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table of

N A T I O N A L

The Mortgage Godfather: Go to a Closing? Are You Crazy? By Ralph LoVuolo Sr.

A U G U S T

52 The One Station Every Real Estate Agent, Builder and Homebuyer is Tuned Into By Brian Sacks

2 0 1 6

M O R T G

V O L U

A SPECIAL FOCUS ON “EDUCATION & CERTIFICATION”

The Never-Ending Cycle of Learning By Brent Emler ..........................54 Exploring the Next Generation of Leaning Management Systems By Angela Pisciotta-Perez ........................................................56 Certification Is a Must By James Adams, CMSP & Geran Combs, CMSP ............................................................................58 Conquer Your Fear By Eric Weinstein ....................................................60 A History of Regulatory Changes in Appraisal and the Challenges of Staying Informed By William Waltenbaugh, SRA, AI-RRS..................62 The Right Investment in Learning By Alice Alvey ..................................64

FEATURES ARMCP Begins Rounding Out Steering Committee ..............................6

66 The Importance of Continual Education and Training in Our Business By Paul Lucido

As the Workforce Changes, So Must Mortgages By Tom Hutchens ....8 The Elite Performer: Sleep to Success By Andy W. Harris, CRMS ........8 Recruiting, Training and Mentoring Corner: The State of Education and Certification By Dave Hershman..............10 NAMB National: A Message From Nathan Pierce, CRMS ..................16 Time to Re-Focus on the Consumer By Andrew Liput..........................18 NAMB Perspective: August 2016............................................................20 Kenneth D. Campbell: A Sweet REIT Life By Phil Hall ..........................30 The Commercial Corner: Five Essential Aspects of Complete Small-Balance Commercial Loan Packages By Michael Boggiano ....32

72 NMP Mortgage Professional of the Month: Allen Beydoun, EVP, United Wholesale Mortgage By Phil Hall

V I S I T Company

Web Site

O U R

A D Page

Agility Resources Group ...................................... www.agilityresourcesgroup.com ......................................21 Angel Oak Mortgage Solutions ............................ www.angeloakms.com ......................................Back Cover Assurance Financial............................................ www.lendtheway.com ....................................................55 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................88 Caliber Home Loans.............................................. www.caliberwholesale.com ..............................................19 CallFurst.com ...................................................... www.callfurst.com ............................................................60 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................15 & 54 Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................71 Document Systems, Inc./DocMagic ...................... www.docmagic.com ......................................................11

76 Measuring Your Mid-Year Progress: Assessing Your Goals at the Halfway Mark By Ron Vaimberg

Fannie Mae ...................................................... www.fanniemae.com/solutions ......................................51 First Guaranty Mortgage Corp. ............................ www.fgmccorrespondent.com ..........Inside Front Cover & 56 Flagstar Bank .................................................... www.flagstar.com/ae ......................................................7 Freddie Mac ...................................................... www.freddiemac.com/loanadvisorsuite ............................9 Freedom Mortgage Corporation .......................... www.freedomwholesale.com ..........................................59 HAMB .............................................................. www.hamb.org ..............................................................68

HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................81

MBS Highway .................................................... www.mbshighway.com/MNN ..........................................49

Moneyhouse U.S. .............................................. www.mhodportal.com ....................................................61

of contents

R T G A G E

L U M E

P R O F E S S I O N A L

N U M B E R

Lykken on Leadership: Never Stop Asking Why … Six Questions to Start With By David Lykken ........................................40 What’s the Best Way to Hire Professionals Who Are Already

Successful Without Wasting Valuable Time and Resources? ............42 Industry Updates: August 2016 By Melanie A. Feliciano Esq. ..............46 OrigiNation: Appraisal Woes Part II By Andy W. Harris, CRMS ............48 The Long & Short: The Business of Short Sales By Pam Marron ........50 Scenes From the Ultimate Mortgage Expo 2016..................................70 The NAPMW Report: NAPMW’s Focus on Women Paying Off as Association Shows Growth Surge By Kelly Hendricks ....................74 MBA’s Mortgage Action Alliance ..........................................................78 Operation VA-SITREP: Refinancing and Funding Fees By Richard M. Bettencourt Jr., CRMS, CMHS..........................................80 How Wal-Mart Can Help You keep Your Commission By Bubba Mills ..........................................................................................82

COLUMNS New to Market..........................................................................................12 News Flash: August 2016 ........................................................................14 Heard on the Street ................................................................................38 Outstanding Places to Work ..................................................................84 NMP Calendar of Events ........................................................................85 NMP Resource Registry ..........................................................................86

A D V E R T I S E R S Company

Web Site

Page

Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................36 & 37 Mortgage Professionals of Iowa .......................... www.greatmortgagepros.com ........................................64 NAMB+ ............................................................ www.nambplus.com ......................................................43 NAMB National .................................................. www.nambnational.com ................................................33 NAMBPAC.......................................................... www.namb.org ..............................................................29 NAPMW ............................................................ www.napmw.org ....................................................35 & 70 NAWRB ............................................................ www.nawrb.com ............................................................79 NMP U .............................................................. www.nmpucoaching.com ........................................1 & 41 NRMLA.............................................................. www.nrmlaonline.org ....................................................62 NYC Real Estate Expo.......................................... www.nycnetworkgroup.com ..........................................57 Originator Connect ............................................ www.originatorconnect.com ..........................................68 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................13, 69 & Inside Back Cover REMN Wholesale ................................................ www.remnwholesale.com ..............................................17 Secure Insight.................................................... www.secureinsight.com ..................................................39 TagQuest .......................................................... www.tagquest.com ........................................................75 Texas Mortgage Roundup.................................... www.txmortgageroundup.com ........................................70 The Bond Exchange............................................ www.thebondexchange.com ..........................................63 United Wholesale Mortgage ................................ www.uwm.com ..............................................................5

AUGUST 2016 Volume 8 • Number 8

FROM THE

1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com STAFF Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 ericp@nmpmediacorp.com

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SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@nmpmediacorp.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA, and other state mortgage trade associations. National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in NMP Media Corp. publications. National Mortgage Professional Magazine and NMP Media Corp. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.

publisher’s desk

The critical importance of education and certification It’s hard to believe that, previous to Dodd-Frank, an industry that facilitated billions of dollars in home loan financing had very few educational requirements, at least for loan officers. While there’s plenty about federal regulation that can make anyone cranky, having a more educated, licensed and certified team to help build the businesses has been very good, and education and certification are two keys to nearly limitless success. Those who pursue the opportunity to learn more than what regulatory requirements mandate will stand above their competitors, especially in the eyes of the borrowers. Need to know where to start? This issue is perfect for you. Here is a glimpse into what you’ll find inside … It’s easy to forget that we’re working in an industry that is changing on a near constant basis. If you doubt that, read William Waltenbaugh’s article on the history of regulatory changes in the appraisal business … and that’s just one part of our business. To keep up, we have to commit to never stop learning, or as Brent Emler puts it, going back to basics and taking advantage of one of the oldest learning tools available—books! Of course, we have access to many modern methods for learning today, and training and education specialist Angela Pisciotta-Perez writes about nextgeneration learning management systems in her article. A suitable companion piece to Angela’s article is Alice Alvey’s “The Right Investment in Learning.” In the end, however you choose to invest in your own education, certification is an important goal. James Adams tells you why in his article. What’s holding you back? If it’s fear, check out Eric Weinstein’s article and meet that fear head on. Most of our readers already know how vitally important continued education, training, motivation and coaching are to their success. If you’re not sure what impact these elements have on your business, start by assessing where you are right now. Ron Vaimberg shows you exactly how to do it in his article in this issue. Ron is executive director and head coach of nmpU, the innovative new education, training and coaching division we launched earlier this year. Ron has been a leading speaker, trainer and strategic coach since 1983, and today, he’s spearheading an effort that is already making a difference in the businesses of our readers. I’m very proud of nmpU because it allows us to go beyond just bringing you information about what you need to do to become more successful and actually provides it. With Ron’s help, we’ve launched a mortgage industry first, a program that will absolutely help you earn more money. Ron will be presenting live interactive training to originators across the country via a two-hour Live Streaming Video titled, “How to Quickly Locate, Target and Win Top Agent Relationships” from our Mortgage News Network studios on Tuesday, Sept. 20 at 1:00 p.m. EDT. For more information turn to page 41. Space is limited, so reserve early at nmpULive.com. Enjoy this issue. Sincerely, Joel M. Berman, Publisher-CEO • NMP Media Corp. • Joel@NMPMediaCorp.com

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

EDITORIAL CONTRIBUTORS Featured Editorial Contributors Rocke Andrews, CMC, CRMS

Ralph LoVuolo Sr.

David Lykken Richard M. Bettencourt Jr., CRMS, CMHS

Ron Vaimberg

Editorial Contributors James Adams, CMSP

Pam Marron Donald J. Frommeyer, CRMS

Angela Pisciotta-Perez

Kelly Hendricks

Brian Sacks

Tom Hutchens

William Waltenbaugh,

Alice Alvey

Linda McCoy, CRMS Phil Hall

SRA, AI-RRS

Andrew Liput

Eric Weinstein

Paul Lucido

Fowler Williams

Michael Boggiano

Nathan Pierce, CRMS Andy W. Harris, CRMS

Geran Combs, CMSP

Bubba Mills

Bob Sweeney, CRMS Dave Hershman

Melanie A. Feliciano Esq.

Brent Emler

UWM IS TH HE SALE LENDER #1 WHOLES IN THE NA AT T TION And you are the reason why y..

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United Wholesale Mortgage (U UWM) ranked #1 wholesale mortgage lender in the nation for 2015 by Insid ide Mortg tgage Fi Finance.

This information is provided to mortgage and real estate pro ofessionals only and is not intended nor is it authorized for consumer distribution. NMLS #3038.

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success to you. From the e technology and tools we develop to our constant drive to make lending

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At UWM, weâ&#x20AC;&#x2122;re driven by one purpose: to champion the success s of brokers nationwide. We owe our

NAMB—The Association of Mortgage Professionals 2701 West 15th Street, Suite 536 l Plano, Texas 75075 l Phone: (972) 758-1151 l Fax: (530) 484-2906 l Web site: www.namb.org

NAMB 2015-2016 BOARD OF DIRECTORS O F F I C E R S

Rocke Andrews, CMC, CRMS President Lending Arizona LLC 3531 North Pantano Road Tucson, AZ 85750 (520) 886-7283 randrews@lendingarizona.net

Fred Kreger, CMC President-Elect American Family Funding 28368 Constellation Road, Suite 398 Santa Clarita, CA 91350 (661) 505-4311 fred.kreger@affloans.com

John Stevens, CRMS Vice President Mountain West Financial 380 North 600 East Pleasant Grove, UT 84062 (801) 427-7111 johngstevens@gmail.com

Rick Bettencourt, CRMS Secretary Mortgage Network 300 Rosewood Drive Danvers, MA 01923 (978) 777-7500 rbettencourt@mortgagenetwork.com

Andy W. Harris, CRMS Treasurer Vantage Mortgage Group Inc. 16325 Boones Ferry Road, #100 Lake Oswego, OR 97035 (503) 496-0431, ext. 302 aharris@vantagemortgagegroup.com

John Councilman, CMC, CRMS Immediate Past President AMC Mortgage Corporation 10136 Avalon Lake Circle Fort Myers, FL 33913 (239) 267-2400 jlc@amcmortgage.com

Donald J. Frommeyer, CRMS NAMB CEO American Midwest Bank 200 Medical Drive, Suite C-2A Carmel, IN 46032 (317) 575-4355 donald.frommeyer@gmail.com

D I R E C T O R S

Kimber White RE Financial Services Inc. 1620 West Oakland Park Blvd. #201 Oakland Park, FL 33311 (954) 306-3553 kimber.lmt@gmail.com

Olga Kucerak, CRMS Crown Lending 328 West Mistletoe San Antonio, TX 78212 (210) 828-3384 olga@crownlending.com

Valerie Saunders RE Financial Services 13033 West Lindburgh Avenue Tampa, FL 33626 (866) 992-0785 valsaun@gmail.com

David Luna, CRMS Mortgage Educators and Compliance 947 South 500 E, Suite 105 American Fork, UT 84003 (877) 403-1428 david@mortgageeducators.com

Robert Sweeney, CRMS 600 East Carmel Drive Carmel, IN 46032 (317) 625-3287 bob.sweeney46@yahoo.com

Linda McCoy, CRMS Mortgage Team 1 Inc. 6336 Piccadilly Square Drive Mobile, AL 36609 (251) 650-0805 linda@mortgageteam1.com

Michele Velez, CMC 1300 South El Camino Real, Suite 505 San Mateo, CA 94402 (650) 409-2850 shellvelez@gmail.com

Nathan Pierce, CRMS Advanced Funding Home Mortgage Loans 6589 South 1300 East, Suite 200 Salt Lake City, UT 84121 (801) 272-0600 npierce@advfund.com

Mike Anderson, CRMS Mortgage Financial Services 11940 Bricksome Ave., Suite B Baton Rouge, LA 70816 (504) 451-3339 manderson@mfsus.com

National Association of Professional Mortgage Women 345 North Main Street, Suite 313 l West Hartford, CT 06117 l Phone: (800) 827-3034 l E-mail: napmw1napmw.org l Web site: napmw.org

2016-2017 NAPMW NATIONAL BOARD OF DIRECTORS

AUGUST 2016 n National Mortgage Professional Magazine n

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Kelly Hendricks National President (314) 398-6840 President@NAPMW.org

Cathy Kantrowitz President-Elect (845) 463-3011 PresElect@NAPMW.org

Susan Kerr Vice President (703) 871-1310 NVP1@NAPMW.org

Laurel Knight Vice President (425) 287-5351 NVP2@NAPMW.org

Glenda Mooney Secretary (281) 556-9182 NatSecretary@NAPMW.org

Judy Alderson Treasurer (918) 250-9080, ext. 300 NatTreasurer@NAPMW.org

Frances Reinhardt Parliamentarian (678) 331-1384 FReinhardt@FirstServiceTitle.net

Vincent Valvo Executive Director (860) 922-3441 NAPMW1@NAPMW.org

National Consumer Reporting Association 701 East Irving Park Road, Suite 306 l Roselle, IL 60172 l Phone: (630) 539-1525 l Fax: (630) 539-1526 l Web site: www.ncrainc.org

2015-2016 BOARD OF DIRECTORS

William Bower President (800) 288-4757 WBower@continfo.com

Julie Wink Vice President/Treasurer (901) 259-5105 Julie@DataFacts.com

Mike Brown Ex-Officio (908) 813-8555, ext. 3020 MBrown@CISinfo.net

Mary Campbell Director (701) 239-9977 Mary@AdvantageCreditBureau.com

Matthew Carpenter Director MCarpenter@Sarma.com

Maureen Devine Director (413) 736-4511 MDevine@StrategicInfo.com

Mike Thomas Director (615) 386-2285, ext. 285 MThomas@CICCredit.com

Dean Wangsgard Director (801) 487-8781 Dean@nacmint.com

Delia Zuniga Director Delia@AdvantagePlusCredit.com

Terry Clemans Executive Director (630) 539-1525 TClemans@NCRAInc.org

Jan Gerber Office Manager/Member Services (630) 539-1525 JGerber@ NCRAInc.org

Scott Ledbetter Director (214) 783-3315

ARMCP Begins Rounding Out Steering Committee he Association of Residential Mortgage Compliance Professionals (ARMCP), a not-for-profit, professional organization devoted to residential mortgage compliance professionals, has added another member to its seven-member Steering Committee. ARMCP is in need of two additional residential mortgage compliance and/or regulatory compliance professionals to join President and Founder Jonathan Foxx on the Steering Committee. “This is a leadership position,” said Foxx. “We ask that you be a member who is actually involved in residential mortgage compliance or provide regulatory compliance guidance to such persons.” The purpose of ARMCP’s Steering Committee is to: Draft and review the association’s by-laws; determine a nominating process for officers; discuss the association’s first conference; decide on subcommittees and the process for appointing committee chairs; set forth a Mission Statement; and other business relating to the association’s mission. Interested parties may contact ARMCP at Info@ARMCP.org.

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As the Workforce Changes, So Must Mortgages By Tom Hutchens

AUGUST 2016 n National Mortgage Professional Magazine n

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he American workforce is undergoing an era of change. As the “gig economy” becomes more prominent, there is an ever-increasing number of independent contractors—or contingent workers—infiltrating the labor pool. According to the U.S. Department of Labor (DOL), contingent workers are those with temporary jobs and do not have implicit or explicit contract for employment, such as Uber drivers or those who are otherwise self-employed. As stated in a recent Bloomberg article, the number of contingent workers has been increasing significantly in the last 20 years. And, beyond that, a recent Deloitte survey found that 42 percent of U.S. executives expect to use more contingent workers within the next three to five years. As these types of jobs are showing no sign of disappearing, the question remains: are W-2 tax forms really the most accurate proof of cash flow when applying for a mortgage? It’s already difficult for homebuyers to qualify for QM loans due to the tight credit box in the mortgage market. These contingent workers get 1099s instead of W-2s, so when it comes time to purchase a home, many are left in a lurch as they cannot qualify for an Agency loan under the current requirements. Despite not being able to present a W-2, many of these workers are otherwise qualified for a mortgage but cannot get one since the mortgage industry has been slow to adapt to the gig economy. Recently, the mortgage industry has relied on these tax forms for proof of income rather than taking a holistic view of a potential borrowers’ financial situation. If mortgage brokers want to remain competitive in the evolving economy and service those workers who are embracing this change, they will need to come up with programs that give homebuyers a means of verifying income outside of W-2s. Many lenders in the non-agency space are starting to capitalize on this evolving trend. One solution is to allow potential homebuyers to use bank statements as qualifying income instead of W-2 income. In these types of programs, no tax returns are required, 24 months of bank statements must be shown, and those who qualify can have credit scores as low as 620, up to 85 percent LTV and rates starting in the five percent range. Angel Oak Mortgage Solutions offers these programs and has seen a sharp increase in volume as an increasing number of borrowers and real estate agents become aware of their existence. If lenders want to stay relevant in the changing landscape of the labor market, they will need to evolve their programs to cater to this large percentage of the U.S. workforce.

Tom Hutchens is senior vice president of sales and marketing at Angel Oak Mortgage Solutions, an Atlanta-based wholesale lender currently licensed in 32 states. Tom has been in the real estate lending business for nearly 20 years. He may be reached by phone at (855) 539-4910 or email Info@AngelOakMS.com.

SPONSORED EDITORIAL

the

elite performer Sleep to Success BY ANDY W. HARRIS, CRMS

ealth is an important aspect of life and something we all need to prioritize in the business world by remaining active and exercising. This is especially important for any white collar worker spending most of their time indoors sitting at a desk. To hit our peak performance both at work and at home, we must have an intentional focus on living a healthy lifestyle. A huge aspect of this many of us take for granted is getting enough quality sleep each night. I know many of us, including myself, have a challenge with this. After a long hard day at work, many of us come home and want to relax or just spend time with our significant others and kids for those of us with them. We might stay up and watch a show, and maybe another show … you know how it goes. The important thing we need to remember is getting in the habit of having a bed time even as adults. By getting on a consistent schedule, primarily during the week, you are able to control the hours and time your body is at rest and recovering for a more productive and energetic tomorrow. Without a consistent bed time, your hours of sleep will be deprived. According to the National Sleep Foundation, adults should be getting seven to nine hours of sleep (or an average of eight hours) each night. Americans currently average 6.8 hours of sleep each night, down more than an hour from 1942. There are numerous medical studies that have related a lack of sleep to health problems. I know many of us entrepreneurs get even less than the average 6.8 hours of sleep quite often or even less than six hours a night which is certainly a concern if it occurs often for our health and well-being. We all know how much better we perform and how much better we feel after a good night’s rest. Besides the clear benefits to health, here are a few benefits to your life and ultimately your business through better sleep:

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Better focus and attention with increased productivity. Better memory and creativity. Reduced stress and lower risk of depression. You’ll have more energy. You will make better decisions. You’ll simply be happier. The list goes on.

So get on a schedule, have a plan. Try adding an hour of sleep this week and see what happens!

Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and past president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 4960431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

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A Brighter Idea in Loan Production

Recruiting, Training and Mentoring Corner

The State of Education and Certification BY DAVE HERSHMAN

ust about every mortgage company in America makes this amazing claim: Our loan officers are experts or expert mortgage advisors. That is an important statement and certainly a significant mission for a mortgage company. The problem with this statement? The vast majority of loan officers are not experts in the industry. How do I know that? Besides being one of the leading educators of loan officers for the past 30-plus years through my books, articles, courses and schools, I have also recruited and supervised hundreds of loan officers during this time. Some were experts … however, the majority were not. When I gave my live three-day advanced mortgage school across the nation years ago, I cannot tell you how many loan officers with 10 to 30 years of experience told me at the end of the course, “I wish I had learned this when I started.” If you don’t believe me on this point—I can provide plenty of quotes from loan officers who made this very statement. Twenty years in the industry and they did not have the knowledge they now knew that they needed. The conditions for growing experts have never been present in this industry. For more than 25 years of my career, there were not even licensing and/or educational requirements to enter the industry in most states. And now that we have licensing requirements—it is quite obvious

AUGUST 2016 n National Mortgage Professional Magazine n

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that the government is not interested in helping our industry become experts or even competent. But they sure want loan officers to learn the penalty for doing something wrong. How does the fact that RESPA regulations are called “Regulation X” help our clients? Someone please let me know, because I don’t get it. When someone arrives within the industry, other than license prep or continuing education (more of the same), there is no requirement for someone to become an expert or even further their education. With organized learning systems not integrated into most companies, learning happens incrementally. It is passed down from those who might or might not be experts themselves. Why should companies invest the time and resources in education with the turnover we have within this industry? And without such encouragement, most loan officers are more likely to seek the next deal instead of the next bit of knowledge. Being on 100 percent commission is not conducive to anything but producing. Feeding your family is more important than taking a course–I do get that concept. What is wrong with this picture? For one thing, our loan officers deal with the most important financial decision most people make in a lifetime. And owning a home is also the most important non-financial decision they can make for their family and future as well. Shouldn’t we

have experts guiding consumers with knowledge instead of just the lower rates? I get the impression that the Consumer Financial Protection Bureau (CFPB), our primary regulator, thinks that a mortgage is a commodity rather than an important financial tool. In countless other industries, education and training required is extensive before a service provider can even speak to a client. In our industry, we encourage talking to clients as soon as they get their license and sometimes before. In other industries, one has to undertake months or years of education and training to qualify for a position and/or to do their job. We do have solid education available in the industry. Unfortunately, the money is really in licensing preparation because it is required. Of those who go beyond license preparation or CE, some offer certifications and some do not. And I cannot believe I am saying this, because I have offered the Certified Mortgage Advisor designation for years–but it is not about the certification. Certainly a certification has a marketing value. But it is really about the education and being able to deliver great advice to our clients. We are not selling light

bulbs here. Our clients deserve the guidance of an expert. And after reading this article, I venture that you can guess why I use word “advisor” in our designation. Because that should be the goal of our industry– becoming the most qualified advisor that we can be. Today, with affordable and flexible online courses available, there is no reason for individuals not to get the training they need. There is no travel or time constraints. And there is no reason that a company should not require such education for their loan officers, especially if their marketing department is going to make the “expert” claim that so many have adopted. Education is inexpensive. But the cost of uneducated loan officers can be devastating in many ways. That is a topic for another day. However, these companies need to make the commitment to make education part of their mission. That starts by not just making the courses available, but by making them mandatory. And this commitment should include competency testing for present sales forces. If we want to change the image of the industry, we must do this by changing the foundation of our industry—our human resources.

Dave Hershman is a top author in this industry with seven books published, as well as the founder of the OriginationPro Marketing System and the OriginationPro’s online comprehensive mortgage school. Dave is also director of Branch Support for McLean Mortgage. He may be reached by e-mail at Dave@HershmanGroup.com or visit OriginationPro.com.

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n National Mortgage Professional Magazine n AUGUST 2016

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newtomarket United Wholesale Mortgage Launches New One Percent Downpayment Program

AUGUST 2016 n National Mortgage Professional Magazine n

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United Wholesale Mortgage (UWM) has announced the launch of a new program enabling consumers to purchase homes with as little as one percent down, making UWM one of the first wholesale mortgage lenders in the country to offer a conventional one percent down program to mortgage brokers. UWM will provide eligible homebuyers with a two percent lender-paid downpayment that gives consumers a three percent equity boost at closing. “The one percent down program we’re introducing is a new alternative to the three percent down programs that already exist,” said Mat Ishbia, president and CEO of UWM. “It’s a conventional loan that is designed for people with a strong credit payment history who want to keep as much money in their wallet as possible when buying a home. By introducing this conventional one percent down program to the wholesale space, we’re equipping mortgage brokers with a distinct competitive advantage in the market and a new way to help borrowers realize homeownership.” This UWM program is available to homebuyers in all 50 states with a minimum FICO score of 700 and a maximum debt-to-income ratio of 43 percent. UWM is one of the first wholesale lenders in the U.S. offering a one percent downpayment option in the form of a conventional loan, as opposed to a governmentbacked mortgage.

Silver Hill Funding Announces an Array of New Program Options Silver Hill Funding has introduced several updates to their lending program for smallbalance commercial mortgage loans from $250,000 to $1 million. The nationwide program now features financing for mobile home parks and automotive properties, the latest additions to the list of eligible property types which also includes multifamily, mixed-use, office, selfstorage, warehouse, light industrial and retail properties. Silver Hill Funding has further expanded their program by adding 30-year amortizations to their product offering and a three-year prepay option for borrowers who may choose to refinance or pay off their loan in the near term. “These additions to our program create more opportunities for commercial and residential mortgage brokers looking to finance small-balance commercial deals and become solution providers in the eyes of their clients,” said Michael Boggiano, senior vice president–national sales manager for Silver Hill Funding. Other program highlights include financing for owner-occupied and investment properties; terms of five-, seven- and 10-years; loan-to-value (LTV) ratios of up to 75 percent; no seasoning requirements; and cashouts. Ellie Mae Launches Version 16.2 of Encompass

Ellie Mae has announced that it has launched Version 16.2 of

Encompass, its all-in-one mortgage management solution. The latest version of Encompass offers new and enhanced integrations with Freddie Mac tools, and enhancements to the Total Quality Loan (TQL) program, including strengthened strategic partnerships and updates to Encompass Product and Pricing Service (EPPS). “The latest version of our Encompass all-in-one mortgage management solution will offer enhanced TQL capabilities, more customer choice with leading providers like First American Mortgage Solutions and DataVerify and updates to the Encompass Product and Pricing Service,” said Jonathan Corr, president and CEO of Ellie Mae. “And with this new release of Encompass, Ellie Mae is first to market with our integration with the new Freddie Mac Loan Product Advisor and Loan Quality Advisor, key elements of Freddie Mac’s Loan Advisor Suite. This release incorporates their tools directly into Encompass, offering our customers greater certainty and more streamlined workflow.” Ellie Mae is the first to market with integrations to select applications in Freddie Mac’s new Loan Advisor Suite. Encompass will offer Loan Product Advisor, the replacement for Freddie Mac’s automated underwriting system, Loan Prospector, and the cornerstone tool of Freddie Mac’s Loan Advisor Suite. Loan Product Advisor is the next generation in the evolution of automated underwriting with a focus on further streamlining the underwriting process for greater efficiency. In addition, Encompass will offer integration with Freddie Mac’s Loan Quality Advisor, available to Freddie

Mac sellers. The integration of Loan Quality Advisor, Freddie Mac’s risk and loan eligibility assessment tool, into Ellie Mae’s Encompass allows its customers to originate loans within Freddie Mac guidelines more easily and with greater certainty, taking immediate advantage of the new features Freddie Mac is bringing to market. Fannie Mae Enhances HomeReady Mortgage to Expand Credit Access

Fannie Mae has announced enhancements to its HomeReady product. HomeReady allows borrowers to provide as little as three percent down, and was the first affordable lending option to offer creditworthy borrowers the ability to qualify with income from nonborrower household members. HomeReady continues to evolve with enhancements that expand access to credit responsibly and promote successful homeownership. New enhancements offer: l Simplified income eligibility: Fannie Mae has raised income limits to 100 percent of area median income in all areas, except low income market tracts that have no limit, making it easier for lenders to determine eligibility for HomeReady and helping more homebuyers take advantage of this affordable mortgage option. l More support for sustainable homeownership: In addition to the online course offered by Fannie Mae’s partner Framework, Fannie Mae will accept one-on-one pre-purchase advising from HUD-approved providers to meet HomeReady’s homeownership education requirement. In the coming months, Fannie Mae will offer lenders a $500 credit to encourage borrowers to take advantage of this new

personalized support option. Together, these options will help more borrowers succeed in sustainable long-term homeownership with HomeReady. l Market-driven features: More than 700 Fannie Mae lenders have already adopted the HomeReady mortgage, helping thousands of families become homeowners. HomeReady features continue to evolve to incorporate feedback from lenders, making it a simpler, more effective product for the affordable and underserved market.

now includes access to the industry’s most comprehensive foreclosure and mortgage information. The CoreLogic University Data Portal enables faculty, graduate and undergraduate students, to run queries, extract residential and commercial property characteristics and download reports for qualified academic research at preferred rates. The portal now offers two additional datasets: l Foreclosure Data, which contains nearly 45 million historical preforeclosure and foreclosure records through court action,

judicial and non-judicial foreclosure and foreclosure sales, providing coverage of 94 percent of U.S. counties. l CoreLogic MarketTrends, which contains 45 million geographiclevel records from 2000 to the present, covering more than 85 percent of all outstanding mortgages. MarketTrends data elements include median sales price, median loan-to-value, delinquency, distressed sales, real estate owned, housing stock, number of sales and negative equity. The company developed the

portal and preferred rate structure in response to the hundreds of requests it receives each year from academics researching various real estate, mortgage and risk-related issues. CoreLogic data has been widely used in academic research examining subjects such as housing migration, unemployment, demographics, housing reform and other topics relevant to the U.S. housing market and overall economy. “These enhancements significantly expand the scope of continued on page 18

Black Knight Financial Upgrades Its LoanSphere Empower LOS

n National Mortgage Professional Magazine n AUGUST 2016

CoreLogic Announces Upgrade to Its University Data Portal CoreLogic has announced that its online University Data Portal

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Black Knight Financial Services (BKFS) has announced that it has made significant enhancements to its LoanSphere Empower loan origination system (LOS) to provide expanded support for home equity loans (HELOANs) and home equity lines of credit (HELOCs). These enhancements add new capabilities within Empower to provide a more robust, streamlined end-to-end home equity application and fulfillment process, resulting in greater efficiencies for lenders. Empower supports retail, wholesale and consumer-direct lending channels, and delivers the functionality to electronically capture and process data for every facet of the loan origination process. The new enhancements to Empower include a configurable rules engine that automates the underwriting credit-risk assessment process, as well as a product and pricing engine that offers added flexibility and greater functionality. “We significantly expanded Empower’s home equity capabilities to deliver robust end-to-end support for both closed-ended and openended home equity products,” said Jerry Halbrook, president of Black Knight’s Origination Technologies Division. “Using Empower, lenders can consolidate the origination of real estate-secured products onto one technology system, helping them gain greater insight into loan opportunities and risks, simplify their compliance efforts, and reduce the costs associated with maintaining disparate systems.”

NEWSFLASH y AUGUST 2016 y NMP NEWSFLASH y AUGUST 2016 y NMP NEWSFLASH y AUGUST 201

CFPB Proposes TRID Updates

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The Consumer Financial Protection Bureau (CFPB) is offering proposed updates to its TILARESPA Integrated Disclosures (TRID) mandate, also known as the “Know Before You Owe” mortgage disclosure rule that took effect last October. In announcing the proposed changes, CFPB Director Richard Cordray did not admit any error in the initial TRID language. Instead, he insisted that the proposed changes would merely “clarify parts of our mortgage disclosure rule to make for a smoother implementation process.” The CFPB is offering four specific changes to TRID: proposed tolerance provisions for the total of payments that parallel existing tolerances for the finance charge and disclosures affected by the finance charge; a partial exemption from disclosure requirements to certain housing assistance loans originated primarily by housing finance agencies; the extension of TRID’s coverage to include all cooperative units; and additional commentary to clarify how a creditor may provide separate disclosure forms to the consumer and the seller. “Realtors have reported challenges gaining access to the Closing Disclosure (CD) ever since TRID went into effect, despite a long history of access to the substantively similar HUD1,” said National Association of

Realtors (NAR) President Tom Salomone. “The CFPB has acknowledged that concern by making it clear that it is appropriate and accepted for creditors and settlement agents to share the CD with consumers, sellers, and their agents. That’s a significant victory that will help Realtors continue to provide the expert service their clients have come to expect. We appreciate the CFPB’s willingness to reconsider the TRID-related challenges our members face and will continue to monitor the progress on this important issue in the months ahead.” “MBA appreciates the CFPB’s efforts to update and clarify certain aspects of the ‘Know Before You Owe’ rule,” said MBA President & CEO David H. Stevens. “This particular regulation has a big impact on both borrowers and lenders, so it’s important that the Bureau and stakeholders continually reassess the implementation process to ensure its effectiveness. We look forward to commenting on the rule, and continuing to work with the CFPB to gain further clarity in order to improve this and other rules and regulations.” The CFPB is seeking comments on its proposed changes by Oct. 18 and is promising that all input “will be weighed carefully before final regulations are issued.”

Brexit Credited With New Refi Boom

Yes, we’re still talking about Brexit’s impact on the U.S. housing market—and in this case, it appears that the decision by U.K. voters to leave the European Union is being credited with fueling a new surge of American refinance activity. According to a data analysis from Black Knight Financial Services (BKFS), the June 23 Brexit vote increased investor interest in U.S. Treasury Bonds, while driving down mortgage interest rates. Within two weeks of the vote, BKFS estimated that 1.2 million borrowers with 4.25 percent interest rates suddenly gained a new incentive to refinance their mortgages. “The reality is that, post-‘Brexit,’ mortgage interest rates declined by about 15 basis points–not significant in the grand scheme of things,” said Black Knight Data & Analytics Executive Vice President Ben Graboske. “But for 2.8 million borrowers with current rates right at 4.25 percent, this modest decline was enough to put them 75 basis points (bps) above today’s prevailing rate, the point at which we consider a borrower to have incentive to refinance. Of these, 1.2 million also meet broad-based eligibility criteria—loan-to-value

ratios of 80 percent or less, credit scores of 720 or higher and are current on their mortgage payments—bringing the total refinanceable population to 8.7 million, the highest level we’ve seen since late 2012.” However, Graboske noted that as home values continue to appreciate, rising home prices are diluting the depth of mortgage savings. “Purchasing a median-priced home today requires roughly 21 percent of the median household income; much less than at the height of the bubble, and below the 2000-2002 average of 26 percent,” he said. “What we need to keep an eye on is what would happen if and when interest rates begin to rise again—especially if sustained low rates continue to fuel home price appreciation as they have. Even if prices stay flat—unlikely as that is—a one percent rate increase would push affordability to 24 percent, while a two percent rate increase would put affordability well above the 2000-2002 average. The question becomes, what is a sustainable ratio in a market where Qualified Mortgage lending is the norm, and student loan and other non-mortgage-related debt is on the rise?” Mortgage Servicers Urged to Enhance Customer Experiences

Mortgage servicers that make the

and cash sales drop to lowest level since the fourth quarter of 2007 (27.5 percent). “The all-time home price highs nationwide and in many local markets are being enabled by historically low mortgage rates— which are falling once again this year,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “It is likely that some of the most interest rate sensitive local markets will see home price appreciation knocked down when the low rate rug is finally pulled out from under the housing recovery. We are seeing signs of weakening appreciation in many bellwether

markets already in spite of the rock-bottom rates.” Indeed, 16 metro areas saw year-over-year declines in median home prices, most notably in Bridgeport, Conn. (down six percent), Allentown, Pa., (down four percent), Columbus, Ohio (down three percent), Houston (down two percent), and Milwaukee (down one percent). Annual home price appreciation in June slowed compared to a year ago in 189 counties out of 349 counties (54 percent) analyzed by ATTOM Data Solutions. continued on page 16

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866 - 453-2400 The national median home price reached $231,000 in June, marking an all-time high, according to new data from ATTOM Data Solutions (formerly RealtyTrac).

© Copyr o y ight i 2007-2016 Carringt a oon Mortga gagge Services, LLC headquartereed at 1600 South Douglasss Roaad, Suites e 110 & 200A, Anaheim, CA 92806. 800 -561-4567. NM MLS ID 2600. Nationwide Mortgage g Licensing e Syst ys eem (NMLS) Coonsumer Access ce websit e ee: www.nmlsc . o onsume erac a cess.org. AZ: Mortggage Bankeer BK-0910745. CA: Licensed by the Department of Business Oversight under the Califor a o nia n Reesidential Mortgage Lending Act,, Fiile 413 0904. CO: Check h license status of yoour mortgage g loan origina i toor at www.dor . a.sta a te.co.us/reale estate/index.htm. e GA: Georgia g a Residential Mortggage Licensee 22721. IL: Illinois Residential e Mortggage Licensee. KS: Supervised Loan Liceense SL.0000313. KY:: Mortgage Loan Company o y Liceense MC211112. MN: This h is not an offer e too enteer into an interest e e rate lock aagreement e under Miinnesota Law. MS: Licensed by the Mississipppi Department of Banking i and Consumer o Financ i e. Mortgage g Lender License 2600. MO: Missouri Compan o y Registration 14 -1746-A. In-State Office: Missouri Residentiall Mortgage g Loan Brok o er e License e 14-1746-A1. 251 SW Noel, Lees e Summit, MO 64063. NV: Mortgage g Brok o er e License e 4068 (Residential Mortgage Lending). NH: Licensedd by the New Hampshire Bankiing Department. NJ:: Licensed by tthe N.J. Department of Banking i and Insuranc a e. NY: Liceensed Moortggage Banker—NY e — S Department of Financ i ial Services. New Yor o k Mortggage Banker e Liceense B500980/1076664. OH: Ohio Mortgage g Brok o eer Act Cer e tificatee of Registr e ation M MB.804213.000; Ohhio Mortggage Loan Act Cer e tificatee of Registr e ation SM.501517.000. OR: Mortggage Lender License ML4886. PA: Licensed by the Department of Banking. RI: Rhode Island s Liceensed Lender, Lender Liceense 20112809LL. VA: Licensed by the Viri gginia State Cor o poration Coommission MC--5382. NMLS ID 2600 (www.nmlsc . onsumerac a cess e .org). g WA: Coonsumer Loan Liceense CL2600. Also licensed iin AL, AR, CT, DE, DC,, FL, ID, IN, IA, LA, ME,, MD, MI, MT,, NM, NC, OK, SC, TN, TX, UT, WV, WI and WY. NOTICE: All loans suubject to credit e , underwriting i and prop o erty approval guidelines. Offered e e loan products may vary by state. The here is no guarant a ee that all borrroweers will qualify. Restricitionss may apply.. This h is not a commitment o too lend.. Terms e m , conditio o ons and programs a are subject too change without notice. This h infor o ma m tion is foor mortgage g prof o eessionals only ly and is not intended e for o distribution i to consumers. Carringt a ri on on Mortggage Servicees is not acting on behalf of or at the direc e tioon of HUD/FHA or any government en agency.y. All rights i reser e ved e.

n National Mortgage Professional Magazine n AUGUST 2016

Median Home Price Reaches New Peak

June’s median home price was one percent above the $228,000 peak set in July 2005. It was also up six percent from May, up nine percent from June 2015 and that 52nd consecutive month when median home prices increased on a year-over-year basis. Thirty-nine metro areas out of the 130 analyzed or this report also recorded all-time high home prices, including Seattle ($385,000), Dallas ($240,156) and Minneapolis ($235,950). June also so distressed sales fall to their lowest level since the third quarter of 2007 (14.8 percent of all single-family homes and condos)

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customer experience a priority will reap the benefits in profits and reputation, according to the J.D. Power 2016 Primary Mortgage Servicer Satisfaction Study. In presenting this finding, J.D. Power warned services against taking customers for granted. “Servicers with a captive audience can often view taking measurable steps that improve the customer experience as an unnecessary investment,” said Craig Martin, senior director of the mortgage practice at J.D. Power. “They aren’t against improving satisfaction, but cost containment is their top priority. The study clearly shows, however, that interacting with customers more efficiently—and more effectively— can reduce costs and increase profit for servicers regardless of the business model, while having the added bonus of improving satisfaction.” The new study cited a reduction in customer complaints (and subsequent inquiries from enforcement-focused regulators), cost-effectiveness, the limiting of portfolio loss and the opportunity to build new business as the key reasons to enhance and solidify the customer experience. The study also advocated the use of a userfriendly website, which could result in fewer calls to live agents as customers seek out answers to their questions online. “Most servicers tend to focus on the complaints they receive, but the truly successful servicers get to the root causes of problems and take a more proactive approach,” Martin said. “They realize better communication and self-service options can help their bottom line by reducing unnecessary calls.” J.D. Power also ranked the nation’s largest servicers on a 1,000-point scale, with Quicken Loans scoring the highest rating with 850 points. Huntington National Bank came in second with a score of 828, while Regions Mortgage ranked third with a score of 810—a 77-point improvement from the 2015 study.

NAMB National The Nation’s Largest Gathering

nmp news flash

continued from page 15

HR 3700 Signed Into Law

of Mortgage Professionals September 24-26, 2016 Luxor Hotel and Casino • Las Vegas, Nevada A Message From NAMB National Committee Chair Nathan Pierce, CRMS

AUGUST 2016 n National Mortgage Professional Magazine n

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he time is near, as thousands of mortgage professionals will soon come together in Las Vegas for NAMB National. NAMB—The Association of Mortgage Professionals cordially invites all mortgage professionals to attend its annual conference, the largest conference and trade show for mortgage professionals. The conference and trade show will take place at the Luxor Hotel and Casino. This year’s conference will focus on three main areas … First, diversifying the loan products that are being offered to your clientele. Second, technology in the mortgage professional is here to stay, have you adapted your business to compete in this new environment? Third, compliance can no longer just be the job of compliance managers. All mortgage professionals are being held to a higher standard, are you conducting business in a manner as to avoid regulatory or criminal action? These three topics will be discussed in multiple breakout sessions conducted by featured industry leaders chosen for their specific areas of expertise. Industry leaders, decision-makers, managers, loan originators, compliance officers, mortgage brokers, correspondent lenders, wholesale lenders, production staff members are all encouraged to attend. Many areas of the country are experiencing a growing housing market, whether it is large or small growth, it can create challenges for any size organization. The challenges often go unnoticed until it’s too late. Now is the time to act and prepare for the next generation of mortgage origination. NAMB National is your opportunity to not only prepare, but, thrive in the exciting mortgage profession. Registration has begun, visit NAMBNational.com or watch for e-mails being sent from various exhibitors offering FREE registration codes. Additional information can also be found at NAMBNational.com. A list of exhibitors can be found there as well, along with the agenda which will be complete within the coming weeks. Check back often for additions that will be added regularly. Don’t miss out on this exciting opportunity to better yourself, better your business, and better the industry, register today!

Nathan Pierce is the chairman of NAMB National, a member of the NAMB board of directors, and NAMB+ president. He is a Certified Residential Mortgage Specialist (CRMS) and president of Advanced Funding Home Mortgage Loans in Salt Lake City, Utah. He can be reached by phone at (801) 272-0600 or e-mail NPierce@AdvFund.com.

SPONSORED EDITORIAL

Without special ceremony or public comment, President Obama has signed HR 3700, the Housing Opportunity Through Modernization Act, into law. Introduced last October by Rep. Blaine Luetkemeyer (R-MO), HR 3700 highlighted a relatively rare example of bipartisan cooperation on Capitol Hill: The legislation passed the House of Representatives in a 427-0 vote and later passed the Senate by unanimous consent. The legislation seeks to modify three areas of federal housing policy: The U.S. Department of Housing & Urban Development’s (HUD) rental assistance and public housing programs, the Federal Housing Administration’s (FHA) requirements for condominium mortgage insurance, and the Department of Agriculture’s singlefamily housing guaranteed loan program. HR 3700 was supported by industry trade groups, although the National Association of Realtors (NAR) took a highly proactive role in pushing for its passage. NAR President Tom Salomone stated that his organization’s members have “reason to celebrate,” calling the law’s passage “a long-awaited victory for NAR and for homebuyers for whom condos are an important and affordable option.”

whether Cordray’s 2012 appointment was legal because that question is currently being considered by the U.S. Court of Appeals for the District of Columbia. The appeals court is currently considering that aspect of the Cordray directorship as part of a case brought by PHH Corp. against the CFPB. Cordray’s appointment came while the Republican-controlled Congress was in a pro forma session designed to prevent recess appointments. The Obama Administration used the recess appointment to elevate Cordray to the bureau’s leadership role after the Senate refused to consider his confirmation. Cordray would be formally confirmed in 2013 after the president resubmitted his candidacy. The challenge before the district court was brought by State National Bank of Big Spring, Texas, which filed suit in 2012. The bank stated that Cordray lacked the constitutional authority to make regulatory decisions. Greg Jacob, a partner in the Washington office of O’Melveny & Myers LLP representing the bank, vowed to appeal the decision. “Judge Huvelle’s holding that Director Cordray could ratify literally thousands of invalid actions, including invalid rulemakings, by publishing three perfunctory sentences with no accompanying process at all cannot be right, and we are confident we will prevail on appeal,” Jacob said. Q1 First Mortgage Originations Total $450.5B

Court Defers Ruling on Cordray’s Legal Authority

A court challenge to the constitutionality of President Obama’s controversial 2012 recess appointment of Richard Cordray to run the Consumer Financial Protection Bureau (CFPB) has been put on hold by a U.S. District Judge. According to a Bloomberg report, U.S. District Judge Ellen Segal Huvelle announced she would not make a decision on

The first quarter of this year saw a health level of positive mortgage activity, according to new data released by Equifax. Between New Year’s Day and March 31, there were 1.86 million new first mortgages, a year-overyear increase of 10.3 percent. The total dollar amount of first mortgage originations the first quarter totaled $450.5 billion, a year-over-year increase of 12.3 percent and the highest amount for a first quarter total since 2013. The continued on page 32

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Time to Re-Focus on the Consumer By Andrew Liput

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here is a memorable scene in the old holiday movie, “It’s A Wonderful Life,” when Jimmy Stewart as George Bailey, president of the Bailey Savings and Loan, welcomes the Martini family to their new home which he just presumably funded for them. He makes a speech on the front steps offers gifts of salt and wine to welcome them. This is what consumers expect from our industry: Personal and caring service at an exciting yet stressful time in their lives. Somehow, I would add, our industry has forgotten to care about the consumer in the quest to sell loans at any cost. The implementation of Dodd-Frank and the birth of the Consumer Financial Protection Bureau (CFPB) were, in part, a legislative effort to make sure we never forget that the consumer is the heart of our business. This is the heart of QM (qualified mortgage) and the ATR (ability-to-repay rule), and the vendor management rules our company helps lenders implement and manage. Today, lenders need to make sure that they develop and implement policies and procedures to ensure that they are consumer-centric. From better quality origination and abilityto-repay safeguards, to vendor management and data privacy and security, lenders are on the hot seat more than ever over how they treat consumers. Some of the key areas which face scrutiny include: l Third-party vendor management, specifically closing agents; l Affiliated business relationships: The affinity relationship between lenders and title agents, lenders and appraisers and lenders and real estate agents is constantly being examined; l Minority inclusiveness: Consumers get the best deal when there is fair competition, free choice, and more choices for services and as HMDA seeks to gather data and explore how lenders make loans to all consumers, there is a movement to ensure that lenders are doing business with vendors owned by men and women of all races and ethnicities; and l Title insurance costs and fees. There have been claims by consumer groups that there is not enough competition and that costs are much higher than the risks being insured, especially in the digital and computer age where property ownership, tax and lien information is readily available and losses from title claims nationwide are relatively small. The key takeaway for lenders is that anyone not making an effort to design their business around the consumer, rather than viewing the consumer as a means to an end, may very well be paying a price for it sometime this year. As George Bailey reminded Old Man Potter, “Borrowers are human beings, not just cattle … they deserve better!”

Andrew Liput is CEO of Secure Insight, a risk analytics firm offering vendor management services addressing settlement agent risk. He can be reached by e-mail at ALiput@SecureSettlements.com.

SPONSORED EDITORIAL

new to market

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research that can be performed through use of the CoreLogic University Data Portal and provide deep insight into the most seismic real estate event of the last 80 years: the mortgage and foreclosure crisis,” said Frank Nothaft, chief economist for CoreLogic. “By expanding the portal, we hope to help economists shape and provide insight into the future of the housing and commercial real estate industries.”

data for more than 150 million U.S. property parcels—representing an expanded footprint that covers 99 percent of the U.S. population. The enhanced data warehouse is more than nine terabytes and contains 13.9 billion rows of data and more than 6,000 discrete data attributes. Data available includes current and historical property tax assessor information, deed, mortgage, foreclosure, environmental risk, natural hazard, CIS Releases New Trended health hazard, neighborhood Data Offering characteristics, and other property CIS has characteristics—all mapped to a announced unique ATTOM ID for each TrendScape, a property. CreditXpert “The new ATTOM ID is an report, that is innovation long-overdue in the real now available with mortgage credit. estate data industry, linking all “TrendScape simplifies trended property-centric data from myriad data,” said Nancy Fedich, CEO of sources to one unique parcel CIS. “Providing TrendScape to our identifier, and it’s just one example clients helps them understand the of how the new ATTOM Data details of trended data in a Warehouse creates value for our summarized, one-page snapshot, customers and elevates our delivered instantly on each industry” said Rob Barber, CEO at applicant.” ATTOM Data Solutions. “Under the TrendScape describes revolving new ATTOM Data Solutions brand, balance movement, clarifying if the our mission as a company will applicant’s debt-level is static, continue to be increasing real increasing or decreasing, an estate transparency for businesses important risk-factor revealed by and consumers. That mission will trended data. In addition, a summary be carried out in a variety of of payment behavior on revolving venues, including bulk file and installment accounts is shown, licenses, APIs and customized another component of trended data, reports, along with our increasingly uncovering the applicant’s tendency popular consumer Web sites.” to pay extra, pay the minimum Construction of the ATTOM amount or pay account balances in Data Warehouse kicked off in 2015 full. with the addition of newly sourced “At CIS, we are celebrating 30 tax, deed and mortgage data years in business in 2016, a creating a full, national public milestone that has been fueled by record footprint. This newly CIS leading the industry with aggregated data—along with an products and services that address ongoing integration of more than dynamic client need and market 40 categories of neighborhood challenges,” said Fedich. “The and parcel risk data—prompted TrendScape integration is an the development of an innovative example of that leadership.” data warehouse solution. The ATTOM Data Warehouse RealtyTrac Launches ATTOM fuels predictive analytics and Data Warehouse Property machine learning developed by Database Audantic, a Seattle-based company that provides top-tier real estate investors—those typically purchasing about 100 homes a year—with marketing lists RealtyTrac has unveiled a new multi- of homeowners likely to sell. sourced national property database “We’ve tried to source national named the ATTOM Data Warehouse property data from many places, that will be curated by ATTOM Data and the ATTOM Data Warehouse Solutions, a newly created parent is head and shoulders above the company operating a rapidly rest,” said Franklin Sarkett, CTO of expanding property data licensing Audantic, which has grown from business along with existing just two clients in 2014 to now consumer Web sites, having clients in more than 200 RealtyTrac.com, Homefacts.com and counties. “Without the data we HomeDisclosure.com. wouldn’t have a business.” The new ATTOM Data Warehouse features enhanced and standardized continued on page 48

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NAMB President’s Message: August 2016

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This will be the message many of you will be reading at NAMB National in Las Vegas. Our annual convention is the beginning of the new year and a time for reflection on the past. This last year has seen NAMB grow strongly and partially regain lost ground from the dark years. Membership, financials and the mortgage industry overall have all increased. The mortgage profession is doing so well that we can return our annual dues to the old rate which was reduced to enable our members to stay during the times of reduced revenues. Our Government Affairs Committee has the tools to keep our members informed and to get our message to our legislators. The Education Committee is researching new classes to keep our members up-to-date on the latest regulations, sales techniques and new technologies. Membership is reaching out to show the true value of NAMB membership, as well as helping those states whose associations fell by the wayside. The Communication Committee is working on a five-minute short that will run on PBS regarding the benefits of working with an NAMB member who is certified and sporting the Lending Integrity Seal of Approval. Our Wholesale Summits have been a true success in working with our lending partners to better grow the third-party origination channel, as well as get the entire industry to work better for all participants. Attendance at our conventions have increased so much that we need to find larger venues to accommodate these growing numbers. By the time you read this, we should have a new site for NAMB National in 2017. In partnership with our industry partners, we will be rolling out a “Kickstart Program” to help bank loan originators open up small business broker offices. NAMB has accomplished a great deal, but we have much to do in the coming year. If you have any requests or want to help out, contact incoming president Fred Kreger (Fred.Kreger@APMortgage.com) or me (RAndrews@LendingArizona.net) and we will be happy to point you in the right direction. Committees need workers, conventions need attendees and our Political Action Committee (PAC) and Legislative Action Fund (LAF) need contributions. If you don’t have time to volunteer, please donate and we will put your funds to good use to further our members’ interests in Washington, D.C., as well as locally. NAMB has come a long way due to the efforts of its members and volunteers, and as always, our strength remains in our members. Keep NAMB growing strong. Sincerely, Rocke Andrews, CMC, CRMS, President NAMB—The Association of Mortgage Professionals RAndrews@LendingArizona.net • JOINNAMB.com

The CEO Perspective A Message From NAMB CEO Donald J. Frommeyer As you are receiving this issue prior to our 2016 NAMB National conference, I just want to say that I cannot wait to see you all in Las Vegas. I can remember back in 2010 and 2011 when we had 200-plus attendees at our annual conventions. I can also remember having 4,000 to 5,000 attendees in Las Vegas every year for NAMB West. We really have come a long way these past few years to the point that we should have about 3,000 attendees on hand for

NAMB National 2016. NAMB’s Membership Committee is also going the extra step this year that all members who come to NAMB National will get a memento for being there, courtesy of the Membership Committee. You will have to get there and attend, but it is really neat and it is a NAMB member-only item. There will also be an NAMB double booth in Vegas and you need to visit it. Again, the Membership Committee and the Legislative Action Committees are running another raffle. So stop by and if you are not a member, now is the time to join. NAMB has grown by leaps and bounds over the past six years. I can remember back in 2007 when we had a membership contest and NAMB had more than 25,000 members. Now, we have 5,000 members. The ironic thing about this is that even though 5,000 people continue to be members of the association, NAMB still represents the other 105,000 licensed mortgage originators in the United States. This is due to the excellent leadership that we have had over the past 43 years. One of the items I am going to work on this year is getting the Past Presidents Committee up and running, and keeping NAMB’s past presidents and their historical value coming back to assist with the current board. Currently, we have a few who come back for most of the events and it is always great to see them. My goal would be to have a reception at NAMB East for all of the attendees to mingle with these past presidents who have been so instrumental in the life and times of our association. The facts have shown that as a member of NAMB, you are more informed, more educated and more knowledgeable about what is going on in the mortgage business arena than those who are nonmembers. As an NAMB member, you can take part in Webinars developed to make your life easier as a mortgage loan originator. You can get discounted prices on education opportunities, and you receive weekly reports about what is going on with “News From NAMB” and the “Monday Morning Messenger.” So stop by NAMB’s double booth at NAMB National and meet some of your new friends at NAMB and join today … you will not regret it!!! Donald J. Frommeyer, CRMS is chief executive officer for NAMB—The Association of Mortgage Professionals. He may be reached by e-mail at NAMB.CEO@NAMB.org.

NAMB’s Education Corner: Mortgage Professional Certification By Bob Sweeney, CRMS During the past several Wholesale Summits sponsored by NAMB, our wholesale partners requested that NAMB take the lead role in promoting and offering education and certification for all mortgage professionals. It became very clear that they wanted NAMB to create a certification for account executives and offer continuing education and pre-licensing classes to all mortgage professionals in states where NAMB state affiliates were not offering classes. The Education Committee has started the AE Certification process and is currently working with another education provider for content for the 20-hour SAFE and eight-hour CE classes. A suggestion was made to our wholesale partners that we adopt the General Mortgage Associate (GMA) or Certified Residential Mortgage Specialist (CRMS) Certification Exam as the basis for the AE Certification. At the most recent Wholesale Summit in February, we distributed the CRMS Exam Specifications, asking for input from our wholesale partners. The result was to offer our current GMA Certification instead of the CRMS Certification. As a result, the Education Committee is working on accomplishing this by the end of 2016. Why the certification for account executives and mortgage

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professionals? Guy Schwartz, CMC, NAMB’s Certification Committee Chair, said it best: “Across the United States, and in a wide range of occupations, certification programs have enabled professionals to distinguish themselves from the competition. As the number of certified individuals has increased, customers and employers have learned to look for credentials when choosing a business partner. By meeting the stringent eligibility standards, passing the rigorous exam, satisfying the recertification requirements, and adhering to the NAMB Code of Ethics, the GMA, CRMS or CMC certification will enable you to prove your skill and promote your business. “There has never been a better time for mortgage professionals to seek certification for a number of reasons. Our industry is under increased scrutiny and it is important for those of us who are true professionals to conduct business with honesty and integrity, putting the best interests of our clients at the forefront of all we do. This year, NAMB is working to raise awareness of our credentialing programs to NAMB members, other brokers, and our industry partners. There is no doubt—certification will benefit you professionally.”

Bob Sweeney, CRMS is sales manager/recruiter at CrossCountry Mortgage, is director on the board of directors for NAMB–The Association of Mortgage Professionals and serves as NAMB’s Education Committee Chair. He can be reached by phone at (317) 625-3287 or e-mail Bob.Sweeney46@yahoo.com.

Linda McCoy, CRMS of Mortgage Team 1 Inc. in Mobile, Ala. is a member of the NAMB board of directors. She may be reached by phone at (251) 650-0805 or e-mail Linda@MortgageTeam1.com.

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NAMB National in the East in 2017

By Linda McCoy, CRMS

Last year, we had our first ever NAMB East conference at Hilton Head in South Carolina. NAMB was trying to bring a great conference to originators in the Eastern part of the United States because we have been so successful in the West. Many NAMB members thought the conference in the West was just for the West. Both conferences are for all NAMB members. We were very excited about the opportunity to have two conferences in 2016, but had very little time to plan the event at Hilton Head since it was already October before we got started. We had a great first year, but want to make it better each year. We sent out surveys to gauge what people liked or disliked and what they thought we could improve upon. The biggest concern was that it was a little difficult to get into Hilton Head, so we have solved that issue. The next concern was that there was not enough time for the vendors on the floor of the Exhibit Hall to visit with the originators and attendees. They stated they were in direct competition with the

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Interested in taking the next step in your career? NAMB will be offering an NAMB Certification class at NAMB National this year. NAMB established the GMA, CRMS, and CMC certifications to provide members with the opportunity to be recognized as leaders in mortgage brokering. This class will help prepare applicants for final testing. It will be held Monday, Sept. 26 from 9:00 a.m. to Noon. If you haven’t used a Discount Code already, enter “NAMBCERT” in the Discount Code field on the registration form for NAMB National located at NAMB.org. The instructor for the class will be our current President Rocke Andrews, CMC, CRMS. We welcome any input from all mortgage professionals. If you would be interested in joining the Education Committee please feel free to contact me. If you are not a member, now is a great time to become a member. Go to your state affiliate Web site or NAMB.org and join as a Professional Member.

classes and speakers. We have worked out a schedule that we hope will make everybody happy for 2017. We should have plenty of time for both education and time to visit with the exhibitors. Finally, those surveyed wanted more originators to attend our conference. We started planning early this year, and I am happy to tell you that Atlanta, Ga. Will be the site for NAMB East 2017, set for Thursday-Sunday, March 16-19, 2017 at The Omni Atlanta Hotel. We have looked far and wide for that perfect place for our conference and The Omni is an AAA Four Diamond Hotel within the CNN World Headquarters. You will be within walking distance to countless city attractions in Atlanta, from the renowned Georgia Aquarium, to the World of Coca-Cola Museum and Centennial Olympic Park directly across the street. I cannot wait to get there and go up to the Latitudes Bistro Bar and look out over beautiful Olympic Park and Atlanta skyline. There are so many things to do in Atlanta. Did you know that they have an Underground Atlanta just waiting for you? It is called the “City Beneath the Streets,” full of shopping and entertainment. They have some of the finest restaurants in the world in Atlanta, and an airport that anybody can easily fly into from any location. Now, I need originators there, and that is where you come in. I need to know what is going to get you fired up so that you will want to attend. I will have a sign-up sheet at our NAMB booth in Las Vegas at NAMB National, so don’t forget to mark your calendars today!

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getting toknow BOB SWEENEY, CRMS Director of NAMB B Y

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22 hen it comes to mortgagerelated business education, Bob Sweeney, CRMS is an indefatigable spirit. “I have a passion for teaching,” said Sweeney, a Carmel, Ind.based sales manager/recruiter at CrossCountry Mortgage who was elected last October to a threeyear term on the board of the directors for NAMB—The Association of Mortgage Professionals. Sweeney is one of only two Certified Residential Mortgage Specialists (CRMS) in the state of Indiana and is also a NMLS Certified Trainer. He is also certified by the Indiana Board of Realtors to offer continuing education credits to the state’s real estate professionals. On his LinkedIn page, Sweeney defines his business philosophy in these terms: “Always have a positive attitude, work hard, stay motivated and set high goals for yourself.” National Mortgage Professional Magazine visited with him to learn more about his distinctive role within the mortgage world.

Was the mortgage profession your original career path? And if not, how did you get involved in this industry? It was not. I have a BS in accounting from Seton Hall University in New Jersey. I owned a couple of companies–primarily in the trucking industry–but those companies closed. As I was networking, a friend of mine invited me to become a branch manager for a mortgage company. I jumped right in without any hesitation. When did you first get involved with the mortgage industry trade associations? I became involved with the Indiana Association of Mortgage Brokers back in 1997. I was working in wholesale lending, but during that time, the state association would not allow wholesalers on their board. The Indiana association has since been disbanded, and I became a director on the NAMB board in October of 2015. I am also the chairman of NAMB’s Education Committee–this was my first opportunity to be involved with NAMB. As the chairman of the Education Committee, what are your primary goals?

This year, we are focusing on creating a portal that will provide resources for existing and possible new members. As you are aware, NAMB is an NMLS provider, and through this portal, our members will have access to the 20-hour SAFE Act class and an the eighthour CE class. We are never going to attract new members unless we have more to offer. We are aiming to make more resources available through NAMB–we want to become their first choice for mortgage education for mortgage professionals nationwide.

the brokers were blamed for everything. Also, this is a very commission-based industry. If you are bartending or serving tables, there is a good chance that you could be making more money than being in the mortgage business. Plus, we have very few mentors in this business. We say that we do, but we don’t. No one has the time to spend with these young professionals. It is very different now–to get into the mortgage business, you not only need to know the rules and regulations, but you also have to possess social media and marketing skills.

The future of the industry depends on having a next generation of mortgage professionals. Do you see a new wave of Millennials entering the profession? I do not see that, and that is a major concern of mine, because the average age of originators today is 55-plus.

Also, today’s new mortgage professionals require a great deal in terms of educational training before they can begin working. Is it appropriate to say that many young people are not comfortable with that level of occupational learning? Today’s regulatory and compliance requirements are overwhelming. I teach 20-hour and eight-hour classes. There are so many crossovers between these classes that it is very, very intimidating. It is hard work, and a lot of people just don’t like hard work. It would be helpful if we could

What do you feel is holding back young people from entering mortgage careers? A lot of that can be traced to the bad press that the mortgage industry–especially on the broker side–got in 2007 and 2008, when

N A M B get mortgage education into the institutions of higher learning– whether it is a technical school curriculum, community college or a university curriculum. Why aren’t colleges or tech schools teaching this as part of their curriculum? Because no one has presented the idea to them. But this is about to change. My goal is to approach some of these institutions this year and get them thinking about offering a mortgage curriculum.

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members that do not attend the NAMB conferences. NAMB has 5,000 members, but not everyone gets exposure to the great partners and vendors that we have–through the Webinars, we have been able to make that connection.

What has the attendance been for this summer school Webinar series? The most we’ve had is 40 for a Webinar, and as few as 20. But, also, we are doing this during vacation time. We have eight more Let’s return to NAMB … what Webinars scheduled for the has the association been doing balance of the summer, and we to expand educational outreach? anticipate greater attendance. NAMB has been awesome. The association has been running a What future would you like to weekly Webinar series this see for the mortgage summer–it began in June. I met profession? with incoming NAMB President I would love to see more Fred Kreger and mortgage independent mortgage companies. industry educational specialist There used to be 500 brokers in Ginger Bell to get vendors Indiana, but now there are less involved in this endeavor. We are than 90–and nearly half of them working to get our partners more are one-man shops. Unfortunately, exposure because there are many regulations and compliance

requirements have forced many out of the business, but I see more independent mortgage companies rebounding in the next few years. How do you see the near-term rate climate? When I first started in this business, my mortgage was around 14 percent to 15 percent. When I hear people complain that rates may go to four or five percent, it is a non-event for me. During your years in the mortgage profession, what do you feel have been some of your biggest challenges? My greatest challenge came after I had been with Union Federal Bank, Wholesale Division for 15 years. I thought that would last forever, but they were acquired

by American Home Mortgage, which went bankrupt a year later. Afterward, I went through a number of jobs after August 2007. It was very, very difficult to find the right fit for a while–I had to many jobs on my resume, which did not look great, but there were many other people in the industry that also had that same situation. The outlook is much improved now. Outside of work, how do you spend your leisure hours? I have six grandkids, and everyone is involved in sports. My wife and I–we have been married 47 years– never miss any of their games, although sometimes have we split up in order to go to every baseball, basketball, soccer, softball or volleyball game. Thank goodness all of the grandkids live a few miles from us.

Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at PhilH@NMPMediaCorp.com.

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NATIONAL 2016

September 24-26, 2016 Luxor Hotel and Casino l Las Vegas

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Agenda at a Glance

AMB National 2016, presented by United Wholesale Mortgage (UWM), delivers hands-on knowledge for all attendees, exceptional sessions with some of the leading regulatory officials in the nation, opportunities to expand your business with our many exhibitors and sponsors, and a wide array of special networking opportunities that add a dash of fun to your experience. Note that the Agenda as it stands now is subject to change.

Friday, September 23 1:00 p.m.-4:00 p.m. Exhibitor Setup 6:00 p.m.-8:00 p.m. NAMB Board of Directors Meeting Directors’ Room

Saturday, September 24 9:00 a.m.-Noon NAMB Delegate Council & NAMB Annual Business Meeting Galleria A 9:00 a.m.-11:00 a.m. Exhibitor Setup Noon Exhibit Hall Opens 1:00 p.m.-1:45 p.m. Concurrent Sessions

Compliance Track—Sponsored by FBC mortgage The New Loan Advisor Suite: A Hands-On Workshop Egyptian Room Freddie Mac Loan Advisor Suite launched this summer. Learn how this flexible, integrated, end-to-end technology solution will give you more confidence that you are producing high-quality, low-risk loans. Discover how these intuitive, easy-to-use tools will increase your profit margins and efficiency by lowering your origination costs and reducing your risk of repurchase. Take a walk-through a live demonstration of how the new suite works. Marketing Track—Sponsored by Lending Home Economic Trends in the Industry Nile Room B Presented by Rey Maninang, SVP and National Sales Director, Wholesale at Carrington Mortgage Services Economic trends, for the most part, have been favorable to the housing industry recently, but what does that mean for mortgage originations? Keeping track of these trends and how they affect the industry as a whole, as well as mortgage brokers in their markets, is critical for success. Learn directly from one of the top wholesale lenders in the Industry about what’s happening right now across the country so you can be armed with knowledge about trends that may affect your business.

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Innovation Track—Sponsored by Reverse Mortgage Funding Turn Trash Into Treasure–Producing Profits With Private Lenders Nile Room C Presented by Jeffrey Tesch, Managing Director of RCN Capital Stop throwing money in the trash! With private lending, you have profitable solutions for deals that don’t fit traditional guidelines. Jeffrey Tesch, managing director of RCN Capital and a renowned authority on private lending, will show you how to make money from your most commonly overlooked leads. Learn how private lenders can turn your simple referrals into thousands of extra dollars. Find out how to best present yourself and your borrower to a private lender. See real life scenarios of brokers that have transformed commercial loan inquiries into cash with little to no effort. If you want to master the art of private origination, don’t miss this session! The Evolving Non-QM Market: The Challenges, Opportunities and Growing Role of Non-Bank Lenders Nile Room A Presented by Matthew Ostrander, Chairman and CEO of Parkside Lending LLC This session will review the pros and cons of the evolving non-QM market and review some case histories that will offer some perspective on how far we’ve come and where non-QM is heading. We’ll also review the emerging roles of important stakeholders including regulatory bodies, ratings agencies, and non-bank lenders. By the end of this session, attendees will have a good sense of where the non-QM opportunities are and who is best positioned to realize non-QM success.

3:00 p.m.-3:45 p.m. Concurrent Sessions Innovation Track—Sponsored by Reverse Mortgage Funding The New Subprime Nile Room A Presented by Tom Hutchens, SVP Sales & Marketing, Angel Oak Mortgage Solutions Tom Hutchens, senior vice president of Sales & Marketing with Angel Oak Mortgage Solutions will discuss the difference between the sub-prime of the crash and the new sub-prime of today. Today’s sub-prime loans are responsible and safe, and comply to all legal regulations. The client’s ability-to-repay (ATR) is the most important factor in the underwriting decisions made on today’s subprime loans. As rates continue to increase, alternative lending will become the industry’s new normal. Marketing Track—Sponsored by Lending Home Prepare Your Business for the Future by Getting Into Reverse Nile Room B Presented by Reverse Mortgage Funding Accessing home equity has become increasingly important in today’s world, where traditional sources of retirement income are not always sufficient, as people continue to live longer and spend more time in retirement. Home Equity Conversion Mortgages (HECMs)—commonly known as reverse mortgages—are quickly becoming a necessary building block for retirement funding. If you’re not yet offering reverse mortgages as part of your product mix, you’re missing out on an important and rapidly growing market: Customers age 62 and older. Every day, more than 10,000 Baby Boomers turn 65 years of age. Find out how today’s redesigned reverse mortgage products can

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Marketing Track—Sponsored by Lending Home Rethinking Mortgage Marketing With Technology Nile Room C Presented by Josh Stech, Founding Partner and Head of Business Development, Lending Home Today’s post-recessionary mortgage market is begging for technological innovation. Traditional banks don’t have the incentive nor flexibility to rise to the challenge. Millennials, the next tidal wave of borrowers, are fed up with the status quo. Nearly half are counting on tech start-ups to overhaul the way banks work and 73 percent would be more excited about a new offering in financial services from Google, Amazon, Apple, PayPal or Square than from their own nationwide bank. They are embracing a financial services overhaul by turning to online marketplace lenders to refinance their credit cards, student and small business loans. The last domino is about the fall: home loans. LendingHome is creating a tech-first mortgage marketplace to offer borrowers, brokers and lenders a transparent, speedy and fair-priced place to do business. Join Josh Stech, LendingHome’s founding partner and head of business development, as we take a glimpse into the future of mortgage.

Compliance Track—Sponsored by FBC Mortgage Don’t Overlook Your Most Influential Mortgage Customers Nile Room A Presented by Wendy Peel, VP at ReverseVision & Bob Talpas, Account Manager at ReverseVision If you are not offering home equity retirement solutions, your competition will. That’s why now is the time for you to take a closer look at the Home Equity Conversion Mortgage (HECM) products and how they can impact your bottom line. Wendy Peel, VP at ReverseVision and Bob Talpas, account manager at ReverseVision will set you on the path of understanding how you can meet many of your current customers where they are in life, retain them with a new loan and keep them as life-long clients. At this session, you’ll learn about: Explosive customer need; perceived reputational risk; HECM 101; and getting started in the reverse mortgage world.

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2:00 p.m.-2:45 p.m. Concurrent Sessions Industry Leading Strategies to Increase Your Market Share Today! Egyptian Room Presented by Mat Ishbia, President and CEO of United Wholesale Mortgage (UWM) Join Mat Ishbia, president and chief executive officer of United Wholesale Mortgage (UWM), the top wholesale lender in the nation for this high-energy presentation built around championing your success. Mat will share strategies from top originators nationwide that can be put into action and start accelerating your business immediately. Championing the success of independent mortgage professionals and helping you better serve your clients is his top focus.

Innovation Track—Sponsored by Reverse Mortgage Funding Renovation Lending 101 … And Beyond Nile Room B Presented by Damon Richardson, Renovation Lending Specialist, REMN “Yes, I have heard all about renovation lending, but it’s not applicable to my market or business.” If this has ever gone through your mind, you are missing out on a huge opportunity. During this session, we will discuss why renovation lending is a tremendous tool that will new heights, and how you will be able to incorporate it into your business to: Generate more powerful referrals; strengthen your realtor relationships; cultivate new referral sources; and convert more of your existing opportunities. Damon Richardson, renovation lending specialist at REMN, will cover all of these topics as well as the standard procedural information regarding the FHA 203(k) program, the Fannie Mae HomeStyle program, and the enhancements added to the HomeStyle by HomeReady.

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help close more loans with this new generation of retirees—with attractive home purchase loans, mortgage refinancing, and HELOC alternative options designed specifically to meet their needs. You’ll learn more about reverse mortgage products, and how turnkey origination platforms make it easy to enter the reverse mortgage business and increase revenue. Compliance Track—Sponsored by FBC Mortgage Examination Survival—Avoiding the Personal Foul Egyptian Room Presented by Bob Niemi, Senior Advisor, Baker Hostetler LLP This session will look at ways to make it through your regulatory exam—including origination, sales management and compliance—focusing on important Do’s and Don’ts, as well as management practices to avoid the big fouls. Bob Niemi is a senior advisor with Baker Hostetler LLP, providing lessons from his unparalleled background and experience. Bob joined Baker after serving as the Deputy Superintendent for the Ohio Division of Financial Institution for almost four years. In addition to overseeing the non-depository lenders operating in Ohio, Bob served as NMLS Ombudsman for 2014 and 2015 helping industry users, trade associations and regulatory agencies work toward modern and efficient regulation. Bob has been industry advocate for more than 25 years and recognized mortgage sales leader earning multiple president’s club designations.

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Making the Most of Your Appraisal Management Company Nile Room C Presented by Michael Tedesco, President, Appraisal Nation This program will help you better understand the workings of appraisal management companies and improve your ability to comply with current appraisal regulations. Appraisal issues cannot be solved with a “one size fits all” approach. In fact, appraisal regulations and compliance are much more about safety and soundness than they are about detailed and specific mandates often required by other regulations.

4:15 p.m.-5:00 p.m. Concurrent Sessions How Fannie Mae Tech Solutions Can Help You Grow Egyptian Room Presented by Christy Moss, Senior Account Manager, Industry Partner Solutions, Fannie Mae Join Christy Moss, senior account manager for Industry Partner Solutions to hear how Fannie Mae’s technology solutions power your entire mortgage business, from underwriting to delivery to servicing. The competitive advantage to grow your business, reduce risk and lower expenses. The session will review several important topics: Enhancements to DU 10.0, including trended credit data and other changes to support today’s lending environment; and Fannie Mae’s technology solutions and how they bring efficiency to the marketplace. Innovation Track—Sponsored by Reverse Mortgage Funding Everything You Wanted to Know About Online Mortgage Origination But Were Afraid to Ask Nile A Room Presented by Adam Stein, President, LoanTek, a division of Bankrate This session is a high level primer covering the essential information you need to know if you’re looking to originate mortgages online. Participants will learn the various methods of online consumer aggregation, what technologies may be required based upon their approach, anticipated timelines for results, and the methods for measure and improving success rates. A fun and interactive class “Everything You Wanted to Know” is guaranteed to provide insights to help you grow

your business online. Instructed by Adam Stein, a 20-year veteran of online mortgage origination and president of LoanTek, a division of Bankrate. Marketing Track—Sponsored By Lending Home BYOB–Building Your Origination Business Nile B Room Presented by Steve “That MI Guy” Richman Join Steve “That MI Guy” Richman for his seminar, BYOB– Building Your Origination Business, presented by Franklin American Mortgage Company, a practical approach to knowing what you need to know and doing what you need to do to succeed in today’s market. In this interactive session, you will learn: The differences between being a vendor and a partner and which one works best; transactional and relationship based sales, and when to use which; the number-one most asked question in the country and how to answer it; three news sources everyone needs to know; three things every customer wants from you and four things every customer wants from your company; nine super cool apps for Realtors and loan officers; and much more! Compliance Track—Sponsored by FBC Mortgage Navigating Upcoming HMDA Reporting Requirements and 1003 (URLA) Changes Nile C Room Presented by FBC Mortgage Join us for an informative session on changes required for the 2015 HMDA Rule implementation, including a complete re-vamp of the 1003 URLA form proposed by the agencies. Who will be required to report based on the 2015 HMDA Rule? What system changes do you need to report the additional data points required? What will the new 1003 look like? Is it really going from four pages to 10-plus? How will this impact POS origination? 5:00 p.m.-6:00 p.m. Opening Reception in Exhibit Hall Exhibit Hall Reception Drinks, sponsored by Caliber Home Loans

Sunday, September 25 6:00 a.m. NAMB Legislative Action Fund Golf Tournament Royal Links Golf Club 11:30 a.m. Exhibit Hall Opens 11:30 a.m.-1:00 p.m. Lunch Available in the Exhibit Hall Luncheon ticket necessary for this event. 12:45 p.m.-1:00 p.m. Swearing in of the NAMB 2016-2017 Board 1:00 p.m.-2:00 p.m. Keynote Presentation: David Silberman, Deputy Director, CFPB Egyptian Room Appointed in January 2016 to the second highest post at the Consumer Financial Protection Bureau (CFPB), David Silberman is a critical executive at the crux of this powerful regulatory agency. Join us as he gives NAMB National attendees an insider look at the latest issues before the CFPB. Prior to joining the CFPB in 2010, Silberman served for 12 years as general counsel and executive vice president of Kessler Financial Services, a privately-held company focused on providing advisory services in developing and marketing financial service products through distribution partnerships. Silberman’s

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involvement with consumer financial services began when, as deputy general counsel of the AFL-CIO, he created and then served as president and chief executive officer of Union Privilege, an arm of the AFL-CIO responsible for sponsoring and overseeing the delivery of financial services to union members. Silberman began his career as a law clerk to Justice Thurgood Marshall and then as a member of the law firm Bredhoff & Kaiser. Mr. Silberman is a graduate of Brandeis University and Harvard Law School. Please note … seating for this session is extremely limited, and provided on a first-come, first-served basis. 2:00 p.m.-2:45 p.m. Concurrent Sessions Marketing Track—Sponsored by Lending Home How to Succeed in a Volatile Rate Environment Nile Room B Presented by Matthew Ostrander, Chairman and CEO of Parkside Lending LLC It has been many years since we have experienced a material increase in mortgage rates. While higher rates are never inevitable, it is always good to be prepared for higher rates and the impact that could bring to the industry and borrowers alike. However, will that actually happen or will we see feedback loops from a globally connected economy in our new big data world? What forces are driving rates and volatility of those rates? How may you navigate the moves so that your business thrives in any rate environment? What does volatility mean for the consumer and for you? This session will address what to expect if mortgage rates are volatile in 2016, and what mortgage professionals can do to be prepared for such an environment. Industry volume, investor demand, and product development are all expected to adjust with any shift in the yield curve. Get an inside look at how industry leaders are preparing for risks and opportunities that may present themselves in a volatile rate environment.

27 Innovation Track—Sponsored by Reverse Mortgage Funding Success Secrets You Can Profit From Nile Room C Presented by David Schroeder, Vice President, Quicken Loans Mortgage Services The mortgage industry is evolving rapidly through a convergence of technology, legislation, and demographics. The story of evolution is one of adaptation or extinction. In this session, we’ll discuss six critical elements to success in this brave new world–integrity, client obsession, technology, clarity, people and partnership. We’ll be digging in with specific case studies and actionable strategies for immediate implementation. Compliance Track—Sponsored by FBC Mortgage The Evolving Role of Technology: What You Need to Know to Reach the Next Generation of Borrowers Egyptian Room Presented by LDWholesale’s Jeff Walsh, President; Rich Hernandez, Vice President of Business Innovation; and Brittany Hurd, Director of Marketing As technology continues to evolve, so does the way we do business. Today’s tech-savvy lending environment calls for attention to emerging trends such as self-help service, instant communication, and managing digital relationships. Millennials, who make up the largest generation since Baby Boomers, are now of home-buying age. Their spending power is expected to rise significantly in the next 10-20 years and is likely to set the tone for future housing market trends. How will you reach the next generation of homebuyers? Join us to discuss how developing trends in technology impact the mortgage industry. Some of the topics we’ll explore include digital strategies, internet usage, and mobile dependency. This session will also examine the evolution of various marketing channels and business applications through time, and what you can expect to see in the future of mortgage.

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Innovation Track—Sponsored by Reverse Mortgage Funding The Keys to Building Successful Technology Partnerships Nile Room C Presented by Tate Kesner, National Sales Supervisor, Calyx Software Technology is an integral part of our day-to-day business activities. So building a strong relationship with your technology providers is essential to continued success. This dialogue, led by Tate Kesner, national sales supervisor with Calyx Software, will examine the key elements needed to build the best partnerships with your technology provider, including longevity, diversity, depth of knowledge, support, educational offerings, flexibility, affordability and capacity to allow you to grow.

3:00 p.m.-3:45 p.m. Concurrent Sessions Marketing Track—Sponsored by Lending Home Moving Forward With Reverse Nile Room A Presented by Tabatha Addison, Vice President of Business Development & Training, American Advisors Group This engaging and interactive session will introduce you to the new reverse mortgage product and highlight why now is the time to “Move Forward With Reverse!”

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Compliance Track—Sponsored by FBC Mortgage What’s in Store for Appraisals–And What Lies Beyond TRID? Nile Room A Presented by Michael Simmons, Senior Vice President, Axis Appraisal Management Between Dodd-Frank, the new AMC rules, and the implementation of TRID, the mortgage industry faces everincreasing challenges. Perhaps the biggest challenge is a troubling lack of clarity from regulators around how to interpret these ground-shifting rules. Spend this session to look at what lenders, regulators and AMCs believe is in store for us all. This will be a great opportunity to ask your own questions about the changing landscape we all face … and hopefully come away with some empowering answers.

Peak Performance: How to Increase Your Business by 80 Percent in Eight Weeks Egyptian Room Presented by JMAC Lending, Dr. Kerry Johnson Top mortgage sales producers today are challenged with high rates and clients who want to wait. Yet you now need to improve your sales skills to steadily increase your income. The mortgage business is now about relationships, rapport and trust. According to the MBA, only 17 percent of the loans closed this year were with the last lender. To survive in any market, you have to develop relationships with your best clients and leverage them to new originations. Presented by JMAC Lending, Dr. Kerry Johnson is an international speaker at mortgage conferences around the world. He is also the best-selling author of six books including, Sales Magic, Mastering the Game, and Peak Performance: How to Increase Your Business By 70 Percent in Six Weeks. He writes frequently for many magazines in the mortgage business.

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Close More Loans in 2016 With Risk-Based Pricing Nile Room B Presented by Kim Schubert, Vice President of Sales Solutions, Arch MI In a challenging 2016 marketplace, brokers need to stand out! How will you compete successfully for mortgage business and earn repeat referrals? Being able to offer your clients more affordable mortgages could be the competitive advantage that sets you apart. Kim Schubert, VP of Sales Solutions at Arch MI, introduces the new RateStar solution and explains how its risk-based pricing model for mortgage insurance (MI) can help you lower the monthly payment for qualifying borrowers. 4:00 p.m.-4:45 p.m. Concurrent Sessions Marketing Track—Sponsored by Lending Home Adding Renovation Loan Programs to Your Arsenal Nile Room B Presented by Ragen Cunningham, National Renovation Lending Manager, Plaza Home Mortgage It’s time to increase your product offering and marketability with an out-of-the-box mortgage program like renovation lending. In such a competitive marketplace, we are all looking for something that will help our business to stand out. In this engaging session, you will learn how to: Identify the advantages and unique features of these loan programs; understand how these programs fit in the current marketplace; and educate your borrowers on key aspects of the program, so they can make an informed decision and investment.

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Innovation Track—Sponsored by Reverse Mortgage Funding Mobile Millennials—How to Catch a Unicorn Nile Room A Presented by Ryan Leopold, Co-Founder, Mortgage Mapp Forecasting the future of the mortgage industry may be difficult, but one this seems certain: The millennial buyer will be a driving force for the housing market for years to come! But make no mistake, these customers aren’t going to show up on your doorstep with bank statements, tax returns and a cashier’s check in hand ready to sign. Millennials customers don’t do things the way their baby boomer parents did. You’re going to have to find these buyers, and to do that, you’re going to have to try a few new tactics! Compliance Track—Sponsored by FBC Mortgage Three Overlooked Tips That Could Save Your Company Millions in an Audit Presented by David Luna, President, Mortgage Educators and Compliance David Luna, president of Mortgage Educators and Compliance, will deliver this information-packed update on the latest information on trended credit data. The credit agencies are saying trended credit data is the biggest change to the mortgage industry in the last 25 years. Fannie Mae’s DU 10.0 roll out Sept. 26 and will require mandatory use of Trended Data (TD). Questions such as: What is Trended Credit Data and how it will affect your loans will be covered in the update? Is this good for my business/borrowers/buyers? How will a borrower with a 750 credit score possibly be denied due to trended credit data? Do I have to use TD on my credit reports? Will pricing go up? Why is the industry moving in this direction? These and other questions will be covered in this quick paced and highly interactive presentation. This session is presented by Nation’s Direct Mortgage.

4:45 p.m.-5:15 p.m. Exhibit Hall Raffles and prizes will be announced. 6:00 p.m.-8:30 p.m. NAMB Mortgage Professional of the Year Gala Dinner Gala sponsorship by PHH Mortgage and Gala Reception is sponsored by AFR Wholesale. Semi-formal or cocktail attire is requested.

Monday, September 26 11:00 a.m.-Noon NAMB Legislative Update Nile Room A Join NAMB’s legislative leadership team for an in-depth look at what legislative and regulatory issues are facing mortgage professionals, and what NAMB is doing to address those concerns. Panelists include NAMB Government Affairs Chair Valerie Saunders; President–Elect Fred Kreger; and NAMB Lobbyist Roy DeLoach.

Separately-Ticketed Courses The courses below require separate, advance registration and payment. Walk-in registration, if available, will incur additional fees. 9:00 a.m.-6:00 p.m. Complete Eight-Hour NMLS Course Egyptian Room Instructor: David Luna, President, Mortgage Educators and Compliance Fulfill your complete eight-hour continuing education requirements for your NMLS license renewal! This is a separately-ticketed bonus offering. Make the most of your time in Vegas by getting all your federally-required CE in addition to a conference full of networking, education, opportunities and prizes. Continuing Education course provided by Mortgage Educators & Compliance. Important note: You must take the entire eight-hour class to qualify for credit. We cannot give partial credit. 9:00 a.m.-Noon Professional Certification: Obtaining CRMS/CMC Status Certification Nile Room C Instructor: Rocke Andrews, CMC, CRMS, President, NAMB Interested in taking the next step in your career? The Certified Residential Mortgage Specialist (CRMS) and the Certified Mortgage Consultant (CMC) certifications recognize those who have achieved the industry’s highest standard of professionalism. Due to popular demand, NAMB is offering this prep course designed to provide an intense learning experience for mortgage professionals who are planning to get certified. This new prep course, will help prepare you for both exams, give you a ‘feel’ for what the actual exams will be like, improve your performance, increase your confidence and align your priorities/preparations for the CRMS and/or CMC. Tuition must be paid in full to guarantee a space. 6:00 p.m. NAMB National Adjourns

For more information on NAMB National 2016, visit NAMBNational.com.

Dear Mortgage Professional, Summer may be winding to a close, but the 2016 Election is just heating up! Although NAMB is unlikely to actively participate in the Presidential race, there are many races in both the House and Senate that we’ll be watching closely and candidates from both sides of the aisle that we will continue to support. For more information about NAMBPAC and NAMB’s overall legislative advocacy efforts, please feel free to contact me, or NAMB Government Affairs Chair Valerie Saunders, or visit www.namb.org. As we are now past the midway point of the year, I also would like recognize and thank

each of you who have so very generously supported NAMBPAC this year! Your contributions mean so much and your tireless support for our industry is very much appreciated! Sincerely,

John G. Stevens, CRMS 2015-2016 NAMBPAC Committee Chair JohnGStevens@gmail.com

Thank You to Our 2016 NAMBPAC Contributors Year-to-Date Diamond-level Contributors ($5,000 maximum annual contribution) Olga Kucerak, CRMS ..........................................TX Shane Lester, CMC, CRMS ..................................AR Kimber White ......................................................FL

Platinum-level Contributors ($2,500+ annual contribution) Ginny Ferguson, CMC ........................................CA Lisa Lund............................................................AZ John Porter........................................................WA

Note: Contributions received and pledged between January 1, 2016 and June 30, 2016.

For additional information about NAMBPAC, please feel free to contact me or visit namb.org. John G. Stevens, CRMS • 2015-2016 NAMBPAC Chair • JohnGStevens@Gmail.com * Federal Election Law requires NAMBPAC to use its best efforts to collect and report the name, address, occupation and employer of everyone who contributes $200 or more in a single year. If your contribution to NAMBPAC to-date in 2016 is less than $200, your name may not appear on this list, but NAMBPAC is still very grateful for your generous support!

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Sustaining Contributors Richard Abazia ..................................................CA Chuck Anderson ..................................................ID Joe Ashton..........................................................AZ Jayne Bail ..........................................................CO Audrey Boissonou ..............................................CA Louis Borsellino..................................................NY Jessi Bostic ........................................................UT Doug Braden ......................................................CO Teresa Buckman ................................................CA John Burke ........................................................CT Michael Burroughs ............................................OH Shannon Cagle ..................................................TX Joseph Cannarozzi ............................................SC Dana Chahidi......................................................CA Thomas Cullen ..................................................SC Harry Dinham, CMC ............................................TX Tammy Engel......................................................CA Don Fader ..........................................................NC Regina Graham ..................................................FL Melinda Gregory ................................................TX Kelly Haney ........................................................TX Roger Hope ........................................................PA Damion Hughes ..................................................TX

Kevin Kennedy ....................................................FL Wayne King ........................................................TX Steven Lang ......................................................CA Corey Leonard ....................................................IL Kim Lewis ..........................................................TX Anthony Lombardo ............................................CA Heidi Martin ......................................................OR Tiffany McCoy ....................................................AL Brion McDermott ................................................FL Ross Miller..........................................................LA Thomas Mizgerd ................................................PA Marshall Moody ..................................................TX Anthony Moore....................................................FL Nelson Otero ......................................................CA Terry Pogofsky, CRMS ..........................................IL Jeanine A. Robbins ............................................AZ Nancy Romfh ......................................................TX Marlene Rouen ..................................................LA Kathy Rubin ........................................................TX Joan Ruth ..........................................................AZ Einat Sadot ........................................................CA Anna Salser ........................................................AL Julia Schloss ......................................................CA Guy Schwartz, CMC ............................................CA Jeff Shealey, GMA ..............................................TX Shawn Sidhu ......................................................CA Geoff Snyder ......................................................TX Adam Stein..........................................................ID Donald Thomas ..................................................TX Ramona Thompson ............................................TX Steve Tilkin ........................................................FL Roland Varblow ..................................................VA Brady Webb ........................................................KY Cynthia Wingo ....................................................CA

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Gold-level Contributors ($1,000+ annual contribution) Joel Berman ......................................................NY Rick Bettencourt, CRMS ....................................MA Jhonny Bravo......................................................FL George W. Burkley III............................................IN John Councilman, CMC, CRMS............................FL Dale Di Gennaro ................................................CA Flagstar Bank Federal PAC ..................................MI Andy Harris, CRMS ............................................OR Erik Janeczko....................................................MO David Kane ........................................................FL Fred Kreger, CMC ..............................................CA Cathy Lee ............................................................HI Linda McCoy, CRMS............................................AL Jim Nabors, II, CMC, CRMS ................................OH Nathan Pierce, CRMS..........................................UT Valerie Saunders, CRMS......................................FL Lisa Severseike ..................................................IA John G. Stevens, CRMS ......................................UT

Silver-level Contributors ($500+ annual contribution) Rocke Andrews, CMC, CRMS ..............................AZ Joe Archer ..........................................................PA Keith Bilodeau ....................................................WI Don Frommeyer, CRMS........................................IN Scott Grifﬁn ........................................................CA Paul Marsh, CMC, CRMS ....................................TX Michelle Velez ....................................................CA

Kenneth D. Campbell: A

ithin the real estate investment trust (REIT) industry, Kenneth D. Campbell has rock star status. A one-time journalist, he founded Audit Investments Inc. in 1969 and merged the firm in 1992 into a new entity that became CBRE Clarion Securities, a global real estate securities firm now managing $20 billion in client assets. Campbell, at the age of 86, is still active as a managing director in the firm. Campbell, who co-wrote the first full-length book on REITs with the 1971 offering The Real Estate Trusts: America’s Newest Billionaires, just published his newest book, the autobiography, Watch That Rat Hole: And Witness the REIT Revolution. In an exclusive interview with

National Mortgage Professional Magazine, Campbell looked back on his career in the REIT industry and offered his opinion on the state of the REIT world. How would you categorize the state of today’s REIT industry? Kenneth D. Campbell: Underlying real estate fundamentals are solid and equity REITs have room to grow longer-term as the economy expands and as new REITs enter the field. But the market for REIT stocks presents uncertainties that give me caution nearer-term. As we are discussing this (on July 26), equity REITs have risen 17.4 percent year-to-date, more than doubling the 7.4 percent gain for the Standard & Poor’s 500 Index. I always become nervous when REITs outperform the broader market by such a wide margin. Right now, the market looks

skittish to me, seeking negatives and punishing the stock of any company with small blemishes in earnings. So my caution relates to the market, not real estate fundamentals. In terms of real estate operating fundamentals, demand seems strong while new supply is muted and the lowest in several decades in most property types, although demand appears more flattish in offices and apartments in some popular cities. The job outlook is key. The result is REIT occupancy at near-record levels of 95.5 percent, according to Citi Research, versus 93.2 percent average since 2001, pushing both rents and net operating income [NOI, or rents minus all direct property operating costs] again near record highs. In fact, real estate fundamentals are so strong historically that a number of stock

market analysts are forecasting limited gains or moderate declines in coming quarters. Some moderation from historically high performance levels seems possible to me in some sectors, but this should not upset the industry’s bull case. Rather, it should force investors to focus on the most efficient and best performing companies in the best markets and property types. Offsetting this modest NOI growth potential are debt capital markets welcoming new financing at both attractive rates and loanto-value ratios for quality properties. “Interest rates should remain low for as far as the eye can see,” one savvy REIT executive told me recently. Commercial banks seem to be tightening lending standards slightly, but rates remain attractive. The default ratio is

: A Sweet REIT Life

creeping upward in the commercial mortgage-backed securities [CMBS] market, but this market is still seeing healthy volumes. Equity capital is a strong point and most major equity REITs operate with much lower debt leverage than in the run-up to the 2007-2009 global financial crisis. Moreover, private investment entities have about $250 billion in funds sitting on the sidelines awaiting investment, all but assuring that cap rates will remain low for some time. So, if both interest rates and cap rates remain low for the foreseeable future, it’s hard for me to see anything on the financial horizon that can upset the REIT apple cart. My fear is that any hiccup in earnings forecasts may be unduly punished by the market, which has an unforgiving laser focus on negatives right now. REITs are now priced at about 17-

times forward earnings estimates, slightly below the multiple midpoint over the last 20 years and slightly higher than the S&P 500 Index (16.6X). These pale yellow lights mean stock selection is crucial and investors should consult their financial advisors. REITs will grow in the years ahead, in my opinion. Offsetting the concerns outlined above is fact that real estate securities become a new asset class in the Global Industry Classification Standard [GICS] in September 2016. I see that event as the ultimate seal of approval because it’s certain to improve investor visibility and institutional acceptability for real estate securities. Hence it should bring more institutional money into equity REITs over the longer term, augmenting asset growth and, hopefully, longer-term investor returns.

So to answer your question: The outlook for equity REITs is solid with room to grow. A slight moderation in NOI could flatten growth but today’s litany of risks—Brexit impact, slowing China growth, possible GDP slowdown—seem manageable to me. Within the REIT industry, which particular sectors do you forecast as having the greatest potential over the next 12 months? Kenneth D. Campbell: Industrial REITs have been growing above average for several years now on the wings of the e-commerce revolution, and while this trend is well known among REIT investors, the June 2016 quarterly reports by several industrial REITs indicate—to my eyes, anyway—that demand for

BY PHIL HALL

warehouse space by e-commerce operators is growing, if anything. Several industrial REITs say they are hearing from a wider range of e-commerce tenants with more urgent space needs. My guess is that the industrial REITs do best over the next 12 months. One caution: Many in the REIT industry do not share my enthusiasm and an investor should consult his or her investment advisor before making any investment in industrial REITs because most are trading at historically high multiples. Past performance is no guarantee of future results. The data center REITs have also been doing well recently but, again, multiples are elevated historically. Office REITs are priced at significant discounts to their continued on page 46

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Five Essential Aspects of Complete SmallBalance Commercial Loan Packages

Include the following documentation to expedite commercial transactions

By Michael Boggiano

ubmitting a complete and accurate package is important in cementing a professional relationship with lenders, building your credibility and closing loans faster.

Keep in mind, too, that missing information or incomplete documents within a package can quickly affect your rapport with the lender and delay the transaction process. While submission requirements vary by lender, a complete small-commercial loan package should generally include: Loan application The application should be verified for accuracy and consistency with other documentation that is provided, such as: Ownership entity; borrower’s income; borrower’s assets; subject property address; property occupancy and income; employment; assets; purpose of financing; payoff amounts; terms of the purchase and sales agreement; and credit. You should also include a brief summary outlining the financing request. Rent roll The rent roll should include all rental information concerning tenants of the property. This includes the name of each tenant, square footage occupied, monthly rental amounts, term of the lease, operating expense escrows and scheduled rent increases.

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Purchase and sales agreement (if applicable) The agreement should be in full force and effect and not expired. If expired, provide an extension addendum that permits sufficient time to secure financing on the transaction. The contract itself needs to be complete and verified for accuracy. The purchaser(s) listed on the sales contract should match the borrower(s) on the loan application, and the property address on the contract must match the application. Finally, ensure that the sales price and financing terms on the contract match the application.

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total balance of new mortgages originated for borrowers with subprime credit scores $16.2 billion, up 38.7 percent from a year earlier. The first quarter also saw 182,400 new home equity installment loans, a year-over-year spike of 23.5 percent and the highest level of activity for this product during a first quarter since 2008. The total origination balance on all loans in this category was $5.87 billion, an increase of 14.1 percent. There were also 314,400 new home equity lines of credit, a 10.2 percent year-over-year increase. The total credit limits of new loans originated in this sector was $35.2 billion, up 14 percent from last year and an eight-year high. “The first quarter of 2016 was a strong one for mortgage lending and underwriting practices appear to have maintained their rigor over the last three years.” said Amy Crews Cutts, chief economist for Equifax. “We anticipate that the second quarter of 2016 will maintain this trend. And later this year, the much-anticipated addition of trended credit data to the mortgage underwriting process will help to strengthen the marketplace further by helping to statistically separate lower risk borrowers from those presenting higher risk.” New Studies Highlight Flipping and College Town Rents Lately, it seems that you cannot go

Operating statements and tax returns of the property, and borrower’s tax returns At a minimum, include year-to-date operating statements on the subject property plus those from the previous two years. In addition, two years of tax returns for the property (if the borrowing entity is a corporate entity) and for the individual borrowers are necessary. Interior and exterior photos of the subject property Photos give your lender a feel for the physical attributes of a property. Be sure the photos in your loan package are recent and clearly depict the property in question. Being educated on the steps involved for submitting a complete loan package shows dedication and professionalism, both of which are necessary to help solidify your position as a serious commercial mortgage broker. Michael Boggiano is national sales manager for Silver Hill Funding, a small-balance commercial mortgage lender offering nationwide financing from $250,000 to $1 million. He may be reached by phone at (888) 988-8843 or e-mail MikeB@SilverHillFunding.com.

SPONSORED EDITORIAL

one day without someone offering a Top 10 chart of the best metro areas for the quirkier aspects of the housing market. Today, a pair of new charts is being offered to highlight the best places for house flipping and the most expensive places for off-campus college rental housing. On the flipping front, WalletHub’s Best Cities to Flip Houses for 2016 listing studied 150 cities using a 19-point measurement guide that covered such aspects as “median purchase price,” “average full home remodeling costs” and “housingmarket health index.” The resulting number crunching resulted in naming Sioux Falls, S.D., as the

best house flipping metro area. Other markets in the list’s top 10 were Fort Wayne, Ind.; El Paso, Texas; Oklahoma City; Lincoln, Neb.; Lubbock, Texas; Tampa, Fla.; New Orleans; Boise, Idaho; and Laredo, Texas. At the other end of the spectrum, Grand Rapids, Mich., was crowned the worst market for house flipping. Pittsburgh had the highest average gross return on investment with 129.5 percent, while Austin, Texas, had the lowest with 21.2 percent. Cleveland had the lowest median purchase price for properties to flip ($45,000) and San Jose had the highest ($580,000). And Memphis had the highest percentage of home flips (11.1 percent) while Austin, Indianapolis and Pittsburgh tied for the lowest percentage at 3.2 percent each. Separately, HomeUnion studies off-campus rents within a two-mile radius of the campus of a college or university with enrollments of 15,000 students or higher. As a result of this analysis, HomeUnion found the most expensive offcampus rental units surrounding of UCLA ($4,343 per month) and Stanford University ($5,705). “As college students return to school this month, we wanted to let them and their families know where off-campus rents would be the most expensive,” said Steve Hovland, director of research for HomeUnion. “Tuition for both public and private universities continues to increase nationwide, prompting students and their families to consider the cost of living in off-campus housing like single-family rentals. To minimize living expenses, students can look at more distant accommodations or consider having roommates in a rental home.” Castro Avoids Reprimand on Hatch Act Violation The Obama Administration is absolving U.S. Department of Housing & Urban Development (HUD) Secretary Julian Castro for violating the Hatch Act during an April interview when he praised Hillary Clinton and denigrated Donald Trump. According to a Washington Times report, White House Press Secretary Josh Earnest dismissed Castro’s actions as an “inadvertent error” and saw no need to

reprimand him. “He owned up to it, and he’s taken the necessary steps to prevent it from happening again,” Earnest said in a press conference. “That’s the expectation that people have when you make a mistake, particularly in a situation like this.” The U.S. Office of Special Counsel (OSC) sent a report to the White House concluding the Castro’s April 4 interview with Katie Couric for Yahoo! News ran afoul of the Hatch Act—which prevents federal government officials from using their positions to champion partisan causes—because the HUD seal was visible during the entire interview and Couric repeatedly referred to Castro as “Mr. Secretary,” which the OSC concluded was a blurring of lines. Castro broke with precedent by endorsing Clinton over Sen. Bernie Sanders during the Democratic primaries, and he campaigned on her behalf in several highly publicized events. Castro has been considered by many political experts as a leading choice to become Clinton’s running mate, despite his insistence that he was not being considered for that role.

change as time goes on and more Millennials become homeowners. “Millennials are going to have the biggest retirement burden in history,” he said. “They are not going to be able to build the nest egg they need by hunkering down with safe haven investing.” Separately, new data from the online real estate investment management firm HomeUnion has determined that all-cash investment home prices experienced a 5.4 percent year-over-year rise last month to a median price of $160,000, while the owneroccupied median sales price grew 3.3 percent to $253,600.

“As global economic upheaval weighed on investors decisions, single-family rental (SFR) investment homes remained a safe haven for many investors,” explains Steve Hovland, director of research for HomeUnion. “Prior to the recent Brexit vote and ongoing uncertainty in the global equity markets, investors parked capital in real estate for its stable returns, which has resulted in higher investment home prices. Owneroccupied home prices are hovering near all-time highs, which is keeping many potential buyers on the sidelines and slowing price growth.”

Ocwen Grants 4,100-Plus Permanent Mods in First Half of 2016 Ocwen Financial Corporation has announced that the company has initiated more than 14,000 trial plans to borrowers under the U.S. Department of the Treasury’s streamlined modification program that launched in January 2016. Over 4,100 of the trial plans afforded to homeowners struggling with their mortgage payments have continued on page 49

Real Estate Shines as Investment Vehicle Where are Americans investing their 33

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savings? According to a new survey from Bankrate.com, 25 percent of Americans favor real estate for longterm investments. “Americans have a love affair with housing,” said Greg McBride, chief financial analyst at Bankrate.com. “It is not being seen as a get-rich-quick scheme, as it was 10 years ago, but instead there is a feeling of safety and security that we don’t see with the stock market.” Bankrate.com found cash was the second most popular long-term investment vehicle, at 23 percent, followed by stocks and precious metals at 16 percent and bonds at a distant five percent. Among different income brackets, one-third of those making an annual salary of $75,000 or more were more likely to invest in real estate, while only 23 percent of those earning between $50,000 and $74,000 preferred that vehicle. Among Millennials, however, cash was king: 32 percent of those between ages 18 and 35 expressed a preference for cash, including 43 percent of Millennials ages 18-25. McBride expected that number to

Go to a Clos The

Mortgage

Godfather

t has always been my contention that when we served our clients, we always owed our absolute fidelity, plus we must always strive to give better service than they could get from anyone else. I still believe these things and now offer some methods to achieve these goals. My first sales manager taught me that no matter what was needed to get a loan to closing (we called it a settlement then), it was my personal responsibility to see that every single document was delivered, by me, by hand, when permitted. So, being a good student, having studied successful people, it became my habit to coddle my clients and offer to be their personal messenger when needed. My clients were and are my life blood, the source of continued business. Your last satisfied client is the first one who will always be the best source of continued business. When you have the opportunity to meet with your client personally, take a complete and accurate mortgage application. If they forget or donâ&#x20AC;&#x2122;t bring to the application the proper information, offer to pick up any missing documentation. When the loan is in process, offer to pick up the appraisal, the credit report, the survey, the title report, etc. Do whatever is necessary to get the loan approved. When the commitment is issued, call both the client, their attorney and the real estate person or whoever was your source of the application. When you call the client, ask when it will be convenient to meet with them to go over the commitment. It is your responsibility to help the client understand what the commitment says and will happen next. Then, you must explain what will happen at the closing. Remember, you are the most professional person in the chain of people involved in this transaction. When you are explaining the commitment, you should then

osing? Are You Crazy? BY RALPH LOVUOLO SR.

“Why don’t most loan officers attend closings? Is it because they didn’t prepare properly? Is it because they are afraid? Is it because their clients weren’t properly explained the process?” go over the closing costs. Then, the coup-de-grace … let your client know that you will go to the closing. I met with a new client last week and the subject of attending the closing came up during a conversation at the office of their attorney. This attorney handles real estate matters as his primary business, so he is familiar with the mortgage industry as it relates to the public. He asserted that he has never seen a loan officer at one of his closings. Although I was hard-pressed to accept that statement, he found out with me that it is my practice. Why would I leave it up to someone else to represent me? Why don’t most loan officers attend closings? Is it because they didn’t prepare properly? Is it because they are afraid? Is it because their clients weren’t properly explained the process? Is it because we don’t care? Is it because most sales managers believe it is wasted time? There is always more than one reason that anything happens. You must search yourself to find out why, but after you discuss this at your next sales meeting, try for a month to attend every closing possible. Countless numbers of successful loan officers will tell you that one of the most productive aspects of their

business day is when they go to a closing. They often look at this as the time to take a bow. This is when they get congratulated. Many companies will tell you that attendance at the closing is a non-productive, waste of good farming time. The most successful will tell you that the loan officer who takes the time to stop at a closing is one who is in control. This is a loan officer who is not afraid. This is a person who properly serviced their client to the point that at the closing, they tell all the people “This is our loan officer, who helped us through our loan process and did everything possible to make it a pleasant experience.” Yes, we all know how the mortgage application procedure is a difficult time for the applicant. Your responsibility does not end when you get a commitment. It extends to the time the money that you helped to obtain, passes to your client. What your client does with that money is either purchase a home, lower their interest rate, receive extra cash or some other wonderful thing. You have to go the extra mile to psychologically support your client to the last moment. You’ll find yourself doing a better overall job because of it. Do it … don’t just think about it.

Ralph LoVuolo Sr. has more than 50 years in the mortgage Industry, with the last 30 as a coach. He is past president and founder of the New York Association of Mortgage Brokers, and long-time member of NAMB— The Association of Mortgage Professionals. He can be reached by phone at (917) 576-1230 or e-mail Ralph@MortgageMotivator.com.

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Digital Media Solutions Florida Fast 100 lists. Acquires Best Rate Referrals “We strive to be the best partner for marketers focused on customer acquisition and retention,” said Joe Marinucci, CEO of DMS. “To do that, we Digital Media Solutions (DMS), an need to offer end-to-end solutions end-to-end solutions provider for across all of the top verticals. brands focused on customer Best Rate Referrals is one more acquisition and retention, has piece of this puzzle.” entered the mortgage market Earlier this year, DMS through its acquisition of Best purchased Sparkroom, a fullRate Referrals. Founded in 2005, service provider of data-driven Best Rate Referrals is a mortgage marketing and technology marketing firm that offers a solutions. Prior to the acquisition variety of lead generation of Best Rate Referrals, the DMS solutions and works with some of portfolio included both consumer the top brands within the finance and lead generation mortgage industry. brands. The acquisition of Best As a result of this acquisition, Rate Referrals magnifies both of Best Rate Referrals is now able to these categories and positions tap into the comprehensive suite DMS to support the mortgage of DMS resources, comprised of industry. full-service creative, marketing The Best Rate Referrals senior and media solutions, to better leadership will remain in their serve their current and future current roles, and the company mortgage industry clients. will maintain its autonomy within “As a company that has been the DMS umbrella of brands. The on the Inc. 500 and Inc. 5000 lists Best Rate Referrals headquarters multiple times, we are focused on is relocating from Las Vegas, Nev. identifying opportunities that to the DMS office in Clearwater, support and enhance our growth. Fla. As a result of this transition, it Joining the DMS team marks the is expected that new jobs will be transition of Best Rate Referrals created within the Tampa area. into our next chapter,” said Raymond Bartreau, CEO and Inlanta Mortgage Implements founder of Best Rate Referrals. LendingQB’s LOS “Now we can scale our services LendingQB to enhance the marketing has performance of our mortgage announced industry clients.” the DMS is in a period of successful expansion and has been growing implementation of its Web-based its portfolio of brands over the loan origination system for Inlanta past few years. Specifically Mortgage Inc. Inlanta currently aiming to scale high-spend employs more than 250 mortgage categories through a combination of strategic acquisitions, product development and sales, DMS has been noted for its size and growth on the Inc. 5000 and

professionals and has gained recognition as the top FHA and USDA lender in the state of Wisconsin. “We have grown quickly in the past few years and we recognized the need for technology that would grow with us,” said Inlanta Mortgage Chief Information Officer Chris Knowlton. “Our previous LOS vendor was ending support for our version of their software, so we took the opportunity to evaluate other providers. LendingQB’s approach offered more than just tools; their software solution enables us to close more loans in less time.” Inlanta made the decision to implement LendingQB in mid2015 and began working with a team of specialists that designed a comprehensive implementation project plan. “Inlanta was very motivated and provided plenty of resources to ensure the project would succeed,” said Lester Alitagtag, deployment manager for LendingQB. “They were efficient in communicating with us, took accountability for their work and had strong executive support. These are the keys to a successful implementation project.” The successful implementation also came at a very high loan volume time for Inlanta. “During this spring season, Inlanta reached record volume and we rolled out a new loan origination software system. This would not have been possible without our outstanding team of

employees and their dedication to fulfilling our mission. We appreciate all of their extra time, effort, and sacrifice to make this happen; it is a heck of an accomplishment by our employees,” said Nick DelTorto, president and CEO of Inlanta. Guild Mortgage Partners With FirstREX on Downpayment Assistance Programs Guild Mortgage has reached an agreement with FirstREX where FirstREX will provide downpayment funding in combination with Guild Mortgage loans to help more people buy homes. The program launches this month in Washington, with future launches being planned for additional states where Guild operates. Under its REX HomeBuyer program, FirstREX can contribute up to half of a 20 percent downpayment for a home purchase. The REX HomeBuyer investment combined with a Guild Mortgage loan will empower prospective homebuyers to buy the home they really want with unprecedented opportunity, flexibility and control. FirstREX’s contribution to the buyer’s downpayment is an investment, not a loan, so there are no interest or monthly payments on the money. Instead, FirstREX hopes to earn a return on its investment from a portion of the appreciation when the homeowner eventually sells. A homeowner can also buy out the agreement after three years. “Buyers can consider a wider range of home prices, lower their monthly payment and reserve

cash for retirement, home improvements or their children’s education,” said Mary Ann McGarry, president and CEO of Guild Mortgage. “Guild has a long history of helping first-time homebuyers and this program will be great for them. We see this program with FirstREX also helping solve financing challenges for move-up buyers across all price ranges.” “The REX HomeBuyer program will open up the market to more potential borrowers,” said James Riccitelli, co-CEO of FirstREX. “Imagine a prospective homebuyer who has 10 percent to put down. Now they have 20 percent. They can buy more home without taking on additional debt. Likewise for someone who has the full 20 percent to put down. With our investment, they can put half of that back in their pocket. Buyers can buy the home they really want today, with less debt and less risk, while retaining some of their cash after closing for other purposes.”

establishing itself as the leading provider of compliance and document solutions in the market,” said Lance Fenton, partner at Serent Capital. “They have built a strong reputation for excellence and high customer satisfaction, and we will leverage our expertise and capital to help lay the foundation for another two decades of success and growth.” MiMutual Mortgage Opens New Branches in Utah MiMutual Mortgage, the national retail

channel for Michigan Mutual Inc., has opened a branch in South Jordan, Utah, a suburb about 20 miles south of Salt Lake City and plans soon to open another office in Lehi, Utah. “As one of the nation’s most trusted and respected mortgage lenders, we’re thrilled to continue our steady growth through more than 30 states nationwide,” said Daniel Jacobs, executive vice president and managing director of MiMutual Mortgage. “We’re not simply expanding our business with these branches but making a commitment to the Greater Salt Lake community

with our experienced team of industry experts.” Utah native Spencer Stott has been named Salt Lake City’s regional manager to oversee the area’s growth, and he brings more than a decade of mortgage industry experience as a licensed mortgage loan originator, specializing in FHA, VA, conventional and jumbo financing loans. Recently hired John Stevens, vice president of business development for MiMutual Mortgage, will work closely with Stott to grow the continued on page 42

Docutech Partners With Serent Capital

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Docutech is partnering with Serent Capital, a San Franciscobased private equity firm. Serent’s minority investment in Docutech provides the company with access to a capital partner to accelerate the company’s growth amongst financial institutions and a strategic partner to provide guidance for product development, sales and marketing strategy, and leadership. Serent specializes in investing into fast growing companies that have the potential to become the leaders in their industry. Firm executives cited the strong leadership and product mix at Docutech as a key factor in deciding to invest into the software company. “The past several years have seen Docutech undergo strong growth as we have pushed to deliver the most innovative compliant financial document services in the industry,” said Ty Jenkins, founder and CEO of Docutech. “Serent is the perfect partner for us that pairs a passion for our industry and the expertise to grow our product base and customer base in exciting new directions.” As part of the partnership, Ty Jenkins and the executive team at Docutech will continue to lead the company in all areas of strategic operations. “Docutech has spent 25 years

Lykken on Leadership

Never Stop Asking Why: Six Questions to Start With BY DAVID LYKKEN

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erhaps the greatest leadership lessons of all can be learned from children. If you’ve ever been around a young child for a long period of time, you’ve probably been both energized and annoyed by their level of curiosity. When we’re adults, we sometimes tend to be satisfied with the simple answers to questions. We seldom feel the need to dig deeper; rather, we shrug our shoulders, say “it is what it is,” and move on to the subject. Kids don’t seem to have this in them. Instead, they never seem to be satisfied. When they’ve latched onto something they’re trying to figure out, they never stop asking why—no matter how many answers you give. There’s something in this continual asking of “why?” that gets at the heart of what it means to be a leader. Until you really know who you are and why you do what you do, you can’t really expect others to follow you. Without a great deal of introspection on your part, you become the very definition of “the blind leading the blind.” How can people know why they’re following you if you don’t even know why you’re going where you’re going? Asking yourself “why” is elemental. Until you do this, nothing else will make sense.

“Until you really know who you are and why you do what you do, you can’t really expect others to follow you.” One of my favorite books on leadership, and one that I’m continuing to integrate into my consulting and coaching, is Simon Sinek’s Start With Why. In this book, Sinek explains the concept of the “Golden Circle.” The outer ring—what most people see—is “what” you do. It’s your product— what you have to show for in your work. Just inside that is “how” you do what you do— the process or methodology by which you accomplish your “what.” But the most important part, the center of the circle, is your “why.” Your “why” is what motivated you to do what you do. If you haven’t spent a great deal of time figuring out what this is, your “how” and your “what” will quickly become hollow as a result. In this article, I would like to discuss a few important “why” questions you might start asking as a leader in the mortgage industry. 1. Why are you in the mortgage business? When you ask this question,

understand that it is a different question than “How did I get into the mortgage business?” We get into the mortgage industry by all sorts of avenues. To some of us, it’s the family business. Perhaps our parents were involved in the industry, so we followed in their footsteps. Maybe some of us just happened to land a job in the industry and then decided to make a career of it. But forget how you got here and instead ask this question: Why am I still here? In other words, what drives you to remain in the mortgage industry when there are other industries in which you could be working? What is it about the mortgage industry that drives you? How does it get you excited? If every leader in the mortgage industry started asking this question, I guarantee you we would all be much better off. 2. Why are you in a leadership role? Just because you are in the mortgage business, that

doesn’t mean you have to be a leader. You could just put your head down and do your job but, if you’re taking the time to read this, I’m betting that you are a leader in some capacity within your organization. Why did you choose to become a leader? Of course, your answer to this question must go beyond perks such as earning more money or getting more vacation time. What gets you passionate about serving in the role of a leader? Why do you like to lead? Is it the thrill of knowing people are counting on you? Is it the feeling you get from inspiring others in their work? Is it knowing that what you are doing really makes a difference? Maybe it’s a combination of all these things, but you’ll never know unless you ask. 3. Why do you work for the company you work for? Like the first question, don’t confuse this question with, “How did I get this job?” As

you grow in your capacity as a leader, your buying power as an employee will grow with it. If you’re not at the point where you can start “playing the field” for better opportunities, you will be eventually. When you’re at that point, you’ve got to ask yourself the question, “why am I staying with this company?” What is it about the philosophy or mission of your company that gets under your skin and makes you proud to be an employee? Or, maybe you’re an entrepreneur—maybe you’re in the company because it’s your company. If that’s the case, the question only becomes more important. Why are you building the company the way you are? What about it makes you proud that your name is on it? Whether you own your company or you are an employee of your company, you’ve got to ask this question. Why is your job more than a job?

“why?” Great partners can make an enormous difference. Do you know why you’ve hired the partners you’ve hired?

David Lykken, a 43-year veteran of the mortgage industry, is president of Transformational Mortgage Solutions (TMS), a management consulting firm that provides transformative business strategies to owners and “C-Level” executives via consulting, executive coaching and various communications strategies. He is a frequent guest on FOX Business News and hosts his own weekly podcast called “Lykken on Lending” heard Monday’s at 1:00 p.m. ET at LykkenOnLending.com. David’s phone number is (512) 759-0999 and his e-mail is David@TMS-Advisors.com.

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5. Why do you serve the customers you serve? If you’ve had any training in marketing, you’ll know the golden rule: you can’t please everyone. Your target customer is not likely “everyone.” If you cast your net that broadly, you want catch much. So, why do you aim to serve the customers you do? What is it about the people you are trying to reach that makes you want to serve them, and not some other segment of the market? If you can ask this question on an

6. Why do you partner with the vendors you partner with? In addition to asking why you serve your customers, you’ll want to ask why you are choosing to be a customer of the vendors you’ve hired. If you are a leader in any capacity, you have likely played a role in making purchasing decisions for technology companies, training companies, consulting

companies, and so on. Why did you choose the vendors you chose? What is it about their “why” that aligns with your

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4. Why do you work with the people you work with? As a leader in the mortgage industry, you likely have some say over who is on your team. Why do you choose to build your team the way you do? This question is really a deep question, because it means you’re not only focusing on your own why; you’re also focusing on the “why” of others. Have you asked your people why they do what they do and why they want to work for you? What drives the members of your team to show up for work day in and day out to get the job done? If you don’t have much control over who you work with, then you can still ask yourself why you stay on the team when you could go work somewhere else. What is it about your colleagues and/or employees that make you want to keep working for your company?

ongoing basis, it will almost certainly help you grow your business.

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Let TagQuest’s Email Marketing work for you! 1. Find the professionals you need: Target any industry or a combination of multiple industries using the best, most current up-to-date data available. 2. Get your message in front of them: You know your business better than anyone else. Customize your own message to ensure a quality response rate. Utilize split testing and fine tune your message over time to increase your results. We can send messages, pictures, HTML or text. You give us the message and we’ll send it through our EZ Send Email Portal. 3. Finally, follow through and tracking: Repetition is the key to hiring professionals with e-mail marketing. TagQuest’s EZ Send E-mail Marketing Portal allows you to program how many times you want your message sent and when. Send it once, twice or send it a hundred times! Once the system is programmed, you can relax, knowing that your messages are being sent at the exact time you specified. And now that your messages are sending, it would be nice to see what’s happening to them, right? With our EZ Send E-mail Portal, you will be able to see open rates, click through rates, and dates and times of all deployments. Now YOU are in charge of the speed at which your company grows. Don’t let hiring professionals stand in your way of success any longer. Call today to get signed up with your TagQuest EZ Send E-mail Portal and start hiring today! Based in Oregon, TagQuest Inc. is a full-service marketing firm offering cutting-edge marketing solutions for the ever-changing mortgage industry. Utilizing more than 12 years of marketing expertise and the best technology available, TagQuest marketing focuses on the specific needs of our clients. For more information, call (888) 717-8980 or visit TagQuest.com.

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heard on the street

company’s presence in and service to the Salt Lake City community. Stott’s South Jordan branch currently has 14 employees. “The opportunity to continue MiMutual’s tradition of high quality customer service as we continue to expand to new locations is very exciting for me,” Stott said. “MiMutual has an enriched company culture founded on critical core values, such as integrity, problem solving and commitment. Being able to share my knowledge and experience with a company that prioritizes customer satisfaction and the personal growth of every employee will be a great foundation for this new branch.” Chronos Solutions Acquires Tech Provider UPF Services

Chronos Solutions has acquired UPF Services, a Spokane Valley, Wash.-based provider of process-driven services and technology solutions for the real estate and mortgage industries. The acquisition of UPF Services marks the fourth acquisition for Chronos Solutions since January 2015, when it acquired RealtyBid.com, a leading online real estate auction marketplace. In the first quarter of 2016, the company acquired both San Diego-based mortgage technology provider Cogent Road and Commerce Title and Closing Services. The addition of 25-plus year mortgage industry service provider UPF Services complements and expands Chronos Solutions’ existing suite of products and services and creates the industry’s only singlesource for complete origination solutions, providing every service detailed on a homeowner’s closing statement. Several UPF Services offerings—document preparation and recording, lien release, flood hazard compliance and tax monitoring services—complete Chronos Solutions’ suite of loan origination solutions. Chronos Solutions customers will now be able to order these services on a standalone basis or in conjunction with Chronos Solutions’ existing service offerings, including tax return verification services (through

continued from page 39

Taxdoor), credit reporting, analysis and verification services through Funding Suite, as well as appraisal and valuation services, HOA solutions and comprehensive Title and Closing services through Chronos Title Solutions. “Offering integrated services provides our clients with a huge advantage, enabling them to enhance efficiencies, reduce operational expenses, minimize risk and improve the overall customer experience,” said Chronos Solutions CEO Matt Martin. “Now that we are the only ‘one-stop shop’ in the country, we are uniquely able to offer these synergies to our clients.” With this acquisition, UPF CEO Mark Hikel will serve as Chrono Solutions’ president of Outsourced and Origination Solutions. “UPF is excited to join the Chronos Solutions family,” said UPF Services CEO Mark Hikel. “It’s an important step for us to be part of creating a single company that can manage the entire ‘tracking’ process for the mortgage industry, with flood, tax, insurance and HOA. To our knowledge, we are the only firm in the country with this broad capability.” Chronos Solutions EVP of Business Development and Marketing Matt Slonaker confirmed that the company will welcome 300 additional customers and add some extremely valuable capabilities as a result of the UPF Services acquisition. Colony American Finance Implements OpenClose’s LOS Platform

OpenClose has announced that Colony American Finance (CAF) has implemented the OpenClose loan origination platform to support its new Single Asset loan product across correspondent, wholesale and retail channels. Colony American Finance is focused on first launching OpenClose’s standalone correspondent module, OC Correspondent, for its turnkey capabilities. Implemented in continued on page 68

NAMB+ is an independent, wholly-owned, for-proﬁt marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, It’s hard to believe, but summer is already drawing to a close! As we turn our attention to Fall, I hope that you are gearing-up for another incredible NAMB NATIONAL in Las Vegas, Nevada, September 24-26th. I know NAMB+ is! NAMB+ will be at the NAMB Membership Booth all weekend to answer your questions and even personally introduce you to the many NAMB+ Endorsed Providers that are attending and exhibiting at the event. This is the very best opportunity for you to connect with some of the best companies in the business and help support your national trade association at the same time. NAMB+ is also excited to be the Presenting Sponsor of the inaugural NAMB Golf Tournament at NAMB NATIONAL! Here we will be showcasing all of our NAMB+ Endorsed Providers and we will, once again, be available to connect you personally

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with any of the Endorsed Providers you would like to meet. The NAMB Golf Tournament is being held on the Sunday, September 25th at the Royal Links Golf Club, just minutes from the conference hotel, and space is limited, so sign-up today! I look forward to seeing all of you in Las Vegas! Sincerely,

Nathan Pierce, CRMS, CMP, President NAMB+, Inc. npierce@advfund.com See below for a complete listing of the current NAMB+ Endorsed Providers and visit NAMBPlus.com for more information.

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NAMB members receive a 10% discount off regular prices for Warm Welcome LLC services. For more information visit WarmWelcomeLLC.com.

WhoHub (www.whohubapp.com) is a FREE marketing tool for local Realtors to refer their best Loan Officer. The service is FREE for the agent and their clients so it gets shared among local friends, family and neighbors who will see your profile. Each loan officer pays just $30/month for unlimited agent connections. Whether you connect to 1, 15 or 100 agents – still just $30/month. That’s right; one new borrower pays for the service for years! NAMB members get their first 90 days for just $1, month to month thereafter, cancel anytime.

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eEndorsements promotes your success by making it easy to capture customer reviews, control your content, and publish your testimonials where they matter to drive new business. Automatically share your reviews on Facebook, Twitter and Linkedin. Easily invite your clients to share reviews to sites like Yelp and Zillow. eEndorsements will also hosts a review proﬁle page indexed and found in Google Search. eEndorsements offers a 34% discount to NAMB Members. For more info please visit http://eendorsements.com/namb.

Morf Playbook™ by Morf Media is software that allows you to train your staff and customers. You can create your own training, add your policies and procedures or select courses from the Morf Partner Portal. Whether you are looking for CFPB compliance training, sales training or new loan ofﬁcer training, Morf can connect you with exactly the training you need. If you can write about it, record a video about it or talk about it…YOU can train on it with the Morf Playbook™! Find out more at www.morfmedia.com/namb.

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NAMB members receive a discount off Brokers Compliance Group compliance support programs.

USA Business Lending is the nation’s premier commercial brokerage ﬁrm representing over 3500 lenders.

nmp The future of corporate storytelling Angel Oak Mortgage Solutions LLC

DocMagic

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1800 West 213th Street Torrance, CA 90501 800-649-1362 www.docmagic.com

Angel Oak Mortgage Solutions is leading the way in the alternative lending space. Offering wholesale subprime and alt-doc options, Angel Oak brings safety and reliability back to the non-prime market.

Caliber Home Loans Inc.

Ernst Publishing Co., LLC

3701 Regent Blvd Irving, TX 75063 800-754-8955 CaliberWholesale.com

One Commerce Plaza 99 Washington Avenue, Suite 309, Albany, NY 12210 800-345-3822 x 0 www.ernstpublishing.com

Caliber Wholesale’s success is built on a full array of conventional, government and Portfolio loans, combined with our reputation of providing our business partners with the highest level of service.

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DocMagic delivers the best end-to-end Document Preparation, eDelivery and Compliance Solutions in the industry. Over 10,000 customers in fifty states rely on us for innovation, quality, and service.

Celebrating over 1 billion transactions, Ernst Cost2Close solutions process guaranteed fees with unparalleled speed and accuracy, alerting the lender and the settlement agent of fee changes in real time.

Citadel Servicing Corporation

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Citadel Servicing is committed to the emergence of Non-QM/Non-Prime lending. Pioneering the most innovative lending programs which include Alt Doc, life events (FC, BK, and SS), $3mil loan amounts and low fico scores.

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Class Appraisal

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We’re an award winning Appraisal Management Company focused on building positive relationships with our business partners. We are revolutionizing the way business is done with our new and exciting technology.

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nmp The future of corporate storytelling Paramount Residential Mortgage Group, Inc.

United Wholesale Mortgage

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1414 E. Maple Rd. Troy, MI 48083 800-981-8898 www.uwm.com

Paramount Residential Mortgage Group, Inc. (PRMG) is one of the largest privately held national mortgage bankers and residential home lenders, helping homeowners purchase homes across the U.S.!

REMN Wholesale 194 Wood Ave. S. 9th Floor 732-738-7100 www.remnwholesale.com Iselin NJ, 08830 REMN Wholesale provides same day turn times every day on new file submissions. With a commitment to the broker experience, REMN is leading the way as a preferred partner in the mortgage industry.

UWM is a forward-thinking, fast-moving and innovatively inspired lender that is always working to champion mortgage brokers and change the game with the latest and greatest technology and services.

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announcing! Holiday Networking Parties dates and locations!!!

HOLIDAY NETWORKING PARTY 2016

Don’t miss the opportunity to network and be part of history at the largest loan originator Holiday Networking Parties! Sponsorship opportunities available NOW! For more information, see page 47!

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TagQuest Inc. is a full service marketing firm offering the most up-to-date, cutting edge marketing solutions for the ever changing Mortgage Industry. Proudly serving our clients for over a decade.

We are seeking nominations from our readers for National Mortgage Professional Magazine's "40 Under 40" feature, slated to appear in our December 2016 edition. Anyone who is under the age of 40 and has had a major impact on the industry can qualify for this feature. This could be through innovation, association participation, sales force automation, community activism, management techniques, technology or any other significant method that has influenced our industry. We would need a short, three-line bio on the nominee, along with a color photo and company contact info to complete the profile. To nominate yourself or someone else, visit https://nmpmag.wufoo.com/forms/nmps-40-under-40-2016/

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Industry Updates: August 2016 By Melanie A. Feliciano Esq.

CFPB publishes HMDA Transactional Coverage Chart The Consumer Financial Protection Bureau (CFPB) recently published a HMDA Transactional Coverage Chart that assists in determining whether a transaction is reportable under HMDA. The Chart is effective Jan. 1, 2018, for all loan applications involving a Covered Loan and may be accessed from the CFPB’s Implementation & Guidance page on its Web site. CFPB publishes Filing Instructions Guide for HMDA data collected in 2017 The CFPB recently published a Filing Instructions Guide for HMDA data collected in 2017. Beginning with HMDA data collected in 2017 and submitted in 2018, the CFPB will take over control of the receipt and processing of HMDA data from the Federal Reserve Board. The Filing Instructions Guide may be accessed from the CFPB’s Web site. HUD/VA addendum to URLA (Form 92900-A) The Federal Housing Administration (FHA) has published the final version of the revised HUD/VA Addendum to the Uniform Residential Loan Application (Form 92900-A). As a reminder, this updated form is effective for all FHA Case Numbers assigned on or after Aug. 1, 2016, and the revised version of the HUD/VA Addendum may not be used until its effective date.

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Colorado disclosures retired Selected provisions of the Colorado "Mortgage Loan Originator Licensing and Mortgage Company Registration Act" governing disclosures to borrower(s) of certain costs and fees were repealed, effective March 16, 2016. As a result of the repeal of those provisions pursuant to Senate Bill 16-014, Colorado mortgage loan originators will need to follow instead federal statutes and rules governing disclosure requirements and other activities of loan originators. GSEs announce UCD Delivery Requirement for Q3 2017 The Uniform Closing Dataset (UCD) is a common industry dataset that allows information on the CFPB’s Closing Disclosure to be communicated electronically. Fannie Mae and Freddie Mac (the GSEs) have developed the UCD at the direction of the Federal Housing Finance Agency (FHFA) as part of the Uniform Mortgage Data Program (UMDP). The GSEs announced on May 24, 2016, that they will require delivery of the UCD in Q3 2017 for all loans acquired by Fannie Mae or Freddie Mac. For more details, check the UCD page on Fannie Mae’s Web site.

Melanie A. Feliciano Esq. is DocMagic Inc.’s chief legal officer and currently serves as editor-in-chief of DocMagic’s electronic compliance newsletter, The Compliance Wizard. She received her JD from the Georgetown University Law Center, and is licensed in California and Texas. She may be reached by phone at (800) 649-1362 or e-mail Melanie@DocMagic.com.

SPONSORED EDITORIAL

a sweet reit life

continued from page 31

underlying net asset values and provide well-covered dividends for longer-term investors. Will the agitation created by Brexit and tumult about China’s economy bring more investors to REITs? Kenneth D. Campbell: Brexit should focus more long-term investment capital on New York City, which competes with London as a world financial center. Large London-traded real estate REITs and companies sold off sharply on the Brexit vote but have recovered about two-thirds to three-fourths of their losses in the subsequent month. Also, uncertainty seems to have ended about the wellpublicized failures of a few United Kingdom property funds (which owned both properties and securities) to honor redemption requests. The London office market seems to have relatively low vacancy now and it’s likely some developers will postpone new office starts until the air clears. All that should work in favor of the New York City equity REITs. A half-dozen publicly traded equity REITs own more than 80 million square feet in Manhattan, or more than 20 percent of that market, so this is a very important market for REIT investors. The tumult in China’s economy seems rooted in overbuilding in its housing market financed by aggressive monetary expansion to provide modern housing as a significant part of their population migrating from rural to urban areas. This over-building may take time to unwind, as it did in the U.S., slowing the global economy by an unknown amount. I do not see this as a near-term threat to U.S. REITs. In creating your book, what were some of the toughest challenges in putting your life’s adventures on paper? Kenneth D. Campbell: There were two challenges: The first challenge involved documenting times and events. One’s mind tends to romanticize and/or gloss over details of far-removed events. Luckily, I discovered my pack-rat tendencies had over-ridden good sense and I was able to resurrect many key documents from the past—more than half of my weekly calendars from 1969 onward, my letters seeking a job with House & Home Magazine (which form the basis for Chapter Five, “The March”), and my stock trading

records between 1964 to 1969 when I learned the fundamentals of investing (Chapter Seven, “The Gestation”). I thought my trading records had perished, but found them in a yellowed envelope. They let me document how I nearly tripled my H&H severance to give me the funds to begin my own business. I included details to the dollar in Appendix II because I hate investment books that tell tall tales of stock market gains without providing specifics. Finally, I relied upon nearly every issue of my main investment advisory service, Realty Trust/Stock Review from March 1970 to June 1990, and they helped nail down countless facts. The University of Pennsylvania Libraries is digitizing their nearly 4,000 pages for use by scholars beginning in late 2017. The second challenge involved the selection of stories to tell. Early on, I decided to tell all the notable stories I had been telling family and friends over the years, but that canon was so broad I had to focus on only the best. My first outline had something like 46 chapters, which I ultimately winnowed over several revisions to the 26 chapters forming the book. Along the way, I had been given a slim 20-page booklet titled Securities Admitted to Trading New York Real Estate Securities Exchange Inc. dated July 12, 1930, and I spent considerable time tracing the history of that illfated entity, largely through the digital files of The New York Times, to tell the story of this most significant precursor to equity REITs. The NYRESE story appears as Appendix I. What do you see as your greatest accomplishment within the REIT industry? Kenneth D. Campbell: When I began my advisory services in 1969, I found that Wall Street had little idea how properties were valued, and real estate people didn’t know how to value stocks. The problem was that accounting conventions required properties to be depreciated, creating sometimes-huge discrepancies between property values and their carrying values on company books. This kept stock market investors from knowing the true value of properties. In Chapter 21 of Watch That Rat Hole, I tell the story of how one group of properties, valued at continued on page 79

new to market

Mortgage Technology

Appraisal Woes: Part II By Andy W. Harris, CRMS

ast month, I spoke about the growing issue that is a major concern with appraisal delays and barriers to entry impacting most home purchase and refinance transactions today. Over the last few months, I have seen this trend grow in my market and it’s the worst I’ve seen in the history of my time spent in this business. This is impacting all conventional and government loans and the VA is increasing appraisal fees to veterans from $500 to $780 on Sept. 1, 2016 just to incentivize appraisers through stronger compensation to take these orders. My markets are Oregon and Washington. Our average turntimes in Oregon are approximately one month inside the metro areas and slightly less in Washington. The coast and other regions are five tom six-plus weeks or appraisers are simply turning down the orders and adjusting fees significantly upward (some more than $1,000 for a standard appraisal). Oregon is slightly worse than Washington, but I’m hearing Colorado and 48 even Maine are also leading as some of the worst turn-times in the country. These fees and turn-times must stop, and in order to fix this issue, we need to tackle it now. With the regulatory burden and difficulty for new appraisers to enter the market this is not an easy solution. It just came and hit us like a ton of bricks with markets in heavy demand and recent Brexit impact to rates hitting some of the lowest levels in history. Educating all parties should not be our responsibility as the lender exclusively. Real estate agents and others need to be active and educated on the process to set expectations accurately upfront to those they are hired to serve. We must simply ensure that our clients are protected both on rate lock and other costs whatever that takes with expectations clear with the state of appraisals. Please share with us what you’re seeing in your state(s) and email me below your average appraisal turn-time or post on our OrigiNation page on Facebook. We need to find a solution and gather this information. Please also share if you are seeing quoted fees upfront changed on the original order with the appraisal management company (AMC) and who we believe should be accountable to cover this difference providing the misquote to the consumer. Many are calling this appraisal fiasco “extortion” and I would have to agree. Are you an originator? Send your stories! To have topics considered in future editions, please e-mail me with “OrigiNation” in the subject line at AHarris@VantageMortgageGroup.com. These can be confidential or your name and company can be referenced if you wish. You can also join the Facebook group by searching “OrigiNation.” AUGUST 2016 n National Mortgage Professional Magazine n

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Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and past president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

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OriginationPro Mortgage School Goes Live Online The Hershman Group announced that it has released its online OriginationPro Mortgage School to fulfill the needs of the mortgage industry. “The mortgage industry has grown old since the financial crisis,” said Dave Hershman, founder of the OriginationPro Mortgage School. “Because of a multitude of factors, the average age of the sales force is now over 50 years of age. Our online school is designed to be flexible and affordable, as well as comprehensive.” The school contains four modules, the syllabi for which can be downloaded at OriginationPro.com: l The World of Mortgages: Basic knowledge for anyone entering the industry, including operations personnel. Highly recommended for those about to take the NMLS licensing exam for candidates without previous experience in the industry. l Advanced Mortgage Knowledge: Designed to convert loan officers from competent to expert mortgage advisors. l Building Business Success: A comprehensive treatment of marketing and sales for all business models. l Building and Leading a Mortgage Production Team: Recruiting, assessment and mentoring skills for mortgage managers. “The vast majority of our sales managers are producing and thus do not have the time or expertise to mentor novices in this industry, let alone assess candidates who might be successful. Therefore, assessment guides and mentorship training will be as important as the overall curriculum. This is why we have decided to create the Certified Mortgage Mentor designation, as well as our previous designation of Certified Mortgage Advisor.” MISMO Announces Release of HMDA Implementation Toolkit

MISMO, the Mortgage Industry Standards Maintenance Organization, has released a set of products to help companies implement the new Consumer Financial Protection Bureau (CFPB) Home Mortgage Disclosure Act

(HMDA) rule. These tools, collectively referred to as the HMDA Implementation Toolkit, offer a comprehensive collection of guidance, mapping documents, and other information about the rule and the use of MISMO in meeting the requirements of the rule. In particular, the tools help companies build upon existing reporting requirements such as the GSE Uniform Mortgage Data Program (UMDP). “The industry participants who collaborated to create the new Toolkit did a remarkable job of developing clear and concise operational and implementation guidance from the complexities of the revised HMDA regulations” said Mike Fratantoni, president of MISMO and chief Economist and senior vice president of Research and Industry Technology at the Mortgage Bankers Association (MBA). “This will be extremely valuable to lenders as they begin to prepare for HMDA reporting under the new rule.” The Toolkit is a comprehensive package of implementation guidance, business scenario examples, mappings and sample XML. It outlines the new HMDA Loan Application Register (LAR) requirements and provides guidance on how to best leverage the value of the MISMO standard as it applies to HMDA reporting requirements. “The HMDA Implementation Toolkit represents an important milestone for MISMO by extending the traditional tools offered to help institutions simplify the implementation of the evolving industry data standards,” said Randy Gilster, senior vice president, Wells Fargo and Chair of the Residential Standards Governance Committee. “The HMDA Implementation toolkit is the first of a new generation of comprehensive business oriented tools and solutions offered by MISMO.” Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

nmp news flash

ranking member of the U.S. Senate Finance Committee. “We have too many people working hard to support their families who can’t refundable tax credit of up to $10,000, afford rent much less even think about buying their first home. The which would be equal to 2.5 percent federal government needs to do of the purchase price for homes that more to repair the housing crisis at are acquired for less than $600,000. all levels, working closely with state Homes purchased between the and local governments. That $600,000 and $700,000 range could receive a smaller credit that would be includes making sure we are calculated by reducing the maximum adequately funding effective credit by the amount that the purchase programs to help people price is higher than $600,000. The tax experiencing homelessness, getting low-income families access to credit would be also be determined quality housing, and making sure based on annual incomes. middle class Americans can afford “Our country’s housing policy rent or their first home.” needs a remodel,” said Wyden,

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Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

Why choose MBS Highway? BARRY HABIB— THE ORIGINATOR OF THE MARKET ADVISORY SERVICE Daily guidance and insights from Mortgage Market expert Barry Habib. He closed over $2 Billion in production as a Loan Originator, called the bottom of the Housing Market and currently provides sales and market training to thousands of Loan Originators across the country. STATE OF THE ART, USER FRIENDLY WEBSITE We've taken great pride in building a website that uses new technology, and enhances the user experience. No matter where you are on our site, you'll always have market data in sight. Never miss a lock alert with our real time market news and alert system.

EASILY SHAREABLE CONTENT With a touch of a button members are able to share charts showing the latest economic and housing data.

REAL ESTATE DATA & INSIDER CONTENT Show the housing opportunity in your local market to customers and real estate agents. We will provide you with affordability levels, appreciation, resale volume, new construction, and job growth…updated monthly and easily shared. There is also additional content from Art Cashin, Kiplinger letters, and much more.

MOBILE WEB APP Always stay in touch with the market when on the go with our Mobile Web App. It's fast and easy to use. Whether you have an iPhone, Android, Blackberry, Windows Phone, you'll always have access to MBS Highway. No downloads, no annoying updates, just visit m.mbshighway.com in your phone or tablet's browser. CALCULATORS AND TOOLS Powerful and unique calculators to help you when presenting to customers. Buy vs. Rent, ARM vs. Fixed, Paying Points, and Amortization calculator are a few examples. You can save and share the results to beat your competition.

What you're getting with your MBS Highway trial l Bond Quotes l Daily Video and Transcript l Interactive Charts l Lock/Float Advice l SMS Updates l Real Time Market News l Cashin's Corner l The Kiplinger Letters l Real Estate Market Data l By The Number$ l MBS TrendTRAKR l Social Share

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n National Mortgage Professional Magazine n AUGUST 2016

Senator Seeks New Homebuyer Tax Credit Sen. Ron Wyden (DOR) has introduced legislation that would provide a refundable tax credit for certain first-time homebuyers. Under S.3175, also known as the First-Time Homebuyer Credit Act of 2016, first-time homebuyers are eligible to a

NMP News Flash column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com

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already been converted to permanent modifications. The U.S. Department of the Treasury broadened the Home Affordable Modification Program (HAMP) to include a “streamlined” modification process designed to further assist borrowers who meet basic HAMP eligibility criteria but had not yet entered the initial program. “Ocwen is excited about the additional families we have been able to reach through this new HAMP program. We will continue to assist struggling homeowners prior to the sunset of the HAMP program,” said Ron Faris, president and chief executive officer of Ocwen. “Ocwen is proud of its commitment and ability to help its customers remain in their homes, and this streamlined modification process allows more borrowers to obtain financial assistance through responsible loan modifications.” Ocwen has been a HAMP participant since the program’s inception in 2009 and was an early adopter of the streamline modification program. As reported by the U.S. Department of the Treasury, through March 31, 2016, Ocwen has helped homeowners stay in their home by modifying approximately 320,000 loans through the HAMP program— more than any other mortgage servicer. Modifications completed by Ocwen account for 20 percent of the total modifications completed by all mortgage servicers under the program. “Ocwen is playing a critical role in helping borrowers better afford their homes and improve their financial health,” said David Berenbaum, chief executive officer of the Homeownership Preservation Foundation (HPF). “HPF connects Ocwen mortgage holders with HUD certified housing counselors who help homeowners avoid foreclosure. HPF network counselors have helped more than 11,000 Ocwen customers increase their monthly cash-flow by an average $300 per month, and improve their credit score by reducing debt. Ocwen’s best practices in mortgage modification and related consumer outreach are helping more consumers sustain homeownership.”

Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of:

The Long & Short The Business of Short Sales

Erroneous Foreclosure Code Still Results in Loan Denial for Past Short Sellers in Freddie Mac Loan Prospector for Conventional Loans BY PAM MARRON n August of 2014, Fannie Mae successfully implemented an automated system workaround that enabled lenders to correct conventional loan Refer/Ineligible findings when past short sale credit shows up as a foreclosure in the Desktop Underwriter or Originator. Freddie Mac’s Loan Prospector automated underwriting system never implemented a correction, and past short sale credit still results in a Loan Prospector “Caution,” or loan denial, for those trying to obtain a new conventional mortgage after a short sale. The problem does not occur for government FHA and VA loans. Freddie Mac’s Caution findings commonly lists in the reasons for denial under Credit Risk Comments: “13. Recent foreclosure/significant derogatory appears on credit report.” A Freddie Mac “Caution” denial requires a manual underwrite to overcome this error. Lenders that will do a manual underwrite on either Freddie Mac or Fannie Mae conventional loan files are rare to find. The good news is that which of the credit repositories reporting the foreclosure is now able to be found and seen in raw data through credit reporting agencies. This would not be of such great concern if the mortgage industry was not approaching the rollout of the new “Trended Credit Data” that will work with the Fannie Desktop automated system in Version 10.0, set to

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roll out on Sept. 24, 2016. If there are any glitches in the DU 10.0 format, lenders will likely put their loans through the Freddie Mac Loan Prospector automated underwriting system. When the problem of the “Caution” in Freddie Mac’s automated system is brought up, the response from Freddie Mac has been that their system has been corrected and problems are with individual files. This article was written to alert Freddie Mac that as more past short sellers become eligible to purchase a home again, we as lenders are experiencing the problem of the “Caution” denial of new conventional mortgages more and more often. This is what we are finding. All files currently being entered into Loan Prospector for a conventional mortgage purchase where a past short sale exists in credit are receiving a “Caution,” even when the past short sale is past the four-year mark, the wait time required after a short sale for a new Freddie Mac conventional mortgage. A few lenders have stated they have received an “Accept” for a past short seller on a conventional mortgage, but we have found that only loans submitted for an FHA or VA loan appear to receive an “Accept.” This is believed to be due to the fact that Total Scorecard, an additional credit mechanism found in both Fannie Mae and Freddie Mac, allows the loan to receive an “Approve” or “Accept,” respectively, through both systems, but verification of

the short sale account must be backed up with documentation proving a short sale rather than a foreclosure. Additionally, it was checked to see if the problem was due to specific credit reporting agencies. Thus far, multiple credit agency reports for the same borrower have resulted in the same denial. Unfortunately, Freddie Mac Loan Prospector does not designate which account it is classified as a foreclosure. However, the repository(s) that reports the short sale as a foreclosure can be visually found in raw data of the three repositories—Experian, Trans Union and Equifax—in the credit report. Lenders who want to specifically see this to distinguish the problem need to make sure they contact their credit reporting agency and ask for the MOP (Method of Payment) and a horizontal payment history grid to be available on their report. A screenshot of raw data may ultimately be needed if where the foreclosure code exists is not

evident on the visual credit report. Because of the concern that mortgage traffic will increase in Freddie Mac Loan Prospector if a problem arises in Version 10.0 of Fannie’s Desktop Underwriter with the introduction of Trended Data Credit, we are proactively and respectfully bringing this known problem of short sale credit that shows up as a foreclosure on conventional loans only again to Freddie Mac’s attention. If you are a loan originator or lender who encounters a “Caution” denial in the Freddie Mac Loan Prospector automated underwriting system for past short sellers trying to obtain a conventional mortgage, please contact me at (727) 3758986 or e-mail Pam.M.Marron@gmail.com. To best prepare, make sure that you run past short seller files through both Fannie Mae Desktop Underwriter/Originator and Freddie Mac’s Loan Prospector automated underwriting systems upfront. Don’t wait until the final submission to underwriting.

Pam Marron (NMLS#: 246438) is senior loan originator with Innovative Mortgage Services Inc. (NMLS#: 250769) in Tampa Bay, Fla. She may be reached by phone at (727) 375-8986, e-mail Pam.M.Marron@gmail.com or visit HousingCrisisStories.com, CloseWithPam.com or 8Problems.com.

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Visit us online or contact your Fannie Mae representative to learn how our integrated originating, selling, and servicing technology platform helps you achieve more.

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n National Mortgage Professional Magazine n AUGUST 2016

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Fannie Mae Technology Solutions

AUGUST 2016 n National Mortgage Professional Magazine n

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he other day, I witnessed what I would call one of the most pathetic attempts at a sales call I have witnessed in quite some time. I was visiting a new home community and waiting for my appointment to meet the sales rep. Although this builder has their own mortgage and title company, the sales rep had contacted me because of my experience and reputation working with Boomerang Buyers. As I sat there waiting for her to finish her meeting with the person in the room with her, I could not help

overhearing their conversation. The person speaking was clearly a loan officer. He was well-dressed and seemed to be handing her paper after paper out of his folder. After about 15 minutes, he left with his head slightly bent as if he had just gotten kicked in the stomach. As sad as this sounds, I felt amused and sad for him all at the same time. What did he miss? I give him credit for trying to break in to a new home development knowing that the company has its own in-house mortgage. Now only are they obviously the preferred

lender, but the builder gives buyers a $10,000 incentive when you use their mortgage company and title company. This loan officer made a critical mistake and it’s important for you to go back to all of your marketing and promotional pieces and realize one important piece of information. This is so crucial to your success that I would suggest taking out a pen and paper and writing this down right now before reading the rest of this article. You must know the station every human is tuned into We are all selfish beings and are

tuned into W-I-I-F-M. These letters stand for “What’s In It For Me.” This loan officer was literally vomiting all of the reasons this builder rep should do business with him. He told her about all of the programs he offered. He told her how competitive his rates were and what a high level of service he was able to offer. What did he miss? He never stopped for a second to even ask her anything about herself. He did not ask her about the project itself. He truly never stopped talking. The first lesson of course is to

The One Station Every Real Estate Agent, Builder and Homebuyer Is Tuned Into

BY BRIAN SACKS

She told me exactly how to sell to her This project is in a middle-class area of town, and is slightly above the average sales price for the area. Her in-house lender does not offer first-time buyer bond programs and apparently

are very strict with their underwriting and have many overlays. The other loan officer has no idea of her needs During the rest of my time with her, and only after learning her needs, I was able to walk out of her office with three prospects to call. We agreed, at her request, that I stop by at least one day a week just to check in with her. The bottom line is that she wants to sell homes and I want to close loans. This is a win-win and

satisfies the “What’s In It For Me.” But it doesn’t end with this meeting. The buyers you will meet are all tuned into the same station, “WIIFM.” No one wakes up in the morning and decides they want a mortgage. Listen to your buyers … ask them questions. What’s important to them? Is it the monthly payment or the amount of cash they need at closing? What are their goals? You can’t sell anyone anything until you know that person’s WIIFM.

Brian Sacks is a mortgage loan originator with HomeBridge Financial Services Inc. He is a nationally renowned mortgage expert and loan officer trainer who has closed more than 5,900 transactions during his career. He has trained tens of thousands of LOs and company owners over the past 31 years on how to close more loans and make more money— and still have a life. Learn more at TopOriginatorSecrets.com. You can also watch the Top Originator Secrets show on the Mortgage News Network. He may be reached by phone at (443) 324-8424 or e-mail LoanOfficerTips@gmail.com.

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How did my meeting go? I left the meeting with a big smile on my face. To begin with, this agent requested the meeting with me which automatically put the power on

my side of the table. She had heard about me from some of her peers. She had seen me on TV and had attended one of my classes on working with Boomerang Buyers at the board of Realtors. I didn’t have to tell her I was an expert, she already knew that since I had positioned myself correctly. But what was truly different was that I asked about her. I wanted to know how long she had been in new home sales. I wanted to know how the project was going in terms of traffic and offers. I asked her if she needed any assistance, and if so, what did she need.

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ask and listen. Resist the urge to speak as difficult as that may sound. In my LOUnfairEdge.com program, I discuss the persuasion and manipulation (they are not dirty words) in great detail. But the key is listening 90 percent and speaking only 10 percent. It’s very hard to sell someone a service when you don’t even know what they need or if they even have a need. In this case, this builder rep already had an in-house solution that was the preferred choice. If you are able to listen and asking probing questions, you can discover a need before you start spitting out all of the reasons they should give you a try.

The Never-Ending Cycle of Learning Crafting knowledge through the time-honored art of reading

am proud of my daughter Ava for a million reasons, but the reason I admire most is her commitment to reading. When she wakes up in the morning and comes out of her room, she’s reading. When she eats breakfast; she’s reading. When she brushes her teeth, she’s reading. She is always reading. She reads so much that sometimes it gets in the way of her other responsibilities. Sometimes I have to tell her to stop reading so she can go take care of her chores. We started reading A Tale of Two Cities to her when she was only six-months old and have continued reading with her almost every night since then. And for the last 10 years, we have been telling her that old saying,

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“Readers are leaders.” Apparently, the quote is attributed to Harry S. Truman who said, “Not all readers are leaders, but all leaders are readers.” I think we all instinctively know why “Leaders are readers,” but why is this really true? What was Harry Truman telling us so many years ago?

By Brent Emler

customer service, brand building or leadership. I’ll bet you a dollar to a doughnut that he’s read the book. What we also know about Dave is he is a leader, through and through. I have watched him deftly lead his organization with tremendous success, but even more importantly, Dave is a thought leader in the mortgage industry. Readers are leaders This is where you and I can learn to Most of you know Dave Savage grow as a leader. Intrinsic to the from Mortgage Coach. What many position of being a leader is being may not know is his voracious knowledgeable—we should appetite for reading personal embrace this fact. Dave has terrific enrichment books. If you watch leadership instincts, but his some of his videos or see images of knowledge is what sets him apart. him at his desk, you will see he is His ability to tap into those constantly surrounded by books. I countless volumes of books to challenge all of the readers of this provide clear, thoughtful direction article to e-mail Dave and ask him if or advice trumps all of his innate he’s read a particular book on leadership skills. Vince Lombardi said, “Leaders are made, they are not born. They are made by hard effort, which is the price which all of us must pay to achieve any goal that is worthwhile.” Dave puts time in: Nights, weekends, on the plane, at the hotel when on business travel instead of watching TV. The only way he has read as much as he has about business is if he reads like Ava does: All the time. I have also experienced the power of reading … the commitment to excellence. I will admit though, I have not been as diligent lately as I was early in my sales career. When I was getting Carrington is expanding nationwide. Contact us to learn more started in sales, I thought I would about Carrington and make We are looking for experienced managers be able to wing it—just be the move to expand your and teams to join our organization. personable and knowledgeable business and career. WE OFFER: about my product and I’d have John Cervantes | RECRUITER success. I was wrong … dead Great compensation and benefits John.Cervantes@CarringtonMH.com wrong. I had no idea what I was Operations focused on quality & speed of closing doing and it showed. Three months Marketing support and lead generation in to my sales career, I was Carlos Fernandez | RECRUITER floundering and was on the path to Carlos.Fernandez@CarringtonMH.com Licensing and compliance support failure which scared me to death. Agent co-marketing programs So I decided to start reading about the profession of sales. I decided I would put the hard work in to VOTED TOP BEST PLACES TO WORK become a real salesperson, a professional. I started with Tom Hopkins’ How to Master the Art of WE ARE THE #6 FHA LENDER IN THE NATION Selling Anything and then Dale Carnegie’s How to Win Friends and EQUAL OPPORTUNITY EMPLOYER Influence People and Winning © Copyright 2007-2016 Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites110 & 200A, Anaheim, CA 92806. 800-561-4567. NMLS ID #2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access website: www.nmlsconsumeraccess.org. All rights reserved. Through Intimidation (which is not exactly what it sounds like). I read

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those books and many more. I also listened to tapes. Yes, I said tapes, in my truck wherever I went. For about two years, I immersed myself in the art of selling. By putting in the time to educate myself by reading constantly, I went from the bottom of the sales ladder to the top at my company. I became a leader within the organization relatively quickly, all because I became a committed reader. Here are some examples of famous leaders and their reading habits: l Steve Jobs had an “inexhaustible interest” in William Blake. l Nike founder Phil Knight so reveres his library that in it, you have to take off your shoes and bow. l Bill Gates reads about 50 books per year, which breaks down to one per week. l Mark Cuban reads more than three hours each day. l Elon Musk is an avid reader and when asked how he learned to build rockets, he said “I read books.” l Mark Zuckerberg resolved to read a book every two weeks throughout 2015. l Warren Buffett estimates that 80 percent of his working day is dedicated to reading. Why does reading make us better leaders? l Reading makes us better thinkers: Reading provides us with the opportunity to have new experiences, learn new ways of thinking, and it provides general information to keep perspective and seize opportunities. All of this information and processing power is presented to us in a format that can be consumed in a few short hours. I have never been a whaler, but after a few hours with Moby Dick, I think I might be able to get by on a whaling vessel … maybe not, but I would surely have a better chance than if I hadn’t read it, right? The point, though, isn’t to learn how to actually be or do the things people do in books, but to learn from their experiences and knowledge and then apply it to our own lives. l Reading improves our people skills: One of the most important

qualities in a leader is emotional intelligence, which is basically a fancy way of saying “people skills.” Leaders have a strong ability to decipher how those they interact with are feeling and what is motivating them. Reading, especially novels, biographies and memoirs, allows us to see the world through another person’s eyes. The insights into human nature that reading provides are invaluable to understanding the people around us. Knowing what “makes people tick” is essential to help create organizational alignment, motivating groups of people, and setting organizational goals. l Reading helps us master communication: Words matter and reading uniquely expands our vocabulary. All of my favorite words I know I learned from reading. How about you?

Don’t you just love seeing a new word in print and looking it up to find out what it means? Everyday conversations and entertainment channels, like television, rarely add to our vocabulary. And using the right words, for the right audience, at the right time is a key to successful leadership, isn’t it? Precise verbiage imparts a feeling of confidence in the speaker, and more importantly, provides clarity in a conversation or presentation. Oh the places you’ll go One of my favorite books of all time is Oh the Places You’ll Go by Dr. Seuss. It’s inspiring and practical, and fills the mind with the wonder of what could be. Consider the following line which offered me the opportunity to teach my young daughter what deft and dexterous means: “You’ll get mixed up, of course, as you already know. You’ll get

mixed up with many strange birds as you go. So be sure when you step. Step with care and great tact and remember that life’s a great balancing act. Just never forget to be dexterous and deft. And never mix up your right foot with your left.” In that sentence, Dr. Seuss described many of life’s great challenges and offered sage advice about how to navigate its sometimes murky waters. In his inimitable way, he was telling my four-year-old daughter that life is difficult but that’s okay. One needs to be cognizant of the variety of life. Moderation and self-discipline are essential. Always be true to yourself. All of that in one simple sentence. A single line in a children’s book

offers a lifetime of wisdom. Speaking of Dr. Seuss, in one of his finest works, I Can Read With My Eyes Shut!, Dr. Seuss said the wise words: “The more that you read, the more things you will know. The more that you learn, the more places you’ll go.” I believe he meant it literally and figuratively. I Can Read With My Eyes Shut! was one of the staples of our nighttime reading rituals. My wife and I feel so blessed to have shared a love of reading with our daughter. As parents, we often wonder if we’re “doing it right,” but when it comes to our mutual love of reading, we have no doubt we are. Let’s all learn from the great Dr. Seuss and get out there and start reading.

Brent Emler is director of sales and marketing at Velma.com, a customizable marketing software provider exclusive to the mortgage industry. He may be reached by e-mail at Brent@Velma.com. 55

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Exploring the Next Generation of Learning Management Systems By Angela Pisciotta-Perez Learning Management System (LMS) is a critical component to manage, track and retain regulatory, onboarding, soft skill and company-specific training. With hundreds of solutions on the market, how do you narrow down and select the right one for your company? Prior to searching for an LMS, your team will need to gather key factors on what tools and resources are important in your short and long term training strategies. What types of trainings are you looking to produce? What tools, file types and resources does your system need to be able to

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accommodate for these trainings? How will your users be accessing the system? Do you want a branded platform? Is it important that the LMS provider have pre-published trainings uploaded into the system or available for you to purchase? You may want to reach out to department managers and inquire where most staff is struggling in order to ensure your LMS solution can help address those needs. Once you have determined your key factors, you can start your search online. The information you gather will assist in identifying your company’s needs and save time during the evaluation process. Just from our

initial online search, we were able to input our “must haves” and a few clicks later we had more than 44 Learning Management System companies. With 23 different features, you can easily navigate through each Learning Management System. The Learning Management System search company also asked if we preferred all products available or most popular. Of course, we viewed both options. The most popular provided a scale from customers, users and social. Here are some areas you may want to consider for your key factors … Branding Do you want a system that is customized and branded for your company? Branding options can be more than just logos and colors. It can include customizing welcome screens, navigation and internal and external links. Some LMS solutions go so far as to allow you to create multiple interfaces so that different roles, positions or locations can see a dashboard and layout that is customized to them. Navigation A system that is easy to navigate is crucial for receptiveness for both the student and the administration. Having a clean and simple interface along with allowing your learners to access the system using both web browsers and mobile devices can help lessen the burden of time and the feeling of inconvenience when launching companywide mandatory training. Additional content While you certainly want to have the ability to create and host your own training sessions, consider an LMS that provides or allows you to purchase additional content. This could help engage employees with soft skills and courses that allow

someone to better themselves, ultimately creating a stronger workforce. Tracking and reporting Ensure that the solutions you are vetting have the capability to track and report on your learners’ progress and can serve as your record retention system for future regulatory or audit needs. Tracking can include administrator access to user and course progress, along with system-wide reports, learners access to a grade book, automated e-mail reminders on course deadlines and manager access to direct reports. Add-ons Each LMS system has a number of different unique add-ons that can include integration with human resource systems, automated workflow capabilities, different training or activity types, certificates, quiz builders, social integration, gamification, and so on. Keep an open mind when listening to the different unique features because although you may not have a need or are using them today, they can help take your training platform to the next level down the road. Gamification Gamification is an educational approach to motivate students to learn by using video game design and game elements in learning environments. The goal of this system is to maximize enjoyment and engagement through capturing the interests of learners and inspiring them to continue to learn. I am not sure if you have ever sat through a compliance course, but most would not agree that it’s an enjoyable or engaging experience. Therefore, this may be an added benefit for what your company is looking for. Customer service Customer service is an extremely important factor for any company. Would the company be able to answer your questions in a timely

manner? Everyone has probably had experience with companies who are horrible with customer service and give responses over a week later. If you aren’t able to get assistance via e-mail or calling, then how do you scale a Learning Management System on customer service? You can view their Customer Case Studies to learn more. Each Learning Management System provides tutorials about their system. This provides how many users and courses there are, and how long they have been a customer. Are the LMS systems familiar with the everchanging, over- regulated mortgage industry? Since this industry is so complicated, you may want to use a system that is able to accommodate all of these ongoing changes.

Continuous change As you know, the mortgage industry is continuously changing, and with change comes training on new regulations and products. So your next question should be, would your Learning Management System keep up with the continuous change? How often are they updating, improving and evolving? A Learning Management System should always be looking for improvements and updates. We were surprised that several Learning Management System companies did not have an upload feature. We have training programs where we require students to upload documents. Knowing that we require this feature, we were able to disqualify several companies for this reason.

Finding the right Learning System can be quite a challenge.

Every LMS we reviewed was courteous, friendly and responded quickly to our e-mails. Armed with our “must haves,” we were sorting through hundreds of options and narrowed it quickly down to 44 and within a week, down to three. Keep both your short- and long-term training needs and goals in mind, while keeping an open mind about those add on features and let that act as your compass to finding the perfect Learning Management System for your company.

Angela Pisciotta-Perez is the training and education specialist for Mountain West Financial Inc. and has been with the company for six-plus years. Angela is responsible for the new hire training, lesson plans, and the evaluation and monitoring of students’ performance. She also administers educational and quarterly Webinars, and serves as editor for the MWF Quarterly Staff Newsletter. She may be reached by e-mail at Angela.Perez@MWFInc.com. 57

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Affordability Another “must have” is affordability. I shouldn’t say that our current Learning System quadrupled our pricing but it did! And by doing so it allowed us to see that the grass was in fact greener on the other side. Every Learning System we reviewed had more features than what we currently work with. Not only that, we could gain more time with the auto tracker, testing and certificate features. We could now allow our learners access via their cell phones and/or tablets. Recently, we had the opportunity to vet and select a new LMS. Let me walk you through our process. We had great success with starting at Capterra (Capterra.com). This allowed us to narrow down Learning Management Systems by filtering the results from over 400 down to 44 with a few clicks, ensuring that as we continued vetting and reading about the systems we were only looking at those that fit

our initial criteria. We then dug in a little deeper and started looking at the companies’ websites, reading the reviews and ratings on Capterra and watching short demos, we were able to cut another 30 off within a few hours. Finally, we were down to our top 14. From there, we scheduled one-on-one demos where we could really see the systems, and ask company-specific and training-specific questions.

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Courses Are the fixed courses related to our business? Would we be required to start from scratch? Courses that we didn’t need to create would be a huge time saver, especially for our compliance team. Do they have Microsoft-developed courses? This training would benefit employees on creating documents, scheduling meetings, calendar reminders and building Excel and/or PowerPoints. Some of the Learning Management Systems provide channel learning, franchise, manufacturer and distributors as well. Another “must have” might be the ability to create exams and provide certification. Functionality is essential to provide question/answer randomization, multiple question types, timed exams, answer feedback, max attempt options and re-usable question banks. Results that would be accessible to the learner via a grade book, this would allow the instructor and learner to view and interact. Being provided with editable certificates once the student completed the course would be helpful as well. Some Learning Management Systems aren’t user friendly and creating tests once the employee completed

the training can be a nightmare. You might have to use a different company just to create and track testing. So if you found an LMS that did both, it would be a tremendous benefit to your company.

Certification Is a Must By James Adams, CMSP & Geran Combs, CMSP egulatory mandates are increasing and it doesn’t appear that the climate will change soon. This is both good and bad news. The good news is that many regulations exist to protect the borrower, and others to protect the broader United States financial system. Also, a rapid move to standards in policy, process and data will create significant efficiencies in the market over time. Many lenders and service providers, however, view the new regulatory and associated standards as a burden. They have a short-term view, which, frankly, is easy to understand. For years, they have faced increasing costs, and the new regulations just add to the financial burden. Even though the industry will eventually settle into a standard set of processes and data, it is hard to imagine because it will require significant investment in training, education and certification. The real challenge to the industry, then, is to expand the short-term view into the future and work to understand and leverage the benefits of standardization. It won’t be a simple snap of the fingers, though. The key will be to strategically move along with the industry to a standards-based model, both internally and with all counterparties. Just 10 years ago many of the mortgage processes were manual or used technologies that automated core functions, such as loan application, underwriting and core servicing. Moving data and documents through the origination and closing processes required uploads and downloads, faxes and e-mails. Making matters worse, most of the technology providers used proprietary data sets internally, making it difficult to integrate with other off-the-shelf products. The move to standardization started when the Federal Housing Finance Agency (FHFA)—along with the government-sponsored

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feel that it is critical to stay abreast of MISMO with company and individual involvement. For our employees, we have established a certification tracking challenge for technical enterprises (GSEs) and the process with checkpoints and professionals, who must expand Mortgage Industry Standards regular progress check-in into deep knowledge of the Maintenance Organization meetings. This group mentality mortgage business. So why is (MISMO)—began standardizing provides support and MISMO so widely used? It is now the data required to transact encouragement while discussing business by launching what is now being adopted across the industry individual lessons learned from because it was carefully created known as the Uniform Mortgage each step of the process. To by industry experts over time and Data Program. Most lenders reinforce the importance of this has been battle tested by the understand this by the resulting certification, we have added it to GSEs and others. Quite simply, acronyms of Uniform Loan each employee’s goals, which also MISMO standards work. Delivery Dataset (ULDD), Uniform ensures our clients can trust our MISMO as an organization has Loan Application Dataset (ULAD), consultants as experts in all launched two separate Uniform Closing Dataset (UCD) aspects of MISMO. Also, several of certifications: One for software and so on, yet MISMO remains a our employees teach the classes, products and one for individual mystery to many. so current and future clients can data professionals. Software The Consumer Financial experience our people and their companies can have their products knowledge and expertise in action. Protection Bureau (CFPB) joined certified as MISMO-compliant the movement by focusing on We are exposed to many based on a series of questions and lenders and technology providers standards that arose from the answers in an application, by Home Affordable Modification in the work we do in the mortgage reference or through a third-party Program (HAMP), ensuring data space. Many of our review. Individuals can receive the borrower care based on those engagements involve testing for Certified MISMO Standards timelines and information UMDP data set compliance or Professional (CMSP) designation requirements. CFPB then helping lenders become MISMOannounced TILA-RESPA Integrated through a combination of education compliant. We find that companies and participation. MISMO offers a Disclosure (TRID) Rule or “Know involved in MISMO are way ahead full suite of supporting training and of the curve. Before You Owe,” which education that ranges from handsstandardized both the processes Software certification is a formal and forms required to originate and on participation in open work evaluation process completed to groups, to classroom sessions and ensure that a software package close a loan. Most recently, the virtual courses. With these CFPB announced a new standard meets identified functionality, for Home Mortgage Disclosure Act certifications, MISMO adds value to expectations and/or standards. In the industry indirectly by providing (HMDA) reporting. Again, MISMO today’s competitive environment, training and certification, and was instrumental, working closely having one or more third parties with the CFPB, to ensure that data directly by identifying people and provide accreditation to a software required for both TRID and HMDA software products that are “MISMO package is the best way to give Compliant.” leveraged standards when credibility that the application The CMSP certification process possible. resolves the identified need. We expect an ongoing increase was smartly written to include In order to demonstrate how a participation as 25 percent of the in process, regulation and data software certification can add total certification points standards, with some to be value to your organization, let us requirement. This encourages announced this calendar year. look at a real-life example. active work group participation What many industry participants Recently in the mortgage industry, with extra points for taking don’t realize is that many CFPB introduced TRID. Also, leadership roles in work groups government entities in the Freddie Mac and Fannie Mae have mortgage and lending community and/or serving as work group been working jointly to develop representative to another work (not just the FHFA and CFPB) various data specifications under group. Attending more work groups the UMDP that define the data meet regularly for the sole provides exposure to different parts delivery rules for the mortgage purpose of working towards a of the model, rounding out an standards-based approach with industry. These data specifications individual’s knowledge and specific regard to MISMO. follow the data models maintained expertise. Also, the time allotment MISMO is a complex topic for by MISMO. These changes have most business professionals. The for attending and participating in created a significant need, as data standard involves technology these work groups is a very mortgage industry participants will feasible couple of hours per month. be required to deliver data, that like XML and is represented in a At Actualize Consulting, our schema of thousands of data follows the MISMO data Mortgage and Fixed Income elements covering the life of the standards, to Fannie Mae and Practice focuses exclusively on loan and all portions of the Freddie Mac, while complying with the lending space, with specific process. For business people, it the TRID regulation. attention to mortgage and might as well be Greek. Truth be To assist the mortgage industry mortgage-backed securities. We told, MISMO can also be a in fulfilling this need, our example

company produces new software that creates data that precisely follows the rules established in the UMDP data specifications. How can this company give credibility to its new software package? Thatâ&#x20AC;&#x2122;s right, software certification! Letâ&#x20AC;&#x2122;s look at the options. MISMO offers a certification for software that complies with all MISMO standards, while Fannie Mae and Freddie Mac offer an endorsement for software packages that are fully compliant with the given UMDP data specification. Our example company submits its software package to MISMO, Freddie Mac, and Fannie May for evaluation, and receives favorable assessments from each submission. Now our example company has a MISMO certified software application that is also endorsed by Freddie Mac and Fannie Mae, adding significant industry standing to this newly

developed software package. Though software certifications have been in the industry for many years, it may be a new idea to realize just how powerful they can be. Software certifications add credibility and acknowledgement of the scope of a companyâ&#x20AC;&#x2122;s industry mastery. Also, companies that have software certifications are more easily integrated with Freddie Mac and Fannie Mae for UMDP than companies without. If it were exclusively your decision, who would you call for assistance with UMDP data delivery: a company endorsed by Fannie Mae and Freddie Mac with a MISMO certification, or one without? So, if you are an executive with a lending institution or a service provider ask yourself the following questions:

receive an individual CMSP certification? l Are the people we hire to help us with MISMO integration certified? l Are the software products that are critical to my company MISMO compliant? Given where the industry is moving, it makes sense to get involved and have at least some focus on MISMO. Depending on bandwidth and other priorities, this shift may be difficult, but it will

l Is our company participating in MISMO? l Should I have some of my staff

become critical for your company to be able to transact business using industry standards, specifically MISMO. CFPB will leverage standards and it is safe to assume that they will measure compliance with the processes and data reflected in MISMO. The industry isnâ&#x20AC;&#x2122;t going back to the olden days when it was okay to jam data into forms and clean things up at closing. The industry is moving ahead and standards are paving the way. Make sure you are not left behind!

James Adams is a manager at Actualize Consulting with 15-plus years of project management experience in information technology and financial services. He may be reached by e-mail at JAdams@ActualizeConsulting.com. Geran Combs is a senior manager at Actualize Consulting with 21 years of experience in the Financial Services industry, including more than 16 years of data management experience. He may be reached by e-mail at GCombs@ActualizeConsulting.com. 59

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,+**)('&%(+$#"#*&!(+ (+"$ ( & &"&'(+$#"#*& * )*+& * *)& &" & & $"$* & % & & &!(+ (+"$*&( *& ( "$*)&"$& & *" " $& " * & * * & $*& &%$& " +* & & & & &Please visit our website at www.freedommortgage.com/state-licensing for our complete list of state licenses. This communication is sent only by Freedom Mortgage Corporation and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This information is intended for use by mortgage brokers and other industry professionals. This is a business-to-business communication and is not an advertisement to or solicitation of a consumer. For additional information about Freedom Mortgage Corporation, please visit the NMLS Consumer Access page at: nmlsconsumeraccess.org. Equal Housing Lender. ÂŠ Freedom Mortgage Corporation. All rights reserved.

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Conquer Your Fear bout this time of the year, the mortgage industry is abuzz with talk of upcoming continuing education (CE) requirements. My theme has always been the real life things a CE class does not teach you but should. I usually bore you with an episode of something that happened to me which I did wrong and how it cost me a commission. I like to call that “paying tuition.” But, not this time … A crucial aspect of being a loan officer is the ability to speak in front of a group of real estate agents to sell yourself. I was amazed to find out that many successful loan officers have a fear of speaking to large groups. I will admit (usually only when I am

By Eric Weinstein

very tipsy), I have the same fear. I am okay one-on-one, but put me at a podium with a roomful of people and my legs begin to wobble. So I joined Toastmasters to conquer my fear. This is the speech I just gave to a room full of Toastmasters the other night, rubbery knees and all: And the Lord said, “Let there be light,” and there was light. In the Jewish religion, this phrase is taken quite literally. It is said the universe was created with the Lord’s spoken word. I don’t think people realize the power they have with the spoken word. Many religions believe the actual laws of physics can be changed with the spoken word.

One example is the religion of Wiccan. If you don’t know, Wiccan, also known as Pagan Witchcraft, is a recognized Earth religion with hundreds of thousands of followers worldwide. I am sure you have heard of the concept of casting spells with witchcraft if you are a Harry Potter fan … but this is the real deal. In this religion, basically, you verbalize what you want using certain rituals and it will happen. Enough people believe in this that IRS considers it valid religion. Sounds crazy huh? Well, you can see the same notion in Judaism, Christianity and Islam. It is called prayer. It is said, if you pray hard enough for something, no matter how unlikely, it could happen. How many times have you heard of someone’s prayers

coming true, no matter how miraculous. Okay, let’s say you are not religious, let’s take religion out of the equation. I think everyone has heard of “Positive Affirmations.” It is the same concept. If you say it out loud, your brain concentrates on it and it comes true. This is the same idea as prayer. The spoken word is a powerful tool. Why is that? It all starts with speaking with confidence and conviction. I have noticed, if you are deathly afraid to speak in front of a stadium of 50,000 people, you are kind of afraid to speak in front of 100 people and a bit nervous to speak to just one person. This fear all stems from a lack of confidence. The only way to overcome a fear is to face that fear. Once you face it, you will have more confidence for the next time. Growing up, I was always afraid of heights, so as soon a turned 18,

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I took lessons and went skydiving. I grew up in South Florida and once found a snake in my room. Ever since then, I was afraid of snakes. So in college, I bought a python as a pet. It forced me to learn how to care and handle it. You see, fear is the enemy of confidence. As fear goes up, confidence goes down, and viceversa. So what is fear and how do we conquer it? Fear is worrying in anticipation of the future. Nine times out of 10, the fear is only in your mind and once you do it, you see it wasn’t so bad. To get over the fear, you just have to gird yourself and just force yourself to do it. Like the commercial says, “Just do it.” So how do you “Just do it?” In the back of your mind is a voice saying, “No don’t do that, it’s scary. Then, there is another voice saying. “Go on, it will be okay.” Push the negative voice to the back of your head and

concentrate on the positive voice. Once you have confidence, the universe opens up for you. In turn your life opens up financially, socially and relationship-wise. You do better at work, you gain more friends and you do better with the opposite sex. Good things start to happen to you. People like a winner. The universe likes a winner. Confidence is what makes you a winner. I don’t care if you had some traumatic experience growing up like me, that is all in the past. Your life starts today. You can change your life for the better starting right now. The longest journey begins with the first step. Don’t think about it, don’t agonize about it, Just do it! Put fear aside. Don’t listen to it. John Lewis said: “If not us, then who? If not now, then when?” I change that to: “If not now, then when? If not you, then who?” If you don’t do it now, you will never do it. Now is the time to

change your life for the better. Take the first step, this week, today, now! Am I supposed to change your life? Your mother? Your neighbor? No, only you can change your life for the better. Take responsibility. Building confidence is the only thing holding you back from improving your life … start the process now. Now, admittedly, this was written for one group of people with one specific fear, but the concept is still valid. Whether you own a small mortgage company,

are a top producer or manage a large bank, everyone has a fear. The only way to overcome your fear is to roll up your sleeves and face it. You can take baby steps. If you are afraid of lack of business, work up a new marketing campaign right now. If you are afraid of the new software your company just bought, start learning it now. If you don’t understand the TRID process, immediately jump into it and ask for help. Education is what truly conquers fear … just do it. Do it now. Conquer your fear.

Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. Eric is semi-retired, doing mortgages by referral only. He may be reached by phone at (703) 505-8692 or e-mail EWeinstein4U@gmail.com. 61

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A History of Regulatory Changes in Appraisal and the Challenges of Staying Informed By William Waltenbaugh, SRA, AI-RRS hen I started in the appraisal business in August of 1990 in the state of Ohio, there were no official regulations or requirements to become an appraiser. If lenders sent you work, you could call yourself an appraiser. That said, many lenders did require some degree of appraisal related education and being a member in or having a designation with one of the national appraisal related organizations was helpful in finding and securing new business. This was important because these organizations

were able to provide some accountability and structure through their by-laws and peer review arrangement. However, only about 30 percent of practicing appraisers belonged to one of these organizations. As such, for the most part, the industry was self-regulated. The client, through the loss of business, applied the only meaningful discipline for unethical and/or incompetent behavior. In short order, this all changed due to the Savings & Loan (S&L) crisis of the 1980s. With the finger of blame firmly pointed toward appraisers, what followed is a long list of regulatory requirements implemented to

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oversee appraiser qualifications, standards and accountability. The first of many regulations started with the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989. Out of FIRREA, the states were charged with overseeing the regulation of appraisers through a licensing and certification process. This act also formed the Appraisal Subcommittee (ASC) to oversee The Appraisal Foundation (TAF) and the state regulatory authorities. With its two boards, the Appraisal Standards Board (ASB) and the Appraiser Qualifications Board (AQB), The Appraisal Foundation was charged with setting the standards and qualifications for real estate appraisers. The Uniform Standards of Professional Appraisal Practice (USPAP) was also adopted as the generally recognized ethical and performance standard for the appraisal profession. USPAP is updated every two years and compliance is required for all licensed and certified appraisers involved in any federally related transactions. For years, not much changed from a regulatory perspective until the mortgage meltdown of 2008. Many of the concerns surrounding the meltdown pointed to inflated appraisals as a result of pressure being applied to appraisers by the clients who ordered them. Because appraiser independence is a critical component in the mortgage transaction the first shot to correct this pressure was in the form of a private agreement between the governmentsponsored enterprises (GSEs) and the New York State Attorney General Andrew Cuomo in May 2009. This agreement, known as the Home Valuation Code of Conduct (HVCC), is more accurately described as an industry standard as opposed to a federal regulation. Nevertheless, HVCC effectively created a barrier in the ordering process between a lenders loan

production staff and the appraiser. HVCC was short-lived because on its heels was the passage of the Dodd-Frank Act in July 2010. Part of the provisions of the Dodd-Frank Act was the sunset of HVCC in August 2010. Although no longer enforceable, at the direction of the DoddFrank Act, the spirit of HVCC and its appraiser independence provisions are codified in the amended rules of Regulation Z of the Truth-in-Lending Act (TILA). Similar language can also be found in the GSEâ&#x20AC;&#x2122;s Appraiser Independence Requirements and the Interagency Appraisal and Evaluation Guidelines. Other significant changes in the appraisal industry, as the result of the Dodd-Frank Act, is the creation of the CFPB that is responsible for administrating the new laws and regulations of the act. It also sets the stage for mandatory reporting and that fees paid to appraisers be customary and reasonable. In addition, due mostly to the proliferation of appraisal management companies (AMCs) as the result of HVCC, state regulatory authorities are now required to register and regulate AMCs and the ASB must maintain a National Registry. Although the Dodd-Frank Act was passed in 2010, many of the above requirements are still in the process of being implemented and the details of others are still being debated. In brief, there is a lot of work to be completed and in turn a lot of necessary education. In December of 2010, the Interagency Appraisal and Evaluation Guidelines were modified and include direction in regards to the difference between an appraisal and evaluation and when each must or can be used in a transaction. The Guidelines also make it very clear that a lending institution must exercise due diligence in selecting and monitoring third party arrangements regarding appraisal and evaluation outsourcing. This oversight also includes policies for the lender to ensure the thirdparty they use selects an appraiser who is competent, independent and has the

not only as a way to educate their own staff but also offer them as an expert resource to their panel partners and smaller clients. This can be accomplished through regularly scheduled newsletters, timely blog posts, Webinars, or even classroom trainings. Iâ&#x20AC;&#x2122;ve personally provided this service to both our appraiser partners and clients using all of the methods noted above. Another resource to keep upto-date with changes is by attending industry meetings and conferences. These venues often have speakers who are experts in their respective fields and can provide timely education and insight regarding current and upcoming changes. These settings also provide good networking opportunities with your peers. Talking with others who are navigating the same challenges is an excellent way to gain additional understanding on how specific industry changes might affect your own business model. This can be a big help in understanding what changes you may need to make in order to be prepared. At AXIS, we have an annual appreciation party where we invite both our appraiser partners and clients to attend an open house during the day with

breakout sessions to inform clients and appraisers alike, and a cocktail reception in the evening, followed by a second day of appraiser CE. In an industry where much emphasis is placed on keeping clients and appraisers apart, it is refreshing to bring both together in a relaxed atmosphere where transparent, open, and nonspecific conversation is encouraged. Hearing the perspectives of other participants in the mortgage process can provide a lot of clarification and understanding. At the end of the day, weâ&#x20AC;&#x2122;re all just trying to do our job. Letâ&#x20AC;&#x2122;s not forget that many in the industry are required to take continuing education (CE) to maintain their respective credentials. If you have to take CE, why not look for education

that specifically addresses recent or proposed upcoming changes. You have to spend the time, why not spend it learning something new. Be selective and donâ&#x20AC;&#x2122;t be afraid to pay a little more if needed. CE is often an additional benefit of attending a conference like I mentioned above. It may cost a little more but the cost is offset given the timely information and available networking opportunities. I totally understand compliance and regulatory changes isnâ&#x20AC;&#x2122;t the most exciting thing to deal with in your day-to-day operations and it typically doesnâ&#x20AC;&#x2122;t make us any money. In fact, more often than not, it costs us money and can be downright expensive. However, although compliance can be expensive, the cost of noncompliance can be even greater.

63 William Waltenbaugh, SRA, AI-RRS is chief appraiser at AXIS Appraisal Management Solutions and is a certified appraiser with more than 25 years of experience in the real estate industry. With several years of experience as a chief appraiser and director of compliance, he has developed a proven track record of implementing necessary policy and procedures to ensure quality and compliance. William may be reached by phone at (888) 806-2947, ext. 331 or e-mail BWaltenbaugh@AXIS-AMC.com.

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requisite experience and knowledge for the assignment. In addition to the above regulations, the GSEs have also made numerous changes over the past several years. In 2011, the GSEs established the Uniform Appraisal Dataset (UAD), and in 2012, the Uniform Collateral Data Portal (UCDP). Together, these changes standardized the appraisal writing process and provided a single point for appraisal delivery. These two changes also paved the way for the execution of Fannie Maeâ&#x20AC;&#x2122;s Collateral Underwriter (CU) in 2015 which is designed to be a risk tool used by lenders to support proactive management of appraisal quality. Not to be outdone, FHA recently implemented a separate, but very similar, standardized appraisal writing requirement outlined in their Data Delivery Guide along with their very own Electronic Appraisal Delivery (EAD) portal. FHA recently replaced the 4150.2 valuation guideline handbook with their new single-family housing policy handbook 4000.1. Itâ&#x20AC;&#x2122;s also worth mentioning that in October 2009 FHA made a change that requires a certified credentialed appraiser complete all FHA assignments. Appraisal trainees and licensed appraisers are prohibited from signing an FHA report. With all of these changes and no doubt more to come, one has to wonder, how does an industry with so many participants keep current. For those who operate nationwide, 55 separate state and jurisdictional regulations are enough alone to make your head spin. The answer of course involves careful planning. For larger organizations this challenge can be accomplished easier through hiring specialized personnel or entire departments dedicated to compliance and industry changes. For smaller organizations this task can be more challenging. To assist in this regard, many larger AMCs use their specialized personnel

The Right Investment in Learning or the past eight years, building mortgage talent within the mortgage industry has been a roller coaster ride. It started with increased regulatory requirements followed by the bottom dropping out of the talent pool with the recession. As a result, the mortgage industry is just starting to embrace the value of talent management in operations. However, compared to corporate America as a whole, the mortgage industry has a long way to go before training is widely accepted as a core value supported by a mature strategy and meaningful investment.

Setting the stage The SAFE Act of 2008 set the stage and forced lenders to establish regular training for loan originators. This Act at least placed a line item for education on the P&L for the sales team. The cost of sales training in general is easier to quantify through improved gross and net originations. Therefore, it holds a solid position in the budget. For operations, it’s a different story. At many lender shops today, setting aside funds in the budget to train processors, underwriters and closers is a tall order. The budget usually allows for only a basic set of self-study classes followed by throwing the person into the fire and shadowing a

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co-worker who doesn’t have time to provide real instruction. The increased oversight by the Consumer Financial Protection Bureau (CFPB) has nudged lenders to recognize the need to increase the investment in training the operations team. Yet most lenders simply scramble to grab the easiest and cheapest self-study courses on the market in order to check the box and have certificates in the event of an audit. For many lenders, the need to close loans with the least amount of overhead puts pressure on the time and money available for education. Learning maturity This constant pressure to close loans keeps much of the mortgage industry at Level 1 and Level 2 maturities in learning. Learning maturity is defined in many ways. A company is considered to be Level 1 Maturity when the strategy and governance are not defined and employee development is adhoc. Lenders at a Level 2 Maturity have a Learning Management System (LMS), but don’t fully leverage the analytics and are missing learning competency for all job functions. Companies at Level 1 and Level 2 Maturities have training development tied to business goals and just enough reporting to keep the CFPB at bay. The table on page 65 illustrates the indicators and the characteristics at each level of maturity. Where does your organization fall on the grid? If you have an LMS, then you at least have one foot toward being at Level 2. The areas many mortgage companies lack for full Level 2 status are aligning the training with business goals, service level agreements (SLAs) with defined objectives and competency-driven training development that is competency-driven. Defining the objectives within SLAs is a key component. Each

position in the mortgage manufacturing process should have defined SLAs such as turnaround times, number of days between key points in the loan process etc. Training should be aligned to help individuals achieve these SLAs as well as their individual performance improvement plans. Lack of L&D investment It takes planning and investment to move up each level in learning maturity. It is common to see a mortgage lender of 200-300 employees have only one person dedicated to administering the LMS, as well as content management. The cost of the LMS and typical administrator salary is an investment per employee as low as $400-$600 per employee. By comparison, research published by Bersin by Deloitte in the WhatWorks Brief Corporate Learning Factbook 2015: Benchmarks, Trends, and Analysis of the U.S. Training Market, showed that learning and development spending per employee for Level 1 Maturity, across a mix of industries, at $956 per employee. This illustrates how far behind the mortgage industry is in its commitment to investing in talent management. Another interesting point in the publication is the drop in training spending during 2008 and 2009. The mortgage industry was no exception here and we are still feeling the gap in knowledge and experience today. Setting up the right tam Once an organization grows beyond 150 employees, managing the talent, LMS and building the right content for a mortgage operation requires a team. A “super administrator” of the LMS is a must-have position for a company with 150- 250 employees. This “super admin” will still need the support of the LMs provider in times of hiring and when system customizations are needed. A good LMS provider will offer support services to add a variable cost component that facilitates peak times and change management. The same size organization needs to leverage out-of-box self-

right LMS, having a strong LMS administrator, dedicated content managers, and experienced

Indicators

outsource service partners to create a true talent management system.

Alice Alvey is senior vice president at Indecomm, leading the Indecomm-Mortgage U Division, Internal QA and Compliance. She continues to conduct consulting engagements, create customized mortgage training programs, as well as develop compliance product and procedure manuals. She is the author of Indecomm’s FHA Practical Guide and VA Practical Guide. She may be reached by e-mail at Alice.Alvey@Indecomm.net. Level of Maturity

Level 1

Level 2

Level 3

Level 4

Strategy

Not defined

Aligned with business

Business-focused

Organizationally-aligned

Governance

Limited governance

Policies and Learning Council

Partial governance through automated forms and templates

Automated governance through templates

Disjointed Policies and Procedures

Defined SLA’s

Unclear Service Level LMS governed through Agreements (SLA’s) templates

Ad-hoc

Competency Model

All the job functions

Competency Driven Integrated HR systems

Use Competencies to align HR systems

Recruitment to retirement

Ad-hoc training needs Ties to business goals

Documented competencies for all the job functions

Extended global reach

Limited tie to Competency-driven organizational strategy and standardized

Learning content focused around competencies

Self-service support for training development

Self-service and support

Social media/Web 2

Employee Development

Disjointed HR systems Career Development Plan No Competency Model Training Development

Platform Enabled

One size fits all Content Delivery Instructor led

eLearning & mobile

Content delivery strategy On the job and application based

Integrated gateway

Disparate systems Reporting

Informal learning platform

Accurate training records

Pre- and postassessments

Personalized dashboards

Compliance metrics

Percentage of programs complying with Learning Strategy

Analytics on business value achieved through training

Training days per employee

Score cards focused on training

Percentage spent on training

Need, time to develop and cost of delivery

Primarily LMS driven

Integrated reporting from HR systems hire, train, appraise, develop, promote and pay

n National Mortgage Professional Magazine n AUGUST 2016

Becoming Level 3 and 4 Maturity There are a few lenders who have embraced Level 3 and Level 4 Maturities and have fewer than 500 employees. It is amazing to see the dedication from the staff and the efficiency and customer service throughout the organization. For a company of 500-plus employees, spending $950$1,300 per employee represents an average $500,000-$650,000plus annual investment in learning and development. Keep

in mind, this investment calculation should not include mandatory SAFE Act training unless the content in the training is evaluated and aligned specifically with company goals. If the loan originator is selecting his/her own courses, then chances are it’s about checking a box and not contributing to their overall growth. It takes an investment in the

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study content that can be customized into an affordable and easy software program. Oftentimes a training topic needs only simple adjustments to help learners apply the knowledge to their specific process. This is another opportunity for a content provider to support the organization without having to take on full time staff. The tipping point when company specific content becomes critical is 250-300 employees. When the company is smaller, it can still manage with existing team leads conducting training using Webinar formats. However, once the numbers hit the 250-300 range, or growth occurs rapidly over 200 FTE, the staff changes, volume, and market shifts create an ongoing need to onboard team members quickly. At this point, the super administrator is constantly managing people and reports and has little time to pay attention to content. The managers at the company have no time to develop training and team members are in need of a clear path to grow from one job function to the next. The number of job functions also increases at this tipping point. Where there used to be a processor, there is now a set up clerk, disclosure desk as well as junior and senior processors. Learning content must fit the role in a very specific way in order to have effective seat time and develop knowledge that can be quickly applied on the job. Here, a content manager is needed to coordinate out of box resources, and serve as project manager to outsource content development.

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The Importance of Continual Education and Training in Our Business By Paul Lucido

d ur

the impartment of vital information is just one of the fiduciary responsibilities of employers, which allows each member to perform their job more efficiently, and consequently allows the larger entity to carry out its responsibilities for the mortgage industry. The importance of peer training As stated before, understanding the importance of learning from others is crucial to a company’s growth and sustainability, and is necessary for employers and employees alike. The ability to gain insight from a colleague’s experiences—trials, tribulations and successes—is invaluable and should be utilized when exploring new ideas and embarking on new projects. As follows, having senior staff impart their wisdom and working knowledge of how they do things—which practices work best under which circumstances—creates an enriched environment that is engaging and educational, establishing an interactive mode of operandi. This type of learning environment encourages and fosters all staff to share thoughts and ideas and learn directly from their team members, both at the top and in the trenches.

Paul Lucido is national marketing director for Paramount Residential Mortgage Group Inc. (PRMG). He may be reached by phone at (951) 547-6311 or by e-mail at PLucido@PRMG.net.

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One case example Companies like PRMG, for example, place a high emphasis on investing in education. In fact, they have taken it upon themselves to provide a state-ofthe-art training facility at their corporate location where they host live trainings and seminars. PRMG University, as it is called, also coordinates annual NMLS SAFE Act and certified training and education for loan officers and brokers. They have partnered with approved mortgage insurance companies to offer training that is provided exclusively for staff and customers, ensuring that all training activities are both accredited and effective. “We began publishing a monthly calendar of available training classes through PRMG University in the summer of 2015, which we continue in effort to increase and fine-tune the class offerings,” said Lara Rausch, vice

president of Product Training for PRMG. “Many of these classes are also available to our brokers and correspondents, helping them to expand their knowledge and become better in their field and, hopefully, establish a loyal partnership with PRMG. We recently began creating training videos that can be found on the PRMG University YouTube channel. These videos allow for on-demand learning and repeated viewing. We intend to continue creating training material this way and expand our library of training videos on this site.” Beyond live training, it is also important to offer monthly classes via Webinars in order to accommodate staff and customers across the nation. Our firm is not only a proponent of continual education, but accessible education. Whether facilitating product training, compliance or orientation for new employees, it is important to establish a haven of education dedicated to ensuring each employee’s understanding of the company’s vision of excellence. Their orientation experience merely sets the precedent for the education to come, gearing them up for PRMG’s continuous regimented trainings which are aimed at enhancing all facets of the employee’s career, ensuring personal long-term growth and success. Again, PRMG is just one example of a company that highlights the importance of education, not only on a philosophical level, but in a tactile manner. With PRMG University, they have made great strides toward providing the best possible education not only for their sales staff and operations teams, but to their valued business partners and customers. The overall goal of continual education is to increase employee satisfaction, improve performance, increase productivity and ensure long-term sustainability. Companies alike should adopt such principles and practices to ensure each member is equipped with information that is current and relevant to their respective work situation, ultimately fostering a symbiotic workflow that creates an environment of efficiency and delivers enhanced customer service to their clients.

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Keeping up with a changing landscape It is evident that there is an increasing need for education on many frontiers in this modern age, particularly the mortgage industry as it can have a direct impact on company growth, and thus the efficiency of the company in providing services for its patrons. Ensuring that all employees develop a collective knowledge and a well-rounded understanding of all facets of business operations is vital to the sustainability of a company and running it efficiently. Like clockwork, each cog must function cooperatively to assist the larger function of the clock as a whole; if the goal of each employee is not unanimous, the corporation cannot reach its full potential. The difference, however, between clockwork and a team of individuals working toward a mutual cause, is that each member does not run on auto-pilot. Rather, they have the ability to choose whether or not and how much they wish to dedicate themselves to their practice. So, how do we ensure that each member not only performs their task, but is inspired to do so? The answer is simple: Through education. If everyone has a common understanding of the goals and functions of the company, understanding not only how but why things are done the way they are, everyone feels like they are on the same page, and more importantly—like they have a say. As we continue to adapt to the ever-changing landscape of the mortgage industry, we as leaders need to ensure that all those working with and alongside us are apprised of ongoing regulatory changes that could potentially affect our industry and livelihoods on a daily basis. In order to ensure that staff and customers keep abreast of relevant industry changes, companies need to be constantly training and educating their employees on relevant topics, such as the recent HUD 4000.1 handbook release, or Fannie Mae’s Collateral Underwriter and/or recent self-employment changes. Furthermore, in conjunction with compliance departments, we need to be training on TILA-RESPA Integrated Disclosures (TRID), the Qualified Mortgage (QM), as well as any ongoing changes with the Consumer Financial Protection Bureau (CFPB). Educating employees on matters involving

heard on the street

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under 45 days, this Web-based standalone solution enables Colony American Finance to fully automate its new conduit business. OpenClose’s OC Correspondent module incorporates a seller-facing Web portal that allows correspondents to electronically deliver loans to Colony American Finance for purchase, access instant eligibility and pricing, automated lock desk functions, real-time pipeline status, and comprehensive cure condition and purchase advice workflow. OpenClose customized and streamlined Colony American Finance’s entire whole loan purchase workflow, including the automation of quality control, compliance, analytics, reporting, document management and imaging, and more. OpenClose’s correspondent module functions as a stand-alone solution and also integrates with its end-to-end LOS, LenderAssist. “Our initial focus is to implement OpenClose to support our Single Asset loan product to launch our correspondent channel, followed by wholesale and retail channels,” said Matthew March, CIO at Colony American Finance. “We are excited to leverage the capabilities of the OpenClose technology platform to optimize the entire process for our team and our partners. We needed the right technology to achieve these goals and OpenClose’s correspondent module will efficiently and effectively automate the review, acceptance and processing of loans from our correspondent sellers. It gives us complete control and visibility over the entire loan lifecycle, which OpenClose tailored to our specific Single Asset loan products and processes for us.” “Our correspondent module is ideal for organizations like Colony American Finance that want to quickly and compliantly launch a correspondent/conduit lending business; or, to streamline and ignite an existing channel,” said Vince Furey, SVP of Lending Solutions at OpenClose. “Colony American Finance has launched a progressive and exciting singleasset loan product offering and we’re thrilled to be their technology partner. I expect they will be hugely successful using the OpenClose solution to augment their conduit business. OC Correspondent is very intuitive

continued from page 42

and easy-to-use, end users don’t need much experience in the conduit purchase space to utilize our software.” LRES Acquires Commercial Evaluation Provider InsideValuation

LRES has announced that it is now offering commercial evaluations through its acquisition of InsideValuation. Performed and reviewed by its strong network of more than 25,000 field agents, these evaluation products contain thorough data and analysis to procure accurate and timely valuations for commercial properties. These evaluations incorporate several approaches to determine value, including comparable sales analysis and an optional income approach. Evaluations are more costeffective than traditional commercial appraisals, reducing valuation costs by up to 75 percent. They also reduce turn time by as much as 50 percent or more, with standard 10business day turn time or optional five-business day rush option. These valuation products can often be used in situations that do not call for a full appraisal, and there are a number of cases covered in the interagency guidelines that allow the lender to forgo a full appraisal. Commercial evaluation reports address construction quality, site utility, current zoning, assessment information, highest and best use, projected use and external obsolescence. The reports also analyze local market trends, including vacancy rates and the subject’s neighborhood. Land-only evaluations are also available. All evaluation reports include a site inspection performed by an experienced field agent along with current subject photos obtained at the time of inspection. All evaluations are fully compliant with the Interagency Appraisal and Evaluation Guidelines (IAG) and the Office of Comptroller of the Currency (OCC) requirements. LRES’ InsideValuation team reduces

compliance risk through its thorough evaluation quality control process, as evidenced by its less than two percent kick-back rate. LRES’ commercial evaluations are offered through a different portal developed by its technology team in Reno, Nev. “Our commercial evaluations live up to the high standards we place on our residential valuations, and our diversified offering provides even more options for our valued customers,” said Roger Beane, founder and CEO of LRES.

Enterprise Data. FGMC has also announced that Joaquin Torre has joined the company as senior director of Capital Markets. l Ray Brousseau has been promoted to the position of president of Carrington Mortgage Services. Brousseau’s broad expertise includes nearly 30 years of mortgage banking and consumer finance experience. l Michigan Mutual has named Mike McCarthy as an account executive in the state of Oregon, where he

will manage accounts in Bend and Portland. l The Alabama Association of Realtors (AAR) has named Jeremy Walker as its chief executive officer, promoting him from his role as interim chief executive officer and senior vice president, general counsel and government affairs director. l LeaderOne Financial has named Todd Leddon senior vice president of Capital Markets. Leddon has 15-plus years of mortgage banking continued on page 78

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Mortgage Professionals to Watch l Redondo Beach, Calif.-based Civic Financial Services has announced four new additions to its team. Both Ali Elwakeel and Summer Martinez join Civic Financial as senior account executives, Serena Yang has been named director of Marketing for Civic Financial Services, and Sophie Kim as director of Learning & Development at Wedgewood Inc. & Civic Financial Services. l Paramount Residential Mortgage Group (PRMG) has announced the hiring of Jay Boand as the director of the company’s Correspondent Division. Boand brings more than 11 years of industry experience to PRMG. In his new role, he will be responsible for all correspondent lending activities, with a focus on optimizing the efficiency of the loan fulfillment process and delivering world-class customer service. l HomeBridge Financial Services Inc. has continued to expand its capabilities along the East Coast with the addition of four experienced mortgage loan originators in key growth markets: Robert Chain in Rocky Hill, Conn.; Casey Hanagan in Rockville, Md.; Stephen Samard in Greenville, S.C.; and Joel Van Asch in Johns Creek, Ga. HomeBridge has also increased its presence in the state of Florida with the addition of three mortgage loan originators in its growing branch locations across the state. Among the most recent loan originators to join HomeBridge in Florida include Arin Noyes in its Palm Coast Fla. branch, Brian McMahon in Bradenton, Fla. and Mark

Sherman in its Jacksonville, Fla. office. l First Guaranty Mortgage Corporation (FGMC) has announced that mortgage industry veterans David Sorsabal and Marty Richardson have joined the company as account executives for the Correspondent Division– Western Region. FGMC has also announced that William Johns, an expert in enterprise data management specific to the financial services industry, has joined the company as director of

Scenes From the Ultimate Mortgage Expo 2016 July 11-12 at the Hotel Monteleone in New Orleans

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NMP Mortgage Professiona Allen Beydoun Executive Vice President United Wholesale Mortgage BY PHIL HALL

llen Beydoun is executive vice president of sales at Troy, Mich.-based United Wholesale Mortgage (UWM). Allen recently sat down with National Mortgage Professional Magazine regarding his career and his outlook for the industry in the months to come.

How did you first get involved with mortgage banking? Was this your original career path? No, mortgage banking wasn’t my original career path. Originally, I was the branch manager for a bank in Southeast Michigan, and we had a working relationship with a mortgage company. Our goal was to pass on leads to mortgage originators that worked inside of our branch offices and I was personally referring five to seven clients to an originator in my office. I started doing some research and realized that mortgage originating could be a successful field to be in, with flexible hours and an opportunity to make a great living. Once I was able to gain a better understanding of the industry, I started to work for a small broker shop and also worked a little bit in retail. I found that being a broker was more rewarding than working for a retailer. I was able to give my clients more options and provided them with a higher level of client service. I loved what I was doing, I was passionate about it. Knowing that you are helping someone make one of the biggest financial decisions in their life was a feeling of accomplishment in itself. My goal became to

consciously connect people with the right products that they could afford. How did you first become associated with United Wholesale Mortgage? Someone from UWM noticed my resume online and asked me to come in for an interview. They obviously knew of my experience as a loan originator, but wanted to gauge my interest in working on the wholesale side of the business. At that time, in 2007, this was a much smaller company—there were maybe a handful of people working for UWM, and the office was what used to be a small store. For my interview, I spoke with this young guy named Mat Ishbia, current president and CEO of UWM. Mat spoke about how UWM was going to be the number one wholesale lender, and at the time, I wasn’t sure if he was kidding or not. He promised me that UWM was going to be something special, so I knew I had to give it a shot. We were on the ground floor at the time–and look where we have come! I still consider us on the ground floor because the broker business is only going to continue to grow. In your opinion, what makes UWM

stand out from the competition? It is definitely our people. You can have the best systems and the best technology, but if you don’t have good people, it just doesn’t work. I do a lot of traveling, so I’m on the road talking to brokers and going to trade shows, speaking with some of our competitors. If you take a look at the team we have here at UWM, all under one roof, no other company or competitor has that kind of structure and culture in one place. Most companies have different locations and fulfillment centers throughout the country. With all of us working in this single location, we’re all on the same page, running the same play, and we all know what our goals are. We are all rowing the boat the same way, working towards a common goal, and that’s to make sure our brokers are successful. If we were to be spread out throughout the country, we would lose out on building a strong culture and would see a drop-off in our consistency, transparency and communication. How do you see the current state of the wholesale market? The wholesale market is growing. The best place for a consumer to

get a loan is through the mortgage broker channel. Brokers present borrowers with more options and multiple lenders to choose from. I think wholesale is going to play an important role for many years to come. Traditional banks aren’t specifically focused on mortgages like brokers are. When you’re working with a mortgage broker, they’re more open to providing a higher level of client service … they’re nimble. I see a lot of people in the industry going back into opening broker shops and originating. The wholesale market is going to continue to thrive. How has UWM been able to keep on top of the many regulatory changes that have taken place in recent years? We stay at the forefront of compliance and regulatory changes. We always want to do what’s right by the consumer, and stay alert so we know what kind of changes are coming. We’re proactive in terms of developing technology and processes that help our clients succeed right away, rather than sitting back and being reactionary. We do what’s best from a regulatory standpoint and from a client standpoint. We’re focused on protecting consumers, our brokers and ourselves.

onal of the Month

Regulatory changes will always be a part of this business, that’s just a fact. It comes down to how you handle it. Are you going to be negative or be positive and find ways to adapt your business so you can excel. We look at regulatory changes as opportunities to gain a competitive advantage, and do everything internally from a technology standpoint. All of our technology is built in-house, so we are able to make appropriate changes more easily. It also helps us maintain great synergy among teams. For example, there is transparency between IT, sales, and our compliance teams when developing different tools and products. When you make decisions or changes, it’s important to collaborate with all teams involved that will be affected. In your opinion, what can the industry do to encourage young people to pursue careers in mortgage banking? I don’t think many people have their minds made up in high school or college that they want to be a mortgage broker or loan originator. The field can be very rewarding, but you’ve got to have a strong work ethic and the discipline to put in the

time to needed to become successful. In order to attract Millennials, the mortgage industry needs to stay at the forefront of technology. When your technology works for you, you’re going to attract the entrepreneurial-minded young professionals because they are interested in innovation and being in control of their business. For younger people who aspire to run their own book of business as a mortgage broker or loan originator, the mortgage industry allows them to be in control of their own success, but it’s also important that they’re go-getters and have a strong work ethic and positive attitude. Looking back on your work in the industry, what do you see as your greatest challenges and your greatest accomplishments? My greatest challenge came in the early stages of my career at UWM when I was starting out as an account executive and our clients had never heard of UWM. That challenge was maintaining my mental toughness and drive when we were starting to grow our business. It can be easy to just give up in those situations, but I made a

commitment to UWM and myself to stay competitive and persistent. Being in the weeds and constantly working at my craft gave me the confidence I needed to be effective on the phones and help bring UWM to where it is now. That strong mindset is a major reason why I was able to take my business to the next level back then and continues to do the same today. Being a part of our team here at UWM has been my greatest accomplishment. Our team is on the same page and rowing the boat in the same direction—everybody is in tune with the exact same vision and goals. I value the process it took to become the number one wholesale lender in the nation, as well as the process it takes to maintain that spot. To me, the true accomplishment is when our team of 1,600-plus shares the same vision, passion and excitement, and provides the same type of value and service. What do you see as the near-term

future for the mortgage banking industry? Technology is going to play a major role in the near future. You’re going to see lenders that don’t have the right technology or infrastructure suffer a little bit, while the lenders that invest in their IT teams are going to distinguish themselves and grow their business. We’re also seeing a good number of loan originators leaving banks and retail shops to open up their own mortgage broker shops, so the entrepreneurial spirit in the mortgage industry is on the rise. More loan originators are going into broker shops as well because they have more options. Outside of work, how do you spend your leisure time? When I’m not at work, I am with my family. It’s great to have that work/life balance. I have three boys who are heavily involved in sports. So when I am not in the office, you can typically find me at the football, soccer or baseball field with my wife and kids.

Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at PhilH@NMPMediaCorp.com.

The NAPMW Report

BY KELLY HENDRICKS

NAPMW’s Focus on Women Paying Off as Association Shows Growth Surge his is an interesting time for the mortgage industry, and even more interesting for the growing number of women who are integral to the success of companies operating across the spectrum of mortgage services. That’s why the leadership of the National Association of Professional Mortgage Women (NAPMW) has been working diligently on making NAPMW a haven, a school and a network promoting women in the workforce. There are, after all, numerous other trade associations that serve the mortgage world. The Mortgage Bankers Association (MBA), as well as NAMB–The Association of Mortgage Professionals, effectively cover the mortgage banking and brokerage functions. Heck, there’s even an association for mortgage processors, and now not just one, but two, associations for residential mortgage compliance officers. But for all that, there’s only one organization that focuses exclusively on the needs of women in this profession … and that’s NAPMW. Over the past year, NAPMW has been re-doubling its efforts to focus on initiatives important to women in the mortgage world, and we’re delighted to report that those efforts are paying off. For example: l Membership: Our membership levels nationally are at the highest they’ve been in the last 36 months. l We’ve revitalized our national conference: This past spring, the NAMPW Annual boasted a wide array of educational sessions, and an amazing lineup of inspiring women. It also scored nearly twice the attendance of the prior year’s conference, and was a major

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contributor to NAPMW’s income. l We’ve stabilized NAPMW’s financial base: Coming out of the Great Recession, many mortgage associations found a different financial future facing them. NAPMW was no different. But we’ve put in place new initiatives and professional management that has allowed us to report strong net income this year, adding to our fiscal foundation. A grand plan We’ve worked hard to make our association more inclusive, and more able to take advantage of connective technologies. Although we’re proud of the many NAPMW’s local associations scattered across the country, we know our future must be one that brings together all women–and all men who support them–in the mortgage industry. That’s why we’ve updated our bylaws to allow all members a vote on all matters of the association, whether they are individual members of the national association or connected to the organization through one of our local groups. We’ve also changed our rules to allow each member to vote electronically, rather than have to be in person at our national conference. That change also adds flexibility for the association to be responsive faster to the needs of our members. But we also know we cannot stray from our traditional custom, where education and learning are prominent. That’s why we’ve entered into new partnerships with organizations such as Mortgage Educators and Compliance, to offer continuing education and workshops all across the country to our members. And we’ve worked closely with the highly-

respected law firm Offit Kurman to create a members-only complimentary quarterly compliance Webinar series. NAPMW: Where women come to be their best Now in our 53rd year, NAPMW has always been centered on providing a place where women’s voices are heard. Because of that, we’ve been fortunate that our membership is loyal and discerning. As women make inroads into their careers, they look to NAPMW as a source of support, and they contribute back to other members through networking and mentoring. Which, of course, begs the question: What does an NAPMW member look like? In short, she looks like success. Here are just a few attributes, according to our research: NAPMW members are key decision drivers Nearly 58 percent of NAPMW members are drivers of buying decisions at their organizations, either as the sole decision-maker, influencing the buying decision, or as someone who is critical in recommending buying decisions. NAPMW members are heavily involved in producing bottom line results Just about 63 percent of NAPMW members are in senior management or have sales/production responsibility at their company. NAPMW members have extensive career backgrounds, and many are leaders at the

nation’s largest mortgage providers NAPMW members are accomplished, seasoned executives at influential companies, and have successful, long-term career tracks. Most NAPMW members (61 percent) work at companies with 100 or more employees, with 55 percent in companies of more than 150 employees. Nearly 70 percent of NAPMW members have spent 16 years or more in the mortgage profession. About 53 percent are between 35- and 54-years-old–a prime career demographic—with another 30 percent between 55and 65-years-old. NAPMW members are often well-paid for their skills As would be expected from a membership that is often among the most highly-sought after employees, NAPMW members overwhelmingly report significant income. Nearly 69 percent of NAPMW members report income in excess of $100,000 a year, with 22 percent confirming income in excess of $200,000 annually. For all of that, of course, an association is really little more than the collective talents of its members, the personification of their interests and skills. That’s why continuing to grow our membership remains our number one mission. And that’s why all professional mortgage women should be members of NAPMW. We’re not just one of the guys–we have unique needs and issues that face us, and we need a unique organization that works on our behalf. So please, visit NAPMW.org today and join us.

Kelly Hendricks is president of the National Association of Professional Mortgage Women (NAPMW) and is vice president at St. Louis-based Delmar Financial. She may be reached by phone at (314) 398-6840 or e-mail President@NAPMW.org.

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Measuring Your M

Assessing your goals at t

Mid-Year Progress

t the halfway mark e are just past the mid-year point and its time, if you haven’t done so already, to check in to see how you are doing. Goals are very important and most originators set them at the beginning of the year, but measurement of those goals is equally as important. All too often, loan originators and account executives don’t check

l The conversion of those leads to closed loans l The rate of re-approvals to closed loans l The ratio of originated loans closed to measure pull-through The more you understand where your business comes from, and as importantly which source(s) of business are the most profitable for you, the more you can make the right adjustments to how you market and promote your business. The second part of your midyear evaluation is taking a look in the mirror to see exactly what you might need to improve upon. Measuring your progress related to production and income are only part of where you need to look. Focusing on your sales, marketing or even time management skills are just as important. For example … if you struggle with controlling your time, then your ability to increase your production is immediately

compromised. If your business is run in a chaotic manner, your brain will immediately link up “more business means more chaos.” That association on a subconscious level will ultimately lead to self-sabotage where you will take one step forward and then one step back. What will make it even worse is that you will have more stress when this happens. The better your skills on influencing others to follow your lead, the less time is spent on each activity, like gathering documents, getting prospects and referral partners to say “yes.” Although any time of year is a great time to check in with your goals and skill assessment, if you have not done so, then mid-year couldn’t be a better time. You will be amazed at what you find out about yourself and your business when you do it. Some of it will be great, and likely some of it might be just what you need to make massive changes to elevate your business to a whole new level.

Ron Vaimberg is president of Ron Vaimberg International and executive director of nmpU. Ron is a veteran of the real estate and mortgage industry since 1983. As a leading speaker, trainer and strategic coach, he possesses the ability to quickly assess any individual’s business challenge and provide instant solutions that are simple to implement and provide significant growth results. Ron may be reached by phone at (866) 360-6645 or by e-mail RonV@NMPMediacorp.com.

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l The number of leads generated from each different relationships or lead source

“All too often, loan originators and account executives don’t check in on themselves in detail to see how they are doing.”

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in on themselves in detail to see how they are doing. I say this because time and again, when I am conducting an introductory coaching session with a prospective client, I will ask them about the volume, units, leads, etc. … Amazingly, even though the bulk of my clients are high producers, it is amazing how few actually know their numbers and stats. There is always a ballpark figure, but that is really not good enough. In our business, what gets measured, analyzed and focused on, gets done! It is crucial that you not just measure what is happening in your business on a daily or weekly basis, but it’s critical towards meeting objectives to measure your progress towards your goals. I often have conversations with originators and account executives about the difference between working “transactional” versus working a “business.” Transactional focus leads to more often than not working paycheck to paycheck. “Business” thinking leads towards much bigger things—from rapid and deliberate production increase, to the development and building of a team. If it has been a while since you looked at your written goals (if you don’t have clearly written and defined goals, then that is a different conversation that is needed) and see exactly where you are in your business, now is the time. I always recommend, when evaluating performance, that you should not only know your units, volume and lead volume, but there are so many more aspects that are important to measure. Some of the additional metrics which are important to measure are:

By Ron Vaimberg

MBA’s Mortgage Action Alliance

heard on the street

A Message From MAA Chairman Fowler Williams he Mortgage Action Alliance (MAA) is a voluntary, nonpartisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association (MBA).

Congress is currently in recess, as members are in their districts meeting with constituents. As you may have seen in the past few weeks, MBA and MAA had a presence at both the Republican and Democratic National Conventions. This included a number of events and, in particular, two separate real estate media events at each Convention. These panels were hosted by The Hill newspaper and sponsored by a broad coalition of real estate-focused trade associations. MBA Vice Chairman Rodrigo López moderated a panel at the Republican Convention event and MBA President and CEO David Stevens moderated a parallel panel at the Democratic Convention. With election season now fully underway, we are excited to launch a new feature on MBA’s Advocacy Action Center, the Elections Page. On the Elections Page, you are able to easily look up the federal and state candidates running for office in your area, information about the election, and even register to vote. Go to Action.MBA.org to visit the Elections Page and try it out for yourself! You can also connect with MAA on social media. Please check out MAA’s Facebook page. Check-in with MAA often to stay up-to-date on the happenings in Washington, D.C. and your state capital. We will post the latest political news as well as MAA “Calls to Action.” You can also join MAA’s group on LinkedIn to connect with fellow advocates and expand your network! The Mortgage Action Alliance recently sent out a letter asking members about any personal relationships they may have with their elected officials. These relationships can be incredibly valuable to our advocacy efforts on behalf of the industry. Please consider joining MAA and helping us leverage your personal relationships to advocate on behalf of our industry. The industry’s ability to navigate and manage these policy challenges will be critical to our efforts to serve consumers. Visit MAA’s Web site to learn more. Getting involved with MAA allows industry professionals to play an active role in how laws and regulations that affect the industry and consumers are created and carried out by lobbying and building relationships with policymakers. It only takes a moment to get started, and you do not have to be a member of MBA to enroll. The larger the group, the louder the voice! If you would like to run an MAA campaign, please contact Peter Shapiro at (202) 557-2933 or e-mail PShapiro@MBA.org to receive an Enrollment Campaign Kit and learn more about how you can engage your colleagues and employees in MBA’s advocacy programs. Real estate finance industry professionals who wish to join or learn more about MAA can do so at Action.MBA.org. If you have any questions regarding MBA’s advocacy programs, please contact MBA’s Director of Political Affairs Annie Gawkowski by phone at (202) 5572816 or e-mail AGawkowski@MBA.org. Fowler Williams is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. He is also president of Atlanta, Ga.-based Crescent Mortgage. He may be reached by phone at (800) 851-0263 or e-mail FWilliams@CrescentMortgage.net.

experience in retail, correspondent, wholesale and warehousing channels with major lenders, including Bank of America. William R. Kelly Jr. has joined Mortgage Network Inc. as a mortgage loan officer in the company’s Danvers, Mass. branch office, where he will be responsible for serving homebuyers and homeowners throughout Massachusetts and New Hampshire. Dart Appraisal has announced the promotion of Michael Dresden to president from executive vice president. The Mortgage Bankers Association (MBA) has announced the promotion of David Upbin to the position of associate vice president of Education Operations and Programming, and MBA Strategy. Upbin, who joined the MBA in 2013, will be responsible for the financial management, operations, delivery, and programming of MBA Education’s suite of training products and events. GSF Mortgage has added Pino Ude as mortgage loan originator located in Gaithersburg, Md., joining the company with 21 years of experience in the mortgage industry. GSF Mortgage has also named Debbie Beier as chief operating officer. Previously GSF’s general manager, Beier will focus on making each department more efficient and break down the barriers between operations and sales. She will also work on increasing the service level standard at GSF Mortgage. Julie Manson has been appointed to the position of executive vice president of Operations for Plaza Home Mortgage where she will provide leadership and support in the areas of lending operations, credit/corporate underwriting, and postclosing operations, in addition to her current risk management responsibilities. ReverseVision has hired industry educator Dan Hultquist, CRMP as director of learning and development. In this new role, Hultquist will apply his experience in

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originating loans and working with retirement advisors to help ReverseVision bring a range of products, financial tools and educational techniques to the industry, ultimately driving volume growth. ISGN Corporation has announced the hiring of two mortgage industry experts, Destinee Pratt as senior vice president of Servicing Technologies and Chris Anderson as executive vice president of Sales. Stonegate Mortgage Corporation has announced that Bill Dyson has been named SVP of Distributed Retail where he will be responsible for leading Stonegate’s Distributed Retail Channel and report directly to Steve Landes, EVP, director of National Sales. Reverse Mortgage Funding LLC (RMF) has announced the appointment of seasoned retirement and financial planning expert Tom Dickson as national leader of its Financial Advisor Channel. OpenClose has announced the hiring of Sonja D’Anneo as a lead integration specialist, where she will be involved with helping integrate various technologies into OpenClose’s LenderAssist LOS platform as well as other solutions the company offers. LRES has announced that Zack Chauncy has been appointed as its new vice president of regional sales, responsible for increasing LRES’ sales, identifying prospective clients and potential opportunities to generate new business and cultivating client relationships.

Your turn National Mortgage Professional Magazine invites its readers to submit any information, events, passages, promotions, personal or professional occurrences that seem appropriate and/or other pertinent data to the attention of: Heard on the Street/Mortgage Professionals to Watch column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via email are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

a sweet reit life

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$2.42 per unit for historic accounting purposes in 1978, sold less than a year later at over $70 a unit—an astounding 29-times historic cost under accounting norms. I mounted an editorial campaign for transparency against such gross inequities, which put me on the outs with many subscribers. I debated this hot topic with the former president of the REIT trade association at the group’s 1979 annual meeting, and worked with other analysts to get accountants to change their rules and place true values on properties in their financial statements. This formal change has never been adopted in the U.S. and investors now rely upon an informal system in which brokerage-firms provide their estimates of company net asset value (NAV). But outside the U.S., the International Financial Reporting Standards (IFRS) — which was primarily developed by accountants within the former British Empire (U.K., Australia, Canada)—requires companies to place current, or market, value on their properties in their financial statements. IFRS has been accepted by many foreign nations and, hopefully, the U.S. will adopt IFRS sometime down the line. I also believe that I brought a new level of transparency and honesty to the industry, especially when discussing tender or unpleasant events such as property problems, activist investors, and shareholder returns. For many years we published very detailed analyses of fee arrangements for externallymanaged REITs that helped, I believe, ultimately shift REITs from external to internal management, the industry norm today. My 1976 testimony to a Senate committee also forwarded this cause. What advice would you give to today’s young people about working in the REIT industry? Kenneth D. Campbell: Opportunity always comes dressed in overalls or cap-and-gown and carrying a book bag, so anyone wanting a career in real estate or the REIT industry should expect to learn and work hard. Here are some of my thoughts on this question: l Acquire a broad view of real estate and the REIT industry. The National Association of Real estate Investment Trusts (NAREIT) has an excellent Web site loaded with helpful articles and news.

l Pursue an advanced education early in life before children arrive. I broke this rule and didn’t pursue an MBA until my children were in high school. My book is my way of telling my children what I was doing during their growing-up years. l Learn the stock market. I list several books that helped me become comfortable in the stock market. Your reading list will vary. Learn math and finance and read about behavioral finance and the

difference between stock market sentiment and reality. l Speak convincingly in public. I debated in high school and the experience has been enormously helpful over the years. l Give back. My partner-wife and I try to be meaningfully involved in a small list of non-profit organizations. All royalties from Watch That Rat Hole will go to

BCS-YES Angel Scholarship Fund to aid at-risk youth in the Philadelphia area. l Love what you do. If you don’t, change jobs. l Dare to take reasonable risks that others shun. Timidity seldom wins the prize. Not every prospecting trip will pan out, but you must learn to be comfortable moving outside the mainstream and your own caution.

Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at PhilH@NMPMediaCorp.com.

Operation VA SITREP “Your VA Situation Report”

Refinancing and Funding Fees What you need to know! BY RICHARD M. BETTENCOURT JR., CRMS, CMHS appy summer everyone! I hope you guys are absolutely crushing it with your production! I know it’s not what many wanted to see, but from a mortgage perspective, I have to tip my hats to our brothers and sisters across the pond for Brexit! That little move has dropped our rates to all-time lows! You should all be actively and aggressively seeing out servicemembers and asking them if it’s okay to give them a free mortgage analysis to see if you can improve their current situation. I think you’ll be shocked at how many veterans and active duty personnel don’t have a VA home loan. With rates in the low three percent range, depending on their loan size, and their goals and objectives, you just might be able to help a veteran take some cash out, reduce their rate, reduce their term, and potentially save them money every month! I recently helped a veteran who was referred to me by some of my friends in the military community. He currently has an FHA mortgage (don’t get me started on that issue … I’ll vent on that in a future article!) and wanted to reduce his rate and ask if he could remove PMI on this two-family. Imagine that … he had to ask if he could get rid of PMI! I kindly said, “Sir, there is no PMI on a VA home loan, so, it’ll be my pleasure to get rid of that for you!” In the end, we refinanced his home, reduced his rate to 3.250 percent, reduced his term to 25 years, took about $15,000 cash out, and still saved him a considerable amount of money!

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He’d only been in the house about 30 months, so the amount of money and interest he’s saving over the course of his term is incredible! Trust me friends … there are thousands and thousands of qualified military personnel not using their benefit and they own a home! So, what’s the point of this month’s little article? The point is, VA funding fees could cost you or your lenders a lot of money if you don’t disclose them properly in a VA cash-out refinance situation. There is no reduction in the VA funding fee on a VA cash-out refinance regardless of the amount of equity in a property. Remember, on a VA purchase with 10 percent down, the funding fee is reduced from 2.150 percent (regular service and first-time use) to 1.250 percent. So, it’s easy to make the mistake and assume that a refinance with greater than 10 percent equity means the funding fee should be reduced accordingly. I mean, it’s allowed on purchases, right? WRONG! Every VA cash-out refinance will have one of the following three scenarios. l First, if the veteran is applying or a cash-out refinance and has never used their VA benefit, then, regardless of equity, the funding fee will either be 2.150 percent (regular military service) or 2.400 percent for those who served in the Reserves or National Guard! l Second, if the veteran has used their VA benefit in the past, and they are refinance an existing VA home loan or converting from another loan program to their VA benefit, the funding fee will be

either 3.300 percent (regular military service) or 3.300 percent. l Third, if the veteran has a 10 percent or greater service connected disability and is identified as “Exempt” on their Certificate of Eligibility, then there will be no VA funding fee. So, what happens if you take an application, issue the Loan Estimate, and realize that the funding fee is incorrect? Let’s say you disclosed 1.250 percent when in fact, it really should have been 2.150 percent. Well, unfortunately, the lender will be stuck paying that difference! RESPA and the Consumer Financial Protection Bureau (CFPB) have stated that an incorrectly disclosed VA Funding Fee is not a valid change of circumstance, and subsequently falls under the “Services You Can’t Shop” category which is a zero tolerance category. Imagine improperly disclosing a 1.250 percent funding fee on a $523,000 VA home loan that should have had a 2.15 percent funding fee? You just cost your lender nearly $5,000! Chances are your boss and the company will be pretty upset! The best way to eliminate these types of mistakes is to quickly have your processing/operations team obtain the COE prior to taking a RESPA Compliant Application. You can also have the veteran sign up for an account on Ebenefits.va.gov and

order one on their own! I’ve done this many times, and it really makes the entire process even easier! If you’re finding, like I am, that your VA cash out business is growing, then I highly recommend you check with your compliance department on the appropriate way to avoid these costly mistakes and ask about the ramifications if a mistake is made! Don’t worry if you appropriately and accurately issue an LE on a $500,000 cash-out refinance, but the veteran subsequently decides to increase or decrease their loan amount. This is considered a “Valid Change of Circumstances” and all you need to do is follow your company’s protocol for Change of Circumstances! This issue of improperly disclosing funding fees, seems to be happening with greater frequency, so much so that the VA just issued a Circular 26-16-21 to help remind the industry what are the correct numbers (Benefits.VA.gov/HomeLoans/Resour ces_Circulars.asp). Hopefully you’re reading this article while taking in all of the amazing information being put out at our 2016 NAMB National Convention in sunny Las Vegas! It’s going to be a great show and the information and speakers we have this year are some of our best! Thanks again for taking the time to read my article, and as always, if you haven’t thanked a veteran today, please take time to do so! They’ve done more for us than we could ever repay!

Richard M. Bettencourt Jr., CRMS, CMHS of Danvers, Mass.-based Mortgage Network is secretary of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (978) 304-0818 or e-mail RBettencourt@MortgageNetwork.com.

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How Wal-Mart Can Help You Keep Your Commission BY BUBBA MILLS

2. Share everything: Share all (and I mean everything), you’ll be doing to earn your commission. A lot of borrowers simply don’t understand what mortgage lenders do. Educate them. 3. Illustrate your understanding of the market: If you say you’re worth the commission, prove it by sharing the intricate details of the current lending market with local economic insights. 4. Let others speak for you: For some people, you can talk all day long about the numbers and data and still not get the sale. Why? They want what in marketing is called “social proof.” In a word, that means testimonials. Always have them on hand. I’ll close with this advice: Sell yourself, just don’t sell yourself cheap, because when you do, you stay cheap. Bubba Mills is CEO of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 957-8353 or visit CorcoranCoaching.com.

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1. Do the math: Prove to borrowers you are indeed worth every penny by showing your past performance.

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“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”—Douglas Adams Let’s start with a question: How long do you think Wal-Mart would stay in business if it began raising its prices? What do you think? My guess is it would join the dinosaurs quicker than the Edsel, New Coke and all the other colossal blunders of business. Why? From the day Wal-Mart began, it was about price and it’s remained about price every day since. There’s nothing wrong with that. The company has cemented its place in the Hall of Fame of business based solely on that strategy. But here’s what all mortgage lenders need to remember: Wal-Mart can NEVER raise its prices. It will forever be in the business of cutting costs at every turn it ever takes from now to eternity. So what does this have to do with you? Well, if you like your commissions on the higher side instead of the lower side, it has everything to do with you and your future in this industry. How do you deal with a borrower who tells you they want you to lower your commission? The first thing you can do is do exactly as you were asked–you can lower your commission. You can become the Wal-Mart or K-Mart of mortgage lending. But just know this: You just jumped aboard the cost-cutting train and guess what? There’s not a ticket off that train. Happy travels through the land of offering limited services to your future clients. Now, if you are more interested in not being a limited service provider, stick with me. Welcome aboard the train for professionals–where you distinguish yourself with your competence and unparalleled service. This is where, when a borrower asks you to lower your commission, you’re able to say, “Sorry, I’m not a limited-service provider. I give my clients 100 percent of myself because I believe they deserve it, and over the years, I’ve learned I’m worth every penny.” Then back up your position with these tips:

outstanding

n a t i o n a l

m o r t g a g e

p r o f e s s i o n a l ’ s

o u t s t a n d i n g

p l a c e s

t o

w o r k

places to work

Assurance Financial

REMN Wholesale

255-239-7948 www.lendtheway.com

732-738-7100 www.remnwholesale.com

Assurance Financial has built a great reputation for closing loans on time. Our operations team is committed to helping our branch managers and loan officers succeed. We have immediate openings throughout the South. Join us, and experience what a huge difference our support can make to your success!

Although REMN Wholesale is part of a large corporation, it feels like a “Mom and Pop”-style company. We encourage our team members to grow and we train and promote each individual to their full potential. As a national company, REMN provides many opportunities for employment from coast to coast.

PRMG

United Wholesale Mortgage

1-866-PRMG-YES (806-776-4937) www.PRMG.net

800-981-8898 www.uwm.com/careers

Built by originators for originators, PRMG was born from a vision of creating a company with a unique culture focused on the successes of the producer. We understand what it takes to be a successful originator and cultivate new business every day.

Voted the #1 place to work in Metro Detroit, UWM is looking for A players to join our talented team. Our business is driven by our culture, and our people are our greatest asset. If you’re looking for the opportunity of a lifetime, apply to UWM today!

Attention Recruiters, Business Development Managers and HR Professionals national mortgage professional’s

outstanding places to work

We are pleased to announce a new package that will give your firm the recruiting tools to instantly shift your recruiting efforts into high gear using a multimedia, market-saturating approach. We will utilize the most successful methods that our clients have been using to find, identify and place top talents for your company. We have designed these packages with the concept of making it less expensive to give you the ability to reach more people. NATIONAL MORTGAGE PROFESSIONAL MAGAZINE 1220 Wantagh Avenue • Wantagh, New York 11793-2202 516-409-5555 • Fax: 516-409-4600 • E-mail: advertise@NMPMediaCorp.com

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

calendar of events AUGUST 2016 Wednesday-Saturday, August 17-20 Florida Association of Mortgage Professionals 2016 Annual Convention Omni Orlando Resort at ChampionsGate 1500 Masters Boulevard ChampionsGate, Fla. For more information, call (850) 942-6411 or visit MyFAMP.org. Thursday-Friday, August 18-19 Louisiana Mortgage Lenders Association 2016 Annual Education Conference New Orleans Riverside Hilton 2 Poydras Street New Orleans, La. For information, call (225) 590-5722 or visit LMLA.com. SEPTEMBER 2016 Monday-Tuesday, September 12-13 Mortgage Professionals of Iowa 2016 Convention and Education Event Echo Valley Country Club 3150 Columbine Drive Norwalk, Iowa For more information, call (800) 462-0077 or visit IMPOI.WildApricot.org.

Wednesday, September 14 HAMB 25th Annual State Conference “Get TRID Fit With HAMB” Japanese Culture Center of Hawaii 2454 South Beretania Street (Manoa Grand Ballroom) Honolulu, Hawaii For more information or visit HAMB.org.

Monday-Tuesday, September 19-20 NYAMB’s 28th Annual Convention & Trade Show “New York: We Live It, We Breathe It, We Own It!” The Huntington Hilton 598 Broad Hollow Road Huntington, N.Y. For more information, call (914) 315-6644 or visit NYAMB.org. Saturday-Monday, September 24-26 NAMB National 2016 The Luxor Resort & Hotel 3900 South Las Vegas Boulevard Las Vegas For more information, call (860) 719-1991 or visit NAMBNational.com. Wednesday-Friday, September 28-30 MBA’s Risk Management, QA & Fraud Prevention Forum 2016 JW Marriott L.A. LIVE 900 W Olympic Boulevard Los Angeles, Calif. For more information, call (800) 793-6222 or visit MBA.org. Thursday, September 29 8th Annual NYC Real Estate Expo The Hilton Hotel 1335 Avenue of the Americas New York, N.Y. For more information, call (646) 210-2545 or visit NYCNetworkGroup.com.

Tuesday-Friday, October 4-7 Mortgage Bankers Association of the Carolinas 61st Annual Convention “Right Place, Right Time” Hilton Head Marriott Resort & Spa 1 Hotel Circle Hilton Head Island, S.C. For more information, call (843) 303-5705. Friday-Saturday, October 14-15 The Arizona Mortgage Expo 2016 Wild Horse Pass Casino & Resort 5040 Wild Horse Pass Boulevard Chandler, Ariz. For more information, call (860) 719-1991 or e-mail Info@AgilityResourcesGroup.com. Sunday-Wednesday, October 23-26 Mortgage Bankers Association 2016 Annual Convention Hynes Convention Center 900 Boylston Street Boston, Mass. For more information, call (800) 793-6222 or visit MBA.org. Monday-Thursday, October 24-27 8th Annual Conference of Mortgage Brokers and Professionals Harrah’s Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, call (732) 596-1619 or visit MBANJ.com. NOVEMBER 2016 Thursday, November 10 MBA’s Whole Loan Trading Workshop 2016 Hilton Phoenix Airport Hotel 2435 South 47th Street Phoenix, Ariz. For more information, call (800) 793-6222 or visit MBA.org.

Monday-Wednesday, November 14-16 National Reverse Mortgage Lenders Association 2016 Annual Meeting & Expo The Swissotel Chicago 323 East Upper Wacker Drive Chicago For more information, call (202) 939-1784 or visit NRMLAOnline.org. Tuesday-Thursday, November 15-17 MBA’s Accounting and Financial Management Conference 2016 Manchester Grand Hyatt 1 Marketplace San Diego For more information, call (800) 793-6222 or visit MBA.org. Wednesday-Thursday, November 16-17 Mortgage Star Conference 2016 Canyons Resort 4000 Canyons Resort Drive Park City, Utah For more information, call (860) 922-3441 or visit Mortgage-Star.net. Wednesday-Thursday, November 16-17 MBA’s Summit on Diversity and Inclusion 2016 Capital Hilton 1001 16th Street NW Washington, D.C. For more information, call (800) 793-6222 or visit MBA.org. Friday, November 18 Utah Mortgage Expo 2016 Zermatt Resort & Spa 784 Resort Drive Midway, Utah For more information, call (860) 719-1991 or visit UAMPExpo.com. MAY 2017 Tuesday-Thursday, May 2-4 2017 Great River MBA Conference The Peabody 149 Union Avenue Memphis, Tenn. For more information, call (901) 321-6702 or visit GreatRiverMBA.com.

To submit your entry for inclusion in the National Mortgage Professional Calendar of Events, please e-mail the details of your event, along with contact information, to newsroom@nmpmediacorp.com. *Looking for additional exposure at key industry events? Call 516.409.5555, ext. 4 to discover how to maximize your event coverage.

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Wednesday September 14 Texas Mortgage Roundup 2016 DoubleTree by Hilton Dallas Near the Galleria 4099 Valley View Lane Dallas, Texas For more information, call (860) 922-3441 visit TXMortgageRoundup.com.

Sunday-Tuesday, September 18-20 MBA’s Regulatory Compliance Conference 2016 Grand Hyatt Washington 1000 H Street Washington, D.C. For more information, call (800) 793-6222 or visit MBA.org.

OCTOBER 2016 Tuesday-Friday, October 4-7 American Land Title Association 110th Annual Convention Fairmont Scottsdale Princess 7575 East Princess Drive Scottsdale, Ariz. For more information, call (202) 296-3671 or visit ALTA.org.

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Wednesday-Friday, September 14-16 29th Annual New England Mortgage Banking Conference (NEMBC) The Hyatt Regency 1 Goat Island Newport, R.I. For more information, call (617) 570-9114 or visit MassMBA.com.

Friday, September 16 OriginatorConnect 2016 Mohegan Sun 1 Mohegan Sun Boulevard Uncasville, Conn. For more information, call (860) 922-3441 or visit OriginatorConnect.com.

APPRAISAL MANAGEMENT COMPANY

BONDS & LICENSING

The Bond Exchange www.bondedwithnamb.org (501) 224-8895 LOWEST-COST STATE MORTGAGE LICENSE BONDS Support NAMB in supporting you! Online surety bond applications, instant underwriting approval, and credit card payments administered through The Bond Exchange NAMB's exclusive partner provider for state license surety bonds. The Bond Exchange is a national surety agency specializing in servicing mortgage license bonds for thousands of mortgage professionals across the country. Low prices and fantastic service. You really can have them both at the same time!

PCA APPRAISAL MANAGEMENT

CAREER OPPORTUNIES

COMPLIANCE CONSULTANTS

LENDERS COMPLIANCE GROUP 167 West Hudson Street - Suite 200 Long Beach | NY | 11561 | (516) 442-3456 www.LendersComplianceGroup.com The first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance. Pioneers in outsourcing solutions for mortgage compliance. Our Compliance Team Will: Leverage your existing employees. Improve your productivity. Collaborate on projects. Make the most of your current technology. Bring innovation to your company. Be a strong cultural fit. Free you to focus on your core competencies. Give you access to world-class expertise. Lower your total operational costs.

EDUCATION

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NationalMortgageProfessional.com

APPRAISAL MANAGEMENT, INC. 925.944.4848 www.PCAAMC.com

BOOTS ACROSS AMERICA TOUR 2016-2017 Beverly@BootsAcrossAmerica.org

Appraiser owned and run since day one. We will adapt our systems to yours, not the other way around.

Certified Military Home Specialist Beverly Ray Frase "Training Boots on the Ground" Since 2009 • Trained 3,000 CMHS course grads • Trained for Depts of HUD, Treasury & more • 20+ years' experience in real estate & finance, military life

More information: carlos.duarte@pcaamc.com

AUDIT DEFENSE AND RESPONSE

MORTGAGE BROKER AND LENDER COMPLIANCE AUDIT, MLO POLICIES and UPDATES Our fees are less than the big national firms that don’t call you back. Program includes all Manuals including QC, MLO Policies and Comp Plans, AML, GLB, Social Media and Web audits, on-line training sessions, governance documents, and our audit protection plan. Available in all 50 states. We have hands-on experience with regulators and audits. No theories here; we were Bankers. If you find yourself in federal court, we can handle that as well. Contact Nelson Locke at (800) 656-4584. Or you may e-mail us at nl@lockelaw.us All inquiries will be kept strictly confidential. This is not an offer for legal services, but rather for his expert review and opinion about your particular compliance situation. All fact patterns are different so the results will vary. No guarantees are expressed or implied. Licensed by California and Federal Bar. NMLS 149450.

COMING TO YOUR CITY!

COMPLIANCE CONSULTANTS

HARD MONEY/PRIVATE LENDING

BROKERS COMPLIANCE GROUP 167 West Hudson Street – Suite 200 Long Beach | NY | 11561 members@brokerscompliancegroup.com www.BrokersComplianceGroup.com

Direct Private Money and Bridge Lender specializing in Stated Loans in CA 866-668-2663 Send Scenarios to info@CalHardMoney.com

Division of Lenders Compliance Group, BCG is the first and only mortgage risk management firm in the U.S. devoted to supporting the unique compliance needs of residential mortgage brokers. Leveling the Playing Field for Mortgage Brokers Low Cost Monthly Membership Includes: • Free Weekly Hotline • Access to Subject Matter Experts • Policies and Procedures • Webinars *Special Pricing* • Quality Control • Exam Readiness • Licensing • Legal Reviews

LENDING CRITERIA · Collateral: Stated 1st and 2nd position loans on N/O/O invest. properties (SFR, Condo, 1-4 units), Mixed-use, 5+ units, Retail, Industrial, Warehouse and Etc. · Fix & Flip program up to 70%-80% of the Purchase price on all types of properties · Loan amounts/Terms: $50,000 up to $5,000,000 and loans from 6 months to 10 years. · LTV: Purchases up to 70%-80% LTV; Refinances up to 60-65% LTV; 2nd Position up to 65% CLTV · BROKERS ALWAYS PROTECTED AND RATES STARTING AS LOW AS 8.50%

MARKETING

WHOLESALE/CORRESPONDENT LENDERS

WHOLESALE LENDERS

Contac t: info@afr wholesale.com

888.664.2101

TagQuest www.tagquest.com 888-717-8980 TagQuest is a full service marketing firm created specifically for the ever changing mortgage business. We have tested and proven campaigns for FHA -VA - HARP - CONVENTIONAL loan types. TagQuest knows what it takes to generate quality leads whether through direct mail marketing, telemarketing, internet leads, data lists, tracking systems, or any combination thereof. TagQuest will brand your company, prepare targeted marketing campaigns that generate interest in your company, and most importantly, show you how to turn sales leads into repeat customers.

AFR Wholesale ranked #1 with the most Sponsor Originated FHA 203(k) closed loans.*

CLOSE MORE LOANS WITH:

FREE PROCESSING - NO LENDER FEES ** •Conventional •USDA •Manufac tured Housing •One -Time Close Construc tion •Freddie Mac Open Access and Fannie Mae DURP •VA and FHA, FHA 203(k) and 203(h) Rehab loans •Jumbo loans up to $2,000.000 – Ask about our Stated Jumbo Lender NMLS:2826 - 9 Sylvan Way, Parsippany - NJ, 07054 - *See website for details: www.afrwholesale.com This is not an adver tisement ex tended to the consumer as defined by Sec tion 226.2 of Regulation Z. Equal Housing Lender. Equal Opportunity Employer. **No Lender fees by AFR. Third party fees may apply. AB120313

PRIVATE FINANCING

WHOLESALE LENDERS

HomeBridge Wholesale iis a national wholesale lender offeering Conventional, Government, Jumbo, Renovation We G J b and dR i Loans. L W are comm mitted to providing the highest value to our clients through competitive pricin ng, unique product offerings, superior customer service, and state-of-the-art technology.

Now Hiring Wholesale Sales Managers/Account Executives Nationwide Please send resumes to Marketing@HomeBrridge.com

WHOLESALE LENDERS

REMN Wholesale www.remnwholesale.com 866-933-6342 REMN has FHA, USDA, 203k, VA and Conventional solutions to fit the needs of your customers. But, at REMN, our most valuable product is our people. The REMN Sales and Operations Teams give you - and your loans - the time and attention that you deserve. Even better, at REMN, same-day approvals are guaranteed.* You can rely on us to get the little, yet vital, things taken care of on time. Interested in joining our Wholesale Division? Send your resume to aerecruiting@remn.com

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PUBLICATIONS

NationalMortgageProfessional.com

5 Park Plaza, 10th Floor Irvine, CA 92614 www..HomeBridgeWholesale.com m

AUGUST 2016 n National Mortgage Professional Magazine n NationalMortgageProfessional.com

www.BrokersComplianceGroup.com

Looking for f more? Expand your business busineess with more non-prime non prime mortgagee oppor opportunities.

→ Visit www.angeloakms.com or call 855-539-4 4910 to learn more about Angel Oak Mortgage Solutions’ innovative products. cts.

© Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 3060 Peachtree Road NW, Suite 500B, Atlanta, GA 30305. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-to-business communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Employer and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, veteran status or other classification protected by law. 4-14-16 MBC