Mortgage Banker Magazine May/June 2022

MORTECH

ORIGINATOR CONNECT

DATABANK MAY / JUNE 2022

MortgageBanker MAGAZINE

SHOULD YOU

SELL YOUR MORTGAGE BUSINESS?

LEGENDS of LENDING A SALUTE TO MORTGAGE BANKER’S INAUGURAL CLASS OF HONOREES

ALSO INSIDE

BLOCKCHAIN MIGHT HELP OR COULD BE HYPE

CUTS DON’T BUILD

GROWTH

A PUBL I C ATI O N O F A M E R IC AN B U S IN ES S M ED IA

Join us in the Big Easy!

The mortgage industry is going through a significant change. For mortgage origination professionals, it's a struggle to keep on top of all the changes, and to keep your sales strategies and marketing initiatives at their peak. You need to keep your pipeline filled, and you need the tools and directions to stay profitable, efficient, and effective. We've brought together the best in the business to create a top tier event, the Ultimate Mortgage Expo, specifically designed for mortgage origination pros.

Thursday, July 7, 2022

New Orleans, LA

+ Free NMLS Renewal Class July 8

www.ultimatemortgageexpo.com Enjoy free registration using our code OCNFREE .

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Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers resereve the right to determine final eligibility.

REGULATORY CORNER FANNIE: HOUSING ACTIVITY LOOKS TO HAVE TURNED

New single-family home sales fell 16.6% to a SAAR of 591,000 in April, the third straight monthly decline and the lowest level since April 2020, according to the Census Bureau. This follows a downward revision of about 7% to the March data. The number of new homes for sale rose 8.3% to 444,000, causing the months’ supply to jump by 2.1 to 9.0. There is a caveat, however, that only 8.6% of those homes for sale are completed (in 2019, an average of 24.1% of new homes for sale were completed).

The National Association of Realtors Pending Home Sales Index, which records contract signings of existing homes and typically leads closings by one to two months, declined 3.9 percent to 99.3 in April, the sixth consecutive monthly decline.

MortgageBanker STAFF

Vincent M. Valvo CEO, PUBLISHER, EDITOR-IN-CHIEF Beverly Bolnick ASSOCIATE PUBLISHER Christine Stuart EDITORIAL DIRECTOR David Krechevsky EDITOR Keith Griffin SENIOR EDITOR Mike Savino HEAD OF MULTIMEDIA Katie Jensen, Steven Goode, Douglas Page, Sarah Wolak STAFF WRITERS Rob Chrisman, Dave Hershman, Erica LaCentra, Nick Roberson, Lew Sichelman, Mary Kay Scully, CONTRIBUTING WRITERS

Gross domestic product (GDP), adjusted for inflation, decreased at a 1.5% seasonally adjusted annualized rate (SAAR) in Q1 2022, a decrease of one-tenth from the preliminary estimate, according to the second estimate from the Bureau of Economic Analysis. The revision was due primarily to downgrades to inventory investment and residential fixed investment, which were partially offset by an upgrade to personal consumption growth.

Alison Valvo DIRECTOR OF STRATEGIC GROWTH

Durable goods orders increased 0.4% in April, according to the Census Bureau. Orders for motor vehicles and parts slipped 0.2% after a 4.8% jump in March. Core capital goods orders (nondefense excluding aircraft) increased 0.3%. Shipments of durable goods rose 0.1%, the eighth consecutive monthly increase but the weakest growth in that period. Unfilled orders and inventories of durable goods were up 0.5% and 0.8%, respectively.

Navindra Persaud DIRECTOR OF EVENTS

FREDDIE: AUTOMATION OF KEY UNDERWRITING CRITERIA

Freddie Mac is utilizing new automated underwriting capabilities that allow lenders to verify assets, income, and employment using borrower-approved bank account data.

The new capabilities are available to mortgage lenders nationwide through the asset and income modeler (AIM) in Freddie Mac Loan Product Advisor (LPASM), the company’s automated underwriting system, it said.

“This industry-first innovation supports our mission of making sustainable homeownership more affordable and accessible,” said Andy Higginbotham, Freddie Mac single-family chief operating officer. “Our AIM suite of services will be instrumental in bringing greater accuracy and efficiency to the underwriting process, which will be critical as the mortgage landscape continues to shift toward greater purchase market activity.”

AIM’s newest enhancement, the automation of 10-day pre-closing verification (PCV) of employment, will be available June 1. The capability provides the borrower’s current employment status using borrower-approved bank account (direct deposit) or payroll data obtained from designated third-party service providers, Freddie Mac said. It said this provides lenders a more efficient option than obtaining oral or written verification of employment prior to closing.

Freddie Mac said a recent study it conducted found that by adopting automated offerings (like AIM), lenders can significantly boost efficiency and shorten cycle times by as much as 15 days. In addition, the efficiencies translate into a 30% reduction in loan origination costs, greater customer satisfaction, and an increase in applications being completed and closed, it said.

Meghan Hogan DESIGN MANAGER Christopher Wallace, Stacy Murray GRAPHIC DESIGN MANAGERS

William Valvo UX DESIGN DIRECTOR Andrew Berman HEAD OF CUSTOMER OUTREACH AND ENGAGEMENT Tigi Kuttamperoor, Matthew Mullins MULTIMEDIA SPECIALISTS Melissa Pianin MARKETING & EVENTS ASSOCIATE Kristie Woods-Lindig ONLINE ENGAGEMENT SPECIALIST Michael Castro MARKETING MANAGER Ben Slayton FOUNDING PUBLISHER Submit your news to editorial@ambizmedia.com If you would like additional copies of Mortgage Banker Magazine Call (860) 719-1991 or email info@ambizmedia.com

www.ambizmedia.com © 2022 American Business Media LLC. All rights reserved. Mortgage Banker magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: American Business Media LLC 88 Hopmeadow St. Simsbury, CT 06089 Phone: (860) 719-1991 info@ambizmedia.com

I NNOVAT I O N

Blockchain, Artificial Intelligence & Machine Learning: Hype or Help?

ALL THREE COULD CONTRIBUTE TO FASTER DIGITAL TRANSFORMATION

T

By S COT T R O L L ER , S PECIA L TO M ORTGAGE BAN KE R M AG A ZIN E

he mortgage industry has been talking about ending its ‘Paper-Palooza’ for at least 20 years as we linger behind other industries like healthcare and insurance. While presently enjoying a surge in innovation and investment, it’s just a small spark. Digital technology opportunities span the entire ecosystem, bound only by the willingness of its participants.

Artificial intelligence (AI) and machine learning (ML) are the most understood and deployed, thereby leading the way in these early stages. Blockchain, on the other hand, is more “fuzzy” to many, yet has a persuasive cast of evangelists.

There are companies, and even countries, being built on blockchain tech, such as Figure and Liquid Mortgage. Estonia is blockchain crazed, starting with its own government entities, promoting exponential business growth. They apparently began 20 years ago. Sweden and the UAE are said to be leaders in mortgage blockchain.

In U.S. mortgage, there appear to be more theoretical blockchain use cases than actual deployments, for now. Although, when you understand what is possible and some current successes, optimism abounds.

ARTIFICIAL INTELLIGENCE (AI) & MACHINE LEARNING (ML) Companies across our industry are increasingly deploying AI/ML, with big gains surrounding borrower engagement, credit decisioning, risk and portfolio

4 MORTGAGE BANKER | MAY / JUNE 2022

analysis and fraud detection – to name a few.

A great barometer of adoption is the corresponding level of regulator interest.

Recently, the Federal Housing Financial Agency’s (FHFA) Division of Enterprise Regulation (DER) has increased monitoring of AI/ML usage at Fannie Mae and Freddie Mac. AI/ML can pose added risks including operations, compliance, modeling and financial.

In February 2022, the DER issued an advisory bulletin specific to the use of AI/ ML, said to be the first such guidance from any mortgage regulator. The guidance asks institutions to increase risk management practices. The FHFA, as well as the Mortgage Industry Standards Maintenance Organization (MISMO), also recommend institutions define a code of ethical standards for checks and balances. With adoption already well-underway at the government sponsored enterprises (GSEs), AI/ML has arrived.

Advances in AI/ML are happening so fast some leaders concede they struggle to keep up, causing a bit of decision paralysis. According to the multiple senior leaders we spoke to, mostly representing Top-40 originators, some said they feel overwhelmed by the pace and breadth of digital tech. What a strange dichotomy – we waited for years to begin, and we now slow-walk action on where to start. It is a fantastic disposition, unless the result remains indecision.

Given the steady growth of experienced

AI/ML vendors and deployments, this technology will soon become compulsory, and those institutions that delay will be disadvantaged on many fronts.

WHAT ABOUT BLOCKCHAIN?

Too few of us thoroughly understand blockchain. However, experts speak with great confidence about how it will someday obliterate the mortgage world as we know it. We certainly believe the vast potential, in that nothing is poised to revolutionize more than blockchain. There are just some immense complications, far more complex than with AI/ML. You can spend days researching articles, white papers and eBooks about blockchain in mortgage. It is equally promising and captivating when you envision the potential for: · Originating in days, not weeks or months · Registering and storing property/ title/deeds on the blockchain, vs. title insurance · Single step auto-verify/QC, versus multiple duplicate efforts/parties · Near real-time payment, settlement and reconciliation · Auto-alerts and reports on credit, compliance, risk, etc. · Faster MBS & MSR transfers and liquidity, less instability · Eliminates countless middlemen and redundancy · Radically drives overall costs down (efficient, accurate, compliant, etc.)

BLOCKCHAIN PUNDITS GENERALLY CLAIM IT’S AT LEAST AS SECURE AS TODAY’S PLATFORMS, IF NOT MORE. Our excitement, however, tends to normalize when we ponder mindset changes required.

Blockchain technology is so robust, with such radical change potential, one must wonder how executives will embrace ‘everything’ (i.e., info, records, data, payment, etc.) on a blockchain platform described as: • A public distributed ledger for storage of info/data/actions in blocks on a decentralized database with complete transparency. No one person/company has sole control. Every transaction is sent to every other ‘privileged’ party with approved access.

• When a block is added to the network, multiple pre-defined parties must validate and approve it before it gets added to the ledger.

• Smart contracts, in simplistic terms, enable rules and task execution for certain events/blocks. Example: Notify all three interested parties when a task completes.

• Lenders must have trust in block (data) creators and accept they may not own it as they always have in the past.

• Documents get validated and assigned a unique code for the block, called a hash.

Only the hash and related smart details

(i.e., verified, QC’d, compliant, etc.) post to the ledger, with physical docs going to a separate eVault. This doc never needs reviewed again later in the lifecycle, instead trusting the original validations.

• The mortgage process includes many participants. For a lender to achieve any blockchain scale, most other engaged parties must also someday deploy At this point, there are probably at least a few readers thinking more about ‘blockCHANGE.’ Understandable – we are a highly nuanced and risk averse industry. Flipping that switch, no matter how many years in the transition, is intimidating.

All the references to “public, decentralized and transparency” beg the question of security. Blockchain pundits generally claim it’s at least as secure as today’s platforms, if not more. Each block references the previous block, forming the chain. If a fraudster tries to make an unauthorized change, the links with other blocks are broken.

This, in turn, invalidates the chain from the change point. Because it is a distributed ledger, the fraudster would have to replicate the exact same change within every single node instance. While not impossible,

fraudsters will likely be more apt to pursue easier targets.

Blockchain challenges are undeniable and run far deeper than described herein.

Fortunately, the same can be said about the huge upside. Success requires a modest starting point with many deployment phases, being a multi-year marathon, not a sprint.

Change management protocols will be equally as essential as project management.

FASTER DIGITAL TRANSFORMATION

The real question is – what will drive faster digital transformation, be it AI/ML or blockchain?

Triggerable events are usually business plans with hefty top-line growth objectives or bottom-line budget challenges. The larger the perceived gaps, the greater automation interest. Competition and compliance issues will also motivate leaders. Regardless, guarding the customer experience will always remain an imperative.

So, is widespread digital transformation hype, or help? We have settled on hope.

Small sparks possess wildfire potential.

Scott Roller founded Vendor Surf (www.

VendorSurf.com), with nearly 20-years dedicated to revolutionizing sourcing and managing vendors in mortgage. His companies monitor and report on the vendor ecosystem to provide participants what they need to excel in today’s market.

MORTGAGE BANKER | MAY / JUNE 2022 5

Now on tour!

Join your fellow hard-working mortgage pros at one of our national Mortgage Expos.

G

ive your career a boost by attending one of our many regional mortgage events for loan origination professionals. Network with hundreds of mortgage brokers, loan originators and bank and credit union lending officers from throughout your region for events full of education, networking and fun. These events includes a broad array of event partners from throughout the mortgage community, multiple education sessions and top speakers. You’ll be growing your business and your contacts in a setting packed with passion, professionalism and fun.

Plus, earn your NMLS continuing education credits at FREE classes, happening the next day and open to all conference attendees.

OR I G I NATOR CO N N ECT N E TWO R K .CO M

Attend for free,* use code:

NMPFREE

Complimentary registration available to NMLS-licensed active LOs and their support staff.

Show producers reserve the right to determine final eligibility. NMLS Renewal class open to expo attendees only, other restrictions apply.

6 MORTGAGE BANKER | MAY / JUNE 2022

UPCOMING EVENTS

JUN

23

JUL

6

JUL

7

JUL

21

AUG

11

AUG

19

AUG

19

Great Northwest Mortgage Expo™ P O RT L AN D, O R N MLS R EN EWA L CL A S S

Mortgage Star™ N EW O R L E A N S , L A N MLS R EN EWA L CL A S S

Ultimate Mortgage Expo™ N EW O R L E A N S , L A N MLS R EN EWA L CL A S S

Arizona Mortgage Expo™ PH O E N IX , A Z N MLS R EN EWA L CL A S S

California Mortgage Expo™ S AN D IEG O, CA N MLS R EN EWA L CL A S S

Originator Connect™ L AS VEG A S , NV N MLS R EN EWA L CL A S S

Non-QM Summit™ L AS VEG A S , NV N MLS R EN EWA L CL A S S

SEP

1

SEP

8

SEP

13

OCT

11

OCT

18

NOV

8

DEC

13

Texas Mortgage Roundup™ DA LL A S , TX NM LS R E NEWA L C L A S S

Great Northwest Mortgage Expo™ SE AT TLE , WA NM LS R E NEWA L C L A S S

California Mortgage Expo™ PA SA DE NA , CA NM LS R E NEWA L C L A S S

California Mortgage Expo™ OA K L A ND, CA NM LS R E NEWA L C L A S S

Colorado Mortgage Summit™ DE NVE R, CO NM LS R E NEWA L C L A S S

Texas Mortgage Roundup™ HO USTO N, TX NM LS R E NEWA L C L A S S

OCN Mortgage Holiday Party™ I RVI NE , CA

CAS H D E P LOY ME NT

Mortgage Lenders Face Profitability Challenges THE MORTGAGE DIGITIZATION WAVE IS HERE – DON’T GET LEFT BEHIND

D

By PAU L D O M A N, CO NT R IB U TIN G WRITER, M ORTGAGE BAN KE R M AG A ZIN E

espite the recent housing market boom, real estate lenders are on edge.

Shrinking profit margins are putting pressure on lenders to rethink business strategies in the wake of increased competition, changes in consumer demands, inventory shortages and evolving market dynamics.

Findings from the March 2022 Mortgage Lender Sentiment Survey by Fannie Mae confirm the challenges are real. Lenders’ profitability outlook has stayed negative for six consecutive quarters, and this quarter it dropped to a new survey low. According to the survey, “75% of mortgage lenders believe profit margins will decrease in the next three months, up from 65% in the prior quarter, while 17% believe profits will remain the same and 9% believe profits will increase.”

There is reality behind the negative sentiment – profits for nonbanks shrunk 44% in 2021 as a result of rising interest rates slowing demand, lower refinance originations and higher expenses.

Unfortunately, there is no crystal ball to predict the future of the finance and housing markets, consumer demands and emerging competition. However, smart lenders are realizing they can control how they prepare,

respond and adapt to change – aggressively (40%) or very aggressively (41%) pursuing with process automation and mortgage process digitization. technology playing critical roles The survey goes on to state: in their business strategy and • 76% believe digitization framework. efforts will lower origination When business leaders look costs, ensure stronger at decreasing profit margins, compliance and reduce risks the natural response is to get • 78% say the introduction of lean – cut costs and eliminate digital processes and advanced PAUL DOMAN overhead. The impact will help analytical tools to the home increase the bottom line, but lending industry will lead to often the teams within the improved decision making and security organization are forced to adjust, working and better outcomes for borrowers. The harder with fewer resources. figure reaches 94% among leaders and 88% This strategy is unlikely to work in the among CEOs. current labor market – where the fight for • 78% agree that digital leaders will be talent is fierce and workers continue to able to provide more than just loans. They’ll resign at an unprecedented pace. And more also work closely with their customers to importantly, an expense cutting approach develop a wide range of complementary does nothing to accelerate top line growth value-added products and services. Not or increase market share at the rate needed surprisingly, the figure reaches 94% among for sustainable market leadership and self-described leaders and 88% among profitability.

CEOs. In order to rise above the competition, When you look at the statistics, it smart lenders are embracing process is difficult to ignore that lenders need automation and technology modernization to embrace process automation and at the core of their business strategies. The technology to remain competitive. But it digitization of the mortgage industry has begs the question – how can you ensure become a hot trend among tech-savvy investments in process automation and lenders. In fact, 81% of executives polled technology actually translate to business in a Forbes Insights Survey say they are growth and profitability?

AN EXPENSE CUTTING APPROACH DOES NOTHING TO ACCELERATE TOP LINE GROWTH OR INCREASE MARKET SHARE. 8 MORTGAGE BANKER | MAY / JUNE 2022

IMPLEMENT A STRATEGY-FIRST APPROACH While some attention has been paid to digitizing the loan origination process, the rest of the mortgage loan process is archaic in comparison. Back office processes such as appraisal management, title processing and closing preparation are often inefficient

– mostly due to outdated technologies and cumbersome processes that have been cobbled together to meet the needs of the business over time. When thinking about embracing technology and process automation, a more holistic look across the full mortgage loan cycle is needed. Where can you eliminate redundant, time-consuming processes and outdated systems? How are your current processes and tools preventing agility and collaboration? What are areas for improvement, and more importantly, what goals you are trying to achieve?

Technology is meant to enhance both the consumer and lender experience by streamlining and optimizing manual tasks and data entry – freeing up time for your team members to be focused on customerfacing, revenue-driving projects. Developing a business strategy that tackles these pain points and selecting technology that empowers you to better control your business is the first step in your path to success. Seek out technology that has the flexibility to adapt to your unique business – retrofitting your processes and workflows to conform to technology limitations is a roadblock to success. Understand your processes, set a

strategy and select the technology platform that best addresses your needs.

technology – giving them a competitive

LEVERAGE TECH TO CUT COSTS

handle a higher volume of loans, expand

When your team is toggling between multiple spreadsheets, emails, AMCs and other systems of record throughout the loan process, it is draining time and resources.

This scattered approach is riddled with inefficiencies and unnecessary delays that actually lengthen the loan origination to close cycle – having a direct and negative impact on profitability. Manual data collection and aggregation result in higher error rates, lack of collaboration, reduced transparency and potential compliance oversights. The combination of process automation powered by technology significantly reduces these risks – while also accelerating loan turn times and time-to-revenue. By leveraging technology to decrease time spent processing a loan, you enable your business to take on more customers, process more loans and increase revenue streams.

GAIN A STRATEGIC ADVANTAGE

Tech-savvy lenders are seeing increased profits from process automation and

advantage. They are better equipped to to new geographies and develop more loan products to meet consumer demands.

Technology enables lenders to embrace whatever market shift comes their way because they have the processes and systems in place to adapt and are inherently more agile.

If profitability challenges are keeping you up at night, technology and process automation may be your answer. The key to success is addressing the full lifecycle of your mortgage loan process, from origination to appraisal management to title and closing.

The mortgage digitization wave is here – don’t get left behind.

Paul Doman is the president and CEO of Accurate

Group

(accurategroup.com),

a

nationwide provider of technology-driven appraisal management, title data, compliance and closing solutions.

MORTGAGE BANKER | MAY / JUNE 2022 9

Homebuyers Regain Some Control As Supply Grows And Demand Pulls Back

M

ay marked a turning point in the pandemic housing frenzy, as buyers regained some control over the market, according to a new report from Redfin, the technology-powered real estate brokerage. This limited sense of control comes at a great cost, as 5% mortgage rates and record-high prices have edged many buyers out of the market.

Pending sales posted their largest annual decline since spring 2020, while the Redfin Homebuyer Demand Index declined 9% during the four weeks ending May 29. The number of homes for sale climbed to a new high for this year, posting its smallest decline since April 2020. A growing share of sellers are recognizing the new limits to their power. More than one in five dropped their price, the highest rate since October 2019.

“The sudden surge in mortgage rates led to a sudden and significant cooldown in the housing market in May,” said Redfin Economics Research Lead Chen Zhao. “However, mortgage rates are now stabilizing and homes remain in short supply, so while we do expect home-price growth rates to decline, we don’t expect prices to fall much at the national level. For homebuyers trying to determine the best timing this year, the main benefit of waiting is that there may be less competition as supply starts to build up.”

LEADING INDICATORS OF HOMEBUYING ACTIVITY:

• Fewer people searched for “homes for sale” on Google—searches during the week ending May 21 were down 10%

10 MORTGAGE BANKER | MAY / JUNE 2022

from a year earlier.

• The seasonally-adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—was down 9% year over year during the week ending May 29. This was the seventh consecutive decline in the index.

• Touring activity from the first week of January through May 29 was 27 percentage points behind the same period in 2021, according to home tour technology company ShowingTime.

Touring activity was lower than the first week of January for the first time this year.

• Mortgage purchase applications were down 14% from a year earlier, while the seasonally-adjusted index was down 1% week over week during the week ending May 27.

• For the week ending June 2, 30-year mortgage rates decreased slightly to 5.09%.

KEY HOUSING MARKET TAKEAWAYS FOR 400+ U.S. METRO AREAS:

(Unless otherwise noted, this data covers the four-week period ending May 29.

Redfin’s weekly housing market data goes back through 2015.)

• The median home sale price was up 16% year over year to a record $400,999.

• The median asking price of newly listed homes increased 17% year over year to $412,450.

• The monthly mortgage payment on the median asking price home declined slightly to $2,391 at the current 5.09%

•

• •

•

•

•

• •

•

mortgage rate. This was up 40% from $1,710 a year earlier, when mortgage rates were 2.99%.

Pending home sales were down 8% year over year, the largest decrease since May 2020.

New listings of homes for sale were flat from a year earlier.

Active listings (the number of homes listed for sale at any point during the period) fell 10% year over year—the smallest decline since April 2020.

54% of homes that went under contract had an accepted offer within the first two weeks on the market, up from 53% a year earlier.

39% of homes that went under contract had an accepted offer within one week of hitting the market, flat compared to a year earlier.

Homes that sold were on the market for a record-low median of 15 days, down from 19 days a year earlier.

A record 57% of homes sold above list price, up from 51% a year earlier.

On average, 5% of homes for sale each week had a price drop. Overall, 20.1% dropped their price in the past four weeks, up from 13.8% a month earlier and 10.1% a year ago. This was the highest share since October 2019.

The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, was flat at an all-time high of 102.8%. In other words, the average home sold for 2.8% above its asking price. This was up from 101.8% a year earlier.

MORTGAGE BANKER | MAY / JUNE 2022 11

E CO NO MI C S

2022: The Year of M&A AFTER UNPRECEDENTED EARNING YEARS, IS NOW THE TIME TO SELL?

A

By R O B CHR IS M A N, CO NT R IB U TIN G WRITER, M ORTGAGE BAN KE R M AG A ZIN E

s we move through the year, mergers and acquisitions in residential lending continue to occur. They fall into two very basic categories: those that grab the headlines, or smaller, quiet acquisitions of branches and small operations. Either way, a merger with another lender or vendor, or an acquisition, is newsworthy.

For some owners and senior management, being acquired has been a goal since opening.

Deals can range from no money changing hands in a merger of equals all the way up to multimillion or billion-dollar transactions.

Owners should ask themselves, “Should a successful mortgage banking owner/ operator or vendor even consider exploring a company sale following unprecedented earnings in 2020 and 2021, especially with the industry already seeing lower volume and lower profits in 2022?” While some owners are prepared to ride it out, others feel that decent margins and volumes have vanished. For lenders, the layered risk of the combined uncertainties makes a strong case for prospective sellers to consider their options.

Some sellers, whether lenders or vendors, are tired of “the game” and suggest that in 2022 companies will be struggling to survive.

Rates have moved higher, as expected, there are continued housing inventory shortages, constant talk of margin compression, volumes possibly dropping, and less income.

All are problematic. Pessimists will point to insufficient capital and the prospects for a looming cash crunch while owners of mortgage servicing rights continue to sell their assets.

Selling a company isn’t easy under any market conditions. But a profitable lender that has grown and laid the groundwork for future growth, has the economic means (e.g., savings) to address deficiencies that need improvement, to demonstrate that they are profitable rather than try to explain why they aren’t, and still keep earning the bottom line while options are being explored, will trade 12 MORTGAGE BANKER | MAY / JUNE 2022

at a premium. of important employees and Those interested in buying producers. Management should an originator may want to be decisive about the direction simplify activities to enable of the new organization and a greater focus on segments make every effort to integrate where they see the best the most successful elements opportunity for growth, for from the existing entities into example, finding the right the new organization. The new partnership that would provide organization will then grow out the support and structure that ROB CHRISMAN of the best of the new and old and retail sales teams require to should have a good chance for be successful. A merger or success. acquisition can leverage its strong products, pricing, and superior customer experience to CULTURAL COMPATIBILITY magnify earnings. Making sure companies Anyone thinking about a transaction like have a cultural fit is important. this should start by preparing a check list In fact, some will argue that cultural fit and ranking the factors most critical in the is the most important component of a deal. evaluation process. Assess each prospective Any company considering a merger should company against that check list so that delve deeply into how the merger will build you can compare one against the other franchise value. There are many elements on an apples-to-apples basis, paying close beyond the purely financial that are critically attention to the corporate culture. While important, and these cultural and strategic culture is very intangible and subjective, elements must be considered. They are best cultural compatibility is the key element assessed by the people who truly know the of a successful new business relationship. lender or vendor, namely, the people within For those lenders that represent serious the company. Merging lenders and vendors possibilities, talk to existing and recentlyalso don’t have to be identical: Differences recruited branch managers. Ask their between merging parties can complement opinion and if they are candid, you can learn one another and diversify the business a lot. model.

What are the mechanics of a transaction?

Each deal is different, but many have a QUESTIONS TO ANSWER premium that is partially paid upfront and Questions must be answered. Are the over an earn out. Paying an owner three economic engines of the merging parties times 2020 or 2021’s earnings is unlikely. But similar or complementary? What about a deal incorporating a reasonable proforma the product mix: is it complimentary? Is of future earnings (including 2022 — 2025) this an opportunity for a vendor or lender is more suitable. to diversify its income stream, or will it Any seller should understand the key lead to problems? Do the merging entities factors that determine a company’s valuation have similar competitive forces and market and typical terms. They should know what share in their respective markets? Do the to expect during the due diligence and deal management teams have a similar outlook? process, as well as the legal, regulatory, tax Are business customs compatible? and accounting, operational, and financial If the merger appears to be a good fit after implications of selling and acquiring. But careful consideration of all things financial for a deal to succeed over the long term, and cultural, the next hurdle is one of cultural fit and common goals are the critical integration. The customer experience is of paramount priority, but so is the handling components.

“Treat employees like family and the profits will follow.”

—Bruno Pasceri, President, Incenter

Thank you, Bruno, for creating a culture and a company that we are all so proud and honored to be a part of.

The Incenter Leadership Team

incenterms.com

MORTGAGE BANKER | MAY / JUNE 2022 13

A look at the most talented, ambitious and legendary individuals Mortgage Banker Magazine asked readers and mortgage professionals to nominate mortgage professionals deserving of the Legends of Lending award. We set out to find the most talented, ambitious and legendary individuals who are achieving excellence and making a difference in the mortgage industry.

We received many nominations. Each was reviewed carefully by a panel of judges and 29 winners were selected.

Please join us as we salute the inaugural class of Legends of Lending. >>

14 MORTGAGE BANKER | MAY / JUNE 2022

Patty Arvielo

President and Co-Founder New American Funding What is one of your most legendary values? Why? I have a strong sense of commitment and dedication. That sense of hard work and loyalty was instilled in me by my family growing up and it’s shined through at every stage of my career.

When I joined the mortgage business, I knew nothing about how mortgages worked, but I was committed to learning. I studied every part of the business and it helped me grow to the point where I was able to start my own mortgage company with my husband, Rick. We grew into one of the biggest lenders in the country because we were committed to doing things the right way and dedicated to building an amazing company.

Which of your qualities do you think most contributed to your success?

For me, it’s all about helping people. I am a giving person by nature. What drives me professionally is the tremendous opportunity to increase homeownership in minority communities, which have long been underserved. That drives me to create change and offer everyone the opportunity to buy a home. Beyond that, I love the human aspect of this industry. I love people, and I value being able to lead people.

What is the most important or valuable advice that you have received since being in the mortgage industry?

To always support and uplift those around you. I learned early in my career about the importance of having someone to guide you. I had several mentors who helped me build my career and I wouldn’t be where I am without them. We work closely with team members to help them navigate the challenges and triumphs that come when building their career.

What contributions are you making to the future of the mortgage industry?

I’ve been very fortunate in my career, having built a successful company that is thriving. Our success is driven by our people.

Now, more than anything, I want to do everything I can to support them and help them grow and build their careers.

We are working hard to build a multicultural workforce that is prepared to thrive. We are also focused on recruiting directly from colleges. This business can be exciting and we’re working hard to show just how great it can be to work in the mortgage industry.

Michael Borodinsky

Vice President/Branch Manager Caliber Home Loans What is one of your most legendary values? Why? Being a trusted industry resource to both referral partners and consumers for the past 39 year.

Which of your qualities do you think most contributed to your success?

In one’s role as a loan officer you need to act as a financial wealth manager and provide honest, ethical, and sound financial advice to a customer.

These qualities contribute to the best customer experience possible, and is the foundation for future business and referrals.

What is the most important or valuable advice that you have received since being in the mortgage industry?

How to appreciate the important role a mortgage loan officer plays in helping customers achieve their dream of homeownership.

What contributions are you making to the future of the mortgage industry?

My greatest contributions are to share my business model, values, and experience with my sons, who have now joined the mortgage industry.

What are the main problems the industry is facing today and what have you done to address or resolve them?

There is a clear delineation between “online” lenders and lenders who are both local and prioritize a more personal experience. Consumers are tempted to believe that there is “one size fits all” internet lender that can accommodate all financial scenarios- which can spell disaster at the last minute. My goal is to continue to educate both my referral partners and customers that they are better served dealing with a local experienced lender who best match each personal financial scenario with the best possible program.

What significant changes would you like to see from the mortgage industry in 2023?

The federal agencies (Fannie Mae, Freddie Mac) need to stop talking about the need to develop programs for first-time buyers and instead modify their guidelines to encourage and support the very buyers they claim to prioritize.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The industry is getting better but there are still too many underserved borrowers. At New American Funding, we have established several initiatives to increasing lending to the people in these communities. Our Latino Focus initiative works to increase homeownership among the Hispanic community, while our New American Dream initiative does the same thing in the Black community. Each of these initiatives have delivered results as our company is one of the leading lenders to borrowers in each of those communities.

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Laura Brandao

Chief Growth Officer/Partner EPM What is one of your most legendary values? Why? To always leave everything better than I found it. We are put on the Earth for a reason and one of those reasons is to enhance what was here before we arrived. I entered the mortgage industry when I was very young and with each role I looked at it as an opportunity to enhance and improve every situation.

Which of your qualities do you think most contributed to your success?

Putting others first: it has never been about me. My first job in the mortgage industry was working in a call center and from the moment I started speaking with families I realized how much I can help them. I loved listening to their individual stories and by putting myself second it allowed me to be fully present and committed to helping them.

What is the most important or valuable advice that you have recieved since being in the mortgage industry?

The mortgage industry is cyclical. Don’t get scared if the market goes down, stay focused, limit your distractions and always put your clients first and you will always be OK. I have seen so many people jump out of the industry when it gets more difficult but that is not the right philosophy. You have to be at your best during all of the seasons and you will always be okay.

What contributions are you making to the future of the mortgage industry?

In the last few years I have dedicated a lot of time to creating, building and managing different women and diversity groups.

I am currently the chair of the NAMMBA Visionary program, the chair of Women with Vision, am on the board of the MBANJ, and the chair of the women’s committee. I am committed to teaching, supporting and celebrating others.

What are the main problems the industry is facing today and what have you done to address or resolve them?

I think we have a serious issue with the lack of new/younger/ diverse talent coming into the industry. We need to ensure that we are developing the next generation to bring in fresh perspectives and assist us in building a strong bond within our local communities.

What significant changes would you like to see from the mortgage industry in 2023?

I would like to see more collaboration within our industry. We are all better together and when the market is changing quickly we need to come together to share ideas and support each other so we can be there for the families and client partners we serve. We are all working towards the same thing so it’s time that everyone joins forces for the good of all.

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Christy Bunce

Chief Operations Officer New American Funding What is one of your most legendary values? Why? Honesty is one of my best values.

Growing up in the mortgage industry for the last 27 years, I did not observe a lot of honesty in various parts of the business. Thank goodness I found a company that does have very honest leaders. Operating at a very high level of honesty with our team members and customers instills trust in the company and me as a leader. I think that sets us apart.

Which of your qualities do you think most contributed to your success?

One of the most important things I bring to the table is hard work. I realized early on in my career in mortgage to be successful takes a lot of hard work. I have that in my core. No matter what position I’ve ever held, I have always prided myself as someone who works alongside everybody that works with me and for me. And I do try to outwork most people that I work with. It just sets the bar higher for everybody that works with me as well.

What is the most important or valuable advice that you have received since being in the mortgage industry?

The best advice I received is to not lose sight of what we’re actually doing. People can lose sight of why we’re here, especially holding a position like I do, running a big business and being embroiled in mortgage politics. At the end of the day, we’re here to put buyers into homes. If everybody keeps remembering that, and not focusing on the wrong things, it will make a big difference.

What contributions are you making to the future of the mortgage industry?

I’m involved in the Mortgage Action Alliance, which all employed in the mortgage industry should be a part of. It’s important to understand what the politics and inner workings of the mortgage industry are. Another thing is that here at New American Funding, we are focused on training up our employees. We’re doing a lot of new leadership training this year. I think everyone who’s been in the business a long time needs to focus on the next generation of leaders. We need to get young people excited about working in the mortgage industry.

What significant changes would you like to see from the mortgage industry in 2023?

I’d like to see everyone working together to solve the issues we all face in this industry, namely mortgage industry leaders and the groups regulating us. Our industry needs to partner together to make sure that the new policies that are coming out aren’t negatively impacting the customer. What tends to happen is that people who don’t really understand the inner workings of the mortgage industry are making decisions that impact the industry. With a more robust partnership between industry leadership on what we are seeing and our experiences and what the regulators are concerned about and what they are trying to solve for, we can make sure we are not impacting our ability to lend.

Katherine Campbell Chief Digital Officer Assurance Financial

What is one of your most legendary values? Why? I am legendary for the motto of Progress Over Perfection! My teams know it well. Especially when an industry as a whole experiences a digital evolution, you simply cannot wait to launch the experience when everything is perfect.

As I say, today, you have nothing to prove, but every day there is something to improve.

Which of your qualities do you think most contributed to your success?

I have three strong values that have contributed to my successful career. My greatest gift is the ability to understand the consumer space and where they are in readiness to adopt tech experiences. Just because technology can do something, doesn’t mean people will. It’s our job to push the experience to the edge of surprise and delight, but not beyond trust and capability. I also know how to pick my battles but push executive teams to the next generation of experience for both customers and employees ... immediately following the release of the last generation! My competitive nature plays a role in this, too. Finally, with everything I do, I truly care. I care how our team feels about doing their work and how a customer feels when working with us.

What is the most important or valuable advice that you have received since being in the mortgage industry?

Keep showing up! Whether you are the loan officer, the marketer, or the technologist, it is a competitive space. No matter how far behind you may feel some days, keep showing up, give it your best, and the persistence will outweigh the panic.

What contributions are you making to the future of the mortgage industry?

When people discussed the one-touch mortgage in 2018, it seemed like a lot of hot air. Well, with the investment into fintech reaching $5 billion per year, and of course COVID-19, there is already regular talk of a 15-day mortgage being the new normal in the not-so-distant future.

My contribution is to partner with tech companies to be an early adopter of tools and processes in a small defined group to help learn what works and what creates inefficiency. Then, I do a lot of webinars to share the learnings. While the process for the borrower needs to improve dramatically, technology is a massive investment, and the CPFL (cost per funded loan) must decrease to be competitive.

The one benefit of this downturn of the market is that after having big budgets, we have to find ways to be lean with the choices we made. Exciting times!

What significant changes would you like to see from the mortgage industry in 2023?

It simply must be the year that investors, geographic regions, and warehouse lines wholly work with eClosings. From hybrid to eNote to RON (remote online notary), this is the final piece of the puzzle to solve for a true digital mortgage. eClosing is the perfect example of where the borrowers market is more ready to adopt this option than industry and state partners have been.

Patricia L. Cook

Chief Executive Officer Finance of America Companies What is one of your most legendary values? Why? “Excellence every day” is one of the mantras or values that has truly helped me succeed and get to where I am today – and it is one of the values I aim to instill in my family, friends and colleagues. When you commit to working hard, it gets rewarded. It is impossible to always have a good day and we know there will be challenges along your personal and professional journey, but if you commit to excellence and continue working hard then you will always come out better in the end. As a leader and mentor, I try to impart these values to aspiring talent.

Which of your qualities do you think most contributed to your success?

Working hard while treating everyone with respect helped me build trust and knowledge, which, in turn, has made me a more effective and compassionate leader. At Finance of America, my approach has helped build a resilient, empathetic culture that has fostered the bonds needed to manage a changing company. It was never my goal to become a CEO. My “excellence every day” mantra opened doors to exciting, unexpected opportunities. I feel truly fortunate to be able to look back on a long career that has been filled with rewarding experiences. Becoming one of the few female CEOs of a publicly traded financial services company is my greatest accomplishment to date.

What is the most important or valuable advice that you have received since being in the mortgage industry?

Find something that motivates you, hold onto it and use that to help inspire you along the way. For me, my family has always been the number one motivator. They are the reason I have worked so hard and everything I have done throughout my career has been to provide for them. I wanted them to be proud of me. All the long nights and weekends I put in at the office were to help ensure they had everything they needed to succeed. You need a driving force to help support you in times that are tough and to help you remember why you are working so hard. The mortgage industry can be tough. It definitely has its ups and downs, so it is helpful to have something that motivates you and keeps you going.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The record low interest rates and high home price appreciation in recent years were a boon for the mortgage industry, especially given the high volume of refinances we saw with interest rate drops. However, now rates are rising, and the industry’s cyclical nature is creating some volatility. Companies that only focused on refi and did not diversify their business or invest in new products and services will face challenges. We believe our focus on optimizing our business while continuing to invest in our growth opportunities in areas such as reverse mortgage, home improvement, or investor rental businesses will pay dividends in the long run.

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Casey Cunningham Founder & CEO XINNIX Inc.

What is one of your most legendary values? Why? One of my most “legendary values” is service. My life did not start with a commitment to service. At the beginning of my career, I was self-serving, competitive, and hard charging. Over time, I learned that the true gift of life was the gift of giving and serving others. Fully giving your time, resources, energy, and support to the betterment and enrichment of others has been my road to success. The measure of my life is not based on how many material possessions I’ve acquired but on how much I’ve served, empowered, enriched, and blessed others.

Which of your qualities do you think most contributed to your success?

All my life, my precious mother has taught me the power of belief.

She began with believing in me and teaching me to always seek excellence in everything I pursued, no matter how small or large the challenge may be.

The power of belief is a significant motivator for a person, team, or company. Leaders and employees must believe in their missions, products, and each other as it transcends into the company culture. When I started my company, I believed we would be successful and a difference-maker in the lives of others. Here we are two decades later having played an integral role in the lives of tens of thousands of mortgage professionals.

What is the most important or valuable advice that you have received since being in the mortgage industry?

Surround myself with great people who are accomplished in their field. My passion to learn from these amazing professionals shortened my time to success as I simply interviewed and emulated them. The adage, “show me your friends, and I’ll show you your future” applies at every stage of life. I was taught to always feed my mind and surround myself with great people. It is also important to avoid toxic people who will take you off course and cause you to waste time.

What contributions are you making to the future of the mortgage industry?

“Pay it forward with passion and professionalism” summarizes my service mindset. The mortgage industry has provided me with amazing, unlimited opportunities to help others succeed. XINNIX is proud to have assisted thousands of mortgage companies build new loan officers, processors, and underwriters, elevate the performance of their experienced loan officers, and impact their cultures with transformational leadership.

What significant changes would you like to see from the mortgage industry in 2023?

I would like to see a shift from casually hiring new talent to a more strategic and purposeful plan in building the future of our industry.

Bringing in the next generation must become an integral part of our industry’s future growth. Between our aging salesforce and coming off two amazing years, we are seeing many of our industry veterans retiring. The industry must commit to fully training future talent so that they are equipped for long-term success in serving the new generation of homebuyers. The old way of training casually will not sustain a company’s dominance.

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Patrick Flood

Regional Operating Partner Supreme Lending Southeast What is one of your most legendary values? Why? “Serving Others Before Self” has been the guiding principle of my life and entire career. This is our mission at Supreme Lending Southeast.

My personal mission is to leave every person I come in contact with better than I found them. I learned this transcendent lesson from my father, who is reverently referred to in our family as ”The Source.” The Source faced tragedy as a young father when he lost his son (my brother) due to illness and his wife (my mother) as she left our family at a young age.

At that time, he intentionally made the choice to serve my brothers and me at home. He also served his community and workplace, and has lived a life full of service in every way. He has been my example and has taught me what leading with a heart of service truly means.

What is the most important or valuable advice that you have received since being in the mortgage industry?

The most valuable advice that I’ve ever received has come as a result of the time that I have invested reading my favorite book - The Bible. I read it daily, front to back every year, and it is the single source that has informed me about how to love and invest in others. I often tell people that focusing on being your best in relationships is the most important part of our lives, and I strive to live this out at home, in the workplace, and with every person I interact with in my life.

What contributions are you making to the future of the mortgage industry?

Our Supreme Best University continues to create a legacy of career building. We hire, train, and develop all of our own associates, who are typically young professionals with no experience in the mortgage industry. We are currently focused on growing the next generation of mortgage banking professionals who will set the standard for exceptional customer service and the highest productivity in the industry.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The industry is facing a substantial downturn in business opportunity as a result of a historically low interest rate market which drove a historically high opportunity for refinances. This decline will no doubt impact every business in our industry.

Historically and intentionally, we have focused all of our investment in advertising and purchasing expertise with the Realtor community, which has to a great extent, insulated us from the downturn that has taken place and will continue to take place in the near future.

Separately, we recognize in the last several years, Americans have faced a considerable amount of stress, worry, and anxiety. This is no different for Supreme Southeast associates.

In response to these conditions, we have retained a certified counselor, Dr. Andy Ward, to support our associates in difficult times and help them continue on their journey to best.

Harry J. Glanz

Scott Gordon

SVP Area Manager Fairway Independent Mortgage Corporation DBA Capital Mortgage Funding

What is one of your most legendary values? Why? The golden rule and servant leadership.

Treat people like you would want to be treated. We are in the client service business; this will never change. Every situation is specific to that client or family that we are serving. Those needs demand that we focus only on them and give our undivided attention every time as best as we can. They will always remember how we treated them and how we made them feel. The same principles apply to our team. We have great teammates both locally in Michigan and nationally, everyone plays a part in our success. Put yourself in someone else’s shoes and ask yourself how they want to be treated, the answer is usually with respect and fairness.

Which of your qualities do you think most contributed to your success?

Stay focused, keep your head down and work hard. Focus on the positive and don’t let negative influences creep into your life.

What is the most important or valuable advice that you have received since being in the mortgage industry?

“Fix the problem, not the blame.” Challenges will always be present in our industry, how we react is the key. People often look to blame rather than solve the issue at hand. I have never been interested in playing a figure of someone, I would rather find a collaborative solution that works for everyone.

What contributions are you making to the future of the mortgage industry?

Hiring, training and educating the next generation of mortgage bankers. Very important to be active in our local community and the National Mortgage Bankers Association.

What are the main problems the industry is facing today and what have you done to address or resolve them?

After a record setting 2020 and 2021, the market is experiencing a monumental shift and increase in mortgage rates and the declination of revenue. Taking the necessary steps to accommodate proper staffing levels and the balancing of fixed costs will continue to shape 2022. Been through this before and things will stabilize.

What significant changes would you like to see from the mortgage industry in 2023?

I would like to see the industry change their outlook and economic forecast, obviously for the better, lol. More participation and advocacy from the Mortgage Bankers Association lobbyist with regards to how independent mortgage banks are treated in the industry.

And here’s what Harry’s nominator had to say: Before the pandemic, working remotely was normal for our team, Mr. Glanz recognized early that a work life balance. Was key to keeping a great team and working from home helped Mom’s and Dad’s attend their children’s school events and stay more involved.

Founder and CEO Open Mortgage

What is one of your most legendary values? Why? I don’t think it’s legendary, but I do care more about people than profits, and it’s the people who enable the profits.

Focusing on the people enables a strong team that delivers a great experience and profit. Focusing on profit sometimes disables your people and ruins your shot at profit.

Which of your qualities do you think most contributed to your success?

It helps that I am able to face the truth of hard situations without losing hope for the future. You have to accept the brutal truth fully without losing hope so you can deal with it and move forward. There is always a path if you don’t lose hope.

What is the most important or valuable advice that you have received since being in the mortgage industry?

It’s crazy to be in the mortgage industry. Which is to say, this industry has crazy ups and downs. You need to be planning years ahead. You can’t be surprised when everything changes, like it just did.

What contributions are you making to the future of the mortgage industry?

I doubt I’m affecting the future of the industry, but I will defend my belief that we have to look out for our employees. Our hybrid of high tech and high touch relies on great people. And if we can’t help our employees and our customers move their lives forward to a better place, why are we in business? It can’t just be about profit. I’m happy if I can rub that off onto other companies.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The biggest problem right now is fast change. Our financial systems need stability; fast change wrecks everyone’s margins for a while. The only solution is to react fast and be patient as you live through it. It always passes. I also find that these times of chaos give us opportunities to upgrade our staff and grow. There is usually opportunity in chaos.

What significant changes would you like to see from the mortgage industry in 2023?

I’m excited about new technologies that simplify the lending process and empower humans. We’ll see more of that soon. It will be 2023 before the industry shakes the hangover left over from being refi obsessed, but that will happen. Some companies will be gone, but 2023 will be a time for the survivors to settle into a new groove and a better way of operating. I look forward to it.

What his nominator had to say: Scott is a serial entrepreneur with an education in software engineering and an interest in start-ups and business investing, which has led him to successfully create an environment promoting personal growth, development and an entrepreneurial spirit among his employees. Throughout his more than 20 years in the mortgage industry, Scott continues to find innovative ways to grow business in this ever-changing environment and ensure his team is successful.

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Pam Hildebrand

Real Estate Loan Officer Credit Union of America What Pam’s nominator had to say about her: What significant contributions has your nominee made to the mortgage industry?

Pam started her career as a processor immediately out of Fort Hays State University. She has processed, managed, and originated mortgage loans for over 30 years. She has served on several committees with Realtors of South Central Kansas. She has trained and mentored many successful lenders in our market as well as all new originators at Credit Union of America.

With the introduction of TRID, Pam was invited by the largest title company in Kanas to train title agents and realtors on the new regulation. Due to Pam’s expertise, she is often called upon to train and mentor members of the industry.

What makes your nominee a legend?

• Pam is the number two lender in the Wichita metro. In 2021 she originated 302 loans helping homebuyers achieve their dreams and financial goals.

• Pam is the mother of two children and two rescue dogs. She’s active in the Leukemia & Lymphoma Society (LLS). Her teenage son was named LLS Kid of the Year during his treatment. Pam tended to Jacob’s three-year journey and volunteered, all while making her borrowers’ needs a priority.

• Pam is always accessible to her borrowers, Realtors, title companies, and coworkers. Weekends are always a part of Pam’s work week. She’s known to meet borrowers outside of work hours for signatures and meet them where they want to do business. Although frequently recruited, Pam has been with CUA for 13 years! Her borrowers and Realtors are important to her, and they know this.

Bill Hillestad CEO Add Traffic, LLC

What is one of your most legendary values? Why? Everyday, when you go to bed, you either leave the world a better place or a worse one. Make sure it’s the former. It’s simple and applies to every life you touch and every thing you do.

Which of your qualities do you think most contributed to your success?

I’m far too insecure to function on a level playing field so I never give up until I have an unfair competitive advantage. I know it’s there and will not give up until I find it, regardless of the situation or scenario.

What is the most important or valuable advice that you have recieved since being in the mortgage industry?

Don’t give originators tools that can help them succeed, you have to automate things to the point that they are forced into activities that drive their success. Give them what they need instead of what they want.

What contributions are you making to the future of the mortgage industry?

In a digital age that is trying to play down personal connections, relationships and individual brands, I am using technology to expand the originator’s personal sphere of influence far beyond what they could ever have imagined before. My originators will never need to fear being replaced by technology.

What are the main problems the industry is facing today and what have you done to address or resolve them?

At the origination level, success is too often based solely on salesmanship or ad budgets, instead of one’s ability to deliver the best service and most value to the client. My approaches to marketing allow the service minded professional to generate as much business as they can handle, in spite of not being great at sales and marketing.

What significant changes would you like to see from the mortgage industry in 2023?

The recognition that regulatory attempts to protect the consumer often do more harm than good by doing things like driving up complexity and costs which the consumer ultimately has to shoulder. In a world of greater and greater transparency, the mortgage process is becoming ever more cloudy and confusing.

What his nominator had to say: The year is 1991 and Bill got an idea. He built a spreadsheet to calculate ROI of refi’s at various rates. He showed it to a few pals and voila, the first mortgage marketing software program “MAP” was born. Bill made it his life’s work to help loan officers. He founded a software company, a mortgage company, a marketing company, and is a mortgage consultant, coach and trainer.

Bill’s newest company, AddTraffic, automates marketing, this time through social media. Arguably, one of the greatest influencers (even before being an influencer was a thing), he has worked with thousands of LOs. And from Loan Toolbox to Mortgage Coach, Bill’s influence is in their DNA. You name any mortgage company, and Bill has likely worked with them. He’s like the secret weapon they keep in the corner and pull out when they need it.

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Tom Hughes

Dominic Iannitti

What is one of your most legendary values? Why? Integrity is of the utmost importance to me. The value of having employees, customers, and the general public know that my word is my bond is priceless to me. I want to be known for doing what I say and standing for what is right; sometimes, that means standing up for your team or a customer in certain situations. Being humble can be hard when you feel you are being pushed to your limit, but we have to remind ourselves how fortunate we are to have a career that allows us to help so many people to own their homes. Tim McGraw hit the nail on the head with the song “Humble & Kind.”

What is one of your most legendary values? Why? Passion for our products and our people.

I am extremely passionate about the software solutions we develop and the results they produce. It’s a very hands-on approach that touches every functional area at DocMagic. When you truly believe in your products, so will your people. And when they are engaged at that level, it is exuded in the service they provide. Our great products and services are driven by passionate people.

Founder/Managing Partner Bankers Mortgage Consulting LLC

Which of your qualities do you think most contributed to your success?

Work ethic. Defining “success” is a challenge in and of itself.

Some think success is obtaining wealth or fame. I came from a blue-collar background. My father was a hard worker and owned his own drilling company. I started working with him at the age of 14. I was paid a man’s wage; however, I was expected to perform better than the other employees while earning their respect. I thought my father was hard on me, but later, I realized he instilled a work ethic. That work ethic enabled me to receive my college degree in three years and later push myself to receive my officer commission in the Army.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The mortgage industry faces challenges due to economic, regulatory, and data quality issues, as well as a need for more automation. As a consultant, we try to guide operations using a true manufacturing process and the utilization of technology. I have been president of two different bank mortgage operations that offered 15-day guaranteed closings. With the help of some key team members, I am currently building and managing a mortgage operation within a community bank. I want to design the operation to be as automated and technologically savvy as possible. The next step will be to offer access to the technology, data analytics, AI, and the manufacturing process to other community banks.

What significant changes would you like to see from the mortgage industry in 2023?

Fannie Mae is predicting a recession in 2023. Zillow is predicting that home prices will increase 15 percent. This could create an economic disaster, but Fannie also indicates that a hot housing market will cushion the blow of a recession. It is time to shift gears and make the mortgage process less burdensome for the borrower; it should be more consumer-friendly and faster. We do this by better and more equitable knowledge dissemination among mortgage professionals. There are many opportunities available to today’s mortgage professionals that are underutilized. I have a quote I often use when I get a chance to speak to a group, “Strive for perfection and once we achieve it, improve it.” Time to develop a game plan for 2023!

President & CEO DocMagic, Inc.

Which of your qualities do you think most contributed to your success?

My commitment to complete customer satisfaction. Nothing is more important than a satisfied client that is excited about a product/service. This commitment is ingrained into our company culture, and we pride ourselves on leveraging every opportunity to ensure we are living up to that goal. When we create new products and services, we often engage our clients to assist us in validating proposed workflow and design decisions. This collaborative approach provides our clients with an inside look at how we prioritize features and roadmap items, and it helps us to better understand how our clients conduct their business.

What is the most important or valuable advice that you have received since being in the mortgage industry?

“Surround yourself with dedicated people.” One of my mentors just out of college advised me that in order to be successful, you should work alongside people that are dedicated to their specific roles.

I found this especially true when building a business. I founded DocMagic in 1987 and immediately recruited people who appeared to have a higher level of commitment. When you’re developing software solutions that have the potential to truly change the game, having dedicated people behind you is paramount to success.

What are the main problems the industry is facing today and what have you done to address or resolve them?

What we predominantly need is greater adoption of digital lending technologies. There are a lot of fantastic solutions, but there are also various roadblocks preventing those technologies from being implemented. Now, we’ve come a long way since 2010 when adoption of eSign technology was far less than 50%. eClosing technology has also been slowly adopted, with the pandemic certainly being an adoption catalyst. Once we have greater acceptance of eNotes stored in eVaults, we’ll be much further along in the process to achieve digital bliss. We’re always working with groups like the MBA, MISMO, the GSEs and the aggregator community to move things along. But it’s a constant work in progress that takes time to get all the necessary players on board.

What significant changes would you like to see from the mortgage industry in 2023?

We’ve made significant advances with system-to-system interoperability via accessible APIs. In order to fully connect the digital mortgage ecosystem, however, there is still more work needed to facilitate faster and more efficient integrations. The ultimate goal is to connect, collaborate and complete the lending process with elevated efficiency.

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David Lazowski

President of Retail Sales, East Fairway Independent Mortgage Corporation

What is one of your most legendary values? Why? “Seek wise counsel.” No matter where you are in your mortgage journey, or where you are in life, there will come a time where we must reach out for support. Seeking wise counsel is a core value of Fairway, but it has also become a core value in my personal life.

Which of your qualities do you think most contributed to your success?

Listening first. One of the things that I try to do is listen and understand the stakeholder’s point of view and where they are coming from. By listening, we can better understand how to solve issues and problems that arise in both our work life and family life.

What is the most important or valuable advice that you have received since being in the mortgage industry? ”Stay in your lane.” The mortgage industry has many moving pieces. We each have a role in identifying and helping our customers realize the dream of homeownership. Within this process, there are many different lanes. By being a master of your lane and understanding your place in the process, you can better serve your teammates and your customer.

What contributions are you making to the future of the mortgage industry?

The future of the mortgage industry lies in the next generation of loan officers. We are actively seeking folks that are part of that next gen. We offer a training program for those brand-new in the industry, coaching that speaks to every aspect of the mortgage journey, as well as succession planning for veterans as they move towards retirement. At Fairway, we look to make this industry sustainable and relevant by bringing the next generation of lenders.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The challenges are around a consumer that demands speed to respond and an economy that is faced with inflation and other geopolitical pressures. We have met these problems by having the right mix of technology and staff to be able to respond to the consumer quickly in their preferred communication medium.

Ensuring that we have a vast array of lending products for our consumers allows us to meet the geopolitical challenges head on.

What significant changes would you like to see from the mortgage industry in 2023?

Two things need to be addressed: find stability in the interest rate environment and allow for more products to be available to assist with closing the inequality gap for home ownership.

What his nominator had to say: David has created a leadership team that has hired and trained the next generation of loan officer – their average age is 22 years younger than average. Some joined an innovative two-year training program (created by David and his team) with no industry experience and have become leaders of their own teams within a few years.

22 MORTGAGE BANKER | MAY / JUNE 2022

Shelley Leonard President Xactus

What is one of your most legendary values? Why? The most legendary value a leader can exhibit is authenticity. I define authenticity as the absolute need to treat everyone equally regardless of their position. Every member of an organization has a role to play, and each individual deserves to be treated with respect from the CEO to the janitor. That is my guiding light in the way I help employees and serve the industry – and in doing that, I hope to consistently do what’s most important for the people I serve.

Acting with authenticity demands modeling dignity, respect and appreciation for all. It also keeps one grounded and approachable – and ensures decisions are not made solely in the company’s best interest, but also weighs how individuals will be impacted as well.

Which of your qualities do you think most contributed to your success?

My ability to confidently and effectively speak in public has significantly contributed to my success. I work hard to add value to the people I’m speaking to – by understanding the audience and what’s important to them; and speaking about concepts and issues that I really understand. To be an effective public speaker, you must properly prepare your presentation and truly listen as you deliver it in order to successfully guide the discussion as it unfolds. And I consider the prep work that is necessary for effective public speaking as part of continuous learning – something that contributes to my ongoing personal growth.

What is the most important or valuable advice that you have received since being in the mortgage industry?

Always remember the “why” – why we choose to work in the mortgage business – which is to help people buy homes and make sound financial decisions. It is important to remember that “why” – especially when the market and lending environment becomes challenging. Keeping the “why” top of mind also keeps me grounded and focused on doing the right thing.

What contributions are you making to the future of the mortgage industry?

At Xactus, my team and I are leading the charge to advance the modern mortgage. To that end, we’re focused on reimagining the ways things have always been done to develop more efficient work flows and create innovative data solutions and verification services that will enhance profitability and improve the consumer experience.

What significant changes would you like to see from the mortgage industry in 2023?

I’d like to see all areas of the industry be less reactionary. To do that, we must get better at long-range planning. With long-range plans in place, we can be better prepared for the inevitable changes and be much more nimble as innovative service providers.

I would also like to see the industry move away from being so slow to change. After all, the world around us is changing at a much faster pace. To keep up, we should look at planning in ways that allow us to pivot and adapt much more quickly and effectively.

David Luna

President Mortgage Educators and Compliance What is one of your most legendary values? Why? Being in an industry that I love for over 40 years. I value learning, growing and experience. If I stop learning I stop growing. This was a lesson I learned early on in my career and it has served me well.

Never stop learning!

Which of your qualities do you think most contributed to your success?

Learning what borrowers wanted and helping them achieve their dreams, goals and wishes. Borrowers want clear, timely information that pertains to them and their situation. Not general but specific information for them and their family. They need information to make important decisions and they needed it yesterday. I learned to listen early in my career. Borrowers want to know you are invested in their success.

What is the most important or valuable advice that you have recieved since being in the mortgage industry?

That the industry continues to change. It does not stand still from the early days of my career to today programs and guidelines continue to evolve. Always stay up on the changes.

Stay informed, increase your knowledge and be a solution provider. Care about the consumer. Be honest in all that you do.

Be the type of professional your borrowers kids come to for their mortgage because of the way you treated their parents.

What contributions are you making to the future of the mortgage industry?

We are now training the future leaders of the mortgage industry.

It starts with getting into this business. Learning to change as the industry changes and to always be ethical. We need to know what we can and cannot do. What are the areas where we can affect change? That it is more than just one that we as an industry can all accomplish more.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The main problems today are a lack of affordable housing.

We need to be more involved at the city, state and national levels. Talking to city leaders about the cost of regulations that increase the cost to builders to build an affordable house. Going to the state capital and speaking to the legislators about how we together can change what is happening in our state. And finally traveling to Washington D.C. to help legislators understand the unintended consequences of decisions made in the halls of Congress to main street America.

What significant changes would you like to see from the mortgage industry in 2023?

A level playing field for all mortgage loan originators. From brokers to bankers, non-depositories to depositories. Treat all of us the same and let the market dictate who by their knowledge, skill and work ethic wins. There needs to be more emphasis on consumers and their needs such as more programs to help very low- and low-income borrowers complete the dream of home ownership to begin the process of building generational wealth.

Marianne Mainardi Senior Vice President of Correspondent Lending Newrez LLC

What is one of your most legendary values? Why? As a leader, I have built a distinguished career – complete with a dedicated and talented team – by putting people first.

I am always willing to get my hands dirty and look at every detail when my team needs assistance, even getting down into individual loan level details when doing so supports the broader goals and objectives. I believe that as a leader, it’s important to be immersed in the work that your team is doing.

I think doing so has earned me a lot of respect from my team, allowing them to see me as both a leader and part of the team.

Which of your qualities do you think most contributed to your success?

I like to challenge the status quo to understand if there are better ways to operate. Challenging the team always leads to creative ideas and solutions. When we brainstorm, we find solutions that involve process and/or technology and when the ideas are implemented, they commonly have a service level or cost benefit. Even though this team has worked together for many years, we are constantly evolving the way we operate. Another strength I possess is the ability to stay calm no matter the environment. I have strong listening skills and I am not overly quick to make decisions, but instead I opt for fully informed decisions. On the other hand, I have found that it is important to be decisive once you have heard all points of view. I am also analytical in my decision making, which has proven to be an important quality throughout my career.

What is the most important or valuable advice that you have received since being in the mortgage industry?

When I was being mentored early in my career, I was advised to never turn down an opportunity to learn something. Even if it may seem at first glance like you are taking a step down in your career, or a lateral change, it is often worth it if the position allows you to learn, understand and grow. I spent the first half of my career in finance, until I took a leap to a mortgage operational position that presented itself to me. It wasn’t a promotion at the time but put me on the path I walk today. This change took me out of my comfort zone, but ultimately it was the best move I ever made because it allowed me to grow and broaden my knowledge in ways that I wouldn’t have been able to otherwise.

What significant changes would you like to see from the mortgage industry in 2023?

I would like to see a faster adoption of E-closings. E-closings facilitate the borrower, help attract and maintain the next generation of homebuyers, and eliminate data inconsistencies caused by re-keying. In the end, the borrower will have an enhanced upfront experience and also a better servicing experience due to the quality of the data.

MORTGAGE BANKER | MAY / JUNE 2022 23

Bruno Pasceri

Mark Reeve

What is one of your most legendary values? Why? Empathy for our borrowers, partners and employees is critical for mortgage industry leaders. We not only need to stand in their shoes, we need to internalize the mission of home ownership for all. If we can truly feel borrowers’ yearning for that opportunity, we’ll help to make it happen.

What is one of your most legendary values? Why? Caring deeply about reverse mortgages and what they have done and continue to do to enhance seniors’ lives by providing home and financial stability. Being part of a financial solution that has such a tremendous impact on borrowers and their families is truly a humbling

President Incenter LLC

What is the most important or valuable advice that you have received since being in the mortgage industry?

An early mentor taught me the importance of patience, listening and respect. When I was new to the industry, he felt that internalizing these qualities would be crucial for me. I am so grateful that he cared enough to help me become a better leader and person.

What contributions are you making to the future of the mortgage industry?

I enjoy mentoring new generations of mortgage professionals.

It’s very satisfying teaching them the nuances of the mortgage industry. That includes balancing automation with the empathetic, in-person interaction that keeps borrowers loyal. Technology solutions can never replace people in the mortgage business.

They are wonderful for streamlining processes, but borrowers appreciate handholding and guidance at least as much as speed.

What are the main problems the industry is facing today and what have you done to address or resolve them?

Mortgage bankers must reorganize their costs in line with reductions in volumes. They should be spending on new areas of opportunity, such as home equity loans. Streamlining mortgage processes and improving service are also critical, and Incenter’s solutions are helping here. This is a time for the industry to remember who our true customers are. They are not our borrowers, but rather the Realtors, builders and others who refer us to them. From customer appreciation months to monthly visits with regional managers, we need to make relationship building on behalf of our banks a consistent part of our workflow. These partners need to experience the caring of our whole institution, and not just individual loan officers. Incenter is also working on new solutions to help mortgage bankers improve loyalty and stickiness by taking care of their customers.

What significant changes would you like to see from the mortgage industry in 2023?

Mortgage banks should go back to basics–keeping their heads down, doing their best work, and serving their customers better than the competition. This is a wake-up call to renew or strengthen relationships with their referral partners. These partners know who genuinely care about supporting them, and who falls off the radar when times are good. Streamlining processes and reducing “luxury expenses” will go a long way toward buttressing companies’ financial performance.

Finally, the industry needs to make a concerted effort to bring in new generations of loan officers. The typical loan officer is approaching 60 and a wave of retirements is on the way. College students don’t typically train for this kind of career, so we need to go into their schools and talk about its many rewards. I am doing this myself and it keeps me energized about the future.

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VP Reverse Mortgages Plaza Home Mortgage

experience.

Which of your qualities do you think most contributed to your success?

Hard work! I always believed in reverse mortgages but you don’t really appreciate the value of what we do until a family member gets one and you see up close what the power of this loan can do for seniors and loved ones. At a time when the traditional lending industry shied away from reverse mortgages, I realized early on that much of the stigma surrounding reverse mortgages was the result of a lack of understanding as to how the program really works, and that the unfair perception of the program was primarily due to poor information, ignorance and fear. Armed with this knowledge, I set out to change this perception by using facts and information as weapons in this debate.

What contributions are you making to the future of the mortgage industry?

Everyday I’m in the marketplace sharing information with mortgage brokers and other influencers in the reverse mortgage ecosystem: for example, financial planners, accountants and lawyers. On a personal level, I always try to do the right thing for our clients and their customers: Keeping an eye on the borrowers and making sure the loans being processed are within the spirit of the guidelines. The last thing you want to do is to put a borrower or the program at risk.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The rising rate environment is having a direct impact on reverse lending, as well as forward lending. When volumes come down, it’s not uncommon for originators to “push” on guidelines and exceptions. At times, these interactions can be stressful, and the impact on families can even be emotional. To prepare for these “tougher” loans, it’s essential to communicate and set proper expectations as early in the loan process as possible. Nobody likes bad news, but we all know we have to deal with adversity on a daily basis.

What significant changes would you like to see from the mortgage industry in 2023?

The FHA should “clean up” some of the reverse-purchase guidelines to better align them with forward FHA loans. This would help the purchase of a reverse product on many levels.

Also, reverse mortgages have never been more accepted by the entire mortgage industry than they are today. I would like to see our “forward” originators continue to embrace these loans and become ambassadors of this vital program for our aging population. Ultimately, I would like the financial planning community to understand this financial tool, not only as a source of immediate cash flow relief, but as an essential part of an overall financial retirement plan.

Curtis Richins

President Mortgage Capital Trading What is one of your most legendary values? Why? This isn’t really a question for the humble, though I see myself not as a know-it-all, but a learn-it-all. Call it a modesty to build consensus. I am constantly seeking input and advice from the people around me to gather all the facts before coming to a decision. I value a team-orientated approach rather than an individual one when it comes to matters both at work and in my personal life. I respect people that operate in my orbit and all voices count. In my book, it’s better to over communicate with the people around me. Having only one decision-maker puts a strain on the business when there are so many great ideas to be heard before coming to a final decision. I am always open to all ideas that will further push MCT forward.

Which of your qualities do you think most contributed to your success?

Building consensus is what I am constantly striving for, since I have surrounded myself with knowledgeable colleagues. This is what makes us successful in the grand scheme of things. I prefer a participative management style, wherein the process, you build up consensus and this makes the group stronger.

What are the main problems the industry is facing today and what have you done to address or resolve them?

Liquidity is an essential component of well-functioning capital markets. Periodically, the secondary mortgage markets will experience bouts of illiquidity and price dislocation which can have a dramatic and negative impact on market participants.

Such was the case with the onset of the pandemic in March 2020. Clouded by uncertainty as the pandemic panic grew, many whole loan investors abruptly vacated the market for buying whole loans, stranding sellers with limited or no outlets for their funded loan collateral. In response to this market dislocation, MCT created a digital whole loan marketplace to connect buyer and seller regardless of approval status, creating an important new pool of available liquidity for sellers. Out of the crisis, BAM Marketplace was born and has now become the largest digital whole loan marketplace with more than $1 billion in whole loans auctioned on the platform daily. MCT significantly increased the market liquidity for whole loans.

What significant changes would you like to see from the mortgage industry in 2023?

The mortgage industry continues to make huge strides in automating and digitizing all aspects of the mortgage value change – home search, origination, underwriting, etc. through loan sales and securitization, and servicing. However, the secondary market has migrated more slowly. In particular, the securities used most widely to hedge mortgage interest rates, the TBA MBS (to-be-announced mortgage-backed securities) is still most frequently traded over the phone. A new fin-tech, Agile Trading Technologies, has created an electronic trading platform that digitizes the TBA bidding process between mortgage and lenders and regional broker dealers. Agile’s goal is to migrate the market for TBAs off the telephone.

Cynthia Rock

Producing Branch Manager NRL Mortgage What is one of your most legendary values? Why? My most legendary value is a commitment to excellence. It is important to me that we do things the right way. I work hard to perform at a high level, and I look for the same drive in my team.

Which of your qualities do you think most contributed to your success?

My ability and willingness to change has helped me remain successful. I have seen many people and companies in the mortgage business struggle with new rules, updated technologies and changing markets. I have always challenged myself to embrace change rather than fight it. I am not stressed about new forms or guidelines - we adapt quickly. I am always curious about the latest tech tools, and I believe there is opportunity is every market.

What is the most important or valuable advice that you have recieved since being in the mortgage industry?

The most important advice I have received since being in the mortgage industry is the idea that we can be collaborative and generous even in a competitive marketplace. There is enough business available for all who work hard and smart.

Once I stopped worrying about my competition and decided to compete with myself, I was able to be more open-minded and much less negative and fearful. I enjoy work so much more now that I see my colleagues as inspiration rather than enemies.

What contributions are you making to the future of the mortgage industry?

My main contribution is a commitment to mentorship. This has become a great career for me, but I faced many challenges and obstacles. Today, I am able to clear the path for new people entering the field - especially younger women. Since I did not have strong mentors, I am motivated to give back to this industry by helping others who are just beginning to build their career.

What are the main problems the industry is facing today and what have you done to address or resolve them?

One of the main problems facing our industry today is the low numbers of young people entering the business. We need new ideas and new ways to meet the needs of younger buyers who make up the largest sector of potential homeowners.

I have purposefully recruited and hired ”millennials.” I enjoy offering them an opportunity to develop a rewarding career in the mortgage business and they bring a perspective that strengthens our team.

What significant changes would you like to see from the mortgage industry in 2023?

Technology will continue to drive improvements in operations and customer service, and these are important to a healthy mortgage company. However, the industry as a whole would greatly benefit from a more data-driven approach to appraisals.

This process is still too manual and subjective. It is a significant cost to buyers and a source of delays to the process. I am pleased to see that a more common sense and technological approach to such a significant pillar of the field is gaining traction.

MORTGAGE BANKER | MAY / JUNE 2022 25

Kelly Rogers

Regional Sales Director Movement Mortgage What Kelly’s nominator had to say.

What significant contributions has your nominee made to the mortgage industry?

As a regional sales director, Kelly Rogers is intently passionate about serving mortgage professionals across the country.

Her first steps into the industry were in 1995 as a young single mother. Her love for her family and mission to serve others, fueled a tenacity to conquer adversity that transformed her from unemployed, to a top originator in the country, to now serving as regional director for a Top 10 mortgage company. She built her business and brand organically, while balancing work and family with unmatched poise.

She is intent on empowering others to do the same. At Movement Kelly has ignited a vision that is now followed by thousands across the country--- a culture of collaboration where strategies to success and significance are shared. Her blogs, posts, and speaking engagements are inspiring, drawing from over 25 years of building relationships and gaining trust with real estate agents and clients.

What makes your nominee a legend?

Kelly is driven 100% by her commitment to help mortgage professionals realize their future is limited only by their will to succeed. She has earned numerous national Top Originator recognitions within Movement, as well as in our industry.

As a top loan officer, Kelly led a team serving 600 families a year, while also recruiting, and coaching others. She has been recognized as an Elite Woman in Mortgage and Most Connected Mortgage Professional. In 2011, she co-founded a communitybased organization for professional women focused on building relationships, creating awareness and fostering community, whose blueprint has been followed by countless others. She has also served on the Board of Directors of various charities, in addition to serving locally and nationally.

Cindy Sheldon

VP/Region Manager DHI Mortgage What is one of your most legendary values? Why? Legendary is defined as “remarkable enough to be famous or very well known, usually because of a distinctive or unique characteristic or skill.” With this definition in mind, my most legendary value is mentorship/leadership development.

I find great joy and personal fulfillment in developing new relationships and exploring ways to learn from one another in life, but especially in my career. I credit a lot of my career success to impactful career relationships and building friendships that persist for a lifetime I am humbled, grateful, and honored when someone trusts me enough to seek my advice or guidance. I take that responsibility very seriously, and I see mentorship as a mutually beneficial exchange. Most times, I leave mentorships as a much better person.

Which of your qualities do you think most contributed to your success?

One of my favorite quotes is by Helen Keller, “A bend in the road is not the end of the road…unless you fail to make the turn.” This quote embodies what has contributed the most to my success; I make every effort to remain nimble while simultaneously committed to process. I believe processes and routines lead to quality and excellent customer experience. At the same time, the ability to quickly shift gears when faced with complexities or challenges further supports the customer experience and adds efficiencies to the process. The mortgage business has realized significant changes in the past 15 years. I would consider 2008 through today to be the largest bend in the road an entire industry ever faced. Committed to process and being nimble during this time was difficult, but making the turn was worth it, and I am better for it.

What contributions are you making to the future of the mortgage industry?

My contributions to the future begin with recruiting and hiring a diverse team that best represents our customers. I am focusing on intentional and deliberate daily goals that introduce the mortgage industry as an outstanding career option. Strategies I use include targeted college recruitment, career fair presentations, and sharing my career story. Identifying and hiring the best talent, paired with my company’s robust training plan, is creating a pipeline of mortgage professionals to carry our industry forward.

What are the main problems the industry is facing today and what have you done to address or resolve them?

The main problems are the barriers to homeownership created by increasing home prices associated with national, state, and local regulations and increased fees. Homeownership is considered one of the main pillars of the American Dream. I advocate through the national, state, and local home builders associations to address the increasing home prices, specifically related to regulations increasing the costs of new homes (i.e.: impact fees that address a broad community issue, like crowded schools). I understand that every fee added to the costs of a new home negatively impacts housing affordability. In my position as chairperson of the North Carolina Home Builders Association Legislative Committee for 2022, I relentlessly advocate against barriers that stand in the way of homeownership.

26 MORTGAGE BANKER | MAY / JUNE 2022

Christopher A Stanton Senior Vice President MLB Residential Lending LLC

What is one of your most legendary values? Why? Treat every client as if they are the only one you have. It’s about the relationship not the transaction. These values have enabled me to be a super servant and help my clients make the decision that is best for them.

Which of your qualities do you think most contributed to your success?

My willingness to do the hard work to be successful. I don’t need to always know how, I just need to know who. Surrounding myself with good people.

What is the most important or valuable advice that you have received since being in the mortgage industry?

The most important advice that I have received in my 38-year career is to continue to learn, continue to do deep Private Work, and put myself out of my comfort zone.

What contributions are you making to the future of the mortgage industry?

My most important contribution that I can make to the future of the mortgage industry is to teach and coach loan officers and branch managers on how to have a business of significance.

What are the main problems the industry is facing today and what have you done to address or resolve them?

One of the main problems that I see facing the mortgage industry today is lack of preparation and education and a system on the loan officers’ part to address today’s market. I have provided coaching and training to help the loan officers develop the beliefs, tools, systems and skills to be successful in a changing market.

What significant changes would you like to see from the mortgage industry in 2023?

Changes in the ATR/QM rules would be a welcome change.

It would allow a greater number of people to become homeowners if the rule was relaxed.

What his nominator had to say: Chris believes in teaching MLOs how to give to the community first and then potentially earn additional business. This is part of this long successful business sales strategy. Chris is an amazing sales leader as well as a corporate executive. In just three short years, Chris has taken a 250M a year small bank to a 600M a year company in retail division, taking MLOs that do 1-2 originations monthly to 4-6 monthly, changing their lives from (1) survival, to (2) stability to (3) success, then to (4) significance.

Chris is one of the most consistent and significant mortgage professionals I have the pleasure of knowing.

Chris has a super work ethic and has over 35 years of doing the right thing instilled in him. Chris is known for not judging others but having genuine concern. Chris is always learning, self improving himself and sharing with others. Chris is smart and accomplished without hubris. Chris is a special man.

Chris epitomizes a well balanced and well adjusted mortgage originating professional with a clear level of approachability.

Cory Swain

CEO/ President Premier Mortgage Resources What is one of your most legendary values? Why? Integrity is a legendary value that I strive to live up daily. Leaders with integrity value people at their core. They recognize that everyone offers a unique perspective that can improve work environments and promote efficiency. Integrity promotes honesty, drive, and ambition while holding the uncompromising belief that we are accountable for our actions. Integrity and ethics are the foundation and support that has built Premier Mortgage Resources into the company it is today. Morality, ethics, transparency, and strong principles set our foundation.

Which of your qualities do you think most contributed to your success?

My work ethic contributed to the success of Premier Mortgage Resources. This work ethic is something that I inherited from my parents, who always promoted it while I was growing up. My wife and partner, Mandi Feely-Swain, also encourages me daily when things get hard to keep going. Without her, I would not be where I am today.

What is the most important or valuable advice that you have recieved since being in the mortgage industry?

I was fortunate enough to be mentored by many in the industry with a lot of experience and wisdom. The advice that stuck with me though was, ”Don’t quit. Stay with it, build relationships and always be willing to adjust your plan to meet your goals. Besides that, show up every day and work hard! No one will give it to you.”

What contributions are you making to the future of the mortgage industry?

I’m turning ownership of my own company back to the people who work behind the scenes so that they benefit from the profitability. Many times, mortgage companies are perceived as profit driven. By changing the ownership to an employeeowned company, I’m hoping to slowly change that perception and encourage other companies to do the same. I believe that homeownership should be a right that is attainable to all Americans. Too many are being priced out or are unable to obtain financing for their home. I work with my team every day to focus on that group of individuals, find products that work for them, and service our loans in house to make sure they get the customer service that they deserve.

What are the main problems the industry is facing today and what have you done to address or resolve them?

There is a huge disproportionate gap of those able to afford a home in the US and those who are not. We must find a way to change that. Additionally, racism is still prevalent and exists in the housing market. A recent statistic from CNN said that Black homeownership is now lower than it was a decade ago.

We’re moving backward, not forward. Housing affordability and low inventory make it challenging for both groups to enter into homeownership. Personally, I’ve driven our company to add many products that fit the needs of every American, regardless of their financial position. I’ve also implemented down payment assistance programs to help bridge the financial gap.

MORTGAGE BANKER | MAY / JUNE 2022 27

Louise G. Thaxton

CEO of American Warrior Initiative / Branch Manager with FIMC Fairway Independent Mortgage Corp What is one of your most legendary values? Why? Having the opportunity to serve those who serve, the men and women of the United States military, has been one of the biggest joys of my life and career. Whether it was through helping a veteran finance a home, giving assistance to veterans and active duty military through the American Warrior Initiative nonprofit of Fairway of which I am the CEO, or bringing awareness of the military civilian divide and helping to bridge that gap, through the education and training we have provided to over 30,000 real estate and mortgage professionals - all of these have helped me to realize the more one gives back to others, the more satisfaction you will feel and a certainty that you are accomplishing your purpose in life.

Which of your qualities do you think most contributed to your success?

Passion and getting fired up over a cause. Any success I have achieved is mostly due to having an amazing company that listened to my passionate pleas for us as Americans to become involved in helping and giving back. They have supported my mission for the past decade to give back to the men and women who serve this country. Without the support of the leadership of Fairway, I would never have been able to accomplish this.

What contributions are you making to the future of the mortgage industry?

Bringing awareness to the challenges facing this nation’s veterans in purchasing and financing a home.

What is the most important or valuable advice that you have received since being in the mortgage industry?

Find your passion and follow your heart.

What are the main problems the industry is facing today and what have you done to address or resolve them?

Challenges for veterans and active duty military being able to have a purchase contract accepted and purchase the home of their dreams. The very ones who have fought for our freedom are being denied the simple right to own the home they want and the home they qualify to purchase. Today, it is harder than ever for a veteran or active duty military client to get an offer accepted.

This is not right. I believe it is immoral, if not illegal. Their rights are being violated even though they are ”protected” under the ”GI Bill of Rights” just by the type of financing they need - 100% VA Loan financing. Over the past several years, I have spoken to over 30,000 real estate and mortgage professionals on these challenges encouraging all to do whatever they can to educate sellers on the truth about VA loans.

What significant changes would you like to see from the mortgage industry in 2023?

For it to become illegal to discriminate against a veteran or active duty military client for their method of financing - VA loan financing.

Only when it becomes a law that it is illegal to discriminate against the men and women who serve this country, will the discrimination stop. Until then, sellers and real estate agents will continue their discriminatory practices which keep our servicemembers from homeownership.

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Angie Turley

Branch Sales Manager Team Turley with Fairway Independent Mortgage Corporation What is one of your most legendary values? Why? Community service - we love to serve within our community and give back, we want to live in a community we love to be in.

Which of your qualities do you think most contributed to your success?

Giving - I love to give back and try to volunteer not only my time but give donations as well to multiple organizations.

What is the most important or valuable advice that you have received since being in the mortgage industry?

Pivot - this market is ever changing, and you have to be ready to pivot at any time.

What contributions are you making to the future of the mortgage industry?

Hiring my daughter to take over the legacy of Team Turley and educating her generation on finances.

What are the main problems the industry is facing today and what have you done to address or resolve them?

Raising rates and low inventory - again, pivoting, and explaining that the rates are still low, and we will refinance them eventually - back to educating them :) What significant changes would you like to see from the mortgage industry in 2023?

More first time homebuyers being able to buy and knocking out some investors that come in and buy multiple properties ruining first time homebuyer chances of ever owning a home.

What her nominator had to say: Angie is extremely involved in all aspects of the industry and her community. She serves on multiple local real estate association boards and community associations. Giving back is a way of life for her and her team. Helping local heroes is her passion.

She was #3 in the country for Homes for Heroes helping 162 heroes to purchase homes in 2021. But she doesn’t stop there, she donates with every closing and volunteers for our local association to help the homeless, she sponsors and attends multiple golf outings each year to benefit heroes and raise money for those in need, she volunteers monthly at our local food back, and so much more! She is a shining example that our industry is ”more than mortgages” #giversgain Angie has been involved in our local real estate and mortgage industry, since she was 14. She started as a receptionist at a real estate office before moving over to the lending side.

She worked her way up through nearly every position in the mortgage industry and she is now a branch sales manager and one of the top producers in Indiana. She has grown into an amazing leader, growing her personal team from two people to 10. She is a coach in our Ignite Coaching Company and a mentor to all in our company. She will help share her knowledge and help anyone in our industry grow - regardless of affiliation. She is a local legend in Central Indiana - Everyone knows her in our local market!

Bob Walters

CEO Rocket Mortgage

What Bob’s nominator had to say What significant contributions has your nominee made to the mortgage industry?

Bob Walters is CEO of Rocket Mortgage, the nation’s largest mortgage lender. In this position, he is responsible for the vision, strategy and the day-to-day operation of Rocket Mortgage. Bob is also president and chief operating officer of Rocket Companies (NYSE: RKT).

Previously, Bob served as president and chief operating officer of Rocket Mortgage, overseeing the mortgage servicing, client experience operations, capital markets and technology teams. Prior to holding his position as president, he was chief economist and executive vice president supervising the capital markets and servicing operations at Rocket Mortgage – growing the servicing business from startup to its current position as the fifth largest servicer in the country. He has also been instrumental in directing the teams that manage interest rate risk management, trading and product development.

Bob earned a bachelor’s degree in Finance from Oakland University and an M.B.A. from the University of Michigan.

MORTGAGE BANKER | MAY / JUNE 2022 29

And … Action!

M

ortgage News Network’s mission is to use the power of video and podcasts to compliment the written word and inform, educate, enable and empower mortgage professionals with the most relevant, up-to-date information and advances in the mortgage industry.

It is our goal to offer worthwhile information to our viewers while delivering it with the utmost professionalism.

Every weekday, we give you a heads up of what should be of interest to you now. The action is fast, and the information is up-to-date. Give us two minutes, and The Interest will give you the big picture.

Watch at: nationalmortgageprofessional.com/video Great conversations start with great stories. Tune into The Principal podcast daily for your deep dive into the big issue of the day. Editors, reporters, and sources involved in the day’s top news take on topics with vigor and valor, unafraid to speak openly and honestly, so you get the truth about what’s changing the mortgage market. You’ll get an excellent payback for your time when you listen to The Principal.

Listen at: nationalmortgageprofessional.com/ podcasts/principal Picture your dream home. Now look down. There’s a bright red line keeping you out. Join host Katie Jensen as we dive into redlining and the legacy of discrimination. You’ll hear first-hand accounts from those who’ve had to fight back to achieve their dreams. And we’ll challenge industry leaders on how to rewrite this legacy.

Listen at: nationalmortgageprofessional.com/ podcasts/gated-communities

30 MORTGAGE BANKER | MAY / JUNE 2022

MORTGAGENEWSNETWORK.COM PRODUCT IONS OF A ME RICA N BUS INE S S ME DIA MORTGAGE BANKER | MAY / JUNE 2022 31

T E C H NO LO GY

New Fights Old ACTIVE PUSH FOR HIGH-TECH MORTGAGES GETS PUSHBACK FROM CONSUMERS

E

By ST EVE G O O D E, STA F F W RIT E R, MO RTGAGE BAN KER MAGAZ IN E

merging technology is a common buzzword that promises (and appears to be delivering) advancements in the myriad processes of the mortgage industry. Yet, consumers are craving the human touch.

What’s the right balance? Tech wants more tech. People want more people. The Mortgage Cooperative is working to solve that emotional equation.

STRENGTH IN NUMBERS

Time is money as they say, and these advances, lenders say, are saving both. They could also level the playing field between big brokerage firms and smaller to mid size operations.

That’s the driving force behind The Mortgage Collaborative’s creation of the Emerging Technology Fund.

Rich Swerbinsky, the collaborative’s chief operating officer, said that the idea for the fund came up during a conference roundtable in 2019, when talk turned to concerns among the 90 to 100 lenders that larger mortgage firms would corner the market on emerging technologies and in turn, prospective borrowers.

“We had 90 lenders in the room asking why don’t we do something about this?” he said.

“There were costs associated with the launch but we felt it was for our best interest.”

Swerbinsky said the fund started with 12 member companies and is now up to about two dozen who are part of the Emerging Technology Fund, which was launched in November 2020 after a six-month delay due to the pandemic. Then organizers realized it was even more viable because lenders were swamped with buyers and emerging technology was needed to reduce the pressure.

32 MORTGAGE BANKER | MAY / JUNE 2022

Swerbinsky declined to say what the level of investment has been from members of the collaborative, who he said are pledge donors and not required to contribute. The collaborative itself has 270 members. It added 52 more last year and about a dozen so far this year, with 60% in the mortgage industry and 40% depository business..

Those who do invest in the fund are given access to the inner workings of emerging technology efforts, giving them an insider’s advantage over those who don’t, he said.

None of the original investors have left the fund, Swerbinsky said.

“Our limited partners feel good about their investment,” he said.

The company is managed by founding member John Robbins, CMB; David Kittle, CMB; Gary Acosta, CEO of the National Association of Hispanic Real Estate Professionals; and Jim Park, former chairman of the Asian Real Estate Association of America. Robbins and Kittle are also former chairmen of the Mortgage Bankers Association of America.

As for the Emerging Technologies Fund, so far the collaborative has awarded funding to Capacity, Clever, Home Lending Pal and Maxwell. Swerbinsky said a fifth fintech company will receive funding soon, but declined to name it.

Swerbinsky said the work that the funded

Rich Swerbinsky

David Karandish

THE ORIGINS

The collaborative was founded in 2013 in San Diego, California. Its mission is to empower mortgage lenders with better financial execution, reduced costs, enhanced expertise and improved compliance, as well as helping its members access the changing consumer base in the U.S.

companies are doing aren’t necessarily new technologies, but better approaches to ones that are already in place. “They are different types of technology investments, but the general theme is automation, with balance,” he said.

Asked if the goal was speed or service to the customer, Swerbinsky said, “It’s about

both. It’s also about accuracy. The vast majority of the information needed is digital data.”

He also noted that when the fund first launched they were seeking out fintech companies to gauge their interest in participating in the fund. But that has changed. The companies are now coming to the collaborative because they realize that the limited partners can advise them on the types of emerging technology that they need or want.

David Karandish, CEO of Capacity, an artificial intelligence platform that automates support for borrowers, loan officers and support staff, said that working with the collaborative and the tech fund has been a “fantastic experience.”

“First it gives us access to industry leaders who are helping to shape our product roadmap. The evolution of our platform over the last 12 months has had a lot to do with the conversations we’ve had across the [The Mortgage Collaborative] ecosystem,” Karandish said. “Second, it has validated our value proposition to the industry.”

Karandish also agreed with Swerbinsky’s view that his company has been able to use the relationship with the collaborative to learn from its clients.

John Paasonen “We recently returned from the TMC member conference where we had the opportunity to interact directly with members about the business problems they need to solve in 2022 and beyond,” he said.

“That direct feedback is incredibly valuable as we seek out ways to better serve our clients.”

“MOST CEOs VIEW TECH IN MANUFACTURING MORTGAGES AS QUICKER AND MORE EFFICIENT, BUT AT THE END OF THE DAY IT’S STILL A HUMAN BUSINESS.” John Paasonen, co-founder and CEO of Maxwell, a fintech platform that aims to modernize the mortgage process and is dedicated to helping lenders closing sales “faster and happier,” said his company has been working with the collaborative’s members for about 4 years and that there’s a common theme to what they are looking for.

“They’re excited about speed,” Paasonen said, adding that it’s helpful to have a large number of experienced lenders at the company’s fingertips.

“It gives my team access to their great feedback,” he said.

NOT SO FAST

The balance Swerbinsky alluded to was the amount of face-to-face interaction in the process. Some fintech companies say their products offer younger buyers what they

Mike Seminari want: online and fast. But some surveys show that people want more personal contact when making what is often the biggest purchase of their lives.

A J.D. Power survey featured in a National Mortgage Professional magazine column written by Lew Sichelman showed that lenders’ efforts to streamline workflow into a

one-size-fits-all has eroded customer satisfaction.

Jim Houston, the company’s managing director of of consumer lending and automotive finance intelligence, said in the column that even though the industry had been working for years to create an effective and efficient origination process primarily through digitization and implementation of self-help books, the recent massive surge in volume exposed weaknesses in that approach, including introducing on-line closings.

“Today’s mortgaged customers expect highly personalized, highly customizable experiences that include the right mix of technology and personal interactions based on their unique needs, ’’ he told Sichelman.

The survey added that customer satisfaction had fallen across the generational board and that the process still requires some level of human interaction.

Another study by Buffalo-based appraisal management company Solidfi found that people still want in-person interactions when purchasing and refinancing their homes.

Their research found that borrowers prefer to close at an office or at home rather than online, and in the most recent survey almost two-thirds of respondents said that they preferred mobile notaries to handle their closings, including 71% of millennials.

Borrowers also preferred interaction with appraisers and said that they had a better overall experience when they were able to chat with the bank’s evaluation expert or walk along with an appraiser. Two out of three respondents also said that having a full interior evaluation, as opposed to an automated one, gave them more trust in their lenders.

Swerbinsky agreed that it’s important to maintain personal relationships. “Most CEOs view tech in manufacturing mortgages as quicker and more efficient, but at the end of the day it’s still a human business.”

CONTINUED ON PAGE 34

MORTGAGE BANKER | MAY / JUNE 2022 33

CONTINUED FROM PAGE 33

And that’s where speed through technology runs up against the human element that continues to slow down the mortgage process: appraisals and inspections.

Capacity’s Karandish said fintechs need to look at the aspects of those processes that are standardized and ask themselves whether that can be delivered with technology.

“One parallel to look at is the evolution of the insurance claim. It used to be that an adjuster had to come to your house or place of business to review and adjust your claim,” Karandish said. “Now we are seeing the use of photos and videos combined with AI and machine learning to meet that need. The same opportunity exists for appraisals and home inspections.

WHAT’S ON THE HORIZON?

Researchers at Stratmor Group, a datadriven mortgage advisory that works to solve complex challenges, streamline operations, improve the borrower experience, increase profitability and accelerate growth, believe they may be getting there.

Mike Seminari, the group’s customer 34 MORTGAGE BANKER | MAY / JUNE 2022

experience director, analyzed the real estate appraisal process and how lenders can use newer technologies to solve problems with appraisals and associated costs.

According to the report, released in May, appraisers are having trouble submitting appraisals on time, even though originations are down. Seminari said that when the lender can even find an appraiser to take on an assignment, 38% are still coming in late.

According to the research, lenders said turn times were the most important factor in the appraisal process at 38%, with “quality” a close second at 35%. Lenders also said it takes an average of more than a week from the time of application to the scheduling of an appraisal, according to the report, which was commissioned by Reggora, an appraisal management software company.

“Investments in technology that automates manual processes and potentially shortens cycle times is a good long-term strategy for lenders to consider,” Seminari said in the report. “At Stratmor, we’ve yet to see appraisal solutions take center stage like other innovations before them, but it may only be a

matter of time before they will.”

The report listed some of the digitized options that could modernize appraisals and cut down wait times by up to two days, according to appraisal software companies.

They include: Software that provides one place to manage an entire fee panel that ensures independence requirements and tracks all appraiser licenses.

It also provides automatic appraisal allocation based on coverage areas set by the appraisers, as well as visibility to different stakeholders to minimize internal status updates.

Appraisal software that collects payments directly from the borrower and pays the AMC or appraiser directly and allows the originator visibility into the status of an appraisal.

“The big question is, do the return on investment (ROI) numbers pencil out?” says Seminari. “In a constricted market like the current one, lenders have their hands full just trying to stay afloat. But the even bigger question may be, can lenders afford to ignore appraisal innovation?”

L EG AL

MORTGAGE BANKING LAWYERS These attorneys are universally recognized by their peers as setting the highest standard for the legal profession, excelling in all fields — knowledge, analytical ability, judgment, communication, and ethics.

Scott L. Luna Partner sluna@ravdocs.com 469-730-4607 Scott Luna’s practice is focused on real estate law with an emphasis on mortgage document preparation and land title issues. Scott managed a successful multistate highvolume title and document preparation business for over 20 years before joining RAV and is recognized throughout the real estate legal community for his expertise. As a past President of the Oklahoma Land Title Association, Scott’s ongoing involvement in the industry adds to his wealth of title-related knowledge. Scott received his Juris Doctor degree from the University of Tulsa College of Law in 1991 after receiving his Bachelor of Science degree from Texas A&M University.

Scott is currently licensed in Texas, Oklahoma, Missouri, Minnesota, Nebraska, and Kentucky.

Mitchel H. Kider Managing Partner

Gregory S. Graham

kider@thewbkfirm.com 202-557-3511

ggraham@bmandg.com 972-353-4174

In his 35 years as a practicing attorney, Mitch has represented banks, mortgage companies, residential homebuilders, real estate settlement service providers, credit card issuers, and other financial service companies in a broad range of matters. Mitch represents clients in investigations and enforcement actions before the Consumer Financial Protection Bureau, Department of Housing and Urban Development, Department of Veterans Affairs, Department of Justice, Federal Trade Commission, Ginnie Mae, Fannie Mae, Freddie Mac, and various state and local regulatory authorities and Attorneys General offices.

In addition, Mitch acts as outside general counsel to smaller companies and special regulatory and litigation counsel to Fortune 500 companies.

Black, Mann & Graham CoManaging Partner Gregory S. Graham has practiced in the areas of real estate, litigation, and bankruptcy law since 1989, and is currently licensed in Texas and admitted to practice before the United States District Courts for the Northern and Eastern Districts of Texas.

Mr. Graham is also currently licensed to practice law in Georgia and has been since 2017. He received his Juris Doctor degree from Southern Methodist University School of Law in 1989 after receiving a Bachelor of Arts cum laude from UT Dallas.

Co-Managing Partner

Mr. Graham’s affiliations include the Dallas MBA, where he previously served as a Director & Chairperson of the Legislative Committee; DFW Mortgage Brokers Association, where he previously served as Legal Counsel; MBA; NAMB; Texas AMB prior to its closure; and Texas MBA.

James W. Brody, Esq. Mortgage Banking Practice Group Chair

jbrody@johnstonthomas.com 415-246-3995 James Brody actively manages all the complex mortgage banking litigation, mitigation, and compliance matters for Johnston Thomas. Mr. Brody’s experience centers on those legal issues that arise during loan originations, loan purchase sales, loan securitizations, foreclosures, bankruptcy, and repurchase & indemnification claims. He received his B.A. in International Relations from Drake University and received his J.D., with a certified concentration in Advocacy, from the University of the Pacific, McGeorge School of Law. He was a recipient of the American Jurisprudence BancroftWhitney Award. He is licensed to practice law in California and has been admitted to practice in front of the United States District Courts for the Central, Eastern, Northern, and Southern Districts of California.

In addition, Mr. Brody has served as lead litigation counsel for numerous mortgage banking and commercial related disputes venued in both state and federal courts, in a direct capacity or on a pro hac vice basis, in AZ, CA, FL, MD, MI, MN, MO, OR, NJ, NY, PA, TN, and TX.

Marty Green Attorney marty.green@ mortgagelaw.com 214-691-4488 ext 203 Marty Green leads the Dallas office of Polunsky Beitel Green, one of the country's top residential mortgage law firms.

Mr. Green is an accomplished attorney with more than 20 years of experience in the legal, banking and financial services industries. He is the former Executive Vice President and General Counsel for Dallas’ CTX Mortgage Co. and previously worked with the Baker Botts law firm in Dallas as Special Counsel. In his role as leader of the firm’s Dallas office, Mr. Green advises clients on the latest rules and regulations covering residential lending, in addition to building on Polunsky Beitel Green’s long tradition of delivering loan closing documents with speed and accuracy. Mr. Green is admitted to practice before all Texas state and federal district courts in addition to the U.S. Court of Appeals for the Fifth Circuit. An honors graduate of the University of Texas School of Law, he earned his undergraduate degree at Southern Utah University.

Texas Monthly has selected him as a Super Lawyer multiple years.

MORTGAGE BANKER | MAY / JUNE 2022 35

MortgageBanker MAGAZINE

CURRENT STATUS OF COVID-19 RELATED FORBEARANCES

8.2 Million Forbearances

Removed/Expired Performing 4,335,000 53%

Removed/Expired - Delinquent Active Loss Mit 368,000 5% Removed/Expired Delinquent 279,000 4%

Active Forbearance Term Extended 500,000 6% Active Forbearance Original Term 189,000 2%

Paid Off 2,381,000 29%

Removed/Expired Active FC 78,000 1%

Source: McDash Flash Data as of April 19, 2022

NUMBER OF ACTIVE ARM MORTGAGES IN MILLIONS 15.0M

Already Reset

Has Not Reset

14.0M 13.0M 12.0M 11.0M 10.0M

1.1

1.3 1.7

1.4

1.5

1.7

2.2

1.9

1.4

1.5

2.9

2.4

1.5

1.6

3.6

3.4

1.6 4.4

1.4

4.4

4.2

5.8 4.0

3.3

2.8

2.3

5.0 2.2

3.3

1.9

1.0M

2.0

2.0M

2.6

3.0M

2.1

1

1.1

3.3

4.0M

3.2

5.0M

4.0

3.1

2.4

4.3

6.0M

4.2

8.6

7.0M

10.3

9.9

8.0M

8.3

9.0M

20 00 -0 2 20 01 -0 2 20 02 -0 2 20 03 -0 2 20 04 -0 2 20 05 -0 2 20 06 -0 2 20 07 -0 2 20 08 -0 2 20 09 -0 2 20 10 -0 2 20 11 -0 2 20 12 -0 2 20 13 -0 2 20 14 -0 2 20 15 -0 2 20 16 -0 2 20 17 -0 2 20 18 -0 2 20 19 -0 2 20 20 -0 2 20 21 -0 2 20 22 -0 2

.0M

Source: McDash

36 MORTGAGE BANKER | MAY / JUNE 2022

DATABANK BLACK KNIGHT HOME PRICE INDEX

For-Sale Inventory | March 2022 1-Month Home Price Change

REGION NAME

4.0%

Annual Home Price Growth Rate

+19.9%

+20%

United States

3.5%

3.0%

Annual Home Price Growth Rate

2.5%

2.0%

+10%

1.5%

1.0%

+5%

0.5%

1-Month % Change in Avg Home Price

+15%

LEVEL

YoY

1,500,000

0.0%

-10...

1,000,000 754,395 -20...

0.0%

0%

500,000

-0.5%

-30...

-5% 2022-03

2021-12

2021-09

2021-06

2021-03

2020-12

2020-09

2020-06

2020-03

2019-12

2019-09

2019-06

2019-03

2018-12

2018-09

2018-06

2018-03

2017-12

2017-09

2017-06

2017-03

2016-12

2016-09

2016-06

2016-03

2015-12

2015-09

2015-06

2015-03

2014-12

2014-09

2014-06

2014-03

2013-12

2013-09

2013-06

2013-03

2012-12

2012-09

2012-06

2012-03

-1.0%

0 Jan 2018

Jan 2020

Jan 2022

Jan 2019

Jan

Jan 2019

Jan

Source: Black Knight Home Price Index

Zillow Economic Research

For-Sale Inventory | March 2022 REGION NAME United States MONTHLY P&I PAYMENT TO PURCHASE AVERAGE PRICED HOME (WITH 20% DOWNPAYMENT AT PREVAILING 30-YEAR INTEREST RATE)

YoY For-Sale Inventory | March 2022

$1,809

LEVEL

REGION NAME

$1,800

$1,372

$1,400

United 0.0% States

1,500,000

$1,600

LEVEL -10...

YoY

1,000,000 754,395 -20...

1,500,000

$1,000

500,000 $800

$600

$400

$200

-22.5%

-30...

0.0%

-10...

1,000,000

0 Jan 2018

Jan 2020

Jan 2022

Jan 2019

Jan 2020

Jan 2021

754,395 Jan 2022 -20...

Zillow Economic Research

500,000 -30...

$0 19 96 -0 4 19 97 -0 4 19 98 -0 4 19 99 -0 4 20 00 -0 4 20 01 -0 4 20 02 -0 4 20 03 -0 4 20 04 -0 4 20 05 -0 4 20 06 -0 4 20 07 -0 4 20 08 -0 4 20 09 -0 4 20 10 -0 4 20 11 -0 4 20 12 -0 4 20 13 -0 4 20 14 -0 4 20 15 -0 4 20 16 -0 4 20 17 -0 4 20 18 -0 4 20 19 -0 4 20 20 -0 4 20 21 -0 4 20 22 -0 4

Monthly P&I Payment

$1,200

0 Jan 2018

Source: Black Knight Assumes a 20% down payment and utilization of a 30-year fixed rate mortgage at the prevailing interest rate

Jan 2020

Jan 2022

Zillow Economic Research

MORTGAGE BANKER | MAY / JUNE 2022 37

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