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Issue 041 December 2010

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


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.

Strength. Service. Relationships. Icon Residential is one of the nation’s leading Conforming, Jumbo and FHA wholesale lenders. Our strength, success and longevity is derived from delivering customers service that exceeds our valued business partners expectations. With deep industry knowledge, financial stability and innovative technology we provide the solutions for our business partners to fund loans while avoiding risk.

• DTI Subject to DU Findings • Free DU • Jumbo Loans to 2 Million • Direct Access to Underwriters • FHA/FHA Streamlines • Bank Funding • VA IRRRLs

For additional information regarding Comforming, Jumbo and FHA Lending, Call us at 1-888-647-1967 or visit us online at

Appraisal compliance and quality concerns? Mercury Network is the premiere online Vendor Management Platform, or VMP, allowing lenders and AMCs to manage their entire appraisal workflow while being compliant with all appraisal independence standards and banking security regulations. Mercury combines a cloud-based SaaS core with a robust appraiser desktop plugin architecture that automates the appraiser’s data flow to and from clients.

It’s been used by more than 200,000 mortgage professionals since 2002 to completely automate the full “round trip” of tens of millions of appraisals. Now, it’s handling 10,000 transactions every day, dwarfing other systems. So call us to see how we can ease your compliance concerns, eliminate delays, keep everyone in the loop, and help you close more deals, faster. You’ve got nothing to lose.

Simplify appraisal management, control quality and compliance — from order to closing.

Close without concerns or delays Reduced risk, controlled compliance, hassle-free processing, and thrilled borrowers and LOs. Make this your next closing.

Order the appraisal through Mercury Network

The best appraiser for the job is instantly alerted

Nothing to install, with easy online ordering and real-time status updates.

The best appraiser from your panel or ours, based on criteria you set, is selected by our customizable Intelligent Selection System. They receive a mobile alert and can respond instantly.

Report is checked against thousands of rules before delivery The customizable pre-delivery rules eliminate phone tag and underwriting delays. Only Mercury can give you this pre-delivery QC because it’s on the desktop of over half the nation’s appraisers.

Appraiser gets data on site with mobile tools that eliminate errors A full fee, experienced appraiser gathers data based on checklists — eliminating errors, and the resulting delays. Data is sent back to the appraiser’s desktop in MISMO XML format, compatible with Fannie’s UCDP.

Call us for a no-pressure walkthrough 1-800-434-7260 •

ADCODE: MANRMERC1210 a la mode and its products are trademarks or registered trademarks of a la mode, inc. Other brand and product names are trademarks or registered trademarks of their respective owners. All prices, terms, policies, and other items are subject to change without notice. Copyright ©2010 a la mode, inc.

Certified Forensic Loan Auditors, LLC

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• Wholesale rates on Forensic Loan Audits, Securitization Audits, Predatory Lending Lawsuits, TRO’s to Stop Sale • Expert Witness Services/ Demand Letters/ QWR/ Civil Complaints/ TRO/ Lis Pendens • BBB Accredited / Attorney Operated Litigation Support / 100 employees nationwide • DON’T GET BURNED BY USELESS SOFTWARE PROGRAMS • Securtiization Classes: December 3rd – 5th & January 7th – 9th • Forensic Loan Auditor Classes: December 16th – 19th & January 13th – 16th • Upcoming webinar trainings (visit website for more information) “I have had tremendous success utilizing the certified forensic loan audit. Moreover, Certified Forensic Loan Auditors is without a doubt the most comprehensive and complete forensic loan audit on the market.” Eric Hougen, Esq. “If anyone wants to become a Forensic Loan Auditor or is already, this course is a must!!! You will not just do the audits, you will understand and be able to truly help your clients.” Linda Zimmerman

(1) Identifying the most likely candidate investment vehicles. This is the entry-level product that clients choose in order to determine whether a loan was securitized and which avenue it likely took into the securitization market. Our researchers look for typical characteristics with appropriate cut-off dates to narrow the ballpark and provide a basis for a Tier Two Memorandum. (2) Identifying the Note holder and the specific investment vehicles into which your client’s loan was securitized. This is not always possible due to SEC regulatory limitations, however, the Tier Two Memorandum can provide a much more complete and detailed account of where the loan went and, in many cases, which investor purchased it and who the last holder of the Note was reported to the SEC. (3) Public Records Research and Report: Our experienced and dedicated team will comb through County records to obtain evidence of fraud or unauthorized transfers and assignments of property. A comprehensive report details our findings. • Also performing Securitization Training Webinars and Courses starting in Fall 2010 • See Website for upcoming MCLE Continuing Education Seminars on Securitization

Certified Forensic Loan Auditors, LLC is not a law firm and does not give legal advice. We are a business to business litigation support company and our work product is only performed on behalf of Mortgage Professionals and Attorneys.

Certified Forensic Loan Auditors, LLC 13101 W. Washington Blvd. Suite 140, Los Angeles, CA 90066



Issue 041


December 2010

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


pg 45


pg 45


pg 46


pg 46

Service Providers

pg 47


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.


peter hĂŠbert cec trainer mortgage industry author


Twas The Night Before Christmas


shhh ... Frank & BRian speak

Martin Andelmann mandelman matters




What's your mortgage IQ?





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



December 2010

from the editor's desk

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


e h t ke Become part of GSF Mortgage’s Professional Branch Network

Becoming a GSF Pro-Branch grants you access to many of the services that may not be obtainable in your current environment. GSF offers total support: Payroll Accounting Compliance Marketing Processing Lead Generation State of the Art Technology Free Education & Licensing Live Securities Pricing On Staff Legal Counsel GSF Mortgage approved for: FHA VA USDA Freddie Mac Fannie Mae Seller Servicer Jumbo Non-Conforming Reverse Mortgages 203k

Be in business for yourself, but not by yourself. Join GSF Mortgage’s Professional Branch Network! Enjoy freedom and stability… and reap the rewards!

Contact our Client Relations Manager 1-877-494-4448 • Signing Bonus for Branch Managers • Retain 100% of Your Commissions (Absolutely NO file fees, NO splits)

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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.


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




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


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.



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TNR - December 2010  

Feature Article Is The Loan Officer Dead? by Rick Roque