National Mortgage Professional Magazine January 2015 by ambizmedia

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F addi sconsumeraccess.org. b Licensedd by Dp t 2 AAriizona: d th W Bel B l Road, R d Sui S te 1, Glendale, AZ 85308, N 0907158; Arkansas: Combi C binatition Mortgage BBroker k Servicer, Licensee No. 11884; Cal C lifornia: Licensed by by the th Department DDepa t t off Busi B iness Oversi O ight under d the California Residential Mortgage L ding Department, Licensee No. 21332; o Licensed as an Arizona Mortgage g g Banker under the AAriizona DDepar p rtment of Financiial IInstitittuti 8 g g Banker-Broker-Servi Banke k rr-Broker-Ser p rtment Mortga g ggee Lendi Department utitions, 4347 W. Licensee No. AAct,t Licensee NNo. 6037237 d Regul R g lattedd by by the th Col C lorado d Division off Real R l Estate; E t t Connecti C ticut:t Licen D laware: Licensedd by by the th Del D laware State St t Bank B k Commi C issiioner to t engage ( d through th 2014)) Distrit ict off Col C lumbi bia: Licensedd by by the th D.C. D C Department D p t t off Insurance, I surance, 6037237; C Collorado: nsedd bbyy the th Connecti C ticuutt Department D p t t off Banki B king, g Licensee No. N 10162; 1016222; Del engage g g in busi b iness in this State St t under d License No. No. 2403 (renewed throuugh gh 2014); Ins ensed Floriida: Floriida M tg g LLender d Licensee NNo. MLD333 M tg g Licensee, No. N 13967; 13967 Idaho: Id h Licensedd by by the th Idaho Id h Department D p t t off Finance, Licensee No. N MBL-5032; MBL 5032 Illinoiis: Illinoiis Resi Resiidentitial Mortgage 05484 Indi I diana: Indi I diana Firstt Lien Mortgage M tg g Lendi L ding License under d the th Indi I diana Department D p t t off FiFnanciial SSecuriities andd BBankikingg, Licensee NNo. MLB2917 MLB2917; M Mortgage MLD333; G Georg gia: G Georgi gia RResiidentitial Mortgage M g g Licensee, No. MB.0005484; Georgi I titutitions, Licensee NNo. 11058 0309 KKan K Licens C p y Licensee No. N SL.0000212; SL 0000212 Kentucky: K t ky Licensedd by by the th Kentucky K t ky Department D p t t off Financiial Insti I titutitions, MC16957 Loui L isiana: Resi R identitial Mortgage M tg g Lendi L ding Liicensee No. N 1421; 1421 Mai M ine: Supervi S p isedd Lender L d Licensee No. N SLM5962; SLM5962 Maryl Insti 11058; IIowa: LiL censedd bbyy th the IIowa Division off BBankikingg, Licensee NNo. 2004 2004-0309; sas: Kansas-Li edd Mortgage M tg g Company, n Licensee No. No. MC16957; M y and: Kansas: ensed M h tt Massachusetts M h tt Mortgage M tg g Broker/Lender/Servi B k /L d /S icer Regi t Minnesota t Resi ff to t enter t into t an agreement t law. Any t Marylylandd Mortgage M M tg g Lender L d Licensee No. N 1731; 1731 Massachusetts: M tg g Lender L d Licensee No. NNoo. ML 2917; 2917 Michigan: 1st 1 t Mortgage R gistrant, t t LiL censee No. N FR0714; FR0714 Minnesota: R identitial Mortgage M tg g Ori O iginator t License No. N MN-MO-20399083. MN MO 20399083 This is nott an offer g t under d Minnesota A y suchh offer ff mayy onlly be b made d pursuant p to q irementst in Minn. Stat. Section on 47.206 ((3)) and (4); ( ) Mississippppi: Licensedd by p t of Banking aand ndd Consumer ennsed byy the Missouri Division of Finance, Licensee No. No. 14-2178; Montana g g Lender under the Division of Banking & Financial Instititutitions, Licensee No. 8453; Nebraska: Nebraska: t the th requi by the th Mississippppi Department C 2178 Montana: M t a: Licensed Mortgage k Nebraska Mortgage M t g Banker LiL censee Finance, Licensee No. 2917; Missourii: Licensed M tg g Lendi L ding to k loans securedd by by liens on reall property, W t Warm 702 454 4212 New New Jersey: J y Department M ico: New NNo. 1470 1470; Nevada: N d Licensedd by by the th Nevada NNevada d Division off Mortgage t make makel p p ty Licensee No. NNo.1047 G ty Mortgage M tg g Corporati C p tion, n 1489 West W Spri Sp ings g Road, R d Sui S itee215 215,HHenderson, d NV 89014, 89014 Phone Ph e No. N 702-454-4212; J y Licensedd by by the theN th New Jersey DDepartme p t entt off Banki B king andd Insurance, I N 9700530; 9700530 New New Mexi New Mexi M ico 1047, Firstt Guaranty 215, NV New Licensee No. tg g LLoa S icer Regi R gistrati ttraatit on, Licensee No. B500800 B50080 (d/b/a C p on);) North Carollina: North th Carol C M t Mortgage g LLoan Com mpany p y License NNo. 01085 01085; NNew YYork:k Licensed Mortgage g g Banker - N.Y. .S. Bankiking DDepartment p and Exempt pM Mortgage ( p Naame First Guarantyy Mortgage g g Corporati North Caroollina Mortgage Company N.Y.S. Loann Servi FGMC In Lieu of True Corporate Name Lender Licensee No. L-100362; North Dakota: Licensed in North DDakota k t as Firstt Guaranty ty Mortgage M tg g Corporati N MB101924; MB101924 Ohio::Ohi M tg g Broker M tg g Banker B k Exempti MBMB 8550010 hhomaM O g Mortgage M tg g Lendi L ding Licensee No. GuaraantyMortgageCorporati G C p tion dba db FGMC, FGMC,LiLicensee No. FGMC MB101924;Ohi B k Act A t Mortgage E ption No. N MBMB.850010.000; MBMB.85 50010.000; 000 Oklahoma: h tg g Lender L d Licensee No. N ML002709; ML0002709 02709;O g Oregon No. ML-2634; 634 Pennsyl PPennnsylylvaniia: Ohio Mortgage Oklahoma Mortgage Oregon: D p t t off Banki B ng and Securities, Licensee No. 20768; Rhode IIslland: d Rhode Rh Island Licensedd LLend th Carol C lina: South Carol N MLS-2917; South Dakota: by the th South S th Dakota D k t Department Licensed byy the PPen nnsylylvaniia Department R er; South Caarolina Mortgage g g Lender/Servicer Licensee No. Dakotaa: Licensedd by Department p t g ation, n Division Pennsyl Lender; of Labor and Regul N ML.05077; ML 05077 Tennessee: T T D p t t off Financiial Insti I titut S ings t Licensedd by V t Department off BBankikingg, Licenseee No. Tennessee Department Mortgage tg g Licensee NNo. 109451 109451; TTexa by the th Texas T Department De D partment p t t off Savi g andd Mortgage M tg g Lendi L ding; g Utah: Ut h Utah Ut h Mortgage M tg g Enti EEnntitity Licensee No. No. 5491155; 5491155 Vermont: V by the th Vermont DDepar p rtment t t off utitit ons M Texas:s: Licensedd by g lationn,, Licensee No. the Virggiinia St State gt Washi W t Virginia: West Virginia Mortgage Lender Licensee No. ML-20742; Financiial RRegul N 6644; 6644 Virggiinia: Licensedd bbyy th t Corporati C p tioonn Commi C issiion as a Lender L d andd Broker BBroker, k , Licensee No. N MC-436; MC 436 Washi W hington: W hington t Consumer C L Company, C CL 2917 West 0742 Wi W sconsin: Follow us on: Loan Licensee No. CL-2917; Licensedd Wisconsiin M t BBanker, k Licensee NNo. 26835BA Mortgage 26835BA; W Wyomiing: Licensedd bby th the W Wyomiing Division off BBankiking, Licensee NNo. 18 31. 31 1831.

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n National Mortgage Professional Magazine n JANUARY 2015

The Housing Show with Phil Hall

NationalMortgageProfessional.com

Hard-hitting, fact based look at some of the most important issues facing the home ﬁnance industry today – with a bit of humor and irreverence thrown in.

table o

N A T I O N A L

FHA Reduces Mortgage Insurance Premium by 0.5 Percent By Phil Hall

J A N U A R Y

28 Robust Risk management: The Cornerstone of a Strong Mortgage Lending Industry By Kenneth M. Donohue

2 0 1 5

M O R T

V O

A SPECIAL FOCUS ON “MORTGAGE INDUSTRY EMPLOYMENT” Nine Ways to Leverage Culture to Grow Business By Allen Beydoun................................................................................56 Satisfaction in the Office: Keeping Employees Happy By Ashley Lubey..................................................................................58 The Grass Is Greener on Seti Alpha IV By Eric Weinstein ..............60 Recruitment: How to Attract the Very Best By Brent Emler ..........61 The 12 Steps to Strategically Stage Your Interview By Laura Burke, EA, MBA, MS ..........................................................63

FEATURES Three Ways Top Producers Grow By Gibran Nicholas ....................8

32 CFPB Plans for New Credit Data Quality Reports and Focus on Medical Collections By Terry W. Clemans

The Elite Performer: Stop Comparing the Impossible By Andy W. Harris, CRMS ....................................................................8 The Importance of Being Heard By Blake Noyes............................10 Forecasting the “Best Marketing Approach” for 2015 ..................16 Emerging From a Sales Slump By K. Justin Restaino ....................18 NAMB Perspective ............................................................................20 How to Tap the “House-Buying Generation” By Bubba Mills........24 CFPB Proposes Expanded Foreclosure Protections By Ray Hagan ....................................................................................30

V I S I T

35 National Mortgage Professional Magazine Presents Top Mortgage Employers

Company

Web Site

O U R

A Page

Agility Resources Group ...................................... www.agilityresourcesgroup.com ......................................65 AllRegs.............................................................. www.allregs.com ..........................................................60 American Financial Resources ............................ www.afrwholesale.com ......................................Back Cover BetterLoanOfficers.com ...................................... www.betterloanofficers.com ..........................................33 Boomerang........................................................ www.boomerangprospecting.com ..................................41 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................72 CallFurst.com ...................................................... www.callfurst.com ............................................................61 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................15 & 63 CMPS Institute .................................................. www.cmpslive.com ..........................................................5 Document Systems, Inc./DocMagic ...................... www.docmagic.com ................................................7 & 39

42 Lykken on Leadership: Five Powerful Benefits to Becoming a Transparent Leader By David Lykken

Equity Prime LLC................................................ www.equityprime.com ..................................................53 First Guaranty Mortgage Corp. ............................ www.fgmc.com ..............................Inside Front Cover & 42 HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................19 JMAC Lending .................................................... www.jmaclending.com ..................................................31 Listing Booster .................................................. www.listingbooster.com ................................................47 Lykken On Lending ............................................ www.lykkenonlending.com ............................................49 Maverick Funding Corp....................................... www.maverickfunding.com ............................................17 MBA-NJAMB ...................................................... www.mbanj.com ..........................................................51

f contents

T G A G E

L U M E

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

N U M B E R

NMP’s Economic Commentary: A Look Ahead … And Behind By Dave Hershman ........................................................34 Why Your Business Needs Quality Online Reviews By Rene Rodriguez ............................................................................44 Just Ask Eric & Laura By Eric Weinstein & Laura Burke..................46 Legal Updates: January 2015 By Melanie A. Feliciano Esq.............48 ABA Takes New Volley at Farm Credit System By Phil Hall ..........48 FHA’s HECM is Here to Stay By Garrett M. Kolb ............................50 MBA’s Mortgage Action Alliance: A Message From MAA Chairwoman Amy Swaney................................................................50 If It’s Going to Be … It’s Up to Me By Brian Sacks ........................52 Listen to Cultivate Culture By Kerry Elam ......................................54 NAPMW Report: January 2015 By Nikki Bell ..................................65 Managing Two Key Operational Risks for Mortgage Lenders By Jim Deitch ......................................................................................69

COLUMNS New to Market..............................................................................12 News Flash: January 2015 ..........................................................14 Heard on the Street ....................................................................40 NMP Calendar of Events ............................................................66 NMP Resource Registry..............................................................70

D V E R T I S E R S Company

Web Site

Page

Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ......................................1 NAMB+ ............................................................ www.nambplus.com ......................................................23 NAMBPAC.......................................................... www.namb.org ................................................................3 NAPMW ............................................................ www.napmw.org ....................................................58 & 67 NAWRB ............................................................ www.nawrb.com ............................................................68 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................27, 43 & Inside Back Cover PB Financial Group Corp..................................... www.pbfinancialgrp.com ..............................................65 REMN (Real Estate Mortgage Network) ................ www.remnwholesale.com ..............................................13 Reverse Mortgage Solutions, Inc. ........................ www.partners.rmsnav.com ............................................57 Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................55 Streetlinks LLC .................................................. www.streetlinks.com ......................................................25

Dear Mortgage Professional, Happy New Year! With 2014 now ofﬁcially in our rear view, and with our sights set on some big things for 2015, I want to take this opportunity to once again extend my most sincere and heartfelt THANK YOU to everyone who contributed to NAMBPAC this past year! Mike Anderson Chuck Anderson Rocke Andrews Fred Arnold Kevin Ary Jayne Bail Jim Barry Joel Berman Rick Bettencourt Sharon Bitz Doug Braden Joseph Cannarozzi Terry Casey Dana Chahidi George Charles Kay Cleland Terry Clemans John Councilman Roy DeLoach

Michael DeSantis Harry Dinham George Duarte Scott Dudley Don Fader FAMP Federal PAC Ginny Ferguson Bryan Foreman Don Frommeyer Scott Grifﬁn Sylvia Gutierrez Andy Harris Melissa Hayes Lisa Hernandez Carla Highﬁeld John Hudson Edmund Irwin Everett Ives Helga James

Erik Janeczko Jon Kaempfer David Kane Charlie Keiser Edmund King Nan Kirkpatrick Linda Knowlton Terri Koubek Fred Kreger Olga Kucerak Kim Lewis Lisa Lund Linda McCoy Tiffany McCoy James L. Nabors, II Danielle Neveu OAMBPAC Jim Pair Nathan Pierce

NAMBPAC raised over $72,000.00 during the 2014 election cycle and participated in a number of key House and Senate races, contributing $43,000.00 to both Republican and Democrat candidates who support meaningful consumer protection, a strong mortgage market, and fair competition. For additional information about NAMBPAC, please feel free to contact me or visit www.namb.org. NAMBPAC is the non-partisan political action committee for NAMB, The Association of Mortgage Professionals. NAMB is the recognized and respected voice of the mortgage originator on Capitol Hill and throughout Washington, D.C., and NAMB supports the operation of NAMBPAC as authorized by, and in accordance with, federal law.

TagQuest .......................................................... www.tagquest.com ........................................................45 The Bond Exchange............................................ www.thebondexchange.com ..........................................34 The National Real Estate Post.............................. www.thenationalrealestatepost.com ..........................56, 69 Titan List & Mailing Services, Inc. ........................ www.titanlists.com ..........................................................9 Top Producer Round Table ................................ www.topproducerroundtable.com ....................................5 United Northern Mortgage Bankers, Ltd............... www.unitednorthern.com ......................................29 & 59 United Wholesale Mortgage ................................ www.uwm.com/younited ................................................11

John Porter Tina Rose Kathy Rubin Diego Sandoval Valerie Saunders Andy Seepersad Lisa Severseike Kane Smeltz John G. Stevens TAMB Federal PAC David Timmerman Michelle Velez Irving Webb Kimber White Cynthia Wingo Brain Yampolsky

John G. Stevens, CRMS 2014-2015 Chair NAMBPAC John@JohnGStevens.com

JANUARY 2015 Volume 7 • Number 1

FROM THE

Hey Brother … Do You Have a Job for Me?

1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com

Headlines like “Companies Added More Workers Than as 2014 Drew to a Close” or “Headcounts Are Growing as the World’s Largest Economy Strengthens” says it all. I decided in preparation for this column to make a number of phone calls to lenders and affiliated service providers to see if the “positive employment forecast” in the general economy was mirrored in the mortgage industry. The result was a resounding “Yes!” with a bit of added clarifications. The mortgage industry mirrors an optimistic employment outlook, concurrent with a strong recruitment effort within the industry to identify and recruit existing experienced personnel. The mortgage industry, by all of the economic indicators reported, should do well in 2015. Mortgage industry employees displaced over recent years are finding the opportunity to take their training and experience and re-enter the mortgage profession. In fact, in my mini-focus group of phone calls, I found that most companies were finding that they did not have the luxury to train new recruits and opted to drive their recruitment efforts towards either experienced employees looking for a change or to returnees to the industry. The optimism for 2015 on all of my calls is something I haven’t heard in years. Even the word that brings both fear and added expense to most mortgage operations, the word “compliance,” has fueled a hiring frenzy to meet the growing need for both implementation and administering compliance programs. Simply put, if you have experience in any of the sectors of the mortgage industry, from loan officer, account executives and support personnel, 2015 should be a good year for you to either explore your options or return to the mortgage industry. It is nice to report on the positive growth of employment in the mortgage industry for a change! This month, we launched our first annual list of “America’s Top Mortgage Employers.” Through the thousands of surveys completed by our readers, the results were produced as outlined in this edition reflecting the top mortgage employers, both nationwide and by region. First, I’d like to congratulate all the companies included in these listings. Second, I’d like to thank all of you who took the time to complete the survey. We never expected the huge response we received for this feature, and look forward to adding additional data culled from the results in future annual reports. In closing this month’s column, I’d like to thank you for your continued support of our publication and invite you to drop me an e-mail at joel@nmpmediacorp.com if you have any comments and suggestions. Many of the features, and even articles, contained monthly come from ideas we’ve received from our readers. My best wishes for a happy, healthy and prosperous new year! And lastly … in response to my opening question “Hey brother, do you have a job for me?” The answer in 2015 is “Yes,” but be sure to bring along some experience. Sincerely,

STAFF Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 ericp@nmpmediacorp.com

Joel M. Berman Publisher - CEO (516) 409-5555, ext. 310 joel@nmpmediacorp.com

Joey Arendt Art Director (516) 409-5555, ext. 307 joeya@nmpmediacorp.com

Beverly Bolnick National Sales Manager (516) 409-5555, ext. 316 beverlyk@nmpmediacorp.com

Scott Koondel Operations Manager (516) 409-5555, ext. 324 scottk@nmpmediacorp.com

Phil Hall Managing Editor (516) 409-5555, ext. 312 philh@nmpmediacorp.com

Richard Zyta Social Media Ambassador (516) 409-5555 richardz@nmpmediacorp.com

Francine Miller Advertising Coordinator (516) 409-5555, ext. 301 francinem@nmpmediacorp.com

ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact National Account Executive Beverly Koondel at (516) 409-5555, ext. 316 or e-mail beverlyk@nmpmediacorp.com.

ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or e-mail ericp@nmpmediacorp.com. The deadline for submissions is the first of the month prior to the target issue.

SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@nmpmediacorp.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600.

JANUARY 2015 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

publisher’s desk

Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA, and other state mortgage trade associations. National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in NMP Media Corp. publications. National Mortgage Professional Magazine and NMP Media Corp. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

EDITORIAL CONTRIBUTORS Featured Editorial Contributors Richard M. Bettencourt Jr., CRMS, CMHS

Phil Hall

Laura Burke, EA, MBA, MS

Ray Hagan

Rene Rodriguez

Andy W. Harris, CRMS

Jim Deitch

Ashley Lubey

Brian Sacks

David Lykken

Kenneth M. Donohue

Bubba Mills

Eric Weinstein

Amy Swaney, CMB

Kerry Elam

Gibran Nicholas

Brent Emler

Blake Noyes

Melanie A. Feliciano Esq.

K. Justin Restaino

Terry W. Clemans

John Councilman, CMC, CRMS

Donald J. Frommeyer, CRMS

Dave Hershman

Fred Kreger, CMC

Editorial Contributors Nikki Bell

Allen Beydoun

Diane Crosby

Scott Forman

Steve Grossman

Brent Hicks

Kelly Marsh

Gibran Nicholas

Jen Du Plessis

Craig Strent

Date

City

Date

City

Thurs., Feb. 12

San Diego, CA

Tues., Feb. 24

Portland, OR

Fri., Feb. 13

Marina Del Rey, CA

Wed., Feb. 25

Seattle, WA

Mon., Feb. 16

Irvine, CA

Thurs., Feb. 26

Scottsdale, AZ

Mon., Feb. 23

San Ramon, CA

Fri., Feb. 27

Las Vegas, NV

NationalMortgageProfessional.com

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n National Mortgage Professional Magazine n JANUARY 2015

Monday-Wednesday, March 23-25, 2015 • Marina Del Rey, CA

NAMB The Association of Mortgage Professionals

National Association of Professional Mortgage Women

2701 West 15th Street, Suite 536 l Plano, TX 75075 Phone: (972) 758-1151 l Fax: (530) 484-2906 Web site: www.namb.org

2014-2015 NAPMW National Board of Directors

NAMB 2014-2015 Board of Directors OFFICERS John Councilman, CMC, CRMS—President AMC Mortgage Corporation 10136 Avalon Lake Circle l Fort Myers, FL 33913 Phone: (239) 267-2400 l E-mail: jlc@amcmortgage.com Rocke Andrews, CMC, CRMS—President-Elect Lending Arizona LLC 3531 North Pantano Road l Tucson, AZ 85750 Phone: (520) 886-7283 l E-mail: randrews@lendingarizona.net Fred Kreger, CMC—Vice President American Family Funding 28368 Constellation Road, Suite 398 l Santa Clarita, CA 91350 Phone: (661) 505-4311 l E-mail: fred.kreger@affloans.com Rick Bettencourt, CRMS—Secretary Mortgage Network 300 Rosewood Drive l Danvers, MA 01923 Phone: (978) 777-7500 l E-mail: rbettencourt@mortgagenetwork.com Andy W. Harris, CRMS—Treasurer Vantage Mortgage Group Inc. 15962 SW Boones Ferry Rd., Ste 100 l Lake Oswego, Oregon 97035 Phone: (503) 496-0431, ext. 302 E-mail: aharris@vantagemortgagegroup.com

Donald J. Frommeyer, CRMS—Immediate Past President/NAMB CEO American Midwest Bank 200 Medical Drive, Suite C-2A l Carmel, IN 46032 Phone: (317) 575-4355 l E-mail: donald.frommeyer@gmail.com

P.O. Box 451718 l Garland, TX 75045 Phone: (800) 827-3034 Web site: www.napmw.org

National President Christine Pollard (607) 226-1046 president@napmw.org

Vice President–Western Region Anna Mackovska (323) 321-2222 westernregion@napmw.org

President-Elect Kelly Hendricks (314) 398-6840 preselect@napmw.org

Secretary Cynthia Nutter (360) 258-2206 natsecretary@napmw.org

Vice President–Central Region Judy Alderson (918) 250-9080, ext. 300

Treasurer Kimberly Rozell, CME (607) 229-5008 nattreasurer@napmw.org

Vice President–Eastern Region Cathy Kantrowitz (845) 463-3011 easternregion@napmw.org

Parliamentarian Dawn Adams, GML, CMI (607) 329-4622 dawnvadams@live.com

Vice President–Northwestern Region William “Bill” Sanderson, CME, CMI (360) 713-9264

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

2014-2015 Board of Directors

JANUARY 2015 n National Mortgage Professional Magazine n

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DIRECTORS Kay A. Cleland, CMC, CRMS KC Mortgage LLC 2041 North Highway 83, Unit CPO Box 783 l Franktown, CO 80116 Phone: (720) 670-0124 l E-mail: kay@kcmortgagecolorado.com

Mike Brown President (908) 813-8555, ext. 3020 mbrown@cisinfo.net

Judy Ryan Director Credit Plus (800) 258-3488 judy.ryan@creditplus.com

John H.P. Hudson, CRMS Premier Nationwide Lending 1202 W. Bitters Road, Bldg. 1, Ste. 1205 San Antonio, TX 78216 Phone: (817) 247-4766 l E-mail: jhudson@pnlending.com

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

Mike Thomas Director (615) 386-2285, ext. 285 mthomas@ciccredit.com

Maureen Devine Ex-Officio (413) 736-4511 mdevine@strategicinfo.com

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

Julie Wink Treasurer (901) 259-5105 julie@datafacts.com

Terry Clemans Executive Director (630) 539-1525 tclemans@ncrainc.org

Renee Erickson Conference Chair (866) 932-2715 renee@zipreports.com

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

Olga Kucerak, CRMS Crown Lending 328 West Mistletoe l San Antonio, TX 78212 Phone: (210) 828-3384 l E-mail: olga@crownlending.com David Luna, CRMS Mortgage Educators and Compliance 947 South 500 E, Suite 105 l American Fork, UT 84003 Phone: (877) 403-1428 l E-mail: david@mortgageeducators.com Linda McCoy, CRMS Mortgage Team 1 Inc. 6336 Piccadilly Square Drive l Mobile, AL 36609 Phone: (251) 650-0805 l E-mail: linda@mortgageteam1.com Valerie Saunders RE Financial Services 13033 West Lindburgh Avenue l Tampa, FL 33626 Phone: (866) 992-0785 l E-mail: valsaun@gmail.com John Stevens, CRMS Bank of England d/b/a ENG Lending 11650 South State Street, Suite 350 l Draper UT 84062 Phone: (801) 427-7111 l E-mail: jstevens@englending.com

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

Scott Ledbetter Director (801) 375-5522 sledbetter@propertysolutions.com

We wish to thank our loyal employees, computer wizards, amazingly supportive clients and every other person that has been a part of DocMagic becoming the company it is today. Excited about the future, we have new magic up our sleeves for the innovative solutions our industry will be needing next.

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25 Years of Innovative Loan Document and Compliance Solutions! 1.800.649.1362 I www.DocMagic.com

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Three Ways Top Producers Grow By Gibran Nicholas 1. Lifelong learning You've probably heard the old adage, "If you think education is expensive, try ignorance." Top producers get it. They are constantly learning new things like: l What are other successful loan originators doing right now, and why? l How do other industries handle similar challenges? l What can I learn from my experiences and the experiences of others? I would challenge you to make learning new things a daily habit this year. Personally, I've taken the advice of another top producer I know, and I've started getting up at 5:00 a.m. each morning. I'm not really a morning person … or at least I didn't think I was. But I was surprised at how much I enjoy the quiet time in the morning. It's like I've added an extra two hours of time to my day—productive time without interruption to reflect and learn new things. Try it for a week and let me know what you think!

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2. Leveraging new technologies This will always be a people-business. Technology should never replace the personal relationships you develop with people. That's why top producers take a disciplined approach to new technology. Here are three questions top producers ask and answer about technology: l How specifically will this technology improve my team's experience in collaborating together, saving time and ensuring compliance with government regulations? l How specifically will this technology improve my borrower's experience in working with me and my team? l How specifically will this technology improve my strategic partner's experience in working with me and my team? The highly respected management guru Peter Drucker had it right when he asked leaders to really consider, "Who's my customer?" In the mortgage business, you have three primary customers: Your Team, Your Borrowers and Your Strategic Partners. Top producers embrace new technologies that help them better serve their three primary customers. 3. Focusing on relationships What really motivates top producers is the positive impact they make in people's lives. Your mission as a top producer is to improve lives. The way you do that is by originating mortgages. Your reward is fantastic compensation and the feeling you get when somebody's life is enhanced as a result of your service. When you're under-compensated or under-appreciated, it's because you may have lost touch with your core mission of improving lives. An oppressive compliance regime, challenging market conditions, and unrealistic expectations are just a few obstacles that will stand in the way between you and your mission. Top producers constantly learn, leverage new technologies and overcome the obstacles that stand between them and their mission. That's what separates top producers from the rest of the 520,000 loan originators who are licensed or registered to compete with them. Join us at the next Top Producer Roundtable and walk away with some valuable insights to help you grow the way that top producers grow! Gibran Nicholas is the founder, chairman and CEO of CMPS Institute and Top Producer Round Table Series. Since 2005, he's helped more than 7,000 of America's top loan originators to grow sales and improve their relationships. He may be reached by phone at (888) 608-9800, e-mail gibran@CMPSInstitute.org or visit CMPSInstitute.org. A production of

SPONSORED EDITORIAL

THE

elite performer Stop Comparing the Impossible By Andy W. Harris, CRMS

uman nature causes us to compare ourselves to other people, either intentionally or unintentionally. The social comparison theory believes that individuals evaluate their own opinions and abilities by comparing themselves to others in order to reduce uncertainty in these domains, and learn how to define self. I certainly believe that we as humans do this, but the results in this analysis can lead to absolutely nothing productive since it is an impossible task. Think about it … you are unique. There is no other person like you in the universe. You have special individual DNA that has fundamental and distinctive characteristics and qualities, regarded as unchangeable. Your hand, finger, and other prints match no other human in existence past, present, or in the future. Acknowledging this reality can set you apart in many aspects of your life, helping you lose the bad habit of comparing yourself to others. You have special abilities and skills that no other person has, many of which untapped. Understanding this and exposing these abilities uncovers your potential. Many of us have no idea the limits in our abilities, primarily because we place mental road blocks with doubt or uncertainty. Many of these negative thoughts have been created by inaccurate comparisons or assumptions. I believe that if we stop comparing —Bill Gates ourselves to others, but instead compare ourselves to who and what we are individually meant to be, quality of life can vastly improve. Use your unique gifts and talents and learn how to make them shine in your own life and the lives of others. Surround yourself with other positive people that can help you with your weaknesses. Never compare your successes or failures with other people and never let others place limits on what you can or cannot do. Set goals related to your own desires, focused on tapping into your individual gifts and potential. No human is perfect. Never be afraid to be yourself and find what truly makes you happy.

“Don’t compare yourself with anyone in this world … if you do so, you are insulting yourself.”

Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and 2010-2011 president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431, e-mail aharris@vantagemortgagegroup.com or visit www.vantagemortgagegroup.com.

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n National Mortgage Professional Magazine n JANUARY 2015

The Importance of

Being Heard By Blake Noyes acebook. Twitter. Women’s Suffrage. The French and American Revolutions. These may sound like Jeopardy! categories, but there’s one very important trait that they all share in common— each of these are examples of how important the ability to be heard, to be able to voice our thoughts, opinions, and feelings, is to us as humans. The immense popularity of social media demonstrates how much we value the ability to share what’s on our mind with others and the fact that entire social and political movements have been created simply to defend that ability when it has been threatened show how vital we view it to be to our existence. Now, obviously these are largescale examples, but the sentiment is true even in our day-to-day experiences. For example, have you ever voiced a concern to a co-worker or boss, only to find that it was never mentioned again? Or, felt the frustration of being transferred to the third customer service representative and having to explain your situation for the third time? The belief that we have a voice is strongly

tied to our feeling of self-worth, which is why the only logical response to the classic question “if a tree falls in the forest and nobody is around to hear it, does it make a sound?” is “it doesn’t matter.” We each have the ability to influence the world around us, but not every approach will yield results. So, how can we help to ensure that our voices are heard? Here are some guidelines to keep in mind:

know exactly what they mean. They are called “detectives.” For those of us who have chosen different professions, we tend to take what others say at face value, rather than searching for hidden meaning. If something is important to you, then you must stress that importance. Statements demand responses; hints demand riddles and, if the riddle does not already exist, hints will create them.

l Define what you want: Nobody can ever see inside your head except you. So, nobody will be able to know what you’re thinking as well as you do. It’s important to define, as precisely as you can, what is on your mind. If you feel undervalued at work, ask yourself: “By whom? What makes me feel this way: A lack of words of appreciation by my coworkers? My income? The number of company awards I have received?” The more clearly you can define your wants, the more people will be able to feel like they can actually help you.

l Don’t be confrontational: It’s a general rule of nature that anything that’s under attack will look to defend itself. While you may have concerns or something that is frustrating you, coming off as aggressive will cause all of the listener’s focus to be used solely on defending themselves, leaving no room left to address your actual concerns. Additionally, even if your thoughts do reach their intended target, they may find themselves less than eager to help you.

l Be direct: There are people in the world who can pick up hints and

l Choose the format carefully: Carefully select the venue or format in which you make your voice be heard. Some are positive, team-building and

respectful. While others are negative, dividing and disrespectful. l Return the favor: As important as it is to you to speak your mind and feel that your thoughts are being valued, it is equally important to others to feel the same as well. Listening puts you on the path of being listened to. Make sure to periodically ask others how they are doing or get their opinions on various topics and, most importantly, truly listen to their responses. If you can establish a reputation as someone who pays attention to what others have to say, you will find yourself with a willing audience nearly anytime you choose to speak your mind. Now that we have gone over some tips to communicate your thoughts effectively, it’s time to put them into practice. Blake Noyes is national recruiting coordinator at Hammerhouse LLC, an expanding national recruiting and strategic growth firm for the financial services industry with mortgage sales and leadership placement at its core. Blake can be reached at blake.noyes@teamhammerhouse.com.

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A partnership is more than just great service and pricing. When you choose UWM, our UConnect program will monitor past borrower mortgage credit pulls to provide the leads back to you. In 2014 alone, we connected more than 25,000 past borrowers back to their Loan OfďŹ cers. Some call that unheard of, but we call it Lending Made Easy. Itâ&#x20AC;&#x2122;s just another way that UWM invests in your success. Make the obvious choice and let UWM invest in you.

800-981-8898 | UWM.COM/YOUNITED This information is provided to mortgage and real estate professionals only and is not intended nor is it authorized for consumer distribution.

n National Mortgage Professional Magazine n JANUARY 2015

FOCUSED ON YOU.

UWM Announces Conventional Financing Up to 97 Percent LTV

JANUARY 2015 n National Mortgage Professional Magazine n

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United Wholesale Mortgage (UWM) has announced that it has launched a product which offers conventional financing on up to 97 percent loan to value (LTV). With Fannie Mae’s newly released version of Desktop Underwriter 9.2 (DU), UWM was able to reintroduce standard conventional and MyCommunity Mortgage financing up to 97 percent LTV for first-time homebuyers with a DU approval. This program is significant because it opens up new business opportunities for both real estate agents and originators. Real estate agents will be able to help a broader range of perspective buyers and originators can offer their clients lower downpayments and lower monthly payments. It also gives borrowers that are traditionally forced into government loans the opportunity to obtain conventional financing. “Immediately after Fannie Mae released version 9.2 of DU, we had the opportunity to reintroduce this program given Fannie’s changes, and we’re the first wholesale lender in the country to make it available,” said Mat Ishbia, president and CEO of UWM. “We always strive to give our partners a competitive advantage. Being first to market allows UWM’s partners to get many consumers into loans that are more affordable. Our robust technology and extensive training, in part, enables us to turn on a dime and continually expand our product offerings.” UWM’s partners can already access the program by logging into its loan portal, EASE, to gain approvals. The program can also be accessed by UWM’s UMobile application for Apple and Android Devices.

CFPB Releases New Suite of Homeowner Tools

As part of the Consumer Financial Protection Bureau’s (CFPB) “Know Before You Owe” initiative, the Bureau has released “Owning a Home,” a suite of tools to inform and empower con-

sumers shopping for a mortgage. It takes the consumer from the very start of the homebuying process, with a guide to loan options, terminology and costs, through to the closing table with a closing checklist. One key feature of Owning a Home is the Rate Checker tool. In its beta release, this tool helps consumers understand what interest rates may be available to them by using the same underwriting variables that lenders use on their internal rate sheets. These are the documents lenders use to calculate what interest rate is available for a particular combination of loan type, property value, loan amount, and credit score. The data behind the Rate Checker is updated daily and includes information from large banks, regional banks, and credit unions and covers about 80 percent of the mortgage market. The Rate Checker can provide borrowers looking to buy a single-family home with: l Interest rates tailored to consumers: Consumers can plug in their credit score, their location, and information about the loan they are seeking to see the rates that lenders are offering. This is different than other websites that usually quote rates using averages for borrowers with great credit and a large down payment. The tool also shows, in a simple graph, how many lenders are offering each rate, so consumers can understand how likely they are to get that rate, given their situation. l Clearer understanding of how much money is saved with lower rates: It can be hard to understand how a difference in interest rate percentage translates into actual dollars that have to be paid for the cost of the loan. The CFPB tool makes it easy to compare different interest rates and how much they will cost over the life of the loan. For a borrower taking out a 30-year fixed-rate loan for $350,000, getting an interest rate of 3.75 percent instead of 4.25 percent translates into approximately $100 savings per month. Over the first five years, the borrower would

save more than $6,000 in mortgage payments. In addition, the lower interest rate means that the borrower would pay off an additional $2,500 in principal in the first five years, even while making lower payments. l The effects of different downpayments and credit scores: The tool lets consumers try out different scenarios and see their impact on the cost of the mortgage. For example, consumers can see what would happen if they qualified for a lower interest rate by improving their credit score or saving for a bigger downpayment. l Information on how to get a better interest rate: The tool provides steps consumers can take to work toward a better interest rate. This includes advice in the short term when consumers are looking to buy soon, and over the long term, if consumers have more time to work on improving their credit profile. While many mortgage tools exist online, the CFPB tool is unbiased. Consumers can use it as much as they like and trust they are getting impartial information.

Pacific Union to Utilize OpenClose’s LenderAssist LOS Platform OpenClose, an end-to-end loan origination system (LOS) provider, has announced that Pacific Union Financial LLC signed with the company to implement its multi-channel, 100 percent browser-based LOS platform, LenderAssist. The comprehensive solution will automate Pacific Union Financial’s wholesale lending functions from start to finish and establish complete data control and visibility over processes. “We selected OpenClose because its platform can scale with us as we grow while making sure we are efficient and compliant at everything we do operationally,” said Bill Berg, executive vice president and chief information officer at Pacific Union Financial. “In addition, we

were attracted to OpenClose’s use of a single code base throughout its platform and were impressed with the company’s industry reputation for providing very hands-on, responsive installations and ongoing customer support. We believe OpenClose will be an excellent long-term partner that will work side by side with us to innovate and customize the system to satisfy our desire to have the highest quality and most robust origination platform in the industry.” Using OpenClose’s LenderAssist LOS, Pacific Union Financial says it expects to dramatically elevate service levels for originators, speed up turn times, ensure compliance, reduce origination costs, and maximize employee productivity. As Pacific Union Financial continues to grow, it requires a platform that can flex with business process changes and scale to support rapid increases in loan volume. The LenderAssist LOS extends various functionality to the point-of-sale via its broker portal, offering originators robust technology tools that makes doing business with Pacific Union Financial quick, easy and simple. OpenClose will handle the onus of system implementation and configuration for Pacific Union Financial, provide detailed training and responsive customer support. “Pacific Union Financial is a rapidly growing lender that is very innovative, forward-thinking and focused on optimizing each of its processes to efficiently originate compliant, quality loans with fast turn times and a high pull through rate,” said JP Kelly, president of OpenClose. “The flexibility of our system to be configured to their specific needs, use of a single code base, and our ability to scale is a perfect match for their business goals.”

QuestSoft Launches Update to Comply With RESPA/TILA Revisions

QuestSoft, a provider of automated mortgage compliance software, has updated its Compliance EAGLE software

continued on page 18

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EWSFLASH l JANUARY 2015 l NMP NEWSFLASH l JANARY 2015 NMP NEWSFLA CFPB Report Finds More Than Half of Consumers Fail to Shop Around

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The Consumer Financial Protection Bureau (CFPB) has released a report finding that almost half of consumers do not shop around for a mortgage when purchasing a home. The report also found that informed consumers are more likely to shop, especially if they are familiar with available mortgage rates. As part of its Know Before You Owe mortgage initiative, the CFPB is releasing “Owning a Home,” an interactive, online toolkit designed to help consumers as they shop for a mortgage. The suite of tools gives consumers the information and confidence they need to get the best deal. “Our study found that many consumers are not shopping for a mortgage. Consumers put great thought into the choice of a home, but the mortgage process continues to be intimidating,” said CFPB Director Richard Cordray. “The Know Before You Owe Owning a Home toolkit makes it easy to see how shopping for a mortgage can translate into big dollars saved in the long run. We want to enable consumers to be more savvy shoppers.” While many risky features of mortgages are now restricted or unavailable in the marketplace since the financial crisis, mortgages still have different terms and features. Key components include the loan term, loan type, and interest rate. Loan terms typically vary between 15 and 30 years. Loan types include Federal Housing Administration (FHA), Veterans Affairs (VA), and conventional loans. Interest rates can be fixed or adjustable, and the rates vary across lenders, even for the same consumer and for loans with otherwise identical product features. Consumers can shop for a mortgage by researching and inquiring with multiple lenders, applying for mortgages with multiple lenders, or applying for different kinds of loans. The report is based on results from new data in the National Survey of

Mortgage Borrowers, a voluntary survey jointly conducted by the CFPB and the Federal Housing Finance Agency. The Bureau analyzed responses from consumers who took out a mortgage to buy a home in 2013.

NAR Forecasts ExistingHome Sales to Rise Nearly Seven Percent in 2015 Existing-home sales are forecasted to rise about seven percent in 2015 behind a strengthening economy, solid job gains and a healthy increase in home prices, according to National Association of Realtors (NAR) Chief Economist Lawrence Yun in a newly-released video on his 2015 housing market expectations. In the NAR-published video, Yun discusses his expectations for the U.S. economy and housing market in 2015 and points to the expanding economy, continued growth in the labor market and home prices rising at a moderate but healthy clip as his reasons for an expected increase (from 2014) in new and existing-home sales. “Home prices have risen for the past three years cumulatively about 25 percent, which boosts confidence in the market and traditionally gives current homeowners the ability to use their equity buildup as a downpayment towards their next home purchase,” said Yun. “Furthermore, first-time buyers are expected to slowly return as the economy improves and new mortgage products are made available in the marketplace with low downpayments and private mortgage insurance.” Despite his forecasted increase in sales, Yun cites the anticipated rise in interest rates, lenders being slow to ease underwriting standards back to normalized levels, and homeowners unwilling to move because they are comfortable with their current low

interest rate as potential speedbumps that could slow the increased pace of sales this year. With one month of data remaining in 2014, Yun expects total existinghomes sales to finish the year around 4.94 million (down three percent from 2013), but then rise to 5.30 million in 2015. The national median existinghome price for 2014 will be close to $208,000, up 5.6 percent from 2013, and is expected to moderate to a pace between four and five percent in 2015.

Supreme Court Rules for Homeowners in TILA Case In its first case of 2015 affecting the mortgage industry, Jesinoski v. Countrywide, U.S. Supreme Court, No. 13-684, the U.S. Supreme Court ruled unanimously in favor of homeowners seeking to rescind their mortgages if their lenders face accusations of running afoul of the Truth-in-Lending Act (TILA). The 9-0 vote, which reverses a lower court decision, was a victory for Larry and Cheryle Jesinoki of Eagan, Minn., who were in litigation over a $611,000 loan from 2007 that was originated for them by Countrywide Home Loans Inc., later acquired by Bank of America. TILA enables a homeowner to rescind a mortgage for up to three years after it was made if it is determined that details of the loan were not properly explained by the lender. The Jesinokis filed a rescinding notice at the tail end of their three-year period, and a lawsuit followed when Bank of America disputed the Jesinokis’ action. Similar cases have resulted in mixed rulings in the lower courts, with some rulings favoring the action taken by the Jesinokis—as affirmed by the Third, Fourth and 11th Circuit Courts—and others determining that homeowners must file a lawsuit to rescind their mortgage rather than merely sending a

letter to their lender—as affirmed by the First, Sixth, Eighth, Ninth, and 10th Circuit Courts. “The Jesinoskis mailed respondents written notice of their intention to rescind within three years of their loan’s consummation,” wrote Justice Antonin Scalia in the court’s ruling. “Because this is all that a borrower must do in order to exercise his right to rescind under the Act, the court below erred in dismissing the complaint. Accordingly, we reverse the judgment of the Eighth Circuit and remand the case for further proceedings consistent with this opinion.”

Commercial Mortgage Lenders Predict Growth in 2015 Commercial and multifamily mortgage lending is expected to increase in 2015, as lenders’ appetites to place new loans remains very strong and borrowers’ appetites to borrow increase, according to a new Mortgage Bankers Association (MBA) survey of the top commercial and multifamily mortgage origination firms. A full 100 percent of the top firms expect originations to increase in 2015, with 68 percent expecting an increase of five percent or more. Seventy-two percent expect their own firm’s originations to increase by five percent or more. “Commercial mortgage lenders anticipate another competitive year in 2015,” said Jamie Woodwell, MBA’s vice president for Commercial Real Estate Research. “Lenders’ appetites for loans remain very strong, and with the 10year loans made during 2005, 2006 and 2007 maturing, lenders also anticipate growing demand from borrowers.” Majorities of respondents expect originations for every major investor group to increase. Eighty-three percent anticipate a “very strong” appetite among firms to make loans and 50 percent anticipate a “very strong” appetite among borrowers to take out loans. Lenders were surveyed on a scale of “very weak, weak, fair, strong, or very strong.”

CoreLogic has released new analysis showing nearly 273,000 U.S. homes re-

1.5 million (1,433,296), or three percent. For the homes in negative equity status, the national aggregate value of negative equity was $338 billion at the end of Q3 2014, down $10.2 billion from approximately $348.2 billion in the second quarter 2014. On a year-over-year basis, the value of negative equity declined from $403.2 billion in Q3 2013, representing a decrease of 16.2 percent in 12 months. Of the 44.6 million residential properties with positive equity, approximately 9.4 million, or 19 percent, have less than 20-percent equity (referred to as “underequitied”) and 1.3 million of those have less than 5-percent equity (referred to as near-negative equity). Borrowers who are “under-equitied” may have a more difficult time refinancing their existing homes

or obtaining new financing to sell and buy another home due to underwriting constraints. Borrowers with near-negative equity are considered at risk of moving into negative equity if home prices fall. In contrast, if home prices rose by as little as five percent, an additional one million homeowners now in negative equity would regain equity. “Nationally, the negative equity share is down over three percentage points over the past year. Declines were concentrated in a handful of states, such as Nevada, Georgia, Michigan and Florida,” said Sam Khater, deputy chief economist for CoreLogic. “Forecasted house price appreciation of about five percontinued on page 16

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© Copyright 2007-2015 Carrington Mortgage Services, LLC headquartered at 1610 E. Saint Andrew Place, Suite B150, Santa Ana, CA 92705. Toll Free 800-561-4567. NMLS ID 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access website: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745; 2159 McCulloch Blvd 4, Lake Havasu City, AZ 86403. CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File 413 0904. CO: Check license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. KS: Supervised Loan License SL.0000313. KY: Mortgage Loan Company License MC21112. MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law. MO: Residential Mortgage Broker License 09-1746-S. NH: Licensed by the New Hampshire Banking Department. NJ: Licensed by the N.J. Department of Banking and Insurance. NY: Licensed Mortgage Banker—NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. OH: Ohio Mortgage Broker Act Mortgage Banker Exemption MBMB.850208.000 (FHA, DE & VA automatic loans only) OR: Mortgage Lender License ML4886. PA: Licensed by the Department of Banking. RI: Rhode Island Licensed Lender, Lender License 20112809LL. VA: Licensed by the Virginia State Corporation Commission MC5382. WA: Consumer Loan License CL2600. Also licensed in AL, AR, CT, DE, DC, FL, ID, IN, ME, MD, MI, MT, NM, NC, OK, SC, TN, TX, UT, WV and WI. NOTICE: All loans subject to credit, underwriting and property approval guidelines. Offered loan products may vary by state. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. Terms, conditions and programs are subject to change without notice. This information is for mortgage professionals only and is not intended for distribution to consumers. Carrington Mortgage Services is not acting on behalf of or at the direction of HUD/FHA or any office of the federal government. All rights reserved.

n National Mortgage Professional Magazine n JANUARY 2015

CoreLogic: 273,000 Residential Properties Regained Equity in Q3

turned to positive equity in the third quarter of 2014, bringing the total number of mortgaged residential properties with equity to approximately 44.6 million, or 90 percent of all mortgaged properties. Nationwide, borrower equity increased year over year by approximately $800 billion in the third quarter of 2014. The CoreLogic analysis indicates that approximately 5.1 million homes, or 10.3 percent of all residential properties with a mortgage, were still in negative equity as of Q3 2014 compared to 5.4 million homes, or 10.9 percent, for Q2 2014. This compares to a negative equity share of 13.3 percent, or 6.5 million homes, in Q3 2013, representing a year-over-year decrease in the number of underwater homes by almost

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Specific findings include: l In 2014, lenders were more eager to make loans than borrowers were to take out loans. A “very strong” appetite among lenders (87 percent of respondents) to make new loans in 2014 faced a generally “strong” appetite among borrowers to take out new loans (57 percent of respondents). l In 2015, lenders are expected to have a similar appetite to place loans, and borrowers a slightly stronger appetite to take out loans. Compared to 2014, a similar share of respondents expect lenders to have a “very strong” desire to make loans (83 percent of respondents anticipate “very strong” appetite versus 87 percent in 2014) and more expect borrowers to have a “very strong” appetite to take out new loans (50 percent versus 43 percent in 2014). l Originators expect the market to grow at a strong pace in 2015 (and their own firms to grow more quickly). Two-thirds (68 percent) of respondents expect total market originations to increase five percent or more in 2015. Almost three-quarters (72 percent) expect their own originations to increase by five percent or more. l Loans for every major investor group are expected to increase in 2015. Originations are expected to increase lending for commercial mortgage-backed securities (89 percent anticipate growth to be greater than five percent), bank portfolios (56 percent anticipate growth to be greater than five percent), Fannie Mae and Freddie Mac (46 percent anticipate growth to be greater five percent), pension/life insurance companies (41 percent anticipate growth to be greater five percent) and FHA (19 percent anticipate growth to be greater five percent). l Loan risk is expected to increase in 2015. Most respondents characterized the loans made in 2014 as “medium” risk (73 percent). In 2015, more respondents expect loans to be “somewhat high” risk (38 percent versus nine percent in 2014). Lenders were surveyed on a scale of very low, somewhat low, medium, somewhat high, and high. l Loan return is expected to moderate in 2015. Half of respondents (52 percent) characterized the loans made in 2014 as “somewhat low” or “very low” return. In 2015, nearly threequarters (74 percent) expect loans to be “somewhat low” or “very low” return.

Forecasting the “Best Marketing Approach” for 2015 Social media and direct marketing … the most revolutionary marketing method to hit the mortgage industry since the Internet itself. These methods of marketing place ads in front of the same people who you direct market to on social media Web sites like Facebook and Twitter. The bridge between online and direct marketing is here. Social media just became much more powerful for mortgage lenders Not only can you stay in front of your past clients online, you can also create multi-channel marketing campaigns and increase the impact of your marketing by placing online ads to the same people who received your mail piece. Upload the list of those whom you are marketing to and dramatically increase your results. Social media is here to stay To effectively market yourself, you need be on all of the social Web sites. The trouble is getting people to follow you. Friends and family are easy. You probably have some of your past clients following you as well that all follow you now. But how do you get more followers? Pay for advertising on social sites just like you would on search engines Advertising on social media Web sites has become mainstream. The trouble is specifying who receives your ads. Now you can specify not only who receives your ads, but also how much you want to spend. Grow as fast as you want. Put ads in front of past clients who aren’t following you. Put ads in front of those who you are sending direct mail to. You can even put ads in front of those whom you want to do business with based on their mortgage information, like loan amount or loan type.

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These highly effective, highly targeted online ad campaigns, combined with direct marketing campaigns like direct mail and telemarketing, are the best new way to drive traffic to your site and leads to your loan officers. Speak with your social media manager about it. This is a great window of opportunity for you to get ahead of the competition.

TagQuest Inc. client spotlight … Kent K., a Colorado-based mortgage lender Each month, we like to talk with our clients and find out how their marketing campaigns are going. Here is what we heard from Kent K., a Colorado-based mortgage lender: l l l l l l

Product: Direct mail with social media plug-in and PURLs (Personal URL) Approximately 5,000 pieces of mail sent out Forty-five inbound phone calls Fifteen Internet leads from the social media plug-in Ten e-mail leads from the PURLs Seventy qualified interested prospects from 5,000 mail pieces

What do you like best about this campaign? “The results mostly, but also the ability to use more than one loan product.” What are some things that might appeal to others in your industry? “With all the different ways to respond there’s not as much to worried about the initial call back response. Giving people more ways to respond gives more reliable results.” Based in Medford, Ore., TagQuest Inc. is a full-service marketing firm developed throughout the ever-changing mortgage industry. Utilizing industry knowledge, marketing expertise, and technology we implement any or all aspects of your marketing and/or advertising campaigns. With a proven track record, more than 10 years in business, and decades of experience TagQuest knows what it takes to produce unprecedented results in today’s fast-paced mortgage environment. For more information, call (888) 7178980 or visit www.tagquest.com.

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cent over the next year suggests that negative equity should be at about 8 percent a year from now, still above average, but approaching the pre-crisis level.”

FSR Urges Obama to Press Congress for GSE Wind Down The President and Congress should make housing finance reform that winds down Fannie and Freddie a priority this Congress, said the Financial Services Roundtable (FSR) following President Obama’s speech on housing, including an announcement that the Federal Housing Administration (FHA) will lower its annual mortgage insurance premiums. “We are pleased that the President has reaffirmed the administration’s commitment to permanent housing finance reform, and we hope he will take this opportunity to renew efforts to create a new system replacing Fannie Mae and Freddie Mac,” said FSR’s Housing Policy Council President John Dalton. “The mortgage industry is working hard to respond to the needs of consumers for well-underwritten, affordable mortgages, but a new, stable secondary mortgage market based on private capital is needed to protect taxpayers from future market trouble.” FSR urges the White House, FHA and the Federal Housing Finance Authority (FHFA) to coordinate housing policy standards. For example, private mortgage insurers must meet new stronger capital requirements to do business with the GSEs, but the FHA is moving in the opposite direction by reducing insurance premiums for its loans. Regulators should also continue to work with lenders on establishing clear representations and warranties for the GSEs and repurchase requirements for FHA to give lenders the confidence to make good loans to qualified buyers. FSR and HPC continue to advocate for housing finance reform legislation that will wind down Fannie and Freddie and replace them with a new market backed by private capital and a last-resort government backstop. This new system will relieve taxpayers from being at significant financial and economic risk should the economy face another downturn. The GSEs currently hold the majority of American mortgages and expose taxpayers to financial risk.

ICBA Urges FHFA to Withdraw Plan to Restrict Access to Federal Home Loan Banks The Independent Community Bankers of America (ICBA) has called on the Federal Housing Finance Agency (FHFA) to withdraw its proposal to restrict access to

the Federal Home Loan Banks (FHLBs). In a comment letter, ICBA wrote that the agency’s plan to require FHLB members to hold between one percent and 10 percent of their assets in home mortgage loans at all times contradicts Congress and will restrict access to mortgage credit. “ICBA and the more than 6,500 community banks in America view the Federal Home Loan Bank system, and access to it, as critical to the long-term health and viability of the community banking system in the United States,” ICBA Senior Vice President of Mortgage Finance Policy Ron Haynie wrote. “Without ready access to the low-cost advances provided by the FHLBs to community banks, many of those banks would be forced to severely curtail home mortgage lending in the communities they serve.” The FHFA’s proposal to implement an ongoing asset test to retain FHLB membership would force community banks to either hold more mortgagebacked securities in portfolio or possibly pass up opportunities to make other types of consumer, small-business or agriculture loans. A one percent asset test would impose this decision on 137 community banks, while a five percent asset test would apply to 315. Community banks affected by these changes would be unable to best serve their communities because of an arbitrary test imposed by a government regulator. This is contrary to the actions of Congress, which has always worked to expand FHLB membership and access to credit. ICBA encourages the nation’s community banks to continue expressing their opposition to these proposed restrictions while the association works with the FHFA to maintain the safety and accessibility of the FHLB System for all eligible institutions.

NCUA Files Suit Against Wells Fargo Over RMBS The National Credit Union Administration (NCUA) has filed suit in federal court against Wells Fargo Bank, alleging Wells Fargo violated state and federal laws by failing to fulfill its duties as trustee for 27 residential mortgagebacked securities (RMBS) trusts. The NCUA is suing in its capacity as liquidating agent for five failed corporate credit unions. NCUA’s complaint, seeks damages to be determined at trial. “Like other trustees against whom continued on page 41

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Maverick Funding Corp. NMLS#7706, Executive Offices, Offfices, 9 Entin Road, Suite 200, Parsippany, Parsippany, NJ 07054. Toll f Toll o Free 888-616-6866. Licensed by the California Department of Corporations under the California Residential Mortgage Lending Act, License #4131048. Licensed by the California Department of Corporations under the California Finance Lenders Law Law, w,, License #603H799. Illinois Residential Mortgage Licensee, License #MB.6760891, Massachusetts Lender License #ML3257; Michigan 1st Mortgage Broker/Lender/Servicer Registrant #FR0018028; License Licensed d by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed by the Pennsylvania Department of Banking; Rhode Island Licensed Lender; Licensed by the Virginia Virginia State Corporation Commission, License #MC5352; Oregon Mortgage Lending License ML-4961; Licensed Lender SC; Texas Texas e Mortgage Banker Registration; Washington Washington a Consumer Loan License #CL7706, #C Licensed Wisconsin Mortgage Banker Banker,, also Licensed in AL, CO, CT,, DC, DC DE, FL, GA, IN, KY KY, Y, ME, MD, MN, NC, OH, www.nmlsconsumeraccess.org TN, VT,, WV WV.. Equal Housing Lender Lender.. www.nmlsconsumeraccess.org

Emerging From a Sales Slump By K. Justin Restaino Every salesperson experiences a sales slump at one point in their career. While upsetting, sales slumps can be a great time for evaluating your sales process and making improvements. To help you do that, we’ve compiled a list of suggestions for how you can break out of your slump and reinvigorate your sales: Return to the basics Once you’ve been successful in sales, it can be easy to stop practicing the basic things that got you there in the first place. For instance, did you do more prospecting when you were just starting out? Sales slumps typically occur because there aren’t enough prospects in the pipeline. Reflect on the actions that you undertook during times when sales were strong and implement them during your slump. Watch a leader You can learn a lot from watching other successful salespeople. Spend time with a high-performing salesperson and watch how he engages with prospects. While viewing someone in your industry is helpful, it can also be instructive to watch a salesperson who works in a different one.

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Prepare for sales calls Preparing for a meeting with a prospect is important but can be time-consuming. Simplify the process by using Refresh, a free app available at the iTunes store. Refresh combs through your calendar and offers up insights on people you’re meeting with based on the updates that they’ve made to their social media accounts. These insights will give you a better idea of what’s going on in your prospect’s life and it can help you find common ground. Don’t catastrophize During a sales slump, it can be tempting to dwell on worst-case scenarios, i.e. “If this continues, I won’t be able to pay my mortgage this month.” Instead, remind yourself that slumps are a natural occurrence in sales and they often are a precursor to a significant period of sales growth. Think outside of the box Sometimes,. a slump can shake us out of our complacency. Try to vary the way that you approach your work. For example, you could prepare a new way to deal with a prospect’s objections or decide to be more diligent about following with a prospect. This period of low sales can spark just the insight that you need to shake things up in a good way. K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For more than 15 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. He may be reached by phone at (800) 544-8060, ext. 204 or e-mail justin@titanlists.com.

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with an upgraded data dictionary as the next step in helping lenders comply with the Consumer Financial Protection Bureau’s (CFPB) 2015 integrated disclosure reform. The upgrade to Compliance EAGLE provides the data field framework for lenders to incorporate the upcoming Aug. 1, 2015, changes to the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). Lenders using Compliance EAGLE will be able to run pre-closing compliance tests on every loan to ensure that the new regulations—such as the disclosure waiting period—were correctly implemented. Upcoming upgrades to Compliance EAGLE will include testing environments to provide lenders with time to adjust operations prior to the August deadline. “With Aug. 1 less than eight months out, our customers are already upgrading their compliance technology and preparing to begin testing their new operations,” said Leonard Ryan, founder and president of QuestSoft. “With the recent and upcoming upgrades to Compliance EAGLE, our customers will be able to test their compliance engines well in advance of the new rule, providing peace of mind that their systems and staff are prepared.” Compliance EAGLE is a Web-based automated compliance engine that evaluates a loan file for adherence to the full range of mortgage lending regulations. QuestSoft consistently monitors new regulations and updates the software monthly to ensure compliance with newly enacted rules and regulations. They work closely with over 15 Loan Origination Systems to ensure seamless data transfer. Adherence to CFPB regulations is performed through Compliance EAGLE’s direct integration capabilities, and is used by GSE’s, in addition to lenders and mortgage investors nationwide.

Data Facts Announces New Automatic Verification of Deposits Data Facts Inc. has announced an enhancement to their deposit verification solutions, allowing users to verify an applicant’s bank records in just minutes through AccountChek-powered by FormFree. AccountChek provides a patented automated verification of deposit and asset (VODA) solution to mortgage lenders, saving time and money while reducing fraud. This system is the only third-party asset verification acceptable to the government-sponsored enterprises (GSEs) and leading investors by collecting data directly from the financial institution. AccountChek replaces the need for borrowers to submit paper bank statements that show they have the financial resources to qualify for a mortgage,

using a propriety process of electronic certification of a borrower’s bank data. This enhanced solution provides instant results allowing lenders to reduce delays, and helps simplify the underwriting process by providing a clearer picture of their borrower’s finances. “Automated verification of deposits eliminates the need for paper bank statements, which aids in significantly reducing buyback exposure and fraud. This also helps lenders comply with the “ability-to-pay” rules. It is solutions such as these that our customers expect from us, to keep them competitive in the marketplace,” said Julie Wink, executive vice president of Data Facts.

Advantage Systems Launches New Site Advantage Systems, a provider of accounting and financial management tools for the mortgage industry, has announced the launch of its new Web site, www.mortgageaccounting.com, which offers greater detail into the company’s Accounting for Mortgage Bankers (AMB) product’s features. Advantage Systems designed the site to showcase its product offerings, giving visitors specific details about these products’ capabilities. The new site’s interface is easy to navigate, responsive to mobile devices and clearly outlines the company’s extensive history in the mortgage industry. Additionally, the Web site’s FAQ page offers precise details about the AMB system requirements and the upgraded features of Version 6.9. “Our new Web site acts as a more useful resource to visitors and better reflects our company’s updated brand,” said Brian Lynch, president of Advantage Systems. “We are proud of our new digital storefront and how it represents our company, culture and AMB product.”

CIS Integrates Verification of Deposit/Asset Technology Into Its Credit Platform CIS has announced the capability to instantly verify deposits and assets, through a patented process with AccountChek, is now integrated with the CIS credit platform. This enhancement is a solution to the labor-intensive and costly process of collecting, analyzing and verifying paper documents manually, which makes fraud detection nearly impossible. With the AccountCheck process integrated on the same platform used for accessing credit, 4506-T, Verification of Employment/Income, Undisclosed Debt Notifications, and continued on page 30

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NAMB PERSPECTIVE The President’s Corner: January 2015 Being Where You Belong in 2015

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For those of you who were in Las Vegas in September and heard my acceptance speech to become president of NAMB—The Association of Mortgage Professionals, you may remember this statement, “There are people who want to be brokers who are working for lenders and people who would like to be employees who are operating a business.” One of my chief goals as president of NAMB is to make certain people are able to work where they want to in this business. Not everyone is cut out to be a business owner. There is a lot of stress and risk associated with owning the business. You are where the buck stops. Everyone from your service providers to your lenders to your customers and even your landlord are ultimately looking to you to make things work correctly. I have found that most successful entrepreneurs are willing to sacrifice for a long time to build a profitable business. Even when your business is thriving, you have the risk of cyclical downturns. There is also the risk of legal action or regulatory actions that can have devastating effects. Being a business owner is simply not for everyone. It is so much easier to walk into a business where the support staff is already in place and the risks are on the owner. You simply move on if things are not working correctly. But, there are quite a few benefits

to being an entrepreneur. We could start with the tax benefits. You can write off many things that you cannot as an employee. You aren’t subject to the whims of the business owner or your supervisor. Sometimes, bosses can be real jerks. How many cartoons have seen where the boss is a real sweetheart? One of the biggest complaints I hear from people who have become employees after being an entrepreneur for many years is that your time is no longer your own. When you run the business, if you want to go on vacation, you just do it. As an employee, you must schedule it when it is good for the organization and how much time off you get is not your choice. Most larger companies have policies that you may not like. There may be weekly sales meetings and reports that need to be filled out. How you conduct your business is often decided higher up. There is no question that successful business owners usually make more than employees. We call it capitalism. You invest in your company and there is a return on that investment of capital as well as time. The key phrase here is “successful business owners.” Business ownership takes discipline and talent. If you possess the skills to make the business work, you will be rewarded. Of course, there some people who don’t want a big business for many reasons. They are perfectly happy operating alone or as a mom and pop company. There should be a place for those business types as well. The dilemma originators and busi-

A Message From NAMB CEO Donald J. Frommeyer Well, it looks like 2015 has arrived and we are on the start of a great new year. Many things are going to happen over the next 12 months, and I hope that you are ready. NAMB is working hard to be able to bring you lots of things in the coming year. As your CEO, I am assuming a few duties that are a little different than my role as president last year. I am now on the NAMB+ Board of Directors, working with providers that make your life easier in the everyday duties of an owner and an

originator. I am also working with the Government Affairs Committee on their issues and with the PAC Committee. Being involved as a member of the actual committees has again opened my eyes to how much these people do day in and day out for the NAMB membership. But what I want to let you know is that right now, you need to do everything that you can to make your goals and agendas a priority to reach your expectations for this year achievable right now. This is the start and if you wait until next month to get started,

nesses face today is that the environment is not as flexible as it needs to be. We one must deal with both the legal environment and the business environment. Larger companies are often the target of lawsuits. They must deal with employee issues and may have difficulty adapting to market changes. Earlier this year, many mid-sized mortgage bankers decided to call it quits and sold out to other players. Even the too-big-to-fail banks have taken sizeable losses that threatened their existence. Large investment bankers became insolvent and were swallowed or dissolved. Being large is no longer a guarantee of financial success. Smaller companies have to deal with market pressures as well. One must maintain a certain level of income to pay for the basic overhead. That is not insignificant, even for a single-person operation. Larger companies who can provide benefits and support staff and systems snip off employees of small companies. Every business must develop and maintain a working model that keeps them profitable. Then, there is the legal environment. Despite the voluminous guidance from the Consumer Financial Protection Bureau (CFPB), many questions remain about compliance. Small companies need to seriously consider an outside firm to assist them with compliance. NAMB has established a preferred relationship with Lenders Compliance Group and Brokers Compliance Group that can provide a comprehensive compliance management system. There are firms that provide pieces of the compliance puzzle, but the possible fines can far outweigh the cost of a true compliance firm. Every originator

should make certain they attend NAMB events to learn all that they can about compliance. Business owners should always attend and would do well to send all of their employees. Large firms must hire compliance staff, raising the cost of mortgages to the consumer. Many small companies have become branches of larger companies for no other reason than compliance. NAMB is working tirelessly to make every channel in the mortgage business a safe choice. Lenders and brokers alike are looking for regulatory relief. NAMB talks to and meets regularly with the CFPB and other regulators. We also meet with agencies such as Fannie Mae, FHA, VA and others. NAMB talks to members of Congress to pass good legislation and change bad laws. NAMB is one of the few trade groups in the country where every member is encouraged to participate in this process. In summary, there is no “right place” for everyone. Fortunately, you have a lot of choices. There are many origination models to choose from. It is important to find which one works for you and perhaps your team. Talk to other originators. You can network at NAMB and state events. These are some of the few opportunities where you can learn from others in the industry. When you are operating where you are comfortable, this can be a very profitable and enjoyable profession.

you are behind. The first thing that you should do is renew or join NAMB, and as an originator, renew or establish yourself as a Lending Integrity member. These two things will help you establish your professional side of the business and make it easier for customers to know that you have taken the extra step in your professional life. By putting the NAMB logo and the Lending Integrity Seal on all of your solicitation, business cards, e-mails and such, you are telling the recipients that you are the professional that the customer is looking for to do business with each and every day. And then you get the extended benefits of NAMB membership. You get information about upcoming rules and laws as they go into effect. You get to attend Webinars that will help you, you get

Government Affairs updates and most of all, and you get the additional knowledge to help you be a better originator or boss. Professional Memberships cost $120 per year. Regular memberships cost $50 per year. Just look at all of the upsides you get for $10 as a professional member or $4.17 as a regular member per month. You could probably pay this by skipping that extra cup of coffee once every week. So do not delay. Join today and embark on the journey to be more successful in 2015.

John Councilman, CMC, CRMS NAMB President president@namb.org www.joinnamb.com

Donald J. Frommeyer, CRMS is chief executive officer for NAMB—The Association of Mortgage Professional. He may be reached by e-mail at namb.ceo@namb.org.

NAMB PERSPECTIVE Let’s Hit the Hill By Richard M. Bettencourt Jr., CRMS, CMHS Happy New Year! I hope each of you had a wonderful, safe and happy holiday season! It’s amazing how quickly these years fly by us, it seems like just yesterday it was January 2014 and we were preparing to head down to Washington, D.C. to lobby for change. Now, it’s that time of year again! This article won’t be long, it’s been a VERY quiet environment in Washington, D.C. Since the mid-terms, it’s been a bit of a “Who’s Who,” “Who’s on what,” “Who might help,” and “Who might not.” Right after the mid-terms, you have the holiday season (Thanksgiving, Chanukah, Christmas and New Year’s). All of the Congressman and Senators have been sworn in, they’re now settling into their offices, and finding out what committee’s they’ll be sitting on! So, with all this going on, we haven’t had much contact with our elected officials. I said “much,” I didn’t say “none!” Even though it’s been quiet, your Government Affairs team has been very busy.

I had a great meeting in Washington, D.C. in early December. Our lobbyist, Roy DeLoach, and I were down in D.C. meeting with several industry regulators and congressional officials continuing to educate them on the impact the three percent points and fees cap have on our low- to moderate-income homeowners, the impact to small business, and the disparity that exists in the residential lending environment. Our meeting went so well, that we’ll be back in D.C. at the end of January for a series of follow ups! As I’ve said since I took this position, my primary goal has been to lobby to correct this issue and create a level playing field for our consumers and members. More details to follow and we’ll detail the outcome of our meetings at our Legislative Conference in 2015! So, let’s talk about the Legislative & Regulatory Conference! We have selected our dates and we are extremely excited about this year’s conference. I firmly believe this could be one of the most important conferences we’ve had in many years! The dates for our 2015 Conference will be Sunday-Tuesday, April 12-14. We are finalizing the hotel and their contract has been sent to our

By Fred Kreger, CMC

1. Which side of mentoring are you on? 2. Should you be on both sides? 3. Should you be looking to be mentored and then mentoring someone? When I first started in this industry and my involvement in the California Association of Mortgage Professionals (CAMP) and now NAMB, I had a few mentors who guided me into becom-

taken this step. I’ll leave you with some thoughts of a poem I read called:

around, pack it up, and call it quits. Those times tell you that you are pushing yourself that you are not afraid to learn by trying.

DREAM BIG. AUTHOR UNKNOWN If there were ever a time to dare, to make a difference, to embark on something worth doing, It is now. Not for any grand cause, necessarily—But for something that tugs at your heart, something that’s your inspiration, something that’s your dream. You owe it to yourself to make your days here count. Have fun. Dig deep. Stretch. Dream big. Know, though, that things worth doing seldom come easy. There will be good days, and there will be bad days. There will be times when you want to turn

Richard M. Bettencourt Jr., CRMS, CMHS of Danvers, Mass.-based Mortgage Network is Government Affairs Committee Chair of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (978) 777-7500 or e-mail rbettencourt@mortgagenetwork.com.

I personally thank you for your ongoing contributions to our organization, and am I proud to lead and mentor you in any way I can. Fred Kreger, CMC is the branch manager at American Family Funding, a Division of American Pacific Mortgage. He is also a past statewide president of the California Association of Mortgage Professionals (CAMP) and currently is the vice president and Government Affairs vice chairman for NAMB—The Association of Mortgage Professionals. He may be reached by phone at (661) 505-4311 or e-mail fred.kreger@affloans.com.

Why Do I Need NAMB?

l NAMB Testifies Before Congress l Full-Time NAMB Lobbyist on l NAMB Works With the CFPB Capitol Hill l NAMB Participates in Multiple l NAMB Protects Your Business Regulatory/CFPB Panels l NAMB Forms Industry Coalitions l NAMB Webinars l NAMB Education For detailed information, visit www.namb.org.

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It is now the New Year. The champagne corks have all popped. Our resolutions have been written for ourselves. However, what about what we can do for others. In a more direct thought, what can you do this next year for your industry? When I think of the best way that we as members of NAMB—The Association of Mortgage Professionals can do on a daily basis, it is in mentoring one another. We all have the greatest opportunity to be on both sides of this process. So ask yourself these questions:

ing a respected loan originator within a relatively short period of time. However, even after my initial mentors, I continue today reaching out to new and past mentors to give me even better tools in order to be a better originator, manager and leader. I choose to continue learning and not accepting mediocrity as the way to go through life and career. John Maxwell points out in his book, Fifteen Invaluable Laws of Growth, “Possess a teachable spirit and be accountable for what you’ve learned.” He also points out; “Every person who can help is not necessarily the right person to help you. You must pick and choose. And so must they.” Think about your own contributions as a mentor or one that is mentored by someone. So this new year, determine which side or both sides of the process you belong. You will grow personally and professionally. You will also create a better bond with your fellow NAMB members. Thus, our organization will be stronger and better for you having

that there is an initiative gaining momentum in Congress to reinstate it, and we need to support this agenda as it supports our veterans who have supported us for hundreds of years! We have a whole new world in D.C., a world that, with the right meetings and with the right people, could allow for some changes to existing laws that directly impact our industry! So, we need as many members as possible to take some time out of their schedule and join us in April to lobby for change! Well, I’m sorry this was a short update, but, we’re going to have some rather long ones this year as move towards the end of 2015 and what I hope to be the Year of the Broker!! I beg that each of you will take three days out of your work schedule and join us for an amazing conference! If you have any questions, please don’t hesitate to call or e-mail me! I can be reached at governmentaffairs@namb.org or call me at (978) 304-0818. Thanks again and we’ll see you in April!

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Start Off the New Year Mentoring

NAMB President John Councilman for his signature. Please look for an important message from our Communications Chair John Hudson with full details on the event. The NAMB Government Affairs team is working on speakers and finalizing the agenda, which we are hoping to have by the end of January or the first week in February. Now’s the time to start making those congressional appointments! Our Government Affairs team is also working on our talking points for our elected officials. Two talking points I know for certain that will be on our talking point are the three percent points and fees cap revision, and VA loan limits. I think we’re very close to getting some positive movement on our quest to remove broker compensation from the three percent points and fees cap. It’s disclosure has been removed from the new Loan Estimate Form being implemented in August 2015, and I think if we collect compelling data showing that it’s inclusion is not beneficial, we could see some revisions. As a major supporter of our veteran’s community, we need to lobby and work with Congress to reinstate the VA highbalance loan limits. There were 48 counties in 17 states impacted by the omission of this provision from the Omnibus Funding Bill. Now, it appears

NAMB PERSPECTIVE My Goal for 2015 By John Councilman, CMC, CRMS It seems hard to believe but another year has slipped by. The year 2015 is here already, whether we were ready or not. As I look back at 2014, I asked myself, “If I could have changed anything about what I did in 2014, what would I change?” Have you asked yourself that question? I

thought long and hard about this because you probably know that I believe every one of us can improve, and should, every year. That doesn’t mean we make more money this year than last or we accomplish more great things. It simply means that we grew during the year and we learned things we didn’t know before. For those of us who are Type-A personalities, we have to always understand that there are other people around us. We don’t need to do everything and they

may be able to do things better than we can if we give them a chance. This is an area where I have had a problem. I have a tendency to micro-manage. I learned that actually weakens an organization rather than strengthens it. People you work with hate it. You can’t possibly do it all so things don’t get done. My goal for 2015 is to learn how to work with and have faith in the people I have been given as partners. Will they fail? Sometimes. Will they disappoint me? A few times. But, there will be times when they amaze me. Like children, we all need a chance to fail and a chance to

succeed. I hope in 2015 I can master the technique of allowing others to grow. If I have done my job, they will grow to even greater heights than those who preceded them. That is my goal for 2015. Pick out an area where you need improvement. If you can resolve to do that, you will have grown in 2015. John Councilman, CMC, CRMS of AMC Mortgage Corporation in Ft. Myers, Fla. is president of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (239) 267-2400 or email jlc@amcmortgage.com.

The NAMB Certification Program

General Mortgage Associate

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The Certification Committee of NAMB— The Association of Mortgage Profes-sionals has been very productive to date in 2014, obtaining many new loan officers who have received the Certified Mortgage Consultant (CMC), Certified Residential Mortgage Specialist (CRMS) and/or General Mortgage Associate (GMA) designations. NAMB will continue to grow its Certification Program, to enhance its value to our designees, and fine-tune its structure and procedures. The goal of the NAMB Certification Committee is to raise the number of certified mortgage professionals to 1,000 by July 2015, and to launch a marketing campaign to both industry members and the public at-large about the need to utilize a nationally designated mortgage professional. For more information on NAMB’s Certification Program, contact NAMB Certification Committee member John Stearns, CMC, CRMS by e-mail at jstearns@afmsi.com or call (262) 478-1154. Alabama Linda McCoy, CRMS Penny H. Phillips, CRMS Arizona Rocke Andrews, CMC, CRMS Cal Carlson, CMC, CRMS Bert Carpenter, CMC, CRMS, GMA Randall E. Hotchkiss, CMC William R. Howe, CMC, CRMS Brian Jacenko, CMC Ross Jameson, CMC Gilda Kemp, CRMS Gary G. Kiehlbaugh, CRMS Hratch K. Panosian, CMC Joseph P. Paonessa, CMC Mark L. Ross, CMC, CRMS Gary N. Smith, CMC

Stanley Y. Wang, CMC, CRMS Linda M. Wright, CMC Arkansas Shane Lester, CMC, CRMS California Fred Arnold, CMC Michael Dorr, CRMS George L. Duarte, CMC Jane Durant-Jones, CMC Virginia Ferguson, CMC Linda Fleischmann, CMC Dean Henderson, CRMS Al Hensling, CMC Peaches Jensen, CMC Fred Kreger, CMC Jessica Lanning, CMC, CRMS Joshua Lewis, CMC C. Kent Miller, CMC James O’Dea, CMC Peter Ogilvie, CMC Nancy Osborne, CMC, CRMS Donald Petty, CMC Robert S. Schwab, CMC Guy Schwartz, CMC Christopher Taylor, CMC Richard Vujovich, CMC Susan Wingate, CMC Colorado Kay A. Cleland, CMC, CRMS Tarius L. Derritt, CRMS Gary Salter, CMC Michael Thomas, CMC Connecticut Debra Killian, CRMS Lisa Moriello, CMC, CRMS Hector Rodriguez, CMC Lou-Ann Smith, CRMS District of Columbia Diane B. Cook, CRMS Jan Hix, CMC

Certified Residential Mortgage Specialist

Certified Mortgage Consultant

Florida Tillis Churchill, CRMS Frank Cicione, CMC, CRMS John L. Councilman, CMC, CRMS Matthew Daly, CRMS Joseph L. Falk, CMC, CRMS Dan C. Longman, CRMS Julie Wheeler, CRMS Kenneth Zorovich, CRMS

Indiana Frank Andriole, CRMS Donald J. Frommeyer, CRMS Robert E. Sweeney, CRMS

Georgia Michael Sean Collett, CRMS Deborah L. Switts, CMC Frank P Torch, CRMS

Kansas A.W. Pickel, III, CMC Lynn Smith, CMC

Hawaii Donna Dodd, CRMS Patricia K. Morimoto, CMC Glenn Takasato, CMC Barbara Welsh, CMC Illinois Kenneth J. Amstutz, CMC, CRMS Gilbert M. Antokal, CRMS Brian Augustine, CRMS Leticia Avina, CRMS Jackie Bulava, CRMS Angelo Cusinato, CMC, CRMS Tony Davis, CMC, CRMS John Dedes, CRMS Dorothy P. Desmond, CMC, CRMS Brian Dixon, CRMS Charles E. Eck, CMC Adenike Fasanya, CMC Carol Gardner, CMC, CRMS Jorge G. Gomez, CRMS Scott T. Guzik, CMC Robert J. Kenney, CRMS Steven M. Levitt, CRMS Robert C. Moos, CMC, CRMS Andrew G. Palomo, CMC, CRMS Terry Pogofsky, CRMS Judith Santefort-Frey, CRMS Shelly Straim, CMC Tory Tarsitano, CRMS Prince Williams, Jr., CRMS

Iowa Charles D. Chedester, CRMS Kevin Kirsch, CRMS Brian E. Lampe, CMC, CRMS

Kentucky Nicolas M. Ellis, CMC, CRMS Louisiana Michael Anderson, CRMS Tracy Lynn West, GMA Maine Elizabeth Monaghan, CMC Maryland Theresa Amos, CRMS Adrian F. Citroni, CRMS Jason Fox, CRMS Eric D. Gates, CRMS Patricia McGill, CMC Rick Rall, CMC Craig Strent, CRMS Ken Venick, CMC Massachusetts Richard M. Bettencourt, CRMS George F. McLaughlin,III, CMC, CRMS Michigan Timothy Baise, CMC Chip Cummings, CMC Eric Kistka, CMC, CRMS Pava J. Leyrer, CMC, CRMS Minnesota Jason Decker, CRMS Christopher Dueffert, CRMS

NAMB PERSPECTIVE Shannon Roepke, CRMS Jayne B. Sims, CRMS J.J. Sims, CRMS Mississippi Robert D. Capps, CRMS Daniel J. D’Amico, CRMS Vickie S. Graves, CRMS Kenneth A. McNeal, CRMS Missouri Andrew Conner, CRMS Montana Rni Arnett, CRMS, GMA Tavell Peete, CMC, CRMS

Brian C. Short, CMC, CRMS, GMA Texas Harry H. Dinham, CMC John H. Hudson, CRMS Jolene Jaehne, GMA Olga Kucerak, CRMS Karl LeBlanc, CRMS Henry Lesmeister, CRMS Stacy London, CMC Terry J. Morrow, CMC Robin C. Morton, CRMS Jim Pair, CMC

William Parker, CMC, CRMS Jerry Rutledge, CMC April Schummer, CRMS Jeffrey Shealey, GMA

New Jersey Richard L. Jarocki, CMC New Mexico Ginger Bell, CRMS Wes Moore, CRMS New York Jim Barry, CMC Donald Henig, CMC Seth Rapport, CRMS Jessica Schoen, CRMS

Virginia Bernice Brown, CRMS Jason Crigler, CRMS

Oregon Andy Harris, CRMS Matt Jolivette, CMC Tami Konkel, CRMS Stephen C. Salveson, CRMS Kerry L. Vasquez, CMC Pennsylvania Wayne Angelo, CRMS Michael J. D’Alonzo, CMC George Hanzimanolis, CRMS James E. Martin, CMC, CRMS Stephen M. Matthews, CRMS Mark Mazzenga, CMC Kevin McElwain, CMC Daniel Thierry, CRMS Deborah A. Webb, CMC South Carolina James Taylor, CMC Tennessee Sheila Lipman, CRMS

Wisconsin John L. Stearns, CMC, CRMS

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, Happy New Year! Hopefully you are not totally sick of hearing that just yet. For me, embarking upon a new year is always an exciting proposition, with new opportunities and challenges abound. In this first month of the New Year, I want to challenge you and offer you an opportunity to try something new that I believe will help your business and help you save money. Below you can see a list of current NAMB+ Endorsed Providers. I strongly urge you to visit www.NAMBPlus.com TODAY to learn more about these NAMB+ Endorsed Providers and see all of the tremendous money-saving discounts they are offering on products and services we, as mortgage professionals, use every day! Although you might not have a need for all of the products and services offered, I am confident that you will find tremendous value in working with at least one of these companies whether you are an originator, manager or owner.

Agility Media offers NAMB members 20% off account setup or social media setup.

However, if for some reason you cannot ﬁnd a current NAMB+ Endorsed Provider that is offering a product or service that you are shopping for, or if you don’t believe the special pricing and discounts being offered will save you money, please contact me immediately. We are always looking to expand upon our list of Endorsed Providers and it is critically important to me and to our entire Board of Directors that we continue to be a valuable resource for NAMB Members.

John G. Stevens, CRMS, President NAMB+, Inc. John@JohnGStevens.com NAMBPlus.com

23 See below for a complete listing of the current NAMB+ Endorsed Providers and visit NAMBPlus.com for more information.

NAMB members receive a 19% discount for CopyTalk services.

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.

NAMB members receive a 15% discount on all Custom Canvas Prints products and services! BetterLoanOfﬁcers.com is free to get started with the option to upgrade if you’d like. As an NAMB member optional upgrades are discounted by 10%.

NAMB members get special pricing plus 1 month FREE. LoanSquatch allows NAMB members to reduce their monthly pricing from $19.99 per month to $9.99 per month and the ﬁrst month is just 99 cents!

As an NAMB member, Birchwood Credit Services will waive the sign up fees! It’s a “NO RISK” way to experience the Birchwood difference ﬁrsthand!

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

BusinessETouchCRM provides a Cloud based CRM for only $29.95 a month for NAMB members.

NAMB Members receive a 10% discount off regular prices for all CallFurst.com products and services.

The Bond Exchange is a national surety agency specializing in providing mortgage license bonds to thousands of mortgage professionals across the country.

LoanTek’s platform is designed to save time, create better leads, and convert leads into new business. USA Business Lending is the nation’s premier brokerage ﬁrm representing over 3500 lenders. NAMB members get a $300 discount on coaching. NAMB members receive exclusive discounts training events, including live seminars and internet-based web shops

NAMBPLUS Login Instructions

NAMB members receive a 10% discount on Path2Buy’s one-on-one coaching service.

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

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

*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!

n National Mortgage Professional Magazine n JANUARY 2015

Ohio Kevin Ary, CRMS Dennis Fisher, CMC, CRMS Robert Mahaffey, CRMS Jim Nabors, II, CMC, CRMS Erick A. Parker, CMC, CRMS Duy Vu, CRMS Phenon Walker, CRMS

West Virginia Marc Savitt, CRMS

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North Carolina Donald E. Fader, CRMS Neill E. Fendly, CMC David M. Overcast, CRMS Jeffrey Trout. CRMS

Washington Stephen Bozick, CMC Edward Irwin, CMC Patricia L. Naselow, CMC

Utah David Luna, CRMS Nathan Pirerce, CRMS John Stevens, CRMS

Nebraska Brent Rasmussen, CRMS New Hampshire Michael Loffredo, CMC Paul R. Sliker, CMC

Richard L. Gilbert, CRMS David E. Shelor, CRMS

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How to Tap the “House-Buying Generation” By Bubba Mills f you think about your future as a mortgage lender, you should be thinking about the generation of Millennials—and thinking about

them a lot. Why? Because a new report says that generation— those born in the early 1980s to the early 2000s—will be known as the “the house-buying generation.” The report, from Nielsen and the Demand Institute, says Millennials will spend around $2 trillion on home purchases in the next five years. Today, there are only about 13 million Millennial households in the U.S., but by 2018 that number will rise to 22 million. What’s more, the report says that eight in 10 Millennials say they plan to own their own home someday. So the question becomes, how do you reach Millennials? Here are a few tips:

mer. Investing in search engine optimization (SEO) will likely be money well spent. And, register your business on local business directories and review sites so you can be found online.

2. Think mobile So exactly how do Millennials conduct their online searches? Mostly on their mobile devices. In fact, a full 26 percent of younger buyers who ultimately purchased a home, found that home via a mobile device, according to the National Association of Realtors (NAR). Be sure your Web site and all digital communications are viewable on mobile devices.

3. Think testimonials Millennials don’t trust advertising so they look to more trustworthy sources. In fact, 95 percent reported their friends are the most credible source of information. Take time to get testimonials from clients and use them in all of your communications.

5. Think helpful In the last tip, I mentioned helpful content. For Millennials, this is vital. Millennials are prudent and take more time than other age groups to research all things real estate— often starting their search six months in advance of buying. That means they’re seeking relevant and helpful information. Be sure your communications provide valuable information about the mortgage-lending process. Consider offering borrower guides and mortgage checklists.

6. Think video If a picture is worth a 1,000 words, then a video is worth 2,000 words. Millennials like videos—it’s no wonder YouTube is now the second largest search engine. Google says real estate videos on YouTube were viewed 13 percent more in 2014 than in 2013. Consider how you can market yourself and your services via video.

1. Think search

4. Think social

Let me hear from you. How much have you thought about Millennials as a group? How is your marketing geared toward this generation? What can you start doing to appeal to and capture more Millennials?

When it comes to homebuying, younger buyers almost always start the process by conducting searches on the Internet. Google reports half of all Millennials in the United States visited real estate-related Web sites this sum-

Millennials spend an average 3.2 hours a day on social media, so stay active on these channels and share helpful content that prompts them to engage with you and become an advocate.

Bubba Mills is executive vice president of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 957-8353 or visit www.corcorancoaching.com.

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FHA Reduces Mortgage Insurance Premium by 0.5 Percent By Phil Hall resident Barack Obama has instructed the Federal Housing Administration (FHA) to lower its annual mortgage insurance premiums from 1.35 percent to 0.85 percent. In a speech delivered Jan. 8, 2015, at Central High School in Phoenix, Ariz., Obama stated this 0.5 percent deduction will spur homeownership rates to rise. “Over the next three years, these lower premiums will give hundreds of thousands more families the chance to own their own home, and it will help make owning a home more affordable for millions more households overall in the coming years,” Obama said. In advance to the official announcement, the White House released data stating this new 0.5 percentage point reduction in premiums will generate an average savings of $900 annually for all new FHA borrowers. The administration projects that more than 800,000 FHA

borrowers will benefit from these lower rates during 2015 while creating “opportunities for 250,000 new homeowners to purchase a home over the next three years.” The President also stressed that this FHA policy change should not been as the prelude to another round of irresponsible behavior in the housing market. “If you’re looking to take advantage of these lower rates, that’s great,” Obama said. “On the other hand, don’t buy something you cannot afford— you’re going to be out of luck. These rates are for responsible buyers. We’re not going down the road again of financing folks buying things they can’t afford—we’re going to be cracking down on that.” This new policy shift does not require Congressional approval, and it can be seen as part of the Administration’s strategy of using Executive Branch action to promote its domestic policies while avoiding confrontations with the Republican-controlled Congress. Reaction to this change was mostly positive among industry leaders and

observers, although some expressed the need for additional changes. “As an independent mortgage banker whose business includes a significant amount of FHA lending, I can attest that the 50 basis point reduction in FHA’s annual premium will have a significantly positive impact for my borrowers and the housing market,” said Bill Cosgrove, chairman of the Mortgage Bankers Association (MBA) and chief executive officer of Union Home Mortgage. “Specifically, this will help first-time homebuyers by making FHA loans more affordable. Given the timing, just as we begin the spring homebuying season, I think today’s announcement is just what the market needs.” “Lower premiums will make home loans more affordable for qualified borrowers, particularly first-time homebuyers, and help to alleviate tight credit conditions in the mortgage market,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB). “This prudent course reflects a recent actuarial report that FHA is back in black and strengthening its financial

health. The new premium structure will allow FHA to continue building its reserves.” “Reducing FHA mortgage insurance premiums will make it easier for hundreds of thousands of homebuyers to get a mortgage and provide greater access to homeownership for historically underserved groups and credit worthy families,” said California Association of Realtors (CAR) President Chris Kutzkey. “Moreover, this shift in policy will also increase the volume of borrowers using FHA-backed loans, while continuing to contribute to the solvency of FHA’s Mutual Mortgage Insurance (MMI) Fund and making the dream of homeownership a reality for millions more Americans.” “Until now, FHA has been charging families far more for their mortgages than the cost of the risk they present to the insurance fund,” said Julia Gordon, director of housing finance and policy at the Center for American Progress. “The agency’s significant change is a bold step forward that will help hundreds of thousands of families access

National Association of Hispanic Real Estate Professionals (NAHREP). “Fannie Mae and Freddie Mac currently account for more than 80 percent of the market,” Acosta said. “Reducing FHA fees is an important first step, but getting the GSEs back in the first time homebuyer market would have an even greater impact.” And a former FHA executive also signaled the need for further realignment of policy. “I would hope that FHA and the Office of Management and Budget (OMB) would revisit the move toward risk-based pricing, an approach that would further the objectives of this premium reduction, by creating a cost

structure that would attract the appropriate mix of borrowers to balance out the overall portfolio, similar to the common practices of all other insurance companies,” said Brian Montgomery, former FHA commissioner, and cofounder and vice chairman of The Collingwood Group LLC. Not surprisingly, Republicans on Capitol Hill were not enthusiastic. “The federal government should be winding down its involvement in the mortgage business, not engaging in a race to the bottom, and it is absolutely imperative that Congress follow through on housing finance reform this year,” said Sen. Bob Corker (R-TN). California Rep. Ed Royce (R-CA), a

senior member of the House Financial Services Committee, echoed Corker with near-verbatim language. “The President’s decision reflects a race to the bottom between the FHA and the GSEs in which the private sector is crowded out and taxpayers are left holding the bag,” he said. “The financial crisis is proof positive that an increased government presence in housing distorts the market and promotes the very boom-and-bust cycle we are trying to avoid.” Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.

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the safe and affordable mortgage credit they need to become successful, longterm homeowners, ultimately strengthening the housing market and the overall economic recovery.” “We are optimistic that more affordable FHA loans will have a positive impact on first-time buyers who have been entering the market at a lower than normal rate. Over the past four years, as the fees increased, the percent share of first-time buyers using FHAbacked loans shrank from 56 percent to 39 percent,” said the National Association of Realtors (NAR) in a statement. “NAR estimates that a reduction in the annual MIP of 0.50 to 0.85 percent from the current 1.35 percent would price-in an additional 1.6 million to 2.1 million renters along with many trade-up buyers, resulting in 90,000 to 140,000 additional annual home purchases.” “The Federal Housing Administration’s plan to reduce annual mortgage insurance premiums is a welcome step in boosting our housing market, accelerating our nation’s economic recovery, and making housing more accessible for everyone,” said Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights. “Lowering premiums will put money back into the pockets of millions of borrowers, and will enable more creditworthy families to obtain loans.” “We applaud President Obama for this positive step, which will be beneficial to working families striving to climb the economic ladder,” said John Taylor, president and CEO of National Community Reinvestment Coalition (NCRC). “Throughout its history, FHA has played a key role in helping working people to access homeownership and build wealth through equity. This reduction in FHA mortgage insurance premiums will serve to help make homeownership more affordable and attainable for many families. We are pleased that the administration is showing a commitment to homeownership opportunity.” But Taylor also raised concerns that more work was needed. “Unfortunately, the administration has not yet eliminated the requirement that most FHA borrowers pay for mortgage insurance for the life of the loan,” Taylor continued. “Typically for conventional loans, when borrowers reach a 20 percent equity threshold, they have the ability to cancel their mortgage insurance. For most FHA borrowers, this option does not exist. This unfair policy for FHA borrowers ultimately amounts to a poor tax. We call on the administration to end this recent practice. In order stimulate the housing market and ensure broad access for creditworthy borrowers it is also critically important for the Federal Housing Finance Agency to reduce excessive guarantee fees and loan level price adjustments at Fannie Mae and Freddie Mac.” Taylor’s sentiments were shared by Gary Acosta, co-founder and CEO of the

Robust Risk Management The Cornerstone of a Strong Mortgage Lending Industry By Kenneth M. Donohue

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While no industry is immune to fraud, few have as many vulnerabilities for fraudsters to exploit as the mortgage lending industry. In addition to the inherent risk associated with lending large sums of money, the mortgage industry involves numerous individuals (e.g., brokers, lenders, appraisers, underwriters, accountants, real estate agents, loan originators, settlement attorneys, land developers, real estate investors, etc.) who have a high level of access to financial documents, software and systems, confidential data and licensure information. These various access points are vulnerable to wrongdoers bent on committing fraud. Time and again, perpetrators have demonstrated their aptitude for eluding legislation and regulations by modifying existing schemes or devising new schemes to exploit loopholes. As the Great Recession showed us, much rides on the health and stability of the mortgage industry; it is therefore imperative that the industry takes the measures necessary to protect itself—and the consumers it serves—against fraud. My personal experience with mortgage fraud began in 1990 when I joined the newly created Resolution Trust Corporation, Office of Investigations, an off-shoot of the Federal Deposit

Insurance Corporation (FDIC), which was created to address the savings and loan (S&L) crisis. Criminal and civil fraud cases were brought against such fraudsters as Charles Keating, Lincoln Savings and Loan, Phoenix, Ariz.; David Paul of Centrust S&L, Miami, Fla.; and Michael Milken, the junk bond king, New York, N.Y. Like many others, I thought we had learned our lesson and that a crisis such

angering taxpayers, who, in turn, demanded stricter oversight of the financial services industry. The government responded with legislation such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, which aims, in part, to stem fraudulent behavior by enhancing the transparency and accountability of the financial services sector. From 2001 to 2010, I served as the

enterprises (GSEs), Fannie Mae and Freddie Mac. During my tenure, we identified, investigated and prosecuted appraisers, settlement agents, mortgage brokers, and any other actors who perpetrated mortgage fraud. From my vantage point, a number of trends emerged that created an environment in which fraud schemes flourished: l Lenders with high rates of defaults lacked strong qualitycontrol platforms. Such lenders focused more on loan volume than on evaluating the risk of those loans defaulting due to the financial instability and other risk factors of the parties involved in the transactions. l Some lenders lacked adequate processes for performing due diligence and ongoing monitoring of third parties. l Policy-makers and regulatory agencies approved and encouraged no-documentation and low-documentation loan programs, which compromised loan-quality assurance.

as the S&L debacle could not—or would not—occur again because the federal regulatory agencies could not—and would not—allow it to happen. Fast-forward to the 2000s, the inflation of the housing bubble, and the subsequent bursting of that bubble. The 2008 bailout added fuel to the fire by

Inspector General for the U.S. Department of Housing & Urban Development (HUD). This position included oversight of the Federal Housing Administration (FHA) and Office of Federal Housing Enforcement and Oversight (OFHEO). OFHEO had oversight of the government-sponsored

The S&L crisis of the 1990s and the mortgage crisis of the 2000s serve as cautionary tales that fraud schemes are resilient and easily adapt to fluctuations in the economy and changes in lending policies. The continued sluggish housing market is proving to be an attractive environment for mortgage fraud perpetrators who

are devising new schemes to exploit gaps in the mortgage lending market. According to the CoreLogic Mortgage Fraud Report, mortgage fraud has risen 3.2 percent in the last year. For the 12 months ending the second quarter of 2014, the report estimates the total value of applications with fraud or serious misrepresentations at $19.8 billion1. The cycle of fraud needs to be stemmed for the sake of the industry, the consumers it serves, and the economy as a whole. Over the past few years, I have spoken at several mortgage lending industry events. Each time, I have emphasized the need for lenders to continue to enhance their risk management practices, including performing due diligence before contracting with third-party service providers and carrying out ongoing monitoring of the vendors thereafter. Service providers who are unknowledgeable regarding consumer financial protection laws or have weak internal controls pose a threat to consumersâ&#x20AC;&#x201D;and therefore, the lenders, as they are accountable for managing vendor relationships. Whether it is appraisers, settlement agents, mortgage brokers, firms that conduct loan-level quality control reviews, or anyone else, lenders must take action to monitor the integrity of vendors and act so that they can demonstrate that they have adequate policies and procedures in place. Reinforcing the call for more robust

â&#x20AC;&#x153;The S&L crisis of the 1990s and the mortgage crisis of the 2000s serve as cautionary tales that fraud schemes are resilient and easily adapt to fluctuations in the economy and changes in lending policies.â&#x20AC;? fraud mitigation, the Consumer Financial Protection Bureau (CFPB) released Bulletin 2012-03 in April 2013. The Bulletin articulates the Bureauâ&#x20AC;&#x2122;s expectation that CFPB-supervised institutions (i.e., large banks, mortgage lenders or servicers, student lenders, payday lenders, large debt collectors, or debt buyers) have an effective process for managing the risks of service provider relationships and may be held responsible for the actions of companies with which they contract. The bulletin makes it clear that the CFPB would take a close look at service providersâ&#x20AC;&#x2122; interactions with consumers, and would hold all appropriate companies accountable when legal violations occur. In the Bulletin, the Bureau recommends that supervised financial institutions take steps to ensure that business arrangements with service providers do not present unwarranted risks to consumers. Steps include: 1. Conducting thorough due diligence 2. Requesting and reviewing policies, procedures, internal controls and training materials 3. Making sure contracts with service

providers include clear expectations about compliance and appropriate and enforceable consequences for violations 4. Establishing internal controls and ongoing monitoring 5. Taking prompt action to address any problem identified through the monitoring process Another consideration for lenders is the protection of confidential data. The recent well-publicized cybersecurity breaches experienced in other industries, most notably retail (i.e., Home Depot and Target), serve as stark reminders of the need to be ever-vigilant with regard to data protection. In this light, performing thorough due diligence and ongoing monitoring are of paramount importance given the fact that mortgage banking employees and vendors have access to enormous amounts of privileged information of their applicants. These professionals have the ability to cause significant harm to a borrower; therefore, consumers deserve an expectation that whatever information they provide is handled safely and securely. In the

mortgage process, the consumer is at a great disadvantage dealing with a complex transaction involving many moving parts, voluminous documentation, and many different parties managing the transaction for them. Consequently, lenders and vendors must place the rights and expectations of consumers first. Lenders must be in the position to pull the plug on relationships and even stop loans from closing if they suspect wrongdoing. The CFPB has made it clear that lenders are responsible for ensuring that their relationships with service providers do not pose unwarranted risk to consumers and will be held accountable for mismanaging vendor relationships. Finally, I do not propose that fraud management and third-party monitoring are the sole challenges for this industry to once again gain its critical footprint. I do, however, believe that lenders need to address these issues, be sensitive to consumer expectations, and manage their relationships with vendors accordingly. The Honorable Kenneth M. Donohue is a director and senior advisor with CohnReznick Advisory Groupâ&#x20AC;&#x201C; Government Services. He can be reached by phone at (301) 280-6460 or e-mail kenneth.donohue@cohnreznick.com.

Footnote 1â&#x20AC;&#x201D;CoreLogic 2014 Mortgage Fraud Report. October 2014. Nov. 7, 2014, www.corelogic.com.

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CFPB Proposes Expanded Foreclosure Protections By Ray Hagan

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The Consumer Financial Protection Bureau (CFPB) recently issued a proposed rule directed toward mortgage servicers, intended to expand foreclosure protections for mortgage borrowers. According to the CFPB, the proposal would require servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, provide additional servicing transfer protections, and establish steps to protect borrowers from a wrongful foreclosure sale. In this proposed rule, there are nine major topics which are outlined below. l Successors in Interest: There are three sets of rule changes relating to successors in interest including applying all of the Mortgage Servicing Rules to successors in interest once the successor’s identity and ownership interest in the property has been confirmed. l Definition of Delinquency: Create a general definition of delinquency that would apply to all of the servicing provisions of Regulation X as well as Regulation Z provisions regarding periodic statements. l Requests for Information: Amend how a servicer must respond to requests for information asking for ownership information for loans in trust for which Fannie Mae or Freddie Mac is the trustee, investor, or guarantor. l Force-Placed Insurance: Revise the required disclosures when a servicer adds force-placed insurance and the borrower has insufficient, rather than expiring or expired, insurance coverage. l Early Intervention: Clarify the live contact and written notice obligations. l Loss Mitigation: The proposal includes, but is not limited, to the following: 1. Mandate servicers to meet the loss mitigation requirements more than once in the life of a loan for borrowers who become current after a delinquency; 2. Allow a servicer to join the foreclosure action of a senior lienholder by altering the existing exception to the 120-day prohibition on foreclosure filing; 3. Require that servicers must promptly provide a written notice once a complete loss mitigation application is received; 4. Address how servicers obtain information that is not in the borrower’s control; 5. Allow servicers to offer a short-term repayment plan based upon an evaluation of an incomplete application; 6. Clarify that servicers may stop collecting information from a borrower in regards to a loss mitigation option after confirming the borrower is ineligible for that option; and 7. Address how loss mitigation procedures and timelines apply to a transferee servicer. l Prompt Payment Credit: Clarify how periodic payments made by consumers, who are performing under temporary loss mitigation or permanent loan modification programs, must be handled. l Periodic Statements: Clarify disclosure requirements relating to accelerated loans, loans in temporary loss mitigation programs or have been permanently modified; require servicers to send modified statements to those who have filed for bankruptcy; and provide an exemption for servicers for charged-off mortgage loans provided that the servicer does not charge additional fees or interest on the account and provides a final periodic statement. l Small Servicer: Modify the definition by excluding certain seller-financed transactions from being counted toward the maximum allowance loan limit. Comments on the proposed rule must be received on or before March 16, 2015. Ray Hagan is senior regulatory compliance analyst at AllRegs. First introduced in 1989, AllRegs is used by virtually all of the top 100 lenders, as well as throughout numerous governmental agencies, including Fannie Mae, Freddie Mac, the FHLBs, FHA, VA, RHS, Ginnie Mae and more. For additional information, call (800) 8484904 or visit www.allregs.com.

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more, clients can instantly verify banking deposits and assets with direct source data. “The ability to instantly verify deposits and assets presents significant cost-savings and productivity gains, in addition to reducing buy-back risk with immediate fraud detection. The ease-of-use and security provided through the AccountChek process eliminates the frustrating delays caused by redundant requests for paper statements when applying for financing,” said Nancy Fedich, CIS CEO. “The AccountChek process is paperless and occurs instantly with the direct data source in a completely secure, encrypted environment.” AccountChek uses patented technology to securely link the borrower’s accounts. Credentials are entered by the borrower, validated with the account holder directly, and then permanently deleted from the encrypted environment upon completion of the request. Customer information is never accessible or shared with third-parties. The financial industry’s leading institutions and the government sponsored-enterprises (GSEs) have accepted the patented process AccountChek utilizes as the industry advances in the automated age of lending. CIS is a member of the National Consumer Reporting Association, National Association of Professional Background Screeners, Mortgage Bankers Association and local chapters of mortgage professionals and lenders nationwide.

RoundPoint Mortgage Servicing Upgrades Key Consumer Program

RoundPoint Mortgage Servicing Corporation has announced that it has upgraded the customer’s ability to access the office of the Consumer Ombudsman, a program that protects consumer rights by investigating alleged violations, monitoring RoundPoint business activity, and working with business units to correct consumer issues. The program now offers the ability to escalate complaints through the RoundPoint Web site. “The Consumer Ombudsman offers an independent and impartial resolution process and acts as a neutral arbiter of these customer inquiries,” said Dave Worrall, chairman and president of RoundPoint. “Our success is closely linked to the success of every borrower we serve. It is our obligation to offer each consumer the support they need to fulfill their mortgage commitments. Making this program available through our website is one more way we are taking that responsibility very seriously.” The Consumer Ombudsman does not advocate for either the business or the customer but rather ensures a fair process for review of the issue. If the

Consumer Ombudsman determines that a borrower’s rights as a consumer may be at issue and review is warranted, a complete investigation of the file is conducted. Once the review is complete, the Consumer Ombudsman makes a recommendation to RoundPoint on how to resolve the situation. The Consumer Ombudsman’s recommendation and the final resolution of the issue are then communicated to the borrower. The program is an important part of the company’s overall risk mitigation efforts. It supplies trend analysis on complaints received and root cause analysis, and identifies potential process and training improvements. “Information is often the missing element for consumers who have serious issues with their mortgage loan servicer,” said Brad Johnson, chief operating officer for RoundPoint. “Our approach has always been to provide our borrowers with information through as many channels as possible. This program is one more way that we can quickly get to the heart of the issue, provide a method by which the consumer can easily understand their options and solve problems. We’re very proud of this program and the positive effects we expect it to have on our business and our customers’ lives.”

Indecomm-Mortgage U Launches RESPA/TILA Compliance Training Module

Indecomm-Mortgage U has developed a new Integrated Disclosure Training Package that will save mortgage managers hundreds of hours in developing training content and training trainers. The Consumer Financial Protection Agency (CFPB) has promulgated rules integrating loan disclosures under the Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). This was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The rules have now been finalized and are contained in the integrated disclosures rule (the Rule). Integrated disclosure project teams are faced with planning and implementing an overwhelming number of operational changes as mandated by the 1,900-page Rule. Significant operational changes include the need to restructure the process and timing of re-disclosures, expand the final settlement statement review process and add efficiency to accommodate a new waiting period prior to closing. The industry’s ability to effectively manage this change will have a measurable impact on consumers in the form of costs and interest rate lock pressure. The new TILA-RESPA Integrated Disclosure procedures and forms are effective Aug. 1, 2015 with no ability for

Accurate Group, a provider of real estate appraisal, title and compliance services, has announced the launch of its eSign closing solution. Accurate eSig is designed to help mortgage lenders streamline loan closing and improve the borrower’s experience. The solution will enable lenders to provide documentation to borrowers more quickly, in compliance with Consumer Financial Protection Bureau (CFPB) regulations, and allow borrowers to review and sign real estate closing documents from anywhere at any time that is convenient for them. Accurate eSign combines documentation, process flows and secure e-signature technology in an easy-to-use Webbased platform. The solution is compli-

Stonegate Mortgage to Expand Its Non-Agency Product Offerings Stonegate Mortgage Corporation has announced that it will expand its offering of nonagency mortgage products. These new product offerings will be accessible through Stonegate Mortgage’s retail, wholesale and correspondent channels. “We are very pleased to release this series of non-agency mortgage products. In order to remain a leader in the mortgage industry, Stonegate Mortgage will continue to deliver high quality service for customers, and continually expanding our product offering contributes to our efforts to satisfy our customers’ needs,” said Lisa Rogers, executive vice president of loan origination for Stonegate Mortgage Corporation. Stonegate Mortgage’s release of Select ARM and Expanded Fixed Rate products represents a significant expansion of the non-agency product suite. Select ARM products offer 90 percent LTV with no mortgage insurance (MI) up to conforming limits, including high-balance limits in applicable areas. The Expanded Fixed Rate products include loans to $5 million in select areas, 85 percent LTV (No MI) to $2 million, cash out refinance to 75 percent LTV, investment properties to 70 percent, cash out amounts to $1 million, and second homes to 80 percent LTV.

Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

n National Mortgage Professional Magazine n JANUARY 2015

Accurate Group Launches eSign to Streamline Closings

ant with the Uniform Electronic Transaction Act (UETA), the Electronic Signatures in Global and National Commerce Act (E-Sign Act) and standards set by the Mortgage Industry Standards Maintenance Organization (MISMO). “Our goal with Accurate eSign is to improve the borrower experience during closing and help lenders and title companies meet the CFPB requirement to provide accurate, complete documentation to borrowers at least three days before closing,” said Paul Doman, president and CEO of Accurate Group. “By combining secure e-signature technology with a complete documentation package, we are streamlining the closing process for all parties. Borrowers benefit from greater transparency and lenders gain compliance and a detailed record of signed documents stored electronically, complete with borrower consents and signature timestamps.”

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lenders to conduct a live testing phase. Indecomm-Mortgage U provides compliance training by mortgage professionals for mortgage professionals using proven methodologies and processes that have been developed over the last 20 years. Training for the TILA-RESPA rules have merged into the Indecomm-Mortgage U library of mortgage training programs, which help professionals at all levels understand the new compliance rules in the context of existing conventions. “We are especially proud of the work which Indecomm-Mortgage U has done on the TILA-RESPA training program,” said Rajan Nair, CEO, Financial Services, Indecomm Global Services. “It puts us at the forefront of the industry, helping us partner with our customers through yet another evolution of regulations.” Indecomm-Mortgage U’s Integrated Disclosure Training Package for the TILARESPA Integrated Disclosure Rule includes three comprehensive modules which explain the regulations in simple, practical terms. The Microsoft Word documents and PowerPoint presentation provide an overview of the regulation and line by line details of the Loan Estimate and Closing Disclosure forms, reducing the complexity for the operations and sales teams on the front lines. The training package content can be customized by the lender and shared with other professionals in the client’s organization. In addition to the instructor-guided training package, Indecomm–Mortgage U will have the same content available in its eLearning library. eLearning modules complement each of the three elements described above and aide industry partners needing blended learning solutions for the entire organization. Indecomm– Mortgage U’s TILA-RESPA Integrated Disclosures eLearning programs are a demonstration of the power of Indecomm’s Web-based online course authoring platform RapideL. RapideL allows users to create courses in Flash and HTML5 in four easy steps: Setup, Author & Review, Publish and Package. RapideL includes a rich template library and offers features like instant page preview, multiuser authoring, and online review.

CFPB Plans for New Credi

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By Terry W. Clemans From startup not quite four years ago, to almost 1,500 employees now, the Consumer Financial Protection Bureau (CFPB) has been one of the most active regulators in the history of the financial industry. We are all familiar now with the broad jurisdiction they have in the industry and their ability to quickly finalize rules that tackle tough issues in nearly every aspect of the financial spectrum. The rapid regulatory pace they have taken thus far looks to continue in 2015, with the CFPB due to address more tough issues this year, including some that have the potential to have a major impact in the credit reporting and collections space. This agenda was initially made public on Dec. 11, 2014 in Oklahoma City when the CFPB released a report finding that medical debt has a significant impact on consumer credit, hitting the credit reports of 43 million Americans. The CFPB is concerned that the systems in place for incurring, collecting, and reporting medical debt can create difficult challenges for consumers and that medical debts tend to over report debts to have a larger impact on the consumers credit score than the value they offer in determining credit risk. To better address these challenges, the CFPB is announcing that the major consumer reporting agencies will be required to provide regular accuracy reports to the Bureau on how disputes from consumers are being handled and track information providers with high levels of consumer disputes. “It’s hard for consumers to navigate the medical debt maze and come out with a clean credit report on the other side,” said CFPB Director Richard Cordray. “The CFPB is taking action to improve credit report accuracy. Getting medical care should not make your credit report sick.” The CFPB’s collection study used information sources at the credit reporting companies, consumer complaints to the Bureau, and interviews with debt collection agencies, healthcare providers, and observers of healthcare billing and payment processes. Among the findings: l Half of all overdue debt on credit reports is from medical debt: A staggering 52 percent of all debt on credit reports is from medical expenses. When a debt is past due, a collector may report the consumer’s account to a credit reporting agency. On the consumer’s report, this item would appear as an account in collections, resulting in a credit score drop. l One out of five credit reports contains overdue medical debt: Today’s study found that one out of five credit reports contain medical debt in collections. This means that 43 million

Americans have unpaid medical debt adversely affecting their credit report. l 15 million consumers have only medical debt on their credit reports: Seven percent of all consumers have medical debt and no other collection items on their reports. These 15 million consumers tend to be more reliable bill payers than consumers with other types of collections on their credit reports. They are much more likely to be consumers who normally meet their debt obligations. l Average reported medical debt is $579: The average unpaid, non-medical collections item on a credit report is $1,000; the median is $366. Unpaid medical collections are smaller, with an average of $579 and a median of $207. These figures contrast with the much larger amounts that are due on credit cards or student loans that are seriously delinquent. Such accounts average several thousand dollars. These findings by the CFPB back up the reasons National Consumer Reporting Association (NCRA), NAMB— The Association of Mortgage Professionals and many other mortgage industry participants have had for their long time support of the Medical Debt Responsibility Act (MDRA). The MDRA is also an example of how dysfunctional Congress has been as this common sense two page bill simply requires paid medical collection to be removed from the consumers credit file within 45 days. The MDRA costs the federal government nothing, only helps the consumers and overall economy and has been killed in the 111th, 112th and 113th Congressional sessions despite changes in party control while being backed by a very respectable bipartisan industry and consumer coalition who seldom agree. The logic of the MDRA is even further backed now that the new FICO 9.0 credit score and Vantage Score (which is owned by the three national credit bureaus) will not factor paid medical debts into the consumer score, IF that specific score model (neither of which is available for use in mortgage lending currently) is the one used for the consumers loan. Expect collection practices to continue to be one of the most significant rulemaking areas for 2015. Lisa Stifler, an attorney specializing in debt collection at the Center for Responsible Lending recently told American Banker, “Right now, the CFPB is looking very broadly in terms of debt collection by looking at everything from debt buyers and collectors, first- party creditors, and banks colleting for others and themselves.” The biggest impact the collection focus will have on the credit reporting industry is CFPB’s new requirement for the national credit bureaus to track and report to the CFPB about quality of the

it Data Quality Reports and Focus on Medical Collections dray-at-the-medical-debt-collectionhearing l For a link to the video coverage of the CFPB Oklahoma City Field Hearing announcing this report and new requirements, visit www.consumerfinance.gov/blog/live-from-oklahomacity l For the CFPB’s official 53-page report, visit http://files.consumerfinance.gov/f/201412_cfpb_reports_co nsumer-credit-medical-and-non-

medical-collections.pdf l For the CFPB Consumer Advisory about Medical Debts, visit http://files.consumerfinance.gov/f/20 1412_cfpb-7-ways-to-keep-medicaldebt-in-check.pdf Terry W. Clemans is executive director of the National Consumer Reporting Association (NCRA). He may be reached by phone at (630) 539-1525 or e-mail tclemans@ncrainc.org.

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Since collection accounts are some of the most highly disputed and error prone segments of the credit report, and for the first time a single federal agency has regulatory authority over (many of) the original creditors, the collection agencies and the credit reporting industry, the CFPB’s rulemaking coming up in 2015 in this area looks like it could be paradigm shift. In closing, one of the most important political struggles to watch between Congress and the White House over the next two years will be regarding the CFPB. Will the Republican Congress pass legislation that could have a huge impact on the CFPB? That’s likely, and so is a veto from President Obama on major changes to the CFPB, however there is potential for some old fashioned political “horse trading” which could see changes like creating a five-member commission (think almost all other regulators, FTC, SEC, FCC, etc.) or moving the CFPB’s funding from under the protection of the Federal Reserve to the congressional appropriations process. That could easily happen as part of some deal where the Democrats need to obtain concessions from the Republicans on something more important to them than the

CFPB’s single director or the funding autonomy. Additional information about this subject can be found at: l For the CFPB site with a full review, visit www.consumerfinance.gov/newsroom/cfpb-spotlights-concerns-withmedical-debt-collection-and-reporting l For CFPB Directory Cordray’s prepared statement, visit www.consumerfinance.gov/newsroom/preparedremarks-of-cfpb-director-richard-cor-

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data being provided by all types of credit information furnishers to the system. This new reporting requirement was introduced as part of the CFPB’s Dec. 11th collection field hearing. This new report will be a portion of the CFPB’s ongoing examinations of the credit reporting industry. These reports will be required to highlight key risk areas for consumers, including the number of consumer disputes about the data filed with the credit reporting agencies. Some of the other metrics in the accuracy report will include: l Furnishers with the most overall disputes: If a credit reporting company continuously experiences an outsized number of consumer disputes about information from a particular furnisher, the CFPB expects the credit reporting agency to investigate, identify if there is a problem, and take appropriate action. l Industries with the most disputes: The credit reporting agencies will have to list the top industries they are reporting on, the volume of information received from those industries, and the total number of disputes generated by those industries. l Furnishers with particularly high disputes relative to their industry peers: For each industry named, the credit reporting agency must also name the top furnishers with the largest number of consumer disputes.

N A T I O N A L

M O R T G A G E

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

M A G A Z I N E ’ S

economic commentary

A By Dave Hershman efore we look ahead at 2015, we should first take a look back and see what happened in 2014. We started the year with a severe winter and a slowdown within the economic sector. We ended the year on an upswing best exemplified by the recently revised estimate for economic growth in the third quarter. The five percent growth rate was the strongest in over a decade. Though we are not expecting that the number for the last quarter of the year will come in at that level, there is also no evidence of a sharp slowdown in the rate of growth for the last quarter of the year. Employment growth picked up nicely in 2014. Well over two million jobs were cre-

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LOOK

AHEAD

ated last year and the unemployment rate dropped almost one percent to below six percent with December’s numbers still to be released. Inflation stayed tame this year and wage growth did not pick up significantly—thus all was not a bed of roses with regard to the employment sector. On the other hand, the low inflation rate enabled mortgage rates to stay low throughout 2014 and oil prices dropped significantly, especially in the second half of the year. Meanwhile, the growth in the real estate market slowed somewhat in 2014. The pace of real estate sales leveled off and price gains were more moderate that the previous two years. As we have emphasized previously, the adjustments in the real estate sector are mainly related to the drop in distressed sales, which is actually a sign of normalization. Finally, the stock

...

AND

BEHIND

market was volatile but marched upward for most of the year as the bull market continued. This year’s gains of over 10 percent for the S&P Index contributed to a gain of well over seventy percent during the past five years—completing the stock recovery from the financial crisis lows of March of 2009. To illustrate, the Dow closed at a low of 6,547 in March of 2009 and finished 2014 near 18,000 which now represents the fourth longest bull market in history. What does this look back mean? If we could summarize projections for 2015 using one word, that word would be—optimism. And this optimism flows into the real estate markets which lagged the overall economy last year. Here are a few samples of the words used by prognosticators— “The U.S. economic outlook looks brighter, with growth likely to be somewhat above the trend of the past five

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years,” said New York Fed President William Dudley. “Many of the gains that we recently predicted in the realtor.com 2015 Housing Forecast are built on housing growth established in 2014,” said Jonathan Smoke, realtor.com’s chief economist. “The housing market is likely to continue its gradual climb upward next year after a sub-par 2014. We anticipate a fairly strong increase in housing starts in response to stronger employment and some improvement in related household incomes,” said Fannie Mae Chief Economist Doug Duncan. Before we jump on the bandwagon, we must remember that no one can predict the future. As a matter of fact, we had similarly robust predictions about growth in 2014 at the end of 2013. The severe winter of 2013-2014 put a wrench in those predictions. Usually, predictions are based upon what is happening right now. The fact that the U.S. economy grew by five percent in the third quarter and we added over 300,000 jobs in November, gives us optimism for 2015. Our look back gives us the reasons for optimism with regards to 2015. Now we should hope for an absence of intervening variables which might interrupt the strengthening economic recovery in the coming year. It seems strange that we are still talking about an economic recovery since the recession ended close to five years ago. It has been a long road but we finally seem to be on the verge of momentum and a virtuous cycle. Are you listening Mother Nature? Dave Hershman is a top author in the mortgage industry with seven books published. He is also the founder of the OriginationPro Marketing System, and currently the director of branch support for McLean Mortgage. He may be reached by e-mail at dave@hershmangroup.com or visit www.originationpro.com.

National Mortgage Professional Magazine

Presents

Top Mortgage Employers

We polled our readers about their employers based on the following criteria: Corporate culture

Training resources

Speed

Long-term strategy

Industry participation

Marketing support

Day-to-day management

Innovation

Technology

Internal communications

Based the above criteria, we weighted factors that are more important to our readers (i.e. our readers told us that factors like corporate culture was considerably more important to them than speed of company). The resulting responses created the Mortgage Employer Company Score (MECS). We have broken down the results into national and regional categories.

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Compensation

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National Mortgage Professional Magazine is proud to announce its inaugural list of Top Mortgage Employers.

A M E R I C A â&#x20AC;&#x2122; S

T O P

6 0

M O R T G A G E

E M P L O Y E R S

( N A T I O N W I D E )

AllRegs

Midwest Mortgage Capital LLC

American Financial Resources Inc. (AFR)

Mountain West Financial, Inc.

American Neighborhood Mortgage Acceptance Company (Annie Mac)

Movement Mortgage LLC

American Pacific Mortgage Corporation AmeriSave Mortgage Corporation Angel Oak Home Loans LLC Bradford Technologies Caliber Home Loans Inc. Carrington Mortgage Services LLC 36

CHL Mortgage CMG Financial

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Credit Plus, Inc. DocMagic Endeavor America Loan Services Equity Prime Mortgage Equity Resources Inc. FFC Mortgage Corporation First Guaranty Mortgage Corporation Flagstar Bank GSF Mortgage Corp. Hancock Mortgage Partners LLC HomeBridge Financial Services Inc. HomeBridge Wholesale HomeStreet Bank Inlanta Mortgage Inc. JMAC Lending LeaderOne Financial Corporation Maverick Funding Corporation MB Financial Bank Mercury Network

New American Funding NFM Lending Inc. Norcom Mortgage OneTrust Home Loans Paramount Residential Mortgage Group Inc. Parkside Lending LLC PCV Murcor Pinnacle Capital Mortgage Corporation Plaza Home Mortgage Inc. Premier Nationwide Lending Primary Residential Mortgage Inc. Prospect Mortgage Quicken Loans Radian Guaranty RCN Capital Real Estate Mortgage Network (REMN) Rehab Cash Now Residential Home Funding Corporation Reverse Mortgage Solutions StreetLinks Lender Solutions Summit Funding Inc. Supreme Lending TagQuest United Northern Mortgage Bankers Ltd. United Wholesale Mortgage V.I.P. Mortgage Inc. VanDyk Mortgage Corporation

T H E

T O P

2 0

M O R T G A G E

( M I D W E S T

E M P L O Y E R S

U . S . )

1st Equity Funding Group Inc.

Integrity Home Mortgage Corporation

American Fidelity Mortgage Services Inc

Key Mortgage Services Inc.

American Mortgage Service Company

Lake Pacor Home Mortgage

AmeriFirst Financial Corporation

Landmark National Bank

Associated Bank NA

M&M Mortgage LLC

Atlantic Pacific Mortgage Corporation

Manasquan Savings Bank

Bell Mortgage, a Division of Bell State Bank

Mclean Mortgage Corporation

Glendenning Mortgage Corporation

Midwest Mortgage Capital

Huron Valley Financial

Mortgage 1 Inc.

iLoan

Nova Home Loans

T H E

T O P

2 0

M O R T G A G E

( N O R T H E A S T

E M P L O Y E R S

U . S . ) Northeast Financial

A.S.A.P Mortgage Corporation

Northern Bank & Trust Company

Absolute Home Mortgage Corporation

Northpoint Mortgage Inc.

CUSO Home Lending

Oak Mortgage Company LLC

Equity Resources Inc.

Opportunities Credit Union

Fairfield Mortgage Company

Pike Creek Mortgage Services

Family First Funding LLC

Province Mortgage Associates Inc.

FFC Mortgage Corporation

Radius Financial Group Inc.

Hunt Mortgage

Ridgewood Savings Bank

Norcom Mortgage

Village Mortgage Company

T O P

2 0

M O R T G A G E

( N O R T H W E S T

E M P L O Y E R S

U . S . )

Alliance 2020

Mortgage Mapp

Alpine Mortgage Planning

Mortgage Master Service Corporation

Big Valley Mortgage

Mountain West Financial

Bridgeview Mortgage

Peak Mortgage

DBA Big Valley Mortgage

Plaza Loans

Directors Mortgage d/b/a USA Direct Funding

Priority Lending Mortgage Corporation

Evergreen Home Loans

Real Estate Financial Services

First Priority Financial

USA Direct Funding

Graystone Mortgage

Vantage Mortgage Group Inc.

Homestreet Bank

Washington First Mortgage Loan Corporation

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T H E

NationalMortgageProfessional.com

1st Priority Mortgage Inc.

T H E

T O P

2 0

M O R T G A G E

( S O U T H E A S T

George Mason Mortgage LLC

American Security Mortgage Corporation

Grow Financial FCU

Assurance Financial Group LLC

HeritageBank Mortgage

Beach Community Mortgage Services Inc.

LaJoya Area Federal Credit Union

CJ Brown

Mortgage Financial Group Inc.

Coastal Federal Credit Union

Mortgage Investors Group

Essential Mortgage Company

Platinum Financial Funding LLC

EvaBank

Province Mortgage Associates

Fidelity Funding

The Mortgage Firm Inc.

First Mortgage Group

Watson Mortgage Corporation

T O P

2 0

M O R T G A G E

( S O U T H W E S T

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JANUARY 2015 n National Mortgage Professional Magazine n

U . S . )

American Mortgage Service Company

T H E

E M P L O Y E R S

U . S . )

Alderus Funding & Investments Inc.

Harvesters Federal Credit Union

Alpine Mortgage Planning

Lund Mortgage Team Inc.

American Capital Home Loans

Mountain West Financial Inc.

AmeriFirst Financial Inc.

Noble Home Loans

Catalyst Lending Inc.

PB Financial Group

Elite Escrow Services of San Diego

Peoples Mortgage Company

Ethos Lending

Resource Lenders Inc.

First Capital Financial

Veritas Funding

Graystone Mortgage

Western Pioneer Financial

Guardian Mortgage Company Inc.

Zeus Mortgage

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1.800.649.1362 I www.DocMagic.com

heard street ON THE

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

DocMagic Announces the Acquisition of Doc-Tech

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DocMagic Inc. has announced that it has acquired the assets of Doc-Tech Corporation, d/b/a Document Express, a boutique document preparation company. The acquisition comes on the heels of DocMagic completing the purchase of award-winning eSignSystems in October. As part of the acquisition, DocMagic will bring on the entire team of Doc-Tech Corp, including co-founder and Doc-Tech President Lori Johnson and Doc-Tech EVP of Sales Michael Chaney. In addition, DocMagic gains DocTech’s customer base of lenders, which it will continue to service and support using DocTech’s service-oriented staff located at its corporate office in Palatine, Ill. “We are very excited about this particular deal,” said Dominic Iannitti, president and CEO of DocMagic. “I can’t say enough good things about the hands-on service-focused model that Doc-Tech provides. This acquisition merges the best of DocMagic’s enterprise-level methodologies with DocTech’s wildly successful boutique-style customer service model. Our synergies are powerful, and when combined, are nothing short of a home run for both entities. Lori and her team have done an extraordinary job of achieving the highest level of customer satisfaction amongst their varied client base, which is a core value of DocMagic.” The acquisition adds to DocMagic’s already robust suite of electronic products and services with the addition of the Doc-Tech’s Elite Docs Series. DocTech’s customers will continue to enjoy the Elite Docs Series experience, and the company officials report that it will not require any change to their user experience. “We couldn’t have asked for a better home for our clients than DocMagic,” said Johnson, president of Doc-Tech.

“Our customers will now have access to an enterprise-class infrastructure, significant expert resources to draw upon, advanced compliance technology, fail safe security, and innovative first-tomarket solutions. There isn’t a hotter, more effective doc prep company in the industry than DocMagic, and we are elated to bring our valued clients and strategic partners into the DocMagic family.” DocMagic will retain Doc-Tech’s corporate headquarters based in Palatine, Ill., establishing a strong presence that is close to the East Coast. Jonson shall serve as DocMagic’s director of client services and Chaney will assume the role of senior sales executive. DocMagic’s strategic counsel, Silvia San Nicolas Esq., handled the transaction and terms of the deal were not disclosed.

Open Mortgage Set to Acquire Reverse Division of 360 Mortgage

Austin, Texas-based Open Mortgage has announced that it will acquire the reverse origination arm formerly under 360 Mortgage Group. Sources within 360 Mortgage Group confirmed staff were notified last week that the company would be winding down its reverse mortgage originations, after entering the business earlier this year. 360 Mortgage Group, also based in Austin, will continue to acquire and service reverse mortgage loan pools. Around 20 originators based across the country will move from 360 Mortgage Group to Open Mortgage, with licensing currently in process. ”360 Mortgage Group has made the decision to allow the acquisition of its origination business for reverse mortgages in order to increase its focus on

wholesale, correspondent, and the servicing of both forward and reverse mortgages,” said Mark Greco, founder and CEO of 360 Mortgage Group. “360 Mortgage Group’s goal remains the same; to gain market share in the multiple channels of origination as well as to continue building our servicing platform.”

Genworth U.S. Mortgage Insurance Partners With Axacore

Genworth U.S. Mortgage Insurance has become the first private mortgage insurer to partner with Axacore, a leading document management platform, in a deal creating synergies among both firms’ mutual customer base. Lenders who use the Axacore platform directly or through one of Axacore’s OEM partners now have access to seamless one-click ordering of Genworth non-delegated mortgage insurance from within the Axacore system. “Non-delegated mortgage insurance, which requires the lender to submit loan documentation so a Genworth underwriter can make the risk decision, is gaining in popularity,” said Geriel Thornburg May, Genworth’s MI director of customer experience. “Enabling mutual customers of Axacore and Genworth to easily order mortgage insurance from one place with a single click is a valuable tool that creates more efficiencies for a smoother process.” “We’re proud to be the first to market with the Axacore partnership,” Thornburg-May said. “Speed to close is a critical component of the mortgage insurance process and this partnership allows us to provide our lenders with the most optimal service, which allows them to better serve their buyers.”

AmeriSave Mortgage Announces Purchase of Mortgage Division From CertusBank

AmeriSave Mortgage Corporation has completed its lift-out of mortgage operations from CertusBank. This agreement includes the purchase of certain assets and operations in North Carolina, South Carolina and Georgia. The move will allow AmeriSave to expand its footprint into traditional retail lending. “When we announced this deal in September, we knew we had a good fit,” said Ed Abufaris, president of AmeriSave. “Now that we have started integrating CertusBank’s mortgage operations with ours, we realize our combined business model is even better than we originally expected.” AmeriSave has also announced the hiring of Gary Suess as executive vice president of sales. “I am excited to join the AmeriSave team and to help lead the diversification of its origination channels, while building on a rich history of success,” said Suess, formerly executive vice president and head of mortgage banking at CertusBank. “We see this as a great combination of team members and business relationships. The CertusBank mortgage group provides a traditional retail channel to complement AmeriSave’s leading consumer direct and third-party origination channels.”

Academy Mortgage Acquires Republic Mortgage Home Loans

Sandy, Utah-based Academy Mortgage Corporation has announced the acquisition of Salt Lake City-based Republic

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also were drawn from just one small geographic region in the U.S. and may not generalize to other regions.”

nmp news flash continued from page 16

Your turn NCUA is pursuing claims, Wells Fargo neglected its statutory and contractual obligations to certificate holders, including the five corporate credit unions,” NCUA Board Chairman Debbie Matz said. “This litigation is intended to hold Wells Fargo accountable for losses caused by that neglect.” Five corporate credit unions—U.S Central, WesCorp, Members United, Southwest and Constitution—purchased approximately $2.4 billion in RMBS issued from the trusts between 2004 and 2007. Those securities were faulty and lost substantial value, contributing to the failure of all five corporates. NCUA’s complaint states the value of the securities depended on the quality of the pooled mortgage loans the trusts contained, and the bank, as trustee, had contractual and statutory duties to protect the interests of certificate holders. The complaint states that, despite knowing about defects in the mortgage loans, Wells Fargo failed to provide required notices to certificate holders and other parties and failed to take timely action to force the repurchase, substitution, or cure of defective mortgage loans or otherwise preserve trust remedies.

ments where depression was the secondary and not the primary focus of the treatment. “There are, of course, a few limitations to the study,” Dr. Grohol stated. “Examining insurance claims data may give us a biased sample, since people who never seek out treatment for depression aren’t included in the dataset. This is a potentially huge issue, since previous research has shown that most people don’t seek treatment for depression. The data

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

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www.mortgagenewsnetwork.com

Study Identifies Real Estate as a Depressing Occupation

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Real estate professionals that find their work to be depressed may find some consolation in a new study that determined their industry is, indeed, a very depressing place to work. According to a study published in the medical journal Social Psychiatry and Psychiatric Epidemiology, real estate-related professionals have the second highest rate of occupational depression, topped only by public transit system workers. Social workers came in third place. The study identified depression-inducing work was mostly performed by those who “require frequent or difficult interactions with the public of clients, and have high levels of stress and low levels of physical activity.” At the far side of the spectrum, jobs that brought about the least amount of depression involved duties that required physical activity and/or outdoors labor. However, Dr. John Grohol, founder and CEO of the Psych Central blog, pointed out that the study might be skewered based on where the research took place. The researchers studied the insurance claims data covering more than 214,000 people in western Pennsylvania (including Pittsburgh) during the years 20022005, and it covered a broader definition of depression to include bipolar disorder diagnoses and medical treat-

LYKKEN ON

leadership

Five Powerful Benefits to Becoming a Transparent Leader concept that I feel to be increasingly more important in our line of work. However unfair it may be, the harsh economic client of the past several years has been attributed in a large extent to the negligent practices of our industry. The general public

By David Lykken s I think about leadership in the mortgage industry going into the new year, I cannot stop thinking about one

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seems to possess a lack of trust in mortgage organizations, and I think those of us who are leaders in the business need to do what we can do remedy that perception. And rebuilding that trust, I believe, begins with transparency. Transparency can be a scary word—especially in the financial sector. We’re wary about revealing certain information and, indeed, we should be! Certain data is confidential, and we should have the security in place to make sure it remains so. When I say “transparency,” I’m not talking about giving away secrets that aren’t ours to give away. Rather, I’m talking about something else entirely. I’m talking about transparency of purpose. I’m talking about being open and honest about what you’re doing and why you’re doing it. I’m talking about being candid with your employees, with your investors, with your customers, and with the general public. That’s what I mean by transparency. Being transparent isn’t just about saying what you mean and meaning what you say. It’s a mindset, a philosophy, a whole new way of looking at the world. When you are transparent with everything you say and do, you send the signal to yourself and others that you are doing the best you can in the best way you know how. And when you can be forthright about your intentions and your actions, people will follow you. Why? Because being transparent changes you in a number of ways … First, and it almost goes without saying, being transparent makes you more trustworthy. When you are open and honest about your strategy and how you plan execute it, you empower people to have faith in you. Your

employees can get behind you, because they will know that you aren’t going to go back on your word and do something other than what you said you would do. Your customers and potential customers will be much more willing to do business with you, because they won’t believe you are trying to cheat them in any way. Transparency is the very foundational of trust. If you are hiding information from someone, how can you expect them to trust you? Being transparent is the first step to getting people to believe in you. And, if you are a leader, that is something you most desperately need. Similarly to becoming more trustworthy, adopting a transparent mindset makes you more dependable. Yes, again, people can trust you do honor your word when you are transparent. But, it’s more than that. Transparency provides an internal sense of accountability. If you are keeping secrets from people, there is a constant temptation to use the information they don’t have against them for your own benefit. Being an open book keeps you honest. If you clearly state your intentions, plans, and beliefs, the pressure is always on to live up to them. When you make a commitment, everyone knows about it; so, you can’t simply decide to give up when it’s convenient. You get the job done, because there is a sense of social pressure pushing you to do it. All of the great leaders I know have a strong sense of integrity. They have a sturdy moral compass and are honest by nature. However, to get ahead in business, even the greatest among us has been tempted to hide information in order to make a deal or cover up our mistakes. Feeling the tension between the desire to be honest and

Transparency will only make you lose business if you are doing something you shouldn’t have been doing in the first place. Will transparency make you vulnerable? Yes, but it will also make you better. And, while transparency may temporarily make you feel inferior, it will provide the rich soil in which you can learn and grow all the more in the long run. As people becoming increasingly more suspicious of our industry, those of us who are leaders cannot afford not to adopt a transparent mindset. It’s no longer a luxury; it’s a necessity. Yes, I believe that being transparent will change your life, your business, your organization, and everything you

touch. But in a broader and more influential sense, it will also change our industry. Transparency is the future of leadership in the mortgage industry. Will you be there to see it? David Lykken is 40-year mortgage industry veteran who has been an owner operator in three mortgage banking companies and a software company. As a former business owner/operator, today David loves helping C-Level executives and business owners achieve extraordinary results via consulting, coaching and communications, with the objective of eliminating corporate dysfunction, establishing and communicating a

clear corporate strategy while focusing on process improvement and operational efficiencies resulting in increased profitability. David has been a regular contributor on CNBC and Fox Business News and currently hosts a successful weekly radio program, “Lykken on Lending,” that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. He produces a daily one-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper Web sites across America. He may be reached by phone at (512) 5012810 or by e-mail at dlykken@mbsteam.com.

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the pressure to succeed can be a difficult ordeal. When you adopt a transparent mindset as a leader, you can operate with greater confidence because you won’t have to feel embarrassed or uncomfortable about hiding anything. Being transparent liberates you to believe in yourself, your organizations, and your strategy for success. Being confident is all about being about to trust yourself. And, just as transparency makes you more trustworthy to others, it will also make you more confident in your own skin. Now, this one may not be so intuitive, but I also believe that becoming a more transparent leader will make you smarter. How exactly does that happen? Well, let me explain. When you are open and honest about yourself, you are making yourself intellectually vulnerable—you are revealing what you don’t know as much as you are what you do know. Many people, when they don’t quite grasp a concept, will pretend that they understand it just to save face. Being a transparent leader denies you this safety net. So, why is that a good thing? Because it is only when you have the willingness to admit your ignorance that you can learn something new. Being transparent means being open to the possibility that you are wrong; it means revealing to others that your knowledge is incomplete. And, when that happens, you can fill in the gaps. You broaden your knowledge, because you are willing to reveal that you still have more to learn. Finally, being a transparent leader makes you a more relatable leader. When you are open and honest about your dealings, you create an atmosphere in which your relationships with others can thrive. Your employees will feel more comfortable opening up to you, because they’ll trust you with what they say. They won’t believe that you are hiding things from them, so they won’t feel compelled to hide things from you. And it’s the same for your customers and partners. In negotiations, they won’t feel like they need to hide information to gain a competitive edge. When your honest with them, they’ll be honest with you. Transparent leadership tears down the walls that make relationships shallow and unstable, and it build bridges to allow truly meaningful relationships to grow. In his book Get Naked, management consult Patrick Lencioni advises leaders on how adopting an attitude of transparency can help them run their businesses more successfully. But first, he suggests, we have to get passed our fears—the fear of losing business, the fear of being vulnerable, and the fear of feeling inferior. These worries often hold us back from becoming transparent and make us more guarded in the way we interact with customers, employees, and society. Is it fear that’s holding you back?

Why Your Business Needs Quality Online Reviews By Rene Rodriguez The results of the Local Consumer Review Survey are in, and as we predicted, the trend is continuing. Online reviews are here to stay and are gaining power. Just how important are online reviews to consumers? Survey says: EXTREMELY! Let’s take a look at some of the most interesting results from the survey to learn why consumers are relying on online reviews more, and why it’s critical that your business has an expansive arsenal of positive reviews. If your business relies on customers who value quality over price, this first bit of data should make you happy. Seventy-three percent of consumers reported that positive customer reviews make them more likely to use a local business (up from 58 percent in 2012) compared to just 24 percent who make their selection based on other factors like location and price (down from 28 percent). Even more encouraging for businesses, 79 percent of consumers trust online reviews just as much as personal recommendations—provided they look authentic, of course. A Bazaarvoice Survey published survey results of its own, citing that 51 percent of people actually found user-generated content (an online review) more important than the opinions of their friends and family. That’s great news, because it means you have more control over how your business is represented. If you choose to take an active role in generating online reviews, that is. The survey’s findings also revealed that 85 percent of consumers regularly or occasionally use online reviews to determine which local business to use. That means almost everyone is searching you out when they want to do business with you. 44

Two simple tips to maximize reviews

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You most likely close business on the phone, in person, with pen and paper, behind a desk, and even in coffee shops. If you do, you should be collecting online reviews! 1. Fit it to your sales process: Search Engine Land cites Customer Lobby CEO Ted Paff saying, “Comment card reviews solicited at the time of service can see completion rates of 80 to 90 percent.” It makes sense. The point of sale is the height of customer euphoria. Take advantage of these feelings by verbally asking for a review. The true professionals carry their iPads with them at all times, just waiting for those moments to arise. Include it on the back of every document you give to the client. Staple it to their paperwork. 2. Proactively share your reviews BEFORE they search for you: As much as we all want people to find us when they need us, it just doesn’t always happen that way. Be proactive in how you share your positive reviews. Make them available to read on your Web site, in your physical lobby while they wait for you, and attached as a link to your e-mail signature. This way, you direct them to what you want them to see versus them having to seek you out. And who knows what they’ll find then besides your competitors. For more tips on maximizing your online reviews, please visit http://Blog.BetterLoanOfficers.com/TIPS. Rene Rodriguez is founder and chief executive officer of BetterLoanOfficers.com, a powerful and easy-to-use online loan officer review management system. Loan officers can collect, manage and promote their reviews in order to build trust, secure more referral relationships and close more deals. Rene is also CEO of Volentum, an enterprise education and consulting company. He has been named to National Mortgage Professional Magazine’s “40 Under 40 Most Influential Mortgage Professionals” for five consecutive years. He is a renowned behavioral and organizational change expert, leadership coach, world class sales trainer & dynamic keynote speaker who has shared the stage with Tony Robins, Lou Holtz, Ben Stein, Roy Firestone and Jeffery Gitomer.

SPONSORED EDITORIAL

heard on the street continued from page 40

Mortgage Home Loans. Republic Mortgage was founded in 1983 on the core values of integrity, service, passion and excellence. Republic Mortgage is focused on purchase (vs. refinance) business and on the professional and personal development of its mortgage originators, employees and referral partners. The company is also actively involved in giving back to its communities and donates a portion of each closing to local charities. Republic Mortgage currently operates 44 branches in 12 states with 350 employees. “Republic Mortgage aligns well with the service-oriented and people-centric culture at Academy,” said Republic Mortgage President and CEO Scott Leishman. “We are confident that this partnership will greatly benefit our team members by providing them with additional resources and volume to enhance their capabilities moving forward.” The acquisition of Republic Mortgage brings an additional element of scale, scope and talent to Academy, which will be instrumental in helping the organization achieve its corporate vision and mission. “By joining forces with Republic Mortgage, we will be able to accelerate our opportunities for growth and, most importantly, our opportunities for each individual to push forward our vision to inspire hope, deliver dreams, and build prosperity,” said Academy President Adam Kessler.

Inlanta Mortgage Opens New Florida Branch in Sarasota Inlanta Mortgage Inc. has announced its expansion into the Florida market with the addition of a new branch in Sarasota, Fla. The Stettler Group, one of the nation’s leading residential mortgage teams with more than 6,500 mortgage closings for over $1.3 billion, has left Wells Fargo Home Mortgage to become part of the Inlanta Mortgage team. The Stettler Group of Inlanta Mortgage is managed by veteran loan originator and manager Rob Stettler. “The fact that Inlanta has become a purchase market leader makes this a great fit for our team,” said Stettler. “The mortgage process does not have to be difficult because life’s already complicated enough.” “We are fortunate to welcome and partner with the Stettler Group,” said Inlanta Mortgage Vice President of Business Development Joe Ramis. “Rob’s team is known for their integrity and ability to get the deal done. They are an ideal match for Inlanta Mortgage we look forward to helping them expand their purchase business.”

Aquiline Capital Announces Majority Investment in LenderLive

Aquiline Capital Partners LLC, a New York-based private equity firm investing in financial services, has announced that it has signed a definitive agreement to become the majority investor in LenderLive Network Inc., a Denverbased, end-to-end mortgage services provider. Founded in 1999, LenderLive serves more than 300 financial institutions including a number of the world’s largest commercial/investment banks and top-tier mortgage lenders. The company’s suite of offerings includes mortgage origination, subservicing, document solutions, due diligence, and title and closing services. The transaction, the terms of which were not disclosed, is subject to customary closing conditions. “Aquiline has financial services operating experience and a reputation for building value within their portfolio companies,” said Rick Seehausen, chief executive officer of LenderLive. “Aquiline will provide the strategic guidance and resources to accelerate our growth and support the continued development of the technology and solutions that provide our clients with competitive and compliance advantages in the market.” “Increased market complexity and heightened regulation are driving demand for compliant, cost-effective residential mortgage solutions,” said Jeff Greenberg, chief executive officer of Aquiline. “We are excited to be partnering with Rick and his team to support LenderLive’s core business and strategic growth initiatives in the mortgage services industry.”

Guild Mortgage Opens New Operations Center in Reno to Serve Southwest U.S. Guild Mortgage Company has announced the opening of a new operations center in Reno, Nev. Guild’s new center will process, underwrite and fund loans for Guild’s Nevada branches in the Southwest region, including the Green Valley, Las Vegas, Reno and Lake Tahoe branches. Guild, based in San Diego, Calif., now has more than 250 branch and satellite offices in 23 states, with recent growth occurring throughout the Southwest and Southeast. Andy Stewart, Southwest regional manager, said Guild recognized the continued on page 67

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Just Ask

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Eric Weinstein & Laura Burke

nowledge is power. Power translates to success, whether it is dollars in your pocket, stronger leadership, increased bottom lines or peace of mind, we are here for you. This month, we are introducing a new column for questions relating to starting a business, managing a business, training, networking, tax-related issues, corporate security policy, fraud alerts and compliance. All answers are for informational purpose only, and are not intended to practice law, or are meant to provide tax advice or tax opinions. After reviewing our information, we both recommend seeking legal counsel or the advice of a tax professional. Please e-mail us at

JustAskEricandLaura@gmail.com to voice any questions or problems. We are here for you!

Rosemary from Amityville, N.Y. asks … I have bad credit, eat dirt and Satan lives in my closet. Can I come and work for you? Eric’s reply to Rosemary … No … I work for a broker. Under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) enacted on July 30, 2008, statelicensed MLOs must pass a written qualified test, complete pre-licensure education courses, and take annual continuing education courses. The SAFE Act

also requires all MLOs to submit fingerprints to the Nationwide Mortgage Licensing System (NMLS) for submission to the FBI for a criminal background check; and state-licensed mortgage loan originators (MLOs) to provide authorization for NMLS to obtain an independent credit report. With your bad credit, I am afraid you would not qualify. You may wish to apply as a loan officer with a federally regulated bank. They have no such restrictions. These are the only criteria: Individual residential mortgage loan originators employed by Agency-regulated institutions must: l Register with the Registry and main-

tain their registration. l Obtain a unique identifier through the Registry that will remain with that originator, regardless of employment changes. Mortgage loan originators and their employing institutions must provide MLO unique identifiers to consumers. Agency-regulated institutions must: l Require their employees who are mortgage loan originators to comply with these requirements. l Adopt and follow written policies and procedures to assure compliance with the registration requirements. Best wishes. You will fit right in there.

k Eric & Laura Lauraâ&#x20AC;&#x2122;s reply to Rosemary â&#x20AC;Ś As usual I disagree with Eric. Most employees who work for a bank are fingerprinted, regardless of their title, and yes, it is true they do not have to pass the state licensing requirements but thatâ&#x20AC;&#x2122;s because the bank is taking responsibility for their actions. If a loan officer from a bank makes a mistake, who is ultimately responsible? The bank. The bank will have to resolve the issue, they most likely will let the loan officer go, who has a registered with the registry system, so probably difficult for loan officer to find another banking position. In the case of the MLO working for a broker or banker, yes they do need to follow the steps laid out by Eric, but rightfully so. If youâ&#x20AC;&#x2122;re a hair dresser, a nurse, a doctor, most professions require ethical standards, licensing and continuing education. The continuing education is another topic. I do feel the CE in mortgage banking needs to be revised. I have taken the same courses year after year â&#x20AC;Ś they are boring. But as an MLO, we all must take our CE and pay our fees to maintain our license. As for the dirt, the old wives tale is we all must eat a pound of dirt before die, so hereâ&#x20AC;&#x2122;s hoping you are below the one-pound mark!

chimpanzee if gets me more business. I think many business professionals feel the same way. The same with race. To me, everybody is green like the color of money. Of course, my wife will not let me work with the really sexy green ones, though â&#x20AC;Ś Lauraâ&#x20AC;&#x2122;s reply to Kelly M. â&#x20AC;Ś I cannot say whether your gender made a difference in you getting the loan or now, but I can say there is a

distinct difference in selling between the genders. Men typically do not build relationships; they are after the transaction, where women often build relationships first. Is this good or bad? I am going to say neither, just different techniques. For example Ericâ&#x20AC;&#x2122;s first thoughts were sex and humor, which may or may not be a good combination. My first instinct is to answer your question sincerely and often a solution.

Single women buy homes twice as often as single men, as they are welleducated with good incomes. Yet statistically it is said they are less likely to be approved. Why is that? A recent report published by the National Association of Realtors (NAR) using numbers gathered by the real estate brokerage Redfin, found that single women have been taking

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855.743.7431

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I recently went up against another loan officer for a large, high end deal, and lost. I am wondering if my being a female has any bearing as to why I may not have landed the deal. Do you still think the good olâ&#x20AC;&#x2122; boys club still exists, especially with real estate agents, or on a high-end deal? I also have a follow-up question: What have you found the best tactic or plan to get more business from real estate agents? Ericâ&#x20AC;&#x2122;s reply to Kelly M. â&#x20AC;Ś I was once training a young pretty woman as a loan officer. She thought by dressing provocatively she would get more business. The truth is, it has the exact opposite effect. With married couples, the woman half will immediately talk you down so their husbands donâ&#x20AC;&#x2122;t get any ideas. Male real estate agents will readily talk you up, but will assume any beautiful woman has to have no brains. Itâ&#x20AC;&#x2122;s a cultural bias fomented by the entertainment industry. The best tactic for an attractive woman is to dress and act in a business-like manner. It is okay to be pretty, but not sensual. In my personal opinion, no there is no old boys network, I will work with a

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Legal Updates: January 2015

ABA Takes New Volley at Farm Credit System By Phil Hall

By Melanie A. Feliciano Esq. No changes to 2015 conventional loan limits The Federal Housing Finance Agency (FHFA) has announced that, except for 46 counties in which high-cost area loan limits have increased, the 2015 maximum conforming loan limits for first-lien and second-lien loans will remain unchanged from the maximum conforming loan limits for 2014. Note that loan limits apply to the original loan amount of the mortgage loan, not to its balance at the time of purchase by Fannie Mae, and the loan origination date is the date of the note.

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2015 FHA and VA loan limits The Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) have released their maximum loan limits for 2015. The FHA maximum loan limits are applicable to FHA Title II Forward Mortgages and Home Equity Conversion Mortgages (HECMs) insurance programs under the National Housing Act, except for streamline refinance transactions without an appraisal, and are effective for case numbers assigned on or after Jan. 1, 2015 through Dec. 31, 2015. VA Circular 26-14-39 announces its 2015 County Loan Limits. Circular 26-14-39 clarifies that there is no maximum VA home loan in that lenders may originate loans in excess of the County Loan Limit. However, the VA’s guaranty will be limited to 25 percent of the County Loan Limit. The Circular also announces that the County Loan Limits do not apply to Interest Rate Reduction Refinancing Loans (IRRRLs). It also addresses how loan applications in process, whereby the purchase and sales agreement has been ratified by all parties, and the Uniform Residential Loan Application (URLA) has been signed by both the lender and borrower, will be handled. Please refer to VA Circular 26-14-39 for more details. Vermont declared rate remains unchanged No later than Dec. 15 of each year, the Vermont Commissioner of Taxes: Establishes the rate ("Declared Rate") pursuant to Vt. Stat. Ann. tit. 32, § 3108(a): For 2015, the Declared Rate used by the Vermont's High Rate, High Point law (the "Act") will remain unchanged at 3.6 percent. The Act provides, among other things, that if the interest rate being charged on the loan exceeds the Declared Rate by more than three percent, then the loan is a high rate loan. Melanie A. Feliciano Esq. is DocMagic Inc.’s chief legal officer and currently serves as editor-in-chief of DocMagic’s electronic compliance newsletter, The Compliance Wizard. She received her JD from the Georgetown University Law Center, and is licensed in California and Texas. She may be reached by phone at (800) 649-1362 or e-mail melanie@docmagic.com.

SPONSORED EDITORIAL

When Congress established the Farm Credit System in 1916 as a governmentsponsored enterprise (GSE), it was intended to help small-scale farmers and ranchers that were having difficulty obtaining financing for their rural operations. Nearly a century later, however, things are a little bit different. The Farm Credit System is unique because it is the only GSE that also serves as a lender. The system is a network of borrower-owned lenders and specialized service organizations that are supposed to serve communities of 2,500 and less. But demographic shifts from rural communities to urban and suburban settings resulted in this GSE aiming its financial activities elsewhere—much to the chagrin of the commercial bankers that the Farm Credit System works directly against. “The Farm Credit System has gone far outside of agricultural lending,” said Ed Elfmann, vice president of congressional relations for the American Bankers Association (ABA). “What put them over the top was the recent $725 million loan to Verizon so the company could do a corporate buyout of Vodafone. In their eyes, Verizon is similar to rural telephone cooperatives.” Elfmann noted that the Verizon loan was not an aberration, but part of a trend in which the Farm Credit System began to show increased interested in deep-pocketed individuals and corporations. Most of these transactions attracted little attention, but in the past few years a pair of Farm Credit loans to deep-pocketed individuals—financing for the Kluge Estate Winery and Vineyard near Charlottesville, Va., founded by the exwife of the late billionaire media magnate John Kluge, and a 55-acre equestrian facility and guest house in South Dakota reportedly owned by a Hollywood TV producer—generated headlines and headaches for the GSE when both properties wound up in foreclosure auctions. Last year, CoBank, one of the institutions within the Farm Credit System, provided a $350 million “credit agreement” with Frontier Communications Corporation to partially finance the company’s $2 billion acquisition of the Connecticut wireline business owned and operated by AT&T. “This is corporate lending and is not related to agriculture,” stated Elfmann. For many years, the ABA has seen the Farm Credit System’s lending as a form of encroachment, and it has worked to prevent the GSE from using the legislative process for expanding its mandate—most notably in 2007, when it spearheaded the effort the halted the Horizons proposals that would have furthered the GSE’s non-

farm lending. The trade group recently started a new campaign called Reform Farm Credit that is designed to use social media and grassroots outreach to curtail the GSE’s deviation from its mission. “We are trying to bring equity between ourselves and the Farm Credit System,” said Elfmann. “We want to make sure they stay in their sandbox.” Indeed, the playing field between the Farm Credit System’s institutions and the banks and thrifts serving rural communities is anything but equal. Elfmann notes that banks and thrifts are subject to the compliance burdens of federal legislation including the Community Reinvestment Act and the Dodd-Frank Act, while the Farm Credit System institutions are not. Nor are the Farm Credit System institutions subject to oversight by the Consumer Financial Protection Bureau—instead, another regulatory agency, the Farm Credit Administration, exists to keep an eye on these lenders. “A lot of the Farm Credit institutions are not even required to supply Home Mortgage Disclosure Act information,” Elfmann said. “But Farm Credit is a bank—it has retail offices and loan officers that drive out to the farmers.” Furthermore, Farm Credit System lenders are not concerned about loan limits. “Their lenders’ limits increased last year from $750 million to $1 billion for an individual,” Elfmann observed. “They can do this as long as the property is in a location under 2,500 in population.” Elfmann also expressed concern that the Farm Credit System is using creative language to re-define what constitutes a rural area. “If you have a small swamp in your backyard, they will call it a hunting ground and you can qualify for a loan from them,” he continued. “In Wisconsin, there are billboards telling people they can get financing for new hunting grounds with Farm Credit.” ABA is using Facebook and Twitter to raise awareness of its Reform Farm Credit endeavor, and Elfmann is encouraged that the new 114th Congress will be interested in paying more attention to this issue. “I was at the swearing in on the Hill and I heard from quite a few people,” Elfmann reported, adding that shifting demographics in Congress—there are now only 185 rural-area representatives in the House—may enable a renewed interest in how the Farm Credit System operates. “Agriculture in D.C. is kind of a small community, and it will be interesting to get this outside of that community.” Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.

just ask eric & laura continued from page 47

crowd and pretend you are talking just to them. Ignore everyone else. Do not speak in a monotone voice, raise the pitch and volume of your voice, stressing different parts of your speech. Use logic and emotion to support your position. l Like everything else in the world to master a skill, you must practice. If you think this is something you might have to do on a regular basis, join Toastmasters (www.toastmasters.org). This is an organization specifically designed to help people to learn the skills of oration.

Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. He may be reached by phone at (703) 505-8692 or e-mail eweinstein4u@gmail.com. Laura Burke is an author and trainer with 20-plus years of experience in the mortgage arena. She may be reached by e-mail at lauralynnburke@gmail.com.

Eric & Laura welcome your questions, please send your inquiries to JustAskEricandLaura@gmail.com.

calendar of events N A T I O N A L

M O R T G A G E

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

see page 66 49

www.LykkenOnLending.com

n National Mortgage Professional Magazine n JANUARY 2015

Laura’s reply to Tim M. … Wikipedia calls it “Glossophobia” or speech anxiety is the fear of public speaking. People who suffer from glossophobia tend to freeze in front of any audience, even a couple of people. They find their mouth dries up, their voice is weak and their body starts shaking. They may even sweat, go red and feel their heart thumping rapidly (Glossophobia.com). It is also the second fear by many only preceded by death; some will argue that is the third fear held by many second only to fear of snakes. Whether it is second or third it is a real fear that many people feel. Unfortunately, it is also a fear that must be overcome in many businesses, especially in sales and marketing positions, as well as most top level executive positions. Start small by presenting to small groups, at your church, at a school, at a community event, as you become more comfortable you can ease into large groups. Jumping into a large group is a difficult task, but one that can by mastered with some planning and preparation. There are different types of speaking, first you have one that is planned, prepared and about a topic you are familiar with, this is the easiest to master. The more difficult one is extemporaneous speaking, where you don’t know what the topic might Tim M. from be and you have to ad lib a talk. Alexandria, Va. asks … My boss is making me give a presen- Again if it is relative to topics you are tation to 100 real estate agents at a familiar with it is easier, than a topic conference. I am scared to death of you may not be as familiar with. Tony Robbins once said the mothpublic speaking. Help! er to all success is repetition. I once knew how many hours of practice to Eric’s reply to Tim M. … As a former CEO, I too had to over- a 30-minute speech was necessary. come my fears of public speaking. If Most seminars should be 30- to 60you plan on becoming rich and minutes long at one time. A slide presentation should have a minifamous, that is just part of the job. mum of 30 seconds per slide. Fifteen Here are some quick tips: l Learn your speech really well, but pages double spaced is about a 30do not memorize it. Write down minute presentation. Another organization you may keywords on an index card or a sheet of paper to practice it. If want to join is the National Speakers you can, try to avoid notes on Association (www.nsaspeaker.org). stage, it reduces your sincerity They also have local chapters in most and appeal to the audience. Pick states that you can join. I was a memout two or three people in the ber of this organization for many

Disclaimer: All answers are for informational purpose only, and are not

intended to practice law, or provide tax advice or tax opinions. After reviewing our information we recommend seeking legal counsel or the advice of a tax professional.

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the homebuying business by storm. According to the report, the number of 45- to 54-year-old single female homeowners soared 120 percent from 1982-2012, the latest numbers available. Some of the most successful women are found in Virginia … uh-oh Eric!? To answer your question, if you did all you could do to get the loan, let it go. Keep it as a learning experience, and remember what you feel you did right, and think of what you may change the next time in a similar situation. Be true to yourself, don’t dress inappropriately, be smart, let your candle shine. One big deal can often result in more headaches than four normal-sized deals. If your competition got one deal, and you get two, three or four to his one, you will be ahead. Think about the referral tree you will build, if one person refers you to two people, you could have three times as many referrals, and those three will continue to multiply. Now, let’s talk about getting your foot in the door of new real estate agents. All too often, the real estate agent wants to test you and see what you can do. You can switch the process, and do a role reversal. You can talk to 10 real estate agents and say you are looking for three agents that you will choose to be a part of your new 2015 team. You will offer incredible service, new products, status follow-up and reward points to each of the agents. You can also go on to offer special live seminars for their potential clients, on the benefits of homeownership vs. renting, the tax benefits of homeownership, special loans for veterans, or becoming an investor. All you ask in return is loyalty and referrals. Now some will be nay-sayers and say, “No, but if you keep at it, you will find three who will agree to be on your team.” Now you have reversed roles.

years. What I liked about it was that it didn’t matter what level a speaker you were at, from newbie to establish everyone would learn together and from one another. You can learn how to add humor, how to tell a story, etc. The two things I learned of value is no one cares how much you know, they only want to know how much you care, or basically what’s in it for them. Presenting is easier if you can tell stories. People may not remember your name but they will remember a story you shared. Most importantly share your own stories. Break a leg (good luck for actors or presenters)!

FHA’s HECM is Here to Stay By Garrett M. Kolb In my 35 years of mortgage lending, there has never been a product like the home equity conversion mortgage (HECM). The industry has seen its share of products but none like the often misunderstood reverse mortgage. The U.S. Department of Housing & Urban Development (HUD) has made several significant changes to the program over the past 18 months implementing borrower safeguards to mitigate risk to the Mortgage Insurance Fund. HUD’s changes appear to have worked in the short term, but still missed the long term issues facing the industry. Maintaining the collateral per the terms of the deed requires a cash flow analysis and the ability to set aside reserves to cover the expense of occupying the property. The much anticipated Mortgage Letter No. 2014-22 released in November during the National Association of Reverse Mortgage Lenders’ (NRMLA) Annual Meeting brings sense and sensibility to the program. Ask industry insiders about this Mortgagee Letter and the response will be “Financial Assessment.” This new guidance termed as Financial Assessment, provides much needed change to align the product with a time tested disposable income analysis utilized in the early days of FHA and VA lending. HUD states:

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“For borrowers who do not demonstrate their willingness to meet their loan obligations, life expectancy set-asides—full or partial—will be required.” “The mortgagee must evaluate the mortgagor’s willingness and capacity to timely meet his or her financial obligations and to comply with the mortgage requirements.” “In conducting this financial assessment, mortgagees must take into consideration that some mortgagors seek a HECM due to financial difficulties, which may be reflected in the mortgagor’s credit report and/or property charge payment history. The mortgagee must also consider to what extent the proceeds of the HECM could provide a solution to any such financial difficulties.” In short, Financial Assessment is a disposable income test to ensure the future payment of taxes, insurance and property maintenance are within the borrower’s ability to fund and provides a reserve (set-aside) when the analysis reflects otherwise. The guidance includes a review of the borrower’s credit history with specific guidance on recent late payments to help determine the “willingness” factor. Why offer a reverse mortgage without knowing if the client can afford the cost of maintaining the property? It sounds simple, but in the case of the HECM too many businesses did not do their homework and put themselves, the mortgage servicer and the MIP fund at risk. It is impossible to write policy that eliminates all risk but HUD’s newest guidance takes a giant step in the right direction. Analyzing the borrowers’ disposable income and mandating tax and insurance set-a-sides when needed, mitigates future problems for the borrower and all stakeholders. The HECM has come full circle as a legitimate financial tool. Garrett M. Kolb is senior managing director of correspondent and wholesale lending for Reverse Mortgage Solutions Inc. Garrett joined the RMS production team in 2011, and brings 35 years of sales management and financial services experience. He may be reached by phone at (888) 471-7191 or email gkolb@rmsnav.com.

MBA’s Mortgage Action Alliance A Message From MAA Chairwoman Amy Swaney

ith the 2013-2014 political cycle in the rearview mirror, I think it is important to reflect on our successes. I want to first say what a pleasure it has been to serve as your 2013-2014 Mortgage Action Alliance Chairman. The cycle was record-breaking for MAA, enrolling 8,876 active MAA members—more than double the number of members we started the cycle with. I traveled the country and connected with so many advocates across the nation, spreading awareness about MAA. I thank you all for your dedication to MBA, the Mortgage Action Alliance, and to our industry. We are shaping the future of real estate finance through advocacy and our grassroots network, and it would not be possible without your hard work and continued efforts. Last cycle, we employed some new and creative ways to spread the word about MAA. We came into 2013-2014 with two goals: Engage our state leaders, and spread MAA through engaging individual companies in recruitment efforts. As we had hoped, state associations, company leaders and individual MAA members met and welcomed this responsibility. We worked with state associations to run enrollment campaigns, and in October, the State MAA Enrollment Challenge increased our active membership by 1,556 members in a single month. We ran more than 40 individual company enrollment campaigns led by individual advocates all over the United States. Together, we built the momentum needed to head into the next cycle with the goal of reaching even higher. I am proud to have worked with such a dedicated team of advocates. For those who ran an MAA campaign or signed up individually this cycle—I thank you. For those of you who attended our National Advocacy Conference or met with your state or local representatives—I thank you. For those of you who responded to a Call to Action—I thank you. You are all doing your part. For those who did not, I challenge you to become a leader for the industry and be an active participant in moving the industry forward in 2015. If you would like to run an MAA campaign, please contact Stephanie Graham at (202) 557-2818 or e-mail sgraham@mba.org to receive an enrollment campaign kit and learn more about how you can engage your colleagues and employees in MBA’s advocacy programs. Real estate finance industry professionals who wish to join or learn more about the MAA can do so at www.mortgageactionalliance.org. If you have any questions regarding MBA’s advocacy programs, please contact MBA’s Assistant Director of Political Affairs Annie Gawkowski by phone at (202) 5572816 or e-mail agawkowski@mba.org.

Amy Swaney, CMB is governmental relations officer and branch manager with Scottsdale, Ariz.-based Citywide Home Loans. Amy is also chair of the Mortgage Action Alliance (MAA), a voluntary, non-partisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association (MBA). Amy may be reached by phone at (480) 822-6262, ext. 2164, e-mail amy@amyswaney.com or visit http://mba.org/Advocacy/MortgageActionAlliance.

SPONSORED EDITORIAL

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n National Mortgage Professional Magazine n JANUARY 2015

IF IT’S GOING TO BE … IT

JANUARY 2015 n National Mortgage Professional Magazine n

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By Brian Sacks s we start 2015, many originators have made their goals and are ready to implement them. Some will reach those goals, while others simply will end 2015 wondering just what went wrong. The best way to start the year is to look back at 2014. What went as planned? What didn’t go as planned? Why? There is usually much more to learn from your mistakes then there are from your successes. How many times have you put a plan together and seen it through to success. Than you move on to something else that catches your attention and never go back to what was working? There is a lot more to learn from mistakes. Recently, I posted a survey to my site, www.AgentsChaseYou.com, and asked them this very question: What was your biggest mistake in 2014? Here are just some of the responses:

l Goal setting and review was weak. l Not enough contact with real estate agents!

l l l l l l l l l l l

Staying in the mortgage business. Not networking enough. Not working hard enough Not effectively expanding your real estate agent referral base. Spending money advertising with Angie’s List. Not staying in touch with my database of past clients. Staying with the wrong company too long. Being completely unmotivated. Taking my eye off the ball. Not asking enough questions when speaking to new clients. Choosing the wrong recruiter.

As you read this … do you see a pattern? During my almost 30 years in the business, I have been an originator, a manager, a regional manager and the founder and president of a large training and consulting company. I have seen all sorts of markets and every type of originator. The responses above made me think back to my first years in the business. I was working for a bankowned mortgage banker. My manager was a great guy, but my “training” consisted of handing me a manual and a rate sheet and telling me to go out and bring in some deals.

Okay coach … now what? Naturally, I started going out and trying to meet real estate agents and builders. When I didn’t see success quickly (who would) I started to place blame. In my mind, I wasn’t succeeding because our rates were too high, we had a bad reputation, we didn’t provide any advertising, etc. It’s very natural to place blame but the key to success is the day you wake up and finally realize that YOU are the problem. YOU are also the solution. Don’t misunderstand me here. You must have a company with a platform built to originate and close loans. You must have a company that provides you with support. You must also have a company that has a good array of programs and decent pricing. Please notice what I did not say … I did not say you need a company with the BEST pricing because there simply is no such company in this business. To be fair, we are all pretty much the same with some slight differences. But what you need to focus on is YOU! l What are you doing to generate new business?

l What are you doing to get referrals? l What are you doing to get your name out there ? l What are you doing to sell the programs you do have? l What are you doing to make the customer experience excellent? l What are you doing to get referrals? l What are you doing to make yourself “referable?” l What are you doing to make your process run more smoothly? I would suggest that you take out a sheet of paper and copy these questions down right now. Think about what your current answer is to each of these questions. Then think about your end goal of what the answers should be. Now plan out exactly how you implement this.

What type of loan officer are you? Before I get into this topic, I want to be very clear that I am not suggesting which type you should choose. But you must realize that there are two types of loan officers and you must make a conscious choice as to which you want to be. Once you do, your life will become much clearer.

â&#x20AC;&#x153;There is usually much more to learn from your mistakes then there are from your successes.â&#x20AC;?

Tâ&#x20AC;&#x2122;S UP TO ME

Loan Officer #1 works for a company and expects the company to always have the best pricing, every imaginable product available, and strong internal support. This loan officer also expects the company to provide them with leads. In addition to the leads, the originator also wants strong marketing support and a done for you program for bringing in new business with strong marketing materials. Loan Officer #2 wants the same items as Loan Officer #1. But Loan Officer #2 will go out and start working on bringing in business in spite of any of the areas above that his/her company is deficient in. This loan officer realizes that â&#x20AC;&#x153;If itâ&#x20AC;&#x2122;s going to be â&#x20AC;Ś itâ&#x20AC;&#x2122;s up to me.â&#x20AC;? This is the time of year you must choose which loan officer you want to be for 2015 This will be a year of change. This will also be the year that separates the â&#x20AC;&#x153;Purchase Loan Officersâ&#x20AC;? from the â&#x20AC;&#x153;Refi Loan Officers.â&#x20AC;? There is nothing wrong with being Loan Officer #1, but you must realize that margins in our industry are being squeezed tight and that there is only a certain profit in each loan originated. That is a fact we all have to live with.

But if you really want to make a nice six figure income in this business than you must consider being Loan Officer #2. Please write this down and pin it to your computer â&#x20AC;Ś â&#x20AC;&#x153;If itâ&#x20AC;&#x2122;s going to be, itâ&#x20AC;&#x2122;s up to me!â&#x20AC;? Make these your words to live by in 2015, and here are my wishes to you for a happy, healthy and prosperous 2015! Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for in excess of $1 billion. He has trained, consulted and coached, tens of thousands of loan officers and company owners over the past 29 years on how to close more loans, make more money and still have a life. You can download his report, â&#x20AC;&#x153;The Four Tools You Can Use to Immediately Grow Your Business,â&#x20AC;? at www.AgentsChaseYou.com. Brian may be reached by phone at (443) 324-8424 or e-mail loanofficertips@gmail.com.

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EQUITY PRIME MORTGAGE NMLS #21116 Retail: (301) 996-4605 Wholesale: (201) 981-7855 http://www.equityprime.com/ http://www.equitytpo.com/

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Â É&#x160; É&#x160; , É&#x160; É&#x160; /, " - É&#x160; * # &#-.~ Â É&#x160; É&#x160;! .É&#x160; ) -É&#x160;.)É&#x160;." É&#x160;. & É&#x160; 3-É&#x160;*,#),É&#x160;.)É&#x160; &)-#(!É&#x160; 1" ( 0 ,É&#x160;*)--# & ~ Â É&#x160; É&#x160;1#, É&#x160; /( -É&#x160;.)É&#x160;." É&#x160; &)-#(!É&#x160;." É&#x160; 3É&#x160;*,#),~

“Taking the time to listen sparks creativity and boosts esteem. Imagine interacting with peers that were motivated and inspired to do the best each and every day.”

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Listen to Cultivate Culture By Kerry Elam

hen was the last time you truly listened to what the other person was saying? Many times we are consumed with getting our point across; we forget to simply listen before responding. How many times do you get off subject because of interjections of each person relating to the other? We all want to relate to each other as it is human nature. Yet we all want to be fully listened to as well. Taking the time to listen sparks creativity and boosts esteem. Imagine interacting with peers that were motivated and inspired to do the best each and every day. As Henry Ford said, “If there is any one secret of success, it lies in the ability to get the other person’s point of view and see things from his angle as well as your own.” Many times, it is not about being right, yet taking the time to allow both parties to actually be heard. This article explores various ways to enhance listening and communication

to cultivate a strong and steady culture that leads towards a common goal.

Active listening The way to become a better listener is to practice active listening. This is where you make a conscious effort to hear not only the words that another person is saying but, more importantly, try to understand the complete message being sent. In order to do this you must pay attention to the other person very carefully. You cannot allow yourself to become distracted by whatever else may be going on around you, or by forming counter arguments that you’ll make when the other person stops speaking. Nor can you allow yourself to get bored, and lose focus on what the other person is saying. All of these contribute to a lack of listening and understanding. To become an active listener practice ensuring you hear the other person and that the other person knows you are hearing what they say by: l Focused attention: Give the

speaker your full attention and acknowledge the message both verbally and non-verbally. Checking e-mail or texts during a conversation is a sure way to make the speaker feel less than important. Put away the phone and be attentive. Show listening: Use body language, such as smiling, nodding and subtle words such as “yes” and “I understand” to allow the speaker to feel comfortable in sharing ideas. Give feedback: Ensure that the speaker feels as though you understand what is being said. For instance, paraphrasing or asking clarifying questions. Save judgment: Allow the speaker to portray their message without interrupting as it may frustrate and derail what was being said. The speaker may not want to continue if there is a feeling you are not in agreement before they have even finished communicating. Be responsive: There is nothing

worse than radio silence when you have poured your heart and soul out and the listener says nothing. Even if you do not agree, be mindful and assert your opinions gracefully. Treat the other person in a way that you think he or she would want to be treated.

Summarize conversations Now that we have looked at active listening, the next part of listening is to summarize to ensure complete understanding and avoid miscommunications. Far too often, conflict arises from lack of understanding the full picture. We are quick to make assumptions to make decisions. In a conversation where information is exchanged, conclude with a summary statement. Summarizing will not only ensure accurate follow-through, it will help to ensure both parties are on the same page. Use statements such as: l What I am hearing is l Sounds like you are saying

l What do you mean when you say l Is this what you mean

Ask questions The questioning process enables us to become more interested in what the person is saying. And when we listen to someone respond to our question, we may see the situation more clearly or have awareness or better yet the person we are communicating with might come to their own resolution. Questions encourage others to continue forward. For example, Columbus could have asked himself, â&#x20AC;&#x153;Is there a sea route to India?â&#x20AC;? Now there is an art to asking questions by taking the learner mindset versus the judger. Focus on learning with questions to foster new possibilities: l What can we do about this? l What possibilities does this open up? l How can we stay on track? l What can we learn from this? On the other hand, judging questions are ones that are reactive and focus on the past. Be careful not to ask: l Why is this failure? l Whose fault is this? l Why canâ&#x20AC;&#x2122;t you get this right? Questions are powerful tools that can either hinder or catapult forward movement. As Albert Einstein said, â&#x20AC;&#x153;It

is not that Iâ&#x20AC;&#x2122;m so smart. But I stay with the questions much longer.â&#x20AC;? He was constantly asking why questions. Take a moment to ask why. Below is a list of potential questions from the book by Michael J. Marquardt, Leading With Questions: l Can that be done in any other way? l What resources have we never used? l What do we expect to happen if we do that? l What other options do we have? l What happens if â&#x20AC;Ś ?

Empathize Empathetic listening is similar to active listening with more of a focus on trying to understand the others feelings and emotions of what they are trying to communicate. You never know what another is going through. What is the true â&#x20AC;&#x153;rootâ&#x20AC;? of the problem or behavior? For example, someone on your team may not be focused on a big deliverable today and typically is on point. Many times, we will push and say why did you not do this? Versus, how are you today? Maybe they had a fight with a

loved one or found out someone close to them passed away, or their toilet over flooded with major damage this morning. Empathy is challenging as we are also facing our own daily struggles and conflict. Yet if we could slow down and take a moment to empathize before we judge in our relationships, they would go more smoothly. This takes patience and practice. Carl Rogers summarized eloquently, â&#x20AC;&#x153;Empathy is a special way of coming to know another and ourselves, a kind of attuning and understanding. When empathy is extended, it satisfies our needs and wish for intimacy, it rescues us from our feelings of aloneness.â&#x20AC;? In conclusion, listening is instrumental and the foundation for effective communication. At work, home, with our

significant other, our kids, it is necessary to building trust. With trust, come enhanced relationships to build a stable culture for continued success not only in the work place, but in our personal lives. As we are engaging in all aspects of life, that transfers into our workplaces. Take time to listen each and every day and see how much smoother interactions transpire. Kerry W. Elam is managing director of operations and human resources with Actualize Consulting. She oversees the finance, marketing and recruiting functions of the firm, and is also responsible for facilitating knowledge management, training and social activities for the employees of the firm. She may be reached by phone at (703) 868-1506, email kelam@actualizeconsulting.com or visit www.actualizeconsulting.com.

Markets may be volatile, but thereâ&#x20AC;&#x2122;s one thing you can always count on, the total commitment of our Mor tgage Team. Loyalty, continuity of ser vice and our dedication to protecting the integrity of our relationships are just a few of the things that set us apar t.

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“Attitudes are contagious. If you have enthusiasm and a desire to be the best, then others around you will do the same.”

Nine Ways to Leverage Culture to Grow Business By Allen Beydoun have a shared vision that everyone in the company must know, understand and live each day. At United Wholesale Mortgage (UWM), our vision is within the pillars of our constitution. We live and breathe our pillars daily. They are, in themselves, secrets to our success. In this article I

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I’m often asked about the fundamental elements that drive the success of our business. The answer is simple: Our culture and our people. Sure, bright colors and contemporary furniture are cool, but a culture comes from your people. A successful company must also

will be sharing some core elements of our pillars and how we leverage them to grow our business.

People are our greatest asset A lot of times, business leaders make the mistake of looking solely at spreadsheets and charts to make decisions. Or they think the company is successful because they have the latest technology, and bring in revenue. Don’t make this mistake. Your people are your greatest asset. One of the biggest secrets to running a successful company is having great people. I consider my company one team, one company, and we work together to accomplish our goals. We believe every single team member is essential to our growth and success. Notice, I called them team members, not employees. Our managers, referred to as team leaders, inspire and guide team members to assist in reaching personal and company goals. It seems simple, but titles compliment your vision to help mold a new mindset to support your overall culture.

Work, effort and attitude

a t io n a lR e a lE w w w.T h e N

s t a t e Po s t. c o

JUSTICE. JUSTICE.

no, reallyy.... just US.

Frank Garay & Brian Stevens

Every successful person I’ve met radiates a strong work ethic and positive attitude. These two traits play a major role in creating a formula for success. I challenge our team every day to find someone that is outworking our team. Couple this with positive attitude and you have a winning combination. Attitudes are contagious. If you have enthusiasm and a desire to be the best, then others around you will do the same. Conversely, if someone on your team is negative it effects morale. They have the potential to drag everyone down with them which could impact production. It’s important to rid your organization of these types of people. Reward your team members that possess a strong work ethic and positive attitude. They can help create and build a culture that attracts talented individuals full of passion, energy and excitement.

Fun and friendship If you create a culture where everyone enjoys what they do, you will build a stronger organization. Providing an environment where you work hard but enjoy what you’re doing is a simple formula for success. Often, individuals in sales are competitive by nature, so play off their desire to be number one by creating sales contests. It’s important to keep the contests short so that they are impactful and you don’t need to spend a lot of money to make it fun. For example, at my company, we ran a contest called “Capture the Flag.” Lasting for one month, our sales teams competed against a different team each day to capture flags based on new loan submissions. The team with the most flags at the end of the month won a round of golf and I was their caddy. Everyone worked hard to win this prize, not because of the free golf, but because I would be at their beck and call. When your leaders get involved, it shows that it’s acceptable to have fun and will encourage team collaboration from all levels of the organization. In addition, the prize was a team-building experience, because it allowed the team to enjoy time together outside of work.

Constant improvement is essential to long-term success You’ve heard the statement, “What got us here, won’t get us there.” That’s exactly what continuous improvement is all about. UWM is one of the largest and fastest growing wholesale lenders in the country. One of the reasons is because we are constantly asking ourselves how we can get better every day. And we don’t plan to ever stop asking that question. Successful companies need to continue to grow and evolve and it starts with leadership. By encouraging new ideas and processes, your company will stay relevant and will head in the right direction.

Service is everyone’s responsibility Having an exceptional level of service can differentiate you from your competition. Are you setting expectations with

your clients and delivering on your promises? It all starts internally. At my firm, service is one of our strengths, and that is because we view internal and external service to have equal importance. In order to best service your clients, you need to interact positively within the walls of your organization. If you are able to provide unparalleled service internally, then your external service will be just as impactful. Itâ&#x20AC;&#x2122;s important that you establish expectations with all of your team members, from the receptionists to the CEO, no one should be exempt. Then, make it a point to tell your clients what your service guarantees are. When you communicate your promises, you can hold yourselves accountable to deliver elite client service.

comments, both good and bad. It is important that clients know that their feedback is appreciated and taken seriously.

Itâ&#x20AC;&#x2122;s all about the relationship

One of the simplest fundamentals that is underutilized is communication. Oneâ&#x20AC;&#x2122;s trust and reputation is often built upon the ability to communicate. There is no such thing as over-communicating. Whether you are involved in a purchase or refinance, provide an open line of communication with all parties. Itâ&#x20AC;&#x2122;s just as important to deliver bad news as quickly as you deliver good news. Every time you receive an update, communicate it. No one likes to be left in the dark. Some of these concepts might seem obvious, but the hard part is implementing them over and over again. The greatest investment is your time and dedication. A successful business isnâ&#x20AC;&#x2122;t something that happens overnight. It is shaped and developed over time. My best advice for the New Year is to invest in growing and cultivating your people and your culture. In time, this will pay dividends and you will be happy you took the time to invest in your success.

turn times and constant communication between UWMâ&#x20AC;&#x2122;s operations team and brokers. Recently, Beydoun was named

as one of â&#x20AC;&#x153;The Top 40 Mortgage Professionals Under 40â&#x20AC;? by National Mortgage Professional Magazine.

Be a thumb-pointer Once you gauge client satisfaction, itâ&#x20AC;&#x2122;s important to handle adverse situations promptly and responsibly. When you get a complaint, donâ&#x20AC;&#x2122;t ignore it. Do your research and call the client immediately. When you make the call, be a thumb-pointer. It is easy to blame othersâ&#x20AC;&#x201D;to point your fingerâ&#x20AC;&#x201D;but turn that around and point at yourself. Ask yourself â&#x20AC;&#x153;What could I have done betterâ&#x20AC;?? By simply changing that mindset you seek to understand from a different point of view.

Communication is crucial

Allen Beydoun leads nearly 300 account executives, team leaders, division managers and developmental teams as executive vice president, sales of United Wholesale Mortgage (UWM). Beydoun joined UWM as an account executive in 2007 and developed a strong understanding of customer dynamics to create a leadership style that would further drive UWMâ&#x20AC;&#x2122;s commitment to â&#x20AC;&#x153;Lending Made Easy.â&#x20AC;? His impressive leadership guides the entire team of UWM in providing exceptional client service, consistent

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Ask for feedback Successful companies donâ&#x20AC;&#x2122;t just process transactions for clients and wash their hands of them. Successful companies ask their clients about their experience. With todayâ&#x20AC;&#x2122;s technology it is easy to receive feedback. There are many different tools that can be used for surveying your clientsâ&#x20AC;&#x2122; experience. Whether you choose a free option or one that costs money, there is a solution to fit everyoneâ&#x20AC;&#x2122;s budget. Consider sending a simple survey asking a series of questions to manually gauge data, or utilize more complex tools such as Net Promoter Score (NPS). At UWM, weâ&#x20AC;&#x2122;ve implemented a system where we provide a link on our team member email signatures providing our clients the opportunity to share their experience. The key is to take that feedback and do something with it. We always call the client and thank them for their

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In our industry, you have to be relationship-driven, not transaction driven. My company focuses on the relationship to take our partnerships to the next level. There is a big difference between a satisfied customer and a loyal client. We want to create success stories and we aim to wow our clients to earn repeat business. Every successful company does the same thing. They get clients to come back to them time and time again and if they are really good, those same clients also refer their friends and family.

“Job hunters have more freedom to research and make an educated decision about accepting a job with a company that provides an enticing work environment best suited to fit their needs.”

Satisfaction in the Office: Keeping Employees Happy By Ashley Lubey

The grass is always greener on the other side. Or so the saying goes. When the economy crashed, people did what they needed to survive the Great Recession. People took any job available to avoid being unemployed and continue paying bills as the economy took a dive. But times are changing and improving. So rather than taking the first job

offered, professionals are once again able to be picky when making their employment decisions and joining a company. Job hunters have more freedom to research and make an educated decision about accepting a job with a company that provides an enticing work environment best suited to fit their needs. This article explores four main

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The National Association of Professional Mortgage Women (NAPMW) Partners in Progress sponsor program is designed for companies of all sizes interested in enhancing their national presence with NAPMW, the premier community of professionals in the mortgage banking industry. NAPMW’s sponsor packages are priced to encourage participation by businesses of all sizes. The fee for each package is affordable and all maximize sponsors’ exposure beyond what would be received if purchased individually. Primary benefits include: • National visibility to professionals from all areas of the mortgage industry • Advertising exposure through numerous proven communication channels • High-profile marketing at key association events For more information or to become a sponsor of the Partners in Progrees program, contact: DEANNA MELLAS North American Title Company Business Consultant, National Partners in Progress Chair c: 832.465.6413 e: dmellas@nat.com www.nat.com/DeannaMellas www.nat.com/Texas

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qualities that draw an employee to an organization and foster a positive work environment for happy employees: benefits, compensation, a respectful atmosphere, and a motivating culture. Employees often take into account the benefits of a position before accepting an employment offer at a company. Besides a robust 401K plan and medical, dental, and vision coverage options, employees also look at additional included perks. Will a holiday bonus be given? Are gym membership discounts available or workout classes provided at lunchtime? Does the department allow employees to work remotely? How is personal time off and sick time accrued? Employees look at the overall “benefits” package when making a decision. A work-life balance is incredibly important, as well as being able to plan for and reach goals in the future. Having the opportunity to spend time making this important decision is allowing job searchers and current employees to weigh their options and ensure they are positioning themselves to succeed moving forward. Are you setting up your workforce for success? Offering incentives allows employees to feel secure, stable, and valued. These added perks assist employees in developing and maintaining a healthy, efficient lifestyle, which in turn benefits the company through their improved quality of work. A company that invests in their employees will reap the benefits of growing an appreciative and dedicated team of professionals. Benefits paired with an appropriate wage can be a major differentiating factor between competing companies vying for top-tier talent. Professionals today are earning degrees, enrolling in additional educational classes, attending conferences, and doing everything in their power to remain at the top of his or her field. The position and overall responsibilities should be taken into consideration when determining a competitive and appropriate compensation. Employers should research an appropriate wage based on skill level, experience, industry standards, and geographic location. A company unwilling to pay for talent won’t be able to build

an experienced team poised to produce unique, quality work. Building a team of true professionals with a high-level skillset is difficult as experts are in high demand and expect a competitive wage. Talented professionals are more likely to remain at a company they enjoy working for where they are being properly compensated and feel the perks and work environment meet his or her demands for being successful. Be prepared to pay a comparable salary that attracts high-level professionals and encourages company loyalty. Be the company that is offering the best deal in town, not the one losing the talent to others. Generally speaking, an office environment consists of professional adults who applied for and agreed to their position within the company. Do you want your employees to perform in a timely and profitable manner? Treat them with respect. Employees are more likely to work harder for management they feel respect them and place value in their good work. Create a positive environment by focusing all interactions and communications around respect. It’s a little word that goes a long way. We have all been in a situation where a condescending tone or snide, entitled remark makes us cringe and question our job, our projects, and ourselves. Looking for a quick remedy to this problem? Use the Golden Rule. How would you want to be treated in the same situation? In almost every case, treating employees with respect will result in higher quality finished projects and improved work relationships. Setting a respectful tone in the office allows employees to feel safe and encourages them to be more willing to contribute ideas and solutions thereby improving business as a whole. Communicating using positive reinforcement will keep employees happier, motivated and working harder. An employee who feels disrespected experiences a low morale. Low morale leads to decreased productivity and an increase in absenteeism, conflict, and employee turnover rates. Respecting people goes a long way in creating an effective working relationship. Having

rewards and incentives to work towards motivates employees to be more productive. Additionally, many companies are providing extra job training. Giving employees the opportunity to grow and continue their education is an incredible morale booster. Remember, employees are people, too. They are rational people who will react professionally when treated with respect. Showing your faith in people and supporting them in their career development proves you place value in them and their work. With respect comes the concept of motivating the workforce with a rewarding culture. A “work hard, play hard” mentality is one that has been adopted by many companies. Most of the companies that have been voted “best companies to work for” in the

nation have implemented Friday happy hours, monthly employee lunches, break rooms stocked with snacks, and creative activities designed to help employees unwind and reenergize. Bottom lines and profitability are obviously important. But so is keeping the workforce happy, content and inspired. Skipping out on such expenses might seem like smart business sense but can ultimately hurt the company in the long run when employees find themselves working hard with little reward and ultimately burning out. Showing employees they are cared about increases their desire to deliver quality work. Studies have shown that employees with their nose to the grind are less productive and less attentive to details than those who take breaks and allow their minds to relax at regular intervals. Developing

an open, creative, and constructive work environment has proven to be incredibly beneficial to the success of many businesses. This concept of building a supportive culture enables employees to feel like part of something important and meaningful. Be the greener grass. Create a work environment so appealing, supportive, and inclusive that you attract the best talent and dedicated workers in your field. Establish your company as the ultimate destination for professionals in their career. Providing benefits, a competitive salary, a respectful atmosphere, and a motivating culture are just some ways you can ensure your employees’ satisfaction in the workplace. By creating an inspiring and rewarding work environment, you are allowing employees to work to the best of their ability and

deliver well-informed results. Do you want to be known solely for pumping out numbers and production? Or do you want your company to have a reputation for developing a successful business model based on the creation of a collaborative and respectful environment with happy and dedicated employees? Consider these questions as you take a closer look at how your organization is run as well as the desired reputation of your company. Happy employees create a happy company! Ashley Lubey is copywriter and public relations specialist for CMG Financial. She graduated from Saint Mary’s College of California with a bachelor’s degree in communications. She may be reached by phone at (925) 983-3207 or e-mail alubey@cmgfi.com. 59

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“Even if you have all the money in the world, a man, to be a man, must work.”

The Grass Is Greener on Seti Alpha IV By Eric Weinstein

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The economic picture of the future is somewhat different. You see, money doesn’t exist in the 24th Century. The acquisition of wealth is no longer the driving force in our lives. We work to better ourselves and the rest of humanity … so said Captain Picard in “Star Trek: First Contact” In 2008, I took my chips off the table, closed my mortgage company and retired at the age of 50. After about 12 months of

watching Dr. Phil and the Ricki Lake show, I was ready to shoot myself in the head with a Type-2 Phaser. True story. I actually applied for a job as a dispatcher for DirecTV just to have something to do. Here I was with an MBA, just coming off of owning one of the largest mortgage companies in the country and they turned me down because I did not have any experience as a dispatcher!

It was then that I got my loan officer’s license and did the only job I knew how to do, be a mortgage loan officer. I have been doing this about five years, and there are times when I say to myself, “I don’t need this crap, I can just retire,” but who am I kidding? Even if you have all the money in the world, a man, to be a man, must work. “Star Trek” shows a post-scarcity society—the combination of practically unlimited energy (from antimatter/matter reactions focused through dilithium crystals) and replication technology means that in the Star Trek universe almost every want of humans can be produced without the need for capital or labor. It is an unfortunate condition that mankind is always seeking more: More money, more conveniences, more luxuries, more love, more self-esteem, etc. It is a soul-sucking black hole that can never been filled and leads to human frailties like greed, pride, gluttony and the other seven deadly sins. Sure, if you can make more money somewhere else, or if you hate your job, it makes sense to move, but before you do that, really ask yourself if it is for the better or are you just running away from yourself. Being a loan officer is a zero-sum game. Other places may pay you more, but you are required to do more. Either they are paying for the services, like processing, or you are by devoting more time and opportunity cost. Possibly you can change careers and make more money as a dog groomer or a phone sanitizer. Go for it! Just don’t move because you think its better. Nothing is better. It is the same, just different. After a point, you will get to the place where you have everything you want. You will have enough money, a loving family and respect in the industry. What more is there? It is times like these that I look to a higher intelligence for an answer … Star Trek. As Captain Picard said, then we move on to bettering ourselves and humanity. That is why I do mortgages! I have a loan right now where the property is only 500-square feet. The appraisal is taking forever, the real estate agents are yelling at me and the

borrowers are threatening to switch loan officers. I am tearing out my hair, questioning the loan, my career choices and what Dr. Phil would advise me to do. Times like this make me want to run off to Bora Bora! Then, I take a deep breath, count to 10 and remember all the other loans I had just like this. In the end, at closing, the buyer and real estate agents are smiling, everyone is friends and everyone is happy. I have fulfilled my basic programming by making humanity just a little bit better. Okay, so we all can’t cure cancer, but helping people and doing good things are little baby steps toward helping all of humanity. People buying homes make them stable, Stable people are more likely to do good things. Who knows, maybe by raising their daughter in a good environment she becomes the one who cures diabetes! For me, there is nothing better to do. Despite all the aggravations, anxieties and angst, it is the best life in the world. And as to life, even with all the troubles, trials and tribulations, it beats the alternative. Maybe today is the day you take stock of everything in your life and realize you are truly already content. More stuff and a different job are not going to help. Doing good things in life, helping people, bettering your self is really the answer. To that, I say “Mr. Crusher, Engage.” Parts quoted without shame from www.quora.com/How-can-the-worldfunction-without-money-in-Star-Trek. Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. These days, Eric is semi-retired, doing mortgages by referral only. As he likes to put it, “He is either saving people money per month or helping them buy a new home. What a great job!” He may be reached by phone at (703) 505-8692 or email eweinstein4u@gmail.com.

“The secret of my success is that we have gone to exceptional lengths to hire the best people in the world.”—Steve Jobs

Recruitment: How to Attract the Very Best By Brent Emler As 2015 arrives, many of us will be thinking about the key areas in which we can grow our business. One of the obvious ways to grow a mortgage business is by hiring talented, motivated originators. The difficult part is knowing how to attract the particularly motivated, successful personalities; those who will drive our vision forward

with energy. We know what we want, but do we know what they want and do those two worlds align? Companies who intend to hire have an important set of criteria to which they refer throughout the recruitment and interview process. Beyond that, however, is an important step that can be the make or break quotient in the

hiring formula and unfortunately, it’s often overlooked. A company must first look inward to develop a strategy around their hiring process. First, leadership needs to invest in an honest evaluation of their operational processes, technological systems, and company culture and really define who they are, what their strengths are, and what they have to offer. With that knowledge, define the type of originator who would best fit and then begin doing some very targeted head-hunting. Next, a system for developing a potential originator’s trust is key. What

is your message? What happens after the initial contact? What material can be sent to bolster your position and demonstrate your strengths? How often will follow up calls be made and who will be responsible to make them? How do you know if a new applicant is a good fit for your company? Is your hiring and onboarding process designed to be a seamless and pleasant transition for a new originator? Systems and processes are just as important when it comes to hiring as they are in conducting your day to day continued on page 62

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how to attract the very best continued from page 61

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business. For those companies with the resources, I would highly recommend partnering with an established recruitment company who can help you design and implement your system for maximum results. On the other side, a loan officer must spend the time to really figure out who he or she is as an originator. Many times, the initial question an originator will approach a company with is, “What are your turn times?” or “What niche product would I have to sell?”, or “How are you priced?” While these are appropriate questions, there are several others that are vital to maturely and carefully making the decision to start with a new company: What type of company culture brings out the best in me? What’s my target audience and does this potential employer provide the necessary tools, resources, and product offerings I’ll need to foster growth in my area of strength? Does the leadership overmanage or under-manage? How does the support staff and marketing technology facilitate my ability to meet my production goals? Drew Waterhouse and Eric Levin of Hammerhouse Strategic Growth Partners, provide us with some valuable insight with an annual survey conducted expressly for the purpose of … “understanding originator opinions on critical issues facing the mortgage industry and impacting their production and job performance …”

There are six core components evaluated through this survey: 1. Leadership 2. Culture 3. Business Model 4. Operations 5. Technology 6. Geography The conclusions arrived at with the 2014 survey indicate that we are now in an environment where lenders must convince proven producers, both existing and potential originators, that they offer the combination of benefits that will best serve them in the current environment of comprehensive compliance and regulatory restraints. Key Retention and Recruiting Factors in 2014 were: l Platform to build the originator’s brand in the marketplace l Robust business development systems l Competitive pricing model and product growth strategy l Jumbo lending as a focus l Infrastructure to protect originators from compliance traps that can impact licensing As this article is being written, 2015’s survey is being compiled for release in February. Last year’s survey demonstrated that the general feeling

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in the industry was that we were entering a healthier market; originators were feeling more secure about lending in general and were focusing on the need for strong leadership, sound compliance processes, and successful marketing platforms. The year 2015 promises to continue that trend and the expectation is that the results will focus further towards companies and systems that support strong relationship building with referral partners. As a professional who provides marketing software and services to individual loan officers and to larger corporate entities, I can tell you that there is a marked difference in the level of success experienced by those with a comprehensive strategy for addressing originator concerns and those who meander through their business and marketing plans with the attitude that “as long as I’m checking the basic boxes, we’re going to be successful”. More than ever, loan officers need the security of a company which invests in process and technology to protect them from the compliance pitfalls that now exist. Furthermore, these systems simply must facilitate marketing a strong brand and message through compliant print, email, video, and social media advertisement. With the qualified mortgage (QM) rule implemented a year ago, volume becomes key to an originators success. A loan officer has to bring in more business to make the same living. Marketing departments all over the United States are taking on more and more of the actionable marketing load in order to leave their originators free to do what they do best—create and maintain relationships and bring in business. Part of the challenge marketing departments face is consistently deploying marketing material that is focused, interesting, compliant, and most of all, effective. The only thing that can make this possible on a large scale is a system built specifically to execute marketing tasks on behalf of the originator. Automated, set-it-and-forget-it campaigns are vital to the consistent flow of valuable content. If an originator can rest in the fact that their marketing is being done and is working, they can really focus their ener-

gy on building relationships with referral partners and the overall client experience. Additionally, think of the value that automatic campaigns could be to your recruitment process. It’s a perfect way to introduce your marketing platform and the quality and variety of your products. Design an entire line of marketing material focused on recruitment and strengthen your hiring position by delivering real results. Selling can be a very “rinse and repeat” venture and has the danger of becoming boring or redundant to both your sales force and your clients. If you do not have a plan in place to keep your product offerings fresh and current, your message will stagnate as will interest from your potential client base. As a company, make sure that you provide new financing opportunities to give both your originators and clients something to get excited about. If you don’t remain open to the corporate discomfort of adding new products to your portfolio, you might be missing out on a valuable market segment. Your potential hires will want to know that this is as important to you as it is to them. While I’ve touched on several specific things that you can do to increase your chances of attracting top talent, I want to emphasize the importance of knowing how to identify the right originator for your company. You may have a brilliant recruitment system that is in place and working well for you, but if you’re not approaching each individual with the intention of discovering who they are in a holistic way and then requiring that there be alignment with what you can deliver as an employer, you may hire a qualified individual who is actually so far out of synch with your company culture and process that ultimately, you both end up frustrated, unfulfilled, and unsuccessful. If you’d like to learn more about the model-matching process, please visit www.teamhammerhouse.com. May 2015 be a year of resounding success for you and your team! Brent Emler is director of sales and marketing at Velma.com, a customizable marketing software provider exclusive to the mortgage industry. He may be reached by e-mail at brent@velma.com.

“Often, an HR professional will compare your resume to what you have on LinkedIn looking for potential discrepancies.”

The 12 Steps to Strategically Stage Your Interview By Laura Burke, EA, MBA, MS

continued on page 64

Loan Officers, Branch Managers and Teams,

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© Copyright 2007-2014 Carrington Mortgage Services, LLC headquartered at 1610 E. Saint Andrew Place, Suite B150, Santa Ana, CA 92705. Toll Free (800)561-4567. NMLS ID 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745; 2159 McCulloch Blvd 4, Lake Havasu City, AZ 86403. CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File No. 413 0904. CO: Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law. MO: Residential Mortgage Broker License 09-1746-S. NH: Licensed by the New Hampshire Banking Department. NJ: Licensed by the N.J. Department of Banking and Insurance. NY: Licensed Mortgage Banker—NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. OH: Ohio Mortgage Broker Act Mortgage Banker Exemption MBMB.850208.000 (FHA DE & VA Automatic loans only) OR: Mortgage Lender License ML-4886. PA: Licensed by the Department of Banking. RI: Rhode Island Licensed Lender, Lender License 20112809LL. VA: Licensed by the Virginia State Corporation Commission MC-5382. WA: Consumer Loan License CL-2600. Also licensed in AL, AR, CT, DE, DC, FL, ID, IN, ME, MD, MI, NM, NC, OK, SC, TN, TX, WV and WI. All rights reserved.

n National Mortgage Professional Magazine n JANUARY 2015

is nothing more than a wish list. That the ideal candidate would possess the matching skills being sought after, but more often the right candidate would NOT have all of them. A strong candidate that had other qualities such as team spirit, additional education or experience would also be chosen to interview, as if the candidate was strong in other areas, some requirements could be temporarily forgone, and the newly hired person could take specific courses for missing certifications. Honesty, integrity and ethics still ranked high with all HR hiring professionals, as well as handwritten thank you notes, as opposed to a quick e-mail. The handwritten note showed effort, and thought put into sending a follow-up message. Asking for feedback via e-mail is okay. For example, “Hi, I just wanted to touch base after our conversation last Friday to follow through; can you please tell me the status of the position I applied for?” You have just asked for the status of the position, not your status. This will often open the door to invite a conversation to start. You might hear a response like, “We are still reviewing all resumes, and our planned cutoff date is Thursday. At which point our VP will be reviewing all candidates and choosing five to come in for live interviews” or “We have chosen three candidates, and will be making our final decision shortly.” This lets you know where you fit in without directly asking for feedback. Once you have had a live interview, then you should ask for personal feedback, “Hi, I enjoyed our meeting last Tuesday, I just wanted to follow-up with a status check on position, and if there may be any unanswered questions from our meeting?”

interview I had, I said, “Okey, dokey!” Yes, those strange words came rambling out of my mouth, like a bad movie. I knew as soon as I said it … I wanted to take my words back. I was thinking in my head, “Okey, dokey … wow, where did that come from?” I don’t even say those words in my daily speech, I simply got nervous and said something I interpreted to be stupid. I lost my train of thought and focus. I just wanted to hang up, and start over. I did not get called back,

NationalMortgageProfessional.com

In today’s marketplace, millions of Americans are currently unemployed, so job competition is fierce. Knowing how to job search is your first step, your second step in the process is acing the interview. In a recently attended a professional development seminar presented by Gary Pezzuiti, “Interviewing From Both Sides of the Desk,” where we looked at shifting your focus from “What’s in it for me?” to a “How can I help?” perspective. The room was filled with half HR professionals, and the other half with industry professionals. There was a consensus about keeping your resume up to date. One very strategic step was to tailor your resume for each position you were applying for by interspersing key verbiage used in the job description. This is a little more time consuming, but presents a laser focused resume, rather than a vanilla all around resume. It is also important to keep your LinkedIn profile up to date. Many HR personnel research candidates on LinkedIn and yes, even Facebook! Watch what you say on Facebook, it is not as private as you once thought it was. Often, an HR professional will compare your resume to what you have on LinkedIn looking for potential discrepancies. LinkedIn is a good networking tool and a tremendous help in searching for key job positions, use it wisely. Know what positions you are interested in, and stay focused on those that fit your criteria and you fit theirs. Another aspect I heard mentioned during the seminar was that even if you didn’t have all of the exact qualifications being asked for, apply anyway. The HR personnel that attended the session stated that, oftentimes, the list of qualifications

Before any interview, practice answering questions you think you may be asked. Be able to discuss your strengths and weaknesses. Discuss past accomplishments without sounding as if you are bragging. Know the company you are interviewing with. Study them, and research the company online. You need to know as much information about the company you are applying for in order to speak intelligently when being interviewed. All too often, we get nervous and say things we wouldn’t normally say. I remember at the end of a phone

strategically stage your interview continued from page 63

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maybe because of those words, maybe not. In my mind, it will always be because of “okey, dokey.” I shiver just thinking about it. By practicing ways to respond effectively to questions will help elevate some of your tension and nervousness. For live interviews, choosing your wardrobe is also very important. You want to dress to impress, you don’t want to be over-dressed and never be undressed. Dress for the position you are applying for. A suit for men is always appropriate, with a tie. You can choose the color of the shirt and tie to match the position you are applying for. If applying for a loan officer position, you have some latitude with colors and patterns, verses applying for executive position which may require a stricter color code, one of basic, acceptable colors. Having two strong interview outfits is a must. Make sure they are cleaned, pressed and always ready to go. When doing a phone interview, dress up for it. Put on a suit; fix your hair, and make-up. The better you feel, the stronger your personality

and professionalism will come through. Never interview in your PJ’s or sweatpants! As a woman, I recommend a business suit as well. You will always look professional and never be mistaken for being improperly dressed. You too can play with the colors of your suit, blouse, scarf and accessories. Always look fresh, wellgroomed and like the person you would hire for the position. Certain colors speak volumes about who we are. Some quick inside tips are black, and red are power colors. They make bold statements about who we are, and command respect. Your blues are a step down, but are also professional, yellow is a weaker color. Oranges are unique, and I wouldn’t choose to wear orange unless I was applying for a cosmetic position or an acting position. Basic black and white together is also eye-catching, bold and makes a statement. Good grooming should be a given, clean nails, polished or well-manicured for women. Hair style should be attractive and not ostentatious.

Be yourself! Don’t try to be someone else, or to walk in someone else’s shoes. There’s a fine line between fake it until you make it, and being yourself. You will know when you’ve crossed the line. Honesty, integrity and ethics are three personality traits sought after, make sure yours are showing. I look at interviewing as a process—a series of actions or steps taken in order to achieve a particular end. By following these strategic steps, you will master your interview. Twelve steps to leverage your chances of landing your next dream job: 1. Choose the parameters of search for new position 2. Know the salary range you are looking for 3. Research key companies you would like to work for 4. Look up a company’s hiring in Career Builder, Ladders, etc. 5. Apply for positions using a target resume 6. Once called for the interview, do your homework and research the company 7. Practice interviewing, questions and answers

8. Have an interview outfit already chosen 9. Smile and be confident on the interview 10. Follow-up with a personal, handwritten thank you note 11. One week later, follow up with status check 12. You have been chosen for the final interview This process is for any career opportunity, loan officer, processor, underwriter, manager or executive level positions, all require the same interview skills and strategic interview design. By creating your unique, individually styled, well thought-out and planned interview, you will be on top of your game. Laura Lynn Burke, EA, CFE, MBA, MS MIS (2015) has gone from Avon lady to chief executive officer of her own mortgage company, residential and commercial. She currently owns Global Tax Masters, along with a tax school, The Global Tax Training Institute. Laura is a Certified Fraud Examiner, and studied information security along with digital forensics. She may be reached by phone at (708) 692-6199 or e-mail lauralynnburke@gmail.com.

NMP Daily is the mortgage industry's source for news, insights, trends and tips. It keeps subscribers informed of the regulatory and legislative updates, latest industry happenings and breaking news about the mortgage technologies and services.

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NAPMW REPORT J A N U A R Y

2 0 1 5

Helping Mortgage Associations Grow

A Message From NAPMW Atlanta President Nikki Bell

From affordable association management services to creating vibrant and profitable conferences, Agility Resources Group can help your mortgage association achieve a stronger bottom line.

As we enter a new year, everyone begins with their resolutions to lose weight, become more organized, save more money, etc., so now is the perfect time to RE-Charge your business. This industry shrinks daily under the weight of new laws and regulations, creating a more competitive environment. This should encourage each one of us to be more forward-thinking, and to foster new personal and professional development strategies. Now is the time for companies and team leaders to re-evaluate the mission, vision and goals of the company and/or team. An organization that has actively engaged employees and customers will have a dynamic culture … a culture that allows for a competitive advantage by being difficult to replicate at the organization down the street. Leaders need to understand that they must change the ordinary into extraordinary, so their employees and customers will articulate the mission and vision with passion and enthusiasm, thus attracting higher quality employees and new customers. The basic fundamental of customer engagement is to create a strong personal brand through knowing your passion and purpose. As a leader, cast your vision to influence the team with an authentic clear concise message. This influence will have an impact on retaining and attracting new customers or other measures which create and bring value to the business. What are your customers and employees talking about? Is it a new product or lack of innovation or is it a new trend in business they want to know about and cannot find an outlet for this information? Create new opportunities for your customers by offering education, networking events and creative roundtable discussions. This will allow businesses to become a resource and attract new customers. Create a new message in 2015 by RE-Charging business with NAPMW. NAPMW exists to inspire individuals in the mortgage industry by keeping its members up-to-date on the latest technology, industry trends and marketing insights. There is a clear correlation between a company’s leadership and customer engagement. When leaders recognize the importance to motivate and inspire those around them, a strong culture will flourish, and everyone will begin to thrive. Leap into 2015 with NAPMW and let us RE-Charge you and your business.

Conference Producers

Association Managers

Contact Vincent M. Valvo, CEO 860.922.3441 or info@AgilityResourcesGroup.com

www.AgilityResourcesGroup.com 65

We ar Califor e Premie nia’s r Private Direct M and Br oney idg Lender e

Apartments and units (5+ residential units) • Up to 70% on refinance and purchases • Stated but verified rental income of property • Loan terms: 1 year, 3 year, 5 year, 7 year and 10 year; fixed IO or fully amortized • Rates from 8.00% and up • Programs with no PP available depending on LTV, term and prepayment penalty • We have 2nd position loans available for our commercial products up to 60% CLTV • 5-7 days closing available

Commercial (industrial, retail, church, mixed-use, gas station, auto related, manufacturing, etc.) • Up to 55% on reﬁnances • Up to 60%-65% on purchases • Term 1 to 5 years Land loan (max LTV 35%, reﬁnance, 50% purchase) call for details

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Disclosures: per FDIC Regulations Section 6500 Part 226, Subpart C, 226.24. The amount of each payment that will apply over the term of the loan is based on simple annual interest applied to the unpaid balance. Loans range from 1 day to 60 months, are interest only and include a balloon payment due at term. Finance charges apply. Payments do not include amounts per property taxes or insurance premiums. This is not a commitment to lend. Rates and points are subject to change without notice. NMLS #357614

n National Mortgage Professional Magazine n JANUARY 2015

Stated Business Purpose Loans on Residential Properties • Reﬁnances up to 65% LTV, min loan amount 50K to 5 million • Purchases up to 70% min. loan amount 50K to 5 million • Loan term, 6 months, 3 year, 5 year, interest only or fully amortized available • Programs with no PP available • Rates from 8.50% and up depending on LTV term and prepayment penalty • We have 2nd position loans available for n/o/o and investment properties up to 55%-60% CLTV • 5-7 days closing available

NationalMortgageProfessional.com

Nikki Bell is the vice president of business development for BrandMortgage. She serves as president for NAPMW Atlanta and is a member of the board for the Mortgage Bankers Association of Georgia (MBAG). Nikki also serves on various committees with MBAG and the Atlanta Board of Realtors. Nikki earned her BAS in organizational leadership from Mercer University. She may be reached by phone at (678) 442-3966 or e-mail nbell@brandmortgage.com.

Ask us about our creative approach to partnering with you. We’ll bring the help you need to achieve the results you depend on.

calendar of events N A T I O N A L

JANUARY 2015

APRIL 2015

Thursday-Friday, January 29-30

Thursday, April 2

California Association of Mortgage Professionals 2015 Sales & Marketing Conference Hilton Los Angeles/Universal City 555 Universal Hollywood Drive Universal City, Calif. For more information, call (916) 448-8236, e-mail info@ca-amp.org or visit www.thecampsite.org.

Texas Mortgage Roundup 2015 Hyatt Regency San Antonio 123 Losoya Street San Antonio, Texas For more information, call (860) 922-3441, e-mail info@agilityresourcesgroup.com or visit www.txmortgageroundup.com.

FEBRUARY 2015

Tuesday, February 17

JANUARY 2015 n National Mortgage Professional Magazine n

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M O R T G A G E

Florida Association of Mortgage Professionals (FAMP) Broward Chapter 2015 Annual Trade Show Bonaventure Resort Conference Center and Spa 250 Racquet Club Road Weston, Fla. For more information, call (954) 986-0808 or e-mail admin@browardfamp.org. MARCH 2015

Sunday-Thursday, March 8-12 32nd Annual Regional Conference of MBAs Trump Taj Mahal Casino Resort 1000 Boardwalk Atlantic City, N.J. For more information, call (732) 596-1619 or visit www.mbanj.com.

Wednesday-Friday, March 18-20 American Land Title Association (ALTA) 2015 Business Strategies Conference Sheraton Philadelphia Downtown 201 North 17th Street Philadelphia For more information, call (202) 296-3671, visit www.alta.org or e-mail service@alta.org.

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

Monday-Wednesday, May 18-20

OCTOBER 2015

American Land Title Association 2015 Federal Conference and Lobby Day Mandarin Oriental Hotel 1330 Maryland Avenue SW Washington, D.C. For more information, call (202) 296-3671, visit www.alta.org or e-mail service@alta.org.

Wednesday-Friday, October 7-10

JUNE 2015

Sunday-Tuesday, April 12-14

Friday, June 5

NAMB 2015 Legislative & Regulatory Conference Hyatt Place Hotel 33 New York Avenue NE Washington, D.C. For more information, call (972) 758-1151 or visit www.namb.org.

2015 Southwest Mortgage Fest Embassy Suites Hotel & Spa 1000 Woodward Place Northeast Albuquerque, N.M. For more information, call (860) 719-1991, e-mail info@agilityresourcesgroup.com or visit www.swmortgagefest.com.

Wednesday, April 29

Monday-Wednesday, June 22-24

2015 Midwest Mortgage Matchmaker Conference Ameristar Casino Resort & Spa 1 Ameristar Boulevard Saint Charles, Mo. For more information, call (314) 690-1504, e-mail information@mamp.biz or visit www.mortgage-matchmaker.com.

Ultimate Mortgage Expo 2015 The Hotel Monteleone 214 Royal Street New Orleans, La. For more information, call (860) 719-1991, e-mail info@agilityresourcesgroup.com or visit www.ultimatemortgageexpo.com.

MAY 2015

AUGUST 2015

Tuesday, May 12

Thursday-Friday, August 20-21

2015 Great Northwest Mortgage Expo Crowne Plaza Downtown Portland 1441 NE 2nd Avenue Portland, Ore. For more information, call (503) 567-9326, e-mail info@oamponline.com or visit www.greatnorthwestexpo.com.

Louisiana Mortgage Lenders Association (LMLA) 2015 Education Conference The Hilton New Orleans Riverside Hotel 2 Poydras Street New Orleans, La. For more information, call (225) 590-5722 or visit www.lmla.com.

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

American Land Title Association 2015 Annual Convention Westin Copley Place Boston 10 Huntington Avenue Boston, Mass. For more information, call (202) 296-3671, visit www.alta.org or e-mail service@alta.org.

Saturday-Monday, October 17-19 2015 NAMB National Conference Luxor Resort and Hotel 3900 South Las Vegas Boulevard Las Vegas For more information, call (860) 719-1991, e-mail info@agilityresourcesgroup.com or visit www.nambnational.com.

Sunday-Wednesday, October 18-21 Mortgage Bankers Association Annual Convention and Expo 2015 San Diego Convention Center 111 West Harbor Drive San Diego, Calif. For more information, call (800) 793-6222 or visit www.mortgagebankers.org.

heard on the street continued from page 44

The National National Association Association of of Pr ofessional M ortgage Women Women is a Professional Mortgage co mmunity of of individuals individuals wi thin tthe he community within mortgag e industry industry that mortgage that focuses fo ocuses on b usiness g rowth through business growth through iinnovation, nnovation, co llaboration and collaboration and partnership. partnership. NA PMW will will b ring togeth er a d ynamic NAPMW bring together dynamic arr ay of industry industry professionals, array proffe essionals, ma rketing and technology speakers to marketing technology speakers R Echarge your your business 015! REcharge 2015! business in in 2

MONDORO

ww w.napmw.org www.napmw.org 80 0.827.3034 800.827.3034

n National Mortgage Professional Magazine n JANUARY 2015

CORR

2015 with NAPMW

Leap forward forward w with ith NAPMW NAPMW iinto nto a new yyear ear and new potential. potential.

l HomeBridge Financial Services Inc. is continuing its emphasis on l Veteran mortgage professional John Midwest expansion with the openMondoro has joined Mortgage ing of a new office in the Chicago Network Inc. as a sales manager suburb of Naperville, Ill., to be led where he will be responsible for manby Branch Manager Matt McInerney. aging sales and serving borrowers and homeowners throughout the New Jersey area. l Visionet Systems Inc. has announced that it has appointed Norman Gottschalk to the position of chief technology officer for its Lender Services Division. l REMN Wholesale continues its expanl Ellie Mae Inc. has announced that sion with the addition of Felix Ortiz as its Board of Directors has appointed regional sales manager, complimentJonathan Corr as chief executive ing Christine Lacy and Ann officer and a member of the board Stockberger, REMN Wholesale’s existof directors, effective Feb. 1. Sig ing regional sales managers for Anderman, Ellie Mae’s CEO since Southern California. founding the company in 1997, will l LenderLive Network Inc. has continue to serve on its board of announced that Mark Hughes has directors as executive chairman. been named president of the company’s Due Diligence Division. LenderLive has also announced that Lorie Helms has joined the firm as chief information officer, managing LenderLive’s IT infrastructure, network and data security and will provide oversight for corporate and divisional application development. l Guild Mortgage Company has l The Mortgage Bankers Association announced the opening of a new continued on page 68 retail branch in Healdsburg, Calif. as MARTINDALE

REcharge!! Get ready for

NationalMortgageProfessional.com

MCINERNEY

BROWN

LEVY

need to create a local operations center part of the company’s continued to better serve customers as it added expansion throughout the West, to offices and loan volume grew. Its Nevada be led by new Branch Manager branches closed 2,542 loans totaling Suzanne Martindale. $502,686,882 in 2014, a record. Guild selected Reno as a central location to meet the fulfillment needs of the area’s borrowers. Kevin Green has been named operations manager of the center and will oversee a staff of 16 and the underwriting and funding functions. Green has more than 20 years of experience in the mortgage l Rich Levy has joined Mortgage industry in the Reno area. Before joining Returns as director of sales and is the Guild in June 2013 as branch operations newest member of the executive manager, he was loan-processing managteam, bringing more than 20 years er for iMortgage.com in Reno. Prior to of success in business development, iMortgage, he was fulfillment team sales management, building sales leader and assistant vice president of teams, and improving sales processBank of America Home Loans in Reno. es to the Mortgage Returns team. “I joined Guild Mortgage because of the opportunity to help grow a local operations team to be the best in the region,” Green said. “Guild saw a bright future in Northern Nevada. We have an initial staff of 16, plan to go to 20 shortly to better serve our customers across the state and are looking forward to future growth.” l Michael R. Brown, president of CIS, Mortgage Professionals has been named 2015 president of to Watch the National Consumer Reporting Association (NCRA).

heard on the street continued from page 67

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l l

(MBA), parent corporation of the Mortgage Industry Standards Maintenance Organization (MISMO), has appointed Bill Beckmann, Kyung Cho-Miller, Michelle Korsmo, and Joe Tyrrell to the MISMO Board of Directors. Caliber Home Loans Inc. has announced that Kevin A. Ginsburg has joined the company as regional vice president of the Central and South Texas region. NMI Holdings Inc. has announced that Jay Sherwood will be promoted to president of NMI Holdings Inc. and its subsidiary company, National Mortgage Insurance Corporation (National MI). Glenn Farrell, a 33-year veteran of accounting and consulting firm KPMG LLP, has been named NationalMI’s new chief financial officer. Current NationalMI President Bradley Shuster will remain chief executive officer and chairman of the board of NMI Holdings Inc. Prospect Holding Company LLC, and its subsidiary, Prospect Mortgage LLC, has announced the appointment of Joseph J. Grassi III as executive vice president and general counsel. David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA), has announced the promotion of Rick Hill, a staff member in the Research and Industry Technology Group, to the position of vice president of industry technology. The MBA has also announced that Jamie Korus, CMB, president and principal of Alliance Financial Resources LLC, was appointed chairman of the Mortgage Bankers Association Political Action Committee (MORPAC) for the 2015-2016 political cycle, by Bill Cosgrove, MBA chairman and CEO of Union Home Mortgage. Korus succeeds Kurt Pfotenhauer who served as MORPAC Chairman for the 2013-2014 election cycle. Mortgage Guaranty Insurance Corporation (MGIC), the principal subsidiary of MGIC Investment Corporation, has hired Sean Dilweg as senior vice president of government relations, where he will lead MGIC’s Washington, D.C. government relations activities relating to housing policy to help shape the discussion of the issues impacting the private mortgage insurance (PMI) industry. LRES has named Candice Merriweather vice president, national sales manager. In this role, Merriweather’s responsibilities focus on recruiting and training sales associates, meeting sales goals of profitable revenue and developing and cultivating client relationships. ARMCO–ACES Risk Management has named Phil McCall as chief operating officer. Capsilon has announced that

Ramarao Velpuri has joined the Capsilon leadership team as vice president of engineering where he will be responsible for Capsilon’s global engineering team and delivering innovative solutions that change the way mortgage lenders do business. l Guaranteed Rate has named Cliff Theriault as regional manager, based in the company’s Schaumburg, Ill. office. Theriault will support the company’s regional managers nationwide in their efforts to recruit top loan originators and will be responsible for sales leadership and mentoring originators, drawing on his more than 40 years of experience in the mortgage industry. l Churchill Mortgage continues to expand its team with 15 new employees across its branches in Georgia, Texas, California, Michigan, South Carolina, Tennessee and Virginia, adding nearly 200 years of industry experience. In Brentwood, Tenn., Churchill has added Jearlyn Hooker and KaLynn Jenkins as customer care specialists. Also in Tennessee, the lender’s Chattanooga branch welcomed Melissa Thompson as a home loan specialist. Lorna Gamboa-Tankersley, Tiffany Paul, Scott Mosher and Richard Izaguirre join the California branch as home loan assistants with 59 years of combined experience. In Houston, Texas, Churchill adds Christina Carillo, Gabe Cardenas and Richard McClure as home loan specialists with 21 years of shared expertise. Churchill welcomes Joanne VanDyke as a home loan assistant, Lisa Crawford as a home loan specialist and Joan Sosaas a processor for the lender’s Grand Rapids, Mich., Greenwood, S.C., and Herndon, Va. branches, respectively. The lender also adds Lori Wright to its Atlanta branch as a customer care specialist with five years of experience and Cora Hall as an administrative assistant to its Lansing, Mich. branch.

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

Managing Two Key Operational Risks for Mortgage Lenders By Jim Deitch In the past several years, mortgage lenders have focused on the development and implementation of risk management policies, procedures, programs and practices. Yet, regulators seem to cite two areas where operational risks still constitute frequent regulator critique.

Effective risk management assumes that lender IT systems will be penetrated. A cybersecurity program must address how will penetration be detected, what is the security incident response, and how can the lender’s IT systems be designed to minimize movement laterally across lender systems in the event of penetration. Finally, effective risk management assumes that the lender has already been penetrated and an Advanced

Persistent Threat (APT) is lurking somewhere within the IT infrastructure. APTs include malware that lies dormant, awaiting the command to open a back door, or malware that slowly, but unobtrusively, infiltrates valuable and confidential customer data over time. While these two operation risks may seem very different, they both are high profile regulatory initiatives and both have “headline risk” and enforcement risk that senior executives should manage. James M. Deitch is chief executive officer and co-founder of Teraverde. He has successfully implemented residential lending strategies in his banks, and served on the Mortgage Bankers Association Board of Governors for three terms representing a community bank lender in the MBA. He may be reached by phone at (855) 374-TVMA. 69

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n National Mortgage Professional Magazine n JANUARY 2015

l IT and Cybersecurity: Another area

ous vendor management. It includes designing and testing the segregation of system access and segregation of data to limit damage if an unauthorized intruder gains access to a lender network or system. The arc of risk in cybersecurity encompasses all lender employees, trusted vendors and all of the elements of the lender’s IT systems.

NationalMortgageProfessional.com

l Lender Secrecy/Anti-Money Laundering (BSA/AML): BSA/AML is a regulatory risk that requires careful and extensive planning and governance by every lender. Executives should ask what types of customer AML risk is my lender willing to take? Has the lender’s risk management function managed these risks sufficiently to mitigate the risks the lender is willing to accept? Have the lender’s systems and BSA/AML automated tools been integrated and calibrated to detect and manage the specific types of customer risk the lender’s business plan accepts? Has the lender validated and tested the BSA/AML automated tool calibration and effectiveness vis-avis the lender’s consumer and business customer profiles? Oftentimes, lender executives are criticized over lack of initial and periodic validation of the BSA/AML monitoring tools and clearance of exceptions. Thoughtful consideration of the specific risks that a lender undertakes with its customer base, and effective monitoring of these risks, can avoid regulatory criticism and enforcement action in the BSA/AML areas. BSA/AML automated tools must be calibrated to specific customer threshold limits to be effective. Periodic testing and validation of these limits and system effectiveness should be considered in view of “false positives” and “false negatives.” Self-initiated model review and back testing of BSA/AML monitoring tools can go a long way in effective governance and avoidance of exam findings and enforcement actions, according to a managing partner at a national law firm that assists lenders with enforcement actions in BSA/AML. Ineffective AML monitoring can lead to enforcement action, civil money penalties or worse.

of operational risk is cybersecurity, cyber-attacks, customer data breaches, and resulting damage to one’s reputation and financial losses. Don’t think a “clean” penetration test means you are not at risk. Lender senior executives make three common mistakes regarding cybersecurity: The senior executive lets the IT manager handle cybersecurity testing; the executive team does not view IT security in global terms that include employee and vendor compliance with IT security policies; and the senior executive does not demand a comprehensive and frequently tested Security Incident Response policy to guide their lender’s reaction to possible security incidents. Another common mistake is to have the wrong kind of cyber insurance. Companies find out that coverage can be denied because security procedures listed on the insurance application were not meticulously followed or were ineffective. Some policies do not cover the loss of revenue arising from a breach, or do not fully cover remediation costs. Lender executives should remove responsibility for cybersecurity testing from the chief information officer. Independent testing is a fundamental security control, and cyber testing should be rotated among third-party firms periodically. IT security testing should emulate realistic threats and should not be confined to simply probing the firewall. Most mortgage bankers have laptops in the field and at production offices. Loan officers can also be sources of vulnerability, as they often receive information from customers via e-mail. Poor security can introduce malware into the lender’s systems. Effective cybersecurity assumes that a non-authorized user will gain access. Effective risk management of cybersecurity includes IT security controls that prohibit thumb drive and other device installation on lender computers. It includes employee security policies that highlight the threats of clicking on phishing e-mails, verifying the security of WiFi networks and frequent training and testing of human frailty exploits: Phishing, poor physical control of lender premises and careful and continu-

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APPRAISAL MANAGEMENT COMPANY COMPLIANCE CONSULTANTS

JANUARY 2015 n National Mortgage Professional Magazine n

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StreetLinks Lender Solutions (800) 778-4920 www.streetlinks.com sales@streetlinks.com StreetLinks Lender Solutions provides an innovative and comprehensive suite of valuation and service solutions used by lenders, servicers and appraisers nationwide to improve everyday business operations. StreetLinks industry-leading products include LenderPlus™ full-service appraisal management, LenderX™ lender-executed appraisal management software and SCORe™ appraisal reviews and a series of valuation analysis tools for services. Our commitment to quality and service, embodied by our partnership approach to clients and appraisers, continues to set us apart as the nation’s premier lending solutions partner. For more information, visit www.streetlinks.com.

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

AUDIT DEFENSE AND RESPONSE

CFPB Audit Preparation and Response Is your company CFPB compliant? Could your company survive a CFPB Audit? Do you even understand how many policies and procedures have been promulgated, and that each and every one you miss means ever increasing fines and reporting issues? The CFPB has stated they intend to audit every mortgage company in America. Are you ready for that? With our program we provide your CFPB manuals, customized policies, and procedures. With the Audit and MLO Package you receive 6 months of regulatory question support. If we also provide the Governance and Training Packages, you receive 12 months support. Our Expert is a 24 year veteran of the Mortgage Industry. He has ten years of experience as a Legal and Compliance Officer. He is admitted to the California Bar and five Federal Districts. He has managed many situations involving federal or state agency audits. He learned from experience the nuances of agency actions and knows how to prevent problems or defend against such situations.

Contact Expert Services at (800) 557-6580. Or you may email 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 situation. All fact patterns are different so the results will vary. No guarantees are expressed or implied. The best time to contact us is when you receive notice of a potential problem, not after.

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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.

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United Wholesale Mortgage 800-981-8898 www.uwm.com Contac t: info@afr wholesale.com

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UWM has a full set of mortgage products to meet all of your lending needs with Conventional, FHA, USDA (Rural Development), VA, Jumbo, HARP 2.0 and DU Refi Plus. With UWMâ&#x20AC;&#x2122;s ELITE program, you will receive the most aggressive conventional rates and pricing in the industry for your elite borrowers! Discover Lending Made Easy with United Wholesale Mortgage!

n National Mortgage Professional Magazine n JANUARY 2015

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TagQuest www.myharpleads.com TagQuest.com 888-717-8980

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.

JANUARY 2015 n National Mortgage Professional Magazine n NationalMortgageProfessional.com

www.BrokersComplianceGroup.com

WE BUILT OUR TEAM TO MOVE YOUR BUSINESS FORWARD FROM THE GROUND UP We restructured our production and support staffs to deliver more responsive file processing and quicker suspended item resolution. We strive to offer personalized service to each and every one of our lending partners.

AFR Wholesale is committed to improving the lender experience and building lasting relationships through exceptional service, which is why we made significant changes that provide you consistent service from a reliable and dedicated team.

WITH YOU IN MIND Responding to the needs of our clients is what earns us trusted business. Our improved structure means you spend less time working in-process files and more time building your business and gaining new clients.

JOIN OUR TEAM BY VISITING AFRWHOLESALE.COM OR CALL US AT 877-552-8737 Lender NMLS 2826. AFR Wholesale is a division of American Financial Resources, Inc. - AFR is a nationwide wholesale and correspondent lender. This information is provided to assist business professionals only and is not an advertisement extended to the consumer as defined by Section 226.2 Regulation Z. - EHL / EOE - 9 Sylvan Way, Parsippany, NJ 07054 - www.afrwholesale.com