NOVEMBER 2023
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NOVEMBER 2023
Vol. 15, Issue 11 $20.00
FIND A REALTOR WHO WON’T
GHOST YOU ITIN LOANS: THE HIDDEN WORLD OF BORROWERS END YOUR WORKAHOLIC 24/7 LIFESTYLE COMPLAINERS CAN’T WHINE IF YOU DON’T LISTEN
15 YEARS LATER:
NMLS MAKES BIG MOVES BE A WINNER LIKE WINNIE THE POOH SPECIAL AWARD SECTION
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NOVEMBER 2023
Volume 15 Issue 11
CONTENTS
nationalmortgageprofessional.com 24 My Best Deal
Unrelenting efforts kept a disabled vet in his home.
26 The ITIN Solution
How to fill your pipeline with foreign clients.
30 Originator Tech Resource Guide Wholesale Lender Resource Guide 32 Feeling At Ease
COVER STORY PAGE 58
How loan originators can help clients stomp roadblocks.
Smooth Closings
36 Data Bank
That’s just one thing real estate agents seek from LOs.
38 The Wisdom Of Winnie
4 From History Comes Hope Dark lessons from the ‘80s prove there will be light.
6 The Rookie Roster
Look to alternative backgrounds for successful hiring.
8 Don’t Let PTO Go MIA It’s not necessary to be always working.
10 Unforgiving Debt
Offer borrowers opportunity to consolidate school loans into mortgages.
14 Non-QM Resource Guide AMC Resource Guide
Tales from a children’s classic for career success.
15 People on the Move
42 A New Attitude
See who the movers and shakers are in the mortgage industry.
Change your mindset to close loans in new sectors.
46 The Turbulent Teens
16 Build-A-Broker: How To Thank Servicemembers
NMLS embarks on a new path as it turns 15.
50 Don’t Burn Your Life Down
LOs need strict adherence to military member rules.
20 Your First Million Dollars: Shed The Whiners
Non-stop hustling leads eventually to failure, not success, for LOs.
Move on from those with negative energy.
68 Non-QM Lender Directory
22 Benchmarks & Best Practices: Navigating Roadblocks
69 Wholesale Lender Directory
Basic financial literacy helps clients overcome hurdles.
Originator Tech Directory AMC Directory 70 Facebook Thoughts: Meeting inside The Matrix
SPECIAL AWARDS SECTION PAGE 60
Best Military Lenders
A salute to those lenders who go above and beyond to serve military members and veterans.
PAGE 66
Best Military Originators
Accolades for originators who best serve the heroes who serve us in the military.
nationalmortgageprofessional.com
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
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NOVEMBER 2023
S TA F F
Vincent M. Valvo
CEO, PUBLISHER, EDITOR-IN-CHIEF
Beverly Bolnick
ASSOCIATE PUBLISHER
Volume 15, Issue 11 LETTER FROM THE PUBLISHER
The Old Road Home
T
here are some economists who are saying they don’t see a real estate meltdown like we had in the 2007–2012 Great Recession. Instead, they say, the better analogy is to what happened in the 1980s.
Then, our economy had overheated in the early part of the decade, and to tame inflation in the latter half, Fed Chair Paul Volker started goosing up interest rates (sound familiar?). By the late 1980s, mortgage rates had topped out at just over 18%. And still, the average home price in the U.S. kept climbing. The numbers are a little wonky for a direct comparison to today. Median home prices in the late 1980s were about a quarter of what they were today, yet average wages were also less. The overall cost burden of buying a home then, adjusted for inflation, was slightly better than today. But those 18% rates were not good for mortgage originations. Nor are today’s rates kissing the 8% mark, and median home prices that continue to rise. Clearly, the market was terrible for home sales and mortgage lending then as it is now. So why the history lesson? Merely to offer hope and experience. Those astronomical rates did eventually recede. The mortgage industry did survive and flourished in the following years. The number of homes sold, and refinanced, did pick up steam despite there being no real collapse in average home prices nationally. It’s hard to be in the middle of this interest rate morass and not be dejected. But it’s good to have history on our side, illustrating that even when things look egregiously dark, there will be a light. It may be too small to see right now, but it’s there, and it’s on its way to you. That’s what you’ll find in this issue: tales of the light, stories of why holding on will be rewarded, articles that articulate strategies and doctrines to see you through. In the 1980s, this looked like a lost industry. But it wasn’t lost; it had merely meandered for a while before finding its way to its economic destination. It’s good to remember even today, there is a path, and we’re on it — long though it may be.
Christine Stuart NEWS DIRECTOR
Keith Griffin
SENIOR EDITOR
Erica Drzewiecki, Katie Jensen, Ryan Kingsley, Sarah Wolak STAFF WRITERS
Rob Chrisman, Dave Hershman, Erica LaCentra, Harvey Mackay, Lew Sichelman, Mary Kay Scully CONTRIBUTING WRITERS
Regina Morgan
ADVERTISING SALES EXECUTIVE
Nicole Coughlin
ADVERTISING ASSOCIATE
Alison Valvo
DIRECTOR OF STRATEGIC GROWTH
Julie Carmichael
PROJECT MANAGER
Meghan Hogan
DESIGN MANAGER
Stacy Murray, Christopher Wallace GRAPHIC DESIGN MANAGERS
Navindra Persaud
DIRECTOR OF EVENTS
William Valvo
UX DESIGN DIRECTOR
Andrew Berman
HEAD OF CUSTOMER OUTREACH AND ENGAGEMENT
Matthew Mullins
MULTIMEDIA SPECIALIST
Melissa Pianin
MARKETING & EVENTS ASSOCIATE
Kristie Woods-Lindig
ONLINE ENGAGEMENT SPECIALIST
Joel Berman
FOUNDING PUBLISHER Submit your news to editors@ambizmedia.com If you would like additional copies of National Mortgage Professional Call (860) 719-1991 or email subscriptions@ambizmedia.com
www.ambizmedia.com
VIN CEN T M. VALVO Publisher, Editor-in-Chief
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
© 2023 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) 719-1991 info@ambizmedia.com
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DAVE HERSHMAN
RECRUITING, TRAINING, AND MENTORING CORNER
The Experience Of Rookies Do not discount other types of sales backgrounds
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BY DAVE HERSHMAN, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
e continue this month on the topic of hiring rookies into the industry. In the last column we discussed the determination of the quality of a rookie. In this column we would like to talk about the experience of a rookie. That might seem like an oxymoron of some kind. After all, when we hire a rookie, we refer to them as inexperienced. But everyone has some level of experience. As a matter of fact, I would argue that many novices coming into the industry have more and better experience than some working within the industry. I can’t tell you how many times I have heard of an experienced loan officer being hired over a rookie — despite the fact that they only had six months of experience and did very few loans. Plus, their previous company gave them almost no training. Yet we hired them anyway. Compare that to the experience of a seasoned rookie: • Sales experience. Perhaps they have sold within a company or even owned a
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experienced loan officers working for online companies have no clue what this vocation entails. Bonus: this would mean that they know plenty of real estate agents within their sphere and there maybe plenty this person can teach less experienced real estate agents. • Mortgage operations experience. A good processor knows how to get loans closed. They know the importance of a complete and documented loan application. They may not have sales experience, but how many loan officers with great sales experience struggle because they can’t get loans closed without major stress? • Real estate ownership experience. An experienced homeowner and investor in real estate would have an advantage over an experienced loan officer who has never owned a home. Having your own personal first-time homebuying experience to share can be priceless within the sales process. • Technology experience. Technology is more and more important to function within this industry. Yet the industry
especially considering the growth of minority homeowners. This also likely comes with having a sphere within a certain minority. ° Public speaking. Great public speakers are rare — but it is a great marketing skill — especially when delivering homebuying seminars and lunch and learns. Perhaps they have teaching experience. ° Leadership qualities. Great loan officers must be great leaders. They must lead each transaction — many of which provide major challenges such as divorce issues. Perhaps the prospect is the president of their homeowners association or leader within their church, mosque, or temple. Or they have managed or mentored many others within their previous careers. ° Financial planning experience. Owning a home is the most important investment most people make. Having investment experience is extremely significant. Do not consider this listing as comprehensive or exclusive in any way. I am
How many loan officers with great sales experience struggle because they can’t get loans closed without major stress? company in the financial services industry for 10 years or more. That would mean that they also have a large sphere of influence. Those industries might include insurance, financial products, banking and more. Perhaps they were an F&I (finance and insurance) manager for a car dealership. Do not discount other types of sales experience such as car sales. • Real estate experience. Many loan officers were previously real estate agents. Certainly, having intimate knowledge of what a real estate agent does is a major advantage. Many
is still full of ancient loan officers who do not embrace the technology which is essential to the position. We still have some taking hand-written loan applications and then entering them online! Social media experience is also important, especially with regard to direct consumer marketing and sphere marketing as well. • Additional experiences. There are many other experiences and skills that are very germane to the job of loan officer: ° Bi-lingual. Being able to speak another language is very important,
sure you can think of a variety of additional experiences and/or skills. The point is that many who are not in this industry have a rich and very germane background which you should consider, along with the quality characteristics we discussed within the last column. Rookies should be considered, but all rookies are not created equal. n Dave Hershman is the top author in this industry with six books published as well as the founder of the OriginationPro Marketing System and the OriginationPro’s on-line comprehensive mortgage school.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
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ERICA LACENTRA
THE XX FACTOR
The Need To Disconnect How to prepare for your time off so you can actually use your PTO
L
BY ERICA LACENTRA, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
et’s face it, there seems to be an unspoken rule in the mortgage industry that working in this space means working well beyond a typical 40-hour work week. Working early mornings, late nights, and weekends is the norm so that you can get that next deal and always be available to your clients. You may even feel guilty about utilizing your paid time off and when you do take time away, you can’t ever truly disconnect. However, at a time when employee burnout is high, completely disconnecting from your job from time to time can be conducive to long-term satisfaction in your career. There is no reason why you shouldn’t be able to utilize
your hard-earned time off and actually do so without having to worry about work. To make this a reality, though, and not have that nagging guilty feeling, it all comes down to how you prepare for your time off. So, what steps should you be taking prior to taking your PTO to set yourself up for success and make sure you don’t need to check in until you’re back on the clock?
ALERT THE MASSES One of the easiest ways to prepare your clients and partners for your time out of the office is by giving them advanced notice of the dates you will be away. Providing at least a week’s notice, either by phone or email, to any clients you currently have projects or deals in the works will allow you to discuss and prioritize anything that needs to be taken care of prior to your time out of the office
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urgent popping up while you’re away are often good in the mortgage industry. That’s why to set yourself up for success you also need to prepare your internal team and set backups to deal with any issues that may arise when you’re gone. Huddle up with your team to discuss any projects that are currently in progress, cover any deals that are in the pipeline, and create a plan of action for how things should be handled while you are out. Depending on your workload and current projects that are underway, make sure you designate as many people as you may need to cover any issues that may arise and make sure your backups are covering areas of your workload that they are familiar with and comfortable taking on. Provide your backups with details as to how to best handle the
of-office message to reinforce who people should be contacting to resolve problems during this time.
IN CASE OF EMERGENCY As a final precaution when you utilize your time off, it is important to have instructions for what to do in the case of a true work emergency. You should designate one person as your “second in command” that in the event things are really going sideways, they have the ability to reach you. This should be someone you trust that would only reach out to you in circumstances that are truly considered an emergency, something that no one else in your organization would be equipped to handle or address. If you have taken all of the other steps
There is no reason why you shouldn’t be able to not only use your time off but also not feel like you need to work during that time. and also figure out what can wait to be addressed until you’re back and develop a plan for that. For clients and partners, you might not be actively working with, another easy way to address this is by adding a line into your email signature noting that you are going to be out of office and the dates you will be gone. This ensures you are covering all of your bases and letting as many people as possible know when you will be away, meaning there is less opportunity for problems to arise while you’re gone.
SET YOUR BACKUPS Why does it always seem like problems happen at the most inopportune times? Despite your best efforts to be proactive with your clients, the chances of something going wrong or something
tasks they are assigned to cover and in the event something goes awry, give them detailed guidance on how to troubleshoot and resolve issues. You should also ask the people you designate as your backups to keep notes as to what goes on with areas they are covering when you are out of office. That way it will be extremely easy for you to pick up on any items in process when you return. Finally, just as you alerted your clients and partners that you would be out of the office, let the people you work with know who to go to as your backups while you are out. In case issues do pop up, it will save time when your clients know who to contact immediately rather than reaching out to you and getting frustrated when they receive your out-of-office. These details can also be included in your out-
outlined to appropriately set yourself and others in your organization up for success, this should really be the only reason you would ever need to have your time off interrupted. Meaning in most cases, you will truly be able to disconnect when you use your PTO in the future. Despite the mortgage industry being a space that tries to glorify the grind to get deals done, there is no reason why you shouldn’t be able to not only use your time off but also not feel like you need to work during that time. Appropriately preparing beforehand can make all the difference and set you up for what your time off is meant for, rest, relaxation, and a chance to reset. n Erica LaCentra is chief marketing officer for RCN Capital.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
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LEW SICHELMAN
THE MORTGAGE SCENE
Waters Are Rising For Some Borrowers Student loan debt forgiveness proves not to be very forgiving
H
BY LEW SICHELMAN, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
ow are we going to keep people in their homes when things are crumbling all around them? By things, I mean rising cost of home owners insurance, if they can find coverage at all. I mean student debt payments many owners thought they’d never have to pay back, only it turns out that they do, at least for now. Last month in these pages, I focused on the often overlooked — but ever increasing — costs of owning the roof over your head, mentioning insurance as but one item. But I covered it almost in passing, in just
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While you’re trying to wrap your head around that number, also consider this: The Biden Administration doesn’t seem to be done. This summer, The White House said it will make $19 billion more in forgiveness from a one-time adjustments to the Income Driven Repayment Account, an adjustment the AEI says “substantially alters” the terms of the repayment formula. And it continues to push blanket forgiveness, which the Supreme Court has ruled against. To paraphrase Everett Dirksen, the Republican Senator from Illinois and perhaps the last great Capitol Hill orator, a billion here, a billion there, and pretty soon you run into big money. I’m not saying student debt forgiveness is good or bad, it just is — or will be. But some of the 37 milllion beneficiaries of the temporary pardons will not be able to pay it back. Especially if they have a mortgage, pay rent and/or have other debt. Even before payments resumed last month, some folks were struggling. And more than a third had not put any money away to make payments once they began. According to a Harris Poll study on behalf of Credit Karma, nearly half the some 400 participants with student debt were already scrambling to cover their auto loans, credit card payments, and house payments even before forbearance ended. That’s also even though they hadn’t been making any payments on their student debt. This isn’t about lending these people money to buy a house, although it most certainly applies. Rather, it’s about keeping
When it comes to insurance, tell people not to panic, but to start searching for replacement coverage right away. two paragraphs, noting that premiums rose 11% in 2022. And with major carriers pulling up their skirts in high-risk states and high-tailing it out of town, rates are poised to rise even higher moving forward. But I did not mention student loan debt at all. After a threeyear hiatus on repayments thanks to relief granted during the pandemic, monthly bills resumed last month. So let’s start there. Does the word crisis mean anything to you?
NOT DONE YET According to the American Enterprise Institute, some $317 billion in student loans has been forgiven through the second quarter. That’s billion, with a capital B. And it’s not a future prediction. It’s what’s already gone out the door. By comparison, it’s a third of last year‘s military budget and three times what Uncle Sam spends of education.
them in the houses they already financed. After all, about 18% of everyone have student debt, either for themselves or a child, and three out of four of those also are on the hook for supporting their families as well as their educations.
‘GET IN FRONT OF THIS’ As I pound away on my trusty keyboard, the foreclosure numbers look pretty good. Fannie Mae says serious delinquencies were down in July from a year ago. And ATTOM recorded a slight decline in new filings in July. Better yet, all but the most recent buyers have tens of thousands in equity to fall back on. But according to the Credit Karma poll, October was the first time a third of the respondents ever had to make a student debt payment. In some cases, their student loan payments are more than their house payments. Bloomberg found two such families. One, a physical therapist in Kentucky and his
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
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THE MORTGAGE SCENE
wife, have $94,000 in debt from their undergraduate and graduate studies. Their monthly payment on that debt load is $1,140, or almost $300 more than on the payment on their $207,000, 3.25% mortgage they took out in 2020. The other, a Lexington, S.C., attorney, and his bride, faces a $2,100 a month payment for their school loans compared to $1,850 house payment for the $346,000 house they bought with 3.2% financing, also in 2020. The message here is that lenders — but especially loan services — have to get in front of this before it bites them in the keister. As Bloomberg reported, “experts have predicted a wave of delinquencies … as debt payments further stretch household budgets.”
Owners in Washington, Montana and Colorado are seeing their coverage options shrink, according to a Washington BREACHING CONTRACTS Post report. And the Wall Street Journal says that within the Now let’s take a deeper dive into homeowners insurance. last year, double-digit rate increases have been approved in 31 And to do that, we must first consider climate change. states, six of which have okayed increases of 20% or more. As I type this in September, there already have been more The situation is such that many people are going billion dollar weather events — again that’s a capital B — “commando,” dropping coverage altogether. In effect, they are than in all of last year. A firestorm that wiped out an entire self-insuring, betting that they can dodge the next calamity or Hawaiian town. A rare hurricane in Southern California, on cover whatever loses they may incur out of their own pockets. top of a not-so-rare earthquake. The usual number of deadly Those without a mortgage can get away with that. But those tornados in the Midwest. A hurricane that hits Florida’s Big with a loan are breaching their contracts and their servicers Bend region for the first time ever. can call the loans due and payable. No wonder insurance companies are pulling in their horns, That, of course, is a drastic step. Before that, servicers can especially in California, Louisiana and Florida, where some have demand that borrowers obtain coverage. And if borrowers stopped writing policies altogether. In the Golden State, State don’t, they can “force-placed” coverage. Such insurance Farm, the state’s largest insurer, and Allstate have said goodbye. In will protect the property, the owner and the investor, but Florida, Farmers Insurance have joined those two in bidding adios. it is sometimes not nearly as comprehensive as what the Next in line? Who knows. But almost everywhere else, borrower can find on his own. Not only do they often not insurers are hiking their rates to compensate for big losses. include personal property or liability protection, such policies
Freddie Weighs In On Student Debt
F
reddie Mac has updated its guidance on how to handle student debt loan payments for would-be borrowers with education loans. Effective as of early September, lenders must specify an amount greater than zero when calculating the borrower’s debt-to-income ratio. Even loans with incomedriven repayment plans must state something other than zero.
For student loans in deferment, forbearance or repayment, including income-driven plans, if the monthly payment is greater than zero, lenders must use that amount unless other documentation supports a different figure. If the payment is zero, 0.5 percent of the outstanding loan balance must be used, according to the Freddie’s Seller-Servicer Guide. However, education debt may be excluded from the DTI calculation if the
borrower has 10 or fewer payments left until the balance is paid in full, forgiven, canceled or otherwise discharged AND the borrower is eligible or approved for forgiveness, cancellation or, in the case of an employment-contingent repayment program, there is no evidence the borrower will become ineligible in the future. As of this writing, Fannie Mae has not weighed in on how it wants its sellers to handle student debt. n > LEW SICHELMAN
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Helping Borrowers With Student Debt
are likely to be much more expensive, which will simply exacerbate the borrower’s difficult financial situation.
ESCROW WAIVERS No one knows for certain how many borrowers with a mortgage elect to pay their insurance and property taxes on their own rather than submit them on a monthly basis along with the principal and interest on their loans. The Mortgage Bankers Association doesn’t “even know how that data point would be tracked,” spokesman Adam DeSanctis told me in an e-mail response to my query. “I’m not aware of someone tracking escrow waivers or even surveying servicers on this.” But the Insurance Information Institute estimates that the number of those who elect to drop coverage has risen from just 5% in 2016 to 12% today. All of this begs the question, what can not just servicers but the entire mortgage community do to help borrowers who find themselves overwhelmed? And the answer isn’t that difficult. “Get ahead of the situation,” advises Jane Mason of Clarifire, the workflow automation and technology company based in St. Petersburg, Fla. “You have to be proactive. You owe it to everybody to be really proactive.” When it comes to insurance, tell people not to panic, but to start searching for replacement coverage right away. Most states require that insurers provide an advance notice of cancellation — 120 days in Florida and 75 days in California — but those days can go by pretty quickly. So the sooner the search begins, the better. Some people will hunt for another insurer on their own. But an independent agent who works with multiple companies can take over the leg work. I used such an agent when coverage was dropped on my Florida residence, and she found a replacement policy that was actually less expensive than the original one. Under a worst case scenario, some states offer coverage through state-run companies for consumers who can’t find coverage from a private company. Although it was meant to be a backstop for home owners, Florida’s Citizen Property Insurance Corp. Is now the Sunshine State’s largest insurer. As far as student loans are concerned, reach out to every owner on your books, advising them that if they have such debt, you’re here to help. “Think of yourselves as rapid responders,” Mason of Clarifire advises. Once you aggregate that group, use your technology to target it with a specific campaign. You might be able to offer borrowers the chance to consolidate their school loans into their mortgages, perhaps at a better rate then they have now. Or perhaps you can direct them to government sites (see sidebar) that suggest ways out of their dilemmas. Above all, though, “communicating is very important,” says Mason. “Use your marketing teams to create outreach programs and use your technology to offer rapid responses.” 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.
T
he Biden Administration is hoping a new income-driven federal student loan repayment plan will ease the transition for at least some of 28 million borrowers who had to start repaying their loans in October The SAVE (Saving on a Valuable Education) plan reduces repayment amounts compared to previous income-driven plans. It allows borrowers to make monthly payments based on both their incomes and family sizes, with any remaining balances forgiven at the end of the 20 to 25-year repayment period. For typical community college borrowers with up to $12,000 in outstanding loan balances, SAVE reduces the time to forgiveness to as little as 10 years. It also ensures that enrolled borrowers who make their payments on time do not incur growing loan balances because of accrued interest. At the same time, the U.S. Department of Education has begun automatic discharges for 804,000 borrowers who qualify for a portion of the $39 billion in relief made available because of “fixes” earlier this year to IDR plans. The discharges are meant for borrowers who never received the amnesty they earned after making payments for decades. Borrowers who have accumulated the equivalent of either 20 or 25 years of qualifying months are eligible. Meanwhile, there are options for repaying both federal and private student loans, though they are somewhat different for each category. Savvy servicers will find out what they are and notify their borrowers about them. But at the very least, they should tell people where to find them – www.usaw.gov or https:// studentaid.gov/manage-loans/forgiveness-cancellation. Federal loans offer a variety of income-driven repayment (IDR) plans that base payments on the borrower’s income and household size. The Department of Education’s loan simulator can help people pick a plan that best meet theirs needs. Those with private loans must ask for relief. Private lenders are not required to grant respite, but if your investor is amenable, advise borrowers they will have to show proof of hardship and how much you can safely afford to pay. Also advise borrowers they needn’t pay for assistance in figuring out how to proceed, More than a few people have been scammed into paying hefty fees for what should be a free service. Recently, the Federal Trade Commission and the U.S. Department of Labor started sending payments totaling more than $9 million to 22,500 consumers who lost money to a company operating a bogus student debt relief scheme. The outfit’s owner was convicted on criminal charges in connection with the dodge. n > LEW SICHELMAN
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N O N - Q M LE N DE R RE SOU RC E GU IDE
Acra Lending Lake Forest, CA
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 experience. acralending.com (888) 800-7661 sales@acralending.com 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
Champions Funding Gilbert, AZ
Mission Driven Non-QM + CDFI Wholesale Lender At Champions Funding, we Non-QM all day, every day! It’s our core business, and we live to serve underserved borrowers through our valued broker partners. We put diversity and inclusion into mortgage lending by empowering the mortgage broker community to provide solutions for non-traditional credit profiles and those who cannot get approved with standard financing. Through our highly coveted CDFI certification backed by the U.S. Department of the Treasury, we can offer our flagship neighborhood products and tap into a $1 Trillion market of historically underserved communities in the country. Focused on speed to closing (in days, not weeks), smooth processes, and user-friendly access to our underwriting and support teams, we offer modern, flexible, and responsible non-traditional lending solutions. champstpo.com (949) 763-9494 Wholesale@ChampsTPO.com
Newfi Wholesale Emeryville TX
DSCR, Bank Statement, 1099, Asset Depletion, Buydowns, Full Doc Non-QM No one knows Non-QM like us. Newfi Wholesale is an exception-based Non-QM lender dedicated to helping brokers find success. We offer a full Non-QM product suite including: Full-Doc, Bank Statement, 1099, Asset Depletion, Interest Only, Non-QM ITIN, Non-QM Buydown, DSCR 1-4 & 5-8 Units, DSCR Condotels, Graduated Payment Mortgages, and more. At Newfi about 1/3 of our funded deals have exceptions that we make in-house! newfiwholesale.com (888) 415-1620 support@newfi.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, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, WA, WV, WI, WY
LICENSED IN: AZ, CA, CO, CT, DC, FL, GA, HI, IL, IA, MD, MI, NJ, NC, OR, PA, SC, TN, TX, UT, VA, WA
Find the full list of Non-QM Lenders on page 68
A M C RE SOU RC E GU IDE
PCV Murcor Pomona, CA
pcvmurcor.com sales@pcvmurcor.com (855) 819-2828
AREA OF FOCUS: Nationwide Real Estate Valuations Management — Appraisal Management Company DESCRIPTION OF PRODUCTS OR SERVICES: Licensed in all 50 states, plus D.C., PCV Murcor provides nationwide appraisal management and valuation advisory for residential and commercial Find the full AMC list on page 69
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
real estate. An industry leader with over 40 years of experience managing valuation needs for mortgage lending, financial institutions, estate and litigation, real estate investors, and mortgage servicers.
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HOW NMP’S MONTHLY SECTION OF HANDS-ON PRACTICAL ADVICE
BUILD A BROKER
Treat Servicemembers Right YOUR FIRST MILLION DOLLARS
Kick Complainers To The Curb BENCHMARKS & BEST PRACTICES
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People On The Move
PEOPLE ON THE MOVE //
> The
Money Store welcomed John Palmiotto, a seasoned industry leader, to the company’s C-suite as the chief production officer.
> The
Mortgage Bankers Association announced that George Rogers has joined the association as vice president of legislative affairs.
> Pretium, a
specialized investment firm focused on residential real estate, residential credit, and corporate credit, announced that Jonathan Pruzan has joined the firm as president.
> William
Tessar launched CV3 Financial Services, a private lender, providing real estate investors financing for fix-and-flip and rental properties.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
15
BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE BUILD-A-BROKER
% n o i t u l o S
6
The
A primary provision is an interest rate ceiling for active duty personnel
PEOPLE ON THE MOVE // > Mortgage
Information Services Inc. opened a new office for title and escrow services in Fort Worth, Texas. The new office will be led by Michelle McClellan.
16
> First Home
Mortgage Corporation expands to Sevierville, Tenn. Veteran mortgage professional Brad Guinn to head inaugural Tennessee office.
> New
American Funding is expanding its executive leadership team with the appointment of Andrew Strickman to chief marketing officer.
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
> Gateway
Mortgage, a division of Gateway First Bank, announced the promotion of Mark Revard to division executive vice president/national production manager.
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BY DANA FEDERSPIEL, SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
W
hen military members are on active duty, they need to focus on the mission at hand — not their mortgage. As a result, the federal government enacted the Servicemembers Civil Relief Act (SCRA) to provide legal and financial protections to active-duty military members and their families. One of the primary provisions of the SCRA is that it limits the interest rate that can be charged on certain types of loans, including mortgages, to 6% while the servicemember is on active duty. To take advantage of this benefit, servicemembers must notify their creditor in writing and include a copy of their orders to active duty service or other appropriate evidence of military service, such as a certified letter from their commanding officer, that shows the dates of active duty. Under the protection of the SCRA, mortgage servicers are also prevented from foreclosing on the property of activeduty military personnel without a valid court order, regardless of whether or not the servicemember notifies their lender or servicer of their military status. The interest rate and foreclosure protections generally apply to preactive-duty mortgage obligations and are afforded to servicemembers not only while on active duty but also for an additional year after leaving active duty. These protections allow servicemembers
> CMG Home
Loans, the retail division of CMG Financial, a privately held mortgage banking firm, has welcomed Area Sales Manager Michael Wise.
> Toorak
Capital Partners announced that Scott Goldman has joined the company as head of asset management.
to dedicate their full attention to their duties and offer some relief to them and their family members. As interest rates rise, it is becoming increasingly important for mortgage servicers to evaluate their SCRA procedures and policies. Servicers should take the time to evaluate and update their existing processes, technology and reporting. Automation can play a significant role in helping servicers identify and manage SCRAprotected loans to help prevent interest rate violations and foreclosure missteps. Failure to comply with the SCRA can result in significant penalties and legal action. Mortgage servicers that are not prepared for compliance with the SCRA may find themselves facing costly fines and legal fees, as well as damage to their reputation and customer relationships.
WHO IS ELIGIBLE FOR SCRA PROTECTION? The SCRA applies to the following groups: • Active-duty members of the Army, Marine Corps, Navy, Air Force, Space Force, and Coast Guard • Members of the Reserve component when serving on active duty • Members of the National Guard component mobilized under federal orders for more than 30 consecutive days • Active-duty officers of the Public Health Service or the National Oceanic and Atmospheric Administration
> Black
Knight Inc. announced that real estate industry veteran Lucie Fortier has been named executive vice president of the company’s MLS Solutions group.
> Motto
Mortgage has a new office in Locust Grove, Georgia, established by Tracy Goring-Hamilton.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
17
BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE
BUILD-A-BROKER
FIVE STEPS TO IMPROVE SCRA COMPLIANCE Today’s rising interest rates are driving a renewed focus on SCRA regulations — and there is no better time to take a closer look at this area. Here are steps that mortgage servicers can take to improve SCRA compliance: 1. Identify borrowers who are eligible for SCRA protections. This requires working with the Department of Defense (DOD) to obtain information about service members who are on active duty. Servicers should use the DOD’s Defense Manpower Data Center (DMDC)
management of SCRA loans. Mortgage servicers should explore how their existing mortgage servicing technology can help them track and manage loans belonging to military servicemembers. If additional functionality is needed, servicers should ask their technology providers about what they offer to support SCRA compliance. For example, Black Knight’s MSP servicing system includes the Military Service Relief (MSR) Workstation, designed specifically for servicers to help them better manage their SCRA portfolio. The workstation allows servicers to record deployment order histories and status changes for the life of the loan,
are automated portfolio monitoring and reporting solutions available that can help streamline these processes. 5. Stay up to date with evolving SCRA regulations. Congress has made amendments to the SCRA in recent years, requiring mortgage servicers to stay up to date on current SCRA requirements to maintain compliance. Servicers should have processes in place to monitor legislative changes to the SCRA.
CONCLUSION Taking these steps can help mortgage servicers comply with SCRA regulations
Taking these steps can help mortgage servicers comply with SCRA regulations to avoid costly penalties, legal action, and reputational risk. to obtain and validate a borrower’s active-duty status and maintain that information in their technology systems to assist with downstream processes for implementing the SCRA requirements. 2. Establish policies and procedures for complying with the SCRA. Mortgage servicers should evaluate and standardize their policies and procedures to help protect a servicemember’s loan while they are on active duty and during the grace period thereafter. This should include training for employees who are responsible for compliance, as well as regular audits to confirm that the SCRA policies are being followed. 3. Leverage automation to streamline
providing the transparency servicers need to help them identify, track, and properly process SCRA-protected loans. Automating the management of SCRA-protected loans can help servicers prevent missteps related to fees, interest rates, and foreclosures. 4. Routinely monitor servicing portfolios for the active-duty status of military customers. A servicemember’s active-duty status is likely to change over time. It is not enough for servicers to verify active-duty status once and forget about it. They should routinely check their customers’ eligibility for SCRA benefits and monitor loan activity, interest rates, and default status. There
to avoid costly penalties, legal action, and reputational risk. It is important to proactively prepare for compliance with the SCRA, especially as new loans are originated with higher interest rates. A good place to start is talking with your mortgage technology provider to see if they have tools and professional consultants available to help you streamline and automate SCRA compliance. By doing so, you can protect your business while supporting servicemembers and their families. n Dana Federspiel is senior vice president for servicing technologies & product innovation at Black Knight.
PEOPLE ON THE MOVE // > New York
Community Bancorp Inc. appointed Julie SignorilleBrowne as senior executive vice president and chief operating officer.
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> Crown
Home Mortgage, a division of Absolute Home Mortgage Corporation, named Dave Stein as the new southeast divisional manager.
> Integro
Bank in Phoenix, Ariz., has launched a mortgage division led by Steven Zielsdorf, the vice president and director of residential mortgage lending.
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
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PROMOTION TO SHARE?
Submit the information to Keith Griffin at
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WVOE ONLY 1099 ONLY P&L PROGRAMS
OUR PROGRAMS
INVESTOR CASH FLOW / DSCR 12 MONTH BANK STATEMENT FOREIGN NATIONAL
NON-QM ATR-IN-FULL JUMBO ITIN INTEREST ONLY MULTIFAMILY
A LOOK INTO ACRA LENDING We have put in substantial time and resources to internalizing customer feedback, fine tuning our financial and operating model, and investing in the best people and technology. The goal of all these efforts is to keep building upon our strong foundation to provide industry leading service and programs to suit our customers’ needs
Acra Lending is a registered dba name of Citadel Servicing Corporation, 3 Ada Parkway, Ste 200A, Irvine, CA 92618; (888)-800-7661 (“CSC”) NMLS ID# 144549, Licensed under Arizona Mortgage Bankers License # 1034431, California Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act license # 41DBO-74196, Finance Lenders License # 60DB0-94450, CA-DRE #01799059, Florida Mortgage Lender Servicer License # MLD523, Georgia Mortgage Lender License/Registration # 23462, Minnesota Residential Mortgage Originator License Other Trade Name #1 MN-MO-144549.1, Nevada Mortgage Company License # 4449, North Carolina Mortgage Lender License # L-160722, Oregon Mortgage Lending License # ML-5599, Tennessee Mortgage License # 125315, Utah-DRE Mortgage Entity License - Other Trade Name #1 12074249, Virginia Lender License # MC-5845. For mortgage professionals only. This is for informational purposes only. For legal and professional advice on applicable state and local licensing requirements that apply to you, please contact an attorney. Acra Lending is an equal opportunity lender. Rates, terms, and programs subject to change without notice. Offer 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, ND, and SD.
HARVEY MACKAY
BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE
YOUR FIRST MILLION DOLLARS
Conquer Chronic Complainers It’s OK to be blunt about not wanting to hear their negativity and that you must move on
O
BY HARVEY MACKAY, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
ne stormy night the noted architect Frank Lloyd Wright was awakened by an urgent phone call from a client who had just moved into his Wright-built house. “There’s a leak in the roof, and the living room is flooded,” cried the man. “What should I do?” Wright advised, “Rise above it.” This man had a legitimate complaint, and I suspect Wright found a suitable solution to the man’s legitimate concern.
20 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
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Complainers see problems instead of solutions, making them difficult to work with.
Complaining is addictive. Complainers attract complainers. It leaves little room for positive feelings of gratitude, appreciation, and well-being. They are seldom happy. Complainers see problems instead of solutions, making them difficult to work with. Randy Pausch, the professor who is famous for “The Last Lecture,” said: “If you took one-tenth the energy you put into complaining and applied it to solving the problem, you’d be surprised by how well things can work out ... Complaining does not work as a strategy. We all have finite time and energy. Any time we spend whining is unlikely to help us achieve our goals. And it won’t make us happier.”
THE GLASS HALF DIRTY
But what to do about people who complain about everything? We should all rise above chronic complainers. They are a dangerous drain on your energy and are toxic. They can take the energy, creativity, fun, and productivity out of any group. My good friend, Hall-of-Fame college football coach Lou Holtz, said, “Never tell your problems to anyone … 20% don’t care, and the other 80% are glad you have them.”
Guy Winch, Ph.D., wrote in “Psychology Today,” “Optimists see a glass half full. Pessimists see a glass half empty. Chronic complainers see a glass that is slightly chipped, holding water that isn’t cold enough, probably because it’s tap water when I asked for bottled water and wait, there’s a smudge on the rim, too, which means the glass wasn’t cleaned properly and now I’ll probably end up with some kind of virus. Why do these things always happen to me?” So often, those who complain about the way the ball bounces are the ones who dropped it in the first place. What, then, is the best way to deal with chronic complainers? Here are a few suggestions: • Listen. Hear them out so they don’t feel they are being ignored. Maybe you will learn something. But don’t throw fuel on the fire by agreeing with or validating their complaints. Show empathy, but not necessarily sympathy. • Ask for solutions. When someone approaches you with a complaint, nicely ask them what they’ve done to improve the situation. They may have some good ideas, or it may abruptly end the conversation. I know one manager who put a complaining employee in charge of a project. The complainer quickly learned how difficult it is to make everyone happy all the time and had a noticeable change in attitude.
• Be honest. If it gets to be too much, you need to draw the line. It’s OK to be blunt about not wanting to hear their negativity and that you must move on. Or that you are slammed and don’t have time right now. Find a pleasant way to move on but be firm. • Have a heart-to-heart conversation. Sometimes you need to call out complainers. This might harm your relationship, but it also might help them realize their bad habit of complaining. Most likely, the complainer will find another audience for their list of grievances. • Lead by example. Don’t join in negative conversations. Bring positivity into the conversations. There is almost always something good in every situation; emphasize that. Author Glenn Van Ekeren says problems, pet peeves, and irritations will always exist. His solutions include avoiding being a problem-finder and instead being a problem-solver. I support that idea completely. I like to start conversations by acknowledging that we have a new challenge to overcome, making sure that everyone knows that there’s an issue. Then we can proceed to find ways to “rise above it,” as Frank Lloyd Wright suggested.
GIVE IN SOMETIMES And occasionally, you just can’t win. How do you suppose this fellow reacted in this situation? A hotel front-desk clerk received a call from an elderly guest who complained, “There is a man across the court taking a shower, and he’s got the blinds up.” The house detective was sent to the woman’s room to investigate. He looked out her window and said, “I can’t see a man over there.” “You can’t?” replied the woman. “Get up on that trunk and look again.” Mackay’s Moral: May you never complain without a cause and never have a cause to complain. n Harvey Mackay is a seven-time New York Times best-selling author with 15 books.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
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MARY KAY SCULLY
BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE BENCHMARKS & BEST PRACTICES
How To Steer Around Homeownership Hurdles Guiding prospective buyers through credit and down payment challenges
N
BY MARY KAY SCULLY, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
ot every prospective buyer that sits down at your desk will be ready to buy, but that doesn’t mean you should write them off. These prospective buyers are still an opportunity to grow a strong pipeline of future business. Connecting them with the right resources not only helps them prepare for homeownership, but begins a relationship that sees them return when they are ready to buy. So, what might stop a prospective buyer in their tracks? Two of the most common roadblocks include credit scores and down payments. According to a recent survey conducted by FormFree, out of the top five biggest barriers to homeownership, insufficient savings for a down payment ranks at number two (after high home prices) and insufficient
credit scores ranks at number four. Whether it’s struggling to save enough for a down payment or issues related to their credit score, some buyers aren’t quite where they need to be to buy a home. Let’s talk about how you can help prospective buyers navigate these hurdles and help them get ready to buy.
CREDIT AND DOWN PAYMENT CHALLENGES Credit and credit scores are a vital component of qualifying for a home and determining mortgage rates, but that doesn’t mean all prospective buyers understand credit or know their own credit score. According to the same FormFree study, one in 10 Americans have no idea what their credit score is, and two in 10 don’t know how to check their scores. A 2019 study by LendingTree found that nearly four in 10 Americans say they “have no idea” how credit scores work. Many homebuyers need assistance in understanding credit scores, the different scoring models, and even how their credit score factors into the homebuying process. Down payments are another critical piece of the homebuying puzzle, and one that frequently makes potential buyers feel that homeownership is out of reach. Roughly 26% of firsttime buyers stated saving for down payments was the most difficult step in the process, according to the “2022 Profile of Homebuyers and
Sellers” by the National Association of Realtors (NAR). The problem of saving enough for a down payment has led many borrowers to turn to friends and family for help. In fact, 22% of first-time buyers used a gift or a loan from friends or family for the down payment, states the same report from NAR. Of course, borrowers cannot use gift funds from just anyone. There are rules about who can be an eligible donor and how to document gift funds and these rules can be different for each loan program. There are many small details that make a big difference when it comes to credit scoring and down payments. No one should expect borrowers to know all the ins and outs, so it’s up to the loan officer to help them.
UNDERSTANDING CREDIT Loan officers should be working with prospective homebuyers on their credit, specifically their FICO score, to make sure they are eligible to buy a home. There is clearly a large percentage of borrowers that do not know how credit works or how to build and maintain a quality credit score. Although some programs allow borrowers without a score to qualify, loan officers should be prepared to serve as a mentor on how credit scores work, how a score can impact their rate and program and what behaviors help make up the FICO score. If you need a reminder yourself: payment history is 35% of a score, credit
22 | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
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One in 10 Americans have no idea what their credit score is, and two in 10 don’t know how to check their scores. > FormFree study
utilization is 30%, credit age is 15%, credit mix is 10% and new credit is 10%. Educating borrowers on tools that monitor credit and how different behaviors impact their score is a critical piece of preparing them to buy a home. FICO Classic is currently the most important score for mortgages. Borrowers can use myfico.com to monitor their score, and they can use www.annualcreditreport. com to get their free credit report from each bureau once a year. There are impending changes to credit scoring models in 2023 and beyond, however credit itself is not changing. Although some factors may be changing in credit scoring models, borrowers still need to pay their bills on time to keep or build a good score.
DOWN PAYMENT ASSISTANCE PROGRAMS Many first-time homebuyers still believe 20% down is required to buy a home and are not aware of programs available that either require less down or assist with down payments. As a loan officer, you should be prepared to explain the options available to your homebuyers. Industry giants like Freddie Mac and Fannie Mae have down payment assistance tools and resources which may be a good starting point for borrowers. Also, many local housing finance agencies (HFAs) and community organizations have assistance programs. Keep in mind that programs will vary by location, and
it is important that loan officers are educating their borrowers about the options that they are eligible for. Loan officers serve an important role in making sure their borrower is ready for this major financial decision. It’s part of the job to make sure borrowers are educated on essential pieces like credit and down payment assistance programs. Providing guidance and resources helps borrowers understand their financial situation and can make their dream home a reality. n Mary Kay Scully is the Director of Customer Education at Enact, leading the development of the company’s customer education curriculum.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
23
Helping A Disabled Vet Keep His Home Name: Brett Stacy
| Job Title: CEO | Business: Living Life By Design
How much was your best deal for?
What made it your best deal?
Back in 2010, I worked for Bank of America as a mortgage loan officer. I was doing more Home Affordable Modification Program (HAMP) loans than I can count. My team of 17 loan originators did $1 billion in modifications that year. One modification in particular was extremely memorable. It was for a Korean War veteran; let’s call him Mr. Tonry. Mr. Tonry was 100% disabled but continued to work. Because of illnesses, he was forced to retire. He was no longer able to afford his house payment. I was not able to qualify him for the HAMP program but was able to set an appointment for him with our loan modification department. Mr. Tonry would take phone calls in my office and I would send documentation in for him. Through the process, he was denied a modification several times. Each time I would step in and discuss his case with a modification department supervisor. Each time I was able to have them reopen his file for further examination. It took 13 months of consistent effort but we were able to get a modification loan approved. When I told Mr. Tonry that he was approved, he broke down in tears, then stood up and saluted me. I broke down as well...right in the middle of the bank. I received ZERO for helping Mr. Tanry but his heartfelt salute was the best commission I’ve ever made.
At the time, there were so many loan modifications being done that people simply became numbers. Persevering to get Mr. Tonry over the finish line, and his saluting me made this the best deal I ever closed.
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What else was interesting about the deal? All the humanity was removed from the process. Here Bank of America had the opportunity to do more than simply say, “Thank you for your service.” Because Mr. Tonry was simply another “number” they denied him. I could have just walked away but Mr. Tonry DESERVED better. He had already sacrificed so much to protect the freedom we so often take for granted. I wanted to give him a tangible act of gratitude. I was willing to do whatever it took to save his home, As I said above, he deserved this. Now, 13 years later, my youngest son, Bradley has chosen to accept the challenge, to sacrifice and become a HERO, a United States soldier serving in the Army’s 82nd Airborne. I am proud, and humbled beyond words. n
Have a great story about your best deal? We’re not talking about your biggest deal. We want to hear about your best deal — the one that resonates with you personally, the one that became the story you’ve told again about why you’re in this business. Head over to bit. ly/MyBestDeal and tell us the details. You could win a $100 Amazon gift card if your story is selected for publication.
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
Discover Where Your Competitors Stand In The Mortgage Market Adapting to today’s dynamic mortgage market has changed the way we analyze trends and track competitors. Luckily, we have the tools you need to determine your competitors’ market share and see how individual loan originators are performing in their market.
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Welcome To America. Want To Buy A House
?
ITIN loans open up possible sources of new originations
T
BY ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
hey have never spoken to a real estate agent, never mind a loan officer. They are technically illegal immigrants with no Social Security numbers, but they do have solid down payments, no plans to default, and unrelenting dreams of homeownership. These may not sound like the most desirable borrowers, but lenders in one niche market can certify the value, reliability, and referral rate of ITIN loans and the borrowers who love them.
WHO THEY ARE
T
he government issues Individual Tax Identification Numbers (ITINs) to recent immigrants to the U.S., non-resident aliens, and their family members. “These folks are filing and paying taxes. They’re going to schools, they’re using our roads, they’re using our hospitals. They are here adding to the fabric of our society. And to me, creating a home and creating a domicile — that builds wealth, that creates stability for communities and that is good for this country,” says Robert Senko, president of ACC Mortgage and Right Opportunity American REIT (ROAR). Senko built a career creating solutions for underserved borrowers and investing in
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
undervalued assets. Border states such as California, Nevada, Florida, ITIN loans are just one of many Non-QM products and Texas are teeming with could-be borrowers, Senko’s company lends and invests in. They are according to Reynaga. geared toward people who may have been in this “In multiple regions there’s a need for a program country for a while or came here as children, but don’t for millions of potential homeowners, and the have green cards or necessary documentation to opportunity is very minimal right now,” he says. secure traditional loans. “It’s a solution to home ownership for individuals “This is a very fertile market,” Senko adds. “A lot of that have an undefined legal status here in the these folks are tradespeople, so there’s a lot of pride country. They don’t have the means to get a work in ownership and the performance on these loans is permit, to get a residency card or working visa, or, really second to none.” of course, citizenship. So what the ITIN loans do Oftentimes multiple generations of a single family is allow hardworking individuals to lawfully get live in one home together. Mom and Dad’s names into a house.” are on the loan, but adult children, grandparents, cousins, and other relatives are contributing IT’S NOT THAT HARD members of the household. “This population doesn’t take on a lot of unnecessary ecuring, writing, processing, and closing on debt,” Senko says. “They are very cash heavy, they an ITIN loan may pose unique challenges, but appreciate, and they pay off quickly, too, because they they’re not insurmountable. want to be out of debt. They’re not looking to take “It really isn’t different from a traditional loan,” advantage. As these folks earn and work, they pay off Senko says. “We still have the same rules and these loans very quickly.” regulations that are prescribed by Just like Senko’s great-grandparents, Dodd-Frank. We need to have the ability who settled in German, Italian, and to repay. We still need to see pay stubs, Irish neighborhoods when they came to W-2s, tax returns, bank statements, the U.S. in the late 19th century, more P&Ls (profit and loss statements) if recent waves of South and Central they’re self-employed. The qualifying American immigrants tend to assimilate process is no different, so it’s not like as neighbors. they’re any more risky. In fact, I find “If you’re a loan officer wanting to their performance is extraordinary.” tap into this market, and particularly ITIN borrowers often haven’t if you can speak Spanish, this is a > Robert Senko, established good credit right away and fantastic market because they’re new to president, need help getting there. the country,” Senko says. “They don’t ACC Mortgage and “That’s one of the things that I spend a have those deep connections in the Right Opportunity lot of time on, helping clients understand community to realtors, to loan officers, to American REIT (ROAR) credit and plan ahead to build a good mortgage banks, to banks. It’s probably credit score so that they’ll be able to get one of the best referral business markets out there. the lowest possible rate,” Reynaga says. “I tell them, They tell two friends, and so on and so on.” you have to do A, B, C, and D in order to get to E. And Oscar Reynaga, branch manager with E Mortgage that’s usually what makes it a reality. When you create Capital, is an MLO who has tapped into the ITIN a path and you tell clients what to do and they follow market along the southwestern U.S. coast. He is a the plan.” native of Mexico. Difficulties in verifying an applicant’s financials “When I first came to the country as an can lead to some nuances in the underwriting immigrant in 1995, I was just a teenager,” Reynaga process, but it’s worth the trouble to lenders who do recalls. “We all lived in an apartment. There was no ITIN loans. space for a garden. You have no idea how that broke “The key is, these folks are putting down 15, 20, my mom’s heart because she needed flowers and 25% to buy these homes. They have the money,” roses and plants.” Senko says. “They’ve proven the ability to save He knows firsthand what it’s like for a family money. Now we have to prove their ability to repay who comes to America for a better life but is in terms of qualifying them.” barred access to the same resources within reach of Education is another roadblock, as is the case in ordinary Americans. any business. Sometimes people hear about a friend “Think about children saying, ‘Dad, how come we of a friend getting a home loan, and it makes them don’t buy a house? You drive this beautiful truck or think they can qualify, too. this beautiful car and we can afford a house, right?’ “Unfortunately, not everybody is well informed And then you tell your kids, yeah, we can afford it, or educated on what they need to have as far as but the bank won’t lend to me because I’m illegal, or financials and credit to be able to buy a house,” I don’t have a valid social. It’s heartbreaking to kids Reynaga says. “They get misled into what to do, and families, to spouses,” he says. what they need to provide.”
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ITIN loans often have higher interest rates in comparison to conventional home loans, due to the perceived higher risk, but this varies among lenders, loan programs, and individual circumstances.
SECURITIZATIONS AND ASSET BUYERS
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simple lesson in securities is necessary to understand the profitability of ITIN loans. In order to facilitate market liquidity,
Either way, the funds are out there. “There’s plenty of pockets of money that do support these that love the returns and love the performance of these loans, which creates a healthy lending market for these folks,” Senko says. With acceptance and tolerance slowly increasing from a financial standpoint and a steady flow of potential borrowers, will more lenders want to get involved in ITIN? “I felt like we always had this great niche,” Senko says. “There were other lenders out there like us, so
So the first thing is to really
separate yourself from the loan officer crowd as someone who can solve their problem.
When you have these unique circumstances, you want to work with a partner that can understand and navigate. > Robert Senko, president, ACC Mortgage
Non-QM loans such as ITINs are packaged into securitizations. Rating agencies evaluate the metrics, assign the package a grade, and then various funds bid on different portions of it. “There’s different rating agencies, and you have some that will say you can have zero of these loans in a securitization, while others say you can have up to 5 percent, but to have a securitization that would have 20 or 25 percent ITIN is impossible today,” Senko says. “I think that will change down the road because that logic is antiquated and flawed.” About 5% of the total is typically held onto as a retention piece by the lender or aggregator, while the remainder of the securitization is sold in the marketplace among insurance companies, pension funds, mutual funds, and other asset buyers. “That money from bonds comes back to the originator to then go out and lend again and this washes and repeats,” Senko explains. “So it allows them to start with that money and then be able to continue to keep lending out and then securitize those future loans down the line.” A number of buyers prefer the whole loan strategy, which doesn’t involve breaking up the loan in the secondary market.
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we didn’t invent the space, but I think every industry, regardless — computers, technology, the mortgage industry — is very much a copycat industry. So when you see one firm having success, everyone says, well, what are they doing? We should be doing what they’re doing. So I think you have a combination of originators, of other lenders like ACC, adopting, adapting, and wanting to get into this market.”
GETTING IN
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very good LO understands the need to create demand and interest in themselves. Finding a niche in a competitive landscape is what drove Senko to ITIN loans. “These were people that couldn’t go to their bank, they had to come to a mortgage professional,” he says. “So the first thing is to really separate yourself from the loan officer crowd as someone who can solve their problem. When you have these unique circumstances, you want to work with a partner that can understand and navigate. That’s the strength of it.” Senko offers a good talking point for loan officers who aren’t yet experts in ITIN but would like to get their feet wet.
“You don’t have to be the expert today,” Senko says. “You will learn that. What you need is to have the resources and the contacts to go to when you have those questions. Meaning, a customer or a realtor approaches you with a scenario. You say, that sounds like something I can do. Give me some information, and then you call your account executive and say, ‘I have this high level loan I have to underwrite. What do you think you can do for me?’ ” While there are no general statistics as to the delinquency rate of ITIN loans, specific financial institutions that specialize in these have reported positive results. For example, the Guadalupe Credit Union reported a delinquency rate of 1.24% for its ITIN base, compared to 1.88% overall for an unspecified time period. The Latino Community Credit Union reported a 1.16% delinquency rate for ITIN, compared to 1.88% overall.
THE AMERICAN DREAM
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ride of ownership is a phrase that is common among lenders who are well versed in ITIN loans. “People don’t care about the cost, they just care
about the objective and realizing the dream of homeownership,” Reynaga says. “To them, it’s pride of ownership, the right to having their own home. It’s about their kids, their grandkids; it’s about their brothers and sisters and mom and dad. To show them this is the land of opportunity.” Just last year, he helped several families secure loans along the California coast, where they didn’t imagine they could even afford to settle down. “That was very rewarding,” Reynaga says. “These were childhood friends and you put a smile to their faces and it’s all over Facebook who helped them. I got bombarded with phone calls.” He would like to see lenders open their minds to ITIN loans and recognize their value, both financially and morally. “You will not regret getting someone with an ITIN to be part of your portfolio because they pay their mortgage off on time and very quickly,” Reynaga says. “Most of the cases I’ve seen have just been like that.” “If they have the money, and they have documentable income sources, then they have the ability to share in the American dream,” Senko says. “And I think that is what is exciting for the market and for the country and I think it creates stable communities for everyone.” n
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ACC Mortgage is the oldest NonQM 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 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
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No one knows Non-QM like us. Newfi Wholesale is an exception-based Non-QM lender dedicated to helping brokers find success. We offer a full Non-QM product suite including: Full-Doc, Bank Statement, 1099, Asset Depletion, Interest Only, Non-QM ITIN, Non-QM Buydown, DSCR 1-4 & 5-8 Units, DSCR Condotels, Graduated Payment Mortgages, and more. At Newfi about 1/3 of our funded deals have exceptions that we make in-house! newfiwholesale.com (888) 415-1620 support@newfi.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, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, WA, WV, WI, WY
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PR O D UCED BY NMP F OR T HE INT ERE ST FE AT URING SHANE KIDWELL , C OA CH WIT H NE X T LE VEL LO s T UNE IN E VER Y T UE SDAY F OR YOUR T E CH R OUNDUP.
Getting insight into borrowers' needs builds better relationships and more closings
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BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
n the complex world of lending and borrowing, loan officers play a crucial role in facilitating successful financial transactions and helping borrowers sail through the experience as smoothly as possible. As borrowers navigate the loan application process, they often have specific expectations from their loan officers — especially in the current purchase market. Understanding these expectations can help loan officers provide the service needed to make borrowers feel at ease during the largest financial transaction of their lives.
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Albeit a bump in consumer optimism, according to a Fannie Mae housing survey, customers are still weary when it comes to home buying and borrowing. The report noted that “affordability constraints continue to hinder overall homebuying sentiment, with only 23% of respondents indicating it’s a good time to buy a home.” According to ICE Mortgage Technology’s “What do borrowers want?” e-book, consumers are most looking for flexible loan options, to have a lender who creates a “tailored experience,” and help understanding what options are available to them when it comes to what they can afford. But it doesn’t stop at affordability concerns. Borrowers are facing a mixed bag of emotions as they navigate inflation
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and economic volatility while trying to successfully put an offer in on a home. Loan officers then take on the role of being a default handyman when it comes to ensuring that a borrower’s process goes smoothly. But borrowers have their own laundry lists of preconceived notions as to how their loan processes should go.
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FIRST-TIME BORROWER
or a newcomer to the housing market, buying a house is a stressor on its own. But securing a mortgage — especially as a young adult — is an entirely different playing field. Nicole LaRose, a native of Eastern Connecticut, decided to pursue an investment property purchase at just 22 years old. LaRose works at a CONNECTION OVER TRANSACTION local manufacturer and says that she met NorthStar Home ake Josh Welch for example. Welch bought a house Loan’s owner through community events that both of their at the tail end of 2020 when they were flying off the companies participated in. “Growing up in a small town shelves. U.S. housing gained about $2.5 trillion in community is everything. I chose Jason Verraneault and value in 2020, and Welch took a risk by competing NorthStar because I recognized their brand from contributing for his Connecticut home. He went through Freedom to community events that my employer was also involved in,” Credit Union — based in Springfield, Mass., — and used a she explained. “Every time I ran across Jason and his team loan officer named Lisa Mish. “She’s actually a colleague of they carried themselves with such poise and professionalism my father’s,” Welch explained. “I chose to work with that [and] I knew I wanted to work with them when I started credit union because they don’t sell looking into real estate.” off mortgages to a third party, so I LaRose said that her mortgage knew who would have insight into my experience was a “breeze” and easy on mortgage file at all times.” her end after the initial steps of filling out Welch said that despite the a preapproval. “I applied for preapproval tumultuous market, Mish was online and a team member from NorthStar responsive and proactive, especially reached out to me right away telling me when it came to putting in offers. “Keep exactly what they needed,” she said. “I felt in mind that it was still pandemic like a lot of the work was taken off my hands times, where if you saw and liked a and I was never left guessing. After I was house you needed to put in an offer on under contract, my loan company did all the the same day,” Welch said. “Lisa was on work behind the scenes and I rarely had to top of helping us with letters of intent get involved, which was nice because there to each of the offers we made. And she were other factors of the purchase that was awesome with helping me get a needed my full attention like what I needed new preapproval when I changed jobs to flip the property.” during the process.” But what she found was that Welch says that he looked at 12 NorthStar’s connections also came with homes and put in an offer on four. her mortgage. “I’d say the familiarity He said each separate offer was between my loan company, Realtor, an emotional process and he was and contractor made the transaction devastated when the third house he so much easier. Going back to the small put an offer in on had sold. “It’s so easy town aspect, my Realtor and contractor to get discouraged,” he said. “Even actually knew Jason from NorthStar though the mortgage process itself was and they had worked together multiple straightforward, buying was incredibly times,” she said. “It was like I had drafted > Josh Welch, homebuyer difficult and stressful.” a team of professionals that seamlessly Welch said that even though Mish worked together to help me succeed.” was swamped with other borrowers, LaRose’s loan was unconventional, she always made his loan feel too, which was why it was crucial that her important. “I would 100% go back to her if I bought another transaction went smoothly. She applied for a HUD 203(k) loan house today, I wouldn’t do anything differently,” Welch which, according to HUD’s website, “enables homebuyers and affirmed. “Nowadays mortgages are online and don’t have homeowners to finance both the purchase (or refinancing) of a relationships. But with Lisa, it’s now a lifelong connection house and the cost of its rehabilitation through a single mortgage, instead of a transactional relationship.” or to finance the rehabilitation of their existing home.” Mish says that making time for Welch’s loan was difficult But LaRose said that if there was any difficulty with handling but not impossible. “At the time I worked with Josh, I had that loan, the NorthStar team didn’t seem to show it. “In my 50 loans in my pipeline,” she said. “I stayed up often til 2 situation, the window of time between going under contract and or 3 in the morning just making sure my customers were closing was nearly three months, at no fault of my loan company,” comfortable and secure. I’d be lying if I said I wasn’t feeling she said. “This was a trying time for everyone involved but the burnt out then — everyone was.” NorthStar team never gave up and stayed persistent with me.”
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“Nowadays mortgages are online and don’t have relationships. But with [my LO], it’s now a lifelong connection instead of a transactional relationship.”
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“I felt like a lot of the work was taken off my hands and I was never left guessing. After I was under contract, my loan company did all the work behind the scenes and I rarely had to get involved.” > Nicole LaRose, investment property owner
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HANDLING UNIQUE DEALS ason Verranealt, LaRose’s loan officer, says that LaRose’s loan situation was a unique one that his team helped her navigate at the littlest cost possible. “She found a HUD-owned property, which means that the previous owner had an FHA loan and defaulted on that,” Verraneault explained. “HUD has a $100 down program instead of the normal 3.5% down payment, and we piggybacked that with a 203K loan for all the rehab and renovations.” Verraneault says that with any customer, North Star’s goal is to get through all the tough paperwork and documentation
at the beginning. “We also try and touch base with the realtors and the customer at least once a week for updates, even if the update is that things are still going smoothly,” he said. “We even invested in tech that sends automatic text updates during loan milestones such as when the appraisal goes through. It gives our customers peace of mind.” For Mish, irregular loan or not, every borrower she works with wants the same traits out of her. “A customer’s main need is really knowing every step of their loan,” she said. “Whether it’s in the appraisal process or in underwriting, they want communication and more than that, they want to close the deal.” n
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DATABANK
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Tales From The 100-Acre Wood
Be more like Winnie and less like Eeyore to increase business
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BY ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
his year has been one from the pages of Christopher Robin. High inflation coupled with equally-lofty mortgage rates and rock-bottom housing inventory has had most loan officers feeling like Eeyore, all doom and gloom. But a lucky few have taken an existentialist perspective, like Winnie the Pooh discovering honey in the most unlikely of places. When they meet first-time homebuyers and people anxiously waiting for rates to drop before they make an offer, LOs might consider taking a different stance. Motivating potential borrowers, giving them the “inside”
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scoop to make them feel like they’re ahead of the game. “Avoid bidding wars!” one might whisper. Or, “Date the rate, marry the house!”
POSITIVE LINDA Fairway Independent Mortgage Senior Loan Officer Linda Davidson is a producing branch manager and loan originator in Garland, Texas, who has been in the business for 28 years. She carries a positive outlook. “In my opinion, it’s a phenomenal time to purchase right now because we can always refinance the rate but they’re not having to compete against multiple offers,”
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
Davidson says. Much of her time is spent mentoring LOs and helping them grow their business. When everyone else is down in the dumps, she lifts them up and out. “I grew up in government housing so to get to do this everyday is pretty cool,” Davidson points out. “There’s > Linda Davidson, so much joy in Senior Loan Officer, helping families Fairway Independent create that Mortgage homeownership.”
WORRY-FREE JERRY Jerry Schiano, CEO of Spring EQ in Radnor, Penn. tells borrowers that the decision to buy a home should be about their life and not the market. “I never pretend to be an economist that tells people where rates are going,” he says. “What I tell people is, it’s a good time to buy a house if you know where you want to live and you can afford the house, and you’re not worried about the house becoming a financial investment where it appreciates. You should buy a home to have a family, raise kids, or be with whoever you want to be with — your spouse or your dog … you > Jerry Schiano, shouldn’t buy a CEO, Spring EQ home because you think it’s going to increase in value.” Nobody really knows where mortgage rates are going now, do they? Economic analysts have their “crystal balls” and historical perspective, but this era is nothing if not unprecedented. “This is one of the most difficult markets most of the people in this business have ever faced,” Schiano says. “People are still shocked with the rates. There’s not a supply of housing. There’s not affordability. So for loan officers, they have to figure out a way to tough through this.” He tells LOs to offer their clients home equity. “You have all these relationships; go back to people and see if they love where they are or if they want to fix it up a little bit and finish
a basement, put on a deck,” Schiano says. “Most loan officers are not used to doing that. But I think that’s the product that the customers need now.”
RELATIONSHIP BRIAN “The biggest challenge that I think that we all face right now is just a lack of inventory and homes not being for sale,” says Brian Atallian, mortgage consultant at Pike Creek Mortgage Services in Newark, Delaware. “Right now, 85% of people have interest rates less than 4%, so it makes it very challenging for people to feel justified in leaving > Brian Atallian, and selling their mortgage consultant home to take on at Pike Creek Mortgage a 7.5% interest Services rate.” He’s trying to spend more one-on-one time with clients these days, staying transparent and advising them as to how they should proceed in this market according to their circumstances. “If they’re in a situation where they have to buy, it’s very challenging,” Atallian
You should buy a home to have a family, raise kids, or be with whoever you want to be with — your spouse or your dog … you shouldn’t buy a home because you think it’s going to increase in value. > Jerry Schiano, CEO of Spring EQ
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People are still shocked with the rates. There’s not a supply of housing. There’s not affordability. So for loan officers, they have to figure out a way to tough through this. > Jerry Schiano
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says. “Potentially being relocated for work, getting a new promotion, a new family member, a new child. Divorce is a big one as well. You’re going from two incomes to one income and trying to afford a new home.” He’s prioritized relationships with realtors, divorce attorneys, and financial planners for those very reasons. “They want to have a good referral partner and partnership with a good mortgage person,” Atallian says. “So I do that with them. But for the most part, my business is all referral based.” So are things really all that bad that an LO won’t ever recover, and should they consider a new line of work? Are these brave buyers doomed for all eternity? “Interest rates are certainly on the higher side right now, but the prices have sort of stabilized a little bit,” Atallian points out. “You don’t have as many offers and as many people paying cash and that sort of thing. These rates aren’t here forever and we can look to refinance at some point. Get into something now before prices start to change and continue to rise.”
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OUTSIDER JEREMY Since its founding in Washington, D.C. in 1907, the American Land Title Association (ALTA) has been an integral resource for title and settlement companies in home lending. VP of Communications Jeremy Yohe has been writing about the industry for close to two decades. > Jeremy Yohe, He offers LOs VP of Communications, an outsider’s American Land Title perspective Association (ALTA) looking in. “The ones that have been through the market ups and downs and understand the cyclical nature will come out probably even stronger after a down market,” Yohe says. “They’re the ones that have taken the proper steps to staff accordingly, look what’s going to be needed in the market two, five years down the road and meet those needs.” n
SMASHING
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CRYSTALBALL
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PR O D UCED BY NMP F OR T HE INT ERE ST F E AT U R I N G DAVID LUNA , PRE SIDENT OF MOR TG AGE EDU C ATOR S & COMPLIANCE T UNE IN E VER Y WEDNE SDAY F OR YOUR RE GUL ATOR Y UPDAT E .
Seeing A Different Opportunity Overcome the challenges of transitioning between lending sectors
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BY ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
eing the personal chef to an A-list family for over two decades might make for legendary Coq Au Vin and exclusive digs, but it doesn’t necessarily qualify one to command a five-star restaurant kitchen. Similarly, mortgage loan officers climbing between floors in the leaning tower of lending face a learning curve that could topple their whole operation. That is if they don’t have a solid support system and a willingness to approach new ideas and ways with an open and humble mind.
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“If you’ve been doing something a long time, you believe that is the only way to do it. Be open, do your research.” > Desmond Smith, chief growth officer, UWM
A CHANGE IN THOUGHT “Today we’re seeing a lot of people move around from one channel to the next. We’re seeing people go from real estate to mortgages, people who have never done mortgages join the wholesale channel; it’s been a vibrant amount of activity,” United Wholesale Mortgage’s Chief Growth Officer Desmond Smith says. His 32-year career in the mortgage business began in 1991 as an underwriter for the U.S. Department of Housing and Urban Development. He went on to run centralized and distributor retail for several large banks, including Wells Fargo, JPMorgan Chase, and Citi. Before coming to UWM, he spent four-and-a-half years as chief customer officer of single family business at Fannie Mae. “I ran retail for big banks my whole life. The transition from the primary mortgage side at a bank to the secondary mortgage side at Fannie Mae was an interesting transition,” Smith recalls. “It was very different from what I had previously done before, but it was a great learning opportunity regarding capital markets and servicing and how loans get purchased. That gave me a great understanding of how the mechanics and financing of the mortgage industry works.” Entering
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the wholesale sector at UWM was “eye-opening” for this industry veteran. “When you’ve been around a long time you have your belief system,” Smith says. “My belief was always, retail’s better, nobody should go to a broker … most of that was things you heard pre-crisis days.” There is a general consensus among retail mortgage lenders that the wholesale jump does not offer a support net. “That’s absolutely not true,” Smith argues, pointing to UWM’s technology, marketing and success track classes. “Wholesale is a much better place for an LO who is committed to this as a profession. That’s why you’re seeing the wholesale channel continue to grow.” Sometimes the “right” way one has learned and mastered isn’t the way one’s new boss likes it. Other times, a specific type of lender’s general principles and best practices are deeply different from those of another type. “Most of it is misconceptions,” Smith says of navigating this. “If you’ve been doing something a long time, you believe that is the only way to do it. Be open, do your research,” he encourages. “Don’t go off of what you heard or what you believe from 10 years ago. Things have greatly changed. If you’ve only ever done one thing that’s going to be what you know, but the reality is a lot of times that the facts are different.”
VIEW FROM THE TOP In an interview with NMP’s ‘The Interest’ anchor Katie Jensen following the Broker Brawl at Originator Connect 2023, NEXA Mortgage CEO Mike Kortas briefly touched upon helping LOs transition from retail to wholesale. “There are a lot of unexpected challenges,” Kortas said. “When somebody comes over from retail they’re going to need 90 to 120 days to get their broker legs under them. They’re coming from one login; now they have 200 logins. That’s 200 ways to submit a loan.” At one time among the top 1% of LOs nationwide, Kortas surrendered his own portfolio to build NEXA. “Ninety-nine percent of broker-owners are their company’s top producers. I don’t originate against my LOs anymore,” he said. “That was a painful day to give up that income, but I decided to build the best mortgage brokerage and not be the best loan officer.” Support for retail-seasoned LOs getting their feet wet in the wholesale space is “huge,” Kortas added. “You have an FHA loan and I have 70-some lenders who do it, so who do you choose? They’re like deer in headlights.”
A RECRUITER’S PERSPECTIVE Tony Caico began his mortgage career in 1997 with IndyMac Bank,where he rose to the management level before building and managing teams at the Royal Bank of Canada and Citigroup. After serving as an executive recruiter for Corporate Management Advisors for a few years, Caico founded the Affinity Five Search Group in 2017. Recruiting for banks and non banks, he’s had a first row seat to changes in leadership across the mortgage industry. “There’s been a lot of movement I’ve seen over the last 26 years. I think the mortgage business offers a lot of opportunities for people to transition to different sectors. I like to fashion myself as a career shepherd for people going though these things
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because I’ve gone through them,” Caico says. “Not only do the opportunities change — in many cases people’s skill sets change. Fortunately, the mortgage business affords a lot of that transition as long as your timing is right and you are willing to learn different things.” Over the last six months Caico has switched gears himself, to accommodate the changing landscape of the financial sector. When the road is impassable, find another route.
it’s mostly about putting consumers in a home,” Caico says. “I think our business offers a lot of flexibility.” He knows as well as any longtime mortgage pro that markets are cyclical. What goes up will indeed, come down. “The mortgage business always expands and contracts,” he says. “It will always come back; there’s always going to be jobs in the mortgage business, hang in there.” Many of those who have lost their positions in recent times were executives
“There’s a lot of intricacies to the mortgage business so there are learning curves regarding each individual position.” >Tony Caico, owner/founder, Affinity Five Search Group
“I was primarily doing mortgage executive work in the space but as margins shrunk a lot of those requests to fill jobs faded for me,” he explains. “So I transitioned back into production recruiting just to keep doing deals.” When Caico receives a job description from a company, he looks to match candidates’ experience with the responsibilities it entails. “Usually when you become a subject matter expert in one thing you want to stay in that realm. In the case of top executives, a lot of their skills are transferable,” he says. “I’ve seen successful executives go from mortgage lending to vendor to title to offshore support of the mortgage business.” While salespeople can move around fairly easily, those in loan manufacturing tend to stay put. “I’ve always found it best to stay in the lane of expertise from a loan manufacturing perspective because then you become an expert,” Caico says. “One could start as a processor and move into being a junior underwriter, then transition to an underwriter. There’s always a career path.” Strong communication skills are vital to any career movement in any industry. Ask the right questions and be open to the answers that come. “If you’re a mortgage career person and you know the business, in the end
and operations folks, according to Caico, who encourages those coming from the operations end to hone in on their sales skills, and for executives to consider their capacity to offer consulting services.
HAZING Forcing a new recruit to perform dangerous or humiliating tasks is not limited to Greek life on college campuses. In fact, 39% of employed Americans say they have suffered abusive conduct at work, according to the Workplace Bullying Institute. Complaints aren’t easy to collect when the market is challenging and jobs are at stake. However, there have been some well-publicized cases. More than two dozen employees of United Wholesale Mortgage made allegations of bullying and harassment earlier this year. A report alleged drug use, discrimination, and unwanted sexual behavior at the company, which denied the claims. Duration of employment was not cited as a factor in this case. Two former UWM employees are suing the company, alleging retaliation, sexual harassment, and other violations. The National Labor Relations Board is handling the case. “Most are amenable to people
transitioning,” Caico says of mortgage companies. “I have not seen any hazing, but there are different levels of morality in people. I think if people stay true to themselves and their values they’re not going to have any issues. Most people are welcoming if they believe your skill set is valuable to the company.”
LEARNING IS PART OF THE CURVE Most of the medium to large companies offer training programs and professional development to employees. NEXA puts its recruits through an academy program. Those that move forward go on to take three separate onboarding classes. E Mortgage Capital has a mandatory eight-hour session for all of its new LOs. UWM dedicates the first week to training and cultural immersion. “What we’ve been trying to ensure is that folks know there are so many resources out there for them,” Smith says. “We have folks here who are ready and willing and able to help them join a mortgage brokerage or start their own.” Jargon and practices vary among each type of lending sector, and the acronyms are extensive in this industry. “There’s a lot of intricacies to the mortgage business so there are learning curves regarding each individual position,” Caico says. “Depending on the skill set you have, there are some really great training programs out there.” Going from selling reverse to first mortgages has its trials, while entering the Non-QM space from conventional retail offers its own set of challenges. “If you did reverse mortgages and then become a mortgage broker who is going to do traditional first mortgages, the reality is you’re still working with consumers, so that ability to converse and build relationships and get referrals is the same,” Smith points out. “It’s just your options are different. Being an independent mortgage broker versus being in a captive retail environment you have so many more options to help that consumer.” Sometimes one has the choice of which channel to enter, other times it’s where the jobs are. “The key is to do your own research and then make your own decisions. Don’t go off of what you may believe or what you thought you knew.” n
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NMLS — Then, Now, And To Come Leaders reminisce, plan, and dream about the regulatory group on its
15th birthday
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BY ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
he organization that substantiates the existence of mortgage loan originators (MLOs) is officially a teenager. The Nationwide Multistate Licensing System (NMLS) is celebrating its 15th year since being founded by its operator, the Conference of State Bank Supervisors (CSBS). The legal system of record for mortgage licensing in the U.S., NMLS recently ushered in a new proposal to create uniform state licensing standards for the mortgage industry, and introduced a modernization initiative. The organization’s 15th birthday preparations were however, stunted by the loss of CSBS President and CEO John Ryan, who passed away unexpectedly on May 16, 2022. Officials are now reflecting on the events that led up to the creation of “The System,” how it has become paramount to the mortgage industry, and hopes for it in a few decades time.
WHERE IT ALL BEGAN “In the early 2000s, preceding the financial crisis, it became apparent that there were a lot of activities in the mortgage industry that really weren’t up to par,” CSBS President and CEO Jim Cooper says. “The way LOs were licensed was inconsistent throughout the country. In some cases bad actors were getting moved from one state to another.” Cooper was on the CSBS Board of Directors at that time, when predatory lending, fraud, abusive practices, and the consolidation of large banks were all cause for distress. “Leaders of the organization really recognized the need to increase the professional standards for mortgage loan originators and have a more comprehensive approach to supervision,” he says. “One of the ways they approached that idea is through this multi-state licensing system we now call the NMLS. It really was in response to a need from the states.” But not everybody was on board with
> Jim Cooper, President and CEO, Conference of State Bank Supervisors (CSBS)
the proposal right away. In fact, it faced resistance from state regulators and large companies with multi-state operations. By 2005, the CSBS had formed two task forces to examine the legislative and regulatory steps that would need to take place in order to make NMLS a reality. A group of industry leaders was mustered to provide input in the process. Development meetings continued for a full year as officials mulled over funding, state adoption, and system fees. “We had a lot of opposition and we had to convince our members, consumer groups, industry groups, Congress, and others that this was a good idea,” Gavin Gee, former CSBS chairman and retired director of the Idaho Dept. of Finance said in “The Making of NMLS,” a podcast series the CSBS published in July. Nine guests included Bill Matthews, former executive VP of CSBS, and the late Ryan, whose recording was made before his passing. Matthews in particular recalled how an industry blacklist was being widely circulated before NMLS, fanning out the dirty deeds of LOs with criminal records and bad reputations.
FUEL TO THE FIRE The financial crisis that began at the end of 2006 was “a galvanizing event”
for NMLS, according to its founders. Residential construction began declining in 2006. By 2007, mortgage asset losses strained financial markets and what is now known as the Great Recession came to be. In July 2008, Congress enacted the Secure and Fair Enforcement for Mortgage Licensing Act, (SAFE) making it illegal to operate as a residential mortgage loan originator without a license. Within 18 months of the act’s passage, every U.S. state had adopted the NMLS. “It really raised the standards nationally for MLOs,” Cooper says. “It impacts hundreds of thousands of LOs in the country and sets a standard for professionalism that is important.” Licensees were suddenly required to pass a criminal background check and demonstrate that they possessed the character and financial fitness to take on the responsibilities being an MLO entailed. Applications and their statuses became public knowledge, as did regulatory actions and consumer complaints. “When I first learned about what CSBS was doing I thought, Wow! This is really revolutionary,” CSBS Executive VP of Products and Solutions Vickie Peck recalls. A mortgage industry veteran, Peck worked with MLOs and companies obtaining licenses in each state. “What a time saver first of all; to be able to apply online, fill out an application and submit it to one state or all 50 states for that matter,” she says. “Prior to the passage of the Safe Act, some states licensed MLOs and others didn’t, so someone could commit a bad act in one state and other states would never know. NMLS has become a really useful tool and from an industry standpoint it’s really streamlined the process.”
SINCE THEN Bob Niemi, chairman of the American Association of Residential Mortgage Regulators’ Industry Advisory Council, says the coordination of systems and verifications across the U.S. had the greatest impact on business as a whole. “Where it has gone from those initial
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days to where it is now — to allow mortgage originators and company owners to apply online and get their licensing information entered and their background checks and credit reports verified; to allow their licenses to be issued by multiple states at the same time is pretty dramatic,” says Niemi, who works as director of government affairs for Weiner Brodsky Kider PC. “It is not without some challenges but it has grown over the years and come so far from those first five years.” Residential lending before it was basically the Wild West. “Today — compared to 15, 20 years ago — the mortgage industry is much more standardized and I think consumers can have confidence in the process and the regulation and supervision of MLOs and the companies that employ them,” Cooper points out. He and most other industry professionals don’t know what the mortgage industry would look like today if NMLS or something like it never existed. “It is hard to imagine where we would be without it,” Cooper says. “It has a high public benefit and has brought a much more streamlined process to what can be a complicated endeavor.” Since it was born, several improvements have enhanced The System. “Electronic surety bonds can be managed through NMLS now and there’s no notary seal required anymore; that streamlined things,” Peck explains. “The temporary authority to operate was a big lift. We also moved the environment from an on-premise base to the cloud. That allows us to enhance, improve and modernize the system more efficiently, which we’re in the process of doing now.”
A SIGNIFICANT ASSET CLASS As of the second quarter of 2023, Americans owe $12.01 trillion on about 83.4 million mortgages, according to the Federal Reserve. That accounts for 70.6% of all consumer debt in the U.S. “The stream of commerce associated with mortgage loan origination and investment is really important to the economy,” Cooper says. “State regulators take the responsibility of licensing and supervising nonbanks very seriously. Consumer access gives people
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the opportunity to go in and verify their MLOs are properly licensed in the states where they’re doing business and don’t have enforcement actions against them. It provides a really important service to protect consumers and preserve the
“It is hard to imagine where we would be without it. It has a high public benefit and has brought a much more streamlined process to what can be a complicated endeavor.” > Jim Cooper, President and CEO, CSBS
functioning of the market.” The CSBS Board of Directors has been focused on establishing common standards and practices to improve efficiency in regulation and supervision. This is a process members refer to as network supervision. “We have a mandate under the SAFE Act to be the provider for MLO licensing,” Cooper adds. “We want to prioritize that work and make as many improvements as possible.”
all be improved,” Peck says. “User feedback is really important to us, and so understanding the experience, engaging users as we’re making changes will happen. We’ll be doing some outreach to the industry and will rely on originators and their companies to give us feedback on if the improvements we’re making are going to be of value or if we need to look at things a little bit differently. We’re starting that work this fall.” This is not the first time the CSBS has launched a modernization initiative for the NMLS and it may not be the last. “I think coordinating all the regulator and industry requests across not just mortgage but all the other license types supported by the NMLS is a very big project,” Niemi points out. “The biggest challenge is just trying to coordinate all the different internal projects and components that make up what we see as users as the NMLS.” One of the first focus areas will be addressing “pain points” in the system. These are issues that keep its call center ringing, like the password reset and self help functions. “We will be working on development, but nothing will go into production until next year. That’s when users can actually start to see changes to the system,” Peck says. She and Cooper laugh when they ponder what NMLS will look like in 20 years. “The goal would be automatic review and approval,” Peck says. “We’re not there yet but I do think the enhancements we’ll be making over the next few years will get us much closer to that.” Another goal is to make the system more data-driven to support state regulators and others. Improved flexibility, capability, user functionality, efficiency, and transparency will all play a role in this undertaking. “Part of the modernization effort is to preserve what works well and improve the things we can,” Cooper says. “We don’t want to change what works.” n
MORE TO COME
State financial regulators, commissioners,
An NMLS modernization initiative is underway, with changes expected as soon as 2024. “The look and feel, navigation, will
on NMLS as well as the history and future of
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policymakers, and CSBS staff offer more insights finance in the CSBS podcast, Simply StatedAll Things Finance. Check it out at https:// simplystated.csbs.org.
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The Burnout How to balance speedily closing loans, being on call 24/7
BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
“V
isualize a blind person trying to juggle,” “coffee in the morning and a stiff drink at night,” and “Fireball” were some of the answers to the question of how loan officers manage to juggle work-life balance in the industry. The biggest takeaway? It’s not easy. As negative as it may sound, the current market is taking a toll on loan officers, and burnout is real. Balancing loans and leisure shouldn’t be impossible, but every loan officer works at a different pace and mode. Some prefer integrating their work and home lives. Others prefer a clear separation between working and home hours to clear their
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heads. And with the industry pressure to always be available to beat the competition, oftentimes mental health is the lowest priority. Maria-Christina Stewart — a clinical psychologist based in California — says that she speaks to a lot of professionals who struggle with compartmentalizing their personal lives and business as separate entities. Stewart, aside from offering counseling services, offers coaching programs to help clients find meaning in their lives, something that she notes lacks from those in the financial services industry. “If people prioritize their work and it is prioritized at the expense of other things, then, of course, it takes a toll on mental health,” Stewart
Juggling Act — and living day-to-day lives
said. “But if you balance work with what is meaningful to you — not what the internet tells you is meaningful — that balance tends to help mental health and productivity … Having an imbalance leads to burnout.”
WIDESPREAD TOLL
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urnout, Stewart says, takes a toll on all aspects of life, such as connections with friends, family, and romantic relationships, as well as health. And it’s something that has become even more exacerbated following the COVID-19 pandemic. “After COVID, there’s been an increase in stress and that hasn’t stabilized
yet,” she explained. “What I hear very often in my day-to-day life is people trying to figure it out. A lot of them are almost too burnt out to have the resources to do something about it. Or they’re stressed about money because of the current economy. Financial pressure drives them to work, work, work, but also creates burnout.” Stewart notices a dichotomy between those in the industry wanting and needing to work to provide for their families and be available to their customers, but also wanting to explore their interests and relax. “We see challenges in financial services careers because the work can bleed into so many hours of the day. It’s hard to have hard stops,” she said. “If you’re not going to allow
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yourself to have a break, what impact does that have on you? More time on the computer takes away from time with nature, time with family, and time focusing on health If we’re only interacting with people online, there won’t be a buffer for mental health long term.”
PUTTING HEADSPACES INTO PERSPECTIVE
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onny Fowler knows this to be true in his almost three decades in the industry. Fowler has worked as a corporate development manager for NRL Mortgage and as a senior vice president for Hancock Mortgage Partners in the past and has, like Stewart, dabbled in coaching. Fowler has observed loan officers that he’s worked with get into a negative headspace. He explained that there’s a learning curve, especially for newer LOs, who are experiencing economic woes impacting their work and, inevitably, their mental health. “There’s lingering impacts of pandemic and economic crises, massive inflation … it’s a combination of a number of things,” he explained. “[For] most of the people that I talk to, it’s not just one thing. There are not as many transactions happening and they can’t adjust to the business cycle.” Fowler says that coaches and leaders like himself have a responsibility to bring LOs up during this time. “I’m seeing that people need leadership and encouragement and they need to hear from people who have been through this before as to how to navigate through these times,” he said. “We are not going to crash. We may hit a speed bump, but it’s a temporary thing.” To understand the current barriers loan officers face, Fowler says, you have to consider the experiences of LOs from the past four to five years. “Not everyone remembers 2008 because not everyone was in the industry then,” he said. “We as coaches and leaders in this industry need to remember that some LO just turned 24 yesterday and doesn’t have the same experiences we do. I got into this business in 1994 and had no idea that it wasn’t a good time to get into the business. Some people who joined in 2018 or 2019 didn’t realize the numbers were starting to drop.” Fowler says that the sudden drops from the extreme highs of 2020 and 2021 left many LOs in the dust. And even LOs who are as seasoned as Fowler are pessimistic about rates not dropping and inventory returning. “They say that they wouldn’t get into the business at this time. But I would look towards people who have a more positive attitude and say things like ‘People always buy houses’,” Fowler explained. “I think it’s necessary to be in times like this or else you don’t know when times are good and you don’t know how to plan for when we go through the next business cycle.”
THE PHYSICAL IMPACT
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tewart claims that stress will only overtake the body and result in physical symptoms if a person thinks it will. Basically, she says that she’s seen clients almost manifest stress having an impact on their moods and physical well-being. But research shows that stress plays a role in various diseases, such as those to do with the gastrointestinal, cardiovascular, and immune systems. A study from the National Library of Medicine found that “the harmful effects of stress may receive more attention or recognition by an individual due to their role in various pathological conditions and diseases. … for example, hormones, neuroendocrine mediators, peptides, and neurotransmitters are involved in the body’s response to stress.” For Jay Houck, this was the case. Houck’s been in the financial services industry since 2004, first as a Realtor and then as an LO. And he also serves as a pastor. He says that over the last two years, financial stress — for both him and his livelihood and for his clients — has taken a toll. “I started having grand mal seizures because I felt like I had no balance in my life,” he explained. Houck says that a big move from San Bernardino, Calif., to Chapel Hill, Tenn., was another stressor that became exacerbated by rising interest rates and the market dropping. “I hadn’t mentally, emotionally, or spiritually prepared for > Jonny Fowler, Vice President that to happen,” he said. “I of Business Development, felt trapped. I always laugh American Financial Network because there’s so much freedom [as an LO] but there’s really not. Like you have the ability to work from home but you don’t have the freedom to not answer that Friday 8 p.m. phone call.” Houck reached his breaking point when he realized that even though he felt chained to the phone, he wasn’t being productive at work. He decided to hire a life coach about six months ago. “He’s been a saint for me bringing balance back to my life and setting boundaries,” he said. “Now, I have a calendar with certain spots allotted for going out to meet with
“I’m seeing that people need leadership and encouragement and they need to hear from people who have been through this before as to how to navigate through these times. We are not going to crash. We may hit a speed bump, but it’s a temporary thing.”
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“I always laugh because there’s so much freedom [as an LO] but there’s really not. Like you have the ability to work from home but you don’t have the freedom to not answer that Friday 8 p.m. phone call.” > Jay Houck, Senior Loan Officer, Arbor Financial Group
Realtors, going to open houses, times to work on loans and new customers, and time to be with my family.”
THE GLASS HALF-FULL
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he expectations of always being available have caused some LOs to have control issues and difficulty fully disconnecting. For Crown Home Mortgage Branch Manager Paula Huhn, gone are the days of having a free weekend or a sick day. “You are on call seven days a week if you want to stand out and show that you cater to your clients and have great services. You don’t get paid either if you don’t get that deal,” she said. “Nowadays there’s the expectation of ‘Oh, of course you can work from
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home!’ I had COVID twice and logged on to all of my meetings … because I felt like I had to.” Huhn says that the mortgage industry as a whole has glorified the overworking hustle culture. “Every day I see people bragging about working overtime into the evening on Facebook. And if you’re in sales it’s likely that you have a Type A personality, so more than likely you’re comparing yourself to the person who is doing more and feeling guilty and worried about your relationships,” she explained. “There’s definitely imposter syndrome. There’s the pressure of knowing that you are dealing with someone’s home and knowing that the realtor you’re working with has the potential to send you more deals. There’s a listing agent who also has expectations for you.”
“We’re not brain surgeons or curing cancer but it’s still important to somebody. It’s a roof over their heads or their entire life savings and they’re trying to get themselves in a better situation. It’s a lot of pressure, and as a LO you get dished a lot of blame.” > Paula Huhn, Mortgage Branch Manager, Crown Home
Huhn recalled that there have been moments when she’s curled into a ball and cried in her bed about a difficult loan. “Sometimes I wonder why I’m even doing this,” she admitted. “We’re not brain surgeons or curing cancer but it’s still important to somebody. It’s a roof over their heads or their entire life savings and they’re trying to get themselves in a better situation. It’s a lot of pressure, and as a LO you get dished a lot of blame.” Because of the pressure to compete and essentially “have it all” to be a successful LO, Huhn doesn’t believe in a true work-life balance. She tries to blend her work and home lives together in an attempt to assuage her mental health. “You can’t balance work and life, but you can harmonize it with time management. I even
hired a business coach to learn those skills,” she said. “I’ve also learned that it’s important to create a hard end to your day to transform from work mode to home mode.” So how does she do it? Huhn says that video gaming, reading, and incorporating small moments of self-care throughout the workday are what help. But it’s not what really keeps her going. “I stay in this industry because it’s what I know and for all that is bad, the good outweighs it,” she said. “Seeing a buyer at the closing table … it’s a rush. Meeting wonderful agents adds a social aspect that fills my cup. I get a rush from figuring out if I can get a loan to work. And I love teaching new LOs the ropes. These aspects are uplifting and fulfill me.” n
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COVER STORY
Nailing Down Reliable Real estate agents are constantly hounded by LOs for referrals,
R
BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
ealtors are bogged down with referral or a loan officer has versatility when it comes to hairy loans requests. And in a sluggish market where is extremely important,” he said. “It’s also important that deals are hard to come by, they’re drowning in they resemble a similar work ethic that I have. A lot of buyers dismal leads and are attempting to weed out find their LOs through their realtor and that makes them an promising loan officers. extension of me and my work.” Of course, in the fast-paced and competitive world of real estate, collaboration between real estate and PROUD TO PARTNER WITH mortgage professionals is key to success. Real estate agents and loan officers often work together closely to help clients here’s a reason that “referral partnership” involves navigate the complex process of buying a home. Inevitably, “partner” as a part of the phrase. Essentially, Pappas says, these professionals end up forming close relationships that that’s what real estate agents are seeking out. “I’m looking symbiotically benefit the other’s business. And loan officers know this to be true. Real estate agents are their go-to referral base and confidants when it comes to finding borrowers. But many LOs have taken to bogging down agents with dry marketing pitches, incessant phone calls, and requests to talk things over at the local coffee shop. This excessive hounding has left many real estate agents feeling frustrated and overwhelmed — especially when it comes to determining > Perry Pappas, real estate salesperson, Coldwell Banker who deserves their time. Perry Pappas, a real estate salesperson for Coldwell Banker, says that he gets several messages per day for LOs who work like Realtors,” he said. “[I want] someone who from loan officers trying to pitch him. “I constantly am getting adds value to the deal, that’s going to have your back, someone who told that [LOs] could help me with postcards and marketing is going to work like a realtor in the sense of being accessible on materials or with open houses, but I don’t need help with weekends … and that means being accessible to and staying in touch that,” Pappas explained. “What I’m really looking for [is loan with clients. Not everything can wait until Monday morning.” officers] to pitch … the products they offer and the knowledge So what makes Pappas a proud partner? He says that they have about those products.” product knowledge and being proactive during the transaction That’s why for Pappas, reputation matters for both the are imperative. “I’m looking to see if they’re aggressive on fees, individual loan officer and their company. “Not every loan rates, closing costs, and trying to get [borrowers] into good is a 30-year with an 800 credit score. Knowing that a bank programs, not just to benefit their back end,” he said.
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“What I’m really looking for [is loan officers] to pitch … the products they offer and the knowledge they have about those products.”
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
Realtor Relationships but stand out by demonstrating success
Brian K. Lewis, a luxury real estate agent for Compass Real Estate, also has high expectations as to how a loan officer should approach him. Being a Manhattan agent, Lewis says that he looks for loan officers who can keep up with his fast pace and help him iron out issues in the closing processes. “We’re in sales just like loan officers are,” Lewis said. “I’m always looking for shortcuts to success … the LOs that I love are no-nonsense, productive, they will tell you quickly in three bullet points or less how they can help you, they’re connected to the underwriters, and they can cut through the BS when there’s a problem.” Lewis says that he gets pitched by loan officers weekly about what they can offer for his business. But Lewis says that he doesn’t want marketing materials or open house adornments; he wants an advisor. “I’m looking for an LO who is immensely productive who is easy to reach and communicate with, and [has a] can-do attitude,” he said. “You want to be able to tell [an agent] quickly a story or two about how you personally saved a deal because of the way you work.”
he’s tired of getting weekly calls from loan officers asking to get coffee with him. “I tell every LO who calls me ‘you first,’” Cochran said. “Instead of calling me for my business, give me a call when you have a preapproved buyer in my area that is unrepresented by a realtor. First, we try, then we trust.” Cochran says that the first LO to approach him with an unrepresented buyer is someone that he still uses today. That was four and a half years ago, and since then, Cochran and the same LO have continued a working, reciprocal relationship. But aside from getting business from LOs, Cochran says that he also looks to see if LOs are doing education for their audience
“You want to be able to tell [an agent] quickly a story or two about how you personally saved a deal because of the way you work.” > Brian K. Lewis, luxury real estate agent, Compass Real Estate
PROVING VALUE
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eal estate agents have reiterated that they don’t want flyers, balloons, or fancy pens from LOs. What they want is a smooth closing and for a loan officer to provide them with something of value. Lewis says that he constantly goes to the same mortgage broker, Sari Rosenberg from Citibank, for his deals. “Sari always asks what she can do for me to prepare me for the weekend,” he explained. “[She] tells me about issues, has a depth of knowledge, fixes problems, and, if she can’t help me, aligns me with the best people for the deal.” Sean Cochran, a broker and realtor at eXp Realty, says that
in some form. He wants to see them putting themselves out into the community and providing some form of useful content. “You see realtors on social media all the time. But borrowers should really be going to loan officers first, but it’s not the loan officer that they’re seeing first on social media,” Cochran said. Cochran formerly served as a mortgage company recruiter and as a loan officer, so he knows that expectations are high for the average LO from everyone in the industry. “The LO always gets blamed for everything,” he said. “A loan officer’s job is hard. If the deal falls apart, the LO gets blamed. It’s a thankless job.” n
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023 |
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LENDERS BEST MILITARY LENDERS 2023 BEST MILITARY2023
SPECIAL AWARDS SECTION
F
or those lenders who work with military members and veterans, it’s not just about profit and losses. Rather, it’s an opportunity to serve the heroes who served all of us. For many lenders, finding homes
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2023 for these heroes is the most meaningful part of their careers. In the following pages, help us celebrate those lenders who go above and beyond to serve military members, their spouses, and veterans. ★
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2022
2023 BEST MILITARY LENDERS
ACADEMY MORTGAGE CORPORATION Draper, Utah
Company CEO/ President: Adam Kessler States Licensed: All States except New York Total VA Loans Closed in 2022 by lender: 1,726 Why does this lender serve those who serve to protect?
What contributions is this lender making to the military community?
At Academy Mortgage, our vision is to Inspire hope, deliver dreams, and build prosperity, and we are committed to serving and lifting others, whether by helping families achieve homeownership through our products and services or by serving those in our communities in need. We strive to give back to the service members and veterans who have given up so much for our country. As a company, we recognize our responsibility to give back to these service members, their families, and their communities.
Service is at the heart of the culture at Academy, and many of our branches across the nation are committed to supporting campaigns that support our troops and serving active service members and veterans. We offer multiple VA products to serve the military community and help them attain homeownership. ★
Why is this lender the best at supporting the military/military borrowers?
At Academy, we believe that the American Dream is built upon sustainable homeownership. We recognize that what we do has a noble purpose and that we exist to help make homeownership a reality for as many people as possible, especially those who have served or are currently serving our country. Academy’s mission is to create life-changing experiences through lending, and our branches are committed to helping active service members and veterans achieve the life-changing experience of becoming a homeowner.
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2023 BEST MILITARY LENDERS
FAIRWAY INDEPENDENT MORTGAGE CORPORATION Madison, Wisconsin
Company CEO/President: Steve Jacobson, CEO States Licensed: All 50 states Total VA Loans Closed in 2022 by lender: 10,560 Why does this lender serve those who serve to protect?
What contributions is this lender making to the military community?
They fought to protect the American Dream. We believe that it’s our duty to help them live it and, furthermore, to find and fill the needs of those who sacrifice to protect the very freedoms we enjoy each day. The commitment to serving veterans goes beyond just words. Recognizing the sacrifices made by veterans and first responders, Fairway established the American Warrior Initiative (AWI), a nonprofit supporting these heroes and their families. A remarkable aspect of this is that Fairway covers 100% of the administrative costs, ensuring that every dollar raised directly benefits veterans, first responders, or non-profit organizations.
Since its inception, the American Warrior Initiative has demonstrated an impressive impact. In the year 2022 alone, AWI managed to place an astounding 47 service dogs in the hands and hearts of veterans and first responders in need. This achievement added to the remarkable milestone of surpassing 300 service dogs placed, an emblematic testament to the tangible change Fairway is driving within the veteran community. The impact of AWI goes far beyond service dogs, as it extended its reach through a spectrum of initiatives. In 2022, the organization provided $25,000 in gift cards, offered 90 grants, and contributed a substantial $127,000 to other non-profits that share the vision of supporting veterans and their families. Recognizing the unique challenges and experiences of veteran employees, Fairway goes the extra mile to create a supportive workplace environment. The company established an Employee Resource Group (ERG) tailored specifically for veterans within their workforce. This initiative fosters a sense of camaraderie among veterans and serves as a platform for sharing experiences, insights, and support. ★
Why is this lender the best at supporting the military/military borrowers?
When it comes to financing, Fairway Independent Mortgage proves its dedication by providing VA financing options in all 50 states. The numbers speak volumes about their commitment: their loan officers achieved a remarkable feat by funding an impressive $4.1 billion in VA loans in the year 2022. This figure not only demonstrates Fairway’s expertise in VA financing but also highlights the trust that veterans place in their services. Another powerful expression of Fairway’s dedication is the observance of RED Friday. Every Friday, Fairway employees proudly don RED Friday shirts and attire as a collective gesture to “Remember Every Defender.” This small yet impactful act showcases the company’s unwavering respect and appreciation for those who serve and protect.
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2022
2023 BEST MILITARY LENDERS
PENNYMAC Westlake Village, Calif.
Chairman & CEO: David Spector President & Chief Mortgage Banking Officer: Doug Jones States Licensed: Licensed in all 50 states. Total VA Loans Closed in 2022 by lender: 83,648 units in 2022 Why does this lender serve those who serve to protect?
What contributions is this lender making to the military community?
As a top mortgage lender in the country, Pennymac has serviced over 813,000 lifetime loans through our VA Home Loan Program to help our nation’s heroes achieve homeownership. We are a proud supporter of our veterans and military families and recognize that their commitment, contributions, and sacrifices are what upholds our nation. Our 4,000 team members are dedicated to honoring our veteran and active military communities through services and support that go the extra mile and are grounded in our core values to be: accountable, reliable and ethical.
Pennymac is honored to extend our support beyond the VA loan program by promoting the recruitment of active, reserve, veteran and retired military employees. We work with veterans groups such as DAV/ RecruitMilitary to help us actively recruit America’s highest-quality talent. Our work with these groups allows veterans to continue developing their skills and expand their experience in a customer-centric environment that emphasizes high ethical standards, open communication and excellence. Additionally, we believe that creating a sustainable, diverse and inclusive vendor base may support business development in our communities. Our outreach efforts were launched to help us identify vendors that are at least 51% owned, operated and managed by underrepresented groups such as service-disabled veterans, among others. In support of our prospective buyers, Pennymac also provides resources, such as the Military Housing Assistance Fund and the Veterans Affairs Specially Adapted Housing grant program. ★
Why is this lender the best at supporting the military/military borrowers?
In 2022, Pennymac launched an enterprise-wide volunteer initiative with Operation Gratitude, a non-profit dedicated to providing hands-on opportunities to give thanks to our active military, veterans, and first responders. Pennymac team members across the nation volunteered their time to help assemble care kits for our service members. Each year during National Veterans and Military Families Month, Pennymac celebrates our service members through activities designed to thank our reservists, veterans, and military family members. In 2022, we also partnered with our SERVE (Supporting and Engaging Reservists and Veteran Employees) Business Resource Group to sponsor a Virtual Veterans Day Celebration, which included a moment of silence, a Presentation of the Colors ceremony, the recital of the Pledge of Allegiance, and a special message from the President and CEO of Operation Gratitude. To express our appreciation while encouraging our employees to stay active, we also hosted a runPennymac: Veterans 5K Challenge. Hundreds of employees across our office sites participated. As a result, we provided charitable donations to Operation Gratitude and Wounded Warrior Project.
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2023 BEST MILITARY LENDERS
SUPREME LENDING Dallas, Texas
Company CEO/President: Scott Everett States Licensed: All 50 states. Total VA Loans Closed in 2022 by lender: 1,702 Why does this lender serve those who serve to protect?
What contributions is this lender making to the military community?
Supreme Lending is honored to serve our country’s military personnel, veterans, and their families with a wide range of mortgage programs to achieve their dream of homeownership — in the country they served and sacrificed to protect. Their job is the most honorable and difficult service in the world and is oftentimes spent away from home for long periods of time. There’s no one more deserving to have a place to call their own than those who have served.
Supreme Lending offers VA loans including the organization’s programs such as the VA Renovation loan that provides 100% financing to fund both the home purchase and improvements for eligible buyers. Additionally, Supreme supports local organizations dedicated to giving back to the military community, including Heroes Ranch, a recreational retreat that provides accessible outdoor activities, amenities, and fellowship for disabled Veterans and their families. ★
Why is this lender the best at supporting the military/military borrowers?
Supreme Lending is privileged to offer a variety of affordable and flexible mortgages for military homebuyers and homeowners, including VA loans. Many times, veterans and active-duty personnel may not even be aware of the types of home loans they could be eligible for, which is why Supreme focuses on educating them about their mortgage options. In 2022, Supreme produced $630 million in VA loan volume to serve the Veteran and military communities.
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2022
Trailblazers. Visionaries. Leaders. If these words come to mind when considering your ideal candidate for Mortgage Lending Women of Inspiration, then get your nomination in and show your support for today’s female leaders in the mortgage profession.
W O M E N O F I N S P I R A T I O N
The March 2024 issue of National Mortgage Professional Magazine, will feature a special section highlighting Mortgage Lending Women of Inspiration.
Submission deadline: Friday, December 1, 2023
nmplink.com/woi
ORIGINATORS BEST MILITARY ORIGINATORS 2023 BEST MILITARY 2023
SPECIAL AWARDS SECTION
I
2023
n the following pages, help us celebrate these originators who go above and beyond to serve military members, spouses, and veterans. For some of these originators, it’s about continued service as military veterans. For others, it is a means for paying tribute to family members who have served — some making the ultimate sacrifice. Originators who work with our active duty and veteran military members understand that finding homes for our heroes is no small task. While not
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all originators understand how to work with our veterans and service members, for many, finding homes for them is the most meaningful part of their job. We highlight two originators who have gone above and beyond for our heroes and their families. Those who serve the men, women, and families who put so much on the line to protect our freedoms and who have sacrificed their lives for our home and our country. ★
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2022
2023 BEST MILITARY ORIGINATORS
TANJA ALLEN
ALONA HAYES
FAIRWAY INDEPENDENT MORTGAGE CORP
SUPREME LENDING
Harker Heights, Texas
Total VA Loans Closed in 2023 by originator: 30
Loan Officer
Branch Manager
Lawton, Oklahoma
Total VA Loans Closed in 2023 by originator: 94 Why does this originator serve those who serve to protect?
Tanja has a heart for serving those who serve. Her dad is a veteran, and she understands the sacrifices of service. She has lived and worked near a military base and served active duty military, their families, and veterans for over 20 years. The more stories she hears, the more her desire to give back grows — and she is great at it! Why is this originator the best at supporting the military/ military borrowers?
According to those who work alongside Tanja, having her in your corner means you have the best advocate and helpmate. She truly fights for her clients and has a loyal following of veteran clients and real estate professionals because she doesn’t just do loans, she takes steps that others won’t to help get veterans into homes, helping them with credit and, understanding and working through challenging loan scenarios. She is an absolute master of her craft. What contributions is this originator making to the military community?
Tanja and her team are avid supporters of the non-profit American Warrior Initiative, raising awareness and also funds to give back to Veterans. You can visit her Facebook page at Team Tanja L. Allen and see where she spends most of her time. She’s actively serving Active Duty Military, Veterans and their families, attending closings, meeting with them to go through financing, and helping them to achieve their goals of homeownership. ★
Why does this originator serve those who serve to protect?
Alona has been serving the military community for more than 35 years — the first 21 years being a military spouse, so she understands first-hand the trials and tribulations of military life. VA loans have become second nature to Alona and being able to originate them allows her to meet military families’ unique home financing needs. In 2022 alone, Alona originated $6.4 million in VA loan volume. She takes her service to a personal level through volunteering. Why is this originator the best at supporting the military/ military borrowers?
Alona supports the military on all levels. For example, when her local base was on lockdown, she rounded up donuts from a local shop to donate to the gate guards who were working 24-hour shifts. When her husband’s unit received a two-day notice to deploy overseas, she drove and delivered food to their headquarters as they weren’t allowed to leave. These are the types of acts of kindness she lives by on a personal level. What contributions is this originator making to the military community?
Alona has been awarded the Order of Molly Pitcher, which recognizes exceptional individuals who have voluntarily contributed in significant and meaningful ways to the U.S. Field Artillery Community. She always tells her borrowers that she is around after the fact if they ever need her, and she lives up to that promise. For example, when a military family’s VA loan had to wait 90 days to close, Alona opened her home to them. ★
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S P E C I A L A D V E R T I S I N G S E C T I O N : NO N- Q M LE ND E R D I R ECTO RY
COM PA N Y
A R E A O F FO C US
STAT ES L I CENSCED
WEB SI T E
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
Champions Funding
Mission Driven Non-QM + CDFI Wholesale Lender
AZ, CA, CO, CT, DC, FL, GA, HI, IL, IA, MD, MI, NJ, NC, OR, PA, SC, TN, TX, UT, VA, WA
champstpo.com
LoanStream Mortgage
AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, KY, Home Loans
LA, ME, MD, MA, MI, MN, MT, NV, NH, NJ, NM,
loanstreamwholesale.com
NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, WA, WI,
Newfi Wholesale
DSCR, Bank Statement, 1099, Asset Depletion, Buydowns, Full Doc Non-QM
AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, WA, WV, WI, WY
newfiwholesale.com
Quontic Bank
Quontic specializes in nontraditional borrowers.
All 50 U.S. States
quonticwholesale.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
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
S P E C I A L A D V E R T I S I N G SSPEECCTI A I OL NA: DWHO D IOL R ECTO V E R T LE I S ISA N GLE S ELE C T ND I O NE: RWH E SALRY E L E N DE R DIRECTORY CO MPA N Y
SP EC I A LT Y/ N I C H E
STAT ES L I CENSCED
WEB SI T E
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
First National Bank of America
Non-QM
All 50 U.S. States
fnba.com/mortgage-brokers
Newfi Wholesale
DSCR, Bank Statement, 1099, Asset Depletion, Buydowns, Full Doc Non-QM
AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, WA, WV, WI, WY
newfiwholesale.com
S P E C I A L A D V E R T I S I N G S E C T I O N : OR I GI NATO R TEC H D I R ECTO RY CO MPA N Y
A RE A O F FO C US
WEB SI T E
wemlo
Loan Processing
wemlo.io
Zero 1 Solution LLC
Software
1smtg.com
S P E C I A L A D V E R T I S I N G S E C T I O N : AMC D I R ECTO RY
CO MPANY
AR E A OF FOCU S
WE B S ITE
ACT Appraisal, Inc.
ACT Appraisal is a nationwide AMC focusing on residential appraisals
actappraisal.com
Class Valuation
AMC
classvaluation.com
PCV Murcor
Nationwide Real Estate Valuations Management — Appraisal Management Company
pcvmurcor.com
SingleSource Property Solutions LLC
Appraisals, BPOs, AVMs, Hybrid Valuations, and Value Reconciliations
singlesourceproperty.com
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FACEBOOK THOUGHTS
NICK ROBERSON
Jackie Chan, The Blues Brothers, And Fonzie Meet The Matrix
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T
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:
Nick Roberson
hat awkward moment when a zombie is looking for brains and walks right by you. ••• A good way to get out of a conversation is to take off one of your socks and hand it to the person talking. ••• One of my happy places. “Blast From The Past.” After a pit stop in the ‘80s, I ended up hanging with the Fonz in the ‘50s. ••• All of us are a little weird. Some of us are just honest about it. ••• I was dragging my empty garbage bins back in this morning, tripped over the curb, did a straight-up Jackie Chan tuck-and-roll, and ended up back on my feet. My neighbor came jogging over and asked me if I was okay. Still processing the entire scene in my head and trying to figure out how I pulled that off without injury, I looked up at him and said, “Yes, I’m fine. I do all my own stunts.” He just laughed and walked away. I told him to stick around I had another bin to bring in, and he didn’t want to miss the show. He told me not to worry; with me as a neighbor, he has 911 on speed dial. Funny guy. ••• The two things that drew me to vinyl records are the expense and the inconvenience.
••• My morning walk, just before sunrise, is about all the therapy I need. Have a glorious day, my friends. ••• Your smile is your logo. Your personality is your business card. How you leave others after an experience with you becomes your trademark. ~ Jay Danzie ••• Watching “The Blues Brothers,” drinking margaritas, and eating Indian food. I may have just found a glitch in the matrix. ••• It’s nice to see all the people I used to cheat death with every weekend grow up to be such fine parents and adults. ••• Are you ever home alone and scare the crap out of yourself when you walk past a mirror because the 25-year-old trapped inside of you forgot that they lived in an old body? ••• Her body tensed and quivered as she felt wage after wage surge through it. I probably should have told her about the new electric fence. ••• Not to brag, but I don’t need alcohol to send texts I regret. ••• I just wanted to clear something up for all of those people who were out on the road this morning. The “Gas Pedal” is the big one on the right! I am fairly sure there was some confusion on this topic. ••• If you eat doughnuts fast enough your fitness app thinks you're walking. ••• This morning I saw a bumper sticker that said, "I'm a veterinarian, therefore I can drive like an animal." Suddenly I realized how many proctologists are on the roads. n
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | NOVEMBER 2023
To see more by Nick, just go to www.facebook.com/nickroberson.
style
Celebrate the season in . OCN Mortgage Holiday Party Join the Originator Connect Network for a fun and welcoming holiday party to celebrate the season, and celebrating the accomplishments of the mortgage origination community. Let’s all toast to good cheer, and to continued success!
Dec. 15, 2023 | Irvine, CA Irvine Marriott
Register FREE at: originatorconnectnetwork.com/ events/ocn-mortgage-holiday-party
Use promo code NMPFREE
ORIG INATORCONNECT NETWOR K.COM
*Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers reserve the right to determine final eligibility.
Get in the groove for your next ground up. Now lending nationwide!
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INFO@RCNCAPITAL.COM
860.432.5858
RCN Capital, LLC is licensed as a California Finance Lender under Department of Business Oversight license number 60DBO-46258. Arizona Mortgage Banker License BK-0932325. Oregon Mortgage Lending License: ML-5571; NMLS Company ID: 1045656.