National Mortgage Professional Magazine December 2017 by ambizmedia

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Gbox Licenses: BRE#01300944, DBO# 603L516, AZ#0919899, CA#333659, CO#333659, CT#MCL-333659, DE#29707, FL#MLD886, GA#33937, ID#MBL-7961, IL#MB.6760993, LA#333659, MD#21707, MI#FL0018821, MS#333659, NJ#333659, NC#L-156181, OH#MBMB.850183.000, OK#ML010327, OR#ML-5093, PA#48972, TX#333659, &%$#"! WA#CL-333659 This information is meant for Real Estate and mortgage professionals ONLY and is not to be provided to consumers. All products are not available in all States. % % Rate, terms, and conditions are subject to change without prior notice.

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NationalMortgageProfessional.com

MLS LinkTM is a "set it and forrget it" feaature

table of

N A T I O N A L

National Mortgage Professional Magazine’s 40 Under 40: The 40 Most Influential Mortgage Professionals Under 40

D E C E M B E R

42 The Mortgage Godfather: It’s the Holidays, Time to Get to Work By Ralph LoVuolo Sr.

2 0 1 7

M O R T G

V O L

A SPECIAL FOCUS ON “GROWTH STRATEGIES FOR 2018”

Responsible Leadership is Critical to Success of Non-QM Marketplace By Tom Hutchens ........................................................56

Let It Grow: Insight Into Creating, Managing and Fostering Growth in 2018 By Rob Pieklo ..........................................................60

2018: A Race to the Bottom: An Interview With Bill Cosgrove, CEO of Union Home Mortgage By Alice Alvey, CMB ......................62

Two Surefire Ways Not to Lose the Digital Mortgage Game in 2018 By Mark Madsen ....................................................................64

’Tis the Season for Refis: Cash-Out Refinances May be the Answer for Late-Year Origination Blues By Ray Brousseau ....66

46 nmpU Campus Talk: The Missing Ingredients in Business Plans and Goals? By Ron Vaimberg

F R

Doing Things Differently May Make All the Difference By James Butschek ............................................................................68

B i

Increasing Market Share Through Machine Learning Platform, Hybrid Valuation Products and Expanded Presence in Servicing in 2018 By Joni Pilgrim ......................................................................70

M C

Maturity By Eric Weinstein ................................................................72

P C

Real Estate Investment Trends You Need to Know Heading Into 2018 By Jackie Roberson ..........................................................74

FEATURES

New Products Drive Non-QM Market Growth By Tom Hutchens ......8

The Elite Performer: After the Eggnog By Andy W. Harris, CRMS ....8

Recruiting, Training and Mentoring Corner: Do Your Loan Officers Have a Plan? By Dave Hershman ........................................10

3 Points With Mat Ishbia ..................................................................16

50 Managing Consumer Complaints: Applying the Lessons of the CFPB’s Complaint Portal By Jonathan Foxx, Ph.D., MBA

Texans Update Home Equity Rules By Gavin T. Ales ......................18

V I S I T Company

Web Site

O U R

A D Page

5 Arch Funding Corp........................................... www.5arch.com ............................................................21 Accio Data ........................................................ www.ezcbsv.com ..........................................................26 Angel Oak Mortgage Solutions ............................ www.angeloakms.com ..............................63 & Back Cover Athas Capital Group .......................................... www.athascapital.com ....................................................9 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................17 Caliber Home Loans.............................................. www.caliberwholesale.com ..............................................39 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................37 & 80 Castle & Cooke Mortgage LLC .............................. www.castlecookemortgage.com ......................................66 Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................65

84 Are You Originating Backwards? By Brian Sacks

DocMagic .......................................................... www.docmagic.com ........................................................5 FAMP-Palm Beaches Chapter .............................. www.palmbeachesfamp.org ............................................80 Gateway Mortgage Group, LLC ............................ www.gatewayloan.com ..................................................13 Greenbox Loans, Inc........................................... www.greenboxloans.com ..............................................IFC Jet Direct Mortgage ............................................ www.jetdirectmortgage.com ..................................26 & 58 Lykken On Lending ............................................ www.lykkenonlending.com ............................................90

MBA-NJ/NJAMB .................................................. www.mbanj.com ..........................................................69

MBS Highway .................................................... www.mbshighway.com/MNN ..........................................91 Mortgage Bankers Association ............................ www.mba.org ................................................................83

of contents

R T G A G E

O L U M E

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

N U M B E R

1 2

Marketing Through the Holidays ......................................................20 NAMB Perspective ............................................................................22 OrigiNation: Director Duel and Future of the CFPB By Andy W. Harris, CRMS ..................................................................38 Drilling Down on Negative Equity Issues : A New Name … By Pam Marron ..................................................................................44 Tony’s Corner: A Message From NAMMBA Founder & CEO J. Tony Thompson III, CMB......................................................52 Compliance Matters: Adverse Action Obligations By Jonathan Foxx, Ph.D., MBA ..........................................................54 Financial Darkness: Get Amped About Your Business and Restore Your Client’s Power By Tracy Cavanaugh, CMP, CMPS ....76 Better Surround Sound: Superior Ways to Get Things Done in Your Organization By Dr. Freddy Davis ........................................78

MBA’s Mortgage Action Alliance: A Message From MAA Chairman Gene M. Lugat ..................................................................82 Prepare for the Inevitable: The Four Cornerstones of Career Insurance By Dr. Marty Martin ..............................................88

COLUMNS New to Market...................................................................................12 News Flash: December 2017 ............................................................14 Heard on the Street...........................................................................40 Outstanding Places to Work.............................................................92 NMP Calendar of Events...................................................................93 NMP Resource Registry....................................................................94

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

Web Site

Page

Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................28 & 29 NAMB+ ............................................................ www.nambplus.com ......................................................27 NAMMBA .......................................................... wwwconnect2018.org ....................................................71 NAPMW ............................................................ www.napmw.org ....................................................43 & 87 NAWRB ............................................................ www.nawrb.com ............................................................67 New American Funding ...................................... www.newamericanfunding.com ......................................96 New England Mortgage Expo .............................. www.thewarrengroupevents.com/nemortgageexpo ..........81 NMP U .............................................................. www.nmpucoaching.com ..................................53, 59 & 75 NRMLA.............................................................. www.nrmlaonline.org ....................................................90 OSI Express........................................................ www.osiexpress.com/mlslink ............................................1 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ......................7, 41, 61 & Inside Back Cover REMN................................................................ www.remnwholesale.com ..............................................15 ResMac, Inc. ...................................................... www.resmacb2b.com ....................................................11 Reverse Mortgage Funding, LLC .......................... www.partners.reversefunding.com/learnmore ..................45 TagQuest .......................................................... www.tagquest.com ........................................................73 The Bond Exchange............................................ www.thebondexchange.com ..........................................55 United Wholesale Mortgage ................................ www.uwm.com ........................................................48-49

DECEMBER 2017 Volume 9 • Number 12

FROM THE

publisher’s desk

Growing Your Business in 2018 Readers of this publication know that it’s a key component of our mission to provide you with the 1220 Wantagh Avenue • Wantagh, NY 11793-2202 tools and information you need to succeed in the mortgage business. It’s why we curate the best Phone: (516) 409-5555 • Fax: (516) 409-4600 thought leadership in the industry, why we offer you training programs through nmpU and great Web site: NationalMortgageProfessional.com networking opportunities. Our goal is to see you achieve even higher levels of success in the year STAFF Eric C. Peck Joel M. Berman ahead. Editor-in-Chief Publisher - CEO (516) 409-5555, ext. 312 (516) 409-5555, ext. 310 But, we’ll also take a look back at 2017. Some great things happened to many of our readers ericp@mortgagenewsnetwork.com joel@mortgagenewsnetwork.com this year. We also faced some tragedy, perhaps most notably the loss of one of our own to the Joey Arendt Beverly Bolnick senseless Las Vegas mass shooting on Oct. 1, 2017. His name was Brian Fraser of Greenpath Art Director VP-Sales & Marketing (516) 409-5555, ext. 323 (516) 409-5555, ext. 316 Financial Services. joeya@mortgagenewsnetwork.com beverlyb@mortgagenewsnetwork.com His wife Stephanie Pagan joined us at our Holiday Networking Party in southern California Scott Koondel Phil Hall VP of Operations Managing Editor earlier this month. She met Brian 15 years ago at a real estate office in Fullerton, Calif. She was (516) 409-5555, ext. 324 (516) 409-5555, ext. 312 working in the same business and they ended up calling on the same offices. A sales rivalry scottk@mortgagenewsnetwork.com philh@mortgagenewsnetwork.com turned into something much more and the couple were married 18 months later. Together, they Richard Zyta Francine Miller Social Media Ambassador Advertising Coordinator brought Nicholas (25), Devin (17), Brayden (10) and Aubree (4) into the world and began building a (516) 409-5555 (516) 409-5555, ext. 301 richardz@mortgagenewsnetwork.com francinem@mortgagenewsnetwork.com wonderful family. Rick Grant Dylan Pollock Brian was the kind of person who made our industry look good. He was an outdoorsman, Special Reports Editor Administrative Assistant sportsman, pilot, hard worker, family man, and last summer, he studied to become an ordained (570) 497-1026 (direct) (516) 409-5555, ext. 314 (516) 409-555, ext. 311 dylanp@mortgagenewsnetwork.com minister so he could marry his oldest son on July 22, 2017 (see photo below), who serves in the rickg@mortgagenewsnetwork.com U.S. military. ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact A raffle at the Holiday Party raised $1,200 for the VP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail beverlyb@mortgagefamily Brian tragically left behind. A young U.S. Marine newsnetwork.com. who was on hand to collect toys for the Toys for Tots ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck program reached into his own wallet to support them. at (516) 409-5555, ext. 312 or e-mail ericp@mortgagenewsnetwork.com. The deadline for submissions It was an emotional evening that affected more than is the first of the month prior to the target issue. 500 industry professionals in attendance. Even now, SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@mortgageBrian is making the world a better place. newsnetwork.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. It reminds us that we should take time to celebrate Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the the good ones, those industry professionals who authors alone and do not imply the opinion or endorsement of Mortgage News Network Inc., or the offimake us all proud to be in this business. We do that cers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) every year with a number of our features, including this month’s “40 Most Influential Mortgage and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activProfessionals Under 40.” This is the eighth year we’ve produced this list, based on peer voting. ities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement Despite the rough waters of the U.S. economy and an ever-shifting landscape, these 40 of the product and/or services by Mortgage News Network Inc., NAMB, NAPMW, NCRA, and other state mortgage trade associations. professionals have persevered in a time of regulatory and economic uncertainty. They are examples National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage to us all. trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in Mortgage When it comes to success in the year ahead, customer service will set the best companies apart. News Network Inc. publications. National Mortgage Professional Magazine and Mortgage News Network Inc. reserve the right to edit, reject and/or postpone the publication of any articles, information or data. But even the best will sometimes suffer missteps that can result in a bad borrower experience. To help you deal with that, we bring you a great feature by Jonathan Foxx entitled “Managing Consumer Complaints: Applying the Lessons of the CFPB’s Complaint Portal.” Jonathan talks about the two ways companies deal with consumer complaints and offers advice on making sure that your good company isn’t overwhelmed by bad news posted in a very public forum. Another objective for the most successful lenders in 2018 will be the number of new borrowers they can attract. For many originators, minority homebuyers will be a great source of new business, but only if they have the right technology to serve them. In his article, “Three Ways Fintech Can Help Minority Buyers; Three Ways It Can Hurt Them,” NAMMBA Founder and CEO J. Tony Thompson III takes a closer look at financial technology and its impact on minorities. To make this issue your ticket to a stronger business next year, we’ve included a wealth of thought leadership and packed the magazine with growth strategies you can use to grow in 2108. Of course, everything in business starts at the top. So, be sure to read “Responsible Leadership is Critical to Success of Non-QM Marketplace” by Tom Hutchens of Angel Oak Mortgage Solutions. And be sure to think outside of the box for maximum impact, as described by James Butschek of Mountain West Financial in his article, “Doing Things Differently May Make All the Difference.” We’ll also focus on trends you should know about with “Real Estate Investment Trends You Need to Know Heading Into 2018” by Jackie Roberson. And don’t miss “Let It Grow: Insight Into Creating, Managing and Fostering Growth in 2018” by Rob Pieklo of American Financial Resources. We also offer a discussion of what lies ahead in the mortgage landscape in “2018: A Race to the Bottom: An Interview With Bill Cosgrove, CEO of Union Home Mortgage.” Written by Alice Alvey, of Union Home Mortgage, this Q&A with a former MBA Chairman should not be missed. Technology is going to factor in next year, of course, and so we offer you “Increasing Market Share Through Machine Learning Platform, Hybrid Valuation Products and Expanded Presence in Servicing in 2018” by Joni Pilgrim of Nationwide Appraisal Network (NAN) and “Two Surefire Ways Not to Lose the Digital Mortgage Game in 2018” by Mark Madsen. For some, it will come down to product mix to be sure to read “’Tis the Season for Refis “ by Ray Brousseau of Carrington Mortgage Services, Mortgage Lending Division. Finally, don’t miss this month’s column from Eric Weinstein, entitled: “Maturity,” a comical look at the many options that exist for today’s Mortgage Broker. As this year comes to a close, all of us at National Mortgage Professional Magazine and Mortgage News Network want you to know that we are thankful for you, and are glad that you read our publication, as we are dedicated to being the resource you depend upon to achieve the success you deserve. We wish you all the very best of the holiday season and hope you will spend quality time with the people you love. If we learned nothing else from the tragic loss of Brian Fraser, let it be that we only have this moment to love and enjoy our loved ones. Don’t miss out on that opportunity. Sincerely, Joel M. Berman, Publisher-CEO NMP Media Corp. Joel@MortgageNewsNetwork.com National Mortgage Professional Magazine is published monthly by Mortgage News Network Inc. • Copyright © 2017 Mortgage News Network Inc.

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n National Mortgage Professional Magazine n DECEMBER 2017

NAMB 601 Pennsylvania Avenue NW, South Building l Washington, D.C. 20004 l Phone: (202) 434-8250 l Fax: (530) 484-2906 l Web site: NAMB.org l E-mail: Membership@NAMB.org

NAMB 2017-2018 BOARD OF DIRECTORS E X E C U T I V E

John G. Stevens, CRMS President JohnGStevens@NAMB.org

Richard Bettencourt, CRMS President-Elect Rick.Bettencourt@NAMB.org

Nathan S. Pierce, CRMS Vice President Nathan.Pierce@NAMB.org

B O A R D

Andy W. Harris, CRMS Treasurer Andy.Harris@NAMB.org

Michelle Velez, CMC Secretary Michelle.Velez@NAMB.org

Fred Kreger, CMC Immediate Past President Fred.Kreger@NAMB.org

D I R E C T O R S

Linda McCoy, CMRS Linda.McCoy@NAMB.org

Chris Bettis, CMC, CRMS Chris.Bettis@NAMB.org

Wayne King, CRMS Wayne.King@NAMB.org

Michael DeSantis Mike.DeSantis@NAMB.org

George Burkely, CRMS George.Burkley@NAMB.org

Valerie J. Saunders, CRMS Executive Director ValSaun@NAMB.org

Harry H. Dinham, CRMS Chief Operating Ofﬁcer HDinham@NAMB.org

Olga Kucerak, CRMS Olga.Kucerak@NAMB.org

National Association of Professional Mortgage Women 345 North Main Street, Suite 313 l West Hartford, CT 06117 l Phone: (800) 827-3034 l E-mail: NAPMW1@NAPMW.org l Web site: NAPMW.org

2017-2018 NAPMW NATIONAL BOARD OF DIRECTORS

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

DECEMBER 2017 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Laurel Knight President-Elect (425) 426-2028 PresElect@NAPMW.org

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

Glenda Mooney Secretary (314) 703-8714 NatSecretary@NAPMW.org

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

Lynne Sparks Parliamentarian (678) 872-9000, ext. 10611 LSparks@SKWRLaw.com

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

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

2017-2018 BOARD OF DIRECTORS

Paul Wohkittel President (410) 644-5020 PWohkittel@CISInfo.net

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

Julie Wink Ex-Officio (901) 259-5105 Julie@DataFacts.com

William Bower Director (800) 288-4757 WBower@Continfo.com

Janet Curtis Director (210) 224-6121 JCurtis@SARMA.com

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

Gary Glucroft Director (800) 877-3908, ext. 100 GaryG@TheScreeningPros.com

Brian McKinney Director (706) 373-2200 McKinney@MCBUSA.com

Helen Meyers Director (800) 782-9094 Helen@CreditInfoSystems.com

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

Debbie Ysebeart Director (425) 264-1024 Debbie@Alliance2020.com

Delia Zuniga Director (623) 889-8999 Delia@AdvantagePlusCredit.com

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

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

Big Things on the Horizon for ARMCP This year will bring some great new opportunities to the Association of Residential Mortgage Compliance Professionals™ (ARMCP™), currently consisting of nearly 1,600 members. ARMCP™ will soon be launching its own Web site to fulfill the needs of residential mortgage compliance professionals. ARMCP™ is the first and only independent, national organization in the U.S. devoted exclusively to residential mortgage compliance professionals. Our independence means we are not affiliated with any profit oriented corporation or enterprise. ARMCP™ membership consists solely of those members who have joined it on their own and were not solicited to join it via solicitations from third-party lists or subscriptions. Independence is the key to the value of our advocacy! There are currently two slots remaining for the Steering Committee. The Steering Committee will be drafting new by-laws, determining a nominating process, conference planning, and many other areas of interest relating to ARMCP™’s mission. If you are interested in joining the Steering Committee, email Info@ARMCP.org.

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n National Mortgage Professional Magazine n DECEMBER 2017

New Products Drive Non-QM Market Growth By Tom Hutchens

DECEMBER 2017 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

ecause non-QM loans have performed so well since they were first offered four years ago, Angel Oak and other alternative lenders are expanding the number and types of products. These new products enhance the benefits available to several types of homebuyers. They also enable originators to offer attractive options to their customers. The mortgage marketplace needs these responsible new products to grow and meet the needs of all creditworthy consumers. Consumer choices were severely limited after the mortgage market collapsed nearly 10 years ago. Prime borrowers have mostly faced a one-size-fits-all environment. The selfemployed, retirees, investors and those experiencing a credit event were usually turned down. With the advent of non-QM lending in 2014—spurred by the Consumer Financial Protection Bureau’s (CFPB) ability-to-repay rules—innovators like Angel Oak began to enable more diverse consumers to obtain home loans. From the beginning, we knew that market growth demanded responsible development of new products. But, we had to walk before we could run. Our first offer was the NonPrime Program. Although it was nothing like the pre-recession sub-prime loans, the marketplace often confused them. The Non-Prime Program was a tremendous success. Rates and terms were reasonable and defaults low. More importantly, the data we acquired enabled us to expand the product offerings so that qualifying criteria and rates were appropriate for borrowers with differing circumstances. Angel Oak now offers seven distinct programs. Each one allows borrowers to obtain the non-agency loan that aligns best with their income, equity and credit situation. Our newest product, Platinum, represents a refinement of programs that qualified borrowers based on bank statements and following a credit event. With information from investors on Wall Street and originators in the field, we identified a large group of potential borrowers with credit scores high enough to warrant a new slot on our pricing matrix. These borrowers can now acquire loans with rates just above those for agency loans. Previously, borrowers best served by Platinum would have been placed in either our Portfolio Select or Bank Statement programs with higher rates. Moving forward, responsible new product development and market growth will be driven by richer performance data and insights gleaned from broadening relations with originators who work with and understand the needs of their customers. As the current $5 billion non-QM mortgage business is just a fraction of a $100 billion-plus potential market, we expect that market maturation will result in more diverse products featuring better terms for consumers.

elite performer the

After the Eggnog BY ANDY W. HARRIS, CRMS

very year seems to go by so fast, and we find ourselves continuously surprised with how quickly the New Year arrives. Many of us tend to reminisce over the good things over these past 12 months, while trying to forget the bad. What we need to remember is that everything, whether good or bad, is a lesson. Our character and how we improve is certainly tied to our life lessons. Speculating about 2018 is simply forming a theory of how your year will go without any firm evidence. Instead of speculating, we need a plan. We need goals, developed around your life lessons and the lessons of those around you to end 2018 as a successful year. While you are business-planning for 2018, I encourage you to do something a little different. Of course, continue doing the operational and marketing things that work, and stop doing the things that do not work, but embrace lessons learned from others in your field. What I mean by this is learn not just from your lessons, but from the lessons of others as well and ‘delegate’ your lessons. Don’t reinvent a wheel if the best method has already been tracked and proven. You can find mentors and colleagues in non-competing markets and share ideas that can greatly change the future of your business. They say some lessons cannot be taught and must be learned, but that doesn’t mean someone else who has already learned a lesson cannot teach you a new one. So that’s both true and false. I have found this to be invaluable over the years and the best part about it is that it goes both ways. I’ve been humbled with the ability to help others succeed and greatly appreciate those willing to invest the time with me to provide perspective from a different side. The teacher and the student are both wiser for embracing the relationship. You learn as you teach and you teach as you learn. I find the New Year exciting as it’s a refreshing way to set goals for the coming year with employees, colleagues and business partners. I hope you find some time to relax and enjoy the holidays with your friends and family, but after that eggnog, it’s time to get to work. Share your vision with others. Expand your lessons to include those of others. You’ll find that the year ahead will be very rewarding.

The views expressed in this article are those of the author alone and do not necessarily reflect the views or policies of the author’s employer or any organization with which the author may be affiliated. Tom Hutchens is Senior Vice President of Sales and Marketing at Angel Oak Mortgage Solutions, an Atlanta-based wholesale/correspondent lender licensed in more than 35 states and operating in the non-QM space for over three years. Tom has been in the real estate lending business for nearly 20 years. He may be reached by phone at (855) 539-4910 or e-mail Info@AngelOakMS.com

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platform. The new e-closing functionality is being included in AtClose as a seamless, secure and fully-compliant module. E-signatures simplify the closing process for lenders, settlement providers, and borrowers. Executed documents flow back into AtClose effortlessly, reducing the need for paper documents and giving parties additional time to review each loan package. AtClose allows agents to selectively enable e-closing for specific lenders or geographic areas to meet local recording requirements and individual lender or investor needs. AtClose gives settlement agents complete control over which documents will be pushed for e-signatures, and when they should be made available to the respective individual(s). “The biggest advantages that AtClose offers settlement agents are a significant reduction in notary fees and the elimination of post-closing errors,” said Arshad Masood, Chief Executive Officer of Visionet Systems. “Our sophisticated platform saves them the time and trouble involved in re-doing the signing process. With the CFPB and other regulatory bodies encouraging e-closing, it is time for Title & Settlement firms to begin closing all loans electronically.” RealKey Launches New Mortgage App

RealKey has launched its universal mortgage and real estate automation software, designed to bring mortgage processing and homebuying into the modern era. RealKey Founder and CEO Christopher Hussain and Co-Founder and Chief Technology Officer Will Hanson have teamed up to offer mortgage and real estate professionals the technology tools they need to more efficiently work through the buying and lending process. “Traditional mortgage applications are like a terrible game of Tag, telephone calls, passing notes from borrower, to banker/originator, to processor, to underwriter and back,” said Hussain. “Shopping for a mortgage can be equally

cumbersome, requiring duplicate credit inquiries and sending documentation multiple times to each lender. My vision is to create a universally accepted application for buying a home and getting a mortgage.” “With layer upon layer of regulations, underwriting requirements, and cumbersome bank processes, the mortgage application and approval process is slow, tiresome, riddled with errors, and frustrating to everyone involved, especially customers,” said Hanson. RealKey breaks down these barriers, allowing all participants in the process to connect in realtime and have one single application that can be accepted by any mortgage lender, ensuring that loans are completed faster and with fewer errors. ValuTrac Launches New Appraiser Portal and Mobile App

ValuTrac Software has announced the launch of the ValuTracOne appraiser portal and mobile application, a single access point that connects appraisers to all of their appraisal management company (AMC) and lender clients who are supported by ValuTrac Software’s primary products, ValuTrac Pro and ValuTrac Pro Plus. ValuTracOne enables appraisers to manage their entire pipeline of appraisal orders seamlessly, in one location with one login. Appraisers can use ValuTracOne to securely receive assignments, set inspection dates, transfer documents, send client messages, as well as view real-time status of their entire appraisal pipeline from all of their clients supported by ValuTrac Software. ValuTracOne syncs automatically with the ValuTracOne mobile application, which is free and available for both Android and iOS mobile devices. “Appraisers are often the forgotten piece when it comes to technology and appraisal management applications, and we’re doing something to change that,” said Clint Cornett, Chief Executive Officer of ValuTrac Software. “Productivity and continued on page 20

NAMB Focus will feature sales and marketingfocused breakout sessions, a large exhibit hall and plenty of opportunities to network and share ideas with fellow mortgage professionals! In addition, NAMB is excited to announce the NAMB Focus Keynote Speaker, The King of Sales, Jeffrey Gitomer. As a New York Times Bestselling Author, Leadership and Sales Guru, Jeffrey gives public and corporate seminars, runs annual sales meetings, and conducts live and Internet training

programs on selling, customer loyalty, and personal development. He has presented an average of 120 seminars a year for the past 10 years. Some of his customers include Coca-Cola, DR Horton, Caterpillar, BMW, Hilton, Wells Fargo Bank, Blue Cross-Blue Shield, Hyatt Hotels, IBM, AT&T, and hundreds more. Donâ&#x20AC;&#x2122;t miss this opportunity to set your goals, learn new sales techniques and meet the countryâ&#x20AC;&#x2122;s top mortgage professionals at NAMB Focus ... register today!

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NAMB Focus: Sales and Marketing Conference Thursday-Saturday, February 15-17, 2018

Marketing Through the Holidays

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s we enter the last stretch of 2017, companies look back at the year’s marketing campaigns to evaluate results and start planning for 2018. While most companies slow their marketing efforts as the end of the year approaches, you can have a competitive edge over your competition. Choosing to market through the holidays is just as important to look ahead, it is equally as important not to lose focus on the present day. That’s what makes marketing through the holidays so interesting. If you choose to market, understand that your expected response rates should be less than usual. You should also expect to close at a much higher rate. People who are purchasing and refinancing their homes during the holidays are MOTIVATED. That’s why close ratios rise. For each person who decides not to market during the holidays, there is another who decides to stick with it. For this reason, results can vary through the holidays. To overcome this, maintain consistency. Whatever sort of marketing campaign you do, keep it going! Failure to maintain consistency is the biggest holiday campaign killer of them all. You must get in front of those who want to move and entice them to do so with you. So, pick up the phone and call a marketing company to find out what is working. Marketing firms are the most underused and fantastic way to stay on top of market conditions. They always tell you what is working, and they have a good grasp on the state of the entire nation, not just your region. Spend some time and money getting your name out there. If you are not picking up five to 10 new leads per week, you are missing the boat. Many companies are supplying their loan originators with hundreds of leads per month. If you can close these leads at a rate of 10 to 15 percent, you are in for a good month. We are seeing better results with marketing now than we have seen in the last few years. Not just in response rates, but the results from closed loans and the return-oninvestment (ROI) are all higher now than it has been. The companies that market through the holidays maintain consistency and will have a head start over other companies for the beginning of the 2018. Ask yourself this very important question: “What kind of company are we?”

TagQuest Inc. is a full-service marketing firm specializing in marketing for the mortgage industry. Call (888) 717-8980 or visit www.tagquest.com.

IMAGINE • INNOVATE • SUCCEED SPONSORED EDITORIAL

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service levels are two key factors that determine whether appraisers receive assignments from their clients. The issue is, achieving optimal levels of either—let alone both—has traditionally been very challenging. ValuTracOne solves this issue by giving appraisers an effortless way to raise their productivity and service levels.”

Cronkright. “We saw a fraud attempt in West Michigan that was so sophisticated, that we realized we needed the ability to verify a party’s identity and bank account information at critical points in the transaction in order to prevent another fraud incident.” FirstClose Unveils Mortgage Prequal Tool

Title Company Owners Launch CertifID Fraud Protection

Title industry experts have unveiled CertifID, a wire fraud prevention platform designed to safely authenticate the identities of transactional parties and share banking information securely. CertifID uses proprietary digital device analysis and knowledgebased authentication sequencing and provides a guarantee up to $500,000. According to the owners, Thomas Cronkright II and Lawrence Duthler, CertifID was born out of a need to prevent another fraud incident from happening to them. The founders experienced a wire fraud which affected Sun Title, their Michigan-based title agency, in Spring of 2015, costing them $180,000. “Our experience with fraud was one of the most terrifying in our professional careers,” said Duthler. “It took us two years and countless hours, but we were able to recover a majority of the funds we lost. During that time, we were exposed to the depth and sophistication of the global cyber fraud network. It is shocking.” Cronkright and Duthler assembled a team of title and technology experts to develop a new wire fraud prevention platform, designed to confirm the true identities of people and expose fraud so that all parties to the transaction are protected. CertifID’s proprietary technology verifies the identity of an individual (such as a participating escrow officer, buyer or seller) as well as bank account credentials, enabling those involved in a real estate transaction to transfer funds securely. In addition, CertifID’s system is backed by a $500,000 guarantee. “Fraud hit what we call an ‘inflection point’ last Fall, as fraudsters began to insert themselves in real estate transactions with incredible precision and timing,” said

FirstClose has announced the addition of the FirstLook Report, an instant prequalification tool for mortgage lenders, to its portfolio of service offerings. The FirstLook Report allows lenders to efficiently prequalify borrowers by providing one instant multi-service report that includes credit, property valuation, flood zone indicator, title search, tax and MLS information. This all-in-one report complements the FirstClose Report, which serves home equity/consumer lending departments at banks and credit unions. The FirstLook Report provides lenders with all the information they need to make an informed decision about proceeding to the next level in the loan origination process with a potential borrower. “We created the FirstLook Report because we had not seen anything available to lenders that could help them in so many different ways at once during the complex loan origination process,” said Tedd Smith, Chief Executive Officer of FirstClose. “Not only does this report give them an idea of everything they will eventually need in order to extend credit on real estate secured loans, but it also empowers them to make faster decisions at a very minimal cost.” Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

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Message From NAMB 2017-2018 President John G. Stevens, CRMS Time recently read a New York Times article, “Facebook Has 50 Minutes of Your Time Each Day. It Wants More,” that discussed how much time is spent on Facebook. “Fifty minutes … Maybe that doesn’t sound like so much. But there are only 24 hours in a day, and the average person sleeps for 8.8 of them. That means more than 1/16th of the average user’s waking time is spent on Facebook.” (https://www.nytimes.com/2016/05/06/business/facebook-bends-the-rules-of-audience-engagement-to-its-advantage.html) To compare, Brian Tracy stated: “If you read only one book per month, that will put you into the top one percent of income earners in our society. But if you read one book per week, 50 books per year, that will make you one of the best educated, smartest, most capable and highest paid people in your field. Regular reading will transform your life completely.” Two very different uses of time. Only one of these will “transform your life completely”. Proper utilization of time will determine your future. It is imperative that you focus on what is MOST important to you, and to not be lured away by momentary items of interest. Warren Buffet instructed his Pilot, Mike Flint, to do this three step program:

l Step 1: Buffett started by asking Flint to write down his top 25 career goals. l Step 2: Then, Buffett asked Flint to review his list and circle his top five goals. l Step 3: At this point, Flint had two lists. The five items he had circled were List A and the 20 items he had not circled were List B.

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Flint confirmed that he would start working on his top five goals right away. And that’s when Buffett asked him about the second list, “And what about the ones you didn’t circle?” Flint replied, “Well, the top five are my primary focus, but the other 20 come in a close second. They are still important, so I’ll work on those intermittently as I see fit. They are not as urgent, but I still plan to give them a dedicated effort.” To which Buffett replied, “No. You’ve got it wrong, Mike. Everything you didn’t circle just became your Avoid-At-All-Cost list. No matter what, these things get no attention from you until you’ve succeeded with your top five.” (https://jamesclear.com/buffettfocus) We all have the same 24 hours in a day. What you do with yours will determine your future. Treat your time as if it were you most valuable resource. You would not go out and spend all of your money on throw away items. So why would you do the same with your time? Invest your time in what matters most. And you will be rewarded with priceless dividends.

John G. Stevens, CRMS President of NAMB

“Proper utilization of time will determine your future. It is imperative that you focus on what is MOST important to you, and to not be lured away by momentary items of interest.”

John G. Stevens, CRMS is President of NAMB and Vice President of National Business Development for Paramount Residential Mortgage Group Inc. (PRMG). John has been actively involved in NAMB and mortgage industry thought leadership since 2010. Feel free to reach John by phone at (801) 427-7111 or e-mail JohnGStevens@gmail.com.

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A Message From NAMB Government Affairs Committee Chair Christopher J. Bettis, CMC, CRMS

We are also actively “unpacking” the Final Rules & Official Commentary on TRID and HMDA 2017. My guess and sense is that you have been blessed, as I have, because of this industry. I am lucky to be able to serve with the best and brightest in the nation. While we are going to fight to protect the consumer and the Mortgage Loan Originator no matter what, we are stronger when you are involved. If you are not a member of NAMB, join today. If you are already a member, but not engaged, get involved. Someone’s voice is going to be heard. Will it be yours or someone else’s? Go NAMB! Christopher J. Bettis, CMC, CRMS of Eugene, Ore.based Precision Capital is a member of the NAMB Board of Directors and Chairman of the Government Affairs Committee. He may be reached by e-mail at Chris.Bettis@NAMB.org.

As we look forward to 2018, it is time to start putting together your mortgage origination goals for the coming year. I learned a long time ago that you are either going up or going down, and that nothing stays the same. The year 2017 was a momentous one for many mortgage originators, however there are those originators out there who are looking to work “Smarter Not Harder” and increase their originations and income in 2018. Membership in NAMB is one of those investments that will help move your mortgage origination practice to the next level. Whether you are a Mortgage Broker, Mortgage Banker or a Mortgage Loan Originator, NAMB is working hard with your federal politicians and regulators to make your business life better for consumers and yourself. With the changing political environment and change in leadership with the Consumer Federal Protection Bureau (CFPB), now is the time to have our voices heard on how we are working to the benefit of your consumer clients. Your involvement and membership with NAMB puts you in a position to be heard on the issues of the mortgage industry and be that person who can make a difference in the long run, not only for you and your clients, but also for the mortgage industry and its future. For $120 per year, you can join NAMB for the 2018 calendar year. That is just $10 per month, a very inexpensive monthly investment into your business. I know clients who spend twice that amount every day at Starbucks. My NAMB membership has paid for itself time and time again. Recently, I received a referral from a fellow NAMB member and friend who is an originator in California on a couple who was moving to Northwest Indiana. She could not do their mortgage in Indiana and referred my broker shop the business. The clients had a Certified Residential Mortgage Specialist (CRMS) do their deal and the mortgage closed professionally on time and the clients were completely satisfied. We earned an extra commission we would have never had and it was a win-win for everyone involved. It was an extra deal that we would have never had if I was not a member of NAMB and built relationships with my fellow originators throughout the United States. I have, in return, referred business to fellow NAMB members in other states that I cannot do. You will get out of NAMB what you put into it. Membership in NAMB will give you access to so many great things to build and take your mortgage business to the next level. For Brokers, you will have access to the nation’s best wholesale lenders who will give you a pricing advantage against your local banks and credit unions. You will have the opportunity to give your clients options and find the best mortgage rates and fees, and work in the best interest of your client. You can find the best vendors for things like credit reports, title insurance and closings, leads, mortgage apps and other services that will benefit your clients and your business. NAMB gives you the opportunity to be certified in your profession. The Certified Residential Mortgage Specialist (CRMS) and Certified Mortgage Consultant (CMC) certifications give you an advantage over your competition and credibility with your clients. These designations are only available to NAMB members and show you as a leader in the industry. The designations give you a real advantage over your bank and credit union local competition, and show you are the Mortgage Professional. Membership in NAMB will benefit you in so many ways. NAMB will keep you educated, trained and well-informed on everything happening in the mortgage industry. It will be the best business decision you make all year! Help NAMB protect your industry. Let NAMB help you grow your business and have fun in the mortgage industry.

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l HR 2570: The Mortgage Fairness Act of 2017: The removal of broker company compensation from the three percent points and cap fees. l S 1: The “Tax Cuts & Job Act” l S 1753: The “SAFE Transitional Licensing Act” l S 2155: The “Economic Growth, Regulatory Relief, and Consumer Protection Act” l HR 916: The “Risk Management & Homeowner Stability Act of 2017” l HR 1422: The “Flood Insurance Market Parity & Modernization Act”

By George W. Burkley III, CRMS

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First of all, thank you to Michelle Velez, Roy DeLoach, and the entire NAMB Government Affairs Committee this past year! They worked diligently to review every bill and do everything possible to limit unintended consequences for the consumer and our industry. Thank you for unpaid time you gave, the battles you fought, and the change you made. NAMB President John G. Stevens has a threefold vision for the coming year: Educate, Advocate and Empower. Running step and stride with John, the action plan for the Government Affairs Committee is a two-pronged approach. Communication is how we will fulfill the President’s Education piece. This is where, I believe, we can significantly improve. To this, I take full responsibility. We can do better. We will present consistent video updates. We will be timely with news articles, and the goal is first to press on a few industry breaking items. NAMB has always been the voice protecting the mortgage loan originator. We simply failed to share our wins. The second prong is being even better advocacy through relationships. We will be very focused and intentional about the relationships we are investing in for 2018. The four groups we are looking to continue nurturing are: Our family at the MBA, and our friends on Capitol Hill, the Consumer Financial Protection Bureau (CFPB) and the National Association of Realtors (NAR). Within those two overriding goals, we have six bills and two revised final rules that are top priority, including:

NAMB’s Membership Minute: December 2017

N A M B

P E R S P E C T I V E

Why Do I Need NAMB? NAMB.org … JOIN TODAY! l l l l l l l l

NAMB Testifies Before Congress NAMB Works With the CFPB NAMB Participates in Multiple Regulatory/CFPB Panels NAMB Webinars Full-Time NAMB Lobbyist on Capitol Hill NAMB Protects Your Business NAMB Forms Industry Coalitions NAMB Education

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For detailed information, visit NAMB.org.

Are You an NAMB Lending Integrity Seal of Approval Holder? (No additional costs to NAMB members)

How to Apply for your National Lending Integrity Seal LendingIntegrity.org Click on EARN the Seal NAMB members ONLY–Log in to the Lending Integrity site with your NAMB User ID and Password (If you do not know your User ID and Password, type in your e-mail and click log-in and the system will send you a password. If you have any issues, please call (972) 758-1151 or e-mail Membership@NAMB.org). Lending Integrity Requirements The Lending Integrity Seal of Approval is awarded only to mortgage originators who meet specific requirements. To earn the privilege to display the Seal, mortgage brokers and loan officers must: l Be an NAMB member l Meet the requirements of the SAFE Act l Pass a national criminal background check l Attend eight hours (or equivalent) of professional development education each year l Attend two hours (or equivalent) of ethics training every other year or each license renewal cycle l Provide professional references l Subscribe to NAMB’s Best Business Practices l Agree to NAMB’s Code of Ethics l Must be renewed annually

It’s really simple … go to NAMB.org and join today! PS … after you join, make plans to join us in Florida at NAMB Focus: 2018 Sales and Marketing Conference, Feb. 15-17 at the Hilton Sandestin Beach Golf Resort & Spa in Miramar Beach. George W. Burkley III, CRMS is Owner and Founder of Goshen, Ind.-based American Mortgage & Financial Services, and NAMB Director, as well as Chairman of the Membership Committee. He may be reached by email at George.Burkley@NAMB.org.

Could VA Loan Limits Go Away? By Ken Bates

There is a bill in the House of Representatives (HR 815) that has proposed that VA loan limits go away. With this change, veterans with full entitlement could get 100 percent financing on any loan amount. This could have a massive impact for veterans in high-cost areas, especially the 66 counties in 12 states that saw their maximum entitlement slashed in 2015. More than 1.75 Million veterans (eight percent of all U.S. veterans) live in those counties and would have increased access to their benefit thanks to this bill. The law makes zero changes for loans under $144,000. But for loans over that amount, the veteran’s entitlement would be equal to 25 percent of the base loan amount. The entitlement would no longer be based on a county line, it would be purely based on the loan amount. Current VA county limits are set by the Federal Housing Finance Agency’s limits, which are capped at $636,150 in 2017. For parts of the country, this essentially denies a veteran access to their VA benefit. For example, in Manhattan, N.Y., a one-bedroom, one-bath studio sells for over $650,000 and two bedroom units start over $1 million. More than 35,000 veterans live in Manhattan, and this would get them legitimate access to their VA benefit. In other areas, crossing a county line can mean a major drop in buying power. For example, a veteran currently buying near Charlotte Hill, Md. needs to know if they’re in Charles County Md. ($636,150 limit) or Saint Mary’s County, Md. ($424,100 limit). With this change, that same veteran wouldn’t need to worry about which county they were in, and could focus their purchase decisions on other more critical matters to their family. For veterans with full entitlement, regardless of if it’s first time use or subsequent use, this truly means they could go zero down on any purchase price. For veterans who have reduced entitlement (currently have another active VA loan, or have lost entitlement due to a previously compromised VA loan) they can still purchase, but would need a downpayment. It’s some funky math, but the downpayment needed comes out to exactly 33.4 percent more than the amount of their previously used entitlement. For example, if a veteran had a previous VA foreclosure and lost $30,000 of entitlement, but wanted to purchase an $800,000 home. They would need a $40,000 downpayment (1.334 x $30k) and get a $760,000 VA loan. The bill is sponsored by Rep. Lee Zeldin (NY District 1) and was forwarded by subcommittee to full committee on Oct, 25, 2017. Ken Bates of San Diego-based Military Home Loans is NAMB’s VA Committee Chairman. Ken, known as “Mr. VA Loan,” retired as a Commander after 20 years in the Navy. He may be reached by phone at (619) 422-5900 or e-mail Ken@MilitaryHomePrograms.com.

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NAMB Certification Committee Update By Linda McCoy, CMRS

We will be having our first big NAMB event in 2018, kicking things off Thursday-Saturday, February 15-17 with the NAMB Focus: Sales and Marketing Conference. Forget the cold, the ice and the snow and head South for the Hilton Sandestin Beach Golf Resort & Spa in Miramar Beach, Fla. Visit NAMB.org for more information on this event. I have a new mission this year as head of the NAMB Certification Committee. We will be having a class for members who want to take the Certified Residential Mortgage Specialist (CRMS) Certification Test in Miramar Beach as part of NAMB Focus in February. Originators who get their certifications from NAMB join an elite group of professionals in the U.S. who have this prestigious designation. We are also offering the first part of the new certification for VA. NAMB is all about educating it members. I would like to see everyone who does not have a certification who is reading this article to come to NAMB Focus in February and take the CRMS course and/or sign up for the new VA certification. NAMB is always trying to create new events to help increase your business and give value to its members. Being certified will help you get more business. NAMB offers the General Mortgage Associate (GMA) designation, NAMB’s entry-level credential for individuals who want to demonstrate the minimum level of knowledge in the industry; the Certified Residential Mortgage Specialist (CRMS), NAMB’s mid-

level credential for mortgage professionals who want to commit to a higher standard of professional practice; and the Certified Mortgage Consultant (CMC), NAMB’s most advanced credential for mortgage professionals who want to demonstrate the highest level of professionalism. Did you know that on the NAMB Web site, NAMB.org, you can search for an NAMB member in your state. All members are in alphabetical order, except the professionals who have certifications. They show up first at the top of the list. When someone from your state is looking for a Mortgage Originator to give business to, who do you think they would call? They would call the person with a certification because they know that individual has spent their time learning more about their profession. That person cared enough to go the extra mile to study and seek the knowledge to become a true professional in their field. Spend a little time with us at NAMB Focus in February. This could be the push you need to send you to the top in your market.

Linda McCoy, CMRS of Mobile, Ala.-based Mortgage Team 1 Inc. is a member of the NAMB Board of Directors, as well as NAMB Certification Committee Chair. She may be reached by e-mail at Linda.McCoy@NAMB.org.

T H I S

F E B R U A R Y

NAMB Focus: Sales and Marketing Conference Thursday-Saturday, February 15-17, 2018

NAMB Focus will feature sales and marketing-focused breakout sessions, a large exhibit hall and plenty of opportunities to network and share ideas with fellow mortgage professionals! In addition, NAMB is excited to announce the NAMB Focus Keynote Speaker, The King of Sales, Jeffrey Gitomer. As a New York Times Bestselling Author, Leadership and Sales Guru, Jeffrey gives public and corporate seminars, runs annual sales meetings, and conducts live and Internet

training programs on selling, customer loyalty, and personal development. He has presented an average of 120 seminars a year for the past 10 years. Some of his customers include Coca-Cola, DR Horton, Caterpillar, BMW, Hilton, Wells Fargo Bank, Blue Cross-Blue Shield, Hyatt Hotels, IBM, AT&T, and hundreds more. Don’t miss this opportunity to set your goals, learn new sales techniques and meet the country’s top mortgage professionals at NAMB Focus ... register today!

For more information, visit NAMB.org.

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is one of the three pillars that the PRMI Giving Network is built on; feed, serve, and educate. Our goal is to help transform communities and create positive change. And we know providing basic school supplies to those who don’t have them is one step towards helping these children create a brighter future for themselves and our country.” Study: Discrimination Still Seeps into Facebook Housing Ads

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Social media’s most influential site is failing to enforce its own ban on advertising that encourages discrimination in housing, credit or employment. The non-profit news source ProPublica released a study that showed how it was about purchase dozens of rental housing advertisements on Facebook with the request that they not be shown to specific demographics including African-Americans, Jews, people interested in wheelchair ramps, Spanish speakers, expatriates from Argentina and mothers with high school-age children. All of these groups are protected under the Fair Housing Act, but ProPublica said its advertisement requests were approved in a matter of minutes. ProPublica also sought to publish a Facebook rental advertisement that sought deny rental housing to those “interested in Islam, Sunni Islam and Shia Islam.” That took a longer approval time, getting online after 22 minutes. “This was a failure in our enforcement and we’re disappointed that we fell short of our commitments,” Ami Vora, Vice President of Product Management at Facebook, said in an e-mailed statement. “The rental housing ads purchased by ProPublica should have but did not trigger the extra review and certifications we put in place due to a technical failure.” Vora also claimed that Facebook’s successfully flagged millions of ads” in the credit, employment and housing categories and would begin requiring selfcertification for advertisements in all categories that choose to exclude an audience segment. “Our systems continue to improve but we can do better,” Vora said.

Servicers Seek to Build Consumer Interest in REO Properties

Mortgage servicers are increasingly working to make real estate-owned (REO) assets a more appealing and viable option for consumers, according to the inaugural Default Servicing Survey released by Altisource Portfolio Solutions. Eighty-two percent of the 200 mortgage default servicing professionals polled for the survey ranked their investment in improving the condition of their REO asset portfolio among the most effective strategies for bring more consumers to the REO market. Ninety-three percent of those surveyed said their company was investing to improve the condition of REO properties under management, while 62 percent said their company was making a significant investment in this area. Separately, 76 percent of servicing professionals surveyed pointed to offering financing options for REO, such as FHA 203(k) program, to make purchasing of REO assets more achievable. “For many homebuyers, access to conventional financing and move-in ready condition are requirements to purchase their next home,” said Min Alexander, Senior Vice President of Real Estate Services at Altisource. “Distressed properties, including REO, have historically been marketed in as-is condition, at times limiting the potential buyer pool. Servicers are changing this by increasing investments to maintain or improve the condition of these properties, attracting more owneroccupant homebuyers.” Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of: NMP News Flash column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, The Holiday Season is here! I hope you all are able to enjoy some time with family and friends after a busy and successful 2017. December always seems to be a time of reflection on the year that was and a time to look forward, with new goals, new challenges and (hopefully) optimism about what lies ahead in the coming year. NAMB+ is extremely excited and optimistic about 2018! We already have several new Endorsed Providers lined-up to rollout early in the New Year, along with a new website, and we plan to significantly increase the number and variety of products and services that are available to you, as a NAMB Member, at deep discounts. NAMB+ was created to help NAMB enhance its Member benefits and to serve as a resource for mortgage professionals looking to grow their business, become more

efficient and, of course, save money. If you already work with one or more of our tremendous Endorsed Providers listed below, thank you, and please feel free to send us a note or video clip about your favorite EP that we can share on social media or the NAMB+ website! Have a very safe and happy Holiday Season, and a terrific New Year! Sincerely,

Mike DeSantis President, NAMB+, Inc. l mike.desantis@namb.org

See below for a complete listing of the current NAMB+ Endorsed Providers and visit NAMBPlus.com for more information. Full-service mortgage credit reporting company serving the nation’s financial community. Avantus provides custom mortgage credit reports, fraud and compliance solutions, and innovative lead generation products available exclusively to Avantus customers. NAMB members receive a discount off Brokers Compliance Group compliance support programs.

CalSurance® offers competitively priced Professional Liability Insurance for NAMB members. Multiple coverage options and an easy application process are available. eEndorsements promotes your success by making it easy to capture customer reviews, control your content, and publish your testimonials where they matter to drive new business. Automatically share your reviews on Facebook, Twitter and Linkedin. Easily invite your clients to share reviews to sites like Yelp and Zillow. eEndorsements offers a 34% discount to NAMB Members. MassMutual Disability Income Through an arrangement with Massachusetts Mutual Life Insurance Company (MassMutual), NAMB members have an opportunity to apply for individual disability income insurance (DI) at discounted rates. MortgageHippo Swift allows loan originators of all sizes to deliver a modern borrowing experience, significantly improve

borrower conversions, reduce origination costs and integrate with other innovative technologies in the mortgage industry. NAMB members will receive a 25% discount. MySMARTblog.com The way your prospects think has changed and that is where the massive shift occurred. At MySMARTblog.com we build a complete, dynamic and Profitable Online Presence™ in order to protect you and your valuable repeat and referral business from your competition. PreApp 1003 Founded in 2015, Houstonbased PreApp 1003 was created to fill a growing need for mortgage loan originators to easily and securely prequalify mortgage prospects from the convenience of their mobile devices. Sarma gives you access to their extensive resources including: merged reports from the three top credit bureaus, CreditXpert tools, AVM Reports, SocialValidate, TRV Verification, Interface with over 30 LOS, Fannie and Freddie connection, Verification of employment/deposit and much more.

If you want a social and mobile marketing strategy that gets noticed contact Social5 today for a FREE consultation and demo and to receive your NAMB member discount pricing SYNCRO connects mobile salespeople to their office website leads. NAMB Members receive a 10% discount off regular prices for monthly unlimited SYNCRO Web Chat packages. The Bond Exchange is a national surety agency specializing in providing mortgage license bonds to thousands of mortgage professionals across the country. USA Business Lending, Inc. USA Business Lending is your complete resource for everything commercial lending. With our extensive network of funding sources and specialized loan programs, you can be sure that your clients have access to the most competitive rates and terms available on the market.

NAMB Members will receive a Twenty-Five Percent (25%) discount off of the regular price with their NAMB Membership. Simplii VOIP business phone solutions include all the features and functionality of a high end business phone system without the high costs. We offer all NAMB members a 10% discount off their phone services.

NAMB PLUS Login Instructions Username = Member Number Password = First initial of your ﬁrst name capitalized and your last name with the ﬁrst letter of the last name capitalized (example = JStevens)

If you are not a NAMB member please visit NAMB.org and join today to gain access to NAMBPLUS.com and the many beneﬁts NAMB members receive!

MONDAY Brought to you by

Master the Markets with Barry Habib Recap of key economic events that took place over the past week and a look ahead to events that will potentially impact interest rates in the housing market. Airs every Monday at 7 a.m. For more information on PRMG, visit prmg.net/wholesale

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Godfather The Mortgage Godfather Ralph LoVuolo Sr., “The Mortgage Godfather” shares his unique and innovative approach to mortgage origination. You better become a follower or else. It’s an offer you can’t refuse! Airs every Monday at 11 a.m.

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COMING IN JANUARY 2018 ... HOMEOWNERSHIP

HEROES

The Battle to Increase Military Homeownership

DECEMBER 2017 n National Mortgage Professional Magazine n

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National Mortgage Professional Magazine’s 40 Under 40 The 40 Most Influential Mortgage Professionals Under 40

n our eighth annual “40 Under 40” feature, you will find a list of the top mortgage professionals under the age of 40, as voted on by their peers, who exemplify professionalism and top production in today’s housing market. Despite the rough waters of the U.S. economy and the ever-shifting landscape known as the mortgage industry, these 40 professionals have persevered in a time of regulatory uncertainty. In assembling this list, we at National Mortgage Professional Magazine took some criticism when we began this endeavor. Many felt a list of this nature ignored many, and others felt that a list of this type is a “Thing of the Past,” while some even cited age discrimination, but we firmly stood by our decision to assemble this group. Like their industry pioneers before them, these individuals are the ones who carried the torch of professionalism in the year 2017 and beyond. We’d like to congratulate all of the following individuals named to our “40 Under 40” list for 2017—in no particular order but alphabetical—and thank all the nominees for their participation in our “40 Under 40: The 40 Most Influential Mortgage Professionals Under 40” feature.

Ben Anderson Executive Loan Advisor and Branch Manager RPM Mortgage, a Division of LendUS Orange County, Calif. BenAndersonGroup.com Ben Anderson is a Branch Manager at RPM Mortgage, a division of LendUS and a top-ranked mortgage professional. He has funded $1.4 billion in mortgages since 2010, including $242 million in 2016 alone. Since 2011, Ben has assisted more than 2,500 families.

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Mortgage Loan Originator United Northern Mortgage Bankers Ltd. Bronx, N.Y. UnitedNorthern.com Mark S. Fisher has been a great example to the next generation of mortgage professionals. Entering the mortgage business at the age of 23, Mark has consistently seen double-digit growth. At 29, he is on track to end 2017 with $65 million in volume. A 2010 Fordham University Gabelli School of Business Alumni, Mark graduated during one of the worst economic periods of our lifetime. Since then, through his work ethic and strategy, Mark has served countless families achieve their goals of homeownership.

n National Mortgage Professional Magazine n DECEMBER 2017

Mark S. Fisher

Executive Vice President WebMax LLC Turnersville, N.J. WebMaxCo.com Kelcey Brown spearheads strategic initiatives, acting as the key advisor to the president on critical changes in the competitive landscape and digital mortgage technology market. He has 10-plus years of experience with mortgage and real estate technology. He is a Navy veteran.

Chief Marketing Officer United Wholesale Mortgage Troy, Mich. UWM.com Sarah DeCiantis leads UWM’s marketing, public relations, advertising, social media, creative and CRM that have established the company as the gold standard of the wholesale mortgage industry. Sarah has been a key driver behind UWM’s strategic approach to marketing, transforming it from sales support to a driver of sales growth. She spearheaded the launch of UWM’s new industrychanging Web site and introduced the Marketing Toolbox to help brokers.

MAGAZINE’S

Kelcey Brown

Sarah DeCiantis

NationalMortgageProfessional.com

Director of Correspondent Lending Paramount Residential Mortgage Group Inc. (PRMG) Corona, Calif. PRMG.net There aren’t many who have worked at Countrywide, Bank of America and PennyMac that have achieved as much as Jay Boand. His operations background, combined with his ability to effectively communicate make him a powerful leader.

Area Sales Manager Carrington Mortgage Services Anaheim, Calif. CarringtonWholesale.com Adam Cunningham focuses on the broker relationship. Training, development and education are what Adam brings to every broker he works with. He has 12 years in the industry … dedication drives his success. Adam is a graduate of Cal State Long Beach and is a Circle of Excellence winner. With his unique approach, Adam effectively and successfully runs Carrington’s top West Coast inside sales team.

PROFESSIONAL

Jay Boand

Adam Cunningham

MORTGAGE

Broker of Record Magnum Opus Federal Corporation Philadelphia MagnumOpusFederal.com Christian Best is an award-winning Mortgage Broker, recognized within his industry for exceptional expertise, strict ethical standards and delivering unmatched benefits to his clients. Respected as a leader in his community, he partakes in philanthropic endeavors to advance people of color.

Founder The Cooksey Team Dallas, Texas CookseyTeam.com Michael Cooksey founded The Cooksey Team, one of Mid America Mortgage’s most successful branches. With 16 years of experience and nearly $1 billion in funded loans with Mid America, Michael understands how to execute a successful mortgage transaction. Utilizing The CORE Training methodology, Michael coaches his staff and other mortgage and RE professionals to become top producers. Cooksey Team LOs average six closings per month (industry average is 2.4) and $250,000 annually. Total expected branch volume for 2017 is $300 million. NATIONAL

Christian Best

Michael Cooksey

Vanessa Frisch

President Vantage Mortgage Group Inc. Lake Oswego, Ore. VantageMortgageGroup.com Andy W. Harris, CRMS is President of Oregonbased Vantage Mortgage Group Inc. Andy strongly encourages all Mortgage Loan Originators to embrace self-education and independent origination. He believes now is the best opportunity in history for the wholesale lending channel.

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Senior Mortgage Banker Wintrust Mortgage St. Paul, Minn. WintrustMortgage.com/Library/Get/Profile/1312/Profile Vanessa Frisch has been a mortgage banker for 12 years, starting at 20 years of age. Having been with Wintrust for more than eight years, she is the face of Millennial originators, having closed more than $30 million. She was a featured speaker at Sales Mastery 2017 and special nominee by Todd Duncan. She is also a Top President’s Club member at Wintrust.

Andy W. Harris, CRMS

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John P. Hamameh Chief Compliance Officer/General Counsel Class Appraisal Inc. Troy, Mich. ClassAppraisal.com John P. Hamameh has been in the real estate/mortgage space since he was 16-years-old, and with Class Appraisal since 2012. On top of being a licensed attorney, John is also a licensed Real Estate Broker, which gives Class Appraisal the unique perspective of wanting deals to get closed, but doing so compliantly. John was named Top Corporate Counsel by Dbusiness Magazine and is always centering his focus in on how Class Appraisal can create more efficiency and expediency, but doing so while navigating the legislative confines of a highly regulated mortgage industry.

Kelly D. Haney Area Manager Mortgage Financial Services Flower Mound, Texas KellyDHaney.com Kelly D. Haney began his multi-faceted career in the mortgage industry in inside sales. He quickly advanced into loan origination and sales management, which enabled him to gain excellent skills in loan transactions, client relations, team leadership, and training and development.

Colton Hansen Vice President of Business Development TRK Connection Salt Lake City TRKConnection.com Colton Hansen is responsible for leading TRK Connection’s new business efforts and client/vendor relationship management. Prior to TRK, Hansen was Manager of Vendor Relations for SSM Hub and worked in business development for Salt Lake Citybased Primary Residential Mortgage Inc.

David J. Hosterman Branch Manager/Loan Officer Castle & Cooke Mortgage LLC Denver CastleCookeMortgage.com/Loan-Officer/DavidHosterman Recognized as his company’s top-producing loan officer from 2014-2016, David J. Hosterman is currently the top Loan Officer for 2017. In 2016, he closed 288 units for $76,426,994. David has comanaged the top branch for the company since 2014.

Alex Jimenez Branch Manager Hancock Mortgage Partners LLC Franklin, Tenn. HancockMortgage.com/AJNashville Alex Jimenez is focused on serving veterans and helping them navigate through the mortgage process. He has also dedicated himself in training others across the nation as an Instructor for Military Mortgage Boot Camp.

Kyle Kamrooz Founder and Chief Operating Officer Cloudvirga Irvine, Calif. Cloudvirga.com Kyle Kamrooz has 18 years of executive experience in mortgage lending. Before founding Cloudvirga, he was Executive Vice President of Skyline Home Loans. He also founded Sage Credit, which he built into a nationwide mortgage company that processed $7 billion-plus in loans annually.

Erica LaCentra Marketing Manager RCN Capital LLC Glastonbury, Conn. RCNCapital.com Included on last year’s list of the “Next 40 Mortgage Professionals to Watch,” Erica LaCentra joined RCN Capital in 2013, and her efforts have rapidly expanded RCN’s customer base and elevated the company to a national brand. Erica is a current member of AAPL’s Education Advisory Committee which serves as a vital resource, assisting AAPL leadership in the planning, producing and maintaining of comparable and uniform information specific to the private lending industry. She has also had multiple teaching/speaking roles at industry trade shows and events.

Senior Loan Officer Paramount Residential Mortgage Group (PRMG) Doral, Fla. WilliamLedesma.com William is a seasoned mortgage professional specializing in Florida’s ever-changing residential real estate arena. South Florida has been home from the beginning for William, and helping others own their home there is more than a job, it’s a labor of gratitude. “Experience should be a resource of wisdom for those around you,” this is William’s motto. In such regard, he’s always willing to help others with challenging files, thus becoming a key contributor within his office and the local lender community.

Steve Levine Vice President, Divisional Retail Production Paramount Residential Mortgage Group Inc. (PRMG) Davie, Fla. PRMG.net Steve Levine is one of the most successful retail platform builders in the industry today. He has created a legacy of successful operators, that follow his principles of profitability and efficiency, thus creating a loyal following of colleagues daily. As a former owner of a regional mortgage banker in South Florida, he learned how to run a business. His business acumen, along with his easy-going demeanor, allow him to obtain, train and retain dozens of incredible branch managers.

Co-Founder and Chief Operating Officer Matic Sherman Oaks, Calif. MaticInsurance.com Ben Madick is Co-Founder of Matic, a digital insurance agency that helps lenders and LOs better integrate homeowner’s insurance into the lending process. Matic provides bindable quotes from highly-rated insurance carriers in seconds for faster loan closings.

Reno Manuele President Neighborhood Loans Lombard, Ill. NeighborhoodLoans.com Reno Manuele serves as President of Neighborhood Loans. As the company continues its emergence in the residential lending community, the vision Reno established has resulted in higher customer satisfaction rates, more educated clients and a foundation for inevitable growth. Reno’s industry contributions include incorporating an intuitive marketing approach by implementing industry leading technologies. This has enabled Loan Officers and Realtors to better service the needs of their customers, clients and referral partners.

Laura Martell Marketing Manager Mountain West Financial Inc. Redlands, Calif. MWFInc.com As marketing manager for Mountain West Financial Inc. (MWF), Laura Martell oversees advertising, Web sites, social media and brand development. As an industry veteran, Martell understands everything from retail to wholesale and sales to operations; and earned a bachelor’s in fine arts degree in graphic design from Cal Poly Pomona.

Professional Magazine n DECEMBER 2017 P R O F E S S I O N A L NationalMortgageProfessional.com M A G A Z I N E ’ S 4n0National U N DMortgage ER 40

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Benjamin Madick

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Account Executive REMN Wholesale Newport Beach, Calif. REMNWholesale.com Altaf Lalani is one of the most hard-working people at REMN. With every dip the industry takes, he perseveres and thrives. His unique ability to connect to the broker community and help educate them is what makes him so successful. Lalani joined REMN Wholesale in 2015 and quickly rose to be in the top five for sales, two years in a row. Located in Newport Beach, Calif., Altaf’s region extends much further to the West Coast and beyond.

Marketing Manager Class Appraisal Troy, Mich. ClassAppraisal.com Cherie Lynch was born and raised in Detroit. She spent many years in the fashion industry, traveling throughout the United States. She returned to Michigan to attend Wayne State University and get her degree in fine arts. Cherie is the engine that drives Class Appraisal’s marketing efforts. Cherie does a great job of telling the Class Appraisal story through her posts, articles and blogs.

NATIONAL

Altaf Lalani

Cherie Lynch

Bob Melone Loan Officer radius financial group inc. Norwell, Mass. BobMeloneTeam.com Bob Melone entered the mortgage lending industry 13 years ago. Before joining radius, Bob served as a combat medic in Afghanistan in support of Operation Enduring Freedom in 2003. He currently resides in Hanover, Mass. with his wife

Branch Manager New American Funding Greenwood Village, Colo. AaronNinness.com Aaron Ninness started in the mortgage industry when he was 16. He is a top producer and runs the top branch for New American Funding. He has a balanced life for his family and activities. He is a prolific speaker and has a YouTube channel for educating the consumers on homeownership. He also teaches the mandatory classes that the Colorado Department of Regulatory Agencies (DORA) requires for Colorado Realtors.

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Aaron Ninness

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Bryan Miller Assistant Vice President, National Accounts United Wholesale Mortgage (UWM) Detroit UWM.com Bryan Miller is United Wholesale Mortgage’s ambassador and key support system to the company’s highest producing clients. His extensive mortgage knowledge and overwhelming success as one of UWM’s all-time top producing Account Executives gives Bryan the tools to successfully assist key account clients daily. Internally, Bryan provides ongoing coaching to UWM’s Account Executives, with a focus on growing their business and creating strong relationships with their broker and correspondent partners. Bryan is well-positioned to help UWM’s clients successfully achieve their business goals because he is a repository of the industry’s best practices.

Brett Mills Producing Area Manager Academy Mortgage Corporation Layton, Utah AcademyMortgage.com/LO/BrettMills Brett Mills is a recognized industry leader and Duane Shaw Achievement Award recipient, Academy Mortgage Corporation’s highest honor given for professional excellence and community service. He serves on several industry boards within Utah and is a Falcon in the Air Force.

Andres J. Munar Co-Founder Keystone Alliance Mortgage State College, Penn. KeystoneAllianceMortgage.com Andres J. Munar started in the industry in 2006. He leads a team of amazing professionals set to close more than 200 transactions in 2017. He and his team share a servant leadership vision which allows them to execute at a high level. As Co-Founder of Keystone Alliance Mortgage, Andres and his business partner have built a company with 20 employees helping, more than 500 families in the past three years.

Jim Paolino Chief Executive Officer and Founder LodeStar Software Solutions New York, N.Y. LodeStarSS.com Jim Paolino founded LodeStar Software Solutions in 2013 at 27-years-old. He is also the Chief Sales Officer at Res/Title, a national title agent, in addition to serving as LodeStar’s Chief Executive Officer. He was also a member of 2016’s Top 40 under 40 in National Mortgage Professional Magazine.

Katy Parsons Mortgage Advisor Finance of America Mortgage Portland, Ore. FOAMortgage.com/KParsons Katy Parsons has been originating for five years, and in that time, has made quite an impact on her clients, but also the industry. She instantly brings levity to any situation while representing a level of professionalism the industry desperately needed. Katy revived the Mortgage Revolution conference, which showcases leading mortgage technology while raising money for charity, and coordinates similar industry events around the country. She’s featured on shows like The National Real Estate Post … stay tuned to see what’s next!

Peter Pescatore Chief Operating Officer Jet Direct Mortgage Bay Shore, N.Y. JetDirectMortgage.com Peter Pescatore is an experienced Chief Operating Officer with a 20-plus-year history in the banking industry. Skilled in all aspects of the residential mortgage market, he is a strong business development professional with a bachelor of science from St. Joseph College. Peter is a direct endorsement underwriter and licensed Mortgage Loan Originator. He has been a key factor in the incredible recent growth of Jet Direct Mortgage.

Cari (Burris) Pinkert Chief Operating Officer Nationwide Appraisal Network Oldsmar, Fla. Nationwide-Appraisal.com Under Cari (Burris) Pinkert’s leadership, Nationwide Appraisal Network (NAN) has emerged as one of the top appraisal management companies (AMCs) in the mortgage business. Cari works to improve performance through technology that drives efficiency and provides a competitive advantage to clients and business partners.

John G. Stevens President NAMB Highland, Utah NAMB.org John G. Stevens is the Vice President of National Business Development for Paramount Residential Mortgage Group Inc. (PRMG). His LinkedIn profile is in the top five percent viewed worldwide, and he has been awarded Mortgage Professional of the Year by NAMB and the Utah Association of Mortgage Professionals (UAMP). John is an Honorary Colonel in the PGPD and a Paul Harris Fellow award winner for Rotary.

Ryan Stewman Founder/CEO/Hardcore Closer Break Free Academy Addison, Texas HardcoreCloser.com Ryan Stewman, the “Hardcore Closer,” a five-time best-selling author, podcaster and blogger is infamous for rapidly growing sales via powerful advertising and marketing. A salesman turned Chief Executive Officer, Ryan helps high-net-worth performers adjust their business plans resulting in windfall profits.

Joseph R. Villani

Certified Mortgage Planner Finance of America Mortgage Folsom, Calif. TeamScottLoans.com Evangeline Scott is known for outstanding service. You can count on her to look out for your interests and keep you informed throughout the process. Her experience, honesty and hands-on approach shines through with each client she serves.

Senior Vice President of Correspondent Sales The Money Source Melville, N.Y. TheMoneySource.com Joseph R. Villani arrived at The Money Source with a background in financial services and a clientcentric approach. He quickly rose to be a sales leader for one of the fastest-growing Fintech companies by increasing correspondent sales by over 30 percent.

Laura Kay Sheely Vice President of Mortgage Production MidwestOne Bank Home Mortgage Iowa City, Iowa MidWestOne.com Laura Kay Sheely has worked in mortgage lending since early 2000. Her success has come from being highly professional, personally-driven and by leading teams of producers to reach their own growth goals. She serves on the Iowa Mortgage Association Board as the President-Elect.

Justin Wiseman Associate Vice President and Managing Regulatory Counsel Mortgage Bankers Association Washington, D.C. MBA.org Justin Wiseman is Associate Vice President & Managing Regulatory Counsel for the Mortgage Bankers Association (MBA). He oversees legal/regulatory issues and manages MBA’s litigation coordination function. He has been commended for his leadership on the development of the MBA One Mod and TCPA campaigns. Prior to joining MBA, he clerked in Federal District Court in the Middle District of Tennessee. He attended Emory Law School, and previously worked with the Center for Strategic and International Studies on European and Transatlantic security issues.

Professional Magazine n DECEMBER 2017 P R O F E S S I O N A L NationalMortgageProfessional.com M A G A Z I N E ’ S 4n0National U N DMortgage ER 40

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President Mortgage Coach Tampa, Fla. MortgageCoach.com Joe Puthur’s professional contributions put financial security and affordable homeownership within reach for millions of borrowers across all economic backgrounds, and has propelled hundreds of originators to career success. His charitable efforts have helped alleviate hardships for thousands of individuals nationwide.

NATIONAL

Joe Puthur

The Next 40 Mortgage Professionals to Watch …

Title

Aaron Anderson

Chief Executive Officer

Dr. Ian Ashton

Branch Manager

Christopher Brower

Senior Mortgage Banker

Zachary Dawson

Director of Credit Risk

Matt Demorest

Owner

Chris DeRosier

Mortgage Loan Consultant

Michelle Dugan

Loan Originator

Mike Eshelman

Vice President of Marketing

Derek Fertig

Branch Manager

Corey Gee

President

Michael Gonzales

Branch Manager

Open Mortgage

Chasity Graff

Owner

LA Lending LLC

Jordan Higgins

Vice President, Correspondent Sales

Nick Hunter

Chief Operating Officer

River City Mortgage LLC

Dan Hutzelman

Chief Executive Officer

River City Home Loans

Bob Jones

SVP, Alternative Mortgage Sales Channels Manager

Brian W. Kempf

Vice President-Senior Loan Officer

Juliana Krijan

Chief Operating Officer

Eric Kulbe

Regional Manager

Micaela Lumpkin

Vice President and Head of Term Loans

Lisa Lund

President

Jim Mitzel

Branch Partner

Stacy Mohr

Senior Vice President of Capital Markets

Michael Most

Senior Loan Officer

Amber Parr

Mortgage Loan Originator

Christopher R. Picone

Owner/President

PRS Capital Group LLC

Jason Price

Product Manager

ReverseVision

James Prince

Vice President of Sales

Hailey Rice

General Counsel and Chief Compliance Officer

David Spektor

Chief Technology Officer

Staci Stanley

Mortgage Consultant

Ed Stojancevich

Loan Officer

Scott Tennant

Branch Manager

Jason Turner

Area Vice President

Craig Ungaro

Chief Operating Officer

Ariana K. Veloz

Branch Manager

Brandy Whitmire

Branch Manager|Mortgage Loan Originator

Troy P. Williams

Branch Manager

David Yurovchak

Sales Manager

Adam Zima

President

DECEMBER 2017 n National Mortgage Professional N A T I O Magazine N A L MnONationalMortgageProfessional.com RTGAGE PROFESSIONAL

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Due to the numerous submissions we received for the “40 Under 40” list, there are those who are making serious waves in the industry who could not be overlooked. They, like those on the “40 Under 40” list, will be leaders in the industry for years to come, so keep an eye out for the following mortgage professionals as they continue to shape the industry:

Company Accumatch Property Tax Intelligence Caliber Home Loans Jersey Mortgage Company Fannie Mae HomeSure Lending John Adams Mortgage Movement Mortgage First Direct Lending LLC Fairway Independent Mortgage Corp. Perennial Funding LLC

Verus Mortgage Capital

BBVA Compass George Mason Mortgage LLC Jungo Guild Mortgage CoreVest Finance Lund Mortgage Team Inc. Primary Residential Mortgage Inc. Mountain West Financial Inc. Chase The Mortgage Firm

1st Financial Inc. Village Mortgage Company LodeStar Software Solutions Fairway Independent Mortgage A&M Mortgage Group Hometown Lenders LLC AMCAP Mortgage-N.Houston Branch AnnieMac Home Mortgage Loan Simple Inc. HomeBridge Financial Services Inc. Skyline Home Loans loan Depot Champions Mortgage

BE A HERO TO YOUR CLIENTS

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Director Duel and Future of the CFPB

DECEMBER 2017 n National Mortgage Professional Magazine n

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By Andy W. Harris, CRMS

y the time many read this, I am sure there will be some new drama at the CFPB (Consumer Financial Protection Bureau) which appears to have finally started after the anticipated changes under the new administration. Today was the first day Mick Mulvaney showed up to work as the Interim Director of the CFPB as appointed under President Trump. The awkward part was that Leandra English was also appointed as the Acting Director by departing Director Richard Cordray. I can only imagine what it must be like there inside the walls of the Bureau. As many know by now, English sued Mulvaney over his appointment, there were awkward e-mails about who is the boss to staff, and likely with this break in leadership employees of the Bureau have no idea what to do. What’s even more interesting is the press release where Mulvaney put nearly everything on a freeze over the next 30 days to examine the CFPB’s practices. Now keep in mind, this is while working two jobs as both the Director of the Office of Management and Budget (OMB), and now, the Acting Director of the CFPB. While many in our industry believe in less regulation, it’s really the unintended consequences to consumers and businesses where lending and operations can be restricted as to where our concerns lie. My main concern is with the regulations that are important and very necessary to protect consumers and our industry from spiraling into the abyss most of us witnessed before the mortgage meltdown. We all need to stay involved and keep a close eye on what changes happen in the near future that will change certainly the long-term future of this industry. Section 8 RESPA (Real Estate Settlement and Procedures Act) violations are a huge issue harming the consumer. I have been concerned that there was not more attention on this by the CFPB in the past, but this attention was recently emphasized. I fear now that we’ll have a retraction and if we don’t have regulatory control over illegal kick-backs. We cannot allow this to get out of hand

and must police our own providing the harm that comes to our clients from the bad real estate, mortgage and builder companies participating in this behavior. It will be interesting to share stories about this developing topic. Are you an originator? Send your stories! To have topics considered in future editions, please e-mail me with “OrigiNation” in the Subject Line at AHarris@VantageMortgageGroup.com. These can be confidential or your name and company can be referenced if you wish. You can also join the Facebook Group by searching for “OrigiNation.” The views expressed in this article are those of the author alone and do not necessarily reflect the views or policies of the author’s employer or any organization with which the author may be affiliated.

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

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Our Heard on the Street column is a chronicle of events, changes and passages in the lives of the people and companies shaping the mortgage industry.

New American Funding Opens Santa Fe Office, Implements Black Knight’s Loss Mitigation Solution

DECEMBER 2017 n National Mortgage Professional Magazine n

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New American Funding is expanding its Southwest territory with the opening of a Santa Fe, N.M. branch, the first branch for New American in New Mexico’s capital city. Marita DeVargas, along with Loan Originator Denise Beswick, will be part of the Santa Fe team. DeVargas previously served as Vice President of Mortgage Sales with an independent lender, while Beswick owned and operated a contract loan processing company. Both have worked oneon-one with clients originating loans and bring 40 years of combined experience in financial services to the market. “We’re excited to bring New American Funding’s wide range of niche loans to Santa Fe,” said DeVargas. “Consumers have been looking for more financing options. Now New American Funding has it available for them.” Branch Manager Justin Ledoux said, “We bring a new way of doing business and fresh energy. Not only do we understand this market, from leasehold land to condos, but we have tools such as mobile apps and fast response times to better serve Santa Fe.” New American Funding has also announced the successful implementation of Black Knight’s LoanSphere Loss Mitigation solution. LoanSphere Loss Mitigation is a Web-based solution, offering workflow and decisioning capabilities, which helps mortgage servicers through the complete loss mitigation

process, while creating an audit trail to help support their compliance with changing government and investor requirements. LoanSphere Loss Mitigation also centralizes loan, property and decision data to help enhance customer service activities. Servicers’ single-pointof-contact representatives and loss mitigation specialists can view current information from a single system. “Black Knight’s solution provides New American Funding with a single operating environment for all loss mitigation activities to help us more quickly update our systems to keep pace with evolving regulatory changes,” said James Clymer, Executive Vice President of Mortgage Servicing at New American Funding. “Black Knight provided knowledgeable, helpful resources to assist us with implementing the necessary workflow to support our entire loss mitigation process. Our business is cyclical and servicers need to ask if they are prepared for the next wave of delinquencies and defaults. We are confident that LoanSphere Loss Mitigation puts us in a position to respond to the needs of our borrowers and to offer solutions in a timely and efficient manner.” Guaranteed Rate Taps ARMCO for QC Solutions

ACES Risk Management (ARMCO) has announced that Guaranteed Rate has selected the company’s quality control and

compliance software, ACES Audit Technology, for its quality control processes. “Innovative companies like Guaranteed Rate know that a strong QC platform is a key component to growth and longevity,” said Phil McCall, President of ARMCO. “They know that QC isn’t limited to a reactive approach and they can proactively use QC data—like data that’s easily available in ACES—to protect their profits and elevate their businesses. We’re looking forward to supporting Guaranteed Rate as they continue to expand their reach and grow their market share.” Headquartered in Chicago, Guaranteed Rate has approximately 200 offices across the U.S. and Washington, D.C., and is licensed in all 50 states. “We are continually looking for cutting-edge technology platforms that further enhance the company’s operations,” said Nikolaos Athanasiou, Guaranteed Rate’s Chief Operating Officer. “ACES is a state-of-the-art solution and we are happy to have the ARMCO platform up and running with our risk prevention teams.” Flagstar Bank Continues the Drive for Paperless and Expands Westward

Flagstar Bank has announced that it is now accepting eNotes to fund its warehouse lending transactions.

“This is great news for our customers,” said Joe Lathrop, Head of Warehouse Lending for Flagstar. “They’ll be able to clear their warehouse lines faster, have more accuracy and security, and best of all, originate more loans without increasing their credit line.” Once the eWarehouse line is requested and approved, an eNote is instantly delivered to Flagstar’s eVault and registered with MERs. It all happens in minutes instead of the days it takes for paper transactions. And because it’s all done electronically, there’s no concern about lost or misdirected documents. “It’s another service we can offer our customers,” Lathrop said. “We’re still in the paper business and happy to accommodate customers who want to go that route, but the industry is moving towards paperless, and we want to be in the forefront.” Flagstar has also signed a definitive agreement to acquire eight Desert Community Bank (DCB) branches in San Bernardino County, Calif., with approximately $600 million in deposits and $70 million in loans, from East West Bank along with certain related assets. “I would like to welcome the Desert Community team to the Flagstar family,” said Alessandro DiNello, President and Chief Executive Officer of Flagstar Bancorp. “We’ve been looking to acquire a high-quality deposit franchise, but they’ve been difficult to find. The Desert Community branches fit the bill. The acquisition provides lowcost, stable funding to continue growing our balance sheet. It also combines a successful

deposit franchise with a significant Flagstar presence already on the West Coast, including our Opes Advisors division and warehouse lending and home builder financing activities. Expanding our deposit franchise into California made a lot of sense because it’s a state where we already do significant business.” DCB, headquartered in Victorville, Calif., holds the number two deposit market share in the High Desert Region of San Bernardino County, the fifth largest county in California with a total population of 2.1 million. San Bernardino County has realized solid deposit growth of approximately seven percent on an annual basis since 2012.

“USA Business Lending is very proud and excited to continue working with NAMB+ to offer NAMB members additional income opportunities with our ‘Commercial Loans Made Easy’ program for mortgage professionals nationwide,” said Mike Surber, President of USA Business Lending Inc. “Our ‘Commercial Loans Made Easy’ program allows NAMB members to earn substantial commissions, all for completing our Commercial Loan Info Sheet. We look forward to sharing our services with even more NAMB members and their clients in 2018!”

Ellie Mae Named to Deloitte’s 2017 Technology Fast 500 List

Ellie Mae has been named to Deloitte’s Technology Fast 500, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America. Ellie Mae’s operating revenue increased 180 percent from 2013 to 2016. Ellie Mae’s President and

Chief Executive Officer Jonathan Corr credits the company’s impressive momentum with increased adoption of its services and enhancements to the Encompass all-in-one mortgage management solution. “We’re committed to continuing to drive innovation to meet the needs of our customers and provide complete end-to-end automation for a fully digital mortgage experience,” said Corr. “Since our launch of the Encompass Lending Platform, more lenders have begun to use continued on page 45

USA Business Lending Renews as a NAMB+ Endorsed Provider

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n National Mortgage Professional Magazine n DECEMBER 2017

NAMB+ Inc., the for-profit marketing and communications subsidiary of NAMB, has announced that Indianapolisbased USA Business Lending Inc. has renewed as a NAMB+ Endorsed Provider. For 30-plus years, USA Business Lending has been offering a variety of commercial loan services to financial institutions and individual clients nationwide. USA Business Lending has also developed its “Commercial Loans Made Easy” program to help financial institutions offer business loans to their members with minimal time and effort. “NAMB+ is pleased to welcome USA Business Lending back as an Endorsed Provider,” said Mike DeSantis, NAMB+ President. “Our NAMB+ members will truly benefit from the wealth of knowledge that USA Business Lending can provide in the commercial arena.” NAMB+ connects NAMB members with an array of Endorsed Providers aimed at helping mortgage professionals gain a competitive advantage in today’s marketplace with discounts and special programs only available to NAMB members. NAMB+ brings everything from compliance, digital mortgage platforms, lead generation, phone services, social media, custom canvas prints and much more to NAMB members as part of the NAMB+ program.

It’s the Time to here was a time that I did what you do, whether as a Mortgage Loan Officer or Real Estate Salesperson. I’ve also had my own real estate company and mortgage business, managing up to 22 people. It is a perspective that is a bit rare in the industry that my father encouraged me to be a part of after I convinced him that and further schooling was out of the question. In both disciplines, if I learned anything that I enjoy passing on to my readers, it’s that serious success is garnered by doing what most others do not do. Before starting a real estate office with a cousin in Camden, N.J., it was a Loan Officer’s life for me. I would not have left the mortgage industry that I loved so much if had I not been tempted by the belief that owning my own business was the only way to go. What I’m directing your attention to today is this idea of counter-intuitive thinking, followed by counter-intuitive action. Work when others don’t. Do what others won’t. Don’t ever follow the mob when it comes to business. The rewards are incredibly enormous. Not being able to recall exactly when, approximate dates are “good enough.” So in about 1975, I was working as a Loan Officer for one of the geniuses in the mortgage industry. His ability to think, remember, figure out, assume, believe and act is legendary. He was about 5’7”, weighed about 220 of very round pounds, but he could run a 40yard dash faster than anyone you’ve ever seen who is not a professional athlete. He challenged people constantly to footraces … never lost. Bill Schor was a genius in so many ways. His management skills were ham-handed, but incredibly effective. The mantra was: Get up, get dressed, get in the car and go see people. Wow, how complicated is that? I did it, overtly and overtly, besides over and over. It was September, and I was calling on (visiting) Pritchett Real Estate in Cherry Hill, N.J. The manager of the office was the son of the owner of a five-branch, miniconglomerate. He hated the job. His avocation was to be a

DECEMBER 2017 n National Mortgage Professional Magazine n

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The

Mortgage

Godfather

he Holidays, to Get to Work

attention to them. D. If you are working with buyers during the holidays, it gets you a jump-start on the first quarter of the New Year, as you have customers you are already working with. E. Sellers tend to be more motivated to sell during the holiday season, because they don’t want to have to hold on to the property until the spring market starts. From the loan officer side, the standard thought pervades the entire industry. It’s the holidays, nobody’s working. So why bother?

We have holiday parties to organize. We need to lobby our partners, like title companies, appraisers, contractors to be sure we get an invite to their party and we invite them to our party. In either case, this is stinkin’ thinkin’. Thinkin’ is in your control, and then your actions need to follow your thinkin’. Have a wonderful holiday season … one filled with joy, love, health for you and your family. Now get to work. This article was suggested by Paul Saathoff, Vice President of Lincoln Savings Bank, Omaha Neb.

Ralph LoVuolo Sr. has nearly 60 years history in the mortgage business. He was a Co-Founder/President of the NYAMB and a long-term member of the Board of Directors of NAMB. Presently, Ralph is Director of Sales Coaching for Lenders Compliance Group. He may be reached by phone at (917) 576-1230 or e-mail RLoVuolo@gmail.com. 43

n National Mortgage Professional Magazine n DECEMBER 2017

Now let’s mention the Loan Officer side. Not being able to take “no” for an answer, and establishing my connection with the manager was going to pay off, no matter what. I visited that office maybe two or three times a week. What do you think my competitors were doing? Of course, you already know. They stayed away like the office was infested with the plague. January came before I knew it, and one day, I was summoned to the son’s office. “Can you do a VA deal in two weeks? Our regular company said they can’t do it” they asked. I called my mentor, right from the real estate office. Of course, Bill said it would not be a problem. At the time, VA deals all went through the VA office in Newark, N.J. for underwriting. The buyers had lousy credit. There was no downpayment. So, to save time, back and forth, etc., etc., I decided, probably with a very forceful push from Bill, to drive the applicants to Newark to try to circumvent the system. Once more, it worked. We closed the loan in 11 days, from start to finish. I was a genius to the Real Estate Agent and all his salespeople. I started to get more business from them all because I went after what I preach about: I went to the office that did business and put all other reasoning aside. I formed relationships and established trust. So let us review … From the real estate side, do you accept the standard thought process of your peers? Do you start to take your foot of the pedal starting in late October? Here is why it’s a terrible idea: A. There is less competition because other agents traditionally take the holidays off. B. Individuals looking for a house during the holidays are normally serious buyers and are not just “tire kickers.” C. Some individuals need to purchase a home during the holidays, corporate transfers, individuals who have sold houses and need to buy a new home are “out there” waiting for someone to pay

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photographer. I went to their office for months before September. The first idea was to do what others who did what I did for a living would not do. Here’s why. Papa Pritchett had declared that all mortgage clients would be referred to one company, and every Loan Officer from any of the other companies in the area who dared to cross the threshold of any of the branch offices were told not to bother coming back … mortgage referrals went to only one company, my competitor. But I was/am stubborn. Additionally, I really liked the manager, son of the owner. He and I had similar backgrounds, having “father” experiences that we could share— overbearing, dictatorial, just “do it my way” edicts. Christmas was coming. Holidays were a big deal in Southern New Jersey back then, but Mr. Pritchett Sr. had a plan. He would run a contest for October, November and December. Whoever won the contest, a mix of listing and sales points, would get a free vacation at the time of their choice to a Caribbean Island. Now remember, there were multiple offices with many salespeople spread over a wide area of the county. Additionally, most of the salesforce had been there for more than five years. But the office in Cherry Hill, N.J., the one office I would visit, had a “greenie” who just didn’t know what the hell he was doing. So what did he do, he worked, spent more time calling FSBOs, expires, private listings, etc. He took more people to more houses than his co-workers, and refused to accept the norm that everyone else told him. This is the Christmas season. Everyone waits until January to buy. Nobody buys during the holiday season. This contest is a joke. We’ve seen it before, but the heavy hitters always win just because they have the best customers who are loyal, even during the holiday season. The “greenie” paid no attention. He just kept a positive attitude, followed by hard-directed action. He did the basics that everyone around him told him was a waste of time. Of course he won, but you knew that. So that’s the real estate side.

BY RALPH LOVUOLO SR.

Drilling Down on Negative Equity Issues

A New Name ... BY PAM MARRON

DECEMBER 2017 n National Mortgage Professional Magazine n

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ince January 2013, “The Long & Short of Short Sales” has been written to bring attention to the problem of foreclosure code applied to the mortgage credit of more than three million past short sellers, or those who sold homes for less than the balance of the mortgage. A factor that is present in nearly every case of when the foreclosure code will be experienced is when mortgage delinquency was more than 120 days late. Many who still have negative equity are saddled with portfolio conventional mortgages and interest-only home equity lines of credit (HELOC) where no refinance exists, and a modification is their only option. Current loss mitigation practices require mortgage delinquency and proof of hardship first for a modification, increasing the foreclosure code threat to the mortgage credit of more than four million homeowners if they need to modify … and for five million-plus homeowners who have already had a modification. The foreclosure code results in a seven-year wait to get a new conventional Fannie Mae or Freddie Mac mortgage, rather than the four-year wait required after a short sale or deed-in-lieu, and the one-year wait required after a modification. Because the foreclosure code issue now involves mortgage

credit of consumers trying to stay put but who have had a modification as well as those coming back into the mortgage market with a short sale in their past, “The Long and Short of Short Sales” column is changing its name to “Drilling Down on Negative Equity Issues.” The Freddie Mac YX Code “Foreclosure” is not stated on the credit report for mortgage credit of a short sale, modification, deeds-in-lieu and for excessive mortgage lates. But the word “foreclosure” can be found on Fannie Mae and Freddie Mac automated findings. Because many lenders don’t pull the Fannie Mae or Freddie Mac automated findings upfront, buyers who have met minimum wait timeframes and are eligible for a new conventional Fannie Mae or Freddie Mac mortgage are caught off guard when told midcontract that a foreclosure code shows up on their past mortgage credit. Fannie Mae has a workaround. Freddie Mac does not, and with the growing need for Freddie Mac’s exception for one year of tax returns for selfemployed borrowers, the desire for a workaround in Freddie Mac is very strong. A distinction in Freddie Mac’s automated Loan Product Advisor (LPA) system appears to separate credit specifically for a short sale and deed-in-lieu as

an “YX” code that appears in Feedback Messages, and is different from the “YW” and “13” codes that state “foreclosure.” These four codes are found under “Credit Risk Comments/Credit and Liabilities,” but can also show up under “Assets and Reserves” in the Freddie Mac LPA system. Below are the four credit codes that designate a foreclosure, short sale or deed in lieu, and mortgage delinquency under Feedback Messages: 1. 13: Recent foreclosure/signif derog appears on credit report. 2. 64: Credit report w/recent mtg delinq or review mtg credit history. 3. YW: the borrower has had a foreclosure within the last seven years. The mortgage file must also contain evidence of the completion of the foreclosure. 4. YX: the borrower has had a short sale/deed-in-lieu of foreclosure within the last seven years. The mortgage file must also contain evidence of the completion of the short sale/deed in lieu of foreclosure.

It is not uncommon to see the 13 and YW foreclosure code with the YX short sale code. Additionally, there are two different ways to pull a credit report that is attached to Freddie Mac’s LPA findings. One way is to attach the trimerged credit report that lenders can retrieve for automated submissions. The second method is to order a “Credit Infile” within the Freddie Mac Loan LPA system. In reviewing 12 cases run through Freddie Mac’s LPA system using both a tri-merged credit and a Credit Infile, seven short sales were analyzed, and four of them had the YX short sale code. Foreclosure codes 13 and YW showed up for the two modifications and two cases where late payments more than 120 days delinquent only existed. Differences between what showed up for the tri-merged credit run and the Credit In File run were also present. Drilling down … to enable consumers to utilize the best conventional financing of Fannie Mae and Freddie Mac.

Pam Marron (NMLS#: 246438) is Senior Loan Originator with Innovative Mortgage Services Inc. (NMLS#: 250769) in Tampa Bay, Fla. She may be reached by phone at (727) 375-8986, e-mail PMarron@InnovativeMortgage.onmicrosoft.com or visit HousingCrisisStories.com, CloseWithPam.com or 8Problems.com.

heard on the street

our solutions to close more loans, lower costs and reduce time to close loans. This has helped to accelerate innovation, providing users with the technology they need to ensure compliance, efficiency and quality throughout the entire mortgage process.” Overall, 2017 Technology Fast 500 companies achieved revenue growth ranging from 135 percent to 59,093 percent from 2013 to 2016, with median growth of 380 percent. “The Deloitte 2017 North America Technology Fast 500 winners underscore the impact of technological innovation and world class customer service in driving growth, in a fiercely competitive environment,” said Sandra Shirai, Vice Chairman, Deloitte Consulting LLP and U.S. Technology, Media and Telecommunications Leader. “These companies are on the cutting edge and are transforming the way we do business. We extend our sincere congratulations to all the winners for achieving remarkable growth while delivering new services and experiences for their customers.”

continued from page 41

Berkshire Hathaway HomeServices Names Web.com as a Preferred Supplier Web.com Group Inc. has announced its selection by Berkshire Hathaway HomeServices as a preferred supplier of marketing and advertising services for its network of nearly 44,000 agents. Web.com’s TORCHx marketing platform is designed specifically to help real estate professionals generate new business online. TORCHx generates high quality real estate buyer leads for brokers and agents to increase traffic to showings and boost their online reputation. “It’s clear that online search plays a key role in the real estate industry and Web.com recognizes the importance of delivering both leads and results,” said Gino Blefari, President and Chief Executive Officer of Berkshire Hathaway HomeServices. “We are pleased to make available the TORCHx

platform to our network of real estate professionals.” Jesse Friedman, Head of Business Development at Web.com and TORCHx CoFounder, said, “With more than 20 years of industry experience, we know how to connect home buyers with real estate professionals best suited for their needs. We’re excited to work with Berkshire Hathaway HomeServices to help its brokers and agents grow their businesses.” Guild Mortgage Opens First Branches in North Dakota Guild Mortgage has expanded in the Midwest with the opening of three branches in North Dakota: Bismarck, Dickinson and Minot, N.D. A fourth branch in Hazen, N.D. will be opening soon. Loan Officer Tracy Roberts, who has more than 12 years of experience in finance and lending, and more than 20 years in management and business ownership, will oversee all of Guild’s offices in North Dakota from the Bismarck location. She will be joined by Loan Officer

Brian Hanson in Bismarck, and Sales Managers Susan Lemon in Dickinson and Amanda Mathews in Minot. Loan Officer Christine Berger has joined Guild and will operate from the office in Hazen. “Helping members of the community achieve their dream of owning their own home is a responsibility that I take very seriously,” Roberts said. “I chose to join Guild Mortgage because being a good neighbor, helping others and caring for those we serve is part of who we are in North Dakota. Guild honors those long-standing beliefs and has a culture of community service, so this partnership was a natural fit. bemortgage Launches Out of Windy City

bemortgage has announced its launch, headquartered out of Chicago. The company is a division of Bridgeview Bank Group, founded by industry veterans with more than 100 years of combined mortgage experience. bemortgage was the continued on page 81

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n National Mortgage Professional Magazine n DECEMBER 2017

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The missing pieece in your product mix

DECEMBER 2017 n National Mortgage Professional Magazine n

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CampusT The Missing Ingredients in Business ecember is the time of year that the majority of the Loan Officers, Managers and Mortgage Company Owners decide to take pen to paper and map out their goals and plans for the next year. Traveling the country, conducting live seminars, as well as small intimate training programs, I find that the majority of mortgage professionals have never properly learned how to effectively set goals and create a business plan for the coming year. In my career, I have attended no less than a dozen goal-setting and business-planning programs or workshops. To this day, it still amazes me how many of them lack core principles and strategies that are critical in creating a plan

that works. Many of the programs tend to gloss over some of the most critical aspects of the process. This leads attendees to not pay attention to these details when working on their goals and plans, and alternately sets the plan and Loan Officer up for failure. Goal-setting and businessplanning is a lot more than just putting thoughts, dreams or wishes down on a piece of paper and expecting it all to come true. Of course, it is important to write down what you want to accomplish in your business. However, one of the areas that is often missed, and is critical to success, is addressing your own mindset. It is important for you to understand that the same level of thinking and action that have gotten you to where you are, will not take you to where you want to

go. So many times, I see and hear mortgage originators focusing on the numbers and the actions that need to be taken to achieve their goals. That is what they are putting into their plan. As much as this is a great start, as I just said, the mindset about taking the actions has to be different than it previously was. If there is no change in the way you think about your business, then you most likely will not achieve goals that are not in alignment with the way you have been thinking. There are seven essential steps to creating your business plan and goals: 1. 2. 3. 4. 5.

Clarity on your income goal Clarity on your “why” Know your numbers Strategy for growth Defined tactics of execution

6. Skills necessary for plan execution 7. Scheduling and time alignment The majority of business plans do not contain all seven of these items. However, even less contain the proper number and purpose which are required in Steps One and Two. Without the first two steps properly defined and clarified, which is what this article is all about, the remaining five steps cannot and will not work. We have all heard the expression, “Work smarter, not harder.” These words are said so often, that we have become numb to them. It’s really nothing more than an expression of common sense. Very few people take these words to heart and actually implement the changes necessary

By Ron Vaimberg

ss Plans and Goals? inspiring. Let’s face it, working just to pay bills is not what life should be about, especially when you are in an industry that you get to choose how much you can earn. Step one, regarding your income goal, will not work for you in your plan unless you can answer the question posed in Step Two which is “Why is that your income goal?” You must be able to answer very clearly in your mind “why” this is your income goal. As human beings, we are driven by emotion. The desire to earn more money is based upon a feeling, experience or state of mind that you are looking to have in your life. If your income goal does not light a fire under you because it is not really connected to an emotional feeling, then your number is nothing more than a number. It will not inspire you or

Ron Vaimberg is President and Head Coach for nmpU, a division of National Mortgage Professional Magazine. Ron is a leading Trainer and Coach to wholesale and retail mortgage professionals and the Creator of ForAEsOnly.com. Ron can be reached by phone at (888) 979-6678 (nmpu), ext. 801 or by e-mail at RonV@NMPMediaCorp.com.

n National Mortgage Professional Magazine n DECEMBER 2017

to accomplish working smarter and more effectively. In Step One, “Clarity on your income goal, this means how much money you are “committed to earning?” It does not mean how much money you would like to earn. Hopefully, you noticed that I used the word “committed” when talking about your income goal. Many originators write down as their income goal as a dream number or a survival number. If the number that is written down is a dream number, without any real commitment, then it will remain nothing more than a dream. If your income goal is a survival number, like the amount you need to pay your bills, then there is a slim chance you will reach your goal. The reason is not because your goal is not real, it is simply because your goal is not very

life, more toys, or even more money in the bank, is rarely enough to spark the emotional fire that is needed for you to elevate your game. Remember, the same level of thinking that has gotten you to where you are will not take you to where you want to go. It is easy for you to stay right where you are, because it requires no change in thinking or behavior. The real challenge to extraordinary business growth is the change in your passion to achieve your growth. A number on a piece of paper is not enough. You must be connected to your goal emotionally. To take your business to that next level and beyond, requires not only strategies and tactics, but passion. Your “why” is your passion and emotional reason for your goal. It takes you way beyond the number, it takes you into the life you are committed to living.

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sTalk

motivate you. In fact, what usually happens is that within 30 days of you starting to work out your plan, you will likely abandon your goal and fall back into your old performance habits. I can tell you from training and coaching thousands of Loan Officers in my career, whether it’s at a seminar, a one-on-one coaching session, I see time and time again MLOs struggle to gain clarity on why their income goal, is in fact their income goal. When I dig deeper into my clients’ mindset, what I usually find is that their goal is a number that they have had in their head for a long time, but never really tried to determine what it would mean to them, and how it would really truly feel to achieve the goal. They never envisioned their life and how it would be, and how it would feel to live at that income level. Simply wanting to have a better

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Managing Consum Applying the Lessons of the CFPB’s Complaint Portal By Jonathan Foxx, Ph.D., MBA

here are two ways to deal with consumer complaints: Confront them or ignore them. If you confront them, you usually will overcome them; if you ignore them they usually will overcome you. Ignoring consumer complaints hits almost all the checkboxes for risk failures: reputational, strategic, financial, regulatory, legal, sales, compliance, and even access to credit, to name the more salient risks. Essentially, you can push to resolve complaints or be dragged along by them toward an open abyss of insufferable business challenges. The Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010 directed the Consumer Financial Protection Bureau (CFPB or Bureau) to find ways and means to mitigate and reduce the risks posed by consumer complaints. The goal was to implement the coordinated collection, monitoring, and response requirements to consumer complaints involving financial products and services. Over time, the plan was to

develop methodologies to ensure that consumers’ financial interests were protected while also providing a way for financial institutions to redress their grievances. Supervised entities affected were those involved in credit cards, mortgages, private student loans, consumer loans, credit reporting, money transfers, debt collection, payday loans, prepaid cards, credit repair, debt settlement, pawn and title loans, Federal student loan servicing, marketplace lending, and even virtual currency. In due course, it became clear that many of the Bureau’s supervised institutions simply had not developed adequate means to resolve consumer complaints. The results of field examinations showed the range of failures running from not even having consumer complaint policies and procedures to resolution methodologies that posed significant legal and regulatory risks to the entities themselves. The vastness of the scope and size of complaints was monumental. Prior to the CFPB, certain types of complaints were usually left to state banking departments and

other state governing agencies to investigate. Also, Attorneys General were swamped regularly with complaints. To some extent, the consumer still reaches out to these state government resources. But such state-based agencies, many considered to be consumer advocacy agencies, did not and do not have the human and financial resources to be immediately responsive to consumer complaints. The CFPB’s plan was to establish the Office of Consumer Response (Consumer Response),1 whose purpose would be to answer consumers’ questions and send consumers’ complaints directly to financial companies. The goal was to get the consumer a response, generally within 15 days. For the most part, this goal was achieved, with response time these days usually in the range of 15 days from receipt of the complaint. The result of the Consumer Response initiative has led to a learning curve that benefits both the consumers and the financial institutions. That learning curve continues to unfold. The development of the complaint

resolution process has not been without challenges and controversy. I have written extensively about these controversies, such as the controversy involving the public facing Consumer Complaint Database.2 At this point, however, the Bureau’s response mechanisms have improved the intake process, enhanced communication with supervised entities, and helped to create a level field on which consumers and companies can resolve their differences. In this article, we will take a close look at the CFPB’s Company Portal (Portal), the Bureau’s primary tool for handling Consumer Response. Importantly, I will provide an outline of the actions that a financial institution can implement to ensure an appropriate and timely response to consumer complaints. Portal The Portal is the primary, electronic interface between Consumer Response and companies. Its purpose is meant to facilitate a coordinated response to consumer

mer Complaints

complaints. Consumer Response routes complaints to companies through the Portal. By using the Portal, supervised entities are able to read and respond to complaints. Response time and process flow are critical aspects of the compliance requirements vis-àvis consumer complaints. The process is supposed to work in such a way as to get the consumer a response, generally within 15 days. The CFPB considers responses to be past due for complaints that have exceeded the 15-day limit by which a company must provide an “in progress” status or, on the absolute outside, the 60-day time limit by which a company must provide a final response to a consumer complaint. The Consumer Response process requires the following nine steps: 1. Consumer submits a complaint about a consumer financial product or service by Web, telephone, mail, fax, email or another agency refers the complaint to the CFPB. Consumers who submit complaints directly to the

CFPB’s Web site can opt to have their complaint narrative published in the Consumer Complaint Database. Consumer Response screens the complaint for completeness and sends it to the company identified by the consumer via the secure portal for a response or refers it to the appropriate regulator. Company reviews the complaint, communicates with the consumer as appropriate, and determines what action to take in response. Company responds to the consumer and the CFPB via the portal. Company selects from a structured list of public company response categories (this is an option). CFPB invites the consumer to review the company’s response by logging into the secure Consumer Portal or calling the CFPB’s toll-free number. Consumers are given the opportunity to provide feedback to the CFPB about the complaint process. Complaints are published in the Consumer Complaint

Database when the company responds to the complaint confirming a commercial relationship with the consumer, or after the company has had the complaint for 15 days, whichever comes first. With consumers’ consent, scrubbed complaint narratives will be published when the company selects an optional public response or after the company has had the complaint for 60 calendar days, whichever comes first. Complaints can be removed if they do not meet all of the publication criteria. 9. Complaint data and information is shared with other offices within the CFPB, including, but not limited to, Enforcement and Supervision, as necessary.3 The Portal maintains digital security by requiring two-step verification, with a numeric code sent via email for the initial login. Re-verification is required every 90 days thereafter or when a new IP address is used to access the portal. It should be noted that the

Portal contains consumers’ personally identifiable information (PII), which must be safeguarded by all of the parties with whom the CFPB shares such information and any other sensitive information. Therefore, in addition to a consumer complaint policy, a company should undertake an information security, cybersecurity, and disaster recovery risk assessments, in order to ensure the highest level of confidentiality, protection and respect for all of the information involving the complaint. The financial institution should ratify a policy and procedure for information security and disaster recovery as part of its overall contact with the use of the Portal. Specifically, the following guidelines ought to be a part of any procedures involving the Portal: l Do not access, discuss, or otherwise disclose PII for any purpose not related to official duties; l Secure all physical copies of PII in a locked drawer, continued on page 55

Tony’s Corner

A Message From NAMMBA Founder & CEO J. Tony Thompson III, CMB

NAMMBA: Building Bridges, Connecting Women and Minorities in the Mortgage Space

Three Ways Fintech Can Help Minority Buyers; Three Ways It Can Hurt Them here’s no denying it: Financial technology, or fintech, is the future of mortgage lending. Companies are automating their processes to make applying for a mortgage easier. Innovators are developing digital solutions to make home buying a mobile experience. And traditional lenders are embracing the fintech revolution to remain relevant as their tech-savvy competitors gobble up market share. But like with any major change, the shockwaves can be good and bad. For minorities, fintech can be the pathway to accessing better lending options. But if lenders aren’t diligent in offering loan products that match their customers’ needs, fintech can become yet another mechanism that blocks underrepresented communities from enjoying the same homebuying privileges as their White counterparts. These are topics NAMMBA will cover during our annual Connect conference in Atlanta this April. Some of the best and brightest innovators in lending will be on hand to share tips and resources on how appeal to minority borrowers, navigate the latest industry happenings and policies and develop a diverse talent pool. One of our keynote speakers is Nima Ghamsari, Chief Executive Officer of Blend, which partners with lenders to develop digital mortgage solutions.

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For minorities, fintech can be the pathway to accessing better lending options. But if lenders aren’t diligent in offering loan products that match their customers’ needs, fintech can become yet another mechanism that blocks underrepresented communities from enjoying the same homebuying privileges as their White counterparts.

Most will agree that fintech is a boon for borrowers. But it behooves us to take a look at the pros and cons of this rapid shift in the mortgage space and how it affects our customers. Here are three ways fintech can help prospective minority homeowners, and three ways it could hurt them. Pros l Empowers their choices: Homeownership rates among minority buyers historically lag behind White Americans. While financial wherewithal has played a part in the disparity, we cannot discount the impact of race and ethnicity. A 2016 study from the National Bureau of Economic Research shows that African-American borrowers are 105 percent more likely to receive highcost mortgages, while Hispanics are 78 percent more likely to get the same.

”

Lenders aiming to dispel even a hint of prejudice in their operations should consider adopting tech that will empower minority consumers to make sound financial choices when choosing a mortgage. Fintech can help consumers better understand the costs of their mortgage, enabling them to find products that will be more blessing than burden. That’s a win for both borrower and lender.

l Simplifies homebuying: We all know it’s true … applying for a mortgage is difficult and stressful. Everyone wants the home, but no one wants the dread of the paperwork, the document scanning, the income verification and all the other rigors that come with getting a home loan. This process can be especially painful for minorities since their approval hinges on financial

condition of the borrower (a 2016 Pew Research study shows that White men earn more than all other races, except Asians, and all groups of women). A digital mortgage application process can expedite some of the more time-consuming aspects of getting a loan. If borrowers can submit documents online and use e-signatures to sign paperwork, it makes for a quicker, hassle-free experience. l Creates greater transparency: As the nation’s big banks move away from mortgage lending, borrowers are turning to non-bank lenders that feel more personable and trustworthy to guide them through the mortgage process. Lenders should invest in tech that gives consumers insight into what’s happening with their mortgage application. It’s an asset. It creates confidence for the consumer. It builds trust. And while we are several decades away from the era when redlining was prevalent, the remnants of unfair lending customs still ripple through some communities. Trust and transparency are everything. Cons l Cuts them out: Lenders who serve borrowers with undocumented income or challenging credit histories typically rely on manual

underwriting to help them render a loan decision. But if companies adopt an automation-only business model, compensating for more uncommon scenarios might be trickier, if not impossible. That, in turn, could alienate consumers considered at-risk. l Fails to reach everyone: It may be hard to believe but, even in a developed country like the United States, not everyone is tethered to a smartphone. Americans living in low-income households and with less educational attainment have lower rates of Internet adoption, although the gaps are narrowing. In 2015, 78 percent of Blacks and 81 percent of Hispanics were using the Internet, compared to 85 percent of Whites and 97 percent of English-speaking Asian Americans, according to Pew Research. While those numbers are significantly higher than they were even a decade ago, it still proves that there is a hefty segment of the population that’s not wired. If more lenders become digitalonly, it’s possible those would-be consumers might be left out in the cold.

Keep the customer in mind … always Don’t be mistaken … I’m not opposed to fintech. Quite the opposite, but I do realize that as our business continues to shift and lenders adopt technology to avoid obscurity, some borrowers may get lost in the shuffle. That shouldn’t happen.

There’s no doubt that the tidal wave of fintech crashing into the industry will be impossible to resist. It’s best that companies to jump aboard, learn all they can and figure out how fintech works best for their business. But we

must also keep in mind how the change could affect customers. For lenders committed to expanding service to minority communities, devising ways to leverage fintech to serve these borrowers is paramount.

J. Tony Thompson III, CMB is the Founder and Chief Executive Officer of the National Association of Minority Mortgage Bankers of America (NAMMBA), an organization dedicated to increasing the engagement of women and minorities with the Mortgage Bankers Association at the local, state and national level. As the Founder/CEO of NAMMBA, Tony’s vision is to create a platform where women and minorities can connect, grow and become leaders in the mortgage industry while providing a platform to recruit and train the next generation of mortgage professionals. He may be reached by e-mail at Tony.Thompson@NAMMBA.org.

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l It’s not flexible enough: Automation may be the wave of the future, but there are certain benefits to doing business with another human being. Fintech, with all its intuitive design and adaptability, might not be flexible enough to respond to beliefs or restrictions observed by members of certain cultural or religious groups. Case in point … the Quran and Sharia law forbid Muslims from charging interest on loans. A credit union in New Jersey found a way to serve its growing Muslim population by forging partnerships with Shariacompliant companies and rolling out a suite of Islamic banking products, according to National Mortgage News. Another credit union, in Houston, Texas, found a way to offer loans with no interest so it could serve consumers who ascribed Islam’s Jafari school of thought. Achieving these outcomes might not be so simple in a fintech-only lending

environment. Companies will have to be flexible, forwardthinking and willing to create products that appeal to borrowers who may not fit into the milieu of mainstream culture.

By Jonathan Foxx, Ph.D., MBA

Adverse Action Obligations Question We were cited for not fulfilling the requirements for adverse action. This came as a real shock to us because we relied on our LOS for the information from the credit bureau and our own compliance attorney to provide the procedures. This is really unusual for us, as we are a bank and have never previously been cited for this infraction. We conferenced about it and decided to ask for your guidance. We want to know what are our obligations in adverse action circumstances? Answer When a creditor takes any adverse action with respect to a consumer in connection with a credit transaction that is based, in whole or in part, on any information contained in a consumer report from a consumer reporting agency, it is incumbent on the creditor to implement certain procedures. Below, I set forth the three primary obligations. 1. Provide the consumer oral,

written or electronic notice of the adverse action; 2. Provide the consumer, orally, in writing or electronically, with: a. The name, address, and telephone number of the consumer reporting agency that furnished the report. If the agency compiles and maintains files on consumers on a nationwide basis, a tollfree number established by the agency must be provided and b. A statement that the consumer reporting agency did not make the decision to take the adverse action and is unable to comment on the specific reasons why the creditor took the adverse action; and 3. Provide the consumer, orally, in writing or electronically, with a notice of the consumerâ&#x20AC;&#x2122;s right to: a. Obtain a free copy of his or her consumer report from the consumer reporting agency that furnished the report, and

the notice must indicate the sixty-day period under the Fair Credit Reporting Act (FCRA) within which the consumer may obtain the free consumer report as a result of the adverse action; and b. Dispute with the consumer reporting agency the accuracy or completeness of any information in a consumer report furnished by the agency [15 USC Â§ 1681m(a)]. Please note that the disclosure requirement addressed in the response to

this question applies to an adverse action taken, in whole or in part, based on consumer report information obtained from a consumer reporting agency. But there are many variations, such as where there is a denial or increase in the cost of credit that is not based on a consumer reporting agency, or where the adverse action is based on an affiliated party that is not a consumer reporting agency. Procedures for properly implementing adverse action should take into consideration the full range of possibilities and variations.

Jonathan Foxx, Ph.D., MBA, is the Managing Director of Lenders Compliance Group, the first and only full-service, mortgage risk management firm in the United States, specializing exclusively in outsourced mortgage compliance and offering a suite of services in residential mortgage banking for banks and non-banks. Information contained in this article is not intended to be and is not a source of legal advice. If you would like to contribute a question, please submit it to Compliance@LendersComplianceGroup.com.

managing consumer complaints continued from page 51

cabinet, cupboard, safe or other secure container when not in use; l Never leave PII unattended. PII should be properly protected by establishing access restrictions, logging out of systems, or locking computers when not in use; l Confirm the need to create duplicate copies of PII to perform a particular task with the supervisor and properly dispose of the duplicates when they are no longer needed; and l Shred or use another secure method to dispose of PII instead of recycling. The flip side of handling such data is to make sure that company procedures report any suspicion of lost or compromised information to the CFPB via its email at CFPB_StakeholderSupport@CFP B.gov. Also, I suggest White Listing these two other Consumer Response e-mails: CFPB_ConsumerResponse@CFP B.gov and NoReply-

Notice@CFPB.gov. The Bureau places the responsibility on the supervised institution to deactivate users or notify Consumer Response when an authorized user, designated as the Point of Contact, no longer requires access to the portal. It also expects the institution to report the receipt of a complaint not related to the company immediately upon discovery and safeguarding all the complaint data to prevent misuse or re-disclosure. The Portal is accessed through the most common browsers, such as Internet Explorer, Microsoft Edge, Mozilla Firefox, Google Chrome, and Apple Safari. However, the Portal is not mobile-enabled. Dashboard The central focus of the Portal is the Dashboard. Like Cloud-based and SaaS platforms, a Dashboard becomes the means by which the user navigates the entirety of the system solution. In the case of the Portal, the Dashboard displays â&#x20AC;&#x153;tiles,â&#x20AC;? small

framed boxes, with important information linked thereto. There are tiles for: l Active Complaints: Complaints that are open and require action; l Past Due Complaints: Complaints that have exceeded the 15-day limit by which a company must provide an in progress or the 60-day time limit by which a company must provide a final response to a consumer complaint; l Due Soon: Complaints that are due for company response within two days; l Unread Complaints: Complaints that have not been viewed; l Need More Info: Complaints that need more information and the additional information is due within 10 days; and l In Progress Complaints: Complaints where the response has been initiated but not completed, and where the complaint is due within 60 days of when the company received the complaint. Our clients have not expressed much difficulty in navigating the Portal. The Webpage functions

themselves are relatively easy to utilize. In addition to the Dashboard, for instance, there is a â&#x20AC;&#x153;Complaintsâ&#x20AC;? page, which contains a list of active and archived complaints in a sortable and searchable format. There is an â&#x20AC;&#x153;Exportâ&#x20AC;? page, which contains an export tool and a list of historical exports. There is a â&#x20AC;&#x153;Supportâ&#x20AC;? page, which contains a link to the company portal manual, the support ticket feature, and a list of current and historical support tickets that a company can access by selecting an individual ticket ID hyperlink. Finally, there is a â&#x20AC;&#x153;Newsâ&#x20AC;? page, containing news articles related to Consumer Response or the Portal. Most of the foregoing tools are searchable. Complaint Status In my view, the complaint status at the company level should emulate the complaint status specified by the Bureau in the Portal. In other words, the company should have a process status for each complaint that is similar to the process status given in the Portal, irrespective of whether the consumer continued on page 83

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year after year after year after year

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growth strat

Responsible Leadership is Critical to Success fter four years of steady, moderate growth, non-QM mortgages are poised to become more widely accepted in the years to come. However, the marketplaceâ&#x20AC;&#x2122;s responsible leaders will face crucial challenges if non-QM marketers choose to push for rapid growth rather than building greater credibility and acceptance of tried-and-true products. In 2018 and beyond, non-QM lenders must continue to

carefully develop new products and build positive reputations for our companies among originators, real estate professionals and other influencers. At the same time, we will grow stronger by promoting correspondent channels and attracting investors for secondary mortgage market products. To remain successful and grow, we can never lose sight of how we were born in the aftermath of the sub-prime mortgage collapse 10 years ago. From day one, our greatest

challenge has been countering confusion and suspicion that connects non-QM lenders with the sub-prime loans that contributed to the financial collapse. In fact, non-QM loans are solid, manually underwritten products that comply with ability-to-repay (ATR) rules, offer fair terms, and have proven to offer minimal risk to investors. Yet, because of our classification as alternate lenders and the fact that few major banks offer them, widespread understanding and acceptance has come slowly. Because non-QM lending has

grown from nothing to a $5 billion marketplace since 2014, it is tempting to aggressively push for faster growth. We believe that $100 billion in non-QM loans can potentially be written annually. Yet, the market is still in its infancy and pursuit of unfettered growth can threaten the hardwon, still emerging credibility that non-QM lenders are beginning to enjoy. Our primary growth engines have been and will continue to be expansion of our wholesale marketing capabilities and creation of well-researched,

ategies for 2018

ss of Non-QM Marketplace stable new products that meet the needs of deserving, creditworthy borrowers. At the same time, our budding reputations and positive performance results have triggered demand for investment vehicles and correspondent relationships. Building on our success in each of these areas requires diligent, conscientious approaches. To expand our wholesale channel, we continue building teams and investing in technology. At the end of our first year of operation, my

company, Angel Oak, had 15 account executives serving originators and real estate professionals. In 2017, we added account executives in Seattle, Portland, Philadelphia, Minneapolis, Columbus, Birmingham, Houston and New Jersey. We are now licensed in 38 states. By the end of 2018, we will have more than 100 account executives nationwide. Our technology investments will enable each office and account executive to facilitate more production. Most importantly, technology tools,

By Tom Hutchens

such as our Quick Quote, will enable originators to align each potential borrower with the nonQM loan product most appropriate to their method of qualification. Relationships will remain at the center of our wholesale channel. We believe working with loan originators to broaden consumer awareness and demand is the best way to sustain our growth trajectory. As these loans are tailored for people unable to qualify for agency loans, we believe mortgage industry and real

estate professionals can best identify and help deserving consumers. Although millions of potential borrowers are unaware that they can qualify for credible home loans, mass market branding tactics are likely to augment confusion and distrust rather than create clarity. We believe that deploying national advertising to create unrestrained demand among consumers would prove to be counterproductive. Our plan calls for doubling the number of noncontinued on page 58

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responsible leadership

QM experts we hire and train to work with mortgage originators and their real estate agent allies. As a wholesale lender whose priority is sustainable growth, respect and credibility, we are delivering tools and support to originators, who will in turn assure production of high-quality loans. Manageable growth of the marketplace will surely follow, unimpeded by the potential threat of failed loans. Our investments in field personnel, seminars, Web-based tools and training are certain to result in safe long-term growth. Driving millions of new consumers to request non-QM loans would risk our strategic path toward delivering benefits to consumers, industry partners and investors. The quest for short-term profits would most certainly increase defaults which would be followed by cries of “I told you so” by regulators, mainstream institutions and other critics.

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New product development is also crucial, but less-thanprudent non-QM lenders may threaten everyone’s long-term growth by pushing the envelope in this area. Since our inception, Angel Oak has gradually grown our product portfolio, which now features eight distinct loan programs. Each product was introduced after careful analysis of customer and loan performance data. We have been scrupulous in assuring that each new loan program abides by ATR (ability-to-repay) standards. As new products proliferate, competitors may be tempted toward increased flexibility in qualifying criteria. Because of the unique history of non-QM loans, we should be concerned that failure of any one product line can release a flood of doubt and distrust that can harm every player in our space. We will be cautious and deliberate in introducing new products and

encourage our competitors to understand the dangers that come with too rapid product development. The rise of non-QM correspondent lending will contribute to overall growth of our marketplace. Angel Oak will continue to support mortgage companies entering that space. An increasing number of correspondents have been encouraged to enter this field after senior tranches of non-QM securitizations recently received AAA ratings. However, becoming a correspondent in the non-QM marketplace is different than packaging agency loans. To successfully manage risk, lenders need to utilize best practices, systems and processes that have been perfected by leading non-QM organizations. During the last two years, we have become a savvy, trustworthy correspondent affiliate. We will increasingly advise mortgage lenders on building strong, sustainable and diverse non-QM lines of business. As non-QM loans volume grows and high-performance continues, more investors will be attracted to the marketplace. Angel Oak has successfully progressed from being a pioneering portfolio lender to the leader in bringing non-QM loans to the secondary market. In this area too, long-term growth and performance require careful, responsible management. Investor interest and participation is indeed on the rise. However, these early-stage

investors are still testing the waters. We cannot take investor enthusiasm for granted, therefore our focus must remain on responsibly building the strength of our business development channels, loan performance and reputation in the finance industry. By doing that, more investors will surely come on board. As in other aspects of the non-QM marketplace, success is not guaranteed. Any failure of loan performance or news of questionable practices would cause much more damage across our young marketplace than a similar stain in a more mature arena. To succeed over time, nonQM lenders must share a purpose beyond simply providing loans to worthy borrowers. We must erase the question marks attached to our products and customers. We know that agency lending rules–properly intended to protect the financial industry from risky borrowers–were modeled for a “typical working family.” Yet, those rules exclude millions of successful Americans. Enabling these fellow citizens to obtain home loans is our mission and a worthy one. We are delighted that it offers opportunities for many competitors to succeed. But, everyone in the non-QM arena shares a burden of history. Steady, responsible growth in loan production and product development is critical if we are to evolve into a mature marketplace that can be a positive force in the U.S. economy.

Tom Hutchens is Senior Vice President of Sales and Marketing at Angel Oak Mortgage Solutions, an Atlantabased wholesale and correspondent lender leading the non-QM space for four years and licensed in more than 35 states. Tom has been in the real estate lending business for nearly 20 years. He may be reached by phone at (855) 539-4910 or e-mail Info@AngelOakMS.com.

ATEGIES FOR 2018 a special focus on GROWTH STRATEGIES FOR 2018 a special focus on

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a special focus on GROWTH STRATEGIES FOR 2018 a special focus on GROWTH STRATEG

Let It Grow: Insight Into Creating, Managing and Fostering Growth in 2018 efore we look ahead at 2018, it is interesting to look back at specific trends and products that succeeded or failed in 2017, and how they might fare in the year ahead. To truly be successful in our business, we need to learn from the recent past, and then try to predict how that will play out in the future.

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Tech crunch The year 2017 was a big one in terms of technology advances in the mortgage industry, and many invested heavily in that trend. But, mortgage professionals were surprised at the consumer’s lack of adoption of technology in real estate and real estate financing. Much of the investment was in front-end automation of the verifications needed. The problem was that it was already a pretty efficient process for those that are tech savvy. The reality is, how much time does it really save by having someone drop in a PDF versus a user having to type in their passwords and other information. Maybe a couple of minutes. Let alone the fact that a significant percentage of borrowers would still need to provide some documents anyway. In the end, investor restrictions and lesser options for best execution made most companies cautious in full adoption. As Executive Vice President of a tech-focused consumer division, my thinking is always, “How do we revolutionize the consumer experience?” But, the truth is mortgage companies don’t need to go all out and spend the money on that front-end experience because there are and will be so many economically priced solutions that exist to provide this service. Going forward, I think the focus is going to move from the front-end user experience to be heavily focused on efficiencies and operations and all the things that go along with

the loan manufacturing process. That’s what the mortgage industry needs right now because of the soaring costs to get a loan done. Just look at the Q3 data from the Mortgage Bankers Association (MBA). The highest ever recorded cost to complete a loan. Regulations have bogged down the process.

By Rob Pieklo

shipping and e-mail clearing. Weeks will turn into hours, if not minutes. Push the pause button on political pressure Tech also had a tremendous impact in another very surprising way. I don’t think we’ve ever

“To truly be successful in our business, we need to learn from the recent past, and then try to predict how that will play out in the future.” Now that the mortgage tech sector is no longer talking about TRID and LE font size, we can focus on AI and robotic software to help get loans through the process in just days. I also expect to see huge strides in how these loans are going to be closed and sold. Adoption of digital closings will accelerate as more and more investors accept the technology. Fewer errors and omissions will cause loans to be sold in a very seamless manner. Data to data. No more printing, scanning,

experienced a time in which our country was so reactively politicized. I often say we are just a tweet away from another refi boom. Whether it is North Korea, or the healthcare bill or the new tax plan, a tweet can cause somebody to not want to vote for something, it can be scary. That’s the world we live in. I don’t think we’ve ever had to pay attention, as much as we do now, in terms of the changes that are happening in the government. We saw

industry wide process and program shifts, post-crisis, in terms of regulation in the mortgage industry. Now, there are opportunities for deregulation with a changing of the guard at the Consumer Financial Protection Bureau (CFPB), and a pro-growth initiative tax plan. These are things that the mortgage professional must get versed in to be able to gain an edge on their competition. Big Brother banking On the mortgage banking side, it is surprising to watch how much power the big banks have garnered in terms of purchasing power of loans. We’re going to see that in 2018, with some of the big banks looking to grow their portfolio of loans, and watching that play out in pricing for the mortgage professionals and the borrowers, the pressure on big banks to fill their portfolios goals, which they laid out in their quarterly earnings. It will be interesting watching it play out with the GSEs (Freddie Mac and Fannie Mae) and the Big Banks fighting over the top tier loans that are available in 2018. The GFEs will be under pressure. The mid-tier mortgage companies are going to have create opportunities to sell to one of those big banks or utilize them via a conduit. Some should look to find a small regional bank that will be just as competitive to catch loans in their footprint. To be successful, mortgage companies are going to need to have a variety of investors on board to ensure no loans are left behind. The power still resides in the big banks. They will be able to price companies out of the market and that includes Fannie Mae and Freddie Mac. Lien in close In 2018, I truly believe there is a big opportunity with second mortgages, especially with the rates where they still are. But how those loans are

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Moving away from mediocrity Finally, I would strongly advise companies from doing what I call, “Chasing of mediocrity.” You started to see that here at the end of 2017, mortgage companies looking to bring new branches into their team, chasing these branches and overpaying for mediocrity. That is something that companies should be looking out for in 2018, because it’s

going to be a year of efficiency, not gluttony. The road ahead If you are wearing the right lenses, 2017 provided a strong

roadmap for success in the coming year. You just need to correctly read that map, follow sensible directions and watch out for any roadblocks that might take you down the wrong path.

Rob Pieklo is a Partner at American Financial Resources (AFR), and the Chief Strategy Officer/Executive Vice President of the eLEND division of American Financial Resources Inc. Rob is responsible for creating and implementing strategic growth initiatives for the retail, consumer direct platform eLEND.com.

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constructed might be different. We’ve been lucky to see rates stay so low for quite some time, but I expect to see a more specific second-lien product begin to take shape, one geared toward what people are looking to accomplish. This is a specific product based on need, with renovation being a strong example. Renovation loans were a surprise growth area in 2017, and I don’t see that changing in the year to come. As for the cookie-cutter loans, I think we all see it won’t be pretty in terms of high-end in 2018, especially with refis coming down 60 percent or so. There will be a need for more creativity, especially when it comes to the refi mortgage market. You might be inclined to think it will be tough to convince somebody to do another mortgage when their current first lien is at 3.5 percent and rates are now at 4.5 percent. But a quick look at the numbers will tell you that it might not be as tough a sell as you think. According to the Zillow Housing Market Overview, the number of U.S. homes for sale is down nearly 45 percent from its peak in 2011, and Metrostudy’s national “Activity Index,” shows home remodeling hit an all-time high in the first quarter of 2017. Every time you see this happen in the market, where interest rates start moving and volume is sliding a little bit, you start to see creativity in firstlien products, and creativity in terms of what they offer. You can take solace in the fact that today’s homeowner truly cares about their property, and you don’t have to price it the same as if somebody were taking that money and using it for a different purpose. Because they are reinvesting in their home. Each company needs to make their own discretionary decisions on what kind of loans are they going to be writing in the shortterm vs. the long-term, and what is the risk-reward in terms of those loans. I see a lot of companies offering a lot of products, and loan originators are very excited that they are offering those types of products, but you must be careful of the types of loans you are doing and make sure that you don’t run into any issues, like we’ve had in the past.

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2018: A Race to the Bottom An interview with Bill Cosgrove, CEO of Union Home Mortgage By Alice Alvey, CMB here’s little disagreement among the mortgage focused economist that 2018 will probably see rates go up and definitely see refinance volume go down. However, there is a dramatic difference in how mortgage CEOs visualize the road through that uncertain weather forecast. Mortgage leaders are leveraging experience, philosophies and resources to set their 2018 navigation strategy in motion. Bill Cosgrove, CEO of Union Home Mortgage and 2015 Chairman of the Mortgage Bankers Association (MBA), took some time to share his insights into the year ahead. Bill Cosgrove’s mortgage banking career began in 1986 as a Residential Loan Officer. In 1994, he joined Union Home Mortgage Corporation, and in 1998, was named company President. Cosgrove purchased and became 100 percent stockholder of the company in 1999. The company has grown from $58 million to $1 billionplus in loan production during Bill’s leadership of the company. Union Home has built from its roots in Cleveland to a nationally recognized growth company. In 2007-2008, Cosgrove was President of the Ohio Mortgage Bankers Association. From 20082010, Bill was the National Chairman for MBA’s MORPAC Committee. This appointment consists of leading the fund raising efforts for MORPAC throughout the country. MORPAC raised $1.1 million for industry activism during Bill’s Chairmanship of MORPAC. In 2000 at the age of 38, he was named in Crain’s Cleveland Business “40 under 40” honored as one of the top 40 young executives in Northeast Ohio. In 2011, he was awarded the National Mortgage Bankers Associations Burton C. Wood National Legislative Service Award for his superior legislative efforts representing the mortgage banking industry. Bill has served the National Mortgage Bankers Association on RESBOG, and Board of Directors. In 2015, Bill served as MBA Chairman. He has testified on behalf of the industry in Washington, D.C. before the House Financial Services Sub Committee and Senate Banking

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Committee. He has been interviewed by The Wall Street Journal, USA Today, New York Times, numerous trade publications, and local and national news networks. What gets you fired up when thinking ahead to 2018? Bill Cosgrove: What gets me fired

Is this risk lenders are choosing to take or is it based on the AUS decisions you see today? Bill Cosgrove: It’s both. It’s a race to the bottom. The credit score and ratio combination getting approvals in AUS today wouldn’t have been approved just a few years ago. This, combined with the refi business drop, and we see competitors doing stupid stuff to stay alive. It puts quality lenders, with a long-term vision, in a tough situation.

“Training young people to love this business and helping them see the career opportunities in mortgage banking is working for us.” —Bill Cosgrove, Chief Executive Officer of Union Home Mortgage

up is the additional loan level risk we see companies taking in the combination form of lower credit scores and higher qualifying income to debt ratios. I don’t think anyone would argue that the loans we do today would not have been approved five years ago and starting to look more like to credit risk that got us into the mess in the first place. There is also anecdotal evidence of the AUS becoming more liberal and this doesn’t get publically announced.

What are your predictions for 2018 in terms of volume and rates? Bill Cosgrove: The year 2018 will most likely be just like this year. If refis are down another 15 percent and purchases are up 15 percent, then we will have a repeat of 2017. The trouble will continue for those who cannot get that purchase business. The year 2018 will be close to a carbon copy. Rates are not going up all that much. That being said, at the time we are

talking, Congress is reviewing tax reform legislation. The Mortgage Bankers Association (MBA) worked long hours behind the scenes to get language modified that would have been a huge hit to how mortgage servicing rights (MSR) revenue is accounted for. We won this battle, but still need to watch this through to the end. You’re talking about the provision that would have required lenders to pay tax on the mortgage servicing right at the time it is created, versus today when the tax is paid when cash is received? Bill Cosgrove: Yes, if this language had been included in the final law, the increased costs would have been passed on to consumers and reduce their access to credit. Higher costs mean higher rates, fewer servicers and fewer options for consumers. I’m not exaggerating when I say people were on the phone at midnight before the final vote to get this modified. It just goes to show that anything can happen in this business to alter the course and you have to be ready. This is where a trade association like MBA really shines light on the possible ramifications of unintended consequences of misguided policy. Speaking of unpredictable factors, we have a new Interim Head of the Consumer Financial Protection Bureau (CFPB), although even that isn’t completed resolved at the time we are talking. How are you planning for the 2018 regulatory environment? Bill Cosgrove: The CFPB has not been visible in providing affirmative guidance on key topics like loan officer compensation and marketing agreements. They have been governing by enforcement actions. It only points to what’s wrong under a wide range of circumstances. So that leaves the door cracked for companies who are willing to take the risks and again, race to the bottom to stay alive. They use marketing tactics and LO compensation plans that in many legal opinions violate the law. We’ll watch for the appointment of the new Director and continue to pressure to get clarity. The year 2018 is also a year where we aren’t faced with a significant regulatory change. We are 100 percent ready for the new HMDA changes and have been shifting to development of several

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innovation strategies. However, I’m not sure the new HMDA changes stand up with a new Director of the CFPB. If you could have a one-onone meeting in 2018 with any regulator, who would it be and what would you tell him/her is the top priority? Bill Cosgrove: I’d want time with the Conference of State Banking Supervisors (CSBS) board. There is so much dysfunction in state audits. As a national independent mortgage banker, we are subject to more than 40 audits annually, and that number is growing. Bankers feel the same revolving door of auditors. The areas auditors spend time on are oftentimes inconsequential to the consumer. More importantly there must be more standardization and reciprocity of audit results. The cost of the redundancy is significant. The individual states’ lack of collaboration, experience and consistency is impacting our costs and therefore the costs to consumers. It’s also a privacy risk. The more agencies you have requesting information the more consumer data is being transmitted

and resting in multiple places for hackers. Let’s shift gears to the exciting improvements ahead for mortgage lenders. What are the innovation strategies you feel are necessary for 2018? Bill Cosgrove: The exciting part is the new technology providers, with no prior experience with the mortgage industry, are finding unique applications for mortgage lead generation, customer management and retention, and adding efficiency to the process. These companies see the opportunity and are bringing new ideas. There are so many technology solutions and consideration that we have created a dedicated innovation team. They have strong backgrounds and will coordinate the business needs with the solutions. We are looking at everything including OCR and ratification intelligence as way to handle our growth without just adding staff. Traditionally, our managers would have had to try to stay on top of the latest technology and weave this into the other two or three jobs they often carry. We’ve learned that, as

we grow, if someone has two or three other jobs in the company, it’s difficult to be fully committed to innovation and change. It’s critical to growth that someone is focused on this to improve capacity. It sounds like the innovation team is a strategic investment in managing growth through technology. What other growth strategies are in play? Bill Cosgrove: Growing our partners is another top priority. Our sales team has developed a “Partners Coaching Partner” program focused on paying it forward. This has been invaluable in our ability to attract new talent and build sales. Training young people to love this business and helping them see the career opportunities in mortgage banking is working for us. Combine this with our vision of world-class training and we think we are positioned perfectly.

How do you keep all these prioritized and moving forward? Bill Cosgrove: For more than 15 years, our management team has attended a bi-annual retreat, identified our rocks and executed on every one of the plans. We set corporate and departmental goals that keep everyone focused for the quarter and the year. Read the book Scaling Up and you’ll get an idea of how we do it. Conclusion When I met with Bill Cosgrove the first time in spring of 2017, I was so impressed with how genuine he was, and his passion for the mortgage business. He bleeds mortgage banking. A colleague once asked him if he had plans to take a European vacation after his tenure as Chairman of the Mortgage Bankers Association, and he responded ,“Do they have mortgages there?”

Alice Alvey, CMB is Vice President of Education and Training for Strongsville, Ohio-based Union Home Mortgage. She may be reached by phone at (440) 4204294 or e-mail AAlvey@UnionHomeMortgage.com. 63

Account Executive Louisiana, Missouri, New Jersey, Ohio and Wisconsin

• Plan, develop, and execute sales strategy to meet established goals in assigned territory • Secure new and maintain current relationships with originators, through both a wholesale and correspondent channel • Market Angel Oak products and programs to the mortgage and real estate community • Serve as liaison between brokers and operations team With an industry leading reputation for delivering an extraordinary mortgage experience, we are also looking for underwriters and other operations positions to support this growth in our Atlanta headquarters. Regardless of where you are located, if you are interested in joining this fast-growing company in the new, dynamic Non-QM space, please contact John Wise at john.wise@angeloakms.com or 818-391-4131.

www.angeloakms.com

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We’re looking to more than double our sales force this year to take advantage of the fastest growing segment of the mortgage industry. If you’re an experienced Wholesale Account Executive or have ever considered becoming one, come talk to us today.

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Two Surefire Ways Not to Lose the Digital Mortgage Game in 2018 By Mark Madsen

recently had the privilege of joining more than 1,000 techsavvy mortgage lenders, innovators and vendors in San Francisco for Digital Mortgage 2017, SourceMedia’s Second Annual Digital Mortgage Conference. This was an amazing event with an intense level of energy and purpose among the attendees. Maybe a bit intimidating, even for an old Web marketer like me who has been generating mortgage and real estate business online since 2002. Product demos were wellprepared and executed by the top presenters at each tech company. True expert panels of industry leaders shared great insight and perspective on the digital mortgage trends that are shaping our home finance process. It was standing room only, through the last presentations of the event, along with a packed exhibit hall that reflected just how serious the mortgage industry is about revamping old systems and technology. As I walked through the crowds of tech firms, investors and mortgage company executives brainstorming together on ways to digitally streamline the home financing process, I kept wondering how long the originators who focused more on relationships versus technology would survive.

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Digital mortgage goals While attendees had different definitions for the term digital mortgage, the most accepted vision is to create a better experience for the borrower by: l Empowering the borrower by allowing them to digitally participate in the application, approval and underwriting process. l Speed the process from application through funding and beyond by replacing human error with computer accountability. l Reduce risk, improve standards in compliance and capture more data. Digital mortgage opportunities for relationship focused originators According to the recent J.D. Power

2017 U.S. Primary Mortgage Origination Satisfaction Study, “Forty-three percent of mortgage customers applied for a home loan digitally in 2017, up from just 28 percent in 2016. This jump in online loan applications was met with a decline in consumer satisfaction with mortgage originators due in part to a

Digital mortgage win number one Run towards that human connection while the mortgage industry invests in ways to digitize it. Borrowers want to participate in the mortgage process by having open lines of communication and continuity with their trusted mortgage team.

“Borrowers want to participate in the mortgage process by having open lines of communication and continuity with their trusted mortgage team.” perception of a slower process.” I believe this data highlights a major gap between consumer expectations for better communication and the industry’s rush to remove the human element of a mortgage professional before there is a frictionless digital mortgage experience throughout the entire process in place. In other words, while borrowers appear to have a desire to be empowered through technology as reflected by the spike in online applications, they are not excited about being abandoned in the process.

Leverage technology that your mortgage company may have already approved and integrated to help you better communicate with your borrowers and real estate agents. Build an educational Web site that is mobile-friendly and can serve as a central hub for checklists, FAQ videos, chat boxes and access to your team.

Digital mortgage win number two The most notable presentation at Digital Mortgage 2017 was from Garth Graham, Managing Director of The STRATMOR Group, where he shared valuable statistics from a 2017 STRATMOR Insights Digital Mortgage Adoption Survey. According to Graham’s survey, less than 50 percent of lenders are currently working with a CRM or lead management system. Additionally, less than 40 percent of lenders are providing status updates automatically via text, email or mobile. The top perceived barriers to digital mortgage adoption listed by the STRATMOR Survey include cost, loan originator change, system and vendor integration requirements, and internal IT capabilities. You do not need to wait on a digital mortgage revolution to correct human error with computer accountability. Simply implement an automated update strategy through an API connection between your LOS and CRM that will e-mail and text borrowers, as well as all other transaction agents about key milestones for current in-process loans. You may even consider taking it a step further and sending each unique group of recipients to a special landing page on your Web site that explains what that milestone means to them. Remember the human element by adding your branded downloadable FAQ checklist and a personal video explanation. Digital mortgages in 2018 I do believe that current technology has improved the digital mortgage process for both borrowers and loan originators over the past 15 years. Loan originators can win in 2018 by focusing on their personal brand and connection to borrowers and agents while the mortgage tech industry spends the next 12 to 24 months finding a balance between streamlined data and personal relationships.

Mark Madsen is Vice President of Special Projects and Digital Marketing at LeaderOne Financial Corporation. He may be reached by e-mail at Mark@MarkMadsen.me.

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â&#x20AC;&#x2122;Tis the Season for Refis Cash-out refinances may be the answer for late-year origination blues he end of the year and the beginning of the next have historically been slow months for the real estate industry, and many mortgage originators will see a significant slowdown if theyâ&#x20AC;&#x2122;re focused only on purchase business. As the close of the year approaches, originators should explore strategies that keep their business moving forward. One area that may be overlooked and not fully explored is cash-out refinances. With home prices appreciating steadily, many borrowers are building equity in their homes and may be unaware of thisâ&#x20AC;&#x201D;or of programs available to them to convert that equity into cash they can use for a variety of needs. In particular, borrowers with more challenging credit may be an untapped market for originators building their refinance and cash-out refinance business. Although some may be wary of cash-out refinances because of reckless lending during the run-up to the

financial crisis, these loans have changed, and when done responsibly, they can be quite beneficial to borrowers. The right time The winter months in many areas of the country bring cold temperatures and cold real estate markets. In 2016, purchase origination business dropped from a summer high of 65 percent of all originations to just 53 percent in November, according to data from Ellie Mae.1 And those numbers are typical of a trend that happens every year: Homebuyers seem to hibernate for the winter, leaving mortgage originators to scramble for business. However, current homeowners, particularly those with lower credit scores, have been overlooked in the market. These borrowers often have a greater need to have cash on hand, but may be unaware of their eligibility to tap into their available home equity with a cash-out refinance. Many homeowners have been

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building strong equity in their homes as home values have increased steadily. According to the National Association of Realtors (NAR), the national median existing-home price was $245,100 in September 2017, an increase of 4.2 percent from September 2016.2 That increase marked 67 consecutive months of year-over-year gains in median existing-home prices. And while some markets are improving more slowly than others, 92 percent of NARâ&#x20AC;&#x2122;s measured markets experienced single-family home price growth this past third quarter.3 This means more and more homeowners are realizing significant equity gains as home values continue to appreciate, and they continue to pay into their current mortgage. Mortgage originators who want to expand their business should be ready to help these homeowners take advantage of the opportunities now available to them. The right market Borrowers with more challenging credit have long been overlooked in the mortgage industry. From purchase loans to refinances and every type of loan in between, borrowers with lower credit scores are currently making up only a tiny fraction of mortgage originations, despite their eligibility for a variety of loan programs. According to Ellie Mae, borrowers with FICO scores of less than 600 made up only 0.54 percent of all closed purchase loans this past September.4 That same bracket fared slightly better with refinance loans and made up 4.28 percent of closed refis in that time frame. Even with Federal Housing Administration (FHA) loansâ&#x20AC;&#x201D;which many consider the primary option for borrowers with challenging creditâ&#x20AC;&#x201D; borrowers with FICO scores of less than 600 only made up 5.85 percent all of all closed FHA loans. In fact, the average FICO score for an FHA refinance loan was 649, but that number jumped up to 682 for FHA purchase loans. Itâ&#x20AC;&#x2122;s clear these borrowers are being underserved, as many lenders wonâ&#x20AC;&#x2122;t work with credit scores below 600, despite the FHAâ&#x20AC;&#x2122;s eligibility requirement of just 500. But for the originators who see the great potential in this market, these borrowers represent a significant opportunity to build their business. Many of those with challenging credit are responsible

By Ray Brousseau

borrowers who are simply struggling to find an originator (and a lender) willing to take the time to work with them and their specific issues. Originators who want to grow their business with the opportunity these borrowers represent should seek lending partners that offer loan products for borrowers with lower credit scores and other credit issuesâ&#x20AC;&#x201D; some lenders are offering programs to borrowers with credit scores as low as 500. Cash-out basics For those originators who havenâ&#x20AC;&#x2122;t worked extensively with cash-out refinances before, itâ&#x20AC;&#x2122;s important to know they are very similar to a standard refinance, but with a few key differences. This financing vehicle pays off the current mortgage balance and replaces it with a larger mortgage at the homeâ&#x20AC;&#x2122;s current, higher appraised value, allowing the homeowner to realize the difference in cash. The money taken out can then be used to pay down other higherinterest debt, help pay college tuition, finance a remodel, or to meet any other personal needs the homeowner may have. The homeowner doesnâ&#x20AC;&#x2122;t have to take out the maximum allowed amount, however, and the size of the new mortgage should be weighed against the borrowerâ&#x20AC;&#x2122;s other financial responsibilities along with his or her cash needs. Originators should be sure that potential borrowers have thought through the cash-out option thoroughly and weighed the pros and cons of the new mortgage. Originators should tell their clients to consider: l How long they anticipate staying in their current home. l The amount of cash they need. l How the new monthly payment amount will fit into their overall finances. l The total cost of borrowing. A cash-out refinance can offer significant benefits to borrowers. They often provide more flexible terms, have fewer fees, and lower rates than home equity lines of credit (HELOCs). In addition to the benefits of extra cash on hand, the refinance portion itself can bring the same attractive terms for homeowners that a standard refinance does, including: Lowering interest rates and monthly payments, removing mortgage insurance (which can also decrease monthly payments), and moving to a more favorable loan in general because the borrowerâ&#x20AC;&#x2122;s

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refinances to their catalog, as well as underserved borrowers to their client list. With home prices continuing to appreciate, more and more homeowners are building significant equity in their homes, and they may not be aware of the programs available to them to pull equity out of their house. Cash-out refinances— and the variety of loan products that fall within this category—offer homeowners the flexibility they need to meet their current financial needs while staying fiscally responsible.

Footnotes 1—Static.EllieMae.com/PDF/Origination-Insight-Reports/Ellie_Mae_OIR_SEPTEMBER2017.PDF 2—NAR.Realtor/Newsroom/Existing-Home-Sales-Inch-07-Percent-Higher-in-September 3—NAR.Realtor/Newsroom/Metro-Home-Prices-Maintain-Fast-Growth-in-Third-Quarter-Rise53-Percent 4—Static.EllieMae.com/PDF/Origination-Insight-Reports/Ellie_Mae_OIR_SEPTEMBER2017.PDF 5—HUD.gov/Sites/Documents/40001HSGH.PDF (page 424) 6—Benefits.VA.gov/HOMELOANS/PurchaseCashout.asp

Ray Brousseau is President of Carrington Mortgage Services LLC, Mortgage Lending Division, responsible for all day-today operations and P&L management. Prior to joining Carrington in 2011, he spent 23 years leading various segments of Citi’s consumer finance business, CitiFinancial.

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loan-to-value ratio has decreased. If a cash-out refinance is the appropriate financing choice for the borrower, a variety of programs allow for a cash-out option. Originators should work closely with their borrowers and their lending partners to determine not only which programs they are eligible for, but also which will best suit the borrowers’ financial situations. In addition to conventional lending models, the FHA and U.S. Department of Veterans Affairs (VA) both offer cash-out refinance options—and each has a different set of guidelines. Conventional lenders often won’t want to finance more than 80 percent of the current value of the home, and a higher loan-to-value ratio may mean higher interest rates with this loan type. For FHA cash-out refinances, the maximum loan-to-value ratio is 85 percent of the adjusted value, and the property must be owner-occupied for the previous 12 months with 12 months of current mortgage payments.5 There is an exception for inheritance properties, and homes owned for less than one year can be eligible as long as six months of payments have been made, but typically it is more advantageous for a borrower to wait until at least 12 months have elapsed. The FHA cashout refinance can refinance any type of loan—it doesn’t have to be an existing FHA loan. The minimum credit score required for cash-out refinances is the same as other FHA loans: 500. In addition, the combined mortgage amount of the first mortgage and any subordinate liens cannot be greater than the FHA’s Nationwide Mortgage Limit, which is affected by the location of the property. VA loans are even more generous in their terms. A VA cash-out refinance can be used to finance a non-VA loan into a VA loan, and the VA allows for financing up to 100 percent of the property’s value.6 Of course, the eligibility pool for VA loans is limited to current service members, veterans and eligible surviving spouses. For borrowers seeking a cash-out refinance, the good news is that there are a wide range of loan products and programs available to them. Originators should carefully evaluate the options for their clients and work with lenders that offer products that meet the needs of their clientele— particularly for underserved borrowers with challenging credit. As mortgage originators try to not only keep up business during the slower winter months, but also to expand their reach into new markets, they should consider adding cash-out

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Doing Things Differently May Make All the Difference he analysts have spoken and the forecasts for national mortgage volume for 2018 have arrived. And while there are slight discrepancies depending upon the source, the general consensus holds that refinance volume will decrease by about 10 percent in 2018, while purchase volume will increase by about 10 percent, leading to an overall residential market that should be about the same size as 2017. Picture the 2018 mortgage market as one great big pie: A $2 trillion pie. The institutional banks are taking smaller pieces each year, leaving the rest of the pie to be divided up amongst all of the other players. The market is changing, and consumers are evolving. If you want your piece of the pie in 2018 to be as large as, or larger than your piece of the pie in 2017, you may need to conduct business differently. How are you planning to differentiate yourself or your company in 2018 to get your full piece of the pie? First, consider the consumer. PwC Inc., a nationwide consulting and research firm conducted a Consumer Lending Experience Radar Survey and discovered that a fast end-to-end process was the most important feature to a consumer—more important even than costs, the lender’s reputation or their positive reviews. Consumers want speed. This shouldn’t be a surprise to us. Buyers are often willing to pay a little more for a product to receive expedited shipping, or selecting a smaller, easier convenience store with no lines or waits. Lenders should recognize that different marketing programs appeal to different buyer segments. The Millennial campaign may not attract boomer buyers, but regardless of the generation, once they have chosen a lender and completed a loan application, they want speed. They want their loan to close quickly and with little hassle. Dan Hanson, Chief Retail Production Officer at Loan Depot, reports, “The mortgage industry in 2018 will be tested as the margins and declining government loan percentage will continue to tighten margins. Our overall strategy will be to use technology and process to improve productivity for both sales and operations. Those who cannot invest or execute in this area will be forced into cost reductions and compensation changes that will put them at a competitive disadvantage. The

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consumer is becoming much more comfortable using the current technology to search for homes and will begin to change the way real estate is purchased in the country. Keep your eye on the disruption in the consumer space, as technology usually follows to enable the customer to obtain products and services.” Fannie Mae recognizes the

Agent and Builder partners. Success in 2018 will depend upon capturing more purchase business, and we’re confident that our new Fast Forward loan process will help our Loan Officers boost their purchase production in each of their respective markets.” Another strategy for differentiation is through product or strategic

“If you want your piece of the pie in 2018 to be as large as, or larger than your piece of the pie in 2017, you may need to conduct business differently.” consumer’s “need for speed” and has been working on their Day One Certainty process with some lenders. John Cady, Executive Vice President of Production for Mountain West Financial, reveals that, “We have invested significant resources in 2017 to perfect our Day One Certainty process, which we have named Fast Forward. Customers expect our services as an industry delivered to them in hours and days, not weeks and months like before. We expect this process to be a big component of our production in 2018. Doing a great job for a buyer, delivering their loan quickly and exceeding their expectations leads to great reviews, more referrals and better relationships with our Real Estate

offerings to garner a larger piece of the pie–or in some cases making the pie a little bigger by offering loans to individuals who might not have qualified under recent guidelines. Examples include loans with lower credit score requirements, expansion of non-QM products, loans with lower downpayment, closing cost assistance, seconds, Jumbo enhancements and other unique company-specific loan products. In this regard, Dan Hanson of Loan

By James Butschek

Depot shares, “We will be continuing to bring new proprietary products to the market to provide consumers with more and better options for financing; i.e. Interest Only products and HELOCs. We are currently watching the banks retreat from retail and retrench into their natural footprint of customer retention. This will be a challenging year with a lot of movement and consolidation as companies look to scale and leverage capital.” Tonya Todd, SVP of Strategic Products at Mountain West Financial, has been working hard in 2017 to bring new products to market for her firm. “We’re very excited to launch our newest product for our production team called HomeSteady,” said Todd. “This is our branded name for a conventional 97 percent loan with no mortgage insurance. By reducing the upfront costs and the total monthly payment, we have a product that will help more families qualify to buy a home now. Our goal in 2018 is to equip our Loan Officers with a full suite of unique and aggressive products to help them capture more purchase business, and make a difference in their communities.” Offering something unique, and pairing it with smooth on time closings will help enhance your referral partners and within the community. Although more comfortable with the technological side of the process, your borrowers will still be looking to you for advice and guidance. Staying up to date on industry happenings and guidelines will become even more crucial as technology enhances the process. Continue to build your online presence and positive review, although it was fallen slightly in importance, reviews are a great way to enhance your reputation or possible sway a borrower who is teetering between you and your competition. While volume for 2018 isn’t expected to differ from 2017, it is certainly not a “same as the last year” environment. A stronger purchase market, a demanding consumer and tighter margins will lead to more competition for market share. Companies and individuals who have a plan to truly differentiate themselves and stand out in the field will have the best chance to assure that they get their piece of the pie.

James Butschek is a 30-year veteran in the mortgage business. He is a Regional Vice President of Production for Mountain West Financial. His first 10 years in the business were as a top originator, and he has since led highly successful sales and operations teams across multiple markets in the U.S.

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Increasing Market Share Through Machine Learning Platform, Hybrid Valuation Products and Expanded Presence in Servicing in 2018 n 2017, my company, Nationwide Appraisal Network (NAN), a womanowned appraisal management company (AMC) with a national presence, spent much of the year transforming their appraiser selection process through the use of a sophisticated machine learning platform which has helped to attract new clients in states in which they outperform their competitors. In 2018, our focus is to offer new products and expand our presence in mortgage servicing—initiatives designed to foster growth throughout the year. The decision to employ machine learning and big data transformed our business and approach to growing its market share. Since deploying the platform, we have been able to reduce turn times, improve accuracy, reduce underwriting conditions, decrease costs and improve overall performance across the board. The technology captures performance and quality data, generates a composite score for every appraiser. Lender clients have complete transparency into their appraiser’s (and that of the AMC) performance through an intuitive dashboard. More AMCs are starting to take advantage of this platform, and as that happens, lenders will soon be able to compare and select the best AMC for each assignment in any given market. Moreover, performance and quality data is captured, scored and available providing us with the capability to present a compelling, quantitative case to lenders for choosing us as one of the AMCs with which they work. And because as more data is collected, the more accurate machine learning becomes, these metrics will continue to improve throughout 2018 and beyond. That data will be used in 2018 to illustrate our performance and increase our market share in states where we outperform their competitors.

By Joni Pilgrim

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“Deploying machine learning led to a significant change in the way we did business, and meant training employees to base selection decisions on the appraiser’s performance and quality score, not on the basis of relationships or feelings about appraiser performance.”

Among the states with the most interest are Florida, California, Ohio, Maryland, Pennsylvania, New Jersey, New York and Georgia, among others. In early 2017, we tested and

implemented a machine learning platform that optimizes the selection of an appraiser for each assignment based on zip code, loan and property type. As a result, we were able to master

the appraisal selection process and improve performance on key performance indicators used to evaluate performance. Each appraiser earns a score based on the market, loan and property type, with the best performer selected for the assignment, and the result was that our performance increased. It has always been clear that the appraiser was the most important factor in the quality of an appraisal, but it was a challenge to determine who the best appraiser was for a file, because quality and performance data on appraisers and AMCs has not been captured in a way that we could use the data to make the best decision possible. The basis for appraiser selection before we deployed machine learning had been very different. Appraisers were chosen on the basis of geographic competency, active license and E&O insurance, eligibility for the assignment and ability to meet turn time expectations in the market for the assignment type. Complex or unique appraisals required additional vetting for experience and expertise, but it was on a one-off basis. There simply wasn’t any real accurate data readily available at our fingertips to rely on for decision-making. Machine learning technology has made collecting the data at several critical points in the appraisal process possible. Scoring the quality and performance of appraisers is a must in getting the right person on the job every time. Now, it’s possible for lenders to select the best performing AMC or appraiser in each market, based on loan and property types. In the absence of accurate and timely data, it was very difficult, if not impossible, to increase appraiser quality and performance. That’s because there was no way to capture and visualize the data, identify weaknesses, take steps to rectify them and improve overall performance. One of the more gratifying results due to the collection and

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valuations to clients. To attain those objectives, we plan to offer alternatives to traditional appraisals: l Hybrid Valuation Product: We plan to deliver a hybrid valuation product that can replace BPO’s, 2055’s and quite possibly 1004’s. l Servicing: We will expand our servicing and subservicing presence, offering advanced technology

and product offerings supported by an experienced, well-trained and dedicated team. In 2018, we anticipate that clients and business partners will continue to embrace

strategies that speed origination and servicing processes, trim overhead and create efficiency. That includes licensing new, advanced technology platforms, such as machine learning, or using appraisal products that are fast, accurate and cost-effective.

Joni Pilgrim is the Chief Business Development Officer at Nationwide Appraisal Network (NAN), an appraisal management company (AMC) she co-founded. For more information, e-mail JPilgrim@Nationwide-Appraisal.com.

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“Companies that don’t embrace diversity and inclusion are going to be left in the dust. It’s just that simple.”

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use of big data and analytics, our services became more reliable, consistent and competitive. There were strikingly fewer revision or calls from lenders with questions, and they noticed the improvements. That’s the reason in the second quarter of 2017, when overall origination volume was down sharply across the mortgage business, we experienced an increase in order volume. Also, NAN experienced improvements financially and operationally across the entire organization. The appraisal process is one of the top causes of delays, and unnecessary costs, during the origination process, which lenders and borrowers were forced to suffer through. AMCs had long claimed they offered better performance than competitors, but there was no way to quantify those differences. Lenders replaced AMCs based on anecdotal evidence, without the data and transparency needed to make these kinds of decisions. The high cost associated with engaging a third-party AMC and increased risk to the lender is why having data and analytics to make better decisions is apparent. Deploying machine learning led to a significant change in the way we did business, and meant training employees to base selection decisions on the appraiser’s performance and quality score, not on the basis of relationships or feelings about appraiser performance. Over time, they learned to trust the data, and saw firsthand the immediate, positive effect machine learning had. In addition, we plan to begin offering some new hybrid valuation products and expand our presence in mortgage servicing. Lenders have lived with turn times they consider too slow and appraisal fees they consider too high in states such as Colorado, Washington and Oregon, Rather, than continuing to grapple with these challenges, lenders want to replace traditional appraisals with alternatives that are accurate, fast, compliant and cost-effective. That means finding ways to eliminate bottlenecks, generate efficiency and reduce costs, while delivering accurate, high-quality

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Maturity

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By Eric Weinstein

sked if he would rather be young or elderly, Plato said, “Elderly.”

In our youth, we are dominated by our passions. It is only after our passions subside can we think clearly. I am 58-years-old … I get it now. No woman will probably ever see me naked again, so I can now concentrate on other things. In my younger days, I was passionately and exclusively a Mortgage Broker. I liked the choices I had of wholesalers and no one was going to tell me which lender to use for what deal. Shops that were lenders were somehow evil, since I could always beat the prices and program choices offered to their clients. They had only a few choices where to place their loan, I had 50. Borrowers should have more options. Anything less was immoral, in my opinion. Of course, there is nothing malevolent about being a lender, it is just a different business model. As a broker, it is easy to get set up with 50 different wholesalers and the myriad of loan programs, underwriting standards and pricing options they offer. But, being a lender is a whole different story. As a lender, the more conduits you use, the exponentially harder it gets to add more. Typical brokers acting as a lender cannot have more than two or three lenders before the staff’s collective heads explode in a bloody mess. “Clean up in aisle five!” Then, my company gave us the option of doing a loan as a broker or a lender. At first, I resisted like a school girl asked to be kissed by an ugly boy. “No, thank you,” I said. “I am fine just the way I am.” Then, I tried one. Just to test it out. The loan process went about the same, though I had to learn some new disclosure rules. I used a lender I would normally use in that loan scenario,

anyway. Pricing was about the same. There were no annoying and confusing disclosures about borrower-paid charges and lender credits. The borrower walked away happy. I got paid a week later than normal, but I can live with that. The truth is, it is great having 50 different wholesalers to

Who thought a guy like me would prefer monogamy? It’s as if George Clooney got married … oh, wait! Doing something over and over again doesn’t make you better at it, it just reinforces bad habits. I was stuck in the rut of my youthful passions, never giving “being a lender” a chance. Then again, maybe the whole system changed, and this is the natural evolution of the brokerage industry. Being a broker has

“…it is great having 50 different wholesalers to which to broker, but really, how many do you really use? If you are like me, you get used to the same four or five places, know their loan programs by heart …” which to broker, but really, how many do you really use? If you are like me, you get used to the same four or five places, know their loan programs by heart, absorb all of their underwriting quirks and overlays and recognize who does what good. It is just easier. It has now come to the point where I do the majority of my business with one lender and actually get irritated when I have to broker out the deal.

It used to be, you could take a loan application on a “float” basis and decide later which wholesaler to send it to based upon the pricing of the day. Not any longer. With most wholesalers doing the Loan Estimate after you input it into their Web site, you are pretty much stuck using that bank, at their pricing, no matter what. If you are going to be stuck with a particular bank, you might as well do it as a lender. I understand the average age of a Mortgage Broker is now 58-years-old, my age. So the majority of you Mortgage Brokers out there know what I am talking about. Most deals are cookie-cutters. They are simple, you have done them 100 times, and typically one bank is your best place for it. You get to know Account Reps, how far you can push underwriting and the process to a tee. At our age, we are looking for simplicity. We are not trying to re-invent the wheel or explore new continents. I just want to sit down, relax and rest my hurting feet. After four kids, an ex-wife and a demanding dog, my exuberant life force has been beaten out of me. Please, just let me take it easy for a while. I used to think being a Mortgage Broker was “freedom.” Now, as a minilender with FREEDOM, I can do what I really want … to be free to hit that same thing over and over again.

just gotten harder. The system, from a Loan Officer’s point of view, slowly leans now toward being a lender

Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. Eric is semi-retired, doing mortgages by referral only. He may be reached by phone at (703) 5058692 or e-mail EWeinstein4U@gmail.com.

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“Technolo e gy, integration and leadership.”

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t year rcent us year.” .

a special focus on GROWTH STRATEGIES FOR 2018 a special focus on GROWTH STRATEG

Real Estate Investment Trends You Need to Know Heading Into 2018 By Jackie Roberson

s 2017 draws to a close and mortgage professionals and investors alike start to think about goals for the coming year, it is important to be aware of some of the latest trends in the real estate market, so planning for the coming 12 months can be done more effectively. Read on for some key trends that are set to have an impact in 2018 and beyond.

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Top cities and regions poised for growth One of the big trends to know about in real estate is the continuing growth in cities. For example, in its 39th “Emerging Trends in Real Estate” report, which examines the outlook for 2018, research firm PwC has placed Seattle, Wash., as the top-ranked market for the coming year. While the city has been growing considerably over recent years because of the many tech giants which call it home, there are other factors driving its appeal as well. The city’s population growth is twice the national rate; it has a young, educated population (and therefore, young and educated workforce); many parks to use (93 percent of residents have access to green space within walking distance); is rated as a top five culinary market; and is a top destination for international visitors. In addition, Seattle has strong investor demand and an abundance of capital available for investment and development. Current trends also show a lot of growth in medium-sized cities across America. With top-tier economic cities such as New York, San Francisco and Seattle straining to keep up with demand right now (particularly where geographic or local government constraints are limiting new construction), more younger people are putting down roots in cities which may not have quite the same professional opportunities as the larger locations, but do boast better housing affordability, both in real estate sales and rentals. Markets which are adjacent to

primary spots like New York City or Washington, D.C., also have high appeal. One mid-sized spot said to be poised for top growth is Salt Lake City, Utah. The local economy is strong in SLC, plus plenty of real estate investor demand abounds, and a high percentage of the population is

include Austin, Texas; Fort Lauderdale, Fla.; San Jose, Calif.; Boston; Nashville; Dallas/Fort Worth, Texas; Raleigh/Durham, N.C.; and Los Angeles. Millennials hitting the market Another trend to be aware of as we enter 2018 is the growth in the

“Current trends also show a lot of growth in medium-sized cities across America. With top-tier economic cities such as New York, San Francisco and Seattle straining to keep up with demand right now …” aged between 15 and 34 years. In Salt Lake City, the five-year disposable income growth is 1.7 times the national average, while outdoor activities, culinary choices and cultural opportunities all rank highly too. The city also boasts good airport connectivity,, with a high level of international passenger volume. Some of the other cities predicted to keep on growing strongly in the coming year

number of Millennials buying their first home. Born roughly between the early 1980s and the late 1990s, Millennials are likely to be attracted to the market because real estate is doing well

at the moment and interest rates are relatively low. Currently one of the largest group of homebuyers in the U.S., Millennials have had, by now, a chance to pay down their student debt and save up some cash for a downpayment. A lot of this has to do with the fact that many of them have been living in their parents’ homes for a longer period of time. When it comes to buying property, Millennials are likely to see their homes as a reflection of themselves, more than as an investment, and as such they’re tending to jump straight over the traditional “starter home” property and into the higher end of the market (larger, more expensive homes) first up. Millennials are buying not just in urban neighborhoods, as you might expect, but also regularly in suburban communities. When choosing a property, they seem to be keen to find homes with shared amenities (such as those found in large condo complexes and newer neighborhoods), as well as locations which enable them to get involved in their local community. Senior housing set to boom Whether you’re looking to invest a large chunk of cash into a single property, or want to put some money into real estate investment trusts, you should also consider the growth in seniors housing happening right now. With the aging population, this market is set to boom big time. The present inventory across the country isn’t enough to meet the needs of this group (aged in their 60s, 70s, and 80s), as it is projected to grow by a whopping 25 million in just the next 15 years. This spectrum of seniors spans geography and, when it comes to real estate, covers a wide variety of housing types and many market niches with different levels of service.

Jackie Roberson is a Content Coordinator and Contributor with expertise in the areas of technology, home life, business, personal finance and education. She may be reached by phone at (702) 997-2700 or e-mail JackieR@SeekVisibility.com.

ATEGIES FOR 2018 a special focus on GROWTH STRATEGIES FOR 2018 a special focus on

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Financial Darkness

Get Amped About Your Business and Restore Your Client’s Power By Tracy Cavanaugh, CMP, CMPS

Act as their advisor If there was ever a time when our clients needed to hear from us, we’re looking at it. Gone are the blue skies and sunny days when just about anyone could have been there for them. Today’s inclement conditions make it grey, bumpy and unstable and this is when our clients really need us. Being there for our clients in good times and bad is the measure of a true advisor. They need our knowledge, services, products and advice. They need to know that we’ve assembled an arsenal of the right resources for them to access, be

it a CPA, Financial Planner, Attorney, Real Estate Professional or Insurance Agent. They need to know we have the answers to their questions … the ones they ask and, yes, the ones they are afraid to ask. Are there cash flow considerations? Perhaps there is an opportunity to refinance their commercial property now. It might be that their number one weakness could be bolstered by the services of a financial advisor that you can introduce them to. Do they need to have their insurance policies reviewed? What if a second opinion from the CPA means a tax savings strategy your client didn’t even know was available to them? By acting as their advisor, you are creating a stronger connection to them and to those to whom you refer them.

One good turn deserves another Taking on the responsibility of helping your clients navigate this economic cycle, will help to get them back into action with a positive forecast and outlook. Creating a stronger connection with them means referrals to your business—not only from your satisfied client in the form of other business owners they know, but also referrals from the lawyers, insurance and financial professionals you provide to your clients. Those professionals will return the favor of your referral with by sending their clients to you for mortgage advice. This action alone may not only be the defining reason your client’s business is still standing—you may also invigorate your own business and help you both weather the storm until the power is restored.

Tracy Cavanaugh, CMP, CMPS is President of The CS Advisory Group of AFFG. She is a Principal of America’s First Funding Group and is a member of the Certified Mortgage Planning Specialist (CMPS) Institute and the Beverly Hills Chamber of Commerce.

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Quell the fears: Theirs and yours Your commercial clients— irrespective of the specific industry—share the same general fear with regard to this economy. With the threat of higher inflation and people spending less, how am I going to make it through this turbulent time? You too, as a Commercial Mortgage Broker, may be asking yourself this very same question. Well, the good

news is, you don’t have to languish in fear. Believe it or not, this environment is offering us the opportunity to increase the number of referrals we receive by committing to our clients on an entirely different level. Reaching out to our existing clients and simply asking them how they are doing and what is going on in their business will give them much needed support in fearful times. It also provides us with the power to find out each of their individual concerns and the ability to convert their worry into a strong, clear sense of direction. This strategy will help you, too. The more you help your clients, the greater the number of referrals you will receive.

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arkening skies, heavy winds and blinding bolts of lightning followed by a loud hollow boom of thunder soon lead to violent downbursts of rain, and in the blink of an eye, you can lose your power and find yourself in a blackout. Everyone can relate to just how vulnerable it feels to be left completely in the dark; a victim of the elements. Much like the swift speed with which Mother Nature moves, so too can the economy. With oil, food, unemployment and foreclosures up and consumer confidence, housing and the value of the dollar down, it doesn’t take the skills of an economist to see that many of our existing commercial clients could very well be facing their own personal State of Emergency.

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Better Surround Sound Superior ways to get things done in your organization By Dr. Freddy Davis

personal human development. The struggles that people dealt with 10,000 years ago are the same ones we deal with today—a different context, maybe, but the same personal issues. The specific issues relate to how we deal with emotions, how we take care of our bodies, how we operate our minds and how we manage our spirit. These all deal with the human part of our being. While some may not think that these are not top priority issues for the workplace, the fact is, your organization can only operate efficiently to the degree that your people are masters of themselves. We have to make sure that we ourselves, and those who work for and with us, are developed to the highest level possible. Ultimately, it is our human ability to grow and adapt that makes the difference. In some ways, individuals should address these kinds of issues before hitting the workplace. An employer wants everything focused on the job. But it is not always that simple. It is often the pressure of the job itself that causes emotional stress, physical fatigue, a dull mind and strained relationships. That being the case, it is essential for every company to provide ways for their people to address these issues, even in the workplace. In fact, any organization that wants to be successful over the long term will deal aggressively with these matters. The nature of human systems So, just what are the things that have to be handled? They fit into four categories—the emotional, physical, mental and spiritual. These are the essential elements of our humanity. These are the things that make up who we are as human beings and that we can actually

manipulate in order to generate personal growth. They are also the things that, if we neglect, will cause our personal decline. Let’s look at each area individually to see what is involved. l Emotional elements: Emotions relate to how we feel. While most people don’t like to admit that their lives are controlled by emotions, the fact is, the large majority of people basically live their lives based on how they feel. It is mostly an “autopilot” response. We react more than act. This does not mean, though, that we are doomed to a reactive life. We have the capacity to override emotion. All it requires is deliberate intention. Doing this at one moment or for a short period of time is the common experience of most everyone. Long term emotional control, however, takes more effort. It is a set of skills that takes knowledge and practice. Anyone who wants to move powerfully forward in life must learn and practice these skills as part of a daily routine. l Physical elements: We exist in a physical environment and are hosted in a physical body. Our mind can operate in ways that allow us to transcend the body with our thoughts, and this mental ability is a wonderful thing. But there is no way to actually leave the body. While we cannot escape its limitations, we can expand them. The limitations we experience with the body relate to nutrition, rest and exercise. To the degree we work on these things we become more able to develop the stamina which allows us to continued on page 80

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How to evaluate your human systems As a business owner, I face situations every day that challenge me. Whether I am working on

marketing, PR, sales, product development or production, there is one challenge that is always the same, to run my business in a way that allows it to grow and thrive. As a result of training and experience, I have learned methods which help me to accomplish the things that I need to do. I have created systems to make the routine tasks of my business easier so that I can be more effective and profitable. When I get to the place where I am able to create a system for a particular task, it is because I have found a way of doing it that is effective for me. Once a system is created, it is easy to just sit back and let the systems run. But we have to be careful not to become complacent. Before you know it, a new technology will emerge or someone will develop a magnificent innovation that is better. Just like the surround sound. The old traditional way may work great, but the new technology will likely be cheaper and more effective. Without continual adaptation, we could soon be overrun. The speed with which the world is changing makes it imperative that we stay on the cutting edge. If we don’t, we will find ourselves invested in systems that cannot compete in the current marketplace. But how can we make sure that this doesn’t happen to us? It is certainly important to keep up with the latest technology and innovation. But there is an even more important area that needs to be taken care of. Oddly enough, this other area is not related to new technology or to innovation. In fact, it relates to something that mankind has struggled with since the beginning of time. No generation moves beyond it and everyone has to deal with it. It is the issue of

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irtually everyone who has ever been to the movies enjoys the experience of surround sound. To feel like you are actually in the middle of the what is going on in the movie is a powerful experience. The pulsing force of the sound itself pulls you into the action. Wouldn’t it be great to be able to have that experience at home, too? Actually we can, but it is usually quite a hassle and can be rather expensive, as well. The traditional way to create surround sound at home is to buy a nice stereo system with at least five or six speakers and place them in just the right places around the room. You have to be careful, though. Not only does each speaker have to be in the right place, the person listening also has to be seated correctly among the speakers. But when it is working right, even the most mundane show becomes a sound feast. But that is not the only way to get surround sound at home. Recently a technology has come out that provides surround sound using your regular stereo system with only two speakers—and they don’t even have to be great speakers. This system uses a little black box with a computer chip which alters the frequencies coming out of the stereo system. These altered frequencies simulate what you would hear in an actual surround sound environment with multiple speakers. And the amazing thing about it is that no matter where in the room you are, you hear the same great sound.

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maintain control over our emotions, mind and spirit. If we neglect our physical part, we become weak and unable to sustain that control. l Mental elements: The mental part of our personhood relates to what goes on with our brains. This involves the chemical and electrical impulses of brain activity. Just as it is possible to do physical exercise that strengthens our muscles, there are mental exercises that can improve the ability of our brains to function effectively. We can work on things like adding content, developing concentration, expanding our focus and enhancing brain flexibility. All of this activity occurs automatically in every person. It is part of the normal course of living life. But the everyday use of our brains does not tend to expand our abilities, only to keep them at the level of our normal daily operation. But it is possible to move ourselves to a higher level mentally. People who intentionally learn and practice mental skills are able to advance to a higher mental level. Those who do not will experience stagnation or decline. l Spiritual: When thinking of spiritual things, many people immediately think in terms of religion or the supernatural. This is the category where we address these topics, but the spiritual part of our being is more basic than that. This part is the very essence of our personhood. It is the part that makes each of us a unique individual. Our spiritual part expresses itself in our relationships. There are three relationship arenas where this plays out—with ourselves, with other people and in transcendent interactions. It is absolutely possible to develop the spiritual component within us and learn to express it more effectively. It involves learning and practicing specific

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skills which strengthen our spirit. It includes skills that relate to creativity, communication, analysis, decision making, imagination, and the like. There are certainly a lot of disgusting people in the world. You can open any newspaper and read about all the violence, hatred and other craziness that is rampant. Individuals can tame these negative aspects of their being and progress on to excellence by mastering the spiritual skills. Creating your system Creating our lives the way we want them to be is an almost unbelievable gift. But it doesn’t just happen. Just because we are walking, talking, living, breathing creatures doesn’t guarantee that we will attain excellence in our lives. It starts with a deliberate choice and progresses with a systematic plan of action. The choice emerges from the vision you create for your life. In your mind’s eye, when you are able to vividly see your desired outcome, you are in a position to begin making it a reality. Your plan of action is the ongoing process that, step by step, takes you to your vision. We become good at what we do. To become good at your vision you have to figure out what skills will take you there, then make doing them a part of your lifestyle. It requires the development of skills in each of the four areas. The way you have lived your life, up to this point, has created a lot of good. After all, it has brought you to where you are now. But if you allow yourself to be satisfied with that, you will find yourself stagnating as an individual, and overtaken by people who are taking the initiative to press forward. Like the surround sound system, you have to keep innovating in your life. If you don’t, you will lose out on life as you were meant to live it. But if you do move forward with continually new life innovations, the powerful pulsing of real life surround sound will create an environment where you will thrive beyond measure.

Dr. Freddy Davis is the Owner of TSM Enterprises and conducts conferences, seminars and organizational training for executives, managers and sales professionals. He is the author of the book Supercharged! as well as the Nutshell series of books for strengthening business. He may be reached by phone at (888) 883-0656 or by e-mail at Davis@iname.com.

heard on the street

inspiration of top industry leaders who collaborated to develop an innovative and strategic company in an evolving industry. “Most mortgage companies are slow to change and have outdated restrictions with an archaic process” said Rob Sampson, Chief Executive Officer and Co-Founder of bemortgage. “At bemortgage, we have removed the pain points and created a solution that provides a better experience for our customers first and foremost and an environment where our loan officers can truly thrive.” To aid in their growth, the company will launch a New Truth in Lending, a campaign intended to speak candidly about the mortgage process from each loan officer’s point of view. “Other mortgage companies focus on their brand first and loan officers second,” said Sampson. “We hope to flip this paradigm by creating a platform for the most respected members of the mortgage community. We are also fortunate to be partnering with Bridgeview Bank. Bridgeview Bank has over $1 billion in assets under management and a customer

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service level that is second to none. This partnership will benefit our customers because it gives us greater flexibility to provide financing for consumers when less traditional loans are necessary.” Mid America Mortgage Purchases Assets From Two Lenders

Mid America Mortgage Inc. has announced it has signed a letter of intent to purchase the assets of Oklahoma City-based American Southwest Mortgage Corporation and an affiliated firm, American Southwest Mortgage Funding Corporation. As part of the agreement, Mid America will incorporate American Southwest’s operations into Mid America’s mortgage platform and secure an interest in their respective pipelines and select assets. Further, Mid America will also offer employment to loan production staff members from each organization. “Mid America’s commitment to delivering a faster, more efficient

mortgage process via technology has put us in a unique position to partner with firms like American Southwest to revitalize and streamline their operations, which ultimately provides their customers with better service,” said Mid America Owner and Chief Executive Officer Jeff Bode. “As we make this transition, we do so with an eye toward minimizing disruption to American Southwest’s existing customers while also migrating its pipeline to our fully digitized origination and closing process.” As part of the agreement, American Southwest will transition the pipelines of both entities to the Mortgage Machine platform, Mid America’s proprietary loan origination system (LOS), and begin executing eClosings and eNotes. Click n’ Close was recently announced as the Official Mortgage Provider of NASCAR. “Joining forces with a progressive, highly reputable lender like Mid America presents a unique opportunity to unite two organizations with similar views on the need to combine superior customer service with user-friendly technology,” said Richard Carrington, President of American Southwest. “Furthermore, Mid America will able to leverage our footprint in markets not currently serviced by Mid America to expand its outreach to a

new and diverse customer base that clearly compliments the launch of Click n’ Close.” DataVerify and Finicity Join Forces on Real-Time Asset Verification

DataVerify and Finicity have announced an integration to provide digital, real-time asset verification to the mortgage lending industry. Earlier this year, Finicity launched a set of asset and income verification products that bring the benefits of big data into the digitization of the loan origination market. Among its new products, Finicity’s Verification of Assets (VoA) solution employs borrowerpermissioned financial account data to generate a real-time view of a borrower’s assets. As a data aggregator, Finicity is the only asset verification provider that is also a Consumer Reporting Agency (CRA) that directly collects, manages and secures data from financial institutions for an asset verification report. DataVerify offers a single-source continued on page 90

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MBA’s Mortgage Action Alliance A Message From MAA Chairman Gene M. Lugat ith the New Year just around the corner, I thought it would be a good time to take stock of what the Mortgage Action Alliance (MAA) accomplished in 2017 and underscore just how important it is for people in the real estate finance industry to stay engaged with MAA, MBA’s free grassroots advocacy network. MAA provides a quick, free and easy way to advocate directly to elected officials on issues that affect mortgage professionals’ day-to-day lives on issues including licensure, regulatory relief, and reforms to the National Flood Insurance Program (NFIP)—just to name a few of the issues that our advocates have spoken up about this year. It became easier than ever to participate in MAA this year with the release of the MAA App. It’s a one-stop-shop for MBA Advocacy where users can join MAA, connect with elected officials, respond to Calls to Action and learn about MORPAC, all from your mobile device. You can download the app at MBA.org/MAAapp. The numbers show how active MAA members were throughout 2017:

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l Sent more than 30,000 letters and tweets to elected officials on Calls to Action, a 218 percent increase from last year. l Ninety-eight percent of senators and 94 percent of representatives were contacted by advocates in all 50 states and the District of Columbia through MAA’s advocacy platform. l There are now a total of 23,002 MAA members, a 46 percent increase over 2016. l Seventy-five companies ran MAA campaigns. MAA’s Second Annual Action Week took place the first week of October this year. Action Week is a week-long event dedicated to helping real estate finance professionals learn how to become more engaged in political advocacy that supports our industry. This year, 63 companies participated in Action Week, up from 58 last year. The work of these companies resulted in 4,500 new MAA members, which was 84 percent more than last year and put us ahead of our membership goal for the year. One thousand, three hundred and twenty-two advocates downloaded the MAA App during Action Week, surpassing our goal of reaching 1,000 downloads. We like to say that MBA is the ‘One Voice’ of the real estate finance industry. MAA amplifies that voice by helping industry professionals contact their elected officials directly to let them know how legislation can impact local businesses in their communities. I encourage everyone in the mortgage industry to join MAA if you haven’t already by visiting MBA.org/JoinMAA. Your voice matters. Finally, I would like to thank all MAA members for speaking up for our industry in 2017, and wish everyone a happy holiday season and a healthy and prosperous new year. Gene M. Lugat is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. Gene is executive vice president, national industry and political relations for PrimeLending Inc.

managing consumer complaints continued from page 55

complaint is derived from the CFPB. Each complaint has a status that reflects action taken to date or the most recent response category provided. At a minimum, the statuses that should be consider are: l Pending Action by Company n Complaint has been forwarded to the company by Consumer Response and is awaiting a timely response within 15 calendar days of the date the complaint was sent to the company; or n Complaint has been sent to the compliance department from a consumer or a company employee, requiring procedures to recognize the commencement of the 15calendar day review period. l In Progress n An interim responsive explanation to consumer and the CFPB, indicating that the complaint could not be closed within 15 calendar days and that the final responsive explanation to consumer will be provided through the company portal at a later date; or n An interim responsive explanation to consumer from the company, indicating that the complaint could not be closed within 15 calendar days and that the final responsive explanation to consumer will be provided at a later date. l Provided Administrative Response n Indicates that the company provided an administrative response to CFPB, including one of the following response category types: “alerted CFPB,” “duplicate complaint,” “incorrect company” or “sent to regulator;” or n Indicates that the company provided an administrative response to consumer, including one of the following response category types: “alerted management,” “duplicate complaint,” “incorrect company” or “sent to regulator;” or

l Provided Closure Response n A final response to the CFPB regarding the consumer, indicating that the company provided one of the following response category types: “closed with explanation, “closed with monetary relief,” or “closed with non-monetary relief;” or n A final response to the consumer, indicating that the company provided one of the following response category types: “closed with explanation, “closed with monetary relief,” or “closed with non-monetary relief.” Processing Complaints When processing consumer complaints, it is critical to monitor the way the complaints are being reviewed. Just having a list of complaints is insufficient. It is a due diligence review! The monitoring process has to continue through the complaint procedures. This allows the company to move the complaint from an active to an archive basis, thereby ensuring that there is a timely review as well as appropriate record retention. For Active complaints, there are five process levels. These are: 1. Unread: Complaints that are appearing in the portal or complaint database for the first time with the timing convention that requires a timely response within 15 calendar days. 2. Due Soon: Complaints which require a response from the company in under 48 hours. 3. In Progress: Complaints to which the company has submitted an initial response, and which are awaiting a closure response. 4. Past Due: Complaints to which the company has failed to provide a timely response. The company must prioritize and respond to any complaints with a “Past Due” status. Important: Consumer Response shares information about delinquent responses within the Bureau and state

regulators will evaluate if the financial entity has responded in an appropriate timeframe. 5. Needs More Information: Complaints for which Consumer Response or the company has requested additional information. With respect to the Portal, the company must respond to requests for additional information appearing within 10 calendar days of receipt. For Archive complaints, there are seven process status levels. These are: 1. Closed With Explanation; 2. Closed With Monetary Relief; 3. Closed With Non-Monetary Relief; 4. Alerted CFPB or Management; 5. Duplicate CFPB Complaints Reported; 6. Incorrect Company; and 7. Sent to Regulator. Detailing the Complaint The company’s complaint log should designate the file location for compiling

complaint details and recording a narrative about the complaint. Each log should contain at least the following sections: l Primary Consumer Information: Name, contact information, and preferences for the consumer submitting the complaint and information indicating whether the person associated with the account is or was a servicemember or dependent or spouse of a servicemember. l Product Information: Type of product or service and type of issue for which the complaint is submitted. l What Happened: Consumer’s narrative description of what happened, issue, date of the incident, and monetary loss (if any). l Desired Resolution: Consumer’s description of what he or she considers a fair resolution to the complaint. l Response Recipients: The consumer and the individual(s) who will receive the company response.

l Initial Response: If the complaint is active and an initial response has been provided, an explanation for why additional time may be needed, and the date the initial response was sent. l Returned Response: If initial response to the consumer was provided, state the information relating thereto. l Company Response: After the company has provided a response, state such information as the response type, response date, and supporting information. l Company Public Response: If the company elects to provide a public response after providing a response to the consumer, state the response type, response to the complaint, and response sent date. l Attachments: Documents related to the complaint as provided by the consumer or the company related to the complaint. Timing the Response Lenders Compliance Group is often asked to provide

guidance with respect to what is considered a timely response to a consumer complaint. The answer is somewhat nuanced, as the timing requirement often depends on the alleged violation of a specific regulation. Many regulations set forth specific timing requirements for handling consumer inquiries. For instance, the Real Estate Settlement Procedures Act (RESPA) provides timing requirements involving a Qualified Written Request (QWR). While not necessarily a categorical consumer complaint it certainly can be considered one. A QWR is a written correspondence that a mortgage servicer receives from a consumer to resolve errors related to the account and/or obtain information regarding the account. Without reference to an extension of the time limit, a servicer must respond not later than 10 days (excluding legal public holidays, Saturdays, and Sundays) after the servicer receives an information request for the continued on page 86

40 Most Inﬂuential Mortgage Professionals Under 40 Honoree MBA and the industry are stronger because of your dedication and hard work.

JUSTIN WISEMAN Associate Vice President & Managing Regulatory Counsel Mortgage Bankers Association

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National Mortgage Professional Magazine’s

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Congratulations to Justin Wiseman

Are You Originatin Backwards? By Brian Sacks

et me ask you if this sounds familiar … you somehow got into the mortgage business and felt it would provide you with a way to earn a great living and have a great profession. You took the courses and passed the tests, and here you are, ready to generate new loans. When you started, and to this day, you probably believe a few things to be true. Take a minute and check these off I’ll wait.

l You MUST be available 24/7/365 and always return your phone calls. l You MUST work very hard to get referrals from Realtors and past clients since they control the business. l You MUST have all of the programs available today and the best prices.

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How are we doing so far? I know that this was the way I viewed the business when I started 32 years, and nothing has really changed for most originators. Years ago, I was fortunate to speak at an event where one of the other speakers was the famous marketer Jim Rohn. He spoke for about 90 minutes, but I heard one sentence that literally made me sit up in my chair and say “AHA!” He said: “If you want to be successful, simply look around at what everyone else in your business is doing and do the exact opposite.” You might even want to write that one down so you can refer back to it often. But let’s see how this applies to our business and how you can use it to change it. I actually could and should write a book on this topic alone but let’s cover the top three in this article. You must have a large stable of real estate agents and other professionals if you want to be successful I remember when I first started in the business, the deal was to go out to Realtor offices and Builders and do some cold calling. We were taught to feed them, be available all the time and drop off flyers with rates and information. The rule in our business was that Real Estate Agents and Builders, as well as other professionals like accountants and attorneys, controlled the buyers. If you wanted to build business, then you needed to get them to refer their clients to you. Most originators are still operating with this as the premise, but what if you were able to simply switch the tables and get them chasing you? I want you to stop reading for a minute and let what I am about to tell you really sink in. You must control the buyer so you can control your income! There is no rule or law that says buyers should call a Realtor or any other professional when they are looking for a home. In fact, calling a Realtor is actually backwards when you stop and think about it. The first thing a buyer should do when they are looking for a home is to meet with a lender. That way, they can determine what programs are best, gauge their comfort levels, and determine what price ranges they should be targeting when they finally do meet with a Real Estate Agent or Builder. Your job then is to get in front of the buyers before they get to anyone else. One of the obvious groups would be people who are currently renting and ready to buy. You must have great rates and points and all the products to succeed Again, what you are doing and were taught is completely illogical. Think about what we do. We need business, so we go out and start marketing.

We get leads if we are successful and then we try to find the correct programs to put these people in. But what if we only marketed to the people we knew met the criteria for the programs we already offer? For example as the national expert on working with Boomerang Buyers, I am always asked, “Don’t these deals take longer and aren’t they harder to work on?” The truth is that they are easier. Step One is to see what programs and overlays your company has. Then, only market to those who fit the criteria for the programs you offer. FHA/VA both allow buyers to be discharged two years from their bankruptcy to be eligible. So, go to a list broker and market only to those buyers who meet those criteria and are currently renting. There are a number of lenders I have found and worked with that offer programs one day after bankruptcy. Meet with their reps and learn their programs. You must work long hours and always be available This one is actually true if you are what I describe is a “Head of Lettuce” Loan Officer that is a generalist instead of being a specialist. You must be available when you don’t control the buyers and you are seen as a commodity. But when you become a specialist, people expect to meet with you during your hours. They expect you to charge more because you are solving a particular problem. There is a place in business for both WalMart and Tiffany’s, as well as Brooks Brothers and Men’s Warehouse. They have very different hours and very different expectations. Take a minute now and design your business so that you control your business and income so you can finally close more loans, make more money and enjoy your life.

Brian Sacks is a nationallyrenowned mortgage expert who has career closing of more than 5,924 transactions for more than $1 billion. He has trained, consulted and coached tens of thousands of loan officers and company owners over the past 31 years on how to close more loans, make more money, and still have a life. Brian is the host of “Top Originator Secrets,” which can be seen weekly on Mortgage News Network and on his blog. You can get more information and grab your free report on “How to Get Agents Chasing You” at TopOriginatorSecrets.com.

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identity of, and address or other relevant contact information for, the owner or assignee of a mortgage loan; and for all other requests for information, not later than 30 days (excluding legal public holidays, Saturdays, and Sundays) after the servicer receives the information request.4 That said, a general outline for a timing convention can be applied, in light of the Consumer Response expectations. Any timing response better than the timing rules required by the Bureau should be undertaken, and, of course, any statutory response pursuant to a regulatory requirement is not obviated by the Bureau’s expectations.5 Thus, the flow of the complaint process, as conceived by the CFPB, is one where the company provides a response to each complaint through the Portal within 15 calendar days of the complaint being sent to the financial institution via the Portal. When a complaint cannot be closed within 15 calendar days, the company may indicate that its work to close the complaint is “in progress” and provide a final responsive explanation to the consumer through the portal within 60 calendar days of the complaint being sent to the Portal. Handling the complaint process in this way, even if not initiated via the Portal, should be the basic format to implement by a company. Getting a “Past Due” in the timing requirement can lead to administrative action against a financial institution. If a response is not given within 15 calendar days, the complaint becomes “past due.” The company still is required to respond to complaints that are past due, but now the spotlight of regulatory scrutiny is highlighting the issue. The Consumer Responses position is that the company will not have the opportunity to select a company public response for any complaint where the initial or final closing response is delinquent. Investigation Each element of the complaint investigation contributes to its review and resolution. In our guidance to clients, we

recommend the following three steps in the complaint investigation. 1. Steps taken to respond to the complaint: This the narrative of the response, including a description of communications with the consumer. Attachments and narratives of all responses (written or oral) should be kept. 2. Communication(s) From the Consumer: Describes communications received from the consumer in response to the steps taken, attaching copies of all written communications received from the consumer in response. 3. Follow-Up Actions or Planned Follow-Up Actions: Describes any follow-up actions taken or planned to resolve the complaint. Realistically, there are many aspects to a complaint investigation. But, for many institutions, the findings can be denoted by certain possibilities. Here are a few of the common findings we have come across. l Third Party: Company believes complaint caused principally by actions of third party outside the control or direction of the company. l Isolated Error: Company believes complaint is the result of an isolated error. l Discontinued Policy or Procedure: Company believes complaint relates to a discontinued policy or procedure. l Opportunity for Improvement: Company believes complaint represents an opportunity for improvement to better serve consumers. l Company Acted Appropriately: Company believes it acted appropriately as authorized by contract or law l Misunderstanding: Company believes the complaint is the result of a misunderstanding. l Unable to Verify Facts: Company can’t verify or dispute the facts in the complaint. l Factual Dispute: Company disputes the facts presented in the complaint.

Resolution The Portal provides for certain potential resolutions and, frankly, these should be sufficient in a company’s policy and procedure for resolving consumer complaints. In the list below, I provide a basic outline of the possible resolutions. 1. In Progress: This is akin to the interim responsive explanation to the consumer and the CFPB, indicating that the complaint could not be closed within 15 calendar days and that the final responsive explanation to the consumer will be provided through at a later date. 2. Closed With Explanation: Final responsive explanation to the consumer, indicating that the company has provided an explanation tailored to the individual consumer’s complaint. 3. Closed With Monetary Relief: Final responsive explanation to the consumer, indicating that the steps taken or will be taken include objective, measurable and verifiable monetary relief to the consumer. 4. Closed With NonMonetary Relief: Final responsive explanation to the consumer, indicating the steps taken or will be taken, including other objective or verifiable relief to the consumer. 5. Administrative Response Categories: This is a category that bodes for the intervention of a regulatory review. 6. Alerted CFPB or Regulator: Used when the company cannot take action due to suspected fraud, a pending legal matter, or a complaint submitted by unauthorized third party. 7. Duplicate CFPB or Regulatory Complaint: Used when the company cannot take action because the complaint is a duplicate of a complaint the company has already received from the CFPB or the regulator and a response has been given. 8. Incorrect Company: Used when the company cannot take action because complaint is not related to the company.

9. Sent to CFPB or Regulator: Used when the company cannot take action because complaint is about a product or issue that needs to be routed to the CFPB or another regulator. Public Awareness of Complaints A financial institution should not lose sight of the fact that the Bureau publishes after a company confirms a commercial relationship with the consumer and responds with the status of In Progress, Closed with Explanation, Closed with Monetary Relief or Closed with Non-Monetary Relief or after a company has had the complaint for 15 calendar days, whichever comes first.6 The CFPB provides consumers who submit their complaints directly to the CFPB the opportunity to consent to publication of their complaint narratives in the Consumer Complaint Database.7 The CFPB began publication of consumer complaint narratives on June 25, 2015. The CFPB retains its discretion to withhold complaints from publication upon request from consumers, companies, or CFPB personnel, including, but not limited to, when one or more of the following are true, such as if the complaint: l Was fraudulently submitted on behalf of the consumer; l Was submitted without the actual knowledge of the consumer; l Would reveal confidential trade secret information; or l Involves a whistleblower or tipster, and disclosure could impact a law enforcement proceeding, was referred by the CFPB to another regulator. But, according to the Bureau, whether or not consent is given has no impact on how the CFPB handles the complaint. Indeed, the Portal does not indicate whether the consumer has consented to publication of the complaint narrative. Furthermore, the consumer may withdraw consent at any time and the narrative will be removed from the Consumer Complaint Database by calling the CFPB. The Bureau contends that it implements a personal information scrubbing standard and methodology to

the Portal, is the best way to ensure such protection. Information contained in this article is not intended to be and is not a source of legal advice. The views expressed are those of the author and do not necessarily reflect the views or policies of Lenders Compliance Group, any governmental agency, business entity, organization, or institution. No representation is given and no guaranty is offered with respect to the source, originality, accuracy, completeness, or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented herein. Footnotes

Jonathan Foxx, Ph.D., MBA is Chairman and Managing Director of Lenders Compliance Group, the first and only full-service, mortgage risk management firm in the United States, specializing exclusively in outsourced mortgage compliance and offering a suite of services in residential mortgage banking for banks and non-banks. If you would like to contact him, please e-mail Compliance@LendersComplianceGroup.com.

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1—This article will rely on the rules, guidelines, processes, and descriptions, as set for in the Company Portal Manual, Version 3.0, Consumer Financial Protection Bureau, April 2017. 2—For instance, see Foxx, Jonathan, CFPB’s Company Portal for Consumer Complaints, National Mortgage Professional Magazine, December 2012, Volume 4, Issue 12, pp 8-38. 3—I provided these nine steps in my FAQ, Steps for Responding to Consumer Complaints, published on Nov. 24, 2017. See MortgageFaqs.Blogspot.com/2017/11/Steps-ForResponding-to-Consumer.html. 4—§1024.36(d)(1)(ii)(2)(i). 5—The CFPB response time requirements do not replace or necessarily satisfy certain statutory or regulatory requirements (other than those found in section 1034(b), 12 U.S.C. 5534(b) of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010). 6—It may be possible to obtain a Freedom of Information Act (FOIA) exemption, though a request, the operatively set forth in 5 USC § 552(a)(3)(A). In the event that the CFPB receives a request for documents so designated, then the CFPB will follow the procedures set forth in FOIA regulations (see 12 CFR Subpart B, § 1070.10 et. seq.). 7—CFPB Policy Statement, dated March 19, 2015. 8—Stanger, Tobie, Days May Be Numbered for the Consumer Complaint Database, A plan to weaken the CFPB could eliminate a popular consumer protection tool, Feb. 10, 2017, Consumer Reports.

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remove personal information from the complaint to minimize the risk of re-identification. Whatever the case, with consumers’ consent, scrubbed complaint narratives are published when the company selects a public response or after the company has had the complaint for 60 calendar days, whichever comes first. An important take-away here is that after providing a final response of Closed with Explanation, Closed with Monetary Relief, or Closed with Non-Monetary Relief, Portal users do have the option to select from a structured list of public company response categories. If selected, that response would be eligible to be published in the Consumer Complaint Database. If no option is selected, no public company response will be published. The House Financial Services Committee has long wanted to terminate the Consumer Complaint Database, even if it has provided useful information and assistance not only to consumers but to businesses as well. Indeed, some members of this Committee seek the elimination of the Bureau’s authority to punish unfair, deceptive or abusive practices among banks and other lenders. According to the CFPB, database complaints have contributed to obtaining nearly $12 billion in relief to 29 million aggrieved consumers in the past five years.8 Whatever the future may be for the Portal, consumer complaints are here to stay, and every financial institution or supervised entity must take appropriate measures to ensure that financial protection is afforded all consumers. Implementing structured procedures to process consumer complaints, and, where possible, using the conceptual format offered by

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Prepare for the Inevitable: The Four Cornerstones of Career Insurance By Dr. Marty Martin

here is more to job security than mastering job search skills. There are plenty of books about resume writing, networking, interviewing and developing a LinkedIn profile. These job search skills are important, but not sufficient in an age when companies and even entire industries are undergoing radical changes. Career Insurance fills the void by preparing people for what’s to come–before it arrives. There are four cornerstones of Career Insurance; The organizing framework for putting together your own personal Career Insurance plan. These four cornerstones further solidify your survival in the turbulent waters of today’s economy:

l Embracing adaptation l Positioning for the next advance or change l Investing in cutting-edge skills l Tapping into abundant thinking, creativity, and emotional non-attachment Embracing adaptation You must get in touch with your built-in adaptive nature. This means being alert, responsive, and engaged; knowing how to survive in what sometimes feels like the jungle of work, careers, and jobs. A practical way to assess your adaptive qualities is to ask, write down or record your answers to these questions: l How did I overcome obstacles in the past? l What lessons can I draw from folks I know and those I don’t about how to bounce back and move forward? l Who can I lean on to support me emotionally when it seems as if I cannot or will not climb the summit of change? Your answers to these questions will put you in touch with your built-in adaptive nature. If adversity is foreign to you, then you probably know others in your life that have stories and secrets to share about how to tap into the resilient spirit that we all have. Positioning for the next advance or change A very important skill for Career Insurance is to predict what type of work is in demand, the supply of talent available to meet that demand, and how to position yourself to fill the gap. This skill will be used consistently throughout your career.

Self-assessment using surveys and questionnaires as well as soliciting feedback from peers will provide you with most of the information you need to map out these three scenarios: l Your desired career scenario l Your most probable career scenario l Your nightmare career scenario Your job is to vividly describe, in writing, the details of each of these three scenarios. After detailing each of the scenarios, determine what decisions and actions you must make while in your current position that will affect you in the short- and long-run in realizing your desired position in your company. Investing in cutting-edge skills Given the fast-paced change in the world of work, it is a good idea to learn new skills to increase your value as an employee. Today, you never really finish learning. If you do, you may find yourself and your career on a dead-end street. There are costs to learning new skills, yet, there are also benefits. The decision is yours to create or seize an opportunity to learn about skills now in demand in your industry, how to acquire those skills, and how to keep those skills on the cutting edge. Train for skills in demand in the future.

Tapping into abundant thinking, creativity, and emotional non-attachment Reflect back on a time when you or somebody else could only think of the downside of a situation or viewed the world from the perspective of loss, competition and survival. Those thoughts come from a scarcity thinking mindset. Scarcity thinking triggers fear and anxiety. If you more often than not think in the following way, then you may be suffering from scarcity thinking: l My job offer means that somebody else is without a job l My raise/promotion means that somebody else gets less of a raise/promotion l My acceptance at a training event means that somebody else is robbed of the change to grow and develop To stand out in today’s job market, you have to demonstrate value.

Demonstrating value is a twopart equation: First, let folks know about your past accomplishments. Second, and most importantly, express what you intend to do in the future. This holds true whether you are seeking another opportunity in your current company or an opportunity outside your company perhaps due to situations beyond your control such as restructuring and downsizing. Many organizations today are revamping their processes, updating their technology, and offering a different portfolio of goods and services with the same and different consumers. Are you poised to be as flexible as the market demands? Do you find yourself thinking “I’ve got by this long … I’ll be okay?” Or, do you find yourself thinking, “This will be rough initially, but I can see how it will be better in the long-run for me, our customers and the company.” It is the latter thought that illustrates abundant thinking. Abundant thinking has many benefits including creativity and innovation. After all, somebody had to make up the job of being a Webmaster. Why can’t you make up a job based upon a need or opportunity in your company? Building your career future The Four Cornerstones are the foundation of solidifying your job, career, and work future in this new world of work. The good news is that at each point in history when industry underwent radical changes, our ancestors adapted most with grace, poise and optimism. We seem to be at another inflection point where the exact future is not fully clear. Career Insurance is your survival tool. When not distracted by striving to make a living, you can make a difference.

Dr. Marty Martin has been speaking and training nationally and internationally for many years. His second book, Taming Disruptive Behavior was published by The American College of Physician Executives (ACPE) in 2013. Dr. Martin is the Director of the Health Sector Management MBA Concentration and Associate Professor in the College of Commerce at DePaul University in Chicago. He may be reached by e-mail at MartyM@DePaul.edu or visit DrMartyMartin.com.

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NA ATTIONAL REV E RSE E MOR TGA G E LEN DE R S ASSOCIAT ION

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platform for data verification and aggregation, fraud prevention and compliance assistance for clients, including top lenders and government agencies. With this new integration, Finicity’s VoA solution will be directly integrated into DataVerify’s DRIVE platform, a solution that automates the underwriting process to help lenders avoid loan quality issues. DataVerify operates at the junction of data verification and fraud prevention, quickly identifying the legitimacy of borrowers by comparing data across a variety of databases to identify risks of fraud, misrepresentation and data integrity. Lenders will now be able to access Finicity VoA reports through the DataVerify system as part of their loan review process. “DataVerify is a well-known and respected name in data verification, data aggregation and fraud prevention for loan originations, and we’re thrilled to bolster its solution with our VoA product,” said Steve Smith, Chief Executive Officer of Finicity. “The lending and credit decisioning space is moving towards automated, digital solutions built on open APIs and using buyerpermissioned data. Asset verification is just the beginning.” Brad Bogel, Senior Vice President of DataVerify, said, “In today’s digital age, consumers expect to get things fast. With real-time asset verification provided by Finicity, lenders that use our DRIVE platform will be able to get quick insight into a borrower’s financial information and make more efficient and smarter lending decisions. The data can be accessed and verified in a matter of clicks, shortening the loan approval process for a greater overall consumer experience.” Mortgage Professionals to Watch l Angel Oak Mortgage Solutions has announced the addition of nine new Account Executives to its ranks to help brokers grow their business. Adding additional coverage across the country, Brent Willis has joined in Nashville; Fabiene Montoya in Scottsdale, Ariz.; Virginia Becker in Indiana; Michael Weaver in Pittsburgh; Helen Salazar in San Antonio, Texas; Russ Wright in Portland, Ore.; and Scott Panique in Los Angeles; along with Eric Garcia and Steve Holtmann in inside sales. l New American Funding has named Virginia Martinez as Regional Sales Manager to cover its Southern California market

from the Central Coast to Coachella Valley. Martinez will oversee the daily operations of the region, while simultaneously working to expand the territory with the opening of new branches. Equity Prime Mortgage LLC has announced the hiring of Ed Abufaris as new Senior Vice President of Third-Party Originations (TPO). HomeBridge Wholesale has appointed Elias Mascobi to the role of Senior Renovation/Manufactured Housing Sales Manager. Primary Residential Mortgage Inc. (PRMI) has added mortgage industry veteran Brad Atwood to its branch located in Nashua, N.H. Mike Surber, President and Chief Executive Officer of USA Business Lending, has announced the restructuring of its real estate division, USA Realty International. David Linger will serve as the new Chief Executive Officer of USA Realty International, bringing nearly 40 years of real estate sales and management experience to the company. Tim Henkle, with 38 years of sales and management experience, will take on the role of President of USA Realty International. Primary Residential Mortgage Inc. (PRMI) has added mortgage industry veteran Eric Sinar to its Canton, Md. office. Sinar has 15 years of experience in the mortgage industry, specializing in first-time homebuying, FHA, VA and jumbo loans. Stearns Lending LLC has announced that Michelle Greenstreet has been appointed Chief Administrative Officer, responsible for human resources, facilities, marketing and communications. AmeriSave Mortgage Corporation has announced that Robert J. Smith has been named to the position of company President, replacing Ed Abufaris, who recently announced he was leaving the company. Informative Research has named Kimberly Donovan as their newest Vice President of Regional Sales. Informative Research has also named Bryan Saxen as the company’s newest Senior Account Executive, and has announced Claudia Dorman as their newest Vice President of National Sales. Cloudvirga has appointed Steve DeSantis as its new Chief Financial Officer, responsible for driving Cloudvirga’s financial strategies to accelerate its growth. Mortgage Banker Corey

leadership and management experience in the industry, including expertise in credit risk, underwriting, operations, regulatory compliance, postclosing, policies and procedures and project management. l Assurant has announced that Marc Connelly has joined Assurant Mortgage Solutions as National Sales Director, where he will focus on growing the title and origination valuations product lines for Assurant. l Proper Title LLC has announced the hiring of Gabe Krych as Senior Commercial Title Underwriter.

Your turn National Mortgage Professional Magazine invites its readers to submit any information, events, passages, promotions, personal or professional occurrences that seem appropriate and/or other pertinent data to the attention of: Heard on the Street/Mortgage Professionals to Watch column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

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

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Warehouse Lending. Barnes will report to Patricia Robins, SVP and Senior Managing Director of Residential Mortgage Warehouse Lending. l Mortgage Network Inc. has announced that Sean Doucette has joined the company as a Mortgage Loan Officer serving the central Maine area, bringing more than 15 years of banking and mortgage experience to the company. l Planet Home Lending LLC has announced that Suzy Lindblom has joined the company as Chief Operations Officer for Fulfillment. Lindblom has 29-plus years of

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Vandenberg has joined Platinum Home Mortgage Corporation in Lafayette, Ind. Vandenberg has 17 years of local banking experience and brings with him an array of experience in consumer and commercial lending. Collateral Analytics has announced the addition of John Holbrook as Executive Vice President of Business Strategy, further enhancing its team of industry veterans, data scientists and IT engineers. Norcom Mortgage has opened its third branch in Massachusetts, located in Belchertown, Mass. to be led by Miranda RonkeCzarniecki, an 18-year veteran of the mortgage industry, who has been appointed Branch Manager. GSF Mortgage Corporation has added Ebe and Deb Cotton to its Fishers, Ind. branch office. Branch Manager Ebe Cotton joins GSF with more than 35 years of experience in the mortgage business. Deb Cotton will serve as Retail Development Executive and Indiana Sales Manager for the branch. GSF has also announced the addition of 20-plus year veteran Dan Ortiz as a Loan Officer to its Lakeland, Fla. branch. Jonathan Kearns, Senior Vice President of Technology Solutions at eSignSystems, a division of DocMagic, has been appointed to the Mortgage Industry Standards Maintenance Organization (MISMO) Residential Standards Governance Committee. OpenClose has announced that it has hired four Senior Developers to arm the company with additional resources to architect new products and enhance existing solutions: Gary Meink, Beau D’Amore, Jamal Waring and Christopher Price. Mortgage Guaranty Insurance Corporation (MGIC) has hired Lisa Lanik as Account Manager for the state of Tennessee, exclusive of Memphis. Lanik brings more than 23 years of mortgage industry experience to her new role, with an extensive background in mortgage financing, from loan originations and underwriting to mortgage insurance. Movement Mortgage has hired former IBM and Accenture executive Henry Santos as its new Chief Information Officer. Sterling National Bank has announced that David Barnes has joined the bank as Vice President and Managing Director of Residential Mortgage

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Attention Recruiters, Business Development Managers and HR Professionals PRMG 1-855-PRMG-FAN! (855-7764-326) www.PRMG.net Built by originators for originators, PRMG was born from a vision of creating a company with a unique culture focused on the successes of the producer. We understand what it takes to be a successful originator and cultivate new business every day.

REMN Wholesale 732-738-7100 www.remnwholesale.com Although REMN Wholesale is part of a large corporation, it feels like a “Mom and Pop”-style company. We encourage our team members to grow and we train and promote each individual to their full potential. As a national company, REMN provides many opportunities for employment from coast to coast.

United Wholesale Mortgage 800-981-8898 www.uwm.com/careers Voted the #1 place to work in Metro Detroit, UWM is looking for A players to join our talented team. Our business is driven by our culture, and our people are our greatest asset. If you’re looking for the opportunity of a lifetime, apply to UWM today!

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We are pleased to announce a new package that will give your firm the recruiting tools to instantly shift your recruiting efforts into high gear using a multimedia, market-saturating approach. We will utilize the most successful methods that our clients have been using to find, identify and place top talents for your company. We have designed these packages with the concept of making it less expensive to give you the ability to reach more people.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE 1220 Wantagh Avenue Wantagh, New York 11793-2202 516-409-5555 Fax: 516-409-4600 E-mail: advertise@MortgageNewsNetwork.com

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calendar of events

JANUARY 2018 Friday, January 12 New England Mortgage Expo 2018 Mohegan Sun 1 Mohegan Sun Boulevard Uncasvile, Conn. For more information, visit TheWarrenGroup.com. Thursday January 18 FAMP Palm Beaches Chapter 2018 Annual Trade Show Hilton Hotel Airport West Palm Beach 150 Australian Avenue West Palm Beach, Fla. For more information, call (561) 291-3370. Thursday-Friday, January 18-19 NEXT 2018 InterContinental Dallas 15201 Dallas Parkway Addison, Texas For more information, visit NEXTMortgageEvents.com.

Tuesday-Friday, February 6-9 Mortgage Bankers Association National Mortgage Servicing Conference & Expo 2018 Gaylord Texan 1501 Gaylord Trail Grapevine, Texas For more information, visit MBA.org.

Thursday, March 8 FAMP Broward Chapter 2018 Trade Show Bonaventure Hotel & Conference Center 250 Racquet Club Road Weston, Fla. For more information, visit BrowardFAMP.org. Sunday-Thursday, March 25-29 35th Annual Regional Conference of Mortgage Bankers Associations Harrah’s Resort & Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, visit MBANJ.com. APRIL 2018 Wednesday-Friday, April 4-6 NAPMW 2018 Annual Conference Harrah’s Las Vegas 3475 South Las Vegas Boulevard Las Vegas For more information, visit NAPMW.org.

Mortgage Bankers Association National Secondary Market Conference & Expo 2018 New York Marriott Marquis 1535 Broadway New York, N.Y. For more information, visit MBA.org.

Tuesday-Wednesday, April 24-25 Mortgage Bankers Association National Advocacy Conference 2018 Capital Hilton 1001 16th Street NW Washington, D.C. For more information, visit MBA.org.

AUGUST 2018 Wednesday-Saturday, August 15-18 Florida Association of Mortgage Professionals 2018 Annual Convention & Trade Show Walt Disney World Dolphin 1500 Epcot Resorts Boulevard Lake Buena Vista, Fla. For more information, visit MyFAMP.org.

Monday-Wednesday, April 30-May 2 American Mortgage Conference 2018 Pinehurst Resort 80 Carolina Vista Drive Pinehurst, N.C. For more information, visit NCBankers.org. MAY 2018 Thursday, May 10 Maryland Mortgage Bankers and Brokers Association Annual Conference 2018 Loews Annapolis Hotel 126 West Street Annapolis, Md. For more information, visit MMBBA.org. Sunday-Wednesday, May 20-23 Mortgage Bankers Association Commercial/Multifamily Servicing & Technology Conference 2018 InterContinental Miami 100 Chopin Plaza Miami For more information, visit MBA.org.

OCTOBER 2018 Sunday-Wednesday, October 14-17 Mortgage Bankers Association 2018 Annual Conference & Trade Show Walter E. Washington Convention Center 801 Mt. Vernon Place NW Washington, D.C. For more information, visit MBA.org. DECEMBER 2018 Saturday-Monday, December 8-10 NAMB National 2018 Caesars Palace 3570 South Las Vegas Boulevard Las Vegas For more information, visit NAMB.org.

Thursday-Sunday, April 12-15 CONNECT 2018 Westin Buckhead Atlanta 3391 Peachtree Road • Atlanta For more information, Visit CONNECT2018.org. To submit your entry for inclusion in the National Mortgage Professional Calendar of Events, please e-mail the details of your event, along with contact information, to newsroom@mortgagenewsnetwork.com. *Looking for additional exposure at key industry events? Call 516.409.5555, ext. 4 to discover how to maximize your event coverage.

n National Mortgage Professional Magazine n DECEMBER 2017

FEBRUARY 2018 Tuesday, February 6 Florida Association of Mortgage Professionals Central Florida Chapter 2018 Trade Show Hilton Orlando/Altamonte Springs 350 Northlake Boulevard Altamonte Springs, Fla. For more information, visit MyFAMP.org.

MARCH 2018 Sunday-Wednesday, March 4-7 Mortgage Bankers Association 2018 Mid-Winter Housing Finance Conference The Ritz-Carlton, Bachelor Gulch 130 Daybreak Ridge Road Avon, Colo. For more information, visit MBA.org.

Monday-Tuesday, April 23-24 Mortgage Bankers Association 2018 State and Local Workshop Capital Hilton 1001 16th Street NW Washington, D.C. For more information, visit MBA.org.

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Monday-Thursday, January 22-25 Mortgage Bankers Association Independent Mortgage Bankers Conference 2018 The Ritz Carlton, Amelia Island 4750 Amelia Island Parkway Fernandina Beach, Fla. For more information, visit MBA.org.

Thursday-Saturday, February 15-17 NAMB Focus: Sales and Marketing Conference Hilton Sandestin Beach Golf Resort & Spa 4000 Sandestin Boulevard South Miramar Beach, Fla. For more information, visit NAMB.org.

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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.

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ACES Risk Management delivers web-based audit technology solutions, as well as powerful data and analytics, to the nation’s top mortgage lenders, servicers, investors and outsourcing professionals. A trusted partner devoted to client relationships, ARMCO offers best-in-class quality control and compliance software that provides U.S. banks, mortgage companies and service providers the technology and data needed to support loan integrity, meet regulatory requirements, reduce risk and drive positive business decisions.

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866-318-2981 Partners.ReverseFunding.com/LearnMore TagQuest www.tagquest.com 888-717-8980 TagQuest is a full service marketing firm created specifically for the ever changing mortgage business. We have tested and proven campaigns for FHA -VA - HARP - CONVENTIONAL loan types. TagQuest knows what it takes to generate quality leads whether through direct mail marketing, telemarketing, internet leads, data lists, tracking systems, or any combination thereof. TagQuest will brand your company, prepare targeted marketing campaigns that generate interest in your company, and most importantly, show you how to turn sales leads into repeat customers.

PRIVATE FINANCING

Reverse Mortgage Funding LLC (RMF), one of the nation's top Home Equity Conversion Mortgage (HECM) lenders, delivers industry-leading products, top-quality service, and advanced technology platforms to help originators grow their business by adding reverse mortgages to their product mix. We offer line-of-credit, refinancing and home purchase options with flexible repayment for homeowners and buyers age 62+, plus service and support to help facilitate the transaction. (NMLS ID: #1019941)

WHOLESALE/CORRESPONDENT LENDERS

Greenbox Loans, Inc. is a proven leader in the Non-QM & Non-Prime lending environment offering bank statement programs, foreign national lending solutions, along with programs allowing for recent short sale, foreclosure, bankruptcy for borrowers as low as 500 Fico Score. Greenbox Loans, Inc. is a national lender offering its programs through a multiple of channels including Retail, Wholesale, and Investor Specialty division.

WHOLESALE LENDERS

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

n National Mortgage Professional Magazine n DECEMBER 2017

PUBLICATIONS

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Get MORE with Angel Oak Mortgage Solutions. © 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-to-business communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. 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. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Employer and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, veteran status and other classifications protected under the law. MS075 0817