National Mortgage Professional Magazine February 2019 by ambizmedia

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*Carrington Flexible Advantage (Non-QM) product requirements vary depending on the consumerâ&#x20AC;&#x2122;s credit grade, LTV, DTI, andFICO scores and may require reserves from 3 to 6 months. Ask your Account Executive for additional details and requirements. Not available in MA and ND. No cash out available in TX. **Carringtonâ&#x20AC;&#x2122;s Investor Advantage applies to non-owner occupied business purpose loans only. Loan-to-value, debt service ratios and state restrictions apply. Speak to your Account Executive for additional details and requirements. Does not include: Co-ops, condotels, manufactured, unique properties, mixed-use properties, leaseholds, rural properties, log homes, agriculturally zoned, properties that provide income to borrower, farms or hobby/ working farms, properties with oil, gas, or mineral rights, builder model leaseback, non-conforming zoning regulations that prohibit rebuilding, properties subject to rent control regulations. Not permitted: Gift funds, non-tradi-5&2) 74(305- 7 3 )17(3 2)2431 7(32-) 7524&'37%(&'7)7 #25-7*(5')(.7(315032437&(7134&207,&'3 7Ineligible states: MA and ND. NY: Loans require a minimum loan size of â&#x20AC;&#x153;conforming balance plus $1.â&#x20AC;? NY CEMA loans not permitted. ÂŠ 2007-2019 Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200A, Anaheim, CA 92806. 866-453-2400. NMLS ID 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access website: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745. CA87654321307/.7-,37+3*)(-'32-7&%7$#1523117"!3(15 ,-7#203(7-,37 ) 5%&(25)7 315032-5) 7 &(- ) 37632052 7 4- 7 37 7 7GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. MN87 ,5175172&-7)27& 3(7-&732-3(7 into an interest rate lock agreement under Minnesota Law. MO87 511&#(57 &'*)2.7 3 51-()-5&27 7 2 1-)-37& 4387 511&#(57 315032-5) 7 &(- ) 376&)27$(& 3(765432137 7 7 7 &3 763317 #''5- 7 "7 7NV: Mortgage Broker License 4068 (Residential Mortgage Lending). NJ: Licensed by the N.J. Department of Banking and Insurance. NY: Licensed Mortgage Bankerâ&#x20AC;&#x201D;NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. RI: Rhode Island Licensed Lender, Lender License 20112809LL. VA: NMLS ID 2600 (www.nmlsconsumeraccess.org). WA: Consumer Loan License CL-2600. Also licensed in AL, AK, AR, CO, CT, DE, DC, FL, HI, ID, IN, IA, KS, KY, LA, ME, MD, MI, MS, MT, NE, NH, NM, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, WV, WI and WY. NOTICE: All loans )(371#/ 34-7-&74(305- 7#203( (5-52 7)207*(&*3(-.7)**(&!) 7 #503 5231 7" 3(307 &)27*(&0#4-17').7!)(.7/.71-)-3 7 ,3(375172&7 #)()2-337-,)-7) 7/&((& 3(17 5 7 #) 5%. 7 31-(54-5&217').7)** . 7 ,5175172&-7)74&''5-'32-7-&7 320 7 3('1 74&205-5&21 7)207*(& ()'17)(371#/ 34-7 to change without notice. This information is for mortgage professionals only and is not intended for distribution to consumers. Carrington Mortgage Services, LLC is not acting on behalf of or at the direction of HUD/FHA or any government agency. All rights reserved.

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table of N A T I O N A L

30 NMP’s Legends of Lending: Class Valuation By Rick Grant

F E B R U A R Y

2019 Non-QM Lender Showcase

38 National Mortgage Professional Magazine Presents Its 2019 Non-QM Lender Showcase

2 0 1 9

M O R T G

V O L

A SPECIAL FOCUS ON “NON-QM: THE GROWING MARKET”

C N

Why You Should Be Doing Non-QM and How to Choose the Right Lender By Tom Hutchens ..................................................56

M C

Non-QMs … Getting to “Yes” in 2019 By Ray Brousseau ................60

H a

Innovative Loans Serve a Growing Niche of Borrowers By Rick Arvielo....................................................................................62

Is Non-QM the Future of Mortgage Lending? By Jeff Schaefer ......64

Non-QM Success Begins With Education … Starting With You By Raymond Eshaghian ......................................................................66

Not All Non-QM Loans Are Created Equal By Mike Derstine ..........68

Automation in the Non-QM Sector By Brooke Mulder ....................70

40 NMP Mortgage Professional of the Month: Bob Dougherty, Executive Vice President of Business Development, Calyx Software By Phil Hall

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

N i

Non-QM Lending Delivers Profits and Long-Term Satisfaction By Tom Hutchens ................................................................................8

The Elite Performer: Lift Yourself Up in a Down Market By Andy W. Harris, CRMS ....................................................................8

Recruiting, Training and Mentoring Corner: Finding Your Niche By Dave Hershman ............................................................................12

New Year Changes By Gavin T. Ales ................................................18 Business Planning for 2019: Baby Boomers to Millennials ............20

NAMB Perspective ............................................................................22

This Time We Will be Ready By Pam Marron....................................24 The Mortgage Godfather ... Change: History, the Future and You! By Ralph LoVuolo Sr. ..........................................................26

74 2019: The Year of the Wholesale Lender? By Brian Rieger & Robert Rubin

V I S I T Company

Web Site

O U R

A D Page

ACC Mortgage .................................................. weapproveloans.com ....................................................13 Angel Oak Mortgage Solutions ............................ angeloakms.com ..............................................Back Cover Brokers Compliance Group.................................. brokerscompliancegroup.com ..........................................59 Carrington Mortgage Services, LLC ...................... carringtonwholesale.com ....................................1, 27 & 35 Citadel Servicing Corporation .............................. citadelservicing.com ......................................................25 Deephaven Mortgage.......................................... deephavenmortgage.com ..............................................21

The

th i w eck

th i w k

DocMagic .......................................................... docmagic.com ................................................................9 FAMP ................................................................ fampgoldcoast.org ........................................................69

76 The Beckwith Blog … Digital Domination: Beyond a Social Experiment By Christine Beckwith

First National Bank of America............................ fnba.com/mortgagebrokers ..............................................5 Genworth Mortgage Insurance Corporation .......... pages.genworth.com/choose ..........................................19 Greenbox Loans, Inc........................................... greenboxloans.com ................................Inside Front Cover Lykken On Lending ............................................ lykkenonlending.com ....................................................48 MBANJ .............................................................. mbanj.com ..................................................................33 MBS Highway .................................................... mbshighway.com/MNN ..................................................49

of contents

R T G A G E

O L U M E

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

1 1

N U M B E R

Compliance Matters: Ability-to-Repay/Qualified Mortgages: New 2019 Thresholds By Jonathan Foxx ..........................................34 MBAâ&#x20AC;&#x2122;s Mortgage Action Alliance: A Message From MAA Chairman Jeffrey C. Taylor ..............................................................36 How to Use Non-QM Programs to Close More Loans and Finally Avoid Being Seen as Just a Head Of Lettuce By Brian Sacks ..................................................................................42 The NAPMW Report ..........................................................................46

NAMMBA Connect 2019....................................................................50 BrokerNATION: Debt Does Deals, Christopher Griffith By Andy W. Harris, CRMS ..................................................................54 Top Habits of the Most Successful Loan Officers By Joseph Massey..............................................................................72 Wishing for Problems? By Mark H. Jones ........................................78 NewDay USA: Lending With Purpose to Put Every U.S. Veteran in a Home ..........................................................................................80

COLUMNS New to Market ..................................................................................14 News Flash: February 2019 ..............................................................16 Heard on the Street ..........................................................................28 Outstanding Places to Work ............................................................84 NMP Calendar of Events ..................................................................85

The National Association of Minority Mortgage Bankers Association is seeking the Top 100 Minority or Women Mortgage Loan Originators to be included in the NAMMBA Top 100, based on production by units or total loan volume (dollar amount).

NMP Resource Registry....................................................................86

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

Web Site

Page

Mortgage News Network (MNN) .......................... mortgagenewsnetwork.com ....................................44 & 45 NAMB+ ............................................................ nambplus.com ..............................................................23 NAMMBA ..........................................................nammbaconnect.org ...................................................... 67 NAPMW ............................................................ napmw.org ............................................................32 & 83 NAWRB ............................................................ nawrb.com ....................................................................55 New American Funding ...................................... newamericanfunding.com ..............................................88 NMP U .............................................................. nmpucoaching.com ................................................17 & 71 NRMLA.............................................................. nrmlaonline.org ............................................................48

Nominees must represent minorities or be women who originate loans with an active NMLS number. Production by units or total loan volume (dollar amount) must be verified by letter by a sales manager or other responsible party. Submission will be reviewed and due diligence will be conducted on a percentage of all submissions. Inaccurate data provided will result in a company ban.

Paramount Residential Mortgage Group, Inc. ...... prmg.net ..................................15, 61 & Inside Back Cover Quicken Loan Mortgage Services.......................... qlmortgageservices.com/strongertogether ........................11

To submit your nomination, go to

REMN................................................................ remnwholesale.com ......................................................29

NMPMag.com/NAMMBA100

Ridgewood ........................................................ ridgewoodbank.com ......................................................64 Sharestates........................................................ sharestates.com ..............................................................7 TagQuest .......................................................... tagquest.com ................................................................63

Any questions? Call Jaclyn Leitermann at (516) 409-5555 x315.

FEBRUARY 2019 Volume 11 • Number 2

FROM THE

publisher’s desk

Where growth lives now Success in any industry involves converting what others see as risk into opportunity. It’s what we 1220 Wantagh Avenue • Wantagh, NY 11793-2202 do in the home finance industry, as every transaction carries with it some level of risk. Those who Phone: (516) 409-5555 • Fax: (516) 409-4600 understand risk best grow. Web site: NationalMortgageProfessional.com Professional Underwriters in our business are the gold standard for measuring that risk and STAFF Eric C. Peck Joel M. Berman determining whether it falls within the acceptable range for the Originator, investor and regulator. Editor-in-Chief Publisher - CEO (516) 409-5555, ext. 312 (516) 409-5555, ext. 310 That’s why it’s interesting to see more of them working to underwrite Non-QM loans. ericp@mortgagenewsnetwork.com joel@mortgagenewsnetwork.com As the industry battles falling loan volumes and works to generate the growth that sustains their Joey Arendt Beverly Bolnick companies, some are taking a closer look at the risk equation. Staying within the box created by Art Director VP-Sales & Marketing (516) 409-5555, ext. 323 (516) 409-5555, ext. 316 the requirements for a Qualifying Mortgage (QM) is making it difficult for some firms to achieve their joeya@mortgagenewsnetwork.com beverlyb@mortgagenewsnetwork.com growth goals. Scott Koondel Phil Hall VP of Operations Managing Editor One area that has proved to be fertile ground for growing mortgage origination shops is the non(516) 409-5555, ext. 324 (516) 409-5555, ext. 312 QM space. In this issue, we’ll take a closer look at the companies working here, the loan products scottk@mortgagenewsnetwork.com philh@mortgagenewsnetwork.com they are developing and marketing and the consumers that are finding non-QM the best or only Richard Zyta Francine Miller Social Media Ambassador Advertising Coordinator path to homeownership and The American Dream. (516) 409-5555 (516) 409-5555, ext. 301 richardz@mortgagenewsnetwork.com francinem@mortgagenewsnetwork.com Our intention is to bring you the non-QM market like no one else can. One way we’ll do that is Rick Grant Dylan Pollock with our first ever “Non-QM Lender Showcase,” our listing of the top firms operating in this space. Special Reports Editor Administrative Assistant This market is growing and lenders who want to grow their businesses this year are paying (570) 497-1026 (direct) (516) 409-5555, ext. 314 (516) 409-555, ext. 311 dylanp@mortgagenewsnetwork.com attention to it. rickg@mortgagenewsnetwork.com To help you with that, we bring you a number of excellent articles in this issue. Let’s start with ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact your strategy: Read “Why You Should Be Doing Non-QM and How to Choose the Right Lender,” VP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail beverlyb@mortgageby Tom Hutchens, Executive Vice President of Production at Angel Oak Mortgage Solutions, for a newsnetwork.com. great primer. ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck Then, move on to “Innovative Loans Serve a Growing Niche of Borrowers,” by Rick Arvielo, Chief at (516) 409-5555, ext. 312 or e-mail ericp@mortgagenewsnetwork.com. The deadline for submissions Executive Officer at New American Funding, and “Is Non-QM the Future of Mortgage Lending?” by is the first of the month prior to the target issue. Jeff Schaefer, Executive Vice President—National Sales at Verus Mortgage Capital. SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@mortgageLearn more by reading “Non-QM Success Begins With Education … Starting With You,” by newsnetwork.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. Raymond Eshaghian, President and Founder of Greenbox Loans. And so you can answer the tough Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the questions that are bound to come up when talking about these products, check out “Not All Nonauthors alone and do not imply the opinion or endorsement of Mortgage News Network Inc., or the offiQM Loans Are Created Equal,” by Mike Derstine, Chief Risk Officer at Genworth U.S. Mortgage 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) Insurance. and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, ARMCP and/or other state mortgage trade associations Technology is important here, too, but with some subtle differences, so be sure to read events, activities and/or publications is available on a non-discriminatory basis and does not reflect the “Automation in the Non-QM Sector,” by Brooke Mulder, Marketing & Communications Manager for endorsement of the product and/or services by Mortgage News Network Inc., NAMB, NAPMW, NCRA, and other state mortgage trade associations. MortgageHippo. National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, ARMCP and/or other state Then, you’ll be ready to get tactical, so don’t miss “Non-QMs … Getting to ‘Yes’ in 2019,” by mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content conRay Brousseau, President of Carrington Mortgage Services and get some great advice in “How to tained in Mortgage 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 artiUse Non-QM Programs to Close More Loans and Finally Avoid Being Seen as Just a Head Of cles, information or data. Lettuce,” by Brian Sacks. If you’re not already offering your borrowers non-QM loan products, this issue will get you ready to make that important transition. But that’s just part of what we bring you this month. As we enter the spring conference season, we bring you information on two important, upcoming conferences. We expect these to both be great shows and hope to see many of you at one or both of these events. The first is the upcoming NAMMBA CONNECT 2019 Conference, presented by the National Association of Minority Mortgage Bankers of America, set for April 24-27 at The Westin Buckhead in Atlanta. This is a great organization and its events are designed to provide training, education and professional development to anyone in the real estate finance industry. As you’ll find on its Web site, NAMMBA CONNECT is not just an event, it is an experience designed to connect you with industry stakeholders, worldclass trainers and peers from across the country. Find out more inside. The second event is the National Association of Professional Mortgage Women (NAPMW) 2019 Conference, coming up in May. This year’s event, “Jazzin’ up Mortgage in the Big Easy,” will take place May 15-18 at the Hotel Monteleone in New Orleans. Find out more in this issue. We’ll also be shining a bright light on some industry leaders this month. Rick Grant is back with another in-depth look at a Legend of Lending, this time, Class Valuation. And our NMP Mortgage Professional of the Month is Bob Dougherty, Executive Vice President of Business Development for Calyx Software. Phil Hall has Bob’s story. That would be enough to make for a great issue, but we’re not done yet. There are a few other pieces you won’t want to miss. Be sure to see our second installment of “The Beckwith Blog ... Digital Domination: Beyond a Social Experiment,” by Christine Beckwith, and “2019: The Year of the Wholesale Lender?” by Brian Rieger & Robert Rubin. Finally, Jonathan Foxx brings us a perfect piece for this issue with “Compliance Matters ... Ability-to-Repay/Qualified Mortgages: New 2019 Thresholds.” There is risk in everything we do in life, but it’s the people that take those risks that earn the rewards. Our hope is that this issue will empower you to continue to build your businesses and grow in the year ahead. Sincerely,

Joel M. Berman, Publisher-CEO Mortgage News Network Joel@MortgageNewsNetwork.com

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n FEBRUARY 2019

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

FEBRUARY 2019 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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APPLICATION + CREDIT + APPRA AISAL = FINANCING G

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IN THE R REAL ESTAT TE JUNGLE E

Non-QM Lending Delivers Profits and Long-Term Satisfaction By Tom Hutchens

FEBRUARY 2019 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

undreds of originators who specialize in nonQM mortgages have told me that they enjoy rewards of success that go way beyond excellent commission rates and the delight in mining a largely untapped market. Non-QM lending is a different ball game than the mass market, systematic practice of filling agency loan pipelines. Non-QM lending has always been a personal service driven, problem-solving business. Not surprisingly, many consumers crave human interaction in an era when online lenders and mega-banks automate mortgage financing, offering potential cost savings as the only benefit. For our diverse market economy, it’s great that both agency and non-QM products are available to meet the varied needs of consumers. If you are a Loan Officer who thrives on building relationships and nurturing worthwhile outcomes, you will experience enhanced personal satisfaction when you help people become homebuyers who are unable to qualify for agency loans. “It’s more interesting and enjoyable to represent people who have challenges to overcome and who really appreciate the effort I put in,” one California Originator told me. “It’s more stimulating and profitable when your customers need you to do more than just get the lowest rates and fees. NonQM borrowers are people who have been turned down by agency lenders. I share their incredible joy at being able to buy a home.” Non-QM customers often need more attention when considering their options and preparing documentation. Therefore, high-performing non-QM Originators are effective at earning trust and sustaining relationships with prospects over time. Many of our top producers rely on customer relationship management and marketing automation systems. These tools, generally costing less than $100 per month, enable Loan Officers to prioritize prospects, deliver valuable information and schedule appropriate, personal touch points throughout the sales cycle. Personal relationship strategies and tools are especially useful for non-QM specialists because their customers are more likely to refinance into a conventional loan within two years. The Loan Officers who stay in touch with all their previous customers have opportunities unavailable to agency lenders. To learn more, check out our recent Webinar, “Earn Residual Income in the Mortgage Industry,” at AngelOakMS.com/Earn-Residual-Income-in-the-mortgageindustry. My advice to Loan Officers on achieving success through personal relationships reflects our commitment at Angel Oak Mortgage Solutions to working cooperatively with brokers and originators. If you have not yet met your personal Angel Oak Account Executive, start that relationship now by calling (866) 837-6312 or learning 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

challenged the constitutionality of the CFPB’s leadership structure. “The case raises constitutional issues of major importance regarding the Consumer Financial Protection Bureau, an agency that wields massive power over the economic activities of the public and sets a dangerous precedent for unaccountable federal bureaucracy,” Sam Kazman, Competitive Enterprise Institute’s General Counsel, said in a statement. “But there are other pending lawsuits that raise these same issues, and we are hopeful the court will have another opportunity to review them.” Justice Brett Kavanaugh, the newest member of the high court, recused himself from the decision because he reviewed the case when he was on the District of Columbia Circuit and dissented from the court’s en banc ruling. PRMI Volunteers Lend a Hand to Habitat for Humanity Guatemala

As part of its continued commitment to improving local and global communities, Primary Residential Mortgage Inc. (PRMI) recently partnered with Habitat for Humanity on a service trip to Guatemala. The nationwide mortgage lender was privileged to send 30 representatives from PRMI Giving Network, the organization’s humanitarian initiative, as the first international team to assist in building “Valle de Las Flores” in Palin, Esquintla, a new community for survivors of the recent June 2018 Volcan de Fuego eruption. For one week, PRMI’s volunteers traded desks and computers for gloves and shovels, as they worked side-byside with Habitat’s team, local masons and survivors of the eruption. Together, they contributed to the construction of 24 homes and laid the foundation for a new community, offering disaster victims and their families

a place to heal and build hope for the future. “In spite of unimaginable tragedy, the community members from San Miguel Los Lotes welcomed us with open arms, displaying a spirit of resiliency I’ve rarely seen,” said PRMI President and Chief Executive Officer Dave Zitting. “Working with these incredible families was a life-changing experience for all of our volunteers, and we’re honored that Habitat for Humanity Guatemala invited PRMI to be part of their project in such a meaningful way.” Fuego is one of the most active volcanoes in Central America, and continues to experience small, daily outbursts. The severe eruption in June 2018, however, produced a fast-moving collection of hot ash, gasses and volcanic matter known as pyroclastic flow, which quickly devastated homes and lives, including many in the town of San Miguel Los Lotes. Though national and international response was quick and plentiful, much of that assistance has waned, leaving Habitat for Humanity Guatemala as one of the only remaining organizations with boots on the ground focused on helping survivors. “We are incredibly grateful for the team from PRMI and the support they offered during their recent visit,” said Michael Estill, Habitat for Humanity Guatemala’s Fuego Disaster Relief Project Manager. “Without help from our global and local partners, we wouldn’t be able to assist so many of these families in rebuilding their lives.” Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of: NMP News Flash column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

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n National Mortgage Professional Magazine n FEBRUARY 2019

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

new to market

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LodeStar Integrates Real Estate Taxes Into Closing Cost Solution

LodeStar Software Solutions has announced it has added national Real Estate Taxes into its closing cost data improve the accuracy of its loan estimates and provide better data to mortgage professionals and title agents. Lenders are able to obtain quotes instantly through Ellie Mae’s Encompass digital mortgage solution. “Real Estate Taxes has been one of the most requested data points from our clients,” said Jim Paolino, Chief Executive Officer of LodeStar. “Quoting Real Estate Taxes upfront for the Loan Estimate form has been a major pain point for lenders. Our secure, seamless integration with Encompass simplifies the manual fee-quoting process for the Loan Estimate and Closing Disclosure forms, so companies of all sizes can process mortgage loans faster and focus on growing their businesses. Ultimately, the winner is the consumer, who will have a much more realistic idea of the upfront and recurring fees that can expect to pay.” Real Estate Taxes are now live as an add on feature of LodeStar’s Closing Cost Calculator for quotes throughout the country. LodeStar’s quotes also include transfer taxes, municipal recording fees, title insurance premiums and settlement fees from title agents nationwide. ComplianceEase Launches DecisionMonitor Tool

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

ComplianceEase has announced that it has launched DecisionMonitor, a tool that helps lenders resolve common compliance issues more quickly, reducing Compliance Department backlogs and expenses, while accelerating loan decision-making. Used in conjunction with ComplianceAnalyzer with TRID Monitor, DecisionMonitor helps reduce costs by decreasing the number of failures that would typically be escalated to a lender’s Compliance Department. The system provides users with detailed instructions on how to resolve common issues in

ComplianceAnalyzer audit findings. DecisionMonitor can also identify change of circumstances issues, reducing the risk of refunds and buybacks. In addition, the system tracks all fees being charged and allows lenders to configure detailed monitoring. ComplianceEase works with each lender to analyze their audit data and identify their most frequent errors and then develops customized resolution responses. DecisionMonitor can be implemented on a turnkey basis usually within weeks and without internal IT involvement. “Today, all loans with a violation— big or small—get escalated to Compliance Departments, which are overburdened by a large backlog of time-consuming manual reviews,” said Sanjay Tibrewal, Vice President of Product Management at ComplianceEase. “In addition, resolution attempts are time consuming and not always consistent. To address these client pain points, we developed DecisionMonitor. This advance technology helps not only identify common errors, but also instructs the user on how to correct the defect in real-time—freeing up time for Compliance Departments to review more complicated issues.” Informative Research Adds CreditXpert Wayfinder to Its Offerings

Informative Research has added CreditXpert Wayfinder to their wideranging collection of products. With an improved algorithm and upgraded user interface, Wayfinder automatically identifies a step-bystep plan of actions a borrower can take to potentially increase his/her credit score. “We’re thrilled to be able to offer Wayfinder to our clients and add it to our solutions suite, replacing CreditXpert Essentials and joining Credit Assure and CreditXpert WhatIf Simulator,” said Renae Sherman, Vice President of Business Development for Informative Research. “Our partnership with CreditXpert has been a fruitful one and we’re happy that lenders can continue to benefit from it.” With Wayfinder, lenders can close more loans by helping borrowers manage their credit and qualify for better mortgage terms. Wayfinder also helps lenders lower rapid continued on page 55

SHINING THE LIGHT ON

NON-QM

L E N DI N G

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Deephaven Mortgage is shining the light on Non-QM lending by providing products speciﬁcally designed to address the needs of millions of borrowers who are unable to obtain a traditional mortgage. In return, this allows originators to expand their business by reaching out to a broader group of borrowers. Help shine the light on Non-QM for your potential borrowers. Contact us by visiting www.deephavenmortgage.com and selecting either Correspondent or Wholesale. We look forward to you getting in touch with us today! Deephaven Mortgage® LLC. All rights reserved. This material is intended solely for the use of licensed mortgage professionals. Distribution to consumers is strictly prohibited. Program and rates are subject to change without notice. Not available in all states. Terms subject to qualiﬁcation. For more information on Deephaven’s state licensing, visit the NMLS Consumer Access webpage at http:// nmlsconsumeraccess.org/. NMLS #958425

n National Mortgage Professional Magazine n FEBRUARY 2019

Millions of potential borrowers are locked out of today’s conventional mortgage market.

N A M B

P E R S P E C T I V E

A Message From NAMB Government Affairs Committee Chair Martin Pfeiffeneberger We are now in the cold snap of the winter, and as we all know, not a great time for the housing market in the northern and middle part of our country. The government, with its four-plus week shutdown, definitely hurt the economy, and I am sure the mortgage market where there is a high concentration of federal government workers, thus causing even a bigger slowdown. The shutdown also stopped the USDA program in its tracks, as there were no workers reviewing files. The turn times will be over a week once they return to work, thus costing consumers who have rate locks expiring. During the government shutdown, not much happened at the federal level. Everyone should be keeping an eye out on their respective state legislatures and regulators to see what is coming. I know in my home state of New York, we now have a new whistleblower law that we have to provide training to our employees on in the coming year. If you do not have a state association, but have some concerns, please let us know of any pending issues that we can help you review. Our regulatory team is reviewing the new HMDA disclosures with suggestions being presented to the Board in February to propose some changes. As the mortgage market shrinks, it is those who will continue to not only survive but prosper by embracing new technologies coming out (NAMB AI) and utilizing them and staying up on current affairs. These individuals will be our leaders into the next decade.

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Martin Pfeiffeneberger is NAMB Government Affairs Committee Chair and NAMB Director. He is also President/Owner of Latham, N.Y.-based Maple Tree Funding. He may be reached by e-mail at MartyP@NAMB.org.

NAMB Certification Committee Update By Linda McCoy, CRMS, CVLS

We are off to a great start this year. It seems that we have more and more interest in our certifications each month. NAMB held a sold-out class in Las Vegas at NAMB National last December, where we presented the first Certified Veterans Loan Specialist Certification (CVLS) course. This is not just a participation certification that has been presented in the past by some different groups. This VA class is one that is very detailed and goes deep into the process of what it takes to get a VA loan, along with many exceptions, guidelines and will give you a big advantage over the average Loan Officer. The CVLS course teaches VA tips that you have never heard of or thought about before, and was presented by Ken Bates, who was the author of this class for NAMB. Ken–or “Mr. VA Loan,” as we jokingly call him–retired as a Commander after 20 years in the Navy. He started as a Radar Intercept Officer (RIO) in the F-14 Tomcat, just like Goose in “Top Gun,” then going to U.S. Naval Test Pilot School (TPS), and finally, finishing his time as an Aeronautical Engineering Duty Officer (AEDO). After Ken’s 12 years of active duty, with three deployments and seven moves altogether, his naval career landed his family in San Diego, where he discovered his life’s passion–helping other military families use their VA loan benefit to build family financial security via purchasing the American dream–their own home. Ken stopped originating in 2016, but closed roughly $50 million a year in production in the years leading up to then, with 92 percent of that being VA loans. That focus brought Ken to be the Chair of the VA Committee for NAMB, and he is extremely active in improving the VA loan program via lobbying to Congress. Because of Ken’s ongoing commitment, the VA leadership often turns to him for analysis and input when new policies are being considered. NAMB’s CVLS class will help you get a lot more deals done because of the knowledge you will receive. We sold out the class again at NAMB Focus. We have had many call and e-mail asking, when the CVLS class will be available locally in their state. At this time, we are only offering this class at national NAMB events. Our next class will be held at the NAMB Legislative & Regulatory Conference in Washington, D.C. in May. We are always trying to do more for our members, so that you can see the value in being an NAMB member. Linda McCoy, CRMS, CVLS of Mobile, Ala.-based Mortgage Team 1 Inc. is a member of the NAMB Board of Directors, as well as NAMB Certification Committee Chair. She may be reached by e-mail at Linda.McCoy@NAMB.org.

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, Thanks to everyone who attended NAMB Focus earlier this month! The NAMB+ Board and I enjoyed meeting many of you and talking with you about all the added benefits of NAMB Membership that NAMB+ makes available to you. If you weren’t able to make it to NAMB Focus or you couldn’t connect with some of our incredible Endorsed Providers while you were there, don’t worry! In the coming weeks we will be rolling out a series of free Endorsed Provider webinars and product showcases where you’ll be able to see demos and ask our technology partners questions about industry-leading software options like the NAMB+ CRM powered by Pulse, the Lending Pad NAMB Brokers Edition, and the NAMB Marketplace by Lender Price. In addition, please keep an eye on your inbox and on this page in NMP

Magazine each month as we continue to introduce new Endorsed Providers that offer products and services designed to help you originate more loans and save you time and money! If you have any questions about NAMB+, about all the benefits of NAMB Membership, or about becoming a NAMB member so you can take advantage of the incredible benefits of membership, please feel free to reach out to me or visit NAMBplus.com. 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.

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. Sarma gives you access to their extensive resources including: merged reports from the three top credit bureaus, CreditXpert tools, AVM Reports, SocialValidate, TRV Verification, Interface with over 30 LOS, Fannie and Freddie connection, Verification of employment/deposit and much more.

If you want a social and mobile marketing strategy that gets noticed contact Social5 today for a FREE consultation and demo and to receive your NAMB member discount pricing 23

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. 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.

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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.

MassMutual Disability Income Through an arrangement with Massachusetts Mutual Life Insurance Company (MassMutual), NAMB members have an opportunity to apply for individual disability income insurance (DI) at discounted rates.

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

NationalMortgageProfessional.com

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.

What if you could supercharge those lagging leads? Thanks to the Pulse CRM, you can! Pulse will give you the tools to have your marketing done-for-you, ditch the spreadsheets and show your team how vital having an effective pipeline is. Learn more by visiting focusitinc.com.

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!

Addressing Post-Housing Crisis Issues

This Time We Will be Ready BY PAM MARRON

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hen the housing downturn started in 2007, it wasn’t the first time. We had experienced other short-lived market blips in the past, but usually for no longer than six to nine months. The housing market always leveled out and the mortgage business would go on as usual. But by 2008, many of us were nervously scouring our markets, checking to see if unusual downward equity trends were just local, just in our state or if this problem was national. Problems never experienced before were stumping many of us in the mortgage industry, as we waited for the housing downturn fever to break like it always had. But it didn’t. Many in the mortgage industry were personally affected or knew of friends and family close by and across the nation who were losing homes. Often, affected homeowners were also coping with a decrease in income at the same time, as companies tried to keep as many employees as possible by cutting wages for all. Initially, my young children saw the consequences of the housing crisis in other places on TV, but then started experiencing this firsthand when their friends at school were affected. Many of us were changing companies often not because we wanted to, but because mortgage businesses were closing their

doors left and right. One of the companies I went to was Michigan-based, a state that was experiencing a huge negative equity problem just like Florida where I live. I recall a dinner in Michigan with top executives where I brought up unique housing problems and possible resolutions, thinking these folks might be going through the same and could offer help. I was stunned when the Vice President stated I needed to go out and find better loans. Rebecca of SunnyBrook Farms had to take off the rose-colored glasses for the first time. Over the next 10 years, many issues that had never occurred before the 2008 housing crisis were uncovered, researched and resolutions were sought. Some of the issues were with credit hardwired into credit code not visible on the face of a credit report. Exhaustive measures were taken to collect consumer data for agencies that could help correct problems once they were uncovered. Stories of consumer hardship affected me the most. Though many stories had similarities such as job loss or wage decrease, divorce or death of a spouse, negative equity that prevented the sale of a home which then caused issues when a relocation for a job was needed, there was one occurrence that stood out in every case. Every affected consumer tried to hang on, wiping out assets and even retirement plans, before they sought help. All were hopeful that

the economic outlook of the country would get better, and they would surely get back on their feet. I also recall reaching out to mortgage colleagues for help. Though many wanted to help, they couldn’t. The financial stress of an almost overnight halt of business during this time brought many in the mortgage industry to their knees. Silver linings Compassion for consumers going through true hardship was often most apparent from those who had gone through a housing hardship of their own. Attention to detail of problems, especially the ones that weren’t visible on a first look, were attacked like a bulldog with a bone. Agencies, public officials and organizations that could help listened and they helped. Referrals to those who could dig deeper on solutions and alliances between people at

agencies who had never worked together before on a common interest came together. Solutions were found and allies from new sources were made. And assumptions made initially on housing crisis issues were often found to be a vastly different story after the final analysis of the housing crisis was done. Yes, it’s inevitable that we will experience a recession again. In many places, varied signs in the housing market are already showing. But this time will be different. This time, we have the knowledge of what to do based off past history and experience. We know what worked and what didn’t work. This time, we don’t need to helplessly standby and ignore problems hoping they will soon go away. This time, we will know what to do, where to go to get help and know of the resources that can help. This time, we will be ready. Stay tuned.

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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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 FEBRUARY 2019

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

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Change: the Futu ou’d better start learning … changing … reading … accepting … and becoming more pro-active! I actually came across a company that has no use for technology, basically because of the leadership. And some people in leadership positions just don’t belong there. And if YOU don’t accept change, you’re doomed to be finding a new job in another industry in the next 12 months, or less. I wrote a book last year, called Tomorrow and the lead chapter is about what you think and how you feel today and what you can expect to feel like tomorrow if you don’t change. I state, very forcefully, that you’re more than likely having a ton of negative feelings about your production, income, company, deal production, co-workers, boss and pretty much everything that surrounds you. I’m telling you right now, again, that if you don’t change what you’re doing, thinking, reading, and feeling, you’re not going to succeed beyond where you are now. To be more specific, you won’t do more than the average MLO is doing. Proven by statistics, the mortgage production of Loan Originators is about two to 2.5 closings per month. If that is what you want for your life’s work, then just skip the rest of this article, because no matter what I write, it’s pretty much a waste of your time. Additionally, it seems that no matter what any of the coaches, trainers and mentors do, if you don’t want to change, you’re not going to change. I read somewhere the other day something that I’ve been touting for many decades that no matter what a coach mentor does, if someone doesn’t want to change, it is a waste of time and effort to try to change them. It has been my exact experience for the last 50 years that that thought is absolutely correct. Now what do you think? What are your thoughts on that subject? Change is all around us, look at the auto industry, the

FEBRUARY 2019 n National Mortgage Professional Magazine n

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The

Mortgage

Godfather

e: History, ture and You! production of food, energy, robotics, artificial intelligence, quantum theory. Did you ever read that there is a possibility that there are other duplicate universes, maybe as many as 12? Here is an observation that Iâ&#x20AC;&#x2122;m trying to have you think about. It is not the first time that Iâ&#x20AC;&#x2122;ve posited this series of thoughts. However, after spending the first couple of weeks of the New Year being on the phone with many, many people in our industry, the change Iâ&#x20AC;&#x2122;m seeing is so negligible that it is just astounding. Most mortgage salespeople today sell the same thing, discuss the same issues, make the same presentations and then buy the same donuts and coffee. It is an awful thing to see. It is an awful thing to hear. Remember, Iâ&#x20AC;&#x2122;m in a private office that I rent from a Realtor here in South Florida. The conference area is just outside my door. Periodically, he allows people from various parts of the industry to come and make a presentation to his sales force. It is impossible for me not to hear what is being said by the presenters. And the main subjects are: l Programs â&#x20AC;Ś we have such a wonderful variety, like no other company youâ&#x20AC;&#x2122;ve ever heard of; l Service ... wait until you see how we take care of you; l Rates â&#x20AC;Ś if we were any lower weâ&#x20AC;&#x2122;d be through the floor. My goodness â&#x20AC;Ś doesnâ&#x20AC;&#x2122;t anyone have anything new to say? Yes, I DO! And Iâ&#x20AC;&#x2122;ve been saying it for years and Iâ&#x20AC;&#x2122;ll continue until I die. I almost thought that Frank Garay and Brian Stevens were going to address the issue on their daily show, The National Real Estate Post, but just as they seemed to be getting to the correct point, they veered off to the left and before I knew it, they were off in the same old direction. My position is so simple â&#x20AC;Ś we need to be looking at what we

you have learned all of these things, help them accomplish all of their challenges. What a true partnership is composed of is a free exchange of ideas. Concepts that help each other. So, as I wrap this up, write to me. Ask me for the script that you need to memorize so when you get that appointment and you go to see that professional Realtor, the one that actually does business, you can confidently show them ways to do more business and that youâ&#x20AC;&#x2122;ll help them do what it takes. Ask me for my list of IDEAS that you can discuss with these professionals. Absorb the philosophy Iâ&#x20AC;&#x2122;m encouraging you to do today. For if you donâ&#x20AC;&#x2122;t, youâ&#x20AC;&#x2122;ll still be doing two to 2.5 closings a month, or maybe youâ&#x20AC;&#x2122;ll no longer be in our industry â&#x20AC;Ś your choice.

BY RALPH LOVUOLO SR.

do with Realtors as a partnership of ideals and ideas. For those who take the real estate business seriously, we need to learn how to help them become better, more professional, more helpful to the public, more creative in their approach to the development of their business. Allow me some latitude here to help you see the point. First of all, why do Realtors do business with you? Is it your incredible rates, service, programs? Your sparkling personality? If you stop just for an hour and think about this with your peers, youâ&#x20AC;&#x2122;ll easily understand what Iâ&#x20AC;&#x2122;m about to impart to you. Number one, they do business with you because they trust you. The question/answer about the point you keep trying to make me believe is that they do business with you because they like you. That to me is a bunch of bunk. They do business with you because they trust you. They trust that youâ&#x20AC;&#x2122;ll do what you say youâ&#x20AC;&#x2122;ll do. And if you donâ&#x20AC;&#x2122;t do what you say you will do, theyâ&#x20AC;&#x2122;ll drop you and stop taking your calls. And because they are human beings, with egoâ&#x20AC;&#x2122;s that we have helped them develop over the past decades, they will continue to make you wonder if you are really worth what you get paid for bringing the money to the transaction that they depend so much for their living. Now what, I ask you to think, what is it that they need to trust about you? Think of the previous few sentences, realize they are human and youâ&#x20AC;&#x2122;ll see the psychology that Iâ&#x20AC;&#x2122;m asking you to look at, as it stares you right in your face. They do business with you because they trust you will not embarrass them. That you can be trusted to establish a relationship with THEIR buyer or seller and you will act as a professional at all times. And the fear that you have, based on the way youâ&#x20AC;&#x2122;ve been selling all these years is that most of you do not do what you say youâ&#x20AC;&#x2122;re going to do and donâ&#x20AC;&#x2122;t follow through and donâ&#x20AC;&#x2122;t appreciate the partnership that you want to have so desperately. It came up recently in a sales meeting with a group that Iâ&#x20AC;&#x2122;m coaching nearby my office. It took me two years

before they agreed that I was worth the money to have them coach their salespeople. But the first thing that came up in the first meeting from an MLO who has one year of experience, and Iâ&#x20AC;&#x2122;m quoting directly, â&#x20AC;&#x153;I donâ&#x20AC;&#x2122;t want to do business with Realtors because I donâ&#x20AC;&#x2122;t want to beg anyone to do business with me.â&#x20AC;? Now, the simple answer to the unasked question. Learn what their challenges are, learn their business, learn what they have to do to produce a buyer, learn what their habits are. And after

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.

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ÂŠ 2007-2019 Carrington Mortg t gage Servvices, LLC C headquartered at 1600 S. Doug uglass Rd., R Suites 110 & 200A, Anaheim, CA C A 92806. 888-267-0584. NMLS ID #2 #2600. Nationwide Mortg t gag age Licensing ng Sy System t (NMLS) S) Consumer Access website: www.nmlsconsumera access.org r g. All rig i g hts reserved. EQUAL OPPO ORTUNITY EMPLOYER

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.

United Wholesale Mortgage to Add 800-Plus New Hires in 2019

2018, a 41 percent increase from its previous record of $29.5 billion in 2017. New American Funding Takes Home Two NerdWallet “Best-Of” Awards and Honored by Better Business Bureau

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United Wholesale Mortgage (UWM) has announced that it has set its sights set on hiring more than 800 people in 2019. “UWM is hitting on all cylinders right now, and we expect to substantially grow in the next 12 to 18 months on our way to becoming the number one overall mortgage lender in America,” said Mat Ishbia, President and Chief Executive Officer of United Wholesale Mortgage. “There’s a lot of excitement at our company right now, and a lot of great people who enjoy being a part of a championship culture and striving to accomplish something special.” The latest growth boom at UWM is due to the growth of the Mortgage Broker channel and the majority of the mortgage market being purchase business, which has always been UWM’s specialty. UWM’s partnership tools, pricing, service and technology have all played a major role in UWM seeing significant growth in January. “We have almost 3,000 team members focused on helping hundreds of thousands of consumers get the best rate and a great deal on their mortgage, and we’re proud to partner with Independent Mortgage Brokers throughout America to help people achieve their dreams of homeownership,” Ishbia said. UWM closed a companyrecord $41.5 billion in loans in

In NerdWallet’s annual Best-Of Awards program, which highlights the top financial companies and products nationwide, New American Funding has been named a 2019 two-time winner, in the category of Best Mortgage Lender for Purchase Loans and Best Mortgage Lender for FHA Loans. “Being honored in NerdWallet’s Best-of Awards is a tremendous way to kick off 2019,” said Patty Arvielo, President of New American Funding. “We thank NerdWallet CEO Tim Chen and his editorial team for recognizing us as one of the top financial institutions that provide exemplary products and services. While it’s a thrill to win one of the top awards in the category of Best Mortgage Lender for Purchase Loans as well as Best Mortgage Lender for FHA Loans, we will continue to be forwardthinking and customer-focused.” This marks the fourth year NerdWallet has researched dozens of financial products across multiple verticals in order to help consumers make confident financial decisions. More than 40 of NerdWallet’s personal finance experts on its editorial team spent hundreds of hours researching and comparing to find the “Best of the Best” financial products for consumers in 2019. New American Funding

again made that list. New American Funding also received the exclusive Better Business Bureau (BBB) Torch Award for their solid commitment to ethics and trust in the marketplace. The Pacific Southwest Division of BBB includes businesses of varying sizes that service San Diego, Orange and Imperial Counties. “The Torch Awards have given us the opportunity to show the community our commitment to integrity and our customers,” said Rick Arvielo, Chief Executive Officer of New American Funding. “We have placed the highest priority on conducting business with fairness and honor and are extremely pleased the Torch Awards has recognized our efforts in this commitment.” The BBB Torch Awards for Ethics were established to recognize organizations where ethics and trust is at the forefront of their business. Companies are selected by an independent panel of volunteer community leaders based on criteria established by the Council of Better Business Bureau’s International Torch Award. The finalists were required to complete an evaluation to demonstrate their commitment to ethics in six categories: Leadership’s Commitment to Ethical Practices; Communication of Ethical Practices; Leadership Practices to Unify the Organization; Organizational Commitment to Performance Management Practices; Organizational Commitment to Ethical Human Resource Practices; and Organizational Commitment to the Community.

Angel Oak Completes Largest Non-QM Securitization in a Decade

Angel Oak Capital Advisors LLC has announced the completion of AOMT 2019-1, a $609 million securitization primarily composed of non-QM residential mortgages. The Atlanta-based company said this is the largest non-QM securitization of affiliated originator loans that has been completed since the 2008 economic meltdown. AOMT 2019-1 was backed almost entirely with loans originated by three of the company’s affiliated mortgage lenders: Angel Oak Mortgage Solutions LLC, Angel Oak Home Loans LLC and Angel Oak Prime Bridge LLC. The securitization consists of 1,752 loans with an average weighted credit score of 710 and an average loan amount is $348,000, with the majority of the loans issued in California, Florida and Georgia. The transaction is Angel Oak’s ninth and largest non-QM securitization, and it brings the company’s total issuance amount to $2.6 billion. “The size of this deal reflects our strong investor following and leadership in the non-QM market. Angel Oak’s vertically integrated issuer model uniquely positions us in the marketplace because, through our AOMT securitizations, we are able to provide investors with direct exposure to non-QM loans originated by our affiliated mortgage lenders,” said Sreeni

Prabhu, Angel Oak Co-Chief Executive Officer and Chief Investment Officer. Jet Direct Opens New Branch in Garden State

years, and I feel right at home here!” Better Mortgage Expands Into Four States

Better Mortgage, a New Yorkheadquartered digital lender, has expanded its services into Alaska, Kentucky, Oklahoma and West Virginia. The addition of the four states now brings Better Mortgage’s territory base to 30 states and the District of Columbia. The

company, which launched in 2016 and has originated more than $2 billion in home loans, plans to expand further this year. “At Better, we saw an opportunity to become a different kind of mortgage company - one that makes homeownership so simple it feels magical,” said Vishal Garg, Co-Founder and Chief Executive Officer. “Better transforms the entire mortgage process, making it a more affordable, fast and easy homebuying experience. We’re excited to kick-off 2019 with four continued on page 34

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Jet Direct Mortgage has announced the addition of a new branch office in Parsippany, N.J. to be run by veteran mortgage professionals Sean Brennan and Dale Gallant. Brennan and Gallant bring their entire team of Sales Managers, Loan Officers and Operations Staff to Jet Direct Mortgage as National VP’s of Sales. Brennan and Gallant both have more than 20 years of experience in all aspects of the industry and have managed mortgage companies of all sizes. “We’re excited and proud to have Dale, Sean and their team join Jet Direct,” said Jet Direct Mortgage Chief Operating Officer Peter Pescatore. “They embody the core values that Jet Direct stands for and provide a much needed presence in the area. Our New Jersey customers and business partners deserve the very best in service, knowledge, and innovation–and I’m confident that they will play a key role in making the home loan process simple for our customers and business partners As many in the mortgage industry are currently cutting back, Jet Direct Mortgage has sustained the market and continued to grow. We are very excited about the future of this location, as well as the continued growth at a national level.” To coincide with the arrival of Brennan and Gallant, Jet Direct has opened its new corporate hub in Parsippany, N.J. This location will serve as an extension of our corporate office in New York, with the purpose to grow and expand the company’s reach in New Jersey and beyond. “We are thrilled to be a part of Jet Direct Mortgage’s winning team,” said Brennan. “Over the past few years, we have been seeing and hearing great things about Jet Direct Mortgage as an organization– and since we’ve come on board, things have only exceeded our expectations. The amount of support from ownership, operations and even

marketing has been greater than anything I’ve experienced at any of the former lenders I’ve been associated with.” Gallant said, “My team and I are very excited to be a part of Jet Direct. This company’s forward thinking, extremely knowledgeable staff, excellent pricing and cutting-edge technology is what I strongly feel is needed in order to successfully navigate the future of this ever-changing industry. I have known COO Peter Pescatore and Chief Business Development Officer Shachar Rand personally for

national mortgage professional magazine’s

Legends of Lending Class Valuation By Rick Grant

uite often in this space, we focus your attention on a Mortgage Loan Originator that has stood the test of time and built a strong business that ultimately became an industry icon. We have brought you many such firms over the years. But as our business has become more complex, we find that focusing some attention on the strong vendor partners that Originators rely on to build their businesses makes good sense. A quick survey of the landscape reveals no such vendor more deserving than Troy, Mich.-based Class Valuation. Founded in 2009 as Class Appraisal and rebranded last year, the company doubled in size over the last 12 months, making it one of the fastestgrowing and largest AMCs in the industry. Today, the company serves many clients, including eight of the top 10 wholesale lenders with orders placed nationwide. Acquired by private equity firm Narrow Gauge Capital (NGC) last March and now under the leadership of former Accenture Senior Managing Director Michael Detwiler, the company is poised to go well beyond its AMC roots this year.

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Growing from strong roots When it acquired Class last year, Adam Doctoroff, a partner at NGC, said, “Class Appraisal ... offers the absolute best service model that we have seen in the appraisal management business.” That’s high praise, given the number of firms competing in the space, but Sarah White, who came aboard after the acquisition to head up the company’s Marketing Department, agrees. “Class has always had a really great team made up of the best people in the business,” White said. “The company has always been focused on providing superior customer service. I saw that in my first meetings with team members, before I even started here. That reputation has made the company into the successful business it is today.” In a previously published article in National Mortgage Professional Magazine, Chief Growth Officer Jonathan Tallinger echoed those remarks. “Our leadership has fostered a very good culture,” Tallinger said. “Our people like working here and engaging our appraisers. We have built great relationships with our appraiser partners.” As Tallinger described it, Class has found ways to provide incentives for just about any employee who wants to go above and beyond their job description, encouraging them to do what it takes to deliver quality and earn more money. The results have been impressive, pushing Class to the top of the AMC heap, which begs the question: Why would a company that has already achieved success want to risk going beyond that? New leadership, new direction When we spoke to Tallinger for our article last fall, he told us that Class had already doubled down on its commitment to building proprietary technology. At the time, it

“From the beginning, I intended for Class to be much more than just a provider of appraisal reports. While we do that very well and expect to continue to do so, change is coming to the real estate valuation space and Class will lead that change.”

“Our leadership has fostered a very good culture. Our people like working here and engaging our appraisers. We have built great relationships with our appraiser partners.” —Jonathan Tallinger, Chief Growth Officer, Class Valuation

—Michael Detwiler, Chief Executive Officer, Class Valuation

“We’ve been doing things in the same way for a long time in this business. Digital cameras and e-mail were the most recent big changes in the valuation space. That tells me that there is more room for innovation here than ever before.”

—Sarah White, Senior Vice President of Marketing, Class Valuation

—Scot Rose, Chief Innovation Officer, Class Valuation

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overall speed and quality. No one is asking for disruption for its own sake.” Opening the doors for change in the valuation space Disruption has been the goal of most of the new fintech firms, though few if any have as yet delivered it. What Detwiler is looking to lead is something different. To make it happen, he’s assembling a new team. Last October, the firm hired Gary Ferguson, a technology veteran with more than 15 years of software engineering experience in the mortgage space, to be the

new Chief Technology Officer. A month later, the company announced it had recruited Julie Jones, former member of Fannie Mae’s collateral policy and strategy team, to be the firm’s Senior Vice President of Valuation Transformation and Engagement. Scot Rose came on board last May, and last month, Class launched a new research and development center in the historic DC Building on 17th Street in Denver. When the new center was dedicated, Detwiler said, “The team we are assembling continued on page 32

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had not yet been made public that experienced mortgage technology executive Detwiler would take the helm. Detwiler founded Mortgage Cadence years before Accenture purchased the company and put him in charge of its global software operation. Detwiler is an equity partner in the group that purchased Class. While AMCs typically leverage software to fulfill their mission of managing the appraisal process for their client lenders, they haven’t previously been counted among the industry’s technology firms. Detwiler saw something more in Class and the space in which it operates. “From the beginning, I intended for Class to be much more than just a provider of appraisal reports,” Detwiler said. “While we do that very well and expect to continue to do so, change is coming to the real estate valuation space and Class will lead that change.” While Detwiler has written elsewhere about disruption, he was careful to point out that much of the purported change we hear about in the valuation space today is hype. Sure, we have automated valuation models (AVMs), machine learning and AI, but in reality, he says, very little has actually changed about the way the industry conducts business. Class Valuation’s Chief Innovation Officer Scot Rose agrees. “We’ve been doing things in the same way for a long time in this business,” Rose said. “Digital cameras and e-mail were the most recent big changes in the valuation space. That tells me that there is more room for innovation here than ever before.” Detwiler said, “Everyone is looking for change. But they’re looking for thoughtful change that minimizes risk while it improves

“The company has always been focused on providing superior customer service. I saw that in my first meetings with team members, before I even started here. That reputation has made the company into the successful business it is today.”

Legends Of Lending will focus on advancing our technology ecosystem to support our long-term goals. This ecosystem will be complemented by breakthrough technology solutions unlike anything the valuation space has seen before. Ultimately, we plan to create sustainable, longterm solutions for the ecosystem of vendors and lenders that will ensure homebuyer satisfaction. That’s a mission we will accomplish.” A focus on innovation But to say the company’s focus on innovation is something new may be overselling it a bit. For some time now, Class has invested in technology to connect seamlessly with its lender clients nationwide. It has worked to streamline its operations to speed up delivery of quality reports and improve customer satisfaction. Company executives admit that it wouldn’t have been possible for Class to grow as quickly as it has without great

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technology. According to the company, technology has been a major reason that its metrics have improved in every department. When we last spoke to Tallinger, he told us about the company’s interactive dashboard that provides detailed information about where the company is receiving orders and how it is performing across the entire country—in real-time. Class shares this information with its clients. That’s innovative, but where can the company take it from here? Detwiler has some ideas about this. When he says he wants Class to lead the change, he’s really talking about data. “The data set is going to change,” Detwiler said. “The writing is already on the wall for that. We want to help redefine this business thoughtfully, by taking into account the role of the appraiser and the role of technology, so that we can evolve how we see the collateral risk associated with a loan. That

Legends Of Lending

can only happen with better data and more thoughtful ways of collecting and recording that information.” Detwiler says the technology already exists to accomplish this, it just hasn’t been applied to the collateral valuation business yet. He gets excited when he talks about new ways to look at the value of residential properties, how moving away from the twodimensional view of the property will provide a more objective and concrete measure of worth, and how new tools like blockchain might one day hold all of the relevant data for a given property. “We want to improve the overall veracity of the collateral valuation business,” Detwiler said. “If you can truly capture the value of a property in a much more objective way, considering all of the factors that contribute to that value, then everyone involved in the transaction will benefit: The lender, buyer and seller.” But he said that contrary to what some may believe, the technology Class will bring to market will not act as a replacement for the professional fee appraiser. Rose agreed, “We don’t anticipate that the innovation and modernization of the valuation business will be a replacement for appraisers. Our goal is to work with our partners so they can move with the changes, be part of the future and remain

relevant versus being left behind.” A company on a mission White says that in the wake of the rebrand, Class Valuation’s mission has become much broader than in the past. In fact, it goes beyond the AMC business altogether. “Our mission statement now is to help our customers close more loans so they can help more borrowers realize their homeownership dreams,” White said. Isn’t that a lot to ask of a valuation provider, we asked? “I think it speaks to the empowerment of the lender, which is what we do,” White said. “And also to making sure that everything we do is focused on that idea of getting more borrowers into homes. That’s very important to us because it’s important to the lenders we serve.” Tallinger says the reaction from company clients has thus far been very good. “They are very interested in some of the ideas that we’re proactively bringing to them,” Tallinger said. “Everyone is looking for ways to get better at what they do, to find ways to increase efficiencies and contain costs. At the same time, with margins so tight, there seems to be less room for error in the current market. So building and maintaining that trust with our customers is more important than ever.”

Rick Grant is Special Reports Editor for National Mortgage Professional Magazine and Mortgage News Network. He may be reached by phone at (570) 497-1026 or e-mail RickG@MortgageNewsNetwork.com.

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heard on the street

additional states, bringing us closer to achieving our mission whether it’s for a first-time homebuyer or someone looking to refinance their home.” ClosingCorp Partners With ALTA Registry

continued from page 29

violations, uninsured losses and a negative customer experience,” said Bob Jennings, chief executive officer of ClosingCorp. “The ALTA Registry will help improve accuracy, efficiency and compliance for our clients throughout the mortgage process.” Civic Financial Announces Launch of CIVIC Multifamily

By Jonathan Foxx

Ability-to-Repay/Qualified Mortgages: New 2019 Thresholds

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Question The qualified mortgage is going to require changes to thresholds in 2019 due to inflation adjustments. This is important because our 34 underwriters want to calculate the applicable points and fees. What is the new ATR/QM rule for inflation in 2019? Answer A little history is in order. In January 2013, the Consumer Financial Protection Bureau (CFPB) issued final guidelines for the Ability-to-Repay (ATR) calculations on the limits of points and fees in order to ensure they reflect the requirements for a qualified mortgage (QM). A QM receives certain protections from liability under the ATR rule. The ATR/QM rule requires that the threshold amount be recalculated annually for inflation. The CFPB bases its adjustments on the Consumer Price Index for All Urban Consumers (CPI-U), published by the U.S. Bureau of Labor Statistics. Using CPI-U as the index, the threshold amounts for 2019 require a 2.5 percent increase. Therefore, commencing Jan. 1, 2019, for QMs the maximum thresholds for total points and fees are: l Three percent of the total loan amount for a loan greater than or equal to $107,747; l $3,232 for a loan amount greater than or equal to $64,648, but less than $107,747; l Five percent of the total loan amount for a loan greater than or equal to $21,549, but less than $64,648; l $1,077 for a loan amount greater than or equal to $13,468, but less than $21,549; and l Eight percent of the total loan amount for a loan amount less than $13,468. Information contained in this article is not intended to be and is not a source of legal advice.

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

ClosingCorp has announced that it has agreed to integrate data from the American Land Title Association’s ALTA Registry of title and settlement agents. “We’re pleased ClosingCorp plans to include the ALTA ID on its Title Agent Fee Sheets,” said Paul Martin, ALTA Registry Director. “We share a goal of improving the accuracy of titleagent-related data, and the emergence of the ALTA Registry as an effective and easy-to-use source of data and information comes at the perfect time to improve the accuracy of fees on the TILA-RESPA Integrated Disclosure (TRID) Closing Disclosure form. The national ALTA Registry is a unique real estate utility created specifically for the mortgage industry and technology providers, such as ClosingCorp. For the first time, the industry has a single source of agent information and national identifier for each location in the form of the ALTA ID.” ALTA launched the ALTA Registry in 2017 as the first national database of title insurance agents and settlement companies. In addition to contact information and branch locations for agents and title companies, each ALTA Registry listing also includes a unique location identification number, the ALTA ID. The availability of unique ALTA IDs will allow lenders to have access to branch location details, accurate legal entity names and direct contact information for underwriters to request authorizations and approvals. In addition, because the ALTA ID is the same across the service, lenders can check who is licensed for what with speed and confidence. “Under the TRID rule, lenders must be confident that their third-party providers are quoting accurate rates and fees. Not having reliable vendors creates a greater risk of fraud, tolerance

Non-bank direct lender Civic Financial Services has announced that it has furthered its commitment to the multifamily space with the launch of CIVIC Multifamily. Real estate and commercial lending executive, Brian Murphy, joined CIVIC in March of 2018 to grow its multifamily division. As Managing Director of CIVIC Multifamily, Murphy has redesigned the initial guidelines, positioned the product in the multifamily space, and identified a proficient team–including analysts and six loan originators. “In 2018, we invested a thoughtful approach to the build, design and implementation of our multifamily product,” said Murphy. “On the heels of the build and surpassing $2 billion in funding volume, we are heading into 2019 in relentless pursuit of our goals. We understand the needs of our investors when acquiring, rehabbing and operating real estate for profit.” In assessing the caliber and positioning of CIVIC Multifamily, William J. Tessar, President of CIVIC, said, “While we anticipated a robust unit-base product from the start, our capital partners quickly realized that we had the ability to take on more volume and much larger properties—up to 100 units. Based on the sophistication and detail in the platform buildout, CIVIC is poised to be the player in the non-bank sector for multifamily bridge debt between $1 million to $10 million.” On Q Financial Expands Across the Eastern Seaboard

On Q Financial Inc. has announced an expansion across the Eastern Seaboard, with new continued on page 36

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MBA’s Mortgage Action Alliance A Message From MAA Chairman Jeffrey C. Taylor continued on page 84

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With the new political climate on Capitol Hill, now is the perfect time to take advantage of the Mortgage Action Alliance (MAA) and its free advocacy tools. MAA has a “Share Your Story” function that allows members to introduce themselves as a resource for housing/financial services issues in the congressional district and state. Like our Calls to Action, it matches you to your lawmakers using your zip code, and then generates some talking points to help you craft your message to the individual offices of your Representative and Senators. Talking points include things like: l Point 1: I have spent [XX] years in the real estate finance industry. l Point 2: My company has supported putting approximately [XX] families and individuals into homes this year. l Point 3: My company is proud to employ [XX] of your constituents. l Point 4: The biggest problems facing my business and our customers are … [what is happening: Can’t close their loans, losing their homes, paying a higher rate, incurring additional costs due to …] l Point 5: If you have any questions about legislation facing the mortgage market, please reach out to me as a constituent in the industry. You can reach my by phone at [Insert Phone] or e-mail at 36 [Insert e-mail]. This tool is great because it doesn’t make an ask (e.g. vote yes or no or co-sponsor a bill). It is strictly so that they can identify constituents and voters who can be helpful resources as they develop and learn more about policies that impact your businesses, your customers and the broader economy. It is also useful to help new MAA members get more engaged in the political process. To get the most out of this experience, take a look at MAA’s Campaign Kit, located at MBA.org/MAA. The site includes everything you need to encourage your staff, team members and industry colleagues to join and participate with the MAA and broader industry advocacy initiatives. If you are interested in running an MAA enrollment campaign at your company, please contact MBA’s Associate Vice President of Political Affairs Alden Knowlton at (202) 557-2816 or e-mail AKnowlton@MBA.org. Ready for more? Join more than 400 of your peers at our National Advocacy Conference (NAC) on April 2-3 in Washington, D.C. NAC is the largest and only advocacy event focused solely on real estate finance issues. Through NAC, we have one collective voice through which to influence major positive change. This year, attendees will also be treated to an exclusive event on opening night. We have reserved the breathtaking Great Hall in the Library of Congress for our opening reception, which will provide you with a unique opportunity to meet and mingle with your elected officials, network with your peers and MBA leadership and dine in this historic location. To register and learn more, head to MBA.org/NAC. Folks who sign up before Feb. 21 save $100 on their registration fee. Jeffrey C. Taylor is Chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. Jeffrey is also CoFounder and Managing Director of Digital Risk, a provider of mortgage risk, compliance and transaction management solutions. His is a frequent guest on financial television networks, such as Fox Business News and CNBC, as well as a source to top tier new outlets including The Wall Street Journal, sharing keen insights on the U.S. mortgage market and the economy.

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branches in Maryland; Virginia; Washington, D.C.; Pennsylvania; and Delaware, spearheaded by the company’s new Regional Vice President of the Mid-Atlantic Region, Brian Logie. “I chose On Q because they’re at the forefront of the mortgage industry when it comes to innovation and inclusion,” said Logie. “I’m very excited to continue to bring awareness to On Q in the Mid-Atlantic region with our plan to start with Annapolis, Maryland and expand into Virginia, Delaware, Washington D.C., Pennsylvania, and beyond. I’m ready to bring the dream of home ownership to a whole new market for On Q.” Logie has over 18 years of experience in the industry. In his previous role, Logie opened 9 branches, hired over 85 people, and grew his team’s loan volume from $4 million to $40 million a month. “Brian has hit the ground running in the short amount of time he’s been here with On Q. He’s made incredible contacts in his region. My vision for him is to make On Q the lender of choice in the Mid-Atlantic region. His energy, diligence, and dedication are critical for our plans to grow our brand and bring the dream of home ownership to countless families,” said Shane Miller, On Q Financial’s Senior Vice President– Eastern Division. Richey May Acquires Amata Solutions Richey May, a Denverbased accounting and advisory firm serving the financial services and real estate industries, has acquired Amata Solutions, an Eagle Mountain, Utah-based provider of customized planning and business intelligence tools for mortgage lenders. The financial terms of the acquisition were not disclosed, and the transaction comes three months after Richey May made an investment in Amata Solutions, which will now function as part of Richey May Technology Solutions, a consulting division launched last year. Benjamin Duke, Amata Solutions’ founder, has become executive director of data analytics with Richey May Technology Solutions. “We were confident that our

clients would love Amata Solutions when we partnered with the firm three months ago, but we may have underestimated how much,” said Ken Richey, Co-Founder and Partner of Richey May. “This acquisition puts Richey May in a perfect position to help mortgage lenders address tighter margins and lower volume so they can stay several steps ahead of their competition.” Mid-Island Mortgage Celebrates 60th Anniversary

Mid-Island Mortgage Corp. has announced that it is celebrating its 60th anniversary in 2019. To commemorate this milestone of enduring success and experience, Mid-Island Mortgage unveiled new company branding and a new Web site at MortgageCorp.com. “This day and age, it is quite rare for a business to attain 60 years of operations, and so we are exceedingly proud of reaching this special milestone,” said Louis Bottari, President and Chief Executive Officer of MidIsland Mortgage. “But more importantly, during these 60 years, we are honored to have helped enhance tens of thousands of peoples’ lives across the New York area and beyond by providing them affordable home mortgages and homeownership opportunities. Invigorated by this achievement, plus our newly branded website and its new client services, we look forward to serving Long Island, the New York area and much of the eastern seaboard for decades upon decades to come.” Guild Mortgage Partners With Homebot Guild Mortgage has announced an alliance with Homebot, a personalized financial dashboard that enables Guild’s Loan Officers to provide homeowners with invaluable insights into their individual financial picture as it relates to their home. Guild’s technology, business development and compliance teams partnered with continued on page 48

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2019 Non-QM Lender Showcase

ver the last few years, we have seen the non-qualified mortgage (QM) space go from its infancy, to a mature market with an array of options for mortgage companies to offer their borrowers. What we love about the non-QM space most is the ability for the smaller, fastermoving independent mortgage companies to be able to embrace these products and offer them on the street. As the selection of loan programs increase from non-QM lenders, it becomes necessary to provide listings like our “2019 Non-QM Lender Showcase” to showcase the best non-QM lenders in the industry to work with.

Non-QM Programs: Platinum Program, Portfolio Select Program, Bank Statement Program, Foreign National, Investor Cash Flow, NonPrime/Recent Housing Program, Asset Qualifier Program States Licensed In: Georgia Web Site: AngelOakM.com

Non-QM Programs: Jumbo Loans, Bank Statement, One Month Bank Statement, ATR in Full, Asset Depletion, VOE Only, Non-Owner Business Purpose, 5 to 35-Unit Commercial, Interest Only, MixedUse, Foreign National, DSCR, Bankruptcy, Foreclosure and Short Sell, Self-Employed, and Stated Income. States Licensed In: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Montana, Nebraska, North Carolina, New Hampshire, New Jersey, Nevada, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington D.C., Wisconsin and Wyoming. Web Site: CitadelServicing.com

Non-QM Programs: Elite Access, Premier Access, Homeowner’s Access, Fresh Start, Investment States Licensed In: Nationwide Web Site: CaliberWholesale.com

Non-QM Programs: Carrington offers a variety of non-QM loan programs to qualified borrowers. We take pride in offering loans to fit a wide range of financial circumstances, helping you close more loans that others can’t. Choices include the Carrington Flexible Advantage Program, Carrington Flexible Advantage Plus Program, and Carrington Investor Advantage Program. States Licensed In: Nationwide, except Massachusetts and North Dakota Web Site: CarringtonWholesale.com

Non-QM Programs: We are an end game player, meaning we are one of the few direct securitization players in the industry. Our offerings include Expanded-Prime, Near-Prime, Non-Prime, Foreign National and Investment Property products with loans up to $3 million and 95 percent LTV’s available on some programs. We are a technology leader, with a Scenario Desk, Scenario Calculator, and AUS to help guide you along the qualification path. Deephaven purchases and originates non-agency residential mortgage loans in partnership with originators nationwide. Our mission is to provide private-capital market liquidity for responsible, new, alternative products made to borrowers who are unable to obtain traditional financing. States Licensed In: Licensed nationwide, except for Alaska, Hawaii, Missouri, New York and Wyoming Web Site: DeepHavenMortgage.com

Non-QM Programs: 12- and 24-month personal bank statements; 12- and 24-month business bank statements; 3-month bank statement; Full-Doc; Asset Depletion; REO as asset depletion; No Ratio; DSCR; ATR in-full; Foreign National ; Non-permanent resident alien; and ITIN States Licensed In: Licensed in Arizona, California, Colorado, Florida, Georgia, Hawaii, Michigan, Montana, Oregon, Texas, Utah, Washington and Wyoming Web Site: FundLoans.com

Non-QM Programs: Near Prime Full Doc; Non-Prime Full Doc; 12- & 24-Month Bank Statements; Investor-No Income & No Reserves; ITIN Full Doc; Foreign National; Asset Depletion; and Verification of Employment States Licensed In: Licensed in DRE#01300944, DBO# 603L516, AZ#0919899, CA#333659, CO#333659, CT#MCL-333659, DE#29707, FL#MLD886, GA#33937, ID#MBL-7961, IL#MB.6760993, LA#333659, MD#21707, ML#333659, MI#FL0018821, MS#333659, NJ#333659, NC#L-156181, OH#MBMB.850183.000, OK#ML010327, OR#ML5093, PA#48972, TX#333659, VA# MC-6781, WA#CL-333659, NV#4791 Web Site: GreenboxLoans.com

Non-QM Programs: We have a pricing and eligibility tool for expanded and non-QM loans, so you can select the right product with confidence. Near-Prime, Bank statement programs, investor solutions including DSCR, recent credit events and lease to own. States Licensed In: Licensed in all 50 states and D.C., some products have state restrictions Web Site: Wholesale.LHFS.com

Non-QM Programs: Qualify more borrowers with our Smart Series NonQM products; SmartCondo: Non-warrantable condos; SmartEdge: A Non-QM Jumbo, loans up to $3 million; SmartFunds: Asset based, no income documentation required; SmartSelf: For the self-employed, bank statement program; SmartTrac: Recent credit event States Licensed In: Licensed nationwide, except for Alaska and Hawaii Web Site: NewRez.com

Non-QM Programs: PRMG offers a wide variety of non-QM options, including 12- or 24-month personal or business bank statements for qualifying; 55 percent DTI on loan amounts up to $3 million; there are interest-only options, which include a 40-year amortization terms for both fixed and ARMs; we offer one-year tax return with P&L for selfemployed or one-year for wage-earner and 1099 borrowers; we also allow asset depletion and can allow use of other real estate equity in the total asset calculation when determining the qualifying assets to be used for income; we have options for borrowers with very recent derogatory credit events (for instance, just out of foreclosure, bankruptcy, etc.); foreign national borrowers and non-warrantable condos are also options on these products; fees are allowed to exceed the three percent QM cap; and the non-QM products are available for all three lending channels. States Licensed In: Licensed nationwide, except Hawaii and New York Web Site: PRMG.net

Non-QM Programs: Non-QM Simple Access; Non-QM Jumbo Elite; Non-QM Expanded Plus States Licensed In: Licensed nationwide (all 50-plus states) Web Site: REMNWholesale.com

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Mortgage Professional of the Month

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Bob Dougherty Executive Vice President of Business Development Calyx Software By Phil Hall

ob Dougherty is Executive Vice President of Business Development at San Jose, Calif.based Calyx Software. In this installment of our Mortgage Professional of the Month series, we visit with Bob to learn about his distinctive double-career as a mortgage industry and software industry executive.

Prairie, Minn. An associate and I discussed starting our own business. That discussion turned into a reality and we opened Timberland Mortgage Services in 1996. We built a very successful company for 11 years, before its closing in 2007. It was one of the best times of my life–we purchased our own building and had 45 people working for us in two branches. We did retail and wholesale loans in Minnesota, Wisconsin and Colorado.

How did you come to Calyx Software? In early 2016, I received a call from Dennis Boggs, who at the time, was the Executive Vice President of Calyx. He wanted me to come to Dallas to talk with him about joining the company. I had been a Calyx customer since 1997, so I was familiar with the company and its staff. When I arrived, it was great putting faces with names. I soon accepted the offer and became Vice President of Business Development for Calyx. Upon Dennis’ retirement in June 2018, the company announced that I was taking over his role. I was truly humbled and honored when the announcement came as Dennis had been with the company for 25 years and he had big shoes to fill. What separates Calyx from its competition? We have been an industry leader for quite some time–and not just on the Mortgage Broker side, but also on the financial institution side. Our longevity is backed with corporate stability and soundness. We have gained that stability

Is it correct to say that coming from a mortgage background, you would also have an insider’s perspective on how to make a software product more beneficial to this particular industry? The software business is completely different from the mortgage business. However, I do enjoy the opportunity to talk with developers from an Originator’s perspective. I believe it helps make a difference in our customers’ experience with the software. It’s important that sales and operations work together. Without one, the other doesn’t exist. In your professional opinion, how has the mortgage industry dealt with technological innovation? The mortgage industry has been trying to drink from a fire hose with technology. In other words, there is so much new technology out there, and as an industry, we have to figure out what we can do with it. So many things have changed continued on page 82

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What happened to your business? My business partner wanted out of the business. He was not having fun anymore and felt the risk had become too high. We were never in any trouble, and we never even bought back a loan, but he wanted a change. Luckily, his intuition was correct and we got out before everything hit the fan in late 2007 and 2008. From there, we took part of our team and went into commercial lending, starting Boom Brothers Commercial Capital at the end of 2007, which we closed six years later. It was a good learning experience, but I didn’t enjoy it. Commercial lending was too transactional, and I did not have a love for it. After that, I became Vice President of Mortgage

Operations for a community bank in southern Minnesota. I joined the bank in November 2011 and made a switch in early 2016.

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How did you get into the mortgage profession? Was this your original career path? Bob Dougherty: I graduated with a finance degree in 1992, but I had no idea what to do with it. I saw an advertisement for a Loan Officer at Fleet Finance, a division of Fleet Bank. It was my first job out of college and I was making $18,500 a year. During my time at the finance company, I learned there was a possibility they would be closing their doors. I started searching for another position and landed a job with EquiCredit Corp. for a sub-prime lending company. That was during a time when subprime lending was not a bad word. During my time at EquiCredit, I realized Brokers were making all the money, receiving the highest rewards, and enjoying the satisfaction of helping customers obtain their dreams of homeownership. I quickly came to the realization that I was missing out on direct interaction with borrowers and all the excitement of helping them obtain their dream home. I began cold-calling on the weekends, and wound up closing four or five loans for a company called MoneyLink. A short time later, I took a job with MoneyLink, and within six months, I was promoted to manager of a new branch in Eden

“The mortgage industry has been trying to drink from a fire hose with technology. In other words, there is so much new technology out there, and as an industry, we have to figure out what we can do with it.”

by spending a lot of time listening to our customers. When we build and innovate our products, we meet with customers. Last year, I spent 45 days traveling, which began in Hawaii, criss-crossed the country, and ended in Maryland. There is nothing more satisfying than meeting customers face-toface and asking them questions such as: How does the product work for you? What would you change about it? What would you do differently? I then took their feedback and brought it back to our team here at Calyx to strategize our next steps and offerings.

How to Use Non-QM Programs to C and Finally Avoid Being Seen as J an we be honest with each other for just a minute? I know our business can be very frustrating at times, but do you ever feel like just another head of lettuce? Let me explain with a story that I would bet has happened to you numerous times, but you still may not be able to figure out why it happens. You work hard and get an appointment to meet with an agent you want to do business with. During the time together, you explain the excellent programs you have, how competitive your pricing model is and of course the excellent service you are able to provide to them and their clients. The meeting goes well, at least in your mind, and you never hear from that agent again. The problem of course is that all the agent heard was more “Blah, blah, blah” since what you said is repeated over and over again by every Originator who tries to earn their business. You are in their mind just another “head of lettuce” commodity.

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The three step solution to standing out in the crowded field of originators There are three steps to take in order to stand out in your industry: Pick a niche; become the expert; and Let everyone know about your expertise. These days, everyone must have competitive rates and provide excellent service or you simply cannot remain in business. But the key to success is to focus on being seen as the expert in a niche that very few other originators are marketing to.

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It all seems very counter intuitive–which is why it works! We all try to have every program and product and that is important. But you need to become known for one particular area of expertise so that you stand out in a crowded field of competitors. The reality is that while you see this as limiting, it actually sets you apart as a top lender and allows you to open doors that may have been closed until now. Step 1: Pick a niche Here are some great examples of niches … l Boomerang buyers who are now back in the marketplace and are able to buy l Self-employed buyers who don’t show their incomes l Investors who need no income verification loans l Small-balance commercial loans that banks cannot handle l Foreign nationals that don’t meet Fannie Mae guidelines l Renovation loans Step 2: Become the expert If you want to become the expert in this niche, simply look at the various non-QM programs available and meet with reps. Review their guidelines and programs and also know the guidelines for FHA/VA/Conventional loans as they pertain to your chosen niche. When we stop and think about it, we are actually doing things

backwards in our business. We decide to market ourselves, and then we get a bunch of leads. Then, we sift through these leads and try to find the programs best suited for them. When you stop and think about that, it is truly a bit crazy. Instead, why not look at the programs you offer, target the best candidates for those programs and then market to them? For example, many non-QM companies offer programs for buyers who have had a recent bankruptcy, foreclosure, or short sale. Often, you are able to assist them one day after this event. So get a list of these motivated candidates and let them know that they are able to purchase a new home. Step 3: Let everyone know about your expertise This is actually the best part of the entire process. You can now walk into a closed real estate office or builder who has their own in-house company. Simply tell them you realize their company is excellent, but how are they handling these types of buyers? You can also go to local banks and credit unions, and even other Originators in your area who can send you these deals they are not able to handle. Finally, you are able to now teach classes at your local board of Realtors and/or homebuilders or at local real estate offices, and show your new area of expertise. My favorite niche My favorite niche is working with buyers who have had a bankruptcy or foreclosure. There are now 7.3 million Boomerang Buyers who had a challenge during the meltdown, but are now able to purchase a home. Although many of them are not aware that they now qualify. Even better is the fact that very few Originators are familiar with this niche, so you will have very little competition. If you are interested I have put together a very special presentation on this topic you can view at http://boomerangexpert.com/special-offer.

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. His new book 48 Proven Ways to Close More Loans is available at 48WaysBook.com/Special.

o Close More Loans Just a Head Of Lettuce

By Brian Sacks

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The NAPMW Report NAPMW Presents Its 2019 Annual Education Conference “Jazzin’ Up Mortgage in the Big Easy”

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46 The NAPMW 2019 Annual Education Conference “Jazzin’ Up Mortgage in the Big Easy,” will be held Wednesday-Saturday, May 15-18, 2019 at the historic Hotel Monteleone in New Orleans. The Hotel Monteleone is one of the last great family-owned-andoperated hotels in New Orleans. Since 1886, five generations of Monteleones have dedicated themselves to making their hotel what it was—and still is—a sparkling destination in the heart of the French

Quarter. The Hotel Monteleone has long been a favorite haunt of distinguished Southern authors. Many of them immortalized the venue in their works. Ernest Hemingway, Tennessee Williams and William Faulkner always made The Hotel Monteleone their address while in the Big Easy. In June of 1999, due to Hotel Monteleone’s distinction among the literary elite, the Hotel was designated an official literary landmark by the Friends of the Library Association.

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

Thursday, May 16

8:00 a.m.-4:00 p.m. NMLS CE With Ken Perry of The Knowledge Coop For more than 20 years, Ken Perry has been making the mortgage lending world a better place through his teaching and speaking. His signature move? Making mortgage learning easy and fun … really! Ken has been a relentless innovator in mortgage training, leveraging humor and technology to share his deep industry knowledge and unique perspective on today’s lending landscape with a wide audience. His company, The Knowledge Coop, was among the first to offer NMLS-approved continuing education to loan originators. They continue to provide engaging live and online learning opportunities. Ken is an accomplished and entertaining speaker who has brought his fun and insightful brand of training to hundreds of thousands of mortgage professionals, covering everything from compliance and ethics, to updates and forecasts, business development and strategy, and things like social media and cybersecurity, all with a keen eye on how it helps the industry do better business.

7:00 a.m.-8:30 a.m. Breakfast With Exhibitors

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. First-Timers Meet & Greet 8:30 a.m.-8:45 a.m. Presentation of Colors—Veteran Recognition 8:45 a.m.-9:30 a.m. President’s Welcome With NAPMW President Laurel KnightKeane/PNPAC–First-Timers–Local Association Presidents 9:30 a.m.-9:45 a.m. Break/Expo Preview 9:45 a.m.-10:45 a.m. Keynote Speaker: Patrick Kelly, EVP National Sales, Informative Research How Using the Right Strategies, Existing Consumer Data and Technology Can Propel You Forward in 2019 The year 2019 could find the lending community in a crowded market for consumer capture. Stiff competition and market flux will require lenders to review the success of current strategies and potentially

adopt new ones to remain competitive. Join Patrick Kelly, Informative Research’s EVP of National Sales, and learn about the three key factors you need to consider–spend, P&L strategies, technology and proper utilization of data–that will help you hit the ground running in 2019. With more than 45 years of experience in the mortgage industry, Patrick has played an important part in building Informative Research’s current sales team. Having been with the company for more than five years, his expertise covers all aspects of the mortgage industry and process, from appraisal and operations to loan production and support. Previously, Kelly worked as a Vice President of Sales for both First American and CoreLogic Credco.

unstoppable mindset that can endure any market … overcome limiting beliefs or self-sabotage Develop your lead funnels effectively, and understand the power of habits and how they can propel your business forward. Kelly is a writer, speaker, EVP of Paramount Partners Group, and Founder of both Foundation to Sustainable Success and Big Voices—a women-empowered network. She has published two books Foundation to Sustainable Success and the recent best-seller, Big Voices. Although she has now found a way to balance and prioritize what’s most important in her life, it wasn’t always that way. Through both her platforms she shares her journey to create an extraordinary life.

10:45 a.m.-11:00 a.m. Break With Exhibitors

11:45 a.m.-12:45 p.m. Lunch & Learn With NAPMW Member Information Swap Meet

11:00 a.m.-Noon Ketrick Kelley, FBI Special Agent With Guest Tobi Libbra of IL Group 2019 Security Information for the Finance Industry Securing information in any industry is of utmost importance in today’s digital age. When we are speaking about the finance industry, information of both the institution and the consumer must be number one on the list. FBI Special Agent Kelley will be teaching the audience the things to look for regarding data breach, e-mail phishing, and other cyber scams and how to prevent them.

12:45 p.m.-1:00 p.m. Break—Expo Open

2:00 p.m.-2:15 p.m. Break—Expo Open

2:15 p.m.-3:15 p.m. Chris Avery, Vice President, First Tennessee Warehouse Lending D-E-V-E-L-O-P: This Handy Mnemonic Can Change the Way You Do Business Without the concept of “Development,” the world would be filled with wonderful ideas, but none would ever come to realization. There would be musical notes, but no songs. We’d have words, but no stories. Whether you need to develop your business, territory, team, community, family, or relationships; join me for an interactive discussion and learn how this mantra and its process is a way to produce results. Chris is responsible for the development, service, and retention of independent mortgage banking customer relationships to utilize our committed line of credit to close residential mortgage loans prior to investment purchase. He has succeeded rapidly in the industry lending more than $5 billion with 35 new relationships in the past 30 months and is a three-time Diamond Circle Award winner. First Tennessee Warehouse Lending services more than 270 customers nationwide, with close to $6 billion in approved lines.

2:30 p.m.-3:30 p.m. Michael Whitbeck, Managing Partner, UberWriter Solutions Field Guide to Underwriting … Loan Approval Simplified Michael Whitbeck is a subject matter expert on the process of mortgage underwriting and for more than 25 years, he continually built content and systems to teach a process to improve people’s underwriting skill set. Michael is the Co-Creator of UberWriter, which has been a huge success in the market.

Friday, May 17 8:00 a.m.-8:30 a.m. Breakfast With Exhibitors

3:30 p.m.-4:30 p.m. NAPMW General Business Meeting 4:30 p.m. Main Ballroom Closes 6:00 p.m.- 6:45 p.m. Cocktail Mixer With Exhibitors 7:00 p.m.-10:00 p.m. Awards Gala Dinner/With Guest MC and Speaker Patrick Kelly, Installation of 2019 NAPMW New Officers

Saturday, May 18

8:30 a.m.-10:00 a.m. General Session: FNMA, FHA, HUD, Etc. Panel Discussion A diverse panel of agencies will be addressing recent and upcoming changes within the mortgage industry in an interactive Q&A session with attendees.

9:00 a.m.-10:00 a.m. NAPMW Local Association President Training

10:00 a.m.-10:20 a.m. Break—Expo Open

10:00 a.m.-Noon National Board Meeting & 2019-2020 Strategic Planning Meeting All attendees are strongly encouraged to attend. Lunch will be provided!

10:30 a.m.-11:30 a.m. Kelly Resendez, Executive Vice President, Paramount Partners Group Jazz up your mindset and create an abundance of success! Create an

9:00 a.m.-10:00 a.m. NAPMW Local Association Treasurer Training

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

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2:00 p.m.-2:15 p.m. Break—Expo Open

Noon-12:30 p.m. Lunch With Exhibitors–Expo Open

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12:30 p.m.-2:00 p.m. Dorinda Smith, Retired CEO & President, SunTrust Mortgage Join this interactive session, complete with audience Q&A to an amazing panel of Industry Professionals in operations, originations, sales, and vendors. Showing the intricacies of how each level brings it all together to make finance run smoothly!

1:00 p.m.-2:00 p.m. Cathleen Schreiner Gates, Executive Vice President of Sales & Marketing, Ellie Mae Cathleen Schreiner Gates has served as EVP of Sales and Marketing since March 2015. She oversees all sales, marketing, client management, professional services and customer support and training. She previously served as Ellie Mae’s Senior Vice President of Sales and Client Services from February 2012 to March 2015. From January 2010 to December 2011, she served as Senior Vice President of Sales and Client Services for Bersin and Associates, and from October 2008 to December 2010, she served as Vice President of Sales, Business Development and Client Success for Clickability Inc. She has held various senior management positions with MarketTools Inc. and Keynote Systems/Vividence Inc. She holds a Master’s of Business Administration in Finance from the Rutgers Graduate School of Management, and a Bachelor of Arts in French Literature from Douglass College-Rutgers University.

FEBRUARY 2019 n National Mortgage Professional Magazine n

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Save the Dates NRMLA WESTERN

March 25-26, 2019

Pasea Hotel Huntington Beach • Huntington Beach, CA

NRMLA EASTERN Ma ay 20-21, 2019

InterContinental New York r Times Square • New York, NY Y

NRMLA ANNUAL Novembe b r 18-20, 2019

Nashville Omni • Nashville, TN

Homebot to deliver a marketing automation platform that would empower LOs to offer customers relevant data, economic insights and market intelligence and stay connected with homeowners in a meaningful, personalized way long after the mortgage transaction has closed. Homebot’s home digests and market reports provide monthly, easy-to-read, updated home financial advice. Homeowners receive free, regular insights, including their current home value, how their equity is building over time, refinancing opportunities, purchasing power for buying a new home or trading up to a new home, cash flow and short-term rental opportunities. “We are always looking for opportunities to provide our customers with more information about what is likely the most important investment in their life and how it can contribute to long-term security,” said Mary Ann McGarry, President and Chief Executive Officer of Guild. “Our partnership with Homebot will help our loan officers enhance their roles as trusted advisors by delivering invaluable insights that are important to each homeowner’s financial future. Creating deeper and more valued relationships is part of our focus on keeping customers for life.” Guild Mortgage will provide the company’s more than 1,100 Loan Officers nationwide access to Homebot’s marketing automation software as part of its ongoing customer retention initiative. The Homebot “Lender Base” service will be available to Guild loan officers at no cost to them. Ernie Graham, Chief Executive Officer of Homebot, said “The relationship between the professional and homeowner doesn’t start and stop at the home purchase transaction. Today’s consumers demand and deserve more–an advocate who will be with them before they purchase their first home and throughout the lifecycle of homeownership to help them make the best possible decisions with their investment. We are pleased to provide that platform to Guild’s Loan Officers across the United States and to be with them

continued from page 36

every step of the way to ensure that they find success with Homebot in their own business.” Mortgage Professionals to Watch

FIGUEROA

heard on the street

l WFG National Title Insurance Company has announced that Jessica M. Figueroa has joined the company as Senior National Commercial Underwriting Counsel for its Commercial Division based in New York. l Nashville-headquartered Churchill Mortgage has announced the promotion of Liliana Nigrelli from Vice President of Compliance to Chief Compliance Officer. l ClosingCorp has named Dori Daganhardt Senior Vice President of Data Strategy, where she will be responsible for elevating the company’s data strategy, specifically expanding the data and predictive analytics offerings. l Trulia has hired Issi Romem as its new Chief Economist. l Informative Research has named Matthew Orlando as their new Head of Sales and Strategy. l LenderClose has announced lending industry veteran Eric Scheuer has joined the fintech firm as Sales Executive. l Cloudvirga has announced the appointments of Dan Sogorka as Chief Revenue Officer and Kelly Kucera as Senior Vice President of Marketing. Sogorka, a seasoned mortgage technology executive, will drive Cloudvirga’s continued revenue growth and oversee the firm’s sales and marketing strategy with the help of veteran cloud technology marketer Kucera. l Atlantic Home Mortgage, based in Alpharetta, Ga., has hired Naveed Bhurgri as a Partner. l Mortgage Network Inc. has named Stephen Balbi a Loan Officer in the company’s Exton, Penn. branch. l Sagent Lending Technologies has announced the appointment of Matthew

the addition of five associates to its growing team: Cliff Hill as Senior Engineer, alongside four new Sales Development Representatives, Tor Gach, Christen Jones, Sean Kastli and Benjamin Proffitt. l HomeServices of America, an affiliate of Warren Buffett’s Berkshire Hathaway operations, has named Gino Blefari as its new Chief Executive Officer. 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 email are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

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

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

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n National Mortgage Professional Magazine n FEBRUARY 2019

of Staff, reporting directly to Joseph Otting, who became Acting Director of the FHFA in early January. l Mortgage Guaranty Insurance Corporation (MGIC) has announced the promotion of Robert J. Candelmo to Senior Vice President–Chief Information Officer, Sean R. Valcamp to Vice President–Chief Technology Officer, Nathan Colson to Vice President– Finance, and Tara E. Radmann to Vice President– Business Automation. l LenderClose has announced

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Tully to its executive leadership team as Vice President of Agency Affairs and Compliance, where he will be responsible for furthering Sagent’s interests with key lending industry stakeholders and influential organizations in the Washington, D.C. area. Freddie Mac has announced the promotion of Executive Vice President Ricardo A. Anzaldua to General Counsel and Corporate Secretary. Blue Water Financial Technologies has added to its growing executive team with the hiring of Travis LaMar as Managing Director, Head of Capital Markets. Robert D. Broeksmit, CMB, President and Chief Executive Officer of the Mortgage Bankers Association, has announced that Alden Knowlton has earned a promotion to Associate Vice President for Political Affairs within the association’s Legislative and Political Affairs team. New American Funding has named Jim Bromwell MidAtlantic Area Manager for the Delaware; Maryland; New Jersey; Pennsylvania; and Washington, D.C. regions. Bromwell will be based in Newark, Del., where he will focus on further expanding the team with new Loan Originators to continue the company’s surging growth. Caliber Home Loans has announced that James Hecht has joined the company as Executive Vice President, Head of Retail Production. Hecht will oversee all retail production responsibilities for Caliber, leveraging his more than 20 years of experience and expertise in home lending. Blend, a San Francisco-based fintech start-up, has hired former Fannie Mae President and CEO Timothy J. Mayopoulos as its President and a member of its Board of Directors. Castle & Cooke Mortgage LLC has announced that Loan Officer Jessie Van Wagoner has joined its North Salt Lake, Utah branch. Previously, he worked on Castle & Cooke Mortgage’s corporate production team and focused on borrower retention. Van Wagoner will report to branch manager, Dan Hubrich. The Federal Housing Finance Agency (FHFA) has announced that John Roscoe has been appointed as Chief

NAMMBA CONNECT 2019 Wednesday-Saturday, April 24-27 The Westin Buckhead Atlanta 3391 Peachtree Road NE, Atlanta

ONNECT 2019 provides you with an opportunity to network with mortgage and real estate professionals from across the real estate finance industry and will feature some of the top speakers in the mortgage and real estate industry. NAMMBA CONNECT is not just an event, it is an experience designed to connect you with industry stakeholders, world class trainers and peers from across the country.

CONNECT 2019 Agenda Agenda subject to change

Wednesday, April 24 4:00 p.m.-7:00 p.m. CONNECT LIVE (Live Music) Get a jump start on CONNECT 2019 by picking up your registration badge the evening before the conference starts and enjoy free food, free drinks and networking while listening to live entertainment featuring a DJ.

Thursday, April 25 7:00 a.m.-8:30 a.m. Registration 8:30 a.m.-9:15 a.m. Welcome to Connect 2019 Join NAMMBA Founder/CEO, Tony Thompson, CMB in the Opening Session, which includes presentations featuring the association’s

achievements over the past year, as he officially kicks off CONNECT 2019 and sets the tone for two-and-a-half amazing days of motivation, education and learning to help attendees take their career and business to the next level. 9:15 a.m.-10:15 a.m. State of the Industry: CEO Perspective Featuring: Kristy Fercho, EVP, President of Mortgage, Flagstar; Lawrence Bailey, National Retail Sales Manager, JP Morgan Chase; and Tol Broome, President, BB&T Home Mortgage The pace of change in mortgage lending is accelerating and traditional business models are beginning to be challenged. To stay competitive lenders, need to understand the key trends that will impact them today, in the future and develop a business strategy that puts the customer at the center, so they are prepared to adapt to their everchanging needs and expectations. In this session, you will hear from some of the industry’s top CEO’s who are reinventing the consumer

experience while at the same time shaping the new business model of the future. 10:15 a.m.-10:30 a.m. Break 10:30 a.m.-11:30 a.m. Session: Carl White, Chief Strategist, Mortgage Marketing Animals Carl White is the Founder/Chief Strategist of The Mortgage Marketing Animals, and also the host of the number one Podcast for Loan Officers in America. Carl will show attendees specific step-by-step instructions on how to drastically increase their monthly loan production and income, while working only 32 hours per week. He does this by teaching people to hyper-focus their efforts, and to stop doing wasteful activities that they are currently doing that are not producing measurable results. By following the strategies, will be able to regain the freedom to do the things they want to do. Worrying about when and where the next deal will come from will no longer be a concern. 11:30 a.m.-1:00 p.m. Lunch Break at The Pavilion 1:00 p.m.-2:15 p.m. A Conversation With the GSE’s: Trends and Current Events Impacting the GSE’s Featuring: Danny Gardner, VP Affordable Lending & Access to Credit, Freddie Mac; and Jonathan Lawless, VP Product Development and Affordable Housing, Fannie Mae Join senior executives from Fannie Mae, Freddie Mac and Ginnie Mae to get an update on latest products, programs and initiatives the GSE’s are embarking upon to help make the dream of homeownership become reality for more consumers while helping companies to improve the client experience. 2:15 p.m.-2:30 p.m. Break 2:30 p.m.-3:30 p.m. LO Comp: Something Has to Give Featuring: Lori Brewer, Founder & CEO, LBA Ware The CFPB Acting Director, Mick Mulvaney, recently received proposed changes to the LO Comp rule submitted industry associations. With many companies experiencing tighter margins and competitive pressures from fintech lenders entering into the industry, will 2019 be the year of change for LO Comp? Join a panel of distinguished experts who will talk about the future of LO Comp, the proposed rule changes and most importantly the potential impact to loan originators and mortgage lenders of all shapes and sizes. This is one session you do not want to miss. 3:30 p.m.-4:00 p.m. Break 4:00 p.m.-5:00 p.m. The Future of Wholesale and Correspondent Lending Featuring: Kevin Peraino, Chief Lending Officer at Paramount Residential Mortgage Group Inc.; Allen Middleman, SVP, Freedom Mortgage; and Brian Vieaux, SVP, Third-Party Originations, Wholesale & Correspondent Lending, Flagstar Bank Wholesale lending has been one of the fastest growing channels in the mortgage industry for the last three years. Additionally, as the economy improves, some brokers are looking to become lenders and grow their retail platform as a mortgage banker giving creating more opportunity for correspondent lenders. This session will feature of panel of senior executives from the wholesale and correspondent channel providing their perspective on the future of these two channels.

5:00 p.m.-6:00 p.m. Expo Pavilion Featuring the “Cocktails & Connections Reception” and drinks and networking in the Expo Pavilion. An exciting kick-off celebration for conference attendees to enjoy refreshments, networking and an exclusive preview of The Pavilion, featuring more than 40 exhibitors showcasing technology tools, resources and products to help attendees grow their business or career, and Welcome Remarks from Tony Thompson, Founder & CEO of NAMMBA. 6:00 p.m.-8:00 p.m. Partner Networking Event New to CONNECT 2019, we’ve created a special time for you to connect with all of our sponsors, meet new friends or simply enjoy the sites of beautiful Buckhead, Atlanta. 6:30 p.m.-8:00 p.m. NAMMBA Private Dinner (Invitation Only)

Friday, April 26 7:30 a.m.-6:00 p.m. Registration 8:30 a.m.-9:00 a.m. Opening Remarks Tony Thompson, NAMMBA Founder & CEO recaps the first day of CONNECT 2019, while setting the stage for an empowering, informative and exciting day of speakers and sessions. 9:00 a.m.-10:30 a.m. mPower: Closing the Gender Divide Moderated by Marcia M. Davies, Chief Operating Officer, Mortgage Bankers Association and Founder, mPower; and featuring Claudia Merkle, President, National Mortgage Insurance Corporation; Susan Stewart, Chief Executive Officer, SWBC Mortgage; and Cerita Battles, SVP-Head of Retail Diverse Segments, Wells Fargo Home Mortgage This leadership panel, led by Marcia M. Davies, will address today’s gender equality challenges and discuss workplace solutions. These senior executives will share inspiring professional stories and highlight what they are doing to help eliminate the gender gap. This is an important dialogue, leaving you with invaluable lessons learned and new ways you can help your company be committed to gender equality. Men and women are invited to attend this special session. 10:30 a.m.-10:45 a.m. Break 10:45 a.m.-11:30 a.m. Session Featuring: Casey Cunningham, Founder & CEO, XINNIX, The Mortgage Academy; Erica Holmes, Vice President Operations, ISGN Solutions; Julie Piepho, CMB, CML, President-National Operations, Cornerstone Home Lending; and Patrick Carey, SVP, National Fulfillment Executive, Consumer Lending, Bank of America With more than 30 years of diverse retail mortgage banking experience, Casey Cunningham is one of the most influential visionaries in the industry. A close advisor to prominent executives across the nation, her ability to lead and transform is without rival. Cunningham’s passion for professional standards, relevant education, sales productivity and leadership accountability has come of age at a time when technology and demographic changes are reshaping our industry. 11:30 a.m.-12:30 p.m. Mega Trends Impacting Your Business! Featuring: Rob Chrisman, Capital Markets Consultant, Chrisman Inc. Hear some of the industry’s renowned practitioners discuss the current state of the mortgage industry and have open dialogue on all of today’s important issues–loan officer compensation, industry

consolidation, marketing agreements and regulations impacting our industry. This will surely be one of the conference most anticipated sessions. This session will give you a glimpse into what the future of our industry will look like over the next couple of years. 12:30 p.m.-2:00 p.m. Lunch Break at The Pavilion 2:00 p.m.-3:00 p.m. Session Featuring: Eric Thomas, CEO, Eric Thomas and Associates LLC The story behind Eric Thomas who was a high school drop-out, would become one of the greatest inspirational stories in the modern era. Very few individuals on the planet can say they’ve overcame all odds and reached massive success. For Eric Thomas, he is surely one of those people who experienced incredible challenges along the path of life. Born in Chicago, Illinois, he spent most of his childhood and teenager years in Detroit. Life wasn’t easy at all for him as he faced adversity and not knowing his father throughout his childhood. For two years, Eric Thomas was homeless and lived in abandoned buildings. Just to survive, he would eat out of trash cans. Today, Eric Thomas, Ph.D. is a critically-acclaimed author, world-renowned speaker, educator and audible.com Audie Awards Finalist. “ET,” as he is better known, has taken the world by storm, with his creative style and high-energy messages. 3:00 p.m.-3:15 p.m. Break

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3:15 p.m.-4:00 p.m. Session Featuring: Cindy Ertman, Success Strategist, The Defining Difference One of the great leaders, authors, coaches and successful success strategists shares her success secrets that will help you define your life and put you back on track to living a purposeful, balanced, financially fulfilled and happy life. Cindy has helped build one of the most successful mortgage companies in America, RPM Mortgage. She has been acknowledged as one of The Top 100 Most Influential Mortgage Executives in America by Mortgage Executive Magazine– four years in a row. She also serves on the faculty for one of the nation’s largest mortgage training companies. 4:00 p.m.-5:00 p.m. Expo Pavilion Spend time with our partners and vendors exploring all the tools and resources you need to take your business and career to the next level. 7:00 p.m.-10:00 p.m. NAMMBA Awards Gala/Live Music Featuring: Keynote Speaker Sue Woodard, Chief Customer Officer, Total Expert Honoring NAMMBA’s “Top 100 Originators” and NAMMBA’s “Best Places to Work,” take part in a formal evening event celebrating the achievements of the top diversity originators in the country. This exciting evening will entail a keynote and live entertainment by one of Atlanta’s most well-known bands.

Saturday, April 27 NAMMBA Sales Academy Join us for a special day designed to help originators who want to grow their purchase business. This day is designed to show you how to go to the next level by learning from successful originators who are already doing it. We are bringing some of the best originators from across the country to cover topics including–how to gain more realtor business, breaking into the builder market, niche products (203k and non-QM lending) time management strategies and more. 8:00 a.m.-9:00 a.m. Registration

9:00 a.m.-9:45 a.m. Sales Session #1A: Win by Noon Featuring: Todd Bookspan, Founder, Win By Noon Todd Bookspan is the founder of Win By Noon, a business planner designed to help sales professionals change their daily focus and find success in reaching their targeted goals. Todd is also a business coach and mentor to top sales performers and business executives. Todd is frequent speaker at industry events, and co-host of the weekly Mortgage Coach Productivity Mastermind. This session is will help you develop a game plan to increase productivity by completing nonrevenue generating task at the start of your day. 9:00 a.m.-9:45 a.m. Sales Session #2A: Realtor Mastermind Featuring: Tommy Jones, Loan Officer, SWBC Mortgage Tommy Jones is a top producing Loan Originator for SWBC Mortgage in Dallas, Texas. In a competitive market, Realtor referrals are critical for an Originator’s success. In this class, Tommy will show you a system he uses to connect with new Realtors by inviting them to participate in a Realtor Mastermind Group with their peers. This system results in Tommy building a meaningful relationship with his new agents and getting new loans from them. 9:00 a.m.-9:45 a.m. Sales Session #3A: Out of the Box Strategies to Build Your Business Featuring: Chris Reshetar, Branch Manager/Loan Officer, NFM Lending Chris Reshetar, Branch Manager for NFM Lending will show you how to develop relationships with Real Estate Agents by not cold calling on them, but using out-of-the-box strategies to add value to agents. As a top producer, Chris receives the majority of his business from Realtor referrals. However, these referrals are the result of Chris adding value to his agents by partnering with social media, creating radio shows and other unique methods to build relationships with top producing agents. This session is for those who are looking for unique ways to generate Realtor referrals. 9:00 a.m.-9:45 a.m. Sales Session #4A: Best Practices for Asian LOs Featuring: Dick Lee, EVP, Drew Mortgage Associates; Michelle Kim, Mortgage Consultant, HSBC; and Ace Watanasuparp, Regional Vice President of Residential Lending, Citizens Bank This session is designed for participants to hear top Asian originators from across the country share best practices on how to take their business to the next level for those who are marketing to this segment or looking at doing business with this group of homebuyers. The panelist will share tactics you can implement to build stronger relationships with Asian realtors and consumers, thus increasing your production. 9:45 a.m.-10:00 a.m. Break 10:00 a.m.-10:45 a.m. Sales Session #1B: Create A Niche With 203K Lending Featuring: Indu Kapoor, Branch Manager/Regional Renovation Manager TX, Guaranteed Rate Indu Kapoor, Branch/Regional Manager for Guaranteed Rate is one of the top 203K originators in the country. The rehabilitation market is projected to continue to grow over the next several years with buyers opting to stay in their homes versus purchasing new ones. Indu will share with you resources she uses to develop partnerships to help her create a niche in this growing market. 10:00 a.m.-10:45 a.m. Sales Session #2B: Making a Move From Banker to Broker? Featuring: Shawn C. Williams, President at Fortis Mortgage Thinking about opening your own mortgage brokerage? Shawn

Williams, President, Fortis Mortgage is a seasoned mortgage professional who recently transitioned from mortgage banker to starting his own mortgage brokerage. In this session, Shawn will walk you through the process from start to finish on the steps you should take when transitioning from banker to broker.

11:00 a.m.-Noon Keynote Speaker: To be Announced

10:00 a.m.-10:45 a.m. Sales Session #3B: Best Practices for Latino Loan Originators Featuring: Chris Roberts, Vice President, Senior Loan Officer, Regions Bank This session is designed for participants to hear top Latino originators from across the country share best practices on how to take their business to the next level for those who are marketing to this segment or looking at doing business with this group of homebuyers. The panelist will share tactics you can implement to build stronger relationships with Latino realtors and consumers, thus increasing your production.

1:30 p.m.-2:45 p.m. Top Producer Panel … The Next Level: Success Secrets of the Best LO’s in America Featuring: Robin McCauley, Loan Officer, Caliber Funding; Alex Varela, Branch Manager, Prime Lending; and Rocio Portella, Loan Officer, Annie Mac Home Loans Why is it so many Loan Officers get stuck at four or five loans a month, even with decades of experience? Stuck in a seemingly never-ending feast or famine cycle doing nine or 10 one month, followed by one or two the next? You spend one month filling the pipeline and then the next working ridiculous hours just getting those deals to the finish line. Hear from some of the country’s top professionals on how they’ve built a business to compete in a tough purchase environment.

10:00 a.m.-10:45 a.m. Sales Session #4B: The Anatomy of a Top Producer Featuring: Alex Varela, Branch Manager, PrimeLending Before you become a top producer, you must become a great practitioner with the X’s and O’s to scale your business. Join one of the top originators in the country as he personally walks you through how he builds his business by becoming the best originator in his market. Alex will share steps you can take to strengthen your foundation and tools you can use to make sure you can win every deal. 10:45 a.m.-11:00 a.m. Break

Noon-1:30 p.m. Lunch Break at The Pavilion

2:45 p.m. Closing Remarks CONNECT 2019 adjourns … many thanks to our sponsors and exhibitors. We look forward to seeing everyone return in 2020!

Sunday, April 28 9:00 a.m.-Noon Board of Directors Meeting

For more information, visit NAMMBA.org. 53

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Independent Mortgage Originators By Andy W. Harris, CRMS

Debt Does Deals, Christopher Griffith DebtDoesDeals.com Company NMLS: 1743790 / Personal NMLS: 1058493

FEBRUARY 2019 n National Mortgage Professional Magazine n

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This month, I’m interviewing Christopher Griffith, Owner of Debt Does Deals in McKinney, Texas. Christopher’s experiences range from single-family residences to largescale commercial asset acquisition. With a knack for finding mortgage solutions, he specializes in working with veterans of the Armed Services and VA loans. Christopher believes in solving problems based solely on the needs and motivations of his clients. A student of real estate for the majority of his life, Christopher has leveraged his education, experience and exposure to yield a full spectrum of service to past, current, and future clients. A robust construction background provides the foundation for his understanding of property value, which assists his clients in achieving maximum appreciation of primary, secondary, and investment properties. Educated by family with 30-plus years of originating experience, Chris provides a lifetime worth of knowledge and experience to each of his clients, while not yielding in the energy department. Chris, tell us about yourself and your career. Christopher Griffith: My goal is to help the average person accomplish the greatest opportunities of their life, in the most financially efficient way possible. We do this by focusing on the lowest common denominator to establishing and growing wealth in America … the primary home residence. I understand you are a Broker now after previously working as a Banker. What else motivated you to make the change? I needed to be able to offer the best pricing and most optionality, while never considering my own needs and motivations first. Bankers cannot say this. They have an idea of what’s “BEST” for you before you ever speak with them. What would you say so far are the biggest differences you’ve experienced coming from the retail side since you were a Broker before? My team and I are happy again. We are helping every person we connect with (not just some), and we have never seen a growth rate like we are experiencing now, even in Denver during 2012-2016. Just in the first six months of operations, we’ve closed more than $8 million in new loans and our goal is to press toward the $50 million mark in 2019.

How would you compare pricing when compared to the Mortgage Banker world? I wouldn’t. For the most part, there is no comparison … wholesale is better. Some products are still best served by bankers as their main motivation for ‘acquiring’ the client as much more to do with their assets and deposits. For depositories, the home mortgage is basically ‘bait’ to bring you into their economy. As a veteran, how do you feel about interest rates and pricing discrepancies retail versus wholesale on the VA benefit? It sickens me each time we save a veteran one percent or more simply by offering brokered products and pricing. We call this a #BigBankBreakup or a #BuildersLenderBreakup; two of the most common abusers of veteran benefits and interest rates. What are you seeing in your local market on trends, inventory and consumer/Realtor mortgage education? “Affordability” is Debt Does Deals’ 2019 “Word of the Year” for a reason. Buyers should focus on smaller metropolitan and suburban job and population growth, where the inventory available is affordable. Individuals and corporations alike will be seeking cost savings over the next 36 months, forcing them to consider moving from California to Texas, or from Dallas to Sherman, or Austin to Roundrock. 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? When you have 24-hour underwriting and condition turn times weekday-through weekend, better pricing, and direct numbers and access to the departments working on the file, I’m unsure this myth is substantiated anywhere other than in the past … with Calyx and donut boxes. What would you say are your best forms of marketing today to generate new business? Organic original content on social media. Even with zero dollars directed to marketing, lead growth is actually becoming problematic for operations. 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.

new to market

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rescoring fees by finding plans that require fewer account actions. â&#x20AC;&#x153;In todayâ&#x20AC;&#x2122;s market, lenders are facing diminishing loan volume and low pull-through rates,â&#x20AC;? said Dave Chung, Co-Founder and Managing Director of CreditXpert. â&#x20AC;&#x153;With CreditXpert Wayfinder, LOs donâ&#x20AC;&#x2122;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.â&#x20AC;? PennyMac Debuts HELOC Product

Your turn National Mortgage Professional Magazine invites you to submit any information promoting new â&#x20AC;&#x153;nicheâ&#x20AC;? loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

Health of Communities with Government Relations & Inffrastructure fr Creates

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n National Mortgage Professional Magazine n FEBRUARY 2019

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NA " " " " " ! " " our data analyticss, media engagement, connections " " " " " " ! " ers across the housing ecosystem, and involvement in government leg gislation, drives our ability to facilitate greater returns on n communities, helping them thrive and be sustainable forr generations to come.

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PennyMac Financial Services Inc. is now offering a home equity line of credit (HELOC) product through its subsidiary PennyMac Loan Services LLC. According to the Westlake Village, Calif.-based company, HELOC applications are being accepted from PennyMacâ&#x20AC;&#x2122;s current customers in California, Florida, Oregon, Virginia and Washington, and the product will be rolled out to more states during the year. The company plans to expand the product to prospective customers who do not yet have a lending relationship with PennyMac. â&#x20AC;&#x153;We are excited to announce PennyMacâ&#x20AC;&#x2122;s entry into the HELOC segment of mortgage finance,â&#x20AC;? said Doug Jones, PennyMacâ&#x20AC;&#x2122;s Chief Mortgage Banking Officer. â&#x20AC;&#x153;We believe this is the right time to introduce this product to our customers who have seen the equity in their homes increase and want to keep their current first-mortgage interest rates. By taking this step, PennyMac becomes the only major non-bank lender to directly offer this opportunity for customers to tap into the equity in their homes with a simple, flexible line of credit. We expect our leading market position and operational capabilities to help fuel our HELOC production activities.â&#x20AC;?

Rate Secured, a program designed to lock eligible borrowers into an interest rate for 90-days after engaging with the lender, whether or not they have already selected a property. According to the Nashvillebased company, the Rate Secured program also enables to reset the rate for another 90 days if they donâ&#x20AC;&#x2122;t locate a property during the initial 90-day period. Also, the program will allow an adjustment to a lower rate a

closing if interest rates should decrease during the lock time. â&#x20AC;&#x153;In todayâ&#x20AC;&#x2122;s rising interest rate environment, buyers are more hesitant to enter the market and are appropriately cautious towards any future changes,â&#x20AC;? said Mike Hardwick, founder and president of Churchill Mortgage. â&#x20AC;&#x153;Through Churchillâ&#x20AC;&#x2122;s Rate Secured program, we are empowering borrowers to better plan their home searches by eliminating any surprises relative to their financingâ&#x20AC;&#x201C;all of which helps ensure a smarter mortgage process and better borrower experience.â&#x20AC;?

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A SPECIAL FOCUS ON

Non-QM: Th

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The Growing Market Why You Should Be Doing Non-QM and How to Choose the Right Lender By Tom Hutchens

on-QM type loans were completely unavailable post-crisis. When we started in 2011, mortgage professionals worried it was risky. There were people who said they would never touch it and those who sat back and waited to see what would happen. Pioneers who knew these loans were the answer to a thriving mortgage industry believed in it enough to move past the negative stigma. The reason? The simple fact that there is a significant population of people who can prove the ability to repay a home loan who cannot qualify based on conventional guidelines. Self-employed, Millennials, jumbo borrowers and those who recovered from a credit event can be worthy borrowers financially responsible to take on a mortgage. Without serving these people, the mortgage industry cannot thrive. This is most likely why non-QM is the only segment in the mortgage industry reporting gains in volume month over month and year-over-year. Angel Oak Mortgage Solutions crushed it in 2018, offering nonQM products. These mortgages were good, solid performing loans. According to FitchRatings, “Of the $4.3 billion and roughly 11,000 loans securitized since 2015 where loan-level performance data is publicly available, only eight loans have entered foreclosure.” For an Originator who has not offered non-QM, it would be a mistake to think you might not be able to make it work for a borrower and end up with a bad experience. The risk of a bad reputation in this challenging market is one no one wants. Choosing the right lender is crucial then to avoid that negative scenario. One huge benefit of nonQM is helping borrowers close on a loan they didn’t think was possible. In many

cases, non-QM saves the day for Realtors and referral partners working with borrowers who cannot purchase a home with a traditional loan product. Many Originators are overwhelmed with the response they receive after helping someone buy a home using a non-QM product. Referrals flood in and they come to be known as the resourceful Originator who makes it happen. There is a loan option for most scenarios out there. It is simply a matter of working with experts in the non-QM space to guide you through it. Non-QM brings tremendous opportunity! We cannot stress that enough. It’s time now to turn and focus on the lender who can offer guidance and help you grow your business. The most important factor when utilizing non-QM is working with the right lender. As stated before, many companies are offering non-QM, but not all are reporting growth in the space. Choose a lender who has dedicated years to getting it right. Here is a checklist of must-haves when choosing a non-QM lender: 1. A solid background in non-QM. Angel Oak Mortgage Solutions pioneered the resurgence of non-QM, educating Brokers and the public about the benefits of these loans going on six years now. A full, vertically-integrated firm that works closely with the investors and with affiliated companies securitizing their loans is a huge benefit. Find out how much of their business is repeat. Those companies with customers who keep coming back means they have closed loans with success and can count on a positive experience again. 2. Resources and tools to help promote your business. For instance, we offer our clients customizable materials to brand using their own company logo. Webinars and videos educating on best practices are extremely helpful. A streamlined process to meet closing dates is essential. Our company now has a bank statement review team that completely reviews statements, analyzes deposits and calculates income for bank statement submissions. continued on page 58

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why you should be doing non-qm

3. Common sense underwriting. Safety in lending standards is extremely important. Find out if the lender looks at loans individually and reviews all documentation. Commitment to this detail and taking the time necessary results in strong performance and minimal defaults. Discuss risk retention with a lender to find out how strong their incentive is for the loan to perform. If they plan to retain the loan, then underwriting and approval will go through a prudent process with proper due diligence for optimal performance. 4. Innovative loan products. The reason to add non-QM is to meet the demand for borrower’s unique circumstances. A lender with an array of product offerings serving the self-employed,

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continued from page 57

jumbo, non-prime, property investors and those recovered from a past credit event will add to your bottom line and increase referrals. 5. Proven record of success. Numbers tell a story. Work with the companies everyone else is trying to catch up to and emulate, one with consistent gains month-overmonth and year-over-year and is getting it right. When it comes to your livelihood and growing your business, work with those with a consistent increase in performance. The market in 2019 carries the same challenges as last year, including decreased incentives for borrowers to refinance due to rising interest rates. The question really isn’t why anyone should add non-QM, but how best to quickly utilize the products to ensure business growth. Not

participating means missing an opportunity to issue good loans to qualified buyers. The market has not dried up. It is plentiful with many people requiring nonQM. The only difference being is that it falls outside the definition of QM. The best thing for an originator to do who is still on the fence is to have a discussion with a trusted non-QM lender. Don’t make the mistake of working with those who recently jumped in trying to replicate the success of pioneers in non-QM. Why would you work with anyone but the best in non-QM? Attend lender Webinars like the

monthly Webinar we host the first Wednesday of every month on how to use non-QM to grow your business. Register for trade shows with non-QM lenders in attendance. Ask other mortgage experts in your market about their experiences with non-QM. The mortgage industry witnessed significant growth in the non-QM space in 2018. The great news is that it is still just the beginning, and 2019 is poised for exponential growth. Anyone asking for options for the best potential to grow in 2019 should get into non-QM right away. Stop reading about other’s success in non-QM and missing out on business that could have been yours. If you aren’t utilizing non-QM a crucial tool is missing to help you get the job done for borrower’s needing your help.

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) 539-4910 or e-mail Info@AngelOakMS.com.

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Non-QMs … Getting to “Yes” in 2019 he big question for mortgage lenders in 2019 is how to originate more residential loans when the industry is not expected to grow. One answer is to take a second look at the millions of Americans who may have been frozen out of the marketplace in today’s relatively tight lending environment. The Urban Institute estimates that 6.3 million borrowers who would have historically qualified for a loan were unable to get one between 2009-2016 because lenders were unusually riskaverse. There’s been a quiet revolution in American lending. Borrowers are more focused than ever on bill paying and credit standing. The result is fewer delinquencies, less risk, and new opportunities for mortgage lenders.

By Ray Brousseau

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l The October delinquency rate hit 4.1 percent according to CoreLogic, the best October in at least 18 years. l Fair Isaac says the average credit score reached a record 704 last year. l Serious mortgage delinquencies stood at 1.62 percent in the fourth quarter according to TransUnion, down from 6.65 percent a decade earlier. On the other hand, rising interest rates and higher home prices are limiting borrower options, keeping homeownership off the table for many. The National Association of Home Builders (NAHB) estimates that 127,560 households are priced out of the housing market each time the median new home price increases by $1,000 nationwide. In a similar vein, Lawrence Yun, Chief Economist with the National Association of Realtors (NAR), calculates that 35,000 home sales are lost each time mortgage rates increase by 0.10 percent. These numbers tell us we need to re-think the mortgage marketplace. There’s no shortage of financing options–

“Today’s non-QM financing is in no way related to the toxic loans widely marketed before the housing crash.”

and lender competition–for the growing pool of well-qualified borrowers with first-rate paperwork and top-notch credit. But what about borrowers with low credit scores, high debt-toincome ratios, and documentation from jobs in the growing gig economy? What about jumbo loan borrowers? To serve an array of borrowers, lenders need to be diversified, and that means offering both Qualified Mortgage (QM) and non-Qualified Mortgage (nonQM) financial products. Today’s non-QM market Ten years has passed since the housing crisis hit the economy in 2008, and non-QM products are finally making a comeback. Non-QM products are a way to expand the credit box to help borrowers who don’t fit within the tight confines required for QM. Today’s non-QM financing is in no way related to the toxic loans widely marketed before the housing crash. You won’t find no-doc financing. There aren’t any gotcha clauses.

Instead, non-QM products must conform with Ability-to-Repay (ATR) regulations, as well as other lending guidelines. “Even if a loan is not a qualified mortgage,” said the Consumer Financial Protection Bureau (CFPB), “it can still be an appropriate loan. You can originate any mortgage (whether it is a QM or not) as long as you make a reasonable, good-faith determination that the consumer is able to repay the loan based on common underwriting factors. You can continue to rely on your sound, tested underwriting guidelines that you have used in the past to make loans that have generally performed well, as long as you document the information you consider.” Why offer non-QMs? Non-QM financing is not a big part of the mortgage marketplace. Mike Fratantoni, Chief Economist with the Mortgage Bankers Association (MBA), estimates that non-QM financing represents about two percent of the mortgage

marketplace, a small percentage but one that’s growing. The catch is that mortgage marketplace is huge. According to the Mortgage Bankers Association, originations in 2019 should total $1.63 trillion, about the same as the $1.64 trillion seen in 2018. Two percent of such originations equals almost $33 billion. Carrington, for its part, has originated more than $300 million in non-QM products since it entered this sub-market during the second quarter of 2018. For lenders in the non-QM space there’s limited competition. Among banks, a survey by the American Bankers Association (ABA), published in 2018 found that 28 percent of its members simply don’t offer nonQM options. Non-QMs are attractive to market for reasons beyond limited competition: l First, there’s growing real estate equity to finance and refinance, some of which is held by owners who are tough to finance within QM limitations. Think of the selfemployed or those looking for jumbo loans. l Second, between student loans, auto financing, and credit cards, many borrowers have trouble meeting debt-toincome requirements and yet pay their bills. Non-QM products can often help such borrowers. l Third, if you’re in the mortgage business, you don’t know who will walk in the door. Without a range of financial offerings, you’ll only be able to compete with the blandest options: The same vanilla loans offered by just-about everyone else. NonQM products can give you a competitive edge. Referral partners Lenders with an array of non-QM options, such as Carrington, are actively looking for referral partners. To be successful, retail lenders need to understand how non-QM financing works and the steps necessary to avoid excess risk. We first run all borrowers through automated systems and

GROWING MARKET a special focus on NON-QM: THE GROWING MARKET a special focus on

For lenders the marketplace is like playing golf. Nobody goes to a course with just a putter, you need a variety of clubs. In a similar sense, lenders are most competitive when offering both QM and non-QM options. With a

diversity of products you have the greatest chance of getting to

“yes” and after all, would you want to be anywhere else?

As President of Carrington Mortgage Services, Ray Brousseau is responsible for overseeing all aspects of Carrington’s lending and servicing businesses, from origination through fulfillment, as well as servicing operations, for the fast-growing enterprise. Under his leadership, both Carrington’s full-service mortgage lending business with wholesale, retail and centralized sales and operations, as well as its high-touch specialty servicing businesses have experienced unprecedented growth and operational results. Ray has nearly 35 years of experience in the mortgage banking and consumer finance industry.

n National Mortgage Professional Magazine n FEBRUARY 2019

l There are cases in which self-employed applicants have trouble documenting income. Rather than automatically declining a loan, and rather than requiring only IRS tax documents, why not see if alternative income documentation is available such as 12 months of personal bank statements and 24 months of business bank statements? l Why make program and rate decisions dependent on the lower of primary or coborrower credit scores? Why not look at the primary wage earner’s credit standing? That’s the person who will make repayment happen. l Credit scores are not income dependent. We can find low wage earners with terrific credit and applicants with big salaries and poor credit. How about financing

for someone with a credit score in the 500s who needs $1 million? With a 70 percent LTV there’s non-QM financing which can be considered for jumbo borrowers.

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then turn to manual underwriting when dealing with potential non-QM borrowers. We use this two-step system because we want to ensure borrowers are introduced to the right product. With automated systems, we can first see if an applicant qualifies for FHA, VA, or conforming products. If yes, we go in that direction. If not, we look at non-QM options. We use manual underwriting, because we want to know the borrower. Like us, they have their ups and downs; and they’re more than the sum of their printouts. If the circumstances are right, applicants who might be denied standardized forms of financing may well qualify for non-QM options. Also, you don’t see a lot of significant changes with most financing options. In the nonQM world, the story is different. Products and standards change every day. You have to watch the market carefully, to engage in what we call “industry surveillance.” We love computers, databases, and artificial intelligence, but as good as modern technology is–and it’s very good–the goal is to match the right borrower with the right product. As a result, we often manually underwrite non-QM applications. For example:

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Innovative Loans Serve a Growing Niche of Borrowers By Rick Arvielo

oday, the demand for non-QM loans is on the upswing, fueled by a transformation in the country’s workforce as well as a growing segment of borrowers who have unpredictable influxes of cash–not to mention those individuals with substantial assets on hand, but who have non-traditional income verification. The mortgage market is indeed changing, and borrowers whose proof of income and ability to repay fall squarely within Fannie Mae/FHA standards are becoming less and less commonplace. What is indeed growing is the non-QM market, an underserved segment of niche borrowers whose situations are atypical compared to those of most homebuyers. While the non-QM market has been generally underserved, lenders are now beginning to identify these groups as a targeted opportunity. The challenge is, a non-QM loan is often misunderstood as being inherently high-risk or sub-prime. It’s neither. It’s basically a loan that doesn’t fit into the rules associated with a standard Qualifying Mortgage. We’ve taken a different tactic at New American Funding. First off, our non-QM product is proprietary, and we work through an exclusive arrangement with a partner bank to fund non-QM loans. Our aim is to make loans at market rates, and if it comes to an out-of-the-box loan that requires a slightly higher interest rate, it must be very reasonable. So, our bank has solidified a relationship with us in which we can meet the needs of credit-worthy borrowers who aren’t being well-served. We really started to go through the buckets to determine the borrowers who comprise this growing market and developed underwriting guidelines to meet their needs as well as provide them with the rates that they deserve.

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Here are four that comprise that exponentially growing nonQM market. The wage-surge worker These are typically highly-skilled, specialty workers who run the gamut of professions, including programmers and analysts—to artists, musicians and professional athletes—whose incomes take the form of lump sums and signing bonuses. There are a lot of homebuyers in certain geographies, like Silicon Valley and other techdriven areas, where money is earned differently from the way it used to be. Workers bounce from company to company, hauling in good money and then not working for a long time. Oftentimes, they don’t work simply because they choose not to. They may take off the winter for snowboarding or volunteer for a month to do humanitarian work. That’s the Millennial Lifestyle. These individuals may make more salary in a short time than they would as a company’s permanent employee; however, they cannot show a constant income stream. So, it’s more about the gap in income than anything else, because that’s something that just doesn’t play well with the underwriting engines at the government agencies who require a steady proof of income. As for athletes, they may get sizeable signing bonuses, but still make relatively nominal incomes the rest of the year, if any. They join with a team to fill a roster spot, then experience an extraordinary surge of income. Just as fast, they may be released. As far as Fannie and FHA are concerned, all that’s seen as irregularity of income. With a non-QM loan product, their surge in income can be recalculated to give them credit for having earned that money regularly over time. The self-employed Self-employed, or sole proprietors, who operate their own business, such as plumbers, hairdressers, pool cleaners, house cleaners, gardeners, etc., likely run a lot of their personal

expenses through their businesses, so everything is generally comingled together. Unfortunately, that doesn’t work for a typical underwriting engine. For instance, let’s say a business owner makes $200,000 a year and writes off $170,000 of it; because that owner can take advantage of certain write-offs that a typical W-2 employee can’t, what’s left is $30,000. With that $30,000, their DTI may be too high to qualify for a traditional home loan. With a non-QM loan, a formula is used to determine how their finances can be calculated into a monthly income to get approved for a loan. The well-heeled The third, and often overlooked, niche in the non-QM market is comprised of those individuals who have significant assets on hand but little or no income. If that buyer is retired or working a relatively low-paying job with a couple million dollars in the bank, it’s not easy to finance a house because they lack a qualifying or steady income. Let’s say that a potential borrower makes $5,000 a month—yet has $500,000 in the bank left to them by a rich uncle. While he or she may want to buy a $400,000 house, that borrower doesn’t want to touch such a sizeable nest egg. However, on $5,000 a month, buying the house is just a pipe dream. With a non-QM loan, on the other hand, a combination of income and the asset depletion can be calculated to get approved.

In this case especially, it’s important to educate business partners such as financial planners, Real Estate Agents and CPAs about non-QM loans. They can help their clients understand that buying a house doesn’t mean depleting their savings or asset portfolio. From an opportunistic standpoint, financial planners and the like are important to reach because it is also in their best interest to help buyers hold on to their wealth, so it can be managed. The move-up buyer There is a fourth niche called the Move-Up Buyer. Let’s say a homeowner wants to sell their current house to buy another. If the buyer finds a new house before selling the old one, under the Fannie/Freddie guidelines, the payment for both houses is included in the buyer’s DTI. Based on this complication, a lot of borrowers won’t qualify. With a non-QM product, the payment on their current residence can be excluded for qualifying purposes. Maybe the borrower wants to rent out their previous home. Maybe they want to wait until the market improves. Maybe they don’t want to sell at all. Maybe they want to sell it at their leisure. This opportunity gives borrowers the flexibility to buy that new home without having to sell their current residence. For the most part, there are a few players in the industry who know how to serve these niche borrowers, but the rank and file don’t. And most lenders haven’t fully tapped into the fast-growing non-QM market, having focused primarily on middle-of-the-road lending, where most qualifying borrowers are found.

Rick Arvielo is Chief Executive Officer at New American Funding. Rick’s proven formula of marrying marketing and proprietary technology to grow businesses from the ground up has led to the growing success of New American Funding. Rick leads approximately 160 branches and approximately 2,800 employees with the goal of providing unparalleled service and mortgages at competitive rates, helping individuals fulfill the American dream of owning a home.

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Is Non-QM the Future of Mortgage Lending? By Jeff Schaefer

nder the weight of rising rates, limited inventory and tight credit guidelines, 2018 was a challenge for borrowers and traditional mortgage lenders alike. But, given these challenging conditions, we estimate nearly $200 billion annually in unmet borrower demand exists. That may seem like an optimistic forecast, but there is plenty of evidence to suggest that non-QM is a significant opportunity for lenders seeking to grow and diversify their origination channels. With millions of creditworthy but underserved borrowers, an everexpanding range of responsible programs, and an active investor community, the growing confidence around todayâ&#x20AC;&#x2122;s nonQM seems well-founded. Here are six reasons to make

the case that non-QM is the future of mortgage: 1. Traditional mortgage growth is slowing Fannie Mae has lowered its 2018 mortgage origination volume estimate to $1.689 trillion, a 7.5 percent drop from 2017.1 Much of this year-over-year volume drop is due to a major plunge in refi activity, to the lowest level in a decade.2 The number of refinance loans purchased by Freddie Mac through June 2018 is down 28 percent compared to the same period in 2017.3 Lenders are experiencing shrinking margins due to rising rates and increased competition from traditional and nontraditional competitors. These competitive realities, along with decreasing volumes and rising interest rates, have led to the mortgage industryâ&#x20AC;&#x2122;s lowest profit margins since 2008.4

Many industry observers also expect increasing consolidation among non-bank mortgage companies looking for economies of scale to offset costs associated with technology investment and regulatory compliance. Nonbank lenders that have higher funding costs and fewer origination channels than larger banks are more susceptible to the ups and downs of traditional mortgage cycles. 2. Growing non-traditional mortgage demand Credit has remained historically tight for the past decade. Many creditworthy borrowers are becoming aware that attractive loan options are available, even though they fall outside conventional and government loan options. While non-QM loans amount to about three percent of the market, there

currently is more activity than ever in the non-QM space, according to HousingWire.5 Verus Mortgage Capitalâ&#x20AC;&#x2122;s own research indicates that thereâ&#x20AC;&#x2122;s more than $200 billion annually in unmet demand from creditworthy U.S. borrowers who donâ&#x20AC;&#x2122;t fit in the conventional or government credit box. 3. Robust non-QM secondary market and loan performance Unlike sub-prime loans of the last decade, todayâ&#x20AC;&#x2122;s residential non-QM loans are carefully underwritten and extensively documented. That is one reason why top industry investors continue to show an appetite for non-QM. Based on Invictus estimates, of the roughly 27,000 loans securitized since 2015, only three loans are currently in foreclosure, and five loans have

FEBRUARY 2019 n National Mortgage Professional Magazine n

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GROWING MARKET a special focus on NON-QM: THE GROWING MARKET a special focus on

been previously liquidated through foreclosure.6 Several non-QM investors recently have marketed large securitizations. In fact, we recently completed our eighth rated RMBS (residential mortgage-backed securities), including two over $400 million in size.

l Overall, 1/3 of Millennials don’t meet the traditional credit requirement of 620.9 l Although 77 percent of Millennials who have a mortgage have prime scores

l Alternative document programs such as bank statement loans appeal to selfemployed individuals.14 l Credit-impaired programs are attractive to the 18 percent of borrowers who fall into the 580-669 FICO range.15 l Near-Miss Jumbo Prime programs are attractive to the large population of expanded credit borrowers living in highpriced markets where GSE loan size limits are restricting credit. Innovative non-QM programs for renovation professionals, foreign nationals and residential real estate investors now enable lenders to serve these potentially profitable niche markets. Interestonly programs are attractive options for borrowers who prefer financing that allows them to maintain cash reserves. In addition, many non-QM originators are adding programs featuring higher loan limits and LTVs, to further expand the pool of potential borrowers. A key to future success Borrower demographics, including self-employed,

“One of the biggest complaints leveled against the mortgage market is that the deck has been stacked against the self-employed, simply because it’s more difficult to prove a steady, taxable income without W-2s and regular paychecks. “ 65 investors, and foreign nationals, will continue to evolve and become more diversified. As an industry, we need to realize that the people we consider traditional borrowers–and the way they fit into traditional

credit box–is rapidly changing. As an industry, I believe that meeting the emerging demands of nontraditional borrowers with innovative programs and high service levels is a key to success in the future.

Footnotes 1—NationalMortgageNews.com/news/fannie-mae-cuts-origination-forecast-againamid-tepid-home-sales-outlook. 2—CNBC.com/2018/04/11/mortgage-refinances-fall-to-the-lowest-level-in-adecade.html. 3—ScotsmanGuide.com/News/2018/08/GSEs-finance-fewer-loans-in-2018-at-midway. 4—MCT-Trading.com/what-caused-margin-compression. 5—Housingwire.com/blogs/1-rewired/post/42715-reasons-to-be-optimistic-about-thefuture-of-non-qm-loans. 6—Data from Intex as of 10/25/2018. Population includes loans originated from Q2 2014 to Q3 2018 included in 37 Non-QM securitizations. 7—TheMReport.com/daily-dose/06-15-2018/is-this-the-right-time-for-non-qm-lending. 8—BLS.gov/careeroutlook/2018/article/self-employment.htm. 9—JCHS.harvard.edu/sites/default/files/son_2015_key_facts.pdf. 10—NAR.realtor/newsroom/millennials-lead-all-homebuyers-even-as-some-can-tescape-their-parents. 11—MPAMag.com/market-update/millennials-need-to-change-borrowing-habits-saysexperian-109624.aspx. 12—CA.Finance.Yahoo.com/news/why-millennials-no-longer-think-211621381.html. 13—Zillow.com/research/student-debt-homeownership-10563. 14—WP.Zillowstatic.com/31/ZG_CHTR_2017_FINAL-53c1e5.pdf. 15—Experian.com/blogs/ask-experian/credit-education/score-basics/521-credit-score.

Jeff Schaefer is Executive Vice President—National Sales at Verus Mortgage Capital, a full-service correspondent investor offering residential non-agency lending solutions. He can be reached by e-mail at JSchaefer@VerusMC.com.

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5. The future of mortgage: Millennials and beyond There are also reasons traditional lending guidelines seem out of step with today’s borrowers. For example, NAR reports show that Millennials (born from 1981 to 1997) have been the most active generation of homebuyers for the past five years. Millennials bear watching because of their sheer numbers– they are expected to form 20 million new households by 2025. Because Millennials are the first “digital native” generation of homebuyers, we cannot expect them to serve them effectively with traditional loan programs.8 Here are some interesting data points about Millennials and homebuying:

6. Innovative and expanding programs A growing number of quality nonQM loan programs for borrowers that don’t fit conforming guidelines are emerging, enabling lenders to serve a wider range of prospects. People buy properties for diverse reasons, and they should not be penalized because they don’t fit traditional guidelines.

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4. The changing workforce One of the biggest complaints leveled against the mortgage market is that the deck has been stacked against the selfemployed, simply because it’s more difficult to prove a steady, taxable income without W-2s and regular paychecks. The so-called gig economy is driving new demand for alternative documentation programs. With increasing numbers of self-employed contractors, consultants, and a variety of small-business owners, traditional credit guidelines are failing to keep pace with today’s nontraditional workforce. The U.S. Bureau of Labor Statistics estimates that there were about 16.78 million selfemployed workers in 2016. Many forward-thinking lenders already offer non-QM programs tailored to the needs of the growing percentage of the U.S. workforce that doesn’t receive a traditional paycheck.7

or better,10 just 39 percent of Millennials without mortgages have prime or better credit scores.11 l Millennials were responsible for 42 percent of all new home purchases in 2017.12 l Challenges in getting a mortgage reported by Millennials include insufficient credit score or history, downpayment and closing costs, monthly payments and DTI. l Despite widely reported challenges, student loan debt may not be a significant obstacle to home ownership. A Zillow study found homeownership increased with education levels, even as student debt increased.13

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Non-QM Success Begins With Education … Starting With You By Raymond Eshaghian sk anyone who grew up in the 1970s about “Schoolhouse Rock,” and you’ll be sure to bring a smile to their face. These short, animated, educational short films were a big hit among young TV viewers. The show’s intro also gave birth to a popular catchphrase–“Knowledge Is Power!” In the years since, this phrase has become almost a cliché. However, it conveys a basic truth that’s highly applicable in our industry today. By now, you’ve probably heard about the surge of non-QM loans. Many lenders, banks and Wall Street investors have thrown their hat into the non-QM space with non-prime offerings to increase business, especially with interest rates expected to rise and lender profits being squeezed. It’s only natural to seek out new ways to grow business if traditional ways or loan products are no longer producing the same results they used to. That said, our industry’s collective knowledge about nonQM loans remains lacking, which is reflected in the relatively low number of borrowers obtaining non-QM financing even though they could qualify. This could be fixed if originators took the time to truly understand non-QM products and became educated on the types of borrowers who benefit from these loans. But it’s not too late.

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Dispelling the myths about non-QM The QM rule, put into action in January 2014 by the Consumer Finance Protection Bureau (CFPB), provides mortgage lenders with certain liability protection when originating Qualified Mortgage (QM) loans. Essentially, the rule allows lenders to make home loans that conform to certain guidelines with less fear of buybacks, lawsuits and financial loss. To someone not familiar with the term “non-QM,” they may immediately relate this to “subprime” loans, which played a contributing role of the market crash in the mid-2000s. This connection is likely more prevalent among consumers, but many others involved in the housing and

“…our industry’s collective knowledge about non-QM loans remains lacking, which is reflected in the relatively low number of borrowers obtaining non-QM financing even though they could qualify.”

finance process, such as referral partners, may not understand the difference between sub-prime and non-QM, as well. After all, a mortgage that is not “Qualified” sounds kind of risky. But because they are viable loan options, it’s important for lenders and Loan Officers to properly educate their referral partners and borrowers on what non-QM means. Unlike the sub-prime loans that had loose credit standards and led to increased foreclosure activity, non-QM loan underwriting is very scrupulous. Non-QM loans must still abide by the Ability-to-Repay (ATR) rule, which consists of putting borrowers in a new loan with payment terms that are affordable and conservatively calculated based on their income history within the last 24 months. However, it is a common mistake for originators to use the loan-to-value (LTV) as a compensating factor when evaluating the viability of a loan. The truth is it’s completely irrelevant to the income analytics and the borrower’s ability to repay. This is where non-QM products

can really help those that are more than qualified to make their monthly mortgage payments, but may be rejected because they do not meet traditional mortgage standards. Opportunities begin with education People are instinctively distrustful of things they don’t understand. So in order to educate borrowers, real estate agents and others about non-QM products and the many opportunities these loans can bring to the table, originators themselves must become knowledgeable of the products and the types of borrowers they benefit. The fact is there are a wide range of qualified loan options available from non-agency wholesale and correspondent lenders, but all too often borrowers end up being turned away because they fall outside QM parameters. On the other hand, originating loans that most lenders don’t make—such as nonQM products—can provide the opportunity for a lender to carve

out a niche for themselves. And with the right approach and a good wholesale partner, they can even increase their business by focusing on helping more challenging borrowers obtain non-QM financing. Not only can this help expand a lender’s business, but it’s also doing good by helping some well deserving borrowers who are often turned down and left behind. It’s imperative for originators to discuss non-QM with real estate referral partners as well, so they know the options that exist for their clients. While someone who is thinking of buying a home should always first speak to a lender to see what they qualify for and available loan options, they often see a house they like and meet with the real estate agent first. While many real estate agents are advised not to give advice on financing options, the fact is that many potential homebuyers will discuss their financing situation and any loan qualification issues they face with their agents. So, generally speaking, it’s a good idea to make sure Realtors at least understand these loans exist and how they work. That way, an agent can be in a better position to help or refer their client to a lender with non-QM expertise so the homebuyer can be properly educated. Another important point to keep in mind is that, as referral partners, real estate agents often pass along a lender’s contact information to their clients who may be interested in non-QM options, which generates more business. The more agents you educate about non-QM loans and your ability to help finance borrowers in unique situations, the more frontline advocates you’ll have, and the more likely your referral business will expand. Tapping the growing number of products and benefits Today, there are a wide number of non-QM products available to handle many difficult borrowing situations, from self-employed borrowers to those who recently emerged from foreclosure to those who don’t even have Social Security Numbers. Every scenario is different, but what’s surprising is how many of these borrowers are more than capable of making monthly mortgage payments, even if they don’t qualify for QM financing. The key to taking advantage of all these non-QM options is having a wholesaler with access to them. The best non-QM wholesalers offer innovative approaches to help

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mortgage professionals find and work with underserved yet wellqualified borrowers and come up with loan programs for just about any scenario. Who is a great candidate for non-QM loans? Generally speaking, it could be anyone who has ever applied for a conventional or government-insured loan but was turned down for one reason or another. Here are some descriptions of borrowers who are prime candidates for non-QM products:

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l Self-employed borrowers. These folks generally have fluctuating income or multiple income streams. Since these borrowers typically don’t receive regular paychecks for the same amount, it can be hard for them to qualify under traditional mortgage guidelines. However, many self-employed borrowers can get bank statement loans, which are based on cash flow and liquid assets. l Real estate investors. Borrowers in this group usually need quick financing in order to buy homes that they plan to flip or rent out to generate income. No-income loans are a good fit for these investors. And because they will flip or use the rental income to repay the mortgage, they are exempt from the Ability-to-Repay Rule. l Prime borrowers. A borrower can have great credit, but may still want a loan with unique features, such as interest-only payments. Prime borrowers may also have a debt-to-income ratio limit above the standard 43 percent, even though their credit is stellar. l Near or non-prime borrowers. Many borrowers have insufficient credit, a prior bankruptcy, or a distressed property sale within the last two years. However, they may have other factors that make them a worthwhile credit risk. Qualifications vary between lenders, but generally all income and assets must be documented to prove ability to pay and mitigate the credit risk. l Foreign nationals. These are non-resident borrowers who want to purchase property in the U.S., but might not qualify under traditional guidelines because of low credit scores— or possibly because they have no credit score at all. International credit reports and

letters from creditors may be provide proper legal idea for all originators to do their used by non-QM lenders to help documentation and tax returns. due diligence and become familiar qualify these borrowers. with non-QM products—and then However, it helps if these As more lenders will turn to the be ready to pass this knowledge borrowers have a high income, non-QM loans this year to provide along to borrowers and referral strong liquid assets and ability new products to help nonpartners. Once they do, the results to make a large downpayment. traditional borrowers, it’s a good could be very powerful indeed. l ITIN borrowers. These folks live and work in the U.S. legally, are Raymond Eshaghian is President and Founder of Greenbox contributing members of Loans Inc., a wholesale lender specializing in non-QM/nonsociety, and even pay taxes— prime loans. Eshaghian has more than 28 years of yet they are not eligible for experience in mortgage lending in executive or principal Social Security Numbers. To roles. He can be reached by e-mail at qualify, these borrowers must Raymond@GreenboxLoans.com.

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Not All Non-QM Loans Are Created Equal By Mike Derstine

hen the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in 2010, it called for the creation of the Consumer Finance Protection Bureau (CFPB) and established a legal requirement that lenders only make mortgage loans when the lender has made a “reasonable and good faith determination based on verified and documented information,” that the borrower has a reasonable ability to repay the mortgage. The CFPB was charged with crafting a rule that would define a Qualified Mortgage (QM). Finalized in 2014, the QM rule created a category of loans that shield a lender from legal liability under Dodd-Frank through either a “Safe Harbor” or “Rebuttable Presumption.” Broadly defined, QM loans are fully amortizing mortgages with terms up to 30 years, documented income and assets, and debt-to-income (DTI) ratios no greater than 43 percent, that are underwritten in compliance with Appendix Q to the QM Rule, which provides guidance on calculating debt and income. Lenders continue to have the option to originate non-QM loans, but they lose the legal protections of QM lending in the event a borrower claims the lender did not satisfy the Dodd-Frank responsibility to assess the borrower’s ability to repay the loan. Perhaps not surprisingly, lending in the QM market far outpaces that in the non-QM market. The primary distinction between the QM and non-QM markets is the 43 percent DTI cap on QM loans. Concerned that this DTI standard would have had a chilling effect on lending, the CFPB created a category of QM, commonly referred to as the GSE patch, for mortgages with DTIs above 43 percent, if those loans were eligible for purchase by Fannie Mae or Freddie Mac. The QM patch expires either seven years following the effective

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date of the QM Rule (January 2021) or when the GSEs exit conservatorship. Today’s non-QM market is largely driven by two distinct product lines: Loans with DTIs above 43 percent and with initial balances above the GSE loan limits (“jumbo high DTI loans”), and loans that do not comply with Appendix Q or do not satisfy the GSE patch like loans to borrowers with nontraditional income sources. The risk-characteristics of these two product lines are markedly different. Earlier this year, the CFPB issued a five-year look back at the QM rule as required by Dodd-Frank. The report provides a helpful assessment of the impact of the DTI cap on the jumbo loan market. Since the implementation of the rule in 2013, the proportion of loans with DTIs greater than 43 percent dropped in the nonGSE space as borrowers either modified the terms of their loans, selected lower-priced homes or deferred their purchase. The reduction also reflects a decreased willingness of lenders to originate above the DTI threshold. Within the GSE market, however, loans continue to be originated above 43 DTI with compensating factors. According to the CFPB report, the presence of compensating factors was often seen as an offset to the higher risk associated with a higher DTI. That finding is consistent with what Genworth Mortgage Insurance sees in its loan performance that the lack of layered risk is more predictive than a singular metric. This indicates opportunity to support more non-GSE lending above 43 DTI when compensating factors are present and refine the guidance on what constitutes meaningful compensating factors within the rule. The proportion of loans with DTIs above 43 percent that otherwise satisfy the QM definition have been growing since the correction after the last recession. In an October

2018 research note, the Urban Institute noted that nearly 20 percent of GSE-backed mortgages in 2017 had a DTI greater than 43 percent and that this is expected to grow further in 2018. The percentage above 43 DTI increases to nearly 50 percent for FHA and VA mortgages, while high DTI loans in bank portfolios average around 15 percent. For mortgage insurers, the majority of observations are within the GSE space, but the industry also insures loans above the GSE loan limits. When assessing performance of QM loans segmented by DTI, there is an observable increase in serious delinquency and default rates as DTIs increase, all else equal. For illustration purposes (in Tables 1 and 2) Genworth loans have been grouped into categories corresponding to lower or higher levels of

layered risk within each DTI category. A comparison of each row in Table 1 to its corresponding row in Table 2 shows that DTI is a differentiator of risk. When taking into consideration the presence of other risk factors, or compensating factors that mitigate risk, however, we see that there is more to the story. For example, low risk loans with DTIs greater than 43 percent in Table 2 (those having more compensating factors) perform about the same, or better than the total performance of the DTI less than or equal to 43 percent category in Table 1. Medium risk loans in Table 2 performed similarly prior to 2009 as the total performance of the low DTI category and while defaults are a bit higher since then, their performance through time is nearly equivalent to medium risk loans in Table 1. This tells us that while DTI matters, other risk attributes are a stronger indicator of ability to repay than DTI alone. Not only is this true for high

TABLE 1 Historical Claims + Delinquents as a Percent of Originations for Loans With DTI Less Than or Equal to 43 Percent DTI <= 43%

2001-2004

2005-2008

2009-2012

2013-2016

Low Risk Layering

Medium

12%

High Risk Layering

22%

Total

13%

TABLE 2 Historical Claims + Delinquents as a Percent of Originations for Loans With DTI Greater Than 43 Percent DTI > 43%

2001-2004

2005-2008

2009-2012

2013-2016

Low Risk Layering

Medium

13%

High Risk Layering

24%

Total

20%

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DTI loans with compensating factors, but also for low DTI loans with high risk layering. In Table 1, high risk loans that meet the QM cap for DTI perform worse than the total performance of loans with DTI greater than 43 percent as a category in Table 2. Said differently, there is nothing magical about 43 percent as the DTI cap under the QM rule. While DTI is an important risk differentiator, the bigger driver is either the presence of compensating factors (lowering the likelihood of default) or additional risk factors (increasing the likelihood of default). The “red flag” for higher DTI loans is the presence of layered risk. The findings regarding the impact of layered risk factors have implications for both the Non-QM and QM space. Firstly, it points to opportunities to support higher non-QM lending above 43 percent DTI, when appropriate compensating factors are present. Secondly, in reviewing

the rule, the CFPB might consider how to add additional guidance on meaningful compensating factors as an offset to higher DTIs. At the same time, the CFPB should be careful when focusing on averages when considering revisions to the QM definition. While on average, loans with DTIs above 43 percent perform worse than loans with DTIs below 43 percent, after differentiating for other factors, the opportunities and risks reveal themselves. Regardless of a loan’s status as QM or non-QM, lenders and risk managers need to be mindful of the need to underwrite loans and take into consideration both layered risk features and the presence (or lack) of compensating factors. Dodd-Frank’s mortgage lending provisions were intended to ensure that borrowers can not only obtain homeownership, but also sustain it over the term of their mortgage. Underwriting that seeks to evaluate a borrower’s ability to repay their

mortgage is an important foundational element to a safe and sound housing market. While simple definitions with singular loan attributes may have the benefit of being easy to implement, the market and regulators should keep in mind

the significance of compensating factors and risk layering, especially as the CFPB and others consider extending QM to loans above GSE loan limits and how to address the pending expiration of the GSE patch.

Mike Derstine is Chief Risk Officer at Genworth U.S. Mortgage Insurance, where he leads the Risk Management, Quality Assurance, Risk Modeling, Risk Audit and Enterprise Risk Management teams. The statements provided are the opinions of Mike Derstine and do not reflect the views of Genworth or its management. 69

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a special focus on NON-QM: THE GROWING MARKET a special focus on NON-QM: THE GRO

Automation in the Non-QM Sector By Brooke Mulder on-QM is a hot button topic in the mortgage industry right now. Every other article and blog post seem to tout the rise of non-QM. It seems everyone is either offering non-QM products or thinking about offering them. And why not? Only offering conforming loan products leaves money on the table, in a time when margins are compressing, and additional revenue could make the difference between staying open and closing up shop for many lenders. Non-QM loans are just mortgage products that don’t comply with the Qualified Mortgage rule but aren’t necessarily higher risk. Some examples of what makes a nonQM loan are interest only payments, Jumbo, 40-year terms or having a borrower whom is not a typical full-time W-2 employee. While non-QM loan production has been increasing, there have been estimates that the untapped non-QM market is as high as $200 billion per year. Lenders that don’t offer nonQM products don’t just lose the potential revenue from non-QM borrowers. Realtor partners may stop sending all referrals over if their buyers frequently need a non-QM product. It’s easier to send buyers to a lender the Realtor knows will be more likely to get most clients approved. When a loan officer or lender has worked so hard to get Realtor referrals, they need to make sure they don’t lose those partnerships to the competition. That opportunity cost can’t be overlooked. No matter how great the relationship is between an LO and her Realtor partners, the Realtors will start sending referrals elsewhere if the LO is unable to help their clients. Lenders looking to get into the non-QM market should focus on carving out a niche and not try to do everything and offer all possible products. Lenders should pick a niche based on what they have been seeing come in. Hopefully most

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lenders will have CRM data to analyze on the loans they weren’t able to fund and why. If they dig into the data, it should tell a story about what type of non-QM products are currently the biggest opportunity. For lenders wanting to begin offering non-QM, or for those that already do and want to be as successful as possible, the biggest area of focus should be on automation. Automation options for agency products are plentiful these days. However, automation of many processes can still be achieved for nonQM. Lenders should use the technological advances in the mortgage industry of the last couple of years to their advantage; doing so will open up entire new populations of potential borrowers. Borrowers needing a non-QM mortgage deserve the same experience as borrowers in agency products. The mortgage borrowing experience has been greatly improved due to technology; the process is much smoother and more efficient with automation, alleviating many pain points for borrowers. NonQM borrowers should also have access to the same quality level of service and experience. Many lenders say their mission is to provide access to homeownership to as many Americans as possible; expanding their product portfolio is vital to accomplishing this goal. But just expanding the portfolio is not enough if some borrowers are going to receive a sub-par experience. Two of the most important pieces of technology or automation that lenders should be implementing if they want to be successful at non-QM include: l A digital lending platform that is both borrower-facing and lender-facing, providing an intuitive experience. The digital lending platform should be integrated with other key mortgage technologies as well: Credit providers to enable credit pulls at the point-of-sale, asset, income and employment verification

providers to allow the borrower to provide necessary documentation as easily as possible, insurance providers to quickly pull HOI into a file, e-signature and document providers to quickly e-disclose and sign documents, and payment providers to easily accept appraisal payments. These integrations working together help alleviate risk for the lender by automating the information-gathering process, providing the most accurate data. With so many non-QM loans relying heavily on bank statements, easy access to those statements via asset providers will eliminate a huge pain point for both borrowers and loan officers. l A non-QM Product and Pricing Engine integrated at the point of sale. This is integral and allows LOs to qualify and price loans through an automated process similar to what they are used to doing for agency loans. Additionally, it allows for transparency in pricing and closing costs for borrowers. If a lender leverages all of these tech pieces, it can be a game changer for it in the nonQM marketplace. Automation results in shorter processing times, higher borrower satisfaction, less risk and an allaround improved experience. Gone are the days of a loan officer calculating pricing by hand from a large sheet. NonQM is no longer the scary, unwieldy beast for LOs it seemed just a few years ago. Some people worry that the rise of non-QM in today’s market

is akin to some of the riskier products that led to the Great Recession. The Wall Street Journal recently stated about non-QM products that they are “a flavor of mortgage once panned for its role in the housing meltdown a decade ago.” However, the non-QM products of today are not the NINJA loans from the mid-aughts. Lenders can extend credit to deserving borrowers without putting themselves in a risky position, especially if they leverage automation. The loan process today is 180 degrees different than it was 13 years ago. Lenders that take advantage of the tools in the market are putting themselves in the best position to fund lower-risk loans, whether QM or non-QM. The biggest point of contention that many LOs feel when thinking about tackling non-QM mortgages is the perceived lack of guidance for a specific product. Anybody who has originated before will be forgiven for automatically thinking about the pages of guidelines that will need to be waded through in order to help the non-QM borrower on the phone. In order to make these loans less tricky for LOs, lenders must invest in automation to make the process as smooth as possible. It may not help the guideline deep-dive, but at least 12 months of bank statements can be connected automatically via API from the borrower’s financial institution. Looking into 2019 and beyond, non-QM is going to continue to grow. Lenders wanting to increase their market share of this segment need to focus on automation in order to increase efficiencies and reduce risk.

Brooke Mulder has seven-plus years of experience in financial services. She is currently the Marketing & Communications Manager for MortgageHippo. Prior to MortgageHippo, she worked for three top 15 mortgage lenders and is highly experienced in sales/originations, sales management, performance analytics and business development. She holds an MBA from Marist College and currently resides in Chicago. She may be reached by phone at (623) 229-5099 or e-mail Brooke@MortgageHippo.com.

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Top Habits of the Most Successful Loan Officers By Joseph Massey

An educated LO has educated clients Today’s mortgage market may require the same skill set as it

did 10 years ago and include timeless habits, but its products and offerings continue to change dramatically. How mortgages are marketed, shopped and qualified for has changed, and loan requirements, legal and regulatory rules and compliance guidelines have increased in their complexity. You must commit yourself to knowing everything about your products, from A to Z. Get a clear understanding of how to structure a loan properly to avoid unnecessary delays and missed deadlines. It’s also important to know the proper use and application for the various loan options. You could save your clients countless hours searching the Internet for advice by sharing your knowledge and insight. To be this trusted guide, however, dedicate yourself to keeping up with changes, taking advantage of educational opportunities and asking questions of senior LOs or product experts. Keep in mind that while developing an excellent working knowledge of your products is critical, honing your ability to clearly articulate the outlines of a mortgage to a borrower could be just as important. Is your first-time homebuyer just nodding along as you blurt out a flurry of numbers and acronyms, or are you taking the time to explain the product’s features in clear and concise terms? Even if your borrowers have researched on their own, don’t assume they fully understand how the product works. Making an effort to ensure borrowers are not just informed, but also confident and educated, will serve as a bonding agent and build trust. Better time management Time and again, I see good, capable LOs underperform due to lack of quality time management. Instead of focusing on profit-generating activity, far too many LOs find themselves getting distracted. Here’s an example: An LO falls into the trap of hovering over a loan and forgets to spend time prospecting, initiating a

rollercoaster of good months followed by bad months. This is why LOs need to spend time building and sticking to a sustainable daily schedule. By “stick to it,” I mean avoid unnecessary interruptions and stay on task—despite the fact that it may be easy to be interrupted during the time allocated for phone calls, email or other important work. Although it may seem old-fashioned, I’ve seen top-producing LOs print out their daily schedules as a visual reminder to help keep them focused. While many LOs have a sense of fear when it comes to automation and technology in our industry, thinking it will ultimately replace them, there are valuable opportunities to automate repetitive processes that don’t require your attention, and automation could free you up to spend more time prospecting or engaging your existing database of clients. Adopting just a few of these good habits, even in a tumultuous market, could help you succeed. Our business may be cyclical, but your success doesn’t have to be temporary. Solid LOs could produce in any market. Focusing on your client relationships (both prospective and current), knowing your products inside and out and sticking to rock-solid time management skills could lead you to success. Resolve to succeed in 2019! All organization names and logos are trademarks of respective owners who do not provide, sponsor, endorse or have connection with this advertisement. Georgia Residential Mortgage Licensee, License #43759. Castle & Cooke Mortgage, LLC, 2755 South Locust Street, Suite 150, Offices 18-21, Denver, CO 80222. Regulated by the Colorado Division of Real Estate. This article is for informational purposes only and should not be construed as lending advice. Castle & Cooke Mortgage, LLC is an Equal Housing Lender. 0119CCMMISC365.

Joseph Massey is a Branch Manager and Senior Loan Officer at Castle & Cooke Mortgage LLC, one of the nation’s leading independent mortgage lenders with locations across the United States. He can be reached by e-mail at JMassey@CastleCookeMortgage.com.

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The relationship is still king Let’s first discuss an area where far too many Loan Officers exhibit bad habits: Relationships. In an age of short attention spans and 140-character conversations, it can be difficult to be fully present in a meeting or at an event. Smartphones and easy Internet access make it all too tempting to check your e-mails or send a quick text when you should be making eye contact and devoting your focus to the person in front of you. It is particularly astonishing to consider that when speaking with someone who is trusting you with the largest financial transaction of their life, you could be distracted by an e-mail. A tip here—structure your schedule to include dedicated time for e-mail. And when you’re with people,

turn off any audible notifications and ignore your phone! There are two main aspects at play with relationships in our business: Building and prospecting new clients, and maintaining existing relationships. Loan Officers often invest too little time and effort into prospecting and maintaining relationships. This is perhaps the most crucial part of the job. Without a steady stream of clients and prospects, your business won’t last. That means you need to make time and commit serious effort to getting in front of people. Network with Realtors, attend local events, and get involved with relevant trade or civic organizations. But wait, you might say, how much time are we talking about? Well, you don’t need to work a 60- or 80hour week to be successful. The secret is to be focused and systematic. For instance, if you dedicate an hour a day to prospecting, you’ll be in great shape. Keep in mind that according to industry data, perloan profits are at less than $500, and net per-loan revenue was actually negative a year ago. Therefore, it is critical to keep an active pipeline of clients. Our business has become very unit-driven, so if you want to be closing 5 to 10 loans per month, you need to be talking to at least 50 people. As for your existing database, many struggling LOs don’t realize the wealth of data and potential they have inside their existing client databases. Make sure you follow up with homeowners—while new technology-based tools give people a sense of their home’s worth, you still have a significant opportunity to keep in touch and remind them of any updated offerings. According to a recent First American Financial Corporation study, although the median homeownership tenure is currently at an all-time high of 10 years, half of all homeowners will be buying or selling in fewer than 10 years. For younger families—and Millennials—that number is likely to be much lower. If nothing else, keeping in touch with clients reminds them of your capabilities and gives them a referral opportunity with their friends and neighbors.

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he New Year is here, and it’s time for resolutions. But if you’re like many people, you may have already abandoned your resolution to eat better, go to the gym or lose a bad habit. So when it comes to setting goals as a Loan Officer, I’m here to propose some new resolutions you may actually keep! According to the Mortgage Bankers Association (MBA), mortgage loan originations are projected to remain mostly flat in 2019 compared to 2018. Thanks to rising rates, refinance activity will fall further, and any gains we make will be in the purchase market. That means we’ve got our work cut out for us this year, and maximizing our talents and time has never been more crucial to our success. As I see it, successful Loan Officers should focus on improving in three main areas: Relationship Building and Maintenance, Product Knowledge, and Time Management. Regardless of the market, new technology or any other change in the industry, creating and maintaining healthy habits in these areas will keep you in demand. American consumers may be willing to go online to buy clothing, furniture or other items, but the challenging process of homebuying still requires a guide. In fact, when you consider how thick loan packets have become (thanks to increased regulation) and the high price of many homes, having a trusted, valued partner is perhaps more essential than ever.

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2019:

The Year of the Wholesale Lender? By Brian Rieger & Robert Rubin

ife for wholesale mortgage lenders, and Mortgage Brokers, can be stressful. This segment of the mortgage industry has seen more than its share of ups and downs in the past 10 years. It’s a dynamic market, where longevity is more of a unicorn than a standard. New regs, new players and new market forces are all happening constantly, and yet, it appears that we are finally entering a period where the wholesale business is at an advantage.

“In an online poll of 2,002 adults conducted by Atomik Research, 26 percent of

Brokers have more capabilities available than ever before, but they’re still seeking resources to grow The lending landscape is much different in 2019 than it was in 2005, which was perhaps the high-water mark for the wholesale industry. Technology has made quite a bit of the tedious administrative element of the Mortgage Broker’s existence much easier. Yet, the typical Broker or brokerage works on slim margins. The inherent volatility of wholesale lending still means that a Broker must capture as much business as possible during the good times. As a result, most Brokers are still seeking wholesale lenders who will partner with them and make their lives easier, allowing them to focus on what they do best: Sales and client support. The industry is finally starting to understand this, as demonstrated in this example taken from Rick Grant’s article “NAMB, Calyx Bring New Broker Technology to Market” in the January 2019 issue of National Mortgage Professional Magazine: “Earlier this month, NAMB announced the launch of its new platform, NAMB All-In, available to all NAMB members at no cost. Powered by Calyx Software, NAMB All-In provides mortgage professionals with the three essential components they need to conduct business: A point-of-sale solution (POS), a cloud-based loan origination system (LOS), and a single point of access to premier wholesale lenders. “The LOS is free to the Broker,

Many wholesale lenders now understand that their business is at least partially dependent on providing inexpensive, or free, resources to their originator clients, which leaves the typical Broker with choices and leaves the wholesale lender seeking ways to differentiate itself; getting the word to as many brokers as possible. Wholesale lenders need to better market their services “Marketing” can mean many different things in the mortgage industry. To some, it’s paid advertising. To others, it’s no different from sales. It’s cold calling and conference attendance. Yet marketing, done well, should be much more comprehensive. A robust and complete marketing plan doesn’t have to cost hundreds of thousands of dollars, but it does put the lender’s value proposition in front of potential clients consistently and frequently, keeping the sales funnel full. What kind of marketing should wholesale lenders be executing right now? First and foremost, wholesale lenders should be embracing the concept of content marketing. Today, the typical professional sees advertising in his or her sleep. E-mails. Point of sale advertising. Pop ups. Oldfashioned mailers. All relying on the old-fashioned “interruption” technique of messaging. In other words, the theory goes, if you can get the attention of the viewer, you’ll win the sale. Wrong. The interruption technique today serves mostly to annoy the people that it touches. Instead, today’s professional makes partnership or purchase decisions based upon trust and word of mouth. The interruption technique does nothing to support this.

Content marketing, on the other hand, builds a relationship. In providing content (Webinar, enewsletter, podcast, video) that is inherently useful to the recipient, the content marketer invites that recipient to an ongoing conversation. Just as the best sales executive doesn’t begin a conversation with a prospect by barking out his or her latest rates; content marketing eases into the relationship by delivering useful resources such as how-to information; educational resources for homebuyers or technology primers. Public relations is another powerful way to differentiate the growing wholesale lender. When a lender’s key spokespeople project relevant subject matter expertise, whether in a print publication or on the stage at a trade conference, their target markets take notice. Again, Brokers are seeking partners when it comes to wholesale lending. Partners who know what they’re talking about. Partners who are leading the way for other lenders to follow. Of course, this doesn’t discount other powerful marketing communications channels. Social media can no longer be ignored as a means of messaging—not without risk of ceding the battleground to the competition. Advertising and direct marketing absolutely have their purposes and can be extremely effective with the right strategy (HINT: Carpet bombing is not it.). And direct sales is every bit as important as it’s ever been in the effort to win market share. The key to all of this is customizing the marketing mix for your target market, your budget and your goals. Wholesale lending is a resilient market segment which has certainly had its peaks and valleys over the years. The good news is, for those paying attention, the market in 2019 may finally be just right for the ambitious wholesale lender. Now get out there and let the origination world know that you’re open for business!

Brian Rieger owns True Impact Communications, a public relations and marketing agency serving mortgage-related businesses. He can be reached by phone at (330) 3481678, e-mail Brian@TrueImpactCommunications.com or visit TrueImpactCommunications.com. Bob Rubin Owner of The Business Loan Connection, which brings businesses together with financial sources which issue financial facilities enabling those businesses to prosper and expand. He may be reached by phone at (248) 6136731, e-mail BobR@tblnc.com or visit tblnc.com.

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The purchase market favors the customer service model that a mortgage broker can offer We may be living in the age of the digital mortgage, but someone needs to tell the American consumer. With refinance waning, the mortgage industry is all about the purchase loan now. But the typical consumer still dreads the experience. From Phil Hall’s article “OneThird of Americans Find Mortgage Process Stressful” on NationalMortgageProfessional.com: “Nearly one-third of Americans have no familiarity with mortgage lending options, and the same number find the mortgage process too stressful, according to a survey released by the San Francisco-based digital mortgage company Eave Inc.

“Click Here to Apply” or a tab entitled “Resources” are far less reassuring to many homebuyers (especially first-time borrowers) than the resources available from a trusted advisor, such as a Loan Originator. The predominant mortgage transaction in 2019 will be the home purchase loan. Good Mortgage Brokers hold the edge when it comes to customer service … period.

as is access to the marketplace. Brokers only pay $10 when a consumer uses the Web-based POS tool, but Brokers can just use the LOS and Marketplace for free.”

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The wholesale lender’s primary competition will grow more slowly … if at all No. This is not a prediction that the giant direct-to-consumer lenders are going under. But with economic uncertainty upon us, the biggest competitors to wholesale lenders have been playing “by the book” in scaling back expenses. As many other large institutions have been doing, many direct lenders have been cutting costs. These cuts typically affect departments and resources that aren’t considered “profit centers,” and tend to impact things like client service, sales support and marketing. While this doesn’t necessarily mean the very top direct-toconsumer lenders will go completely backwards, it could mean a pause in growth. That pause could be just enough impetus for wholesale growth. The inherent edge will happen at the point of sale.

respondents stated they do not trust big banks since the 2008 financial meltdown. Thirty-two percent of respondents stated they knew nothing about the products and services available in today’s mortgage origination process, with 33 percent complaining of the stress level involved in pursuing homeownership and 72 percent lamenting that it should be easier.”

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Digital Domination: Beyond a Social Experiment By Christine Beckwith

“There are two types of individuals on this digital fence, the old-schoolers who are resisting the social media craze and changes under the guise of it being self-serving and overblown, and those people who are capturing business, capitalizing and moving with the needle of evolution?”

voices are suddenly being heard and when they get their full steam underneath, they stand to change our industry’s look, feel and experience for generations to come. The collective power of innovation was evident at every turn. I won’t turn this article into a lesson on digital media, or even a social media algorithm class, but I would rather explain that the words and language that will influence a generation to come are no longer “jargon,” as so many want to say in disdain. They are no different than when the older generation 30 years ago were learning their latest and greatest, but now the microphones held by that generation are, in some cases, sounding off or resisting the movement. A movement that is not isolated to the mortgage and real estate industry, but no doubt is sweeping the entire globe. This movement is being driven by our elementary grade school children, who are spending more time in chat rooms than on phones and the like, while playing virtual games and

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like-minded people who came to learn, further their digital worlds and truly grasp an age that will continue to evolve. There was nothing short of excellence gathered on the fringe of these events. Now, you might think I am writing this to use my podium to self-serve, after all, I was a speaker at Agent 2021, but I promise you, staying true to my journalistic integrity, I will write from the mass perspective. I spent weeks reading the reviews, podcasts, social commentary and videos flooding the Internet and could not find a foul word spoken on either event. So, what does all this mean? The truth is in my last column, I said we are headed into a social world and “The train is leaving the station.” Well, that train is picking up speed already and “all aboard” might have well been sounded at Agent2021 when Facebook, Instagram and other digital forums showed up. NEXT was the next stop, and everyone got on the train. So, no doubt powered by the likes of those “slow to work” Millennials, their

wearing headsets have them interacting like we did at the neighborhood basketball park. So, what resonates is the opening remarks at Agent2021: “There are two types of individuals on this digital fence, the old-schoolers who are resisting the social media craze and changes under the guise of it being self-serving and overblown, and those people who are capturing business, capitalizing and moving with the needle of evolution?” Understood … check the box. The only problem I see with this is whether you realize which one of those two people you are. I think, at times. I have been both, but am I evolving? Are you evolving as well? Two years ago, I had 1,200 followers on LinkedIn and I admittedly just joined the Instagram front, after years of resistance. That being said, having learned now the algorithms and fronting a new national coaching company, I intentionally entered the digital race a little over a year ago. Today, I am maxed out on LinkedIn for connections, now reverting to followers. I have accelerated with capital gains from social media, and I think now that I cannot imagine if I had continued to resist the evolution, where would I be and just where would my new company be? So … how do you get into the race? Study each media and take classes. Matt Guerin, Vice President of Social Media at Vaynermedia,

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would be remiss for this month’s article, that as a speaker at Gary Vaynerchuk’s Agent2021 and a sponsor of the very tech-savvy NEXT Women in Technology Conference, I didn’t come back and talk about the experience, lessons learned and provide a review here at National Mortgage Professional Magazine using my platform to shout into a megaphone that the “Age of Social Media Denial” is ending and the real evolutionist are steadily gaining ground. I am so happy I caught the train. In short, both experiences were top-notch, first-class, firstrate experiences. The Agent2021 event impressed end to end, was truly an epicenter of digital education, a convention that could pull the “old school” mentality out of its coma and convert the non-converted professional over the proverbial wall and put some coals on the fire. That being said, the mantra was “kind” and the experience was “powerful.” NEXT similarly came with its digital prowess, from how well and technology advanced the entire experience is from marketing, to the conference app to the in-body tech vibe, this conference too is on a state-ofthe-art level. This putting the exclamation point at the end of my month of technology focus for 2019! Besides the fact that these events had you drooling for the content you knew would flow out of the mouths of their leaders, speakers and attendees, you were surrounded by the same

Wishing for Problems?

By Mark H. Jones

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mechanic was removing a cylinder head from the motor of a Harley-Davidson motorcycle when he noticed one of his customers, a wellknown cardiologist, walk into the shop.

The mechanic shouted across the garage, “Hey Doc, want to take a look at this?” The cardiologist walked over to where his mechanic was working on the motorcycle. The mechanic straightened up, wiped his hands on a rag and asked, “So, Doc, look at this engine. I opened its heart, took the valves out, repaired the damage, and then put them back in, and now that I’m finished, it works just like new.” “So, I’ve been wondering how come I make $40,000 a year and you get the really big bucks when you and I are doing basically the same work?” The cardiologist paused, smiled and leaned over, then whispered to the mechanic ... “Try doing it with the engine running.” The cardiologist makes an important point. A large part of our value is often determined by the worth and/or the complexity of the problems that we solve on a regular basis. We often fret over problems at home, at work, and in various areas of our lives when in fact we should consider that if not for problems we would grow very little as individuals, would do little in demonstrating our value as employees, and would not become as valued within our communities and social circles. “The problem is not that there are problems. The problem is expecting otherwise and thinking that having problems is a problem.”—Theodore Rubin From a money management perspective, solving money problems is most often the difference between those successful with money and those who, at best, flounder. There was a recent television commercial for a gold redemption company featuring well-known athletes and actors who are also well known to be broke after great careers and who were now redeeming gold to stay afloat. The Kenny Nelsons, Ed McMahons and Mike Tysons of the world are more numerous than we realize. Kiplinger Magazine recently published an article that a Hollywood pawn shop was making money hands over fist from celebrities pawning artwork, jewelry and other valuables to be able to maintain their lifestyles. The average lottery winner of a million dollars or more is typically broke, and in debt, in a fairly short period of time. Most often, the reason behind this revolves around not learning how to

solve money problems before hitting it big and therefore not knowing how to solve the same problems after having hit it big. As Robert Kiyosaki states in Increase Your Financial I.Q., “Many people do not solve their money problems when they are small and at the toothache stage. Instead of solving the problem, they make it worse by ignoring it or not solving the root of the problem.” “Every problem has in it the seeds of its own solution. If you don’t have any problems, you don’t get any seeds.”— Norman Vincent Peale Hard work doesn’t solve money problems and academic education doesn’t solve money problems. We all know plenty of people who are hard workers and/or highly educated that are not necessarily good financial problem solvers and who are under severe financial stress. Sure working smart and getting better educated can increase your income but it is rarely how much you make that matters but rather how you use what you make that makes the difference. Within your own financial house take some time to look for opportunities to fix problems that you haven’t addressed. We all have plenty of problems to solve if we are willing to acknowledge the issues. “Again and again, the impossible decision is solved when we see that the problem is only a tough decision waiting to be made.“—Dr. Robert Schuller If you want to increase your success at work, at home, with your finances, etc. don’t become a victim of your problems assuming there is no way out. Don’t think you can just work harder to make more money to solve your problems without considering the true root of the problem. You need to become the best problem solver you can be by seeking the true causes of the problems at hand and exploring better solutions. Welcome challenges, solve the problem, and improve at each opportunity. Problems make you smarter, more valuable, and more successful– if you solve the problems. “Don’t wish for fewer problems, wish you were better.”— Jim Rohn

Mark H. Jones is SVP/Director of Lending for Saco, Maine-based Saco & Biddeford Savings. He may be reached by phone at (207) 602-7359 or e-mail Mark7359@SBSavings.com.

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NewDay USA: Lending With Purpose to Put Every U.S. Veteran in a Home

An Interview With Rear Admiral Thomas Lynch, Executive Chairman, NewDay USA

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80 n January 2012, Rear Admiral Thomas Lynch assumed the role Chairman of the Board of Directors at NewDay USA, a nationwide mortgage company focused on helping veterans find the right and responsible mortgage solution. NewDay USA, headquartered in Fulton, Md., has been in the mortgage business for more than 20 years providing financial solutions to U.S. veteran homeowners and their families. Many of these veterans sit on NewDay USA’s Board of Advisors and are members of the management team. According to the U.S. Department of Veterans Affairs, NewDay USA is the 10th largest VA lender in the U.S. In 2018, NewDay USA helped approximately 10,700 veterans find a mortgage solution. National Mortgage Professional Magazine sat down with Rear Admiral Lynch, to discuss NewDay USA’s new Operation Home initiative and the unique assets that he brings to the company.

Admiral, it’s a privilege to speak with you today. Could you start by sharing some of your military

service background? Rear Admiral Lynch: I grew up in Lima, Ohio, and although I knew I wanted to serve my country, I really did not know anything about the military until I had an opportunity to attend the Naval Academy. Following graduation from the U.S. Naval Academy in June 1964, I served 31-plus years on active duty. While attending the Academy, I was fortunate to captain the 1963 Navy Cotton Bowl team, the year Roger Staubach was awarded the Heisman Trophy. I graduated from the Academy and commissioned as an Ensign in 1964. During my military career, I served as a surface warfare officer. Highlights included command at sea of a Navy frigate, Commander of the Eisenhower Battle Group during Operation Desert Shield and Superintendent of the U.S. Naval Academy, before retiring in late 1995.

Scientifics. I also was involved in pro bono charitable work. Rob Posner, NewDay USA’s CEO, reached out and asked me to join the NewDay Board of Directors. Rob was very persistent and ultimately convinced me to spend some time with him to learn about NewDay USA and its mission. Once I fully understood the company’s commitment to helping our veterans, I knew this would be a way for me to continue serving my country, and the men and women of the military. I joined because of what NewDay USA does every day for the veteran community. The company is dedicated to making sure veterans fully understand and have access to the VA benefits that they’ve earned through their service, which, in turn, puts them on a path to financial security and helps them be responsible homeowners.

Why did you decide to join the mortgage industry? Rear Admiral Lynch: Honestly, I had no intention of joining the mortgage industry. My post-Navy career was in private equity and venture capital as a Senior Vice President at Safeguard

Could you give us some background on NewDay USA’s mission? Rear Admiral Lynch: Our goal is to become the number one home mortgage company for U.S. continued on page 82

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veterans and servicemembers. We consider it to be a noble purpose to help veterans find a responsible mortgage solution and attain financial security that will directly improve their lives. We treat every veteran caller with the dignity, deference and respect they deserve. I was speaking with a customer recently who purchased a home with NewDay USA. He brought up the fact that his country trusted him with operating and maintaining complex, multimillion-dollar systems during his time in the service–but, here at home, many lenders won’t trust him enough to qualify for a VA home mortgage. We are dedicated to supporting veterans and their families throughout the entire process of purchasing and owning a home, which is why we’re particularly excited about our new Operation Home offering.

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Can you provide some background on Operation Home, and the benefits this program offers veterans? Rear Admiral Lynch: The goal of Operation Home is to put all U.S. veterans, servicemembers, and their families into a home. Operation Home allows servicemembers and veterans to purchase a home with no down payment and no money out of pocket for closing costs. The program works through a national network of Realtors who are either veterans themselves or familiar with VA loans, to help veterans maximize their benefits. We pair customers with local realtors who know their communities and the real estate market. A key differentiator of Operation Home is our cash buyer certificate. This certificate allows borrowers to receive full credit and income approval from NewDay USA’s Underwriting Department before they even make an offer on a home. This provides a decisive advantage in the home bidding process because the veteran has already been approved and can close quickly on a property. There are a lot of misconceptions out there about VA loans. Our goal is to educate our servicemembers and veterans about their benefits and provide them with financial solutions that help them

financially. We know that special circumstances sometimes present financial difficulties, so we work with these families to put solutions in place that works for everyone. Operation Home’s cash buyer certificate is one of them. Our goal is to reach one million families by 2025 through Operation Home. What is your company’s origination model? Rear Admiral Lynch: We operate a centralized origination model from our headquarters in Fulton, Md. We currently have 250 Loan Officers, who originated approximately $2.4 billion in VA mortgages in 2018. We hire driven, young professionals who have a college degree with a 3.0 minimum GPA and specific personality assets and have also demonstrated a penchant for teamwork during their college years by playing a sport or working a job in tandem with their course load. These young men and women are ambitious and have solid time management experience. We then train them extensively once they join the company. The NewDay USA University at our Maryland headquarters includes in-person instructors and classes wherein our new team members learn to become originators, and processors. We pride ourselves on educating the next generation of mortgage lending industry professionals. We invest a lot in our team members to ensure they are equipped with the tools and resources they need to be successful. Because we promote from within, we place a strong emphasis on leadership and actually provide 60 hours of Character Driven Leadership training during their first year. We employ energetic, hardworking, smart people who want to develop and become effective leaders. What’s next for your company? Rear Admiral Lynch: Currently, only a small percentage of my fellow veterans utilize their VA home loan benefit. In the future, and through the work we’re doing at NewDay USA, I hope to see a huge increase in this statistic. We want all veterans to be aware of their VA benefits

which they have earned by making sacrifices for our country. I take great pride that my first command at sea, the U.S.S. Truett, was named the most improved ship in the Atlantic fleet and more importantly, received the Golden Anchor Award, signifying the highest reenlistment rate of any ship in the fleet. This was possible because we had a Ship, Shipmate, Self philosophy. In other words, we thought first of our shipmates. At NewDay USA, we live our core values of training for a career. Providing opportunity, world-class service, integrity, resilience, giving back, and overarching these core values is our Ship, Shipmate, Self philosophy. As a sailor at sea

must ask what effect this action, thought or deed will have on my ship and my shipmates and only then worry about himself or herself. Every great leader must put themselves last! Imagine a mortgage company that, in similar fashion, asks itself the same kind of questions. With every business decision it makes, every mortgage it offers, every training session it conducts, we ask, “How will this impact veterans?” I am convinced that NewDay USA offers such leadership–and that we will be part of the solution that can help change the lives of men and women who have served our country so honorably. Such leadership pervades our culture and inspires all of us at NewDay USA each and every day.

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in a short amount of time. For example, in the early 2000s, mortgage professionals would use the phone to speak with customers, then fax or mail documents to them. Five to seven years ago, if you had a 30to 45-day closing period, that was considered good … now, you’re considered late. In my opinion, Rocket Mortgage kicked off a new wave of technology innovation several years ago and the industry is now in catch-up mode, figuring out how all the pieces fit together. With mortgage technology, you need to figure out how it fits into your company’s strategy. Some people want point-of-sale software to assist them, others want to speak directly with the customer and use technology behind the scenes. The feature differences in technology may be slight; however, pull-through rates can be impacted by these slight feature differences. For instance, point-of-sale access differs by technology. Some systems require a customer to create an account and password before they can begin their digital mortgage experience. While others, such as our product, Zip, begin the process the moment the customer clicks the button to start the application. Everything

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about technology is in a constant, accelerating state of change. As soon as someone thinks they have the best mousetrap, another mousetrap is invented. Has Calyx ever put forth a product that didn’t quite work the way you hoped it would? I can’t say that’s been the case. If you’re bringing something to market, you know there is going to be a market ready to use it. If the product is not hitting the mark, you’re not listening to your customers. At the end of the day, it’s all about frontline people telling us how and where we should enhance our products. I found that product demos help us generate many ideas. During demos, customers ask us, “Does your product do ‘X?’” If it doesn’t, then we may end up adding the “X” to our enhancement roadmap. Outside of work, how do you spend your leisure time? Is there such a thing? Seriously, my son is a U.S. Soccer Development Academy player and my daughter plays tennis. My wife and I are always running to soccer and tennis practices and matches … I wouldn’t have it any other way.

Phil Hall is Managing Editor of National Mortgage Professional Magazine. He may be reached by e-mail at PhilH@MortgageNewsNetwork.com.

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pointed out that every major media provides free courses. How simpler can it be? Step one seems to be, “Find the place your audience is,” and then get “Active,” and by “Active,” we mean daily postings, each day. LinkedIn takes the Oscar too for having the most impressions per active user, at a Super Bowl commercial level for folks engaging in daily content commercialization. It’s not too late to get in the LinkedIn race, as published estimates find that it will take in upwards of two years for a true saturation of the space to diminish returns. Until then, the money goes to the victors of engagement. Also, Facebook Chatbot was slated as the likely most digital place to promote yourself for 2019. So, we then look at “Influence.” I mediated the “Real Estate Influencers Panel,” comprised of some industry giants, including Vaynermedia VP of Paid-for-Social himself, Jonathon Morgenstern. As we sat watching hundreds of Realtors learning how

influencers can bring buyers to their platform or product of necessity, or even increase brand exposure and help them connect the dots, they listened with great attention and detail. A once scoffed-at word, now powerful, meaningful and clear that we were not going to laugh any longer at the guy who truly was creating “Influence.” Those who “get it” are also probably making money in this area. Those who do not “get it” will figure it out or continue to sit on the sidelines, poo-pooing the idea. Either way, the evolution will continue, and more will get on the train at the next station. Either way, the train is going to keep on moving forward because at every stop, it picks up more fuel, more purpose and more proof of their relevancy. Yes, there’s a whole new language now, as our vocabulary is being populated with words such as “Promoters, Influencers, Engagement, Capture, Disruption, Content, Call to Action, Impressions, Click-on, Digital Capital and

Conversion.” And the list continues … Jargon? No! Not it’s not jargon , it’s words … words that have definitions. In fact, I looked each of the words up on Wikipedia, not Urban Dictionary, and in fact, they are real words, likely not to go away, but to expand. In ending, it is obvious to me, having served last year on a Washington, D.C. Fintech Panel put on by Progressive Lending and NexLevel Advisors with Michael Hammond, surrounded by new innovative technology and a room full of minds, I could not possibly even understand that the world of “Digital Domination” is here to stay. Be on the lookout for the next train

coming to a city near you. I would buy a ticket if I were you and get a seat. The world is at your fingertips, virtually and literally. Finally, I will tell you along this technology train ride, I’ve met some incredible folks at these events, all who are trying to find their way, adapt and learn. I have also found many loud and opposing voices, which surprises me, due to the sheer negative business impact it may likely have. People who live in a world they do not understand or see as relevant. I guess that is all to be seen and brings us back to the opening of Agent2021 and finding which side of that fence you want to be on.

Christine Beckwith is a 30-year mortgage industry veteran who has broken many glass ceilings and has blazed a trail for many female professionals to come. Christine is currently President and COO of 20/20 Vision for Success Coaching and Consulting, a decorated, sought after and award-winning leader. 83

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

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

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

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

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

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

calendar of events FEBRUARY 2019 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. 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 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.

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. Monday-Tuesday, March 25-26 NRMLA 2019 Western Regional Meeting Paséa Hotel & Spa 21080 Pacific Coast Highway Huntington Beach, Calif. For more information, visit NRMLAOnline.org/event/2019-westernregional-meeting.

Wednesday, April 3 2019 IMA Spring Conference Quad City Waterfront Convention Center 2021 State Street • Bettendorf, Iowa For more information, visit IowaMA.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. Thursday-Friday, April 11-12 FAMP Gulf Coast and Suncoast Chapters Trade Show 2019 Crowne Plaza Tampa Westshore 5303 W. Kennedy Boulevard Tampa, Fla. For more information, visit GulfCoastFAMP.com. Tuesday-Thursday, April 16-18 2019 Great River MBA Conference The Peabody Hotel 149 Union Avenue Memphis, Tenn. For more information, visit GreatRiverMBA.com. Wednesday-Saturday, April 24-April 27 NAMMBA Connect 2019 The Westin Buckhead Atlanta 3391 Peachtree Road NE Atlanta For more information, visit NAMBA.org. Sunday-Tuesday, April 28-30 TMBA 103rd Annual Convention Marriott Rivercenter 101 Bowie Street San Antonio, Texas For more information, visit TexasMBA.org.

MAY 2019 Wednesday-Friday, May 1-3 2019 Wyoming Mortgage Lenders Conference Location to be determined Sheridan, Wyoming For more information, visit wymla.com. Saturday-Wednesday, May 4-8 NAMB 2019 Legislative & Conference Liaison Capitol Hill Hotel 415 New Jersey Avenue NW Washington, D.C. For more information, visit NAMB.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. 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. Monday-Tuesday, May 20-21 NRMLA 2019 Eastern Regional Meeting InterContinental New York Times Square 300 West 44th Street • New York, N.Y. For more information, visit NRMLAOnline.org/event/2019-easternregional-meeting. 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-Saturday, June 6-8 MBA/WBA 2019 Annual Meeting & Convention Snow King Resort 400 East Snow King Avenue Jackson, Wy. For more information, visit MontanaBankers.com.

JULY 2019 Wednesday-Saturday, July 31-August 3 FAMP 60th Annual Convention & Trade Show Walt Disney World Swan and Dolphin 1500 Epcot Resorts Boulevard Lake Buena Vista, Fla. For more information, visit OurFAMP.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. Friday, September 20 2019 UAMP Mortgage Expo Marriott at City Creek 75 South West Temple Salt Lake City, Utah For more information, visit UAMP.net. OCTOBER 2019 Thursday, October 24 AZAMP Annual Expo 2019 JW Marriott Phoenix Desert Ridge Resort & Spa 5350 East Marriott Drive Phoenix, Ariz. For more information, visit AzAMP.org. 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 Thursday, November 14 FAMP’s 2019 Miami Mortgage Convention Trade Show DoubleTree by Hilton Hotel Miami Airport & Convention Center 711 NW 72nd Avenue • Miami For more information, visit MiamiFAMP.org. Monday-Wednesday, November 18-20 2019 NRMLA Annual Meeting & Expo Nashville Omni 250 5th Avenue South Nashville, Tenn. For more information, visit NRMLAOnline.org/event/2019-annualmeeting-expo.

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 FEBRUARY 2019

Thursday, March 14 IMBA 2019 Mortgage Lending Conference Doubletree Hilton Hotel 1909 Spring Road Oak Brook, Ill. For more information, visit IMBA.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-Wednesday, April 30-May 1 MBAAL Spring Convention 2019 Hyatt Regency Hotel 1000 Galleria Circle Birmingham, Ala. For more information, visit MBAAL.org.

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Tuesday-Wednesday, March 12-13 MBA of KY 2019 Gala & Education Conference Holiday Inn Louisville East 1325 South Hurstbourne Parkway Louisville, Ky. For more information, visit MBAKY.org/2019-education-conference.

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.

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Visit our website to pre-qualify and request a FREE QUOTE

AUDIT DEFENSE AND RESPONSE

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AUDIT, MLO POLICIES and UPDATES Our fees are less than the big national firms that don’t call you back. Program includes all Manuals

FEBRUARY 2019 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

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

AUDIT TECHNOLOGY

ACES Risk Management (ARMCO) 1000 West McNab Rd. Pompano Beach, FL 33069 (800) 858-1598 www.armco.us

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COMPLIANCE CONSULTANTS

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

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

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

COMPLIANCE CONSULTANTS

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

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LENDERS COMPLIANCE GROUP 167 West Hudson Street - Suite 200 Long Beach | NY | 11561 | (516) 442-3456 www.LendersComplianceGroup.com The first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance. Pioneers in outsourcing solutions for mortgage compliance.

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

EDUCATION

Our Compliance Team Will: Leverage your existing employees. Improve your productivity. Collaborate on projects. Make the most of your current technology. Bring innovation to your company. Be a strong cultural fit. Free you to focus on your core competencies. Give you access to world-class expertise. Lower your total operational costs.

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

PRIVATE FINANCING

RECRUITMENT

PUBLICATIONS

WHOLESALE/CORRESPONDENT LENDERS

WHOLESALE LENDERS

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Greenbox Loans, Inc 3250 Wilshire Blvd., Suite 1900 Los Angeles, CA, 90010 (800) 600-9198 www.greenboxloans.com Greenbox Loans, Inc. is a proven leader in the Non-QM & Non-Prime lending environment offering bank statement programs, foreign national lending solutions, along with programs allowing for recent short sale, foreclosure, bankruptcy for borrowers as low as 500 Fico Score. Greenbox Loans, Inc. is a national lender offering its programs through a multiple of channels including Retail, Wholesale, and Investor Specialty division.

WHOLESALE LENDERS

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

Selected Mortgage Loan Originators may be entitled to receive: l Recognition in National Mortgage Professional Magazine l Participation in award ceremony at NAMMBA Connect Conference l Video interview on Mortgage News Network Nominees must represent minorities or be women who originate loans with an active NMLS number. Production by units or total loan volume (dollar amount) must be verified by letter by a sales manager or other responsible party. Submission will be reviewed and due diligence will be conducted on a percentage of all submissions. Inaccurate data provided will result in a company ban.

To submit your nomination, go to

NMPMag.com/NAMMBA100 Any questions? Call Jaclyn Leitermann at (516) 409-5555 x315.

n National Mortgage Professional Magazine n FEBRUARY 2019

PUBLICATIONS

FEBRUARY 2019 n National Mortgage Professional Magazine n NationalMortgageProfessional.com

WE’RE GROWING! Apply Now At JoinAngelOak.com

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