National Mortgage Professional Magazine January 2018 by ambizmedia

MORTGAGE NEWS NETWORK INC. 1220 WANTAGH AVENUE WANTAGH, NEW YORK 11793

PRESORTED STANDARD U.S. POSTAGE PAID MORTGAGE NEWS NETWORK INC.

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Interest Only Option

Exceptions

Non-Warrantable Condos

1-4 Units

Wholesale-Correspondent

www.GreenBoxLoans.com (800) 600-9198 Wholesaleinfo@greenboxloans.com

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

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n National Mortgage Professional Magazine n JANUARY 2018

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NationalMortgageProfessional.com

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

table of

N A T I O N A L

National Mortgage Professional Magazine Presents Top Mortgage Employers

J A N U A R Y

36 The Mortgage Godfather: Why It’s Important to Clean Your Teeth … Often! By Ralph LoVuolo Sr.

2 0 1 8

M O R T G

V O L U

A SPECIAL FOCUS ON “BRANCHING OUT: EMPLOYMENT & GROWTH STRATEGIES”

T C

Grooming Leaders From Within By Patty Arvielo ............................60

The Perfect Fit By Kevin Allen ..........................................................64

Preparing for Spring? Make Training and Recruiting a Priority By Kevin Watson ................................................................................66

Defining Your Company’s Culture By Stacy Mohr ..........................68

Non-QM Lending Is Key to Relevance of Mortgage Professionals By John Wise ..............................................................70

54 HMDA+: The Next Big Fair Lending Threat on the Horizon By Alan Bercovitz

Workplace (Mis)Conduct By Eric “NOT related to Harvey” Weinstein ............................................................................................72

Finding the Right (Cultural) Fit By Helen Brown ..............................74

Whose Grass Is the Greenest? By Shirleen Von Hoffmann ..............76

FEATURES

T i

Non-QM Lending to Soar in 2018 By Tom Hutchens..........................8 The Elite Performer: Fixed or Growth Mindset By Andy W. Harris, CRMS ....................................................................8

Recruiting, Training and Mentoring Corner: More Than Just Interviewing By Dave Hershman ..............................................10

New FHA and VA Loan Limits for 2018 By Gavin T. Ales ................16

Cash In on the New Year..................................................................18

The WOW Benchmark By Scott Harris ..............................................20

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

OrigiNation: Acquisitions & Mergers By Andy W. Harris, CRMS ....38

90 The Insight and Knowledge Mortgage Professionals Need to Succeed in 2018 By Greg Holmes

Compliance Matters: Anti-Money Laundering Program–Some Key Questions By Jonathan Foxx, Ph.D., MBA ................................42

V I S I T Company

Web Site

O U R

A D Page

Accio Data ........................................................ www.ezcbsv.com ..........................................................70 Angel Oak Mortgage Solutions ............................ www.angeloakms.com ..............................62 & Back Cover Athas Capital Group .......................................... www.athascapital.com ....................................................9 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................17 Caliber Home Loans.............................................. www.caliberwholesale.com ..............................................69 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................39 & 76 Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................73 Class Appraisal .................................................. www.classappraisal.com ................................................13 DocMagic .......................................................... www.docmagic.com ........................................................7

94 Plagiarism vs. Originality By Paul Lucido

FAMP-Broward Chapter ...................................... www.browardfamp.org ..................................................92 Flagstar Bank .................................................... www.flagstar.com/why ....................................................5 Greenbox Loans, Inc........................................... www.greenboxloans.com ..............................................IFC Jet Direct Mortgage ............................................ www.jetdirectmortgage.com ..........................................88 Keystone Alliance Mortgage ................................ www.movement.com ....................................................78

Lykken On Lending ............................................ www.lykkenonlending.com ............................................37

MBA-NJ/NJAMB .................................................. www.mbanj.com ..........................................................89

MBS Highway .................................................... www.mbshighway.com/MNN ..........................................85

of contents

R T G A G E

O L U M E

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

1 0

N U M B E R

Tonyâ&#x20AC;&#x2122;s Corner: A Message From NAMMBA Founder & CEO J. Tony Thompson III, CMB ....................................................44

Drilling Down on Negative Equity Issues By Pam Marron ..............46 nmpU Campus Talk: The Numbers Game By Ron Vaimberg ..........48 How My Lawn Taught Me an Important Lesson About Loans By Brian Kent ....................................................................................50 The Mortgage Epidemic Nobodyâ&#x20AC;&#x2122;s Talking About By Thomas Cronkright II Esq. & Lawrence Duthler Esq. ....................56 Is the Digital Hype Machine Losing Steam? By Rajesh Bhat ..........80 The Age Old Question Wholesale or Retail? By Kimber White, CRMS ....................................................................83 The Money Source and Endeavor America to Rebrand as TMS ....82 Scenes From the 2017 California Holiday Networking Party ........86 The Top Three Skills Mortgage Pros Need in 2018 By Bubba Mills ..................................................................................96 The Three Words Every Originator Must Know to Succeed in 2018 By Brian Sacks ......................................................................98

COLUMNS New to Market...................................................................................12 News Flash: January 2018 ................................................................14 Heard on the Street...........................................................................40 Outstanding Places to Work ...........................................................100

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

NMP Calendar of Events .................................................................101 NMP Resource Registry..................................................................102

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

Web Site

Page

Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................52 & 53 NAMB+ ............................................................ www.nambplus.com ......................................................27 NAMBPAC.......................................................... www.namb.org ..............................................................21 NAMMBA .......................................................... www.nammba.org ........................................................77 NAPMW ............................................................ www.napmw.org ....................................................26 & 88 NAWRB ............................................................ www.nawrb.com ............................................................75 New American Funding ...................................... www.newamericanfunding.com ....................................104 NMP U .............................................................. www.nmpucoaching.com ..................................63, 71 & 93 NRMLA.............................................................. www.nrmlaonline.org ....................................................92 OSI Express........................................................ www.osiexpress.com/mlslink ............................................1 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................15, 65 & Inside Back Cover REMN................................................................ www.remnwholesale.com ..............................................67 ResMac, Inc. ...................................................... www.resmacb2b.com ....................................................11 TagQuest .......................................................... www.tagquest.com ........................................................79 The Bond Exchange............................................ www.thebondexchange.com ..........................................59 The Money Source, Inc. .................................... www.wholesale.themoneysource.com ..........41, 43, 45 & 47

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

To submit your nomination, go to

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

JANUARY 2018 Volume 10 • Number 1

FROM THE

Growing yourself in 2018

publisher’s desk

Now that we are a few weeks into 2018, I am hoping those resolutions you made and 1220 Wantagh Avenue • Wantagh, NY 11793-2202 intended to stick to at midnight Dec. 31, 2017 are still being upheld. By now, most gyms Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com have once again become virtual ghost towns, maybe those snacks you swore off of have STAFF crept back into the cupboard and with the Super Bowl around the corner, would one more Eric C. Peck Joel M. Berman wing hurt my diet? Editor-in-Chief Publisher - CEO (516) 409-5555, ext. 312 (516) 409-5555, ext. 310 To those who have stood firm and upheld the personal commitments made to better ericp@mortgagenewsnetwork.com joel@mortgagenewsnetwork.com themselves in 2018, congratulations. How many of us took the time to make a personal Joey Arendt Beverly Bolnick commitment to the betterment of our business? How many felt that starting 2018 off with a Art Director VP-Sales & Marketing (516) 409-5555, ext. 323 (516) 409-5555, ext. 316 fresh start included a complete overhaul, even in their day-to-day business activities? For joeya@mortgagenewsnetwork.com beverlyb@mortgagenewsnetwork.com those who made this resolution to the betterment of their career and work life, this month Scott Koondel Phil Hall VP of Operations Managing Editor we are focusing on “Branching Out: Employment & Growth Opportunities.” We have (516) 409-5555, ext. 324 (516) 409-5555, ext. 312 scottk@mortgagenewsnetwork.com philh@mortgagenewsnetwork.com assembled a slate of authors who are looking to give a jolt to your business life. Kicking things off, we have Patty Arvielo, President of New American Funding, focusing Richard Zyta Francine Miller Social Media Ambassador Advertising Coordinator on developing your company’s future from within in her article “Grooming Leaders From (516) 409-5555 (516) 409-5555, ext. 301 richardz@mortgagenewsnetwork.com francinem@mortgagenewsnetwork.com Within” on page 60. Patty’s article details that the person to take your firm to the next level Rick Grant Dylan Pollock into the future may not come from some online job board posting, but may be right under Special Reports Editor Administrative Assistant (570) 497-1026 (direct) (516) 409-5555, ext. 314 your nose. (516) 409-555, ext. 311 dylanp@mortgagenewsnetwork.com rickg@mortgagenewsnetwork.com On the topic of growth, John Wise, Business Development Manager for Angel Oak Mortgage Solutions, explains that diversifying your product line with niche offerings such as ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact non-QM products could be key to your growth in 2018. See John’s reasoning behind the VP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail beverlyb@mortgagepush for non-QM in the next year beginning on page 70. newsnetwork.com. In “Defining Your Company’s Culture” on page 68, Stacy Mohr, SVP of Capital Markets ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck for Mountain West Financial, questions “do you really know your company’s culture?” at (516) 409-5555, ext. 312 or e-mail ericp@mortgagenewsnetwork.com. The deadline for submissions is the first of the month prior to the target issue. Stacy discusses what attracts new hires to you and your company, and what a simple poll SUBSCRIPTIONS of your current employees can do to strengthen your own corporate culture. To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@mortgageOn page 64, Kevin Allen, SVP–National Sales Development for Waterstone Mortgage, newsnetwork.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. discusses how to develop a flawless hiring and onboarding process in his article “The Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the Perfect Fit.” While time-consuming and painstaking, your onboarding of new employees, if authors alone and do not imply the opinion or endorsement of Mortgage News Network Inc., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National done right, can yield positive results across the board for years to come. Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) While we begin to cater to the Millennial marketplace, bringing in the Millennial employee and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activbecomes a crucial step as we begin to train talent and expand operations for the long term. ities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement Kevin Watson, Manager of Churchill Mortgage’s Middle Tennessee branch, looks at of the product and/or services by Mortgage News Network Inc., NAMB, NAPMW, NCRA, and other state mortgage trade associations. properly training talent in his article “Preparing for Spring? Make Training and Recruiting a 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 Priority” on page 66. compliance aspects of advertisers, products or services and/or the editorial content contained in Mortgage Circling back to company culture, Helen Brown, Director of Human Resources for Inlanta News Network Inc. publications. National Mortgage Professional Magazine and Mortgage News Network Inc. reserve the right to edit, reject and/or postpone the publication of any articles, information or data. Mortgage, explains that corporate culture should be “distinct from other companies rather than mimicked.” See Helen’s article “Finding the Right (Cultural) Fit” on page 74 and learn how an authentic and unique corporate culture will set you apart from the competition and attract the industry’s top producers. Eric “NOT related to Harvey” Weinstein brings his light, yet serious approach to professionalism in his article “Workplace (Mis)Conduct” on page 72. In light of the rash of Hollywood scandals where the abuse of power by top execs has come to light, as Eric phrases it, “a few seconds of uncomfortable laughter at a blue remark is not worth the risk that it might possibly be taken the wrong way.” Be wise, be smart and as Eric states, “pretend there is a filter between your brain and your mouth.” Closing out this month’s Special Focus, Shirleen Von Hoffmann, President and Sales Coach of Home Builders Edge, asks the age-old question “Is the grass always greener on the other side?” in her article on page 76. Shirleen explains that the top producers do not jump from company to company, and if you take proper care of these top producers, your company will reap the benefits for years to come. What exactly does it take to become a top employer? Where are the places where the top producers flock to? Is it corporate culture, leadership, marketing, compensation? The answers can vary, but this month beginning on page 28, we spotlight “America’s Top Mortgage Employers.” This listing of national and regional lenders, service providers and wholesalers will key you in on exactly who is attracting the best-in-class in the industry, highlighting what type of person will excel at these companies. Last but not least, I wanted to mention a new endeavor that NAMB is embarking on. The 2018 NAMB Focus: Sales and Marketing Conference will be held Thursday-Saturday, Feb. 15-17 at the Hilton Sandestin Beach Golf Resort & Spa in Miramar Beach, Fla. This inaugural event will feature sales and marketing-focused breakout sessions, a trade show, along with plenty of opportunities to network and share ideas with your fellow mortgage professionals, all amid the backdrop of sunny Florida! NAMB not only provides you with an outlet to jump start your year through self-improvement, but provides a nice break from the arctic cold that has swept the nation over the past few weeks. See page 24 for more information or visit NAMB.org. It’s never too early to get back on track! If you have let those New Year’s Resolutions fall by the wayside, let this issue be an inspiration to re-focus, re-energize and realize the vast amount of opportunities that await you in the mortgage marketplace. Start 2018 off right, make that investment in yourself and in your career, and make 2018 a year to remember. Thank you again for your support of National Mortgage Professional Magazine. Sincerely, Joel M. Berman, Publisher-CEO NMP Media Corp. Joel@MortgageNewsNetwork.com

CORRESPONDENT · WHOLESALE · WAREHOUSE · SUBSERVICING

Well-crafted mortgage lending

requires a high-tech toolbox.

flagstar.com/why

Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change. The information provided herein is for dissemination to and for real estate and ﬁnancial business entities only, and is not an advertisement for the extension of credit to customers. 1Source: Inside Mortgage (Q3 2017) 2 Source: FHA Neighborhood Watch (Q3 2017)

n National Mortgage Professional Magazine n JANUARY 2018

Discover more advantages at:

NationalMortgageProfessional.com

For the last thirty years, Flagstar Bank has been an industry-leading mortgage lender. We are a top 10 correspondent investor1 and the #1 FHA wholesale lender2 in the country. Put our decades of experience to work for you today.

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

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

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

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

B O A R D

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

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

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

D I R E C T O R S

Linda McCoy, CMRS Linda.McCoy@NAMB.org

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

Wayne King, CMC, CRMS Wayne.King@NAMB.org

Michael DeSantis Mike.DeSantis@NAMB.org

George Burkely, CRMS George.Burkley@NAMB.org

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

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

Olga Kucerak, CRMS Olga.Kucerak@NAMB.org

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

2017-2018 NAPMW NATIONAL BOARD OF DIRECTORS

JANUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

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

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

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

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

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

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

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

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

2017-2018 BOARD OF DIRECTORS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n JANUARY 2018

Non-QM Lending to Soar in 2018 By Tom Hutchens

JANUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

n 2018, mortgage industry analysts predict non-QM mortgage volume will double or triple. As refinancing stalls, home prices rise and inventory tightens, these high-quality alternatives to agency loans will become more widely accepted by lenders and financial institutions. To become experts in marketing and managing non-QM loans, mortgage professionals must grasp the different natures of the products and the customers, in comparison to the marketplace for conventional loans. Although non-QM lending has grown from nothing to a $5 billion marketplace since 2014, the potential is untapped. We believe annual non-QM lending can exceed $100 billion. We have a critical mass of underserved consumers. Economic conditions suggest that originators should seek them out if they are to increase production. The Mortgage Bankers Association (MBA) forecasts that total mortgage originations will decline from $1.7 to $1.6 trillion in 2017. Originators new to non-QM lending must understand that the products themselves and the borrowers are quite different from agency ones. Whereas agency loan borrowers prove their ability-to-repay (ATR) according to strict standardized criteria (especially employment, income and credit history), lenders assess—and determine rates for—non-QM applicants according to various benchmarks. For example, we approve a retiree or self-employed individual who cannot qualify for an agency loan based on bank statements or other documentation verifying ATR. Identifying and approaching potential customers requires different tactics. Because many lenders do not market nonQM loans, excellent prospects are often unaware that solutions are readily available, often with rates that vary little from conventional loans. To offset predicted declines in overall production, lenders should reach out to non-QM leaders who will help them learn about the marketplace and offer valuable counsel. Angel Oak has a nationwide network of account executives in place to do just that. Although this year’s prospects for non-QM lending are bright, the market is still in its infancy. Originators, wholesalers, correspondents and investors who are entering the space should appreciate that they are pioneers even though non-QM loans have been around since 2014. It has taken that time for Angel Oak and others to demonstrate that non-QM loans are reliable products offering distinct benefits to creditworthy borrowers and high performance in both the wholesale and secondary markets. I am proud to be at the forefront of this industry. After agency lending rules excluded millions of successful Americans, non-QM entrepreneurs stepped in to create new products and the infrastructure needed to support them. We are ready to evolve into a mature marketplace that can be a positive force in the U.S. economy.

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

SPONSORED EDITORIAL

investment income, and purchasing power for trading up to a new home–all in a clear, easy-to-understand format. Homeowners can connect to their lender for more information, resulting in a powerful client engagement tool. Additionally, the homeowner can share the application with friends and family–so they can also receive personalized reports, generating more potential leads for lenders. “Homebot offers an affordable, automated and cutting-edge mobile tool that helps lenders re-engage their clients after a loan has closed,” said Black Knight Data & Analytics Group Executive and President Kevin Coop. “The solution, which helps support borrower retention, draws from Black Knight’s comprehensive repository of property and mortgage data, and applies advanced analytics, including our automated valuation models. Lenders use the Homebot solution to deliver reliable, timely and customized wealth-building information to consumers and strengthen their relationships with them.” ComplianceAnalyzer With TRID Monitor Integrates With Black Knight’s LoanSphere Empower LOS

ComplianceEase has announced that the integration of its flagship compliance solution, ComplianceAnalyzer, with the LoanSphere Empower loan origination system (LOS) has been expanded to include the addition of TRID Monitor. The LoanSphere Empower system is offered by Black Knight, a provider of integrated software, data and analytics solutions. The direct integration, along with Black Knight’s orchestration engine automation, allows Empower software clients systematically audit loans for regulatory compliance using ComplianceAnalyzer with TRID

Monitor—without user intervention or ever leaving the LOS. ComplianceAnalyzer with TRID Monitor is available to all lenders using the Empower base system. ComplianceAnalyzer with TRID Monitor can check for any changes in terms and fees throughout the origination and closing processes; audit tolerance across all disclosures and changed circumstances; and track post-consummation disclosures, including those with a cure to the borrower. In addition, ComplianceAnalyzer with TRID Monitor performs audits for federal high-cost and higher-priced loan regulations, the Secure and Fair Enforcement (SAFE) for Mortgage Licensing Act, state high-cost and anti-predatory regulations, and state licensebased consumer lending laws and regulations. The solution can also perform audits for compliance guidelines from secondary market investors and government-sponsored enterprises. “We are continually focused on providing our clients with the most comprehensive support and automated workflow solutions to support their compliance efforts,” said Rich Gagliano, President of the Originations Technologies Division for Black Knight. “The Empower software’s base integration with ComplianceAnalyzer and the recent expansion to include the TRID Monitor enables our clients to seamlessly interact with these products from Empower.” Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

Dear NAMBPAC Contributors, I want to take this opportunity to recognize and thank everyone who so generously supported NAMBPAC in 2017! Without each of you stepping up to the plate last year to support our industry NAMB would not be able to maintain the strong and inﬂuential voice that it has in Washington, DC. On behalf of NAMB, and the tens of thousands of mortgage professionals nationwide who NAMB represent, I extend a very sincere THANK YOU, and I wish all of you a safe, happy and successful 2018!

For more information about NAMBPAC or NAMB’s legislative advocacy efforts, please feel free to contact 2018 NAMBPAC Chair Wayne King, NAMB Government Affairs Committee Chair Chris Bettis, or visit www.namb.org. Sincerely, Allen Beydoun 2017 NAMBPAC Chair NAMB@NAMB.ORG

Thank You to Our 2017 NAMBPAC Contributors!

Platinum-level Contributors ($2,500 - $4,999 annual contribution) Thomas Black ..................................TX FlagStar Bank Federal PAC ..............MI Wayne King, CMC, CRMS ................TX Fred Kreger, CMC ............................CA

Allen Beydoun ..................................MI George Duarte, CMC ........................CA

Olga Kucerak, CRMS ........................TX Paul Marsh, CMC, CRMS ..................TX Linda McCoy, CRMS ........................AL Matt Oliver ......................................AZ Valerie Saunders, CRMS ..................FL Lisa Severseike ................................IA Kimber White, CRMS ........................FL Silver-level Contributors ($500 - $999 annual contribution) Cheryl Mehe’ula ..............................CA Joe Ashton ......................................AZ Jayne Bail ......................................CO Karen Bates ....................................CA Rick Bettencourt, CRMS ..................MA Audrey Boissonou ............................CA Dawn Cychner ................................CA Dale Di Gennaro ..............................CA Tiare Fullerton ..................................HI

Helga James....................................AL Manny Morales................................CA Vernon Morrison ..............................OH Jim Nabors, CMC, CRMS ................OH Christopher Wagner ........................OR Cynthia Wingo..................................CA Ziaomin Wu......................................TX

Damion Hughes ..............................TX Everett Ives ......................................TX Jon Kaempfer ..................................CA Jason Kauffman ..............................CO Darlene Kowalczyk ..........................FL Steven Lang ....................................CA Cathy Lee ........................................HI Mark Luciani....................................CA

Sustaining Contributors (up to $499 annual contribution)

Lisa Lund ........................................AZ Takiesha McFadden ........................AZ

Chuck Anderson ................................D Rocke Andrews, CMC, CRMS............AZ

Michael O’Connor ............................CA Nelson Otero....................................CA

Joel Berman ....................................NY Jennifer Bettencourt ......................MA Ryan Black ......................................TX Doug Braden ..................................CO Mike DeSantis ................................MA Harry Dinham, CMC..........................TX Tammy Engel ..................................CA Farzad Heidari ................................CA Trent Hendry ....................................UT

Nathan Pierce, CRMS ......................UT John Rapasky ..................................AZ Jeanine A. Robbins ..........................AZ Rachelle Rowan ..............................TX Kathy Rubin ....................................TX Jeff Shealey, CRMS, GMA ................TX Manny Solana..................................CA Susan Tamashiro ............................OR George Tribble ................................CA

For additional information about NAMBPAC, please feel free to contact me or visit namb.org. Federal Election Law requires NAMBPAC to use its best efforts to collect and report the name, address, occupation and employer of everyone who contributes $200 or more in a single year. If your contribution to NAMBPAC in 2017 is less than $200, your name may not appear on this list, but NAMBPAC is still very grateful for your generous support!

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Gold-level Contributors ($1,000 - $2,499 annual contribution) Jessi Bostic ....................................UT George W. Burkley III, CRMS..............IN

Virginia Fergusion, CMC ..................CA Scott Grifﬁn ....................................CA

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Diamond-level Contributors ($5,000 maximum annual contribution) Chris Bettis, CMC, CRMS ................OR Andy Harris, CRMS ..........................OR John G. Stevens, CRMS....................UT Michelle Velez, CMC ........................CA

Message From NAMB 2017-2018 President John G. Stevens, CRMS First of all, I would like to take this opportunity to wish you a Happy and Prosperous New Year! Over the past 12 months, through the diligent efforts of a dedicated Executive Committee and Board of Directors, NAMB has held three successful national conferences, NAMB East in Atlanta, our Annual Legislative & Regulatory Conference in Washington, D.C., and NAMB National in Las Vegas, with more than 4,000 mortgage professionals in attendance; started our NAMB on the Road series networking with our state affiliates and their membership; ramped up our outreach efforts by hiring a public relations, as well as a marketing company; launched a new, more interactive Web site with an improved communication and event registration system; rebranded ourselves with a new, more dynamic logo; created the NAMB Foundation, which will expand our education and certification offerings, and NAMB Association Services, a full-service association management company with a focus on our state affiliates and increased our staff by adding an Executive Director as well as a Director of Membership. Wow … 2017 was a pivotal year for NAMB! As I look ahead to 2018, I am excited about what is to come! Two new membership initiatives, three national conferences, numerous state-affiliate based educational workshops, the development of several new designations and much more! If you are a member of NAMB, thank you for supporting us through your continued membership. If you are not a member of NAMB yet, please visit our Web site at NAMB.org and learn more about the benefits and services NAMB has to offer. Thank you for your support, thank you for your confidence, and thank you for your trust in NAMB.

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John G. Stevens, CRMS President of NAMB

“Thank you for your support, thank you for your confidence and thank you for your trust in NAMB.”

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

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

Christopher J. Bettis, CMC, CRMS of Eugene, Ore.based Precision Capital is a member of the NAMB Board of Directors and Chairman of the Government Affairs Committee. He may be reached by e-mail at Chris.Bettis@NAMB.org.

By George W. Burkley III, CRMS

As we move forward with 2018, NAMB is instituting a new membership reward program for our members. Our goal is to add 2,000 new NAMB members this year, and we believe that we are all responsible for membership in our great association. Below are the details of the new NAMB membership reward program called “NAMB Community Builders.” We have three distinct levels with great member benefits:

Recruit two new members to NAMB on an annual basis and receive: l Lapel pin and recognition on the NAMB Web site l Special Membership Certificate

Recruit 25 new members to NAMB on an annual basis, or if you hold a Certified Residential Mortgage Specialist (CRMS) or Certified Mortgage Consultant (CMC) designation, recruit 20 new members to NAMB on an annual basis and receive: l FREE NAMB membership for the year following the completion of the required recruitment number l FREE NAMB jacket l FREE entry to the NAMB Legislative & Regulatory Conference l FREE entry to NAMB National, along with two tickets to Keynote Speaker Luncheon and two tickets to End of Event Party and Awards Dinner (must pre-register) l Up to two nights hotel at either the NAMB Legislative & Regulatory Conference or NAMB National (recipient’s choice) l Blue Star Community Builder Award presented at NAMB National End of Event Party and Awards Dinner l Lapel pin and recognition on the NAMB Web site l Special Membership Certificate and patch l Special ribbon for badge at NAMB events l Special Blue Star Community Builder logo for e-mail signature Rules: 1. To obtain and maintain Community Builder status, individual must be a current NAMB member in good standing. 2. Only one NAMB member can get credit for a new member. 3. NAMB and state affiliate staff are not eligible. 4. All referrals must be indicated on the online or paper NAMB Membership Application at the time of recruitment. Applications should be submitted online via NAMB.org, via e-mail at Membership@NAMB.org or by fax at (530) 484-2906. With today’s regulatory environment easing up, now is the time to join NAMB and get involved. It will be time well invested in your business. George W. Burkley III, CRMS is Owner and Founder of Goshen, Ind.-based American Mortgage & Financial Services, and NAMB Director, as well as Chairman of the Membership Committee. He may be reached by email at George.Burkley@NAMB.org.

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NAMB’s Membership Minute: January 2018

Recruit 10 new members to NAMB on an annual basis or, if you hold a Certified Residential Mortgage Specialist (CRMS) or Certified Mortgage Consultant (CMC) designation, recruit five new members to NAMB on an annual basis and receive: l FREE NAMB membership for the year following the completion of the required recruitment number l FREE NAMB backpack l FREE entry to NAMB National, along with two tickets to the Keynote Speaker Luncheon (must pre-register) l Lapel pin and recognition on the NAMB Web site l Special Membership Certificate and patch l Special ribbon for badge at NAMB events l Special Diamond Community Builder logo for e-mail signature

NationalMortgageProfessional.com

Tax reform … what everyone is expecting to read about from NAMB’s Government Affairs Committee Chair. It seems to be dominating the news, and this is the subject I am most asked about from other mortgage professionals. Well, I am going to “Just Say No” to what everyone expects. There was a much more recent notice that you may have missed. Want a hint? Sept. 14, 1986 was the first airing on TV of Nancy Regan’s anti-drug campaign–“Just Say No” … any guesses now? Well fast-forward to Jan. 4, 2018 and Attorney General Jeff Sessions, “Just Said No” to the last Administration’s policy on cannabis, specifically, rescinding Former Deputy Attorney General James M. Cole’s Memorandum which governed federal prosecution of offenses related to cannabis. “Given the Department’s well-established general principles, previous nationwide guidance specific to marijuana enforcement is unnecessary and is rescinded, effective immediately,” stated the Sessions Memorandum. While I am unaware of any national players in this arena, we did see some state or local non-QM lenders operating in this arena. It will be interesting to see if any institutional money stays around, or if the only players in the sandbox that remain are private individuals. For those mortgage professionals brokering this product, please understand the changing climate and keep your eyes wide open. NAMB is offering no official position on cannabis or cannabis-related lending. The purpose of this article is informative in nature and to protect our members. That being said, I am so excited and optimistic about 2018 for our profession. If there is anything NAMB or I can do to help you, please reach out. To your success!!

l Special ribbon for badge at NAMB events l Special Gold Community Builder logo for e-mail signature

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NAMB Certification Committee Update By Linda McCoy, CMRS

I think NAMB may have been created just for me. I searched for an association that would help with education and offered certifications for mortgage professionals that would carry my expertise to a new level. I searched for an association where I could lobby on the issues that were important to me and provide a way for me to network with those who would be facing the same everyday business decisions that I might be facing. I also needed a place to go where I could get involved and find companies that I might want to do business with. If these are some of the same things you are looking for, then NAMB has it all, and I am so happy to have found them. Go to our Web site NAMB.org and read more about NAMB or search for members in your state and call a few to ask them exactly why they joined NAMB. You could also look for the next local or national meeting or conference on the Web site. We have NAMB National in Las Vegas every year. NAMB National this past October drew thousands of people from all over the country and was a wild success. Two years ago, we added NAMB East at Hilton Head South Carolina, and last year, in Atlanta. We thought our members might find other locations desirable or more accessible to them. We are

always looking for that ideal location to have a great time and revitalize our members. In February 2018, we’ll meet at the beach in Miramar Beach, Fla. for our NAMB Focus: Sales and Marketing Conference. We strive to make our events better each and every year. We always have a perfect line up of vendors for you to meet to enrich your company’s product selection to better serve your clients. Let your voice be heard on Capitol Hill and join us for our annual Legislative & Regulatory Conference, May 5-8 at the Mayflower Hotel in Washington, D.C. View our Certifications page on NAMB.org and see which one you would like to start with. Join NAMB if you are not a member, sign up for the next conference and start your road to a better future in the mortgage industry. I think NAMB was created for you too … Linda McCoy, CMRS of Mobile, Ala.-based Mortgage Team 1 Inc. is a member of the NAMB Board of Directors, as well as NAMB Certification Committee Chair. She may be reached by e-mail at Linda.McCoy@NAMB.org.

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NAMB Focus: Sales and Marketing Conference From Thursday-Saturday, Feb. 15-17, the NAMB Focus: Sales and Marketing Conference will be held at the Hilton Sandestin Beach Golf Resort & Spa, located at 4000 Sandestin Boulevard South in Miramar Beach, Fla. NAMB Focus will feature sales and marketing-focused breakout sessions, a large exhibit hall and plenty of opportunities to network and share ideas with fellow mortgage professionals! In addition, NAMB is excited to announce the NAMB Focus Keynote Speaker, The King of Sales, Jeffrey Gitomer. As a New York Times Bestselling Author, Leadership and Sales Guru, Jeffrey gives public and corporate seminars, runs annual sales meetings, and conducts live and Internet training programs on selling, customer loyalty, and personal development. He has presented an average of 120 seminars a year for the past 10 years. Some of his customers include Coca-Cola, DR Horton, Caterpillar, BMW, Hilton, Wells Fargo Bank, Blue Cross-Blue Shield, Hyatt Hotels, IBM, AT&T, and hundreds more.

Schedule of events (Subject to change)

Thursday, February 15 11:00 a.m.-3:00 p.m. Exhibitor Setup in the Emerald Ballroom Noon-4:00 p.m. Lender Forum (By Invitation Only) in the Coastal Ballroom B 4:00 p.m.-7:00 p.m. Exhibit Hall Open in the Emerald Ballroom 7:00 p.m.-9:00 p.m. Opening Reception in the Coral Ballroom, Sponsored by Class Appraisal

Friday, February 16 8:00 a.m.-10:00 a.m. NAMB Delegate Council Meeting in the Coral Ballroom A

10:00 a.m.-6:00 p.m. Exhibit Hall Open in the Emerald Ballroom 10:00 a.m.-10:50 a.m. Breakout Session: Topic to be Determined in Coral Ballroom D, Sponsored by Flagstar Bank 10:00 a.m.-10:50 a.m. Breakout Session: Why Non-QM Should Be Part of Your Origination Mix in Coral Ballroom C, Sponsored by Angel Oak Mortgage Solutions Times are different today and so is alternative lending. In this informative session from Mel Freyre, Vice President of Sales and Stacy Flanigan, Account Executive with Angel Oak Mortgage Solutions, you’ll learn what alternative lending means now and why you shouldn’t ignore non-agency options. With the refi market drying up and overall originations expected to be lower this year, lenders are being forced to find new ways to

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produce volume. With growth potential of more than $100 billion in annual originations, lenders who avoid the non-agency market do so at their own peril. By offering non-agency products, lenders can break into an untapped market, increase their reach and help millions of underserved American homebuyers find a mortgage that fits their needs–ultimately growing their business. 11:00 a.m.-11:50 a.m. Breakout Session: Business Opportunities With HECMS in Coral Ballroom D, Sponsored by Finance of America Reverse There are 10,000 Baby Boomers turning 62 daily, and all trying to figure out how to fund the next 30 years or so of their lives. Incorporating home equity with a reverse mortgage into a retirement plan could be a key component to solve this need. Learn more from Steve Resch with Finance of America Reverse LLC. This session includes an overview of the Home Equity Conversion Mortgage (HECM), illustrations of how it can be used to manage wealth, and why this could be a once in a generation business opportunity for you. 11:00 a.m.-11:50 a.m. Breakout Session: 2018 Business Plan Workshop in Coral Ballroom C, Sponsored by Quicken Loans and Presented by Ron Vaimberg, President and Head Coach of NMPU The majority of business plans and goals set loan by MLOs and managers often fail, simply because they lack the critical steps and details necessary for the plan to really work. Whether you already have created your plan for 2018, in the process of working on it, or know you need to create one immediately, this presentation is exactly what you need to ensure that you everything needed to ensure your plan works for YOU. Attend this session and you will learn: How to avoid the number one reason why business plans fail; The Seven Master Steps to Building a Complete Business Plan; creating an action plan that is easy to follow; and so much more …

2:00 p.m.-2:50 p.m. Breakout Session: The Whole Tale vs. Wholetail in Coral Ballroom A, Featuring Allen Middleman, Senior VP of Freedom Mortgage Corp., and Mat Ishbia, President and CEO of United Wholesale Mortgage 2:00 p.m.-2:50 p.m. Breakout Session: Got Leads? Marketing Strategies to Gain Business From Real Estate Agents and Your Online Reputation in Coral Ballroom C, Sponsored by Carrington Mortgage Got leads? Learn about marketing strategies you can employ to gain limitless business from Real Estate Agents and from building your own online reputation. Hosted by a successful leader and proven subject matter expert when it comes to mastering sales leads, Kevin DeLory, Assistant Vice

3:00 p.m.-3:50 p.m. BYOB Workshop: Be Your Own Brand, Build Your Own Business, Be Your Own Boss in Coral Ballroom, Sponsored by Finance of America You are your own Brand, your own business and even ... your own boss. Whether you are an independent originator, work for retail operation or are a wholesale AE, you are responsible for building your brand and business. And, what you are doing to build your business is important! In today’s hyper busy world you have to stand out and position yourself as the expert in your field. Join us for a fast-paced workshop on tools you can use in 2018 to brand yourself, build your business and increase your sales. In this session we will cover: How to use customer testimonials to build your following; creating branding to a build solid corporate referral partners; top media leveraging tips to get publicity for your business; and creating Edumarketing that positions you as the expert. 4:00 p.m.-4:50 p.m. Breakout Session: Topic to be Determined in Coral Ballroom C, Sponsored by Impac Mortgage Corp. 4:00 p.m.-4:50 p.m. Breakout Session: Take the Mystery Out of 203K in Coral Ballroom D, Sponsored by REMN, Presented by Steven A. Marshall, National Director of Renovation Lending The industry believes that renovation financing is so complex and difficult that no one wants to sell the product. But with REMN it is a simple agency loan with a construction component and we assist you managing that aspect of the transaction. If the National Association of Realtors (NAR) is correct that the lack of resale inventory is the major obstacle to increased homeownership then renovation financing is the only workable solution. We make it simple to understand and have confidence in marketing this solution to your referral partners. 5:00 p.m-5:50 p.m. Breakout Session: Prepare Your Business for the Future by Getting Into Reverse: Latest in Reverse Mortgage Marketing Techniques and Sales Ideas to Serve this Fast Growing Demographic in Coral Ballroom C, Sponsored by Reverse Mortgage Funding If you’re not originating reverse mortgages, you’re missing a great opportunity to more fully serve a rapidly growing market: customers age 62 and older. In today’s world where traditional sources of retirement income are not always sufficient, Home Equity Conversion Mortgages (HECMs)—commonly known as reverse mortgages—are quickly becoming a necessary building block for retirement funding. Learn about reverse mortgage products, how they can give you a competitive edge, and how we can make it easy for you to enter and succeed in this business. As one of the most experienced reverse mortgage teams, we offer you a complete package of support—including ongoing training and proven marketing strategies. 5:50 p.m.-6:00 p.m. Exhibitor Prize Drawing on Trade Show Floor

Saturday, February 17 9:00 a.m.-Noon NAMB Board Meeting in the Boardroom Don’t miss this opportunity to set your goals, learn new sales techniques and meet the country’s top mortgage professionals at NAMB Focus ... register today! For more information, visit NAMB.org.

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1:00 p.m.-1:50 p.m. Breakout Session: Growing and Protecting Your Business in an Evolving Mortgage Industry in Coral Ballroom A, Sponsored by United Wholesale Mortgage (UWM) The mortgage business has shifted over the last several months, with competition growing on all sides on daily basis. In a time where brokers are constantly battling retail–and sometimes whole-tail–competitors to attract and retain clients, things like technology, service and marketing are vital to long-term success. Join United Wholesale Mortgage President/CEO Mat Ishbia for an eye-opening session on how Loan Originators can effectively grow and protect their business by utilizing outside-the-box tactics and strategy that make the process faster and easier for consumers.

3:00 p.m.-3:50 p.m. Breakout Session: Topic to be Determined in Coral Ballroom C, Sponsored by PRMG

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Noon-1:00 p.m. Keynote Speaker Luncheon Featuring Jeffrey Gitomer, the “King of Sales” in Coral Ballroom A When your title includes the word “King,” you’d better be the global leader. Enter Jeffrey Gitomer. No throne necessary: With just a briefcase, a Macbook Pro, a prospective customer, and a well-prepared presentation, Jeffrey claims the right to the “King of Sales” crown. Couple that with 40 years of hand-to-hand, face-to-face, tweet-to-tweet experience and you have the criteria of what it takes to be king.

President of Wholesale Lending for Carrington Mortgage Services. Joining us for this informative session and leave with some innovative marketing strategies, techniques and insights to help you gain momentum into 2018. This is not to be missed!

nmp news flash

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holders now have available equity to tap, whether via first-lien cashout refinances or home equity lines of credit (HELOC).” Graboske also noted that the number of underwater borrowers declined by 800,000 over the first nine months of 2017, a 37 percent evaporation in negative equity since the start of the year. In what could become the single Only 2.7 percent of homeowners biggest commercial real estate with a mortgage, or about 1.36 story of the year, e-commerce million borrowers, owed more giant Amazon has announced a than their home is worth, the list of 20 metro areas that are lowest such rate since 2006. And under consideration for the 36 states and 70 percent of the location of its proposed second nation’s major metro areas have headquarters campus. The company said that it received bids surpassed pre-recession home price peaks, although 43 of the from 238 North American nation’s 100 largest markets have locations. Amazon said it would yet to reach the high points of spend $5 billion on the second the past decade. headquarters site, which will However, Graboske warned employ 50,000 people. that recent tax code changes The 20 metro areas under could have an impact on the consideration are, in alphabetical HELOC market. order, Atlanta; Austin; Boston; “We’ve noted in the past that Chicago; Columbus, Ohio; Dallas; Denver; Indianapolis; Los Angeles; as interest rates rise from historic Miami; Montgomery County, Md.; lows, HELOCs represented an Nashville; Newark, N.J.; New York increasingly attractive option for these homeowners to access City; Northern Virginia; their available equity without Philadelphia; Pittsburgh; Raleigh, relinquishing interest rates below N.C.; Toronto; and Washington, today’s prevailing rate on their D.C. A final decision is expected first-lien mortgages,” he said. later this year. “However, with the recently “Getting from 238 to 20 was passed tax reform package, very tough—all the proposals interest on these lines of credit showed tremendous enthusiasm will no longer be deductible, and creativity,” Holly Sullivan, a which increases the post-tax senior economic development expense of HELOCs for those manager at Amazon. who itemize. While there are obviously multiple factors to Tappable Home Equity consider when identifying which at All-Time High method of equity extraction makes more financial sense for a given borrower, in many cases, for those with high unpaid principal balances who are taking out lower line amounts, the math still favors HELOCs.” Amazon Narrows List for Second HQ to 20 Metros

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The level of mortgage homeowners with tappable equity has reached a record peak, but tax code changes could have an impact on this market, according to a data analysis from Black Knight Inc. “As of the end of the third quarter of 2017, 42 million homeowners with a mortgage now have an aggregate of nearly $5.4 trillion in equity available to borrow against,” said Ben Graboske, Executive Vice President of Black Knight Data & Analytics. “That is an all-time high, and up more than $3 trillion since the bottom of the market in 2012. Over 80 percent of all mortgage

Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of: NMP News Flash column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, It’s 2018 and I hope your New Year is off to a great start! By this time in January I know that many New Year’s Resolutions have probably already fallen by the wayside, but it’s not too late to still resolve to make even one small positive change for your business this year. Reach-out to one of the NAMB+ Endorsed Providers featured below and give them a chance to earn your business. Not only will you enjoy exclusive NAMB Membersonly discounts, but you will be working with a company that is truly committed to supporting our industry and becoming a partner in your business. Finally, if you live anywhere up north like I do, you are probably already starting to think about finding an escape from this winter weather. Take some time for yourself

and your business and join us February 15-17 at the Hilton Sandestin Beach Golf Resort & Spa in Miramar Beach, FL for the NAMB Focus: Sales & Marketing Conference. The conference schedule is packed with great presentations and NAMB+ will be in the Exhibit Hall along with a number of our NAMB+ Endorsed Providers. Come down to Florida and see us in February! Sincerely,

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

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

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

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

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

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

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

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

JANUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

National Mortgage Professional Magazine is proud to announce its annual list of Top Mortgage Employers. We polled our readers about their employers based on the following criteria: l Compensation

l Corporate culture

l Training resources

l Speed

l Long-term strategy

l Industry participation

l Marketing support

l Day-to-day management

l Innovation

l Technology

l 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), collected votes and factored in industry reputation to create a list of Top Mortgage Employers.

Mortgage Lenders: National (More Than 500 MLOs) Company Name

Web site

Phone #

AcademyMortgage.com

(800) 660-8664

Professionals who want to build relationships and develop and share their strengths, both personally and professionally.

[INSERT: AFN_Logo]

AFNCorp.com

(714) 831-4000

At AFN, we are dedicated to making every loan a relationship that will last a lifetime.

[INSERT: APM_Logo]

APMortgage.com

(916) 960-1325

Originators that make it their personal mission to deliver the best possible loan experience and solutions to their borrower.

CaliberHomeLoans.com

(800) 401-6587

Producers at Caliber who value a company that rewards them every day–both financially and culturally–excel here.

CardinalFinancial.com

(855) 561-4944

The hard-working, forward-thinking and big-dreaming professional.

CarringtonWholesale.com

(866) 453-2400

Motivated and driven individuals who strive for excellence in their careers and accelerate in an innovative and inspiring environment.

CMGFi.com/Join

(925) 983-3000

People excel when they put the customer first. #ECETNENE … Every Customer, Every Time, No Exceptions, No Excuses.

[INSERT: Flagstar_Logo]

Flagstar.com

(800) 945-7700

Talented people whose end goal is to craft financial solutions custom-fitted to each customer’s needs.

[INSERT: Gateway_Logo]

GatewayLoan.com

(877) 406-8109

Gateway employees are hard-working individuals, dedicated to a strong customer experience.

[INSERT: Guaranteed_Rate

GuaranteedRate.com

(866) 934-7283

Loan Originators working within a POD model, which allows them to focus on sales and exponentially boost production.

[INSERT: Movement_Mort

Movement.com

(877) 314-1499

Employees that value our community-drive environment and have a passion for loving people will excel at Movement Mortgage.

NewAmericanFunding.com

(800) 450-2010

Those who work hard, go the extra mile, and have a strong desire to succeed, will reach their full potential.

[INSERT: PRMG_Logo]

PRMG.net

(951) 278-0000

Motivated individuals who want to be progressively BETTER, as demonstrated through their actions and willingness to adapt to the landscape.

[INSERT: PRMI_Logo]

PrimaryResidentialMortgage.com

(800) 255-2792

Motivated, focused and self-starter individuals driven to accomplish more and excel in providing a positive and personal experience.

PrimeLending.com

(800) 317-7463

Top performers up to the challenge of being surrounded by the best and discovering how good they can really become.

[INSERT: Academy_Logo]

[INSERT: Caliber_Logo]

[INSERT: Cardinal_Logo]

[INSERT: Carrington_Logo]

[INSERT: CMG_Logo]

[INSERT: New_American_Log

[INSERT: PrimeLending_Logo]

Who excels at this company?

Mortgage Lenders: National (More Than 500 MLOs) Company Name

Web site

Phone #

[INSERT: SecurityNational

SNMC.com

(844) 542-5626

Our top originators are self-starters who are empowered to provide superior customer service with a unique personal touch.

TheMoneySource.com

(866) 867-0330

Team members who are driven to build a business that focuses on growing happiness.

[INSERT: TMS_Logo]

Who excels at this company?

Mortgage Lenders: Regional (Up to 500 MLOs) Company Name

to 500 MLO [INSERT: Acopia_Logo]

Web site

Phone #

AcopiaHomeLoans.com

(615) 859-5537

Team-oriented employees who enjoy working to make the dream of homeownership a reality while delivering excellent customer service.

[INSERT: Alderus_Logo]

Alderus.net

(702) 255-5783

More than 30 percent of our team are true thought leaders at various levels in state and trade associations.

LendTheWay.com

(844) 825-1081

Top originators who are driven to excellence in customer experience.

AtlanticCoastMortgage.com

(703) 592-6235

Originators know nothing is more valuable than the relationships they build, at ACM, originators see the face of a future partner/friend.

BellBanks.com

(952) 905-5000

People whose interactions show they support our core values: Family atmosphere, unequaled personal service and giving back to the community.

[INSERT: Castle_Cooke_Lo

CastleCookeMortgage.com

(866) 461-7101

Hard-working individuals who enjoy in fast-paced environments and thrive on success-based compensation and rewards excel at Castle & Cooke Mortgage.

[INSERT: Centennial_Lendin

CLG-LLC.com

(215) 469-1000

Employees who are motivated, self starters with a passion for excellence and a customer-focused mentality.

CertaintyHomeLoans.com

(866) 599-5510

Talented, commitment and professional individuals, dedicated to providing exceptional customer service through each stage of the loan process.

[INSERT: Christensen Financi

CFIMortgage.com

(407) 869-0008

Entrepreneurial, forward-thinking individuals who are nimble and well-connected within the industry.

[INSERT: CU Home Mortgage

CUHMS.com

(206) 596-4800

We work well as a team to make sure that the member experience is nothing short of exceptional.

DelmarFinancial.com

(314) 434-7000

Knowledgeable Mortgage Loan Originators that can convey proper expectations to clients and trust the office support to handle the rest.

[INSERT: Assurance_Financ

[INSERT: Atlantic_Coast_L

[INSERT: Certainty_Ho

[INSERT: Delmar Financial

Who excels at this company?

Mortgage Lenders: Regional (Up to 500 MLOs) Company Name

Web site

Phone #

EmbraceHomeLoans.com

(800) 333-3004

Individuals who realize that a remarkable, exceptional customer service experience is key to success in this industry excels at Embrace.

ELGLoans.com

(281) 693-5363

Individuals who value a family atmosphere with the technology and processes of a cutting-edge organization.

EnvoyMortgage.com

(877) 232-2461

Mortgage individuals who are driven to make a difference in borrower’s lives see their careers excel at Envoy.

EquityPrime.com

(877) 255-3554

Mortgage loan professionals who are focused on helping customers on their loan journey.

CallEquity.com

(800) 270-7082

Service-driven individuals who are passionate about helping to improve the lives of families in the modern technology era.

JoinFamilyFirst.com

(732) 505-4600

Loan Originators who are given the tools and resources needed to build their business and get loans closed on time.

FFCMortgage.com

(585) 697-350

Employees who make the most of a high level of autonomy and decision-making authority.

FCLoans.com

(866) 970-342

Dedicated professionals who excel in a culture that both encourages independence and is family-centric.

[INSERT: First Direct Lendin

FirstDirectLending.com

(949) 535-1998

Success at FDL comes from being highly empathetic; working directly with customers to find solutions that lead to financial security.

[INSERT: George Mason M

GMMLLC.com

(800) 867-6859

Every employee has the capability of excelling by setting goals and keeping lines of communication open throughout the lending process.

GeorgeTownMTG.com

(512) 930-7888

Highly-productive go-getters who are given the tools they need to be successful, while embracing our pillars of “Opportunity, Service & Innovation” in a family atmosphere.

GriffinFunding.com

(800) 527-5910

Individuals with lots of hunger that have a good character. Originators that are obsessed with taking care of a client.

HancockMortgage.com

(888) 391-8237

All employees excel at this company. We have a designated trainer to help all those coming on board.

InnovativeMortgage.LendingOutpost.com

(727) 372-8059

Those who are in this business for the long haul and want to get to the next level of expertise.

[INSERT: Embrace Home Lo

[INSERT: Encompass

[INSERT: Envoy Mortgag

[INSERT: Equity Prime Logo]

[INSERT: Equity Resource

[INSERT: Family First Fundin

[INSERT: FFC Mortgage Lo

[INSERT: Georgetown M

[INSERT: Griffin Funding Log

[INSERT: Hancock Mortga

Who excels at this company?

Mortgage Lenders: Regional (Up to 500 MLOs) Company Name

Web site

Phone #

iServeLending.com

(888) 403-8843

Mortgage professionals committed to closing every loan on time … ALL the time.

JohnAdamsMortgage.com

(800) 239-9109

Everyone can. The company provides the support and the autonomy to be the professional that you want to be.

MyKeyMortgage.com

(847) 296-5757

Loan Officers who know their best years are ahead of them and who are excited to get there.

GoLoanStar.com

(503) 597-5702

PEOPLE excel at this company. Every department is critical to the others success. We are People Powered Mortgages.

[INSERT: McLean Mortgag

McLeanMortgage.com

(866) 670-2018

Referral-based top producers excel at McLean Mortgage. One-third of our sales force placed in the top one percent nationally.

[INSERT: Mid-Island Mort

MortgageCorp.com

(800) 964-5363

Conscientious, hard-working employees who consistently go the extra mile to provide uniquely personalized service to their clients and colleagues.

[INSERT: MiMutual Mortga

MiMutual.com

(800) 700-5839

Customer-focused problem-solvers who understand using technology as means to assist human interaction in achieving Raving Fans service.

[INSERT: Mortgage Financia

JoinMFS.com

(817) 601-9010

Producers that need the right balance between technology/touch, are committed to excellence, and like to have fun grow here.

WeHireStars.com

(913) 387-5865

High-energy, driven professionals driven to achieve award-winning success, while truly making a difference in lives of our customers.

[INSERT: Mortgage Solution

MortgageSolutions.net

(719) 447-0325

Individuals committed to blending the human experience with the loan buying process.

[INSERT: Mountain West Fin

MWFInc.com

(888) 793-6470

Top Originators who play an active role in their communities and build strong personal brands that compliments the company’s values.

[INSERT: Nations Lending Co

NationsLending.com

(877) 816-1220

Career-focused individuals who treat others how they want to be treated in return.

NeighborhoodLoans.com

(630) 225-8517

Driven and proactive individuals who enjoy providing exceptional customer service to those who are going through the mortgage lending process.

NewPennFinancial.com

(888) 673-5521

Make your job as big as you can— contribute, add value, achieve!

[INSERT: iServe Reside

[INSERT: John Adams

[INSERT: Key Mortgage S

[INSERT: LoanStar Hom

[INSERT: Mortgage Lender

[INSERT: Neighborhood Loa

[INSERT: New Penn Fin

Who excels at this company?

Mortgage Lenders: Regional (Up to 500 MLOs) Company Name

Web site

Phone #

[INSERT: Norcom Mortgag

NorcomMortgage.com

(860) 676-8003

Originators wishing to close loans quickly with a full product lineup and individualized support.

[INSERT: NRL Mortgage L

ExploreNRL.com

(713) 275-1357

Competitive originators that have the desire to custom build their P&L, pipeline and branch exactly as they want.

[INSERT: Oak Mortgage

OakMortgageUSA.com

(856) 988-8100

Team-oriented individuals â&#x20AC;Ś everyone works towards the common goal of closing loans!

[INSERT: On Q Financial

OnQFinancial.com

(866) 667-3279

Those who take pride in being the BEST, move FAST, collaborate and innovate reach new heights at On Q.

[INSERT: OneTrust Home L

OneTrustHomeLoans.com

(877) 706-5856

Individuals who value integrity and transparency, feel empowered to innovate and strive for greatness.

[INSERT: Planet Home Lend

PlanetHomeLending.com

(866) 882-8187

MLOs seeking business growth through great pricing, cutting-edge secondary marketing technology, in-house marketing, and best-in-class underwriting and fulfillment.

[INSERT: Premier Nationwid

JoinTeamPremier.com

(972) 537-0600

Entrepreneurial-minded individuals who want to grow their business with access to industry leading operations support and technology.

[INSERT: Prime Mortgage L

GoPrime.com

(919) 303-1225

Individuals that take advantage of the many benefits that Prime Mortgage Lending offers are highly successful.

[INSERT: Province M

ProvinceMAI.com

(888) 593-1092

Weâ&#x20AC;&#x2122;re seasoned mortgage professionals who actively share best practices to help each other succeed in any market!

[INSERT: Radius Fi

RadiusGRP.com

(781) 742-6500

Employee Satisfaction=Customer Satisfaction. How do we know? Well, we ask them with our cool app called myradiusGO.

[INSERT: RCN Capital Logo]

RCNCapital.com

(860) 432-5858

Talented individuals that are dedicated to providing superior customer service in a fast-paced work environment.

Ruoff.com

(260) 999-6200

When we all work together for a common good, to help fulfill the dream of home ownership, we all excel.

[INSERT: SD Capital Fundin

SDCapitalFunding.com

(732) 549-7001

Motivated mortgage professionals who are willing to adapt to technology.

[INSERT: Shamrock Fina

ShamrockFinancial.com

(800) 321-8129

Shamrock Financial was born to inspire talented people in helping lower the cost of homeownership in communities throughout New England.

[INSERT: Ruoff Home M

Who excels at this company?

Mortgage Lenders: Regional (Up to 500 MLOs) Company Name [INSERT: Southeast Mort

[INSERT: TowneBank Mortg

[INSERT: United Nort

[INSERT: University Len

[INSERT: Wallick & Vol

[INSERT: Washington First

Web site

Phone #

Who excels at this company?

SoutheastMortgage.com

(770) 279-0222

Driven individuals in both sales and operations, that need a company with the tools and support to achieve their goals.

TowneBankMortgage.com

(888) 637-1321

Results-driven individuals who want to make the mortgage process fun, fast and enjoyable.

UnitedNorthern.com

(516) 520-5700

An individual who is goal-oriented and who enjoys working in a team-oriented culture will excel here at United Northern Mortgage Bankers.

University-Lending.com

(586) 783-7900

Tenured, purchase-driven Loan Originators with a strong history of serving the client needs of military veterans, Realtors and builders.

VFund.com

(801) 639-0900

Employee-empowered organization committed to providing the best possible customer experience through technology and communication.

WVMB.com

(800) 280-8655

Top Mortgage Originators who are driven to excel.

WAFirstMortgage.com

(425) 576-5462

Top Originators who are focused on working and developing purchase business with Realtors and borrowers.

Service Providers Company Name

Web site

Phone #

[INSERT: ARMCO Logo]

ARMCO.us

(800) 858-1598

Self-motivated, enthusiastic team players who make improvements in the day-to-day work lives of ARMCO employees and clients.

[INSERT: Class Appraisal L

ClassAppraisal.com

(866) 333-8311

Class Appraisal is a leading AMC that promotes team collaboration and produces innovative technology to streamline the appraisal process.

[INSERT: Credit_Plus_Logo]

CreditPlus.com

(800) 258-3488

Individuals committed to their professional growth and contributing for the betterment of customers and the company excel at Credit Plus.

[INSERT: DocMagic Logo]

DocMagic.com

(800) 649-1362

Employees who thrive at DocMagic are smart, tech-savvy, highly-motivated, serviceoriented and take GREAT pride in what they do.

[INSERT: Indecomm Logo]

Mortgage.Indecomm.net

(732) 404-0081

People who believe in the organizationâ&#x20AC;&#x2122;s values and vision, who approach their roles and responsibilities with an entrepreneurial can-do spirit.

MCT-Trading.com

(619) 543-5111

One hundred percent team players, always collaborating; helping each other out. Laser-focused on always providing excellence in lender client support.

[INSERT: MCT Logo]

Who excels at this company?

Service Providers Company Name [INSERT: OpenClose Logo]

[INSERT: Quandis Logo]

[INSERT: RoundPoint Mortg

[INSERT: TagQuest Logo]

Web site

Phone #

Who excels at this company?

OpenClose.com

(561) 655-6418

Put simply, employees that have vendor and lender experience, and have the discipline to work autonomously (often remotely) without supervision.

Quandis.com

(949) 525-9000

Quandis has rigorous hiring standards, recruiting those ideal-fit people who are very smart, and can work hard and play hard!

RoundPointExchange.com

(866) 970-3863

Employees who excel at RoundPoint are people-centric individuals who are empowered and driven to provide the best customer experience possible.

TagQuest.com

(866) 376-5540

TagQuest gives fantastic training and truly wants you to succeed as an individual.

Wholesale Lenders Company Name

Web site

Phone #

AngelOakMS.com

(855) 539-4910

Driven professionals with unparalleled dedication to the customer 100 percent, 100 percent of the time.

[INSERT: Citadel_Logo]

CitadelServicing.com

(949) 900-6630

Top performers at Citadel Servicing Corporation possess an entrepreneurial spirit and display entrepreneurial attitude in their work.

[INSERT: JMAC_Logo]

JMACLending.com

(949) 390-2688

Smart people with entrepreneurial attitudes dedicated to teamwork and providing superior client service.

MyNDM.com

(949) 270-7900

Goal-oriented associates driven to provide excellent service and mortgage products.

[INSERT: Plaza Hom

PlazaHomeMortgage.com

(858) 346-1208

Plaza Home Mortgage Inc. has earned a well-deserved reputation as an esteemed industry leader.

[INSERT: REMN_Wh

REMNWholesale.com

(732) 738-7100

Customer service-oriented individuals with the common goal to close loans will always succeed at REMN.

UWM.com

(800) 981-8898

Driven, coachable professionals who demonstrate a strong work ethic and positive attitude, and are committed to delivering great client service.

[INSERT: Angel_Oak_Logo]

[INSERT: United Whol

Who excels at this company?

Why It’ Your T y teeth need a cleaning. I’m well overdue to see my dentist. But I have a good reason. In fact, I have a few good reasons. What has this to do with how you can become a better MLO? Just wait, be patient and enjoy the show. Last week, my wife came home after work with a plastic bag filled with goodies that she had received after she had left her dentists’ office that morning: A new toothbrush, a small sample of a new brand of toothpaste and a tiny container of floss. Now, just to be clear, Chris brushes faithfully every day, but flossing is not one of her habits. I, on the other hand, use an electric brush, every day and floss regularly. The important difference is her almost religious devotion of regular visits to have her teeth checked and cleaned. Me, well since I was very young, when I hated going to Dr. Ben Soffer’s office, our dentist next-door neighbor who I nevertheless hold as an idyllic figure. I saw him last at age 33, shortly before he died of lung cancer. This handsome debonair man died much too young because he smoked about three packs a day. Insofar as my issue with the cleaning visits, I had and still have the most overwhelmingly sensitive teeth and it pains me just to think about opening my mouth, so some technician can start to scrape the crud off my teeth. I tell them all, every single time I sit in the chair that they need to know how much it hurts to endure that special vibrating machine. The normal thing they do is coat my gums with some numbing liquid, a topical Benzocaine which never works. It always hurts. I even ask them to use Novocain, but they almost never do. I know it’s a financial issue, plus most of them believe I’m exaggerating how much it hurts.

JANUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

The

Mortgage

Godfather

It’s Important to Clean Teeth ... Often BY RALPH LOVUOLO SR.

developing your business. Finally, just to be even more clear as to what I see the successful people do and what I know works, stop depending on your company marketing department to send out newsletters, either monthly or quarterly. They are almost useless. People who work in marketing are not creating a

branding formula for you. I know many of you think that you need them, and I’m not completely discounting what they do. But if you want to develop business, build your brand on your own. By the way, be sure you have your teeth cleaned every six months. I’m going to call my dentist’s office this week.

Ralph LoVuolo Sr. has nearly 60 years history in the mortgage business. He was a Co-Founder/President of the NYAMB and a long-term member of the Board of Directors of NAMB. Presently, Ralph is Director of Sales Coaching for Lenders Compliance Group. He may be reached by phone at (917) 576-1230 or e-mail RLoVuolo@gmail.com. 37

n National Mortgage Professional Magazine n JANUARY 2018

written over and over a very simple set of words that you need to implant in your brain: “If you’re not going to do it five times, don’t do it the first time.” Most of your prospects are like me so treat them that way. If truth be told five times is not close to enough. Brand yourself. Make yourself known. Do it regularly. Stop making excuses. Stop looking for more costly ways, just because they appear to be some fanciful internet application. Stop trying to buy your business, your referral clients, your new buyers. Use the simplest ways known to man to get to people: Raise your hand in the crowd. Keep it raised. I know how hard it is to keep your arm up, but when it gets tired, lower it, take a rest and then do it again and again and again. And rather than what I’ve been preaching, if this is going to be your business for a long time, keep doing it until you reach the pinnacle of your business, to become the super star you’re capable of being. Branding yourself is really easy. It doesn’t take a great deal of ability, but it does take discipline. It does take a regular way that is simple and effective. For those of you who use LinkedIn, notice what happens when you connect with someone new. The LinkedIn company itself encourages you to “start a conversation” what is simpler than that? What could be easier? If you don’t know phrase or sentence in a regular email to your data base, ask me and I’ll give you access to the most interesting and effective phrases you’ll ever hear that will help make you so well known to your connections, you’ll be astounded And in case you didn’t get the point, you need a data base. And you need to “mine” it. You need to use it. You need to contact it all the time, preferably every week. It continues to astonish me that most of you can’t see the sense or the ease of

NationalMortgageProfessional.com

So why don’t I go regularly? You’re now convinced that it’s because it hurts. But aren’t you reading this because you want to learn something that you want to apply to your business? You really don’t give a damn about my teeth, and that’s fine. Don’t you want to develop new clients? Don’t you want to have your former clients refer their friends and family to you when they need the service you provide? Don’t you want to have referral sources that you’ve not yet done business with to send you new business? You’ll probably not believe, or easily be convinced that, I also don’t go through that painful experience because my present dentist has no regular follow up system to remind me every week that I need to be there, that it’s a good and important thing to do for my general health, that my teeth are just as important to my well-being as any other part of my body. That if my teeth aren’t kept in good condition, there are many diseases that could result in me contracting diseases that could cause me a lot more serious pain than I would have if I had just endured the relatively short time in the chair I hate so much. Not every patient is like my wife, in fact very few are. Most are like me and need regular reminders. My dentist stopped sending me reminders after 3 times. I took special notice of it. You my friend, have been reminded by me on countless occasions that one of the most important ways to build a business is to constantly remind your former clients, family and friends of your basic existence … your ability to do what others don’t or cannot do. But what I hear from almost every one of you is that you don’t want to annoy people, that you don’t have time to send regular emails, that you don’t know what to say, that asking for business is not the way to build your business. I’ve

Acquisitions & Mergers

JANUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

By Andy W. Harris, CRMS

s typical in the mortgage and real estate industry, I believe we’ll continue to see companies sell and merge in 2018, more so than in 2017. The interesting part of most sales I’ve seen is that they do not come by choice. The majority sell based off necessity, personal life changes in the owner(s), or an inability to manage the business economically to succeed. Instead of building up a successful entity to sell at retirement age or pass on to their children, owners continuously merge and sell simply to avoid going bankrupt. This is an important trend to watch for a variety of reasons. First, it’s partially what causes the significance in revolving resumes that our industry is so well known for. It’s important that all housing professionals research any company they choose to partner with. Secondly, we need to uncover any monopolies that can be bad for our local markets, the industry and the consumers we serve. Larger companies buying up smaller locally-owned companies is not good, and we need to ensure that small businesses have the support and help they need to succeed. I bring up this topic due to recent trends that I’ve seen personally. In the last several months, a good mortgage company and real estate company (small businesses unrelated) in my local market sold to larger national firms. What I find interesting about this is that the very roots, beliefs and company brand was built by the exact opposite beliefs of these larger national players that purchased them. Money can buy opinions and you quickly see the opinions change of any owners that remain on as an employee with the new company, but can they really ‘sell out’ as they say mentally? What I find to be ridiculous is that these companies ‘value’ the company in which they are buying by production and assets. The employees or partners of the local small business are the revenue generators and simply the humans that derive the value and sales price of the business. What happens in nearly every acquisition

I’ve seen is that after the sale there is a max exodus of employees due to the foundation they supported being ripped out beneath them and replaced by large corporate special interests. The very value they determined is destroyed by them. How does that make sense for these larger companies? Who has the advantage here? I think 2018 will be an interesting year for this and certainly an on-going topic for both small and larger companies selling and merging. Let me know what you’re hearing and seeing in your local marketplace. Are you an originator? Send your stories! To have your topics considered in future editions, please e-mail me with “OrigiNation” in the Subject Line at AHarris@VantageMortgageGroup.com. These can be confidential or your name and company can be referenced if you wish. You can also join the Facebook Group by searching for “OrigiNation.”

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*966><2:;<A,>55A)6;47==A9<(A 095> (><2A)064?9=7A5;9<A 6;1A:?7A:>17A9A5;9<A A57A>=A=0 1>::7/A:;A0</76,6>:><2 A9</A177:=A:?7A;<$:>17A45;=><2A/9:7A>/7<:> A7/A9=A:?7A*5;=7A; A =46;,A/9:7A;6A:?7A4;1)9<(A,>55A9))5(A9A45;=><2A4;=:A467/>:A; A & A:;A:?7A5;9<A 9:A45;=><2+A-7</76A*67/>:A19(A 7A67=:6>4:7/A 9=7/A;<A=)74> A4A)6;/04:A20>/75><7=+A!<A;6/76A:;A6747> 7A:?7A45;=><2A4;=:A467/>: A9<(A/759(A:?9:A490=7=A9A)064?9=7A5;9<A:;A<;:A177:A:?7A;<$:>17A45;=><2A/9:7A>/7<:> A7/A9=A:?7A*5;=7A; A =46;,A/9:7A10=:A 7A/07A :;A*966><2:;< =A></7)7</7<:A)6;47==7=+A! A:?7A/759(A>=A/07A:;A:?7A 6;376 A ;66;,76 A=75576 =A;6A9<(A:?>6/A)96:( =A94:>;<A;6A><94:>;<A;6A9<(A;:?76A4>6401=:9<47=A;0:=>/7A; A*966><2:;< =A4;<:6;5 A:?7A45;=><2A4;=:A;8A76A,>55A 7A ;>/+A@?>=A;8A76A7 450/7=A=;17A purchase loan programs and property types including USDA loans, 203K Loans, Short Sales, New Construction loans, manufactured homes, loans requiring property repairs, engineers inspection, or re-inspection prior to closing, loans requiring condo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Â© Copyright 2007-2018 Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200A, Anaheim, CA 92806. 866-453-2400. NMLS ID #2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access website: www.nmlsconsumeraccess. org. AZ: Mortgage Banker BK-0910745. 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 www.dora.state.co.us/real-estate/index.htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. MNBA @?>=A >=A <;:A 9<A ;8A76A :;A 7<:76A ><:;A 9<A ><:767=:A 69:7A 5;43A 9267717<:A 0</76A .><<7=;:9A -9,+A MOBA .>==;06>A *;1)9<(A '72>=:69:>;<A &%$&#%"+A !<$ :9:7A AA47BA .>==;06>A '7=>/7<:>95A Mortgage Loan Broker License 14-1746. 251 SW Noel, Lees Summit, MO 64063. NV: Mortgage Broker License 4068 (Residential Mortgage Origination/Lending). NJ: Licensed by the N.J. Department of Banking and Insurance. NY: Licensed Mortgage Bankerâ&#x20AC;&#x201D;NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. OHBA ?>;A .;6:2927A -;9<A 4:A *76:> A49:7A ; A '72>=:69:>;<A .+ & &#+ +A RI: Rhode Island Licensed Lender, Lender License 20112809LL. VA: Lender & Broker License #MC-5382. NMLS ID 2600 (www.nmlsconsumeraccess.org). WA: Consumer Loan License CL2600. Also licensed in AL, AK, AR, CT, DE, DC, FL, HI, ID, IN, IA, KS, KY, LA, ME, MD, MI, MS, MT, NE, NH, NM, NC, OK, OR, PA, SC, SD, TN, TX, UT, VT, WV, WI and WY. NOTICE: All loans are subject :;A 467/>: A 0</76,6>:><2A 9</A )6;)76:(A 9))6; 95A 20>/75><7=+A 8A767/A 5;9<A )6;/04:=A 19(A 96(A (A =:9:7+A @?767A >=A <;A 20969<:77A :?9:A 955A ;66;,76=A ,>55A 095> (+A '7=:6>4:>;<=A 19(A 9))5(+A @?>=A >=A <;:A 9A 4;11>:17<:A :;A 57</+A @761= A 4;</>:>;<=A 9</A )6;2691=A 967A =0 74:A :;A change without notice. This information is for industry professionals only and is not intended for distribution to consumers. Carrington Mortgage Services, LLC is not acting on behalf of or at the direction of HUD/FHA or any government agency. All rights reserved.

n National Mortgage Professional Magazine n JANUARY 2018

Unconventional loans for conventional clients

WE CLOSE ON-TIME, EVERY TIME. THATâ&#x20AC;&#x2122;S CARRINGTONâ&#x20AC;&#x2122;S ON -TIME CLOSING PROMISE.*

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Specializing in credit scores below 640, manual underwriting, and manufactured housing.

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.

New American Funding Honored by Fortune as One of America’s Best Workplaces for Diversity

JANUARY 2018 n National Mortgage Professional Magazine n

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Fortune and Great Place to Work have named New American Funding as one of the top workplaces for diversity in the United States. New American Funding ranked 42nd in the nation on the third annual list, which is based on employee feedback and the amount of diversity within an organization’s workforce. Great Place to Work evaluated several areas, including fair treatment in the workplace, opportunities for advancement, and access to senior leadership. Among the employees surveyed, 97 percent believe New American Funding has a great atmosphere. “We’re passionate about diversity and inclusion. It’s at the heart of what we do at New American Funding. It’s built into our culture’s DNA,” said CoFounder and President Patty Arvielo. “Therefore, we count it a tremendous honor to be acknowledged by Fortune for creating an outstanding work environment for all employees.” Arvielo, a long-time diversity champion, has successfully established a company that’s 43 percent minority and 58 percent women, with many holding Clevel positions. She has developed a culture where diverse groups have the opportunity to advance through an initiative known as, “If you want to grow, we want to know.” She also invests time in helping women progress in their career through her quarterly mentorship program.

As well, Arvielo has created opportunities for employees to provide more services to diverse consumers and communities. Through Latino Focus Committee and New American Dream, employees are educating Latinos and African-Americans who want to become homeowners. Earlier this year, the company pledged to lend $25 billion in new mortgages to Hispanic borrowers. Angel Oak Capital Raises Nearly $300 Million in Private Credit Fund

Angel Oak Capital Advisors LLC has raised $291 million in capital commitments for its first private credit fund. Having exceeded the initial fundraising goal of $250 million, the Angel Oak Real Estate Investment Fund I LP is now closed to new investors. The Fund, which invests primarily in non-qualified mortgages (NonQM), provides investors access to the growing opportunity in nonbank lending to creditworthy borrowers who have been unable to obtain residential mortgages since the credit crisis. Angel Oak is well-positioned in the private residential mortgage market given the firm’s expertise in non-agency mortgage credit and its vertical integration with its affiliated mortgage companies. The firm manages more than $3.5 billion in residential mortgage credit (loans and securities), and has securitized $850 million in

Non-QM loans since 2015. Additionally, its affiliated mortgage companies originated $1 billion-plus in Non-QM loans in 2017. “More and more, we’ve seen institutional investors recognize the growth potential for non-bank lending,” said Sreeni Prabhu, CoCEO and Chief Investment Officer of Angel Oak. “Our success in raising capital for Angel Oak Real Estate Investment Fund I demonstrates strong investor interest in the Fund’s differentiated strategy to provide attractive, risk-adjusted returns backed by residential real estate. We believe this opportunity, when paired with our expertise in non-agency mortgage credit, makes this an attractive investment.” NAMB+ Adds Two New Endorsed Providers

NAMB+ Inc. has announced that MySMARTblog.com has been named an Endorsed Provider for NAMB+. MySMARTblog.com was founded in 2009 to improve online communications between mortgage professionals and their clientele. MySMARTblog.com understands the difficulties many sales professionals face when trying to cover all of the bases that the fast-paced growth of social media and Internet marketing have thrust upon them. MySMARTblog.com builds and deploys Web sites in just

seven to 10 business days, customized with professional graphical design, and maintained and backed up daily. MySMARTblog.com writes and publishes high-quality, industryrelevant content each business day, and shares that same content out to the client’s Facebook, Twitter, LinkedIn and Google+ accounts instantly. “NAMB+ is pleased to welcome MySMARTblog.com as its newest Endorsed Provider,” said Mike DeSantis, NAMB+ President. “MySMARTblog.com’s offerings will benefit our membership by providing a steady stream of engaging, relevant and industry-specific content.” Mikel Erdman, President of MySMARTblog.com, said, “MySMARTblog.com is very excited about being designated as a NAMB+ Endorsed Provider. As long-term participants both in the origination and marketing areas of the mortgage industry, we are acutely aware of the powerful and important work that NAMB does to support professional lenders. We look forward to working together to continue supporting and promoting best practices and professional marketing systems for all loan originators.” NAMB+ Inc. has also announced that PreApp 1003 has been named an Endorsed Provider for NAMB+. Founded in 2015, Houston-based PreApp 1003 was established for Loan Originators to easily and securely pre-qualify prospects from the convenience of their mobile devices. The cloud-based PreApp 1003 helps from the point of referral, to obtaining credit, calculating ratios and funds to close, to issuing closing

cost worksheets and conditional pre-qualification letters. Mike DeSantis, NAMB+ President, said, “Our NAMB+ members will benefit from the ease of use that PreApp 1003 provides in today’s everexpanding digital mortgage marketplace.” NAMB+ connects NAMB members with an array of Endorsed Providers aimed at helping mortgage professionals gain a competitive advantage in today’s marketplace with discounts and special programs only available to NAMB members. NAMB+ brings everything from compliance, digital mortgage platforms, lead generation, phone services, social media, custom canvas prints and much more to NAMB members as part of the NAMB+ program. “We are excited to help NAMB members and their companies increase their marketing power with PreApp 1003, at a reduced cost on new subscriptions,” said Dru Brents, Chief Executive Officer of PreApp 1003. PathSoftware Integrates With DocMagic to Streamline the Paperless Process

leading provider of fullycompliant loan document preparation solutions, differentiating itself by the way it handles data and runs compliance checks,” said Doug Mitchell, Director of Sales and Support at PathSoftware. “Our integration with DocMagic will not only make ordering compliant documents significantly easier for our joint clients, it will also significantly reduce time and cost, and eliminate the need for data re-entry, which can inadvertently cause errors and lead to compliance issues.”

FirstClose Partners With Flagstar on Reporting and Closing Solutions

FirstClose has announced a partnership with Flagstar Bancorp Inc. that will provide Flagstar access to an end-to-end home equity lending technology solution, as well as a vendor management system that eliminates duplicate data entry. FirstClose is now fully integrated continued on page 43

Endorphinators { Term used to describe the TMS loan team who provide such exceptional service that it releases chemical endorphins in your brain, causing extreme happiness }

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Endorphinators are a highly trained, highly specialized

We are TMS. We are on a mission to Grow Happiness

loan team that is with your loan from start to ﬁnish. They

for brokers, borrowers, and, well, everyone. We speak a

are the superheroes who make sure your loan gets to the

different language. We do business in a different way.

Wunderwriters in as fast as 24 hours, and is Pink Approved and cleared-to-close in as little as 10 days. They operate transparently, allowing you to track the loan process in

Ready to experience that euphoric rush you’ll get from doing business with your Endorphinators at TMS? Go to wholesale.themoneysource.com

real time.

Grow Happiness The Money Source Inc. NMLS #6289, 135 Maxess Rd., Melville, NY 11747. This is intended for the exclusive use of mortgage professionals only and is not intended for distribution to or use by consumers. This information is not considered an advertisement for consumer credit pursuant to Regulation Z, 12 C.F.R. 1026.24.

n National Mortgage Professional Magazine n JANUARY 2018

PathSoftware has announced that Path, its multi-channel, cloud-based mortgage loan origination software (LOS), is now fully integrated with DocMagic. The new Web integration provides a direct, secure connection between users’ loan files and DocMagic’s family of products and services, enabling users to order, generate, manage, receive and deliver TRIDcompliant documents. “Smart companies like PathSoftware know that TRID compliance, risk reduction and cost control are huge concerns for lenders, and they’re building value by offering solutions to those issues through their technology and that of their partners, like DocMagic,” said Dominic Iannitti, President and Chief Executive Officer of DocMagic. “We’ve had an excellent partnership with PathSoftware’s parent company for many years. We’re proud to continue supporting

them as they introduce new and better solutions to their customers and the industry.” This integration also enables users to access DocMagic’s Total eClose platform, a comprehensive digital mortgage solution that contains all of the components needed to facilitate a completely paperless digital closing. In addition, the integration also accesses DocMagic’s eSign technology so borrowers can electronically sign all documents in a secure, compliant manner. “DocMagic has long been a

By Jonathan Foxx, Ph.D., MBA

Anti-Money Laundering Program—Some Key Questions

JANUARY 2018 n National Mortgage Professional Magazine n

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Question We are unsure of a few anti-money laundering issues. We know that you 42 probably come across some of these issues all the time in your Anti-Money Laundering (AML) testing. Please enlighten us on how to deal with these questions. 1. After the filing of one or more Suspicious Activity Reports (SARs), what do we do if law enforcement contacts us requesting more specific information about the suspicious activity or requesting supporting documentation, and also if a law enforcement agency tells us that it does not intend to investigate the matter reported on the SAR? 2. Do we file the SAR on activity deemed to be suspicious even when a portion of the activity occurs outside of the United States or the funds involved in the activity originated from outside the United States? 3. Should we close an account (i.e., a loan application), if we identify suspicious activity? 4. How do we decide to extend the SAR filing period passed the 30day rule requirement? 5. What should be done during an AML Program test? Answer Over the years our AML tests and risk assessments have given us considerable insight into the FinCEN requirements for residential mortgage lenders and originators.

Your questions are good and reflect the concerns of many financial institutions. Here follows some guidance responsive to your questions. 1. If conduct continues for which a SAR has been filed, companies should report continuing suspicious activity with a SAR being filed at least every 90 days, even if a law enforcement agency has declined to investigate or there is the knowledge that an investigation has begun. Moreover, the information contained in a SAR that one law enforcement agency has declined to investigate may be of interest to other law enforcement agencies, as well as supervisory agencies. 2. Although foreign-located operations of U.S. companies are not required to file SARs, a financial institution may wish to file a SAR with regard to suspicious activity that occurs outside the United States that is so egregious that it has the potential to cause harm to the entire organization. 3. Closing a customer account as the result of the suspicious activity is a determination to make in light of the information available. Filing a SAR, on its own, should not necessarily be the basis for terminating a customer relationship. Rather, a determination should be made with the knowledge of the facts

and circumstances giving rise to the SAR filing, as well as other available information that could tend to impact on such a decision. When faced with this decision, it may be advisable to include the organization’s counsel, as well as other senior staff, in such determinations. 4. SAR rules require that a SAR is filed no later than 30 calendar days from the date of the initial detection of the suspicious activity, unless no suspect can be identified, in which case, the time period for filing a SAR is extended to 60 days. The fact that a review of customer activity or transactions is determined to be needed is not necessarily indicative of the need to file a SAR, even if a reasonable review of the activity or transactions might take an extended period of time. The time to file a SAR starts when the financial institution, in the course of its review or on account of other factors, reaches the position in which it knows, or has reason to suspect, that the activity and/or transactions under

review meet one or more definitions of suspicious activity. 5. The AML Program test should provide a fair and unbiased appraisal of each of the required elements of the anti-money laundering program, including its Bank Secrecy Act (BSA) policies, procedures, internal controls, recordkeeping and reporting functions, and training. The test should consider internal controls and transactional systems and procedures to identify problems and weaknesses and, if necessary, recommend to management appropriate corrective actions. The test also should cover all anti-money laundering program actions taken by – or defined as part of the responsibility of – the designated compliance officer, including a determination of the level of money laundering risks faced by the business, the frequency of BSA antimoney laundering training for employees, and the adoption of procedures for implementation and oversight of program-related controls and transactional systems. A risk rating should be provided to assess continuity over time.

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

heard on the street

into Flagstar’s MeridianLink loan origination system (LOS), LoansPQ. “FirstClose offers a nationwide, one-stop solution to processing home equity loans and home equity lines of credit,” said Bill Carey, Director of Consumer Finance at Flagstar. “We’re looking forward to working closely with FirstClose to provide the best service possible to our customers.” As a result of the partnership, Flagstar is able to order property reports, flood certifications, desktop valuations and full appraisals through FirstClose. In addition, FirstClose facilitates closing and recording responsibilities for Flagstar. “Not only is Flagstar proving to be a great customer, but they are already becoming a valuable partner as well,” said Tedd Smith, Chief Executive Officer of FirstClose. “The Flagstar team helped us perfect our integration into the LoansPQ platform, enabling us to better serve future customers.” Global DMS Integrates With Black Knight’s LoanSphere Exchange

ensuring compliance, cutting costs and dramatically speeding up the appraisal process. “Through this integration, we significantly extend our reach to lenders that use Black Knight technology,” said Vladimir BienAime, President and Chief Executive Officer at Global DMS. “As a result of constantly changing legislation and higher origination costs, an increasing number of lenders are looking

for an easy, cost-effective way to bring the appraisal function in-house. With Exchange, lenders essentially now have plug-and-play LOS integration to eTrac, which completely supports an in-house appraisal panel model, automates the entire valuation management process, and requires little-tono IT resources to maintain.” Black Knight’s Exchange technology provides integration, data management, decisioning support and workflow management to facilitate transactions between lenders and their service providers

through a single, secure online platform. “We are pleased to welcome Global DMS as one of Black Knight’s Exchange integration partners in support of our commitment to reduce the time, cost and complexity to originate loans,” said Tom Peterson, President, Lending Solutions Division at Black Knight. “Mutual clients will be able to access a seamless integration to operate an inhouse appraisal group on a national or regional level.” continued on page 45

Wunderwriters { Title commonly used to describe TMS underwriters because they are so adept at doing things like closing loans in as little as 10 days }

NationalMortgageProfessional.com

We don’t have underwriters at TMS, we have Wunderwriters.

We are TMS. We are on a mission to Grow Happiness

Specialists you have direct access to. Ones who actually

for brokers, borrowers, and, well, everyone. We speak a

return your calls and emails within three hours. The men

different language. We do business in a different way.

and women who take time to solve the puzzles instantly while mere underwriters reject any issues outright. TMS is a Wunderland of Wunderwriters who help deliver TMS

Why let anyone else underwrite your loan? Go to wholesale.themoneysource.com and let us introduce you to our Wunderwriters.

exceptional services.

n National Mortgage Professional Magazine n JANUARY 2018

Global DMS has integrated with Black Knight’s LoanSphere Exchange platform, an online, collaborative technology that connects more than 25,000 mortgage industry service and solution providers. This integration provides a gateway that helps support easy, secure lender access to Global DMS’ comprehensive eTrac valuation management platform from their loan origination system (LOS), such as Black Knight’s LoanSphere Empower and LoanSphere LendingSpace LOS, which are integrated with LoanSphere Exchange. Global DMS’ integration with LoanSphere Exchange will enable lenders to order, check the status in real-time, review and upload completed appraisal files into the LOS. The bidirectional integration streamlines data exchange and facilitates ease of communication between the platforms. This eliminates the re-entry of data from initial ordering through review, thus reducing errors,

continued from page 41

Tony’s Corner

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

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

JANUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

The Mortgage Market Is Shifting: Why You Should Adapt There are shifts happening in the mortgage marketplace, and they’re pretty seismic. Consumers have shunned the olden ways of filling out paperwork and sending documents over fax in favor of using apps and e-signatures. Borrowers aren’t interested in working with the stuffy mortgage banker in a suit and tie; they want to do business with the intouch lender who’s front and center, savvy and smart and doesn’t speak industry jargon. Love it or hate it, the seas of change are roiling in our industry, and any business that hopes to remain relevant ought to adapt or risk slipping into extinction. What does this change look like? Let’s start with the shifting demographics in housing. Millennials buy in Despite the years-long chatter that Millennials would eschew home buying to stay in apartments, young adults under the age of 36 are buying homes, and they’re doing it in quicker numbers than ever before. At 34 percent, Millennials, the country’s largest generation, made up the largest group of homebuyers in 2016, according to the National Association of Realtors (NAR). As rental rates continue to rise, Millennials are taking cues from their parents and finding homes where they can settle down, start families and build equity. Skeptical? Then, take note of a study from Ellie Mae last year which shows that 84 percent of the home loans closed at the beginning of 2017 went to mortgages for Millennials. Millennials aren’t just craving

homes of their own—they’re on the cusp of emerging as the most influential force in the housing industry (TransUnion estimates that 17 million first-time homebuyers will enter the housing market in the next five years). That means endless opportunities await mortgage lenders that understand this generation’s wants and needs. Spare the trees Another facet of change in the mortgage industry is technology. Gone are the days when borrowers were willing to trek to a bank, sit down with a loan officer and spend hours combing over a 500-page loan application. Nowadays, in the age of Amazon, customers want speed and convenience. They want to apply for mortgages online, which is the same way they want to search for homes. Savvy mortgage companies are partnering with Silicon Valley developers, such as Blend, to develop mobile apps and other products that make applying for a mortgage easier. They’re developing products that meet customers where they are, and make applying for a mortgage accessible and less of a hassle. Diversify your C-suite There’s also a shift happening in the workplace. More than ever before, diversity is essential to recruiting and retaining top talent. Plus, it helps lenders establish trust with consumers. The Consumer Financial Protection Bureau (CFPB) released a report examining why diversity in the mortgage industry is paramount. In part, it said that diversity creates space for perspectives that challenge “groupthink” among people with similar backgrounds. It helps

companies tap into new market segments and develop innovative financial products that meet the needs of customers across multiple demographics. And more diversity, at the executive and operations levels, lessens the chance a mortgage company will make tone-deaf statements that offend members of certain communities—a boon for any organization in the age of social media. Company leaders must shift their thinking and stop treating diversity as an industry buzzword that indicts or perceive it as an excuse for employees to bring up uncomfortable topics. Diversity is simply good business. Join the shift I know this because I’ve seen it work. Each year, NAMMBA (which stands for the National Association of Minority Mortgage Bankers of America) hosts a conference, dubbed “Connect,” to bring together some of the biggest and brightest players in the mortgage space. The two-day gathering in Atlanta helps

mortgage bankers of all types learn from some of the best, and leverage networking opportunities to take their business to the next level. NAMMBA’s upcoming conference in April features a who’s who of mortgage industry innovators, including Nima Ghamsari, Founder and CEO of Blend; and Lisa Skeete Tatum, Founder of LandIt, a tech platform that helps women navigate their career paths. Both are prime examples of the shift that’s happening in the lending space: It’s no longer an industry run by white men for white men. The U.S. Census Bureau projects that by 2044, the nation’s minorities will become the majority, and rise to 56 percent of the total population by 2060, versus 38 percent in 2014. As the country’s racial makeup changes, so will the demographic makeup of homeownership. The mortgage industry should embrace and adapt to that change.

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

heard on the street

given Fannie Mae’s Day One Certainty focus on data from the source of truth. Lenders can expect a reduction in fraud, an integrated solution for enhanced origination throughput calculating a borrower’s qualifying and efficiency, as well as an income. improved borrower experience.” “Indecomm is again raising the Lendsnap is integrated with bar for accuracy in income major payroll and tax filing calculation. The integration of companies who provide access IncomeGenius with Lendsnap to borrower paystubs, W-2s, tax moves the automation of income returns and 1099s. The calculation to the point of sale integration delivers a seamless and avoids intermediary and error- data stream, automatically prone input,” said Rajan Nair, pushing authoritative and secure Chief Executive Officer, Financial original income documents and Services for Indecomm Global their underlying data to Services. “This is especially timely IncomeGenius. This process is

continued from page 43

Indecomm Honored With Tech Award, Collaborates With Lendsnap

Equity Prime Mortgage Opens New Loan Assistance Center

Equity Prime Mortgage has announced the opening of a Loan Assistance Center in Lilburn, Ga., designed for continued on page 58

Joyitude { The unexpected attitude adjustment one experiences after discovering a new way of doing business at TMS, bringing about happiness for you, your borrowers, everyone }

NationalMortgageProfessional.com

• Submission to our Wunderwriters in as fast as 24 hours • Turntastic turn times in as little as 10 days

• KISS – Keep It Super Simple - the TMS LOS enables simplicity and 24/7 transparency into your loan process

• Highly experienced Loanologists provide expert client guidance

• Closernistas make sure you are Pink Approved and cleared to close

• Endorphinators stay with your loan every step of the way to make sure it moves through the system ﬂawlessly

We are TMS. We are on a mission to Grow Happiness for brokers, borrowers, and, well, everyone. We speak a different

• You do the LE or your TMS Endorphinators can

language. We do business in a different way. Experience

• Pink Select Pricing – we reward your preferred 200K+

Joyitude today by going to wholesale.themoneysource.com

loans with preferred pricing — 700+ FICO, 80% LTV

n National Mortgage Professional Magazine n JANUARY 2018

Indecomm Global Services has announced that its Digital Learning Division has won a Bronze Award from the Brandon Hall Group for Best Advance in Unique Learning Technology for its Yellow Platter Learning Suite (YPLS). The YP Learning Suite is an integration of all our earlier tried, tested, and continuously enhanced learning platforms into a single framework that provides a seamless workflow to any organization to create, curate, consume, collaborate, catalogue, campaign, crowd source, manage, and track learning and performance interventions across multiple devices. YPLS includes an authoring tool, learning management system, mobilebased micro learning platform and performance support tool as well as a publishing portal. This recognition adds to the several Brandon Hall Group Awards that Indecomm has received over the last couple of years. “Yellow Platter Learning Suite is yet another innovative digital platform from Indecomm that aligns to our commitment of transforming businesses with digital technology solutions,” said Anesh Korla, Head of the Digital Learning Division at Indecomm. “It is crafted on the basis of our considerable experience in the learning domain to streamline learning delivery and management at any organization.” The Brandon Hall Excellence in Technology Awards are determined by a panel of international and independent senior industry experts in conjunction with Brandon Hall Group senior analysts and executives. Indecomm Global Services has also announced the integration of its IncomeGenius automated solution for income calculations, with Lendsnap, a POS solution that collects borrower income and asset documents directly and securely from their source. The integration with Lendsnap provides IncomeGenius clients direct access to a borrower’s income documents and data needed for accurate income calculations. With IncomeGenius, Lendsnap clients have access to

more secure than email or scanned documents. It is also faster and offers a more accurate path through underwriting.

Drilling Down on Negative Equity Issues

Restructured Refinances With Government Seconds Could Help Four Million-Plus Homeowners BY PAM MARRON

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NationalMortgageProfessional.com

ore than four million homeowners still have mortgages where negative equity is more than 125 percent. Nearly one million of these homeowners have home equity lines of credit (HELOC) attached that are preventing a refinance of the first mortgage. Restructuring these loans for a new conventional mortgage is possible by reducing the first loan to 80 percent LTV and attaching new fully amortizing secondary financing up to a 95 percent combined loan to value (CLTV). But it is not enough if the client cannot get funds to cover a needed payoff above 95 percent CLTV. Both the Fannie Mae DU Refi Plus and the Freddie Mac Relief Refinance Home Affordable Refinance Programs (HARP) allow government entity funds to replace secondary financing with no maximum CLTV. Using government entity funds, like those in the Hardest Hit Fund (HHF) program, could provide two benefits by enabling negative equity homeowners to both refinance a first mortgage where no refinance has been possible and replace dangerous resetting interest only HELOC’s where an increase in payment can be as high as 400-plus percent.

Fannie Mae and Freddie Mac have HARP financing for existing negative equity conventional mortgages. Portfolio conventional mortgages with negative equity have never had a refinance available. Unless the loan to value is below maximum caps needed for refinancing with other loan types, most homeowners with portfolio conventional mortgages have been unable to refinance. And even when the first mortgage is below the maximum LTV, attached secondary financing that exceeds the combined loan to value requirement also blocks a refinance. Prior to the housing crash, attaching hybrid first and secondary financing was common, and secondary loans were often interest-only HELOCs. As of Sept. 30, 2017, there were nearly one million HELOCs in the U.S. where the combined loan to value of the first and secondary financing is above 101 percent. Whether a first mortgage or a HELOC, interest-only loans reset to a fully amortized payment on a reset date, typically at seven to 10 years. Upon a reset, the remaining loan balance is spread over the remaining term of the initial loan. Here’s an example of how dangerous this is: On a 15 year HELOC for $50,000, if lower interest only payments are all that has been

paid during the first 10 years with no extra funds applied to the principal, the full $50,000 balance can be amortized over the remaining five years left on the HELOC term! And when the HELOC has negative equity lenders are reluctant to refinance, but they will modify the loan if a hardship exists and often only after the homeowner goes delinquent on the payment. Government entity Hardest Hit Funds were released by the U.S. Treasury in 2010 and provided 18 states and the District of Columbia with assistance for homeowners trying to stay put in their homes after the housing crisis. Unique criteria can be applied with these funds and in Florida on the Principal Reduction program, mortgage delinquency was not required to receive funds. In fact, the homeowner had to be current! Additionally, criteria for a lower rate on a new secondary replacement loan could be offered when the currently paying negative equity homeowner opts

for a shorter loan term, thereby escalating equity. Best of all, the homeowner could stay current, keep credit in good shape and pay this loan back! Only a government entity second loan is needed … Government entity secondary financing to replace existing secondary loans could help nearly one million negative equity homeowners who have resetting interest-only HELOCs. If government entity secondary financing also covers any loan amount needed to get the first mortgage below required maximum LTVs needed for a first mortgage refinance, more than four million negative equity homeowners could refinance with any lender at today’s historically low interest rates. Please go to CloseWithPam.com/Restructured -Refinance-That-Includes-Govt2nd-Could-Help-Remaining-4Million-Still-Underwater/ for more information. Stay tuned.

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

We are TMS. We are on a mission to Grow Happiness. Endorphinators. Wunderwriters. Joyitude. These words describe what you experience at TMS. And it’s paying off. Clients who know TMS are happier with TMS. And we can prove it. Net Promoter Score (NPS) measures how happy clients and customers are with us. Our TMS NPS is 86.9%. That’s higher than respected brands like Apple, Amazon and Google.* We know of no lender that ranks this high. This means that 90% of our customers are highly engaged with us, and promoting TMS.

Join us in making the dreams of more than a million Americans come true.

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The Money Source Inc. NMLS #6289, 135 Maxess Rd., Melville, NY 11747. This is intended for the exclusive use of mortgage professionals only and is not intended for distribution to or use by consumers. This information is not considered an advertisement for consumer credit pursuant to Regulation Z, 12 C.F.R. 1026.24. *SOURCE: satmetrix.com | Satmetrix 2017 Consumer Net Promoter Benchmark Study

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We are TMS. We are on a mission to Grow Happiness for brokers, borrowers, and, well, everyone. We speak a different language. We do business in a different way.

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So Growing Happiness makes good business sense – for you, your borrowers and for us.

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CampusT The Numbers Game f you have been in sales for any period of time, you have heard the expression “Sales Is a Numbers Game.” This is said so often to salespeople that most have become numb to this expression. This is similar as to when you were a child, and for some of us even as adults, we have people in our lives that repeat themselves and we just give an auto response by saying something like “I know” or “I understand,” even though there is really no real comprehension of what was said to you. You heard the words, but you did not heed the meaning. I remember when I was growing up, every single night, my mother would yell down from upstairs to make sure that we checked that the toaster was

unplugged. Without fail, this was a nightly ritual from upstairs to downstairs. This all stems from when my mom once heard that a toaster caused a house fire. For this reason, my mom would always want confirmation that we had verified ours was not plugged in. However, it got to the point that whether it was myself or my brothers, it was an auto response that either we checked it, or were going to check it. And I’m sure as you read this, you are imagining how many times we went to bed without ever verifying that it was in fact unplugged. My mom had her ritual of calling down to remind us, and we had our ritual of responding that we would take care of it. The reality was that from the perspective of my brothers and myself, we just

responded automatically without any real comprehension of what we were being asked to do. It did not matter that we had checked it 1,000 times before, as we grew older, we just became numb to the constant reminder from my mom. In selling, we have managers, company owners, sales trainers and success coaches that all will repeat how numbers play such an important role in the success of great salespeople. However, until an average or underperforming Loan Officer really decides to ask themselves the question, what numbers are they really talking about, the behavior of the Loan Officer will not change. They will not make more sales calls, they will not make more phone calls, they will do little to

no additional marketing. The reason is simple … if you don’t know what the critical numbers you need to measure are, then you have no basis to measure your sales performance improvement. You will hear people say that your performance is your paycheck. As true as that is, your paycheck reflects the end result of your actions and performance, but it gives you zero feedback on what you specifically need to change to improve your paycheck. What I mean by this, is if you: l Do not know how many sales calls you make per day. l Do not know what your lead to loan conversion ratio is. l Do not know what your pullthrough from loan application to closing is. You have no idea where you may be lacking.

with your numbers is that getting appointments is not where your issue is. Your challenge is converting the meeting into a business relationship. With an understanding of exactly where you are missing the mark on success through the measurement of your numbers, you can then search for the exact strategies necessary to increase your effectiveness in the meeting that leads to moving a relationship forward. One of the most common challenges I hear from the clients I coach is that they have meetings with agents, but most of them never go anywhere. It amazes me to this day when I ask new clients how many appointments have they been on? How many relationships have been established? How many appointments they think went well but nothing came of it? And so on … As I dig deeper into what it is

happens to a Loan Officer’s motivation when they are unable to get rapid feedback on their progression? You know the answer as well as I. They stopped doing it because they’re not receiving instant gratification or recognition of progress. Knowing and measuring your numbers in all you do relating to lead generation, lead sources, lead conversion, pipeline pullthrough, and anything else which involves your interaction as a Loan Officer in generating business gives you benchmarks to immediately recognize what you must improve, and how quickly you are improving. Getting consistent reinforcement of growth and improvement creates more motivation to improve and grow. It feeds on itself.

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

n National Mortgage Professional Magazine n JANUARY 2018

Many Loan Officers know, in the back of their head, that they need to make more sales calls. However, if they don’t fully understand what it is in the sales calls their already making that is causing them not to succeed at the level that they need to, then they will associate making additional sales calls as to enduring more pain in growing their business. Of course if you don’t make enough critical mass in marketing and prospecting calls, you will not succeed. There is no denying that fact. But if you are making sales calls, and you really dive into what your numbers are as far as calls, appointments, conversion, etc. Then, you are getting feedback on what area(s) you may be lacking in. For example, if you recognize that you meet many real estate agents, but the relationships never seems to go anywhere, then what you are identifying

By Ron Vaimberg

exactly they are doing, I can figure out what it is that is missing from their presentation that needs to be added or modified. Without question, they will experience growth in their relationships from what we discuss. However, if from the beginning they never understood what their current numbers are, then we have no real basis to measure intermittent growth. The only thing we can do is wait for the final scorecard of closed loans. The challenge with this is that the time from implementation of the new strategies, to seeing the actual benefits, can be weeks or even months. For most people, that is too long a period of time to be on sure of how they are actually doing. If you had to guess, what do you think

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sTalk

How My Lawn Taugh Lesson About Loans By Brian Kent

JANUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

f you’ve never had a lawn, or if you’ve had a lawn but you have a gardener that handles everything for you, you may not know what crabgrass is.

Crabgrass is an invasive grass species that can overtake lawns in just a few months. If you’ve had a lawn and fought the battle with crabgrass, I’m sorry to hear that and you’re in good company. I knew my lawn had a little patch of it, but I didn’t realize at the time how invasive it was and I basically ignored it. Then it spread. One day I looked out back and realized my lawn was 40 percent crabgrass. Then, I finally treated it, and now my lawn is filled with potholes where the crabgrass died and was removed. Trust me … it’s not a good look for a lawn. Had I treated it upfront, of course, it would have cost me next to nothing. A simple $10 spray at Home Depot would have done the trick. Instead, I had to buy five big bags of pellets, wait weeks for it to work, then dig out all the dead and dying clumps, and now I have a crappy looking yard until the new grass grows in (another expense, grass seeds). And, to boot, an unhappy kid who cannot play in the backyard. So why is any of this relevant … and why should you care about my lawn, my crabgrass or my kid? Because, just like with my lawn, if small issues on loans are not handled upfront, they too will spread and get much more costly (and ugly) to “treat” later on in the process. Which is one reason why for our company, we came up with a solution that we call our “1003 Supplement.” It is

basically a collection of all the questions that the borrower should be asked on Day One, which will help you see small issues and handle them before they become bigger issues, which are tougher and more expensive to solve. We ask some very basic questions such as: l Do you have solar panels on your house? Are the panels leased or were they purchased? l Will your marital status be changing in the next 60 days? l Do you plan on buying or leasing a car in the next 60 days? l Do you plan to go on vacation in the next 60 days? l Do you have deposits on your bank statement greater than [insert amount]? To us in the mortgage industry, these are obviously critical questions and we assume if the borrower isn’t volunteering the information, it means there is no relevant information there. The only thing we should assume is that borrower does not know they need to tell us about these things and that we must coax it out of them. We must ask the right questions upfront to ensure that issues don’t crop up later on. We’ve all had at least one situation where a borrower is in the middle of a transaction, then suddenly tells you, “Oh, I’m going out of the country tomorrow for two weeks. That’s not a problem … right?” A situation like this can obviously throw a wrench in the process. Then, when the loan closes late, it’s your fault … of course!

Brian Kent is General Manager of C2 Financial Corporation, an award-winning Mortgage Broker/Banker with 400 originators strong, based in in San Diego.

ght Me an Important s

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HMDA+: The Next Bi Lending Threat on th

Big Fair the Horizon By Alan Bercovitz

or good reason, lenders have been concentrating their fair lending compliance resources on the changing HMDA fields that must be collected beginning Jan. 1, 2018. That’s the date lenders will start capturing their individual loan file and aggregate results for 25 new and 14 modified data points. They will report their results no later than March 1, 2019 and regulators will then be able to conduct an expanded initial fair lending assessment on every covered lender without having to set foot in a single office. Any statistically significant variations in treatment between protected and nonprotected classes may trigger more detailed examinations. It’s important to remember that all of these fields were still subject to fair lending compliance before they became HMDA reportable. This data was part of the so-called HMDA+ universe, data that lenders always see during the mortgage production process, but was hard for anyone to evaluate because if it was captured it typically wasn’t retained in an easily searchable format. While each of these new and modified data points will now individually pose fair lending risks, they will also create additional issues related to some of the existing, unchanged ones. For example, Action Taken is one reportable field that remains in its present form. Because it has been difficult for regulators to compare in detail any variances in results between classes when the Action Taken was a Denial, it was usually a sufficient fair lending defense if a lender could provide a business reason to support any individual underwriting turn down. Now, beginning Jan. 1, 2018, the Reason For Denial is a modified data point and the regulations require that the reason(s) a lender reports must be specific and accurately describe the principal reason(s) the financial institution denied the application. Debt-toIncome Ratio is an example of a specific reason the CFPB illustrated as a sufficient explanation. However, Debt-to-Income Ratio is itself one of the new data points. So now a regulator will start to dig deeper if an institution is showing lower Debt-to-Income Ratios for protected class members as the primary Reason For Denial compared to those reported for non-protected class members. So, while we can see that regulators will get a somewhat clearer picture into the mortgage approval/denial process, we also know that there is still an enormous amount of HMDA+ data that goes into many Denials that remains difficult for lenders to produce (often regarding individual files and certainly in the aggregate) and for regulators to consider. The danger is that regulators will now be able to “get the scent” of the “real reason” behind any Reason For Denial and will therefore be better equipped to begin to dig into the vast remaining trove of unreported HMDA+ data to search further for any fair lending violations.

What triggers most fair lending complaints? Consumer discrimination complaints caused by the poor handling of application data during continued on page 59

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The Mortgage Epidemic Nobody’s Talking About A new, more sophisticated type of fraud is growing at an alarming rate By Thomas Cronkright II Esq. & Lawrence Duthler Esq.

A threat which is nearly impossible to detect What is it about identity-based mortgage fraud focused on funding that makes it so insidious? As we learned ourselves, and as the

experts point out repeatedly, it is not only the number of attempted wire fraud scams increasing dramatically. In fact, the fraudsters themselves are showing increasing sophistication; are growing international in nature and, above all, are demonstrating that they are patient, calculating and know the mortgage process (down to the smallest local customs) as well as industry professionals do. All of this makes it that much easier to impersonate an authorized party to the transaction. Especially in the hustle-and-bustle that we know as the typical settlement and closing. Additionally, our industry is scrambling to keep up with the new and more sophisticated fraud schemes we face. Quite candidly, many of us are completely unprepared for what is already an amazingly difficult malady to detect and prevent. Perhaps the best way to demonstrate this is to diagram a growing type of fraud called “phone porting.” Phone-porting fraud is a great example of the ability of fraudsters to adapt (and quickly) to the mortgage industry’s efforts to thwart them. Here’s how the typical phone-porting fraud works. Most schemes begin with the theft of Personal Identifiable Information (PII) of an authorized party to the mortgage transaction. In this case, the perpetrators exploit social media and online resources to obtain personally identifiable information (PII), which includes mobile telephone numbers, email addresses, names and physical addresses. From there, the criminals will use the procured PII to

impersonate the rightful owner of that PII and convince a communications carrier to “port’ or re-direct all activity intended for that e-mail or phone number to a device the fraudster actually controls. Here’s where the evolution comes in. Using the “ported” technology, the fraudsters then intercept phone calls and text messages including two factor authentication codes that are designed to confirm the identity of the person involved in a transaction. In other words, by the time the fraud has reached this stage, the fraudster has already bypassed an anti-fraud best practice (call and verify). From there, the crime falls into place. Acting under the assumption of a “confirmed” identity, a person or institution wires money to the cyber- criminal rather than the intended recipient. It’s one thing to call and confirm the identity of a person whose voice you recognize. However, if you are calling someone you’ve never met, it’s hard to know if it’s the right person or a fraudster that picks up the phone. The good news is that help is on the way. New technologies are emerging that will bulk up the authentication process. But until those solutions are widely available, common sense must prevail. In spite of the intense pressure at closing, this is the time to slow down a bit. Use diligence. Practice healthy skepticism. Above all, we hope this will serve as a reminder to the entire industry, and that lenders, originators and service providers alike will take up the effort to raise the collective awareness of identitybased fraud. The problem is becoming epidemic, and it will take an entire industry to thwart it.

Thomas W. Cronkright II is the Co-Founder and CEO of Sun Title and CertifID in Grand Rapids, Mich. CertifID is a guaranteed identity verification system designed to prevent wire fraud in the real estate transaction. Lawrence R. Duthler is President and Co-Owner of Sun Title Agency and Co-Founder of CertifID. He is a regular speaker on title and real estate subjects as well.

n National Mortgage Professional Magazine n JANUARY 2018

The threat no one’s talking about Perhaps because fraud has long been a risk of doing business in the mortgage industry, it seems that the call to action against it is not really being heard. Just by the numbers alone, however, it’s apparent that the threat is not a static one. Instead, the occurrence of fraud, especially identity-based/wire fraud, is growing exponentially. According to the FBI, there were $5.3 billion in losses due to business e-mail compromise in 2016. That same year, the number of wire fraud scams reported by title companies to the Internet Crime Complaint Center (IC3) rose 480 percent (also reported by the FBI) with only 10-15

percent of actual frauds being reported through the IC3 so the actual number is much higher. We are expecting updates to those numbers for 2017 this spring and expect another year of shockingly high increases. If the numbers don’t convince you that identity-based mortgage fraud is a serious threat, perhaps a story will change your mind. The co-authors of this piece know this from experience. Fraud was something we thought would only happen to other companies …until it blind-sided our own business. In Spring, 2015, our Michigan-based title agency was the victim of an identity-based fraud which cost $180,000. We then spent the better part of two years investigating the circumstances—and, in the process, learning just how sophisticated cyber criminals have become. As is the case in so many examples of wire fraud, ours involved a cashier’s check; a wire request after that check was deposited … and a check which bounced a few days later. Over the course of that fraud, we came to learn that the perpetrators included a cast of criminals from around the world including a German citizen working in Europe; a Nigerian national participating from Canada and several “money mules” the role of whom was to launder the cash on tight timeframes. We’re pleased to say that some of the participants are now in prison, and we were able to recover about $140,000 of the stolen funds. But not without a tremendous amount of work and collaboration. What’s truly frightening about our scenario is that we are a bestpractices firm. We have multiple policies in place to deter and prevent many different types of fraud. All were utterly useless in our example.

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new year is upon the mortgage industry, and for the first time in ages it feels as if things are (somewhat) back to “normal.” No sub-prime/REO crisis. An abating regulatory blitz. A fairly healthy purchase market. For many of us, it’s a relief to focus on good, old-fashioned business. But while the talk at conventions and headlines in the trade publications may focus on increases to the federal interest rate or the hottest residential purchase markets, there’s another story emerging that could dominate the conversation for months or even years. Mortgage fraud, in all of its various forms, is certainly nothing new to the origination industry. Fraudsters have long been seeking (and finding) ways to siphon off mortgage funds for decades. However, over the past few years, fraudsters have begun to focus their attention on perhaps the most vulnerable part of the mortgage transaction: the closing. And while title agents and real estate professionals have been on the frontlines of these increasingly complex scams, it will take the attention of originators (brokers and lenders) and, in fact, the entire industry to stop the rising tide of identity fraud and financial loss.

JANUARY 2018 n National Mortgage Professional Magazine n

Credit Plus has announced that it has integrated with Floify, a provider of mortgage automation software. The integration will enable Loan Officers using Floify to streamline their mortgage process and automatically collect a borrower’s credit report from Credit Plus upon submission of a loan application or on-demand directly from their Floify account. Credit Plus’ integration with Floify also eliminates the hassle of collecting credit reports for loans by empowering borrowers to digitally submit their consent directly to lenders with just a few clicks. “We’re excited about our new partnership with Floify because of the time and money savings it offers,” said Greg Holmes, Managing Partner at Credit Plus. “Through the integration with Floify, Loan Officers can realize greater efficiencies and speed up the mortgage

Loan Vision team has announced a partnership with The Mortgage Collaborative, a growing organization with a powerful network that supports members by offering a wide range of membership benefits, tools, and resources to accommodate the ever-changing needs of the mortgage industry. “Loan Vision’s dedication to understanding the developing business needs and evolving functionalities of mortgage lenders perfectly aligns with the mission of The Mortgage Collaborative,” said Rich Swerbinsky, Chief Operating Officer of The Mortgage Collaborative. “Loan Vision truly values the art of collaboration within the mortgage industry, and their dedication to serving the mortgage industry will provide our Lender Member companies with a great business partner.” The Mortgage Collaborative’s range of online and offline educational and networking resources for its lender-members includes conferences, Webinars, and podcasts that strive to keep members current on the latest industry trends. “Collaboration is a key part of working in this industry, and we’re constantly looking for more opportunities to connect with organizations that hold similar values,” said Martin Kerr, President of Loan Vision. “Partnering with The Mortgage Collaborative opens the door to a brand new opportunity to reach lenders and keep their best interests at the forefront.” Academy Mortgage Named a Best Place to Work by Glassdoor

Academy Mortgage has been honored with a Glassdoor Employees’ Choice Award, recognizing the Best Places to

Mortgage Professionals to Watch

l Waterstone Mortgage Corporation has announced that Ed Vaccaro has joined the company as a Regional Vice President of Retail Production and Jodi Johnson as Vice President, Risk and Audit at the company’s corporate office. Vaccaro will be responsible for overseeing operations and retail growth throughout northern California, while Johnson will be responsible for managing agency exams and audits, overseeing the risk and control environment, managing and resolving exam

GRANDY

l Planet Home Lending LLC has named Kimberly Grandy Vice President of Human Resources. Planet Home Lending has also named Mike Lee as its Senior Vice President of National Production. Lee is also a member of the company’s Executive Committee.

MURRAY

Loan Vision Joins The Mortgage Collaborative

and audit findings, and directing several internal improvement initiatives.

l Mortgage Network Inc. has announced that Linda Murray has joined the company’s Portland, Maine, branch as a Mortgage Loan Officer serving the southern Maine region.

MURRETT

Credit Plus Partners With Software Provider Floify

approval process, which is a winwin for borrowers and lenders.”

Work in 2018. Academy ranks 18th on the list of large companies, which includes household names like Facebook, Bain & Company, In-N-Out Burger and Google. Academy Mortgage is the only home loan lender on the list of 100. The company’s overall rating is 4.5 out of 5, with more than 350 reviews. The Employees’ Choice Awards program, now in its 10th year, relies solely on the input of employees, who voluntarily and anonymously elect to provide feedback on their jobs, work environments, and companies via Glassdoor. “We can’t thank our employees enough for sharing their reviews of Academy on Glassdoor,” said Academy Mortgage Chief Executive Officer Adam Kessler. “Companies that have employees who love where they work are more productive and more engaged. This translates into a competitive advantage when it comes to attracting and retaining talent. Further, this award is a symbol of our employees’ belief in our commitment to excellence and our vision to Inspire Hope, Deliver Dreams and Build Prosperity.”

VACCARO

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borrowers to begin the loan process and to receive assistance from the company’s mortgage loan professionals. It is part of Equity Prime Mortgage’s outreach in Gwinnett County in the Greater Atlanta area. “Our new Loan Assistance Center is a place where firsttime homebuyers and other borrowers who might not be familiar with the mortgage process can come for help and guidance,” said Tim Arrington, Vice President of Sales at Equity Prime Mortgage. “The location is in the heart of Gwinnett County, which has a large Hispanic population, a primary focus of ours.” Potential borrows will be able to fill out pre-qualification forms on their mobile device or on a loan officer’s laptop and receive information on loan types and interest rates. Bilingual loan professionals will be onsite to work with Spanish-speaking customers. “Equity Prime Mortgage is happy to be a part of the Gwinnett community and looks forward to helping borrowers achieve the dream of homeownership,” Arlington said.

continued from page 45

JOHNSON

heard on the street

l James L. Murrett has been named President of the Appraisal Institute. Murrett is currently Executive Managing Director for Compliance and Quality Assurance at Colliers International Valuation & Advisory Services. He previously served on the Appraisal Institute’s national Board of Directors and Strategic Planning Committee and as Chairman of the Finance Committee. l Mid-Island Mortgage Corp. has hired seven experienced loan officers as part of its latest corporate expansion initiative, enhancing its mortgage origination capabilities along the East Coast. The newly appointed loan officers include Vincenzo Carlisi, Roger Megale, Madeline Sussman and Alice Wong in the company’s Westbury, N.Y. headquarters office. Joining continued on page 92

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the mortgage production process often trigger fair lending issues, exams, and lawsuits. The MLO promised one set of terms and the borrower is ultimately offered different ones or is rejected outright when it turns out that the MLO and underwriter were not on the same page regarding one or more pieces of consumer data. Prospective borrowers who are initially told they are â&#x20AC;&#x153;all setâ&#x20AC;? understandably end up feeling their Denial was due to their membership in a protected class. Potential fair lending violations from not following agency guidelines All lenders strive to produce every mortgage to meet the applicable Agency guidelines as well as any overlays the lender has chosen to apply. This is the data that the author will define as â&#x20AC;&#x153;nondiscretionary.â&#x20AC;? When a lender does not treat every applicant in the same manner when considering this non-discretionary data (which is part of the HMDA+ universe) they leave themselves open to a potential fair lending violation. Here is a recent example of a

mortgage application where a lender could have unwittingly created such a violation. The borrower wanted to remove funds from their business to use as part of the downpayment for their mortgage transaction. The Fannie Mae guideline states that â&#x20AC;&#x153;Business assets may be an acceptable source of funds for the down payment, closing costs and financial reserves when a borrower is self-employed and the individual federal income tax returns have been evaluated by the lender, including, if applicable, the business federal income tax returns for that particular business (non-Schedule C).â&#x20AC;? While the wording of this guideline could be clearer, the accepted meaning is that because a Schedule C business does not require a separate income tax return, there is no need to examine a business tax return that does not exist. The Loan Officer submitted the file to underwriting where the file was rejected because the underwriter claimed that the guideline meant that it was not possible to use assets earned within a Schedule C business in

conjunction with any residential mortgage loan. And for good measure, she told the Loan Officer that Fannie Mae never allows an exception to this guideline! Thankfully, the Loan Officer asked for guidance on a mortgage industry discussion board and was advised that the underwriter had a mistaken interpretation. Eventually, the Loan Officer was able to get the decision reversed and the mortgage closed, but if the MLO was new or hadnâ&#x20AC;&#x2122;t persevered the file could have easily been declined. Even though this was simply a case of underwriter error, if the applicant happened to come from a protected class, there could have been a potential claim of Disparate Impact if other non-protected class consumers had their files properly underwritten under this guideline. Also, if the rejected consumer then applied at another mortgage firm who properly applied the guidelines, the original lender could have faced a fair lending violation of Discouragement. To help lenders prevent such violations, Indecomm has developed a product to help ensure that lenders provide equal treatment to all their self-employed borrowers. During a recent Webinar, they discussed an example regarding a complicated

set of tax returns analyzed by three extremely experienced and trusted underwriters. Each of these underwriters calculated a different amount of qualifying income. While the variances were small, one could expect the differences would be greater if less seasoned underwriters are involved and the greater the variance the larger the threat becomes for a claim of Disparate Impact. Underwriter discretion: A much bigger fair lending threat Underwriter discretion (another subset of HMDA+ data) that is often the underlying cause behind many Reasons For Denial poses a great danger because most lenders do not have policies on underwriter discretion and those who do have rarely reduced them to writing. Loan Officers learn hard lessons after they originate and send a file to underwriting that they can rightfully claim meets all of their companyâ&#x20AC;&#x2122;s published guidelines, yet still runs afoul of one of the â&#x20AC;&#x153;off the booksâ&#x20AC;? rules that our industry typically teaches to loan officers in the same experiential manner that wilderness tribal groups pass lessons onto their young as each continued on page 84

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Grooming Leaders From Within By Patty Arvielo

Clear the path ahead One of the top three factors in keeping Millennials on your team is providing them with the

opportunity to continue learning and growing. They want to see a clear path ahead. They want to know they have the opportunity to advance their career. That’s why we developed the corporate initiative, “If you want to grow, we want to know.” It gives our employees the chance to let our management team know they want to move ahead. Any time during the year, employees can submit a request and let us know their career goals. We then work to train them and place them in a position based on their desired career path. To develop leaders from within, you have to have a means of identifying talented people who want to move forward. Then, if they are a good fit, it’s important to give them the ability to continue progressing. Otherwise, you’ll lose them. Open door policy Keeping and developing your leaders long-term means being willing to keep an open door policy. Your employees have to feel comfortable enough to come to you and say, “In five years, this is where I see myself.” If she’s an originator who wants to eventually move up into a leadership role as a Regional Manager, then she has to know that she can talk to you about her future.

That’s how you develop longterm leaders from within. Your team has to feel like they can approach management about issues that are important to them. But that comes through building a connection with your employees and developing a rapport with them. It happens when you create an environment where open communication is welcomed. When you do that, it builds trust with senior leadership and when employees have a good connection with their leaders, it keeps them connected to the company. Otherwise, when employees feel stagnant or face on-the-job challenges, they’re not going to discuss it. It then becomes difficult to keep good people long-term and develop them into leaders. Yet, when you have an open door policy, it lets employees know you care and are willing to work to address their situation. It also gives you the ability to implement changes that can make their work culture better. Company culture A good culture is fundamental when you’re developing leaders from within. You have to create the right type of environment where leaders are empowered to grow. That’s part of what has helped continued on page 62

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Training and mentoring This new generation of Millennials makes up the largest

segment of the U.S. workforce, but many have never worked in mortgage banking. They will be newcomers to the industry. With no background in mortgage banking, they’re going to need training in order to succeed. That means if you want Millennials on your team, you are going to have to develop programs where you bring them in and train them yourself. You’ll have to provide them with the platform and tools they’ll need to grow. Even though they don’t need a college degree, they’ll need to learn the ins and outs of the industry. You’ll have to offer on-the-job training that combines classroom-style learning with hands-on application. The goal? Once they make it through an introductory phase, they should have practical experience, be licensed and ready to assume a larger role in your company. That’s when mentorship is going to be key. Whether you place them in a supportive role where they can learn from seasoned veterans or you create a mentorship program, you have to find an avenue to continue developing their potential.

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s you look around, you’ve probably noticed that our workforce is aging. Our average Loan Originator is in their mid-50s and will soon be retiring. At the same time, our average homebuyer is getting younger. We’ve reached a pivotal point in our industry where now more than ever we have to begin grooming future leaders. As Loan Originators, Branch Managers and executive leaders, it’s up to each of us to take responsibility for the future of our industry. We all play a part in raising a new generation of leaders. If we don’t start developing new leaders now, we won’t have anyone who can relate to and serve our new consumer. But where do you find tomorrow’s leaders and how do you begin developing them? We’ve started preparing for tomorrow by developing our future leaders from within. Anyone who wants good leaders must be willing to invest the time in grooming them. But grooming good leaders starts with having a good strategy. Not only do you have to be prepared to train and mentor but you have to create the right culture where anyone has the opportunity to move up the ladder.

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grooming leaders from within

us keep good leaders on our team. We’ve created a culture that’s team oriented, that feels like a family, and we strive to make our work atmosphere fun. Even though mortgage banking is business, we want our employees to enjoy coming to work each day. We’ve developed a team spirit where people are willing to help each other. When you have this type of atmosphere, leaders are able to grow because they know they can collaborate and look to fellow team members for support if necessary. But in order for your culture to work it has to be based around your values. Otherwise, it’s not going to be authentic. Our family-like atmosphere works because it’s a genuine reflection of who we are. I’ve attended weddings for my employees. Why? Because I’ve built quality relationships with

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them and they’ve become like family to me. When you build a culture that’s isn’t genuine, your employees recognize it and it’s difficult to groom future leaders in that type of environment. Diversity Your future leaders should feel like they’re a genuine part of a real team and they should be able to envision themselves working on your team in the future. That’s why diversity plays such a big role in developing good leaders within. When you build a diverse leadership team, it allows anyone who comes onboard to see themselves moving ahead. As they see others rise from a diverse background, they realize that they can do the same thing. As that happens, you begin attracting talented people to your team who you can groom as leaders.

But just like with culture– diversity has to be genuine. Creating a diverse culture isn’t about simply promoting someone with a different background so you can have diversity within your company. Rather, it’s about genuinely recognizing and celebrating the accomplishments of employees from various backgrounds. By doing that – new leaders take notice and they too want

to work at your organization because it instills belief that they too can grow and excel within your company. Looking ahead Preparing for tomorrow by developing good leaders today isn’t only the right thing to do but it makes good business sense. If we want our industry to be successful in the future, then we have to look ahead and make plans for it now.

Patty Arvielo is President of New American Funding, a national mortgage lender and servicer that funds approximately $1 billion in home loans each month. Patty is deeply involved in the National Association of Hispanic Real Estate Professionals (NAHREP), where she serves as a member of NAHREP’s Corporate Board of Governors. Patty serves on the Diversity and Inclusion Committee and the Consumer Affairs Advisory Council for the Mortgage Bankers Association (MBA). In 2017, the Consumer Financial Protection Bureau (CFPB) appointed Patty to serve on its Consumer Advisory Board to provide the agency with expertise on a broad range of consumer financial matters and emerging market trends.

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FEATURED MONTHLY EMPLOYMENT OPPORTUNITIES

Account Executive Baton Rouge, Cleveland, Fresno, Louisville, Milwaukee, Sacramento and St. Louis We’re looking to more than double our sales force this year to take advantage of the fastest growing segment of the mortgage industry. If you’re an experienced Wholesale Account Executive or have ever considered becoming one, come talk to us today. • Plan, develop, and execute sales strategy to meet established goals in assigned territory • Secure new and maintain current relationships with originators, through both a wholesale and correspondent channel • Market Angel Oak products and programs to the mortgage and real estate community • Serve as liaison between brokers and operations team With an industry leading reputation for delivering an extraordinary mortgage experience, we are also looking for underwriters and other operations positions to support this growth in our Atlanta headquarters. Regardless of where you are located, if you are interested in joining this fast-growing company in the new, dynamic Non-QM space, please contact John Wise at john.wise@angeloakms.com or 818-391-4131.

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The Perfect Fit Developing a flawless hiring and onboarding process takes time ne of the wisest decisions a mortgage lender can make, in terms of hiring effective leaders for its branches, is to give the interviewing and onboarding processes the time and attention they deserve. Honest and regular communication, helpful interaction with field support team members, and a detailed interview process are all essential for making a smart hiring decision that benefits everyone involved. The more precise you are with your recruiting and hiring process, the more likely you will find someone who is a good, longterm fit for your team. Whether you find candidates on social media, at industry meetings/conferences, or via current employees’ recommendations, there are many ways to determine if prospective branch managers are the right fit for your company.

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The interviewing process Once you have found a promising candidate, consider how you will handle the initial conversations with that person. A few helpful tips to keep in mind are: l Make listening a top priority: Whether you are having a phone conversation or are meeting with the candidate in person, it’s essential to allow that person to speak as much as possible. The more they talk, the more you can learn about their focus, priorities and team members. They may be a top producer at their current company, but unless their professional “identity” matches up well with your company’s culture, they probably won’t be a good fit. l Pinpoint their current challenges: Every candidate will have specific challenges or issues that they cannot solve with their current

employer. The key is to identify what those challenges are. It’s imperative to be honest and forthright with a candidate about whether or not your company will be able to offer solutions for their challenges. The transparency in your discussion should go both ways; the candidate is

workplace. Remember that the overall goal of your questions is to determine what their ultimate career goals might be. l Don’t rush: Hiring a new branch manager for your company is not a task that should be done in the span of a few days or even a few

“Honest and regular communication, helpful interaction with field support team members, and a detailed interview process are all essential for making a smart hiring decision that benefits everyone involved.” assessing your company just as much as you are evaluating them. l Develop deeper-level questions: Be prepared for your conversation by drafting a list of detailed questions. Make sure you include a variety of production and management/coaching questions, and stump them with a couple of situational questions. This will help you determine how they would react to certain challenges or opportunities in the

weeks. Get to know the candidate, and make sure to answer all of their questions, in return. If you feel confident about your conversations and want to move forward with the process, it’s time to invite the candidate to the corporate office for a visit. The corporate office visit Even if everything is coming up roses with a candidate over the phone, it’s often a wise decision to invite them to the

By Kevin Allen

corporate office. By immersing them in the corporate culture, you will get an even better idea of whether their goals, personality, and work ethic will mesh well. Before the candidate arrives, take the following into consideration: l Be prepared: You’ve already asked questions over the phone, but equip yourself with another specific list of questions. This is not the time to wing it. You may feel like you know the candidate fairly well, but it’s still important to maintain professionalism and organization throughout the process. Another important part of being prepared is to ask the candidate if they will have certain questions during the visit. For instance, if they have an inquiry about a specific loan program, you can ask a member of your operations team to do some research and prepare a detailed answer to that question when the candidate comes to visit in person. l Assemble the troops: For a prospective branch manager, it’s beneficial to give them one-on-one time with a manager from each corporate department. If they make the decision to join your company, they will likely be working with these individuals on a regular basis. l Promote honesty: Ask the candidate to be honest with you, and make sure you are as transparent as possible with them. It doesn’t benefit anyone to hide or misrepresent information that could be a deal-breaker for a mutually-beneficial professional relationship. After the visit has concluded, be sure to follow up with your corporate employees who interacted with the candidate. Ask for their candid feedback, and take this into consideration as you make a final decision. Onboarding and ongoing support Hiring a new branch manager

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(or an entire new branch) is a huge undertaking. The interview process may be over, but the training and support are just beginning. Clear, regular communication and honesty are as important during this phase as they were during the recruiting/hiring stage. Here are some final bits of advice for handling the onboarding and ongoing support processes with ease:

Bringing it all together While it will certainly take time and effort to create and implement an effective branch hiring and onboarding process,

it can actually save a great deal of time, in the long run. The key is to remember that this process cannot be rushed. The more time spent in conversations, and the

more people who are involved in the decision, the higher the chance that the newly formed connection will remain a mutually beneficial and long-term one.

Kevin Allen is Senior Vice President–National Sales Development for Waterstone Mortgage, based in Pewaukee, Wis. He may be reached by e-mail at KAllen@WaterstoneMortgage.com.

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l Manage branch set-up: Depending on the size of the branch, it may be best to send corporate trainers to provide instruction on-site. However, in the digital age, this may not be necessary for smaller branches. Webinar instruction can be as helpful and interactive as in-person training, especially if the branch team is already familiar with your LOS. Make sure your new team members are trained on operations policies, file flow, technology, and marketing – to name a few. l Check in periodically: It’s imperative to have an adequate field support team at your corporate office. These individuals will be immensely helpful to new branches as their employees navigate the first days of employment. Your field support team should touch base with a new branch manager daily, initially, and then weekly for the first couple of months. Not only will this help your new branch manager address any challenges that pop up, but it will also make him or her feel supported and valued, which is essential. Also consider scheduling formal “check-ins” via phone call for the 30-, 60and 90-day marks. l Evaluate your process regularly: Even if your onboarding process is fairly fluid, there is always room for improvement. Ask new branch managers for their suggestions on how you could make your process even better. As you continue tweaking your onboarding procedures, utilize checklists and stay organized. l Stay in touch: No matter how much time has passed, it’s smart to maintain regular communication with your

branches. Not only will this help the field team members feel appreciated and respected, but it will also help you inform your corporate employees of any important updates or changes at the branches.

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Preparing for Spring? Make Training and Recruiting a Priority How lenders can select, manage and train a successful team By Kevin Watson

he winter months are traditionally a period of preparation for the coming Spring and Summer buying seasons. The rush of borrowers and prospects that indicate the beginning of that all-important time of year will be here quickly, and now is the time for lenders to refocus their efforts internally and determine where they can improve their operations and acquire additional resources or support. Traditionally, this translates into hiring new employees and refocusing on training. As lenders look to next year, determining where to expand operations and train talent for the long-term, priority must be given to recruiting techniques, scaling and training efforts in order to help lenders, their Loan Officers and borrowers achieve success at this pivotal time in the mortgage industry.

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Selecting talent, not recruiting The face of homeownership in American is changing rapidly. Millennials, first-time homebuyers, minority groups and women account for some of the fastest-growing borrower segments, and there is an immediate and necessary need for lenders to reflect this shift in their hiring tactics–only by doing so will lenders reach these new markets. Additionally, over the next 10 years, it’s estimated that the industry will need to replace roughly 200,000 loan officers, whose average age hovers right at 54-years-old according to Zillow. A new generation of mortgage officer will need to be ready and prepared to service these accelerating demographic markets. Similarly, Hispanic households represent 52 percent of the growth in U.S. homeownership since the year 2000. The year 2016 saw the largest one-year spike in Hispanic owned households in

over a decade, at the same time the overall U.S. housing rates fell for the 12th consecutive year, according to the recent Hispanic Ownership Report put out by the Hispanic Wealth Project and the National Association of

individuals for their local branches or lending operations, lenders must focus on “selecting” talent and finding those perfect fits for their role. This means not only finding capable and skilled employees, but also identifying

“Rather than focus on recruiting individuals for their local branches or lending operations, lenders must focus on ‘electing’ talent and finding those perfect fits for their role. This means not only finding capable and skilled employees, but also identifying those who will fit in with a company’s unique culture.”

Hispanic Real Estate Professionals (NAHREP). Additionally, in the past 24 months, single women have made up 17 percent of homebuyers, compared to just seven percent of single men, according to the National Association of Realtors (NAR). While recruiting may get employees in the door, it does not always equate to an effective, well-run team. Rather than focus on recruiting

those who will fit in with a company’s unique culture. One important point to consider: a lender can always train someone to be an efficient mortgage professional, but there is no changing a person’s personality or longterm goals. Scale and manage the person, not the process We operate in a competitive marketplace that is linked to an

unpredictable economic environment. Everyone understands that turnover happens and there are better years than others. It is painful, however, to spend time, resources and personnel on training and developing good employees only to lose them to something that was entirely within a lender’s realm of control. One way of retaining the best and brightest is to build bridges between experienced and newer employees and between the lender and borrower. Invest in Millennial employees to meet the growing surge of Millennial borrowers, while at the same time, utilizing senior professionals to guide employees in the right direction. With nearly half of all new mortgage professionals between the ages of 18 and 34, it is now more important than ever to leverage experienced industry veterans to get ahead of the rest–and don’t forget, if the average age of a loan officer is 54, how many more years do they have until retirement? The clock is ticking. Younger employees provide a fresh (and often topical) approach to reach new customers and utilize technology, so not only can older employees teach younger colleagues, but new employees have something to offer as well. Once a lender has confirmed that their team members are a cultural fit, they should encourage communications across all lines of business. In this way, lenders can utilize the traditional knowledge of their senior staff and combine it with the modern approach of their younger employees. By leveraging the institutional knowledge already in place, employees can benefit from both their real world experiences and access to information that would have otherwise taken years to acquire. When lenders recruit strong members of their team, they want to retain them and, as is so often the case, communication is key. Lenders can and must share their goals and company mindset with employees to ensure each of them has a positive role to play

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in the overall business. With greater levels of organizationwide collaboration, the workplace can become a cooperative learning environment for all.

season with prepared, primed and qualified branch managers who can serve as mentors to

well-trained, well-educated and well-equipped mortgage professionals.

Kevin Watson is Manager of Churchill Mortgage’s Middle Tennessee branch. He may be reached by phone at (615) 767-5181 or e-mail Kevin.Watson@ChurchillMortgage.com.

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Training and tools for success The industry is saturated with mortgage professionals trying to distinguish themselves; lenders can help by providing innovative tools to help them improve how they conduct business with consumers. In this way, lenders can provide a suite of resources to strengthen a mortgage professional’s efforts in engaging borrowers nationwide, and potentially drive borrowers down the path towards debt-free homeownership. The powerful combination of technology and educational tools can empower home loan specialists as they identify, communicate and serve borrowers before, during and after the mortgage process. And more importantly, this is the industry right now. It is no longer a choice, and lenders don’t have a lot of room to opt-out. It is important to be a part of the growing tide of omni-channel delivery, and a successful organization will incorporate these initiatives as a competitive differentiator and toolset for loan officers. Ideally, providing a mix of established customer outreach methods with an innovative digital presence can directly correlate to continued growth and success. One example of this, is to give newer employees the opportunity to script out and role play various customer scenarios with co-workers. Oftentimes, peers are more critical than a traditional customer, which forces employees to think on their feet as they manage, an albeit ‘fake,’ situation. Exercises such as these help employees build confidence and create the best possible presentation for customers at the beginning of their career, rather than navigating the minefield that is customer satisfaction with little to no insight into best practices for setting expectations with different borrowers.

When Loan Officers are confident in the organization they work for, the professionals they work with and the tools at their disposal, they can spend less time worrying and more time building their network. While there seems to be no shortage of Loan Officers looking to make the leap–underscoring the competitive nature of this business–lenders can embrace the momentum of the coming

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Defining Your Company’s Culture By Stacy Mohr

ulture is a major buzzword these days. Companies brag about it, hire based upon it and spend marketing dollars around it. But how does a company’s culture come to be? Is it set by the company’s founders? Is it determined by human resources? Does it change over time? And how is a company supposed to document this mysterious culture? Think about it … you know your company’s culture, right? Most of us can take given qualities and filter them into buckets of “fits our culture” or “doesn’t fit our culture.” Many of us can interview a candidate and determine whether or not they are a good culture fit for our organization. We “feel” culture, but how many organizations have gone to the extent of defining their culture in writing? It’s actually quite challenging, specifically because culture is intangible. Why is defining a company’s culture important? The experts say that hiring a good culture fit is a top priority. Other qualities can be taught, but culture … that’s a very difficult (sometimes impossible) thing to teach. More importantly, hiring someone that doesn’t fit your company’s culture can be a very costly mistake. Not only do you risk wasting money hiring and training the wrong person, but if the new hire is drastically different than your desired culture, they can drag others around them down the wrong path, or even cause your good employees to leave. Many executive teams have taken this to heart and have attempted to define what makes a good culture fit for their organization. However, this approach has one major flaw: It looks at culture from the top down. In fact, it’s very likely that this sort of definition includes wishful thinking on the part of management. It will take the shape of what the executives want the culture to be, not what it truly is. Instead, a company’s definition of their

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culture should come from the very heart of the company’s culture itself: its employees. In 2017, our company decided to formalize our culture in the form of written core values. To do so, a group of senior managers created a list of dozens of words that could potentially be used to describe these values. Some seemed obvious, some were wishful thinking, and others were very generic. We sent this list of words to all employees in the company and asked them to rank the top five words that described our company. We also left a freeform section so employees could include any descriptions that we may have left out. The results came in. The top five words weren’t a surprise at all. We were happy to see that our employees chose words that we felt described our organization’s culture well. But then we noticed a trend in the freeform section. Over and over, we kept seeing the same word used by employees across the company. We could see that our staff felt something here that our own management team had never defined. The message our employees shared with us was our company cares. Wow! How did we miss that one? We definitely didn’t disagree with this statement. It’s just that certain parts of a company’s culture can be taken for granted over time. This discovery led us to the foundation of our company’s core values: MWF CARES. We were even able to take the top five words that were chosen by our staff and turn CARES into an acronym (with a little help from a thesaurus). The resulting Core Value statement is “MWF CARES about our Community, Attitude, Reputation, Employees and Service.” Imagine if we had tried to roll out a definition of our company’s culture without getting input from our staff. We would have been missing a really important piece! Surveying employees about company culture can yield pleasant surprises. But what

happens if your survey yields an unpleasant surprise? What if a company’s true culture does not fit with what its leaders envision? You really have two choices: change your culture, or change your employees. If you choose to change your culture, know that you have a lot of hard work ahead of you, but the reward is worthwhile. However, if you choose instead to change your employees, that will almost certainly result in failure. Changing employees without changing the culture is a no-win proposition. Now, that doesn’t mean that the steps to change your culture won’t include making some employee changes, but simply changing employees in the hopes of creating a culture transformation is misguided. How do you change a company’s culture? It’s not as simple as writing a culture wish list and calling it your culture. Instead, it starts with documenting what your culture is now, and then defining what you want it to be. It takes an honest conversation with employees to say you want to go from Point A to Point B. It takes buy in, especially from management. Then, it takes discipline on the part of management to provide consequences for employees who choose to stand in the way of this change. Finally, it takes recognition, rewards, and celebrations for changes that get you closer to your goals. It doesn’t sound like a fun

process, but the alternative of languishing in a poor culture is much less fun and can be downright detrimental to a company’s success. If you do feel your company needs a culture shift, it may be best to enlist the help of a professional. Whether your culture is great now, or whether it needs some work, it is important to check in on it occasionally. Although culture is difficult to change, it is not impossible. This is especially true if undesirable culture traits exist at the higher ranks. Employee surveys like the one described above are a great way to gauge what your culture looks like to your staff. However, surveying your employees too often can dilute the effect. Culture evaluation surveys are best performed every two to three years since changes do not happen rapidly. Such surveys will be relatively useless, though, if your current culture is one with a lack of trust. Honest feedback will be hard to come by if those surveyed do not trust the intent or the anonymity of the survey. So, how about you? Can you clearly define your company’s culture? If you don’t already have it in writing, will you take the time to do so this year? Hopefully any surprises will be pleasant ones. Don’t see the benefit? Consider the recruiting material that could be created from this exercise. If you do have it in writing, are you checking in periodically to make sure it still fits? Regular evaluations can help ensure that your positive culture sticks around for many years to come.

Stacy Mohr is Senior Vice President of Capital Markets for Mountain West Financial Inc. Stacy joined Mountain West in 2006 as the Head of the Accounting Department. She currently oversees the Capital Markets, Post Closing, Servicing and Human Resources Departments. Her education and experience is primarily in accounting, finance and management. Stacy holds an MBA from California State University, San Bernardino and is a Certified Mortgage Servicer by the Mortgage Bankers Association (MBA).

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know when they’re ready to reﬁnance or buy a home without them telling you ﬁrst? At Caliber Home Loans, Inc. we care about what happens to YOUR customer well after closing. In fact, unique advantage to partner with you and create a customer for life through repeat business Let us help you reconnect with your past borrowers. Contact your Account Executive at Caliber or visit us at www.caliberwholesale.com.

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Caliber Home Loans, Inc., 1525 S. Beltline Rd Coppell, TX 75019 NMLS ID #15622. 1-800-401-6587. Copyright©2017. All Rights Reserved. Equal Housing Lender. For real estate and lending professionals only and not for distribution to consumers. This communication may contain information that is privileged, conﬁdential, legally privileged, and/or exempt from disclosure under applicable law. Distribution to the general public is prohibited. (DEC2017_NMP)

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Caliber retains the servicing for 96% of our loans. Most wholesale lenders don’t do this. This gives us a

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Connecting with your borrowers at exactly the right time can sometimes be challenging. How will you

••••••

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Non-QM Lending Is Key to Relevance of Mortgage Professionals By John Wise hroughout the history of mortgage financing, the organizations and individuals who thrive are those who are relevant to the times, the marketplace and their customers. In 2018, the most relevant originators, correspondents and investors are likely to be the professionals who take advantage of the growth potential for non-QM lending. During my 30 years in the mortgage industry, I have seen new and different challenges arise as business cycles change, rules and regulations are altered, and consumer preferences vary. Although each generation of originators faces distinct obstacles, staying relevant is always the

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key to overcoming them. Yet, relevance in mortgage banking has never been a constant. It is the frequently changing pawn of economic forces, human aspirations and regulatory impulses. To succeed at any given time, each funding entity and originator must anticipate the trend most likely to drive growth in the near term. They must make the most of that trend while it delivers the greatest benefit to homebuyers. At the same time, they must constantly be attuned to marketplace forces that may again alter the relevance of certain products and services. For the foreseeable future, non-QM mortgages promise to be more relevant to growth in home mortgage lending than many other factors. Originators

who pursue the millions of consumers needing non-QM loans will be mining an untapped source of new customers. Mortgage bankers who enter the wholesale arena or develop correspondent channels will be able to take advantage of systems developed over the last four years by industry pioneers who have proven non-QM loans to be safe and high performing. Investors will find increasing opportunities to participate in secondary markets. In 2014, Angel Oak Mortgage Solutions introduced non-QM mortgages immediately after the Consumer Financial Protection Bureau (CFPB) issued its final “Ability-to-Repay and Qualified Mortgage Rule,” which excluded masses of potential homebuyers from accessing agency loans. These creditworthy borrowers include self-employed individuals, retirees, small business owners and those who have had an unfortunate credit event. Initially, conventional lenders and the news media stigmatized non-QM loans as being like the sub-prime mortgages which helped cause the Great Recession. However, today’s manually underwritten non-QM loans have performed extraordinarily well and proven to be solid performers for investors. Slowly but steadily they have attracted and satisfied the needs of borrowers. During the last four years, volume of non-QM mortgage originations has grown from nothing to an estimated $6 billion in 2017. This is less than four percent of around $1.7 trillion in mortgages originated in 2017. The growth potential for non-QM mortgages has been untapped as mainstream lenders have continued to focus on refinancing and conventional lending while the economy grew slowly and steadily since the recovery began in 2009. Since 2014, non-QM lending was certainly relevant to the many deserving borrowers who could not

obtain agency loans. Unfortunately, too few mortgage professionals believed that either these consumers or the loans designed for them were relevant to their own success. Those of us who are mortgage industry veterans know how quickly things change and should recognize that rising interest rates have put brakes on refinance volume. In addition, tighter inventories and higher home prices will require successful real estate and mortgage professionals to serve assetstrong consumers who can afford to buy pricier homes than many of the steadily employed families who are the lifeblood of conventional lending. Indeed, non-QM borrowers qualify based on their assets, down payment ability or proof of income, albeit from sources not accepted by agency rules. For 2018, industry analysts are predicting that total originations will be down slightly, refinancing will continue to plunge, and nonQM lending will surge. According to S&P Global Ratings: “We expect the nonQM market to double, or even triple, in size in 2018. We also think that as it continues to evolve and become more liquid, securitization will become more efficient and spreads should tighten.” The S&P report affirmed that, as reported by Jacob Gaffney in Housing Wire, “despite misrepresentations in the media, they (S&P experts) say, the non-QM loans of today are not simply a reincarnation of non-prime or even subprime products which proliferated before the Great Recession.” The need for non-QM lending to become relevant was confirmed by Laurie Goodman, director of the Housing Finance Policy Center at the Urban Institute: “A lot of borrowers are being squeezed out of the market. Clearly, there is a need for more nonQM mortgages.”

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deliver buying power to innumerable individuals who are otherwise unable to purchase a home. You are likely to find that simply adding non-QM products to your typical lines of business is not as profitable as focusing on the latent growth potential of the non-QM segment. Businesses that recognize and take full advantage of timely innovations are usually more relevant than those that

continue relying on standard products and methods long after

they have become irrelevant to the marketplace.

John Wise is the Business Development Manager for Angel Oak Mortgage Solutions. He has 30 years of experience in finance and real estate and more than 15 years of direct experience leading sales and operations for a wholesale, nationwide lender. Prior to Angel Oak, John worked at Goldman Sachs in their Commercial Mortgage Securitization Group. John has experience in retail and wholesale mortgage sales and operations, as well as expertise in both the conventional and non-prime mortgage space.

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The growing relevance of non-QM lending has been hard won by those of us who have championed these products since they were first launched. Angel Oak founders Mike Fierman, Sreeni Prabhu and Brad Friedlander foresaw an opportunity to fill a gap in the marketplace and launched a new product category in 2014. They ventured that liquidity and performance would come over time. But, creating the product did not give it relevance. Results and changes in market conditions have combined to prepare the non-QM sector for its importance that will likely mushroom in 2018. Mortgage professionals should decide now whether they can grow (remain relevant) over the next three to four years without handling non-QM mortgages. How will you replace your refinance business as interest rates continue to rise? Where will you fill your pipelines as overall mortgage originations decline? How will you serve high-value customers as baby boomers retire and rely on investment income, and more workers become self-employed? Where will you turn to find mortgage products for less-common jumbo and interest only loans? Non-QM mortgages may be the single answer to all those questions. We believe that non-QM lending has the potential to be a $100 billion plus segment of our industry. Because it is just now gaining mainstream acceptance, mortgage professionals at all levels must consider how nonQM lending can make the difference between middle-ofthe-road performance and excellent results. Mortgage professionals can mine opportunities for growth in retail marketing, correspondent channels and as investors. Growth opportunities include adding non-QM products to a diverse lending portfolio, developing correspondent channels or even participating as an investor. However, we have learned that our most productive and profitable relationships are with those mortgage pros who have become specialists in these products Consider these as game changing products that

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Workplace (Mis)Conduct By Eric “NOT related to Harvey” Weinstein ow that I got your afraid? The news is not about some attention, let’s talk casual joke a boss may have said, about mortgages. but real sexual assault and workplace intimidations. This is not about just sending a female co-worker a suggestive emoji by mistake. When you read this, you will He said he was deeply worried probably be hip deep into the New about making an inadvertent sexual Year, but for me, right now, it is the remark or offending them. I told him, holiday season. I have been making then, that is simple … “Don’t make the rounds at the Realtor holiday any sexual remarks!” Why are you making sexual remarks to a parties, waving the flag and customer in the first place? Try reminding them to send me thinking before you say something. business. Here is a conversation I had which That is always good advice. If you don’t know by now, the I found deeply disturbing … I was speaking to a male Realtor workplace is no place for that sort of friend of mine who sends me talk. Take it from me, a few seconds business occasionally. He was of uncomfortable laughter at a blue bemoaning the fact he is now scared remark is not worth the risk that it to death to speak to female clients might possibly be taken the wrong because of all this sexual harassment way. Been there, done that. Just news going around. I asked him why. don’t do it, even if it is a kick-ass He said he was terrified of someone funny remark that sounds gutgoing after him for sexual busting hilarious in your head. harassment. I said, I didn’t Pretend there is a filter between your understand. Why is he frightened? Is brain and your mouth. Don’t say it. No one wants to hear that sort of he forcibly kissing his clients or grabbing them as they try to get away banter. I think the problem is not the from him? Really, why would he be

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The NMP Daily Email Newsletter is your source for breaking news, insights and tips. Get free access to full articles including the hottest industry headlines, featured articles and other mission critical mortgage industry stories delivered to your inbox each day. The NMP Mortgage News Ticker is a daily news feed that gives you a snapshot of the hottest mortgage news stories from around the web. Stay informed of the most recent headlines and blogs, all compiled into one convenient daily email. Your State Speciﬁc Digital Edition Want to stay informed on a more local level? The contents of our state e-editions include all of the content from our national publication plus state-specific mortgage association information, including the President's Message, which highlights local issues, such as regulatory and legislative matters, along with the state calendar of events. Mortgage News Network (MNN) features regularly scheduled and special event video programming with industry experts sharing insights that impact your business today and in the future. MNN provides market forecasts, proven sales and marketing strategies, interviews with industry leaders and more.

pandemic proliferation of workplace sexual situations, it is merely that a lot of the men at work are painfully sophomoric. They are more than socially awkward. The news and the “Me Too” movement should be reserved for really horrific situations of sexual intimidation where bosses or celebrities take advantage of women due to their power. He is a Realtor with a customer, for goodness sake. He has no power. He is the lowest on the food chain. The client could just as easily never call him back or change Realtors. That is not sexual harassment, that’s just a person being an idiot and losing business. You hear similar stories happening in the gay community. That shows, it is not just a man on woman (no pun

intended) crime, but a Power Play. “Power corrupts … Absolute power corrupts absolutely,” said 19th Century British politician Lord Acton. He got that one right! Are we so screwed up as a society that the minute we get any sort of power, we feel obligated to abuse our subordinates? Here is an idea … let’s try not to do that. I guess, with a last name like Weinstein, I am a bit over sensitive to the whole sexual harassment news. I have tons of faults, but this has never been one of my problems. I am scared to death of women, naturally. Putting the moves on someone is nothing I would ever consider doing. I am too shy for that. I used to tell socially awkward jokes, but have since learned to let my brain override my mouth. Some jokes are better left unsaid. But still, sometimes, I just cannot stop myself.

Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. Eric is semi-retired, doing mortgages by referral only. He may be reached by phone at (703) 505-8692 or e-mail EWeinstein4U@gmail.com.

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Finding the Right (Cultural) Fit By Helen Brown

n the mortgage industry, it’s no longer safe to rely on rates or loan programs to set yourself apart from the competition. In general, we all offer relatively the same options for our customers. What sets us apart from our competitors is our service levels and experience. If you meet and exceed expectations and create raving fans, you will get referrals, which means more business. But how do you get the right people to create and execute this service excellence platform? It all comes down to corporate culture. Corporate culture goes beyond the products a company sells or the services it provides. Really, culture isn’t about what work gets done, but about how that work gets done. Your corporate culture should be distinct from other companies rather than mimicked. Culture is driven by the values of the company and is generally what holds everyone in the organization together. Authenticity is the key to a strong, differentiated company culture, which in turn contributes to a strong, differentiated brand. Quality candidates can tell if you are lying about your culture or trying to copy someone else’s, so if you want to attract the right people, be truthful about what it is like to work for your company. If your culture is built on authenticity, it is easy to be honest about it. Just as candidates must understand what makes your culture different and how they can contribute to it, companies looking to hire individuals that fit with their culture must first identify and understand it themselves. There are several questions you can ask yourself to determine your company’s culture, which can be broken out into three categories: Organizational Structure, Expectations, and Atmosphere/Environment.

belief and behavior systems appear congruent with organizational culture rather than your own personal beliefs. Having a poor understanding of your organization’s culture and hiring someone who is a mismatch can be damaging. The outcomes of a poor hiring decision can include stress among other workers, employees questioning the company’s and/or their own values, decreased productivity, creation of negativity, erosion of culture, and lower morale. Employers need to constantly shape a work culture that will ensure the success of the organization, so they need to hire people who can help build, drive, and maintain culture.

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l Organizational structure: How is your business structured? How are decisions made and communicated? What opportunities are available for advancement?

“When employees can identify with your company’s culture, they feel greater job satisfaction, increase their performance levels, are more committed to the company, and are more likely to stay with the company rather than seek employment elsewhere.” How do you reward your employees when they succeed? l Expectations: How many hours do you expect your employees to work? What are your minimum performance standards for your origination team? What policies do you expect your employees to follow? What types of employees excel in your organization? l Atmosphere/Environment: What are the organizations beliefs, values, underlying assumptions, attitudes, and behaviors? What are the core principles of the founder(s) of the organization? What are the unspoken and unwritten rules for working together? Your mission statement is a good place to start when answering these questions about your company’s culture. Filling your organization with people who are a good cultural fit provides more positive outcomes, both for the

employees themselves and for the company as a whole. When employees can identify with your company’s culture, they feel greater job satisfaction, increase their performance levels, are more committed to the company, and are more likely to stay with the company rather than seek employment elsewhere. When employees are dedicated to reaching the company’s vision and they share the company’s values, they work to further the interests of the company and are more dedicated to reaching company goals. If you are a part of hiring someone—whether they are in operations, origination, or even all the way up to senior leadership—avoid confusing personal similarities with cultural fit as this can result in a homogeneous workforce. The values and attributes that make up a strong organizational culture are reflected in a richly diverse workforce. Be sure to only hire candidates whose

Screening for culture Employers need to dedicate time determining which candidates are the best fit for the organization. First, develop a recruiting and screening process that has a focus on cultural fit. Start with your job postings. Not only do you need to clearly communicate the required hard and soft skills, but you also need to communicate the culture of your organization. You want to make sure that potential candidates know what kind of experience they can expect before they even submit their application. Once the candidate has decided that they want to apply for your open position, ask them to complete a prescreening assessments or phone interview to determine whether or not they would be a good cultural fit. It is critical that, when using this approach, you use validated assessments that meet legal and professional standards. Focus on assessments that work for your organization and the position(s) you’re hiring for. For example, if you’re hiring loan originators or regional sales managers, use an assessment that targets salesrelated qualities that make every member of the sales and origination team productive and successful. Having a tailored assessment will help identify sales candidates that already have the same attributes as your top sales people who already

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Job structure and work style How would your coworkers describe your work style? Describe a role in which you were most productive.

Work environments Describe the work environment in which you work best. What are the most positive aspects of your previous work environment? During every stage of the hiring process, it is important that you accurately describe the culture of the company so candidates can filter themselves in or out based on how you portray the company. If they do not see a fit with their own values or beliefs, they may not continue or even apply. It is important that the company promotes itself based on how the culture actually is–don’t lure

culture is that it remains constant in the face of change. A person hired based partly on his or her fit with an organization’s culture is more likely to continue on as a

valuable company resource, even if the position he or she was originally hired for ceases to exist. In fact, an effective organizational culture actually

Helen Brown is Director of Human Resources at Inlanta Mortgage Inc. A native of Australia, Helen moved to Milwaukee, Wis. in 2007. She is a certified Professional in Human Resources (PHR) with a decade of human resources experience and nearly 15 years of banking and finance experience. She is also a member of both the Society for Human Resource Management (SHRM) and the Society of Human Resources Professionals (SHRP).

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Managerial relationships When thinking of an organization in which you would thrive, what are three to five expectations you have of that organization’s senior leadership team?

candidates under false pretenses. When you identify what makes the organization successful, you will then know what to look for during the selection process. For example, if the organization recognizes total team performance versus the contributions of one individual, then someone looking for personal recognition might not be a good fit. While job demands and requirements constantly shift, a defining characteristic of

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work at your company. Also, don’t pass over a candidate who is perfectly aligned with the core values of the organization and can be trained for someone who just has the required “credentials.” While all positions require a certain set of skills and experience, which can be taught, you cannot teach someone how to react to challenges or how to work well with others. This is especially true if you are considering a candidate who does not have prior mortgage experience. If they have a general knowledge of the types of tasks involved (such as data entry and customer service for a junior processor), you can teach them about the mortgage aspect of the position. Again, your prescreening assessments and interviews will help you determine if they have the aptitude to do the job well and be a cultural fit. The remainder of the interview process enables you to go past the resume, open the conversation, and focus on what type of employee they are by asking behavioral questions for examples of their work. This is very effective in assessing cultural fit. You want a candidate to go beyond simply regurgitating their resume. Focus on asking questions in these three (3) key areas:

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Whose Grass Is the Greenest? By Shirleen Von Hoffmann

â&#x20AC;&#x153;Inches make a champion.â&#x20AC;?â&#x20AC;&#x201D; Vince Lombardi, Hall of Fame Football Coach, 1913-1970

Ask yourself; â&#x20AC;&#x153;Why would a champion want come and work for me and this company?â&#x20AC;?

he AT&T Golf Tournament comes to my town every year, for four days. The average margin of victory during these tournaments, for the last 25 years, is less than three strokes. Less than a one stroke difference per day. One stroke between winning and losing. Every company wants the champions, we know they bring in the GREEN, but are you ready to recruit and retain champions? Letâ&#x20AC;&#x2122;s talk about a few strokes you can add to your presentation to become a company with the green grass that the champions are looking for.

Is the grass greener at your company? When seeking the very best, you need to build a campaign thinking about what you have to offer them. Are you ready to speak to them in a language that attracts them? You must know, in advance, their needs, wants and â&#x20AC;&#x153;must havesâ&#x20AC;? and then be ready to talk about and honor those things. This will be a long-term business relationship, so you need to take it seriously. Not just for the first months of their employment, but for the long haul. Many make this mistake and give all their attention upfront, but thereâ&#x20AC;&#x2122;s no substitute for the long haul. The good news is,

champions donâ&#x20AC;&#x2122;t like to hop around. Itâ&#x20AC;&#x2122;s hard to move large volume and can become very damaging for their business. With that said, if you take care of these top producers, they will be around for a long time to come. Making that commitment to take them on goes further than just putting them in a branch, sending them to training and letting them fly. You will be a critical part of their success for the entire time they are with your company. You will be in a solid relationship with them, so be ready for a deep commitment and you will be greatly rewarded. The bad news is, if you donâ&#x20AC;&#x2122;tâ&#x20AC;&#x2122; commit and keep your promises, thereâ&#x20AC;&#x2122;s many other companies out their vying for the business they bring and making bigger and better promises to get them.

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Do you interview well? Top producers will most likely have done their homework on both you and your company. They will ask you where you expect your company to be in 10 years, your monthly closings per month, who are your top producers and whether or not you have an award programs for top producers. They will want to know those thresholds, benefits, compensation and bonuses available to them. They will want fine details about specialty products, pricing, underwriting and also may ask if they can talk to upper management and employees about the quality of the company. All of which you should be ready for and are typical in a meeting. They will want to know your vision for their business and how you see it going forward. If you want to stand out and attract top producers, you must cultivate an atmosphere in which they thrive. You must be just as good on your sales feet as they are on theirs. Before you step out to recruit your perfect candidate, make sure your organization is truly ready to receive them with

competitive compensation packages, benefits, systems and an aggressive â&#x20AC;&#x153;Sales Come Firstâ&#x20AC;? attitude. My advice is to take these things I am about to give you and come up with a marketing and presentation package that addresses these in detail. Hereâ&#x20AC;&#x2122;s what it takes to recruit them (making your grass greener) l Discovery: Have great discovery questions that you have practiced and memorized, so in your initial meetings you have them talking 80 percent of the time and you are busy taking notes about their needs, wants and dreams. You are competing with many other companies and your success will hinge on who speaks their language, wins trust, builds confidence and is interested in the future. Asking, listening, retention of details, execution and follow up will be how you can stand out from the rest. l Brand and name recognition: The good news is, you donâ&#x20AC;&#x2122;t have to be the biggest name in the business and actually some top producers prefer midlevel and smaller companies because they can mold their own world and donâ&#x20AC;&#x2122;t have the restrictions of a large company. l Relationships and trust: At the core of great relationships are Trust, Rapport, Confidence and Support. Be good at building rapport and trust, quickly. Trust is 80 percent of the relationship. If you gain trust, you will be in relationship with them. Be ready to talk a bit about yourself, your accomplishments and what you are made of. What makes you a great manager? They will need to know you have their back and you have what it takes to support them. They are strong, you have to be stronger in ways that matter to them. I went to work for many managers because I knew them in advance and I looked up to them. I would never go to work for a person who had less

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Once you have them, how to retain them (keeping the grass green) l Branding/marketing: Branding at onboarding will be important to them, so will marketing and establishing themselves quickly. Make sure to have a plan with your

volume production with the top producer. You are their partner. You have to be ready to drop everything when needed to get their problems solved, whatever those problems may be. You have to help them grow, challenge them, support them and be a partner in their business. Whether its team set up, team growth, processing, underwriting, funding, pricing support, and or day-in/day-out

management support for problems that may pop up, a top producer needs to know that you have their back. The relationship between you and your champion will be both rigorous and rewarding. l Onboarding: Especially in the beginning, make sure they have full on support and a positive onboarding experience. Get them as much continued on page 78

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marketing team for a quick execution of a full-scale marketing plan prior to onboarding so they can hit the ground running. That means as soon as the license is activated, they have full marketing pieces and cards in their hands, ready to go! l Support: It can be lonely at the top. Sometimes a branch manager or regional manager is the only other manager that will share the burden of large

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strengths than myself. I had to know I would be fully supported. It’s very important. Their trust in you, your ability and your mutual relationship will be 50-70 percent of their decision to come and work for your company. It is a fit: You should consider if they fit in your company culture, your branch and or your team? All of these are super important questions when considering bringing on a big producer. Their personalities can fill the room and take over your space, so will that work and how will it work? So, use your instincts and ask a lot of questions to discover if this is a good fit, first. Try to not to let the money of having them, influence you. Can they fit in your team and will your team get along? Do you have what it takes to support them, the time and most of all will you enjoy working with them? All very important considerations. Products: Having a wide array of products is essential to maximize their customer needs. DAP, jumbo, government and one-time construction, as well as your normal FNMA/FHLMC products lines, are necessary. Be ready to discuss the fine details of your products as they are always looking for an edge they can use in their marketing. Pricing: Though it doesn’t have to be the best, it needs to be in the game. Since they do a ton of business, they will have more pricing challenges as a leader. Be ready to discuss a plan for them to overcome these challenges quickly using win-win strategies for them and your company. Pay: Be prepared with an extraordinary compensation package that is reflective of the volume they bring, current and competitive in the marketplace and honor it, no matter what.

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whose grass is the greenest?

support as you can. It’s like mixing a fine wine with the right food for an exquisite experience. You want them to immediately feel like a part of the family and have an exquisite experience. You know the way around the company, but they don’t, so make sure they have everything they need at their fingertips. Giving them a list of who to call for different needs and having each person on that list, call them, in advance, to explain how they can help them, will help tremendously. Having an onboarding team on hand, for the first month or so, to help with their onboarding and training will solve a ton of problems. Moving a large team and onboarding high volume can be a horrible or exciting experience, it depends on how it’s handled. I remember one move of mine, we had 64 loans to onboard in our first few

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days and no support … it was a horrific nightmare. Remember, they need to be in the field with agents and on the phone with the clients, rebranding and re-establishing their relationships. All of the support you can give them for onboarding will allow that very important process to take place. Now that you have them, you must be ready to give them your full attention until they feel part of the family, make that time in your calendar. l Prestige: Top producers are competitive by nature, work very hard for the business they bring in and like to be acknowledged, awarded, go on trips, but mostly, have a voice in the organization and be heard. They should be considered and treated like a member of the management team. They work hard and bring in a majority of business and earn that right. If you develop a

“Every company wants the champions, we know they bring in the GREEN, but are you ready to recruit and retain champions?” forum for them to be heard at the top levels, exchange ideas with their peer group and listen to them for suggestions, you will benefit greatly. They are out and about in the field and have their pulse on the marketplace and know more about competition than you do sitting at your desk each day. l Potential: Have a regular power hour with them and always be listening to their needs, new ideas and thoughts. They dream big and fast. They grow at a different pace than any normal salesperson. They have a ton of potential and always need to be challenged on a different level. Make sure you are in tune with that and ready to help them achieve their new goals. One of my favorite bosses did a bi-annual, offsite sales conference with me that we attended together, one-on-one. We would see some real masters in business every six months. Tony Robbins and Steven Covey were just a few of the notable

conferences we attended. He planned them and I gladly went along to get away, grow and expand my thoughts and vision. It meant a lot that he took the time to do that and it further deepened our business relationship. He always believed in me and my growth, and I always valued our relationship and could depend on him. I still do to this day. l Promise: Last but not least, keep your promises, honor your word and tell the truth, no matter what. There are always times as a manager when you have to deliver corporate decisions that are not yours and may be tough. I have always found that sort of thing just stinks, but is always easier when you tell the truth. There is no way quicker way to lose an employee than to break a promise. With these things in place you are guaranteed to have very green grass, attracting and producing the green from champions! Now you just need a bunch of them!

Shirleen Von Hoffmann is President and Sales Coach of Home Builders Edge. She may be reached by phone at (866) 600-EDGE or e-mail Shirleen@HomeBuildersEdge.com.

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Is the Digital Hype Ma he latest J.D. Power Consumer Satisfaction Ratings are out, and the mortgage industry was in for an unpleasant surprise. Despite a record level of digital mortgages, as 43 percent applied online in 2017, up from 28 percent in 2016, overall consumer satisfaction with the mortgage process was down eight points from the previous year. This flies in the face of expectations that a technologyenabled mortgage process is superior to an offline one. So what gives? Is the conventional

wisdom wrong and consumers actually don’t want to transact online? Not quite. In every industry and every category, we’ve seen consumers choose digital transactions over and over again. Witness the 65 percent increase in consumers applying online rather than in person. Given the option, an increasing number choose to use it. The real takeaway is not so much that consumers don’t want a digital experience. It’s that they don’t like the ones they’ve been getting. Technology can do amazing things, but it’s a tool, not an endgame.

It can be easy to get caught up in the idea of tech as a silver bullet for all of a process’s problems (and vendor marketing certainly encourages this). The truth, of course, is that it’s never that simple. No matter how attractively designed or cleverly coded a technology platform may be, on its own it won’t transform a process and magically deliver results. As the J.D. Power results show, just because a transaction is online doesn’t mean consumers will be happy with it. As is often the case, the key to success lies in the approach and

organizational mindset that go into building a digital solution. The goal shouldn’t be “implement the latest technology.” It should be “make a better customer experience.” Tech is an invaluable tool for enabling that better experience (and let’s be clear, in 2017 a digital experience is table stakes, not a nice-to-have). But the vision needs to be bigger than just a software upgrade. Going back to mortgage specifically— mortgage is a notoriously difficult transaction for consumers, with extensive requirements, little transparency and anxietyinducing high stakes. To be

successful with consumers, here is not just to take an arduous transaction and put it online, it’s to re-examine how the entire process can be made more consumer-friendly. This is not to discount the importance of technology for moving your business forward. Once you’ve gone through that exercise of considering the transaction through the lens of your customers, and determining how the experience can be improved, technology is an important part of executing your strategy. Some of the most onerous aspects of getting a mortgage are around providing

the necessary documentation and signatures; a well-designed digital solution makes this rapid and nearly seamless. A prime example, and counterweight to the anti-digital conclusion, is Guild Mortgage. Guild made a splash in their inaugural J.D. Power ranking this year, tying Quicken Loans for number one, the first time in eight years the Rocket Mortgage provider has faced competition for the top slot. Guild provides a “high-tech, high-touch” approach to customer service. Guild saw an opportunity to provide the experience their customers wanted, and the results are

reflected in their satisfaction ratings. As simple as it sounds, that’s the real secret sauce in any successful business initiative: A tight, relentless focus on the customer and their needs. So to return to our original point … is the digital hype machine starting to sputter?

Maybe, but that’s not a bad thing. Hype sets up ideas and expectations that aren’t positioned to succeed. Instead of digital hype, let’s work toward digital vision—the difference between a successful, futurelooking program, versus disappointed customers and a lot of sunk cost.

With 13 years of experience in management consulting, Rajesh Bhat co-founded Roostify to create an easier and more efficient way of securing a loan and purchasing a home. Rajesh previously led numerous Fortune 500 companies in IT, outsourcing deals ranging from $20 million to $1 billion in total contract value.

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BY RAJESH BHAT

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achine Losing Steam?

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The Age Old Question Wholesale or Retail? By Kimber White, CRMS

he relationship between wholesale and retail origination, particularly regarding companies doing business in both channels, has once again become a popular topic of conversation in industry circles. Specifically, the recent conversation has focused on a new spotlight that is being shined on the age-old issue of retail refinancing of mortgage broker-originated loans.

Kimber White, CRMS is President of the Florida Association of Mortgage Professionals. He may be reached by phone at (954) 306-3500 or e-mail President@MyFAMP.org.

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The views expressed in this article are those of the author alone and do not necessarily reflect the views or policies of the author’s employer or any organization with which the author may be affiliated.

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For a variety of reasons, the Florida Association of Mortgage Professionals (FAMP) has refrained from becoming involved in these conversations. However, as President of FAMP, I believe it is in the interest of all our members and our industry partners for FAMP to clearly establish what we stand for as an association and what we will never support directly or indirectly by remaining silent. FAMP is the largest individual membership organization for mortgage professionals in the State of Florida, and we embrace our position as a leading voice within the mortgage industry in our state. FAMP does not favor any one channel of origination over another. To the contrary, we support healthy and fair competition among and between all channels of origination because we believe that strong competition leads to better customer service and better pricing for consumers. We also know, as mortgage professionals, that regardless of the channel we operate in, we do not “own” our clients. Rather, we work hard every day to first build and then maintain strong relationships with our clients, prospects and referral sources, and we strive to offer the very best service and client experience to each of our borrowers. Nevertheless, we recognize there is a difference between healthy, robust competition and unfair or unethical business practices rooted in a quest for greater profit, and we acknowledge that there are, unfortunately, still individuals and companies in our industry engaging in unethical and consumer-harming business practices for their own benefit. FAMP condemns, in the strongest possible sense, all unethical business practices, particularly those that harm, or have the potential to harm, consumers and stifle fair competition. FAMP also rejects, however, efforts to combat unethical or allegedly unethical business practices through equally anti-competitive means, measures and rhetoric. To live up to the title “Mortgage Professionals,” we should all strive to treat each other with respect, and when we disagree, we should seek to do so in a way that helps us come together to work through whatever issues may separate us, rather than engaging in rhetoric that further polarizes our different interests or positions.

hmda+: next big fair lending threat continued from page 59

The Money Source and Endeavor America to Rebrand as TMS he Money Source has announced that wholesale lender Endeavor America Loan Services has folded into its parent company, creating a unified and streamlined brand, now called TMS, in support of all of its lines of business. The new brand campaign taps into the emotional aspects of home financing for all of its lines of business and ignites its mission to “Grow Happiness.” The Melville, N.Y.-based fintech company kicked off the year by laying the foundation for its expansion plans for the next five years, which includes rebranding itself, nearly doubling its employee size to more than 1,000 people and growing every line of business. While the mission to “Grow Happiness” isn’t new to TMS, the rebranding is designed to bring the mission to a whole new level, and includes a new logo and new language that reflects the way TMS delivers its customer experience. “It’s our 20th anniversary at TMS, making it a great time to tell the world that we’re a different kind of company and we do business in a different way,” said TMS Chief Executive Officer Darius Mirshahzadeh. “The industry has historically behaved like a faceless, emotionless category. We believe these are people’s homes and dreams we are building and want to set the tone for the next 20 years.” The company stated that it did a lot of prep work in 2017 in order to get to this point, spending the last year building out its channels, rolling out its subservicing platform SIME—Servicing Intelligence Made Easy, investing in top talent, training, as well as preparing for a product offering that will deliver a total customer experience–especially since they don’t sell their clients off. And with its rebranding officially announced, TMS has big plans for the rest of the year, stating it plans to grow every line of business. The company’s core channels include: Retail, correspondent, wholesale, servicing and insurance. One of the big plans that TMS said it will bring to market in early 2018 includes a total homeownership technology platform. Through the platform, homeowners will be able to buy and sell their home with cash back rewards, originate the purchase, as well as a host of other products that will add value to their customer relationships. And with this growth, the company also said it expects to do a lot of hiring over the next year, with the addition of more than 400 new team members across all lines of business in 2018, taking its total headcount from 600 to more than 1,000. In addition, it is projecting that its servicing portfolio will grow by nearly 50 percent in 2018 and will reach more than $200 billion by 2022. These all feed into the company’s overall goal to help more one million families reach homeownership by 2022. “The new look, voice and branding is symbolic of our people and the exceptional experience they deliver to our clients and customers,” said Mirshahzadeh. “This campaign plays a key role in helping us not only achieve our plans to massively grow the company into a fintech leader, but helps us grow happiness with our people, our clients, our homeowners, and, well, everyone.”

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unique situation presents itself. The end result is angry consumers who were planning to move into their new home and end up living in a relative’s basement or a local motel. Any discretionary area where a lender does not provide guidance to their underwriters will surely result in a wide variety of consumer treatment for similar or even exact sets of facts. Greater variability in decisions means greater risk of statistically significant results across different classes of applicants. Since regulators are continuing to increase their understanding of the mortgage business (and are more aware of discretionary issues) the result is a legal and regulatory threat that most lenders are barely, if at all, prepared to deal with. Lenders who rely on the fact that HMDA+ data is not easily examined because it is difficult to retrieve should also be aware that means a plaintiff’s or regulator’s discovery could literally drag on for years if a file by file analysis is required to determine fair lending compliance regarding a piece of HMDA+ data. An example of a common topic of underwriter discretion One example of a discretionary situation is a borrower who has received AUS approval on a Conventional loan for an owner occupied purchase even though they recently closed on another owner occupied transaction for a different property. The note they signed at their first closing included their intention to remain in the property for at least 12 months. Many lenders do not have an explicit written guideline covering this scenario. Some underwriters may (using their own various set of criteria) allow applicants to close on a second transaction under owner occupied guidelines, others will issue a Denial on the loan, while still others will counter-offer to handle the transaction as an investment and then list Approved But Not Accepted as the Action Taken if the borrower does not want to move forward under the loan terms available for an investment property purchase. Because DU and LPA will typically (at most) only issue an innocuous looking “verify occupancy” feedback message, it is very difficult for an examiner to see the discretion that the lender applied. Underwriter discretion is not unlimited Underwriters like to retain the right to exercise discretion on every file

they review. How many times have we all heard an Underwriter say they “don’t like’ or “don’t feel comfortable” with a file? On a manually underwritten file they may get more latitude, but on a file that has received an AUS approval they are generally required to come up with a more concrete reason. There is a large but still finite number of specific discretionary issues that a Loan Officer and Underwriter may face and it’s possible for a lender to institute a written policy covering all of them. Sure, there will always be rare situations that require discretion, but one offs by definition do not pose a fair lending risk because there is nothing to compare them to. Even a scenario appearing a few times a year will likely not cause a problem as there aren’t enough trials to trigger statistically significant variance. Besides, why would a regulator hang their hat on a marginal violation when there are so many discretionary areas where, depending on size of lender, there are several dozen to several hundred (or more) cases to examine that can produce stronger statistical variations in treatment between protected and non-protected classes. A huge risk: Disparate Impact can lead to Disparate Treatment Let’s consider a lender with 100 Loan Officers and 10 Underwriters. Say that three of those Underwriters have a strict policy of only allowing one owner-occupied transaction per 12 month period. In a given year, those 100 Loan Officers may move such 50 borrowers into the mortgage production cycle seeking to complete a second transaction. If 10 of those borrowers are members of a protected class and by the luck of the draw seven of them end up with one of the three strict Underwriters, there is going to be a strong case for Disparate Impact. An even bigger risk occurs if in addition to finding Disparate Impact for a particular area of underwriter discretion, a regulator also finds a file where one of the seven underwriters who are open to considering a second transaction denied a member of a protected class who had a clearly a superior financial profile compared to a member of a non-protected class approved by that same employee. In isolation, this might be explained away as a nebulous case of underwriter discretion or even underwriter error, but taken in the

overall context a lender could easily end up accused of a devastating finding of Disparate Treatment.

compliance experts is available to help lenders develop a policy to handle discretionary scenarios and software has been developed to capture them so lenders can prove to regulators that borrowers are all treated uniformly and fairly. A paradigm shift regarding application data A lender should operate as though all of their HMDA+ data, especially data that relates to their underwriting decisions, will eventually be captured and analyzed by regulators even though it is not currently reportable. Lenders’ best practice is to develop a policy to

provide guidance to their Loan Officers and Underwriters on discretionary scenarios and to capture this data so it can be analyzed to prevent fair lending violations. Underwriter discretion will rightfully always exist, but an Underwriter should be provided policies that allow them to “anchor” or “give them a place to put their foot down” when they make a decision. A business reason is a valid defense against claims of fair lending violations, but if the reason given is not part of a policy the continued on page 88

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Making a policy to obtain regulatory benefits while avoiding regulatory risk Regulators continue to grow in their understanding of the intricacies of the mortgage business. As they see some lenders develop a policy to assemble a set of guidelines to handle each potentially discretionary situation their underwriters face, regulators could formally change HMDA to require a more specific Reason for Denial or they could just be on the lookout for how lenders handle discretionary scenarios when they conduct fair lending examinations. After all, fair lending exam guidelines specifically state that vague underwriting criteria, lack of clear guidelines on making exceptions to underwriting criteria, and lack of clear loan file documentation regarding reasons for any exceptions to standard underwriting criteria are indicators of potential disparate treatment. Part of a regulator’s fair lending compliance review is to determine whether the policies and procedures of the institution enable management to prevent, identify and self-correct illegal disparate treatment. They are also tasked with identifying the manner by which management addresses its fair lending responsibilities with respect to the institution’s lending practices and standards, inspecting their training and other application processing aids, and exploring the guidance lenders provide to employees in dealing with customers. During the exam process a regulator may ask the institution to account for differences in customer treatment. A lender may be able to remain compliant if they point out a specific difference between the applicants’ qualifications, show some factor not captured in the application that legitimately makes one applicant more or less attractive to the institution, or explain the difference by pointing out some non-prohibited factor related to the processing of their applications. Since discretionary data is often the reason that applications are approved or denied, it would be better if a lender systematically retains and is prepared to use this data to explain any situations that could give concern to a regulator. Disparate Treatment may be more likely to occur in applicants neither clearly qualified nor clearly unqualified because these files have more need for discretion, so

discretion is more likely to alter the ultimate underwriting decision. However, even if a loan is still approved, discretion can cause fair lending pricing violations if, for example, discretion is used to eliminate income that causes a pricing adjustment because of a resulting higher DTI. Remember that lenders are considering this discretionary HMDA+ data in the process even if it’s not uniformly captured and/or easily retrieved and subject to statistical analysis. Some files may have notes placed in the LOS by an MLO and/or underwriter while others may not. Fortunately, guidance from

01-The crew from Carrington Mortgage Services helps ring in the holiday season in Irvine, Calif.

04-Beverly Frase of Boots Across America presents the Certified Military Home Specialist Workshop

02-Tom Hutchens, Senior Vice President of Sales and Marketing at Angel Oak Mortgage Solutions, welcomes attendees to the Atrium Hotel

05-Attendees mingle in the exhibit hall of the Atrium Hotel during the 2017 California Holiday Networking Party

03-Kevin McAllister of PRMG (right) presents Stephanie Fraser and family with their raffle prize of a Swarvoski Rose Watch

06-Ron Vaimberg of nmpU presents “Win the Business Over Your Competition Even If You Don’t Have the Lowest Rate” to California Holiday Networking Party attendees

07-Shawn Yard and Dina Barreras of Carrington Mortgage Services presents the Fraser Family with their raffle prize of an Xbox One 08-Gary Ornelas, Wholesale Account Executive with Paramount Residential Mortgage Group (PRMG), with Swarvoski Rose Watch raffle prize winner Stephanie Fraser 09-The audience gets in on the act during the presentation from Ron Vaimberg of nmpU

hmda+: next big fair lending threat continued from page 85

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defense is much weaker. Regulators treat lenders more leniently if they have a policy in place, even if an underwriter misses it on a particular file. One policy regarding a second owner-occupied mortgage within a 12 month timeframe would be to never allow them. Another option would be to allow them as long as the first transaction wasn’t used to either raise the downpayment funds and/or pay off bills that brought the DTI in line to allow the applicant to qualify for the second closing. A third choice would be for a lender to adopt an FHA type guideline for conventional loans and only allow a second transaction within a one year period for a new job requiring a move of a certain number of miles or an increase in family size that was not contemplated at the time of the original transaction. Any of these policies are fine and except for the first option still allow room for underwriter discretion. The author is aware of individual Underwriters adopting each of the above possibilities as their individual policy. He has even heard of underwriters abdicating their responsibility and simply conditioning for an okay letter from the current servicer of the initial owner-occupied transaction! This choice is especially problematic as it could easily result in a lender denying more qualified protected class members, while allowing less qualified non-protected class members to close, but it is an example of the kind of decisions that get made when management does not institute written guidelines for discretionary scenarios and effectively lose control over this aspect of their pipeline. There is always some risk that a court or regulator won’t accept a lender’s business reason, but as long as a lender follows their policy, the more granular data they retain the better off a lender will be. Properly handling underwriter discretion yields other substantial operational and regulatory benefits On the operational side, having clear discretionary guidelines reduces underwriter touches per file, reduces the number of days to

close, avoids additional document requests from consumers, ensures that initially approved mortgages actually qualify to close under the originally disclosed terms, and results in higher customer satisfaction leading to repeat and referral business. On the regulatory side, in addition to preventing fair lending violations arising from underwriter discretion, capturing and retaining more data on every applicant helps a lender defend Ability To Repay claims (from non-QM mortgages now and all mortgages when temporary QM expires no later than 01/10/21), fends off UDAAP issues regarding the sufficiency of the underwriting process, prevents consumer complaints to the CFPB since fleshing out more data at the time of application makes it more likely that the consumer will have a positive experience, and avoids False Claims and FIRREA violations because when all pertinent data is considered it’s less likely that a defective loan will be manufactured. The bottom line The interplay of existing, new, and modified data points under the altered HMDA guidelines will give regulators a better look at the factors that go into the loan approval/denial process. With a better understanding of this framework, they will be in a better position to dig into the HMDA+ data that plays a crucial role in making underwriting decisions. HMDA+ data relating to Action Taken includes Agency guidelines and lender overlays, and the underwriter discretion involved in interpreting and applying them. In the author’s opinion, fair lending threats from underwriter discretionary decisions is the single largest regulatory risk facing the mortgage industry today because the issue is on the regulators’ radar, most lenders have not begun to comply and protect themselves, and without written policies in place it’s almost certain that a lender is manufacturing loans with statistically significant differences in treatment between protected and non-protected classes of consumers that cannot be explained away by legitimate business reasons.

Alan Bercovitz is the Developer of The Complete 1003 Software, an artificial intelligence tool designed to produce a more thorough, accurate, and uniform application data set for every mortgage borrower. He can be reached by e-mail at Alan@GuaranteedMortgageQuote.com.

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The Insight and Knowledge Mortgage Professionals Need to Succeed in 2018 By Greg Holmes

With trended credit reports, you can get a much clearer picture of how ith the promise of a new year comes a renewed hope consumers previously used credit or paid back debt. You can extract more for growth. But do you have what it takes to be The Insight and Knowledge Mortgage Professionals Need to Succeed in 2018 meaningful statistics, better analyze borrower behavior, and manage their successful in 2018? The mortgage space presents By Greg Holmes risk more effectively. unique challenges and opportunities. Between regulatory demands and constraints, government Embrace vendor consolidation edicts, the supply and demand of housing in different The trend to vet only one vendor for third-party verifications will continue– markets, and economic factors among other things, finding a clear path to and for good reason: Vetting is timely and expensive. Lenders are realizing success in the months to come can be dicey. But, it doesn’t have to be. they need to rely on partners who have all the verifications services they The trick is to be aware of the issues before you, nurture and protect the use under one roof, such as: assets you have – and manage your lending business accordingly.

Make good use of trended credit data Since 2016, lenders have been increasingly using trended credit data. Trended credit data is a two-year historical perspective on a consumer’s utilization of credit accounts, giving lenders the ability to determine if a borrower tends to pay off revolving credit lines each month or if they tend to carry a balance month-to-month while making minimum or other payments. In addition, seasonal and sudden changes in revolving credit behavior are revealed. The trended data is included on virtually all active tradelines, not just revolving accounts, and includes credit cards, Home Equity Lines of Credit (HELOCs), student loans, car loans and mortgages.

Expect more improvements in automation/data/technology There is every reason to believe the steady march toward greater efficiency through automation will continue. The strides that have been made in just last few years in terms of technological advances have made a huge impact on the industry. And 2018 promises to be no different. Consider the fact that mobile adoption is continually growing. Experian, for example, launched “Text for Credit” feature which was initially rolled out in July 2017 with capabilities for retailers, lenders and card issuers, and is now making waves in the mortgage industry. A potential borrower will text a word, such as “Mortgage,” to a short number supplied by the lender. In most cases, the consumer will be recognized by their device credentials, then receive a text message response which will take them to a hosted website where they can review mortgage offers, apply, and receive instant decisioning. Artificial intelligence is also beginning to permeate the mortgage industry. More and more, lenders will be using data and technology to predict how a consumer will act. For example, you may soon be able to tell that a person has received a substantial promotion and may therefore be someone who would consider moving to a larger home. Or, on the flip side, you might see that someone is starting to use their credit cards more and that something may have happened with their job. You can expect these and more technology innovations in our industry to really take hold in 2018 and beyond. Make your finest asset your top priority: Your employees With all the profound change the industry has and continues to experience, it is critically important to pay keen attention to the people at the heart of your lending operation–your employees. They must be genuinely engaged in what they do and how they do it. To that end, investing in training and professional development is a must. You must also equip them with the tools they need to succeed—the technology, the verification services, and the marketing support that is so critical to minimizing risk and promoting growth. Without a dedicated and motivated work force, the path to success in 2018 will indeed be risky. But if you understand the issues before you and the mortgage industry, and properly prepare your employees to take advantage of the opportunities and overcome the challenges, you will be well positioned to make real progress in the coming year.

Greg Holmes is Managing Partner at Credit Plus Inc., a third-party verifications company serving the mortgage industry. He can be reached by e-mail at GHolmes@CreditPlus.com.

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Educating borrowers will be key Opportunity exists for mortgage professionals to educate would-be home buyers about building their credit. What many applicants and Millennials don’t understand is that people with lower credit scores have different options to explore despite today’s more stringent credit requirements. Even though approximately one-third of Millennials do not have a high enough credit score (620) to meet the industry’s minimum standard requirement, FHA loans require a minimum credit score of just 500. In addition, there are ways applicants can build their credit to make homeownership possible sooner rather than later. Paying down outstanding debt, securing a higher credit limit, and correcting credit report errors can all help with an applicant’s credit score. To facilitate this, you can use scoring tools to show them what may happen to their credit if they do certain things–like pay off a credit card.

l Credit Reports: To better assess risk and help your applicants achieve their financial goals. l Tax Return Verifications: To detect potential mortgage fraud by verifying a borrower’s income. l Verification of Employment: To validate employment information and consumer income so you can make informed decisions. l Fraud: To identify fraudulent or invalid loan applications to protect you from taking on undue risk. l Flood Zone Determinations: To stay in compliance with special flood hazard area notifications. l Quality Assurance/Quality Control: To monitor loan quality throughout the entire origination process and beyond. l Undisclosed Debt Verifications: For real-time monitoring of borrower credit activity initiated during the “quiet period”–from the initial credit file pull through loan closing.

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A rising rate environment Most mortgage economists and analysts with Mortgage Bankers Association (MBA), Freddie Mac and Kiplinger agree: Rates are on the rise. According to an article published by QualifiedMortgage, the average rate for a 30-year fixed loan has for the most part remained below four percent through the summer and early fall of 2017. However, depending on what economist you believe, rates are expected to hover somewhere between four and five percent in 2018. What’s behind the increase? The anticipated rise in rates is in response to the growing economy, actions taken by the Federal Reserve as well as other contributing factors. Nevertheless, 2018 is expected to be a purchase year as homebuyers who are undecided reconsider making purchases in order to lock lower rates. This is especially true in areas where prices are increasing. Home prices are expected to continue rising in many cities throughout the country into the new year. The resulting expectation is that in some locations, buyers may have to deal with both higher mortgage costs and higher home values. Therefore, the decision to buy a home sooner instead of later may be a good one. The number of Baby Boomers in this country–those born between 1946 and 1964–is 75.4 million. On the face of it, that’s an impressive number, but not when compared to Millennials (those born between 1982 and 2000) who number 83.1 million according to U.S. Census data. Realtor.com, an online real estate listing site operated by News Corp., conducted a survey of 1,054 randomly selected homeowners across the U.S. between July 6 and July 13. The study cites that 85 percent of Baby Boomers have no plans to sell their homes in the next year. However, among the 35 percent of homeowners who said they are planning to sell, more than half of them were Millennials who are looking for larger homes or better features. The problem is Baby Boomers have become averse to trading up or downsizing from the homes they currently own which has had a very real negative affect on inventory. The strengthening economy coupled with increasing home prices has provided little motivation for established homeowners to sell. Despite Millennials’ increasing willingness to buy homes in 2018, some are delaying their purchase because they do not have a sufficient downpayment or have too much existing debt (i.e. student loans). Still others don’t have good credit or are under the impression that they do not earn enough to cover a monthly mortgage payment.

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the Lorton, Va. regional office are Steven Hurysz, Uzair Malik and Cameron Wallace. New American Funding has named Eric and Leslie Bergen as Area Production Manager and Area Sales Manager, respectively. They will be key leaders responsible for expanding the company’s footprint across Texas and New Mexico through increasing loan production, onboarding Loan Originators, and opening new branches. Leslie will coach Loan Originators to maximize their potential while Eric will oversee the backend to ensure that loans are efficiently processed. Class Appraisal has announced the appointment of John Fraas as its new company President. Fraas comes with strong operations experience, most recently serving as President and Chief Financial Officer for Detroit-based Fathead. GSF Mortgage Corporation has announced the addition of Kara Heath as a Mortgage Loan Originator in the company’s Evansville, Ind. branch. GSF Mortgage has also announced that Gino Gregory has been promoted to Area Manager in Western Pennsylvania, where he previously served as a Branch Manager. In his new position, he will focus on growing the presence of the GSF brand in Pittsburgh and the surrounding areas. Assurant has appointed Scott McGregor as Managing Director of American Title Inc. (ATI), an Assurant subsidiary. McGregor will oversee the ATI product lines and lead strategy and innovation, while strengthening the company’s presence in key markets. ReverseVision has announced that it has added new Chief Technology Officer (CTO) Jim Magner and Vice President of Operations Stacey Lund to its senior management team. Proper Title LLC has added four new hires in key areas at two of its seven closing locations: Based in the downtown Chicago office, Kathy Kwak has joined

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Proper Title as Director of Title, bringing more than a decade of legal and real estate experience to the role. The Palatine, Ill. office expands with the addition of Steve Connors as Director of Business Development, a topgenerating sales manager and founding agent from @properties; Laura Bendikas as Closing Director, with 20 years of experience in title and technology; and Joseph Allegretti as Attorney Business Development Manager, overseeing growth of the firm’s attorney client network. l David Dickey, who has more than 25 years of experience in the mortgage lending space, has joined Guaranteed Rate Affinity as Executive Vice President, National Director. l Impac Mortgage Holdings Inc. has announced that Rian Furey has been hired as the company’s President of Direct Lending, to lead the consumer direct retail channel. l LoanLogics has announced that Craig Riddell has been promoted to Executive Vice President, Chief Business Officer. Riddell, who formerly served as Senior Vice President and Chief Business Development Officer, will be responsible for establishing and developing ongoing relationships with LoanLogics’ largest enterprise clientele, growing the company’s LoanHD AppQ Network of data services and integration partners, as well as overseeing the LoanLogics’ account management and consulting services teams.

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

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

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ne of the greatest advantages of being immersed in marketing and advertising over the past 25 years is the constant exposure to new ideas, mottos, catch phrases, unique selling propositions, taglines, jingles, commercials and—of course—a multitude of brands. Working with different companies throughout my career, helping them flesh out new advertising concepts and bringing them to fruition has truly been a privilege, but it has revealed an aspect of the business which I am not particularly proud of, one that has been hidden in plain sight for years—I am speaking about plagiarism. Most of our industry is comprised of Baby Boomers, individuals who lived through “The Wonder Years” which were saturated with music and television. If we weren’t listening to vinyl records and eight-tracks, we were glued to the groove tube watching Warner Bros. cartoons, episodes of The Twilight Zone and Andy Griffith and, naturally, countless TV commercials. It was a pop culture overload, and while every generation has their “popular culture,” ours was more homogenous—as sources of stimuli were limited, and the creators themselves were cut from the same cloth. However, we didn’t all turn out the same, as more often than not, we relied on our wild imaginations to invent new forms of play, new frames of thought, and new ways of challenging ourselves to keep our minds and bodies active.

So where am I going with this, you ask? Well, it is these collective memories and experiences that play a significant role in how many of us view the world and process thoughts and idea. They have colored the space of our imagination, some brighter than others. In my wheel-house, though inundated with references, trying to come up with an original marketing idea or advertising campaign that will adhere to the minds of our prospective audience’s is not all that simple. We often find our efforts obfuscated by the systematic reliance upon pre-existing imagery. Today, and over the last

decade, the realm of advertising has evolved dramatically. The way we process information is much faster. We have moved into a hyperspace of digital media since the advent of desktop publishing in the 90s. Bandwidth is now much larger and there is an overabundance of stimuli inundating the social media stratosphere. The days of thumbing through ads have been replaced with hours scrolling through smart devices, making information readily available at everyone’s fingertips and easily disseminated across media platforms and audiences. In many instances, what is seen and read is nothing more than a continuous recycling of information in a slightly different format or with a slightly different spin—all content is derivative. Flashy banner ads, self-produced videos and endless blogs flood the social media landscape, enabling anyone to readily voice their opinion and believe you me—everybody’s got one, and everyone will proclaim to be the resident expert. The danger is, when everyone’s an expert, no one will be. Advertising is very competitive … it requires a certain savviness and a creative way of thinking As a marketing executive in the mortgage industry, I have always retained the idea that in order to remain creative, you must train yourself to take notice of everything around you. In a previous interview with National Mortgage Professional Magazine, “The Man Behind the Ads,” I speak about the process of observation and how it can influence thought and inspire ideas. It is vital to take inspiration from everything around you and from all industries outside of those that we serve; you have to be a sponge, absorbing the multitude of strategies and approaches, ranging from simple (think perfume ads), to complex. Everything you see can fuel your creativity, and you have to be ready to catalyze these glints of inspiration at any given moment. I’ve found that my best ideas would start on a cocktail napkin while relaxing and trying not to think too hard. You’d be surprised at what comes to mind. The mortgage industry is a very competitive marketplace Let’s face it, the competition is fierce when it comes to mortgage companies vying for brokers and

Plagia

Has plagiaris proportions By Paul Lucido

borrowers’ attention. Sales and marketing teams, more than ever, need to be on their toes, constantly adapting to the everchanging demands of the market. The challenge, however, lies in the fact that we are selling a service and an opportunity, as opposed to a product that we can tangibly vary. Executive leaders are always brewing up new initiatives, forcing their teams to reevaluate their corporate strategies, streamline their processes, and redefine their image. Unfortunately, this last element leaves many new mortgage companies at a disadvantage. Most do not have a leadership team, let alone the budget to hire a skilled marketing and sales team. Furthermore, hiring an outside firm can be very expensive and an advertising budget is often

negated altogether. So, while many of these companies are well-versed in loan origination, processing and overseeing the daily operations, very little attention is given to marketing and advertising, leaving it either unattended or in the hands of their originators and branch managers to handle— many of which lack the necessary skills, creative talent and/or artistic sensibility to compete. These circumstances have bred precarious dynamics, allowing many companies to fall victim to plagiarism by mimicking or copying what other players have already utilized successfully as a way of establishing their presence in the industry. The imagery becomes recognizable, and the authorship becomes muddled. While it is seemingly convenient and efficient at the

iarism vs. Originality

iarism become a matter of epidemic ons in the mortgage industry?

time, this reckless behavior breeds future conflict, including copyright infringement and violation of trademark laws. Not fun when HUD comes to audit. It’s one thing to draw inspiration from observation and experiences—we all know I love a good allusion. It’s another thing to explicitly copy, rip off or—to euphemize the act, “plagiarize”—from your neighbors and competitors and claim it as an original thought. It is without question that there is some ignorance or lack of ethical perspective when it comes to respecting what other companies have worked so hard at doing to separate themselves from the competition. I continue to see up-and-coming mortgage companies and even those that are well established in the business riding on the coattails

of their competitors. They change a word here or there, scrub copy from a blog, or pull images from another source to create a watered-down version of another competitor’s advertising campaign or motto, not only violating their ethical business standards, but ultimately diluting the effectiveness of their own campaign. This is certainly not to say that an original thought is easy to come by—there have been many instances, moments of weakness to say the least, when I’ve traversed the seas of writer’s block only to arrive at an idea that was already being used by a competitor. These difficult moments however are actually opportunities to prove the originality and uniqueness of your company, in conjunction with the potency of your ethics and moral principles. Sure, I’ve resurrected

old concepts and revitalized them, but only if it was something that I had a hand in originally or collaborated on—say campaigns that have long since passed, or seeds of ideas that never fully came to fruition— regardless, I stick to content that was borne from my own imagination and when I find that my content is not actually “my” content, I retreat to my den and try to think of something fresh. Again, it’s hard to be fresh when so much propaganda inundates the airwaves. The act of “recycling” an idea could easily be subconscious, as much of our media intake is subliminal.

How many times have we all seen the metaphor of the guy standing on the mountain top saying, “I’ve achieved success!” or the people rowing in unison in the catamaran demonstrating teamwork! And I’m sure each time these “new ideas” were presented in meeting, there was someone who found it “refreshing” and poignant, despite its redundancy. This is why we must consciously increase our exposure to new content, rather than limit it. And more importantly, work to actively comprehend and consume, to avoid the subconscious priming of our mental landscapes, so that we recognize when an idea is derivative of another. Not only will these strategies increase variability within the marketplace, but it will challenge and stimulate each player, ultimately resulting in higher quality content. Plagiarism is a serious offense that is often disguised with euphemisms such as “borrowing” or “simulating” … but the severity of its consequences are such that the matter should not be swept under the rug. Creative directors and leadership officials that condone the use of unoriginal content are not only putting themselves at risk of legal repercussions, but they are putting their audiences at risk. Unlike in “The Wonder Years” in which the media were explicitly at the mercy of the oligopolies, there are now unlimited sources of content. We have the opportunity to create a democratic, free marketplace, yet we are surrendering to plagiarism. To reiterate the same material is to create a consumer space that is homogenized, and nothing is more threatening to our current sociopolitical state than homogeneity. We need variety and originality to constantly challenge the norm and force each player within the industry to innovate and adapt to an evolving landscape, it is a system of checks and balances… it is a way to assure that we are Progressively Better in All that We Do. My North Star is my motto: Inspired by design, motivated by imagination. I stick to that and the ideas keep flowing.

Paul Lucido is National Marketing Director for Paramount Residential Mortgage Group Inc. (PRMG). He may be reached by phone at (951) 547-6311 or e-mail PLucido@PRMG.net.

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The Top Three Skills Mortg “It is not necessary to change. Survival is not mandatory.” —W. Edwards Deming What’s the saying? Adapt or die. It’s an adage mortgage professionals can appreciate because this industry always lands its share of change. If you’re an active mortgage pro, I offer you my heartiest “congratulations” for having survived the tsunami of transformation the industry has endured over the last few years. But let me quickly follow up with, “Don’t rest on your laurels.” A new year is here and with it will come more change. Some of the trends that will keep you from resting on your laurels are these: l More competition from new lenders entering the profession who are smart, tech savvy and hungry. l More diversity in your potential clients, with both younger (Millennials are finally having success getting mortgages) and older boomerang buyers who got burned in the recession–

they’re returning to the market and will need mortgages. l More social media. I know, it’s hard to believe there could be more, but it continues to gather strength as a powerful marketing tool in business across many industries. l More inventory of homes. Yes, finally supply is catching up with demand. So what skills match these trends … skills you’ll need to make 2018 a great year? Here are my best suggestions: 1. Learning skills: No surprise here. The more things change, the more you need to learn. Make an extra effort to stay up on the latest trends in lending and in real estate with an emphasis on your local market area. Regularly check around for continuing education and professional development courses and commit to take them as soon as you can. 2. Computer/technical literacy skills: Again, no shock here. That’s

been the case for the last 20 years, but as each year unfolds, it’s becoming more and more of an imperative. I’d like you to think of technology in two ways: One as a way to make your work days more efficient (i.e., software for getting and converting leads, stay in touch with prospects, reaching prospects, handling administrative tasks, etc.); and two, think how your prospects use technology in their lives today–how they use it to communicate and receive information so that you’re in better sync with them. 3. Communication and interpersonal skills: Yep, another common need in the mortgage industry–particularly because of all the changes. Jump on every opportunity to both polish and practice your listening, speaking and writing skills. And learn to appreciate the differences in each generation of your prospects and adapt to each one. Each generation has very different needs and ways of communicating. And know how to set expectations, especially for those younger buyers entering the

market. I’ve seen far too many deals fly off the rails because lenders didn’t prepare clients on what to expect in the lending process. At this point you might be thinking, “Gee, Bubba, this sounds like a good bit of work.” And you know what I say: “Darn right. Success takes work and plenty of it.” There’s always a certain level investment of time, energy, and money needed to be successful at anything–and the mortgage industry is no different. If you’re passionate about your job and you’re willing to put in the work in to improve your skills, you also have a better chance at improving your career. Here’s to happy and healthy 2018! Bubba Mills is Chief Executive Officer and Owner of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 957-8353 or visit CorcoranCoaching.com.

n National Mortgage Professional Magazine n JANUARY 2018

By Bubba Mills

NationalMortgageProfessional.com

rtgage Pros Need in 2018

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The Three Words Every Originator Must Know to Succeed in 2018 By Brian Sacks

hile we all “hope”2018 will be another good year for the real estate and mortgage business, I think we all realize deep down inside that “hope” is truly not a strategy. As I have coached Originators this year and have spoken around the country, I have found that everyone has goals, but few truly accomplish them. There are many reasons why these goals are not accomplished, and I hope you will read this article to avoid making these same mistakes. Perhaps the main reason for failing is that we don’t have an actual goal. You cannot just say you want to do well … it must be quantified, it must be written down and it must be planned.

Here’s an example from my own production: 1. Realtors 2. Referrals from past clients and other referral sources

l Conceive l Believe l Achieve Let me break each of these down for you. They are from the popular book Think and Grow Rich by Napoleon Hill, who said a person can accomplish whatever they can conceive, believe and achieve. If you miss any one of these key ingredients, you cannot succeed! Step 1: Conceive We have spent the entire first part of this article discussing how to conceive and actually break it down into steps that are attainable. If you just glanced over that part, go back now with a highlighter and write this plan down. Step 2: Believe This is going to sound harsh, so get ready for some no BS advice. I have watched Originators for the past 30 years who succeeded when they had everything stacked against them, while others who had every advantage simply withered and left the business. It’s actually been a topic that has

99 Step 3: Achieve We are now finally at the last step, and while I have quoted a book by Napoleon Hill earlier in this article, I have to also give you a warning: You cannot just “Think and Grow Rich.” You must actually act. Now, don’t misunderstand me, you must have positive thoughts. In fact, you will act according to your thoughts, whether positive or negative. The point though is that you now have a written goal, you know what you must do to achieve that goal. Hopefully, you even have the time to believe it. But, you won’t achieve without action. Not to sound corny, but it’s true when you hear that you must work your plan and plan your work. Here’s to a great 2018!

Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for more than $1 billion. He has trained, consulted and coached tens of thousands of loan officers and company owners over the past 32 years on how to close more loans, make more money, and still have a life. Brian is the host of “Top Originator Secrets,” which can be seen weekly on Mortgage News Network and on his blog. You can get more information and grab your free report on “How to Get Agents Chasing You” at TopOriginatorSecrets.com.

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Now for the hard part … how? Unfortunately, many Loan Officers come up with the first part, but never get to the hard part which is actually “planning” where these deals will originate. It’s nice to say that you want to earn $100,000 and that you need 50 loans in order to do so, but now the big question is “How will you generate them?” You need to think of your business as a four-legged chair, meaning you should always have at least three to four marketing methods you are always working on. The reason to think about this as a chair is because a chair with just one or two legs will crumble, but a chair with four legs is very solid.

Important note: I did not say 34 … I said three or four marketing methods! All too often, we find ourselves coming up with the next big idea or the next shiny object and going down a different path. When you try to do everything, you will likely your find yourself doing nothing! So … let’s talk about the three words no one else mentions that are critical to every Originator’s success. Are you ready? I mean really ready because you cannot simply read this and benefit, but you truly need to ponder and consider, and think and act.

always fascinated me and I have dedicated my life to studying. I want you to write this down … “You will only achieve to the level of your current self-image.” Ever see someone do really well, better than expected and then melt down? It may have even happened to you? The reason is that the person exceeded their self-image. To put it in our terms, let’s say you want to close $12,000,000 and you have a month where you close $2,500,000. I can bet you that the next few months, you will close $1,000,000 or less because you have performed over your current self-image. Just because you closed $2,500,000 one month does not make you a $30,000,000 producer. “You will act and perform consistently with your selfimage.” Keep in mind … this does not happen consciously, but rather, under the radar subconsciously. I could and probably will write a book just on this topic, but for now, really take some quiet time to make sure your goals are in sync with your self-image of who YOU are … not who you “want to be,” but who you truly are.

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Go back and re-read the previous entry before you move forward You cannot just “hope” to have a good year or achieve any goal. Instead, you must clearly state it and create a sound plan to attain it. Maybe, most importantly, you must have a way to track your progress and see if you are on track or if you have gotten off track somehow. Here’s an example … I will earn $100,000 in 2018. Notice I said “will” not “want.” I will get to this subtle yet important distinction later. My average commission is $2,000 from an average loan of $200,000 at 100bps. I now know that I need to do 50 loans a year or five a month (accounting for fallout) and one per week.

3. Publicity, articles, radio, TV and books 4. Direct to consumers: Direct mail, Facebook and Webinars

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

calendar of events

FEBRUARY 2018 Tuesday, February 6 Florida Association of Mortgage Professionals Central Florida Chapter 2018 Trade Show Hilton Orlando/Altamonte Springs 350 Northlake Boulevard Altamonte Springs, Fla. For more information, visit MyFAMP.org. Tuesday-Friday, February 6-9 Mortgage Bankers Association National Mortgage Servicing Conference & Expo 2018 Gaylord Texan 1501 Gaylord Trail Grapevine, Texas For more information, visit MBA.org. Thursday-Friday, February 8-9 2018 Tri-State Mortgage Conference Marriott Residence Inn-Portsmouth Harbor Events & Conference Center 100 Deer Street Portsmouth, N.H. For more information, visit MBBA-NH.org.

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

Sunday-Thursday, March 25-29 35th Annual Regional Conference of Mortgage Bankers Associations Harrah’s Resort & Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, visit MBANJ.com. Tuesday, March 27 2018 Iowa Mortgage Association Spring Conference Cedar Rapids Marriott Hotel 1200 Collins Road NE Cedar Rapids, Iowa For more information, visit IowaMA.org. APRIL 2018 Wednesday-Friday, April 4-6 NAPMW 2018 Annual Conference Harrah’s Las Vegas 3475 South Las Vegas Boulevard Las Vegas For more information, visit NAPMW.org. Thursday, April 12 27th Annual Rocky Mountain Mortgage Lenders Expo Sports Authority Field at Mile High 1701 Bryant Street Denver For more information, visit CMLA.com. Thursday-Sunday, April 12-15 CONNECT 2018 Westin Buckhead Atlanta 3391 Peachtree Road • Atlanta For more information, Visit CONNECT2018.org.

Monday-Tuesday, April 23-24 Mortgage Bankers Association 2018 State and Local Workshop Capital Hilton 1001 16th Street NW • Washington, D.C. For more information, visit MBA.org. Tuesday-Wednesday, April 24-25 Mortgage Bankers Association National Advocacy Conference 2018 Capital Hilton 1001 16th Street NW • Washington, D.C. For more information, visit MBA.org. April 29-May 2 Mortgage Bankers Association Legal Issues & Regulatory Compliance Conference 2018 JW Marriott Los Angeles L.A. Live 900 West Olympic Boulevard Los Angeles For more information, visit MBA.org. Monday-Wednesday, April 30-May 2 American Mortgage Conference 2018 Pinehurst Resort 80 Carolina Vista Drive • Pinehurst, N.C. For more information, visit NCBankers.org. MAY 2018 Thursday-Sunday, May 3-6 MBAG’s 2018 Annual Convention Hilton Sandestin Beach Golf Resort & Spa 4000 South Sandestin Boulevard Destin, Fla. For more information, visit MBAG.org. Thursday, May 10 Maryland Mortgage Bankers and Brokers Association Annual Conference 2018 Loews Annapolis Hotel 126 West Street Annapolis, Md. For more information, visit MMBBA.org.

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

Sunday-Wednesday, May 20-23 Mortgage Bankers Association Commercial/Multifamily Servicing & Technology Conference 2018 InterContinental Miami 100 Chopin Plaza Miami For more information, visit MBA.org.

Mortgage Bankers Association National Secondary Market Conference & Expo 2018 New York Marriott Marquis 1535 Broadway New York, N.Y. For more information, visit MBA.org. Monday-Tuesday, May 21-22 NRMLA 2018 Eastern Regional Meeting Intercontinental New York Times Square 300 West 44th Street New York City, N.Y. For more information, visit nrmlaonline.org. 101 JULY 2018 Monday-Tuesday, July 30-31 Summer CAMP 2018: Destination Coronado! Coronado Island Marriott Resort & Spa 2000 Second Street Coronado, Calif. For more information, visit TheCAMPSite.org. AUGUST 2018 Wednesday-Saturday, August 15-18 Florida Association of Mortgage Professionals 2018 Annual Convention & Trade Show Walt Disney World Dolphin 1500 Epcot Resorts Boulevard Lake Buena Vista, Fla. For more information, visit MyFAMP.org. OCTOBER 2018 Sunday-Wednesday, October 14-17 Mortgage Bankers Association 2018 Annual Conference & Trade Show Walter E. Washington Convention Center 801 Mt. Vernon Place NW Washington, D.C. For more information, visit MBA.org. DECEMBER 2018 Saturday-Monday, December 8-10 NAMB National 2018 Caesars Palace 3570 South Las Vegas Boulevard Las Vegas For more information, visit NAMB.org.

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

Monday-Tuesday, March 19-20 NRMLA 2018 Western Regional Meeting Paséa Hotel & Spa 21080 Pacific Coast Highway Huntington Beach, Calif. For more information, visit NRMLAOnline.org.

Sunday-Wednesday, April 15-18 Mortgage Bankers Association 2018 National Technology Conference in Mortgage Banking Conference & Expo Detroit Marriott at the Renaissance Center 400 Renaissance Drive, Renaissance Center • Detroit For more information, visit MBA.org.

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Sunday-Wednesday, February 11-14 Mortgage Bankers Association CREF/Multifamily Housing Convention & Expo Marriott Marquis San Diego Marina 333 West Harbor Drive San Diego For more information, visit MBA.org.

Thursday, March 8 FAMP Broward Chapter 2018 Trade Show Bonaventure Hotel & Conference Center 250 Racquet Club Road Weston, Fla. For more information, visit BrowardFAMP.org.

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LENDERS COMPLIANCE GROUP 167 West Hudson Street - Suite 200 Long Beach | NY | 11561 | (516) 442-3456 www.LendersComplianceGroup.com The first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance. Pioneers in outsourcing solutions for mortgage compliance. Our Compliance Team Will: Leverage your existing employees. Improve your productivity. Collaborate on projects. Make the most of your current technology. Bring innovation to your company. Be a strong cultural fit. Free you to focus on your core competencies. Give you access to world-class expertise. Lower your total operational costs.

EDUCATION

MORTGAGE BROKER AND LENDER COMPLIANCE

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AUDIT, MLO POLICIES and UPDATES Our fees are less than the big national firms

Concord Church Lenders www.concordchurchfinance.com 800-926-0399

that don’t call you back. Program includes all Manuals

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

AUDIT TECHNOLOGY

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

● ● ● ●

$100,000 to $5 mil - 75% LTV - Fixed Rate No personal guarantees & no prepayment penalties TEMPLES, SYNAGOGUES, ALL PLACES OF WORSHIP Originator Quote protected against circumvention for 45 days ● BONUS: A loan to a place of worship opens the door to residential mortgages for the congregation members

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

Certified Military Home Specialist Beverly Ray Frase "Training Boots on the Ground" Since 2009 • Trained 3,000 CMHS course grads • Trained for Depts of HUD, Treasury & more • 20+ years' experience in real estate & finance, military life COMING TO YOUR CITY!

COMPLIANCE CONSULTANTS

HARD MONEY/PRIVATE LENDING

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

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

Division of Lenders Compliance Group, BCG is the first and only mortgage risk management firm in the U.S. devoted to supporting the unique compliance needs of residential mortgage brokers. Leveling the Playing Field for Mortgage Brokers

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

BOOTS ACROSS AMERICA TOUR 2018 Beverly@BootsAcrossAmerica.org

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

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

MARKETING

RECRUITMENT

WHOLESALE LENDERS

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

PRIVATE FINANCING

WHOLESALE/CORRESPONDENT LENDERS

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Greenbox Loans, Inc 3250 Wilshire Blvd., Suite 1900 Los Angeles, CA, 90010 (800) 600-9198 www.greenboxloans.com

WHOLESALE LENDERS

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

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

To submit your nomination, go to

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

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PUBLICATIONS

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

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Get MORE with Angel Oak Mortgage Solutions. © Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-to-business communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Employer and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, veteran status and other classifications protected under the law. MS075 0817