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then maybe, just maybe you’ll make it in this business. Just maybe!

The five words

The words we live by

Ralph LoVuolo Sr. has more than 50 years in the mortgage Industry, with the last 30 as a coach. He is past president and founder of the New York Association of Mortgage Brokers, and long-time member of NAMB—The Association of Mortgage Professionals. He can be reached by phone at (917) 576-1230 or email

Step Inside Ginnie Mae It’s the Best Time of the Year By Ted W. Tozer One of the things I enjoy about the holiday season is a chance to reflect on the past year. From our mission, to our business partners, to our own employees, I have much to be thankful for. From a mission perspective, Ginnie Mae has the privilege of supporting affordable housing through the mortgage liquidity we make possible. While we don’t touch consumers directly, our guaranty backs more than $1.6 trillion in mortgage-backed securities (MBS) that are essential to helping underserved households, U.S. military veterans, Native Americans and rural communities. During Fiscal Year 2015, we supported almost two million households with mortgage money that came from the issuance of $432 billion in Ginnie Mae guaranteed MBS, amounting to about one-third of the mortgage market. Clearly, there is a need for more affordable housing in our country, and we at Ginnie Mae are fortunate to have the ability to help. Of course, we cannot support those most in need without quality business partners. During the year, there continued to be a strong demand, both foreign and domestic, for investments in U.S. housing finance. This manifested itself in the investor demand for Ginnie Mae MBS, as well as the performance of capable mortgage servicers who administered the pools underlying our 81 MBS. All this activity occurred despite considerable obstacles: regulatory uncertainties, cost pressures, lack of progress on housing finance reform, and lingering effects from the Great Recession. Our business partners, whose efforts have been impressive and heartening, have the deep gratitude of all of us at Ginnie Mae. And that brings me to my appreciation for the Ginnie Mae employees. Our business has a very small staff, 129 professionals, that work with third-party vendors to support government mortgage markets. And as these markets grow, the responsibility placed on each employee increases. To give you context, at Fannie Mae and Freddie Mac, their total mortgage portfolios average about $400 million per employee. At Ginnie Mae, our MBS portfolio averages $13 billion per employee! That’s billion with a B. And that is just one reason why I am particularly thankful for our employees who manage our daily operations, monitor a wide array of risks, and modernize our business for the future. A wonderful mission, terrific business partners, and incredibly impressive employees. During this holiday season, these are the three things that I am thankful for. And I hope you are, too. Happy holidays! Ted W. Tozer is was sworn in as president of Ginnie Mae on Feb. 24, 2010, bringing with him more than 30 years of experience in the mortgage, banking and securities industries. As president of Ginnie Mae, Tozer actively manages Ginnie Mae’s $1.5 trillion portfolio of mortgage-backed securities (MBS) and more than $460 billion in annual issuance.

n National Mortgage Professional Magazine n DECEMBER 2015

What is really wrong with these words? These are the words we live by, right? These are the words that define our very existence, our very soul, aren’t they? These are the words we were taught to sing whenever we have the chance to croon for our clients. Well, you can look this one up: Words have meaning. Words when used in certain ways have meanings far beyond the strict definition found in any dictionary. Words are important and should not be spoken in a cavalier way because they define what we are, how we think, what we do. Words need to be phrased in such a way that when people hear our words, they can define us. Please write this down: It’s not what you say, it’s what people hear you say. If you wrote it down, you’ll be able to absorb it into your very being in a short period of time and then be able to carefully choose what you say from now till the day you pass on. People might not hear you say what you said. Maybe you ought to write that one down too. Why shouldn’t you say these five words? What’s wrong with them? What about them is so bad? For most of you, as life goes on, it seems apparent that you have a problem. You just won’t change what you do. I don’t mean that you can’t, because change is completely under your control. You can change what you think, how you act, what you say, where you go, whom you interact with; what relatives you will or will not spend time with, and how you conduct your business. In almost every way possible, you can change. But you don’t want to and if you don’t want to achieve success, you really are wasting your time reading any more of the ranting of an old soul like me. Why do you waste your time reading all this motivational, organizational crap? So what should you do? You should help your referral source make a better impact into their market. You should love their business. You should respect what they do. You should bring them an idea that will make them be more successful each day. It’s such a simple concept, so different of a philosophy than using the five forbidden words. You need to regularly see your referral sources. At least once every two weeks. If you see them more often, all the better. The philosophy is to help them, not you. And you need to mean it!

Let’s try this! When talking to a referral source never say these words “POINTS, PROGRAMS, RATES, SERVICE and COMPETITION.” Never again should you say them. You must make this statement to yourself over again till you are sick of the routine. In previous writings, I asked if you think you could ever have a conversation for more than an hour with a possible referral source and not use these five forbidden words. Since I haven’t heard from any of you, I assume you are all perfect and never use the five forbidden words. Here are the words and an explanation of them, just in case you question me: l Rates: If I’m an educated referral source, do you really think that I don’t already know that almost all mortgage companies have the same rates? Rates are universal, except in short bursts of time. Every mortgage company has to offer the same rates, within a small bandwidth, or they would be out of business in a week. l Points: The secondary market is the secondary market. Mortgages are sold to the same end buyers. Points are a function of rates. Most people want low closing costs most people want zero points. If you really can’t explain why points are important, your lack of knowledge might be costing your clients tens of thousands of dollars. l Programs: Sure, I know you have the most, the best, the most detailed list of unexplainable nonsensical information that has ever been sent over the airwaves. My programs are better than my competition. Don’t waste your time with the other people who come in here, they don’t know what they are talking about, but my rates, points, programs and service are the best, much better than my competition. l Competition: This is a good one. I’ve always loved how you all trash the competition. I can and will do it better than my competition. My competitors are all just making promises that they really cannot keep. My competition is not as good as me. I’m better than the competition. More nonsense! Here’s what you need to know: You have no competition. There is no one like you. You are unique. You are special. You do things that no one else does quite like you. You need to absorb this concept, let it become part of your being. Understand it in ways that become so ingrained in your being that you’ll really stop trying to convince everyone you meet that you are better than your competition. l Service: I’ve saved the best for last. If you’ve ever heard, ever, in your lack of business marketing life that you offer better service than the “competition” raise your hand. Oops, put your hand down. You look silly. Now maybe you want to raise both your hands if you can truly claim that

you have never said: “I will give you the best service that you’ve ever seen”. Ok, maybe you said it this way: “My service is better than anyone else.”

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National Mortgage Professional Magazine December 2015  

National Mortgage Professional Magazine December 2015  

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