NMP National Mortgage Professional September 2022 by ambizmedia

2022SEPTEMBER Vol. 14, Issue 9 $20.00 A PUBLICATION OF AMERICAN BUSINESS MEDIA HATING THE EMPIRE STATE A lot of mortgage companies are not in a NY state of mind ISHOUSEDON’TOUTFLIPPINGPROFITABLE FLIP FINALLY — A TOP 10 LIST THAT SPOOKDON’TWORKSLETGHOSTSYOUATWORK GEN INDEPENDENCEITBUTTOWANTSZBUYONLYAFTERFINDSFINANCIAL

©Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-tobusiness communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. MS_A723_1221 Leader in Non-QM Visit AngelOakMS.com | 855.631.9943

The

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 3 Standing4 With Originators Deprivation brings out innovation as we discover during our packed mortgage originator events. Do6 These 10 Things! Take care of the basics to guarantee success. Handling8 The Ghosts Being ghosted is no longer exclusive to your social life. Tackling10 Disasters Financial system needs to be more resilient with ‘commando’ homeowners. Watch14 The Reductions Keep on top of the everchanging real estate market by mining the stats. People19 on the Move See who the movers and shakers are in the mortgage industry. EmergenciesFacingBuild-A-Broker:20Employee Your workers will face crises — a little preparation helps smooth things out. Your22 First Million Dollars: Don’t Get Frozen Keep yourself level headed so you can respond, not react. Benchmarks24 & Best PositivityPractices:Amidst Silence Keep the right attitude when no one comes knocking. Non-QM26 Wholesale34ResourcePrivate29ResourceLenderGuideLenderGuideLender Guide Non-QM48DataBank38Lender Directory Wholesale52 Lender BarbecueFacebook54DirectoryPrivateTechOriginatorDirectoryDirectoryLenderThoughts:ToCryFor STORYCOVER PAGE LovesNobody40NY One of the busiest mortgage markets in the U.S. is largely unpopular with the mortgage industry. nationalmortgageprofessional.com 2022SEPTEMBER Volume 14 Issue 9 CONTENTS nationalmortgageprofessional.com Flipping36 Has Gen31Z HomeWantsStillA freedomFinancial still comes first choice.ishomeownershipbutthesecond SOLD SALEFOR SALEFOR

BURSTING AT THE SEAMS In early August, we ran our southernmost edition of the California Mortgage Expo. This has always been a well-attended regional event, but this year that took on a new meaning. Approximately 1,000 LOs pointed their vehicles to the event venue in La Jolla. The session rooms were at capacity, and the exhibit hall was wall-to-wall. Despite the summer heat, and regardless of the wilting of their production pipelines, these mortgage originators stepped out to confront the challenges face-to-face. Maybe they came to network for new places to work (if so, they found plenty of people to network with). Maybe they came to get more in-depth knowledge of broker best practices, or about specific products like commercial loans or reverse mortgages. Or maybe they came to see the exhibit hall of opportunities, searching for new products to reach more of their potential customers. Whatever they came for, they came. They put their time on the line to better their performance. They brought their inquisitiveness and involvement. They made sure they checked out every option. Some wanted to be the best, some to stay there. Some wanted to open their wallets, others to open doorways to better techniques. Deprivation brings out innovation. Take away someone’s market, they’ll find a way to make a new one. It’s one reason we love hosting nearly 30 mortgage events each year. In every case, we get to literally stand with the loan originator community — frankly, more so than all other mortgage associations or collectives combined. It makes us proud to watch the audience work out their questions and concerns and begin to hone in on explosive new techniques, new approaches. And that is no languid summer daydreaming. It’s planning, it’s adjusting and it’s prepping to succeed. It’s hot.

Ifeditorial@ambizmedia.comtoyouwouldlikeadditional

4 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022

© 2022 American Business Media LLC. All rights reserved. National Mortgage Professional 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) info@ambizmedia.com719-1991 to

MULTIMEDIA SPECIALISTS Melissa Pianin MARKETING & EVENTS ASSOCIATE Kristie Woods-Lindig ONLINE ENGAGEMENT SPECIALIST Joel Berman FOUNDING PUBLISHER Lydia Griffin MARKETING INTERN

CONTRIBUTING WRITERS

Volume 14, Issue 9

his has been a particularly scorching summer. Much of the U.S. has been melting under record-setting heat. And figuratively, the mortgage industry has been in quite a bit of its own meltdown, too. Sprout Mortgage and First Guaranty are scorched earth now. LoanDepot turned its back on the wholesale and correspondent channels. Big players are putting up dismal performance numbers. And the Fed happily keeps jacking up rates. Which is why a sunny day in San Diego turned into a big surprise.

STAFF Vincent M. Valvo CEO, PUBLISHER, EDITOR-IN-CHIEF Beverly Bolnick ASSOCIATE PUBLISHER Christine Stuart EDITORIAL DIRECTOR David Krechevsky EDITOR Keith Griffin SENIOR EDITOR Mike Savino HEAD OF MULTIMEDIA Katie Jensen, Steven Goode, Douglas Page, Sarah Wolak STAFF 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

Rob Chrisman, Dave Hershman, Erica LaCentra, Nick Roberson, Lew Sichelman, Mary Kay Scully

2022SEPTEMBER

VINCENT M. VALVO

Submit your news

copies of National Mortgage Professional Call (860) 719-1991 or email info@ambizmedia.com www.ambizmedia.com

Publisher, Editor-in-Chief LETTER FROM THE PUBLISHER Cool Doings In Southern Cal

MORTGAGESOLUTIONSLENDINGFOR: Acra Lending is a dba of Citadel Servicing Corporation NMLS ID# 144549, Licensed under Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act license #41DBO-74196, Finance Lenders License # 60DB094450, and CA-DRE #01799059. For mortgage profes sionals only. This information is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations. Distribution to the general public is prohibited. Acra Lending is an equal opportunity lender. Rates, terms, and programs subject to change without notice. O er of credit subject to credit approval per applicable underwriting and program guidelines, applicant eligibility, and market conditions. Not all applicants may qualify. Not valid in the following states: AK, HI, IA, MA, MS, MO, NM, NY, ND, OH, RI, SD, and WV. SELF-EMPLOYED QUALIFY USING 3 Mo. Bank Statement 12/24 Mo. Bank Statement InvestorITIN Cash Flow / DSCR InterestINVESTORSOnly QUALIFY USING Investor Cash Flow / DSCR Business Purpose Fix & Flip / Multifamily Jumbo FOREIGNITINInterestATR-In-FullPrimeOnlyNATIONALS QUALIFY USING Foreign National Jumbo InvestorNon-QMCashFlow / DSCR ITIN LENDERMORTGAGETOPAMERICA’SPRIVATENoIncomeorEmploymentVeriﬁcationRequired* *Some exclusions apply. Contact for details. Short-termCondotelsRentals (AirBnb) Multifamily 5-29 Units Adult Care Facilities NOW LENDING ON: Call Us Today to Learn More! (888) 800-7661 sales@acralending.com | www.acralending.com 25531 Commercentre Drive, Suite 160, Lake Forest CA 92630SCAN QR CODE

HERSHMANDAVE

Ten Things An Originator Must Do In Order To Succeed

Those who are very successful know to take care of the basics

6 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 RECRUITING, TRAINING, AND MENTORING CORNER

So here is the Top 10:

BY DAVE HERSHMAN, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL A recent headline had mortgage applications down to their lowest in the past 22 years. Spoiler alert — the party is over. Those who survive will have to do something different to be successful. For many of us, that will mean returning to the basics we followed 10 to 20 years ago. For those newer, it means learning a new way of doing business. I am finding that managers across the country are at a loss as to how to direct these originators. I say — just go back to basics. So, I returned to an article I wrote 25 years ago, updated it and it turned out to be pretty much right on point. If you don’t have time to coach, email it to your loan officers who need thisDomessage.notexpect a marketing system to work if you don’t do the basic things necessary to become successful. As a matter of fact, if you do these things correctly you will need to spend much less money and energy on marketing. Why? Because marketing is not something you do — it is the way you think. Those who are very successful take care of the basics. I invite you to see if you have taken care of these following ten things. And if you have not — do not spend another dollar on marketing or advertising until you have taken care of them. I think most of these items are very, very simple. Of course, simple does not always mean easy to implement.

1. Communicate, communicate and communicate. How many times have you heard that you must call/email people back? You are probably sick of hearing it. Yet this is still the number one customer and real estate agent complaint. So, you are still not doing it as an industry. People ask how I did almost 600 in loans my FIRST 18 months in the industry. Well, it wasn’t because of experience or relationships at that point. I called them back quicker than anyone. And I don’t just mean call or email or text them back — but be proactive in your communication, which means communicate when you don’t have to and when it is not expected.

2. Identify your sphere of influence. Those who follow my teachings are introduced to an exercise that is designed to triple the size of the database of the typical originator.

3. Prioritize your sphere of influence. From my book of the same name, maximum synergy rule number three that some targets are more important than others. You cannot market the world. If you have a sphere of influence of 4,000 people, you can’t have lunch with all of them. The sphere should resemble a pyramid with the most important targets at the top. These would be your three to five potential synergy partners. At the bottom are people you have things in common with (such as they attend your church or are fellow alumni)—but you don’t know personally. Your marketing plan will revolve around this sphere and prioritization is the key.

When you get feedback from [customers] and it is negative, do everything in your power to turn it around.

5. Attend your settlements (or signings on the West Coast). Nothing is more important than delivering top-notch customer service. This is a very important event for your customer. If you are not there and questions/problems arise, everything you have done up to that point can be for naught. Even if everything is smooth, you are differentiating yourself from your competition in a positive way by showing up when most loan officers do not. And guess what? There are usually real estate agents at the table. Or would you rather cold call them?

8. When a prospect decides not to do a loan with you, call them one week to ten days afterwards. Do not call to ask if they have changed their mind. You can remind them that you ended the phone call by offering to do what you can to help them even if you are not doing the loan. Just ask them how it is going and offer your help again. If things are going badly (this will be the case one in three times), you may just recapture the prospect. By the way, one-in-three have done nothing, so the phone call may result in a chance to convert the prospect over fifty percent of the time. So, it is a phone call that can be well worth the effort. And even if they don’t close with you –this extra effort can turn them into a referral partner in the long run.

9. Make the words “thank you” part of your marketing plan. We don’t say these words often enough, we don’t say it in the right way, and we don’t make it part of the plan. Stop learning cheap closes and say thank you more often. In America, people are just not used to hearing that and doing so will exceed your customers’ expectations and differentiate yourself from your competition. AND IT IS FREE! 10. Become an expert in the industry. Stop trying to sell by convincing people to do business with you. You need to stop selling and start advising. That does not happen because you are using scripts and fancy words. It happens because you are an expert — and that takes a plan and time. If you are interested in an article of what it takes to become an expert in this industry — email me at dave@ hershmangroup.com

7. When you get feedback from them and it is negative, do everything in your power to turn it around. You can’t afford to have customers walk away unhappy. And when it is positive, use the opportunity to obtain a testimonial in writing. Social proof is a key of differentiation and if you are not using this tool you are selling with your hand tied behind your back. You should have a a quote from at least five-in-ten closings. And some of these quotes can come from your vendors. In addition, don’t forget to write testimonials to your real estate agents and other partners and even vendors.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 7

If you do not have a database that comprehensively identifies your sphere, why in the world would you be marketing to those you do not know? What sense does that make? None in my mind. The alternative promotes cold calling and to me — COLD CALLING IS STUPID. You should have no less than 3,000 to 5,000 people you either know or with which you have something very important in common.

6. Single out one segment of your sphere for a special phone call. Call everyone who closes a loan with you one week after settlement. And not to ask for a referral. Instead thank them for the opportunity to serve them, ask if there is anything else you can do for them and finally ask for feedback. They are expectingnotfollowup from a salesperson, so you will be exceeding their expectations. Exceeding expectations is another key to a successful business model.

Remember, if you do not go back and accomplish each of these, your marketing will not be as effective. Save your money and your energy and start building your business the right way. It is the ONLY WAY off the proverbial roller coaster and treadmill. n Senior Vice-President of Sales for Weichert Financial Services, Dave Hershman is the top author in this industry with seven books published as well as the founder of the OriginationPro Marketing System and the OriginationPro Mortgage School — the online choice for mortgage learning and marketing content. His site is www. OriginationPro.com and he can be reached at dave@hershmangroup.com

4. Everyone in your sphere should know what you do for a living and should receive value from you on a regular basis. This is exactly why I started writing a value-laden newsletter as a loan officer my third month in the business 35 years ago. It is why I supplied these to my loan officers when I became a head of production. It makes sense that the industry expert is going to provide the most value. That is exactly why my newsletters have never included recipes and handy homeowner hints.

While this used to be much more common in the world of job recruiting, think applicants not hearing back from companies they have applied for and recruiters getting ghosted by candidates, it is now becoming more commonplace throughout the professionalProfessionalworld.“ghosts” take all forms and identifying offenders is one way to prevent yourself from falling victim to the disappointment that can stem from being professionally ghosted. As previously mentioned, the professional recruiting space deals with its fair share of ghosting. However, there are other ghosts to be

icture this scenario. You attend an event and think you have hooked the perfect client. They are looking for your company’s exact services, they have a feasible timeline and are eager to start working with you, and everything feels like it’s falling perfectly into place. You exchange contact information, send a quick email onsite recapping your conversation and you both agree to discuss the next steps as soon as you have returned from the event. You hold up your end of the bargain, but all you get in return is radio silence. A week goes by, and then two, and suddenly you’re left wondering if you completely misread the situation. No, you were probably not given phony contact information. More this unsavory practice is starting to permeate into the professional world as well. Like in the dating world, professional ghosting is when a client or professional connection stops responding to any attempts at communication without warning.

| CONTRIBUTING

So, You’ve

8 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022

ProfessionallyBeenGhosted

LACENTRAERICA RECRUITING, TRAINING, AND MENTORING CORNER

This unsavory practice is starting to permeate into the professional world as well ERICA LACENTRA WRITER, NATIONAL MORTGAGE PROFESSIONAL

CONFRONTING YOUR GHOSTS

DON’T BE HAUNTED

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 9

Anytime time and effort are put into a professional or personal relationship only to be ignored without warning, there are bound to be bad feelings. So, what can you do when you think you are being ghosted to hopefully try to salvage communication, and if not, walk away with your feelings and your reputation intact?

If you start getting that sinking feeling that your emails and phone calls are falling on deaf ears and you’re being ghosted, it’s easy to immediately think the worst. However, the best thing to do is plan out a course of action to reach out to the person you think is ghosting you and give yourself a firm timeline where you will attempt outreach before you finally move on and cut your losses. Try different forms of communication when you reach out to your “ghost” to give them the benefit of the doubt that maybe your email is getting lost in an overflowing inbox, or they missed your call because they were out of the office. Be concise in your communication in terms of why you’re reaching out and the best time they can follow up with you to ensure you can connect if they are indeed interested. If at all possible, try to get face time with the individual that is ducking you. For example, if you normally email, try to set a video call with them. If it is a co-worker that has stopped answering you and you work in the same office, pop over to their desk for a face-to-face conversation. If after trying different methods of communication you still don’t hear back, this will make it very apparent that you’re being ghosted.

There is also the ghosting co-worker or employee. This is a colleague that you may be working on a project with and suddenly they ignore your requests for updates and stop responding to any communication regarding deadlines on the project. It’s hard to say why it happens. Your colleague might want to take the project in another direction and isn’t sure how to tell you. They may get busy with other projects and don’t have the bandwidth to devote time or attention to this project anymore or they simply want to leave the workload on your shoulders, but whatever the reason may be, your co-worker has gone dark and you’re left trying to pick up the Whilepieces.thispractice may be happening more often, and ghosts may be lurking in your professional network, it does not make it any less jarring when you are on the receiving end. This sudden drop in communication out of the blue typically leaves the ghosted feeling confused, annoyed, hurt, and a whole host of other emotions, and for good reason.

mindful of as well such as the potential client or partner ghost. This is the ghostly prospect that seems like the perfect opportunity to close your next sale or develop a new partnership, where you put in a tremendous amount of effort to seal the deal, and in the eleventh hour, they seem to fall off the face of the earth. No amount of calling or email can seem to reach them, and all that work was for nothing.

If that is indeed the case, your first instinct may be to bad-mouth the person that has left you high and dry and complain to everyone you know. However, it’s important to stay professional. This person may have shown their true colors but considering you never know who you may end up working with in the future or who that person is connected to. Be the bigger person and move forward without burning that bridge. You probably are not the first person they have ghosted and you probably won’t be the last and their reputation will eventually catch up with them. So do everything you can to walk away with your head held high.

It’s often so hard to say for sure why someone professionally ghosts someone. Usually, it’s not even done to be cruel, but because they don’t want to cause confrontation, so they simply quietly remove themselves from the situation. Yes, it is frustrating when it happens to you, but it shouldn’t be takenNowpersonally.thatyouknow that ghosts may be lurking in your network, once they strike, stick to a plan, handle them with professionalism and if they continue to stay silent, move forward rather than dwelling on what could have been. It will save you a lot of time and aggravation so you can focus your efforts on the next big opportunity. n Erica LaCentra is chief marketing officer for RCN Capital.

Professional ‘ghosts’ take all forms and identifying offenders is one way to prevent yourself from falling victim to the disappointment that can stem from being professionally ghosted.

BY LEW SICHELMAN, MORTGAGE

The Redfin analysis found that more people have been moving into than out of those counties with the largest share of homes at high risk from natural disasters. Some aren’t aware of the potential for disaster, but others don’t give a fig. “House hunters from out of town ask about climate change because they’re very concerned about flooding, but most of them don’t change their minds,” says Miami Redfin agent Cristina Llanos. “They hear horror stories of hurricanes, but generally still move forward. People want to talk about it but it typically doesn’t make or break their decision.”

10 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 SICHELMANLEW RECRUITING, TRAINING, AND MENTORING CORNER Risky Business

Financial system needs to be more resilient in face of disasters

PROFESSIONAL acation home buyers, it seems, are following the advice of Admiral David Farragut, who is credited with saying “Damn the torpedoes, full speed ahead” during the Civil War Battle of Mobile Bay. Historians doubt that Farragut actually said those words when he ordered his fleet into a harbor awash with mines, which were called torpedoes back in the day. But that’s not the point, at least not here. The point, or rather the question, is who owns all the risk when buyers ignore all those warnings about climate change and move into regions or even neighborhoods susceptible to floods, wildfire, hurricanes and other natural disasters?Anewreport from the Mortgage Bankers Association tries to answer that question. We’ll get to how the MBA sees it in a moment. First, a look at the rush to risky places, as reported by the Redfin real estate brokerage firm, which found that second-home purchases rose some 40% in spots at higher risk for floods, severe storms or excessive heat over the past two years.

CONTRIBUTING WRITER, NATIONAL

HEAT TOP RISK Breaking it down, the brokerage found that heat is the most common risk facing second-home buyers. More than nine out of 10 second homes purchased in the past two years face high heat risk. Next comes high storm risk, which hovers over more than three-quarters of second homes bought in the past two years. One in four face high flood risk, while about one in five face high fire risk and high drought risk. Not only have vacation home buyers (and those who invest in them) taken up residence in these hot environmental locations, so has severe weather — to the tune of roughly $121.4 billion in property damage over the last five years, reports ValuePenguin. Flash floods caused $49.1 billion in property damages, said the LendingTree-owned consumer advice website. That’s followed by hurricanes, which caused

HOMEOWNER RESPONSIBILITY

CONTINUED ON PAGE 12

Even when owners have insurance, they may not have enough to keep from digging into their wallets for more than their deductibles. “The only scenario where an insurer won’t cover a homeowner or business for extreme weather damage is when they do not have sufficient insurance coverage,” says ValuePenguin’s Divya Sangameshwar. “It is the homeowners’/business owners’ responsibility to know what their level of coverage is, the kinds of perils their existing policy covers, and purchase additional coverage to cover perils that aren’t included in their basic policy.” Beyond owners and their insurers, though, others in the housing continuum also share some of the hazard, according to the MBA’s report, “Who Owns Climate Risk in the U.S. Real Estate Market.” And according to the 21-page paper, “the ways in which responsibility ... is distributed among the various market players is heavily dependent on whether the property owners do or do not have a mortgage and whether that mortgage is held in a lender’s portfolio or is sold into the secondary market.” Before going further, I know there are some who don’t believe in climate change. But let’s assume for the purposes of this treatise that it is real. And if that’s the case, the MBA points out, the mortgage market “serves as a de facto insurance coverage.”

GOING COMMANDO?

The latest from CoreLogic shows that nearly 7.8 million houses — primary or otherwise — are at risk of storm surge damage. Their reconstructioncombined cost: 33trillion.$2.3Worse,millionhouses with nearly $10.5 trillion in construction costs are at risk winds.hurricane-forceof Obviously, owners of houses and payingthepropertiesmulti-family“bearburden”offorthe risks, according to the MBA’s whiteaforementionedpaper (https:// org/wp-content/newslink.mba. meaningperhapspdf).Climate-Change-2022-White-Paper.uploads/2022/07/24055-Research-So,ofcourse,dotheirinsurers.Butoneinfourownersself-insure,theyhavenoinsuranceother than their own bank accounts.

When a property is held in the lender’s portfolio, the report outlines, owners still retain a portion of the physical risk. But some of the transitional risk equal to the loan amount shifts to the lender in a second position behind the borrower. Moreover, the servicer “must establish policies and procedures to monitor and act” on insurance issues should they arise. Consequently, servicers assume some operational risk.

While owners take on all the physical risk, mortgagors take on some of the transition risk of moving to a lower-carbon economy as well as counterparty and operational risk, according to authors Jamie Woodwell, Mike Fratantoni and Edward Seiler, all of whom are MBA staffers. And if the loan is sold to the government sponsored enterprises, insured by the Federal Housing Administration, securitized by the Government National Mortgage Association or finds its way into a private-label security, transition and counterparty risk transfers to those entities. Operational risk, on the other hand, generally remains with the servicer. (Woodwell is the MBA’s vice president of research; Fratatnoni, its chief economist, and Seiler, executive director of its Research Institute for Housing America.)

Owners of the 30 million or so owner-occupied properties without a mortgage make their own insurance decisions. But when they go commando, Uncle Sam often comes to their rescue.

$36.1 billion in damages, and tornadoes, which caused $7.1 billion in damages. That’s a lot of shekels. But that pales in comparison to what home owners, insurers and mortgage stand to lose should the next big one hit.

At the same time, some 48 million owners have some form of mortgage which requires them to maintain insurance. If they don’t, lenders have the authority to “force-place” coverage.

When the loan moves into the secondary market — some 36 million are sold or securitized — the physical risks don’t change, nor do the transition

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 11

Owners of the 30 million or so owneroccupied properties without a mortgage make their own insurance decisions. But when they go commando, Uncle Sam often comes to their rescue, in some way or fashion, to ease the burden of climate-related disasters with grants, loans and other form of support. Even when they have insurance, though, owners could be left high and dry if their insurer pulls out of the market, as some have done recently in Florida, or goes under, as a few have in Florida as well. And then there’s increased risk of higher taxes and changes in housing values, all of which also is assumed by the owner.

Because, the authors point out, “regulators will need to pay increased attention” to what many believe — sorry, naysayers — lies ahead with respect to climate change. Their report, they say, has “broad implications for where risk management and regulation can have the most significant impact.” As they see it, the mortgage market “plays a de facto form of insurance ... taking on the risk from an attachment point of the owner’s equity in the property through to a detachment point of the property’s value.” And they think regulators should “lean into” the fact that the market has been able to distribute that risk across multipleLookingparties.ahead with respect to credit risk, the MBA staffers suggest that the best regulatory approach “may simply be to ensure that lenders are doing the blocking and tackling their businesses require.” When it comes to market risk, they warn, rule makers must avoid anything that suddenly impairs a property’s value. And as far as operational risk is concerned, they argue that regulators should “help to lead” industry-wide discussion about how to optimize relief efforts for borrowers. Above perhaps,all,the paper implores regulators to “push for efforts that will help the (financial) system as a whole become more resilient in the face of disasters.” n Lew Sichelman is a contributing writer to National Mortgage Professional magazine. He has been covering the housing and mortgage sectors for 52 years. His syndicated column appears in major newspapers throughout the country. He also has been real estate editor at two major Washington, D.C., dailies and spent 30 years on the staff of National Mortgage News, formerly National Thrift News.

RISKY BUSINESS CONTINUED FROM PAGE 11

DE FACTO INSURANCE

RECRUITING, TRAINING, AND MENTORING CORNER risk. But the lender sheds its share of the risk it would have otherwise assumed had it held on to the mortgage, and the servicer continues to own some operational risk withassociatedmonitoring and managing the risk taken on by others.

Why the need to lay this all out?

Visit JoinAPM.com or contact DUSTIN BLOCK at 303.378.3166 ©2022 American Pacific Mortgage Corporation | NMLS #1850. All information contained herein is intended for mortgage professionals only and not for public distribution. YOU WANT TO PARTNER WITH A COMPANY THAT’S INCHANGINGROCK-SOLIDMARKETA IS IN OUR DNAGrowth WHAT ABOUT YOURS? Discover why APM is experiencing record expansion in a changing market.

Mike Simonsen

Key Stats To Watch In A Changing Real Estate Market Keep an eye on listing price reductions to predict prices

14 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 BY MIKE SIMONSEN, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL T

he world’s financial markets have been in turmoil. Stock markets are way down from their peak; interest rates are rising. The big question on many people’s minds is: will home prices fall? What do we know about the direction of the market? What can the data show us? Here are the key stats to watch: 1. PRICE REDUCTIONS

An important gauge for the direction of the market is the percentage of homes on the market with price reductions. This stat is now climbing more rapidly than it has any time since we’ve been tracking it. This spring, only 20% of homes on the market had price reductions. For perspective, we normally see about 35% of the homes that get listed take a price cut. When the market is hot, fewer homes take a cut. You know, “I overpriced my home and I got my offers, so I don’t have to take a price

3. RE-LISTS

Here’s another signal to watch as a leading indicator for the future: the percent of homes that are re-listed. These homes were on the market and with no offers the listing expired, or maybe they went into contract and the contract fell through, so now they’re getting re-listed. My expectation is that as buyer demand weakens, and as affordable credit availability weakens, you’ll have more transactions fail, and we’re going to see re-lists climbing. At only 1.6% of the market, re-lists are still relatively low, even though they’re higher than any recent July. If relists climb substantially, that’s also a bearish signal for future transaction prices. As buyer asweakens,demandandaffordablecreditavailabilityweakens,you’llhavemoretransactionsfail,andwe’regoingtoseere-listsclimbing.

2. IMMEDIATE SALES

CONTINUED ON PAGE 16

On the demand side, here at Altos Research we also track a stat we call “immediate sales,” which has been a defining characteristic of the pandemic boom of the last two years. These are homes that get listed and take offers and go into contract within hours, or just a couple of days. We still have immediate sales happening at a surprisingly high rate, but it’s decreasing. We currently have 18% of new listings going into contract immediately. Earlier in the year it was more like 33%, but that’s been falling very steadily every week since April. In late June, we had 86,000 or 87,000 homes that were newly listed that stayed on the market and didn’t sell immediately. This is the highest level we’ve seen since last year. That being said, immediate sales have held up better than expected. The quality homes that are priced well are still selling quickly. I expected these immediate sales to evaporate much more quickly. I think this is evidence of a lot of pent-up demand: buyers who’ve wanted to buy for the last couple years and maybe being out bid in the ferocious competition but are now finally getting their opportunity to buy. cut.” In 2020, we rolled into the pandemic, and people started buying everything in sight. And so, few price reductions had to happen. Then last year, the market accelerated into a frenzy, and there were fewer price reductions all the way into May … and even with seasonal increases, we have still been well below the 35% “normal” rate. Now, we’re shifting from this ultrafast market where nobody had to do a price cut, to one where if you’re overpriced, you’re going to sit on the market, and you’re going to have to cut yourThisprice.means sellers are going to see the price reductions number rise above 35% this month. Even though we’re back into normal range, to uninformed sellers, that feels really slow! If price reductions climb over 40%, that’s going to be a signal for little to no home price appreciation in 2023. Listing price reductions now mean lower prices on transactions that have yet to happen. Keep an eye on this one.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 15

16 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 Your Clients Deserve Options, Not Obstacles. No ad d-ons to pricing based on property type, credi t score, LTV o r transact io n type N o limits o n cash-outs1 (no seasoning) U p to 90%2 CLTV for loans up to $3.5 mill io n No FICO ® score (unless PM I loan) Available to LLCs Joseph Novi ello (718) AsNMLSjnoviello@ridgewoodbank.com240-4780ID#625762atrustedwholesalelender, we help independent mortgage brokers give borrowers more ﬂexibilit y while minimizing costs. 1. On primary residences. (LTVs apply). | 2. 1–2 family and condo purchases and rate and term refinances – primary residences Terms and conditions subject to change without notice. Loans subject to credit approval. | © 2022 Ridgewood Savings Bank. All rights reserved. Learn more ridgewoodbank.comat Bijan Farassat (917) 731-4870 bfaras sat@ridg ewoodbank.com NMLS ID# 646654

4. MARKET ACTION INDEX

KEY STATS CONTINUED FROM PAGE 15

The Market Action Index (MAI) is Altos’ proprietary tool to answer at a glance: “How’s the market?” It’s supply versus demand. And it works like a speedometer. When the Market Action Index is higher, that means supply is tighter and demand is high; as supply increases, or as demand starts to back off, that speedometer starts to cool down. Right now, the MAI is starting to tick down every month as inventory climbs, and as we see price reductions or re-lists growing. Here’s what the Market Action Index looks like over time. Each week is dropping very rapidly, from record high levels, although still because inventory remains well below normal, the market is still in sellers’ market conditions. For the current levels of inventory, we have sufficiently strong demand: homes are selling. Prices are holding up. And yet, the market is cooling, and the Market Action Index is dropping very quickly. The MAI hasn’t seen “buyer’s market” conditions in many years. But we could see those conditions soon. If you’d like to keep an eye on these signals every week, sign up for a free report at altosresearch.com. n Mike Simonsen is the founder and CEO of real estate analytics firm Altos Research, which has provided national and local real estate data to financial institutions, real estate professionals, and investors across the country for more than 15 years.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 17 ©2022 Unite Mortgage is a DBA of Home Mortgage Alliance Corporation (HMAC). 4 Hutton Centre Drive | Suite 500 | Santa Ana, CA 92707 800.900.7040. HMAC is an Equal Housing Lender. NMLS License # 1165808. www.nmlsconsumeraccess.org. 09.2022 800.777.1207 | unitemortgage.cominfo@unitemortgage.com Grow with Unite Mortgage! Committed to Making Wholesale Lending Simple. Let’s Unite & Grow Together! The news is in - Unite Mortgage is keeping our brokers’ business success in focus with our No Ratio and Foreign National programs. We’ve worked hard to position ourselves as a Non-QM Leader and our team is growing. All to benefit our brokers. Join with us, you’ll benefit too. PLUS - our Non-QM Loans Close Fast, 3 Weeks or Less! And we are a Price and Turn-Times Leader! aNo Ratio aForeign National aUnite Mortgage!

OCT 18 2022 Colorado’s top gathering for mortgage professionals returns to Denver on October 18, 2022. Don’t miss this exciting, informative event. NMP readers like you can attend for free by using the code NMPOCN. Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers reserve the right to determine final eligibility. www.comortgagesummit.com Produced ByTitle Sponsor ORIGINATORCONNECTNETWORK.COM NMLS RENEWAL CLASS OCT. 19

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 19 > Freddie announcedMac Jr.HermonstyneDennis is its new senior andpresidentvicechief compliance officer. > appointedMaeFanniehas Katie Jones as senior officer.resourceschiefpresidentviceandhuman > OrangeGrid, a namedsoftware,servicingofprovidermortgagehas BrosnanDenis as its president.new > FinancialGeneva has hired QueallyPatrick to run its Mass.,Rockland,newoffice. PEOPLE ON THE MOVE // SPONSORED BY BUILD A BROKER Plan Ahead For Long-Term Absences YOUR MILLIONFIRSTDOLLARS Don’t React — Respond! BENCH MARKS & BEST PRACTICES Don’t Get Rocked If No One Answers CAREER TICKER: People On The Move HOW NMP’S MONTHLY SECTION OF HANDS-ON PRACTICAL ADVICE

If the past few years have taught ownersbusinesssmall anything, it’s the weatheredmediumthatofunpredictabilitylife.Assumingyoursmalltobusinessthe pandemic, you are aheadshoringconcernedunderstandablyaboutthingsupofthenext crisis. If you’re starting your own company, you’ll want to adopt a few tried-andtrue practices to guard against the unexpected.Youcansafeguard your company by sticking with a few simple practices. While the backup procedures presented below are not complicated, they are not automatic. All of them require diligence and follow-through. In the day-to-day hustle of providing products and services, it’s often all too easy to let these backup procedures slide. Given the stakes (and recent events), neglect is unwise. All of the practices listed below are preparatory. None of them will do you much good in an emergency. Instead, they help you keep your small business humming along smoothly as unanticipated events arise. As you implement these, keep asking yourself, “What’s the worst that could happen?” Do this without becoming morbid or panicky.

20 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 BUILD-A-BROKER > AdamsRebeccahas joined counsel.underwritingCompanyInsuranceNationalAgentsTitleas > FinancialGeneva has opened a new branch in Ill.,Estates,Hoffmanledby GonzalezJonathan. > Tenn.,Franklin,branchoftheannouncedMortgageWaterstoneopeninganewinledby David Gatheridge. > announcedLendArch KumarKarthikhas joined presidentexecutivecompanytheasviceand chief operating officer. PEOPLE ON THE MOVE // How To Cover For Employees Gone For An Extended Period Planning is important to avoid emergency responses BY TIFFANY DELMORE, SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE

1. PREPARE FOR THE UNEXPECTED THROUGH CROSS-TEAM COLLABORATION. No single individual should hold the “keys” to anything you need to keep your small business running smoothly … not even you! In our age of high-tech,

SPONSORED BY

Acra Lending is the leader in NonQM Wholesale and Correspondent lending programs. Offering a range of programs and services geared toward helping mortgage professionals and borrowers achieve their purchase and investment goals. We are committed to providing simplicity, consistency and an optimal customer sales@acralending.comacralending.comexperience.(888)800-7661

NON-QM LENDER RESOURCE GUIDE

LICENSED IN: AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

LICENSED IN: AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, ME, MD, MI, MN, MT, NE, NV, NH, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY Angel Oak Mortgage Solutions

MORTGAGENEWSNETWORK.COMprofessionalism.

Multi-channel mortgage leader with exceptional service and comprehensive mortgage solutions. When it comes to choosing your lending partner, there are many things to consider. Our products set the standard in the industry for innovation. Since that innovation is in our DNA, we will always be on the cutting edge of what matters most to you and your borrowers. At Arc Home, our priority is to provide the best customer experience from registration to closing, and we continue to invest in that philosophy every sales@archomeloans.combusiness.archomellc.comday.(844)851-3600

Acra Lending

Lake Forest, CA

Atlanta, GA We offer alternative mortgage solutions for originators throughout the country helping borrowers who don’t fit Agency guidelines. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.angeloakms.com(855)631-9943info@angeloakms.com

LICENSED IN: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY, DC and the District of Columbia

Arc Home LLC Mount Laurel, NJ

Mortgage News Network’s mission is to use the power of video and podcasts to compliment the written word and inform, educate, enable and empower mortgage professionals with the most relevant, up-to-date information and advances in the mortgage industry. It is our goal to offer worthwhile information to our viewers while delivering it with the utmost

And … Action!

info@deephavenmortgage.comdeephavenmortgage.comofficers.(800)983-0457

Redondo Beach, CA

GUIDE

Civic Financial Services

AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WY First National Bank of America East Lansing, MI With over 65 years of lending experience, First National Bank of America specializes in Non-QM loans, •nationwide.Alternative Income Documentation Options • 12 months only of income history • Self-Employed/1099 • ITIN or SSN • Recent Credit Events Our alternative mortgage solutions are designed to help people turn homeownership dreams into a reality in the Retail, Wholesale or Correspondent

Founded in 2012, Deephaven is a national, Non-Agency/Non-QM mortgage provider. A full-service innovator in the NonAgency/Non-QM mortgage space helping millions of Americans unable to qualify for a traditional, government-backed mortgage to achieve their dreams of homeownership. Available through both wholesale and correspondent channels, our differentiator is our borrower-centric culture and service delivery model. Particular strengths include our own in-house underwriting and collaborative teams that directly support our national network of independent mortgage brokers and loan

LICENSED IN: Continental U.S. Non-QM Lender Resource Guide cont’d. next pg. PRODUCTIONS OF AMERICAN BUSINESS MEDIA nationalmortgageprofessional.com/nationalmortgageprofessional.com/videopodcasts/principalnationalmortgageprofessional.com/podcasts/gated-communities

Equalwww.fnba.com/mortgagewww.fnba.com/correspondentwww.fnba.com/wholesaleVisit:spaceHousingLenderfnba.com/wholesale(800)400-5451requests@fnba.com

NON-QM RESOURCE

LICENSED IN: AL,

CIVIC delivers fast, honest, simple lending for real estate investors. Description of your products or CIVICservices.Financial Services is a private money lender, specializing in the financing of non-owner occupied residential investment properties.

LICENSED IN: AZ, CA, CO, FL, GA, HI, ID, IL, IN, LA, MD, MA, MI, MN, NV, NJ, NC, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WI

CIVIC provides Mortgage Brokers and Real Estate Investors with a fast and cost effective funding source for their real estate investment info@civicfs.com(877)civicfs.comneeds.472-4842

LENDER

Deephaven Mortgage Charlotte, North Carolina

PCF Wholesale

LICENSED IN: AL, AK, CA, CO, CT, DC, DE, FL, GA, IL, LA, ME, MD, MA, MI, MN, NV, NH, NJ, NM, NY, NC, OH, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI, WY

LENDER RESOURCE GUIDE

Global Integrity Finance LLC

LICENSED IN: AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, NV, NH, NJ, NM, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, See our

As a direct, private lender, Global Integrity Finance takes a commonsense approach to underwriting, with all approvals made in-house. We are dedicated to providing quick responses to time-sensitive loans, often times with the ability to close in as few as 3 business days. At Global Integrity Finance, we value referrals and our brokers are protected. We are committed to the highest level of customer service, because our success thrives in building

McKinney, Texas DSCR Rental NO DOC Loans

Road Trip! SEP 8 Great MortgageNorthwestExpo™ SEATTLE, WA NMLS RENEWAL CLASSJ oin Originator Connect Network™ as we traverse the country, bringing together hundreds of mortgage brokers, loan originators and bank and credit union lending officers, for an event full of education, networking and fun.

Tustin, CA Build your 2022 pipeline with PCFWholesale.com , the home of the EZ DSCR and Alt Choice Non QM Products. We make NonQM E-Z. Direct Wholesale Lender Licensed in 38 States. We love 1-4 and 5-8 unit properties. Ask about our Preferred Lender Program and our on time closing commitments to Marketing@pcfwholesale.compcfwholesale.comyou!(714)955-5700

toby@globalintegrityfinance.comglobalintegrityfinance.comrelationships.(214)548-5190

partial sample of upcoming events here, or visit our site for our full calendar at originatorconnectnetwork.com.

NON-QM

Non-QM suite of products was built around the idea that it doesn’t have to be complicated to finance a home. We have created a diverse selection of borrower friendly programs that are simple, innovative, and flexible. For more information on our Correspondent division, visit luxurymortgagecorrespondent.comwww.luxurymortgagewholesale.com(949)516-9710tpomarketing@luxurymortgage.com

LICENSED IN: AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WV, WI Luxury Mortgage Corp. Stamford, CT Non-QM, Wholesale, Delegated Correspondent, Non Delegated

TheCorrespondentSimpleAccess®

Investor

LICENSED IN: CT, DC, DE, FL, GA, IL, MD, MA, NH, NJ, NY, NC, OH, PA, RI, SC, TN, TX, VA Stratton Equities Pine Brook, NJ Stratton Equities is the leading Nationwide Direct Hard Money & NON-QM Lender that specializes in fast and flexible lending processes. Our Hard Money and Direct Private Money loan programs support the following investment projects: No Upfront fees! No Junk Fees! No Taxinfo@strattonequities.comReturns!strattonequities.com(800)962-6613 LICENSED IN: All States except for: AK, ND, NV, SD, UT Find the full list of Non-QM Lenders on page 48 Find the full list of Private Lenders on page 52 ORIGINATORCONNECTNETWORK.COM SEP 13 MortgageCalifornia Expo™ PASADENA, CA NMLS RENEWAL CLASS OCT 11 MortgageCalifornia Expo™ OAKLAND, CA NMLS RENEWAL CLASS • Fix and Flip • Soft Money Loans • Cash Out Refinance— • Fixed LoansCommercial • BridgeCommercialLoans • Bridge Loans • Stated VerificationNo-IncomeIncome/Loans • Rental Loans • BailoutForeclosureLoan • NO-DOC • Blanket Loans • Fixed ProgramsRental • Multi-Family Loan

New York, NY Ratio & Lite Doc — Owner Occupied & Our unique DevelopmentCommunityLoanprograms help historically excluded borrowers look beyond income documentation to help make homeownership dreams a reality. Quontic is exempt from Dodd Frank’s ATR requirements. This enables us to offer our unique Owner Occupied - No Ratio (no income stated & no DTI calculated) and Lite Doc (borrower prepared P&L) loans to credit-worthy borrowers. Quontic also offers a Fast Track underwriting Getprocess.started growing your business with Quontic sschnall@quonticbank.comquonticwholesale.comWholesale.(888)738-9016

PRIVATE LENDER RESOURCE GUIDE Lending West Hempstead, New York DOC Loans Alpha Tech Lending is a trusted direct lender, with over a combined 30 years of experience in the private lending sector. We offer a variety of loan programs for non-owner-occupied residences that are customizable to suit your real estate investment needs. From fix and flips, long term rental, new construction, commercial bridge, and more. We lend to both new and experienced real estate professionals throughout the country. We value long term relationships built on trust. Our brokers are info@alphatechlending.comalphatechlending.comprotected.(888)276-6565

Alpha Tech

DSCR Rental NO

LICENSED IN: All 50 U.S. States

NON-QM RESOURCELENDERGUIDEQuonticBank

NOV 8 2022 Texas’s top gathering for mortgage professionals returns to Houston on November 8, 2022. Don’t miss this exciting, informative event. NMP readers like you can attend for free by using the code NMPOCN. Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers reserve the right to determine final eligibility. www.txmortgageroundup.com Produced ByTitle Sponsor NMLS RENEWAL CLASS NOV. 9 ORIGINATORCONNECTNETWORK.COMTE XA S MORTGAGE ROUNDUP

Millennials and Gen Z prioritize financial freedom first and homeownership second

ConsumersToAccordingStillDreamAmericanTheIsAlive,GenZ CONTINUED ON PAGE 32

A recent survey by LendingTree also pointed out that first time homebuyers have multiple misconceptions about homeownership and affordability. National Mortgage Professional reported that around 80% of prospective firsttime homebuyers, out of 2,000 survey participants, are stressed about affording a down payment. 27% of those who have never owned a home say that down payments are the main barrier holding them back from homeownership.

Prabhakar Bhogaraju, executive vicepresident and the head of strategy & product development at FinLocker, said that both generations regarded financial freedom and owning a home one day as their two top priorities. Bhogaraju said that mortgage professionals should take notice of the median homeowner age rising due to spiking home prices and student debt, specifically with Gen Z consumers. The survey results indicate that student loan payments are the primary reason for delaying young people from buying homes.

In order to streamline the

younger generations, data shows that millennials and Gen Z are still in pursuit of property — just later in life. Also of note is that younger generations aren’t entirely digital. While they don’t want to be cold called, they do want to be able to talk to a human when needed.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 3131 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022 BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL

A s student debt rises, so does the median age of appearhomeownershiphomebuyers.AmericanWhilemayunpopularto

FinLocker, a data analyst that focuses on consumers’ financial data, recently partnered with students in the American Marketing Association’s group at the University of Southern California to survey millennials and Gen Z consumers on their financial habits. The survey was inspired by the National Association of Realtors’ 2022 study which identified that 43% of homebuyers were millennials and 2% of homebuyers were Gen Z buyers aged 18 to 22. Over a four-week period from midMarch to mid-April 2022, USC students interviewed millennials and Gen Z.The survey was designed to answer how the next generation of homebuyers manages their finances and how financial goals can be achieved by younger generations. More importantly, the data raises the question of how can mortgage professionals cater to a generation of young homebuyers?

homebuying process to young consumers, Bhogaraju recommends that professionals educate younger potential buyers on financial and mortgage literacy, as only one-third of survey respondents said they felt properly educated about the homebuying process. “Even though the main goal of millennial and Gen Z consumers is to be debt free, they should use buying a home as a vehicle to become [financially] free,” Bhogaraju said. “[Buying] a home is an investment.”

RAISED IN A DIGITAL AGE

Young homebuyers don’t want to settle their finances on paper anymore. Bhogaraju said that the survey found that Gen Z and millennials tend to do their banking and credit management online, leading him to predict that mortgage companies will do their best marketing on online platforms in order to reach younger clients. Granted, this generation recognizes online banking and documents as the norm already.

Rez’s opinion correlates with other Gen Z survey respondents that reiterate that social media may be the best way to reach younger clients. He also expressed that homebuying was his goal following graduation. “People don’t want to learn about big financial decisions from reading an article,’’ Rez said. “We value trust and relationships over pure information, especially regarding bigger life decisions.” n

GEN Z DREAMS CONTINUED FROM PAGE 31

The survey identified that Gen Z opted to check social media first to learn about personal finance. According to Bhogaraju, several apps, including YouTube, Instagram, TikTok and Facebook, are leading digital platforms for mortgage professionals to reach younger audiences, and potentially even winning over clients. “Younger users want bite-sized pieces of information to consume. They’re not going to listen to a long video drone about mortgages,” Bhogaraju said. “Emerging channels should incorporate [the] mortgage industry into consumer’s daily life as if it’s right next to gaming andWithentertainment.”themortgage industry constantly fluctuating, Bhogaraju predicts that Gen Z will be the most diverse set of homebuyers as minorities begin to buy homes and invest. “The growing Hispanic population will drive home buying growth,” he said. “With this information, it’s important that mortgage professionals learn the value systems of their clients.” Bhogaraju also mentioned that it is important to recognize the wealth and opportunity gaps between white and racial minority buyers. He also said that since the survey was mostly of affluent Californians, data may be limited on nationwide financial habits in young buyers. “Home price affordability will continue to be a constraint on buyers,” Bhogaraju said.

Charlie Rez, a USC Economics and Data Science student and FinLocker intern that participated in the study, reiterated that Gen Z “finds solace in talking to a real person” and more than anything wants transparency. Rez said that if he were buying a home, the last thing he would want is being approached out-of-the-blue by a mortgage professional. Rez said, “The best way to create a trusting relationship would be through apps like TikTok and YouTube, where communication between you and a client is easy and simple. A relationship can be built solely off the fact that at any given moment, someone could get an answer to their mortgage question by leaving a comment on your post or through a direct message.”

“Younger users want bite-sized pieces of information to consume. They’re not going to listen to a long video drone about mortgages.”

– Prabhakar Bhogaraju, executive vice-president and head of strategy & product development, FinLocker

APPROACHING BUYERS

32 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022

“Low home supply will also affect low to moderate incomes, which are predominantly minorities.”

LICENSED IN: AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, KS, MD, MI, NV, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, WA

Bio: FNBA is a portfolio lender with over 65 years of experience. We understand that in the Non-QM business, service makes all the difference. That’s why we are committed to providing you with the fastest turn times, exceptional service and loan programs that make growing your business fnba.com/mortgage-brokerseasy!

LICENSED IN: AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, ME, MD, MI, MN, MT, NE, NV, NH, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY Angel Oak Mortgage Solutions

34 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022

Change Wholesale Irvine CA Change Wholesale gives mortgage brokers an unfair advantage to close more loans, faster. Our CDFI certification from the U.S. Department of the Treasury allows us to offer proprietary programs that are tailored to meet the needs of commonly overlooked prime borrowers. Our flagship Community Mortgage requires no income, employment, or DTI documentation. Prime borrowers looking for their dream home or vacation getaway can get approved with just the first page of the bank statement.ChangeWholesale.com(949)255-6085info@changewholesale.com

First National Bank of America East Lansing, MI

Atlanta, GA Angel Oak Mortgage Solutions is the leader in the non-QM mortgage space. We offer alternative specialized mortgage solutions for brokers throughout the country helping borrowers who don’t fit conventional guidelines. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.angeloakms.com(855)631-9943info@angeloakms.com

LICENSED IN:, AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

LICENSED IN: All 50 U.S. States Find the full list of Wholesale Lenders on page 52

Acra Lending Lake Forest, CA Acra Lending is the leader in Non-QM Wholesale and Correspondent lending programs. Offering a range of programs and services geared toward helping mortgage professionals and borrowers achieve their purchase and investment goals. We are committed to providing simplicity, consistency and an optimal customer experience.acralending.com

WHOLESALE LENDER RESOURCE GUIDE ACC Mortgage Rockville, MD

ACC Mortgage is the oldest Non-QM lender that has never stopped lending in 22 years. We specialize in Bank Statement, ITIN, P&L, Foreign National and DSCR lending. Price, Product and Process are what make for Non-QM success. ACCMortgage.com

2022 CE IS NOWIS AVAILABLENOWAMBIZDISCOUNTUSECODE Would you like to know more about our corporate programs? Or are you a branch manager? Contact Us. VISIT : MORTGAGEEDUCATION.COM (317) 625-3287 TRAIN YOUR COMPANY CALL OR

However, Shirley said that although a housing shortage and spiking home prices will create chaos in the market, the flipping market will only use this to its advantage. He hinted at the market soon turning aggressive, saying “Flips will continue as they did in the past economic cycles, [but] people who own their homes now are not going to be as likely to sell and given the inventory shortages, the flip market will become more bullish.”

The state of the flipping market

Profits are down but house flipping numbers are still strong

HasHouseNot

FlippingFlopped SALEFOR 36 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022

ATTOM reported in February this year that although more people are flipping homes, they are making less of a profit. Parallel with ATTOM’s report, National Mortgage Professional also reported in December 2021 that home flipping profits dipped to their lowest market, experienced investors are still interested in home-flipping projects. Shirley says, “Given the current rate of inflation, supply chain issues, and material costs coupled with rising rates, there are fewer buyers who qualify and a much narrower profit margin overall despite inventory demands.”

significant market cycle changes are going to be more hesitant in an unclear path. This happened in post-2008. flipping profits are a low supply of existing homes for sale resulting in higher acquisition costs, global supply chain challenges laborwide-spreadandconstructionlaborshortages.Constructionshortages are nothing new, Russell explained, adding, operators“Experiencedhavecreated strong teams and considerable networks

PERFECT, BULLISH STORM

BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL

FORSALE

ome flipping is often romanticized and hyper-fictionalized, especially on HGTV shows like Flip or Flop and Good Bones. This sensationalized trend brought new entrants and investors to the flipping scene, each eager to make a profit. Behind the limelight, the current housing market is bringing wistful flipping aspirations to a halt. In 2021, home flipping hit an alltime high and was up over 25% from 2020, granted that the start of the pandemic slowed down construction.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 SOLD in their respective regions to mitigate this risk. Our borrowers typically have labor available, but it has become more expensive, particularly for certain trades. This dynamic usually impacts the flipping market. Russell says that rising rates have created challenges for many private lenders, with some significantly pulling back and some others exiting the space entirely. “It is more important than ever for real estate investors to align with reliable debt partners that have the financial capacity to weather this storm,” RussellCharlessaid.Weinraub, a professional flipper and owner of Handsome Homebuyer out of Long Island, N.Y., says that the last Fed hike rate dropped 5% in values and that he is underwriting at a 15% discount compared to the last rate hike. The market is currently one of the most competitive he’sWeinraub,seen. who is used to flipping between 70 and 110 houses per year for over six years, said that he has been buying less properties and will continue buying less in the next three to six months to flip due to the market’s adjusting period. “Sellers are still looking for top dollar,” Weinraub said. “But since [I am] discounting at 15%, I’m being blown out by other high-bidding investors due to institutional lending.” Weinraub’s anticipates, based on his past experience, his local market across the board, less money and lower prices plus factors,” he said. 5% but the cost of capital is up, which squeezes house profits.”

Both professionals anticipate labor markets and shortages leveling out, parallel with housing inventory demand beginning to soften. Last year, Freddie Mac reported a historically low housing inventory, unable to keep up with household demand. However, inventory this year is beginning to slowly bounce back as the buying pool shrinks. “It is also possible that we see some distress or default volume, although this is expected to be relatively muted

compared to the last significant housing downturn,” Russell said. “Ultimately, these dynamics may increase investor appetite to rehabilitate existing housing stock in certain markets while slowing transaction volume in others. Further, there may be certain markets that better support healthy fix & flip margins whereas other markets may be better served by a fix-to-rent strategy.”

Russell added, “Our view is that flipped inventory will slow down at least momentarily while the market sorts itself out. With margins at their slimmest in more than a decade and rising interest rates affecting how much buyers are willing to spend, the collateral underwrite is more important now than “Leveragingever.solid valuation processes and diligence that compares not only historical sales but also the current active and pending sales environment are crucial to mitigating risk during this time. That said, as professional flippers pull back, we are likely to see an uptick in starter homes and firsttime buyer acquisition again. It’s all part of the cycle.” n

“There’s less profits due to compressing across the board, less money and lower prices plus high building costs are all factors.”

THE FUTURE OF FLIP

– Charles professionalWeinraub,house flipper SOLD SALEFOR

38 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 MBA Economic Forecast July 18, 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 Percent Change, SAAR Real Gross Domestic Product 6.3 6.7 2.3 6.9 -1.6 0.4 1.7 1.9 1.7 1.5 1.5 1.5 5.5 0.6 1.5 1.5 Personal Consumption Expenditures 11.4 12.0 2.0 2.5 1.8 2.2 3.2 1.6 1.5 1.8 1.5 1.9 6.9 2.2 1.7 2.4 Business Fixed Investment 12.9 9.2 1.7 2.9 10.0 7.8 9.0 0.5 0.7 0.2 0.1 0.0 6.6 6.8 0.2 -0.4 Residential Investment 13.3 -11.7 -7.7 2.2 0.4 -10.5 -11.4 2.2 5.0 7.4 6.2 7.2 -1.5 -5.0 6.4 6.1 Govt. Consumption & Investment 4.2 -2.0 0.9 -2.6 -2.9 -3.3 -0.1 2.4 3.0 0.9 0.9 1.0 0.1 -1.0 1.5 1.0 Net Exports (Bil. Chain 2012$) -1033.0 -1048.4 -1112.3 -1139.5 -1311.0 -1270.4 -1341.3 -1350.5 -1339.0 -1339.3 -1339.3 -1352.0 -1083.3 -1318.3 -1342.4 -1435.6 Inventory Investment (Bil. Chain 2012$) -75.1 -143.3 -56.8 164.3 160.3 74.5 82.4 95.5 75.0 60.0 57.3 49.9 -27.7 103.2 60.5 41.0 Consumer Prices (YOY) 1.9 4.8 5.3 6.7 8.0 8.4 7.7 6.0 4.3 2.5 2.2 2.5 6.7 6.0 2.5 1.9 Percent Unemployment Rate 6.2 5.9 5.1 4.2 3.8 3.6 3.6 3.7 3.8 3.9 4.0 4.2 5.4 3.7 4.0 4.5 Federal Funds Rate 0.125 0.125 0.125 0.125 0.375 1.625 2.375 3.375 3.625 3.875 3.875 3.875 0.125 3.375 3.875 3.375 10-Year Treasury Yield 1.3 1.6 1.3 1.5 1.9 2.9 2.9 2.9 2.9 2.9 2.8 2.8 1.5 2.9 2.8 2.5 TheNotes:Fed Funds Rate forecast is shown as the mid point of the Fed Funds range at the end of the period. All data except interest rates are seasonally adjusted The 10-Year Treasury Yield is the average for the quarter, while the annual value is the Q4 value Forecast produced with the assistance of the Macroeconomic Advisers' model Copyright 2022 Mortgage Bankers Association. All rights reserved. THE HISTORICAL DATA AND PROJECTIONS ARE PROVIDED "AS IS" WITH NO WARRANTIES OF ANY KIND. 2021 2022 2023

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | DATABANK39

he iconic I “Love” NY campaign is one of the most successful, image-changing advertising campaigns ever. But sometimes the hype doesn’t necessarily match up with reality.

COVERSTORY

Such is the case with the mortgage business in the Empire State. Lenders there, if they aren’t ignoring New York all together, are more likely to have an “I Hate NY” snow globe on the desk.

One New York attorney, whose clients are in the lending industry, agreed that state agencies make it hard to break into the state’s mortgage industry.

The Empire State is a place many mortgage originators actively avoid I HATE NEW

40 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022

“Many (independent mortgage servicers) will not pursue licensing in New York. It’s just too much of an arduous process,” said Milner, who has been operating in the state for nearly three decades. “It’s a compilation of things regulatory and compliance. We speak to DFS (the state Department of Financial Services) all the time about this.”

All states, he said, have minimum educational requirements for obtaining a loan mortgage officer’s license. In most states once that is done and is submitted to the banking department, the wait time is 30 to 60 days. In New York it’s 4 to 6 months Milner also noted that in New York, loan officers are required to maintain a business office, with all the associated costs, and are prohibited from working out of their homes.

“New York is the most difficult state on the planet to do business in,” said Steven A. Milner, 73, founder and CEO of U.S. Mortgage Corp. and president of the New York Mortgage Bankers Association.Howbadis it? A prominent mortgage company recently got licensed to do business in New York after five years. Company officials didn’t want to comment. They didn’t want to comment on expanding into a market with mortgage balances of $10.93 trillion at the end of 2021, according to the New York Fed WHY? Milner, who was born in New York and has spent most of his life there, said there are a number of areas the state is not considered business-friendly, ranging from inefficiency and over-regulation, to lengthy licensing periods and unnecessary roadblocks.

BY STEVE GOODE, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL

NOT A LONE VOICE

Others have expressed frustration with operating in New York, but declined to give their names for interviews out of concerns that state regulators have long memories. Others declined to speak at all, voicing the same reason.

NEW LAWS AREN’T HELPING

The attorney was also sympathetic to the manpower and experience constraints at DFS where, he said, the best people are frequently transferred to other departments, leaving newer, inexperienced people to deal with complex issues. Despite their well-earned reputation for dragging out the process and piling on requirements not found in many other states, the attorney said DFS has a tough job.

CONTINUED ON PAGE 42

“It takes three years to get a banking license, assuming you get it,” the attorney said. “They’re very particular.” The attorney has stopped representing new clients looking to do business in New York. In the end they frequently lay blame with their legal counsel for delays and rejections followed by more delays and rejections from the department of financial services.

“There’s a big benefit, only from the point of barrier entry,” he said. “Of course, they’re not trying to give you the benefit.”

Steven A. Milner, founder and CEO of U.S. Mortgage Corp. and president of the New York Mortgage Bankers Association

The attorney said there’s a bright side to the difficulties of doing business in New York though, especially in the mortgage industry, where those already approved have a big advantage over those trying to get a foot in the door.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 41

Earlier this year the New York assembly and senate passed bills designed to reform the state’s

“At the end the clients are pissed at you,” he said. He also noted the plethora of lenders who do business in almost every state in the country, besides his own. “They’re licensed in 47 states, except North Dakota, South Dakota and New York,” the attorney quipped. (Seen those disclaimers where lenders say they’re licensed in 49 states? The outlier is usually New York.)

SILVER LINING

On a more serious note, the attorney said that constant delays, requests for more information and moving of the goal posts could lead some frustrated business people to engage in unethical or even illegal activity in order to close time-sensitive deals. “They create an incentive to do wrong,” he said.

“We’re going to have to assess the pricing of the secondary market,”

NEW YORK

“They are doing what they are supposed to be doing, but do they go too far?” he said. “It’s a very fine line.” DFS officials did not respond to requests for comment. Nor did the Senate and Assembly chairs of the New York legislature’s Commerce, Economic Development and Small Business standing committees.

– Steve Grable, New York attorney

I HATE NY

42 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022

CONTINUED FROM PAGE 41 mortgage foreclosure laws. Lawmakers said that the aim of the Foreclosure Abuse Prevention Act was to eliminate abusive and unlawful litigation tactics that had been adopted and pursued by lenders in mortgage foreclosure actions to manipulate the law and the courts to yield to expediency and the convenience of mortgage bankers and servicers. limitations period at will,” to the detriment of New York homeowners dealing with foreclosure actions.

CONTINUED ON PAGE 44

As a result, lawmakers said, courts throughout the state were bombarded with a flurry of motions made by lenders to reopen foreclosure cases that had been dismissed years ago on statute of limitations grounds. The court’s decision allowed lenders to voluntarily pause the six-year statute of limitations countdown on foreclosures and restart the process as long as it was done within six years. The result, according to lawmakers, was that foreclosure actions were no longer timebarred and countless homeowners were trapped “in a state of judicial purgatory with the fate of their homes suspended in incertitude.” Opponents of the bill countered that it would severely limit the mortgage holders right to reach the merits of a foreclosure claim and encourages borrowers to to delay foreclosure proceedings and ignore loss mitigation and debt restructuring

“It’s going to increase costs for small businesses because more compliance equals more risks and that always gets passed on to the borrower.”

Deephaven Mortgage LLC. All rights reserved. This material is intended solely for the use of licensed mortgage professionals. Distribution to consumers is strictly prohibited. Program and rates are subject to change without notice. Not available in all states. Terms subject to qualification. deephavenmortgage.com NMLSConsumerAccess.org MLS #958425 Disclosures & Licenses https://deephavenmortgage.com/disclosures-and-licenses/ deephavenmortgage.com The experts at Deephaven are leading the way. Top-performing Non-QM loan officers and brokers from coast-to-coast started with Deephaven’s phenomenal training and DIWY (Do it With You) application support services. It’s all you need to get out in front of the pack and stay there. To sign up for training or to learn more contact: info@deephavenmortgage.com Chasing Non-QM business is easier when you’re at the head of the pack. SCAN HERE TOUSCONTACTTODAY!

The law will require lenders — many of whom are non-traditional and cater to borrowers who don’t qualify for traditional forms of credit — to provide borrowers with “crystal-clear” documentation of all aspects of a loan they are taking out, including interest rates and total payout.

TAXES, TAXES, TAXES And then there’s the taxes. According to the Tax Foundation, a Washington D.C.-based think tank founded in 1937 to monitor tax and spending policies of government agencies, businesses that are in New York or thinking about moving there definitely aren’t feeling the love.According to the foundation’s 2022 State Business Tax Climate report, New York ranked 24th in corporate taxes, but overall was 49th in the country beating out only New Jersey. That’s because New York ranked 50th in individual taxes, 47th in property taxes, 42nd in sales taxes and 36th in unemployment insurance taxes.“New York has been trending in the wrong direction (on taxes) for a long time,” said Jared Walczak, vice president of state projects for the foundation. “Businesses aren’t necessarily looking for the lowest taxes, but they want balance.”

“We’re going to have to assess the pricing of the secondary market,” Milner said.

While he understands the need for transparency, Grable said, like most regulations, it will come with more costs to the lender. “It’s going to increase costs for small businesses because more compliance equals more risks and that always gets passed on to the borrower,” he said.

Walczak said taxes have always been a consideration for businesses, as well as individuals, but since the pandemic both have started to rethink if they need to be headquartered in, or physically work in, high cost areas like New York City. “New York policy makers have felt very safe for a very long time,” Walczak said, adding that to a certain extent the state and New York City will continue to be an economic powerhouse. But as other states increase competition, and more people leave as lawmakers last year raised taxes and introduced a new corporate tax for companies making over $5 million a year, Walczak said those policy makers should be concerned about the state’s trajectory. “It’s especially true now,” he said. n

44 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 I HATE NY CONTINUED FROM PAGE 42 legislation before she does. Milner is predicting that some borrowers will figure out a way to game the system with the help of lawyers who see a new revenue“What’sstream.going to happen is you’re going to see lawyers providing foreclosure delay services,” he said, adding that he’ll have to consider getting out of mortgage servicing, which makes up 25% to 30% of the company’s business, or charging more to offset the increased risk.

New York attorney Steve Grable, who specializes in small business and middle market lending, also pointed to another new law he expects to take effect in his state and many others now that California has finalized details of its consumer finance disclosure measure and is about to enact it.

46 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 The BEST Mortgage Expos … Period. Discover what other hard-working mortgage pros already know: Originator Connect Network™ produces mortgage expos like no other. California Mortgage Expo, Irvine, CA

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 | 47 ORIGINATORCONNECTNETWORK.COM Don’t miss out! Check our online calendar and join us at an OCN™ Mortgage Expo near you! W ith over 23 events in cities across the United States, OCN ™ is the nation’s largest producer of mortgage events. From our exhibits to our education sessions with top speakers to our networking after-parties, Originator Connect Network ™ produces the best Mortgage Expo events in the country — and the demand for these events continues to grow — allowing us to engage even more markets. Pictures are worth a thousand words, and these speak for themselves about our attendance and engagement. Ultimate Mortgage Expo. New Orleans Utah Mortgage Expo, Park City, UT Suncoast Mortgage Expo, Tampa, FL

First National Bank of America Non-QM Continental U.S. fnba.com/wholesale Global FinanceIntegrityLLC DSCR Rental NO DOC Loans

Arc Home LLC Multi-channel mortgage leader with exceptional service and comprehensive mortgage solutions.

Deephaven Mortgage Founded in 2012, Deephaven is a mortgageNon-Agency/Non-QMnational,provider.

Impac Mortgage Corp. Non-QM AL, AK, AZ, AR, CA, CO, CT, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI impacwholesale.com

Angel Oak Mortgage Solutions Angel Oak Mortgage Solutions is the leader in Non-QM.

MortgageLoanStream Non-QM / Jumbo AZ, CA, CO, CT, DE, DC, FL, GA, HI, IL, IN, KY, LA, ME, MD, MA, MI, MN, MT, NV, NH, NJ, NM, NC, OH, OK, OR, PA, RI, SC, TN, UT, VA, WA, WI loanstreamwholesale.com NON-QM LENDER

Finance of America Mortgage Flexible solutionsmortgagedesigned with unconventional borrowers in mind. All 50 states, Puerto Rico and the U.S. Virgin Islands FOAmortgage.com

AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, WY deephavenmortgage.com

Civic ServicesFinancial Civic delivers fast, honest, simple lending for real estate investors.

Acra Lending Non-QM / Jumbo AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, ME, MD, MI, MN, MT, NE, NV, NH, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY acralending.com

DIRECTORY CONTINUED ON PAGE 50

AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY, Puerto Rico, U.S. Virgin Islands angeloakms.com

AZ, CA, CO, FL, GA, HI, ID, IL, IN, LA, MD, MA, MI, MN, NV, NJ, NC, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WI civicfs.com

AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY business.archomellc.com

AREA OF FOCUS STATES

48 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 SPECIAL ADVERTISING SECTION: NON-QM LENDER DIRECTORY COMPANY

AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WV, WI globalintegrityfinance.com

LICENSCED WEBSITE

WithFunding from Start toFinish XEPLORETHEPOTENTIAL OF THERENOVATIONSPACE FIX AND FINANCINGFLIP

50 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 SPECIAL ADVERTISING SECTION: NON-QM LENDER DIRECTORY (CONT’D.) COMPANY AREA OF FOCUS STATES LICENSCED WEBSITE Luxury Mortgage Corp. Non-QM, CorrespondentNonDelegatedWholesale,Correspondent,Delegated AL, AK, CA, CO, CT, DC, DE, FL, GA, IL, LA, ME, MD, MA, MI, MN, NV, NH, NJ, NM, NY, NC, OH, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI, WY luxurymortgagewholesale.com PCF Wholesale Non QM Made EZ, DSCR and Alt Doc AL AK AZ AR CA CO CT DC DE FL GA ID IL IN IA KS KY LA ME MD MA MI MN NV NH NJ NM NC OH OK OR PA RI SC TN TX UT VA pcfwholesale.com Quontic Bank No Ratio & Lite Doc — Owner Occupied & Investor All 50 U.S. States quonticwholesale.com Stratton Equities Nationwide Direct Hard Money & NON-QM Lender All States except for: Utah, North Dakota, South Dakota, Arkansas, Nevada strattonequities.com Verus CapitalMortgage Full-service correspondent investor offering residential Non-QM and investor rental programs Continental U.S. verusmc.com Open and operate your brokerage with confidence. Starting a business doesn’t have to be daunting. Build-A-Broker is a halfday bootcamp designed to help you establish the solid foundation needed to launch your business, or streamline and strengthen your existing one. WWW.BUILDABROKER.COM

Change Lending, LLC dba Change Wholesale. NMLS ID # 1839. Headquartered at 16845 Von Karman Avenue, Suite 200, Irvine, CA 92606. AZ: Arizona Mortgage Banker’s License # 0925326; CA Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act and Consumer Finance Lender’s Law; GA: Georgia Residential Mortgage License # 48010. For a list of other state licensed visit www.changewhole sale.com/licensing. To verify licenses, visit www.nmlsconsumeraccess.org. All loans must meet current underwriting guidelines which are subject to change without notice. This information is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations. CHANGE WHOLESALE AND ITS LOAN PRODUCTS ARE NOT SPONSORED OR ENDORSED OR BEING OFFERED BY THE U.S. TREASURY DEPARTMENT OR ANY OTHER GOVERNMENT AGENCY. CLOSE MORE. CLOSE FASTER. CLOSE THE PRIME LOANS THAT CAN’T.COMPETITORSYOUR

The Change Company has a range of products as diverse as your borrowers to help you serve more people than your competitors. As a CDFI, we create our own portfolio of products and guidelines that are exempt from complex underwriting rules and regulatory restrictions. Instead, we make smart credit decisions and use leading-edge technology to increase the number of loans you can close. There are no overlays of any kind, and no headaches caused by the stuff that makes your underwriter feel good but just isn’t necessary. Start closing more loans, faster at ChangeWholesale.com

ChangeWholesale.com First National Bank of America Non- QM All 50 U.S. States fnba.com/mortgage-brokers SPECIAL ADVERTISING SECTION: WHOLESALE LENDER DIRECTORYSPECIAL ADVERTISING SECTION: WHOLESALE LENDER DIRECTORY

52 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022 SPECIAL ADVERTISING SECTION: ORIGINATOR TECH DIRECTORY SPECIAL ADVERTISING SECTION: PRIVATE LENDER DIRECTORY COMPANY AREA OF FOCUS WEBSITE Calyx Loan Origination Software Solutions calyxsoftware.com Capacity AI-powered mortgage support automation platform that connects your entire tech-stack. capacity.com FileInvite: Document Collection on Autopilot Automated document collection and client portal for workflow productivity. fileinvite.com Lender Price Most Advanced Mortgage Pricing & Underwriting Engine On The Market Company lenderprice.com MonitorBase Customer Intelligence monitorbase.com COMPANY AREA OF FOCUS WEBSITE Alpha Tech Lending Private Lending, Non-QM alphatechlending.com Patch Lending Private Lending for Real Estate Investment Properties patchlending.com Stratton Equities Nationwide Direct Hard Money & NON-QM Lender strattonequities.com COMPANY SPECIALTY/NICHE STATES LICENSCED WEBSITE ACC Mortgage Non-QM AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, KS, MD, MI, NV, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, WA ACCMortgage.com Acra Lending Non-QM / Jumbo AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, ME, MD, MI, MN, MT, NE, NV, NH, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY acralending.com

Change Wholesale Helping mortgage brokers close more

Angel Non-QM, Non-Agency AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY, DC angeloakms.com loans, faster. AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Oak Mortgage Solutions

AL,

JAN 12–13 2023 New England’s top gathering for mortgage professionals returns to Connecticut on January 12–13, 2023. Don’t miss this exciting, informative event. NMP readers like you can attend for free by using the code NMPOCN. Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers reserve the right to determine final eligibility. www.nemortgageexpo.com Produced ByTitle Sponsor ORIGINATORCONNECTNETWORK.COMNEWMORTGAGENGLANDTHEE

• • •

Feeling kind of bad right now. I barbecued tri-tip last night, and it turned out wonderful. One might say even amazing! No, I’m not crying from happiness, that’s just smoke in my eyes. What I really feel bad about though, is no matter how hard they try, none of my neighbors’ barbecue will ever be even remotely close to this. Oh, they will try to pull off some good barbecue, but it just won’t be the same. Their families will say, why doesn’t your barbecue smell like Nick’s barbecue? Why isn’t your tri-tip as big as Nick’s tri-tip? Why doesn’t your tri-tip make people cry with tears of joy like Nick’s does? Very sad indeed.

54 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | SEPTEMBER 2022

• • • People in Dubai don’t like The Flintstones, but people in Abu Dhabi do!

Don’t Tri-Tip To Keep Up With Nick

I could hit every note of the Bee Gees Stayin Alive. I even did a bit of John Travolta’s strut.

• • • That awkward moment when you get in the van and there is no candy.

I tried to follow my dreams. Now I have multiple restraining orders. n

FACEBOOK THOUGHTS

Perhaps, just perhaps, he should have paid the same level of attention to the zipper on his pants.

To see more by Nick, just go www.facebook.com/nickrobersonto

ROBERSONNICK Nick Roberson

• • • Savannah brought me a drink from Starbucks this morning. “Hey dad! I brought you a treat.” I asked, “Is there rum in it? “ She said, “No dad, it’s from Starbucks.” I replied, “We’ve talked about this. Don’t call a drink a treat if there’s no rum in it.” Savannah said, “So you don’t want it?” I said, “Thank you for the drink. I really appreciate it. Could you hand dad the bottle of rum on your way out of my office, please.” Savannah just rolled her eyes and walked away. I yelled, “You know grabbing the bottle of rum would have taken a lot less effort than that massive eye roll you just gave me!”

Nick Roberson is a long-time mortgage industry veteran and a board member of the California Association of Mortgage Professionals. He’s a forthcoming and giving guy, who shares his … unique … perspective on work and life on his Facebook account. Here are some of Nick’s FB thoughts this month:

There’s nothing quite like the hustle and bustle of an airport full of business travelers. It was so nice to be out and traveling again. My last trip really reminded me of how much I loved the business trips. People were all dressed up, talking on their phones, and hurrying to catch their flights. Out of all of the busy travelers, one stood out amongst the rest. An extremely well-dressed man was walking proudly back and forth in the gate area, loudly speaking to a client on his phone. He was clearly resolving some sort of issue. I truly appreciated the great detail he was using as he communicated with his customer.

I forgot the number 1 rule when playing volleyball with Savannah. Never turn your back on Savannah when the ball is still in the air. Lesson learned … again.•••

• • • Savannah and I were getting in a little exercise tonight via some volleyball drills. She was practicing some hitting and I was attempting to receive them and bump the ball back over. I had just sent a ball over the net when a neighbor shouted, hello. I turned my head, smiled, and gave a wave. Suddenly I heard the unmistakable sound of Savannah hitting the ball. Apparently, she was not on the same page as me regarding greeting the neighbor. Before I could even respond the ball struck my body with tremendous force. I won’t say where the ball hit me, but I can tell you that for the first time in my life

• • • What do fish say when they hit a concrete wall? Dam!

Attend for free,* use NMPFREEcode: 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. ORIGINATORCONNECTNETWORK.COM 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 SEP 8 Great Northwest Mortgage Expo™ SEATTLE, WA NMLS RENEWAL CLASS OCT 18 Colorado Mortgage Summit™ DENVER, CO NMLS RENEWAL CLASS SEP 13 California Mortgage Expo™ PASADENA, CA NMLS RENEWAL CLASS NOV 8 Texas Mortgage Roundup™ HOUSTON, TX NMLS RENEWAL CLASS OCT 11 California Mortgage Expo™ OAKLAND, CA NMLS RENEWAL CLASS DEC 13 OCN Mortgage Holiday Party IRVINE, CA

The