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NEW MEXICO EDITION

New Mexico Association of Mortgage Professionals P.O. Box 3967 v Albuquerque, NM 87190 Phone #: (505) 480-8514 v Fax #: (505) 994-0658 Web site: http://www.nmamp.org OFFICERS Phone #

E-mail

Dan Gutierrez

President

(505) 463-5101

daniel.gutierrez@gmos.us

Melvin Vallejos

President-Elect

(866) 826-1334

melvin.vallejos@swmc.com

Nancy Archuleta

Vice President

(505) 822-8055

narchuleta@melbournefin.com

Dennis Blomberg

Treasurer

(505) 263-5605

family_homes@yahoo.com

Vacant

Secretary

Heidi Snow

Immediate Past

(505) 888-9500

hsnow@perennial-mortgage.com

President

DIRECTORS Gina Bell

(505) 323-0724

gina@accessfundinginc.com

Ron Blessey

(505) 986-9080

ron@ronblessey.com

Steve Cecco

(505) 349-8533

scecco@castlecooke.com

Eric Chavez

(505) 884-4797

eric@loanlogic.co

Danny Martin

(505) 299-1550

danny@pinnaclecapitalnm.com

Chris Napier

(505) 717-1135

cnapier@affiliatedbank.com

Shawn Stringfellow

(505) 217-1501

sstringfellow@ulc.com

STAFF Theresa Castellano

Executive Director

(505) 480-8514

executive-director@nmamp.org

Daryl Custer

Webmaster

(505) 228-4444

dcuster@superiormortgage-nm.com

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Diversity and Inclusion

table o N A T I O N A L

10 Diversity and Inclusion By Jonathan Foxx

J A N U A R Y

24 Lykken on Leadership: Creating a Winning Culture ... Character By David Lykken

2 0 1 4

M O R T

l

V O

A SPECIAL FOCUS ON “MORTGAGE INDUSTRY EMPLOYMENT” 2014: The Year of Mortgage Originator Free Agency By Drew Waterhouse ..............................................................54 Corporate Culture: Why It Should Matter When Selecting a Mortgage Bank By Chris Jones ........................56 Future Success Begins With the Mirror By Brian Koss ......58 How to Ensure Lasting Partnerships When Hiring Branch Managers By Criste Linkletter ..................................60 The Rules of Attraction: Making the Right Moves in Mortgage Industry Hiring By Marisa D’Vari ..........62

45 NMP’s Inside Look: Ridgewood Savings Bank ... Mortgage Lending Done the Right Way!

Culture is Everything for Employee Retention By Casey Fleming ..................................................................63 Happy and Healthy Employees By Kerry W. Elam ................64

FEATURES Perfecting Your Inbound Marketing Pitch By K. Justin Restaino ................................................................8 The Elite Performer: Formulate Fourteen By Andy W. Harris, CRMS ..........................................................8 Marketing Compliance Corner: FFIEC Social Media Guidelines By Michael J. Wallace Esq. ..........................16

46 NMP Mortgage Professional of the Month: Pam Marron, Senior Loan Officer, Bankers Mortgage of Pasco County By Robert Ottone

Keeping Pace With Changing State Rules: No Easy Task for AMCs By Vladimir Bien-Aime ....................18 NAMB Perspective ..........................................................20 HUD Issues Final Rule on Qualified Mortgages By Melanie A. Feliciano Esq. ....................................................26

V I S I T Company

Web Site

O U R

A Page

AllRegs.............................................................. www.allregs.com ..........................................................58 American Financial Resources Inc........................ www.afrwholesale.com/wd ......................Inside Back Cover Appraisal Nation, LLC ........................................ www.appraisal-nation.com ..............................................3 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................31 CallFurst.com ...................................................... www.callfurst.com ............................................................61 Calyx Software .................................................. www.calyxsoftware.com ................................................25 CAMP ................................................................ www.thecampsite.org ....................................................54 Continental Home Loans, Inc. ............................ www.continentalhomeloans.com ......................................5

66 2014 Who’s Hiring Report

Document Systems, Inc./DocMagic ...................... www.docmagic.com ......................................................37 Easy Mortgage Apps............................................ www.easymortgageapps.com ..........................................60 Emerald Creek Capital ........................................ www.emeraldcreekcapital.com ......................................17 First Guaranty Mortgage Corp. ............................ www.fgmcwholesale.com ..............................................35 Global DMS........................................................ www.amcmatch.com ......................................................11 GSF Mortgage Corp. ............................................ www.gsfsales.com ..........................................................7 Hometown Lenders ............................................ www.whotookmybacon.com ..........................................13 Lend.com .......................................................... www.lend.com ..............................................................57 Lykken On Lending ............................................ www.lykkenonlending.com ............................................65


f contents

T G A G E

L U M E

P R O F E S S I O N A L

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Mo’ Money By Eric Weinstein ................................................27 Tales From the Closing Table By Andrew Liput....................28 NMP’s Economic Commentary: Can House Prices Continue Rising? By Dave Hershman ........................30 Where Are Interest Rates Headed in 2014? By Robert Ottone ..................................................................32 Customer Satisfaction Still Drives the Industry By Phil Hall............................................................................34 NAPMW Report: January 2014 … Which Are You? By Mary Ellen Heathcote, MML, CMI, CME ..................................36 Marketing in the Shadow of Rising Interest Rates ........38 Brokers Being Sued for Buybacks By Rocke Andrews, CMC, CRMS ..............................................39 The Long & Short: The Business of Short Sales By Pam Marron ......................................................................42 Big, Small … We Need ‘Em All! By Eric Wiley ......................44 Seizing Opportunities in the Mortgage Industry and the Missteps to Avoid By Mike Lewis ..........................48 Housing as an Investment? By Ryan W. Birtel ......................50

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Massachusetts Housing Finance Agency Publishes Content With AllRegs By Krista K. Sabol ..............52

COLUMNS New to Market................................................................12 NMP News Flash: January 2014 ....................................14 Heard on the Street ......................................................22 NMP Resource Registry ................................................76

D V E R T I S E R S Company

Web Site

Page

Maverick Funding Corp....................................... www.maverickbranch.com ............................................23 MBA-NJ/NJAMB .................................................. www.mbanj.com ..........................................................29 Menlo Park Funding .......................................... www.mpfunding.com ....................................................15 NAPMW ............................................................ www.napmw.org ..........................................................43 New Penn Financial, LLC .................................... www.gonewpenn.com ....................................................55 PB Financial Group Corp..................................... www.pbfinancialgrp.com ..............................................64 Prime National Credit Repair .............................. www.primenational.com ................................................56 REMN (Real Estate Mortgage Network) ................ www.remnwholesale.com/birthday ........................40 & 41 Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................59 Rushmore Loan Management Services LLC............ www.rushmorehl.com ......................................................9 Streetlinks LLC .................................................. www.streetlinks.com ..............................Inside Front Cover TagQuest .......................................................... www.tagquest.com ........................................................33 The Bond Exchange............................................ www.thebondexchange.com ..........................................39 Titan List & Mailing Services, Inc. ........................ www.titanlists.com ........................................................19 UNMB Wholesale................................................ www.unmbwholesale.com ................................................1 United Wholesale Mortgage ................................ www.uwm.com ................................................Back Cover Warehouse Lending Group .................................. www.warehouselendinggroup.com ..................................49

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NMP Calendar of Events ................................................80

NationalMortgageProfessional.com

Banker to Broker (Part II) By Andy W. Harris, CRMS ..............53


JANUARY 2014 Volume 6 • Number 1

FROM THE

Welcome to the year 2014, a year that promises new beginnings for the mortgage industry with a whole new set of acronyms launching courtesy of a pretty hot button acronym in and of itself, the CFPB (Consumer Financial Protection Bureau). QM (the qualified mortgage), QRM the qualified residential mortgage), and ATR (ability-to-repay) are just a few of the acronyms causing today’s mortgage professionals a bit of stress to begin the new year. Suffice it to say, things will change in 2014, but the true mortgage professional will face these changes with a positive attitude of how to work within the framework of the new regulatory requirements versus simply sitting back and complaining about it! This month, we focus on mortgage industry employment and find out just who in the industry is hiring. There is no question that the transition from a refi-based business to a purchase market, that origination volume is down. That doesn't mean that success is not possible. I have spoken to dozens of LOs across the nation who maintained a healthy mix of refi/purchase originations and continue to succeed in this new purchase market. Companies and LOs who failed to prepare for this transition and relied too heavily on refis have either left the industry or are struggling to survive. For the consummate mortgage professional with established spheres of influence and networking skills, the ability to thrive in the current environment could not offer them a better opportunity. The companies highlighted in this edition are hiring and are thriving. They are looking for veterans of the industry to join their teams. Media reports are rampant, reporting that the big banks are laying off thousands over the past few months as they trim their mortgage origination operations. These same reports provide a bright future for smaller mortgage bankers and mortgage brokers. With more than 500 companies posting job opportunities in the “Who’s Hiring” section of this edition (see page 66), it validates that our industry is alive and well. Good luck job hunting if you are! As I've written in this column over the past few months, the C-word in the mortgage industry has been the buzz word for 2013 and continues for 2014. That C-word is "Compliance.” I’ve repeatedly said the cost of compliance may be expensive, but the cost of non-compliance can be far greater. The NAMB—the Association of Mortgage Professionals has announced its 2014 Legislative & Regulatory Conference (see page 21) in Washington, D.C. for Sunday-Tuesday, March 2-4. The Conference opens Sunday with a Compliance Symposium presented by the experts from Brokers Compliance Group and Lenders Compliance Group. Their four hours of presentations covering Policies and Procedures, Regulator's Examination and Making Compliance Part of Your Business Model is an invaluable resource for the attendees. Invited to speak at this conference are CFPB Director Richard Cordray and Raj Date first ever director of the CFPB. Only NAMB members can attend this conference. Register early since there will be space limitations. If you are not a member of NAMB, please visit www.NAMB.org and join. Memberships start as low as $50. Also when on NAMB.org, visit your state affiliate on the map on the NAMB home page and join to get active in your local NAMB state affiliate as well. That's it for this month. Keep focused and remain professional, and remember, always continue to think positive! Sincerely, Joel M. Berman, Publisher-CEO NMP Media Corp. • joel@nmpmediacorp.com

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

Joey Arendt Art Director (516) 409-5555, ext. 307 joeya@nmpmediacorp.com

Beverly Bolnick National Sales Manager (516) 409-5555, ext. 316 beverlyk@nmpmediacorp.com

Scott Koondel Operations Manager (516) 409-5555, ext. 324 scottk@nmpmediacorp.com

Robert Peter Ottone Executive Editor (516) 409-5555, ext. 314 robertpo@nmpmediacorp.com

David J. Coster Senior Editor davidc@nmpmediacorp.com

Francine Miller Advertising Coordinator (516) 409-5555, ext. 301 francinem@nmpmediacorp.com

Phil Hall Senior Editor philh@nmpmediacorp.com

Brian Coleman Business Development Coordinator (516) 409-5555, ext. 311 brianc@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.

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publisher’s desk

Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA, and other state mortgage trade associations. National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in NMP Media Corp. publications. National Mortgage Professional Magazine and NMP Media Corp. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.

National Mortgage Professional Magazine is published monthly by NMP Media Corp. • Copyright © 2014 NMP Media Corp.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

EDITORIAL CONTRIBUTORS Featured Editorial Contributors Rocke Andrews, CMC, CRMS

David Lykken

Kerry W. Elam

Mike Lewis

Drew Waterhouse

Pam Marron

Melanie A. Feliciano Esq.

Criste Linkletter

Eric Weinstein

Robert Ottone

Casey Fleming

Andrew Liput

Eric Wiley

Mary Ellen Heathcote, MML, CMI, CME

K. Justin Restaino

Chris Jones

Krista K. Sabol

Brian Koss

Michael J. Wallace Esq.

Jonathan Foxx

Donald J. Frommeyer, CRMS

Phil Hall

Editorial Contributors Vladimir Bien-Aimé

Andy W. Harris, CRMS

Ryan W. Birtel

Dave Hershman

Marisa D’Vari


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n New Mexico Mortgage Professional Magazine n JANUARY 2014


NAMB The Association of Mortgage Professionals

National Association of Professional Mortgage Women

2701 West 15th Street, Suite 536 l Plano, TX 75075 Phone: (972) 758-1151 l Fax: (530) 484-2906 Web site: www.namb.org

2013-2014 NAPMW National Board of Directors and Administration President Jill Kinsman (206) 344-7827 president@napmw.org

Vice President (Western Region) Anna Mackovska (323) 331-2222 anna.napmw@gmail.com

Donald J. Frommeyer, CRMS (t/e 2014)—President Amtrust Mortgage Funding Inc. 200 Medical Drive, Suite D l Carmel, IN 46032 Phone: (317) 575-4355 l Fax: (317) 575-4360 E-mail: dfrommeyer@amtrust.net

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

Secretary Cynthia Nutter (360) 449-6408 cynthia.nutter@fnf.com

John Councilman, CMC, CRMS (t/e 2014) President-Elect AMC Mortgage Corporation 10136 Avalon Lake Circle l Fort Myers, FL 33913 Phone: (239) 267-2400 l E-mail: jlc@amcmortgage.com

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

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

Rocke Andrews, CMC, CRMS (t/e 2014)—Vice President Lending Arizona LLC 1996 North Kolb l Tucson, AZ 85715 Phone: (520) 886-7283 l Fax: (520) 731-3388 E-mail: randrews@lendingarizona.net

Vice President (Eastern Region) Kimberly Rozell, CME (607) 229-5008 kimrozellnapmw@gmail.com

Parliamentarian Dawn Adams, GML, CMI (607) 329-4622 dawnvadams@live.com

Kay A. Cleland, CMC, CRMS (t/e 2014)—Secretary KC Mortgage LLC 200 South Wilcox Street, #224 l Castle Rock, CO 80104 Office: (720) 810-4917 l Cell: (720) 670-0124 E-mail: kay@kcmortgagecolorado.com

Vice President (Northwestern Region) Ken Perry, CMI, CME (360) 936-3010 kenapmw@gmail.com

Administrator Hulene Works (800) 827-3034 hulene01@verizon.net

NAMB 2013-2014 Board of Directors OFFICERS

Andy W. Harris, CRMS (t/e 2014)—Treasurer Vantage Mortgage Group Inc 15962 SW Boones Ferry Road, Suite 100 l Lake Oswego, OR 97035 Direct: (503) 496-0431, ext. 302 l Cell: (503) 880-2427 E-mail: aharris@vantagemortgagegroup.com

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

Jim Pair, CMC (t/e 2014)—Immediate Past President Mortgage America Corpus Christi Inc. 22800 Bulverde Road, Apt. 1402 l San Antonio, TX 78261 Phone: (361) 774-7314 l E-mail: jlpair@aol.com

National Consumer Reporting Association 701 East Irving Park Road, Suite 306 l Roselle, IL 60172 Phone: (630) 539-1525 l Fax: (630) 539-1526 Web site: www.ncrainc.org

2013-2014 Board of Directors & Staff Maureen Devine President (413) 736-4511 mdevine@strategicinfo.com

William Bower Resident Screening Committee Liaison (888) 316-4242 wbower@cicreports.com

Mike Brown Vice President/Treasurer (801) 925-6691, ext. 3777 mike.brown@ncogroup.com

Judy Ryan Strategic Alliance Committee Chair (410) 747-9551 judy.ryan@creditplus.com

Daphne Large Ex-Officio (901) 259-5105 daphnel@datafacts.com

Sharon Bieszk Director (262) 542-1700 sbieszk@wititle.com

Nancy Fedich Conference Committee Chair (908) 813-8555, ext. 3010 nancy@cisinfo.net

Mary Campbell Director (701) 239-9977 mary@advantagecreditbureau.com

Rick Bettencourt, CRMS (t/e 2014) Mortgage Network 300 Rosewood Drive l Danvers, MA 01923 Phone: (978) 777-7500 l Fax: (855) 447-4350 E-mail: rbettencourt@mortgagenetwork.com

Julie Wink Education Committee Liaison (901) 259-5105 julie@datafacts.com

Dean Wangsgard Director (801) 487-8781 dean@nacmint.com

Olga Kucerak, CRMS (t/e 2016) Crown Lending 328 West Mistletoe l San Antonio, TX 78212 Phone: (210) 828-3384 l Fax: (210) 828-3332 E-mail: olga@crownlending.com

Tom Conwell Legislative Committee Liaison (800) 445-4922, ext. 1010 tconwell@credittechnologies.com

Terry Clemans Executive Director (630) 539-1525 tclemans@ncrainc.org

Renee Erickson Membership & Elections Chair (866) 932-2715 renee.erickson@acranet.com

Jan Gerber Office Manager & Member Services (630) 539-1525 jgerber@ncrainc.org

DIRECTORS Fred Kreger, CMC (t/e2016) American Family Funding 28368 Constellation Road, Ste. 398 l Santa Clarita, CA 91350 Phone: (661) 505-4311 l E-mail: fred.kreger@affloans.com Linda McCoy, CRMS (t/e 2016) Mortgage Team 1 Inc. 6336 Piccadilly Square Drive l Mobile, AL 36609 Phone: (251) 650-0805 l Fax: (251) 650-0808 E-mail: linda@mortgageteam1.com John Stevens, CRMS (t/e 2014) ENG Lending 11650 South State Street, Suite 350 l Draper, UT 84020 Phone: (801) 477-7111 l Fax: (866) 442-9937 E-mail: jstevens@englending.com Valerie Saunders (t/e 2015) RE Financial Services 13033 West Lindburgh Avenue l Tampa, FL 33626 Phone: (866) 992-0785 l Fax: (866) 992-1024 E-mail: valsaun@gmail.com


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Straight Forward Branch Opportunities

Contact Chad cjampedro@gogsf.com Direct: 262-901-1444

n New Mexico Mortgage Professional Magazine n JANUARY 2014

GSF Mortgage Corp.




Perfecting Your Inbound Marketing Pitch By K. Justin Restaino When a new prospect responds to your marketing efforts, you must be prepared to feed every need that the client may have. From the moment you pick up the phone, you have about 60 seconds to sell yourself and keep them interested. Sounds easy right? While many people think they can “close” based on their rates and services, the reality is that the borrower must be sold on “you.” Persuading others to think you are cool and interesting is no easy task. An elevator pitch is an ice breaker that will lead you into deeper and more meaningful dialogue. The dialogue should be focused specifically on what you and your company can offer. Typically, you have 60 seconds to present your case through an exciting and meaningful impression on your listener. When you begin your pitch, you should answer three questions: Who are you? What do you do? Where do you want to go or what are you looking for? Make them care People can be kind and loving, but really everyone wants to know “what can you do for me?” When you begin your pitch, get straight to the point and address a problem right away. Personalize the person’s problem into a question and give them the solution: Your company. Leave them asking for a second helping of “you” Elevator pitches are meant to be short and sweet. If you pack in too many details, you’ll lose people. Share relevant information, but nothing too personal. Don’t be afraid to explain your expertise, why you are best suited for the execution and a general overview of what you’re all about.

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Tell a story Stories have a natural way of keeping your listeners interested, but they also provide an easier way for others to remember you. People will remember you better when there is an association attached to a subject. After telling your story, make sure it was good enough to leave your listeners wanting more. If not, you will need to alter your pitch. Avoid jargon Yes, you’ve just been asked what you do, but you don’t need to provide a textbook answer. You need to be able to explain what you do and whom you are in a way that appeals to the masses. Avoid using acronyms and jargon that wouldn’t be understood by someone outside of your industry. Communicate a call to action You are pitching yourself for a reason right? Let your goals be known, but be sure to include why they should be a partner of yours. Time yourself If you generally have about 60 seconds to deliver your pitch, it’s important to practice it against time. If you can’t, try tweaking the details and try again. A good way to start working on your speech is to imagine you are having a casual conversation with your friends. This setting should help you relax and be natural. In order to craft the perfect elevator speech, you must take the time to develop what works for you. No two pitches can produce the same results, so it’s important to make your pitch customized to what’s great about you. If you follow the advice we’ve provided, you’ll be able to present your pitch in the time it takes to ride an elevator through a high-rise building. K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For more than 13 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. He may be reached by phone at (800) 544-8060, ext. 204 or e-mail justin@titanlists.com.

SPONSORED EDITORIAL

THE

elite performer Formulate Fourteen By Andy W. Harris, CRMS

So we’re finally here! It’s already 2014, the biggest year of regulatory changes the residential mortgage industry has seen to date. Interestingly enough, the regulatory changes may not place the level of burden the media has portrayed on our industry. The big question is what the housing market will look like after applying this new regulation, combined with a significant reduction in origination volume during a job market recovery. I’m not going to get into statistics or regulatory analytics, but simply focus on the business formula you need heading into the future of the new mortgage industry. Here are a few key items and bullet points to focus on when building your strategic plan for 2014 as a mortgage professional.

Career awareness You must be aware of your surroundings and have long-term, career-minded objectives. You must balance your sales and marketing with regulation education and how that will impact originations. Doing this will help you close more loans. No more working through the motions of a job title or piggy-backing on others. Pay attention! You must understand the analytics of the industry and regulations we face, as well as the position you are in to prepare for change. Self-brand your business, image and team. Be nimble if necessary and pay attention to changes in your surroundings and don’t let any sales pitch develop ignorance. Do your own research and follow the data and patterns to help predictions and establishing a clear vision.

No excuses Don’t blame the market or rising interest rates for any lack of production. Be proactive rather than reactive. Only compare your success to the person in the mirror and no one else. Set realistic goals around where you are and where you want to be. Don’t surround yourself with any naysayers or those that bring a negative vibe, instead, surround yourself with those who can motivate and inspire you. It doesn’t matter how far volume drops in the media or for someone else. There are thousands of people in your local market buying homes each and every month regardless of interest rate or economic volatility. The question is what percentage of them will choose you for their mortgage needs?

Embrace change There will be a number of changes and challenges to adopt in 2014 with restricted revenues and heightened regulation. Creditors must deal with and adapt to these changes with more challenges than at the origination level, but originators must respect what creditors are facing and understand the details. Whether you are employed by a creditor or not when originating loans, these adjustments to the market always trickle down to the consumer, and ultimately, trickle down to your business. You must be able to effectively adjust and clearly communicate these changes to your clients.

Budget Prepare for the worst financially, but be motivated and work hard for the best. Build reserves and reduce liabilities. When you have periods of success, save your money. Do not allow failures to pull you down, but learn from them and use them to lift you up. Take only calculated risks, but only if the budget allows for it. Budget your time on tasks that bear the most fruit and invest continued on page 52


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Services LLC. LLC. All Rights Reserved. Reser ved. Equal for the extension of credit credit or a commitment 2013 ツゥ Rushmor Services LLC, Not an offer offer for LLC, NMLS ID# 185729, 15480 Laguna Canyon Canyon Road, Suite 100, Irvine, Rushmoree Loan Management Services ual Housing Lender Lender. r. Rushmore Rushmore Loan Management Services Irvine, CA CA 92618. 1-866-699-5600. Not brokers.. Rushmore Rushmore does Bankerr-Br - okerr--Servicer (#101513); Licensed for mortgage mortgage brokers. Massachusetts, Missouri, Missouri, or Nevada. Nevada. Alabama Consumer Credit Exemption; Arkansas Arkansas Mortgage Mortgage Banker-Broker-Servicer Licensed Credit (#21602); Alaska Mortgage Mortgage Lender (AK185729); (AK185729); Arizona Wholesale Lender Exemption; to lend. Intended for does not lend in Alaska, Massachusetts, by the Department Department of Corporations under the California tgage Lending Act (#4131068); Colorado Wholesale Wholesale Lender Ex Mortgage Lender (ML-185729); Delaware Delaware Mortgage Mortgage Lender (#012394); District of of emption (Regulated by by the Division of Real Estate); Connecticut Mortgage by Mortgage Exemption California Residential Mor Columbia Mor tgage Lender (MLB185729); Florida Mor tgage Lender Licensee (#24224); waii Mortgage Mortgage Loan Originator Company Company (HI-185729); Idaho Idaho Wholesale Lender Exemption; Exemption; Illinois Residential Residential Mortgage Mortgage Licensee (MB.6760723); Indiana Indiana Mortgage Mortgage Lender-Servicer Mortgage Hawaii tgage Lender r-Ser - vicer (MLD622); Georgia Mor 24);; Ha DFI First Lien Mor tgage Lending (#18619);; Indiana DFI Subor dinate Lien Mor wa Mor Kansas Supervised Kentucky Mortgage Mortgage Company Company (MC71455); Louisiana Residential Mortgage Mortgage Lending (#185729), Maine Mortgage Subordinate Mortgage tgage Lending (#187644); Io Iowa Mortgage tgage Bank Banker er (MBK-2009-0083); Kansas Supervised Loan (SL.0026265); Kentucky Super vised Lender (SLM11886); Mar inator (185729); M ississippi M ortgage Lender Servicer (FL0017075); Michigan Seconda Supervised Maryland yland Mor Mortgage tgage Lender (#19168),, Mic Michigan Mor Mortgage tgage Br Broker, okerr, Lender & Servicer Secondary ry Mo Mortgage rtgage Br Broker, okerr, Lender & Ser Servicer vicer (SR0017076);; M Minnesota innesota Residentia Residentiall Mo Mortgage rtgage Orig Originator Mississippi Mortgage (185729); Montana Mor New tgage Lender (#185729); Nebraska Mor tgage Bank er (#2071); Licensed by by the New New Hampshire Hampshire Banking Department Mortgage Mortgage Banker Department Mortgage Mortgage Banker Banker (#15265-MB), Licensed by by the New New Jersey Jersey Department Department of Banking and Insurance Residential Mortgage Mortgage Lender (#186729),, New Mexico Mor tgage Loan Compan th Car olina Mor tgage Lender (L-154769); (L-154769); North North Dakota Dakota Money Money Broker Broker (MB102411); Licensed Mortgage of Registration Registration (SM501700.000); Mortgage Companyy (185729); Nor North Carolina Mortgage Mortgage Banker窶年YS Banker窶年YS Department Department of of Financial Financial Services Services ( #B501009); Ohio Mortgage Mortgage Loan Act Certificate Certificate of Oklahom tgage Br oker (MB001561); Or egon Wholesale Lender Ex emption; Licensed bbyy the P ennsylvania Depar tment of Banking Mor Dakota Mortgage Mortgage Oklahomaa Mor Mortgage Broker Oregon Exemption; Pennsylvania Department Mortgage tgage Lender (#39094); Rhode Island Licensed Lender (#20132838LL); (#20132838LL); South Carolina Carolina Mortgage Mortgage Lender/Servicer Lender/Ser vicer (MLS-185729); South Dakota Lender (ML.04880); T Mor tgage License (109273); T exas SML Mor ennessee e tgage Banker Banker Registration; Utah Wholesale Wholesale Lender Exemption; Washington Consumer Loan Loan Company Company Tennessee Mortgage Texas Mortgage Exemption; Vermont Vermont Lender (#6411); Licensed by by the Virginia State Corporation Corporation Commission Lender Licens Licensee (MC-5664); Washington (CL-185729); W est Virginia Mor tgage Lender (ML-24836); Wisconsin Mor tgage Bank West Mortgage Mortgage Banker er (#185729); W Wyoming yoming Mor Mortgage tgage Lender/Br Lender/Broker oker (#2250); Fannie Mae Seller/Servicer Seller/Servicer (#30519-000-4); HUD FHA Title II (#3094100002);Veterans (#3094100002);Veterans Affairs Lender nder (#902914-00-00);; USDA. USD DA. A


Diversity and Inclu By Jonathan Foxx n January 2012, the Consumer Financial Protection Bureau (CFPB) launched the Office of Minority and Women Inclusion (OMWI).1 Then, in March 2013, the OWMI published its Annual Report to Congress (Report) about the CFPB’s due diligence review of diversity and inclusion in certain work environments. The period subject to review was Jan. 1, 2012 to Dec. 31, 2012. The Report produced statistical diversity findings relating to the Bureau and other federal agencies and, importantly, indicated a mission to produce diversity findings for regulated entities.2 The Dodd-Frank Act created not only the Bureau’s OWMI but also similar offices at other federal financial regulatory agencies (collectively, the “Agencies”),3 tasking them with advising on the impact of the policies and regulations regarding minority-owned and women-owned businesses (collectively, the OWMIs). The follow-up to these studies was the goal of developing standards for (1) equal employment opportunity and the racial, ethnic, and gender diversity of the agency workforce and senior management; (2) increased participation of minority-owned and women-owned businesses in the programs and contracts of the agency; and (3) assessing the diversity policies and practices of entities regulated by the agency.4 The Report noted that in February 2013 the CFPB entered into a Memorandum of Understanding with the Equal Employment Opportunity Commission to access employment demographic survey data. That data will provide the analytical and statistically derived composition of regulated entities. The intent on the part of the Bureau and the OWMIs was to develop common standards for assessing the diversity policies and practices of regulated entities and publish a proposal of these standards for public comment sometime in 2013.5 On Oct. 23, 2013, the Federal Agencies announced their “common standards” proposal, entitled Joint Standards for Assessing Diversity Policies and Practices of Regulated Entities (Proposal).6 This is an Interagency Proposal that is meant to “promote transparency and awareness of diversity policies and practices within the institutions.”7 The Proposal sets forth four areas:

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1. Organizational commitment to diversity and inclusion;

2. Workforce profile and employment practices; 3. Procurement and business practices and supplier diversity; and 4. Practices to promote transparency of organizational diversity and inclusion. In developing these proposed standards, the Agencies have expressed their view that there are operative variables, such as an institution’s asset size, number of employees, governance structure, income, number of members or customers, contract volume, location, and community characteristics. The Agencies notified the public that their respective OMWI Directors held roundtable discussions with a range of parties, including “representatives from depository institutions, holding companies, credit unions, and industry trade groups to solicit input on assessment standards and to learn about the challenges and successes of current diversity programs and policies.”8 Roundtable discussions also were held with financial professionals, consumer advocates, and community representatives to gain a greater understanding of issues facing minorities and women in employment and in business contracting in the financial sector.9 The Proposal was published in the Federal Register on Oct. 25, 2013, entitled Notice of Proposed Interagency Policy Statement with request for Public Comment.10 For a period of 60 days from its publication date, this policy statement was available for public comment.11 The comments were due by Dec. 24, 2013. To allow the public more time to consider the proposed standards, the Agencies extended the comment period to Feb. 7, 2014. Thus, comments must be received on or before Feb. 7, 2014.12 It is important to institute a policy and procedures for implementing the requirements set forth in the Proposal. In anticipation of the Final Rule, the following provides an outline both of the diversity requirements and the recommended features of a policy statement for diversity and inclusion.

Diversity: Policies, practices and standards It should be noted that diversity policies, procedures, practices and standards of the entities regulated by the Agencies would take into consideration an individual entity’s size and other characteristics, such as total assets, number of employees, governance structure, revenues, number of members and/or customers, contract volume, geographic location, and community characteristics. These characteristics are to be taken into account when

establishing an individual entity’s standards. Organizational commitment to diversity and inclusion The Agencies provide their philosophical position with respect to organizational commitment on the part of an entity’s management. According to the Proposal, “leadership of a successful organization demonstrates its commitment to diversity and inclusion. Leadership comes from the governing body such as a board of directors, senior officials, and those managing the organization on a day-to-day basis.” Standards The Proposal offers a ‘high-level’ standard that is meant to promote diversity and inclusion both in employment and contracting. The corporate culture that embraces diversity and inclusion would adopt the following standards: l The regulated entity includes diversity and inclusion considerations in both employment and contracting as an important part of its strategic plan including hiring, recruiting, retention and promotion. l The entity has a diversity and inclusion policy that is approved and supported by senior leadership, including senior management and the board of directors. l The entity provides regular progress reports to the board and/or senior management. l The entity conducts equal employment opportunity and diversity and inclusion education and training on a regular and periodic basis. l The entity has a senior level official who oversees and directs the entity’s diversity efforts. For some institutions, these responsibilities are assigned to an executive-level chief diversity officer (or equivalent position) with dedicated including women and minorities, in its hiring, recruiting, retention, and promotion, as well as in its selection of board members, senior management, and other senior leadership positions.

Workforce profile and employment practices In the Proposal, the Agencies state that “many entities promote the fair inclusion of minorities and women in their workforce by publicizing employment opportunities, creating relationships with minority and women professional organizations and educational institutions, creating a culture that values the contribution of all employees, and

encouraging focus on these objectives when evaluating performance of managers.” It is expected that entities with diversity and inclusion programs will regularly evaluate their programs and identify areas that can be improved. The Agencies take the position that entities use various analytical tools to evaluate a wide range of business objectives, including metrics to track and measure the inclusiveness of their workforce (i.e., race, ethnicity, and gender). Regulated entities that are subject to the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP) reporting requirements currently provide data and supporting documentation that serve as analytical tools to evaluate diversity and inclusion programs.13 For entities not subject to the EEOC and OFCCP reporting requirements, the following outline may serve as a model for data analysis in order to evaluate and assess diversity efforts. Standards l An entity that files an annual EEO–1 Report as required by Title VII of the Civil Rights Act of 1964, or otherwise tracks their workforce data, uses the data to evaluate and assess workforce diversity and inclusion efforts. l An entity that prepares annual Affirmative Action Plans as required by Executive Order 11246 under the jurisdiction of the OFCCP uses those plans to evaluate and assess workforce diversity and inclusion efforts. l The entity utilizes metrics to evaluate and assess workforce diversity and inclusion efforts, such as recruitment, applicant tracking, hiring, promotions, separations (voluntary and involuntary), career development support, coaching, executive seminars and retention across all levels and occupations of the organization including executive and managerial ranks. l The entity holds management accountable for diversity and inclusion efforts. l The entity has policies and practices that create diverse applicant pools for both internal and external opportunities that may include: l Outreach to minority and women organizations; l Outreach to educational institutions serving significant minority and women student populations; and


usion l Participation in conferences, workshops, and other events to attract minorities and women and inform them of employment and promotion opportunities.

Procurement and business practices— supplier diversity

Standards l The entity has a supplier diversity policy that provides for a fair opportunity for minority-owned and women-owned businesses to compete in procurements of business goods and services. This includes contracts of all types, including contracts for the issuance or guarantee of any debt, equity, or security, the sale of assets, the management of assets of the entity, and the making of equity investments by the entity. l The entity has methods to evaluate and assess its supplier diversity,

which may include metrics and analytics related to: l Annual contract spending by the entity; l Percentage spent with minorityowned and women-owned business contractors by race, ethnicity, and gender; l Percentage of contracts with minority-owned and womenowned business sub-contracts; and l Demographics of the workforce for contractors and subcontractors. l The entity has practices to promote a diverse supplier pool which may include: l Outreach to minority-owned and

women-owned contractors and representative organizations; l Participation in conferences, workshops and other events to attract minority-owned and women-owned firms and inform them of contracting opportunities; and l An ongoing process to publicize its procurement opportunities.

Practices to promote transparency of organizational diversity and inclusion How an organization goes about promoting transparency and organizacontinued on page 47

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According to the Proposal, the Agencies assert that they “recognize that there is limited public information available on supplier diversity at regulated entities and it may be more challenging to compare supplier diversity policies and practices among regulated entities. Some smaller institutions may also face greater challenges in gathering such information.” Nevertheless, the Proposal sets forth certain standards that place the responsibility on regulated entities to vet their vendors in light of their vendors’ diversity and inclusion practices. The Agencies take this view because they consider the challenge to be similar to workforce profile and employment practices (Supra). Thus, as in the employment context, the Agencies contend that entities often use metrics to know the baseline of how much they spend on procuring goods and services and contracting for other business services, how much they spend with minority-owned and women-owned businesses, the availability of relevant minority- owned and womenowned businesses, and the growth in usage over time. It follows, then, in their view, that “entities can use outreach methods to inform minorityowned and women-owned businesses (and affinity groups representing these constituencies) of the availability of resources to support diversity strategies these opportunities and the mechanism and initiatives.” Methodologically, the Agencies believe that entities’ “prime contractors” often use subcontractors to fulfill the obligations of various contracts. Therefore, the use of minority-owned and women-owned businesses as subcontractors provides valuable opportunities for both the minority-owned and women-owned businesses as well as for the prime contractor. The view, apparently, is best expressed in the Proposal’s statement that “the prime contractor can use this opportunity to work with minority-owned and womenowned businesses, and can expand the prime contractor’s own capability under the contract.” Furthermore, the Proposal suggest that entities can encourage the use of minority-

owned and women-owned subcontractors by incorporating this objective in their business contracts.


United Wholesale Mortgage Offers New Flex Term Program

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United Wholesale Mortgage (UWM) has announced that it has designed a new program that provides originators with the option for borrowers to select the amortization term that works best for their financial situation. “What our Flex Term program achieves is to empower our originators with the ability to customize the perfect loan for their customers while avoiding resetting the mortgage clock,” said Mat Ishbia, president of UWM. “We want to make our brokers as successful as possible and help borrowers obtain loans that are ideal for their personal scenario. Flex Term allows our originators to offer many of our products to borrowers that now accompanies the option to choose their desired amortization term.” UWM’s Flex Term program includes the following: l Customizable mortgage option that allows borrowers to select the loan term of their choice; l An opportunity to refinance without resetting the mortgage clock; l Eight- to 30-year amortization terms made available on all fixed-rate conventional loan products; and l The flexibility to combine the program with additional UWM products.

SSI Announces Q1 QC Product Enhancements Secure Settlements Inc. (SSI) has announced its first new technology enhancement for the first quarter of 2014. The enhancement improves SSI’s proprietary Closing Agent Search Engine (CASE) tool. Lenders access SSI’s CASE tool, a national database of mortgage settlement agents with real-time risk statuses, to verify an agent’s status prior to wiring mortgage proceeds. In 2013, this searchable database was accessed as a quality control (QC) measure prior to the closing of more than 122,000 loans nationwide and SSI expects usage to surpass 500,000 transactions by the end of 2014 as more lenders sign up for its risk tools. Lenders who use the CASE tool will have the ability to create their own “My

Agent List” unique to their company. This list will maintain basic information as well as risk data relevant to their specific settlement agents. The agent data will be updated in real time and can be exported or printed in the event a lender must demonstrate that they maintain a list for regulatory and government-sponsored enterprise (GSE) audit and exam purposes. For example, Fannie Mae seller-servicers must be able to demonstrate that they maintain a list of approved and vetted agents as a condition of their FNMA relationship. “We continue to develop enhancements and technology tools to assist banks and mortgage lenders meet their regulatory and prefunding loan quality assurance needs,” said Andrew Liput, CEO of SSI. “This new enhancement is merely one of several that we expect to announce this year as we strive to maintain our position as an innovative leader in mortgage banking enterprise risk management.”

McLean Mortgage Announces New RateFlex Program McLean Mortgage Corporation has announced the release of the RateFlex Program, designed to aid homeowners and prospective homebuyers in today’s real estate market. McLean Mortgage recognizes the volatility of interest rates this year has made consumers more reticent to participate in the real estate market though rates are historically extremely low. The RateFlex Program allows individuals refinancing their home loan or purchasing a home to lock-in an interest rate so to protect against rate increases. If market rates move down after they are approved, they may relock their rate at the lower rate at no charge. Under this program, a deposit is collected at application which is credited at closing. No additional fees are charged for the ability to relock which may take place any time after approval and no less than one week before closing. “Today, consumers are more savvy with regard to shopping lenders and watching the interest markets. Many wait in the

hopes that rates will move lower,” said James Nader, executive vice president of capital markets and operations at McLean Mortgage Corporation. “Now, the consumer can lock in a rate with confidence because they are protected against increases, but benefit if rates decrease. It is truly a win-win situation for homebuyers and homeowners.”

MBA Breaks Down QM and ATR in New Compliance Guide MBA Education has unveiled the “Compliance Essentials Ability to Repay (ATR)/Qualified Mortgage (QM) Resource Guide,” the a manual that explains not only the effects of the ATR/QM rule on the real estate finance industry but also how organizations should adjust and operationalize to comply with this new federal regulation. “The complexity and obligations under the ATR/QM rule will be burdensome for many companies in the real estate finance industry,” said David H. Stevens, president and CEO of the Mortgage Bankers Association. “Because of this, MBA Education has created the only resource manual that helps organizations understand and adjust to this new reality. The Jan. 10 deadline for compliance is fast approaching, making it critical for those affected by this new regulation to get up to speed immediately and begin properly conforming to these requirements.” This resource guide includes: l A clear understanding of what is required for all employees including loan officers, processors and underwriters; l A basis for training staff to be aware of the new demands to better support organizations and reduce their risk; l A description of how to operationalize the rule requirements in an organization’s day-to-day business. MBA has worked with the law firm of Weiner Brodsky Kider PC to produce this useful and affordable guide. This book is the equivalent of many hours of legal consultation and is available to MBA

members at a reasonable cost, considering its value.

Capsilon Announces New Network Delivery Option Capsilon has announced the release of new a Network Delivery capability, which enables users to deliver secure and compliant loan packages to leading GSEs and financial institutions. Users of Capsilon’s DocVelocity product can now deliver a single or group of loan packages for batch delivery to seven flagship institutions. Four supported major investor institutions include Chase, Citibank, Flagstar Bank and Wells Fargo Bank. Three supported government institutions include Fannie Mae, Freddie Mac and the Federal Housing Authority. With a single click, loans are sent directly to these institutions according to their prescribed formats and protocols. DocVelocity’s quality control (QC) features provide more efficient selection, mapping, translation and tracking of mortgage documents to ensure accurate and on-time delivery of quality loan packages. Using DocVelocity delivery, the correct documents are selected, properly named and reflect the desired stacking order. “Our Network Delivery capability improves the way loan documents are submitted to GSEs and prominent financial institutions,” said Sanjeev Malaney, chief executive officer at Capsilon. “This capability empowers lenders of all sizes to seamlessly meet the complicated formatting and transmission requirements of these large institutions.”

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 1st of the month prior to the target issue.


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EWSFLASH l JANUARY 2014 l NMP NEWSFLASH l JANUARY 2014 l NMP NEWSF Profit-per-Loan Drops by 50 Percent in Q3

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Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $743 on each loan they originated in the third quarter of 2013, down from $1,528 per loan in the second quarter, the Mortgage Bankers Association (MBA) reported in its Quarterly Mortgage Bankers Performance Report. “Third-quarter profits were reduced by half because of several factors: perloan production expenses that reached study-highs, declining production volume and reduced secondary marketing income,” said Marina Walsh, MBA’s associate vice president of industry analysis. “Historically, mortgage bankers have struggled to control fixed costs and right-size in a declining market, and the increasing costs of compliance and quality control only exacerbate an already difficult situation.” Among the other key findings of MBA’s Quarterly Mortgage Bankers Performance Report are: l In basis points, the average production profit (net production income) was 38 basis points in the third quarter of 2013, compared to 75 basis points in the second quarter. This marks the fourth consecutive quarter that production profits have decreased. l Average production volume was $391 million per company in the third quarter of 2013, down from $439 million per company in the second quarter. The volume by count per company averaged 1,788 loans in the third quarter, down from 1,921 in the second quarter. l The purchase share of total originations, by dollar volume, increased to 67 percent in the third quarter of 2013, up from 52 percent in the second quarter. For the mortgage industry as whole, MBA estimates the purchase share at 49 percent in the third quarter of 2013, up from 34 percent in the second quarter. l Secondary marketing income declined to 244 basis points in the third quarter, compared to 263

basis points in the second quarter. l Total loan production expenses— commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations—increased to $6,368 per loan in the third quarter, up from $5,818 in the second quarter. Third quarter 2013 production expenses were the highest recorded in any quarter since the Performance Report was created in the third quarter of 2008. Personnel expenses averaged $4,130 per loan in the third quarter, up from $3,808 per loan in the second quarter. l The “net cost to originate” was $4,573 per loan in the third quarter, up from $4,207 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. l The average number of production employees per firm decreased slightly to 259 employees in the third quarter, from 261 employees in the second quarter. On a repeater company basis, the average number of production employees per firm dropped to 259 employees in the third quarter, from 269 employees in the second quarter. l Productivity was 2.5 loans originated per production employee per month in the third quarter, down from 2.9 in the second quarter. l Seventy-four percent of the firms in the study posted pre-tax net financial profits in the third quarter of 2013, down from 92 percent in second quarter.

Fitch: CFPB’s QM Rule to Cause Issues for Servicers Smaller U.S. residential mortgage servicers will be challenged by the increased costs of new servicing requirements as they seek to oppor-

tunistically grow through strategic acquisitions, according to Fitch Ratings. The new requirements, issued by the Consumer Financial Protection Bureau (CFPB), went into effect on Jan. 10. Many U.S. residential mortgage servicers have been working diligently to meet new the servicing requirements. They include important changes to how servicers handle borrower notifications and interaction, and key procedure and infrastructure improvements. While these changes are expected to be impactful in 2014, many large servicers have already made significant progress towards meeting the Jan. 10, 2014 deadline, in particular those servicers subject to mortgage servicing consent orders issued previously by government regulators. Where the potential problem lies, however, is with smaller independent/non-bank servicers. This comes as 2013 saw a notable amount of mortgage servicing rights transferred due to servicer consolidation and acquisitions. Larger servicers, and in particular commercial bankheld servicers, have been active in offloading the servicing rights on underperforming loans, which are difficult and expensive to manage effectively within regulatory guidelines. A number of servicers, including those offering specialty servicing, have actively sought out such opportunities. This in turn has contributed to a loan servicing acquisition market that has grown increasingly competitive. The dynamics of servicing acquisition and transfer activity is subject to continued transition as these smaller servicers struggle with the requirements and costs of the new servicing guidelines. Fitch recognizes that many independent/non-bank servicers have significant management expertise and have benefited notably from the use of modern servicing technology. However, compliance with the new rules will mean more recordkeeping and infrastructure improvements, and thus higher costs. The cost of compli-

ance with the new guidelines has likely raised the minimum number of loans that a company has to service in order to remain profitable; i.e. to spread the increased cost over more loans. If properly managed, the required changes can be implemented without major challenges. However, the change place higher fixed costs on servicer operations. Since larger servicers may more easily absorb higher fixed costs, smaller servicers may struggle as they seek to balance the cost of regulatory rule compliance with the need to maintain or grow their servicing portfolios, address their competitive position for new acquisitions, and manage their overall profitability. Mortgage servicing is a cost-control and cost-competitive business function, and the new CFPB regulatory requirements will likely pressure this further. It is also expected that this environment will cause further pressure for consolidation in the servicing industry. Fitch will continue to monitor the effectiveness of individual servicers as they seek to incorporate the important guidelines of the CFPB and other regulatory requirements into their business practice.

FHFA Announces Near $2 Billion MBS Settlement With Deutsche Bank The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac, has announced that it has reached a settlement with Deutsche Bank AG, related companies and specifically named individuals for $1.925 billion to resolve claims in FHFA v. Deutsche Bank AG, et al., as well as certain other matters. The settlement addresses claims alleging violations of federal and state securities laws in connection with private-label mortgagebacked securities (PLS) purchased by Fannie Mae and Freddie Mac between 2005 and 2007. Under the terms of the agreement, Deutsche Bank will pay approximately $1.63 billion to Freddie Mac and $300 million to Fannie Mae. As part of the settlement, the FHFA, Fannie Mae and Freddie Mac will release certain claims


brought against Deutsche Bank related to securities sold to Fannie Mae and Freddie Mac between 2005 and 2007. The settlement agreement does not release Deutsche Bank from any claims relating to LIBOR manipulation and does not include claims made against Deutsche Bank in two other PLS lawsuits presently the subject of ongoing litigation: FHFA v. SC Americas, Inc., et. al., and FHFA v. Countrywide Financial Corp., et. al. The other parties to those lawsuits were not part of the negotiations with Deutsche Bank. This is the sixth settlement that FHFA has attained pursuant to the 18 PLS lawsuits filed in 2011. FHFA remains committed to satisfactory resolution of the remaining actions.

master policies, which will be filed with state insurance regulators for their review and approval. FHFA, Fannie Mae and Freddie Mac anticipate that the master policies will go into effect in 2014, pending review and approval by state insurance regulators. In the coming weeks, Fannie Mae and Freddie Mac will provide guidance to lenders and servicers regarding specific effective dates.

Hammerhouse Seeking Industry Input for Fourth Annual Originator Survey

Hammerhouse LLC has launched its “Fourth Annual Survey of Originator

Opinion,” which seeks out originators for their opinions on critical issues facing the mortgage industry and impacting their job performance. The “Annual Survey of Originator Opinion” has become a key indicator for mortgage lenders on what they need to focus on to attract, hire and retain talent with transferable books of business. To participate in this 25 question Annual Survey for Originator Opinions, visit the “What’s Hot Section” on the company’s Web site, www.teamhammerhouse.com. “2014 will be another year of significant changes for the mortgage industry as the full impact of the new lending environment becomes a reality and lenders work to convince proven pro-

ducers, to stay or join their company,” said Drew Waterhouse, managing director of Hammerhouse. “Hammerhouse is a leading source of actionable information, and we urge all originators to take a few minutes to complete this survey and become influencers for a better mortgage industry.” As a thank you for participation, Hammerhouse is raffling off a new 16G iPad. Entries must be made at the time the survey is taken and no later than Feb. 15, 2014. Hammerhouse will be drawing, announcing and posting the raffle winner on its Web site on April 1, 2014. The Hammerhouse annual survey covers six key business components continued on page 16

GSEs Complete First Major Overhaul of MI Master Policy Requirements

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The Federal Housing Finance Agency (FHFA) has announced that the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, have completed the first major overhaul of mortgage insurance (MI) master policy requirements in many years. FHFA’s 2013 Conservatorship Scorecard calls for Fannie Mae and Freddie Mac to develop aligned requirements for master policies. Through this ongoing effort, Fannie Mae and Freddie Mac, with FHFA oversight, have worked with the mortgage insurance industry to address and update gaps in the existing master policy framework. The new requirements will, among other things, facilitate timely and consistent claims processing. Key improvements include: l Loss mitigation: Requires that master policies support various loss mitigation strategies that were developed during the housing crisis to help troubled homeowners. l Claims: Establishes specific timeframes for processing claims, including requests for additional documentation. l Assurance of coverage: Sets standards for determining when, and under what circumstances, coverage under the mortgage insurance policy must be maintained and when it may be revoked. l Enhanced communication: Pro-motes information sharing among mortgage insurers, servicers and Fannie Mae and Freddie Mac. “Updating the mortgage insurance master policy requirements is a significant accomplishment for Fannie Mae and Freddie Mac,” said former FHFA Acting Director Ed DeMarco. “The new standards update and clarify the responsibilities of insurers, originators and servicers and they enhance the insurance protection provided to Fannie Mae and Freddie Mac, which ultimately benefits taxpayers.” Mortgage insurance master policies specify the terms of business interaction between seller-servicers and mortgage insurers. Mortgage insurers will incorporate the aligned requirements into new




Marketing Compliance Corner: FFIEC Social Media Guidelines By Michael J. Wallace Esq.

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The Federal Financial Institutions Examination Council (FFIEC) held a teleconference on Dec. 19 to discuss its Social Media: Consumer Compliance Risk Management Guidance, which was effective beginning Dec. 11. This article will summarize the teleconference. The use of social media for marketing presents an exciting opportunity for the mortgage industry. It is cost-effective, immediate and targeted. It provides the loan officer and the company the ability for creativity and individuality. All types of businesses are now using social media, and its expansion is exponential. The FFIEC indicated that “No new regulatory requirements are created or imposed” as a result of the Guidance. This does not mean that there are no additional compliance burdens and responsibilities placed on the financial institution. The FFIEC made it clear that all “existing compliance laws/regulations continue to apply to activities conducted via social media as they would to activities conducted via other channels.” What does this mean? It simply means that social media must be managed in the same manner as current marketing channels. For example: A direct mail piece is reviewed for compliance before mailed and must be retained for two years. This appears benign; however, the implementation may not be. Social media is immediate, fast, nimble and voluminous. This will require the company to implement different review systems. Should the company institute a review of content prior to posting, or a review after the fact? What about retention? The FFIEC Guidance does not provide the answer. The company is responsible to manage the risk and comply with all current laws/regulations. We recommend the following: 1. Create a written social media policy, acknowledged by all; 2. Establish a “baseline” review of all social media usage at the start of employment for new hires; 3. Require users submit proposed content to review, and define appropriate workflow options to support rapid turnaround of requests; and 4. Establish a timely review process for continued compliance reviews of social media outlets, possibly twice a year. There have been many changes in business marketing. Business information was mailed via the United States Postal Service (USPS); then faxed and now e-mailed or tweeted. Change is inevitable, the companies that adapt and embrace it will be more successful. Social media is here to stay and can be successfully and compliantly used. Michael J. Wallace Esq. is president of CLIX MG. AcuClix is a Web-based software solution that provides a company with the ability to comply with FFIEC Guidelines to manage, review, report and inspect the usage of social media by its loan officers. For a free White Paper on social media and managing risk, visit www.acuclix.com. Michael may be reached by phone at (727) 4740961 or e-mail mwallace@clixmg.com.

www.acuclix.com SPONSORED EDITORIAL

nmp newsflash

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within the mortgage origination industry: Leadership, Culture, Business, Operations, Technology and Geography. All mortgage loan originators (bank, mortgage bank, correspondent or broker) are invited to complete the survey. Answers are confidential and will only appear in an aggregate analysis. Results of the survey are used to educate lenders on the perceptions of loan officers and to advocate for improvements that will benefit loan officers, leaders, lenders and consumers.

GSEs Prevent Three Million-Plus Foreclosures Since September 2008 The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac have reached a significant milestone, completing more than three million foreclosure prevention actions since the start of conservatorship in September 2008. FHFA noted this milestone in its third quarter Foreclosure Prevention Report (also known as the Federal Property Manager’s Report), which details results of foreclosure prevention programs. Helping families avoid foreclosure through loan modification and other programs has been a priority of the agency and is one of the key goals of FHFA’s Strategic Plan for Enterprise Conservatorships. “Three million completed foreclosure prevention actions is a significant achievement,” said former FHFA Acting Director Edward J. DeMarco. “It represents real assistance to homeowners, improved stability for their communities, and has produced meaningful savings for taxpayers. I am grateful for the persistent effort of everyone at FHFA, Fannie Mae, and Freddie Mac, who have contributed to reaching this milestone.” Foreclosure prevention activities generally fall into two broad categories: home retention actions and foreclosure alternatives. The former includes loan modifications through the Home Affordable Modification Program (HAMP) and other non-HAMP modification programs, forbearance plans and repayment plans. The latter includes deeds-in-lieu of foreclosure, streamlined modifications and short sales. The more than three million foreclosure prevention actions completed since the start of the conservatorships have helped roughly 2.5 million borrowers stay in their homes through loan modifications and other actions. In addition, over 500,000 borrowers avoided foreclosure through short sales or deeds-in-lieu.

in the third quarter of 2013 as mortgage interest rates steadily increased in the preceding months, according to the Federal Housing Finance Agency’s Third Quarter 2013 Refinance Report. Total refinance volume was just under 900,000 while a little more than 200,000 homeowners refinanced through HARP in the third quarter 2013, bringing the total number of refinances through the program to nearly 778,000 for the year. To date, more than 2.9 million homeowners have refinanced through HARP since the program began in April 2009. Also in the third quarter 2013 report: l HARP volume represented approximately 23 percent of total refinance volume in the third quarter. l Through the third quarter, borrowers with loan-to-value (LTV) ratios greater than 105 percent accounted for 36 percent of the volume of HARP loans. l The number of completed HARP refinances for deeply underwater borrowers—those with LTV ratios greater than 125 percent—continued to represent a significant portion of total HARP volume. Sixteen percent of the loans refinanced through HARP in the third quarter had higher LTV ratios. l HARP continued to account for a substantial portion of total refinance volume in certain states. Through the third quarter, HARP refinances represented 57 percent of total refinances in Nevada and 49 percent of total refinances in Florida, more than double the 22 percent of total refinances nationwide over the same period.

Ginnie Mae Reports Slight Decrease in Annual Revenue

Ginnie Mae has reported Fiscal (FY) 2013 revenues of $1.225 billion, down slightly from $1.246 billion in 2012. Net income reached $628.4 million in FY 2013, up from FY 2012 net income of $609.6 million. Retained earnings continued to grow, rising to nearly $17.0 billion from $16.4 billion. Ginnie Mae guaranteed $460.4 billion in mortgagebacked securities (MBS) in FY 2013, the highest rate of issuance in the corporation’s 45-year history. The corporation has an outstanding MBS balance of $1.457 trillion. “Ginnie Mae continues to provide stability to the secondary mortgage market while generating profits for the U.S. HARP Refis Decline in Q3 Government, and this year was no Total refinance vol- exception,” said Ginnie Mae President ume, including refi- Ted Tozer. “Demand for government nances through the loans remained strong. We issued more Home Affordable Refinance Program (HARP), decreased continued on page 18


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Keeping Pace With Changing State Rules: No Easy Task for AMCs By Vladimir Bien-Aimé

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Today’s appraisal management companies (AMCs) must adhere to a myriad of changing rules and regulations. AMCs are constantly challenged to keep up with these rules to remain compliant for their lender clients. In particular, new laws are regularly enacted or altered on a state-by-state basis. Being in compliance with regulations is no easy undertaking, especially for AMCs doing business on a national level in many states. The rules vary in each state—some more than others. The risk of fines and exposure runs high, as does the prospect of the loss of state licenses by which AMCs are permitted to operate in. AMCs have to provide levels of service that effectively adhere to appraisal compliance rules. But, these rules are unfortunately broken. Some AMCs that are more concerned with making a buck than protecting clients. I’ll say this … many large national AMCs that lenders engage with do a poor job of monitoring, implementing and reporting back detailed compliance status with state laws. State-driven legislation is a moving target that frequently changes. In accordance with each state’s legislation, the registration for AMCs must be compliant in every state they do business in. It’s paramount that AMCs’ lender clients have visibility and access to reporting behind the appraisal requirements and regulations that are imposed by each state. It’s important to take things like the listing of registration requirements, bonding and disclosure requirements, fees, character reference needs and processes for compliance. AMCs have to continuously monitor and keep abreast of all state-based regulatory changes. We know that new compliance requirements across the board of the mortgage supply chain has increased the costs for lenders to originate loans, pinched profits and raised origination fees for borrowers. The bottom line … AMCs must have constant visibility over the regulations they must adhere to. If they do not, then they are in the dark. As such, they cannot effectively service lender clients. I’ve identified the issues and concerns with state-by-state rules in this column. Next month, I’ll go over the various solutions that are commercially available for the industry to leverage. Vladimir Bien-Aime’ is president and chief executive officer of Global DMS. Since co-founding Global DMS in 1999, Bien-Aime’ has grown the company to capture a leading share of the appraisal management segment, with a client base of over 20,000 unique users and a 100 percent retention rate among lender clients. He may be reached by phone at (877) 866-2747 or visit www.globaldms.com.

SPONSORED EDITORIAL

nmp newsflash

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MBS than at any other time in Ginnie Mae history, with an increase of 18.6 percent from FY 2012. “Ginnie Mae serves a vital role in the U.S. housing finance system—a system that runs through the core of our nation’s economy,” said Ginnie Mae Executive Vice President and Chief Operating Officer Mary Kinney. “Our consistently solid financial results demonstrate Ginnie Mae’s position as a source of strength for the industry. And we are building for our future by improving and enhancing our securitization platform to meet the needs of our Issuers and investors.”

Commercial and Multifamily Delinquencies Dip During Q3 Delinquency rates for commercial and multifamily mortgage loans continued to decline in the third quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. During the third quarter of 2013, the 60+ day delinquency rate for commercial and multifamily mortgages held in life company portfolios decreased 0.02 percentage points to 0.06 percent. The 60+ day delinquency rate for multifamily loans held or insured by Freddie Mac decreased 0.04 percentage points to 0.05 percent. The 60+ day delinquency rate for multifamily loans held or insured by Fannie Mae decreased 0.10 percentage points to 0.18 percent. The 90+ day delinquency rate for loans held by FDICinsured banks and thrifts decreased 0.23 percentage points to 1.95 percent. The 30+ day delinquency rate for loans held in commercial mortgage-backed securities (CMBS) decreased 0.30 percentage points to 7.51 percent. “Commercial and multifamily mortgage performance continues to reflect overall economic gains,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Improvements in underlying property performance and property values, and the continued availability of commercial and multifamily mortgage financing, led to declines in delinquency rates for every major investor group.” The third quarter 2013 delinquency rate for commercial and multifamily mortgages held in life insurance company portfolios was 7.47 percentage points lower than the series high (7.53 percent, reached during the second quarter of 1992). The delinquency rate for multifamily loans held by Freddie Mac was 6.76 percentage points lower than the series high (6.81

percent, reached in the fourth quarter of 1992). The delinquency rate for multifamily loans held by Fannie Mae was 3.44 percentage points below the series high (3.62 percent, reached during the fourth quarter of 1991). The rate for commercial and multifamily mortgages held by banks and thrifts was 4.63 percentage points lower than the series high (6.58 percent, reached in the second quarter of 1991). The rate for loans held in CMBS was 1.51 percentage points below the series high (9.02 percent, reached in the second quarter of 2011). Construction and development loans are not included in the numbers presented here, but are included in many regulatory definitions of ‘commercial real estate’ despite the fact they are often backed by single-family residential development projects rather than by office buildings, apartment buildings, shopping centers, or other income-producing properties. The FDIC delinquency rates for bank and thrift held mortgages reported here do include loans backed by owner-occupied commercial properties.

CFPB to Educate the Public on New Mortgage Rules

The Consumer Financial Protection Bureau (CFPB) has launched a campaign to educate the public about the new protections provided by the Bureau’s mortgage rules. The Bureau released educational materials in advance of the Jan. 10, 2014 effective dates for its mortgage rules. “Taking on a mortgage may be the largest financial obligation of a consumer’s lifetime,” said CFPB Director Richard Cordray. “We want to make sure that potential homebuyers have the information they need to make responsible decisions and that current borrowers know about their new protections.” The CFPB’s mortgage rules protect consumers from debt traps by requiring mortgage lenders to evaluate whether borrowers can afford to pay back the mortgage before signing them up. The rules also establish new, strong protections for struggling homeowners, including those facing foreclosure. Under the rules, mortgage borrowers will be protected from costly surprises and runarounds by their servicers. The Bureau is working with industry, housing counselors, and consumer groups to promote a smooth implementation of these rules. The bureau is releasing educational materials to improve the public’s understanding of the new rules and their protections. These materials include: l Guide for Housing Counselors: This guide is designed to be a quick reference for housing counselors. The continued on page 36


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NAMB PERSPECTIVE The President’s Corner: January 2014 s we turn the corner on 2013 towards 2014, we have the ability to start over and renew ourselves for the coming year. With all of the turmoil that the year has brought and the questions that seem to be still out there, I am asking all of you to believe in NAMB—The Association of Mortgage Professionals and let us continue to work to get the help that mortgage brokers need to be successful. I continue to hear from the membership about problems that you are having with lenders and their agreements that mask a personal guarantee of all loans that go delinquent. We have a task force that is looking into these agreements for you and we will be making a recommendation to those lenders that have this clause in their agreements. This is a great time to review your agreements with all of your lenders to make sure that it is what you want and how you are doing it. I hope to have this available for you by the February edition, but I will definitely make the information known in my Monday Morning Messenger. Speaking of the Monday Morning Messenger, I hope all of you are getting this every week. If you are not, please go into your membership information and make sure that we have the correct e-mail address to send it to you. We are going to start putting it on our Web site, along with all of the past Messengers, so you can go back and see some of the information. I do appreciate the comments and suggestions I have been getting, so please keep them coming. Send all correspondence to

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president@namb.org and I will get your feedback. In this issue of National Mortgage Professional Magazine, you see that we are having our Annual 2014 Legislative & Regulatory Conference, Sunday-Tuesday, March 2-4 at the Hilton Garden Inn-Capitol in Washington, D.C.. This will be, by far, the most important Conference in the past four years. You need to register and be a part of this event today. The Compliance Session on Sunday, brought to you by Jonathan Foxx and the great people at Lenders Compliance Group and Brokers Compliance Group, will be one of the most important sessions that you will attend in 2014. We need as many members to be getting all of the information on Sunday and Monday, to arm our members walking through the halls of Congress with a message about these new rules. We need to have them understand that brokers and bankers need to be doing the same thing, having the same rules on the same mortgages so as not to confuse the consumer. As much as we hoped the rules would make every mortgage as apples and not still be apples and oranges, we have a lot of work to do to get the consumer what they deserve. If you are getting your advertising together for 2014, don’t forget to advertise that the lenders that you use rebate money back to the customer to help pay closing costs. This should be the number one item you project to your customers. And a campaign that shows your real estate agents that you are all about the consumer will get you more loans closed in 2014. This has always been a neglected area for brokers, and I guarantee that a little

bit of knowledge and finesse will bring you great rewards in the coming months. The Board of Directors for NAMB+ continues to bring you great companies and great people to make your jobs easier. Every strategic partner that is approved through NAMB+ is doing something to make your life easier. NAMB continues to try to use these partners to complete programs that save you money. In the very near future, NAMB+ will be launching their new Web site to be able to tie all of these partners to you. Please stay tuned and I will send out more information when it is finally completed and active. I think that those of you that are out there in Mortgage Land, USA know that I am a creature of habit. I have been doing this business since June of 1977, and I still get up every day and look forward to going to my job to help people. Nothing gives me more satisfaction than to work with customers to reduce their payments, purchase a home, refinance to make life easier or to reduce their mortgage term, etc. I have been doing this almost my entire adult life. I do not know what it would be like to go work a job from 9:00 a.m.-5:00 p.m., go home to my wife and kids for dinner, sit and relax in front of the TV each and every night. I make myself available when the customer needs me and that means when they need me. And you know what? I still love it today. But to address something that one of my reps said to me this week when she said, “I have no reservations that the mortgage broker is going to survive and thrive. The reason is they really know how to adapt from day one!” And it hit me … she was absolutely right. No one does it better for the customer than a mortgage broker. Why? Because we have always had to understand the new way to do something when it comes to mortgage loans. It has always been the broker who had to change the way they did something on a loan, put together a mortgage application, change the way they disclose to the customer, change the way the loan is made, gather additional information to proves this or that. When we had to start disclosing how much money we made on a loan, we embraced it. And during all of this, we want to include outstanding customer service and prove that we are the ultimate mortgage professional to handle their business. I am thrilled to make this my profession and I am proud to do what I do. Yes, I do get frustrated like all of you when it seems like everyone is doing nothing but pick on us. But we are a resilient bunch! We don’t crawl under a rock

and give up. We might complain, and work to figure out how we are going to continue what we do to be successful, but I have a theory. Not too long ago, I attended a presentation where the speaker said: “You had better go out and get with every real estate agent you can because all of the refinances are gone. They have been 100 percent refinanced and they are gone.” Boy, here I am again. Someone telling me I had to change my life again. So I proceeded to go about my life and start talking to some real estate agents. And you know what? I came to the brilliant deduction that he was not telling me to change my life. He was telling me that I had to change the way I was going to get business. Why? Because what he was saying that the phones were not going to ring off the hook anymore and you were going to have to go find those loans. So, I started to make calls to my referral sources, my friends, my closed loans, and yes, started mailing letters to people I spoke with in the last 36 months. And lo and behold, I started to get calls to refinance. This has also led to other people calling me to do a purchase loan or two. It was a case where I didn’t just roll over, but adapted myself to do what I know. I am a mortgage man and that is what I do. I love my job. I love my profession. I love my opportunities that allow me to do this job. So, in conclusion, I know that we did not get any help from the Consumer Financial Protection Bureau (CFPB) in the three percent rule, but when it doesn’t happen the way it should, don’t hide under a rock or give up … just adapt! As I complete this article, I am reminded that my term as your president is ending in September at the NAMB National Conference. With eight months to go, I am not giving up. I will continue to adapt to what we have and fight for what you need. I promise that my board of directors and committees will continue to fight for what is right and for a level playing field. But I must admit, I need your help. Without members, Washington, D.C. will never let us be on an even keel. So join today. It will only cost you $1 per week to help. Sincerely,

Donald J. Frommeyer, CRMS, President NAMB—The Association of Mortgage Professionals president@namb.org www.joinnamb.com


NAMB PERSPECTIVE Do You Want to Take the National Test Again? By Rocke Andrews, CMC, CRMS That is a possibility if you want to get licensed in a different state. Beginning April 1, 2013, the NMLS adopted a uniform state test portion to the national loan officer licensing exam. As of Dec. 15, 35 states had adopted it, with Nevada and New Mexico coming on Jan. 1, 2014. What this means is if you want to get licensed in these states going forward, you must take the national exam with the Uniform State

Test (UST) component. For a short period, until March 31, 2014, existing licensees may take a 25question test and if the score added to your previous national exam score is 75 percent, you will have been deemed to have met the testing requirement for licensing in these 37 states. After March 31, 2014, if you want to get licensed in any of these states, you must take the entire 125-question national exam and pass with a score of 75 percent or better. So, if there is a possibility you may ever want or need to be licensed in another state, it makes sense to take the

UST Standalone Exam. It is basically a mini insurance policy costing $33. The exam is given at the same testing sites and you register on the NMLS Web site just as you did before. Information is available on www.NMLS.org in the resource center. Click on “UST Info” at the top of the popular links on the right-hand side. There is a map of the states adopting the UST, there is information on registering for the exam, and guidance on the content tested for on the test. The material is primarily questions on licensing and the SAFE Act. The test is not that difficult, but requires brushing up on the material before going in. There are several prep classes out there, including on the mortgageeducators.com site for $59. Now, once you pass the UST standalone exam, it takes a few days for the

NMLS to process your combined score and send you a confirmation e-mail. Once this is done, then you must click on licensing requirements for whichever state you want to get licensed in. You must still apply to each state and send in the forms and required fees to make sure you meet all the other requirements for licensing in that state. But, the good news is you will have met the testing requirement for the majority of states and do not have to take that dreaded 125-question national exam again. Rocke Andrews, CMC, CRMS of Lending Arizona LLC in Tucson, Ariz. is vice president of NAMB—The Association of Mortgage Professionals and NAMB Education Committee Chair. He may be reached by phone at (520) 886-7283 or email randrews@lendingarizona.net.

2014 NAMB Legislative & Regulatory Conference Sunday-Tuesday, March 2-4 Hilton Garden Inn Capitol • 1225 First Street NE • Washington, D.C. The 2014 NAMB Legislative & Regulatory Conference will be held Saturday-Tuesday, March 2-4 in Washington, D.C. This is a “must-attend” event for all mortgage professionals. Last year, more than 10,000 real estate agents attended NAR’s Lobby Day. This year, NAMB would love to get 1,000 mortgage professionals to D.C. to help NAMB lobby on Capitol Hill. Join NAMB as the association rallies to fight for consumers, small business and mortgage professionals everywhere.

Program of events

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(Subject to change) Main sponsor is Provident again! 11:00 a.m.-1:00 p.m.....NAMB Board of Directors Meeting

8:30 a.m.-8:45 a.m. ....Opening Remarks The day begins with opening remarks from Donald J. Frommeyer, CRMS, NAMB President and Herman Churchwell of Provident Funding.

Noon-6:00 p.m. ..........Registration

2:00 p.m. ..................Compliance Symposium: Policies and Procedures The “Policies and Procedures” portion of the Compliance Symposium will address what policies are required for your office; the challenges of implementation; regular reviews and updates; and wrap up with a question and answer session. 3:15 p.m. ..................Compliance Symposium: Regulator’s Examination The “Regulator’s Examination” section of the Compliance Symposium will address compliance examinations, their scope and purpose; how to prepare for a visit from your regulator; and wrap up with a question and answer session.

10:30 a.m.-11:45 a.m. NAMB’s QM Policy Discussion Topics covered will include lender-paid broker company compensation strategy, FHA and GSE issues. Noon-1:00 p.m. ..........Break for Lunch 1:30 p.m.-2:30 p.m.......Keynote Address: Richard Cordray, Director of the Consumer Financial Protection Bureau (Invited) 2:45 p.m.-3:45 p.m. ....2014: The Comeback Year for Mortgage Brokers Special session presented by Raj Date of Fenway Summer 4:00 p.m.-5:00 p.m. ....Advocacy Day Preparation 6:30 p.m.-8:00 p.m. ....PAC Fundraising Reception

4:30 p.m. ..................Compliance Symposium: Making Compliance Part of Your Business Model This portion of the Compliance Symposium will address: Managing the daily compliance needs of your office; on-site or off-site compliance; third-party compliance services; and conclude with a question and answer session. 6:00 p.m.-7:30 p.m. ....NAMB Delegate Council Meeting

Monday, March 3

Tuesday March 4 7:00 a.m.-9:00 a.m. ....Lobby Day Registration 9:30 a.m.-5:30 p.m. ....Lobby Day Visits to Capitol Hill 6:00 p.m. ..................Open Discussion on Your Visits Meet with the NAMB Board in the Hotel reception area and review your visits with your legislators.

7:00 a.m.-6:00 p.m. ....Registration 7:30 a.m.-8:30 a.m. ....Breakfast

For more information on the 2014 NAMB Legislative & Regulatory Conference, call (972) 758-1151, e-mail membership@namb.org or visit www.namb.org.

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2:00 p.m.-5:45 p.m. ....Compliance Symposium Presented by Jonathan Foxx, Managing Director of Lenders Compliance Group; Alan Cicchetti, Director of Brokers Compliance Group; Michael Barone, Director of Lenders Compliance Group; and Joyce Pollison, Director of Lenders Compliance Group

8:45 a.m.-10:15 a.m. ..The Industry Gets Its QM On: MBA, NAR and NAHB Panel Discussion

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heard street ON THE

Our Heard on the Street column is a chronicle of events, changes and passages in the lives of the people and companies shaping the mortgage industry.

United Wholesale Mortgage Voted Tops Among Wholesalers in Q3 Volume

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United Wholesale Mortgage (UWM) has become the number one wholesale lender in the country in origination volume as ranked by Mortgagestats.com for the third quarter of 2013. UWM has been growing at a rapid rate over the past several years and has now achieved the top slot for the first time ever. “We’ve been intensely focused on getting our business to this level of growth from the beginning. Our hard work, along with the trust and valued business of our brokers, has now officially catapulted us to the number one spot,” said Mat Ishbia, president of UWM. “We developed a unique business model in how we interface with our brokers that is completely driven by a highly service-oriented approach to customer service that clients laud as being second-to-none.” UWM also attributes their success to their innovative offerings, which supports their commitment to partnering with each and every client. Notable 2013 releases include UWM Connect, the Income Calculator, free customizable marketing, a complimentary Account Success Report (ASR), enhancements to UWM’s eligibility and pricing system (Easy Qualifier 2 [EQ2]), and the newly released Flex Term, which is a pick-your-term amortization product. The company is constantly innovating, rolling out new programs, and developing solutions that assist its broker community. The lender leverages leading proprietary technologies that it built itself, which helps the company operate more efficiently and effectively, and offers brokers leading Web-based tools that help them be more successful. Earlier this year, UWM moved more than 1,200 employees into a new corporate headquarters with more than 140,000 square feet of office space. Company officials say the centralization of its divisions and employees has

aided greatly in creating an efficient and rewarding work environment that is conducive to collaboration and expansion.

Lenders Compliance Group Announces Launch of Risk Management Firm for Servicers Lenders Compliance Group Inc. (LCG), a nationwide risk management firm, has announced the launch of Servicers Compliance Group Inc. (SCG), a full-service mortgage risk management firm specializing exclusively in outsourced mortgage servicing compliance and offering a full suite of support services to servicers and subservicers. Servicers Compliance Group, as an affiliate of Lenders Compliance Group, builds on existing tools, processes, subject matter experts, risk assessments, and resources to provide a “best practices” approach to residential mortgage servicing compliance. Servicers Compliance Group’s Web site (www.ServicersComplianceGroup.com), shows that the firm offers guidance and services that are specific to the unique needs of mortgage servicers, by providing cost effective compliance guidance, and especially in the important areas of CFPB Servicing Standards, Servicer Quality Assurance, and all aspects of Mortgage Servicing Compliance. “Over the years, mortgage servicers have had only their competitors, associations, various publications, and rather expensive professional firms to turn to for compliance guidance. That era has now ended with the advent of Servicers Compliance Group! For the first time, servicers and subservicers have cost-effective access to subject matter experts, compliance attorneys, professional consultants, and a wide

array of supportive compliance services,” said Jonathan Foxx, president and managing director of Lenders Compliance Group and also its new affiliate Servicers Compliance Group. According to media reports, SCG’s fees, whether monthly or project-based, are said to be economical relative to most compliance support, audit, due diligence, and review firms that provide such high-level compliance guidance. Foxx stated that “servicers and subservicers have largely been dependent on law firms and compliance consultants. They have had no support from a full-service risk management firm, most especially in preparing for the compliance challenges they face each day. Our view is that establishing Servicers Compliance Group and making it affordable brings servicers the kind of reliable and expert guidance that is needed to comply with new and existing laws, policies, procedures, and operations, involving the servicing of residential mortgage loans.” “Just like years ago when we answered the need for lenders to retain cost-effective mortgage risk management, we are now answering the same need on the part of mortgage servicers,” said Foxx. “We have the people, resources, and expertise to provide servicers with the kind of care and attention that they expect.”

Industry Vet Joe Amoroso Launches Indeed Abstract New Consumer Financial Protection Bureau Qualified Mortgage (QM) rules have lenders looking for nonaffiliated title companies they can trust to see their clients through the closing process. To solve the need of lenders looking for title and settlement service providers that can deliver personal, localized service in markets across the

country, mortgage-industry veteran, Joe Amoroso, has launched Indeed Abstract. Built with a lender-centric mentality, Indeed Abstract prides itself on offering lenders and their customers the personalized service and reliability that quality local title companies are known for, but on a national level. Through his nearly 30 years of experience in the mortgage industry, Amoroso has seen firsthand how a commitment to customer service can help lenders strengthen their reputations and referral business from satisfied customers. Mindful that home buyers often need to operate outside of the traditional nine-to-five workday, Indeed Abstract has implemented a nightline to assist with evening and weekend closings. To make the entire process as easy as possible for its customers, Indeed Abstract also offers Web-based technology that allows for online ordering and 24/7 transaction monitoring. Every order at Indeed Abstract is managed by an in-house coordinator to ensure a smooth and trouble free closing process and an extra level of personalized service. “New QM regulations are not making things any easier for lenders or their customers. Lenders and brokers in particular need to be very aware of these changes and the potential impact regarding the service providers they utilize. With this in mind, Indeed has developed its “Best Practices Policy” to ensure quality, confidence and integrity in our relationships with our business partners,” commented Amoroso, who will serve as managing director for Indeed Abstract. “With Indeed Abstract, the focus is on making things as easy as possible for the lender and their customers. One of the few constants you can bet on in our industry is that a focus on customer service separates the best from the rest over the long term.”

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LYKKEN ON

leadership

Creating a Winning Culture: Character By David Lykken

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“These are the times that try men’s souls.” Thomas Paine once said, “The summer solider and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands by it now, deserves the love and thanks of man and woman.” These often-quoted words apply aptly to patriotism, but they also have particular relevance to business. Everyone appears to be successful when the sun is shining. When the economy is going strong, the market is up, and the industry is thriving, the best and worst of mortgage professionals can eke out a living. It’s the downturns, the recessions, and the unwelcome industry shifts that reveal who the true winners are. When it’s no longer all sunshine and rainbows, who’s left still fighting the good fight? That’s what counts.

We see that, when times get tough, there are many companies and loan originators that stop producing. Their revenues shrink. Their profits shrink. Their market share shrinks. And they find consolation, if not comfort, in the fact that they can blame the economy. It’s happening to everyone else too, right? Well, not exactly. Despite troubling economic times, there are still those companies who seem to pull through and even thrive when times are hard. There are loan originators who actually grow when the market is down. How do they do it? What separates the companies that fail in tough times from those that succeed? What’s the trick? When you look at the differences between successful companies and companies just riding the waves of a good economy, there is always one thing that stands out: The company culture. It isn’t necessarily that there is one “right” culture, but it can clear-

ly be seen that there are bad company cultures and there are good ones. So what makes a culture good or bad? I don’t know very many organizations that have set out to create bad corporate cultures. That just doesn’t happen. What does happen is this: Companies fail to be proactive in creating good corporate cultures and they end with bad corporate cultures as a result. You cannot plot a course to where you want to go until you know where you’re at. Culture is knowing who you are. If you aren’t deliberate about defining where you stand and creating the right environment for success, you’ll end up with whatever culture happens to develop on accident. You can’t not have a culture. If you don’t create one, one will be created for you. It’s up to you as to whether or not you’ll set the direction. A good company culture will play to its strengths. As a leader, you will know what your organization is best at doing. Build your culture around that. Don’t compromise and try to be all things to all people. Being all things to all people amounts to being nothing to anybody. When you focus on your core competencies, you give your team something to rally behind. Create a community in which employees feel like they’re part of something. Don’t just motivate people with money—that only goes so far. Motivate them with purpose. Don’t just allow them to do their jobs. Allow them to build something bigger than themselves. For those who don’t fit with your organization, for whatever reason, don’t be afraid to let them go. Help people go be successful

somewhere else if they aren’t being successful with you. As you go about creating a winning culture in your organization, there are some key items you’ll need to consider. I call them “The 7 Cs of Leadership,” and I’ve written about them before. But, for this article, I just one to cover one. It is the foundation upon which any solid culture is built. Without this one thing, everything else loses its meaning. What am I talking about? I’m talking about “Character.” A culture with strong character is a culture with integrity. It’s creating a space in which people feel comfortable doing the right thing and uncomfortable doing the wrong thing. In your organization, do people feel comfortable pushing the legal and ethical limits to secure a deal? If so, your organizational culture is probably weak in character. You want to hire people with solid character and then nurture the environment that encourages them to make the right decisions. Successful organizations are founded upon character. Such organizations succeed because they are able to keep the trust of their employees, customers, investors and communities. When you deal with someone who has character, you know exactly what you’re getting. That’s the kind of organizational culture you want to develop. There is a famous story I would like to share with you that conveys the point I’m trying to get across about the importance of character. A CEO was nearing retirement and he wanted to choose a worthy successor for his company. Instead of choosing


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just about anything. one of his children or Sometimes, “characsomeone from the “When you ter” can be somewhat board of directors, he of a fuzzy concept to decided that he would look at the understand. But it give his executive team really all comes down a shot. On the day that differences to values. Character is he announced his between an anchor that allows retirement, he gave you to determine the each member of his successful right course of action executive team a pot of soil containing a seed. companies and when you must make a decision. If you have He told them that he would allow each of companies just character, you will know what to do. You them a month to nurture the seed into a riding the waves won’t even have to thinking about it, plant. When the month of a good because you will be was up, he would make his decision. economy, there driven by your values. But character isn’t just Steve, one of the reactive; it’s also CEO’s vice presidents, is always one proactive. Character is tried all he could to get the plant to grow. He thing that stands also a compass that helps you understand watered it three times out: The what new projects to a day. He sat it by the undertake, which new window so that it could company culture.” people to take on as get as much sun as pospart of your team, and sible. He even got some special fertilizer from a local so on. It is both the foundation that garden center. But, no matter what keeps you grounded and the springhe did, he couldn’t get even a single board that pushes you forward. Speaking of the Christian faith, sprout to come out of the dirt. When the month was up, he had to return St. Francis of Assisi has famously to his boss with nothing but a pot of said, “Preach the gospel, and if necessary, use words.” It’s the same soil. When he entered the boardroom way in the mortgage business. If you on that day, he instantly felt his stom- are creating a culture founded on ach turn. All of the other executives character, people will know it by had somehow managed to grow a the way your business is run. You beautiful array of plants. There were won’t even have to say anything. On all sorts of different colors, arrange- the other hand, advertising your ments, shapes and sizes. How, he integrity might not be such a bad wondered, had his turned out so thing. It will make the promise pubpoorly? At the front of the room, the lic and give you and your team CEO called everyone to his attention. something to which you must be He said that, based upon what he had held accountable. There are many things that help seen in the room, he had made his decision as to who would be the next organizations create a winning culCEO. Steve swallowed hard. Not only ture and survive tough economic did he not have a shot at being the conditions, but the foundation is next CEO, but he would probably be always character. Organizations fired. But then something amazing founded on poor character will most likely end up facing some reghappened. “Steve,” said the CEO, “I have cho- ulatory struggle. But, even if they sen you to be my successor!” Every can evade all legal issues, customers jaw in the room, including Steve’s, hit just don’t want to do business with the floor. How could this be possible? people who don’t have integrity. The CEO continued, “You see, in Build an organization founded on every pot of soil that I gave to each character, and the rest will likely member of the executive team, there take care of itself. was no seed. There was only dirt. Therefore, nothing could have possi- David Lykken is president of mortgage bly grown. Each of you have shown strategies and managing partner with me that you care more about getting Mortgage Banking Solutions. He has ahead than you do about maintaining more than 35 years of industry experiyour integrity. Steve is the only one ence and has garnered a national repwhose character has withstood the utation, and has become a frequent test. More than anyone, he deserves guest on FOX Business News with Neil Cavuto, Stuart Varney, Liz Claman and to be my successor.” Can you imagine what the result Dave Asman with additional guest would be in an organization in which appearances on the CBS Evening News, everyone was willing to lie and cheat Bloomberg TV and radio. He may be to get ahead? Surely, that’s a culture reached by phone at (512) 977-9900, that’s headed for destruction. A cul- ext. 10, or e-mail dlykken@mortgageture built on strong character and bankingsolutions.com or dlykken@mbsintegrity, however, will withstand team.com.




HUD Issues Final Rule on Qualified Mortgages By Melanie A. Feliciano Esq.

Melanie A. Feliciano Esq. is DocMagic Inc.’s chief legal officer and currently serves as editor-in-chief of DocMagic’s electronic compliance newsletter, The Compliance Wizard. She received her JD from the Georgetown University Law Center, and is licensed in California and Texas. She may be reached by phone at (800) 649-1362 or e-mail melanie@docmagic.com.

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On Dec. 11, 2013, the U.S. Department of Housing & Urban Development (HUD) issued its final rule http://alturl.com/gd42a on qualified mortgages (QM) for single-family residential loans. The Dodd-Frank Act required HUD and three other federal agencies to prescribe regulations for QMs that they will insure, guarantee or administer. This final rule replaces the Consumer Financial Protection Bureau’s (CFPB's) temporary QM definition for FHA loans. Until VA and USDA issue their own QM definitions, the CFPB's temporary QM definition will apply. The HUD QM rule provides that for a single-family mortgage to be insured under Title II of the National Housing Act, a QM may not exceed the total points and fees threshold established under the CFPB’s QM limit in 12 CFR 1026.43(e)(3) as of Jan. 10, 2014. In addition, the HUD rule also establishes its own definition of a rebuttable presumption QM and safe harbor QM. A loan transaction is a rebuttable presumption QM if the annual percentage rate (APR) exceeds the average prime offer rate (APOR) for a comparable mortgage, as of the date the interest rate is set, by more than the combined annual mortgage insurance (MI) premium and 1.15 percent for a first-lien mortgage. A loan transaction is a safe harbor QM if the APR does not exceed the above APOR threshold. Title I (Property Improvement and Manufactured Home Loans), Section 184 (Indian Housing Loans), Section 184A (Native Hawaiian Housing Loans), Title II (Manufactured Housing Loans) insured mortgages and guaranteed loans are deemed safe harbor QMs that meet the ability-to-repay (ATR) requirements under 15 USC 1639c(a). Home Equity Conversion Mortgages (HECMs) under Section 255 of the National Housing Act and mortgage transactions exempted by the CFPB under 12 CFR 1026.43(a)(3) as of Jan. 10, 2014, are exempt from coverage of HUD’s QM rule. The final rule becomes effective for case numbers assigned on or after Jan. 10, 2014.

SPONSORED EDITORIAL

heard on the street

continued from page 22

Equity Loans Launches Correspondent Lending Division Equity Loans LLC has announced that it has launched a correspondent lending channel and to support this new division, Equity Loans has made two additions to its executive team, Brian Gillespie as vice president of the Third Party Originator (TPO) Production Channel and Greg Nolte as vice president of the TPO Production Channel. By expanding into the correspondent business, Equity Loans provides mortgage bankers that have correspondent lines greater flexibility in the interest rates they offer their borrowers, as they are not hindered by the pending qualified mortgage regulations in terms of compensation. As the industry returns to a more purchase-driven market, it is critical that lenders provide borrowers with the best pricing options to remain competitive. This expansion into the correspondent business follows Equity Loans’ entry into the wholesale market earlier this year, which now includes broker business from across the country. As other wholesalers exit the market due to increasing expenses, growing compliance costs and looming regulations, Equity Loans will continue to support the broker market and provide a higher level of service and attention to detail that the larger players cannot offer, helping brokers navigate the changing market landscape. Furthermore, Equity Loans has established a partnership with a warehouse lender that enables brokers to convert to bankers with only a $250,000 net worth. To support this expansion, Equity Loans welcomes financial industry veteran Gillespie, who has more than 22 years of industry experience and has spent the last 18 years working specifically in the wholesale and correspondent mortgage industry. Prior to joining Equity Loans, Gillespie served as vice president and Northeast regional sales manager for Freedom Mortgage, where he was responsible for wholesale and mini-correspondent production in the Mid-Atlantic and New England. In this position, Gillespie was also responsible for the recruitment, training and supervision of Freedom Mortgage’s wholesale account executives. Additionally, Gillespie previously served as an account executive for Equicredit Corp. and as a branch manager for Fleet Finance. Nolte has also joined the Equity Loans team, bringing more than 15 years of mortgage industry experience to support these new channels. Previously, Nolte served as the national retail branch recruiter for MCS Mortgage Bankers where he recruited, trained and maintained talent for a 14-state

region, as well as supported the company’s marketing and investor efforts. Nolte’s previous experience also includes marketing and recruiting positions with AmeriFirst Home Mortgage; leading the entire East Coast for Ownit Mortgage Solutions Wholesale; and regional vice president for First Franklin Financial. “As the new qualified mortgage rules are finalized at the beginning of next year and compliance regulations become increasingly strict, our partnerships are more important than ever,” said Kunjan ‘KP’ Patel, CEO of Equity Loans. “Our expansion into the correspondent and wholesale channels will not only be crucial to expand Equity Loans’ footprint, but to help our partners grow in a new market environment. We are confident that Brian and Greg’s deep knowledge and expertise of the wholesale and correspondent industry will successfully support our expansion and we are looking forward to having them join the Equity Loans team.”

United Shore Financial Caps Wins Award for Its “Abstract Neighborhood” Design Aesthetic United Shore Financial Services (USFS) has been named a “Best of Troy” award winner for 2013. The recognition, the first for USFS, was given during the Troy Chamber’s annual Holiday Luncheon at the Detroit Troy Marriott. USFS moved its 1,200 employees to Troy early in 2013 combing many offices into one national headquarters. The building reflects the company’s culture. Inspiring collaboration and innovation in an open floor plan, the building was designed as an “abstract neighborhood” to stay true to USFS’ business of residential lending. The 140,000square-foot space features many unique contemporary elements in the exposed duct work and beams, lounge furniture, and a vibrant color palate to encourage team work, communication and innovation. Street signs identify departments. There are also sidewalks complete with manhole covers and 23 conference rooms named after surrounding cities including Troy, Birmingham and Detroit. “We wanted to create an amazing place for our people that would excite and inspire them,” said Mat Ishbia, USFS president and CEO. “Great people in a great location is a formula that’s tough to beat. We’re honored to earn the recognition as a Best of Troy.” The USFS headquarters features many amenities to retain and attract talent including an expanded cafeteria, continued on page 36


Mo’ Money

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By Eric Weinstein

mortgages. That is still how most people learn to do loans. Not me. I read that manual, memorized it and did everything it said. Four years later in 1995, I started my own mortgage company from my den. By 2003, we were the largest mortgage broker in the country. This is exactly how I did it. Now, you are reading my article in a highly respected mortgage industry magazine. Come on, you are way smarter than me … you can do it as well. The only obstacle in your way is knowledge. “The more you know, the more you make.” It’s up to you how much you want to make, because it is up to you how much you want to learn. Hit the books! Mo’ smarts means mo’ money … go for it! Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. These days, Eric is semi-retired, doing mortgages by referral only. As he likes to put it, “He is either saving people money per month or helping them buy a new home. What a great job!” He may be reached by phone at (703) 505-8692 or email eweinstein4u@gmail.com.

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know everything there is about originating and closing mortgages, you are ready to start TO LEARN about opening your own shop. Here is another knowledge explosion you will need. There is licensing, IT, accounting, compliance and all the other things a loan officer never really has to consider or absorb. After that, it will take about a year perfecting procedures before you are even ready to consider hiring your first employee. There are no shortcuts. If you hire someone to do this part, you will not make enough money yourself to stay in business. You have to learn to do it yourself. How can you possibly supervise someone if you have no idea what they are doing? Not a good idea. In 1991, I got into the mortgage industry working for some guy. When I first started out, I didn’t even know there was a “T” in the word “MORTGAGE.” My boss was not a very good teacher. When I asked him how to do something, he threw a 500-page loose leaf binder at me with all the products and procedures from a wholesaler with which we worked. Yes, there were no computers back then … it all came in a book. Now, I didn’t know much about mortgages, but I knew how to read. So I read it from cover to cover and read it again. I turned out to be the expert in the office because no one else bothered to read it. They were all taught “apprentice” style—watching someone else do

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To misquote my favorite country song: “I like my truck; I like my girlfriend, but I LOVE making money.” So you are a loan officer like me, how do you make more money? Here … get up on Santa’s lap and I will tell you. “The more you know, the more you make.” That was a truism I coined when I owned Carteret Mortgage and would tell my employees. It boils down to simple economics: The more knowledgeable the loan officer, the more money they would make me (and themselves). Therefore, I would have to pay them higher to keep them. Let’s look at two business models … A mortgage company that buys leads and pays a low split versus a mortgage company where employees work from home and get a higher split. A mortgage company with a large fixed overhead including buying leads, desks, office space, phone systems, etc. has to pay for it somehow. Invariably, it comes from the loan officer’s split. In return, the loan officer receives strong support like managers, processors and the like. Typically, this is in a centralized location. If you rate a loan officer’s knowledge on a scale from one to 10, this is an excellent training ground if you are one of those one to six loan

officers. Call it tuition. They get lower pay, but they learn the basics of the business all the way up to processing, submitting and closing a file. Once you are a seven through nine, it makes more economic sense to work for a place with a higher split, but less support. At this point, if you know how to get your own business, process and close your own loans, it really doesn’t pay for you to support those other clods who don’t. There is nothing in an office you cannot set up at a home office. That is, except maybe the gossiping around the coffee machine and potential sexual harassment litigation as you make advances toward a fellow employee. Granted, working from home is not for everyone. I have met terrific loan officers who just insist they need an office. This may be because they just cannot miss that next episode of “Oprah,” they crave human companionship during the day or they have a spouse with three crying babies at home. Either way, to my mind, I cannot see paying a huge part of my split for this luxury. But that is why BaskinRobbins comes in 31 flavors. Everyone is different. Personally, I think it is just cheaper to buy TIVO, a dog and a vasectomy. I’m just saying … For those very few people who learn their way to be a glorious 10, the next step is to open your own shop. Once you


tales from the closing table

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By Andrew Liput The mortgage closing transaction is the single largest financial transaction in the lives of most consumers, and it is also the riskiest stage of the mortgage process for lenders. While the vast majority of lawyers and notaries and title agents are experienced, ethical and diligent professionals, for some the role of closing agent is too tempting a lure for selfish criminal intent. This monthly column addresses the good, the bad and the ugly … for educational and entertainment purposes. December was an interesting month for mortgage fraud …

Which side of the law are you on anyway? l Two deputies of the Los Angeles County Sheriff’s Department were convicted in federal court for their roles in an $11 million mortgage fraud scheme. l A Kansas City special agent for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), pleaded guilty in federal court to making false statements to FBI agents in regard to an $800,000-plus mortgage fraud scheme. l A Chicago former police lieutenant who allegedly played a role in a

mortgage fraud scheme pled guilty to making false statements in a tax return.

Hey … that’s not in the script! l Two of the stars of the Bravo television show, “The Real Housewives of New Jersey,” were indicted on 41 counts of bank fraud and loan application fraud. The Office of the Comptroller of the Currency (OCC) joined the Consumer Financial Protection Bureau (CFPB) in announcing a comprehensive vendor management requirement for supervised banks that in some regards exceeds even what the CFPB seems to be expecting. The guidance, which was prompted by recent audits and enforcement actions, reiterates the OCC’s existing expectations for third-party vendor management. The directive, replete with a “risk management triangle” graphic to aid interpretation, is applicable to closing agents. Banks can have their own process; however, third-party oversight of some kind is expected as a quality control (QC) measure. With enhanced vetting and vendor management taking place, mortgage lenders and banks are coming across some disturbing situations. l A title agent, who had been disciplined less than a year ago for falsely issuing a title report on one

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underwriter’s paper, was reported to the agent’s licensing body for discipline, and in fact, was disciplined and fined for her actions. However, this incident did not stop one of the other big four underwriters from giving her an agency agreement where she is writing title today. When the agent’s past was discovered, a lender rejected the agent and required another agent to close the loan. An attorney provided his wiring information. When the account was verified, it was discovered that the account was not a trust account, but was a personal account in the attorney’s name. A title agency claimed that it was authorized to write policies for two major underwriters. However, when their status was checked, one of the relationships had been terminated six months prior. A title agency submitted their insurance certificate. It was discovered that the certificate had been altered to change (increase) the coverage amount. An attorney lost his license in a state, but reapplied for it after a few years and was allowed to be reinstated so that he had a current license on record. An investigation uncovered the original disbarment which was for his alleged participation in a real estate fraud scheme.

ALTA’s best practices program for title agents continues to offer a solid foundation for uniform risk standards for their members. The program creates operational guidelines to be verified by third parties as a reliable benchmark for quality risk management.

Five warning signs that you might need a new real estate lawyer 1. Your lawyer tells you that his last “transaction” was at the ATM in the liquor store. 2. When the real estate agents see your lawyer, they ask for their fees in cash. 3. Your lawyer brings an interpreter to read the loan documents to him so he can explain them to you. 4. Your lawyer takes off her shoes to figure out the totals on the HUD-1. 5. A swarm of FBI agents are waiting outside his office for the closing to finish. Andrew Liput has been a corporate, real estate and banking attorney for more than 25 years He is the founder, chief executive officer and president of Secure Settlements Inc., the first data intelligence and risk analytics firm to offer specialized vendor management services addressing settlement agent risk to mortgage lenders and banks nationwide. He can be reached by e-mail at aliput@securesettlements.com.


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N A T I O N A L

M O R T G A G E

P R O F E S S I O N A L

M A G A Z I N E ’ S

economic commentary

CAN HOUSE PRICES CONTINUE RISING? By Dave Hershman ell after months and months of speculation, the Federal Reserve Board has announced the start of their “tapering” program in which they will reduce the amount of their purchases of government and mortgage-backed securities (MBS) by $10 billion per month. Starting in January, the Fed will purchase $75 billion dollars monthly instead of $85 billion dollars. This program was instituted during the financial crisis both to keep long-term rates lower and provide some stability in a

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mortgage market which was devastated by the crisis. By lowering the amount of purchases, the Fed is officially proclaiming that America is well on the road to recovery. This does not mean that the Fed is about to raise interest rates. What it means is that the Fed will be exerting less influence over long-term rates which are of utmost importance to consumers because fixed-rate mortgages are influenced significantly by the direction of long-term interest rates. The Fed has been going out of its way to say this does not mean that they are ready to raise short-term rates. The Fed has emphasized its commitment to keep

short-term interest rates “exceptionally low” until either the unemployment rate falls to around 6.5 percent or the inflation rate exceeds 2.5 percent a year.

recovery and our future. Some of this optimism is rooted in facts and some of this optimism comes from sentiment.

Why is this good news?

For the first time in five years, the real estate market participated and is contributing in the nation’s economic recovery. When homeowners feel wealthier because of rising home values, the entire economy benefits. It is no coincidence that the economy grew at stronger pace in each of the past four quarters—including a robust 4.1 percent growth rate in the third quarter. Employment growth has picked up and this job growth is picking up within a variety of sectors—including state and local governments—which is a sector that was laying off tens of thousands just a few years ago.

First the facts Well, the stock markets rallied decisively on the news. The economy is recovering and this is a good thing. Long-term rates rise when the economy is stronger. It has been five years since the depth of the recession was upon us. For five years, we have been recovering. The recovery has been painful and slow with many starts and stops. Yet, as we approach 2014, there seems to be more optimism regarding the status of the economy

About those feelings For a long time, I have been saying that this was a crisis of confidence. Confidence is a feeling. In general, we can see that consumer confidence has been rising as 2014 begins. There is even hope that Congress is starting to show stronger levels of bi-partisanship— which is a good thing with the debt limit issue about to hit in the first quarter of 2014. Confidence allows people to make important decisions, such as getting married and starting a family. Here is to a great 2014 for all, and hoping the growth in good feelings continue for the remainder of the year. 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 www.originationpro.com.


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Where Are Interest Rates Headed in 2014? By Robert Ottone hen I interviewed Lawrence Yun for a previous issue of National Mortgage Professional Magazine, he estimated that we are going to see a plateau in terms of unit sales, with an increase in price hovering around six percent. This isn’t a necessarily bad thing, considering the economy is recovering at a relatively steady rate, quantitative easing (QE) is estimated to be scaled back $10 billion at a time, something that sent a minor shockwave through Wall Street, stimulating growth and slight recovery, attributed to confidence in economic recovery. All in all, 2013 can be looked at as a solid year of economic stimulation, a “righting” of the ship in terms of getting America’s economy going again. Even though this is a far more dramatic instance, the 1930s saw a Depression-era mortgage crisis that resulted in high default rates and increasing loan to value ratios. While facts and figures from 80-plus years ago might not directly correlate to the current economic climate, it’s important to remember historical situations. In Kenneth Snowden’s 2010 paper, “The Anatomy of a Residential Mortgage Crisis: A Look Back to the 1930s” (http://tinyurl.com/k3787at), the author draws upon similarities of the then-current economic situation and the

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post-Depression era quite succinctly. Snowden’s paper discusses the Home Owners’ Loan Act of June 1933, which isn’t dissimilar to President Obama’s Home Affordable Refinance Program (HARP), in that it provided then-delinquent borrowers with better rates. Everything that’s old is new again, in the case of the mortgage crisis and economic downturn. A recent Wall Street Journal feature highlighted HARP’s success in 2013, amid troubling Obama legislation. But what does this mean specifically for interest rates? I was curious to hear from those in the industry regarding their estimates for 2014. “I don’t think we’ll see 30-year term mortgages in the threes anymore, we’re trending higher, but I think the Fed should let the economy recover (lower unemployment, etc.) before raising interest rates—let’s give people a chance to secure financing comfortably, especially with a new regulatory environment and controls imposed upon us,” said Mary McPhail, marketing manager with Vanguard Funding. “It seems that the ‘new’ regulatory approach to financing is more reactive than respon-

sive. We need an organic lift to the American lifestyle again and people will buy homes, even homes that need rehab, but at least we will stimulate the economy in its rightful order.” “Where rates ultimately end up at the end of 2014 is really going to depend on the Federal Reserve and how the economy performs throughout the year. Assuming the economy continues to get better and the Feds dwindle off from its bond purchasing program, we’ll see rates move past five percent by the end of 2014, with additional increases into 2015,” said Rob Pommier, senior vice president of strategic alliances for OpenClose. “One thing is for sure, rising interest rates are going to slow housing demand in 2014 and many first time homebuyers that were anticipating buying a house with a very low rate are going to have a tougher time getting into homes.” “I think everyone agrees that interest rates will rise and refis will fall—the question is by how much. We expect interest rates to hit close to 5.4 percent for a 30-year fixed by the end of 2014, resulting in more than a 25 percent

“All in all, 2013 can be looked at as a solid year of economic stimulation, a ‘righting’ of the ship in terms of getting America’s economy going again.”

drop in refis,” said Vladimir Bien-Aime, president and chief executive officer of Global DMS. A recent Ken Harney article highlighted increasing mortgage rates while also putting an emphasis on the potential rise in the relatively unpopular hybrid mortgage. Harney also estimates that rates could reach as high as 5.5 percent for the year. By exploring other options, such as a hybrid mortgage, an individual could find themselves in better shape than with the current slate of mortgage offerings, especially if rates climb as high as Harney predicts. Perhaps the rising rates will, in fact, create a new breed of renter, or perhaps, force individuals into making hasty purchasing decisions in order to potentially lock in their rate. Many estimate that, should the Fed hit their mark in tapering QE and the economy continue its upward recovery, mortgage rates could potentially remain below five percent, however; the probability of the Fed hitting both of their goals is low, so, rates will continue to spike. For now, unemployment rates are down to near seven percent. Interest rates aren’t horrific. Tapering has begun and as of now, things don’t look so bad … right? Robert Ottone is senior editor with National Mortgage Professional Magazine. He may be reached by phone at (516) 409-5555, ext. 314 or by e-mail at robertpo@nmpmediacorp.com.


Customer Satisfaction Still Drives the Industry By Phil Hall s 2014 begins, there is good news in regard to how consumers view the mortgage origination process. According to the J.D. Power 2013 U.S. Primary Mortgage Origination Satisfaction Study, customer satisfaction improved for a third consecutive year. The study, which works on a 1,000point scale, measured four factors in the origination process: Application/Approval Process; Loan Representative; Closing; and Contact. Overall customer satisfaction averaged 771 (on the 1,000-point scale in 2013, an increase from 761 in 2012 and 747 in 2011. Overall satisfaction among first-time homebuyers outpaced repeat buyers (772 to 757), while those seeking to refinance were more satisfied than those making a home purchase (775 to 765). J.D. Power also named Quicken Loans as being among the highest primary mortgage lenders, scoring 841 out of 1,000 points. The Detroit-based lender has held the top spot on the annual J.D. Power study since 2010. BB&T, which held the number one spot back in 2009, ranked second in this year’s study, which was based on the responses of 3,267 customers who either originated a new home loan or refinanced during the past 12 months. Across the industry, the results of an increased level of customer satisfaction was reaffirmed as the “new normal” of mortgage banking. “Now more than ever, excellence in customer service is critical to a lender’s success,” said Mat Ishbia, president and chief executive officer of Troy, Mich.based United Wholesale Mortgage (UWM). “Providing brokers and loan officers with an elite level of service will translate to a positive and memorable experience for their borrowers. To accomplish this, lenders need to provide unparalleled communication and consistency as well as control to their clients. In a constantly evolving industry, lenders who place an emphasis on service are going to come out on top.” Ishbia notes that the transition from a refi-dominated market to a purchasedriven market offers distinctive challenges in maintaining quality control. “As an originator, you have to continually think of new ways to market yourself when there is an impending market shift or new trend development,” said Ishbia. “As rates inch up and refi volumes decrease, originators need to ensure that they have built a reputation for providing next-level service. This can come in the form of quick, accurate answers for borrowers, forging

A

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J.D. Power 2013 U.S. Primary Mortgage Origination Satisfaction Study

SM

Customer Satisfaction Index Ranking (Based on a 1,000-point scale) 650

750

850

Quicken Loans

841

JDPower.com TM Power Circle Ratings for consumers

lllll

BB&T (Branch Banking & Trust Co.)

798

llllm

U.S. Bank

783

llllm

PNC Mortgage

778

lllmm

Chase

773

lllmm

Industry Average

771

lllmm

768

Wells Fargo Home Mortgage

lllmm

CitiMortgage/Citibank

764

lllmm

SunTrust Mortgage

761

lllmm

Fifth Third Mortgage

756

Provident Funding Associates Bank of America

Power Circle Ratings Legend l l l l l Among the best

752 734

lllmm lllmm llmmm

Flagstar Bank

724

llmmm

PHH Mortgage

724

llmmm

l l l l m Better than most l l l m m About Average l l m m m The rest

Source J.D. Power 2013 U.S. Primary Mortgage Origination Satisfaction StudySM

relationships with real estate agents, implementing lead generation software/services, and aligning yourself with mortgage lenders that place service and quality as being the most important component of their value proposition. Your lender should be your secret to success when it comes to service. They need to deliver on their service commitments so that you can provide the best for your borrowers.” Corey Dubnoff, president of Parsippany, N.J.-based American Financial Resources Inc. (AFR), notes that high-quality customer service will be the driving force for the industry in the years ahead. “Consumers today are more powerful than ever,” said Dubnoff. “With the use of online social media and consumer protection/advocacy sites—government and non-government regulated—the consequences are real. Participants in this industry better have a culture of good customer experiences or they will not be around for very long.”

Dubnoff adds that originators need to be proactive in ensuring that customer satisfaction remains strong. “Picking up the phone and spending a few minutes to make sure everyone is on the same page is vital,” said Dubnoff. “Too many times, I see e-mail chains that end up going nowhere that take up so much time and energy that had they picked up the phone to have a conversation it would have saved time and would have most likely accomplished so much more.” Although the mortgage broker industry was not part of the J.D. Power research, the results of the study comes as no surprise to Don Frommeyer, president of NAMB—The Association of Mortgage Professionals and senior vice president at Amtrust Mortgage Funding in Carmel, Ind. According to Frommeyer, customer satisfaction is an integral part of the mortgage broker’s daily operation. “We do our own customer satisfaction survey on each of our loans,” said Frommeyer. “Our satisfaction levels

have also increased. A lot of this has to do with the fact that as mortgage brokers, we find the results that are right for each customer and put them where they need to be - whether it is a conventional loan or an FHA loan or a VA or a USDA product.” “In a lot of banks,” Frommeyer continued, “when a person applies for a loan, they often use a teller, and the loan is then passed on. With a broker, the borrower deals with that broker throughout the loan transaction.” Frommeyer also observed that today’s mortgage brokers rely very heavily on high quality customer care—both by design and by default. “Forty-five percent of mortgage brokers are still around compared to 2007,” said Frommeyer. “Those that remain are the best of the best.” Phil Hall is senior editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.


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nmp newsflash

CFPB wants to ensure that housing counselors understand the new federal protections so that borrowers can pursue all possible options before beginning the foreclosure process. The CFPB will also be offering training on the rules for housing counselors. l Mortgage Tips: The CFPB is providing a number of different tips on new rights under the new rules for homebuyers and homeowners at every stage of the mortgage process— from taking out a loan to paying it back. The tips also include recommendations for troubled borrowers facing foreclosure. l Answers to Consumer Questions: The Bureau has published mortgage-related questions to AskCFPB, an interactive online tool designed to answer consumers’ most frequently asked questions in plain language. l Consumer Tools: The Bureau’s Website offers a tool to help consumers find local housing counseling agencies to answer their questions or address their concerns. Consumers that have an issue with

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NAPMW REPORT

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heard on the street

consumer financial products or services, such as a mortgage, can also submit a complaint. l Factsheets on the Rules: The CFPB has published factsheet with an overview of all of the new consumer protections in the bureau’s mortgage rules. The CFPB has also published a summary of the new procedures to facilitate borrowers’ access to foreclosure avoidance options.

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.

REMN Continues to Build Upon Its West Coast Presence Real Estate Mortgage Network Inc. (REMN) continues to strengthen its West Coast presence by expanding its team of associates across Southern California. The company recently opened a new Orange County retail location in Irvine, Calif., in addition to growing its San Diego footprint by expanding its Carlsbad branch. With an eye on additional growth across Southern California, REMN expects to further increase its presence in the area with plans for new branches in Orange County, Los Angeles and other key West Coast markets in 2014. To accommodate their recent growth, REMN’s Carlsbad location will be shifting office space within their existing building to another suite. Led by Laurie Peterson, the office’s branch manager, REMN’s Carlsbad location has long been the home of some of the company’s top-producing mortgage loan originators. REMN’s new Orange County branch is located in Irvine, Calif. Under the direction of Sales Managers Robert McCormick and John Soricelli Jr., both of whom are also experienced mortgage loan originators, this office is staffed by continued on page 38

2 0 1 4

Which Are You? By Mary Ellen Heathcote, MML, CMI, CME With 2014 a reality and 2013 in the background, it seems natural to look back and analyze what level of performer we were this past year and see if we are content with the results. There are six readily recognized levels of performance:

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:

continued from page 26

state-of-the-art workout fitness center, dry cleaning pick-up/drop-off services, Starbucks, valet parking, 24-hour selfserve convenience store, and modern designs normally associated with a high-tech Silicon Valley company. For more than 40 years, the Troy Chamber of Commerce has recognized the outstanding physical investments made by businesses in the city. “The Best of Troy awards recognize completed projects that best exemplify financial investment and aesthetic enhancement within the city of Troy,” explained 2013 Best of Troy Chair Tom Krent, Aflac Agent. “We all know how vital these investments are to the continuing prosperity of our city.” According Krent, the judging committee reviewed 46 properties to come up with eight honorees for 2013. Criteria included function, use of space, uniqueness, aesthetics and an overall “wow” factor. The “Best of Troy” award adds to a recent string of awards recognizing USFS as a “Best” place to work. In addition to being named a Top Workplace by the Detroit Free Press and one of Metro Detroit’s 101 Best and Brightest Companies to Work For for the second consecutive year including an Elite Award for Employee Achievement and Recognition, USFS has been recognized as one of the National Best and Brightest Companies to Work For and is ranked first for Elite Award Winners in the Large Business category.

J A N U A R Y

l l l l l l

Peak Capacity Average/Adequate Coping Just Getting Through Early Stage Burn-Out Crashed and Burned

So where do you fit? “Peak Performer” or “Just Getting Through? or something else? Exactly who are the “Peak Performers?” They are those individuals who generally are self-motivating and have an ever-expanding self-identity. They like themselves and feel as though they are in control of their destiny. They are flexible, open to constructive criticism, willing to make adjustments and are tolerant of others’ opinions. They are energetic, enthusiastic, playful and creative. They have clarity of objective, dream “The Big Picture” and can communicate the same to others. With a profile such as the aforementioned, is it any wonder that very few people “live” in the “Peak Performer” category all the time and some never feel that they make it? But it can be a goal. Describing the “Average/Adequate” performer does not take too much of an explanation. This is where the majority of individuals spend the majority of their time. They know what is expected of them and they work hard to make it happen. But when a task is completed, they choose to stop. Seldom do such individuals take the initiative to do more than what is required. Then there is the “Coping” level performer. This is when their tasks do get completed, but extra time has to be put in to do so. Such individuals tend to just be managing rather than actually performing. The results can be unreliable. “Just Getting Through” describes many individuals at various times. They have more duties than time or energy is available to complete them. They end the day exhausted and declaring never again to be put in such a position. Quality really suffers. Moving on to “Early Burn-Out” is where one is approaching the danger zone. Their tasks are eventually completed, but there is no personal satisfaction, just a sort of numbness. There is nothing these individuals can point to with pride. They are just thankful to be finished. They have reached the point of no longer caring. “Crashed and Burned” is when individuals know that their world is coming apart at the seams and no one is around with the glue to hold them together. They cannot function adequately, hate themselves for reaching this point, and feel totally helpless to do anything about their dilemma. As you can see, these stages run the gamut. Regardless of where you see yourself now, don’t despair, as there are always times when we find ourselves at a less than desirable level. The focus is to attempt to spend the majority of time in the “Peak” area. This is the level that will help us gain the greatest amount of success and satisfaction with ourselves. And how do we achieve that? First of all, it cannot be done overnight. One of the early steps goes back to seeing “The Big Picture” of what you want to accomplish and having realistic expectations. Having the mental and emotional energy necessary to meet these expectations is a crucial part of the answer. How do we find this energy to keep motivated and optimistic? A good source is communicating with others, sharing ideas and listening for feedback—both critical and complimentary. Staying focused is another valuable source. Keep true to the objectives, not allowing energy to be diluted. Know the limits as to what can be accomplished. Having our physical well-being in sync with the task at hand is another key ingredient in performing at peak level. It is a known fact that we cannot do our best if we are not healthy. Many companies have reccontinued on page 52


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Marketing in the Shadow of Rising Interest Rates While interest rates may be on the rise, we all wait peacefully to see if HARP 3.0 is actually going to come to fruition. If rates do continue to rise, the mortgage market will shift to a purchase and cash out refinance market as it always does. While this may scare some people from marketing, others continue to market successfully. How do they do it? Stick with what works. Direct mail marketing has been on the rise because it is a mainstay in the mortgage marketing community. Also, as the market shifts to a purchase market, you may find yourself trying out new lead sources. Internet leads work well for purchases, but you have to be open to competing with others for the business. If you don’t want to compete, you will need to generate your own leads or pay a premium for exclusive leads like live transfers or pre-screened purchase leads. Costs vary on these types of leads, but they are the only way to truly know when someone is in the market to purchase a home and looking for financing. Mail needs to be dropped consistently in order for it to work properly. People who drop mail three to four times per year usually get varied results, while people who drop mail weekly or bi-weekly seem to have much more consistent results. If you choose to go with “leads,” then make sure the company you work with has a backup lead type in case the first type you try does not work. Good luck this year! The mortgage market is holding strong and looks like it will grow steadily throughout 2014. TagQuest Customer Spotlight Each month, we like to talk with our clients and find out how their campaigns are going. Here’s what we heard from one of our mortgage professionals in Kentucky on the results of their direct mail marketing campaign:

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• Five thousand mail pieces sent out in December • Mailing type: HARP/FRM refinance • Response rate: 1.28 percent • 64 totals calls (and still coming in as this article went to press) • Eight applications so far Highlights of campaign that work well for you: “Our volume last year increased 18 percent from the previous year.” Highlights of growth that could appeal to other loan officers or offices: “We were able to increase our staff from the direct mail marketing by 50 percent due to the success of the direct mail campaign at its peak.” —Donnie B., Mortgage Broker, Louisville, Ky. Medford, Ore.-based TagQuest is a full-service marketing firm created specifically for the ever-changing business world. TagQuest assists companies with their direct marketing, advertising and branding needs, and knows what it takes to generate quality customers and, most importantly, how to retain those customers for years to come. TagQuest brings forth a unique opportunity to utilize our experience and expertise in varying consumer sales and marketing environments. For more information, call (866) 376-5540 or visit Tagquest.com.

VIEW OUR MOST RECENT WEBINAR ON YOUTUBE Online readers please click on the link below, readers of the print edition, please copy the link and paste it into your browser. http://www.youtube.com/watch?v=coBEsmEVOgo

SPONSORED EDITORIAL

heard on the street

continued from page 36

a team of expert associates well equipped to help Orange County residents and housing industry professionals with their mortgage needs. In addition to these Carlsbad and Irvine offices, REMN has existing branches in Riverside, Pleasanton and Fresno, Calif., as well as wholesale and correspondent operations based in Irvine. Earlier this year, Tim Owens, a noted industry veteran, joined REMN in the role of regional vice president explicitly to help lead the company’s growth in Arizona and along the entire West Coast. “REMN’s growth across Southern California is a testament to the company’s dedication to becoming a major presence on the West Coast,” said Tim Bartosh, executive vice president for REMN. “In the next year, we’ll continue to open up new branches and bring on the best associates as we help housing industry professionals, home owners and future homebuyers, with their mortgage needs.”

GSF Mortgage Announces New Indiana Branch and Expansion Into California GSF Mortgage has announced the addition of a second branch in the state of Indiana. The branch will be overseen by industry veteran John B. “Jack” Westfield. Westfield comes to GSF with more than 27 years of experience. He started out as an office coordinator for a mortgage industry and his dedication grew from there. Two years in a row, Westfield was the number one producer for a local bank where he earned the promotion to become sales manager. Later on, he worked his way up the ladder with another mortgage company, where he became regional vice president. Westfield is an active financial advisor and also held his Realtor license. While handling financial services, he added mortgage lending to his list. “I introduced additional services in order to fit customer’s needs,” said Westfield. Along with owning his own GSF branch, Westfield also is the director of Managed Capitol Advisors in Indianapolis. Westfield has been priming the pump when it comes to real estate agent partners. He finds often times he has developed relationships with customers looking for a real estate agent. He hopes by referring them to select agents, he will be able to form lasting partnerships. “Jack’s passion will support his growth within the industry. His deep roots, along with his motivation to gain partnerships, will ensure his branch’s success. Jack is a welcomed addition to our family,” said GSF National Sales Director Mike Maida. GSF has also announced that they have expanded operations into

California. Overseeing the addition will be Branch Manager Jonathan Greene. Greene joins the GSF family with over 30 years of experience. Originally from Michigan, Greene attended Spring Harbor College and studied Business Administration. After moving to California, Greene entered the mortgage industry at the age of 21. He utilized his business management training and entrepreneurship spirit to run his own business for numerous years. His experience also comes from working for large national lenders. “Jonathan’s genuine dedication and transparency will garner his success in helping borrowers at any level. We look forward to helping him grow his business in California,” said Maida.

Mortech Partners With AllRegs to Increase Compliance Mortech has announced a new workflow within Mortech’s Marksman pricing engine. Loan officers now can access and automatically incorporate investor underwriting guidelines via an exclusive partnership with AllRegs. The new option now is available on both the product and rate screens within Marksman. Results are automatically color coded to let loan officers know at a glance if a borrower will qualify for a loan program based on the loan criteria entered. This will reduce errors and lender risk by ensuring the loan meets investor eligibility guidelines. Administrators also can choose to configure Marksman to hide ineligible results from loan officers. “In today’s lending environment, investor compliance checks cannot be left to chance. The costs of non-compliance are too high,” said Don Kracl, vice president of mortgage tools for Zillow, Inc. “Since these checks are so important, it makes sense to run them automatically.”

Easy Mortgage Apps Unveils Partnership With Lending Manager

Easy Mortgage Apps LLC (EMALLC) has announced the formation of an all-new and strategic business relationship with Lending Manager. EMALLC will utilize Lending Manager’s comprehensive understanding of the loan origination and CRM software implemented by nearly 90 percent of the industry to offer clients a seamless integration experience. “Easy Mortgage Apps believes this new partnership with Lending Manager will continue to differentiate our two continued on page 42


BROKERS BEING SUED FOR

BUYBACKS By Rocke Andrews, CMC, CRMS

our personal assets, but then sign away that protection in a broker agreement. Several broker agreements require personal liability for employees, vendors and borrower fraud or even just if the loan is returned by the final investor. With this personal liability pledge, you have now given your savings and assets as collateral for your ability to fund close and fund loans through your investor. If you have received this buyback request, it is already too late. So what can we do now to protect ourselves? First, you must read your agreements and not sign ones that require any reason buybacks and definitely do not sign personal liability. If enough brokers refuse to sign, hopefully they will change their agreements. These agreements really do not make sense, as most brokers do not have the ability to buy back loans anyway and it usually results in bankruptcy or a closing of the business which does not help the wholesaler. So why have it in there to begin with? Now fraud is a different story and that will always remain and you will be personally responsible for any fraud you have knowledge of. Do not think Errors & Omissions (E&O) coverage will protect you from one-sided broker agreements. If there are no errors and the lender simply

wants you to buy back the loan, it is unlikely E&O will help you. Even if the lender made the error, many agreements still require you to buy back the loan and pay all the expenses of the lender. Most E&O policies will not cover fraud. If you are operating as a mini-correspondent, you have already accepted this higher liability through the use of a warehouse line that you have probably provided with personal guarantees. The broker agreement is likely stricter as you are now in the Big Leagues. So, starting now, let us read our agreements and refuse to sign those that are unfair. Strike out clauses that make you liable. There are many lenders out there with fair agreements and those are the ones you need to do business with. NAMB—The Association of Mortgage Professionals is going to try to get a standard agreement to use with all our lenders, but it will only work if we refuse to sign onerous agreements and ask them to use the NAMB standard agreement. Rocke Andrews, CMC, CRMS of Lending Arizona LLC in Tucson, Ariz. is vice president of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (520) 886-7283 or email randrews@lendingarizona.net.

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!

n New Mexico Mortgage Professional Magazine n JANUARY 2014

We have them! Do you?

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It starts when you are really busy or really trying to find a home for a loan. You might have missed a guideline or a lien and are now trying to stretch the boundaries. You do searches and find a lender that will do the file. You go over everything with the underwriter, send them the important information and finally are confident that they can close your loan. Sometime in this process, you now need to get approved by that investor. Or, maybe you meet a rep at a lenders fair and he bugs you to get signed up or one of your LOs wants to get signed up and maybe you are really busy and just give the broker agreement a brief cursory review. Maybe it is a lender whose pricing is so good you have to get approved to be competitive in your market and choose to sign the agreement anyway. The rep says, “We have never asked a broker to buy back a loan … it’s just a formality required to sell our loans to the secondary market.” Whatever the reason in the beginning you now have received a registered letter asking you to buy back a loan. You have usually 30 days or they will pursue legal actions. The letter states, “Please note in your broker agreement you have agreed to buy back a loan if it is unsellable for any reason—or we have been asked to repurchase the loan.” Even though the investor underwrote the loan, it is now unsellable and becomes your responsibility. Your borrower committed fraud unbeknownst to you, but you have agreed to indemnify the lender in any case which means buying the loan back, plus attorney’s fees and accrued interest. There are several cases out there now where wholesalers are asking brokers to repurchase loans for these reasons. My first experience was in the early 1990s with a regional lender who approved and funded a 90 percent refinance with financed MI. The loan was unsellable because the LTV now exceeded 90 percent. I argued that they approved it and should have known upfront, but their answer was, “Please review your broker agreement.” Luckily, I was able to refinance with another lender doing the loan at no cost to the borrower to salvage our

relationship. It only cost me extra time, stress and aggravation for my borrower. There are several brokers who were not as lucky. One had a $47,000 manufactured loan that contained fraud by the borrower. The lender asked the broker to buy back the loan and the broker said, “No, we had no knowledge of the fraud.” They went to court and the broker won the fraud case, but was ordered to pay the lender $187,000 for losses and attorney’s fees under the broker agreement that said broker would indemnify the lender for whatever reason the loan went bad. The legal fees the lender the lender incurred were far greater than the loan amount. The broker had to pay his own legal fees in addition to the $187,000. Many other brokers are being asked to buy back loans that were returned by Fannie Mae and Freddie Mac because their agreement states they will. Missing documentation, unsigned letters or disclosures can all cause buybacks. Most brokers have no solution but to declare bankruptcy or shut their businesses that they have been operating for numerous years. Trying to reopen a new business usually doesn’t work as the judgment will follow. Business bankruptcy will not work if your agreement includes personal liability. Most of us have either incorporated or organized as an LLC to protect


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The Long & Short: The Business of Short Sales

How lender policy requiring mortgage delinquencies for a short sale approval continues to fuel the “strategic default” alarm and results in a foreclosure code for most short-sellers By Pam Marron The practice causes severe havoc on credit, results in erroneous coding of a foreclosure for a short sale and delays consumer rebound for new credit and re-entry into the housing market. And, it can be fixed.

Policy at the root and how it happens

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En-masse, lenders continue to require that underwater homeowners must be delinquent on their mortgage in order to get a short sale approval. Trying to proceed with a short sale while staying current on a mortgage has proven to be immensely difficult for those who try. Lenders question the “depth of hardship” when the underwater homeowner pleads to stay current, even when an acceptable hardship is evident. Often, underwater homeowners attempting to stay current are self-employed and concerned about how delinquent mortgage credit will affect their business credit, or government employees who may jeopardize their job if they go delinquent. Lenders commonly leave the reason for the short sale denial blank for these homeowners or simply don’t respond until the underwater homeowner gives up and goes delinquent. Yet, the press continues to report on the “strategic default” practice and that a large number of underwater homeowners are choosing to go delinquent even when the homeowner is capable of making the mortgage payment. Yes, there are those who take advantage of the system and clearly abuse the process. But the August 2013 Working Paper put out by the Federal Reserve Bank of Atlanta and entitled “Unemployment, Negative Equity, and Strategic Default” suggests that “ruthless” or “strategic” default during the 2007-2009 recession was relatively rare. The report cites that individual unemployment is the strongest predictor of default. Lenders continue to require short sales to be delinquent for two reasons found so far: 1) To prevent loss of time into loss mitigation if the homeowner does not qualify for the modification or short sale; and 2) For the servicing incentive fees paid to the lender for loss mitigation department processes. Delinquent loans are commonly processed through lender loss mitigation departments. A practice called “dual-tracking” often takes place where the short sale is placed on a loss mitigation track even if the homeowner has applied for a modification or a short sale. When the mortgage delinquency exceeds 120 days, mortgage credit is commonly coded as a foreclosure. Because of the lender short sale processing timeframe, where application, contracts and home value documents must be submitted and approved, exceeding 120 days before a mortgage closing is typically inevitable. Short-sellers who are approved and close as a short sale most often unknowingly end up with a foreclosure code on their short sale. This problem was not visual until eligible past short-sellers able to reenter the housing market applied for a new mortgage and the foreclosure code appeared specifically on conventional loans in both Fannie Mae and Freddie Mac automated underwriting systems (AUS). The foreclosure code results in a loan denial and a required seven-year wait, even though underwriting criteria allows past short-sellers to be eligible for a new mortgage two years after the short sale. This was also when it became apparent that there was no universal, specific short sale credit code. Variations borrowed from multiple foreclosure codes in Metro 2 are used. But lenders, unaware of the confusion, simply code short sales as foreclosures due to delinquency timeframes, which can be proven. There are fixes. More than nine million past and currently underwater homeowners are affected. Stay tuned. Pam Marron is senior loan officer with Bankers Mortgage of Pasco County. She may be reached by phone at (727) 375-8986 or e-mail pmarron@tampabay.rr.com.

heard on the street

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companies within the lending industry,” said EMALLC Spokesperson Michael Kelleher. “Mortgage Lenders are a topnotch team of skilled individuals who posses an unparalleled understanding of all aspects in mortgage lending technology. Lending Manager’s expertise and the ability to integrate with their proprietary programs will greatly enhance our ability to service our customers and together we are offering an experience second to none.”

Stonegate Announces Acquisition of Nationstar’s Retail Assets Stonegate Mortgage Corporation has announced that it has completed the acquisition of the wholesale lending channel and certain distributed retail assets from Nationstar Mortgage Holdings Inc. Stonegate’s acquisition adds more than 200 employees associated with these businesses. This transaction enables Stonegate to expand its wholesale and retail client base by expanding the geographies, third-party originators and customers it can serve. As a part of this transaction and to execute its aggressive growth strategies, Stonegate is realigning its management structure and adding several new senior managers. Kevin McCafferty will now lead Stonegate’s Third Party Origination (TPO) channels as executive vice president-third party origination. Prior to Stonegate, Kevin developed extensive wholesale experience with Nationstar Mortgage and LandSafe Closing Services, a Bank of America subsidiary, as national sales executive. For 20 years, he was with Bank of America in varying capacities, last serving as wholesale mortgage executive, responsible for sales across their Western Division, where he built annual production to over $14 billion. He will report directly to Dan Bettenburg, president of Stonegate Mortgage. The TPO channel will be expanded into three Sales Divisions led by senior vice presidents Michael Cullen (East Division), Paul Wyner (Central Division) and Greg Armstrong (West Division). John Dennison will remain SVP-inside TPO sales and Doug Miller will remain SVP-CFI. All of these individuals will report to McCafferty in his ne role. Fred Bolstad will become Stonegate’s executive vice president, national sales manager with responsibility for retail. Prior to his hiring at Stonegate, Fred held several national sales positions at Nationstar Mortgage, Citibank, as managing director, wholesale lending and managing director of National Production. While at Citibank, Fred generated more than $80 billion in volume. Bolstad will report directly to Jeff Walton, president of retail lending.

Optimal Blue Acquires LoanSifter Optimal Blue has announced the acquisition of LoanSifter Inc. As a result of the acquisition, LoanSifter’s operations, employees and customer relationships will immediately become a fully integrated part of Optimal Blue. The new company will have more than 1,500 customers, 200 employees and three offices nationwide with headquarters in Plano, Texas. Terms of the acquisition were not disclosed. Founded in 2004, LoanSifter provides content and technology that is used daily by tens of thousands of mortgage professionals to search loan products and guidelines from more than 185 investors. LoanSifter offers a diverse suite of services to mortgage bankers, credit unions, community banks and brokers, including a managed-content pricing engine, point-ofsale solutions, marketing and automated quoting. “Optimal Blue and LoanSifter are leaders in this industry,” Larry Huff and Ivan Darius, co-CEOs of Optimal Blue said. “This is a rare opportunity to combine the strengths of two organizations with exceptional track records and capabilities and focus on the same mission, which is to more effectively provide innovative products and services to our combined customers.” “LoanSifter’s commitment to innovation has helped lenders grow their business and streamline their origination process,” said Bruce Backer, former president of LoanSifter. “That commitment continues with this acquisition. By becoming part of Optimal Blue, our customers and partners will benefit from the combined expertise and creativity of two highly successful, marketfocused teams.”

Urban Institute Partners With CoreLogic CoreLogic has announced a new strategic alliance with the Urban Institute, a Washington, D.C.based economic and social policy research organization. Through the alliance, CoreLogic data will help power the research conducted by the Urban Institute’s newly formed Housing Finance Policy Center. To kick off this initiative, CoreLogic and the Urban Institute recently co-hosted a day-long D.C. event titled “Data, Demand and Demographics: A Symposium on Housing Finance.” The Symposium featured housing and economic experts from the government, nonprofit and private sectors who delivered keynote presentations and led interactive panel presentations with open discussions. A number of


Mortgage Professionals to Watch

HARD DELASSANDRO ZAPATKA

l Primary Residential Mortgage Inc. (PRMI) has named Burton Embry as the company’s new senior vice president of quality assurance and industry relations. 43

l Jo Ann Kruse has been named chief operating officer of Matt Martin Real Estate Management LLC (MMREM).

DAVIS LUBURICH

l Wingspan Portfolio Advisors has named Aaron Luburich to the newly created position of senior vice president for business development.

l Freedom Mortgage Corporation has appointed industry veteran Donald Hard as the company’s first vice president of business development for its retail division, and Lee Ann Dalessandro as the company’s

l DocMagic has announced that Melanie Feliciano, chief compliance officer, has been appointed to the board of directors of the Electronic Signature & Records Association (ESRA). DocMagic has also announced that the firm’s Director of eServices, Tim Anderson, has been elected to the Mortgage Bankers Association’s MISMO Residential Governance Committee. l United Shore Financial Services (USFS) has announced that Barbara Yolles will become the company’s first-ever chief strategy officer. l Real Estate Mortgage Network Inc. (REMN) has announced the addition of seven new mortgage loan originators, including: Andy Pickel in Wilmington, Del.; Deborah Sorbo in continued on page 49

n New Mexico Mortgage Professional Magazine n JANUARY 2014

KRUSE

l Kate Davis has joined the QMiS Systems team after a decade of mortgage operations experience as pre-funding manager.

l Norcom Mortgage has announced the addition of wholesale account executive Lisa Zapatka. Clifton Rhea has been named branch manager at Norcom Mortgage’s latest office in Towson, Md.

NationalMortgageProfessional.com

DONINE

l Richard S. Donine has been named senior vice president, national marketing director for First Guaranty Mortgage Corporation (FGMC).

vice president and northeast regional sales leader.

EMBRY

pressing topics were discussed, including the demographics of the homeowner and rental populations of the future, how to increase liquidity and transparency in the mortgage-backed-securities markets, the future needs for rental housing financing and how to best improve credit availability. Among the highlights were remarks by Gene Sperling, director of the National Economic Council and assistant to the President for economic policy. Speaking on behalf of the administration in his remarks he said, “It is crucial that we address the fundamental flaws in the system while preserving the policies that are working now in the recovering market.” The principal goal of the CoreLogic and Urban Institute strategic alliance is to enable Urban’s Housing Finance Policy Center to enhance its analytical work with high integrity datasets provided by CoreLogic. In support of this objective, the Urban Institute will produce data-driven reports, policy analyses and white papers that will inform public policy. In addition, the alliance will enable the companies to co-sponsor ongoing D.C.-based discussion seminars to encourage debate of pertinent housing policy questions.


BIG , SMALL We Need

‘Em NationalMortgageProfessional.com

JANUARY 2014 n New Mexico Mortgage Professional Magazine n

By Eric Wiley ince the mortgage meltdown of the late 2000s, there has been a change in the perception of many consumers, the media, legislators and regulators towards small, independent mortgage creditors and brokerages. Once seen as a lower cost, efficient loan origination model that allowed consumers access to home financing in a “one stop shop” environment, small creditors and brokerages suffered from being labeled as the scapegoat for the greater woes of the home finance system. Mortgage brokers, by definition, connect consumers to other institutions’ money. Small creditors almost always do the same thing, even if they are a depository. What is often misunderstood is that even the larger creditors perform their mortgage lending in much the same way, just on a different scale. Very few home loans are actually held in portfolio. Jumbo (above the conforming loan limits) and home equity lines are examples of exceptions to this rule. It isn’t practical or possible for banks and credit unions to actually lend money directly from their vaults, over and over again, given the size of the system. Even

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the largest mortgage servicing banks securitize their mortgage portfolio in order to replenish funds so that they can lend again. In other words, even the big boys are lending other people’s money. Mortgage brokers and small creditors were not the cause of the meltdown that the world experienced, because mortgage brokers and small creditors didn’t and still don’t make their own guidelines or products. Instead, their role was and still is to act as a value added switchboard operator, connecting consumers to products that fit the needs of specific lending scenarios. The value add comes in the form of consumer interaction and education, holding the hand of the consumer through the myriad maze of complexity that is mortgage finance, collecting information, determining available options based upon consumer needs or requests, working with many difference mortgage creditors who offer different loan products, services and guidelines, reviewing and possibly underwriting the collected information, coordinating third party services and ultimately coordinating the settlement process so that financing can be consummated. Many valid concerns arise when considering today’s mortgage marketplace. Mortgage volume across the nation is declining. A significant number of large

l Underserved marketplaces, particularly those in rural or small communities, have few local mortgage offerings to choose from – it is extremely expensive for depositories to offer mortgage finance directly through their smaller branch offices l While there are many positives to the enhancement of requirements placed upon mortgage loan originators of any kind, working for any employer, there are drawbacks as well—most depositories cannot afford to have a local, specialized mortgage loan originator available to their branch office network, creating non-local, call-center style origination offices

Brokers bring benefits l Third-party origination promotes pricing and efficiency competition l Brokers can offer the products of multiple depositories efficiently and through a single bricks and mortar location

All!

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l Smaller depositories have altogether discontinued their home loan divisions in droves as a result of increased regulation and limited loan volume to support the increased overhead requirements.

depositories are no longer offering brokers access to their products through wholesale channels as they try to strengthen their retail offering given the decline. Many smaller depositories have discontinued offering home loan products to consumers because they simply cannot do so in an efficient manner due in large part to today’s regulatory environment. This is true of both banks and credit unions. At the creditor level, mortgage finance has a much higher “break even” closed loan volume requirement than in the recent past given dramatically increased overhead to cover the cost of compliance efforts and requirements.

Concerns l Reduction of competition is leading to monopolization by the large depositories–contrary to the “Too Big to Fail” mantra, the large institutions now make up a larger piece of the mortgage pie than before the crash. l The largest historical wholesale channel lenders, most of whom are the big banks themselves, have stopped offering outlets directly to mortgage brokers in an attempt to avoid media scrutiny and to try to control risks brought on by new regulations that require severely enhanced third-party oversight.

l Depositories can reach communities that they don’t have physical branch locations placed within and diversify their home loan risk geographically without the fixed overhead l Consumers in smaller, underserved marketplaces can have access to the same programs that are found in densely populated areas l Individual creditors often offer their loan products with overlays, or their own restrictions that are over and above the guidelines of the agencies (collectively referring to Fannie Mae, Freddie Mac, HUD’s FHA program, the USDA home loan program and the VA home loan program) and differ from institution to institution— brokers have access to multiple creditors for this very reason, so that they can serve consumers while providing access to specific fits for specific lending scenarios l Home loan rates vary by day and vary by institution as that institution’s needs for home loan volume change—by working with a variety of creditors, brokers have the unique ability to maintain competitive pricing and rates even as some lenders come in and out of the market Eric Wiley is senior vice president and chief operations officer for Lake Oswego, Ore.-based Pacific Residential Mortgage LLC. He may be reached by phone at (503) 905-4902 or e-mail eric.wiley@pacresmortgage.com.


NMP’s Inside Look R I D G E W O O D

S A V I N G S

B A N K

Mortgage Lending Done the Right Way! An Interview with Art Saitta, Assistant Vice President and Residential Business Officer

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NMP: How committed is Ridgewood Savings Bank to the mortgage business? Saitta: Residential lending is one of the cornerstones of our success. Ridgewood Savings Bank has been committed to residential lending since its inception and

NMP: What makes Ridgewood Savings Bank unique to the mortgage business? Saitta: First, our primary goal is to make loans that enhance a borrower’s life. It is not just about dollars and cents. We feel that our loans to qualified borrowers strengthen the communities they live and work in. We are a low fee, high service mortgage lender, where borrowers have direct access to underwriters and senior management. In addition, we do not use FICO scores to determine the results of a loan, unless it is a PMI loan or SONYMA loan. In the wholesale channel, we are best

known for being a primary jumbo loan lender. In the retail channel, we are proud of our Community Outreach Program and our affordable loan products. Second, Ridgewood Savings Bank never took part in sub-prime lending for the purposes of increasing income because we never wanted to risk our depositors’ money, which is why we have always been a financially strong lending institution. NMP: What is the makeup of your client base? Saitta: Our wholesale business consists of seasoned mortgage broker/bankers ranging from a two-person company, to companies considered to be some of the largest brokers/bankers in the country. We want solid business and it does not matter if a client submits one file a month or a dozen files a month, every file is a priority. Our retail business comes from existing borrowers, real estate agents, attorneys, financial planners, and referrals from our branch network. NMP: What type of growth is Ridgewood Savings Bank experiencing in its retail and wholesale channels? Saitta: In 2012, we broke all previous records for residential originations, and in 2013, we are projected to again be at record levels. NMP: What would you say drives Ridgewood’s growth? Saitta: Our wholesale business is known

for our co-op and condominium loans and our clients have direct access to our approved appraisers. Mortgage brokers appreciate the ease of communication with our back-office and the direct involvement of senior management. Retail growth is being driven by our greater visibility within our communities and products that cater to the needs of the homebuying public. We also offer first-time homebuyer seminars that are very popular in our communities. We respect the business of our mortgage broker clients and make certain that our retail mortgage consultants do not compete with broker clients. Brokers know that we do not change rates regularly. Our guidelines and forms are very accessible, and we offer free rate-lock extensions if rates have not increased or if a delay in closing took place due to our inability to meet their timeframe. Brokers know that we appreciate their loyalty and quality loans. NMP: What is your outlook for the mortgage business next year? Saitta: We are definitely witnessing a sellers’ market and see values increasing. In addition, we have begun to see new construction for condominiums AND the middle-priced market beginning to show confidence. Refinances, except for cash-out purposes, will be minimal, but we expect purchase business to increase. Rates will probably rise, but even with a rise in rates, we believe it will not impact the purchase market. I have been in the business for over 27 years and experienced fixed-rates at 16 percent and ARMs at 12.5 percent, and people still bought homes. People still believe in the American dream of homeownership, and want the best for themselves and loved ones. We directly help people achieve that dream and better their lives in the process.

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NMP: Art, can you give our readers some background on how Ridgewood Savings Bank was founded and its business today? Saitta: Ridgewood Savings Bank was founded in 1921 in Ridgewood, N.Y. when we opened our first branch, exactly where our headquarters stand today. Today, we are the largest mutual savings bank in New York State, with more than 750 employees and 35 branches and mortgage centers across New York City’s five boroughs, Long Island and Westchester County. Our core business strategy remains the same—the development of our people to be best-in class, and in turn, for them to provide unsurpassed personal service to our customers.

we are a portfolio lender, except for State of New York Mortgage Agency (SONYMA) loans. We lend only within the communities we do business in because we have a direct interest in the success of those communities. We believe that since we understand the needs of the people who want to live in those communities, we can offer mortgage products to meet their local needs. In addition, since we thoroughly understand these communities, we have one of the lowest delinquency ratios in the country. Ridgewood Savings Bank has been active in the mortgage broker community since 1994 and we have been dedicated to that industry by not only providing continuous service; but also, by taking an active role in the New York Association of Mortgage Professionals, the New York state affiliate of NAMB—The Association of Mortgage Professionals.

NationalMortgageProfessional.com

rt Saitta is assistant vice president and residential business officer of Ridgewood Savings Bank, based in Ridgewood, N.Y. Ridgewood Savings Bank is a conventional mutual savings bank, founded in 1921 and now operates 35 branches across New York City’s five boroughs, Long Island and Westchester County. Saitta, who has 27 years of experience in mortgage lending, is part of the leadership of Ridgewood Savings Bank’s best-inclass mortgage team. To learn more, visit www.ridgewoodbank.com. National Mortgage Professional Magazine recently sat down with Art to get an update on Ridgewood Savings Bank‘s mortgage operations.


NMP MORTGAGE PROFESSIONAL OF TH

Pam Marron, Senior Loan Officer Bankers Mortgage of Pasco County

JANUARY 2014 n New Mexico Mortgage Professional Magazine n

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ach month, National Mortgage Professional Magazine will focus on one of the industry’s top players in our “Mortgage Professional of the Month” feature. Our readers are encouraged to contact us at newsroom@nmpmediacorp.com to be considered for a future “Mortgage Professional of the Month” article. This month, we chat with Pam Marron, a 29-year mortgage veteran who has recently been embroiled in the troubling world of underwater mortgages and short sales. Her grassroots efforts, along with those of the National Consumer Reporting Association (NCRA) and the Consumer Financial Protection Bureau (CFPB), helped enact change at a government level in regards to short sale coding, working with both Florida Sen. Bill Nelson and Fannie Mae. How did you first get involved in the industry? I have loved this business from the beginning. Finance was something that was second-nature to me. Each day brings about new challenges and there is never a dull moment. How has the mortgage industry changed over the years? Now, we pay attention to detail that

BY ROBERT OTTONE

was missing in the early 2000s. Frankly, it has reverted back to the way it was 10 or so years ago. The industry seemed to be getting far too lax. How so? Guidelines allowed for sloppiness and lacked common sense sometimes. An 80/20 percent loan to value, in other words no skin in the game, with lousy credit? What were we thinking? What I found was that when the market heated up, houses were going so fast that often, consumers felt like they had no choice but to go the route of a riskier sub-prime mortgage due to the speed of closing. Many properties had multiple backup offers. Speed, rather than the best product, which might take longer to document, was preferred. Can you talk about the difficulties in weeding out that type of problem? Ironically, new regulations, courtesy of the Consumer Financial Protection Bureau (CFPB) were needed. I may catch some flak for saying that, but I think that the rules enacted by the CFPB were passed down because the industry was out of control. The CFPB’s oversight was definitely needed. We may not agree with all of the rules, but we have to learn to live with it, it’s doable, and safety nets have been put

back in place. Those who stay in the business will still be able to make a reasonable, good living, as we have in the past, with limits in place for lenders and consumers. With every regulation that comes about, there are always the unintended consequences. I think, as we work through the changes of the CFPB’s qualified mortgage (QM) rule, we will work through these unintended consequences. Are you prepared for the QM rule that was enacted as of Jan. 10th? All of us are holding our breath, but yes, as much as can be expected. We’ve had a year to prepare for it. I understand the apprehension. I have already been to one “what to expect” luncheon this week, and it would be a good idea for those in this industry to make this a priority to do now. Realizing we are all in the same boat and getting to the bottom of confusion now is incredibly important. Do you think the industry as a whole is going to be fine? Absolutely. There was a recent report that stated that four-fifths of the loans that are going through now will be able to get through, even in the wake of QM. There are already a whole bunch of private enterprise investors

looking at doing non-QM. And, quite a few of them are the same QM wholesalers. Product will be rational and realistic, with more attention paid to good credit and greater down payment. The sub-prime of the past, with blended first and seconds where no skin was in the game, with low credit scores, I believe, is gone. That is the face that I am seeing for new non-QM loans. When people don’t meet QM standards, investors will charge a slightly higher fee, and will see them as a worthy credit risk with skin in the game. Frankly, I’m relieved that QM is finally in place, we don’t have to wait anymore, and we can get on with business. You are literally the first person I’ve talked to in the industry that doesn’t seem panicky about new CFPB and QM legislation. Why is the industry having such an adverse reaction to change in this way? I don’t think that anyone is happy with change in their industry. And, those of us still in the business are working harder now, much due to problems we saw and felt helpless to do anything about. Now, it’s harder for all us. If you’re going to stay in this business, you need to adapt and evolve with the business.


HE MONTH

diversity and inclusion continued from page 11

“It has been clear to me from the beginning that the CFPB was not giving lip service.”

How do you balance work and family with the things you’re passionate about? I have been told that I don’t, but my husband helps. When I get too deep in the woods, he pulls me back. Robert Ottone is executive editor at National Mortgage Professional Magazine. He may be reached by phone at (516) 409-5555, ext. 314 or e-mail robertpo@nmpmediacorp.com.

Given the foregoing analysis, there are certain questions that should be considered in the promulgating of the Proposal. Each of the following six questions are relevant to the discussion, and management of regulated entities ought to give them due consideration. 1. Are the proposed standards effective and appropriate to promote diversity and inclusion? Why or why not? If not, what standards would be appropriate and why? How would such standards support or hinder the objectives of section 342? 2. Are the proposed standards sufficiently flexible but still effective to allow meaningful assessments of entities with a wide range of particular characteristics or circumstances Proposed approach (i.e., asset size; number of employto assessment ees; contract volume; income An evaluation of an entity’s diversity stream; and number of members and inclusion policy is a crucial ele- and/or customers)? ment in determining compliance with 3. Are there other ways to approach the proposed standards. The term the standards for smaller entities, that the Agencies have adopted for such as those with small contracting this evaluation is “assessment,” dollar volumes or those not required because the term “assessment” con- to file EEO–1 reports? What other templates both self-assessment and approaches or characteristics would an opportunity for the Agencies and be appropriate for any such alternathe public to understand the diversity tive, modified or scaled approach? policies and practices of regulated How would such modification or scalentities. ing support or hinder the objectives The assessment envisioned by the of section 342? Agencies is not one of a traditional 4. What other factors, if any, would examination or other supervisory be useful in assessing the diversity assessment. Thus, the Agencies do not policies and practices of the regulatplan to use the examination or super- ed entities, and why should such facvision process in connection with the tors be considered? How would such

Footnotes 1—Consumer Financial Protection Bureau, Office of Minority and Women Inclusion, Annual Report to Congress, Calendar Year 2012. 2—Ibid. Section 5. 3—Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Securities and Exchange Commission. 4—Section 342, Dodd–Frank Wall Street Reform and Consumer Protection Act (Public Law 111–203, HR 4173). 5—Op. Cit. 1, Section 5. 6—Federal Financial Regulators Proposing Joint Standards for Assessing Diversity Policies and Practices of Regulated Entities Pursuant to Section 342 of the Dodd- Frank Act, Press Release. 7—Ibid. 8—Ibid. 9—Ibid. 10—Proposed Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies and Request for Comment, Federal Register/Vol. 78, No. 207/Friday, Oct. 25, 2013/Notices. In my outline, I will draw heavily on the Proposal. 11—Ibid. 12 Federal Register/Vol. 78, No. 247/Tuesday, Dec. 24, 2013/Notices, 77792. 13—Ibid. Footnote 2. The Employer Information Report EEO–1 (EEO–1 Report) is required to be filed annually with the EEOC by (a) private employers with 100 or more employees or (b) federal contractors who have 50 or more employees, and are prime contractors or first-tier subcontractors, with contracts of $50,000 or more. 14—Entities that are required to file an EEO–1 Report are encouraged to use the proposed standards to develop and monitor diversity policies and practices. Entities that do not file EEO–1 Reports may also consider using the standards in a manner reflective of the individual entity’s size and other characteristics.

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What do you like to do for fun? I am co-director of the Suncoast Arts Fest. I love the arts. I’m not artisticallyinclined. I have witnessed, experienced how learning through the arts teaches one how to think outside of the box and that has helped me in other areas of my life. I learned this with my kids and see the value of arts education in schools. I love art that has a workable feature to it. I have two sons, both in their 20s. If I have time, I’m an intense gardener. Frankly, getting my hands in the dirt and creating an appealing visual landscape is my relaxation.

Diversity questions Standards l A diversity and inclusion strategic plan; l Commitment to diversity and inclusion; and l Progress toward achieving diversity and inclusion in workforce and procurement activities, which may include: l Current workforce and supplier demographic profiles; l Current employment and procurement opportunities; l Forecasts of potential employment and procurement opportunities; and l Availability and use of mentorship and developmental programs for employees and contractors.

Jonathan Foxx is president and managing director of Lenders Compliance Group and Brokers Compliance Group, mortgage risk management firms devoted to providing regulatory compliance advice and counsel to the mortgage industry. He may be contacted at (516) 442-3456, by e-mail at jfoxx@lenderscompliancegroup.com, or visit www.LendersComplianceGroup.com or www:BrokersComplianceGroup.com.

NationalMortgageProfessional.com

Plus, I’ve had a variety of experiences with the CFPB that were incredibly productive. It has been clear to me from the beginning that the CFPB was not giving lip service. Instead, from the beginning, we have discussed real, ground floor consumer problems and solutions. What I am convinced of is that the CFPB and some other agencies ARE concerned but aren’t aware of the ground floor problems, and WE have to make the effort to go to them and tell them the problems. We assume that the CFPB and other agencies know our problem. Some of the problems we have are so complicated that you need to talk with those specialized in the detail. I have found the CFPB to be that detail source along with the NCRA. Further, when things have gotten heated and could have easily gotten off the middle track to a solution, I have seen the CFPB keep the problem directly on course and not be swayed. I believe that the gut of what the CFPB does has everyone’s best interests in mind.

tional diversity is a critical compo- proposed standards.14 nent that the Agencies will evaluate. A model assessment would include: It is their view that diversity policy l A self-assessment utilizing the statements should be evinced by proproposed standards to conduct a viding public information that allows quantitative and qualitative evalthe public to assess those policies uation of the diversity and incluand practices. sion policies and practices. This view is predicated, philosophil Voluntary disclosure to the cally, on the premise that making appropriate Federal Agency of public an entity’s “commitment to the self-assessment and other diversity and inclusion, its plans for information the entity deems relachieving diversity and inclusion, and evant. The Agencies will monitor its metrics used to measure success in the information submitted over both workplace and supplier diversity, time for use as a resource in carinforms a broad constituency—its rying out their diversity and investors, employees, potential inclusion responsibilities. employees and suppliers, customers l The entity displays informaand the general community.” tion on its public website and Entities can publicize information in its annual reports, and in on their diversity and inclusion efforts other materials, regarding its through normal business methods, efforts to comply with these which can include, among other proposed standards as an things, displaying information on opportunity for more public their websites, in their promotional awareness and understanding materials, and in their annual reports of its diversity policies and to shareholders (if applicable). practices. The Agencies may Publication of this information can periodically review informaopen new markets to new communition on regulated entities’ pubties and can illustrate the progress lic websites to monitor diversithat has been made toward an importy and inclusion practices. tant business goal.

factors support or hinder the objectives of section 342? 5. Is the proposed model approach to assessment effective and appropriate to promote diversity and inclusion? Why or why not? If not, what approach would be appropriate and why? How would such approach support or hinder the objectives of Section 342? 6. Would there be potential advantages or disadvantages of the proposed model approach to assessment? If so, what would they be?


Seizing Opportunities in the Mortgage Industry and the Missteps to Avoid

not rush to judgment. Let the pot stew until its components are stable. Challenge your assumptions, including “expert” opinions, and when in doubt, repeat the process until you are confident you’re making the optimum decision relative to the risks. Warren Buffett’s famous rules of stock investing apply to corporate activities as well, whether it’s opening a new office or buying another company:

nancing activity, allowing the big players to maintain significant employees and infrastructure to serve that market, in addition to the smaller purchase market. With rates beginning to rise, refinancing has dropped precipitously and banks have responded by closing offices and terminating employees. According to the Mortgage Bankers Association (MBA), the trend is likely to continue through 2015 with the average 30-year fixed-rate mortgage climbing 30 percent from current levels to 5.2 percent, while refinancing volume declines by half—even though purchasing activity is projected to increase 20 percent. The retrenchment and remaking of the major players in the industry to conform to new economic conditions and regulations, and the subsequent ripple through originators and brokers, is similar to events that affected the domestic automobile market in the 1970s. The price of oil quadrupled from $3 per barrel to $12 in 1974 while “The Big Three” American automobile manufacturers continued to focus on large gas-guzzling vehicles. Their inability to respond quickly to new market conditions led to the rise of Japanese automakers like Toyota, Honda and Nissan into American automobile markets. The opportunity to expand regionally, offer new products, and add upstream capabilities is greatest when traditional market dynamics are in turmoil and the future is uncertain.

Ignoring the trends in your marketplace or assuming that your operation is going to be unaffected is a sure formula for failure whether you are an originator, broker or banker. Your competitors are sitting in board rooms and executive offices looking at the same numbers that you see, figuring out the best strategies for their companies to survive and exploit opportunities. Some are going to do nothing, unable to interpret the trends, anticipate their impact, or decide on an appropriate course of action. Others may take action because of fear or ambition, wresting market share from their more timid adversaries. You need to decide how you are going to be affected and how you’re going to respond or you are likely to be run over in your tracks. Offense is not the only strategy, and may in fact not be the best strategy in these times. Many mortgage companies are going to aggressively retrench by closing offices, terminating employees, and slicing unprofitable products and services with the intent of husbanding their resources and rebuilding when the blood bath is over. Some may expand in selected regions while de-emphasizing operations in others. A small group may aggressively expand, seeking to absorb or destroy as many competitors as possible while they are weak, then ferociously defend their new territories when stability finally comes. Any or all of these strategic postures can be appropriate if they are well-directed.

l Rule number one: Don’t lose money l Rule number two: Don’t forget rule number one).

Complacency is the enemy By Mike Lewis

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From time to time, fundamental shifts occur in all markets, upending the traditional roles of industry players and besetting them with new opportunities and risks. These shifts may be the consequence of technology, government regulation, economic exuberance or deflation or a combination of factors. Whatever the cause, however, old ways of doing business are threatened and new industry leaders emerge. Now is one of those times in the mortgage banking and brokerage industries. Success as the playing field changes is not guaranteed. Strategic missteps can lead to loss, even liquidation. The rewards, however, may be great for those who see the future, move forcefully to implement a winning strategy, and consolidate their gains as they proceed.

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The right time and opportunity Following the 2008 implosion of the mortgage-backed security market and the subsequent international recession, housing prices dropped by almost a third, and the stock market as measured by the Dow Jones Industrial Average (DJIA) fell to 6,469 on March 6, 2009, less than half its previous value of 14,164 on Oct. 9, 2007. As a consequence, a number of investment and commercial banks failed (Lehman Brothers and Washington Mutual), some were forced into involuntary mergers (Bear Stearns and Merrill Lynch), and some were bailed out by the federal government (Goldman Sachs). Fannie Mae and Freddie Mac were placed into receivership while Congress initiated the Emergency Economic Stabilization Act of 2008 followed by the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 to aggressively regulate mortgage and commercial bank activities. Almost five years later, the mortgage industry remains in turmoil. Many of the major commercial banks—the biggest players in the industry—were fined by the government due to their activities leading to the crisis. JP Morgan Chase most recently agreed to pay $13 billion in the largest-ever settlement with the U.S. government. Bank of America, Wells Fargo and Citigroup have similar exposures to suits. Paradoxically, the economic crisis and associated falling interest rates spurred a significant growth in refi-

Risks to avoid As with most activities which promise great reward to those who succeed, there are considerable risks that are inherent in the pursuit of rapid growth. The consequence of faulty assumptions, employing the wrong strategy, having insufficient resources or effort, as well as poor timing or failing to anticipate the dominant players’ reactions to loss of market share, can slow, even halt your progress—and may result in the total failure of your organization. A predator at the top of the food chain is most dangerous when injured. Aggression must be tempered with wisdom, haste with caution, and fantasy with reality. Realistically appraising your resources and capabilities and developing a flexible strategy to reach your goals is essential.

Over-extending Sun Tzu, a Chinese military general living around 500 BC and author of The Art of

War, counseled, “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” He also said, “Victorious warriors win first and then go to war while defeated warriors go to war first then seek to win.” Before seeking a larger market geographically or expanding into services which you have not previously offered, you should dominate your existing market with industry-leading quality and efficiency. Smaller organizations can rarely fight two battles at once due to limited resources and time. Before opening a new office or acquiring a competitor, be sure that you understand exactly what is required to make the move a success and what you plan to do if you hit an obstacle. Keep capital in reserve in the form of cash or pre-approved credit arrangements. Hire the best available people with the needed skills, clearly communicate your goals and expectations, and lead them to victory. When one phase of your plan is complete and able to operate autonomously, move on to the next acquisition, expansion, or service. In other words, don’t out-run your supply lines.

Haste makes waste Examples in which premature action resulted in unanticipated consequences, many of which were bad, are abundant throughout history. General Custer could have used more information about the size of his enemy forces, Congress about the effects of prohibition, and President Obama about the difficulty of building a complex information system when proposing a new health insurance program. Humans, including CEOs and company boards, are prone to act before thinking and to arrive at solutions before they understand the nuances of a problem. Bank of America’s ill-advised purchase of Countrywide Financial has cost much more than the $2.5 billion price tag as the latter’s activities in the mortgage securities debacle have become public knowledge. Quaker Oats acquired Snapple for $1.7 billion in 1994, only to sell the acquisition for $300 million 27 months later when the synergies didn’t prove out. Your strategy is only as good as the quantity and quality of information available, the objectivity and capabilities of your analyses, and the implementation of the decisions you make. Short-cuts rarely work out—the greater the potential benefit of the omission, the more likely a disappointing and expensive outcome is. Do

Final thoughts The past five years have been particularly difficult on the pre-eminent mortgage firms and are likely to be followed by another three to five years of uncertain interest rates, fluctuating regulatory practices, and fickle homeowners and homebuyers uncertain whether to refinance or buy. Deciphering and interpreting trends is likely to be difficult, even confusing, as one measure contradicts another. That said, it is also the kind of market in which fortunes are made and great companies appear from the mist of chaos. It is your time and your place … are you ready? How do you intend to seize opportunity and avoid missteps in the current market? Mike Lewis is a retired business executive and personal finance columnist. He may be reached by e-mail at mlewis@moneycrashers.com.


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the firm’s national sales effort for its national commercial services group. Inlanta Mortgage has announced the return of Joe Spisak to the Inlanta Mortgage team. Joe brings his customer care specialist, Kayla Kania, with him to the Oak Brook, Ill. mortgage loan office. The lending division of Carrington Mortgage Services LLC has announced the appointment of Carl Grimes as branch manager of its Tampa, Fla. office. Ken P. Wilson, MAI, SRA of Plano, Texas has been named president of the Appraisal Institute. Guaranteed Rate has announced that it has hired Lee Becton as its new director of community outreach to lead community service efforts and build relationships with local grassroots projects. Pro Teck Valuation Services announced that Wes Davis and Ellen Richstone have joined Pro Teck’s Strategic Advisory Board. Metro-West Appraisal Company LLC has announced the appointment of Greg Stephens as chief real estate appraiser to accompany his role as senior vice president of appraisal operations and compliance. NewOak has appointed Neil McPherson head of business development. The American Land Title Association (ALTA) has announced the appointment of Benjamin Lincoln as director of government affairs.

Your turn National Mortgage Professional Magazine invites its readers to submit any information, events, passages, promotions, personal or professional occurrences that seem appropriate and/or other pertinent data to the attention of:

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Mortgage Warehouse Lending Services Correspondent Lenders and “Broker to Bankerâ€? • • • • • • • •

$1 million - $10 million lines Ideal for mini-correspondents Competitive fees & interest rates      No net worth requirement No non-use fee and no wire fee Warehouse line is non-captive Non-delegated underwriting

Heard on the Street/Mortgage Professionals to Watch 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.

Bridging the gap from broker to banker Contact: Stephen Bertrand sbertrand@ravdocs.com 800-343-7160

calendar of events N A T I O N A L

M O R T G A G E

P R O F E S S I O N A L

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Parsippany, N.J.; Jim Walton in Richmond, Va.; Joe Della Torre in Sussex County and Wilmington, Del.; Kathleen Halbling in Toms River, N.J.; Paul Cook in Jacksonville, Fla.; and Sally Hepworth in Colorado Springs, Colo. Mortgage Master has announced the hiring of Michael Cannatti as Texas regional manager. Paramount Residential Mortgage Group (PRMG) has announced the recent hiring of Sean Drake, regional branch manager for the Northern California region. GSF Mortgage has named Heath Pomeroy as regional manager for Des Moines, Iowa. Gold Star Mortgage Financial Group has named Dan Sugg executive vice president and national sales director. Bay Equity Home Loans has announced the opening of a branch in Rohnert Park, Calif. to be managed by mortgage industry veteran Tim Carroll. 360 Mortgage Group LLC has announced the hiring of seven new account executives that will partner with mortgage brokers in Arizona, Florida, Illinois, Michigan, Missouri and Nevada. Janine Truman, Kenneth Little, Leigh Ann Verhelle, Kim Bessette, Todd Schertzer, Michael Barnhart and Richard Druce will focus on supporting and growing 360 Mortgage Group’s mortgage broker network in their respective markets. Hank Pruett has joined ValuTrac Software as vice president of sales. The Mortgage Bankers Association (MBA) has announced the addition of Barbara Hanson as director of education sales. LoanLogics has expanded its compliance unit with the additions of Mike Vitali, senior vice president and chief compliance officer; Gerry Glavey, senior vice president and chief credit officer; and Joe Helfrich, executive vice president and chief legal & risk officer. WFG National Title Insurance Company has added Sandra Pfeiffer to its compliance and audit department in the role of senior vice president, senior auditor. WFG has also announced that Brenda Olson and Chancey White will lead

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By Ryan W. Birtel ontemplating housing as an investment can lead to fascinating dynamics. Ever since the mortgage crisis, there has been an explosion of discussion on this topic, often challenging folks to question their traditional mindsets while in search for explanations as to why it happened. Even at a simple starting point of considering the merits of measuring housing value from either the fundamental affordability of monthly payments or from a more technical contrasting of comparable sale prices, such choices have consequences. When a car salesman focuses their customer’s attention on affordability, common wisdom suggests it is with the intent to convince the buyer to pay more for the car in question. This is not far from the reality in housing, where focusing on monthly payments tends to shroud the implicit assumption of ever rising sale prices. The problem is, as we’ve all learned, housing prices can go down. So, while affordability certainly facilitates utility, i.e. getting into the home, sale prices are generally relied upon to track investment success. Consider the actions of the Federal Reserve in response to the recent financial crisis, a crisis which is defined, in part, by drastic drops in housing prices. By reducing borrowing rates, thereby making monthly payments lower, the Fed put a deliberate positive pressure on those same housing prices (all asset prices really). Does this mean the Fed is performing the car salesman “misdirection?” Maybe a little, but to some extent the Fed’s actions were a prudent measure to stall the economy’s recessionary spiral, defined by those falling prices, and get us into a temporary state of recovery. However, the fact that rates have zeroed out also implies the end of rising sale prices of homes due to Fed macroeconomic policy which, for those that include themselves as participants in the real estate market, may suggest revisiting housing prices from a more local perspective. Does the current macroeconomic state of affairs suggest it’s a poor time to buy a house? Not necessarily, however prudence warrants a review of some basic concepts regarding real estate valuation, such that buyers, financiers and even regulators, can make fully informed choices. And yes, financiers and regulators are also “buying” homes since their commitments to the buyers, and each other, represent a forward agreement to own those homes at a slightly lower price than what the buyers paid. Since money is not free, it stands to reason that the Fed will need to raise borrowing rates in the future,

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notwithstanding the whispers of “negative interest.” As such, while housing prices reflect an infinite number of influencing factors, all real estate values will at some point, or over some timeframe, have to endure as much negative pressure as they enjoyed positive pressure at the hands of the Fed. This can be considered a systemic, or systemwide, risk to prices. So how can one identify real estate that will exhibit robust value in the face of systemic downward pressure? Commercialization is a common tactic, in that, improving or re-purposing property to generate current income will reduce the impact of a lower future sale price. Though most appropriate for institutions, individuals tend not to rent rooms out of the house they live in. Accordingly, the choice to forego the current income option means the future net liquidation value of any prospective home is going to need some other form of support, some positive pressure specific to that property. Only land goes up in value. Though first taught this during my real estate appraisal training, it’s not a concept I hear or read, in discussions amongst the general population of homeowners, investors, economists, etc., so let’s recall. When you buy a house, what you are really buying are the legal real property rights associated with the land along with the existing improvements on the land, i.e. house, utilities, etc. If you consider that physical improvements always depreciate over time, requiring constant curing, it’s easy to realize that the house itself, an improvement, is not really an appreciating investment. While commercial real estate investors may set rents high enough to cover depreciation, a homeowner will need to cover such expense out-of-pocket. Imagine the moment you drive off the lot in a brand-new car, not only does the car’s value diminish immediately, not keeping up with its necessary maintenance will also lead to both the function and value of the car diminishing further. The same logic applies to a house. Without a way to monetize a house while living in it, one must focus on the land itself when considering the ability, or likelihood, of the value of the real property rights exceeding the physical depreciation, hence providing a positive return on sale. Over-improvement, such as making alterations or enhancements to a property that cost more than the market value added to the property, while being a money losing proposition for the owner of a home, will in fact raise the price that a future buyer will pay relative to what the owner originally paid for the home prior to being improved. In other words, if you renovate your completely functional kitchen for $50,000, the next owner may only give you $25,000 more

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for your house due to that renovation. The price of the home may rise, but the seller still lost money. When many homeowners in the same region or neighborhood, begin over-improving their property, it will actually put positive pressure on local land values and therein lays the key to identifying properties with robust values in today’s market: Find areas where there’s consistent and abundant over-improvement. This should sound somewhat like momentum trading in the stock market, as investing in nondividend and non-utilitarian corporate equity is similar in concept to investing in land, which is the non-revenue and non-utilitarian component of residential real property. The fact that a homeowner can enjoy the utility of the improvements, while having a level of control over their land commensurate with their capital’s risk profile, i.e. equity, gives housing its distinct nature as an investment class (a stock market investor typically does not enjoy those same benefits). Yet, this does not take away from the point that land values are inherently pro-forma, speculative, subjective and ultimately reinforced by the local ‘herd.” While never wise to follow a herd as a rule, finding neighborhoods exhibiting real long-term equity capital investment is going to give homebuyers and financiers some measure of confidence they could not claim otherwise. This logic has interesting ramifications as we circle back to the current macroeconomic state of affairs and the dynamic of housing finance reform. Reform has been another big focal point since the crisis, and amongst the many ideas, goals and policies being discussed is the notion that such reform should target wealth creation. Some questions come to mind. How exactly does the homebuying experience create wealth? Can your home’s value rise above the price you paid after accounting for depreciation? Can a homeowner enjoy the benefits of rising land values without contributing the additional capital required to fund the over-improvements which in turn pressure those land values higher? Is your home simply a reflection of your wealth, as opposed to a means of building that wealth? Consider the answers to these questions not from your personal perspective, rather from that of a financier or macroeconomic regulatory authority. Of course you could buy the small house in a neighborhood which is experiencing a high degree of renovation, and see your land values increase without doing any over-improvements yourself. In a sense, you’d be riding the wave created by your neighbor’s capital investments. Unfortunately, though you may be able to succeed with this passive strategy, not everyone in the neighborhood could, otherwise there would be no wave to ride, so to speak. Not everyone can “beat the market.” It stands to reason then, from a macroeconomic perspective, it might not be prudent to view homebuying as a path to wealth creation for all, notwithstanding the ability of a necessarily small percentage of

the population that could “ride the wave.” Put another way, if wealth is most accurately defined as the result of accumulating net savings through maximizing income and minimizing expenses, and this strategy works for all, while housing is only a measure of wealth for most while creating real wealth for only a few, then policy goals of creating long-term wealth should probably not be focused on increasing homeownership. That is, unless wealth is to be achieved by first increasing the income of those who facilitate homebuying, the advocacy for investment into non-income generating and depreciating assets may actually be working against wealth creation? In this light, the Federal Reserve’s mandate to promote employment takes over from where their rate policy leaves off, as without income growth there can be no real wealth creation, nor the long-term stable housing price appreciation that follows. Whether or not the Fed is successful in facilitating widespread wealth creation, individual homeowners can certainly target the localities exhibiting tell-tale signs of increasing income. As homebuyers look for over-improvements and regulators tackle wealth creation, financiers find themselves somewhere in the middle. True financiers, as opposed to those who only facilitate transactions, have the unenviable task of trying to manage their exposures to systemic risks without inadvertently adding to such risk. Due to their desire to mitigate individual borrower credit risk, and as an unavoidable byproduct of their size, institutional financiers generally employ a diversification strategy to investing, aka lending. What this diversification leaves in its wake is, by definition, a non-diversifiable, systemic residual risk profile, implying only the risks that affect everyone will affect them. Given the current macroeconomic situation, that puts financiers in a much more risky position than homebuyers, in that while both have to contend with the same future negative pressure of borrowing rates, how can a large-scale financier chase over-improvement? How can they implement any effective local strategies, characterized with idiosyncratic risk profiles, when the act of diversification itself is designed specifically to dampen the impact of this type of risk taking? This is generally where financiers turn to the concepts of risk sharing, i.e. government guarantees, private capital, downpayments, capital reserves, etc., as a means to manage their residual risk, and this is where the most dynamic discussions are happening within the real estate financial reform arena. Ryan W. Birtel is founder and managing director of Eolith Advisory Ltd., an independent consulting firm that provides economic and financial advisory services related to the real estate and structured finance markets. He may be reached by phone at (646) 707-1502 or e-mail ryan.birtel@eolitadvisory.com.

n Investment?




Massachusetts Housing Finance Agency Publishes Content With AllRegs By Krista K. Sabol

Krista K. Sabol is vice president of marketing and communications for AllRegs. For more information about AllRegs and its publishing services, visit www.allregs.com or contact AllRegs at (800) 848-4904, Monday through Friday, between the hours of 8:00 a.m. and 6:00 p.m. CT.

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AllRegs, the leading information provider in the mortgage industry, is proud to announce that the Massachusetts Housing Finance Agency (MassHousing) will now leverage the AllRegs technology platform and publishing expertise to manage and maintain its policies, procedures, and guidelines. The MassHousing Seller Guide will be available in the MassHousing Lending Library accessible to visitors through their Web site. Users that subscribe to the AllRegs flagship product, the Single-Family Lending Package, will also be able to access the content through the State Housing Finance Agency section of Agency Guidelines. Users will benefit from a variety of productivity tools, including an electronic Table of Contents tree with links to guidelines, a robust search engine that features a thesaurus with industry jargon and relative matching results. In addition, the MassHousing library features an Announcement Summaries section to notify users of changes to content, delivered via E-Alerts, and an email feature to share content with colleagues. “We at AllRegs are excited to work with MassHousing to publish their guidelines through our proprietary technology,” said Dan Thoms, executive vice president of AllRegs. “Further, their content is a valuable addition to our library of mortgage industry content for our Single-Family Lending Package subscribers.” “The world of mortgage lending and affordable housing is always changing and evolving,” said Peter Milewski, director of MassHousing’s Home Ownership Division. “AllRegs is a dynamic tool that allows us to provide information to our lenders more efficiently than ever before. We expect that this is just the beginning of our relationship with AllRegs and they will be a partner going forward as we introduce new loan programs that help us to achieve our mission of making affordable loans available to homebuyers with modest incomes.”

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marketing dollars only in those resources that produce the most favorable return-on-investment (ROI).

and seize them. Remain positive and focused, and set professional and personal goals.

Seek opportunity

Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and 20102011 president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431, e-mail aharris@vantagemortgagegroup.com or visit www.vantagemortgagegroup.com.

The year 2014 may be a challenging one, but it will be a year of opportunity. Down or restricted markets always expose an area of great reward and future growth. For those who embrace the change and enter the year motivated and excited, you’re more likely to see these opportunities

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ognized this and now offer health club facilities for just this purpose. They know that a healthy employee is much more productive. So beginning a fitness program of some type to improve and/or maintain a high level of well-being is a benefit to your reaching success. An additional item to consider in reaching a high performance level is to make a commitment to do more than is required. We can have the energy (mental, emotional and physical), but without the desire to do so nothing will happen. Having the desire to perform at greater than adequate levels is primary. One of the hardest things we sometimes have to do is analyze and evaluate our performance. But we must! Until we identify a problem area, we cannot begin to improve. Strengths can only be recognized by knowing our weaknesses. Today’s competitive workplace does not allow the luxury of our performing at lower levels. Those who do so are at risk of being replaced. Service above and beyond has never been more important. This poem probably expresses it best. I do not know the origin, but wish to share it with you.

Good Enough Isn’t Good Enough My child, beware of “good enough” It isn’t made of sterling stuff It’s something anyone can do It marks the many from the few. The flaw which may escape the eye And temporarily get by Shall weaken beneath the strain And wreck the ship, the car or plane. With “good enough,” the car breaks down, And one falls short of high renown. My child, remember and be wise, In “good enough,” disaster lies. With “good enough” the shirkers stop In every factory and shop; With “good enough” the failures rest And lose the one who gives the best. Who shops at “good enough” shall find Success has left them far behind. For this is true of you and your stuff; Only the best is “good enough.” I challenge you to do your best and enjoy a wonderful measure of success in 2014! Mary Ellen Heathcote, MML, CMI, CME is past national president (1998-1999) of the National Association of Professional Mortgage Women (NAPMW). She may be reached by phone at (919) 961-0640 or email mheath6777@aol.com.

Correction … Due to a production error in the December 2013 issue, the incorrect listing appeared for Robert Pieklo on page 70 in the “40 Most Influential Mortgage Professionals Under 40” listing. The correct listing appears below: Robert Pieklo Partner, Senior Vice President of Secondary Marketing American Financial Resources Inc. • Parsippany, N.J. www.afrmortgage.com Senior Vice President of Secondary Marketing and Partner Rob Pieklo entered the industry in 2002 as a loan originator, and has acceded to a series of promotions within the organization, including retail sales manager and vice president of retail originations. His current duties include managing AFR’s multibillion dollar servicing portfolio and establishing/maintaining strong investor relationships with brokers/dealers, the GSEs and GNMA. Robert oversees the warehouse facilities and works directly with the CEO and CFO on all corporate endeavors. Rob’s business vision was instrumental in the formation of eLEND, a consumer-direct division geared toward an online purchase-based model. SPONSORED EDITORIAL


Banker toBroker ( P A R T

By Andy W. Harris, CRMS

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Mortgage (QM), in addition to planning around reduced margins and the future tapering of the Fed stimulus on mortgage rates and how this will impact affordability in the residential housing markets. The good news is that with these challenges there always hides an opportunity. The opportunities come to those with a plan and vision to position themselves around trends, putting focus on running a profitable and sustainable business.

Opportunity hides in wholesale

Change your perspective about wholesale operations As I’ve said before, now is an excellent time to be a mortgage broker. The

Overview It’s nearly impossible for those who have not experienced “true” wholesale operations to understand or believe any of this (or want to) in fear of losing margin or control. I can tell you, however, that it is true. I have excellent investor relationships and an advantage in my marketplace due to exclusive wholesale positioning. You don’t lose control, you don’t lose execution or turn-times, and you certainly don’t lose program and pricing options. If you have a bad experience, you have many other options to choose from. The size of your company and number of originators can vary, but you certainly have more controllable expenses at a lower risk and can focus on originations and production. At the end of the day, it’s about offering excellent programs to the consumers you serve in your marketplace while showing a sustainable profit. At some point when the goal is to simply originate quality loans, you have to look at risk versus reward as a business owner. I believe the wholesale lending channel is the most costeffective and profitable means to get product to market and has significant growth potential. It is also my opinion that on average the borrower receives more favorable loan terms and options with more controlled costs and higher lender rebate opportunities. These benefits help balance some of the significant challenges our industry faces in 2014 and trends that appear to continue. The transition from banker to broker is not difficult other than the likely requirement to layoff unnecessary support staff to cut overhead and set up the right broker agreements. 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, e-mail aharris@vantagemortgagegroup.com or visit www.vantagemortgagegroup.com.

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Most every business owner I know who is utilizing correspondent lines in the retail channel is concerned. Depending on the size of the company their level of concern vary, but most are taking notable losses and have since mid-2013. As noted, these trends in restricted production and revenue will continue for most and changes must be made as losses cannot be sustained. The original goal in establishing these lines was to increase profitability and revenue through higher margins and attempting to have more control over the process. Unfortunately, this structure also comes with higher expenses, buy-backs and other risks, capital requirements and overall costs. At the end of the day, a larger gross margin with smaller net profits is not the preferred business plan. Not all companies are created equal and some will sustain or find a solution to build profits again and keep warehouse lines and product mix alive. Others will sell, merge, significantly reduce staff or shut down altogether. There is also another option many must consider if they have a solid operation and brand, which is to simply eliminate the risks and costs around correspondent lines and become a full brokerage. I predict that wholesale lending will grow in 2014 and the trends of separating origination and processing from the underwriting and closing will also grow. People will begin looking beyond the myths, gather the facts and begin questioning why they operate the way they do.

unfortunate part is that many originators and business owners in the retail correspondent channel have poorly and inaccurately judged the new wholesale lending channel, either comparing it to the past or just simply misinformed. Most bankers will do all that is possible to utilize their correspondent lines and only brokering as a last resort for products they don’t have, all at a high lender-paid margin so not to compete with their correspondent line margins, which can cause additional issues with compensation agreements and antisteering requirements. This is not what brokering is about. If you broker questionable loans inconsistently to random lenders for niche programs and higher margins, you’re going to have a bad experience. This is especially true if you are not well-versed on different guidelines, products and procedures. There will always be issues and challenges for any banker when brokering loans and this will not change. If you adjust your operations and create the same flat lenderpaid margin with all the top wholesale lenders in one pricing engine for all your agency, non-agency and government loans, you will clearly see what investors are dominant on all levels. You will also be able to comply with all regulatory changes more easily providing the challenges on fair lending creditors face. The new mortgage brokerage firm operation offers many advantages. I can personally tell you firsthand that there are excellent wholesale lenders with lightning-speed execution, market leading pricing through competition, direct agency guidelines and many that are table funding. The ability to compare is priceless without the pressure to steer toward lines, resulting in more potential for career growth. In addition, you have full control with what I believe to be the most experienced staff in the industry. Isolating underwriting and operations separate from retail origination, processing and operations does not limit control. Wholesale lenders are also our business partners looking for more business. There is an advantage having this kind of relationship and the many choices without the special interests.

NationalMortgageProfessional.com

ast month (see page 60 of the December 2013 issue of National Mortgage Professional Magazine), I discussed the topic of an originator going from a “Banker” to a “Broker” in 2014. I know, many are shocked by this title and topic, but I have been absolutely shocked that this topic has not discussed more over the last several years. I truly believe it has something to do with the motive and intention behind the author and invalid fear about wholesale lending overall in our industry. I have nothing to sell or gain by sharing this information, but usually that is not the case when we hear the “Broker to Banker” talk. As a successful self-originating mortgage broker and business owner myself in today’s mortgage climate, I know what I am sharing to be fact as it pertains to the current wholesale mortgage channel and what it offers consumers, originators and business owners of the brokerage. In this edition, I wanted to focus on the “macro” view from a business owner’s perspective rather than the “micro” view from the originators perspective. There are a few interesting trends that we all need to be paying attention to. As of the date of this article near the end of 2013, the Mortgage Bankers Association (MBA) reported that profits for independent mortgage bankers and subsidiaries fell by approximately 50 percent in the third quarter of 2013. This marks the fourth consecutive quarter that production profits have decreased. The fourth quarter is also following these trends, primarily due to per-loan costs that are reaching new highs, production volume dropping, and reduced secondary marketing income. In addition, the MBA predicts a 32 percent reduction in mortgage originations in 2014 as compared to 2013. So what does this mean? This means that there are challenges ahead for those that cannot monitor expenses, overhead, and risk. We’re going to face a mortgage market with less transactions and more competition. Creditors also have to navigate and deal with the challenges around the Qualified

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The three percent points and fees cap will not impact good mortgage brokers. Simply control overhead through lower payroll requirements and be competitive on margins and fair compensation to originators. Loan-level price adjustments (LLPAs) were just significantly increased in December of 2013 making the Average Prime Offer Rate (APOR) + 150 basis points test under the qualified mortgage (QM) rule for even more interesting for creditors to calculate with conventional loans and the U.S. Department of Housing & Urban Development’s (HUD) definition which is more conservative + 115bp. I am personally concerned by these LLPA increases while rates are positioned to rise as well in 2014 and the challenges continue for affordable housing and access to credit on all levels.


“In 2014, originators will need to make decisions about more than simply the changing market.”

2014: The Year of Mortgage Originator Free Agency By Drew Waterhouse This is the time of year where everyone with an opinion in the mortgage industry offers their take on the trends that will be most influential over the next year. I have done my best for the past several years to identify the trends that I believed would truly impact the mortgage industry in the upcoming year.

Among my published industry trends for 2013 were: The emerging purchase market, accelerating industry consolidation, high valuation of self-sourced, purchase oriented originators and a move to recruit younger talent into the industry. All of these trends hold over for 2014, with the final trend being modified

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California Association of Mortgage Professionals

Sales & Marketing Conference February 6 & 7, 2014 Newport Beach, California We provide brokers the tools needed for success! Two-day full conference includes: All Presenters + Compliance Training Speakers Include: Roberto Monaco Brian Stevens Dave Savage Bart Shapiro Frank Garay Karen Bates Ginger Bell

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slightly to include an emphasis on recruiting more diverse originators to particular market segmentation targets. However, I don’t wish to focus on these trends, since they are a “been there, done that” sort of thing. Not that these trends won’t impact the industry, they surely will; but, from my perspective, there is a more significant trend that will influence all of us in this industry. My perspective is somewhat unique. As managing director of a nationallyactive recruiting and placement organization, I have the opportunity to interact and strategize with both top lenders and top candidates. I am allowed to hear the needs, wants, hopes and sometimes dreams from countless leaders who drive this industry forward. Our firm is involved in detailed discussions specific to sales growth and retention, marketing, operations, compliance and all so often company culture. As a result of this unique perspective, my take for 2014 is atypical from previous exercises, as I see a single overriding trend being dominant throughout the year. In early 2014, the mortgage industry will be coming to grips with the full realization of the new external context in which the business takes place. Throughout the year, there will be the culmination of a “structural re-engineering” of the mortgage sales and manufacturing processes. Therefore, my overriding trend for 2014 is what amounts to free-agency for successful originators. According to Wikipedia, in professional sports, a “free agent” is a player who is eligible to sign with any club or franchise, i.e. not under contract to any specific team. The term is also used in reference to a player who is under contract at present, but who is allowed to solicit contract offers from other teams. Within the mortgage industry, there are some restrictions on originators abilities to move to other lenders, but in general, they do have the ability to make such a move when they believe it to be in their referral partner, clients and personal best interest. At Hammerhouse, we call the proper alignment of interests between originators, managers and leaders with their employing lender a “Model-Match.” With so much change in the industry the best

originators will have to determine which lender offers them the best “ModelMatch” for continuing success. We have previously defined ModelMatch as follows: “Model-matching is the process of improving the mutual results from relationships between lenders and originators. It is a comprehensive process of assessment of both parties across a wide range of factors, including leadership, culture, business type, operations, technology and geography. This process involves due diligence and consideration of both objective and subjective factors of a relationship in order to produce a holistic picture of positivematched and negative-matched areas within the relationship.” More simply put, Model-Match is the proper alignment between companies and their key employees. With such comprehensive changes coming—the purchase market and the advent of qualified mortgage (QM)/Non-QM, 2014 will challenge all mortgage industry participants to evolve. The decisions they make may impact their assessment of current ModelMatch. Companies will be asking: “Who are we now and what type of originators are best suited for us?” Originators will be asking: “Who am I now and what type of company is best suited for me?” I previously used the phrase “structural re-engineering” of the mortgage sales and manufacturing process to describe the changes that all firms and individuals will be impacted by as a result of rising rates, dominance of purchase transactions, implementation of QM guidelines and emergence of non-QM products. I believe it is useful to borrow some concepts from structural engineering to further illustrate how all industry participants will be forced to check their ModelMatch throughout the year.

Structural loads A structural load is simply any force that is applied to a structure. The two primary types of loads are dead loads and live loads. A dead load is a force that is relatively constant over an extended time. For a mortgage company or an individual originator, an example of a dead load is


the cash-flow required to sustain operations or lifestyle. A live load is unstable or moving in nature. Examples from the mortgage industry include rapid market or regulatory changes that impact volumes, revenues and profits. When more than one type of load is acting on a structure simultaneously it is known as a combination load. Without question, all mortgage industry participants are facing a combination load of established cashflow requirements and unstable and shifting market and regulatory demands. Is your company and your career designed for these loads? Will the design and retro-fitted design that takes place throughout 2014 be successful in supporting your company or career or will a structural failure take place? Might a different mix of personnel or a different corporate design be necessary to avoid such structural failure?

In 2014 lenders will need to make decisions regarding how they will implement the QM requirements. They will have to address compliance processes including whether to manage risk internally or through outside consultants. Lenders will have to address the dominance of purchase business, confront the necessity of new lead sources and the likelihood of lower volumes. Are your operations designed for success in this environment? Will you be an exclusively QM loan shop or will you move to add non-QM products as they emerge? Will you seek to divest yourselves of certain assets or people? Will you seek to expand to grow revenues or to address current areas of need? Are you prepared for the extra scrutiny and risk that will exist? In 2014, originators will need to make decisions about more than simply the changing market. Yes, higher rates and

the purchase dominance will put tremendous stress on business and require a proactive response. But so will the new regulations, as individual originators are likely to be held personally accountable by regulators for shortcomings in the origination process. Is your business prepared for individual liability? Leaving compliance questions to your employer in the future without careful examination of the protocols could be a costly and even career threatening, mistake. The combination load on the structures of mortgage companies and individual mortgage careers will be felt throughout 2014. Model-Matches that are positive today may not be so after Jan. 10, 2014. Model-Matches that work in March may be ineffective or even harmful by June. The upcoming year is going to be one of stark change—some companies will cease to exist, some careers will effectively end.

Hence the necessity for successful originators to approach 2014 as a free agent in professional sports would—by considering all options, and the direction and resources of your current team, to ensure that you are aligned with the right partner to maximize your career success. Only those that are properly Model-Matched will emerge from 2014 with a firm foundation for success in the newly defined mortgage industry that will last for many years to come. 2014 truly will be the year of originator free-agency. Drew Waterhouse is the managing director at Hammerhouse LLC, a national recruiting and strategic growth firm for the financial services industry with mortgage sales and leadership placement at its core. He may be reached by e-mail at drew.waterhouse@teamhammerhouse.com. 55

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“When choosing a potential employer, one should consider the mortgage bank’s view of debt, growth, new products, and regulatory compliance …”

Corporate Culture: Why It Should Matter When Selecting a Mortgage Bank By Chris Jones

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There are a seemingly endless list of books and articles written by organizational behaviorists who opine on the importance of culture to any successful organization. As with any behavioral science, there is often disagreement when the results are measured qualitatively rather than quantitatively. In full disclosure, I am not an organizational behaviorist. Nor am I an expert on corporate culture. But there are a few observations related to an organization’s culture that I have come to believe are important to any successful business, and particularly important to a salesperson’s choice of mortgage companies with whom he/she decides to apply their origination talents.

Observation number one Every organization has a culture whether consciously created, or unconsciously allowed to be defined. Great organizations invest time and

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effort in defining and emphasizing that culture by aligning leadership, measurements, feedback and rewards with those activities that reinforce the cultural objective. Less effective organizations, by not investing time and effort, allow their culture to be defined for them, even if that cultural message suggests that they have no cultural focus.

Observation number two An organization’s culture is largely a function of its core values. Core values let critical stakeholders such as customers, employees, vendors, investors, capital markets partners, and regulators know what the company is all about. Core values provide a filter that aid in the decision-making process at all levels of an organization. Like the larger notion of corporate culture itself, core values are either stated or unstated. If these values are not consciously defined by

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leadership, they will be unconsciously defined by the organization. That’s a tough way to achieve an organization’s goals and objectives!

Observations number three There is no “right” answer when it comes to corporate culture. Corporate cultures are like fingerprints, no one organizational culture is exactly like another. The mortgage industry is proof enough that many very different organizations can find incredible success. And that is just the point! The only measure of a “good” culture is whether the culture aligns with the organization’s vision, business strategy, and its own measures of success. With these observations as context, every mortgage salesperson should consider what they value most in a potential employer’s culture. Let me suggest five cultural questions one should evaluate carefully when considering a new mortgage bank: Are you seeking a culture that values entrepreneurialism or institutionalism? The last five year’s regulatory changes require that all mortgage banks demonstrate a level of institutional control on matters of compliance and loan quality. Without these, a mortgage bank’s days are numbered. However, if we assume that all mortgage companies have these required institutional controls, there are still very clear cultural differences about how a company values the entrepreneurial spirit among its salesforce. I define entrepreneurialism for salespeople as the flexibility to establish one’s own growth strategy, define one’s own level of career commitment, and set one’s own goals for what he/she wants to accomplish. A salesperson or manager who has never worked in an environment which demands performance to production goals may experience a cultural disconnect with an employer that sets individual production goals and measures performance. Conversely, a salesperson who has

always worked successfully with individual goals and measures of performance may find an entrepreneurial mortgage bank without these structures un-motivating. Of course, mortgage banks are not only entrepreneurial or institutional. There are many mortgage companies that offer flexibilities to appeal both the entrepreneurial and institutional salesperson, as well as the sales person that may be some combination of both. What is the organization’s strategic approach to matters of regulatory compliance? Unfortunately, on many compliance matters there is limited or unclear guidance from enforcement authorities, leaving mortgage bankers to “interpret” the expectations themselves. There are often wide differences in these interpretations. These differences are rooted in different attitudes about compliance, as well as different levels of effort made to gather needed expertise and educated opinion from reputable counsel, industry associations, and the regulatory entities themselves. A mortgage bank’s attitude as it relates to both the spirit and the letter of every point of regulatory compliance is an important component that defines a mortgage bank’s culture (and potentially its future). Is the company considered innovative and an early adopter of change, or is its culture to let others lead and define the industry’s change? There is no question but that any successful mortgage company in the last five years has had to embrace change as standard of doing business. Here again, there is a great amount of variation in strategy as it relates to how mortgage companies manage change. Some organizations are innovative, led by thought leaders who make significant investments to influence change and industry direction. While there are costs associated with innovation, measured in both dollars and brain cells, there are great advantages in the form of reputation building


and competitive differentiation. By contrast, late adopters may miss out on the growth opportunities that come from innovation, but they avoid the high investment costs and distractions that come from development. Are strategy and operating decisions determined and announced, or are decisions made with participation from originators and field managers in an effort to reach consensus? Leadership in every organization must make decisions on behalf of the company. How leadership generally makes these decisions is an important variable to consider when selecting a mortgage banking partner. Generally, decisions can be made in one of three ways: One, by consensus with an effort to enroll all those impacted;

two, by majority vote of those impacted; and three, by the person ultimately responsible for the decision announcing it without participation from others. When making an employer choice, one should investigate to understand the decision-making method most utilized by leadership to ensure alignment.

Mortgage banks that take great risks may not provide a stable and sustainable business model that can survive the test of time. When choosing a potential employer, one should consider the mortgage bank’s view of debt, growth, new products, and regulatory compliance (yes, this again). Most importantly, does the bank have good mechanisms and measures for What is the organization’s attitude assessing and taking risks? as it relates to risk management? The prospective mortgage bank’s risk In summary, mortgage companies management views is the final cultur- make very significant investments in al factor I might suggest is important finding and sourcing the needed talin any choice an originator or sales ent to build their organizations. manager makes in an employer. Originators and sales managers make Again, there is a spectrum of choice as difficult, life-disrupting choices to it relates to the appetite a mortgage pursue other employment options bank may have for taking on risk. that provide opportunities for career Mortgage banks that don’t take risks advancement and growth. When core sacrifice growth and opportunity. values are not considered, and are

subsequently misaligned, there’s a very high probability of frustration and failure that results in unnecessary expense among both the employer and employee. No mortgage banking organization is perfect, if for no other reason than the fact that customers, both internal and external, have different expectations of what perfection looks like. But organizations and employees can look past many shortcomings if there are mutually shared core values and cultural views. Chris Jones is senior vice president of business performance for Primary Residential Mortgage Inc. (PRMI), an independent mortgage bank headquartered in Salt Lake City, Utah. He may be reached by phone at (801) 596-8707 or e-mail chjones@primeres.com. 57

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“Good managers are true leaders who make their team members better.”

Future Success Begins With the Mirror By Brian Koss

Like the fears of those concerned with the change at the Millennium (Y2K) or the fears people felt about 12/21/2012 of the Mayan calendar, the meltdown from the end of the bond bull market has weighed heavily on the shoulders of all mortgage bankers. However, while it is true that too many business models are meeting an untimely end, it does not mean the business itself is dead. As the new mortgage industry evolves, mortgage bankers and

mortgage sales professionals who share the same vision and attitude will need to find each other to mutually grow. For both groups to create a successful future, the key is understanding who you are and what you’re about. As for the mortgage sales professionals, this population seems to fall into three buckets; lifers, who won’t move unless the building is on fire (50 percent); gypsies, who move anytime their pipeline is empty

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(25 percent); and fence sitters, who aren’t particularly looking but, if given the right opportunity or if made angry enough, will make a move (25 percent). Because some buildings actually are on fire and most pipelines are at all-time lows, over 50 percent of sales folks are on the market. Considering the fact that the majority of mortgage banking companies are equally as desperate and offering the kitchen sink, you have an active and liquid marketplace. Meanwhile, the mortgage world is split between those who need a brand and those that are a brand. Knowing where you truly stand, whether you are a company or a loan officer, is essential to making the right decision about the future. There is nothing wrong with either approach, but the skills and personality have to match. For sales professionals, the most determining factor is whether or not they can conquer call reluctance. Using personality testing or probing interview questions can help companies uncover that core skill that you can’t teach. Merely because a sales person has written lots of loans for a lead-provided business model does not mean that he or she doesn’t suffer from call reluctance. While it is true that training and coaching can create a steely determination and help someone overcome that inherent trait, they would be in the minority.

In consideration of brands If you choose to work for a brand, make sure that brand truly understands its brand and its real value in the market. Some companies believe their brand can do no wrong and any borrower should be honored to work with it. It is rare for a brand to possess a strong, accurate identity, good rates and loan programs, combined with quality fulfillment. When you work for a brand, the customer is the brand’s customer, not yours, so typically, the compensation and supportive marketing won’t be there. If you’re already working for a brand and are not happy, really look deeply to discover why. If you suffer from call reluctance, not making enough money because of the pay structure should not be the issue. Maybe you need a different brand instead. Or, if you are confident you can build a personal referral base, maybe it’s time to be working for an independent

mortgage banker, where you truly only “eat what you kill.” At the same time, there are some independent mortgage bankers who are moving to work for brands. Many have seen their pipelines dry up as their businesses became dependent solely upon their databases, and they had completely strip-mined everything they could from their customers. However, entering into a relationship with a brand in this way is never healthy. The banker is there because its business approach failed, not because it wants to be there. Bankers in this situation are always kicking themselves for not building their referral bases and are always unhappy about compensation and operations. You need to believe in the company you work for and know it is the best fit for you and your customers. But the goal of a brand is not to fit all customers; it is to cross-sell its customers and convert new ones. They don’t care about being an advocate for your customer or referral source.

Challenges of the “New Market” If you are an independent mortgage banker or sales professional whose business has dried up and are wondering where the best opportunity lies, you have to answer some key questions. If you have been buying leads, you are faced with a shift in the market toward a mostly purchase-driven business. The cost of leads, the pull-thru and the gestation times have all changed, and this change could call into question your compensation model, the skills required of your sales folks, and your technology. A new approach will be required to pursue and foster relationships in this environment. The opportunity is there, but can you make the painful decision to shut down the old and fully embrace the new? On the other hand, if you had a purchase based-business since before 2000, then you likely built it on referrals over time. Over the years, you did enough things right to grow a database of happy customers, who referred their friends. Then you refinanced them when the market shifted, while continuing to make a few purchases. Now is the time to ask yourself whether you can go back and do the basics of building your business all over again. And if you can, do you really want to? As we get older we become more fearful


because we know too much and fear the worst. We can develop call-reluctance unconsciously by rationalizing from our experiences. We say things like, “I won’t call on that referral source today because they were rude to me that one time,� or “They tend to give their loans all to that guy,� or “Mondays are always busy— maybe next week.�

Finding a good manager Sales professionals who need to get back on track and stick to it often hire a trainer or coach. A good sales manager should serve this purpose for loan officers (even though no one wants to be “managed�—they want to be led, supported, trained or coached). However, in our world of producing managers, you sometimes only get what you need from a manager if you communicate clearly what that is. Like a marriage, it involves hard work, honest discourse,

and a healthy understanding of mutual respect for the relationship to work. Many times, the company is right but the manager is not—or vice versa. However, it is harder for a company to change than an individual. If you are at a good company but have an imperfect relationship with your manager, working on that relationship is important. How the company handles that manager will also say a lot about your choice of them as your home. Good managers are true leaders who make their team members better. You can frequently see these teams stay together throughout multiple company changes, sometimes for decades. But still, your individual needs must meet the expertise of that manager, who will be your coach. Today, most recruiting is done through a corporate recruiter or human resources department and not the branch manager, so much of the due diligence falls to the

loan officer to be sure that the local manager is as strong as those higher up the management chain.

Those left behind Amazingly, there are still many zombie loan officers and companies “alive� today who are living in denial about the new marketplace. Many of them fall into the “gypsy� camp, moving from firm to firm, casting aspersions and leaving a trail of legal and financial destruction behind them. Sadly, some of them are blessed with zero call reluctance and can make the phone ring. But that same audacity to not care what people think is also a curse without a standard of quality or a moral core. The mortgage bankers and loan officers who fall into this group will find their businesses continue to erode over time. In today’s world of zero tolerance for misdeeds, the habits of the zombies are huge

liabilities as well as a cancer to their company’s culture. Eventually, compliance and production headwinds will push these folks out the business. Really assessing who you are today and how you got there is essential before you decide where your future lies. Once you have that clear 20/20 vision on yourself, then you can match yourself to the options out there today. There are no great companies—only great “fits� for those who truly know themselves and what they need. Once you find that fit for yourself, the future immediately gets a lot brighter. Brian Koss is executive vice president of Mortgage Network Inc. With more than 25 years of mortgage banking experience, Brian has trained hundreds of loan officers over this career, including many top producers. He may be reached by e-mail at bkoss@mortgagenetwork.com. 59

Markets may be volatile, but there’s one thing you can always count on, the total commitment of our Mor tgage Team. Loyalty, continuity of ser vice and our dedication to protecting the integrity of our relationships are just a few of the things that set us apar t.

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“A company must have a presence within each branch and have an accurate idea of what it is doing, while maintaining a healthy respect for the branch manager’s responsibilities and capabilities.”

How to Ensure Lasting Partnerships When Hiring Branch Managers By Criste Linkletter Hiring within the mortgage industry is challenging, given that every company is in competition to set itself apart. Hiring branch managers in many ways presents more of a challenge, given that branch management positions require employees who can both maintain autonomy and act as successful brand representa-

tives. The process for hiring such a complicated position, then, cannot simply be about a basic search and initial training. Instead, the hiring process can be broken down into three stages, all of which are crucial when hiring branch managers: preparation, selection, and maintenance. The hiring process is exactly

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that—a process—and involves more than interviews and employee searches, in fact encompassing the span of the relationship between a parent company and its branch. Prior to beginning an employee search, it is essential for a company to prepare by defining, in clear and final terms, its corporate culture. Knowing what it offers, its roots, its vision for the future, and what it is not willing to compromise on will allow a company to staff its branches appropriately and efficiently. While defining these parameters may also narrow a company’s employee and customer pools, capitalizing on its unique elements will go a long way in solidifying corporate culture and will ultimately allow for more thoughtful expansion and better client service. Having the confidence to let its differences set it apart, rather than trying to be everything to everyone, builds a company on an unshakeable base of authenticity. Potential employees will value the 10 percent that makes a company different above the 90 percent we all have in common. Establishing and declaring what sets a company apart determines who will be a good match when the process of seeking out potential candidates begins. For example, a small company ranked number one in customer service five years in a row will market towards a branch manager that has been building a business platform on service. If a branch manager uses social media tutorials to gain referrals from real estate agents, a company recruiting that manager needs to highlight its top ranked Facebook page in early conversations. Once corporate culture is clear and branch manager selection begins, it is essential to ensure that all parties are fully aware of the others’ expectations. There are myriad reasons employees end up leaving one company for the other, and many of those are unavoidable; however, companies can and should ensure their employees are not leaving due to undelivered promises. Withholding or denying a company’s culture in these talks for the sole purpose of signing on new business is only a disservice to both parties in the long run.

Though it is sometimes tempting to onboard a branch solely for immediate loans, there are more factors to consider, and a company must be able to walk away if the fit is not right. After fairly and diligently going through all documentation of a branch application, a hiring committee that cannot get past one aspect of a manager’s personality or business model must say “No” in the best interest of the company as a whole. These hires affect the daily work environment of large portions of a company, and it is imperative to hire in a way that makes it possible to maintain the atmosphere a company has carefully crafted. Furthermore, new hires take on the company name, and protecting brand image is a primary concern. A company must weigh in realistic terms the value of bringing on a branch, and if it is not the right fit, move on; the next person might be the right fit and will be worth the time investment in the contribution he or she makes. Remaining dedicated to the level of transparency presented up front ensures the ability to make an honest decision about a candidate. Longevity and sustainability are goals for all involved in the mortgage industry. No one wants to be part of a company that fades out and cannot survive. In turn, a company should work for its branch managers to support them for the long-term. An employee will stick around when they see promises from the hiring stage come to fruition meaning the parent company is dedicated to its vision and promises. Once the perfect match is on board, the process of maintaining their happiness is just as crucial as finding the right candidate. Keeping everybody happy is complicated work, and the first step is recognizing each employee or branch manager as a unique individual. Trying to manage branches by holding them all to the same set of expectations and guidelines will not work. Branches come in all shapes and sizes, some with 18 employees and others with just two, some with producing branch managers and some with none, and some with their own processors and marketing support and some that rely heavily on headquarter staff. Given so many possi-


ble variations, determining the level of support each branch needs is a necessary first step. All branch managers have one thing in common: They want to maintain their business with the best support possible. It is crucial, therefore, to keep the lines of communication open to allow branches to seek support as needed, in lieu of forcing standardized communication procedures where they may not necessarily work. Regardless of its individual needs, a branch is under its parent company’s brand name. A company must have a presence within each branch and have an accurate idea of what it is doing, while maintaining a healthy respect for the branch manager’s responsibilities and capabilities. Emphasizing communication breeds trust; should any issues occur along the way, the branch manager can be confident that assistance from headquarters is simply a phone

call away. Additionally, making the effort to periodically visit each branch, rather than requiring its staff visit the home office, shows the company is invested in the branch’s success and is committed to supporting it in practical, as well as theoretical, ways. A collaborative environment is another element that maintains employee satisfaction. Should an employee make a suggestion on how to improve operations, the company needs to be flexible enough to at least consider it. If the idea compromises corporate culture, it does not necessarily have to put it into action, but listening to the idea and discussing it with the branch demonstrates the company’s investment and respect for its branches’ contributions. For example, Norcom Mortgage has had roundtable meetings with all of our branch managers in one room. Some of them could be originat-

ing in completely different markets, but having them come together to discuss ideas on how the company works as a whole has proven to be mutually beneficial. If their ideas are heard, and implemented, branch managers become more invested in their companies, and in turn the relationship between both parties has more potential for longevity. Offering opportunities for collaboration, and sending the signal that a branch’s valuable input and perspective are welcome, ensures all branches will feel comfortable communicating with corporate management about any number of things. A branch may be thousands of miles away but still feel like part of the team. This can be a very powerful business tool and can augment the success of both branches and the parent company.  The mortgage industry, though a volatile business, is rewarding and excit-

ing. With so many available options for business partnerships, defining exactly the right type of branch manager allows a company to successfully seek out those that will be a good fit for its corporate culture. Establishing a standard of transparency and communication will allow both employee and employer to adapt to changes together, creating a lasting partnership that will not falter and setting a foundation for mutual success. Criste Linkletter is the corporate recruitment officer for Norcom Mortgage in Avon, Conn. She has been in the mortgage industry for over a year after previously serving in a recruiting role as assistant director of admissions for Canterbury School, one of the top independent boarding schools in New England. She may be reached by phone at (860) 606-2796 or e-mail criste.linkletter@norcom-usa.com.

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“The way the manager builds the job description is the first pillar of the hiring process.”

The Rules of Attraction: Making the Right Moves in Mortgage Industry Hiring By Marisa D’Vari

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The mortgage and consumer finance industry is one of the most important to the U.S. economy. Given the increased regulatory scrutiny this industry is currently facing, it is critical to have the right team in place to comply with the stricter oversight and still remain competitive on the harder playing field it’s created. This requires a highly trained and disciplined workforce to manage and execute fastpaced origination, underwriting, closing and servicing processes. As we’ve learned, errors in credit or compliance procedures can be dangerous, hugely expensive and time consuming. Having the right people, processes and tools can be the difference between business success and failure. The current environment demands that mortgage industry businesses raise the bar and arm themselves with the most significant differentiator available—people. To achieve and maintain competitive separation in the vital but often overlooked area of human capital, companies need to reexamine their policies and processes in hiring and training.

Begin at the beginning The way the manager builds the job description is the first pillar of the hiring process. How candidates are sourced can make all the difference in the caliber of employee a company attracts. The linchpin in this area is a well-crafted job description. This helps ensure the company attracts only those applicants with the corresponding skill sets for the position. Virtually every resume emphasizes that the applicant desires a challenging position, even if that is not always the case. In the mortgage industry, as in many others, the first goal of the interview is to understand the applicants and what they desire to get out of the position, as well as their knowledge base and skill set. On their resumes, most applicants simply tailor the language to what they think the potential

employer wants to hear. HR executives typically stress the importance of active communication during the interview, often mixing in targeted follow-up questions to gauge an applicant’s facial expressions, body language and general comfort in their responses. Interviewing applicants who have held high-level executive positions previously can be challenging, particularly in a buyer’s market like the mortgage industry today, with a wealth of experienced, highly trained professionals available. Thus, while solid mortgage experience can be beneficial, it’s not the only quality to consider. HR professionals often find attitude is an essential component and one that can have significant bearing on the final decision. This is especially true in corporate cultures in which everyone is considered an equal and everyone is encouraged to interact together as such.

Making the right match In areas like mortgage credit services, different qualities are required for different job responsibilities and matching them up correctly is a key factor in future success. For example, loan processors and loan underwriters must have front-line origination experience. On the quality assurance front, a law degree or better can be the main prerequisite as the ability to present findings and articulate methodologies and strategies, as well as write and communicate, are extremely important. Because there are generally offensive and defensive elements to a successful platform, they need to coordinate well. Therefore, attributes needed for these roles are different. Candidates need to assess their best attributes and position themselves accordingly. A motivated applicant, even one without direct industry experience, can work out quite well if given adequate training and clear expectations. For a firm like

NewOak, which specializes in due diligence, re-underwriting, loan file review and legal, compliance and technology consulting work for its mortgage credit services clients, one key priority is the need to be responsive due to a constant flow of court deadlines. Applicants, especially those accustomed to working nine to five, would need to understand the different demands. This is also true of former senior financial executives accustomed to only interacting with other senior executives or only performing what they consider ”high level” work. Candidates need to fit into an already successful culture where everyone is expected to work together for the benefit of making all processes flow smoothly with commensurate quality and transparency.

Training for success Mortgage professionals should have a well-prepared script for their duties and how they approach them every day. A combination of precision, speed, efficiency and complexity of the tasks, data and technology involved brings the importance of training and fostering a learning culture a necessity for longterm survival and success. Perhaps the most important ability to be identified in the hiring process is the skill of critical thinking. Applicants who come with legacy underwriting backgrounds have a basic understanding of the process, yet often only from their own individual angle and often do not see the big picture in terms of the entire process, from the time a borrower applies for a loan to the final decision, quality control checks and closing. Moreover, given the volume of business during the peak years, underwriters may have focused on only performing set functions. For this reason, it can be beneficial to create a training program for small groups (10-20) of new employees in order to help them understand the complete process and apply critical thinking to each task. For example, while it may be typical to find 12-15 violations per loan, many of these violations can be easily explained if the employee applies critical, deductive thinking and looks elsewhere in the loan document for evidence the loan was processed correctly.

The project manager also plays a vital role with respect to training. He or she needs to assess the knowledge level of their team and ascertain if the team has the skill set to complete all required processes on a timely basis. If capabilities are lacking, additional training must take place to ensure the project can be completed on time. The project manager must set the clear standards of what is expected and mentor the employee, especially those with “plugand-play” mentalities. In addition to knowledge, managerial and people skills are essential.

Process flow management As mortgage origination, underwriting and quality control are high-volume, precise and data-intensive business functions, process-flow management and technology naturally play big roles. Identifying solutions and working closely with a financial technology team to see process-flow management effectively implemented requires individuals with special skills and interest which may not be related to deep mortgage market expertise. People with a good blend of business, finance, operational management and information technology who have interest in the mortgage industry can be ideal candidates and flourish in these roles with proper training. Advancing in any company connected to the mortgage business is typically a matter of initiative and interest in building the skills to improve the quality and efficiency of the overall process. Classes and seminars are designed to help employees learn the big picture as well as stressing individual roles within that picture. Those employees, who can apply critical thinking, learn about different aspects of the overall mortgage process and work to improve it—as well as themselves—will be well-rewarded. Marisa D’Vari is managing director of corporate communications for NewOak, a financial advisory and investment banking firm providing clients with strategic insight, transparency and risk management. She may be reached by phone at (212) 2090847 or e-mail mdvari@newoak.com.


“If we want to build a large, creative and productive team, we must retain key employees over time.”

Culture is Everything for Employee Retention By Casey Fleming If they are not competent in financial analysis, for instance, how can they possibly advise people on the largest financial transaction of their lives? If they don’t have a thorough understanding of all the loan program options, how can they competently choose a loan program? Take advantage of outside educational opportunities, because they are far more numerous and more indepth than what we can afford to provide in-house. There are some great programs available through state professional organization and through NAMB—The Association of Mortgage Professionals and the Mortgage Bankers Association (MBA).

Attention and reward My old boss was very good at catching her employees doing something wrong. We got used to it, learned how to avoid it, and shrugged it off when we were scolded. A great leader puts effort into catching their employees doing something right. If we want key employees to stay, we have to make them feel appreciated and valued. Good employees do little

Conclusion When we walk into a company, any company, we can almost always tell what the company culture is like. We can feel it palpably. Our existing employees know the company culture intimately because they are immersed in it every day. Prospective employees will also feel it, and in a small industry like ours, learn all about it on the streets anyway. To attract the kind of employees you value, build the kind of company that they value … it’s as simple as that. Casey Fleming is the current president of Silicon Valley Chapter of the California Association of Mortgage Professionals (CAMP) and a mortgage advisor with C2 Financial Corporation. He may be reached by phone at (408) 348-3442 or e-mail loanguide@sbcglobal.net.

Our mission is to use the power of video to complement the written word and inform, educate, enable and empower mortgage professionals with the most relevant, up-to-date information and advances in the mortgage industry. It is our goal to offer worthwhile information to our viewers, while delivering it with the utmost professionalism.

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Education First, we have to have highly effective employees or we may not even want them to stay. We must educate staff to make sure they have the information, skills and tools necessary to do the best possible job for our clients. Notice that I didn’t say training—I said education. Our mortgage originators should be capable of being an advisor to our clients in the true sense of the word.

Leadership

I have saved the best for last. The team will follow our example in all things they do. If we are lax about educating ourselves, they will be too. If we are a little loose with following rules, they will be too. If the team knows they can trust us, we’ll be able to trust them, and we’ll have a strong foundation for a highly desirable Take staff to industry company culture. conferences People want to work for a winning They should pay part of their own company, but they also want to work way, but we need to pay for part of it, too. What is important to us becomes important to them. Produce educational events inhouse, too, because that drives home the message that education and professionalism are important to us. Bring in experts, particularly on topics like loan programs, mortgage insurance, title and escrow, and credit. Many experts in these fields will provide education for free. However small our office is, it is not too small to do this.

for a person whom they admire, respect, like and trust. If we want to attract and retain high-integrity, productive team members, it is our job to be the kind of person that that kind of person wants to work with.

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One of my old bosses had a sign on her wall that said, “Inspect What You Expect.” Her message was not subtle—she intended to watch over everything that everyone did to make sure they did it her way. Frankly, she was reasonably successful on a small scale. But she also had a lot of turnover. The problem with her management style was threefold: First, no one did anything more than what was expected and clearly communicated. Secondly, inspecting everything took an awful lot of her time. And finally, she chased away exactly the kind of employee she claimed she wanted—professional, ethical and smart. Her style of management worked well for a very small team, but limited the team’s growth potential. If we want to build a large, creative and productive team, we must retain key employees over time. The way to do this is to create a culture where integrity, competence and work ethics are simply part of the company DNA—it isn’t even questioned. This will attract employees who organically fit into this kind of culture and who want to stay. This isn’t easy, and it doesn’t happen by accident, but it can be created intentionally.

things right all the time. We just don’t notice it, or if we do we don’t mention it. The next time a key employee does something well, even if it is sort of ordinary, notice it, say something about it, and if appropriate, give them a “spot” bonus (making sure it is compliant with compensation rules of course). The key point is that our words of appreciation will usually mean more to the right team member than the bonus anyway, and create loyalty within the team such that will be almost impossible for a competitor to steal the employees we want to keep.


“The days of hustle and bustle are still among us—yet there is a shift of people wanting to have more work-life balance.”

Happy and Healthy Employees By Kerry W. Elam

Do you want happy and healthy employees? Do you want to be a part of a great working environment? How do you foster a culture that embodies happiness and health? The answer is to look at your employees as a whole person … not just as an employee. You must understand that all parts of their being want to be nourished and inspired.

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The days of hustle and bustle are still among us—yet there is a shift of people wanting to have more work-life balance. There is a trend towards more teleworking. Global Workplace Analytics stated in September 2013 that “Self-employed and non-self- What does it mean: employed work at home grew by 29.4 Seeing the whole percent from 2005 to 2012.” person? More firms are offering wellness To look at the whole person, you must look at all aspects of their day. This is a simple concept that can be achieved by reminding your employees to take care of themselves and foster an environment in which you care about We ar each person as an individual. Califor e Premie nia’s The five key aspects of a happy and r Direc healthy day are looking at: t Priva

te Mon Lender ey

Residential n/o/o and investment SFR, condo, PUD (1-4 units) properties • Stated Business Purpose Available • Refinances up to 65% LTV, min loan amount 50K to 5 million • Purchases up to 70% min. loan amount 50K to 5 million • Loan term, 1 year, 3 year, 5 year, interest only or fully amortized available • Programs with no PP available • Rates from 8.50% to 12.00% fixed • Loan costs from 1.50% to 4.00% depending on LTV term and prepayment penalty • We have 2nd position loans available for n/o/o and investment properties up to 55%-60% CLTV

programs and people are striving to take better care from a health perspective. Data on wellness programs is limited; however, it is common sense because if you promote overall health and well-being at the individual level you are going to have happier and healthier employees and see a decrease in absenteeism and sickness and an increase in productivity, and employee morale and loyalty.

Apartments and units (5+ residential units) • Up to 70% on refinance and purchases • Stated but verified rental income • Loan terms: 1 year, 3 year, 5 year, 7 year and 10 year; fixed IO or fully amortized • Rates from 8.00% to 12.00%, depending on LTV, prepayment and term • Programs with no PP available • Loan costs from1.50% to 4.00% depending on LTV, term and prepayment penalty • We have 2nd position loans available for our commercial products up to 60% CLTV

Commercial (industrial, retail, church, mixed-use, gas station, auto related, manufacturing, etc.) • Up to 55% on refinances • Up to 60%-65% on purchases • Term 1 to 5 years • Loan costs from 2.00% to 4.00% depending on LTV, term and prepayment penalty Land loan (max LTV 35%, refinance, 50% purchase) call for details

877-700-3703 Office 866-318-4471 Direct Fax

www.pbfinancialgrp.com • e-mail scenarios to: info@pbfinancialgrp.com PB Financial Group Corp. NMLS #357614/PB Financial Group Corp BRE #01522495

Disclosures: per FDIC Regulations Section 6500 Part 226, Subpart C, 226.24. The amount of each payment that will apply over the term of the loan is based on simple annual interest applied to the unpaid balance. Loans range from 1 day to 60 months, are interest only and include a balloon payment due at term. Finance charges apply. Payments do not include amounts per property taxes or insurance premiums. This is not a commitment to lend. Rates and points are subject to change without notice. NMLS #357614

1. 2. 3. 4. 5.

Breath Movement Nourishment Communication Accountability

Breath We are breathing every second of every day to stay alive—when we lose our breath—we lose our life. Yet, we need reminders to bring awareness to the powerful tool our breath can be for us. Even Google has a program on mindfulness, which starts with focusing on your breath. Chade-Meng Tan was a software engineer at Google and now his title is “Jolly Good Fellow” and he leads a training program based on his book Search Inside Yourself. If Google finds this important, you might also want to explore the benefits. In Yoga, one type of breath is called Ujjayi (pronounced “Eu”-“Jai”). Here, the inhalation and exhalation is done through the nose and the throat is constricted to create an ocean sound or “Darth Vader” breathing. The inhalations and exhalations are done in equal duration. The Ujjayi breath helps bring you back to a place

of calm and peace where the issues or stresses at hand will not seem so large. The list below provides some examples which are super simple to implement, yet hard to remember in the moment. For each scenario, take a few long inhalations and exhalations before you take action. l Maneuvering through a difficult conversation l Responding to a challenging email l Trying to get your point across l Waking up in the morning l During transitions of tasks throughout the day All you need to do is to remember when you have a free moment of quiet is to focus on your breath to bring you into each moment fully. You may even try taking a few breaths before the start of an important meeting to get yourself ready to have a successful and productive meeting. Movement We are not meant to be sitting behind our desk on computers, reading documents, texting and using our iPads all day every day. Each moment needs a counter balance to keep us balanced physically. The theory is that opposites heal. Therefore, for each 10-15 minutes you are typing or reading your body will feel better if you take a moment to stretch your body in an opposite direction. For instance, your hands and arms absorb a lot of stress, which in turn makes your neck and shoulders tense from typing. Take a few minutes to do wrist circles, point and flex your wrists, shake out your arms. For your shoulders and neck, do shoulder circles forward and backwards as well as complete arm circles to help to open up your back and provide some relief. Get up and walk around each hour to give your body a break. Every chance you get, move your body, provide some juice to stay going all day long.


Exxon Mobil has a focus on safety first and they have a program by Microsoft called RSI Guard that makes their employees take a break after a certain amount of keystrokes on the computer. This approach reminds their employees to think about doing something other than being heads down in their work.

l Building strong relationships with boss and peers l Bringing ideas to management l Providing ideas for resolution for any compliant they have l Offering ideas to resolve conflicts with others

Communication We communicate our thoughts, ideas, concerns and issues through our words, tone, posture and gestures. And in our electronic age, so much of that communication is done through e-mail where our tone, posture and gestures are perceived. Encourage face to face communication for difficult conversations or at least pick up the phone. For effective communication to take place, each person needs to be heard. We all have times when we get caught up in “I am right” and blaming others for a problem or our feelings. Yet, we all want to be happy and enjoy our relationships both at work and outside of work. Some tips on effective communication:

You will save time and energy with focusing on the areas to build and grow your team. The water cooler talk and gossip will decrease. Your employees will be uplifting each other—working as a team.

l l l l l l

Take personal accountability Treat others as people Be self-aware Allow time to understand Have compassion Breath

l Managing career progression l Taking ample time off to refresh and rejuvenate

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, e-mail kelam@actualizeconsulting.com or visit www.actualizeconsulting.com.

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Accountability As mentioned above with communication, it is easy to place blame versus taking accountability for your role in situations. Yet having a culture in which you empower others to be in charge of outcomes can be very inspiring for your team. In the book, Leadership and Self-Deception, Getting Out of the Box by The Arbinger Institute, the story portrayed is how their executive team teaches accountability and taking ownership of each and every situation. Some ways to promote accountability among your employees is to take a top down approach. The management team must promote that blaming others is not acceptable by not feeding into the stories of he said/she said. Each employee takes accountability for:

In closing, look for ways to enhance your day each day—take ownership of how you feel—do the things that bring you joy to ensure you balance each day with a little something just for you. The words below can help serve as a reminder.

I use my breath to transition from task to task, I use movement to keep my body fresh and strong, I nourish my body with wholesome foods, I listen to understand and truly communicate with others. I take full accountability of making the most of each day.

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Nourishment There are more allergies than ever in the United States. According to a study released in 2013 by the Centers for Disease Control and Prevention, allergies among children increased approximately 50 percent between 1997 and 2011. Food and Allergy Research and Education reports that every three minutes, a food allergy reaction sends someone to the emergency room—that is more than 200,000 ER visits per year. For nourishment, the most effective way to support your employees is to offer healthy and whole foods during the day and events. In the office, get rid of vending machines with chips and cookies and offer more wholesome options like granola bars, nuts and dried fruits. If you desire, you can offer fresh fruit, herbal teas and coffee free to your employees. The key is to lead by example and provide an environment in which everyone can be successful. The team morale of all being on a healthy track can be very powerful. At Actualize Consulting, after implementing a wellness program and offering healthy food options at meetings, within a few months, one third of their staff lost 30-plus pounds per employee. “I supported the implementation of the wellness program, yet had no idea how popular and motivating it would be to employees,” said Actualize Consulting Partner Matt Seu. Instead of sugar highs and lows— you can help to enable balanced and healthy employees. You can also offer this as part of your wellness program. Have experts come in and talk about nourishment or have a nutritionist available to speak to your employees as needed. Another option that some firms have is to give wellness dollars to each employee to utilize how they see fit. One

employee might use towards a gym membership, while another may use to see a nutritionist and yet another may use for smoking cessation. A healthier person is a happier person and a happier person is a more effective employee.


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WEBSITE

1st Advantage Mortgage....................................................................http://www.1amllc.com 1st Florida Lending ..............................................................http://www.1floridalending.com 1st New England Mortgage ....................................................................http://www.fne.com 1st Security Home Mortgage Corp. ................................................http://www.eloanline.com 1st Signature Lending ..................................................................http://www.1stslteam.com 1st United Funding LLC..........................................................................http://www.1stuf.net 24-7 Mortgage Loans ............................................................http://www.24-7mtgloans.com 360 Mortgage Group LLC ..............................................................https://www.360mtg.com A10 Capital LLC ..........................................................................http://www.a10capital.com Absolute Home Mortgage Corp. ......................................................http://shermanteam.com Absolute Home Mortgage Corp. ............................................http://www.MortgageMarvin.net Access Reverse ..............................................................................http://www.timlinger.com Ace Lending LLC ....................................................................http://www.acelendinglllc.com Acopia Home Loans ..........................................................http://www.acopiahomeloans.com Actualize Consulting ......................................................http://www.actualizeconsulting.com Advantage Mortgage Group Ltd. ....................................http://advantagemortgageloans.com Advante Real Estate ........................................................................http://www.loanlily.com/ Advisors Mortgage Group LLC ..........................................http://www.advisorsmortgage.com AES Lending ..............................................................................http://www.AESLending.com Affiliated Financial Group/Goldwater Bank..........................................http://www.afg-co.com AFR Wholesale ........................................................................http://www.afrwholesale.com Alaska Lending ........................................................................http://www.alaskalending.net All California Mortgage, a division of American Pacific Mortgage......http://www.allcalifornia.com All Western Mortgage ....................................................................http://www.awmnow.com All Western Mortgage-OR Branch ..................................http://www.allwesternmortgage.com AllWays Financial Services ..................................................http://www.allwaysfinancial.com Allwin Capital............................................................................http://www.allwincapital.com Alpine Mortgage Planning/Pinnacle Capital Mortgage ....................http://www.alpinemc.com Altius Mortgage ....................................................................http://www.altiusmortgage.com Amercan Pacific Mortgage ........................................................http://www.apmortgage.com America Select Mortgage Inc. ..........................................................http://ASMPlanning.com American Capital Corp. ..........................................................http://www.marioyeaman.com American Capital Corp. ....................................................................http://accadvantage.com American Capital Home Loans......................................http://www.YourLendingSolution.com American Fidelity Mortgage Services ..................................................http://www.afmsi.com American Financial Network Inc. ..........................................................http://Lowerpmt.com American Financing Corporation........................................http://www.americanfinancing.net American First Financial Services LLC ....................................................http://affsloans.com American Home Free Mortgage ..............................................http://www.americanhfm.com American Home Mortgage Inc. ..................................................................http://loansite.com American Lending Solutions LLC ............................................http://www.alshomeloans.com American Mortgage Resource Inc. ..................................................http://www.visitamr.com American Nationwide Mortgage ....................................http://americannationwide-nmb.com American Portfolio Mortgage Corp. ..................................................http://www.goapmc.com America’s Choice Home Loans ..................................................http://www.ACHLonline.com AMERICU MORTGAGE ............................................................................http://AMERICU.COM Amerifirst Financial ........................................................................http://www.amerifirst.us/ Amerifirst Home Loans LLC ..........................................http://www.amerifirsthomeloans.com AmeriPlus Financial ........................................................http://www.AmeriPlusFinancial.com AmeriPro Funding ..............................................................http://www.ameriprofunding.com Ameripro Funding, Travis Oaks Branch ..............................http://www.ameriprofunding.com Amity Mortgage Corp. ..........................................................http://www.amityhomeloan.com AMK FINANCIAL........................................................................http://www.amkfinancial.com AMS Mortgage Services ..................................................................http://www.amsmtg.com AMX Loans, a Division of Land Home Financial Services ..............http://www.amxloans.com Angel Oak Funding-Wholesale Division ..........................http://www.angeloakwholesale.com

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WEBSITE

Anheuser Busch Employee’s Credit Union ....................................................http://abecu.org AnnieMac Home Mortgage ..................................................www.mortgagebranchnews.com AnnieMac Home Mortgage - Renovation Lending....http://www.anniemacrenovationlending.com AnnieMac Home Mortgage - Tampa ..........................................http://tampa.annie-mac.com Apex Home Loans Inc. ........................................................http://www.apexhomeloans.com A-Plus Mortgage LLC ....................................................................http://www.aplusinri.com Applied Business Software ..............................................http://www.themortgageoffice.com Appraisal Host ........................................................................http://www.appraisalhost.com Approved Funding Corp.....................................................http://www.ApprovedFunding.com Arbor Bank ..............................................................................http://www.arborbanking.com Archway Mortgage LLC ............................................................http://archwaymortgage.com Area Home Lending ..........................................................http://www.areahomelending.com Arizona Wholesale Mortgage Inc. ........................................................http://www.azwm.com Aspen Mortgage Corporation ........................................http://www.aspenmortgagecorp.com Associated Mortgage Corporation ............................................................http://amcmtg.com Atlantis Organization ......................................................http://www.atlantisorganization.com Award Mortgage Group ........................................................http://awardmortgagegroup.com AWM ............................................................................http://www.allwesternmortgage.com/ Back Bay Funding................................................................http://www.backbayfunding.com Banc Home Loans ........................................................http://dgonzales.banchomeloans.com Banc Home Loans, a division of Banc of California ............http://www.banchomeloans.com/ BancOhio Financial ........................................................................http://www.bancohio.com BancorpSouth Mortgage....................................................http://Bancorpsouthmortgage.com Bank of England ................................................................................http://www.boenc.com Bank of Las Vegas, a Division of Talmer West Bank ............http://www.Bankoflasvegas.com Bank of Utah ..........................................................http://bankofutah.applicantpro.com/jobs/ Bankers Preferred ......................................................................http://bankerspreferred.com BankUnited ..........................................................................................http://Bankunited.com Bay Equity ..................................................................https://www.bayequityhomeloans.com Bay Equity Home Loans ............................https://www.bayequityhomeloans.com/tim-carroll Bay Equity Home Loans LLC......................................http://www.homeloansrohnertpark.com Bayshore Capital ................................................................................http://www.bscap.com Bayside Financial-Tustin, CA Branch ................................................http://www.ebayside.net Benchmark Mortgage ..................................................................http://www.johnseville.com Best Rate Capital Inc. ............................................................http://www.bestratecapital.com Blackstone Financial Inc.........................................................http://www.BlackstoneMB.com BlueMantra Branch Recruiters ..................................................http://www.blue-mantra.com Bridgeview Bank Mortgage ............................................................http://www.mybbmc.com Burke & Herbert Bank ........................................................http://burkeandherbertbank.com/ C2 Financial Corporation ......................................................http://www.c2financialcorp.com Caliber Home Loans..........................................................http://www.caliberhomeloans.com California Mortgage Associates ........................................................http://www.calmort.com Cambria Mortgage ............................................................http://www.cambriamortgage.com Cambridge Mortgage Inc. ........................................http://www.cambridgemortgageinc.com Capital Mortgage Corporation ............................................http://www.capital-mortgage.com Capital Mortgage Services ........................................................http://www.mycmsloans.com Capital New York Home Advantage LLC ..............................................http://capnyhome.com CAPITALPlus Mortgage ....................................................................http://www.selectrd.com Cardan Mortgage Inc ..........................................................http://www.cardanmortgage.com Cardinal Financial Company................................................http://www.cardinalfinancial.com Cardinal Mortgage Corp.......................................................http://www.cardinalconnect.com Carolina Home Mortgage ..........................................http://www.carolinahomemortgage.com Carrington Mortgage ............................................http://www.carringtonhc.com/default.aspx Carrington Mortgage Services....................................http://www.CarringtonHomeLoans.com Castle & Cooke Mortgage LLC-San Antonio ............http://www.castlecookemortgage.com/find_location/branch/sanantonio  Castle & Cooke Mortgage LLC ..............http://www.castlecookemortgage.com/find_location/branch/sandiego


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Envoy Mortgage ..................................................................http://www.envoymortgage.com Envoy Mortgage Ltd. ..............................................................http://clarksvillemortgage.com Equitus Mortgage ..............................................................http://www.equitusmortgage.com Equity Loans LLC ................................................................................http://equityloans.com Equity Mortgage Bankers ..............................................................http://www.equitymb.com Equity Resources Inc. ....................................................................http://www.callequity.com Equity Smart Loans Inc. ....................................................http://www.Equitysmartloans.com Essential Mortgage Company ..................................................http://www.essentialmtg.com Essex Mortgage ..................................................................http://www.essexwholesale.com Essex Mortgage-Retail Loan Officers ............................................http://essexmortgage.com Essex Residential Mortgage ..............................................................http://www.erezllc.com EverBank ..........................................................................http://www.everbank.com/lending Excel Financial Group LLC ................................................................http://www.excelfg.com Exceptional Mortgage Solutions ....................................http://www.xceptionalmortgage.com EXIT Mortgage LLC ..........................................................................http://www.exitmtg.com Express Capital Mortgage Inc...........................................http://www.expresscapitalmtg.com Fairway Asset Corporation-FF Branch Eaton......................................http://www.facmtg.com Fairway Independent Mortgage......................................................http://www.ripsartain.com FAIRWAY Independent Mortgage Corp. ........................................http://www.FairwayPA.com Fast Direct Lending ............................................................http://www.fastdirectlending.com Fast Track Funding Corp. ..........................................................http://www.fasttrackloan.net Fidelity Funding Mortgage Corp. ............................http://www.FidelityFundingMortgage.com Fifth Third Bank Mortgage ..........................................................http://www.53.com/careers First Alliance Home Mortgage ......................................................http://www.fahmloans.com First Allied Financial Services ............................http://www.FirstAlliedFinancialServices.com First Bank & Trust Mortgage ....................................http://fbtonline.com/personal/mortgage/ First California Mortgage ....................................................................http://www.firstcal.net First Capital Group ............................................................................http://www.first-cg.com First Choice Loan Services Inc. ........................................................http://www.fcb123.com First Community Mortgage ........................................................http://www.fcmpartners.com First Community Mortgage - Phoenix ............................http://www.1stnb.com/mortgage/en/ First Equity Home Loans ......................................................http://www.firstequityhome.com First Hawaiian Mortgage ............................................................http://magicmangeorge.com First Hope Bank..............................................................................http://www.firsthope.com First Integrity Mortgage Services Inc. ........................................http://www.firstintegrity.com First Internet Bank ..............................................................................http://www.firstib.com First Liberty Financial Mortgage ....................................................http://www.firstliberty.net First Meridian Mortgage - Los Angeles Branch ..............................................http://fmm.com First Mortgage Corporation..................................................http://www.firstmortgageSA.com First Mortgage Corporation - Victorville Main ..........................http://www.firstmortgage.com First New England Mortgage ..................................................................http://www.fne.com First Ohio Home Finance Inc. ..................................................http://www.firstohiohome.com First Option Lending - Denver, CO ..........https://www.firstoptiononline.com/branch/colorado/ First Pacific Mortgage ........................................................................http://www.FPM1.com First Place Bank ....................................................................http://www.firstplacebank.com First Place Mortgage LLC ..........................................................http://firstplacemortgage.net First Priority Financial ........................................................................http://www.joinfpf.com First Rate Funding Corp. ........................................................http://www.firstratefunding.net First Rate Mortgage..................................................................http://www.teamfirstrate.com FirstKey Mortgage LLC ......................................................http://www.firstkeymortgage.com Firstrust Bank ..................................................................................http://www.firstrust.com Five Star Mortgage ........................................http://www.fivestarmortgagelv.com/home.html Flagstar Bank ..................................................................................http://www.Flagstar.com Fontis Group ........................................................................................http://fontisgroup.com Fort Funding Corp ......................................................................http://www.fortfunding.com Four Star Funding Inc. ..................................................................http://fourstarfunding.com

NationalMortgageProfessional.com

Castle & Cooke Mortgage LLC (Newport Beach, CA)..........http://www.castlecookemortgage.com/find_location/branch/newportbeach Catalyst Lending ..................................................................http://www.catalystlending.com CBC National Bank..............................................................http://www.cbcnationalbank.com cbLoans.com ..................................................................................http://www.cbLoans.com Centerbrook Mortgage Company ........................................http://Centerbrookmortgage.com Centex Capital Corp. ..............................................................http://www.CentexCapital.com Centier Bank - Carmel, IN..................................................................http://www.centier.com Central Capital Lending ........................................................http://centralcapitallending.com Central Mortgage Services Inc. of Louisiana ......................http://www.centralmortgage.com Century Oak Financial Group................................................................http://centuryoak.com Charis Mortgage Corporation ..............................................http://www.charismortgage.com Charter One Mortgage ........................................................................http://CharterOne.com Cherry Creek Mortgage Company Inc. ..........................................http://www.how2own.com Christensen Financial Inc ..........................................................http://www.cfimortgage.com Churchill Mortgage ....................................................................http://www.joinchurchill.com Citizens Bank NH/VT/ME ..............................................http://claudia.carr@citizensbank.com Citizens Financial Group............................................................http://www.citizensbank.com City First Mortgage Services ..................................................http://www.city1stbayarea.com Class Appraisal ......................................................................http://www.classappraisal.com Cliffco Mortgage Banker ......................................................http://www.cliffcomortgage.com CMG Financial ....................................................................................http://www.cmgfi.com Code Violation Services Inc. ................................................................http://www.cvsinc.net Cole Taylor Mortgage ....................................http://www.coletaylormortgage.com/mapleglen Cole Taylor Mortgage Central Florida ............................http://coletaylormortgage.com/jrivera Colonial American Bank ............................................http://www.colonialamericanbank.com Colorado Mortgage Holding......................................................................http://cmhloan.com Commonwealth Bank & Trust ....................................................................http://cbandt.com Community & Southern Bank ..http://www.mycsbonline.com/about-career-opportunities.htm Concept Mortgage ..........................................................http://www.conceptmortgagejs.com Construction Management Ind. LLC ................................http://www.cmillcmanagement.com Continental Home Loans Inc.......................................http://www.continentalhomeloans.com Coverdale Ventures Inc. ................................................................http://www.amcrealty.com CR Funding..............................................................http://commercialresidentialfunding.com Credence Funding Corporation ..........................................http://www.credencefunding.com CrossCountry Mortgage........................................................http://WWW.CrossCountryIL.com CrossCountry Mortgage Inc. ..........................................................http://ccmnationwide.com Custom Financial Mortgage....................................................................http://www.1cfm.net Del Sur Mortgage ................................................................http://www.delsurmortgage.com Desert Springs Mortgage & Financial Services LLC ....http://www.desertspringsfinancial.com DHA Financial Inc. ..........................................................................https://www.dhaloan.com Digital Risk....................................................................................http://www.digitalrisk.com Directors Financial Group ............................................................http://www.directorsfg.com Disney Financial Corp. ..................................................................http://DisneyFinancial.com Diversified Financial Services Group Inc. ................................http://www.divfinservices.com DLS Servicing Consultants LLC ................................................http://www.dls-servicing.com DocMagic Inc. ..............................................................................http://www.docmagic.com Domico Investments Business Brokers....................................http://domicoinvestments.com Downs Financial ............................................................................http://www.downsinc.com Draper and Kramer ............................................................................http://www.1amllc.com Drew Mortgage Associates Inc. ............................................http://www.DrewMortgage.com Eagle Creek Mortgage-Gaithersburg, MD ........................http://www.eaglecrkmortgage.com Eagle Platinum Mortgage ........................................http://www.EaglePlatinumMortgage.com Elite Mortgage ..............................................................http://www.SacHomesAndLoans.com Emery Federal Credit Union ......................................http://www.emeryfed.com/Default.aspx ENG Lending ..............................................................................http://www.engindiana.com Envisions Inc. ......................................................................http://www.sierrapacificnm.com

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Franklin First Financial ................................................http://www.FranklinFirstFinancial.com Freedom Mortgage Corporation ........................................http://www.freedommortgage.com Fremont Bank..........................................................................http://www.FremontBank.com Frost Mortgage Lending Group ................................................http://AustinsBestLender.com FSF-SimplifyLending.com ....................................................http://www.simplifylending.com Funding Unlimited Group LLC ....................................................http://www.fhaspecialist.net Futura Financial Inc. ..............................................................http://www.futurafinancial.com Gateway Funding ................................................................http://www.joingatewaynow.com Gateway Funding DMS LP ..................................................http://www.gatewayfunding.com Gateway Mortgage Group LLC ..................................................http://www.gatewayloan.com Gencor Mortgage Inc. ..................................................................http://gencormortgage.com Geneva Financial LLC......................................................................http://www.genevafi.com GenoaBank ................................................................................http://www.genoabank.com Global Lenders Inc. ............................................................http://www.globallendersinc.com Gold Medal Mortgage Inc. ........................................http://www.goldmedalmortgageinc.com Gold Star Mortgage Financial Group ..................................http://www.goldstarfinancial.com/ Good Friend Mortgage Inc. ..............................................http://www.goodfriendmortgage.biz goodmortgage.com ..........................http://www.goodmortgage.com/Jobs/Loan_Officer.html Gotmortgagewholesale.com ......................................http://www.gotmortgagewholesale.com Gradient Home Mortgage LLC ....http://www.gradientfinancialgroup.com/gradient-home-mortgage/home Graystone Mortgage ......................................................http://www.graystonemortgage.com Great Northern Mortgage Corporation ................................................http://GetLowRate.com GSB Mortgage Inc. ..........................................................................http://www.gsbmtg.com GSF Mortgage ............................http://info.gogsf.com/do-you-have-a-plan-for-success-nmp Guarantee Mortgage ......................................................http://www.guaranteemortgage.com Guaranteed Rate ..................................................................http://www.guaranteedrate.com Guardian Mortgage Company Inc...........................http://www.guardianmortgageonline.com/ Guardian Savings Bank ........................................................http://Guardiansavingsbank.com Guild Mortgage Company ................................................https://guildmortgagecompany.com GVC Mortgage Inc. ............................................................................http://gvcmortgage.com Hamilton Group Funding ..........................................................http://bestlenderinraleigh.com Hamilton Group Funding-NC ................................http://www.mortgagelendersinraleigh.com Hamilton Group Funding LLC ..........................................................http://www.hgfloans.com Hawaii Mortgage Solutions ....................................http://www.hawaiimortgagesolutions.com Heritage Home Loans ..............................................................http://www.hhlnorthwest.com High Desert Home Lending LLC ......................................................http://highdesertnm.com Hilco Mortgage Group ............................................................http://www.hilcomortgage.com Home Capital Network ..................................................http://www.homecapitalnetwork.com Home Financial Group LLC ..............................................http://www.homefinancialgroup.net Home Financing Center ..............................................http://www.homefinancingcenter.com Home Loan Investment Bank ........................................................http://HomeLoanBank.com HomeBridge Wholesale..............................................http://www.HomeBridgeWholesale.com Homeowners Financial Group USA LLC ................................http://www.homeownersfg.com Homerica Mortgage Corporation......................................http://www.homericamortgage.com Homesale Mortgage LLC ................................................http://www.homesalemortgage.com HomeStreet Bank ......................................................................http://www.homestreet.com Hometown Equity Mortgage................................www.http://hometownequitymortgage.com/ Hometown Lenders ..........................................................http://www.hometownbranch.com HomeTrust Mortgage Corporation ..................................http://www.hometrustmortgage.com Hope Tree Home Loans ..........................................................http://hopetreehomeloans.com Hornet Holdings LLC..................................................http://www.oxfordcapitalmortgage.com Hudson United Mortgage ........................................................http://www.randmortgage.com Huron Valley Financial ..................................................http://www.huronvalleyfinancial.com Ideal Lending Solutions Inc. ........................................................http://www.ideallending.net Inbanet Commercial & Residential Lending ......................................http://www.inbanet.com Indus Loans LLC..........................................................................http://www.indusloans.com

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WEBSITE

Infinity Lending Solutions ..................................................http://Infinitylendingsolutions.com Inlanta Mortgage ..................................................................http://www.inlantapartners.com Integrity First Financial Group Inc. ..........................................http://www.iffghomeloans.com Integrity Home Loan ..........................................................................http://inthomeloan.com Integrity Home Mortgage Corp.-Columbia MD Branch ..................http://www.ihmcloans.com Interbank Mortgage Company ........................................http://www.interbankwholesale.com Intercounty Mortgage Network Corp.............................http://www.intercountymortgage.com International City Mortgage Inc. ..............................................http://www.icitymortgage.com Interstate Home Loan Center Inc...................................http://www.interstatehomeloans.com Investment Bankers Network............................................................http://www.inbanet.com Investors Home Mortgage ..................................................http://www.myinvestorsbank.com iServe Residential Lending ............................................................http://www.joiniserve.com KDWallStreet Mortgage Advisors LLC ................................................http://KDWallStreet.com Key Source Mortgage a division of Mountain West Financial............http://www.your-keysource.com Keystone Funding ........................................................................http://keystonefunding.com Land Home Financial....................................................................http://www.lhfinancial.com Land Home Financial Services Inc. ........................................................http://www.lhfs.com Landover Mortgage ..........................................................http://www.landovermortgage.com Langdon Mortgage Company Inc.......................................http://www.langdonmortgage.com LB Mortgage ......................................................................................http://LBMortgage.com LeaderOne Financial ..........................................................http://l1mortgage.com/karlleblanc Lenders Aid Nationwide ..............................................................http://www.LendersAid.com LendSmart Mortgage................................................................http://www.branchsmart.com Lenox Home Loans/WesLend Financial ..............................http://www.lenoxhomeloans.com Liberty Bank and Trust Company ..................................................http://www.libertybank.net Liberty Home Mortgages LLC ..........................................................http://www.myLHM.com Loan Officer School ..................................................................http://LoanOfficerSchool.com Loan Simple Rio Rancho Star Center ....................................................http://loansimple.com loanDepot ....................................................................................http://www.loandepot.com/ LoanSimple Inc. ..................................................................http://Www.JoinLoanSimple.com Louisiana Mortgage Associates ....................................................http://www.swlahome.com LSI Mortgage-Plus ................................................................http://www.Mortgage-Plus.com M&M Mortgage LLC ..........................................................http://www.themmmortgage.com Mac5 Mortgage ..........................................................http://www.myhomeloancolorado.com Mann Mortgage..................................................................................http://mannhawaii.com Mann Mortgage LLC ........................................................http://www.mannmortgagellc.com/ Mann Mortgage LLC ............................................................http://salem.mannmortgage.com Marine Mortgage Services ......................................................................http://Marinecu.com Market Consulting Mortgage..............................................................http://www.macmtg.biz Marquette Bank ..................................................................http://www.emarquettebank.com Mason-McDuffie Mortgage Corp. ..........................................................http://mmcdcorp.com Maverick Funding Corp. ....................................................http://www.maverickfunding.com MBN Corp., a Mortgage Bankers & Brokers Network......http://mortgagebrokersnetwork.com McLean Mortgage Corporation ....................................http://www.whymcleanmortgage.com MCS Mortgage Bankers ..........................................................http://www.mcsmortgage.com Meridian Bank ....................................................................http://www.meridianbanker.com Meridian Mortgage Solutions ........................................http://meridianmortgagesolutions.net Metropolitan Mortgage Group Inc. ......................................................https://metromgi.com/ Michigan Mutual ............................................................................http://www.mimutal.com Michigan Mutual Inc. ......................................http://jhumberger.mimutual.com/Default.aspx Mid America Mortgage................................................http://www.midamericamortgage.com Midwest Equity Group ................................................................................http://MWEG.com MiLend Inc. ......................................................................................http://www.milend.com Millennium Mortgage Capital........................................................http://www.mmortgage.net Miller Mortgage LLC ........................................................http://www.millerhomelending.com Minnesota Bank and Trust ......................................http://www.minnesotabankandtrust.com


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Open Mortgage ........................................................................http://join.openmortgage.com Open Mortgage LLC Huntsville, AL 35802 Huntsville Branch ..http://jimmarion.openmtg.com Opes Advisors Inc. ......................................................................http://www.opesmarin.com Orion Financial Group Inc. ................................................................http://www.orionfgi.com Orion Home Loans ..................................https://www.orionloans.com/work-with-orion/index Oxford Capital............................................................http://www.oxfordcapitalmortgage.com Pacor Mortgage Corp. ..........................................................http://www.pacormortgage.com Paramount Loan Services ................................................................http://paramountls.com Paramount Residential Mortgage Group Inc. ..........................................http://www.prmg.net Park Avenue Capital Inc. ..................................................http://www.ParkAvenueCapital.net Park Bridge Financial......................................................http://www.parkbridgefinancial.com Patriot Home Mortgage ........................................................http://patriothomemortgage.com Patriot One Mortgage Bankers LLC ..................................................http://patriotonemtg.com Peoples Bank & Trust Co. ..................................................http://www.PeoplesBankUSA.com Peoples Home Equity Inc. ..............................................http://www.peopleshomeequity.com Peoples Home Mortgage......................................................http://www.bankingunusual.com Peoples Mortgage ....................................................http://www.peoplesmortgageloans.com/ People’s United Bank ......................................................................http://www.peoples.com Perl Mortgage..........................................................................http://www.perlmortgage.com Personalized Mortgage Express ....................................................http://www.pmeloans.com PHH ................................................................................................http://www.phhjobs.com Pinnacle Capital Mortgage ......................................................http://www.pcmcorporate.com Pinnacle Lending Group Inc. ................................................................http://www.plgnv.com Pinnacle Mortgage Group................................................http://www.pinnacle-mortgage.com Plaza Home Mortgage Inc.............................................http://www.plazahomemortgage.com PMAC Lending Services Inc. ................................................................http://www.pmac.com Premier Nationwide Lending ........................................................http://www.pnlending.com/ Primary Residential Mortgage ....................................http://www.primaryresidentialmtg.com Primary Residential Mortgage-Sugar House..................http://www.primaryresidentialus.com Primary Residential Mortgage Hawaii ................................................http://hawaiilender.com Primary Residential Mortgage Inc. ..............................................http://www.primaryME.com Primary Residential Mortgage Inc Delaware Branch ................http://www.DelawareMortgageLoans.net Primary Residential Mortgage Inc. Englewood CO 80124 ....................http://www.bestcoloradomortgages.com Prime National Credit Repair ............................................................http://primenational.com Prime Source ..............................................................................http://www.psmwwyh.com/ PrimeLending-Blacksburg, VA................................................http://www.DennisDuncan.com Priority Financial Network ..........................................................http://www.lowest-rates.net Priority Lending Corp.......................................................http://www.prioritylendingcorp.com Priority Lending Mortgage Corporation ..................................http://www.prioritylenders.com PRMG ..................................................................................................http://www.PRMG.net Prodigy Home Loans........................................................http://www.prodigyhomeloans.com Prosper Mortgage Funding ........................................................http://www.prospermtg.com Provident Lending Group......................................................http://www.PLGHomeLoans.com Pulaski Bank Home Lending ......................................................http://www.pulaskibank.com PYC Financial ............................................................................http://www.pycfinancial.com Queen City Funding Inc. ..........................................................http://www.myqcfunding.com R-B Financial/Mortgages..............................................................http://www.rbfinancial.com Real Estate Loan 4 U............................................................................http://www.rel4u.com Real Estate Mortgage Network ............................................................http://www.remn.com Realty World ..................................................................http://www.rwamericandream.comn ReCasa Financial Group ........................................................http://www.recasafinancial.com Redwood Mortgage Services ........................................http://www.Redwood-Mortgage.com Residential Finance..........................................................................http://myrfccareers.com/ Residential Home Funding......................................................................http://rhfunding.com Residential Home Mortgage Corporation ..............................................http://www.rhmc.com Residential Mortgage Network Inc. ........................................http://www.mortgageforall.com

NationalMortgageProfessional.com

MLD Mortgage Inc. ........................................................................http://MLDbranching.com MLS Mortgage Group ............................................................http://MLSMortgageGroup.com MN Capital Inc.............................................................................http://www.mn-capital.com Mortgage 1 Inc. ..............................................................................http://mortgage1inc.com Mortgage Advisory Group ......................................................................http://magloans.com Mortgage Associates Inc. ..........................................................http://NJmortgagestore.com Mortgage Bankers of Florida ................................................................http://www.mbof.com Mortgage Capital-Wilmington, NC ..............................................http://www.bestrateNC.com Mortgage Financial ............................................................................http://www.mfsinc.com Mortgage Mart ........................................................................http://www.MortgageMart.net Mortgage Master Inc. ........................................................http://www.mortgagemaster.com Mortgage Master Service Corporation ............................http://www.mortgagemasterwa.com Mortgage Masters Group..........................................http://www.mortgagemastersgroup.com Mortgage Network Inc. ......................................................http://www.mortgagenetwork.net Mortgage Network Inc. ..........................................http://www.mortgagenetworkcareers.com Mortgage Services III ................................................................http://mortgagesevices3.com Mortgage Solutions Financial ..................................http://www.msfhome.com/employment/ Mortgage Solutions Financial ......................................http://www.msofco.com/employment/ Mortgage Team 1 Inc. ..................................................................http://mortgageteam1.com Mortgage World Bankers............................................................http://www.mwbankers.com Mortgages Unlimited Inc. ......................................................http://www.muihomeloans.com Mountain West Financial AV ..............................................................http://www.mwfav.com Mountain West Financial Inc...............................................http://www.redlands.mwfinc.com Movement Mortgage LLC ..............................................http://www.movementmortgage.com Mulberry St. Mortgage ..........................................................http://mulberrystmortgage.com Multi State Mortgage ....................................................http://www.multistatemortgage.com MyAMC ............................................................................................http://www.myamc.com NA Nationwide Mortgage ..................................................http://nanationwidemortgage.com N1FS ..............................................................................................................http://n1fs.com National Credit Fixers......................................................http://www.nationalcreditfixers.com National Mortgage Insurance Company ................................................http://nationalmi.com National Mortgage Staffing ....................................http://www.nationalmortgagestaffing.com National One Financial Services......................................................................http://n1fs.com National Residential Mortgage ..............https://www.htlf.com/html/natresdirect-careers.html NationsChoice Mortgage..........................................http://www.NationsChoiceMortgage.com Nationwide Equities Corporation ....................................................http://www.nwecorp.com Neighborhood Mortgage-Bellingham, WA branch ......http://www.neighborhoodmortgage.net Neighbor’s Financial Corporation ....................................http://www.NeighborsFinancial.com Network Funding LP ........................................................................http://www.nflpmtg.com New American Funding................................................http://www.newamericanfunding.com New England Alliance Mortgage, a division of the Bank of England ......http://bankofengland-ct.com New Penn Financial LLC ..................................................http://www.newpennfinancial.com New View Mortgage Corp. ........................................http://www.newviewmortgagecorp.com NewDay USA ..............................................................................http://www.newdayusa.com NewFED Mortgage Corp. ..................................................................http://www.newfed.com NFM Inc. ....................................................................................http://www.nfmlending.com Norcom Mortgage ..............................................................http://www.NorcomPartners.com North Dallas Mortgage ................................................http://www.northdallasmortgage.com Northeastern Financial LLC................................................http://www.neasternfinancial.com Northern Mortgage Services Inc. ..............................................http://www.northernmtg.com NorthPoint Mortgage ................................................................http://www.trynorthpoint.com NorthStar Funding ................................................................http://www.nshomefunding.com NXTLoan|First American Mortgage Trust ..........................................http://www.nxtloan.com Oklahoma Premier Mortgage..............................http://www.oklahomapremiermortgage.com On Q Financial Inc. ....................................................................http://www.onqfinancial.com OneTrust Home Loans ....................................................http://www.onetrusthomeloans.com

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ResMac Inc. ....................................................................................http://www.resmac.com Revere Capital..........................................................................http://www.reverecapital.com Reverse Mortgage Direct Inc.......................................http://www.reversemortgagedirect.net ReverseCareers....................................................................http://www.ReverseCareers.com Right House Capital ..........................................................http://www.righthousecapital.com Rivas Mortgage............................................................http://www.rivasrealty-mortgage.com Rpm Mortgage Inc. ........................................................................http://www.rpm-mtg.com Satori Mortgage ....................................................................http://www.satorimortgage.com SD Capital Funding ............................................http://www.livingstonmortgagelenders.com/ Seacoast Mortgage Corporation ................................................http://seacoastmortgage.com Sebonic Financial ......................................................................................http://sebonic.com Security Mortgage Corp. ..........................................................http://securitymortgage1.com Security National Mortgage Company ........................http://www.snmc.com/GarityHathaway Security One Lending ..............................................................................http://www.s1l.com Select Choice Mortgage ..................................................http://www.underconstruction.com Semper Home Loans ......................................................http://www.semperhomeloans.com Shelter Mortgage ................................................................http://www.sheltermortgage.com Shore Mortgage ........................................................................http://www.usfscareers.com Shore Mortgage ....................................................................http://www.shoremortgage.com Sierra Pacific Mortgage........................................................http://Sierrapacificmortgage.info Silvercreek Finance..........................................................http://www.silvercreekfinance.com Simplified Inc. ............................................................................http://www.simplifiedinc.net Simsbury Bank ......................................................................http://www.simsburybank.com Sindeo ..............................................................................................http://www.Sindeo.com Sky Mortgage LLC-Florida Branch ......................................http://www.myskymortgage.com Somerset Lending Corp. ....................................................http://www.somersetlending.com Source One Mortgage....................................................http://www.sourceonemortgage.com South Pacific Financial Inc ................................................................http://www.spfcnet.com Southeast Mortgage of Georgia Inc.................................http://www.southeastmortgage.com Southern Funding Alliance ..............................................http://Southernfundingalliance.com Southern Trust Mortgage ........................................................http://www.southerntrust.com Specialized Loan Servicing ........................................................................http://www.sls.net Spectra Home Loans........................................................http://www.spectrahomeloans.com Spectrum Mortgage Company Inc ................................http://loansbyspectrummortgage.com Stearns Lending Inc. ........................................................................http://www.stearns.com Styner Enterprises Inc. ............................................http://www.eagleplatinummortgage.com Suburban Mortgage Inc. ..................................................................http://www.submort.com Summit Mortgage Corporation ............................................http://joinsummitmortgage.com/ Summit South Mortgage ..........................................http://www.summitsouthmortgage.com SunTrust Mortgage, Raleigh Brier Creek Office..................http://www.suntrust.com/keith.hill Sunwest Mortgage Company Inc. ....................http://sunwestdirect.com/donna-sylvia-iwane Supreme Lending ................................................................http://www.supremebranch.com Susquehanna Bank ..................................................................http://www.susquehanna.net Swan Financial ............................................................................http://www.swanhelp.com TagQuest Inc. ................................................................................http://www.tagquest.com Tandem Mortgage Inc ................................................................http://tandemmortgage.com Team Mortgage Company ..........................................................http://www.RUqualified.com Terra Lending Group..................................................................http://www.terralending.com The Home Lending Group LLC ....................................http://www.thehomelendinggroup.com The Lending Partners ......................................................http://www.thelendingpartners.info The Modern Mortgage Group ....................................................http://www.harp2point0.com The Money Store ..................................................................http://www.themoneystore.com The Mortgage Firm ............................................................http://www.themortgagefirm.com The Mortgage House ............................................................http://www.mortgagehouse.org The Mortgage Link Inc.................................................................http://www.themtglink.com The Mortgage Specialists ........................................http://www.themortgagespecialists.com

COMPANY NAME

WEBSITE

The National Bank ..............................................................................http://www.thenb.com The Reverse Mortgage Group, a branch of American Pacific Mortgage........http://YourReverse.com The Shintani Group Inc.....................................................................http://shintanigroup.com TMC Equities Inc. ......................................................................http://www.tmcequities.com Total Mortgage Services LLC ................................................http://www.TotalMortgage.com TradeMark Mortgage ..................................................http://www.trademark-mortgage.com Traditional Home Mortgage Inc. ..............................................................http://thmloans.com Trinity Mutual ....................................................................................http://trinitymutual.com TriState Mortgage Corporation ....................................http://www.tristatemortgagecorp.com Tropical Financial CU ..................................................................http://www.tropicalfcu.com Turboloans ..................................................................................http://www.turboloans.com U.S. Loans Mortgage Inc ..........................................................................http://usloans.com Union Savings ..................................................................http://www.markcooperloans.com United Equities Mortgage Broker Inc..................................http://www.unitedequitiesmb.com United Fidelity Funding Corp. ................................................http://www.UFFWholesale.com United Lending Partners ............................................http://www.unitedlendingpartners.com United Management Partners ....................................................http://www.umpresmac.com United Mortgage Corporation ..............................................http://www.unitedmortgage.com United Mortgage Corporation of America ..................................http://www.united4loans.com United Mortgage Plus ....................................................http://www.unitedmortgageplus.com United Wholesale Mortgage..................................................................http://www.uwm.com Universal Lending Corp. ..........................................................................http://www.ulc.com Universal Mortgage ........................................................http://www.universalmortgage.com Universal Mortgage & Finance Inc. ......................................................http://www.umafi.com US Mortgage Corp. ..................................................................http://www.usmortgage.com/ ValuAmerica ..............................................................................http://www.valuamerica.com Value Funding Inc. ....................................................................http://www.valuefunding.net ValuEscrow Inc. ..........................................................................http://www.valuescrow.com ValuLink ......................................................................................http://www.myvalulink.com Van Dyk Mortgage Corp. ..............................................................http://hiltonheadloans.com VanDyk Mortgage ..................................................................http://www.vandykatlanta.com Vanguard Funding ........................................................................http://vanguardfunding.net Village Mortgage-All Branches ....................................................http://www.villagemtg.com Vinings Mortgage ..............................................................http://www.viningsmortgage.com Virginia Credit Union ..................................................................http://www.vacu.org/careers Vista Financial Resources LLC ..............................................................http://www.vfrlv.com Washington First Mortgage Loan Corp.........................................................http://wfmtg.com Waterstone Mortgage Corporation ....................http://www.waterstonemortgagecareers.com WCS Funding Group ............................................................http://www.happymortgage.com Wealthcorp Capital Mortgage ............................http://www.wealthcorpcapitalmortgage.com Weatherstone Mortgage Corp. ..................................http://www.weatherstonemortgage.com Webster Bank ..........................................................................http://www.websterbank.com Wells Fargo ............https://www.wfhm.com/loans/sandiegocentral-fashionvalley/index.page Wells Fargo Home Mortgage..............................................http://www.wfhm.com/todd-white West Bancorp ............................................................................http://www.westbancorp.net West Town Savings Bank ..................................................................http://westtownsb.com Western Bancorp ................................................................http://www.westernbancorp.com WestStar Mortgage Inc..............................................................http://weststarmortgage.com Weststar Pacific Mortgage..............................................................http://www.westloan.com Wholesale Capital Corporation ........................................................http://www.wccmtg.com Willamette Valley Bank-Home Loan Division ................http://www.willamettevalleybank.com Willow Bend Mortgage ................................................http://www.willowbendmortgage.com Wintrust Mortgage-Hubbard St. Branch ..........................http://www.wintrustmortgage.com/ WJ Bradley ..............................................................................http://mywjb.com/david-lippe/ Xstream Home Loans Inc. ..............................................http://www.xstreamhomeloans.com Zeus Mortgage ................................................................................http://www.askzeus.com


F E A T U R E D

Company name: AFR Wholesale Web site: www.afrmortgage.com Phone #: (973) 712-5840 E-mail: marketing@afrmortgage.com Company bio: AFR Wholesale, a division of American Financial Resources Inc. is a nationwide wholesale residential mortgage lender based in Parsippany, N.J. We are a Ginnie Mae issuer, Fannie Mae and Freddie Mac Seller/Servicer, FHA Mortgagee, USDA National Lender and VA Automatic Lender. In business since 1997, American Financial Resources Inc. has grown to one of the largest lenders in the nation. Positions available: Mortgage Underwriters specializing in 203(k)-Mortgage Processors –Licensed Mortgage Originators and Wholesale Account Executives. Locations: Corporate and remote opportunities

L I S T I N G S

Company name: Continental Home Loans Inc. Web site: www.continentalhomeloans.com Phone #: (800) 764 7763 E-mail: resumes@chlmtg.com Company bio: Continental Home Loans Inc. is a full-service direct to consumer mortgage banker founded by Michael McHugh in 1984. In fact, Continental Home Loans is the largest mortgage bank on Long Island, as well as the largest privately-held mortgage bank in New York State. We currently hold licenses in 27 states as a HUD approved direct endorsed lender with FHA, VA Automatic Authority, and is a SONYMA participating lender. Continental is also an approved seller/servicer with Freddie Mac, Fannie Mae and Ginnie Mae. While many other mortgage banking platforms are shrinking, consolidating or exiting the industry, Continental Home Loans continues to grow as a mortgage leader in the tri-state area. Positions available: Immediate branch opening opportunities in Florida, New Jersey, Pennsylvania, Connecticut. Loan Officer openings in current branches. Locations: Copiague, Florida, Albany, Massachusetts, New Jersey, Patchogue, Purchase, Queens Village, Staten Island and Valley Stream. 71

Company name: Calyx Software Web site: www.calyxsoftware.com Phone #: (800) 362-2599 E-mail: employment@calyxsoftware.com Company bio: When it comes to choosing a mortgage lending platform, more banks, credit unions, mortgage banks and mortgage brokerages choose Calyx Software than any other system. Calyx has become the clear industry leader by helping our clients maximize profitability through use of high performance, yet amazingly affordable software solutions that streamline and optimize the loan process from within one system of record. Positions available: Calyx Software, leading provider of automated mortgage software, is searching for a Banking Consultant. Minimum five years recent mortgage banking operations experience required combined with thorough understanding of mortgage banking systems and how they interface. Candidate will develop, evaluate courseware for public classes, provide needs assessments, gap analyses for customers and possess intermediate to advanced aptitude in Point and PointCentral software. Business degree preferred or equivalent experience. Position requires travel up to 50 percent and residence in the DFW area. Locations: San Jose, Calif. and Dallas, Texas

Company name: Equity Loans Web site: www.equityloans.com Phone #: (877) 255-3554 E-mail: info@equityloans.com Company bio: Equity Loans is a full-service mortgage banker licensed to provide residential mortgage loans in more than 30 states. Headquartered in Atlanta, Ga., Equity Loans is backed by a staff of experienced professionals and provides a wide range of diverse, flexible mortgage packages for customers with a variety of backgrounds and financial needs without compromising follow through and customer service. Equity Loans’ Third-Party Origination division includes both wholesale and correspondent lending channels. For more information, visit www.equityloans.com. Positions available: Wholesale Account Executives Locations: Positions available in all licensed states. Call for more information.

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Company name: DocMagic Inc. Web site: www.docmagic.com Phone #: (800) 649-1362 E-mail: paulg@docmagic.com Company bio: Founded in 1988 and headquartered in Torrance, Calif., DocMagic Inc. develops software, processes and Web-based systems for the production and delivery of compliant loan document packages. DocMagic guarantees and warrants that all agency forms are up to date and in compliance with GSE requirements. The company’s compliance experts and in-house legal staff constantly monitor legal and regulatory changes at both the federal and state levels to ensure accuracy. Positions available: Be part of the excitement of working with the premier provider of business solutions for mortgage professionals. We are looking for technology-savvy sales executives. Locations: 1800 West 213th Street in Torrance, Calif.

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Company name: Appraisal Nation Web site: www.appraisal-nation.com Phone #: (866) 735-0901 E-mail: al@appraisal-nation.com Company bio: Built on relationships, Appraisal Nation is a proud winner of top 50 Mortgage Service Providers 2013. The number one AMC in the country for wholesale lenders, Appraisal Nation works with over 6,500 brokers daily to make sure their turn time, quality and compliance are all held to the highest standards. Completely customizable to your needs and fully integrated on every major LOS, Appraisal Nation offers solutions that save lenders time and money. Positions available: Quality Control–Licensed appraisers wanted for in-house review position of residential appraisals; Commercial Quality Control–MAI in-house Appraiser wanted for review of commercial assignments; National Account Executive–Sales experience required for this great opportunity to build bridges and connect lenders, banks, credit unions, and service companies to one of the best AMCs in the country Locations: Cary, N.C.


F E A T U R E D

L I S T I N G S

Company name: Fifth Third Bank Web site: www.53.com E-mail: leslie.zerman@53.com Company bio: For over 150 years, Fifth Third has been providing quality financial products and services to its customers. Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The company has $126 billion in assets and operates 18 affiliates with 1,320 full service banking centers. The Wholesale Mortgage business operates in 37 states and is ranked in the top 10 of wholesale lenders, based on origination volume. Positions available: Wholesale Account Executives Locations: 37 U.S. states, excluding AK, CA, NV, AZ, HI, ND, LA, DC, CT, MA, RI, VT & ME. Fifth Third and Fifth Third Bank are registered service marks of Fifth Third Bancorp. Member FDIC. Fifth Third Bank is an Equal Opportunity Employer, M/F/D/V. Equal Housing Lender.

Company name: First Guaranty Mortgage Corporation Web site: www.fgmccorrespondent.com Phone #: (800) 296-2275 Email: cdinquiry@fgmc.com Company bio: Celebrating 25 years; Nationwide Correspondent, Wholesale, Retail Channels + Capital Markets and Warehouse Lending Divisions. FGMC is approved Single Family Issuer for Ginnie Mae; an approved FNMA MBS Issuer; approved by HUD; an FHA approved lending institution; approved for VA and USDA. FGMC utilizes the highest and most current level of cloud-based development for their mortgage technology. FGMC received Ellie Mae’s 2013 Award for Exceptional Customization of Encompass. FGMC recognized by Mortgage Technology Magazine as a “Top Tech-Savvy Lender” for 2011, 2012 and 2013. Positions available: Hiring experienced Wholesale / Correspondent Account Executives. Locations: Nationally

Company name: First Allied Financial Services Web site: www.FirstAlliedFinancialServices.com Phone #: (714) 373-5700 E-mail: notero@firstalliedfinancialservices.com Company bio: Broker operating since 1998 seeking CalBRE licensed loan officers with production. We offer conventional, FHA, VA, reverse, jumbo, second liens, bridge, hard money and commercial. Our lenders give us great pricing and service; which in turn allows our originators to create happy clients. It doesn’t take magic, just hard work, quality employees, and respect for our partners. We have In-House Processing. We offer Loan Structuring Assistance. We give Business Planning Assistance. We have Marketing Templates. And great commission splits! Positions available: Loan Originator Locations: California

Company name: Florida Capital Bank Mortgage (FCBM) Web site: www.flcbmtg.com E-mail: mjohnson@flcb.com Company bio: Florida Capital Bank Mortgage is one of the top 25 wholesale lenders in the country. We are committed to the success of the mortgage broker and small to mid-size correspondents. We specialize in converting brokers to lenders and working closely with our clients to ensure their successful transition to reap all the benefits of lender status. Our centralized platform and experienced dedicated staff is committed to the TPO industry and providing the best customer service in the business. Positions available: Florida Capital Bank Mortgage is looking for experienced Account Executives who can sell traditional Broker, Mini-Correspondent and NonDelegated Correspondent services. AEs looking to work for a broker and lender platform company with an in-house warehouse offering, contact Mark Johnson at mjohnson@flcb.com to discuss available opportunities. Locations: FCBM has AE positions available anywhere in the continental United States.

Company name: First Community Mortgage-Phoenix Web site: www.1stnb.com/mortgage/en/ Phone #: (254) 200-4498 E-mail: cayce.coburn@1stnb.com Company bio: First Community Mortgage, established in 1988 and an affiliate of First National Bank Texas, is now celebrating more than 25 years of superior mortgage service! Due to our continued growth and success, we have a Loan Originator opportunity available at our Phoenix, Ariz. location. Positions available: Loan Originator: This individual will originate high quality loans, develop business relationships with local Real Estate agents and builders, manage a territory of First National Bank Texas and First Convenience Bank locations, train employees on mortgage loan basics, and perform additional tasks as required. Qualifications include a high school diploma or equivalent, and two-plus years of recent mortgage origination experience outside a call center with a solid book of business. Competitive pay and great benefits. Apply online at www.1stnb.com/careers. EOE, M/F/D/V Locations: Phoenix, Ariz.

Company name: Freedom Mortgage Corporation Web site: www.freedommortgage.com Phone #: (800) 220-3333 E-mail: gina.morselli@freedommortgage.com Company bio: Freedom Mortgage Corporation is a national, full-service mortgage banker with retail, wholesale, correspondent and commercial origination and servicing operations. The company is licensed in all 50 states, Washington, D.C. and Puerto Rico. Freedom Mortgage maintains an A rating with the Better Business Bureau (BBB) and is known for using the most advanced technologies and providing world-class service to its clients, borrowers and partners. The company was founded in 1990 and is headquartered in Mount Laurel, N.J. Positions available: Retail Loan Officers, Wholesale Account Executives, Inside Licensed Loan Originators Locations: Positions nationally for Retail Loan Officers and Wholesale Account Executives, Positions in Mt. Laurel, N.J. and Fishers Indiana for Inside Licensed Loan Originators.

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F E A T U R E D

Company name: GSF Mortgage Corporation Web site: info.gogsf.com/do-you-have-a-plan -for-success-com-nmp Phone #: (262) 901-1444 E-mail: cjampedro@gogsf.com Company bio: Founded in 1995, GSF Mortgage is an established and experienced direct mortgage lender. With nearly 20 years of lending experience, GSF professionals originate, process, underwrite and fund all loans. We have direct access to FHA, VA, USDA, FNMA and Jumbo Financing products. GSF Mortgage has provided successful financing solutions to borrowers in all phases of homeownership. We continue to serve the next generation of homeowners with the GoGSF brand focused on flexible and transparent mortgage lending. With many locations, our strengths keep GSF Mortgage “Lending in Your Favor.” Positions available: Regional Branch Manager, Loan Originator Locations: Nationwide

L I S T I N G S

Company name: Michigan Mutual Inc. Web site: www.mimutual.com Phone #: (248) 286-9325 E-mail: tjames@mimutual.com Company bio: Michigan Mutual Inc. is a national full-service Wholesale and Retail Mortgage Lender. Since 1992, we’ve been elevating the mortgage experience by asking our team members and clients to think bigger and expect more. We’re dedicated to providing outstanding customer experiences to every client. And we’re committed to providing exceptional and enriching career pathways to our team members. With MiMutual, you’re more than just a number. Your talents matter. Your values matter. Your passions and your strengths matter. YOU matter. Positions available: National Wholesale Account Executives (Nationwide), Inside Wholesale Account Executives (Southfield), Self -Generating Loan Officers (Michigan, Missouri, Kansas, Texas) Locations: Michigan, Missouri, Kansas, Texas

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Company name: Menlo Park Funding Web site: www.mpfunding.com Phone #: (877) 896-8496, ext. 325 E-mail: mpfrecruiting@mpfunding.com Company bio: Menlo Park Funding is a retail channel of Homebridge Financial Services Inc. We are a national direct mortgage lender that attributes its success to strong relationships with Realtor and builder partnerships. More than 1,200 associates work in three divisions–Consumer Direct, Retail and Wholesale–allowing us to reach referral sources and customers through multiple outlets. Together we put people in homes–a place where memories are created, friendships are cherished and families are connected. Positions available: Mortgage Loan Originators, Area Managers Locations: Nationwide

Company name: Norcom Mortgage Web site: www.norcompartners.com Phone #: (860) 606-2796 E-mail: criste.linkletter@norcom-usa.com Company bio: Norcom has endured over 20 years of success and is built upon a foundation that incorporates industry-leading support, a solid compliant infrastructure and a deep routed connection the communities we do business in. In 2011, Norcom Mortgage was recognized as one of the “Fastest Growing Lenders in New England” and has been voted Top Work Place two years in a row by the Hartford Courant and Fox CT. Norcom has wholesale, retail and correspondent channels. Positions available: Wholesale Account Executives, Loan Originators and Branch Managers Locations: East Coast

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Company name: New Penn Financial LLC Web site: www.newpennfinancial.com Phone #: (484) 594-1043 E-mail: tcloney@newpennfinancial.com Company bio: Established in 2008, amidst a challenging era for the real estate and mortgage industries, New Penn Financial quickly became a major player in the new lending environment. The sea change in the industry worked in our favor, allowing us to rapidly assemble a management team with decades of collective experience. New Penn has forged a national industry presence built on competitive interest rates, exceptional customer service, and healthy lending practices. Positions available: Wholesale Account Executives, Mortgage Loan Originators, Branch Managers, Sales Managers Locations: AZ, CA, GA, FL, MI, MN, NY, OR, TX & VA

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Company name: Maverick Funding Corporation Web site: www.maverickfunding.com Phone #: (973) 585-6100 x 107 E-mail: hr@maverickfunding.com Company bio: In a challenging market, Maverick Funding Corporation has grown steadily over the past six years having obtained FHA, Fannie Mae and Ginnie Mae approval, and has increased staff from 20 in 2007 to more than 250 employees today. This strong growth is the result of an experienced leadership team, expert operations staff and customer service oriented loan originators working together to meet the needs of borrowers looking to purchase the home of their dreams or refinance their existing home. Positions available: Amazing Branch Opportunities, and Mortgage Loan Originators • Be your own Boss and control your own Income … • Flexible hours and aggressive commission structure … • Sales Incentives and referral rewards. • Qualified live leads and real time internet leads are provided and the ability to develop a broad referral network. Locations: Licensed in 31 states, branches in seven states and growing.


F E A T U R E D

L I S T I N G S

Company name: Paramount Residential Mortgage Group Inc. Web site: www.prmg.net Phone #: (951) 547-6343 E-mail: jobs@prmg.net Company bio: PRMG is a national leading lender built by originators for originators! We deliver jumbo, FHA/VA and conventional products with a high focus on purchase, pricing and service! Grow with a winning team! PRMG is rapidly expanding and opening branches throughout the country. We are looking for qualified individuals that are highly motivated and experienced along with a level of professionalism when it comes to understanding and meeting the needs of our customers. Positions available: Account Executives, Loan Officers, Branch Managers, Sales Managers Locations: New England, Midwest, Pacific Northwest, Mountain, Southeast and Southwest regions

Company name: Real Estate Mortgage Network Web site: www.remnwholesale.com Phone #: (866) 933-6342 E-mail: aerecruiting@remn.com Company bio: Real Estate Mortgage Network (REMN) is a national wholesale lender, servicing brokers and bankers across the country. REMN provides both government and conventional mortgage products with an emphasis on customer service. Since 2002, we have been providing same day turn times on new files submitted by 11:00 a.m. EST. That is our commitment to customer service. Positions available: REMN is searching for experienced Account Executives nationally. The preferred candidate is currently working within the broker, bank and credit union communities and has a proven track record of wholesale success with Conventional, FHA, VA, and USDA lending. The candidate should be passionate about customer service and knowledgeable about FHA, VA, USDA and Conventional financing options. Locations: Nationwide

Company name: PB Financial Group Corporation Web site: www.pbfinancialgrp.com Phone #: (877) 700-3703 E-mail: info@pbfinancialgrp.com Company bio: We are a direct private money and bridge financier in California. Positions available: Account Executives Locations: Metro California Areas

Company name: TagQuest Inc. Web site: www.tagquest.com Phone #: (866) 376-5540 E-mail: info@tagquest.com Company bio: TagQuest Inc. is a full-service marketing firm leading the mortgage industry with its experience in the mortgage marketing field. TagQuest brings forth a unique opportunity to utilize this experience and expertise in varying sales and marketing environments. We are committed to helping mortgage companies overcome the many challenges associated with identifying, acquiring and retaining their clients. Positions available: Account management, sales, and production positions available. Locations: Medford, Ore. and Seattle, Wash.

Company name: Prime National Credit Repair Web site: www.primenational.com Phone #: (888) 795-PNCR E-mail: scottz@primenational.com Company bio: Prime Nationals Credit Repair is a National Credit Repair Company that helps people clean derogatory items off of their credit reports. We are rated A+ by the Better Business Bureau (BBB). Our services are 100 percent guaranteed and are almost always finished within 30 days. We have been very successful helping our clients remove bankruptcies, foreclosures, short sales, charge-offs, collections, judgments and liens. Again, 100 percent money back guarantee. Positions available: We are looking for outgoing, self-starters, positive attitudes and motivated people to meet with clients, mortgage brokers, car dealerships, banks, bankruptcy attorneys, etc. to help their clients clean up their credit reports so they can qualify to get the home, car, rentals that they have applied for but have been turned down for credit or had to pay excessively high interest rates. This is an independent contractor position. Income is unlimited. We are excellent training and support. Locations: Our services are offered in all 50 states.

Company name: United Fidelity Funding Corp. Web site: www.uffwholesale.com Phone #: (855) 953-2453 E-mail: jbell@uffmortgage.com Company bio: Start 2014 with a Leading National Wholesale Mortgage Lender! FNMA, FHLMC and GNMA product offerings supported by a TEAM concept. Let us build your support TEAM just for you! Positions available: Account Executives, Account Managers, DE Underwriters, Sales Managers/Teams Locations: Corporate office in Irvine, Calif., and AEs at national locations. Call for information.

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F E A T U R E D

Company name: United Northern Mortgage Bankers Ltd. Web site: www.unitednorthern.com Phone #: (800) 486-3001 E-mail: careers@unitednorthern.com Company bio: United Northern Mortgage Bankers Ltd. is one of the oldest and most respected lending institutions in the nation. We have managed to prosper during challenging economic times because of our experienced and ethical leadership. We are looking for top professional talent to add to our amazing team as we expand nationwide. We offer professional and personal development seminars, fun company outings and much more. Our marketing platform is unsurpassed. Call today and be prepared to be blown away! Positions available: Branch Managers, Team Leaders, Licensed Loan Officers and Area Managers Locations: NY, NJ, NC, PA & FL

L I S T I N G S

Company name: WJ Bradley Mortgage Capital LLC Web site: www.wjbradley.com Phone #: (866) 366-1305 E-mail: recruiting@wjbradley.com Company bio: W.J. Bradley Mortgage Capital LLC is a privately-held independent residential mortgage lending firm headquartered in Centennial, Colo. with centralized fulfillment operations in Salt Lake City, Utah. With nearly 100 branch locations, located predominantly in the Western region of the United States, the company is licensed in 38 states and currently operates with more than 1,200 professionals. The company is always looking for qualified, experienced originators who are seeking a new home with a reputable and growing lender. Positions available: Loan Originators, Loan Processors, Underwriters, Document Control Specialists Locations: Colorado, California, Nevada, Arizona, Utah, Minnesota, Texas, Illinois, Washington & Florida

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Company name: WCS Funding Group Web site: www.happymortgage.com Phone #: (410) 536-3601 E-mail: aparry@happymortgage.com Company bio: As a true correspondent lender, we make loan decisions in house and on site. This allows us to control every step of the loan process. The end result is one on one service and fast closings. We can be heard each week on our regional radio show, “The Happy Mortgage Show,” on Saturdays at 10:00 a.m. This provides regional exposure and many leads for our originators. Positions available: Licensed Mortgage Originators with at least two years of experience and active realtor relationships, as well as a proven track record. Excellent compensation plan and marketing support provided. Locations: Baltimore, Md.

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Company name: United Wholesale Mortgage Web site: www.uwm.com Phone #: (800) 981-8898 E-mail: unitedwholesale@uwm.com Company bio: United Wholesale Mortgage Makes Lending Easy by providing exclusive products and innovative technology to support our client’s needs. As the nation’s number one ranked wholesale lender, UWM delivers superior communication, underwriting consistency and elite client service to our network of originators on every loan. We invest in your success with unique offerings like free customizable marketing; UWM Connect-which reconnects you to past borrowers; and UWM’s mobile app to easily access our leading broker Web site, EASE, on the go. Positions available: Inside Account Executives; Senior Underwriters; Underwriter II; Closers Locations: Troy, Mich. at the company’s headquarters


APPRAISAL MANAGEMENT COMPANY

AUDIT/COMPLIANCE/EDUCATION

BRANCH OPPORTUNITIES

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

BONDS & LICENSING

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

It’s Time…to join one of the Top Mortgage Bankers as Branch Managers or Loan Officer NOW! Why? You Have Our Guarantee!

JANUARY 2014 n National Mortgage Professional Magazine n

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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.

The Bond Exchange www.bondedwithnamb.org (501) 224-8895 LOWEST-COST STATE MORTGAGE LICENSE BONDS Support NAMB in supporting you!

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.

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. 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!

APPRAISALS

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

COMMERCIAL BRIDGE LOANS BRANCH OPPORTUNITIES

Hometown Lenders (888) 606-8066 moreinfo@htlenders.com www.hometownbranch.com "WE HELP YOU GROW YOUR BRANCH AND SKYROCKET YOUR INCOME!" • • • • • • • • • •

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

EMERALD CREEK CAPITAL Gary Baxter, Associate Ph: 646-237-2561 gbaxter@emeraldcreekcapital.com www.emeraldcreekcapital.com COMMERCIAL REAL ESTATE FINANCING EMERALD CREEK CAPITAL, is a direct bridge lender, providing shortterm loans secured by commercial real estate nationwide. Our loans are fast, flexible and catered towards the specific requirements of each client. At Emerald Creek we recognize that many borrowers are in need of immediate financing. Our goal is to provide you with a flexible loan solution in the time frame you’re looking for. Opportunities for financing include but not limited to: • Office buildings -Apartment Complexes -Mixed use -Hospitality • Warehouse facilities -Light industrial space -Land plots –Retail • Residential Investment -Multi-Family/Owner Occupied Facilities Lending Parameters: • 1-3 year terms – Up to 65% LTV - $1-$25 Million - Close within 1-2 weeks One Penn Plaza – Suite 3406 | New York | NY | 10119


COMPLIANCE CONSULTANTS

BROKERS COMPLIANCE GROUP 167 West Hudson Street – Suite 200 Long Beach | NY | 11561 members@brokerscompliancegroup.com www.BrokersComplianceGroup.com Division of Lenders Compliance Group, BCG is the first and only mortgage risk management firm in the U.S. devoted to supporting the unique compliance needs of residential mortgage brokers. 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

COMPLIANCE/CONTINUING EDUCATION

AllRegs—Your Source for Fast, Reliable Answers 2600 Eagan Woods Drive, Suite 220 Eagan, MN 55121 (800) 848-4904 www.allregs.com AllRegs offers mortgage professionals fast, reliable answers needed to conduct their day-to-day business. From research and reference to business intelligence, from education and training to professional services, we are your definitive source for mortgage industry information. With tools for originators like NMLSapproved CE training, regulatory content libraries for compliance staff, guidelines for underwriters, policy  manuals for operations, and business intelligence for business development – we have you covered as the leading information provider for the mortgage industry. If you have a specific need, our professional services team can help with thing like policy, procedure or guideline development, as well  as custom training or publishing resources. Contact us to learn how we can help you – visit www.allregs.com today.

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.

CONTINUING EDUCATION

Clix Mg 1756 Hanshaw Road • Ithaca, NY 14850 Office: 727.474.1442 www.clixmg.com

Mortgage Seminars MortgageSeminars.com 248-403-8181 Cost: Only $19.95 per month per physical office location Jeff Mifsud, a former FHA Direct Endorsed Underwriter trained by HUD and an FHA Originator for over 15 years, is publisher of The FHA Originator, a monthly marketing newsletter which gives 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!

Titan List & Mailing Services, Inc. 1020 NW 6th St Suite D, Deerfield Beach, FL. 33442 (800) 544-8060 www.TitanLists.com Titan List and Mailing Services, Inc. is a direct marketing agency that offers a complete range of advertising and design services. The firm specializes in data lists (mail/phone), printing, direct mail, graphic and website design as well as internet and SEO marketing. Starting in 1998, the company has, since then employed highly skilled individuals who have considerable experience regarding marketing trends. The company manages the complete in-house campaign themselves including Design, Data Lists, Printing, Postage, and Mailing.

No contracts so sign up today and give yourself the tools to brand yourself as The FHA Expert in your marketplace. Cost: Only $19.95 per month per physical office location.

CREDIT REPORTING

LENDERS COMPLIANCE GROUP 167 West Hudson Street - Suite 200 Long Beach | NY | 11561 | (516) 442-3456 www.LendersComplianceGroup.com MortgageLeads.org 888-695-3239

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.

Credit Plus, Inc. 31550 Winterplace Parkway, Salisbury, MD 21804 800-258-3488 www.creditplus.com

You want to close more loans. We can help you do it. Accurate information is the basis of smart lending decisions. Credit Plus, Inc. provides that – and more. We’re the company mortgage professionals trust for intelligent insight, smart information that enables them to mitigate risk and build their business. Our information services line is more than 160 products strong. Our expertise in the mortgage industry enables us to quickly assess current and future needs, and provide new solutions for a rapidly changing environment. We move mortgage professionals forward.

Mortgage Internet Leads $9.99. Find out why the nation's top lenders partner with MortgageLeads.ORG. Target by: • Refinance • Purchase • HARP • FHA • VA • Reverse. Close more loans today 888-695-3239 or click www.MortgageLeads.org

n National Mortgage Professional Magazine n JANUARY 2014

LEADS

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Clix Mg, provides the mortgage industry with compliant marketing solutions. We assist mortgage companies to balance the competing needs of effective marketing campaigns and compliance. Our management team includes attorneys, software developers and marketers, combining more than 50 years experience in the industry. During the past year Clix Mg has been developing the LCP (“Lender Compliance Portal”). LCP is a web based platform that provides mortgage companies the ability to track, control, oversee and approve every marketing piece, material, campaign or program according to their own guidelines in an easy user friendly and cost effective manner. LCP provides reporting capability for internal as well as State and Federal audits.


LOAN ORIGINATION SYSTEMS

MARKETING SERVICES

VALUATION SERVICES

Gets you more referrals, inquiries, and closings! Count on Calyx: Weâ&#x20AC;&#x2122;re ready to help you do more 800.362.2599 sales@calyxsoftware.com www.calyxsoftware.com Calyx Software is the leading provider of affordable mortgage solutions for banks, credit unions, mortgage bankers and brokers. We design products that enable smooth bi-directional flow of data from beginning to end. Our solid, yet flexible, LOS gives you: â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

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T

hatâ&#x20AC;&#x2122;s what mortgage loan                                         

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Lenders can take advantage of Calyxâ&#x20AC;&#x2122;s fully integrated automated underwriting and pricing products to help them determine loan eligibility, pricing against investor or FHA guidelines while staying compliant in 2014.

BrochureGuy.com

MARKETING/NEWSLETTERS

RECRUITMENT

Veros Real Estate Solutions "Innovating Mortgage Technology" veros.com | (866) 458.3767 Follow us on Twitter at @verosRES Veros has been an industry leader in real estate collateral valuation management & decision analytics for more than a decade. We offer a wide variety of software solutions and tools to help you manage collateral valuation from the beginning of the mortgage chain and throughout the life of the loan. Contact Veros today to learn about: â&#x20AC;˘ Sapphire â&#x20AC;&#x201C; the most comprehensive valuation management platform â&#x20AC;˘ VeroVALUE â&#x20AC;&#x201C; the industryâ&#x20AC;&#x2122;s leading national AVM â&#x20AC;˘ VeroSCORE â&#x20AC;&#x201C; automated appraisal scoring quality control tool â&#x20AC;˘ ComplianceTRACK â&#x20AC;&#x201C; independently designed AVM cascade â&#x20AC;˘ VeroFORECAST - most advanced residential market forecast Email Veros at info@veros.com to learn more or to schedule your complimentary product demonstration.

WAREHOUSE LENDERS

â&#x20AC;&#x153;The year I started their Lender Letter and Week e klly Economic Update, my business the eW DOUBLED. Thank you, Right Side Marketing, for your excellent products and service.â&#x20AC;?

JANUARY 2014 n National Mortgage Professional Magazine n

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Steve Peterson Sierra Pacific Mortgage

Why should every mortgage broker consider obtaining a warehouse line from Goldome Financial? Go to our website www.Goldome.com Press â&#x20AC;&#x153;Click Hereâ&#x20AC;? and we will tell you

Creating Creating inf informative ormative and wellwellwritt written en prin printt and e e-newsletters -ne ne ewsletters ffor or mor tgage pr offession essionals sinc e 1985. mortgage professionals since

or call us at 469-444-9800

SSee ee for yyourself ourself rrightsidemarketing.com ightsidemarke eting.com 800.456.4395 MARKETING SERVICES

RETAIL BRANCH

Contac t: Ji m M elc hi or, VP of S ales

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.

WHOLESALE/CORRESPONDENT LENDERS

973-646-3067 AFR Wholesale ranked #1 with the most Sponsor Originated FHA 203(k) closed loans.*

CLOSE MORE LOANS W ITH: Maaverick Funding Corp. is a direct mortgage lender licensed in 30 states across the country. Haavving obttained FHA, VA A, USDA and Fannie Mae appro ovals, Maaverick is growing and seeking top talent for their expanding nationwide footprint.   

 

My Guide is offered in traditional magazine print, as well as our newest electronic flipbook version, bringing â&#x20AC;&#x153;flipping through a magazineâ&#x20AC;? experience right to your desktop

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Contact me today to learn more about this one of a kind opportunity!

Maverick Fundingg Corp. NMLS# 7706

FREE PROCESSING - NO LENDER FEES ** â&#x20AC;˘ Co nve nt i o n a l â&#x20AC;˘ U S DA â&#x20AC;˘ M a n ufa c t ure d H o usi n g â&#x20AC;˘One -Time Close Construc tion â&#x20AC;˘ Fre d d i e M a c O p e n Acce s s a n d Fa n n i e M a e D U R P â&#x20AC;˘ VA â&#x20AC;˘ FH A, FH A 203( k ) a n d 203( h ) R e h a b i l i t at i o n l o a n s Lender NMLS:2826 - 9 Sylvan Way, Parsippany - NJ, 07054 - *See website for details: www.afrwholesale.com This is not an adver tisement ex tended to the consumer as defined by Sec tion 226.2 of Regulation Z. Equal Housing Lender. Equal Opportunity Employer. **No Lender fees by AFR. Third party fees may apply. AB120313


WHOLESALE/CORRESPONDENT LENDERS

WHOLESALE LENDERS

Close Jumbo Loans Others Cannot Service more jumbo borrowers with New Penn’s Jumbo Advantage portfolio product 877-930-PENN www.GoNewPenn.com

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

Jumbo Advantage Highlights: • Market leading jumbo rates • Loan amounts up to $2 million • Cash out up to $400,000 • FICO down to 680 • Expanded loan-to-value (LTV) up to 85% (no MI) • Expanded debt-to-income ratio (DTI) up to 50%

HomeBridge is a national wholesale lender offering both conventional and government products. We are committed to providing the highest value to our clients through competitive pricing, unique product offerings, superior customer service, and state-of-the-art technology. Currently expanding and hiring experienced Wholesale Account Executives nationwide. Please send your resume to marketing@homebridge.com. Building bridges to success, one loan at a time.

The Direct Path into the Reverse Mortgage Market. Ralph E. Rosynek, Jr. / Senior Vice-President National Production Manager /HECM Direct Endorsement Underwriter E-Mail: rrosynek@rmsnav.com / rrosynek@rmpath.com Office: 281.404.7970 / Cell: 708.774.1092 / EFax: 866.543.5420 URL: www.rmsnav.com • www.RMPath.com

Rushmore Home Loans is a wholesale lender dedicated to understanding and answering the needs of our brokers. We provide competitive mortgage loan products with a focus on quality, efficiency and flexibility. Our goal is to deliver an experienced, customer-focused team with access to the most comprehensive technology platform to deliver the highest possible service to our brokers.

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

United Wholesale Mortgage 800-981-8898 www.uwm.com UWM has a full set of mortgage products to meet all of your lending needs with Conventional, FHA, USDA (Rural Development), VA, Jumbo, HARP 2.0 and DU Refi Plus. With UWM’s ELITE program, you will receive the most aggressive conventional rates and pricing in the industry for your elite borrowers! Discover Lending Made Easy with United Wholesale Mortgage!

n National Mortgage Professional Magazine n JANUARY 2014

Rushmore Home Loans www.rushmorehl.com 888.202.0878

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.

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Whether you are an experienced reverse mortgage professional looking to grow faster or a firm wanting to create a new product line, allow RMS’s production division RMPath to work with and alongside you to build a strategic path to success. We have: • Correspondent, Wholesale Lending And Aggregation Partnering • We Offer Exceptional Customer Service And Market - Leading Pricing • Powerful, Secure, Scalable Loan Origination Systems • Proprietary State-Of-The-Art Technology Utilizing The RM COMPASS Technology Platform • Customizable Production Strategies To Fit Your Needs • Rapid Execution And Exceptional Customer Service • Excellent Compliance And Regulatory Controls

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


calendar of events N A T I O N A L

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P R O F E S S I O N A L

FEBRUARY 2014

Sunday-Thursday, March 9-13

Tuesday, April 8

JULY 2014

Sunday-Wednesday, February 2-5

Thursday-Friday, February 6-7

Wednesday-Friday, March 12-14

2014 Mortgage Matchmaker: The Business-Building Event for Mortgage Professionals River City Casino 777 River City Casino Boulevard St. Louis, Mo. For more information, call (860) 922-3441, e-mail info@agilityresourcesgroup.com or visit www.mortgage-matchmaker.com.

Monday-Wednesday, July 7-9

CREF/Multifamily Conference & Expo The Peabody Orlando 9801 International Drive Orlando, Fla. For more information, call (800) 793-6222 or visit www.mortgagebankers.org.

2014 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 www.mbanj.com.

California Association of Mortgage Professionals 2014 Sales & Marketing Conference Newport Beach Marriott Hotel & Spa 900 Newport Center Drive Newport Beach, Calif. For more information, call CAMP at (916) 448-8236 or e-mail info@ca-amp.org.

American Land Title Association (ALTA) 2014 Business Strategies Conference The Omni Nashville Hotel 250 5th Avenue South Nashville, Tenn. For more information, call (202) 296-3671 or visit www.alta.org.

Wednesday, February 12

JANUARY 2014 n New Mexico Mortgage Professional Magazine n

M O R T G A G E

Florida Association of Mortgage Professionals Broward Chapter 2014 Annual Trade Show "Mend Your Broker Heart" The Broward Convention Center 1950 Eisenhower Boulevard Fort Lauderdale, Fla. For more information, call (954)205-0022 or e-mail cmartin@bmscorp.net.

Tuesday-Friday, February 18-21 Mortgage Bankers Association (MBA) 2014 National Mortgage Servicing Conference & Expo The Peabody Orlando 9801 International Drive • Orlando, Fla. For more information, call (800) 7936222 or visit www.mortgagebankers.org. MARCH 2014

Sunday-Tuesday, March 2-4 2014 NAMB Legislative & Regulatory Conference Hilton Garden Inn—Capitol 1225 First Street NE • Washington, D.C. For more information, call (972) 758-1151 or visit www.namb.org.

Tuesday-Wednesday, March 18-19 National Reverse Mortgage Lenders Association Eastern Regional Meeting & Investment Forum “New HECM, New York” New York Times Square Hotel 300 West 44th Street New York, N.Y. For more information, call (202) 939-1760 or visit www.nrmlaonline.org.

Thursday, April 17 23rd Annual Rocky Mountain Mortgage Lenders Expo Denver Marriott Tech Center 490 South Syracuse Street • Denver, Colo. For more information, call (303) 773-9565 or visit www.cmla.com.

Ultimate Mortgage Expo 2014 Hotel Monteleone 214 Royal Street • New Orleans, La. For more information, call (860) 922-3441 or e-mail info@agilityresourcesgroup.com. AUGUST 2014

Thursday-Friday, August 7-8 2014 Louisiana Mortgage Lenders Association Education Conference New Orleans Hilton Riverside 2 Poydras Street • New Orleans, La. For more information, call (225) 590-5722 or visit www.lmla.com. SEPTEMBER 2014

Thursday-Saturday, September 4-6

2014 Texas Mortgage Roundup Marriott Plaza San Antonio 555 South Alamo Street San Antonio, Texas For more information, call (860) 922-3441 or e-mail info@agilityresourcesgroup.com.

Florida Association of Mortgage Professionals 2014 Convention & Trade Show Rosen's Shingle Creek 9939 Universal Boulevard Orlando, Fla. For more information, call (850) 942-6411 or visit www.famb.org.

Friday, April 25

Tuesday-Friday, March 18-21

MAY 2014

Saturday-Monday, September 13-15

MBA’s National Technology in Mortgage Banking Conference & Expo 2014 JW Marriott Los Angeles LA Live 900 West Olympic Boulevard Los Angeles For more information, call (800) 793-6222 or visit www.mortgagebankers.org.

Monday-Thursday, May 5-8 American Land Title Association (ALTA) 2014 Federal Conference & Lobby Day The Grand Hyatt 1000 H Street NW Washington, D.C. For more information, call (202) 296-3671 or visit www.alta.org.

NAMB National 2014 Luxor Resort and Casino 3900 Las Vegas Blvd South Las Vegas For more information, call (860) 922-3441, e-mail vvalvo@agilityresourcesgroup.com or visit www.nambnational.com.

APRIL 2014

Thursday-Saturday, May 15-17

OCTOBER 2014

Thursday, April 3

50th Annual NAPMW National Education Conference Seattle Airport Marriott 3201 South 176th Street Seattle, Wash. For more information, call (800) 827-3034 or visit www.napmw.org.

Wednesday-Saturday, October 15-18

2014 Maryland Association of Mortgage Professionals Annual Conference Annapolis Elks Lodge #622 2517 Solomons Island Road Edgewater, Md. For more information, call (410) 752-6262 e-mail mamp@assnhqtrs.com.

To submit your entry for inclusion in the National Mortgage Professional Calendar of Events, please e-mail the details of your event, along with contact information, to newsroom@nmpmediacorp.com.

American Land Title Association (ALTA) 2014 Annual Convention The Westin Seattle 1900 5th Avenue Seattle, Wash. For more information, call (202) 296-3671 or visit www.alta.org.

Sunday-Wednesday, October 19-22 MBA’s 101st Annual Convention & Expo Mandalay Bay Hotel & Casino 3950 South Las Vegas Boulevard Las Vegas For more information, call (800) 793-6222 or visit www.mortgagebankers.org.


WHOLESALE DIRECT FREE PROCESSING - NO LENDER FEES

LOSE, Y YOU OU ORIGINATE, ORIGIN NATE, T W WE EC CLOSE, ITâ&#x20AC;&#x2122;S THA AT S IMPLE. THAT SIMPLE. 888.913.3912 www www.afrwholesale.com/wd .afrwholesale.com/w d Lender NMLS 2826. AFR Wholesale, a division of American Financial Resources, Inc. is a nationwide wholesale residential mortgage lender and an approved lending institution. The company is a GNMA issuer, FNMA seller/servicer, FHA Mortgagee, USDA National Lender and VA Automatic Lender. This information is provided to assist business professionals. This is not an advertisement extended to the consumer, as defined by Section 226.2 of Regulation Z. - Equal Housing Lender - Equal Opportunity Employer. Corporate office located at 9 Sylvan Way, Parsippany, NJ 07054. AB110813



New Mexico Mortgage Professional Magazine January 2014