JUNE 2013 Volume 5 • Number 6
FROM THE 1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com STAFF Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 ericp@nmpmediacorp.com Joel M. Berman Publisher - CEO (516) 409-5555, ext. 310 joel@nmpmediacorp.com David J. Coster Senior Editor davidc@nmpmediacorp.com Robert Peter Ottone Assistant Editor (516) 409-5555, ext. 314 robertpo@nmpmediacorp.com Joey Arendt Art Director joeya@nmpmediacorp.com Jon Blake Advertising Coordinator (516) 409-5555, ext. 301 jonb@nmpmediacorp.com Beverly Koondel National Account Executive (516) 409-5555, ext. 316 beverlyk@nmpmediacorp.com
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Scott Koondel Operations Manager (516) 409-5555, ext. 324 scottk@nmpmediacorp.com ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact National Account Executive Beverly Koondel at (516) 409-5555, ext. 316 or e-mail beverlyk@nmpmediacorp.com. ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or email ericp@nmpmediacorp.com. The deadline for submissions is the first of the month prior to the target issue. SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@nmpmediacorp.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National 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 © 2013 NMP Media Corp.
publisher’s desk
The Catch 22 of compliance (take two) Last month, I discussed how I attended a recent Mortgage Bankers Association (MBA) trade show and the hot button topic of the day was compliance. Well, what do you know … this month, we take a detailed look at the world of compliance as we focus on the subject of “Are You in Compliance?” The introduction of the Dodd-Frank Act has given birth to an entire industry of compliance professionals whose sole job is to keep the mortgage professionals of today on top of the changes which govern their industry. These compliance professionals hold volumes of knowledge which guide the marketplace and keep the industry of today on the right path to legally assisting today’s consumer to close a home loan. These compliance professionals are deemed guardian angels by many because without their existence, a firm may deviate from abiding by today’s industry standards and they will find themselves either heavily fined or out of business entirely. Today, compliance now is cemented into sales, and one cannot function without the other. This issue will highlight how the two (compliance and sales) work in conjunction to create large and stable mortgage industry of today. Johnna Leeds of Data Facts kicks things off on page 46 in her article which provides seven tips on how to remain in compliance in today’s marketplace. On page 48, Jim McGann of Index Engines takes a closer look at many of the root issues and causes of compliance breaches. Scott K. Stucky of DocuTech Corporation on page 50 provides an easy-to-use checklist of things to look for when building your compliance plan. On page 51, myrmecologist mortgage professional and Eric Weinstein takes a satirical look at the issue in his piece, “Compli-Ants Problems.” James Dooley of NewOak Capital takes a look at things management must know and be wary of when implementing a compliance plan in his article on page 53. Mark H. Fleming, CMB of Actualize Consulting on page 54 shares the three lessons learned from compliance in 2013 in his article, and wrapping up our section this month on page 56 is an article from Kathalin Carvalho from ProVest discussing the development of a successful corporate compliance program.
Weighing the costs If you have not already made compliance a high priority in your organization, now is the time. In order to validate my previous statement, one must weigh the costs of non-compliance versus compliance. Say you fail to comply. In doing so, you leave yourself open to scrutiny. Scrutiny from your industry peers who, by word of mouth, may network with others and let them know that you do not play by the same rules everyone else is mandated to play by. Your reputation will suffer as your networking partners will dry up and no one will want to do business with you. Consumers may too get wind of your non-complaint practices. Word of mouth, via the keyboard and other social media outlets, can tarnish one’s business reputation as well. How are you going to do business if no one wants to do business with you? Finally, you will be scrutinized and fined by those in charge of governing the industry, those who set the rules … the regulators. These fines are not slaps on the wrist either as evidenced by the rulings handed down in our judicial system on an almost daily basis. Now, with these three points of contention serving as my basis as to why one should be compliant in today’s marketplace, is there any doubt? Be in compliance or get out. No matter how successful you may think you are, failure to comply may cost you everything in the end.
NMP’s Mortgage Professional of the Month This month, we had a chance to chat with Corey Dubnoff, president of American Financial Resources Inc. (AFR). Corey started AFR in 1997, and has built the firm from the ground up. Corey treats his customers as family and treats them as such, with trust and honesty, a business model that has seen AFR excel in today’s marketplace. See page 34 for David J. Coster’s profile on Corey Dubnoff and AFR. I feel this issue is as vital an issue that we have ever put out. The bottom line is comply or get out. You want to stay in business and thrive and make a living in this profession, then get in compliance. I cannot state it any more clear than that. Those who do not follow that, well you are risking a lot … your livelihood, your reputation and in more extreme cases, your freedom as those who play the dangerous game of non-compliance could wind up in behind bars. The choice is yours … Sincerely,
Joel M. Berman, Publisher-CEO NMP Media Corp. joel@nmpmediacorp.com