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Goodbye Medical Debt
YVETTE CLERMONT, MORTGAGE CONSULTANT, INLANTA MORTGAGE
> PAGE 12
Overcoming Rejection YVETTE CLERMONT WANTS OTHERS TO BE TREATED BETTER FINANCIALLY > PAGE 4
Working In A Consumer Review World > PAGE 16
INSIDE: CHOOSE WHAT TO DO NEXT > PAGE 14 FIRST-TIME COMPETITIVENESS > PAGE 19 STAY COOL OVER RISING RATES > PAGE 22 A P UBLI CATI ON OF AMERICAN BUSINESS MEDIA
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Goodbye Medical Debt
YVETTE CLERMONT, MORTGAGE CONSULTANT, INLANTA MORTGAGE
> PAGE 12
Overcoming Rejection YVETTE CLERMONT WANTS OTHERS TO BE TREATED BETTER FINANCIALLY > PAGE 4
Working In A Consumer Review World > PAGE 16
INSIDE: CHOOSE WHAT TO DO NEXT > PAGE 14 FIRST-TIME COMPETITIVENESS > PAGE 19 STAY COOL OVER RISING RATES > PAGE 22 A P UBLI CATI ON OF AMERICAN BUSINESS MEDIA
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STAFF
Vincent M. Valvo CEO, PUBLISHER, EDITOR-IN-CHIEF Beverly Bolnick ASSOCIATE PUBLISHER Christine Stuart EDITORIAL DIRECTOR Kelly Hendricks MANAGING EDITOR David Krechevsky EDITOR Keith Griffin SENIOR EDITOR Mike Savino HEAD OF MULTIMEDIA Katie Jensen, Steven Goode, Douglas Page, Sarah Wolak STAFF WRITERS Laura Brandao, Chrissy Brown, Tina Asher, Tyna-Minet Anderson, Tara Healey, Kate Gurevich CONTRIBUTING WRITERS Alison Valvo DIRECTOR OF STRATEGIC GROWTH Meghan Hogan DESIGN MANAGER Christopher Wallace, Stacy Murray GRAPHIC DESIGN MANAGERS Navindra Persaud DIRECTOR OF EVENTS William Valvo UX DESIGN DIRECTOR Andrew Berman HEAD OF CUSTOMER OUTREACH AND ENGAGEMENT Tigi Kuttamperoor, Matthew Mullins MULTIMEDIA SPECIALISTS Melissa Pianin MARKETING & EVENTS ASSOCIATE
F R O M T H E E D I TO R
Adjusting To The Highs And Lows
T
his business is not for the faint of heart. We have come off the highest volume years in 2020 and 2021, while dealing with an at home workforce for the first time for many of us. The highs were intoxicating as we shattered goals thought never attainable. Now that we have come down from our record originations, the only thing rising is rates.
DIFFICULT TIMES AHEAD
While we are not faced with the same challenges from the crash of 2008, we are faced with challenges just as difficult. New Unfair, Deceptive or Abusive Acts or Practices Kelly (UDAAP) expansions, rising rates, reduction in staff, and Hendricks nervous originators. The fight is on for each and every deal. Many shops are focusing on product expansion and shoring up training needs. New products seem to come into the market just as others are retired. Staying on top of changes is the name of the game. While volume is lower than expectations, this is the time to sharpen your skills and learn from our past. We will make it through to the other side of these challenging times and hope sharing stories of those along with you in the trenches will help you do just that. In this issue you will find many of these topics are touched on and we hope that by sharing the success of many women in the industry you find new ways to adapt and move forward.
Kristie Woods-Lindig ONLINE ENGAGEMENT SPECIALIST Michael Castro MARKETING MANAGER Ben Slayton FOUNDING PUBLISHER Submit your news to editorial@ambizmedia.com If you would like additional copies of National Mortgage Professional Call (860) 719-1991 or email info@ambizmedia.com
www.ambizmedia.com © 2022 American Business Media LLC. All rights reserved. Mortgage Women Magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: American Business Media LLC 88 Hopmeadow St. Simsbury, CT 06089 Phone: (860) 719-1991 info@ambizmedia.com
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Mortgage Women Magazine welcomes your feedback. If you have comments, questions, criticisms, praise, or information to share with us and our readers, please write us at Khendricks@ambizmedia.com.
OUR MISSION Mortgage Women Magazine is dedicated to providing quality informational/ educational content that betters women in the mortgage process at every step. The content is oriented to help women progress their understanding of the residential mortgage banking business and develop their skills at improving efficiency, effectiveness and profitability at all levels.
MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
3
Trailblazers
Blazing a Path … Raising the Bar
From Initial Rejection To Helping Others Succeed YVETTE CLERMONT WANTS TO SEE FUTURE GENERATIONS BE FINANCIALLY PREPARED
T
By LAURA BRANDAO, Contributing Writer, Mortgage Women Magazine
his month I spoke with Yvette Clermont. She is a mortgage consultant with Inlanta Mortgage, in Sarasota, Florida.
“ Don’t you dare underes the power of your own
When Yvette was a young woman she tried to obtain a mortgage loan. When she met with a lender she was dismissed as being too young and not ready to purchase a home. That experience gave her the motivation to learn and understand how others felt being denied for a home loan and it was the beginning of a successful career in the mortgage industry.
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How did you get your start in the mortgage industry? YC: I started in the industry when I was quite young when I joined a personal loan company. The company I worked for at the time also offered second mortgages, and that part of the business really caught my interest. I realized quickly that I like the real estate part of the job and wanted to point my career in that direction. Starting wasn’t easy. I had very little experience and I had to find someone to help me open the door. I was successful in finding that person who was willing to train and mentor me. We ended up working together for many years. My mentor was looking for someone to train from the “ground up” and I was the perfect candidate. I was 23 years old, motivated, and thirsty for knowledge so it was a perfect match for us to begin working together. It was important for me to have my mentor, co-workers and clients trust me, so I made every effort to learn. I started reading the FHA and the Conventional Loan Standards Manuals from cover to cover. I even printed them out into binders so I could refer to them! I was determined to succeed. Another thing that motivated me was an encounter I had when I was 22. I wanted to purchase a home so I set up an appointment with a lender via my estate agent. Barbara Corcoran real The lender was dismissive of me when I told him why I was there. He assumed due to my age that I wasn’t serious or ready to learn how to buy property. Instead of giving me information, he shooed me out the door and I think that treatment was part of what pushed me into the industry. I felt defeated and let down and I didn’t want others to ever feel that way. I wanted to help them reach their goals, giving them the encouragement, information and confidence that I had been denied.
stimate instinct.” –
What do you think we need to do to open doors for others in our industry to make sure
YVETTE AND HER HUSBAND, DAN, ENJOY A SIESTA KEY SUNSET.
there are plenty of seats at the table for them in the future? YC: I believe that those of us who have been in the mortgage business for years have an obligation to share our knowledge and experience with newcomers. We have been given the benefit of opportunity and that needs to be paid forward to a new generation of colleagues. We have weathered storms, we have seen boom and bust times and we know those will come again. Giving the next generation the tools and insight that we might not have had when we started not only feels good but strengthens our industry overall. We can also learn from them and
give ourselves the benefit of seeing the business through fresh eyes and new ideas. The technology we use has changed significantly since we started, and these younger people have the benefit of familiarity with it that we can learn from too. Tell us how you and your team work to educate families and your community about the financial options and tools available to them? YC: I spend a lot of time talking to people and explaining the ins and outs of mortgages and finances. It is one of CONTINUED ON PAGE 6
MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
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TRAILBLAZERS CONTINUED FROM PAGE 5
the biggest parts of our job and I find it both rewarding and a challenge. I can only educate one person at a time so I always feel like I can do more. I am a big proponent of teaching kids about these things in school, before they are out on their own. I really believe young people should graduate having a basic understanding of how financial matters work and how they can prepare themselves for their future financial needs. Mortgages and finance are complicated and involve a lot of legal and regulatory pieces. Even we in the industry need to keep up, remaining abreast of legislative changes and rules. When someone comes to me wanting to take out a 30-year loan to buy a home, I need them to understand what that entails and how it will impact them. Not just the day they sign, but down the line as well. I would love to see new loan officers coming into the business paired with veteran loan officers to really learn all the ways to give clients sound and reliable advice. There is a vast amount to know and having someone give you a solid grounding in the business would benefit all of us, our clients most of all. We have so many mediums of educational material at our fingertips now that there is no excuse for not knowing the basics. From written
What do you think the definition of a trailblazer is and do you see yourself as a trailblazer and why? YC: I think a trailblazer is someone who has enough gumption to go down a path that others aren’t willing to or don’t see. The trailblazer is someone whose eyes are open wide enough to courageously take that unseen path and risk whatever they encounter out of curiosity and a desire to be better or learn something new. I do see myself as a trailblazer. I question everything and I look for paths others cannot see or will not look for. I seek out better or different ways to do things and then do the work if I think they will benefit my clients or make something easier for my staff and customers. My youngest child is 20. We raised him in an environment where questions were welcome and encouraged. We motivated him to question things but always be respectful. We taught him that authority is to be respected but not followed blindly and to trust his instincts when he heard or saw something that didn’t feel right. In a nutshell, a trailblazer for me is a questioner. Someone who actively looks for information or paths that are not right in front of them but require some initiative and the willingness to step outside of the status quo. Tell me what advice you would give to women starting out in
“Giving the next generation the tools and insight that we might not have had when we started not only feels good but strengthens our industry overall.” material to online tutorials and podcasts, the wealth of information out there is almost too much to choose from. I hope everyone who is either in or coming into the industry will take advantage of that wealth to serve our customers better.
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the business who are raising young kids and figuring out how to balance it all? YC: My best advice is to take care of you first. You cannot be a good
caretaker to your family, your partner, or your clients unless you are taking care of yourself. I know that is a tough thing for women to do. We tend to want it all and give it all but leave ourselves and our own health and well-being out of the equation and it lessens our ability to fulfill our obligations to those who need us. In actuality, self-care can be as simple as buying those cupcakes for the school fun fair instead of staying up to 3 a.m. baking or booking yourself a pedicure once a month. Whatever gives you time to recharge your batteries and gives you the energy you need to be your best for those who depend on you.
YVETTE AND HER HUSBAND ENJOYING SARASOTA BAY ON THEIR BOAT NAMED WHAT’S NEXT?
Sometimes people don’t act on opportunities not because they are afraid of failure but because they are afraid of success. What are your thoughts on that and what would be your advice on getting past that fear? YC: I believe this fear comes from being concerned about what others may think of you if you fail or what might be expected of you if you succeed. No one wants to be judged and some people may feel that success means you have upset the apple cart or changed the status quo and will therefore be subject to negative scrutiny by your peers or customers.
My advice for overcoming that mindset is to see it for what it is, understand that the feelings of others are out of your control and let it go. That sounds easy but I know it may not be that simple for everyone. That is how I deal with the situation myself. I realize that I cannot control how others will feel or react to something I say or do. I recognize that and put that fear of judgment in a box and put it away on a shelf. That is a mental exercise that has helped me to put myself in a better mindset to be able to enjoy and learn from my successes and my failures. Please share your thoughts on how you believe we should
encourage more women to get into the mortgage business and into leadership roles? YC: I think our industry has done a great job in welcoming more women over the years, but I still believe we can and should do more. There was a time when women coming into the business never really expected to be leaders. But that has changed. And I see us being better able to spot and encourage women with potential and put them on the path to leadership with a realistic expectation of success. We should also be encouraging and supporting women who want to be trailblazers. They are creative, intuitive, and intelligent women who can
move us all forward in the mortgage industry if we give them the support and opportunity to show us their best. Knowing you are good at what you do is a huge confidence boost and when the veterans in your industry are cheerleading you, it is an amazing feeling and one that can motivate a young woman to move up the ladder. It is also vitally important not to get complacent when you reach a certain point of success. The natural inclination is to say that you are comfortable, but one of the things we need to encourage is for women who are successful to go even further, to push themselves to stay curious, find CONTINUED ON PAGE 8
MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
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YVETTE ATTENDING THE MARINE CORPS BALL WITH HER VETERAN FATHER, LARRY.
TRAILBLAZERS CONTINUED FROM PAGE 7
a new or better way of doing their job and innovate to keep our business fresh and current. Where do you see our industry heading in the next few years? What do you think we should be focusing on? YC: I am a great believer in looking as far down the path as I can see to be ready and willing to take on the challenges in the future. Technology is changing at such a rapid pace, and we need to be keeping up with the trends and learning how we can use them to move our industry forward and better serve our clients. We should be asking questions, testing, and trying out new technology, processes and procedures that will make our jobs easier but give our clients the best experience possible. Our clients rely on us to keep current and to provide them with a quick and modern solution to their financial requirements. It takes dedication and work to make sure we take advantage of all the new tools at our disposal. In our business it’s vital that we continue to grow our networks. How do you recommend getting through the awkwardness and discomfort of first meetings?
the business and being able to meet with and learn from others in our industry. There are great conferences out there to attend that will allow you the opportunity to get to know many new faces in the mortgage business and expand your contact lists. I know that meeting new people is tough and can be awkward. It is the
“I seek out better or different ways to do things and then do the work if I think they will benefit my clients or make something easier for my staff and customers.” What are your own strategies? YC: I highly recommend joining organizations like the Mortgage Bankers Association and others like it. It is a great way to get your name known in
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same for all of us. The way I make that process easier for myself is to ask questions. People always appreciate the chance to talk about themselves and what they do. Asking good questions and letting another person
share with you makes it easier to share yourself and build a new relationship. Human interaction and sharing are the best and easiest ways I know to get past the initial awkward spot and move on to getting to know someone. Those relationships that begin with an expression of mutual interest and trust have the best chance of growing into something mutually beneficial. It is worth the moment or two of anxiety when the end goal is a new friend and colleague. What do you like to do for fun outside of your job? YC: I love to travel. Our kids live all over the country, so our downtime is usually spent traveling to one place or another to visit. I have a passion for traveling and when we are not off catching up with our kids, I love to head outside the United States to see and learn new things. My natural curiosity compels me to head to different countries and experience their culture, food, and scenery. I love learning about how CONTINUED ON PAGE 10
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(317) 625-3287 MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
9
SHARI BURGO, SAMANTHA GATES, NICOLE ZICH AND YVETTE OF TEAM CLERMONT.
“You cannot be a good caretaker to your family, your partner, or your clients unless you are taking care of yourself.”
TRAILBLAZERS CONTINUED FROM PAGE 7
TRAILBLAZERS CONTINUED FROM PAGE 8
others live and how different they are from us in America. My favorite country so far is Croatia. The people are amazing. Friendly, curious about their visitors and so welcoming. Their country is old and absolutely beautiful. It is a mix of old and new and so fascinating to see that juxtaposition. We are so very lucky the way we live here and seeing other countries reminds me of that. It also opens my mind, feeds my soul and encourages all my senses to experience something
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new and exotic. I think it actually lights up my brain and creates new brain cells because you leave your daily autopilot behind and can immerse yourself in everything new and different. I have already planned our next trip to Slovenia and Hungary. We are planning to spend a month in Budapest, and I cannot wait. I am already anticipating all the new things to learn, see, do, and experience. What one piece of advice would you like to share with our readers? YC: I really want to encourage people in our industry to find a coach
or mentor as early on in your career as you can. I would suggest that this person be someone from outside your company. The reason for this is that I believe that the more objective the opinion you receive, the more valuable it can be. Having someone looking in from the outside gives you a completely new and fresh perspective. That is unique and not colored by any internal biases. That said, it is also great to have a mentor who works at your company if they are not your direct report. You need some distance to get a truly objective look at what you do and how you do it. It also means that there is no filter to the information you get that might be influenced by internal office politics. A mentor or coach can help to motivate you to move beyond your comfort zones and try new things or gain the confidence you need to make suggestions within your team that might improve the service provided to your clients. Finding a mentor should be as simple as finding someone you look up to and asking them to consider taking that role for you. Being a mentor can also be a great experience. Taking a person new to the industry under your wing and helping them to work to their full potential is not only rewarding but can also be an opportunity to learn new skills and ideas. The mentor/mentee relationship can be immensely beneficial to each side and foster innovation and greater success for both. There is great power in numbers so joining yourself to someone from whom you can learn and gain wisdom and confidence is a vital part of a successful and rewarding career. n
ME DI DEBCAL T
Medical Debt Collections And Impact To The Homebuyer DEBTS WILL NO LONGER BE TREATED AS FISCAL MISMANAGEMENT LIKE OVERDUE CAR LOANS BROWN, CMB, AMP, CRU, Special contributor to Mortgage Women Magazine
n March of this year, the nationwide credit rating agencies (CRAs), better known as Experian, TransUnion and Equifax, announced a significant change to their score analysis model data. This announcement was regarding medical collections and their impact on the score. Let’s start with the facts surrounding this change. As of July 1, 2022 the following changes will become effective: • Paid medical collection debt will no longer be included on consumer credit reports. • The time period before an unpaid medical collection debt will appear on a consumer’s report will be increased
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CHRISSY'S
I
By CHRISSY
CORNER
from six months to one year. In the first half of 2023, medical debt collection accounts under a predefined
minimum threshold (will be at least $500 and published later this year) will no longer be included on consumer credit reports. The CRAs initial analysis suggests that once all three pieces are in effect, approximately 70% of medical collections will be impacted. This is great news for the American public and their ability to obtain homeownership. The subject of medical collections has long been a topic of discussion. Most of the lending agencies (Fannie/Freddie/VA/USDA/FHA) have ceased counting it against the borrowers during the underwriting process. The reason this has been a topic
These changes will finally close the gap and allow many borrowers to qualify for homeownership that previously may not have been able to. of discussion is due to the fine line between a negative debt occurrence and financial mismanagement. It is very different from a borrower taking out a car loan for $60,000 in which they then miss payments on. Most medical situations are not a debt that the American public are taking on due to their inability to manage their finances. The lift that the underwriting guidelines have provided were a huge help over the last couple of years; however, didn’t have any bearing on the impact in minimum FICO score. These changes will finally close the gap and allow many borrowers to qualify for homeownership, that previously may not have been able to. It will also provide some interest rate
relief, as the FICO score has an impact on rate. Which in turn should help open up more opportunities for qualification. We reached out to Experian to see if they had any insight on the significance of the change in score that we could anticipate on the heels of these changes. Unfortunately, currently there has not been a study for score impact, however, one is underway. The lending community is incredibly hopeful that the impact from these changes will broaden the ability for many borrowers to qualify for the home of their dreams. n Chrissy Brown is chief operations officer for Atlantic Bay Mortgage.
MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
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Are You Living Your
Best Life?
IF NOT, WHY NOT? CHANGE CAN BE REALLY HARD BUT YOU HAVE THE POWER TO CHOOSE WHAT YOU DO NEXT. By TINA
T
ASHER, Contributing Writer, Mortgage Women Magazine
Tina Asher
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wo months before my 50th birthday, I was laid off from an industry I devoted 30 years to. I guess some people would call that a “midlife crisis” yet it was the fuel that energized me to make radical changes in my life. I became a business owner, published my first book, and have helped countless people make radical changes in their lives too. The truth is, if that incident didn’t happen, I might still be struggling to find the right time to pursue the job of my dreams. Don’t make choices happen for you, choose what you want and go after it. Read on for tips on:
OVERCOMING THE OBSTACLES TO MIDLIFE CAREER CHANGE
Midlife is a lot like being a teenager again — only with more wisdom. We may not stay out all night and run with a wild crowd, but many in their 40s and 50s experience the same restlessness and yearning for change. We’re still asking questions about what we want to be when we grow up, but the questions are deeper, more profound. This time we won’t settle for less than what makes us truly happy. This is especially true for the work we do. Yes, we want to pay the bills,
hearts, to grow, because of perceived barriers,” writes Carole Kanchier in Dare to Change Your Job — and Your Life.
BREAKING DOWN THE BARRIERS
Her book is one of many resources that help break down those barriers, the two biggest of which are fear and confusion. Fear. We think: I’m too old to change. If I switch jobs now, I’ll have to start over at the bottom. What if I fail, then what? Fear is normal, and it’s important to acknowledge it. There are numerous tactics to help you through the fear. The most powerful may be looking to others who’ve gone through life/career changes. Confusion. Many of us are clearer about what we don’t want
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Midlife is a lot like being a teenager again — only with more wisdom.
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support a family, save for old age. But, many of us now want our work to be meaningful and make a difference. We ask ourselves if not now, then when? What better time to act on those unfulfilled dreams? Work is one of the most profound ways we live our true selves, and now is the time to start doing that. Yet, it can seem as if there’s a chasm between the knowing and the doing. We know something’s not right with our job or career path, but we tell ourselves to live with it. We set goals but feel too overwhelmed with daily life to try something new. We worry that to make a change to follow a dream would be selfish, especially if it means a loss of income, or upsets our family and friends. In fact, every person living out his or her dreams gives a gift to the world — a gift because it inspires others to do the same. “We often hesitate to follow our
than what we actually do want. We may have lived out others’ expectations of us for so long we’re not even sure what actually makes us happy. Or we’re not certain how to turn our many talents and skills into meaningful work. Coaches are an excellent resource to help you ask the right questions to sharpen your focus and goals. They can guide you to imagine and create real work that isn’t just a job, but a whole new life. If you’re interested in a no-obligation discussion to learn how you can get support, let’s have a conversation. You can reach me at tina@builduup.net. Whether it’s a new career or small shifts in how you work, making a change in midlife can bring new energy and joy for life. Like being a teenager again — only better. n
the fly, including its fields, forms, reports, user-permissions, statuses, communications, automation, and more — no IT or development work required. The platform’s role-based design, with custom dashboards and task lists, and advanced review technology, further ensures compliance and helps deliver the most optimal appraisal process imaginable, regardless of one’s unique business model. evoinfo@globaldms.com globaldms.com
Tina Asher is a coach and founder of Build U Up Consulting.
MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
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A UDAAP Expansion THE CFPB’S NEW MEMO ABOUT CONSUMER COMPLAINTS By TYNA-MINET
R
ANDERSON,
special to Mortgage Women Magazine
Tyna-Minet Anderson is vice president of Mortgage Educators and Compliance.
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ecently I saw a product on Instagram that grabbed my attention, offering an ingenious solution to a problem I never even realized I had. To my analytic-self’s dismay, my wallet was out within seconds and I was ready to buy. Fortunately, warning-levers were thrown just in time, and I paused to look closer at both the company’s online ratings, and its seemingly toogood-to-be-true product. As you might expect, the company’s reviews on their own site were all 4 and 5-stars, but curiously, other rating sites had the same company listed much less
favorably. One particular site gave them a cumulative ranking of 1.9 out of a possible 5. That’s when I put my wallet away, and I’m left to wonder about how much better my life might’ve been. It’s a consumer review world More than ever, today’s consumers turn to online reviews to help them make decisions related to where and how to spend their hard-earned money. The Consumer Financial Protection Bureau (CFPB) has taken notice. On March 22, 2022, the CFPB released Bulletin 2022-05 which outlines ways in which mortgage
companies may be in violation of Unfair and Deceptive Acts or Practices (“UDAP”) related to consumer reviews. This new bulletin, similar to Unfair, Deceptive or Abusive Acts or Practices (UDAAP), is unique in the sense that it specifically targets consumer reviews. “In America, no corporation should be able to silence a customer from posting an honest review online,” said CFPB Director Rohit Chopra in a press release about the new bulletin. “Corporate disinformation campaigns that suppress legitimate reviews or manufacture fake reviews are not only a threat to free speech and fair competition, they are also illegal.” Based on the new guidance, there are three areas companies should be aware of to safely avoid violations of the Consumer Financial Protection Act. First: Get rid of widespread contractual ‘gag’ clauses Often when settling lawsuits, my firm would insert non-disparagement
Considering the CFPB’s consumer complaint and review stance since the inception of the Bureau, it comes as no surprise that they are interested in protecting the integrity of those consumer complaints. clauses into resolution agreements. It’s both reasonable and desirable to have agreed-to settlements resolve not just current issues, but also prevent new ones from arising in the future. In situations where parties were already adversarial, these clauses not only helped put emotional issues to rest, but also allowed each party to move on with their lives in peace. That said, the CFPB has taken issue with these clauses if they are used in boilerplate contracts, meaning they’re designed to be sent to all customers
in advance, rather than to be used to resolve a previous conflict. If your company has included any sort of contractual restriction on negative consumer reviews, they should be removed. If you haven’t recently reviewed your client-facing documents and disclosures, now is a great time to do so. Keep in mind that even if your company never intends to act on any such clauses, it may still be deemed a CONTINUED ON PAGE 18
Grow with Us. Remote opportunities. Supporting leaders. Advocates for YOUR success. www.joinatlanticbay.com
This communication does not constitute a promise or guarantee of employment. Atlantic Bay Mortgage Group L.L.C. NMLS #72043 (nmlsconsumeraccess.com) is an Equal Opportunity Employer.
MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
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UDAAP
CONTINUED FROM PAGE 17
violation because these clauses, by their very nature, deter individuals from making truthful negative statements. Second: Do not create fake reviews (or hire someone else to do so) Companies that create fake reviews deceive the public about the quality of their products and services. In the mortgage industry, we understand that our reputations are critical, especially when considering that our businesses are literally built upon our ability to provide the best customer service humanly possible. It may be enticing for some to resort to paying for reviews but be cautious. The $5 fake review that “seemed like a good idea at the time,” may ultimately be what ends up costing you thousands in fines in the long run, not to mention hefty withdrawals of the public’s trust. Try this instead: Once borrowers get into their homes, they’re usually very happy to provide positive reviews about the individuals and companies that helped them get there. Ask them then! Recognize that it’s far, far better to ask for reviews from new and happy homeowners (and other past clients)
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than it is to fake it. Third: Respond to — but don’t hide — those bad reviews No one likes to receive a bad review, especially after spending hours working for the individual that just threw a dagger at your heart. Take solace in knowing that all service professionals are likely to receive a negative review at one point or another. The best option in such a scenario is to post a thoughtful response, without disclosing any borrower-specific information. This allows your highroad professionalism to shine through. It also awards you the opportunity to potentially shift the perspective of new customers by shedding clarifying light on the situation. It might be that the customer was upset about something outside of yours or your company’s control. Without your input, the reader of the negative review is left to wonder. The formula works Customer reviews are a source of pride when your hard work is reflected online. Mortgage Educators, at the time of this writing, has precisely 6,295 reviews on TrustPilot, with a 4.9 out of 5-star rating. Yes, we’re pleased with that number, but I still read every negative review and believe me, even
though I would love to make them disappear, they’re all there. Our company’s answers for negative reviews are the same answers I’ve shared with you; we strive to maximize the opportunity for positive reviews each day, and we address all negative reviews in a professional and insightful manner. Considering the CFPB’s stance on consumer complaints and reviews since its inception, it comes as no surprise that the bureau is interested in protecting the integrity of each consumer complaint. Several mortgage companies have discovered through audits that the audit regulators want to know how companies respond to complaints. If you have not done so recently, we highly recommend performing searches online to find any reviews that you may be unaware of. We also recommend performing searches for individual MLOs, and their personal reviews, in order to respond to all reviews that are affiliated with your company. We encourage you to make this a regular practice. Use negative reviews to build a better, stronger company that your borrowers can trust. n Tyna-Minet Anderson is an attorney and owner of Mortgage Educators and Compliance.
THE MODERN M ARKETER
ASK THE
EXPERTS By
TARA HEALY
UNCHARTED WATERS KEEPING FIRST TIME HOMEBUYERS COMPETITIVE IN THE MARKET
H
omeownership. It’s a simple word, yet it represents so much for many. Homeownership means much more than owning a structure built with wood, nails, and drywall. For most, it’s a feeling that produces an emotional response like no other. It’s a symbol of autonomy, accomplishment, and the opportunity to build generational wealth. It’s easy to understand why the goal of homeownership is indeed an integral part of the American dream. But is achieving this dream in jeopardy? A recent article from Fortune.com reports that housing inventory
“has fallen dramatically since the pandemic,” from 1 million active listings to just a little over 400,000 between January 2020 to January 2022. Interest rates have increased sharply from last year as well, significantly impacting a consumer’s buying power. Home prices have also increased which has diminished consumers’ ability to buy. In fact, National Association of Realtor (NAR) Senior Economist Nadia Evangelou recently projected that nearly 13 million households will be priced out of buying a home this year. As mortgage professionals, we have a unique opportunity to serve our customers and help them realize their own American dream. But how do we do this effectively in today’s market? How do you serve your community and keep your business afloat with higher mortgage rates, high home prices, and the current economic environment? What happens when first-time homebuyers are having issues qualifying for a mortgage or competing with other homebuyers? I had the opportunity to pose these very questions to an amazing group of professionals. Their responses not only provide insights on what they’re doing but deliver a message of hope. Like true mortgage professionals, we are a nimble bunch and are experienced in adjusting our sails. I hope you enjoy reading these perspectives and can glean insights that will be useful to your business.
CINDY ERTMAN
CEO & Founder of The Defining Difference and Mortgage Master Pro From my tenure in the mortgage industry and working through many
MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
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CINDY ERTMAN
changing and challenging markets, I believe we are back to a normal interest rate market. The last two years were an anomaly and were a gift for those who were prepared for the opportunity. The key to our mortgage success is to be able to adapt and manage the fear when our markets change. This is definitely a changing market, but still a very low interest market, if we look at mortgage rates historically. Our
The key to our mortgage success is to be able to adapt and manage the fear when our markets change. clients have to qualify for their mortgages today and there is a great lack of inventory and a great number of potential homebuyers seeking homeownership, so I do not believe we are in a housing bubble, nor do the mortgage analysts that I follow. I still believe strongly that if you can qualify for a mortgage, that you should try to get in the game. Real estate is still the number one wealth building asset in the US. I sold a home many years ago because some
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JENNIFER RASMUSSEN
of the top Realtors in my market told me we were at the top of the market and interest rates were rising, so I sold my home. Today that home just sold for 5X what I paid for it and I kick myself for selling it. As a very wise analyst told me many years ago “time solves timing problems in real estate.” So, I’ve lived by that for the last many years, and it has served me well.
JENNIFER RASMUSSEN
PhD., and vice president and head of thought leadership at SitusAMC Insights The current mortgage environment is incredibly competitive, presenting challenges for both borrowers and lenders. Amid record low inventory, housing prices are up about 15% compared to last year. A sharp uptick in mortgage rates since the beginning of the year will further eat into potential homebuyers’ ability to afford a home and increasing inflation will hinder the ability of first-time homebuyers to save for a down payment. SitusAMC Insight’s national single-family affordability Index has fallen precipitously since the start of the pandemic; homes are the least affordable they have been since 2007. Yet, owning a home is still more affordable than renting nationwide, as multifamily rents began skyrocketing in most metros in the middle of 2021. This lack of cheaper alternatives is helping to stimulate demand for single-family homes in an already tight market. By expanding the box to support non-traditional borrowers, lenders can better serve their communities and their bottom line. Non-QM
loans open up homeownership to a broader group of individuals, including self-employed and gig economy workers. Borrowers, especially first-time homebuyers, can potentially benefit from wider credit score and down payment requirements. Expanding product type menus allows lenders to increase their offerings and better pivot toward changing market conditions.
By expanding the box to support non-traditional borrowers, lenders can better serve their communities and their bottom line. The challenge for lenders is being able to efficiently navigate these more complex, non-traditional loans. The low-rate environment and strong refinancing activity have fueled the mortgage industry for the last few years. However, these transactions are typically less complex and mostly employ basic
DAWN RYAN
underwriting practices supported through automated underwriting systems. The demand for manual underwriting significantly increases on non-QM loans but requires underwriters with extensive knowledge and expertise who can better understand risk profiles. Many lenders may now need to look outside their organizations to find such underwriters. Partnering with organizations who understand how to navigate this environment not only expands their market base but also can increase competitive advantages through increased service level agreements and turn times in this hyper-competitive housing market.
DAWN RYAN
Senior loan officer (NMLS #828476) with Embrace Home Loans in Middletown, RI We are navigating uncharted waters right now without the right equipment or even a baseline knowledge of what equipment, maps and charts are needed. Still, we’ve had similar financial cycles in the past which can help give some guidance on what lies ahead in the future. There are a number of variables impacting the financial and housing markets today. The financial and psychological ramifications of the pandemic continue to surface. For many people, there have been shifts in lifestyles, as well as their employment and housing situations. People are looking for more security, especially when it comes to housing. They are seeking a piece of the American dream of home ownership at an almost unprecedented rate. Inflation and the inability to
get goods and services are also influencing consumers’ mindsets. The lack of housing inventory and the stepped-up demand for houses has caused not only home prices to increase in many parts of the country — rental prices are going up as well. I best serve my community, my customers and business partners by staying in regular communication regarding products, rates and market shifts. There is no such thing as too
There are days when they are looking for a confidante and friend more than a loan officer. I’m happy to be that person. much communication and education in the mortgage business and that’s particularly true during these trying times for homebuyers. I also am a firm believer in being prepared for different scenarios. When it comes to qualifying my customers, I regularly update my buyers’ income and assets, especially when rates go up, as any rate increase may have an impact on their borrowing power. I work closely with Embrace Home Loans’
other departments to learn about any new loan products or changes in current products that might be coming down the road. By doing so, I’m always prepared to give my customers the best home financing options for their individual financial needs. I think it’s also important to have a plan B for my customers, whenever that’s possible. Above all else, I listen carefully to my customers to validate their feelings and learn about any stresses they may be encountering in the homebuying process. Good communication with my business partners is equally important. I assure my customers and my business partners that we are in this together until we reach the finish line. There are days when they are looking for a confidante and friend more than a loan officer. I’m happy to be that person. People today are just stressed out in general, often because they are starting to reconcile the significant emotional toll that the past two years have taken. Combine that with going through one of the biggest transactions of their lives and a very tough homebuyers’ market and it’s easy to see why people are pretty stressed out. So, if my customers or business partners want me to mow their lawn or fold their laundry or go for a long walk with them, I’m in! I’m happy to do whatever is needed to keep my customers and business partners in a good frame of mind. After all, the mortgage business is first a people business, and I never lose sight of that. Tara Healy is the chief compliance officer for Cherry Creek Mortgage, LLC.
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Finding The Cure For The
Summertime Blue ADAPTING TO A RISING RATE ENVIRONMENT
T
By KATE
GUREVICH, SPECIAL TO MORTGAGE WOMEN MAGAZINE
homas Fuller, a 17th Century English historian, once said, “We never know the worth of water until the well is dry.” Fortunately, the “well” of borrowers looking to buy or refinance a home is nowhere close to dry — but it’s a lot less full these days. As the summer homebuying season approaches, there are plenty of reasons to feel a little uneasy. Our industry has had a very strong run for several years now, but the housing waters are not as calm as they have been. Then again, I’m a firm believer that opportunities can be found in any market. It may just take a little more work and ingenuity to find them.
UNDERSTAND THE REALITY
Today’s challenges are difficult to spell out. We’ve had a long, long period of low interest rates, kept low by a global pandemic, a troubled economy, and some help from the Fed. Low rates combined with minimal housing inventory have pushed home prices to record levels. In fact, in March, the Case-Shiller Affordability Index reached the highest level on record. At least during the pandemic, homebuyers were still being treated to sub-3% rates. But that changed this year, when the war in Ukraine, higher gas prices and rising inflation lit a fire under rates, which have shot up to over 5%. And with the Fed poised to raise key rates this spring, they may go
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Kate Gurevich is managing director of Found It Home Loans, a division of Cherry Creek Mortgage, LLC
even higher. The housing market is already feeling the impact. No one was surprised when mortgage applications fell in March, the precise time of year when they normally head in the opposite direction. Meanwhile, the National Association of Realtors’ chief economist recently told CNBC that home sales volume could fall between 6 to 8% this year. We’re also seeing massive push by institutional investors in buying up real estate. This is partly because Fannie Mae and Freddie Mac have stayed out of the non-owner second home market and continue to focus on owner-occupied housing. Home buyers — and by
extension, mortgage lenders — are also facing new competitors that are coming out of the woodworks. For example, there’s a company that makes a cash offer on homes and holds the note for the borrower in case the borrower doesn’t close on the property. The one positive for buyers, if there is one, is that we’re likely to see some relief on home prices as appreciation gets squeezed. However, going from 10 offers per property to five is not going to be much of a breather. At FoundIt Homes, the real estate brokerage division of Cherry Creek Holdings, we’re still seeing sellers get multiple offers way over asking price, often regardless of the condition of the property. But sellers aren’t immune from today’s market challenges, either. If they sell, where are they going to go? This pandemic has taught us that we can just be as productive at home as in the office. Many Americans are able to work pretty much anywhere where there is a good Internet connection, which has led to a mass exodus out of urban centers in wintry states like New York and New Jersey to smaller towns in the country’s interior. But that is now pushing up prices in these areas as well.
TIME TO MAKE ADJUSTMENTS
In short, we’re in survival-of-thefittest mode, and the originators who relied solely off the extended wave of mortgage refinancing are not going to survive. The market is not all doom
es and gloom, but mortgage professionals who hope to keep their pipelines full will need to adjust their strategies. Part of the answer may lie in what smart, experienced originators are doing right now. The key to success in mortgage sales has always been relationships, but these relationships are obviously going to be more important than ever. At Found It Home Loans, we’re extremely fortunate to have many experienced, top performing loan officers on staff. At this moment, they are all focused on helping agents put their borrowers in a competitively advantageous position, primarily by providing fully underwritten loan approvals instead of the typical preapproval as well as other creative solutions to better position their clients to win their offers. The higher-level originators in my company are also working religiously with their contacts and trying to capture clients earlier in the sales funnel. Many are also working with agents to write shorter offers and advising borrowers to get appraisal gap coverage, which is very much a thing. As I see it, the originators who thrive in this market will be those who work with or for lenders that are able to offer these things as well as deliver fast closings. That includes same-day preapprovals and the ability for borrowers to upload documents online, which can help shorten purchase loan closings to as little as two weeks. Successful originators will also be
those who are able to offer a rich array of jumbo loan options and are backed by an internal team of marketers as well as lead generation and business building tools. As relationship building becomes more important than ever, originators will need to lean on mobile technologies that enable
well. It may take more creative ways to help borrowers get to the closing table. But in my experience, women originators and real estate agents are great problem solvers and able to think outside the box when it comes to getting homebuyers across the finish line.
The key to success in mortgage sales has always been relationships, but these relationships are obviously going to be more important than ever. them to engage and stay connected to both referral partners and consumers, especially in hot housing markets where it may take two or three tries to purchase a home. In spite of the market challenges, I think this is a great time for women mortgage professionals. It’s a very stressful market for everyone, especially first-time borrowers. Psychology is a big part of what mortgage professionals do, where they have to be mom, dad, teacher, judge and jury. Most women are naturally empathetic and able to relate to different personalities extremely
Today’s housing market is simply doing what it has always historically done — move in cycles. So while this latest market turn has been abrupt, at the end of the day, each of us have zero control over macroeconomic trends. Regardless of how high the well is, our job remains the same: helping borrowers achieve their goals to the best of our ability. The strong will evolve with the challenges into a resilient professional, recognized for their ability to thrive in any market. n Kate Gurevich is managing director of Found It Home Loans, a division of Cherry Creek Mortgage, LLC
MORTGAGE WOMEN MAGAZINE • Issue 3, 2022
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Now on tour! Join your fellow hard-working mortgage pros at one of our national Mortgage Expos.
G
ive your career a boost by attending one of our many regional mortgage events for loan origination professionals. Network with hundreds of mortgage brokers, loan originators and bank and credit union lending officers from
throughout your region for events full of education, networking and fun. These events includes a broad array of event partners from throughout the mortgage community, multiple education sessions and top speakers. You’ll be growing your business and your contacts in a setting packed with passion, professionalism and fun. Plus, earn your NMLS continuing education credits at FREE classes, happening the next day and open to all conference attendees.
O R I G I NATOR CO N N ECT N E TWO RK .CO M
Attend for free,* use code:
MWMFRE E
Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers reserve the right to determine final eligibility. NMLS Renewal class open to expo attendees only, other restrictions apply.
UPCOMING EVENTS
MAY
24 JUN
8
Suncoast Mortgage Expo
AUG
N MLS R EN EWA L CL A S S
19
Motor City Mortgage Expo
SEP
TA M PA , F L
D E T RO IT, M I
N MLS R EN EWA L CL A S S
1
Non-QM Summit
L A S VEG A S , NV NM LS R E NEWA L C L A S S
Texas Mortgage Roundup DA LL A S , TX
NM LS R E NEWA L C L A S S
JUST ADDED
JUN
16 JUN
23 JUL
6
JUL
7
JUL
21 AUG
11
AUG
19
Texas Mortgage Roundup S A N A N TO N IO, TX
N MLS R EN EWA L CL A S S
Great Northwest Mortgage Expo P O RT L AN D, O R
N MLS R EN EWA L CL A S S
Mortgage Star
N EW O RL E A N S , L A N MLS R EN EWA L CL A S S
Ultimate Mortgage Expo N EW O RL E A N S , L A
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Arizona Mortgage Expo PH O E N IX , AZ
N MLS R EN EWA L CL A S S
California Mortgage Expo S A N D IEG O, CA
N MLS R EN EWA L CL A S S
Originator Connect
L A S VEG AS , NV N MLS R EN EWA L CL A S S
SEP
8
SEP
13 OCT
11
OCT
18 NOV
8
DEC
13
Great Northwest Mortgage Expo SE AT TLE , WA
NM LS R E NEWA L C L A S S
California Mortgage Expo PA SA DE NA , CA
NM LS R E NEWA L C L A S S
California Mortgage Expo OA K L A ND, CA
NM LS R E NEWA L C L A S S
Colorado Mortgage Summit DE NVE R, CO
NM LS R E NEWA L C L A S S
Texas Mortgage Roundup HO USTO N, TX
NM LS R E NEWA L C L A S S
OCN Mortgage Holiday Party I RVI NE , CA
You’re invited! Live, in person!
JUL
Y 6 — 7 NEW , ORL EAN 2 0 2 2 S, L A
This July, rise above the rest at Mortgage Star, a speciallydesigned hands-on immersion event centered around superior results. Hone your skills, build relationships, and learn from other successful women in the industry — because we all know when women collaborate, great things happen. As a reader of Mortgage Women magazine, register for free using the promo code MWM F R E E
July 6 — 7, 2022
New Orleans, LA
www.mortgage-star.net LIVE CONFERENCE
