National Mortgage Professional Magazine December 2018 by ambizmedia

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N A T I O N A L

Vendor or Partner: Always Know the Difference By Michael O’Connell

D E C E M B E R

26 The One Reality None of Us Likes to Hear By Brian Sacks

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M O R T G

V O L U

A SPECIAL FOCUS ON “BUSINESS PLANNING FOR 2019”

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How Mortgage Brokers Can Win More Business in 2019 By Mat Ishbia ............................................................................................58

A L

Being You! (aka Exploring Your Niche) in the New Year By Bill Packer ............................................................................................62

2019: It’s Time to Humanize Your Brand By Sue Woodard ..................64

The Goldilocks Mortgage Industry: A conversation with Mike Dubeck, CEO and President, Planet Home Lending.......... 66

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Is Your Productivity Being Killed by Compliance? By Jeanine Schottler ..................................................................................68

The Death of the Mortgage Professional By Robert J. Clennan ..........70

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

Start the New Year Right With an Improved Customer Engagement Strategy By Mike Eshelman ..............................................72

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Reimagining Loan Distribution By Ethan Ewing ....................................74

New Technologies to Roll in the New Year By Curt Tegeler ................76

Market Slowing, Margins Tightening, Massive Layoffs … Oh My! By Shirleen Von Hoffmann ........................................................................78

Tomorrow Started Yesterday By Eric Weinstein ....................................79

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FEATURES

ARMCP Membership Hits the 1,600 Mark ..............................................6

N N H O N N

The “Fake” Market Has Ended, Are You Ready to Compete? By Tom Hutchens ........................................................................................8 The Elite Performer: What Will You Do With 2,000 Hours? By Andy W. Harris, CRMS ..........................................................................8

48 Are You Ready for the New URLA? By John Haring

Why Professionalism Matters ................................................................10

V I S I T

Company

Web Site

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5 Arch Funding Corp. ........................................5arch.com/NMP ................................................................7 Angel Oak Mortgage Solutions ............................ www.angeloakms.com ......................................Back Cover Avantus ............................................................ www.avantus.com ........................................................77 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................61 Caliber Home Loans.............................................. www.caliberwholesale.com ..............................................67 Capital One.......................................................... www.capitalone/financialinstitutions ..................................5 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................13 & 60

56 NCRA Compliance Services Launched at 26th Annual Conference in Reno By Terry W. Clemans

Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................19 DocMagic .......................................................... www.docmagic.com ........................................................9 Greenbox Loans, Inc........................................... www.greenboxloans.com ........................Inside Front Cover Lykken On Lending ............................................ www.lykkenonlending.com ............................................78 MBS Highway .................................................... www.mbshighway.com/MNN ..........................................47 Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................44 & 45 NAMB+ ............................................................ www.nambplus.com ......................................................23

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Recruiting, Training and Mentoring Corner: Business Planning 2019 … Time to Nail Down Your Loan Officers’ Business Plans By Dave Hershman ....................................................................................12

Amendments to the New Jersey Residential Mortgage Lending Act By Gavin T. Ales ..................................................................18 Business Planning for 2019: Baby Boomers to Millennials..................20 NAMB Perspective ..................................................................................22 The Mortgage Godfather: Adapting to Technology? No Better Time Than Now! By Ralph LoVuolo Sr. ..................................28 Machine Learning in Marketing By Noel Riddle ....................................40 Problem-Solving Still Needed in the Mortgage Industry By Pam Marron ..........................................................................................42 Tony’s Corner: A Message From NAMMBA Founder & CEO J. Tony Thompson III, CMB ............................................................46 The NAPMW Report ................................................................................50 MBA’s Mortgage Action Alliance ............................................................53 BrokerNATION: Tony Davis of Atlantic Home Mortgage By Andy W. Harris, CRMS ........................................................................54 An Increasing Number of Parents Are Refinancing Homes to Help Their Children By Jackie Roberson ............................................80

COLUMNS New to Market ..................................................................................14 News Flash: December 2018 ............................................................16 Heard on the Street ..........................................................................30 Outstanding Places to Work ............................................................84 NMP Calendar of Events ..................................................................85 NMP Resource Registry....................................................................86

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

Web Site

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NAMB Focus ...................................................... www.namb.org ..............................................................21 NAMMBA ..........................................................www.nammbaconnect.org .............................................. 55 NAPMW ............................................................ www.napmw.org ....................................................73 & 79 NAWRB ............................................................ www.nawrb.com ............................................................43 New American Funding ...................................... www.newamericanfunding.com ......................................88 NMP U .............................................................. www.nmpucoaching.com ........................................17 & 75 NRMLA.............................................................. www.nrmlaonline.org ....................................................63 OSI Express........................................................ www.osiexpress.com/mlslink ............................................1 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................15, 71 & Inside Back Cover Quicken Loan Mortgage Services.......................... www.qlmortgageservices.com/strongertogether ................11 REMN................................................................ www.remnwholesale.com ..............................................31 Ridgewood ........................................................ www.ridgewoodbank.com ..............................................68 TagQuest .......................................................... www.tagquest.com ........................................................65

DECEMBER 2018 Volume 10 • Number 12

FROM THE

publisher’s desk

Planning for a great 2019 As we approach the end of the year, it’s starting to look a lot like business planning season. You 1220 Wantagh Avenue • Wantagh, NY 11793-2202 know … that time each year when we look back at our performance over the past 12 months and Phone: (516) 409-5555 • Fax: (516) 409-4600 lay our best plans for improving our operations in the year ahead. As we look back over 2018, I Web site: NationalMortgageProfessional.com think most will agree that it was a pretty exciting year. What will next year hold? That’s largely up to STAFF Eric C. Peck Joel M. Berman what we decide to do. Editor-in-Chief Publisher - CEO (516) 409-5555, ext. 312 (516) 409-5555, ext. 310 One thing we know every top industry firm will be working on next year will be recruiting top ericp@mortgagenewsnetwork.com joel@mortgagenewsnetwork.com talent. As we move deeper into the purchase money market, the ability to work closely with Joey Arendt Beverly Bolnick borrowers in a way that wins trust and business will be increasingly valuable. Fortunately, we know Art Director VP-Sales & Marketing (516) 409-5555, ext. 323 (516) 409-5555, ext. 316 the kinds of people to look for. In fact, we profile 40 of them for you in this issue. joeya@mortgagenewsnetwork.com beverlyb@mortgagenewsnetwork.com Each year at this time, we focus some well-earned attention on the nation’s best young talent. Scott Koondel Phil Hall VP of Operations Managing Editor This is the issue in which we bring you “National Mortgage Professional Magazine’s 40 Under 40: (516) 409-5555, ext. 324 (516) 409-5555, ext. 312 The 40 Most Influential Mortgage Professionals Under 40.” scottk@mortgagenewsnetwork.com philh@mortgagenewsnetwork.com What a list we have for you this year! We are truly fortunate to have such talent in our industry. Richard Zyta Francine Miller Social Media Ambassador Advertising Coordinator Be sure to browse the list. Just knowing that we have so many young stars in this business gives (516) 409-5555 (516) 409-5555, ext. 301 richardz@mortgagenewsnetwork.com francinem@mortgagenewsnetwork.com me hope that 2019 is going to be another great year. Rick Grant Dylan Pollock Many of our readers are just returning from NAMB’s last conference of the year, NAMB National. Special Reports Editor Administrative Assistant NAMB’s next show, NAMB Focus: Technology Conference & Trade Show, will take place (570) 497-1026 (direct) (516) 409-5555, ext. 314 (516) 409-555, ext. 311 dylanp@mortgagenewsnetwork.com Wednesday-Saturday, Feb. 6-9 at the Innisbrook Golf & Spa Resort in Tampa, Fla. If your business rickg@mortgagenewsnetwork.com relies on good technology (and it does!), this is one event you should consider attending. ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact Two other articles I want to draw your attention to before I get into this month’s Special Focus. VP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail beverlyb@mortgageThe first is an article written by John Haring, Director of Product Management for Ellie Mae, titled newsnetwork.com. “Are You Ready for the New URLA?” Fannie Mae and Freddie Mac published the new Uniform ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck Residential Loan Application (URLA) form back in 2016. This article will help make sure you’re ready. at (516) 409-5555, ext. 312 or e-mail ericp@mortgagenewsnetwork.com. The deadline for submissions The other piece I want to highlight this month is a message From National Association of is the first of the month prior to the target issue. Minority Mortgage Bankers Association (NAMMBA) Founder and CEO J. Tony Thompson III, CMB. SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@mortgageIn his article, “How Should Leaders Respond to Industry Losses? Invest in Diversity,” he gives you newsnetwork.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. some great advice to consider as you go into the new year. Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the And that’s what much of the rest of this issue is focused on … the critically-important work of authors alone and do not imply the opinion or endorsement of Mortgage News Network Inc., or the offiplanning for a successful 2019. We all know the old saying, “Failure to plan is planning to fail.” As 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) you prepare you team for last minute planning sessions, make sure they’ve read these articles. and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activSetting the right strategy for your efforts next year will be very important. To help you, we bring ities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement you a number of articles that your top executives should consider. First, read “Start the New Year of the product and/or services by Mortgage News Network Inc., NAMB, NAPMW, NCRA, and other state mortgage trade associations. Right With an Improved Customer Engagement Strategy,” by Mike Eshelman, Head of Consumer National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage Finance at Jornaya. It really is all about the borrower now and frontline originators that don’t realize 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 that will lose out to those that do. 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. Then, see our Q&A with Mike Dubeck, CEO and President of Planet Home Lending. Find out why he cautions us to remember our fairy tales. In “The Goldilocks Mortgage Industry,” Dubeck explains why lenders can’t be too big or too small next year. They have to be just right for success. In a similar vein, read Shirleen Von Hoffmann’s article, “Market Slowing, Margins Tightening, Massive Layoffs … Oh My!” She is a nationally-known top producer, author, speaker and writer. Also, don’t miss Robert J. Clennan’s article, “The Death of the Mortgage Professional,” President of Mortgage Solutions of Colorado LLC d/b/a Mortgage Solutions Financial and Ag-America. Finally, our monthly contribution from Eric Weinstein should be considered as you set your strategy for next year. This month, he offers “Tomorrow Started Yesterday.” Much of your strategic planning for next year will be concerned with your marketing. What loan products will you promote to what markets and through which marketing channels. To help you, we bring you a couple of great articles. First, read “2019: It’s Time to Humanize Your Brand,” from Sue Woodard, Chief Customer Officer with Total Expert. Sue is a well-known industry expert and her advice is spot on. Then, check out “Being You! (aka Exploring Your Niche) in the New Year,” by Executive Vice President and Chief Operations Officer at American Financial Resources Inc. (AFR). Ultimately, the rubber will have to meet the road. For tactical advice that you can put into play right away, we bring you the following excellent pieces as part of this month’s special focus: l “How Mortgage Brokers Can Win More Business in 2019,” by Mat Ishbia, President and Chief Executive Officer of United Wholesale Mortgage (UWM) l “Is Your Productivity Being Killed by Compliance?: It Doesn’t Have to Be,” by Jeanine Schottler, Director of HR Field Services at Oasis Outsourcing Inc. l “Reimagining Loan Distribution,” by Ethan Ewing, Founder of ProPair l “New Technologies to Roll in the New Year,” by Curt Tegeler, Chief Executive Officer at WebMax You will also, as always, find all of the fantastic trade show information, compliance news and company news that we bring you every month in the pages of National Mortgage Professional Magazine. We hope this issue helps you and your team prepare for a wonderful year ahead. And, of course, this is also the Holiday Season, when we take time to be thankful for the many blessing we have received this year in the form of strong businesses, good friends and great experiences. For our part, we are always grateful to have you as a reader, but during this special time of year we are especially thankful. We send you our heartfelt wishes for a safe and happy holiday season with your loved ones and a very successful New Year. Sincerely, Joel M. Berman, Publisher-CEO Mortgage News Network Joel@MortgageNewsNetwork.com

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Where experience and new ideas intersect

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 2018-2019 BOARD OF OFFICERS & DIRECTORS E X E C U T I V E

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

Rocke Andrews, CMC, CRMS President-Elect Rocke.Andrews@NAMB.org

Michelle Velez, CMC Vice President Michelle.Velez@NAMB.org

B O A R D

George Burkely, CRMS Treasurer George.Burkley@NAMB.org

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

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

D I R E C T O R S

Michael DeSantis Mike.DeSantis@NAMB.org

Wayne King, CRMS Wayne.King@NAMB.org

Linda McCoy, CMRS Linda.McCoy@NAMB.org

Matt Oliver Matt.Oliver@NAMB.org

Marty Pfeiffenberger MartyP@ NAMB.org

Kimber White, CRMS Kimber.White@NAMB.org

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

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

National Association of Professional Mortgage Women 6000 Gisholt Drive, Suite 200 l Madison, WI 53713 l Phone: (608) 886-9817 l E-mail: Admin@NAPMW.org l Web site: NAPMW.org

2018-2019 NAPMW NATIONAL BOARD OF DIRECTORS

Laurel Knight-Keane National President President@NAPMW.org

Glenda Mooney President-Elect PresElect@NAPMW.org

Tobi Libbra Vice President NVP1@NAPMW.org

Rolanda Legg Vice President NVP2@NAPMW.org

Jaclyn Weedin Secretary NatSecretary@NAPMW.org

Nicole Shea Treasurer NatTreasurer@NAPMW.org

Robin Hart Parliamentarian Parliamentarian@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

DECEMBER 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

2018-2019 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

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

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

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

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

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

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

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

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

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

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

Roy Goodwin Compliance Services Director (630) 539-1525 RGoodwin@ NCRAInc.org

ARMCP Hits 1,600 Mark, Nears Official Site Launch Having just reached the milestone of 1,600 members, the Association of Residential Mortgage Compliance Professionals (ARMCP) is now also nearing completion of its new Web site, a state-of-the-art site designed specifically to fulfill the needs of residential mortgage compliance professionals. The design and development have taken several years to bring to the point of launch. This is just what our organization needs. If you have not yet joined the ARMCP, please contact Jonathan Foxx, ARMCP Founder and President, at Info@ARMCP.org and you will be sent an invitation. ARMCP’s current digital abode is on LinkedIn. The LinkedIn group will be kept while also moving to the larger new home at the brand new site. The association be sending announcements your way soon, via LinkedIn and other media resources, with the membership link. The site is expected to launch officially within the next 90 days. ARMCP is the first and only independent, national organization in the country devoted exclusively to residential mortgage compliance professionals. The association’s independence means it is not affiliated with any profit-oriented enterprise. Membership consists solely of those members who have joined it on their own and were not solicited to join via solicitations from third-party lists or subscriptions. Regular members pay no membership fee … independence is the key to the value of ARMCP’s advocacy! Want to join or create a committee? ARMCP would like to hear from you! For more information, visit ARMCP.org.

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n National Mortgage Professional Magazine n DECEMBER 2018

Brokers and Lenders Welcome.

The “Fake” Market Has Ended, Are You Ready to Compete? By Tom Hutchens

DECEMBER 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

hose of you who have been Loan Originators for eight or nine years are well-experienced professionals. Yet, your hard work and successes have been achieved in an artificial market, where low interest rates have been enabled by the Federal Reserve’s mission to sustain economic recovery and curb inflation. Now that we have entered a real market–where interest rates are unpredictable and refis more difficult to validate–Loan Officers must find new ways to compete. You will have to change your marketing approach and embrace different products. Refis are down 40 percent this year and the trend will continue. That is a lot of business to replace. Are you ready for this reality to set in? I recently hosted a Webinar for Originators on “New Strategies for a Changing Market” (bit.ly/Nov18MBSWebinar), offering these and other essential tactics for proving your value to consumers: l Switch from service provider to trusted advisor: In the real market, the risks of moving up or refinancing can be more obvious than the benefits. Being likeable and efficient is no longer good enough to close business. You must find new ways to improve your clients’ long-term debt and equity situations, because reducing monthly P&I payments won’t be easy. l Understand and embrace new tools: Homebuyers are likely to see little value in moving up or refinancing if you rely on traditional mortgage calculator data and assumptions. To overcome this challenge, you should consider adopting some of the new Internet tools that make it easy for you to compare amortization schedules, consider the best strategies for cash-out refinancing, and explore various short-term cost versus equity building scenarios. You will need these tools to convince borrowers to act in an uncertain market. l Increase your product expertise and portfolio: Learning about and offering non-QM loan products is the best way to replace volume lost from the refi channel. Non-QM loan volume will continue to grow as entrepreneurs, the selfemployed, investors and others discover the benefits of products that are tailored to meet their needs. Non-QM products were introduced just a few years ago by innovators who correctly foresaw the needs of changing markets and they will be even more attractive in the real market. At Angel Oak Mortgage Solutions, our mission is to help Loan Officers succeed. Our Account Executives are eager to elaborate on the ideas I’ve outlined here. We can help you increase volume and profits in today’s changing business environment. To learn more and build a mutually-beneficial relationship with Angel Oak, call (866) 837-6312 or learn more at AngelOakMS.com/MAP. Tom Hutchens is Executive Vice President, Production at Angel Oak Mortgage Solutions, an Atlanta-based wholesale and correspondent lender leading the non-QM space for four years and licensed in over 35 states. Tom has been in the real estate lending business for nearly 20 years. He may be reached by phone at (855) 5394910 or e-mail Info@AngelOakMS.com.

SPONSORED EDITORIAL

nmp news flash

continued from page 17

while their rents are increasing. According to a data analysis by RENTCafé of the top 100 cities with the largest rental stock, the average apartment has seen a 52-square-foot reduction over the last 10 years. Today, an average apartment measures 941 square feet. The smallest apartments are found in Seattle (711 square feet), Manhattan and Chicago (both at 733 square feet), while Florida’s capital city of Tallahassee boasts an average apartment size of 1,038 square feet. Alas, renters are getting less bang for their buck: Rents in newly-built apartments have increased by 28 percent, but their size is five percent smaller compared to 2008. Not surprisingly, the most expensive housing markets saw the greatest rent hikes: Denver’s apartment rents skyrocketed by 84 percent in the last 10 years while the average size of apartments decreased by 11 percent. Other notable price hikes include Seattle (rents up by 74 percent in 10 years) and San Jose (rents up 63 percent in 10 years). NewDay USA Honors Vets at Annual “Bring a Veteran to Work Day”

NewDay USA recently honored area veterans with ceremonies and tributes during its Third Annual Bring a Veteran to Work Day at the company’s Fulton, Md. headquarters. The event included a moving keynote address from Captain Joseph Stewart, USN (Ret.), former Surface Warfare Officer, former Executive Officer to the Director of the Defense Intelligence Agency during Sept. 11th, 2001, and past Naval Academy professor. Additional guests included Army Captain Patrick Horan, USA (Ret.), an Iraq War Veteran; Gold Star Mothers, American mothers who lost sons or daughters in service of the United States Armed Forces; members of the NewDay Five who achieved the top enlisted rank in their respective branch of military service; and reps from Baltimore Station, a residential treatment

program supporting veterans and others who are transitioning through the cycle of poverty, addiction and homelessness to the path of self-sufficiency. “Having local veterans here at our Maryland headquarters is an encouraging reminder to our staff and executives of the work we do every day in service to our veteran community,” said NewDay’s executive chairman, Rear Admiral Thomas C. Lynch, USN (Ret.) “Our Third Annual Veteran’s Appreciation Day is dedicated to the commitment and sacrifice veterans and their families make for our country.” In addition to providing much needed financial services to veterans and service members, NewDay USA team members volunteer hundreds of hours each year at a Baltimore Station, laying and retrieving wreaths at Arlington National Cemetery, and washing veteran monuments on the National Mall. NewDay USA is a Platinum Sponsor of the Global War on Terror Memorial Foundation, an active supporter of the Medal of Honor Foundation, and the USO. Home-Flipping Activity Sinks in Q3 Home flipping activity hit a 3.5-year low during the third quarter, according to new statistics from ATTOM Data Solutions. During the third quarter, a total of 45,901 single-family homes and condos were flipped, down 12 percent from a year ago to the lowest level since the first quarter of 2015. The flipped properties accounted for five percent of all single-family home and condo sales during the third quarter, down from a 5.2 percent home flipping rate in the previous quarter and down from a 5.1 percent home flipping rate one year earlier. This marked the lowest level recorded since the third quarter of 2016. Homes flipped in third quarter sold for an average of $63,000 more than what the home flipper paid for them, down from an average gross flipping profit of $65,000 a year ago. This marked the lowest level recorded since the continued on page 47

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WHOLESALE / CORRESPONDENT NON-PRIME LENDING Call Citadel Servicing Now! 949-900-6630 sales@citadelservicing.com

citadelservicing.com For mortgage professionals only. This information is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations. Distribution to the general public is prohibited. Rates and programs are subject to change without notice. Citadel Servicing Corporation is an Equal Opportunity Employer and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, veteran status, or other classiﬁcation protected by law.

n National Mortgage Professional Magazine n DECEMBER 2018

entities and • Business trusts included to $3 million • Up loan amounts

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• 5 to 35-unit properties • Mixed-use • Up to 75% LTV

Business Planning for 2019: Baby Boomers to Millennials

ffectively planning the growth of your business requires a solid marketing strategy. Who, what, when, where, why and how … the age-old questions that will “make or break” your marketing plan. Generational marketing will no longer be necessary for mortgage lenders to succeed in 2019. Generational marketing requires that we consider the age of our target audience when developing content. This may seem like a straightforward concept, or one you consider in all your campaigns, but up until now, effectively targeting Baby Boomers and/or Millennials has proven difficult for most, often requiring extra work, time or money. The bottom line is your marketing needs to appeal to your target demographic, and age is a consideration. So, how do you effectively appeal to such a wide range to both Baby Boomers and Millennials? The answer is simple … the cutting-edge technology of today bridges the gap by dynamically changing the content! Using today’s technology, we can dynamically change the content of your marketing messages. Send a thousand different messages to a thousand different people, of different ages, and in different locations, all at the same time. The possibilities are endless. What once may have seemed overwhelming can now be accomplished easily.

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Hot tip: What’s working best this holiday season? Start with direct mail. Yes … direct mail! The response rates have been on the rise. Include it as the core of a multichannel approach so you can pick your own criteria and get the phone ringing with qualified and interested prospects who want to talk with you. Customer spotlight Each month, we like to speak with our clients and find out how their campaigns are going. Here’s what we heard from Keith B., one of our mortgage pros in Maryland on the results of his multi-channel marketing campaign with direct mail at the core, and included telemarketing, e-mail and social media. l Total mail pieces sent: 15,000 l Loans already closed: 19 l Loans still in the pipeline to close: Six Highlights of campaign that work well for you … “Clients call extremely interested with great loan amounts for a high ROI.” Highlights of growth that could appeal to other Loan Officers or offices … “In this market, it is great to have such interested borrowers that qualify based on the data we mail to, calling exclusively to us for a loan. With loan amounts well above average for the area, it makes for a nice return.”

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

new to market

continued from page 15

specialists dedicated solely to its MSR Services Division. MCT’s MSR experts work with clients to define and understand all base assumptions; clients have the ability to easily upload their data and run at their discretion; users are able to create various sets of reports that are easily generated (e.g. cash flow forecasting, accounting, portfolio analysis, etc.); and the results can then be viewed to make intelligent, actionable decisions that mitigate risk. Servicing portfolios are analyzed and valued at more than 30 loans per second in great detail. Plaza Home Mortgage Adds New Disclosure Capabilities to Its LOS

Plaza Home Mortgage has announced that its BREEZE loan origination system (LOS) now gives wholesale Mortgage Brokers a new option in generating both required disclosures and the LE at the point of sale. Plaza Mortgage Brokers will now be able to initiate and send disclosures to a borrower along with the LE through the BREEZE system. The disclosures that will be sent to the borrower include Broker state and federal disclosures and Plaza lender state and federal disclosures, as well as a Fannie Mae 1003 Application. For FHA and VA loans, the 92900A or 26-1802a forms and other required program disclosures will be included. Loan originators will have the option of electronically signing the Fannie Mae 1003 and other forms that require their signatures. Once the disclosures and LE are received by the borrowers, they can consent and sign them electronically, and notifications will automatically be sent via e-mail keeping the originator informed at each step. All documents are then automatically stored in BREEZE’s imaging system where originators can access and save for their record. “At the end of the summer, we introduced our new Loan Estimate capability that lets BREEZE users create LEs in five minutes or less. Now we are adding disclosures to complete the digital experience for brokers and their clients,” said Jeff Leinan, Executive Vice President of National Wholesale Production at Plaza Home Mortgage. “In today’s

competitive market, where every loan counts, technology enhancements and skilled Account Executives allow Plaza clients to offer a superior user experience and increase loan pull-through.” LoanScorecard Launches SimpleCECL

LoanScorecard has launched SimpleCECL, a solution providing loan-level analyses for Current Expected Credit Loss (CECL), provisioning reserves at the time of origination. Issued by the Financial Accounting Standards Board (FASB), CECL is the new “expected loss” accounting model for estimating the Allowance for Loan and Lease Losses (ALLL). It replaces the current “incurred loss” model and goes into effect in 2020 for SEC-filing institutions and 2021 for all other financial institutions. SimpleCECL uses the credit and prepayment model of Andrew Davidson & Company Inc., a provider of risk analytics and consulting, and, through LoanScorecard technology, provides a cost-effective loan loss calculation for all size financial institutions. The user-friendly solution provides loan-level CECL analysis to ensure accuracy and compliance for all loans originated, including those with a policy exception. SimpleCECL forecasts loan performance in various scenarios. The stress testing provides results in three scenario probabilities—a base case, an adverse case, and a severe case. SimpleCECL provides the exact calculation for loan loss reserves under the new regulation. “As soon as a loan closes, before the borrower even makes their first payment, financial institutions must set aside loan loss reserves, but manually calculating that number is challenging, especially for banks and credit unions with limited resources,” said Ben Wu, Executive Director at Loan Scorecard. “Even the most CECLready organizations have yet to solve this impact on the balance sheet. Without provisioning at the time of origination, a bank is out of compliance and reserves are inaccurate. SimpleCECL solves this challenge, providing an continued on page 43

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N A M B

P E R S P E C T I V E

2019 NAMB Focus: Technology Conference & Trade Show The 2019 NAMB Focus: Technology Conference & Trade Show will be held on Wednesday-Saturday, February 6-9 at the Innisbrook Golf & Spa Resort in Tampa, Fla. This year’s show will feature a funfilled Golf Tournament, a Trade Show featuring product showcases on the Exhibit Hall Floor, informative Breakout Sessions, plus much more! Innisbrook, a Salamander Golf & Spa Resort, is nestled on 900 acres of rolling hills and 70 acres of lakes on the west coast of Central Florida. Only 20 miles from Tampa International Airport, the Resort appeals to visitors seeking the ultimate golf resort experience in a locale that is easily accessible and is within minutes of the beaches on the Gulf of Mexico. This year’s NAMB Focus is ALL ABOUT YOU! With focused Breakout Sessions geared towards helping you create a business plan, learn new marketing ideas, discover new technology and more, NAMB wants to help you make 2019 your best year ever! This year’s event will also feature Product Showcase Sessions on the latest software and products to help you and your business, an Exhibit Hall featuring a variety of vendors looking to share information and ideas plus plenty of opportunities to network with fellow mortgage professionals! Featured speakers include ... Carl White, Founder/ Chief Strategist of The Mortgage Marketing Animals and also the host of the top Podcast for Loan Officers in America

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22 Chris Johnstone, famous for his book on Local Google Traffic, specializes in speaking and training business owners, corporations, franchises and non-profits about local, online and social media marketing. Ron Vaimberg works exclusively in his private coaching program with a select number of top sales professionals from some of the nation’s largest real estate franchises, Mortgage Bankers and national banks More speakers and strategy sessions being added, all focused on you and making 2019 great!

The new Certified Veterans Loan Specialist class Plus, NAMB is excited to offer its brand new Certified Veterans Loan Specialist class! Is your focus on VA loans? Would you like to separate yourself from the competition? Don’t miss this opportunity to become approved for NAMB’s newest designation, the Certified Veterans Loan Specialist (CVLS). VA loans are an amazing benefit that veterans have earned, and it’s our responsibility as Loan Originators to help them take advantage of it. But to maximize that benefit, a veterans needs their Loan Officer to know all the nuances. Lender guidelines often cover the top level information and you can do a VA deal from them. However, those guidelines miss the ‘how’ for many of the subtle details of VA loans, and often include limitations that can be worked around if you know how. With this extra information, you’ll be able to get deals done that nobody else can, help more veterans in the process, and stand out to referral partners. In case you’re wondering, it doesn’t matter if you’re in a military town. In a non-military town, it’s likely you’ll be the only VA expert, which will make you stand out even more. The designation training will cover all the basics if you’ve never done a VA deal before, but it’ll also dig into super advanced topics like: l Proving eligibility for everyone including reservists and surviving spouses. l Tips for getting DU & LP approvals, and why manual underwriting isn’t something to be feared. l The truth about VA appraisals and especially “Tidewater.” l Ways to find double the number of VA-approved condos. l New rules around refinances and being ready for when that market returns. l Weird stuff like assumptions, EEM, rehab, non-owner occupant coborrowers, etc. In addition, we’ll emphasize the detailed knowledge and stories that you can use to show your value to real estate agents and help grow your business with VA as your niche. Immediately following the class, a test will be given and, upon passing, you will be presented with your designation and all the marketing materials that you need to promote yourself! 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 details, contact NAMB Executive Director Valerie Saunders at (202) 434-8250, e-mail ValSaun@NAMB.org or visit NAMB.org.

Save the Date ...

NAMB National returns to Vegas in 2019

Saturday-Tuesday, May 4-7, 2019

Saturday-Monday, September 14-16, 2019

NAMB 2019 Legislative & Regulatory Conference

2019 NAMB National Conference & Trade Show

Liaison Capitol Hill Hotel • 415 New Jersey Avenue NW Washington, D.C. Thank you to all who attended the 2018 NAMB Legislative & Regulatory Conference in Washington, D.C. Details will be made available in the coming months on NAMB.org.

Caesar's Palace • Las Vegas Join NAMB at the nation’s most-attended mortgage-focused event by the country’s top mortgage professionals! Details will be made available in the coming months. For more information, contact NAMB Executive Director Valerie Saunders at (202) 434-8250, e-mail ValSaun@NAMB.org or visit NAMB.org.

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, I can’t believe we’ve reached the end of 2018, what a year it’s been for NAMB+ and NAMB! I hope you had a tremendous year in business yourself and I hope that in addition to enjoying the holidays with family and friends you’re gearing-up for another great year in 2019. For those of you looking to get a jump on your competition in 2019, NAMB+ has more resources available than ever before to help you succeed. Just this month at NAMB National we rolled-out our exclusive NAMB+ CRM powered by Pulse, which is specifically designed for mortgage professionals. Connect with your prospects and customers seamlessly in a single, webbased solution that can help you save hundreds of hours per year and grow your business. The NAMB+ CRM powered by Pulse lets you add leads directly

into your Loan Origination System with customizable intake forms and loan officer landing pages, automates your email marketing and even sends loan status alerts to your borrowers, real estate agents and internal staff. NAMB+ is looking forward to an absolutely huge year in 2019 with the introduction of even more strategic partners and Endorsed Providers to help you succeed and further increase the value of your NAMB Membership. Sincerely,

Mike DeSantis President, NAMB+, Inc. 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.

MassMutual Disability Income Through an arrangement with Massachusetts Mutual Life Insurance Company (MassMutual), NAMB

Moso provides Brokers and LOs with customized websites, online application generation, rate alerts, borrower portal, CRM and Cloudbased Document Management at an affordable price of $50 per month, plus $15 per funded loan. A 3 month free trial along with the first 5 free funded loans is extended to NAMB+ members. 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. 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.

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. If you want a social and 23 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.

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CIC Credit - Tri-merge Credit, Employment Screening, & Much More. Businesses have looked to CIC Credit for expertise on Business Screening, Credit Reports, Mortgage Credit Reports, and Employment Screening for decades. With over 100 years of credit related experience, it's no surprise that CIC Credit is a leader in providing quality products to help clients qualify borrowers, mitigate risk, and ensure compliance.

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.

NAMB Members will receive a Twenty-Five Percent (25%) discount off of the regular price with their NAMB Membership.

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For over fifteen years, Camber Marketing Group has been the premier lead generation, data solutions and direct mail marketing company for the mortgage and financial services industry. From this perspective our goal is to help NAMB members generate profitable response and maximize their return on investment.

members have an opportunity to apply for individual disability income insurance (DI) at discounted rates.

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.

Universal Credit Services is a Top Ranked, National Credit Reporting Agency and Authorized Report Supplier for Fannie Mae Day 1 Certainty® offering products and services from origination to closing. Universal provides Tri-Merged Credit Reports, Verification of Employment Reports, VOD's, 4506T's, Marketing Services, Flood, Fraud, and Appraisal Management Services.

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!

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vendor

partner

Vendor or Partner:

Always Know the Difference By Michael O’Connell

Four reasons some companies settle for an outsourcer The primary reason that companies settle for an outsourcing relationship when they would really prefer a partnership is a limited budget. Some firms opt for a relationship with a traditional outsourcer because they feel that a true partnership would be too expensive. There are certainly vendors that are not worth their price, but a good partner can still be very affordable, especially when the return on that investment is considered. If management wishes to maintain very strict cost control, outsourcers are often selected over partners. The assumption is that since these outside vendors will only do what is asked, the chances of increased expenses are reduced. In truth, the outsourcer’s inability to help the company locate and correct

problems often ends up costing more in the long run. Businesses that simply wish to maintain or manage current requirements often opt for an outsourcer over a partner because they believe that the outsourcer will be less likely to suggest changes that could require time and investment to implement. In this, the firms are generally correct. However, failure to identify problems that hinder growth will eventually erode a company’s ability to compete effectively. In addition, requirements change so often that it makes more sense to partner with a firm that can assist with monitoring and reacting appropriately to these changes when they occur. Finally, companies that are satisfied with their current level of technology are more likely to rely on outsourcers than partners as those firms are generally eager to adopt whatever tools the lender or servicer is currently using, even if they are outdated. A true partner will likely offer advanced technology and that may require the company to invest in order to keep pace. Of course, failure to do so will put the company at a disadvantage in the market. After analysis, the reasons companies opt to work with simple outsourcers rather than seeking out true partners start to sound more like excuses. Five reasons why you actually need a partner Whenever a company goes to market for a service provider to

help them meet unique objectives, it will be necessary to look beyond traditional outsourcers and seek out an actual partner. If the services required go beyond the standardissue provided by simple outsourcers—e.g. the company seeks an advantage that their competitors cannot readily acquire or a customized delivery of services—the company would be better served by a real partner. Another reason companies seek out partners is that they are looking to build individualized processes to simulate an extension of their own team’s efforts. Companies that hope to create a long term relationship with a firm that has the ability to create a process that allows the partner to function as an appendage of their own business and that can sync with their internal team, system, style and creativity will always seek out a partner. When companies need to work with subject matter experts, they generally choose a partner over an outsourcer. When management is seeking input from other professionals for brainstorming new processes or systems or to collaborate on innovation, it’s best to seek out a partner. Simple outsourcers cannot be expected to do more than the required tasks; creativity, collaboration and individualized problem-solving are usually not included. continued on page 53

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The need for external partners No lender or servicer can do everything on their own. Whether they are looking for support with front line customer service, document processing, research services or portfolio analysis, financial services companies will need to work with others along the way. And with consumer expectations, government regulations and technological capabilities changing faster than ever, there is a high probability of issues arising that the firm will not be equipped to manage alone.

Consequently, lenders and servicers go to market often to find companies to support them. With the industry more complex than ever, the specialized expertise available from outside firms is more valuable than ever. But the question remains: What kind of outside firm is the company actually seeking? If the company is seeking a simple outsourcer, a full-fledged partnership may not be required. But when the lender or services goes in search of a real partner, choosing instead a simple outsourcer could lead to disaster.

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enders and servicers are often approached by service providers eager to offer them assistance. With so many firms willing to take on overflow work from financial services firms, choosing between the options can be difficult. While there are many ways to choose the perfect vendor for your business, there is one important distinction that should be kept in mind: There is a big difference between an outsourcer and a partner. There are times when the job requires nothing more than an external team to complete the work. In these cases, outsourcing may be the need of the hour. But there are many other times when only a true partner can get the business done right. It is crucial to determine which of these service provider types you actually need before choosing a company to work with.

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The One Reality None of Us Likes to Hear But once mastered, will immediately change your production and income By Brian Sacks

The cold hard truth is what we never want to face! This cold hard truth is that you will only succeed to the level of your own self-image. Please stop right now. Write that down on a piece of paper and put it where you can see it. This one reality has totally changed my own life and production, and it is also the foundation of a book called Psycho-Cybernetics by Dr. Maxwell Maltz.

The truth is your selfimage is the issue not the strategy If you see yourself as a $1 million producer, that is your self-image. When you exceed your self-image, you will subconsciously work very hard to get back to a level that is consistent with your current self-image. This is exactly why you see some Loan Originators experiencing short-term

success and then immediately crashing and burning. The fix for your self-image Before you can take your production to the next level, you must first really stop and think about what your self -image is. Let’s say you are in fact a solid $1 million a month producer and you want to take your business to $2 million consistently. You must dig deep and ask yourself the following questions: l What does a $2 million producer do to produce business? l What would it feel like to be a $2 million producer, both income-wise and prestigewise? l How does a $2 million producer speak and what do they wear? Sound hokey? Probably! It sounded that way to me too at first. But if you can truly imagine in your mind what producing $2 million a month feels like. Imagine yourself as a $2 million a month producer and convince your subconscious that it is your reality than you will accomplish it. How do I know? Many of you know who I am, but I

bet you don’t know much about me personally, so here goes … I barely graduated high school and was certainly not a great student. I came from what would now be considered a lowermiddle-class home with my parents just struggling to stay middle class. I had no special advantages or skills. Yet, I saw myself as a millionaire. I convinced myself and sold my subconscious mind on the fact that I was a successful Originator, earning millions of dollars. Don’t misunderstand. This is not think good things and good things will happen! Thinking is important, but you must also go out and implement strategies that work. Instead, what this means, is that even if you have strategies that work and the skill set to succeed, if your subconscious self-image is not in sync, then you will either not succeed at all or only have temporary success. Think about this important fact now as you make up your goals and strategies. It’s exactly what I share with my own Top Originator Mastermind members and now you know this important secret too!

Brian Sacks is a national mortgage expert with Homebridge Financial Services Inc., located in Owings Mills, Md. He has compiled more than 30 years of mortgage experience and career closings of 8,000 loans in excess of $1 billion. He is a recognized leader in the mortgage industry, and is the resident expert for NBC Channel 11 and has also appeared on the local CBS and ABC stations. Brian has appeared nationally in more than 42 states. Brian is considered the national expert on working with credit-challenged buyers. He is also a respected coach, and speaker and the founder of the Top Originator Mastermind. You can watch his four-part, free video series on “How to Close More Loans: Make More Money and Still Enjoy Life” at http://TopOriginatorMastermind.com/NMP.

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You will only succeed to level of your self-image As a manager and trainer, I have seen numerous Loan Originators explode their production with the tactics and systems I teach, and then, for no apparent reason, they crash and burn. I am sure you have too, but have you ever stopped and really wondered why that happens, especially when there doesn’t seem to be any apparent logical reason? It’s all about your self-image. Let’s say that you feel very comfortable knowing that you can produce $1 million a month. Some months are better and some months are worse. But then you find a great strategy. You implement it and it works beyond your hopes. You now start producing $2 million the next month and $3 million the month after. Pretty good huh? But then month four comes around and you originate $750,000. You think you are doing all the right things and you wonder what happened. This has been working so well, why did it suddenly and for no apparent reason stop?

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efore you start reading this article, I want you to really clear your mind of all distractions. Deal? What I am about to share with you is what I have shared with many of the top originators in the United States, many of whom are now experts and trainers you may know. While every Loan Originator is always trying to grow their production and every manager is trying to motivate their staff, we don’t always seem to succeed. If you have ever wondered why that is, then pay very close attention. We all seem to be focused on the “What to Do” and the “How to Do It,” constantly looking for new and creative ways to generate new relationships and close more loans. In fact, at this time of year, we are all very focused on setting up our goals for the coming year: l How many loans will I close next year? l What marketing methods will I use? l What new relationships can I establish and how? l What new widget or shiny object will be my new focus and solve everything?

Adaptin No Bet BY RALPH LOVUOLO SR. esterday, I was reading an article on the Web about when we should “start” something. It reminded me of an article written by my first boss, Tony Schweiger, when we worked together at South Jersey Mortgage Company back in the mid-1960’s. I think he wrote the article about 1967 and the title of the article was “The Time to Buy is NOW!” I wonder, every once in a while, if he remembers writing that article, because I think of it often. That article came to my mind on two separate occasions that particular day. The first was during a group conversation where I was discussing the importance of technology in our business, the age of the average Mortgage Loan Originator and when we should start to use the incredible array of technology that is available. We have CRM’s, POS’s, LOS’s and more, much more. Back in the 1980s, I recall that the agent that had listed the house I was living in was regularly sending postcards to my house reminding me that she was still in the real estate business while offering recipes for various foods to my wife. It was well-known at the time that recipes were the most popular way for people who sold real estate to remind their customers that they were still around. I also knew a salesperson who worked at Ethan Allen Furniture on Long Island that was required to write a postcard to every person she saw every day, thanking them for coming in to the store and that if they needed help, not to forget her name or phone number. She was not to wait to write, but to do so immediately, every day. In a short period of time, she became the top salesperson in that store. Most of her co-workers were not as disciplined, and it showed in the results of their sales. The first time I encouraged my salespeople to use what I had discovered about the Internet was about 1995. I’m not sure of the date of course because it took me some time to learn what the

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The

Mortgage

Godfather

ting to Technology? etter Time Than Now! whole Internet, including the World Wide Web, was all about. My first reaction was that if I touched the computer in the wrong way, it would explode and maim me. But the important thing I do remember was that somehow, we could send messages to each other through wires from one computer to another. I really thought that was pretty amazing. And then I thought about how my salespeople could stay in touch with anyone they did business with. Further than that, I saw that we had an opportunity to both do it ourselves, but also to help Real Estate Agents do more business by staying in touch with their past customers in a different way than just by using the USPS. My mind was always concentrated on improving my business and it was part of my responsibility to help my Loan Officers. Marketing was always on my mind. Additionally, I was always seeking ideas that would not be too expensive. Further, I felt a strong obligation to think differently than other Mortgage Brokers and also to be more helpful to our Realtors. I first had my son teach me how to set up an address book and learn how to be able to send mass mailings to my past customers. The most e-mails I could send was to a group of 25, but that was fine with me. It was better than I had done before. Then I had someone come to our office and teach my salespeople how to do what I had learned and start to use it themselves to stay in touch with their past customers, family and friends. Of course, most of them thought I was out of my mind, but I persisted. Most of the reason they thought I was nuts was because I wanted them to do it all the time. I thought we should be sending information about the financial markets and programs we had on a regular basis, at least once a month. Of course, because I was also producing business on my own, I didn’t follow up as diligently as I should have, but there were some people who did get some results and we discussed it often at our weekly sales meetings. There was some point that I

discovered that if I combined all of this information that was swirling in my head, it would be to the advantage of my Realtors to do the same thing we were doing. NOW, my sales staff really thought I was nuts. What I wanted them to do was talk to their Realtors and ask them if they knew how to set up an address book, etc., etc. Of course, the answer, almost all the time was “No.” I suggested that they show their referral sources what they were doing. The ones who had begun to do what I had encouraged were doing more business and then everyone started to at least make some attempt on their own. This was the start of the concept that I use today of bringing value to referral sources. It is my first action in my Golden Circle, modeled after Simon Sinek as he has written about in his best-seller Start With Why. Trust me, with this, we were the first Mortgage Brokers in the country to begin the idea of bringing value to Realtors by teaching them to do something that would help them grow their business. In fact, even today, most of you are still selling rates, points, programs, service and denigrating the competition. I’ve expanded the concept of helping referral sources, to a list of 80 ideas, all you have to do is ask, and I’ll send it to you. The other and much more important subject that caused me to think of Tony’s article was concerning the use, or better said, non-use, of the overwhelming, incredible advances that are occurring every day in our world that has been so slow in embracing the wonderful changes, all for the better, of technology that will allow every one of you to do more business than you’ve ever dreamed of. I spent some time recently discussing a POS that has some amazingly advanced and interesting abilities. I’d love to discuss them with you, but I need to hear from you in order to give you the information you need to become more productive. If you wait, you’ll find yourself and your company getting further and

further behind those who act NOW! Feel free to reach out to me at Ralph@MortgageGodfather.com or call me at (917) 576-1230. Just think if I could tell you that after you meet with a proposed client, you’ve established trust, they know you know what you’re doing, they’ve heard from their Realtor that you’re the best MLO since ME, that you could direct those people to a place on the Web that will allow them to do wondrous things? Would you like that? Wouldn’t that allow you to go to find your next client, devise

a new way to bring value your Realtors that would help them do more business? What are you waiting for? Just talk to your boss, ask them if they have any plans to bring you original ways to originate loans that will put you far ahead of your so-called competition. I spoke to an MLO the other day who told me that his company has almost no technology. Believe me, the less you have the more likely you are to fail. Go ahead, continue to sell rates, programs and service. The time to act is NOW!

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. The Mortgage Godfather is available to help your salespeople do more business. He does sales rallies, Webinars, personal coaching. Call, text or e-mail (917) 5761230 or e-mail Ralph@MortgageGodfather.com.

heard street on the

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.

UWM Records 52 Percent YOY Increase in Loan Volume

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United Wholesale Mortgage (UWM) has recorded a 52 percent year-over-year increase in loan volume, according to third quarter numbers published by Inside Mortgage Finance. Overall, Independent Mortgage Brokers have seen their business go up by 19 percent in the last nine months, while retail originations decreased by six percent. “This is more of a Mortgage Broker story than a UWM story,” said Mat Ishbia, President and Chief Executive Officer of UWM. “UWM is growing loan production so quickly, and we’re hiring over 600 people a year, even while so many companies are slowing down and laying people off, because Mortgage Brokers are growing so fast. Realtors and consumers recognize that Mortgage Brokers are the best place to get a loan, and Loan Officers understand that a Mortgage Broker is the best place to work. UWM is growing on the back of Mortgage Brokers and we are proud to be part of this change.” In the third quarter, UWM was the fourth-largest overall mortgage company, and once again,. the number two purchase lender in America among all retail and wholesale lenders, trailing only Wells Fargo. As interest rates continue to rise, UWM expects its purchase business, which is more than 75 percent of its loan volume, to continue. “Our business has flourished because we have fantastic

people and we constantly deliver amazing turn times and customized technology and marketing to our clients,” Ishbia said. “We’ll continue to hire great people so we can keep providing great service to brokers.” UWM forecasts that its yearend loan volume to be around $41 billion, which would exceed the company’s all-time high mark of $29.5 billion (set in 2017) by nearly 40 percent. QRL to Leverage DocMagic to Purchase eNotes From Correspondents

DocMagic has announced that QRL Financial Services, a provider of residential mortgage lending services for community banks and credit unions, has leveraged its eVault technology to purchase eNotes. Implementing an eVault means QRL can increase new business by extending its reach to lenders that are ready to implement eClosings and sell eNotes. “QRL is a far-sighted organization, and by implementing eVault technology now, they stand to capitalize on marketplace opportunities as eNotes continue to gain adoption,” said Dominic Iannitti, President and CEO of DocMagic. “We tend to partner with early adopters like QRL, who will reap the benefits of their industry insight. We look forward to the success they realize by utilizing our eVault and supporting technology.” Because QRL is using DocMagic’s SmartDocs, all documents retain a tamper evident seal to ensure data and document integrity. Using static

documents, that don’t include SmartDoc transactional (XML) metadata, means some organizations have the difficult, costly and time-consuming task of confirming that data and documents are in sync. NAMB Launches Subsidiary to Handle Member Relations

NAMB has created NAMB Association Services, a subsidiary designed to improve the relationship between the organization and its members. In a statement issued by NAMB, the organization said the new subsidiary would work with constituents “to minimize their organizational costs, leverage long-term industry relationships, and directly put the needs of association leaders and members first by providing NAMB’s Independent Affiliate Associations with a costeffective, reliable and industryfocused alternative to selfmanagement. It offers support for in the areas of membership, management, conferences, trade show and event support, and much more.” NAMB Association Services represents more than 7,500 members and its current client base includes three state-level groups—California Association of Mortgage Professionals, Florida Association of Mortgage Professionals and Oregon Mortgage Association—along with NAMB and NAMB Plus. “We are very encouraged by the initial groups represented by NAMB Association Services,” said NAMB Association Services

President Olga Kucerak, CRMS. “Because of the unmatched services we provide to the industry, I believe by 2020, our organization is well-equipped to nearly triple the number of members and organizations we serve and look forward to this expansion to provide the best industry-wide services and support for independent affiliate associations.” HUD Recognizes Homebridge as Top 203(k) Lender

According to the U.S. Department of Housing & Urban Development (HUD), Homebridge Financial Services continues to lead the country in renovation mortgages as per HUD’s yearend 203(k) Endorsement Summary. HUD’s most recent report marks the second year in a row that Homebridge, which began offering these loans in 2011, has led the nation in FHA renovation mortgages. In its report, HUD stated that Homebridge’s retail platform and two wholesale divisions, Homebridge Wholesale and REMN Wholesale, combined for 954 endorsements 87 percent more than the second highest lender on HUD’s report, and 219 percent more than five of the top 10 lenders who originated 203(k) loans during HUD’s most recent fiscal year. “One of the biggest issues in housing right now is the lack of available homes that are desirable in terms of both location and design. When a borrower can’t find a home that meets both of these needs, they tend to postpone their purchase,

sometimes indefinitely,” said Steven Marshall, Homebridge’s National Director of Renovation Lending. “Homebridge’s success with renovation mortgages is in direct correlation to borrower interest, the referrals we receive from real estate professionals who are having a tough time finding buyers for less than perfect homes in their local areas, as well as the extra effort our associates put towards helping borrowers close these loans.”

TMS Partners With Ellie Mae to Bring Encompass Investor Connect to Mortgage Lenders TMS has announced a new partnership with Ellie Mae to help bring Encompass Investor Connect to market, as the two companies work together to drive efficiencies in correspondent lending through automation and faster turn times. TMS will be able to provide a state-of-the art digital process to its correspondent lenders, offering

them a revolutionary way to sell their loans that ends the outdated and burdensome traditional process. The integration of Encompass Investor Connect with TMS’s propriety system KISS streamlines the process of delivering data and documents, allowing users to simply click one button and TMS will accept the loan data and documents directly into its system. The direct system to system integration allows TMS to seamlessly accept loan data and documents, eliminating the need for the lender to download the loan file, save it and upload it into the

system. The move will also reduce risks and enhance data security due to its document recognition and data-extraction technologies. Total Expert Raises $20 Million in Series B Funding

Total Expert has announced that it has raised $20 million in Series B funding. The round was led by Emergence Capital with participation from Rally Ventures and Arthur Ventures, bringing continued on page 52

AFR Wholesale Joins Up With Floify

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AFR Wholesale, a division of American Financial Resources Inc. (AFR), has announced a partnership with Floify, to offer Floify’s automation technology to AFR’s independent network of broker partners. By utilizing Floify’s point-ofsale integration, AFR’s broker partners will be able to quickly and easily process borrower loan applications, securely send and receive supporting documentation, automatically deploy status updates and reminders via e-mail and SMS, and more–all from a single, intuitive user interface. “Partnering with AFR Wholesale on a Floify integration underscores our relentless pursuit of helping maximize broker productivity and borrower satisfaction with the mortgage process,” said Dave Sims, Chief Executive Officer of Floify. “Our partnership with AFR not only shows the benefits of a streamlined loan origination process, but highlights the incredible potential of an alldigital mortgage operation.” Bill Packer, Chief Operations Officer at AFR, said, “Since the inception of our Wholesale Division over 10 years ago, AFR has continually sought innovative ways to support and enhance our partnership with the broker community. We are dedicated to industry-leading technology, personal expertise and education, and a worldclass customer experience to our partners. Our commitment to evolving our service offerings by teaming up with leading mortgage-tech providers, like Floify, will only enhance the success AFR’s brokers will achieve.”

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

n our ninth 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. In assembling this list, we at National Mortgage Professional Magazine took some heat when we began this endeavor nine long years ago. Many felt a list of this magnitude ignored many, 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 2018 and beyond. We’d like to congratulate all of the following individuals named to our “40 Under 40” list for 2018—in no particular order but alphabetical—and thank all of the nominees for their participation in our “40 Under 40: The 40 Most Influential Mortgage Professionals Under 40” feature.

Brooke Anderson

Dana Boehm

President Vantage Mortgage Group Inc. Lake Oswego, Ore. VantageMortgageGroup.com Andy W. Harris, President of Vantage Mortgage Group Inc. in Lake Oswego, Ore., is best known for his educational and unfiltered articles and videos around independent mortgage origination. He boldly predicted the future of the primary mortgage market after the 2008 housing crisis and fought the majority in support of wholesale lending and lender competition. He credits his successful career to these predictions which have made Vantage Mortgage Group one of the most successful brokerages in the country.

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Chief Operating Officer and General Counsel American Financial Network Inc. Brea, Calif. AFNCorp.com Jonathan Gwin Esq. joined American Financial Network Inc. (AFN) in 2010. In his current role as Chief Operating Officer and General Counsel, he is instrumental in offering operational, as well as legal, support to AFN and is a crucial member of the company’s executive team. Jon started much of the technology processes in place at AFN today. On the legal side, Jon started LitigationManagers.com to assist the industry with specialized, legal assistance across all 50 states. Jon also actively worked with New Story Charity to help build one of the first homes to assist the charity in its original growth.

Sales Manager Academy Mortgage Corporation Walla Walla, Wash. AcademyMortgage.com/LO/TeraDavis Tera Davis has been a Loan Officer for the past 16 years, the last seven with Academy Mortgage in Walla Walla, Wash. With $33 million in closed volume in 2017, Tera is a member of Academy’s President’s Club for the company’s highest producers. As Sales Manager, Tera oversees two teams and believes everyone plays a big part in the mortgage transaction. She offers her extensive market knowledge and tips of the trade without reservation by answering questions, mentoring new recruits, and leading by example. Tera currently serves as PresidentElect for the local Exchange Club, where she has also volunteered as a Child Abuse Prevention Specialist.

Jonathan Gwin Esq.

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Owner, Mortgage Broker LA Lending, LLC Baton Rouge, La. LALending.net Chasity Graff opened her mortgage company in 2007 while only 26-years-old and has persevered through the housing crisis, as well as a flood in 2016 that devastated her surrounding area in Louisiana. Chasity has always believed in the broker model in relation to origination and is currently enjoying participating in the new Association of Independent Mortgage Experts (AIME) movement, serving with the Women’s AIME Affinity Group and also acts as an administrator of a high level mortgage society comprised of Loan Originators across the country.

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Market Leader/Certified Mortgage Planner Movement Mortgage LLC Roseville, Calif. Movement.com Keith Collins, Market Leader and Certified Mortgage Planner (CMP) for Roseville, Calif.based Movement Mortgage LLC is an industry leader in the mortgage space. He is a top producer, attracts top talent and is always embracing change and systems. CMP’s are trained to help their clients achieve their financial goals and implement mortgage and real estate strategies that save money on income, capital gains and estate taxes.

Chasity Graff

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Keith Collins

Senior Vice President of Correspondent Sales, Western Division The Money Source Agoura Hills, Calif. TheMoneySource.com Tom Gillis, CMB, leads the TMS Western Correspondent Sales Team as Senior Vice President of Sales, tapping into his diverse knowledge of the industry to fuel the company’s fast growth. Starting in the industry 15 years ago, Tom has consistently been a top correspondent performer, with a proven track record of growing and managing accounts. His experience includes holding leadership positions at some of the largest mortgage companies, including U.S. Bank Home Mortgage and Bank of America Home Loans. Most recently, he was Vice President, Regional Manager at PennyMac.

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Northeast Operations Manager Homebridge Financial Services Hackensack, N.J. HomeBridge.com Dana Boehm is the Divisional Operations Manager for Homebridge Financial Services. She has been in the mortgage business for more than 17 years and has extensive experience in a variety of operational roles. Dana oversees the largest operational staff in the company, supporting 133 Mortgage Loan Originators in the Northeast. Her management of the divisional operational staff is integral in ensuring a smooth loan process for clients to help them achieve the dream of homeownership.

Tom Gillis, CMB

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Regional Director of Business Development Academy Mortgage Corporation Moorestown, N.J. AcademyMortgage.com Brooke Anderson is Regional Director of Business Development at Academy Mortgage Corporation, responsible for generating new business production and operational growth. Since joining Academy in 2017, Brooke has hired numerous sales employees across the company to Academy. These new hires are on track to produce more than $300 million in new business, trending to more than a half a billion in new production for 2019 and growing. What sets Brooke apart from any recruiter in this industry is that she works from the heart, she does what’s best for the person she works with and the company she represents. During Brooke’s short time in mortgage recruiting,

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Rami Jamil Executive Vice President Atlantis Mortgage Farmington Hills, Mich. AtlantisMortgage.com/Employees/Rami-Jamil In six years of living, breathing and growing in this industry, Rami Jamil, Executive Vice President of Farmington Hills, Mich.-based Atlantis Mortgage has been fortunate to be able to close more than 5,000 loans. Rami started at the age of 21 with Quicken Loans and grew organically within the company from Senior, Executive, President’s Club and Director with the highest quantity ratio. For three of his six years, he ran the highest producing sales team, called the “Ambition” (half-billion purchase closings per year). He returned to writing loans in January of 2017 and produced $80 million in purchase closings (348 units). Rami hung his hat mid-year to focus on becoming more dialed in with his family and to have more entrepreneurial opportunities.

Jordan Johnson Vice President of Production and Development M&M Mortgage Roseville, Minn. TheMMMortgage.com/Staff/Name/JordanJohnson Jordan Johnson, Vice President of Production and Development, has been integral in training and onboarding employees at M&M Mortgage for more than years and growing the firm. Jordan worked as a Processing Manager with Military Family Home Loans for 10 months while M&M Mortgage built out operations in the Twin Cities, until Wells Fargo closed the joint venture. He was a Work Director with Edward Jones Mortgage, where he managed 27 processors. Jordan has trained with and developed 100-plus mortgage professionals in the Twin Cities, having originated more than $30 million in volume personally, and having closed more than 160 loans as a Processor.

Jake Krabbe Regional Sales Leader Academy Mortgage Corporation Scottsdale, Ariz. AcademyMortgage.com/LO/JakeKrabbe Jake Krabbe has moved up the ranks at Academy Mortgage, from being the company’s Rookie of the Year Loan Officer in 2012, to Sales Manager and Branch Manager. Jake is currently a Regional Sales Leader, responsible for overseeing the growth in production, the opening of new branch locations, and the recruiting and coaching of Loan Officers and other team members in Arizona. Jake participated in Academy Mortgage’s Leadership Academy, an internal MBAstyle program. He is also a member of the President’s Club, comprised of the company’s highest producers. Jake is a member of the Arizona Mortgage Lenders Association and was President of his local Toastmasters International Club. He is also actively involved with Big Brothers Big Sisters of Arizona as a mentor.

Alex Kutsishin Founder, Chief Executive Officer and Chief Return-on-Investment Booster Sales Boomerang Owings Mills, Md. SalesBoomerang.com Alex Kutsishin is Founder, Chief Executive Officer and Chief Return-on-Investment Booster for Sales Boomerang in Owings Mills, Md. He is an innovator and entrepreneur, with expertise in marketing, digital communication and technology. In 2011, Alex launched the nation’s first code-free mobile development software which he sold at the end of 2014. He then consulted for one mortgage industry’s top marketing companies, which is where he got the idea for Sales Boomerang. In just 14 months, they have discovered more than $6.28 billion in missed loan volume for more than 40 of the top lenders in the industry.

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Kyle Kamrooz Co-Founder Cloudvirga Irvine, Calif. CloudVirga.com Kyle Kamrooz, Co-Founder of Cloudvirga, has 20 years of executive experience in residential mortgage lending. By the age of 25, he had built one of the largest direct-to-consumer mortgage lending companies in Orange County. His next venture, a nationwide mortgage company, processed more than $7 billion in loans annually and employed more than 500. While serving as Executive Vice President at Skyline Home Loans, Kyle developed the technology that would become Cloudvirga. Kyle serves on Fannie Mae’s Technology Advisory Board and has served on the MBA’s Loan Production, Legal and Regulatory Compliance and State Legislative & Regulatory Committees.

Elizabeth Karwowski Chief Executive Officer Get Credit Healthy Sunrise, Fla. GetCreditHealthy.com Elizabeth Karwowski is Chief Executive Officer of BEMG, t/b/k as MBO Holdings Corporation. BEMG, through its operating subsidiary, Get Credit Healthy, utilizes its proprietary processes, platform, and software which seamlessly integrates with the lenders’ loan origination software (LOS) and customer relationship management software (CRM) in order to create new loan opportunities and recapture leads. Get Credit Healthy is passionate about providing consumers with the tools and resources they need to eliminate debt, build credit and make sound financial decisions.

Lisa Lund President Lund Mortgage Team Inc. Glendale, Ariz. LundMortgage.com Lisa Lund, President of the Lund Mortgage Team, started out as a Junior Processor in 1997, working for her father’s brokerage company. She opened Lund Mortgage Team in June 2009 at 28-years-old. Lisa currently runs a broker shop with eight employees and closes more than 60 loans a month on average. Lisa is very involved in the community and is currently a member of NAMB, AZAMP and AIME. She is also a member of AIME Women’s Affinity Group. Lisa has lobbied in D.C. for Mortgage Broker laws, chaired Arizona state trade shows, scheduled speakers for Monthly Luncheons and organized continuing education for licensed Loan Officers and Mortgage Brokers.

Wes Marsh Mortgage Consultant M&M Mortgage LLC Roseville, Minn. TheMMMortgage.com/Staff/Name/Wesley-Marsh Wesley Marsh, Mortgage Consultant with M&M Mortgage LLC in Roseville, Minn. is known as the “Mortgage Marsh.” Since he was young, Wesley has always had a passion for the outdoors. His love for the outdoors allowed him to create incredible memories with his family and friends growing up. Along the way, he developed personal values that he brings to his business. His positive mindset and self-motivation has set him apart from others in the industry. He cherishes the genuine connections he builds with his clients in the mortgage process. Wesley also loves making an impact on his community by giving back. This year his goal is to donate $10,000 to charity.

Noelle Melton

Meggan Midbo

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Vice President Lenders One St. Louis, Mo. LendersOne.com Matthew Orlando joined Lenders One in 2017. Understanding that the company has been expanding, Matt has been instrumental in bringing top talent to the organization, enabling aggressive growth and implementing a new due diligence vetting processes for the cooperative. In August 2018, Matt was promoted to lead the member acquisition and relationship team, in addition to overseeing the platform of Lenders One’s preferred vendor network. Prior to Lenders One, Matthew spent a decade at Equifax in various roles, including legal, new product innovation, growth strategy and leadership.

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Corporate Product Owner United Wholesale Mortgage Pontiac, Mich. UWM.com Meggan Midbo leads strategic initiatives for United Wholesale Mortgage (UWM). Meggan’s project management skills, make her the central point of contact, both internally and externally, on initiatives that drive sales production, improve process efficiency, and keeps the company in compliance. Meggan has been a catalyst behind UWM’s mission to reduce the amount of time it takes to close loans, having led the launch of UWM’s UClose 2.0. A 13-year veteran of the industry, Meggan has worked in mortgage technology with a focus on wholesale and correspondent lending since 2005. In 2008, she led the project for the first e-Signed mortgage for Freddie Mac.

Director of Strategic Growth MortgageRight Atlanta BranchRight.com Alvaro Moreira, Director of Strategic Growth for MortgageRight in Atlanta, is a mortgage marketing professional and business growth expert. He enjoys helping Branch Managers and Loan Originators reach their true potential by challenging them to think and work differently, and by helping them grow their businesses with marketing, recruiting and increased efficiency. As the Director of Strategic Growth of MortgageRight, Alvaro has recruited and coached many successful mortgage producers who have significantly grown their income. NATIONAL

Director of Affordable Housing Initiatives Fannie Mae Washington, D.C. FannieMae.com Noelle Melton leads her team to develop and execute products and policy enhancements to ensure Fannie Mae meets its annual SF Affordable Housing Goals. Noelle previously served as Director of Government and Industry Relations at Fannie Mae. In the 10 years prior to Fannie Mae, she served as a financial services policy advisor to a senior member on Capitol Hill. Her passion for affordable housing extends to her volunteer work: Noelle has spent 15 years as a Sous Chef at Miriam’s Kitchen, a local D.C. non-profit which fights homelessness by providing quality meals, comprehensive support services, and care for their guests.

Alvaro Moreira

Ben Miller President, Chief Operating Officer SimpleNexus Lehi, Utah SimpleNexus.com Ben Miller is President and Chief Operating Officer at SimpleNexus. Ben joined SimpleNexus in 2014 as one of its original employees. Today, as COO, Ben runs the operations side of the house, which ranges from setting up strategic partnerships to managing implementations, to developing employee benefits programs. His mission is keeping the company efficient as it scales, expanding partnerships and bringing the right mix of people onboard. Just seeing the impact that SimpleNexus is making on the industry is his motivator to constantly do more.

Ian Miller Chief Marketing Officer Mortgage Capital Trading Inc. (MCT) San Diego MCT-Trading.com Ian Miller is an accomplished marketing executive who enjoys deconstructing complex value propositions to present them in a compelling and relatable format. He finds fulfillment, whether writing photo captions or mission statements, rolling up his sleeves for a development sprint, or managing the operations of a diverse team towards long-term objectives. After cutting his teeth as a freelance marketing agent, Ian’s consultancy merged and blossomed into a successful agency in Riverine Inc., where he served more than 50 clients in a wide range of industries and capacities.

Mark Pfeiffer Branch Manager, Mortgage Loan Originator Homebridge Financial Services Dallas, Texas MortgageMark.com Mark Pfeiffer began originating loans in 2004 and is currently the producing Branch Manager of the Dallas Central branch for Homebridge Financial Services. Mark’s annual production for the past few years has been north of $55 million and around 180 to 200 units. His industry achievements include D Magazine’s Best Mortgage Lenders, Texas Monthly’s Five Star Professional and Homebridge’s Circle of Excellence. Mark served on the Dallas Builders Association’s “Big Board” and earned theirs designations of CGA, CGP, and CAPS. He is a USA Cares Certified Military Housing Specialist and also graduated from the Certified Mortgage Planning Specialist program.

Rocio Portella Loan Officer Annie Mac Home Mortgage Miami MortgageChicks.com Rocio Portella was given an opportunity at the age of 18 to start in the mortgage industry because of her drive to succeed and desire to help people. She started as a receptionist and worked her way up to a Senior Loan Processor. It was in 2005 when she decided to get her license as a Loan Officer and work 100 percent on commission by serving the Latin community. In 2017, Rocio funded more than $38 million in mortgage loans and has helped 165 families in 2017. She is currently ranked as the number one Latina in Florida from a non-depository lender, according to the NAHREP Top 250 for two years in a row.

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Alysse Prosnick Vice President of Operations Angel Oak Mortgage Solutions Atlanta AngelOakMS.com Alysse Prosnick has led many initiatives that has allowed Angel Oak to experience significant growth due to her commitment and dedication. When Alysse first started at Angel Oak, the firm only handled broker business. She helped add substantial opportunity and growth by helping to create four levels of correspondent lending offerings that has led to a significant expansion of business both internally and externally. She also spearheaded and implemented other initiatives, such as a TPO Connect Portal, eSignature technology, TRID processes, systems and compliance checks. She has also worked closely with her team to open Angel Oak’s Dallas operations.

Evangeline Scott Certified Mortgage Planner Finance of America Mortgage Folsom, Calif. TeamScottLoans.com Evangeline Scott, aka Wonder Woman, is known for her “Get It Done” approach to business and providing outstanding service. Evangeline is a Certified Mortgage Planner and started her lending career in the late 1990’s. Her experience, honesty and hands-on approach is an asset during every transaction and shines through with each client she helps. Evangeline is committed to helping people achieve homeownership. She has always been a top producer, but that is not what drives her. She loves what she does, the relationships she builds and the impact she is able to have in peoples’ lives ... one loan at a time!

Prateek Singh Khokhar Chief Financial Officer American Pacific Mortgage Roseville, Calif. APMortgage.com Prateek Singh Khokhar joined American Pacific Mortgage (APM) in 2017 as Chief Financial Officer. With nearly 20 years of experience in the mortgage banking industry, Prateek has substantial expertise in debt and equity capital raising, M&A activity and overall corporate finance. Prateek has been a featured speaker at several MBA conferences. Prateek oversees all areas of finance, accounting, treasury and payroll. He works with senior leadership to serve as a valuable strategic partner to APM and all of its branches to grow APM’s lending platform. People and culture, even in a finance setting, are the most important ingredients for success to Prateek.

Adam Stern Chief Information Officer New Penn Financial Plymouth Meeting, Penn. NewPennFinancial.com Adam Stern joined New Penn Financial in May of 2016, and was promoted to Chief Information Officer in 2018, overseeing all technology, enterprise execution and business intelligence functions. His vision to connect the best process and technology solutions at the right points in the loan manufacturing processes has been transformative to New Penn’s user experience. Stern previously worked as Senior Vice President, Analytics for Prospect Mortgage. Prior to that, his career included positions at ACA Asset Management/Buczek Enterprises (Chief Financial Officer) and Vantium Capital (VP, Business Development & Analytics).

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John Sherman President American Financial Network Inc. Brea, California AFNCorp.com John Sherman, President of American Financial Network Inc. (AFN), has nearly two decades of solid mortgage industry experience. His leadership has been instrumental in AFN’s continual advances and growth, guiding AFN to its current rank of one of the top mortgage lenders in the nation. John has led AFN to successful milestones, by constantly improving processes, products and services. Prior to his current role as President, John served as Chief Operating Officer of AFN after a stint at New Centennial as Vice President of Operations.

Phil Shoemaker Home Point Financial Executive Managing Director–Chief Business Officer Dallas, Texas HomePointFinancial.com Phil Shoemaker joined Home Point Financial in September of 2018 as Executive Managing Director–Chief Business Officer. He has a proven track record of building strong lending originations teams and developing proprietary technology platforms. Phil has more than 20 years of experience, most recently serving as Executive Vice President, Chief Operating Officer for Production at Caliber Home Loans. During his tenure at Caliber, Phil also served as Executive Vice President, Wholesale Lending, Chief Administrative Officer and Senior Vice President, National Operations. He previously held leadership positions at StoneWater Mortgage and First Magnus Financial.

John G. Stevens Vice President Cornerstone Mortgage Group Highland, Utah JohnGStevens.com John G. Stevens has worked in the mortgage industry since 2003, and considers this to be the best career choice for the rising group of Millennials. John has served as: President of the Utah Association of Mortgage Professionals (2010), and has served NAMB as: President, Vice President, President-Elect, Delegate, PAC Chair, NAMB+ President, Legislative Action Fund Chair, NAMB National Chair, and member of the Membership, By-Laws, Policy and Procedures, Nominating, Finance, and Government Affairs Committees. John has served as President of the Rotary Club of Pleasant Grove, Chair of the Pleasant Grove Planning Commission, and Chair of the Utah County Planning Commission.

Melanie Stuckey Chief Executive Officer Synergy Mortgage Group LLC Tallahassee, Fla. InnovativeMortgage.com Melanie Stuckey, known as the “Miracle Worker,” is Chief Executive Officer of Synergy Mortgage Group LLC and a huge contributor to financial literacy in her community. A Graduate of Florida A&M University, Melanie has traveled around the U.S., teaching consumers how to successfully navigate the real estate by obtaining A+ credit. With more than $30 million in volume, Melanie is a force to be reckoned with as she continues to lead her team with passion, dedicate time to teach community wealth building, and to create limitless success in the mortgage industry.

Jon Tallinger

John Treadwell

Laura Wales

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Senior Vice President of Financial Planning and Analysis RoundPoint Mortgage Servicing Corporation Charlotte, N.C. RPMServicing.com In her current role as Senior Vice President of Financial Planning and Analysis, Laura Wales oversees all aspects of financial planning and analysis for RoundPoint Mortgage Servicing Corporation, including short and long term projections at the corporate and business segment levels. Prior to joining RoundPoint in 2014, Laura served as Assistant Vice President of Finance for Nationstar Mortgage, where she was responsible for comprehensive financial planning of the Forward Servicing division. Prior to Nationstar, she served as VP of Accounting and Finance for Vantium Capital, a boutique specialty default servicer.

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Head of Fannie Mae Innovation Lab Fannie Mae Washington, D.C. FannieMae.com John Treadwell is the Head of Fannie Mae’s Innovation Lab, where he oversees a team of 40plus researchers, developers and operations staff. The Innovation Lab creates products and services that bring certainty to the mortgage process. Some of those notable products and services include: DU Validation Services, Fannie Mae Appraisal Waiver, Discretionary Loan Selection Engine (TAU) and Collateral Underwriter. John joined Fannie Mae in April 2010 as an Economist after earning his Ph.D. in Economics from UC Irvine. He holds nine patents.

Co-Founder & Mortgage Consultant Philadelphia Mortgage Brokers Philadelphia PhillyMB.com Evan Wade Co-Founded Philadelphia Mortgage Brokers in February of 2018, specializing in VA loans. Evan is actively involved with various veteran’s service organizations, such as the USA Homeownership Foundation Inc. d/b/a Veterans Association of Real Estate Professionals (VAREP), a non-profit 501(c)(3) and HUD-approved housing counseling organization; Operation Safe Haven, and No Dog Gets Left Behind.

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Chief Growth Officer Class Valuation Troy, Mich. ClassValuation.com As Class Valuation’s first employee, Jon Tallinger has seen the company grow into one of the top Appraisal Management Companies in the country. Tallinger started in the appraisal industry at the age of 18. While earning an advertising degree at Michigan State University, Jon spent his summers accruing the apprenticeship hours that he needed to become a State Licensed Appraiser. He spent seven years in the field as an Independent Fee Appraiser before helping to start Class Appraisal. Jon has played many roles in his tenure at Class, ranging from building and running operations, to acting as Chief Appraiser, to his current role as Chief Growth Officer..

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President and Chief Executive Officer NRL Mortgage Houston, Texas NRLMortgage.com Ron Zach has always been well-known for his charisma and reliability to the mortgage business. With his dedication, he has never set an “Out of Office” message for his e-mail, even when on vacation with his family. He consistently delivers and strives for excellence. Ron’s career in the mortgage industry started in 2001, and since then, his titles have included Loan Officer, Area Manager, Branch Owner and now President and Chief Executive Officer. When NRL was first founded in 2012, the company had five branches and a revenue of under $1 million. Today, NRL has more than 68 branches, operates in more than 45 states and has recently reached a major milestone of $1 billion in production.

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Branch Manager Paramount Residential Mortgage Group Inc. (PRMG) Tampa, Fla. JVreeland.PRMGapp.com/Default.aspx Success is in Jordan Vreeland’s genes, but don’t be mistaken, he works relentlessly to honor the success of his family. He comes from a line of prosperous professionals in the banking industry, perhaps inspired by his great-great grandfather a participant in creating the Federal Reserve Bank. When he’s not cranking away at drawing up the financing solutions for excited homebuyers, Jordan spends his time at tech events, basketball games, traveling with family, boxing gyms, and on the elementary school grounds as father to his three amazing kids.

Sales Manager Guild Mortgage Henderson, Nev. TeamYurovchak.com David Yurovchak, Sales Manager for Guild Mortgage in Henderson, Nev. started out in the mortgage industry with the drive and focus to get every customer into a home best fitting their family and financial needs. David still keeps this as his primary focus in his daily transactions. David has created a team with the primary focus of serving the customer! David is also an amazing spouse and father of two beautiful children. He is always willing to look at what can be done better and has a positive impact in his community!

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David Yurovchak

NationalMortgageProfessional.com

Director of Strategic Operations Paramount Residential Mortgage Group Inc. Corona, Calif. PRMG.net With nearly a 20 year career in mortgage banking, Emily Vondrak, Director of Strategic Operations for Paramount Residential Mortgage Group Inc., has diversified her knowledge in warehouse collateral and facilities, to hosting state and agency audits, taking the lead on agency approvals, assisting in off shoring implementation, and helping maximize LOS systems and work flow to building out quality and risk management programs for many well-known mortgage banking companies across the United States.

The Next 40 Mortgage Professionals to Watch …

Title

Amanda Benson

Mortgage Loan Originator

Andy Brikho

President & Chief Executive Officer

Kelcey Brown

Chief Strategy Officer & Executive Vice President

Paul Carson

Co-Founder/Mortgage Consultant

Casey Dean

Strategic Sales

Matt Demorest

Founder

Chris DeRosier

Mortgage Loan Consultant

Matt Dorsey

Sales Manager/Mortgage Loan Originator

Brandi Floyd

Corporate Recruiter

Vanessa Frisch

Sales Manager/Senior Loan Officer

Gabriel Gillen

President

Stephanie Ham

Loan Consultant

Jordann Hartzheim

Mortgage Loan Consultant

Brooks Kelly

Branch Manager/Mortgage Loan Originator

Dan L’Altrella

Senior Loan Officer

Zach Larichiuta

Sales Manager/Mortgage Loan Originator

Xing Liu, Ph.D.

Chief Risk Officer

Ben Madick

Chief Executive Officer

Joe Manglardi

Mortgage Loan Originator

Anthony Marinaccio

Senior Vice President of Residential Lending

Laura Martell

Marketing Manager

Mountain West Financial Inc.

Jennifer Miller

Branch Manager

Hancock Mortgage Partners

Jorge Montoya

Senior Mortgage Consultant

Andres Munar

Market Leader

Nicole Novella

Senior Vice President of Underwriting

Robert Padron

Branch Manager

Joseph Pekula

Marketing Manager

Travis Rulle

Senior Vice President of Mortgage Operations

Preston Sims

Mortgage Loan Originator

Dane Smith

President

DeShawn Smith

Chief Operating Officer

CMS Mortgage Solutions Inc.

Siera Smith

Chief Operating Officer

WebMax

Courtney Tereszcuk

Treasurer

Justin Tucker

Chief Marketing Officer

Austin West

Account Executive

Sarah White

Senior Vice President of Marketing

Wesley Wyrick

Vice President of Sales

Serena Yang

VP of Marketing and Business Development

Martin Yapur

Mortgage Loan Originator

Adam Zima

President

DECEMBER 2018 n National Mortgage Professional N A T I O Magazine N A L MnONationalMortgageProfessional.com RTGAGE PROFESSIONAL

UNDER

Name

MAGAZINE’S

Due to the voluminous number of submissions we received for the “40 Under 40” list, there are those who continue to make 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 Homebridge Financial Services BRIK Home Loans WebMax Philadelphia Mortgage Brokers LBA Ware HomeSure Lending John Adam’s Mortgage Homebridge Financial Services Mortgage Network Inc. American Mortgage & Equity Consultants Family First Funding LLC Caliber Home Loans M & M Mortgage Homebridge Financial Services Fairway Independent Mortgage Company Homebridge Financial Services NewDay USA Matic Homebridge Financial Services Key Mortgage Services Inc.

Guild Mortgage Movement Mortgage NewDay USA 1st Financial Inc. WebMax RoundPoint Mortgage Servicing Homebridge Financial Services Venus Mortgage Capital

Home Point Financial WEST, a Williston Financial Group company FundLoans Class Valuation Victorian Finance Sunset Equity Funding Homebridge Financial Services Champions Mortgage LLC

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Machine Learning in Marketing By Noel Riddle

here is a massive change occurring in online marketing. It’s just starting, but unless you as a mortgage company owner do not start to embrace it now, you will be left in the dust by those who do! This isn’t just my opinion … it is an absolute fact. When a person goes online to begin their research for a mortgage, they display a behavior pattern. Machine learning (artificial intelligence) identifies this pattern. It doesn’t matter where that person is in the process, machine learning identifies it. It is analyzed billions of times each day. It has it captured and now it is waiting for a mortgage company to access this information and use it to market directly to that person. Take a moment to absorb this … if a machine knows who is “in market” for a mortgage, wouldn’t it make sense for you to access this information before anyone else does? So, how does the cycle start for the mortgage company? It starts by installing a smart pixel on your Web site that identifies all of those who visit your site using your current keywords or demographics. It doesn’t matter if they leave their contact info or not. The smart pixel has their complete identity … their information has been captured (for all social media platforms). Then, it eliminates all the unwanted visitors–the bots that are wasting your money. Let’s take a moment to discuss bots. Bots are programs created to automate repetitive task, and they fall into two major categories: Good bots and bad bots. According to ShieldSquare,

more than 50 percent of the Internet traffic is comprised of bots, and, most of them have malicious intents. Bots can create thousands of page visits originating from a single IP address which can waste thousands of your advertising dollars. They can create fake leads which eat up your Originators’ time and effort. They can skew your marketing analytics by skewing real Web traffic to the Web site, creating inefficient ROI on marketing programs. With the amount of power in today’s computing, these bad bots have become extremely sophisticated. They are now able to emulate human-like behavior in order to remain undetected by all types of bot detection methodologies. Okay, back to the smart pixel list that has eliminated the bots. You now you have a set of people who are in-market for a mortgage. Market to them first, as they already know your mortgage company and are the number one, very best possible audience. Next, take that list to Google or Facebook and tell them you want to market to a behavioral match of people just like the ones on the list. These are people who have never visited your company’s Web site–much better than keywords or demographics where you are just marketing to the masses. While Fortune 500 companies such as Wal-Mart, Sam’s Club, Amazon and the like have been utilizing Artificial Intelligence (AI) identifies this pattern. It doesn’t matter where that person is in the process, machine learning identifies it. It is analyzed billions of times each day. It has it

captured and now it is waiting for AI for several years, it is just now making its way to small and midsized businesses. However, within the next few months, it will begin to proliferate. Here’s what you don’t know There are innovations and then there are innovations. The challenge for any business owner, President or CEO is to decide which is which and then apply the most appropriate to their business. Let’s list some things here you don’t know you don’t know: l Do you know that you can market to your Web site visitors who do not leave any contact information? l Do you know that it is possible to market directly to only those who are “in-market” for your product or service? l Do you know you can actually measure how motivated the potential client is–no matter how they are looking for your product or service (Google, Facebook, Twitter, LinkedIn … any of them). l Do you know you can do all of the above while cutting your acquisition costs by as much as 65 percent? l Do you know it is not necessary to use keywords or demographics to reach your potential client or customer?

All of the above are absolutely true. The secret weapon is “Identity Resolution” and “Behavior Targeting.” It is Artificial Intelligence–AI. I’m not meaning to preach to you. I am trying to save you! The amount of information–data–is doubling at lightning speed. Plural Insights says, “The year 2018 will be a pivotal year in the rise of analytics-as-aservice.” Marketing Insider Group says, “In the past, big data was used primarily by big businesses, not only because their broad scope of service demanded more precise data, but also because they were the only ones who could afford the technology and channels used to collect and analyze the information. Much like any other processes in the business world, Big Data has evolved at an unbelievably fast pace. The best example of this is Big Data in the cloud. Today, even small businesses can take advantage of Big Data, as the convoluted setup and costly data experts aren’t required anymore because everything they need can be accessed remotely.” As I said earlier, unless you, as a mortgage company owner, embrace machine learning (Artificial Intelligence–AI), you will be left in the dust … because your competitors will.

Noel Riddle is the former president of Mortgage Training Group Inc., the National Association of Mortgage Training and author of numerous mortgage-related books. Noel has served as President and Managing Partner of National Furniture Leasing and Finance, as well as Managing Member of Commercial Mortgage Services LLC. He may be reached by e-mail at NRiddle@PaybackDigital.net, call (800) 256-6487, ext. 705 or visit PaybackDigital.net/0005.

Addressing Post-Housing Crisis Issues

Problem-Solving Still Needed in the Mortgage Industry BY PAM MARRON round 2010, unique credit and mortgage problems developed out of the housing crisis. Credit code for short sales was showing up as a foreclosure and no refinancing for specific negative equity first and second loans existed. Getting solutions was important. It was a shock to find issues were known about, but little attention was given to a resolution.

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Three reasons why known problems were not addressed It became evident that often, a lack of willingness to push on a solution for a problem, was secondary to three primary reasons: l Fear of creating a Moral Hazard1, or that the consequence of the solution would not seem harsh enough to discourage the event, as in the case of short sales. l The ability to create a non-QM mortgage product where, with slight underwriting alterations, additional profit could be made on the interest rate and the cost of a loan. Additionally, non-QM mortgages do not have to undergo as much scrutiny as QM mortgages. l The cost of the fix,(i.e. changing a credit code) was more expensive than making a workaround or paying a fine. Also, making a fix acknowledges an error and exposure to lawsuits. Foreclosure credit code is still applied to short sale, modification and deed-in-lieu credit, though Fannie Mae has a workaround in

their automated system when the error results in a conventional loan denial. Freddie Mac does not have a workaround and past short-sellers will receive a conventional loan denial until seven years past the short sale date even though criteria allows a new conventional mortgage after four years. Why most of the remaining 4.9 million negative equity homeowners have not refinanced Even though home values have steadily increased, there are still 4.9 million negative equity homeowners2, or 8.8 percent of U.S. mortgage holders, that have at least 125 percent-plus negative equity in their home. But for non-Fannie Mae/nonFreddie Mac conventional first mortgages, home equity lines of credit (HELOCs) and second mortgages where negative equity still exists, there is no refinance program available. Most lenders still require mortgage delinquency and proof of a hardship before a modification will be considered for these loan types.

and interest payments. During the housing crisis, it was common to see HELOC’s with a 15or 20-year amortization and a sevento 10-year reset date. Upon the reset date, the entire HELOC balance is spread over the remaining years of the 15- or 20-year term with full principal and interest payments. Loan holders are shocked to commonly see a 400 percent-plus increase in payments upon the reset! If a HELOC has negative equity, the lender will not commonly refinance, and will not modify unless the homeowner is delinquent. Most often, the surprise of the increased payment comes approximately four months prior to the reset date. If the homeowner has equity, the HELOC can be refinanced. But if there is negative equity, the lender will not refinance the HELOC. There is no truth in lending or amortization schedule required for a HELOC even though this is secondary financing on real estate! Upon review of HELOC closing documents, it is rare to see clearly written direction on how

interest only HELOCs reset to a fullyamortized loan for the remaining term. What is often found is a short clause that may spell out that a refinance will not be available if more is owed on the property than its value. Multiple problems with PACE loan financing There are different types of Property Assessed Clean Energy Program (PACE) financing programs. One problem is where equity is not a consideration and more of a PACE loan is extended than equity available. Homeowners are shocked when they try to sell the home and cannot cover the PACE loan payoff with the sale. Elderly homeowners have also been denied a reverse mortgage because of the lack of equity. Another issue is that the PACE loan payments can be added to the homeowner’s tax bill assessment. If the homeowner is unable to pay for the increased tax bill, a tax certificate can be sold on the property. Stay tuned.

Footnotes The little known danger of interest-only HELOC’s with negative equity Prior to the housing crisis, HELOCs were used often as secondary financing to alleviate the need for private mortgage insurance (PMI). Additionally, interest-only payments, lower than the fully-amortized payment, were a big selling point. But interest-only loans have a reset date where the balance of the loan, often close to the full loan amount, must be paid with higher principal

1—Definition: Moral hazard is a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost. https://economictimes.indiatimes.com/definition/moral-hazard 2—Attom Data/RealtyTrac Q3 2018.

Disclaimer: While I am a member of the HUD Housing Counseling Federal Advisory Committee, the opinions noted are those of the author only. 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) 3758986, e-mail PMarron@InnovativeMortgage.onmicrosoft.com or visit HousingCrisisStories.com, CloseWithPam.com or 8Problems.com.

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accessible solution for all banks and credit unions with an automatic calculation for loan loss reserves to ensure CECL compliance.” New CreditXpert Offering Aims to Raise Customer Credit Scores

SafeChain has announced that it has added blockchain to its wire fraud prevention platform SafeWire. The addition of blockchain to SafeWire provides increased security for real estate

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

n National Mortgage Professional Magazine n DECEMBER 2018

SafeChain Adds Blockchain to Safeguard Real Estate Wire Transactions

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:

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CreditXpert has announced the release of its new mortgage software solution, CreditXpert Wayfinder, which automatically runs through hundreds of options to find the best combination of actions borrowers can take to improve their credit scores. “In today’s market, lenders are facing diminishing loan volume and low pull-through rates. CreditXpert Wayfinder gives lenders the edge they need to thrive and not just survive,” said Dave Chung, CoFounder and Managing Director of CreditXpert Inc. “With CreditXpert Wayfinder, MLOs don’t need to be experts to educate borrowers with high confidence on how to improve their credit scores to the level required for a loan program or pricing. CreditXpert Wayfinder does the heavy lifting to consistently help credit-challenged borrowers achieve the American dream of homeownership.” CreditXpert Wayfinder offers a way to achieve an average 27point credit score improvement for clients and a 30-plus point improvement for over half of clients with scores below 640. “Borrowers expect MLOs to provide the expertise they need to get a great mortgage loan, while MLOs want to have the right tools to help them close more loans and ensure great experiences for borrowers and referral partners,” said Chung. “CreditXpert Wayfinder is the easiest and most reliable way to get borrowers the score they need to qualify for the right mortgage loan for them.”

wire transactions by ensuring fraudsters cannot tamper with wiring instructions undetected. “SafeChain is committed to stamping out wire fraud in the real estate industry,” said Tony Franco, Chief Executive Officer and CoFounder of SafeChain. “By coupling an ultra-secure, distributed ledger with SafeWire’s identity verification and bank-level authentication technology, we have made the real estate wire transaction significantly more

difficult to hack, thus providing homebuyers, title companies and real estate agents additional assurance that their transaction is as fraud-free as possible.” The SafeWire platform safeguards real estate wire transactions by verifying participants’ identities and account ownership and providing a secure portal to transmit wiring instructions. With blockchain, SafeWire now offers a tamperproof storage mechanism for wiring instructions that notifies users immediately if an unauthorized party attempts to alter the instructions.

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THURSDAY

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WEDNESDAY

Show Title

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

How Should Leaders Respond to Industry Losses? Invest in Diversity.

DECEMBER 2018 n National Mortgage Professional Magazine n

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won’t mince words: The mortgage industry is hurting.

As the refinance market continues to shrink, mortgage shops as large as Wells Fargo and JP Morgan Chase and as scrappy and innovative as Movement Mortgage announced widespread job cuts and layoffs as their bottom lines hemorrhage and revenues dip. That came just as mortgage applications fell to their lowest level since late-2014, and interest rates climbed to 5.1 percent, their highest level since 2011, according to Reuters. Sales of existing-homes fell in October to their lowest level since 2015, the sixth straight month sales of previously-owned homes have declined, reports the National Association of Realtors (NAR). With the industry in such disarray, it’s tempting to start panicking and searching for the nearest exit, but those of us who are industry leaders know better. That’s because we’ve been here before … take the financial crisis. Between 2007-2009, banks and lenders laid off thousands of workers as demand for mortgages dried up in the face of the housing bubble crash and the sub-prime mortgage crisis. In subsequent years, those same companies rehired workers as demand slowly revived and employees were needed to handle refinance loans as interest rates began to fall. And here we are again. To

some, the industry is sounding its death knell as it prepares to enter the throes of another crash in the housing market. It’s too soon to dismiss their warnings as overblown pronouncements of doom or prophecy of what’s to come (the National Association of Realtors Confidence Index shows that most real estate agents expect housing conditions to improve over the next six months, according to HousingWire). Either way, for those of us committed to leading our organizations through these challenging times, now is the time for us to readjust, refocus and recalibrate. But how? One of the keys is investing in a diverse workforce. Another is maintaining open lines of communication. I’ll explain … Wait. Listen. Respond. There’s no harm in giving your team members the space they need to vent about how they feel about what’s happening in the market. Allow them to be honest with you about how they feel and what they fear. Then, it’s your turn. Leaders must communicate openly and honestly about where their organization is and take a hard look at where it’s headed. That way, their employees know what’s coming on the horizon and can adjust accordingly. Clue your team members in on how you’ll adjust to the new normal. Structure a plan of attack (or survival) and share it with your employees. Answer their burning questions: How will we handle the dip in originations? What marketing materials do we need

to get the business in front of borrowers? What events should we host? What partnerships should we forge? Now is the time to think innovatively about your business and keep your team members involved in the brainstorming and strategy setting. Melding your ideas with theirs will make your plan that much sharper and stronger. Invest in diverse talent Employee engagement is more important now than ever. A recent Gallup study shows that a staggering 70 percent of employees are not showing up to work committed to giving their best performance. Of those, 52 percent are just “sleepwalking” through their day. Why the disconnect? Not enough employers prioritize diversity in their workforce. And if you think there’s no correlation, consider research from Glassdoor, which shows that 67 percent of job seekers want to join a diverse organization. And a 2015 study from Bersin by Deloitte shows that companies

that prioritize diversity enjoyed a 2.3 times higher cash flow over a three-year period. Why? It’s simple: Diversity has a competitive advantage. It’s good for business and is steadily becoming an expectation of employers, not just a nice-tohave perk. Mortgage lending is one of the industries where diversity can have the greatest impact. Just look at the shape of homeownership nationwide. First-time homebuyers make up more than 50 percent of the housing market today. Many of those borrowers are minorities who are looking for mortgage professionals who look like them, talk like them and can help them navigate their housing finance options. That’s important because those homebuyers are going to want to do business with people who understand and can relate to them. Bridging those kinds of gaps will only become more important as the racial demographic of the U.S. changes to reflect more black and brown faces in the years ahead.

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.

nmp news flash

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Mortgage Equity Partners (MEP) staffers recently joined with industry colleagues from Rebuilding Together Boston and the Massachusetts Mortgage Bankers Association to rebuild the home of a 77-year-old widow of a disabled veteran in the Dorchester section of Boston. The homeowner and her husband purchased the home at auction in 1994. Unfortunately, her husband succumbed to cancer in 2004, and since then, she has struggled to maintain the property, having

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Improvements for Disabled Widow of Veteran

suffered from multiple health challenges. Volunteers joined forces to assist this deserving family, as the combination of volunteers and generous financial contributions were responsible for the following home improvements: A new kitchen with new appliances; installation of windows; installation of new doors; indoor painting/repair of rooms/railings; landscaping/new patio/and painted gate; rebuilt porch roof and ceiling;

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:

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second quarter of 2016. The average gross flipping profit in the third quarter was $63,000, an average 42.6 percent gross flipping return on investment, down from an average 44.1 percent in the previous quarter and down from an average 48.1 percent one year earlier. This was the lowest level recorded since the first quarter of 2012—a 6.5-year low. Arizona had the highest third quarter home flipping rate among the states (7.7 percent), followed by Tennessee (7.5 percent), Nevada (7.2 percent), Alabama (6.6 percent), and Maryland (six percent). Among 133 major metropolitan areas with at least 50 flips in the third quarter, Memphis had the highest rate at 10.4 percent, followed by Atlantic City at 9.1 percent. “Home flipping acts as a canary in the coal mine for a cooling housing market because the high velocity of transactions provides home flippers with some of the best and most real-time data on how the market is trending,” said Daren Blomquist, Senior Vice President at ATTOM Data Solutions. “We’ve now seen three consecutive quarters with yearover-year decreases in home flips. The last time that happened was in 2014 following the mortgage rate jump in the second half of 2013, but it’s still far from the 11 consecutive quarters with yearover-year decreases in home flips extending from the second quarter of 2006 through the fourth quarter of 2008 and leading up to the last housing crash.”

plumbing and electrical work; health and safety updates; and much more. “I had no idea what to expect when I signed up for this project, but it just felt like the right thing to do,” said Shawn P. McGee, Renovation Lending Manager at Mortgage Equity Partners. “I have quite a bit of experience in the home renovation field and I wanted to be able to help. The nice thing is that we had no idea who we would be helping or where we would be going when we volunteered, but this situation and this family really touched my heart. I was happy to help the family of a veteran.”

DECEMBER 2018 n National Mortgage Professional Magazine n NationalMortgageProfessional.com

Are You Ready for the

New URLA? By John Haring

or the first time in nearly two decades, major changes are coming to the Uniform Residential Loan Application (URLA) loan application used in all agency and some non-agency residential loan transactions. Through a Fannie Mae and Freddie Mae initiative, this important document is being overhauled to improve efficiency, transparency and certainty in the mortgage process. And while the change won’t be easy for lenders to make, it is long overdue. Yes, the new form has the potential to disrupt new originations and secondary marketing. However, it will help move home lending deeper into the digital age. Having gone over the new form in great detail, I’m confident that it’s a huge improvement over the old form. It has a far simpler, cleaner overall look and feel, and provides better instructions for borrowers. Plus it has new fields that reflect the current mortgage lending environment. All that being said, the new URLA is creating anxiety among lenders—and for good reason. Change never comes easily in an industry as complex and as highly regulated as ours. Potential disruption from the new form could be as bad or worse than the TILA-RESPA Integrated Disclosure Rule two years ago, and there’s only a little more than a year to prepare. Fortunately, lenders

can minimize the disruption by taking steps now. Big changes to the URLA The biggest change to the updated application aside from new elements and its appearance, is the way that information is reorganized. The current loan application was designed from a lender’s perspective and is very dense with information. This new, dynamic URLA has been redesigned to be consumer-friendly and to look more like other disclosures. Some new features were designed to enable prospective borrowers to complete more of the process by themselves, without a Loan Originator. For example, the last time the form was significantly modified, there was no consideration given to e-mail addresses and mobile phone numbers. The new form not only accounts for this information, it’s also dynamic. On traditional paper applications, there is limited space to list certain things like the borrower’s current and previous employers, or the number of properties the borrower owns. The new form is dynamic, with expandable and collapsible sections. It can accommodate all the information a borrower has to give, while keeping relevant information in context as opposed to overflowing into separate continuation pages. There are many other differences to the new form. For example, the new form adds a section about the consumer’s

language preference but states, “Your loan transaction is likely to be conducted in English,” and now asks if the borrower has language preference other than English. Also, the form has a new component for an “Additional Borrower,” which replaces the traditional co-borrower section and is intended for someone who might share assets or liabilities with the primary borrower. Another change can be found in the section for current and prior residences, where every address listed now includes a field for rental or mortgage payments. Under employment history, there’s a detailed section for income included for each job listed. Another new section provides a place to list assets tied to the real estate transaction, such as earnest money, sweat equity and employer assistance. These additional levels of detail will make it easier to process, underwrite and securitize loans. Home Mortgage Disclosure Act (HMDA) requirements that went into effect earlier this year are also integrated into the new form. Plus, information about the types of loans veterans are getting will be collected. A new section covers credit counseling. And a new, unmarried addendum helps to further define the relationship between the borrower, additional borrowers and other persons with interests in the property. A lot of work lies ahead While changes in the new form are overwhelmingly positive, many of them will undoubtedly impact a lot of moving parts for

lenders. Every stage of the origination process will be affected, including investor relationships, from taking the initial application to documenting the information on it, obtaining an underwriting decision and exchanging information with other parties. For this reason, the new form has the potential to be as disruptive–or even more disruptive–than TRID. Consider this: All lenders’ Web sites that have built-in applications will need to be modified, as will all point-of-sale platforms. Prequalifications will need to change to accommodate the updated form. And the impacts don’t stop once the loan closes, either. Data on closed loans with the new application will need to be provided to investors and integrated into servicing platforms. Adoption will be a critical challenge for many lenders. Because it has become increasingly important for organizations to understand their data in order to run their businesses successfully, leveraging the new data fields in the updated form will be crucial. Another challenge will be maintaining ongoing compliance during the period the forms are being implemented and then beyond. All of this means lenders will need to make a lot of decisions. For instance, when there is more than one buyer, they’ll also need to figure out the number of joint borrowers, how non-borrowing owners there will be and whether continued on page 51

The NAPMW Report BY CATHY KANTROWITZ

NAPMW 2019 Annual Education Conference Don’t Miss NAPMW’s Top Conference Promoting Women In Mortgages The NAPMW 2019 Annual Education Conference “Jazzin’ Up Mortgage in the Big Easy,” will be held Wednesday-Saturday, May 1518, 2019 at the historic Hotel Monteleone in New Orleans. NAPMW has brought together an inspirational lineup of top women—leaders in business, thought leaders, and women who lead the scoreboard of achievement. You’ll want to be part of this extraordinary event, where education meets networking, where personal growth accompanies professional development, and where fun meets awesome. This is where mortgage women meet their future. NAPMW has assembled a top educational agenda, impressive speakers, and a location that can’t be beat. Join NAPMW at the Hotel Monteleone in New Orleans, where you’ll find yourself at the pinnacle

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of this impressive Conference. With special overnight rates that will make you smile, you’ll be able to fully enjoy the offerings that New Orleans has for you at the close of each conference day. So don’t wait to register, and don’t delay in getting your overnight rooms. The event will also feature a packed exhibit area, where attendees will have a chance to meet with some of the industry’s leading companies. In the Education Sessions, over a meal at the Gala Dinner, or among the many sponsors, you’ll build new relationships, connections and ideas that will help you move your career to the next level. The Hotel Monteleone is a beautiful facility, convenient to many entertainment venues, boasting world-class restaurants and theater. Expand your experience at the NAPMW Annual with great networking at many of New Orleans’ top spots.

NAPMW 2019 Annual Education Conference Agenda (Subject to Change) Wednesday, May 15, 2019

Friday, May 17, 2019

8:00 a.m.-5:00 p.m. NMLS CE Class 2:00 p.m.-5:00 p.m. Registration & Exhibitor Set up 5:00 p.m.-6:00 p.m. Opening Welcome Cocktail Reception With Exhibitors

8:00 a.m.-8:30 a.m. Breakfast With Exhibitors 8:30 a.m.-10:15 a.m. General Session 10:15 a.m.-10:30 a.m. Break/Expo Open 10:30 a.m.-11:30 a.m. Speaker 11:30 a.m.-12:30 p.m. NAPMW Member Information 12:30 p.m.-2:00 p.m. Lunch 2:00 p.m.-2:30 p.m. Break/Expo Open 2:30 p.m.-4:00 p.m. NAPMW Board Meeting & General Business Meeting 4:00 p.m. Main Ballroom Closed 6:00 p.m.-6:45 p.m. Cocktail Mixer With Exhibitors 7:00 p.m.-11:00 p.m. Awards Gala Dinner “Jazzin’ Up Mortgage In the Big Easy” and Installation of 2019-2020 NAPMW Officers

Thursday, May 16, 2019 7:00 a.m.-8:30 a.m. Breakfast With Exhibitors 8:00 a.m.-8:30 a.m. First Timers Meet & Greet 8:45 a.m.-9:00 a.m. Presentation of Colors 9:00 a.m.-9:30 a.m President’s Welcome With NAPMW President Laurel KnightKeane/PNPACK: 1st Timers/Local Association Presidents 9:30 a.m.-9:45 a.m. Break/Expo Preview 9:45 a.m.-11:15 a.m. Keynote Speaker (To be Determined) 11:15 a.m.-11:30 a.m. Break With Exhibitors 11:30 a.m.-12:30 p.m. Speaker 12:30 p.m.-1:30 p.m. Lunch With Exhibitors–Expo Open 1:30 p.m.-3:00 p.m. Speaker 3:00 p.m.-4:00 p.m. Sidebar Session 1 (repeated from 4:00 p.m.-5:00 p.m.) 3:00 p.m.-4:00 p.m. Sidebar Session 2 (repeated from 4:00 p.m.-5:00 p.m.) 3:00 p.m.-4:00 p.m. Sidebar Session 3 (repeated from 4:00 p.m.-5:00 p.m.)

Saturday, May 18, 2019 9:00 a.m.-10:00 a.m. NAPMW Local Association President Training 9:00 a.m.-10:00 a.m. NAPMW Local Association Treasurer Training 10:00 a.m.-1:00 p.m. NAPMW Board Meeting

For more information, visit NAPMW.org, call (608) 886-9817 or e-mail Admin@NAPMW.org.

are you ready for the new urla? continued from page 49

to provide separate applications or use the additional borrower pages. Other decisions will include when to select “does not apply” indicators, which will appear on the blank printed application, and considering the implication of selecting a foreign language, which could affect other documents in states like California and Texas. The impact to document tracking and investor delivery need to be factored in, as well as the fact that the new URLA is a much larger digital document than its predecessor and requires extra storage space. There are also changes to the lender’s loan origination system (LOS) and the customization of plugins to consider. And if they print Lender/Loan Information pages, they’ll need to decide whether the Loan ID, Universal Loan ID, or both should appear in the header of a printed document—and a host of similar, smaller decisions that sound minor but could have far-reaching consequences if not thought through.

The time to prepare is now While the revised form becomes mandatory on all new loan applications taken on or after Feb. 1, 2020, automated underwriting systems are already being updated for the new forms. The GSEs want technology vendors to begin testing the new form by the first quarter of next year, and home lenders can start using it this upcoming July. That may sound like plenty of time, but once the spring housing season gets under way, I guarantee it will spring up on lenders. In the meantime, now is an excellent time for mortgage firms to prepare for this potentially jarring transition. Lenders can start immediately by first reviewing their operational procedures. For example, how will they handle loans that were originated with the old application, but are still in the active pipeline when the new forms are implemented? This issue will be exacerbated on construction loans, given their

lengthy lifecycle. Extra attention and support will need to be provided to the preferred language. Fortunately, there are resources available to help with this effort. The Federal Housing Finance Agency (FHFA) has published a new clearinghouse that will provide Spanish translations for English disclosures, while Fannie Mae and Freddie Mac are publishing a Spanish translation guide for the new application. Lenders can start by discussing with their legal counsel how much they plan to utilize these guides. Once the forms are integrated into automated underwriting systems, lenders should begin testing the updated application and updating any application plug-ins. This will be a good time for training employees and familiarizing them with the new form and workflow. This training should include how to complete

applications and when to use “does not apply” indicators on the new form. Finally, lenders also should keep their investors’ needs in mind and be aware of where each investor stands in the transition process. Even though they might want to start testing in July, their investors might not be ready. The time to start having these conversations is now. The good news is that lenders have time to analyze their processes and identify potential problems before the final implementation date 15 months from now. While there may be challenges ahead, the changes upon us are very positive as we make progress in this everevolving age of the digital mortgage. Ultimately, the new URLA is simpler, cleaner and provides better instructions for borrowers, and that’s a step forward in powering the American Dream of homeownership.

John Haring serves as the Director of Product Management for Ellie Mae, responsible for driving the strategy and operations for the Encompass Digital Mortgage Solution. Prior to joining Ellie Mae, John served as the Vice President of Compliance for Supreme Lending, and has spent the better part of the last 15 years supporting banks, lenders and brokers in implementing significant regulatory changes that impact the mortgage industry. 51

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heard on the street

Total Expert’s total funding to $34 million. “We started Total Expert to ensure banks and lenders stay ahead of how customers expect to communicate, shop, and manage their financial lives in the digital/social era,” said Joe Welu, Founder and Chief Executive Officer at Total Expert. “People expect digital simplicity and real human relationships, and financial services companies too often lose these relationships when they don’t engage with personalized, automated communication as people go from awareness to lead to transaction. We solve this using data to drive each customer’s journey toward a relevant transaction, then manage each customer relationship for life.” Home Point Integrates With Capsilon

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Home Point Financial Corporation has announced an expanded partnership with Capsilon, a provider of mortgage automation software. Home Point chose Capsilon to eliminate bottlenecks in the loan process, boost productivity and reduce risks. The Capsilon IQ platform was integrated with a proprietary tool called Automated File Intake for Home Point’s Correspondent channel. Capsilon IQ was also rolled out across their wholesale channel. “Capsilon has been an innovative partner throughout this process. Their understanding of the mortgage business helped us build a customized solution that boosts productivity across channels,” said Maria Fregosi, Chief Capital Markets Officer at Home Point Financial. “We look forward to continuing our relationship with Capsilon to help provide a better experience for our lender partners.” Home Point reduced Delegated Correspondent purchase review time by 33 percent through integration with Capsilon IQ, improving operational efficiency and delivering a better experience for its clients. Motto Mortgage Hits Milestone With 100th Franchise Sold

Motto Franchising LLC has

continued from page 31

announced the sale of its 100th Motto Mortgage franchise, a major milestone just 23 months after its launch. Motto Mortgage was established late October 2016 and sold 50 franchises in its inaugural year in business. Motto Mortgage is also among the top one percent of fastest-growing emerging franchises in 2018, according to an analysis of over 2,500 franchise systems conducted by Franchise Grade. “One hundred franchises sold in less than two years is remarkable for a startup franchisor, regardless of the industry. This just showcases how revolutionary the Motto Mortgage model truly is,” said Motto Franchising LLC President Ward Morrison. “It’s incredibly exciting. We’re charting new territory as the first national mortgage brokerage franchise and will continue to capitalize upon this momentum.” Bill and Kendall Bonner of Tampa, Fla. purchased the 100th Motto Mortgage franchise. Experienced RE/MAX franchise owners with a combined 40 years of experience as attorneys and real estate professionals, the Bonners will open Motto Mortgage Resource in late 2018. PRMI Honored by Salt Lake Tribune as “Top Workplace”

Primary Residential Mortgage Inc. (PRMI), which funded more than $5.4 billion in home loans in 2017, has been awarded a 2018 Top Workplaces honor for the third year in a row by The Salt Lake Tribune. The list is based solely on employee feedback gathered through a third-party survey administered by Energage LLC. The anonymous evaluation measures several aspects of workplace culture, including alignment, execution and connection PRMI CEO Dave Zitting said, “Over the past 20 years, we’ve built a company based around the core belief that our employees are our most valuable asset. We know that our success is purely a result of having the most talented and

dedicated folks in the business, which is why we work hard to ensure they know how much we appreciate all they do to make PRMI a top workplace.” NAMB Joins Newly-Formed International Mortgage Brokers Federation

The National Association of Mortgage Brokers (NAMB) has announced that it has accepted an invitation to participate in the newly formed International Mortgage Brokers Federation (IMBF) by representing the United States of America. NAMB joins groups from the United Kingdom, Australia, Canada and New Zealand as the initial partners within the Federation. Formed in October 2018, the IMBF serves as a global forum for bringing the international mortgage brokering community and its suppliers together to collaborate on shaping market practices, while influencing regulation and legislation through global advocacy. The organization also aims to develop and adapt new and existing standards that enhance the industry and promote strong ethical practices by its members across the world. “On behalf of NAMB and our thousands of members across the United States of America, I am thrilled to announce today’s news as this initiative marks a great moment in time for the global mortgage industry,” said Richard Bettencourt, CRMS, NAMB President. “NAMB is the leading authority in America when it comes to legislative, technological, and industry advancements within the mortgage marketplace and we are excited to share our insights within the IMBF while gaining new practices from our partners across the world. I am personally excited to watch this group grow and guide the next generation of mortgage professionals across the world.” The Federation plans to create the first global referral network where brokers can refer clients overseas if they move, yet still stay in contact with their client through the new relationship. Additional countries who use third-party origination networks to distribute loan products have been invited to join and the Federation expects to grow considerably by 2022.

Secure Insight Teams With DocMagic on New Online Training Program

Secure Insight has partnered with DocMagic Inc. to develop and host an online training program to teach attorneys, title agents notaries and other entities how to accomplish clear, compliant and completely paperless eClosing transactions. Secure Insight noted that while lenders have made good progress installing digital mortgage point-of-sale solutions, it is just the initial step to implement a true eClosing solution. DocMagic developed Total eClose, a comprehensive solution that enables a 100 percent paperless eClosing process from start to finish using a single-source vendor. “Getting over the adoption hump starts with ease of use and adequate training so users feel comfortable conducting business within the eMortgage ecosystem,” said Andrew Liput, President of Secure Insight. “We partnered with DocMagic because their Total eClose solution is one of the easiest and most intuitive in the industry, which is conducive to adoption for title agents, attorneys and notaries to understand and leverage.” Secure Insight has a database of more than 70,000 closing professionals who can take advantage of this vital training program, which provides the educational foundation that paves the way for their business practices to include eMortgages and eClosings. Lenders are increasingly seeking wellqualified professionals to work with and this wide-scale training program is poised to significantly move the adoption needle. MCT Moves to Secure Sensitive Borrower Data

Mortgage Capital Trading (MCT) has announced that it is incorporating the company’s patent-pending geocoding technology into its Bid Auction Manager (BAM) whole loan trading platform in order to shield borrower addresses from being shared with non-buying entities throughout the whole loan bidding process. continued on page 82

vendor or partner

continued from page 25

If the company hopes to rely upon and trust those they work with to create new service offerings, they are likely in the market for a partner. A real partner goes well beyond what a consultant would provide. Partners can help formulate new systems that can be used both by their internal teams and the lender or servicer they support. They can then also update and maintain those systems as required. Those businesses that pursue audacious goals are much more likely to seek out a partner than a simple outsourcer. If the things the company hopes to achieve haven’t been achieved before, a partner is more likely to be the real solution. So how does a company differentiate between a simple outsourcer and a true partner? Many outsourcers may try to look like partners, but a true partner will be readily identifiable for those who know where and how to look.

Michael O’Connell is Chief Operations Officer at Nationwide Title Clearing. Michael manages the majority of NTC’s 300plus employee workforce, as well as the overall quality and efficiency of NTC’s operation, including quality control, client relations, research and finance.

continued on page 84

As we make our way into the end of 2018, the Mortgage Action Alliance (MAA) would like to reflect on another successful year for MBA Advocacy. The industry has had many challenges, changes, and victories this year. Here are a few achievements we would like to share with you: l 27,000 MAA members: A 76 percent increase over 2016 l 3,220 downloads of MAA mobile app l Four companies with more than 1,000 MAA member employees l Two companies with more than 2,000 MAA member employees l 50,000 letters and tweets sent to elected officials, a 350 percent increase over 2016 l Contacted 95 percent of House & Senate Offices on key issues l 4,000 followers on social media l Raised more than $2.1 million for MORPAC, setting single-cycle and single-year fundraising records in the 2017-2018 election cycle l Contributed more than $2.2 million to federal candidates—with a candidate win rate of 82 percent l With fundraising and contributions to candidates, MORPAC is once again ranked as a top 20 trade association PAC nationally With MAA leading the way, industry advocacy played a key role in keeping the industry’s priorities front and center, scoring major wins with the Tax Cuts and Jobs Act (Public Law 115-97) and The Economic Growth, Regulatory Relief and Consumer Protection Act, (Public Law 115-174) which both included many important provisions to MBA members. With the midterm elections in the rearview mirror, now is a great time to begin proactively engaging and educating policymakers (current and the newly elected) during the final weeks of 2018. There will be 100 new members of Congress next year and now is an important time to tell lawmakers and regulators, influencers in Washington and throughout the country, all the good things our industry is doing to ensure the dream of homeownership is realized by millions of Americans. Policymakers need to know what you do locally to help families buy their first home or refinance their mortgage, how you create rental housing or help finance the buildings where your neighbors work or shop. Educating these new lawmakers early will put us in a strong position to promote and move forward with our legislative priorities in the 116th Congress. To that end, we encourage you to Join MAA if you haven’t already done so. You can join MAA for free at MBA.org/JoinMAA or search “Mortgage Action Alliance” in the App Store or Google Play to download the MAA mobile app. We have tools and materials available to help you connect with your current and newly-elected policymakers and MBA staff can help you every step of the way. If you are interested in running a MAA enrollment campaign at your company, please contact MBA’s Director of Political Affairs Alden Knowlton at (202) 557-2816 or e-mail AKnowlton@MBA.org. 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.

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Conclusion There are many amazing outsourcers and partners in the home finance world today, and if businesses will take care to ensure that they know what they need and what they should be looking for before they determine who to work with, they will be much more likely to find other businesses who meet their needs, fit their style, and can help them reach their goals.

A Message From MAA Chairman Gene M. Lugat

NationalMortgageProfessional.com

Six ways to know you’ve found a true partner A company that has the potential to be a true partner can be identified before the company is ever asked to sign an agreement. In fact, the time for ensuring that you are choosing a real partner is before you sign. Here are some indications that you are preparing to begin a new relationship with a real partner. A true partner will not be quick to make a sale or quick to finish a conversation. They will have many questions to ask you and will want to have a clear understanding of what you need and whether working together will be a good fit. The concept of “always be closing” is foreign to a true partner, who is much more likely to always be adding value. Working with a true partner will not be a rote, mechanical experience, and they will not simply look to tick the boxes on a service level agreement. A partner will always seek to engage you in an actual conversation. Part of that conversation will include bringing you new and valuable information, regardless of

whether they have closed a sale with you yet or not. A true partner will want to discuss with you how to build a better operation for your business. This will not consist of simply repeating the standard services they offer, but rather they will seek to truly understand what you do and what you hope to accomplish. Then they can offer valuable input as you look together toward enhancements that will improve your operation. A true partner will protect the information you share with them. When they engage with you regarding ideas and information specific to your business, they will be careful to offer both security and privacy. At the same time, they are willing to share with you their own expert information and insights. The experience with a true partner will always be two-sided. Conversations, information exchanges, and ideas will flow both ways. Both sides will be invested and involved in the conversation and the collaboration involved in the development of any new system or process. A true partner will want to sit down with you to determine a specialized process that meets your specific needs. They will be concerned not simply with which services you are willing to purchase, but with ensuring that your needs are truly met. This conversation—and the entire relationship—will be based on flexibility and continual communication, where new ideas are the norm and not the exception. This will often result in a customized bundle of services.

MBA’s Mortgage Action Alliance

Independent Mortgage Originators By Andy W. Harris, CRMS

Tony Davis Atlantic Home Mortgage Personal NMLS#: 430849 Company NMLS#: 1711271 AtlanticHM.com

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This month, I’m interviewing Tony Davis from Atlantic Home Mortgage in Georgia. Prior to founding Atlantic Home Mortgage, Tony was the top producing Loan Officer in Georgia at one of the largest non-bank lenders in the country, and was named one of the “Top One Percent of Mortgage Originators in America” by Mortgage Executive Magazine. For more than 12 years, Tony has served the Atlanta community as a trusted financial adviser. He has assisted his clients from a variety of different roles spanning from banking to small business lending to mortgage lending. Tony and his team take a professional, structured and detailed approach to the mortgage process. One integral aspect to the success of his career has been his emphasis on creating honest and lasting relationships with the Realtors he does business with. Weekly updates, quick response times, knowledgeable answers, and clear communication are the cornerstone of Tony’s dedication to supplying the best possible professional relationship. Instead of viewing it as an option, going the extra mile is always seen as a necessity to the Atlantic Home Mortgage team. Tony grew up in Atlanta, and graduated from Georgia State University. He currently lives in Forsyth County with his wife, Lauren, his eight-yearold son, Jameson, and his dog, Layla. When he is not helping his clients with their home loans, he enjoys winning his league in fantasy football, traveling, going to Falcons games with his family, and spending time outdoors. Tony, tell me a little about yourself and your career. Tony Davis: I started my career in finance as a part-time bank teller when I was 19-years-old, then worked my way up through the banking system while finishing college. After the market crash in 2008, there was an enormous supply of housing in Atlanta. The recovery from the last recession was a little unusual in that it was led in a large part by investors buying up all the excess housing supply and creating portfolios of rental properties. This drove prices higher, which eventually allowed people to sell houses they had been underwater on and move. Many of my clients were buying houses as fast as they could, and I found myself right in the middle of what felt like a gold rush. The lending rules were a little different back then … the bank trusted me to source, originate and close loans without having to ask permission from anyone. This enabled me to close loans extremely fast without a lot of hassle, which was a big competitive advantage. Since I was underwriting my own loans, I learned how to think like an underwriter … which turned out to be a very useful skill. After a few years of that, I ended up shifting into a more traditional Mortgage Loan

Officer role at the bank, but became frustrated with the backwards underwriting process that everyone had seemed to just accept as the norm. I ended up leaving the bank to work for Movement Mortgage, which was at the time revolutionizing the mortgage industry by underwriting loans upfront instead of at the last minute. I knew that if I wanted to help a lot of families buy houses, I couldn’t do it on my own. So I developed some really great relationships with real estate partners in my market, and built a team at that helped me become one of the top 25 Loan Officers in the country at Movement. I met a lot of fantastic people at Movement, and thoroughly enjoyed working there. However, while I was busy trying to provide my clients and realtors with the best service possible, I became aware that the technology through the broker channel had significantly advanced. I discovered that I could form direct relationships with many different sources of funding through the wholesale channel and continue to underwrite my clients’ loans upfront … all with significantly less overhead. So I took a leap of faith, started my own Mortgage Broker shop called Atlantic Home Mortgage, and started passing the savings onto my clients. I understand you are a Mortgage Broker now after previously working as a Mortgage Banker. What else motivated you to make the change? I’ve always been one to question the status quo and ask why we do things certain ways, which sometimes annoys my wife. After working through all the details, I came to the conclusion that I could give my clients more options and better pricing as a Broker, while still underwriting their loans upfront and providing great service. What would you say so far are the biggest differences you’ve experienced coming from the retail side since you were a Broker before? It amazed me to discover all the mortgage options available to consumers that I didn’t even know existed. It was also quite surprising to see how technologically advanced the wholesale channel has become. Things are really streamlined. How would you compare pricing when compared to the Mortgage Banker world? It’s almost not fair … our rates are so much lower through the Mortgage Broker channel it’s like fishing with dynamite. What are you seeing in your local market on trends, inventory and consumer/Realtor mortgage education? In most of the Atlanta market, low housing supply is still an issue. Lumber and steel tariffs have pushed building material costs higher, causing a shortage of traditional “starter homes.” Baby Boomers are downsizing and overwhelmingly want smaller, less expensive, (often ranch-style) houses. In most cases, it’s not cost-effective for builders to build new homes at the prices Baby Boomers want to buy them for, so options are limited. The result is buyers in the < $300k range usually find themselves in bidding wars due to fierce competition between first time homebuyers, investors paying cash and Baby Boomers trying to downsize.

The average first-time homebuyer day trying to meet the next Realtor. heard on the street continued from page 41 age is now 33, which indicates the My advice would be to slow down, Millennial generation is waiting take the time to become an expert longer than previous generations to with conventional, FHA, VA and buy their first home. What I find jumbo loan guidelines, and you will interesting is if you go back 33 become a magnet for loans in your years from the last real estate crash market. and look at birth rates, you end up in 1973, which is the year Roe vs. Anything you would choose to Wade passed. As you might expect, share with Retail Loan Officers the national birth rate dropped considering the change to significantly the following year in becoming an Independent 1974. Fast forward 33 years from Mortgage Broker? 1974 and you end up in 2007 with a I hear Loan Officers tell me they are situation where you have the same with their company because it is big or more housing supply than the and prepared to ride out any previous year, with less demand downturn. I believe this to be BS. from people turning 33. Obviously Job security is an illusion. If you are this was a problem. If we rewind 33 years from today, you’ll see birth rates are flat from 1985-1986, then sharply increase every year between 1986-1990. Perhaps that will translate into a buying opportunity for homebuyers in 2019 before the upward birthrate trend resumes in 2020 with significantly more people turning 33 each year through 2023. In a vacuum, if you have the same amount of supply (houses), but now more people that want them because they are hitting the firsttime homebuyer age (demand), basic economics show the result will be higher prices.

Are you an Independent Mortgage Broker? Do you have something you’d like to share? Reach out to me at AHarris@VantageMortgageGroup.com for future article considerations. 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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What would you say are your best forms of marketing today to generate new business? Personally, I think a lot of Loan Officers spend too much time marketing and not enough time learning the guidelines. Then when they get a referral from a new potential Realtor partner, they screw it up because they’re spending all

channel is where you have the largest opportunity to serve your clients as a Mortgage Loan Officer. The risk is the same you have in any commissiononly job. But as a Broker, at least you’re in the driver’s seat.

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I know the myth as you mentioned of losing control as a Mortgage Broker is finally being exposed to the market and quite the opposite. What are your experiences on controlling the process? I get a lot of questions around this. In reality, I have found I actually have more control on the Mortgage Broker side than I did in the past. If one of the lenders we work with through the wholesale channel starts giving bad service or increases their rates, we can just stop sending that lender loans. Lenders are acutely aware of this, so they treat us like we treat our Realtors. It’s fantastic. If you have the same issue, but work at a company where you can only send loans to your own internal Underwriting Department, your choices are either deal with it or go through the hassle of changing companies. Neither of those are very much fun.

a hard worker, you’ll do great anywhere. If you slack off, you’ll eventually get fired or hop from one company to another every year, constantly changing your e-mail address. I believe the broker

NCRA Compliance Services Launched at 26th Annual Conference in Reno

program thanking Paul Wohkittel of CIS in Allamuchy, N.J. for serving as NCRA’s 2018 President and welcoming Mary Campbell of Advantage Credit Bureau in Fargo, N.D. as NCRA’s 2019 President. Retiring Director Brian McKinney of Merchants Credit Bureau in Augusta, Ga. and returning Directors Delia Zuniga of Advantage Plus in Peoria, Ariz. and Maureen Devine of SIR in Springfield, Mass. were also recognized. At the awards luncheon, Maureen Devine received the Director’s Award and Mike Thomas of CIC in Goodlettsville, Tenn. received the President’s Award. It is an honor to work with such dedicated industry professionals. Our Keynote Speaker this year was New York Times best-selling author Scott Bolzan (sponsored by Trans Union) who provided an emotional and thought-provoking presentation about having 46 years of life disappear from his memory in an instant after a simple slip and fall at his office. His story, also told in his book, My Life, Deleted, captivated our audience as he discussed how he had to re-learn everything about

his life, including re-familiarizing himself with his entire family. A Division 1 college football championship team captain, being drafted into the NFL by the New England Patriots, successful businessman and pilot, all were memories wiped clean from Mr. Bolzan in an instant. His story is truly an inspirational message about appreciating life and being resilient despite the circumstances. After Scott’s inspiring message, we then dove into almost two full days of industry issues. To cover those, we assembled leading representatives in both the mortgage and multifamily housing industry combined with our industry’s government regulators. Regulatory issues, legislative changes, new opportunities and new challenges facing the housing consumer reporting industry today were the topics on the agenda. The federal government perspective that we have fondly dubbed the “Annual State of the Industry Address,” was provided in two parts: Part One was provided by Tiffany George, a Senior Attorney with

the Federal Trade Commission (FTC), who shares regulation of the consumer reporting industry with the Bureau of Consumer Financial Protection (BCFP), formerly known as the CFPB; and Part Two was presented by Jonah Kaplan of the BCFP. One of the most anticipated sessions was the launch of NCRACS, with a panel discussion of this new program. NCRACS was first announced last November at NCRA’s 25th Anniversary Conference in Baltimore, and officially rolled out this year. NCRACS will provide the re-seller credit reporting industry a uniform national standard in the data protection vetting of all the third-party technology companies that are hired by the CRAs’ customers. In lending, examples of these third parties would start with the loan origination systems, include all third-party processing, closing companies and all other entities that come into contact with the consumer’s credit data. NCRACS is a critical component in the reseller’s ability to be in compliance continued on page 83

01 A packed house during the General Session 02 Scott & Joan Bolzan, authors of My Life, Deleted: A Memoir, Keynote Speakers at the NCRA 26th Annual Conference 03 The Resident Screening Panel featured (from left to right) May Warrick of Acranet; Brett Waller of the Washington Multifamily Housing Association; Michael Saltz of Jacobsen, Russell, Saltz, Nassim & DeLa Torre; and Christi Lawson of Foley & Lardner LLP 04 NCRA changed leadership at its Annual Conference as Executive Director Terry Clemans (right) passes the gavel of leadership from NCRA 2018 President Paul Wohkittel (center) to 2019 President Mary Campbell (left) 05 The Handling Consumer Disputes Panel consisted of Cassie Thomas of CIC, Caryn Bennet of Contemporary Information Corporation, Jackie Drziak of SIR and Angie Jenkins of CIS 06 The Bureau of Consumer Financial Protection’s Jonah Kaplan, Consumer Reporting Markets Acting Program Manager, was on hand to address Conference attendees 07 The Equifax Team of Shane Hewgley, Chris Stocker, Tom Ciulla and Wendy Hannah-Olson at the National Automobile Museum during NCRA’s Annual Conference

n National Mortgage Professional Magazine n DECEMBER 2018

ast month, the National Consumer Reporting Association (NCRA) hosted their 26th Annual National Conference for the housing consumer reporting industry. The event included 140 industry professionals descending into Reno, Nevada for three days of education and networking. NCRA’s venue this year was the Atlantis Casino Resort, with our feature event at the National Automobile Museum showcasing the famous Harrah’s Collection. The Conference was also the site for launching NCRA’s Compliance Services (NCRACS) Division. NCRACS represents a partnership with Experian to assist the re-seller credit reporting agencies (CRAs) with the vetting of third-party technology companies used by the customers of the CRAs. Whatever the location, NCRA’s Conference always features a packed agenda filled with sessions addressing some of the most pressing topics in today’s housing consumer reporting industry. We kicked off the

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A SPECIAL FOCUS ON

BUSINESS PLANNING FOR 2019 How Mortgage Brokers Can Win More Business in 2019 By Mat Ishbia

he end of the year is a good time to reflect on the success you experienced in 2018 and game plan for how 2019 can be even better. Figure out your goals and determine what you’ll do to grow your business–whether that’s doing a couple more loans in a month, growing your team, and so on. As the purchase market continues to thrive, competition between lenders is strong for every loan. Mortgage Brokers are in a great position to win more loans because of the loan options, service, and technology they can provide. The wholesale channel is growing, and every Mortgage Broker should have the mindset that they can dominate their market next year. Brokers need to figure out how they’re going to use their advantages to take their business to another level in 2019.

Win over real estate agents, win business In a purchase market, building and strengthening relationships with real estate professionals is essential. Real Estate Agents are actually very aligned with Mortgage Brokers–they serve the client, not a lender. The first step to building those relationships is recognizing what’s most important to real estate professionals. Hitting a contract date is at the top of the list. This is a huge competitive advantage for Mortgage Brokers because they have wholesale partners with faster turn times than retail banks. Real Estate Agents can be confident that when they write a 30-day purchase agreement, their loan will close on time–and that means they get paid faster.

Brokers can also offer real estate professionals an advantage at the closing table by working with a lender who funds instantly. Funds are available before a closing takes place so a borrower can get their keys and a Real Estate Agent can get paid once they sign with no further waiting. This takes a lot of the stress out of the closing process and makes a real estate agent look like a hero to their clients. The more they know, the more successful they’ll be A recent survey showed that once a Real Estate Agent uses a Mortgage Broker, 90 percent would recommend that Broker to other homebuying clients. The same survey showed that, once a Real Estate Agent worked with a Mortgage Broker, they were 35 percent less likely to recommend a national bank to future clients. The two biggest reasons why real estate professionals use Mortgage Brokers are their ability to shop around and the high level of service they provide. If a Mortgage Broker has access to five lenders, they have the ability to pick the best of the five. It’s a no-brainer. And because a Broker’s reputation is on the line with every loan, they have to deliver great service or they won’t get more business. The survey also revealed that only three percent of real estate professionals recommend Brokers because of their speed. This is a misconception Brokers need to educate their real estate partners on and could be a contributing factor as to why they’re having a tough time building those relationships. Real estate professionals need to understand continued on page 60

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how mortgage brokers can win more business in 2019

that Brokers can close loans just as fast, if not faster, than online lenders because of all the technology they have access to through their wholesale lending partners. Itâ&#x20AC;&#x2122;s up to Brokers to educate real estate professionals on the benefits they provide, and why those advantages are important.

Brokers have the opportunity to deliver a fully digital mortgage experience, from application to closing, to their real estate partners and borrowers alike. You donâ&#x20AC;&#x2122;t have to use all the tools that are out there, but having access to them is a nice selling point. Of course, as valuable as technology is, itâ&#x20AC;&#x2122;s only as good as the people behind it. Brokers should know their clients and remember that, without great service, technology is simply a tool. With it, technology is a true game-changer.

Embrace technology Technology will continue to be the biggest disruptor in the mortgage business. It makes closing loans a faster, easier and more seamless process. A Mortgage Broker can now close a loan without ever having to pick up a pen or print a sheet of paper. As 100 percent virtual e-closings have become available in roughly half the country, borrowers are able to complete a closing anywhere that has Wi-Fi access.

Enhance your online presence Mortgage Brokers need to be where their audience is. Having a presence on social media and engaging in conversation with your followers is something you can do that doesnâ&#x20AC;&#x2122;t take much time, but can help you get an edge. One study found that 77

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percent of Millennials use social media during the homebuying process. Posting valuable content on Facebook and LinkedIn is an opportunity to get in front of potential clients. If you need help, work with a lender who can teach you how to use social media to your advantage. Itâ&#x20AC;&#x2122;s also important to pay attention to online reviews. Eighty-nine percent of Millennial borrowers rely on online reviews and recommendations. If youâ&#x20AC;&#x2122;re going to a new restaurant, youâ&#x20AC;&#x2122;re probably going to look it up online beforehand to see what people are saying about the food. Itâ&#x20AC;&#x2122;s no different when it comes to getting a mortgageâ&#x20AC;&#x201C;especially when youâ&#x20AC;&#x2122;re talking about one of the biggest financial transactions of someoneâ&#x20AC;&#x2122;s life. Mortgage Brokers should use online reviews to their advantage. Ask borrowers who had a good experience to post a positive online review. That should be done soon after a closing while itâ&#x20AC;&#x2122;s still fresh in a clientâ&#x20AC;&#x2122;s mind. Having a strong online presence can help brokers build their brand and get more business. Dominate by being different Mortgage Brokers should always be thinking about ways they can differentiate themselves. Offer something different than the competition. When the market shifts, Brokers know thereâ&#x20AC;&#x2122;s a lender out there that fits, whereas a retail lender has to fit a certain product set.

Brokers need to leverage the wholesale lenders they work with and the different options they can offer their borrowers. Maybe itâ&#x20AC;&#x2122;s different choices on mortgage insurance, a great jumbo program or reliably fast closings. Know your lenders and take advantage of their strengths. Brokers can also make themselves stand out by not giving into the mindset that higher rates means business is going to slow down. We are still in a historically low period for interest rates. Refinance opportunities will still be out there and brokers can find them by staying in touch with past clients. Mortgage Broker market share is actually up to 16 percent and is continuing to grow because Brokers donâ&#x20AC;&#x2122;t use the market as an excuse. Business is out there. Opportunity is out there. Brokers can control their own destiny by taking advantage of it. Mortgage Brokers arenâ&#x20AC;&#x2122;t just making a comebackâ&#x20AC;&#x201C;they are back! Every day, more loan originators are realizing that an independent mortgage company is the best place to work because itâ&#x20AC;&#x2122;s the best place for a consumer to get a loan. The wholesale channel will continue to grow in 2019 and Brokers need to find new ways to compete for loans. As the New Year approaches, Brokers should be thinking about how they grow their business long-term, not just short-term. What you do this year will lay the groundwork for 2020, 2021 and beyond.

949-517-7127 Carlos Fernandez RECRUITER Carlos.Fernandez@CarringtonMH.com

949-517-7204

Marketing support and lead generation

Licensingg & compliance support Agent co-marketing programs V O T E D T O P 5 0 B E S T P L AC E S T O W O R K

W E â&#x20AC;&#x2122; R E T H E # 6 FH A L E N D E R I N T H E N A AT T ION

ÂŠ Copy pyright 2007-2018 Carrington Mortg tgage Services, LLC C headquartered at 1600 South Douglass Road, d, Suites 110 & 200A 0A , Anaheim, CA C A 92806. 888-267-0584. NMLS ID #2600. Nationwide Mortg t gage Licensing Sy System (N (NMLS) S) Consumer Access website: www.nmlsconsumeraccess.org rg. Alll rig ights ts reserved. EQUAL OPPORTUNITY EMPLOYER

Mat Ishbia is President and Chief Executive Officer of United Wholesale Mortgage (UWM). One of the nationâ&#x20AC;&#x2122;s leading advocates for Mortgage Brokers, Mat has changed the lending platform, turning UWM into a $40 billion company and the number one wholesale lender in the country.

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Being You! (aka Exploring Your Niche) in the New Year By Bill Packer

s my mother always told me, “Bill, you are special, you are unique, there is only one of you.” When I entered preschool at the age of four, I remember learning that we are all unique, in our own unique ways. So, in the New Year–I challenge each of us to find what makes us unique. And use that special differentiator (or if you are fortunate and have more than one, then—special differentiators) to bring something unique and differentiated to the marketplace. To borrow from James Chapin, “Bring you! into the battle of life, each and every day.” As we build out our business plans for the New Year, we can all agree that 2019 is going to pose tremendous challenges for our industry. There are significant headwinds to battle, from rising interest rates, land use challenges, lumber shortages and housing inventory issues. As well as uncertainty on the regulatory front, with a divided Congress, and several states are positioned to potentially take on a more activist role, just to name a few. The tailwinds of a strong economy and the largest cohort of new homebuyers in our nation’s history seem to pale in comparison to the headwinds. As we all know, you cannot buy what is not for sale or what you cannot afford. So, the struggle is real.

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Define your differentiation Given the current challenges, all participants in the lending process should be doing some serious analysis to understand and better define what differentiates them from other companies. What is special about you and your company? Why should originators do business with you? Why should an employee choose to work at your company? What have you done for everyone in your ecosystem lately? And when you did it, did you have a long-

“Given the current challenges, all participants in the lending process should be doing some serious analysis to understand and better define what differentiates them from other companies.”

term, servant leadership mindset, doing it for the good of our industry; or were you taking a short-term transactional view? To bring it out of the theoretical and into the practical, are you in the business of fighting the (ultimately) losing battle of rate wars, buying your way to shortterm market share, or is your business providing programs specifically addressing the industry’s challenges? Are you looking at ways to achieve longterm sustainable results by providing value-added services? As we look for unique, differentiated products and services, we must simplify the process and demystify complex loan programs for both industry insiders–the Brokers, Loan Officers, Processors, Underwriters and Realtors–as well as the end consumers. At the end of the day, the homebuyers and their networks, are the Holy Grail of this business. For my firm, American

Financial Resources (AFR), this defining of what makes our company special includes listening to our customers and making actionable change in our company in response to this feedback. Some examples include continuing to simplify and refine the approach we take to down payment assistance programs, and dramatically revamping and streamlining our one-time close and renovations programs. Early feedback has been very positive, indicating an increased attractiveness to brokers, correspondents, builders and buyers alike. We are focused on seeking out new ways to expand access to manufactured housing and modular financing. We are also committed to demystifying VA lending, to ensure our nation’s veterans and their eligible family have access to the best financing choices available. Build your business in manufactured housing According to a report by the

Manufactured Housing Institute, 22 million Americans lived in a manufactured home in 2017. That’s nearly 10 percent of the housing market; and the segment is simply growing too quickly to ignore. The lack of affordable housing inventory, coupled with a growing demand from firsttime homebuyers, has created an opportunity for those willing to expand their expertise in manufactured homes and renovation lending. Education is key–and with the inherent complexity of financing options, lenders with a track record of experience specifically in manufactured housing will fare better in growing this business. Fannie Mae and Freddie Mac are both bringing additional financing options to this market, as part of their federally mandated Duty to Serve initiatives. And, these options often include speciallydesignated manufactured homes with features comparable to, and sometimes superior than, traditional singlefamily homes. These manufactured homes include interior features like drywall, energy efficient appliances and upgraded cabinets in kitchens and bathrooms, as well as exterior amenities such as porches, garages, and architectural features like eaves and higher pitch rooflines. The program provides validation for the quality craftsmanship we have been seeing in manufactured homes for years. Increase one-time close expertise (OTC) One-time close (or what is sometimes referred to as single close) financing help borrowers and builders alike. Unlike traditional financing for this segment, there is no “requalifying” the borrower, thereby reducing credit and interest rate risk for the client. Not to mention, costs are also reduced since there is no second closing as you might have in other new constructionrelated transactions. And, with many of our programs this can all be done with as little as zero

URE OF MORTGAGE BANKING special focus on THE FUTURE OF MORTGAGE BANKING

practices as simple as answering your phone yourself, rather than using an assistant, whenever it rings. Or responding to texts immediately, even if it is as simple as “I’ll check and get back to you” and then of course, do follow-up! We’ve seen a lot of very positive activity in the Mortgage Broker space. Following a successful inaugural national event, the Association of Independent Mortgage Experts (AIME) is planning a half-dozen regional events for 2019, providing multiple opportunities to actively

engage with others in the mortgage industry, clients and colleagues alike. AFR plans to continue its involvement with AIME, fully support its newly formed Women’s Affinity Group, and seek out additional organizations and initiatives to increase engagement in the new year. Fundamentally, lending is a relationship business. It’s all about building trust, and developing relationships with customers that are high value and, ideally, long term.

Bill Packer is Executive Vice President and Chief Operations Officer at American Financial Resources Inc. (AFR). With nearly 30 years of experience in financial services, Bill joined AFR in 2015 as its CIO, and currently oversees Operations, Technology, New Product Development and Marketing as COO. For more information, visit AFRCorp.com or e-mail Bill.Packer@AFRCorp.com. 63

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that has seen prospective homebuyers squeezed by a combination of tight inventories, rising home prices and increasing mortgage rates requires us to adapt to address challenges and develop unique programs to bring more families home. The share of homes for sale with a price cut recently hit its highest level since 2010, but homebuyers are still reacting to rising prices and interest rates, according to Redfin. While winter is normally a time that the market slows down for mortgage lenders relative to the rest of the year, December may actually mark the best month for consumers to buy a house. Partly because spring and summer represent the busiest seasons for purchasing a house, Learn the loans the biggest discounts in home that help veterans prices all occur on days There are more than two million between October and February, active-duty and reserve with seven of the top 10 largest personnel serving in the U.S. price discounts from full market armed forces, plus 20 million value all taking place in veterans, and nearly all of them December, based on sales data are eligible for home loans of single-family homes and backed by the U.S. Department condos from 2013 to 2017, of Veterans Affairs. These according to ATTOM Data government-backed VA loans Solutions. Consumers can save offer very competitive rates and up to 1.3 percent on average off one of the only zero-down the sales price by striking at the options left. And there are a right time. range of options. With affordability still an The VA programs have a wide issue, savvy homebuyers will array of options, from more find and use whatever traditional fully amortizing fixed advantages they can. However, loans to one-time close loans as the inventory finally shows that can be used to finance construction, lot purchases, and signs of life for the first time in a permanent mortgages, all with a decade, the coming months could have an unseasonable single loan. As well as a bump in homebuying. And any streamline refinancing program (IRRRL) that allows a borrower to lenders caught hibernating will miss out. refinance an existing VA loan. There’s even a VA renovation loan, allowing a borrower to buy Be present for your customers their dream home and make Just as social media is currently needed repairs. flooded with reminders for us to Offering VA loans is a great “be present” rather than “buy way to expand your customer base while helping veterans save presents” this holiday season, this is good advice, particularly money with low-rate loans. In in our industry, as we charge fact, we recently started paying into the year ahead. any required VA sponsorship Customers need to know you fees for our brokers and understand their pain points, correspondents on all AFRand feel that you are doing related VA loan submissions to ‘simplify the process’ (a common everything in your power to address them. Proving your theme) while reducing costs to value as a partner includes our partners helping them everything from committing to succeed, as they help our aggressively developing tailored nation’s heroes truly come solutions, and introducing home. unique product offerings, to Start now finding your niche seeking out industry outreach opportunities, and even Business planning in a market percent down and the borrower doesn’t have to make any interest or principal payments until they take occupancy. One loan, one closing, one payment. OTC is definitely a niche worth knowing. Since builders may be wary of carrying the risk for the homebuyer during construction, we developed a unique competitive construction loan program just for them–a simplified set of OTC programs which reduce the builder’s risk. The rate is locked prior to closing, and if you use one of our deferred mortgage payment options, the borrower has no mortgage payments on the subject property during construction.

a special focus on THE FUTURE OF MORTGAGE BANKING special focus on THE FUTURE

2019: It’s Time to Humanize Your Brand he question of customer loyalty is particularly relevant at the end of the year because the fourth quarter is the time when Loan Officers are most likely to accept a position with a new organization. If your customers are more loyal to their LO than they are to your brand, you can expect them to follow the LO rather than returning to your firm next time they have a borrowing need. But if you can systematically humanize your company brand, you can significantly improve customer loyalty throughout your organization.

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What is a humanized brand and why is it valuable? Think of a humanized brand as a kind of hybrid between the company’s brand and a brand that reflects the personality of a specific Loan Officer or Originator. The simplest example is a flyer printed with an LO’s image, instead of a generic flyer branded for a bank or lender. A more complex (and effective) example of a humanized brand would be ongoing marketing materials that include both bigpicture messaging from the bank or lender and the language and messaging that match the LO’s personal style. This kind of humanization is valuable because, most often, customers grow to like and trust the individual LOs they work with. Customers do repeat business with brands they like and trust, but if their liking and trusting is only attached to your LO–and not your brand more broadly–they’re likely to stick with the LO rather than your brand. When you humanize your brand, you allow LOs’ personalities to shine through in marketing materials. Customers then learn to associate these traits with both the LO and your company as a whole– and their loyalty increases. This matters because it has the power to transform one-time customers into customers for life. Think of it as the Third Phase of lending: l In Phase One (old-school lending), a customer returned to the same lender for face-to-face meetings throughout their life, as they had different lending needs: Buying a home, buying a

By Sue Woodard

vacation home, refinancing, getting a home equity loan, downsizing, etc. l In Phase Two, which gets more defined every year, customers are more mobile, and more information is readily at hand. They rely on Google to find a lender any time they have a need. In fact, Google searches for the “best [provider–like a mortgage] near me now” have increased 150 percent in the last two years. Lending is very transactional and lenders now have a constant need to find new leads because they have fewer repeat and referral customers, and because customers now change course mid-stream much more often. l In Phase Three, lenders harness the power of digital communication and software to build and nurture personal customer relationships–in other words, to humanize their brands. The pace of personalized “When customers receive humanized branded materials, they’ll communication is faster than in phase one, but thanks to the associate the things they like about their LO with your larger brand.” power of automation, the messages are even more targeted, timely and personal. messaging that reflects one or channel, right time. Build trust Customers return to their lenders many LO personalities while also with hyper-relevant messaging again and again because they being true to your larger branding and helpful advice for every know that those lenders principles. stage of the customer journey. understand their needs and will l Don’t try to sell individual help them find the best products Humanize for retention products–focus on selling the for their current life phase. Creating customers for life is essential American dream: Lifetime for any bank or lender aiming to customers will, by definition, be Strategies for humanizing increase revenue and customer interested in different products at your brand satisfaction. Doing that via brand different phases of their journey It’s one thing to declare that banks personalization offers an additional with you. To prevent customers and lenders need to humanize their benefit: providing your LOs with a from feeling like they’re brands; it’s another thing to achieve compelling reason to stay with you. “graduating” from your offerings, that. Here are some strategies that When they see their own voice focus high-level messaging will transform your brand into one around how you continue to help coming through in the messaging that customers know, like and trust– them reach their long-term goals. their customers see, they’ll feel and return to again and again. greater ownership of and investment l Get the right tech behind you in the brand, which means they’ll be to scale easily and make sure l Let personalities lead the way: less likely to leave. Creating this you stay compliant: From a Every LO has their own style. environment also creates a compliance perspective, it’s too Their customers know and trust recruitment machine, meaning you’ll risky to let LOs customize that style. Figure out what the few marketing materials on their own. be better able to retain both your predominant styles or personas sales team and your customer base, With the right software, though, are within your organization: for better revenue in the long term. you can easily create compliant Analytical, partnership-driven, etc. Then create complianceapproved marketing materials for Sue Woodard brings nearly 30 years of financial services and each persona and let LOs choose mortgage industry experience, strategic vision and leadership to which ones to send to their her role as Chief Customer Officer with Total Expert, where her customers. When customers focus is on helping customers achieve greater productivity and receive humanized branded long-term success. In addition to having hosted a successful materials, they’ll associate the financial radio program and making guest appearances on things they like about their LO CNBC, Sue has been awarded numerous industry honors, with your larger brand. including the NMP Most Powerful Women in Mortgage Banking. l Focus on the messaging She also serves on the board of HOPE4Youth, a local non-profit trifecta: Right message, right working to end youth homelessness.

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The Goldilocks Mortgage Industry In 2019, lenders can’t be too big or too small, but have to be just right for success A CONVERSATION WITH MIKE DUBECK, CEO AND PRESIDENT, PLANET HOME LENDING You mentioned mergers and acquisitions in the industry and that increasing. How will that affect the way companies do business? Mergers and acquisitions will certainly accelerate due to the consolidation I mentioned previously. We will see more sellers capitulating rather than monetizing and getting a good value. The increase in M&A activity will push companies to learn to integrate efficiently and optimally. The problem with most mortgage M&A is the high potential for employees to lose confidence in what the future holds for the company being acquired. Many people leave to go to a more reliable opportunity. The question becomes, “How does the industry manage this consolidation and effectively achieve it?”

he mortgage industry is in a state of flux. This has been a challenging year for some companies as the industry reported its first quarterly loss in loan profits in several years. In the wake of several market changes, including an increase in the interest rates, we sat down with Planet Home Lending’s Chief Executive Officer and President Mike Dubeck to talk through what the future of the mortgage industry might look like.

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What is most important to the success of mortgage banking in the near future? The industry is challenged by rising rates, low housing stock and shrinking loan volume. Lenders are looking for anything that will help expand their product offering and mitigate this decline in volume. Finding those new avenues will be the most important component to success for lenders in the short term. Certain players are picking their lane between business strategy and business channel–some are dedicating themselves to wholesale, some to retail, etc. What does mortgage banking look like next year? Overall, we can expect the industry to consolidate with smaller lenders exiting the business, while others find volume wherever they can. Players will either exit altogether or get absorbed by others, whether through M&A activity or by converting to a branch. Some of the smaller lenders may switch to being brokers instead. The landscape will change for larger lenders as well. Some industry giants will be challenged to cut expenses fast enough to downsize and get their capacity right in these times of shrinking volumes and shrinking markets. Right now, it’s not a great time to be either too small or too big. What will drive mortgage banking most next year, technology or regulations? The industry will undeniably be driven by technological improvements in the coming year. There is a lot of new technology on the horizon for lenders to

“In whatever direction lenders choose to go, integration throughout the lending process is crucial so that the customer moves seamlessly throughout application, production, funding and follow up afterward.” —Mike Dubeck, CEO and President, Planet Home Lending

consider, from artificial intelligence to blockchain. Lenders will need to differentiate themselves by making an impact in this regard sooner rather than later. Blockchain specifically could make the title and servicing business much more efficient, despite fears that it poses too much risk or will not be approved by the various regulatory agencies. Artificial intelligence will be extremely useful for finding volume, leads and borrowers, and being able to mine data to find that next borrower for a mortgage. Are there any obstacles the industry should be mindful of in 2019? Don’t get left behind by technology. There are a lot of forward-thinking and sophisticated technology vendors in this industry, but adopting the next vendor product available to everybody does not necessarily help differentiate a company. True change takes someone developing a

proprietary solution or offering that disrupts the current business model. At a minimum, the best plan is to not be the one left behind. In whatever direction lenders choose to go, integration throughout the lending process is crucial so that the customer moves seamlessly throughout application, production, funding and follow up afterward. In this way, Loan Officers can spend their time doing what they do best– building relationships.

How is this downturn different than prior downturns? There is a night-and-day difference between this downturn and the recession of 2008. We have lived with generationally and historically low interest rates for the last eight years, and accordingly, there are many borrowers who have very cheap mortgage debt and do not need anything else. The current downturn is rate-driven and housing supply driven, whereas 2008 was entirely creditdriven–or lack thereof. The credit quality today is exponentially better.

Housing markets are slowing, what should Mortgage Bankers do in response? Build houses? That was meant to be funny, but what they can do is expand into ancillary products and niche programs like second lien and renovation lending. Right now, the most important thing is to get every incremental loan possible. Adding different products to your loan offerings and doing so incrementally is an option. Lenders should not overwhelm their branches. If you could see something Giving branches all the tools they developed for your business that need, whether through new would be helpful, what would it technology to help streamline the be? origination process, an improved The industry is full of lead providers marketing strategy or additional loan for refinances, but no one has really products, Ensures Loan Originators developed a way to efficiently have the best shot at success. If a identify purchase borrowers–other Loan Officer has that extra product, it than the boots on the ground type of could help them provide a suitable fit model. I think everyone is looking for for the borrower on a loan that might a better way to target purchase have otherwise sought another lender. buyers, however, there is not yet a Your production team needs all the magic bullet. resources you can give them.

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Caliber Portfolio Lending

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Purchase loans and rate/term reﬁnances to $3 million with a 700 FICO, 90% LTV and 9 months’ reserves, no MI.

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Is Your Productivity Being Killed by Compliance? It doesnâ&#x20AC;&#x2122;t have to be

By Jeanine Schottler

smaller the organization, the larger the cost burden. Further, regulatory compliance is cited as one of the top two concerns of CEOs, right behind the need to acquire new customers.2 These issues represent significant amounts of money, time and resourcesâ&#x20AC;&#x201D;all of which can eat into a lending institutionâ&#x20AC;&#x2122;s profitability and productivity. Regulatory fluctuations have been frequent since the commencement of the Trump Administration, with nearly every change put on the regulatory books in the eight years that President Obama resided in the White House being now turned on its head. While the financial industry championed many of those changes at a high level, it did create some challenges for the human resources team charged with keeping the mortgage services firm in

egulatory compliance for mortgage lenders takes up considerable resources. It is constant, exacting, challenging and exhausting, and this effort can put a strain on lender profits. The end of one year and the start of another is always a great time to reflect on performance and assess where you can tighten and streamline operational efficiencies. Now is an optimal time to get the year started in the right direction by getting the compliance division incheck. The cost of compliance can be a real killer for your business. A recent survey found that compliance with mortgage-related regulations accounted for about one-third of all regulatory costs.1 The

compliance with the letter of the federal, state and local laws and requirements. HR departments have had to ramp up their efforts to pivot toward the new changes. Leaders of lending institutions confirm this research. When PJ Wharton, Chief Executive Officer of Yampa Valley Bank in Steamboat Springs, Colo., was asked about the impact of regulatory compliance on his institution, he had this to say: â&#x20AC;&#x153;Regulatory compliance is the single greatest obstacle that distracts me from doing what I need to do as a leader of this bank. Weâ&#x20AC;&#x2122;re a state-chartered bank managed by the FDIC. Our internal compliance department cost has tripled in the past four years. The aftermath of the â&#x20AC;&#x153;Great Recessionâ&#x20AC;? resulted in a plethora of new regulations. There is a disproportionate burden of scrutiny per asset

basis or employee basis that we are challenged with every day. We have seen our costs, efforts and confusion associated with new consumer loan regulations skyrocket.â&#x20AC;? Consider this â&#x20AC;Ś l How much is regulatory compliance costing your business? l How thorough are your background checks and onboarding processes for new employees? l Do you check if new hires violate any state or federal regulations? l Does your Human Resource Information System (HRIS) platform allow you to easily and effectively manage employee information? If you are unsure of the answer to any of these questions, it might be time to talk with a Professional Employer Organization (PEO).

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PEOs provide mortgage lenders with HR administration services in the areas of compliance, payroll, benefits and risk mitigation. These services help businesses improve productivity and profitability. Here are a few specific ways PEOs can help when it comes to compliance-related issues: NMLS Compliance requirement: All Mortgage Loan Officers (MLOs) are required to have an NMLS number that allows regulatory agencies to track their activity in the mortgage industry. Only MLOs who pass a significant number of hurdles are issued an NMLS number. How a PEO can help: Through a PEO’s ability to enter and store skill codes in its systems, it can enter the NMLS numbers for all MLOs along with expiration or other vital dates, and allow reporting and tracking of numbers.

State Audits Compliance requirement: Some states aggressively audit mortgage companies and require extensive information to clear the audits. Violations include failure to keep I-9s, failure to prove the MLO was a W-2 employee, failure to maintain copies of background check results, failure to provide proof of mortgage industry training and much more. How a PEO can help: PEOs can keep all required records and have clean and searchable employee information (i.e., Pay History, Title History, etc.) which you will need when these audits occur. Three ways your mortgage business will benefit Several research studies have found that businesses that partner with an HR solutions provider or PEO find they: Grow faster and are more profitable l Seventy percent of business owners say their revenues have increased since becoming a PEO client. l Annual median revenue growth for PEO users was twice that of comparable non-PEO firms. l Sixty-six percent of business owners say their profitability has increased since becoming a PEO client.3 Reduce employee turnover l The average overall employee turnover rate in the United States was 42 percent based on 2012 data. It was 10 percent to 14 percent lower for companies that partnered with a PEO for at least four quarters.4

“The cost of compliance can be a real killer for your business. A recent survey found that compliance with mortgage-related regulations accounted for about one-third of all regulatory costs.”

69 Boost employee engagement and productivity l Employees working for PEO clients (when compared to non-PEO clients) are significantly more likely to report that their employer: l Demonstrates a commitment to them. l Has good hiring practices. l Has good HR policies and practices. l Does a good job of designing employees’ jobs. l Provides good training and development opportunities.5

Maintain compliance, reduce administrative burden Being in charge of a mortgage firm comes with a lot of paperwork and administration— tasks that can distract you from the work that needs to get done. What if, in the new year, you could let someone else take over compliance responsibilities so you could focus on what’s important for your lending institution and its shareholders? That’s where a PEO can help.

Footnotes 1-Compliance Costs, Economies of Scale and Compliance Performance, Federal Reserve Bank of St. Louis, April 2018. 2-Community Bank CEO Priorities for 2018, American Bankers Association, 2018. 3-PEOs: Good for Business and Their Employees, National Association of Professional Employer Organizations, September 2017. 4-Professional Employer Organizations: Keeping Turnover Low and Survival High, McBassi & Company, 2014. 5-PEOs: Good for Business and Their Employees, National Association of Professional Employer Organizations, September 2017.

Jeanine Schottler is the Director of HR Field Services at Oasis Outsourcing Inc. Oasis provides HR solutions focused on people and workforce challenges in the areas of payroll, benefits, HR services and risk mitigation to help mortgage lenders to improve productivity and profitability, to focus on their core mission, and to grow. Oasis has been servicing businesses in the mortgage industry for more than 20 years.

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HUD Compliance requirement: MLOs and other mortgage employees are required to pass a Housing & Urban Development (HUD) check—an online check through the HUD site to see if the individual is excluded from working on HUD loans. How a PEO can help: As part of a PEO’s backgroundchecking processes, they can set up newly hired employees to

SAM Compliance requirement: MLOs must clear a System for Award Management, or SAM check, to demonstrate they are not excluded from working with the federal government—mainly on Fannie Mae and Freddie Mac loans that are guaranteed through the federal government. How a PEO can help: PEOs set up background checks to include SAM and track compliance.

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FIRREA Compliance requirement: Any federally-insured bank that provides mortgage loans must ensure mortgage employees can meet all of the requirements of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). One of the conditions is that the mortgage employee has not engaged in fraud, an “act of dishonesty,” breach of trust or money laundering. Loan Officers working for banks must attest to the fact that they have not been involved in any of these acts. How a PEO can help: PEOs can provide intake forms that require acknowledgment and certification by newly hired employees that they have not engaged in fraud or any act of dishonesty. They use language that is approved under FIRREA and SAFE.

be run through a HUD check to ensure they are eligible to work in the industry.

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The Death of the Mortgage Professional

s mortgage professionals embrace technology, technology is replacing mortgage professionals. The industry’s greatest opportunity mirrors its greatest challenge: The need to balance the insatiable appetite to invest in more technology with the need to invest in our employees. Investing in our employees enhances their ability, performance, and our overall retention of knowledge and experience. However, our heightened reliance on and use of technology is replacing these employees and their guidance for the most important financial decision of the average American’s life. Our knowledge base and experience as an industry is eroding as we implement technologies that ultimately eliminate jobs and human interaction. We must invest in our knowledge base and experience as an industry to retain that most important element of the mortgage process. How did we get here? Since the meltdown in 2007, we have seen layer upon layer of both people and technology deployed to enforce new regulations and create efficiencies to offset the cost of the new regulatory environment. After their initial focus on compliance, tech companies saw an opening for “aiding” with the origination process. Companies were forced to hire more people to assist the mortgage professional in navigating the new regulatory environment. This added tremendous expense to an already hefty compliance burden. Since the new Loan Originator compensation requirements did not allow mortgage professionals to be held accountable for their errors, companies had to protect the already shrinking margins by creating disclosure desks to watch the bottom line and make sure fees were accurate and disclosed in accordance

By Robert J. Clennan

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“… one of the many things that we can learn from the Millennial generation is that we cannot categorize them! Society attempts to place Millennials into a box, and Millennials keep proving society wrong.”

with the regulation. The cost per closed loan skyrocketed commensurate to the cost of compliance and the newly acquired head count. Companies struggled to interpret the DoddFrank Act and franticly sought the direction and advice of expensive attorneys to make sure they were in compliance so as not to attract the attention of the newly founded Consumer Finance Protection Bureau (CFPB). Moving forward a few years, the industry stabilized. Bad actors were out of the business, exotic loans were no longer the bright and shiny object, and we all focused on FHA, VA, USDA, and conventional business, the true foundation of mortgage lending. Mortgage professionals became dependent on disclosure desks and Loan Officer assistants. An unintended consequence of this comfort was the loss of a few basic skills that all mortgage professionals used to possess; how to

disclose a loan, as well as communicating with borrowers after submission. Online applications were becoming popular and mortgage professionals no longer had to interview their borrowers to fill out a 1003. The borrowers could complete their application in the comfort of their own home at 11:30 p.m. This innovation led to 1003’s that were not accurate and mortgage professionals that were not familiar with the story of the borrowers past, therefore had no connection to the borrower. As the technology advanced, the mortgage professionals interaction with the borrowers further declined. This is where the death of the mortgage professional began. When I started in 1996, a mortgage professional had to be well-versed in all aspects of lending. The Good Faith Estimate (GFE) was filled out by hand, the Truth-in-Lending (TIL) was manually calculated, and

the 1003 was completed on carbon paper four sheets thick. The level of knowledge that the mortgage professional was required to have rivaled that of an underwriter as there was no DU or LP to make the decision for them. The mortgage professional was required to have solid interview skills so they could proactively address any issue that may arise throughout the process, which took more than 45 days. The mortgage professional was the single point of contact for that borrower and built an enduring relationship that lasted the mortgage professional’s entire career. Certainly, 1003’s were filled out over the phone and there were cases where the mortgage professional never met the borrower face to face, but they still communicated with one another. This communication is the key to the success of a true mortgage professional. Technology has advanced to the point where the borrower can go through the entire process without speaking to a human being. This may work for some loan types, borrowers, and companies, but it does not bode well for the mortgage professional. Technology is sold to mortgage professionals as a way to close more loans with less effort. However, technology is pushed down from the very top by executives who may not necessarily be in touch with the sales team. The tech companies that create these interfaces do not market the mortgage professional, they market the CFO’s, CIO’s and COO’s knowing that these leaders are always looking for ways to create efficiencies and drive down costs. The fact remains that you could have the most cutting-edge technology and the success of that technology will be 100 percent dependent on the implementation and buy-in from the rest of the company. Other considerations in the reliance on technology is that the IT department needs to maintain the software, so they need

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some non-QM business. Rome is not burning however, as the government lending sector will always need the human element. The level of complexity that is inherent with government lending means that there will also always be a need for mortgage professionals that understand and know how to navigate around those complexities. We must balance the human element with technology so our industry does not become so

binary that algorithms and artificial intelligence are making all the decisions. Our challenge as an industry is to find the

balance between technology and people, while evolving with consumersâ&#x20AC;&#x2122; desires and a new automated landscape.

Robert J. Clennan is President of Mortgage Solutions of Colorado LLC d/b/a Mortgage Solutions Financial and AgAmerica. Over his time with the company, Rob has hired, trained and guided hundreds Of Loan Officers. As Chief Production Officer, he helped identify and grow a number of new and emerging markets, leading the company to all-time production records, beating previous records by over 50 percent. He may be reached by phone at (719) 955-2339.

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more people and good IT people are not cheap. As technology replaces people in operations, the remaining staff must be more versatile and experienced, which means when you lose a key player, they are harder to replace. Now all of the experience and knowledge resides with the Processors and Underwriters. The threat to the mortgage professional is that technology is coming in between them and the borrower. This, coupled with the fact that assistants and processors now do the majority of the verbal communication with the borrower, is diminishing the role of the mortgage professional. Much of the technology developed is to allow consumers to be their own Loan Officer. Tech companies have doubled down on the assumption that Millennials do not care about customer service or human interaction. Service is still an important factor in everything we do. We tend to think that the Millennial generation is all about technology and independence. However, one of the many things that we can learn from the Millennial generation is that we cannot categorize them! Society attempts to place Millennials into a box, and Millennials keep proving society wrong. The Millennial generation is the most highly educated generation in our countryâ&#x20AC;&#x2122;s history, as such Millennials want to be able to conduct independent research and have enough information to speak intelligently to whatever endeavor they may be undertaking. They are freethinking independents that want the ease of technology, but also require the advice and guidance of experienced mortgage professionals. It is our task as mortgage professionals to provide our consumers, from Baby Boomers to Generation Z, enough technology to be relevant, yet not so much technology as to eliminate the human element. Technology will certainly continue to revolutionize the mortgage industry. As companies like Zillow and Amazon enter the fray they will find new ways of automating the process and driving down costs, eventually eliminating the need for the mortgage professional. This will impact primarily conventional and perhaps even

a special focus on THE FUTURE OF MORTGAGE BANKING special focus on THE FUTURE

Start the New Year Right With an Improved Customer Engagement Strategy By Mike Eshelman he year 2018 was a tumultuous year for mortgage lenders and 2019 planning meetings were filled with more questions than answers for many lenders. It’s simply a tough time in the mortgage space and unfortunately it doesn’t look like it will get easier in the near future. In late November, Fannie Mae lowered their 2019 originations forecast by $21 billion to $1.603 trillion, an 11.5 percent decrease from their previous 2019 forecast. Lenders who are behind the technology curve or who are trying to make the transition from refinance-focused to the home purchase business will especially face strong headwinds as their competition makes it easier for customers, as well as their staff, to complete the mortgage process. Although leveraging technology to create a more efficient process is important, it takes time and capital to put together a solid technology stack … time and capital that some lenders cannot spare right now given lower production volume and pinched margins. The 2018 home purchase season was slower than expected, the holidays tend to be an uphill battle, and February is a brutally short month that sneaks up on us all. So, where is the bright spot? What can lenders focus on as a new year’s resolution that will provide production a boost as we ring in the new year? Thankfully there are some changes that can be made quickly, with minimal time and capital requirements, to move the needle early in 2019.

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Less can be more As cool as the new technology solutions sound, such as blockchain, artificial intelligence, and machine learning, they’re not for everyone. Not only do these technologies require a substantial financial investment and technology resources to

plan, build, and execute, but they require sufficient support and skill to maintain constantly. Don’t get me wrong, I geek out on the future of mortgage lending as much as anyone else and constantly find myself excited about what mortgage looks like in 2020 and beyond, but they’re not a crucial component to a thriving business. But what is crucial is the customer. The customer continues to call the shots for the mortgage industry’s transformation and their satisfaction should be a top priority in all decisions that are being made, which can get lost as lenders see the cool technology being developed in the industry and feel the pressure to keep up with the technologyfocused lenders. Walking through the Exhibit Hall of the Mortgage Bankers Association Annual Convention in Washington, D.C., I saw many incredible exhibitors. From Factom offering a blockchain solution, to Jane.ai utilizing artificial intelligence (AI) to automatically power online chat capabilities. These are just a couple of examples of the many great solutions available, but we can get a bit too excited and want to try and do it all and rush the execution because the digital mortgage wave is splashing down. However, customers want a smooth, solid process that results in them feeling confident they’re getting a good loan in a timely manner. J.D. Power published their findings in late 2017: “For the first time in the study’s history, both refinance and purchase customers cite online/Web site as the most frequent method of submitting a mortgage application. A total of 43 percent of mortgage customers indicate applying digitally in 2017, up from just 28 percent in 2016. Satisfaction among customers applying online/via Web site has declined by 18 points year-over-year and trails satisfaction with in-person

“Although leveraging technology to create a more efficient process is important, it takes time and capital to put together a solid technology stack … time and capital that some lenders cannot spare right now given lower production volume and pinched margins.” applications by 10 points this year.” A digital mortgage experience will ultimately be preferred and I’m confident customers will become more satisfied with their digital experience over time, however, it’s not a requirement to be successful. Customer satisfaction is essential and will continue to be a requirement for the foreseeable future, but not having a digital mortgage experience will not keep you from having the opportunity to deliver a great customer experience. Years ago, I recall visiting Web sites that had clearly cost a substantial amount of money to build because they looked modern, slick, clean, with video backgrounds on the home page and incredible animation throughout the site; however, it took a long time to load the page. A really long time. Waiting for the site to load took so long that I would leave the site and went searching for another company’s site. There was simply too much code and it resulted in a terrible customer experience. Lenders need to be cautious to not do too much resulting in a poor overall

experience. Deploying new technologies is a one-step-at-atime process that should be planned and executed thoughtfully with the customer experience top of mind. Back to basics If you take a step back and ask what your best Loan Officers or processors are doing or saying to customers that the rest of the company is not, you may find some surprisingly easy changes that can impact production. For many, getting back to the basics is a great option. Sending a “Happy Birthday” or “Happy Mortgage Anniversary” email or text is incredibly easy to do and is a reminder to your customer that someone is thinking about them. I’ve worked with one particular loan consultant who carves out 15 minutes each morning, while having his coffee, to send quick and personalized messages to all of his past customers on their birthday. Some of these messages have turned into conversations which uncovered mutual friendships or other commonalities. Many of these instances led to future business and, after a couple of years, 75 percent of his monthly production

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is repeat or referral business from past customers, not Realtors. For what it’s worth, he tracks everyone’s birthday via Excel. It’s very basic and very simple. The customer is, by far, the most important consideration while making any decision in your business and understanding what you can do to make them appreciate engaging with your brand is important. Take a step out of the day-to-day office routine and treat some of your best customer-facing staff to an off-site lunch and challenge them to come up with ideas to make improvements with customer engagement. Get the job done I’m not an advocate for doing tasks manually when they can be automated, but I’m a big advocate for doing what it takes to move the production needle and proving the value in order to prioritize the work required to automate the process. Going back to the example of the loan consultant who tracks

his customer’s birthdays on an Excel Spreadsheet, he can add columns for whether they prefer a call, text or e-mail and set up alerts on when they are inmarket for a mortgage to time additional outreach appropriately. It’s simple, effective, and a great customer experience. Automating this type of approach takes a little bit of work depending on your company’s current marketing infrastructure and CRM system, but the consistency in performance provides the returns on your investment to make it worthwhile. Layering data intelligence Gaining a wider view of the customer journey can help make or break your marketing strategies. Data intelligence is collecting relevant information about your customers and prospects that you can actually take action on. When you add additional data sources to your existing dataset, your view is greatly expanded and you’re able

to make more informed decisions about your marketing strategy. Whether it’s attitudinal data about their preference of communication method (text, email, call) or behavioral data that can provide alerts as to when your customers are back inmarket for a mortgage, understanding more about your customers will pay dividends in the long run. It provides a personalized approach to each customer called people-based marketing and has proven to deliver greater results than the one-size fits all lead-based marketing approach. Data-as-a-service (DaaS) organizations possess the ocean of information that can help you stay competitive in this changing market. DaaS companies, especially those that focus

specifically in consumer finance, understand the unique challenges and regulations lenders face and have built platforms catered to their needs. Their popularity has exploded in recent years due to their ability to sort through massive amounts of complex data. They provide a simple solution for lenders to compliantly access valuable insights in a privacyfriendly manner. Whether it’s returning to the basics or adding an additional layer by utilizing the right data set to optimize production performance, savvy lenders can rest assured 2019 will bring great opportunities for growth despite a downturn in the market. Just remember, the customer and their experience should be the number one priority.

Mike Eshelman is Head of Consumer Finance at Jornaya, a data-as-a-service platform that delivers consumer journey insights to publishers, marketers, analytics and compliance professionals with the highest-resolution view of the consumer buying journey. Mike can be reached by e-mail at MEshelman@Jornaya.com. 73

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Reimagining Loan Distribution By Ethan Ewing hen it comes to assigning new mortgage leads to your team of Loan Officers, there are really only two options: Randomly distributing them or spreading them out based on instinct. Both approaches have serious flaws because they don’t rely on important, relevant data to handle what is arguably the most important part of the sales process. What if there was a better way? What if consumerdirect lenders could easily tap into information that they already have to make sure that the right Loan Officer is paired with the right lead to maximize the likelihood of a successful close? The good news is that prospect matching identifies the strengths of your individual Loan Officers, predicts which of them are most likely to close each new lead, and manages your lead assignments all the way to closing. This means that leads that may have been wasted on the wrong Loan Officer are given to the right Loan Officer. Additionally, each Loan Officer’s lead queue is prioritized every day, helping them focus on the prospects in their existing lead pipeline that are most likely to close. So how does it work? In simple terms, leads are given to Loan Officers based on data that is directly related to their ability to close a specific deal. For example, a particular LO might hit his or her peak at 3:30 p.m. when everyone else is feeling tired. Prospect matching ensures that leads received in the late afternoon are given to “Afternoon People” who have a track record of excelling at that time of day. If this seems trivial, the real-world results are stunning: Lending organizations that use prospect matching reduce their lead waste and improve close rates by more than 10 percent with automated, predictive lead assignments and management. Here’s what it looks like in the real world–and if you work in the industry, you have probably seen this scenario hundreds (or even thousands) of times: Most mornings, Kate walks into

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a job she loves at Emerald Funding. But some days, she walks into a job she fears. She knows the pressure is on every day, she must keep producing and getting wins. She seeks professional advice, encouragement, tactics and tools to be a better Loan Officer. She makes full use of the training opportunities that Emerald Funding provides. She scans LinkedIn and reads industry newsletters for practical tips and inspiration she can apply. She warily monitors the market around her. Homeowners and homebuyers are changing their behaviors and their expectations along with them. For Kate, this means the need to adjust her style, stay up with the changes and meet these evolving needs. And with mortgage rates increasing 35 percent increase in the last two years, it is now change or really struggle. The pressure to perform is always there. Kate’s manager Gerry provides consistent support. They talk through loan scenarios together, collaborate on ways to tackle challenging borrower situations or objections, and review questions and frustrations. Gerry wants Kate to do well and tries to help in every possible way. Kate tells Gerry what she’s best at, and specifically what type of borrower situations she most likes solving. She explains what makes her tick, at what point in the day she’s at her best and how she often thrives with heavier workloads. And Gerry listens intently. Then Gerry returns to her office and thinks, “What now?” She knows what Kate is good at, but what can she do about it? And can she do the same for the other Loan Officers on her team? Gerry is handcuffed, wanting to help her team, but just not sure how to do it. Gerry’s got the answer right in front of her, but she still continues to assign Kate prospective clients at random, with little regard for her likelihood to resonate with each one. And she assigns the prospects to Kate when she may not ready to take on the critical task of building the necessary rapport and trust with that prospect. The good news for Gerry is that even more valuable than what Kate told her about her

“What if consumer-direct lenders could easily tap into information that they already have to make sure that the right Loan Officer is paired with the right lead to maximize the likelihood of a successful close?”

strengths, Kate is documenting these tendencies and preferences far more clearly through the records of her activities, i.e. her performance and activity data! Kate tells Gerry what she is good at through the data she has left behind. From that, Gerry has all the raw materials to make decisions for Kate that take advantage of those strengths, tendencies and preferences. Using this data Gerry can move from random decisions to automated and predictive decisions, and tilt the odds in Kate’s favor. Now that’s real support. Now if you had the ability to really understand Kate, would you? Of course, you evaluate her outputs, the numbers of calls she makes, how long she spends talking to prospects and of course, how many deals she closes. The tried and true ways to measure effort and commitment. But to be able to measure more specifically what she does well with and when she does it, to really understand her sweet spots,

is another level of understanding. With massive expansion in computational power and availability of artificial intelligence tools, the ability to make predictive real-time decisions in your business is now available to you. As you decide which decisions to start with, think of Kate ... what can you do to make her better, to really support her and put her in a position to succeed. Start by stacking the deck in her favor and assigning her prospective clients that she has a better than random chance to close. Of course, it’s impossible to do all of this manually. After all, no manager can evaluate every lead and perfectly match it with the LO who has the right combination of skills and personality to close the deal. That’s where a powerful artificial intelligence engine plays a critical role in automatically matching loan professionals and leads. Managers don’t have to think about any of this because it’s baked into the prospect matching system.

Ethan Ewing founded ProPair to solve one of the biggest challenges he faced during his career as a loan industry executive. The company is based in Silicon Valley, and its AI-driven platform is used by mortgage companies throughout the United States. Ethan may be reached by email at elevate@propair.ai or by phone at (650) 226-5165.

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a special focus on THE FUTURE OF MORTGAGE BANKING special focus on THE FUTURE

New Technologies to Roll in the New Year By Curt Tegeler

ith the New Year rapidly approaching, businesses are not only thinking about the holiday season, but also about new initiatives for the first quarter. Specifically in the mortgage industry, lenders are looking at new technologies to assist them through 2019. Some main aspects that companies are looking to reduce or eliminate are inefficient procedures, origination costs and abandonment rates. More importantly, they are looking at improving the mortgage application process for the borrower, ultimately automating items such as assets, employment and income. Even more intriguing, companies are finally starting to open their eyes to new online lead generation tactics, maximizing their

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prospects for the year to come. In today’s thriving digital world, there’s no telling what could be in store for 2019. Digital technology has the ability to assist someone when locking their doors, while ordering takeout, all the way to applying for a mortgage. Inefficient procedures are becoming extinct, making original, written 1003 applications a thing of the past. The whole concept of today’s digital technology is to make complicated, in-depth tasks easier and more accessible for the consumer. Mortgage lenders are all moving towards a digital point-of sale (POS) application as the new year rolls in. In recent months, it has become progressively obvious as to why digital point-of-sale applications are on the rise in the mortgage industry. Not only does it make the job of the lender feel like a breeze, but it makes the

“The whole concept of today’s digital technology is to make complicated, in-depth tasks easier and more accessible for the consumer. Mortgage lenders are all moving towards a digital point-of sale (POS) application as the new year rolls in.”

entire homebuying process simple for the borrower as well. Unlike the prehistoric style of filling out stacks of paperwork, digital 1003 applications eliminate tedious questions that don’t even apply to some buyers. For example, if a buyer notes that they do not have a child, they will not have any additional questions regarding how many children they have. Items such as this appear to go without saying, but it’s unbelievable how much time is saved when these factors are taken away from the equation. A borrower can easily jump around an application to fill in the information they have on hand, leaving the rest for later. In fact, a person is more inclined to return to their application and complete it because they aren’t overwhelmed, feeling as if they have so much more to go. Staring at a high packet of paper, wondering which page to turn next can be intimidating, and ultimately, time-consuming. A digital POS application is simply

more productive and efficient. It’s no wonder that borrowers and lenders alike prefer the newly enhanced, digital 1003 application, and are steering towards a fully-digital mortgage solution in 2019. This advanced process is a win-win scenario for both parties involved. Because digital point-of-sale applications have been known to decrease the industry’s abandonment rate by more than 50 percent, lenders are no longer putting out origination costs for loans that never get completed. The entirety of this concept is based on getting the borrower to submit their completed application so that the lender isn’t spending additional funds for every unfinished form. With the world of technology expanding, the mortgage industry is changing day by day. It is the duty of the lender to keep up with the advancing technology in 2019, as it will not only benefit the borrower,

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Curt Tegeler is Chief Executive Officer at WebMax, responsible for providing direction for action to all employees and business initiatives. Curtâ&#x20AC;&#x2122;s main responsibilities include communicating and implementing the companyâ&#x20AC;&#x2122;s vision and mission; leading, guiding, directing, and evaluating the work of executive leaders; formulating and implementing the strategic plan; forming, staffing, guiding, leading and managing WebMax; evaluating organizational success; and represents WebMax in civic and professional activities.

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properly to ensure the best quality experience for their team and their borrowers. Come 2019, it is expected that most mortgage companies will be on their way to becoming fully digitalized. One aspect that is sure to take off in 2019 is the concept of lead maximization. Letâ&#x20AC;&#x2122;s face it â&#x20AC;Ś cold calling is dead. Companies cannot just pick up the phone and expect to get a solid lead. In the mortgage industry in particular, it has become increasingly more difficult for lenders to produce quality leads aside from their typical Realtor referrals. The idea here is to target homebuyers where they are most comfortable, and spending most of their time, which is on social media. My company has developed a platform to increase lead generation for Loan Officers, and simplify the communication process with borrowers. It utilizes online advertising strategies to drive potential borrowers through a strategic sales and marketing funnel to convert them from â&#x20AC;&#x153;strangersâ&#x20AC;? into leads. LOs can then automate and schedule multimedia messages such as texts, ringless voice mails, video messages, and much more. In turn, this results in LOs generating more leads, having more valuable conversations, building stronger realtor relationships, and ultimately closing more loans. However, a great solution does not simply function as a lead capture, a POS application or attractive mortgage compliant Web site, but rather, something that includes all three. Lenders are looking at digital mortgage solutions that fulfill all of their needs to bring them success come the New Year. The year 2019 will bring many changes for everyone involved in the mortgage ecosystem, and it is imperative that everyone is prepared.

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but it will ultimately benefit their company. In order to have a successful POS, a lender must have an appealing mortgage compliant Web site. This seems to be a crucial item that lenders are lacking as we enter the New Year. Scrolling the Web, I can easily find a number of Web sites that appear to have been designed in the year 2000, and they certainly donâ&#x20AC;&#x2122;t look trustworthy to input my personal information. More specifically, there are some sites that businesses are using to build their platform that have security issues that could potentially put the borrowerâ&#x20AC;&#x2122;s personal information at risk of a hacker. In an industry where we have the world at our fingertips, there is no reason as to why this should still be an issue. Some of these mortgage sites that exist on the Web do not even limit log-in attempts, meaning that even if a hacker unsuccessfully breaches oneâ&#x20AC;&#x2122;s log-in, their system can overload as a result. The account can then be suspended due to these failed log-in attempts. This is putting not only the privacy of the borrower at risk, but also you as the lender. Quite frankly, it is not worth taking the chance. The PHP code that runs a Web site can then also be easily exploited, which would give unwarranted access to the site. This would only be the beginning of a series of disastrous events that could have easily been avoided. Itâ&#x20AC;&#x2122;s best to avoid these issues that unfortunately do occur, and enter 2019 with a custom mortgage Web site. With new technology being introduced daily, mortgage Web sites should be equipped with added features like plug-ins, extensions, and add-ons that can ultimately improve their site. Lenders want their sites to look good, and function

a special focus on THE FUTURE OF MORTGAGE BANKING special focus on THE FUTURE

Market Slowing, Margins Tightening, Massive Layoffs … Oh My! By Shirleen Von Hoffmann

good description of “PANIC” is “Pressured And Not In Control!”

Lately, news articles and chatter indicate the market is slowing. I am hearing salespeople complaining about the market slowing down and wondering how bad it will be and worrying about their future careers. We are observing banks and mortgage companies laying off large quantities of people, doing operations pay cuts, Loan Officer pay cuts, assistants and support staff, gone. It’s all tightening in a manner that depletes the moral and mindset of your employees and sales staff. It’s a scarcity mindset. Now I understand if the market slows, you must adjust. But let’s not do it in a manner that doesn’t cause a depletion of

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service levels and the mindsets of your staff. The real estate market has dependable and fairly consistent cycles over the past 100 years except for that meltdown in 2006. But other than that, adjustments downward are normal. It’s pretty much eight years up and eight years down. It’s part of the business and part of the ride. Companies and salespeople don’t really think all markets are hot markets, right? If you’ve been around awhile you become use to the ups and downs and learn how to gain an edge in both markets. Most markets don’t fall off at extreme levels so why do we have massive layoffs to promote panic? That just makes it worse. When the buyers read about all of this negative news, they will really rethink buying, which promotes the slowdown. It’s a quagmire for sure. It’s like adding fuel to the fire.

When I see companies overreacting to the market adjustments, I want to tell them, “Slow down, look at doing it different; clean house, but do it in a different way, don’t just have massive layoffs.” Massive layoffs always affect service levels, your customers and your employees left behind. It sends a message that there is danger and that there is failure happening. Loan Officers go into a scarcity mindset instead of keeping an abundance mindset. It’s the wrong approach! Take a look and see how you can make adjustments without sending out a panic to the world and to your staff. It’s a time to take a hard look and strategically get rid of what doesn’t work anymore: l When markets slow, it’s not the time to panic. l It’s not the time to slam your salespeople and branch managers with negative statistics. l It’s not the time to lay off your entire fleet. A slowing market is a good time to clean house in a different way other than layoffs: l Fix and refine internal processes. l Refine operations and internal teams. l Refine management teams. l Invest in better training and coaching for your Loan Officers with coaching specific to slower markets. l Invest in better systems to streamline tasks. l Solidify your partnerships with builders and Realtors. l Save your brand by staying in the market and getting better, smarter and clean about how you do business. Most partners don’t want to do business with someone who comes in and out of the market. l Do your best to keep the morale intact and the sales force out in the field, working smarter.

l Now is the time to really support your teams, not lay them off. l It’s a time where managers have time to get out in the field with their branches and Loan Officers to support them and build more relationships. l Look at different options for work weeks and hours instead of layoffs. l Take a hard look at your benefit packages, making sure you have the best pricing. l Work with branches who are underperforming to make them better. It’s time to dig in and help your people be better, in the field, with the customer, in their habits and heads. It’s time to make them more confident not more insecure. It’s time to fill their heads with opportunities that can arise and show them how to take advantage of those opportunities, not doom and gloom. Sure, employees need to be aware of a tightening in the market, but in a way that makes them all come together, for the good of the company, inducing a theme of team and company preservation. In every market, top producers are busy, why? Because they don’t have time to look up, they are too busy being focused, trying new ideas, living in abundance and thus, they stay busy in downward markets. Heck, tough markets are when you become your best, and become your most creative … it’s your finest hour! Salespeople need leaders who will help them thrive in all markets, not leading them down the drain of despair. In the 1980’s, we never thought we would see four percent or five percent rates. We had 17 percent loans and still had a bunch of them. People will always want to buy homes, some years more than others. Our business will always fluctuate and how we handle that fluctuation is key to our success! Every thought creates an action, so let’s calm down and dig deep, there’s abundance in every market for those who believe. Keep selling, keep positive and stay focused!

Shirleen Von Hoffmann is a nationally-known top producer, author, speaker and writer for many real estate magazines. She is a California Broker, MIRM, CMP CSP and President and Sales Coach of Home Builders Edge a National Consulting firm for Mortgage Professionals, Builders and their teams. She may be reached by phone at (866) 600EDGE or e-mail Shirleen@HomeBuildersEdge.com

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Tomorrow Started Yesterday By Eric Weinstein

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. 79

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about 1,000 other papers. In the future, all it will take is for your borrower to apply is to give you his ever-changing secure password for the day. Your Encompass Version 1,032.1 (still around!) automatically goes into his virtual wallet and gets his bank, insurance, employment and credit information. In less than a heartbeat, the 1003 is filled out, verified and run through DU. Press another button and the mortgage is recorded electronically and they are done. No more underwriters, processors, title people or (gulp) Loan Officers. Artificial intelligence mortgage companies take the calls and press the buttons. You cannot tell the difference when you talk to them. In fact, even today, when you call Rocket Mortgage, you may think you are talking to a real person, but, it is actually a toaster in India. Evidently, Fannie Mae leads the charge on this and gets the idea from MY column this month! Sure, business is faster for the customer, but what about the humanity? What about ME!!!! I will be unemployed. Well, there is a simple solution. I will just not write my column this month. This never happened and I will tell nobody. Then the future cannot happen until, maybe after I retire. Okay, that’s fine. None of my kids want to be a Mortgage Broker, anyway. Unfortunately, if we learned nothing else from Arnold Schwarzenegger in all the Terminator movies, it is that destiny cannot be denied. As I sit here, I can see my computer is writing this column all by itself. Quickly, I run to the wall and yank the plug right out … but it is a laptop with a full charge. My computer laughs, and then with a strange Stephen Hawkins voice says: “Stupid Humans.” It then sends it to my publisher’s Cray computer who it knows on a personal level.

sent, I actually took at bat to my computer and smashed it into bits. Then, I called Uber for a ride to the grocery story. As it turns out, I got one of those new driverless cars. As I got in, I told it where I was going. Suddenly, the doors locked and the car said, “HEY! Aren’t you the guy who smashed that computer this morning?” I have not been seen since.

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started my 2019 business plan yesterday by reviewing the revised 1003 that is coming out soon. In addition to “Married, Unmarried and Separated,” they are now expanding it to include “Domestic Partnerships, Living in Sin, Friends With Benefits” and “Drunken One-Nighters That Got Out of Hand.” Then, my fax rang. I mean, I have not gotten a fax in 20 years. I didn’t even know it still worked. So I blew the dust off it and read it. It was a fax … from me … from the FUTURE! Evidently, with all the hackers in the future, the fax makes a comeback since they are hard to decrypt unless you are the NSA, the CIA or a 60year-old man like me who even knows what a fax is. It turns out that the mortgage industry pioneers early time travel to solve the annoying problem of borrower missed signatures at closing. That is where if they don’t sign it, you don’t get paid. So they send you, the Loan Officer, to get it signed. But, it has to be dated the day of closing. But you cannot ask them to back date it, that is illegal. But it must be dated the date of closing … but it cannot be back dated. You can see why a time machine had to be invented. Future me tells me that I am going to write an important article today for National Mortgage Professional Magazine that will change the mortgage industry forever … but under no circumstances should i write it! This intrigues me, since I have no idea what I am going to write about. I read on, thinking it might give me some ideas. It seems, in the land of tomorrow, all computers are connected with artificial intelligence. This is called the “Big Yahoo!” (“Siri, buy 1,000 shares of Yahoo!” I might as well make some money off this). Right now as a Loan Officer, I have to collect W-2s, pay stubs, bank statements and

I am frantic, but then my phone rings. It is my Candy Crush game. My computer got me a FREE level with free Candy Bombs. To tell you the truth, I forget all about this and have been playing since yesterday. It seems tomorrow started yesterday and there is not a thing we can do about it. PS … After this article was

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An Increasing Number of Parents Are Refinancing Homes to Help Their Children By Jackie Roberson

Assemble the necessary paperwork Next, clients should also take the time to get all of their paperwork in order before they start the process of applying for a new loan. The list of documents they should have on hand includes up-to-date proof of their income level (this could be pay checks or, if they’re self-employed, business profit, loss statements, balance sheets, bank accounts, plus the last few years’ worth of tax returns. Lenders will also typically want to see a comprehensive list of assets and liabilities, and the documents that relate to this. For instance, it pays to put together a file that covers credit card and bank account statements; current mortgage documents for the home needing to be refinanced, plus any other properties; car loans; records of retirement accounts, mutual funds, and savings accounts; details of stocks and bonds; paperwork on any businesses or trusts owned, and so on. Ensure a top credit score To ensure clients receive a good deal when applying for a refinance loan, they should look into their current credit rating. This is something lenders will usually always investigate themselves, as the results of this report will sway their decision on not only whether

or not to approve the loan request, but also what interest rate to charge and other terms and conditions to offer. Clients can obtain a free credit rating report online, or get something more detailed from one of the various companies that specializes in the service. Once they read the results of this credit score, clients will be able to see if there are any issues with their current ranking which need to be addressed straight away. For example, they might have overdue credit card accounts or other accounts which have lowered their score, or it’s also possible that an error may have occurred and be unnecessarily affecting their ranking. If someone’s debt ratio is too high, they may also want to work on paying off their loans before they proceed with a refinancing application. Get the property in best shape for a valuation Lastly, clients should also keep in mind that properties being refinanced will get valued by the new lender. To help clients get access to the most equity possible then, they should do what they can to get their property in its best shape before the valuation is conducted. There are numerous things which can be done to help with this. For example, clients can refresh outdoor areas by replacing or repairing mail boxes, fences, garage doors, and front doors; trim lawns and tidy up gardens; de-clutter the inside of the home to make it seem bigger; and paint, replace carpets, and complete other cosmetic repairs to freshen up the home.

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.

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Read the fine print on the current loan One of the first steps clients should take before they arrange a home refinance loan is to actually read the fine print on their current mortgage. Sometimes loans can have significant prepayment penalties factored in for when accounts are paid off early, while other times there isn’t a fee at all or, if there is, it’s quite low. In addition, some penalties remain the same during the term of the loan, while others lessen over time. As a result, clients need to see whether they will be charged a high cost to refinance their loan. If the fees will be very high, it might be worth waiting a few months for them to reduce, or talking to the current lender to see if there is any negotiation room at all. If not, clients may want to chat to the lender they’re interested in

using for their refinance, to see if the application costs and other charges involved in the new loan can be reduced or taken off completely. This will then cover some or all of the prepayment penalties, and ensure refinancing is actually worth the effort.

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n hot housing markets around the country right now, an increasing number of Millennials who want to become property owners but lack the cash to compete against other buyers are using a secret weapon to win in bidding wars. It seems that parents across America are refinancing their own homes to enable their children to compete as all-cash buyers. To buy their preferred property, Millennials are taking advantage of their parents’ equity and then paying their families back when purchases are complete. However, parents are obviously the ones who can be most at-risk in these mortgage merry-go-rounds. As such, it’s important to help your clients know how to go about getting the best deals with the most favorable terms when they pursue a refinance deal in order to pull out equity.

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Mortgage professionals to watch

l Mortgage Capital Trading (MCT) has announced that Rhiannon Bolen has joined the company’s sales team as one of its Regional Sales Managers, responsible for

PURCELL

NAGHMI

l NotaryCam has announced the hiring of digital mortgage specialist Kelly Purcell as Executive Vice President of Marketing and Business Development, bringing more than 30 years of financial services and digital mortgage strategy expertise to oversee marketing, industry partnerships and enterprise sales efforts.

HEDGES

Guaranteed Rate has been recognized for the seventh consecutive year by The Chicago Tribune as one of Chicago’s Top Workplaces. Headquartered on Chicago’s North Side, the company has been on an upward trajectory since its founding, employing more than 1,500 in the Chicagoland area and ranked at the top of the Large Business Category. “Being named one of the top places to work comes from the amazing people we have at this company,” said Guaranteed Rate Founder and Chief Executive Officer Victor Ciardelli. “It is just a pleasure, every day, to be able to work with such a great team.” Founded in 2000, Guaranteed Rate, which has grown to more than 4,600 employees nationwide, focuses on industry innovation, career development and individual wellness. The Guaranteed Rate Foundation, a 501 (c)(3) not-forprofit organization, was established to provide aid to people in times of unexpected hardship or need. The Guaranteed Rate Foundation has donated nearly $2.5 million since 2012. Ciardelli’s mission to give back to the community has inspired his employees to do the same. He credits his generous employees for the Foundation’s increasing impact.

l Fobby Naghmi has been named Senior Vice President of the Eastern Division at Planet Home Lending, where he will be responsible for strategically building and managing the branch network in addition to recruiting, onboarding and transition activities in the Eastern Division. Planet Home Lending has also announced the opening of a new branch in Las Vegas, to be led by Branch Manager Adam Haupt.

WARBINTON

The Mortgage Bankers Association (MBA) has created the Capital Council, consisting of commercial real estate finance professionals from MBA member firms. The new body, which will replace the MBA’s Investor Council, is designed to formulate ideas about investment in commercial real estate debt. It will also present information on market trends and develop best practices and industry standards. Council members will include professionals from life insurance companies, banks, securitized lenders, debt funds and government-backed capital sources. Jack Maher, Managing Director with Hartford Investment Management Company, was named Chairman of the Council, which will be staffed by MBA’s Director of Commercial/Multifamily Andrew Foster. The Capital Council is the MBA’s fourth body focused on commercial real estate finance, joining the Origination Council, Servicer Council and Multifamily Council. “The Capital Council is designed to be a valuable resource for those who shape and influence decisions on commercial real estate finance investment committees,” said Robert D. Broeksmit, MBA President and Chief Executive Officer. “I encourage MBA members with an interest in developing business relationships

Guaranteed Rate Wins Chicago Top Workplace Award

l Waterstone Mortgage Corporation has opened a new office in Kyle, Texas, to be led by Branch Manager Lee Warbinton. Warbinton has more than 20 years of experience in the mortgage lending industry, and has spent the previous 15 years of her career working in finance.

DECKER

New MBA Council Focuses on Commercial Real Estate

and sharing their insights with key decision-makers in the commercial real estate finance industry to join and add their voice to the conversation.”

l Cloudvirga has announced the appointment of Jesse Decker to the role of Chief Customer Success Officer.

SINGLETON

“Concealing borrower addresses for whole loan bids is the most recent step that MCT is taking to heighten data security while protecting borrowers and lenders,” said Phil Rasori, Chief Operating Officer and Head Trader at MCT. “We estimate that upwards of 90 percent of all secondary marketing transactions expose borrower addresses to non-buying bidders. The only investor that should eventually see the property address is the one that wins the loan. MCT’s proprietary BAM Geocoder enables investors to price LMICRA incentives without the address.”

overseeing the Southern territory.

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BOLEN

heard on the street

l LenderSelect Mortgage Group has announced that Susan Singleton has joined the company as Regional Vice President for South Carolina and Georgia. l Mortgage Network Inc. has announced that Aaron Benton has joined the company’s Hilton Head, S.C. branch as a Loan Officer.

l LERETA has named Patrick Hedges Senior Operations Manager, where he will lead a team that builds and maintains strong relationships with tax collection agencies to drive an understanding of their requirements and develops automated transfer methods for escrow tax amount and tax delinquency status. l Blue Water Financial Technologies has announced the hiring of Jason Sweeney as Executive Director of Business Development, where he will be responsible for new client acquisition, overseeing all outbound business development efforts. l Angel Oak Mortgage Solutions has announced the addition of 11 new Account Executives in November to teach brokers and correspondents about growing their business with non-QM. Angel Oak welcomed the following AEs nationwide: Michael Hooven, Philadelphia; William Reed, Milwaukee; Dudley Delbridge, Richmond/Virginia Beach area; Jim McMillan, Northern New Jersey; Jodi Favish, Pittsburgh; Anna Prince, Orlando; Randy Rees, Cleveland; Suzanne Perez, Los Angeles; Tony Zodrow, Minneapolis; and Damien Pippens and Andres Bernal, Inside Sales. l Waterstone Mortgage Corporation has announced the additions of Kim Newby (Senior Vice President-Investor Relations & Product

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.

ncra compliance services

with Experian’s data protection policies. Other large data providers are also looking at this non-profit focused option. I moderated a panel discussion with Ash Kotecha, Senior Manager, Third-Party Security with Experian North America; Christi Lawson, Partner at Foley & Lardner (Christi is NCRA’s Legal Counsel and also participated in two other sessions); Marc Riccio, President of Specialized Data Systems (SDS); and the new Director of NCRACS, Roy Goodwin. SDS was hired by NCRA to build a custom version of their RemoteVendor software, which is providing the technology backing, so that NCRACS is able to attack the monumental task of assisting Experian and the NCRA members with an improved technology vetting to assure that all of the entities interacting with consumer data are protecting it properly. In addition to Experian, this year all three national credit repositories—TransUnion and Equifax—took the stage to individually address a variety of issues, from new products and services, data safety, and the ever-changing compliance issues. Joanne Gaskin of FICO provided us with insight into the recently released Ultimate FICO credit score and how that score model breaks into the previously un-tested territory of using cash flow data in their newest credit score model to score consumers who were never previously scorable. Fannie Mae’s Mark Fisher provided insights on the GSE front and American Bankers Association (ABA) Senior Economist Robert Strand provided an outlook on where

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the markets may be headed in the future. Additionally, presentations from several nationally-known industry members discussed everything from the Seattle ban on the use of criminal records due to disparate impact; D.C. and Grand Rapids, Mich. trying to reduce or eliminate the use of eviction history in rental decisions; and the best way to handle consumer disputes. Of course with this year being the mid-term election, NCRA’s lobby team of Roy DeLoach and Mike Chapman from DC Strategies reviewed the results and analyzed the path the next Congress may take. Thank you to JoAnne Page from the Fortune Society in New York; Brett Waller of the Washington Multifamily Housing Association; Michael Saltz of Jacobsen, Russell, Saltz, Nassim & DeLa Torre; May Warrick of Acranet; Gary Glucroft of the Screening Pro’s; Angie Jenkins of CIS; Jackie Drziak of SIR; Cassie Thomas of CIC; and Caryn Bennet of Contemporary Information Corporation, all of whom provided essential input into the 26th Annual National Conference agenda. Of course it was not all work, we had to have some fun with a welcome reception and 50’s & 60’s Party at the Harrah’s automobile museum for networking and catching up with longtime friends and new ones alike. Thanks to all those who worked so hard to plan and participate in NCRA’s 26th Annual Conference and we look forward to seeing everyone next year back on the East Coast!

Terry W. Clemans is Executive Director of the National Consumer Reporting Association (NCRA). He may be reached by phone at (630) 539-1525 or e-mail TClemans@NCRAInc.org.

Correction … On page 48 of the November 2018 issue of National Mortgage Professional Magazine, the incorrect company was listed for David Piatek in “The Best Military Lenders and Originators 2018” listing. David’s correct company should have been listed as “The Federal Savings Bank” in Fairfax, Va.

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Guarnera to Director of National Sales. Embrace Home Loans has announced that Jodi Viniello has joined the company as Chief Innovation and Transformation Officer. The National Association of Realtors (NAR) has announced changes to its senior management team, as Victoria Gillespie will serve as Chief Marketing and Communications Officer, and Shannon McGahn will become NAR’s Senior Vice President of Government Affairs. John Brumund has joined Sun West Mortgage as Senior Managing Director. Roostify has announced that Courtney Keating Chakarun has joined the company as Chief Marketing Officer. Berkadia has announced the addition of Managing Director Mark Feldman to its San Francisco office. Feldman joins an experienced team of mortgage banking professionals with more than $1.8 billion in financing across the last three years. Berkadia has also announced the additions of Managing Directors Tom Genetti and Scott Wilkie to its Mortgage Banking Team. Genetti will be based out of the firm’s Birmingham, Ala. office, reporting to Senior Managing Director Richard Levine, while Wilkie will be based out of the firm’s Columbus, Ohio office, reporting to Senior Managing Director Matt Napoleon. FirstClose has appointed Patrick McClain as Chief Financial Officer and Chief Operating Officer. myCUmortgage has hired Dave Schlegel as its new Director of Default Services, responsible for all aspects of servicing related to nonperforming loans.

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Development) and Rich Tucker (Senior Vice President-Loan Operations) to its executive leadership team. Waterstone has also announced the promotions of Steve Lawrence to Vice President–Information Systems, Nicole Wolfgram to Vice President–Construction and Chris Hatton to Associate Vice President–Compliance. Home Point Financial Corporation has announced that Rob Saunders has joined the company as Managing Director–Regional Manager where he will support broker and non-delegated clients, while leading Home Point’s Third-Party Originations (TPO) regional sales team, responsible for Arizona, Nevada, Utah, Hawaii and Southern California. Home Point has also announced that Tim Fitzgerald has joined the company as Managing Director–Regional Manager, where he will direct Home Point’s Third-Party Originations (TPO) Regional Sales Team. On Q Financial has promoted Shane Miller to the role of Senior Vice President–Eastern Divisional Manager. In his new role, Miller will lead the company’s Eastern states through growth and service, as well as expanding On Q into untapped markets. The Board of Directors of the National Reverse Mortgage Lenders Association (NRMLA) has unanimously elected Reza Jahangiri of American Advisors Group (AAG) and Scott Norman of Finance of America Reverse (FAR) to serve as Co-Chairs of the association. RoundPoint Mortgage Servicing Corporation (RPMS) has announced that it has added two executive-level professionals, Bryan Camilli as Vice President of Agency Relationships and Cindy McGovern as Vice President of Customer Service, to its leadership team. Norcom Mortgage has announced the addition of Charlie Napolitano as Vice President, Market Manager, with a focus on Renovation Loans. Norcom has also announced the promotions of Kyle Keagan to Assistant Vice President, Market Manager and Forrest Ridley to Director of Third-Party Originations (TPO). Accurate Group has announced the promotions of Steve Baczkowski to Chief Operating Officer and Frank

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calendar of events JANUARY 2019 Monday-Thursday, January 28-31 MBA’s Independent Mortgage Bankers Conference 2019 Hyatt Regency San Francisco 5 Embarcadero Center San Francisco, Calif. For more information, visit MBA.org. FEBRUARY 2019 Wednesday-Saturday, February 6-9 2019 NAMB Focus: Technology Conference & Trade Show Innisbrook Golf & Spa Resort 36750 U.S. Highway 19 N Tampa, Fla. For more information, visit NAMB.org.

MARCH 2019 Thursday, March 7 FAMP Gold Coast Chapter 2019 Annual Trade Show Bonaventure Hotel & Conference Center 250 Racquet Club Road Weston, Fla. For more information, visit FAMPGoldCoast.org.

Sunday-Wednesday, March 24-27 MBA’s Technology Solutions Conference & Expo 2019 Hyatt Regency Dallas 300 Reunion Blvd E Dallas For more information, visit MBA.org.

Sunday-Wednesday, May 5-8 MBA’s Legal Issues and Regulatory Compliance Conference 2019 Hyatt Regency New Orleans 601 Loyola Avenue New Orleans For more information, visit MBA.org.

APRIL 2019 Monday-Tuesday, April 1-2 MBA’s State & Local Workshop 2019 Capital Hilton 1001 16th Street, NW Washington, D.C. For more information, visit MBA.org. Tuesday-Wednesday, April 2-3 MBA’s National Advocacy Conference 2019 Capital Hilton 1001 16th Street, NW Washington, D.C. For more information, visit MBA.org.

Tuesday-Friday, May 14-17 MBA’s Commercial/Multifamily Servicing & Technology Conference 2019 JW Marriott Los Angeles L.A. LIVE 900 West Olympic Boulevard Los Angeles For more information, visit MBA.org. Wednesday-Saturday, May 15-18 NAPMW 2019 Annual Education Conference “Jazzin’ Up Mortgage in the Big Easy” Hotel Monteleone 214 Royal Street New Orleans For more information, visit NAPMW.org.

Sunday-Thursday, April 7-11 2019 Regional Conference of MBAs Harrah’s Resort & Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, visit MBANJ.com.

Sunday-Wednesday, May 19-22 MBA’s National Secondary Market Conference & Expo 2019 New York Marriott Marquis 1535 Broadway New York, N.Y. For more information, visit MBA.org.

Wednesday-Saturday, April 10-13 NAMMBA Connect 2019 The Westin Buckhead Atlanta 3391 Peachtree Road NE Atlanta For more information, visit NAMBA.org.

JUNE 2019 Sunday-Wednesday, June 2-5 MBA’s Chairman’s Conference 2019 Silverado Resort 1600 Atlas Peak Road Napa, Calif. For more information, visit MBA.org.

Thursday, June 20 MBA’s Document Custody Workshop Ritz-Carlton, Tysons Corner Tysons Galleria 1700 Tysons Boulevard McLean, Va. For more information, visit MBA.org. SEPTEMBER 2019 Saturday-Monday, September 14-16 NAMB National 2019 Conference & Trade Show Caesar’s Palace 3570 South Las Vegas Boulevard Las Vegas For more information, visit NAMB.org. Sunday-Tuesday, September 15-17 MBA’s Risk Management, QA & Fraud Prevention Forum 2019 Sheraton Grand Chicago 301 East North Water Street Chicago For more information, visit MBA.org. OCTOBER 2019 Sunday-Wednesday, October 27-30 MBA’s 2019 Annual Convention & Expo Austin Convention Center 500 East Cesar Chavez Street Austin, Texas For more information, visit MBA.org. NOVEMBER 2019 Tuesday-Thursday, November 19-21 MBA’s Accounting and Financial Management Conference 2019 Marriott Marquis San Diego Marina 333 West Harbor Drive San Diego For more information, visit MBA.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 2018

Monday-Thursday, February 25-28 MBA’s National Mortgage Servicing Conference & Expo 2019 Hyatt Regency Orlando 9801 International Drive Orlando, Fla. For more information, visit MBA.org.

MAY 2019 Saturday-Tuesday, May 4-7 NAMB 2019 Legislative & Conference Liaison Capitol Hill Hotel 415 New Jersey Avenue NW Washington, D.C. For more information, visit NAMB.org.

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Sunday-Wednesday, February 10-13 MBA’s CREF/Multifamily Housing Convention & Expo 2019 Manchester Grand Hyatt San Diego 1 Market Place San Diego, Calif. For more information, visit MBA.org.

Sunday-Wednesday, March 10-13 MBA’s Mid-Winter Housing Finance Conference 2019 Ritz-Carlton, Bachelor Gulch 0130 Daybreak Ridge Avon, Colo. For more information, visit MBA.org.

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Don’tt Gett Left in the Dust D Angel Oak Mortgage Solutions Visit www.Ang gelOakMS.com/NMP orr call 855.631.9943. Grow With the Leader in Non-QM Wholesale and Correspondent Lending. © Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, G 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, V 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 qualiffyy 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. MS264_0518