JULY 2021
Volume 13, Issue 7
MOST CONNECTED Mortgage Pros
INTEREST RATES AND INFLATION’S RETURN
Too Much Business? FACING OFF With The IRS
CREATING YOUR COMPANY CULTURE
BACK COVER
PARTNER WITH THE LEADER IN NON-QM MORTGAGE LENDING MORE EXPERTISE | MORE SERVICE | MORE TECHNOLOGY
Visit AngelOakMS.com | 877.926.3073 ©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-tobusiness 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. MS_A252_1220
JULY 2021
FRONT COVER
Volume 13, Issue 7
MOST CONNECTED Mortgage Pros
INTEREST RATES AND INFLATION’S RETURN
Too Much Business? FACING OFF With The IRS
CREATING YOUR COMPANY CULTURE
INDUSTRY PARTNER MEMBER
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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
Volume 13 Number 7 JULY 2021
CONTENTS
nationalmortgageprofessional.com
4 Reach Out And Touch There is no sales business that isn’t also a relationship business.
8 It’s Rush Hour All The Time How to keep your mortgage company on an even keel even when business waves are battering you around. 11 People On The Move See who the movers and shakers are in the mortgage industry.
>
6 Walking The Walk Does your company have a culture you stand by, or a slogan you sling?
COVER STORY PAGE 19
MOST CONNECTED
mortgage professionals of 2021 for their participation in the world of social media
WE’LL BE THERE. YOU CAN BET ON IT. 14 My First Million: 12 Second Chances Lead Build-A-Broker: To Success Don’t Panic When The Failure is just another IRS Chooses You lesson learned on the way Getting a letter that the The wait is almost over. Originator Connect, the nation’s to getting it right. premier mortgage event, returns to Las Vegas this August Internal Revenue Service with a lineup of events suretax to prepare you better than ever wants to audit your before for an ever-evolving industry. You 16 won’t want to returns is stressful. But miss these exclusive programs:
How To Deal With The New Office Rules As companies call workers back to the office, here’s how to navigate the Your First Million Dollars new rules of safety and Most Loved Employers Awards Gala productivity take these steps, and your NMLS chances of a smooth Free Renewal* experience will get much Build-A-Broker better.
All these price rises in commodities have to mean inflation is coming.
& so much more!
17 Wholesale Directory
See the full lineup of events and reserve your spot for free using our code NMPOCN at www.originatorconnect.com.
AUGUST 20
19 COVER STORY THE MOST CONNECTED MORTGAGE PROS See NMP’s list of who’s got the most connections across the mortgage origination world.
22, 2021 LAS VEGAS, NV
Join us at Planet Hollywood, located at the heart of the Las Vegas Strip!
PRESENTING SPONSOR
NONNQM SPONSOR
28 OriginatorTech Directory
30 REELIN’ IN THE RATES As inflation resurfaces, what’s the likely outlook for mortgage interest rates? We talk to top economists and industry leaders, who say they’re starting to get a little nervous. 32 Facebook Thoughts: AKA, ‘A Savannha Summer”
nationalmortgageprofessional.com
REVERSE MTG SPONSOR
SHOW PRODUCER
Safety is our top priority. Learn about the safety precautions we take at each of our events to earn us 100% safety satisfaction from our attendees at originatorconnectnetwork.com/covid19. *Complimentary registration available to NMLS-licensed active LOs and their support staff. Show producers resereve the right to determine final eligibility.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |
3
JULY 2021
JULY 2021
Volume 13, Issue 7
MOST CONNECTED Mortgage Pros
INTEREST RATES AND INFLATION’S RETURN
Too Much Business? FACING OFF With The IRS
CREATING YOUR COMPANY CULTURE
Volume 13, Number 7
LETTER FROM THE PUBLISHER
STAFF CEO, PUBLISHER & EDITOR Vincent M. Valvo
The Electronic Embrace
I
f there’s one thing we’ve learned since this pandemic hit, it’s that being connected to friends and family via social media is critically important when we can’t be connected in person. That’s also quite clear when it’s
business-related. We’ve all become used to learning what each other is doing via quick scroll through Facebook, a pointed post on LinkedIn or maybe a story or reel on Instagram. Folks who do this right keep their followers. They know how to separate their business connections from their family ones. They understand that often just the right social media note can generate good will, a strong sense of concern and can keep them top of mind when someone is looking to do a deal. That’s why every year, NMP magazine reaches out to identify the industry’s most connected mortgage pros. Who is successful at this tactic, and what can we learn from their success? When we want to recruit talent, we often look at their social media feeds. But it’s easy to forget they’re probably also looking at ours. When we want to show
ASSOCIATE PUBLISHER Beverly Bolnick SENIOR CONTRIBUTING EDITOR Keith Griffin CONTRIBUTING WRITERS Lew Sichelman, Erica LaCentra, Harvey Mackay, Pam Marron, Nick Roberson, Mary Kay Scully, James Potter Charlet STAFF WRITER Katie Jensen GRAPHIC DESIGN MANAGER Stacy Murray INTERACTIVE DESIGN DIRECTOR Alison Valvo USER EXPERIENCE DESIGNER Billy Valvo ONLINE CONTENT DIRECTOR Navindra Persaud MARKETING & EVENTS ASSOCIATE Melissa Pianin HEAD OF ENGAGEMENT AND OUTREACH Andrew Berman FOUNDING PUBLISHER Joel Berman
that we’re not just in it for the quick commission, it’s our social media feeds that will demonstrate whether we’ve shown concerns and involvement with our community. Being highly connected to others doesn’t just mean we have insight and contact with what they’re doing. It also means they have a window into whether we’re actively trying to be the best, or just actively trying to rack up connections.
Submit your news to editorial@ambizmedia.com If you would like additional copies of National Mortgage Professional Call (860) 719-1991 or email info@ambizmedia.com
www.ambizmedia.com
VIN CE N T M. VALVO Publisher, Editor & CEO
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© 2021 American Business Media LLC All rights reserved. National Mortgage Professional magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: American Business Media LLC 345 North Main St., Suite 313 West Hartford, CT 06117 Phone: (860) 719-1991 info@ambizmedia.com
By If you give an investor a real estate loan. Then they will ask for competitive terms. When you give the investor competitive terms. They will ask for top-tier customer service. The investor will remember they have diverse scenarios and ask for nationwide funding. With these potential opportunities, they will want a real estate loan.
If you want a real estate investment loan, contact us today! Visit RCNCapital.com \ Email Info@RCNCapital.com \ Call 860.432.5858 RCN Capital, LLC is licensed as a California Finance Lender under Department of Business Oversight license number 60DBO-46258. Arizona Mortgage Banker License BK-0932325. Oregon Mortgage Lending License: ML-5571; NMLS Company ID: 1045656.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |
5
AVE HERSHMAN
RECRUITING, TRAINING AND MENTORING CORNER
Your Word Is Your Bond
What it means to develop a company or office culture BY DAVE HERSHMAN | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL
I
dentifying your Unique Selling Proposition is an important goal for every individual and organization. Integrating this concept into the company culture is quite something else. Just because a company underwrites and/or approves loans quickly does not mean it is part of the culture. For example, are each and every one of the loan officers featuring this turnaround time or are they selling rate and assuming that the quick approval is not something their clients want or need? For a more in-depth example of this, let us take a look at two different wholesale or correspondent lenders. Both underwrite loans at a 48-hour turnaround time. For one their advertising lists quick turnaround as one of many features. The other actually guarantees this turnaround time with a penalty if they don’t hit it. Not only is the advertising different, but their reaction to a busy market will also differ. One might move to 96-hours when things get tough. Another will do whatever is possible to avoid this—including having overflow contract underwriting in place so they can avoid the penalty and not contradict their mission. It’s the same performance, but a very different underlying commitment to the “culture.” The issue of culture is more than
just one of “service” vs. “rate-based” advertising and sales. The issue may move to your internal staff and the atmosphere of the company— • The development of minimum standards that are set for sales personnel. These minimum standards may be quality, action or production based. An example of a quality standard would be the percentage of fall-out that is allowed. An example of an action standard would be the requirement that a loan officer attend mandatory meetings. A productionbased standard would require a certain number or volume of loans per month or quarter. Or perhaps it would require a certain number amount of revenue per month. • The development of a team atmosphere. How well do the loan officers support the processors and vice-versa? When someone is sick do others pitch in? Are loan officers helping each other with their clients and helping to train new loan officers or are they trying to steal deals from each other? Everyone must know what groups they serve—including the manager. The manager is actually a servant of everyone in the office and if this is not part of the culture, the office will not function well as a team. • The development of a professional atmosphere. How is the staff dressed and how well do they communicate with themselves and their clients? How well do you treat vendors, including paying their bills and loyalty? Are lenders used as hedges for larger profit? Are people screaming at one another in a crisis? • The development of an ethical reputation. There is no doubt that many with the industry leave much to be desired with regard to how well they serve their clients and present
their cases. Every day another actor seems to be in trouble for predatory lending and/or outright fraud. Is this behavior tolerated, overlooked or completely banished within your organization? How do you develop and/or change the culture of your organization? It is more than deciding what you want to be known for. You will have to make tough decisions, including no tolerating certain behaviors and even firing those who clash with the culture or refusing to hire those who could help with profitability but hurt your long-term direction. Likewise, it means turning away certain types of business—business that you know might be easy money but put you on the wrong side of the line. You may have to change your advertising methods or even abrogate relationships with long-term referral sources. A culture is built from a foundation. A foundation is built one brick at a time. It does not exist because you say it is so. It is built with your reputation, actions and results. Most importantly, everyone in the organization must know the culture and be a part of it. If they are not aware of your goals, they can’t be part of the solution. Your culture should help you make recruitment decisions, select candidates and orient new employees. The culture is built through positive actions every day. It is not only about discouraging actors or actions, but also rewarding positive activities.
Dave Hershman, senior vice-president of sales for Weichert Financial Services.
You will have to make tough decisions, including not tolerating certain behaviors and even firing those who clash with the culture.
we’re
changing the
game. 17 days from app to clear-to-close.
Non-QM Done Right. www.fnba.com/wholesale NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |
7
RICA LACENTRA
THE XX FACTOR
What To Do When You Have Too Much To Do Business rush can lead to burnout. Here’s how to cool things down.
BY ERICA LACENTRA | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL
L
oan volume continues to remain high in most areas of the mortgage industry and the investor space is no exception. SFR, bridge loans, and build-to-rent are booming and showing no signs of slowing down anytime soon. In turn this is causing a massive increase in business for lenders. Lenders may be finding that they have more business than they can handle and while many are hiring additional staff to support this newfound volume, it takes time to hire and train new employees. So, in the meantime, many companies are relying on the staff they have to work much longer hours to ensure business keeps moving along and loans are getting closed. While no
one wants to complain about an influx of business, especially after the pandemic turned the industry on its head, working long hours day after day, week after week, is not sustainable. Employee burnout is a real problem even if companies don’t want to acknowledge it, but in order to not suffer the potential fallout from pushing employees too hard, companies need to not only recognize it, but they need to be proactive to ensure it doesn’t occur in the first place.
RECOGNIZING BURNOUT ISSUES As many employees were forced to move to working remotely because of the pandemic, it made it more and more difficult to keep work from creeping into their personal lives. Being just steps away from a home office on the weekend or being unable to resist the urge to respond to one last email to get ahead on work became the norm for so many people in the mortgage industry because there was no longer that clear separation from work. Unfortunately, these habits have stuck around, and almost
seem expected by many lenders for employees to continue to always be “on call” even as many employees have returned to working back in an office setting in some capacity. Yes, many lenders have tried offering additional incentives to their employees to reward them for grinding day after day but at a certain point, plain and simple, sometimes employees just need the ability to take time off without the fear of being shamed or feeling like they will be crushed by the weight of the work that will pile up in their absence. According to a recent Gallup study, some of the top reasons for employee burnout in the mortgage industry included an unmanageable workload coupled with the fear of falling behind should the employee take time off, lack of support from management, specifically when it came to being proactive about hiring to ensure employees didn’t have too much on their plates, and finally unreasonable time constraints to get tasks done so employees felt it was necessary to work long hours or on weekends just to meet deadlines.
Lenders need to stop incentivizing employees to not use their time off.
AVOIDABLE
continues to be an unspoken stigma
be less engaged with customers and
The most unfortunate thing about all
in the mortgage industry about
are more likely to make errors in their
these causes of employee burn out
taking time off. Account Executives
work. Employees having to constantly
is they are entirely preventable. It’s
especially are always expected to
be in work mode can often cause more
important for management to have
be available to take a phone call or
harm than good. Plus, for burned out
open communication with employees
answer an email regardless of the day
employees that have reached their
and recognizing when there is a need
or time. Lenders should take the time
breaking point and quit, it is much
to hire additional employees rather
to establish a small team or at the
more disruptive to a business to have
than overloading their current work
very least a backup for each member
to take the time to hire and train a
force. Also setting realistic deadlines
of their sales team to allow employees
new employee than to allow a current
and expectations for certain tasks and
to take time off when they need it.
employee to have a much needed
accepting that employees have limits
uninterrupted vacation. Employees
to what they are able to take on are
BREAK TIME
all things lenders need to get a better
When it comes down to it, pushing
recuperate to be able to come back to
handle on if they want to retain their
employees to the point of burning
their jobs fresh and at the top of their
current workforce.
out may work to deal with increased
game, and it is time that companies
volume in the short term but the
recognize that.
Finally, lenders need to stop
deserves down time to mentally
incentivizing employees to not use
long-term effects can be much more
their time off or at the very least,
detrimental to a business. Employees
stop shaming employees that do use
that are over worked are shown to
the time off that they earn. There
have decreased productivity over time,
Erica LaCentra is director of marketing for RCN Capital.
NON QM Showcase Angel Oak Mortgage Solutions Atlanta, GA www.angeloakms.com
Angel Oak Mortgage Solutions is the leader in the nonQM mortgage space. We offer alternative specialized mortgage solutions for brokers throughout the country helping borrowers who don’t fit conventional guidelines. Our innovative non-QM products include: Bank Statement, Platinum Jumbo, No Income Investor Cash Flow, "Just Missed" Portfolio Select and Asset Qualifier. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business. Visit https://angeloakms.com/ programs/ for details on our products that can help you grow your business. NATIONWIDE except: AK HI ID MA MO NY VT
LoanStream Mortgage Irvine, CA
www.LoanStreamWholesale.com
Programs Include: Full Doc / Alt Doc, ITIN, DSCR, Bank Statement, Fixed, ARM, and Interest Only Programs, High LTVs and Lower FICOs, Business Owners, Investors, Licensing - LoanStream (lsmortgage.com)
Luxury Mortgage Corp Stamford, CT
www.luxurymortgagewholesale.com
The Simple Access® NonQM suite of products was built around the idea that it doesn’t have to be complicated to finance a home. We have created a diverse selection of borrower friendly programs that are simple, innovative and flexible. For information on our Correspondent division, visit www. luxurymortgagecorrespondent. com. AL | AR | AZ | CA | CO | CT | DC | DE | FL | GA | IL (no IO loans) | MA | MD | ME | MI | NH | NC | NJ | NM | NY (no subprime) | OH | OR | PA | RI | SC | TN, TX | UT | VA | WA | WI Properties
Oaktree Funding Corp. Chandler, AZ www.oaktreewholesale.com
Non-Agency & Investor Advantage The Non-QM experts Oaktree Funding are proud to offer innovative solutions for diverse borrowers. We offer products and services through our three channels of operation: Wholesale, Correspondent and Retail Lending. Oaktree is not tied to any one investor securitization, which allows us to consistently offer flexible and expanding guidelines to adapt with borrower’s needs.
Temple View Capital Bethesda, MD www.templeviewcap.com
Our business purpose loan products, Fix & Flip, Fix & Hold, Bridge and LongTerm Rental Investments for single-family, 1- 4 units, Condos, Townhomes. Our Rehab Loans & Bridge allow for the monthly Payments to be Rolled into the Loan. With our Long-term rental, we offer 30 Year Fixed, ARM and Interest-Only. The borrower is LLCs, LPs, and Corporations. ( 58 words) We are a nationwide lender
Full product line at: www. oaktreewholesale.com AZ | CA | CO | CT | DC | FL | GA | ID | IL | IN | MD | MA | MI | MN | MO | NJ | NM | NV | NC | OH | OR | PA | SC | TN | TX | UT | VA | WA | WI
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |
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Quicken Loans, LLC; NMLS #3030; www.NMLSConsumerAccess.org. Equal Housing Lender. Licensed in 50 states. AL License No. MC 20979, Control No. 100152352. AR, TX: 1050 Woodward Ave., Detroit, MI 48226-1906, (888) 474-0404; AZ: 1 N. Central Ave., Ste. 2000, Phoenix, AZ 85004, Mortgage Banker License #BK-0902939; CA: Licensed by Dept. of Business Oversight, under the CA Residential Mortgage Lending Act and Finance Lenders Law; CO: Regulated by the Division of Real Estate; GA: Residential Mortgage Licensee #11704; IL: Residential Mortgage Licensee #4127 – Dept. of Financial and Professional Regulation; KS: Licensed Mortgage Company MC.0025309; MA: Mortgage Lender License #ML 3030; ME: Supervised Lender License; MN: Not an offer for a rate lock agreement; MS: Licensed by the MS Dept. of Banking and Consumer Finance; NH: Licensed by the NH Banking Dept., #6743MB; NV: License #626; NJ: New Jersey – Quicken Loans, LLC, 1050 Woodward Ave., Detroit, MI 48226, (888) 474-0404, Licensed by the N.J. Department of Banking and Insurance.; NY: Licensed Mortgage Banker – NYS Banking Dept.; OH: MB 850076; OR: License #ML-1387; PA: Licensed by the Dept. of Banking – License #21430; RI: Licensed Lender; WA: Consumer Loan Company License CL-3030. Conditions may apply. ©2000 - 2021 Quicken Loans, LLC. All rights reserved. Lending services provided by Quicken Loans, LLC, a subsidiary of Rocket Companies, Inc. (NYSE: RKT) “Quicken Loans” is a registered service mark of Intuit Inc., used under license. Quicken Loans, 1050 Woodward Ave., Detroit, MI 48226-1906
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HOW NMP’S MONTHLY SECTION OF HANDS-ON PRACTICAL ADVICE
BUILD A BROKER How To Respond If The IRS Comes Knocking YOUR FIRST MILLION DOLLARS How To Make Adversity Work For You How To Handle The New Office Rules CAREER TICKER: People On The Move
PEOPLE ON THE MOVE //
> Birchwood
Credit Services, a national provider of mortgage credit reporting services, promoted Larry Avery to senior executive vice president.
> Guaranty
Home Mortgage Corporation announced the addition of Tommy Williams, executive vice president, director of Correspondent Lending.
> Notarize has just named Terri Davis as General Manager, Real Estate.
> Guaranty
Home Mortgage Corporation added Karen DeChellis as senior vice president, director of Mortgage Operations.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |
11
BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE BUILD-A-BROKER
How to Make Sure You Don’t Get Audited
Building a brokerage with another person takes some careful thought BY BRIDGET WESTON | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL
M
any business owners put the stress of getting audited right up there with being accused of a crime – you’re guilty until proven innocent. Luckily, there are several steps you can take to improve your chances of not getting audited. And, if one day you open your mailbox to find a notice from the IRS staring back at you, don’t panic. There are steps you can take to get through the process successfully. Think of audits like your high school algebra teacher checking and grading your homework. Audits are the way the IRS double-checks your work and makes sure you’ve calculated your numbers correctly. Specifically, they’re confirming your business is filing and submitting accurate financials to the government. There are a lot of factors that determine which businesses get audited and which do not. What many people don’t know is that a significant number of the businesses chosen for audit are selected by a computer at random. If your business isn’t chosen at random and something in your return is flagged, this still doesn’t mean that your business is doing something wrong. What it does mean is that some part of your tax return was called into question and the IRS wants to see your business records to verify that your return is accurate. Audits of simple discrepancies are
often conducted by mail. If the IRS has more serious questions, an agent may want to conduct an in-person interview. If you filed your tax return correctly to the best of your knowledge, then an audit goes from being scary to just being an annoying inconvenience. Still, no one wants to get audited. Taking steps to make sure your tax returns aren’t flagged is the easiest way to make sure the IRS doesn’t come knocking at your door. What are the red flags that can trigger an audit: 1. Reporting Less than Your Full Income It can be tempting to keep side income and other small earnings out when tabulating your total income earned for the year. Saving a little now, however, can cost you much more later. 2. Math Mistakes Making a mistake when calculating and reporting dollars on a return is a quick way to raise eyebrows. Double and triple-check your math before submitting your return. 3. Claiming Too Many Business Expenses The IRS considers a business expense one that’s both ordinary and necessary to your business. The rules pertaining to business expense deductions changed significantly in 2018, so it’s a good idea to review the new rules to make sure you’re claiming no more than you should. Today, business expense
deductions are one of the biggest red flags for the IRS. 4. Claiming Significant Charitable Contributions If your business supports a 501(3)c charitable organization, you have every right to take a deduction on your donation. Where companies get into hot water is when they report false donations or don’t have the proper documentation to prove the contribution was made. Keeping receipts is a must here. 5. Home Office Deductions This is a big one! It’s far too common for small business owners who work out of their homes to make large home office deductions without taking the right steps to qualify. And, the IRS knows it. To deduct home office expenses, you must have an area of your home used strictly for business purposes. Know the rules so you can avoid the headache of a home-based business audit. 6. Rounding Dollar amounts that consistently end in zero and five will also be a red flag for the IRS. If your Schedule C or business expense reports all end in round numbers, the IRS is going to wonder why and likely ask you to verify each dollar amount. Reporting exact numbers is an easy way to not draw attention to your return. Even if your business is doing everything
PEOPLE ON THE MOVE //
> Homeowners
Financial Group hired industry expert Leonard Cullip as West regional manager.
12
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
> Guaranty
Home Mortgage Corporation named Michael George as the company’s chief analytics officer.
> CMG
Financial, a mortgagebanking firm headquartered in San Ramon, CA, hired of Dan Humes as area sales manager.
> Guaranty
Home Mortgage Corporation announced the addition of Bernita Hill, senior vice president, director of Mortgage Operations.
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right and you have the most thorough and accurate tax reporting, you can still get audited. While it’s not likely, be aware of what to do if your business does get targeted for an audit. If you do receive an IRS audit letter in the mail one day, these are the specific steps you need to take immediately. 1. Review the IRS Letter with a Professional When your business is chosen for an audit, the IRS will mail you a letter. You typically have 30 days to respond. The first thing you should do after reading the letter is immediately review it with your accountant. Be aware that debt from any tax you owe will accrue until your tax audit is resolved. Responding to the IRS as quickly as possible is important and can potentially cost you significantly if you don’t. 2. Collect Copies of Your Financial and Tax Documents Keeping thorough, organized financial records year-round is the smartest way to manage your small business. And it’s the best way to be prepared should you ever face an audit. If you are audited and are preparing documents to submit to the IRS, compile a summary of key financial statements and records. · Income statement · Expense statement · Schedule C, if a sole proprietor · Receipts and other supporting documents · Any other financial statements that support your business’ financial state A few general rules here: don’t give the IRS more than it requests, don’t give the IRS less than it requests, and don’t give the IRS original copies of
> Greystone,
a national commercial real estate finance company, hired Eliav Dan as a senior managing director, based in Los Angeles.
SPONSORED EDITORIAL
any paperwork. Always make copies. 3. Have a Professional by Your Side Business owners have the right to representation during an audit by an enrolled agent, an unenrolled preparer who prepared your return, or an attorney or CPA. If your audit is being handled solely through the mail, you should still contact your tax professional for guidance. For an in-person audit, have your tax professional on site with you. 4. Have Confidence in Your Business’ Tax and Financial Records Keeping good records throughout the year, filing on time and meeting regularly with your tax professional or accountant is the best way to safeguard your business from tax scrutiny. When you take these steps and follow the rules the IRS puts out, have confidence that your tax and financial records are in good shape. That way, if you do get audited, you’ll be able to back up your filings and stay in good standing with the IRS. One of the best ways to stay compliant and up-to-date with IRS rules for small businesses is with the guidance of a SCORE mentor. A SCORE mentor can help you navigate tax law changes and create a plan to manage and document income and expense records throughout the year. Contact a SCORE mentor today. Bridget Weston is the CEO of the Service Core of Retires Executives (SCORE) Association, where she provides executive leadership and works directly and collaboratively with the Board of Directors to establish the vision and direction of SCORE.
> ChainLogix
Mortgage Solutions named Tim Moreland as the company’s senior vice president of Operations and Strategic Business Development.
OVERCOMING CHALLENGES TO ORIGINATE MORE EFFICIENTLY BY ESSENCE TURNER, MARKETING BRAND MANAGER
W
e all know 2020 was a banner year for the industry and many broker shops were swamped trying to up. To keep pace with the high demand, brokers have been looking to leverage technology to speed up their origination process, work more efficiently and better connect with borrowers. But in such a busy market with unprecedented volumes, like the one we’re currently in, converting to new technology can be a real sticking point for brokers. The COVID-19 pandemic put the benefits of technology front and center for both brokers and borrowers. Advanced digital mortgage technology enables brokers to make material improvements that speed up operations and meet borrowers’ ever-increasing expectation of the mortgage process. Without such a system in place, brokers are left with roadblocks that make it challenging to manage increased demand in a timely fashion while ensuring consumer satisfaction. Borrowers are increasingly using remote tools like online applications, digital document submission, real-time loan status updates and eSignings. Consumers’ appetite for a contact-free mortgage is stronger now than ever. Given the constraints that the pandemic has placed on in-person interactions, digital solutions have become the norm for many people who now favor the ease and convenience provided by technology. The FHFA reported that e-mortgages accounted for 4.25 percent ($38.8 billion) of all single-family mortgage purchases made by Fannie Mae and Freddie Mac during the first half of 2020 (roughly a 33% YOY increase). So having a tech stack in place to work with borrowers the way they want to conduct business is crucial. Likewise, reputation is one of the most important factors that consumers take into consideration when selecting who to work with. Reputation includes both people and process—easy to work with and an efficient experience. Respondents from the most recent JD Power consumer Lending Satisfaction Study reported quick application and approval processes and the quality of mobile and digital capabilities to be additional factors that significantly impact their decision. There are only so many efficiencies that brokers can gain—for collecting data, verifying assets and finding lenders—without technological assistance. Adding headcount to help manage increased volume doesn’t scale business in the same way as digital mortgage tech, especially for small broker shops. It also would not address borrowers’ increased expectations for digital options. Digital features that simplify and expedite loan origination include an online application, document upload, eSigning and cloud-based software so borrowers can log in any time from any device. Such capabilities reduce costs, improve quality and ultimately lead to a faster close. When it comes to being able to scale operational output, traditional methods cannot compete with their digital counterparts. That is why making the transition is at the forefront of many brokers’ minds during this time of higher than-usual inbound volume. Digital loan origination technology like Calyx Software’s Zenly enables brokers to address and overcome these challenges. Zenly also offers no-hassle implementation and can be ready to use in a little as 15 minutes. Brokers and borrowers alike benefit from reduced process times and the convenience of an on-demand, cloud-based mortgage experience. NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |
13
HOW: HANDS ON PRACTICAL ADVICE LEADERSHIP LESSONS
Turn Adversity Into Advantage What we learn from stumbles strengthens us BY HARVEY MACKAY | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL
T
he village blacksmith pumped the bellows to prepare his furnace fire and placed a piece of iron into the intense heat until it reached an almost transparent state. He then removed the now pliable iron and pounded it with a heavy hammer, transforming it into a horseshoe by repeating the process. When the final shape is achieved, the hot iron is plunged into water. The drastic temperature change tempered the iron to give it durability and strength. Author Glenn Van Ekeren offers this story to show how the human spirit is similarly formed and strengthened through the adversities of life. Consider these phenomenal achievements of people experiencing adversity. Walt Disney said: “All the adversity I’ve had in my life, all my troubles and obstacles, have strengthened me… You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you.” Beethoven composed his greatest works after becoming deaf. Sir Walter Raleigh wrote the “History of the World” during a 13-year imprisonment. Abraham Lincoln achieved greatness by his display of wisdom and character during the devastation of the Civil War. Under
a sentence of death and during 20 years in exile, Dante wrote the “Divine Comedy.” John Bunyan wrote “Pilgrim's Progress” in a Bedford jail. Simon Cowell had a record company fail. Steven Spielberg was rejected from the University of Southern California Film School twice. J.K. Rowling’s world-famous Harry Potter novels were rejected by several publishers while she also was going through a divorce and raising her daughter alone. Sylvester Stallone suffered complications at birth that severed a nerve and caused paralysis in part of his face, which caused his slightly slurred speech. Consider Mary Groda-Lewis, who endured 16 years of illiteracy because of unrecognized dyslexia, was committed to a reformatory on two different occasions, and almost died of a stroke while bearing a child. Committed to going to college, she worked at a variety of jobs, saved money, graduated with her high school equivalency at age 18, was named Oregon's outstanding Upward Bound student and finally entered
college. In her determination to become a doctor, she faced 15 medical school rejections until Albany Medical College finally accepted her. In 1984, Dr. Mary Groda-Lewis, at age 35, graduated with honors to fulfill her dream.
DON’T SURRENDER Overcoming adversity presents tremendous opportunity to demonstrate what you can accomplish if you are committed to achieving a goal. Because I’ve shared my experiences with confronting business setbacks, I’m often asked for advice from people who are considering throwing in the towel on their ambitions. I listen to their situations, and almost every time, I tell them the same thing: You can’t give up so easily. Whether your plan requires some tweaks or a major overhaul, if you can hang in there, you can get there. Hard work and nerves of steel are honed just like the work of a master blacksmith. As one of my favorite authors, Napoleon Hill, said, “Every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit.” Be thankful for adversity. No person is more unhappy than the one who has never experienced adversity. It’s
PEOPLE ON THE MOVE //
> Rhonda
Dalton was tapped to lead Homebridge Financial Services, Inc.’s new Morgan Hill branch.
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> Alberto
G. Musalem was elected to Freddie Mac’s Board of Directors.
> Monique
Stanford will assist Rhonda Dalton in leading Homebridge Financial Services, Inc.’s new Morgan Hill branch as its sales manager.
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April: Everybody is preoccupied with income taxes. May: Too much rain; farmers distressed. June: Too little rain; farmers distressed. July: Heat has everyone down. August: Everybody is away on vacation. September: Everybody is back but broke. often said that what doesn’t kill you makes you stronger. That’s perhaps an exaggeration, but I’m grateful I didn’t give in to any negative thoughts that would have surely brought my business down. Adversity is the grindstone of life. Intended to polish you up, adversity also has the ability to grind you down. The impact and ultimate result depend on how you respond to the difficulties that come your way. Consider the doomsday businessman
who had a reason every single month as to why business was bad. His list of people-problems and business adversity is a comical reminder of our tendency to find excuses for our lack of success. January: People spent all their cash for the holidays.
October: Customers are waiting to see how fall clearance sales turn out. November: People are upset over election results. December: Customers need money for
February: All the best customers have gone south.
the holidays.
March: Unseasonably cold and too rainy.
Mackay’s Moral: Never let a stumble be the end of your journey.
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HOW: HANDS ON PRACTICAL ADVICE
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BENCHMARKS & BEST PRACTICES
Back To ‘Normal’ What’s next for in-person work?
BY MARY KAY SCULLY | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL
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he handshake is defined as a gripping and shaking of right hands by two individuals, as to symbolize greeting, congratulation, agreement, or farewell. While traditionally handshakes are widely used in a business setting, due to the COVID-19 pandemic over the last year and a half, this second-nature action, among other ways of expression, has been quickly abandoned due to the concern of spreading germs and a desire to be mindful of each individual’s comfort level when it comes to physical contact. As more people get vaccinated and feel more comfortable venturing back out into familiar spaces, companies are beginning to reinstate in-office work, adopt hybrid work models, and/or allow business travel to resume. This means that we may want to take a look at how things have changed and how these once second-nature actions will be different moving forward. The in-office new “normal” With handshakes and hugs likely at bay for a while, it’s time to figure out an alternative method of greeting. Whether it is an elbow bump or a wave from a distance, make sure you’re being respectful of others and their level of comfort. It also wouldn’t hurt to know
where you land on the physical contact spectrum. Beyond simple greetings, now we also must look at shared spaces a bit differently. Spaces like cubicles, meeting rooms, refrigerators and water coolers require a second thought before falling back into past behaviors. Many offices may limit shared spaces such as lunchrooms, provide dividers between cubicles and require masks at all times. This means planning ahead is required for even something as simple as bringing lunch and deciding where to eat it. Although being back in the office may feel like a normal activity, don’t forget what you’ve learned during the pandemic and keep your and others’ health and safety top of mind.
WHAT WORKED DURING THE PANDEMIC? Although fully remote work was a challenge for many at first, there were some activities that excelled in a remote setting. Take training for example. Remote training not only became the safer option as close proximity and large crowds weren’t an issue, but it also allowed for more on-demand capabilities. Through video training and on-demand options, training has seen an uptick in attraction and retention. Now, employees can participate in training during a time that works best for their schedule. That’s not to say that live training is a thing of the past. In fact, in the first five months of this year, I have had over 10,000 folks attend my live training sessions. The point is that now trainees have options and can figure out what works best for them.
INTERACTING WITH CUSTOMERS Now that people have become more comfortable with interacting outside of Zoom and their devices, how will our customers react when going through the homebuying process? Will in-person meetings happen again? And, if so, how will they look? Will documentation and applications revert to physical
form or remain digital? How will closings work? Over the past year and a half, the act of buying, selling, and facilitating a home loan has completely changed. From appraisals to closings, everything has pretty much changed to a remote or digital setting to the best of its abilities. However, as we get closer to pre-pandemic normalcy how do these interactions change? It comes down to the customer and your organization. Some customers may be more involved and prefer in-person interactions, with physical documents and the physical exchange of keys, all traditional aspects of buying a home. Especially with a booming housing market, interactions, home sales and purchases have been handled on a case-by-case basis when it comes to interacting with others. Some may prefer to interact digitally via email or text, which allows them to keep a distance they feel comfortable with. Whatever option the customer prefers, there are solutions for everyone and even greater flexibility now in the home buying and selling process.
MOVING FORWARD While there’s not a one-size-fits-all solution when it comes to returning to the office and pre-pandemic activities, it has certainly made us all sit back, take stock of our actions, and helped us determine how we should interact with one another. Whether it’s something as simple as a handshake and grabbing lunch with a colleague or facilitating in-person closings with physical documents, it’s important to remember what we’ve learned throughout the pandemic, and continue putting emphasis on and thought into practicing safe measures in our interactions with each other.
Mary Kay Scully is the Director of Customer Education at Enact, leading the development of the company’s customer education curriculum. The statements in this article are solely her opinions and do not necessarily reflect the views of Enact or its management.
Wholesaler Directory
Acra Lending Specialty/ Niche: Non-QM / Jumbo Bio: Acra Lending is the leader in Non-QM Wholesale and Correspondent lending programs. Offering a range of programs and services geared toward helping mortgage professionals and borrowers achieve their purchase and investment goals. We are committed to providing simplicity, consistency and an optimal customer experience. States Licensed in: AL, AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, ME, MD, MI, MN, MT, NE, NV, NH, NJ, NC, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WY
Website: https://acralending.com/
Angel Oak Mortgage Solutions Specialty/ Niche: Non-QM, Non-Agency “Angel Oak Mortgage Solutions is the leader in the non-QM mortgage space. We offer alternative specialized mortgage solutions for brokers throughout the country helping borrowers who don’t fit conventional guidelines. We are pioneering a fresh approach to today’s mortgage lending challenges helping partners to grow their business.” States Licensed in: AL AK AZ AR CA CO CT DE FL GA HI IL IN IA KS KY LA ME MD MI MN MS MT NE NV NH NJ NM NC ND OH OK OR PA RI SC SD TN TX UT VA WA WV WI WY DC
Freedom Mortgage Specialty/ niche: VA and FHA As the #1 VA and FHA lender*, Freedom Mortgage Wholesale is dedicated to serving the needs of brokers, wholesale correspondents, banks and credit unions with a wide variety of products. Our local Account Executives, three Regional Operation Centers, and seasoned underwriters are committed to providing an unparalleled experience *Inside Mortgage Finance, Jan-Jun 2020 States: all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands.
www.freedomwholesale.com
The Money House, INC. Specialty/ niche: DIRECT HECM LENDER - GNMA ISSUER Money House On Demand is the US Division of The Money House, Inc., a Ginnie Mae Forward and Reverse Mortgage Issuer/ Servicer. The US Division combines a complete range of mortgage products with a unique seasoned and professional team of bilingual staff and resources supporting complete Wholesale and Correspondent Partner relationships. States: CA. CO, DC, FL, GA, IL, MD, OR, PR, TN, TX Website: http://WWW.MONEYHOUSEUS.COM
www.angeloakms.com
Towne Mortgage Company Specialty/ niche:Manufactured Homes, Renovation Loans
First National bank of America Specialty/ Niche: Non- QM FNBA is a portfolio lender with over 65 years of experience. We understand that in the Non-QM business, service makes all the difference. That’s why we are committed to providing you with the fastest turn times, exceptional service and loan programs that make growing your business easy!
Towne has nearly 40 years of experience in the industry. When you choose to partner with Towne, you join a team of seasoned industry experts and an unmatched client support team. We offer competitive pricing in a rapidly changing marketplace. Visit our website tpo.townemortgage.com or call us at (925) 727-2516 States: AL AR AZ CA CO CT DE DC FL GA IL IN IA KS KY LA MA MD ME MI MN MO MS MT NE NV NH NJ NC ND OH OK OR PA RI SC SD TN TX UT VA VT WA WV WI WY
tpo.townemortgage.com
States Licensed in: All 50 States
www.fnba.com/mortgage-brokers
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his month, National Mortgage Professional magazine features its “Most Connected Mortgage Professionals of 2021,” the top industry professionals selected by the editors for their participation in the world of social media.
The winners were chosen in part based on the nominations we received and focused on these social media platforms: Twitter, Facebook, LinkedIn and Instagram. Winners were not selected based just on their numbers. To be considered for a Gold Level Connection, a nominee must be among the top in three of the categories; Silver Level Connection in two; and Bronze Level Connection in one. None of the nominees were among the top on all four platforms. All information was supplied by the nominees and reviewed by magazine staff. Social media stats are as of 06/18/21. A checkmark indicates top performance for that platform.
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SPECIAL SECTION
2021 MOST CONNECTED nmp
GOLD LEVEL CONNECTIONS
MAT ISHBIA
As president of Mortgage Educators and Compliance, David has educated tens of thousands of mortgage professionals. He is regularly sought out as a speaker at conferences and spends more time outside of his home state. With 40 years of mortgage-related experience, he is the premier educator in the industry.
Twitter Followers: 8,236 Facebook business page likes: 8,395 LinkedIn Connections: 15,881 Instagram Followers: 1,209
Twitter Followers: 1,840 Facebook business page likes: 6,021 LinkedIn Connections: 12,227 Instagram Followers: 905
MATTHEW SCHULTZ
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DAVID LUNA
Mat Ishbia is the president and CEO of United Wholesale Mortgage the No. 1 wholesale mortgage lender in the nation for six years running. Under Mat’s leadership, UWM has soared to new heights, becoming one of the most innovative lenders in the industry and a leading advocate for mortgage brokers.
STEVEN KAUFMAN
Matthew Schultz, national sales & division manager for American Financial Network, has recruited and placed over six billion dollars in loan production and operated one of the industry’s top mortgage branch platforms for producing and non-producing branch managers. He provides one of the industry's best mortgage branch opportunities for all mortgage branching needs.
Dr. Steven Kaufman, an accomplished investor, entrepreneur, philanthropist and Chair of TIGER 21 Houston, held C-Level positions in financing enterprises for 18 years coordinating over $4 billion in real estate financing over 3 economic cycles. In 2004, Dr. Kaufman founded ZeusLending.com offering financing solutions for residential and commercial real estate.
Twitter Followers: 41,000 Facebook business page likes: 22,000 LinkedIn Connections: 1,000 Instagram Followers: 98,5000
Twitter Followers: 151 Facebook business page likes: 34,766 LinkedIn Connections: 6,900 Instagram Followers: 42,900
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Acra Lending is a dba of Citadel Servicing Corporation NMLS ID# 144549, Licensed under Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act license #41DBO-74196, Finance Lenders License # 60DB094450, and CA-DRE #01799059. For mortgage professionals only. This information is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations. Distribution to the general public is prohibited. Acra Lending is an equal opportunity lender. Rates, terms, and programs subject to change without notice. Offer of credit subject to credit approval per applicable underwriting and program guidelines, applicant eligibility, and market conditions. Not all applicants may qualify. Not valid in the following states: AK, HI, IA, MA, MS, MO, NM, NY, ND, OH, RI, SD, and WV.
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SPECIAL SECTION
2021 MOST CONNECTED nmp
SILVER LEVEL CONNECTIONS Marc Demetriou
Marc Demetriou consistently ranks nationally in the top 1% of mortgage originators, is a CPE instructor, former host of "The Real Estate and Money Show,” award winning author, motivational speaker, RISMedia's Newsmaker for 2020, certified divorce lending expert, and awarded as a Five Star Mortgage Professional in NJ for 2020. Twitter Followers: 936 Facebook business page likes: 1,161 LinkedIn Connections: 10,271 Instagram Followers: 2,891
Josh Friend
Josh’s impact on the mortgage industry is unmistakable from his early days of working at a mortgage company, rising up the ranks, to running a mortgage company. He is transforming the borrower experience with his leading technology Insellerate, which enables lenders to intelligently engage borrowers, creating customers for life. Twitter Followers: 232 Facebook business page likes: 2,803 LinkedIn Connections: 12,020 Instagram Followers: 141
Depend on Us. Deliver for Your Clients. As a trusted local wholesale lender, we’re committed to providing great service for you and great results for your clients – each and every time. No FICO score (unless PMI loan)
Up to 97% financing
Cash-outs* up to $2.5M (no seasoning)
Discounted rates
Loan amounts up to $3.5M with CLTVs to 90%**
Bijan Farassat (917) 731-4870 bfarassat@ridgewoodbank.com NMLS ID# 646654
24/7 access through our online portal
Joseph Noviello (718) 240-4780 jnoviello@ridgewoodbank.com NMLS ID# 625762
*On primary residences. (LTVs apply). | **1–2 family and condo purchases and rate and term refinances – primary residences. | Terms and conditions subject to change without notice. Loans subject to credit approval. © 2021 Ridgewood Savings Bank. All rights reserved.
Jonny Fowler
Jonny has been in the mortgage industry for 27 years and has found his niche helping LO's and Realtors maximize their market exposure with his modern marketing classes. He genuinely enjoys helping people, which is why he has enjoyed such a fruitful career. Twitter Followers: 412 Facebook business page likes: 6,600 LinkedIn Connections: 28,215 Instagram Followers: 2,362
“I cannot express how grateful I am to have a broker relationship with Ridgewood. Time and time again, you’re the lender I count on for personal attention and unparalleled service.” Mary Ann Scaggs Sr. Mortgage Loan Originator Purchase, NY
www.ridgewoodbank.com
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SPECIAL SECTION
2021 MOST CONNECTED nmp
SILVER LEVEL CONNECTIONS CONTINUED Frank Fuentes
Adam Smith
As the first Hispanic/ bilingual loan officer hired at New American Funding, Frank Fuentes has devoted 20+ years to improving lending efforts to minority homebuyers. Today, Frank is the VP of Multicultural Community Lending and, through the company’s Latino Focus initiative, addresses the unique challenges that Hispanic homebuyers face.
Adam P. Smith is president of The Colorado Real Estate Finance Group Inc., and owner of Just The Tips Coaching. Adam has helped thousands of clients and written billions in mortgages. Adam has also coached hundreds of sales professionals on lead generation, client retention, repeat and referral prospecting, and zero-costmarketing. Twitter Followers: 973 Facebook business page likes: 4,997 LinkedIn Connections: 7,400 Instagram Followers: 1,781
Twitter Followers: n/a Facebook business page likes: 5,000 LinkedIn Connections: 14,683 Instagram Followers: 2,888
nmp
Mitch Valmer is the founder of Equity Cap Lending, a direct nationwide private money lending platform. Mr. Valmer has had the pleasure of serving his investors, borrowers & brokers over the last 18 years. Mr. Valmer is a part of several associations such as CAMP, AAPL & many others. Twitter Followers: 4,735 Facebook business page likes: 802 LinkedIn Connections: 4,803 Instagram Followers: 27,508
BRONZE LEVEL CONNECTIONS Rodney Anderson
Rodney Anderson is Supreme Lending's #1 producer. A prolific mortgage professional, he is a top originator of FHA and VA loans, a financial expert, published author, and radio host. Through his extensive use of social media, he is also an industry influencer who shares tips and tricks on his accounts. Twitter Followers: n/a Facebook business page likes: 7,452 LinkedIn Connections: 1,100 Instagram Followers: n/a
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Mitch Valmer
Lori Brewer
Lori Brewer is an accomplished entrepreneur and founder/ CEO of twotime Inc. 5000 company LBA Ware. The firm is best known for developing award-winning mortgage incentive compensation management platform CompenSafe and BI platform LimeGear. Brewer has been honored as a MBA Tech AllStar award for her contributions to mortgage tech. Twitter Followers: 253 Facebook business page likes: 332 LinkedIn Connections: 5,440 Instagram Followers: n/a
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David Hosterman
David has been nationally recognized as top loan officer in the country over the past few years. He has been in national publications such as Forbes, CBS Money Watch, The Street, US News & World Report, Lending Tree, Trulia, and MSN Money. He also has two radio shows on ESPN Radio. Twitter Followers: 247 Facebook business page likes: 940 LinkedIn Connections: 3,694 Instagram Followers: 359
100% ON MAKING
YOU LOOK GOOD 5-Star Support
Independently & Employee Owned & Operated
Practical Lending
Culture Driven
Savvy Technology
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$22+ Billion in Annual Volume • Top Mortgage Lender • Top Employer from DiversityJobs
Visit JoinAPM.com or contact Dustin Block at 303.378.3166.
©202 1 American Pacific Mortgage Corporation | NMLS #1850. All information contained herein is intended for mortgage professionals only and not for public distribution.
DIRECTORY
Calyx
Global DMS
www.calyxsoftware.com Dallas, TX & San Jose, CA
http://www.globaldms.com Lansdale, PA
We offer mortgage origination technology for small to enterprise level organizations.
Finicity
Global DMS offers the most advanced appraisal technology on the market called EVO™, engineered and designed for both commercial and residential appraisal business. With a purposeful departure from outdated processes of older platforms, EVO combines 100% configurability, boasts the most user-friendly navigation possible, a user-role based workflow, the easiest to use reporting engine, as well as the only true cascading decision tool.
a Mastercard company http://Finicity.com Salt Lake City, Utah
Finicity's Mortgage Verification Service is the one-touch, GSE-accepted digital verification of assets, income and employment. MVS leverages Finicity's open banking platform so lenders can use the best data from the best sources in the best way to deliver a winning lending experience for their customers and business stakeholders. Finicity also provides account validation services to mitigate payment risk, as well as the use of transactions, account history and statements direct from FIs that can be used for loan servicing or other needs.
Mortech a Zillow Group business https://www.mortech.com/ Lincoln, NE
As a pioneer in the digital mortgage era, Mortech provides mortgage professionals with a number of services and tools including Product Pricing, Online Rate Quoting, and Secondary Marketing solutions to help automate their workflow, giving them more time to focus on business growth. Product offerings: • Instant pricing from multiple investors at the touch of a button. • Streamlined secondary desk with tools such as historical pricing, centralized lock desk, and more. • Quote live mortgage offers to a broader audience with access to the largest portfolio of mortgage marketplaces. • Ability to re-capture current customers and gain new purchase leads with predictive analytics
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ReadyPrice http://www.readyprice.com San Jose, CA
ReadyPrice, powered by SitusAMC, is a leading mortgage technology connecting mortgage loan originators and lenders to support more efficient loan origination. Their technology enables MLOs to manage and choose pricing, run automated underwriting, and deliver approved loans to lenders at no cost to the MLO. For lenders, ReadyPrice provides an efficient way to scale their businesses, ensuring wholesale lending rates are included in every pricing engine search while providing brokers with the easiest path to directly transfer DU approved loans. ReadyPrice technologies support FNMA, FRE, FHA, VA, USDA, VA, and non-agency (non-QM, jumbo, etc.) loan originations.
SPECIAL SECTION
2021 MOST CONNECTED nmp
BRONZE LEVEL CONNECTIONS CONTINUED Eric Mitchell
Eric Mitchell, Goldstar EVP, develops innovative purchase market strategies proven to revolutionize the way loan officers and Realtors partner. Using award-winning application technology, Eric creates highly sought after state-of-the-art lead generation platforms that have delivered sustainable growth for the thousands of sales professionals he’s trained across North America. Twitter Followers: 400 Facebook business page likes: 904 LinkedIn Connections: 29,984 Instagram Followers: 1,279
Lynn ‘The Lynnder’ Reed
A nationally ranked loan officer with a larger-than-life personality, Lynn "The Lynnder" Reed, creates an exceptional mortgage process for his borrowers. With 21 years of experience and deep Texas roots, Lynn leverages social media to allow his connections to feel like they all personally know Lynn and his wife, Cookie. Twitter Followers: n/a Facebook business page likes: 3,291 LinkedIn Connections: 500+ Instagram Followers: 557
Sam Parker
Katy Parsons
Twitter Followers: 509 Facebook business page likes: 4,875 LinkedIn Connections: 989 Instagram Followers: 964
Twitter Followers: n/a Facebook business page likes: 4,767 LinkedIn Connections: n/a Instagram Followers: 4,138
Nick Roberson
Phil Treadwell
Twitter Followers: n/a Facebook business page likes: n/a LinkedIn Connections: 13,615 Instagram Followers: n/a
Twitter Followers: 1,774 Facebook business page likes: 1,234 LinkedIn Connections: 20,238 Instagram Followers: 3,148
Sam has been a key player in bringing quality and integrity to such a fragmented industry. Sam’s vision for how to treat people right, do what you say you’re going to do, and add more value than any other credit repair agency has been a key formula for his success.
Nick Roberson is a National AE for SRE Mortgage Alliance with 29 years of experience in the mortgage industry. Nick has been a guest speaker on industry panels, radio shows, webinars and has written numerous columns for trade publications. He is the president of the East Bay Chapter of CAMP.
HONORABLE MENTIONS John Cady, SVP of Retail, Cardinal Financial Company Brent Chandler, Founder and CEO, FormFree Kevin DeLory, Senior Vice President of Sales, Carrington Wholesale
Anthony Ianni, Northwest & Mountain Regional Sales Director, Mortgage Capital Trading Lana Izgarsheva, AD Mortgage, Chief Operating Officer Melanie Rojas, Account Manager, Genworth Mortgage Insurance
As well as originating, Katy of Advantage Mortgage cohosts the annual Mortgage Revolution conference in Las Vegas. She is looking forward to the world returning to normal, so they can start planning events again and getting originators from all over the country back in one room.
Phil Treadwell is a 17-year veteran of the mortgage industry as both a top-producing mortgage banker & independent mortgage broker. He is the national director of sales innovation & strategy for Thrive Mortgage, host of the Mortgage Marketing Expert podcast & cofounder of Industry Syndicate podcast network.
Nick Staker, Area Manager, Academy Mortgage Corporation Bernadine Torres, Mortgage Broker Owner/ Mortgage Loan Originator, Prominent 1
Financial Group
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EW SICHELMAN
RECRUITING, TRAINING AND MENTORING CORNER
Can You Say Inflation? Rates are likely to rise in the early part of next year and not in 2023
BY LEW SICHELMAN | NATIONAL MORTGAGE PROFESSIONAL CONTRIBUTING WRITER
O
ne of the nastiest words in the English language has reared its ugly head again. It has more than four letters, but for a business that rises and falls with interest rates, it’s as foul as any dirty word you’ve ever heard – or uttered. We’re talking i-n-f-l-a-t-i-o-n. It’s an economic cicada, coming back to haunt us every so many years. Some say the recent jump in inflation will subside once the economy gets back to normal. And the hope here is that it will. I’ve been around long enough to remember when mortgage rates were 16-17 percent. People still bought houses back then. But now, after seeing rates bumping along at 3 percent for months now, I wonder how many folks will remain in the market if rates should spike. Fortunately, no one is predicting double-digit loan costs, at least not yet. But it is a scary prospect. Indeed, in April, core inflation, which excludes relatively volatile food and energy prices, saw its biggest single-month surge in 39 years! Prices also rose 5.4 percent in June compared to a year ago, marking the largest spike since 2008. Reacting to the April number, “The last time inflation jumped that high in one month,” Danielle Hale, chief economist at realtor.com, pointed out, not only was Fannie Mae still FNMA, “the 30-year mortgage rate was 16.9 percent.” Hale, for one, doesn’t expect loan costs in the doubledigit range “anytime soon.” But she does expect them to follow Treasury yields higher as concerns about inflation could force investors to seek a higher return. That’s why she advised would-be buyers to jump on any house they find that suits their needs.
UNSUSTAINABLE TRENDS Robert Dietz, chief economist at the National Association of Home Builders, said policy makers in Washington need to address any number of unsustainable trends to mitigate inflationary forces. But job growth – or better yet, the lack thereof – was top-of-mind for him. Policy makers need to focus on a more efficient labor market, Dietz said. “Given the large amount of people who are currently unemployed,” he said, the difference between the number of jobs created and the number expected “is a mismatch that points to policy failure and a significant inflation warning.” At the time, the economy added just 266,000 jobs vs. the 900,000 or so that was expected – a difference Dietz called “a big miss.” But the next jobs report showed double that amount – 559,000 – were added. Still, employers are reporting difficulty in filling spots, and builders are right there with them. Later, the NAHB economist noted in another report that the increase in the Consumer Price Index in April was 0.8 percent on a seasonally adjusted basis, the largest increase since June 2009. And the 0.9 percent increase in the core CPI was the largest since April 1982. On a not seasonally adjusted basis, CPI was up a whopping 4.2 percent over the 12-month period, while the core CPI was up 3 percent. In May, the CPI rose by 0.6 percent, again the largest increase in a dozen years. But core CPI increased by 0.7 percent, also the largest increase in 39 years. Dietz advised his members to pay attention to “transitory” inflation, which is the term the Federal Reserve uses to describe what it believes to be a temporary run-up in prices resulting from an economy opening up after its pandemic induced nap. Watch, he said, to see if prices evolve into a broader inflation challenge.
INEVITABLE But as far as Joe Garrett of Garrett, McCauley & Co., the highly regarded banking and mortgage banking consulting firm, is concerned, there’s no question inflation is near. “All these price rises in commodities have to mean inflation is coming,” he wrote in an early June newsletter.
Ditto for Morgan Stanley Chief Executive Officer James Gorman, who predicted the Fed will to begin pulling back its bond buying – “tapering” has become the popular term for that -- toward the end of this year and start raising interest rates in early 2022. That’s sooner than the bank’s own economists forecast. “My personal view is rates are likely to rise in the early part of next year and not in 2023, which is currently the projection,” Gorman said during an online conference in Tokyo in late May. As Zillow economist Mathew Speakman sees it, the Fed is in a “tricky” position. “Measures of inflation have become increasingly relevant as markets gauge whether the combination of aggressive monetary and fiscal stimulus and the nation’s accelerating economic recovery will cause the economy to overheat and force the Federal Reserve to intervene,” he said in his weekly commentary. “The inflation figures present arguably the toughest test yet of the Fed’s commitment” to maintaining loose monetary policy. Keith Gumbinger, the vice president and resident mortgage expert at HSH Associates, the consumer-driven mortgage information publishing house, said the Fed needs to be more transparent about how far it will go before battening down the hatches. “What’s not clear – and needs to be made clearer sooner rather than later -- is how warm inflation will be allowed to run, and for how long a period of time, before policy is changed to temper it,” Gumbinger wrote in his weekly newsletter.
NOT WORRIED, BUT WARY Investors already have taken notice, he pointed, driving “the influential yield” on the 10-year Treasury close to the top of its recent range before settling back down. “Of course, this bit of firming will pressure mortgage rates to a degree, but provided they remain at about the 3 percent line, mortgage activity should remain pretty fair, if much diminished from the frenzy of late last year and early 2021 when rates hit all-time lows.” At Fannie Mae, economist Doug Duncan was taking a
cautious view. “Stronger inflation and a resultant move in interest rates are risks that should be monitored,” he said in one of his weekly commentaries. “As the effects of expansionary monetary policy continue to work their way through the economy, inflationary expectations may continue to rise. This could lead to prices rising further, even with growth concurrently slowing in the presence of diminished labor market slack and waning fiscal policy support. “If such a scenario were to play out, the question then becomes whether this necessitates a response by the Federal Reserve. While momentum in the housing market will likely continue in the near term, this is an increasingly important consideration for 2022.” In mid-May, Duncan said supply constraints across multiple sectors are pointing toward ongoing price pressures. The shortages have yet to significantly affect mortgages rates – except that the rise in the 10-year Treasury “contains an increased expected inflation component and has prevented mortgage rates from retreating further from their temporary recent peak.” Finally, let’s hear from the Fed itself. According to the minutes of its April meeting, some members believed “it might be appropriate at some point” to consider tapering asset purchases if the economy shows “rapid progress.” Purchases of Treasury bonds and mortgage-backed securities are running at about $120 billion a month. The meeting summary said this: “A number of participants suggested that if the economy continued to make rapid progress toward the Committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.” But after the “transitory” effects of supply chain issues fade, “participants expect measured inflation to ease.” That was in mid-May, before inflation and employment numbers were released. But in early June, Philadelphia Federal Reserve Bank President Patrick Harker reiterated that it’s not too early to start thinking about slowing the pace of asset purchases. “We’re planning to keep the federal funds rate low,” he said in remarks prepared for a virtual event. “But it may be time to at least think about thinking about tapering.”
All these price rises in commodities have to mean inflation is coming. NATIONAL MORTGAGE PROFESSIONAL MAGAZINE |
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FACEBOOK THOUGHTS
All That Glitters …
NICK ROBERSON
Nick Roberson
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Nick Roberson is a long-time mortgage industry veteran and a board member of the California Association of Mortgage Professionals. He’s a forthcoming and giving guy, who shares his … unique … perspective on work and life on his Facebook account. Here are some of Nick’s FB thoughts this month:
was leaning back in my office chair looking up at the ceiling, mentally processing some issues on a loan file while flipping an empty Vitamin Water bottle up into the air and catching above my head. On one toss, just as it was approaching the ceiling, Savannah walked in and said, “Hey, Dad”. I glanced over at her and said, “What?”, which was promptly followed by the bottle smacking me right in the forehead. I looked over at her while rubbing the spot on my head where it hit, and she said, “Wow, that worked out far better than I anticipated.” Then she laughed and walked out of the room. I am just so proud of her right now. I’m not crying, you’re crying. Savannah and I were just looking for a movie to watch. We stopped on one and I said, “How about this one? Are you okay with goofy and funny?” She said, “You’re goofy and funny and I put up with you!” Then she giggled hysterically. I think we will watch an emotionally scarring horror movie instead. This has been such a crazy week, but also extremely productive. I was just mentally drained. So, I got up extra early this morning, took a long walk, a cold shower, and decided to take myself out for breakfast. I pulled into the parking lot and noticed all of the lights inside were out and the door was locked. The guy sleeping by the front door told me the bar did not open until noon. What the heck! I thought everything was opened back up again. I went back home and whipped up some toast and scrambled eggs. WooHoo. Happy Friday to me! Today was one of those days where I was extra busy and distracted with work. My mind seemed to be in a hundred different places. Savannah decided to take advantage of the situation and was just messing with me a little bit all day. Every time I walked past her, she would trip me, throw something at me, or smack me with whatever was within her reach, and I would just continue with what I was doing. Towards the end of the day she stopped me as I walked through the room and asked, “What’s going on dad? Your force field seems to only be functioning at about 10% today.” Suddenly my mind played back her actions throughout the day, and I replied, “My force field may be only operating at 10%, but my weapons system is functioning at 100%.” It was at this moment that my daughter learned I am not
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
afraid to have a water fight in the house. I am pretty sure the neighbors thought she was being murdered. Yes, as a matter of fact, I will be sleeping with one eye open tonight. Savannah and I made a run to Costco yesterday. As we were pulling into the parking lot, the sun reflected off of her fingernails and caused a little disco ball effect on the dash. I said, “Wow your nails are very sparkly today.” Savannah said, “That’s because I put glitter on them. Don’t you ever put glitter on things to make them sparkly?” I smiled and began to reply, but could not even get a single word out of my mouth before she suddenly stopped me, “Never mind dad. I don’t want to know!” I laughed out loud and said, “Hey, I like sparkly things too.”She just put her hand out to shush me. We quietly walked to the entry of Costco with me giggling under my breath all the way. How to Glitter Bomb Yourself Step 1 – Store a box of your daughter’s craft materials and various glitter containers on a random closet shelf. Step 2 – Leave the box on the shelf until such time as you no longer remember the contents of the box. Step 3 – Tell yourself that you are sure you stored the power cord for the old Motorola flip-phone you just found in your drawer, in a box up on a shelf in the closet. Step 4 – Play your own version of Box-Jenga with the randomly stacked boxes on the shelf. Step 5 – Lose game of Box-Jenga and cause an avalanche of boxes, which allows for the forgotten box of craft supplies and glitter to strike the floor with sufficient force to ensure every container of glitter opens in all their magnificent hellish glory. Step 6 – Slowly wipe the glitter from your eyes and glance around the room in complete amazement at the seemingly impossible coverage you were able to achieve with that small box of craft supplies and glitter. Step 7 – Daughter steps out of her room, takes three steps, sees you and the house covered in glitter, turns, and goes back into her room without a word. Step 8 – Realize very quickly that the shop vac is no match for the glitter and might be making things worse. Step 9 – Pick up your bottle of glitter beer and take some pride in the work of art you have created.
To see more by Nick, just go to www.facebook. com/nickroberson.
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