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Mortgage PROFESSIONAL M O N T A N A

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Your source for the latest on originations, settlement, and servicing

Montana Association of Mortgage Brokers P.O. Box 1012 v Helena, MT 59624-1012 Phone: (406) 227-5490 Fax: (406) 227-7000 Montana Association of Mortgage Brokers

Montana Association of Mortgage Brokers

MAMB BOARD OF DIRECTORS Dave Christensen Gary Tomljenovich Charles Bott Loren Olsen Steven Tucker

President Vice President/President-Elect Secretary Treasurer Past President

Phone # (406) 844-2345 (406) 259-0877 (406) 294-7070 (406) 556-9016 (406) 652-6677

E-mail davec@mtnlk.com gary@loansbyapex.com chasb@crossbowmortgage.com loren.olsen@carteretmortgage.com steven@american-mtg.com

Montana Association of Mortgage Brokers

Code of Ethics and Business Standards Honesty and Integrity MAMB members shall conduct business in a manner reflecting honesty, honor and integrity.

Professional Conduct MAMB members shall conduct their business activities in a professional manner.

Honesty in Advertising MAMB members shall endeavor to be accurate in all advertising and solicitations.

Confidentiality MAMB members shall avoid unauthorized disclosure of confidential information.

Compliance With Law MAMB members shall conduct their business in compliance with all applicable laws and regulations. For more information on MAMB membership, call the MAMB state office at (406) 227-5490 or visit www.mtamb.com.

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The Montana Association of Mortgage Brokers (MAMB) is an association of licensed mortgage brokers and loan originators from across the state that share an interest in offering the best possible service to their clients and supporters. By offering quality in-person training, opportunities to meet and exchange ideas and a forum for discussion about the changes and ramifications of the licensing law, MAMB is striving to create a level of professionalism in the state of Montana that surpasses that of all others. Membership in MAMB also carries a membership in the National Association of Mortgage Brokers (NAMB) which gives members a voice in Washington, D.C. and up to date information on what is happening nationally. The Board members and membership of MAMB have been working diligently for the past ten years to establish a strong relationship with the Montana Department of Administration’s Division of Banking, brining quality trainers and courses to Montana and building strong industry relationships.

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National Mortgage Professional Magazine

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TABLE OF CONTENTS

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A Special Look at “Mortgage Industry Employment” Changing Market Opportunities By Eddy Perez ................42 Lessons From the Road: How to Hire Great Salespeople By Chris Sullivan ............................................43 A Framework for Evaluating Recruiters By Steve Rennie ..44 How to Keep Employees Happy By Kerry Elam ................45 Boost Your Employee Performance in the New Year By Tyler Sherman ................................................46

America’s Choice Home Loans .......................... www.achlonline.com ............................................25 Brokers Compliance Group................................ www.brokerscompliancegroup.com ........................31 Calyx Software ................................................ www.calyxsoftware.com ......................................12 CBC National Bank .......................................... www.cbconnex.com ............................................14 Credit Plus, Inc. .............................................. www.creditplus.com ..............................................9 Data Facts........................................................ www.datafacts.com ..............................................47 Document Systems, Inc./DocMagic .................... www.docmagic.com ............................................29 FindMortgageJobs.com .................................... www.findmortgagejobs.com ..................................48 First Guaranty Mortgage Corp. .......................... www.fgmcwholesale.com ......................................49

What to Do When You’re Hated at Work By Jean Kelley ..48

Guaranteed Home Mortgage Company .............. www.joinGHMC.com ............................................15

2013 Who’s Hiring Report & Featured Listings ............54

HomeBridge .................................................... www.homebridgewholesale.com ..........................11 Hometown Lenders ........................................www.whotookmybacon.com ..................................13

Features Thinking Outside the Box Can Help Grow Your Referral Base By Jake Soley ........................................4 The Elite Performer: The 2013 Mortgage Professional and Real Estate Agent By Andy W. Harris, CRMS ........................................................4 Three Reasons You Should Join the Professionals at Direwctly.com By Carolyn Warren ....................................6 NCRA Celebrates 20th Anniversary at Tampa Conference By Terry W. Clemans ..........................8 Growth Strategies for the New Year: It’s All About Relationships By Sue Woodard ......................10 Lykken on Leadership By David Lykken ..............................14 For Managers Only: Firing the Wrong People By Dave Hershman ................................................................18 NAMB Perspective..........................................................20

2013: Wholesale Rising By Al Crisanty................................24 Compliance and Marketing 2013: Safely Growing Your Business ................................................................26

Throwing a Lifesaver to Underwater Borrowers By Jonathan Foxx..................................................................28 No Changes to 2013 Conventional Loan Limits By Melanie A. Feliciano Esq. ....................................................30 Bonded With NAMB: All Bonds Are Not Created Equal By Mason Grashot, CPA ........................................................32 NMP Mortgage Professional of the Month: Charles Wagner of CBC National Bank By David J. Coster ..........34 USA Cares Mortgage Heroes: Norman Zolkos of Menlo Park Funding By Jennifer Robinson ......................35 A New Era for Mortgage Closings? By Richard Peter Stevens and Andrew Liput ................................38 How the Global Economy Will Impact U.S. Mortgages By Barbara Zigah ..................................................................52 Zero for Heroes By Greg Frost Jr. ......................................63

NAPMW .......................................................... www.napmw.org ..................................................16 PB Financial Group Corp. .................................. www.pbfinancialgrp.com ......................................12 Power Training LLC .......................................... www.maccelcoach.com/webinars ..........................27 REMN (Real Estate Mortgage Network)................ www.remnwholesale.com ......................................7 Residential Home Funding Corp. ...................... www.RHFBranch.com ..........................................37

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Service First Mortgage ...................................... www.servicefirstmtg.com ......................................19 Streetlinks LLC ................................................ www.streetlinks.com ....................Inside Front Cover TagQuest ........................................................ www.tagquest.com ..............................................39 The Bond Exchange .......................................... www.thebondexchange.com ................................18 Titan List & Mailing Services, Inc. ...................... www.titanlists.com ................................Inside Back United States Appraisals .................................. www.unitedstatesappraisals.com ............................5 United Wholesale Mortgage .............................. www.uwm.com ........................................Back Cover

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360 Mortgage Group: An Interview With Mark Greco ..50

Menlo Park Funding ........................................ www.menloparkfunding.com ................................19

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

Applying SWOT to the Mortgage Industry By Jean LeBlanc ..................................................................26

Meadowbrook Financial Mortgage Bankers Corp. .. www.mortgagesalesjob.com ..................................33

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The Heart of the Profession: Don Fader Recognized as NAMB’s Mortgage Professional of the Year By David J. Coster ................................................................23

Icon Residential Lenders, LLC ............................ www.iconwholesale.com ......................................17


Volume 5 • Number 1 1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com STAFF Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 ericp@nmpmediacorp.com Joel M. Berman Publisher - CEO (516) 409-5555, ext. 310 joel@nmpmediacorp.com David J. Coster Senior Editor davidc@nmpmediacorp.com Joey Arendt Art Director joeya@nmpmediacorp.com Jon Blake Advertising Coordinator (516) 409-5555, ext. 301 jonb@nmpmediacorp.com Beverly Koondel National Account Executive (516) 409-5555, ext. 316 beverlyk@nmpmediacorp.com Scott Koondel Billing Coordinator (516) 409-5555, ext. 324 scottk@nmpmediacorp.com

ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact National Account Executive Beverly Koondel at (516) 409-5555, ext. 316 or e-mail beverlyk@nmpmediacorp.com. ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or e-mail ericp@nmpmediacorp.com. The deadline for submissions is the first of the month prior to the target issue. SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@nmpmediacorp.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. 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 Credit 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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National Mortgage Professional Magazine is published monthly by NMP Media Corp. Copyright © 2013 NMP Media Corp.

Views from Vegas I had the privilege of attending the inaugural NAMB National Conference in early December at the MGM Grand in Las Vegas. While its has been nearly 20 years since I last originated a loan, I still pride myself in having my roots grown deep in the industry. Although I have moved on from my role as a mortgage broker, I like to describe myself as magazine publisher who thinks like a mortgage broker. With nearly 1,400 total attendees at NAMB’s inaugural NAMB National Conference, it was quite evident to me that the mortgage broker is back and is growing in strength. With an upbeat report on the state of the industry to kick off 2013, I would like to reflect on what I saw at NAMB National that gave me a great level of satisfaction and serves as the foundation for this missive. According to a 2004 study by Wholesale Access Mortgage Research & Consulting Inc., there are approximately 53,000 mortgage brokerage companies that employ an estimated 418,700 employees and originated 68 percent of all residential loans in the U.S. Over the years, the mortgage broker lost their foothold on their share and their current market share dipped to around 20 percent of all U.S. residential mortgages. But, that number is growing daily and is projected to reach in excess of 30 percent in 2013. Attending an event of this size and magnitude is physical proof to the re-emergence of the mortgage broker in the mortgage marketplace. The education and tips taken from the sessions at NAMB National are things I plan to implement into my own day-to-day business plan. I would equate the ambiance and vibe of this show to the NAMB Annual Conventions of the late 1990s-early 2000s. Sure, some things have changed, but a renewed spirit of market resurgence and industry rebound are the primary characteristics I will take from this event. NAMB keeps the information coming as in less that two months, the association will descend upon Washington, D.C. for the NAMB 2013 Annual Legislative & Regulatory Conference. You have heard the term “must-attend” event thrown around promoting things, but with all of the changes that the CFPB threw at the mortgage industry to start the new year, what better place to get yourself up to date with all of these changes than with your peers in our Nation’s Capitol. Also as part of the event, you will have the unique opportunity to lobby on Capitol Hill and meet with your elected officials. Learn the inner-workings of the legislative arena and march with your peers in face-to-face meetings with your senators and representatives and let them know how you feel about the government’s policies and regulations. Take advantage of the opportunity to educate your D.C. decision-makers on just what you do for their constituents and how their votes in the hallowed halls of Congress can and will impact you as well as their voters.

This month’s focus … This month, we take a closer look at mortgage industry employment. Are you happy with your current situation? Do you feel there is more for you to advance in the mortgage profession? Our six contributors have assembled a guide to tips for you, whether you are looking to better your current employment situation, to seeking new options. Also included is our annual “Who’s Hiring Report,” featuring some of the industry’s biggest and brightest firms looking to fill their employment needs. Also this month, we take honor two individuals for their tremendous dedication and service to the industry. On page 34, we recognize our January NMP Mortgage Professional of the Month, Charles Wagner, senior vice president of the lending division of CBC National Bank by David J. Coster. On page 23, longtime active NAMB member Don Fader from Kinston, N.C. is recognized in another piece by Mr. Coster. Don was honored at the recent NAMB National event for his service and dedication to the industry as NAMB Mortgage Professional of the Year and this month, we feature an in-depth look at Don and recount his service and accomplishments in the industry. There is still much more that I have yet to touch upon with this issue, but don’t let me hold you up. Dig right into the January 2013 issue and start the year off the right way with an issue chock-full of insight and information geared to kick-start your business in the new year. Sincerely,

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

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CFPB starting 2013 off with a bang As the dust begins to settle on 2012 and we enter a new year, the Consumer Fiancial Protection Bureau (CFPB) has started the year off with a bang … throwing a boatload of new rules and regulations at the mortgage industry. Over the course of one week, the CFPB submitted proposed rules on everything from qualified mortgages (QMs), to ability-to-repay, loan originator (LO) compensation requirements, to appraisals … all under the terms and conditions of the Dodd-Frank Act in order to simplify the homebuying process for the consumer and streamline the housing finance industry. Have no fear as your industry trade associations are hard at work scouring over the pages of all these new regulations and getting the word out about any ill effects they may have to your business. I urge you to stay tuned to NationalMortgageProfessional.com as your daily update and guide to tracking the progress of the CFPB’s measures and how you must alter your business practices in order to remain in compliance with this ever-changing mortgage landscape.

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O F F I C E R S

The Association of Mortgage Professionals

National Association of Professional Mortgage Women

2701 West 15th Street, Suite 536 v Plano, TX 75075 Phone #: (703) 342-5900 v Fax #: (530) 484-2906 Web site: www.namb.org

P.O. Box 451718 v Garland, TX 75042 Phone #: (800) 827-3034 v Fax #: (469) 524-5121 Web site: www.napmw.org

NAMB 2012-2013 Board of Directors

National Board of Directors 2012-2013

Donald J. Frommeyer, CRMS—President Amtrust Mortgage Funding Inc. 200 Medical Drive, Suite D v Carmel, IN 46032 (317) 575-4355 v dfrommeyer@amtrust.net

President Candace M. Smith, CME (512) 306-6354 president@napmw.org

Vice President—Northwestern Region Debbie Tofte, GML (425) 483-3359 dtofte@gmail.com

John Councilman, CMC, CRMS—Vice President AMC Mortgage Corporation 11920 Fairway Lakes Drive, Suite 2 v Fort Myers, FL 33913 (239) 267-2400 v jlc@amcmortgage.com

President-Elect Jill Kinsman (206) 344-7827 jill.kinsman@usbank.com

Vice President—Western Region Lyman King III, CMI, CME (916) 967-4653 lking@gemcorp.com

Fred Arnold, CMC—Treasurer American Family Funding 24961 The Old Road, Suite #101 v Stevenson Ranch, CA 91381 (661) 284-1150 v fred.arnold@affloans.com

Senior Vice President Christine Pollard (607) 226-1046 cpollard1046@gmail.com

Secretary Sara Vasura (703) 255-7460 svasuranapmw@gmail.com

Kay A. Cleland, CMC, CRMS—Secretary KC Mortgage LLC 200 South Wilcox Street #224 v Castle Rock, CO 80104 (720) 810-4917 v kay@kcmortgagecolorado.com

Vice President—Central Region Kelly Hendricks (314) 398-6840 khendricks@fsbfinancial.com

Treasurer Jeanne Evans, CME (918) 431-0155 drmjevans@att.net

Jim Pair, CMC—Immediate Past President Mortgage America Corpus Christi Inc. 22800 Bulverde Road, Apt. 1402 v San Antonio, TX 78261 (361) 774-7314 v E-mail: jlpair@aol.com

Vice President—Eastern Region Katrica J. Driscoll, MML, CME, CMI (919) 877-5683 kdriscoll4@nc.rr.com

Parliamentarian Hulene Works (972) 494-2788 admin@napmw.org

Rocke Andrews, CMC, CRMS—Director Lending Arizona LLC 1996 North Kolb v Tucson, AZ 85715 (520) 886-7283 v randrews@lendingarizona.net

National Consumer Reporting Association

Rick Bettencourt—Director Mortgage Network 300 Rosewood Drive v Danvers, MA 01923 (978) 777-7500 v rbettencourt@mortgagenetwork.com

Andy W. Harris, CRMS—Director Vantage Mortgage Group Inc 15962 SW Boones Ferry Road, Ste. 100 v Lake Oswego, OR 97035 (503) 496-0431, ext. 302 v aharris@vantagemortgagegroup.com

Linda McCoy—Director Mortgage Team 1 Inc. 6336 Piccadilly Square Drive v Mobile, AL 36609 (251) 650-0805 v Linda@mortgageteam1.com Dick Morin—Director Consumers First Mortgage P.O. Box 918 v Kennebunk, ME 04043 207-985-2895 v dick@consumers1stmortgage.com Valerie Saunders—Director RE Financial Services 13033 West Lindburgh Avenue v Tampa, FL 33626 (866) 992-0785 v valsaun@gmail.com

Daphne Large President (901) 259-5105 daphnel@datafacts.com Maureen Devine Vice President (413) 736-4511 mdevine@strategicinfo.com Donald J. Unger Ex-Officio (303) 670-7993, ext. 222 don@advcredit.com Mike Brown Treasurer (800) 925-6691, ext. 4350 mike.brown@ncogroup.com Nancy Fedich Director–Chair Legal Committee (908) 813-8555, ext. 3010 nancy@cisinfo.net William Bower Director–Chair Tenant Screening Committee (800) 288-4757 wbower@continfo.com Tom Conwell Director–Liaison Legislative Committee (800) 445-4922, ext. 1010 tconwell@credittechnologies.com

Judy Ryan Director–Chair Strategic Alliance Partnership Committee (800) 929-3400, ext. 201 jryan@kroll.com Renee Erickson Director–Chair New Membership Committee (866) 932-2715 renee.erickson@acranet.com Sharon Bieszk Director (262) 542-1700 sbieszk@wititle.com Mary Campbell Director (701) 239-9977 mary@advantagecreditbureau.com Terry Clemans Executive Director (630) 539-1525 tclemans@ncrainc.org Jan Gerber Office Manager/Member Services (630) 539-1525 jgerber@ncrainc.org

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John Stevens—Director Bank of England d/b/a ENG Lending 11650 South State Street, Ste. 350 v Draper UT 84020 (801) 427-7111 v jstevens@englending.com

2013 Board of Directors & Staff

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

Olga Kucerak, CRMS—Director Crown Lending 328 West Mistletoe v San Antonio, TX 78212 (210) 828-3384 v olga@crownlending.com

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D I R E C T O R S

Donald E. Fader, CRMS—Director SMC Home Finance PO Box 1376 v Kinston, NC 28503-1376 (252) 523-5800 v dfader@smchf.com

701 East Irving Park Road, Suite 306 v Roselle, IL 60172 Phone #: (630) 539-1525 v Fax #: (630) 539-1526 Web site: www.ncrainc.org


Thinking Outside the Box Can Help Grow Your Referral Base By Jake Soley

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A referral base is mandatory in order to survive the mortgage business cycle. Without a referral base, your business could be in jeopardy when refinances dry up. Most loan originators think of networking with real estate agents, financial advisors and their community when building a referral network. While those are great ways to acquire new referrals, direct mail may be the most effective way to quickly build a referral base on a grand scale. For over six years, I have specialized in targeted marketing, with many of my personal clients relying on direct mail campaigns as a tool to drive new referrals into their business. Typically, referrals are generated from someone you have done business with or have closed a loan for. You build a good rapport with the borrower and due to the trust and confidence they have placed in you, they will refer their friends when they express a need for your services. Now think of direct mail leads as “pre-qualified referrals.” With a targeted direct mail campaign, you not only build a pipeline of deals, you also open the door for every lead that responds to become an ambassador for your business. Take, for example, a direct mail campaign of 5,000 pieces. On average, this will generate 50 in-bound leads and close at least 10 loans. So with only 10 of the 50 closed, what happens with the other 40 that didn’t convert? Are they worthless? These consumers expressed an interest in your company, so this is your chance to make a lasting impression that could double your inbound leads. By simply incorporating a request to refer two friends, those 40 inquiries could easily double to 80 new prospects. Consumers typically keep company of the same demographic, so if you’re using pre-screened data on your mailing campaigns, the likelihood of the new referrals being similar to the original borrower is considerably high. With this simple application, your mail campaign that generated 50 inbound calls now has the potential to be as high as 150 new prospects! Think of the possibilities with more direct mail pieces in circulation. The numbers are exponential. A common shortfall when building a referral base is in customer retention. It’s common for originators to forget about the borrower once their loan has closed. As time goes on and the loan is sold off to other servicers, many borrowers forget about their original loan officer when their need to refinance or purchase reoccurs. This holds true when it comes to referral business as well … if the borrower doesn’t remember you, who are they going to recommend their friends to? Instead, they turn to the current company that sends their monthly mortgage statement. To offset this potential loss of business, mailing your customers at a minimum of a bi-monthly cycle will keep you fresh in their minds. Simple letters of new company advancements, milestones or events will keep you in the forefront of their minds so that when their needs or the needs of their friends and colleagues arise, they immediately think of you. To maximize the effort, request referrals and offer incentives for referring friends in each newsletter. Remember: Closed loans require asset management. These borrowers can be as valuable to you after they closed their loan as they were the day you first spoke. Relying on a real estate agent to refer your business shouldn’t be your only option to generate more referral business. Putting a plan in place now with some simple strategies will build momentum and create a thriving referral business. In the ever-changing mortgage industry, having multiple options to build your business is a necessity and will keep you ahead of your competition. Jake Soley, an asset at 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 jake@titanlists.com.

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The 2013 Mortgage Professional and Real Estate Agent he topic regarding lender/real estate agent gridlock that I hear from mortgage colleagues across the nation has been lingering on for years and I cannot help but write about it this month. It’s not an everyday occurrence, but worth discussing. In prior years and primarily during the housing boom, I feel that the mortgage industry painted a bad picture regarding who we are and what it is we do. During that time, there were unqualified, and at times, unethical people, in the industry which most are aware of from the sub-prime meltdown, etc. Unfortunately these individuals commoditized the mortgage process in the eyes of others and shielded them from realizing the significance and importance of our role during the home purchase and sale process. Times have changed and it is important that we all adapt and work together for the sake of our clients as housing professionals. Real estate agents provide a great service to consumers when buying or selling a home. There has never been a more important time to have a quality real estate professional supporting the goals of the consumer, especially after the changes in the housing and mortgage markets. With so many changes in the mortgage climate over the last few years, the primary concern we tend to hear is how many real estate agents are actually informed and have adapted? The mortgage process is the most important and most misunderstood process of the transaction. Financing is vital for both the buyer and seller when dealing with a non-cash purchase or sale. How the real estate community has adjusted will determine the expectations they set with their clients, resulting in a positive or neg-

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“Coming together is a beginning. Keeping together is progress. Working together is success.” —Henry Ford

ative outcome to consumers. To improve the future of our new industry, lenders and real estate professionals must successfully work together. They must be able to do so without special interests and with the ability to adapt to any situation or personality for a successful closing. Adaptation allows everyone to avoid delays and better prepare for “blanket” requirements on agency-backed loans which all carry similar underwriting criteria. This is a fast-paced and high demand industry, but we can improve the experience our clients have and find more enjoyment in working together through communication and education. Both sides need to be accountable, but the following traits are what seem to be common in superstar mortgage originators and real estate professionals in today’s housing market.

Superstar habits n They have mentally adapted to accepting the changes we all face in the mortgage process. n They tend to have more volume or more recent transactions that allow them to adapt to these changes more quickly, or they have self-education in place of recent activity to help adapt. n They conduct themselves professionally, putting their client’s interests before their own. n They set realistic and accurate expectations for their clients. continued on page 41


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Three Reasons You Should Join the Professionals at Directly.com Now By Carolyn Warren

Directly.com is the new online community where borrowers can meet mortgage professionals as they receive answers to their questions. Savvy originators are joining early to build their reputations and earn rewards. I’ll show you how to do this in a moment; but first, I’ll explain why I think communities like Directly are important and three reasons you should consider becoming a part of it. Five years into the crash, borrowers are still reeling. Homebuyers are frustrated with the mound of paperwork, and they’re baffled by underwriting conditions. Homeowners looking to refinance are being blocked by poor appraisals and stiffer credit requirements. People seeking loan mods complain of being stonewalled or misled with double-talk. All of these folks need answers—and that presents an opportunity. Institutions and regulations are ever-changing—purportedly in an effort to help borrowers—but the reality has been higher costs, slower processing, and continued confusion. Surprisingly, while the Internet is revolutionizing industry after industry, its impact on any aspect of mortgage outside of origination has been minimal. But things are changing. Online real estate communities are springing up around popular real estate websites like Trulia and Zillow, allowing consumers to speak quickly and openly with a broad set of professionals. Many of the extraordinary dynamics of these sites, and social networks like Facebook and LinkedIn, promise to bring a new level of trust and transparency to the area of mortgages. Consumers are sick and tired of feeling like they are in the dark. Directly.com is the first community designed to help borrowers with specific questions about their mortgages via answers that come from a narrow set of experienced mortgage professionals that provides rewards to the professionals. Here are three specific reasons I think you’ll want to join the site:

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1. Reputation. Online reputation has become critical to success. As a Directly professional, you receive a profile page that showcases how you’ve helped consumers. Your reputation helps you and the institution you’re affiliated with.

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2. Rewards. On Directly, you earn cash rewards from customers who offer remuneration for help. You can cash these rewards out via PayPal, or double your impact by donating them to the non-profit of your choice. 3. Reach. On Directly, in addition to reaching tens of thousands of borrowers, you can build and cultivate a following (like Twitter) of people you’ve helped in the past, and use this network to drive referrals and a bigger audience. One silver lining to the crash is that many of the unskilled and less scrupulous originators have been flushed out. There’s a chapter in my book called, “Mortgage Stars Who Rock” that refers to the honorable loan officers who work hard to be available to consumers anytime and anywhere they’re needed. Today, consumers are benefiting from online communities that are powered by the true professionals who are focusing their careers on helping people. If this sounds like you, then you will not want to be left behind. I invite you to join me in helping good folks while you earn rewards and build a strong reputation. It only takes a few minutes to submit your application for acceptance at www.directly.com/mortgage. Carolyn Warren is the best-selling author of Mortgage Ripoffs and Money Savers: An Industry Insider Explains How to Save Thousands on Your Mortgage or Refinance. She is the owner of www.mortgage-helper.com. She may be reached at directly.com/in/carolyn-warren.

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Industry Facebook Users Enter to Win on DocMagic Page

StreetLinks Launches New Valuation Division and Software Tools

DocMagic Inc. has announced that hundreds of industry Facebook users have visited the company’s Facebook page at facebook.com/docmagicinc, voted for DocMagic’s mascot for President and been automatically registered to win an expense-paid trip to Washington, D.C. The company announced the contest Oct. 1 as part of its effort to use gamification strategies to build up its online following, which the company says is working. “The contest has already been a huge win for DocMagic,” said Dominic Iannitti, CEO of DocMagic. “Not only are people from all over our industry registering for a chance to win this great vacation to our nation’s Capitol, but they are also interacting with us through our Facebook page, in higher numbers than anticipated.” People love games, which is why gamification strategies have now been employed by companies in nearly every industry, including government services. But beyond that, Iannitti says that this experience has shown that his customers and others in the industry love DocMagic’s use of the rabbit mascot as well as the company’s staff and services, as evidenced by the conversations taking place on the DocMagic’s Facebook page. Every year DocMagic sends out thousands of stuffed magic rabbits to their customers. This year an advertising campaign announcing the Vote for DocMagic campaign coincided with the delivery of the presidential “Doc” bunnies. The first 200 people who “Vote for DocMagic” receive the presidential bunnies, which have proven to be very popular. The DocMagic Vote for DocMagic Sweepstakes is restricted to mortgage lenders, mortgage lending professionals and others from the mortgage lending industry who are legal residents of the United States and the District of Columbia (excluding residents of New York, Florida, Rhode Island and Puerto Rico), and who are 21 years or older at the time of entry. Players can only enter once. The Grand Prize is a trip for two to Washington, D.C. for four days and three nights, including airfare, hotel, tour of the Capitol and more!

StreetLinks L e n d e r Solutions has announced the launch of its new Automated Examination and Valuation Division and its suite of Quality Examination (QX) products. StreetLinks QX is a comprehensive, multiple component collateral review utility. ValueComp, the automated valuation component, uses technology to systemically replicate an appraiser’s approach to analyzing comparable selection and property valuation. ValueComp results are substantially and consistently more accurate than traditional automated valuation models (AVMs). “It would have been easier, quicker and cheaper to simply become a reseller of AVMs and rules engines, but we couldn’t bring ourselves to put the StreetLinks brand on what we believed to be substandard products. That realization drove us to develop a suite of products that analyze appraisals like nothing else ever created,” said StreetLinks President Tom Hurst. “We focused on one goal: To provide clear, concise and accurate results, while giving the user action items and directives—not simply more questions.” StreetLinks’ Quality Examination Rules Engine powers the execution of QX through appraiser-based methodology. The engine analyzes appraisal information, presenting the user with a summary of automated rule “passes” and clear directives for items that require manual examination. In the final analysis, QX mitigates appraisal risk while reducing appraisal underwriting cost and turn-time. “We have taken this to a level and depth never seen before in this arena,” said Hurst. “Our clients that participated in the build and beta of the product agree that QX delivers a significantly higher level of accuracy and has drastically reduced their collateral review time.” StreetLinks’ relationship with real estate intelligence provider, Equifax Property Data & Analytics, and their parent company, global information systems leader, Equifax, will power the ValueComp component of the QX suite. “Equifax shares the same drive for innovation that we have at StreetLinks,” said Donna DelMonte, StreetLinks’ sen-


ior vice president of product development. “The relationship with Equifax will allow us to collaboratively launch a multitude of solutions over the coming years.”

Total Mortgage Recognized by Inc. Magazine for Excellence in Job Development

and loan officers, but other key stakeholders including investors.” TORQ will be based out of Hammerhouse’s corporate offices in Mission Viejo, Calif. and is already operational throughout the company’s network of offices including Hickory, N.C.; Chicago, Ill.; and Bellevue, Wash.

Kinecta Reports $3 Billion-Plus in Mortgage Volume Total Mortgage Services LLC has announced that it has been recognized among the first group of growing privatelyowned businesses and entrepreneurs to receive the Inc. Hire Power Award, a brand new Inc. awards series that spotlights companies that are generating the most new jobs. Over the past three years, Total Mortgage created 75 new jobs and now has over 120 employees, ranking third among Connecticut firms on the list. “It is an honor to be recognized in this unique category of businesses that are putting Americans back to work,” said John Walsh, president of Total Mortgage. “In these challenging economic times, we are proud to have been able to grow our team. I’m very proud of our employees and I think our dedication to quality and service will allow us to continue to thrive in the coming years.” Total Mortgage was also recently named on Inc. Magazines’ list of America’s Fastest Growing companies in 2012, for the third year in a row. The Hire Power Awards rank forprofit and nonprofit companies by net employee growth over the past three years. Together, the companies on the list created more than 73,000 jobs in the past three years which generated approximately $5 billion in tax revenue.

K i n e c t a F e d e r a l Credit Union has reported a record mortgage volume of just over $3 billion, exceeding its 2011 volume with the fourth quarter still remaining. Kinecta has benefited

from dramatic shifts among many of the major lenders, combined with Kinecta’s own strategy for continuing growth. “The mortgage market is showing marked improvement and with that we have been able to offer significant benefits to our members,” said Joseph Whitaker, executive vice president and chief operating officer of Kinecta. “Kinecta offers competitive low rates and a broad product menu and we will continue to do so as we move forward, continually growing as a national mortgage lender.” Kinecta Federal Credit Union is a direct lender providing a range of fixed and adjustable home loans for purchase or refinance. It offers attractive

loan products through agency, portfolio, and FHA lending, in addition to correspondent lending and special loan programs offered in conjunction with leading mortgage insurance providers.

DataQuick and RentRange Partner on REO Foreclosure Prevention Solution

DataQuick, a provider of advanced real estate information solutions powered by data, analytics and decisioning, and RentRange, a provider of rental market continued on page 10

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Hammerhouse Launches Mortgage Operations Talent Recruiting Division NationalMortgageProfessional.com v

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Hammerhouse LLC has announced that it has launched a new division, Tactical Ops Recruiting Quality or “TORQ,” which will focus on the placement of experienced mortgage banking operational and other non-sales professionals throughout the U.S. TORQ, which will be powered by Hammerhouse’s best in class support and service to client partners, is being rolled out nationwide and has been engaged by multiple clients to assist in hiring operations talent to enhance their operational infrastructure and improve customer satisfaction. “The effectiveness of mortgage operations, which is driven by top talent, is a significant advantage in today’s mortgage industry and will define the next generation of Mortgage Bankers,” said Drew Waterhouse, managing director and chief executive officer of Hammerhouse. “TORQ is being launched as a direct result of our mortgage banking clients need to expand their sales force to remain competitive, without impacting the customers’ experience. These clients understand that having the right operational talent in place will build trust not only with customers


NCRA Celebrates 20th Anniversary at Tampa Conference NCRA becomes National Consumer Reporting Association

By Terry W. Clemans

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n combination with celebrating its 20th anniversary of representing consumer reporting agencies providing data to the housing industry, the National Credit Reporting Association has changed its name to the “National Consumer Reporting Association.” This change was announced at its annual national education conference in Tampa, Fla. in November where the members selected the new logo. The conference was highlighted by more than 160 people learning from a vast group of speakers from private sector, government and two of the national credit repositories. The Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and U.S. Justice Department were all represented, covering issues on credit reporting, tenant screening and employment screening. In addition to the educational sessions, there were good times at the feature event, a Cuban street festival with live Latin music, food, drinks, games and cigars hand-rolled on site. Compliance was a major feature of the educational sessions, as the CFPB and Experian covered issues related each of their respective audits. Another hot topic, desperate impact, was a group discussion lead by NCRA Counsel Larry Henry. Desperate impact has taken a much higher profile in recent months, even though the concept dates back nearly 40 years in Civil Rights law. The ability to obtain criminal data and credit data in the future will be weighed with consideration of desperate impact to make sure there is

factual performance related to the use of the data. From the entertainment perspective, several NCRA members provided highlight reel coverage of the power of hypnosis as they went under the spell of Erick Kand. Erick specializes in corporate hypnosis and provided an entertaining lunch experience for both those on the stage and in the audience. NCRA believes that changing the word “credit” to “consumer” in their association name, the new name more accurately reflects our members’ products. A consumer report is the legal term for what our members provide, as defined in the federal law that regulates the credit industry. Regardless of the specific industry format, mortgage, tenant or background screening, NCRA members provide crucial information for housing-related decisions. The majority of NCRA’s original membership provides credit reports to the mortgage lending industry. Other consumer information products and services relating to or required by mortgage lenders such as flood zone determinations, IRS tax transcripts, and fraud prevention tools, have become commonplace in the NCRA member service portfolio. Many NCRA members also provide information to the multifamily housing industry; they produce credit reports, eviction records, and criminal background histories for landlords and property managers making rental decisions. Some members are heavily entrenched in full-service background screening as well. The term “consumer report,” as defined in the Fair Credit Reporting Act, is the umbrella that covers all of the members’ products and services. “It’s an exciting time at the National

2013 NCRA President Daphne Large receives the gavel of association leadership from Executive Director Terry Clemans NCRA Counsel Larry Henry discusses desperate impact with the audience

Erick Kand, who specializes in corporate hypnosis, provided an entertaining lunch experience Consumer Reporting Association as we celebrate our 20th year and reflect on how the industries we serve and our business have evolved during this time,” said NCRA President Daphne Large. “Our name change reflects this evolution. We are most fortunate to have a highlytenured and experienced Board of Directors along with the outstanding leadership and representation of our executive director, Terry Clemans.” This is the second growth-related name change in NCRA’s 20-year history. The organization was founded in 1992 as the National Association of Independent Credit Reporting Agencies (NAICRA). In

The crowd listens attentively to the panel discussion response to requests by companies affiliated with one of the three national credit bureaus, NAICRA became NCRA in 1996. Removing the word “Independent” from the name allowed membership inclusion for those affiliated companies previously prohibited from their ranks. The current name change is in response to better representation of the membership’s growing business model. Terry W. Clemans is executive director of the National Consumer Reporting Association (NCRA). He may be reached at (630) 539-1525 or e-mail tclemans@ncrainc.org.


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9

Make sure you’re in compliance with LQI and protected from buybacks. Regulations are going to get tougher tougher.. The GSEs GSE are workingg on additional suggestions to make sure your loan is sell-ready in 2013. Can you afford not to use Undisclosed Debt Monitoring?

ss!LLERTSYOUTOSUSPICIOUSACTIVITYCONCERNINGNEWTRADELINES ERTSYOUTOSUSPICIOUSACTIVITYCONCERNINGNEWTRADELINES inquiries and secondary re-issues

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VI S I T US A ATT T HE R EG I O NA L CO NF ERENCE O F MBAS MAR C H 13-14 * According to Equifax’ Equifax’s uifax’’s recent review of 4,800 loans from the undisclosed debt monitoring database, 22% of new trades were reported 10 days or less prior prior to closing.

Š 2013 Credit Plus, Inc.

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If you don’t have solid answers to the above questions, consider one of the industry’s proven successful and most effective tools to accomplish these goals: Platinum Marketing from Mortgage Success Source. It gives you the one-two punch you need to achieve greater success—effective content specifically targeting referral partners, as well as an easy-touse marketing system that guarantees you’ll set yourself apart from the competition, simply and easily. Developing high-impact, credible marketing content and keeping it up-to-date can be a daunting task for your already over-worked team. But it doesn’t have to be. Platinum Marketing has an extensive library of e-mail, print and social media and video campaigns, updated with the freshest content designed by professionals and fueled by the industry’s finest writers. But great content is not enough. You need to confidently and consistently brand you and your company at every touch point including on your e-mails, newsletters, postcards and flyers. One way to do this is to personalize each marketing piece with your name, contact information, photo and logo, and Platinum Marketing allows you to do this with ease. This not only allows you to “buy brain cells” and stay in front of your referral partners minds, it establishes professional trust and confidence in you as the individual they recommend to their clients to do business with for their mortgage. If you’re like most mortgage professionals, you don’t have a spare minute in your day. How do you find the time to get your message out? Your time is valuable and you have to use it wisely to ensure you reach your goals. The automated marketing engine from Platinum Marketing is just the solution. You can quickly and easily schedule and deploy targeted outbound marketing campaigns that reach your referral partners at the right time via e-mail, print and social media syndication. With Platinum Marketing you have the tools you need to build and maintain profitable referral partner relationships and make 2013 your best year yet. To learn more about any of the business-building resources from Mortgage Success Source, visit MortgageSuccessSource.com or call (800) 963-1900. Sue Woodard is president of content and publishing for Mortgage Success Source in Holmdel, N.J., a provider of integrated marketing and sales support solutions. She can be reached by e-mail at swoodard@mssllc.com.

SPONSORED EDITORIAL

Mortgage Professionals to Watch

n Residential Finance Corporation has announced the addition of Jonathan Fowler as division vice president of business development for retail branching. RFC has also announced the promotion of Joe Buxton to the position of vice president of sales where he will oversee and manage the company’s branch managers in Columbus, Ohio and develop sales strategies to further Residential Finance’s market growth.

LEOPOLD

n Mortgage Contracting Services LLC has announced the addition of Bobby Leopold as vice president of business development where he will focus on generating new business and play an active role in advancing MCS’s overall growth and development.

NOGAKI

n What system do I have in place currently that keeps me at the forefront of my referral partner’s minds? n How will I ensure that I capture more referred leads over the coming year? n What methods am I using to develop relationships and begin to gain business from new referral partners?

intelligence, have partnered to offer REO-to-Rental and rental valuation intelligence to lenders, servicers and investors. REO-to-Rental has become a viable option to keep foreclosure properties occupied, offering renters a home; lenders and servicers a return on investment; and investors an understanding of property and portfolio value. The key to successful REO-toRental or REO purchases, like any real estate decision, is to know the fair market value of a property. “When evaluating the suitability of a REO to purchase as a rental, the income potential of the property, vacancy rate and local market characteristics are all key metrics to be considered,” said Walter Charnoff, founder and CEO of RentRange. “Our unique dataset provides authoritative, granular and timely rental market intelligence necessary for REO-to-Rental assessment.” DataQuick customers will be able to access RentRange data as part of a DataQuick National Property Database file license. The company also expects to include RentRange content as part of its RiskFinder suite of portfolio management solutions. “History shows us that recovery from every economic downturn our country has faced has been led by the housing market,” said John Walsh, president of DataQuick. “A more traditional recovery stemming from a robust purchase market has not come about as quickly as most would have liked, so alternatives are critical. Maximizing the rental and occupation of REOs serves to benefit renters, lenders, servicers and investors and is a viable, attractive alternative.”

n ClosingCorp has announced that Mark Nogaki has joined the company as senior vice president of sales.

MITCHELL

If you are like most successful MLOs, growing and improving your business is your primary professional goal for this New Year. While there are many ways to do this, one technique that top-producing MLOs who run rewarding and thriving mortgage practices always include in their plans is a focus on building and maintaining strong referral relationships. And to do this efficiently, they have systems in place that allow them to continually create new referral relationships, as well as profitably maintain existing ones. So the answer is clear … if you want to work with more referral partners and keep them coming back to you, then you need to emulate the top producers and implement the systems necessary to attract and nurture referral partners and reap the rewards of an expanded network of referral-based business. You may already know this, but the challenge is this: What are you actually doing about it? To get started, ask yourself these important questions:

continued from page 7

FOWLER

By Sue Woodard

heard on the street

BUXTON

Growth Strategies for the New Year: It’s All About Relationships

n Supreme Lending has named Brian Mitchell as its new senior vice president, national sales manager where he will be responsible for developing new loan production and adding new branches around the country. n Lenders Compliance Group (LCG) has appointed Alan J. Cicchetti, former Deputy Commissioner of the Connecticut Banking Department, as its director of agency relations, as well as the executive director of Brokers Compliance Group, LCG’s mortgage compliance firm that provides compliance support to mortgage brokers. n Flagstar Bancorp Inc., together with its subsidiary, Flagstar Bank FSB, have announced two appointments to the company’s executive leadership team, as Alessandro DiNello, currently executive vice president of personal financial services, has been named president and chief administrative officer of Flagstar Bank and Matthew Kerin, currently EVP, managing director of mortgage banking, has been named president of mortgage banking. n Marco Zamudio has been named operations manager for Meadowbrook Financial Mortgage Bankers. n Joel Rose has joined GMH Mortgage Services LLC as VP of the company’s eastern division’s retail sales department. continued on page 27


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This information is provided for the use of mortgage professionals only and is not intended for distribution to consumers or other third parties. Product information is subject to change without notice. HomeBridge is a division of Real Estate Mortgage Network, Inc. NMLS #6521. HomeBridge is licensed or operating with a license exemption under the name Real Estate Mortgage Network, Inc. d/b/a HomeBridge except in the following states; AK, IL, MD, MN, NY, RI, VA “Real Estate Mortgage Network, Inc.”; VT: “Real Estate Mortgage Network, Inc. d/b/a HomeBridge Funding” © Real Estate Mortgage Network, Inc. d/b/a HomeBridge. All rights reserved.

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L Florida ss: Out of r Bo chem e: S e d v u ra o ag e F erc s M o rtg Un d ast Texa Major E 203(k) Rehab Loan Program: Foreclosures Present Challenges, Opportunity NMLS an d St ate Testing fo r Mortgage Pr ofessionals

Got an opinion? Want to share your thoughts on the industry?

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It's free and easy. Just head on over to NMPMag.com, register and follow the link in the upper right hand side of the page to become a blogger on our site today!

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Then try PB FINANCIAL GROUP We have proven closing records GUIDELINES: 1. Stated and NO Doc programs available on Investment/N/o/o Properties 2. Purchase loans up to 70% of Purchase Price with no prepayment penalty and no guaranteed interest 3. Residential rates start at 8.99%, interest only 4. Residential Owner Occupied up to 55% LTV 5. Stated & NO doc up to 70% LTV with 500+ score 6. True Equity Based Loans

CFPB Issues Long-Awaited Industry QM and Abilityto-Repay Rules The Consumer Financial Protection Bureau (CFPB) has adopted a new rule that will protect consumers from irresponsible mortgage lending by requiring lenders to ensure prospective buyers have the ability-to-repay their mortgage. The rule also protects borrowers from risky lending practices such as “no doc” and “interest only” features that contributed to many homeowners ending up in delinquency and foreclosure after the 2008 housing collapse. “When consumers sit down at the closing table, they shouldn’t be set up to fail with mortgages they cannot afford,” said CFPB Director Richard Cordray. “Our Ability-to-Repay rule protects borrowers from the kinds of risky lending practices that resulted in so many families losing their homes. This common-sense rule ensures responsible borrowers get responsible loans.” The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act created broad-based changes to how creditors make loans and included new ability-to-repay requirements, which the CFPB is charged with implementing. Under the Ability-to-Repay rule, all new mortgages must comply with basic requirements that protect consumers from taking on loans they don’t have the financial means to pay back. Among the features of the new rule: Financial information has to be supplied and verified; a borrower has to have sufficient assets or income to pay back the loan; and teaser rates can no longer mask the true cost of a mortgage. “MBA [Mortgage Bankers Association] agrees that the goal of this regulation, ensuring that borrowers receive loans that they can repay, is in everyone’s best interest,” said Debra W. Still, CMB, chairman of the Mortgage Bankers Association. “We cannot, and should not, go back to the high risk lending environment of the early 2000s. Our concern has always been that we balance this goal with other housing policy objectives, particularly the objective to ensure the availability of mortgage credit to qualified borrowers. And right now, credit is tighter than at any point we can remember.” Lenders will be presumed to have

complied with the Ability-to-Repay rule if they issue “Qualified Mortgages.” These loans must meet certain requirements which prohibit or limit the risky features that harmed consumers in the recent mortgage crisis. If a lender complies with the clear criteria of a QM, consumers will have greater assurance that they can pay back the loan. Among the features of a QM include: No excess upfront points and fees; no toxic loan; and a cap on how much income can go toward debt. For a temporary, transitional period, loans that do not have a 43 percent DTI ratio but meet government affordability or other standards—such as that they are eligible for purchase by the Fannie Mae or Freddie Mac—will be considered QMs. The CFPB is also releasing proposed amendments to its Ability-to-Repay rule. These amendments would, among other things, exempt certain non-profit creditors that work with low- and moderate-income consumers. The proposed amendments would also make exceptions for certain homeownership stabilization programs, such as those that offer loans made in connection with the Making Home Affordable program, which help consumers avoid foreclosure. The proposed amendments would also provide QM status for certain loans made and held in portfolio by small creditors, such as community banks and credit unions. The proposed amendments invite comment on how to calculate loan origination compensation under the points and fees provision of Qualified Mortgages. The proposed amendments, if adopted, would be finalized this spring and go into effect at the same time as the Ability-to-Repay rule in January 2014. The CFPB is dedicated to working with industry and consumers for a smooth transition to the new rule. To help creditors with compliance, the CFPB will, among other things, be publishing plain-language translations of the regulation for lenders in booklet and video form, issuing implementation guides, and, in coordination with other agencies, releasing materials that help lenders understand supervisory expectations. As the effective date approaches, the CFPB will give consumers information about their new rights under these rules. continued on page 16


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By David Lykken

Leadership vs. Management: The Key to Success in 2013 any pundits in business have long deliberated on the differences between leadership and management. Leadership, many presume, is about inspiring people. It’s about practicing what you preach and setting an example that others will follow on their own volition. Management, on the other hand, is about directing people to accomplish a

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desired outcome. This involves setting and enforcing guidelines in order to ensure that things get done. Both managers and leaders are needed in business and every great business executive will play both roles. A leader is what we want to be; a manager is often what we must be. In the mortgage industry, however, being a leader and being a manager

aren’t so different. With ever-increasing regulations, great leaders in the mortgage industry will by necessity become great managers. A manager in any industry needs to be in control of business operations. However, with as much regulation that falls upon executives, even the leaders in the mortgage industry need to have greater control. In the mortgage industry, if you aren’t a great manager, you cannot be a great leader. In 2013, the difference between a great leader and a mediocre one will be how well those leaders manage the processes in their businesses. A great leader in the mortgage business can no longer merely provide inspiration and guidance for his people; he must also provide control and oversight for his processes. For, as time goes on, employees in the mortgage industry will be more inspired by how well you are able to manage your processes than they will be by anything else. In the mortgage business, great management is inspiring. In the mortgage business, great management is great leadership. So, let’s talk a little about how strengthening your process management will lead you to success in 2013. When you have a full understanding of everything that’s going on in your industry, you will earn the respect of your employees and the success of your business. It is now more important than ever to manage processes. It is no longer enough to originate a loan; you have to have the discipline and oversight to see your client through every step of the process. The Consumer Financial Protection Bureau (CFPB) has just released seven new rules that bear greatly on the manner in which mortgage professionals go about doing businesses. One of the most daunting of these rules is the qualified mortgage, known as the qualified mortgage (QM). Managing change as the QM is implemented is going to be labor-

intensive and time consuming. Other critical rules that will require extensive focus and determination include new servicing standards, a rule affecting compensation of loan officers, a provision about high-cost mortgages, a few rules and guidelines on appraisals, and an escrow rule related to impounding accounts and tax insurance. Is that enough for you? More than ever, leaders need to take a hands-on approach to business. Leaders will need to know the new regulations in and out, as well as take a deliberate role in implementing them in their businesses. Nothing is going to change until you take the initiative to change it. Your employees will be looking to you to guide them in this time of increasing regulation. You will have to be out in front, navigating the murky waters of compliance. It isn’t something you can delegate. You have to own the process. You have to know what’s going on and how to get your team through each step of the transition. In 2013, you will have to manage your processes in ways that you never thought possible. Are you currently taking a hands-on approach in your business? What systems are you using to make your employees more productive and more profitable? Process management, as you are probably aware, has two essential components: planning and monitoring. Your success as a leader in 2013 will depend almost entirely on how well you fulfill these two functions. First, you need to become an expert on building a plan. Crafting a strategy to implement the changes in regulations and position yourself for future changes is stage one. How has your planning been in the past? How much time do you spend on the drawing board? Let’s talk about how to build a better plan. The first important part of creating a solid plan is starting with the specifics


process management is all about. If you’re looking to provide greater motivation and inspiration to your team members in 2013, you can do it by playing an active role in guiding your organization through these difficult transitions in regulatory policy. Be on the front lines. Be involved in what is going on. Your employees are not looking for a cheerleader from the sidelines. They’re looking for someone who will get in and play the game with them. They’re looking for a Quarterback—someone who will call the plays and be there from the snap until the whistle blows. Yes, they’re looking for a leader. But, in this regulatory climate, they’re looking for a special kind of leader. They’re looking

for a leader and manager rolled into one. Are you the leader that they are looking for? If not, are you willing to become one? In 2013, many mortgage bankers will face the threat of failure. For many, the changes will be unbearable. The level of compliance faced in the industry is unprecedented. One really can’t blame those who wish to throw in the towel. However, if you’re a survivor, if you’re a strong leader that is bent on overcoming no matter the odds, there’s only one way to stay alive in 2013. Own your processes. If you can excel at managing your processes, no amount of regulation will be too difficult to implement. Your team will see you as someone who is in control and

you will be truly unstoppable. Make the decision to become a process manager today. 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 dlykken@mortgagebankingsolutions.com or dlykken@mbsteam.com.

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and working your way outward to the general ideas. The temptation may be to start with your grand vision and iron out the details as you go along. The problem is that you will usually end up missing something important. The devil, as they say, is in the details. Instead, start with the details. Start with the nitty-gritty. Start with the new rules or policies you have to implement and build your way up to a bigger vision. The second part of creating a solid plan is to be clear about who is responsible for carrying out each part of the plan. Tie each element to specific departments or employees. One of the biggest complaints employees have about their managers is a lack of clarity in their expectations. Don’t be that manager. Craft into your strategy precisely who is accountable for every element of your plan. If no one is responsible for it, it doesn’t get done. One final thing to consider in building your plan is that things never go as planned. Always have a back-up plan. Right from the beginning, weave into your strategy alternative options you can take if the situations change. Be flexible and adaptable. As a professional in the mortgage industry, you need those skills more than anyone else. After you’ve created a solid plan and have begun to implement it, you must begin to monitor the progress of your plan. If you aren’t paying attention to how well your team is carrying out your plan, how will you ever know if it works? After you begin implementing the changes in your business, set up key metrics to monitor from each employee and each department. Generate progress reports to show employees how well they’re meeting their expectations. Keep everyone on their toes. Keep everyone moving forward. Own the process. If you don’t take control in 2013, you’re going to lose it completely. Now, more than ever in the mortgage business, the philosophy is adapt or die. The Consumer Financial Protection Bureau isn’t going away any time soon and it is likely to play a greater role in your business operations as time goes by. After you’ve developed the perfect plan and extensively monitored its success, everything might just change all over again. You have to be able to roll with the punches and pick right back up developing a new plan to implement new changes in your business. You aren’t becoming a part-time process manager. From here on out, you have to throw yourself wholeheartedly into owning your processes. You have to be in constant process-management mode. You have to be in constant planning, constant monitoring, and constant adapting. If you are to succeed, you’ve got to change your perspective. You can’t lead your business from an ivory tower. You’ve got to get into the trenches and get your hands dirty. You have to touch everything that happens in your business. That’s what


nmp news flash NMLS

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Education E duc d cation pose of providing providing education Organized purpose education tto o pr professionoffe essionOr ganized ffor or the pur tgage industry, industry, N mortgage NAPMW NAPMW off offers ers educaeducaals in all phases of the mor manyy vvenues enues – seminars and w workshops orkshops held ar around ound the tion via man country, on-line,, and at at its Na National tional EEducation ducation C Conference onference held country, on-line May. each M ay. NAPMW access to to timely educaeducaNAPMW membership gives gives you you exclusive exclusive access tion regarding affecting career our car eer such as a regarding the regulations regulations aff ecting yyour FREE TO industry updates updates AND TO MEMBERS monthly monthly webinar webinar on industry our 8 hour NMLS continuing education offering ss off ffe ering (NMLS continuing educa tion class Provider Provider # 1400309) 16

Leadership Leadership

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If If you you believe believe in helping to to elevate elevate the educational educational standards standards of this industry, industry, or assisting in developing developing the most competent competent industry work industry w ork force, force, then you you believe believe in NAPMW. NAPMW. NAPMW since women NAPMW is not a women’s women’s organization. organization. But sinc ew omen make up the major majority profesmortgage/banking pr ofesity of professionals professionals in the mortgage/banking sion, our purpose purpose is to to help them advance advance in business, business, personal, personal, and leadership development. development.

Net work o kiing Networking NAP NAPMW MW is a ccommunity ommunity of near nearly ly 2,000 professionals professionals acr across oss the C Country ountry who engage in the mor mortgage tgage / bank banking ing industr industry. y. Men Men and w women omen fr from om all backg backgrounds rounds ha have ve joined NAP NAPMW MW because yers who want want e xcelthey want want tto oe excel xcel aatt wha whatt they do do.. Emplo Employers excelNAP for up-to-date up-to-date lence lenc e from from their employees emplo e yees engage eng with NAPMW N MW for education. educa tion. B Both oth pr professionals p ofessionals and emplo emp employers have ve ffound ound ther there e is yers ha a plac place e ffor or them in NAP NAPMW. MW W.

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To T o Join NAP NAPMW MW W visit: www.napmw.org w ww.napmw.o org or ccall: all: 1-800-827-3034 1 800 827-3034 1-800-8 827 8 3034 Have Ha ve Q Questions? uestion ns? Please ffeel eel free free to to e e-mail -m mail us a at: t: napmw1@aol.com napm w1@aol.c . om

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Flagstar Sells $1 BillionPlus Commercial Loan Portfolio to CIT Flagstar Bancorp Inc., the holding company for Flagstar Bank FSB, has announced that, effective Dec. 31, 2012, it has entered into a definitive Transaction Purchase and Sale Agreement under which a whollyowned subsidiary of CIT Bank, the U.S. commercial bank subsidiary of CIT Group Inc., will acquire a substantial portion of Flagstar’s Northeast-based commercial loan portfolio. “This transaction is another step in renewing Flagstar’s focus on our community banking operation in Michigan and our national mortgage business,” said Michael Tierney, Flagstar president and CEO. “Flagstar is the largest bank headquartered in Michigan, and we are focused on being a best-in-class national mortgage lender and leading supercommunity bank. We remain deeply committed to improving the quality of our earnings within a disciplined lending framework, and today’s transaction helps us decrease our risk profile while improving our balance sheet flexibility.” Under the terms of the Agreement, CIT will acquire $1.264 billion in commercial loan commitments, $785 million of which is currently outstanding. The loans sold consist primarily of commercial real estate loans, asset-based loans and equipment leases. “We are pleased to be able to acquire a pool of commercial loans that complements our existing corporate finance portfolio and will further expand our middle market customer base,” said Nelson J. Chai, president of CIT. “We will continue to look for opportunities to deploy our capital in transactions that generate good returns.”

NAMB Calls for SBA Small Business Panel to Examine Impact of CFPB’s Qualified Mortgage Rule

NAMB—The Association of Mortgage Professionals applauds the efforts of the Consumer Financial Protection Bureau (CFPB) to finalize the Ability-to-Repay rules mandated by the Dodd-Frank Act, also known as Qualified Mortgages (QMs). NAMB has, and continues to be, a proponent of ensuring that consumers have an ability to repay mortgage loans. NAMB applauds the CFPB’s efforts to reach out to the industry for feedback regarding these rules as the Bureau has been tasked with the very difficult job to create a rule to protect consumers from poorly-designed loans, such as pay-option ARMs and no-doc loans. Yet, the CFPB also cannot limit consumer choice by creating an uneven

playing field between the “Too Big to Fail” institutions and the thousands of small businesses originating loans today. The primary concern of NAMB with the QM rule surrounds the DoddFrank Act’s mandate of a three percent cap on points and fees. “We believe permanently removing certain loan programs with risky features such as no-doc loans to W-2 borrowers will help the housing market in the long run,” said NAMB Government Affairs Committee Chair John H.P. Hudson. “However, arbitrary caps on points and fees which do not impact a consumer’s ability to repay, without any clear definitions, will ultimately harm consumers by reducing competition, raising borrower costs and promoting the policies of ‘Too Big to Fail’ institutions. The congressional intent of the Ability-to-Repay Rule was not to put the CFPB in a position of picking industry winners and losers.” NAMB feels that the CFPB’s QM rule can potentially promote a bias against non-creditor mortgage companies. The three percent cap on points and fees not only has the potential to discriminate against small business entities, but it has the potential to limit access to credit for lower loan amount consumers which typically are considered low- to moderate-income consumers. “Homeownership is the key to wealth generation in this country for many Americans,” said NAMB President Don Frommeyer. “Overly restrictive definitions of the QM could lead to many Americans being forced into a permanent class of renters. NAMB membership works to protect equal access to credit for all consumers, not just those whom can afford to buy more expensive houses.” The CFPB will be seeking further comment on the QM definitions. NAMB officially calls for the CFPB to convene a small business review panel to study and learn the impact that the QM rule will have on thousands of small business owners, employees and the consumers in areas typically underserved by Too Big to Fail institutions. “Utilizing the Small Business Regulatory Enforcement Fairness Act (SBREFA) process will help Director Cordray and his staff better understand the impact certain provisions of the QM will have on small businesses and the consumers they serve,” said Hudson. NAMB officials will continue to review the final QM Rule and will issue further comment. “Consumers deserve protection from bad mortgage products,” said Frommeyer. “However, the unintended consequences of ‘one size fits all’ regulation will ultimately harm the very people it is meant to protect. In today’s environment of historically low interest continued on page 19


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Managing for the Future: Firing the Wrong People By Dave Hershman

n my book, The Complete Mortgage Management Kit, I define five rules of management:

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1. Hire the right people 2. Fire the wrong people 3. Tell the right people what their jobs entail 4. Give the right people the tools necessary to do their job. 5. Monitor, but get out of the way. Clearly, the most important rule is to hire the right people. If you hire the wrong people, you will never be a good manager. End of conversation. However, sticking with the wrong people can be just as devastating to your business model. The cost you will incur entails more than the results of poor performance. Managers think they are all powerful,

but they are not. Sticking with poor performers represents your greatest impediment to implementing your recruitment plan. A manager tends to spend up to 80 percent of their time supervising the wrong people and the opportunity costs they incur as a result are very, very significant. These costs include lost time and additional stress. Just to accomplish something that is impossible: trying to make the wrong people into the right people. Why is it so hard? Because of the great myths of employee development: n Myth #1: They are not succeeding because I am not a good manager. At the worst, you have not truly defined the job so that you do not have a good handle regarding why they are failing and by how much. At best you have hired the wrong person for the job (see Rule Number One).

n Myth #2: If I ignore the problem it will go away or become better over time. Even the worst performers have bouts of efficiency that will enable you to justify this statement. Performance problems do not fly away. Yes, you might retire first. More likely they will quit first because they are as miserable as you. How many times were you relieved over a resignation? This is a bad sign! Remember leaders are proactive. Anytime you go to the office in hope that the employee will make this decision for you, you have already wasted much too much time. Want another bad sign? I know managers who have called loan officers and asked them—do you still work here anymore? If you have to ask—they are either not working or working somewhere else. n Myth #3: They are just in the wrong position. Do you have a job they can do adequately? Then make the move! Don’t transfer them to another division and make them someone else’s managerial problem. n Myth #4: But dealing with problems is my job as a manager! No, eliminating or preventing problems is your job. Who said that managers need to hit themselves on the head with a hammer to become successful? n Myth #5: If I can just get them to do this or that right, they will “cut the mustard.” Yes, if you coach and coach and coach, they might become adequate. They will never become peak performers. Your success will be dependent upon how many peak performers you have.

We have them! Do you? Because we bond thousands of mortgage companies across the country we use our buying power and leveraged competition among multiple surety companies to offer underwriting parameters and lower rates that other bond agencies only wish they had. Don’t wait for your bond’s expiration. Trade in your overpriced bond for a new bond – And start saving money today!

“A manager tends to spend up to 80 percent of their time supervising the wrong people and the opportunity costs they incur as a result are very, very significant.”

Anyway, how does one cut the mustard? n Myth #6: If I have too many peak performers, won’t one of those whippersnappers go after my job? Yes, they will. After you are promoted or you expand your company. The more peak performers you have, the better your unit will perform and the more likely you will be promoted. If not, one of them will pass you by! It is absolutely true that offices with top performers will attract top performers. People who excel understand the need to be surrounded by others from whom they can learn. They also like a challenging environment. So just keeping less-than-mediocre performers around will hamper your recruiting efforts not only by using up your most precious resource—time—but by creating the wrong environment. Should I just go back to the office and fire someone? We are not usually in a position to do this, because you have not dealt with the problem adequately. If you have been ignoring the problem for two years, you cannot just come in and make a move. Your company probably wouldn’t enjoy the legal liability of a Valentine’s Day Massacre. What you would like to do is to make up your mind to take the steps necessary to bring the problem to a closure. Make the commitment and then act! Moving to Rules #3 and #4 will help you do just that, because these rules deal with the correct creation of expectations and making sure that you and the employee are fulfilling these expectations. 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.


nmp news flash

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rates and an economy finally showing signs of recovery, the CFPB should continue to work with the mortgage industry to ensure that consumers still have availability to affordable credit. NAMB looks forward to working with the CFPB to ensure the rule is fair for all.”

Conforming Loan Limits to Remain the Same in 2013

Mortgage Banker Profits Increase to Nearly $2,500 Per Loan in Q3

Kurt Gonzalez Branch Manager 5072 W. Plano Parkway, Ste. 200 Plano, TX 75093 (972) 985-0000

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Please feel free to visit or call our team.

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Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $2,465 on each loan they originated in the third quarter of 2012, up from $2,152 per loan in the second quarter, as reported by the Mortgage Bankers Association (MBA). Seventy percent of the 311 companies that reported production data for the third quarter report were independent mortgage companies. “Both purchase volume and refinancing volume increased in the third quarter, resulting in higher net production profits among independent mortgage bankers,” said MBA Associate Vice President of Industry Analysis Marina Walsh. “Secondary marketing gains improved by 14 basis points over the second quarter. However, per loan expenses remained flat despite higher volumes.” Among the other key findings of MBA’s Quarterly Mortgage Bankers Performance Report are: n In basis points, the average production profit (net production income) was 120 basis points in the third quarter, compared to 107 basis points in the second quarter. n Average production volume was

We are pleased to announce that our Plano, TX branch has expanded.

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The Federal Housing Finance Agency (FHFA) has announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2013 will remain at existing levels. In most of the country, the loan limit will be $417,000 for one-unit properties. The loan limits are established under the terms of the Housing and Economic Recovery Act of 2008 (HERA), and are calculated each year. The law sets loan limits as a function of median home values in local areas. While some counties saw increases in home prices in 2012, no loan limit increases were evident after other HERA terms such as the statutory ceiling and floor were taken into account. The maximum conforming loan limits for one-unit properties, which generally have applied to loans originated since Oct. 1, 2011, are $417,000 in most locations, but are as high as $625,500 in certain high-cost areas in the contiguous United States. For loans originated prior to October 2011, the maximum loan limit was as high as $729,750 in the contiguous U.S. That higher “ceiling” limit was permitted under legislation that is not applicable to loans originated in 2013. In determining 2013 loan limits under the terms of HERA, FHFA did not change the baseline maximum conforming loan limit for the United States. The baseline limit, $417,000 for oneunit properties in the contiguous U.S., was left unchanged based on historical index values for FHFA’s monthly and quarterly House Price Index (HPI). HERA requires that the baseline loan limit be adjusted each year to reflect changes in the national average home price. After a period of declining home prices, however, HERA requires that prior price declines be fully offset before a loan limit increase can occur. During the recent housing bust, the average U.S. home price declined substantially. While estimates vary, the FHFA monthly and quarterly HPI declined by more than 19 percent through mid 2011. Although FHFA’s monthly and quarterly HPI both evidenced price increases over the latest year, the magnitude of those increases was relatively small— only in the range of 4.0-4.4 percent.

Because the latest year’s price increase did not fully offset the cumulative decline in prior years, the national loan limit is left unchanged pursuant to the terms of HERA. In making this determination, the FHFA HPI has been used. The same result would apply, however, if any of several other commonly-cited house price metrics were used. FHFA has evaluated a number of methodologies for tracking changes in the national average house price. Consistent with FHFA’s prior practice, in determining the 2013 HERA limits, FHFA used median home values estimated by the Federal Housing Administration (FHA) of the Department of Housing and Urban Development (HUD). FHA has calculated those median values for the purpose of determining its own lending limits. Once the FHA loan limits are announced, FHA will allow a 30-day appeals period for appellants to submit data suggesting a potentially higher median home value for a given area. If FHA changes its median price estimates as a result of any appeals, and if those changes would impact the FHFA conforming loan limits, FHFA may adjust the conforming loan limits and announce the resulting changes.


The President’s Corner: January 2013 hope that all of you had a great holiday season and are looking forward to making 2013 better than 2012. I feel like we have really accomplished a lot this year, and as I write this President’s Corner, I am really excited about this coming year, both for NAMB and for all of us as originators. As I look forward, I am reminded that in some circles of the mortgage arena, there is cautious optimism out there everywhere. We still have so many unanswered questions concerning the Consumer Financial Protection Bureau (CFPB), concerning the new Congress and Senate, and even what are rates going to do, what changes may be coming on FHA loan, and what about Fannie and Freddie? And the other items such as The Fiscal Cliff, the stock market, the bond market … whew! I sometimes wonder how we keep up with everything. Let me tell you … the answer is that the great people associated with NAMB—The Association of Mortgage Professionals are on their toes. They look at all of this each and every day and they help us as a Board of

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Directors by making the decisions that allow us to keep you informed. I am so proud of these people, because they make my job easier. In the past, NAMB presidents were paid a stipend to serve as president because they took so much time away from their jobs. As I have been president since Nov. 10, 2011, I have put countless hours into this job, and as the day moves on, I continually try to juggle the day in and day out assignments from NAMB, to running my company. I have closed more loans personally this year than I have in the last three years. I still talk with every customer and I make sure that I am treated exactly like my originators … no special favors. And the best part of it is talking to my customers. I like the interaction and time spent to see them excited about what I have helped them do. And the reason for that is that the people at my office that do their job. People ... such a funny word that tells us that we are a group of human beings who band together to exist in an existence that is considered collectively or in a general group, to exist for the good of all … and that really describes employees and NAMB members. To exist for the good of all! I sincerely feel that I cannot say enough about the people that work each and

every day for the success of NAMB. From my Board of Directors all the way across to the members that join to be part of their organization that represents what they do for a living. I thank all of you that are members and all of you that will become members and even those of you that aren’t members, because all of you are people of this association and you are what makes this such an incredible journey. Again … thank you! I hope that all of you will come to Washington, D.C. for the 2013 Annual Legislative & Regulatory Conference on March 10-12. We will be spending Monday being informed of what has transpired and what will be coming up on Capitol Hill in the next year. Speakers from the CFPB and other agencies will be on hand, updating you on their changes and other things that will be going on in the halls of Congress. There is going to be a large discussion on the qualified mortgage (QM), so come prepared to learn what could be in store for the industry. Please don’t wait to register because if you remember last year, we ran out of room at the host hotel. Please remember, you must be a member of NAMB in order to attend this Legislative Conference. If you would like to attend and are not a current member, log on to

JoinNAMB.com and join prior to registering for the event. Another item that is gaining some momentum is what we are doing in the membership program. We have initiated a program that will involve all of the account executives in the marketplace to go help get members. Now is the time to gather a great number of members to make sure that Washington understands that we are all together and are very important. Remember, NAMB represents and has always represented the mortgage professional since our inception in 1973. I am really looking forward to a great 2013 and moving forward with growing this association to what it was five years ago. Remember, if you are not a member, the question you need to ask yourself is WHY? We also are looking for people to get involved in committees to help us achieve these goals. We cannot do it without you, and you are important to us. Please become a member, and do it today. Sincerely,

Donald J. Frommeyer, CRMS, President NAMB—The Association of Mortgage Professionals

NAMB Rolls Success With First Annual NAMB National Conference in Vegas By Kay A. Cleland, CMC, CRMS

he inaugural NAMB National conference was held at the MGM Grand in Las Vegas on Dec. 8-10. What an amazing event that featured amazing national speakers and a jam-packed convention hall! This conference had to be, without question, one of the best that I have attended in a long time. Live seminars were held on Sunday and Monday, where attendees were able to experience dynamic speakers such as Greg Frost, Erik Janeczko, Ginger Bell, Rene Rodriguez and many more. As a licensed mortgage originator, this was perfect timing for the New

T

Year, as 2012 was wrapping up and 2013 was set to begin. The conference was filled with seminars that are helping me create a successful business plan for what is already shaping up to be a great 2013. I was able to choose the meetings that I wanted to attend that worked with my goals and schedule. The exhibitor booths on the exhibit hall floor of the MGM Grand ranged from wholesale lenders, software companies and technology providers, credit solutions, sales and marketing firms, referral sources, commercial mortgage providers, insurance providers, bonding firms and media outlets. All of these vendors were on hand at NAMB National to support the originators and give them more ideas to create more business. I would like to say thank you to the exhibitors on behalf

of NAMB, the mortgage originators and business owners. This conference brought together mortgage professionals from around the United States to network. This group is definitely at the top of the mortgage profession. I felt extremely fortunate to be in the presence of so many outstanding individuals who gave of their time and shared information to help me enhance my mortgage business. As a licensed mortgage originator and owner of my own company, it is imperative that I know what is going on legislatively and how it affects me, my customers and my company. NAMB helps me to know exactly what is coming legislatively and what I need to do as a mortgage professional in order to always be prepared. The legislative update, presented by NAMB

Government Affairs Committee Chair John H.P. Hudson, was informative and specific. Watch for NAMB’s Call to Actions and act. I am thankful for all of the volunteers at NAMB, as well as the association’s sponsors, vendors and partners that made this Conference one of the best! It is important that we all play a part in our mortgage industry. If you are not a member of your state and national association, please join today and help us to make a difference and support our industry. Kay A. Cleland, CMC, CRMS of KC Mortgage LLC in Castle Rock, Colo. is secretary of NAMB—The Association of Mortgage Professionals. She may be reached by phone at (720) 810-4917 or email kay@kcmortgagecolorado.com.


Scenes From NAMB National 2012 December 8-10 at the MGM Grand in Las Vegas The gang from Advantus on the exhibit hall floor of the MGM Grand in Las Vegas

James Wilkinson and Tate Kesner of Calyx were on hand to demonstrate their software solutions

Mike Grim and Don Clement Jr. from Credit Plus Inc.

Nick Lambrinatos, Ryan Alex, Kevin Neville and Dan Vermillion of LendingTree

The Icon Residential crew was on hand to assist attendees with their lending needs

NAMB President Don Frommeyer welcomes attendees to the first-ever NAMB National Conference

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NAMB President Don Frommeyer congratulates Nathan Pierce and Rick Bettencourt on receiving their Certified Residential Mortgage Specialist (CRMS) designation

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

Members of NAMB’s Board of Directors receive a check in the amount of $10,000 from the Originatorfest Golf Tournament

Justin Glass and Kristina Bennett from United Wholesale Mortgage (UWM)

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Ann Stockberger, Carl Markman, Joe Amoroso and Anthony Durso of Real Estate Mortgage Network (REMN)

The Maximum Acceleration crew was on hand to discuss their offerings

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Scenes From NAMB National 2012 December 8-10 at the MGM Grand in Las Vegas

NAMB Vice President John Councilman announces the nominees for the NAMB Professional of the Year Award

NAMB Government Affairs Committee Chair John H.P. Hudson was awarded the NAMB Volunteer of the Year Award

NAMB Government Affairs Chair John H.P. Stevens presents John Glen Stevens a check

NAMB Professional of the Year nominee John Glen Stevens addresses the crowd

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John Councilman (left) and Don Frommeyer (right) congratulate all the nominees for the NAMB Mortgage Professional of the Year Award

Scott St. John delivers his NAMB Professional of the Year nomination speech

Andy W. Harris delivers his nomination speech for NAMB Professional of the Year

Another packed hall listens in on one of the many educational sessions offered at NAMB National

George Burkley from Indiana, NAMB Past President Harry Dinham, NAMB President Don Frommeyer, NAMB Immediate Past President Jim Pair, NAMB Secretary Kay Cleland, Mike Anderson from Louisiana, NAMB Lobbyist Roy DeLoach and Franklin American Account Executive Ann Block enjoying the NAMB National Conference in Las Vegas

Mark Your Calendar

2013 NAMB Annual Legislative & Regulatory Conference Sunday-Tuesday, March 10-12 • Washington, D.C. The 2013 NAMB Legislative and Regulatory Conference will be held Saturday-Tuesday, March 1012 in Washington, D.C. This is a “must attend” event for all mortgage professionals. Last year, more than 10,000 Realtors attended NAR’s Lobby Day. This year, NAMB would love to get 1,000 mortgage professionals to D.C. to help NAMB lobby on Capital Hill. Join NAMB as the association rallies to fight for consumers, small business and mortgage professionals everywhere.

For more information, visit NAMB.org.


The Heart of the Profession: Don Fader Recognized as NAMB’s Mortgage Professional of the Year B Y

D A V I D

J .

C O S T E R

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as NAMB Mortgage Professional of the Year.

How would you describe the relationship between independent mortgage firms and wholesale or correspondent bankers? Don Fader: Our relationships with whole-

Are you concerned that new regulations will hurt the independent professional’s ability to compete with the large depository lenders? Don Fader: The one size fits all regulatory strategy threatens to eliminate the small professional channel. Now that should not be construed to mean that we are asking for a pass. You know we don’t have continued on page 24

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You are a passionate advocate for the independent mortgage professional channel. Why? Don Fader: Just yesterday, a lobbyist asked me how viable the independent mortgage

From your perspective, how important is the service you get from the banker? Don Fader: Service is absolutely critical to us because the borrower never sees the wholesaler … they never see the funder. Anything that goes wrong in that process is our responsibility because we are the professional in the transaction and we have selected that company. We have to stand behind our wholesaler and they have to stand behind us. Those relationships are a lot closer than they were 10 years ago. On both sides of the third-party origination channel—independent professionals and wholesalers—the firms that remain are those that are committed to the model. That makes for a great partnership.

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Tell us about your early days working for a savings and loan. Don Fader: I began in the mortgage industry in 1985 with a savings and loan. They had an opening for a loan officer. It was a unique and a substantive way to be a part of the community— building the community and serving the community. It just seemed to be a natural fit for my disposition. Unfortunately, after a few years, the S&L crisis came about and the S&L that I was working for was seized by the Office of Thrift Supervision (OTS). I stayed with them during part of the transition process, but soon left and joined First South Bank as vice president of their mortgage production. I stayed for three-and-a-half years, convinced that I learned everything that I needed to know about mortgage lending. Boy was I wrong! It was in 1996, when I left First South to open SMC Home Finance that my education truly began.

professional model is today. Here is how I answered him: “The small professional has one product to offer … a mortgage loan. I cannot finance your car. I cannot do a personal loan for you. I cannot finance your boat. Mortgages, that’s all I do, so I have to do a better job or I am out of business.” The unique thing about the mortgage industry is that the David’s of the industry you can compete on an equal footing with the Goliaths of the industry because we can provide a higher level of service. We can provide a greater amount of product options and can do it despite the apparent economies of scale disadvantage. In reality, the mortgage industry works with a reverse economy of scale situation. Non-depositories assume operating risk that large originators are unwilling to take on. We provide the services and facilities that make homeownership possible and we do not have executive or middle management. We don’t maintain an IT department or human resources department, so these cost savings allow us to operate a more effective and efficient loan platform.

salers or correspondent bankers, now more than ever, are relationships that are vetted, and are based on a large degree of trust. It’s no longer enough that you are licensed. You know you have to be able to prove yourself to your wholesaler or correspondent, and they have to have confidence that the product that you are originating is going to be a sellable product. It’s going to be well-originated. It’s going to be free from fraud. The correspondent or wholesaler is going to write a check for $250,000, for example, based on a file that you have put together. They must have the confidence that that file has been put together in such a way that protects their interest, as well as the borrowers.

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n the night of Dec. 9, 2012, Don Fader was not at the NAMB National meeting at the MGM Grand in Las Vegas with other successful members of what he affectionately calls “the varsity” of the independent mortgage professional channel. He was at home in Kinston, N.C., a town of just over 20,000 in the mostly rural eastern region of the state recovering from open heart surgery. Nevertheless on that special night “the varsity,” and in fact, all independent mortgage professionals, celebrated as Don was named NAMB Mortgage Professional of the Year for 2012. John Councilman, vice president of NAMB—The Association of Mortgage Professionals and the leader of the Award Selection Committee put it this way: “Don’s influence inside and outside of NAMB is just overwhelming. Very few people in the organization have not been touched in some way by Don. When his name was called as the Mortgage Professional of the Year, there were few dry eyes in the room. Don simply deserved to be Mortgage Professional of the Year.” When asked of his thoughts on honoring Don Fader, NAMB President Don Frommeyer noted, “Don Fader has been involved with NAMB for numerous years. He has always gotten involved having held several committee chair positions, board positions and state positions. He has also worked very hard on state problems in North Carolina. He is very unselfish in honoring his commitment to NAMB. I could not think of anyone else that has put forth his time and effort this year for both NAMB and North Carolina, other than Don Fader. As this title is the highest reward that we give to anyone, he has definitely earned this honor of NAMB Mortgage Professional of the Year.” I recently had the opportunity to speak with Don Fader about his career, the independent mortgage professional industry, and how it feels to be honored by his peers


2013: Wholesale Rising By Al Crisanty

A new year lies ahead as we close the book on 2012. We in the industry have weathered unimaginable change over the past four years. As a result, we have emerged smaller, but stronger. The year 2013 promises more change, and as before, the strong and wise shall thrive. Our firm believes that three trends will play out in the mortgage industry in 2013. These trends are: 1. HARP 3.0 will come to fruition, allowing millions more homeowners to benefit from refinancing and allowing the refinance-domination of the industry to continue for another year. 2. Preferred vendor relationships will become the norm in the industry as lenders seek to maintain quality standards throughout the lending process. 3. The wholesale channel will continue to reclaim market share lost in the aftermath of the mortgage meltdown and housing crash as quality origination will combine with maximized consumer choice and professional flexibility. Let’s take a look at this third trend in the next few paragraphs—the continued resurgence of the wholesale channel—and examine why this is simply a part of crafting the New Mortgage Industry (NMI). The NMI is simply the combined structural, operational and regulatory changes that are being put in place in the aftermath of the mortgage system collapse and housing bubble. One of the emerging themes of the NMI is the potential risk for lenders for all activities from first customer contact through their final mortgage payment. While this may be a dose of hyperbole, in reality, the unknowns regarding the final composition of the NMI make it imperative for lenders to have visibility and confidence in all aspects of the mortgage process or risk substantial regulatory and financial consequences. This potential risk requires that lenders follow three hard and fast rules:

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1. Know, approve and review all partner procedures 2. Maintain vigilant QC procedures 3. Maintain a zero-tolerance policy for violators of established guidelines or procedures While on one hand, we are all working to build the dreams of our customers, on the other hand, we are manufacturing a financial product for the markets. The NMI requires that mortgage products be 100 percent defect free. Wholesale lending—lending through mortgage brokers—can deliver on that requirement. Why? Wholesale lenders, including 360 Mortgage Group, have every incentive to be extremely careful in broker approval, generous in broker resource development, training and oversight, and unrelenting in standards adherence. Since this is our sole business, we have no other choice but to give investors what they are demanding. Brokers likewise depend on effective and efficient wholesalers to provide the products and service their customers demand. This produces a self-supporting cycle of quality throughout the wholesale lending channel. The working relationship between regional wholesale mortgage bankers and brokers is aided by proximity as well as intensity. There are numerous communication channels, but the key to the success of the relationship is the wholesale account executive. Not only is the wholesale account executive in close physical proximity to the brokers with whom they work with, but they play the important roles as teacher, intermediary and advocate. The wholesale account executive is the key differentiator that makes the wholesale channel the most reliable source of quality loans in the NMI. The year 2013 will continue to see significant and industry-altering changes. Yet the role of the broker, the account executive and the wholesale mortgage banker will continue to ascend as it is further proven that this team produces the highest quality loans. Al Crisanty is vice president of national wholesale production for 360 Mortgage Group and is responsible for overseeing regional sales managers as the company seeks to expand operations to all 50 states. Formerly the national wholesale director for Caliber Funding, Al was responsible for the development and expansion of Caliber’s wholesale production channel. Additionally, Al served as executive vice president of national production for American Home Mortgage, successfully transitioning the 500-member production team from Capital Commerce Mortgage Company. Al may be reached by phone at (916) 761-1624 or e-mail acrisanty@360mtg.com. SPONSORED EDITORIAL

the heart of the profession an inherent right to exist. Our value derives solely from our ability to provide borrowers with the services and products that they expect and deserve. Our size makes us nimble and our knowledge makes us invaluable. The channel deserves consideration in the regulatory scheme. What we hope is that the regulators are well-intentioned, and as we move forward, that they can understand the value of the small channel. For example, I live in a town of 20,000 may be 21,000 people. We have eight or nine banks, savings and loans and credit unions in this town. There is no resident mortgage loan officer in any of those institutions. Let’s just say a borrower walks into the lobby of a large money center bank here in my hometown. If he has a credit score of 800, plenty of W-2 income and a 20 percent downpayment, they will make arrangements for a mortgage loan officer to meet them there at their convenience. Now if you walk in with a 680 credit score, three percent downpayment, income from a number of jobs, and maybe he has had a couple of jobs over the last two years, they are going to draw a map on the back of the deposit slip to the bank in the next town over where there is a mortgage loan officer. Compare that to our approach. We are going to sit that customer down and we are going to walk them through the entire process. The banks are losing their commitment to consumers, especially in rural and small town areas. When 70 percent of the independent market disappeared, you lost a tremendous amount of capacity, especially for first-time homebuyers. Your small customer … your FHA customers … they are being underserved and in general access to credit is diminished. How important is it for a mortgage professional to be involved in their community? Don Fader: Being involved in the community is a critical issue. I have got an advantage. I am 57-years-old. I have lived in this town my entire life. I am doing loans today for the grandchildren of some of my early S&L customers … the third generation that I am serving. You know I cannot walk into a grocery store or into a mall without running into a customer. I constantly get bombarded with questions about where rates are right now, and is this a good time to refinance, or is this is a good time to buy. We are members of the community organizations and we actively participate. Our firm was awarded the small business of the year by the Chamber of Commerce 2010-2011. People who have known me and the business that we run are gave us that award. We are mighty proud of that. I got a little chocked up when I accepted the award because this is home. You just simply cannot take from a community. Some business models lose sight of the fact that, not only, are they originating loans, but they are also cre-

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Don Fader’s Accomplishments: n n n n n n n n n n

Served as president of the North Carolina Association of Mortgage Professionals (NCAMP) Named North Carolina Broker of the Year Served on NAMB’s Board of Directors Served as Interim Vice President of NAMB Chaired the NAMB Membership Committee and the Bylaws Committee President of NAMB+, the NAMB sister entity that finds new business partners for NAMB Named to the Mortgage Advisory Council in North Carolina by the State Banking Commissioner His firm, SMC Home Finance, was named Small Business of the Year in Kinston, N.C. SMC Home Finance was North Carolina’s first accredited lender Holds the Certified Residential Mortgage Specialist (CRMS) designation from NAMB

ating opportunities like financing the purchase of a home, a cash out refinance to help pay for college tuition or to enable the start a new business. We are literally changing lives for our friends and neighbors. What else would you like your fellow independent professionals to know? My wife retired from teaching school after 30 years. I was able to speak at her retirement party and I looked at her and said: “You may not have realized this, but I have always been envious of you and the work that you do. Every single day that you taught, and in some small, and sometimes even profound ways you touched the future.” I cannot think of anything more important than that. I am not particularly eloquent. I am not very smart, but I am passionate about the mortgage industry and the work that we do. I hope that at some point through our various state associations and NAMB’s leadership on the national front, we will be able to touch the future by finding the balance that I think is required on the regulatory front to protect borrowers, but still promote the dream of homeownership. In the meantime I am very, very proud to be associated with the professionals that I have met all across this country. There’s nothing else that I can achieve in this industry more important than this award. I am truly humbled and honored. David J. Coster is senior editor of National Mortgage Professional Magazine. He may be reached by phone at (919) 559-2171 or e-mail davidc@nmpmediacorp.com.


“I spent several months researching different companies and had all but given up when a friend, Jonny Fowler, asked me to take a look at ACHL This company doesn’t just feel like home, it IS home. Every time I need help I get it, and more! And with an incredible branch opportunity it all sums up into 3 words: Product, Service, and HOME!”

“ACHL’s has truly been a wonderful company to join. Response and turn times are great. The communication and access to anyone companywide all the way to the top is almost immediate. You are truly part of a family at ACHL.” -

“Perfect closing today! Attorney loved America’s Choice Home Loans. Everyone was as happy as could be!!!”

“I really like this organization. My only regret is that I didn’t find you sooner!”

Norman DuBois

Mark Silverberg

Jim Patterson

22 years in business Saco, Maine

25 years in business Bayville, New Jersey

9 years in business Houston, Texas

“An employee of a previous lender recommended ACHL to me. After talking to everyone at ACHL I knew it was the right fit. They did everything possible to answer my questions and make sure that I could open and run our branch our way.” -

“The best thing about ACHL is Underwriting and closing department turn times. I have never had either take more than 24 hours.”

“I joined America’s Choice Home loans because I felt like I was joining a family. They just jumped through hoops to get me on board and opened. They give me the tools needed to help me run and grow my business.”

“You know the old saying ‘Your company is only as good as your employees’ Jonny and his team have proven that statement to be true! I’ve had the pleasure to work with Jonny and his team for over 10 years. Once I had the opportunity to move and work with him and his team again I took it! It’s the right move!

Renee Ralls

David Velasquez

33 years in business Salem, Oregon

15 years in business Virginia Beach, Virginia

Dante Miller 13 years in business Corpus Christi, Texas

Brian Slodki 14 years in business Bartlett, Illinois

713-821-9753 or e-mail cfowler@achlonline.com to learn how you can have a better, more rewarding career.

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Give Cory Fowler, Sales Manager at America’s Choice Home Loans a call at

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Monique LaValette

23 years in business East Brunswick, New Jersey


Compliance and Marketing 2013: Safely Growing Your Business If you have ever done a significant amount of marketing, you’ve probably ran into or heard of others running into problems with compliance (hoops to jump through to keep your marketing compliant). The mortgage industry and your marketing are heavily regulated by the Federal Trade Commission (FTC) and now the Consumer Financial Protection Bureau (CFPB). These agencies are put in place to make sure that consumers are not being taken advantage of by lenders or their marketing and with all the guideline changes in the mortgage industry they are cracking down. Credit bureaus are paying hefty fines for allowing “pre-screened credit data” to fall into the wrong hands, regulations are tightening up, and as a mortgage professional, it’s up to you to keep abreast of all these changes, especially when it comes to your marketing. We all want to earn a good living and grow our business. Don’t do it at the expense of your future or that of your company’s. How can you stay current with all of these regulations?

2. Make sure you work with a reputable marketing firm. There are lots of “marketing people” out there who do not understand the guidelines. If they don’t know the rules, how can you expect them to be followed? 3. If you have a compliance department, use them. They have intimate knowledge of industry regulations and will make sure you don’t get into any hot water. 4. This is the most important of all … Talk with your marketing company about it. If you use an outside marketing firm, you must absolutely take the time to talk with them and find out how much they know about the guidelines for the specific type of marketing that you do or are planning on doing this year. Sure, it’s not their responsibility to make sure you follow the rules. But if you get into trouble they will lose you as a client so any good company will always put your best interest first. We are fresh into 2013 and it is shaping up to be bigger and better than 2012! With this will come more oversight by the CFPB and the FTC. Consider the type of marketing that you’ve planned for the year. Does it involve telephone numbers? Are those numbers scrubbed against the federal Do-Not-Call (DNC) List? Will you be using “pre-screened credit data?” Do you know the guidelines for using such data?

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By Jean LeBlanc

The reference to SWOT (Strength, Weakness, Opportunity, Threat) as an analysis tool is well-established in business lexicon and Economics 101 in the beginning lessons provided to any entrepreneur. But due to the unique nature of the mortgage industry, many branch managers have failed to use it to clarify their current position and pursue a growth-oriented strategy.

Strengths and weaknesses

1. You can read the guidelines on the agency Web sites.

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Applying SWOT to the Mortgage Industry

Understand the regulations that affect your marketing and do your best to follow them. They will sometimes lower your response rates so it’s important to consider this before you start marketing for the year. If you have already started your campaigns, have that conversation with your compliance officer and/or you marketing firm and make any necessary changes ASAP. Talk with your marketing firm to get useful insight into how you can keep your marketing profitable while following set guidelines and find out what’s working for others in your area. Lastly, just because these agencies are cracking down, it doesn’t mean that you cannot market! There are plenty of campaigns working great for all types of loans that are completely compliant … whether you are writing FHA, VA, conforming or reverse loans. There are even great campaigns for commercial mortgages! The mortgage industry is moving in the right direction again, and it’s important that you remain ahead of your competition. Plan your growth, find credible companies to work with, and make 2013 a year to remember! 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.

Sponsored Editorial

You should start by evaluating your strengths and weaknesses because these elements can be controlled and improved internally. First of all, your strengths go beyond your monthly revenue projections, the number of leads converted into clients and other bottom-line considerations. How may loan originators have you added to your staff this year? What is the average retention rate for your loan officers? Have you created an atmosphere conducive to loyalty and productivity? Since most mortgage companies offer the same loan products, you need to use SWOT to determine your differentiation from competitors. If it’s just something mundane like low rates, you need to do some creative thinking. Ask yourself why your previous clients selected you. Many mortgage organizations prosper by providing a unique product mix or serving a niche group. Some specialize in first-time homebuyers or jumbo clients, for example. Others work with lower income or lower FICO clients. By listing your strengths and weaknesses, you will position your company in the overall marketplace, defining how you are different, unique and better than your competition. You may even create a written positioning statement so you will know exactly how to pitch your prospects.

Opportunities and threats This second part of a SWOT analysis may prove critical to your ultimate survival. It involves a situational analysis of factors outside your office and how they impact your organization. For the mortgage industry, a key opportunity or threat comes from the Consumer Financial Protection Bureau (CFPB). What are their latest regulations and how nimble is your company in adapting to them? Competing mortgage organizations represent the most obvious threat. You should conduct the same analysis of your own company in the strength/weakness SWOT component for the opportunity/threat they may pose. Don’t be afraid to learn from your competitors, especially those with well-established reputations. Surviving for the long term in today’s mortgage industry means you must be doing something right. Referral sources represent a key component in the SWOT analysis. Real estate agents who serve as a source of clients for your competitors may significantly interfere with your marketing process. The use of advertising and public relations to generate publicity can help either you or your competitor. Many mortgage organizations are taking to the radio, and some even have their own shows! Try to capture the full dynamics of your local marketplace in the “OT” component of your SWOT evaluation.

Conclusion Take some time to create a SWOT diagram and work on it for at least a week to fully evaluate your marketplace situation. Evaluate product mix (jumbo, reverse, etc.), competitors, licensing requirements, referral sources and other elements unique to the mortgage industry such as turntime and the impact of the CFPB. Finally, create a positioning statement as a guide for future action. 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.


heard on the street

Your turn

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National Mortgage Professional continued from page 10 Magazine invites its readers to submit any information, events, passages, promotions, personal or professional pany in the position of chief operat- occurrences that seem appropriate ing officer, where she will be respon- and/or other pertinent data to the sible for overseeing the daily opera- attention of: tions and management of the entire OF EVENTS company, including system developHeard on the Street/Mortgage ment, client services, finance, sales Professionals to Watch column To view and marketing. Phone #: (516) 409-5555 n Wells Fargo Securities, the capital E-mail: or submit markets and investment banking Stearns Lending Inc. has announced newsroom@nmpmediacorp.com an entry, business of Wells Fargo & Company, the appointment of James Hecht to see page has announced that Greg Reiter has Note: Submissions sent via e-mail are the role of executive vice presidentjoined the firm as managing director preferred. The deadline for submissions is strategic development. and head of Residential Mortgage the 1st of the month prior to the target Capsilon has named David Hanafee Research. as the newest member of its execuissue. tive team as vice president of worldwide sales, where he is responsible for spearheading the company’s ! Invited direct and indirect sales efforts. You’re WFG Lender Services has named Jason Schmidt as its senior vice president of closing operations. GSF Mortgage has announced the ing l Coach a n o addition of Kurt Kempen as a loan i s s Profe tgage officer. for Mor rs to rel-e-vant Solutions has announced Origina Increase Your Loan Volume that Principal Consultant Elizabeth Green has been elected to the with the Mortgage Bankers Association’s Maximum Acceleration Coaches & MISMO Residential Governance Top Mortgage Industry Leaders! Committee, the committee responsible for administering the day-to-day standards development activities of MISMO—the Mortgage Industry Standards Maintenance Organization. Blueberry Systems LLC has Tuesday, January 29, 2013 Tuesday, February 19, 2013 announced the appointments of 12 pm - 1 pm ET 12 pm - 1 pm ET Kristi Watson as its vice president of Project Management Office (PMO) EARL McLAIN MARK MADSEN and Rick Schmitz as its vice president Maximum Acceleration Coach Mortgage & Real Estate Digital Marketing Specialist of technology. Mastering Communication: Social Media 2.0: Prudential Mortgage Capital Connecting Through to Maximum Results, Minimum Time Company has announced that David Human Behavior Durning, has been named successor to David Twardock, who intends to retire from his role as president. Tuesday, February 5, 2013 Tuesday, February 26, 2013 ServiceLink has announced that 12 pm - 1 pm ET 12 pm - 1 pm ET Kevin Coop has joined the company GREG FROST ERIK JANECZKO as executive vice president of enterCEO, Frost Mortgage Lending Group / CEO / Head Coach, Maximum Acceleration prise strategy. National Mortgage Industry Trainer Richard L. Borges II, MAI, SRA has Systems for Success: The Power of Ethical Influence been elected president of the The Five Keys to Peak Performance Appraisal Institute. Prospect Mortgage LLC has announced the appointment of Tuesday, February 12, 2013 Tuesday, March 5, 2013 Michael Williams, former president 12 pm - 1 pm ET 12 pm - 1 pm ET and CEO of Fannie Mae, as chairman of Prospect’s Board of Directors. STEPHANIE YORK MICHAEL J. MAHER Maximum Acceleration Coach / Certified Coach, REALTOR® / National Best-Selling Author Solera National Bank, a whollyCoach Training Alliance owned subsidiary of Solera National From Relationships to Referrals: Bancorp Inc., has announced the What to Do When You’re at Your The Top Three Keys to launch of Solera National Bank’s Limit: Four Secrets to Building Your Referral Development Residential Mortgage Division and Capacity & Volume Faster has hired Kathleen Stout as executive vice president of the new entity, and president of the Residential Mortgage Division. Brought to you by: See Our Complete Schedule & Register Online Now: LenderLive Network Inc. has announced that Erik Anderson has been promoted to vice president of sales for the company’s document Follow us @ Facebook.com/maccelcoach services division. Global DMS has announced that Email info@maccelcoach.com | Tel. (888) 819-7047 Patricia Rauch has joined the comHECHT

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Throwing a Lifesaver to Underwater Borrowers By Jonathan Foxx

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The Federal Housing Finance Agency (FHFA) released its September 2012 Refinance Report (Report) on Nov. 28, 2012.1 The Report provides some statistical information, most of which comes as no surprise to mortgage industry participants, while there are some tidbits of data that seem to demonstrate the impact of the Home Affordable Refinance Program, known as HARP, on the GSEs (viz., Fannie Mae and Freddie Mac). The end date for HARP was extended until Dec. 31, 2013 for loans originally sold to the GSEs on or before May 31, 2009. HARP was established in 2009 to assist homeowners who are unable to access refinance due to a decline in their home value. The program was originally designed to provide these borrowers with an opportunity to refinance by permitting the transfer of existing mortgage insurance to their newly refinanced loan, or by allowing those without mortgage insurance on their previous loan to refinance without obtaining new coverage. The premises for HARP are simply stated, as follows: 1) Since the GSEs are already responsible for certain high LTV loans; and 2) Default risk is lowered by allowing a refinance of these high LTV loans; therefore, 3) HARP loans refinancing high LTV loans at lower rates reduce default risk. One of my concerns with HARP, or as it is referred to now HARP 2.0, is it has failed homeowners because it just is not reaching enough qualified borrowers and many lenders take too long to issue approvals. Another concern is the differentially higher interest rate that some lenders charge underwater borrowers versus the current market rate. A remedy to borrower eligibility would be to have the government expand its guidelines to include nonagency lenders and by removing certain features of the 2009 origination qualifier. Also, low credit scores remain an obstacle by preventing underwater homeowners from taking full advantage of the cur-

rent HARP guidelines with respect to their eligibility for refinance transactions. HARP has obviously triggered a wave of refinance activity, just as expected. In speaking with some of our clients that are very much involved in HARP refinances, it seems that about 50 percent-75 percent of their refinance business may be coming from homeowners who have LTVs above 125 percent. Because the 125 percent ceiling on LTV was removed, some lenders are actually refinancing LTVs of 155 percent. In the following discussion, I will offer a brief review of HARP’s most recent survey, followed by a discussion about the effect of HARP 2.0 on underwater borrowers.

Overview n More than 90,000 homeowners refinanced their mortgage in September 2012 through HARP with more than 709,000 loans refinanced since the beginning of CY2012. n Since the program’s inception in 2009, the GSEs have financed more than 1.7 million loans through HARP. n In September 2012, half of the loans refinanced through HARP had LTV of greater than 105% and one-fourth had LTVs greater than 125 percent. n In September 2012, 19 percent of HARP refinances for underwater borrowers were for shorter-term 15-year and 20-year mortgages. n HARP refinances in September 2012 represented 45 percent of total refinances in states hard hit by the housing downturn - Nevada, Arizona, Florida and Georgia - compared with 21 percent of total refinances nationwide. n In September 2012, HARP refinances for borrowers with LTV ratios greater than 105 percent accounted for more than 70 percent of HARP volume in Nevada, Arizona and Florida and more than 60 percent of the HARP refinances in California.

Characteristics of HARP–Recent history HARP refinance, quarterly volume HARP volume continued to represent a

material portion of total refinance volume in 2012 as HARP enhancements took effect in the first half of CY2012. HARP volume represented 24% of total refinance volume in the third quarter of 2012. Monthly HARP volume by LTV The number of completed HARP refinances reported for deeply underwater borrowers continued to represent a significant portion of total HARP volume. In September 2012, 26 percent of the loans refinanced through HARP were at a LTV greater than 125 percent. Percentage of HARP refinances by LTV Borrowers in September 2012, with LTVs greater than 105 percent, continued to account for half the volume of HARP loans. Mortgage terms, LTVs greater than 105 percent In September 2012, 19 percent of HARP refinances for underwater borrowers were for shorter-term 15-year and 20year mortgages. Total HARP as percentage of total refinances HARP continued to account for a substantial portion of total refinance volume in certain states. In September 2012, HARP refinances represented 45

percent or more of total refinances in Nevada, Arizona, Florida and Georgia, compared to 21 percent of total refinances nationwide. HARP LTV >105 percent percentage of total HARP Underwater borrowers accounted for a large portion of HARP refinances in a number of states. In Nevada, Arizona and Florida, underwater borrowers represented over 70 percent of HARP volume, and in California they represented more than 60 percent of HARP refinances. Timeline for interest rate changes I would like to set forth a timeline outlining certain highlights in interest rate changes since 2008. This information is worth noting, when considering the rates and fees charged to underwater borrowers by lenders and servicers. It helps to further contextualize the rate changes and the availability of a market rate for HARP refinance transactions. 2008 n 6.48 percent: Highest rate reached in 2008 for a 30-year mortgage. n 6.04 percent: GSEs placed into conservatorship on 09/06/08. n 5.29 percent: Fed announces MBS purchase program on 11/25/08. continued on page 30


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No Changes to 2013 Conventional Loan Limits By Melanie A. Feliciano Esq.

The Federal Housing Finance Agency (FHFA) has announced that the 2013 base and “high-cost” or “jumbo” conforming loan limits for first-lien and second-lien loans will remain unchanged from the maximum conforming loan limits for 2012. Note that loan limits apply to the original loan amount of the mortgage loan, not to its balance at the time of purchase by Fannie Mae, and the loan origination date is the date of the note. For more detailed information about conventional conforming loan limits for 2013, please refer to Fannie Mae’s Lender Letter LL-2012-11 (https://www.fanniemae.com/content/announcement/ll1211.pdf) and Fannie Mae’s Web site here (https://www.fanniemae.com/singlefamily/loan-limits).

Effect on certain high-cost tests Any time there is a change in the conforming loan limits, the following state high-cost tests can be impacted: California, the District of Columbia, Georgia, Indiana, Maine, New Mexico, New York, North Carolina, Tennessee, Texas and South Carolina. Specifically, the rules governing the applicability of these states’ high-cost tests are determined in part by reference to the then-current conforming loan limits. Note that for both North Carolina and Tennessee, the Fannie Mae conforming loan limits will have no impact on their respective high costs tests. As with the year 2012, the applicable loan limits in 2013 for one-unit properties in the states and counties listed below will remain as follows: California:

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$417,000 (all counties except as follows) $463,450: Alpine $474,950: El Dorado, Placer, Sacramento, Yolo $477,250: Nevada $483,000: Monterey $520,950: Sonoma $529,000: Mono $546,250: San Diego $561,200: San Luis Obispo $592,250: Napa $598,000: Ventura $625,500: Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz

Dist. of Columbia1:

$625,500

Georgia:

$417,000 (all counties except Greene County—conforming jumbo loan limit is $515,200)

Indiana: Maine:

$417,000 (all counties) $417,000 (all counties)

New Mexico:

$417,000 (all counties)

New York:

$417,000 (all counties except as follows) $625,500: Bronx, Kings, Nassau, New York, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester

South Carolina:

$417,000 (all counties)

Texas2:

$417,000 (all counties)

Melanie A. Feliciano Esq. is DocMagic Inc.’s chief legal officer. She may be reached by phone at (800) 649-1362 or e-mail melanie@docmagic.com.

Footnotes 1—The District of Columbia Home Loan Protection Act of 2002 (the DCHLPA) applies to a loan if, among other things, the principal amount of the loan does not exceed the Fannie Mae conforming limit for a comparably sized dwelling. 2—The Texas high-cost home law applies to a loan if, among other things, the principal amount of the loan does not exceed onehalf of the Fannie Mae conforming loan limit for a single family, two, three- or four-unit dwelling.

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continued from page 28

2009 n 5.00 percent: Obama Administration announces Making Home Affordable announcement (02/20/09). n 5.42 percent: Treasury rates sharply rose and reached a 2009 high on a better than expected June unemployment report. n 4.93 percent: Treasury rates fell sharply after Dubai sought to delay sovereign debt payments. 2010 n 4.97 percent: Treasury Rates rose on optimism of a recovering U.S. economy and a temporary lull in news of a developing debt crisis in Europe. n 4.17 percent: 30-year mortgage rates reached percentage in early November, marking the lowest level observed since Freddie Mac began tracking rates in 1971. 2011 n 4.51 percent: Treasury rates fell amid ongoing concerns of a growing debt crisis in Europe. 2012 n 3.95 percent: Refinance volume surged in March and dipped in April, as GSE seller/servicers completed refinancings ahead of a 10 basis point guarantee fee increase that took effect April 1, 2012, mandated by the Temporary Payroll Tax Cut Continuation Act of 2011. n 3.47 percent: 30-year mortgage rates reached new historic lows in September 2012. Refinance volume rose in September as 30-year mortgage rates reached new record lows.

The borrower: Trapped or liberated? There has been some controversy involving HARP 2.0. One concern involves the servicers’ right to set the fees on refinances, such fees being a highly profitable revenue source for servicers. The total revenue has been estimated to be in excess of $12 billion for CY2012. The borrowers who refinance through HARP may save as much as $5 billion in the same timeframe. Since HARP enables borrowers to refinance with existing lenders, there is an opportunity for consumer financial abuse when a lender charges such “captive customers” an above-market interest rate. And, surveys are showing that borrowers who use their existing lenders constitute nearly 75 percent of HARP refinance transactions. The result, from the consumer’s perspective, is that existing lenders and the servicers are in a position to charge considerably higher fees. This takes on an even more potentially pernicious aspect when certain lenders, through their servicing platforms, only permit underwater borrowers to refinance above a specific loan-to-value ratio. There have

been some studies of the increased premium. I have heard a range of 0.25 percent to 0.75 percent premium that is being charged to underwater borrowers. The Obama Administration had wanted the FHFA to use HARP as a means to stem the avalanche of underwater borrowers. These are Fannie and Freddie loans. Yet the FHFA has yet to adequately police the higher rates charged on HARP transactions; indeed, it would seem that the FHFA does not even acknowledge this condition exists. The underwater borrower is still getting a reduced rate through HARP. But it may not be the market rate, and that is the crux of the issue. That difference between the market rate and the rate given to the underwater borrower is all new revenue to lenders. Claiming an increased risk requires an increased rate is not a defensible view, where HARP actually provides lenders with a waiver of liability—which, surely, may be seen as a government subsidy – with respect to representation and warranty claims. Jonathan Foxx, former chief compliance officer for two of the country’s top publicly-traded 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 jfoxx@lenderscompliancegroup.com.

Footnote 1-Refinance Report September 2012, Federal Housing Finance Agency, 11/28/12. This document may be downloaded from my firm’s Library at www.LendersComplianceGroup.com or from the Federal Housing Finance Agency’s Web site.


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$450 million per company in the third quarter, up from $371 million per company in the second quarter. The average volume by count per company rose to 2,010 loans in the third quarter, from 1,700 in the second quarter. The refinancing share of total originations, by dollar volume, was 57 percent in the third quarter, up from 52 percent in the second quarter. For the mortgage industry as whole, MBA estimates the refinancing share at 73 percent in the third quarter of 2012, up from 67 percent in the second quarter. Measured in basis points, secondary marketing income increased to 271 basis points in the third quarter, compared to 257 basis points in the second quarter. Total loan production expenses— commissions, compensation, occupancy and equipment, and other production expenses and corporate allocations—increased slightly to $5,163 per loan in the third quarter, from $5,128 in the second quarter. Personnel expenses averaged $3,320 per loan in the third quarter, from $3,246 per loan in the second quarter. The ‘net cost to originate’ was $3,353 in the third quarter, from $3,224 per loan in the second quarter. The ‘net cost to originate’ includes all production operating expenses and commissions minus all fee income, but excludes secondary marketing gains, capitalized servicing, servicing released premiums and warehouse interest spread. Productivity improved to 3.9 loans originated per production employee per month in the third quarter, from 3.6 in the second quarter. Ninety-seven percent of the firms in the study posted pre-tax net financial profits in the third quarter of 2012, compared to 95 percent in the second quarter.

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Nearly 20 percent of recent movers identified “convenience to job” as the most important factor in their choice of neighborhood in 2011, according to the 2011 American Housing Survey (AHS), the definitive source of information on the quality of housing in the United States. For the first time ever, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development have made survey results available on the Census Bureau’s American FactFinder data access tool. A wide range of specific topics is covered in the survey, including plumbing and source of water and sewage dispos-

The U.S. Department of Housing & Urban Development (HUD) has announced an agreement with Bank of America (BOA) to settle a claim that the mortgage lender refused to provide financing to a lesbian couple. The agreement is the first enforcement action taken against a lender involving HUD’s recent rule ensuring that the Department’s core housing programs be open to all eligible persons, regard-

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

HUD and Census Bureau Expand Access to Include Housing Info

al; housing problems; householder’s satisfaction with home and neighborhood; value, purchase price and type of mortgage; recent home improvement activity and costs; safety features and potential health hazards; features in home providing accessibility to people with disabilities; and socio-economic characteristics of the householder. Statistics are nationallevel only and are provided for apartments, single-family homes, manufactured housing, new construction and vacant housing units.

Bank of America and HUD Reach Agreement on LGBT Discrimination Claim

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Topics new to the housing survey include safety features, potential health hazards and features providing accessibility to people with disabilities. Among the accessibility features in occupied homes were floors with no steps between rooms (64 percent of homes have this feature), entry level bathrooms (48 percent), entry level bedrooms (36 percent) and handles or levers on sinks (28 percent). The least common accessibility features were elevators (found in 0.2 percent of homes), ramps (one percent), handrails or grab bars (excluding steps) in non-bathroom areas (two percent), raised toilets (seven percent) and built-in shower seats (eight percent).


nmp news flash

Bonded With NAMB

All Bonds Are Not Created Equal By Mason Grashot, CPA

There are many factors that determine how risky a bond is perceived to be. Some factors are directly related to the licensee’s individual ability to meet its professional obligations, while some are related to the overall economic climate for an industry. But other factors, some of which are discussed below, can produce a very state-specific impact on the perceived risk for bonds. n The language of the state’s bond form: The coverages provided to states through bond forms can vary tremendously—in much the same way that no two insurance companies’ policies are the exact same. A state’s mortgage license bond can be quite different from that same state’s motor vehicle dealer license bond. One state’s mortgage license bond can be quite different from another state’s mortgage license bond. As a contract, the bond form’s language stipulates what it actually does. Those contract terms are spelled out in detail in the bond form. Bond language often references legislation that carries the coverage terms as well as regulations (directives or bulletins promulgated by a regulator to clarify or enforce the legislation). Some surety coverage is very specific in protecting the state only from fines and fees levied by the regulator that are not otherwise able to be recovered directly from the licensee (and bond principal). Other coverage can be much broader to include unpaid state taxes or damages suffered by the licensee’s customers.

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32 n The bond’s claims period: Bonds cover actions that occur during the bond term. Accordingly, the surety carrier is not absolved of its responsibility for the bond immediately upon the bond’s termination. The regulator (obligee) can still file a claim under the bond during the allowable window of time following the occurrence of an event or termination of the bond. That allowable claims period can be stated specifically in the bond form, in the legislation or regulations to which the bond form refers, or not stated at all. In that situation, that individual state’s statute of limitations precedents would apply. Accordingly, that claims period can be as short as one year or as long as seven. n The aggression of the state regulator: In spite of what language is in the bond form, referring legislation, or applicable regulations, it is still up to the regulator to file claims under the bond. Some states have regulators who are fairly passive or accommodating in their oversight of the licensees. They may give multiple warnings or use the bond as a true last line of defense. Some states’ regulators are simply too busy with other issues as government resources get stretched thin and priorities are determined. But other states may utilize their regulatory authority as a revenue source by aggressively fining and feeing its licensees for violations. They may also be quick to pull the trigger on filing a claim under the bond rather than exhausting all of their efforts otherwise. 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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less of sexual orientation, gender identity, or marital status. HUD’s rule, Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity prohibits lenders from basing eligibility determinations for mortgage loans insured by the Federal Housing Administration (FHA) on actual or perceived sexual orientation, gender identity or marital status. HUD’s Equal Access rule applies to all housing programs administered by the Department. “This agreement demonstrates that HUD will vigorously enforce its Equal Access rule and pursue lenders that discriminate on the basis of sexual orientation, gender identity or marital status,” said Helen Kanovsky, HUD’s General Counsel. “By the same token, BOA should be commended for stepping up and taking immediate corrective action after HUD notified BOA of the violation.” HUD claimed that BOA denied a loan to a Florida couple seeking to obtain an FHAinsured mortgage because of their sexual orientation and marital status. Because one partner was not employed, the applicant enlisted her partner’s mother as a coapplicant on the loan. The couple worked with BOA for several weeks to provide all of the necessary loan application documents and the couple was assured by BOA that they were likely to receive a mortgage. One business day prior to closing, BOA denied the mortgage because it did not consider the loan applicant and the co-applicant directly related because the applicant and her partner were not married. As a result of BOA’s actions, the couple was not able to close on the loan. “The HUD Equal Access Rule means just what it says: one’s sexual orientation, gender identity or marital status is not a legitimate basis on which to deny a mortgage,” said John Trasviña, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Members of the housing industry should take note of this settlement agreement. HUD will enforce its regulations to make sure its programs are truly open to all qualified families.” Under the terms of the agreement, BOA agrees will pay HUD $7,500 and to notify its residential mortgage loan originators, processors and underwriters of its Settlement Agreement with HUD. In addition, Bank of America will remind its employees that they are prohibited from discriminating against FHA-loan applicants on the basis of sexual orientation, gender identity or marital status. BOA will also update its fair lending training program to include information on HUD’s rule.

GSEs Complete 134,000 Foreclosure Prevention Actions in Q3

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Fannie Mae and Freddie Mac completed more than 134,000 foreclosure prevention actions in the

third quarter of 2012, bringing the total foreclosure prevention actions to more than 2.5 million since the start of conservatorship in 2008 with nearly 1.3 million of those actions being permanent loan modifications. These actions, which have helped more than 2.1 million borrowers stay in their homes, are detailed in the Federal Housing Finance Agency’s third quarter 2012 Foreclosure Prevention Report, also known as the Federal Property Manager’s Report. The quarterly 2012 Foreclosure Prevention Report has information on state delinquencies and an updated, interactive Borrower Assistance Map for Fannie Mae and Freddie Mac mortgages, with information on delinquencies, foreclosure prevention activities and real estate-owned (REO) properties. Also noted in the report: n Year-to-date, Fannie Mae and Freddie Mac have completed nearly 411,000 foreclosure prevention actions. n Nearly 38,000 short sales and deedsin-lieu were completed in the third quarter, up four percent compared with the second quarter. n Forty-five percent of troubled borrowers who received loan modifications in the third quarter had their monthly payments reduced by more than 30 percent. n More than one-third of loan modifications completed in the third quarter included principal forbearance. n The number of the GSEs’ delinquent borrowers has declined nine percent since the beginning of 2012.

Foreclosure Rate in 100 Largest U.S. Metro Areas Nears All-Time Benchmark The ForeclosureResponse.org team—the Local Initiatives Support Corporation (LISC), Urban Institute and the Center for Housing Policy—has released the newest data on and analysis of seriously delinquent mortgages for all 366 U.S. metro areas from September 2012, finding that the foreclosure rate for the 100 largest U.S. metro areas stands at six percent, barely budging from the last two quarters’ all-time high of 6.1 percent. The foreclosure rate has been steadily growing since we began tracking it in March 2009. However, the rate of mortgages delinquent by 90 or more days—mortgages on a clear path toward foreclosure—fell to 3.5 percent, down from a high of 5.5 percent in December 2009. Fewer distressed mortgages means we can expect fewer foreclosure starts in future. Still, until the number of foreclosure exits catches up to the number continued on page 37


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Charles Wagner, Senior Vice President of the Lending Division CBC National Bank BY DAVID J. COSTER

n this month’s issue of National Mortgage Professional Magazine, we had a chance to speak with Charles Wagner, senior vice president of the lending division of CBC National Bank, a rising wholesale and retail lender based in suburban Atlanta, Ga. Trained as an underwriter, Charles brings a unique perspective to his leadership position. Recently, we spoke about his career and his thoughts on the industry today.

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Tell me how you came to have a career in the mortgage industry? I graduated from the University of Georgia in 1992, and my first job out of college was with Merrill Lynch. It was in mutual fund accounting in Jacksonville, Fla. Actually, it was pretty boring to me–reconciling trades and shares of mutual funds. After about a year, I was really kind of disenchanted. Merrill Lynch Credit Corporation was right next door to that operation. I saw a posting for an underwriter, who they were willing to train. Frankly, probably the best thing that ever happened to me was getting into that field. The first thing they do with underwriters is put them through probably a four- or five-week training course. That first four or five weeks of underwriter training has stuck with me my whole career. It was the prudence by which we evaluated our business and the thought process behind it–when to make a business decision, when not to make a business decision. How did your career develop? It was when I got to HomeBanc that I really figured out that I wanted to be in this industry for the long-term. HomeBanc took care of its customers and employees rather well. I felt the camaraderie of the large group of people in that organization. I was probably at HomeBanc for four-plus years. There was a gentleman out there that I had become very good friends with; and his wife was my first train-

and then to be $100 million-plus a month, as more and more of our competitors got out of the business.

“… you have to surround yourself with good people that have the same character that you have.” —Charles Wagner

er at Merrill Lynch–a guy named Steve Rollins. We had talked for four, five, six, seven years about going out on our own, doing some partnership. When it was right for me, it wasn’t right for him. When it was right for him, it wasn’t right for me. Well in 2003, we both picked up the phone and called each other about the same time and said, “Are you ready to go do something?” So we parted with our company and did a joint venture partnership with a company out of New Jersey called American Mortgage Express Corporation, and from 20032007, we basically had our own business in Atlanta, a wholesale business focused on the southeast. How did you come to CBC National Bank? After the mortgage meltdown is when I realized I wanted to be a leader in this industry as well. We got in touch with the CEO here at CBC National

Bank. Back then, it was known as First National Bank of Nassau County. This bank used to be in the mortgage banking business, but they got out of the business in 2004. The bank realized it needed non-interest income. The CEO sat down with us in 2007 in the credit meltdown and said, “I want to get back in the mortgage banking business.” I said, “You know, we’re in the middle of a credit crisis.” He said, “I know, but over my whole career, I was taught that when something’s on fire and everybody’s running away from the fire, if you walk into the fire carefully, you’ll have an opportunity to do good business and make good money. I like you, and I like Steve.” So in late 2007, we started a small wholesale business with a business plan of maxing out at $25 million a month. Well, the success rate of that business and the service that we gave, really grew quickly to be a $40 to $50 million a month wholesale business,

What are the key strengths that CBC National Bank has that allowed it to thrive during and after the credit crisis? One is diversification. Too much of a good thing isn’t a good thing. I also learned that you have to surround yourself with good people that have the same character that you have. Don’t budge on character issues. If it’s in the gray area, it’s black and white for me. So going to the gray is not an option in our business. We’re probably a little bit more conservative than average mortgage bankers. I want to have a little bit lower highs. So we want to focus on purchase business. We want to focus on things that are going to be here in the long-term. Therefore, we’ll have higher lows as this cycle moves in and out. How has technology played a role in expanding your business? Let’s look at it a couple different ways. The first is … how has it allowed us to grow our business outside of the state of Georgia? The fact is that we have the ability to market and use technology, make people feel like they’re part of the business, even when they’re not in the state of Georgia. It’s really allowed us to do business all across the nation. Next, you go to an operational impact. In 2010, we implemented a new system–the Avista Technology System, which we co-branded CBC Connex. It’s a Web-based system that allows us operationally to do business from anywhere and allows our branches to be connected without having to a have a database or server in their office (www.cbconnex.com). What keeps you up at night when you think about the mortgage industry? I am really worried about the consumer long-term. I hate to get into philosophical conversations. But it’s really the financial morality of America, which is our consumers are


“We don’t really think that doing business for the sake of doing business is optimal. So here at CBC, we’ve built a business plan that’s sustainable for the long run.”

USA Cares Mortgage Heroes Norman Zolkos of Menlo Park Funding By Jennifer Robinson

willing to give up easier and easier and not live up to the obligations to which they commit. It really makes me worry about long-term viability of banking and mortgage banking in our country. The second is obviously the regulatory burden. It’s definitely adding to the cost of doing business. It is adding to the cost the consumer pays. I worry about where’s that line … where’s the balance? Has the pendulum finally swung too much? I think the audits and exams are great. My key staff learns from every one of them. But the fact is that each one of those represents one to two weeks of taking your eye off the ball.

ing while I’ve been running the mortgage bank for CBC.

What else would you like our readers to know? We want to take care of the customer; we want to manage risk. We want to be very profitable. We don’t really think that doing business for the sake of doing business is optimal. So here at CBC, we’ve built a business plan that’s sustainable for the long run. We’re five-plus years into this business. I think back to when we capped it out at $25 million, and now we’re somewhere between $150 and $180 million.

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David J. Coster is senior editor of National Mortgage Professional Magazine. He may be reached by phone at (919) 559-2171 or e-mail davidc@nmpmediacorp.com.

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

Who have some of your mentors been? There are two people who have been my mentors over time. One is my dad. As I grew up, he instilled a hard work ethic and character. He was a banker, he instilled financial disciplines. And today, it’s the CEO of our bank, Mike Sanchez. He’s that banker who empowers you to make good business decisions and supports you after you make them. He has really done a lot of investment in teaching me about the bank–how to make sure our mortgage bank fits inside the bank and how to grow our business. Frankly, I’ve learned more in the past five years than I have the previous 10 years of my career. At the end of the day, I got a PhD in bank-

Be a Mortgage Hero! This recognition is free to Certified Military Housing Specialists. Take the FREE Certified Military Housing Specialist course offered online by USA Cares and tell us how you are “Helping those who defend our homes, preserve their own.” Jennifer Yopp Robinson is the vice president of programs and services at USA Cares, where she has worked since 2007. She may be reached by phone at (800) 773-0387, ext. 115 or e-mail jrobinson@usacares.org.

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What are your thoughts on where the mortgage market is headed? We are absolutely going to move to a purchase market. Over the last year or two, we’ve seen small strides toward that. More importantly, the question we have to answer is, “Where is the new talent coming in our industry?” We’ve gotten such a black eye over the last few years. Will there be new talent in our industry to handle this business? Over the next five to 10 years, I think it’s going to be a purchaseminded business that’s going to need to be done more in local or regional Tell us about your relationship with businesses I think you’ve got to be able to manage your business better the bank? This bank was a construction and both from a risk management and development lender pre-2007. For all from an execution standpoint. I think intents and purposes, this bank prob- the big banks are going to turn off ably should have failed at one point the consumer. The smaller more based on the non-performing assets regional banks or mortgage banks it built up. But over the last five are going to actually step in and fill years, our earnings and taking a that void. I think the customer is small amount of TARP has saved this going to be willing to pay a slightly bank. So that accomplishment of higher rate to get a much better level actually not just being just a mort- of service than they do today with gage banker, but buying into the the big banks. I continue to hear horbank as a partner and realizing it’s ror stories about how customers are who we are, has really made a differ- treated. We think that that’s a big ence. We like to say there’s going to deal. If you move to a purchase be a book written about CBC as one transaction that has a deadline, I just of the few banks that really should don’t know how the big players are have failed, but made it. I think we’re going to be able to adjust to that and make that happen. still writing the story.

Menlo Park, N.J. is a good source of inspiration. It’s the home of inventor Thomas Edison’s Laboratory and is where he invented the light bulb. With hard work, innovation and dedication, Edison made lives easier. Menlo Park Funding uses the same philosophy, to make homeowner’s lives “easier” financially and that includes homeowners who happen to be a part of the U.S. Armed Forces. It’s also the belief followed by this month’s mortgage hero Norman Zolkos of Menlo Park Funding. He recently completed the USA Cares’ “Certified Military Housing Specialist Course” and is using his new training to make the lives of our veterans a little easier. Norman has literally given hundreds of hours of his time to helping military borrowers get lower-rate VA mortgages and eliminate PMI, this saving a borrower hundreds of dollars. This year, Norman assisted more than 40 veterans, helping each of them to save an average of $240 a month. That savings is meaningful to veterans and their families. “Originating a VA mortgage may mean more paperwork, more training and spending more time than loan originators are accustomed to,” said Norman. “However, knowing we are giving a service to our nation’s military is a personal reward. I encourage all originators to become a “Military Housing Specialist” through USA Cares so they can give back something to the military that defend our freedom on a daily basis.” Norman Zolkos One veteran who inspired Norman was a recentlywounded warrior of the war in Iraq. Norman helped to close his mortgage in nine days by galvanizing the Department of Veterans Affairs and his team at Menlo Park Funding. “He had sustained multiple injuries while serving in Afghanistan, and had endured several surgeries,” said Norman. “I was amazed and inspired by his great spirits, even though he suffered a horrific injury and will have pain for the rest of his life.” If you want to connect with Norman about how you can make the lives of our worthy veterans a little easier, please e-mail him at nzolkos@mpfunding.com. USA Cares salutes Norman Zolkos for giving our military, “A Hand Up!”


Open Mortgage Celebrates 10 Years With Special Programs for First-Time Homebuyers

Secure Settlements Announces Free Consumer and Realtor Access to Its Closing Agent Database

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Secure Settlements Inc. has announced that it has will launch a Consumer and Realtor database access program beginning in January 2013. The program, called “Know Before You Close” will allow consumers free access to search the SSI nationwide closing agent database (NCAD) to make better decisions about who attends the closing on their behalf. It will also allow real estate agents to check out an agent’s risk rating before a referral is made, thereby helping to protect them from the reputational fallout accompanying fraud or other harm to a homeowner at the closing table. Secure Settlements offers first to market solutions for closing table risk, establishes opportunities for closing professionals to gain new business, and offers banks and consumers a searchable database of shared information to help them make better choices about the people who handle their mortgage funds and important loan documents. For closing agents (attorneys, escrow and title agents, notaries and independent closers), a 10 minute application and 30 minute vetting process gets them listed in the SSI searchable database used by hundreds of banks and mortgage lenders and (beginning January 2013) tens of thousands of consumers to research the risk status of their transaction partners. By adding their name and information to the more than 45,000 strong database agents can establish their commitment to quality control, independent risk management and transactional transparency. Vetted agents also are eligible for discounted E&O/PLI insurance and reduced cost continuing education programs through SSI strategic relationships. For banks, SSI provides an outsourced solution to the requirement to manage third party service provider risk. SSI has the technology, the expertise, the staff and the documentation to assist you in implementing an independent, low cost, common sense approach to operational risk management. Its proprietary process has been in development for 10 years in collaboration with key industry managers and former state and federal regulators. “I have been a consistent advocate for greater protections for consumers from

closing table fraud for more than 10 years,” said SSI President and CEO Andrew Liput.” With the recent adoption of greater regulatory requirements and federal laws pressuring participants in the mortgage process to manage closing table risk with greater diligence and independence, it is not enough to simply make data available to insiders. Homebuyers and realtors need access as well. This will help them make better choices in the process and in doing so help to deter and reduce mortgage fraud, which the government expects to top $13 billion in 2012.”

Veros Adds Realtors Valuation Model to its Suite of AVM Products Veros Real Estate Solutions h a s announced that it has added the Realtors Valuation Model (RVM) to its platform of solutions for the mortgage and investor market. RVM is the product of Realtors Property Resource LLC (RPR), a whollyowned subsidiary of the National Association of Realtors (NAR), and Lender Processing Services Inc. (LPS). “The AVM marketplace continues to introduce high-performance models,” said David Rasmussen, Veros’ senior vice president of operations. “These models are particularly important as the most recent update to the Interagency Appraisal & Evaluation Guidelines highlighted the need for thorough testing of all valuation methods of all varieties. Utilizing multiple AVMs according to performance is an efficient and effective approach to valuation. RVM is another high-performing model to add to our impressive list of available AVMs.” Veros will market RVM to its extensive client base as a standalone product as well as through its valuation management platforms: VeroSELECT and Sapphire. “The Realtors Valuation Model was created to assist the housing market— from Realtors to investors—with improved analytics that enhance how properties are priced and evaluated,” said Tricia McClung, RPR VP of business development. “RVM leverages a broad array of property information, including Realtor market data, for a comprehensive, current, and reliable valuation result. We are thrilled to be working with Veros to deliver RVM to the industry.”

Open Mortgage LLC celebrates its 10-year anniversary in January by offering a FirstTime Homebuyers Nationwide Special. All first-time homebuyers that submit their mortgage application with Open Mortgage between Jan. 2, 2013-March 31, 2013 will receive a free appraisal. In addition to the First-Time Homebuyer’s Special, Open Mortgage is offering a First-Time Homebuyer’s Video Contest. First-time homebuyers who obtained their loan with Open Mortgage can submit a video tape of their experience obtaining their loan as well as presenting the keys to their new home. These videos from across the country will be submitted to the Open Mortgage Corporate Contest Panel who will choose the winning video. The winner of the contest will receive $1,000 for new home furnishings. Winners are to be announced on April 30, 2012. During 2012, the company added 44 new branches throughout the country and increased its corporate staff by 15 percent, while establishing successful partnerships with industry leaders that further benefit our customers. “Ten years in operation during the most difficult time in the mortgage and housing industry is an incredible achievement of which we are proud,” said Scott Gordon, CEO of Open Mortgage LLC, adding “As we celebrate and move our business forward, we are excited about what is to come over the next 10 years.”

Radian’s MI Now Available Through Mortgagebot’s LOS to Provide MI on

HarmonyLoan Feature Radian Guaranty Inc., the mortgage insurance (MI) subsidiary of Radian Group Inc., has announced a completed integration with Mortgagebot to include Radian MI in its loan origination system (LOS)— Mortgagebot EnterpriseLOS. Mortgagebot provides mortgage lending technology to nearly 1,300 banks and credit unions nationwide. This partnership will streamline the loan origination and ordering process for both Radian and Mortgagebot’s LOS customers, allowing them to order MI directly via one simple process through the Mortgagebot platform. “This is exciting news because it’s one more way Radian is working to accomplish one of our top priorities—making it easier than ever to do business with us,” said Brien McMahon, Radian’s chief franchise officer. “Partnering with a well regarded leader like Mortgagebot will simplify how MI is ordered for many of our customers, and we’re proud to deliver that.” “Our integration with Radian is a winwin for both Mortgagebot and Radian customers alike,” said Matt Cotter, Mortgagebot’s senior vice president of sales and marketing. “Mortgagebot is all about

delivering lending technology that is flexible, scalable and innovative, and Radian is known as an innovator in the MI space.” Radian also announced that it will provide MI on loans within the HamonyLoan platform. HarmonyLoan is a mortgage feature designed by Mortgage Harmony Corporation, a financial services technology company and provider of innovative residential mortgage products. HarmonyLoan can be applied to fixed-rate or adjustable rate mortgages (ARM), conventional or jumbo loans, and on new and existing mortgages. It allows a borrower to adjust the interest rate on their loan without the need for a traditional rate-term refinance. When there is at least a 25-basis point reduction in their mortgage market rate, the homebuyer can reset their mortgage rate with just one click on a personalized, secure, Web-based site without the expense and hassle of a traditional refinance. “We are pleased to offer prospective homebuyers the opportunity to purchase their home with a mortgage feature that gives them greater flexibility,” said Brien McMahon, Radian’s chief franchise officer. “HarmonyLoan allows a homeowner to lower their interest rate and monthly mortgage payment without the closing costs and administrative burden of a traditional refinance. It ultimately improves their financial position, which is a win-win for everyone.”

Specialized Business Software Upgrades Docunym for Servicers Specialized Business Software has upgraded its Web-based Docunym enterprise document management solution with additional workflow management capabilities for mortgage servicing companies. The new enhancements enable users to log into a digital dashboard and simultaneously view multiple documents such as insurance and appraisals in electronic job folders. The technology automatically links related documents together and eliminates the traditional requirement of users having to manually search for documents. A new custom reporting feature allows users to create detailed reports on pending projects and save report criteria for future use. This 2.0 release of Docunym also includes many other enhancements to scalability and usability. “Our Docunym solution provides mortgage lenders with a tool to go paperless and more effectively manage the way documents and information are used by their employees,” said Steve Wiser, president and founder of Specialized Business Software. “This increases the speed and efficiency in which tasks are completed.”

Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the


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of starts, the foreclosure rate will continue its upward trend. Here are some of the key findings from the data: n The foreclosure inventory is growing: The data indicate that foreclosure starts have outpaced completions since March 2009, when ForeclosureResponse.org began tracking foreclosures. Unemployment and delinquency are a circular problem. Unemployment impacts housing markets when borrowers struggle to make mortgage payments. Distressed housing markets make it more difficult for homeowners to sell their homes to access job opportunities in other areas. n Coastal metros are suffering more than the heartland: Metro areas in coastal states like California and Florida tend to have higher rates of unemployment and serious delinquency than areas in the Central U.S. like Texas and the central plains states. Foreclosure-Response.org’s quarterly report of seriously delinquent mortgage rates—defined as the percentage of home loans currently in the foreclosure process plus the percentage of loans more than 90 days delinquent— provides a strong indicator of the number of foreclosures likely to enter the market in the coming months. Data are available at the metro area level and compared to earlier data for change over time. The analysis reports on metro areas hardest hit by the foreclosure crisis and trends found in the new data.

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Upticks in recent months among a number of housing indicators point to a slow and steady growth in the nation’s housing market in 2013, but several challenges remain, according to the latest economic and housing forecast by David Crowe, chief economist for the National Association of Home Builders (NAHB). “Consistent, positive reports on housing starts, permits, prices, newhome sales and builder confidence in recent months provide further confirmation that a gradual but steady housing recovery is underway across much of the nation,” said Crowe. “However, stubbornly tight lending standards for home buyers and builders, inaccurate appraisals and proposals by policymakers to tamper with the mortgage interest deduction could dampen future housing demand.” Stating there is no consistent national trend, Crowe noted the housing recovery is local but spreading. “We are transitioning from a very low demand level, where most people

early in 2011 and since early 2012 we’ve seen a six percent increase on a national basis.” Another factor spurring the recovery is that household formations are on the rise. In the early part of the decade, the nation was generating 1.4 million new households each year. This collapsed to 500,000 annually during the housing downturn and currently new households are being formed at close to a 900,000 clip per annum. As new households form at a growing rate, so too does builder confidence. The NAHB/Wells Fargo Housing Market Index, which measures builder confidence in the single-family housing

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Housing Market Remains on the Rebound for 2013

hold themselves out of the marketplace, to a case where supply will start being the problem,” said Crowe. “As we begin to build more homes to address that supply, the new home stock will be a much more important element of the recovery.” Setting the 2000-2002 period as a baseline benchmark for normal housing activity, Crowe said that owner-occupied remodeling has returned to previously normal levels. “Multifamily production is also well on its way, back to 69 percent of normal,” said Crowe. “It’s the single-family

market that has the farthest to go, standing at only 40 percent of what is considered a typical market.” Meanwhile, the number of improving housing markets across the nation continues to show considerable advancement. When the NAHB/First American Improving Markets Index (IMI) was launched in September of 2011, only 12 metropolitan areas out of 360 were on the list. As of December 2012, the list stands at more than 200 metro areas. The index is based on a sixmonth upswing in housing permits, employment and house prices. “One reason we have seen such a significant jump in the IMI is because house prices are beginning to recover,” said Crowe. “House prices bottomed out


A New Era for Mortgage Closings? Replacing the Closing Protection Letter with Independent Vetting Standards and Uniform Comprehensive Insurance Coverage BY RICHARD PETER STEVENS AND ANDREW LIPUT

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ardly a week goes by that we are not hearing about some type of fraud, scam, or escrow theft in the real estate and title insurance/settlement services industries. How do we protect ourselves from being a victim of one of these events? There is the old adage that you cannot protect people from themselves and their bad decisions. That is true when anyone of us listens to a “too good to be true” story, or a promised rate of return you would be a fool to pass up. However, not one of us should be a victim of escrow/closing table theft by a title insurance agency. And if we were the victim of such a theft, why isn’t there any insurance protection? After all, most of us use a title insurance agency for the real estate closing on a sale or a refinance transaction. Aren’t these agencies regulated by the government? The answer to both questions is yes! There is insurance and escrow regulation—in some states it is ineffective—in some states, nonexistent when it comes to protecting you from escrow theft.  The insurance departments in most states license the title insurance agent and a lesser number of states have escrow licensure. Licensure is the minimum threshold for entry into a business where relatively unknown individuals handle hundreds of millions of dollars of “other people’s money.”

There are basic licensure background checks and fingerprinting, but very few applicants are rejected unless the applicant admits to a prior felony conviction for dishonesty. Consequently, thousands of people in the settlement services industry must be bad actors or persons influenced by bad actors or we would not be experiencing escrow thefts. The settlement industry has but one option—it must purge the industry of these bad actors and implement systems to prevent new bad actors from becoming part of the industry. If the industry fails to act aggressively, then state and federal regulators will step in. The industry’s vetting process for agents has not proven to be adequate. The underwriters are losing millions every year in escrow thefts and the numbers are increasing every year.

Independent and objective validation is necessary One immediate option is an independent and objective vetting process for the individuals responsible for escrow disbursements. The independent vetting entity is objective because the process looks at the background and credit history of the individual and the vetting entity’s analysis is not influenced in any manner by the past or potential business contributions an individual could bring to an agency. Further, objective vetting is not static—as of a certain date, everything with “Individual A” is good. The new vetting process is constant—new information is continuously integrated into a database and the database is accessible to the financial

institutions 24/7/365. This is all critical information regarding an individual’s current conduct because current conduct will disclose activity that may reflect an inclination for theft or reflect an unusual demand for money. Once this information is available to the agency owners, financial institutions and underwriters they will then be able to closely monitor the individual’s activity and potentially prevent theft. As a former insurance regulator, I have witnessed firsthand the devastating consequences of escrow theft. Adding to the misery of their funds being stolen, most victims must litigate for the return of their funds because, in most states, the title underwriters are not responsible for the escrow operations of their agents. Mortgage fraud and escrow thefts involve many of the same elements. Financial institutions have spent billions of dollars on the front end of the loan process to prevent fraud. Now, the settlement industry must invest in its business model to prevent escrow theft or closing table theft on the back end of a transaction. Rather than complain about being over regulated—regulation that has not even come close to solving closing table theft; look at the real problem! The consumer is at risk and everyone else, including the Consumer Financial Protection Bureau (CFPB), is looking out for them. Now, right now, the settlement services industry must clearly demonstrate that the agencies and the people in the industry are not just sufficiently competent and capable to handle the transaction, but most importantly, this is an industry that can be trusted with other people’s money.

Independent vetting is a validation.

Vetting and risk rating provide tangible benefits for agents If you are one of the good guys, independent vetting is one of the best investments you can make in yourself and your agency. First, you are validated as a trustworthy individual. Second, your bad actor counterparts will not be validated and hopefully will be driven from the business. Both result in additional business opportunities for you. Make the investment in independent objective vetting and you will drive the bad actors out of your industry. Let’s take a detailed look at the problem. For years now, the mortgage and real estate closing process has been largely viewed by some banks and settlement professionals as nothing more than a glorified signing party. Concerns about fraud, infidelity and negligence on the part of those handling mortgage proceeds and bank documents and the other professionals who play a part in the settling of a transaction have been largely ignored. This has been true despite the fact that the concept of wiring funds to a closing agent who is largely unknown and allowing strangers to handle mortgage documents and disbursements without uniform standards seems counter to prudent business practices. Today, title underwriters, who have been primarily self-insured on their direct operations, have seen claims rise, profits dwindle, and lawsuits by lenders and consumers stack up at courthouses continued on page 40


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“… thousands of people in the settlement services industry must be bad actors or persons influenced by bad actors or we would not be experiencing escrow thefts.” —Richard Peter Stevens

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around the country. In addition, the underwriters have also experienced increased claims, reduced profits, and lawsuits from the independent agency operations. Consequently, any notion that title underwriters will continue to allow agents to bind them for acts of negligence and infidelity by closing agents requires radical readjustments and new thinking. Likewise mortgage lenders and consumers cannot continue to rely upon the closing protection letter (CPL) as a form of insurance against losses from mortgage fraud and escrow theft because it is not an insurance product. The CPL offers very limited coverage for losses. Quite frankly it is time for the title underwriters and their issuing agents to get out of the escrow insurance business and for lenders to utilize third-party sources for underwriting and insuring risks at the closing table.

It’s all in the numbers Anyone connected to the mortgage and real estate industries is familiar with the numbers, but they are worth a reminder. The FBI has called mortgage fraud the number one white collar crime in America after terrorism. The FBI has allocated more agents nationwide to investigating escrow fraud than any other white collar crime. In 2011, the FBI reported $11 billion in mortgage fraud losses from SARS filings, and for 2012 the number is estimated to rise to $13 billion. The FBI estimates that 15 percent of those losses are directly attributable to escrow and closing fraud. These figures appear to be supported by the Financial Crimes Enforcement Network (FINCen) July 2012 study of SARS reports between 2003-2011 which indicated that there has been unacceptable growth in fraud losses in the escrow and closing area, with a 20 percent increase in the most recent period. According to statistics published by

the National Association of Realtors (NAR) and Mortgage Bankers Association (MBA), there are 8.5 million mortgage closing transactions annually, with the average loan size approximately $175,000.00. Each of these loan transactions requires a closing attended by a settlement agent, so that means that in 2012 lenders will have delivered more nearly $1.5 trillion (and the collateral security documents to establish their legal right to repayment) into the hands of a virtually unregulated industry.

Yes, there really is fraud at the closing table While fraud can take place in any part of the loan process, lenders are most at risk at the closing. Settlement agents, who are responsible to disburse the lender’s money, to supervise the execution and delivery of the deed, note and mortgage instruments, are traditionally subject to little or no scrutiny. Escrow licensing, while important as a barrier to entry into the profession, it is not risk management. There is not one license that covers all of the various actors who handle funds and documents during a closing which, depending upon the state or region, includes lawyers, escrow agents, title agents, lenders, closers and real estate agents. The current vetting by title underwriters and some banks is primarily static. It is not ongoing, it is not uniform, it is generally focused on entities, and does not involve the sharing of data nor is that data maintained in a user accessible database. You need only review of the FBI fraud statistics and the Mortgage Fraud Blog to realize that whatever is being done now is not adequate. Agents are still stealing funds, aiding fraud at the closing and looking the other way on questionable transactions. Current agents have relationships with the parties, while good in a business

sense, these relationships invite compromise. On one recently reported incident, an agent documented a non-existent buyer’s cash to close, permitted same day property flips, and failed to notify the lender when funds were accepted from and disbursed to third parties not identified as formally connected to the transaction. The theft of funds and other frauds are serious problems, but are not the only way that unsupervised agents can cause havoc. Settlement agents can also act negligently, by failing to obtain the properly signed note, or to record the mortgage, thereby creating significant liability for lenders. Since settlement agents, including lawyers, are not uniformly required to carry liability insurance or fidelity bonds, lenders and consumers can have little faith they will recover their losses resulting from negligence or bad acts by settlement agents at closings. In the past lenders have assumed the risk associated with the unregulated and unsupervised nature of the closing process because losses from fraud at the closing had historically been a small percentage of overall mortgage fraud damages. That is why most lenders focused whatever spending they could allocate to fraud deterrence on front end fraud detection software, such as Social Security Number verification, automated appraisal reviews and similar products. According to the National Mortgage Bankers Association, lenders spent approximately $1 billion on fraud deterrent software to use in the origination and underwriting process in 2011. The amount of money spent to address fraud and negligence at closing was not in the calculus.

The inadequacies of the CPL Other than faith in law enforcement, what can a lender do to reduce the risk of loss due to fraud or negligence at a closing? Each day when lenders wire millions of dollars into the trust accounts of attorneys and non-attorney settlements agents they have historical-

ly relied on the closing protection letter (in some states known as the insured closing letter) issued by title underwriters, through their agents, to seek recovery for their losses. These letters provide no relief when a settlement agent engages in intentional acts other than outright theft of funds, or when an agent’s negligence fails to rise to a noncurable cloud on title. The letter provides coverage for the lender against intervening liens. Fraudulently recording, cash to close on the HUD-1 with a straw buyer, and fraud for profit schemes are not covered incidents? As long as the insured can still foreclose, there is no coverage and no claim for lost interest or principal payments on the loan, cost to foreclosure, cost to repurchases (i.e. premium recapture), etc. In the state of California, case law even supports the proposition that a closing agent has no legal or contractual obligation to report fraud at the closing even when the agent may personally witness suspicious or even fraudulent activity taking place. In 1999, in Voumas v. Fidelity National Title Company, the California Court of Appeals held that settlement agents have “no duty to police the affairs of a lender,” and have no obligation to “report fraud.” Similar results were reached in the California decisions found in Axley v. Transational Title Insurance Company and Lee v. Title Insurance & Trust Company. In reality, a CPL looks and smells like an insurance product, and today, is charged to the borrower like it is insurance, but, in fact, is not insurance. Nor is the CPL assurance against mortgage fraud or theft at the closing table. Furthermore, there is no national standard for issuing closing protection letters. In most cases the lenders have had no real comfort in the existence of these letters as a method of evaluating the experience, trustworthiness, and reliability of the agents who will handle their funds and documents at a closing. continued on page 53

“Quite frankly it is time for the title underwriters and their issuing agents to get out of the escrow insurance business and for lenders to utilize thirdparty sources for underwriting and insuring risks at the closing table.” —Andrew Liput


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market, has posted gains for eight consecutive months and now stands at a level of 47. This is very close to the critical midpoint of 50, where equal numbers of builders view the market as good or bad. The HMI has not been above 50 since April of 2006. Single-family home starts are projected to climb to 534,000 units this year, up 23 percent from 2011. NAHB is forecasting that single-family newhome production will post a healthy 21 percent gain in 2013 to 647,000 units. Starts will continue their upward climb in 2014, posting a further 29 percent rise to 837,000 units. Multifamily production is expected to rise 31 percent in 2012, reaching the 233,000 level, and posting a solid 16 percent gain in 2013 to 270,000 units. Multifamily starts are anticipated to rise an additional nine percent in 2014 to 294,000 units. Meanwhile, new single-family home sales are expected to rise from 307,000 last year to 367,000 this year, a 20 percent rise. Sales are anticipated to climb to 447,000 next year, up 22 percent from 2012 and jump to 607,000 in 2014, a 36 percent increase over 2013 levels.

NCUA Sues JP Morgan and Bear Stearns for $3.6 Billion Sale of MBS

Former DocX President Faces Jail Time in RoboSigning Probe

Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of: NMP News Flash column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

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n n

n

n n n

with) respect and do not violate Section 8 of RESPA. They tend to be confident, not arrogant. Egos do not affect others. In favor to their clients, they avoid steering and allow their clients to make informed decisions by understanding and comparing different options when referring others products or services. They hold themselves accountable for their actions when necessary and hold others accountable when necessary, without finger-pointing. They are strong and passionate, but easy to work with productively and understanding of the details. They are not happy with their performance unless their client is happy. They never forget that their employer is the consumer.

The year 2013 is fresh and we need to change our habits immediately if not already. Don’t settle for average and work toward perfection. Be passionate and work together with your local agents, but know that your clients are the most important party in the transaction. No one should be a push-over on either side or allow hopes of referrals to blind them away from their duties. 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 aharris@vantagemortgagegroup.com or visit AndyHarrisMortgage.com.

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n They set and only accept/suggest realistic closing dates on purchase agreements to match current averages and regulations facing the residential mortgage climate. n They are only influenced by accurate data and strive for information and continued education. n They understand that the financing process is the most important part of any non-cash transaction for both the buyers and sellers for a successful closing. n They know and communicate the benefits of homeownership, but also realize that a home is a liability and not an asset on a balance sheet. n They understand the basics of the government-sponsored enterprises (GSEs): Fannie Mae, Freddie Mac, in addition to Ginnie Mae, and that lender’s are controlled by these guidelines. n They are not “sold” into thinking one thing over another and do their research and use their experiences to uncover the facts. n They never sacrifice quality for revenue or alter focus with commission as priority. n Communication is timely and relevant to the process and not unrealistic when asking for updates or expecting something “should” be completed without following procedures. n As much as everyone works to avoid, extensions on closings are common nationally due to the current state of the market. Get the facts to avoid assumptions and communicate accurate information with clients to avoid confusion or frustration. n They (and the company they work

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Missouri Attorney General Chris Koster has announced that the state of Missouri and Lorraine Brown, former president of DocX LLC, have reached a plea agreement. Under the agreement, Brown will plead guilty to one felony count of forgery, one felony count of perjury, and one misdemeanor count of making a false declaration. Brown will be sentenced to a term of imprisonment of not less than two years and not to exceed three years in the Missouri Department of Corrections. During the period of March to October 2009, DocX, at the direction of Brown, instituted a surrogate signing policy whereby employees signed, not their name, but the names of other employees on thousands of mortgage documents that were notarized and filed across the country. Prior to 2009, similar signing practices were also employed at DocX. Brown concealed these practices from her clients, the national mortgage servicers, and the

the elite performer

Prosecutor. The Attorney General’s Office worked in coordination with the Boone County Prosecutor, the Jackson County Prosecutor, the Boone County Recorder of Deeds, and the Jackson County Recorder of Deeds.

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The National Credit Union Administration (NCUA) has filed suit in Federal District Court in Kansas against JP Morgan Securities and Bear Stearns & Company, alleging violations of federal and state securities laws in the sale of $3.6 billion in mortgage-backed securities to four corporate credit unions. NCUA’s suit— the largest the agency has filed to date—alleges that Bear Stearns made misrepresentations in connection with the underwriting and subsequent sale of mortgage-backed securities to U.S. Central, Western Corporate, Southwest Corporate and Members United Corporate federal credit unions. All four corporate credit unions became insolvent and were subsequently placed into NCUA conservatorship and liquidated as a result of losses from these faulty securities. These failures caused significant losses to the credit union system. J.P. Morgan Securities purchased Bear, Stearns & Co. in 2008, after the demise of Bear, Stearns & Co. “Bear, Stearns was one of several Wall Street firms that sold faulty securities to corporate credit unions, leading to their collapse and enormous losses across the industry,” said NCUA Board Chairman Debbie Matz. “Firms like Bear, Stearns acted unfairly by ignoring the rules for underwriting. They packaged these securities and then told buyers the paper was sound. When the securities plunged in value,

we learned the truth. NCUA is now working to hold these underwriters accountable and secure recoveries on behalf of federally insured credit unions.” The complaint alleges Bear Stearns made numerous misrepresentations and omissions of material facts in the offering documents of the securities sold to the failed corporate credit unions. The complaint states underwriting guidelines in the offering documents were “abandoned” and the misrepresentations caused the credit unions to believe the risk of loss was minimal. In fact, these securities were “significantly riskier than represented” and “routinely overvalued.” The faulty securities, the complaint states, “were destined from inception to perform poorly.” NCUA has eight similar actions pending against Barclays Capital, Credit Suisse, Goldman Sachs, J.P. Morgan Securities, RBS Securities, UBS Securities, and Wachovia. NCUA was the first federal regulatory agency for depository institutions to recover losses from investments in faulty securities on behalf of failed financial institutions. To date, the agency has settled claims worth more than $170 million with Citigroup, Deutsche Bank Securities and HSBC. “NCUA and credit unions have successfully worked together to restore stability to the credit union system,” Matz said. “Now we are holding responsible parties like Bear, Stearns accountable for their actions. It’s the right thing to do.”

parent company of DocX. The practices of DocX were brought to national attention by a “60 Minutes” report and resulted in several major lenders temporarily suspending foreclosures in 2010. “DocX’s robo-signing practices were the worst in the county. Surrogate-signing crosses the threshold into criminal activity,” AG Koster said. “This agreement brings to justice the person most responsible for these activities and upholds the principle that when you sign your name to a legal document, it matters.” Brown’s plea of guilty to forgery and making a false declaration will be entered in Boone County where a criminal prosecution is ongoing by the Missouri Attorney General and the Boone County Prosecutor. Brown’s plea of perjury will be entered in Jackson County where a criminal prosecution is also ongoing by the Missouri Attorney General and the Jackson County


Changing Market Opportunities: What Originators Should Know That Can Impact Career Changes By Eddy Perez As the mortgage industry undergoes continued signs of recovery, many lenders are hiring again—but are much more selective in their qualification requirements for new employees. Where lenders were content to fill their ranks with relatively young, fresh-faced talent just a few years ago, today’s market demand is for proven, experienced professionals that not only do the job, but do it well.

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Where the industry is today Today, due to a combination of factors, the mortgage industry is experiencing a bit of a “brain drain” related to loan originators. When the Consumer Financial Project Bureau (CFPB) implemented new standards affecting loan originators’ compensation, many experienced professionals simply left the industry. Because many lenders are not willing to invest revenue to recruit and train new entrants, there is a significant concern that there will be a lack of talent developing within the industry in the future. Perhaps the largest contributing factor is that the majority of today’s originators are now paid a base salary plus basis points whereas in the past, they received a certain percentage of the revenue they generated from closings. As a result, originators are focused on quantity and quality because their compensation is based on flat production, rather than closing a handful of high revenue loans to generate the same level of compensation. The marketplace is going to face another change when the CFPB makes a final decision in January regarding new disclosures required under Dodd-Frank and the Consumer Protection Act. The good news is that lenders are starting to see some experienced loan originators that left the industry beginning to come back into the fold, but they still must be re-trained on new compliance rules and regulatory requirements. In an effort to attract the best talent, some lenders have gone so far as to hire

legal experts to help design a compensation structure that remains both compliant and competitive. Lenders are also expanding their internal compliance teams with professionals who are wellversed in compliance, fair lending and quality control to insure they have their bases covered on the day-to-day implementation of the ordinance requirements. As much as five percent of a lenders’ employee base is now completely dedicated to compliance. While this increases costs across the board, it helps alleviate the risk errors that could negatively impact business in the future.

Chartered banks versus mortgage lenders Additionally, there has also been a major shift in the workforce as numbers of loan originators have chosen to work for chartered banks over traditional mortgage lenders because the banks do not have the same licensing requirements, such as background and credit checks. While an originator may see working for a bank as a quicker path to entry into the industry, the potential downside is that if that originator ever decides to take the licensing test required to work for a mortgage banker, the National Mortgage and Licensing Systems (NMLS) instantly notifies their current employer—an uncomfortable situation for the originator who could be fired immediately, regardless of whether or not they pass. This negatively impacts the industry as a whole because it may keep disgruntled employees working for a bank (which does not benefit the originator or the bank) and it prohibits originators from testing their potential value in a free market environment.

How mortgage originators can evaluate their current situation One of the constant refrains of mortgage originators today is, “If company X

n Rates: If your company can do this, why can’t is not competitive in the mine?” The simple truth is industry’s hyper competithat there is always a level tive marketplace, then of risk that one company is you are missing out. willing to take that others However, your company are not. Additionally, may have the best rates in mortgage originators must town, but if you do not carefully consider that have enough support in every company has its own your corporate office to set of strengths and weakget the loans processed, nesses and he or she must underwritten and closed, evaluate where they would then the best rate means best fit as an employee. “Because many Some companies are lenders are not willing nothing. n Compensation: In the more willing to take more to invest revenue to risks in business because recruit and train new era of Dodd-Frank, is your company being fair in they are not hindered by entrants, there is a relation to your competithe large legacy issues of significant concern tors? The same argument companies that continue that there will be a to do business in the same lack of talent develop- on the best rate applies way as they did preceding ing within the indus- here. You can have the best compensation plan the mortgage industry try in the future.” but without support staff, crash. it is meaningless. A major factor that the industry uses to evaluate risk is the Federal Housing n Longevity: Make sure the company you join is financially sound. Do they have Authority’s (FHA) Neighborhood Watch a good FHA compare ratio? It is system, which evaluates a lender’s loan important to have good relationships performance over a 24-month rolling with their funding source, whether it cycle using a formula of defaults to origiis a bank or a warehouse bank. nations. This formula is referred to as a Trouble will be on the horizon if the compare ratio because it factors a compabank has a poor capital ratio or a priny’s defaults vs. lenders in its area. If a vate mortgage banker does not have lender’s compare ratio is at 100 percent, sufficient liquidity. then its defaults compare with its peer group. A company may also have a stellar compare ratio with FHA, therefore the risk Looking ahead is lower if the loan does go into default. Of While there is still a great amount of uncercourse, if a company is not dependent on tainty concerning the CFPB’s disclosure the large lenders to sell its loans, there is requirements, the leaders in the marketa larger pool of product and guidelines place have been preparing for the proavailable. Companies that are able to posed changes since the law took effect securitize their loan portfolio have a dis- back in 2011. Proper preparation for new regulations will create and environment tinct advantage in the market place. Not every company is going to take that encourages employees to embrace advantage of every loan type or take all the changes and perform at a higher level, of the risk to get each and every loan rather than creating disgruntled employdone. Just because a fellow loan origina- ees who may try to challenge every aspect tor closed a deal on a tougher loan does- of the new law. It is best for lenders to face n’t necessarily mean his company is ‘bet- the changes head on and not push them ter’ than your current employer. There is aside to deal with down the road. The broader industry implications of a great deal of evaluation factors that every mortgage originator should careful- the new regulations are that all lenders ly consider before deciding to jump the (large and small) will be on a more even playing field—rewarding those companies fence: that have invested time, resources and n Service: How responsive is your corpo- training to their originators. rate office to your needs? Can you get your underwriting staff to return your Eddy Perez is president of Atlanta-based phone calls? Is your closing depart- Equity Loans LLC. Eddy has more than 10 ment quick to the draw in working years of experience in the mortgage industry with your title companies needs and as a top producing loan officer, sales/branch manager and executive. He may be reached consistently available? by phone at (678) 205-4050 or e-mail at eperez@equityloans.com.


weeks of intensive ventional work experitraining to ensure the ences. Not everyone has most productivity when these qualities and you they start. During that may have to dig deep to time, helping them find them, but the understand every facet rewards are worth it. of the company and This also allows you to Sullivan daily operations is hire a wider range of essential. I usually have people with different new salespeople sit with history or education in sales. I start- strengths that will someone in each ed at the junior sales level and improve your overall department for a short quickly realized that my years of sales impact. period of time to fully connecting with people on the road “In this age of understand what each to build my audience (as well as pay Look everysocial media, the department does and my bills) were exactly the tools I where, and importance of the role they play in the needed to succeed. I also already look often checking up on an success of the company. knew how to handle a wide variety Always be on the lookapplicant’s Internet This also serves as an of personalities, and how to be truly out for your next sales- presence is implicit.” introduction to other appreciative of people’s time, person, whether you whether they bought whatever I was need them now or not. There have departments and employees to help selling or not. I advanced quickly been many instances where I needed integrate the new employee from the because I sold a lot, and I sold a lot a new salesperson and would recall outset and make them less afraid to because people wanted to talk with conversations with people that res- ask questions. Trained employees are happier me because I make an effort to con- onated, making them the first ones I and more confident and it’s much nect personally. called just to see if they were intereasier to get productivity out of I learned more about sales being ested before starting to interview otha musician than I ever did in a book, ers. Waiting until you desperately them if they’ve had the proper time classroom or even from a manager need to hire someone creates a sense to acclimate before starting their and because of that, I believe it’s of urgency and doesn’t give you the actual day to day duties. If they are pivotal to factor in real life experi- chance to devote the time and given a couple weeks to meet, search ence rather than strictly relying on thought necessary to bring on a truly and discover all the available education level or previous experi- valuable employee. Always keep peo- resources, they will be able to find ence in the same field when review- ple in mind so you’re not forced to information quickly and feel more ing applicants. hire or interview based solely on confident. Trust me, down the road For example, the reason I hired whatever resumes you happen to you will reap the rewards for taking the extra time from the beginning. the person who is now one of my top receive during your hour of need. salespeople had nothing to do with These are a few of the tips that his education or even his sales expe- Hiring well now will have helped me cultivate a strong, rience. As an acquaintance, he make your life much capable sales force that’s averaging shared with me how he’d been laid easier later off from his banking management Well-run companies these days are over 100 percent growth year-overposition and instead of collecting somewhere between lean and under- year. I hope they’ll do the same for unemployment and waiting around staffed so there is a tendency to try you, and please share your feedback for something similar to open up, he and get the new hire up and running and experiences by e-mailing me at took a job hauling and unloading as soon as possible, but it’s still chris.sullivan@alamode.com. soda out of a truck all day. His deci- imperative you give them the proper sion to take any job he could get time and training to make a positive Chris Sullivan oversees the national while still looking for the one he real- impact from the beginning. One of sales team for Mercury Network, and ly wanted is what made me contact the benefits of hiring the type of per- supervises Mercury’s largest, key him for my open sales position. His son I’ve outlined is how much easier strategic accounts. He has been with a work ethic and the fact that he was initial training can be. Already armed la mode inc. for 11 years, building willing to tell me that story indicated with an ability to connect and sell, invaluable expertise in vendor manto me that he was not only a hard, they just need to be caught up on the agement operations and appraisal motivated worker, but was also able basics of your particular company. compliance concerns with the largest to connect with people on a basic Keep in mind that when the new lenders and appraisal management and relatable level, an important employee joins your team, they will companies in the nation. Chris has sales quality. most likely have little to no back- been instrumental in the growth of Keep an open mind when learning ground about the company, the prod- Mercury Network, powering more than about an applicant’s background. ucts, tools, or processes it takes to be 20,000 compliant appraisal deliveries a day. He may be reached by phone at The innate ability to sell (as well as successful. connect with people) are both qualiI’ve found that it’s most beneficial (800) 434-7260, ext. 708 or e-mail ties that can be gleaned from uncon- to give any new hire at least two chris.sullivan@alamode.com.

Lessons From the Road: How to Hire Great Salespeople By Chris

Even though I manage a very successful sales force, I’m not what most people would consider a conventional sales manager. I don’t have an MBA, I only own a few Tony Robbins books, and selling Mercury Network is actually the only official “sales job” I’ve ever had. Truth be told, I rely largely on what I learned from touring as a musician for over 10 years. It’s really those skills that have made the biggest difference in my career selling software to mortgage professionals, and managing teams of very successful salespeople. The conventional sales and management techniques are pretty well documented, so I thought I would share some of the lessons I learned on the road for a different look at building a successful sales team.

Look beyond the resume … what are they really made of?

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Regardless of what their resume or online profile may say, what’s most important to me is that the person already has an innate ability to sell. You can always teach someone a product and give them the tools to sell it properly, but it’s tough to actually teach someone how to sell. I believe anyone can have this ability, regardless of whether they have a

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In this age of social media, the importance of checking up on an applicant’s Internet presence is implicit. I have to admit, the first thing I do when looking at the resume is to see if they have a LinkedIn profile and I check for any discrepancies. You can also usually tell a lot about the person by recent posts they’ve made, how they come across when communicating socially, and who their contacts are. It’s always my first step, and it’s an easy one so don’t forget it. A quick LinkedIn check can be very telling.

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How do they look on LinkedIn?

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A Framework for Evaluating Recruiters By Steve Rennie

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Being recruited by a company is commonplace in the mortgage industry. If you are reputable and successful with an established or growing business. Whether you were referred by a former colleague, previous manager, a referral partner may have said ‘nice things’ about you, being ‘recruited’ means your name found its way onto a contact list for an internal or external headhunter. The good news … you’re popular! The bad news is you’re popular! The recruiting industry includes many respected, knowledgeable and competent leaders of the highest integrity. But, it also includes those with little training, expertise and self-serving motives. The purpose of this article is to give you some perspective and a framework to evaluate the question “Do they know me well enough to recruit me, or is this just another person saying what I want to hear.” You may be perfectly happy and content in your current position. Why then is it still good to have other options or backup plans? None of us have a crystal ball that will tell us what the future is going to look like. If we did, we would be hedging our bets in Vegas or on the stock market and hanging with the likes of Warren Buffett, George Soros and Bill Gross. Large-, small- and mid-sized mortgage organizations are constantly at battle with the forces of nature, as well as with pipeline maintenance, regulatory changes, economic market pressures, boards of directors and a multitude of “game modifiers” that are 100 percent out of your control. What is in your control is to have some options outside of where you are today. As a proven winner, there are more people that will be knocking on your door in the future with promises of happiness and riches. How can you know to whom to listen? For many years, we at Hammerhouse have openly shared our framework for Model-Matching with the candidates we represent and the client companies with which we work. It allows for thorough due diligence in the Six Core Components of business, (Leadership, Culture, Business, Operations, Technology and Geography) and brings

an objective orientation to the evaluation process. Model-Matching also empowers candidates to apply the same standards to all of those who are recruiting them, including former acquaintances, cohorts and previous leaders and managers. Here is a three-step framework for evaluating the firms that are recruiting you.

1. Are they experienced in the mortgage industry? The mortgage industry is unique. It combines a one-of-a-kind sales culture, local market knowledge and a sphere of influence with an industry that is dramatically impacted by changes in market conditions and regulatory environment. You only want to work with a headhunter who has enough years of experience working in the mortgage industry to represent you with a crystal clear understanding of the landscape and the best of breed organizations in it. If they tell you they work with “topsalespeople across all industries,” politely inform them that you are looking for a specialist—not unlike yourself—who doesn’t need to “work across industries.” More importantly, every mortgage company in the country is trying to grow. Those headhunters with experience in the mortgage industry will only represent best of breed organizations with a clear understanding of their Six Core Components. Only then can they create value for you in the process.

2. Do they have a track record of placing top producers with top organizations and history in the markets served? Most recruiters and headhunters work with too many of the wrong kinds of organizations. They often move candidates from place to place, disguising success with activity. The best in the industry are happy to provide references from candidates placed and client companies served. They are also willing to share statistics on the success of those placements. Our firm proudly shares our track record of having an

annual rolling success meetings as well. Career rate of 87 percent of those decisions about your we have placed, not to business require much mention the bottom-line more than looking good impact made by the proon paper and looking duction achieved by the attractive on highly strucnewly placed employees. tured speed dates. We have also spent a Being recruited is a decade or more in many positive indication of a of the geographic markets career that is successful. we support today. However, never forget Someone who represents that you are the one who you should know the marshould be served and “Being recruited is kets in which they are a positive indication protected by the process. recruiting and the history Above all demand that of a career that is of those for whom they successful. However, any recruiter you work are recruiting. The more never forget that you with recognizes the sig‘dots’ that get connected nificance of making a are the one who in the process, the less change from one compashould be served risk there will be for you ny to another, as well as, and protected by and higher the potential the possibility of the negthe process.” of an opportunity to maxative impact you, your imize a Model-Match, as well as, to truly family, referral partners and customer create the right kind of marriage relationships could experience when a between your business and the organi- wrong move is made. zation recruiting you. Every organization in the United States is trying to grow their sales force 3. Do they have a defined today. They want to have more loans to process for mutual due keep their production ‘factories’ funcdiligence? tioning at maximum capacity in order Recruiting is a process, not an event. In to leverage economies of scale. In doing our Model-Matching process, we believe so, there are a lot of companies that the parties will have to get to “know” just want to recruit production and each other, before they can “like” each don’t take the time to really Modelother, which ultimately leads to “trust- Match you or your business to their ing” each other. Developing the Know, platform. Instead, they say what you Like and Trust, requires a series of care- want to hear, when you want to hear it fully structured meetings of discovery. and they sell you on false expectations. Some recruiters still ask for resumes. We’ve all heard too many stories, You and your business cannot be quan- from people we have known and have tified on a piece of paper. On the con- long-standing relationships with, about trary, you and your business have a improperly set expectations. The reality story. A headhunter with industry expe- is this: If you hold yourself and those rience will understand how to articulate recruiting you to the highest standards that story and present key data points during this process of learning about about your business that demonstrate each other, you can minimize the risk that you are the real deal and a VIP. of a bad move or being sold on a pipe If the person/firm recruiting you dream. Since you have proven to be does not have a defined process then it among the best—only accept the best is not likely to yield the information from those recruiting you. that either you or potential employers Congratulations again on your sucneed to make an informed, wise and cess and your popularity … but, be objective decision. You need not waste careful out there! your time, the recruiter’s time and any company’s time being part of a recruit- Steve Rennie is a managing partner at ing process that amounts to nothing Hammerhouse LLC, an expanding more than a paper review and beauty national recruiting and strategic growth contest. In this type of process, the firm for the financial services industry recruiter simply tries to make you look with mortgage sales and leadership great on paper or in an interview and placement at its core. He may be reached then tries to make prospective employ- by e-mail at steve.rennie@teamhammerers look great on paper or in staged house.com or call (949) 525-9407.


How to Keep Employees Happy By Kerry Elam Many of us are working at least 40 hours per week. Some of us find a sense of accomplishment and joy from our work. Yet we all desire to find happiness in our jobs. It is important for both the firm and the employees to take an active role in having a positive working environment. As Henry Ford said on teamwork … “Coming together is a beginning. Keeping together is progress. Working together is success.” This article will focus on ways to keep your employees happy through engaging them in the firm and ensuring an open line of communication.

1. Communication

Conduct an employee survey annually and provide detailed results and an implementation plan to include some of your employee’s ideas. People are more likely to provide meaningful comments if they know some of their ideas may be implemented.

After a designated number of years of service, give employees an award, it could be monetary, a gift or giving additional vacation. Employees want to be valued for being loyal to your firm.

5. Tenure awards

7. Charity Participate in charity events throughout the year as a firm. You can make it competitive by forming small groups to choose a charity of choice and have a competition to see who can raise most money and provide best support to the organization of choice. This allows you to focus on more than one charity at a time and acts as a team building exercise. Another option is to choose one local charity to support year round and encourage your employees to help with the various volunteer activities throughout the year.

10. Open door policy Make certain your employees know they can come and talk to anyone at any time— at the peer level, managerial level or executive level. By encouraging employees to talk and communicate, issues will be identified and resolved versus a culture that allows them to fester. Soliciting feedback so your employees have a “voice” is a key way to foster inclusion within the firm. Employees, who are able to contribute ideas of their own to the firm, are certain to be happier with results of change or new initiatives.

8. Training As we know, you learn something new every day. Encourage your employees to go to trainings of interest, industry seminars or conferences and offer in-house trainings. a. Develop a list of trainings for your employees that they may be interested in based on the skills you are trying to build within your firm. By doing the research for your employees, they may simply scan the list and choose one. b. Offer your employees an annual training budget and encourage them to utilize the entire budget each year. c. Hold trainings to teach your employees about the history and culture of your firm and how they can be successful. Ensure they are educated on how they are to portray the company and know what is necessary for them to continue to grow within the firm. d. Implement a leadership training program in which you either hire outside

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No matter what level you are in a firm, your actions will be followed. If you are nice to someone they will be nice back, if you act with compassion others will treat you will compassion, if you are engaged, others will follow your lead, if you smile at someone they will smile back at you. You are at work the majority of the time, so use your time in the best possible way. Utilize teamwork and workings towards a common goal, remembering you are all on the same team. Kerry W. Elam is managing director of operations and human resources with Actualize Consulting. She oversees the finance, marketing and recruiting functions of the firm, and is also responsible for facilitating knowledge management, training and social activities for the employees of the firm. She may be reached by phone at (703) 868-1506 or email kelam@actualizeconsulting.com.

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2. Listening

Implement a way for peers to recognize each other. A star player award is a way that employees can nominate their peers by providing management with the information on why the person should be awarded. The 9. Ask for help rewards can be monetary or Determine ways your prize-based, choose what “Frequent and employees can help grow works best for your firm. meaningful the business and increase Kudos are another way everycommunication will the bottom line. Make sure one in the firm can highlight give your employees to reward employees for excellent performance. the information they going above and beyond. Empower a culture in which need to make kudos are encouraged to decisions, foster ideas Some ideas include: Writing articles to promote blast out to all employees in and keep everyone subject matter expertise of the firm or to your immedion the same page.” the firm, marketing assisate team and if you do a newsletter, you can solicit kudos for each edi- tance or interviewing new members of team. People want to help their compation. nies be successful.

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4. Robust benefits package Review your benefits package each year to ensure it is the best on the market for your size firm. Ensure that you are paying for a portion for their benefits and consider having a 401k matching program, tuition reimbursement, training budget, referral bonuses, sales incentives and floating holidays. Also, consider if you do not already do so, having a performance bonus to reward your employees.

firms or do internally to ensure everyone is working together and learning lessons from each situation. e. Solicit ideas from employees on trainings they want you to offer. They may provide you with your training schedule for the year.

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An open line of communication is one of the most important aspects of ensuring your employees are aware of company news. Frequent and meaningful communication will give your employees the information they need to make decisions, foster ideas and keep everyone on the same page. Some examples include: a. Newsletters with relevant company information and include information on employees such as listing birthdays for the month, highlight an employee with their biography or interesting fact, provide information on industry training and conferences. b. “All Hands Meetings” or conference calls at least monthly and rotate ownership of the calls with management and staff to encourage participation and fresh ideas. c. Blast e-mails with real-time updates on the company. d. Encourage sharing of information across staff and with the management team by giving everyone a budget to get to know someone better.

3. Social events Getting together as a firm builds relationships, and in turn, will promote better teamwork. Make sure to determine what your employees like to do by sending out surveys to allow them to choose. Some ideas for different types of events are: a. House party: This is perfect if someone from the management team is willing to volunteer their house. Having a lowkey party at someone’s house allows for a relaxed party and much more socialization. You can have catered, hire a band, play games, give prizes or have a cooking contest. b. Sporting events: Choose a sport that the majority of your employees enjoy. c. Team building: Hire an outside firm to come in and host a team building event. As an alternative, you can play a sport together such as bowling, pool or laser tag. d. Rent a bus: Go on a field trip together depending upon preferences you could go on a wine tour, scavenger hunt, site seeing to local city or go to a close by theatre. e. Contests: Organize online contests around the football season or March Madness for basketball. Prizes can be company swag. This will encourage friendly competition that helps folks to get to know each other better. It assists with the friendly banter and those kinds of things really help folks to open up.

6. Recognition star player program


Boost Your Employee Performance in the New Year By Tyler Sherman

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Good tidings for mortgage lenders look likely in the New Year. The Federal Reserve plans to keep interest rates near zero through the year and beyond, and the housing market is improving. Of course, a housing recovery changing gears from tepid to mild might not seem all that impressive. But mortgage lenders will find more purchase loans in the mix, prompting them to hire more loan officers, underwriters and processors in 2013. To take advantage of these conditions and have successful year, mortgage company executives need to align their employees to their corporate goals and create a performance-driven, accountable and compliant business culture. Such a culture enhances productivity by creating a more competitive workforce, whose results can be measured and compared against industry peers. Only business intelligence technology can provide this cultural solution for mortgage companies. Business intelligence software gives senior executives real-time access to key data indicators, which can be used to measure the realtime performance of all departments, regions, branch offices and each employee in a company. But so few mortgage companies are realizing the complete benefits of this technology and how it can be used to unleash the full potential of their employees.

Putting data into action Business intelligence technology transforms company data into actionable information, which can then be used to mitigate losses or provide more resources and employees to the most profitable company services and products. It also brings disparate processes and employees, such as loan officers, in line with the company’s earnings and expense objectives. Business intelligence technology does this by collecting, maintaining and organizing the data from your company and providing you with the analytical tools to drill deeper into that data in order to gain a better understanding of your employees and company performance. Business intelligence and management software also gives lenders and servicers superior risk management tools that surround and supplement their existing technology. With its real-time reporting of employee performance, executives can quickly and efficiently identify personnel issues and correct problems before they result in significant losses. For example, business intelligence software can provide real-time quantitative measures, such as the number of loan applications per loan officer or loan processing turn-times. It also can

ensure that loan officers, loan processors, underwriters and closers are communicating together in real-time and are on the same page with corporate operations, strategies and goals. This information can then be used to create and encourage a high-quality employee culture and singleness of purpose.

One version of the truth

By benchmarking performance, business intelligence technology gives your employees an understanding of how they match up in the industry and what they need to do to beat the competition. It builds a productive, entrepreneurial and sustainable business culture.

“Business intelligence systems also allow senior managers to view key performance indicators of their employees, so they can see how they stack up against fellow employees and their peers in the industry.”

Mortgage executives constantly receive all kinds of information about their company from many different sources, not all of them objective. Business intelligence provides financial services firms with one version of the truth in company operations. This means key executives no longer have to judge which reports on company operations are accurate. They can instantly access all relevant company information, as well as apply powerful analytics to monitor operations and forecast key business metrics, such as earnings, revenues and expenses. The best business intelligence solutions can integrate with any existing company software system and immediately provide a real-time view of a mortgage company’s collective data, including staff performance. The software provides dashboards so that managers can view a company’s strengths and weaknesses on one screen. The data is constantly updated, so managers always have the latest, most relevant information to act on to improve productivity and company operations. From these dashboards, key executives can view high-level company and employee data—or a summary of this data over time—then drill down into the data to identify problems, find their causes and quickly solve them. Dashboards also let top managers track the real-time performance of branches around the country and measure their performance with metrics that take into consideration the performance of their leading competitors and state regulations. So you’re always on top of the latest trends in the industry and can determine if your company and employees are taking full advantage of them.

Helping managers keep score

Business intelligence systems also allow senior managers to view key performance indicators of their employees, so they can see how they stack up against fellow employees and their peers in the industry. These indicators are combined into scorecards, which constantly monitor the performance of staff and staff activity throughout the company, including all divisions, departments and individual employees. Are small-scale activities consistent with your company’s large-scale goals? A scorecard can tell you, enabling you to analyze your employee and operational goals with actual results. Scorecards can alert users at different levels in your company when performance thresholds have or have not been reached. Business intelligence software also eliminates much of the paper involved in a company’s reporting system. Detailed reports, including the latest financial and employee information can be viewed quickly on the computer screen without any need to print them or open new files. Executives do not have to manually piece together reports, since all relevant information is on the screen. With instant reports, mortgage executives have the latest loans per loan officer and risk management information from around the country at their fingertips. In a world of shifting mortgage regulations, business intelligence scorecards can help keep operational employees, particularly loan officers and underwriters, compliant. For example, managers can track in real-time the activities of every loan officer to make sure they meet all applicable industry laws and guidelines and stay in line with company rules and requirements.


Building employee accountability In order to successfully manage many business units and your employees, you must be able to clearly see their results. Business intelligence software creates a business management platform for lenders and servicers, which delivers transparency and accountability throughout the organization. It’s like watching your employees in real-time, all from a central location. You can pinpoint any adjustments required to maintain a business culture that remains accountable. We have learned over the years that the act of measuring employee or company operations can improve performance by around 10 percent. Measuring business flow and employee activities provide executives with the control to differentiate the performance of one area of the company from another. For example,

are closings being delayed by loan officers, underwriters or processors—and which ones? Using business intelligence technology, managers can view the performance of their entire mortgage origination team and easily make assignments to balance the workload and improve productivity and loan quality. But employees also can view their performance, too. This creates a self-competitive environment that encourages everyone to perform at his or her highest level. This not only makes your company more productive, but also improves your bottom line. Implementing business intelligence also allows a mortgage company to equip all levels of its organization with analytical reporting, which can include alerts to top executives regarding deviations in operating goals in various departments. This system of feedback mechanisms helps improve the perform-

ance of managers, which naturally leads to better corporate decision-making and hiring. This is because business intelligence software replaces subjectivity with objectivity in management decisions. Managing a mortgage company in a shifting regulatory environment would be extremely difficult without the constant real-time information provided by business intelligence. For example, business intelligence software can measure quantitatively the real-time costs involved in operational activities such as real estate-owned (REO) sales, short sales and loss mitigation. Management can immediately determine where cost savings can be found and employees can be more productive when they have unadulterated transparency in their operations. A business culture that fosters employee accountability, competitiveness, compliance and productivity is best achieved

with business intelligence technology. Business intelligence provides a better understanding of a company’s performance in all aspects of its operations. It delivers real-time insights necessary to maintain outstanding employee results. And it can bring disparate company operations back into line and working together. If mortgage companies really want to capitalize on improving market conditions, using business intelligence technology to get the most out of their employees, departments and branches is the only intelligent choice. Tyler Sherman is chief executive officer of Motivity Solutions, a business intelligence and business management technology provider. Motivity Solutions is located in Denver, Colorado. He may be reached by phone at (800) 411-5541 or email info@motivitysolutions.com.

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What to Do When You’re Hated at Work By Jean Kelley

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At some point in your career, you’ve probably felt disliked—or even hated— by someone at work. Maybe it was your boss, a co-worker, or someone in a different department you interacted with occasionally. Perhaps the person was trying to get you fired, make you look bad, or just cause you frustration and self-doubt. Does this sound familiar? Is it happening to you now? Whoever it was and whatever they did, this person made your work-life miserable and that’s a serious problem for your career, your health, and all your other relationships. Recent medical studies from all over the world show that being around someone who

negatively impacts you affects you physiologically as well as psychologically. These studies cite that everything from heart attacks to depression can result from an environment that’s toxic to you. Notice the key phrase “toxic to you.” Even though the environment might not be toxic to others, it might be toxic to you. So what can you do when you’re the target of someone’s dislike? In reality, no matter who hates you or what they’re doing to show it, you have three, and only three, options.

Option 1: Ignore it You may be able to ignore the situa-

detail how to approach tion, especially if the perand have these difficult son who hates you doesconversations. Research n’t work with you directit and then do it. ly, interacts with you infrequently, and isn’t Option 3: Leave trying to get you in trouOf course, if you can’t ble. If the brunt of the ignore the person and if problem consists of a you don’t want to fix the few mean glances in the relationship, then you elevator or a cold shoulalways have the option der in the break room, to leave. If you choose then ignoring it could be this option, be smart the answer. Sometimes “No one likes being about it. Don’t stomp you just need to develop hated, especially at thicker skin. work where we spend out one day out of frustration. Rather, explore However, if you have the majority of the other options within the a gnawing feeling in day.” company. If the organiyour gut every time you see the person, that means you can’t zation is large, confide in HR and see ignore it. The feelings are taking their if you can be moved to another office toll on you and will affect your health location or another department. If at some point. Remember, we’re the company is small, perhaps you social beings, so feeling hated is can transfer to a desk or office space stressful. Any additional stress will on a different floor or away from the negatively affect you in some way. person you’re having challenges with. Therefore, it’s time to look at option Sometimes physical distance is all the problem needs. number two. Realize that deciding to leave is a huge step in any job market. Option 2: Fix it Yes, you can fix the situation. To do Therefore, stay at your current job so, first realize your part in it. While while you look for another one. most of us wouldn’t lie to a trusted Taking action on your own behalf friend, we lie to ourselves every day. and knowing that another opportuSomething pivotal happened that nity is on the horizon could give you caused this person to hate you. the motivation you need to push Identify it. Perhaps you were hired through the challenges you’re curfrom the outside over them … maybe rently facing. you got the nicer office they wanted…perhaps the boss liked your mar- Put an end keting idea better … possibly you to the hate reacted to their constructive criticism No one likes being hated, especially in a negative way … or maybe you at work where we spend the majority mistakenly took their can of soda of the day. But once you know and from the break room refrigerator understand your options for dealing thinking it was yours. Look back over with the situation, you can take posthe course of your relationship with itive steps to ensure it doesn’t affect the person and pinpoint when the your career or your health. No matnegativity started and your role in it. ter which option you choose, honest Next, decide to have a much-need- communication—with yourself and ed “difficult conversation” with the others—is the key to creating a person. Realize that if you don’t talk work-life that is both prosperous and to the person, nothing will change. pleasurable. People are complex and we never know what they’re thinking unless we Jean Kelley, author and entrepreneur, ask them. Sure, we often think we is the managing director of Jean Kelley know what’s going on in someone Leadership Alliance whose faculty and else’s head, but in reality, we don’t. trainers have helped more than That’s why having this conversation is 750,000 leaders and high potentials up so important. Taking this step their game at work in the U.S. and in requires courage, but it’s always step Canada. She may be reached by e-mail in the right direction. There are many at jkelley@jeankelley.com or visit resources and books available that www.jeankelley.com.


When did we forget that mortgage brokers are the face of each home loan?

portfolios, it’s sometimes easy to forget that most homebuyers buy homes from people, not logos. For decades, the

seeking the American Dream. FGMC hasn’t forgotten that, and we’re providing our brokers the widest range of loan products and the most efficient lending processes possible to ensure your clients are getting into new homes ... and that you’ll be the one handing them the keys.

(800) 296-2275

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mortgage broker has been the trusted advisor to millions

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360 Mortgage Group: Delivering the “Gold Standard” of Responsible Lending to the New Mortgage Broker Community An Interview With Mark Greco, President of 360 Mortgage Group

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ark Greco is the president and founder of 360 Mortgage Group LLC, a privately-owned mortgage bank with a 100 percent focus on the wholesale mortgage lending channel. Based in Austin, Texas, 360 Mortgage was founded in August 2007 as a retail lender. However, Mark quickly realized the opportunity to enter the wholesale channel. In early 2010, 360 Mortgage made the strategic decision to exit the retail channel and committed all its resources to wholesale lending. Since that time, the company has successfully expanded its wholesale lending platform from coast to coast, most recently entering the Southeast Region of the U.S. 360 Mortgage is an approved Fannie Mae seller/servicer and GNMA issuer and is actively building a servicing portfolio, which will provide the Company with greater stability and financial growth opportunity. Today, 360 Mortgage is focused on delivering the “Gold Standard” in responsible lending through the new and improved mortgage broker community by delivering on its value propositions of consistent, competitive pricing, extensive product knowledge, and best-in-class technology and service. In addition, 360 Mortgage strongly believes that mortgage brokers are now well positioned and poised to regain market share. National Mortgage Professional recently sat down with Mark to get a progress briefing on the state of 360 Mortgage. Could you start by providing our readers with some background on 360 Mortgage and its operations? Mark: 360 Mortgage Group was originally founded in 2007 as a retail lender. In 2007, when the mortgage industry began collapsing, several big lenders pulled out of the third-party origination (TPO) segment of the industry. When we witnessed these companies abandoning the mortgage broker channel, we saw an opportunity for

360 Mortgage. With my background and years of experience as a loan originator, I felt I had a strong knowledge base of the mortgage broker community and was convinced that there were still many high quality brokers out there. Because of this, 360 Mortgage’s business model was modified to serve the mortgage broker market. In April 2008, while the majority of lenders were focusing on retail, we transitioned our business to focus 100 percent on the wholesale channel. This has allowed us to partner with some of the top mortgage brokers in the nation and serve them in what they do best – originating loans with a very high touch approach. How do you define the “Gold Standard” in responsible lending? Mark: Lending criteria is based on three major elements: a borrower’s ability to repay a loan, a borrower’s willingness to repay a loan, and the collateral that backs a loan. The most important aspect is the repayment of a loan. Going through a downturn, can really test the theory of who can pay a loan and who will pay a loan. The borrowers that have been able to maintain their payments during times of adversity are the borrowers that we are looking to work with. HARP 2.0 has opened the doors to many of those borrowers. The “Gold Standard” of mortgage lending is a loan that performs. Our entire company and process is based on delivering this “Gold Standard” to all stakeholders throughout the lending value chain. It takes the right borrowers, the right brokers, and

the right wholesaler working together to deliver the “Gold Standard.” Can you walk us through 360 Mortgage’s business model? Mark: A significant part of our business model is focused on identifying quality mortgage brokers. The industry as a whole has gone through a purging over the last six years. By and large, the majority of lending professionals that are still in this industry today are high quality mortgage professionals with significant experience. Our model is to partner with those professionals, to serve an underserved sector of the lending industry—the mortgage broker— and to make sure we work with the highest quality professionals in the wholesale channel. 360 Mortgage’s objective is to enable mortgage brokers to operate efficiently within a model based on service, speed and sustainability. We can deliver on these value propositions because we have a complete understanding of the mortgage business and how to execute in secondary marketing, risk management, communication, and marketing. Who are some key members of the senior team, and what attributes and experience do they bring to the company? Mark: 360 Mortgage has put together an impressive senior team of mortgage professionals and individuals of character. This team is an extremely collaborative team and has worked tirelessly to build 360 Mortgage into a growing company with a reputation of service and integrity.

For background, I ran a retail mortgage banking operation for about 15 years. This role not only gave me significant mortgage experience, but also made me very empathetic towards the challenges that mortgage brokers and originators face every day in our industry. The industry is more challenging than ever, and it takes people who are very knowledgeable and insightful to perform well. I founded 360 Mortgage in 2007, and I have served as president throughout that time. Andrew WeissMalik, our chief operating officer, has been in the industry for 12 years. Andrew handles all of our capital markets and the technology development. He has facilitated the efficiencies that we bring to the industry and to our customers. Andrew is recognized as an industry leader in mortgage-technology innovation and he utilizes his past experience in capital markets, mortgage-product development, and efficient operations to enhance the lending value chain at 360 Mortgage. Using Andrew’s technology, we believe 360 Mortgage Group employs the most advanced wholesale origination and operations platform in the industry. Al Crisanty, who joined us about a year ago, is our vice president of national wholesale production. Al was formerly the EVP of national production at American Brokers Conduit. When Al joined American Brokers Conduit, they had a very small wholesale presence, and Al was a major reason ABC grew it to one of the largest wholesale lenders in the nation. What lines of business is 360 Mortgage focused on today? Mark: 360 Mortgage is 100 percent focused on the wholesale channel. We exited the retail channel in January 2011 when many other lenders were entering this channel. This strategy was consistent with the contrarian’s approach that we have implemented since first opening our doors. The wholesale channel allows us to expand without overextending ourselves. Coupled with the fact that the wholesale channel is continued on page 53


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How the Global Economy Will Impact U.S. Mortgages By Barbara Zigah

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The housing market is arguably the sector by which the health of the U.S. economy is gauged; that it has been in the doldrums over the past several years is not in dispute, but it’s clear that there has been improvement in recent months and that the outlook is turning brighter. However, to understand why there is such optimism you have to first understand what drives U.S. mortgages. The three most important factors which control mortgage rate direction and subsequently housing demand are these; banking  capital, interest rates, growth and confidence. The goal of all major banks, and especially the major U.S. banks, such as Bank of America, JP Morgan Chase and Citigroup, is to preserve their capital base, at any and all costs. That means that when a bank loses capital as a result of bad investments, they have less spare capital; and less spare capital means less funding for mortgages. Bad investments have been a major problem in recent years, directly resulting in the credit squeeze that has traumatized investors worldwide. Though home-grown loans played a significant part in the banking industry’s downturn, bad sovereign-debt loans originating out of the Eurozone are equally to blame. It is the U.S. banks’ exposure to higher risk debt from the Eurozone, primarily Greece’s sovereign bonds but also (and more worrying) to Spain’s and Italy’s, which have affected exactly how much capital is available to lend. Because these countries have less money to lend for mortgages, it essentially quashes housing demand which results then in a drop in housing prices. Though it’s doubtful that housing prices will collapse in an environment such as this the problem is that they also won’t rise.

It would make sense that a rise in interest rates would have a negative effect on housing demand, while a drop in interest rates would have the opposite effect. But that’s not entirely accurate. When the Federal Reserve Bank raises interest rates, longer term (such as 30-year) Treasury-bond yields fall on expectations that inflation will fall and given that, long term rates begin to fall, as well. And because 30-year mortgage rates are linked to 30-year U.S. Treasury yields, the Fed’s hike in interest rates is actually a good thing. In fact, that is the essence of the Fed’s Operation Twist program. With an improvement in the U.S. economy, housing demand should also improve, and while 30-year rates might rise, they will do so steadily, not sharply. Growth is the most obvious link of the U.S. housing market to the rest of the world. The growth of the U.S. economy is very closely correlated to growth in the Eurozone and Asia, especially China which is the second largest economy after the U.S. If global growth is stable, then banks worldwide feel more confident in their lending, laying the groundwork for a positive Catch-22 scenario. The U.S. banking system is very closely linked to the European banking system, with the bond especially tight between the U.S., the U.K. and Germany. As a result, any escalation of the crisis in the Eurozone will eventually filter into the U.S. banking sector, hitting American banks hard and detrimentally affecting mortgage lending. U.S. economic growth will also take a hit and when growth falters, consumer confidence deteriorates and then, hand-in-glove, so does demand for housing. Mortgage rates won’t necessarily fall as quickly, either, also putting pressure on the demand side, because banks won’t be willing to lend during an environment they perceive as risky, and will attempt to preserve their returns by ensuring that their risk (of lending during a

period of slow growth) is suitably rewarded (through higher mortgage rates).

Eurozone defaults and the U.S. market Currently, the U.S. banking sectors’ biggest worry is what is going on in the Eurozone, with the largest risks they are facing coming from Spain and Italy. Spain, especially, could ignite a banking crisis there that will affect the U.S. There has, of course, been speculation that either of them (or Greece, for that matter) might default on their existing debt burden and be forced out of the Eurozone. Though the probability that any of the Eurozone members will be forced out of the Eurozone is remote, but the risk does exist nonetheless and U.S. banks must steel themselves, capital-wise, for just such an event, unlikely as it may be. According to the Bank for International Settlements, as of March 2012, U.S. banks’ exposure to Eurozone debt, specifically from Greece, Italy, Spain, Portugal and Ireland (also known as the PIIGS countries), totaled $770 billion or 7.5 percent of banks’ total direct and other potential exposures. That figure isn’t cast in stone as the data doesn’t reflect any collateral or hedges the U.S. banks might have put in place to lower their exposure, nor does it capture a U.S. banks’ secondary exposure, i.e. exposure to a German bank which is in turn exposed to a Greek bank, etc. One analysis suggests that the five top U.S. banks, which have a combined exposure of $80 billion to the Eurozone’s banks, have put into place $30 billion in Credit Default Swaps intended to offset a potential loss, making their net exposure $50 billion. The three major credit ratings agencies, namely Standard & Poor’s, Moody’s and Fitch, concur that the largest U.S. banks have been aggressively working to reduce their direct exposure to the those highly indebted

Eurozone nations. Earlier this year, the Federal Reserve conducted stress tests among the largest U.S. banks which showed that the majority of them would meet capital adequacy requirements even despite large potential losses. Though the U.S. banks’ exposure to the crisis over in Europe isn’t as great as that of those banks which are directly within the Eurozone, they are not entirely isolated. Nor are U.S. banks immune from the possibility of default of state and municipal bonds that they hold; any default or bankruptcy will squeeze U.S. banks’ lending capacity and compel them to lend less which is negative for mortgages. Last but not least, given the deterioration of the U.S. economy, it was no wonder that U.S. banks were overwhelmed by defaults on mortgage loans. The delinquency rates for the banking sector as a whole over the past 12 quarters has ranged between 10.14 percent and 11.25 percent which tends to validate banks’ reluctance to lend, however over the last quarter fewer consumers defaulted on their mortgage loans than at any time in the past five years.

Consumer confidence Over the past several months, housing sector data has been gratifyingly upbeat, with home prices, housing starts and builder confidence all on an uptrend. The Federal Reserve’s commitment to low interest rates and their implementation of Operation Twist to support the housing market are obvious drivers of that trend. For the last quarter, mortgage originations rose to $471 billion from $395 billion in the second quarter, an increase of 19.24 percent. Analysts anticipate that the housing sector will continue to improve. A recent news release from Fannie Mae’s Economic & Strategic Research Group said that fiscal uncertainty continued to pose challenges to the economic outlook but they were encouraged by an increase in consumer spending which has fed into the U.S. housing market, in particular in home sales and housing starts. Housing has been a drag on the economy over the last few years but they expect that this year the sector will contribute to economic growth and GDP, with still more improvement likely next year. The bottom line is that since the 20082009 financial crisis the U.S. banking sector has become increasingly conservative. As a result, the banks’ ability to manage their capital and even to maintain extra capital specifically intended for mortgage lending has substantially improved. Couple that with a systematic reduction in the U.S. banks’ exposure to the risky assets in general, and specifically the possible escalation of crisis events in Europe and that means that mortgage markets are likely to remain on firm ground for the foreseeable future. Barbara Zigah is a lead analyst at DailyForex.com, a Web site that offers daily market analysis, Forex broker reviews and other timely market information. She may be


a new era

Why would the title industry not move forward on its own initiative and embrace these same safeguards?

continued from page 40

Similarly, most lenders have had no standard policy for reviewing and verifying CPLs, not just for their validity (i.e. were they properly issues), but also to verify the credentials of this to whom the letters were issued.

Fannie Mae’s recommendations were ignored … now the CFPB has issued a mandate

Richard Peter Stevens is of counsel at Jones Waldo Holbrook & McDonough in Salt Lake City, Utah, where he acts as leader of the Insurance Regulatory Practice Group. He also serves as Judge Pro Tempore, Utah’s Third District Court, was Assistant Commissioner for the State

A solution: Certification and uniform standards The emerging solution is to supplement the vetting process currently used by the lenders and title underwriters with independent third parties to perform objective scrutiny and verification of the settlement agent’s identity and credentials.

The public wants change

an underserved sector of the market, it allows us to grow rapidly without creating a large liability for ourselves. You mentioned 360 Mortgage is one of the leaders in HARP 2.0 loan. Do you feel a HARP 3.0 should be introduced? Mark: I am certainly a proponent of HARP 3.0, primarily because there are a lot of people that financed their homes on sub-prime mortgage securities beginning in the late 90’s and through the collapse of the sub-prime market. These people’s loans are nonagency, and for that reason, they haven’t had the ability to refinance through HARP 2.0. Those that would qualify for the HARP 3.0, I envision, have made their payments even though they have been stuck at escalated interest rates of seven, eight, nine, or even 10 percent. From an economic perspective, I believe that those who do not have the opportunity to refinance right now create a risk for the recovery of the real estate market, as well as the overall economy. It’s not consistent with the efforts that the government has put forth to help consumers. If these borrowers have made payments, then it’s a safe opportunity for the government to invest in these individuals’ economic well-being. Do you anticipate that 360 Mortgage will continue to hire account executives in 2012? Mark: We will continue to grow in an assertive manner where and when opportunities present themselves. We are recruiting high-quality account executives throughout the U.S. and those that are committed to forming a unique partnership with mortgage brokers to help them understand today’s market challenges and opportunities, as well as build a significant business, are the ones we want to have join 360 Mortgage.

technology system keeps everyone informed at every key point throughout the mortgage lending process. In addition, 360 is one of only a handful of mortgage banks that are exclusive to the wholesale channel and do not compete with the mortgage brokers. Finally, 360 is one of the very few lenders offering the HARP product without any guideline overlays within the wholesale channel. Why do you think mortgage brokers are well positioned to take back market share? Mark: Consumers like having options, and that will not change. And because mortgage brokers have access to many different lenders, as opposed to just one bank, it becomes a better solution for borrowers. We have seen mortgage brokers begin to come back to the industry over the course of the last eight to 12 months as they begin to understand that market regulations are not going to destroy the broker or wholesale channel. We are confident that this trend is going to continue. HARP 2.0 has certainly helped on this front, as many mortgage banks do not understand, and therefore do not offer, HARP 2.0. These banks have stringent overlays or additional guidelines that do not open the doors to consumers who can and deserve to take advantage of HARP 2.0. Many originators who left the broker channel and entered the mortgage banking side of the business are now unable to service clients they have had for years. These originators might have put customers in loans in 2005 or 2006 on homes which are now upside down. Now the customers want to refinance, but because their former mortgage broker now works for a mortgage bank, they are unable to receive a solution because of the overlays being imposed. Mortgage brokers are seeing the opportunity to service clients in the wholesale channel, and we are seeing many professionals return to the broker side of the business. And best of all, many of them are looking to partner with 360 Mortgage for solutions. continued on page 63

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What differentiates 360 Mortgage from other wholesale lenders? Mark: We are 100 percent exclusive to wholesale and do not support a retail presence. Also, what truly differentiates us from other wholesale lenders is the technology we have developed in-house. The intuitive aspect of our

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In October 2012, an independent opinion poll was conducted by American Money Services of New York seeking public input on issues surrounding mortgage closings. The results were nothing less than fascinating, and should serve as a wakeup call for the settlement industry. An overwhelming majority of respondents believe that only attorneys should be permitted to act as settlement agents. That the attorneys should be more carefully regulated, that providing for their independent certification based on criteria including experience, is essential to establishing public faith in the process. Furthermore, 79 percent indicated that they were unaware settlement agents are not all required to have E&O coverage when handling their real estate matters, 92 percent believe that settlement agents should meet minimum uniform standards or experience and skill besides being licensed, 93 percent believe that banks need programs to better identify people who may commit fraud in mortgage closing transactions, 97 percent believe banks need policies and procedures to ensure that whoever handles the closing funds and documents is trustworthy, 44 percent believe banks giving mortgage loans are doing enough to protect consumers from losses for fraud, while 56 percent say they are NOT doing enough. Interestingly, in contrast to public positions taken by some agent groups, 93 percent of the public polled in the survey stated that they would feel more comfortable at a closing with someone who had an independent, vetted designation. Finally, 70 percent of those polled believe that with improvements such as additional protections from fraud at closing, lenders can rebuild the public’s trust in financial industry without government intervention. After decades of allowing the title industry to regulate the risks at closing the lenders and faced with highly publicized plans for a Washington designed, driven and enforced consumer protection regulations, the banks have already moved toward initiating new safeguards and self-regulated programs.

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Fannie Mae’s December 2005 Newsletter on “Preventing, Detecting & Reporting Mortgage Fraud” states in part that “mortgage lenders must know their business partners and consider using outside sources to selectivity choose closing attorneys and settlement agents.” These guidelines mirror the guidelines issued by the OCC for supervised banks in 2001. Yet until April 2012 there were very few lenders that followed this sound advice. Of course, in April 2012, the Consumer Financial Protection Bureau issued Bulletin 2012-3 which appears to mandate that non-bank entities, mortgage lenders and brokers, take affirmative steps to adopt adequate risk management policies to prevent consumer harm from third-party service providers. This Bulletin reaffirms the existing requirements for supervised banks to non-bank entities that have been in place for years. Today lenders, for the most part, have no comprehensive program to assess the risk from the actions of settlements agents. Compounding the problem, not one from the national or state bar associations, notary association, or title agents association have stepped forward with uniform standards, guidelines or requirements for certifying the qualifications of the people who control the loan documents and mortgage funds at closings nationwide. Recently, the American Land Title Association (ALTA) published a new set of title agent “Best Practices,” which is a welcome approach to publicizing uniform standards to a diverse industry. However even in the best of faith, with good intentions, voluntary industry associations have few resources to police their members, let alone turn them over to law enforcement and report them publicly for bad acts. Unfortunately, instead of embracing change in this area, some agents and small industry groups have decided to attack the messenger, or seek “exemptions” from compliance claiming that either “there is no problem,” or that “we are regulated enough.” Unfortunately, the escrow and closing fraud loss figures don’t support either position. Without a new method of vetting, monitoring and evaluating the risk of settlement agents, and properly insuring them for both fraud and negligence

at closing, it is foolhardy for lenders to continuing relying on the current closing protection letter as security for the proper coordination and execution of the mortgage loan closing process.

of Utah Insurance Department from 1999-2003 He serves on the Board of Advisors of Secure Settlements Inc. Andrew Liput has been a mortgage industry attorney for nearly 26 years, having served as a closing agent for numerous banks, as well as legal, compliance and regulatory counsel to numerous mortgage lenders. He founded Secure Settlements Inc. in April 2009 and presently serves as president and CEO.


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1st Advantage Mortgage ..................................................................................http://www.1amllc.com 1st Signature Lending, LLC ..................................................................................http://www.1stsl.com 360 Mortgage Inc..................................................................................http://www.360-mortgage.com Aapex Financial Solutions, LLC ......................................................................http://aapexfinancial.net ABC Family & Comm. Mtg. Co. ........................http://www.arizonamortgagenet.com/company_9.php Academy Mortgage ................................................................................http://academymortgage.com Academy Mortgage - Bakersfield CA ......................................................http://academymortgage.com Acclaim Mortgage, Inc. ............................................................................http://Acclaimmortgage.com ACT Appraisal, Inc....................................................................................http://www.actappraisal.com Adecco - Encino, CA ....................................................................................http://www.adeccousa.com Adecco Financial Services....................................................................................http://adeccousa.com Advanced Mortgage SVF ......................................................................................http://sky-valley.com Alliance School of Mortage Lending........................................http://www.alliancebusinessschool.com Alliance West Mortgage, INC ....................................................http://www.alliancewestmortgage.com Allied Mortgage Group ..................................................................................http://www.alliedmg.com Alpha Mortgage ..........................................................................................http://Ifyouneedmone.com Alpine Mortgage Planning............................................................................http://www.alpinemc.com AmCap Mortgage, Ltd. ......................................................................http://www.MaryPapageorge.com AMEC ..............................................................................................................http://www.amecinc.org American Equity Mortgage ................................................................http://www.americanequity.com American Fidelity Financial Services, Inc. ................................................http://www.illinoisrates.com American Financing........................................................................http://www.americanfinancing.net American Midwest Mortgage Corp. ........................................................................http://ammcorp.net American Mortgage and Equity Consultants Inc., Mequon, WI ......................http://www.amecinc.org American Mortgage Company ......................................................http://www.americanmortgage.com America’s Choice Home Loans ..................................................................http://www.achlonline.com AmeriFirst Financial Corp............................................................................http://www.amerifirst.com AmeriFirst Home Mortgage ..........................................................................http://www.amerifist.com AmeriNational Community Services, Inc. ..............................................http://www.amerinational.net AmeriPro Funding ................................................................http://www.cespey.ameriprofunding.com AmFam NUO ........................................................................................http://www.amfamseminar.org Amtrust Mortgage Funding, Inc ......................................................................http://www.amtrust.net Anchor Home Mortgage, Inc...............................................................http://www.theanchorteam.com Angel Oak Funding, LLC ............................................................................http://angeloakfunding.com Associated Bank ....................................................................http://www.associatedbank.com/careers Associates Mortgage Company ......................................http://www.associatesmortgagecompany.com Atlantic Home Loans, Inc. ..........................................................................http://www.ahlcareers.com Augusta Financial, Inc. ..............................................................................http://www.petercosfol.com BayBurg Financial, Inc ..................................................................................http://www.bayburg.com BBG Home Loans ....................................................................http://bbghomeloans.com/join_us.php Benchmark Mortgage..........................................................................http://www.iambenchmark.info BofI Federal Bank ..............................................................................http://www.bankofinternet.com Brickwood Mortgage Inc- Murrells Inlet, SC ..........................http://www.brickwoodmortgageinc.com Bridge View Funding (soon to be Ever Funding Group) ................................http://pcmcaffiliates.com Burke & Herbert Bank......................................................................http://burkeandherbertbank.com C2 Financial Corporation....................................................................http://www.c2financialcorp.com Cal Coast Financial Corp ..........................................................................http://www.calcoastmtg.com California Mortgage Advisors, Inc.....................................................................http://www.CalMtg.com Capital Financial Mortgage Corporation ....................................................http://www.capitalfmc.com Capital Lending, Inc. ................................................................http://www.CapitalLendingOnline.com Capital Mortgage ......................................................................http://www.capitalmortgageiowa.com Carrington Mortgage Services, LLC ......................http://www.carringtonhomeloans.com/lo/JayCollins Castle & Cooke Mortgage ........http://castlecookemortgage.com/find_location/branch/newportbeach Castle & Cooke Mortgage, LLC ..................................................http://www.castlecookemortgage.com

Catalyst Lending, Inc.......................................................................................http://catalystlending.co CBC National Bank ....................................................................http://www.cbcnationalbankmtg.com CCowan and Associates ..................................................................................http://www.ccowan.com Central Coast Home Loans ....................................................http://www.centralcoasthomeloans.com City 1st Mortgage ....................................................................................http://www.city1stIdaho.com Citywide Mortgage Associates, Inc. ................................................http://www.citywidemortgage.com Clear Capital ........http://tbe.taleo.net/NA8/ats/careers/searchResults.jsp?org=CLEARCAPITAL&cws=5 CNC Mortgage, LLC ........................................................................................http://www.cncmrtg.com Coastline Mortgage Consultants, LLC ............................................http://www.coastline-mortgage.com Collateral Group, Inc...........................................................................http://www.collateralgroup.com Colonial Family of Companies ..........................................http://www.colonialsavings.com/joblist.asp Colonial Savings ................................................................................http://www.ColonialSavings.com Commonfund Mortgage Corporation ..............................................http://www.commonfundmtg.com Community Lending of America, Inc. ................................................................http://www.clakc.com Consumer First Mortgage, Inc. ..............................http://www.mortgagescanbesimple.com/expansion Contour Mortgage ..........................................................................http://www.contourmortgage.com CoreFirst Bank & Trust..........................................................................http://www.CoreFirstBank.com Corridor Mortgage Grouip........................................................................http://www.corridormtg.com Covenant Mortgage........................................................................................http://www.covmort.com CRESTICO ........................................................................................................http://www.crestico.com Crown Financial Services ............................................................................http://www.crownloans.net DAS Acquisition Company, LLC..............................................................http://www.usa-mortgage.com Dimont & Associates................................................................http://hwww.dimontandassociates.com DocVelocity ..............................................................................................http://www.docvelocity.com Downs Financial ..........................................................................................http://www.downsinc.com E Loans Mortgage ..............................................................................http://www.e-loanmortgage.com Element Funding ..............................................................................http://www.elementfunding.com EMB Lenders Inc. ....................................................................................http://www.EMBLenders.com Emperiq Financial ........................................................................................http://www.emperiq.com ENG Lending ..............................................................................http://www.mylowcostmortgage.com Enterprise Lending Group, Inc ......................................................http://www.enterprise-lending.com Envoy Mortgage ..................................................http://www.mortgageprosus.com/Whyworkforenvoy Equity Mortgage Lending ......................................................http://www.equitymortgagelending.com Equity Wave Lending ....................................................................http://www.equitywavelending.com eValuation ZONE, Inc. ......................................................................http://www.eValuationZONE.com Evergreen Pacific Mortgage, Stearns Lending, Inc. ....................http://www.evergreenpacificmtg.com EXIT Mortgage LLC ..........................................................................................http://www.Exitmtg.com Fairmore Financial..................................................................................http://fairmoreMortgage.com Fairway Asset Mortgage (Falls Church, VA Branch) ..................http://www.fairwayassetmortgage.com Fairway Independent Mortgage ..........................................http://www.fairwaywholesalelending.com Fairway Independent Mortgage Corp. ..............................http://www.fairwaymtgny.com/Default.aspx Fairway Independent Mortgage Corporation ........................................http://www.fairwaynymtg.com Family 1st Mortgage................................................http://www.family1stmortgage.instantlender.com FCF Services Inc......................................................................................http://www.fcfservicesinc.com Fiduciary Funding, LLC ....................................................................http://www.fiduciaryfunding.com Finance Austin Associates, LP ................................................http://www.financeaustinassociates.com First American Home Mortgage, LLC................................................http://www.FirstAmericanHM.com First California Mortgage ..................................................................................http://www.firstcal.net First Centennial Mortgage Corporation ............................................................http://www.GoFCM.com First Citizens Bank ....................................................................................http://www.firstcitizens.com First Community Mortgage, Inc. ..........................................................http://www.fcmhomeloans.com First Equity Financial ..............................................................................................http://fefloans.com First Federal Bank of Boston ....................................................................http://www.firsteastern.com First Home Equity Loans ..........................................................http://www.firsthomeequityloans.com


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Legacy Lending Group - Salt Lake City, UT Branch ......................http://www.legacylendinggroup.com LenderCity Home Loans ..............................................................................http://www.lendercity.com Lenox Financial Home Loans ............................................................http://www.lenoxhomeloan.com Liberty Home Mortgages LLC ..........................................................................http://www.myLHM.com Loan Republic Financial, Inc. ................................................................http://www.loanrepublic.com Loan Simple Inc of Dallas ............................................................http://www.northdallaslending.com LoanCentral, LLC ......................................................................................http://www.LoanCentral.com Loanontime ..............................................................................................http://www.loanontime.com LoanSifter Inc. ............................................................................................https://www.loansifter.com Long Grove Mortgage ............................................................................http://longgrovemortgage.com Lynx Financial Group..............................................................................http://www.lynxfinancial.com MAAG ............................................................................................................http://www.maagllc.info Main Street Home Loans..........................................................http://www.mainstreethomeloans.com Mainstream Funding Network, Inc. ........................................................................http://www.mfninc Manhattan Mortgage..................................................................................http://www.mmcloans.com Market Consulting Mortgage ............................................................................http://www.macmtg.biz Marketplace Home Mortgage, LLC- Omaha, NE ............................http://www.marketplacehome.com Merit Finance Inc ..................................................................................http://www.meritfinance.com Metropolitan Funding Group Inc - Jenkintown PA ..........http://www.metropolitanfundinggroup.com Michael Scott Properties & Finance......................................................http://www.resourcerealty.com Mid Nation Mortgage Corp ............................................................................http://www.mnmgo.com MidCountry Bank (MN) ....................................................................http://www.MidCountryBank.com Midwest Family Lending Corporation, Iowa, Nebraska, and South Dakota ......http://www.midwestfamilylending.com Mortgage Brokers Network Corp, Inc ..........................................http://mortgagebrokersnetwork.com Mortgage Cadence, LLC.................................................http://www.mortgagecadence.com/home.aspx Mortgage Financial Group ......................................................................................http://mfglends.net Mortgage Investors Corporation ....................................................http://www.mortgageinvestors.com Mortgage Resources......................................................................http://www.mortgageresources.com Mortgage Security ................................................................................http://www.mtgsecurityinc.com Mortgage Solutions Financial ......................................................................http://www.msfhome.com Motown Financial, LLC..............................................................................http://motownfinancial.com Mount Olympus Mortgage Company ..........................................................http://momco.com/careers Mountain West Bank....................................................................http://www.mountainwestbank.com MSource Training & Consulting, Inc. ........................................................http://www.msource24.com MyCityLender..........................................................................................http://www.mycitylender.com National Mortgage Alliance................................................http://www.nationalmortgagealliance.com National Mortgage Staffing ................................................http://www.nationalmortgagestaffing.com National Mortgage Staffing LLC ..........................................http://www.nationalmortgagestaffing.com Nationwide Equities Corporation ..................................................................http://www.nwecorp.com Nationwide Title Clearing, Inc.............................................................................http://www.nwtc.com Neighborhood Loans ..................................................................http://www.NeighborhoodLoans.com netbranchology.com ..........................................................................http://www.netbranchology.com Network Funding LP ..........................................................................http://www.networkfunding.net New American Mortgage ......................................................................http://www.newamerican.com New England Home Mortgage LLC ............................................................http://www.nehmloans.com New Horizon Funding ..................................................................http://newhorizonfundingcorp.com New Penn Financial LLC ................................................................http://www.newpennfinancial.com New York Community Bank ..........................................................................http://www.mynycb.com NewDay USA........................................................................................http://www.newdaycareers.com Noble Home Loans ........................................................................http://www.NobleHomeLoans.com NOLA Lending Group ..............................................................................http://www.nolalending.com Norcom Mortgage............................................................................http://www.norcommortgage.com NOVA Home Loans ............................................................................http://www.novahomeloans.com Omega Financial Services, Inc.....................................................................http://www.fhaomega.com

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First International Bank & Trust - Fargo, ND ..........................................http://www.firstintlbank.com First Mortgage Corp-Ontario-Euclid Branch ..........................................http://www.firstmortgage.com First Mortgage Company..........................................................................http://www.allaboutfmc.com First Mortgage Group..........................................................................................http://www.fmgllc.net First Priority Financial ..............................................................................http://www.joinfpfiowa.com First Priority Financial Solutions................................................................http://www.loansbykat.com First Priority Financial, Inc ........................................................http://www.joinfpfnorthcarolina.com First Priority Financial, Inc.................................................................................http://joinfpfohio.com First State Mortgage Company, LLC ..................................................................http://www.thefsb.com First Valuation ......................................................................................http://www.FirstValuation.com FirstBANK Mortgage Partners ............................................................http://www.firstbankonline.com Flagstar Bank ..................................................................................................http://www.flagstar.com Foundation Financial Group ..................................................................................http://www.ffg.com Franklin First Financial ....................................................................http://FranklinFirstFinancial.com Freedom First Credit Union ....................................................................http://www.freedomfirst.com Garret Associates, LLC ........................................................................http://www.garretassociates.com Gateway Funding..............................................................http://www.gateway-funding.com/Mortgage Gateway Funding Diversified Mortgage Services, L.P. ......................http://www.joingatewaynow.com Gemstarr Mortgage Services ..................................................................http://gemstarrmortgage.com Generation Mortgage Company ......................................http://www.generationmortgage.com/recruit Golden Empire Mortgage Inc ........................................................................http://gemmortgage.com Good Friend Mortgage Inc. ..........................................................http://www.goodfriendmortgage.biz gotmortgage.com....................................................................http://www.gotmortgagewholesale.com Greenlight Financial Services..............................................................http://www.greenlightloans.com GSF Mortgage..............................................................................................http://www.gsflending.com Guardian National Bank....................................................................................http://www.gnbkc.com Gum Tree Mortgage........................................................................http://www.gumtreemortgage.com Hall Lending Group, LLC ................................................................http://www.HallLendingGroup.com HALO Capital ..................................................................................................http://www.sayhalo.com Hamilton Group Funding..............................................................................http://www.hgfdirect.com Hancock Mortgage Partners, LLC ............................................................http://www.hancockmtg.com HKA Staffing Services ................................................................................http://www.hkastaffing.com Home Loan Investment Bank ............................................................http://www.HomeLoanBank.com Home Source Mortgage....................................................................................http://homesource.com Home Star Mortgage Capital Corp. ................................................http://www.homestarmortgage.org HomePlus Mortgage ....................................................................http://www.homeplusmortgage.com HomeServices Lending ......................................................................................http://www.hsl-ga.com Hometown Lenders ........................................................................http://www.hometownbranch.com Hometown Lending/Bay Equity LLC ....................................................http://www.sedonalending.com HomeTown Lending, a Division of Bay Equity................................................http://www.HTLend.com Hyperion Bank......................................................................................http://www.hyperionbank.com ICON Residential Lenders, LLC..............................................................http://www.iconwholesale.com Ind Home Loans, LLC ..........................................................................http://www.indhomeloans.com Inlanta Mortgage ............................................................................................http://www.inlanta.com Innova Mortgage Services ..........................................................................http://www.innovamtg.com Innovative Lending Solutions ......................................................................http://www.innolend.com Integrity Mortgage & Financial Services, Inc...................................http://www.imfs@integrityyes.com Interbank Mortgage Company ....................................................http://www.interbankwholesale.com Interthinx, Inc ............................................................................................http://www.interthinx.com Intertrustbanc ......................................................................................http://www.intertrustbanc.com Invicta Finance INc ..............................................................................http://www.invictafinance.com J. Stevens Mortgage ........................................................................http://www.jstevensmortgage.com Kiel Lending (a Division of Mortgage Broker Services, Inc.) ......................http://www.kiellending.com LeaderOne Financial Corporation ..........................................................http://leaderonefinancial.com


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One Mortgage, Inc. ..........................................................................http://www.OneMortgageInc.com Open Mortgage ......................................................................................http://joinopenmortgage.com Open Mortgage Home Lending ....................................................................http://openmortgage.com Open Mortgage Home Lending ......................................................http://www.openmtg.com/jimvani Open Mortgage LLC................................................................................http://lindalitt@openmtg.com Open Mortgage, LLC ..............................................http://www.openmtg.com/home/dianebrayden.epl Opus Capital Markets Consultants ................................................................http://www.opuscmc.com Pacific Residential Mortgage ............................................................http://www.pacresmortgage.com Pacor Mortgage Corp ..........................................................................http://www.pacormortgage.com Paramount Equity Mortgage ..............................................http://www.paramountequity.com/careers Paramount Residential Mortgage Group ......................................................................http://prmg.net Partners Mortgage Corporation ......................................................http://www.partnersmortgage.com PennyMac Home Loan Solutions..............................................http://www.pennymacusa.com/careers Peoples Home Equity ....................................................................................http://phewholesale.com Peoples Home Equity (Virginia Beach) ........................................http://www.peopleshomeequity.com PHH Corporation............................................................................................http://www.phhjobs.com Pinnacle Lending Group, Inc. ............................................................................http://www.plgnv.com Pinnacle Mortgage Group, Inc. ....................................................http://www.pinnacle-mortgage.com Pinnacle Mortgage Group, LLC ..................................................http://www.mortgagebypinnacle.com Plant City Mortgage Corporation ..................................................http://www.PlantCityMortgages.com Platinum Home Mortgage Corp - Rolling Meadows, IL Corporate Branch..............http://www.platinumhomemortgage.com Plaza Home Mortgage, Inc ........................................................http://www.plazahomemortgage.com PMAC Lending Services Inc.................................................................................http://www.pmac.com PRC Funding Corp......................................................................................http://www.prcfunding.com Premier Lending ................................................................................http://www.PremierLending.org Prestige Home Mortgage LLC ................................................http://www.prestigehomemortgage.com Primary Residential Mortgage ..............................................http://www.DelawareMortgageLoans.net Primary Residential Mortgage - Southern California ............................http://www.PrimeResWest.com Primary Residential Mortgage, Inc........................................http://www.primarymortgagelender.com Primary Residential Mortgage, Inc.........................................http://www.bestcoloradomortgages.com Prime Appraisal Services ................................................................http://primeappraisalservices.com PrimeSource Mortgage ....................................................................http://www.wewalkyouhome.com Professional Mortgage Associates, Ltd.......................................http://professionalmortgageassoc.com Professional Mortgage Lending Services ......................................http://www.myfinancingonline.com Quality First Mortgage ..............................................................................http://www.qfmortgage.com Quality Mortgage Lending ........................................................http://www.qualitymortgage4you.com Rate One, Inc. The Mortgage People ..................................................http://www.rate1mortgage.com RatePro Mortgage ............................................................................http://www.ratepromortgage.com RealEstateBestJobs.com ................................................................http://www.RealEstateBestJobs.com Regional Mortgage Corporation ....................................................http://regionalmortgageonline.com Reliance First Capital, LLC ............................................................http://www.reliancefirstcapital.com Republic State Mortgage Co. ..................................................http://www.republicstatemortgage.com Residential Finance Corporation ............................................................http://www.myrfccareers.com Residential Home Funding Corp. ................................................................http://www.rhfunding.com ReverseMortgageOne, Inc. ........................................................http://www.reversemortgagesone.com RFC Residential Finance Corp.........................................................http://www.residentialfinance.com RPM Mortgage, Inc...................................................................http://www.rpm-mtg.com/careers.html Rushmore Loan Management Services....................................................http://www.rushmorelm.com SAFE Credit Union ..............................................................................................http://www.safecu.org Sagamore Home Mortgage,LLC..............................................................http://www.sagamoremtg.com Satori Mortgage ..................................................................................http://www.satorimortgage.com Seaway Community Bank ....................................................................http://www.seaway-online.com Service First Mortgage ........................................................................http://www.ServiceFirstMtg.com Shield Field Services ......................................................................http://www.shieldfieldservices.com

Sierra Pacific Mortgage ............................................................................http://www.swmortgage.com Sierra Pacific Mortgage Warwick Rhode Island ........................................http://www.myloan123.com Silvercreek Finance Corp. ..............................................................http://www.silvercreekfinance.com Sistar Mortgage ............................................................................................http://sistarmortgage.com Skyline Home Loans ......................................................................http://www.skylinehomeloans.com Smart Mortgage Centers, Inc. ............................................http://www.smartmortgagecentersinc.com Smith Broady & Associates, Inc...............................................................http://www.smithbroady.com Southeast Mortgage ....................................................................http://www.southeastmortgage.com Southern Funding Alliance..................................http://www.southernfundingalliance.com/Innerloop Southern Trust Mortgage, a subsidiary of Middleburg Bank ................http://www.southerntrust.com Stearns Lending, Inc. ......................................................................................http://www.stearns.com Stokes Mortgage Capital ..................................................................http://stokesmortgagecapital.com Stonegate Mortgage ..............................................................................http://www.stonegatemtg.com Stonehill Group....................................................................................http://www.stonehillgroup.com Strock & Tanner Mortgage ..........................................................................http://www.stmcloans.com suman khanna ....................................................................................................http://primerica.com Summit Funding, Inc. ..................................................................................http://summitfunding.net Summit Mortgage Corporation ......................................................http://www.summit-mortgage.com Sun West Mortgage Company ............................................................................http://www.swmc.com Syracuse Securities, Inc-Western New York ....................................http://www.syracusesecurities.com Texas Reverse Mortgage, Inc. ....................................................................http://www.reversefacts.org The Lending Company ..........................................................http://www.jointhelendingcompany.com The Lending Company San Diego ..........................................................http://www.thelendingco.com The Lending Partners ................................................................................http://www.tlpwebsite.com The Mortgage Firm ..........................................................................http://www.themortgagefirm.com The Mortgage House, Inc ....................................................................http://www.mortgagehouse.org The Mortgage Lending Group, Inc. ....................................................................http://www.mlgla.com Todays Realty Group & Loan Solutions............................................http://www.lendingandhome.com Total Mortgage Services........................................................................http://www.totalmortgage.com TotalChoice Financial Services......................................................http://www.totalchoicenetwork.com Towne Mortgage Company ................................................................http://www.townemortgage.com Unicor................................http://www.manta.com/c/mmnnfpc/unicor-global-limited?referid=10145 Union National Mortgage Co. ....................http://www.unionnationalmortgage.com/rancho/tdoherty Union Savings Bank ..............................................................https://www.unionsavings.com/page.cfm United Wholesale Mortgage................................................................................http://www.uwm.com Urban Lending Solutions ....................................................................http://www.urban-ls.com/home US Mortgage......................................................................................................http://usmortgage.com USA Mortgage Solution, LLC ..............................................................http://usemortgagesolution.com V.I.P. Mortgage Inc. ....................................................................................http://www.vipmtginc.com VanDyk Mortgage Corporation ........................................................http://www.vandykmortgage.com Vantage Mortgage Group, Inc. ..............................................http://www.VantageMortgageGroup.com Versatile Mortgage L.L.C. ....................................................................http://versatilemortgagellc.com Vitek Mortgage Group ................................................................http://www.vitekmortgagegroup.com Volunteer Mortgage, Inc. ..................................................................http://volunteermortgageinc.com W.J. Bradley Mortgage Capital, LLC ............................................................http://www.wjbradley.com W.J. Bradley Mortgage Capital, LLC - Fresno Branch ......................http://mywjb.com/wjbfresno-team Waukesha State Bank..........................................................................http://www.waukeshabank.com Webster Bank ........................................................................................http://www.websterbank.com West Town Savings Bank ..........................................................http://www.westtownsavingsbank.com Weststar Mortgage ........................................................................http://www.weststarmortgage.com Willow Bend Mortgage Company ..............................................http://www.willowbendmortgage.com Wintrust Mortgage ..................................................................................http://wintrustmortgage.com Zenith Mortgage Advisors, Inc. ............................................................http://www.zenithadvisors.com


FEATURED LISTINGS Company Name: 360 Mortgage Group Website: www.360mtg.com Phone Number: 512-418-6000 or 866-418-2997 Email: hr@360mtg.com

Company Name: Calyx Software Website: www.calyxsoftware.com Phone Number: (800) 362-2599 Email: employment@calyxsoftware.com

Company Bio: Established in 2007, 360 Mortgage Group LLC is a privately owned mortgage bank with a 100 percent focus on third party origination that has successfully utilized its hightechnology platform to provide better communication and customer service to business partners. An approved Fannie Mae seller/servicer and Ginnie Mae Issuer, 360 Mortgage Group is headquartered in Austin, Texas and provides services in 31 states across the country. 360 Mortgage Group is emerging as a leader in refinancing under Home Affordable Refinance Program (HARP) 2.0.

Company Bio: Calyx® is the industry leader in integrated, end-to-end mortgage solutions designed to help close more loans quickly and accurately with one system of record. Positions Available: Mortgage Banking Consultant Locations: Dallas, TX

Positions Available: Account Executives Locations: Nationwide

57 Company Name: Campbell Financial Services, Inc. Website: www.campbellfinancial.com Phone Number: (951) 689-2511 Email: patrick@campbellfinancial.com

Company Bio: American Financial Network Inc. is a direct lender with an experienced staff offering expertise in every area of mortgage lending. We have delegated authority to underwrite and fund FHA, VA, USDA and conventional loan products in-house. But that’s just the beginning of our service. Throughout the lending process, we provide regular loan updates and progress reports so you always know the status of your loan. We also offer a special Mortgage Manager service if you are considering refinancing your mortgage.

Company Bio: Campbell Financial Services, Inc. is a full-service mortgage company serving California homeowners, buyers, sellers and Realtors since 1989. We are a professional firm with experienced staff, and a commitment to providing top-notch service, a strong product knowledge, and a depth of programs & investors. We seek driven team players with professional attire, an excellent attitude, and the willingness to succeed and grow.

Positions Available: Loan Officers, Underwriter, Funder, Processor, Doc Drawer Locations: Corona, Lake Forest, Huntington Beach, La Mirada, Tempe, Las Vegas

Positions Available: We are currently seeking experienced Loan Officers for our Riverside/Corona office. Modern facilities, desk, phone & computer. In-house processor, inhouse DO/DU approvals, along with the support & experience to get your deals closed on time and get you paid. Competitive BPS compensation. Must have NMLS license or be currently enrolled, and must possess strong customer service skills and a positive attitude. Locations: Riverside, CA

Company Name: CBC National Bank Website: www.cbcnationalbank.com Phone Number: (678) 485-3933 Email: gsantiago@cbcnationalbank.com

Company Bio: Founded in 2002, AmeriSave offers competitive salary, good benefits and work-from-home opportunities. AmeriSave is one of the nation’s leading and fastest-growing retail and third party mortgage lenders, closing over $8 billion in 2012 and servicing customers in all 50 states with over 700 employees nationwide. AmeriSave is positioned for growth in the industry by combining expert technology with experienced leadership and unparalleled innovation.

Company Bio: At CBC National Bank, we put our customers first. Since we opened our doors in 1999, our commitment has always been to provide nothing less than an exceptional experience in everything we do. It is because of that unwavering dedication to service and our customers’ resulting loyalty that we remain a thriving regional bank. The experienced banking professionals of CBC National Bank are active members of the community who have a vested interest in the success of its citizens and businesses. We invite you to experience CBC National Bank for yourself, where our dedicated professionals and array of banking conveniences ensure you always come first.

Positions Available: Correspondent Sales Managers (multiple positions) and Wholesale Account Executives (multiple geographies)

Positions Available: DE Underwriters, Loan Officers, Branch opportunities Locations: Atlanta, GA

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Locations: Nationwide opportunities

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

Company Name: AmeriSave Wholesale/Correspondent Website: www.AmeriSaveTPO.com Phone Number: (866) 970-7283 Email: MCompton@AmeriSave.com

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Company Name: American Financial Network, Inc. Website: www.lowerpmt.com Phone Number: (310) 993-9744 Email: ttolibas@afncorp.com


FEATURED LISTINGS Company Name: CMG Financial Website: www.cmgfi.com Phone Number: (925) 498-6647 Email: agallow@cmgfi.com

Company Name: Equity Loans LLC Website: www.equityloansllc.com Phone Number: (877) 255-3554 Email: contact@equityloansllc.com

Company Bio: CMG Financial is a multi-billion dollar lender focused on continuing to expand our national footprint. Our lending channels include Wholesale, Retail, Correspondent and Strategic Field Engagement. Established in 1993, CMG Financial is a privately held nationwide Mortgage Bank, headquartered in San Ramon, CA and lends in 43 states. Our competitive advantages include FNMA/FHLMC Direct Lender, HARP 2.0 Unlimited LTV Authority, top tier pricing and product mix, operational superiority, compliance and regulatory support as well as forward-thinking leadership.

Company Bio: Equity Loans LLC is a leader in the residential mortgage industry whose operations extend to more than 30 states.Headquartered in Atlanta, Ga., Equity Loans provides a full array of lending resources when making Conventional, FHA, VA, Jumbo, Reverse Mortgages and USDA loans. With a dedicated staff of experienced professionals, Equity Loans provides exceptional pricing for thousands of clients annually, without compromising follow through and customer service.

Positions Available: CMG Financial is strategically expanding our origination network. We are currently recruiting NMLS licensed Loan Officers in various locations as well as remote opportunities nationwide!

Positions Available: Underwriters, Underwriting Managers, Funding Managers, Loan Officers, Post Closers Locations: Positions available in all licensed states.

Locations: San Diego, CA, Northern California, Phoenix AZ, St. Louis, MO

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Company Name: Data Facts Inc. Website: www.datafacts.com Phone Number: (800) 264-4110 Email: marketing@datafacts.com Company Bio: Data Facts Inc is a 23 year old company that provides information you trust and rely on to make sound lending, hiring and other business decisions. We work with many banking & mortgage companies and employers nationwide. Our management team has over 100 years of combined industry experience. Data Facts’ CEO is the current NCRA president, and we were awarded the prestigious NAPBS accreditation in 2012. We are committed to offering the best customer service in the industry.

Company Name: First Guaranty Mortgage Corporation Website: www.fgmc.com Email: apeters@fgmc.com Company Bio: Nation GNMA / FNMA Direct Lender in 40+ states offering Retail, Wholesale, and Correspondent. Positions Available: All Sales and Operational Positions in all channels Locations: MD, VA, and Virtual

Positions Available: Marketing Design Manager, Employment Screening Account Executive, Banking Solutions Account Executive, Compliance & Training Manager Locations: Memphis, TN; Nationwide

Company Name: DocMagic, Inc. Website: www.docmagic.com Phone Number: (800) 649-1362 Email: paulg@docmagic.com

Company Name: Gateway Mortgage Group, LLC Website: www.gatewayloan.com Phone Number: (888) 360-3773 Email: AGreatLife@GatewayLoan.com

Company Bio: DocMagic is a leading provider of document preparation, delivery and compliance technologies for the National Mortgage Industry.

Company Bio: Gateway Mortgage Group is one of the nation’s largest, privately held full service mortgage companies. Founded in 2000, Gateway has consistently demonstrated industry leadership and has been recognized for its overall revenue growth and creation of new jobs (INC Magazine, INC 500 List – 2006). We believe in customers for life and everything happens in house; from origination to underwriting, funding, and servicing. Gateway Mortgage Group is a direct issuer with GNMA, a direct seller-servicer with FNMA and is licensed to originate and service mortgage loans in 23 states. With robust lines of business and a strategic eye on the future, Gateway Mortgage Group delivers on its tradition of success and performance. Gateway Mortgage Group, LLC is an equal housing lender. NMLS 7233

Positions Available: Compliance Analyst Locations: Torrance, California

Positions Available: Area and Branch Managers, Loan Originators and Loan Assistants Locations: Any state where Gateway holds a license.


FEATURED LISTINGS Company Name: Guaranteed Home Mortgage Company, Inc. Website: www.joinGHMC.com Phone Number: 888-329-4462 Email: jleblanc@ghmc.com

Company Name: HUNT Mortgage Website: www.huntmortgage.com Phone Number: (716) 633-3700 Email: info@huntmortgage.com

Company Bio: Guaranteed is adding mortgage offices nationwide. Join a lender who invests in YOU! In our 20-year history, we’ve grown to include hundreds of mortgage professionals lending coast-to-coast. Our solid reputation, strategic planning and exponential growth have resulted in Guaranteed being named in Inc.’s 500 list of fastest-growing U.S. companies. Why join Guaranteed? - Wide-ranging products that include FHA, FNMA, FHLMC, VA, USDA, 203K, Reverses and Jumbos - We pay state licensing & training - Immediate marketing and/or infrastructure investment - Aggressive compensation plans and volume bonuses - Sales, marketing, accounting/payroll, IT, training support.

Company Bio: Hunt Mortgage was founded in 1984 as the Devere Capital Corporation. We are a wholly owned subsidiary of Hunt Real Estate Corporation, one of Western New York’s largest real estate firms. Hunt Real Estate Corp. was founded in 1911. It is currently under the leadership of Peter F. Hunt, grandson of the founder. In addition to Hunt Mortgage, Hunt Real Estate Corporation affiliates include: Network Title, Fisher Homes, Realty Club, Realty Express, Hunt Vanner Insurance and Hunt Columbus Era.

Positions Available: Retail branches, bank managers, loan originators

Locations: Buffalo, Rochester, Syracuse, Albany, Arizona, Florida

Positions Available: Mortgage Consultants, Processors, Underwriters, Closers

Locations: 22 states coast-to-coast; headquarters in White Plains, NY

59 Company Name: Integrity Home Loan of Central Florida, Inc. Website: www.inthomeloan.com Phone Number: (407) 688-4122 Email: debra.maxwell@inthomeloan.com

Company Bio: 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.

Company Bio: Integrity Home Loan is a Direct Lender on all residential real estate. We are A+ rated with the Better Business Bureau. Currently, we are licensed in eleven states including AL, CA, CT, FL, GA, MD, MI, NJ, PA, TN, and VA. Integrity Home Loan is Florida’s largest fully integrated privately owned mortgage company, and is the fastest growing direct lender in Florida. We are actively seeking licensed loan originators to assist us in cultivating our realtor purchase business. Experience necessary!

Positions Available: Currently expanding and hiring experienced Wholesale Account Executives nationwide Locations: Nationwide

Positions Available: Currently hiring licensed loan officers & originators with experience in handling realtor purchase business for the mortgage industry. Locations: Lake Mary, Florida; Orlando, Florida; Maitland, Florida; Southfield, Michigan

Company Name: Interthinx Website: jobs-interthinx.icims.com/jobs/intro

Positions Available: Branch Managers

Positions Available: Underwriters, Auditors, Team Leads/Supervisors, Processors.

Locations: AL, TN, FL, GA, TX, NC/SC, MS, LA, KY, CO

Locations: Tempe, AZ, Agoura Hills, CA, Santa Ana, CA, Winston Salem, NC, St. Louis, MO, Austin, TX, Jersey City, NJ, Colorado Springs, CO

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Company Bio: “Hometown Lenders Helps you Grow Your Branch and Skyrocket Your Income!” Our Corporate Recruiting Team puts the producers that you want in your branch and our Marketing Gurus work closely with you to help implement our proven marketing maps in your branch. Our Support Team set the industry standard for branch support, and is headed up by a DE underwriter. Call us today and find out how we can help you grow your branch and skyrocket your income this year!

Company Bio: Interthinx, a Verisk Analytics subsidiary, with more than 20 years of experience, is a leading national provider of comprehensive risk mitigation solutions focusing on mortgage fraud, collateral risk and valuation, regulatory compliance, forensic loan audit services, loss mitigation, and loss forecasting. Winner of multiple awards for technology, Interthinx helps clients reduce risk, increase operational efficiencies, satisfy regulator demands, manage data verification, remain compliant and mitigate loan buybacks. We are experiencing tremendous growth and are looking for qualified, experienced and talented underwriters, auditors and processors to join our world class team.

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

Company Name: Hometown Lenders Website: www.hometownbranch.com Phone Number: 888-606-8066 Email: eric@htlenders.com

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Company Name: HomeBridge Website: www.homebridgewholesale.com Phone Number: 855-729-2885 Email: marketing@homebridge.com


FEATURED LISTINGS Company Name: LENDirect Mortgage, Inc. Website: www.LENDirect.com Phone Number: (860) 829-5363 Email: careers@LENDirect.com Company Bio: LENDirect Mortgage is an industry leader in the Connecticut marketplace. Providing Conventional Fannie Mae/ Freddie Mac, FHA, VA, HARP, and Jumbo loans we have grown with the reputation of being a low rate leader while providing an exceptional customer experience. Our marketplace consists of internet, local print, and a vast local referral network. As a result of this growth, LENDirect Mortgage has an immediate need for experienced originators that are looking to provide the very best for their book of business. LENDirect Mortgage is dedicated to providing you the tools you need to succeed with aggressive compensation plans, program availability, marketing support, extremely low rates and an in house support staff. Take your business to the next level and call us today!

Company Name: New Day USA Website: newdayusa.com Email: jmartin@newdayusa.com Company Bio: NewDay USA is a nationwide VA, FHA and reverse mortgage lender that helps active military personnel, veterans and their families and seniors achieve their financial and housing goals. NewDay operates a builder-correspondent lending division, is the exclusive provider of mortgage lending for VFW members and is among the nation’s top reverse mortgage lenders. NewDay USA University trains new and established professionals and the company is a philanthropic partner of Purple Heart Homes and the National Coalition for Homeless Veterans. Positions Available: Loan Officers, Underwriters, Processors Locations: Fulton, Maryland; Chicago, Illinois; Newark, Delaware

Positions Available: Branch Managers, Sales Managers, Loan Officers, Loan Officer Assistants Locations: Connecticut

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MONTANA MORTGAGE PROFESSIONAL MAGAZINE

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60 Company Name: McLean Mortgage Corporation Website: www.mcleanmortgage.com Phone Number: (301) 440-4261 Email: ttoureau@mcleanmortgage.com

Company Name: OnQ Financial Website: www.onqfinancial.com Phone Number: (303) 221-1386 Email: tom.borrelli@onqfinancial.com

Company Bio: Top 100 independent lender headquartered in the Northern Virginia area. In four years, McLean Mortgage has grown to a $1.5 billion organization because of our focus on production support. Our leaders are former producers and our operations department works as a team to support high levels of customer satisfaction.

Company Bio: On Q is a retail-only independent mortgage banker founded in 2005. Based in Scottsdale, AZ, we currently have 30 offices in AZ, CA, WA, CO, TX, NC, and GA, are approved to lend in a total of 21 states, and are a Fannie Mae approved seller/servicer. We will fund nearly $2 billion in residential mortgages in 2012 and we are seeking experienced mortgage professionals to join us.

Positions Available: Loan Officers and Branch Managers looking to join a leading lender in the Mid-Atlantic region. We look for quality team players who thrive in a culture which is independent with major levels of support — including technology, marketing and training. Great pricing, compensation plans and product lines combined with a team-oriented service culture which gets purchases closed on time. We look for those who want to help grow our tradition of quality in an independent non-bank environment. Contact Troy Toureau. Equal opportunity employer.

Positions Available: Mortgage Consultant Locations: Greater Denver Area

Locations: Virginia, DC, Maryland and North Carolina.

Company Name: Meadowbrook Financial Mortgage Bankers Website: www.mfmbankers.com or mortgagesalesjob.com Phone Number: 800-959-8892 Email: recruiting@mfmbankers.com

Company Name: PB Financial Group Corp Website: www.pbfinancialgrp.com Phone Number: (323) 935-5555 Email: pbroukhim@pbfinancialgrp.com

Company Bio: Meadowbrook is expanding nationally and looking to hire for all positions.

Company Bio: Direct Private Money/Hard Money Lender

Positions Available: Branch Managers, Team Leaders, Mortgage Loan Originators, Processors, Underwriters, Closers, Shipping

Positions Available: Office Assistance/Office Processor Locations: Mid-Wilshire Los Angeles, CA

Locations: Hauppauge, Garden City, NYC NY, Denville NJ, Iselin NJ


FEATURED LISTINGS Company Name: Real Estate Mortgage Network Website: www.remnwholesale.com Phone Number: 866.409.4381 Email: info@remn.com Company Bio: Real Estate Mortgage Network is a national wholesale lender, servicing brokers and bankers across the country.

Company Name: TagQuest Website: www.tagquest.com Phone Number: 888-717-8980 Email: info@tagquest.com

Positions Available: Account Executives, Underwriters

Company Bio: TagQuest is a marketing firm created specifically for the ever changing mortgage industry. We know what it takes to produce quality marketing campaigns and, most importantly, how to turn these campaigns into sales leads that convert to customers.

Locations: Nationwide

Positions Available: Sales and Production Locations: Medford, OR - Seattle, WA

61 Company Name: Residential Home Funding Corp. Website: www.rhfbranch.com Phone Number: 866.319.4442 Email: fkuri@rhfunding.com

Company Bio: TD Bank, America’s Most Convenient Bank® is one of the 10 largest banks in the U.S., with deep roots in the community dating back more than 150 years. The Bank offers a broad array of retail, small business and commercial banking products and services to nearly 8 million customers through its extensive network of nearly 1,315 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. TD Bank operates in 15 states and the District of Columbia. In addition to banking products,TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth® and vehicle financing and dealer commercial services through TD Auto Finance. Positions Available: Loan Officers

Company Name: Titan List & Mailing Service, Inc. Website: www.titanlists.com Phone Number: 800-544-8060 Email: titanlms@bellsouth.net

Company Bio: Silvercreek Finance is a Chicago-based mortgage lender focused on providing efficient financial solutions to loan officers looking to succeed in today’s mortgage industry. Our value proposition is simple: Provide our Loan Officers the tools and support systems they need to help them focus on their clients while being more efficient throughout the loan origination process. Transparent pricing, sales and marketing support, great bonus plan and the opportunity to grow within a company that’s built around you – the loan officer.

Company Bio: What started out as a data list broker in 1999, Titan List and Mailing has evolved into a premier provider of direct mail and data for the mortgage industry. With no maximum capacity restrictions, Titan List and Mailing can accommodate clients of all sizes, from the simple 3,000 piece postcard order to complete drops of over 100,000 pieces in as little as 2 days processing, all handled under one roof.

Positions Available: Silvercreek is currently looking for qualified licensed mortgage loan originators throughout the State of Illinois in various sales positions including Loan Officers, Sr. Loan Officers, Sales Managers and Regional Managers.

Locations: Deerfield Beach, FL

Locations: Open territories throughout the State of Illinois.

Positions Available: Marketing, SEO & Sales

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Company Name: Silvercreek Finance Website: www.silvercreekfinance.com Phone Number: 800-578-1202 Email: support@silvercreekfinance.com

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

Locations: CT, DC, DE, FL, GA, MD, NC, NJ, NY, PA, SC, VA

Locations: DC Market, Florida Market, Massachusetts and Rhode Island, Metro PA, (Greater Philadelphia, Suburban PA, South Jersey), Metro Suburban NY (Long Island, Suburban NY and CT),Northern NE and Upstate NY and South Carolina Market

Positions Available: Branch Managers, Loan Officers, Team Leaders, Processors, Closers, Underwriters

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Company Bio: Residential Home Funding was established in 2000 by former loan officers who together possess more than 50 years of banking experience. In addition, every Residential Home Funding manager has more than 20 years average experience for each of their respective departments of sales, underwriting, closing, secondary, quality control, and accounting services. Residential Home Funding is a direct lender that currently staffs close to 300 employees nationwide. We are one of the fastest growing companies in the and we are licensed in 16 states with 25 licensed branch offices on the east coast. Its Corporate Headquarters is located in White Plains, NY, and its Operational headquarters are located in Parsippany, NJ. We are a HUD direct endorsed lender and have an outstanding rating with the Better business Bureau (BBB).

Company Name: TD Bank Website: www.td.com Email: Britt.goldman@tdbank.com


FEATURED LISTINGS Company Name: Total Mortgage Services, LLC Website: www.totalmortgage.com Phone Number: (203) 707-5712 Email: ahamilton@totalmortgage.com

Company Name: WCS Lending Website: www.wcslending.com Phone Number: (916) 996-1620 Email: sharon.bitz@wcslending.com

Company Bio: For the past fifteen years, Total Mortgage has combined the personal service and integrity of a local lender with the low rates, convenience, speed, and know-how of a national lender. Our mortgage experts work with clients individually to create financing options that make the most sense for them. We are one of the fastest-growing financial services companies in America: Total Mortgage has made Inc. Magazine’s list of the fastest-growing U.S. companies for three consecutive years, from 2009 to 2012.

Company Bio: We are a fortune 5000 company, opened in 2001. We close both retail and wholesale loans. Our headquarters are in Boca Raton, FL, but we are opening a very large fulfillment center in Concord, Ca and looking for all positions. We originate/close conforming, jumbo, government and USDA loans.

Positions Available: Experienced Underwriters - Traditional, FHA DE, VA, Loan Officers, Loan Originators, Sales Assistants (recent college grads), Account Executives, Set Up Associates - Retail and Wholesale, Processors, Processing Assistants, Appraisal Processors, Funders, Closing Associates, Closing Support, Post-Closing / Suspense, Post-Closing / Shipper, Broker Coordinators, Internet Marketing Specialists (recent college grads), Mortgage Banker Trainees , Entry Level Web Developers

Positions Available: Wholesale Account Executives, underwriters, funders, doc drawers, set up/submission specialists, funding asst’s, quality control specialist, CSR’s, HR generalist, I.T. desktop support, receptionist, administrative assistant. Locations: The positions are available in our Concord, Ca location.

Locations: Milford, CT

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MONTANA MORTGAGE PROFESSIONAL MAGAZINE

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62 Company Name: United Mortgage Partners Website: www.umpresmac.com Phone Number: (407) 574-8827 Email: dbiron@resmac.us

Company Name: W.J. Bradley Mortgage Capital, LLC Website: www.wjbradley.com Phone Number: (303) 825-5670 Email: recruting@wjbradley.com

Company Bio: National Lender Looking to add Branches Nationwide n Direct Fannie Mae Seller/Servicer - No Overlays n Direct Endorsed Mortgagee for FHA, VA and USDA n One of the Best Compensation Plans in the Industry n No Company Imposed Caps on Earnings n Full Suite of Products Including HARP 2 with Unlimited LTV n 24 - 48 hour turn times n Branch Coordinator Available for Personalized In-Office Assistance. We’ll Come to Your Location.

Company Bio: W.J. Bradley Mortgage Capital, LLC is a privately held independent mortgage banking firm headquartered in Centennial, Colorado with centralized fulfillment operations in Salt Lake City, Utah. With more than 67 branch locations, located predominantly in the Western region of the United States, the Company is licensed in 20 states and currently operates with more than 1,300 professionals.

Positions Available: Branch Managers, Loan Officers

Positions Available: Loan Officers, Sr. Mortgage Loan Processors, Mortgage Loan Processors, Underwriters, Branch Support Representatives, Doc Prep Specialists, Document Review Specialists, File Room Coordinators, Funding Coordinators, Java Software Developers, Mortgage Funders, Pre-Closing Auditors, VOE Coordinators

Locations: Nationwide

Locations: Colorado, California, Texas, Arizona, Utah, Nevada, Illinois, Washington

Company Name: United Wholesale Mortgage Website: www.uwm.com Phone Number: 800-981-8898 Email: careers@uwm.com

Company Name: XINNIX Website: www.xinnix.com Phone Number: (678) 325-3500 Email: sfederico@xinnix.com

Company Bio: Headquartered in Troy, Michigan, United Wholesale Mortgage (UWM) underwrites and provides closing documentation for residential mortgage loans originated by mortgage brokers, banks, credit unions and correspondents. UWM provides unparalleled service with its deep understanding of the mortgage process using its talented team of account executives, underwriters, closers and funders, who have years of experience with intricate knowledge in wholesale. UWM’s positive teamwork and dedication to exceptional customer service has resulted in continued success and growth that has spawned expansion.

Company Bio: XINNIX is a national sales and leadership training company with a sole focus on the mortgage industry. XINNIX offers web-based instructor led interactive training, self-study courses, live in-branch trainings, keynote speeches, sales and leadership coaching along with accountability and measurement tools. XINNIX serves mortgage companies all over the nation; from the very largest to the individual loan officer. XINNIX assists organizations and individuals in growing and enhancing their business through various mortgage training programs.

Positions Available: Inside Account Executive, Senior Underwriters, Junior Underwriters, Closers

Positions Available: Course Developer, Sales Trainer, Marketing Manager, Operations Assistant, Inside Sales, Outside Sales Locations: Alpharetta, GA

Locations: Troy, Michigan; Remote opportunities available.


360 mortgage group What are the top challenges that mortgage brokers need to be prepared for in 2012 and beyond? Mark: Obviously, we have been in an extended refinance boom, and eventually we are going to see interest rates increase. The Federal Reserve has committed to keeping interest rates low through 2015, although that is always subject to change. When rates do turn around and start to increase to normal levels, mortgage brokers and originators need to be prepared to go back to more traditional marketing. They will need to once again engage in channel marketing through builders and real estate agents and make sure there is a large focus on generating purchase business, as opposed to refinance business. I do want to emphasize that the mortgage broker will remain an integral part of financing the American dream of owning a home. Mortgage brokers that have good relationships operate at the highest standards of integrity, and partner with a wholesale lender like 360 Mortgage will be very successful. I have no doubt that the hyper-local relationships mortgage brokers have in their communities will remain and grow stronger, especially as they adopt best practices and reposition themselves as advocates for borrowers.

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Austin, Texas? Mark: Yes, we do have a centralized operation system, which is very efficient. We are 100 percent paperless and with our technology, it’s unnecessary for us to have underwriters, closers, and funders among others in each regionalized marketplace. We have better efficiency in production by having our operations team centralized. We believe our team is one of the best in the business. What is the breadth of 360 Mortgage’s product offerings? Is the company planning on delivering any new products to the marketplace? Mark: Currently, the bulk of our production is HARP 2.0. However, we also offer government products. We have not seen a tremendous, or even viable, demand for jumbo products in the secondary market, so we are not really participating in that product. We are also offering any and all products offered by Fannie Mae, FHA and VA.

for

By Greg Frost Jr.

A few years ago, I returned to my home state of New Mexico and the Frost Mortgage Headquarters with an idea. This idea was to set an example for our community through fellowship and goodwill towards the people that help protect and serve us. Months later, we started a “Law Enforcement Appreciation” cookout. It began as a little BBQ in our office parking lot to now feeding more than 100 law enforcement officers and support staff at a time, almost twice a month. The result … an appreciative police force and other companies and neighborhood organizations following our example, doing right by the men and woman that keep us safe. A few months ago, my dad (Greg Frost Sr.) my cousin (Chris Frost) and I were sitting in a room looking back on our accomplishment with the “Law Enforcement Appreciation” cookouts and thought … how do we do this for the men and women of our armed forces? How do we show them our appreciation for their duty, diligence and sacrifice for us? The first answer was simple. Make sure every one of our loan officers became Certified Military Housing Specialists through the USA Cares Program (www.usacares.org). This is a phenomenal program run by great people who are passionate about making sure our returning military and veterans can achieve one of the great American dreams, homeownership. The second answer was to reach out and work with our local active military and veteran community. Find out what they needed and how we could help. Through a business partner, we were introduced to the founders of Paws & Stripes (www.pawsandstripes.org). It turns out they have an appreciation for BBQs as well, and I began personally cooking for and catering their graduation ceremonies. From there, Frost Mortgage became an avid supporter of this very important non-profit organization which provides service dogs for wounded military veterans diagnosed with Post-Traumatic Stress Disorder (PTSD).

The final answer was simple … “Zero for Heroes.” Starting in December, Frost Mortgage began an initiative to waive any and all lender closing costs for any veteran or current member of our armed forces. This program now also extends to the heroes of our city, including police officers, firemen, nurses, doctors, paramedics, and last but not least, our teachers. The “Zero for Heroes” program has been well-received in our market thus far and we all know numerous heroes in our respective communities that can benefit from a program such as this. I urge everyone in our industry to go forth and do likewise this year.

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Greg Frost Jr. is director of business development and marketing for the Frost Group of Companies. He may be reached by phone at (505) 615-7195 or email gregfrostjr@gregfrost.com.

MONTANA MORTGAGE PROFESSIONAL MAGAZINE

“The entire staff at Frost Mortgage is dedicated to ensuring that our veteran population receives the utmost care when it comes to purchasing a home. They work tirelessly to make sure that the veteran and their families come first. Purchasing a home is no easy task. Frost Mortgage has made it possible for my family and I to be prospective homeowners. As a disabled veteran who has served my country, I take great pride in working with true Americans. Those who have served their country with honor have a friend in Frost Mortgage.”— Jim Stanek, co-founder, Paws & Stripes (pictured here on the right with his service dog “Sarge” and Greg Frost Jr.)

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What is 360 Mortgage’s current average loan amount and FICO score? Mark: Our current average loan amount is about $208,000 and our FICO score is in excess of 720. There is an abundance of quality borrowers looking to refinance or purchase a home, and we are finding there is a lot of good business to be written. What are 360 Mortgage’s primary Our process is being well received. areas of geographic penetration? For HARP 2.0 loans funded through What are the areas that 360 Mortgage Sept. 30, 2012, the average LTV was will focus on expanding in next? 127 percent, with a FICO of 755 and Mark: We are currently licensed in 31 for the pending pipeline entering the states, and we are continuing to hire fourth quarter of 2012, the average quality individuals within those LTV has increased to 130 percent, states. We have had the longest pres- with a FICO of 738. ence in the Southwest and West up through mountain states, such as On a personal note, how did you get Colorado and Utah. In 2011, we into the mortgage profession and began to expand into the Southeast. what are some of your outside interWe expect to continue attracting ests? higher-quality producers and firm up Mark: I entered the mortgage busiour presence within that region ness in 1992. I had been in the techbefore moving up the Eastern nology sales arena, and a very good seaboard. The states we currently do friend of mine was doing very well in business in are Alabama, Arizona, the mortgage industry as a result of California, Colorado, Florida, the early 1990s refinance boom, so I Georgia, Idaho, Illinois, Indiana, decided to get into that same indusKansas, Kentucky, Louisiana, try. I then became one of the top Maryland, Michigan, Minnesota, salespeople for the company I worked Missouri, Nevada, New Mexico, North for. In 1995, I opened my own mortCarolina, Ohio, Oklahoma, Oregon, gage brokerage company and built South Carolina, Tennessee, Texas, that company over the course of the Utah, Virginia, Washington, next fifteen years, becoming a regionWisconsin, Wyoming and the District al retail mortgage banker. In 2007, of Columbia. Our goal is to enter new with the collapse of the industry, I states on a selective and strategic saw the opportunity to grow a combasis and become a nationwide pany and fill a void that was in the wholesale lender in a responsible marketplace, and went out and raised and reasonable manner. capital. That company is now 360 Mortgage Group. Tell us about your operational infraMy outside interests are hunting structure. Do you have one central- and fishing and I also enjoy sports ized wholesale operations center in and outdoor events.

Zero Heroes


Accounting and Audit

Mark Wilson Certified Public Accountants 9455 Ridgehaven Ct, Suite 101 • San Diego, CA 92123 619-649-0712 www.markwilsoncpa.com A full service CPA firm specializing in the needs of the mortgage industry. Providing monthly bookkeeping services,FHA and financial statement audits , corporate tax preparation and contract CFO services. Contact us today to learn more.

Bonds & Licensing

Branch Manager

The Bond Exchange www.bondedwithnamb.org (501) 224-8895

Hometown Lenders (888) 606-8066 moreinfo@htlenders.com www.hometownbranch.com

LOWEST-COST STATE MORTGAGE LICENSE BONDS Support NAMB in supporting you!

"WE HELP YOU GROW YOUR BRANCH AND SKYROCKET YOUR INCOME!"

Online surety bond applications, instant underwriting approval, and credit card payments administered through The Bond Exchange NAMB's exclusive partner provider for state license surety bonds.

Appraisal Management Company

The Bond Exchange is a national surety agency specializing in servicing mortgage license bonds for thousands of mortgage professionals across the country. Low prices and fantastic service. You really can have them both at the same time!

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StreetLinks Lender Solutions (800) 778-4920 www.streetlinks.com sales@streetlinks.com

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StreetLinks Lender Solutions provides an innovative and comprehensive suite of valuation and service solutions used by lenders, servicers and appraisers nationwide to improve everyday business operations.

Branch Manager

America’s Choice Home Loans www.achlonline.com 713-821-9750

Meadowbrook is an FHA, Fannie Mae, Freddie Mac, and VA endorsed lender.

Finally - the freedom to originate! America's Choice gives you the tools you need so you can Originate, Close and Get Paid!

United States Appraisals World-Class Service. Nationwide Coverage. Discover Confidence in Your Appraisal Partner! www.UnitedStatesAppraisals.com | (866) 562-0123

We work as hard as you to be America’s Choice for consumers needing a home loan, and we work just as hard to be America’s Choice for top branch managers, loan originators and mortgage professionals.

United States Appraisals combines nationwide coverage with personalized, world-class service. From fast turn-times to rigorous quality assurance and delivery guarantees, we bring much needed confidence to the valuation process. Fast Turn Times – We guarantee it! Underwriter-Ready reports – the first time! 100% Compliance with all regulations and guidelines Customary and Reasonable Fees and a weekly pay cycle Cutting-Edge Technology provides real time reporting and full integration for a seamless business process Call us at (866) 562-0123 for a free consultation. Or visit www.UnitedStatesAppraisals.com to learn more.

Call 516-409-5555, ext 4, to register your company.

Are you a mortgage origination professional? Are you exceptional? Is your company? MO

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Branch Opportunities

Call Jonathan Fowler, Director of National Production at 713-821-9750 to learn how you can have a better, more rewarding career.

NATIONAL

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Meadowbrook is hiring Branch Managers and Loan Originators. We are licensed in NY, CT, PA, NJ, MD, FL, MA, NC, pending in SC, NH, and RI.

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Meadowbrook Financial Mortgage Bankers 1-888-MEADOW8 (632-3698) www.mortgagesalesjob.com Meadowbrook loan originators make 33% more money with Meadowbrook than with any other company they worked for. Enjoy the benefits of a low compare ratio, a lead management system with an endless supply of leads, A tier investors, and much more.

StreetLinks industry-leading products include LenderPlus™ full-service appraisal management, LenderX™ lender-executed appraisal management software and SCORe™ appraisal reviews and a series of valuation analysis tools for services. Our commitment to quality and service, embodied by our partnership approach to clients and appraisers, continues to set us apart as the nation’s premier lending solutions partner. For more information, visit www.streetlinks.com.

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We fund your start-up costs Corporate Recruiting Team that puts producers in your branch Direct Connection with the branch managers who are crushing it Proven "Marketing Maps" that will double your business "Next Level Support" to help keep you growing Get a BPS payback from our volume incentive, or build a margin for yourself into your rate! Full capability to control your loan officers' pricing. Create, Customize and Optimize your branch's compensation plan. Full Eagle Lender and In-House Underwriting, Closing and Fundings Currently looking for high-quality producers in: TX, CO, NC, SC, NJ, OH, GA, AL, TN, FL, MS, LA, KY

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If your ad was here, you would be seen by 191,181 Mortgage Professionals looking for resources to help them in their business.

Gateway Mortgage Group has immediate opportunities in 16 states. Our origination teams enjoy: • A local branch- and origination-centric model • The perfect balance of corporate support • Competitive compensation plans And best of all, our entire platform is built with one thing in mind— helping local originators take their success to the next level. Visit our careers page on LinkedIn. Follow us. Or call us at 888.360.3773. And we will show you YOUR Gateway to a Great Way of Life™! Gateway Mortgage Group, LLC is an equal opportunity employer. NMLS 7233 HQ: 6910 E. 14th Street, Tulsa, OK 74112


Branch Opportunities (Cont’d.)

It’s Time‌to join one of the Top Mortgage Bankers as Branch Managers or Loan Officer NOW! Why? You Have Our Guarantee! Our Guarantee We will not leave you stranded and alone on an island.  Our seasoned operational rollout team will ensure you a smooth transition to our branch platform. Our RHF University will train everyone on your staff. We stand by our reputation of providing ongoing support and communication to every branch , every day. You’re our #1 Priority! We are a Full-Service Banker, a Direct Endorsed FHA and Fannie Lender.  We are a TRUE 48 hours in Underwriting and Closing. We will close your loans on time.  We will give the best service to you and your clients We will give you full access to all marketing and development services from loan origination to hiring to specialty products. We are the Leader in marketing, technology and strategic business partnerships. We assist our Branch Managers in hiring, training and motivating their staff. We will help you build your team. CALL NOW 866-319-4442 or EMAIL fkuri@rhfunding.com or VISIT  www.rhfbranch.com

Compliance Consultants

Continuing Education (Cont’d.)

BROKERS COMPLIANCE GROUP 167 West Hudson Street – Suite 200 Long Beach | NY | 11561 members@brokerscompliancegroup.com www.BrokersComplianceGroup.com

Mortgage Seminars MortgageSeminars.com 248-403-8181

Division of Lenders Compliance Group, BCG is the first and only mortgage risk management firm in the U.S. devoted to supporting the unique compliance needs of residential mortgage brokers. Leveling the Playing Field for Mortgage Brokers Low Cost Monthly Membership Includes: • Free Weekly Hotline • Access to Subject Matter Experts • Policies and Procedures • Webinars *Special Pricing* • Quality Control • Exam Readiness • Licensing • Legal Reviews

Jeff Mifsud, a former FHA Direct Endorsed Underwriter trained by HUD and an FHA Originator for over 15 years, is publisher of The FHA Originator, a monthly marketing newsletter which gives you‌ • • • •

FHA guideline news to keep you updated FHA Marketing tips and downloads that are easily customized Personal development tips to help you develop your character Full access to all previous FHA marketing downloads!

No contracts so sign up today and give yourself the tools to brand yourself as The FHA Expert in your marketplace. Cost: Only $19.95 per month per physical office location. Watch for our 8 Hour NMLS Continuing Education Course

Credit Reporting

Branch Recruitment LENDERS COMPLIANCE GROUP 167 West Hudson Street - Suite 200 Long Beach | NY | 11561 | (516) 442-3456 www.LendersComplianceGroup.com Guaranteed Home Mortgage Company, Inc. Headquarters: 108 Corporate Park Drive Ste. 301 White Plains, NY 10604 (888) 329-GHMC | Recruitment@GHMC.com

The first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance. Pioneers in outsourcing solutions for mortgage compliance. Our Compliance Team Will: 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.

Coaching

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. 

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NMLS approved 20 hour Prelicensing Education NMLS approved Continuing Education Live Classroom Instruction, Web Delivery and Private Events The SAFE-Smart ExamCram, Powerfully Innovative Test Prep

“A Full Service Lending Information Companyâ€? A/E: Jeremy “Judgeâ€? Honor 877-MFI- DATA Jeremy@MďŹ CreditSolutions.com www.MďŹ CreditSolutions.com Credit reports • Rapid rescore • Reissue • Supplements IRS & Social verification • VOE / VOI • Title • Flood Appraisals / BPO / AVM • Fraud alerts • Red Flag • LQI MOST AGGRESSIVE PRICING!

The Lykken on Lending Radio Program Sign-on weekly at nmpmag.com/lykkenonlending

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Abacus Mortgage Training and Education PO Box 780 Summerfield, NC 27358 888-341-7767 • www.GetYourEd.com

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Continuing Education

NationalMortgageProfessional.com v

Immediate investment in your business. We pay licensing, initial marketing, more. Next Day Pay™. Total support. Easy transition. Full suite in-house products. Mortgage banker & top-level broker 28 states|20+ years|On Inc.500 list of fastest-growing companies

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Direct Mail

TagQuest www.myharpleads.com TagQuest.com 888-717-8980 TagQuest is a full service marketing firm created specifically for the ever changing mortgage business. We have tested and proven campaigns for FHA -VA - HARP - CONVENTIONAL loan types. TagQuest knows what it takes to generate quality leads whether through direct mail marketing, telemarketing, internet leads, data lists, tracking systems, or any combination thereof. TagQuest will brand your company, prepare targeted marketing campaigns that generate interest in your company, and most importantly, show you how to turn sales leads into repeat customers.

Document Preparation

Loan Origination Systems

Robertson | Anschutz 800-343-7160 sbertrand@radocs.com www.radocs.com/info.html

Calyx Software 800-362-2599 sales@calyxsoftware.com www.calyxsoftware.com

Mortgage Loan Closing Document Preparation & Compliance Services Fulfillment Services Including Pre-Funding Review & Post-Closing Interfaces with Leading Loan Origination Software Systems Foreclosure – Loss Mitigation Services

Document Preparation (SaaS)

Docs on Demand 800-343-7160 stephen.bertrand@docsondemand.net www.docsondemand.info Mortgage Loan Closing Document Preparation & Compliance Software Loan Documents and Compliance – Web-based/SaaS – Easy to Use Intuitive – Secure and Reliable – Integrates with Leading LOS Free Setup and Support – Extensive Compliance Audits

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Titan List & Mailing Services, Inc. 1020 NW 6th St Suite D, Deerfield Beach, FL. 33442 (800) 544-8060 www.TitanLists.com

Employment Services

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.

Calyx Software, the #1 provider of mortgage solutions is dedicated to offering reliable and affordable software that streamlines, integrates and optimizes the loan process. Find out how PointCentral can streamline your business and create compliant processes today.

Marketing Services

8520 Macon Rd. Ste 2 Cordova, TN 38018 info@mcmf.net | 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. My Guide is offered in traditional magazine print, as well as our newest electronic flipbook version, bringing “flipping through a magazine” experience right to your desktop Contact me today to learn more about this one of a kind opportunity!

Recruitment

If your ad was here, you would be seen by 191,181 Mortgage Professionals looking for resources to help them in their business. The Resource Registry is a directory of lenders (wholesaler or retail that are recruiting), affiliated services and resources that is seen by more than 191,181 active Professionals.

Call 516-409-5555 ext. 4 to register your company.

Leads TagQuest ................................................................888-817-8980 CUSTOMIZE YOUR CAMPAIGNS! FHA - HARP - VA Leads, Loan Modification, Debt Consolidation, Direct Mail, Data List, Live Transfers, Internet Leads – tagquest.com


Valuation Services

Veros Real Estate Solutions 2333 North Broadway, Suite 350 • Santa Ana, CA 92706 (866) 458-3767 www.veros.com • @verosres (Twitter) Veros Real Estate Solutions is a premier technology leader in the mortgage industry and proven leader in enterprise risk management and collateral valuation services. Veros combines the power of predictive technology and data analytics for advanced automated solutions.

Wholesale/FHA

Wholesale Lenders (Cont’d.)

Wholesale/Residential

Real Estate Mortgage Network, Inc. www.remnwholesale.com 866-933-6342

CBC National Bank 3010 Royal Boulevard South, Ste. 230 Alpharetta, GA 30022 888-486-4304

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.

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.

Interested in joining our Wholesale Division? Send your resume to aerecruiting@remn.com

We are hiring Loan officers in the Southeast. GA, FL, AL, TN, NC,SC. Contact Gabe Santiago our Corporate Recruiter at gsantiago@cbcnationalbank.com for further details. Big Enough to MATTER…Small Enough to CARE

Icon Residential Lenders (888) 247-4207 www.iconwholesale.com Icon Residential, a wholly owned subsidiary of Grand Bank N.A., is one of the nation’s leading Conforming, FHA and VA wholesale lenders. Our strength, success and longevity is derived from delivering customers service that exceeds our valued business partners expectations. With deep industry knowledge, financial stability and innovative technology we provide the solutions for our business partners to fund loans while avoiding risk. • • • • •

Direct Access to Underwriters Competitive Pricing Innovative Technology Paperless Solution Bank Funding

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United Wholesale Mortgage 800-981-8898 www.uwm.com

Wholesale Lenders

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.

The Lykken on Lending

The Resource Registry is a directory of lenders (wholesaler or retail that are recruiting), affiliated services and resources that is seen by more than 191,181 active Professionals.

Sign-on weekly at

Call 516-409-5555, ext. 4

nmpmag.com/lykkenonlending

to register your company.

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

HomeBridge 5 Park Plaza, 10th Floor Irvine, CA 92614 www.homebridgewholesale.com

Mortgage Professional Resource Registry

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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!


calendar

NATIONAL MORTGAGE PROFESSIONAL

OF EVENTS

To submit your entry for inclusion in the National Mortgage Professional contact information, to newsroom@nmpmediacorp.com.

Tuesday-Thursday, February 12-14 Texas Mortgage Bankers Association Annual Southern Secondary Marketing Conference “Connections Focused on Your Future” Marriott Woodlands Waterway Hotel & Convention Center 1601 Lake Robbins Drive The Woodlands, Texas For more information, call (512) 480-8622 or visit TexasMBA.org.

Sunday-Tuesday, March 10-12 2013 NAMB Legislative & Regulatory Conference Washington, D.C. For more information, call (972) 758-1151 or visit NAMB.org.

Tuesday-Friday, February 19-22 Mortgage Bankers Association (MBA) 2013 National Mortgage Servicing Conference & Expo Gaylord Texan Hotel & Convention Center 1501 Gaylord Trail Grapevine, Texas For more information, call (800) 793-6222 or visit MortgageBankers.org. Thursday-Saturday, February 21-23 Mortgage Bankers Association (MBA) National Short Sale and REO Summit 2013 Gaylord Texan Hotel & Convention Center 1501 Gaylord Trail Grapevine, Texas For more information, call (800) 793-6222 or visit MortgageBankers.org.

Sunday-Thursday, March 10-14 30th Anniversary … 2013 Regional Conference of Mortgage Bankers Associations Trump Taj Mahal Casino Resort 1000 Boardwalk Atlantic City, N.J. For more information, call (732) 596-1619 or visit MBANJ.com.

Sunday-Wednesday, April 14-17 Mortgage Bankers Association (MBA) 2013 National Fraud Issues Conference Westin Diplomat 3555 South Ocean Drive Hollywood, Fla. For more information, call (800) 793-6222 or visit MortgageBankers.org. MAY 2013 Sunday-Wednesday, May 5-8 Mortgage Bankers Association (MBA) 2013 National Secondary Market Conference & Expo New York Marriott Marquis 1535 Broadway New York, N.Y. For more information, call (800) 793-6222 or visit MortgageBankers.org.

Wednesday, March 13 Florida Association of Mortgage Professionals Broward Chapter 2013 Annual Trade Show “It’s Mardi Gras Time” Broward County Convention Center 1950 Eisenhower Boulevard Fort Lauderdale, Fla. For more information, call (954) 205-0022 or visit www.browardfamp.org.

Sunday-Wednesday, May 19-22 Mortgage Bankers Association (MBA) 2013 Commercial/Multifamily Servicing & Technology Conference Arizona Biltmore 2400 East Missouri Avenue Phoenix, Ariz. For more information, call (800) 793-6222 or visit MortgageBankers.org.

Wednesday, March 13 2013 Maryland Association of Mortgage Professionals Annual Conference Maritime Institute 692 Maritime Boulevard Linthicum Heights, Md. For more information, call (410) 752-6262 or visit www.mdmtgpros.org.

Sunday-Wednesday, May 19-22 Mortgage Bankers Association (MBA) 2013 Legal Issues/Regulatory Compliance Conference Boca Raton Hotel 501 East Camino Real Boca Raton, Fla. For more information, call (800) 793-6222 or visit MortgageBankers.org.

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MARCH 2013 Wednesday-Saturday, March 6-9 Mortgage Bankers Association (MBA) 2013 Mid-Winter Housing Finance Conference The Ritz-Carlton Bachelor Gulch 130 Daybreak Ridge • Avon, Colo. For more information, call (800) 793-6222 or visit MortgageBankers.org.

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FEBRUARY 2013 Sunday-Wednesday, February 3-6 2013 CREF/Multifamily Housing Convention & Expo Manchester Grand Hyatt San Diego 1 Market Place San Diego, Calif. For more information, call (800) 793-6222 or visit MortgageBankers.org.

APRIL 2013 Sunday-Wednesday, April 14-17 2013 National Technology in Mortgage Banking Conference & Expo Westin Diplomat 3555 South Ocean Drive Hollywood, Fla. For more information, call (800) 793-6222 or visit MortgageBankers.org.

NATIONAL

Calendar of Events, please e-mail the details of your event, along with

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