Page 35

heard on the street


continued from page 25

Corporation, America Preferred Lending, GM West Funding and Thayer Financial Corporation of California; Choice One Mortgage Corporation, Homelynx Home Loans and Liberty Mortgage Lending Inc. in Florida; and Hi-Tech Mortgage Inc. in Arizona. “Independent mortgage bankers are inking new services commitments cautiously these days and focusing on granular, loan level quality as their operations benchmark,” said TLC President Mary Kladde. “Mortgage lenders are motivated by compliance pressures and fiscal prudence to outsource detail-intensive back office operations and fulfillment services, including post-closing loan review.” Titan Lenders Corporation’s patented, proprietary Web-based software Cerberyx (CBX) supports a full suite of fulfillment services, including: Funding, compliance, closing, post-closing, purchase review for correspondents and warehouse lenders, trailing documents, MERs management, Federal Housing Administration (FHA) insuring, and document management (imaging). For more information, visit

Mortgage Professionals to Watch  Mortgage Concepts has promoted Leonard J. Ramirez to chief operating officer and has added Scott A. Milner as vice president.

Leonard J. Ramirez

Titan Lenders signs nine mortgage bankers in second quarter

It’s Time to Step Up

Thoughts on the new age of broker accountability By Greg Schroeder I started writing this column to assist brokers in regaining their status as Trusted Mortgage Professionals because as a former wholesale lender, I passionately believe in the wholesale channel and want to see it succeed once more. However, the grumblings I’ve been hearing lately regarding licensing, insurance and the like have left me somewhat troubled. It’s time for me to stop being polite and start getting real. Mortgage brokers facilitate the largest financial transaction most consumers will ever undertake, but there’s so much more to the home purchase than just numbers. Owning a home is part of the American dream. Homes are where we raise our families and make memories that last a lifetime. There is a sense of security and comfort attached to one’s home—it’s our refuge from the storm. With so much at stake for the consumer, is it really so ludicrous to demand that the agents facilitating this transaction be licensed, bonded and insured? Think about it … you have to have a license to trade stocks or issue insurance. Want your hair colored or a drink at your local watering hole after a hard day? The professionals applying that nice shade of copper or pouring that scotch must be licensed as well. Having a license signals to the consumer that he or she can place some measure of trust in that licensed professional because there are consequences for noncompliance with the terms and conditions of that license. In addition, a license also provides certain protections to the licensed professional, usually in the form of some recourse through the issuing entity for addressing allegations of misconduct. Recent changes to net worth requirements have placed the bulk of responsibility for loan buybacks on the shoulders of wholesale lenders, and those lenders are going to want some means of recompense from their third-party originator (TPO) partners if a loan officer does something to damage the integrity of a loan or pool of loans. Gone are the days when, in such a case, brokers could simply declare bankruptcy and open up shop as a new origination firm. The industry is watching, and it is demanding accountability from everyone. Brokers had it really easy in the mortgage bubble heyday. Times were good. Profits were plentiful and housing prices had nowhere to go but up. It didn’t matter that having unlicensed loan officers originating loans created increased potential for fraud, negligence and predatory lending. Even originating loans without documentation—a practice most would now agree is just plain foolish— was accepted without batting an eye. Investors were willing to take on these enormous risks because they thought the money that would be made would far exceed the cost of accepting this risk. We all know how that story turned out so why is there so much resistance to creating accountability? It’s time to be professional. It’s time to take pride in what we do. A true Trusted Mortgage Professional views consumer protection as priority number one, and because he or she has nothing to hide, the true Trusted Mortgage Professional has no problem possessing insurance to cover acts of dishonesty and/or fraud on the part of loan officers and is happy to be licensed, tested and registered. It’s not just that it makes good business sense—it’s also the right thing to do. Greg Schroeder is president of Comergence Compliance Monitoring. To learn more about how the Comergence Compliance Trusted Mortgage Professional program can help, call (714) 495-4720.

Robert Tranchell continued on page 37



Mortgage fulfillment outsource services provider Titan Lenders Corporation (TLC) has signed nine mortgage banker clients in the second quarter of 2010. TLC, a U.S.-based domestic mortgage fulfillment outsource operation, offers a parallel and variable costalternative solution to lenders that maintain back office and warehouse line management operations. TLC’s new clients include: Ace Lending LLC of Wisconsin; America One Mortgage

 Robert Tranchell has been named reverse mortgage manager of Mount Vernon Mortgage’s reverse mortgage division.



Scott A. Milner


period, highlighted by the issuance of our first mortgage insurance policies and successfully raising an additional $100 million in capital.” In May 2009, Essent said it had raised an initial $500 million in capital commitments from a group of experienced financial services investors including Pine Brook Road Partners, Goldman Sachs, JP Morgan Chase, PartnerRe, RenaissanceRe Ventures Ltd., and others. “Our additional capital raise, as well as the recent capital raises by other mortgage insurance companies, affirms the view we have shared with public policy makers that private capital is available to take prudent mortgage credit risk,” said Essent’s Vice Chairman Adolfo Marzol. “We hope Essent will continue to play an important role in enhancing confidence that a sound mortgage finance system can attract capital into the private mortgage insurance industry to take and manage mortgage credit risk.” The company also announced that its lender customers now have access to Essent’s ordering and servicing portal, Essent Online at Essent launched the portal in May, which enables lenders to submit loans for MI, update loan parameters, and upload documents. Mortgage loan servicers can activate a certificate, transfer servicing and run reports using the portal. “We are pleased that our lenders will be able to order mortgage insurance from Essent using a secure and easy Web-based process through Essent Online,” said Casale. “Our team has been working hard to engage our lender partners and establish an operating platform that supports the needs of our customers and makes doing business with Essent an easy and efficient experience.” Essent also has received state licensing approval in all 50 states and the District of Columbia and is able to write mortgage insurance nationwide, facilitated by Essent’s participation in the National Association of Insurance Commissioners’ National Treatment licensing pilot program. For more information, visit

★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★