National Mortgage Professional Magazine June 2018 by ambizmedia

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

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

BANK STATEMENTS TO $2,500,000 â&#x20AC;¢ 5000-ELITE-12BS - 700 Min FICO â&#x20AC;&#x201C; 12 Mo. Personal / Business Statements up to 70% LTV â&#x20AC;&#x201C; Starting at 4.875%* â&#x20AC;¢ 5000-12BS PLUS - 680 Min FICO â&#x20AC;&#x201C; 12 Mo. Personal / Business Statements up to 80% LTV â&#x20AC;&#x201C; Starting at 5.5%* â&#x20AC;¢ 5000-ELITE-24BS - 700 Min FICO â&#x20AC;&#x201C; 24 Mo. Personal / Business Statements up to 70% LTV â&#x20AC;&#x201C; Starting at 4.875%* â&#x20AC;¢ 5000-24BS - 660 Min FICO â&#x20AC;&#x201C; 24 Mo. Personal / Business Statements up to 90% LTV â&#x20AC;&#x201C; Starting at 5.625%* â&#x20AC;¢ 5000-24BS-NP - 580 Min FICO â&#x20AC;&#x201C; 24 Mo. Personal / Business Statements up to 80% LTV â&#x20AC;&#x201C; Starting at 6.25%*

NON-PRIME FULL DOC TO $2,500,000 â&#x20AC;¢ 5000-ELITE-FD - 680 Min FICO â&#x20AC;&#x201C; 5 Yrs BK, 5 Yrs Short Sale /Foreclosure up to 85% LTVâ&#x20AC;&#x201C; Starting at 4.75%* â&#x20AC;¢ 5000-NP - 600 Min FICO â&#x20AC;&#x201C; 2 Yr BK, 2 Yr Short Sale /Foreclosure up to 90% LTVâ&#x20AC;&#x201C; Starting at 5.625%* â&#x20AC;¢ 5000-RH - 500 Min FICO â&#x20AC;&#x201C; 1 Yr BK, 1 DAY Short Sale /Foreclosure up to 80% LTV â&#x20AC;&#x201C; Starting at 6.25%*

INVESTOR - NO INCOME LOANS TO $2,000,000 â&#x20AC;¢ 5000-INV-PP - 640 Min FICO â&#x20AC;&#x201C; No Income/No Employment/No Reserves Up to 75% LTV â&#x20AC;&#x201C; Starting at 7.25%* â&#x20AC;¢ 5000-INV-DTI-PP - 620 Min FICO â&#x20AC;&#x201C; No Employment/No Reserves/Qualify on Rental Survey Up to 80% LTV â&#x20AC;&#x201C; Starting at 6.875%* â&#x20AC;¢ 5000-INV-FN-PP - Foreign National Borrower â&#x20AC;&#x201C; No FICO/No Income/No Employment/No Reserves Up to 70% LTV â&#x20AC;&#x201C; Starting at 7.25%* â&#x20AC;¢ 5000-INV-DTI-FN - Foreign National Borrower â&#x20AC;&#x201C; No FICO/No Employment/No Reserves/Qualify on Rental Survey Up to 70% LTV â&#x20AC;&#x201C; Starting at 6.875%*

NEAR PRIME FULL DOC TO $2,000,000 â&#x20AC;¢ 5000-1YR TAX - 620 Min FICO â&#x20AC;&#x201C; 5 Yrs BK, 5 Yrs Short Sale /Foreclosure up to 85% LTV â&#x20AC;&#x201C; Starting at 5.75%*

FOREIGN NATIONAL FULL DOC TO $2,000,000 â&#x20AC;¢ 5000-FN - No FICO â&#x20AC;&#x201C; Income Docs up to 70% LTV â&#x20AC;&#x201C; Starting at 6.25%*

ITIN FULL DOC TO $600,000 â&#x20AC;¢ 5000-ITIN - No FICO â&#x20AC;&#x201C; Full Doc up to 90% LTV - Starting at 7.5%*

ASSET DEPLETION FULL DOC TO $1,000,000 â&#x20AC;¢ 5000-AU - 680 Min FICO â&#x20AC;&#x201C; Full Doc up to 75% LTV - Starting at 5.75%*

Interest Only Option

Exceptions

Non-Warrantable Condos

1-4 Units

Wholesale-Correspondent

www.GreenBoxLoans.com (800) 490-2274 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, VA#MC-6781, 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.

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table of

N A T I O N A L

The Mortgage Godfather: Throw in the Towel? By Ralph LoVuolo Sr.

J U N E

36 MBA’s 2018 Secondary Market Conference Survey Scorecard: A Report of Findings By Tom LaMalfa

44 Industry Mourns the Loss of Michael McHugh, Former Continental Home Loans Chief By Phil Hall

2 0 1 8

M O R T G

V O L U M

A SPECIAL FOCUS ON “MORTGAGE TECHNOLOGY”

B H

Alexa, Recommend a Great Home Loan and a Swordfish Recipe By Rick Arvielo ..................................................................................48 It’s About Time: New Innovations Drive Speed and Accuracy By Brent Rasmussen ..........................................................................52

A “ i

Avoiding the Pitfalls of Technology Implementation By Kyle Swensen ................................................................................54

W M

Engaging Technology: Tech, Training and Why It Matters in the Mortgage Space By Ken Perry ..............................................56

M C

The Dodd-Frank Rollback: Why Digital Mortgages Matter Even More Now By Curt Tegeler ......................................................58

T R

Automatic for the People: Mortgage Origination Without Manual Intervention By David Parker................................................60

Leveraging Tech’s Three Pillars at the Individual Level By Steve Richman ..............................................................................62

Bit-Trayal By Eric Weinstein ..............................................................64

FEATURES

ARMCP Nears Launch ........................................................................6

Does Your Daily Routine Impede Your Earnings? By Tom Hutchens ................................................................................8

The Elite Performer: The Balance Sheet Life By Andy W. Harris, CRMS ....................................................................8 Recruiting, Training and Mentoring Corner: Hiring for Technology By Dave Hershman ........................................................10 Want More Loans? Focus on Reviews! By Scott Harris ..................16 Technology, Can’t Live With It … ....................................................18 CFPB Addresses the Black Hole By Gavin T. Ales ..........................20

66 The Rise of Non-QM Lending: QM lending rising rapidly, but can we keep it safe? By Eric Wilson

V I S I T Company

Web Site

O U R

A D Page

Angel Oak Mortgage Solutions ............................ www.angeloakms.com ......................................Back Cover Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................17 Caliber Home Loans.............................................. www.caliberwholesale.com ................................................9 CAMP .................................................................. www.thecampsite.org/summer-camp-2018 ........................61 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................19 & 50 Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................51 Class Appraisal .................................................. www.classappraisal.com ................................................15 DocMagic .......................................................... www.docmagic.com ..............................................40 & 41

FAMP ................................................................ www.ourfamp.org/convention.php ..................................42

Do Listing Agents Sell Homes Too? By Brian Sacks

Hometown Lenders ............................................ www.hometownbranch.com ..........................................11

Flagstar Bank .................................................... www.flagstar.com/why ....................................................5 Fund Loans........................................................ www.fundloans.com ........................................................7 Greenbox Loans, Inc........................................... www.greenboxloans.com ..............................................IFC

Lykken On Lending ............................................ www.lykkenonlending.com ............................................46

MBANJ .............................................................. www.mbanj.com ..........................................................73

of contents

R T G A G E

U M E

1 0

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

N U M B E R

NAMB Perspective ............................................................................22 BrokerNATION: Independent Mortgage Originators: Chris Hendrickson, Beeline Mortgage By Andy W. Harris, CRMS ............34

Addressing Post-Housing Crisis Issues: How the CFPB “Submit a Complaint” Portal Helped With a Problem in Credit Reporting … and More By Pam Marron ............................38 Why Should We Care About Brand Awareness in the Mortgage Industry? By Mary Kamelle ..............................................65 MBA’s Mortgage Action Alliance: A Message From MAA Chairman Gene M. Lugat..................................................................72 The Marketing Tactic that Yields 4,300 Percent ROI Explained By Rosalie Berg ........................................................74

COLUMNS New to Market...................................................................................12 News Flash: June 2018 .....................................................................14 Heard on the Street...........................................................................32 Outstanding Places to Work.............................................................76 NMP Calendar of Events...................................................................77 NMP Resource Registry....................................................................78

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

Web Site

Page

MBS Highway .................................................... www.mbshighway.com/MNN ..........................................39 Mortgage Assurance, Inc. .................................. www.maibroker.com ......................................................57 Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................30 & 31 NAMB+ ............................................................ www.nambplus.com ......................................................25 NAPMW ............................................................ www.napmw.org ....................................................35 & 46 NAWRB ............................................................ www.nawrb.com ............................................................43 New American Funding ...................................... www.newamericanfunding.com ......................................80 NMP U .............................................................. www.nmpucoaching.com ..................................21, 55 & 71 NRMLA.............................................................. www.nrmlaonline.org ....................................................58 OSI Express........................................................ www.osiexpress.com/mlslink ............................................1 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................13, 53 & Inside Back Cover REMN................................................................ www.remnwholesale.com ..............................................33 Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................63 TagQuest .......................................................... www.tagquest.com ........................................................47 The Bond Exchange............................................ www.thebondexchange.com ..........................................59

JUNE 2018 Volume 10 • Number 6

1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com STAFF Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 ericp@mortgagenewsnetwork.com

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

Joey Arendt Art Director (516) 409-5555, ext. 323 joeya@mortgagenewsnetwork.com

Beverly Bolnick VP-Sales & Marketing (516) 409-5555, ext. 316 beverlyb@mortgagenewsnetwork.com

FROM THE

publisher’s desk

Making the Mortgage Business Work remember a time when you didn’t need a million dollars’ worth of technology to make a mortgage loan, but then I’m fast-approaching seven decades here and you see a lot in that amount of time. When it comes to technology, the more new tools we see, the faster we tend to see more new tools. It can be overwhelming, which is why we bring you our annual issue on technology.

When it comes to making this business work and getting our work done, it’s all about technology. No company serving a lender and no lender serving a borrower is doing it without these tools. The more automation you can employ, the more time and money you can save. Just don’t fail to offer your customers that human touch. I have no doubt Scott Koondel Phil Hall VP of Operations Managing Editor you’re looking for specifics. (516) 409-5555, ext. 324 (516) 409-5555, ext. 312 If you’re wondering what technology you need today, how you should use it and scottk@mortgagenewsnetwork.com philh@mortgagenewsnetwork.com exactly what benefits it promises your business, this issue was written for you. Inside, Richard Zyta Francine Miller Social Media Ambassador Advertising Coordinator you’ll find eight special articles that will answer some of the many questions you have (516) 409-5555 (516) 409-5555, ext. 301 richardz@mortgagenewsnetwork.com francinem@mortgagenewsnetwork.com and give you the kind of insight you need to bend technology to your will. Rick Grant Dylan Pollock The best place to start is at the beginning, so we offer you “Engaging Technology: Special Reports Editor Administrative Assistant Tech, Training and Why It Matters in the Mortgage Space,” by Ken Perry, President and (570) 497-1026 (direct) (516) 409-5555, ext. 314 (516) 409-555, ext. 311 dylanp@mortgagenewsnetwork.com Founder of The Knowledge Coop. This is an excellent piece for strategic managers who rickg@mortgagenewsnetwork.com need to know the “why” before they pull the trigger on a new tool. ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact But if you’re working in this business, you will pull the trigger. Your customers will VP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail beverlyb@mortgagedemand it. For more on that, see David Parker’s, article, Director of Product Strategy for newsnetwork.com. Fiserv LoanComplete, “Automatic for the People: Mortgage Origination Without Manual ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck Intervention.” at (516) 409-5555, ext. 312 or e-mail ericp@mortgagenewsnetwork.com. The deadline for submissions More borrowers asking for a better mortgage loan origination process. If they’re not is the first of the month prior to the target issue. asking you, they may be asking your competition or their internet appliance. Doubt us? SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@mortgageSee “Alexa, Recommend a Great Home Loan and a Swordfish Recipe,” by Rick Arvielo, newsnetwork.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. Chief Executive Officer at New American Funding. Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the It’s not just the new generation of home loan borrowers who are interested in a better, authors alone and do not imply the opinion or endorsement of Mortgage News Network Inc., or the offimore advanced mortgage process. The best lenders know how important this for cers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) improving their bottom lines and speeding up the origination cycle. Don’t miss “It’s and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activAbout Time: New Innovations Drive Speed and Accuracy,” from Brent Rasmussen, ities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement Executive Vice President and Chief Information Officer at Carrington Mortgage Holdings of the product and/or services by Mortgage News Network Inc., NAMB, NAPMW, NCRA, and other state mortgage trade associations. for more on this. National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage Management may want to save time, reduce costs and increase customer satisfaction, trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in Mortgage but a good loan officer just wants to get more loans closed. How can an individual best 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. leverage the technology offered by her company? Read “Leveraging Tech’s Three Pillars at the Individual Level,” by Steve Richman, Genworth Mortgage Insurance’s National Spokesperson and Customer Sales Trainer, for insight. Not even the world’s best technology will help a lender do better if it never gets installed. If you’ve been in this business for very long, you’ve heard the horror stories of installations gone wrong. Avoid all that by checking out “Avoiding the Pitfalls of Technology Implementation” by Kyle Swensen, Director of Information Technology for Castle & Cooke Mortgage LLC. Finally, we need to clear the air on the compliance topic. Lenders have been driven to spend more money on regtech to keep pace with the changing rules, but now that Dodd-Frank is rolling back, will all that go away? Don’t bet on it. In fact, Curt Tegeler, President and CEO of WebMax makes a great case in his article, “The Dodd-Frank Rollback: Why Digital Mortgages Matter Even More Now.” We’re very proud of this month’s special focus section, but we also bring you all the great content you expect every month in National Mortgage Professional Magazine. This month, don’t miss a special feature from Tom LaMalfa entitled, “MBA’s 2018 Secondary Market Conference Survey Scorecard: A Report of Findings.” This may be the most comprehensive look at the 20th annual study you’ll read anywhere. We also bring you some very valuable marketing information. From Brian Sacks, see “Do Listing Agents Sell Homes Too?” and Rosalie Berg, President of Strategic Vantage, offers “The Marketing Tactic that Yields 4,300 Percent ROI Explained.” From a product perspective, SLK Global’s Vice President and Business Lead for Mortgage Eric Wilson brings you, “The Rise of Non-QM Lending: Can we keep it safe?” Spoiler alert … of course we can—and we must! Find also the trade association news, compliance information and general thought leadership designed to help you grow the very best mortgage firms. I wish you the best of luck with that and hope you enjoy this issue. Sincerely,

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

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FHA Neighborhood Watch, Q4 2017 Inside Mortgage Finance, Q4 2017 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.

n National Mortgage Professional Magazine n JUNE 2018

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#1 National FHA Wholesaler1 Top 10 TPO2 3x Fannie Mae Star Performer Servicing Award

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

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

B O A R D

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

Rocke Andrews, CMC, CRMS Treasurer Rocke.Andrews@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 Burkley, CRMS George.Burkley@NAMB.org

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

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

Olga Kucerak, CRMS Olga.Kucerak@NAMB.org

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

2018-2019 NAPMW NATIONAL BOARD OF DIRECTORS

JUNE 2018 n National Mortgage Professional Magazine n

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Laurel Knight-Keane National President President@NAPMW.org

Glenda Mooney President-Elect PresElect@NAPMW.org

Tobi Libbra Vice President NVP1@NAPMW.org

Rolanda Legg Vice President NVP2@NAPMW.org

Jaclyn Weedin Secretary NatSecretary@NAPMW.org

Nicole Shea Treasurer NatTreasurer@NAPMW.org

Robin Hart Parliamentarian Parliamentarian@NAPMW.org

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

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

ARMCP Nears Launch As Association of Residential Mortgage Compliance Professionals (ARMCP) now consists of 1,600 members, the association is closer than ever to launching its new Web site. This will be a state-of-the-art Web site designed specifically to fulfill the needs of residential mortgage compliance professionals. Recently, ARMCP announced the formation of a pre-launch Web site Committee to put the finishing touches on the new site. ARMCP is a national organization devoted exclusively to residential mortgage compliance professionals. The association’s membership consists solely of those members who have joined on their own, one at a time, and were not solicited to join via solicitations from news lists or magazine subscriptions. ARMCP’s independence is the key to the value of its advocacy! If you would like to refer an individual for membership, please visit ARMCP’s LinkedIn group or e-mail Info@ARMCP.org for an invitation. There is no cost for membership, and new members are welcome. For more information, e-mail Info@ARMCP.org.

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n JUNE 2018

Does Your Daily Routine Impede Your Earnings? By Tom Hutchens

JUNE 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

ood habits and routines are important, but, they can also limit your earning potential by inhibiting interest in the latest trends, products and opportunities.

In meeting with successful Mortgage Originators and Brokers, I observe that too many of them rely exclusively on tried and true qualified mortgage borrowers, allowing homebuyers with non-conforming income and credit histories look elsewhere. Recently, a successful Broker told me he declined to handle a home loan for a self-employed tennis coach. The borrower’s credit was fine, and he offered a significant downpayment. But, the Loan Officer was unwilling to venture outside his conventional loan comfort zone to work with a non-QM lender even though the compensation would have been greater. “It’s just not what I do,” he told me. Those famous last words have been spoken by countless business people who were too busy to plan for the next big thing. The risk is that our industry has always been a cauldron of change. History shows that Originators will pay a price for relying exclusively on the lowest hanging fruit. Local relationships and referrals will always be important, but entrepreneurial Originators are increasingly challenged to compete against players like Quicken Loans, Lending Tree and other volume lenders who can afford to work on narrow margins and have unlimited marketing resources. That is why astute Loan Officers (in the same way that companies pursue research and development) should temper their tried and true habits by learning about non-traditional loans. You can earn higher commissions, offer solid products that few others have, and have a means of leverage against potential weakness in the QM marketplace products. The non-QM mortgage business is growing exponentially, driven almost entirely by mortgage professionals who seek solutions for borrowers who have atypical income or credit histories. Finding these potential borrowers is not hard, but takes dedicated approaches. You may think that is easier said than done when your typical day is already filled with handling traditional loans. However, these borrowers are everywhere and at your fingertips. In next month’s article, I will tell you just where to find them. But don’t wait to start learning about these new products, the creditworthy people who need them, and where they can be found. Schedule a meeting with your local Angel Oak Account Executive (AngelOakMS.com). That first meeting should not take too much time, but could inspire you to change your routine and propel your earnings to new heights.

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

SPONSORED EDITORIAL

nmp news flash

continued from page 16

Study Finds Quicken Loans Dominates TV Mortgage Advertising

When it comes to television advertising among mortgage lenders, Quicken Loans is the dominant presence for small-screen commercials, according to a study from Kantar Media. But the Detroitbased lender came in second to LendingTree for the online paid search marketplace. Between March 1 and May 21 of this year, Quicken Loans spent $57.3 million on network, cable, syndicated and spot TV advertisements. This accounted for nearly 70 percent of total spend across 334 advertisers sponsoring home mortgage commercials during the period. Quicken Loans’ spending was so significant that the second ranked mortgage advertiser, Navy Federal Credit Union, only spent nearly onetenth as much as Quicken Loans on TV ads, $5.9 million. The other top five advertisers spent even less: AAG ($1.7 million), Ally Bank ($1.5 million) and CashCall Mortgage ($1.3 million). However, three of the nation’s largest mortgage lenders were barely visible in television advertising during this period: US Bank spent around $90,000 on mortgage-related commercials, while Wells Fargo spent less than $20,000 and Bank of America ran no mortgage advertising. Kantar Media found Quicken Loans’ commercials were divided between promoting its own mortgage services and its Rocket Mortgage and One Reverse Mortgage sub-brands. The company also raised its profile with an advertising tie-in to the “Avengers Infinity War” film and with spots featuring comedian KeeganMichael Key and cartoon characters Yogi and Boo-Boo Bear. Over on the Internet, LendingTree was the top mortgage company in the paid search category, garnering 28.2 percent of all clicks on the mortgage keyword group during the period. Quicken Loans ranked second with a 19 percent click share, followed by Bank Rate (12.6 percent click share) and two review sites that are paid on a per lead basis by advertisers: ConsumersAdvocate.org (10.2 percent click share) and Top10MortgageLoans.com (6.4 percent click share). Quicken Loans was the only advertiser that had a strong presence

in both television and paid search advertising. Among the top TV mortgage advertisers, Navy Federal Credit Union and Ally gained a respective 0.7 percent and 0.4 percent click share during the period, while there was scant paid search activity for CashCall Mortgage during the period and none from AAG. For the three largest mortgage lenders, Wells Fargo saw a 1.8 percent click share during the period, while US Bank produced a 0.5 percent click share and Bank of America 0.1 percent click share. National Median Rent Down in June The national median rent for a onebedroom unit for June is $1,005, down slightly from $1,105 in May, according to new data from ABODO. The national median twobedroom rent for June is $1,220, down from $1,230 in May. Within the one-bedroom unit sphere, St. Paul, Minn., and Fargo, N.D., saw the greatest rent declines with drops of 8.6 percent and 6.8 percent, respectively. On the flip side, New York City and Norfolk, Va., each recorded onebedroom unit rent increases, followed by New Haven, Conn. With a 4.8 percent upswing. For two-bedroom units, Buffalo, N.Y., and St. Paul saw the greatest declines with respective decreases of 8.2 and 5.7 percent, while New York City had the greatest increases with a 9.4 percent rise. And, once again, San Francisco led the nation with the most expensive rents: a median onebedroom rent of $3,350 and a median two-bedroom rent of $4,394. 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.

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Message From NAMB 2017-2018 President John G. Stevens, CRMS NAMB has been around for 45 years. We have seen good times, and bad times in our industry. But through it all, NAMB is stronger now than it has ever been. Many may question how we have survived all of these years. Sam Walton can tell you the secret to that better than anyone else: “We’re all working together … that’s the secret.” That truly is the key to making a difference in this great nation of ours. Putting aside our differences to work towards a common goal. Easier said than done, but the results speak for themselves. There are, and always will be, issues that we will have to face as an industry. Some of those hurdles will seem insurmountable. But by working together, we can and will overcome any obstacle put in our way. Over the last month, I have heard some Loan Officers talk about many different issues that they feel are more important than others. This is great! Bring those issues forward. Make your voice heard here at NAMB and let’s work together to fix the problems we are facing. The worst thing we can do as an industry is to remain quiet when we see a problem. That’s the difference between someone who is in the industry to just make money and someone who is working in a career.

The desire to make our industry better

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When I first joined NAMB, it was through my local chapter, the Utah Association of Mortgage Professionals. I was invited to participate in a luncheon, and I must admit, I was worried about meeting with a group of competitors. Would we be able to see eye to eye? Would they be willing to even talk with other people on the issues? I went, I participated and quickly found out that these were not my competitors, they were my peers. I continued to attend, and never looked back. I became fully invested in the idea of working together as Loan Originators to make our industry better. We have accomplished many great and wonderful things here at the NAMB, with the help of every one of our state chapters. We know who we are. We know who we represent. The secret to our success is that we are working together to make this the best industry to work in … to ensure that the American Dream stays alive and well. I invite each and everyone one of you to become a part of this great association. Sincerely,

John G. Stevens, CRMS President of NAMB

“The secret to our success is that we are working together to make this the best industry to work in … to ensure that the American Dream stays alive and well.”

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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NAMB’s Membership Minute: June 2018 By George W. Burkley III, CRMS

own busy loan books to manage on top of their mentees, and at times, their mentee will have to take the back seat. Thus, a dedicated and loyal full-time mentor relationship is a must. You need to find a mentor who will hold you accountable for your own success.

Starting out in a new venture such as the mortgage industry can be daunting and trying to stabilize and strengthen an existing mortgage business can be just as tough. This month, we have put together five handy tips to help you grow and promote a successful career in the mortgage brokerage industry. These tips and recommendations should help you achieve future success for years to come.

A $120 yearly Professional Membership in NAMB will give today’s Mortgage Broker/Originator the opportunity to build great relationships with fellow Mortgage Brokers/Originators, Wholesale Lenders, and clients which will make you the best option for your client’s next mortgage. You have the opportunity to make a difference with every client. For more information on NAMB membership, visit NAMB.org.

Network, network, network … constantly A successful Mortgage Broker is always looking for ways to nurture their clientele and generate fresh business deals. Whether they are looking for new clients or looking after old ones, their networking mode doesn’t have a pause button. Potential mortgage deals are all around you, at the gym, the supermarket, the Little League field, at school pickups/drop offs, and it’s knowing how to find them that cultivates your success. The art of schmoozing certainly shouldn’t involve harassment or an “in your face” style of marketing, rather, it should involve listening for triggers and proactively responding to the call. Successful Mortgage Brokers are a helping hand, not a pushy salesperson.

Stay curious The saying “curiosity killed the cat” never made sense to me anyway. Curiosity is essential in learning and developing your skills, in finding out more about your client’s financial situation, and in knowing all there is to know about the lending landscape. If you see a dubiously low interest rate offered by a lender, ask questions, “What’s the catch?” How are you able to offer a rate so much lower than your competitors? Your clients will benefit from your inquisitive nature, and as a result, you will procure a loyal customer base (who will hopefully tell all their friends about their exceptionally knowledgeable broker!). Find a great mentor As we all know, new entrants into the Mortgage Broker industry require mentoring in order to become fully qualified and successful. If you form a relationship with a lackluster mentor who cannot find the time to look after you properly, not only is this going to stunt your career progression, but it is going to give you a bad taste of the industry. Many accredited mentors still have their

By Linda McCoy, CMRS

Much of what we do as mortgage professionals to get our name out there involves marketing. As Chair of the NAMB Certifications Committee, I was trying to figure out how to effectively market certifications. I could always hire a marketing company, but no, I do not have a budget for that. I can think of one method of marketing that has no budget and it would be word of mouth marketing. Word of mouth, via social media channels, has become or surpassed traditional avenues of advertising. We could always ask Mortgage Originators why they have not signed up yet to become a certified mortgage professional. If we put an article on the topic on NAMB’s Facebook Page, how many people would see it? I could ask you to tout the benefits of NAMB certification on LinkedIn if you were one of the lucky ones who have dedicated the time to obtain their certification. There is also Twitter as a social media outlet. We could say something that could really stir people up. I am very grateful to have this forum in the pages of National Mortgage Professional Magazine to convince NAMB members to take the leap and start studying for your Certified Residential Mortgage Specialist (CRMS) or Certified Mortgage Consultant (CMC), but I need some feedback. Please e-mail me why you would like to get a designation or why you don’t want one. This way, I could gather some data that could be helpful in my research for the pros and cons of certification. Marketing does not have to cost a lot of money to be effective, but it does need to make people stop and think. I would like for anyone who has ever had a certification to e-mail me and give me your thoughts, good or bad. Has NAMB certification helped you in your business? Did it make you feel special? Ask yourself some questions, put them down on paper and e-mail them to me at Linda.McCoy@NAMB.org This is marketing! 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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Be driven and passionate Complacency doesn’t reap success, determination and passion does. If you sit at home, expecting the deals to come to you without any effort on your part, then this “mortgage brokering” thing may not work out too well for you. There will be highs and lows in your career, and one must endure the lows in order to experience the highs. Remarkable drive is what separates the great Brokers from the mediocre. Where the mediocre ones might proclaim a deal is “too hard,” the great Brokers will make changes to achieve results.

NAMB Certification Committee Update

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Embrace new technologies “Old trusty” is good, “new and improved” is better. To be a successful Mortgage Broker to be successful in any career, really you need to be ready to embrace modern technologies that have been designed to make your job easier. If you have always performed a process a way, without any review system, chances are there is now a more efficient and effective means of doing so, thanks to our ever-evolving digital society. Ditch the paper processes and embrace automation and innovation. Once you experience increased levels of productivity, and a larger loan book as a result, you’ll never look back.

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 Education Foundation Update By Rocke Andrews, CMC, CRMS

NAMB has formed a non-profit education foundation for the purpose of providing high-quality education to our members and their employees. Currently, we have a classroom Continuing Education (CE) class available for the states, as well as an online eight-hour national CE class. We also just added a 20-hour, instructor-led, online pre-licensing course that is getting great reviews. The national pass rate first-time applicants taking the licensing exam was 59 percent out of 65,360 taken. Subsequent attempts have only a 43 percent passing rate, so it is better to pass the first time. Our new online class is taught by Deb Killian, who has been having a phenomenal first-time pass rate of 90 percent though on a much smaller sample of 20 students. We think this pass rate will continue to grow and urge you to utilize this course for those interested in getting their license. Contact the NAMB office at (202) 434-8250 or me directly at Rocke.Andrews@NAMB.org and we will get you the information until we get the NAMB Foundation Web portal up and operational. We are also in the process of adding the Certification Prep Class, as well as other small business classes. If you have something you would like to see added, please send me an e-mail at Rocke.Andrews@NAMB.org. We are thinking of adding classes covering small business accounting, compliance, security, etc., to help small business owners be more successful. Longer term plans include adding processing as well as FHA, VA and USDA training classes We are just starting, but are looking to provide quality classes at reasonable prices to better your profession and work experience.

NAMB Swarms Coming Soon … Join NAMB, the Young Mortgage Professionals Association (YMPA) and National Association of Professional Mortgage Women (NAPMW) for the upcoming “NAMB On the Road” events now titled “NAMB Swarm,” sponsored by United Wholesale Mortgage. This day-long event is filled with a variety of speakers that will provide those in attendance with great information and useful tools that can be used to help grow and improve your business! The cost for this session is only $40 per person and includes breakfast and lunch! Upcoming NAMB Swarms: l Thursday, Sept. 13 at the Boston Marriott Burlington in Burlington, Mass. l Dates to be determined in Des Moines, Iowa, and Baton Rouge, La. For more information on upcoming NAMB Swarm events, visit NAMB.org.

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Rocke Andrews, CMC, CRMS is Treasurer of NAMB. He may be reached by e-mail at Rocke.Andrews@NAMB.org.

NAMB National 2018 Saturday-Monday, December 8-10 Caesar’s Palace 3570 South Las Vegas Boulevard • Las Vegas NAMB is excited to announce that NAMB National 2018 will be held at the Caesar’s Palace in Las Vegas, from Saturday-Monday, Dec. 810. As famous as Las Vegas itself, Caesar’s Palace is the best-known casino resort in the world—and with good reason. What began as a grand casino honoring the indulgent luxuries of ancient Rome has somehow evolved into something even more spectacular. Caesar’s Palace is renowned for impeccable service and attention to detail, and conference exhibitors and attendees can rightly expect the same. In fact, the only thing that can ever surpass their commitment to provide an extraordinary experience for their guests is their commitment to make planning it simple and effortless for you. Limited space is available ... sign up today! For more information, visit NAMB.org.

Save the Date … NAMB 2019 Legislative & Conference Thank you to all who attended the 2018 NAMB Legislative & Regulatory Conference in Washington, D.C. Be sure to mark your calendar for Saturday-Tuesday, May 4-7, 2019 at the Liaison Capitol Hill Hotel, 415 New Jersey Avenue NW, Washington, D.C. for the NAMB 2019 Legislative & Regulatory Conference! Details will be made available in the coming months on NAMB.org.

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, At NAMB+ our mission is to be the trusted source for critical business and technology solutions for mortgage professionals. Our NAMB+ Endorsed Providers are each carefully selected to help you save money, stay connected with clients and referral sources, and work smarter not harder to grow and sustain your business. We evaluate every NAMB+ Endorsed Provider based on a number of criteria including, but not limited to, their experience working in and with our industry, their reputation and commitment to customer service and their support for NAMB and for mortgage professionals generally. Like you, we are mortgage professionals, so we know first-hand the business challenges you face on a daily basis. We volunteer our time with

NAMB+ to try and put our experience to work for you by building relationships that will help you meet those challenges. We also understand the stress and wasted time that can come with ineffective products and poor customer service, so we ask the questions that you are likely to ask before we ever introduce a new NAMB+ Endorsed Provider, and we only introduce you to exceptional product and service providers who are committed to helping you reach your goals. Sincerely,

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

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

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

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.

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.

25 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.

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. 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.

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

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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.

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.

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

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CalSurance® offers competitively priced Professional Liability Insurance for NAMB members. Multiple coverage options and an easy application process are available.

borrower conversions, reduce origination costs and integrate with other innovative technologies in the mortgage industry. NAMB members will receive a 25% discount.

N A M B

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NAMB Visits D.C. for the 2018 Legislative &

May 5-8 at The Mayflower Hotel in Was

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e & Regulatory Conference

Washington, D.C.

01-Utah Rep. John R. Curtis meets with fellow Utahan, NAMB President John G. Stevens 02-Members of the Utah delegation prepare to meet with Rep. Chris Stewart during NAMBâ&#x20AC;&#x2122;s Lobby Day 2018 03-Members of the California delegation visit the halls of Capitol Hill 04-Members of Californiaâ&#x20AC;&#x2122;s delegation George Duarte (left) and Audrey Boissonou (right) meet with Congressman Mark DeSaulnier 05-Michelle Velez, Dawn Cychner, Linda McCoy and Audrey Boissonou pause for a photo during the 2018 NAMB Legislative & Regulatory Conference 06-Bill Moore, Cindy Wingo and Ron Henderson of the California delegation visit Capitol Hill on Lobby Day 07-Dan Smith, Assistant Director, Office of Financial Institutions and Business Liaison at Consumer Financial Protection Bureau (CFPB), addresses NAMB members in attendance at The Mayflower Hotel 08-Bill Posey, U.S. Representative from the state of Florida, with NAMB President John G. Stevens, in D.C. 09-Members of the California delegation, including Dale DiGennaro, George Duarte and Audrey Boissonou meet with Rep. John Garamendi (second from right) 10-Paul Ferree, NMLS Senior Director, Data Analysis, addresses members of the NAMB during the 2018 Legislative & Regulatory Conference 11-Audrey Boissonou of California pauses for a photo with Dan Smith, Assistant Director, Office of Financial Institutions and Business Liaison at the CFPB

Throw hy? What’s the reason you want to quit? What’s going on in your life that causing you so much distress that you cannot do it anymore? Someone said “No!” to you. So, you think that’s enough reason to walk away with your tail between your legs. Maybe you should run. You don’t like the situation you’re in? What are you willing to do to correct it? What could you do that might make it better? I recently gave a seminar to about 60 people for the Florida Association of Mortgage Professionals. Those 60 people couldn’t get enough of me. Someone even tried to tear off my shirt. People were throwing things at me. Thank God they missed. Okay, I’m exaggerating, but here is something that is real: I’ve been trying for a very long time to be afforded the opportunity to speak to this sort of group. It is my desire to be able to give at least one seminar or Webinar to a group every week. But having people ask me to perform my hardearned skills doesn’t happen overnight. The number of times I’ve written about my experiences as a Loan Officer are legendary. I don’t want to bore any of you one more time, but there are some things that need to be repeated as often as you’ll read them. People don’t generally buy from you the first time you ask them. People wander into a retail store looking for something and every one of the people who work at the store hope that the wanderer will create a buying opportunity for them. That is “expectation” and we need to lower our expectation of success, yet we must soldier on until we succeed. The retail store must create reasons for more people to walk in the store and buy something. They need to give

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The

Mortgage

Godfather

w in the Towel? value as The number one reason WHY people will walk in the store. Do you really believe in your “Self”? My wife believes in me to the extent that I sometimes do things that I didn’t think I could do. I’m older than almost everyone who is reading this, yet, I work 10-12 hours every day to try to do things that will help you be more successful. It started just after Chris and I were married, and she asked me if we could have a carpet in our den. I said “of course.” So, I got a couple of my friends and we went to a house in the neighborhood, made sure noone was home and we went in the den, moved the furniture out of the way and rolled up the carpet. We walked down the steps and down the street and went to my apartment and laid the rug out in our den. You remember that from my first movie? My wife loved that rug and it’s the same rug I used to roll up one of the guys from another crew who needed to go. I accomplished two things by what I did: My wife learned to trust me, and my own crew learned that I did what I said I would do. You remember that all from the movie, right? Trust and communication are the foundation of business. Of course, I compare my own three rules of sales to Simon Sinek’s “Golden Circle” where he shows us all that we need to know why we do what and how we do what we do. I sincerely believe that if you give value to everyone you want to do business with (WHY), that if you apply the Law of Reciprocity and discuss it with your referral sources (WHAT) and you do it persistently (HOW) you must become the person you want to be. It is not possible to fail. BUT, you MUST do what I just wrote. When James Ivory won the Academy Award this year for writing the best adaptation of a book and I saw him walk down the aisle using his cane to assist him, I cried. Why? He’s 89years-old and has been

“Trust and communication are the foundation of business.” nominated three times before but not won. Eighty-nineyears-old and he’s still working. What did he do that created that win? He knew WHY he got out of bed every day and what he was doing and how to do it. He gave value, received value in return and did it until he was recognized for his work. The world is a little topsyturvy right now. There are so many changes occurring that amaze me, so I decided that for me to give my clients more value I needed to start living in the 21st Century. I recently participated in a Webinar given by Top-of-Mind (Surefire) and saw things that I talk to you and write to you about almost every day. I consult with a company that has about 90 salespeople. That company has contracted with Surefire to make Top-ofMind available to every salesperson in the company. My research, although a bit biased and surfaced leads me to believe that about three to four salespeople in the whole company use the system that they are paying for to the full extent that it is capable of. The creators of the system seem to have thought of everything and all the salespeople need to do is use it. For the past three days, I’ve been intermittently, yet seriously tutored by a close friend of mine who is acting as a marketing assistant for one

of my clients. She is teaching me how to use Hootsuite.com, another extremely beneficial system that I encourage you to learn and use. Finally, if you’ve seen my videos recently, you’ll notice that I’m sponsored by Evaluationzone.com, a company that is an appraisal management firm owned by a young man, Luke Tomaszewski, who is a genius. I don’t use that term lightly. He has created a way of being able to supply you

BY RALPH LOVUOLO SR.

with an appraisal in 15 minutes. If you want to check as to whether I’m exaggerating, please look at the Web site to determine if I’m a truth teller. In addition, at our first meeting, he explained that soon we will have holograms available on our computers of the entire neighborhood in the area we want to buy a home in. Then we will be able to walk through the home we are interested in from our laptop. So, I’m catching up to a few of you Millennials and computer geeks, but I’m not going to allow you to sway me from the fact that there is nothing better than sitting in front of a referral source and giving them a value proposition that helps them grow their business and doing it persistently. Go deep with a few targeted referral sources. And you don’t need to steal a rug and give it to them. All you must do is ask me for my list of 80 Ideas, my Goals Forms and my Self-Examination Form. I’m here to help you.

Ralph LoVuolo Sr. has nearly 60 years history in the mortgage business. He was a Co-Founder/President of the NYAMB and a long-term member of the Board of Directors of NAMB. The Mortgage Godfather is available to help your salespeople do more business. He does sales rallies, Webinars, personal coaching. Call, text or e-mail (917) 5761230 or e-mail Ralph@MortgageGodfather.com.

We are featuring a directory of lenders who have remained in support of the wholesale channel or have recently opened wholesale divisions. Please share some details about your company for a free listing in the September 2018 edition of National Mortgage Professional Magazine and on our website.

nationalmortgageprofessional.com/2018-whos-wholesale

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Recap of key economic events that took place over the past week and a look ahead to events that will potentially impact interest rates in the housing market.

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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 Opens New N.C. Branch and Expands Into Coachella Valley

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New American Funding has announced the opening of a new Charlotte branch in the heart of the city’s South Side. “Charlotte is one of the fastestgrowing housing markets in the nation, and it has a rapidly growing Hispanic population,” said New American Funding Branch Manager Oscar Reto. “This is a great opportunity for New American Funding to serve today’s homebuyer.” Reto, a long-time Charlotte resident and fluent Spanish speaker, was identified to spearhead the expansion due to his track record in the industry and active community involvement. He has more than 15 years of mortgage experience as a topproducing Loan Officer and Branch Manager and was the founder and first President of National Association of Hispanic Real Estate Professionals (NAHREP) Charlotte. “He’s very well respected throughout the industry and his leadership style is in direct alignment with our values,” said New American Funding Regional Manager Gina Spearman. “He puts the needs of his team, customers and partners first. He’s the essence of a servant leader and excellent match for our culture.” New American Funding is also expanding its Southern California territory with the grand opening of a new location in Indio, Calif. The company opened the Indio branch after recognizing a need in the Coachella Valley for affordable loan programs that could accommodate a diverse range of borrowers.

“We’re excited to serve an underserved community. We have options as diverse as our clients,” said New American Funding Branch Manager Sandra Magana. “We have the right loan products to assist today’s homebuyer in East Coachella Valley.” As a native of the Valley and fluent Spanish-speaker, Magana was identified to expand the company’s footprint due to her inmarket experience and ability to effectively serve the region’s growing Hispanic population. “My biggest passion is helping farm workers find affordable housing,” said Magana. “Our programs can help residents become homeowners whether they’re self-employed or a seasonal employee.”

Hettinger, Executive Vice President of Operations for Guaranteed Rate. “With the successful launch of FlashClose, powered through our partner DocMagic, this tool adds speed, convenience and accuracy to the closing process.” Dominic Iannitti, President and Chief Executive Officer at DocMagic, said, “Guaranteed Rate is a leader in mortgage technology innovation and collaborating with them on this project has created a solid hybrid eClosing approach that saves a lot of time for both borrowers and closing agents. The fashion in which Guaranteed Rate is leveraging our technology has resulted in the successful adoption of a sound, compliant, secure hybrid eClosing that is unique to their retail lending business strategy.”

DocMagic and Guaranteed Rate Partner to Reduce Closing Times

Flagstar Acquires 52 Midwest Wells Fargo Branches

DocMagic has announced that retail mortgage lender Guaranteed Rate can now cut closing times by electronically signing mortgage closing documents in advance via “FlashClose,” which allows customers to opt-in, review and complete most documents in advance of the notary arriving, saving an hour or more at the closing table–with some averaging a mere 10-minute appointment to provide inked signatures. “Guaranteed Rate is always looking for ways to simplify the process using innovative technology to enhance the customer experience,” said Jim

Troy, Mich.-based Flagstar Bancorp Inc. has announced that its Flagstar Bank FSB has signed a definitive agreement to acquire 52 Wells Fargo Bank branches in Indiana, Michigan, Wisconsin and Ohio, with approximately $2.3 billion in deposits and $130 million in loans, along with certain related assets. The 52-branch purchase covers 33 locations in Indiana, including 26 branches in the Fort Wayne metro market, along with 14 branches in the Upper Peninsula of Michigan (number one market

share), four in Wisconsin and one in Ohio. The transaction will raise Flagstar’s operations to 151 branches in the Midwest, plus eight in California. Flagstar stated it would keep all branches and retain all Wells Fargo employees. Financial details of the transaction were not immediately disclosed, although Flagstar said it will pay an effective deposit premium of approximately seven percent based on balances as of Dec. 31, 2017. “We’re excited to welcome the Wells Fargo employees and customers to Flagstar Bank,” said Alessandro DiNello, President and Chief Executive Officer of Flagstar Bancorp. “Wells Fargo’s primary goal throughout the negotiation of this transaction has been to make sure its customers and employees experience a seamless transition to Flagstar, and we will ensure that happens. We are confident customers will like Flagstar’s big bank lineup of quality products and services delivered with the high-touch personal service of a community bank. Flagstar has a long tradition of supporting its communities and fully expects to continue its commitment to good corporate citizenship and community reinvestment in our expanded market area.” Veros and IDS Partner on Solution for GSEs UCD Data Submissions

Veros Real Estate Solutions and International Document Services (IDS) have announced a partnership to provide lenders with a fully-integrated automated delivery solution for submitting the Uniform Closing Dataset (UCD) to

ACES Risk Management (ARMCO) has announced an integration with BankVOD, a company that pioneered the electronic risk interface for asset verifications. This integration, which provides a direct, seamless connection between ARMCO’s ACES Audit Technology and BankVOD’s Verification Hub, enables ARMCO clients the ability to order Asset Verifications, 4506-T, Employment and Occupancy and Liens &

two big factors in achieving quality,” said Phil McCall, President of ARMCO. “At ARMCO, we feel lenders should never have to choose between quality and time or resources. That’s why we are constantly pursuing ways, like this integration, to make quality faster, easier and more accessible to achieve for lenders of all sizes.” Civic Completes $190 Million Securitization

Civic Financial Services LLC has announced that it has completed

CIVIC 2018-1, a $190 million securitization, consisting of real estate investment loans originated 100 percent by CIVIC. The securitization is comprised of 548 loans that carry an average loan amount of $346,715.33, with terms between one and four years. The first for the company, the securitization consists of “fix and flip,” bridge and repositioned loans issued to real estate investors. All loans in the securitization are secured by residential and multifamily non-owner occupied properties and were originated incontinued on page 35

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ARMCO’s Integration With BankVOD Enables Seamless Transfer of Bank Data

Judgments on a batch or flow basis, and receive the data via a secure electronic transfer directly into their ACES instance. Prior to this integration, organizations were required to leave their QC software system, then order and receive IRS tax transcripts and bank verifications from BankVOD’s secure Webbased portal. In addition, they were not able to order IRS transcripts or verifications on a bulk basis. “This integration doesn’t merely make the verification process faster, it also makes it more consistent and secure, which are

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the Government Sponsored Enterprises (GSEs). The Veros and IDS partnership creates a fully integrated UCD data file creation solution and submission solution. By offering lenders a single, integrated solution–similar to the Uniform Collateral Data Portal (UCDP)–and combining IDS’s UCD XML file creation capability with Veros’ Pathway UCD submission system, both Veros and IDS ensure full compliance with the GSEs’ June 25, 2018 mandate. “IDS is widely recognized as a leader in the mortgage document preparation space, and we are pleased to partner with them to provide lenders with a single, integrated solution to ensure compliance with the GSEs’ upcoming UCD data submission requirement changes,” said Robert Walker, CMB, CMT and Vice President of Sales at Veros. Both GSEs are recommending that lenders prepare for the change by submitting “Successful” UCD files prior to delivering their loans, as appropriate. In response to the joint announcement from January, IDS has updated its proprietary idsDoc platform to support the directive and issued a press release on April 11, 2018 urging lenders to begin troubleshooting UCD files that resulted in a “Not Successful” status. “IDS has been gathering feedback from our clients in an effort to error-proof the UCD submission process before the upcoming changes,” said Matthew Mackey, Director of Sales and Marketing at IDS. “Veros’ expertise in working with automation and providing the technology powering the UCDP make them an excellent partner not only in this endeavor, but also in our overall goal to make idsDoc as seamless and efficient as possible for our clients.”

Independent Mortgage Originators By Andy W. Harris, CRMS

Chris HendricksonBeeline Mortgage This month, I’m interviewing Chris Hendrickson from Beeline Mortgage in Washington. Chris recently came back to the independent broker side of the business after spending several years since the financial crisis as a banker.

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Chris, tell me a little about yourself and your career. I am a Washington native and operate my brokerage out of my hometown, Liberty Lake, Wash. After high school, I attended Washington State University and graduated with a degree in Communications and Business. Approximately 22 years ago, I began my career in the real estate industry working for a local commercial real estate brokerage. After three years of selling hotels and apartments, I decided to change careers and move into the mortgage industry. I began as a Broker in 1999 and became an eventual Owner of Northwest Loan Center based out of Bellevue, Wash. After several years with Northwest Loan Center, I decided to go out on my own and open Move It Mortgage. With the mortgage meltdown of 2008, Move It Mortgage was closed in late 2008, and I began my journey into banking. I was a Loan Officer with Washington Trust Bank, Homestreet Bank, and finally, Stearns Lending. In late 2017, I decided to get back into the mortgage brokerage side of things and opened Beeline Mortgage in early 2018. I enjoy many outdoor activities, including golf, dirt biking, fishing, boating, skiing and spending time with my family. I understand you recently became a Mortgage Broker from the banker world. What motivated you to make the change? I had been a Mortgage Broker from 1999-2008 and always wanted to go back. I appreciate the more complete product mix we are able to offer as a Mortgage Broker through the many different lending channels we are able to access. It is a real advantage to be able to broker in that way. What would you say so far are the biggest differences you’ve experienced coming from the retail side? The biggest thing I have noticed is the prioritized service we are given as a Broker who has choices from the operations side of the wholesale lending channels we are associated with. How would you compare pricing when compared to the Mortgage Banker world? Our pricing is very competitive and our government pricing is far

ahead of the market. As a Broker, we are not able to bifurcate our compensation, so we really shine within the market, especially on government products. What are you seeing in your local market in terms of trends, inventory and consumer/Realtor mortgage education? We have very low inventory and a strong seller’s market. As a Broker, I’ve been able to parlay this into a competitive advantage for our clients in that we are associated with many lending sources, not just one. If we have a problem with the borrower or the property, we have backup lenders that may not see the situation as a problem at all. I know the myth of losing control as a Mortgage Broker is finally being exposed to the market and quite the opposite. What are your experiences on controlling the process? Mortgage Brokers have choices, and if wholesale channels don’t perform and perform well, we can go elsewhere. I get calls every week from my Account Executives asking if I need their help. In all my time in retail, I never once had someone call me each week to ask if I need help putting a file together. What would you say are your best forms of marketing today to generate new business? Our company is only three months old. We have done zero marketing other than alert our sphere, past clientele and the real estate community that we are a wholesale broker and that we are here to help them with their mortgage needs. Anything you would choose to share with Retail Loan Officers considering the change to becoming an Independent Broker? It is the best thing we’ve ever done, it takes a lot of work to set up but once you do, you’ll make more money and you’ll be able to deliver a cheaper product. Are you an Independent Mortgage Broker? Do you have something you’d like to share? Reach out to me at AHarris@VantageMortgageGroup.com for future article considerations.

heard on the street

LenderClose Secures Growth Investment

Pacific Union Taps Total Expert to Power New Marketing System

Pacific Union Financial has selected Total Expert to deploy its new proprietary marketing operating system (MOS), EXPmarketing. Total Expert will empower Pacific Union Financial’s Retail Loan Officers to manage and communicate with prospects and customers, while maintaining company brand standards and regulatory requirements. “At Pacific Union, we are committed to supporting our Rock Star employees. This promise includes providing our Retail loan officers with the best tools available, and EXPmarketing, powered by Total Expert, fits that bill,” said Jim McDonald, Chief Marketing Officer at Pacific Union Financial. “In our search for a marketing-technology solution, we weren’t satisfied with good; we wanted the best. We believe the new EXPmarketing solution will help empower our loan officers’ marketing and sales efforts, while ensuring we stay compliant with industry regulations.” Joe Welu, Founder and Chief Executive Officer at Total Expert, said, “We love the mantra at Pacific Union … be a Rock Star! At Total Expert, we work every day to innovate and meet the unique needs of the financial services continued on page 39

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LenderClose has announced that it has secured the funding it needs to add 25 employees to its ranks. LenderClose’s latest round of funding was led by Next Level Ventures, a venture capital firm that invests in growing companies based in Iowa. Since its launch in March 2016, LenderClose has added 100 lenders to its client list. February 2018 marked a record month of revenue for the startup, followed by another record month in March. That same month, the startup secured direct investment from two Iowa credit unions, and added Chief Operating Officer Ben Rempe to its team. “This team has done some

pretty impressive things with limited resources,” said Scott Hoekman, Co-Founder and Principal of Next Level Ventures. “This investment is gas in the tank that will allow LenderClose to do much more. LenderClose has a product that works, clients who have validated the solution and a growing team supporting the vision for rapid scale. You put more money alongside that momentum, and you’ve got something pretty exciting.” LenderClose executives anticipate the platform’s technology will continue to advance over the next 12 to 18 months. Plans include the addition of artificial intelligence capabilities to the platform, as well as a consumer-facing mobile app to give consumers even greater visibility into the lending process as it moves from application to approval.

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house by the private money lender. “We de-lever risk in a way that is unrivaled in the industry,” said Gary McCarthy, Partner of Wedgewood and Co-Founder of CIVIC. “Wedgewood’s expertise in valuations and value-add rehabs, in combination with HMC’s bestin-class default resolution, dramatically reduces risk factors. The success of the CIVIC 2018-1 securitization is reflective not only of the assets inside of it, but also a validation of our platform.” CIVIC was established in 2014 by its parent companies, Wedgewood Inc. and HMC Assets, to meet the needs of investors who did not fit within traditional real estate lending criteria. CIVIC currently employs 130 people and currently lends in 14 states. “This securitization will provide transparency and visibility into the performance of these types of loans, which is important not only for CIVIC, but for the entire private lending industry as a whole,” said William J. Tessar, President of CIVIC. “It creates opportunities for lenders such as ourselves to access a lower cost of capital, which will be necessary in a rising rate environment along with the normal margin compression that takes place in a highly competitive space. The quality of our loans is a reflection of experienced borrowers who have their own skin in the deal, maintain good credit and have strategic exit plans for the short-term financing. We believe the strength of CIVIC’s loan performance supports just that.”

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MBA’s 2018 Secondary Market Conference Survey Scorecard: A Report of Findings

By By Tom Tom LaMalfa LaMalfa

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his is the 20th time since 2008 that this survey of senior mortgage banking executives has been conducted and distributed. It is completed twice annually, at the MBA’s Annual Convention in October and at the MBA’s National Secondary Market Conference each May. The survey’s attention is focused on eight topics: Production, Costs & Profits, MSRs, Fannie & Freddie, Technology, Regulations and Risk. My Conference experience this year consisted of attending the Capital and Secondary Market Committee Meeting; dining with the Co-Director of the Center on Housing Markets and Finance; lunching with a Fannie Mae executive one day and an MBA executive the next; breakfasts with the Head of Capital Markets at a smaller West Coast based IMB and the Correspondent Production Head at a large IMB; and completing 23 in-person surveys over three days. As an aside: The Capital Markets Committee heard from

Freddie Mac, Fannie Mae, Ginnie Mae and Phoenix Capital. Freddie’s spokesperson discussed the Single Security, the benefits of aligning the securities, and competition between the two GSEs. The new UMBS launches June 2019 with trading beginning in 1Q19. A “Playbook” that addresses questions is available from the Fannie and Freddie websites. Fannie’s spokesperson addressed MSR financing, LIBOR and CRTs. Ginnie’s representatives talked about issuers, prepay monitoring, VA churning and referenced a soon-to-be-released White Paper. Phoenix said MSR values are up sharply in 2018 with good liquidity, many investors, and prices at their best levels since 2014. I raised questions to the Committee about the line separating the primary and secondary markets, the impact of the servicing exchanges on Phoenix and its competitors, and the large and growing credit risk found in FHA loans. For those reading this for the first time and who don’t know me, I’ve been a researcher, observer

and student of the mortgage banking industry since 1977 when I worked for MGIC as an Analyst and co-authored a weekly newsletter on the secondary market for a decade. This year’s Conference was my 38th in 40 years in the industry. The purpose of this survey is to gather the opinions, ideas, values and expectations of senior mortgage banking executives on many of the business and industry’s key issues, topics and concerns, along with some soft directional data and trending markers. A second purpose of this serial is to bring senior executives further into a more public discussion of key industry issues and topics without drama and despite the sometimes controversial nature of some of the underlying issues. The mortgage finance industry is huge, important, diverse and yet connected (and beholden) to the federal government in many ways. For this year’s convention, 28 meetings were arranged and an equal number of surveys were completed. The surveyed group consisted of four CEOs, two

Presidents, five Executive Vice Presidents, 10 Senior Vice Presidents and seven Vice Presidents. Excluding the CEOs and Presidents, all of those surveyed this year work in either capital markets, production, finance or operations. Of the firms represented in the survey, eight produced more than $10 billion in 2017, another 11 originated between $1 billion and $9 billion and nine produced less than $1 billion. The smallest firm produced $100 million, and the largest did in excess of $200 billion. The surveyed group’s mean was $13 billion of volume and the median was $2.3 billion. The executives surveyed represent 14 banks and 14 nonbanks. Included were two homebuilder-owned firms, one Realtor-owned firm, two private equity-fund-owned companies, two owned by hedge funds, four privately-owned firms and 14 financial institutions, including one credit union. Thirteen of the firms originate exclusively through a retail channel, 10 produce loans in two channels, and five of the 28

originate in retail, correspondent and broker wholesale. About half operate call centers. The surveyed group was carefully structured to be representative of the lending industry in terms of the size and type of firms, their reach and scope, physical location, product menus and operating channels. All efforts are made to mimic the membership profile of the MBA in the survey group. The 68-question survey used in New York was drafted in the weeks before the Conference, phone tested and run by several industry folks for completeness and clarity. Input into the questions was sought and received from past and present members of RESBOG, MBA Officers, and from several past Chairs of the Capital and Secondary Market Committee. Except for the telephoned group that was surveyed in the days before the Convention, all the surveys were completed face to face during meetings at the Conference, held May 20-22, 2018. On average, 40 minutes was required to complete each survey.

As for the survey process, it starts with reading the questions to the executive, recording the responses, and then later compiling the information in a spreadsheet, examining the data, preparing a cursory report of surface findings, and distributing the write-up to those surveyed and other interested parties. The reports are published in MBA Insights, National Mortgage Professional Magazine and other interested mortgage-finance magazines, and posted to several blogs. As for the survey group, it consists almost exclusively of past and present clients and longstanding industry associates. All are very knowledgeable industry veterans. Many of those surveyed have participated in this bi-annual survey since its inception. Most are close industry contacts that have helped me stay abreast of intraindustry issues, trends and developments over the course of decades. Four of the 28 executives were surveyed for the first time and three new firms were included in the survey group this time around.

Many changes to the survey group have been made in the past decade to adjust for the major secular shift in market share from banks to Independent Mortgage Banks (IMBs). Although some of the questions in the survey are time specific and appear in these surveys only once or twice, others are included in every survey. More data-driven questions like Questions 2-12 and 20-24 are always included in the survey. Some questions may be asked once and then jettisoned, while others, such as evaluations of Fannie and Freddie (Questions 39-40), are asked year after year. Frequency depends on the importance and sustainability of the topic or issue. Collected surveys provide a dataset of queries and responses over time. Analysis of the resulting longitudinal data may show patterns and trends, and signal new developments in the business and industry. For example, will the business discover a strong resurgence of mortgage brokers and wholesaling? Or, is concern over the risk characteristics of

mortgage loans, especially FHAs, a growing worry? This latest survey shows slowing production, plenty of competition, thin margins, overall satisfaction with the GSEs alongside strong recognition of their importance, plans to beef up investment spending, higher MSR multiples and a building up of risk. It need be said that given who is being polled, it is understood that the findings reflect only the responses within the mortgage banking industry, not a broader cross-section of the U.S. population. Not a random survey, there is nothing in these results that would necessarily be germane outside the mortgage finance industry. It also begs mention that survey results are only valid as of a specific point in time. Things can change, sometimes quickly. That said, I believe as a longstanding industry observer, the findings well represent the facts, expectations and thinking of the mortgage industry as a whole. Indeed, most readers of this report will likely find continued on page 42

Addressing Post-Housing Crisis Issues

How the CFPB “Submit a Complaint” Portal Helped With a Problem in Credit Reporting ... and More BY PAM MARRON

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n March 1, 2018, the Consumer Financial Protection Bureau (CFPB) issued a Request for Information (RFI) about public reporting of consumer complaints seeking comments and information from interested parties on the usefulness of complaint reporting and analysis, as well as specific suggestions on best practices for complaint reporting. This RFI can be found at https://goo.gl/am2fUC. CFPB’s “Submit a Complaint” was very useful for reporting the problem of short sale credit that continues to show up as a foreclosure to this day. The credit code issue is critical to the mortgage and housing industry because a foreclosure requires a sevenyear wait before a new conventional mortgage can be obtained, rather than the fouryear wait required after a short sale. Because the foreclosure code commonly applies where mortgage delinquency exceeds 120 days, this issue can also result in a new conventional loan denial for consumers who have had a modification or excessive mortgage lates even when the

home was sold without a short sale or foreclosure. An explanation of this problem and the benefit that the CFPB “Submit a Complaint” portal provided proved that a correction/change of credit code was possible on the lender’s end. The RFI was brought to my attention. Below is a letter written to Acting Director Mick Mulvaney about the useful benefit that the CFPB “Submit a Complaint” portal provides. RE: Docket No. CFPB-20180006: Request for information regarding Bureau public reporting practices of consumer complaint information. Dear Acting Director Mulvaney: In 2010, it was discovered that the credit code for consumers who had a past short sale appeared as a foreclosure. For most lenders, the statement “settled for less than full balance” is the only visible indication of a short sale on a credit report and commonly, if a prospective borrower has exceeded the four-year wait timeframe required after a short sale, lenders proceed with a new mortgage application. Visual written presence of a foreclosure code for affected past short sellers does not appear until the loan is run through the Fannie Mae or Freddie Mac automated underwriting systems (AUS) and

a loan denial results with foreclosure noted in the AUS findings. Fannie Mae’s AUS even defines the account name and number. The only other way to see the foreclosure code is in raw credit data that can be obtained through a credit reporting agency, but not all agencies provide this. The issue was brought to the attention of the CFPB with a major push from U.S. Senator Bill Nelson and the National Consumer Reporting Association (NCRAinc.org) in 2013. After much discussion about whether the issue was a credit code problem within the credit bureaus or an issue with the Fannie Mae and Freddie Mac AUS’s, a resolution was a workaround planned within the Fannie Mae Desktop Origination/Underwriter AUS that would be available on November 16, 2013. As a Mortgage Loan Originator for 33 years living in Florida, a state that was severely affected with thousands of short sales and foreclosures, I was anxious for the Fannie Mae workaround to provide a correction for the erroneous foreclosure credit code issue. Broadcasting of the November 16, 2013 Fannie Mae workaround was done within the mortgage

industry and in the press. Many mortgage colleagues and I had cases ready to input on November 16th. But the workaround was only successful for a handful of clients submitted and angry Loan Originators across the U.S. let me know that the workaround did not work for their clients. Out of frustration, I assisted clients to submit their denied loan detail to the CFPB “Submit a Complaint” portal. I was stunned when the response of lenders who had previously stated “there was nothing they could do, this problem is a credit bureau issue …” changed to a deletion of foreclosure credit code, and within 15 days! For cases submitted to the CFPB “Submit a Complaint” portal, a written response of correction from the lender became available to the consumer and a new credit report was able to be obtained within days of receipt of the letter. When the submission with the new credit report to the Fannie Mae AUS was done, in almost every case an Accept/Eligible approval was received. On August 16, 2014, the Fannie Mae workaround was successfully corrected. There is still no workaround in continued on page 70

heard on the street

industry, and we are pleased that Pacific Union recognizes our great work and chose to partner with us.”

executives in accounting, financial planning, wealth and asset management and investment firms. l TRK Connection has announced that it has hired Jeremy Burcham as Executive Vice President of Sales. l Angel Oak Mortgage Solutions continues its strong start to 2018 with the addition of seven new Account Executives, including Mary

Moehring in Sacramento, Calif.; Reginald Ross in Dallas; Peter Ronga in New Jersey; Mike Dattorre in Connecticut; Rudy Pineda in inside sales; and both Laurie Cullen and Mel King in Missouri. l New American Funding has announced that it has named Caleb Mittelstet as its Central Division Manager. In his new role, Mittelstet will expand the company’s footprint in specific geographic regions across the country. l Carrington Holding Company has announced that it is

expanding the leadership team of the Carrington Retail Group (CRG), with the hiring of industry veteran John Nicholas as its Chief Technology Officer. The company also announced two promotions within the consumer retail group, as Ryan Dranginis, formerly Vice President of Business Technology, was named Head of Marketing, and Christopher Gordon, formerly Vice President of Business Operations and Strategy, was continued on page 72

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Mortgage Professionals to Watch l HomeBridge Financial Services has announced the addition of six experienced Mortgage Loan Originators in its growing branch locations throughout the Northeast, including Uran Blakaj in Hoboken, N.J.; Jenifer Brennan-Crowley in Wayne, N.J.; Melissa Burgess in Mattapoisett, Mass.; Matthew Leddick in Saratoga Springs, N.Y.; Richard Rondi in Wayne, N.J.; and Thomas Swensen in Iselin, N.J. l President Trump has nominated Michael R. Bright to become the next President of the Government National Mortgage Association, also known as Ginnie Mae. l TMS has announced the addition of industry veterans Fred Quick and Al Murad in key leadership roles of its Nationwide Retail Lending Division. Quick and Murad both take on the title of Executive Vice President of Retail at TMS and will report to Pete Sokolovic, who leads the Retail Division. TMS has also announced the hiring of DJ Ziggas and Corinne Shanahan in leadership roles to continue the expansion of its Correspondent Lending Division. Ziggas joins TMS as Senior Vice President of Correspondent Lending, leading the company’s East Division. Shanahan joins Ziggas as Senior Vice President of Correspondent Sales at TMS. l Kara Miner has joined LenderClose as an Operations Specialist, bringing more than 15 years of experience in mortgage, real estate tax sale and customer service to the company. LenderClose has also announced the hiring of Brad Bach as Vice President of Sales, focusing on introducing more credit unions and community banks to the digital lending platform. l Joe Welu, Founder and CEO of Total Expert, has been accepted into the Forbes Finance Council, an invitation-only community for

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mba’s survey scorecard

many, many more confirmations to their own thinking about the subjects herein than any real major surprises in the survey findings. That said there are several surprises in the findings for readers of this report to uncover. From my perch, the mood of this year’s Conference was upbeat, but cautious. With refi activity slowing sharply, volume won’t match 2017’s $1.9 trillion. Given this reality, along with keen competition, concern about future profitability, lackluster volume, thin margins, the GSEs, risk, and the bright line between the primary and secondary markets were my key takeaways from the conference. The latter in the context of Freddie’s IMAGIN initiative and its newly unveiled MSR financing program pilot. Thus prefaced, it’s on to the questions. Note that what follows is not an analysis; rather, it’s a straight forward iteration of the collected responses. No attempt is made to provide any color or explain nuance on the issues or topics included in the questionnaire. None of the complexity of so many of these issues, or of the various nuances in

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topics or responses, is dealt with in this report. What follows are only the most obvious, on-the-surface findings. Question 1 asked whether respondents expected mortgage rates to rise by more than 50 basis points by year end. No, said 18, nearly twice as many as saying they would. Question 2 inquired if production was up, down or flat to date in 2018 compared to 2017. Eleven of the 28 executives surveyed reported production dollar volumes were up, 10 said down and seven reported flat volume into May. Questions 3 to 5 dealt with origination volume, specifically what portions represented each of three categories of production. Purchase business accounted for an average (unweighted by volume in this or any of the subsequent questions) of 78 percent of the entire group’s origination activity. The range of responses was quite wide: from 6098 percent. The median was 80. Agency, defined as Fannie Mae and Freddie Mac, conventional volume accounted for 64 percent of production, with a range of two

percent to 100 percent, but a median of 65; government-insured volume, which ranged from zero to 70 percent, averaged 24 percent for the group as a whole. FHA volume for the year was reported up at 13 firms, down at seven and unchanged at six others. Question 7 inquired about the percentage of their firm’s conventional business that was over 80 percent LTV. The average was 42 percent amid a five percent to 100 percent range and a median of 34. Question 8 asked about whether or not they were seeing growth in riskier loans this year–high LTVs and DTIs. The responses were distinct, with 18 reporting yes, versus five saying no and five essentially unchanged. Industrywide, have credit scores been drifting lower in recent years, Question 9 asked? More than three times as many firms said yes than not. Does your firm offer a 90 percent (actually all are to 89.9 percent) LTV without MI product, Question 10 asked. Yes we do said 17 executives versus 11 whose firms don’t offer this product. Questions 11 and 12 dealt with origination—refi activity in the first and change in volume from last year in the second. Refi activity in 2018 is expected to account for 24 percent of total originations, down from 48 percent last year. The median estimate was 25 percent, within a response range of 10 percent to 35 percent. Will origination volume this year drop by 15 percent or more from 2017? Nearly twice as many executives said yes than no. Questions13 through 18 inquired about costs and profits. Are operating expenses up this year from last, asked Question 13. They are, reported slightly more than twice as many affirmatives as negatives, and with six others saying unchanged. Questions 14 and 15 wondered about costs, whether evidence existed to report production costs were beginning to decline. Not yet, indicated 20, compared to eight other executives who were finding some early (small) evidence of lower production costs. Question 15 asked if efforts such as bundling services and outsourcing were being employed to help control costs. Not really said nearly twice as many as those saying such methods were being used to try and harness origination costs. How serious is the margin compression today asked Question 16. Both the average and median were nine on a scale of one through 10. More than half of the executives ranked it a 10. Question 17 wanted to know who thought profits in the industry would be better this year

than they were in 2017. There are no illusions, none: The first unanimous response–28:0. And related, are your firm’s profits better in 2018 than last year, more than four times as many said no, compared to four who said profits were higher (yes, there was an explanation for each of the four), and four others who reported little change. Question 19 wondered in which channel the executives were finding the best return on capital. The posted results are misleading, as a majority of firms are retail only. Netting out the 13 retailers leaves this result: Seven saying retail provided the best return on capital versus six saying correspondent was best. Questions 20 through 24 asked about servicing and MSRs. Who was retaining servicing and who was selling or buying it (usually in bulk). Of the 28 firms, 11 were retaining servicing, five were selling it, seven were retaining and buying, and five were retaining some and selling some. Were sellers of servicing selling it on a bifurcated basis, wondered Question 21? No, said 17 of 21, with a number of respondents unsure whether their firm’s sales were bifurcated. Question 22 asked if sold servicing went through a servicing exchange operated by Fannie Mae or Freddie Mac. Only 12 percent went through such an exchange, and the median was zero. One firm sold everything it sells through an agency servicing exchange. Is implementing a grading system for Ginnie Mae servicers and issuers a good idea, asked Question 23? It is, said 25 of 26 weighing in on the query. And are MSR prices at their best, highest level in years? Oh yes they are, report 25 versus two who disagreed. Questions 25 and 26 inquired about staffing and recruitment. Of the 26 executives responding, more than twice as many firms were reducing staff as adding (net, net). Three others aren’t anticipating changes in staff size. As for recruitment, about three times as many executives indicated that aggressive recruiting, especially of top LOs, remained strong this year (despite the slowdown). Questions 27 through 36 all dealt with the GSEs. First up was the executives’ assessment of Loan Advisor Suite and One Day Certainty. Scaled one through 10, both Freddie and Fannie received identical assessments of 7.8 (how likely is that). Question 29 wondered what portion of each firm’s business was going through one or the other of these two

Question 42 wanted to know if the executives thought new HMDA requirements had made compliance more difficult and time consuming. Indeed it has, said 25 of 28 respondents. Excepting Questions 44 and 45, Questions 43 through 48 dealt with technology and innovation. Question 44 asked what each firm produced volume-wise in 2017 (this was used to ensure that both groups, banks and IMBs, included a broad range of different size firms). The average volume was $13 billion, the median was $2.3 billion with a range of $100 million to over $200 billion. Question 45 asked if

the executives expect solid growth in the under five percent downpayment market this year. Almost twice as many expect good growth in this market sector in 2018 as don’t. Question 43 asked if automation has reduced the cost of originations by 10 percent or more. Mixed bag of responses, with 15 saying no and 12 saying it has. How important is going digital and what percentage of your closings are eclosings (yes, including the Note and Mortgage), Questions 45 through 47 questioned. Going digital scored a 7.8 of 10 for importance while e-closing

gathered only one percent of all closings. Question 48 wondered if their firms were making significant investments in technology this year. And they are, with six times more responding in the affirmative than not. Questions 49 and 50 dealt with the FHA. The first was if FHA should go back to the former policy of dropping the insurance when the LTV drops to 78 percent. No surprise here, as almost six times as many executives favored dropping the insurance after the UPB hits 78 percent. Question 50 continued on page 46

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initiatives. The average was 24 percent and within a range of zero through 65 percent, the median was 25. Were these two programs providing advantages at point-ofscale, asked Question 30? The response was a perfect standoff: 12 yeses and 12 noes, with four others unsure. No clear evidence of lower costs emanating from these initiatives, reported 18 executives compared to eight who were finding cost reductions, albeit still small. Who leads on technology and innovation and which GSE is better at relationship management, Questions 32 through 33 inquired? Fannie trounced Freddie on the question of technology and innovation, 19:3, with six seeing no difference. As for relationship management, Freddie received twice as many votes for being better than Fannie at building and maintaining local GSE-customer relationships. Here 10 of the 28 executives saw little difference between the two GSEs. Question 34 asked the executives how important Fannie and Freddie were to their respective businesses. On a scale of one through 10, the two GSEs captured a nine with the majority of respondents giving them a perfect 10. What’s more important with a GSE, fungibility or a better experience/value, asked Question 35. Exactly twice as many executives said fungibility exceeded value in a relationship with Fannie and/or Freddie. Question 36 asked which agency had better solutions for low- to moderate-income borrowers. Hands down, FHA took the prize compared to two each that cited Fannie or Freddie, two that cited both GSEs collectively as equal, and four others who felt all three–Fannie, Freddie and FHA– offered equal mortgage solutions for lower-income borrowers. Concerning servicing process efficiency, Question 37 asked, where is your firm’s focus, on performing or nonperforming loans? All the executives save one were focused on performing, with two others focusing equally on both. Question 38 wondered if reducing cycle times or costs was the priority at their firm. Cycle time reduction and costs drew a nearly equal tally– 13:15. Questions 39 and 40 asked what letter grade, A to F, they would give Fannie and Freddie for their overall performance to date this year. Fannie received three As, 17 Bs, and five Cs; while Freddie collected two As, 17 Bs and seven Cs. Should credit score requirements at the GSEs be loosened, asked Question 41? No, no, no said 25 of 28 executives.

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Industry Mourns the Loss of

Michael McHugh, Former Continental Home Loans Chief By Phil Hall

“I know that Mike has touched all of our lives and that this is heartbreaking for us all. I have known Mike for more than 30 years, both professionally, as Yankee fans together, and as a personal class-act friend. I met Mike when I was an appraiser more than 30 years ago when he was a Loan Officer in

“I worked with Mike McHugh when he was a Loan Officer at Public Equities/First Northern and then followed him in 1987 to Continental Capital Corporation, where he became part-owner. I have been with Mike ever since at Continental Home Loans, and most recently, Freedom Mortgage. Mike was a true gentleman and so generous

to all around him. We weathered many cycles of the mortgage industry together. Even in down markets, Mike remained successful as he was determined to always put our borrowers first and do the right thing by them. In Mike’s case, that philosophy paid off, and he was able to employ hundreds and hundreds of employees over the years, many of whom came to pay their respects.” —Kathy Lovece, Vice President of Traditional Retail, Freedom Mortgage “I was one of the earlier Mortgage Brokers in 1985. It was a fairly new development and I started my own small business to help people with their mortgage needs. I knew very little, as it turns out. One day while working with a local wholesaler, I stumbled upon Mike McHugh, probably their top Loan Officer at the time. He certainly had a ton of knowledge. I asked him a question which led to many more and he took the time to teach me, a competitor how to do this ‘mortgage thing’ correctly. Mike and I became friends instantly and would count on each other numerous times through the years. We rooted for each other, even as competitors. The bottom line is that Mike touched everyone in the mortgage industry and his reputation reached nationwide status. He was smart, fun, funny and always had a smile and was always willing to help. Simply a great man!” —Donald Henig, President, Propzy Inc.

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

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“I held Mike McHugh in the highest regard. He was a terrific Mortgage Banker, business leader and friend. He was a beloved leader and cared endlessly for those around him. Having known him for many years, I can say that he is a man who earned respect by what he did, not just what he said. He built a big business that survives today as a monument to his efforts, even though it has taken a different form, it still reflects his determination and energy. This is a friend I admired and will miss.” —Stan Middleman, Chief Executive Officer, Freedom Mortgage

Queens. When he started his own company, Continental Capital, he took me with him and used my company, always staying as a loyal customer and always giving me support. Our friendship grew over the years and next he offered me a partnership at Continental Home Loans. We worked very closely together with Sam Barretta to build what we thought was the best company ever. He was the true rock star that everyone knew and respected. It was Mike people knew at all events and conferences across the country. There was not a person who didn’t know Mike McHugh and respect him as we all did. Mike not only was our fearless leader, but a man who had many people devoted to him that are still here today working with him for over 30 years. My last words to him were, ‘Thank you for everything, many people including myself would not be where we are today if it was not for you.’ I share this with all of you because I know that so many of you feel the same way.” —Eric Reeps, Senior Vice President, North Region, Freedom Mortgage

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ichael McHugh, former President and Chief Executive Officer of Continental Home Loans, passed away on May 16 at the age of 60 following a bout with cancer. McHugh became Continental’s President in 1986, two years after the company was created. In 1999, Continental was acquired by to Puerto Rico-based RG Premier Bank, and its operations were folded into Orlando, Fla.-based Crown Bank, which was also purchased by RG Premier. In 2005, McHugh brought Continental back from RG Premier, and it is now headquartered in Melville, N.Y., with McHugh as President and CEO. In November 2014, Freedom Mortgage Corporation acquired Continental. The company became CHL Mortgage, a division of Freedom Mortgage, with McHugh serving as Senior Vice President of Retail Lending within Freedom Mortgage. McHugh was also active in mortgage industry trade

associations, serving terms as Chairman of the Community Mortgage Lenders of American and the Empire State Mortgage Bankers Association. In a September 2014 interview with National Mortgage Professional Magazine, McHugh acknowledged that mortgage banking was not his first career: during his high school and college years, he supported himself as a clammer in the waters off his native Long Island. When asked about the meaning of the old phrase “happy as a clam,” McHugh happily remarked: “I think they are happy because they are not disturbed … just lying there all alone. Definitely not like being a Mortgage Banker!” McHugh’s colleagues recalled him with warmth and affection …

mba’s survey scorecard

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asked if it was a good idea to fund FHA’s IT needs with a per loan fee. Yes said 15 executives, versus 13 who said no more consumer fees. Question 51 wondered if the executives were seeing and hearing about new wholesalers or whether existing wholesalers were closing operations. Results were mixed, with 11 reporting new openings and 15 recent closings. What percentage of aggregate originations will go to minorities in the next five years, Question 52 asked. The average percentage cited was 31 percent, with a range of 15 percent to 60 percent and a median of 25 percent. Fact: Minorities will account for 50 percent of new household formations in the next decade. Question 53 inquired if data requirements from the FHFA and the GSEs are excessive. Yes said a majority 16 of 28 responders. Should this collected data be shared with lenders? It should said 22 of 26. Question 55 asked if the new tax code will prove a positive or negative, or be neutral for mortgage firms. Neutral said 15 executives, compared to eight who view it a positive and three who viewed the tax code a negative for mortgage finance. Excited about the coming (June 2019) of the Single Security and the CSP, Question 56 inquired. On a scale of one through 10, the question scored a 6.4 average and a seven median. Question 57 asked if AMCs produced better or worse appraisals than non-AMCs. Worse said 19 of 23, with three others reporting little difference. Questions 58 and 59 dealt with regulations, the first asking if the QM and QRM rules should stay or go. Of the 28 executives, 15 think these rules should end, but the other 13 said keep them (they are guardrails and the expenditure a sunk cost). How important is the non-QM market to your firm, Question 59 asked? The question scored a four of 10, with a median of three amid a range of one through 10. What’s your best guess as to the percent of revenue that was being allocated to cybersecurity, Question 60 wondered. The

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average estimate was six percent, the median five percent and the range 0.5 percent to 15 percent. Question 61 wondered if the executives saw a boom in home equity lending around the country. No said 2.5 times more executives than otherwise. Question 62 wanted to know if the executives expect fintech firms to skim off 10 percent of traditional mortgage business in the next several years. Mixed responses: 15 yeses and 13 noes. What’s hurting production more, asked Question 63, higher interest rates, low inventories or affordability issues? Inventories all the way—25 as compared to two executives saying rates and one other blaming affordability. Question 64 asked if Capital One’s exit from the business was the first of many this year. Only one of 28 executives thinks there won’t be a wave of exits from the business this year. Question 65 queried whether the executives thought it necessary that 80 percent of all mortgage be insured or guaranteed by the federal government. It should not said 18, twice the number saying yes. Question 66 was my political question. It asked if they expect a “Blue Wave” in November’s congressional elections. Yes, say 15 executives, while 13 others expect no Democratic takeover of the House. The questionnaire concludes with questions about LO compensation and LOs. Question 67 asked if the current level of LO compensation was sustainable longer term. Not really said 22 of 26 executives. Question 68 asked if their firm would be replacing their LOS in the next year or two. No replacement LOSs coming before mid-2020 said 19 of 23 executives, while seven others expect new LOSs this year or next. So there you have it, what I learned at this year’s Secondary Conference. My thanks to the panel of 28 senior mortgage executives for meeting with me, and to Fannie Mae for underwriting this survey. I hope the survey results prove interesting and helpful to all.

Tom LaMalfa is a 35-plus-year veteran Mortgage-Market Analyst and Researcher. He has done pioneering work in the areas of secondary markets, wholesale mortgage banking, mortgage brokerages, financial benchmarking and GSE reform. He may be reached by e-mail at Tom.LaMalfa@gmail.com.

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Alexa, Recommend a Great Home Loan and a Swordfish Recipe By Rick Arvielo

eing a tech enthusiast, I recently went fishing for a swordfish recipe with the help of my virtual assistant. “Alexa, swordfish recipes,” I said firmly and clearly to ensure there would be no misunderstanding of my words. Seconds later, standing over my cooktop, I was trying to decide between lime-and-cilantro and mixed peppercorn swordfish recipes. I ended up choosing the latter. What my interaction with Alexa showed me was not only how much time a smart device could save me, but how much it could literally spice up my cooking experience. My easy, convenient interaction with technology had enhanced, edified and complemented my culinary expertise in the kitchen, without dominating it. And therein lies a tale … Although I didn’t create the swordfish recipe, I was still the one responsible for bringing it to fruition—prepping, cooking and delivering it to the table. I was the one controlling the experience, from start to finish, to create the best possible dish for my guests. And after passing out the dinner plates, like any good chef proudly walking the floor of his restaurant, I asked, “How is everything tasting?” When I am swapping my chef’s hat for a suit and tie as New American Funding’s CEO in Tustin, Calif., I still aim to please. But instead of asking, “How is everything tasting,” I ask, “How is your GoGo LO app working for you?” There’s a lot riding on that question–and the subsequent answers—because New American Funding has invested millions of dollars in this mobile technology platform, betting that it can deepen and enrich the experience for everyone touched by the loan process–from the company’s own Loan Officers and their real estate partners to the

thousands of customers who rely on them for real estate financing or refinancing. Build it internally When we began building GoGo LO, we set out to build a robust system that unchained and untethered Loan Officers from their desks and offices, so they could literally be out in the field, conducting business on the go from wherever they happened to be, Monday through Sunday, from the beach to the bleachers watching their kids’ soccer game. One decision we didn’t have to make is how to acquire and implement the technology. New American’s small team would build it themselves, as they had with the company’s first desktop system. Indeed, before founding New American Funding with my wife Patty in 2003, I built the technology supporting a successful check-printing business in the 1990s. So, buying something off the shelf was never an option. Don’t compromise quality My earlier success with technology also taught me not to rush something to market just for bragging purposes. If I could buy something off the shelf and get it implemented in 30 days or spend nine months building it, I would rather spend nine months building it. That way, everything can be integrated into one intuitive, easy-to-navigate system. Creating our own app solution also gives us ultimate control. If we want to turn right, we turn right, and if we want to turn left, we turn left. From a financial standpoint, building GoGo LO has also been a winner. We are not paying fees to license various mobile technologies, which can add up quickly over a sales force of hundreds. The next thing you know, you would be cramming

those fees down on your LOs, and that’s a pretty big monthly expense. At New American Funding, we don’t charge our LOs a thing … not a dime. Interestingly, building quality into the GoGo LO didn’t mean we had to wait until the app was perfect before releasing it. When we were convinced that it had enough functionality to be useful to Loan Officers in the field, and it could be built onto the architecture, we got it out there, and then listened to the street. We added new features and enhancements, based on that feedback, and today GoGo LO has functions on it that’ll just knock your socks off! Time well spent Although GoGo LO has helped make it possible for New American Funding Loan Officers to close loans in record times, it is the experiences the Loan Officers are providing during that time that has truly distinguished the app. GoGo LO’s new Property Profile is just one new feature we’re especially proud of. For example, for clients parked outside a house wondering if the home is worth a look, they can send their LO the property address and can receive a full profile of that property within seconds, which includes ownership, sales, mortgage and tax history, along with comparable homes sales and listings in the area. From that point, home shoppers can call their Real Estate Agent to schedule a showing or move on to another property more appropriate for their needs and goals. Because our LOs are providing their clients a valuable real-time service, they’re winning more business. More recently, we introduced GoGo Agent Intelligence (AI), which provides Loan continued on page 50

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alexa, recommend a great home loan and a swordfish recipe

Officers real-time market intelligence that previously could have taken hours, days or even weeks to obtain. After downloading the feature to their smartphone, LOs can instantly see the top-producing real estate offices in their market, the leading agents by units and volume in those offices, each of their respective deals, the size of each transaction and which lender provided the financing as well as the type of financing selected, such as conventional, FHA, or VA. They can also use AI to sort buying agents and sell-side agents. Again, the information is designed to provide New American Funding LOs with a better experience. They can take their research and use it to target only those Real Estate Agents in their market they most want to work with. And when LOs and Real Estate Agents are working as a team, that provides a better experience for their mutual homebuying client.

Although our GoGo LO technology is proprietary, we share it freely, in every sense of the word, with our real estate partners. Weâ&#x20AC;&#x2122;ve delivered a lot of great innovations to improve the homebuying process, and our real estate partners have enjoyed being part of this experience. For instance, GoGo LOâ&#x20AC;&#x2122;s Property Profile Report pulls and accumulates data from a variety of data sources that New American Funding purchases and then compiles the information that either the LO or their Real Estate Agent partner can send out. All the information is assembled into a beautifullytabbed presentation that they can e-mail or text to their client. Sharing the wealth The same system can also grab the information and post it to the Real Estate Agentâ&#x20AC;&#x2122;s Facebook, Twitter and LinkedIn social media sites. Again, none of these services cost the agent a penny.

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

â&#x20AC;&#x153;If I could buy something off the shelf and get it implemented in 30 days or spend nine months building it, I would rather spend nine months building. That way, everything can be integrated into one intuitive, easy-to-navigate system.â&#x20AC;? As passionate as I am about technology, I understand that many people are resistant to any kind of change, especially if they are already successful. So instead of using an iron hand to introduce a better way of doing things, I simply market to them by keeping the conversation going through video and social media channels. If over coffee you hear how one of your fellow Loan Officers kept the loan on track by taking a snapshot of a clientâ&#x20AC;&#x2122;s paystub and uploading it to the underwriter â&#x20AC;Ś that gets your attention. At some point, they realize itâ&#x20AC;&#x2122;s not how they want to do business, but how their customers want to do business, that matters most.

As much as New American Funding has created technology to turn around loans in record time (e-signing, pulling credit, sending pre-quals, etc.), at this point we talk more about experiences than days to closing. And when those experiences resonate with customers, we hope they share their approvals online, something theyâ&#x20AC;&#x2122;ve done more than 35,000 times, dwarfing the positive feedback of banks five times our size. We at New American Funding have come to appreciate that the best way to gain an edge with our guests and customersâ&#x20AC;&#x201C;whether delivering a five-star swordfish dinner or a five-star loan experienceâ&#x20AC;&#x201D;is to put plenty of options on the table.

Rick Arvielo is Chief Executive Officer at New American Funding. Rickâ&#x20AC;&#x2122;s proven formula of marrying marketing and proprietary technology to grow businesses from the ground up has led to the growing success of New American Funding. Rick leads approximately 160 branches and approximately 2,800 employees with the goal of providing unparalleled service and mortgages at competitive rates, helping individuals fulfill the American dream of owning a home.

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It’s About Time: New Innovations Drive Speed and Accuracy By Brent Rasmussen

seamless customer experience: It’s the Holy Grail in just about every business sector, and technology is often expected to provide the roadmap. The mortgage industry has no shortage of challenges when it comes to delivering a fast and seamless experience, including heavy regulatory burdens and complex operational issues. The good news? Technology is indeed providing answers. Consumers have high expectations for service and responsiveness, and young consumers in particular expect to interact with any company across multiple platforms. Millennials, the largest generation in our nation’s history, will soon constitute the majority of our workforce. Having grown up in a digital world, they are technologically sophisticated and utterly mobile. The mortgage needs of a 30-year-old Millennial may not vary much from their generational counterparts at the same age, but their expectations for speed and efficiency will. Time is a crucial factor. Millennials are notoriously indifferent to in-person activities such as branch banking, and they are famously glued to their devices. An Accenture survey found 94 percent of Millennials bank online and 39 percent would be amenable to a digital-only bank. However, a 2017 survey sponsored by Ellie Mae found that 30 percent of Millennials started their mortgage application process online, but ended up completing it in a bricks-andmortar setting. It seems clear the mortgage industry must be more responsive to customers in all environments. And faster.

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Robots follow the rules Exciting new technologies have emerged that are streamlining the loan processing experience, and enabling mortgage professionals to place their focus where it should be—on the customer. Among the most promising of these innovations is Robotic

“The mortgage needs of a 30-year-old Millennial may not vary much from their generational counterparts at the same age, but their expectations for speed and efficiency will. Time is a crucial factor.”

Process Automation (RPA). In a nutshell, RPA uses software tools, called “bots,” to perform activities that would otherwise be done by people. RPA works across multiple systems, achieving improvements in speed and accuracy. Many types of software automation have been around for a long time, but RPA technology is sufficiently reliable and scalable to meet the demands of a business as complex as mortgage processing. Although mortgage-related operations are complex, this industry is ideally suited for robotic solutions because we are very rules-driven. As a highly regulated industry, we tend to think of rules as constraints. However, in technology, rules are what allow us to create software that can make choices based on logic. Bots can be programmed for a wide variety of tasks. They can search the internet for necessary data—property addresses, for

example—and fill in data fields, often completing a day’s work in one hour. Bots can follow up with vendors, issue appropriate correspondence, process payments and flag discrepancies for human review. And there’s more good news. In addition to streamlining processes and speeding up response times, RPA can also improve accuracy and minimize mistakes. Software bots can review loan applications and determine if documents are missing or otherwise in error. They can catch glitches that might be overlooked, and immediately communicate the problem to keep the application moving forward. Bots reduce the potential for human error by completing repetitive, routine data entry tasks. Without complaint. Of course some people hear the word “robotics” and immediately think we’re talking about eliminating staff. But RPA is really

about removing tasks, not people. By taking on the most mundane back-office jobs, bots can free personnel to do more interesting and rewarding work and keep the focus on delivering a quality experience for customers. By delegating work to bots, people have more time to engage with clients, resolve problems and provide high-touch customer service. And maybe even take a coffee break. Although implementing enterprise-wide RPA at Carrington Mortgage Services has been an exciting development, it’s not the only innovation we’ve identified as a high priority. Our team is focused on a number of cutting-edge technology initiatives including artificial intelligence, data mining and digital document automation. They’re all playing an important role in how we operate and meet the needs of the marketplace—now and in the future. Digital transformation is giving our industry new access to consumer data and fresh insight into market trends. Data mining enables us to tap into vast digital storehouses of useful information, such as the desirability of specific loan products or loan activity by location and other demographic variables. Data mining can help evaluate performance, identify needs and determine ways to better serve customers. We can even use it to help originators locate prospects and market to them in a more targeted way. For an industry drowning in paper, digital document automation replaces laborious manual processes with software that can automatically extract key data variables and index many hundreds of pages of different documents, enabling an easily managed workflow that speeds delivery for customers. And, of course, all these technologies require collecting and analyzing data carefully and responsibly. New technologies, new challenges Deploying any new technology requires rigorous risk management,

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important to know all details of how information is stored and transported, and whether there are any service providers or partners who may also gain access to data. IT risk must be examined at every layer of every relationship to ensure that contractual, technical and operational controls are enforced. In summary: There’s no doubt that technology is helping the mortgage industry to make better business decisions and be more

responsive to consumers. Exciting new technologies are aimed at facilitating mortgages and streamlining processes. From ensuring data accuracy and automating tasks to maximizing

the potential for using data to inform future strategies, technology innovations will continue to make a big contribution—aimed at helping mortgage originators and consumers alike.

Brent Rasmussen joined Carrington Mortgage Holdings in 2011 as Executive Vice President and Chief Information Officer, responsible for setting the technology strategy and direction for the company and its operating units. With more than 20 years of enterprise technology management experience, he oversees every aspect of the company’s technology.

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with unconditional commitment to protect the privacy and security of customer data as our highest priority. In implementing RPA, risk management and due diligence must be incorporated into every phase, starting with assessing the technology—its maturity, the platform providers and user experiences. It’s also important to consider operational and adoption risk. Any new technology is only as good as the quality of the results it produces. Deploying RPA requires enterprise-wide buy-in and inclusion of multiple disciplines. Operational departments must be ready to embrace change; and goals and processes must be clearly understood. Mechanisms for measurement and monitoring need to be in place. Potential problems must be anticipated, such as buildup of work-in-process resulting from accelerated speeds that can cause bottlenecks. Risk mitigation must be baked into every aspect of every project. The overall management of IT risk is a multi-layered challenge, with three main components: people, process and technology. It’s important to contemplate IT risks across all environments. The technology must include many layers of monitoring. A culture of protecting the customer is crucial. Best-practice fundamentals must be embedded in daily processes such as change authorizations. Vendors and suppliers have to maintain the strictest security protocols, too. However, even with perfect processes and the very best technology, it’s the people who will need to make everything come together and work flawlessly. Robust personnel training, topdown support and listening to feedback from all parts of the organization are essential. Another key trend affecting risk management is new innovation in digital transactions and convenience-enhancing solutions, many of which are made possible by seamlessly sharing information. These creative new capabilities are being created and adopted at an accelerating rate, and it’s increasingly important to incorporate a robust due diligence process, in conjunction with transparent monitoring, when considering any new solution, supplier or partner. An aggressive approach to thirdparty governance is required to thoroughly understand where data resides and who has access. It is

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Avoiding the Pitfalls of Technology Implementation By Kyle Swensen

ver the past several years, tech chatter in the mortgage industry has focused primarily on the need to adopt newer and better platforms to keep up with demands for convenience and efficiency. And rightly so. With a generation of digital natives entering the homebuyers’ market, it’s reasonable to assume that if a company wishes to remain relevant, it must adapt to the needs and expectations of its customers. Unfortunately, purchasing the newest, slickest technology isn’t enough to ensure a company’s foothold in the future. To truly maximize return on investment, an organization must also achieve buy-in at all levels, successfully apply the newest tool, and create an environment conducive to the continued maintenance and application of the platform. This can be a lengthy, arduous and expensive process, which is why long-term strategic planning and the thoughtful allocation of resources are necessary to avoid the common pitfalls of technology implementation.

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Achieving executive buy-in The first pitfall can actually occur before a new platform is even purchased when achieving executive buy-in is seen as the endgame rather than the beginning of the process. Of course, nothing can happen without leadership’s giving the green light, but it’s short-sighted to view this permission of investment as the largest hurdle to a company’s tech advancement. In the great wide world of technology sales, the primary goal of vendors is to achieve that buy-in. They accomplish this as they make presentations displaying all the bells and whistles a new platform has to offer. Promises

of user-friendly dashboards, endless API capabilities and unlimited support abound. Assurances of easy management and simple integration are made. Often, the only question left seems to be, “What can’t this new technology do?” However, a savvy buyer can avoid the temptation to blindly stumble ahead and sign a contract by first asking some critical questions and then performing a thorough evaluation of the answers. Setting clear expectations and defining the scope of a project from day one are the first critical steps to ensuring the long-term success of any new technology. Asking the right questions Perhaps the looming question that needs to be asked is, “Who?” Who will be in charge of the new platform? Who will be involved in development? Who will be the project manager? Who will be the vendor account manager? Who will train new users? Who will promote the new product? Who will manage the long-term maintenance of the tool and ensure it operates at its best? The obvious answer is that many people will be needed to fulfill these roles, which means that in addition to the company’s initial financial investment, there will also be an investment in personnel. In a perfect world, businesses would have an endless pool of employees completely trained and always available to handle an infinite number of projects. Unfortunately, the reality seems to lean in the opposite direction; there are seldom enough staff or hours in a day to complete all the tasks at hand. Answering the “who” question is critical when determining whether a company can actually afford the full commitment of resources required to develop, launch and maintain a new

program. Management should be wary of the assumption that a vendor will provide the staff necessary to meet all the needs of tech integration, and although they may provide some support, more often than not the lion’s share of that responsibility will fall on the purchaser of the product. Likewise, it’s important to avoid the temptation to rely on current employees to carry the burden of implementation and platform maintenance. It may be necessary and prudent to hire temporary consultants or train permanent staff to perform the duties required for a successful product launch. These roles may include a project manager, a product owner (also known as a subject matter expert) and a marketing coordinator who will be a key component in achieving buy-in from employees, business associates and potential clients. The true investment Delaying the identification and designation of these roles up front can lead to another pitfall of technology implementation: underestimation of true investment. If a buyer isn’t careful, the exciting prospect of adopting the newest and greatest tech can overshadow the need for practical foresight. When that happens, it can create a chasm of disconnect between the thrill of executive buy-in and the reality of what’s to come. This stumbling block can be avoided as long as those responsible for purchasing new software can clearly outline the implementation and maintenance needs before the financial investment is made. Defining these requirements from day one will help lay the foundation for a successful rollout by allowing for the proper allocation of time, money and personnel. Time is money Prosperous companies know

the value of moving quickly and being adaptable, and they will apply those standards to their business practices. As the saying goes, time is money, and like all facets of the mortgage industry, efficient time management is critical during the rollout of a new digital tool. Building a clearly defined road map and time line from the outset of implementation is necessary for an effective launch. Managing expectations is key. Knowing from the start that a product launch rarely happens as quickly as first anticipated can alleviate anxiety resulting from unexpected delays. A skilled project manager will build buffers into the rollout time line in expectation of potential speed bumps and will vigilantly communicate with all interested parties every step of the way. In addition to laying out a project time line from the beginning, it’s also important to identify additional areas that will require financial output along the path of implementation and maintenance. Often, new software necessitates new infrastructure such as upgraded servers, additional storage or improved backup systems. Outlining these potential costs from the beginning can help a company budget and plan for the complete life cycle of a new tool. Remember, developing a well-thought-out road map that allows for unexpected delays and additional costs can be invaluable when trying to avoid the pitfall of mismanaged expectations. A company that engages in conservative preparation will ultimately benefit from fewer surprises and better results. Ready for use Once the product has been developed and integrated, the next phase of the process is successfully marketing the

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tool and achieving buy-in from potential users. Failure to effectively launch a new system can be one of the most disappointing pitfalls a company can encounter. However, this snare can be avoided by having the right marketing and training plans in place. Ensuring the marketing team is heavily involved from the beginning of the process is important for this portion of the implementation to run smoothly. They will be responsible for branding the tool, showcasing its functionalities, coordinating training sessions, promoting its capabilities to interested parties and communicating future enhancements and upgrades. Without a wellcoordinated marketing strategy, a new platform can effectively be rendered useless before it even has the chance to deploy.

the information contained herein. Castle & Cooke Mortgage is an Equal Housing Lender.

Kyle Swensen is Director of Information Technology for Castle & Cooke Mortgage LLC (NMLS #1251). With nearly two decades of IT experience, Swensen manages and oversees all technology initiatives within the company and is committed to finding solutions that enhance the customer experience and improve company efficiencies.

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Contact Ron Vaimberg, nmpU Executive Director & Head Coach directly at 888-979-6678 Ext. 801 or email at RonV@MortgageNewsNetwork.com for more information and pricing.

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The payoff Despite potential pitfalls, a company can successfully develop, integrate and launch new software, and once users are on board, the results can be positive and worth the journey. With careful forethought, planning and appropriate resource distribution, adopting a technology solution can be one of the best investments a mortgage company can make

Information contained in this article does not constitute legal, financial or other professional advice or services and should not be used as a substitute for professional advice. The purpose of the article is to provide the opinions of Castle & Cooke Mortgage, LLC (NMLS #1251) and

general guidance on certain matters related to mortgages. The reader accepts full responsibility for the use of

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Begin with the end in mind Ultimately, a business purchases new technology to solve a problem. Keeping that end goal in mind throughout implementation can help the process remain on track and ensure the software actually fixes the issue it was intended to address. Developing proper reporting methods is crucial in measuring a tool’s short- and long-term efficacy. Ideally, the best digital tools will also provide additional functionalities that will continue to improve efficiency and maximize a company’s return on investment. As a company evolves, so should the technology it employs. The smartest investors will never stop asking, “What else can this technology do?”

for its future security and success.

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Engaging Technology: Tech, Training and Why It Matters in the Mortgage Space

By Ken Perry

he mortgage industry has some catching up to do in terms of technology. The interesting thing about our industry is that most everyone who’s still here has been part of the field for a long time because we lost so many new people in the crash. The result is that mortgage people don’t really know technology. And when technology people venture into our industry, they don’t really know mortgage. But the incorporation of current technology is vital to the evolution of our industry. Technology needs to be part of every step of the lending process and day-to-day operations. Effective sales software handles the process of following up with potential customers. You can automatically check social media advertising for CFPB compliance. Borrowers can even sign initial disclosures right on their phone. Technology must be a part of your training strategy, too. If you look at the CFPB’s Examination Manual, it says you need training on every single policy within your company. Generic, off-the-shelf stuff isn’t going to cut it. You need training that your employees will actually remember and use every day in their jobs. With regulations becoming increasingly complex, mortgage lenders who stay agile and adapt will be those that survive. Yet we’re not reacting as quickly as we should. When we first started developing training programs, we found the existing training technology was seriously outdated and not very useful. A lack of investment has resulted in a stagnant technology culture that’s hurting our field.

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Flipping weakness to opportunity Let’s say you’re an MLO at a company that dusts off some ancient manual and says, “Here’s your training.” Or they send you a few YouTube links to videos about compliance and call it a day.

“Let’s face it: Non-compliance, or merely a lack of focus on compliance, will hurt your company in the long run.”

How would you feel? I bet you would think this is a waste of your time—and you might be concerned that you don’t really understand how to meet federal and state requirements. You certainly wouldn’t feel like a valued employee or that you were part of a business that took compliance seriously. Instead of generic material that makes your employees feel like cogs in the machine, you can provide more substantive experiences. Training done right is an investment in employee engagement. More and more in our field, employees are leaving their jobs when offered a marginally better paycheck somewhere else. They have no loyalty to their employers because they don’t think their employers are loyal to them. When employees leave, it’s expensive to replace them, your company loses valuable institutional knowledge, and,

perhaps worst of all, workplace morale plummets. But you’re more likely to retain employees when they feel their work is meaningful and believe that the company is invested in their success. Training that actually works The world is going to video and so should your training. Providing targeted, dynamic video training offers a more engaging professional education experience. You also want your training delivered by industry experts who are up-to-date on the latest trends. Another important function that technology offers (and that not enough people are taking advantage of) is tracking. If you’re not checking to ensure employees are taking the training courses and learning from them, then there’s no accountability. So while it’s all well and good to offer video-based training, it’s

not worth much if you can’t track, document and retain records of what people have done. That’s where a Learning Management System (LMS) comes in. It’s easier than ever to track each employee’s progress and quickly quiz them on what they’ve learned through using an LMS. This is also useful on the compliance side for when you need to demonstrate that your business is adequately training employees. We’ve all seen the power of social media in marketing and sales, but interactive technology can support high-quality training, too. Working with employees to create a knowledge base on compliance issues ensures that your business remains current with regulations. You can also provide ways for employees to ask and answer questions with their colleagues. It’s not only what technology does for your employees; it’s also how it does it. Over time, you’ll see cost savings in time and energy expended on training along with higher operational efficiency. When it comes to training, ask yourself: when my people get a training request from me, do they get excited or annoyed and angry? If you aren’t satisfied with your answer, it won’t be a surprise when employees leave your company for your competitors. The good news is that it’s possible—and not particularly difficult—to engage with your people on a deeper level and to convert training to one of your strengths. Establishing engaging training programs that harness technology is a good move for retention. Help your margins with technology-driven compliance There’s a lot of talk about deregulation on the horizon, but mortgage lenders will still have to meet training requirements. Already the cost of gaining compliance on each loan has nearly tripled in recent years and is the most rapidly increasing operational cost. Lenders consistently report that compliance is one of their top priorities. Yet while lenders say they’re worried about it, that doesn’t

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minute video or 10 more e-mails to wade through? Which training material do you think gets looked at more: the one right next to the easy-to-digest daily video or that policy binder on a shelf

somewhere that you told everyone to read? With nothing more than a smartphone he’s engaging his people in meaningful ways that drive business results. That’s what technology can do for this industry.

Ken Perry helps companies stay compliant so they can keep doing what they do best … selling loans. He started his journey in mortgage lending in the late 1990’s as a Loan Originator and then went on to become President and Founder of The Knowledge Coop in 2003 after seeing an opportunity to make the mortgage lending world a better place through training and CE that’s easy and fun.

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Right where you want them One of our clients does a video and puts it in their system every morning. It goes right into the same system where people take their

compliance training. He takes time every day to reach out to his people and literally stay in front of them. We’re not talking fancy, highly-produced videos—just a few minutes a day, from his desk. And he does it right inside the system they use for training and compliance. So important updates, happy birthdays, shout outs to top performers, and so on—all of it goes into the morning video. Which do you think gets through to people better, a three-

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always show up in where they spend their time and money. If your company’s approach to training is that the “same-old, same-old” is okay, that’s not good enough. When you don’t invest in training, it’s going to be out of date and not that helpful. It also shows your employees that training isn’t a priority, which could have unintended consequences. With our ever-changing industry, compliance issues are more complex than in the past. Companies like Rocket Mortgage are attempting to streamline the process for consumers and make loan approval a very speedy process. Fintech in general is making it more likely that borrowers will refinance—and that they’ll refinance at the optimal rate. In fact, default rates on these loans are 25 percent lower than on their traditional counterparts. These shifts mean that compliance is even more important than ever before. Regulators will be paying more attention to those offering new loan products and employees will need to be confident in their training to stay compliant. This means that compliance, perhaps surprisingly, has become an opportunity for innovation in our industry. If your company is utilizing state-of-art technology to drive compliance, that gives you a competitive advantage. Consider too, in the past only big-name brand lenders could offer the highest levels of training and a robust compliance program. But now even the smallest operations can leverage the same technology as the big companies. That’s a game changer. Let’s face it: Non-compliance, or merely a lack of focus on compliance, will hurt your company in the long run. Mortgage lenders who fail to come into compliance face fines and may even risk losing their licensure. Compliance officers are under more pressure than ever before to deliver high-quality results, as in some cases they can be held personally liable for noncompliance issues. Just like we’re seeing technology used on the borrower side, using technology to streamline your training and compliance programs just makes good business sense.

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The Dodd-Frank Rollback: Why Digital Mortgages Matter Even More Now

By Curt Tegeler

t finally happened. We’ve been hearing chatter about it for months and months: Congress rolled back DoddFrank, freeing smaller lenders from constraining regulations that thwarted their ability to compete with larger financial institutions. The mortgage industry used to be like the Wild West. Loan Officers marketed themselves without accordance to their respective lenders. Brokers originated loans with disregard to a borrower’s ability to repay. People were upset; change was necessary to ensure that nothing like the 2008 Financial Crisis ever happened again. Today, our big banks boast stronger balance sheets than ever before. They’re positioned to withstand another potential crisis like the one in

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2008—without any government intervention. Despite those positive benefits, legislators took regulation too far and strangled smaller lenders. Mid-sized and small-sized, or regional and community banks, struggled to thrive—let alone survive—in the wake of the financial crisis. Neighborhood banks that served neighborhood folks couldn’t serve them the way they used to. Customers that stayed with their local banks and worked with loan officers they knew and trusted couldn’t get a mortgage from them as easily as they wished. Mid-sized lenders couldn’t grow at the pace they wanted to compete with each other, let alone bigger competitors. Among other regulations, DoddFrank’s qualified mortgage—with its strict underwriting standards—

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prevented smaller lenders from bouncing off their financial crisis bottom. Thanks to the Dodd-Frank rollback, lenders with up to $10 billion in assets will no longer be constrained to the strictest federal underwriting standards to achieve legal protection. The standards will still improve upon pre-crisis requirements, but take a significant step back from the restrictive standards of qualified mortgages. This will not only allow small- and mid-sized lenders to compete; it will allow for more hard-working Americans to achieve their American Dream of buying a home—and paying it off in a reasonable manner. So, what does technology have to do with this? Having the best digital mortgage platform is essential to maximizing benefits from the Dodd-Frank rollback. Technology maximizes the rollback’s benefits in four key ways: l l l l

Reeling in more borrowers; Automating compliance; Streamlining processes; and Increasing margins.

Reeling in more borrowers entails reeling in Millennials, as this cohort makes up the bulk of new homebuyers. According to an Inc. Magazine article, Millennials make up nearly two-thirds of first-time homebuyers, and nearly two-thirds of them plan to buy a home in the next five years. Demographic trends, such as Millennials’ delay of getting married and having children, have stood as scapegoats for Millennials’ lack of homebuying. But as Millennials age, they enter their prime earning years, get married and form households, start families, and, yes, buy homes. That said, other impediments exist: Student loan debt. Reports from Business Insider and MarketWatch indicated that rising college tuition costs and increasing student loan debt further prevented Millennials from buying homes. Qualified mortgages entailed a borrower’s ability to repay. A borrower’s loan payment not exceeding 43 percent

of his/her income poses as a key tenet of qualified mortgages, and the burden of student loan payments may very well push a Millennial borrower over the 43 percent threshold. Perhaps as lending standards loosen, more Millennials will apply for loans as their credit scores, debt-to-income ratios, and overall financial situations pose as less of a blockade. As more Millennial homebuyers apply for mortgages thanks to their demographic shift and more lenders can finance their homes thanks to renewed lending standards, competition grows. Recent trends show that lenders with the best digital mortgage solutions outpace competitors. According to a study conducted by the National Association of Realtors (NAR), 99 percent of Millennial homebuyers went online to gather information during their homebuying process. The 2017 J.D. Power U.S. Primary Mortgage Origination Satisfaction Study indicated that the portion of mortgage customers applying digitally jumped 54 percent year over year, from 2016 to 2017. Just because legislators rolled back Dodd-Frank, compliance still matters—a lot. The key policy change allows smaller lenders to loosen their underwriting standards and still enjoy legal protection on those loans. Lenders hesitated to loosen their lending standards previous to the rollback because they would lose that coveted legal protection. Thus, adhering the underwriting standards that exist after the rollback poses vital to lending expansion. Digital mortgages automate compliance in a variety of ways. For instance, mortgage point-of-sale (POS) applications can integrate with credit verifiers, financial data providers, and other third parties that provide employment, income, and tax information. By doing so, lenders pull borrower information directly from credible sources. With credible information, lenders can underwrite compliant loans. Moreover, other digital underwriting tools, such as pricing and decision engines or rules engines that analyze bank statements, help

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lenders originate loans that balance the reward of reduced regulations, risk of default, and importance of compliance. Ideally, this regulatory rollback will mean increased loan volume for smaller lenders. But lenders need the infrastructure to support increased production. Just as a hard goods manufacturerâ&#x20AC;&#x2122;s factory might need to buy a new machine or shift its processes to grow production capacity, a lender needs to optimize its mortgage factory to handle increased production. Moreover, by streamlining processes and boosting efficiencies, lenders can close more loans faster and beat out competitors. Mortgage POS applications make loan origination easier. Loan Officers can handle more capacity and generate more loans simultaneously with the help of a mortgage POS. For instance, LOs no longer need to get in their car, drive to a borrowerâ&#x20AC;&#x2122;s home, slowly fill out a mortgage application line by line, and sift through a stack of papers needed for underwriting. The borrower does all of that at the ease of their computer or cell phone. LOs no

longer waste time emailing back and forth, faxing documents, or shipping papers to receive signatures, as mortgage POSs digitize and often time automate those processes as well. Integrations with loan origination systems (LOSs) afford for streamlined processing and underwriting processes. These integrations automate data sharing, so that LOs, processors, and underwriters no longer spend time on data entry. As loan volume increases, so will revenue. But revenue boosts donâ&#x20AC;&#x2122;t always translate to a significant boost in the bottom lineâ&#x20AC;&#x201D;especially if lenders do not appropriately react to production increases. Mismanagement can cost money; the implementation of digital mortgage software doesnâ&#x20AC;&#x2122;t just prevent that mismanagement, but it simultaneously improves margins while growing the top line through reducing loan origination costs and increasing workflow efficiency. According to a white paper published by Angel Oak Mortgage Solutions, â&#x20AC;&#x153;The non-QM [non-

qualified mortgage] lending market has the potential to be a $100 billion annual market; however, its current size is less than $3 billion.â&#x20AC;? This projection says that this portion of the mortgage market can grow 33 timesâ&#x20AC;&#x201D;33 times! Based on that projection, non-QM lending presents a lucrative opportunity and viable new revenue stream for smaller lenders. Plus, these loans produce bigger yields since lenders take a larger risk on these borrowers. Imagine that a lender generates $10 million in revenue, only producing qualified mortgages. Under the new regulations, the lender grows its revenue by 20 percent to $12 million thanks to the new revenue stream of non-

QM loans, and nets an additional $600,000. If digital mortgage software improve profit margins by, say, a humble five percent on a nominal basis, the lender would net $700,000 on the additional revenue streamâ&#x20AC;&#x201D;a $100,000 improvement. The Angel Oak Mortgage Solutions white paper clarifies that todayâ&#x20AC;&#x2122;s non-prime and 2006â&#x20AC;&#x2122;s subprime mortgages do not compare. Compared from 2006 to 2018 for the non-prime market, credit scores increased from 580 to 690, a downpayment is required, and income must be documented. In essence, the white paper indicates that even as lenders expand their lending standards, they still mitigate the risks that plagued the sub-prime mortgage crisis.

Curt Tegeler is WebMax CEO and President, responsible for providing direction for action to all employees and business initiatives. Tegelerâ&#x20AC;&#x2122;s main responsibilities include communicating and implementing the companyâ&#x20AC;&#x2122;s vision and mission; leading, guiding, directing, and evaluating the work of executive leaders; formulating and implementing the strategic plan; forming, staffing, guiding, leading and managing WebMax; evaluating organizational success; and represents WebMax in civic and professional activities. 59

You didnâ&#x20AC;&#x2122;â&#x20AC;&#x2122;t kn Yo now

you could be paying g 50% less.

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year after year after year after year

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Itâ&#x20AC;&#x2122;â&#x20AC;&#x2122;ss OK!

STA TA AT TE LIC CENSE SURETY BONDS

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Automatic for the People: Mortgage Origination Without Manual Intervention By David Parker

sk any Loan Officer to pinpoint the most satisfying aspect of their job, and their answer is likely to be along the lines of how they connect people with their dreams of owning a home, be they first-time homebuyers, emptynesters, urban professionals purchasing a city pad downtown, a family seeking a piece of suburban bliss, or a rural oasis on an acre of land. Conversely, it would be extremely unusual for them to wax lyrical about the multitude of manual tasks that are considered a necessary evil in their everyday work. Loan origination usually means wading through reams of paper and performing repetitive, time-consuming and manual tasks. It should hardly come as surprise that building a rapport and human connection with the borrower beats the paper-based workflow hands “Borrower expectations for seamless and fast service are down. continually increasing, which means lenders need to reset Borrower expectations for seamless and fast service are their own processes to deliver a mortgage experience that continually increasing, which means is in step with the way people live today.” lenders need to reset their own processes to deliver a mortgage experience that is in step with the way people live today. online. When thinking about future considering multiple factors, loans, many consumers are including gravitating from paperConsumer experience is key comfortable with researching, based, labor-intensive mortgage Recent Fiserv research found that applying for and managing their origination tasks to automate elements of the borrower loans online. certain processes and reduce experience—Customer Service, The research also found that costs, offering the electronic Company Reputation and consumers are willing to perform mortgage experience consumers Knowledgeable Staff—are new kinds of tasks that expedite the increasingly want, and freeing up important to consumers when loan process. More than half are staff to concentrate on human choosing a lender. Seventy-five willing to e-Sign loan documents, interaction. Consumers still value percent of respondents cited this upload loan materials and driver’s personal attention and consultation, as a key factor when choosing a licenses, and verify their identities especially when it comes to making lender. Prior experience also plays via mobile. what is, in many cases, the largest an increasingly important role in purchases of their lives. subsequent lender choices, with 74 Meeting changing borrower Many lenders continue to percent who have a loan saying it expectations process loan documentation has at least a moderate influence— Even for big decisions such as manually and have been slow to up from 61 percent in the previous buying a home, consumers demand expand their technology platforms year’s survey.1 intuitive services that make life to leverage new automation tools Growing comfort levels with easier. Meeting these rising that can help speed their loan online processes have made it fairly expectations and providing a manufacturing process. Meanwhile, common for consumers to frictionless, digital borrower origination costs have increased complete some aspects of the loan experience is essential to lenders’ from $5,985 in 2008 to $8,887 in process online. For example, 46 success. The question becomes, 2017.2 These rising costs can be percent of consumers who have a attributed to a combination of how can lenders strike the right loan have accessed their loan factors: non-scalable platforms that balance between employing new statements online, while 42 percent technologies and human interaction lack automation tools to streamline have scheduled their payments and engagement? This involves operations, staffing increases to

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grow business, and relatively new regulations such as the TILA-RESPA integrated Disclosure rule (TRID), the Uniform Closing Dataset (UCD) and the Home Mortgage Disclosure Act (HMDA). Intelligent content recognition reads a page like a person, but better Lenders can address rising origination costs and effectively implement a solution where they can reap the real benefits of automation and scale their operations. From preapproval onward, the document and data capture can be automated from all types of lending channels. It allows for the automation of loan data verification between systems to produce a much higher quality loan file. Lenders want automation tools that are system agnostic, meaning they can sit beside any origination or servicing system and create a trusted, trackable loan record across the entire life of the loan. With the right partner, Originators can implement tools to automatically identify loan documentation at point of receipt, whether documentation is sent via Web portals, facsimile, email or directly uploaded to an origination system for review and classification. Servicers can leverage the same technology when onboarding thousands of loan files, classifying, verifying and comparing the data to ensure accuracy. The platform has intelligence built in, using a combination of rules and an image library to give a higher classification and extraction rate. Good systems will have out-ofthe-box rule trees. As rule trees have become smarter, most systems have upward of 350 pre-defined document types that are primarily industrystandard documents. Yet, not all systems come with state-specific disclosures, bank statements, W-2s and ACH setup forms, or the flexibility to quickly adapt to new laws and regulations. With more than 250 data extraction fields on each loan application, Originators and servicers alike need a high performing system that can verify 100 percent of the elements and present only the exceptions for review. The data automatically

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reviews, the 250-plus data fields are leveraged to pull that information out and downstream as part of the workflow processes. Only items that the system is not able to identify with a high degree of confidence are presented to a Three steps to success human user for verification. There is An advanced automation solution fundamentally works in a three-step also a degree of intelligence to read handwritten data, and even a process—the first pass identifies statistical reporting database, which the documents, even a package of is used to identify trends within the documents that consists of documents and determine where hundreds of pages made up of improvements can be made within PDF and image documents. The engine is able to automatically split the application. Good automated solutions can these into specific documents take action on those documents to based on definitions stipulated within the rule tree. It does not rely automatically compare them to the loan origination system and ensure on barcodes or separator sheets, data consistency. At a minimum, as the system has the intelligence this reduces, and in some cases, to know where documents begin entirely eliminates, “stare-andand end. compare” manual processes. The second stage is a final version stage; this particular feature Examples include reviewing the borrower’s note to ensure the can identify multiple instances of a name, address, and term of the document within a package, loan match the loan origination execute rules against those system as part of the post-close documents and automatically review process. It also supports determine the final version. document–to-document audits to The third stage is the data ensure all critical documentation extraction phase. For documents contains matching loan that have been defined as critical and require more specific data audit information. extracted can also be used downstream to automate a number of different audits. This ultimately results in a simplified and more accurate process.

To err is human, to automate is divine The benefits include reduction of loan review times, while accuracy is increased as manual intervention is removed. This includes reducing data entry errors that could otherwise occur and or human entry errors. Automating tasks within the loan process does not necessitate reducing staffing levels; it is about enabling staff to focus on the borrower experience and leveraging technology to process every document consistently, resulting in higher quality and more reliable results. Document review and verification can occur 24/7, speeding processing time and

shortening origination timeframes. The possibilities for human errors— from overlooking a figure to accidentally checking a document off the list too soon—are eliminated. Reducing the hands-on time also reduces the overall cost per loan. Taking the bulk of low-value document collection and comparison off a Loan Officer’s list enables them to focus their time and energies on getting the life-of-loan experience right for the borrower, which has never been more important. Similarly, automation enhances loan quality, which adds up to less investor and regulatory risk, a reduction in costs, improved efficiencies and overall peace of mind for the lender.

Footnotes 1—SC.pages05.net/lp/46886/639593/Expectations-Experiences-2018-Borrowing-WealthMgmt-0118.pdf 2—MortgageOrb.com/MBA-Cost-Originate-Mortgage-Hit-New-Peak-Q1-8887-Per-Loan

David Parker is Director of Product Strategy for Fiserv LoanComplete. He is responsible for all facets of the LoanComplete product. Prior to joining Fiserv, Dave was a Senior Manager for CoreLogic’s Mortgage Technology Solutions Division, working with banks and financial technology companies to envision and execute complex business transformation projects using data, services and technology solutions. 61

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Leveraging Tech’s Three Pillars at the Individual Level By Steve Richman

wenty years ago, credit reports came over on fax machines and were printed on thermal paper that would curl up and roll behind the file cabinet. Twenty years ago, runners (actual people) would sit in a lender’s office waiting for the final docs to be produced so that they could “run” them over to the title company just in time for closing. Twenty years might not seem like a long time. After all, most mortgages are underwritten for 30 years. However, when it comes to mortgage technology, which is evolving at a dizzying pace, 20 years can be several lifetimes. Unfortunately, mortgage professionals use the term “technology” as a catch-all and too broadly. Mortgage-related technology should be viewed and discussed through two equally important, yet distinct prisms: Enterprise technology adoption, which involves centralized tech initiatives at the company-level, and individual technology adoption, a less discussed topic regarding tech solutions that individual employees can leverage to improve their productivity. Enterprise technology solutions include platforms like customer relationship management systems (CRMs), loan originations systems (LOSs) and a company’s own Web site and/or developed downloadable apps. They often involve vendors, an internal tech team, buy-in from senior leaders and, almost always, significant expense. Mortgage conferences have sprung up across the country for vendors to showcase their latest enterprise technology solutions, and lenders spend significant time and resources implementing and training their employees on these solutions. Individual technology adoption, however—the ability to embrace today’s helpful tech tools at the individual level and without the need of management or IT support—is what can make a sizable and immediate impact for you at little-to-no cost.

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“… when it comes to mortgage technology, which is evolving at a dizzying pace, 20 years can be several lifetimes. Unfortunately, mortgage professionals use the term “technology” as a catch-all and too broadly.” The three pillars: Communication, information and efficiency There are three key pillars of individual technology adoption for Loan Officers: How technologies improve communication, how technologies can be used to inform/educate, and how technologies increase efficiency. Tech to improve communication Lenders often implement enterprise tech solutions to help improve internal communications between employees and external communications between your organization and your customers. These include e-mail, CRMs, texting solutions and more. As an enterprise solution, many real estate agencies have implemented Dotloop with great success. This technology enables the real estate agent to create a loop that allows access to whomever they designate to view

all documents downloaded into the loop. Lenders have had concerns adopting this enterprise technology as they need to protect the confidential personal information of their customers. However, several lenders have implemented or are creating their own equivalent technologies to Dotloop. In the individual adoption tech solutions category, there are an abundance of options you can explore today to help you improve your communications. BombBomb is a technology which is gaining adoption at a rapid pace. Combining the ideas that people have an evershortening attention span and that a picture is worth a thousand words, BombBomb allows the user to send video e-mails which has the effect of improving overall communication. Similar to BombBomb, Marco Polo is an app that allows users to send video texts. However, it is important to note that, with this

technology, the recipient needs to have downloaded the app to their phone to receive the message. Handwritten “Thank You” notes have been a long-standing tradition. However, technology has changed this arena as well. Touch Note and Postagram are technologies that provide very similar communication options to originators. These apps produce a “Thank You” postcard that is delivered directly to the costumer. While it utilizes the U.S. Postal Service, not the newest technology, the creation of the postcard has been modernized. After settlement, it allows the Loan Officer to submit a picture through the respective app, type a personalized “Thank You” response, and the postcard is created and mailed to the customer. This use of personalized picture and message, creates a more effective communication opportunity than a hand-written note without a picture. Lastly, but continuing with the need for visual content for communication, memes are dominating the space. It used to be that pictures were combined with words underneath and those words were called captions. Today, the words are layered on top of the picture and that is called a meme. An easy-to-use meme generator for improved communication can be found at ImgFlip.com/. Tech to keep informed/educated As previously stated, the mortgage market is in constant flux and the Loan Originator needs to have upto-date information about the market, consumer trends, the competition and more. Most Loan Officers have some type of “rate alert” technology that has been implemented as either an enterprise solution (the lender has paid for it and implemented it for the entire sales team) or an individual adoption solution (where the individual LO subscribes to a service of his/her liking). If you are looking to stay informed on the mortgage industry, track competitor offerings and understand trends, Rob Chrisman (RobChrisman.com) produces a daily mortgage commentary newsletter

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drive for business or personal bedrooms and bathrooms, when it reasons and it will create a was last sold and what it last sold summary of business miles driven for. That is efficient. in your car, which will allow you to And to efficiently calculate MI Tech to increase efficiency take a proper and legal deduction premium, a Loan Officer can visit The final category is that of when filing tax returns. New.MI.Genworth.com and pull up efficiency. Weâ&#x20AC;&#x2122;ve so far discussed Hold your phone in your hand Genworthâ&#x20AC;&#x2122;s Rate Express and by technologies that will make you, the inputting minimal data, get a mortgage professional, an improved and turn around 360 degrees, and comprehensive and accurate MI communicator and better informed MagicPlan will give you the dimensions of the room you are about our industry. They, in turn, quote. standing in. will also help improve your So, there you have itâ&#x20AC;&#x201C;some of the HomeSnap offers service thru efficiency because there are even most fascinating and gameboth an app and a Web site. more technologies out there that changing technologies, that you, Simply aim your phone at a home will help improve both yours and yourself can implement to improve and click while using the app or the homebuyerâ&#x20AC;&#x2122;s efficiency when communication, learning and open the Web site and type in a purchasing a home. efficiency, making you not only property address. In either case, HomeFacts.com is a Web site faster and easier to work with, but the user, Loan Originator or that will provide statistics, also more tech savvy than ever demographics and general data by consumer will immediately be told before. Now can you imagine what the year the home was built, zip code, broken down for mortgage technology will be able to homebuyers and Loan Officers to square footage, number of do for us in another 20 years? help improve efficiency in Steve Richman is Genworth Mortgage Insuranceâ&#x20AC;&#x2122;s National understanding various Spokesperson and Customer Sales Trainer. He has neighborhoods. energized, taught and motivated more than 150,000 The AroundMe app allows the professionals in every state in the U.S. After years of homebuyer to click on the app success as a Litigation Attorney, Steve entered the mortgage while looking at a house, which will and real estate profession and has become an expert in the immediately identify the nearby high LTV borrower market. Steve has taught in the MBA restaurants, banks, libraries, program at the Sellinger Business School and has been a schools and movie theaters. guest lecturer for the Columbia University Business Schoolâ&#x20AC;&#x2122;s MileIQ is ideal for Originators and MBA program. Additionally, Steve has served as an adjunct real estate agents. Just click on the faculty member at an undergraduate institution. app to delineate each time you Lending at BlogTalkRadio.com/LykkenOnLending.

that will be delivered directly to your e-mail Monday through Saturday at no cost. If you are trying to stay current on the U.S. economy and the factors which influence it, Elliot Eisenberg produces and distributes free commentary via e-mail five days a week (Econ70.com). Elliot has made the commitment to not only help keep mortgage professionals informed as to what is driving the economy daily, he vows to do it in seventy words or less. This is a free service that is a must read for all originators. Another technology available for free that will allow Loan Officers to stay informed is Google alerts. Once set up, Google Alerts allow a topic to be selected, letâ&#x20AC;&#x2122;s say â&#x20AC;&#x153;Mortgages,â&#x20AC;? and Google will scour the Internet and provide you with any news about that topic. Set up your Google alerts at Google.com/Alerts. Lastly, technology is all about catering to what works for you. If reading is not your cup of tea or you spend a lot of time behind the wheel of your car, consider subscribing to podcasts such as David Lykkenâ&#x20AC;&#x2122;s podcast, Lykken on

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Bit-Trayal hate people. When I ran my company, it was not the systems, regulators or rare customer complaints that gave me the hole in my stomach. It was the managing of people. This one doesn’t like that one. This one always comes in late. That one embezzled funds. If it was possible with the technology then, I would have been the first in line at the robot factory picking out my new work force. Maybe something in mauve, this time. When the machines finally take over, count on me to betray the human race and worship the new Overlords. Call it a “BitTrayal.” Humans had a good run. Let the next evolution take it from here. I applaud the new mortgage technology. Every little baby step reduces the amount of people I have to deal with and their petty, snarky attitudes. Machines are never late, never complain, or never take off for their daughter’s doctor appointment. Sure, for the few times where I have to work with my processors, Realtors or borrowers, it is easy to put on my plastic salesman face, lovable smile and debonair three piece suite when needed. But give me a laptop, a scanner, high speed Internet and a quiet man cave and watch me go. Add a box of Devil Dogs, a six pack of Dr. Peppers and a pack of Marlboro, and I will build you a multibillion dollar mortgage company. One way I have built my

By Eric Weinstein

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“I applaud the new mortgage technology. Every little baby step reduces the amount of people I have to deal with and their petty, snarky attitudes.”

business is that I have a reputation for being really smart. I can quote obscure FNMA guidelines and FHA rules no one ever heard of. Shhhhh … don’t tell anyone, but I actually look them up on Google. It also helps at parties. If the conversation turns to 19th Century French Impressionist painters, I just feign abdominal distress, excuse myself to the rest room and look them up on my iPhone. Thirty

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minutes later, I know everything about Claude Monet, but by that time, the conversation has turned to Hawaiian volcanic activity. Back to the bathroom. I was pretty sure I could live my entire career without people until this happened: On May 10, I got an FHA condo purchase from one of my Realtors. The ratios were a bit high at a 50 DTI, but nothing FHA couldn’t handle. Great credit. Great reserves. Tons of student loans. As we were processing the file, FHA Connection comes up with a warning “Condo approval to expire May 18.” The closing date was May 30. Danger! Will Robinson. Danger! My office and the lender said they could not work on the file until the condo was re-approved. That did not

leave enough time to process, appraise the property and close the file on time, even if the condo got re-approved on the 18th. I could not imagine how to explain this to my borrower and best Realtor. I was distraught. I looked on my old friend Google, but what was even the question to ask? “Google, here is the situation, pull me something out of your bag of tricks to save this deal.” Nothing. Then, an advertisement. Really distraught now, I called my account rep and gave her the same direction. “Jill, here is the situation, pull me something out of your bag of tricks.” Well, she spoke to a friend, who spoke to a friend and here is what she told me. “As long as you get the FHA case number BEFORE the condo loses its approval, FHA will accept it and you can close. Even if the condo loses its approval later, the FHA case number freezes the condo approval in time.” Whoa! My processor and the bank looked it up and agreed. That saved the deal. Take that Data from Star Trek: Next Generation. People 1, Computers 0. As much as I hate to admit it, those biological bags of meat we call people do have a place in the mortgage ecosystem. Assuming there is a morale to this story and it is not just a bunch of random events that happened, I would venture to say it is this. In these times of increasing technology in the mortgage industry, where we come to rely on equipment to solve all our problems, it is wise to remember the human factor. Faster, smarter and more efficient computer systems are not always the answer. The truth is, until we can invent an Intel Pentium chip with true intelligence, intuition and creativity of a person, there will always be a place for that undeniable human factor in our industry. But once we develop that, you meat bags are OUTTA HERE!

Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. Eric is semi-retired, doing mortgages by referral only. He may be reached by phone at (703) 5058692 or e-mail EWeinstein4U@gmail.com.

Why Should We Care About Brand Awareness in the Mortgage Industry?

Because … branding is the perception people have about you and your company By Mary Kamelle

1. Audit your online presence: “Google yourself!” You might be surprised by

2. Find ways to produce value: Make sure that the things you post or that are posted on your behalf are helpful and consistent with your values. 3. Associate with other strong brands: “You are the company you keep!” Think of organizations you want to be associated with. You can consider the three C’s: Company, College and Colleagues. In addition to your own personal branding, how is your employer branding the organization? This should be consistent with your personal branding and it should support your sales efforts. 1. Build customer awareness: If they don’t know who we are, they won’t know why they should do business with us. If they don’t know who you are, they won’t know why they should do a loan with you. 2. Promote the Web site: A Web site can have a worldwide base, but in the mortgage industry, we are lucky that we are able to pinpoint our market to certain geographical areas.

“Good branding is about getting your prospects to see you as the provider of a solution to a problem.”

3. Add value: Our branding should offer the customer something that no one else can offer them. We must give them something … fast-track underwriting, better service, etc. Good branding is about getting your prospects to see you as the provider of a solution to a problem. A strong brand is invaluable as the market gets more and more competitive. Branding is strategic, and marketing is tactical … if you lead with branding, it makes the sales process much easier. Mary Kamelle is a Sales and Marketing Specialist at Mortgage Equity Partners and a content writer based out of Lynnfield, Mass. She can be reached by phone at (781) 309-1773 or email MKamelle@MEPLoans.com.

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Everything affects your personal brand— What you wear, how you speak, even how you compose an e-mail! According to Amy Tierce, Vice President of Sales and Marketing at Mortgage Equity Partners, “When I meet with a Loan Officer, either for an interview or with an existing LO, if they are dressed in sweatpants and a t-shirt or shorts and sneakers that speaks volumes about their level of professionalism and often corresponds to their sales figures. How you present is indicative of how you see yourself. What image do you hope to convey to the world?” The question today, in the digital age, is not whether you have a personal brand, but rather is it well cultivated? And frankly, not monitoring your brand says volumes about you as well. What do you stand for? If you don’t monitor your brand and a Millennial or any other digital savvy buyer goes online to do some research about you, your lack of presence could cost you a loan. Here are some ways to cultivate your personal brand:

what you find. Make sure all of your social media accounts are up to date or at the very least claimed.

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here are two types of branding a Mortgage Loan Officer should consider: Their Personal Brand and their Corporate Brand … and they should be consistent.

The Rise of No QM lending rising rapidly, but can we keep hile many lenders are concerned about the continued drop in conforming mortgage loan applications and what that may mean for their 2018 growth goals, others are taking a harder look at non-QM mortgage lending. A number of published reports have proclaimed that 2018 will be the year for lending to borrowers who don’t quite fit Fannie Mae or Freddie Mac’s requirements. No one is calling this business sub-prime, but some see many of the same old risks arising. Having access to mortgage loan programs that will allow lenders to meet the needs of more borrowers is welcome news, given that the MBA’s projections are calling for refinance originations to fall by 28.3 percent this year. While purchase money lending is expected to grow, there will be more competition for every borrower. Lenders have to look somewhere for growth and if investors are willing to provide liquidity for purchase transactions made to borrowers who do not fit into the traditional credit box, it makes sense that lenders will step in to facilitate. But can they do it in a way that keeps investors and borrowers safe? We think they can and the most successful lenders will be those that take the required steps to make lending to these borrowers sustainable and beneficial to all parties. In this article, we’ll talk about some of the ways they can do this. But first, a look at the current state of the non-QM industry.

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QM lending, ready for launch Much of the cheering we’ve been hearing for non-QM lending seems to be coming from the lenders who are currently engaged in the market, and there are plenty of them. But they are not the only ones who are excited.

In its U.S. Residential Mortgage Review and 2018 Outlook, rating agency DBRS said lenders are exhibiting fewer concerns about non-QM originations, primarily because compliance concerns have eased. DBRS says it’s seeing more standardization in the representation and warranties and that’s giving originators more confidence, which is likely to lead them to widen the credit box in 2018. S&P Global Ratings said something similar last December, when the company projected that the non-QM market would double, or even triple, in 2018. The rating agency also told HousingWire that the new products hitting the market today bear little resemblance to “the non-prime or sub-prime products that proliferated before the Great Recession.” Apparently, many lenders agree with this, as we’re seeing more lenders jumping into this market. Just over the last few months, we’ve read reports about: l Carrington Mortgage Services is now offering a non-qualified mortgage program, which President Ray Brousseau calls a natural progression from its decision four years ago to concentrate on borrowers with credit scores under 640. l Skyline Home Loans, a Calabasas, Calif.-based nonbank lender controlled by industry veteran Bill Dallas, has branched out into the non-

qualified mortgage market and recently attracted the attention of Finance of America, a Blackstone company, which bought certain of its assets in late March. Finance of America also bought certain assets of nonprime wholesale residential lender Citadel Servicing Corporation, which recently began offering a non-QM Interest Only (IO) mortgage loan program. Priority Financial Network (PFN), a company that offers a full suite of loan programs, including non-QM and special purpose products, has expanded into wholesale lending with the launch of Priority Wholesale Lending. Angel Oak Capital Advisors has recruited Namit Sinha as Head of Mortgage Strategies, where he will focus on managing non-qualified mortgage investments for the company. Nations Direct Mortgage has hired Rey Maninang as Executive Vice President of Production, where he will focus, in part, on expanding the firm’s footprint for loan programs that include non-QM products. Nations Direct Mortgage is solely focused on wholesale and correspondent partnerships with brokers and bankers. Finally, IMF Pubs recently reported that former Impac Mortgage President Bill Ashmore is trying to

raise money for a new venture that will focus on loans that do not meet the qualified mortgage test. We expect to see more conventional lenders moving into the non-QM space over the course of the year. As they do, they will have to deal with the increased risks these deals carry with them. While no one is comparing the new non-QM loan products of today with the subprime loans of the past, but only the foolish would ignore the fact that they are more risky than conventional loans. The companies most willing to accept that risk Most of the companies that we’re seeing move into the nonQM space are wholesale lenders. This makes sense as the brokers that originate these loans have ties to the local communities and easy access to borrowers who have been denied conforming loans.

on-QM Lending

ep it safe?

By Eric Wilson

their reputations should the market turn. Then, there is the technology element. In 2016, Lender Price came to market with Product & Pricing (PPE) technology to allow wholesale and correspondent lenders, as well as banks and credit unions, to manage product pricing for all mortgage types, including non-QM. Today, the company has pivoted its offering into both PPE and a Point of Sale (POS) technology. This could allow lenders to originate non-QM loans faster. To some, this all looks very reminiscent of the days before the financial crash. All of the pieces are in place. History could repeat itself. Current non-QM market participants say it wonâ&#x20AC;&#x2122;t and we agree, as long as

the following considerations are taken to heart. Keeping the non-QM market safe Conforming mortgage market guidelines define what the government sponsored enterprises will invest in, but they do not necessarily encompass all potentially good loans. Non-QM lenders realize this and so they are developing continued on page 70

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Brokers can work with nonQM lenders to provide an alternative to borrowers that they had been forced to turn away in the past. This will allow the brokers to build their businesses and grow with borrowers that they could not previously serve. We saw this in the run up before the crash, which didnâ&#x20AC;&#x2122;t end well for the brokers. A number of wholesale lenders have found it possible to go to the capital markets to get liquidity for their non-QM lending activities. Late last year, Angel Oak Companies brought its third non-QM transaction to market. The senior tranche was oversubscribed and received AAA ratings from both Fitch and DBRS. In late March, the company announced that it had surpassed $1.1 billion in non-QM originations during 2017, the highest volume in its history. Wholesale lenders that can attract both capital markets investors for their non-QM securities and brokers to originate the loans will do well because they can serve borrowers without having to engage in mass marketing that could serve to damage

n National Mortgage Professional Magazine n JUNE 2018

Do Listing Agents By Brian Sacks

s Sell Homes Too? ou finally get that Realtor to speak with you and the first thing that comes out of their mouth is the infamous, “I’m just a listing agent.” If you are a seasoned Originator or just someone starting out in the industry, it’s likely that you have heard this comment. Many years ago, when I first heard this from a Realtor, I didn’t realize that this was just a script they utilize to avoid being pestered by Loan Officers. But let’s dig a bit deeper and I will share with you how to respond to this comment and turn this agent into a loyal asset.

I reviewed my last 100 loans and here’s what I found To prepare for this article, I actually reviewed my last 100 transactions to see who the referring Realtors were. By the way, I hope you keep these records too because it’s always important to know where your business is coming from. We tend to ignore and take for granted those agents who refer us regularly and just focus on adding new partners which is a big mistake. Keeping records and reviewing them allows you to focus your efforts properly. What I found when I checked my last 100 loans was that 21 of them came from agents I had met because they were the listing agents on my transaction. Think about that for a minute. You could be increasing your production 21 percent or more per year by what I am going to share in this article. There are a number of ways to handle the “I’m just a listing agent” objection when you hear it On the surface, the comment itself is a silly one. Don’t most people selling their homes also look to buy either a bigger home or downsize their existing homes. You could simply say that you would be happy to qualify their sellers so they are pre-approved before they even list their home for sale. This way they can be comfortable moving forward in the home sale process and know that they will have a loan in place when their home is sold. I once met with an agent who

used the “I’m just a listing agent” excuse and I replied, “Wow, I am so sorry to hear that because I wanted to share a pre-approved buyer I am working with who is in need of a Realtor. But I guess since you are just a listing agent, you won’t be able to work with them right?” The look on this agent’s face was truly priceless, and yes, I did give him the referral and he did sell them a home. What can you do to assist with their listings? There are a number of ways you can assist Realtors with their listings and help them obtaining listings. For example, there are lists of FSBOs and expired listings available that you could provide them on a daily basis. This will help them get more listings and help you get more buyers. By sponsoring and promoting broker open houses, the agents expose their listings to other agents in their office and other offices in the area. The benefit to you is that being there allows you to meet other agents in a nonthreatening and casual environment. Provide a Web site and social media tools There are a number of programs on the market that allow you to provide a Web site and mobile site for the agent’s listings that is branded with the agent’s information and yours. There are also a number of home search apps on the market that can also be co-branded and allow you and the agent to get the leads that are generated. Special programs and expertise Do you offer any special programs or do you have any specific area of expertise that can help your agents sell the homes faster? As an example, the company I work for, HomeBridge Financial Services, has special expertise with condominium projects and approvals. There are several challenging condominium projects in the Baltimore area that we have been able to get approved because of this, while some other lenders in the area aren’t able to lend in these

projects. I did a bit of research and found that three agents controlled most of the listings in these buildings that are all located very close to each other. I contacted them and explained that we are able to lend in these projects and they have since referred me to the agents and buyers who are purchasing their listings. Do you have any special programs that will help them sell their listings faster? This is very similar to expertise, but let me share another example with you: There are a number of agents who specialize in working with bank-owned homes and foreclosures. These homes are often not in great shape and with sellers who will not make any repairs. This obviously limits the amount of buyers who might buy the home since FHA and VA financing would not work. That’s where you come in if you offer renovation loans. Contact these agents and let them know about your expertise in renovation programs. Let them know that they can now offer FHA, VA and conventional financing on their listings and that it will allow them to sell that listing faster. I marketed to these listing agents and they now hand prospective buyers and their agents my contact information. They tell agents who sell their listings that they strongly suggest using me for the mortgage since the home will likely come back with repairs and their seller will not make those repairs. By the way, this doesn’t only apply to bank-owned homes. There are many homes on the market that need work with sellers who simply do not have enough equity or cash to make them.

How can you impress them when they are the listing agent? Every loan you originate provides you with the opportunity to speak with the listing agent. In my Top Originator Mastermind Program (TopOriginatorMastermind.com/M MM), I recently provided our community with the entire sequence of how to turn listing agents into referral sources. Here’s what this process looks like when a new loan is turned in: 1. An e-mail is sent to the listing agent introducing us and letting them know we have taken the application on their new listing. 2. A letter is sent to them stating we have taken the application and a packet of information on programs and tools we offer. 3. Every week, the listing agent is sent a status update. 4. When the loan closes, the listing agent is called and wished good luck at the closing and also tells them how much we enjoyed working with them and suggesting a meeting. A package is sent to them with our programs and tools and again thanking them for working with us. We also suggest in this letter that they call to schedule a meeting with us to see if it would make sense to work together going forward. The bottom line Don’t accept the “I’m just a listing agent” excuse. You now have many reasons to pursue a relationship with these Realtors and you should! Think about what increasing your production 21 percent in the next 90 days would look like in your business.

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. For your free four-part video series on “How to Finally Close More Loans, Make More Money and Have the Time to Enjoy Life,” visit TopOriginatorMastermind.com/MMM, and learn more about the Top Originator Mastermind at TopOriginatorMastermind.com.

the rise of non-qm lending

continued from page 67

“We expect to see more conventional lenders moving into the non-QM space over the course of the year. As they do, they will have to deal with the increased risks these deals carry with them.” and deploying new loan programs to serve this market. There is still risk here, but it can be managed with:

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Careful underwriting Over the past decade or so, many Loan Originators have been trained to originate refinance loans and conforming purchase money loans relatively quickly. TRID concerns aside, lenders have become expert at moving deals through their pipelines swiftly. That won’t be possible with non-QM loans. Each of the loans needs to be underwritten carefully and most of the wholesale lenders who have spoken about their process publicly have promised to pay close attention to every non-QM loan they write. Seeing too much automation make its way into the market could be a danger sign. Appropriate technology Technology will still be vitally important, however, especially tools that make it easier to perform quality control and compliance checks on these deals. Product & Pricing Engines and POS tools are fine as they speed up the application process and get borrowers into the pipeline quickly, but beyond that lenders are urged to take care. It’s important to have solid technology for every part of the loan origination process, but lenders that apply algorithms to non-QM loan underwriting are opening themselves up to risk. Better to fall back upon partners that can help give each application the careful attention it requires. The right partners We are already engaging with more non-QM lenders because the additional work involved in underwriting and processing

these deals can slow down their internal teams, leading them to outsource more of the work to trusted partners. But choosing the right partners is very important, especially for these deals. Effective due diligence must be employed to determine the prospective partner’s experience level, technology level and staff expertise. The right partner can make all the difference in this part of the business. A regulatory sandbox Finally, for this business to grow sustainably, lenders must have confidence that the loans they are making will not expose them to non-compliance risk. One way to do this is with an regulatory sandbox, which allows businesses to test innovative products and processes without risk of regulatory consequences. The Mortgage Bankers Association (MBA) recently called upon federal regulators to establish such a tool to encourage innovation by mortgage lenders, especially in the non-QM space. Ultimately, it will fall to each lender to ensure the quality of the loans they originate. Most will find this much easier to accomplish with a good regulatory technology (regtech) QA/QC platform. We have a great deal of experience developing and deploying such systems and know what must be included. From our perspective, such a platform must include: l A zero defect target stance that utilizes a three-step process n Rules driven deficiency collation n Identification of root-cause to … n Drive actionable intelligence with feedback loop and trend analysis In our case, we built the

technology into our MMaaS (Mortgage Management as a Solution) offering, which is in use by four of the top 25 U.S. banks for underwriting audits, pre-funding reviews and postclosing audits. Such a system could also be deployed as a standalone regtech platform. We have benchmarked the results that such as platform can provide by measuring our own system and found: l Fourteen percent improvement in quality of underwriting of mortgage loans l Eighty-five percent reduction in mortgage post-closing errors l Thirty-seven percent reduction in residential mortgage closing deficiency l Risk analysis of closed mortgage loans using DTI

percentage and other loan factors Anyone who lived through the financial crash will likely view non-QM loans as potentially dangerous, and there is certainly risk to contend with in these products. But good lending practices can keep everyone safe. As the market for these products grows over the remainder of this year, we expect to see most lenders adopt such practices. Those that do so will achieve growth even in this challenging market. 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.

Eric Wilson, a mortgage industry veteran with more than 20 years of experience, serves as Senior Vice President, Business Leader-Mortgage for SLK Global. He can be reached by e-mail at Eric.Wilson@SLKGroup.com.

post-crisis housing issues

Freddie Mac. Another instance where the CFPB “Submit a Complaint” portal is being used is to assist homeowners who, due to hardship experienced from the 2017 hurricanes, were eligible for a forbearance of mortgage payments. It was not clear how these mortgage payments would need to be paid back and lenders have either required payment in full or require a new mortgage delinquency to justify a modification. In both issues noted above, the accuracy and probable downgrading of consumer credit is at stake. Accurate and good credit is the central factor in mortgage decisions and for building consumer credit that ultimately supports our economy. “Collecting, investigating, and responding to consumer complaints” is one of the six statutory “primary functions” of the Bureau. I ask that you keep

continued from page 38

the same data fields in the Consumer Complaint Database, supplement observations from consumer complaints with observations of company responses to complaints, and maintain the same level of access to complaint information available to external stakeholders such as financial institutions and the public. Having the “Submit a Complaint” portal available to assist consumers with needed corrections while providing transparency on both sides of a problem is a highly important service to consumers. Respectfully, Pamela M. Marron Licensed Loan Originator (NMLS#: 246438) Disclaimer: While I am a member of the HUD Housing Counseling Federal Advisory Committee, the opinions noted are those of the authors only.

Pam Marron (NMLS#: 246438) is Senior Loan Originator with Innovative Mortgage Services Inc. (NMLS#: 250769) in Tampa Bay, Fla. She may be reached by phone at (727) 3758986, e-mail PMarron@InnovativeMortgage.onmicrosoft.com or visit HousingCrisisStories.com, CloseWithPam.com or 8Problems.com.

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Call Ron Vaimberg, nmpU President & Head Coach, at 888-979-NMPU (6678), Ext. 801 or E-mail RonV@MortgageNewsNetwork.com for more information on how nmpU can increase Originator, AE and Manager Performance!

MBA’s Mortgage Action Alliance A Message From MAA Chairman Gene M. Lugat continued on page 84

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Last month, the Mortgage Action Alliance (MAA) held its annual Action Week, a week-long event dedicated to helping real estate finance professionals learn how to become more engaged in political advocacy that supports our industry. Forty-nine companies and 20 state and local mortgage banking associations ran concurrent MAA enrollment campaigns, adding more than 4,000 new MAA members and closing in on 3,000 downloads of the MAA app. Current MAA membership has now exceeded the 27,000 mark, representing a 76 percent increase since the beginning of the 2017-2018 election cycle. This Spring demonstrated the importance of staying engaged through MAA. Last month, President Trump signed into law S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, which passed the House by a vote of 258-159 after vigorous advocacy by MAA members. Another call to action helped get the legislation through the Senate earlier in the year. The legislation contains a number of provisions that directly impact MBA members’ businesses, such as: l SAFE Act amendments to provide 120 days of transitional authority for MLOs to originate when leaving a depository to join a sponsoring nonbank (or when crossing state lines); l Applying TILA consumer protections to PACE/energy efficiency mortgage products; l Added safeguards to protect veterans, surviving spouses and service members who utilize the VA Home Loan program’s IRRRL refinancing product; and l An improved, more workable regulatory regime for the eligibility of High Volatility Commercial Real Estate (HVCRE) construction loans. Thank you to those who took action on these important issues! Your advocacy makes a difference. With 27,000-plus active MAA members and counting, remember, the larger the group, the louder the voice! One of the most effective and easiest ways to take action is with the MAA app, designed to give you the power to stand up for the real estate finance industry anywhere, anytime. On the app, you can: l Join MAA; l Receive updates on bills affecting the real estate finance industry; l Let your elected officials know how those bills will impact you directly; l Research bills that MBA is watching; l Find contact information for your members of Congress; and l Learn about MORPAC, MBA’s Political Action Committee. To download the app, visit MBA.org/MAAapp or search for “Mortgage Action Alliance” in the App Store or Google Play. MAA is working hard to make it easy to take action–and your elected officials need to hear from you. We like to say that MBA is the “One Voice” of the real estate finance industry. MAA amplifies that voice through MAA members contacting their elected officials to help them understand how legislation can impact local businesses in their communities. I encourage everyone in the mortgage industry to join MAA if you haven’t already and stay engaged. Your voice matters. Gene M. Lugat is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. Gene is executive vice president, national industry and political relations for PrimeLending continued on page 80Inc.

heard on the street named Head of Operations. l The Mortgage Bankers Association (MBA) has announced that Erin Barry has joined MBA as Associate Vice President of Legislative Affairs, where she will be responsible for representing MBA’s legislative and policy issues on Capitol Hill, with a primary focus on Democratic members of the U.S. Senate. Barry joins the MBA from Capitol Hill, where she has spent her entire professional career. l Top Vine Mortgage Services LLC has added Sheila Fourman as a Loan Officer to their team. Fourman joins Top Vine with nearly 30 years of real estate and mortgage industry experience. l Impac Mortgage Holdings has announced that Chief Financial Officer Todd Taylor is stepping down to pursue other professional opportunities. Brian Kuelbs has been appointed Executive Vice President and Chief Financial Officer. l Mortgage Guaranty Insurance Corporation (MGIC), the principal subsidiary of MGIC Investment Corporation, has announced that the company has promoted Luis Contreras to Vice President, National Account Manager. l NewDay USA has named Gary Ort, former President of Texas Capital Bank’s Mortgage Finance Division, to its Board of Advisors. Ort has more than 45 years of financial services experience, including executive, senior management and leadership positions in mortgage banking production, servicing and operations. l Planet Home Lending has announced that Heidi L. Snyder has joined the company as an Area Sales Manager. Planet Home Lending has also announced the opening of a new branch in Boulder, Colo. Longtime mortgage industry consultants Todd Adelman, Blue Hessner, Dirk Walker and Brian Weinberg will manage the branch, joined by Loan Officer Adam Leeger and Loan Officer Assistants Therese Palmer and Rebecca Tiarks. l Mortgage Guaranty

continued from page 39

Insurance Corporation (MGIC) has announced the hiring of Greg Korn as Sales Manager for New England. The Conference of State Bank Supervisors (CSBS) has announced the election of Charlotte Corley, Commissioner of the Mississippi Department of Banking and Consumer Finance, as the new Chair of the CSBS Board of Directors. On Q Financial has named former Apple Senior Business Leader Nick Suwanvichit its new Vice President of Strategy and Business Development. Suwanvichit has more than 17 years of leadership and business development experience. LBA Ware has announced the addition of Diana Sheffer as a Solutions Consultant to support the company’s sales and product implementation efforts. Visionet Systems has announced that the company has hired John A. Spencer, a veteran with more than 30 years of experience in the mortgage industry, as Vice President of Consumer Lending. Class Appraisal has announced the addition of Scot Rose to its executive leadership team at Class as its Chief Innovation Officer. GSF Mortgage Corporation has announced the addition of Frank Dean as Regional Manager in the Columbus, Ohio region. Dean has more than 25 years of experience providing top-quality service to his customers, with an extensive client-referral base that he is looking forward bringing to the GSF brand.

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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The Marketing Tactic that Yields 4,300 Percent ROI Explained By Rosalie Berg

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here is one marketing tactic that yields an average 4,300 percent return-oninvestment (ROI), according to the Direct Marketing Association. By all accounts, that’s a great returnon-investment. This tactic has conversion rates that are three times higher than social media, according to McKinsey & Company, a global management consulting firm. While there are plenty of ways to market your business to existing and prospective customers, absolutely nothing beats this form of marketing: Email marketing. Leading marketers agree that it is the most effective tool in their arsenal, and as you can see, the numbers back them up. The best part about e-mail marketing is that it’s not expensive and can be done regularly. Yet, many companies I speak with either don’t do it at all or they are doing it incorrectly. There are three rules that, when followed, will help anyone improve the effectiveness of their e-mail marketing.

Rule #1: Engage recipients I recently spoke with a CEO who told me he’s been using e-mail marketing for many months and is not seeing results. He thought e-mail marketing was not very effective. The conversation felt like the movie “Groundhog Day” to me, because I have had this same discussion more times than I can remember. I know so many companies that do not get great results from e-mail marketing and wonder what they’re doing incorrectly—or whether e-mail marketing just doesn’t work. The trouble is companies use e-mail marketing to try to increase sales, but few people like being sold to. Once someone has the feeling they are getting a sales pitch, their guard goes up. On the other hand, most people like to engage in conversation, especially when they feel as though they are being educated and respected. And that is one of the keys to a successful e-mail marketing campaign. But educating and offering advice to your contacts is only part of the equation. It’s not just what you say that matters, it’s how you say it. Consider a scenario in which

you receive two e-mails–one from a friend and another from a company. Which e-mail do you want to read first? If you’re like most of us, you’d go for the friend’s e-mail first. After all, we like our friends and want to hear what they have to say. In contrast, we expect the company e-mail to be dry, impersonal and boring. This is something many marketers overlook in e-mail marketing … they send dry and impersonal e-mails that anyone hardly wants to read. In contrast, you can increase engagement by creating e-mails that sound more personal. According to statistics from Experian, personalized e-mails have a nearly 30 percent higher open rate and a 41 percent higher click-through rate than non-personalized mailings. How do you get personal? For starters, you can send the e-mail from an e-mail address with someone’s name. In the body of the e-mail, greet the recipient by name and write a note that sounds like it came from the sender. In other words, write as though your e-mail is intended for one person. You’ll be amazed

how many people will reply to you as if you had sent them a personal note. Be sure to include your photo, too. Including a photo helps people relate to the person who has reached out to them. It will also set you apart from the stream of e-mails coming from faceless overseas spammers. Finally, don’t simply tell recipients what you’re selling. Seek to help them as if they were a close friend. Tell them something they don’t know. And when you mention your products and services, do so in a helpful way. Rule #2: Pay attention to your Subject Line First impressions can make all the difference in the world, and marketing is all about first impressions. When it comes to reaching prospects by e-mail, the first impression is not made when someone opens your email—it’s when they see the Subject Line and wonder, “Should I open it?” You only have a couple of seconds to grab your readers’ attention and interest them enough to open and read your

Rule #3: Be consistent One of the main reasons companies don’t use e-mail marketing is because they think customers won’t appreciate it or they believe they will be accused of sending spam. The fact is, your customers will appreciate your e-mails if they trust you and value what you’re sending them. One way to build trust is to offer your recipients something of

value. The other is to be consistent. Consistent e-mail marketing not only ensures that your contacts remember you, it helps build relationships and increases e-mail open rates. Studies by the Database Marketing Institute found that e-mail open rates are highest when companies send two e-mails per month. When creating a schedule, give careful consideration to when your target audience is most likely to read your e-mails. For example, Friday is usually not a good day because people may have checked out early—whether physically or mentally! The end of the month is not ideal either because many recipients may be busy closing loans. It’s important that you don’t get hung up on worrying whether your e-mail will be read each

time. Average e-mail open rates tend to hover around 20 percent, which is not bad considering that the cost of delivering an e-mail message to 100 people versus 5,000 people is virtually the same. The bottom line here is not to be shy—e-mail away. Due to the competitive nature of the mortgage industry and the cost-effectiveness of e-mail, I cannot think of any business that should not be doing e-mail marketing. If it is a bandwidth issue, there are experts available that can help set up e-mail marketing campaigns and do the writing for you. But whether you get assistance or not, following these three simple rules will significantly impact your results. So venture forth, and witness firsthand the merits of great email marketing!

Rosalie Berg is President of Strategic Vantage, a marketing and public relations agency that specializes in the mortgage and financial services industries. Lenders, technology companies, service providers and start-ups count on Strategic Vantage to publicize their companies, write content and create their marketing materials. She may be reached by e-mail at RosalieBerg@StrategicVantage.com or visit StrategicVantage.com.

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the best open rates. We also include keywords that will make the e-mail searchable later. Of course, you should not constantly use the same words or worse, repeat the same Subject Line for each campaign. Eventually the reader will learn to ignore them. For the same reason, it’s best to avoid words like “Free,” “Reminder” and “Percent Off,” either because people have been conditioned to ignore these words, or because they often end up being filtered by email programs and sent to spam folders. The same goes for using ALL CAPS and exclamation points (!!!) in Subject Lines, which are usually the first e-mails people delete.

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message. So, if you’re going to email prospects via direct e-mail or through an e-mail marketing blast, don’t make an attention-getting Subject Line an afterthought. Your Subject Line should convey a sense of urgency. Including a tight deadline in the Subject Line increases the odds that readers will make your e-mail a priority and respond. If appropriate, use phrases like “Please reply by EOD” or “limited space available.” “Now or never” types of deadlines are often the most successful. Also, keep your Subject Line short. Experts recommend no more than 10 words (or less than 50 characters) in the Subject Line. In a study of 200 million e-mails, the e-mail distribution service MailChimp found that Subject Lines with 28 to 39 characters had the highest click rate. Other studies suggest most people read e-mail on their mobile devices, and the typical Subject Line on a mobile phone is even shorter, often only six to eight words in length. So, it pays to be succinct and “mobile friendly.” One particularly effective strategy we use is to test words and phrases to see which garner

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

calendar of events

JUNE 2018 Wednesday, June 20 NAMB Buzz Nashville Renaissance Nashville Hotel 611 Commerce Street Nashville For more information, visit NAMB.org.

SEPTEMBER 2018 Friday, September 7 UAMP Annual Mortgage Expo Marriott @ City Creek 75 South West Temple Salt Lake City, Utah For more information, visit UAMP.net.

Thursday-Friday, June 21-22 NEXT June Conference Hotel Zaza 2332 Leonard Street Dallas For more information, visit NEXTMortgageConference.com.

Tuesday-Wednesday, September 11-12 MBA’s 2018 Human Resources Symposium Renaissance Arlington Capital View 2850 South Potomac Avenue Arlington, Va. For more information, visit MBA.org.

JULY 2018 Wednesday-Thursday, July 11-12 MBA Presents: CREF Market Intelligence Symposium NYU Global Center 238 Thompson Street New York, N.Y. For more information, visit MBA.org.

Thursday, September 13 NAMB, YMPA and NAPMW Present: NAMB Swarm One Burlington Mall Road Burlington, Mass. For more information, visit NAMB.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.

Sunday-Tuesday, September 23-25 2018 Northeast Conference of Mortgage Brokers & Professionals Harrah’s Resort & Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, visit EventsMBANJ.net.

OCTOBER 2018 Wednesday-Thursday, October 10-11 NYAMB’s 2018 Fall Convention & Trade Show Long Island Marriott 101 James Doolittle Boulevard Uniondale, N.Y. For more information, visit NYAMB.org.

Tuesday-Wednesday, November 27-28 MBA’s Summit On Diversity and Inclusion Capital Hilton 1001 16th Street NW Washington, D.C. For more information, visit MBA.org.

Saturday, October 13 mPowering You: MBA’s Summit for Women in Real Estate Finance Walter E. Washington Convention Center 801 Mount 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.

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.

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

Sunday-Tuesday, October 28-30 2018 NRMLA Annual Meeting & Expo Hilton San Diego Bayfront 1 Park Boulevard San Diego For more information, visit NRMLAOnline.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.

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Sunday-Tuesday, September 16-18 MBA’s 2018 Regulatory Compliance Conference Grand Hyatt Washington 1000 H Street Washington, D.C. For more information, visit MBA.org.

NOVEMBER 2018 Monday-Wednesday, November 12-14 MBA’s 2018 Accounting and Financial Management Conference Hyatt Regency Orlando 9801 International Drive Orlando, Fla. For more information, visit MBA.org.

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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.

Sunday-Tuesday, September 23-25 MBA’s 2018 Risk Management, QA & Fraud Prevention Forum JW Marriott Los Angeles L.A. LIVE 900 West Olympic Boulevard Los Angeles For more information, visit MBA.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

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

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

that donâ&#x20AC;&#x2122;t call you back. Program includes all Manuals including QC, MLO Policies and Comp Plans, AML, GLB, Social Media and Web audits, on-line training sessions,

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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

â&#x2014;? â&#x2014;? â&#x2014;? â&#x2014;?

$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 â&#x2014;? 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 â&#x20AC;˘ Trained 3,000 CMHS course grads â&#x20AC;˘ Trained for Depts of HUD, Treasury & more â&#x20AC;˘ 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 â&#x20AC;&#x201C; 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 nationâ&#x20AC;&#x2122;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: â&#x20AC;˘ Free Weekly Hotline â&#x20AC;˘ Access to Subject Matter Experts â&#x20AC;˘ Policies and Procedures â&#x20AC;˘ Webinars *Special Pricing* â&#x20AC;˘ Quality Control â&#x20AC;˘ Exam Readiness â&#x20AC;˘ Licensing â&#x20AC;˘ Legal Reviews

LENDING CRITERIA Âˇ 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. Âˇ Fix & Flip program up to 70%-80% of the Purchase price on all types of properties Âˇ Loan amounts/Terms: $50,000 up to $5,000,000 and loans from 6 months to 10 years. Âˇ LTV: Purchases up to 70%-80% LTV; Refinances up to 60-65% LTV; 2nd Position up to 65% CLTV Âˇ 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

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

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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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WE’RE GROWING! Apply Now At JoinAngelOak.com

Don’tt Gett Left in the Dust D Angel Oak Mortgage Solutions Visit www.Ang gelOakMS.com/NMP orr call 855.631.9943. Grow With the Leader in Non-QM Wholesale and Correspondent Lending. © Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, G GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, V VA, the U.S. government or any federal, state or local governmental body. This is a business-to-business communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualiffyy for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. MS264_0518