NMP National Mortgage Professional August 2021

AUGUST 2021

Volume 13, Issue 8

ESCROW FRAUD

SUMMER BREEZE

RATCHETING UP

RENTERS

DOWN

With low rates, high volume, originators are beating the heat SEEING BEYOND THE W2

How one broker made his best deal

ON DOWN PAYMENTS

INSIDE

ORIGINATOR CONNECT CONFERENCE GUIDE PAGE 26

BACK COVER

PARTNER WITH THE LEADER IN NON-QM MORTGAGE LENDING MORE EXPERTISE | MORE SERVICE | MORE TECHNOLOGY

Visit AngelOakMS.com | 877.926.3073 ©Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. 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-tobusiness communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. MS_A252_1220

AUGUST 2021

FRONT COVER

Volume 13, Issue 8

ESCROW FRAUD

SUMMER BREEZE

RATCHETING UP

RENTERS

DOWN

With low rates, high volume, originators are beating the heat SEEING BEYOND THE W2

How one broker made his best deal

ON DOWN PAYMENTS

INSIDE

ORIGINATOR CONNECT CONFERENCE GUIDE PAGE 26

2

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

AUGUST 2021

Volume 13 Number 8

CONTENTS

nationalmortgageprofessional.com

18 My First Million: A Buffet Of Advice Four top tips from the Sage of Omaha.

6 What To Do When It All Goes Sour Have a plan ready for what happens when you fire a loan originator.

20 In Your Face As mortgage conferences return, how to plan your approach to dealing with so many folks face-to-face.

8 Face It When your company grows and evolves, has your brand kept pace? What kind of face are you putting out to the public?

22 Heard By NMP Quotes from industry leaders on the issues affecting mortgage lending and home buying.

10 Fraudsters Feel En-Titled Scam artists are increasingly targeting title escrow accounts of borrowers, and officials are worried about how complex these frauds are becoming.

13 People On The Move See who the movers and shakers are in the mortgage industry.

15 Build-A-Broker: Marveling Over BrokerVision Does your brokerage have a clear idea of culture, purpose and passion? How to make sure your vision and your reality are in sync.

>

26 SPECIAL FEATURE: ORIGINATOR CONNECT AGENDA The largest gathering of mortgage originators in the nation returns triumphantly to Las Vegas. Here’s your inside look at what’s happening when.

38 DataBank 40 Non QM Showcase

COVER STORY PAGE 18

ORIGINATORS ARE TAKING IT COOL

Rates are down, volume is up, regulations are easing.

This is turning out to be one of the mortgage industry’s best summers yet.

41 OriginatorTech Directory 45 INFOGRAPHIC Ignore social media marketing for new borrowers at your own peril.

Originator Connect Agenda PAGE 26

>

4 A Viral Load It’s time we take more dramatic action to spur vaccine shots.

46 Wholesale Directory 47 My Best Deal An Arizona broker found out that extending a helping hand made the whole job worthwhile.

48 EXTREMES DOING EXTREMELY WELL Home sales to the very wealthy and to the lowest incomes are doing great.

But there’s a struggle happening in the middle class.

51 SPIRALING COSTS First-time home borrowers are finding costs escalating out of control as they try to save for their first down payment.

54 Facebook Thoughts: AKA, ‘A Love Of Language”

nationalmortgageprofessional.com

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

3

AUGUST 2021

AUGUST 2021

Volume 13, Issue 8

ESCROW FRAUD

SUMMER BREEZE

RATCHETING UP

RENTERS

DOWN

With low rates, high volume, originators are beating the heat SEEING BEYOND THE W2

How one broker made his best deal

ON DOWN PAYMENTS

INSIDE

ORIGINATOR CONNECT CONFERENCE GUIDE PAGE 26

Volume 13, Number 8

LETTER FROM THE PUBLISHER

A Shot Of Encouragement

A

s I write this, mask mandates are suddenly popping up everywhere again, even for the vaccinated.

HUD has just issued a declaration extending the eviction moratorium through September.

And virus cases have become a pandemic of the unvaccinated, which is also becoming a stranglehold on the freedoms of the vaccinated.

Meanwhile, the mortgage market continues to speed along in overdrive.

We cheer that part, of course. But if our nation continues to be pressured by the economic vise grip of Covid 19, we can’t help but wonder how long we can keep this all up.

Masks don’t make for fun vacations, or even pleasant trips to the grocery store. But hospitals piling up with unvaccinated bodies don’t leave room for a lot of argument that something has to be done to dramatically encourage people to get the shot.

What seems clear is that the vaccinated have been largely protected from the virus, but the Delta variant is altering the rules when it comes to whether they can spread the disease (data shows that doesn’t happen with other variants).

So the unvaccinated maskless folks can spread the disease via the vaccinated now. That makes this a much more dangerous situation. And if it allows further variants which might moot the vaccines we have, it will be a crushing blow to our nation, our health and our economy.

STAFF CEO, PUBLISHER & EDITOR Vincent M. Valvo ASSOCIATE PUBLISHER Beverly Bolnick SENIOR CONTRIBUTING EDITOR Keith Griffin CONTRIBUTING WRITERS Lew Sichelman, Erica LaCentra, Harvey Mackay, Pam Marron, Nick Roberson, Mary Kay Scully, James Potter Charlet STAFF WRITER Katie Jensen GRAPHIC DESIGN MANAGER Stacy Murray INTERACTIVE DESIGN DIRECTOR Alison Valvo USER EXPERIENCE DESIGNER Billy Valvo ONLINE CONTENT DIRECTOR Navindra Persaud MARKETING & EVENTS ASSOCIATE Melissa Pianin HEAD OF ENGAGEMENT AND OUTREACH Andrew Berman FOUNDING PUBLISHER Joel Berman

FREEDOMS We can honor people’s freedoms while still protecting the masses. Freedom is not absolute, and it often comes with a price. While folks should have the freedom to choose what goes into their bodies, including vaccines, that doesn’t mean that choice isn’t without consequence. What if the rules were that only vaccinated people could board airplanes, or take an interstate train or bus? Such a rule wouldn’t take away a person’s choice over vaccination, it would just lay out the consequences of that choice.

Consequences should also be clear for those who have opted to participate in the only viable solution to the virus – a vaccination. They should be free from having to worry if the person next to them is about to give them a disease. They should be able to travel and work without hindrance of a mask, fear, or social distancing.

If we all want our economy to stay strong, if we want our lives back to normal, we’ve got to do more than keep begging people to act responsibly when they just refuse to do so. A home may be a person’s castle, but it’s still part of a larger country. We’re all in this together.

VIN CE N T M. VALVO Publisher, Editor & CEO

4

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Submit your news to editorial@ambizmedia.com If you would like additional copies of National Mortgage Professional Call (860) 719-1991 or email info@ambizmedia.com

www.ambizmedia.com

© 2021 American Business Media LLC All rights reserved. National Mortgage Professional magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher.

Advertising, editorial and production inquiries should be directed to: American Business Media LLC 345 North Main St., Suite 313 West Hartford, CT 06117 Phone: (860) 719-1991 info@ambizmedia.com

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

5

RECRUITING, TRAINING AND MENTORING CORNER

What To Do After Firing A Loan Officer Balancing company and customer needs.

BY DAVE HERSHMAN | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

AVE HERSHMAN

I

t is bound to happen. All of our hires are not going to work out. Invariably you will be in a position to have to “let someone go.” This could be for lack of production or perhaps because their quality of production is not good.

Unfortunately, many in our industry to not have a definitive recruiting plan.

Our history of developing rational firing processes is even worse.

Actually, it can be a vicious cycle. We don’t spend the time necessary getting to know the person, set up expectations or monitor performance. The firing comes too late and is rushed. Then we spend time fighting fires and picking up the pieces. The time spent fighting fires prevents us from hiring in the right way. Then we start over again.

Certainly, the best course of action is to hire the right people. But even in the best of circumstances, you may be forced to terminate mistakes. At this juncture, we will forget about why the hire was a mistake. At this point, we will focus upon what to do after termination.

THE FIRST DECISION It is not uncommon within the industry to require that an employee -- and especially a commissioned loan officer -- be asked to separate the day of termination. Typically, the company is

afraid that this loan officer will not act in the best interests of the company, and we certainly can understand this concern. Every separation is a risk in this regard and a termination is even more important because there are more likely to be hard feelings. So, the question is—are you going to ask them to stay and/or leave? And if they stay, what actions can they take on files?

Of course, it should be specified in the commission plan and/or employment agreement whether a terminated loan officer will be paid for a pipeline in process and for how long. It is not usual for the company to pay for closings or fundings that occur within thirty days of separation and this provision discourages the loan officer from trying to move their pipeline to their new company.

With a larger company, you should get the human resources department involved. You may need a record of written or verbal warnings before you take this action. It is best to document in writing all issues leading up to taking action. Yes, there may be a blow-up which causes a termination to happen, but most of the time, the process is gradual over time and should be documented carefully.

CUSTOMERS COME FIRST Above all else, it is the customers who must be thought of first. Therefore, no matter whether the terminated employee leaves immediately or in a few weeks, and no matter whether the terminated employee is getting paid on the pipeline of existing loans or not, the customer must be contacted to let them know about the separation.

This communication must include not only assurances that their file will be well taken care of, but also include new contact information. The communication can be in writing or via the phone or email, however, in cases in which the closing is coming up in a few days or weeks, the fastest mode of communication is preferable.

Making the customer comfortable will not only alleviate some customer service disasters, it may avoid loss of a pipeline.

THE CUSTOMER IS ALWAYS RIGHT, BUT… Expect that there will be some customers who may take advantage of the fact that their contact is no longer part of the company. It will not be unusual for a customer to “claim” that the loan officer promised something that they did not. Make sure you get both sides of the story before you make a decision on these situations. And, if the customer is right, you must support the claim even if it will cost you money.

The first inclination would be to lower the loan officer’s commission (or eliminate it), but this again is why it should not be a unilateral decision. You may be opening yourself to employment claims otherwise.

TAKE CARE OF THE LITTLE THINGS Termination timing, pipeline management and getting the loans closed are all-important. However, there are many other details that must be taken care of. For example, keys and business cards should be collected. The email account and voice mail should be forwarded immediately. Access to the company “intra-net” should be turned off. There should be enough “little but important details” that it should make sense to have a Termination Checklist— especially for larger companies.

There may be a significant amount of technology which needs to be turned off and/or transferred to others covering.

This might include a CRM, mobile application, marketing software and more.

When you hire someone, an orientation is very important. In the case of firing, you will be doing a lot of unwinding.

Dave Hershman, senior vice-president of sales for Weichert Financial Services.

We Have The Best Non-QM Solution for your

No Income Verified Asset (NIVA) Clients!

Use seasoned assets instead of income to qualify!

A Different Way Home www.fnba.com/mortgage-brokers

800.400.5451

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

7

RICA LACENTRA

THE XX FACTOR

Should A Rebrand Be In Your Future?

Make sure you’re communicating who you are.

BY ERICA LACENTRA | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

I

t may be hard to believe but with 2021 already more than half over, it’s time to start thinking about what marketing initiatives you want to focus on in 2022.

Since 2021 was a year of getting your marketing plan back on track after the wrench that COVID threw, 2022 is truly a time to be able to focus on your company’s future and develop a firm actionable plan. With the ability to have a more stable marketing plan, going into 2022 is a great time to consider a rebrand or at the very least, a refresh of your existing brand. What better way to ring in a new year than with a fresh start?

Now you may be thinking, my current brand is working, so if it isn’t broken, why fix it? However, there are a variety

of reasons why companies should consider updating their brand over time. Let’s get into what those reasons are.

YOUR COMPANY HAS EVOLVED Change is inevitable. The mortgage industry is ever-changing and it’s only natural for a company to have to adjust to what is happening in the space. You may decide to offer new products or services because the shifting market has caused your customers’ needs to change. Or you may need to cut existing products as there is no longer demand for them. Whatever the case may be, there usually comes a time when the brand and branding you started with no longer meshes as well with what you’re offering. This is when you should start considering refreshing your existing brand.

For instance, if you are a mortgage broker who initially only offered FHA loans but then as your business grew you kept adding to your offerings, it would make perfect sense to update your

branding and marketing assets to better represent all of the loan products customers could get from you.

You wouldn’t want to entirely overhaul your brand as you had likely made a name for yourself, garnered loyal customers, and developed a presence in the industry. The backbone of your business hasn’t changed, and you still want to be easily recognizable, you just want customers to recognize your business has grown and you can offer more.

INCREMENTAL STEPS As long as the foundation of your company’s offerings is consistent, adding or removing product offerings are not necessarily a reason for a company to completely rebrand, but are a great opportunity to partially rebrand or update certain elements of your company’s brand.

Focus on making minor adjustments to things like brand icons, elements, or imagery throughout your marketing

A top reason to change is your current brand no longer reflects the vision of your company and does not reflect the direction the company is going in the future.

materials, ads, website, etc. These are

your company and does not reflect

logo, and creating all new marketing

subtle changes that can easily convey

the direction the company is going

materials and major brand assets

what is new with your company. You

in the future. Maybe your business

such as a website. Take the time to do

could even go so far as to make minor

model has changed entirely, maybe

appropriate research and work with

refreshes to things like your logo, such

your customer base has changed

your team to build a new brand that

as modernizing text and elements

significantly over time, whatever the

will accomplish what your current

within the logo.

case may be, plain and simple, you

brand could not.

In cases like this, a brand refresh is

have outgrown your brand.

the original brand while updating it

clear signs that it’s time for a

LOOKING TO A BRIGHTER FUTURE

enough to show customers new things

change. Ongoing trouble gaining

The thought of either partially or

are happening at your company. So,

brand recognition with customers,

fully rebranding can be daunting.

avoid making any major adjustments

customers having trouble connecting

Rebranding is a huge undertaking and

or drastic changes like overhauling

your company name and brand

not something that should be taken

brand colors, debuting a new company

with what you do, or having trouble

lightly. However, it is often necessary

name or company logo. Less is more

differentiating yourself from

as a company grows and changes over

in cases of a brand refresh because you

competitors are clear signs that you

time. Don’t look at this process as a

still want customers to recognize that

need to rebrand. In cases like this, it is

it is still the same company.

burden, instead, think of it as a great

extremely difficult to maintain brand

opportunity. This is your chance to

loyalty and continue to grow your

do everything you were unable to do

business. When companies hit this

with the previous iteration of your

point, it truly is more beneficial in the

brand. So whether you decide to take

all about maintaining the integrity of

YOUR COMPANY HAS CHANGED ENTIRELY

In cases like this, there are often

So, if a brand refresh is appropriate for

long run to rebrand rather than try to

certain instances, when is a complete

make the existing brand work.

rebrand necessary? There are a variety

When you have decided to overhaul

of reasons why a company should

your existing brand, it’s so important

completely overhaul their brand, but

to commit to that effort. Usually,

one of the top reasons is your current

this will entail developing a new

brand no longer reflects the vision of

company name, designing a new

the plunge now or in the future, know that a rebrand is just another way to set yourself up for long-term success.

Erica LaCentra is director of marketing for RCN Capital.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

9

LEW SICHELMAN

THE MORTGAGE SCENE

The Scam That Keeps On Taking Cyber thieves are relentlessly targeting buyers in the middle of their title insurance and escrow process.

BY LEW SICHELMAN | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

F

raud schemes come and go. Romance scams are hot right now. So beware of a new “love interest” who could trick you into falling for them when all they really want is your money.

But one ruse that has been particularly persistent is the wire transfer dodge in which cybercriminals impersonate title firms in trying to steal mortgage payoffs.

So much so that the Secret Service recently issued an advisory warning on a “drastic increase” in the scam.

“We have seen a sharp increase in real estate wire fraud in recent months,” says Stephen Dougherty of the agency’s Cyber Investigation Division.

I first wrote about wire fraud about a half-dozen years ago in my nationally syndicated newspaper column when I heard the general counsel of the National Association of Realtors warn an audience to be alert to what was happening. Six years or so later and the subterfuge is still popular with the thieves who perpetrate it.

It’s

easy to see why. Wire fraud is far more lucrative than robbing a bank. Whereas bank robbers get away with just $1,400 on average per heist, according to Bruce Phillips, senior vice president and information security officer at WFG National Title insurance in Portland, Oregon, the average lost to swindlers in a wire heist is $140,000-$160,000. One poor soul lost $1.2 million, never to be seen again.

TAKEN TO TASK Sometimes marks get lucky. Listen to the tale of Aaron Cole, a vice president of a gear and machine company in Oregon City, Ore., who lost all his money – $123,000 to be exact – when he complied with phony wiring instructions. The e-mail certainly looked legit. It wasn’t, though, and in the click of a mouse, his money was gone.

The criminals quickly whisked the dough to various accounts in the United States and overseas.

Cole had sold his old home and was ready to move with his wife and two children into a new place.

But that happy occasion turned into a nightmare when he had to tell his wife their closing money had vanished. “I never felt like that before in my life, and I hope I never feel like that again,” he told my

associate, Mark Fogarty.

“The scammer got between my correspondence with the title company and me,” he said. “To my untrained eye, [it] looked to be from the same people I’d been working with all along.”

By the time the legit title company called a week later with the actual wiring instructions, he recalled, “I knew my money was gone and there was very little chance of ever recovering any of it.”

Luckily, WFG, his title company, made Cole whole, allowing him to close on his home and move in just in time for Christmas. In return, he became something of a spokesman for the company, telling his story to media outlets to warn consumers about the dangers of real estate “phishing” scams.

TAYLORED APPEAL More recently, the American Land Title Association told the story of a chap named Taylor – his last name was omitted to protect his privacy – a move-up buyer outside of Denver who received an email appearing to come from the title company and asking him to wire his closing funds early in the transaction.

“The emails appeared convincing and included my exact amount for closing that had previously been discussed by the title company,”

According to the FBI’s latest Internet Crime Report, wire fraud has cost companies and home buyers more than $3.5 billion in recent years.

Taylor told ALTA. “I received the wiring instructions and wired just under $80,000 as instructed. Two days later, I was notified that the money did not arrive at the title company and that’s when I realized my life savings had been stolen.”

Fortunately for Taylor, his title company, Title Forward, advised him how to notify the financial institutions involved of the crime. But after two days, the banks provided no assurance his funds were secure, so the company called in Thomas Cronkright, a funds recovery expert who himself was a wire fraud victim.

Cronkright, who runs a company called CertifID, gathered the emails and bank information and deployed CertifID’s Funds Recovery Services to launch a coordinated effort that involved the Secret Service to recover the funds. Within a few hours, Taylor’s money had been secured.

And within a week of complying with the criminal’s wire request, his life savings was back in his bank account.

the guise of the title company or other professionals involved in the transaction.

The instructions often tell buyers to send the money immediately – sometimes as digital currency – or the transaction will be delayed or canceled altogether. And if an unsuspecting buyer complies, his money is gone in a flash.

written proof from the buyer that he received your instructions.

Meanwhile, ALTA, the title business trade group, offers a number of resources to help protect against wire fraud and raise awareness about the threat, including a wire preparation checklist that can be used as a best practice for verifying outgoing wire information and a rapid response

LO ALERT

plan that can help aid in the recovery of funds. The organization also has produced a rack card explaining wire fraud and the steps consumers should take to avoid becoming a victim.

Meanwhile, all you lonely guys and gals out there, your antenna should wiggle when someone of the opposite sex comes on to you. Be particularly wary of a tragic story or an emergency that pops up after you’ve known that person for only a short period. That’s how romance scams begin.

FBI INTEREST Of course, very few victims are as fortunate as Taylor or Aaron Cole.

Nevertheless, Taylor said he found the entire experience “shocking,” adding that “if I can be tricked, anyone can.”

Turns out, many people are. According to the FBI’s latest Internet Crime Report, wire fraud -- technically referred to as Business Email Compromise – has cost companies and home buyers more than $3.5 billion in recent years.

You rarely hear of these victims’ stories, largely because they are too embarrassed to come forward. But the scheme accounts for nearly half of all cyber crime losses. It starts with a “phishing” expedition in which fraudsters search the Internet for folks involved in a real estate transaction.

And with more than five million sales a year, there are plenty of those.

Once the bad guys latch on to e-mails between buyers and their agents and lenders, they gain transaction details, including the amounts buyers are required to transfer for their pending closings.

Armed with that information, they send fake wiring instructions under

Consequently, it’s incumbent upon real estate agents and loan officers to alert their clients that it’s entirely possible they will receive such a request and what to do about it.

Reminding them frequently of the possibility so often won’t hurt, either.

Warn them that if they receive any e-mails from anyone claiming to be a part of the transaction, they should call you to verify that fact before doing anything else.

Cronkright, the recovery expert, also advises lenders and title agents to communicate clearly with clients about how and when the buyer will be called upon to transfer closing proceeds. Tell them, too, that the wiring instructions will never change.

When the final instructions are sent, do so prior to sharing the final settlement statement. Don’t send the instructions by regular e-mail. Rather, send them in a secure, encrypted message. Make sure you obtain

Lew Sichelman is a contributing writer to National Mortgage Professional magazine. He has been covering the housing and mortgage sectors for 52 years.

His syndicated column appears in major newspapers throughout the country. He also has been the real estate editor at two major Washington, D.C., dailies and spent 30 years on the staff of National Mortgage News, formerly National Thrift News.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

11

All pluses.

No minuses.

Our redesigned Pricing Calculator helps you deliver better loan options.

When you’re a Rocket ProSM TPO partner, you get tech advantages that help you grow your business. One of our best: our completely redesigned Pricing Calculator. Now you can compare three loan options on one screen and download a Clear Quote PDF to present to your clients. You can price out loan options with fewer client details.

All you need is the loan type, property information and loan amount. It all adds up to a smoother experience for you and better loan options for your clients.

Learn more at RocketProTPO.com.

12

Quicken Loans, LLC; NMLS #3030; www.NMLSConsumerAccess.org. Equal Housing Lender. Licensed in 50 states. AL License No. MC 20979, Control No. 100152352. AR, TX: 1050 Woodward Ave., Detroit, MI 48226-1906, (888) 474-0404; AZ: 1 N. Central Ave., Ste. 2000, Phoenix, AZ 85004, Mortgage Banker License #BK-0902939; CA: Licensed by Dept. of Business Oversight, under the CA Residential Mortgage Lending Act and Finance Lenders Law; CO: Regulated by the Division of Real Estate; GA: Residential Mortgage Licensee #11704; IL: Residential Mortgage Licensee #4127 – Dept. of Financial and Professional Regulation; KS: Licensed Mortgage Company MC.0025309; MA: Mortgage Lender License #ML 3030; ME: Supervised Lender License; MN: Not an offer for a rate lock agreement; MS: Licensed by the MS Dept. of Banking and Consumer Finance; NH: Licensed by the NH Banking Dept., #6743MB; NV: License #626; NJ: New Jersey – Quicken Loans, LLC, 1050 Woodward Ave., Detroit, MI 48226, (888) 474-0404, Licensed by the N.J. Department of Banking and Insurance.; NY: Licensed Mortgage Banker – NYS Banking Dept.; OH: MB 850076; OR: License #ML-1387; PA: Licensed by the Dept. of Banking – License #21430; RI: Licensed Lender; WA: Consumer Loan Company License CL-3030. Conditions may apply. ©2000 - 2021 Quicken Loans, LLC. All rights reserved. Lending services provided by Quicken Loans, LLC, a subsidiary of Rocket Companies, Inc. (NYSE: RKT) “Quicken Loans” is a registered service mark of Intuit Inc., used under license. | NATIONAL MORTGAGE PROFESSIONAL MAGAZINE Quicken Loans, 1050 Woodward Ave., Detroit, MI 48226-1906

SPONSORED BY

HOW NMP’S MONTHLY SECTION OF HANDS-ON PRACTICAL ADVICE

BUILD A BROKER How To Respond If The IRS Comes Knocking

YOUR FIRST MILLION DOLLARS How To Make Adversity Work For You How To Handle The New Office Rules CAREER TICKER: People On The Move

PEOPLE ON THE MOVE //

> Guild

Mortgage promoted Michelle Castle to area manager in North Texas.

> Kevin

McKenzie, SimpleNexus’ current chief financial officer, will be taking on the additional responsibilities of chief operating officer.

> MAXEX

named Brennan Walters as the company’s chief revenue officer.

> John Aslanian

is being promoted from SimpleNexus’ senior vice president of sales to the company’s chief revenue officer.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

13

14

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE

SPONSORED BY

BUILD-A-BROKER

The Secret To Seeing Clearly Keys to understanding vision, values, goals and strategy

BY BRIDGET WESTON | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

B

usiness owners and startup entrepreneurs often spend a great deal of time defining their vision, values, goals and strategy, but these well-known concepts are commonly muddled.

This Adviso blog gives an example, “A strategic plan is sometimes confused with a list of goals—when in fact, it should be a reflection on what success means for the company or organization, and how they plan to optimize for that success.”

These are all separate and distinct things that, if used correctly, can catapult your business into success.

When confused, however, you’re less likely to reap the benefits of each.

Get a better understanding of how your vision, values, goals and strategy can help you build a strong company and then put each one to use correctly.

1. START WITH COMPANY VALUES First and foremost, it’s important to define your company’s core values.

This will dictate elements of your branding, marketing and customer experience. It will also eventually play into your company culture. This starts with asking yourself: why does this company exist? Why do I have this business and what can it provide to the world?

The answers to these questions help you determine your company values, which also dictate how you want your employees to interact with others and how audiences connect with your business. What’s more, your core values will help you make decisions, like hiring or letting people go, while also prioritizing goals and plans for the business.

As you brainstorm your core values, Craig Cincotta, an Entrepreneur contributor, suggests a few common values that all businesses should consider: · Transparent · Accountable · Problem Solver · Ambitious It’s important to remember that just like your brand slogan and logo, your values generally don’t change. They should become synonymous with your business, to both you, your customers and employees.

2. THINK BIG WHEN DEFINING YOUR VISION Every great business has a vision for the future. But unlike a mission statement, which defines where the company should be successful, your vision represents how you think others will respond or change when they have access to your company’s products, services, and success.

Lindsay Kolowich with HubSpot describes vision, saying: “A vision statement describes where the company aspires to be upon achieving its mission…[and] describes where the company wants a community, or the world, to be as a result of the company’s services.”

Your vision doesn’t focus on growth rates or revenue but focuses on the future. It defines what you want to create or achieve as someone providing a valuable service or product. As you define your vision, aim for creating clarity and focus.

It’s tempting to talk in vague terms that are difficult for others to interpret, much less follow. Employees, partners,

You can’t do it all, so you have to use your core values to stay focused on what’s important.

PEOPLE ON THE MOVE //

> Freddie Mac named Jerry Mauricio as its senior vice president and chief compliance officer.

> Andria

Lightfoot is being promoted from her role as vice president of professional services of SimpleNexus to the role of chief customer officer.

> Mr. Cooper

Group Inc. named Shawn Stone as executive vice president and chief revenue officer.

> Anchor Loans,

a nationwide financial provider for fix-and-flip entrepreneurs, announced Matt Miles as the company’s new chief capital markets officer.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

15

BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE

investors, vendors, customers and others must be able to grasp your vision for it to work. For example, IKEA’s vision statement is: “Our vision is to create a better everyday life for many people.”

Straight-forward, clear and concise.

Use this as inspiration to define yours.

3. BRING GOALS AND STRATEGY TOGETHER Setting goals, and creating a strategy to get there, might be the most challenging step. It’s no secret that people often struggle to achieve their goals, but people and businesses that take a proactive approach to setting and following through with their goals are more likely to be successful. According to a study by Dr. Gail Matthews at Dominican University of California, 70 percent of people who shared their goals and set up regular progress checks were successful compared to 35 percent who kept their goals private.

Here are some examples of goals: · Bring in $250K revenue in Q1. · Earn 50 new customers in 2020. · Drive 50% of leads from Facebook in Q3.

Your goals are your business objectives. So ask yourself: Why do I want to accomplish that? And then, how can I turn that into an actionable and specific goal?

After setting your goals, it’s important to be transparent with your employees about what you hope to achieve, which requires a clear strategy that you and your team will use to reach them. Your strategies aren’t set in stone and may change all the time, in small steps or radical revisions. That’s critical to understand because business conditions, markets, competition, consumer preferences and a wide range of other factors are constantly in flux.

SPONSORED BY

It’s no secret that people often struggle to achieve their goals, but people and businesses that take a proactive approach to setting and following through with their goals are more likely to be successful.

If your strategy remains fixed, your business will struggle to compete.

Remember that creating a sound strategy also means choosing what not to do. You can’t do it all, so you have to use your core values to stay focused on what’s important. Think of your strategy like the roadmap you use to achieve your vision and reach your goals, guided by the GPS of your values.

Once your values, vision, goals and

strategies are outlined, you can use them together to grow a successful business.

Bridget Weston is the CEO of the Service Core of Retired Executives (SCORE) Association, where she provides executive leadership and works directly and collaboratively with the Board of Directors to establish the vision and direction of SCORE.

PEOPLE ON THE MOVE //

> Mr. Cooper

Group Inc. named Jay Jones as the company’s executive vice president.

16

> Deephaven

Mortgage named Luke Turner as a regional sales vice president of wholesale.

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

> Scott Miller

joined the Bee Mortgage App board and has also taken a significant stake in its latest seed round.

> Deephaven

Mortgage named Sunny Thiara as a regional sales vice president of wholesale.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

17

HOW: HANDS ON PRACTICAL ADVICE LEADERSHIP LESSONS

Warren Buffett’s Four Rules For Success Simple and sage, but too often overlooked

BY HARVEY MACKAY | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

I

love to study creative and successful people. And who better than Warren Buffet, the Omaha multi-billionaire and chairman of Berkshire, Hathaway, Inc. He recently listed the four common-sense principles that contributed to his mega success, and here’s my take on his formula for prosperity. Unfortunately, they are not commonly practiced.

BE PICKY Number one is to choose your friends wisely. I have friends whom I’ve known since I was a little boy, friends from college, friends who started out as business contacts, golfing friends, friends who share my passion for community service, and friends I met last week. And they all have one thing in common: We like each other for what we are, not what we want each other to be.

Greek philosopher Socrates was asked, “What is the most beneficial thing a person can acquire?” He answered, “A friend who gives sincere advice.”

I am fortunate to have friends who aren’t afraid to ruffle my feathers when it comes to advice. If I need to adjust my attitude, alter my course, back off or move forward, I have

friends who will tell me.

And because I value their friendship, I listen. And I will return the favor, if necessary.

And we will remain friends because friendship is like a bank account: You cannot continue to draw on it without making deposits.

BE INQUISITIVE Buffett’s second point is continuous learning. I’m a big believer in lifelong learning. You don’t go to school once for a lifetime; you are in school all your life.

We can’t put enough of a premium on the importance of education.

Education can help avoid the high price we pay for experience – the great teacher that helps us gain knowledge and avoid making the same mistake twice or three times.

Education is an investment and never an expense. Consider education a capital improvement. Don’t be ashamed to borrow, particularly to replenish your professional inventory.

In fact, self-improvement is the one area in which you should really

increase your spending, not decrease it.

I like to say, if you think education is expensive, try ignorance. So why not make continuous education a new priority? Learning is like riding a bicycle. You don’t fall off unless you stop pedaling.

BE FORTHCOMING Point number three is to improve your communication skills. Buffett said: “If you improve your communication skills, I will guarantee you that you’ll earn 10% to 50% more money over your lifetime.”

It’s been said that a message sent is only as good as the receiver’s perception of it. Verbal communications tend to create confusion and misunderstanding for a remarkably simple reason: the 500 most commonly used words in the English language have more than 14,000 definitions.

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

PEOPLE ON THE MOVE //

> LoanDepot,

Inc. appointed Karin Lockovitch as the company’s executive vice president and chief risk officer.

18

> ChainLogix

Mortgage Solutions hired Jane Jaeger as the company’s vice president, Property Tax Intelligence and Special Projects Group.

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

> Atlantic Home

Mortgage named Bert Gary as the company’s risk and compliance manager, for its Alpharetta, GA branch.

> Guaranty

Home Mortgage Corporation hired Grace Sweeney as the company’s director of marketing.

SPONSORED BY

time management.

Saying no is not the same as saying never. It’s an acknowledgement that you respect yourself as well as the person doing the asking. Believe me, it won’t stop them from asking again!

One of my favorite quotes from the Oracle of Omaha represents what I believe to be an intelligent approach to both business and investing: “Be fearful when others are greedy and greedy when others are fearful.”

BE DECISIVE Buffett’s fourth point is the ability to say no. Why is it so hard to say no?

It’s just a tiny two-letter word, but it is tremendously liberating. So why do we feel so guilty saying no?

Some people have a great sense of duty and obligation. They feel like they have to say yes to almost anything they are asked to do – and end up feeling resentful and burned

out. Remember, taking care of yourself is important, too.

Let me just add, from a management perspective, I love when people are willing to take on extra tasks when necessary. I do not love when their work is substandard or their usual responsibilities suffer just so they can prove how many balls they can juggle at one time.

That tells me that they are weak on

Depend on Us. Deliver for Your Clients.

As a trusted local wholesale lender, we’re committed to providing great service for you and great results for your clients – each and every time.

No FICO score (unless PMI loan)

Up to 97% financing

Cash-outs up to $2.5M (no seasoning)

Discounted rates

*

Loan amounts up to $3.5M with CLTVs to 90%**

Bijan Farassat (917) 731-4870 bfarassat@ridgewoodbank.com NMLS ID# 646654

24/7 access through our online portal

Joseph Noviello (718) 240-4780 jnoviello@ridgewoodbank.com NMLS ID# 625762

*On primary residences. (LTVs apply). | **1–2 family and condo purchases and rate and term refinances – primary residences. | Terms and conditions subject to change without notice. Loans subject to credit approval. © 2021 Ridgewood Savings Bank. All rights reserved.

As Warren Buffett knows, the real opportunity for success lies within the person and not in the job.

Mackay’s Moral: One more Buffett gem: “You only have to do a few things right in your life so long as you don’t do too many things wrong.”

“I cannot express how grateful I am to have a broker relationship with Ridgewood. Time and time again, you’re the lender I count on for personal attention and unparalleled service.”

Mary Ann Scaggs Sr. Mortgage Loan Originator Purchase, NY

www.ridgewoodbank.com

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

19

HOW: HANDS ON PRACTICAL ADVICE

SPONSORED BY

MARY KAY SCULLY

BENCHMARKS & BEST PRACTICES

Looking To An Eventful Season The conference circuit is getting a kickstart

BY MARY KAY SCULLY | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

L

ast month, we discussed going back to the office – what to do and how to do it – but now we’re seeing more businesses and organizations open their doors to full capacity. This fall, conference season will be in full swing, or at least close to it – many of them for the first time in well over a year. With this, you may have to get out of your comfort zone on an even larger scale than just the office.

For some, this is the news they’ve been waiting for and they already have their bags packed for the first in-person event of the season. Others, however, may be curled up in their pajamas in their home office, dreading a return to the outside world. Regardless of where you sit on the remote work/100% in-person environment spectrum, there are quite a few aspects of event season to keep in mind.

HOW TO BE AN ATTENDEE It’s been quite a while since many of us have been to a live in-person event, so it’s time to refresh everyone’s memory on all that goes into attending events, conferences and business gatherings.

When attending a conference, the first thing to think about is transportation. Do you need to hop on a plane? If so, make

sure you’re familiar with your company’s travel policy, as well as your own comfort level when it comes to flying postpandemic. Will you need to rely on public transportation? Think about if or how you would approach a train, bus, or shuttle.

The best plans for a great conference experience are no good if getting there is difficult or impossible.

Now, once you arrive, you may want to ask yourself how do you want to approach mingling with other attendees? Are sharing cocktails and going out to dinner with customers and colleagues a must-do, or does it elicit a hint of anxiety? If there are any common gathering spaces, do you feel comfortable interacting there, or would you prefer to keep to yourself? In the moment, it’s easy to feel pressured to step outside your comfort zone.

Having a plan in place before you touch down will help you not only stick to the plan, but it also will help you interact with others in the way that’s most comfortable for you. The same goes for any company policy. Depending on your organization, there may be rules for how you should interact with people as you go to events, so make sure you’re familiar with your company’s health and safety policy so you don’t run the risk of stepping outside of those policies.

Beyond simply meeting people, think about how you will network. Now, people will be far less likely to exchange physical business cards. LinkedIn has QR codes that allow users to connect digitally instead of having to rely on passing out business cards. With that in mind, take some time in advance of your upcoming events to update your social media profiles and websites.

WHAT’S NEXT FOR VENDORS? As a vendor, it’s important to decide how you will facilitate interaction at your booth. Think about what your booth will look like. Will there be more room for people to spread out or will you plan to limit the number of people at your booth at once?

Will there be items, papers, or tchotchkes people will touch?

In the past, I’ve seen everything from massage chairs to standing money boxes for people to climb into, and everything in between. Even if less extravagant, still most vendors, if not all of them, may have small gifts and branded prizes to entice conference-goers to spend time at their booth. If people do not feel comfortable loading up their bags with prizes or papers, ask yourself how you might engage with them otherwise? Think about how you can still provide conference attendees a great experience that’s completely touch-free.

Another question to ask yourself as a vendor is, how will you meet one-on-one with prospects? Will private meeting rooms still be your go-to or will you opt for outside meetings? Will you have one-onone meetings at all? All are valid questions to ask and determine as you plan for your next event.

As someone who hosts conferences, Vince Valvo, CEO of American Business Media LLC, firmly believes in following CDC guidelines and that “conferences are for networking and growing your skill set, but none of that matters if you’re not healthy. Safety comes first and you’re better in health.”

PREPARATION IS KEY While it’s still hard to say what this fall’s conferences will look like, it’s safe to expect that many traditional conference experiences have changed, but it’s also possible that some have stayed the same.

Either way, take some time developing your own plan based on your comfort level and how you’d like to navigate certain situations.

No matter how they look, it’s exciting to see events coming back. Enjoy your time, make the most of it and, most importantly, be safe. I hope to see you out there!

Mary Kay Scully is the Director of Customer Education at Enact, leading the development of the company’s customer education curriculum. The statements in this article are solely her opinions and do not necessarily reflect the views of Enact or its management.

BROKERS DON’T GROW ON TREES. THEY GROW WITH PENNYMAC. In any market, growth is the name of the game. With PennyMac you’ll have access to the people, process and performance to do just that. Your dedicated Broker Operations Manager (BOM) will be your single point of contact, and an ally that will always keep a pulse on your pipeline. Access our consistent pricing, breakthrough technology and the helpful tools you need to achieve real growth.

DEDICATED TEAM

POWER PORTAL

Our national sales and ops team is dedicated to our brokers, and we know this is a people and relationship business. Our team truly distinguishes us from the competition.

Our POWER portal delivers a host of features including an easy-to-use price scenario tool, the ability to lock loans until midnight, and 24/7 pipeline transparency.

REDUCED MI RATES WITH OPTIMIZE™

RETAINED SERVICING

Ensure your borrowers get the best MI pricing with OptiMIze, which automatically delivers the most competitive MI rates available.

As a Top 10 servicer, we retain the servicing on our loans, so you know your customers will remain in good hands throughout the life of the relationship.

Become a broker partner pennymacbrokerdirect.com Equal Housing Opportunity © 2021 PennyMac Loan Services, LLC, 3043 Townsgate Rd, Suite 200, Westlake Village, CA 91361, 818-224-7442. NMLS ID # 35953. For licensing information, go to: www.nmlsconsumeraccess.org. Trade/service marks are the property of PennyMac Loan Services, LLC and/or its subsidiaries or affiliates. Information is intended solely for mortgage bankers, mortgage brokers, and financial institutions. Arizona Mortgage Banker License # 0911088. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Colorado office: 700 17th St, Saite 200, Denver, CO 80202, (866) 436-4766. Georgia Residential Mortgage Licensee #33027.

Massachusetts Mortgage Lender License # MC35953. Minnesota: This is not an offer to enter into an agreement and an offer may only be made pursuant to Minn. Stat. §47.206 (3) & (4). Licensed by the N.J. Department of Banking and Insurance. North Carolina Permit No. 104753, 112228, 112874, 112877, 113746. Rhode Island Lender License # 20092600LL. Texas office: 2201 W. Plano Parkway, Suites 150 and 300, Plano, TX 75075. Washington Consumer Loan License # CL-35953. For more information, review https://www.pennymacbrokerdirect.com/state-licenses. Loans not available in New York. Some products may not be available in all states. Information, rates and pricing are subject to change without prior notice at the sole discretion of PennyMac Loan Services, LLC. All loan programs subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Other restrictions apply. The information included in this communication is considered confidential and proprietary, and any unauthorized reproduction is prohibited. All rights reserved. (01-2021) 2019-2020 Source MORTGAGE IMF. *Based on BPMI industry comparisons.

NATIONAL PROFESSIONAL MAGAZINE |

21

heard by In our daily email newsletter, our weekly NMPTV showcases, or our monthly publication, NMP magazine brings you the strategies and observations of the top executives in the mortgage world. The industry’s best share their views. Here are some of their observations from the past few weeks, as heard by NMP.

“Despite the attention on relief programs, nearly one-fifth of current mortgage customers have had no interaction with their servicer during the past year.

Mortgage servicers will really need to up their customer engagement games as the marketplace stabilizes.”

—Jim Houston Dir. of Consumer Lending Intelligence JD Power & Associates

“Without the equity from a previous home sale, first-time home buyers face more challenges in coming up with a down payment. In a housing market where prices are rising at record rates, especially when compared to renter incomes, the everincreasing sum of a 20% down payment can feel out of reach.”

—Nicole Bachaud Economic Data Analyst Zillow

“For families already struggling to make ends meet, an inaccurate report can be the difference between homelessness or settling into a safe and affordable home.”

—Dave Uejio Acting Director Consumer Finance Protection Bureau

“During this difficult time, many young people say they saved on transportation, shopping, dining out and child care. Some who remained employed and saved enough for a down payment were able to join in on the hot pandemic housing market.”

—Manny Garcia Population Scientist Zillow

“Black people who succeed in buying a home have to be Superman or Superwoman. They need to have higher degrees, they have more debt, they face persistent rejection and generally carry around bigger burdens to achieve the same goal as white people.”

—Bryan Greene VP of Policy Advocacy National Association of Realtors

Bryan Green 22

Jim Houston

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Dave Uejio

Nicole Bachaud

Manny Garcia

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

23

24

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

25

THURSDAY, AUGUST 19 PRECONFERENCE EVENTS

9:00 AM — 12:00PM

Build-A-Broker MELROSE 3 & 4

PRESENTED BY Tyna-Minet Anderson This program is designed to show you the basics of setting up your business – from how to rent space, to what accounting programs are recommended – and will also cover topics including choosing your loan origination systems, how to pick a CRM system, and more. This preconference workshop is free, but seating is limited and pre-registration is required.

9:00 am Brokerage 101

Brokerage 101 focuses on the foundation for establishing your business, presented by experienced mentors. This course includes: • LO Compensation Basics • Choosing an accounting program and payroll provider • What is the right corporate form for you?

(LLC vs. Corp.)

• How to determine if your workers are employees or independent contractors.

• LO Compensation Basics ‍10:00 am

products that you can add to your lineup as you create your broker shop.

11:00 am Brokerage 102

Brokerage 102 focuses on the additional foundational issues for establishing your business, with topics such as: • Policy & Procedures that every company needs, including BSA/AML, Sexual Harassment, and more • Marketing & Compliance — under RESPA, TILA, Reg. N, the CFPB, getting leads, comarketing with Realtors, and more.

• Compliance training, auditing, and testing.

1:00 PM — 4:00 PM

Your First Million Dollars MELROSE 3 & 4

Becoming an LO can become a lucrative career, if you know how to set yourself apart. Your First Million Dollars is a unique program designed to connect you to the story of your success - and your wealth.

This pre-conference workshop is free, but seating is limited and pre-registration is required. No one will be admitted after 2:00 p.m.

Attendees will spend 15 minutes with each coach, then advance to the next coach. Coaches will have available follow-up programs for all attendees, and special offerings for everyone.

Establish A Competitive Advantage With A Varied Product Lineup Few brokerages can fully grow without offering more than the standard-vanilla residential home mortgage. We're bringing in product experts and broker practitioners to discuss a bevy of diverse

26

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

1:00 p.m.

Ralph LuVuolo Sr. Also known as the Mortgage Godfather, Ralph LoVuolo Sr. is a coach/trainer/ visionary to mortgage professionals at all levels. Ralph’s vast experience in the mortgage industry is demonstrated

by having been involved in billions of dollars of mortgage production.

He is a master educator who has the unique knack of being able to make complicated subjects appear simple.

1:45 p.m.

Adam Smith Adam P. Smith is the President and founder of The Colorado Real Estate Finance Group, Inc., a commercial and residential real estate finance firm. He started the company in 2005. During his career he has helped thousands of clients, both individuals and corporations, in their goals regarding real estate finance as well as both personal and corporate finance and has personally written billions of dollars in mortgage and finance deals.

2:30 p.m.

Jennifer Du Plessis Jen Du Plessis, America’s Mortgage Mastery Mentor, helps mortgage loan officers and real estate agents who are overwhelmed, stressed out, and sabotaging their personal lives for the sake of their business to multiply results in record time and have the courage to say yes to their personal lives (which sometimes means saying no to clients).

3:15 p.m.

Nick Carpenter Nick Carpenter is the founder of The Legion of Loan Officers, and one of the most sought after thought leaders and marketers in the mortgage industry. He is a “Realtor Attraction” expert, known for helping loan officers add 10 great referral partners within 90 days. Nick is an Eagle Scout and U.S. Air Force veteran, having served in Iraq.

Tyna-Minet Anderson

Ralph LoVuolo Sr.

Adam Smith

Jennifer Du Plessis

FRIDAY, AUGUST 20

Private Lending Trends in 2021 MELROSE 3 & 4

Non-QM Summit

9:00 AM — 12:00 PM

Certified Military Home Specialist Course MELROSE 3 & 4

PRESENTED BY Beverly Frase Set yourself apart from your competition by becoming a Certified Military Home Specialist. Boots Across America exists to help military personnel and their families by educating housing professionals on how to work with them; by helping them and their spouses transition into suitable jobs and by finding new ways to help service members everywhere and the families who support them.

Beverly Frase

SESSION B

8:45 AM — 12:00 PM

ROCKET PRO TPO MAIN STAGE Non QM loans are a critical tool for mortgage originators, but this year there have been significant shifts in the industry caused by the ripple effects of the pandemic. Originator Connect is pleased to present The Non QM Summit, a specialized half-day program that takes attendees inside the thinking, planning and programs of the nation’s leading Non QM providers. ‍‍This session requires preregistration

Nick Carpenter

1:00 PM KEYNOTE SESSION

Exponential Growth By Removing Friction

PRESENTED BY Michael Ramin The mortgage market is constantly changing and the rise of private money lenders has been a big contributing factor to that change. Private lenders are more commonplace than ever.

ROCKET PRO TPO MAIN STAGE PRESENTED BY Barry Habib

3:00 PM — 3:45 PM

Increase production significantly by providing valuable solutions to the current market challenges such as: • Lack of inventory • Proper evaluation of bids over asking price • Competing against cash buyers • Helping discouraged buyers stay engaged • Combat concerns about housing bubble • Affordability concerns • Time constraints • Amplifying your message • Interest rate fluctuations ‍ Barry Habib is an American entrepreneur and frequent media resource for his mortgage and housing expertise.

Ratcheting Up Your Realtor Network

CONCURRENT SESSIONS SESSION A

ROCKET PRO TPO MAIN STAGE PRESENTED BY Eric Mitchell In this session, you will learn how to partner with the top 5% of Realtor teams in your local market! Learn how Eric Mitchell partnered with the #1 ReMax Agent in the world for 10 years, and how you can replicate his strategy anywhere!

SESSION B

2021 White Knuckle Lending: Preparing For 2022 CELEBRITY 5

PRESENTED BY Will Fisher In this session you will see a market recap of 2021 and learn where the hockey puck is headed in 2022. Learn how to maximize your lead spend based on the new programs that are projected to dominate the lending landscape in 2022.

2:00 PM — 2:45 PM

CONCURRENT SESSIONS

Upon successful completion, you will receive your Certified Home Military Specialist certificate.

SESSION A

Beverly Frase With more than 20 years experience in real estate and finance, Beverly Ray Frase, Founder, Boots Across America, developed and instructed the first Certified Military Home Specialist Course in 2009. Continually updating the frequent industry changes, she has trained more than 10,000 graduates.

PRESENTED BY Paul Yatooma Discover how a 3-person brokerage firm grew, re-invented and went head-to-head with big banks to become America’s largest mortgage lender. Paul Yatooma, Vice President at Rocket Pro TPO, shares philosophies that you can use to shape innovation, client service, marketing, technology and partnerships.

Harnessing Your Superpower ROCKET PRO TPO MAIN STAGE

SESSION C

Save Time And Money With Tech MELROSE 3 & 4

PRESENTED BY Ernie Graham It’s no secret that investing in the right technology will help you grow your business. But how do you find time to

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

27

Paul Yatooma

Michael Ramin

FRIDAY, AUGUST 20 CONTINUED

evaluate your options? Ernie Graham, Co-Founder and CEO of Homebot is the visionary behind the client-for-life solution that drives repeat and referral business for lenders by empowering consumers to build wealth through homeownership.

Eric Mitchell

Will Fisher

Ernie Graham

Mary Kay Scully

win all potential borrowers in your market. Rocky Foroutan, CEO of LenderHomePage shares his secrets that have helped his largest customers increase leads, convert at a higher rate, and delight borrowers.

4:00 PM — 4:45 PM

CONCURRENT SESSIONS SESSION A

Managing the Busy: From Action to Impact

ROCKET PRO TPO MAIN STAGE PRESENTED BY Mary Kay Scully This session focuses on ways to master control and time management strategies and learn best practices in professional business communication and their impact on customer service ratings and referral possibilities.

SESSION B

Leveraging Technology To 10x Your Lending Business CELEBRITY 5

PRESENTED BY Michael Loop We will discuss how PeerStreet's lending partners are growing originations from 1-2 loans a month to 20-30 with no additional capital or resources. In this presentation, you will get a sneak peak into how 1000s of lenders are leveraging PeerStreet's platform and tools to improve their businesses.

SESSION C

Instantly Dominate Your Competitors And Win Your Market MELROSE 3 & 4

PRESENTED BY Rocky Foroutan In this session, learn how to instantly dominate your competitors and

28

5:00 PM — 6:15 PM KEYNOTE SESSION

The New Mortgage World, And Your Place In It ROCKET PRO TPO MAIN STAGE Join an amazing power panel of some of the industry’s most sought-after peers. Please join Barry Habib, founder of MBS Highway; David Luna, president of Mortgage Educators & Compliance; and Rob Chrisman, Capital Markets Consultant at Chrisman Inc., as they take on changing regulations, marketplace and economic forces reshaping the mortgage market in a Covid-19 world.

Don't miss out on this exciting networking event to kick off the start of OriginatorConnect!

SATURDAY, AUGUST 21

Moderated by Kelly Hendricks, EVP of Delmar Mortgage and Managing Editor of Mortgage Women Magazine.

6:30 PM — 9:00 PM

Havana Nights Cocktail Party

PLANET HOLLYWOOD PLEASURE POOL DECK ‍ Celebrate the first day of OriginatorConnect 2021 at the Havana Nights Cocktail Party! Bring your Panama Hats and colorful attire, and dance along to mamba, salsa, and live samba dance while enjoying an array of colorful and refreshing cocktails.

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

9:00 AM KEYNOTE SESSION

Helping Minority Communities Into The Mortgage Market ROCKET PRO TPO MAIN STAGE It’s clear that Hispanic and other minority populations are going to be the primary demographics in this nation. But what are mortgage lenders doing now to be more inclusive?

Michael Loop

Rocky Foroutan

Originator Connect is proud to spotlight Patty Arvielo, president of New American Funding. With her husband – company CEO Rick Arvielo – New American has undertaken initiatives such as Latino Focus, which drove nearly a quarter of the company’s loan volume from the Hispanic community. Its New American Dream initiative targets Black homebuyers, resulting in a market share of that community twice what the industry average is.

10:00 AM — 10:45 AM

CONCURRENT SESSIONS SESSION A

The Biggest Missed Opportunity In Mortgage Lending ROCKET PRO TPO MAIN STAGE

PRESENTED BY Alex Kutsishin On average, lenders hold on to fewer than 20% of past customers. That’s the worst customer retention rate of any major business sector, and the problem is only getting worse. But some lenders are beating the odds — and you can, too.

Alex Kutsishin

Ralph Rosynek

Jeffrey Tesch

SESSION C

Finding Today's Opportunity in Reverse CELEBRITY 5

PRESENTED BY Ralph Rosynek Are you prepared for one of the fastest growing origination opportunities?

Loan origination activities more than ever continue to reflect the fastest growing homeowner demographic, as 10,000 or more Americans reach age 62, needing specific retirement planning and resource tools as components to a financial longevity strategy. Today’s Home Equity Conversion Mortgage will be one of those important components for many. Are you prepared to address the lending needs of older Americans with loan programs, product education, staffing and a marketing plan? Do you need to fast track this demographic to increase your potential growth and marketshare objectives? Let’s expedite the discussion and begin a pathway to this growing origination opportunity.

Presented by Ralph Rosynek, SVP of Moneyhouse.

Transitioning from the Refi Boom to Untapped Opportunities: Leveraging Commercial Mortgages for Residential Properties PRESENTED BY Jeffrey Tesch While the pandemic has affected many aspects of the real estate industry and the refi boom is showing signs of slowing down, real estate investor activity and demand for single-family homes remains stronger than ever. Now is the time to expand your product offerings to cater to this segment of the market.

for brokers to quickly and efficiently access the tools they need to be the go-to source for customers. Whether the market is for refis or purchases, it’s changing, and it’s critical for brokers to know they have partners who they can trust.

12:00 PM

EXHIBIT HALL OPENS Due to social distancing requirements, the number of attendees in the exhibit hall at any one time may not exceed 250 people.

1:00 PM — 1:45 PM KEYNOTE SESSION

Amplify Your Influence ROCKET PRO TPO MAIN STAGE

Everything we are asked to do as leaders and sales professionals requires us to influence behavior. Our success or failure does not come down to whether we are charismatic, visionary, or inspirational but whether we can influence our customers, team members, partners, and even our family to behave in ways that improve results.

SESSION B

MELROSE 3 & 4

Eric Morgenson

11:00 AM — 12:00 PM KEYNOTE SESSION

Partners in Progress: Be the Refuge of Strength

2:00 PM — 2:45 PM

ROCKET PRO TPO MAIN STAGE

SESSION A

Mortgage brokers across the nation are helping their clients achieve the American dream of homeownership and refi to historically low rates during a challenging start to 2020.

Join Austin Niemec, Executive Vice President overseeing wholesale at Rocket Pro TPO, as he addresses ways

CONCURRENT SESSIONS

The New Non-QM: How It Works For You

ROCKET PRO TPO MAIN STAGE PRESENTED BY Eric Morgenson Alternative lending is a critical, but changing, segment of the mortgage industry. With so many potential borrowers needing to look beyond

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

29

Jacob Therrien

Kris-Ann Carduff

SATURDAY, AUGUST 21

3:00 PM — 3:45 PM

conventional products, it’s imperative to get involved today.

SESSION A

CONTINUED

SESSION B

Adapt to Overcome: Leveraging Technology to Grow Your Business in the New Reality CELEBRITY 5

PRESENTED BY Jacob Therrien While the pandemic continues to affect many aspects of the industry, one area that companies continue to struggle with is how to keep their employees connected when forced to work remotely. The need for easy, remote access to documents, and client and deal information has become more important than ever before.

During this informative session, you will learn about the only applicationto-closing Loan Management System designed specifically for real estate professionals that are originating hard money loans.

SESSION C

Why Do Borrowers Choose Brokers Over Other Originators?

MELROSE 3 & 4

PRESENTED BY Kris-Ann Carduff We commissioned Hamline University to research why borrowers choose mortgage brokers over other lenders.

We're sharing the data analytics and recommendations that you can leverage to increase business and customer loyalty. Join us! Presented

by Kris-Ann Carduff, SVP Marketing at AmeriSave Wholesale Mortgage Solutions

30

Ryan Grant

CONCURRENT SESSIONS

Become the Most Valuable Person In Your Clients' Life, And Why It's Necessary For the Future of Your Business

ROCKET PRO TPO MAIN STAGE PRESENTED BY Ryan Grant Today's Mortgage Originator has to stand out and be quantifiably more valuable to their clients. If you were asked "Why You" and you couldn't say Rate, Speed, Customer Service, Certainty of Closing or Experience, what would you say? In this session, you will learn how to actually become the most valuable person in your clients lives, when it comes to real estate and finance.

SESSION B

From Search to Sold: The Modern Client Journey MELROSE 3 & 4

PRESENTED BY Podium Podium will be discussing how to win clients and build loyalty while client expectations rapidly increase. Discover the impact local search rankings, reviews, and seamless digital tools have on creating a positive experience for your clientele from search to sold.

SESSION C

A Successful Lender Is A Changing Lender CELEBRITY 5

PRESENTED BY A&D Mortgage How to change and meet needs of brokers, borrowers, and the housing community. What do lenders and brokers have in common? The necessity to change to succeed on the market today.

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

4:00 PM — 4:45 PM KEYNOTE SESSION

The Focused Path to Being the Best ROCKET PRO TPO MAIN STAGE After starting his business in possibly the worst year for financial markets i.e. 2008, Shashank Shekhar has grown his company Arcus Lending by 1000%+ just in last 3 years by helping thousands of families secure better financing for their homes. This dramatic growth has been built on the pillars of legendary customer service and unrelenting focus on education.

Shashank lives and breathes the mantra, “We are in the customer service and education business, we just happen to do mortgages.”

An Amazon.com #1 best-selling author and international speaker, Shashank is widely regarded as “America’s Premier Mortgage Expert.” He is the host of the TV and radio show “Mortgage Matters,” and author of widely acclaimed books – “First Time Home Buying 101”, “Real Estate Unleashed“ and his latest #1 best-seller “My First Home”.

Besides writing one of the top mortgage blogs in the country, Shashank also gets invited to blog on several of the top mortgage and real estate websites. He has been featured on Yahoo! News, FOX, Washington Post, Bankrate.com, Huffington Post and several other media for his expertise.

5:00 PM — 6:00 PM Closing Cocktail Reception with Exhibitors

EXHIBIT HALL Celebrate the conclusion of Originator Connect 2020 with a cocktail reception with the exhibitors.

Due to social distancing requirements, the number of attendees in the exhibit hall at any one time may not exceed 250 people. Attendees will be admitted as space permits, so we suggest arriving early.

SUNDAY, AUGUST 22 9:00 AM — 5:00 PM

8 Hour NMLS Renewal Course Optional — Must Pre-Register ROCKET PRO TPO MAIN STAGE Fulfill your complete federal 8 hour continuing education requirements for your NMLS license renewal, for FREE! This is a separately-ticketed bonus offering. Make the most of your time this year by getting all your federallyrequired CE at the expo, in addition to a conference full of networking, education, opportunities and prizes.

Continuing Education course provided by Mortgage Educators & Compliance.

IMPORTANT: In addition to preregistration, in order to qualify for admission to the free NMLS License Renewal Class, you must have attended the expo and had your Exhibit Hall passport marked by all exhibitors. Only one Exhibit Hall passport given per person.

Important Note: You must take the entire 8 hour class to qualify for credit.

We cannot give partial credit.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

31

COVER STORY

It’s A Cool, Cool Summer There’s little but good data across the mortgage climate.

BY DAVID LUNA | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

T

he news has been nothing but full of how hot this summer’s been.

But they’re only looking at temperatures. When you look at the mortgage industry, what you see is that so far it’s been a cool, cool summer.

After the year we have all been through, we are ready for some positive news. The question is, when are we fully moving from the refi boom to a purchase boom. This will happen. Let me be clearer, this WILL HAPPEN in short order. Housing starts for March were at an approximate annual rate of 1.7 million units which is 37 percent above the March 2020 rate according to HUD. The economy will continue to recover, rates will go lower, and the inventory issue will be resolved. It is going to be a promising next couple months which is going to lead into an even better fall … here is why.

INVENTORY Demand is gone from warm to scorching hot across the country. Having a home with 5, 10 or even 15 offers above the asking price is now the new norm. Competition has become fierce, with thousands of borrowers wondering if they are going to land a home or not. My prediction is they will. Builders are incredibly positive on what they do best … BUILDING. The National Association of Home Builders’ Housing Market Index sentiment numbers show an overwhelming positive outlook.

My father was a builder and I worked with him for years. In Southern California where I was raised, my dad encouraged me to consider purchasing a new home.

These houses started around an astronomical amount of money for me at the time, $59,000. The median home price in that same area of Westlake Village today is $1.3 million. Just how I missed out, there is a feeling from borrowers that they will miss out. Let me tell you, that is not the case for most buyers.

32

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

More new homes need to be built and the rate of building is just going to continue to increase.

Remember the half-finished subdivisions from 2007-2008? Builders lost a lot, so it has taken a while to build the momentum needed to meet the demand. Trying to make up a twelve-year deficit is not going to be done overnight. The housing starts have already begun trying to play catch up.

This momentum will continue for the next couple of years, but things are going to start catching up this summer!

MORTGAGE AFFORDABILITY

As we begin to open back up and overcome this scourge one vaccine at a time, the mortgage industry is going to become a vital means to help the new normal come back.

Interest rates will continue to be at historic lows and in the next couple of months will go even lower.

There has been a knee-jerk reaction to the market which will stabilize over the next few months. Are we really going to see an increase in inventory and rates stabilizing? I passionately believe we are. The reverberating impact occurring on the building and supply chain is significant, but it is temporary.

If rates are at historical lows, demand is at historic highs, and borrowers are now better qualified, what is the problem? The answer is regulations and the Covid-19 pandemic. A recent study by the National Association of Home Builders found that regulations imposed by all levels of government on new homes account for about $94,000 -- or 24% -- of the cost.

Regulations are going to be a factor in the increased cost on homes, and that is only going to continue to grow.

Luckily, there is help on the way with down payment assistance programs. The Downpayment Toward Equity Act of 2021 is developing as we speak. This is going to be a game changer for first generation home buyers or parents who lost a home to foreclosure and who currently do not own a home.

A $25,000 grant, meaning they will not have to pay it back, is gaining more traction in Congress. It also includes those that are considered “socially and economically disadvantaged.” If more homebuyers can qualify with this refundable tax credit by the end of the year, we are going to be looking solid once inventory catches up.

CORONAVIRUS Covid: The elephant that has been in the room for the past year. The pandemic has clearly impacted the very fabric of our society. It is reached our wonderful industry and affected a wide range of aspects.

Do this for me, go down to your local building supply store and check what the cost is for a sheet of plywood. Be prepared to pay over 7x the cost from just a few months ago! The cost of lumber

CONTINUED ON PAGE 34

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

33

COOL SUMMER CONTINUED FROM PAGE 33

has increased 300% since April 2020, according to National Association of Home Builders estimates. Framing lumber has hit an all-time high of $1,300 per thousand board feet. Building new homes and renovating existing homes are now costing much more.

The impact has been most noticeable in the transportation of delivering the materials, building supplies including cabinets, the construction services industry and home upgrades such as appliances. Covid has caused major delays, unemployment, and limited quantities of the materials.

Cruise through your favorite fastfood restaurant and you will find limited quantities on your sauce of choice. No, I am serious: the sauce ratio on some major chains is limiting one sauce per entry and two per meal. Supply chain shortages are springing up across an array of industries. Is there a shortage on the supply of mortgage lending?

Absolutely not, but by default the mortgage and housing industries are intertwined. We are feeling the same pandemic related pains and heartaches.

I have had to ask myself, what have we learned during these trying times?

Well personally, I have learned that people still want a home now more than ever. As we begin to open back up and overcome this scourge one vaccine at a time, the mortgage industry is going to become a vital means to help the new normal come back. The phenomenon of homeownership is now in the forefront of the minds of the American people. As suburbs expand and affordable housing locations continue to grow across the country, it gives me a sincere level of optimism that the mortgage industry is going to be better than ever.

THE ECONOMY The economy is doing much, much better. Quarter 1 of 2021 was a breath of fresh air with a 6.4 percent growth

34

rate making it the best quarter of GDP growth since 2003! The biggest part of our economy, personal consumption, surged by an annualized rate of 10.7 percent, the second fastest since the 1960’s. The rush of consumer spending will continue to boost the total output past pre-pandemic levels, in my opinion. At the end of July, the Dow hit an all-time high. People want to get out and spend the money they have saved over the course of the last year.

Low unemployment causes inflation.

I learned this a long time ago. When people have money and want something they will pay more for it. The Federal Open Market Committee (FOMC) meets about eight times per year to discuss economic conditions. This committee determines whether to hike or lower the Fed Fund Rates. Funds rates are still between 0 and 1/4. It is important to note that FOMC does not control or move mortgage rates. It is more about understanding the economic impact and how those elements can influence mortgage rates. The more important part to understand is inflation.

Is inflation real? Well yes, it is, if we do not solve the Covid-19 crisis or repair the supply chain, then it is going to be a problem. I do not think inflation is going to be a big issue as the economy continues to improve.

NO BUST We are not in a housing bubble. The fear of a similar bubble bursting from what we experienced back in 20072008 will not be realized. Here is why: The credit scores, education level, types of job and income of today’s borrowers have been much different than in the past. Foreclosures and forbearance issues are not the same either, because of the equity in the home. Redfin Chief Economist Daryl Fairweather was recently quoted, “Affluent homebuyers from New York and San Francisco have

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

moved to places like Florida and Texas during the pandemic, which has fueled home sales and driven up prices in those areas.” Dr. Lawrence Yun, Chief Economist of the National Association of Realtors agrees. He said, “This is not a bubble. It is simply lack of supply.”

The cool, cool summer we are going through has some “magic.” Dr. Elliot Eisenberg, an international acclaimed economist and public speaker stated, “low rates, low existing supply and a booming stock market can create some magic!” It took more than three years for the GDP to fully recover from our last recession. With these much better contributing factors it is not going to be nearly as long. GDP growth is on track to be the best rate since 1984.

Home prices across the country have reached an average of $344,625, according to a recent Redfin report. The year 2020 is over, while 2021 is the light at the end of the long dark tunnel we have all needed. Freddie Mac reported net income of $2.8 billion for first quarter 2021, which is a particularly good indicator. Production estimates are another signal that things are improving. The Mortgage Bankers Association of America is estimating $3.3 trillion for 2021. Freddie Mac sees it at $3.5 trillion, while Fannie Mae is estimating over $4 trillion.

Put on your sunglasses but please, please do not relax. I instruct thousands upon thousands of mortgage professionals every year. I’ve heard the concerns and doubt -- but let me tell you this: this summer is going to continue to be even busier, more exciting and will end up being a really cool, cool summer.

David Luna is a former state banking commissioner in Utah. He is president of Mortgage Educators & Compliance.

"RealFi has perfected a system that seamlessly transitions mortgage brokers, mortgage bankers, branch managers, and top producers into our P&L retail branch platform."

Looking for stability & growth opportunities?

Join our team of experienced professionals.

RHFBranch.com

Anthony Pepe SVP, Branch Development 866.319.4442

RealFi Home Funding info@rhbranch.com

NMLS# 34973

Licensed in: AL, CO, CT, DC, DE, FL, GA , KY, MD, NC, NJ, NY, PA, SC, TN, TX, VA NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

35

GREAT EVENTS START AT AMBIZ MEDIA LIVE, IN PERSON 2021 SHOWS

MAY 5

Mid South Mortgage Expo Memphis, TN

36

MAY 11

Motor City Mortgage Expo Detroit, MI

MAY 18

JUNE

Texas 10-11 Mortgage New England Roundup / SA Mortgage San Antonio, Expo TX Mohegan Sun, CT

JUNE 15

Great Northwest Mortgage Expo Portland, OR

JUNE 22 Chicago Mortgage Originators Expo Chicago, IL

JULY 6

Ultimate Mortgage Expo New Orleans, LA

JULY 13

Carolinas Connect Mortgage Expo Charlotte, NC

36 ORIGINATOR CONNECT MAGAZINE | SUMMER 2019 36 MORTGAGE BANKER | JANUARY 2021 www.mortgageconferences.com

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

JULY 22

Arizona Mortgage Expo Phoenix, AZ

AUG 3

NY Mortgage Expo Suffern, NY

AUG 12

CA Mortgage Expo San Diego, CA

The Originator Connect Network is the nation’s largest coalition of mortgage conferences, reaching more mortgage originators in person than any other organization. Coast to coast, we offer many opportunities for companies to reach the front-line sales and origination professionals critical to you success.

There’s nothing quite like standing faceto-face with potential new clients. At American Business Media, we produce some of the most successful and largest business-to-business conferences and trade shows in the nation.

Visit www.mortgageconferences.com for a full listing of our shows and links to register your company as a sponsor, exhibitor or attendee.

SUN O OAST M O R TG AG E E X P O

AUG 20-22

Originator Connect Las Vegas, NV

SEPT 2

Texas Mortgage Roundup Dallas, TX

SEPT 9 CA Mortgage Expo North Glendale, CA

SEPT 14 Great Northwest Mortgage Expo Seattle, WA

OCT 7

Colorado Mortgage Summit Denver, CO

OCT 12

CA Mortgage Expo San Francisco, CA

OCT 19

Suncoast Mortgage Expo Tampa, FL

NOV 4

Utah Mortgage Expo Park City, UT

www.mortgageconferences.com

NOV 18

Texas Mortgage Roundup Houston, TX

DEC 8

OCN California Mortgage Holiday Party Irvine, CA

DEC 9

CA Mortgage Expo Irvine, CA

Jun-21

Month-overmonth change

Year-over-year change

4.37%

-7.62%

-42.39%

0.27%

-1.73%

-24.23%

4,400

15.79%

-25.42%

Monthly Prepayment Rate (SMM):

2.28%

6.23%

-14.11%

Foreclosure Sales as % of 90+:

0.12%

0.39%

160.52%

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure):​ Total U.S. foreclosure pre-sale inventory rate:​ Total U.S. foreclosure starts:

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure):​ Total U.S. foreclosure pre-sale inventory rate:​

Number of properties that are 30 or more days past due, but not in foreclosure:​

Total U.S. foreclosure starts:

2,320,000 1,550,000

-119,000

Louisiana

7.40%

-36.81%

Hawaii

6.46%

-37.16%

Oklahoma

6.24%

West Virginia

6.11%

2,320,000

-191,000

-1,714,000

-119,000

● Peak

-193,000

-1,760,000

● Date of Peak

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure):​

23.24%

30.43% 13.04%

Oct-05

Total U.S. foreclosure pre-sale inventory rate:​ Total U.S. foreclosure starts:

Oct-05

Washington

2.80%

-41.99%

0.39%

Feb-10

14.54%

Jan-10

● Peak

● Date of Peak

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure):​

-49.79% -44.98%

Top 5 States by 90+ Days Delinquent Percentage 90+ Delinquency % 2005-Current Jun-21 Y/Y Change

Louisiana

4.59%

-14.63% -13.84%

Hawaii

4.14%

-4.51%

Nevada

4.14%

-15.47%

Maryland

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

4.08%

-7.42%

9.55%

160.52%

6.23% 5.99%

1.41%

-26.37%

10.94%

-25.42%

Feb-10

Total U.S. foreclosure pre-sale inventory rate:​

Feb-10

145,000

-191,000

4.63% -3,000

Jun-21

4.37%

-1,760,000

Foreclosure Sales as % of 90+:

0.12%

-42.39%

2.19%

Jan-12

0.39%

160.52%

1.67%

Confidential, Proprietary and/or Trade Secret

8.54% Feb-10 Number of properties in foreclosure pre-sale inventory:​

1,550,000

Number of properties that are 30 or more days past due or in foreclosure:​

2,466,000

10.59%

Jan-10

● Peak

● Date of Peak

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure):​

10.18%

13.30% 6.04%

Dec-05

Total U.S. foreclosure pre-sale inventory rate:​ Total U.S. foreclosure starts:

Dec-05

145,000

0.27% 4,400

-1,760,000

-42.39%

-25.42%

160.52%

2.28%

6.23% 1.19%

0.12%

0.39%

Aug-20

0.13%

2,320,000

10.05% Feb-10 Number of properties in foreclosure pre-sale inventory:​

1,550,000

Number of properties that are 30 or more days past due or in foreclosure:​

2,466,000

Feb-10

145,000

-24.23%

15.79%

Foreclosure Sales as % of 90+:

-191,000

0.34% -3,000

-14.11%

-1,714,000

-119,000

-324,000

-193,000

-1,760,000

0.58%

Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, or an affiliate. © 2021 Black Knight Data Analytics, LLC. All Rights Reserv ed.

Page 1 of 1

Jan-20

● Date of Low

Year-over-year change

-7.62%

Monthly Prepayment Rate (SMM):

Jan-20 Jan-20

-47,000

Month-overmonth change

1.14% -1.73%

Number of properties that are 90 or more days past due, but not in foreclosure:​

5.85%

-193,000

1.63% -3,000

Number of properties that are 30 or more days past due, but not in foreclosure:​

-1,714,000 -324,000

● Low

4.37%

Jan-20

-119,000

1.79%

Jun-21

-25.42% -14.11%

© 2021 Black Knight Data Analytics, LLC. All Rights Reserv ed.

12 Month Trend

Jan-20

-24.23%

6.23%

Number of properties that are 30 or more days past due, but® Trademark(s) not in foreclosure:​ -191,000 TM SM of Black Knight IP 2,320,000 Holding Company, LLC, or an affiliate.

Mar-00

● Date of Low

Year-over-year change

15.79%

Number of properties that are 90 or more days past due, but not in foreclosure:​

-47,000

-7.62%

-1.73% 2.13%

Mar-06 Mar-00

-193,000

Month-overmonth change

4,400 2.28%

-1,714,000 -324,000

● Low

0.27%

Monthly Prepayment Rate (SMM):

Mar-00

-14.11%

-119,000

4.75%

12 Month Trend

Mar-00

-24.23%

15.79%

0.12%

2,466,000

-49.16%

-42.39%

2.28%

11.21% Jan-10 Number of properties in foreclosure pre-sale inventory:​

2.84%

Year-over-year change

-7.62%

Foreclosure Sales as % of 90+:

Number of properties that are 30 or more days past due or in foreclosure:​

Utah

4.89%

4,400

● Date of Low

Month-overmonth change

5.56% -1.73%

0.27%

-24.32%

7.50%

-47,000 -1,760,000

● Low

4.37%

-324,000

-3,000 -193,000

Monthly Prepayment Rate (SMM):

Total U.S. foreclosure starts:

Mississippi

Jun-21

1,550,000

-38.92%

2.40%

145,000

2,466,000

2,320,000

3.09%

Idaho

38

-3,000

Number of properties in foreclosure pre-sale inventory:​

2,466,000

-25.42%

1,550,000 -47,000

0.12%

Number of properties that are 90 or more days past due, but not in foreclosure:​

Montana

2.75%

-24.23%

15.79%

Number of properties that are 30 or more days past due, but not in foreclosure:​

Bottom 5 States by Non-Current Percentage Non-Curr % 2005-Current Jun-21 Y/Y Change

Colorado

-1.73%

4,400

-14.11%

Number of properties that are 30 or more days past due or in foreclosure:​

-36.01%

0.27%

12 Month Trend

-324,000

Number of properties that are 30 or more days past due or in foreclosure:​

7.97%

-42.39%

160.52%

Number of properties that are 90 or more days past due, but not in foreclosure:​

Mississippi

Year-over-year change

-7.62%

0.39%

Number of properties that are 30 or more days past due, but not in foreclosure:​

Top 5 States by Non-Current Percentage Non-Curr % 2005-Current Jun-21 Y/Y Change

Month-overmonth change

4.37%

6.23%

Number of properties in foreclosure pre-sale inventory:​

145,000

Jun-21

-191,000 -1,714,000 Monthly Prepayment Rate (SMM): 2.28% Foreclosure Sales as % of 90+:

Number of properties that are 90 or more days past due, but not in foreclosure:​

12 Month Trend

-47,000

12 Month Trend

May-00 May-00 Jun-06 Mar-06 Jun-06 Page 1 of 1

DATABANK

Top 5 States by 6-Month Improvement in Non-Current Percentage Non-Curr % Change in 2005-Current Non-Curr % Jun-21 ● Peak Arizona

-31.53%

Rhode Island

3.54%

-31.45%

● Date of Peak

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure):​

17.03%

5.02%

Jan-10

Total U.S. foreclosure pre-sale inventory rate:​ Total U.S. foreclosure starts:

15.31%

Jan-10

5.26% 5.19%

Number of properties that are 30 or more days past due or in foreclosure:​

Vermont

-19.91%

5.78%

15.65%

Feb-10

25.35%

Jan-10

Number of properties that are 30 or more days past due, but not in foreclosure:​

Number of properties in foreclosure pre-sale inventory:​

16.81%

Dec-12

-19.92%

5.07%

● Date of Peak

Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure):​

Jan-10

District of Columbia

-20.49%

North Dakota

4.44%

-21.65%

2,320,000 1,550,000 145,000 2,466,000

160.52%

-3,000

-47,000 -1,760,000

Mar-06

-42.39%

Foreclosure Sales as % of 90+:

0.12%

-1.73% 2.29%

0.27% 4,400

15.79%

2.38%

2,320,000

Number of properties that are 90 or more days past due, but not in foreclosure:​

10.43% Feb-10 Number of properties in foreclosure pre-sale inventory:​

1,550,000

Number of properties that are 30 or more days past due or in foreclosure:​

2,466,000

Jun-20

May-05

-324,000

-193,000

3.44%

Dec-04

-1,714,000

Year-over-year change

9.55%

5.35%

3.47%

-119,000

-7.62%

2.28%

Jan-10

-191,000

Month-overmonth change

Monthly Prepayment Rate (SMM):

8.16%

1.53%

Mar-05

-14.11%

● Low

Number of properties that are 30 or more days past due, but not in foreclosure:​

3.71%

-25.42%

145,000

● Date of Low

0.39%

160.52%

-191,000

-1,714,000

-119,000

-324,000

-193,000

-1,760,000

2.01%

Apr-18

-25.42% -14.11%

2.35% -3,000

12 Month Trend

-24.23%

6.23%

2.41%

12 Month Trend

Mar-06

-24.23%

15.79%

4.37%

Total U.S. foreclosure pre-sale inventory rate:​

Dec-12

● Date of Low

Jun-21

9.33%

Total U.S. foreclosure starts:

Nebraska

4,400

0.39%

-31.10%

4.15%

2.07% -1.73%

0.27%

6.23% 2.55%

Florida

-19.90%

-42.39%

0.12%

Number of properties that are 90 or more days past due, but not in foreclosure:​

Minnesota

Year-over-year change

-7.62%

2.28%

3.22%

Top 5 States by 6-Month Deterioration in Non-Current Percentage Non-Curr % Change in 2005-Current Non-Curr % Jun-21 ● Peak

Month-overmonth change

Foreclosure Sales as % of 90+:

-31.24%

-30.93%

● Low

4.37%

Monthly Prepayment Rate (SMM):

California

New Jersey

Jun-21

-47,000

Apr-04 Mar-00 Jan-20 Mar-16

Twelve‐Month Price Changes – Prior Year vs. Most Recent Year Purchase‐Only FHFA HPI (Seasonally Adjusted, Nominal)

Price Change: 04/2019 ‐ 04/2020 22.0%

Price Change: 04/2020 ‐ 04/2021

20.6%

Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, or an affiliate. © 2021 Black Knight Data Analytics, LLC. All Rights Reserv ed.

20.0% 17.6%

18.0%

16.3%

15.7%

16.0%

Page 1 of 1

18.0%

14.0%

14.1%

13.2%

13.0%

16.0%

14.8%

12.0% 10.0% 8.0%

7.3% 5.9%

6.0%

6.2%

5.5%

5.5%

6.1%

6.1%

Confidential, Proprietary and/or Trade Secret TM SM ® Trademark(s) of Black Knight IP Holding Company, LLC, or an affiliate. © 2021 Black Knight Data Analytics, LLC. All Rights Reserv ed.

5.9%

5.3%

5.8%

Page 1 of 1

4.0% 2.0% 0.0%

U.S.

SOURCE: FHHA

Pacific

Mountain West North West South East North Central Central Central

East South New England Central

Middle Atlantic

South Atlantic

Source: FHFA

-3-

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

39

NON QM Showcase Angel Oak Mortgage

Solutions Atlanta, GA http://www.angeloakms.com Angel Oak Mortgage Solutions is the leader in the non-QM mortgage space. We offer alternative specialized mortgage solutions for brokers throughout the country helping borrowers who don’t fit conventional guidelines. Our innovative non-QM products include: Bank Statement, Platinum Jumbo, No Income Investor Cash Flow, "Just Missed" Portfolio Select and Asset Qualifier. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.

FundLoans

Encinitas, California http://www.fundloans.com Insignia is our Jumbo Prime program. Apex Prime is meant to meet the needs of your alternative doc borrowers with a focus on self-employed borrowers. Montage Prime is great for your near miss prime borrower. Spectrum Prime is the perfect tool for your seasoned investor borrowers.

We focus on jumbo and super jumbo loans.

Arizona, California, Colorado, Florida, Georgia, Wyoming, Connecticut, Hawaii, Idaho, Illinois, Montana, Nevada, Washington, North Carolina, South Carolina, Oregon, Texas, Utah, Tennessee

LoanStream Mortgage

Luxury Mortgage Corp

Irvine, CA www.LoanStreamWholesale.com

Stamford, CT http://www. luxurymortgagewholesale.com

Full Doc / Alt Doc

The Simple Access® NonQM suite of products was built around the idea that it doesn’t have to be complicated to finance a home. We have created a diverse selection of borrower friendly programs that are simple, innovative and flexible.

ITIN DSCR Bank Statement Fixed, ARM, and Interest Only Programs High LTVs and Lower FICOs Business Owners, Investors Licensing - LoanStream (lsmortgage.com)

Visit https://angeloakms.com/ programs/ for details on our products that can help you grow your business.

NATIONWIDE except: AK HI ID MA MO NY VT

Investor Cash Flow Qualification based on income generated by the subject property Bank Statement Qualification based on business or personal bank statements Asset Qualifier Eligibility based on a borrower’s liquid assets Full Doc Excellent pricing for scenarios just outside conventional guidelines 1099 Only AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, IL (no IO loans), MA, MD, ME, MI, NH, NC, NJ, NM, NY (no subprime), OH, OR, PA, RI, SC, TN, TX, UT, VA, WA, WI Properties

40

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Oaktree Funding Corp.

Temple View Capital

Chandler, AZ www.oaktreewholesale.com

Bethesda, Maryland https://www.templeviewcap.com/

Non-Agency & Investor AdvantageThe Non-QM experts Oaktree Funding are proud to offer innovative solutions for diverse borrowers. We offer products and services through our three channels of operation: Wholesale, Correspondent and Retail Lending. Oaktree is not tied to any one investor securitization.

Our business purpose loan products, Fix & Flip, Fix & Hold, Bridge and Long-Term Rental Investments for single-family, 14 units, Condos, Townhomes.

Our Rehab Loans & Bridge allow for the monthly Payments to be Rolled into the Loan.

With our Long-term rental, we offer 30 Year Fixed, ARM and Interest-Only. The borrower is LLCs, LPs, and Corporations.

12 Month bank statements at 90% LTV Price match guarantee to any NonQM competitor* <75% LTV bank statement rank same as full doc.

New streamline submission portal – point, click, submit 4 Or more expert associates dedicated to your file $3.0M up to 80% LTV *Price Match guaranty to include our NonAgency Advantage and Investor Advantage Products Only. We will match up to 100BPS in price or 50BPS in rate. See your Account Executive for details. Subject to change without notice for any reason.

AZ | CA | CO | CT | DC | FL | GA | ID | IL | IN | MD | MA | MI | MN | MO | NJ | NM | NV | NC | OH | OR | PA | SC | TN | TX | UT | VA | WA | WI

We are a nationwide lender

DIRECTORY

Calyx

Global DMS

www.calyxsoftware.com Dallas, TX & San Jose, CA

http://www.globaldms.com Lansdale, PA

We offer mortgage origination technology for small to enterprise level organizations.

Finicity a Mastercard company

ReadyPrice

Global DMS offers the most advanced appraisal technology on the market called EVO™, engineered and designed for both commercial and residential appraisal business. With a purposeful departure from outdated processes of older platforms, EVO combines 100% configurability, boasts the most userfriendly navigation possible, a userrole based workflow, the easiest to use reporting engine, as well as the only true cascading decision tool.

http://www.readyprice.com San Jose, CA

ReadyPrice, powered by SitusAMC, is a leading mortgage technology connecting mortgage loan originators and lenders to support more efficient loan origination.

Their technology enables MLOs to manage and choose pricing, run automated underwriting, and deliver approved loans to lenders at no cost to the MLO. For lenders, ReadyPrice provides an efficient way to scale their businesses, ensuring wholesale lending rates are included in every pricing engine search while providing brokers with the easiest path to directly transfer DU approved loans.

http://Finicity.com Salt Lake City, Utah

Finicity's Mortgage Verification Service is the one-touch, GSE-accepted digital verification of assets, income and employment. MVS leverages Finicity's open banking platform so lenders can use the best data from the best sources in the best way to deliver a winning lending experience for their customers and business stakeholders. Finicity also provides account validation services to mitigate payment risk, as well as the use of transactions, account history and statements direct from FIs that can be used for loan servicing or other needs.

ReadyPrice technologies support FNMA, FRE, FHA, VA, USDA, VA, and nonagency (non-QM, jumbo, etc.) loan originations.

Mortech a Zillow Group business https://www.mortech.com/ Lincoln, NE

As a pioneer in the digital mortgage era, Mortech provides mortgage professionals with a number of services and tools including Product Pricing, Online Rate Quoting, and Secondary Marketing solutions to help automate their workflow, giving them more time to focus on business growth.

Product offerings: • Instant pricing from multiple investors at the touch of a button.

• Streamlined secondary desk with tools such as historical pricing, centralized lock desk, and more.

• Quote live mortgage offers to a broader audience with access to the largest portfolio of mortgage marketplaces.

• Ability to re-capture current customers and gain new purchase leads with predictive analytics

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

41

Greg Gadson

I AM A VETERAN AND THIS IS MY VICTORY.

“My victory is proving that nothing can hold me back.”

While serving in Iraq, an explosion took both of Greg’s legs. But it didn’t touch his spirit. Today, Greg is an entrepreneur, photographer and public speaker. DAV helps veterans of every generation get the benefits they’ve earned—helping more than a million veterans each year.

Support more victories for veterans®. Go to DAV.org.

Your One-Stop Shop For Mortgage Training and Superior Marketing Content Download FREE The 2019 Book of Home Finance at www.originationpro.com 200+ pages packed with the information needed to succeed in this industry.

www.OriginationPro.com l success@hershmangroup.com

1-800-581-5678 42

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

SPONSORED EDITORIAL

“WE’VE ADDED TREMENDOUS TALENT ACROSS THE BOARD”: INSIDE ACRA LENDING’S HUGE RECRUITMENT DRIVE

A

s part of its ongoing recruitment drive, Acra Lending is as determined as ever to keep growing and sourcing top talent – and, as revealed by Keith Lind, Executive Chairman and President – it also has a somewhat unique cornerstone ideal behind the process.

“You should always hire people smarter than you,” Lind says, before reflecting on how surprising the idea sounds. “I think initially people were always threatened and worried by that notion.

“But if you can get past that initial reaction, they’ll actually agree with me. It’s the right thing to do because, of course, hiring smart and talented people with good reputations makes recruiting easier. People that your employees worked with in the past now want to join up as well. My style of hiring the best and the brightest minds has only made us better and it’s only made us more efficient.”

Issues like these have been top of Lind’s priority list over the past year, as Acra’s recruitment drive gathered apace – seeing them rebound from the dark days of the pandemic with inspiring vision and determination.

In today’s mortgage banking industry, you have a choice: you can play “follow the leader” or you can be a leader ...

Lykken on Lending

With a 43-year career in mortgage lending, David Lykken is one of the most respected business leaders in the industry. He created Lykken on Lending in 2009 to offer his mortgage industry professionals an insider’s view of the trends, issues and personalities that impact mortgage banking and the wider economy.

Created by a mortgage professional for mortgage professionals, Lykken on veteran Lending is a weekly 60-minute radio program hosted by mortgage veteran, David Lykken. Joining the program each week is Joe Farr with a MARKET UPDATE, Alice Alvey providing a LEGISLATIVE UPDATE and Andy Schell (a/k/a "The Profit Doctor") providing tips on FINANCIAL MANAGEMENT along with other regulars and featured guests.

Lykken on Lending brings forth the major players in mortgage banking for provocative and insightful conversation. This is the only mortgage banking indust leaders speak directly without being edited or media outlet where industry filtered by agenda-driven third parties.

Covering Topics from Main Street to Wall Street and Capitol Hill

Listen LIVE Coast to Coast Mondays at 1:00pm Eastern/10:00am Pacific, or dial in and listen at (646) 716-4972 or (877) 666-9318 Download the Podcasts of Previous episodes any time at David Lykken

“From starting the business back up again that August, I’m very proud to say we’re already up from 160 people back then to almost 320 people today. Not only did we hire back a lot of the people that we laid off or furloughed, but we’ve added tremendous talent across the board, across all facets of the firm.”

It’s a remarkable achievement – and it’s clear that Lind’s leadership style makes up much of the driving force behind it.

“I use the mindset of empowering all of my managers and all of my leaders at the firm to make decisions and to think together and to think as a group. I want my leaders to brainstorm, make decisions, think outside the box. I think that’s been very advantageous and driven a new sense of a stronger culture – whether that’s with new managers that I’ve hired, a new head of human resources, new chief revenue officer, new head of correspondent, new underwriters, new account managers and so on.”

Lind is also quick to point out that Acra is always on the lookout for new talent – and the team potential employees would be joining is second-to-none.

“We have the best human resources department,” he enthuses.

“They’re just tirelessly working on getting stuff done. And we partner with great recruiters. Recruiters are bringing their best talent to us because they know they’re going to be treated fairly and taken care of.”

“We’re at 320 people today. By this time next year, my goal is to be at 450. It could even be higher than that. Our production is ramping up. We’re rolling out new products and we are adding talented people every day. I don’t think there’s any stopping from our perspective.”

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.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

43

NON - QM LENDING SOLUT IONS FOR

TODAY’S BORROWER SELF-EMPLOYED

∙ INVESTORS ∙ FOREIGN NATIONALS

Programs Built for Self-Employed, Investor, & Foreign National Borrowers ATR-in-Full

3 mo Bank Statement

Investor Cash Flow

Qualify with enough liquid assets to cover the loan balance

Qualify with most recent personal or business account’s bank statements

Available on SFRs, 2-4 Units, Condos, Townhomes, Condotels, and NonWarrantable Condos

Foreign National

ITIN

Interest Only

Letter of good standing with current financial institution or international credit report

Individual Taxpayer Identification Number Valid U.S. Government issued ID

Self-Employed O/O, N/O/O, and 2nd Homes

Jumbo Non-QM

Jumbo Prime

12mo or 24mo Bank Statement

Loan amounts up to $4M Qualify with Full Doc or Bank Statements

Residential Loan amounts to $3 Million Up to $1.5M for 2nd Homes & Investment Properties

Qualify with 100% on personal account deposits and 50% on business deposits

Call Us Today to Learn More!

(888) 800-7661 sales@acralending.com | www.acralending.com 25531 Commercentre Drive, Suite 160, Lake Forest CA 92630

44

Acra Lending is a dba of Citadel Servicing Corporation NMLS ID# 144549, Licensed under Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act license #41DBO-74196, Finance Lenders License # 60DB094450, and CA-DRE #01799059. For mortgage professionals only. This information is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations. Distribution to the general public is prohibited. Acra Lending is an equal opportunity lender. Rates, terms, and programs subject to change without notice. Offer of credit subject to credit approval per applicable underwriting and program guidelines, applicant eligibility, and market conditions. Not all applicants may qualify. Not valid in the |following NATIONAL MORTGAGE PROFESSIONAL MAGAZINE states: AK, HI, IA, MA, MS, MO, NM, NY, ND, OH, RI, SD, and WV.

Americans who use social media1

Why you can’t afford to opt out of social media

Age 18-29: 90% Age 30-49: 82% In 2019 people spent 2 hours and 24 minutes on social media every day, across devices2

It’s where your customers already are – and it can give you a competitive edge.

60% of people say they’ve

watched a video on Facebook, Twitter, Snapchat or Instagram in the last month2

NEED HELP? Find training and tools at mgic.com/SocialMediaCafe and shareable consumer content at readynest.com.

3.4K

2.2k Comments

190 Share

100K Views

Most popular social apps for mobile users in the US in 20193: Facebook Instagram Facebook Messenger Twitter Pinterest

91% 65% 57% 44% 36%

27% of internet users

say they find new products through paid social ads (following word-of-mouth, TV ads, and search engines)2

71% of consumers

who have had a good social media service experience with a brand are likely to recommend it to others4 3.4K

20-51405 3/20

2.2k Comments

Share

Pew Research 2GlobalWebIndex 3Statista 4Ambassador

1

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

45

Wholesaler Directory

Acra Lending Specialty/ Niche: Non-QM / Jumbo Acra Lending is the leader in Non-QM Wholesale and Correspondent lending programs. Offering a range of programs and services geared toward helping mortgage professionals and borrowers achieve their purchase and investment goals. We are committed to providing simplicity, consistency and an optimal customer experience.

ACC Mortgage Specialty/ Niche: Non-QM

Princeton Wholesale Specialty/Niche: The Effortless Mortgage

ACC Mortgage is the oldest Non-QM lender that has never stopped lending in 22 years.

We specialize in Bank Statement, ITIN, P&L, Foreign National and DSCR lending. Price, Product and Process are what make for NonQM success.

States Licensed in: AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, ME, MD, MI, MN, MT, NE, NV, NH, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY

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

Bio: Princeton Wholesale is headquartered in Pittsburgh, PA driven by the mission to show up every day and improve our mortgage process for our broker partners and their customers. We believe that customer loyalty is earned by providing a consistent, effortless experience and by doing the right thing, every time.

http://ACCMortgage.com

https://acralending.com/

States Licensed in: Alabama, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin http://princetonwholesale.com

Angel Oak Mortgage Solutions Specialty/ Niche: Non-QM, Non-Agency Angel Oak Mortgage Solutions is the leader in the non-QM mortgage space. We offer alternative specialized mortgage solutions for brokers throughout the country helping borrowers who don’t fit conventional guidelines. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.

First National bank of America Specialty/ Niche: Non- QM Bio: FNBA is a portfolio lender with over 65 years of experience. We understand that in the Non-QM business, service makes all the difference. That’s why we are committed to providing you with the fastest turn times, exceptional service and loan programs that make growing your business easy!

States Licensed in: All 50 States http://www.fnba.com/mortgage-brokers

States Licensed in: AL AK AZ AR CA CO CT DE FL GA HI IL IN IA KS KY LA ME MD MI MN MS MT NE NV NH NJ NM NC ND OH OK OR PA RI SC SD TN TX UT VA WA WV WI WY DC www.angeloakms.com

Money House On Demand is the US Division of The Money House, Inc., a Ginnie Mae Forward and Reverse Mortgage Issuer/ Servicer. The US Division combines a complete range of mortgage products with a unique seasoned and professional team of bi-lingual staff and resources supporting complete Wholesale and Correspondent Partner relationships.

Freedom Mortgage Specialty/ niche: VA and FHA

States: CA. CO, DC, FL, GA, IL, MD, OR, PR, TN, TX

As the #1 VA and FHA lender*, Freedom Mortgage Wholesale is dedicated to serving the needs of brokers, wholesale correspondents, banks and credit unions with a wide variety of products. Our local Account Executives, three Regional Operation Centers, and seasoned underwriters are committed to providing an unparalleled experience

http://www.moneyhouseus.com

*Inside Mortgage Finance, Jan-Jun 2020

States: all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands. www.freedomwholesale.com 46

The Money House, INC. Specialty/ niche: DIRECT HECM LENDER - GNMA ISSUER

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

MY BEST DEAL

A Fearsome Move For A Family Of Four Name: Randy Howell

|

Job Title: President

|

Business: Mortgage Power Inc.

What made it your best deal?

Arizona in the winter.

Borrower worked at an ice cream packing plant, but was laid off every winter for past three years. Borrower was on unemployment at time of application. I helped underwriting understand the pattern and got the borrower approved and closed on an FHA loan. It was pure satisfaction in helping one in need. I would have done the loan for free just to make this work.

How much was your best deal for?

Only $128,000 loan, but it was not the money, it was the act.

Borrower was a single mom of four, trying to purchase first home – on unemployment.

WIN a $100 Amazon gift card

living, but one can sleep so much better when we improve the lives of others. Borrower and all children appeared in my office the day of closing with a gift; they noticed I always wore a tie. They had bought me a new tie and a loving note of gratitude. I don’t care who you are – that kind of relationship is priceless!

What else?

This is how we distinguish ourselves from others. Helping our community to prosper. Sure, we all make a

Have a great story about your best deal? We’re not talking about your biggest deal. We want to hear about your best deal – the one that resonates with you personally, the one that became the story you’ve told again and again about why you’re in this business. Head over to bit.ly/MyBestDeal and tell us the details. You can win a $100 Amazon gift card if your story is selected for publication.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

47

We Have Mortgage Jobs.

Market Top, Bottom Most Active Prices of the most and least expensive U.S. homes are surging the fastest

• Branch Manager • Business Development Manager • Client Relationship Manager • Client Relationship Specialist • Collateral Asset Manager • Commercial Loan Officer • Credit Analyst • Licensing Assistant • Loan Officer • Loan Mitigation • Post Closing QC Expert • Loan Administration Manager • Processor • Regional Vice President • REO Closer • Retail Branch Manager • Reverse Mortgage Specialist • Sales Manager • Underwriter • Wholesale Account Exec • And MORE! Resposes are from highly-qualified candidates. Your ad can also be [osted on Indeed and SimplyHired as a FEATURED JOB, on Craigslist in most cities, Googlebase, Oodle, Juju, CareerMetaSearch, TopUSAJobs, Jobalot and MORE! Pay-per-use RESUME BANK.

findmortgagejobs.com

T

he median sale price of U.S. luxury homes jumped 25.8% year over year in the second quarter, while the median sale price of the country’s most affordable homes rose 18.7%, according to a new report from Redfin (www. redfin.com), the technology-powered real estate brokerage.

By comparison, prices of mid-priced and affordable homes grew just 16% and 13.2%, respectively.

“Home prices and sales plummeted at the beginning of the pandemic, but have now more than recovered—especially in the luxury and most affordable price tiers—due to low mortgage rates and strong homebuyer demand during the pandemic,” Redfin Chief Economist Daryl Fairweather said.

Fairweather continued: “Surging prices can be especially problematic for first-time and lower-income homebuyers, but the good news is that the supply of the country’s most affordable homes is growing. That means there could be more homes to choose from and less competition for buyers in that segment of the market.”

HOME SALES RISE FASTEST IN LUXURY AND MOST AFFORDABLE TIERS

Give your customers assurance of your professionalism and integrity.

Become a Certified Reverse Mortgage Professional The National Reverse Mortgage Lenders Association developed this rigorous certification for industry professionals who want to give customers the confidence to know they are working with thoroughly knowledgeable and devoted individuals.

Earning the CRMP* designation requires validating your experience, continuing your education annually, participating in our ethics workshop and passing an exam.

For for more information, visit nrmlaonline.org *The CRMP designation is available to members and non-members of NRMLA.

48

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Purchases of luxury homes in the U.S. surged 88.2% year over year in the second quarter, while purchases of the most affordable homes rose 56.8%. By comparison, purchases of homes in other price tiers increased between 30% and 45%.

Home sales have soared across the board during the pandemic as Americans have taken advantage of low mortgage rates and the flexibility to work from anywhere.

But sales in the luxury and most affordable price tiers have seen especially large increases. For luxury homes, that’s partly because affluent Americans have reaped the gains of a strong stock market and swelling savings accounts. For the most affordable homes, it’s likely due in part to a rebound in investor activity. Home purchases by real estate investors— who commonly buy lower-priced properties—jumped to a record high in the second quarter.

“With the pandemic eviction moratorium coming to an end and many Americans priced out of homeownership, investors are keen on buying up inexpensive properties and turning them into rentals,” Fairweather said. “A relative abundance of homes hitting the market in both the most affordable and luxury tiers has also enabled purchases in these segments to flourish.”

SUPPLY CRUNCH LESS INTENSE The number of homes for sale in the most affordable price tier rose 11.3% year over year during the second quarter.

The next-biggest increase was in the luxury tier, which saw supply grow 1.3%. Supply in the remaining three tiers either declined or grew less than 1%.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

49

50

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

Obstacles Mount For First-Time Buyers

It’s harder to save for a down payment, but today’s first-time buyers have some unique opportunities

BY NICOLE BACHAUD | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

F

irst-time buyers today need a year longer to save for a 20% down payment than they did five years ago.

Renters will need to save an additional $369 per month in the coming year just to keep up with the forecasted growth in home values.

Most first-time buyers put down less than 20%, but today’s low mortgage rates mean monthly payments can remain affordable with a smaller down payment.

U.S. renters earning the typical renter income and saving at the typical renter rate should expect it to take more than a quarter century to save up for a 20% down payment on the typical U.S. starter home — and the time frame can be even longer for many renters of color.

The time needed to save an adequate down payment has risen over the past several years, and cobbling together a down payment remains the highest hurdle most buyers will need to clear on the way to homeownership. But there are a few silver linings unique to today’s market that give first-time buyers a few advantages, according to a Zillow analysis of home values, and incomes. More aggressive saving and/ or a smaller down payment (buyers can put down as little as 3% in many cases) can cut the savings time down dramatically. Expanded opportunities for remote work can open up moreaffordable areas, and ultra-low mortgage interest rates can make the monthly payment manageable once the down payment is secured.

CHANGING NUMBERS Roughly two-thirds (64%) of firsttime buyers put less than 20% down

on their first home, according to the 2020 Zillow Group Consumer Housing Trends Report, and a quarter put down 5% or less. Less than half of first time buyers said they saved the majority of their down payments themselves, meaning the rest used alternate means including gifts and loans from family and friends or tapping into retirement accounts and investments to come up with their down payments. But not everybody has those opportunities.

Black and Latinx home buyers were more likely to say they saved at least some portion of their down payments themselves compared to white home buyers, illustrating some of the disparities in how households are saving up for their American dream.

Saving is really the only option for those first-time buyers without the luxury of relying on gifts and investments for a down payment, and it’s becoming increasingly more difficult as home prices soar. For renters making the median U.S. renter income (as of March 2021) of $3,855 per month and putting 2.4% of their income into savings (the median rate for renters), it will take a whopping 26.8 years to save for a 20% down payment on today’s typical starter home, priced at $148,527. That number seems high, and it is — but the good news is that 20% isn’t required. The down payment on most conventional loans can be as low as 3%, bridging the time needed to save for an adequate down payment on a typical entry-level home under the same assumptions down to just down to 4 years.

For renters who are prepared to be more aggressive with their savings, we estimated how long it would take assuming they save 10% of

their income. For a 20% down payment on the typical starter home, it would take 6.4 years at a savings rate of 10% (up almost exactly one year from the time it would have taken in 2016) and less than one year, around 11.5 months, to save up a 3% down payment.

But those are national medians, and there are huge variations in the time it takes to save for down payments across the country. In notoriously pricey San Francisco it takes the typical renter saving 2.4% of their income 72.6 years to save a 20% down payment on the local starter home, even though renter incomes there are more than twice the national median. If Bay Area renters saved 10% of their income, it would still take 17.4 years to scrape together a 20% down payment. But in places like Birmingham, AL, renters saving 10% of their income can secure a 20% down payment on the local starter home in as little as 4.7 years, and a 3% down payment in less than 9 months.

OPPORTUNITIES & TRADE-OFFS And for many, the opportunity for remote work has opened doors to homeownership — part of what Zillow calls the Great Reshuffling. Under this scenario, those who cannot afford a down payment in San Francisco might be able to afford it elsewhere. A typical San Francisco renter, if able to do their job remotely, could save enough for a 20% down payment on a starter home in Austin in about six years and eight months, and a similar home in Phoenix in five years and seven months. A similar renter in Boston could save enough for a 20% down payment on a starter home in Miami in half the time it would take for a local starter home CONTINUED ON PAGE 52

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

51

FIRST TIME BUYERS CONTINUED FROM PAGE 51

Years it takes a typical renter to save for a down payment varies widely across the nation Years it takes to save for a 10% down payment Down payment % 10%

Savings rate 2.4% of income

San Diego, CA

36.3

Los Angeles-Long Beach-Anaheim, CA

36.0

San Francisco, CA

35.4

Riverside, CA

26.8

Boston, MA

26.8

Portland, OR

26.1

Denver, CO

25.6

Seattle, WA

24.9

New York, NY

24.1

Phoenix, AZ

21.4

Minneapolis-St Paul, MN

21.3

Washington, DC

19.2

Miami-Fort Lauderdale, FL

17.0

Tampa, FL

16.4

Baltimore, MD

16.1

Charlotte, NC

16.0

Philadelphia, PA

15.9

Chicago, IL

15.4

Atlanta, GA

15.1

Dallas-Fort Worth, TX

15.1

Houston, TX United States

14.9 0.0

5.0

10.0

13.2 15.0 10.9

20.0

25.0

30.0

35.0

40.0

10.9 10.4

- 6.5 years, instead of 13 years. On the other hand, a typical renter in Austin hoping to make a move to San Francisco would need to save for 28 years and three months.

Renters of color that are seeking homeownership may be in the best position to take advantage of enhanced work-from-home flexibility — which is a good thing, because the playing field is already not level for these communities. Many Black and Latinx renters often start off the home buying process at a disadvantage, with lower median incomes and lower incomes that lead to longer years to save. It will take Black and Latinx renters 40.1 and 31.8 years, respectively, to save a 20% down payment on the typical U.S. starter home at a 2.4% savings rate, compared to white renters who could save that sum in 25.3 years and Asian renters who could save that sum in 18.6 years.

The longer time it takes for renters of color to save for a downpayment, along with other structural barriers including lack of access to credit and mortgage denials, are just some of the reasons that the median age of Black and Latinx homeowners is increasing over time

52

compared to the median age of white homeowners.

And while it is true that not all buyers need to put a full 20% down and many can secure a mortgage with as little as 3% down, there is a tradeoff. A smaller down payment means a larger monthly mortgage payment, especially with the introduction of mortgage insurance required by many lenders when the down payment is less than 20%. Still, the benefits of owning and gaining equity in a home might outweigh the costs — and even more so in a hot market like today’s where homes are appreciating at record rates.

It is important for buyers to consider how monthly payments change with different down payment options. The monthly payment on a typical U.S. starter home with a 20% down payment would be $709; at a 3% down payment, the monthly payment rises to $953.

LOOKING AHEAD One last wrinkle: All of this is based on current incomes and home values.

But growth in starter home prices has rapidly outpaced renter income growth since before the pandemic, and

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

currently starter homes are growing in value at almost 7 times the monthly rate of renter income growth (starter homes are growing 1.8% month-month, compared to 0.26% for renter incomes).

That means it’s going to take a lot more for today’s renters to save up for tomorrow’s homes. The typical, median U.S. home — more expensive than starter homes — is expected to rise 14.9% in value by this time next year.

And because starter homes have been growing faster in value than mid-tier homes, we’re likely to see equally high or even higher value growth for the bottom of the market, meaning renters will need to save even more just to stay afloat.

Renters saving at the median 2.4% renter savings rate are currently saving about $92/month. To account for a 14.9% price increase over the next year (or, again, potentially more), an additional $369 per month must be saved on top of current savings — or roughly 4x the current level. And given that many renters were severely impacted by the pandemic and are still struggling to get back on their feet, saving for the future may not be an immediate priority.

The upshot is that without the equity from a previous home sale, first-time home buyers face more challenges in coming up with a down payment than repeat buyers. In a housing market where prices are rising at record rates, especially when compared to renter incomes, the ever-increasing sum of a 20% down payment can feel out of reach. The good news is that buyers who want to take advantage of today’s low mortgage rates can do so without putting a full 20% down most conventional mortgages allow as little as 3% to 5%. That lower upfront payment comes with higher monthly payments, but the opportunity to build equity can outweigh those extra costs for many. Additionally, opportunities to work from home and potentially move to a more-affordable locale as part of the Great Reshuffling could allow more would-be buyers to save more quickly for their piece of the American dream.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |

53

FACEBOOK THOUGHTS

NICK ROBERSON

No Need For A Brouhaha If This Column Is All Cattywampus.

We’re Just A Little Kefuffled, Is All

54

Nick Roberson

Nick Roberson is a long-time mortgage industry veteran and a board member of the California Association of Mortgage Professionals. He’s a forthcoming and giving guy, who shares his … unique … perspective on work and life on his Facebook account. Here are some of Nick’s FB thoughts this month:

Pray for me and my credit card. Today we are shopping for back to school clothes for Savannah.

Instructor: Welcome to salsa class! Who’s ready to learn how to dance?

Me, hiding a bag of tortilla chips: There’s been a misunderstanding.

I love seeing everyone at conferences, but it is always nice getting back home. I took a break for lunch today and drove over to pick up Savannah. On our way back there was a little bit of lunch traffic on the road, and this idiot started passing everyone on the shoulder, and then decided to squeeze back in right in front of my car. I laid on the horn, and then offered up a few choice words, the worst of which was the “A” word.

As a general rule I do not cuss in front of my daughter.

You can probably count on one hand the number of times over the course of her life where I have slipped up. So it shocked Savannah when she heard me. She immediately said, “Dad! You need to watch your language. I am not one of your little friends you hang out with at conferences!” I apologized and then just couldn’t stop laughing. This girl just cracks me up.

Not a single person asked me if I could run fast in my new shoes today. Being an adult is stupid.

Challenge for the day. Work Cattywampus, Kerfuffle, and Brouhaha into as many conversations as possible.

Don’t think I won’t. I am already on it. I just told the drive-thru person the sign in the window was all cattywampus. I am pretty sure she said something under her breath as the window closed about hoping the old man chokes on his cattywampus Egg McMuffin ... Game on.

I am not going to throw the restaurant under the bus where I ate last night, but they are not getting any positive reviews from me. I ordered their Sweetbreads as an appetizer, and I don’t know who they have in the back baking this, but it was the worst bread I’ve ever had!

Next time you get a call from a blocked or unknown number, answer it.

Whisper, “It’s done, but there’s blood everywhere.” Then hang up.

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

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

PATH

BUILT BY ORIGINATORS FOR ORIGINATORS TM

PIV T TO

ADAPTING TO CHANGE

PRMG has created a ʻPath to Pivotʼ to more consumer facing activities, modern lending technology, and an ever-improving path for Originators to evolve with the market and continue to deliver best in class service!

866.PRMG.YES!

RETAIL │ WHOLESALE │ CORRESPONDENT

www.PRMG.net ©2021 Paramount Residential Mortgage Group, Inc. (“PRMG”) NMLS ID #75243; 1265 Corona Pointe Court, Corona, CA 92879; All Rights Reserved. Licensed by the California Department of Financial Protection and Oversight, the Residential Mortgage Lending Act, License #4131268; Finance Lenders Law License #603D903; AZ Mortgage Banker License #910387; Georgia Residential Mortgage Licensee #32087; IL Residential Mortgage License # MB.6760962; KS-Licensed Mortgage Company, #MC.0025196; Massachusetts Mortgage Lender and Broker License, #MC75243; MS Department of Bank and Consumer Finance; NV Mortgage Broker License #3693; NH Banking Department 17393-MB; Dept. of Banking in the Common Wealth of PA, #37894; RI Licensed Lender, #20112799LL; and is also approved to lend in the following states: AL, AK, AR, CO, CT, DE, DC, FL, HI, ID, IA, KY, LA, ME, MD, MI, MN, MO, MT, NJ, NM, NC, ND, OH, OK, OR, SC, SD, TN, TX, UT, VT, WA, WV, WI. For licensing and other disclosures please visit: www.prmg.net/licenses. For NMLS information: www.nmlsconsumeraccess.org. PRMG is an Equal Housing Lender. Questions? Comments? Email: Feedback@PRMG.net

EQUAL HOUSING

LENDER

PARTNER WITH THE LEADER IN NON-QM MORTGAGE LENDING MORE EXPERTISE | MORE SERVICE | MORE TECHNOLOGY

Visit AngelOakMS.com | 877.926.3073 ©Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. 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-tobusiness communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. MS_A252_1220