NMP National Mortgage Professional June 2024

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> Despite battling two cancer diagnoses, Kevin DeLory refuses to step back from his leadership role at Equity Prime Mortgage, stating that work is his energy source and what heals him. CONTENTS

STORY PAGE 64

CANCER CAN’T STOP KEVIN

Overcoming two cancer diagnoses and a lifetime of challenges, DeLory drives Equity Prime Mortgage’s wholesale division to new heights with unmatched determination and resilience.

mortgage lenders for diversity, inclusion, and addressing the unique challenges faced by the LGBTQ+ community in

2024 PRISM AWARDS

Refi-Ready or Not, Here Comes the Cash Wave

Uncovering the surprising career paths that lead to the mortgage industry.

Defense Against Rejection Inside the glass house, loan officers need resilience as they navigate rejection in real estate dynamics.

Breakers Dealing with co-workers who toe the line.

As mortgage rates flirt with the 5.875% mark, industry leaders gear up for a potential $4 trillion refi surge.

on the

who the movers and shakers are in the mortgage industry.

the fascinating origins of sliced bread and other revolutionary inventions that remind us of the power of perseverance.

Benchmarks and Best Practices: Find Your Purpose, Fuel Your Passion Discover how reflecting on your purpose can reignite your passion and elevate your impact in the mortgage industry.

My Best Deal: From Co-op Woe To Two-Family Glow Transformed from co-op rejection to two-family joy, clients find $340K dream home solution.

As mortgage rates fluctuate, brokers face escalating conflicts over Early Pay Off (EPO) penalties, sparking debates and backroom deals.

40 Behind The Mortgage Lens

Behind the scenes of L.O.

Confidential: A Season on the Street, where mortgage mavens take the spotlight in a groundbreaking series.

50 Title Trouble: Government Proposals Risk Mortgage Market Stability

Navigating uncharted waters with title waivers and alternative insurance products.

56 A Cheesy Journey To Mortgage Mastery

Peter ‘Trip’ Topken III’s path from cheese mishap to NEXA mortgage success.

STAFF

Vincent M. Valvo CEO, PUBLISHER, EDITOR-IN-CHIEF

Beverly Bolnick ASSOCIATE PUBLISHER

Erica Drzewiecki, Katie Jensen, Ryan Kingsley, Sarah Wolak STAFF WRITERS

Dave Hershman, Erica LaCentra, Harvey Mackay, Lew Sichelman, Mary Kay Scully CONTRIBUTING WRITERS

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

Krystina Coffey, Matthew Mullins MULTIMEDIA SPECIALIST

Alan Nero MEDIA SPECIALIST

Melissa Pianin

MARKETING & EVENTS ASSOCIATE

Kristie Woods-Lindig ONLINE ENGAGEMENT SPECIALIST

Joel Berman FOUNDING PUBLISHER

Lydia Griffin MARKETING INTERN

And Now For Something Completely Different …

For those with a penchant towards quirky British humor, the headline of this piece should be very familiar. It was a signature line in Monty Python’s Flying Circus when the show wanted to cut from one particular sketch into another that was, well, completely different. You might be watching a sketch about someone trying to return a dead parrot, and suddenly find yourself watching grown men strutting ludicrously as part of the Ministry of Silly Walks.

The fans of the show have made the phrase something of a meme, even long before “memes” were a thing. In life, it’s a turn of phrase that literally means suddenly having to cope with something unexpected (not unlike how “No One Expect The Spanish Inquisition!”) or, of course, completely different.

Our writers keep finding stories like these. This is an industry that is all but built on the notion. Who, after all, grows up thinking, “I want to work in mortgages!” except perhaps the children of successful brokers. No, more often it’s someone

who was on a much different path, who stepped into this industry as a side gig, or by accident, or just to fill in between other jobs. And then, they stayed and found a place to build a career. So, for the next few issues, you’ll see some of these stories — the music producer who was lured by the industry’s siren song, the youth pastor who found the calling to teach mortgage pros how to better serve clients, the son of Indian immigrants who followed his parents into mortgage finance but augmented it with his own love of technology. In these stories, we find empathy, education and enlightenment about what drives the best in the business, so that it can drive us, too.

Of course, not all surprises are centered on the job itself. In this issue, we talk to Kevin DeLory, an executive at Equity Prime Mortgage, whose brush with cancer forced his priorities to pivot and which gave him a tighter perspective on what’s important in leadership. It’s also the story of how having colleagues and friends who are there for you can make all the difference. Just like, say, the folks who were the creative team of Monty Python’s Flying Circus.

And now for something completely different …

VINCENT M. VALVO Publisher, Editor-in-Chief

Submit your news to: editors@ambizmedia.com

If you would like additional copies of National Mortgage Professional, call (860) 719-1991 or email subscriptions@ambizmedia.com www.ambizmedia.com

Taking It Personal Dealing with rejection

is tough. You have to be, too.

BY DAVE HERSHMAN, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

There is no doubt that being inside a real estate office will put a loan officer in touch with a plethora of opportunities. However, these opportunities come with many costs. One of the most significant costs is the personalization of rejection.

A salesperson’s ability to recover from rejection is one of the most salient traits of success. There are many ways an originator might experience rejection — including unreturned phone calls, refusal of meeting requests, and, of course, losing a loan because of myriad reasons. When a milliondollar refinance walks two days before settlement, the typical loan officer suffers from an awful feeling in the pit of their stomach.

When you are a “street” loan officer, rejection from real estate agents is not unusual. Many already have relationships and they will use just about any statement to ward off inquiries. My personal favorite is: “I am a listing agent, so you don’t need to call on me.”

What is laughable about this statement is that listing agents tend to be top producers. Which means that they transact more sales than the average agent. When

they sell a listing for someone who is going to purchase another house, do you think they tell them to go find another agent? They might assign that task to a member of their team, but it is still their client. However, it is an easy way to get rid of most loan officers. And the loan officer’s research should have told them that they were a listing agent before they ever approached the agent. This is why I advise loan officers to reply to this question with this statement: “That is why I am interested in working with you. I specialize in helping listing agents find more listings, sell them more quickly and turn them into lead machines.”

A SLAP IN THE FACE

Now back to serving a real estate office from the inside. What is so different about rejection in this situation? It is more up close and personal. Imagine

A salesperson’s ability to recover from rejection is one of the most salient traits of success.

working in the office and a top agent arrives with a sales contract in hand and their favorite loan officer is financing the deal. What’s more, the deal is closing in two days and thus the loan officer can’t even offer a second opinion.

Obviously, the loan officer never heard about the sale until now. One hour later, they are in an office lunch or sales meeting with that agent — exchanging pleasantries. Sure, the loan officer would like to stand up and say something like, “What’s the deal?” (that is the clean version).

But they can’t. Taking an antagonistic approach is not going to help them develop a relationship with the agent and a confrontation in front of the office would be devastating. But you can see how more “up-front and personal” this rejection is than what might be experienced by a street, remote, or bank loan officer.

Instead, they must suck it up and congratulate

the agent. Going a step further, they should also offer their help if any is needed, and they should not forget to ask if the agent has any other prospects they are working with. Asking for a referral when the agent is feeling a bit guilty is not a bad approach.

The bottom line is that the more opportunities an officer presents, the greater the opportunity for rejection. Any loan officer who does not ask for the business does not witness as much rejection. But in the case of being inside the glass house, you can’t have a glass ego. n

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

ERICA LACENTRA

Mind Your Toes

Tips for handling coworkers who overstep their boundaries

BY ERICA LACENTRA, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

When it comes to having a well-functioning workplace, it is critical that team members and co-workers have a certain level of trust and respect for one another. However, it’s likely that at some point in your career, you will encounter a co-worker who seems to constantly overstep their boundaries. They may try to oversee tasks that fall outside their wheelhouse, take over projects in an attempt to get the credit and glory, or give you or other colleagues orders even if they don’t manage you directly.

While it can be an unfortunate annoyance if it’s happening on a one-off basis, it can be downright disruptive and counter-productive for you and your business if it is a frequent occurrence. When you identify a co-worker who is pushing the boundaries of their role, it can be important to address it headon before it becomes a bigger problem. So, if you have a colleague who is really starting to step on your toes, what can you do to stop this behavior in its tracks?

ASSESS THE SITUATION

In a case like this when a coworker is crossing your boundaries or undermining your contributions, you will likely want to react immediately

to nip this behavior in the bud, however, it is important to take a step back and assess the situation as a whole before determining your next step.

First, you want to make sure you are approaching the situation rationally. Can it be extremely frustrating when your colleague oversteps or makes you look bad? Absolutely, but take a step back to settle your emotions and look at the scenario more pragmatically. Are you potentially misconstruing their behavior? Is this a one-off situation or has the coworker continuously displayed this behavior towards you? If it is the first time this has happened, you may likely be dealing with an over-eager colleague who didn’t realize what they were doing and did not mean any ill will towards you. In this scenario, a polite straightforward one-on-one conversation is best. Explain what actions they took or what behavior they displayed towards you that you felt crossed the line and give your colleague a bit of grace to be able to correct their actions.

Next, if you have identified that this is a recurring problem, you will want to look at each situation individually to determine if there are any common threads as to why this could be happening. Is this only happening with certain projects? Maybe your colleague is not pleased with the work you’ve been contributing and took things into their own hands, or maybe tight deadlines put extra pressure on your coworker where they felt the only solution was to take on more to get things done.

If you find your colleague is overstepping in most situations, it could also be a case where they are looking for more recognition, trying to establish more authority, or maybe they don’t feel like their ideas are being heard. Identifying when this

When you identify a co-worker who is pushing the boundaries of their role, it can be important to address it head-on before it becomes a bigger problem.

behavior is being displayed can be key to the strategy you want to take when speaking with your co-worker. You should always stick to the facts of the situation rather than tossing in assumptions to an already tricky conversation.

APPROACH WITH PROFESSIONALISM

You’ve analyzed the situation, you’ve gotten your facts together, and now comes the hard part, having a potentially difficult or uncomfortable conversation with your co-worker. It is important to approach this conversation with professionalism and tact so that things don’t wind up even worse. You want to go in with the mindset that you are working toward a solution that will make both of your working relationships in the future more positive.

than dictating an appropriate resolution(,?) will also make your colleague feel heard and they will be more likely to build towards a good path forward.

Once you have had that conversation with your colleague, you will likely want to clue your boss in on what’s happening. Your boss needs to be aware of any issues that are occurring between you and a colleague in case they pop up again and it will be good for them to know what the plan is for you both to have a positive working relationship going forward.

REINFORCE YOUR POINT AS NEEDED

Hopefully, the steps you have taken will remedy the situation and you will have a much more productive relationship with that colleague going forward. However, not every situation will be resolved after a single conversation. Be cognizant of how things are going post-conversation and leave the lines of communication open with that co-worker. Check-in in a friendly manner and if things start falling off or they start falling back into their old habits, don’t be afraid to speak up and remind your colleague of what you had previously talked about.

You should always stick to the facts of the situation rather than tossing in assumptions to an already tricky conversation.

You need to be ready to also hear your colleague’s perspective and take their feedback as well. Again, make sure your conversation sticks to the facts rather than your assumptions about the situation, state your thoughts, take in their input, and work towards a solution forward. Working together, rather

It’s okay to stand your ground and respectfully reinforce your point to avoid future issues. Having a colleague who repeatedly steps on your toes can be challenging to navigate, but with the right approach and willingness to work with that individual, you should be able to create a more harmonious professional relationship. n

Erica LaCentra is chief marketing officer for RCN Capital.

Ready, Set, Refi?

Lenders prep for possible refi bonanza

BY LEW SICHELMAN, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Alikely refinance boom is on the horizon. If rates drop much below, say, 6%, something like $4 trillion worth of mortgages will be refiable. The question is, will you be ready for the onslaught?

Mat Ishbia certainly intends to be. The chairman of United Wholesale Mortgage thinks a “monstrosity” of an opportunity is building, and he’s going to be ready, he said during a recent earnings call.

There’s already been a mini-boom of sorts. In February, Fannie Mae, Freddie Mac, and Ginnie Mae securitized more than $12.5 billion in refinanced loans. That’s up nearly 42.5% from January when rate-term refi volume increased 22% from December. And for the first week of March, the Mortgage Bankers Association reported that its refi index increased 12% from the week before and was 4% higher than a year ago.

But Ishbia believes a larger wave, perhaps even a tsunami, may soon be at hand. He doesn’t know how long the burst will last, maybe three months or maybe three years. “But I’m going to be ready, and we’re going to be ready at when nobody else is,” Ishibia said on the call. And when it does come, he said, “it’s going to be pretty big.”

The UWM chairman doesn’t know exactly at what rate the floodgates will open, either.

But he suggested that 5.875% could be the point at which the boom begins.

WHAT’S UP

Joe Garrett, one-half of the banking and mortgage consulting firm of Garrett, McAuley & Co., picked up on Ishbia’s remarks in a recent company newsletter and asked his readers, “Are you, or will you be, ready?” So I decided to ask around to see if folks are doing anything to be ready, and if so, what exactly are they doing to prepare?

“If a refi tide comes in, we’ll find out very quickly who is exposed.”

>Joe D’Urso, CEO, TitleEase

Plaza Home Mortgage co-President Jeff Leinan is not pinning his hopes on a surge in refis. Instead, the privatelyowned San Diego-based wholesale and correspondent lender is looking for “significant growth” in the purchase money sector, which Leinan calls the company’s “strong suit” given its broad array of loan options and its strong relationships with brokers.

“If rates drop to the mid-5s or lower, our industry will see a significantly larger purchase boom because affordability will improve and unlock lots of golden handcuffs that have been keeping sellers and

and we’re going to be ready at UWM, when nobody else is.”

> Mat Ishbia, chairman, United Wholesale Mortgage on the potential refi ‘tsunami’ approaching.

inventory out of the market,” Leinan says. “There’s a lot of pent-up demand out there,” he adds, citing a recent study that found 89% of owners would consider a move within the next 12 months if rates dipped below 6%.

Not that Plaza is turning its nose up at refis. Far from it. But Leinan doesn’t believe the pool of anxious borrowers who are ready to jettison their higher-rate loans is as large as some prognosticators think. Only half of the 2023-vintage mortgages would be eligible to refi if rates dipped below 6%, he says.

By the MBA’s projections, that’s roughly $650 billion worth of loans that might be in the money. At 6% or lower, then, as many as 3.8 million borrowers would be eligible to refi. That’s a powerful lot of business. But the Plaza executive says he’s not confident they all will pull the trigger.

“About half that number were eligible in the past and didn’t refi. The question is why?” Leinan says. “Maybe their economic circumstances are an issue, or they have small balances and are close to paying off their loans. About a third of that number have had their loans over 15 years. But if they haven’t done it by now, what is the likelihood they will in the future?”

SERVICE AT THE READY

“We are ready,” says Toby Wells, president of Denver, Colorado-based Cornerstone Servicing, which

administers 60,000 or so mortgages.

As a division of Cornerstone Capital Bank and a third-party subservicer, the company always tries to keep its loan officers in front of its customers. And with the new data-based systems that are available today, it’s much easier to identify those seeking lower rates.

“It’s a lot different from the old days,” Wells told me. Cornerstone is still pushing leads to its loan officers, but now it’s in “a much better position” to evaluate those customers who would truly benefit. “We’re not just making annoying outbound calls to all our customers just because mortgage rates are lower,” he explains. “Rather, based on known credit information, income, and other data, we’re contacting customers who are likely to refinance.”

There are “numerous” new tools to help companies like Cornerstone evaluate their portfolios, says its president, and it is making use of a number of them.

With this obvious caveat — it all depends on how low mortgage rates decline — Ryan Hardiman, president of Middletown, R.I.-based Embrace Home Loans, believes the entire industry “should prepare” now to refi borrowers who purchased their homes between late 2022 and all of 2023.

Toward that end, Embrace, one of the largest full-service lenders in the country and licensed in all 50 states plus the District of Columbia, has developed a separate “manufacturing process” for fulfillment to

Insurance-Free Refis?

At this writing, details of Fannie Mae and Freddie Mac’s pilot programs to purchase “certain” refinance loans that do not come without title insurance are sketchy. But by now the experiment is well underway despite the loud protestations of the title business.

The “small scale, limited

duration” pilot is expected to cut closing costs by an average of $750 — but up to $1,500 — on loans where “there is confidence” there are no prior liens or encumbrances on the underlying properties. Only mortgages with 80% of lower loan-to-value ratios in “select” geographical areas need to apply. Of course, the GSEs will charge a

fee — an amount unknown at this time — to cover their risk.

The Federal Housing Finance Board has promised robust oversight. And well it should, says the American Land Title Association. Already at odds with attorney opinion letters, which Fannie Mae and Freddie Mac began accepting in lieu of title coverage

support refinances. And Hardiman says he has “options to create capacity” without the need for hiring internally. That’s “something we believe will allow us to scale effectively when capacity needs to be expanded,” he says.

When rates do improve the Embrace leader is expecting borrowers with heavy debt loads to seek out cash-out refis. “With consumer debt at record highs and the cost of living putting an extra strain on finances,” he says, “we should see cash-out refinance opportunities for consumers to help alleviate these burdens.”

Currently, home equity lines of credit are a “very popular choice” among those with low-rate first mortgages who want to access their homes’ equity. As prime rates have risen, HELOCs have been less attractive, Hardiman says. “But they continue to be a good option for some homeowners looking for interest-only payments” and consumers should be more drawn to them as rates improve.

NO FLOOD WARNING

Still, Embrace doesn’t see a flood of refis on the horizon — or even a huge jump in purchase lending — largely because most owners are all but locked into lower rate loans, the so-called “lock-in” effect. Pointing to a recent Redfin report, Hardiman notes that 88.5 % of all homeowners have loans with rates less than 6 %, and 78.7 % of them have rates below 5 %. Consequently, he says, they’re not likely to

refi or sell and move up (or down).

Any rate below 6% will “seriously energize” borrowers who have loans with rates just 50 basis points higher, offers Larry Goldstone, president of capital markets and lending at BFI Financial Services. They’ll be drawn not just to rate-and-term refi, though. Lower rates, he says, should also “trigger a wave” of folks who have been waiting to take cash out of their appreciated houses or get out from under high-rate second mortgages.

Moreover, Goldstone doesn’t buy into the premise that borrowers with 3% mortgages will never give up their low-rate loans, prepay, or even sell and move to another joint. “Feeling ‘loan locked’ is a psychological problem that borrowers will get over if they wish to change where they live,” he told me. “I’ve seen this before. Most Americans are, by nature, on the move. If they take a new job in another state or simply want to move across town, they’ll trade down or trade up to do so.”

BSI, which originates and services and sub-services mortgages and sells mortgage loans to permanent investors. is “absolutely” preparing for when the market breaks loose from the doldrums. “We are planning to recruit loan officers and back-office support staff,” says Goldstone.

“We are already carrying excess staff capacity in anticipation of an increase in first mortgage lending. Our strategy includes focusing on self-service by providing a seamless experience for borrowers who submit

in 2022, ALTA argues that the test expands the government-sponsored enterprises’ authority beyond their mission and charters. It also puts the agencies in harm’s way.

“If title concerns arise under the pilot, mortgage companies would expect the GSEs to settle the issue, exposing lenders and taxpayers to greater risk,” says ALTA President

Diane Tomb. “The last time the GSEs engaged in significant risk-taking, they imploded the housing finance system and [the] American economy.”

Tomb also warns that if the pilot becomes standard operating procedure, it could decimate the title business, 90% of which is made up of small, local companies.

This winter, Fannie announced

the full-scale availability of a onestep validation process under its Desktop Underwriter program for borrower assets, income, and employment with a single report. The process began as a pilot originally launched in 2017. Just thought I’d mention that.

~ Lew Sichelman

applications online, which allows us to scale without adding staff. We also are sharpening our call center capabilities to allow us to quickly identify borrowers who are eligible to refinance to be routed to a loan officer for a conversation.”

The Irvine, Texas, company also is investing in technology and data analytics to allow it to produce more loans per employee. Internally, BFI’s data warehouse allows the company to segment borrowers into categories so it can present them with relevant offers for specific loan types. And it can stratify the data by the borrower’s rate, location, credit score, original LTV and estimates of current LTV. Externally, meanwhile, it employs software to identify the location of mortgage notes, recorded deeds of trust, and other key documents that help qualify borrowers “as seamlessly as possible.”

“If rates drop to the mid-5s or lower, our industry will see a significantly larger purchase boom because affordability will improve and unlock lots of golden handcuffs that have been keeping sellers and inventory out of the market.”

> Jeff Leinan, Co-President, Plaza Home Mortgage

“All of this information helps us better understand and serve our customers,” Goldstone told me.

Joe D’Urso is another who isn’t convinced a new refi wave is on the way, “At least not in regard to timing,” says the president and CEO of TitleEase, the Providence, R.I.-based national title services firm. But if it comes, he’s pretty sure the mortgage business can handle it.

TECH INITIATIVE

“While some players will probably not be ready,” D’Urso says, “the industry as a whole has done an excellent job of staffing up in prior years to meet extreme volumes and I believe it can do so again.”

How well individual players respond remains to be seen. But the TitleEase leader believes technology will be a key factor. And on that front, there’s a “long way to go,” he told me.

When loan volumes were soaring several years ago, most lenders and service providers were too busy

to make deep investments in process improvements and technology enhancements,” he says. “Even though there is generally less free cash to make those investments when volumes diminish, technology needs to be embraced now more than ever.”

As D’Urso sees it, if there is another wave, there will be the usual haves and have-nots. “The companies that have embraced technology to make their processes more efficient — as well as those that have broadened their offerings with ancillary business lines — will be the winners, while the others will be behind the eight ball and struggling just to tread water.”

On that score, he is reminded of the famous Warren Buffet quote about the insurance marke: “You only find out who is swimming naked when the tide goes out,” Buffet said. To which D’Urso adds, “If a refi tide comes in, we’ll find out very quickly who is exposed.” 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.

HOW

> Xactus appointed Danielle Walker as senior vice president of business development. Previously, Walker served as the vice president of product development.

> Erin Dee took on a new position as Chief Operating Officer at InterLinc Mortgage.

> AnnieMac Home Mortgage welcomed Ian Aubourg as the newest addition to its leadership team, serving as Senior Vice President of Retail Sales.

> Equifax recently announced that Barbara Larson, former Chief Financial Officer for Workday, has been elected to its board of directors.

PEOPLE ON THE MOVE // YOUR FIRST MILLION DOLLARS

Persistence … It’s Never Too Late

How to be the best thing since sliced bread

BY HARVEY MACKAY, SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

We’ve all heard the expression “the greatest thing since sliced bread.” But how did sliced bread originate?

The Anecdote International website provides the story. In 1912, the son of a German immigrant had an idea: People might want to buy bread that was already sliced instead of having to cut it themselves. Otto Rohwedder was 32 when he had his brainstorm, and he spent five years developing the first commercial-grade machine for slicing bread. Instant success, right? Not exactly. Even

> Carrington Mortgage Services welcomed Steven Winokur as the vice president of marketing, third-party originations.

> Planet Home Lending has hired Paul Walker to be its Chief Financial Officer.

though his family and friends were sure it would be a big hit, it took Rohwedder 10 years to sell his first bread slicer.

The struggling Chillicothe Baking Company was the first company to purchase one. However, after using Rohwedder’s invention, sales rose 2,000 percent in a matter of months.

And once other companies saw how useful the bread slicing machine was, it began selling at a brisk pace. Soon every bakery wanted one. Sandwiches have never been the same.

DETERMINED TO WIN

Persistence and determination are what keep us hammering away. I don’t know any entrepreneurs who have achieved any level of success without those two traits. When you have a dream that you can’t let go of,

> Todd Lautzenheiser joined Newfi Lending as SVP, Correspondent Sales. Lautzenheiser will lead several account executives who have also joined Newfi Correspondent.

> Oklahomabased Gateway First Bank has appointed Jonathan Wallace as Chief Financial Officer.

When you have a dream that you can’t let go of, trust your instincts and pursue it.

> Floridabased A&D Mortgage announced its appointment of Andrey Gunin as its new Chief Financial Officer.

> Rocket Companies announced Shawn Malhotra as its first-ever group Chief Technology Officer (CTO) and will oversee the development of technology across the entire Rocket Companies’ ecosystem. > City National Bank has hired Rick Bechtel as Executive Vice President of Mortgage & Residential Lending.

HAVE A NEW HIRE OR PROMOTION TO SHARE? Submit the information to editors@ambizmedia.com for possible publication. Announcements should include a headshot.

trust your instincts and pursue it.

Author Malcolm Gladwell explained that it takes 10,000 hours of practice to become an expert in something. Ten thousand hours is roughly 5 years of full-time work at 2,000 hours per year. If you do it as a hobby for 10 hours a week, it will take you 20 years to get to expert level.

We won’t all become experts, but we can all keep hammering away until we can make it work.

Look at some of the great inventions of our time, such as the telephone. Alexander Graham Bell approached American communications company Western Union and offered them the rights to his patent for $100,000, but company bigwigs balked at the proposal citing the “obvious limitations of his device, which is hardly more than a toy.” Undeterred, Bell established the Bell Telephone Company in 1877 and less than a decade later, more than 150,000 people were the proud owners of telephones in the U.S.A.

What do you suppose Bell would say about the phone in your pocket now?

Television is another invention that took a long time to get going. In 1926, American radio pioneer Lee De Forest said television was a commercial and financial impossibility. Twenty years later, people were still not convinced. In 1946, film producer Darryl Zanuck said, “People will soon get tired of staring at a plywood box every night.”

According to estimates, there were 123.8 million TV homes in the United States for the 2022-2023 TV season. And the number of TV households continues to grow.

Personal computers were much the same. In 1949, one year after the world’s first stored program computer made its debut, a mathematician declared: “We have reached the limit of what is possible to achieve with computer technology.”

Even as the capabilities and functions of computers grew, there were naysayers like Ken Olson, founder of the computer company Digital Equipment Corp. who said in 1977 “there is no reason anyone would want a computer in their home.” Nearly 80 percent of all American households now own a computer.

As a business owner I am grateful that their

persistence paid off. I clearly remember the old-school methods of ordering, production, delivery, and followup. I’ll take our office computers any day.

We won’t all become experts, but we can all keep hammering away until we can make it work.

Cell phones also took a long time to catch on. My first cell phone from the 1980s was the size of a brick with a short-life battery. Even Motorola, who pioneered the cell phone, failed to see its potential in 1981. Now we are lost without our cell phones. Believe it or not, online shopping didn’t catch on for a long time either. In 1966, “Time Magazine” ran an article that claimed: “Remote shopping, while entirely feasible, will flop because women like to get out of the house, like to handle merchandise, like to be able to change their minds.”

Approximately 76 percent of U.S. adults now shop online, and annual retail e-commerce sales hit $5 trillion worldwide. Imagine surviving the pandemic without the convenience and selection available from the gazillion websites that we browse daily.

All because someone saw the value in reaching a broader audience and didn’t stop until they figured out how to do it.

As comedian Steve Martin said, “Thankfully, persistence is a great substitute for talent.”

Mackay’s Moral: Good things come to those who persist. n

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

ORIGINATOR TECH RESOURCE GUIDE

wemlo

Boca Raton, FL

Area of Focus: Loan Processing

Third-party processing service, wemlo, empowers mortgage professionals through transparent, flexible, and efficient loan processing. To better serve our customers and their borrowers, wemlo proudly offers processing support in 47 states (plus Washington DC) for more than a dozen loan products including Conventional, FHA, Jumbo, VA, and Non-QM.

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

Zero 1 Solution LLC

Stockton, CA

Area of Focus: Software

1Solution Mortgage allows you to Originate, price a loan scenario with proposal, CRM, Marketing and more …

• Scenario

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Licensed In: All U.S. States, U.S. Virgin Islands Find the full Originator Tech list on page 83

WHOLESALE LENDER RESOURCE GUIDE

ACC Mortgage Rockville, MD

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

ACCMortgage.com

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

Newfi Wholesale Emeryville CA

DSCR, Bank Statement, 1099, Asset Depletion, Buydowns, Full Doc Non-QM

No one knows Non-QM like us. Newfi Wholesale is an exception-based Non-QM lender dedicated to helping brokers find success. We offer a full Non-QM product suite including: Full-Doc, Bank Statement, 1099, Asset Depletion, Interest Only, Non-QM ITIN, Non-QM Buydown, DSCR 1-4 & 5-8 Units, DSCR Condotels, Graduated Payment Mortgages, and more. At Newfi about 1/3 of our funded deals have exceptions that we make in-house!

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

KNOW IT ALL. Way more than a magazine.

Stronger Stories

We discuss the issues in the industry others may be too wary to touch, and we never let advertise relationships affect our stories.

Hands-On Advice

Find actionable advice from professionals across the industry with tips to further your career, grow your business, and more.

Industry Insights

Don’t just read the news — understand it. Find insightful articles from leading industry voices to help digest all the changes in the industry.

Find Your Purpose, Ignite Your Passion

Overcome the ‘passion gap’ to stand out

BY MARY KAY SCULLY, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

“P

urpose is the reason you journey. Passion is the fire that lights the way.” ~ Anonymous

I have loved this quote recently because it really makes me think. What am I doing and, most importantly, why am I doing it?

In this business, you may feel like a mere order taker for a 30-year fixed-rate mortgage. But while that may get you by, it’s not going to feel very fulfilling. It’s hard to wake up every morning excited for the work that lies ahead of you, but taking the time to reflect on your purpose in this industry — and the passion that got you here in the first place — not only helps you make progress professionally, but helps you better serve your borrowers.

PASSION AND PURPOSE

According to Deloitte, America’s workforce has a “passion gap.” Less than 12.3 percent of America’s workforce possesses the attributes of worker passion: questing, connecting, and commitment. Deloitte’s study states, “each of these attributes leads to behaviors that drive sustained performance improvement and help people integrate knowledge from professional networks and lessons from difficult challenges into a disciplined commitment toward making an increasing longer-term impact.” The more passionate workers are, the more they realize their own potential and contribute to the success of their company.

In the mortgage industry especially, with its cyclical nature, it can be challenging to feel passionate about your work despite all the ups and downs. However, I am here to remind you of why you should be passionate about the work you do.

WHAT YOU DO MATTERS

Simply put, this job matters. In the mortgage industry, we are part of the biggest financial decision most people will make in their lives. It’s more than just selling a product — you are playing a part in what often alters the course of a household’s financial future.

Homeownership is a key way to build generational wealth. And the difference it makes is significant. NAR reported that homeowners’ wealth is 40 times higher than that of renters. Especially now, as buyers are spending more of their income on homes than ever, we play a critical role in getting them into the right home on the right terms.

In the mortgage industry especially, with its cyclical nature, it can be challenging to feel passionate about your work despite all the ups and downs.

It’s no surprise America’s workforce is feeling this gap in passion. Some workers have been in the same position for a long time and are feeling tired or bored, while others are still struggling to keep up with rapid post-pandemic change. Because of this, Forbes has reported that many workers feel their burnout is even worse than during the pandemic.

If you’ve found yourself losing your passion, take the opportunity to remember the part you can play in the trajectory of someone’s financial future. Your purpose as a mortgage professional is to help borrowers achieve the dream of homeownership, and the difference you help make in your borrowers’ lives is worthy of your passion.

HOW TO TRULY HELP

Because your job has a significant impact on borrowers’ financial situations, it’s important to do everything you can to set them up for success.

Less than 12.3 percent of America’s workforce possesses the attributes of worker passion: questing, connecting, and commitment.

Your purpose is more than taking an application and pushing borrowers along to close.

There are many opportunities during the homebuying process where you can help empower borrowers to be better homeowners. Invest in borrower education to help them make the best financial decisions for their situation. To go above and beyond, provide them with homeowner resources to help them understand how to take care of their purchase, build equity and get the most out of their investment.

Newfi Wholesale Emeryville, CA

newfiwholesale.com (888) 415-1620 support@newfi.com

Your purpose is important — and your passion leads the way. Passion fuels enthusiasm and, as Henry Banks said, “a salesman minus enthusiasm is just another clerk.” Remember the impact of your work, and you’ll be positioned to help borrowers and be the best resource you can be. n

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

DSCR, Bank Statement, 1099, Asset Depletion, Buydowns, Full Doc Non-QM

No one knows Non-QM like us. Newfi Wholesale is an exception-based Non-QM lender dedicated to helping brokers find success. We offer a full Non-QM product suite including: Full-Doc, Bank Statement, 1099, Asset Depletion, Interest Only, NonQM ITIN, Non-QM Buydown, DSCR 1-4 & 5-8

PCV Murcor Pomona, CA

pcvmurcor.com sales@pcvmurcor.com (855) 819-2828

AREA OF FOCUS: Nationwide Real Estate Valuations Management — An Appraisal Management Company

DESCRIPTION OF PRODUCTS OR SERVICES: Licensed in all 50 states, plus D.C., PCV Murcor provides nationwide appraisal management and valuation advisory for residential and commercial real estate. With a foundation built on 43 years

Units, DSCR Condotels, Graduated Payment Mortgages, and more. At Newfi about 1/3 of our funded deals have exceptions that we make in-house!

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

of experience, PCV Murcor brings a deep understanding of our clients’ goals that complements appraisal modernization. Our use of state-of-the-art AI technology ensures precision and efficiency in every aspect of our service. Experience innovation-powered recision and timetested excellence with unparalleled service and cutting-edge products.

AMC RESOURCE GUIDE

NON-QM LENDER RESOURCE GUIDE

YOUR CAREER IN HIGH GEAR

The face you know at the school you don’t.

Introducing Maximum Acceleration, your new, premier provider of continuing education.

We’re not just bringing you a lecture. We’re bringing you the fuel to spark your competitive fire, the plan to win the game on the merits, the confidence to know the rules and master them.

We’re Maximum Acceleration, and we’re where loan originators go to put their career in high gear.

— LaDonna Lockard, CEO

From Co-Op Conundrum To Double Delight

Name: Irene Amato

How much was your best deal worth?

$340,000.

What made it your best deal?

This client approached us to purchase a two-bedroom co-op with her son. However, the co-op did not meet the qualification criteria due to a pro-rata share. Additionally, the cooperative development had taken out a second mortgage, resulting in a mortgage balance that exceeded the guidelines set by Fannie Mae and Freddie Mac. It was the co-op that got declined, not the client. I explained to the clients that this decision was for their protection, as the co-op was not financially sound with the additional debt. Throughout my entire career, I have never had a client, knock on wood, who lost a house and did not find a better situation.

I suggested to the mother, “Your son

Job Title: Owner Business: ASAP Mortgage

is handy. Why aren’t you considering a two-family house? You can find one with two three-bedroom apartments to rent out, which will help you cover expenses. Plus, you’ll have a yard.” Initially, the mother didn’t think they would qualify for such a property, as nobody had ever suggested it to her before. However, two months later, they successfully closed on a twofamily property.

What else was interesting about the deal?

Three months later, they expressed to me that they believed they would not have lasted in a co-op. With their new twofamily property, they enjoyed having a yard, the ability to have a dog, and the

convenience of a garage, eliminating the need to park outside. Overall, it was a significantly improved situation for them. n

Have a great story about your best deal? We’re not talking about your biggest deal. We want to hear about your best deal - the one that resonates with you personally, the one that became the story you’ve told again about why you’re in this business. Head over to https:// nmplink.com/bestdeal and tell us the details. You could win a $100 Amazon gift card if your story is selected for publication. WIN a $100 Amazon gift card!

Welcome to The Greatest Mortgage Conference In The Known Universe.

The Originator Connect Conference is the nation’s largest gathering of mortgage professionals, and it returns to Planet Hollywood in Las Vegas this August 15-18 for another fantastic, session-packed event.

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FEATURING THESE EXCLUSIVE EVENTS:

Is It A Deal Or Chicanery?

Negotiating EPOs with lenders

BY KATIE JENSEN, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

The mortgage industry has seen a glimmer of hope as industry experts forecast declining rates in 2024.

The Mortgage Bankers Association (MBA), Lawrence Yun of the National Association of Realtors (NAR), Rob Chrisman, and other well-trusted sources have pooled their bets, with predictions on interest rates ranging from 7% to 5% for the end of the year.

Even though many industry experts were wrong in forecasting a rate decline last year, many originators are preparing for a potential resurgence in refinances this year. Whether those originators are right or just desperate for sales activity to pick up, the anticipation has sparked debate and conflict over early pay off (EPO) penalties. An EPO occurs when a borrower sells or refinances their home too early, which is defined in the lender’s contract and is typically four to six months after the loan is funded.

This can create a major dilemma for the originating broker. Doing an early refinance or sale may be in the client’s best interest, but investors in the secondary market count on making money off of interest revenue from the original loan. When an EPO occurs, the investor charges a penalty to the wholesale lender, and the lender charges a penalty to the originating broker — sometimes even if the borrower refinanced with a different lender — which can mean returning their

commission or paying 1% of the loan amount, depending on different lenders’ contracts.

But, no one was overly concerned over an EPO frenzy during the last refinance boom in 2021, so why raise the alarm now?

According to Redfin, nearly 80% of homeowners have mortgages with rates below 5%, having refinanced during the pandemic. The only borrowers expected to refinance or sell if rates decline in 2024 are those who purchased homes in the past 18 months, which increases the threat of EPO penalties for originators.

Generally, brokers cannot escape EPO penalties once the broker signs a lender’s contract, except by ending their partnership. Some brokers claim negotiation is possible if they generate enough business for the lender. But, those deals are shrouded in mystery, and according to some sources, not to be trusted.

EQUAL RISK

It may seem as if EPOs are solely a broker problem, but they can come back to bite wholesale lenders as well if their policy frustrates enough of their partners.

A cautionary tale for lenders comes from Christopher Foote, chief growth officer for Milestone Mortgage, who decided not to renew his company’s contract with PRMG Mortgage because of their buyback policy, which includes EPOs.

“Sometimes it can be to your own

Generally, brokers cannot escape EPO penalties once the broker signs a lender’s contract … Some brokers claim negotiation is possible … But, those deals are shrouded in mystery, and according to some sources, not to be trusted.

detriment,” Foote said about refinancing borrowers early. “But you also have to do what’s right for the client. And at the end of the day people need to save money in this economy.”

He said PRMG’s contract states they can force a broker to buy back a loan at any time and for any reason the lender deems necessary. Foote attempted to negotiate, saying that Milestone was PRMG’s top broker partner in Massachusetts, but they still refused to alter the contract. If brokers, like Foote, use their business as leverage to negotiate, it means reducing the amount of loans sent to that lender or canceling the partnership altogether.

“We loved working with them, but not under unreasonable terms,” Foote said. “Because, ultimately, they [EPOs] could bankrupt you.”

PRMG Mortgage did not respond to a request for comment.

Losing one broker partner is not detrimental to a wholesale lender’s business. But, if more top-performing partners decide to leave because they don’t want to be punished for going after refinances, it can negatively impact a lender’s market share.

It may not be feasible for most lenders to simply eat the penalty cost instead of having their brokers pay it, especially if they’re already struggling to maintain profitability in this market. That is why Jonathan Fowler, vice president of business development for American Financial Network Mortgage Inc., said it’s worthwhile for both wholesale and retail lenders to negotiate their EPO policy for top broker partners or top originators.

“If somebody’s sending me a hundred million dollars a month of business, and I lose a hundred thousand dollars one month on EPOs, can I raise their pricing by two basis points and recoup my money without ever causing a problem between the wholesaler and my customer, which

is the broker shop? Yeah. It’s probably a better business decision to change it by two basis points than it is to potentially ruin a relationship,” Fowler said.

Years ago, as a top producing originator for Allied Mortgage Capital Corporation’s Texas-based branch, one of Fowler’s investors would waive his EPO penalties, unbeknownst to Fowler.

“I asked the question, ‘I know that this sounds crazy, but why do I never get any buybacks from you?’ And they quite simply put it, ‘You’re sending me a billion dollars a month, why would I ever push a $30,000 buyback on you?’ ” Fowler said, recounting conversations with this investor.

Rocket Pro TPO cuts a deal with their top 20 broker and correspondent partners through its Pinnacle Program, where they don’t have to pay any fees if another originating company pays off the new loan early.

“An EPO is just to protect some of the losses from a lender standpoint,” said Rocket Pro TPO Executive Vice President Mike Fawaz. “The only time our broker is liable within our Pinnacle Program to pay an EPO is when they actively refinanced the loan … as long as you are not the one generating that loan, or the one proactively working that loan, you’re not liable for it.”

Fawaz said more top brokers are now showing interest in Pinnacle’s EPO fee waiver compared to when it initially launched during the previous refinance boom in 2021. He suggested that’s likely because the brokers anticipate the new refinances will be for borrowers who bought their homes more recently, after rates went up, increasing the risk of an EPO.

However, what makes Pinnacle especially unique is that it explicitly states Rocket Pro TPO selectively enforces its EPO penalties, unlike some lenders which have more of a secretive or unspoken agreement with their originator or broker partner, as in

the case of Fowler.

Fawaz recognizes that being explicit about the agreement is what protects brokers and makes the deal legitimate. Knowing the Pinnacle program has publicly established guidelines, Fawaz said brokers can trust Rocket to not renege on their promise, unlike what other lenders have allegedly done.

“A key differentiator between Rocket Pro TPO and our competition today is that our Pinnacle program protects the broker community when it comes to EPOs versus, ‘Hey, we’re gonna waive an EPO, but the moment you decide you’re not gonna do business with us, we’re gonna send you these crazy bills’,” said Fawaz. “And that’s not how we do business.”

“That being said, even if such a policy is not in written form, I would not be the least bit surprised that such was happening on a more de facto basis.”

He said it’s highly unlikely a lender would agree to contracting the deal even if the broker pushed for it.

“I doubt any companies would be brazen enough to have written policies about such selective enforcement, which

Section 8(a) of RESPA prohibits a person from giving or accepting any fee, kickback, or “thing of value” in exchange for a referral related to a real estate settlement service involving a federally related mortgage loan.

could be used as evidence of RESPA violations,” Brody said.

BACKROOM DEALS

If a lender agrees to negotiate its EPO policy with a broker, it is most likely going to happen without a contract as a kind of backroom deal. That’s not to keep jealousy from stirring between broker partners, though. According to James Brody, compliance expert and senior partner with Garris Horn LLC, lenders won’t put EPO policy negotiations in a contract because it could be seen as a RESPA violation.

“While there has been and always will be an element of special treatment for those companies who can generate a greater volume of good loans, I have only heard unconfirmed rumors with regard to such selective EPO enforcement,” Brody said.

Section 8(a) of RESPA prohibits a person from giving or accepting any fee, kickback, or “thing of value” in exchange for a referral related to a real estate settlement service involving a federally related mortgage loan. Under RESPA, a “thing of value” may include a payment, advance, loan, service, or other consideration.

“The thing of value (i.e., the agreement not to enforce EPO Penalties) would be given in exchange for the referral of loans to be closed,” Brody said.

Brokers may enter into backroom deals at their own risk, though, and Fowler believes a deal can be done in a way that protects the broker. He recommends ensuring such an agreement is in writing, preferably in a binding contract that lays out all the terms and conditions.

He also strongly recommends clarifying

> A screenshot (below) of an email sent from UWM Account Executive Bryan Miller to Loan Factory CEO Thuan Nguyen confirming the changes they made to their EPO policy specifically for Loan Factory.

when the agreement goes into effect and when it expires, otherwise a lender could easily retroactively charge the broker EPO Penalties.

“Just because I don’t enforce or push back that EPO today doesn’t mean I can’t push it back a year from now,” Fowler said.

That is how Loan Factory CEO Thuan Nguyen got into an altercation with United Wholesale Mortgage (UWM) in 2021. After receiving UWM’s ultimatum, stating brokers must either choose to work with Rocket Pro TPO and Fairway Independent Mortgage or UWM, but cannot continue doing business with both, Nguyen’s deal with UWM regarding EPO penalties was reneged upon, even though it was documented through an email exchange.

“They [United Wholesale Mortgage] assured me in writing there would be no EPO,” Nguyen said. “The promise was upheld for 1 year until the Ultimatum. Upon facing the Ultimatum, I realized that they are not a good partner for me. I chose Rocket. Consequently, they sent me an invoice totaling $594,175.50.”

Nguyen showed NMP a screenshot of an email sent from UWM Account Executive Bryan Miller confirming the changes they made to their EPO policy specifically for Loan Factory. The promise Nguyen refers to was that he would not have to return his commission if a borrower refinances early

with a different broker.

“Once they see that you are stepping away from them, they will go after you,” Nguyen said. “Even if I show them that I have their written email confirming the agreement that they won’t charge EPO, they still walk past their promise.”

“I tried to sue UWM but I did not,” because UWM dropped its claims, Nguyen said. “After I paid them about $70K, they said it is all settled and I don’t owe them anything.”

UWM did not respond to multiple requests for comment.

Fowler explained why some lenders may get away with charging EPO penalties retroactively, even when the broker received a written promise that they would not get charged.

“So, if I decide today not to push these back and you decide six months from now not to do business with me anymore, it doesn’t mean that I lost my time to push back,” Fowler said. “It can still be done.”

‘BROKERS NEED REPRESENTATION’

“Brokers need representation,” said Client Direct Mortgage CEO Ramon Walker, after UWM hit him with more than $124,000 in EPO penalties on 12 different transactions,

dating back to 2020. He was given seven days to pay the full sum.

UWM notified Walker of the EPO Penalties in a cease and desist letter sent in December 2023. Walker said this was the first time he’d been notified. In the letter, UWM also took issue with a Facebook group Walker created, UWM Vs. Rocket Pro TPO. Walker said the group allows brokers to freely debate the pros and cons of working with either lender. However, UWM attorneys accuse Walker of “improper use of UWM’s intellectual property” and allowing “defamatory statements” to be made by members in the group.

Walker said his working theory is that UWM knew about those EPOs for years and are only demanding payment now because he created the group.

individual that’s writing us the contract,” Walker said.

Fowler agreed, saying that brokers are too vulnerable to fight back. If any broker wants to challenge a lender’s demand for repayment or negotiate their contract in advance, hiring an attorney is possible, but not always feasible.

“Brokers don’t have attorneys on speed dial because they cost so much money,” Fowler said. “Even most independent mortgage bankers have weak attorneys for in-house counsel … ”

After receiving a demand notice, Fowler said attorneys for independent mortgage

“Unfortunately, there are many brokers that are doing business with other lenders, and they are in a bad position because they don’t know what’s gonna happen. They’re always on edge. And that is not a world that anybody should live in.”

“Their [UWM’s] gain on sale in 2020 was 300 basis points,” Walker said. “They made $1.5 million off of me that year. In their mind, they’re probably like, ‘Oh, don’t worry about these couple of EPOs. We’ll get him next year.’”

> Mike Fawaz, Executive Vice President, Rocket Pro TPO

UWM did not respond to multiple requests for comment.

Although Walker expressed that he isn’t afraid of a fight and would “love to get in discovery with UWM,” he believes the broader broker community is too vulnerable against lenders.

“We need an organization that actually protects us, and is not complicit with the

bankers only look to confirm that the banker did the loan and double check the amount the lender is asking for, but rarely do they dispute whether or not the originator should be charged.

“We’re stuck in a David versus Goliath kind of thing,” Fowler said.

“Unfortunately, there are many brokers that are doing business with other lenders, and they are in a bad position because they don’t know what’s gonna happen. They’re always on edge,” Fawaz said. “And that is not a world that anybody should live in.” n

PASADENA | NOV. 7, 2023

MORTGAGE ROUNDUP

HOUSTON | NOV. 14, 2023

UNCASVILLE, CT | JAN. 11, 2024

Events for mortgage brokers & originators

Connecting you to the story of your success.

Don't miss out! These recent events were huge successes — providing great educational and networking opportunities. Make plans to attend the next one nearest you!

We want every broker and originator to feel empowered, informed, and connected to the resources needed to develop your career. The Originator Connect Network, the nation's largest producer of mortgage events, is about fostering a community founded on professionalism, collaboration, and personal and professional growth.

To find the next event nearest you, visit:

NEW ENGLAND THE MORTGAGE

Closing On Camera

Docuseries follows LOs in tough market

BY ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Amoving montage, a catchy song, and an intense title sequence give the appearance of prime time television, but this reality show is definitely more relatable to mortgage mavens than teenage drama queens.

A touch of fate reconnected Emmy-award winning director and producer Kirby Bradley with his childhood classmate, Fairway Independent Mortgage CEO Steve Jacobson. What the two were able to create using their expertise along with that of videographer and editor Mike Hechanova is the only one of its kind, with the potential to change how the world looks at mortgage finance.

L.O. Confidential: A Season on the Street is a threepart series released to YouTube on Nov. 28, 2023. It follows three Fairway teams in Indiana, Arizona, and Texas as they navigate life and work during one of the toughest mortgage markets.

“I think that anyone watching this, even if they don’t care about mortgages, will really draw inspiration from how all these folks have figured out how to live their lives,” Bradley says. “You’re going to learn something about mortgages, which a lot of people don’t know … but all of us understand family.”

THE PREMISE

Bradley and Jacobson grew up together in smalltown Wisconsin. They reconnected a few years back when a mutual friend passed away.

“Randy Cross was pivotal in Fairway’s origin story in that he was the one who came up with the name Fairway,” Bradley says. “His death brought us back together in the sense that we just bonded sharing our feelings about Randy, then it gradually developed into a working relationship.”

With many years producing and directing television shows and documentaries for HBO, CNN, and ESPN, Bradley and his work have been recognized with 33 Emmy Awards, three Peabodys, and two duPonts. He did a few promotional videos for Fairway, then came on board full time in January 2021 to start a video production department at the company.

“I traveled all over the country, met a lot of loan originators, and was really impressed by how dedicated they were to their jobs. I thought it was great material and really outside of the box.”

So Bradley and Hechanova pitched the idea for the series to Jacobson, who helped them locate three Fairway branches that would be ideal for the job. “I wasn’t really sure they would be willing to do it,” Bradley says, “but

they showed a lot of faith and gave us the green light.”

AN INVESTMENT

Based in Madison, Wisconsin, Fairway is the #2 overall retail lender in the U.S., with more than 650 branches and $42 billion in loan volume in 2022.

Filming a docuseries mostly in-house was not a huge financial commitment, though it did take Bradley, Fairway’s chief content officer, and Hechanova about six months to do. Company officials did not disclose the project’s budget in interviews. The first episode had close to 4,000 views by Jan. 24.

“When Kirby Bradley pitched us the idea for L.O. Confidential, he stressed that, even though the project was large in scope, he would be able to tap into his decades of experience creating award-winning TV programming and would be able to keep the budget very manageable,” Jacobson says, adding, “We have been extremely happy with the impact the series has had across the industry.”

Discovering the series could motivate other mortgage companies to use this medium as a tool of engagement with potential clients and workers.

“If any other company is willing to invest in high quality video production like this, how far are they willing to go for their employees and customers?” says Fairway Sales Manager Austin Smith, whose team in Greenwood, Indiana was one of those featured. “I think that speaks to their character and vision.”

Company officials’ main goal for the project was to share Fairway’s mission and potentially recruit new LOs to its team. Sales Manager of Fairway’s Heritage Group in Garland, Texas Craig Brown put together an action plan to promote the series and let other mortgage companies and even real estate agents know it exists. As to how they are measuring its success, the best is yet to come.

“We’ll let you know in six months,” Brown says. “Obviously, you can measure based on views on YouTube, but there’s more to an impact than that. We have several different avenues and strategies that Fairway will be taking and our branch alone will be taking. As we get the word out through more of a strategic placement distribution, then I think we’ll see a lot more attractions start taking place. In terms of

> Kirby Bradley, Director, L.O. Confidential and Chief Content Officer, Fairway Mortgage

> Craig Brown, Branch Sales Manager, Fairway Mortgage

> Linda Davidson, Branch Manager and Senior Loan Officer, Fairway Area Leader

recruitment, it’s going to be hard to really track whether that is organic or through the video. We’re looking at the click through rate, conversion rate, form fields that they’re able to acquire from these videos.”

It was important for Fairway to showcase its nonprofit arms in the docuseries — the American Warrior Initiative, (AWI) and Fairway Cares. AWI helps wounded military heroes, providing service dogs, business grants, home upgrades, and mortgage-free housing.

“Steve, the CEO of our company, cares about the KPIs (Key Performance Indicators) but he cares more about the impact this is making,” Brown says. “We don’t necessarily want to raise this flag and say, hey, we’re the biggest, best mortgage company out there. Being the most philanthropic, that’s what we want to be known for.”

THE TEAMS

Brown’s mother Linda Davidson happens to be the Heritage Group’s senior LO and branch manager. While stronger than ever, family and

office harmony took time to bolster — a recurring theme in the show.

“If you had told me when he was 16 that we could even stay in the same room for more than an hour but most of all, work together, I would have said not just no, but heck no. We’re both very headstrong, opinionated, and stubborn,” says Davidson, who brought her son onto the team 12 years ago only to discover their strengths balance each other.

“He brings a technical, business development and marketing side, and I bring the mentorship of just loving to lead and help others grow,” Davidson says.

“Linda definitely brings the heart of the branch where I bring a lot of the head,” Brown adds.

The Martinez sisters — Ericka, Jessica, and Jazel — head up the 3M Group in Phoenix, AZ. The cameras follow them from the gym where they begin their day to the office, where they do their best to drive success while keeping their own family dynamics under control.

The sisters were flattered that Fairway’s corporate team chose their branch to feature in the docuseries, and it actually strengthened their individual relationships with each other.

“The reality is that we’re sisters but it’s not perfect — we fight like sisters,” Senior LO Ericka Martinez Hirons says. “Going through that process and seeing it from a different lens gave Jessica and I an understanding that the things we were upset about didn’t really matter. At the end of the day, the most important thing is family.”

Prior to the project even being announced, the pair had been seeing a therapist to work out their personal and professional grievances. Post filming, they have overcome those divisions.

The third branch featured is headed up by Smith, a husband and father of three.

“How often does somebody say hey, let’s film a documentary on you. Naturally I was curious,” Smith says. “I talked about it with my wife and our team and everybody was supportive.”

Filming and seeing the series back was “a humbling experience” for Smith, who has a son with autism. “As my wife and I watched it back it made us reevaluate some things in our life. I hope any LO that watches this realizes they also need an opportunity to reevaluate things for themselves. I hope it gives them a chance to

“We don’t necessarily want to raise this flag and say, hey, we’re the biggest, best mortgage company out there. Being the most philanthropic, that’s what we want to be known for.”

> Brown

look at things from a different microscope.”

GETTING PERSONAL

Having built a career in media that features professional athletes, Bradley (30 for 30, Real Sports with Bryant Gumbel) was not accustomed to these high-profile subjects getting personal on film. “They learn fairly quickly that there’s not really a huge advantage to opening up and letting people in because it turns into bad publicity a lot of the time,” he explains. “It was refreshing to be with the Martinez sisters and have them invite us into their home for their family dinners, being able to watch their kids play together and just being so open about the positives of their life, but also their struggles.”

Bradley echoed the same sentiment about filming in Texas and Indiana. “They didn’t have to open up to us, but they did. The way that most of these teams are structured kind of blends work and personal life together in a way that is really interesting. At Fairway, we place a lot of emphasis on the importance of creating the kind of environment where you can devote the time and effort you need to keep your family life in balance as well as your work life. I think that comes through in the stories.”

Smith hopes that mortgage professionals find the episodes relatable and informative.

“I think what this does is it shows that balance and rhythm in life is necessary. If you’re out of balance with your family and company then you won’t be able to navigate this difficult lending climate we’re in.”

Bradley and Hechanova worked in their usual style, shooting for a few days, choosing material for

the screen, writing scripts and then editing.

“It was just the two of us, which is a small team for a show like this, but we’ve worked together for years and really know how to work efficiently,” Bradley says. “So we were able to do it for very little money, which obviously was attractive to Fairway.”

FOR LOS

At the beginning of the first episode, participants reflect on the various paths their lives took which led them into the mortgage industry.

“No kid grows up wanting to be a mortgage loan officer,” says Smith, who originally went to the Air Force Academy but didn’t end up a fighter pilot like he once dreamt.

“When I was growing up I wanted to be an ER doctor,” Davidson says.

Whether or not they had loan stars in their younger eyes or not, viewers learn that these LOs are good at what they do and satisfied doing it.

“I get to help people with arguably the biggest financial decision of their lives,” Smith says.

“We get to help families have that white picket fence, and how cool is that, that a kid from the projects gets to do this every day,” Davidson adds.

Making a later appearance in the show is Jacobson, who Fairway LOs describe as “a loan officer at heart.”

“Life on commission — it’s a hard thing to describe,” Jacobson says. “You don’t really know what the next day is going to bring, so you have this mentality where you have to be a star today … ”

The series doesn’t fully explore the challenges

> Fairway Mortgage Sales Manager Austin Smith with his family at their home in Indiana during the filming of L.O. Confidential.

“Life on commission — it’s a hard thing to describe. You don’t really know what the next day is going to bring, so you have this mentality where you have to be a star today … ”

> Steve Jacobson, CEO, Fairway Independent Mortgage

of the 2023 market, but it does offer a sense of what several teams of successful LOs are doing to keep production up in these times.

“I think the biggest thing that it showed is the stress level that loan officers and branch managers and just anyone in the mortgage profession right now is going through,” Davidson says. “You want to make the wisest decisions as far as personnel, running a day-to-day business, and taking care of clients, even if you’ve had to lay off people. For many of our own officers, this was the first time they’ve been in a down market.”

Having the support of a strong team and company is more important than ever, her son agreed.

“I don’t think that they really wanted to go into the, ‘woe is me, let’s play this poor violin for the mortgage industry, because we had two years of unparalleled, historical success,” Brown says. “But it really was a tough year. I think any originator can just kind of connect, like we’re on the same page. The impetus for this was, ‘Hey, originators, we get you. We’re in this market with you. But this is how we’re responding. This is why Fairway is different.”

A PLUG FOR FAIRWAY

One sentiment that rang true for all the LOs involved in L.O. Confidential was their mutual appreciation for their parent company.

“I can’t imagine being in this industry at this time without Fairway,” Davidson says. “I would not want to be in any other company. That’s for dang sure. Fairway is not isolated from the storm. They have been very wise in making decisions to keep us steady until that storm turns. And so I do think that leaders in other companies

will certainly look at this and say, what can we pull from this? What can we look at to be better?”

Hirons has worked at different mortgage companies over her career and feels very supported in her current position.

“I’m proud to be under the umbrella of Fairway because from underwriting to branch support to just every single department, I’m very well supported. I think if an LO watches this, I hope they can truly see the value of working here and it has a positive effect on them.”

Smith notes that the series offers a behind-thescenes look at lending, which hasn’t necessarily been available to the general public before this.

“The perception of lending is one of two things — that you sit at a bank or you’re online, and that’s not the case,” Smith says. “I want to be able to go to the same grocery store as my clients and have them recognize me. I feel like this series attempts to build that bridge, and at the end of the day Fairway gives us a fantastic opportunity to give the best to our clients.”

Brown laughs about the fact that he participated in a reality show, and its contrast to the angst-filled nailbiters out there in the world of television.

“There isn’t the drama that you would see in a normal reality series. But hey, here’s a peek under the hood of what we go through on a daily basis and how we help each other through struggles. The strength, the support, the backbone of Fairway and what it provides for us.”

The question everybody is asking: will there be a part two?

“I hope so,” Bradley says. “We’re discussing it. No decisions have been made, but the reception so far has been very positive and there has been some talk about doing this again. We’ll keep our fingers crossed.” n

Attorney Opinions

Don’t Count

Title waiver pilot, unregulated title alternatives a risky game for lenders and taxpayers

BY DEBORAH BAILEY, SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

The federal government continues to push proposals that would dangerously expose lenders and taxpayers to additional risk.

In March, the Biden Administration released plans during the State of the Union to revive a previously discredited and shelved pilot program that would waive the requirement for lender’s title insurance on certain refinances. Additionally, unregulated products such as attorney opinion letters (AOLs) have been promoted in the marketplace, branded as “full coverage” alternatives to title insurance. Fannie Mae recently expanded guidance to permit the use of AOLs for additional types of transactions.

Deborah Bailey

It is critical that lenders and consumers understand the significant risks of the title waiver pilot on refinances and unregulated alternative title insurance products.

Under the pilot, lenders will pay Fannie Mae a fee to cover the risk if there is an unexpected title defect. Basically, Fannie Mae will become a primary market insurer, expanding beyond its mission and charter. The last time Fannie Mae engaged in significant risk taking, it, along with Freddie Mac, imploded the American economy in 2008 to the tune of $200 plus billion in taxpayer dollars. We can’t allow this pattern to repeat itself.

The title industry isn’t alone in voicing concern about the pilot. Ed DeMarco, who was acting director

of the Federal Housing Finance Agency (FHFA) during the Obama Administration and now heads the Housing Policy Council trade group, in a letter to the FHFA implored the agency to “approach this issue with caution and a sensitivity to the role title insurers and title insurance plays in lowering risk for lenders and consumers alike.” U.S.

Reps. Andrew Garbarino, Bill Huizenga, and Warren Davidson wrote in a letter to the FHFA that a change like this

“requires rigorous scrutiny.” Additionally, 18 House Democrats recently signed a letter to President Biden stating, “ … allowing the GSEs to assume unnecessary risk outside their core mission, possibly violating their charters, is not the path we should take.”

TITLE INSURANCE IS NECESSARY FOR REFINANCE TRANSACTIONS

On a refinance, lenders require title insurance to ensure the new loan is protected. If not done correctly, a lender could risk not having lien priority. Risk of fraud is another reason why lenders need title insurance on a refinance. After a couple purchased a home, the husband attempts to refinance and take his wife off the title and mortgage ahead of a pending divorce. The lender would be protected from any claims made by the wife down the road. Additional examples of title claims on lender’s policies include the failure of a prior lender to properly close a HELOC after settlement, boundary line disputes, and invalid mortgages because documents were executed with an improper power of attorney.

The title industry has a lower claims rate than other lines of insurance because of the curative work title professionals perform. Preventing claims is the title industry’s goal. It’s why 70 cents of every dollar in premium the industry collects are spent acquiring and analyzing public real estate records data. Further, while rates for other forms of insurance have increased in recent years, the cost of title insurance coverage has decreased 7.8% since 2004, based on

recent industry financial statements.

Title insurance is a well-known, established step in the homebuying process and is regulated by state insurance and consumer protection regulators. AOLs don’t have similar oversight. Title insurance companies must maintain financial reserves to cover future claims risks. AOL providers do not. Additionally, AOLs typically do not provide an unlimited duty to defend the policyholder in the event of a claim, leaving homeowners open to future financial burden.

Despite being promoted as a cost-savings over title insurance, AOLs can be more expensive for homebuyers, while at the same time exposing them to more risk. In most states, the seller pays for the homebuyer’s title insurance policy. This means homebuyers only pay a reduced fee for the lender’s policy at closing. This often can cost the homebuyer as little as $150. When combined with other discounts, title insurance is not only less expensive, but more protective, than AOLs.

Despite being promoted as a cost-savings over title insurance, alternatives can be more expensive for homebuyers, while at the same time exposing them to more risk.

POLICYMAKERS HAVE CONCERNS ABOUT THE TITLE WAIVER PILOT AND AOLS

When the FHFA considered this pilot concept last year, several members of Congress from both sides of the aisle asked FHFA Director Sandra Thompson about it during a House Financial Services Committee hearing. The legislators expressed concerns that Fannie Mae would be expanding outside their charter by operating in a primary market business with this pilot program. Additionally, U.S. Reps. Young Kim (RCA) and Brad Sherman (D-CA) sent a letter on Feb. 27 to the FHFA sharing concerns over the promotion of unregulated AOLs in place of title insurance. These risks are why Reps. Andrew Garbarino (R-NY) and

Vicente Gonzalez (D-TX) have introduced the bipartisan Protecting America’s Property Rights Act to require title insurance from a state-licensed title insurance company on all loans purchased by Fannie Mae and Freddie Mac. Garbarino called the Administration’s pilot proposal “a misguided reversal of a decision made by FHFA and Fannie Mae last year after bipartisan disapproval.” Without understanding the full extent of risks that are associated with the title waiver pilot and AOLs, lenders may find their lien priority in jeopardy while consumers may face increased threats to their ownership rights. When it comes to one of life’s greatest investments, lenders and consumers should protect that investment the absolute best way they can — with the proven security of title insurance. n

Deborah Bailey Esq. is the Founder and Managing Member of Bailey Helms Legal LLC, a boutique transactional real property law firm in Roswell, GA. Bailey also serves as a member of the American Land Title Association’s Board of Governors and co-chair of the Southeast Land Title Association’s Georgia Governmental Affairs Committee.

Brokers & Beignets

Build your business in the Big Easy

Picture this: You arrive at the historic French Quarter of New Orleans, the scent of beignets and freshly brewed coffee mingles with the soulful melodies of jazz drifting from nearby clubs. Your excitement grows as you approach your destination, the iconic Hotel Monteleone.

Nestled in the heart of the French Quarter, the Hotel Monteleone stands as a timeless symbol of elegance and Southern hospitality. Its grand facade, adorned with wrought-iron balconies and lush greenery, exudes old-world charm and allure. As you pull up to the entrance, you are greeted by the sight

of uniformed bellmen bustling about, ready to assist with luggage and offer warm smiles of welcome.

Stepping into the lobby, you’re enveloped in a sense of luxury and history. The opulent decor, with its marble floors, crystal chandeliers, and rich mahogany furnishings, harkens back to a bygone era of glamour and sophistication. Yet, amidst the grandeur, there is an unmistakable sense of warmth and intimacy, as if each guest is being welcomed into the embrace of a dear friend.

As you ascend the grand staircase, you are struck by the buzz of energy that permeates the air. The

sound of lively conversation and the clinking of glasses fills the hallway, mingling with the faint strains of jazz music drifting up from the lobby below. Arriving at the conference area, you are greeted by the sight of attendees from all corners of the mortgage industry, engaged in animated discussions and networking opportunities.

The expo hall itself is a bustling hive of activity, with rows of booths showcasing the latest innovations and services in the mortgage industry. From technology solutions to compliance resources, the array of offerings is vast and impressive. The traveler eagerly immerses themselves in the exhibits, eager to glean insights and make valuable connections with fellow professionals.

Throughout the day, you attend informative workshops and panel discussions, gaining valuable knowledge and industry insights from leading experts in the field. You take diligent notes, exchanging ideas with colleagues and forging new connections that will prove invaluable in your professional endeavors.

As the day draws to a close, you reflect on the wealth of information you have acquired and the connections you have made. With a sense of fulfillment and anticipation for the days ahead, you make your way back to your room at the Hotel Monteleone, grateful for the opportunity to participate in such a dynamic and enriching event in the vibrant city of New Orleans.

The Ultimate Mortgage Expo is a two-day event for the Gulf Coast Region’s mortgage professionals. Since 2013, the Ultimate Mortgage Expo has been providing unique opportunities for brokers, originators, and support staff to build their businesses. This year, we’ve expanded the event, with even more sessions on Wednesday, July 10, plus another incredible networking party. The cherry on top is that all of this is free for attendees, thanks to supporters of the show, who you can meet in the exhibit hall on both Wednesday and Thursday. Just use our code OCNFREE on your registration.

Cheese Wheel Of (Mis)Fortune

A brush with Brie led Trip Topken III to a new career in his golden years

Wheel (Mis)Fortune

BY ERICA DRZEWIECKI, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Anear-fatal encounter with a discounted wheel of brie cheese was the catalyst to Peter William “Trip” Topken III becoming a mortgage loan originator.

The 60-year-old Cincinnati native’s journey actually began when he caught the real estate investment bug around 1998. After leaving a job in broadcast television it would be more than a quarter-century before he was officially hired by NEXA Mortgage. The timeline between brought the Great Recession, grandchildren, and several health events that put his path on a new course.

Wise enough (or lucky, as he puts it) to have sold his investment properties by 2008, Topken dabbled in entrepreneurship for a few years. He passed the Series 7 General Securities Representative Exam in 2021 in preparation to become a financial advisor and was studying for the NASAA Series 66 Exam when he ended up in the hospital.

Topken’s immune system is compromised by what he calls “a run-in” with Hodgkin’s Lymphoma in 2003, (five-and-a-half months of chemotherapy and a month-and-a-half of radiation). It was the weekend of July 4, 2021 and Topken and his wife Maria were having their family over for a gathering. “I went to the grocery store to pick up some supplies and on the clearance table, they had a nice chunk of brie. And I thought, well, gee, this would be just fine,” he recalls.

The following Tuesday Topken wasn’t feeling well and when he looked in the mirror, the right side of his face wasn’t moving. Doctors suspected Bell’s Palsy and put him on steroids, but three days later he started feeling worse and passed out at home.

“The next thing I know, I wake up and I can remember asking, what happened? I thought I was in a car wreck.” He was diagnosed with Listeria Encephalitis, put on a ventilator for nine days and pumped full of antibiotics. When Topken was released from the hospital his daughter came to care for him while Maria went back to work. Financial planning doesn’t typically come with health insurance so he had to rethink his next career move.

“I thought, well, good grief. This could be a

problem if I decide to do something really stupid like eat some more soft cheese in the future,” Topken says. “So I better figure out how to do something that I enjoy that’s going to provide some benefits.”

Then he came across an advertisement for NEXA Mortgage, did some background research on being a loan officer, found out he could earn benefits, and

Mitchell onboarded Topken into the NEXA Academy and connected him with the tools and training.

Topken was one of 22 new LOs in Mitchell’s class at the NEXA Academy, which at the end of February had about 300 LOs total learning the tricks of the trade.

“They have a certain criteria that they have to meet before they graduate and we let them out to the wolves,” the instructor explains. “It’s a six loan commitment. But they can stay until they feel comfortable,” adds Mitchell, who has high hopes for the student. “He’s been working very hard, doing a lot of marketing, cold calling, meeting with different prospects. He’s doing everything that he needs to do in order to create that business. So he will be successful. I have no doubt about it.”

“The nice thing is real estate investors — they’re the one group of people that buy houses whether rates are at zero or if they’re at 20%. It doesn’t matter. They’re looking at the return on the investment. How do I get the money to come back to me after I put the money out? And the rate part is built into that equation for them”

> Trip Topken

reached out to the company. LO Tammy Richardson. answered the phone. “She said, ‘Well, you have to be licensed to work for us,’ so I changed gears and started studying for mortgage originating,” Topken recalls.

The neurological problems Listeria created made it difficult for him to focus on his studies and it would be almost a year before he was ready for his licensing exam. He took it (and passed it) on September 5, 2023 and was hired by NEXA almost immediately.

“We emailed back and forth and I helped encourage him,” Richardson says. “I was so excited.”

She and NEXA Branch Manager and Senior LO Eric

QUESTIONABLE

Understanding different loan products and being cognizant of clients’ needs are both top priorities for new LOs. “If they don’t know it, they try to learn. And Trip is that person. He asks the questions. He’s very knowledgeable. He understands the process. He definitely has the personality. And he’s a go -getter.”

Once he joined NEXA Topken was anxious to do every kind of loan product out there, but his instructors encouraged him to find a specialty. “When I first started, I tried to be all things for all people. I was like, why would I want to try to find a niche and limit myself when I can do everything for everybody? I soon found out you can’t do it all in this business because you’ll work 24 hours a day and never be able to catch up. I was lucky that I realized that early on because otherwise I would have been floundering around.”

Then looking back along the chain of events in his own professional career, he found his vocation.

“The week I started with NEXA was the week of the National Real Estate Investors Association

“I was like, why would I want to try to find a niche and limit myself when I can do everything for everybody? I soon found out you can’t do it all in this business because you’ll work 24 hours a day and never be able to catch up.”

> Trip Topken

Conference, which happens here in Cincinnati. I went to the conference and met several people interested in doing loans. I’ve been a real estate investor in the past, I know the general vibe of the investor culture.”

So investors it became.

“I’m actually working with one right now who has several properties that she’s looking to refinance.

meeting in Cincinnati, and has lots of cheerleaders.

“I look back at it and both instances were very intense, but I think the Hodgkin’s prepared us for the listeria,” Maria says. “I needed to be Trip’s advocate and his voice and it truly had to be a one-team mentality to get through it.”

Their family values lifelong learning, so Topken starting a new career in his golden years is exciting for this pair.

“I thought, well, good grief. This could be a problem if I decide to do something really stupid like eat some more soft cheese in the future.”

> Topken

She just got divorced and is looking to withdraw some cash for some needs. I think these will be the first ones that I end up actually closing, depending on whether or not I find the right product for her. But I’m relatively certain that NEXA, being that it has a relationship with over 230 different lenders, will have something that she’ll be okay with.”

Wooing potential clients and referral partners is the game every LO plays.

“We try to keep in touch with Trip and make sure he’s heading in the right direction,” Richardson says. “It seems like he’s the type of guy that will go far in this industry. He’s got that personality where he wants to absorb as much information as he can and is always so pleasant and positive.”

Topken goes to a weekly real estate investors

“I think it’s fabulous,” Maria says. “Let all of us take that attitude. There’s always more to learn if you see an interest.”

She works for an advertising agency and is accustomed to taking calls off the clock, and they both are prepared for the 24/7 availability needs of a successful LO.

His realtor-

sister from Atlanta and a realtor-friend in Cincinnati on the other hand, both had cautionary words for Topken.

“They were like, why are you getting in this industry now? This is the worst time possible. And I was like, ‘yeah, I know, but I’ll be able to figure out how to do things correctly. And when things start to turn around, I’ll be ready to go.’ The nice thing is real estate investors — they’re the one group of people that buy houses whether rates are at zero or if they’re at 20%. It doesn’t matter. They’re looking at the return on the investment. How do I get the money to come back to me after I put the money out? And the rate part is built into that equation for them.”

When he first left the hospital, doctors said it could take up to two years for Topken to get full movement back in his facial muscles, if ever. Two

years was last summer. But this May he’s heading to the University of North Carolina Facial Nerve Institute, which treats more than 15 different types of facial paralysis.

“I’m still recovering the movement in my face, which I honestly worried a little about, being that I’m in sales,” Topken says, “but people are very nice. Cincinnati is a bigger city with a smaller town feel to it. In some places you’d probably get looked at weirdly walking around with this affliction. I try not to scare people.”

If seventy- and eighty-year-old men are vying for the top seat in the White House, Topken says, he can be an MLO.

“The one that emerges from the upcoming election, be it Biden or Trump, they’re senior citizens

and they’re working. And that job is 24 hours a day, seven days a week. So that’s kind of an inspiration … I figure, hey, why not be a mortgage loan originator for a decade or so?”

Topken also hopes he can serve as an inspiration for others, be it LOs or people overcoming adversity like he has.

“It’s going to take a while to learn a few things, but eventually the light bulbs all go on and you’ll see what you need to see; what you need to know will become apparent. Especially if you’re young and coming out of college, wow, you’ve got a whole life in front of you. This type of job can provide tremendous financial security. You’ll eventually get the hang of what you need to do and be able to do your job efficiently and effectively.” n

This is the first in a series of Mortgage Origin stories. To submit yours for consideration by our editorial staff, email erica@ambizmedia.com

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Empowering Women In Mortgage

Welcome to

the

Mortgage Women Leadership Council

A warm welcome to you! I’m Kelly Hendricks, the Managing Editor of Mortgage Women Magazine and Senior Vice President of Delmar Mortgage, and it brings me great joy to extend this invitation to you. Throughout my career in the mortgage industry, I’ve been fortunate to have leaders and mentors who played pivotal roles in shaping my journey. I am thrilled to introduce a transformative initiative – the Mortgage Women Leadership Council, created by Mortgage Women Magazine.

In my role, I’ve experienced the challenges that women face in leadership within the mortgage sector. These challenges led to a profound realization — the need for a dynamic network to empower women in our industry. This realization is the driving force behind the creation of the Mortgage Women Leadership Council. I believe in the power of collective support, and I am excited about the opportunity to share and benefit from each other’s experiences.

Our mission is clear: to promote and empower women’s leadership in the mortgage sector. The council aims to create a supportive environment for professional growth, mentorship, and networking. Joining the

Our

council comes with various benefits, including networking opportunities and access to industry-specific professional development resources. We understand the unique challenges women face in mortgage leadership and have tailored mentorship and support systems to address them.

I invite you to join this movement to empower women in the mortgage industry. The Mortgage Women Leadership Council is committed to fostering a welcoming and supportive environment. Your involvement will not only contribute to your personal and professional growth but also play a crucial role in advancing women’s leadership in our industry. To join or get involved, simply click here to apply.

Thank you for considering this invitation to join the Mortgage Women Leadership Council. For further inquiries about the council and details on how to join, please contact Beverly Bolnick at bbolnick@ambizmedia.com. Let’s work together to advance women’s leadership in the mortgage industry — because collective action brings about meaningful change.

Kelly Hendricks Managing Editor, Mortgage Women Magazine

Our voices

As a valued member, enjoy these benefits:

Access to a Powerful Platform: Amplify your voice and influence through Mortgage Women Magazine, exclusive sponsored programs, email newsletters, and impactful events.

Editorial Opportunities: Showcase your expertise and insights through editorial features in Mortgage Women Magazine, gaining visibility and recognition among industry peers.

Awards and Recognition: Receive well-deserved recognition through our award programs, celebrating your achievements and contributions to the mortgage industry.

Community Support: Become part of a dedicated community committed to celebrating and driving meaningful progress in the mortgage sector. Connect with likeminded women leaders, share experiences, and foster collaborative initiatives.

Mortgage Women Magazine: Enjoy your complimentary digital subscription to Mortgage Women Magazine, the premier publication for women in mortgage. Read advice, learn about industry updates, and take in the inspiring stories of your peers.

Become a member today.

Join us and be a driving force in creating a more inclusive and thriving mortgage industry. Together, as a united community, we believe we can make real change.

Enjoy 1 year of your individual membership free! Use code MWM2024

mwlcouncil.com

Living & Lending, By The Numbers

How Kevin DeLory learned to lead

BY KATIE JENSEN, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Kevin DeLory is no stranger to a crisis. He has been dealt more than his fair share of blows, including a rough childhood, multiple family tragedies, a global financial crisis, a cancer diagnosis, and now he contends with his second cancer diagnosis after doctors informed him his old foe has returned. Cancer is stubborn but, seemingly, not as stubborn as DeLory, partner and chief TPO lending officer at Equity Prime Mortgage (EPM), who refuses to relinquish his leadership responsibilities.

Prior to DeLory’s diagnoses, he was put in charge of leading the wholesale team at EPM, after the company spent years building up that division and reducing its retail division. Once the company’s Chief Retail Officer Stephen Carpitella said he’d be leaving to start his own brokerage, CEO and founder Eddy Perez saw the writing on the wall, and made the drastic decision of completely dedicating the company to wholesale, which he said would help them earn the business of more broker partners. No

one could have been better suited to lead the TPO channel than DeLory, Perez said.

After 20 years of steadily rising through the ranks of the wholesale channel, going from originator to sales manager to account executive to leading entire wholesale divisions for the largest lenders in the nation, DeLory has learned plenty of lessons about leadership. But, little did he know, he was about to learn so much more as he navigated the biggest obstacle of all, a cancer diagnosis that threatened to destroy all he had built in his life, including his family and career.

Many people in his life took it as a sign that he should take a step back from his career and rest, but that’s not what DeLory does. After going through chemotherapy, he said what friends, family, and colleagues struggled to understand is that work is his energy source.

“This is what heals me, being around these people, being in the trenches, all day,” DeLory said.

For some reason, despite how many beatings he takes, DeLory keeps getting back on his feet. Like Rocky Balboa in the ring, DeLory says “I didn’t hear

no bell. One more round!”

His intentions were made clear the day his wife took him to a nearby hospital for an emergency operation.

“My wife was upset and she was crying,” DeLory said. “So, I asked her for one favor. I said, ‘I need you to be strong in this because your strength is gonna help me. Because if I see you upset, then I’m gonna get upset. And we can’t afford to be upset right now. We need to win.’ ”

MORE THAN A NUMBERS GAME

“Ididn’t ask to be a leader,” said DeLory, while reminiscing the days he was the number one salesperson at his first company. “I used to say, ‘I can make more money by hitting 40 home runs and stealing 40 bases than I could by coaching a team.’ ”

In the first few years of DeLory’s career, he came out swinging with all the exuberance and determination of a young man looking to carve out his place in the industry.

with the words ‘top producer’ or “President’s Club” engraved on the plaque,” he said.

But DeLory’s satisfaction didn’t come from awards, necessarily, because he had longed to be number one at something ever since his childhood.

DeLory was the youngest of four boys, raised on welfare by a single mother who “wasn’t the most caring person in the world,” he said, but his brothers were there for him. “They always took care of me,” DeLory said. “They taught me how to fight, and drove me to want to be number one. Because that was our only way out, you know, was to fight.”

But, in 2007, the new life DeLory was building for himself started to crumble faster than he could pick up the pieces. Another value was entered into the numbers game: the

“This is what heals me, being around these people, being in the trenches all day.”

> Kevin DeLory, partner and chief TPO lending officer, Equity Prime Mortgage (EPM)

Starting out as an area sales manager for New Century Mortgage in 2001, he was the top producing account executive every month he was employed, with the exception of one, and added $50 million in production to the branch. In 2005, he continued his hot streak at Equifirst, owned by Barclay, where he was named “Account Executive of the Month” for 30 consecutive months and “Account Executive of the Region” in 2006 and 2007.

In those days numbers were all that mattered; volume numbers, unit numbers, phone numbers, loan numbers swirled around in his head. Because that’s what being a loan originator is all about, DeLory said. Some love the recognition, “like receiving those glass awards

number of people left in his support system. The mortgage crisis began to gather steam in mid-2007, causing Equifirst to cut more than 400 jobs. So many had left, DeLory recalled, including friends who went to join the insurance or title side of business. That caused other important numbers to drop like loan volume and phone rings per day.

“You have to have a really strong stomach to stick it out,” DeLory said.

But, that’s not all who left. Around that same time, two of DeLory’s older brothers died tragically from separate incidents. When DeLory lifted his head from the cloud of grief he’d been

under, he counted a final tally of five.

Five brokers, who had become some of his closest friends over the years, were standing in his office one day in 2008. He had seen them at dinner parties, family outings, and his own wedding, but never had he seen them this distraught. Just as the industry began to collapse with lenders shutting down left and right, his friends looked to him and asked, “What do we do now?”

At first, DeLory was confused why they were asking him that question, as if account executives have a handbook on what to do when the entire housing market crashes. “And that’s when it occurred to me,” DeLory said. “Oh my God, they see me as a leader.”

It was at that moment DeLory’s entire career had shifted. His money was gone; his brothers were gone; and the numbers that constantly ran through his mind were replaced by the faces staring back at him in his office.

“Then I realized I can be a much better leader than I am a salesperson,” DeLory said. “I can help these brokers that are dying on the vine because they thought subprime was the only product to offer. I can go out there and educate them about FHA ,VA, and USDA to keep their doors open.”

By the second half of 2008, one of the largest subprime lenders, Equifirst, converted to making loans conforming to Federal Housing Administration (FHA) standards, closing more than 1,700 loans during the period. DeLory built his team up from two to eight account executives, and said they became the top producing team in the company every month until the company eventually closed in 2009.

CHIEF WRESTLER OF EGOS

“In sales, everyone wants to be number one,” DeLory said, acknowledging how that can drive success for many leaders. But there are

times when personal ego can hold leaders back from recognizing new opportunities and making necessary changes.

In September 2023, EPM’s Chief Retail Officer Stephen Carpitella came to CEO Eddy Perez and told him he wanted to leave to start his own brokerage. A more egotistical CEO might have kicked the executive out of his office, Perez said, or out of the building with security escorting him to the door, making it an entire spectacle out of spite or amusement. But Perez makes an effort not to be that kind of boss. Instead, he recognized the opportunity to support a growing segment of the industry and decided to support Carpitella’s new venture by shedding its retail division and going all-in on wholesale.

“Most of the time, the hard thing to do is the right thing to do,” Perez said. “Sure, other CEOs with bigger egos would have yelled or maybe even sued, which is something I’ve seen happen, but he [Carpitella] was with me for 13 years and I wasn’t going to do that. Wholesale is doing much better for us and he recognized that.”

EPM’s commitment to all-in on wholesale was a major risk, DeLory said, and many people questioned their timing since retention was already low and the market was less than fruitful. But DeLory said the goal is to show brokers that EPM is not out to compete with them, but provide them with the resources they need to win.

“He [Perez] sat here and said, ‘Hey, I say brokers are best … but I can’t have a retail division. I gotta put my ego aside.’

That wasn’t an easy decision,” DeLory said.

Perez said his title is not only CEO, but “Chief Wrestler of Egos” and it would therefore be contradictory to let his ego get in the way of any decision that’s “better for the greater good; EPM.”

When it comes to taming executives and other staff in the company, Perez has the ultimate ego-killing exercise in which he

“It’s hard to put into words how remarkable DeLory has been.”

> Eddy Perez, co-founder and CEO, EPM

> Support System: DeLory’s partners at Equity Prime Mortgage, Eddy Perez and Kenny Phillips, Senior Vice President of Wholesale Lending, EPM, demonstrated their strong support by arranging a plane to bring him home for surgery, showing the importance of camaraderie and support among leaders.

“We can all have what we want. But I just think if it can’t be about what’s best for you, it’s gotta be what’s best for the community. We can’t be so competitive.”

> DeLory

tells everyone to literally pick up their hands and hang up their ego like they’re hanging up a jacket.

“My ability as a leader is dependent on how my people learn and grow and if that’s into their own entrepreneurial spirit then I must support them,” Perez added. ‘“I know it’s easier said than done, but you have to take the emotions out of it, and each person needs to focus on how they are going to be 1% better every day.”

After adding industry veterans to the sales team and announcing that EPM would be exclusively wholesale, DeLory said that the broker community welcomed them with open arms and expects EPM to emerge as one of the top five wholesalers within the next year. According to Modex, EPM has been able to complete 72 transactions and $22.52 million in volume since the start of 2024.

DeLory’s and Perez’s leadership philosophies are very much aligned, Perez said, adding that “It’s hard to put into words how remarkable he [DeLory] has been.” Not only was Perez amazed by DeLory’s positive attitude after initially being diagnosed with cancer, but he was even more impressed seeing DeLory’s still upbeat attitude after the second diagnosis when tests revealed the cancer was not gone. “That blew me away,” Perez said. “He’s truly remarkable.”

DeLory shares the same appreciation

for his partners, saying Perez and Kenny “Phil” Phillips, Senior Vice President of Wholesale Lending, EPM, are like brothers to him. He recalled sitting in the hospital for his first operation, unsettled by the fact he would be having it so far from his family and friends at home.

“I didn’t wanna have the operation, you know, away from my wife and daughter,” DeLory said. “Eddie and Phil, my two partners who I consider like brothers, sent a plane and got me back home. So my wife picked me up and took me right to the hospital here.”

As much as company leaders and entrepreneurs love to take pride in their own grit and determination, DeLory reminds us that leaders need friends, and ego can stand in the way of that support.

SHOWING VULNERABILITY

“You wanna talk about vulnerability?” DeLory said. “Like showing up to an executive call hooked up to an IV as you’re getting chemo … and you pride yourself on this beautiful hair you used to have, but now you’re totally bald and your head looks like Charlie Brown because you’re on so many steroids.”

Sometimes, showing vulnerability isn’t a choice, as DeLory knows; sometimes, it’s an inevitability.

Even before his diagnosis, DeLory was open to showing his flaws or mistakes to his team members because he believes it’s a learning tool for them. DeLory has the smallest office at EPM and more often sits in a cubicle alongside his team of account executives, taking phone calls on the main floor and allowing them to witness every achievement and mistake he makes.

“Kevin leads from the front,” said EPM Senior Vice President of Lending Kenny Phillips. “He is never afraid to jump in the trenches with us and never makes us feel like he is not going through what we are going through together. It’s always a get-it-done attitude with full knowing that he will be there with us every step of the way to guide.”

A lot of people think a leader has to be shiny, like a knight in shining armor with an impenetrable shield against failure, but that’s not the truth, DeLory insisted. Because that intimidation gives rise to suspicion, he said, and soon they’ll begin asking themselves “What’s he hiding?”

Some leaders may equate vulnerability with weakness, but his colleagues say that if anyone can demonstrate how one can be vulnerable and strong at the same time, it’s DeLory.

“Kevin is steadfast in how he gets his work done,” said EPM East Coast Regional Sales Manager, Keith Russel. “When he went through his recent journey, he only wondered the next day if he would be in the office, and that was always his first priority. It’s admirable.”

Though many of DeLory’s colleagues admire his work ethic, they also show genuine concern — as friends sometimes do — and make sure he’s not overworking himself when his health is the main priority.

“I’m sure there’ll be a fight when I get outta the hospital on Saturday [after the operation] since I want to come back to the office on Monday,” DeLory said. “A couple

> From left to right, DeLory stands beside his best friend of 20+ years, EPM’s Senior Vice President of Wholesale Lending, Kenny Phillips, along with his partners, CEO Eddy Perez and COO Jason Callan, who he considers like brothers.

“Kevin leads from the front. He is never afraid to jump in the trenches with us and never makes us feel like he is not going through what we are going through together.”

> Kenny Phillips, Senior Vice President of Lending, EPM

people have yelled at me that maybe you should work a couple days from home, but this is my healthy space. This is what makes me happy.”

He acknowledges that it’s hard for others to understand why he continues grinding away at work. Some may think he plugs into work to avoid thinking about his cancer, but DeLory said work gets him thinking positively and improves his health.

At first, DeLory admits he was reluctant to do research on his particular cancer after initially getting diagnosed. Luckily, he had the help of his coach, Jenna Silverman, COO of Culture Matters, a coaching and training company that works with companies on establishing core values.

“I didn’t want to do any research … but Jenna did everything for me and gave me the courage I needed to face this,” DeLory said. “I needed all these people. They think I’m the leader? They were leading me. I needed their support. I needed my friends.”

COOPERATION & COMPROMISE

Despite how well DeLory’s leadership style has worked, he acknowledges that it’s not often reflected in the broker community. Compromise and cooperation are not words that many in the broker community like to use. They prefer words like “competition,” “choice,” “options,” “freedom,” and above all, “independence,” said Joey Harrington, CTO and partner at one of the top brokerages in

Arizona, Agave Home Loans.

“They can spend a lot of their energy on who’s right, who’s the best partner, and some of the drama that comes with that,” Harrington said. “Competition drives a lot of growth and can get people out of their comfort zone, but taken to the extreme can definitely produce negative outcomes and environments.”

The amount of internal fighting in the broker community is no secret to the rest of the industry either. Even those who work in separate channels can see the drama that transpires within the broker community, like New American Funding co-founder and CEO Patty Arvielo, who said in a separate interview, “I think that it really goes on in the broker channel … they talk negatively about each other. The negative rhetoric around, you know, the UWM and the Rocket thing — I was just so glad to not be a part of that.”

DeLory, after decades of working in the wholesale channel, loves that the broker community is fiercely independent and competitive, but is also concerned how that can stunt progress during times the community must band together. Inflated egos not only denigrate company leadership, but also stand in the way of the channel’s progress, DeLory said.

Since DeLory worked in the mortgage industry at the time of the 2007 housing crash, he was a first-hand witness to brokers’ tragic downfall. The evidence is

> DeLory, his wife, Dana, and their A-list athlete daughter, Brooklyn, who seems to have inherited her father’s competitive nature.

well documented by housing economists at that time, like Archana Pradhan, principal economist at CoreLogic, who reported the drop in loan-quality reputation among brokers as foreclosure rates jumped, leading lenders to stop offering credit through brokers. Then, of course, the resulting decline in broker market share after 2008.

DeLory believes the reason brokers received much of the blame and endured a severe compliance crackdown was because they did not unite in defending themselves.

“After 2007, the Realtors’ commissions didn’t get cut. Whose commission got cut? The brokers,” DeLory said. “Why? Because there are all these different factions [in the broker community] rather than being unified. The Realtors have one body representing

them on Capitol Hill and fighting for them.”

But, now, he sees broker market share has rebounded to 24.3%, the highest it’s been since 2009, according to data from Inside Mortgage Finance. New broker advocacy groups are forming, and trade associations including NAMB, the MBA, AIME, and its partnering advocacy group the Broker Action Coalition (BAC), have established mortgage brokers’ presence on Capitol Hill, increasing the community’s opportunity to advance reform efforts on trigger leads, compensation rules, and credit report fees. It’s the dawn of a new era, potentially.

“We can all have what we want,” DeLory said. “But I just think if it can’t be about what’s best for you, it’s gotta be what’s best for the community. We can’t be so competitive … I think even some of these organizations selfishly want to put the organization ahead of the community, the people they represent, and I think that’s the big fail.”

In the words of DeLory, ego is a crazy thing. When it’s healthy, it can effectively boost one’s self-esteem, but too much of it can blind people to the point where they can’t recognize an opportunity that’s right in front of them.

“If we spend more time talking about how we can make brokers great versus bickering, brokers would be unstoppable,” he said. n

2024 PRISM AWARDS

Most LGBTQ+ people are either in or entering their prime homebuying years, and LGBTQ+ households have a cumulative spending power of nearly $1.4 trillion, on par with that of Latino, Black, and Asian households, according to a November 2023 report by the Urban Institute, a nonprofit research organization that provides data and evidence to help advance upward mobility and equity.

The homeownership rate among lesbian, gay, bisexual, transgender, and queer (LGBTQ+) people is 20% lower than the rate for people who identify as straight and cisgender, according to the report. The LGBTQ+ community is one of the youngest and fastest-growing populations in the United States, and their access to homeownership is critical to a stable and thriving U.S. housing market.

The fact that the LGBTQ+ community is underserved is why National

PRISM Honorees Doing Their Part For LGTBQ+ Inclusion

Lenders see the value of embracing the needs of clients and colleagues

Mortgage Professional Magazine is honoring three mortgage lenders for their commitment to diversity and inclusion in an industry where 8% of brokers are LGTBQ, according to a September 2022 report by Zippia, an online recruitment service.

Fairway Independent Mortgage Corp., of Madison, Wisconsin, Newrez of Fort Washington, Pennsylvania, and Pride Lending of Las Vegas, Nevada, each have their own styles and programs to promote diversity and inclusion, but all three are united in believing their ways benefit both employees and customers.

These companies recognize that their commitment is both the right way to do business and a boon to their bottom lines.

Addressing barriers to

homeownership and economic mobility is critical in light of increasing anti-LGBTQ+ violence and mounting state-level legislative rollbacks of LGBTQ+ civil rights that threaten the financial stability of LGBTQ+ people. And even for households in LGBTQ+-friendly states, rapidly declining housing affordability continues to price out households in every market, particularly younger households and those without intergenerational wealth.

Congratulations to the companies honored with PRISM Awards by National Mortgage Professional Magazine. Their efforts are going a long way toward balancing the disparities in home ownership and employment by the LGBTQ+ community. 

PRISM AWARDS FAIRWAY INDEPENDENT MORTGAGE CORPORATION

Madison, Wisconsin

Company CEO: Steve Jacobson FairwayMC.com

Fairway Independent Mortgage Corporation has been at the forefront of treating LGBTQIA+ employees with respect and providing support not offered on a significant scale in the mortgage industry.

In November 2021, it launched the FairwayPride Employee Resource Group. It has almost 100 members and meets quarterly. FairwayPride has developed into an incredible platform of support for employees providing an opportunity for members to share stories, resources, and learn from one another through various educational topics. Some of the topics covered in the meetings have included Gender Pronouns, Pride Flags, Allyship, Volunteering and Outreach in the LGBTQ+ community, National Coming Out Day, Transgender Day of Remembrance, Pride Month, and Outreach strategies and tips to reach the LGBTQIA+ community within the mortgage industry.

“I began my mortgage career with Fairway in 2017, tried another company in 2021 and came home to Fairway in March of 2023. I was so thrilled to see the FairwayPride Employee Resource Group was available and joined right away. This community means a lot to me because I know without a doubt that I am accepted and celebrated by my company, and it’s just another reason why I’m here to stay,” said Ariel Zufelt, loan officer.

On June 6, 2023, the company hosted its 1st Annual Virtual FairwayPride Happy Hour Event which was open to everyone at Fairway

Fairway Is A Good Ally ERG for LGBTQIA+ employees keeps them invested in the company

Independent Mortgage. It consisted of a trivia activity, a guest speaker who discussed how to be a good ally, an additional guest speaker who highlighted a LGBTQ+ youth nonprofit — one-n-ten, breakout room activities, sharing accomplishments by the FairwayPride group in 2023, and more! It is in the process of planning the 2nd annual event.

The response to the inaugural event was overwhelming. A post-event survey showed 100% of attendees said the Virtual Pride Event was a valuable use of their time. Below are a couple of comments shared in the survey:

• “Liked learning about one-n-ten and the other group members was amazing! I look forward to becoming a better ally!”

• “This was a reminder of how important community and support are to not only ourselves but to others that you would not expect. Making small adjustments to simple things like the language we use surrounding gender, pronouns, spouses, etc. makes a big difference even if it seems small to us.”

In addition to providing a community for the

LGBTQIA+ employees, the FairwayPride Group strives to be more than just a support group. In today’s difficult market in the mortgage industry, Fairway wants to encourage its employees to be more open and courageous in building stronger relationships with all communities it serves, especially the underserved communities. In October 2023, it hosted a call that featured a Fairway branch manager and loan officers who discussed outreach strategies and tips to reach the LGBTQ+ community and better serve them to their dreams of homeownership.

Also, in 2022, Fairway took steps to provide additional benefits to help LGBTQ+ employees. Fairway launched the Family Building Benefit Program, which does not require a diagnosis of infertility to participate in. This removed the barrier for LBGTQ+ participants so that Fairway could support all its employees’ paths to parenthood. The program supports the diverse needs of all employees living in traditional, same-sex, or alternative families.

PRISM AWARDS

Fort Washington, Pennsylvania

Company CEO/ President: Baron Silverstein

Newrez.com

Newrez’s support for LGBTQ+ employees is significant and wide-ranging: from life-changing health benefit coverage to an active employee resource group (ERG). Its health benefits include care for transitioning employees and promoting sexual health. The PRIDE ERG is dedicated to fostering a community of allyship and camaraderie for LGBTQ+ team members and has 402 active employees. They created a comprehensive and first-of-itskind benefits resource guide for trans people within the company, along with HR training to supplement and educate managers on the sensitivities surrounding transitioning employees and their HR business partners.

The PRIDE ERG is especially active during Pride Month, hosting LGBTQ+ history seminars, guest speakers from support and counseling partners like Over the Rainbow, sponsored performances from LGBTQ+ entertainers for employees, and onsite celebrations for employees of all backgrounds to participate in and learn about Pride. Newrez PRIDE has even been featured in Greenville, South Carolina’s and Dallas, Texas’ local Pride parades with booths, giveaways, and marketing flyers that share Newrez’s vision of equality and inclusion.

Newrez is proud of its track record, including philanthropic contributions and empowering our workforce through education and resources, which set the standard for inclusion and equality within the mortgage industry. This includes investing in education for its sales force (and all employees) on pronoun importance and use, as well as updating and integrating internal systems to reflect different pronouns that represent

Newrez ‘Cares

Fiercely’ LGBTQ+ causes are supported with 100% matching donations and more

all of the unique employees enterprise-wide.

Never missing a chance to empower its employees, Newrez’s corporate giving program matches all donations to eligible nonprofits (including those that support LGBTQ+ causes and organizations) at 100%, up to $1,000 annually per employee. Wherever possible, the mortgage lender/servicer shares opportunities for employees to volunteer in the community, including at local Pride parades where the company has a presence. In fact, one of its employees successfully applied for — and was awarded — a Newrez Philanthropic Grant on behalf of a local grassroots LGBTQ+ organization, Upstate Pride. Upstate Pride works to empower people of all gender expressions and sexual identities in the Upstate of South Carolina by promoting acceptance through education, advocacy, and networking.

community and empower LGBTQ+ individuals in the workforce. The challenge fostered a culture of belonging by leveraging the scientifically proven fact that it takes 21 days to form a new habit, build a new thought process, or learn a new perspective. By designing 21 conscious steps to learn more about the LGBTQ+ community, PRIDE ERG helped others form a mindset that will keep allyship and empathy at the forefront of our thoughts and actions. Each challenge aimed to sensitize, educate, and spread awareness about the LGBTQ+ community to participants.

Newrez strives to lead by example through its company values to “care fiercely” and “help everyone.” The PRIDE ERG hosted a “21-Day Ally Challenge” to educate colleagues in the ally

Along with the Ally Challenge, Newrez highlights important days in the LGBTQ+ community all year long, along with an array of educational programs and supportive counseling that’s available to our employees.

For the Transgender Day of Remembrance, PRIDE focused on the history and purpose of the holiday and discussed different famous trans people in history. Newrez welcomed a guest speaker, Zakia McKensey, founder and director of the nonprofit Nationz Foundation of Virginia, who shared her personal life story living as a trans woman. 

PRISM AWARDS

PRIDE LENDING LLC

Las Vegas, Nevada

Broker/Owner: Andrew Dort

PrideLending.com

Pride Lending has a basic mission: a commitment to the LGBTQ+ community. This is the Las Vegas-based company’s founding principle and is even present in its brand identity. It states, “The mission of Pride Lending is to empower underserved communities, with a special emphasis on the LGBTQ+ Community, to build wealth through homeownership by giving people the education and mortgage necessary to become homeowners.”

Diversity and inclusion are two of Pride Lending’s hallmarks. Its robust hiring process ensures employees come from various backgrounds transcending race, sexual orientation, gender identity, and beliefs.

Andrew Dort, broker/owner, says, “We believe that our company should look like the people we serve and embrace the beauty in diversity. We also, in addition to our internal policies, are actively engaged in external efforts to promote Queer-equality in the mortgage community at large. Many of our employees serve on multiple boards of LGBTQ+ focused organizations and are, as a company, a certified Business Enterprise by the National LGBT Chamber of Commerce.”

Dort is proud that his company’s actions have been recognized. “We have aggressive philanthropic goals supporting various charities and organizations that assist the LGBTQ+ community,” he said. Pride Lending has been named Business Partner of the Year by Compete. Sports. Diversity., an organization dedicated to promoting LGBTQ+ equality in sports. Also, many of its employees engage in educational sessions (offered for free) to help prospective LGBTQ+ homebuyers learn about

Pride Shines Through In LGBTQ+ Commitment Company

focuses on diversity and inclusion for employees and customers

how to leverage the power of homeownership into generational wealth.

In an article in National Mortgage Professional Magazine last year, it was mentioned how Pride’s website boasts a rainbow-accented logo of a lion. A certification accompanies the site’s bright colors as an LGBT-owned enterprise by the National LGBT Chamber of Commerce and customer testimonials.

Dort’s business from the surface level is enthusiastic about serving a community he is also a part of. But Dort didn’t wake up one day and decide to start a company based on the principles of pride and safe spaces. He started as a receptionist in his early 20s at All Western, a Denver-based mortgage company, and slowly worked his way into a processing role. He transferred to Colten Mortgage — also in Denver — as a loan processor, eventually becoming a loan officer.

Colten transferred Dort to Las Vegas as a branch manager and in 2020, he decided to start his own company. “I knew I wanted to do my own thing at some point,” Dort said. “I’m a part of the LGBTQ+ community and I know that there’s a shared life experience with others in the community. I figured that some [LGBTQ+] clients would feel comfier making the biggest purchase of their life with someone in their own community.”

Dort saw a need for a niche in the industry after he witnessed others in the community face difficulties working with lenders while trying to buy a home. “I’m luckier than most. I’m a white man and I often can pass for being straight, and for me, I personally had no issues buying a home,” he said. “But when we compare that to my husband, who is non-binary and gender fluid, he probably would have had a harder time buying a home and connecting with a lender if he bought alone.” 

Newfi Wholesale

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Valuable Life Lessons

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:

Wouldn’t it be ironic to die in the living room?

•

FYI, if any of you are looking to file a grievance to my mother for introducing my insanity and goofiness into this world, you’re too late. Her customer service department has been outsourced due to high call volume.

•

I want to go back to the old days, when we used to pull maps out of the glove box and travel like pirates!

•

Something just occurred to me. What if all of the conspiracy theorists are part of the conspiracy?

•

A cold seat in a public restaurant is unpleasant. A warm seat in a public restaurant is far worse.

Next time a stranger talks to you when you’re alone just look at them, shocked, and whisper, “You can see me?” •

You know you are getting old when now you clean your house to the music you used to get drunk to.

•

Fun idea: Got no kids? Hire a babysitter anyway. Say your kid is asleep upstairs and must not be disturbed. On your return ask where your child is.

•

I’m going to start cussing people out, but do it biblical style like, “I hope your crops wither & bear no fruit & the ravens eat your mustard seeds.”

The older I get the more often I hesitate to throw out a used Ziplock bag because it isn’t even that dirty.

Is it socially acceptable to push a person back through a door you held open for them, if they don’t say thank you? •

I’m officially at that age where I don’t know if I am injured or this is just how I walk now.

Nick Roberson

WHERE IDEAS GO HEAD TO HEAD

VALVO VS BERMAN