgage loans? This would make the process so easy and the consumer would be able to go from broker to bank and broker and get the same information. The government is spending millions of dollars to make three different programs work, when if they just had one set of rules for everyone, it would be so simple. Imagine having every company on the same page and the forms we send out would
be so easy to understand because everyone is the same. Would this really change the way we do business? I don’t think so. I think that audits would be easier, disclosures would be simpler and understandable, and there would be no confusion as to what the customer is looking at of getting. After all, this is what we are all about, making it easier for the consumer to understand the largest transaction of their lifetime. That is what the goal should be at this time. And as far as licensing ALL mortgage originators, this is a must. Make everyone who works in the business have a license. Why are we only going half way by only a section of the business has a license? I hear the critics now basically saying that it would cost too much. All current brokers and non-depositories are licensed and we all paid to take our education, fingerprints, background checks, take a national and state test and send our state their credit report. Why isn’t good enough for the rest of “Mortgage Land?” If the CFPB and those in government really want to make changes and clean up these problems, they need to make the mortgage business transparent and make everything the same. Then, there would be no misunderstandings, no picking on one sector of the business to make them do this while the other sector does that. As I said before, when a consumer is looking for a mortgage, it would be easier for them to know that all originators are the same and what
they are looking at from Company A is the same as what Company B has to offer. You can still have your differences from state to state, and from conventional to FHA, to VA and what types of loans you can do, but the documentation and disclosures would all have the same criteria, and each originator would have the same credentials as being licensed and the consumer would be able to better understand what information that they are getting for their loan and to be able to compare the programs. I think that this is the right way to go! As a final note, NAMB is participating in the Ultimate Mortgage Expo in Atlantic City, N.J. from June 9-11. This marks another great opportunity to get out and see some great speakers, network with your peers, get some education and become more knowledgeable about the industry. Come and join your fellow originators in this outstanding event. And this just in … the 2013 NAMB National Conference is set for SaturdayMonday, Oct. 19-21 in Las Vegas at Harrah’s. We have moved to this hotel this year and it really looks to be better than last year. So mark this date on your calendar. NAMB will be starting to accept reservations very shortly so stay tuned. Sincerely,
Donald J. Frommeyer, CRMS, President NAMB—The Association of Mortgage Professionals
I Signed What? By John Councilman, CMC, CRMS One day, you may be asking yourself that question. I’ve noticed the contracts we are being asked to sign are what one lawyer once described to me as “frying pan” contracts. I think he meant that if you jumped out, you landed in the fire. Either way, you got burned. You may be signing an employment agreement, a branch agreement, a correspondent agreement or a broker agreement. If you didn’t draw up the contract or have your attorney draw it you can be certain the terms aren’t in your favor. As an employee, you may be asked to
sign a contract that you will never compete with your new employer. You may be prohibited from calling on the people with whom you have long-standing relationships. It will be very difficult to move to a better company or secure better working conditions. Hiring a lawyer is an expensive proposition for an individual. Be careful before signing an employment contract. I can remember when branches first started to become popular. I was called upon to be an expert witness in a lawsuit between a lender and a branch. The lender stopped paying the branch and its expenses as called for in the agreement. The lender claimed they had never authorized the people the branch hired or the commission split given to the originators. The contract said that the lender had
to approve all contacts and the loans and employees belonged to the lender. They could terminate the contract at any time. Things dragged on for several years until the lender started having financial troubles. I don’t think the branch ever got any money. Lenders have become must more sophisticated since those days. The contracts I have seen require the “branch,” which had been an independent business, to “sell” the entire operation to the lender. There is very little freedom after that. Every decision is made by the lender. This is very difficult for entrepreneurs who are used to making the decisions. Many of these contracts make the originators and branch employees “at will” employees. That means they can terminate any
employee at any time for any reason. The lender retains the branch, even if the branch manager is terminated. I know of one instance where the lender decided to consolidate two branches. It didn’t make economic sense, but that is what they decided to do. They let the good processors go and kept the cheaper, less talented ones. The originators didn’t want to commute 20 miles and left one by one and found new employment. What had been a very profitable independent business became a valueless, empty shell. Perhaps the area that is of most concern is the evolution of the correspondent or broker agreement. The days are gone when people unloaded junk on Wall Street with no recourse. We operate in a strange business. A company can produce
asking brokers who had originated loans for failed banks to pay for the losses on loans the banks had made. They particularly singled out stated-income loans. Nearly every broker agreement contained a buyback agreement if the file contained fraud, whether or not the broker was aware of it. I have heard many brokers say they don’t even bother to read these agree-
ments. That may be fine if you have nothing to lose. Unless you view your business as a short-term proposition, you may want to pay close attention to what you are signing. It may be that many brokers do not understand the legalese contained in the contracts. I suspect the majority simply want to make a living and will sign anything. That is a sad commentary on how desperate people have become to
make a living. It would even sadder to see them lose everything they have worked for. John Councilman, CMC, CRMS is NAMB vice president and FHA Committee Chair, and president of AMC Mortgage Corporation. He may be reached by phone at (239) 267-2400 or e-mail. email@example.com.
n Kansas Mortgage Professional Magazine n MAY 2013
$1 billion worth of loans with a net worth of only a few million. It only takes a few bad loans or buybacks to erode that equity. One small event such as a spike in FHA delinquencies, a mistake or a regulatory finding, can cause your warehouse lender to cut you off. If that happens, you are out of business in days or hours. Many of these warehouse agreements contain personal guarantees. I have seen people who were flying high one day financially ruined the next day. One person I knew committed suicide. Correspondents are expected to buy the loan back for virtually any reason. If you don’t, your investor will cut you off. If you are dealing with Fannie Mae or Freddie Mac, they may stop purchasing your loans. It doesn’t matter if you think you are right or perhaps you are right. If you cannot sell your loans, you are toast. The most curious agreements I see are today’s broker agreements. Most broker companies have a net worth that is less than $50,000. Some are much lower. Yet, we now see the same or similar agreement for brokers as we see for correspondents. I see broker shops with a net worth of $10,000 agreeing to buy back loans that may be in the $400,000 range … that is insane. Lenders say Fannie Mae, Freddie Mac and bank regulators require them to have such clauses. The contract of one of the largest wholesale lenders calls for buybacks for any reason. It is in their sole discretion to require the broker to repurchase the loan or indemnify them. Perhaps they just didn’t like the loan or maybe the borrower lost his job after a year. Like many other contracts I have seen, even if the lender made a mistake or error, the originator is liable to buy back the loan. I refused to sign their agreement, but have a friend who signed up who said it was too expensive to pay $600 per month for a compliance contract. Is this really what this wholesale lender wants, to sign up brokers with little to lose? A few wholesale lenders are now including personal guarantees in their agreements. I suppose they will try to grab your bank accounts or sell off your car or your house. What is so silly is that anyone who has substantial assets will shy away from these agreements while those with nothing to lose will sign them. The lenders have no idea whether the person making the guarantee is a pauper or a millionaire. It is likely that conscientious, high-quality originators will select other lenders to do business with. Although there are not a huge number of buybacks for brokers at this time, these contracts are sometimes enforced many years later. Not long ago, the Federal Deposit Insurance Corporation (FDIC) was
Client Preeminence in Wholesale Lending By Sharon Bitz
Do you wish to rise? Begin by descending. You plan a tower that will pierce the clouds? Lay first the foundation of humility.—Saint Augustine
MAY 2013 n Kansas Mortgage Professional Magazine n
Success in business is wholly dependent on the ability to solve a problem or to make your partners’ lives easier. In building a business many will miss the key point and in so doing, plant the seeds of their own failure. The point, of course, is to serve your clients by providing goods or services that they need and want. WCS Wholesale is retooling its foundation to build its business and to ensure that it’s not missing the point. WCS Lending is an independent, financially strong, mid-tier mortgage lender. Our wholesale business has the corporate DNA and proven management capability to be successful, yet we know we fail if we don’t meet the basic requirement of “client preeminence.” Client preeminence is a comprehensive orientation to put the needs of our originating partners first in every aspect of our business. What does this foundation look like? The first building block of our client-oriented business is listening. Before we began growing our business we interviewed dozens of successful brokers to get their feedback on the characteristics of the best wholesale lenders and the shortcomings of others. We have asked brokers: How is wholesale mortgage lending best done? Where must we excel to win and maintain broker loyalty? What areas of friction exist in the process? How can we maintain an open dialogue so that we can constantly adjust to your assessment of our work? As an example, I recently sat in on an originator roundtable at a CMBA convention where the originators were stressing a need for lenders to accommodate their clients prequal’s (TBD’s). Reaching out to the originating community to determine their needs is a strategy that will set WCS apart from the competition. After listening, we’ve come up with a strategy to serve the prequal need of the originating community. One consistent comment we received was that many lenders’ communications are unclear. We have therefore made it a priority to ensure all our written communications are vetted, clear, consistent, and concise. Clients can feel confident that all changes will be communicated in a timely fashion, keeping them informed and up to date. The second building block of a client-oriented business is making life easier for the client. If we truly put our broker’s needs first, they will find it easier to do their job. Since there are many pieces to the puzzle of originating, underwriting and closing mortgage loans, there are numerous places in which the process can be improved. We are committed to simplifying the process and developing tools that will make working with us the smoothest choice available. As a national company with fulfillment on both coasts, we exercise best practices based on decades of mortgage lending experience in order to guarantee streamlined operations. The third and final building block of a client-oriented business is to define our success by the success of our clients. In mortgage origination, production volume and quality is the ultimate measure of success, along with satisfied customers who will recommend you. Therefore; we will measure our success by the growth in production volume of our originating partners. Our task then is to provide staffing that supports our customer’s volume, and service that is timely and efficient. Making mortgage originators successful and improving the quality of their lives is our business. Together as partners we will “rise”. Sharon Bitz is the national head of wholesale lending for WCS Lending, one of the largest privately-held mortgage banks in the U.S. that has been recognized as an Inc. 5000 honoree for the fourth consecutive year. WCS, which is licensed in 49 states, has offices in Florida, New York, California, Michigan, Maryland, Delaware, Ohio and Hawaii and generates $2 billionplus in loans annually. She may be reached by phone at (916) 996-1620.
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New FHFA Initiative Assists Delinquent Borrowers With Avoiding Foreclosure The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac will offer a new, simplified loan modification initiative to minimize losses and to help troubled borrowers avoid foreclosure and stay in their homes. Beginning July 1, servicers will be required to offer eligible borrowers who are at least 90 days delinquent on their mortgage an easy way to lower their monthly payments and modify their mortgage without requiring financial or hardship documentation. The new Streamlined Modification Initiative eliminates the administrative barriers associated with document collection and evaluation. Eligible borrowers must demonstrate a willingness and ability to pay by making three on-time trial payments, after which the mortgage will be permanently modified. Homeowners are encouraged to continue working with their servicer to evaluate all of their foreclosure prevention options. Documenting income and financial hardship could result in a modification with additional savings for the borrower. “The Streamlined Modification Initiative adds to the suite of home retention tools offered by Fannie Mae and Freddie Mac,” said FHFA Acting Director Edward J. DeMarco. “This new option gives delinquent borrowers another path to avoid foreclosure. We will still encourage such borrowers to provide documentation to support other modification options that would likely result in additional borrower savings.”
Homes Near Public Transportation See Rise in Value “Location, location, location near public transportation” may be the new real-estate mantra according to a new study released by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR). Data in the study reveals that during the last recession, residential property values performed 42 percent better on average if they were located near public transportation with highfrequency service. “When homes are located near public transportation, they are among the most valuable and desirable in the area,” said
APTA President and CEO Michael Melaniphy. “This study shows that consumers are choosing neighborhoods with high-frequency public transportation because it provides access to up to five times as many jobs per square mile as compared to other areas in a given region. Other attractive amenities in these neighborhoods include lower transportation costs, walkable areas and robust transportation choices.” “Higher home values reflect greater market demand for areas near public transportation,” said NAR Chief Economist Lawrence Yun. “Transportation plays an important role in real estate and housing decisions, and the data suggests that residential real-estate near public transit will remain attractive to buyers going forward. A sound transportation system not only benefits individual property owners, but also creates the foundation for a community’s long-term economic wellbeing.” The study, “The New Real-Estate Mantra: Location near Public Transportation,” investigates how well residential properties located in a half-mile proximity to high-frequency public transportation or in the “public transit shed” have performed in holding their value during the recession compared to other properties in a given region. While residential property values declined substantially between 2006 to 2011, properties close to public transit showed significantly stronger resiliency. The following are a few examples from the study: In Boston, residential property in the rapid transit area outperformed other properties in the region by an incredible 129 percent. In the Chicago public transit area home values performed 30 percent better than the region; in San Francisco, 37 percent; Minneapolis-St Paul, 48 percent; and in Phoenix 37 percent.
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: firstname.lastname@example.org Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.
Correction … Due to a production error on page 45 of the April 2013 issue of National Mortgage Professional Magazine, the incorrect pull quote appeared with the article by Les Acree in his article, “Are Leaders Born or Can Some one be Taught to Lead?” The correct quote that should have appeared is as follows: “I do believe that leaders know, at an early age, that they did not come into this world to sit on the bench … they came to play.” The quote that appeared in the April 2013 issue should be attributed to Tommy A. Duncan, CMT from his March 2013 article, also on page 45, “Quality Control Trends Positively Impacting the Market.”
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n Kansas Mortgage Professional Magazine n MAY 2013
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MAY 2013 n Kansas Mortgage Professional Magazine n
The Great Recession Ends, but Young Professionals Remain Elusive Learn how borrowing lessons from the world of social media can help bring them back By Chad Jampedro In the thralls of the go-go 1990s, young professionals seemed to have it all. Flush with college degrees and the cash from good-paying jobs, the generation not only embraced the American Dream—they built it bigger and better than any previous generation had before. Not content with the quaint Cape Cods and split-level colonials inhabited by their parents and grandparents, the group sprung for McMansions in sprawling suburbs or sophisticated condos in the city. Then the housing market crashed. In one fell swoop, the Great Recession dashed the hopes of millions of would-be first-time homebuyers. As businesses dealt with the blow from constricted budgets, some college grads were forced to forego a promising career for low-paying service jobs. Others had no choice but to move in with their parents just to get by. Thousands of young professionals
could scarcely pay their rent, let alone invest in a mortgage. To make matters worse, the constant coverage about predatory lenders tarnished the reputation of the mortgage industry. The reports swayed even those young professionals who managed to escape the woes of the downturn. Despite their footing, the group consistently turned to more malleable living options, like renting and rooming. Today, the housing industry is experiencing a venerable recovery. But, the young professional remains elusive. It’s no coincidence that the recession happened at the same time that social media, and other digital communication channels, began to take the world by storm. Outside of their novel features, perhaps the biggest lure of these new mediums was their inherent sense of transparency—a facet that had long been lost on the nation’s marketers in the decade’s prior. Social media allows its users to “get behind the Man” and get right to the point. It also provides a constant stream
of information—social channels are literally built so users never miss a thing. The way that information is presented is engaging, simple and straightforward. When its not, users can instantly provide feedback and demand a response. Many mortgage companies are “on” social media. But, this isn’t a column about social media or digital marketing. It is about how mortgage companies can use the lessons learned from social media companies to attract young professionals back to the housing market.
Understanding the social shift The numbers speak for themselves. First-time homeownership is at an alltime low. According to a fall 2012 survey conducted by Campbell/Inside Mortgage Finance, the first time homebuyer share of home purchases fell to 34.7 percent. To understand why young professionals are eschewing homeownership, mortgage professionals must first try to
understand the social shift that has occurred in this group. For example, young professionals are more likely to feel “tied down” rather than liberated by owning a home. Studies also show they are waiting longer to “settle down,” get married or start a family. Others are simply “turned off” to homeownership by what happened during the housing crisis. While rising home prices and tighter lending is certainly to blame, mortgage lenders possess the capabilities to reel in a greater share of these customers. “How so,” you may ask? Consider this … despite could-be homebuyers’ hesitations, a 2011 Pew Research study on homeownership reported more than 80 percent of current renters expressed wanting to own a home and agreed that “buying a home is the best longterm investment a person can make.” Young professionals want to buy homes. Mortgage lenders can make that happen. Yet, first time homeownership is at an all-time low. There’s a disconnect occurring here, and it is up
to mortgage professionals to fix it. So, how does the mortgage professional heal the wounds left behind by the recession? It all comes down to trust.
following up with a client, or by anticipating their needs. In the mortgage industry, that also means reminding young professionals about the importance of homeownership. This group is reachable, but mortgage professionals have to be willing to go where young professionals goâ€” mentally and digitally. Chad Jampedro is president of GSF Mortgage Corporation. With more than 20 years of experience, GSF Mortgage has embraced the next generation of homeowners with its GOGSF brand, continuing its dedication to flexible and transparent lending. He may be reached by phone at (262) 373-0790.
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n Kansas Mortgage Professional Magazine n MAY 2013
l Be an information generator: Young professionals demand a constant stream of informationâ€”it puts them at ease. Information should be presented clearly and simply, and available in a variety of formats, including print, on the Web, on social
want the truthâ€”not fluff. Clouding promotional materials with empty promises and marketing jargon isnâ€™t going to result in sales. Give it to them straight. l Embrace technology: Young professionals often equate a trustworthy business with a tech-savvy one. An outdated Web site or a site with slow page load time may turn off a potential customer. A small or ineffective digital footprint makes the young professionals of today wonder if a business is sketchy or out of touch. l Show your value: If Facebookâ€™s $40 billion IPO was any indication, a companyâ€™s value is about more than just money. Prove your worth by providing excellent customer service,
Social media companies have grown instep with the millennial generation, so itâ€™s not hard to understand why young professionals prefer the digital landscape. This is a generation that was raised on the Internet and technological expansion. The rise of technology has brought down the walls of hierarchy, in many ways, and social media found a way to capitalize on that. As virtual as the world of social media may appear, it works by building relationshipsâ€”online and offline. In the social world, the number of users matters, but it is the effectiveness of those relationships, often corroborated by distinguishing the levels of â€œuser engagement,â€? that bring a user back to the business, time and time again. User engagement is about a lot more than â€œLikes.â€? Itâ€™s about the information sharing, the commenting, and the â€œIRLâ€? (in real life) word-of-mouth buzz. In the mortgage industry, we can compare â€œLikesâ€? to leads. At some point, we want those â€œthumbs upâ€? to turn into conversions, and eventually, into real-life customers. At its most basic level, social media really isnâ€™t all that revolutionary. But, what sets social media companies apart from traditional corporations is that they not only tune in to their usersâ€™ habits and wants, but they listen to their needs. Then, they deliver and delivery fast. Social media communication cuts through the â€œred tapeâ€? and bureaucracy that many companies refuse to let go of. In many cases, users are receiving information from and directly communicating with the higher ups of an organization. Then, they provide the platform for users to speak for themselves. If a company is lucky, users will also speak on behalf of the business, and create a buzz. Embedding interactivity and providing personal access to superiors within a company isnâ€™t a new concept. Itâ€™s the very lifeblood of old time Ma and Pop shop business models, and other successful ventures. But, it is a notion that many industries have lost along the way. Mortgage companies cannot compete with the broad appeal of social media companies, like Facebook or Twitter. But, they can heed some lessons from this group of successful marketers. There are reasons why social media channels make young professionals tick. Here are some tips to get you started:
media and on mobile and tablets. l Mix-it up: Social feeds are popular because they contain a variety of content. Embed videos, images, glossaries, audio programs, news articles, industry updates and blogs on company Web sites and on social channels. l Respond to feedback: Avoid automated voice systems and placing customers on hold. Customers should have direct phone access to the business, as well as the tools to reach out to mortgage pros via social media, email, commenting boxes or online chat. Mortgage professionals should do their best to respond to customers within 24 hours. l Be transparent: Young professionals
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.
DocMagic Achieves 100 Percent Uptime
MAY 2013 n Kansas Mortgage Professional Magazine n
DocMagic Inc. has announced that the company has maintained a perfect 100 percent uptime record for the past 120 days. DocMagic provides system status information on its Web site in real time. Over the past 12 months, DocMagic has maintained an unparalleled 99.989 percent uptime record. That period of time includes the company’s move to their new location and switch-over to the new state-of- the-art technology center resulting in the new 100 percent uptime record. “Some service providers and IT executives will say that 100 percent uptime is an impossible standard,” said Dominic Iannitti, CEO of DocMagic. “I can assure you that it is possible and meeting this standard involves investment in infrastructure, superior staff training, constant monitoring and an unwavering commitment to the task.” When it comes to measuring online service reliability, the terms uptime and availability are often used interchangeably. However, they are not always the same thing. Often providers that measure uptime only check to see if a server is responding to pings on the network. In some cases, a server may be “up” but unable to perform the service for which it was designed.
GSF Partners With TRUSTe Privacy Management Firm GSF Mortgage has announced that it has joined forces with global privacy management solutions provider, TRUSTe. TRUSTe enables multinational companies to safely and efficiently handle the customer data powering their online businesses including advertising, cloud services, mobile applications and websites. The online consumer protection company works with several recognizable companies, including Apple, Disney, HP and eBay.
As more and more companies move their businesses online including GSF, the company recognized the need to ensure Web user privacy, especially in the home mortgage lending space. While GSF, which offers a variety of mortgage tools and online lending options on its Web site at www.gogsf.com, has always practiced secure lending practices, the partnership with TRUSTe adds yet another layer of protection against the breach of privacy. Customers can rest assured that their privacy and data is secure with GSF, as all online transactions conducted through the company will now be monitored by the third-party, TRUSTe. “Our mission is—and has always been to put our customers at ease throughout the mortgage lending process, whether it’s through our low rates, flexible lending options, or through our online tools,” said GSF President Chad Jampedro. “We are extremely excited to partner with TRUSTe, a step that we feel will help us continue our legacy as a transparent and trustworthy home mortgage provider.”
WCS Lending Revamps Its Wholesale Lending Division WCS Lending has revamped its wholesale lending division as part of its plan to significantly increase the company’s loan volume and customer base throughout 2013 and 2014. The re-introduction of WCS’ wholesale program includes expanded program offerings, improved pricing, and redesigned infrastructure, with the ultimate goal of establishing itself as a vital part of the mainstream wholesale mortgage market and becoming the most trusted partner for wholesale lending within the origination community. WCS’ wholesale division’s new prod-
uct line includes a wider range of mortgage products. In addition to conventional, FHA and VA loans, WCS is one of the few wholesale lenders to offer USDA loans. The company will also be adding portfolio jumbo loans to its offerings within the next several weeks. “We’ve got a plan that takes great care of our loyal, longstanding customers, while allowing us to quickly expand into more markets and still deliver on our trademark quality, service and speed,” said Rouvaun Walker, WCS’ wholesale divisional manager in California. “I think the mortgage broker community is going to be shocked at how much of a difference it makes when a wholesale lender invests in the best technology, hires more knowledgeable and seasoned staff, and offers a full suite of loan products.” As part of its growth initiative, WCS Lending has reinforced the division’s infrastructure by creating the policies and workflow that will support exponential growth and implementing new loan origination and accounting software. Industry veterans Sharon Bitz, the company’s national head of wholesale lending who has 35 years of experience, and California divisional manager Walker, who has 22 years of industry experience, are guiding the expansion of WCS’ wholesale division. “There is a demand for the products, service and expertise WCS provides,” said Bitz. “Loan originators need wholesale lenders that function like true partners; otherwise they can end up losing a lot of time, or even entire transactions. All of the changes we’ve made have enhanced our ability to function as a true partner to the origination community. We’re looking forward to the growth we have planned for the next two years.”
United States Appraisals Partners With Collateral Risk Network United States Appraisals has announced that it has joined the Collateral Risk Network (CRN). Composed of chief appraisers, collateral risk managers, regulators and valuation experts, CRN is focused on resolving the risk and compliance challenges facing the collateral risk profession. With over 400 members represented by leading AMCs, lending institutions, Wall Street, Fannie Mae, Freddie Mac, The Veteran’s Administration, the Federal Housing Administration and appraisers, CRN engages all stakeholders in open dialogue to find solutions to industry issues. “We are pleased to join an organization that utilizes the diverse backgrounds of its members for the common good of the industry,” said Aaron Fowler, president of United States Appraisals. “Obviously, risk and compliance are hot topics in the mortgage industry. As we grow, we wanted to ensure our involvement in the discussions that shape our industry. We look forward to working with our peers and industry partners to identify and resolve these issues.” Joan Trice, CRN founder and managing director, said, “We welcome United States Appraisals to the CRN group. We are always excited to have a growing organization bring a fresh set of ideas and a new perspective to the table.”
First Guaranty Mortgage Moves Into Larger Facility First Guaranty Mortgage Corporation (FGMC) has relocated its national headquarters to a larger facility in the Tysons Corner neighborhood of McLean, Va. FGMC is a
continued on page 43
n Kansas Mortgage Professional Magazine n MAY 2013
The Three Cs of Mortgage Success (Part I)
So you want to create maximum growth acceleration for your company … but where do you start?
By Erik Janeczko
MAY 2013 n Kansas Mortgage Professional Magazine n
The most common question we hear in coaching is “how do I get more business?” But there are always multiple layers to consider before answering. The simple answer is get more leads and convert better, but often that is easier said than done. Beyond that, what if you have a capacity problem?, In reality, we have found it better to ask first, “Are you ready for more business?” Think about this for a moment, what is the role of a loan originator in your organization? We find in most organizations, that originators wear three separate hats: Lead generation, that’s the creation phase; sales, which is a function of lead capture and conversion; and then the third phase is completion, but do you really have the capacity for more business? To find out, we need to dig a bit deeper, and that is exactly what we intend to do in this series over the next three issues … You see, the mortgage industry is no different than any other professional practice, there’s really only three critical focus areas that impact production growth. We call them the “Three Cs of Success: Create, Capture and Completion.” 1) Create is about Getting more leads; 2) Capture is about converting more leads; and 3) Completion is about your ability (or capacity) to handle the volume you create and capture, with the desired level of service quality. This last one is probably the most subtle and difficult one to manage, as it is often the silent killer. Think about the last time you received poor service? How many people did you tell? The crit-
ical failure often is, if you don’t make ly have the skill and ability to generate sure you have the capacity to service the more lead volume than your support deals that you generate, the first two Cs teams can handle, you most certainly are totally wasted effort. will reach a capacity ceiling. Think The other big challenge to effective about this for a moment, why is it that growth planning and training imple- the average loan officer in the United mentation is not knowing in what order States closes four loans a month or less? to work on these three areas. For exam- Now this may be counterintuitive to a ple, in our coaching often what hap- lot of managers, and I’m probably irripens is that we work from three back to tating some of you right now, but the one. If an originator, branch or region is practical reality is that the primary reaseeing significant volatility to their pro- son most originators in the U.S. average duction, with widely ranging peaks and less than four loans per month is valleys month by month, then most because they’re doing three jobs, and often we first have to expand most of the time, not doing them capacity. Before we then can very well. In essence, they improve conversion, and have a lead creation job; “… our job as all this must happen they have a lead capleadership coaches, before it is even pruture job, and they have dent to invest time or a lead completion trainers and originators money on creating job—the last of these is to keep a constant eye three consuming the more leads. So the fundamentals of any majority of their time. on capacity and build good sales developThink about it from for it before it ment program should this perspective … in arrives.” focus on these three crititerms of the highest paid cal focus areas and one must extremely skilled processors, first assess the needs of the organiwhat do they typically earn per year zation and individuals before offering in your market? I’m not going to go into any training. Then, once it is clear what specifics here, but think about it, what the real needs of the organization are, do the rock star processors in your area develop programming organized into make a month? For most areas of the the proper sequence for the organiza- country, including the high index martion. For the purpose of this series, we kets, you’re talking probably an income are going to address these three areas scale that tops out at $45 or $50 an on the order they most often need to be hour for an exceptional processor. Now addressed which is Completion, compare that to the value of the origiConversion and Creation. nators 10 or so hours over six to eight weeks to solidify a real estate agent or Completion is financial planner partnership that is about capacity worth six or more deals annually. How Often in our coaching and training much revenue does your company work, we find that marketing and sales, make on six deals a year? For most of though needing attention, are not the our coaching clients, it is in excess of most urgent issue limiting an organiza- $4,000 per loan (company gross revtions growth. If your originators are enue). So, every hour an originator focused and professional then they like- spends chasing conditions and mas-
saging loans through underwriting, is an hour they are not spending creating new business, which carries a heavy opportunity cost. How much money does that hour potentially cost the company? Just look at this rough comparison: If the company average is $4,000 in gross profit per loan, and it takes 10 or so hours for that originator to create a relationship worth six deals a year, that’s $24,000 annually in revenue or $2,400 per hour activity, and an opportunity cost of over $2,300 per hour. Armed with this information, how fast should we be working to effectively create additional support capacity that grows at the same pace (or even faster than) the growth pace of our Creation and Capture programs? If we truly understand this issue, then our job as leadership coaches, trainers and originators is to keep a constant eye on capacity and build for it before it arrives. To do this, there are two primary solutions we must implement: 1) Help the originators get consistent focused and efficient; and 2) Build capacity by building the right team at the right time. Through our coaching work, we have identified that the first part of creating capacity is to build the focus and efficiency skills of the originator. This includes both basic time management training, as well as sales discipline through business planning and performance metrics. By training and reinforcing success habits with your team, you will improve capacity by helping the originator recognize that their highest and best use is lead creation and conversion, and that you will get them producing more
Erik Janeczko is head coach/speak with Maximum Acceleration, and is also president of the Missouri Association of Mortgage Professionals (MAMP), a state affiliate of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (573) 298-4237, ext. 101 or e-mail firstname.lastname@example.org.
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n Kansas Mortgage Professional Magazine n MAY 2013
Capacity management becomes every bit as important, if not more important, in some cases than creation or conversion. Skill development training, staffing, recruiting and integrated team communication training systems all become a vital part of an effective and efficiently-growing practice, company or organization. So there you have it. If you’re considering sales training or a structured development program, or are considering a rapid growth and development process, first start by assessing which of the three areas is your biggest need. Are you generating plenty of leads, but your conversion rate shows limited lead pull-through? Then you need sales training. If your originators can convert like mad, but are complaining about lead volume, then you need marketing and business development training first. If your marketing is generating plenty of leads and your originators are converting effectively, but you’re still not at the volume that you think you should be, or you’re starting to see massive peaks and valleys in your organization with individual originators, then start looking at the systems and processes that those originators are using. You need to see what their support staff and teams would like to build and if they have the capacity to efficiently pull that volume through all the way to closing. Once you have your capacity issues fixed, you can circle back around to marketing and sales training. At all three levels, Creation, Capture & Completion, identifying where the biggest opportunities for growth are, then strategically resolving those challenges is your best bet for creating effective and efficient growth. Through coaching, we have refined this model with the thousands of originators, managers and sales teams that have grown through our training programs. The single most important lesson we have learned through the years is that we must always follow a solutions-oriented strategic planning and growth model. We are most effective by starting with objective assessment, moving on to action planning, and finally, implementation. Looking at your organization’s growth, follow the model of studying what are the challenges, and then determine the best practices and strategies to apply at each phase of the process that will yield the greatest amount of growth in the least amount of time. Stay tuned to next month’s issue of this series where we will go deeper into the best methods for Capturing leads.
results in less time, by being more focused on those activities. The second part of creating capacity is to build the right support team. By the way, I’m not just saying go out and hire a bunch of entry-level processors and throw bodies at the problem, because that simply does not work. Throwing people into a system-less environment just creates the 3 Cs you don’t want “Confusion, Chaos and Crisis.” The first step is systemize. Get your originators efficient and consistent with the amount of time and energy they’re spending on capacity creation and conversion; efficiently pushing loans through. And then work to recognize the warning signs of pushing the capacity ceiling, and move proactively to hedge against service failures and lost volume. Once the systems are in place and the originator is operating at maximum efficiency, eventually, the volume of business increases beyond the man hours available by any one originator. Think about it from this perspective, how many actual man hours does it take from start to finish on a viable, well-structured, well-documented loan? Opinions range on this issue, but in our experiences, the typical sales cycle, from first contact through to 30 days after closing, is consistently around 50 to 60 man hours per loan. Another way to recognize this in your own organization is do the math. At what level does your team begin to experience burnout from being overworked and massive peaks and valleys begin to appear? If your average originator, with a shared processor, is maxing out at about five loans per month, this indicates that, based on five files, which equals 40 hours per file. Add to that the time a processor spends on each file and it is a bit easier to see why your growth is volatile. In most organizations, top originators will reach their first ceiling of capacity somewhere around what will average out to six or seven loans per month. With the support of a shared processor who is handling a pipeline of 80-100 loans and the processor’s job is mostly just pushing that file through underwriting efficiently. Unfortunately, most originators won’t be doing seven or eight loans per month consistently. They’re going to be doing 10-12 loans one month and two or three the following month. So the primary first indicator that you have a capacity problem is watching for volatility in the pipeline. If you have originators on your team doing massive peaks and valleys, that’s probably one of the single best indicators that you have a capacity challenge in your organization. The next thing that we spend the majority of our time working on with our coaching members is helping them grow and build their businesses, taking loan officers from five or six deals each month to 10-12, 18-20, and 20-plus to whatever level they want.
Secrets to More Closings: Stages Three to Five of the Sales Funnel (Part II)
By Jean LeBlanc
MAY 2013 n Kansas Mortgage Professional Magazine n
Last month, we began looking at the initial stages that every one of your prospects goes through as they strike up a relationship with you, from the tire-kicker stage to the Stage Two “Seekers.” This month, we’re exploring what your prospects or clients are looking for in Stages Three through Five, and therefore, what you need to be able to provide to them, in order to keep them moving down the funnel toward closing.
Stage Three: The shoppers Armed with the information they’ve obtained from you (or from another mortgage office), now they’re ready to shop. They’ll compare you to your competitor down the street and to online sources such as bankrate.com, or lowermybills.com. Again, we have learned recently that many borrowers just don’t shop around, but go straight to one company and never look at another. We also learned that price isn’t necessarily the primary deciding factor, but often service is. Lesson for all of us: while we may not be able to compete with the lendingtree.coms of the world, we can compete on service and other factors. That’s why it’s so important to make your customer reviews readily available to shoppers. In this stage, it’s important to know your company’s USP (Unique Selling Proposition), which answers the question, “What makes you unique from the other lenders or brokers?” or “Why should I purchase my loan from you?” Your sales materials, even down to the e-mails you send, should answer this question for prospects in the shopper stage.
Stage Four: The application Your clients are excited. Chances are, they have found their perfect home. Now they’re ready to make this thing happen—and tomorrow isn’t too soon. And you’ve got to burst their bubble—gently. If they’re a first-time buyer, they may have no clue how time-consuming and labyrinth-like the loan process can be. Even if they’re not a newcomer to homeownership, the rules have changed, and they may be required to submit MANY more docs than they did before. This is when you want to provide them with concise information, either on your Web site or handouts, as to what to expect during the app process: Tips on credit, appraisals, gathering their docs, and so on. The more professional materials that you can provide that are simple to read, the more your LOs and your company will look like experts. Finally, you want to continue to sell your company and your LO during this stage, because they may be hearing from other lenders with attractive offers. Be attentive, communicate positively and regularly; show just how good your customer service is. And continue this during Stage Five.
Stage Five: Waiting to close During this stage, a number of elements are outside your control, such as how long underwriting takes, what additional docs are required, whether closing will happen on time, and so on. Most of
the communication that happens here is one-onone; by that I mean, you won’t be handling the client a brochure, but rather communicating personally. For instance, this is a good time to remember some of the things they told you earlier, such as their desire to upgrade the kitchen. Send them links to kitchen upgrade ideas online and a few contractors that they may want to talk with. If they’re moving from outside the area, send them links to events in their new neighborhood. Just keep communicating—positively—with them (to help overcome any negative conversations that you may need to have, such as “Your closing’s going to be delayed”). Now is a good time to ask for referrals as well. An e-mail is timely that says, “Most of my clients are referred to me from others who have worked with me in the past. Do you have any friends or family members who may be looking for a home purchase loan or a refinance loan?” Next month, we will explore the last stage of the funnel … after the close. Too many loan originators stop communicating once they receive their commission check, forgetting that these valuable clients may very well bring you additional income in the future! Jean LeBlanc is director of marketing for Guaranteed Home Mortgage Company. For more marketing tips, download the eBook, 13 Ways to Juice Up Your Marketing in 2013, by going to joinghmc.com and clicking on the eBook offer midway down the page. She may be reached by phone at (914) 696-3400.
n Kansas Mortgage Professional Magazine n MAY 2013
Welcome to the Show! Industry Newcomers Learning From the Past to Create a Positive Lending Future
By Tara R. Nygaard Two days after receiving my mortgage license, I stepped off a plane in D.C. to attend the 2013 NAMB Annual Legislative & Regulatory Conference in March. To this point, my experience in finance consisted of purchasing a home in 2007, working at a bank right out of college and passing my licensing exams. How did one with so little exposure to the mortgage broker business end up in D.C. at a national conference? My husband and I were relocating to Billings, Mont. for his work. I commenced house hunting and called the home loan company that was listed first on my Google search. The broker and I ended up talking for three hours at the first appointment. I sent her my resume to see if she knew of any career opportunities. Her response was, “Have you ever thought about being a loan originator?” and my honest answer was, “No.” That was last December. We never found a house, but I plunged headfirst into the world of the mortgage broker. When I got to the NAMB Legislative Conference D.C., it was apparent to me that I would be one of the youngest attendees at the age of 29. During the conference, I learned the industry was still licking its wounds from the financial meltdown; how new regulations were affecting companies
like my own employer; and I learned how rules and regulations that were coming down the pipeline could even further damage the mortgage industry which I was now part of. The DoddFrank Act and the Consumer Financial Protection Bureau (CFPB) were no longer answers to multiple choice test questions, but now were regulation hurdles to my future success. By far, the most frequent question I received was usually why I decided to begin a career in origination at a tumultuous time like this in the industry, at my age and in the state of Montana. Truth be told, I didn’t have an answer then, a mere 48 hours after being licensed. Since then, I have wrapped up the Wyoming state test, the Uniform State Test and now have a little over a month of industry experience under my belt in originating. My perspective on the economy, the ways of lending and mortgages themselves have been crafted. Today’s young people are driven. One can blame it on energy drinks or designer coffee, but we are. We want to be in control of our income and require intellectual stimulation on a daily basis. When I finished up grad school, there was a moment where I wasn’t sure what to do with a master’s degree in consumer psychology aside from an ad agency or in-house marketing department. Since 2009, each origination has a little psychology built into it while calming the fears of customers. With
today’s mortgage application turned into an investigation into the life of each applicant, it’s easy to build Consumer Behavior 422 into each day. I am not the only member of Generation Y walking the halls of Division Mortgage Group (NMLS Entity #140614). I am one of three, in fact, that Tavell Peete, CRMS, broker/owner of Division Mortgage Group, brought on within a month. She attributes it to the perfect storm between a flexible schedule, challenging industry and the ability to earn as much as you desire (i.e. commission-based comp plans). “Hiring young people ensures the broker’s existence,” said Peete. “They bring new ideas and a fresh perspective to the industry. On the flip side, we, as brokers, can offer all of the perks the younger generation is looking for, such as work-life balance and upward mobility.” With 63 percent of my office under the age of 33, you can bet the office is high-energy and tech savvy with healthy competition among originators. The mortgage industry doesn’t have the sexy allure of ad agencies and fashion icons, but for someone like me with advanced degrees plus professional experience in marketing and advertising, it requires all of the skills I’ve been striving to use. Therefore, my approach to the market is probably very different from someone with 20 years on their resume.
“Young people view the mortgage industry as being in repair,” explained Peete. “They are aware of the meltdown and see an industry they can improve upon. It’s a chance to make a difference in how one of the biggest financial transactions takes place.” I think my motivation and approach are indicative of my generation. I incorporate technology into everything. I aim to be responsive and available to customers outside of the normal office structure. I headed out to D.C. to understand how decisions being made on Capitol Hill trickle down to every customer and loan originator, even out here in Montana. My ambitions go far beyond the standard nine to five workday, but into making the brokerage business beneficial to the customer and subsequently successful, a sentiment echoed by all of my peers thus far. It may be interesting for the wise and the new to share space for a time. We respect what the industry has gone through and aim to learn from the unfortunate events to create a positive lending environment for the next wave of homeowners. Tara R. Nygaard, MA is a loan originator with Division Mortgage Group (NMLS #140614) and a member of NAMB—The Association of Mortgage Professionals. She may be reached by phone at (406) 690-0098 or e-mail email@example.com.
regulatory compliance review FHA Mortgagee Review Board: Administrative Actions By Jonathan Foxx eriodically, I review with you the types of administrative actions taken by the U.S. Department of Housing & Urban Development’s (HUD) Mortgagee Review Board (MRB). The review of the MRB’s published administrative actions should be considered a teaching moment for all FHA approved mortgagees, inasmuch as the MRB is empowered to enforce its administrative sanctions through, among other things, reprimand, probation, suspension or withdrawal of approval and/or underwriting authority, cease-and-desist orders, and civil money penalties. On April 11, HUD published the administrative actions taken by the Mortgagee Review Board (MRB) against certain FHA mortgagees. The period covered in the issuance is Jan. 1, 2012-Sept. 30, 2012. In this article, I provide an outline of the kinds of violations and respective sanctions that the MRB recently sustained.
A word to the wise
Administrative actions1 Violation: Failed to notify the Department that it was the subject of multiple state regulatory actions and sanctions, and submitted false certifications to HUD in con-
Violation: Failed to obtain adequate documentation of the income used to qualify a borrower, failed to resolve discrepancies and/or conflicting information before submitting loans for FHA mortgage approval, and failed to ensure mortgagors were not charged fees that were excessive and/or unreasonable for the services performed. Action: Settlement Agreement that required civil money penalties in the amount of $17,000, to indemnify HUD/FHA for its losses with respect to two FHA-insured loans, and to refund borrowers for excessive origination fees. Violation: Submitted or caused to be submitted false information to HUD in relation to 63 mortgagee record changes, failed to reconcile its portfolio data and allowed HUD records to incorrectly identify the mortgagee as the holder of 97 FHA-insured mortgage loans, and submitted false information to HUD on 133 claims for FHA
Violation: Employed or retained a debarred director and made three false certifications to HUD on the Yearly Verification Report and annual recertification submissions to HUD for 2009, 2010 and 2011. Action: Civil money penalty in the amount of $59,000. Violation: Failed to engage in loss mitigation and/or retain required documentation in its loan servicing files with respect to its loss mitigation decisions. Action: Civil money penalty in the amount of $32,500. Violation: Failed to adopt and maintain a quality control plan and management reports, failed to implement a quality control plan, allowed non-employees and non W-2 employees to originate FHA loans, and failed to require the loan interviewer to sign page 4 of the initial Uniform Residential Loan Application, Fannie Mae Form 1003, and page 1 of the initial Form HUD 92900-A. Action: Civil money penalty in the amount of $12,000. Violation: Disseminated a misrepresentative or misleading advertisement or business solicitation to the public. Action: Probation for a period of six months and required to pay a civil money penalty in the amount of $7,500. Violation: Failed to maintain a quality control plan, failed to perform quality control functions, failed to service FHA-insured loans in accordance
with HUD’s loss mitigation requirements, and failed to timely provide the HUD-PA-426 pamphlet to delinquent borrowers. Action: Civil money penalty in the amount of $23,300, to require all of its mortgage servicing staff and supervisors to complete, within six months, HUD’s twelve-module electronic training program on loss mitigation and servicing systems, and to submit to HUD and implement a written quality control plan that complies with HUD requirements. Violation: Failed to notify HUD/FHA that the mortgagee was involuntarily dissolved by the state of Illinois and, the fiscal years ending March 31, 2009, March 31, 2010 and March 31, 2011, failed to timely submit its Yearly Verification Report/Elec-tronic Annual Certification forms, failed to pay the annual recertification fees and failed to submit acceptable audited financial statements. Action: Notice of Administrative Action withdrawing the FHA approval for a period of one year. Violation: Failed either to timely remit monthly mortgage insurance premiums to HUD/FHA or to notify HUD/FHA within fifteen calendar days of the termination of the contract of mortgage insurance, the sale of the mortgage, or both on 1,373 loans. Action: Civil money penalty in the amount of $85,150. Violation: Failed to engage in loss mitigation, failed to service FHA loans in accordance with HUD requirements, and failed to offer property disposition options to the mortgagors. Action: Civil money penalty in the amount of $37,000, and pay $92,677 to indemnify HUD for its losses with respect to one FHA loan, to indemnify continued on page 34
n Kansas Mortgage Professional Magazine n MAY 2013
Rule of thumb rule The MRB is not sympathetic to a mortgagee that violates HUD/FHA requirements which are, or are expected to be, within the mortgagee’s control. Violations that are not, or not expected to be, in the mortgagee’s control provide the MRB with a more nuanced basis upon which to provide some leniency.
Violation: Failed to perform quality control functions in compliance with HUD/FHA requirements, failed to meet the requirements for participation in the FHA mortgage insurance program, failed to ensure the correct mortgagee identification number was used when originating FHA-insured mortgage loans, failed to adequately document the source of and/or adequacy of funds used for closing, failed to correctly calculate and document the mortgagor’s income, failed to verify the stability of the mortgagor’s income, failed to ensure the mortgagor was eligible for an FHA-insured mortgage loan, failed to ensure the property met HUD’s eligibility requirements, failed to comply with TOTAL Scorecard requirements, failed to comply with HUD’s property flipping requirements, failed to provide construction documents required for property eligibility and/or high ratio financing resulting in over-insured mortgages, failed to ensure that the maximum mortgage amount was correctly calculated, resulting in over-insured mortgages, failed to ensure that data submitted to HUD systems was accurate, and charged mortgagors unallowable fees. Action: Notice of Administrative Action immediately and permanently withdrawing the FHA approval.
insurance benefits and, in 90 instances, claimed benefits for ineligible holders of record. Action: Settlement Agreement that, among other things, required a civil money penalty in the amount of $1.2 million and to complete mortgage record changes to facilitate the payment of certain FHA insurance claims.
In representing clients before the MRB, we can vouch for the exhaustive due diligence that is virtually mandated, the considerable costs involved, the experienced legal counsel and requisite regulatory compliance expertise that is needed, and the significant adverse impact on an FHA lender’s ability to conduct or even continue in business. It’s easy to get lulled into a sense of false confidence by thinking that some violations are minor. But if the MRB gets involved, those minor violations will become a part of the causes for administrative action, and even in some instances the proximate cause of the administrative action. Nothing should be considered a “minor” violation, when originating HUD/FHA mortgage loans. It is instructive to note the causes for the administrative action brought against an FHA-approved mortgagee. Ignorance is a futile defense, when it comes to the causes that can affirmatively contribute to disciplinary action.
nection with its annual renewal of eligibility documentation for its fiscal years ending in 2009, 2010 and 2011. Action: Civil money penalty in the amount of $75,000.
regulatory compliance review HUD for any loss (past, present or future) on five FHA loans for a period of five years from the date of the agreement, and to retain and fully pay for a third-party servicing monitor for a period of one year.
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MAY 2013 n Kansas Mortgage Professional Magazine n
Violation: Failed either to timely remit mortgage insurance premiums to HUD/FHA or to notify HUD/FHA within 15 calendar days of the termination of the contract of mortgage insurance, the sale of the mortgage, or both on 20 loans. Action: Civil money penalty in the amount of $8,100 and remit all Mortgage Insurance Premiums and late fees due HUD for 20 FHA insured mortgages serviced by the mortgagee. Violation: Approved loans without properly analyzing the borrower’s credit, approved loans without properly documenting or verifying effective income, approved loans with inadequate verification of the borrowers cash investment in the property, approved loans with inadequate analysis of the borrower’s ability to repay the mortgage obligation, approved a loan with an incomplete Mortgage Credit Analysis Worksheet (MCAW), and failed to implement an acceptable quality control plan. Action: Civil money penalty in the amount of $91,500, to pay $917,528 to indemnify HUD for its losses with respect to five defaulted FHA loans, and to indemnify HUD for any loss (past, present or future) on three FHA loans for a period of five years from the date of the agreement, without admitting fault or liability. Violation: On 13 FHA-insured mortgages serviced or held by the mortgagee, the mortgagee failed to remit Mortgage Insurance Premiums, failed to notify HUD/FHA within fifteen calendar days of the termination of the contract for mortgage insurance or the sale of the mortgage, or both. Action: Notice of Administrative Action withdrawing the FHA approval for a period of one year. Violation: Failed to timely remit 200 Upfront Mortgage Insurance Premiums to HUD/FHA within ten calendar days of closing or disbursement, whichever was later, and failed to honor two indemnification agreements with HUD when it failed to remit payments owed to HUD pursuant to the terms of the Indemnification Agreements. Action: Civil money penalty in the amount of $13,500 and to pay $243,872 to indemnify HUD for its losses with respect to two defaulted FHA loans. Violation: Failed to complete its annual online certification, failed to submit the recertification fee, failed to submit
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its audited financial statements, employed individuals to originate loans who NHL knew or should have known were engaged in prohibited outside employment in the mortgage lending field, permitted non-FHA-approved mortgage brokers to perform loan origination services, failed to adhere to HUD/FHA requirements when underwriting loans for FHA insurance, and failed to adopt, maintain, and implement a quality control plan in compliance with HUD/FHA requirements. Action: Notice of Administrative Action permanently withdrawing the FHA approval. Violation: Failed to remit payments owed to HUD per the terms of an indemnification agreement with HUD, failed to timely notify HUD/FHA of a business change that affected the standing as an approved institution or changed the information on which it was originally approved, failed to timely submit its audited financial statements for fiscal years 2009, 2010, and 2011, failed to timely submit its annual recertification fee(s) for fiscal years 2009, 2010 and 2011, and failed to timely submit its annual online certifications for fiscal years 2009, 2010 and 2011. Action: Notice of Administrative Action permanently withdrawing the FHA approval. Violation: Failed to maintain its state mortgage lender’s license and failed to notify HUD/FHA that it had closed its main office and was no longer licensed in the state. Action: Notice of Administrative Action withdrawing the FHA approval for a period of one year. Violation: Failed either to timely remit mortgage insurance premiums to HUD/FHA or to notify HUD/FHA within fifteen calendar days of the termination of the contract of mortgage insurance, the sale of the mortgage, or both on 97 FHA-insured loans. Action: Civil money penalty in the amount of $15,000. Jonathan Foxx, former chief compliance officer for two of the country’s top publiclytraded residential mortgage loan originators, is the president and managing director of Lenders Compliance Group, a mortgage risk management firm devoted to providing regulatory compliance advice and counsel to the mortgage industry. He may be contacted at (516) 442-3456 or by e-mail at firstname.lastname@example.org.
Footnote 1—Mortgagee Review Board: Administrative Actions, Department of Housing and Urban Development, Office of the Assistant Secretary for Housing, Federal Housing Commissioner, Federal Register, Vol. 78, No. 70, Thursday, April 11, 2013, Notices 21618-2162. For PDF download, see www.LendersComplianceGroup.com, Library, Issuances 2013.
n Kansas Mortgage Professional Magazine n MAY 2013
Growth and Expansio
National Mortgage Pro
Navigating the water
ational Mortgage Professional Magazine recently had the opportunity to gather 10 of today’s top mortgage leaders for its 2013 Mortgage Mastermind VIP Panel Discussion. The event, moderated by National Mortgage Professional Magazine Co-Founder Andrew T. Berman, was put together as a forum to share ideas and pick each other’s brains on the latest trends and innovations taking place in the market. Some on the panel, seasoned veterans who have watched their businesses grow and succeed in the everchanging mortgage market, shared their thoughts and perspectives with others who touched upon their own growth and expansion. No matter the situation, the message remained clear: There is no right or wrong way to go about doing business in the mortgage industry, one’s work schedule and work ethic is dictated by how one defines success.
MAY 2013 n Kansas Mortgage Professional Magazine n
Moderator: Does the size of a company matter anymore? Does the size of a company hurt of hinder its growth? Barbara Gallagher McDonald: I think it goes both ways. I’m very old fashioned, and Welcome Mortgage Corporation has had chances to grow, but I’m very hands-on, so, growth isn’t something we’re interested in. I only work with referrals. We have a small group of people I know and trust, and we make a nice living that way. Craig LaBruno: I’ve never worked for a big bank like Wells Fargo or Bank of America. Mortgage Capital Associates has only about 10 or 12 employees. We don’t take on any new guys, we only go with seasoned veterans in the business. We all work together and help each other out. I’m the FHA guy, and every one in the company has their own specialty. I believe in a slow growth of the company.
Dave Pressel: I think this industry is all about scalability. Whether you have 100 employees or 40, the last thing you want is a person getting overextended. The business really boils down to one’s capabilities. My reputation is made better by the people behind the scenes. It’s in my best interest that the originators or processors I hire know what they are doing. Whether you are as big as Wells Fargo or as small as “Joe’s Mortgage” … it’s about dedication and doing a good job. Kevin Zhu: When I grow, I start with one assistant, then add another, and another. I don’t look at how big a corporation is, as I have found out … I add more to my sales team as I go. You always hit a ceiling. Size, in my experience, can limit your production. Nikitas Kouimanis: I feel sometimes
bigger is better, and that is why I have decided to join Equity Loans. They not only have the strength of a mortgage lender, but maintain flexibility and diversity among a huge product line. To add icing on the cake, they are now Fannie Mae seller/services, or should I say we are now seller/servicers. Ed Kenmure: No matter how big you get, how quickly you get support, whether you are with a large company or small firm, it all depends on how you treat your business. Each one of PrimeSource’s offices acts as an independent company. How they treat the community is like a one-on-one basis. We are not looking at size, but I think how one does business is more important. Jeff Van Note: Brokers are getting squeezed out, so we have to adapt our mentality. Working at a smaller compa-
ny, we are looking to close 15-20 deals, it’s a goal. If you’re looking to close more deals, you’re not going to meet the individual’s needs. Jon Lamkin: If you’re entrepreneurial, and have more freedom, you can go and build your own team. I’m a firm believer in giving the consumer a nice story if you are a relatively unknown company. Robinson Cardona: Small bank or big bank … it doesn’t matter. There’s a difference in how you go about your business, but the goals are the same. Brian Ofsie: If you are too big, you need to streamline your processes. You cannot work the deals and work with the consumer, spending time on the deal. At the same time, we are getting squeezed by the big banks. You must
n in Today’s Mortgage Marketplace
rs of an ever-shifting marketplace The 2013 Mortgage Mastermind VIP Panel was comprised of the following:
Barbara Gallagher McDonald
Vice President PrimeSource Mortgage, Inc.
Senior Mortgage Banker Equity Loans LLC
Moderator: What do you think is stopping you from getting to the next level of originations? Craig LaBruno: Unfortunately, we are a smaller company and lack the ability to hire that many assistants. I feel a little more help would be good. I have a processor who deals with my deals. There was a small period of time four years ago where I was starting to lose faith in this business. About a year ago, I started really liking what I do. The constant changes and the stress of rates changing would get to me. With securities being down and the constant market swings, I really focus more on getting out there. I take care of the inside
AVP/Mortgage Senior Residential President and CEO Sales Manager Home Loan Consultant Vanguard First Hope Bank Mortgage Capital Funding LLC Associates Inc.
work that allows me to get out, I structure my business a little different, and it allows me the time to hit the pavement more. Now that I’ve got things set up how I want them to be internally, I can grow more. Dave Pressel: It’s by choice I don’t go back to that next level. About three years ago, we did close to $100 million in business. It was so much work, so much time. My decision was to be home with the kids when they get home from school and spend time with them. For me, I put the gauge of success on something other than the financial. Getting a large paycheck is nice, for sure, but at the end of the day, that’s not what it’s about for me. Like my grandmother said, “Think twice, act once.” Kevin Zhu: Everyone has their own lim-
Dave Pressel Manager West Town Savings Bank
itations, in terms of time, children or whatever it may be. I stopped working Saturdays and Sundays last year because I hit a level where I can take the time to spend with my family. This year, we hired a sales manager because I want to reduce my working hours and continue to reach the next level. In turn, by adding staff, I have doubled the amount earned. I barely had time to make phone calls, so I give my leads to others. Next level for me is expansion. Nikitas Kouimanis: I like to delegate work to my team and focus on the industry more. This way, I can go after more business from real estate agents, financial planners and CPAs. Ed Kenmure: In the business sense, it’s been a challenge this year to grow and make that jump to the next level, but
Jeff Van Note
Branch Manager Managing Director United Northern of Sales Mortgage Bankers MLD Mortgage Inc. Ltd.
I had to work with the back-office people to connect with our investors. The next level is getting the team ready to deal with products, families and types currently offered. Jeff Van Note: It’s tough to do business in a changing marketplace. Loan officers focus on the negatives more often than not, so personal issues can be distracting. Jon Lamkin: Just this year, I hired a marketing company, and we have been working on branding. We’re working on a lot of different things, as well as updating our CRM system. Last year was our biggest year, it doesn’t matter because it’s a new year. I want to continue to do well, but I pride myself on not missing any of my kid’s games or continued on page 38
n Kansas Mortgage Professional Magazine n MAY 2013
have the right capital for the right investors. You must try and have a good balance without getting too big. Keep your identity and have a great company.
Mortgage Planner Vice President GMH Mortgage Welcome Mortgage Services LLC Corporation
mortgage mastermind 2013 dance recitals. I coach a lot, but if the phone rings, I’ll tell the client that I’ll have to call them back after my kid’s soccer game or whatever I may be tied up with. Brian Ofsie: I originate and manage a lot of people. What I try to do is have everybody work as smart and as hard as they can. I have each individual, including myself, investing back into their work. Everyone has an assistant or two. They need to be out in the field and networking in the community. My goal is to give them enough ammunition to get it done. You don’t have to work 15 hours a day, just work smart and plan for success. Barbara Gallagher McDonald: Desire and need. I used to care about things I don’t care about anymore. Life’s too short to do what you don’t like. I like talking to clients and building relationships. Because I did the sales stuff that I don’t like, I can now sit back and not have to deal with that stuff anymore. It has to be more than three years since I’ve been asked what our rates are. I want my kids to grow up knowing that I was good at what I did.
MAY 2013 n Kansas Mortgage Professional Magazine n
Moderator: Do you think that your company’s structure allows you to have access to top-tier talent and allows you to push loans forward? Dave Pressel: What used to be so simple is now often difficult. We’re in a business where sometimes logic has no place in the workflow. We all play in the same sandbox in terms of compliance, etc. It doesn’t matter what happens with FHA or the DoddFrank Act, I still feel it in my gut whether a borrower is going to make a payment on a loan. The decision-making that was a slam dunk four years ago is now up in the air. Interestingly enough, the changes in our business have gotten a lot of people out of our businesses that shouldn’t have been in our business to begin with. It’s a function of workflow efficiency. Once you’re done with A, go to B, and once you’re done with B, go to C. What works for investor A will not work for investor B. It’s all about planning ahead. Kevin Zhu: It’s very important to distinguish the types of loans and the channels through which these loans travel. We have a huge core center that moves things online, with tons of volume. My own ratio is definitely around 95 percent and you have to communicate with top management to distinguish this. Nikitas Kouimanis: I think that it all depends on the loan and how you put it together. Some loans will obviously move quicker than others through the pipeline, so, if you ask for the right documents upfront and package the loan correctly, it will move quicker than others. Ed Kenmure: Pushing a particular loan, a tough one, through a smaller organization, maybe you get to the mid-sized loans, but
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the mid-sized guys give you the ability to push a loan through with a proper backoffice staff. You can eventually get to enough resources where, as you grow, you can push loans through. Jeff Van Note: It all depends on who is pushing what through. An experienced loan officer will be able to get something through faster than an inexperienced loan officer. It all depends on the type of loan, as well. I think it’s fair that everyone operates under the same terms, but the more deals you close, you should be able to expedite the process a bit. Jon Lamkin: If I don’t think a loan is going to go through, I don’t waste the processor’s time. I’m smart enough to know not to waste the underwriter’s time, but sometimes, I’ll let them know that I need them to look at something today. Robinson Cardona: I do not think everything should be a rush. I think it’s important to follow that model. Brian Ofsie: We try to streamline our pipeline as much as possible. We preunderwrite, and have six or seven underwriters whose job it is to tackle any problems from day one. Once we get to processing, everything is streamlined. When you’re smaller, you can massage the deal, so, that’s always good. On the other side, in terms of operations, it’s getting so difficult to sell loans in the secondary market. Barbara Gallagher McDonald: This business did draw a lot of criticism. Many of those who were criticized left the business, and those who remained, we are used to. I think that’s how you manage. Craig LaBruno: These issues have begun to trickle down to us. I’m not a manager, but because I deal primarily with real estate agents and purchase businesses, I believe in doing the work upfront. I like to pre-approve and close the loan myself. It all depends on the deal. Sometimes, you will see 35-day closings, but at the same time, putting together a three-day closing can really hinder the process. Moderator: What are some of the practices you implemented when you first started in the business that you continue to use today? Kevin Zhu: The things I have been doing the past 10 years have been broadening. I’m always looking for new companies, and am always looking to broaden myself as well. My name is very strong in my community. I’m very tight in the Indian community, I close about 80 percent of the houses in my community … all through referrals. Nikitas Kouimanis: When I first started, I actually was trained and learned that you continued on page 40
n Kansas Mortgage Professional Magazine n MAY 2013
mortgage mastermind 2013
Bonded With NAMB
C’mon ... Step Right Up and Play the Shell Game What does this General Indemnity Agreement do? Should I actually read all of this? The Indemnity Agreement is one of the cornerstones of what makes surety bonds different from other insurance policies. The Indemnity (hold harmless) Agreement allows the bond carrier to recover assets from the indemnitors if the carrier is damaged by having to pay a claim to the obligee because of the principal’s failure to meet the obligations of the bond. Each carrier has its own version of the indemnity agreement with its own terms and conditions. However, they are all constructed with the same purpose: To give the carrier direct, express permission to recover damages. Depending on the amount of the overall bond exposure, the agreement can be as short as one page or as long as a dozen.
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should always take appointments face to face. I still do that. I think it’s important to meet face to face with your customers so you can get them their documents upfront and the client establishes a personal connection with you.
successful. It’s about workflow, and it’s about what not to do. What used to be a standard thing may not be the way they want it done. It will affect your mindset when you understand that you don’t have all the answers.
Ed Kenmure: As much as things change, they stay the same. We can get away from automation, but we still need to work on a loan before it enters the system. When I jumped into the business, we got everything upfront and it’s still the same way.
Moderator: What do you think is the primary difference between top producers and marginal producers in today’s mortgage market? Nikitas Kouimanis: I think it’s in the way we work and what you put into that work. Networking and getting out there are key, but it is really just about motivation … the way you work and what habits drive you. I think others look at this like a job instead of as something they have a passion for. I wake up every day and I am happy to be a part of the achieving the American dream of homeownership. I wouldn’t give this up for the world. I think other people look at this as a nine to five job and pretend it’s just a job or a paycheck.
Jeff Van Note: Rules, values, ethics … if we keep doing things the right way, business will be fine.
By Mason Grashot, CPA
I’ll sign on behalf of my company, but why do I have to sign personally? Why does my spouse have to sign? Why do the other owners have to sign? Why do my other business ventures have to sign? In short, because the surety has been there/done that … once bitten, twice shy. Instead of playing the legal game of trying to determine what “shell” the assets may be hidden under in the event of a bond claim, the surety industry simply will not play unless it’s according to its rules. Regardless of their choice of entity (LLP, LLC, S-Corp, C-Corp), most licensees are closely-held companies. This means that, while there may be a legitimate separation of business and personal finances, decisions, etc. during the normal (happy/healthy) times, at the end of the rainbow (when everyone’s got their hands in the pot of gold) those individuals in control of the company can creatively move cash and other assets out of the company and into the control of themselves personally, their spouses, or even other business entities in which they have an interest. Ultimately, the surety carriers would like the indemnity of anyone who has or could easily end up having the assets that are supporting their underwriting decision to go ahead and bond the principal.
Mason Grashot, CPA is president of The Bond Exchange, a national insurance agency focused on surety bonds with a unique specialty practice centered on the mortgage profession. As the endorsed strategic partner of NAMB—The Association of Mortgage Professionals, The Bond Exchange services thousands of surety bonds through programs designed specifically for the mortgage industry. For more information, call (501) 224-8895 or visit www.thebondexchange.com.
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Jon Lamkin: I had a goal to take applications and get two potential referrals from each deal. I still try to do that. Whether it’s the client themselves or an attorney you connect with, you must always be working on building relationships, and always try to make deals through deals. Robinson Cardona: I always call the customer first, and not wait for them to call you. Following up is big, that’s really something that has worked for me. Brian Ofsie: Always say organized and meticulous to detail. If you do that, you can be a great loan officer. It’s not about being the best salesman, it’s about servicing clients. Every night, I put together a todo list and am prepared for the next day. When I come in, I have a combination of motivational sayings from Tony Robbins, I get myself focused and everybody in the office knows I’m ready to tackle the day. Barbara Gallagher McDonald: I am a 100 percent referral-based business, and still meet my clients face-to-face … these two reasons are likely why many of us are still here today. Referrals are so much cleaner and loyal, they make all the difference in the world. I also keep lists on customers, and have more than 20 years of notes, including their kids names, and follow up with birthday cards, etc. I try to stay in touch as much as possible. Craig LaBruno: I keep up on the latest online and Internet trends, and remain close with my customers through face to face meetings, and connect with financial planners. My niche was in real estate agents and the first-time homebuyer market. Not much has changed for me since day one. I still get out there and make sure I am seen. I make sure I am meeting with my real estate companies once or twice a week. Dave Pressel: I am always teachable and desire to acquire knowledge. We don’t have the answers to everything in this industry. Nowadays, we get four or five product changes a day. It’s crazy. Our industry has had a lot of changes, and I think sticking with those changes and staying on top of them are keys to remaining
Ed Kenmure: We all like what we do. Consistency, motivation, organization, and having a strong passion for your career are all keys to success or failure. Jeff Van Note: I think it comes down to one’s natural talents. When I get a closing report, I relate it back to sports. If you are submitting 10 files and staying competitive, maintain strong ethics and have a desire to succeed, those attributes will separate you from the others. Jon Lamkin: Time-management is key. I’ll see guys with a huge closing month, but nothing the next month. If you are organized, I think that will put you ahead of other guys in the business. It’s a cycle, so having prospects for your next month is key. Robinson Cardona: You must love what you do. If you love what you do, you’ll be successful in any career. Brian Ofsie: In this industry, you don’t need to re-create the wheel. I believe you must map out all your aspects, properly manage your time, market properly and have the right technology in place. Technology is unbelievable, so making use of it is vital to any business. If you have some who are excellent at sales and marketing, you will be fine. Barbara Gallagher McDonald: I believe that you must truly love the business. I have always loved the business, and if you truly care, people know that and good follows. Craig LaBruno: I have been lucky enough to work with great producers. Everyone has a little niche. The main thing that separates us is the follow-up and making sure clients are followed-up with. It’s the little touches you do. Obviously, having a good continued on page 42
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n Kansas Mortgage Professional Magazine n MAY 2013
n Direct Access to Underwriters
mortgage mastermind 2013 staff and good people behind you are important as well.
NAPMW Houston is excited to host the 2013 National Educational Conference and YOU are invited to join us! One giant leap for NAPMW but one quick flight for you! We welcome the opportunity to show you our city. The exciting preparations are under way! CONFERENCE DATES:
May 16 - 19, 2013 42
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MAY 2013 n Kansas Mortgage Professional Magazine n
Dave Pressel: Adopting a nice, positive attitude helps success. When you get to the office, set some goals for the day. I once had a loan I closed all via e-mail, I never spoke to the woman before. Again, its about remaining teachable. This is what separates us from a middle-tier guy. Thereâ€™s a different mentality to defining success. Geographically, there are companies with lower-loan amounts, so itâ€™s all relative. Itâ€™s not about volume, its about units to me. Iâ€™m not shallow enough to base my success in life on money. In the grand scheme of things, I know what I can do. Itâ€™s all about accountability and reliability. The client doesnâ€™t care. They want to know if you can close their loan and if it will be done on time. If you apply logic to a situation, failure is not an option. Kevin Zhu: Basically, remaining consistent, establishing a reputation, using technology and executing successfully helps keep you consistent. Whenever new technology comes onto the scene, I look for it and research it. Google has really helped make everything easier. I use a Google Voice number, so when a client calls, my assistant has the potential to answer, which helps the process. I use Google Docs to monitor when business is up or when business is down. All of these technological enhancements have made things easier. I use everything, LinkedIn, Google, etc. Dave Pressel: I get at least two loans a month off Facebook, and I donâ€™t even advertise my rates. Google is definitely a plus.
For additional information, please contact the Conference Chairs: Kathryn Hardeman 1st Alliance Mortgage LLC LBUISZO!LBUISZOIBSEFNBODPN Deanna Mellas North American Title Company ENFMMBT!OBUDPN Richard Alvarado Sutherland Mortgage Services, Inc. SJDIBSE!SJDIBSEOBMWBSBEPDPN
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Craig LaBruno: Every few days on LinkedIn, I post articles and stuff on my page, I have become very active on LinkedIn and have made countless valuable connections. Moderator: What does retirement look like for you? Ed Kenmure: I have four kids all with the same wife. I realize that Iâ€™m going to have to work until Iâ€™m 64-years-old because of college, but Iâ€™ve also looked at the business as being great to be in. Weâ€™re not putting out fires or shooting bad guys. On days when we relax, we can still get a client and help them out, play some golf, whatever. Why do I want to sit around and watch TV or play golf? Why not help people all my life? Iâ€™m not going to retire. Jeff Van Note: Itâ€™s different for everyone, and it depends where youâ€™re at. You have to plan accordingly and give yourself the option to retire if you need to. Jon Lamkin: Put your money in different buckets. The business is jamming, and Iâ€™m a big proponent of not wasting money. But if you want to enjoy life and plan accordingly, youâ€™ll be fine.
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Robinson Cardona: My dad used to say, â€œIf I stop working, Iâ€™ll die.â€? Retirementâ€™s not for me. Brian Ofsie: Itâ€™s great that we are making money, but you never know what tomorrow will bring. Itâ€™s good to have meetings like this to pick one anotherâ€™s brains and make as much money as we can. Barbara Gallagher McDonald: In 2003, I remember telling my loan officers that the money is very good and you need to sock it away, and they kept throwing it in my face. However, Iâ€™m saying the same thing now. We have to prepare. Save what you can save, because eventually, rates are going to rise once again. Iâ€™m not an expert, but eventually, weâ€™re going to be at a rate of six percent or so, and people wonâ€™t be saving money anymore. I think we need to prepare not necessarily for retirement, but for the lean years that may lie ahead. I donâ€™t think the little guy will ever be squeezed out. Craig LaBruno: Iâ€™m going to start setting aside money for my kidâ€™s college fund. Weâ€™ll have to take it upon ourselves and use our own money. We donâ€™t have stock options or a 401k or anything like that. We donâ€™t have to punch a clock, we can be mobile. I donâ€™t plan on retiring, but I do plan on slowing down. Iâ€™ll scale down and cherry pick is all. Dave Pressel: I still play music, but I gave it up when I was building my business. I love to play the keyboard, and I get to play once a week with a couple guys. When I retire, Iâ€™m going to play music, and do a few loans here and there. Iâ€™ll still get business from time to time, unless I cut myself off from the industry. The Web is very dangerous, so its imperative that you maintain your reputation in this business. Thatâ€™s the snowball that will either lead to a lot of business or a factor that will contaminate the business down the line. As long as youâ€™re making â€œXâ€? amount of dollars and donâ€™t live to excess, thatâ€™s usually a safe and steadfast formula for maintaining your life down the line. Kevin Zhu: You cannot trust Social Security. I will likely retire and keep writing one or two loans a month. You donâ€™t have to work a crazy amount. One or two loans should be very easy. For myself, I plan on staying on top of technology and continue to learn. Itâ€™ll be good to see how technology impacts what we do from here, and honestly, I do about 50 percent of my loans via e-mail. If I can use new technology to have other people help me, those one or two loans per month can pay for my retirement. Nikitas Kouimanis: Iâ€™m not looking to retire. Iâ€™m looking to do this until the business kills me or until I die.
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national, full-service mortgage lending firm offering retail, correspondent and wholesale mortgage solutions to clients of varying income and credit types. The new facility, which is two miles away from the company’s previous headquarters, is a top-floor location. FGMC will occupy the entire level. The headquarters is 60 percent larger than the company’s previous location, and includes increased and improved space for technology, collaboration and presentations. Chief Executive Officer Andrew Peters notes that the relocation was made necessary by the company’s dramatic growth in the past two years, including a 50 percent increase in staffing. “We’ve now established four distinct production channels, all of which are growing quickly,” Peters said. “We foresee considerable growth in the near future, and are confident it will be sustainable. Quite simply, we outgrew our old facility.”
AllRegs Powers Poli Mortgage Group ‘s Lending Library Using
Veros Real Estate Solutions has been named a distributor of the
Global DMS Recognized by Pennsylvania Governor
Global DMS has announced that it has been named one of five finalists in the state of Pennsylvania’s inaugural “Governor’s Impact Awards” in the category of small business impact within its region. The Governor’s Impact Awards recognizes companies from 10 different regions throughout the state in five categories: Community Impact, Small Business Impact, Entrepreneurial Impact, Export Impact and Jobs First Impact. In the category of Small Business Impact, the award is given to a business with under 100 employees that has been an innovator in its industry, demonstrated revenue/profit growth, expanded its workforce, and been committed to the growth and development of its employees and community. The Governor’s Impact Awards is a joint effort coordinated by the Governor’s Office, the Department of Community and Economic Development (DCED) and the Team Pennsylvania Foundation. “We are honored to be named a finalist in the small business category by the judges for the inaugural Governor’s Impact Awards,” said Vladimir Biencontinued on page 45
n Kansas Mortgage Professional Magazine n MAY 2013
Veros Named Master Distributor of Freddie Mac Valuation Tools
Norwood, Mass.based Poli Mortgage Group Inc. has announced that it will leverage the AllRegs technology platform to publish, manage and maintain its lending libraries of underwriting guidelines. Poli Mortgage Group will now leverage the AllRegs technology platform and publishing expertise to manage and maintain its retail and wholesale lending library of mortgage underwriting guidelines. Users will benefit from a variety of productivity tools, including an electronic Table of Contents tree with links to content, guidelines and forms. Content is also accessible through a robust search engine that features a thesaurus with industry jargon and relative matching results. Through the archiving feature, users will be able to view revised content with the effective date displayed and a shaded background. “We are excited to help Poli Mortgage Group utilize an innovative and robust resource to publish their guidelines and communicate policy and changes, as well as navigate and search the company’s underwriting guide,” said Dan Thoms, executive vice president of AllRegs. “Poli Mortgage Group’s lending libraries will help their staff and partners alike to streamline business processes and increase productivity.” In addition, the Poli Mortgage Group Lending Libraries features a Recent Updates section to announce changes to content, as well as E-mail Alerts to notify users of changes.
Freddie Mac Home Value Suite, which includes the Home Value Explorer (HVE) and Home Value Calibrator. Freddie Mac’s Home Value Suite is a defined set of valuation modeling tools that are designed to automate, streamline, and ultimately drive down the industry’s cost of collateral valuation. The suite was developed to serve lenders in processing and underwriting capacities, portfolio managers, quality control professionals, real estate brokers and Wall Street investors. Veros is authorized to directly distribute the products. Freddie Mac’s HVE is an automated valuation model (AVM) that incorporates the property data from the GSE’s portfolio of loans, appraisal data from the Uniform Collateral Data Portal (UCDP) and data from the GSE’s portfolio on the 12 non-disclosure states that do not allow public access to this information. “We have found the HVE AVM to be an excellent complement to the VeroVALUE AVM in cascade approaches, which are available via our proprietary valuation management systems,” said Charles Rumfola, senior vice president of strategic initiatives for Veros. “We encourage clients to engage in their own blind AVM tests or utilize the testing conducted by industry experts, and the results of those tests consistently show the VeroVALUE AVM and Freddie Mac’s HVE AVM as top performers.”
FHA Lays Down the Hammer on Multiple Lenders Again: Find Out Why By Jeff Mifsud
MAY 2013 n Kansas Mortgage Professional Magazine n
In compliance with Section 202(c) (5) of the National Housing Act, the U.S. Department of Housing & Urban Development (HUD) publishes notices in the Federal Register making known the cause and description of administrative actions taken by HUD’s Mortgagee Review Board against FHA-approved lenders. The purpose of this article is not to single out specific companies (which I’m not mentioning by name), but to highlight the reasons why HUD has penalized these companies so we can learn from their unfortunate experience. This public notice from FHA coincides nicely with this issue’s theme of training since otherwise good companies are often fined heavily due to a lack of internal training systems; systems which needed to be in place to assure strict staff compliance of FHA guidelines. Now we’ll explore some of the penalties recently imposed on six FHA lenders. These penalties include: Civil Money Penalties; Withdrawals of FHA Approval; Suspensions; Probations; Reprimands; and Administrative Payments. The cases below are excerpted from the Federal Register Vol. 78, No. 70 dated April 11, 2013. Each case shows the action taken by FHA and the cause of the action.
Case #2 Action: On March 22, 2012, the Board issued a Notice of Administrative Action which immediately and permanently withdrew the FHA approval of the company. Cause: The Board took this action based on the following violations of FHA requirements alleged by HUD: The company failed to perform quality control functions in compliance with FHA requirements, failed to meet the requirements for participation in the FHA mortgage insurance program, failed to ensure that the correct mortgagee identification number was used when originating FHA-insured mortgage loans, failed to adequately document the source of and/or adequacy of funds used for closing, failed to correctly calculate and document the mortgagor’s income, failed to verify the stability of the mortgagor’s income, failed to ensure the mortgagor was eligible for an FHA insured mortgage loan, failed to ensure the property met HUD’s eligibility requirements, failed to comply with TOTAL Scorecard requirements, failed to comply with HUD’s property flipping requirements, failed to provide construction documents required for property eligibility and/or high ratio financing resulting in over-insured mortgages, failed to ensure that the maximum mortgage amount was correctly calculated resulting in over-insured mortgages, failed to ensure that data submitted to HUD systems was accurate, and charged mortgagors unallowable fees. That’s an awful lot of oversight, don’t you think?
Case #1 Action: On April 27, 2012, the Board entered into a Settlement Agreement with a company that required a Civil Money Penalty in the amount of $75,000, without admitting fault or liability. Cause: The Board took this action based of the following violations of FHA requirements alleged by HUD: The company failed to notify the Department that it was the subject of multiple state regulatory actions and sanctions, and submitted false certifications to HUD in connection with Academy’s annual renewal of eligibility documentation for its fiscal years ending in 2009, 2010 and 2011.
Case #3 Action: On Sept. 14, 2012, the Board entered into a Settlement Agreement with a company and required it to pay a civil money penalty in the amount of $1.2 million and to complete mortgage record changes to facilitate the payment of certain FHA insurance claims, without admitting fault or liability. Cause: The Board took this action based on the following violations of FHA requirements alleged by HUD: The company submitted or caused to be submitted false information to HUD in relation to 63 mortgagee record changes, failed to reconcile its portfolio data, and allowed
HUD records to incorrectly identify the company as the holder of 97 FHA-insured mortgage loans. In addition, they submitted false information to HUD on 133 claims for FHA insurance benefits and, in 90 instances, claimed benefits for ineligible holders of record.
Case #4 Action: On June 14, 2012, the Board entered into a Settlement Agreement with a Company and required it to pay a civil money penalty in the amount of $12,000, without admitting fault or liability. Cause: The Board took this action based on the following violation of FHA requirements alleged by HUD: The company failed to adopt and maintain a quality control plan and management reports, failed to implement a quality control plan, allowed non-employees and non W-2 employees to originate FHA loans, and failed to require the loan interviewer to sign page four of the initial Uniform Residential Loan Application (Fannie Mae Form 1003), and page one of the initial Form HUD 92900–A.
Case #5 Action: On Nov. 21, 2012, the Board entered into a Settlement Agreement with a company and required it to pay a civil money penalty in the amount of $37,000, and pay $92,677 to indemnify HUD for its losses with respect to one FHA loan, to indemnify HUD for any loss (past, present or future) on five FHA loans for a period of five years from the date of the agreement, and to retain and fully pay for a thirdparty servicing monitor for a period of one year, without admitting fault or liability. Cause: The Board took this action based on the following violations of FHA requirements alleged by HUD: The company failed to engage in loss mitigation, failed to service FHA loans in accordance with HUD requirements, and failed to offer property disposition options to the mortgagors.
Case #6 Action: On July 16, 2012, the Board entered into a Settlement Agreement with a Company and required it to pay a civil money penalty in the amount of $91,500, and to pay $917,528 to indem-
nify HUD for its losses with respect to five defaulted FHA loans, and to indemnify HUD for any loss (past, present or future) on three FHA loans for a period of five years from the date of the agreement, without admitting fault or liability. Cause: The Board took this action based on the following violations of FHA requirements alleged by HUD: The company approved loans without properly analyzing the borrower’s credit, approved loans without properly documenting or verifying effective income, approved loans with inadequate verification of the borrowers cash investment in the property, approved loans with inadequate analysis of the borrower’s ability to repay the mortgage obligation, approved a loan with an incomplete Mortgage Credit Analysis Worksheet (MCAW), and failed to implement an acceptable quality control plan. As you can see from the actions taken by FHA against these companies, FHA means business when it comes to complying with FHA policies and procedures. From your company marketing to your MLOs taking application, to your processors, closers and insurers, all need to be continuously trained and updated on FHA requirements. It’s hard to believe that companies in today’s regulatory environment still don’t take compliance seriously. Given the high number of FHA loans currently being originated, and the revenue that can be generated, how can a company compete without FHA approval? Let this serve as a lesson to all company decision makers to analyze the strength of your business systems when it comes to FHA compliance, and to the staff’s level of knowledge needed to meet the compliance requirements. Go FHA! Jeff Mifsud is founder of Michigan-based Mortgage Seminars LLC, a former FHA underwriter with 15-plus years of experience originating FHA loans, an FHA expert for LoanToolbox.com and creator of The FHA Originator, a monthly FHA newsletter. Jeff may be reached by phone at (248) 403-8181 or visit www.MortgageSeminars.com.
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Aime, president and CEO of Global DMS. “Global DMS is a highly entrepreneurial organization that provides innovative software solutions for the mortgage banking industry and has built a company that is growing and making a positive impact in our local community. We’re very excited to be recognized by Governor Corbett for our achievements, commitment to our employees, the mortgage industry and the state of Pennsylvania.”
Mortgage Master Expands Further Westward Into the California Market
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n Kansas Mortgage Professional Magazine n MAY 2013
continued on page 46
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V a l u T r a c Software and Platinum Data Solutions have announced they have entered into a partnership that sets a new standard for a single, end-to-end appraisal quality verification and management technologies solution. The companies will integrate ValuTrac’s ValuTrac Pro, a customizable appraisal management system, with Platinum’s RealView, a configurable appraisal data quality verification technology, to provide mort-
focusIT Inc. has announced a partnership with renowned mortgage sales and marketing guru Greg Frost, integrating Greg’s sales and marketing software, including the ACTion! Marketing System, Daily Communicator, Call Capture Marketing System, and more, with focusIT’s Pulse productivity software for mortgage originators, providing Pulse users with a comprehensive, effective system for marketing, selling and managing loans. “The way we’ve integrated Greg’s systems into Pulse, we’re offering our customers a set-it-and-forget-it marketing program,” said Josh Bopp, CEO of focusIT. “Greg’s systems literally guide users with day-by-day instruction and automation to easily reach prospects and referrals with consistency.” Pulse is a Web-based software that fully integrates into the Calyx PointCentral loan origination system. The seamless exchange of information between the two software solutions enables users to manage their loans, while also automating sales, production
Wholesale Lending Correspondent Lending Aggregation Partnering
ValuTrac and Platinum Data Enter Into Appraisal Quality Partnership
Greg Frost Announces Marketing Partnership With focusIT
Your direct path to growth in the Reverse Mortgage market.
Mortgage Master has announced that it plans to expand its West Coast geographic footprint by opening new branch offices and recruiting high quality production professionals. Mortgage Master, which led the state of Massachusetts in residential loan production in 2012 (bank or mortgage banker), is now focused on leveraging its successful model in the California market. Ito Rodi, who recently was named branch manager of Mortgage Master’s La Jolla, Calif. branch, will lead the drive to recruit additional high quality loan officers and increase originations throughout San Diego County. The La Jolla, Calif. branch currently has six actively producing loan officers, including a dedicated team of onsite underwriters and processors with 75 total years of experience underwriting in California. “Our expansion plans, which have just begun in California, have always been based on having the highest quality and most experienced mortgage professionals in place to lead and drive our growth,” said Paul Anastos, president of Mortgage Master. “We are confident that Ito’s successful production track record, industry knowledge, and mentoring skills will help us attract top industry talent, like Brian Wada, by offering them the opportunity to deliver the best possible pricing and service to borrowers, while maximizing their earnings potential.”
gage lenders and appraisal management companies an all-in-one solution for managing workflow, ensuring compliance, and mitigating risk in the appraisal review process. “ValuTrac is setting a new standard by providing the industry with state-ofthe-art, fully customizable appraisal management technology,” said Clint Cornett, chief executive officer of ValuTrac. “Platinum is the premier provider of appraisal verification tools and a perfect partner for us to further help our clients mitigate risk in the lending value chain. By adding RealView to our product offerings, we now offer appraisal management companies, banks, credit unions, and mortgage lenders the industry’s most advanced appraisal management system to help them operate more efficiently, enhance customer service, mitigate risk, and ensure industry regulatory compliance.” ValuTrac Pro is a customizable appraisal management system that streamlines appraisal workflow, producing huge operational efficiencies, while mitigating business risk. ValuTrac Pro customers gain significant efficiencies with one repository for all appraisals, streamlined webbased appraisal ordering, real-time appraisal status, automated status notifications and appraiser selection. ValuTrac Pro is fully customizable to fit each customer’s specific business requirements.
heard on the street
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and marketing efforts. Pulse enables loan originators to achieve what users refer to as drastic increases in productivity and efficiency throughout the mortgage cycle, from prospecting to close to follow up marketing. A renowned expert in mortgage originations, Greg Frost has been one of the country’s top producers in the mortgage industry for more than two decades. He has been recognized as the first billion dollar loan originator by National Mortgage News and the number one mortgage originator in the state of New Mexico by Albuquerque Business Journal. His sales and marketing systems are based on his personal formula for achieving the high volume of transactions he has generated over the past two decades. Frost’s sales and marketing systems provide marketing templates as well as a formal process for contacting prospects and referral sources at predetermined intervals.
Title Source Expands California Operations
Title Source has announced that it has expanded its presence in California,
MAY 2013 n Kansas Mortgage Professional Magazine n
and is now licensed to write title insurance policies in all 58 counties in the state. This is in addition to Title Source’s current presence in California, where the company has been providing escrow and closing services since 2004. Title Source has been writing title insurance policies in the state’s most densely populated areas since its 2007 acquisition of Transunion Title and Escrow, but just recently expanded to include the entire state. Also in 2008, the company’s service expanded to include title insurance in the most populated counties within the state. “We are excited to extend our title coverage throughout the entire state of California and look forward to delivering the seamless and comprehensive service experience that our clients have come to expect from Title Source,” said Jeff Eisenshtadt, president and CEO of Title Source. “Successfully obtaining authorization from the Department of Insurance to operate in all 58 counties in California is a great achievement,” said Tim Donovan, corporate counsel at Title Source. “This is consistent with our mission to remain the largest independent provider of title insurance, property valuations and settlement services in the nation.”
Capsilon Merges Katalyst and DocVelocity Into One Product Capsilon has announced that it has merged its Katalyst and DocVelocity imaging systems into a combined offering, called DocVelocity, available to all lenders. This product combination follows Capsilon’s recent acquisition of the DocVelocity business. Until recently, the Katalyst and DocVelocity services were sold to different segments of the mortgage banking market. With Capsilon’s acquisition of DocVelocity, the company is now able to better serve the entire market. The unified system is scalable to meet the needs of both large and small mortgage lenders. “Our DocVelocity offering combines an award-winning, highly scalable document management solution with superior maintenance, support and professional services capabilities,” said Sanjeev Malaney, chief executive officer at Capsilon. “The unified DocVelocity system enables Capsilon to serve small, medium and large mortgage lenders equally well with single industry-standard solution.” Capsilon developed much of the technology that DocVelocity marketed and sold from 2007 until its acquisition. Lenders who previously bought from DocVelocity will benefit from this consolidation, as they now have a direct relationship with the company that develops and supports the technology. In addition, certain optional capabilities, such as mobile access and enterprise interoperability, previously provided only by Capsilon to its own customers, are now available to all new and prior DocVelocity customers. All customers will benefit from the combined product lines, whether they bought from Capsilon or DocVelocity, as they all will now use the same, unified technology platform and receive consistent support, training and services offerings.
CoreLogic Acquires Case-Shiller
CoreLogic has announced the acquisition of Case-Shiller from Fiserv Inc. In addition to the widely recognized CaseShiller Indexes, CoreLogic will continue to offer its CoreLogic HPI, which represents the most geographically comprehensive and current set of home price indexes available. The CoreLogic HPI and the Case-Shiller Indexes are complementary measures of home price trends utilizing the same baseline methodology of repeat home sales. The Case-Shiller Indexes will be renamed the CoreLogic Case-Shiller Indexes. The S&P/Case-Shiller Home Price Indices will retain their brand name. The CoreLogic HPI, CoreLogic Case-Shiller Indexes, and S&P/CaseShiller Home Price Indices reports will
continue to be published and distributed on their customary time schedules and in their current formats. Dr. David Stiff, chief economist for Case-Shiller, will continue to supervise the preparation of the CoreLogic CaseShiller Indexes and comment on the findings of those indexes. Dr. Mark Fleming, chief economist for CoreLogic, will continue to supervise the preparation of the CoreLogic HPI reports and comment on the findings of those reports.
National MI Officially Launches Operations National MI has issued its first mortgage insurance commitments, officially marking its entry into the private mortgage insurance (PMI) business. National MI plans to quickly establish itself as a company that offers the most definitive terms of coverage in the industry. The company has approved its first 100 master policies with lender customers. Both Fannie Mae and Freddie Mac approved National MI as a qualified mortgage insurer in January, and National MI intends to work with lenders nationwide. To date, the company has been approved in 46 states and the District of Columbia, and expects approval from the remaining four states in the near term. “With our unique master policy and transparent terms of coverage, National MI is reinventing private mortgage insurance,” said Bradley Shuster, president and CEO. “By raising over $500 million in capital last year, we led the way for the reintroduction of private capital into the mortgage insurance industry.” National MI was founded last year by Bradley Shuster and Jay Sherwood, executive vice president and CFO of the company. In 2012, Shuster and Sherwood raised $550 million in private capital to launch the new venture. The company estimates that its available capital will support mortgage insurance coverage on over $30 billion of mortgage loans, which will help make homeownership available for roughly 150,000 households throughout the country, most of whom are expected to be first-time homebuyers.
Liberty Home Equity Solutions Purchased By Ocwen Financial Corporation Ocwen Financial Corporation announced that it has completed the purchase of Liberty Home Equity Solutions from Genworth Financial. Liberty will continue to offer reverse mortgages through direct, wholesale and correspondent channels. “Liberty is the industry leader in helping seniors secure their retirement with strong customer-service and superior quality,” said Ronald M. Faris, chief executive officer of Ocwen. “We believe
this promising market offers enormous long-term growth potential, and this purchase positions Ocwen to capture that growth.” Pete Engelken, president of Liberty Home Equity Solutions, said “We are very excited to complete this transaction and become a part of one of the largest mortgage servicing and origination companies in the industry. Together we will be able to help even more seniors with home equity retirement income solutions, including FHA and proprietary products.”
Value Services LLC Changes Name and Launches New Site
Quicken Loans Acquires Servicing Rights from Ally Bank
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NewDay USA Acquires Education Provider Abacus Mortgage Training Chrysalis Holdings LLC, parent company of NewDay USA, has announced it has acquired the intellectual assets of Abacus Mortgage Training and Education, a privately held company and provider of NMLSapproved loan officer training and education for mortgage originators. This timely acquisition supports and strengthens another of Chrysalis’ key holdings, NewDay USA, one of the nation’s leading mortgage companies serving the homeownership needs of veterans by providing VA, FHA, reverse and conventional loan products. NewDay USA also provides loan officer education and training through its NewDay USA University initiative. The acquisition enhances NewDay USA University’s capabilities and positions the company to achieve its objective of serving the veteran community. “The NewDay USA University initiative is one of the cornerstones of our company’s success,” said Rob Posner, chief executive officer of NewDay USA. “At NewDay, we are committed to developing the industry’s next generation of mortgage bankers. The University’s programs, which focus intensely on originations, loan processing and underwriting, will deliver the training that puts our professionals on the path to a successful career.” Abacus Founder Paul Donohue will join the leadership team at NewDay USA and serve as Dean of NewDay USA University. In this capacity, he will manage and oversee the design of leading-edge curriculum devoted to housing finance sales, service and compliance issues. Donohue, whose mortgage and housing industry experience spans more than 30 years, is a nationally-renowned speaker and educator in the lending industry. He is the author of numerous training courses approved for federal and state mandated requirements. Abacus team members Tom Estes Jr., continued on page 67
Grow with FAMP in 2013... Join us at our 2013 Convention & Trade Show July 31 through August 3, 2013 Attendees Complete Your NMLS-Approved Required Continuing Education in 1 Day Meet and Hear Industry Experts at Our Luncheons Attend Breakout Sessions to Sharpen Your Professional Skills and Knowledge Attend Our Annual Trade Show to Meet the Industry Professionals You Need to Know Participate in the FAMP Golf Outing at the Beautiful Shingle Creek Golf Club
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Visit us at www.MyFAMP.org for more information.
HERE WE GROW AGAIN
n Kansas Mortgage Professional Magazine n MAY 2013
Detroit-based Quicken Loans Inc. announced the purchase of approximately $34 billion in mortgage servicing rights from Ally Bank. The servicing pool is comprised of non-delinquent Freddie Mac and Fannie Mae-backed mortgages that currently have higherthan-market interest rates which could substantially benefit from refinancing. The acquisition, expected to close in the second quarter following approvals from Fannie Mae and Freddie Mac, will dramatically increase Quicken Loans’ servicing footprint. In the last year, the company has aggressively built a $90 billion mortgage servicing portfolio, making it the nation’s 17th largest servicer. With the addition of the $34 billion in servicing from Ally Bank, the company is expected to grow to be a top-10 servicer by mid-year.
PB FINANCIAL GROUP
Value Services LLC has announced that it has changed its name to reflect the mortgage industry’s growing demand for service and value in the appraisal market. The company was originally founded as Reese Appraisals and was later affiliated with IRRResidential. In addition to its new name, Value Services has launched a new Web site, www.ValueServicesAppraisals.com, and in the coming months plans to introduce a new appraisal solution aimed at addressing the mortgage industry’s most pressing valuation needs. Value Services provides residential and commercial property appraisals in addition to appraisal management services, forensic appraisal reviews, litigation support, alternative valuation products, appraisal compliance services and other solutions. All valuation work is performed by licensed and certified appraisers who have established themselves as leaders in their local markets. The company’s staff includes licensed builders, certified expert witnesses and USPAP-certified instructors.
“We have not been bashful in making the market aware of our interest in acquiring servicing rights,” said Bill Emerson, chief executive officer of Quicken Loans. “This transaction with Ally Bank allows us to purchase a well performing pool of loans, and will help grow our servicing footprint. This servicing pool will also create a large opportunity for Quicken Loans to refinance a substantial amount of these clients into significantly lower monthly payments.” The company also announced that it will continue to pursue servicing pools, while also growing its servicing portfolio organically through its mortgage origination business. In 2012, Quicken Loans originated a company record $70 billion in residential home mortgages, making it the nation’s third largest mortgage lender.
Critical Factors to Develop
Call Confidence Factor #2: Comprehend the “art” onfidence is a mag- and “science” of netic personal qual- appointment scheduling
By Jeff Krantz
MAY 2013 n Kansas Mortgage Professional Magazine n
ity that causes Contacting prospects to schedule prospects to desire to appointments an art form. It’s a real hear what we have to say. It’s one of life, authentic endeavor to connect the most effective traits of top pro- with a real person who has very real ducing sales professionals. But needs. Appointment scheduling how do we get it? is an art form because it’s a Every sales represenand all “Even the best “people-business,” tative, whether the people are different. We “newbie” or the seainterpret experiences in the business soned professional, differently much in experiences appre- experience days when the same way that an hensions from time they don’t ‘feel’ like artist’s painting may to time when it be interpreted differcomes to prospecting making prospective ently by a viewer. One for new business. This size does not fit everyphone calls.” nervousness has been one. commonly known as call Appointment scheduling is reluctance. It’s natural. We all get also a bit of a science, because it can it. But what separates the top pro- be completed successfully if we break it ducers from the rest of the sales force down into a proven process. If we folis how they get over it and develop low sequential steps that work each call confidence. time, we can be more assured of reachThe following five factors are cru- ing our desired outcome. cial to develop the confidence required to effectively prospect and Factor #3: schedule quality sales appointments: Proven process Driving a car that has a stick-shift Factor #1: transmission involves following a Be fully prepared proven, sequential process. If you It starts with research. We must have skip steps, you will either break enough quality information on the something or hurt someone. In the background of the prospect and their same way, successfully scheduling purchasing tendencies. Once we have sales appointments follows a proven this understanding, we can draft an process. effective, well thought out, pre-call plan. Successfully scheduling a quali- Factor #4: fied appointment then becomes a Experience matter of executing the plan. Nothing beats the experience that is
developed over the course of time as we practice, practice, practice. The most accomplished and successful professionals in every industry have spent time practicing their craft until they have mastered it. Like any seasoned professional, through trial and error, they know what works and what doesn’t work. These professionals draw on years of experience that has made them what they are today. When it comes to developing confidence, there is nothing quite as effective as the experience that develops the skills we need to perform at our very best.
Factor #5: Acknowledgement Who doesn’t like to celebrate success? When sales managers give credit to those on their team who have achieved milestones, they help them to develop greater confidence. I’ve developed sales leadership programs which equip sales managers with the acumen to positively lead their sales teams to greater levels of achievement. Inspirational leaders are those that provide recognition and acknowledgement to their teams when they succeed.
By Dan Thoms
l Factor #2: View the appointment scheduling process as critical to your success Imagine trying to drive a car and “skip” second gear? The engine would stall. If you want to drive it successfully, you have to follow the proven process and move properly through all the gears. Appointment scheduling is a critical step in a successful sales process. If you avoid this step because you are reluctant, your sales will stall. Developing a positive mindset toward sales appointment scheduling is a critical factor in overcoming call-reluctance. l Factor #3: Proven methods When we follow a successful method, it takes the stress off of us and puts it onto the process. It’s not a matter of whether or not the method works, it’s more a matter of whether or not you “work” the method. l Factor #4: Partnering Accountability is an incredibly motivating factor in business. Sometimes when we try to “go it alone” we run out of inspiration or may even fall back into old, ineffective habits. If you have a colleague, whose motivation is to see you succeed, he/she can act as a mentor. This person can offer encouragement and feedback when you need it most. That type of edification builds confidence and alleviates the feelings of callreluctance. l Factor #5: Practice, practice, practice There is nothing that fosters confidence or dispels fears like the experience that results from practicing. The more time you practice the skill of appointment scheduling, the faster you will master it.
• I don’t like the feeling of being rejected. • I feel like I’m bothering people. • It feels as though I’m just interrupting them. • They feel like I’m just calling to “sell” them something.
Every successful professional spends ample time practicing their skill, over and over and over again. Each exercise of the skill becomes a learning opportunity of what works best or a moment of enlightenment for what “not to do again next time.” We all learn through trial and error.
Five factors for overcoming every hint of call-reluctance l Factor #1: Prepare and plan Planning is critical in every sales
Jeff Krantz is of www.JeffKrantz.co LLC trains the techniques that ultra-top sales producers use to fill their calendars with qualified sales appointments. He may be reached by phone at (716) 432-1202 or email email@example.com.
The mortgage industry today is in the midst of significant change. Between investor and agency requirements, and the ongoing changes in regulatory compliance requirements, the need for clear and current documentation has never been greater. In today’s fast-paced, change-centric environment, finding the time, attention, and most importantly, resources, to complete large scale authorship initiatives is a challenge in and of itself. To that end, AllRegs has launched engagement-based professional services to meet the documentation needs of mortgage lenders and the various departments within their organizations, including mortgage compliance, mortgage underwriting, mortgage servicing and more. While doing custom documentation for many large scale clients, we found that many companies need continued updates to projects as industry changes are made. For example, a company looking for a Credit Policy Manual or Seller’s Guide may also benefit from scheduled quarterly updates. Engagement-based services offer the ease of continuing updates and changes without the need for additional contracts or sales meetings. You let us know how else we can support your documentation goals, and our writing team gets back to work without a loss in momentum. From policies and procedural guidance, to full service lending guides (wholesale, retail, correspondent, etc.) mortgage lenders can rely on our team of experts to create a custom documentation solution, with the ability to scale up or down as the needs changes. Some benefits of these engagement-based services include: n Leverage AllRegs 20+ years of industry experience and understanding of regulatory compliance and industry best practices for a fraction of the price of a full-time staff writer n Create full-scale documentation for your organization that can easily be published in a variety of formats, including AllRegs Publishing Services n Expand project scope easily using the engagement-based project model n Create the custom solutions you need, based on the available suite of services n Engagement Reports issued regularly to keep you informed on the time/resources expended on your project, with no budgetary surprises n Project management and communication supported by AllRegs, with insight into how comparable companies are approaching similar challenges n Consultative guidance resulting in stronger practices and improved efficiencies For a personal consultation on your engagement needs, call your dedicated account executive at (800) 848-4904. Or, get more information about AllRegs and the full suite of products and services by visiting www.allregs.com today.
n Kansas Mortgage Professional Magazine n MAY 2013
l What causes call-reluctance: Start by listing the top three reasons that you personally experience callreluctance. When I facilitate training workshops, I hear a few of the common reasons that sales professionals experience call-reluctance, including:
How do we remedy this? How can we overcome every hint of call-reluctance?
Using Engagement-Based Professional Services to Meet Your Business Needs
Even the best in the business experience days when they don’t “feel” like making prospective phone calls. Some days, the phone looks like it weighs 500 pounds. This apprehension to pick up the phone and reach prospects has been referred to as “call-reluctance.” It can be one of the most crippling mindsets in the profession of selling. If we allow call-reluctance to hold us back, we won’t have calendars full of quality appointments and our sales production will suffer poorly. How do we rid ourselves of CallReluctance? Let’s start with identifying what causes it in the first place.
activity. If we go about the call haphazardly, we will not be prepared and the prospect’s responses could catch us off guard. The result is an ineffective appointment scheduling call and a calendar void of meaningful sales meetings. It has been said, “success is where preparation meets opportunity.”
“A good trainer has been in the origination trenches and should be able to readily adapt to your wishes.”
The Benefit of a Hired Sales Trainer By Greg Frost Sr.
rofessional training is a topic close to my heart. Being a former NCAA athlete, as well as a nationally-recognized loan originator, I have always had a deep appreciation for and have personally benefited from, both group and personal professional training. Being both a production manager and a professional trainer myself, I am also keenly aware that “A prophet is rarely heard in his own village.” I can stand in front of 200 loan originators in a hotel ballroom and move most of them to commit to implement one or more of the tactics, strategies or business building systems, to which I train. But, I’ll be darned if I can get my own eight loan originators here in Albuquerque, N.M. to embrace my teachings. This is especially perplexing because they
MAY 2013 n Kansas Mortgage Professional Magazine n
are in my market and have either watched or are keenly aware of how I became the first billion dollar loan originator in the entire mortgage industry. What is it about a professional trainer that will cause your team to pay more attention than they will to you, and more than likely determine that the training material is beneficial and worthy of consideration? The trainer may well have included several tactics you have suggested many times. However, when a professional trainer presents them, they are embraced. It’s crazy, but true. I have regularly maintained that once I crossed the New Mexico state line, I immediately became an expert and significantly more credible. To better understand this phe-
nomenon, you need to look no further than Dr. Robert Cialdini’s writings on the “Principles of Persuasion” and focus on the principle of authority. When one is presented as an authority and possesses the trappings of authority, one is perceived as an authority. When one is perceived as an authority the psychological principle of “satisficing” (to satisfy and suffice) is embraced by the recipients, causing them to want to believe that what they are hearing will actually help them. Many will still question and even eliminate certain isolated aspects of the training, but most will be accepted as beneficial. What can you do to insure that the message your team receives is consistent with what you want them to be taught? Insist on a content review with your prospective professional trainer. Review your objectives, the proposed material and insist on curriculum modifications where necessary. A good trainer has been in the origination trenches and
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should be able to readily adapt to your wishes. Include time in the training for a commitment session, at which time every attendee vocalizes which of the tactics presented they like and are willing to implement. Get their commitment in writing, as well. Budget for a follow up training, where the trainer returns to interactively focus on your team’s individual implementation of successes and failures. The trainer should be able to share their personal implementation experience with each tactic, identify with the challenges and offer counter measures and “in-flight corrections.” If your team knows beforehand that this is not just a “one and done” training. If they know that the trainer will be back and personally follow up with them, they will be much more inclined to “buy in” and embrace one or more of the tactics presented. If you can get 50 percent of your team to embrace and implement just one successful business building tactic, and if that one tactic results in that 50 percent of your team funding two more loans per month, what is the return on your training investment? Zig Ziglar maintained that, “You can get everything you want in life if you will just help as many people, as you can, get what they want.” Help your team learn new business building strategies by providing professional training; help them commit to implementation; help them recover if/when they stumble with training follow up and watch them help you get what you want. Greg Frost Sr. is vice president of national training for Primary Residential Mortgage Inc. (PRMI). He was the industry’s first billion-dollar originator and has been the number one residential mortgage lender in New Mexico since 1985. He may be reached by phone at (505) 292-7200 or e-mail firstname.lastname@example.org.
“We can train and monitor all we want, but we are not going to know what an originator is saying out on the street in order to help or hurt the cause.”
Training and Coaching Sales Personnel By Dave Hershman
this is called the process of benchmarking. l Monitoring calls: We are observing a salesperson’s behavior. It is up to us to let the other person do the talking—even if we are approached by a person, attempt to defer. Our goal is to observe true behavior (not exactly as effective as having a hidden video or audio tape). Many telemarketing firms do monitor calls blindly for training purposes. l Joint calls: Whether a conference call or a joint sales visit, many of our sales personnel will rely upon us to help them seal important deals. Perhaps you have a previous relationship with a particular client or office. Perhaps you have a great sales meeting presentation that you can deliver on behalf of your employee.
l Are they making calls but not asking for the business? l Are they calling on the wrong targets? l Are they saying the wrong things and turning people off? l Are they too aggressive? l Are they hiding out in a bar all day?
Every salesperson has some type of reluctance. This reluctance could be defined as a type of call reluctance, marketing reluctance or even communication reluctance such as the fear of public speaking. These reluctances can be crippling to the average salesperson and an important part of the manager’s job is to not only to identify this reluctance, but format solutions to help the salesperson overcome this handicap. For example, it is important for a salesperson to stay in contact with previous customers. And the most effective contact in this regard is over the phone rather than sending notes. But if the salesperson has a reluctance to make telephone calls for marketing and/or customer service purposes, this is an issue. The question is: how do you overcome this fear? Before finding an alternative means of communication, there are many tools you can use:
No salesperson can develop into a true relationship star through the use of scripts. Yet, we all know that the secret to great telephone sales and overcoming objections is being
We can train and monitor all we want, but we are not going to know what an originator is saying out on the street in order to help or hurt the cause. Coaching calls will not necessarily tell us what is wrong because we will not see true behavior while we are present. Just because coaching calls will not be 100 percent effective does not mean that they are not important. Basically, there are three types of coaching calls: l Training calls: We send a rookie out on the street with us or have them listen to us handling inquiry calls. They are to observe our behavior. This is a training exercise and the goal is learning. In technical terms—
l By making sure they schedule activi-
This article barely scrapes the surface of training and coaching issues. But it does demonstrate several factors which are important within the process. Training and coaching are serious and important functions of managers and most managers have not been trained to become excellent coaches. Getting the most out of our staffs is an important objective. So is the goal of reducing turnover. In other words—it is complicated and difficult, but worth the time and effort to accomplish in the right way. Dave Hershman is a top author in the mortgage industry with seven books published, including The Complete Mortgage Management Kit. Dave is also director of branch support for McLean Mortgage. He may be reached by e-mail at Dave@HershmanGroup.com or visit OriginationPro.com.
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n Kansas Mortgage Professional Magazine n MAY 2013
here are several reasons why many in the mortgage industry do not hire inexperienced loan officers. The lack of time is one reason. Most managers are personal producers and do not have the time to train. Secondly, identifying the needs of each neophyte is difficult. Not every person needs the same training. For example, someone who is inexperienced may have 20 years of sales experience or 20 years of real estate experience. Their needs would be different than hiring someone from a government job. Finally, the training of sales personnel provides some special challenges because it is difficult to measure the reasons they may or not be producing results. For example, when we train an originator and he/she goes out on the street: How do we know why they are not producing?
prepared with what to say and at the right time. You will facilitate the process greatly by developing standard answers for standard questions. In training, I often jest by saying, “Don’t put the customer on hold while you search for your script.” Scripts do have a time and place— but they do not substitute for real needs assessment and conversational/relationship skills.
ties which they are likely to overlook if they are not specifically on their calendar; By helping the loan officer eliminate obstacles that are being used as excuses for keeping us from doing what they need to do. For example— showing them that their pipeline does not need a babysitter. By pairing up with “buddies” or “coaches” who will give them daily encouragement to take certain actions. By making it fun with contests, challenges and games. These things may be seen as “infantile” by some, but they are really major sales tools. In reality, if they do not like what we are doing, they are less likely to accomplish the task. By helping them be honest with themselves. If they are going to overcome an obstacle they must admit that their call reluctance (and perhaps attitude) is the problem, not all the other things we have been blaming—such as paperwork and the competition.
“According to a survey conducted by Freddie Mac and Roper Public Affairs, six out of 10 homeowners wished they more thoroughly understood the terms and details of their mortgage.”
Leadership and Restoring Confidence in the Community By David Lykken
s I sit back and think about the training programs and initiatives for loan officers in the mortgage industry, it is difficult to write about how to teach salespeople to become better salespeople without first teaching them about leadership. Don’t get me wrong; I believe many benefits can be derived from a good sales training program. But before anyone starts talking about sales training, a different conversation needs to take place. As leaders our industry and community, we need to muster the inward strength and integrity to first address a different kind of training—values training. You start by asking yourself questions like, “What are my values?” and “What the values of my organization?” Recently, I was speaking at a state mortgage industry convention to a large group of mortgage professionals and “Murphy’s Law” showed up. As soon as I stepped on stage, I started experiencing technical difficulties. My laptop wouldn’t communicate with the projector. As I quickly tried to resolve the problem, I could feel some restless tension begin to stir in the room. Knowing the importance of keeping the attention of the audience was way more important than getting the presentation working, I made the decision to just set the laptop aside with all my notes and slides and just started visiting with everyone in the audience as if they were sitting in my living room. I began to speak from my heart about two topics I am so very passionate about, LEADERSHIP and VALUES. The technical difficulties I experienced turned out to be the most convenient inconvenience that could possibly have happened because I began to expound on what I think is the most pressing leadership issues in the mortgage industry today. I spoke from the heart about the importance of homeownership and how integral it is to our economy. By this time, an
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audio/visual person fixed the problem and I was able to step back into the slides I had prepared. It was perfect timing. The slide that first came up in my presentation was a slide that showed how the level of homeownership had fallen to alarming new lows. The trend lines were showing how we were fast becoming a nation of renters. At another conference where I was the keynote speaker, I asked the audience to raise their hands if they thought they could afford to buy a new home in the next few years. The vast majority of people in the audience raised their hands. Then, I asked another question. “How many of you,” I pressed, “actually plan on buying a home within the next few years?” Like a receding tide, over half of the hands slid slowly downward—confirming the data on the slide. Fewer and fewer Americans plan to buy a home in the near future. Why? As I ask more and more people that can afford to buy homes, as to why they are not doing so, I consistently get the same answers: l Because, I don’t see the benefits in owning a home. l It is a long-term financial commitment, and I honestly don’t know if my income will remain at this level or if I will even have a job this time next year. l In spite of homes be very affordable, I don’t want to run the risk of losing my home to foreclosure … I’d rather play it safe and rent. This fear of being foreclosed on pervades our culture today. Since the end of 2006, the U.S. has added 4.8 million renter households and lost 1.7 million owner households. Just as this trend began, a survey by Harris Interactive of 1,334 U.S. homeowners revealed the following answers to the question, “If home foreclosure were likely for you, what best
describes how you would feel?” Here are the results: l l l l l
Scared (38%) Depressed (35%) Angry (9%) Embarrassed (8%) None of the Above (9%)
The Mortgage Banking Association (MBA) estimates that roughly one million new families each year enter into foreclosure, and that one out of every 200 home purchases will end in foreclosure. This trend is a systemic problem that feeds on itself. When homes are foreclosed, fewer people buy. Prices rise and more foreclosures occur. It’s a vicious cycle filling the country with fear. When people lose their homes, they aren’t just losing houses. They’re losing a piece of their foundation/roots. They are losing a sense of stability and confidence in the future. During a brief period of insanity, from 2001 to 2007, many mortgage professionals enabled buyers to buy homes they could not afford and failed to properly educate them on what they were getting into, much less how to make responsible homebuying decisions. Those who didn’t participate in the insanity did little or nothing to try and stop the madness. If you have ever heard me speak at a conference, you will hear me make this statement, “When we fail to regulate from within, we will be regulated from without.” The Consumer Financial Protection Bureau (CFPB) is all the evidence we need to realize just how painfully true that is. Great leaders don’t need regulation. They are built with internal regulation. They have integrity instilled in their core that emanates from their being. Those are the mortgage professionals we need rising up in the industry. Those are the loan originators we need in the field. We don’t need people selling houses, but need people to teach others how to responsibly buy homes. Only when that happens will we see the industry bounce back. Why complain about the regulation? Instead, let’s turn it on its head. Let’s set the bar even higher. Let’s become teachers. According to a survey conducted by Freddie Mac and Roper Public Affairs, six out of 10 homeowners wished they more
thoroughly understood the terms and details of their mortgage. Moreover, even more than six in 10 homeowners who were delinquent were not aware of the programs offered by lenders to help them find solutions to paying their mortgages. What does this tell us? Two very important things: l Buyers are not properly educated; and l Buyers want to be more educated. That’s where great leadership in the mortgage industry comes into play. How do we alleviate the fear? How do we restore confidence to the marketplace? How do we turn this thing around? The solution, as with many other things, lies in education. We need to work with local builders to create programs that foster a more educated community of homebuyers. We need to take the responsibility of making sure people know what they’re doing when they enter into mortgage contracts. We need to teach people financial/fiscal literacy. People need to understand what they can and cannot afford and why. People need to understand how interest works. People need to understand how property taxes work. And we can no longer have a “that’s for us to know and you to find out mentality.” We must take responsibility for our customers’ understanding of the mortgage finance industry. If they don’t understand how it works, it isn’t because they failed to learn; it’s because we failed to properly and effectively teach them. I believe that the future leaders in the mortgage industry will be those offering seminars and workshops through local churches, community centers or libraries to teach the public how to manage their finances, especially as it relates to buying a house. The more educated homebuyers are, the less fearful they will be in entering market. People are afraid a great deal because they don’t understand how mortgage finance works. Let’s take that fear off of the table and teach them! We need to remind people of the benefits of owning a home. More and more, as the market recovers from the recession, people are beginning to be able to afford homes. But we still need to remind them why they would want to own a home in
the first place! We need to remind them that, according to research done by Ohio State University for the Journal of Housing Research, homeowners tend to be healthier—mentally, emotionally, and physically—that homeowners tend to have higher participation in civic life and that children of homeowners tend to reach greater levels of academic performance. In short, we need to remind people that owning a home is a good thing. Almost everyone knows the Biblical story of David and Goliath. Most people view it as an underdog story—the small boy David taking down the giant Goliath with nothing but his faith and a single stone. But there’s more to the story. It’s
also a story about fear and how unrealized leadership can overcome it. Most think David killed Goliath with a single rock slung against his forehead, but in reality, it was that he believed in something beyond himself. As a result, he overcame “giant” odds and turned the tide of that battle. David probably didn’t see himself as any kind of leader, but the net effect was that he demonstrated more leadership than the entire Israeli army. What amazes me is how the Israelites— his people, who moments before were “dismayed and greatly afraid,” reacted to the victory. The Bible says in 1 Samuel 17:52, “The men of Israel and Judah arose and shouted and pursued the Philistines
…” Just like that, the fear was gone. How? David restored confidence through a single act of bold confidence in the face of seemingly gigantic adversity. Just as David restored confidence in his people, we must restore confidence in homebuyers across the nation. All it takes is the strength of character to step up and do what no one else is doing. It’s time to become leaders by educating Americans in the basics of financial management and responsible homeownership. Mortgage professionals are the “Davids” of today, and homebuyers are the Israelites. Fear is the Goliath of the mortgage industry and education is the stone that slays it. Go forth and lead your people into home-
ownership and achieve success regardless of what market conditions. David Lykken is president of mortgage strategies and managing partner with Mortgage Banking Solutions. He has more than 35 years of industry experience and has garnered a national reputation, and has become a frequent guest on FOX Business News with Neil Cavuto, Stuart Varney, Liz Claman and Dave Asman with additional guest appearances on the CBS Evening News, Bloomberg TV and radio. He may be reached by phone at (512) 977-9900, ext. 10, or e-mail email@example.com or firstname.lastname@example.org. 53
n Kansas Mortgage Professional Magazine n MAY 2013
“Creating a training course may seem like a daunting task, but it’s really very simple.”
Unleashing the Trainer in You: 10 Easy Steps to Creating a Course By Ginger Bell
“If I had eight hours to chop down a tree, I’d spend six hours sharpening my axe.” –Abraham Lincoln ith the Consumer Financial (CFPB’s) focus on compliance management systems and the increasing need to provide training to personnel outside of the standard continuing education for loan originators with the passage of the SAFE Act in 2008, our industry has had to look to means to create effective training. Whether you are a subject matter expert (SME) creating a course on “Completing Correct Disclosures,” or a loan originator looking to provide education to your real estate agents and partners, we all begin at the same starting place—a blank sheet of paper. The reality is that we all have something we are really good at. Whether it is specializing in VA loans, marketing or underwriting, you have information you can share with someone else. The challenge lies in how you go about creating a presentation, course or video that shows someone how to do what you do or know. Creating a training course may seem like a daunting task, but it’s really very simple. If you follow these 10 simple steps, you’ll be on your way to creating a successful course that will allow you to take your expertise and hold a realtor presentation, develop an entire curriculum to place into a learning management system or write a continuing education course.
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Step 1: Prepare yourself l Begin by educating yourself by reading and researching articles about your topic. This will help to provide supporting documentation and information to support your knowledge. l Create a file folder on your computer where you can gather information
material that includes case studies, Step 4: Determine how to assignments and corresponding deliver materials items. l Determine which materials should l Include material for all learners and be delivered in the face-to-face cominstructional methods that address difponent of your course and which ferent learning styles and preferences. materials can be delivered online if l Write the course description providyou are using an online model. ing a brief introduction to what you Select items that are relevant to your will be covering in the course. course objectives and will also provide for the best learning experience Three Hours 2012 Update to Federal for your students. Mortgage Laws: Course is intended l Prepare your materials for both faceto provide the student with an to-face and electronic delivery. This understanding of the major changes may include scanning graphics, crethat were implemented from 2009 ating files, developing activities, case and 2011 that industry professionals studies, tests and slides. need to be aware of in the day-tol Avoid delivering materials that will day performance of work and/or to distract the student from the course prepare to take and pass the MLO objectives. Don’t add irrelevant SAFE test. information to “fill-up” your time.
to use as a reference and guide for writing your course. l Determine how you will deliver the course. Will it be online, live or both. l Make sure you have the right software to prepare your course. Will you be presenting live to a group? Will you be creating a video to embed on your Web site or YouTube? Will you be conducting a live Webinar? Will you be creating an online course to be presented in a learning management system (LMS)? l Write the course learning objective. Face-to-face best practices Often, you can repurpose your inforThis will help you as you develop the l It is important to use a variety of mation into a variety of delivery course and help you to make sure teaching and learning materials in methods. you have reached your objective. your face-to-face sessions to help l If you are going to have your course Including a timeline for each objecmeet the intended learning objecapproved for continuing education, tive will help you to focus on how tive. You’ll want to include audioyou will want to research how to do much content you will need to visual aids, tasks for students to that with the governing authority. include in each section. complete and handouts. The most effective face-to-face course includes Step 2: Prepare your Learning objectives explanation, demonstration and materials n Understand the requirements of practice. Interaction and participal Gather your course materials and the Federal SAFE Act and its impact tion in the course will promote content in a central location. on the industry. 30 minutes learning, engagement and retention. l Include items such as handouts, n Review the major changes to Be sure to use demonstration and slides shows, syllabus, lecture notes, RESPA and how they impact the practice of what you are teaching. projects, assessments and discussion MLO. 30 minutes Simply explaining how things are points. n Compare and contrast the old and done will not enable the students to l Determine the formats of your matenew Good Faith Estimate and learn the skills. Be sure to use examrials. Take notes of items already in know how to complete the form ples, emphasize or dramatize your electronic formats such as Word docand explain it to consumers. 30 ideas and use open format to prouments, spreadsheets and slides. minutes mote questioning. Include pop l Accommodate different types of n Understand how Yield Spread quizzes and fun activities and learners. Make sure visual learners Premium (YSP) is used on the new resources in your face-to-face have graphics. Provide narration and GFE and know how to explain it to course. Keep details on your slides to text for verbal learners and include consumers. 15 minutes a minimum and use a handbook for projects to keep students active and n Become familiar with the changes students to refer to more in-depth engaged. to Reg Z and its impact on mortdetails and activities. Allow room for l Identify measurable course objecgage loan origination. 45 minutes note taking in the handbook. tives. Determine if there are core competencies and knowledge stu- l Make sure to include tools in your Electronic delivery best practices dents will need to meet these course using the following learning l You will want a mix of delivery objectives. modalities: forms. This will include starting • Visual: Seeing pictures, words, diagrams with text and including short Step 3: Make an outline • Auditory: Listening to explanations recorded sessions, brief case studl Make an outline. Be sure to use • Kinesthetic: Performing the activity ies, interactive activities for stu-
dents to perform online including word matches, fill in the blanks and short quizzes. Providing a mix of delivery methods will help to keep your student engaged. If you are working with a system administrator, they may suggest how they want the material delivered. Important note Try to avoid putting all of your information on slides and then reading the slides. This is an easy pattern for speakers to fall into, but one of the least engaging and least effective teaching methods.
Step 5: Build a course skeleton
Main folder–Three-Hour Federal Regulations Class 2013 n Subfolders n Research n Online Course n Older Versions n Text Document n Case Studies n Tests n Activities n Recordings n Slides n Face-to-Face Course n Older Versions n Text Document n Case Studies n Tests n Activities n Recordings n Slides
Step 6: Write the course
Course consistency checklist n Layout of course is visually and functionally consistent n Navigability is clear, simple and user-friendly n Spelling and grammar are consistent and accurate n Written material is concise n Language of written material is friendly and supportive n Clear directions are given for each task or assignment n Sentences and paragraphs brief n Research material is referenced n Visual aids are properly used n Course objections and timeline are met
l Whether you are delivering your course live or online, it’s important to use tools that engage your students, such as videos, test questions, activities and group discussions. l Locate five to 10-minute videos from credible sources to add to your faceto-face courses. There are a variety of tools available to embed videos into your slide presentation. Make sure to give proper credit for any videos you add. Add the link to your slides so you can easily remember where you got the information.
Step 8: Develop activities for the course l It is important to add activities to your course to keep the student engaged and learning, such as the following examples. Activities to enhance student learning (Addresses multiple learning styles) n Video clips of interviews n Historical audio clips of famous speeches n Screen animations for instructional exercises using software n Personal interview reports n Crossword or word search puzzles n Matching and game-show-style trivia games n Online scavenger hunts n Annotated bibliography n PowerPoint presentations as assignments/quizzes n Flash simulations Activities to develop critical thinking and problem-solving skills n Discussions center on questions without a single correct answer n Compare and contrast exercises n Case studies n Critique classmates’ assignments n Collaborative exercises n Portfolios (building one activity upon another) to share/peer review
Step 9: Develop questions and tests l If you are developing a course for continuing education credit, you will probably need to include a final exam. Check with the licensing board or regulatory authorities on what the requirements are for final exams. l Start at the beginning of the course and start developing questions. You’ll want to make notes on where in the material the answer lies for future reference. You may also need to note this information when you get your course approved for continuing education. As you write the questions and answers, you’ll want to think of the most probable answers that are close to being correct but are not in fact correct. Be sure to include reference material and reasoning so students will know why the answer they selected was correct or incorrect. Developing questioning in the course The effective use of questions is one of the most difficult but effective methods for promoting learning. The skillful use of questions can achieve the following results: n Questions can stimulate interest and motivation n Questions can use learners’ knowledge for the benefit of the group n Questions focus thinking skills and the practice of thinking skills n Questions encourage the development of self-expression of thought and feelings n Questions can be used to assess student knowledge and understanding Key tactics in developing questions l Make the questions clear and brief. Just ask one thing at a time. l Pitch questions at the right level for the individual or group. Be sure to use language the student can understand.
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l Now that you have your course outline, objectives and research, you can begin writing. First, write the course completely in text. Then you can pull the content out into shorter videos for your online course and build your slides for your faceto-face course. Be sure to use references for your research. The course consistency checklist below will provide a guide for your course development.
Step 7: Incorporate technology into the course
l Create the organizational (or skeleton) structure of your course. This involves creating a series of clearly labeled folders that will hold the course materials. l Make a folder for every item in your outline (from Step 3) or mimic the structure of your course outline. l Enter the course information area and create subfolders for your outline, slides, case studies, tests, activities, etc. Be sure to note where you obtained information from your research in your course. This will help to build credibility in your course and provide reference notes for course evaluators if you are planning to get your course approved for continuing education. Be sure your folders and subfolders correspond with the main topics sections of your course. If you are providing both online, electronic training and face-to-face training, you’ll want to have a folder and subfolders for each of these as your delivery methods and content will be different for each. When creating your subfolders and subtopics, be sure to name each for easy reference in the future. Also date each file when you update information and put older versions of your information in a different folder. Be sure to date each version so you know you are working with the
most current information. When naming your folders use this example:
l Choose the right type of questions for your purpose. For example; open questions for exploration; closed questions for a focused response. l Provide enough time for the students to answer questions.
Step 10: Pulling all the pieces together Hereâ€™s what you have accomplished so far: 1. Prepared yourself and completed your research. 2. Created your outline, course descrip-
tion and objectives. 3. Determined your delivery method and built your course skeleton. 4. Wrote your course using text, videos, activities and questioning. l Now itâ€™s time to review your information and make certain you are meeting your original outline, timeline and objections. l Review all of your course material. Verify your reference material, check your links, proofread your descriptions and view the course from the studentâ€™s perspective.
l Prepare all information for deliveryâ€“ upload course content into your online learning system and print your materials for your face-to-face delivery. l Teaching can be a valuable tool to position yourself as an expert in your industry. The key is successful planning, preparation and delivery. All of us teach! We teach our kids how to tie their shoes or show a processor how to input data into a loan origination system (LOS). Weâ€™re all trainers. Sharing that information
is critical, and creating a presentation or course to do that doesnâ€™t have to be intimidating. It just takes time and a little practice! Ginger Bell is a best-selling author and the national training director for Plaza Home Mortgage, with expertise in developing and implementing training programs and speaking on mortgage related topics. She recently joined forces with best-selling author and speaker, Brian Tracy, and other successful business professionals to publish the best-selling book titled Cracking the Success Code.
MAY 2013 n Kansas Mortgage Professional Magazine n
weâ€™re committed to brokers! Markets may be volatile, but thereâ€™s one thing you can always count on, the total commitment of our Mortgage Te eam. Loyalty, continuity of service and our dedication to protecting the integrity of our relationships are just a few of the things that set us apart. Ridgewood understands the needs of its communities and develops speciďŹ c product beneďŹ ts to meet those needs. t+VNCP.PSUHBHFT"W WB BJMBCMFVQUP.JMMJPOPOUP'BNJMZ $PPQTBOE$POEPT t/P"EE0OUP*OUFSFTU3BUFVQUP.JMMJPO t-PBOT.BEFUP#BOL"QQSPWFE--$TBOE5SVTUT t0OMZ0OF"QQSBJTBM/P.BUUFS8IBUUIF-PBO"NPVOUPS1SPQFSUZ7BMVF t6QUP.JMMJPO$BTI0VUPO1SJNBSZ3FTJEFODFT*
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A Member of the New Yo ork Associattion of Mortgage Brrokers
“By treating your business like a franchise and setting up systems for success, you’ll foster happy customers and a solid referral flow.”
Stop Getting in the Way of YOU— Build Systems for Success and Prevent Self-Sabotaging Behaviors By Kelly Resendez
The first step in achieving your goals is to set up systems that set expectations for your customers, automate regular communications, and encourage referrals. Think of your business as a franchise where you could bring someone else in from the outside, train them on your system, and have them be just as successful as you. So many professionals fall into the trap of getting caught up in the day-to-day details, which leads to burnout and hampers creativity and energy that could be spent on growth. Here are the basics you need to systemize and streamline your processes to allow yourself more time be a bet-
l Maximize opportunity: Customers have many options when shopping for mortgage products and you have to be ahead of the curve. Utilize profile sheets and gather the information necessary to best guide your client. Create a personal connection; e-mail loan proposals to every customer, mail personal notes 100 percent of the time to your referring party and new customer, and add them to drip campaigns and schedule follow ups. Be organized and use your calendar to remind you to call your customers back–if you don’t
Goals, goals, goals Now comes the fun part! By now you’re treating your business like a franchise, you have systems in place to ensure
n Kansas Mortgage Professional Magazine n MAY 2013
Foundation for sustainable success
ter real estate professional and build your business:
handwritten note is always appreciated, and be sure to send along business cards that they can give to potential clients. Then, include them in your ongoing communications processes. It could look something like this: • Mailed a thank you note after the transaction • Add to newsletter drip and e-mail monthly • Add on social media and post updates weekly (this will keep you keyed into big life events that may warrant a new mortgage product, such as marriage, retirement, new baby, etc.) • Follow up call 45 days after funding, and semi-annual phone call • Send physical mail quarterly (post card, flier, etc.) • Don’t forget to thank your real estate agents and ask them for referrals
hat is standing in the way of your success? Do you want more clients? More referrals? Do you want to build better relationships with those in your field? What’s holding you back? When I ask real estate professionals these questions, the answer I almost always come to find is … you. Most of us have goals we’d like to accomplish, but many times, our own perceptions, inaction and quest for perfection gets in our way. Additionally, we don’t set up systems for success and try to treat each customer’s needs as they come in fits and starts. To overcome these self-induced challenges, I implement in my team a two-pronged approach to get them moving from intention to action, setting up processes that are applied to each and every one of their customers. Not only will this approach lead to a more successful business, the lessons learned can be applied to almost every aspect of your life.
schedule it, you’ll likely forget it. l Manage your pipeline: Starting at the beginning of the transaction, set expectations that you can meet or exceed (under promise, over deliver). Most customers understand that obtaining a loan can be difficult, and are looking for a loan officer to be open and upfront with them about potential hurdles. Create a calendar for your files when your clients go into escrow and hold yourself accountable to communicating during important milestones in the transaction, such as contingency removal, appraisal due, loan approval, target signing day, and funding. Fight the urge to hide your head in the sand when the news isn’t perfect–communicating is completely within your control while the rest of the transaction often isn’t. l Work your database: If you do a great job of obtaining customers and communicating with them throughout the process, you’ll likely have no problem receiving referrals–that is, if you ask for them! It all starts with the initial thank you after closing. A
consistent communication with your customers, and you have a good referral flow coming through. In order to take your business to the next level, it’s time to take a hard look at your goal setting process and how you may be sabotaging your own efforts.
It starts with a plan What are your intentions, goals, or vision? If you have these in place, do you have a roadmap to get there? And how do you measure your success or progress? Many people don’t even bother making goals for many reasons: it’s too scary, they feel they won’t achieve them, or they feel they don’t
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have the time. But goal setting in a vital exercise in creating the life you want by taking the time to really know what you want and why. Start with your values: What do you value in life? What motivates you? For most of us, we create goals that aren’t specific, are too much of a stretch, or are solely driven by competition. These goals set you up for failure. Take the time to really think about your values and write them down. I like to use a grid that lists them into categories: business, financial, health/personal, and family. Now, how do these values play into each category? Within each category, I cre-
ate short- and long-term goals for each item and have a list of three activities associated with those goals that I will take within three months and one year. This allows you to break your goals into smaller, achievable action items and keep you motivated and on course.
Ready, set, goal! Now that you’ve detailed your goals, it’s time to start acting on them. Set deadlines with calendar reminders, find an accountability partner that you can meet with periodically to check in on your progress, or create a visual associated with your goals and post it in places that you’ll consistently see (phone backgrounds/lock screens are a great place for this). Surround yourself with reminders of your goals so they stay top of mind. And recognize yourself when you achieve milestones! By celebrating completed activities or even attempts to complete them, you’ll get a sense of fulfillment that will keep you motivated.
Stop getting in your way There are many excuses why people fail to reach their goals, and most times it comes down to themselves. We can be our own worst enemy, giving ourselves every reason to abandon our goals when it doesn’t go our way. Here are the biggest barriers that people create that inhibit them from reaching their goals: l You seek perfection: Are you waiting for things to be just right before you act? Are you an all or nothing person? The truth is that there’s never a perfect time or circumstance for most events in life. Perfection is not necessary for success. No one is really going to notice or care that everything is perfect, so it’s better to aim for imperfection than unfeasible perfection. l You’re paralyzed by fear: Many people live their lives in fear of the “what ifs.” We can imagine negative situations in our minds so vividly, it’s almost like they’re real. However, these thoughts are not real; they’re hallucinations of our own creation. They usually lead to inaction, which can cause not only more worry, but often potentially negative situations to escalate. To stop this negative cycle, start testing out your
biggest fears. Let’s say you’re afraid to give a customer bad news. What’s the worst possible outcome you can think of? What’s the best? What’s the likely outcome? Now, write these down. Then push yourself–face your fear, call your customer, and deliver the bad news. What happened? Most likely it will fall somewhere in between the best and likely outcome–nowhere near our imagined worst-case scenario we created in our thoughts. In addition, try doing something uncomfortable or that you fear every day. Whether it be waking up early to go to the gym or starting a conversation with someone that intimidates you–pushing yourself to fight off your hesitations will condition you to take on life’s challenges and can potentially lead to opportunities you never dreamed of. l Don’t beat yourself up: Many times, we dwell on our mistakes and run a cycle of negative commentary in our minds. Have compassion for yourself and the mistakes you made. We are quick to compare ourselves to others and judge ourselves as failures – but one universal truth we neglect to remember is that everyone makes mistakes and everyone fails from time to time. Learn from your mistakes and move one without knocking yourself around in the process. You have all the tools you need to create the business you want. By treating your business like a franchise and setting up systems for success, you’ll foster happy customers and a solid referral flow. Once that’s in order, take the time to find your values, create your goals, and eliminate the barriers you create that prevent you from being successful. You are in control of your success – now you just have to go out and get it! Kelly Resendez is senior vice president of business and sales development for Paramount Equity, assisting with mortgage originator recruitment and training. She studied economics at California State University Sacramento, and is currently completing her degree in psychology at University of Massachusetts Lowell. She may be reached by phone at (916) 290-9999.
“With increasing regulations in the mortgage industry and the stress associated with rapidly implementing the mandated changes, it is often difficult for employees to stay motivated.” —Judy Wheatley
Learning Event Strategies To Enhance Motivation
“Finding the right mix of tools and making them easily accessible can inspire learners, promote the pursuit of knowledge, and increase the training’s effectiveness.” —John C. Cunningham
tle time for a project of this scope nor is there room to even layout the pieces. It will not be long before the excitement and motivation wanes. Overreaching is almost always demotivating.
By Judy Wheatley & John C. Cunningham
Enhancing motivation during the learning event
The key to any effective initiative is a good strategy. In a sense, this means having all your “ducks in a row” before
One key to inspiring motivation and delivering a successful learning initiative is to trust your preparation and follow the plan. Flexibility is important, as is identifying the spontaneous teaching moments. But sticking to the plan and not getting seriously sidetracked is going to go a long way in motivating your learners. Remember that you spent a good amount of time during the pre-learning event identifying the key objectives and planned accordingly. In the midst of the actual learning event, assessing how motivated your learners are (especially for remote learners), is very important and a few tweaks to the plan are fine. But, overall the instructors need to trust the strategies that were chosen. Another method of enhancing motivation in the learning event is to use as many of the engagement and interactivity tools as you have available. Almost every training vehicle has interactivity tools which are available to maximize both engagement and motivation. Whether you are taking advantage of WebEx features such as polling or chat, using gamification features in an e-learn-
Enhancing motivation during the post-learning event In order to keep employees motivated and to measure the value of the training event, there must be follow-up activities and tools to reinforce the learning. Sometimes it is not easy to measure effectiveness. For example, diversity training is more difficult to measure than skills based training. However, if learning is aligned with business needs and applicable tools are used, companies can calculate their return on the training investment. The place to start your post-training event is with a participant survey evaluat-
n Kansas Mortgage Professional Magazine n MAY 2013
Enhancing motivation during the pre-learning event
the learning event occurs so that learners can be actively involved in a meaningful educational experience. The pre-learning event process begins with identifying the learning objectives. Any event provided by the organization, including training, must have relevant goals. One of the most frustrating, as well as de-motivating experiences for an associate, is to be involved in an initiative where learners do not know or understand the purpose. This leads to confusion and resentment when they are asked to spend time they could otherwise use getting their work done. Thus, making certain that each and every training event is meaningful, worthwhile, and appropriate to all of the learners is a top priority. The next step is to select the most suitable learning vehicle to support the objective. Remember, the aim is to create an educational initiative that will motivate participation so the tools selected are critical. The event could employ a variety of different tools during training, or just one single tool. Finding the right mix of tools and making them easily accessible can inspire learners, promote the pursuit of knowledge, and increase the training’s effectiveness. Arguably the most important component in this strategic process is to be aware of the parameters of the initiative. One of the biggest mistakes educators make is that they forget or simply ignore legitimate constraints. These can include company guidelines, time restrictions, limitations on technology or educational vehicles, and remote participants. Failure to take these into account can be an error in judgment permanently impeding the motivation and pre-planning process. This can be demotivating. A simple analogy can be helpful here. Suppose a person takes on the challenge of assembling a 1,000 piece jigsaw puzzle. But, in the excitement of the moment, they fail to realize that there is far too lit-
rederick Herzberg, a pioneer in employee motivation, taught that an employee’s opportunity to learn, grow in responsibilities, and be recognized for achievements is a much more powerful motivator than just money. With increasing regulations in the mortgage industry and the stress associated with rapidly implementing the mandated changes, it is often difficult for employees to stay motivated. In fact, all the change can end up being very debilitating for employees as they restructure their work processes and procedures to meet regulatory and business deadlines. Designing innovative and motivational learning events can, however, be a powerful aid for employees, helping them to see their role in the company’s future. Corporate learning can guide them to optimize their performance, and ultimately enhance their satisfaction with the organization. Successful learning inspires and motivates employees with three elements: Prelearning, learning and post-learning. It starts with careful planning during the pre-learning phase. This entails a variety of factors, including an assessment of the needs of the organization. The learning event itself must be balanced and flexible enough to follow a predetermined plan, but at the same time it must be able to take advantage of “teachable moments” which arise spontaneously. Post-training events are an essential component of successful learning. They reinforce the training and are important to provide continuing motivation and for further supporting the concepts presented in the learning event.
ing course, or presenting your “stand-up” facilitation session energetically, these individual engagement tools are invaluable in initiating and maintaining maximum learner motivation. A good rule of thumb regarding the heightening of motivation during the learning event is to balance information and activity. Keep in mind that even though pure information is extremely valuable and a significant part of the learning event process, it is not the part of the training which always promotes maximum engagement. The activity portion is the part which generally does that best, and the key to any activity is the effective use of the appropriate motivational tools.
ing the learners’ first impressions and helping to identify ways to improve the event. Companies need to provide an anonymous method for participants to submit their opinions on the presenter, material, timing, methodology, and perceived effectiveness or utilization of the training. Survey results need to be quantified and reported to management. Making learning available anytime and anywhere is a critical way to reinforce the specific learning and keep employees motivated. One approach is to provide the course content online for participants to reference. Video recording a classroom session is another effective method. Elearning approaches continue to mature
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and many companies use podcasts, learning in motion, or blogs to share information and support on-going learning. Skills-based training should include tools such as job aides that employees can use in their day-to-day functions, allowing them to practice the skills they have learned. Monitoring employees’ performance with the use of assessments done at various intervals after training is a good way to measure the effectiveness of the training event, as well. One-on-one mentoring sessions are also important to reinforce learning events. They help to keep employees motivated because mentoring demonstrates a company’s commitment to an
Training is an investment
interactive will yield more motivated associates and a high rate of return on the company’s learning investments.
Learning events that are carefully designed to be meaningful, worthwhile and appropriate will have many benefits for your company and employees. Greater motivation will lead to an increase in productivity and a reduction in staff turnover. The best types of events take into account that people have different learning styles. Some employees learn best by listening, some by seeing and others by experiencing, but most learn best through a combination of these styles. Learning events and post-training activities that combine these styles to be engaging and
Judy Wheatley is senior vice president of compliance for Indecomm Global Services. Judy received her Certified Mortgage Banker (CMB) designation in 2003, and her Accredited Residential Underwriter designation in 1993. She may be reached by e-mail at email@example.com. John C. Cunningham holds the position of education coordinator of the Lenders Solution Group for Indecomm Global Services. John is also a Results Coach, having received his training at Coach U. He may be reached by e-mail at john.cunningham@Indecomm.net.
employee’s development and success.
“Much too often we wait. We wait until something seriously bad happens before we start to realize what’s going on.”
You Can Let Your Teeth Rot or Recruit New Loan Officers ... Your Choice By Ralph LoVuolo
With more than 45 years in the mortgage industry, Ralph LoVuolo is president of Mortgage Motivator, a consulting firm on the cutting edge of the mortgage business. He may be reached by phone at (561) 509-8425 or e-mail firstname.lastname@example.org. 61
Get ON BOARD With The BEST MORTGAGE LENDER
In the Nation! For Branch opportunities call 877.896.8496
www.mpfunding.com Real Estate Mortgage Network Inc, DBA Menlo Park Funding. 499 Thornall Street 2nd Floor, Edison, NJ 08837. NMLS# 6521
n Kansas Mortgage Professional Magazine n MAY 2013
ing about his teeth and the pain he was suffering through. “When are you going to the dentist,” she asked. “I’m going soon. I just hate the pain while I’m in the dentist’s chair.” “Well,” she said, “If you had just flossed every day like you were told by your mother, you wouldn’t be suffering right now.” “And what about you,” he asked? “Do you floss every day?” “Are you crazy,” she retorted, “I’m too old, nothing I do is going to change these teeth.” “So wait a minute, you’re telling me to floss every day, and in fact, if I would have done it every day, I wouldn’t be having this pain; but you’re too old? I think this conversation is over. What you’re saying doesn’t make any sense.” To me, this entire conversation didn’t make any sense. I was observing the American attitude. The standards that most of us live by. Let’s not make a plan. Lets not really put any thought into the future. We all hate meetings, let’s just keep doing what we’re doing. A good friend of mine had a mortgage brokerage company that had about 20 sales reps. Yet he had one person on the payroll whose fulltime job was to ensure that every active LO had to bring in one business card a week of any LO that they determined was their competition. The person on payroll assembled a file on these competitors and the president of the firm made at least one call a day to recruit one of those people. The tenor of the market didn’t matter. This was done every day of every month of every year. Right now there is so much scrambling to figure out a plan to recruit LOs, that I am astounded. Don’t we ever learn? In fact, I saw one com-
you would want a company to offer you if you were a successful LO. Then, see what your budget will allow you to enact. Here is what I promise you … if you don’t start a recruitment plan now, your teeth will rot.
kay folks … what are you going to do now? What are you going to do to increase your business? What’s your plan? What great ideas did you put in place to get you through 2012. What’s your five-year plan? What do you absolutely know? What did you know in November that you could have enacted this year that would have helped you? What I’m finding from this vantage point is, very little. Much too often we wait. We wait until something seriously bad happens before we start to realize what’s going on. Ever notice how often we drive by a spot on one of our streets and say to ourselves, “This is really a bad spot. There really needs to be a speed bump put in here. I’ll call City Hall when I get home to let them know.” Meanwhile, we’re on our cellphone talking to someone, even mentioning what we just thought. Then we drive a couple of blocks and forget. I’m seeing so much chatter about how to increase business. Last year, it wasn’t a problem. Refis were abound and even purchases were fueled by rates that challenged the floor. One of the most often discussed ideas is to start to poach on the company down the street and get their loan officers to see our light. The light we shine is brighter than the light shining from the other companies. We have better service. We like our people more than they do. Don’t we ever learn? Why didn’t we have a recruitment plan in place all along? Around the year 1993, I was consulting at a mortgage company in Brooklyn, N.Y. One of our part-time LOs was an older woman. She was standing next to the desk of another much younger LO. He was complain-
ment in an often read blog that eluded to the fact that it is too late to put a recruiting plan into place. Too late? Too late? If it’s never to late to start to floss, which I am pretty sure you’ll agree with, it’s never too late to begin to put any well thought-out plan in place. And to use the same reasoning over and over that we hate meetings because it takes us away from what we’re doing is just as ludicrous. Have a meeting. Include the top brass. Make a list of your company strengths and weaknesses. Make a third list that states what it is that
Increase Your Monthly Funding Volume With These Simple Steps BY
ow do I increase my conversion rate on the lead I purchase? This is the top question I am asked on a daily basis. So, I thought I would post directly to that question. These are common best practices and will be reiterated by any successful sales organization and lead provider. However, the difficulty is having the discipline (or the lead management system) to consistently enforce these best practices.
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Although we all want to be applications “Know what is An application and one-call closers, this is simply not a reality. In fact, quote is free, so take going on. most consumers close applications and give You need to somewhere between the them often. Consumfifth and 10th call. If you ers are looking for the know your are only calling on those price and commitmarket, your fresh leads each day—you ment. Withholding are losing deals to the the price so that “the competitors, competitor. This happens customer doesn’t shop and what is for a variety of reasons: with me” is bunk. If People are busy, their causing people you don’t tell them Be informed needs can be complex, to have a need the deal they will get Know what is going on. You need to their final decisions may from you, they are for your know your market, your competi- require input from a guaranteed to go to tors, and what is causing people to spouse, etc. the competitor. product(s).” have a need for your product(s). If Consumers want conyou have a large number of prod- Ask questions venience, not games. ucts, educate yourself and simplify and listen If you are still worried about your presentation by segmenting This seems intuitive, but how many times shopping, use the application and products by potential consumer have you heard a salesperson so revved quote process to build trust. Educate needs. up on their canned pitch that they are them on all of the tricks and hidden In addition to understanding what talking past the potential customer. Make fees or gimmicks the competitor is you are selling, make sure you read sure that you start with questions and a going to pull, and when they do, and watch what is going on in the needs assessment and close with confir- they will run back to you and be a news. Consumers want to feel like mations of these needs. This is guaran- trusting customer and referral for there is a human on the other end of teed to increase your closings! life. the sale. Read the front page, the sports pages, and the entertainment pages of the newspaper or your favorite news sources on the Web. People love to talk about the weather, so be sure you know what it is going on outside of your cubicle.
Contact quickly Consumers, especially Internet consumers in this age of high-connectivity, expect an immediate response. Unfortunately, on the sell-side of the equation, consumers also expect to transact at their convenience. Consequently, you need to immediately respond to each new lead receipt with an immediate message to the consumer that you are attempting to contact them. This is easily done with an introductory email and phone call (voice mail). This introduces your company, what you have to offer and your ability to meet their needs.
The bottom line: Follow-up, don’t lose customers and satisfy needs As your pipeline gets larger, it gets harder and harder to manage this bottom line. That is why I generally recommend a managed pipeline of no larger than 100-150 leads. This ensures that you are able to contact every consumer in your pipeline at least once every 48 hours, assuming you are hitting my recommended call velocity of 60-80 calls per day. The management of the pipeline, call backs and annotating consumer needs all point to the need for a capable lead management strategy that keeps all of these best practices consistent, enforced and managed. Enjoy increased closings today! Joshua Conklin is director of business development at MortgageLeads.org and is an authority in the lead generation space. Joshua has more than 14 years of experience at developing strategic marketing platforms for the nation’s tops lenders and brokers nationwide. He may be reached by phone at (800) 848-7086, ext. 201 or email email@example.com.
new to market
continued from page 15
ny’s National Property Database and RiskFinder Distress product to score and rank counties and ZIP codes within counties. Servicers and investors can use the rankings to identify the specific geographies they want to target and then the specific ZIP codes in those geographies that offer potential for the highest return. Scores and ranks are based on property valuation appreciation and depreciation; depth of market supply; depth of market demand; distressed sales; and distressed discount trends. “Identifying the most attractive REO-toRental markets and properties is cumbersome for servicers and investors due to the sheer amount of data an accurate analysis requires,” said John Walsh, president of DataQuick. “The REO-to-Rental Neighborhood Rankings provide more than 10 years of monthly metrics for ZIP codes nationwide, ensuring the best REO investment destinations are evaluated and targeted.” REO-to-Rental Neighborhood Rankings are also delivered with extensive data sets that allow for custom analysis.
ISGN Partners With TRUPOINT on CFPB Mock Audit
Mortgage Keeper to Aid Homeowners During Disaster Recovery
MortgageKeeper Referral Services has added resources to aid homeowners in case of natural disaster. The application already has information for national service providers such as the American Red Cross. In the event of a disaster, MortgageKeeper can quickly add local non-profit and government resources that are uniquely qualified and equipped to help struggling homeowners. “These days, homeowners turn to their mortgage servicer to find their bearings after a disaster,” said Rochelle Nawrocki Gorey, president of MortgageKeeper Referral Services. “Our servicer clients are now equipped to refer homeowners to resources that can help. This may include national and regional responders, but also the makeshift assistance center started in a local church. Our disaster assistance will be local and flexible.”
Ernst Increases Geocoding Functionality
The year 2013 has been good thus far for the USDA single-family program in adding additional scope to the refinance program, clarification to underwriting criteria and an eligibility deadline extension. Effective in February, the USDA added 16 new states to their Rural Refinance Pilot Program. Individuals with existing USDAinsured home loans located in one of these states could refinance without the need to obtain a credit report or appraisal. The original states were: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee. The additional states added are Alaska, Arkansas, Colorado, Idaho, Kansas, Missouri, Montana, North Dakota, Oklahoma, Puerto Rico, South Dakota, Texas, Utah, Washington, West Virginia and Wisconsin. Also, in February the USDA offered clarity with regard to underwriting guidelines as they apply to loans with and without Guaranteed Underwriting System (GUS) findings. The update published a comparison checklist for documentation required for manually underwritten loans and loans receiving GUS finding recommendations as "refer" and "refer with caution.” As part of the update, the USDA has also addressed the details of reduced documentation for eligible loans receiving a GUS accept recommendation. Most recently, it was announced that the USDA would delay the implementation of the 2010 Census Data that would align area eligibility. This is good news since the data, if acted upon, would have adjusted area eligibility and disqualified more than 900 currently approved communities and disqualify nearly 40 percent of the loans in process at the time. The current eligible areas will remain in effect through Sept. 20, 2013. This extension was part of the 2013 Appropriations Act of 2013. To remain eligible, it is stated that the Rural Development (RD) field office would need to receive a “complete application” by end of business on Sept. 30. The USDA program continues to be the only source of non-military 100 percent financing in the marketplace. In 2012, before the Refinance Pilot Program was released in March, 97 percent of Rural Development production was purchase money, and after its release, 92 percent of total production are purchase transactions. All 50 states currently have areas of eligibility. As an originator, one should develop a more purchase-dominated pipeline where the USDA fits in nicely as a loan option. There is a learning curve in mastering this product, and having a wholesale lending partner that is exclusively dedicated to processing and underwriting this loan is an advantage. With more than 25 years in the mortgage industry, Rich Obermeier, National Accounts Representative for GSF Mortgage Corporation, has worked with some of the largest mortgage companies in the country developing retail and wholesale channels. Rich has assisted in developing and implementing operational protocols for sales managers, originators and loan processors. In recent years, Rich has developed the USDA Rural Development Product in multiple states and locations. Rich may be reached by phone at 800-400-USDA (8732) or e-mail firstname.lastname@example.org.
Sponsored Editorial continued on page 65
n Kansas Mortgage Professional Magazine n MAY 2013
Ernst Publishing Company has released new functionality for its patented fee engine technology that allows the firm to overlay its data on a geocoding application provided by CoreLogic to provide precise local tax jurisdiction information to its customers. The new functionality is expected to save Ernst’s clients millions of dollars as new taxing jurisdictions continue to spring up across the country. “When neighborhood communities find themselves low on funds they often levy new local taxes on real estate to make up the difference,” said Gregory E. Teal, president and chief executive officer of Ernst Publishing. “This is their prerogative, the challenge is knowing where these taxes apply. Most lenders are unaware of these confusing sub-jurisdiction until they result in undisclosed transfer taxes that were not on the GFE or HUD-1. This happens most often the most affluent neighborhoods across the country, these surprise taxes can cost lenders upwards of $40,000 to $80,000 per loan!” The new functionality uses mailing address standardization to geocode the address and then overlays it with Ernst data to determine the proper fees and taxes. If the recording jurisdiction cannot be located, options are provided for near miss addresses. Each lender can customize the functionality to pass addresses with a warning if it is a near miss or pause the deal until more information is provided by
By Rich Obermeier
ISGN Corporation announced it has partnered with TRUPOINT Partners to offer a comprehensive Consumer Financial Protection Bureau (CFPB) Mock Audit, ensuring financial institutions and mortgage lenders maintain compliance with the changing regulatory environment, CFPB rules and Fair Lending requirements. ISGN’s Professional Services group, which assesses compliance and operational risk and provides process optimization and cost reduction strategies, has developed a proprietary risk framework to conduct a mock CFPB audit for financial institutions and mortgage lenders. During the audit, ISGN performs a targeted loan review of potential problem loans identified through TRUPOINT Analytics’ Fair Lending and Home Mortgage Disclosure Act (HMDA) analysis systems. According to Lisa Weaver, CMB, senior vice president of Mortgage Solutions for ISGN, “This approach provides our clients the ability to conduct a ‘dry run’ to bring out any issues prior to the actual regulatory review.” TRUPOINT Analytics is a Software-as-aService (SaaS)-based comparative analysis platform for financial institutions. TRUPOINT’s revolutionary analysis engine provides the data analytics and lending report insight financial institutions need to understand and mitigate Fair Lending and HMDA risks. “When left unchecked, Fair Lending and HDMA risk can stall growth, undermine acquisition plans, hinder profitability and damage an organization’s reputation,” said Trey Sullivan, CEO of TRUPOINT. “The col-
laboration of TRUPOINT’s compliance analytics combined with ISGN’s compliance expertise compounds our ability to offer cost-effective solutions in a difficult area where mistakes can have severe consequences.”
2013 … So Far So Good for the USDA Single-Family Loan Program
NAMB Sales Marketing Tips for Today’s Mortgage Professional Sharpening Your Skills: A Daily Practice
MAY 2013 n Kansas Mortgage Professional Magazine n
By Fred Arnold, CMC
t the beginning of the year, I suggested five disciplines to incorporate into your daily routine, to keep your pipeline full. The easiest of the five, but most overlooked discipline, involves keeping yourself at the absolute forefront of industry trends, legislation, compliance and regulation. Keeping informed of up-to-the minute market changes and legislation is vital to being a true expert, which is exactly what our clients need and deserve. We owe it to them to not only be able to answer all of their questions, but also to educate them about the mortgage industry in general. Continuing education courses and seminars are obviously very important. Unfortunately, we cannot afford to spend every morning in a seminar, or all afternoon participating in a Webinar. Therefore, we need to be smart in terms of how we go about this. If we don’t have a structured practice in place, we run the risk of becoming distracted all day long by news and updates. That’s where the daily discipline of strategically spending 20 minutes to sharpen our skills comes into play. To increase efficiency when it comes to reviewing the latest updates in the mortgage field, it’s wise to create a filter system in your e-mail. Set up e-mail
filters to automatically file your daily updates into a folder for keeping, to read at your predetermined hour. For example, I subscribe to a number of enewsletters and updates, including National Mortgage Professional Magazine’s Mortgage News Ticker, Rob Chrisman’s Daily Mortgage News & Commentary, Larry Baer’s Market Alert, The Garrett and The McAuley Report. I also receive updates from NAMB via National Mortgage Professional Magazine, and the California Association of Mortgage Professionals. Some of these come weekly, some come daily and others come multiple times a day. I don’t read them the moment they arrive as this distracts me from my work with clients, and my clients must remain my number one focus. All updates are immediately streamed to a specified folder so that I am able to read them, at the specific time I’ve set aside each day. It is a good practice to read updates in the morning before getting to the office, or on lunch break. That way you can be informed of changes before you begin your work day, and check again around midday to see if there is any
news you need to be aware of for the second half of your day. Trying to keep up with all news updates throughout the day can lead to procrastination, or at the very least, reduced efficiency. In addition to reports from third-party providers, you also likely receive reports, updates or newsletters from referral partners or colleagues such as real estate agents, insurance agents, title and escrow companies, and more. Again, filtering these to a specified folder will help you remain focused during the day, as well as ensure that you do not overlook them or delete them without reading. If you are still looking for additional sources of information, sign up for a search engine service such as Google alerts, or use Google+ to flag relevant articles, and have those directed towards your education file as well. Remember the reason you’re doing this is to further cement your own understanding of the mortgage industry. You’re striving to become a true expert, by building a foundation of knowledge. To that end, after you’ve spent your time sharpening your skills, try to recall one or two key points from
“If we don’t have a structured practice in place, we run the risk of becoming distracted all day long by news and updates.”
what you’ve read to commit to memory. If it helps, you might consider determining who in your database of clients, strategic partners or networking group might be most interested in a particular insight. Then, send a synopsis or quick e-mail to at least five people who will find the information useful or insightful. Committing to spending 20 minutes each day to further your own education will do wonders in terms of helping you become an expert in the field. The ongoing effort will provide you not only with information useful for your clients, but will allow you to also reach out to strategic partners with information that may help them, all the while, you will continue to build your own personal knowledge base. Fred Arnold, CMC is past president of the California Association of Mortgage Professionals, current Treasurer of NAMB—The Association of Mortgage Professionals, and a mortgage professional at American Family Funding, a division of American Pacific Mortgage. Fred hosts the radio show SCV Chamber and Business Spotlight on AM 1220 KHTS, as well as the televised program “Out of The Rough” on SCVTV.com, channel 20. He may be reached by phone at (661) 284-1150, ext. 109 or e-mail email@example.com.
new to market
continued from page 63
the borrower. The functionality is available to Ernst clients now.
Xerox to Streamline Servicing With New BlitzDocs Servicing Offering
LRES Adds to Its Online Vendor Portal
Carrington Technology Solutions LLC and Equator Business Solutions have announced the commercial availability of RentPointe, Carrington’s proprietary software application specifically designed to meet the complexities of managing diverse portfolios of single-family rental properties. Integrated into Equator’s EQ Investor Platform per an exclusive agreement between the two companies, RentPointe provides financial institutions, institutional investors and large-scale property management companies with a scalable, end-to-end, single-family asset management suite dedicated to efficiently maximizing the performance of multiple-property portfolios. RentPointe offers a specific advantage to property management companies tasked with managing multiple properties and groups of individual property managers. Delivering RentPointe as a software as a service (SaaS) solution through Equator introduces this and other key advantages to a broader market and provides users with a robust, comprehensive system to more effectively meet their acquisition, property management and asset disposition needs. “RentPointe was specifically designed to meet a growing need within the single-family rental market for more efficient portfolio management and a solution with the ability to manage multiple property managers simultaneously,” said Brent Rasmussen, executive vice president and CIO for Carrington Technology Solutions, LLC. “Having utilized RentPointe as a proprietary solution for the past seven years to manage its own portfolio of nearly 15,000 U.S. properties, Carrington knows firsthand the potential impact this solution can have on the industry. That is why we are so pleased to offer RentPointe to the commercial market on Equator’s EQ Investor Platform.”
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: firstname.lastname@example.org Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.
Follow the trends It’s never a good idea to try and develop your own marketing campaign until you’ve found multiple types of marketing that work for you. If the big word in the industry is HARP (the Home Affordable Refinance Program), don’t try to go against the grain and market for something that isn’t working. The public is well-aware of the changes in the mortgage industry, and is keeping up on buzz words like “FHA STREAMLINE” and “HARP.” Find a marketing means that works for you and your budget and get to work. When you go to trade shows or talk with colleagues about how great their own campaigns are working, GO AFTER THE SAME THING! The marketing is working because the market is accepting it. Find a marketing firm that follows the trends, and then follow them yourself. The market will always show you how to best offer your products.
Test, measure, test again Many people begin a new marketing campaign with a new marketing firm and think that they should be setting records right away. This couldn’t be further from the truth. In fact, in most cases, the first campaign is only the beginning. Campaign number three or four is where their efforts really begin to pay off.
Tips for 2013 Direct mail responses are up. If you haven’t tried direct mail in a while, it might be time to give it a try again. VA responses are down so try to mix your VA campaign with other loan types as well. It’ll keep your response rates up while keeping an eye the VA market so you’ll see exactly when responses come back. Internet leads work if you work them. Don’t expect to make an easy buck … those days are over. If you must use them, make sure you get exclusive Internet leads and not ones that have been sold 10 times already, unless you already know those type of leads work for you. When it comes to Internet leads, cheaper is not always better. Live transfers are a thing of the past. With as much as 90 percent of the population on the Do-Not-Call List, telemarketing just isn’t what it used to be. New data files are available specifically for the mortgage industry. You don’t have to get set up with credit bureaus to get qualified data anymore. Mail houses won’t have it, but good marketing firms will. Trigger leads are still being sold by the credit bureaus. Remain aware of what methods your competitors are using. Whether you are using them or not, it’s a reality that must be dealt with. Last, but not least, RIDE THE WAVE! The mortgage industry is back and it’s time you came back with it. If you are not having the biggest year of your career, you’ve got to take a look at your own marketing efforts and how you can make your campaigns perform better. Medford, Ore.-based TagQuest is a full-service marketing firm created specifically for the ever-changing business world. TagQuest assists companies with their direct marketing, advertising and branding needs, and knows what it takes to generate quality customers and, most importantly, how to retain those customers for years to come. TagQuest brings forth a unique opportunity to utilize our experience and expertise in varying consumer sales and marketing environments. For more information, call (866) 376-5540 or visit Tagquest.com.
VIEW OUR MOST RECENT WEBINAR ON YOUTUBE Online readers please click on the link below, readers of the print edition, please copy the link and paste it into your browser. http://www.youtube.com/watch?v=coBEsmEV0go
n Kansas Mortgage Professional Magazine n MAY 2013
LRES has announced new features to its vendor portal Web site designed to enable licensed appraisers the ability to manage their residential and commercial property appraisal orders more efficiently. The updated vendor portal Web site offers smoother workflow and transition to various site features, more organized work queue based on priority of orders, dashboard with order counts by status and the ability to search/sort, order payment history and detail and an interactive mapping system. Workflow management features include the ability to search and view completed orders/work files by dates, addresses, order numbers, payment status, etc. The vendor portal website also now emphasizes special instructions/order due dates and provides unlimited access to engagement letters.
Carrington and Equator Announce the Expanded Availability of RentPointe
Here are some tips to keep your pipeline full regardless of market conditions
As new federal regulations requiring transparency, accountability and collaboration continue to be put in place, borrowers will see increased communication regarding the servicing of their mortgage, even after the home is purchased. Xerox is helping lenders and servicers simplify this process with the release of BlitzDocs Servicing. BlitzDocs, which has been used by lenders for more than a decade to accelerate and improve the loan process for origination and post-closing, provides an electronic loan folder (eFolder) that mimics traditional paper loan folders. This offering extends BlitzDocs’ intelligent collaboration into the servicing sector of the mortgage business and provides a single point of reference for all documentation related to a borrower for the duration of the loan. “BlitzDocs provides a single point of reference for all documentation relating to a loan; resulting in better customer service for our borrowers,” said Matthew Schuster, senior vice president of Servicing Operations at Fay Servicing. “The ability to index and reconcile documents from our sellers in bulk also results in faster review times.” Leveraging the BlitzDocs intelligent network, documents can be sent and received from trading partners including originators, borrowers, investors, sub-servicers, business process outsourcing providers and mortgage insurance companies. Xerox continues to add points of integration, including new partnerships with BeesPath, ComplianceEase and numerous loan origination systems.
“LRES places a premium on the strength of its vendor network, so we constantly look for ways to improve their user experience and work more efficiently,” said Roger Beane, CEO of LRES. “The new features added to our vendor portal website create a more productive environment and userfriendly experience for our valued partners.”
Have You Seen a Dip in Your Marketing Results?
The Keys to Peer Leadership: An Unlikely Source By Kevin E. O’Connor, CSP
MAY 2013 n Kansas Mortgage Professional Magazine n
s a small business CEO observed a window washer at the Atlanta airport one day, she asked what she thought to be a straightforward question, “What’s the secret to window washing?” “No secret, ma’am,” the window cleaner said as he continued working. “I just focus on keeping on with my tools and my experience. I keep on going.” The master continued working with repeated, slick motions, his tool remaining fixed to the glass, and leaving not one smudge. Then, true to his word, he kept on going. When the CEO asked what was in the blue water, the cleaning professional smiled and said, “I can’t tell you that! If you knew that, you could do my job!” Then, before attacking another pane, he said, “It is very special, though.” When a professional window cleaner uses just the right combination of resources—minimal tools; years of experience; a flowing, non-stop motion; and a secret concoction of suds—his or her work is efficient,
engaging, and looks natural—perhaps easy—to those who observe. Unlike the window washer, many team leaders don’t find their work to be efficient, easy or appear natural. These leaders often do not have degrees in leadership; they are promoted because they are very good at their jobs. Their former colleagues and friends now report to these “peer leaders.” There is a skill to leading your former peers without encountering resistance, resentment and regret. When your toolbox contains a simple collection of thinking, communicating, and acting that is coherent, ordered and intentional, your leadership appears as if it is natural. When you’re charged with leading a team of your peers or former peers, the right combination of resources makes all the difference. The following techniques should be at the core of every peer leader’s toolbox.
1. Minimal tools keep you focused. The most effective leader uses only one tool: his or her personality. One great peer leader uses his thirst for understanding and information. When a
member of his team enters his office, he asks that person to be the teacher while he plays the role of student. “Any questions I ask are merely a student asking,” he explains. “Then, I never use the words ‘I’ or ‘you’…I only use the words ‘we’ and ‘us.’ I want them walking out of my office feeling better than when they walked in.” By using the mindset of education, the pressure is removed from his “teacher” so that no question is off limits. This philosophy sets the tone for education and teamwork. If, instead, he were to use his intellectual curiosity to demonstrate that only he knew the correct answer, he could face resentment. The best peer leaders learn to harness their personality to inspire trust and teamwork.
2. Experience gives you credibility. Just as window washers have well-exercised wrists, your team wants to see that you still need and relate to them. While your team is working to create the next product, researching relevant case law, or driving across town at a moment’s notice to meet with a customer, they want to know that you’re there with them. Sometimes that means that they want your hands working alongside theirs, and sometimes it just means that they want to know that you understand their daily routines, frustrations and joys. Regardless of which approach your team members prefer, they want you to guide them in the next, and right direction. Your team will remember that you were there with them when you encourage. Today’s culture makes it easy for bosses to find faults, but you will have much greater influence when you frequently ask this question of your team members: “You know what I liked about what you did (or said)?” Be relentless as you look to find the ways that their input, skills and contributions have benefited the entire team. This is always of interest to the receiver; no one has ever responded, “No, I don’t want to know what you liked!”
3. A flowing, non-stop motion is very intentional. There are few things more beautiful than a leader who knows how and when to listen and where and when to speak; the times to agree and those to dissent; when to stay with the group and those other times when to go out on a limb. Just as the window washer intentionally follows a specific pattern, the successful leader never allows these moments to be chance events. Instead, they are always intentional. While employees sometimes want to be inquisitive, your peers want to be connected with you. With intimacy comes great trust and loyalty.
A consistent engagement with your team on a personal level (within the business environment) turns your role from that of a boss to one of a fearless leader, mentor, and teacher. This intimacy comes when you go beyond their favorite sports team to learn about their childhood passions, when you understand their family’s immigration experience deeply affected their outlook on international business, and that their self-directed nature comes from their Eagle Scout training. To the inexperienced leader, these characteristics are mere factoids. The best peer leaders know that an understanding of these experiences and traits lead to unbreakable loyalty, an impassioned work-ethic and—most importantly to the company’s owners—higher profits.
4. Your secret formula keeps you ever useful. Famous chefs sometimes share their secret recipes, for they know what many of us have learned after carefully following the same recipe three times: there are just some techniques that can’t be explained with words. Food rarely tastes the same way twice and rarely as good as it does in your favorite restaurant! The window washer humorously refused to share the ingredients in his bucket for fear of being replaced. The best peer leaders are afraid that their talents and “secret concoction” may go unused, so they focus on how their team is furthering the company’s mission. When leading a group of your peers, you must have a firm hold on the secret formula that lies within you. Ask your team members what they believe to be your “secret sauce,” and be ready to listen without judging their responses. You may find that your team wants you to talk more at meetings, even though you might think you talk too much. Your team may want you to consult them but ultimately make a firm decision, while you may lead by consensus for you fear making decisions alone. When your team tells you what they want, find a way to do what they have asked! Dolly Parton said, “Figure out who you are and then do it on purpose.” All of what you do as a leader must be naturally intentional, obviously purposeful, yet elegantly skillful. Kevin E. O’Connor, CSP, is a facilitator, medical educator and author. He focuses on teaching influence to scientific and technical professionals who are charged with leading teams of their former peers. His latest book, Fearless Facilitation, is due out this year. He may be reached by phone at (847) 208-8840, e-mail email@example.com or visit www.kevinoc.com.
l 360 Mortgage Group has announced that it has hired Ron Summers as its newest account executive to focus on expanding relationships with high quality mortgage brokers throughout Northern California. 360 Mortgage has also announced the additions of Kim Bessette as wholesale account executive for the central and northeastern Florida region, and Jennifer Warthen as account executive for the Sand Diego, Calif. area.
l RealtyTrac has announced the hiring of Jake Adger as chief economist.
l Norcom Mortgage has announced the addition of Lynn LaPierre as a mortgage consultant.
l U.S. Bank has named Rick Aneshansel president of U.S. Bank Home Mortgage, succeeding Dan Arrigoni who will retire June 30 after 42 years in the mortgage business.
l Real Estate Mortgage Network Inc. (REMN) has announced the opening
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: firstname.lastname@example.org Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.
n Kansas Mortgage Professional Magazine n MAY 2013
l United Guaranty has announced that Matt Muller has joined the company as senior account executive for the Oklahoma market.
l First Guaranty Mortgage Corporation (FGMC) has named Jeffrey Gibson to the position of managing director of TPO flow. l Jim Bagnell of SBF Mortgage has attained his Certified Residential Mortgage Specialist (CRMS) designation from NAMB—The Association of Mortgage Professionals. l Devin Daly has joined Mortgage Success Source LLC as executive vice president of sales and service. l The Mortgage Bankers Association (MBA) has announced the promotion of Kenneth A. Markison Esq., formerly associate vice president and regulatory counsel, to the position of VP and regulatory counsel. l Cognitive Options Group has announced the hiring of Dante Jackson as the firm’s operations manager and Michael Richardson as director of special projects. l ServiceLink has announced the addition of Mike Zwerner as senior vice president of corporate development. l Titan Lenders Corp. has brought on software development specialist, Matt Steck, as the company’s new chief information officer. l Blueberry Systems LLC has announced the promotion of indus-
try veteran Dominick Marchetti to chief operations officer. WFG National Title Insurance Company has announced the addition of Lee Ann Fenske to serve as senior vice president, compliance and national training officer. Stearns Lending Inc. has announced the appointment of Aaron Samples as the company’s new vice president of strategic development Radian Guaranty Inc., the mortgage insurance (MI) subsidiary of Radian Group Inc., has announced the addition of 30-year mortgage industry veteran Phillip Bracken to the team in the newly created role of chief policy officer–government and industry relations. First American Financial Corporation has announced the addition of Mark C. Oman to its board of directors. Oman retired from Wells Fargo & Company in 2011, after serving that firm for more than 30 years. Loan Resolution Corporation (LRC) announced that Corey Landon has been promoted to operations director. LenderLive Network Inc. has the additions of Kevin Kelley as senior vice president of operations for the Document Services unit, and Leon Niedzwiecki as director of review services.
Carrington Property Services LLC and LendingXpress, an SWBC company, have announced an exclusive crossmarketing agreement focused on providing credit unions and community banks with a comprehensive suite of real estate-owned (REO) asset management services designed to reduce costs and maximize returns. Through this strategic relationship, LendingXpress will market Carrington’s integrated, end-to-end REO asset management solution to its customer base, offering credit unions and community banks the proven, best-in-class capabilities previously reserved for large-scale financial institutions. “This arrangement directly supports the value proposition LendingXpress was based on–giving lenders a highly efficient, seamless method for accessing products and services designed to increase efficiency, reduce risk and offer a competitive advantage,” said LendingXpress President Ted Robinson. “We’re thrilled to work with Carrington Property Services and to add REO asset management to our service offerings tailored to meet the needs of the financial community.” Carrington’s integrated solution begins with an assessment of the property, which helps the lender determine whether to rent or sell the asset, and whether or not repairs are warranted. From that point, in compliance with applicable federal, state and local laws, Carrington handles occupant resolution, property repairs, and either rental management or the marketing and disposition of the REO properties – all through a central point of contact on a single operating platform, and executed on a local level by the company’s national network of real estate and property management professionals. LendingXpress will integrate this full range of capabilities within its existing offering of thirdparty products and services dedicated
Mortgage Professionals to Watch
Carrington Property Services Partners With LendingXpress on REO Services
to meeting the needs of financial institutions.
and Joy Soler will also join NewDay USA. Estes, who served as compliance and curriculum developer for Abacus, is a nationally recognized regulatory compliance expert and author. He will be a member of the NewDay USA compliance committee and will serve as a liaison between compliance and curriculum development. Soler, who served as project manager at Abacus, has broad experience working with regulators to obtain curriculum approvals.
continued from page 47
heard on the street
of their first Akron, Ohio office, and Ohio mortgage industry veteran, Steven Fishman has joined the company in the role of branch manager of the new office. REMN has also added several new associates at their branches nationwide, including: Tom Bawany in Orlando, Fla.; Duante Duckett in Columbia, Md.; Mark Erickson in South Burlington, Vt.; Michael Gordon in Denver, Colo.; Shane Hale in Plano, Texas; Ronald Ireland in Overland Park, Kan.; Rose Pinto in Daytona Beach, Fla.
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MAY 2013 n National Mortgage Professional Magazine n
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BROKERS COMPLIANCE GROUP 167 West Hudson Street â€“ Suite 200 Long Beach | NY | 11561 email@example.com www.BrokersComplianceGroup.com
Leveling the Playing Field for Mortgage Brokers Low Cost Monthly Membership Includes: â€˘ Free Weekly Hotline â€˘ Access to Subject Matter Experts â€˘ Policies and Procedures â€˘ Webinars *Special Pricing* â€˘ Quality Control â€˘ Exam Readiness â€˘ Licensing â€˘ Legal Reviews
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 youâ€Ś â€˘ â€˘ â€˘ â€˘
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!
Cost: Only $19.95 per month per physical office location.
Pioneers in outsourcing solutions for mortgage compliance. Our Compliance Team Will: 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.
Credit Plus, Inc. 31550 Winterplace Parkway, Salisbury, MD 21804 800-258-3488 www.creditplus.com Credit Plus, Inc., a leader in credit information services, is dedicated to providing mortgage professionals with an unsurpassed level of service and technology. We provide lenders and brokers the best tools and support to close more loans faster and cheaper. Offering the most innovative, reliable and robust credit reporting platforms on the market, Credit Plus goes BEYOND BUNDLEDTM by combining key products, such as credit reports, scoring tools, Undisclosed Debt Monitoring powered by Equifax, flood reports, title services, AVMs, Warranted AVMs, tax return verifications and more, while providing stellar customer service.Â
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The first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance.
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.
No contracts so sign up today and give yourself the tools to brand yourself as The FHA Expert in your marketplace.
LENDERS COMPLIANCE GROUP 167 West Hudson Street - Suite 200 Long Beach | NY | 11561 | (516) 442-3456 www.LendersComplianceGroup.com
Titan List & Mailing Services, Inc. 1020 NW 6th St Suite D, DeerďŹ eld Beach, FL. 33442 (800) 544-8060 www.TitanLists.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.
Mortgage Seminars MortgageSeminars.com 248-403-8181
Gets you more referrals, inquiries, and closings! MortgageLeads.org 888-695-3239
Mortgage Internet Leads $9.99. Find out why the nation's top lenders partner with MortgageLeads.ORG. Target by: â€˘ Refinance â€˘ Purchase â€˘ HARP â€˘ FHA â€˘ VA â€˘ Reverse. Close more loans today 888-695-3239 or click www.MortgageLeads.org
hatâ€™s what mortgage loan
Want more loans?
Warren J. Rosaluk 800.795.2150
BrochureGuy.com LOAN ORIGINATION SYSTEMS
American Financial Resources, Inc. Jim Melchior, National Sales Director 502-882-0529 www.AFRWholesale.com American Financial Resourcesâ€™ Wholesale Division is one of the countryâ€™s leading wholesale lenders. Recently ranked #2 in total sponsored FHA loans closed, AFR officers a wide variety of products including: â€˘ Conventional â€˘ Freddie Mac Open Access and Fannie Mae DU Refi Plus â€˘ USDA â€˘ Manufactured Housing â€˘ VA â€˘ One-Time Close Construction â€˘ FHA 203k full and streamline rehabilitation loans Since 1997 we have been expanding to better serve you and our hard work and investment have resulted in faster turn times, quality customer service, and one of the most robust product lines in the industry.
Close Jumbo Loans Others Cannot
Service more jumbo borrowers with New Pennâ€™s Jumbo Advantage portfolio product 877-930-PENN www.GoNewPenn.com
Calyx Software 800-362-2599 www.calyxsoftware.com
MAY 2013 n National Mortgage Professional Magazine n
Jumbo Advantage Highlights: â€˘ Market leading jumbo rates
Calyx Software is the #1 provider of affordable mortgage solutions for banks, credit unions, mortgage bankers and brokers. Beginning with customizable websites that offer online mortgage applications with eDisclosures and document request/retrieval, Calyx offers products that enable smooth bi-directional flow of data from start to finish. Our solid yet flexible LOS delivers smart technology with electronic document management, back-end functionality such as underwriting and secondary marketing, strong security, remote access, on-the-go productivity available with optional mobile apps, and a configurable business rules engine needed for workflow and compliance. Convenient interfaces with over 200 vendors providing PPE, closing documents, compliance services and more make endto-end processing and reporting simple & accurate. Lenders can take advantage of our fully integrated automated underwriting and pricing products that determine loan eligibility and pricing against investor or FHA guidelines.
â€˘ Loan amounts up to $2 million â€˘ Cash out up to $400,000 â€˘ FICO down to 680 â€˘ Expanded loan-to-value (LTV) up to 85% (no MI) â€˘ Expanded debt-to-income ratio (DTI) up to 50%
Whether you are an experienced reverse mortgage professional looking to grow faster or a firm wanting to create a new product line, allow RMSâ€™s production division RMPath to work with and alongside you to build a strategic path to success. We have: â€˘ Correspondent, Wholesale Lending And Aggregation Partnering â€˘ We Offer Exceptional Customer Service And Market - Leading Pricing â€˘ Powerful, Secure, Scalable Loan Origination Systems â€˘ Proprietary State-Of-The-Art Technology Utilizing The RM COMPASS Technology Platform â€˘ Customizable Production Strategies To Fit Your Needs â€˘ Rapid Execution And Exceptional Customer Service â€˘ Excellent Compliance And Regulatory Controls
8520 Macon Rd. Ste 2 Cordova, TN 38018 firstname.lastname@example.org | 615-477-7118 MCMF developed My Guide, a Premier Credit & Financial Education Magazine that you can customize with your LOGO and Ad Pages to feature your organization as well as provide your borrowers a go-to-guide for credit and financial resources, empowering them to make the most informed financial decisions. This 16 page, full color, quarterly publication, provides financial literacy tools in a concise, unbiased, easy to understand format.
The Direct Path into the Reverse Mortgage Market. Ralph E. Rosynek, Jr. / Senior Vice-President National Production Manager /HECM Direct Endorsement Underwriter E-Mail: email@example.com / firstname.lastname@example.org Office: 281.404.7970 / Cell: 708.774.1092 / EFax: 866.543.5420 URL: www.rmsnav.com â€˘ www.RMPath.com
Maaverick Funding Corp. is a direct mortgage lender licensed in 30 states across the country. Haavving obttained FHA, VA A, USDA and Fannie Mae appro ovals, Maaverick is growing and seeking top talent for their expanding nationwide footprint.
My Guide is offered in traditional magazine print, as well as our newest electronic flipbook version, bringing â€œflipping through a magazineâ€? experience right to your desktop
Phone: 855.422.5917 ny NJ NJ,, 07054 9 Entin Rd., Parsippany Visit us at www w.Ma . averickFundingg.com
Contact me today to learn more about this one of a kind opportunity!
Maverick Fundingg Corp. NMLS# 7706
CBC National Bank 3010 Royal Boulevard South, Ste. 230 Alpharetta, GA 30022 888-486-4304 Rushmore Home Loans www.rushmorehl.com 888.202.0878 Rushmore Home Loans is a wholesale lender dedicated to understanding and answering the needs of our brokers. We provide competitive mortgage loan products with a focus on quality, efficiency and flexibility. Our goal is to deliver an experienced, customer-focused team with access to the most comprehensive technology platform to deliver the highest possible service to our brokers.
United Wholesale Mortgage 800-981-8898 www.uwm.com UWM has a full set of mortgage products to meet all of your lending needs with Conventional, FHA, USDA (Rural Development), VA, Jumbo, HARP 2.0 and DU Refi Plus. With UWM’s ELITE program, you will receive the most aggressive conventional rates and pricing in the industry for your elite borrowers! Discover Lending Made Easy with United Wholesale Mortgage!
CBC National Bank is one of the nation’s fastest growing wholesale lenders offering Conventional, FHA, VA, and USDA. The most important aspect of being a leader in today’s market is the ability to build and maintain a meaningful relationship with each customer. We understand that these meaningful relationships coupled with competitive pricing and efficient technology are the pillars of today’s lending environment. We are hiring Loan officers in the Southeast. GA, FL, AL, TN, NC,SC. Contact Gabe Santiago our Corporate Recruiter at email@example.com for further details. Big Enough to MATTER…Small Enough to CARE
HomeBridge is a national wholesale lender offering both conventional and government products. 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. Currently expanding and hiring experienced Wholesale Account Executives nationwide. Please send your resume to firstname.lastname@example.org.
Building bridges to success, one loan at a time.
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 email@example.com
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Real Estate Mortgage Network, Inc. www.remnwholesale.com 866-933-6342
HomeBridge 5 Park Plaza, 10th Floor Irvine, CA 92614 www.homebridgewholesale.com
calendar of events N A T I O N A L
M O R T G A G E
JUNE 2013 Monday-Friday, June 3-7 MISMO Spring Summit Meeting Dallas/Addison Marriott Quorum by the Galleria 14901 Dallas Parkway Dallas, Texas For more information, e-mail firstname.lastname@example.org.
MAY 2013 n Kansas Mortgage Professional Magazine n
Friday, June 7 Mastermind 2013 Maximum Growth Summit Presented by Maximum Acceleration The Palms Hotel 4381 West Flamingo Road Las Vegas, Nev. For more information, call (888) 819-7047 or visit www.maccelcoach.com. Sunday-Tuesday, June 9-11 2013 Ultimate Mortgage Expo Tropicana Resort & Casino 2831 Boardwalk Atlantic City, N.J. For more information, call (860) 922-3441 or e-mail email@example.com. JULY 2013 Wednesday, July 17 2013 “Let’s Make A Deal” Tri-State Wholesale Lending Fair Trump Taj Mahal Casino Resort 1000 Boardwalk Avenue Atlantic City, N.J. For more information, call (732) 596-1619 or visit www.mbanj.com.
P R O F E S S I O N A L
Wednesday-Saturday, July 31-August 3 Florida Association of Mortgage Professionals (FAMP 2013) Annual Convention “Here We Grow Again” Rosen’s Shingle Creek 9939 Universal Boulevard Orlando, Fla. For more information, e-mail firstname.lastname@example.org or visit www.famb.org. AUGUST 2013 Thursday-Friday, August 8-9 Louisiana Mortgage Lenders Association (LMLA) 2013 Annual Conference Hilton New Orleans Riverside 2 Poydras Street New Orleans, La. For more information, call (225) 590-5722 or visit www.lmla.com.
OCTOBER 2013 Saturday-Monday, October 19-21 NAMB National 2013 Harrah’s Las Vegas 3475 Las Vegas Boulevard South Las Vegas, Nev. For more information, call (972) 758-1151 or visit www.namb.org.
Sunday-Wednesday, October 27-30 Mortgage Bankers Association (MBA) 100th Annual Convention & Expo Walter E. Washington Convention Center 801 Mt. Vernon Place Washington, D.C. For more information, call (800) 793-6222 or visit www.mortgagebankers.org.
SEPTEMBER 2013 Sunday-Tuesday, September 29-October 1 MBA Regulatory Compliance Conference Renaissance Washington DC Downtown Hotel 999 9th Street NW Washington, D.C. For more information, call (800) 793-6222 or visit www.mortgagebankers.org.
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 email@example.com.
LOOKING FOR A COMMITTED RELATIONSHIP? While some of our competitors were trying to get rid of you, AFR was figuring out ways to close more of your loans. Conventional - Conventional Fixed - Freddie Mac Open Access - Fannie Mae DU Refi Plus (Unlimited LTV/CLTV on HARP loans)
- Manufactured Housing VA - Purchases and Refinances - VA IRRRL Refinances - Manufactured Housing FHA - FHA Streamline - FHA Premium Plus - FHA $100 Down - FHA One Time Close - FHA 203(k) and 203(k) Streamline - Manufactured Housing
AFR DOES NOT CHARGE ANY LENDER FEES! To sign up as a TPO or Table Funded Broker, Correspondent or Correspondent with Delegated Underwriting Authority, call us at 888-913-3912 or online at AFRWholesale.com
USDA - Guaranteed Rural Housing Loan - Manufactured Housing
American Financial Resources’ Wholesale Division ranked #1 in total sponsored FHA loans closed and #1 in total sponsored 203k loans closed for all Non-Bank Lenders AFR is a nationwide, direct FHA lender and approved GNMA issuer. Our corporate office is located at 9 Sylvan Way, Parsippany, New Jersey 07054 • 1-888-664-2101 *AFR Wholesale Division ranked 1st in total sponsored FHA loans closed with a beginning amortization date between March 1, 2011, and February 28, 2013, for all non-bank lenders; ranked #4 overall as reported by HUD’s Neighborhood Watch (excludes streamlines). Intended for mortgage professionals only.
Published on May 31, 2013