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Issue 041 December 2010

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TheNicheReport.com

Join GSF’s ProBranch Network! www.GSFProBranch.com See “Page 7” for Details.

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Bringing Up Shhh ... Frank & the Right 54 30 10 Finding 18 The Rear Brian Speak Is The Loan Officer Branching Company FEATURE ARTICLE!

Asking the right questions determines your success.

Dead? 2010 Market Trends & 2011 Predictions.

So who's going to originate these loans?

Martin Joel Erzinger, et al.


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310-432-6304


CONTENTS

Issue 041

18

December 2010

Is The Loan Officer Dead? 2010 Market Trends & 2011 Predictions.

NICHE REPORTS Agency & FHA

pg 45

COMMERCIAL

pg 45

HARD MONEY & NON-PRIME

pg 46

ConStruction

pg 46

Service Providers

pg 47

Rick Roque FOUNDER & PRESIDENT Robert Pegg robert@thenichereport.com CO-FOUNDER & PRESIDENT David Pegg david@thenichereport.com MANAGING EDITOR Stewart Mednick stewart@thenichereport.com

10 14

28 37

Finding The Right Branching Company

Title XIV: The Mortgage Reform and Anti-Predatory Lending Act

Security, Privacy and Ethics Molly Dowdy EVP of Marketing, A la mode How to get new clients now.

Kurt Reisig CEO American Pacific Mortgage Asking the right questions determines your success.

DEPARTMENTS

peter hĂŠbert cec trainer mortgage industry author

09

Twas The Night Before Christmas

30

shhh ... Frank & BRian speak

Martin Andelmann mandelman matters ml-implode.com

33

THE VOICE OF HOUSING

35

What's your mortgage IQ?

50

LENDER & RESOURCE DIRECTORY

54

BRINGING UP THE REAR

Center Stage with United Wholesale Mortgage The Niche Report The Niche Report talks with Executive Vice President Mat Ishbia

6

39

December 2010

from the editor's desk

EDITORIAL / CONTENT MANAGER Kristen Moser kristen@thenichereport.com ACCOUNTING MANAGER Shawna Ingram shawna@thenichereport.com Advertising Director Jessica Grizzle Jessica@thenichereport.com Advertising sales Heather Bopp Heather@thenichereport.com Production Manager Henry Suchman henry@thenichereport.com Production Assistant Dawn Exner dawn@thenichereport.com COLUMNISTS & Contributing Authors Martin Andelman Molly Dowdy Frank Garay Peter Hebert Stewart Mednick Joe Murin Kurt Reisig Rick Roque Brian Stevens


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EDITORIALS / ARTICLES To submit an article for consideration in The Niche Report, please send an email to stewart@thenichereport.com or call 866.964.2695. We are interested in original writings relevant to mortgage brokers and other real estate finance professionals. If you have a comment or question about an article or editorial published in The Niche Report, or if you have a suggestion for a topic you would like to see featured in a future issue, please send an email to stewart@thenichereport.com.

THE NICHE REPORT POLICY The information and opinions expressed by contributing authors and advertisers within The Niche Report do not necessarily reflect those of BODA Publishing, LLC employees and should not be considered as endorsed or recommended by BODA Publishing, LLC.


FROM THE EDITOR'S DESK

This year is finally coming to an end. So much has happened in this year that I can not even begin to summarize. I do want to mention some landmark events in The Niche Report realm. We have developed some fantastic partners, sponsors and readership. The bandwagon grows and we are all enriched with knowledge, humor, points-of-view, and controversy. I want to recognize all of the contributing authors and columnists for their outstanding content of articles and professionalism in responsibility to write them. I want to thank the advertisers for believing in the magazine while our industry has been turned upside down. The greatest acknowledgement goes to the reader. I know we have independent brokers to company executives reading. No matter. If our content is good, then the reader is enriched. The Niche Report has grown in record proportion because of all the above mentioned. I see many aspects of the business in a different light because of the content I read every month. I find new lenders with cutting edge products and processing methods. I find new technology. I hold on to what I am familiar with and what is newly discovered. A personal story about such an epiphany: I have been a Calyx user my entire professional career. I have upgraded each new version of Point and originated hundreds of loans with their products. I now read the magazine and see advertisement by the company, articles written about the company and now hope that the company will even pony-up an executive author to write for the magazine. All this presence reinforces the fact that I now know that I have chosen an industry leader and an ethical and quality company to partner in my professional development. I never knew I would be an editor for an industry magazine ten years ago when I was using Point. Now, I am proud that this company, like tens of others, has chosen to be part of the best magazine in the industry. This reinforcement of seeing the advertisements of the companies I use and rely upon is testament of the quality, dedication and moral fiber that makes up these fine partners. OK, I am off my soap box and the flag waving, tear-jerking schmaltz is over. But to all of you readers, all of you authors, all of you advertisers, and all of you professionals that make this magazine successful, on behalf of the entire staff of The Niche report, we take a bow and acknowledge your contribution to a good thing. Thank you, and Happy New Year! May 2011 be even better!

Stewart Mednick

Official

MEMBER

TheNicheReport.com

9


Finding the Right Branching Company Asking the Right Questions Determines Your Success By kurt reisig

B

efore mortgage professionals start the process of evaluating branching companies, it is vital they perform due diligence to ensure they select a credible, stable, transparent company that will have longevity. Due to shifts in the industry, there has been an influx of new branching businesses that grew from other sectors. Many principals at these companies have backgrounds other than retail branching. This creates challenges as they are often unable to understand how to best support branches or loan originators. As the decision to affiliate with a branching company has the potential to shape one’s career, it is important to research, qualify and vet as thoroughly as possible. The selection of a top branching company will allow success for branch managers and employees.

The Right Questions, To Get the Real Answers Once a business owner or mortgage professional decides that they are ready to become affiliated for the first time, or to change affiliations, there are questions that are important to ask the potential employer. The first question to ask is “how long have you been in business?” It is important to have a deep understanding of not only how long the company has been around, but to have a clear picture of what type of business they have 10

December 2010

conducted over the years. For example, has the company always focused on retail branching or have they transformed and reinvented their focus recently? The longer they have been in the branching business, the better equipped they are to support their individual branches. Knowing how long the company has been in the branching business indicates how familiar they are with helping new branches transition into their organization, what support their branches need, the training they can offer to branch managers and staff and how to help support a successful transition. It is important to understand the company’s goals for the future, including how they will navigate regulatory reform. This will provide insight on where they are headed and the viability of their future survival and success. Research their mission and decision making processes, then evaluate how these have affected the company and how future decisions could impact your individual branch. Another important question to ask is “do the principals of the company have a mortgage origination background?” Listen to their response and attempt to identify the orientation of the company. For example, was the company leadership team formed by individuals that used to work originating loans, or are they currently producing loans? If the company does not understand today’s challenges at the branch level, it becomes difficult for them to relate to the day-to-day issues at the branch level. Ideally principals are in touch with what happens at the branch level and can make changes based on those experiences. If they have


“ENTITLE DIRECT has received regulatory approval to sell title insurance... with a simple pricing strategy: Charge a flat 35% less than the going rate in the local market.” Forbes

People are talking about title insurance. Weird, huh?

“The biggest cost that’s almost always negotiable are the charges for title insurance and related title services... ENTITLE DIRECT... charged $857.50 for that entire package — a savings of $787.” CBS Moneywatch

“[ENTITLE DIRECT] aims to undercut other insurers by at least 35%.” Wall Street Journal

But true. And maybe it's time you did too. Before your client reads about ENTITLE DIRECT1 or hears about it from a friend or an advisor or worse — your competition. ENTITLE DIRECT can save your borrower hundreds, even thousands of dollars on a jumbo closing. Being the first to tell your client and offering to request our title insurance on their behalf (it's easy with our dedicated call center) can help build a relationship and position you as a trusted advisor. It's also a great way to re-engage with refi prospects. There’s nothing to lose, except high-priced retail title costs. ENTITLE DIRECT has instant online quotes. If you like our rates — and what's not to like with savings of 35% or more — we'll guarantee them for your GFE in minutes. Use our closers or your own.2 So repeat after me: "I can save my borrowers hundreds, even thousands off closing costs with ENTITLE DIRECT." That wasn't too weird, right?

Call us at 1.877.936.8485 All title insurance policies are underwritten and issued and all licenses to issue policies and regulatory approvals received are held by EnTitle Insurance Company, 4600 Rockside Road, Independence, OH 44131. EnTitle Insurance Company is regulated by the Ohio Department of Insurance. * Except in NM where rates are set by statute. Subject to state laws and approval by EnTitle Insurance Company. Certain title and escrow services are not available in all states. CBS Moneywatch, Wall Street Journal and Forbes are copyrights owned by their owners.

1

2


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TNR - December 2010  

Feature Article Is The Loan Officer Dead? by Rick Roque

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