NMP National Mortgage Professional October 2023

RAISING DOWN PAYMENTS

Why MLOs should teach clients the Amish approach

ORIGINATORS VS. REAL ESTATE AGENTS

It’s time to teach them how GSE loans really work

AVOID FATAL CAREER MISTAKES

Don’t be branded for life from these errors

TAKE THE PLUNGE

Stand out among a sea of applicants when job hunting

BROKERS ON THE PROWL

Try these proven tactics to snare more business FRIEND OR FOE?

The trust issues with artificial intelligence

RAISING DOWN PAYMENTS

Why MLOs should teach clients the Amish approach

ORIGINATORS VS. REAL ESTATE AGENTS

It’s time to teach them how GSE loans really work

AVOID FATAL CAREER MISTAKES

Don’t be branded for life from these errors

TAKE THE PLUNGE

Stand out among a sea of applicants when job hunting

BROKERS ON THE PROWL

Try these proven tactics to snare more business FRIEND OR FOE?

The trust issues with artificial intelligence

Achieving The Gold Standard

Jackie Joyner-Kersee, the Olympian who was named Female Athlete of the 20th Century by Sports Illustrated, would talk about her upbringing in East St. Louis. This is not the nicest place to live, to work, to survive. But where others saw blight and despair, she simply closed her eyes to the bad and concentrated on the good. She focused on herself, on making herself exceed. She trained incessantly, she focused her efforts on what she did best — and she became the fastest woman alive.

It’s a story that echoes one told by Amanda Beard. At just 14, Beard went to the Olympics in Atlanta and improbably won gold in swimming. She was the star of the day, a product of instant fame. But then puberty started changing her body, and the curves of a developed woman changed her speed in the water. Her critics said she was washed up. She barely qualified for the next Olympics and was failing in every heat — until the very end, when she shook off her fears and found her self-esteem, and in a sudden burst of motivation following many rounds of tears, she managed to earn a bronze medal. She has since gone on to win more gold and silver — all told, she’s won seven Olympic medals — but she stresses that no medal was more important to her than that bronze one. It’s the one where she finally found herself.

Loan originators these days may be feeling a lot like these Olympians. So much is stacked against them, the probability of success so small, that it would be easy to give up. Giving in to self-pity is easy. So is blaming the economy, the lack of housing inventory, high rates. Of course, all of those are factors that make success now harder than it was. But purchase loans are still being made, refinances still occurring, fix-and-flip still turning over. Someone out there is medaling in loan origination.

If it’s not you, then please give this issue a thorough read. It is full of techniques and strategies to get you on the winners’ dais. We’re showing you how ChatGPT can win over borrowers for you. We help you understand your worth as you consider working for a different company. What do rookies need to get going? — we’ve got that, too. And maybe more business will come your way if you incorporate being a trusted financial advisor into your profile.

This is, too, NMLS license renewal season. Take it seriously, as this is where you get critical hands-on information on how to properly make a loan that’s good for everyone: originator, lender, buyer, and borrower.

Olympians, after all, don’t give up. They adapt. It’s the only way to win.But these LOs won’t give up. And we’ll be with them for the journey, writing their stories.

STAFF

Vincent M. Valvo

CEO, PUBLISHER, EDITOR-IN-CHIEF

Beverly Bolnick

ASSOCIATE PUBLISHER

Christine Stuart

NEWS DIRECTOR

Keith Griffin

SENIOR EDITOR

Mary Quinn

MULTIMEDIA PRODUCER

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

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VINCENT M. VALVO Publisher, Editor-in-Chief

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Determining The Quality Of Rookies

Simple use of due diligence increases chances of success

BY DAVE HERSHMAN, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

In the last issue, we discussed the topic of rookies coming into this industry. To managers that are hiring — we were all rookies at one point, and someone gave us a shot. There is no way of determining which rookies will fail and which ones will succeed. But we can increase the chances on our end in a few ways:

• Making sure the rookies we hire are quality rookies.

• Making sure the rookies we hire have the right experience.

Making sure that the rookies we hire have the training and mentoring they will need.

This month I would like to focus on the quality aspect. How do we ensure that the person we hire is a quality person? Most of the time, people come into this

industry by accident. Again, going back to my own story, I played racquetball with people in this industry. They thought my aggressiveness on the court would translate into top production. They were right, by the way, but not for that reason.

The point is — just because you have a connection with the person does not mean they are the right fit for the company and the industry. There is an important idiom in business: Success is not an accident.

Let me add one more:

Failure is not an accident.

SIMPLE SOLUTION

You will increase your chances of success and decrease your chances of failure by accomplishing a decent amount of due diligence. Where should this work be focused?

• On-line. Look at their social media. Are there postings that contain red flags? Drunken parties might be one. Offcolor postings might be another. Controversial postings might be another. We are not looking to see if we agree

with their opinions and philosophies. But remember, if they are going into sales, they must be someone who can relate to everyone. I personally have strong opinions about many things, but you won’t find them posted on social media.

• References. Speak to those they have worked before in the past. Even if they are coming out of college, they should have had summer jobs and teachers you can speak to. Are they reliable? Do they pick up concepts well? Are they social? Do they relate well with people? Are they leaders? You should even speak to someone who

referred them. Describe the job — would they really fit in this position?

Of course, these concepts apply to experienced hires as well. How many times have you hired an experienced loan officer and then found out it was a mistake? A mistake you could have avoided if you had done your due diligence up-front? Again, success is not an accident. If the experienced producer has a mediocre track record, there is usually a reason for that — though 90% of them will tell you it was the fault of the previous company(s). That is a red flag right there.

With a rookie — it is a bit harder to extrapolate from their experience to success in this industry. But many of the traits are relatable. And many of the traits which would prevent success are relatable as well.

Note I have talked several times about the experience of rookies. Rookies have experience and this experience is just as crucial as the experience of present producers. More on that topic in the next column. n

Dave Hershman is the top author in this industry with seven books published as well as the founder of the OriginationPro Marketing System and the OriginationPro’s on-line comprehensive mortgage school. Dave is also Director of Branch Support for McLean Mortgage. His site is www. OriginationPro.com and he can be reached at dave@hershmangroup.com

Rookies have experience and this experience is just as crucial as the experience of present producers.

Preparing For A Panel

BY ERICA LACENTRA, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

With event season in full swing, mortgage professionals should be thinking about what opportunities exist at trade shows and conferences that allow them and their company to gain greater visibility with the event audience. Having the ability to speak at an event can be a tremendous opportunity to position yourself and your company as an authority in the industry and share your expertise in a more actionable way than just giving an elevator pitch at your booth. While giving a solo presentation to a large audience can be daunting or it can be difficult to snag a coveted keynote spot, participating in a panel discussion can be a great way to start your foray into the world of professional speaking. However, while you may think that being a panelist is going to be a breeze

compared to being the one and only speaker during a solo session, there are certain steps that folks should take to better prepare for participation and ensure that they are providing a more informative experience for the audience.

So, if you’re a first-time panelist, what should you do to prepare?

CONNECT WITH FELLOW PANELISTS

The best piece of advice for any person participating in an industry panel is to take time to connect with the panel moderator and your fellow panelists long before you hit the stage. Unlike an individual speaking session where you are monologuing information usually with an accompanying presentation, the best and most entertaining panels are when participants have a meaningful and lively conversation based on the presented topic. Great panel sessions flow seamlessly from topic to topic and create actual discussions among the panelists so that certain concepts can be expanded so that each participant

A panelist differs from being a solo speaker — prepare accordingly

Panelists at Originator Connect in Las Vegas, 2023.

can provide a unique viewpoint.

To ensure there is no shortage of topics that panelists can add their insights to, it is critical that the moderator and panelists connect ahead of time to create an outline of the flow of the panel. Panelists should craft questions with the moderator to ensure they have a chance to touch on all the most critical information to provide value for the audience to guarantee a better flow to the discussion. Panelists

figures, it certainly doesn’t hurt to come prepared with key takeaways that you can provide to the audience. You should be thinking about how you are going to be able to add the most value for the audience on this topic and preparing actionable advice or insight that you can add as the panel discussion progresses. It could be anecdotal, it could be stats you have researched, or it could be a mix of both, but regardless, you should be going into a panel discussion knowing what

self-promotion to get their money’s worth rather than providing insight on the topic at hand. Panelists who often monopolize the conversation aren’t really adding value to the discussion. Audience members are usually turned off by this behavior and tune out this speaker. In order to avoid being tuned out, remember that contributing value to a panel discussion is the best promotion you could do for yourself and your company. Rather than making your

should be thinking about what topics you, as a group, want to cover and how they could logically flow from one discussion point to the next.

Also, you should be thinking about how each panelist’s area of experience can be best highlighted so that each participant has an equal amount of time to show off their expertise. When done properly, a moderator can pitch a single question to one panelist and it should either cycle through all panelists so that each participant can provide a unique key piece of information or build off a previous piece of information. Done right, if panelists don't have anything specific to contribute to one question, they can at least use the information gleaned as a stepping stone for the next topic so that everything connects and flows properly.

PREPARE YOUR TALKING POINTS

After you’ve had a chance to connect with the panel moderator and your fellow panelists and you know the general format and topics being covered, it’s time to prepare your own talking points. While panels should be more conversational and not just regurgitating facts and

key points you want to present that the audience will be walking away from the session with.

You can create general notes that you can bring with you to make sure you are addressing your talking points while also making the discussion more fluid. Especially during your first panel, it can be easy to get distracted or off track as the conversation progresses. Preparing your talking points ahead of time and having them on hand will make sure you hit everything you had hoped to discuss and also ensures you look like you are on top of your game throughout the panel.

REMEMBER IT’S NOT JUST ABOUT YOU

Audiences like panel sessions because they can learn from numerous industry experts in one sitting. A good panel should be the equivalent of multiple solo speaking session highlights condensed into one discussion.

One of the biggest mistakes that panelists often make is thinking they don’t have the same opportunity for company and self-promotion to the extent that they would during a solo speaking session. Often speakers will overcompensate by doing too much

talking points all about you, add industry insight and position yourself as a thought leader. Present real life examples and be relatable, honest, and vulnerable, and listen and add to other panelists’ commentary. This will ultimately show the value you and your company can provide to audience members.

DON’T BE PERFECT, JUST PREPARED

At the end of the day, getting ready for your first or hundredth panel all comes down to preparation. Panels can be an extremely valuable tool to gain additional reach and recognition at events. Just remember it’s all about the actionable advice you can provide that audience members can ultimately take away at the end of the session, not blatant self-promotion. Panels should be seen as an opportunity to connect with your fellow panelists as well as the audience and as long as you are providing your unique perspective and knowledge, you’ll be in a good spot to make the most of your participation. n

Erica LaCentra is chief marketing officer for RCN Capital.

The best piece of advice for any person participating in an industry panel is to take time to connect with the panel moderator and your fellow panelists long before you hit the stage.

‘Hidden’ Costs Sink Too Many Ships

First-time homebuyers have to leave renters’ mentality behind when it comes to costs

BY LEW SICHELMAN, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Are we sending too many marginal buyers into the homeownership abyss? Research suggests we are. Not because they can’t afford their mortgage payments, which they often barely can. Rather, because the actual cost of owning and caring for a house can sometimes be overwhelming, if not downright devastating.

Never mind that more

young home buyers can name the latest Taylor Swift tune than their lawmakers in Washington. More importantly, at least in the mortgage business, nearly two-thirds of them cannot ID the four elements of a mortgage payment, according to a study by Clever Real Estate. Spoiler alert: It’s principal, interest, taxes and insurance, or PITI for short.

Another survey, this one from insurance group Hippo, found that roughly half of recent home buyers

said owning a house is more expensive than they anticipated; there’s just too much maintenance and upkeep. A Zillow study found that three out of four buyers have regrets; chief among them, the home needs more work or maintenance than expected.

EXTRA $1K A MONTH?

But maintenance is only one of the recurring expenses ownership entails. There are a host of other costs that should

be considered — but often are not. Some call them “hidden.” Others say they’re “ignored.” And still others say they’re simply “forgotten.” But by whatever name you choose, they’re no roses.

Taken together, these costs add $1,180 a month on top of the typical house (principal and interest) payment, according to Zillow and Thumbtack, a site that links homeowners to local contractors. Hit by these expenses — expenses they did not expect or at least consider — it’s no wonder a good many buyers not only regret their decisions but also fall into default and maybe even lose their places to foreclosure.

In other words, home buyers who focus solely on the cost of mortgage interest and principal are doing themselves a disservice. And so are the lenders who allow them to do so. Might not it be better to at least warn would-be borrowers of the land (no pun intended) mines that lay ahead?

Two costs often ignored by buyers are insurance and property taxes, likely because they are usually included as part of their monthly payments. But unlike the P and I portions of a fixed rate mortgage, the total of which does not change over the loan’s term, the T and I shares change, mostly up and often annually.

Take property taxes, which are the

— and in a hurray, says David Logan, an economist with the National Association of Home Builders (NAHB).

Property taxes are inescapable if you don’t want a lien placed on your place. And unless you want to go commando, you’ll need homeowners insurance for protection against fire, theft, and major disasters. What’s more, if you have a mortgage, insurance will be required.

The decisions by major insurers to leave California and Florida has opened the door for companies in those states and elsewhere to up the ante. One Miami owner reports his premiums are more than double his property taxes because of the cost of windstorm coverage.

The Insurance Information Institute tells me the average home insurance premium has increased 11% year-over-year in 2022 to $1,700 annually. Florida owners have experienced the highest one-year average increase: 42% to $6,000 a year.

BEWARE THE OMNIPOTENT HOA

Homeowners association dues are often forgotten until the first bill arrives. This cost is unavoidable as well. You have to pay whether or not you use the pool, play golf, or hang out in the clubhouse, And because their costs are

principal means by which state and local jurisdictions pay for the services they provide their citizens, accounting for more than a third of their total receipts. Some $174 billion in taxes were paid by property owners in the first quarter, nearly twice the 15-year average, the Census Bureau reports.

Over the previous four quarters, moreover, tax growth has accelerated substantially in each quarter, quadrupling since the first quarter of 2022. Property tax revenue is catching up to home values

rising, just like everybody else’s, they are continually marching upwards.

Almost a third of all housing is in properties governed by homeowners or community associations, and more than three-quarters of all new construction is under the auspices of associations, the Foundation for Community Association Research reports.

While there’s no specific data on dues, about a third pay between $100 and $300 a month. And as with everything else, dues are increasing. Two-thirds

One Miami owner reports insurance premiums are more than double his property taxes because of the cost of windstorm coverage.

of associations report increasing their assessments in 2022, and 84 percent expect to increase assessments in 2024 to keep up with rising costs.

If dues don’t keep up, the property could go downhill. Dues in my small neighborhood have never, ever been raised. And now we can’t afford to repair the community basketball court or fix and powerwash the entryway fencing. A big jump in dues is in the offing.

Then there’s the cost of utilities, which varies depending on your location, age, and size of the property and the number of occupants. According to figures developed by the NAHB from Census Bureau data, fuel runs about $2,500 a year while water and trash costs $845. And that was in 2021.

Move.org, a site that matches people to household moving outfits, has far more detailed and up-to-date monthly numbers: $117 a month for electricity, $45 for water, $62 for natural gas, $66 for sewer, $60 for the Internet, $48 for streaming services, $114 for mobile phone service and anywhere from $25 to $100 for trash. That is a total of at least

$537 for everything on the list. Improvements are a discretionary decision, but maintenance is necessary to keep your place in good working order. Maintenance costs vary widely, depending on your location. But more than half of the first-time buyers polled by U.S. News and World Report said they encountered

unexpected repairs after moving in.

Based on what Thumbtack considers 17 “essential” maintenance projects, the average cost nationally is $6.413. But they range from a low of $3,467 in Las Vegas to a high of $8,639 in Los Angeles That’s more than a $5,000 difference!

“What I find frustrating is how fast things like appliances fall apart and head for the dump,” warns a Tennessee homeowner. “If someone tells you the washing machine will last 10 years, don’t believe them.”

No doubt that owning a place is more costly than renting. But some buyers/ borrowers, especially those doing so for the very first time, come into it with a renter mentality. At the very least, they need to be forewarned of what lies ahead. 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.

Two costs often ignored by buyers are insurance and property taxes, likely because they are usually included as part of their monthly payments.

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CAREER TICKER

People On The Move

PEOPLE ON THE MOVE //

> Cenlar FSB, a New Jersey-based mortgage loan subservicer, announced that Gabe Rinaldi has joined the company as vice president of enterprise portfolio management.

> Dovenmuehle Mortgage Inc., an Illinois-based mortgage subservicing company, has hired Patricia McCarthy as its new vice president of insurance administration.

> Chicago-based Key Mortgage Services Inc. announced hiring Jason Brown as vice president, area sales manager, and the promotion of LaToya Spann-Martin as area sales manager and leader of the company’s new community impact and lending division.

BUILD-A-BROKER

Dumb Ways To Die

PEOPLE

> Californiabased loanDepot announced that Melanie Graper has been named chief human resources officer.

> Home Orbit Lending announced that Matthew Valentine, a long-time resident of Raleigh, joined the team to help build the company’s brand in North Carolina.

> Black Knight Inc. announced that real estate industry veteran Lucie Fortier has been named executive vice president of the company’s MLS Solutions group.

> Jeremy Potter has been named to the new position of president at titleLook. Potter had previously been working as a strategic advisor.

ON THE MOVE //

One slip can ruin your career, so follow the right protocols

BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

One of the world’s most popular — and probably catchiest — public service announcements is a singalong tune called “Dumb Ways to Die.” Originally created as a PSA by Metro Trains Melbourne in 2012 to promote rail safety, the song highlights various foolish ways one could meet their demise, such as sticking a fork in a toaster or standing too close to a train platform.

Funny enough, mortgage loan officers can learn from this jingle, too. Although the dumb ways to die may not directly apply to a typical mortgage loan officer, they themselves face a number of dumb missteps that could jeopardize their careers.

In certain areas, the saying “rules were meant to be broken” might hold some truth. However, this sentiment is far from applicable in the realm of mortgage loan officers. Some LOs think now that they’ve graduated from high school or college, skipping school is no longer an issue, but it’s just one dumb way for a career to die. And still, some LOs fail to comprehend that their future livelihoods depend on upholding regulations and avoiding those potential pitfalls that could stain their permanent records.

That’s of course why regulatory agencies and acts such as the Consumer Financial Protection Bureau’s (CFPB) regulations and the Real Estate Settlement Procedures Act (RESPA) — which prevents behaviors like undisclosed loan costs and kickbacks — are put in place. After all, loan officers are expected to exercise due diligence in their work — in and out of the office.

COMPLIANCE IS CRUCIAL

A surefire way to nip your career in the bud is to skip school. LaDonna Lockard, executive vice president for Utah-based Mortgage Educators & Compliance — a mortgage training, education and regulatory compliance provider — says that the start of 2023 kicked off with a huge compliance issue. “We’re still dealing with the repercussions of the REES (Real Estate Educational Services) Settlement,” Lockard said. “We saw a huge lawsuit where hundreds of MLOs all lied about their NMLS education. Basically, someone was checking off that these loan officers completed their education but they really didn’t take the annual courses.”

Lockard says that this sets off bells and whistles in the LO community, especially if the LOs who cheated attempt to re-establish their careers.

> First Mortgage announced that Erich Cosio, a long-time Fort Worth resident, rejoined the company.

> Cenlar FSB, a New Jersey-based mortgage loan subservicer, has appointed Allison Batts as vice president of executive client management.

> Toorak Capital Partners, a capital provider to private lenders, announced that Scott Goldman has joined the company as head of asset management.

> KFS Mortgage Company has announced the hiring of Sabrina Johnson to its team as the new director of mortgage production.

“Anyone willing to risk their licenses and livelihoods over eight hours of education … well, y’all probably shouldn’t be doing this anyways,” she said. “There were heavy repercussions, too. Anyone involved in it can no longer take online education between one and three years, depending on each state’s ruling. And several lost their licenses or got put on probation.”

It’s not the first time that the NMLS has cracked down on regulations, Lockard says. “They now have something called BioSig-ID, which is a biometric ID system that NMLS had to put into online courses because they found out that LOs were having others fill out their paperwork,” she explained. “A lot of reputations have been ruined [and] employers will be mindful of those enforcement actions, like what else are

you willing to cheat on or do?”

Anthony Johnson, partner and recently-appointed CEO at Mortgage Educators & Compliance, says that he is “constantly amazed” at the lengths LOs will go to in order to cheat on their education. “It’s in the law that they need eight hours of education, and people will try to send others in their place to complete that,” he said.

Lockard said that when it comes to being compliant, sharing is caring and no information is too much to provide your state NMLS. Lockard says that the concern she usually gets from clients is they feel they’re raising a red flag on themselves. But she tells them that it’s better to disclose than to be sorry. “I had one person who called [us] because they had filed for bankruptcy and kept their

license as an LO and claimed that they didn’t know to file [bankruptcy] with the state. And when it came time to renew their license, the state said no. I think the biggest thing that we’re going to see coming up is bankruptcies, foreclosures, and tax liens start to affect people’s licenses in that way. You should always keep the state up to date on any financial changes.”

“I don’t think an enforcement action is a scarlet letter forever. You can recover, but like any public mistake, you’re always going to have to explain it.”

> LaDonna Lockard, executive vice president, Mortgage Educators & Compliance

REPUTATION PRECEDES

Getting slapped with a formal discriminatory action will stay on an NMLS profile forever, Lockard says. “Your customers can see this information, whether you have an enforcement action or a cease and desist … it’s all on the NMLS Consumer Access page,” she said. “And even if the state pulls a license, [that person will] always have to disclose if they’ve ever had a professional license revoked if they apply for another professional license.”

Lockard says she’s also seen mortgage loan officers get their licenses pulled for issues that don’t have to do with the NMLS or RESPA. “I know an MLO who got their license taken for having two DUIs,” she

between their two separate roles, they can get slapped for that.”

MARKETING AND MONEY MISHAPS

Even though most LOs are eager to advertise their services, marketing and creating relationships are two areas where regulatory mistakes can occur, says Ari Karen, a litigation attorney. He has seen LOs attempt to bend rules to give their referral partners kickbacks. “A lot of people try to ‘get cute’ by skating around RESPA kickback rules,” Karen, a partner and head of litigation for labor and employment law firm Mitchell Sandler, based in Washington, D.C., explained. “It might work with your employer but it

into your personal sites, anything you say can affect you from a regulatory or professional standpoint and affect your relationship with your realtors or customers,” Karen explained. “You may alienate a whole group of borrowers.”

Karen says that another thing that LOs need to consider is how they leave their employers. “A lot of people can violate regulations when leaving their company for another. For example, if they start working for someone else while still holding a job with their initial employer,” Karen said. “They can’t download any borrower or loan information, and they can’t solicit employees.”

Karen says that careless LO practices tend to snowball into larger issues. Another job-related mistake Karen

said. “I don’t think an enforcement action is a scarlet letter forever. You can recover, but like any public mistake, you’re always going to have to explain it.”

Johnson says that having a regulatory action on your record is something that LOs will have to explain for the rest of their careers. “It’s going to stay with you. There’s not a time frame or process after [an action[ has been implemented where it will be removed,” Johnson said. “You have to face it … And it doesn’t look good if you have multiple marks on your license.”

Considering others’ reputations also has a role, especially when entering into partnerships or co-advertising opportunities, Lockard advised. “If you’re looking into partnerships, do your due diligence and investigate their reputation and how they follow the rules,” she said. “Advertising is another area that people get into a lot of trouble with. If an LO is co-advertising with someone who is a Realtor and there isn’t a firm delineation

isn’t going to fly with the CFPB. There’s also the idea of if other people do it, they can do it, too. Candidly, that will work for a lot of people … if everyone does it, everyone honestly won’t get caught. But what if you’re the ones who do?”

In August, the CFPB fined Freedom Mortgage $1.75 Million for illegal kickbacks. The CFPB said Freedom provided real estate agents and brokers with numerous incentives — including cash payments, paid subscription services, and catered parties — with the understanding they would refer prospective homebuyers to Freedom for mortgage loans.

Social media is another area where LOs can fudge up the boundaries of their contracts. Karen recommends separating business from pleasure, meaning that LOs should consider keeping their business content out of their personal content, and vice versa. “When you’re inviting business people intentionally

sees is LOs who quickly sign on with a company they really know nothing about. “Another [issue] is not carefully reading agreements. I see situations where an MLO will sign with a sign-on bonus of, say, $100,000 but the contract says if they leave even one day before the bonus is owed, they owe back that money. And of course, they don’t want to pay it, which creates more issues,” he said.

Another mistake? Chasing those big sign-on bonuses without checking the company’s culture or reputation. “They didn’t look at the pricing or beyond the bonus,” Karen said. “The same goes for when a lead-based LO goes to a retail space where it’s more relationship-based. Or if they’re working for companies that have issues with compliance. They’re usually not longterm players … they do really well for a bit and then go away. Having a longterm career view is important so it’s important to be cognizant of that.” n

“There’s also the idea of if other people do it, they can do it, too. Candidly, that will work for a lot of people … if everyone does it, everyone honestly won’t get caught. But what if you’re the ones who do?”

> Ari Karen, litigation attorney

Good Communication Is Never An Accident

BY HARVEY MACKAY, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Adoctor decided to put his overweight patient on an unconventional diet. He advised him, “Eat your regular meals for two days, then ‘skip’ a day. Do this for two weeks and come back to see me. I would expect you to lose at

Two weeks later, the patient returned for his appointment and surprised the doctor by losing

“You lost all that weight by following my instructions?” the doctor asked.

The man responded, “Yes, but I thought I was going to drop dead on the third day.”

“From hunger?” asked the doctor.

“No,” said the man.

“From skipping.”

Do you think the doctor rephrased the instructions for the next patient?

Avoiding misunderstandings is fundamental to a successful workplace, not to mention life in general. Getting along is largely dependent on your communication skills. If doing your job is important, you need to let people know what you’re doing, and you need to understand what they want from you.

USE YOUR EARS, NOT YOUR MOUTH

Curious though it may seem, effective communication starts with listening, not talking. Expressing yourself is vital, but understanding what others are telling you allows you to make your arguments more persuasive.

Warren Buffett, one of the world’s richest persons, famously said: “If you improve your

If you are frequently misunderstood, run your remarks by an unbiased person

communication skills, I will guarantee you that you’ll earn 10% to 50% more money over your lifetime.”

It’s been said that a message sent is only as good as the receiver’s perception of it. Verbal communications tend to create confusion and misunderstanding for a

remarkably simple reason: the 500 most commonly used words in the English language have more than 14,000 definitions.

To make communication really work, we need to make sure the people we’re communicating with understand what we are saying as well as we do. Communication requires both effective sending and receiving. To avoid a breakdown in communication, break down your message so that everyone can understand it.

As tempting as it may be to use big words, or too many words, try to keep your messages as simple and direct as possible. Too much fancy language tends to confuse the listener/reader and dilute the message.

One of the best examples I can offer is Abraham Lincoln’s Gettysburg Address. At just 271 words, it is considered to be one of the greatest and most influential statements on the American national purpose. That speech wasn’t the main event of the day — it followed a two-hour, 13,000-word speech by Edward Everett. That speech was well received, but how many of us have read and remember Everett’s speech?

Include everyone in the same message rather than relying on another to share and interpret your intentions. Keeping everyone on the same page prevents misunderstandings and hurt feelings. If someone has questions or doesn’t understand what you are trying to accomplish, share that information too (without calling out the questioner.) Others may have the same concerns, so listen to the feedback and respond accordingly.

SHOW YOU CARE

Craft your message to fit the

occasion. Bullet points, timelines, committee assignments, goals — whatever makes the most sense to convey the information. Reread your communications before you send them. That extra step can help you find any confusing or unclear statements.

If you are frequently misunderstood, run your remarks by an unbiased person. If they have trouble comprehending your message, clear it up before you circulate it. Saving time and confusion works to everyone’s advantage.

In short, showing that you care about communication demonstrates respect for your co-workers who are serious about the project at hand. That’s what leaders do.

The Chinese sage Confucius was once asked about his views on the importance of good communication in getting things done.

“What,” asked his questioner, “is the first thing to be done if good work is to be accomplished?”

Confucius replied, “Getting the definitions right, using the right words.” Asked to elaborate, Confucius explained in effect that “when words are improperly applied, issues are misunderstood. When issues are misunderstood, the wrong plans are devised. When the wrong plans are devised, wrong commands are given. When wrong commands are given, the wrong work is performed. When the wrong work is performed, organizations fail. When organizations fail, people suffer.”

Mackay’s Moral: I know you believe you understand what you think I said, but I am not sure you realize that what you heard is not what I meant. n

Harvey Mackay is a seven-time New York Times best-selling author with 15 books.

The 500 most commonly used words in the English language have more than 14,000 definitions.

As tempting as it may be to use big words or too many words, try to keep your messages as simple and direct as possible.

Add A New Role To Your Job Description: Financial Literacy Mentor

Educating borrowers has potential to pay dividends down the road

We are living in the most connected era of human history. Nearly everyone has access to all the information they could ever want or need on the internet via smart phones or laptops. Despite this, there is still a significant need for greater financial literacy among today’s adults.

MARY KAY SCULLY, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Look at the P-Fin Index, for example. An annual barometer of financial literacy among U.S. adults, the index includes 28 questions that examine eight functional areas of financial knowledge, including borrowing and saving. The 2023 survey found that, on average, U.S. adults correctly answered only 48% of the study’s index questions and that Gen Z, followed by Gen Y (often referred to as millennials) performed worst, answering only 38% and 45% of questions correctly respectively.

With the average age of a first-time homebuyer falling squarely in the millennial age range, according to the National Association of REALTORS (NAR), loan officers have to be prepared to fill the gaps in their first-time home buyers’ financial knowledge.

WHY IT MATTERS

Greater financial literacy is, understandably, linked to greater financial well-being. In the 2023 P-Fin study, respondents with a very high level of financial literacy consistently had better financial well-being than respondents with a very low level of financial literacy. In fact, those with a very low level of financial literacy were found to be more than four times as likely to have difficulty making ends meet, nearly three times as likely to be debt constrained, and more than four times as likely to lack emergency savings sufficient to cover one month of living expenses. With greater financial literacy and greater financial well-being, homebuyers are better positioned for sustainable homeownership.

THE NEED FOR SMES

Buying a home is often the largest

financial decision of someone’s lifetime. First-time homebuyers, especially, need someone who is educated and confident and can support them through the homebuying journey. Some younger first-time buyers may lean on their parents or another trusted source, while others do not have that luxury.

borrowers, as well. Every borrower needs someone that can answer their questions and talk through decisions with them.

Spending so much money is daunting and borrowers want to be sure they are making the best financial decision. It’s important that no one assumes their borrowers are entering the mortgage process with all the knowledge they need. Even if they’ve bought a home before, they may still have gaps in their understanding of the mortgage process. It’s a critical skill to be able to assess the borrower’s financial knowledge and help to fill any gaps to ensure their homebuyers are fully educated about the process and the financial commitment they are making.

WHAT LOAN OFFICERS CAN — AND SHOULD — DO

Loan officers (LOs) can, and should, be the expert that buyers need. The loan origination process is more than just taking an application, it’s being a guide and a resource throughout the homebuying journey. LOs need to be able to educate buyers about all aspects of the mortgage process, including the different loan products available, expectations for down payments and closing costs, earnest money and escrow, credit scores and their impact, mortgage insurance, and the list could go on.

Homebuyer education courses and resources are a critical tool, but loan officers should be prepared to assist their

The time that LOs take to educate borrowers has potential to pay dividends down the road. By serving as a subject matter expert and trusted resource, LOs are not only helping the buyer make an informed financial decision, but they are building a relationship. If the buyer sees their LO as a valuable resource and financial mentor, they can be more likely to come back when they need additional loans or when it is time to buy another home. Additionally, borrowers that have a trusting relationship have greater potential to refer their friends or family who also need some additional education during the homebuying process.

LOs serve a critical role not just in getting borrowers into homes, but helping them make well-informed financial decisions during the process. Serving as a subject matter expert and trusted advisor can assist borrowers of all ages and financial backgrounds. According to Vince Shorb, the CEO of National Financial Educators Council (NFEC), “Most college graduates spend close to 16 years developing skills that will allow them to get a high-paying salary. However, these people typically spend little to no time learning how to save and invest their money.”

Financial comprehension is key for loan officers who want to succeed and see their borrowers do the same. And it’s a critical component of helping your homebuyers attain sustainable homeownership. n

Mary Kay Scully is the Director of Customer Education at Enact, leading the development of the company’s customer education curriculum.

Every borrower needs someone that can answer their questions and talk through decisions with them.

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Robots Can’t Relate Robots Can’t Relate

Incorporating

BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

For some industry veterans, there’s nothing to worry about. “We’ll always need in-person mortgages,” says David Lykken, founder at Transformational Mortgage Solutions. For Lykken, ChatGPT is but an asset to the industry.

So it makes sense that companies like Big Purple Dot (BPD), a real estate CRM platform provider based out of Irvine, Calif., are integrating ChatGPT into its CRM ecosystem. The company is calling the collaboration “BPD AI assistant” and using it for conversational purposes between lenders and clients. According to the company’s CEO Roxana Davidoff, the integration features include natural language processing, accurate responses and queries, sales objections handling, and sales management to boot. Davidoff claims that this is the first phase in a series of updates to BPD’s CRM model.

“The way we’ve integrated [ChatGPT] is that we’ve allowed our clients — LOs and real estate agents — to use a conversational AI solution to leverage natural language processing to interact with their clients,” Davidoff asserts. “We’ve integrated [the AI] so that agents or loan officers can respond to the consumers’ inquiries in realtime. And what I mean by that is, anytime someone has a question or wants to reach out to a potential loan officer, our BPD AI will instantly respond back. It’s a quicker way to streamline communication.”

Davidoff says that right now is a golden era in artificial intelligence technology. “It’s pretty limitless as to what we can do with Open AI,” she said. “When you think about technology and where we are, I think

that it’s going to happen in a much quicker way and in a direction where things will be streamlined better and quicker that these manual tasks will go away. It all comes down to speed and efficiency.”

But others aren’t convinced, and even tech’s biggest moguls are finally agreeing that AI needs to slow down. At the tail end of March, over 1,000 tech bigwigs including Elon Musk and Steve Wozniak signed an open letter calling for a six-month pause on training AI systems more powerful than GPT-4 — also known as ChatGPT. Perhaps it’s pride or insecurity that’s prompting tech talking heads to take caution, but nevertheless, ChatGPT is a sense of contention in not only the tech world.

SKEPTICISM

SKEPTICISM

Steve Richman, a mortgage consultant, is a naysayer of the new wave of artificial intelligence infiltrating the industry, especially as ChatGPT has been tested to suggest loan products and attempt to write mortgages. “I still believe in face-to-face mortgages,” he said “I’m a big believer that you need to talk to people. And someone who is taking out a halfa-million-dollar loan isn’t looking to essentially push button and get a loan.”

Richman says that he’s seen demonstrations where borrowers can plug their parameters into ChatGPT and the bot will come out with loan products suitable for that consumer. “So that’s where people are concerned about getting jobs.

ChatGPT into mortgages is a friend or a foe has some originators concerned if artificial intelligence

To replace or not to replace, that is the question. At least that’s when it comes to whether Open AI’s ChatGPT is taking over the job market — particularly in the mortgage industry.

And it probably won’t get rid of all jobs, but it will take away some,” he said. “It’s not there yet. We had automated underwriting and people thought it would get rid of underwriters, and though we didn’t lose all, we lost some [jobs].”

For Richman, his main concern is determining intellectual property. “When I write a blog post, I specifically write at the bottom that it was written by Steve Richman, not ChatGPT,” he said. “I also encourage LOs to constantly say that they don’t use ChatGPT to post or write [their] stuff. ChatGPT is great at helping people with the easy, generic stuff. But when it comes down to technicalities, it’s hard to trust it.”

It’s not to say that Richman is telling LOs to avoid the platform altogether — he just advises them to not risk being replaced by the intelligence application. “It’s great for marketing,” he said. “It’s amazing to ask it prompts such as the top 10 questions first-time homebuyers have. But make that prompt your own, provide your own answers instead of relying on ChatGPT.”

Richman also says ChatGPT’s red flag is that it puts people into boxes rather than distinctly remembering individual users. “For example, if you ask the bot to write a poem about your name, it’s going to give everyone with that same name the same response,” he explained. “It’s lacking personalization, which is why it’s on the individual LO to maybe revamp ChatGPT’s responses and gear them towards customers’ needs.”

Richman’s other worry is that the platform is untrustworthy. “When I plugged in a prompt as to how to attract first-time homebuyers, one of ChatGPT’s suggestions was to produce a blog featuring neighborhood statistics such as crime rates, schools, and income levels,” he said. “Well, those three things are illegal for a real estate agent to talk about. So be sure if you’re an LO who uses ChatGPT, don’t just hand over its responses to the public without fact-checking and putting your own spin on it. Not only do the responses sound not like

PRO-INNOVATION

PRO-INNOVATION

Richman’s concerns are formed by the news and popular media that he’s seen about AI. For instance, Richman said that his viewing of the recent film “M3GAN,” which depicts an artificially intelligent doll who develops self-awareness and becomes hostile, made him even more wary about society’s adoption of artificial intelligence. But for others, it’s simply a new way of life.

Lykken is one of the more positive industry vets when it comes to embracing ChatGPT’s innovation. “It will be a mistake if people do not embrace it and learn how to use it,” he affirmed. “It’s a decided advantage when working with Realtors, builders, and other industry folks. The amount of data ChatGPT provides can be a catalyst for other ideas.”

Lykken also says that in order for LOs to get the most value out of ChatGPT, they need to learn to ask the application the right questions to elicit the most fruitful responses.

“Learning to ask the right questions from ChatGPT is crucial. The data set that you can get back needs to be validated and verified and current,” he said. “Avoid using data from earlier years if you know that data has changed. I, for one, am using it constantly. The amount of data i can bring to clients is extraordinary.”

Although Lykken describes himself as proinnovation, especially when it comes to artificial intelligence, he also acknowledges that LOs shouldn’t be worried about being replaced in the near future. “The relational component between borrowers and LOs is something ChatGPT can’t take away, especially when it comes to a conversation and reading someone’s emotions,” Lykken said. “Robots can’t relate. [ChatGPT] can help you lay out the exact need of your consumer and help you reveal blind spots in an application … but it can’t replace communication.” n

you at all, but they could get you in trouble.”

and help you reveal blind spots in an application … but it can’t replace communication.’ ”

> David Lykken, Transformational Mortgage Solutions

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“ChatGPT ‘can help you lay out

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You’re More Than Your Production

Practical advice for LOs looking to change employers — even in a down market

BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Standing out in a sea of applicants can be a daunting task, but with the right approach and mindset, it’s possible to make yourself an attractive candidate to any job hiring manager. Especially on the cusp of a new job opportunity, it can be intimidating for loan officers — whether they’re industry veterans or newcomers — to make themselves stand out beyond their production numbers. And in a time where production is down overall and job applications are a survival of the fittest feat, loan officers need to market themselves beyond their production.

Companies always look at production first. It’s a given, tangible piece of information that immediately tells the job recruiter or hiring manager what the loan officer has done and what monetary value they can bring to the job. “Numbers don’t lie,” said Jordan Bernbaum, a senior loan officer and recruiter for Arizona-based NEXA Mortgage. “But LOs have to think of job recruitment like doing a college entry application. If production is your GPA, then we look at how you communicate, or anything extra you bring to the table.”

Bernbaum says that like a college application, there are many ways to make yourself stand out that don’t necessarily have to do with production. “[There are] LOs [at NEXA] like Renato Rodic who brought the MLO box suite of programs that runs some of our internal systems, and Josh Pitts who runs Shred Media. If you’re not doing anything like them, then don’t worry. I’m the digital nomad LO traveling the world. Others are great at support or are Non-QM gurus. There are so many ways to stand out,”

Bernbaum said.

And Bernbaum reiterated that standing out is crucial in a sluggish market. And it can involve LOs taking themselves out of their comfort zones. “Branching out in a down market is key. I’ve seen LOs learn new loan products that more closely align with their focus areas, such as DSCR. Some LOs have gone into the insurance game on the side,” he said. “[And even] upping their social media presence. There are so many ways to go when the market is down, and you find yourself with more idle time to accomplish that.”

SELLING YOURSELF

Since Bernbaum is both a loan officer and recruiter, he understands what recruiters are looking for and just how loan officers can execute that vision. “If I can add anything to what I’ve already said, it would be [for LOs] to keep at it and treat this business with care and professionalism. I think any recruiter’s biggest fear is that the person they bring on is someone who isn’t going to reflect well on them,” he said. “You don’t want to see the person you brought on board alienate half the company’s target market on their Facebook profile, while [your company’s] logo is prominently displayed.”

For others who have been in the business for decades, it’s a no-brainer as to how to market themselves. For Jonny Fowler, he’s taken his knowledge of knowing what makes an LO marketable and applied it to his own coaching company, Jonny Fowler Media. Fowler has worked as a corporate development manager for NRL Mortgage and as a senior vice president for Hancock

“An LO has the responsibility to determine what they want to do and what being a loan officer means to them.”

> Jonny Fowler, founder, Jonny Fowler Media

Mortgage Partners in the past, among several other positions in his 29 years in the mortgage industry. He’s even done recruiting. So Fowler understands that at the end of the day, production is important — but it’s certainly not the end-all of being a loan officer.

“People who have an understanding of markets recognize that after 2022, your production had little to do with you and more about the market,” Fowler said. “LOs come and go, but the ones that come in when refinances are good and purchases are good don’t know how to pivot when the market changes. People who don’t let the down market get to them will always succeed.”

Fowler says that as a coach, the biggest issue that he deals with is getting clients out of their own heads and having a negative mindset. “I can’t handle when a client is constantly negative about the marketplace,” he said. “To those clients, I challenge them to figure out what they like, what they don’t like, and their attributes. Turnover and attrition are horrible for any business, and an LO has the responsibility to determine what they want to do and what being a loan

is in an inverse relationship with the company, too. Fowler says that companies are often irresponsible when it comes to taking care of their loan officers. “Many clients of mine experience the island effect where it feels like they were stranded to learn everything on their own,” Fowler explained. “In my 29 years, I know that if you make it easy on a LO to bring in business, they have the ability and potential to bring in as much business as you can handle. If you make it difficult, they will only bring in as much business as they can bear the pain. And in order to make it easy, it’s a collaborative effort. LOAs and

someone truly wants to help themselves they will make time,” he said.

BEING VALUABLE

Michael Hammond, president and founder of NexLevel Advisors, is a fellow coach and marketer in the industry. Hammond, like Fowler, is active in coaching LOs who want to market themselves as more than a number. “The number one mistake that a lot of LOs make as the market is shifting, whether they’re new or old [to the business], is focusing too much on their reviews and being all about themselves,” Hammond said. “They need to focus on what value they can bring to borrowers. And how they can do that is by telling anecdotes about how they helped people and showing that they’re relatable.”

officer means to them.”

Fowler says that finding meaning in the career is the first step to ousting negativity. “If it were me just starting out in the industry, the first thing I would do is find mentors. I know that sounds difficult and asinine, but there are so many people who are out there,” he said. “You don’t need to have Barry Habib’s phone number in order for him to be your mentor, but you can follow him and listen to him. Even business owners can be mentors.”

TLC

Of course, an LO finding meaning in a job beyond production numbers

processors need to do their job, and underwriting and closing need to be manageable and organized.”

And Fowler says that TLC from companies doesn’t stop at organization and ease. It’s also helping to manage LOs during down times. “They need to take care of top performers and also reach out to those who haven’t closed loans in 60-90 days. Those LOs have guilt and are depressed about not having loans. It should be the responsibility of companies to reach out to their employees and see if they can save them.”

And what makes an employee worth saving, Fowler says, is a positive attitude and a willingness to be better. “If

Hammond also says that value needs to be tenfold when it comes to creating and maintaining a network of followers and referral partners. “It’s a purchase-heavy market, so LOs need to build relationships with real estate agents, and they need to do that by providing something of informational value,” he said. “I recommend sending realtors texts about tips about what’s happening in the market, how to help borrowers bid, etc. And they need to do it consistently so they know that you are reliable for them.”

Another way that reliability and value can be created is through social media, Hammond says. He advises LOs to select and focus on only one platform. “Pick one that is tailored to your target audience, whether that’s LinkedIn or Instagram or even TikTok,” he said. “Do video. A lot of internet traffic is video content. Talk about the questions that lenders and real estate agents are typically asking you. That establishes yourself as a thought leader, which hiring managers want to see. And it harnesses your referral relationships, too.”

n

“I think any recruiter’s biggest fear is that the person they bring on is someone who isn’t going to reflect well on them.”

> Jordan Bernbaum, senior loan officer and recruiter, NEXA Mortgage

"The number one mistake that a lot of LOs make as the market is shifting … is focusing too much on their reviews and being all about themselves.”

> Michael Hammond, president and founder, NexLevel Advisors

Second Best To Banks? Not So Fast

Not everyone thinks of approaching brokers for a mortgage, but independent agents are trying to change that

BY SARAH WOLAK, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

But that hasn’t stopped brokers from making their mark, especially when it comes to their referral sources. Three brokers from across the country shared what works for them.

Debbie Siegel, who owns and operates Westchester Mortgage, a mortgage brokerage firm based out of Massachusetts, says that she’s been a broker for over 20 years. “A lot of people don’t even

understand what a mortgage broker is,” Siegel says. “And based on experience, a lot of people have the misconception that using me will cost more money.”

When Siegel started in the business, she knew that she had to study her competition in order to stand out. Her best method of putting herself out there was writing solicitation letters — about 50 a week, she said. “Back then, I used

to have to buy leads from banks,” she explained. “And I would get a lot of phone calls from my letters that started fielding me a lot of business.”

Siegel is firm in her belief that being a broker isn’t about the money — it’s about establishing a trusted relationship while customers are buying the biggest asset of their lives. “A piece of real estate fits into your overall financial picture,

Local banks, credit unions, and fintechs are what many Americans consider as options when getting a mortgage. Brokers aren’t usually first of mind on that list — despite being a significant part of the mortgage process.

“I’ve been in this business long enough to know that the main thing loan officers carry around with them is their reputation. So for me, it’s always been about having a strong relationship and solid reputation.”

> Debbie Siegel, owner, Westchester Mortgage

and part of my job, what I love, is being able to educate my customers about their purchase being an investment, not just their home.”

REPUTATION IS EVERYTHING

Aside from buying leads and writing hundreds of letters, Siegel knew that relationships played a larger role in her ability to get business. “I started networking early on in my career and built up a reliable referral base — people like CPAs and financial advisors, and that helped me find a niche: newly divorced women and single women,” Siegel said. “What I found was that there was a certain generation of women who were waiting to buy property until they were married or had a partner. What I found myself passionate about was educating women on strengthening their assets. And with divorce, there’s usually property involved.”

Siegel says that getting referrals for women either going through a divorce or

customer but I know who else can,” she said. “I’ve been in this business long enough to know that the main thing loan officers carry around with them is their reputation. So for me, it’s always been about having a strong relationship and solid reputation.”

Even though Siegel has a strong presence in the community of newly divorced and single women, she still focuses on the upkeep of her relationships in order to put herself out in the community. “What’s fruitful for me is keeping in touch with my past and existing client base. I send out newsletters every month,” she explained. “Pre-COVID, I went to all of my closings. I still try to do in-person networking events, too.”

Siegel’s other key to her success is a networking group that she’s been a part of for 20 years called Business Networking International (BNI). “That group meets every Friday morning and there’s only one mortgage broker in the group as well as one CPA, one

and newsletters too, but social media tends to be the key. You have to meet your audience where they are.”

BUILDING A COMMUNITY

Lavender, like Siegel, recognizes that he’s not for every customer. But social media is a way for him to establish an online community that feels connected to him before they meet him in person. “I have people who tell me they’ve been watching my content and they feel like they know me,” he said. “You attract and repel the people who do or don’t want to work with you, so social media is like an automatic filtering process.”

Lavender works as a senior loan officer for Madison Mortgage, a New York-based brokerage. He’s known as “New York’s Favorite British Mortgage Broker” due to his British origins, accent, and social media presence. Lavender says that Instagram is his main focus for success and that clients tend to gravitate to him on account of his content. “I try

looking to independently buy property happened because her referral base knew that she would be able to give undivided attention to each client. “I run Westchester Mortgage on my own which means I can act as an LO and a broker,” she said. “I run my business as being solution-oriented. What I tend to do for each client is help them with an individual plan: does it make sense for them to buy out the other spouse? Does it make sense for them to rent for a while? How much can they afford? It all plays a factor.”

Part of being solution-oriented is Siegel admitting when she isn’t the best fit for a customer. “It’s all about how you react in a situation. I have no problem saying that I can’t help a

financial advisor, one commercial banker, so there’s no competition in my networking cohort,” she explained. “The idea is to refer business to each other and help the other grow. They’re like my marketing team.”

Similar to Siegel, Ben Lavender’s approach is to make himself easy to find in the community. While Siegel sticks to older forms of communication like newsletters and cold-calling, Lavender uses social media to entice customers. “I never ask for business, I just try to put out as much valuable information as I can to two audiences: realtors and borrowers themselves,” he said. “I take topics that I often discuss with my clients and make them into videos. I do [email] marketing

and hit the sweet spot of being dryhumored and educational,” Lavender said. “It keeps people engaged, but the way I see it is if you approach it from the audience’s perspective, the chances of connecting with them will increase.” Lavender says a lot of his audience is people also in the financial services industry, which in turn, helps him create a business-to-business relationship with viewers. “They become my referral base. I’m not always having consumers reach out to me for loans. I prefer to be second in line, meaning that people want homes, not mortgages,” Lavender said. “So typically, when a customer reaches out, they’ve already made the decision to buy or sell their home. So before talking to

“I take topics that I often discuss with my clients and make them into videos. I do [email] marketing and newsletters too, but social media tends to be the key.

You have to meet your audience where they are.”

> Ben Lavender, senior loan officer, Madison Mortgage

> Kevin Pennington, mortgage broker at Washington First Mortgage Loan Corporation

me, they’re more likely to talk to their realtor or CPA who will refer me.”

Lavender has been in the industry for 10 years and recalled that when he began as a loan officer assistant, he struggled for the first 6 months. “I didn’t know the business or how to reach customers,” he said. “I was not reaching out to anyone, and I had to learn the business secondhand. So I had a mentor who taught me how to reach people and get business. I started reaching out to real estate agents, but I knew I had to have a mouse trap approach that would convince realtors to do business with me and help each other.”

Lavender says that having had a reliable mentor take him under his wing is what propelled not only his business

but his reputation, in his community. “Customers tell me that I always get [the job] done,” she said. “And especially doing business in New York, I’m happy that I can provide them with a sense of calm.”

FOOT IN THE DOOR

Other brokers have taken a different approach to getting themselves out in the community. Kevin Pennington, a mortgage broker at Washington First Mortgage Loan Corporation, was able to take advantage of local businesses to get his name out there. Pennington, who is based in Kirkland, Washington, is right next door to Microsoft’s Redmond campus, which proved to give him an

upper hand. “I had a few successful transactions with employees [at Microsoft] and the company was kind enough to put my name out on an online board,” Pennington explained. “That’s helped my business because what people often forget is that independent brokers are competing against larger retail banks with name recognition and larger marketing budgets.”

Pennington says that his business is 100% referral based and consists of almost entirely realtors and past clients. “I don’t use trigger leads or anything like that,” he said. “I have a website and use search engine optimization, but other than that I truly am a word-of-mouth business person.” n

“What people often forget is that independent brokers are competing against larger retail banks with name recognition and larger marketing budgets.”

FHA Bias: Originators Need To Educate Real Estate Agents

VA loans are also unpopular for incorrectly skeptical agents

BY KATIE JENSEN, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

buyer’s real estate agent walks into an office with a contract in hand and places it on the seller agent’s desk, where he’s sorting out a pile of other offers for the same house. The seller agent glances at the contract, eyeing the words FHA on the front page. He gives the buyer agent a curt thank you before tossing it into a separate, smaller pile. The buyer agent knows that’s where contracts go to die.

This is a real scenario that happens quite often, according to some originators and even real estate agents. The buyer agent may suggest looking more into the contract, saying this offer has a greater earnest money deposit, or greater down payment, or they’ll even clarify that the buyer will handle all the closing costs.

But the seller agent doesn’t look any more enthused. He’d rather explore all the cash and conventional offers, and, God forbid, if there’s nothing good in that pile, he’ll sort through the FHA offers.

Even the National Association of Realtors calls this a pervasive issue for FHA and VA borrowers. According to an article in REALTOR Magazine, there’s a stigma surrounding these two loan programs that hurt lower-income households and people of color.

HOW PERVASIVE?

How widespread this issue is, no one knows. It’s hard to prove that a seller agent is being biased, even in the abovementioned scenario. After all offers have been submitted, it’s up to the seller to choose which one to accept, along with some guidance from the agent. Only the two parties know what happens in that conversation or if the agent is steering the client away from FHA offers.

Connecticut-based Realtor Alexa Hughes says a good, ethical agent will act as a co-pilot in this situation and simply educate their client on what each offer entails. “It is the Realtor’s job not to share too much of their personal opinion, but rather to educate and inform,” she said.

But not all agents act ethically, or they don’t want their clients to deal with some of the challenges that come with FHA loans, such as a stricter appraisal and safety inspection.

Even buyer agents could be biased, and try to persuade their clients to switch to conventional with down payment assistance (DPA). After

submitting countless offers with an FHA loan, the buyer and agent are exhausted and think switching to conventional could be the life-preserver they need.

However, real estate agents are not mortgage experts. They are in no position to judge which loan is best for the client or make judgments against FHA without understanding all the details of the program. Doing so would only hurt their business or even threaten their license.

“I try to educate every listing agent I get to talk to that is uncomfortable with FHA and, hopefully, it helps a little bit. But, you know, there’s a lot of them out there that are prejudiced against FHA,” said Nicholas Barta, division president and loan originator with Security First Financial.

For the past few years, a large segment of homebuyers have been on the sidelines waiting for the market to become more affordable. Now that overall originations are down, loan officers cannot afford to let this stigma continue. Denying FHA borrowers the opportunity to own a home, means denying originators more business.

Here are the major points originators should make when educating real estate agents on the FHA loan program.

CONVENTIONAL AIN’T ALL THAT

Barta is the fourth top FHA originator in the nation, and he’s had to address the stigma around the loans countless times. That’s why he takes it upon himself to educate real estate agents on the FHA loan program to dispel some of these myths.

Barta’s FHA clients are usually first-time homebuyers between the ages of 20 and 35, with a credit score ranging between 660 and 680. In many cases, those clients could qualify for a conventional loan, but what many real estate agents don’t understand is that the client is better off being wellqualified for an FHA loan than barely qualifying for a conventional loan.

“If you compare an FHA loan with a conventional loan at a 660 credit score, the conventional loan is going to have higher mortgage insurance and higher interest rates,” Barta said. “So the FHA loan is more affordable.”

Given how much home prices have grown over the past few years while income has not kept up, it makes more sense to switch from conventional to FHA. For example, a buyer that qualifies for a $300,000 home on a conventional loan would most likely qualify for a bigger loan amount, like $375,000, with an FHA loan.

“We have those conversations a lot with real estate agents who are like, ‘Oh, I’m just going to take them [the client] to conventional.’ I’m like, well, you can, but you have to back down their approval amount by 75,000,” Barta said. “And that usually changes their mind.”

Even when listing agents put “will not accept FHA” in the listing description, they may be doing their client a huge disservice by limiting the pool of potential buyers. Barta explains these listing agents are limiting competition and the amount of money the seller could make.

ADDRESSING MYTHS

It’s the agent’s responsibility to help sellers get the best deal possible, so they may want to avoid any added costs the seller has to pay due to the FHA inspection or appraisal. However, Barta says the costs to get a home up to FHA standards has been overblown.

“Normally, if we get a condition on an FHA loan, it’s a missing light fixture or your outlet covers are gone … there’s not a discharge pipe on the hot water heater,” Barta said. “The average cost of the repairs is probably $200 … it’s not like it’s gonna change the seller’s distribution a whole lot.”

“There’s always creative solutions as far as, let’s say the home needs the railing,” said Hughes. “These appraisers

It is the Realtor’s job not to share too much of their personal opinion, but rather to educate and inform.

> Alexa Hughes, Realtor

aren’t out there like trying to kill deals, right? But if the seller has identified there’s holes in the roof, you know, there’s major issues with this home, then certainly that’s a different conversation to be had upfront versus later on.”

Another common misconception is that FHA loans take 60 days or longer to close, but Barta says that’s not true either. He is able to close FHA loans and conventional loans in the same time frame. And the article by NAR states that data shows FHA loans actually close faster than conventional loans.

“I think that 20 years ago, appraisers were tougher on [FHA] properties. And that has really changed. I mean, there’s just a lot of those misconceptions that aren’t there anymore,” Barta said.

WINNING DEALS WITH FHA

Hughes has worked with plenty of FHA clients in the past, and knows how to craft a winning offer. Originators can review these tips with buyer agents before they suggest switching the client over to a conventional loan.

Although Hughes does not recommend waiving inspection, because that may end up costing the client a significant amount in repairs, she does recommend submitting the offer as-is to make it more competitive.

“This means you’re able to inspect, however, it is for informational purposes only,” Hughes said. “Nothing’s a guarantee. Someone can purchase and then the next day the water heater goes, but at least they’re able to be informed and have that inspection and then decide, am I comfortable moving forward?”

Another suggestion is increasing the escrow amount or the deposit amount that someone puts down and is applied to their down payment at closing. This, essentially, allows the buyer to put more

skin in the game. This deposit amount is also contingent on the contractual dates, like how many days the client has to get the property inspected. There’s also the appraisal contingency and mortgage contingency in which the client receives the mortgage approval letter from the lender on or before a specific date in the contract. All of that keeps the buyer’s deposit safe.

“It’s a way for them to make their offer more appealing,” Hughes said. “Certainly, if someone’s putting $1 down in escrow versus $50,000 down in escrow, that’s another factor the seller’s able to measure as far as mitigating risk and how serious the buyer is.”

Sometimes, the buyer can even increase the offer amount, as long as the buyer is comfortable with that and the lender approves it. The loan officer will then explain to their client what that purchase price means in terms of monthly payments. Although the buyer may be pre-approved for a $300,000 loan, based on the client’s lifestyle and spending habits, they might be more comfortable with a $270,000 loan. To avoid confusion or relaying misinformation, the agent should always tell their client to have this conversation with their loan officer.

THE POTENTIAL DANGERS

The share of Black and Hispanic home buyers who use FHA financing is double that of any other loan product, said David Sanchez, special policy advisor with the Federal Housing Administration. And with 84% of FHA loans going to first-time buyers in 2022, there’s a risk that this bias will prevent many would-be buyers from achieving homeownership.

“If we start saying, ‘Hey, we’re not gonna take FHA financing,’ you know, indiscriminately, they’re redlining,” Barta said. “Whether they’re redlining

on skin color or they’re redlining on … income level.”

Just because a buyer is going for the affordable loan option does not mean they are not qualified borrowers. Considering how much home prices have inflated over the past few years and income has remained the same, it’s simply smarter for these buyers to go with an FHA loan.

The same issue goes for VA loans, which comprise 14% of the homebuying market. James Heaslet, chief of construction and valuation at the U.S. Department of Veterans Affairs, said sellers and seller agents think these veterans “don’t have enough skin in the game,” and aren’t thought of as responsible homeowners.

“Well, I had skin in the game when I raised my right hand and vowed to serve my country,” said Heaslet, a veteran.

In fact, the average FICO score among veterans is above 700 and they typically have around $40,000 in cash reserves, according to NAR.

“We get the same prejudice for VA loans and it’s really disheartening,” Barta said. “However, we still get a lot of them accepted. I think that you have to be extremely positive and extremely straightforward with people.”

Additionally, Hughes proves that not all real estate agents are biased against FHA and VA loans. NAR recently met with legislators at the Federal Housing Finance Agency (FHFA) to argue against a proposed fee that’s based on the borrower’s debt-to-income ratio. They argued that this would end up hurting FHA borrowers and the overall market, and thankfully, the FHFA listened.

“We really applaud FHFA for listening to our industry’s concerns and choosing to drop the fee on the borrowers with higher debt income ratios that, of course, would impose a cost on borrowers during a time in the market when affordability is already stretched,” Hughes said. n

We have those conversations a lot with real estate agents who are like, ‘Oh, I’m just going to take them [the client] to conventional.’ I’m like, well, you can, but you have to back down their approval amount by 75,000. And that usually changes their mind.

> Nicholas Barta, division president and loan originator, Security First Financial

ARE YOU A DIVERSITY LEADER?

National Mortgage Professional is looking to highlight a list of the mortgage industry’s DIVERSITY LEADERS. Companies that go above and beyond to promote diversity and create a working environment for everyone. Companies who promote inclusivity not just within their company but in the communities that they serve.

Honorees will be showcased in the February 2024 issue of National Mortgage Professional Magazine.

Nominate yourself or a worthy individual you know today.

Submission Deadline: November 3, 2023

ambizmedia.com/recognition/nmp-magazine-diversity-leaders

NOMINATE TODAY

Other 2023 & 2024 nominations are also open. Nominate now!

Some 2023 nominations may be closed, but you can still nominate for the remaining 2023 and some 2024 recognition awards now! Follow the links for more information about each award and to nominate worthwhile people and orginazations — or yourself — today.

INDUSTRY TITANS

Submission Deadline: Sept. 29, 2023

WOMEN OF INSPIRATION

Submission Deadline: Dec. 1, 2023

LEADING LOs

Submission Deadline: Jan. 12, 2024

PRISM AWARDS

Submission Deadline: March 1, 2024

MOST CONNECTED

Submission Deadline: March 29, 2024

MOST LOVED EMPLOYERS

Submission Deadline: March 31, 2024

BEST MILITARY LENDERS

Submission Deadline: Aug. 2, 2024

NMP’S 2023 BEST MILITARY ORIGINATORS

Submission Deadline: Aug. 2, 2024

40 UNDER 40

Submission Deadline: Aug. 30, 2024

Award winners will be recognized in future issues of National Mortgage Professional Magazine. Don’t wait until the last minute. Nominate now to make sure you don’t miss a deadline.

MODERN BARN RAISING

Down payment gifting reaches new heights

BY ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

As the sun rises into the sky, the men cut and shape the timbers while the women prepare a meal. By twilight, a family has a new barn.

The Amish and Mennonite tradition of barn-raising traces back to 18th-century rural America.

Several hundred years later, a community of one’s family, friends and coworkers assemble with credit cards and checkbooks in-hand to contribute to a starter pot for a new home.

Actually, this all takes place on a secure web browser after solicitations have gone out on social media, linking interested donors back to a campaign page on one of several down payment gifting platforms.

This fairly-new opportunity just might be the 21stcentury variety of barn-raising, except that it benefits homebuyer-hopefuls and mortgage professionals alike.

WHO’S DOING IT?

In 2018 the pioneering CMG Mortgage rolled out HomeFundMe. The name was quickly changed to HomeFundit to avoid confusion with popular crowdfunding platform GoFundMe.

At that time the housing market was just glimpsing the rise in prices and interest rates that is today’s stark reality. Nowadays first-time homebuyers are having an increasingly tougher time saving for a down payment, just to see prices inch up yet again.

It takes prospective buyers three or four years on average to save a down payment, according to the National Association of Realtors. Meanwhile, those who do have a generous donor or two in mind (mom and dad, please?) typically don’t get around to telling their lender until the end of the loan process. Then they need to scramble to get letters from donors indicating that their donation was a gift that doesn’t have to be repaid and sometimes even bank statements to show when the donations were made.

“There was no great mechanism for collecting those down payment gifts; it was paper-based and very inconvenient,” CMG Director of Affordable Finance and Fair Lending Doug Nesbit says. “And so we concluded that there needs to be a better way of putting together a down payment and bringing in all these people who might want to help. Let’s make the gift letters electronic, let people donate with a debit or credit card and stop this paper-based, frictionfilled system that happens too late. That’s where

HOW DOES IT WORK?

Borrowers can set up a campaign link, tell everyone they have a lifetime ticket to all backyard barbecues with one small donation and wait for the money to add up. Meanwhile, talk over living preferences and the homebuying process with a real estate agent and CMG-affiliated loan officer.

“When you graduate from college or get married, you send out an announcement to people who love you and they send money and gifts,” Nesbit says. “There is this group of people who know you, love you, and want to support you and be there for those milestones and that’s who we see helping in a HomeFundit campaign.”

Many campaigners put their QR code on wedding and graduation announcements next to or as an alternative to a link to a traditional gift registry.

HomeFundit is free to users and there are no taxes and fees. The lender matches gifts two-to-one up to a total of $2,000 or 1% of the closing cost. UpIt, the platform’s online shopping donation funnel, partners with over 1,000 online retailers. Donors can also use this and a portion of their purchases will be rebated to the down payment fund. Additionally, people get $10 towards their $2,000 lender grant each time they share their campaign on social media.

There’s no limit to the fundraising total, just a $5,000 limit per donor.

“A well-shared, good-looking campaign will raise $5,000 to $15,000,” Nesbit says. “We routinely see campaigns reach the $40,000 to $50,000 mark.”

The platform is available to move-up buyers as well, but they don’t benefit from the lender grant.

In terms of the gift letters, individual donors who give more than $500 electronically sign a statement indicating their contribution is a gift and not a loan.

The platform’s original 12-month deadline for campaigns is long gone, so users have as much time as they need to keep campaigns running before they get to closing on a home.

“It’s perfect for people who are doing long-range planning and it allows loan officers and real estate agents to work with buyers who are further out,” Nesbit explains. “As we moved into this market where home prices are staying firm and rates have gone up, people are planning further and further out on real estate purchases; the average length of a campaign has grown steadily. It’s around five or six months now. We also routinely see campaigns finishing up that are a year-and-a-half old or longer in some cases.”

HomeFundit really shines. That’s why we built it.”

“This really allows us to engage with people who are not ready and help them get ready faster. That’s where the rubber meets the road for LOs and real estate agents.”

> Doug Nesbit, Director of Affordable Finance and Fair Lending, CMG

WHAT’S IN IT FOR LOs?

“This is a game-changer for loan officers and real estate agents because it allows you to engage at this super early stage when people are still getting their act together, dreaming of buying a house,” Nesbit says. “The huge thing we’ve realized the last few years on HomeFundit is the difference between prospective and current homebuyers. We’ve tended to lump them all together as buyers but there’s a big difference. This really allows us to engage with people who are not ready and help them get ready faster. That’s where the rubber meets the road for LOs and real estate agents.”

Agents can set up their own HomeFundit portals, offering buyers the chance to launch a campaign. About 4,000 agent portals are buzzing around the internet.

“Many times a buyer starts at the real estate agent end; many times they start at the LO end,” Nesbit says. “Either way we can deploy HomeFundit to a buyer through those channels.”

More than 95% of campaigns that begin raising funds reach completion, meaning they get to the point where the individual is headed to closing.

“It’s a significant chunk of our first-time buyer business,” Nesbit says, adding, “We see downstream business coming in like crazy for folks that have larger campaigns. More donors means more points of referral for an LO, as all those donors have their own networks.”

That long list of elderly borrowers who bought their home decades ago? The “call me when your kids are ready to buy” promise can get lost in time.

“One of the great ways to monetize a client list is to let your older clients who have dependents hoping to buy a home someday know about this program,” Nesbit says. “Tell them, ‘we’ve got this great new tool that can help your kids buy real estate sooner.’ It’s a way for you to take an older client who’s non-monetizable and reach the next generation of buyers.”

He prefers not to call it crowdfunding.

“I like to say this is the first and only online, down payment gifting platform,” Nesbit says. But it’s not the only one — not anymore.

THE OTHERS

Downpayment.gift was launched in 2020 by Loren

Winzeler, former loan officer

and branch manager of Frost Mortgage in Santa Rosa, Calif. This site invites any MLOs to partner with the downpayment registry software (free trial, then fee-based) to get connected with campaigns and close more purchase loans.

Feather the Nest and HoneyFund are similar platforms. The latter started as a donation platform for honeymoons but has since expanded.

GoFundMe, still the most widely-used crowdfunding platform, also has users that are fundraising for down payments.

Down payment crowdfunding has earned the stamp of approval by real estate agents and others in the homebuying industry.

On its YouTube Channel, eXp Realty’s Myrtle Beach-based Hereda Team’s Tiffany Hereda encouraged borrower-hopefuls to consider the benefits of crowdfunding down payments.

“You don’t have to meet any income requirements to qualify; you can purchase any home in any location; you don’t have a requirement of how long you have to live in your home after closing … basically you don’t have any of those restrictions that can come along with the traditional down payment assistance programs that are out there,” Hereda said.

Mike Grumbles, who owns Gray Fox Realty in Franklin, Tenn., helped his daughter start a HomefundIt campaign before she graduated from college and started her new job in a new city. “Instead of getting a gift that depreciates, it’s way better to get a gift that’s going to help me purchase something that will appreciate,” the elder Grumbles said. “Home prices will outpace your ability to save and buy a house in this market. The more people we can get into homes that they’re owning and out of rentals the better the US economy is going to be as a whole.”

IT TAKES A VILLAGE

aybe they’re not digging a foundation and raising beams, but a community does indeed surround each and every person who achieves their home sweet home through online down

“People are always surprised how many people helped,” Nesbit says. “When we talk to folks after a campaign they will say, ‘it’s not so much how much I raised from each person, but it’s the fact that I had support from those people, they were with me for the process.’ This is a fantastic way for a whole family and friends to help young people get ready to buy a home sooner.” n

> Tiffany Hereda, eHereda Team, eXp Realty

The Greatest Mortgage Conference in the Known Universe

Thousands of originators from around the country got the tools they need to survive at Originator Connect ™ in Las Vegas, Nevada, August 17–19, 2023. They also got a rare glimpse at five mega-brokerages that battled for dominance in a first-of-its-kind, no gloves

match up. LO’s got a chance to hear why Mike Kortas of Nexa Mortgage, Thuan Nguyen of Loan Factory, Daniel Iskander of West Capital Mortgage, Pablo Martinez of Equity Smart Home Loans, and Joseph Shalaby of E Mortgage Capital, think their companies are the best. They also discussed what it’s like to be an

independent broker. An exhibitor expo gave attendees the chance to see all the latest products, technology and trends. Attendees also got to learn about working with private lenders at the Private Lender Summit ™ and how to break out on their own at Build-A-Broker ™ And National Association of Realtors Chief Economist

Lawrence Yun dazzled the crowd with his knowledge of what’s happening with Treasury yields and why mortgage rates could continue to go up in the future. But Originator Connect wasn’t all business. Attendees let loose at the Classic Hollywood party and embraced their inner Charlie Chaplin!

Events for mortgage brokers & originators.

Connecting you to the story of your success.

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Captain America Meets Life Alert Lady

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:

Ijust 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.

• • •

What a proud dad today! I am in Santa Rosa, CA this morning helping my son and his fiance move into their first home! I am so excited for them.

• • •

I don’t like making plans for the day because then the word “premeditated” gets thrown around in the courtroom.

• • •

A husband and wife were just heading out for a night on the town. As they are stepping out the door to catch their Uber, the neighbor’s cat runs into their house. The husband runs back inside to catch it and the wife gets into the Uber. She doesn’t want the driver to know that no one will be home, so she tells him that her husband had just run upstairs to tell his mother goodbye. Several minutes later, her exhausted husband climbs into the car, saying, “Sorry I took so long. The stupid idiot was hiding under the bed, and I had to poke her several times with a coat hanger before I could get her to come out!”

• • •

If you put dry teabags in shoes, they absorb the odor. So, your shoes smell good but the tea tastes so bad it’s almost not worth it.

You’re only given one little spark of madness. You mustn’t lose it. – Robin Williams •

It’s been a bit of a strange day. First I found a hat full of money and then I was chased by an angry man with a guitar.

• • •

I was attacked by my Captain America office chair. This chair has oversized wheels, which makes it glide very smoothly. My fan had blown a piece of paper I needed off of my desk and onto the floor behind me. I casually rolled the chair back and grabbed the paper off the floor. I did not realize I had rolled off the edge of the chair’s plastic floor pad. As I went to roll back to my desk, the legs on the chair were in a sort of V pattern as I hit the edge of the floor pad. Immediately the chair began to tip forward. I reached for just about everything I could to stop the tipping, but those wonderful wheels were already smoothly gliding in the wrong direction. The next thing I know, I am sprawled out on the floor with my chair on top of me like an MMA fighter going for the tap-out. I started assessing the damage, doing a virtual systems check of my body to see if I was injured. Of course, I was fine, but I looked like the old lady in the Life Alert commercial. That vision in my head caused me to lie there laughing. Just another day in the life of Nick Roberson. Who else can say they were assaulted by a Captain America chair? I’m truly a Marvel. Pun intended.

It’s hard to explain puns to kleptomaniacs because they always take things literally.

Police have tragically confirmed that the man who fell from the roof of an 18th-floor nightclub was not a bouncer. n

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

Nick Roberson