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ed mortgage servicing right impairments in the fourth quarter 2008, as interest rates dropped and refis ramped up. Almost 75 percent of the 270 companies that reported production data for this report were independent companies. Overall, the average firm in the report originated about $500 million in 2008. For more information, visit www.mortgagebankers.org.
CampusMBA approved as a SAFE Act education provider By Charlie W. Elliott Jr., MAI, SRA
OCTOBER 2009 O
MINNESOTA MORTGAGE PROFESSIONAL MAGAZINE
O www.NationalMortgageProfessional.com
Where Has the Economic Meltdown Taken Us?
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Within the past year, we in the financial strange and bizarre sort of way, has industry have witnessed catastrophic opened up opportunity that most of us economic changes like never before have never experienced before. It has seen in modern times. The change, thinned out the ranks, eliminating while seeming to erupt from a typical those among us who had reached a soft market, exploded into a multifac- level of professional incompetence. The eted economic tsunami of biblical pro- storm has pruned the tree. It has portions. It resulted in a complete eco- reduced the price of property in many nomic collapse of the underpinning of places to more affordable levels. It has our financial system and provided many of us with affected every part of our more of a sense of apprelives. ciation for those assets We have, and are conthat we do have left, tinuing to experience, including friends and many negative effects family. Most of us are less from this crisis, both at a likely to invest in risky personal level and a proventures than we were fessional level. Personally, when the market drove us we have lost pride, mutuin that direction. Perhaps al funds, stocks, income, in this regard, we will jobs, credit, homes, cars have more confidence in and our professions. At a ourselves and in our deciprofessional level, we sions. Each of us now has “The economic melthave lost accounts, transdown, in a strange and a clean slate of sorts to actions, clients, co-workreprove our worth in our bizarre sort of way, has profession. The chalk is ers, credibility, bosses and subordinates. We have opened up opportunity there, and who better that most of us have lost much of our profesthan us to fill the slate sional independence to with positive and producnever experienced the heavy hand of governbefore. It has thinned tive penmanship. Yes, the ment regulation, and the circumstances and the out the ranks, elimilist goes on and on. rules will be different. We nating those among us We have also experiwill find new horizons, who had reached a enced various states of there will be new level of professional mind, including sadness, demands, and we will be incompetence.” bewilderment, anger, able to taste the wine disappointment, emptiwith a cleaner pallet. ness, pain, fear and, yes, a bit of hate. In realistic and specific terms, what It is time to get over it. While not all will be really different in the financial of the negative conditions are behind industry? Generalizing is easier than us, it is safe to say that most is, and it is being specific; however, I will throw out time to move on. Yes, there will be a few issues and conditions, which we other shoes to drop, but we have seen may find ourselves looking at in our the worst. We are wiser, tougher, leaner profession over the next few years. and meaner than we were in the past. Fewer people will own homes if recent We serve no purpose by worrying, pout- reports are to be believed. Rather than ing, whining and generally serving as looking at homeownership at the 70 pernegative examples to those around us. cent level, we will probably be looking at In short, we are better people now after levels in the mid-to-low 60s. That does having weathered this storm. continued on page 20 The economic meltdown, in a
CampusMBA, the education division of the Mortgage Bankers Association (MBA), has announced it has been approved as an educational provider through the Nationwide Mortgage Licensing System (NMLS) to offer courses under the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). The SAFE Act, part of the Housing and Economic Recovery Act of 2008 (HERA), establishes minimum national standards for mortgage training, both in pre-licensing and continuing education. In order for an educational provider to offer these courses, it must be approved by NMLS, which was created by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) and is responsible for implementing these requirements. “CampusMBA has long been committed to ensuring our members have the relevant tools and training necessary to comply with the most up to date industry and regulatory standards,” said Paul Green, MBA’s senior vice president of corporate relations, education and business development. “We are thrilled to provide thorough and dynamic courses to ensure companies and their staff can meet the SAFE Act’s pre-licensure and continuing education requirements with minimal disruption to their important daily business.” Requirements for all state-licensed mortgage loan originators include at least 20 hours of pre-licensing education and at least eight hours of continuing education on an annual basis. Required subject matter includes federal law and regulations, ethics, fraud, consumer protection and fair lending issues, as well as instruction on mortgage origination. CampusMBA offers all approved SAFE Act training privately at company locations or online for staff convenience. For more information, visit www.campusmba.org.
National Default Servicing becomes The National Groups
National Default Servicing LLC (NDS), a provider of default and servicing related
solutions to the real estate industry, announced the integration of its mortgage service operations under the new parent name, The National Groups. Affiliate companies to be combined include: National Default Services LLC, an outsourcer of asset management, marketing and disposition of real estate-owned (REO) properties held by government agencies, institutions and private investors; National Collections & Loss Mitigation Services LLC, a default management firm specializing in short sale and modification services; National Valuation Services LLC, a provider of all types of valuation products and valuation quality control services; and National Closing, Escrow and Title Services Inc., a licensed and regulated closing and escrow services firm. “The National Groups is an enterprise designed to create a meaningful change in the way the institutional and private investors service their assets,” said Bob Vanderbilt, chief executive officer of The National Groups. “Our combined operations represent a streamlined, cross-functional approach that will achieve a higher degree of efficiency than the affiliates could ever produce individually.” The National Groups will be providing its clients a full suite of customizable services, nationwide resources, flexible technology, and full compliance, a portfolio management methodology Vanderbilt calls “Service Without Boundaries.” The firm’s approach to service delivery, operating systems, and data will consider such aspects as SAS 70 compliance, carbon footprint impact and conformity with federal debt collection practices. These entities are also licensed to collect debt in all 50 states. “The combined expertise of The National Groups is an effective response to the volume of distressed borrowers under the [Home Affordable Modification Program] HAMP initiative and the significant increase in foreclosed and REO properties nationwide,” said Larry Bird, chief marketing officer of The National Groups. “The company represents a veritable ‘who’s who’ of professionals to support these efforts from coast to coast.” For more information, visit www.thenationalgroups.com.
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NMP News Flash column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.