National Mortgage Professional Magazine May 2020 by ambizmedia

$15.00 US PER ISSUE

Where Is The Industry Heading Post-Pandemic? MAY 2020 | VOLUME 12, ISSUE 5

NATIONAL MORTGAGE PROFESSIONAL

ITâ&#x20AC;&#x2122;S ALL ABOUT MARKETING

MAY 2020 n National Mortgage Professional Magazine n NationalMortgageProfessional.com

Where Is The Industry Heading Post-Pandemic By Eric C. Peck

t i w k c Be

The

i w k c e B

The

The Beckwith Blog: The Viral Spiral of 2020 By Christine Beckwith

NATIONAL

MORTGAGE

PROFESSIONAL

May 2020 • Volume 12 • Number 5

table of contents A Special Focus on “It’s All About Marketing”

National Mortgage Professional Magazine Presents Mortgage Marketing Roundtable Discussion 2020........................................22 Don’t Pause, Pivot: Leveraging Technology To Stay Connected In A Touchless World By Shakria Hall..............................................................25 Marketing In The Age Of Working Remotely: How To Stay In The Game By Leveraging Tech By Paul Lucido...........................................28

How to Use the Web for Client Credit Help By Pam Marron

Eight Ideas For Marketing In The Age Of Working Remotely By Traci Huntemann-Piatt.................................................................................30

FEATURES

From the Publisher’s Desk: A Message From Publisher & CEO Vincent M. Valvo.................................................................................................4

Recruiting, Training and Mentoring Corner: Pandemic: Developing a Professional Marketing Plan By Dave Hershman.......................8 From the Desk of Beverly Bolnick, CMO-Chief Mommy Officer......................9

The Importance Of Marketing To Minorities And Empowering Women Through Homeownership By Shannon Hunter................................................35 Your Culture Matters: What Kind Of Mortgage Mentor Are You? By Jay Doran.....................................................................................................40 A Clear Look at Transparent Leadership By Kristi Pickering..........................44

COLUMNS News Flash: May 2020.......................................................................................5 Heard on the Street..........................................................................................32

The Mortgage Godfather: Marketing 101 By Ralph LoVuolo Sr.

New to Market..................................................................................................36 NMP Calendar of Events..................................................................................45

Cover image by: alexsl

n National Mortgage Professional Magazine n MAY 2020

The COVID-19 Crisis and Credit Reporting By Terry W. Clemans

MBA’s Mortgage Action Alliance: A Message From MAA Chairman Jeffrey C. Taylor......................................................................17

NationalMortgageProfessional.com

Quicken Loans: Keeping Ahead of the Flattening Curve...............................10

A MESSAGE FROM THE PUBLISHER & CEO VINCENT M. VALVO

MAY 2020

Volume 12 • Number 5 345 North Main St., Suite 313 West Hartford, CT 06117 Phone: (860) 719-1991 www.nationalmortgageprofessional.com

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

To Market, To Market … Because Home Again, Home Again

f there’s one business-related thing this COVID-19 crisis has amply demonstrated, it’s that the mortgage industry is on its own. National and state leaders have issued sweeping demands to allow distressed homeowners to defer payments, but then offer mortgage lenders little help in how to make that happen. There are few rules for the mortgage industry and little insight as to how this will eventually rebound on consumers. However, everyone in the mortgage pipeline is learning that they have to be a scrapper. If you want to make things happen when the world is crazy; if you want to plan what your future will look like not tomorrow, but three or four months from now if you understand that the planning you undertake today will be your deal flow into 2021, then you know that must work hard to adjust your plans, concentrate on connecting with customers, and embrace innovation. In this issue, we talk to mortgage market leaders about their insight on best practices moving forward, and on how loan origination will morph over the shortand long-term. We’re also proud to feature a number of guest articles from some of the best marketers in the business. They share their advice on looking beyond the low-hanging fruit of low-interest refis to make sure you’re prepared to keep your pipeline full when the next wave of homebuyers swells. Our nation is fighting an imposing problem, one that, without question, will reshape our economy and our businesses. But we, in our hearts, are all entrepreneurs–and in that word, lies the characteristics that will take us through: Confidence, creativity, courage, adaptability and perseverance. We will stand better able to safeguard our businesses, income and standing as the resource to fulfill homeowners’ financial dreams by preparing now for the challenges still to come. It’s all going to be part of the message we send, all part of telling our stories and bringing those who are unsure into the ambit of our expertise. To market, we go. To make sure that people can get home again. Sincerely,

STAFF Vincent M. Valvo CEO, Publisher & Editor vvalvo@ambizmedia.com Keith Griffin Managing Editor kgriffin@ambizmedia.com Eric C. Peck Senior Editor ericp@ambizmedia.com Beverly Bolnick Associate Publisher bbolnick@ambizmedia.com Andrew Berman Head of Engagement and Outreach andrew@ambizmedia.com Jaclyn Leitermann Client Success Coordinator jaclynl@ambizmedia.com _______________________________ Joel Berman Founding Publisher joel@ambizmedia.com _______________________________

National Mortgage Professional magazine is a publication of American Business Media LLC

Stacy Murray Graphic Design Manager smurray@ambizmedia.com Navindra Persaud Director of Online Content npersaud@ambizmedia.com Alison Valvo Interactive Design Director avalvo@ambizmedia.com Melissa Pianin Marketing & Events Associate mpianin@ambizmedia.com

Vincent M. Valvo, Publisher & CEO American Business Media VValvo@AmBizMedia.com

Subscriptions

To receive subscription information, please call 860.719.1991; e-mail orders@mortgagenewsnetwork.com or visit www.nationalmortgageprofessional.com. Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of American Business Media LLC, or the officers or members of any trade association that National Mortgage Professional Magazine is designated as their official publication. Participation in any trade association that designates National Mortgage Professional Magazine as their official publication, events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by American Business Media LLC, or any of the trade associations that designate National Mortgage Professional Magazine as their official publication.. National Mortgage Professional Magazine and any trade association that designates National Mortgage Professional Magazine as their official publication 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 American Business Media LLC publications. National Mortgage Professional Magazine and American Business Media LLC reserve the right to edit, reject and/or postpone the publication of any articles, information or data. National Mortgage Professional Magazine is a publication of American Business Media LLC Copyright © 2020 American Business Media LLC

Billy Valvo User Experience Designer bvalvo@ambizmedia.com Donald Frommeyer Chairman, Originator Connect Network dfrommeyer@ambizmedia.com

NMP NEWSFLASH y MAY 2020 y NMP NEWSFLASH y MAY 2020 y NMP NEWSFLASH y MAY 2020 y NMP NEW

The Federal Housing Finance Agency has approved the purchase of certain single-family mortgages in forbearance. To be eligible, the loans must meet specific criteria by Fannie Mae and Freddie Mac. The move has been made to help mortgage lenders and homeowners who have been impacted by the COVID-19 crisis. “We are focused on keeping the mortgage market working for current and future homeowners during these challenging times,” said FHFA Director Mark Calabria. “Purchases of these previously ineligible loans will help provide liquidity to mortgage markets and allow originators to keep lending.” As a result of the pandemic, borrowers have sought payment forbearance shortly after closing on their single-family loan and before the lender could deliver the mortgage loan to the Enterprises. Mortgage loans that are in forbearance or delinquent are ineligible for delivery under Enterprise requirements. The FHFA’s move was made in order to lift that restriction for a limited period of time and only for mortgages meeting certain eligibility criteria. Eligible loans will also be priced to mitigate the heightened risk of loss to the Enterprises from these loans, according to the release.

After a drop in mid-March as the COVID-19 pandemic gripped the nation, a new Zillow analysis has shown that renewed interest in the housing market is picking up. Page views on for-sale listings on Zillow and requests to be connected to a Zillow premier agent have ticked up in April, and both are higher than they were a year ago. Purchase mortgage applications, while still down 35% from a year earlier, are stabilizing. With this data taken together, this suggests more buyers are considering a home purchase and agents, sellers and buyers are becoming more comfortable using virtual technology during the homebuying process, while practicing social distancing. In early March, daily web traffic on Zillow—measured by page views on for-sale listings using a seven-day trailing average—was trending somewhat higher than on corresponding days a year earlier. The trendline took a turn after March 11, dropping to as much as 19% below 2019 levels for the seven days ending March 22. But traffic has since picked up, outpacing or remaining just a few percentage points behind 2019 levels through early April. An additional home shopping behavior signal is the rate at which Zillow visitors request to connect with a real estate agent. While online requests dropped

steeply in mid-March, they have since bounced back. As of April 15, online connection requests were higher than they were a year ago, due in part to increased video tour connections offered. “The uptick in people browsing for-sale listings combined with high-intent requests to be connected with an agent reveals the resilience of Americans’ interest in shopping for homes on Zillow,” said Zillow economist Jeff Tucker. “These are encouraging signals and time will tell if this interest will turn into more offers to buy and transactions. The coronavirus pandemic has already cost an unprecedented number of people their jobs, which will force many to put plans for a home purchase on hold. Time will tell whether areas of the country with sharper increases in homebuyer interest see quicker economic recoveries, if consumers are feeling confident enough to consider a big purchase like a new home.”

Cash-Out Refis Become Harder To Secure

In harsh times such as these, homeowners are usually able to find comfort in a cash-out refinance that replaces their loan with a new one at a larger amount than the current loan balance. However, a Bankrate report reveals that with unemployment rates climbing across the country, lenders are becoming more

hesitant and implementing stricter requirements for borrowers seeking the cash-out option. “Cash-out refinances reached a 10-year high in the fourth quarter of 2019, the latest figures available, according to Black Knight. Homeowners drew more than $41 billion in equity out of their homes in the quarter,” according to the report. “The surge of refinance applications has overwhelmed some mortgage lenders. But the backup appears to be slowly easing as lenders adapt to new ways of doing businesses under stay-at-home restrictions.” If you have already decided to enter forbearance, you will not be eligible to refinance your loan. While the cash-out option is there, it can also come with a number of caveats that may steer homeowners in another direction. In addition the time it takes for a cash-out refinance, or any refinance for that matter, to close is going to take much longer. Borrowers simply may not have the time to wait if they are in a pinch.

JPMorgan Temporarily Steps Away From HELOCs To Focus On Refis

JPMorgan Chase is focusing its efforts on the tsunami of refinance offers that have flooded the market. To do so, the bank will be stepping away from home equity line of credit applications due to economic uncertainty.

n National Mortgage Professional Magazine n MAY 2020

Zillow Finds Americans Adapting To Homebuying In The ‘New Norm’

NationalMortgageProfessional.com

GSEs To Purchase Qualified Loans In Forbearance

NMP NEWS FLASH continued from previous page

“This move will free up employees to focus on the wave of refinancing applications the bank has received since mortgage rates dropped to near record lows late last month, the bank said. JPMorgan already moved some of its HELOC staff over to handle refinancings as well,” according to The Real Deal. “New customers can pull equity from their properties with a cashout refinancing, which essentially replaces a mortgage with a new one worth more than a given property.” This is yet another change that the bank has made on the lending side, after tightening its mortgage standards to now require borrowers to have a minimum credit score of 700 and a 20 percent downpayment.

financial institutions to report data about mortgage loan applications, originations and their purchases. The data serve HMDA’s purposes, which are to help determine whether financial institutions are serving the housing needs of their communities, to assist public officials in distributing publicsector investment so as to attract private investment to areas where it is needed, and to assist in identifying possible discriminatory lending patterns and enforcing anti-discrimination statutes.

Veterans United Foundation Commits $1 Million To COVID-19 Relief

CFPB Issues Final Rule Raising Coverage Thresholds Under HMDA

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

The Consumer Financial Protection Bureau has issued a final rule raising the loan-volume coverage thresholds for financial institutions reporting data under the Home Mortgage Reporting Act (HMDA). The final rule, amending Regulation C, increases the permanent threshold for collecting and reporting data about closedend mortgage loans from 25 to 100 loans effective July 1, 2020. The final rule will also amend Regulation C to increase the permanent threshold for collecting and reporting data about openend lines of credit from 100 to 200, effective Jan. 1, 2022, when the current temporary threshold of 500 of open-end lines of credit expires. In October 2019, the CFPB extended the temporary open-end threshold until Jan. 1, 2022. Absent today’s final rule, the open-end threshold would have reverted to 100 open-end lines of credit upon the expiration of the temporary threshold. HMDA and its implementing regulation require certain

Veterans United Foundation, the philanthropic arm of Veterans United Home Loans, has announced that it is pledging $1 million to assist with COVID-19 relief in communities across the country. “The heart of our foundation’s mission is enhancing lives,” said Amanda Andrade, chief people officer at Veterans United Home Loans. “Our employees are dedicated to giving back and providing relief efforts to the communities we call home during this difficult time.” The funds will be used to purchase critical supplies, such as masks for healthcare workers and will also provide emergency relief to organizations and individuals impacted by the pandemic. Veterans United Foundation is funded solely by the employees of Veterans United Home Loans and its affiliated companies. More than 90% of Veterans United employees donate at least 1% of their salaries to fund the foundation. Since its creation in 2011, Veterans United employees have donated more than $51 million.

Hispanic Homeownership Rate Rises For Fifth Straight Year

The National Association of Hispanic Real Estate Professionals has released its 2019 State of Hispanic Homeownership Report, produced with contributions from the National Association of Home Builders and Urban Institute. The report found that 2019 marked the fifth consecutive year of increases in the Hispanic homeownership rate: the only demographic with five consecutive years of gains. Strong gains in household income coupled with an overwhelming drive for homeownership are behind the five-year growth pattern, said Gary Acosta, NAHREP co-founder and CEO. “The youthfulness, work ethic and resilience of the Hispanic community will play a critical role in the revitalization of America’s post-pandemic economy.” Areas of the nation where Hispanic homeownership grew the most are Houston and Dallas, Texas; New York/Jersey City; Riverside/San Bernardino, Calif.; and Phoenix, Ariz. In 2018, Hispanics injected $371 billion into the economy through the housing market alone, more than tripling their contributions since 2000. The outlook for continued homeownership growth is compelling with more than 4.9 million Hispanic millennials with the credit characteristics strong enough to qualify for a mortgage.

Mortgage Servicer Call Wait Times Skyrocket

The results for the Mortgage Bankers Association’s Call Volume Survey Results are in, and it shows a huge increase in mortgage servicers call wait times for March. However, the report also shows that there is a turnaround for April. “Call volume started to pick up the week of March 16, when wait times more than doubled from 1.5 minutes to 4.8—leading one out of 10 callers to give up before speaking to a representative,” according to The Real Deal. “Wait times ballooned to 13 minutes the following week, leading as many as one in five callers to hang up before being connected. The average length of calls has also increased by about a minute.” The report showed a decline in call wait times for the week of March 30 to April 5, from 13 minutes to 10.3 minutes. Experts believe that this is not due to a decrease in volume. It is attributed to servicers beginning to adapt to the current state of the industry. MBA senior vice president and chief economist Mike Fratantoni posits the mortgage industry is becoming better at reallocating staff and increasingly utilizing its Web sites to help borrowers.

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 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.

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n MAY 2020

Recruiting, Training and Mentoring Corner

Developing A Professional Marketing Plan

eveloping a solid marketing plan and implementing it consistently over the long run is the key for those who desire success in any sales profession. In this article, we will outline the components of a professional marketing plan and give examples to get you started.

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Identifying Your Goals Every successful sales professional has objectives which guide their actions. For those of you who are not goal-oriented, this aspect of the plan will come as quite a change in the thought process. To achieve maximum performance, every action must have a corresponding achievement. Think about your last visit to a real estate office. What objective did you achieve? The same line of thinking goes for each mailing, rate call or sales presentation. You must go in with a list of possible goals. For example, what are possible goals for a meeting with a real estate agent? Here are a few: • A commitment for future business; • The phone number of a prospective purchaser; • Referral to another real estate agent; • Learning the needs of that agent; • Invitation to a sales meeting; • Another meeting with that agent; and, • Invitation to sit in on an open house with the agent. Developing Actions To Reach Goals The problem with the marketing efforts of most sales professionals is that actions enable us to resemble lemmings. As a matter of fact, any action repeated too many times will make us vulnerable to changing market conditions. The key to the actions is to choose a few which are different from each other and the actions of others. Go where no one is likely to follow. Spend your time giving seminars instead of knocking on doors. Write articles. Become a member of a finance committee. Each action must be specific and have a goal: “Visit four open houses each weekend with a goal of setting up one interview with a top producer for the following week.” Since our goal is to interview with top producers, then we must first identify which agent is holding which house open before we set out each

B Y D AV E H E R S H M A N

weekend. A personal referral to the producer will open us up for a more productive visit. In other words, do not just randomly visit. Arming Yourself With Tools It is most important to identify your available tools before you embark upon implementing the marketing plan. Sometimes, we feel that a tool must resemble the Starship Enterprise, which transports loans to your doorstep. Yet, the most common tools sit around our desk totally ignored, or worse yet, used in such a way that our marketing efforts are undermined. Take a common tool: the telephone. We hear that someone is great on the phone: “He gets a call and always winds up with an appointment.” Others hear the phone ring and hide under the desk. It is obvious which of the two sales professionals has correctly identified and mastered the tool. The latter may also be forced to favor another common tool, the rate sheet--common but usually much less effective than the telephone. In order to have an effective and efficient marketing plan, we must recognize all the tools we have at our disposal. This enables us to identify which tools are more effective and will help us achieve our goals. Identification Of Targets It is the identification of targets which facilitates diversification of a marketing plan. The most common target in our industry consists of real estate agents. If we correctly identify our target as those real estate agents who want to do business based upon relationships, then we realize the inefficacy of other tools such as rate sheets and flyers. What are more specific targets among real estate agents? New agents, top producers, listing agents, new home sales agents, relocation specialists, etc.? What are possible targets outside of the real estate industry? Other loan officers, title companies, financial planners, home improvement companies, large corporations, FSBOs (for sale by owner), home counseling agencies, etc.? The list is endless. We have seen in the past how a concentration on direct refinances worked against longterm diversification. Concentrating too much on one type of agent, geographic area or other target is just

as dangerous. True diversity makes us less susceptible to changing markets. But do not ignore specificity—because the development of a niche is a very effective targeting mechanism.

system to assist real estate agents in tracking the people who visit. This helps the agents and puts you directly in touch with a multitude of leads (including other real estate agents).

Frequency Of Actions No marketing plan will work unless we implement all facets of the plan with consistency. It is important to specifically define the frequency of our actions. This enables us to set monthly, weekly and daily goals. For example, if our goal is to set up three interviews each week and our telephone conversion rate is 25%, then we know that we have to make at least 12 calls weekly. It is in this stage that we define our actions with numerical objectives. The next stage is to make this plan part of the calendar. Most loan officers schedule meetings, loan applications and other appointments in their calendars. Very few schedule marketing time, such as telephone solicitations. In the end, most of us declare that we spend very little time marketing and too much time “in the office.” The first step in breaking this logjam is identifying what must be done. The next step is to commit to the time in your calendar.

3. You are driving in your car two hours each day: You decide to make three marketing calls each day from your car. This results in more than 1,000 extra marketing calls each year. In most of these examples, we connect more than one action to reach another target group more effectively. It is important to note that connecting the actions takes very little extra time, yet the results may be exponential. We must choose our four to six marketing actions in such a way that they will relate to one another.

Putting It Together With Synergy It is easy to see why synergy is more effective than a string of haphazard activities which do not work together, or worse yet, work against one another. The opportunities for synergy in mortgage banking is endless. What one needs is imagination and innovation to make the connections. Let’s take a few examples: 1. You have two separate targets, FSBOs and real estate agents: It is easy to see that you are in a position to recommend your Realtors to the sellers when they are ready to throw in the towel. There is no better way to garner loyalty from a Realtor than by the referral of business. 2. You are visiting open houses: You develop a professional follow-up

Evaluation All the implementation techniques in the world may not bring us closer to our goals unless we take some time to stop and smell the roses. Most of us go through life putting out fire after fire and never relating how a particular day has fit into the overall plan. Did we accomplish what we expected today? Are we closer to our goals? Try this for an exercise: For one week, write down every business activity and the time it took to accomplish that activity. How much time did you spend implementing the marketing plan? How much other time did you spend on activities which are either nonproductive or counter-production with regard to the plan? What were the results of your actions? There are literally thousands of questions to ask regarding implementation of a professional marketing plan. Those who truly want success will question every step of the way because they do not desire to spend one extra minute performing an activity which is not productive. And now we have gone full circle-from goal-setting, to implementation, to evaluation. If you are really looking to differentiate yourself from your competition, try a professional plan of attack.

Senior vice president of sales for Weichert Financial Services, Dave Hershman is a top author in this industry, with seven books published, as well as establishing the OriginationPro Marketing System and the OriginationPro Mortgage School– the online choice for mortgage learning and marketing content. His site is OriginationPro.com and Dave can be reached by e-mail at Dave@HershmanGroup.com.

From the Desk of Beverly Bolnick

CMO

Chief Mommy Officer A Thank You To My Team Members And What I Have Learned From My Kids

MORTGAGE BROKER AND LENDER COMPLIANCE AUDIT, MLO POLICIES and UPDATES

Our fees are less than the big national firms that don’t call you back. Program includes all Manuals including QC, MLO Policies and Comp Plans, AML, GLB, governance documents, and our audit protection plan. Available in all 50 states. We have hands-on experience with

Beverly Bolnick, associate publisher at American Business Media, started her post-grad life working in the music industry and in radio broadcasting. After a quick stint as a high school English teacher, she joined nmp as a marketing assistant in February 2012, and in just three years, worked her way up to become VP of sales and marketing. Outside the office, she is a proud wife and mother of a toddler, a preschooler and a parakeet. She may be reached at BBolnick@AmBizMedia.com.

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.

n National Mortgage Professional Magazine n MAY 2020

Social Media and Web audits, on-line training sessions,

NationalMortgageProfessional.com

This is not a typical Chief Mommy Officer column, but I felt it a necessary one. We are going through unprecedented times right now and stress levels are through the roof. Every single person is dealing with an onslaught of new and difficult hurdles and emotions on a daily basis. Personally, I am working from home while taking care of my four-year-old son and 20-month-old daughter by myself. My husband is an “essential worker” in a hospital, so it is all me— ALL DAY. On top of that, my son has a neurological disorder called Apraxia that requires him to have extensive therapies to help with his speech and motor planning. In total, he has eight therapy sessions a week, all currently being done via Skype or Facetime. Needless to say, I have a lot on my plate. I am not writing this article in a quest for pity or to make it sound as if my life is harder than anyone else. I am writing this purely for context so that I can show my appreciation for all of my team members here at American Business Media and all of my clients and partners who have had the pleasure of attending a Zoom meeting with me and my kids because they are too young to be left alone while mommy is in a meeting. So, they are always a part of it. Thank you all for your patience and understanding. It truly means the world to me. During this time, we have all been given many different hats to wear, and it is easy to get overwhelmed. When I find myself overcome with emotion or struggling just to keep it together, I just think of my kids and how resilient they are. Their lives have been completely turned upside-down, yet they still carry on and play with their toys and work diligently on their art projects. They have their moments as well, but it just amazes me how easily they are able to adapt to such a radical change in lifestyle. We will get through this and we will be stronger for it. Stay healthy and safe!

Quicken Loans Mortgage Services: Keeping Ahead of the Flattening Curve

uring this very unique time in our nation’s history, there are a few things that are top of mind for most Americans: Health, safety, family and finances are some of the biggest. While our frontline heroes are busy making sure we are safe and healthy, the mortgage broker community is increasing the cash flow and the financial well-being for homeowners by helping them refinance into historically low rates. Thank you, brokers!

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Here at QLMS, we are doing our part to be assure that brokers and their clients will have no disruption in the high level of service they have come to expect from us. Some other lenders have been spinning a tale that every lender is acting the same or they have suggested that brokers need to hit pause on their business. That’s not the case. Homeowners need your help now more than ever. If a lender isn’t giving you the service, pricing or products you need–use your superpower as a broker: Choice. Consumers come to you to find them the best deal. Make sure you find a lender that will provide your clients the best price and one that has a process in place to assure a quick closing. Since there are so many different guidelines and such a variety of processes at all the lenders that brokers work with, it’s extremely important that brokers use our proprietary tech tools “GURU” and “The Answer.” There’s no need to filter through pages of e-mails or paperwork to find qualifications for each loan product. GURU is a search engine for mortgage guidelines, and The Answer is like having a virtual underwriter ready to help 24/7/365. After using these tools, you could find out that a client who you didn’t think you could help actually qualifies for one of our

products. This is just one of the ways QLMS is helping brokers reduce their largest expense: Loan fallout. Things are going so smoothly now because QLMS was ready no matter what challenge was presented. We began preparing for the potential effects of the Coronavirus in January, right when the first cases were reported in the country. Many of our team members already had what they needed to work remotely, but we quickly purchased additional equipment so everyone could help our partners, and their clients, no matter where we are. After all, the infrastructure was already built. Quicken Loans has spent the last 35 years building a digital company. None of this is news to the broker community. They noticed that QLMS is a refuge of strength and stability during these challenging times, and more brokers, regional banks and credit unions are choosing to be “Stronger Together.” We have about 150 new partners joining us every week. Those numbers add up quickly. QLMS is now working with 8,000 partners. From those organizations, more than 37,000 loan originators and loan processors assist their clients with help from QLMS. We even improved our partner approval process. You could be working with us in as few as 24 hours after we connect. It’s easy to get distracted with the constant onslaught of news about the virus, and the many ways it’s affecting our lives. But let’s make sure we all stay focused on what really matters: Helping Americans achieve their financial goals and working with the right partners who are best prepared to assist you. QLMS is here for you!

SPONSORED EDITORIAL

Things may have changed, but our focus remains the same: being responsive when our partners need it most.

NationalMortgageProfessional.com

Discover More QLMortgageServices.com NMLS #3030

n National Mortgage Professional Magazine n MAY 2020

Weâ&#x20AC;&#x2122;re here for you so you can be there for them.

A PANEL DISCUSSION:

Where Is The Industry Heading Post-Pandemic? By Eric C. Peck

Credit: spyarm

Paul Anselmo

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Paul Buege

James Cameron

MEET THE PARTICIPANTS Paul Anselmo Founder & CEO, Evolve Mortgage Services Paul Anselmo is the CEO and founder of Evolve Mortgage Services, a provider of outsourced mortgage solutions, and has more than 30 years of experience in the banking and mortgage industries. Previously he served as president, CEO and founder of Mortgage Resource Network, a business process outsourcer and technology provider to the mortgage industry. In 2019, Anselmo was honored as a “Lending Luminary” by the Progress in Lending Association. He can be reached at paul.anselmo@ evolvemortgageservices.com. Paul Buege President & COO, Inlanta Mortgage Paul Buege is president and chief operating officer of Pewaukee, Wis.based Inlanta Mortgage, a mortgage lender licensed in 24 states. Buege has over 35 years of experience in the mortgage business, and is an expert in recruitment, business development and growing sales. Under Buege’s leadership, Inlanta Mortgage has received numerous awards and accolades, including multiple times as a “Top Workplace” in the mortgage industry. He may be reached by e-mail at PaulBuege@Inlanta.com. James Cameron Senior Partner, STRATMOR Group Senior Partner Jim Cameron joined STRATMOR Group in 1999, and specializes in benchmarking and performance measurement, strategic planning and merger and acquisition services. Cameron was instrumental in the development of the industry-

standard benchmarking program known as the MBA and STRATMOR Peer Group Roundtables (PGR) Program. He continues to lead the STRATMOR team that works with the Mortgage Bankers Association in capturing the industry’s most comprehensive and accurate financial and operational performance data. He regularly lends his moderator skills to the MBA and other organizations on such topics as accounting and financial management, mergers and acquisitions strategies, and industry trends. Davis Engles Finance Expert Davis Engles is a finance expert who has worked in the mortgage industry for the past 25 years and enjoys using his experience in educating mortgage professionals. In addition to finance, Engles also has a background in economics. Previous to his career as a mortgage broker, he worked as a financial consultant. Garth Graham Senior Partner, STRATMOR Group Garth Graham has more than 25 years of experience in sales and marketing, ranging from Fortune 500 companies to successful startups, including management of two of the most successful e-commerce platforms. A digital mortgage pioneer, and one of the founders of mortgage.com, Graham had a vision that a digital mortgage could make the process better, faster and more transparent for the consumer. In addition to advising STRATMOR Group clients on developing successful IT strategies and investments, Graham is a much-soughtafter speaker at national conventions.

He is known for his deep understanding of the mortgage industry and the issues facing today’s lenders. Jane Mason Chief Executive Officer, Clarifire Jane Mason is CEO and founder of Clarifire and the original architect behind CLARIFIRE, an application that brings all parties within mortgage servicing operations together onto one secure platform and is a recognized leader in technology solutions for the financial services and mortgage industries. With more than 15 years of experience in financial services technology, Mason started her career in business operations, quickly becoming an executive of an international law firm. After building a software solution for the law firm to handle real estate related cases, Mason entered the market as the original architect of the CLARIFIRE application. As an entrepreneur and innovator, Mason has received numerous awards and accolades for her service in local business and the national mortgage stage. Last year alone, she received the 2019 Women with Vision award from 20/20 Vision for Success Coaching and Mortgage Women Magazine and four other industry awards in leadership and technology. Faith Schwartz President & Owner, Housing Finance System Strategies Faith Schwartz’s performs strategic advisory work on housing, advisory committees, and board membership. She draws from her 30-plus years of leadership in all aspects of the mortgage the industry. She serves on the board of Gateway First Bank and she serves on

the board and as an executive advisor to FormFree, a leading asset, income and employment verification services company that is transforming and streamlining lending. She also serves on the board of RiskSpan, Class Valuation and as an advisor to Funding Shield. Schwartz led the HOPE NOW alliance, industry, government and non-profit coalition through the 2007-2012 housing crisis to reach consumers at risk and develop alternatives to foreclosure. She received a humanitarian award from the Mortgage Bankers Association, HousingWire Vanguard Award and was recognized as one of “Mortgage Banking’s Most Powerful Women” from National Mortgage Professional Magazine. Patrick F. Stone Executive Chairman & Founder, Williston Financial Group Patrick F. Stone is executive chairman and founder of Williston Financial Group, a company he started in 2010. Prior to that, he served as president and chief operating officer of the nation’s largest title insurance company for nine years, chairman and co-CEO of a software company and CEO of a real estate information company. Stone actively serves on several boards, including Inman News, and previously served on the boards of Fidelity National Financial, First American Corporation, FNIS, MicroGeneral, Green Street Advisors, DigitalMap, HomeGain, RedVision and Wystein Capital, as vice-chairman of Metrocities Mortgage and chairman of The Stone Group.

n light of COVID-19, we have begun to live a new norm. Zoom calls have usurped face-to-face meetings. That once palatial corner office has been replaced by a laptop on the dining room table or a Facetime call from the couch. Virtual showings and e-Closings, once the wave of the future, have become processes that must be implemented now in order to buy a home. No matter the case, we are all striving to adapt and survive and learn the new norm for conducting business. As the nation sits under shelter-in-place rules, observing social distancing and doing what it takes to flatten the curve, the mortgage industry is faced with a multitude of issues

Garth Graham

Since the stimulus package was signed into law, what will be the short-term impact of this stimulus package on the mortgage industry? How will loan originators be impacted if at all?

Jane Mason

COVID-19 relief, the industry has to think automation. Servicers will not be able to make it through this crisis by leaning on the same laborious manual processes of the past.

of its own in light of COVID-19. The ripple effect through the economy has shaken the industry, resulting in liquidity issues, layoffs, stress on servicers, and a potential surge in defaults that shrouds the industry deeper into uncertainty. To shed some light on these pertinent topics, we assembled a panel of experts, spanning the industry’s disciplines, to share their expertise and insight as we navigate through these new and unchartered waters. These C-Suite execs and finance experts have endured through past meltdowns and assorted crises and lived to tell about it, and the light they can see at the end of this current COIVD-19 tunnel.

Faith Schwartz

act to ensure access as is needed. It is still unclear what that may look like.

Do you have any historical perspective on this time in the industry? Have mortgage servicers received a similar threat to their livelihood where the government had to step in?

Garth Graham: The obvious and maybe only historical comparison that can be made is the Great Recession that ran generally from December 2007-June 2009. However, there are major differences between the current COVID-19 crisis and that time. For example, borrowers have more equity in their homes and average credit scores are higher. Also, there are far fewer ARM loans now versus 2007, so there is less of a risk of payment shock when rates rise at some point in the future. There are some differences between

n National Mortgage Professional Magazine n MAY 2020

Davis Engles: The short answer is “No.” The impact of the COVID-19 pandemic on the mortgage industry is unprecedented. What happens next depends on the extent to which the federal government steps up to ensure the continued smooth functioning of credit markets and reduce fiscal hardship for homeowners and homebuyers (which obviously have direct effects on the fortunes of the mortgage industry). However, layoffs and consolidation seem inevitable, as in the last housing crisis. Because we’re likely to see the sharpest pullback on the buying side, brokers and service businesses—such as title companies— could be hardest hit, at least in the short-term.

NationalMortgageProfessional.com

massive change that is needed for the industry, much like the post-meltdown of 2008, and that level of change requires a commitment to people, process and technology. So, there is certainly going to mean that MORE Patrick Stone: The stimulus package people are needed—adding staff is Paul Anselmo: From what I know has had an overall positive effect going to be critical, and we are already about the bill, originators are affected by by assuring all businesses that the seeing that. In addition to the daunting the timing of when their loans close and government was going to be proactive staffing challenges, servicers will the delivery of loans to their investors. in addressing the pandemic. For smaller need to continue to supplement their The aggregators have put in income lenders and businesses, it provided staff using outsource providers. The reverifications or attestations that the a backstop and for large lenders challenge here is that many offshore borrower hasn’t requested forbearance with significant business outside of providers in places like India and the prior to purchase. While it is not so the mortgage industry, it provided Philippines have “shelter-in-place” much tied to the bill, the markets have assurance that their borrowers had rules that have prevented them from also caused pause for many originators. some support. fulfilling their obligations. So, servicers For example, Impac took a two-week Let’s assume the Fed comes through face two challenges—ramping up staff time-out, and others have suspended with lending for the mortgage servicing and converting offshore arrangements new application activity as well. One industry. The Mortgage Bankers to onshore providers or covering with bright spot is that many originators will Association (MBA) estimates oneinternal staff. be applying for stimulus loans, which quarter of borrowers could request should help with retaining employees. forbearance for six months or longer, Faith Schwartz: Our hope is this advancing requirements on mortgage pandemic is mostly behind us in six Jane Mason: The stimulus package servicers could exceed $75 billion. months, so I would view it that way. will not impact originators as much as What’s the impact on servicers even If we can weather the storm, figure servicers. Nearly 10 million jobless with the loans? Can it weather what are out how to start making sure we get claims have been filed over the past bound to be huge bureaucratic delays employment back on track, borrowers few weeks alone, so originators will in getting the loans? working again and ensure that families be hard-pressed to find customers are safe, that is the first step. While who want to purchase homes for a Garth Graham: A good first step was the Fed may seem bureaucratic, it has while. From a servicing perspective, the announcement that Ginnie Mae is also operated swiftly when it comes to the stimulus package will help some, going to supply a facility to handle the purchasing mortgage-backed securities but the magnitude of the numbers of principal and interest (P&I advances), and lower rates as needed to provide businesses closing and consumers and the Fed is hopefully going to liquidity. Our hope is the Fed Treasury who are out of work is already taxing step up for the taxes and insurance solution is enough to make sure the even the best of systems. My area of (T&I) portion and for the full payment system can handle unprecedented expertise is in process automation for advances on the agency production. levels of unemployment and dislocation the industry—in particular, workflow This certainly will help from a cash from this pandemic. As such, the shortautomation for servicing and loss flow perspective, and hopefully, help term execution here versus longer term mitigation. So, from my point of view, the servicers remain liquid and able issues are still in play. Servicers do not whether it is the massive amount of to invest in the critical components to get paid when loans are not paying. I current refi requests or the monumental help borrowers who need to address think there will be a very well-defined number of borrower requests for their personal situations. This is a process, if and when the Fed/Treasury

Patrick F. Stone

the COVID-19 crisis and the Great Recession. The COVID-19 situation is much more like the disruption created by a natural disaster such as a hurricane. A hurricane is a major disruption to a localized economy and typically has a shorter-term impact than a recession. So, a lot can be learned by studying borrower behavior in natural disasters and applying that knowledge to predict outcomes from the COVID-19 crisis. Jane Mason: Today, mortgage servicers are at grave risk from a liquidity perspective. There is discussion about creating a federal mortgage servicer funding facility, which would protect millions of lowand moderate-income homeowners from defaulting on their mortgages as a result of unemployment. In the meantime, we are recommending that servicers think hard about whether their technologies will be able to handle the massive volume of forbearance requests that are coming. If they believe their systems are lacking, they should reach out to proven technology partners that have the expertise and the software in production ready to leverage now. What does the employment picture look like in the short- and longterm (say six months from now) in the mortgage industry? What percentage of people lose jobs in the near future? When does hiring bounce back?

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Paul Anselmo: It really depends on how successful the stimulus package is at keeping employment as steady as possible and the ability of employers to bring back employees in all sectors, which obviously affects mortgage origination activity. I believe the government originators should use this low-rate environment to “de-risk” somewhat by refinancing as many loans as possible. This will surely impact the industry in a very positive way. Paul Buege: Within the mortgage industry, as an essential business, we are all mostly hiring in both the servicing and the originations side. Demand has remained strong with a little indication of it slowing down over the next two quarters. I’ve noticed a separation where strong, well-run lenders are on the move advancing their success, while poorly-managed companies are heavily impacted by the ongoing changes experienced in the market. In this separation, there will be opportunities for some well-run companies. Only a very small percentage of lenders are pulling back and letting employees go, but they represent the minority. The strong companies are hiring and will continue to do so over the next couple of quarters. New loan originations should remain stable. We are expecting purchase activity to slow momentarily, while the refinance business will continue to be strong and growing. Employment inside the mortgage industry will mostly be stable or stronger over the year. Davis Engles: In the very short term,

job losses could be less severe than anticipated as homeowners rush to refinance higher-interest loans. Because the Fed isn’t expected to raise rates anytime soon and millions of borrowers do expect cash crunches in the near future, the recent surge in refinancing applications could continue for many months, keeping some mortgage professionals busy. But first mortgage applications have, as expected, fallen off a cliff, and it’s unlikely that things will return to normal here until social distancing measures are relaxed and homebuyers feel confident enough to tour homes and make offers again. Depressing as it is to contemplate, the industry should be—and already is—girding itself for 2020 to be a “Lost Year,” with the worst peak homebuying season since the Great Recession. Patrick Stone: The mortgage industry is still seeing tremendous volume because of refinancing activity. There will be some impact with smaller non-financial lenders, and the resale market will slow down significantly. As for job losses in our industry, there will be some job loss in the parts of the country hit hardest by the virus, but overall, I think the mortgage industry will have significantly less job loss than most of the economy. Is there a silver lining in any of this? Is there something positive that the mortgage industry takes away from all of this, or is it just too far outside the norm? Are there any long-term changes that will come about from this experience? Paul Buege: We are seeing positives already in the swift actions underway. Much was learned in the last financial/ housing crisis, and those lessons are in use today. Borrowers who need the help will find it, and as the economy stabilizes, the mortgage industry is present and ready to help advance the U.S. economy, promoting homeownership through our many services and program offerings. The mortgage industry is better prepared this time around and we will be ready to advance homeownership as the economy begins to quickly bounce back to life. Most of our industry proved that it could go nearly 100 percent virtual with our work force. Our technology platforms proved to be effective in supporting such a dramatic change almost instantly. One area that will advance on the backside of this experience will be the finalization of creating an entirely electronic mortgage experience. The industry is underway with this work, and this crisis has highlighted the importance finishing this process. To make that happen, everyone needs to have their full attention focused on finishing this work, from government agencies–both state and federal– down to the many private enterprises. It’s going to be really great for the consumer and lender experiences when the electronic experience is completed. Davis Engles: We can be certain that this won’t be the last black swan

event to hit the mortgage industry. The hope is that the industry innovates to a place where it’s better prepared for the next shock—for example, by investing in technology to facilitate “virtual” closings and lobbying for the necessary regulatory changes by devising cost-effective ways to work out delinquent loans and keep borrowers facing temporary hardship in their homes, by more effectively modeling borrower risk (perhaps considering factors such as the industries in which they’re employed), and by streamlining underwriting to reduce origination costs. Patrick Stone: The silver lining in this is that the mortgage industry is embracing technological interface to a degree heretofore unseen. All lenders are looking for providers who can engage online and minimize personto-person contact. Short term, we will see the process lengthen as social distancing still impacts appraisals, inspections and closing functions. Long term, we will see the closing cycle shorten dramatically, as all participants are now engaged in meaningful conversations around the online exchange of data and information. The industry’s ability to transfer ownership and provide financing online will become a reality much sooner than expected because of the pandemic. The Mortgage Bankers Association has reported that mortgage applications dropped 29 percent. Where do you think consumer confidence is headed in the next quarter? Is the mortgage industry (along with the greater financial services industry) just going to selfquarantine down to next-to-nothing? Paul Buege: Consumers are rightly anxious and afraid. While the employment of many—blue collar and professional workers alike—is being hurt, many continue to work. We expect about 10 percent to 15 percent of our new mortgage originations business will be temporarily impacted due to unemployment triggered by the Coronavirus outbreak. In the second quarter, we anticipate that purchase business will temporarily soften, with the refinance business remaining positive. Then, as the nation goes back online and we get everyone back to work, it’s going to be a positive business environment with attractive low rates that consumers can take advantage of. James Cameron: The real question is … what will it take for confidence to return and how long will it take? Of course, that is very hard to predict given the unprecedented nature of the current crisis. Today, many economists are predicting either a “V-shaped” or “U-shaped” recovery, which suggests a very quick and deep recession with recovery beginning in Q4 2020 or Q1 2021. In STRATMOR’s view, it comes down to how much permanent damage is caused by the current crisis from business closures and loss of employment. And that speaks to why the Fed, Treasury and Congress have taken actions to “bridge the gap” for employers and individuals to avoid

closures and permanent job loss. To the extent the lower rates, quantitative easing and fiscal stimulus are effective in mitigating permanent damage to the economy, we will have a V-shaped or U-shaped recovery. If not, we will experience a “hockey stick” recovery, marked by a sharp decline in growth and a longer, slower recovery. Jane Mason: As far as consumer confidence is concerned, it may depend on how things play out in the next quarter. But the record number of layoffs and jobless claims we are seeing today will not make Americans think very optimistically about their financial futures. I think the mortgage industry is at great risk of losing control. We have never seen such an onslaught of need from consumers at the same moment. It won’t help if businesses self-quarantine—servicers need to work together and partner with technology and data service providers in order to handle the volume. During the 2008 financial crisis, organizations that embraced technology fared much better than those that did not. Once the COVID-19 pandemic ends, how long before consumers’ habits rebound to January 2020’s levels when mortgages, refis and reverse mortgages couldn’t be written fast enough? When, if ever, will we see a repeat of the fourth quarter of 2019 again? Davis Engles: It’s difficult to make predictions around homebuyers’ behavior without knowing how and when the pandemic ends. If the U.S. sees a single peak of infection this spring and can subsequently deploy widespread testing and contact tracing measures that prevent a second major outbreak later this year, the economy could come roaring back in Q4 2020. By Q1 2021, homebuyers could be back out in full force … but that’s an optimistic scenario. If the pandemic continues into next year, with multiple waves of infection that repeatedly curtail business activity and keep homebuyers off the market, the recovery will be fitful and we could take years to get back to the pre-pandemic status quo. The silver lining in this more pessimistic scenario is—possibly—an upsurge in real estate investment opportunity, with both small-scale and institutional investors purchasing and improving distressed properties. We saw that play out during the last housing crisis and may yet see it again. James Cameron: A repeat of 2019 Q4 is possible, as long as employment and income rebound quickly and rates stay low, but that may take years. While an optimist would support the idea of a V-shaped recovery and a pessimist would predict a “hockey stick” scenario with a slow but steady rebound, the truth may lie somewhere in between. Jane Mason: When we’ll see a repeat of the fourth quarter is anybody’s guess. I am a firm believer in the rebound, but I don’t think it will happen until sometime next year. That is, it will

See WHERE continued on page 43

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n MAY 2020

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

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

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

EASILY SHAREABLE CONTENT With a touch of a button members are able to share charts showing the latest economic and housing data. REAL ESTATE DATA & INSIDER CONTENT Show the housing opportunity in your local market to customers and real estate agents. We will provide you with affordability levels, appreciation, resale volume, new construction, and job growth…updated monthly and easily shared. There is also additional content from Art Cashin, Kiplinger letters, and much more.

What you're getting with your MBS Highway trial l Bond Quotes l Daily Video and Transcript l Interactive Charts l Lock/Float Advice l SMS Updates l Real Time Market News l Cashin's Corner l The Kiplinger Letters l Real Estate Market Data l By The Number$ l MBS TrendTRAKR l Social Share

Try it FREE for 14 days at MBSHighway.com/MNN

MBA’s Mortgage Action Alliance A Message From MAA Chairman Jeffrey C. Taylor

e are living in extraordinary times. The COVID-19 pandemic has become a health and economic crisis of nearly unprecedented proportions. Now, more than ever, the industry needs you and your voice! With that in mind, we encourage everyone to stay involved through the Mortgage Action Alliance (MAA). MAA is free, non-partisan, and the only national grassroots advocacy network that represents the entire real estate finance industry. MAA provides great platforms for you to engage with: • Information: MAA members receive regular policy updates related to our industry, helping us to create and sustain an informed workforce. Information is power. We

can collectively and more effectively advocate for positive change when we all understand the direct impact legislation and regulations can have on our industry. • Action: MAA members receive occasional “Calls to Action” e-mails to guide them in sending letters to their elected officials or federal regulators when there is an important issue at play. Members of Congress make decisions that best serve their home districts and the needs of their constituents. Nobody knows your customers and business better than you. Making regular contact with your lawmakers and staff through MAA will empower you to become a trusted resource and will ensure your lawmakers understand how policy issues affect you, your customers, and the communities you (and they) serve.

In the last few weeks, thousands of MAA members have collectively sent more than 20,000 letters to elected officials on issues impacting lenders, borrowers and the broader economy. This outreach has generated communications to the offices of 98 U.S. senators, 350 U.S. representatives and 50 governors. Join for free by texting “MAA” to 50457. Even with a small fraction of industry professionals behind us, we can combat harmful legislation before most of our colleagues are

even aware that a threat existed. Imagine what we could do with an even bigger voice. Members of Congress and your local officials are inundated by competing voices every day. However, the people they really want to hear from are you— their constituents (and in an important election year, potential voters). The larger the group ... the louder the voice!

Jeffrey C. Taylor is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. Taylor is also cofounder and managing director of Digital Risk, a provider of mortgage risk, compliance and transaction management solutions. He is a frequent guest on financial television networks, such as Fox Business News and CNBC, as well as a source to top tier new outlets 17

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n MAY 2020

h t i w Beck

G The

The Viral Spiral Of 2020 By Christine Beckwith

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

e find ourselves holed up in our homes watching for glimmers of hope while we tackle home barbering and page through grandma’s recipe books for fresh food ideas out of a dwindling pantry. The novelty of a dreamed slower life is quickly wearing thin. There is a silver lining of course … slower pace, more focus and on the right things, and plenty of virtual people connections. It’s hard not to get an “A” in the family department when home base has you at full attention. We will always remember this time for its fragility, fear, stress, complexity, uncertainty and sense of community. We feel like we’ve been here before, but it’s truly all new territory. Time marches on, and it’s a strange and awkward new place we live in when our modern, fast-paced life was the norm just a moment ago. Now, we feel like we are back in the 1950s, with a lack of all amenities, yet housed in a modern world complete with digital connections and luxuries abound. What is this new world? What would you call it? Will this mortgage implosion variety be called “The Viral Spiral of 2020” as I’ve heard quipped? The last chapter is un-written. We watch and wait for the pages to turn, wondering just where we are going? We are in a spiral of sorts, so calling this the “Viral Spiral” is accurate. Are we, I wonder, being twisted around in a tornado that will catapult us to a new safe place where we land on our feet and are left slightly scathed, but alive? Or, are we circling the proverbial bowl, headed down the drain? The answer is both. We are moving in the wrong direction by standing still. Do you see the eerie familiarity to this place we find ourselves in? I know I woke up a few weeks ago and felt like I had been returned to the scene of the crime. Yes, this feels all too familiar. While the game is different, the players are the same. The federal government, the banking and mortgage lending division, trade organizations, loan originators, brokers and entire industry reeling from a calamity of crisis dominos that keep falling, one by one. I wrote in a recent article “In the Heat of Mortgage 911” about our economic crisis. We discussed how, as it evolves and we ebb and flow through various pitfalls and twists and turns, what

“Basically, we’ve been put in a position to ask consumers to stay in their burning buildings on the belief that the fire can be contained out of a desperate act to protect a rapidly declining market. That is a tall order and very dangerous for many lending institutions.”

is emerging are the industry’s strongest leader. There are few things more commendable than seeing these leaders step up. I personally have a new bond with all of them. On top of the pandemic, we find ourselves once again, in the middle of an economic landslide. Obviously, for anyone following the economic mortgage landslide this past month, you already know that pre-pandemic, we were experiencing a growing volatility in the market with an increase from normal volume of approximately 400 percent, flying off the shelves in late February and early march. Then, the margin calls began hitting and the entire industry took its first hit to the knees. That was a stunning new reality and took lenders across our nation a moment to recover. Many were not yet stable on their feet before the COVID-19 pandemic hit them with a second and knock down (not out) punch! It’s recent history, what came next, so I won’t recap it here. Instead, let’s continue to look at a slightly more distant history. After the prior crisis from years past left us swimming for unseen shores in a mess that lasted years, the rate of rescue on the Fed’s part this time was almost a knee jerk action, in some folks opinions, offering the “F-Bomb” solution, as it’s being called now—mortgage forbearance—to consumers as a stimulus to ease the pain of job loss and income reduction and help save them immediate monies. However well-intended, the result was to create a calamity of problems that stand, even today, to threaten the sovereignty of many. In reaction to the Fed again releasing the “F-Bomb” to combat today’s crisis, while its heart may be in the right place, leaders within the banking industry have stepped up this time to advocate. The front line of the lending world has taken to video to warn consumers of the potential credit threat if they exercise a forbearance allowance. Those threats include a balloon payment at the end of a three- to four-month mortgage waiving period, which they have to opt into monthly. The question, of course, centers around those who will take this allowance unnecessarily, as what happened back in 2007 when folks abandoned their mortgage payments in a rap-

Credit: RomoloTavani

idly rising foreclosure environment on the belief that credit reform would come save them, which didn’t happen. Once again, Americans are having a rescue boat brought up to their front doorstep before the tide has even risen to their doorsteps. The video themes that mortgage professionals are currently publishing include messages like “Forbearance is not forgiveness,” are a desperate and vital attempt to educate and warn Americans against this tactic. Undoubtedly, there are those who will manage this properly. Some will use the allowance to help them during the interim and knowingly be prepared to pay back the piledup payments due at the end of the forbearance period. Most economists predict that the larger percentage will not be prepared. Once again, this leaves the mortgage industry as the hall monitors of this economic mess. Basically, we’ve been put in a position to ask consumers to stay in their burning buildings on the belief that the fire can be contained out of a desperate act to protect a rapidly declining market. That is a tall order and very dangerous for many lending institutions. I have always been proud of understanding the need to know economics. As a person who didn’t go to college for business and got to where I am today with over 30 years of in-the-trenches experience and leadership, I learned a hard lesson in 1998. At that time when market woe came crashing down on us, I realized that I needed to know what was going on when the rates went sky high and I couldn’t understand why. It was then that I realized I was an extension of Wall Street. Ever since that time, I have always self-educated from proper sources. Today, I teach a primary core class with all students called “Economic Advisor.” It is clearly a staple today that may only be fully appreciated in times like these. Never before has it been more needed or important to look to those who know economics and can take that foreign language and break it down to us in a way that is consumable and repeatable to our consumers and referral partners. I want to name a few people who have been standouts in this battle, who have stepped up, have consistently been on social media, and are

lobbying for the protection of all of our futures. In the end when we reflect on this time, unlike our last crisis in 2008, we won’t have waited for the dust to settle. No, these heroes are seeing the problems in play and they are in the mix trying to prevent irreversible damage … • Barry Habib, CEO of MBS Highway • Robert D. Broeksmit, CEO & president of the Mortgage Bankers Association • Anthony Casa, chairman of the Association of Independent Mortgage Experts • David H. Stevens, CEO of Mountain Lakes Consulting • Gary Malis, chief strategy and capital markets officer with Paramount Residential Mortgage Group Inc. (PRMG) • Kevin Peranio, chief lending officer with Paramount Residential Mortgage Group Inc. (PRMG) • Casey Crawford, CEO of Movement Mortgage • Joe Panebianco, CEO and president of AnnieMac Home Mortgage • Rob Chrisman of Consultant Capital Markets • Laura Brandao, president of American Financial Resources (AFR) And the list goes on and on of senior leaders, coaches and professionals at the forefront of this pandemic, sharing information, providing great value and leading the pack. It is a beautiful uni-

fied, cross-divisional effort like I have never seen before. I would need all of this magazine to write the list of everyone who has truly stepped up, but I do want to name a short list of fellow coaches that have been truly amazing during this time. These individuals have come together across competitive lines to support one another in never before seen ways: Carl White, Todd Duncan, Khai McBride, Bill Hart, Patrick Palmer, Rene Rodriguez, Dave Savage, Todd Bookspan and Jay Doran. My co-anchor Jason Frazier on the Mortgage X Podcast has been absolutely amazing and has literally been at the helm of social media bringing valuable content to our industry throughout this entire time. And of course, the news stations and magazines have been doing their part like never before. Andrew Berman of National Mortgage Professional magazine and Mortgage News Network, and Clayton Collins of HousingWire have worked tirelessly to bring the most pertinent news to the forefront of our industry. It goes without saying I am missing tons of people who I hold in high regard, but I am truly amazed at the outpouring of leadership at this troubling time. I realize I’ve not addressed the pandemic effect for all of these professionals who are at home, juggling children during this “stay at home” order. All are, I am certain, worried for their families, and the impact the pandemic will have on their own businesses. The realities are hard and stressful. It is times like these when out of the rubble the true heroes emerge and our strength rises from the

deepest parts of our souls to carry us through the storm. It is unclear as I finish this column how the “F-Bomb” play out. Will it be a fluid situation in the rocky waters of our economy? Am I minutes away from watching what may be the worst jobs report in the history of our national economy? Uncertainty aside, I am steadfast in my belief that we will be okay. Yes, all of us will ensure that we are, and the economy is still amazingly strong when you put all the people back to work. We will have damage. It’s too soon to say how much. One thing I know is that we have a world that is willing a return to our previous state. I have faith that we will in fact put the puzzle back together and it will paint a beautiful new picture of the American character, even if it looks a little different in the end. I am resolved in that belief. We are all stronger than we know! Christine Beckwith is a 30-year mortgage industry veteran who has broken many glass ceilings and has blazed a trail for many female professionals to come. Christine is currently president and chief operating officer of 20/20 Vision for Success Coaching and Consulting, a decorated, sought after and award-winning leader. Christine may be reached by e-mail at Christine@VisionYourSuccess.net.

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n MAY 2020

How To Use the Web for Client Credit Help By Pam Marron

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

redit help, down-payment assistance and budgeting are the three resources researched and provided at Clients2Homeowners. com for loan originators and real estate agents to use for prospective homebuyers. As clients are helped, more information is being found and shared. Let’s focus on how to initially refer clients for credit help. Getting Started With My Own Clients Initially, a list was made of clients pre-qualified for a mortgage, but credit assistance was needed to help them get “Mortgage Ready.” Upon initial conversations with these clients, the introduction of working through issues with a credit counselor to prepare for a home purchase was well-received and payment upfront by the client for the minimal cost of services seemed to be of little issue. My agreement with them was to provide a credit towards their mortgage closing costs for this upfront fee when they finally closed on a home.1 I submitted my list of clients to Beverly Malina at Neighborhood Home Solutions, and she e-mailed each prospect introducing herself

and letting them know she was there to help. But paying for the housing counseling services upfront ended up being the challenge for most of these clients. Quite a few clients communicated with me to let me know when they would be able to cover this upfront cost. To get this effort going, it became a priority to nail down the ability to have funds available through the individual loan originator avenue to pay for housing and credit counseling services if the client was unable to pay upfront. I worked out a compensation plan with my company that allows me to put aside income to pay for the $275 plus credit report “Fee for Service” for some clients. This allowed me a similar benefit as banks that provide Community Reinvestment Act (CRA) funds to pay for housing and credit counseling, and I could do this for clients even above LMI (low- to moderate-) income. Five clients were called to let them know this cost would be paid for them upfront. All seemed surprised, genuinely grateful and connections to Beverly Malina, certified credit counselor, began. I keep in touch with Beverly to make sure these clients proceed. If they do not, I replace them with new clients on the list.

Two Distinct Credit Levels And Referral Recommendations It is important to distinguish the right resource for client help with credit. Here are the two options determined: 1. Short term credit help needed up to one year For some, short-term credit issues like those noted below where resolution can be accomplished within one year, a referral can be made to a certified credit counselor at most HUD housing counseling agencies.2 As a certified credit counselor, Beverly Malina at Neighborhood Home Solutions can help clients in Florida,3 and she often uses credit reporting agency tools4 to: • Improve credit scores • Build credit • Correct credit issues • Get student loan payments reduced commensurate with current income5

2. In-Depth Credit Help Up To Five Years Recently, calls have been coming in for more serious credit issues. This prompted discussion about a longer timeframe of help and the need for debt management that is not available at all HUD housing counseling agencies. Some in-depth credit issues that may require assistance for up to five years are: • Debt management plans • Student loan restructure for defaulted loans and a refinance commensurate with income for government and private student loans5 • Foreclosure prevention counseling • Bankruptcy counseling • Mortgage loan modifications For more information, contact the National Foundation for Credit Counseling online at NFCC.org and locate an agency.

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

Footnotes 1—A Memorandum of Understanding (MOU) form confirms that a credit will be provided by the loan originator towards client mortgage closing costs at the mortgage closing for upfront housing/credit counseling services paid by the client. 2—Please note: The $275 + credit report cost has only been arranged for exclusively with Neighborhood Home Solutions. 3—Visit https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm and pick your state and city to find the nearest HUD housing counseling agency. For credit help specifically, ask agencies contacted for help from a certified credit counselor. If none are available, go to the agency locator at NFCC.org. 4—Wayfinder and What If Simulator are two credit reporting agency tools often used to see what overall credit can be improved on and to get specific creditor scores improved. 5—Please note: Some student loan companies will only speak with the client and not third parties.

a special focus on MARKETING a special focus on MARKETING a special focus on MARKETING a special focus

Let’s talk. By Eric C. Peck

N a t i o n a l M o r t g a g e P ro f e s s i o n a l M a g a z i n e P re s e n t s …

M O R T G A G E M A R K E T I N G R O U N D TA B L E D I S C U S S I O N 2 0 2 0 he COVID-19 pandemic has changed the game in a number of ways, and the ways in which the industry is marketing has shifted as well. One’s proven marketing method may be another’s nightmare scenario, but one thing is for certain, the current pandemic has not slowed the industry down. And while there is no single proven method to market one’s goods and services, many have come down the pipeline over the years proclaiming their method as the tried and true path to drive customers through the door.

In conjunction with our Special Focus on “It’s All About Marketing” this month, National Mortgage Professional magazine was able to get some of the industry’s top marketing minds together to share their ideas on a number of marketing concepts and ideas that impact the ever-shifting mortgage industry.

Let’s meet our panel as they share their words of wisdom and advice, imparting their years of industry experience in the field of marketing, and sharing their knowledge with our readership.

ROUNDTABLE PARTICIPANTS ... Michael Oddi

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Ralph LoVuolo

Erica LaCentra

Erica LaCentra, director of marketing, is responsible for planning, developing and implementing RCN Capital’s marketing plan, as well as overseeing the company’s Marketing Department. Joining RCN Capital in 2013, Erica led a strategic rebrand to position the company for nationwide expansion.

Ralph LoVuolo is an author, speaker and coach to the mortgage industry. He has more than 60 years in the business of mortgages. He has started, either for himself or for others, nine mortgage companies. He extensively writes and speaks about all phases of the mortgage industry both to his coaching clients and groups throughout the USA.

Matthew Lucas

Crediting several mentors and a willingness to evolve, Matthew Lucas worked his way up to director of marketing for NOVA Home Loans after starting in the industry as a receptionist in 2002. Matthew was one of the first to recognize how social media could benefit the mortgage industry.

Michael Oddi is chief marketing officer for Velocity Mortgage Capital, a direct portfolio lender. With nearly 40 years of experience, Michael has developed campaigns for wellknown brands, including Apple Computer, Intuit, QuickBooks, Stamps.com, Household Bank, Charles Schwab and others.

Steven Winokur

Steven Winokur is chief marketing officer for Angel Oak Companies and oversees all marketing and branding initiatives for the firm and its affiliated companies. His primary focus is promoting the power of non-QM lending and establishing Angel Oak as the preeminent firm in that space.

Credit: solvod

on MARKETING a special focus on MARKETING a special focus on MARKETING a special focus on MARKETING

THE ROUNDTABLE In light of the current state of affairs with the COVID-19 pandemic, what marketing tactics have you resorted to in this new era of doing business?

other industries. On the referral partner side of business, many of our loan officers are utilizing video conference platforms to host and/or attend “Lunch and Learns” or other classes. On the consumer side, this has been an opportunity for LOs to engage their social media audiences like never before. Leveraging technology and marketing strategies with social media, our loan officers are maintaining and growing their business in this current environment.

Erica LaCentra: I wouldn’t necessarily say this is a marketing tactic, but we Michael Oddi: Most experts agree that once treatments to COVID-19 are have started to communicate with our customers much more frequently than available, the market will advance at an elevated pace because of the ecowe normally would by e-mail, social media and by phone during the COVID nomic stimulus efforts of the Federal Reserve and Treasury. Our current pandemic. We have also shifted our messaging to avoid being overtly prostrategy is to build a war chest of marketing materials (e-mail campaigns, flimotional, and we are focusing on educating customers, social media posts, search engine marketing ers. People don’t want to be sold to right now, guides and creative) for our brokers to use that people are looking for information, on our will help them kick-start their business when business, on the state of the market, about some sense of normalcy returns. Our advice how to cope with how this is all affecting our “I find now that we are utilizing to brokers is to spend time now to build your industry, etc. We have definitely had to adadvertising capabilities so you can unleash just to not being able to attend events and our traditional marketing them at the opportune time. started to utilize online platforms like Zoom media like print ads for and GoToWebinar much more frequently Steven Winokur: A large part of our marketthan we ever had in the past. It allows us to ing efforts were structured in speaking and purely promotional purposes, still have face-to-face interaction, even if we exhibiting at events. Even when they come whereas our digital efforts aren’t able to be together at a conference. back, it will likely be at a lesser level. So, like everyone else, we’ve had to adapt. One Ralph LoVuolo: Here, it is necessary to need to have significantly more of the ways is though technology. A big one involve fintech to contact a database. I’ve substance to them to stand we’ve begun using is video—not corporate pushed my coaching clients that even if they produced ones—but allowing our account have not been in the business for a very long out from the masses.” executives to use video as a way to connect time, they have a database at their fingertips with their originators. It feels more personal and should be using it extensively, i.e. their —Erica LaCentra, than an e-mail and allows you to better exsmartphone address book. By texting, indiDirector of Marketing, RCN Capital press emotions. It has already been a focus vidually, their entire database on a regular for 2020, but it’s become even more importbasis with information about the interant with this pandemic. est rate market, they will continue Credit: Electric_Crayon

“Our marketing methods are defined by our core values: Provide the best combination of rates, services and fees to our consumers, promote sustainable and fulfilling careers to our employees and give back to our communities.” —Matthew Lucas, Director of Marketing, NOVA Home Loans

Ralph LoVuolo: The most important “thing” is not a “thing” at all. It is that mortgage brokers can and should share an idea (or series of ideas) that will help their referral source accomplish their own goals. This is not a new concept. If you give your referral source what they need, they will give you what you need. The mortgage broker first needs to have a deep understanding of the inner workings of the real estate business. With that knowledge, they are perfectly

“I have taught countless people in any business the following: “People do business with people they trust.” For the mortgage broker, this is the pot of gold they attempt to place at the desk of every professional real estate salespersons desk.” —Ralph LoVuolo, The Mortgage Godfather

n National Mortgage Professional Magazine n MAY 2020

Matthew Lucas: With endless technology at our disposal and a market that is currently advantageous for homebuyers, navigating the current waters isn’t as challenging for us as it might be for

What can mortgage brokers share to help craft their company and personal brand?

NationalMortgageProfessional.com

to do business when others are wondering how to act. Real estate is still being sold, virtually in some areas, and in others, nothing has changed. We all know how much the numbers of sales have decreased, but if a mortgage broker has done their homework in the past, they will always generate business. A short call just to inquire about the well-being of your real estate agents is an absolute.

a special focus on MARKETING a special focus on MARKETING a special focus on MARKETING a special focus

positioned to understand the challenges faced by their real estate agent/referral source. The broker can say to the agent: “I have an idea that will help you produce more business.” This approach immediately and unequivocally separates the mortgage broker from their competition.

find the products you offer, search engines will drive highly qualified traffic to your site. Since people searching for a specific term often have an immediate need, they typically convert to qualified leads at a much higher rate. Plus, there is no media cost for an organic search.

Matthew Lucas: It’s important that a mortgage broker share authentic, relevant and consistent content with their borrowers and partners alike. Authenticity tells our audience that we value the human element of business over the transaction. Relevancy keeps agents and consumers looking to us for the most timely and accurate industry information. Consistency is the key to earning the trust necessary to handle the largest financial investment in one’s life. Our story is the same, whether it’s being told to a homebuyer, real estate agent or potential employee, and that goes a long way for any company’s brand–no matter the industry.

Steven Winokur: I’ve always found measuring conversion rates to be an interesting challenge in the wholesale mortgage business. But what we’ve seen work well in getting leads and attention is search engine optimization. Focusing on small niches has allowed us to rank high in the organic search results, which in turn, has led to more website visitors. And that has led to more leads and contacts from our site. It’s harder to measure SEO activities, but we’ve seen an increase in website visitors the more we focused on it.

Michael Oddi: My advice to brokers is to stop focusing on the details of your mortgage programs. When you do, you become a commodity. Try to elevate your brand above others by having a better reason for people to choose your brand over another.

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

“Be authentic and real around building your brand. Then, your clients and colleagues will feel confident in the value of your brand because it’s an extension of who you are.”

Have you gone to 100% digital marketing efforts, or do you still use standard old school techniques? Do you see a drastic difference between the two?

Erica LaCentra: While we continue to increase our digital marketing efforts, it never fails to amaze me how much we still rely on more traditional marketing techniques, such as print advertising. As we continue to expand our digital marketing efforts, we have gotten much smarter with the areas that we are spending money and Steven Winokur: Authenticwe are placing an emphasis on virtual client eduity–that’s the most important cation and providing clients with content and digthing to help craft a company —Steven Winokur, Chief Marketing Officer, ital resources. I find now that we and personal brand. The brand Angel Oak Companies are utilizing our traditional comes from you–your story, your marketing media like print background, your empathy, your ads for purely promotionlanguage and your personality. It al purposes, whereas can’t be forced or faked. So to build our digital efforts need to your brand, share who you are and have significantly more what you stand for. Then, your clients substance to them to and colleagues will feel confident in the stand out. However, we value of your brand because it’s an extension of who you are. still need a healthy mix of both traditional and digital marketing and I don’t What marketing methods have you found to yield the see that changing anyhighest conversion rate? time soon. Erica LaCentra: We find that targeted publication advertising with both —Michael Oddi, Chief Marketing Officer, Ralph LoVuolo: Not one a digital and traditional component (print ad, printed directory plus an Velocity Mortgage Capital person I coach or have online directory, online advertising and retargeting) yields a very high coached would dare to conversion rate. Of course, this isn’t true for all publications, but having depend on fintech only one platform that allows for multiple touch points across multiple types Credit: Electric_Crayon as a source of business. of media has yielded success for RCN. Also, events continue to yield high It cannot yet replace the proconversion rates for RCN, although we find there is a significant lead time befessional person-to-person referral. We know that the public tween meeting someone at an event and actually converting them. We factor is more and more inclined to seek the “best deal” through follow-up efforts, as well as client nurturing efforts, into our overall marketing technology, but there is nothing that yet replaces people doing plan for events though. business with people. The real estate finance business is too Ralph LoVuolo: First the mortgage broker needs to find the type of person important to the borrower to completely be able to understand they want to do business with and definitely be discriminatory as to profesthe intricacies of the mortgage industry. A professional person is still sional Realtors as a source of business. It is that relationship I seek for my required. coaching clients. It is the most lasting. When a loan officer is able to have Matthew Lucas: We don’t believe a company can or should dedicate 100% someone use the following words “Mr. and Mrs. Buyer, you’ve told me that of their efforts into one type of marketing. That being said, digital obviously you need a mortgage to purchase this home and I tell you without qualificatends to have a deeper potential for analytics, delivery of a message to a new tion of any thoughts you might have, call this person who has the knowledge, audience and the ability to be fluid in marketing efforts. We’re a full-service understanding, and personality along with professional skills that you need to marketing department, so we still offer traditional print materials, like flyers buy this home. You’ll not match their skills anywhere.” I have taught countless and postcards. Digital marketing might have the edge when it comes to gainpeople in any business the following: “People do business with people they ing new clients but keeping your pulse on something as simple as a persontrust.” For the mortgage broker, this is the pot of gold they attempt to place at alized birthday card to a past client still has significant value in maintaining the desk of every professional real estate salespersons desk. existing relationships. Michael Oddi: Few marketing “methods” work in a vacuum. They need the support of other methods. For example, search engine optimization, often referred to as “organic search,” revolves around building a website with useful content that drives visitors to your site through Internet search engines. If you identify the top searched keywords that potential customers use to

“Try to elevate your brand above others by having a better reason for people to choose your brand over another.”

Credit: solvod

on MARKETING a special focus on MARKETING a special focus on MARKETING a special focus on MARKETING

Don’t Pause, Pivot: Leveraging Technology To Stay Connected In A Touchless World Omitti

After you have established the intent and desired outcome, begin drafting your content. According to a Microsoft study, the average person has an attention span of eight seconds. So, if you are creating a sales video with the intent to maintain or establish a

an option.” n lo

r ge eting plan is no ark

• Are you educating or training your viewer? • Are you attempting to establish or maintain a connection? • Are you selling a product or service? • Are you creating a series of videos or one-off communications for a specific purpose?

Point-of-sale (POS) technology was literally created for this type of landscape. It is a mobile-friendly platform with a loan application that supports multiple origination options, including HELOC origination, refinance, and home equity loans. Industrywide, there has been a relatively slow adoption of this technology. However, having a POS at your fingertips is an integral piece of the digital, remotely accessible mortgage experience.

As referenced in Stephen Covey’s 7 Habits of Highly Effective People, “Begin With the End in Mind.” Create a clear plan of what each video should accomplish. A few questions to consider:

According to an article published by the Pew Research Center, 55% of U.S. adults often get their news from social media. Although you may not have a profile or be a Facebook fan, it is the world’s most used social platform. Not only are your borrowers and prospective borrowers using Facebook, your competition is as well. Omitting a social strategy from your marketing plan is no longer an option.

Impactful Ways To Leverage Social Media

Google searches for “Good News” have reached record levels. Social media trends show that Facebook Live videos get the most engagement. Consider hopping on a Facebook Live to share good news with your friends and followers. See DON’T continued on page 43 25

n National Mortgage Professional Magazine n MAY 2020

The Power Of A Point-Of-Sale

Tips For Effective Video Marketing

Social Media Is Key

NationalMortgageProfessional.com

A robust marketing plan is useless without the ability to properly serve your borrowers or manage your team. Now is the time to evaluate your core systems. Can your loan origination system handle the new ways in which you do business? Your loan origination system should be an affordable platform with centralized data storage and access, including electronic signature features, premium integrations, and electronic data collection and verifications. Also, efficient internal communication mechanisms and real-time reporting are crucial in large teams. Is your current system rising to the occasion?

As difficult as social distancing has been, imagine its impact without video technology. The human spirit craves connection and we have witnessed video communication providers scramble to meet the wave of demand. A platform once relegated to conference calls and corporate presentations, Zoom has emerged as a clear market leader. According to its founder, Eric Yuan, in March, Zoom’s number of daily users skyrocketed to more than 200 million from a previous maximum total of 10 million. Again, this is a byproduct of our ability to adapt. Prior to this pandemic, video marketing was on the rise with 81% of businesses using it as a marketing tool. An unsurprising fact considering that YouTube, a global powerhouse, has more than a billion active users. It is also the second-largest search engine. Video is preferred because it is engaging, builds trust and strong emotional connections. Additionally, it is argued that 60 to 80% of communication is non-verbal. People tend to base decisions less on what they hear and more on what they see (consider the impact of software product demonstrations versus reading an e-mail). Do not get me wrong, your words matter. However, video helps establish interpersonal communication that is difficult to create with words alone.

connection, keep your videos between one to two minutes long. For best results, try to grab your audience’s attention in the first 10 seconds. These short videos are easy and quick to produce but can last a lifetime. Be strategic and intentional with your presentation.

as o

a te g y f r o m y str o ur

Evaluate Core Systems

Incorporate Video Into Your Marketing Plan

al ci

here is a sense of reluctance permeating throughout our industry. Rightfully so, considering we are navigating through a situation that elicits more questions than answers. Despite this fact, we have noticed certain trends emerge. LinkedIn reported a 28% surge in remote job postings in March. A concept once resisted by the mortgage industry has quickly become the heartbeat of its business. A perfect example of this is Quicken’s effortless transition of 90% of its workforce to remote status. We have witnessed technology once believed to be ancillary become essential tools for business continuity (think Zoom, BombBomb, etc.). The interesting aspect of this crisis is that in some ways, it brought clarity. We now understand the importance of adaptability and that it simply cannot happen without embracing technology. So, what does that mean for your business and its marketing strategy? You may need to adjust course. Do not pause your marketing plan, but pivot and reassess as new information presents itself.

“

By Shakria Hall

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Caesar’s Palace, Las Vegas

Be part of the nation’s largest and most innovative mortgage conference focused solely on the origination community at brokerages, banks and credit unions. A three-day weekend event that motivates originators, drives your business forward with new tools, and energizes and educates on ways to propel volume to new heights. And, to make this an event truly different from all others, welcome to the nation’s first Live & Live-Streamed mortgage event. Our exhibit hall center showcases our unique Media Broadcast Plaza, where we’ll be broadcasting live sessions, podcasting live interviews, and showcasing the best in the mortgage industry.

Use code NMPOCN for free registration www.originatorconnect.com

PRESENTING SPONSOR

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n MAY 2020

a special focus on MARKETING a special focus on MARKETING a special focus on MARKETING a special focus

MARKETING IN THE AGE OF WORKING REMOTELY:

How To Stay In The Game By Leveraging Tech

echnology has always been at the forefront of society’s resources. But now, more than ever before, we—on an individual level—are being forced to rely on it, not only as a mode of progression, but in many instances, just to maintain the status quo. Due to the current state of pandemic, and to promote safety, many companies are directing their employees to the virtual office— instructing them to work from home and/or a secure remote environment. So, whether managing employees or communicating with customers daily, it has become mission critical that we take advantage of software available at our fingertips to stay engaged with our teams and our audiences.

But Is Remote All That New?

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Certainly, there is more pressure now to work from home due to the strict COVID-19 quarantine regulations. But, according to CNBC, in 2018, more than 70% of professionals reported they worked remotely or from home at least once a week. In fact, back in the late 1980s and early 1990s, Home Office Computing Magazine championed the very idea of “The Home Office,” which played well into the growing entrepreneurial spirit—embodied by desktop publishers, copywriters, graphic designers, advertisers, marketers, and many more—by glamorizing the idea of leveraging technology to achieve complete independence. Many companies, especially in the mortgage industry, support and promote the idea of ops employees working from home to maximize efficiency by decentralizing fulfillment.

By Paul Lucido

But how does this apply to entire departments whose daily functions are complexly integrated into the company’s larger mission?

It Boils Down To Communication

Most people today own smartphones, and most smartphones are kept within an arm’s reach. People are continuously checking their e-mail, text messages, staying engaged on newsfeeds, and often indulging in social media—regardless of what they may be doing. As a society, we have become multitaskers of multimedia, integrated into the digital stratosphere—the proverbial well of information where everyone drinks from around the clock. This is the “new norm.” We are in it. But that’s not enough. Instead, we must learn to navigate it, build and uphold an effective presence, and most of all, not lose our footing. Whether it’s fostering a company culture, making a brand footprint or building our own “personal brand,” we live in a time where maintaining a presence through a constant stream of content and communication is vital to both our business and our existence. Communication software such as Zoom, Microsoft Teams, Basecamp, Webinars or Slack has been— until recently—another tool at the industry’s disposal. But it has quickly become our lifeline. Most companies have already been taking advantage of this technology and are currently honing their skills, but those that have yet to hop on the bandwagon will need to soon, or they’ll be left in the dust. In a April 2019 National Mortgage

Professional Magazine article “Living on Video,” I discussed the reality that many of us now live our lives through a lens. We are subscribing to the ideology of embracing modern technology and communicating more effectively in a business environment that has evolved into something much more powerful and pervasive; one might say, an environment that is moving at the speed of business.

How Do We Effectively Mine For New Customers?

When it comes to divisions that are well-adapted to virtual, multi-media operations, marketing is unmatched, as many of its operations have already migrated to the digital space and existing customers, borrowers and referral partners have grown accustomed to it—if not embraced it. To effectively mine for new customers begin by leveraging your customer database. • Know your audience: While prospecting for new business is unavoidable, mining your existing database can prove to be just as valuable! Sometimes, it’s not about purchasing another cow, but rather milking the cows you already have. Scrub your referral database and reach out to your contacts while they are working from home. If you can’t be physically present with them, stay mentally present by sharing relevant content that will reinforce your connection and help to build or re-establish a level of trust. • Content is king: Creating a content strategy is key, but where do you start? It might help to conceive of marketing as “educating.” Start with the basics of your practice, product or service, and approach your audience

Credit: pixelfit

with the intent to raise awareness— to attract them simply by sharing the facts. As Ginger Bell, author of The Edumarketer, advises, “Always pass on what you’ve learned” and “Be the marketer of your expertise.” Whether quick static posts, articles, blog material, white papers, videos or podcasts—it’s important to create and disseminate content! Don’t worry about what you don’t know—rather, focus on what you do know.

Applying Soft Skills/Emotional Intelligence Though often overlooked, in a landscape of exponential growth and evolving technology, success in the marketing field greatly depends on your level of irreplaceable soft skills, including creativity and emotional intelligence. Emotional Quotient, or “EQ” as it is commonly referred to in the field of psychology, was a term coined by psychologists John Mayer and Peter Salovey. The duo offered the first formulation of a concept they called “Emotional Intelligence,” measured by the “EQ,” much like standard intelligence is measured by the Intelligence Quotient (IQ). According to a Cengage survey conducted in 2019, more than 70% of employers are primarily looking for soft skills when vetting entry-level employees. The study also reports that some of the most valued soft skills are related to listening and communication. While technical or “hard” skills relate to one’s ability to complete a more structured task, such as calculating mathematics, coding, or physically assembling products, soft skills rely on subjective and relative factors, such as context, third parties, the mind’s ability to adapt to certain situations, and critical thinking based on the analysis and synthesis of confounding external and internal variables. Examples of soft skills include emotional intelligence, adaptability, empathy, public speaking, writing, and other skills related to interpersonal communication, such as team management. Soft skills have always been an important aspect of marketing, even if not overtly touted—some of us are just better at communicating than others, we say. But now, those “others” won’t be able to rely on Mr. Personality to take the stage while they hide behind the curtain because the stage is now the screen and everyone is behind it. Making a concerted effort to hone these soft skills is becoming increasingly critical as our capacity for face-to-face contact dwindles—running the risk of taking interpersonal communication with it altogether. No matter how many tricks

See HOW continued on page 43

on MARKETING a special focus on MARKETING a special focus on MARKETING a special focus on MARKETING

OUR PROGRAMS ONE MONTH BANK STATEMENT & VOE

NON-PRIME

• Most Recent Personal Bank Statement

• Down to 500 Credit Score or Below

• Down to 675 Credit Score

• Up to 80% LTV

• 75% LTV Max Purchase

• No Reserves Required

• 70% LTV Max Refinance

• Up to $7.5 Million Loan Amounts

OUTSIDE DODD-FRANK®

OUTSIDE DODD-FRANK® PLUS • 5 to 100-unit Commercial Properties

• Down to 600 Credit Score

• Down to 500 Credit Score

• Foreign Nationals NOO Only

• Up to 75% LTV

• Interest Only Available

• Business Entities and Trusts Allowable

• Up to $3 Million Loan Amounts

• Up to $7.5 Million Loan Amounts

Citadel Servicing Corporation NMLS ID# 144549, Licensed under Division of Business Oversight Under the California Residential Mortgage Lending Act license #41DBO-74196, Finance Lenders License # 60DB094450, and CA-DRE #01799059. For mortgage professionals only. This information is intended for the exclusive use of licensed real estate and mortgage lending professionals in accordance with local laws and regulations. Distribution to the general public is prohibited. CSC is an equal opportunity lender. Rates, terms, and programs subject to change without notice. Offer of credit subject to credit approval per applicable underwriting and program guidelines, applicant eligibility, and market conditions. Not all applicants may qualify. Not valid in the following states: AK, HI, IA, MA, MS, MO, NM, NY, ND, OH, RI, SD, and WV.

(949) 900-6630 | sales@citadelservicing.com | www.citadelservicing.com 15707 Rockfield Boulevard Suite 320, Irvine, CA 92618

n National Mortgage Professional Magazine n MAY 2020

• 1 to 4-unit Properties

NationalMortgageProfessional.com

• Foreclosure, Short Sale, and Bankruptcy ok

a special focus on MARKETING a special focus on MARKETING a special focus on MARKETING a special focu

Eight Ideas For Marketing In The Age Of Working Remotely By Traci Huntemann-Piatt

NationalMortgageProfessional.com

MAY 2020 n National Mortgage Professional Magazine n

Grow Your Online Network

Building your connections and contacts is something you should always be working on. Now is a great time to add that pile of business cards you have

Try Video Marketing And Other Visual Content

Cr ed

it:

tad

Wa tth

anaku

adhere to the FTC’s CAN-SPAM Act. The act requires that your subject lines clearly state what the content is about and also stipulates that your e-mails have an opt-out feature. The easiest way to make sure you’re in compliance is to work with your company’s marketing team, which can provide you with guidance.

ith many people now working at home due to COVID-19, mortgage professionals need to rethink how they market to their current and potential customers. The good news is there are plenty of marketing ideas that can be done from your home—and now is a great time to hone your skills. More than ever, people are turning to social media and other online avenues to socialize and remain in touch. That means you have a more captive audience for marketing. While many homebuyers are simply waiting things out, that doesn’t mean they’ve stopped shopping online. Indeed, they may be doing more of it, since open houses have come to a halt. Plus, with historically low interest rates, refinancing demand has rebounded once again, especially with many homeowners looking to cut monthly budgets. In fact, as of midApril, demand for refinance loans was running nearly three times higher than a year ago, according to the Mortgage Bankers Association. A recent article in the Harvard Business Review noted that social distancing guidelines keeping many people at home are creating major shifts in consumer behavior. For example, more consumers are tuning to broadcast and cable television and other premium media sources for credible information, as well as spending greater amounts of time on social media. “Some of these behavior changes may be temporary,” the article notes, “but many may be more permanent. As people move beyond the current mode of survival, the momentum behind digital-experience adoption is unlikely to reverse as people are forced by circumstances to try new things.” These trends spell an enormous opportunity to get your name and brand in front of a larger, more attentive audience. It’s also a great time to try some new forms of marketing. To help you get started, here are some ideas and tips for marketing while you are working remotely.

to your list of contacts. Don’t forget to nurture online networking opportunities, such as LinkedIn groups or Twitter chats. Liking or sharing something on social media that rings true to you will help you stay topof-mind with your contacts.

according to influencer marketing platform Izea, which found in a March 2020 study that, “In a time of stress, consumers favor messages from those they follow and trust.”

Start A Blog

E-mail remains one of the most inexpensive and effective ways to market your business, and make people familiar with you and your brand. But it’s important to do e-mail marketing correctly. Subject lines that are overly promotional or scream “marketing” are far more likely to be deleted or marked as spam. Along the same line, mass, impersonal e-mails do nothing to build trust with current or prospective customers. That includes e-mails about how you’re managing the current crisis or are “there-for-you” type messages. More likely than not, people have already received quite a few of those e-mails from their insurance company, bank or the other companies they do business with. Unless you have something of value to say or that will educate the recipients, don’t send it. For example, focus on subject lines that will make people feel that the e-mail is specific to them or their needs. Then give them information that they can use—such as how refinancing could reduce a borrower’s mortgage payments, or allow them to take out cash for an emergency expense. Speaking of e-mails and e-mail subject lines, it’s important that you

A blog another great way to grow your network. Short posts about topics of interest to your customers and prospects will position you as an expert and an “influencer,” or someone with the ability to sway decisions on purchasing products or services. If writing is not your forte or you lack the time to do it, check with your corporate marketing department for content you can use or if you can work with them to leverage a professional writer. Blog content can have multiple purposes. They should be available on your company’s website and linked to corporate social media accounts, allowing you to link to it from your MLO and personal accounts, as well as use them as part of an e-mail marketing campaign. A coordinated plan using all these tactics reaches your target markets with relevant information and increases SEO for your website. Blogging also helps foster trust, and for those in the business of helping people with home or refinance loans, building trust is critical. Borrowers will naturally turn to mortgage professionals perceived as trustworthy and knowledgeable about the loan process. Building trust is also particularly important during a crisis,

Launch An E-Mail Marketing Campaign

Using fun or informative infographics in your e-mails or on your website will make things easier to read, as well as more memorable. According to marketing company Hubspot, when people hear information, they’re likely to remember only 10 percent of it three days later. However, if a relevant image is paired with that same information, people retained 65 percent of the message three days later. Another interesting Hubspot statistic: Using “Video” in an e-mail subject line boosts open rates by 19 percent and click-through rates by 65 percent. Something as simple as sharing an online video of a tour of a house for sale can get your current and prospective customers to see your messaging as well.

Update Your Site Or Launch A New One

Your website is a reflection of you and your brand. Now is the time to make sure it looks modern and professional, and has been kept up-to-date. If your latest blog is from 2017, you’ll either be perceived as out of touch or just lazy. If you need help, hire a professional artist for an updated design. You’ll be amazed at the difference a website makeover can make.

Focus On Your Specialty

Whether you have a deep knowledge of your local housing market or expertise in a particular loan type, make people aware of it. If you’re a VA loan specialist, consider joining a LinkedIn or advocacy group dedicated to military personnel and veterans, or maybe even try advertising in online military publications. If you’re an expert on local real estate, keep your customers and prospects up-to-date on trends you’re seeing, along with recent sales and listings. Consider doing a webinar or online meeting with prospective buyers or referral partners to share your

CONTINUED ON PAGE 34

“Because the virus that causes COVID-19 can be spread through almost any surface, including magazines and newspapers, your customers have more incentive than ever to turn to the Internet for news and information. Why not put some of your market budget toward online ads?”

us on MARKETING a special focus on MARKETING a special focus on MARKETING a special focus on MARKETIN

others cover the world ...we cover yours!

Visit MortgageNewsNetwork.com for the industry's latest topics... on-demand, 24/7 and sign up for your complimentary Daily MNN Show Alerts. Day MONDAY

Show Title

Description

Day/Time Airing

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.

Mondays at 7 a.m.

Military Spouse Monday

Military experts answer questions about VA loans from veterans and their spouses.

Mondays at 11 a.m.

TUESDAY

The Mortgage Godfather

Ralph LuVuolo Sr., “The Mortgage Godfather,” shares his unique and innovative approach to mortgage origination. You better become a follower or else. It’s an offer you can’t refuse!

Tuesdays at 7 a.m.

WEDNESDAY

Under Construction

Construction loans made easy.

Wednesdays at 7 a.m.

THURSDAY

Quick Hits

Carl White’s simple strategies for a quick boost in your productivity.

Thursdays at 7 a.m.

FRIDAY

Inside the MBA

Your bi-weekly window into what’s happening at the MBA.

Fridays at 7 a.m. bi-weekly

Authors and advertisers can enhance the impact of their industry trade publication content through this professionally produced 3-4 minute video interview. The Beyond Print product includes pre-production planning, a recording scheduled at a mutually convenient time either on-location, in our studio or done remotely, and post-production editing. The interview can be linked to select digital publications, the client's website, and any other digital or print asset deemed appropriate.

If you have a product or service for mortgage professionals you can be a sponsor for these shows. For more information about these sponsorships or Mortgage News Network custom video productions please send an email to Info@MortgageNewsNetwork.com or call/text Andrew Berman at 516-784-4840.

n National Mortgage Professional Magazine n MAY 2020

Beyond Print

NationalMortgageProfessional.com

Master the Markets with Barry Habib

Sponsor

heard street on the

Western Ohio Mortgage Selects Calyx Path For LOS

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Calyx has announced that Western Ohio Mortgage Corporation has chosen Calyx Path as its loan origination software. Western Ohio Mortgage is a community lender that has been serving its customers since 1999 with four locations throughout Ohio, Indiana, Florida and Kentucky. “We decided to implement Path because having a solution that is cloud-based and fully configurable to the loan process that is most efficient for Western Ohio Mortgage is very important to us and a key factor in our customers’ continued satisfaction and, ultimately, our success,” said Teresa Rose, president of Western Ohio Mortgage. “As a long-time, 20-plus year, loyal Calyx customer, we view Calyx as a trusted partner that we’re really looking forward to continuing our partnership with.” Calyx Path is an innovative, cloudbased solution designed to simplify the loan process while still providing lenders the controls and flexibility they need to run their business. Path is completely configurable to the lenders’ specific needs, including workflows, roles, organizational structure and compliance controls. “Path is designed for lenders like Western Ohio Mortgage who want a true cloud-based solution so they no longer have unexpected downtime, and their employees can work on any web-connected device from any location 24/7,” said Patrice Power, Calyx marketing director. WFG National Title Insurance Company Expands in Colorado WFG National Title Insurance Company, a Williston Financial Group (WFG) company, has

expanded its footprint in Colorado by acquiring access to title plant records in 11 counties that comprise 85 to 90% of all the state’s property transactions, allowing the company to deliver title reports with greater speed and efficiency. WFG National Title also acquired a title office in Colorado Springs, marking the company’s entrance into the housing market of the state’s second largest city. Anne-Marie Kuhlman, president of WFG National Title’s Colorado Division, said, “Our new branch is a fantastic opportunity to serve business partners and consumers in the red-hot Colorado Springs housing market, where values have been increasing steadily over the past several years.” Rob Sherman, WFG National Title Insurance Company’s senior vice president and regional director, said, “In addition to expanding our footprint and access to title plant data across most of the state, this move will also enable us to grow our commercial title business and assist commercial transactions in a more robust manner.” ClearEdge Taps OptifiNow For CRM Solutions

ClearEdge Lending has announced that OptifiNow will provide wholesale CRM and marketing automation technology to support its continued growth. The OptifiNow sales and marketing platform was selected by ClearEdge Lending based on its proven ability to deliver solutions that are custom-tailored for wholesale mortgage lenders. OptifiNow will support ClearEdge’s growth initiative by enabling it to

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.

better manage and support its broker customers, while executing sophisticated marketing campaigns to mortgage brokers contacts. The platform will integrate data from ClearEdge’s loan origination system to provide better visibility into production volume and measure the effectiveness of sales and marketing processes more accurately. “We’re taking a smart approach to growth, and that starts with a wellcoordinated sales and marketing process,” said Steve Skolnik, CEO of ClearEdge Lending. “OptifiNow met all of our requirements and proved to us that they could deliver.” ClearEdge wants to empower its sales team to provide brokers with information about their specialized mortgage products. ClearEdge’s marketing team will use OptifiNow’s integrated e-mail marketing module to create targeted messages and execute a variety of marketing campaigns. Automatic tracking of open rates, click through rates and instant notifications allows account executives to follow up quickly and provide more support. OptifiNow is integrated with ClearEdge’s LOS to provide even greater visibility of broker activity that enhances service delivery and deepens business relationships. John McGee, CEO of OptifiNow, said, “[ClearEdge has] a welldefined process and articulated their needs to us right away. It’s exciting to have a company such as ClearEdge give us the opportunity to work with them and provide a platform that will be central to their growth.” OpenClose Forms Partnership With Genworth MI OpenClose has partnered with Genworth Mortgage Insurance, an operating segment of Genworth Financial, establishing a direct integration to access mortgage insurance from the LenderAssist loan originator software platform.

The new integration works by leveraging OpenClose’s RESTful API Suite, IntegrationAssist, which makes interfacing with disparate systems easier to develop, quicker to implement and cost effective to maintain. “Providing real-time access to mortgage insurance pricing and certification workflow from within OpenClose helps our customers further automate their lending workflow and reduce costs. Our integration partnership with Genworth allows our mutual customers to immediately tap into their quality MI products,” said Vince Furey, chief revenue officer at OpenClose. OpenClose customers can expect a seamless user experience within the LenderAssist LOS that optimizes the mortgage insurance pricing and certification process, eliminates data re-entry and returns MI commitment data and documents to the LenderAssist LOS. “Making it easier and more efficient to order MI from start to finish makes the overall lending process smoother for homebuyers,” said Kevin McMahon, senior vice president of customer solutions at Genworth Mortgage Insurance. Secure Insight Partners With CoreLogic On Fraud Prevention

Secure Insight has entered into an agreement with CoreLogic to deliver highly-specialized closing table risk data surrounding the attorneys, title agents, escrow officers and mobile

notaries who handle lender and consumer funds and documents in mortgage transactions. Since 2012, Secure Insight has built a database of risk-assessed, risk-rated and monitored data accessible by lenders as a preclosing risk management and compliance tool. The company was the first to market with a fraud deterrence solution which recognized the significant harm that closing professionals could cause lenders and consumers due to wire fraud, mortgage fraud and closing errors. Secure Insight’s founders spent years researching mortgage closing risks, fraud losses and incident case studies before designing a SaaS solution that combined complex risk underwriting metrics with public and private data analytics to arrive at risk ratings for professionals which lenders could rely on to make an informed business decision regarding their transaction partners. Secure Insight founder and CEO Andrew Liput said, “With the addition of our agent risk data, the CoreLogic Loan Safe product will offer lenders even more reliable and relevant risk data to help them meet their compliance and loan quality assurance goals.” FirstClose Integrates With Calyx Point

HouseCanary acquired Dropmodel, a tech startup with analytic and financial modeling solutions for the single-family real estate asset class. In addition, Dropmodel co-founder Tom Blake has joined HouseCanary as vice president of investor platform. Dropmodel, founded in 2017, is a web-based real estate financial modeling, analysis, and presentation application that includes a suite of smart, flexible models, calculators, and tools for the single-family real estate sector. It helps single-family real estate investors—across all strategies—“drop” their data into analytical models and get instant, comprehensive results that support data-driven business decisions. As a 50-state brokerage, HouseCanary helps investors buy and sell up to $200 million of properties monthly. This acquisition will augment HouseCanary’s offerings providing investors with programmatic capabilities to buy smarter. “We are excited about Dropmodel and how it will enhance our product offerings,” said Jeremy Sicklick, co-founder and CEO of HouseCanary. “Dropmodel will add speed and clarity to our clients’ workflows to allow them to make investment and underwriting decisions faster and with more confidence.” Evolve Mortgage Services and Pavaso Partner on Remote Closing Solution Evolve Mortgage Services and Pavaso have announced the ability to deliver a true, end-to-end digital

Mortgage professionals to watch ... • Angel Oak Mortgage Solutions has added five new account executives nationwide: Corrina Ardizzone in Phoenix, Ariz.; Randall Arroyo in Baton Rouge and New Orleans, La.; Kimberly Barron in Houston, Texas; George McGrath in North and South Carolina; and Joshua Tolle in Los Angeles. • Primary Residential Mortgage Inc. (PRMI) has promoted Brandi Hume to senior vice president of risk management and Hollie Wylie to vice president of compliance. • WFG National Title Insurance Company (WFG NTIC) has appointed Brian Hughes as president of its Arizona Division. Hughes has more than 25 years of title and escrow industry experience in Arizona and will report to WFG National Title Insurance Company Senior Vice President and Regional Director Rob Sherman. • Guaranty Home Mortgage Corporation has announced the hiring of Brandon Bauch as executive vice president, national sales director for TPO.

• ReverseVision has appointed Joe Langner as president. • Mortgage Quality Management and Research LLC (MQMR) has promoted Mabel Lee to warehouse due diligence manager and has hired Scott Weintraub as internal audit manager. • LenderClose has announced the addition of Vice President of Marketing Tana Krumm, Data Analyst Kamal Sager, Product Manager Tabitha Rice and Project Manager Christina Woods to its team. • Two members of the Equity Prime Mortgage (EPM) leadership team have been promoted. David Abrahamson moves into the role of chief production officer and Jason Callan takes over as chief operations officer. • Waterstone Mortgage Corporation has named Richard Tobias as controller at its Pewaukee, Wisconsin-based corporate office.

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 #: 860.719.1991 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.

n National Mortgage Professional Magazine n MAY 2020

eMortgageLaw Rebrands as eClosePlus eMortgageLaw has rebranded as

HouseCanary Acquires Tech Startup Dropmodel

“With COVID-19 reshaping how borrowers interact, mortgage lenders need to provide borrowers with a low-contact closing experience to limit physical interactions and exposure,” said Paul Anselmo, CEO of Evolve Mortgage Services. “Fortunately, the long-standing relationship between Evolve Mortgage Services—with its doc engine SigniaDocuments—and Pavaso delivers the answer.” The integrated solution provides an online, paperless initial eDisclosure and eClosing experience that can be implemented by mortgage lenders and title agents. Or, it can be outsourced to an established relationship with a signing agency. The combined solution allows borrowers to electronically execute all of their mortgage loan documents from the safety and comfort of their homes. State-certified eNotaries can remotely acknowledge consumers’ signatures via Pavaso’s RON, and lenders can securely and confidently close their mortgage loans.

• Homebridge Financial Services Inc. has named Andrew Sobers branch manager for its office in Newton, Mass. Homebridge has also named Robb Sutton Midwest regional manager.

NationalMortgageProfessional.com

FirstClose has announced its integration with Calyx Point. With the integration of the FirstClose ONE platform, Point users will now be able to order instant property reports on credit, flood, valuation, tax and title directly from the Point platform. “We are always looking for ways to make lenders’ jobs simpler and partnering with Calyx presented a great opportunity to share the benefits of FirstClose ONE,” said Tedd Smith, CEO and co-founder of FirstClose. Point users will be able to leverage tools such as FirstClose’s SMART Select, which uses intelligence logic to automatically select the best title vendor within each financial institution’s unique lending footprint. With this integration, users will also have access to FirstClose’s intelligence logic and simplified vendor management, all through one user interface. “When looking for a settlement services provider, FirstClose stood out to us because they provide much more than just settlement services,” said Thomas Hennen, director of strategic partnerships at Calyx. “Their intelligence logic and other technologies made this decision an easy one.”

eClosePlus. The new name reflects the company’s specialization in digital eClosing solutions for the mortgage and title industries. eClosePlus simplifies the real estate closing process for mortgage lenders, settlement agents and borrowers by digitizing closing documents to facilitate eSignatures and producing a more efficient and almost errorless closing process. “Over the past several years, our proprietary online closing technology has empowered our clients to provide the fast, convenient closings today’s borrowers are seeking,” said Allan Polunsky, CEO of eClosePlus. “Our new name truly captures our commitment to continue delivering a much more efficient, modern and completely digital closing experience.”

mortgage experience that includes a full library of electronic- or e-enabled documents built entirely of Category One SMARTDocs and an eClosing platform that supports remote online notarization (RON). Pavaso’s RONcompliant solution allows borrowers to be virtually anywhere in the world to electronically sign closing documents, which can be eRecorded in counties where applicable.

Eight Ideas For Marketing In The Age Of Working Remotely CONTINUED FROM PAGE 30 expertise. With so many working from home, people’s virtual meeting skills have grown through necessity. They’re more comfortable and likely to jump on a virtual call to learn about something that interests them, like a first-time homebuyer seminar.

Don’t Forget Realtors And Other Referral Sources

A personal phone call or text from you can go a long way in maintaining relationships with your referral sources. Their day-to-day work may have stalled, but when things open up, they will remember the people who kept in touch. Think about creating joint marketing campaigns with referral sources that will launch in 60 to 90 days.

Consider Digital Advertising

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Because the virus that causes COVID-19 can be spread through almost any surface, including magazines and newspapers, your customers have more incentive than ever to turn to the Internet for news and information. Why not put some of your market budget toward online ads? Many online publications are offering discounts or deals for the next few months, which enhances the value of this marketing channel. There are also social media advertising options that can efficiently help reach your market.

It almost goes without saying that you should make sure that your customers and prospects always have an easy way to reach you. That includes by phone, e-mail or instant messaging. Many people like to video conference as well. Keep your voice mailbox clear and check your e-mails, texts and instant messages at least twice a day. Now is not the time to drop off the radar, or perhaps worse, have a client or prospect reach a full voice mail box. Look toward the future While you should be careful not to appear opportunistic or make light of the current situation, it’s actually fine to be positive and convey optimism. After all, people are looking for some hope today. And remember, much of today’s news and a lot of marketing messages right now are focused on the COVID-19 crisis. There are good reasons for that. But why not think beyond the next month or two, and consider what you can do now that will ramp you up for the future? You will be glad you did!

Credit: sturti

Traci Huntemann-Piatt serves as national marketing manager of Pewaukee, Wis.-based Inlanta Mortgage, a mortgage lender licensed in 24 states. She leads corporate marketing strategy and execution. Huntemann-Piatt is an innovative and awardwinning communications and marketing leader with broad experience in the corporate and non-profit sectors, and has spent the last 15 years in leadership roles within the financial industry.

Your One-Stop Shop For Mortgage Training and Superior Marketing Content Download FREE The 2019 Book of Home Finance at www.originationpro.com 200+ pages packed with the information needed to succeed in this industry.

www.OriginationPro.com l success@hershmangroup.com

1-800-581-5678

Credit: monkeybusinessimages

The Importance Of Marketing To Minorities And Empowering Women Through Homeownership

Understanding diversity marketing is key and will grow in importance in the mortgage industry. Some minority clients have different values, experiences and ways of interacting. These customers like to

know that a business understands who they are and what their needs might be. Featuring women, Hispanic families, and ethnic groups in ads is one way to let people know they have loan products for diverse groups. The photo isn’t enough, though. The content must be authentic, speaking towards products that are created specifically for their circumstances. Make clear that you know how to protect their financial health through homeownership. The message that you are an originator who gets real-life challenges and that everyone deserves the joy of homeownership, will go a long way. Expressing a commitment to diversity and willingness to tailor loan options to those customers is key. How to do it effectively and continuously better can sometimes be a challenge. One-size-does-not-fit-all and that should ring clear when reaching the minority market. A lender with experience can help guide you towards success. We at Angel Oak Mortgage Solutions market our non-QM products as solutions for a diverse buyer. This applies to people with varying circumstances, ranging from credit issues, self-employment, to gig workers among others. Many gig and non-traditional workers reflect the racial and socioeconomic diversity of our country. According to the U.S. Bureau of Labor Statistics, contract employees and a non-traditional workforce are more likely to be African American or Hispanic. These potential homebuyers can have challenges when it comes to qualifying for a home loan and might need non-QM solutions to qualify. Marketing must connect with these consumers at a level that speaks to their culture, environment and way of thinking. Invite a lender who understands this to join your real estate meetings to help convey this message and effectively present the loan products.

Tackle The Multicultural Market

Homeownership rates among women, Hispanics, and other minorities are typically lower than other backgrounds based on data from the National Association of Hispanic Real Estate Professionals and the National Association of Women in Real Estate Business. According to the Urban Institute’s Housing Finance Policy Center, “In many cases, women tend to have lower income and higher debt-to-income ratios.” The Urban Institute also issued a 2017 report that women can be more reliable than men at paying their mortgages and fewer women foreclose on properties. Still, there are some lenders who think women and other minority groups may be higher risk, even though Hispanics account for nearly 63% of total net homeownership gains. Homeownership could increase among minority communities if there was more education targeting these groups to promote options for lower- and middle-income families. Affordability and strict underwriting are additional contributing factors to the low homeownership rates. Originators could be leaving a lot of money on the table by not connecting with this diverse audience who want to purchase a home. Ad campaigns that speak directly to them can result in success and repeat referrals. An empathetic and authentic message works! The Hispanic real estate group reports that 59% of Hispanics feel advertising is truly meant for them when it reflects their cultural values and 52% say so when it includes

people who look like them. Sometimes, the best way to go about engaging minorities is to talk to them directly. Invite them to your office for a presentation or meet with a real estate agent group who specializes in minority markets. Learn how your products and services fit into their lives before explaining how you think your products might work for them. Then educate them on your loan products and how you can help. Becoming an advocate makes you a trusted resource that results in loyalty and referrals.

Showcase Your Own Diverse Team

The task of strengthening diversity and inclusion begins within organizations. Bringing people together from different cultures enhances the homebuying experience for both employees and borrowers. Support these efforts and use a lender who has a diverse group working for them. Visit them online and check out their leadership and group photos. A noticeable change happens when companies hire minorities and focuses their efforts on them. Angel Oak’s Marie Griffith, vice president of credit risk, was one of our first employees, and now oversees the credit department in Atlanta and Dallas. She was recently named to National Mortgage Professional Magazine’s “40 Under 40” list for her contributions to the mortgage industry. As a female minority, Marie strongly believes that “in order for the mortgage industry to effectively service minorities, they must employ and rely on a workforce that reflects them.” Home equity can be the most important and valuable asset that people own. Everyone deserves the opportunity to purchase their own home. Cast a wider net to pursue new market opportunities through a diverse group of people. The end result could be more referrals, a full pipeline to grow your business further, and a great feeling to go along with it.

Shannon Hunter is director of content marketing at Angel Oak Companies, dedicating her time and expertise since 2017. Shannon has led many initiatives in marketing helping to grow and strengthen the Angel Oak brand in the mortgage community. She may be reached by phone at (404) 978-0295 or e-mail Shannon.Hunter@AngelOakCapital.com.

n National Mortgage Professional Magazine n MAY 2020

Diversity Marketing

“Featuring women, Hispanic families and ethnic groups in ads is one way to let people know they have loan products for diverse groups. The photo isn’t enough though. The content must be authentic, speaking towards products that are created specifically for their circumstances.”

NationalMortgageProfessional.com

good lender offers a variety of options to suit their borrower’s diverse mortgage needs based on varying circumstances. There is not a “one-size-fitsall” mortgage loan, which is why non-QM products are so in demand today and new non-QM lenders daily enter the market. A huge population of people exist who require non-QM, and it’s not hard to find them. These are worthy borrowers such as the self-employed and those needing jumbo loans who just miss prime who cannot qualify for traditional loans. However, there is another huge group of people wanting to buy homes – minorities. According to the National Association of Hispanic Real Estate Professionals, approximately 78% of new households being formed across the country are from minorities that include Hispanics, but also African Americans, Asians and women. Many minorities can qualify easily through conventional financing, but plenty do not have expansive credit files, require larger down payments, and might rely on gift funds from family to purchase a home. Oftentimes, they think that homeownership is out of reach due to these circumstances. As originators prospect and market to homebuyers, it’s important to understand how to effectively market to and educate minorities on available loan products. This will help increase volume, since it’s not going to continue to work to exhaust the same sources of new business. Hispanics, African Americans, Asians and other minorities make up a significant population of household growth, with the Hispanic population projected to have the most growth potential. The answer to helping them lies within a mix of alternative mortgage solutions. Having a lender who can explain how to speak to multicultural borrowers and has the products to offer is crucial. What was once a niche market is now the market.

By Shannon Hunter

T O

New DocMagic Offering Eases Paperless eClosings

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

DocMagic Inc. has debuted AutoPrep, a new technology that enables the company’s Total eClose platform to accept documents from any source–including non-eenabled documents. AutoPrep leverages sophisticated artificial intelligence, OCR and machine learning technologies to scan and parse documents, locate all signature and notary regions, then electronically tag them for eClosing, thus changing any document into a fully e-enabled document in seconds. As a result, lenders can use loan documents produced by virtually any document provider, from standard documents to partially e-enabled documents, with Total eClose and benefit from the technology’s end-to-end, 100% paperless eClosing process. AutoPrep can learn the nuances of specific documents and adjust accordingly going forward, identify whether signatures are improperly placed or missing, find e-tags placed by other providers, and even read documents that have been partially but not fully converted into e-enabled documents. In addition, because AutoPrep flags documents when it identifies situations that are outside the norm, closing personnel can be more productive by managing exceptions, rather than combing over every page of a document package. “With AutoPrep, there isn’t a single document that cannot be converted into a compliant e-enabled document and brought into Total eClose for electronic signature,” said Dominic Iannitti, CEO of DocMagic. “While eClosings are more efficient, compliant, and enable the level of service consumers expect, they

M A R K E T

aren’t as common as they should be.”

Constant Releases AI Platform To Ease Forbearance Requests

New Black Knight Tool Helps Capture Refi Opportunities

or current first-lien rates. Using the lender’s current pricing–including the most up-to-date market and margin structure–the solution helps deliver multiple personalized pricing scenarios via the CompassPPE pricing engine. Rich Gagliano, president of Black Knight Origination Technologies, said, “Black Knight’s latest data shows that retention rates continue to decrease, which underscores the need for introducing CompassCapture. Rather than reaching out to customers and leads en masse with a generic ‘rates are low, you should consider refinancing’ message, CompassCapture lets lenders use a borrower’s specific attributes and the most up-to-date pricing information to offer a truly personalized option.” Borrowers who refinanced to improve their interest rate or loan term received an average 0.08 percent better rate, which further demonstrates the critical importance for accurate and dynamic pricing. Staying in front of customers and prospects is crucial as well. Competitors are becoming ever more aggressive and successful in their efforts to poach business. With this in mind, but to also avoid spam-like marketing, CompassCapture constantly monitors a lender’s portfolio and lead database to help lenders determine the appropriate time to reach out to a specific borrower based on lender, rate environment and other market triggers.

Black Knight Inc. has launched CompassCapture to help lenders identify specific loans within their portfolio or book of leads that could benefit from a refinance based upon equity positions and/

The Closing Exchange Offering Curbside Closing For Social Distancing The Closing Exchange has unveiled its new Curbside Closing by The Closing Exchange for title agents and lenders to continue to serve their customers amidst social distancing. Effective immediately, The Closing Exchange is offering

Stearns Lending Announces Lender Credit For First Responders

In support of those on the frontlines of the COVID-19 pandemic, Stearns Lending LLC is offering a significant lender credit to first responders who apply for a refinance or mortgage to purchase a home through May 31. The following occupations are eligible: Active military (all branches); members of the National Guard (all branches); members of law enforcement; fire fighters; paramedics/EMS workers; and physicians, physicians assistants, nurses, medical technicians and medical lab personnel. Stearns is following mortgage industry guidelines that provide options to minimize contact during the loan process, providing all borrowers with access to a digital mortgage application, the ability to securely upload documents, alternative home appraisal and employment verification options, and eClose to make closing day as safe as possible for borrowers and closing agents. All mortgage loan originators have the tools to work remotely, so they can continue to provide personal guidance for their borrowers throughout the loan process via phone, e-mail and video chat. “Everyone at Stearns Lending appreciates the dedication and service of all first responders working on the front-lines. We look forward to having the privilege of being able to serve these modernday heroes during this time,” said David Schneider, CEO of Stearns Lending LLC.

Constant has launched an AI-powered software platform for banks and non-bank consumer lenders that provides faster and more accurate decisions about payment deferrals, loan modifications and other workouts. The solution was designed to reduce the massive incoming call volume and long wait times caused by COVID-19 financial hardships. “Whether a lender or servicer is offering to skip payments or a more complex hardship solution, that effort can take weeks or months with the high volume of incoming requests for help,” said Catherine Powers, CEO of Constant. “However, our platform can do it in minutes by engaging with the borrower, evaluating realtime, customer-specific information and automatically creating relief options that solve the problem and encourage payment performance— all within investor parameters.” Constant’s platform evaluates a borrower’s real-time financial situation and provides repayment options and, when appropriate, loan modifications in a matter of minutes, without human intervention.

barrier between the signer and the notary signing agent abiding by the CDC’s social distancing practices. New Custom E-mail Marketing Tool From OptifiNow

Curbside Closing as a signing option during the COVID-19 crisis. “Our Curbside Closing provides clients and their customers the peace of mind of a germ- and stress-free signing experience in a time where stress levels are high,” said Alan Frelix, CEO of The Closing Exchange. “Abiding by the Centers for Disease Control and Prevention’s social distancing guidelines, our Curbside Closing option allows the signer(s) to sign the documents at a convenient place and time without the need for a signing agent to enter the signer’s home or to meet face-to-face without a protective barrier.” Curbside Closing by The Closing Exchange is the same as a mobile signing, except the notary signing agent and the consumer will not conduct the signing or the notarization in the same room. The notary signing agent will meet the signer(s) at the desired location, but the entire signing will be held with a

OptifiNow has created My Touchpoints, a new feature that enables users to quickly create branded, professional marketing e-mails and instantly send to targeted lists of recipients. “Businesses need to get their message out to prospects in a targeted and efficient manner,” said John McGee, CEO and founder of OptifiNow. “My Touchpoints allows every salesperson to be their own marketer. Salespeople know their customers best and My Touchpoints lets them create powerful custom email messages with just a few clicks.” My Touchpoints creates custom e-mail marketing messages in three steps. Users select from a library of images, choose from three different layout templates and type in their desired text. Users can create and save a library of e-mails to provide them with a range of custom marketing messages. In

order to maintain brand consistency and monitor messaging, My Touchpoints can be set up with a compliance review process that allows managers and marketers to preview and approve e-mails before they can be sent. Once a My Touchpoints custom e-mail has been created, it can be sent to a single recipient or in batch to a large list using OptifiNow’s “One Touch” e-mail feature. Targeted lists of recipients can be created to allow users to hone their message to a specific segment. Appraisal Logistics Rolls Out New Social Distancing Inspection Tool

only appraisals in a variety of circumstances, lenders are still finding the need to order interior inspections,” said Frank Danna, CEO of Appraisal Logistics. Appraisal Logistics developed the software, which allows the consumer to take interior photographs using any web-enabled device equipped with a camera. There is no app to download and consumers are provided with simple instructions. The technology collects geocoding information and other metadata to ensure that the photographs are of the subject property and then makes them available to the appraiser for use in arriving at an opinion of value. LoanLogics Launches New Digital Assistant

Appraisal Logistics has rolled out Property Vision, an appraisal inspection tool to empower appraisers with consumer-provided photographic data. Property Vision assures borrowers that their lender cares about their safety and gives lenders fully compliant real estate valuations, all while keeping appraisers out of harm’s way. “While the government has offered the industry the option of using desktop and exterior-

LoanLogics has launched IDEA OnDemand, a cloud-native digital assistant that helps originators automate the processing of loan documents on an as-needed basis and reduce staff costs. Available for use on documents associated with individual loans, IDEA (Intelligent Data Extraction and Automation) OnDemand is a highly secure technology that uses machine learning to classify loan documents and extract loan data in just seconds. IDEA 37

In today’s mortgage banking industry, you have a choice: you can play “follow the leader” or you can be a leader ...

Lykken on Lending

LENDING CRITERIA

Lykken on Lending brings forth the major players in mortgage banking for provocative and insightful conversation. This is the only mortgage banking indust leaders speak directly without being edited or media outlet where industry ﬁltered by agenda-driven third parties.

Covering Topics from Main Street to Wall Street and Capitol Hill

Listen LIVE Coast to Coast

866-668-2663

Mondays at 1:00pm Eastern/10:00am Paciﬁc, or dial in and listen at (646) 716-4972 or (877) 666-9318

Send Scenarios to

info@CalHardMoney.com

Download the Podcasts of Previous episodes any time at David Lykken

n National Mortgage Professional Magazine n MAY 2020

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

Created by a mortgage professional for mortgage professionals, Lykken on veteran Lending is a weekly 60-minute radio program hosted by mortgage veteran, David Lykken. Joining the program each week is Joe Farr with a MARKET UPDATE, Alice Alvey providing a LEGISLATIVE UPDATE and Andy Schell (a/k/a "The Proﬁt Doctor") providing tips on FINANCIAL MANAGEMENT along with other regulars and featured guests.

NationalMortgageProfessional.com

Direct Private Money and Bridge Lender specializing in Stated Loans in CA

With a 43-year career in mortgage lending, David Lykken is one of the most respected business leaders in the industry. He created Lykken on Lending in 2009 to offer his mortgage industry professionals an insider’s view of the trends, issues and personalities that impact mortgage banking and the wider economy.

New Vista Solutions Releases FastTrack Bundle

OnDemand can identify more than 400 different document types and extract more than 8,000 individual data elements, with many critical documents and data elements achieving over 95% accuracy. It includes an exception management tool that enables lenders to address document and data extraction discrepancies in real-time. “For too long, loan originators have struggled with costly and error-prone manual processes when it comes to validating and verifying loan documents,” said Dave Parker, LoanLogics’ chief product officer. “IDEA OnDemand offers originators the opportunity to see how our intelligent classification and data extraction technology can greatly reduce the time and effort they spend on processing documents for individual loans. Significant benefits result from redeployment of staff to more meaningful work and minimizing document processing tasks to simply managing exceptions. There is nothing else on the market like it.”

New Vista Solutions has announced FastTrack, a new product for refinance and home equity lenders that reduces costs and the time required to close loans. FastTrack is a bundle of settlement services that can be customized to fit each lender’s specific operational guidelines. The available settlement products are designed to accelerate the loan closing process, while maintaining compliance and cutting the cost of traditional settlement products and services by as much as 70%. One of the featured products within the bundle automates the process of acquiring employment, income and asset verification. Lenders can choose from a variety of products such as a flood determination, a residential evaluation (warranty is optional), a hybrid appraisal (USPAP compliant) and a warranted title search. FastTrack also offers a title search with recordation, with a warranty on both services (FastTrack TSR).

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Home equity lenders can also add a Property Condition Report (PCR) and a Mortgage Loan Report. IDS Opens Help Center To Enhance Mortgage Doc Prep Customer Service

International Document Services Inc. (IDS) has opened a comprehensive, digital help center in its continuing efforts to enhance client support. The help center is part of Zendesk, a customer service platform IDS converted to in May 2019 to streamline the support process. “Expanding our help center allows our team to communicate better and quicker internally and with our clients. It also provides our clients the opportunity to clearly see what is happening with their support requests, as well as easy access to all IDS resources,” said IDS Vice President and General Manager Mark Mackey. The help center allows customers to submit client support requests and see content and updates related to the submitted request. Additionally, clients can explore IDS content including FAQs, release notes, the state disclosure matrix and compliance updates.

Internally, IDS Client Support representatives are able to tag old tickets by topic for easy sorting and reference, creating a repository of common support questions to enable faster support resolution.

Your turn

National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: 860.719.1991 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.

National Mortgage Professional magazine has a new feature – and we want to hear from you!

● $100,000 to $5 mil - 75% LTV - Fixed Rate ● TEMPLES, SYNAGOGUES, ALL HOUSES OF WORSHIP ● No personal guarantees & no prepayment penalties ● Originator Quote protected against circumvention for 45 days

Visit our website to pre-qualify and request a FREE QUOTE BONUS: A loan to a house of worship opens the door to residential mortgages for their congregation members

Concord Church Lenders

www.concordchurchfinance.com

800-926-0399

Think back on your career – what is the best deal you ever made? But here’s

the twist. We’re not talking about your biggest deal. We want to hear about your best deal – the one that resonates with you personally, the one that became the story you’ve told again and again about why you’re in this business. You know what we’re talking about: the deal that makes for a great story! If your deal is selected for publication in NMP, you’ll receive a $100 Amazon gift card!

Connect with us! bit.ly/MyBestDeal

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n MAY 2020

Credit: sharply_done

YOUR CULTURE MATTERS:

What Kind Of Cultural Advisor Are You?

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

“In these times of moral conflagration, disruptive conflict and apprehension, we are lost in the great fog together, and a fog of war is not the fog we want to be stuck in–for that is the one we created and developed ourselves through our own fears.”

By Jay Doran

ontradictions are easily formed, especially when we become caught in our own net cast toward another. This is because we can see in another more clearly what lacks in ourselves. In turn, we move toward a resolution for those we pass judgment on, but with consequence to ourselves. When we execute on our target’s weakness, then we become strong, or so we think. Rather than think, we feel our way to conclusions, and this marks the beginning of the end of any possibility of unifying the party we aim to fix along with ourselves. Our external win is an internal loss. The outcome becomes exactly what we want, which is the end of our target, yet the cost is greater than our ego would let us recollect: desolation of our moral responsibility to ourselves. The surest way to lose our footing on right and wrong is to focus on alleviating another of their limitations. This leads to the lack of our selfintrospection and the responsibility to take record of what we have been doing well or could be improving on. All things considered, it is almost a neutral state to focus on everyone but ourselves, i.e., our employee, mentee, mentor, individuality, group, company or any tribe acting or thinking on contrast to another. It is this circumstance of psychological contradiction that we see occurring in the mortgage industry. We have large groups of people and of all walks of life vying for a voice and a resolution to their questions and concerns of the future. Questions like: “What does the future hold for my role?” or “How many years will I continue being uncertain about my role in this industry?” or “Will fintech take my job?” or “Do I really need to use social media?” or “When will this constant conflict between my peers end?” or “How will this affect the customer or my bottom line?” These and many more questions plague the mind

of the originators, parents, spouses, lenders, wholesalers and retailers alike. In these times of moral conflagration, disruptive conflict and apprehension, we are lost in the great fog together, and a fog of war is not the fog we want to be stuck in–for that is the one we created and developed ourselves through our own fears. Nothing good comes from casting scorn at another, especially when you know you have not made your own bed. It is time to take responsibility for your own actions. How, exactly? The answer is complicated at length, but simple in its inception. You must stop seeking answers and start asking new questions. It is not, “What is wrong with them?” or “How can they do more for me?” but “What am I not doing that I could be doing?” and “How can I do more for myself?” Change the focus from others and you will see yourself clearly again. Stop seeking answers to questions that pop up out of focusing on everyone else and start asking questions that come from your own value system, that is responsibility–take responsibility. A beloved leader, John F. Kennedy, once said, “Ask not what your country can do for you—ask what you can do for your country.” Today, it is not, “What can a lender, partner, broker, etc. do for you?” but, what can you do for them that will make the mortgage industry better. Collaboration always wins and this is something we can all get behind together. If you want to be considered better, then act better and you will not care either way. In the end, remind yourself that focusing on another’s limitations alleviates responsibility for you to take notice of your own limitations. On the other side of your own reflection lies your growth. Change your questions and get new answers. Our homebuyers need their very own cultural advisor … you!

Jay Doran is CEO at Culture Matters LLC, where he helps business owners define their company’s values and increase their confidence to lead both personally and professionally. Doran is also the author of Thirty Days of Thought: Culture Matters.

Start Building Stronger Business Relationships Today.

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n MAY 2020

National Mortgage Professional Magazine is “The Source for Top Originators” - that connects the mortgage professional community under various media formats. Our exceptional team of industryseasoned monthly contributors combined with our knowledgeable editorial staff, all with meaningful expertise in their respectful disciplines, provide the most up-to-date news, insight and advice for today’s mortgage professional. We are committed to ensuring that today’s industry is equipped with the most comprehensive understanding of mortgage news available through our many resources, including, but not limited to, To learn more about articles in the print and digital edition of National Mortgage Professional Magazine, NATIONAL MORTGAGE PROFESSIONAL the nmp Daily and NMP Ticker email newsletters, the exclusive daily news stories or to customize a marketing program unique to your business needs, call 860-719-1991 or and postings on NationalMortgageProfessional.com, the industry first “television” email bbolnick@ambizmedia.com. channel, Mortgage News Network and our regular series of original Webinars.

The COVID-19 Crisis And Credit Reporting

Credit: zoranm

By Terry W. Clemans

The impact of COVID-19 is everywhere, dominating the news and our lives. The credit reporting industry is no different and has made changes to accommodate the needs of Americans struggling to deal with the economic fallout from this devastating pandemic.

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

In this article, we will look at both long-standing industry procedures, as well as specific COVID-19-related developments, that will likely impact you or those you know.

or many years, the credit reporting industry has had programs in place to eliminate or greatly reduce the impact to a consumer’s credit history in the case of disasters or other extreme events. Metro 2 is the data format developed by the Consumer Data Industry Association that all three national credit bureaus and more than 15,000 furnishers of credit information to the bureaus utilize. It has built-in codes designed to report deferred payments and forbearance programs that have helped millions of consumers since before the tragedy of Sept. 11, 2001, by providing credit reporting protection to help relieve consumers in financial distress from hurricanes, floods, fires, tornados and now, COVID-19. All of the federal agencies, and many state and local regulators, have issued a variety of guidance principles and we will cover some of the most important for lenders and creditors, starting with the March 22, 2020 “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.” Sourced from five key federal agencies and state regulators, the guidance encourages lenders and creditors to work with consumers unable to make full payment terms during this public health emergency. This was backed up by Congress passing the Coronavirus Aid, Relief and Economic Security (CARES) Act on March 27, 2020. Section 4021 of the CARES Act amends the Fair Credit Reporting

Act so that furnishers of information to credit reporting agencies who agree to account forbearance, or agree to modified payments with respect to an obligation or account of a consumer that has been impacted by COVID-19, report such obligation or account as “current” or as the status reported prior to the accommodation during the period of accommodation unless the consumer becomes current. This applies only to accounts for which the consumer has fulfilled requirements pursuant to the forbearance or modified payment agreement. Such credit protection is available beginning Jan. 31, 2020 and ends at the later of 120 days after enactment, or 120 days after the date the national emergency declaration related to the Coronavirus is terminated. When properly reported, these accounts will be calculated in a “neutral” fashion by both FICO and VantageScore to have no adverse effect from COVID-19 on the credit score. To help mortgage servicers explain the COVID-19 payment options, Fannie Mae and Freddie Mac published scripts that should guide how servicers of loans backed by those two enterprises in their communications with homeowners. FHA Mortgagee Letter 2020-06, published April 1, 2020, provided flexible communication policies for forbearance and also made the FHA partial claims process the primary means of post-forbearance loss mitigation/loan modification for those who have recovered from COVID-19 hardships.

The Consumer Financial Protection Bureau also issued guidance on April 1, 2020, “Statement on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act,” that provided CARES Act instructions, combined with some relief to the consumer reporting industry that may have difficulties in processing consumer disputes with limited staff and limitations on the ability to access the data sources needed in the Fair Credit Reporting Act required timelines. Obtaining public records from many of the nation’s county courts is problematic, as they are struggling to keep up with limited workforces or completely closed departments. The CFPB states the consumer reporting industry must show “good faith efforts” to investigate disputes as quickly as possible to avoid being cited in an examination or being brought in for an enforcement action if dispute investigations take longer than the statutory timeframe required. This relief was not received well by many state Attorneys General, as 23 jointly requested the CFPB to withdraw the relief provisions in a combined letter sent on April 13, 2020 to Kathy Kraninger, director of the CFPB. The Department of Housing & Urban Development issued

guidance on March 20, 2020, Lender Letter 20-04, for mortgage services, landlords and property managers, creating a foreclosure and eviction moratorium. Many states and local municipalities have also issued similar ordinances, providing consumers relief from being unable to pay their mortgage or rent during the pandemic. The full HUD COVID19 site can be found at HUD.gov/ Coronavirus, and is complete with links to many other helpful federal Web sites dedicated to pandemic relief. And of course, no disaster could possibly be free of scammers and con artists who are scheming on ways to separate you from your CARES Act stimulus money or any other funds they can get from you. COVID-19 scams are so rampant right now the FTC has a full site dedicated to trying to protect people from further harm: Consumer.FTC. gov/Features/Coronavirus-ScamsWhat-FTC-Doing. To ensure proper credit reporting documentation with the CARES Act and specific guidance in the Metro 2 reporting, please review your credit reporting policies with whichever credit bureaus you report to and your legal and/or compliance teams. Please stay safe, protect yourself, your family and co-workers from the impact of this worldwide health crisis!

Terry Clemans is executive director of the National Consumer Reporting Association. He may be reached by phone at (630) 539-1525 or e-mail TClemans@NCRAInc.org.

Where Is the Industry Heading Post-Pandemic?

Don’t Pause, Pivot: Leveraging Technology To Stay Connected In A Touchless World

CONTINUED FROM PAGE 14

CONTINUED FROM PAGE 25

if we stay focused as an industry and a country. I do

think that there will be new ways of doing business that we haven’t experienced yet. Our industry needs to take this opportunity to modernize quickly and nimbly, work differently, then we can think about when things will be better. Faith Schwartz: The dislocation and unemployment is frightening for consumers and having time to breathe through this is very important. If and when a consumer can refinance, I always recommend it if they get a net tangible benefit and can have more cash on hand with extraordinarily low rates. So, I would refinance if it makes sense. I am still a believer in the system, the breadth of opportunities for consumers and I know we will have an economy that gets stronger again. Paul Anselmo: We really don’t know when we’ll see another market like we had in January. There was a lot of “unfinished business” when the pandemic hit. At the Structured Finance Industry Group conference in late February, it was suggested that this segment of the industry was about to explode, and with the removal of the QM patch, many were preparing for that to happen. Then the market evaporated. Whether and when consumer habits will rebound depends on the success of mortgage relief efforts, as well as the impact of the Paycheck Protection Program on continued employment and reemployment. I think these two factors combined will determine that timeline. The other variable, of course, is how long the quarantine lasts and whether the rules tighten more.

According to LinkedIn, its platform has more than 660 million users. Use it to educate your target market on industry news and its impact on the origination process. Market dynamics change rapidly, and this is an opportunity for you to serve previous and prospective borrowers by sharing your expertise.

Tips For Effective E-Mail Marketing Campaigns

suggests the ideal length of an e-mail is between 50 and 125 words. However, if you must, include multiple paragraphs. Try to present only one new idea per paragraph. E-mail service providers like MailChimp and Constant Contact provide free e-mail templates. Do your research and decide which is best for your business. A mobile-responsive e-mail template will save you time and help increase your brand awareness.

According to research, the average Personalized And Humanistic professional checks their e-mail 30 times every Maintaining a personalized, humanistic hour. Research shows the average user looks approach to your marketing efforts is key. at a phone more than 1,500 times a week. Align your message with one of inspiration and Therefore, it is no surprise that despite it being contribution. Avoid any fear-based approaches a relatively traditional marketing medium, an and choose your words wisely. This means effective e-mail campaign produces great carefully incorporating language that reinforces results. feelings of safety and stability. Take a moment to review your personal Remember, we are all looking for ways to e-mails. Pay close attention to the differences minimize the economic impact of this crisis, between the messages received from small while simultaneously reeling from its impact. As to large corporations. Consider why you sales and marketing professionals, it is difficult open some and ignore others. E-mail open to walk this tightrope of tragedy and business rates are largely determined by two things: continuity. However, in our undeniable Subject lines and the e-mail sender name. resilience comes hope. Continue offering value Short, personalized, subject lines with a to your audience, they may need you now, conversational tone typically see high open more than ever. rates. Remember what I said about attention Shakria Hall is brand marketing manager at Calyx, an spans of eight established provider of compliant mortgage software seconds? Keep your solutions used by banks, credit unions, mortgage lenders e-mail simple; include and brokerages nationwide. She may be reached by e-mail subheadings and at Shakria_Hall@CalyxSoftware.com. bullet points. Research

How To Stay In The Game By Leveraging Tech CONTINUED FROM PAGE 28

“Now is a great time to expand your network by joining groups of interest, listening in on educational video/podcasts (or starting your own) and actively engaging with others within and beyond your circle to build your knowledge base and add to your level of expertise.” Leadership Taking An Active Role As we move into the new way of doing business, it is important that companies demonstrate behaviors that help drive cultural alignment. Companies and heads of corporations need to effectively integrate themselves and harness the power of digital marketing into every facet of their business, starting with leadership. C-suite executives need to see themselves as role models and become actively involved in the digital stratosphere—acting like true ambassadors of a new age, and leading their people by example. These leaders will have a tremendous impact on the overall company culture by demonstrating their ability to

readily and willingly adapt to the everchanging landscape—which will have the positive side effect of positioning themselves as progressive thinkers of the industry, keeping with the times and staying well-ahead of their competition dwelling in the past. One Final Note There is an old proverb: “May you live in interesting times.” Like it or not, we live in interesting times. They are times of uncertainty, but they are also times that will help us unite, adapt and apply the creative energy within all of us to formulate solutions and navigate this ever-changing landscape. Consider it the new frontier, and we are the pioneers.

Paul Lucido is the chief marketing officer for Paramount Residential Mortgage Group Inc. (PRMG). He is a seasoned veteran with more than 22 years in the mortgage banking business. Paul hosts a regular book review podcast “Take Five” at #takefivewithpaullucido. He may be reached by e-mail at PLucido@PRMG.net.

n National Mortgage Professional Magazine n MAY 2020

Leveraging Your Distribution Channels • E-mail marketing: This is perhaps the most widely used tool to effectively communicate with expansive audiences. Rather than pitch or attempt to sell, put out useful content that can help others learn how to navigate this new territory themselves. Such content can pull from your specific level of expertise, relative to your company (such as facts about how the use of your product or service has evolved in recent times), and how your audience might be able to adapt accordingly. Or perhaps, it’s something more personal, such as how to work from home, manage your time or maintain productivity. It could even consist of tips on how to successfully leverage e-mail marketing. Whatever it is, it is important to remember that people are looking for answers and guidance right now, and this is a prime opportunity to build trust. • CRM: As a wise man once told me, “The best CRM is the one you

actually use.” If you are going to be a digital marketer, then you need to have a reliable customer relationship management tool to help you create content and deploy it! There are many good platforms out there that can deliver the fundamentals—some even provide workflows with triggers that dispatch directly to your customer via SMS text messaging to create a call-to-action. If used correctly, a good CRM will be the hub of all your digital marketing. An important formula to remember is: Reach x Frequency = Gross Number of Impressions! It may sound basic, but it’s easy to forget in such challenging times, where your audience seems to have vanished overnight, and reaching out feels harder than ever before. • Social media: Leveraging social media is a cost-effective, quick and easy way to make a splash and gain traction! Platforms such as Facebook, LinkedIn, Instagram, Twitter and YouTube (the number two search engine), are powerful channels that allow you to maintain an online presence and stay connected to many different audiences. Now is a great time to expand your network by joining groups of interest, listening in on educational video/podcasts (or starting your own) and actively engaging with others within and beyond your circle to build your knowledge base and add to your level of expertise.

NationalMortgageProfessional.com

seasoned marketers may have up their sleeves, applying them will be useless unless they utilize their soft skills to become effective and active listeners, readers, and authors of compelling content. So, you’ve written your content and you’re developing your soft skills. Now you are ready to deploy your strategy!

A Clear Look At Transparent Leadership

By Kristi Pickering

ransparent leadership is one of the most important things that loan officers look for in a mortgage employer. This may never be truer than now, as mortgage professionals across the United States are turning to their company leaders for information and guidance to navigate the challenges that the housing and mortgage lending markets are facing as a result of the COVID-19 pandemic.

It can be easy, however, for mortgage companies—or any company for that matter—to come up short in this area. Leaders may have valid reasons for withholding information, like concern about panicking employees or a need to maintain greater control of the situation. But mortgage employers definitely should not use “shelter-in-place” orders or locked doors at physical headquarters and branch locations as an excuse to not be transparent with loan officers and other employees with the abundance of technological resources at our fingertips. A transparent leader’s virtual doors are always wide open. At the end of the day, especially in changing and uncertain times, there are more pros to transparent leadership than cons.

What does transparent leadership look like?

A transparent leader is not someone who indulges in the culture of oversharing, posting every intimate detail of their day on social media. Transparency is strategic, targeted and purposeful. Frequent and honest communication Employee satisfaction survey after survey shows the significance of keeping employees in the loop. In the mortgage world, loan officers want to know the details of loan program adjustments, policy changes, overall company performance, etc. in an uncertain market—the good and the bad. No one likes surprises when it comes to company and market stability.

Mortgage professionals realize that some information must be held close to the vest to avoid divulging a lender’s competitive advantages. It’s okay for a leader to say that certain information cannot be discussed at this time, but will be communicated later. But sharing key company metrics, benchmarks and goals allows loan officers and entire teams to link their own performance with that of the company, to personally invest in and own their role in helping the company reach the desired outcomes. This can also provide clarity on the reasoning behind major decisions and changes.

MAY 2020 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

Frequent communication is critical to setting crystal-clear expectations and measuring progress toward achieving them. This helps to avoid all-too-common misunderstandings, false assumptions and unmet expectations. But honest communication is a two-way street. Transparent leaders welcome feedback through one-on-one meetings, employee engagement and satisfaction surveys, and even comments on social media posts and live Web sessions. There are so many ways to communicate today! During this COVID-19 pandemic, with all employees working remotely, Academy Mortgage’s leaders are providing company updates via weekly Town Halls broadcasted nationwide, daily video market updates, frequent e-mails, dedicated Web sites, internal communication platforms, etc. Their intent is to quickly communicate and be as accurate and transparent as possible in sharing information as it continually and rapidly comes in. Direct access to leadership Transparent leaders practice what they preach. A true open-door policy means a leader answers their phone, promptly returns calls, and responds to e-mails and texts. They then set the standard to be followed by the company’s entire management team. Proactive, not reactive Transparent leaders show a willingness to be flexible and to listen to and incorporate feedback. They are nimble yet strategic, and respond to everevolving conditions with agility and optimism.

How do loan officers benefit from transparent leadership?

Mortgage lenders should continue new communication practices and behaviors to be more transparent. We likely will see differences in the way we work together after this pandemic. Leaders must commit to transparent communication for the company and its loan officers to reap the long-term benefits. Trust, autonomy and confidence Perhaps the number one benefit of transparent leadership is building trust. There is no question leading with transparency can leave someone feeling vulnerable, but employees will reward their leaders’ humility with their loyalty and trust. For loan officers, trust translates into autonomy and confidence. A transparent leader gives the loan officer the information they need, trusting they will use it to confidently make their own business decisions at the local level. Align personal values with company values and goals Loan officers who see their own personal values reflected in the words and actions of their leaders are more likely to stand behind and support the company’s overarching purpose and vision. Transparency is a powerful unifier, which in turn, encourages loan officers and their teams to work smarter and harder toward a common goal. Improved production and team performance As greater transparency fosters greater advocacy, highly-engaged loan officers and employees are more likely to achieve higher performance and productivity. Open discussion with leaders and knowing they have all the information they need enables teams to work together quickly and effectively to solve problems and make decisions. Teams are built faster and relationships grow more authentically in a culture of trust and transparency. It is energizing to feel a part of a cohesive team. There is also an increased sense of accountability, as sales teams clearly know what is expected of them and want to give their best efforts to see the company thrive. A reason to stay When transparency is a priority at their company, loan officers feel trusted with information and decision-making authority, and as a result, they feel valued. They know their opinions matter and their feedback is being heard. There is less uncertainty about the future as they are informed about their leaders’ plans, objectives and strategies for moving forward. Transparent leadership binds a company through integrity, openness, and loyalty.

Provide personal support In times of duress, there is nothing more meaningful to an employee than knowing their employer has their back. Transparent mortgage leaders get to know their loan officers and other employees personally. They want to make personal connections and be a friendly source of motivation, encouragement and empathy.