National Mortgage Professional Magazine November 2018 by ambizmedia

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N A T I O N A L

Identity Theft Prevention: How to Catch a Thief By Jonathan Foxx, Ph.D., MBA

N O V E M B E R

24 NMP’s Legends of Lending: New American Funding By Phil Hall

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M O R T G

V O L

A SPECIAL FOCUS ON “A SALUTE TO THE HEROES OF HOMEOWNERSHIP”

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Working With Veterans Means Going Above and Beyond for Clients By Ray Brousseau ............................................................74

Basic Training for VA Lending By Kenneth Capling ........................78

A L

How Mortgage Professionals Can Support the Military By Rear Admiral Tom Lynch, USN (Ret.) ............................................80

VA Community Involvement: Serving as a Resource Beyond the Close of the Loan By Carol Pope ..............................................82

Land of the Free Because of the Brave! By Mary Kamelle ..............84

How My Service in Vietnam Aided My Career By Ira Lynn Karnofsky ........................................................................86

40 National Mortgage Professional Magazine Presents … The Best Military Lenders and Originators 2018

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Lending to Veterans By Casey McGovern ........................................88

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Serving Those Who Serve By Geetesh Kapoor ................................90 Serving Active Duty Members? Meet RON. By Rick Triola ..............92

What Military Men and Women Should Know About Their Credit By Rory Tipton ..............................................................94

Lender Education Is Key With VA Loans By Todd Jones & Mike Eshelman ......................................................96

America’s Heroes Achieve the American Dream By Kelcey Brown ................................................................................98

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A Star-Spangled Mortgage By Eric Weinstein ..................................99

FEATURES

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ARMCP Membership Hits the 1,600 Mark ........................................6

60 MBA’s 2018 Annual Convention Survey: A Report of Findings By Tom LaMalfa

Non-QM Specialists Should Befriend Main Street Bankers By Tom Hutchens ......................................................8

V I S I T Company

Web Site

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5 Arch Funding Corp. ........................................5arch.com/NMP ..............................................................11 Angel Oak Mortgage Solutions ............................ www.angeloakms.com ......................................Back Cover Avantus ............................................................ www.avantus.com ........................................................93 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................77 Caliber Home Loans.............................................. www.caliberwholesale.com ..............................................23 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................35 & 76 Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................17

66 A Five Part System for Generating More Realtor Business By Brian Sacks

Class Appraisal .................................................. www.classappraisal.com ................................................15 DocMagic .......................................................... www.docmagic.com ........................................................9 Fund Loans........................................................ www.fundloans.com ........................................................7 Greenbox Loans, Inc........................................... www.greenboxloans.com ..............................................IFC Lykken On Lending ............................................ www.lykkenonlending.com ............................................94 MBS Highway .................................................... www.mbshighway.com/MNN ........................................101 Mortgage Assurance, Inc. .................................. www.maibroker.com ......................................................83 Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................64 & 65

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The Elite Performer: If You Are Capable, You Are Accountable By Andy W. Harris, CRMS ......................................8

Recruiting, Training and Mentoring Corner: VA: The Most Important Question By Dave Hershman ..........................10 Targeted Audience............................................................................16 Amendments to the New Jersey Residential Mortgage Lending Act By Gavin T. Ales ............................................................18 NAMB Perspective ............................................................................26 Compliance Matters: Property Inspection Waivers By Brandy George ..............................................................................34 The Mortgage Godfather: Rates … Who Cares!? By Ralph LoVuolo Sr...........................................................................36 Where the Housing Counseling Industry Can Provide Unique Benefit for Independent Mortgage Originators By Pam Marron ....58 Tony’s Corner: A Message From NAMMBA Founder & CEO J. Tony Thompson III, CMB ..................................................68 MBA’s Mortgage Action Alliance ....................................................69 Diversity During a Challenging Mortgage Market By Debora Aydelotte ..........................................................................70 BrokerNATION: Access Home Mortgage: Scott Tennant By Andy W. Harris, CRMS ..................................................................72 Embrace of Automation Threatens the Livelihood of Brokers, Originators, Mortgage Partners and Others By Bryan Caffrey & Chris Roberts ....................................................102 What’s Past Is Prologue By Laura Baucus & Robert Hugh Ellis......104 How to Expand Your Mortgage Brokerage Business Across State Lines By Eric Weisbrot ..............................................106

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

Web Site

Page

NAMB+ ............................................................ www.nambplus.com ......................................................19 NAMB Focus ...................................................... www.namb.org ..............................................................29 NAMMBA ..........................................................www.nammbaconnect.org .............................................. 97 NAPMW ............................................................ www.napmw.org ....................................................73 & 89 NAWRB ............................................................ www.nawrb.com ............................................................95 New American Funding ...................................... www.newamericanfunding.com ....................................112 NMP U .............................................................. www.nmpucoaching.com ........................................55 & 91 NRMLA.............................................................. www.nrmlaonline.org ....................................................96 OSI Express........................................................ www.osiexpress.com/mlslink ............................................1 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................13, 87 & Inside Back Cover Quicken Loan Mortgage Services.......................... www.qlmortgageservices.com/strongertogether ................5 REMN................................................................ www.remnwholesale.com ..............................................39 Ridgewood ........................................................ www.ridgewoodbank.com ..............................................79 TagQuest .......................................................... www.tagquest.com ........................................................81 United Wholesale Mortgage ................................ www.uwm.com ........................................................56-57

are you nominated? We are seeking nominations from our readers for National Mortgage Professional Magazine's "40 Under 40" feature, slated to appear in our December 2018 edition. Anyone who is under the age of 40 and has had a major impact on the industry can qualify for this feature. This could be through innovation, association participation, sales force automation, community activism, management techniques, technology or any other significant method that has influenced our industry. We would need a short, three-line bio on the nominee, along with a color photo and company contact info to complete the profile. To nominate yourself or someone else, visit https://nationalmortgageprofessional.com/under-2018.

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NOVEMBER 2018 Volume 10 • Number 11

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

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SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@mortgagenewsnetwork.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. 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 Mortgage News Network Inc., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by Mortgage News Network Inc., NAMB, NAPMW, NCRA, and other state mortgage trade associations. National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in Mortgage News Network Inc. publications. National Mortgage Professional Magazine and Mortgage News Network Inc. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.

FROM THE

publisher’s desk

A salute to our heroes Every month in the pages of National Mortgage Professional Magazine, we bring you stories about men and women I consider to be true heroes. They are on the ground, doing the hard work to help Americans realize the dream of homeownership in communities all across our country. That’s heroic work, and I tip my hat to anyone who engages in it. But like anything, there are degrees to heroic activity in our business. When you help an active U.S. serviceman, serivcewoman or veteran get a mortgage so they can buy a home of their own, that’s taking the concept of “Housing Heroes” to a higher level. In this issue, we feature, for the very first time, some of those in our industry who serve our nation’s veterans. I’m very proud to highlight their service to those who have served us all so well. But that’s not all we’ll be bringing you on this important topic this month. We have a number of great articles for you in this issue, all focusing on the industry’s heroes of homeownership. First, lest we forget, read “Land of the Free Because of the Brave!” by Mary Kamelle, Marketing Manager at Mortgage Equity Partners. We should all remember the sacrifices these brave men and women have made for all of us. It makes serving veterans all the more rewarding. But before you write that first VA loan, get some basic training. Count on Kenneth Capling, Corporate Fulfillment Support at American Financial Resources (AFR) to serve as your drill sergeant with his article, “Basic Training for VA Lending.” Then it’s time for strategy. We bring you some great articles to help you decide how you will work to benefit these heroes. Start with “How Mortgage Professionals Can Support the Military,” by Rear Admiral Tom Lynch, USN (Ret.), Executive Chairman of NewDay USA. He also serves as CoChair of the NewDay USA Foundation, which gives him a perspective we can all learn from. Lest you think that serving these borrowers is like financing any other, read “VA Community Involvement: Serving as a Resource Beyond the Close of the Loan,” from Carol Pope, Territory Manager for Land Home Financial Services, and “Working With Veterans Means Going Above and Beyond for Clients: Provide Best-in-Class Customer Care for Servicemembers,” by Ray Brousseau, President of Carrington Mortgage Services. To dial in your service for veterans, check out this trio of articles: l ”Lending to Veterans: The Best Ways to Serve Those Who Served” By Casey McGovern, Founder, Managing Director and Board Member of Bay Equity LLC; l ”Serving Those Who Serve “ By Geetesh Kapoor, Producing Branch Manager for Fairway Independent Mortgage Corporation; and l ”Serving Active Duty Members? Meet RON.” By Rick Triola, Founder and Chief Executive Officer of NotaryCam.

And don’t forget the educational component, both for the partners you work with in the industry and for the veterans you serve. Check out “What Military Men and Women Should Know About Their Credit,” by Rory Tipton, Lending Solutions Sales Manager for Data Facts Inc. And don’t miss “Lender Education Is Key With VA Loans,” by Todd Jones, President of BBMC Mortgage & Mike Eshelman, Head of Consumer Finance at Jornaya. Success stories can be both educational and inspirational, so read “America’s Heroes Achieve the American Dream,” by Kelcey Brown, Chief Strategy Officer and Executive Vice President, Webmax. And to get a unique perspective on this business, read “How My Service in Vietnam Aided My Career,” By Ira Lynn Karnofsky, Real Estate Analyst for Velocity Mortgage Capital. Ira is Vietnam veteran who was awarded the Bronze Star with Valor. This month, Eric Weinstein brings us “A Star-Spangled Mortgage.” His writing always makes us ponder, and we’re proud to have him in this issue. If that is not enough on what the industry is doing to serve our veterans, tune into Mortgage News Network for its new series “Homeownership Heroes,” sponsored by Caliber Home Loans. This series features Bryan Bergjans, National Director of Military and VA Lending for Caliber Home Loans, with appearances by NAMB President Rick Bettencourt, discussing how the industry serves those who have served our nation. Episode topics range from VA underwriting, to understanding some of the intricate details of Military Leave and Earning Statements, all geared toward educating today’s mortgage professional on helping active and veteran military members attain the dream of homeownership. For more information, tune into MortgageNewsNetwork.com and click on the “Homeownership Heroes” link. Speaking of success stories, this month’s Legends of Lending profile features a chat with three execs from New American Funding: Chief Executive Officer Rick Arvielo, Senior Vice President of National Retail Sales Sam Ellsworth and National Vice President of Multicultural Lending Frank Fuentes. New American continues to do great things for the industry and outside of the office, and we are happy to spotlight them this month. If you’re planning on attending the upcoming NAMB National event, don’t miss our special coverage in this issue. You’ll find event information and a number of great articles from NAMB Board members. Read their articles, and take your questions and comments to them in Las Vegas. We hope to see you at Caesar’s Palace in Vegas and stop by our booth on the Exhibit Hall floor to say hello. And, as always, you’ll find all of the great departments we always give you, including a very interesting article from Jonathan Foxx entitled, “Identity Theft Prevention: How to Catch a Thief.” Jonathan always brings us compliance information that helps our readers mitigate risk in an era of heightened security. Not that risk slows down real heroes. We hope this issue gives you the information you need to build stronger businesses and help more people achieve their dreams. Make sure some of them are vets. After all, they’ve earned it, and you’ll both win. Sincerely, Joel M. Berman, Publisher-CEO Mortgage News Network Joel@MortgageNewsNetwork.com

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

NAMB 2018-2019 BOARD OF OFFICERS & DIRECTORS E X E C U T I V E

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

Rocke Andrews, CMC, CRMS President-Elect Rocke.Andrews@NAMB.org

Michelle Velez, CMC Vice President Michelle.Velez@NAMB.org

B O A R D

George Burkely, CRMS Treasurer George.Burkley@NAMB.org

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

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

D I R E C T O R S

Michael DeSantis Mike.DeSantis@NAMB.org

Wayne King, CRMS Wayne.King@NAMB.org

Linda McCoy, CMRS Linda.McCoy@NAMB.org

Matt Oliver Matt.Oliver@NAMB.org

Marty Pfeiffenberger MartyP@ NAMB.org

Kimber White, CRMS Kimber.White@NAMB.org

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

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

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

2018-2019 NAPMW NATIONAL BOARD OF DIRECTORS

Laurel Knight-Keane National President President@NAPMW.org

Glenda Mooney President-Elect PresElect@NAPMW.org

Tobi Libbra Vice President NVP1@NAPMW.org

Rolanda Legg Vice President NVP2@NAPMW.org

Jaclyn Weedin Secretary NatSecretary@NAPMW.org

Nicole Shea Treasurer NatTreasurer@NAPMW.org

Robin Hart Parliamentarian Parliamentarian@NAPMW.org

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

NOVEMBER 2018 n National Mortgage Professional Magazine n

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2018-2019 BOARD OF DIRECTORS

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

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

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

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

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

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

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

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

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

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

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

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

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

Roy Goodwin Compliance Services Director (630) 539-1525 RGoodwin@ NCRAInc.org

ARMCP Hits 1,600 Mark, Nears Official Site Launch Having just reached the milestone of 1,600 members, the Association of Residential Mortgage Compliance Professionals (ARMCP) is now also nearing completion of its new Web site, a state-of-the-art site designed specifically to fulfill the needs of residential mortgage compliance professionals. The design and development have taken several years to bring to the point of launch. This is just what our organization needs. If you have not yet joined the ARMCP, please contact Jonathan Foxx, ARMCP Founder and President, at Info@ARMCP.org and you will be sent an invitation. ARMCP’s current digital abode is on LinkedIn. The LinkedIn group will be kept while also moving to the larger new home at the brand new site. The association be sending announcements your way soon, via LinkedIn and other media resources, with the membership link. The site is expected to launch officially within the next 90 days. ARMCP is the first and only independent, national organization in the country devoted exclusively to residential mortgage compliance professionals. The association’s independence means it is not affiliated with any profit-oriented enterprise. Membership consists solely of those members who have joined it on their own and were not solicited to join via solicitations from third-party lists or subscriptions. Regular members pay no membership fee … independence is the key to the value of ARMCP’s advocacy! Want to join or create a committee? ARMCP would like to hear from you! For more information, visit ARMCP.org.

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n National Mortgage Professional Magazine n NOVEMBER 2018

Non-QM Specialists Should Befriend Main Street Bankers By Tom Hutchens

NOVEMBER 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

nly one of two things can happen when a Loan Officer for a large financial institution is unable to qualify a bank customer for an agency loan. The Banker can either say, “Sorry, we can’t help you,” or “We don’t originate alternative loans, but I can refer you to a great company that has just the product you need.” Because the second answer is clearly preferable, non-QM Originators will find that many traditional competitors can become great referral partners. Most major banks do not originate non-QM mortgages. At the same time, they never want to tell consumer or commercial banking customers that their business is not welcome. A 2016 Federal Reserve study showed that around one in every eight mortgage applications (more than 10 percent) is rejected for a variety of reasons. When agency lenders must deliver bad news, they can also offer hope by recommending a reputable non-QM resource. “The last thing you want to do is tell people their business is not good enough,” one Bank Manager told me recently. “That’s why it is important to help people even if you refer them to a rival. Otherwise, they may take their checking and credit card business someplace else, wiping out years of goodwill.” For non-QM specialists, marketing to Bank Loan Officers can be more efficient and straightforward than targeting typical referral partners such as Real Estate Agents. Bankers are more likely to know what non-QM loans are. Plus, they are easier to canvass, as they can usually be found at their desks during “Bankers Hours.” “If you really want to connect with the largest number of potential referrers in the shortest amount of time, just drive down the road and check in at every bank,” a successful nonQM Originator said. “Someone is usually available, and you don’t have to spend much time explaining the need and benefit.” The five minutes you spend at each stop will be well worth the time. Just introduce yourself, ask if they have someone to whom they refer fallout business (they usually do not) and leave your contact information. As America’s largest non-QM lender and industry pioneer, Angel Oak Mortgage Solutions offers diverse products for borrowers and tools to help Originators succeed. Your Angel Oak Mortgage Solutions Account Executive will help you identify and work with deserving borrowers who simply do not meet narrow agency lending criteria. Call (866) 837-6312 or learn more at AngelOakMS.com/MAP.

Tom Hutchens is Executive Vice President, Production at Angel Oak Mortgage Solutions, an Atlanta-based wholesale and correspondent lender leading the non-QM space for four years and licensed in over 35 states. Tom has been in the real estate lending business for nearly 20 years. He may be reached by phone at (855) 5394910 or e-mail Info@AngelOakMS.com.

SPONSORED EDITORIAL

new to market

continued from page 13

in standardizing translations across the mortgage industry. “FHFA is proud to collaborate with Freddie Mac and Fannie Mae and so many others on this important initiative to help address language barriers that impede access to mortgage credit,” said Janell ByrdChichester, Chief of Staff at FHFA. “The Mortgage Translations clearinghouse is one part of a Language Access Multi-Year Plan and includes a number of meaningful resources to help mortgage industry professionals reach a broader range of borrowers.” The first phase of the launch consists of Spanish-language documents. According to the U.S. Census, persons who speak Spanish as their primary language comprise more than 60 percent of the LEP population in the U.S. Resources in four other languages commonly spoken by LEP households–Chinese, Vietnamese, Korean, and Tagalog–will be added in the coming years. “Freddie Mac is pleased to work with FHFA and Fannie Mae on this language access multiyear plan, as it demonstrates our commitment to help make home possible for today’s borrower and the borrower of the future,” said Danny Gardner, Senior Vice President of Single-Family Affordable Lending and Access to Credit at Freddie Mac. “The materials included on this website will provide lenders, servicers, real estate professionals and housing counselors with tools to better assist, educate and engage LEP borrowers throughout the mortgage process.” Jonathan Lawless, Vice President for Product Development and Affordable Housing at Fannie Mae, said, “Fannie Mae is excited to partner with FHFA and Freddie Mac to launch this central source of translated documents. This online resource will educate, engage and better assist LEP borrowers when shopping for a mortgage.”

Solutions, part of the First American family of companies, has announced the launch of its eClosing solution, designed to securely deliver digital settlement for digital mortgage. The platform is part of First American Mortgage Solutions’ efforts to help lenders manage the complicated eClosing process, while enhancing the digital mortgage experience for consumers. “We’re committed to protecting the integrity of real estate transactions, whether they are closed with wet ink or an eSignature. Our eClosing solution will enhance the consumer experience and increase efficiency, while reducing risk and operational errors,” said Kevin Wall, President of First American Mortgage Solutions. “It is designed to help lenders accelerate the adoption of digital mortgage, while providing both lenders and consumers the confidence that the digital settlement process is facilitated by one of the industry’s leading title and settlement providers.” First American Mortgage Solution’s eClosing solution will include a mobile-friendly interface, consumer document preview, mobile notary digital scheduling, consumer appointment confirmation, eSignatures for hybrid eClosings and remote online notarization (RON) capabilities where approved for fully digital eClosings. For RON eClosings, the solution will also manage “eVault-ready” loan documents, including fully executed eNotes, ready to support a lender’s MERS eRegistry and eVaulting workflows. Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555

First American Mortgage Solutions Launches New eClosing Solution

Newsroom@MortgageNewsNetwork.com

First American Mortgage

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

E-mail:

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, Have you connected with Pendella yet? In addition to our incredible NAMB+ Endorsed Providers listed below we’ve now partnered with Pendella to offer a virtual healthcare exchange for NAMB Members and mortgage professionals throughout the United States. First launched in mid-October, the Pendella virtual health care exchange offers: medical insurance; vision and dental plans; income protection; life insurance; business overhead insurance; accident and illness plans; and personal care accounts. Additionally, for those who need it, Pendella also offers a technology solution that will streamline your HR data, make onboarding and benefits administration a breeze, and syncs seamlessly with your existing payroll system. Pendella is a leader in the insurance market and is dedicated to providing

small businesses like yours with greater opportunities when it comes to employee benefits, business protection and HR support. Pendella will even take the time to understand your business's big picture and offer suggestions on how you can better protect your business’s financial wellbeing. If you haven’t made your reservations yet for NAMB National, come learn more about Pendella and all of our tremendous NAMB+ Endorsed Providers at Caesars Palace in Las Vegas, NV December 8 – 10! I look forward to seeing you there! Sincerely,

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

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

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

Moso provides Brokers and LOs with customized websites, online application generation, rate alerts, borrower portal, CRM and Cloudbased Document Management at an affordable price of $50 per month, plus $15 per funded loan. A 3 month free trial along with the first 5 free funded loans is extended to NAMB+ members. MySMARTblog.com The way your prospects think has changed and that is where the massive shift occurred. At MySMARTblog.com we build a complete, dynamic and Profitable Online Presence™ in order to protect you and your valuable repeat and referral business from your competition. Sarma gives you access to their extensive resources including: merged reports from the three top credit bureaus, CreditXpert tools, AVM Reports, SocialValidate, TRV Verification, Interface with over 30 LOS, Fannie and Freddie connection, Verification of employment/deposit and much more.

Simplii VOIP business phone solutions include all the features and functionality of a high end business phone system without the high costs. We offer all NAMB members a 10% discount off their phone services. If you want a social and 19 mobile marketing strategy that gets noticed contact Social5 today for a FREE consultation and demo and to receive your NAMB member discount pricing SYNCRO connects mobile salespeople to their office website leads. NAMB Members receive a 10% discount off regular prices for monthly unlimited SYNCRO Web Chat packages.

n National Mortgage Professional Magazine n NOVEMBER 2018

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Identity Theft Prevention:

How to Catch a Thief By Jonathan Foxx, Ph.D., MBA

2. A consumer might provide a law enforcement report similar to the above report, but certain important information such as the consumer’s date of birth or Social Security number may be

3. A consumer might provide a law enforcement report generated by an automated system with a simple allegation that an identity theft occurred to support a request for a tradeline block or cessation of information furnishing. Question: Would it be reasonable for an information furnisher or CRA to ask that the consumer fill out and have notarized the Commission’s ID Theft Affidavit or a similar form and provide some form of identification documentation? Answer: It would be reasonable. 4. A consumer might provide a law enforcement report generated by an automated system with a simple allegation that an identity theft occurred to support a request for an extended fraud alert. Question: Would it be reasonable for a consumer reporting agency to require additional documentation or

information, such as a notarized affidavit? Answer: It would not be reasonable.

identity theft. 4. Any other information known to the consumer about the identity theft.

In these scenarios, a financial institution should be responsive in accordance with certain guidelines. Specificity of action must be appropriate, reasonable and proportional to the challenge. However, total reliance on the CRA is inappropriate.

When a financial institution is faced with declining a loan for identity theft, a report should be drafted with relevant information to support the decision. Simply declining a loan and issuing an Adverse Action disclosure or alleging identity theft by reporting it to Financial Crimes Enforcement Network (FinCEN) by filing a Suspicious Activity Report (SAR) is not sufficient. Regulators and internal auditors routinely ask for an identity theft report in order to determine the extent to which an investigation was conducted. Furthermore, such an investigation demonstrates the institution’s “good faith” commitment to its Anti-Money Laundering Program, “good faith” being a key demonstrative element in a regulator’s assessment of the institution’s compliance. Other regulations are triggered, too, such as those promulgated by the Federal Trade Commission in its Identity Theft Protection Program as well as the regulations of the Fair Credit Reporting Act (FCRA) and the

Undertaking evaluative actions In avoiding identity theft schemes, I suggest that four basic evaluative actions be undertaken, where a decision is needed to ask for additional information from the consumer. 1. Specific dates relating to the identity theft such as when the loss or theft of personal information occurred or when the fraud(s) using the personal information occurred, and how the consumer discovered or otherwise learned of the theft. 2. Identifying information or any other information about the perpetrator, if known. 3. Name(s) of information furnisher(s), account numbers, or other relevant account information related to the

continued on page 22

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1. A law enforcement report containing detailed information about the identity theft and the signature, badge number, or other identification information of the individual law enforcement official taking the report should be sufficient on face value to support a victim’s request. Question: Without an identifiable concern, such as an indication that the report was fraudulent, would it reasonable for an information furnisher or Consumer Reporting Agency (CRA) to request additional information or documentation? Answer: It would not be reasonable.

missing because the consumer chose not to provide it. Question: The information furnisher or CRA could accept this report, but would it be reasonable to require that the consumer provide the missing information? Answer: It would be reasonable.

NationalMortgageProfessional.com

ere are four scenarios involving identity theft that Mortgage Originators encounter from time to time. Read them and then keep them in mind as I discuss how to ask for additional information in order to prevent identity theft.

identity theft prevention

Fair and Accurate Credit Transactions Act (FACTA), which is an amendment to the FCRA, primarily to protect consumers against identity theft. Identity theft report The identity theft report should consist of the following components:

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l The allegation of identity theft with as much specificity as the consumer can provide. l A copy of an official, valid report filed by the consumer with a federal, state, or local law enforcement agency, and even the United States Postal Inspection Service.1 l Additional information or documentation that an information furnisher or consumer reporting agency reasonably requests for the purpose of determining the validity of the alleged identity theft, provided that the information furnisher or consumer reporting agency: n Makes the request not later than 15 days after the date of receipt of the copy of the identity theft report form or the request by the consumer for the particular service, whichever will be the later. n Makes any supplemental requests for information or documentation and final determination on the acceptance of the identity theft report within another 15 days after its initial request for information or documentation. n Has five days to make a final determination on the acceptance of the identity theft report, in the event that the consumer reporting agency or information furnisher receives any such additional information or documentation on the 11th day or later within the 15-day period. Understanding identity theft But what is identity theft? Over time, this concept has gone through ever wider definitions. I propose a simple outline, helpfully provided by the FACTA.2 Identity theft means a fraud committed or attempted using the identifying information of another person without authority. This seems straight-forward and unambiguous.

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However, the term “identifying information” leads to a more nuanced definition, because that terms means any name or number that may be used, alone or in conjunction with any other information, to identify a specific person, including any: l Name, Social Security number, date of birth, official state or government issued driver’s license or identification number, alien registration number, government passport number, employer or taxpayer identification number; l Unique biometric data, such as fingerprint, voice print, retina or iris image, or other unique physical representation; l Unique electronic identification number, address, or routing code; and, l Telecommunication identifying information or access device. Naturally, the process of determining what constitutes appropriate proof of identity is pivotal in making a decision about the presence or absence of identity theft. Consumer reporting agencies are usually at the forefront of finding ways to establish identity, in that they are required to develop and implement reasonable factors involving the information that consumers must provide to constitute proof of identity.3 These factors must: l Ensure that the information is sufficient to enable the CRA to match consumers with their files; and, l Adjust the information to be commensurate with an identifiable risk of harm arising from misidentifying the consumer. Identity theft alerts When Lenders Compliance Group conducts a due diligence review, my firm’s auditors evaluate the choice of information that our client considers to be reasonable information for proof of identity. One factor is what we call the “consumer file match,” which is the identification information of the consumer, including his or her full name (first, middle initial, last, suffix), any other or previously used names, current and/or recent full address (street number and name, apt. no., city, state, and zip code), full nine digits of Social Security number, and/or date of birth.

Another factor we call “additional proof of identity,” which usually consists of copies of government-issued identification documents, utility bills, and/or other methods of authentication of a person’s identity (which may include, but would not be limited to, answering questions to which only the consumer might be expected to know the answer). Additionally, it is critical to determine if the consumer has placed a fraud alert on the consumer report. The two alerts that are required by CRAs to place on consumer reports are fraud alerts and the active duty alerts.4 A fraud alert is a notice that the consumer may have been a victim of identity theft or other fraud. An active duty alert is a notice that the consumer is on active duty in the military. There are timing requirements.5 An initial fraud alert must be placed in a consumer’s report for 90 days at the consumer’s request. If the consumer files an identity theft report, an extended fraud alert can remain in the consumer’s report for seven years. An active duty alert will remain in the consumer’s report for 12 months. The initial fraud alert and active duty alert notify all prospective users of the consumer report that the consumer does not authorize the establishment of any new credit plan, increase in credit limit on an existing credit account, or other extension of credit (other than under an existing open-end credit plan), in the name of the consumer, or issuance of an additional card on an existing credit account requested by a consumer unless the lender follows the required procedures. If an initial fraud alert or active duty alert appears on a consumer report, a lender cannot extend credit unless the user utilizes reasonable policies and procedures to form a reasonable belief that the user knows the identity of the person making the request. These policies and procedures can be a heavy lift and often need competent compliance guidance to navigate. If a consumer requesting the alert has specified a telephone number to be used for identity verification purposes, before authorizing any new credit plan or extension in the name of the consumer, the lender must contact the consumer using that telephone number or take reasonable steps to verify the consumer’s identity and confirm that the application for a new credit plan is not the result of identity theft.

Additionally, there is the “extended fraud alert,” where the consumer’s report must include information that provides all prospective users of the consumer report with: l Notification that the consumer does not authorize the establishment of any new credit plan or extension of credit (other than under an existing limit of an open-end credit plan) in the name of the consumer, or issuance of an additional card on an existing credit account requested by a consumer, or any increase in credit limit on an existing credit account requested by a consumer, unless the lender first contacts the consumer as specified in the report, and l A telephone number or other reasonable contact method designated by the consumer for lenders to contact the consumer to verify their identity. Extended fraud alerts prohibit lenders from establishing a new credit plan or extension of credit (other than under an existing limit of an open-end credit plan) in the name of the consumer. A financial institution may not issue an additional card on an existing credit account requested by a consumer, or increase credit limit on an existing credit account requested by a consumer, unless the company contacts the consumer in person or uses the contact method described in the consumer report to confirm that the application for a new credit plan or increase in credit limit, or request for an additional card is not the result of identity theft. Scammers will be scammers But scammers always scam and conmen always con. Conman is the short form for “Confidence Man,” because such an individual has a knack for gaining a mark’s confidence and then pulling the scam which, in this case, is stealing the mark’s identity. A financial institution or other business entity that provides credit to an identity thief (or other person who allegedly has made unauthorized use of a victim’s identification) must provide a copy of the application and other records it has (or are maintained by another on the business entity’s behalf) regarding the transaction (i.e., copies of checks or card sales slips).6 The victim’s request must be in writing, contain certain information, and be mailed to an continued on page 100

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national mortgage professional magazine’s

Legends of Lending New American Funding

ew American Funding is one of the most vibrant and aggressive forces in today’s mortgage industry. During 2018, the Tustin, Calif.-based company won two awards from NerdWallet (Best Mortgage Lender for FirstTime Home Buyers with Low Credit Scores and a Best FHA Lender for Borrowers with Nontraditional Credit Histories), won the Gold Stevie Award for Employer of the Year–Financial Services for the third year in a row, and appeared on the Inc. 5000 List for the sixth time. To discuss the company’s distinctive place in the industry, National Mortgage Professional Magazine spoke with Chief Executive Officer Rick Arvielo, Senior Vice President of National Retail Sales Sam Ellsworth, and National Vice President of Multicultural Lending Frank Fuentes.

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What was the genesis of New American Funding? Rick Arvielo: I started a business when I got out of high school with a few buddies. It grew to the point that by 1990, I could sell it and retire. I was 34-yearsold and thought I was set for life–until the stock market crash made me go back to work. My wife Patty said I should try the mortgage profession. I joined a mortgage shop and found some success. By 2003, Patty and I decided we wanted to do this on our own. I was a broker and wanted to be a banker. Patty had experience in the market—she had been working in the industry since she was 16—and she focused on sales while I focused on technology and accounting. By 2008, we had a small staff, and now we are at 3,000. We had no branches before 2012, now we have around 180. We’re in 48 states. We didn’t retain servicing before 2012, and now we are pushing $30 billion. A lot of good has happened. How were you able to grow so dramatically over a relatively short period and during years when the industry had its share of challenges? Rick Arvielo: As we grew, we did not lose our family feel at New American Funding. Maintaining our sense of intimacy was the big concern as things started to take off. Prior to 2011-2012, we were just one location and were primarily a call center. We opened our first branch in 2012 and talked long and hard amongst ourselves about how to export our culture. Sam Ellsworth: I am reminded by what basketball player and UCLA Head Coach John Wooden said: “Be quick, but don’t hurry.” If you make a wrong decision or bring in the wrong individual or group, you can put your growth at risk. We’ve grown tremendously in a short period, but we’ve done it the right way. What makes New American special and unique is the organic nature of the growth and the collaborative camaraderie throughout every facet of the company, from sales to operations. All of that leads to culture. What makes your company different from its competition? Frank Fuentes: What makes the leaders at New American Funding unique is that a

“As we grew, we did not lose our family feel at New American Funding. Maintaining our sense of intimacy was the big concern as things started to take off.” Rick Arvielo, Chief Executive Officer, New American Funding

lot of us are still originating loans, even though we’re in leadership positions. This is not typical. We’re not just sitting behind a desk. It is important for us to continue to originate and have a pulse on the market. Sam Ellsworth: All of our Senior Vice Presidents—there are only eight or nine of them—built their markets almost from scratch. New American Funding is not creating roadblocks for anyone who wants to work hard and have success. If you’re looking to hide in plain sight, we’re not right for you. At the same time, we’re not a company that micromanages. I sense we’re very different from most of our competition in that sense. You can work hard and not accomplish much. Here, however, the entire team—whether it is Originators, Branch Managers, Regional Sales Managers, Senior Vice Presidents, Recruiters, Operations— have to be committed. I think we do a very good job at competing at a very high level. But we’re not just going to blast into a market and throw flags and hope everything works out. Many companies grow their footprint through mergers and acquisitions. Has that been part of your strategy? Sam Ellsworth: We’re not a merger and acquisition company. We haven’t acquired anyone. Companies have been interested in talking to us about acquiring them, but we’re very selective with those operations. New American Funding has gained a lot of attention for its efforts to reach potential homeowners in traditionally underserved demographic markets. What has that been an important part of your operations? Rick Arvielo: My wife is Latina, so she is passionate about the Latino market. What started as a passion project for her became good business for us. For starters, the demographics skews young and the numbers are big. Frank Fuentes: Hispanics make up one of the most important and burgeoning

“What makes the leaders at New American Funding unique is that a lot of us are still originating loans, even though we’re in leadership positions. This is not typical. We’re not just sitting behind a desk.” Frank Fuentes, National Vice President of Multicultural Lending, New American Funding

demographics in the nation—all statistics are pointing to the Hispanic community as a driving force of the economy. Rick Arvielo: We’re also starting to focus on African-Americans. In a year, we doubled our percentage of lending to African-Americans. It doesn’t take that much to do—it takes a little focus and a plan to help empower and serve these communities. How active is your company in the reverse mortgage space? Sam Ellsworth: It is not a big focus for New American Funding. It’s a small and growing market, and we do it as a value-added service for our clientele. Rick Arvielo: What little we do is about 20 to 30 loans a month. But that puts us in the top six among the reverse mortgage originators. And how about your activity in the USDA and VA loan markets? Sam Ellsworth: USDA is relevant to the markets we’re in. We also do a lot of VA loans. We have a lot of veterans who work at New American Funding as Originators and management, and we take a great deal of pride in helping other veterans achieve their homeownership goals. In taking a look through the online customer reviews for New American Funding, it is difficult not to notice a large number of four- and five-star reviews. How important are these reviews to your company? Sam Ellsworth: Without incredible client and customer experience, you lose business, so we keep that front of mind, always. You are helping a person make the biggest financial decision of his or her life so you need to exceed expectations. We take that very, very seriously. It is paramount that our team members understand our responsibility to the clients we serve. If we see a negative review, those responsible dive in to determine what happened and we all work to prevent it from happening again.

“New American Funding is not creating roadblocks for anyone who wants to work hard and have success. If you’re looking to hide in plain sight, we’re not right for you.” Sam Ellsworth, Senior Vice President of National Retail Sales, New American Funding

What do you see as the near-term future of the industry? Frank Fuentes: A volume and production shift is occurring now. I anticipate a slowdown. We are already seeing it with margin compression, resulting in rising interest rates. More lenders are using technology to remove the need for certain human interactions. But regardless of what technology does, there will still be a need for face-to-face relationship building. Sam Ellsworth: Analytics tell us we’re fighting for a smaller piece of the pie. The industry has gone through fundamental and revolutionary changes. Either we look at opportunity to create and compete or we’re hanging on and retracting. Companies out there are going to be in a tight spot. On our side of things, we think we’re positioned to do well moving forward. We’re cognizant of making the right decisions and not focusing on growing at all costs. Rick Arvielo: We’ve been in a perpetual refi boom for at least the last decade. You can argue that has been going on back to 2001, with rates jumping up in the latter part of 2016. Today, one-third of the business is gone—and I am hearing about companies closing channels and selling divisions or closing altogether. If you could describe New American Funding in one word, what would it be? Rick Arvielo: One word? It’s not one word, but I would say “A Gift.” It is a gift to be surrounded by exceptional people—also, accomplished people. At our company, it’s not about the CEO, but about the people the CEO has been able to attract.

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

A Message From NAMB 2018-2019 President Richard M. Bettencourt Jr., CRMS, CMHS By the time you read this, it is my hope that you are sitting comfortably in your room at Caesar’s Palace on Day One of the 2018 NAMB National Convention. I want to take a minute to sincerely thank each and every one of you who took time out of their business, spent some hard-earned cash, and traveled to Las Vegas to be with us at this incredible event. I’ve been attending this event for nearly 10 years, and every single time I’ve come to NAMB National, I’ve walked away with more than one opportunity to help me with my daily production, grow my business or streamline a piece of this incredibly time sensitive business we chose as our profession. Whether it’s a new lender you never heard about offering programs you need, technology that will make assisting your new clients better and faster, software that will help keep you top of mind with your past clients, or what I feel is one of the most important takeaways, understanding the legislative battles we have on a daily basis, the beautiful thing about

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NAMB National is that it caters to more than one need any Mortgage Broker or Loan Originator might have! We begin planning each NAMB National the day NAMB National ends and at the forefront of our planning strategies is always the ongoing question: “How can we help our Brokers close more loans, help more consumers, make more money, save more money, while getting vital education and letting them know that their profession is consistently under attack and we need their help?” We don’t have the luxury of focusing on one area, we must find the avenues within the business to professionally, ethically and morally help all of you in as many areas as possible. I’m so incredibly proud of my staff for consistently delivering incredible content through hard work and outstanding relationships we’ve had and fostered over the 45 years NAMB has been advocating for you. I knew prior to becoming President that NAMB had some incredible partners and allies in the business, but since transitioning to the role of President, I am blow away by how many industry partners truly appreciate the value NAMB brings to the business and their willingness to help their clients and our members. Speaking of amazing Industry Partners and helping members, boy do we have a few surprises for all of you! Depending on when you’re reading this you may or may not have heard about the incredible and amazing announcement I made or am about to make! This will blow your socks off and truly give you and your fellow Broker brothers and sisters the best advantage in the market! Now, if you’re reading this on Friday; just sit tight! And if you happened to have missed NAMB National, and you’re reading this in your office, you’ll want to e-mail me at Rick.Bettencourt@NAMB.org to find out how we just helped our brokers! Did you know that just one of our newest member benefits has the potential to save you more than $1,000/year in daily expenses and business costs! Who wouldn’t want to save $100 per month in their business so they can reinvest in something else to grow your business? That’s a no brainer to me! NAMB National is where you go to

“I knew prior to becoming President that NAMB had some incredible partners and allies in the business, but since transitioning to the role of President, I am blow away by how many industry partners truly appreciate the value NAMB brings to the business and their willingness to help their clients and our members.”

N A M B

P E R S P E C T I V E

help your entire business … not just one piece of it! I hope you all have an incredible NAMB National! Please, don’t be shy! If you see me at the conference and have some ideas, feedback, constructive criticism, or just want to say “Hi,” please pull me aside and let me know. I love talking with our attendees; it helps me plan a better event next year! Just ask my wife, Jennifer, she’ll tell you I’m a talker! Thank you again! Sincerely,

NAMB Certification Committee Update

Richard M. Bettencourt Jr., CRMS, CMHS, President National Association of Mortgage Brokers

NAMB National is where Loan Originators and Mortgage Professionals from all over the U.S. come together to network, obtain industry knowledge and learn what is new and coming soon for the industry. This year, we will be offering a new NAMB certification, just for Loan Originators who want to set themselves apart as a leader in guiding veterans through the homebuying process as a VA home loan originating expert in their community. Are you ready to add a new certification to your signature line? NAMB’s new Certified Veterans Loan Specialist Designation (CVLS) will be ready for NAMB National in Las Vegas. This is the first time NAMB has had a VA certification for mortgage professionals. We will be presenting this six-hour class to those individuals who are already experienced in originating or just starting their careers in the mortgage industry. It will be a very detailed and an in-depth course that will offer the CVLS test at the conclusion of the class. You will receive your designation as soon as your test is graded at the end of the course. You will be able to use this designation in all your advertising, e-mails, social media outlets and Web pages. You can wear your CVLS Certification Pin proudly when you are out marketing yourselves to Realtors or at events where you might want to set yourself apart from other originators. You can start signing all of your documents with your CVLS designation after your signature. I am so excited to have this opportunity to offer this course during my term as the Certification Committee Chair. Ken Bates has worked tirelessly, putting together this professional course that will ultimately be helping veterans with the homebuying process for years to come. I want to thank the many volunteers who have helped with proofreading and test preparation, especially Daniel Mann. It will surprise you to learn all the ins and outs of what VA will allow you to do to help a veteran finance their dream home. We plan to update this course every year to keep your certification as important to you and your clients as possible. I cannot wait to add another designation to my signature line. Putting those letters after your name tells people that you have those professional skills and are dedicated to helping veterans. Sign up today to get your CVLS designation in Las Vegas at NAMB National on December 10 at Caesars Palace. Go to NAMB.org and sign up today. I am counting on my new Signature line to be: Linda McCoy, CRMS, CVLS.

Richard M. Bettencourt Jr., CRMS, CMHS is President of NAMB and Branch Manager of Mortgage Network Inc. in Danvers, Mass. Rick may be reached by phone at (978) 979-0883 or e-mail Rick.Bettencourt@NAMB.org.

A Message From NAMB Government Affairs Chair Martin Pfeiffenberger

By Linda McCoy, CRMS, CVLS

Linda McCoy, CRMS, CVLS of Mobile, Ala.-based Mortgage Team 1 Inc. is a member of the NAMB Board of Directors, as well as NAMB Certification Committee Chair. She may be reached by e-mail at Linda.McCoy@NAMB.org.

Save the date ...

Saturday-Monday, September 14-16, 2019

2019 NAMB National Conference & Trade Show Caesar's Palace • Las Vegas For more information, visit NAMB.org.

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Martin Pfeiffenberger is NAMB Government Affairs Committee Chair and NAMB Director. He is also President/Owner of Latham, N.Y.based Maple Tree Funding. He may be reached by e-mail at MartyP@NAMB.org.

NationalMortgageProfessional.com

Hello everyone, I am Martin Pfeiffenberger, your new Government Affairs Committee Chair. I am honored to be asked by our President Richard Bettencourt to serve NAMB and its membership in the coming year. In my past years on the committee working under Chris Bettis and Roy DeLoach, I have learned a lot and I am looking forward to continuing Chris’ great work. As I write this a few days before the election, I am wondering how our two houses of Congress will look after the election. All I know is that no matter the outcome, NAMB will be working diligently to further advance the agenda of NAMB to help protect and serve the consumer. There are still many bills and amendments we are working on to achieve this goal. The CFPB (now referred to as the Bureau) is still progressing along with their agenda of cleaning up all federal forms and some adjustments needed in the Dodd-Frank bill. It is imperative that we all have a voice in D.C. during this process. We are still working on behalf of the consumer and our members on bills in progress, such as HR 2577 and S 2155. One of the most important items and association can do for its members is to ensure they have a voice at the capital at both the federal and state levels. When you do not, legislation can get passed that harms both the consumer and the Mortgage Broker. There is a state that passed legislation that only allows the Broker to make one point on a transaction. This is why a strong voice is needed in D.C. and your state capitals. If you have a state association, join, if you do not have a state association and need assistance, please reach out to me at MartyP@NAMB.org. We are here to help all members, those who are professionals and join and contribute to the PAC and those who just benefit.

The Certified Veterans Loan Specialist: NAMB’s Newest Designation

N A M B

P E R S P E C T I V E

A Message From NAMB Membership Committee Chair Kimber White, CRMS & NAMB Conference Committee Chair Linda Knowlton

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As NAMB’s Membership Committee Chair and Convention Committee Chair, we are looking forward to seeing you at NAMB National at Caesar’s Palace, Dec. 8-10, 2018. We have a fantastic trade show planned with 116 vendors and 125 booths. We have many great breakout speakers to help with your business development as well. There will be a VA Certification class on Monday, Dec. 10. You will not want to miss this opportunity to become approved for NAMB’s newest designation, the Certified Veterans Loan Specialist (CVLS). Our amazing Keynote Speaker will be Larry King, speaking at our Luncheon on Saturday, Dec. 8.This year’s entertainment at our Annual Awards Dinner and Installation will be chart-topping artists, Boyz II Men. Sign up early for both of these events, as these events are sure to be a sellout! To expedite registration, we have a “Members Only” Registration Line. Members have asked for this and we listen. We value and appreciate our NAMB members and you are our priority. So if you have not registered for NAMB National … do so today! Our 2019 NAMB Focus: Technology Conference & Trade Show will be held on Wednesday- Saturday, February 6-9 at Innisbrook Golf & Spa Resort in Tampa, Fla. Attendee registration will open shortly at NAMB.org for this informative event, full of resources and tools to help you start 2019 off right. As a member of NAMB, you receive great and exciting benefits. Some of our newest partners include Pendella Insurance, which offers medical insurance, vision and dental plans, income protection, life insurance, business overhead insurance, accident and illness plans, personal care accounts, and much more; as well as EC Purchasing, which provides discounts as high as 50 percent off office supplies, travel, business services and much more. These are just two of the benefits you get with your NAMB membership. In addition, you can visit NAMBPlus.com to see a variety of Endorsed Providers that have discounted offerings and exclusive member benefits. By using just a few of these benefits you will more than pay for your $120 membership. Also, as a member of NAMB, you get the benefit of accessing and communicating with thousands of your fellow mortgage professionals, and together, our voices make a difference. If you are a member, thank you. If not, we ask you to visit NAMB.org and click on the “Membership” Tab to learn more. We look forward to seeing you at NAMB National. Stop by our Membership Booth #807 and the NAMBPLUS Booth #900 to find out about all the added value your membership gets you. We would love to say hello to you. See you in Vegas! Kimber White, CRMS is NAMB Membership Committee Chair and a member of the NAMB Board of Directors. Kimber is also a Branch Partner with RE Financial in Fort Lauderdale, Fla. He may be reached by e-mail at Kimber.White@NAMB.org. Linda Knowlton is NAMB Conference Committee Chair and Immediate Past President of the Southwest Chapter of the Florida Association of Mortgage Professionals. Linda is also Manager of Mortgage Group Services in Fort Myers, Fla. She may be reached by e-mail at Linda@MortgageGroupServices.com.

Apply for NAMB Awards! What sets your company apart? Why do you love working at your company? How does your business connect with your community? Have you launched a creative campaign to reach your customers? NAMB is excited to announce that registration is now open for NAMB Awards! Visit NAMBAwards.org to learn more about the awards, and apply to win! l NAMB’s Best Places to Work: Celebrating what makes working at your company great, from office culture to unique benefits. l NAMB’s Community Impact Award: Honoring you for impactful ways you get involved and connected with your community. l NAMB’s Most Innovative Mortgage Campaign: Shining a spotlight on innovative ways you connected to customers in 2018. Registration for NAMB’s Awards is open until Monday, Nov. 26, and winners will be announced at NAMB National in December. Winners receive: l Up to 10 Corporate Memberships for you and your staff for one year. l Free admission for up to five people at NAMB Focus 2019, the NAMB Legislative & Regulatory Conference 2019, and NAMB National 2019. l Award logo to proudly display or your Web site and marketing materials. For more information, visit NAMBAwards.org.

2019 NAMB Focus: Technology Conference & Trade Show The 2019 NAMB Focus: Technology Conference & Trade Show will be held on Wednesday-Saturday, February 6-9 at the Innisbrook Golf & Spa Resort in Tampa, Fla. This year’s show will feature a fun-filled Golf Tournament, a Trade Show featuring product showcases on the Exhibit Hall Floor, informative Breakout Sessions, plus much more! For more details, contact NAMB Executive Director Valerie Saunders at (202) 434-8250, e-mail ValSaun@NAMB.org or visit NAMB.org.

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

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n National Mortgage Professional Magazine n NOVEMBER 2018

NAMB National 2018 Saturday-Monday, December 8-10 Caesar’s Palace • 3570 South Las Vegas Boulevard • Las Vegas

Schedule of events Subject to change

Friday, December 7 8:00 a.m.-10:00 a.m. NAMB Plus Meeting (Closed Meeting) Emperors Ballroom 1 10:00 a.m.-11:00 a.m. NAMB PAC Committee Meeting Emperors Ballroom 2 11:00 a.m.-Noon NAMB Government Affairs Committee Meeting Emperors Ballroom 1 Noon-1:00 p.m. NAMB Past President’s Committee Meeting (Closed Meeting) Emperors Ballroom 2 1:00 p.m.-3:00 p.m. NAMB Board Meeting Emperors Ballroom 1 2:00 p.m.-5:00 p.m. Exhibitor Set-Up Augustus Ballroom

NOVEMBER 2018 n National Mortgage Professional Magazine n

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6:00 p.m.-8:00 p.m. NAMB Member and Exhibitor Welcome Reception

Saturday, December 8 8:00 a.m.-11:00 a.m. Exhibitor Set-Up Augustus Ballroom 9:00 a.m.-9:50 a.m. How to Succeed in a Saturated Space: Five Ways to Excel and Sell in a Saturated Market Palace Ballroom Presented by David McLeod, National Sales Manager, Calyx Software In today’s commoditized market it can be difficult to sell value over price. So, how do you convince a prospect that all mortgage companies aren’t alike? The first step is to offer unique services they can only get from you. Don’t miss this exciting opportunity as we discuss five ways to excel and sell in a saturated market. 9:55 a.m.-11:00 a.m. Mortgage Titans, Past, Present & Future Palace Ballroom Sponsored by Freedom Mortgage Join Angelo Mozilo and Stan Middleman as they jointly discuss the past, present and future of the mortgage industry. Gain unique perspectives in this compelling dialogue moderated by Rob Chrisman.

11:00 a.m.-11:15 a.m. Shaking Up the Small-Balance Investment and Commercial Property Industry Palace Ballroom Featuring Nicole Curtis, Host of HGTV and DIY Network’s “Rehab Addict” Nicole Curtis is the high-energy, charismatic star of “Rehab Addict,” the long-running hit HGTV and DIY Network show. The self-taught home renovator, designer and tireless champion of saving and restoring old houses is famous for her extraordinary home transformations and unbridled passion for rebuilding neighborhoods. She’s equally passionate about giving back, creatively using her home restoration projects to raise funds for causes close to her heart. The mother of two speaks candidly about her rollercoaster journey to success, from being a struggling single mother selling garage sale finds on Craigslist to becoming a self-made millionaire, TV star, New York Times bestselling author, home renovation expert and Realtor. Nicole and Velocity Mortgage Capital CEO Chris Farrar will present a new program for residential and small-balance commercial property investors that’s designed to shake up the industry. 11:00 a.m.-12:45 p.m. Swearing in of the 2018-2019 NAMB Officers Palace Ballroom Keynote Speaker Luncheon Featuring Larry King and Ceremonial Separately-ticketed event: Cost $25 (includes plated lunch) As the former host of CNN’s Larry King Live, the first worldwide phone-in TV talk show, Larry King has been a mainstay in network broadcasting for over 50 years. After bidding farewell to the show in fall of 2010, just after its 25th anniversary, the Emmy Award-winning host remains the man responsible for one of CNN’s highest-rated programs. 1:00 p.m.-6:00 p.m. Trade Show Floor Open Augustus Ballroom 1:00 p.m.-1:50 p.m. Will 2019 Be Better Than 2018 for Lenders? Palace Ballroom Sponsored by Franklin American Mortgage Corp., featuring Rob Chrisman 2:00 p.m.-2:50 p.m. Dominate by Being Different Palace Ballroom Sponsored by United Wholesale Mortgage Running your business with a different strategy than your competitors is okay, and many times, it is the key to being dominant in your space. Come hear UWM President/CEO Mat Ishbia discuss how doing things differently has catapulted UWM to be the top wholesale lender in America for nearly four years in a row, as well as a top five overall lender in the country. Mat will discuss ways that Mortgage Brokers can think differently, partner with clients differently, and continue to dominate in their respective markets.

NAMB National 2018 Saturday-Monday, December 8-10 Caesar’s Palace • 3570 South Las Vegas Boulevard • Las Vegas

3:00 p.m.-3:50 p.m. Why Non-QM Should Be Part of Your Origination Mix Emperors Ballroom 1 Featuring Regional Vice President of Sales Dennis Colon and Account Executive Eric Morgenson, Angel Oak Mortgage Solutions Times are different today and so is alternative lending. In this informative session from Regional VP of Sales Dennis Colon and Account Executive Eric Morgenson with Angel Oak Mortgage Solutions, you’ll learn what alternative lending means today and why Brokers who avoid the non-agency market do so at their own peril. At this session Brokers will better understand: How today’s non-prime/non-agency market is completely different than the sub-prime of old; what programs are available to help challenging borrowers; how to identify and reach potential non-QM borrowers; how to qualify and actively market to them to add volume; and how to use alternative lending to successfully differentiate yourself. 3:00 p.m.-3:50 p.m. The Bottom Line on Using Non-QM to Boost Business Emperors Ballroom 2 Sponsored by Carrington Mortgage Services & Hosted by Amy Marsh, Business Development Manager for Carrington Wholesale Lending Get the real scoop on how Non QM loan products can make a real difference in increasing your pipeline. We’ll explain some of the identifying factors for those who fit the Non QM mold, how to work with them and what type of loan options are available in the marketplace for them, even for those who are self-employed.

5:00 p.m.-5:50 p.m. Breakout Session TBA Emperors Ballroom 1 Sponsored by Quicken Loans

10:00 a.m.-5:00 p.m. Trade Show Floor Opens Augustus Ballroom 31 11:00 a.m.-11:50 a.m. Tech Insights From a Recovering LO Emperors Ballroom 1 Sponsored by Blend and Presented by Brandon Hoyles, Head of Customer Engagement and Success at Blend Mortgage teams have to move quickly to outcompete their peers. Meeting customers, networking and advancing loans to close are essential job functions. Teams that can’t deliver a superior borrower experience in these ways are risking their livelihoods. Hoping to put their best foot forward, lenders are turning to technology to drive growth. The question they’re asking is: What defines a great customer experience, and what impact will technology deliver in the coming years? Brandon Hoyles, Head of Customer Engagement and Success at Blend, will share insights on how technology will continue shaping retail lending as well as his POV on technology as a former high-volume Loan Officer. His session will cover key points on delivering an excellent customer experience, data on today’s borrowers, and actions you can take today to ensure success tomorrow. 11:00 a.m.-11:50 a.m. Boost Your Business With Fix-and-Flip Loans and Private Lending Emperors Ballroom 2 Presented by RCN Capital Managing Director & Private Lending Expert Jeffrey Tesch With explosive growth in the SFR market and home flipping in the U.S. at a 10-year high, there has never been a better time to expand your product offerings. Private lending offers lucrative options for fix-and-flip deals and other real estate investing scenarios that don’t fit traditional guidelines. RCN Capital Managing Director & Private Lending Expert, Jeffrey Tesch, will teach you how to: Identify profitable solutions for some of your most commonly overlooked leads; leverage fix-and-flip loans and other private lending products to make more money now; best present yourself and your borrower to a private lender; and interested in tapping into a wealth of new business? Don’t miss this breakout session.

n National Mortgage Professional Magazine n NOVEMBER 2018

4:00 p.m.-4:50 p.m. Partnering for Success With Your Realtors Emperors Ballroom 2 Sponsored by PRMG and Presented by Paul Lucido, Chief Marketing Officer of PRMG Paul Lucido, Chief Marketing Officer of PRMG, will discuss the “How and Why” when it comes to reaching out to realtors and fostering those relationships to build a strong referral source network and, ultimately, a lifetime partnership.

Sunday, December 9 9:00 a.m.-11:00 a.m. Delegate Council & Annual Business Meeting Emperors Ballroom 1

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4:00 p.m.-4:50 p.m. Ideal Business Opportunities With Proprietary Reverse Mortgages! Emperors Ballroom 1 Sponsored by Finance of America, and Presented by Jonathan Scarpati, VP, Wholesale Production; and Steve Resch, VP, Retirement Strategies As the nation’s top wholesale reverse mortgage lender, Finance of America Reverse LLC (FAR) offers the most innovative variety of proprietary reverse products to help grow your business. Tremendous market opportunities are revealed through product demonstrations plus a question and answer session by co-presenters, Jonathan Scarpati, VP, Wholesale Production; and Steve Resch, VP, Retirement Strategies.

5:00 p.m.-5:50 p.m. Finding and Mining New Niches: Three Places to Look Now! Emperors Ballroom 2 Sponsored by Plaza Home Mortgage Inc. With overall volume down, the competition for purchase business has become intense. One way to avoid the “scrum” is to find smaller, less crowded market niches. This presentation will provide actionable, targeting and marketing advice that originators can use today to mine often overlooked, untapped niches and generate business. The panel headed by Plaza Home Mortgage’s Jeff Leinan, Executive Vice President of Wholesale, will include Mark Reeve, Vice President of Reverse Mortgages, and Tom Tough, Vice President of Renovation Lending. This session will discuss: Finding new business in your “backyard” by developing targeted marketing programs to reach pool contractors and landscapers to tap into the growing pool and backyard renovation market; positioning renovation loan programs as a new way for Realtors to move ‘‘tired” properties; and reverse mortgages as a more sophisticated retirement planning tool, and how to market these products to wealth and financial advisors and accountants.

NAMB National 2018 Saturday-Monday, December 8-10 Caesar’s Palace • 3570 South Las Vegas Boulevard • Las Vegas

Noon-12:50 p.m. Emerging Trends and How to Market Ahead of Them Emperors Ballroom 1 Sponsored by Finance of America and Presented by Author and Edumarketing Specialist Ginger Bell The mortgage market is changing a mile a minute. How you differentiate yourself and maintain trust in the everchanging world of mortgage marketing is more crucial than ever. The more you can plan ahead, the better equipped you feel to manage those changes when they happen. The question is what is your plan to use these top marketing trends? Join, best-selling Author and Edumarketing Specialist Ginger Bell as she shares what emerging trends you need to keep an eye out for and integrate into your marketing plans for 2019. Noon-12:50 p.m. Next Level Communication Through Mortgage CRM Emperors Ballroom 2 Sponsored by Cimmaron Software Are you tired of current and prospective customers ignoring your emails? The answer can be found in real-time texting and user-to-user chat with Cimmaron’s Mortgage Manager CRM. Today’s clients and prospects are looking for quick, succinct answers to their questions and concerns. They want to be able to receive timely updates on their mobile devices without having to scroll past bulky images and large blocks of copy. While e-mail has its place, text and multi-user chat make it possible to effectively communicate across any device at any given time, no matter where you or your customers happen to be. Mortgage Manager helps you enhance and streamline communications with clients and key players on your team—all without ever having to leave the app.

NOVEMBER 2018 n National Mortgage Professional Magazine n

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1:00 p.m.-1:50 p.m. Breakout Session TBA Emperors Ballroom 1 Sponsored by Flagstar Bank

2:00 p.m.-2:50 p.m. Breakout Session TBA Emperors Ballroom 2 Sponsored by Plaza Home Mortgage 3:00 p.m.-3:50 p.m. Breakout Session TBA Emperors Ballroom 1 Sponsored by REMN 3:00 p.m.-3:50 p.m. All-In-One Loan Breakout Session: Elevate Your Value and Production Emperors Ballroom 2 Sponsored by CMG Financial and Presented by Dave Herbst, VP of AIO Finance for CMG Financial Most Americans spend their entire adult life working to pay for their home largely due to the amount of interest that comes with the mortgage products we provide. Even then, very few actually achieve pay-off by the time they retire. What’s clear is that we are partly responsible. The truth is, the mortgage industry spends a lot of energy creating ways to make it easier and faster to get into debt but very little innovating ways to get out. Until now. Introducing the All In One Loan–a rate tolerant product that helps homeowners in ways conventional mortgages can’t. Join proven sales leader and VP of AIO Finance for CMG Financial, Dave Herbst, to learn how the All In One Loan works and how to position it on your business. 4:30 p.m.-5:00 p.m. Drawing of Raffle Prizes by Exhibitors Augustus Ballroom 5:00 p.m.-6:30 p.m. Exhibitor Teardown

1:00 p.m.-1:50 p.m. Reinventing Reverse Mortgages: Grow Your Business by Discovering New Product Enhancements Emperors Ballroom 2 Presented by Peter Kulis, Inside Account Executive, Reverse Mortgage Funding LLC A reverse mortgage may help your older customers effectively leverage an important, yet often overlooked, asset: Home equity. Recently, there has been a revolution in product development and increased borrower protections in the reverse mortgage industry—helping you to close more loans for a new generation of retirees. Join us to learn how we are reinventing the reverse mortgage to satisfy the needs of today’s consumer, and how our turnkey origination platforms make it easy for you to enter the business, gain a competitive edge, and increase revenue. As the nation’s most experienced reverse mortgage team, we can offer you a complete package of support—including ongoing training, a dedicated and highly experienced account team, and proven marketing strategies and materials.

6:30 p.m.-10:00 p.m. End of Event Party Featuring Boyz II Men Palace Ballroom Separately-ticketed event: Cost $49, includes Happy Hour and plated dinner. Join NAMB for a fun-filled night as we celebrate our association and those who helped make us a success over the past year! This event, which includes a plated dinner and two complimentary cocktails, features the music of Boyz II Men! Boyz II Men remains one of the most truly iconic R&B groups in music history. The group redefined popular R&B and continues to create timeless hits that appeal to fans across all generations. The band has penned and performed some of the most celebrated classics of the past two decades. The trio holds the distinction of being the bestselling R&B group of all time, with an astounding 64 million albums sold. And the reason is abundantly clear: for the past two decades Boyz II Men have given fans a rich catalogue of hits including “End of the Road,” “I’ll Make Love to You,” “One Sweet Day,” “Motownphilly,” and many others.

2:00 p.m.-2:50 p.m. The Four Pillars of Wholesale Lending Emperors Ballroom 1 Presented by Stearns Lending Join the Stearns Lending Wholesale Leadership team for an interactive session around the critical components of Wholesale Lending. Senior Vice Presidents Ryan Rathert, Jon McCash and Nick Pabarcus join Stearns Lending’s EVP of Wholesale Fulfillment, Teresa Reber, to give an overview around four critical components of wholesale lending: Financial Forecasting and Performance, Operational Excellence, Client Experience along with Pricing, and Margin Strategy. While each of the areas are essential to the Mortgage Broker, one section cannot stand alone.

Monday, December 10 8:00 a.m.-5:00 p.m. Eight-Hour NMLS CE Course Emperors Ballroom 1 Separately-ticketed event: Free for NAMB Professional and Associate Members and $79 for Non-Members 9:30 a.m.-10:50 a.m. NAMB Legislative Update Featuring Roy DeLoach, NAMB Lobbyist Emperors Ballroom 2

NAMB National 2018 Saturday-Monday, December 8-10 Caesar’s Palace • 3570 South Las Vegas Boulevard • Las Vegas

11:00 a.m.-5:00 p.m. Certified Veterans Loan Specialist Course Emperors Ballroom 2 A separately-ticketed event: $99 for NAMB Members and $199 for Non-Members. Is your focus on VA loans? Would you like to separate yourself from the competition? Don’t miss this opportunity to become approved for NAMB’s newest certification,

the Certified Veterans Loan Specialist (CVLS). VA loans are an amazing benefit that veterans have earned, and it’s our responsibility as Loan Originators to help them take advantage of it. But to maximize that benefit, a veterans needs their Loan Officer to know all the nuances. Immediately following the class, a test will be given and, upon passing, you will be presented with your certification and all the marketing materials that you need to promote yourself! Limited space is available ... sign up today!

Floor Plan of the Augustus Ballroom, Caesar’s Palace

FBC Mortgage ........................................................101 Finance of America Reverse ..................................513 First Funding ..........................................................611 First National Bank of America ..............................917 Flagstar Bank ..........................................................211 Focus IT ..................................................................815 Franklin American Mortgage Company ..................113 Freddie Mac ............................................................908 Freedom Mortgage Corporation ............................605 FundLoans ..............................................................916 Greenbox Loans......................................................712 High Tech Lending ..................................................915 Homebridge Wholesale ..........................................401 Home Point Financial ..............................................902 HomXpress Mortgage Corporation ........................215 Impac Mortgage Corporation ................................920 JCap Private Lending..............................................104 Land Home Financial Services ..............................714 LD Wholesale ..........................................................711 Lender Price ............................................................406 Liberty Home Equity ..............................................713 LoanStream Mortgage ............................................903 Mortgage Educators ..............................................707 Mortgage Information Services ..............................705 Motto Mortgage ......................................................914 Mountain West Financial ........................................405 NAMB ......................................................................807

NAMB Plus..............................................................900 Nationwide Property & Appraisal ............................314 NMP ........................................................................801 Orion Lending..........................................................105 Pacific Union Financial............................................800 Penny Mac ..............................................................407 Plaza Home Mortgage ............................................704 PRMG......................................................................501 Professional Chats ..................................................103 Quicken Loans ........................................................114 RCN Capital ............................................................509 REMN ......................................................................410 Retirement Funding Solutions ................................107 Reverse Mortgage Funding ....................................715 Reverse Vision ........................................................806 Royal Pacific Funding ............................................206 Scotsman’s Guide ..................................................112 Southwest Bank/Simmons Bank Warehouse ........111 Stearns Lending ......................................................310 Synergy One Lending/Retirement Funding Solutions ..300 The Money House ..................................................810 UFF West ................................................................913 United Wholesale Mortgage ..................................402 Velocity Mortgage ..................................................203 Visio Lending ..........................................................608

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Company Name Booth # ACC Mortgage ........................................................814 Act Appraisal ..........................................................306 American Advisors Group ......................................804 American Financial Resources................................909 American Mortgage Bank ......................................100 Amerihome ..............................................................905 AmWest Funding Corporation ................................106 Angel Oak Mortgage Solutions ..............................302 Appraisal Nation......................................................912 Appraiser Vendor ....................................................904 Avantus ..................................................................201 Axis AMC ................................................................204 Axos Bank ..............................................................812 Blend ......................................................................408 Bluepoint Mortgage ................................................615 Calcap Lending ......................................................400 Caliber Home Loans ..............................................601 Calyx Software ........................................................200 Camber Marketing ..................................................210 Cardinal Financial....................................................701 Carrington Mortgage Services ........................906-907 Cimmaron Software, Inc. ........................................102 Civic Financial ........................................................613 CMG Financial ........................................................710 CoreVest Finance....................................................919 Deephaven Mortgage..............................................205

(as of 11/09/18)

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List of exhibitors

By Brandy George

Property Inspection Waivers Question We have a loan in which the FNMA DU Findings indicated the subject is eligible for a Property Inspection Waiver. The Approve/Eligible results were achieved prior to a hurricane and declaration by the Federal Emergency Management Agency (FEMA) that the county where the subject property resides has been declared a natural disaster. The property did not sustain any damage due to the natural disaster, as evidenced by the consumer and a driveby inspection by the Loan Officer. Can we move forward with the closing utilizing the PIW? Answer Sadly, the answer is No. Once the natural disaster has occurred, FNMA revokes offers of the Property Inspection Waiver (PIV). They do so by following the declared areas as set forth by FEMA. If the loan has not closed and funded prior to the occurrence and is located in the disaster-impacted area, FNMA will only accept the loan for delivery if a full appraisal is prepared after the disaster occurred to ensure it has not been damaged by fire, wind,

falling or rising water, or other causes of loss and destruction. If a property is located in a condo or co-op project, both the condition of the unit and the condition of the building in which the unit is located must be assessed. Loan case files must be resubmitted to DU for refreshed AUS results. In the case where the loan has closed but has not been delivered to FNMA, the lender must determine if the condition of the property has materially changed since the note date. The lender may exercise the appraisal waiver if the condition has not materially changed. In any event, the lender is expected to make prudent and reasonable actions to determine whether the conditions of the property may have materially changed. The lender is ultimately responsible for determining if an inspection of the property and/or a new appraisal is necessary to supports its representations. Lenders should use the following criteria when determining if the mortgage loan can be delivered to Fannie Mae: l If the property has been damaged and the damage does not affect the safety,

soundness, or structural integrity of the property and the repair items are covered by insurance, the lender may deliver the mortgage to Fannie Mae. In these circumstances, the lender must obtain documentation of the professional estimates of the repair costs and must ensure that sufficient insurance proceeds are available for the borrowerâ&#x20AC;&#x2122;s benefit to guarantee the completion of the repairs. l If the property was damaged and the damage is uninsured or the damage affects the safety,

soundness, or structural integrity of the property, the property must be repaired before the mortgage loan is delivered to Fannie Mae. l FNMA DU may not be current in relation to disasteraffected areas and could return allowable PIW AUS results. The lender, again, is responsible for determining if the subject property has been affected and how best to support and defend the collateral supporting the mortgage loan. Information contained in this article is not intended to be and is not a source of legal advice.

Brandy George, Six Sigma, is the Executive Director of LCG Quality Control and the Director/Underwriting Operations Compliance of Lenders Compliance Group, the first full-service, mortgage risk management firm in the United States, specializing exclusively in mortgage compliance and offering a full suite of services to independent mortgage professionals. Brandy may be reached by e-mail at Compliance@LCGQC.com.

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*Carrington Flexible A Advantage (Non-QM) product requiremen nts vary depending on the consumerâ&#x20AC;&#x2122;s creedit grade, LTV, DTI, andFICO scores and d may require reserves from 3 to 6 month hs. Ask your Account Executive for additiional 471-9"5;-64;,7 '9,7+7615 ; *1;-%-9"-3"7;96; ; ; / ;-64; ; *;8-50;*'1;-%%-9"-3"7;96; **Restrictions apply; contact c your Account Executive for detaills. ***Carringtonâ&#x20AC;&#x2122;s Investtor Advantage applies to non-owner occup pied business purpose loans only. Loan-to o-value, debt service ratios and state restrrictions apply. Speak to your Account Execcutive for additional details and requirem ments. Does not include: Co--ops, condotels, manufactured, unique prroperties, mixed-use properties, leasehold ds, rural properties, log homes, agricultura ally zoned, properties that provide incomee to borrower, farms or hobby/working fa arms, properties with oil, ga back, non-conforming zoning regulationss that prohibit rebuilding, properties subjeect to rent control regulations. Not permitted: Gift funds, non-traditional credit, Texas T as, or mineral rights, builder model leaseb ,7 7 6-6875 5 ; ,761-"; 968* *+7; ), ),*+; -; '691; .,9+-,2 ,2; ,75947687; *,; 578*64; 0*+7 ; Ineligible states:; ; ; / / ; ; IL<; ! ; "*-65; -,7; 6*1; .7,+91174 4; 96; #** ; #-67 ; 7*,9- - ; -64; 9 9""; 8*'619775 ; NY Y:: Loans require a minimum loan sizze of â&#x20AC;&#x153;conforming balance p plus $1..â&#x20AC;? NY CEMA loans not permitted. ÂŠ Copyright py g 2007-2018 Ca arrington g Mortgage g g Services,, LLC C headquartered q d at 1600 South Douglass g Road,, Suites 110 & 200A,, Anaheim,, CA 92806. 866-453-2400. NMLS ID 260 00. Nationwide Mortgage g g Licensing g System y ((NMLS) S)) Consumer Access website: www.nmlsconsumera access. 32;107;/7. 7.-,1 ,1+761;*) *);('596755 ( ;&%7 %7,5 ,59$ 9$01;'647 47,;107;##-"9) 9)*,699-;!75947619 19-" - ; *,1 ,1$-$ -$7;:76496$ 6$; 81 1 ; "7 "7; ; ;GA: Georgia 095 95;95 95;6*1;-6 6;* * 7,; org. AZ: Mortgage Banker BK-0910745. CA<;:9876574;32 a Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. MN<; 0 #*+.-62 62;!7$ 7$95 951, 1,-19*6; ; 6 51-17;* * 87< ; 95 955*',9 ,9;!75947 47619-"; *,1$ 1$-$ -$7;:*-6;(,* ,* 7 7,;:987657; ; ; ; *7" " ;:775; '++91 1 ; &; ;NV V:: Mortgage Broker License 4068 (Reside ate lock agreement under Minnesota Law. MO<; 955*',9;#* ential to enter into an interest ra Y:: Licensed Mortgage Bankerâ&#x20AC;&#x201D;NYS Dep partment of Financial Services. New York Mortgag age Banker License B500980/107664. RI: Rhode Island Licensed Lender, Lender License 20112809LL. VA: Mortgage Lending). NJ: Liccensed by the N.J. Department of Banking and Inssurance. NY K,, AR, CO, CT T,, DE, E, DC DC,, FL, HI, ID D,, IN N,, IA, KS, KY Y,, LA, ME E,, MD, MII,, MS, S, MT MT,, NE E,, NH, NM M,, NC C,, OH H,, OK K,, OR, PA, SC C,, SD, TN N,, TX X,, UT T,, VT T,, WV V,, WI and WY Y. NOTICE: All loans NMLS ID 2600 (www.nmlscconsumeraccess.org). WA: Consumer Loan Licensee CL-2600. Also licensed in AL, AK -,7;5'3 3 781;1* 1*;8,7 ,7491 1 ;'6477, , ,91 9196$ 6$ ;-64;.,* ,*.7,1 ,12;-. -..,* ,*%%-";$'94 947"9675 ;& & 7,74 , ;"*-6;.,*4'815 15;+-2 -2;%%-,2 ,2;32 32;51-17 ; 0 07,7;95 95;6*;$ $'-,,-617 177;10-1;-"";3*,, ,,* 7 7,5 ,5; 9 9""; '-"9) 9)2 ;!751,9 ,9819 19*65 * ;+-2 -2;-. -.."2 "2 ; 0 095 95;95 95;6*1;-;8*++91 91+761;1* 1*;"764 ; 7,+ ,+5 5 ;8*6491 919*65 ;-64;.,* ,*$,-+5;-,7 ,7;5'3 3 781; to change without notice. This information is for mortgage professionals on nly and is not intended for distribution to consum mers. Carrington Mortgage Services, LLC is not actting on behalf of or at the direction of HUD/FHA o or any government agency. All rights reserved.

n National Mortgage Professional Magazine n NOVEMBER 2018

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Rates BY RALPH LOVUOLO SR.

ates, rates, rates, rates … who really cares about rates! I’ll tell you who—the people who don’t know anything other than going to their office every day by about 10:00 a.m.; get their coffee (maybe bought it on the way at Starbucks of course); look at a few files, usually very few; go to lunch; drink more coffee; waste more time doing something useless and go home to watch some stupid game on TV. Grow up! Become an adult, and I don’t care how old you are, but you piss me off when you act that way. In a video I did the other day, I noted that when I was watching a Darren Hardy video, he mentioned that he had not watched TV since 1980. I was stupefied, flabbergasted, yet unbelievably impressed. This is a guy who has a house on the West Coast in San Diego and a condo in South Florida and he’s 47-years-old. He bought the condo in one of the luxury buildings in South Beach … you know why? Because he works his ass off every day. He has a plan for each day and follows that plan. You too have a choice each day, each hour, each minute and each second to either do something worthwhile or wasteful. And as I’ve been watching, even my friends keep writing about stupid rates. Your excuse is one thing or another … right now, it’s rates. While the real reason is you’re lazy. You really don’t want to work, you want the world to drop business in your lap. Guess what … it doesn’t work that way. Think, make goals, set a plan and get your ass out of the office and go see people who do business and see those who can refer business to you.

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The

Mortgage

Godfather

es... Who Cares!? I’m sick and tired of being nice in my approach to what I do. I was told by one of my partners the other day that I need to tone down my recent rants, that I can’t call people “stupid” or “dumb.” So, I asked myself this question: If you do something stupid or dumb, what am I supposed to do? Oh, that’s right … be nice, motivate them, help them, and don’t point out their faults because you might hurt their feelings. I was just reading a couple of pages from Simon Sinek’s book, Start With Why. I’ve mentioned in the past that almost every day I read a couple of pages, so I’ve read the book about four times now. Brilliant stuff. Today, I read that if you know your “Why” and your gut tells you it is the right thing, then go with your gut, no matter what anyone says. Look, I’m a nice guy when you meet me, but if you are doing the wrong thing, don’t you want me to tell you? One of my clients called me the other day to ask me if he should join a Business Network International (BNI) group. He’s a builder/remodeler and really wants to be just a builder. I suggested that it might be good for business, but did he have the time to find leads for others while he was looking for people to refer business to him. Was it the right use of his time? He concluded, I think rightly so, that his time finding a building lot would be better than sitting in an BNI group. On the other hand, when refis were flowing like the water that flows over the Niagara, being in a BNI group was a very smart move. As to knowledge of what it takes to overcome this “Rate Thing,” I have a couple of points of view that might not be so popular among the Starbucks crowd. Everybody has the same rates, and if you think that’s the reason you’re not doing business, it’s definitely because you didn’t THINK. You might not remember, but when IBM started, they had a motto that

they built into every computer screen. It said “THINK!” You didn’t think. You didn’t put yourself into a position that would allow you to do business regardless of rates. Rates don’t mean anything because everybody has the same rates. Now you’re going to tell me that because people are smarter than ever before, they shop rates more than ever before. You think I don’t know that? You think I never dealt in that market? I dealt in a market that was 17 percent and did more business than anyone else. You know why? Because I had loyalty from my Brokers, because I went to see them three, maybe four, times a week. I worked my butt off, but I wouldn’t stop. When the Brokers told me they were doing business with someone else, I just told them I’d be back again. I wore them down. I charmed them to death. I brought them ideas that they were not getting from anyone else. I could not be beaten. I knew that they were saying the same thing to every other MLO and that those people would turn tail and slink away. I refused to be beaten. You need to get out there and get people to do business with you. Now let’s talk about technology. Are you ready for “blockchain technology?” Do you have any idea what it is? Do you have even a small smattering of what it is going to do to change the market? You better find out. You better be reading and talking to your IT people, because it will improve your ability to do business. And discussing it with your Brokers, when those who do what you do for a living (your supposed competition) puts you higher on the ladder of those they want to do business with. The recent MBA Annual Convention was 80-90 percent about technology. If you are not keeping up with the changes coming, but just waiting for someone to spoon-feed you the

information, you’re being lazy. Maybe you should find some other business to be in. Develop relationships with people. It’s not too late. Get away from Zillow. Did you know they’re starting their own mortgage company? Wonder why? Did you know they are buying and selling houses in certain cities? I don’t care if you’re a retail LO

or work with a Broker, all that matters in the long run is that you have developed a trust relationship with them, see them all the time, help them do what they cannot do for themselves. I have that list of 80 ideas that will help Realtors do more business. Have you seen it? Did you read it? Maybe you should just go get another cup of coffee …

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

heard street on the

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

Non-QM Leads the Way for Angel Oak’s Milestone Q3

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Angel Oak Companies set a record for non-qualified mortgage (nonQM) lending in Q3 2018 as affiliated lenders Angel Oak Mortgage Solutions LLC, Angel Oak Home Loans LLC, and Angel Oak Prime Bridge LLC combined for more than $664 million in non-QM originations. That figure represents a 30-percent increase in volume from Q2 2018 and a 153-percent increase over Q3 2017. This brings the total year-to-date non-QM origination to $1.53 billion as of Q3 2018. In addition to the recordsetting volume, Angel Oak also added over 100 new hires while continuing its national expansion. “The entire mortgage industry has come to recognize the potential and significance of non-QM. It has rebounded incredibly well and has become the primary driver of growth in all aspects of the business. Angel Oak has become recognized as the leader in non-QM and we are thrilled to see our success in Q3, which has been a landmark occasion for both Angel Oak and non-QM as a whole,” said Mike Fierman, Co-Chief Executive Officer of Angel Oak Companies. In addition to record lending volume, Angel Oak Capital Advisors LLC, the investment management affiliate of Angel Oak Companies, ended the quarter with approximately $9.5 billion in assets under management. Angel Oak Capital Advisors also completed a $395.8 million securitization, its largest ever, composed entirely of non-QM residential mortgages sourced through affiliated mortgage lenders Angel Oak Mortgage Solutions, Angel Oak Home Loans

and Angel Oak Prime Bridge. Since 2015, Angel Oak Capital Advisors has successfully completed eight non-QM securitizations, accounting for approximately $2 billion in total securitized residential loans largely backed by mortgages originated through its affiliated mortgage lenders. The record-setting performance of Angel Oak Companies has also led to growth across all affiliates, leading to a dramatic increase in both staff and geographic footprint. Angel Oak affiliates added 108 total new hires in Q3 and now employ 576 staff members. Angel Oak Mortgage Solutions expanded into Wyoming, New Hampshire and West Virginia; retail affiliate Angel Oak Home Loans added seven new branches and now operates in Texas, Louisiana, South Carolina and Alabama; and residential real estate investing affiliate Angel Oak Prime Bridge expanded operations into Tennessee, Mississippi and Louisiana. Acquired in the second quarter, Cherrywood Mortgage LLC, an affiliate of Angel Oak Commercial Lending, began funding loans. “All corners of our business are growing fast. This upward trend is only going to continue as more people inside and outside of the industry come to respect Angel Oak for our stellar line of one-of-a-kind product offerings and our commitment to service,” Fierman said. New American Funding Expands in Northern California

New American Funding has expanded its Northern California territory to include a branch in Santa Rosa, Calif. to be led by

Branch Manager Scott Sheldon. Located in the heart of Sonoma County, New American’s new branch is a full-service home loan provider equipped to meet the mortgage needs of local consumers by offering a complete spectrum of purchase and refinance loan options. “I’m so excited to lead the New American Funding Santa Rosa team,” said Sheldon. “We pride ourselves on being able to find the right loan for the right client and will go above and beyond to make this happen.” Sheldon, a 13-year mortgageindustry veteran, prides his team on their commitment to service and problem-solving at every level, citing a two-hour average response time for any correspondence. “My team is deeply committed to responsiveness and transparency with our clients and our industry partners,” Sheldon said. “We keep everyone involved in the loan process updated every step of the way and, because the technology and support at New American Funding are second to none, this level of connection has become easier.” Regional Vice President Chris Garza saw the benefit of opening a branch in Santa Rosa with city native Sheldon. New NAMB Partnership Offers Mortgage Pros Healthcare Exchange

The National Association of Mortgage Brokers (NAMB) has announced a partnership with health insurance provider Pendella, offering a new virtual healthcare exchange for NAMB members along with anyone within the U.S. working as a mortgage professional.

“The mortgage industry is fiercely competitive for those working to help consumers make the right housing decisions,” said Rick Bettencourt, CRMS, NAMB President. “The last thing we want for NAMB members, or those working in the industry outside of NAMB, is to worry about healthcare coverage, and today’s announcement with Pendella will help our industry bridge the insurance-coverage gap, greatly, and we are excited to watch this program enhance the lives of those working in our marketplace.” Pendella has created a program for NAMB members and industry professionals via a virtual healthcare exchange that provides fantastic benefits such as: Medical Insurance, Vision and Dental Plans, Income Protection, Life Insurance, Business Overhead Insurance, Accident and Illness Plans, and Personal Care Accounts. “The partnership with NAMB is a great option for mortgage professionals to engage in to ensure they, along with their loved ones, have the best coverage needed to maintain great health,” said Bob Gaydos, Co-Founder of Pendella. “Together, Pendella and NAMB worked hard to ensure the offerings available today contain the healthcare tools mortgage professionals demand, and we are hopeful NAMB members and nonmembers take advantage of this fantastic offering.” Mortgage Professionals to Watch l Home Point Financial Corporation has named Phil Shoemaker as the company’s Chief Business Officer, where he will be responsible for third-party originations, customer retention and technology.

l WFG National Title has announced that Matt Slonaker is joining the company as Senior Vice President of National Business Development. WFG National Title has also named Theresa Williamson as Senior Vice President, Compliance and National Training Manager, where she will manage the company’s existing learning management platform, WFG Scholar, as well as overseeing the transition to a new platform in the near future. l Mortgage Network Inc. has opened a new branch in Wall, N.J., serving the southern New

Jersey market, to be led by Branch Manager Michael Martone, a 25-year mortgage industry veteran and a former U.S. Marine. Mortgage Network has named Katherine Castro Eardley as a Senior Loan Officer in its Burlington, Mass. branch. Mortgage Network has also announced the opening of a new branch in Newport News, Va., its first in the state, to be led by Rhonda D’Bene, a 30-year veteran of the residential mortgage business and a Virginia native. l Element Funding has added South Florida local and industry

veteran Greg Downs as the newest Loan Officer in its West Palm Beach, Fla. location. l New Britain Mortgage LLC, based in Chalfont, Pa, has named Brian Giardino as its new Chief Executive Officer. l Waterstone Mortgage Corporation has announced the opening of a new office in Tulsa, Okla., to be led by Branch Manager Kerrick Draper. l Angel Oak Mortgage Solutions has announced the addition of seven new Account Executives, including: Jen Bradley in continued on page 55

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l American Financial Resources Inc. (AFR) has announced two key executive promotions, as Laura Brandao has been promoted to President and Bill Packer to the role of Chief Operating Officer. l OpenClose has hired Mark Michel, an industry veteran in enterprise-level mortgage technology systems. Mark has an extensive track record of successful execution during his tenure at lending entities as well as mortgage technology providers. Michel will serve as a Software Integration Analyst. l Redfin has hired Daryl Fairweather as its new Chief Economist. Fairweather comes to Redfin from Amazon, where she was Senior Behavioral Economist. l ComplianceEase has announced that it has named Sanjay Tibrewal as Vice President of Product Management. Tibrewal will be responsible for the vision, roadmap and execution of ComplianceEase’s portfolio of mortgage compliance and risk management products, including its flagship product ComplianceAnalyzer with TRID Monitor. l LERETA LLC has tapped Eric Christensen as its new Chief Strategy Officer, where he will be responsible for product development, corporate strategy, marketing, and M&A transactions. John Stachowsky has joined LERETA LLC as Director of Internal Sales, responsible for LERETA’s inside sales efforts for in mid- and mass-markets. l Fannie Mae has promoted John Forlines to Senior Vice President and Chief Risk Officer (CRO). He had served as interim CRO since March. l The StoneHill Group has announced that Steven Arnold, CMB will join the company as Strategic Initiatives Program Manager, providing senior level leadership in the implementation of a dossier of key projects and transformation activities of strategic importance at The StoneHill Group. l INTEGRA Software Systems has announced that Michael Picker has partnered with the founding Executive Management team of President Jerry Pratt and Senior Vice President Rick Allen, and will serve as INTEGRA’s Senior Vice President of Sales and Marketing. Picker brings more than 20 years of experience to INTEGRA.

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

“This will remain the land of the free so long as it is the home of the brave.” —Elmer Davis, United States Office of War Information, World War II his month, National Mortgage Professional Magazine presents its inaugural list of our nation’s “Best Military Lenders and Originators.” As these men and women so bravely defend our nation, we felt it was time to begin to recognize those who assist these individuals achieve the American Dream of Homeownership. President John F. Kennedy once said, “Guard zealously your right to serve in the Armed Forces, for without them, there will be no other rights to guard.,” and to that end, those in the mortgage industry who cater to our veteran population should be recognized for their work in helping those who serve our nation attain homeownership. For our “Best Military Originators,” we made our selection based on the total VA loans closed in 2017; votes from their industry peers; and an essay on why these individuals are committed to helping active servicemembers and veterans. For the “Best Military Lenders,” we chose this distinguished group based upon total VA loans closed in 2017; and support efforts and community outreach endeavors. Congratulations to the following for making the Dream of Homeownership a reality for those deserving individuals who have sacrificed so much for the protection of our nation and the freedoms of all Americans.

Shannon Alexander Fairway Independent Mortgage Corporation Belton, Texas “As a military spouse, my dedication to veterans stems from more than just my employment, but from a sense of duty to serve those serve this great nation,” says Shannon Alexander, Senior Loan Officer with Fairway Independent Mortgage in Belton, Texas. “I make sure each veteran is well-cared for, from application to post-closing, and ensures the veteran and their families understand the loan process and what will be required of them.”

Michael Ballew Embrace Home Loans Staunton, Va. “As the grandson of a career Marine, I hold a special place in my heart for our military servicemen and women,” says Michael Ballew, Senior Loan Officer with Embrace Home Loans in Staunton, Va. “I pride myself on spending the time and energy necessary to make sure that our military members can be confident they are getting the best deal, information and service. They deserve it.”

Tanja Allen Fairway Independent Mortgage Corporation Harker Heights, Texas “Growing up as a military dependent, I know firsthand the sacrifices that are made not only by our armed forces, but also their families on a daily with holidays, birthdays and special occasions missed so that we can live the lives we are blessed to live daily,” says Tanja Allen, Manager of the Harker Heights, Texas branch of Fairway Independent Mortgage Corporation. “This is really a very small way for me give back to our servicemembers and their families by making their loan process smooth and stress free.”

James Beard Fairway Independent Mortgage Corporation Medford, Ore. “Veterans have a special place in my heart,” says James Beard, Manager of the Medford, Ore. Branch for Fairway Independent Mortgage Corporation. “My oldest son served four deployments and some of those were pretty rough. Having a chance to buy a home for his family helps clarify his vision and purpose back here in the states. A home for a veteran helps give stability and a place they feel secure. It goes beyond the roof and the walls. It’s rooted deep into making them feel significant and important.”

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Jacob Baker Fairway Independent Mortgage Corporation Round Rock, Texas “Our military sacrifice and service us with such dedication,” says Jacob Baker, Loan Officer with Fairway Independent Mortgage Corporation in Round Rock, Texas. “I love to support them here at home with the best buying experience available. It’s the least I can do.”

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Lucia Alami Embrace Home Loans Ashburn, Va. “Having family members and friends who are vets helps me appreciate the sacrifices these patriots and their families, make on a daily basis,” says Lucia Alami, Senior Loan Officer at the Ashburn, Va. Branch of Embrace Home Loans. “Helping veterans obtain affordable homeownership is the least I can possibly do for all they’ve done for us.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

Don Blaize CMG Financial Biloxi, Miss.

Eddie Beauduy BBMC Mortgage Chicago

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“I love to protect those who served this country,” says Associate Sales Manager Eddie Beauduy of BBMC Mortgage in Chicago. “It means a lot to me since I’ve heard some incredible stories from these amazing heroes!”

“Serving our military is especially important in the Biloxi community, because of the strong Navy and Air Force presence,” says Don Blaize, Area Sales Manager for CMG Financial in Biloxi, Miss. “It is my distinct privilege to help current and former military members finance their homes, and claim their share of the American dream. They give so much to our country, it’s an honor to give something back to them.”

Jonathan Robert Bellemore Embrace Home Loans Middletown, R.I. “I serve those who serve to protect because I have many military family members and friends,” says Jonathan Robert Bellemore, a Loan Officer with Embrace Home Loans in Middletown, R.I.

Brian Bockenstedt BankIowa Cedar Rapids, Iowa “I love the United States and what it stands for. I support those that have sacrificed and defended this country,” says Home Mortgage Consultant Brian Bockenstedt of BankIowa in Cedar Rapids, Iowa. “I have witnessed the sacrifice of many veterans and their families. They are the true heroes! I teach VA and military grant classes so those heroes are aware of their benefits. I support the Eastern Iowa Honor Flight, so those unsung heroes get their recognition. I am a Certified Military Home Specialist by Boots Across America.”

Mike Bendebba Fairway Independent Mortgage Corporation White Plains, Md. “As a veteran, I was ill-advised by lenders and agents as to the value of my VA benefit when buying a home,” says Mike Bendebba, Branch Sales Manager for Fairway Independent Mortgage in White Plains, Md. “I purchased two homes, one conventional and the other FHA. It wasn’t until I became a lender that I used my VA loan for the first time. I don’t want anyone to ever lose out on the benefit they’ve earned.” Mariem Bennett Fairway Independent Mortgage Corporation St. Marys, Ga. “As our troops selflessly go off seas to serve and protect our country, leaving behind their most loved treasures, family and friends, I feel compelled to do what I can to give back a little,” says Mariem Bennett, Senior Loan Officer with Fairway Independent Mortgage in St. Marys, Ga. “I give everything to help them provide a safe home for their loved ones. Every time I close a VA loan, it is a reminder of our good fortune. There are great men and women fighting for our country.” Richard M. Bettencourt Jr. Mortgage Network Inc. Danvers, Mass. “I come from a long and proud family history of veterans,” says NAMB President Richard Bettencourt, Branch Manager (NMLS#: 7810) of the Danvers, Mass. office of Mortgage Network Inc. “I couldn’t serve because of asthma, so this is my way of giving back to those who have given us so much. Helping a hero and their family make the dream of homeownership a reality is the best way repay a small portion of a debt that can never be fully repaid.”

Victoria Bonner Fairway Independent Mortgage Corporation Southern Pines, N.C. “I support all veterans,” says Loan Officer Victoria Bonner of Fairway Independent Mortgage in Southern Pines, N.C. “I am a retired Army spouse and proud of it!”

Steven Brand Hancock Mortgage Partners Woodbury, Minn. “After learning how awesome the VA loan is for our veterans, and then finding out 46 percent of all veterans who get a home mortgage are not getting a VA loan, it sent me on a mission to become the best VA lender in my community,” says Steven Brand, Branch Manager of Hancock Mortgage Partners in Woodbury, Minn.

Janiece Rae Brewer Fairway Independent Mortgage Corporation Fayetteville, N.C. “As a daughter of a disabled veteran, I am honored to serve those who serve and protect our country,” says Janiece Rae Brewer, a Loan Officer with Fairway Independent Mortgage in Fayetteville, N.C. “I believe growing up as an active duty military child, it has helped me to understand the military life. Then, as an adult being a military spouse, I was able to gain further insight into the military way of life. This has helped me to understand and work with our military financial needs in mind.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

Sam Bromley Fairway Independent Mortgage Corporation Colorado Springs, Colo. “I have a passion for helping military families purchase homes,” says Loan Officer Sam Bromley of Fairway Independent Mortgage in Colorado Springs, Colo. “It is very rewarding to help someone who has served and earned the benefit of the VA loan. They have sacrificed so much for our country, so to be able to help them purchase a home is my way of giving back to these amazing individuals.” Joe Bulla BBMC Mortgage Chesterfield, Mo. “My mission at BBMC is to protect veterans,” says Joe Bulla, Vice President of Mortgage Lending at BBMC Mortgage in Chesterfield, Mo. “I do this by showing them ‘the power of their payments.’ We all have monthly payments on the mortgage, cars, credit cards, etc. We use their VA eligibility to pay these debts off in half the time, thus saving thousands. Having both my grandfather and uncle serve in the military, I really respect the sacrifice they all make. I give back by serving veterans every day!”

Tamra Carell Loansimple Bend, Ore. “The first time we used our VA to purchase a home, when we got to the closing table, we had a surprise that we had to give $1,700 to close the loan,” says Branch Manager Tamra Carell of the Bend, Ore. Office of Loansimple. “Our Loan Officer did not communicate or structure the loan right. I’ve committed myself that would never happen to another person or another veteran ever. Not on my watch. Our military

Kim Cole Fairway Independent Mortgage Corporation Jacksonville, Fla. “I am proud to be the wife of a retired Marine and the daughter of a retired Navy officer,” says Kim Cole, a Loan Officer with Fairway Independent Mortgage in Jacksonville, Fla. “Helping veterans purchase a home for their family is a small way to repay them for their sacrifice and their service. It is my pleasure to be a small part of helping them achieve the American Dream. Doug Cook Hancock Mortgage Partners LLC St. George, Utah “After a 25-year career in the United States Army, I began a new career in the mortgage industry,” says Doug Cook, Loan Officer with Hancock Mortgage Partners LLC in St. George, Utah. “I quickly realized that there was a huge deficiency and need for veterans to have a mortgage professional specializing in VA home loans that they could trust and relate to … someone who spoke their language and understood their needs. I decided to devote myself to the veteran homebuyer by helping veterans achieve homeownership.” Darren Corder Caliber Home Loans Newark, Del. “At Caliber Home Loans, mortgages are our only business … and our products and services are proof of this dedication,” says Darren Corder, Loan Consultant with Caliber Home Loans in Newark, Del. “Our specialized approach to home financing enables us to deliver exceptional service during every stage of the process. We understand that you have unique, personal needs and expectations, so we work together to deliver exceptional service and help you close your loan to your complete satisfaction.”

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Joshua Campbell CMG Financial Rapid City, S.D. “I believe in providing a ‘red carpet’ mortgage experience to all of my clients, especially veterans and active-duty military,” says Financial Representative Joshua Campbell of CMG Financial, Rapid City, S.D. “VA loan borrowers face unique challenges, sometimes they are new to the area, other times they don’t know how long they will be living there, whatever the situation, I take my time to make sure all questions are answered and my clients feel comfortable. The VA loan is how I serve those who served our country.”

Carlo Colantonio CMG Financial San Antonio, Texas “As a U.S. army veteran myself, serving those who served our country is especially important to me,” says Carlo Colantonio, Branch Manager of CMG Financial’s San Antonio, Texas location. “With so many veterans and active-duty military across the state of Texas, many of us have friends and family who have served or are currently serving. VA home loans are designed to make owning a home more affordable. To give back to our nation’s finest, I have become a specialist in the VA home financing.”

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Andrew Cady Nations Lending Corporation Jacksonville, Fla. “For me, it is much more than just placing families in homes,” says Personal Mortgage Advisor Andrew Cady of Nations Lending Corporation in Jacksonville, Fla. “It comes down to serving those who have served and helping them get into a mortgage that they have earned. I love educating the public and Real Estate Agents on the benefits of the VA home loan program and truly consider myself a veteran advocate.”

gives up their time, with friends and family. They serve us, and I serve them.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

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Kris Crane Crane Financial Group d/b/a American Pacific Mortgage Snohomish, Wash. “I am honored to support those who serve and protect us every day,” says Kris Crane, Branch Manager of Crane Financial Group d/b/a American Pacific Mortgage in Snohomish, Wash. “As a daughter with a family who served, I understand the sacrifices made by the servicemembers and their families. I am glad to provide the support, information and guidance for them with their home financing so that they can make the decisions for their families and provide a home for them.”

Douglas Diemer American Pacific Mortgage d/b/a Military Home Loans San Diego “As a graduate of Notre Dame, my path in life has been shaped as the son of an old Army guy who lived the motto ‘This We’ll Defend,’ and an institution that owes its existence to the Navy,” says Douglas Diemer, Loan Officer with American Pacific Mortgage d/b/a Military Home Loans in San Diego. “Though I often wish I had served, the next best thing I can do to honor my father and the institution that helped shape me is serve those in the memory of that which shaped me.”

Jay Davis State Bank of Dekalb Texarkana, Texas “Helping our active and retired servicemen and servicewomen through the homebuying process is one of the greatest joys as a Loan Officer,” says Jay Davis, a Mortgage Loan Officer with State Bank of Dekalb in Texarkana, Texas. “I am a Certified Military Home Specialist recognized by Boots Across America, earning the nick name ‘VA Jay’ from my peers. These are our nation’s heroes, and it’s an honor to provide them with the best advice and loan options to accomplish the American dream of buying a home!”

Kelly Drummond Fairway Independent Mortgage Corporation Topeka, Kan. “Being a child of someone who served in the armed forces, I have insight into their sacrifice and commitment,” says Loan Officer Kelly Drummond of Fairway Independent Mortgage Corporation in Topeka, Kan. “I want to honor all of those have served, and are currently serving. It is my privilege to guide them through one of life’s most important milestones.”

William Dawes Fairway Independent Mortgage Corporation Salem, Ohio “The most important asset a person possesses is time,” says William Dawes, Branch Manager of the Fairway Independent Mortgage office in Salem, Ohio. “Those who serve have given their time in service to their nation. They have given their greatest asset, the one thing they will never get back. They have taken time away from their families, their friends, their lives to serve their country. It is an honor and a privilege to offer them a key benefit they receive for that sacrifice of time—the VA Loan.” Brian Dewald Fairway Independent Mortgage Corporation Broomfield, Colo. “At Fairway, we love working with the folks who help keep our country safe and free,” says Brian Dewald, Loan Officer with Fairway Independent Mortgage in Broomfield, Colo.

Brett Dickey Guild Mortgage Company Prattville, Ala. “As the son of a retired colonel and a veteran myself, I know first-hand the benefits, as well as the challenges and demands, of military lifestyle,” says Sales Manager Brett Dickey of Guild Mortgage Company in Prattville, Ala. “Active servicemembers and veterans have dedicated their lives to protecting our freedoms, and it’s my distinct honor and privilege to assist with the homebuying process.”

Aaron Duez Caliber Home Loans Jacksonville, Fla. “I have made it my mission to save a veteran by donating to K9’s for Warriors,” says Aaron Duez, Sales Manager with Caliber Home Loans in Jacksonville, Fla. “We lose 22 veterans a day to suicide which is unacceptable. For every VA loan closed, I donate $1,000 towards this cause. Being in the Marines myself many years ago, I have a true understanding as to what these men and women are going though. We continue to sponsor a minimum of two K9’s each year.” Rick Elmendorf Caliber Home Loans Fairfax, Va. “My father spent more than 58 years of his life serving our military families … 20 years, two months and 20 days in the Air Force as a pilot and another 38 working for the top financial planning organization to the military,” says Team Sales Manager Rick Elmendorf of Caliber Home Loans in Fairfax, Va. “I learned to love, respect and honor those who serve. You can read more in “My Story” online at https://www.linkedin.com/pulse/militarymortgages-my-story-rick-elmendorf/.” Mike Elliott Fairway Independent Mortgage Corporation Great Falls, Mont. “I serve because I have also served in the military,” says Mike Elliott, Branch Manager of Fairway Independent Mortgage’s Great Falls, Mont. Location. “The military consists of such great folks that are just the salt of the Earth!”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

Justin Exner Fairway Independent Mortgage Corporation Gainesville, Va. “To honor their service to our great country and give them my best the way they honor us with their sacrifice,” says Justin Exner, Area Manager for Fairway Independent Mortgage in Gainesville, Va. “It is the least we can do and I am humbled to have the opportunity to give back in any way I can.”

Nigel Farnsworth American Pacific Mortgage Clearfield, Utah “The very reason I work so hard for our veterans is because they sacrifice so much for our freedom,” says Senior Mortgage Consultant & Sales Manager Nigel Farnsworth of American Pacific Mortgage, Clearfield, Utah. “It’s very rewarding for me to help a veteran obtain homeownership and help them entrench their roots in the very place they provide our freedom. Being a veteran myself, I understand the stresses of our veterans, and helping any veteran find stability with homeownership is my way of giving back.”

Laura Franks Fairway Independent Mortgage Corporation Killee, Texas “I have a deep-rooted sense of obligation to give back to those who have chosen to dedicate their lives to the protection of our way of life, values and culture,” says Loan Officer Laura Franks from Fairway Independent Mortgage in Killee, Texas. “Our soldiers and their families sacrifice so much for us and, living in a military town, I witness it with my own eyes every day. It is my honor to care for them when it comes to fulfilling their own American dream of homeownership.”

Danielle Garcia Fairway Independent Mortgage Corporation Temple, Texas “I live in a military town and come from a military family,” says Danielle Garcia, a Loan Officer at Fairway Independent Mortgage in Temple, Texas. “I have friends who have served and still serve, so of course, I have a very soft spot in my heart for veterans and their families. I love to help them buy their dream homes.”

Frank Garramone Fairway Independent Mortgage Corporation Marlton, N.J. “Veterans deserve to be treated with the utmost respect,” says Frank Garramone, Branch Manager at Fairway Independent Mortgage in Marlton, N.J. “We are committed to taking great care of people who are looking to buy or refinance a home.”

Bryant Gatz Fairway Independent Mortgage Corporation Indianapolis “I serve those who serve to protect because they have sacrificed so much for myself and my family, complete strangers,” says Loan Officer Bryant Gatz of Fairway Independent Mortgage Corporation in Indianapolis. “This is my way of thanking them.”

Larry Gonzales Aligned Mortgage Waipio, Hawaii “I served in the U.S. Navy for 24 years and took my greatest joy in helping my sailors achieve success personally and professionally,” says Larry Gonzales, Senior Loan Officer with Aligned Mortgage in Waipio, Hawaii. “I continue in that same manner as a Loan Officer, educating and enabling veterans to own a piece of the land they swore to defend.”

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Nicholas Foley American Pacific Mortgage Waipio, Hawaii “I have been around servicemen and women my whole life, and have always taken pride in serving them,” says Nicholas Foley, Loan Officer with American Pacific Mortgage in Waipio, Hawaii. “What better way to help them own a piece of land they help protect!”

“I come from a family of veterans,” says Patton Gade, Sales Manager with BBMC Mortgage in Phoenix. “My dad, my brothers and myself all served in the Army. I was named after General Patton and graduated from West Point. I understand veterans and the unique challenges that they face every day. I live with the code of Duty, Honor, Country and it is my Honor to serve our veteran community. I am proud to be a veteran, and relish the opportunity to serve veterans.”

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Mark Field Barrett Financial Group Phoenix “As a U.S. Navy submarine veteran, I am honored to provide mortgages to veterans and disabled veterans throughout Arizona,” says Mortgage Loan Originator Mark Field of Barrett Financial Group in Phoenix. “I have 20 years mortgage experience and visit clients in person, picking up document and provide a mobile notary to allow them to sign closing documents at their home. I received the Mortgage Loan Originator of the Year for 2017 and a Proclamation from the Arizona Legislature for my efforts to support veterans in Arizona.”

Patton Gade BBMC Mortgage Phoenix

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

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Shane Guillory CMG Financial The Woodlands, Texas “With the huge Texas military presence, VA loans are an important part of serving our community,” says Shane Guillory, Sales Manager with CMG Financial in The Woodlands, Texas. “The most important part of my job is educating clients about their mortgage options and guiding them through the process. Working with veterans and active-duty military is a way for me to support our military and growing strong neighborhoods through homeownership.”

Peter Horiszny CMG Financial Tampa, Fla.

Mirta Hernandez Gateway Mortgage Group LLC Universal City, Texas “I come from a military family, as my grandfather fought in World War II and my father served as well … they are dear to my heart,” says Mirta Hernandez, Loan Originator at Gateway Mortgage Group in Universal City, Texas. “I love to help families whose family member goes out every day to serve our country. This is the least I can do to give back to them.”

Deborah Huddleston Gateway Mortgage Group Killeen, Texas “For the last 25 years, it has been my pleasure to serve our nation’s heroes and families by financing the American dream of homeownership,” says Deborah Huddleston, Branch Manager of Gateway Mortgage Group in Killeen, Texas. “It’s a joy to give back to those who have sacrificed so much and to offer them the opportunity of homeownership. I am honored to be part of the peace and security that a veteran feels in their own home, strengthening their families which strengthens our nation!”

Caren Jones Hildinger Fairway Independent Mortgage Corporation Belton, Texas “I’m proud to work for a company where the employees desire to give back to our military families through their time, talents and financial resources,” says Caren Jones Hildinger, Certified Mortgage Planning Specialist with Fairway Independent Mortgage in Belton, Texas. “Our mission is to educate and serve our real estate professionals and military community through the joint efforts of our own non-profit, the American Warrior Initiative … whether it’s helping a military servicemember, or a family in need by the gift of a service dog or a mortgage free home.” Brian Hofmann GSF-Mortgagenerds.com Appleton, Wis. “I believe in helping veterans because they have earned every right to obtain the best possible mortgage and mortgage experience,” says Mortgage Lender Brian Hofmann of GSF-Mortgagenerds.com in Appleton, Wis. “I have seen too many companies and Loan Officers take advantage of our servicemen and women. It is important that the veterans have an advocate on their side to make sure they are being put in the best financial situation. I do everything I can to help educate veterans, Realtors and other lenders.” Patrick Holland Embrace Home Loans Fairfax, Va. “As a son of a Naval Officer and teacher, I saw firsthand what it meant to give more to others and what it means to serve,” says Branch Manager/Vice President Patrick Holland of Embrace Home Loans in Fairfax, Va. “Helping our veterans achieve homeownership is my way to say thank you for providing the blanket of freedom I sleep under each night.”

“Serving our military through the VA loan is an important part of my job,” says Branch Manager Peter Horiszny of CMG Financial in Tampa. “Tampa is home to the MacDill Air Force Base and other surrounding military installations. Originating VA loans for active-duty military and veterans is a way for me to thank these heroes for their service. I look forward to continuing the honorable tradition of VA lending.”

Alex Jimenez Hancock Mortgage Partners Spring Hill, Tenn. “Our nations heroes have sacrificed so much to ensure the protection of life, liberty and the pursuit of happiness for America and its citizens,” says Alex Jimenez, Branch Manager of Hancock Mortgage Partners in Spring Hill, Tenn. “The least I can do to give back is to make sure I serve those who have served to the highest level of my ability when they decide to purchase a home in the great country that they fought to protect. This is America, land of the free because of the brave!” Colby Jones Low VA Rates Lindon, Utah “I enjoy working with those who have served to protect because they understand the importance of getting things done in a quick and professional manner,” says Colby Jones, Loan Officer with Low VA Rates in Lindon, Utah. “This typically means that they will hold me to the same expectation. When you have a partnership that works this way, it is hard to fail.”

Todd Jones BBMC Mortgage Lombard, Ill. “BBMC Mortgage supports veteran and active service charities through our Patriot’s Charity Initiative,” explains Todd Jones, President of BBMC Mortgage in Lombard, Ill. “For each participating loan we close, $125 will be directed to a charity of the borrower’s choosing. BBMC started the program in January 2015 and has since donated nearly $3 million to our charity partners. Together, we work to assist veteran’s issues like homelessness, under employment, mental health, and provide support for deployed servicemembers and their families.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

Geetesh Kapoor Fairway Independent Mortgage Corporation Ellicott City, Md. “I make it my mission to give back through education on mortgages and entitlements,” says Geetesh Kapoor, Branch Manager of Fairway Independent Mortgage in Ellicott City, Md. “I ask myself each day, ‘am I worth dying for?” I identify local ways to give back to the military community on a regular basis, and donate a percentage of my income to the American Warrior Initiative.”

Charles P. Lape II Embrace Home Loans South Portland, Maine Charles P. Lape II, Senior Loan Officer at Embrace Home Loans in South Portland, Maine, explains, “The least I can do is repay those who have given so much to ensure our freedoms and our way of life.”

Kory Kavanewsky CMG Financial Coronado, Calif. “The VA loan is one of the best benefits available for veterans,” explains Kory Kavanewsky, Branch Manager/Loan Officer with CMG Financial in Coronado, Calif. “Guiding veterans and active-duty military through the VA loan process is a way for me to serve those who protect our country. The Coronado and San Diego areas are home to several military bases, and providing home financing solutions to military members is a way to strengthen this special community.”

Blake Law Low VA Rates Las Vegas

Daniel Kenyon Embrace Home Loans Middletown, R.I. “I serve those who protect because they sacrifice so much of their lives to insure my family is safe,” explains Daniel Kenyon, Loan Officer at Embrace Home Loans in Middletown, R.I. “Things that I get to do each day are the things they lose which is an incredible sacrifice on their part. The servicemembers who I help can never get any of the lost experiences back, but at least I can try to help them with their dreams of homeownerships and financial security.”

Heather Livingston Academy Mortgage Columbia, S.C. “I wasn’t in service myself, so this is my way of giving back,” explains Heather Livingston, a Loan Officer with Academy Mortgage in Columbia, S.C. “It is a wonderful benefit that most of our veterans have no knowledge about. It is important that we educate them on what’s available for what they did for our country.”

Ralph King Embrace Home Loans Middletown, R.I. “My aim is to always provide exceptional customer service to my borrowers,” says Loan Officer Ralph King of Embrace Home Loans in Middletown, R.I. “I find the best way to do so is to discover how I can meet their present day needs and to assist in their financial planning for the future. In working on behalf of our veterans, it is my way of being able to give back to those who have already given so much.”

Timothy McConnell CMG Financial Jacksonville, Fla. “Jacksonville, Fla. is home to the third largest military presence in the country,” details Senior Loan Officer Timothy McConnell of CMG Financial in Jacksonville. “Veterans and active-duty military make up a significant share of my clients and my community. The VA loan has been the foundation of veteran homeownership since World War II. Every VA loan I originate is part of our country’s commitment to serving our military.”

Susan Kinsey Access National Mortgage Reston, Va. “I understand what challenges military families undergo during training periods, deployments and transfer of duty stations, which means moving their family and the stress it can cause,” notes Mortgage Banker Susan Kinsey of Access National Mortgage in Reston, Va. “I am honored that more than 95 percent of my clients are veteran families, and that I can be here to serve them by making their mortgage transaction as stress-free as possible. This is my way of saying ‘Thank you for your service’ and the chance to serve you!”

Christopher Minjarez CMG Financial Austin, Texas “Texas is home to many military installations, including Austin’s Camp Mabry, and Ford Hood, the largest active-duty post in the country, only 60 miles northeast,” explains Christopher Minjarez, Area Sales Manager with CMG Financial in Austin, Texas. “Working with veterans and active-duty military is important to building a strong community of homeowners. Originating VA loans supports our entire military community and it is my privilege to be able to serve those who have served our country.”

“The gratifying feeling of helping veterans understand the VA loan benefit is second to none,” explains Blake Law, Loan Originator with Low VA Rates in Las Vegas. “The VA loan does more for veterans than most people understand. I choose to help the veteran community because, in many cases, they’ve given their entire all, and more, to protecting and serving us.”

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National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

Debbie Mishko American Pacific Mortgage Gig Harbor, Wash. “As I am also prior military, my understanding, empathy and pride for all those who serve, or have served is immense,” states Loan Advisor Debbie Mishko of Gig Harbor, Wash.-based American Pacific Mortgage. “Patriotism is paramount. Sacrifice is selfless and inevitable. I know that our freedom is a direct result of those servicemembers who imbibe in this belief. When I have the opportunity to work with a veteran, I feel nothing more than honor and appreciation. These people are all heroes in one way or another.” Shirley Mueller First Choice Loan Services Austin, Texas “I provide a specialized service to veterans who desire to buy a home for themselves and their families,” says Shirley Mueller, Senior Mortgage Loan Originator with First Choice Loan Services in Austin, Texas. “The act of helping veterans in this capacity is beyond rewarding. Getting to know so many amazing veterans who each have a story to tell brings my team and I more of a purpose than just originating loans. We are helping real people who have been through and seen more than we could ever imagine.”

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Jessica Ochoa Fairway Independent Mortgage Corporation Richmond Hill, Ga. “Coming from a long family line of military servicemembers, it is very important for me to continue the legacy by helping other military families as well,” explains Loan Officer Jessica Ochoa of Fairway Independent Mortgage in Richmond Hill, Ga. “As a witness to some of the struggles and hardships that our military families face, I take pride in knowing that I can offer the best possible one-onone customer service experience, VA loan expertise, quick response time, and on-time closings to help make the homebuying experience both smooth and fun.” Wayne Palkovic Embrace Home Loans Martinsburg, W.Va. Wayne Palkovic, Senior Loan Officer with Embrace Home Loans in Martinsburg, W.Va., notes, “It is my honor and duty to serve those who have served our great country!”

Clay Murray American Pacific Mortgage Corporation San Diego “Our military members, both active and retired, deserve anything and everything we can do to help them,” explains Mortgage Loan Originator Clay Murray of American Pacific Mortgage in San Diego. “Offering a great product with exceptional service is the bare minimum of what I can do to say ‘Thank You!’”

Andrew Paul Cornerstone Military Lending San Diego “As a retired Navy Seal, I am in tune with the struggles veterans face when buying a home,” explains Andrew Paul, Divisional Vice President with Cornerstone Military Lending in San Diego. “I have made it my mission to make sure vets are served with extreme skill and professionalism using the VA home loan.”

Amanda Musgrove Fairway Independent Mortgage Corporation Springboro, Ohio “We are fifth in the nation for VA lending,” says Amanda Musgrove, Loan Officer with Fairway Independent Mortgage in Springboro, Ohio. “We are committed to serving our clients with streamlined process, lower costs and thing is certain … we roll out the red carpet for our military! It’s our way of giving back to the community, with closing windows as quick as seven business days. We are also active in the AWI, as our way of giving back. Our military, literally, put their hearts on the line to serve us.”

David Piatek Caliber Home Loans Fairfax, Va. “Giving back to the military community is both an honor and a privilege,” says David Piatek of Caliber Home Loans. “As a current member serving the National Guard and having helped thousands of military members utilize the VA home loan to achieve homeownership, I’ve seen the struggles families have encountered and lack of education that is available to the military community. I’ve made it my mission to promote housing education and help as many military members as possible.”

Jordan Newcomer Fairway Independent Mortgage Corporation St. Louis, Mo. Jordan Newcomer, Loan Officer for the St. Louis branch of Fairway Independent Mortgage, says, “I love helping veterans get into their homes. Personally, there is no better feeling for me.”

Mark Piburn Embrace Home Loans Lakeland, Fla. “I am honored for the opportunity to serve our military,” says Mark Piburn, Senior Loan Officer with Embrace Home Loans in Lakeland, Fla. “I am safe and enjoy many freedoms due entirely to the service and sacrifice of these fine young men and women. The least I can do is to help them purchase a home.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

Tim Powers Fairway Independent Mortgage Corporation Puyallup, Wash. “Coming from a military family—my dad was a Colonel in the Air Force and my brothers were Marines—I learned firsthand the sacrifices my dad made and our family,” explains Tim Powers, a Loan Officer with Fairway Independent Mortgage in Puyallup, Wash. “I have always had a special place in my heart for the military and love the opportunity to have a chance to serve them in return for all they do.” Adam Pugmire CMG Financial Meridian, Idaho “The VA loan provides veterans and active-duty military with affordable homeownership,” notes Adam Pugmire, Loan Officer with CMG Financial in Meridian, Idaho. “Originating VA loans is a way for me to serve those who have done so much for our country. I enjoy educating my VA clients about their benefit and helping them navigate the mortgage process. To me, it’s more than a mortgage it’s the American dream come true.” Nathan Pugmire CMG Financial Meridian, Idaho

Nathan Rich Fairway Independent Mortgage Corporation Bryan, Texas “Veterans are some of my favorite clients to work with because I can relate to them very easily,” says Nathan Rich, Loan Originator at Fairway Independent Mortgage in Bryan, Texas. “Being a combat veteran myself, I understand the day-today challenges of active duty members and those who have separated from the military. Our military deserves our upmost respect, and when it comes to navigating the homebuying process, I am proud to help them navigate that process while providing them with excellent service.”

Lourdes Rosado Paramount Residential Mortgage Group (PRMG) Miami “My husband is a veteran, served 26 years in three branches of our Armed Forces,” explains Loan Officer Lourdes Rosado of Paramount Residential Mortgage Group (PRMG) in Miami. “I, too, served a short time in the U.S. Army, but was med-boarded out due to an injury sustained during basic training. I serve those whom serve us, with pride. I feel that ensuring that the American dream of homeownership should be done and served to those who preserve our most fundamental rights and liberties.” Erika Saldana Fairway Independent Mortgage Corporation San Antonio, Texas “My grandfather is a World War II veteran, my father is a Vietnam veteran, and my brother is also an Army/medic veteran and currently serving Homeland Security,” says Erika Saldana, Loan Officer with Fairway Independent Mortgage in San Antonio, Texas. “Seeing how committed they were and are to serve our country and putting their lives on the line for our freedom compels me to help our veterans with the most important transaction in their lives … their HOME. It’s a true honor serving our veterans.”

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Ericka Quichocho Fairway Independent Mortgage Corporation Lakewood, Wash. “I love helping active duty and retired veterans and their families because they have sacrificed so much for us and for the freedoms that we enjoy and often take for granted,” states Ericka Quichocho, Loan Officer with Fairway Independent Mortgage in Lakewood, Wash. “They deserve to be treated with the utmost respect for choosing to serve others over themselves.”

Cheryl Rodriguez Fairway Independent Mortgage Corporation Killeen, Texas “It’s everyone’s dream to own a home,” says Cheryl Rodriguez, a Loan Officer with Fairway Independent Mortgage in Killeen, Texas. “It’s one of the most important yet scariest times in someone’s life. Add being in the military to that equation with deployments, establishing housing within a short window and having to pack up your family to move across the country. Having been a military dependent, I can’t think of a better way to show my gratitude than trying to relieve a little bit of stress during an already stressful time.”

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“The VA loan is one of the most low-cost mortgage options available,” says Branch Manager Nathan Pugmire of the Meridian, Idaho branch of CMG Financial. “I truly enjoy working with veterans and active-duty military because it gives me a chance to serve those who have served or are serving our country. With Mountain Home Air Force Base less than an hour away, the military is an important part of the Meridian community.”

Kevin Richardi Embrace Home Loans Middletown, R.I. “I am committed to our vets, they have sacrificed so much and deserve the best,” explains Senior Loan Officer Kevin Richardi from Embrace Home Loans in Middletown, R.I. “As a veteran, I was ill-advised by lenders and agents as to the value of my VA benefit when buying a home. I purchased two homes, one conventional and the other FHA. It wasn’t until I became a lender that I used my VA loan for the first time. I don’t want anyone to ever lose out on the benefit they’ve earned.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

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Clay Schmeisser Fairway Independent Mortgage Corporation Las Vegas “I feel it is my duty to give back to those who have served and continue to serve our country,” says Branch Manager Clay Schmeisser of Fairway Independent Mortgage’s Las Vegas location. “These individuals are the reason I have my home, and I will go above and beyond to ensure that the homebuying experience is an amazing one for them and their families. They have enough to worry about ... buying a home should not be one of them.”

Stephanie Smith Fairway Independent Mortgage Corporation Newnan, Ga. “To me, there is nothing more honorable than serving your country,” states Loan Officer Stephanie Smith from Fairway Independent Mortgage’s Newnan, Ga. branch. “These men and women sacrifice so much. They are separated from their families, friends and community. I am honored and humbled to be able to help veterans purchase a home. I am thankful for their service.”

Tracy Schmittou Fairway Independent Mortgage Corporation Clarksville, Tenn. “I serve those who protect because that is what I love to do,” says Tracy Schmittou, Loan Originator with Fairway Independent Mortgage in Clarksville, Tenn. “I’ve lived in a military town my whole originating career, and I don’t know what I would do without my active duty and retired military families.”

Aisling Soler Embrace Home Loans Middletown, R.I. “Thank you to all of our U.S. veterans for their service to our country,” says Aisling Soler, Loan Officer with Embrace Home Loans in Middletown, R.I. “I am always honored to work with veterans to help with home financing for new home purchase using the borrower’s VA eligibility or to refinance to find the best possible terms to suit your current financial situation.”

Ashley McKenzie Sharpe Fairway Independent Mortgage Corporation Winston Salem, N.C. “The brave men and women of the U.S. Armed Forces have endured incredible hardships and sacrifice to defend our freedom,” states Senior Mortgage Planner Ashley McKenzie Sharpe from airway Independent Mortgage in Winston Salem, N.C. “They often face uphill battles when it comes to homeownership. I am dedicated to helping these men and women realize their dream of owning their own home.”

Joel Sparta Aligned Mortgage San Antonio, Texas “As a retired veteran myself, I’ve seen firsthand how the industry is riddled with misinformation, and often, the entire process can be overwhelming,” explains Joel Sparta, a Mortgage Loan Originator with Aligned Mortgage in San Antonio, Texas. “From understanding the power of the VA home loan benefit, to implementing the benefit in a way that is most advantageous to the veteran deserves someone who has been in their shoes, understands the challenges and importance of fighting for every veteran and their ability to leverage every benefit they have earned!”

Carter Short American Pacific Mortgage San Diego “I am a Navy veteran who had been misinformed myself on prior purchases about using the VA home loan benefit and made it my stance to educate/inform those that are serving or who have served,” says Carter Short, Senior Loan Advisor with American Pacific Mortgage in San Diego. “I am part of the San Diego founding board of the Veterans Association of Real Estate Professionals (VAREP), which was started on July of 2013 and have watched our organization flourish because of our commitment to serve those who have served.” Sarah Slaysman Embrace Home Loans Berlin, Md. “U.S. veterans work hard to protect all American citizens and our national interests,” states Loan Officer Sarah Slaysman of Embrace Home Loans in Berlin, Md. “It is an honor for me to be able to give back by providing superior customer service and specialized knowledge when a veteran is buying a home.”

Scott Stevens Embrace Home Loans Middletown, R.I. “My dedication to my customers means helping them navigate through refinance and purchase loans every step of the way,” says Loan Officer Scott Stevens from Embrace Home Loans in Middletown, R.I. “To make sure the process goes smoothly, I maintain constant contact with my customers, day-in and day-out.”

Jason Stier Benchmark Mortgage Plano, Texas “I see my father, a Vietnam vet, in all my clients,” explains Jason Stier, a Loan Officer with Benchmark Mortgage in Plano, Texas. “He is my ‘why’ and so is every active military and veteran client I have. No more will they be denied a first-class mortgage experience. They keep my family safe, and this is the least I can do in return.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

Frank Virga Embrace Home Loans Hauppauge, N.Y. “I love the opportunity to serve veterans after all of the sacrifices they have made for all of us,” notes Frank Virga, Senior Loan Officer with Embrace Home Loans in Hauppauge, N.Y. “The opportunity to assist them and educate them with a future home purchase or refinance is extremely rewarding.”

Laura Tremaine Fairway Independent Mortgage Corporation Tucson, Ariz. “I am committed to helping servicemembers who give up so much for our country just by going to work every day the opportunity to have a safe and happy home when they return from duty,” says Laura Tremaine, Branch Manager of Fairway Independent Mortgage’s Tucson, Ariz. office. “Helping veterans and active servicemembers get into their homes is a small way I can give back for all they have sacrificed.”

Courtney Walker Fairway Independent Mortgage Corporation Tucson, Ariz. “Having a son with two Purple Hearts, a husband, brother and father who are all veterans, we believe in our role to serve and educate our community and veterans,” says Branch Manager Courtney Walker of Fairway Independent Mortgage’s Tucson location. “Fairway supports and engages with the American Warrior Initiative, designed to educate the public and real estate community on how we can help our veterans in our day-to-day lives, and better understand about what they deal with and how best to be of help.”

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Shane Tibiatowski Fairway Independent Mortgage Corporation Fargo, N.D. “As a military veteran who works in an area with limited military personnel, we strive to give the absolute amount we can back,” explains Shane Tibiatowski, Branch Manager with Fairway Independent Mortgage in Fargo, N.D. “We charge no origination fee and we pay for the appraisal.”

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Derek Vandlen Tim Storm Fairway Independent Mortgage Corporation Mortgage Possible Clarksville, Tenn. Newport Beach, Calif. “I was in the U.S. Army for four years,” says “I care most that my VA mortgage clients feel confident Derek Vandlen, Area Manager with Fairway in their home finance decisions and secure through the Independent Mortgage in Clarksville, Tenn. “I feel homebuying or selling process, especially when they I am just trying to help our servicemembers for are dealing with so many other uncertainties through keeping all of us safe.” deployment or moving every few years,” explains Tim Storm, Loan Officer/Sales Manager with Mortgage Possible in Newport Beach, Calif. “I am truly dedicated to personal communication and educating my VA eligible buyers and their real estate agents, and this has been my mission as a California mortgage professional since 1989.” Jimmy Vercellino First Choice Loan Services Inc. Louise Thaxton Scottsdale, Ariz. Fairway Independent Mortgage Corporation “As a proud veteran of the U.S. Marine Corps, I Leesville, La. realized that there was a huge deficiency and “Serving veterans for more than 13 years, I have need for veterans to have a mortgage professional personally seen the challenges facing members of the specializing in the VA home loan they can trust military coming home from war,” said Louise Thaxton, and relate to… someone who spoke their Branch Manager of the Leesville, La. Branch of Fairway language and understood their needs. I decided to Independent Mortgage. “Because of that, I developed devote myself to the veteran homebuyer, fulfilling the designation of Military Mortgage Specialist for Loan a passion of mine, while at the same time, helping Officers and co-founded the non-profit, “American veterans achieve homeownership.” Warrior Initiative” (AWI). The mission of AWI is bringing awareness to challenges facing servicemembers Andrew Vierra returning from war–and educate and inspire Americans to give back. Since WealthWise Mortgage Planning 2015, we have raised $3 million for vets in need.” Folsom, Calif. “Military women and men sign a blank check, Randy Tholl payable to the United States of America, for an Big Valley Mortgage amount up to and including their life,” states Reno, Nev. Andrew Vierra, Branch Manager for WealthWise “As a veteran myself, I want to help educate and Mortgage Planning in Folsom, Calif. “They do this inform my fellow veterans on their home benefits willingly and unselfishly, to protect our rights, and ensure they receive the best products and freedoms and way of life. As a military father and pricing available,” says Randy Tholl, Loan Officer American, I’m grateful for their sacrifice and with Big Valley Mortgage in Reno, Nev. “I like to committed to ensuring that all know the truth make it my goal to get every veteran into a place they can call home. They deserve the best we can about the benefit they’ve earned and—too-often discouraged from using—because of either bias or misinformation.” give them.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

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Cherie Walters Fairway Independent Mortgage Corporation Temple, Texas “I serve our veterans because they deserve this and so much more,” says Cherie Walters, Loan Officer with Fairway Independent Mortgage in Temple, Texas. “They make a daily sacrifice that few choose to make, leaving their lives to save ours. I serve them because they deserve a home to come home to, for their family and for themselves. They deserve to have a place to feel safe, to feel comfort, rest and to be proud of!”

Brian Wilson Fairway Independent Mortgage Corporation Dallas, Texas “I serve those who protect us as they allow us the opportunity to live and work in a safe and secure world,” explains Brian Wilson, Branch Manager with Fairway Independent Mortgage in Dallas. “I also think of my grandfathers and their prior commitments to this great nation, and feel like I am helping pass down the legacy that each of them created.”

Richard Ward Northpointe Bank Colorado Springs, Colo. “The values that I appreciated while serving in the U.S. Army are what continue to drive my passion for serving our military members,” says Richard Ward, Loan Officer with Northpointe Bank, Colorado Springs, Colo. “It’s my mission to make sure that every veteran or active duty member gets an opportunity to own a home in the land in which they either serve or have served to protect. Always do right by the veteran and everything else will take care of itself!”

Matthew Wood Fairway Independent Mortgage Corporation Belton, Texas “My brother was an active duty Army officer for 20 years, so I have firsthand appreciation for what he and others do to protect us,” says Matthew Wood, Regional Senior Vice President of Fairway Independent Mortgage in Belton, Texas. “Veterans deserve to be treated with the upmost care and integrity. Unfortunately, they are not always treated like they should be. I am committed to giving veterans world-class service and ensuring their transition into a new home and a new community goes as smoothly as possible.”

Don Waters Fairway Independent Mortgage Corporation Clayton, N.C. “As a veteran and father of two active duty servicemembers, it is my passion that our military members get the best guidance and service during the mortgage process in achieving the American dream of homeownership,” says Don Waters, Area Manager and Senior Loan Officer for Fairway Independent Mortgage in Clayton, N.C. “We are proud and appreciative of them. The least we can give in return is helping them buy a home, be secure in the knowledge that their family members have the security and comfort of being HOME while they are away.” Kristine Weninger Fairway Independent Mortgage Corporation Beaver Dam, Wis. “I have been in the mortgage business for 19 years and must say this has been a very rewarding career,” says Kristine Weninger, Loan Officer with Fairway Independent Mortgage in Beaver Dam, Wis. “My enjoyment comes from meeting clients, getting to know them and helping them achieve their dreams of homeownership. Over the years, I have met many great people. I meet them as clients, but at closing, we become friends! I believe that when your heart is in your work, you only bring goodness to others.”

Barry Wyllie Academy Mortgage Raynham, Mass. “I am a veteran of the U.S. Army’s 82nd Airborne Division and proud father of three great kids,” notes Barry Wyllie, Branch Manager of Academy Mortgage in Raynham, Mass. “As a commercial airline pilot by training, I started my professional lending career in 2003, due to the unstable and ever changing aviation industry post 9/11, and never looked back! I am very proud to say that I have personally worked with thousands of families in helping them both purchase and refinance homes. My military experience has provided a foundation for my dedication to helping active servicemembers and veterans secure no downpayment financing and providing them with exceptional service.”

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

Branch Managers who successfully complete the initial requirements and commit themselves to continued education earn the designation of Caliber Military and Veteran Lending Professional.

American Financial Network Inc. Brea, Calif. American Financial Network Inc. (AFN) has VA Automatic Authority, which allows this veteran-friendly lender to quickly approve and fund VA loans, often within 21 days. Some veterans qualify with credit scores as low as 580, and with zero downpayment required. Gift funds may be used for closing costs, and there is no cash reserve requirement when qualifying. In addition, costs are reduced for disabled veterans.

Caliber Home Loans Coppell, Texas In 2016, Caliber Home Loans made a major commitment to our nation’s veteran and active military homebuyers. Part of this commitment included the creation of specialized, in-house educational curriculum that prepared team members to meet the changing needs of our military borrowers. Loan Consultants and

Fairway Independent Mortgage Corporation Madison, Wis. Fairway Independent Mortgage Corporation created the non-profit, American Warrior Initiative (AWI) in 2015. The mission of AWI is educate and inspire Americans on the importance of giving back to the men and women of the U.S. military, bringing awareness to the challenges facing servicemembers when returning from war. Fairway employees have donated millions of dollars through payroll deductions to fund hundreds of veteran initiatives, including service dogs, business and family grants, home repairs, vehicles and more.

Gateway Mortgage Group Jenks, Okla. In 2017, Gateway Mortgage Group announced a national partnership with Folds of Honor, a non-profit organization that provides educational scholarships to families of servicemen and women who

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Atlantic Bay Mortgage Group LLC Virginia Beach, Va. Atlantic Bay Cares is the community outreach arm of Atlantic Bay Mortgage Group, with the primary goal of changing lives in communities through doing good and giving back to meaningful causes such as our Veteran’s Cause Committee. Atlantic Bay Mortgage partners with a local brewery for their annual “Buy a Vet a Beer” program on Veteran’s Day, as well as other various military events in our community.

Embrace Home Loans Middletown, R.I. Embrace Home Loans and its employees honor U.S. veterans by volunteering at VA hospitals and homes, supporting many national organizations with their time and donations, and holding fundraising and donation drives for active servicemembers and veterans. Whether building homes, reading to veterans, supporting music therapy programs, or simply spending time listening, Embrace Home Loans is thankful to all military members and understand the sacrifices they’ve made. They support us and our country. Embrace Home Loans proudly supports them.

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American Pacific Mortgage Corporation Roseville, Calif. Jeff Wilson, who previously served for 27-plus years with the U.S. Department of Veterans Affairs (VA), was hired to run American Pacific Mortgage Corporation’s VA Home Loan Division. Jeff has traveled to 31 key U.S. cities to host educational seminars on the truth of the VA home loan benefit. American Pacific Mortgage regularly donates to VA charitable organizations, including Operation Home Front, Veterans First and others. American Pacific Mortgage is extensively involved in VAREP, and was recently awarded the Gold Star Award in Phoenix.

Carrington Mortgage Services LLC Anaheim, Calif. Carrington Mortgage Services LLC is proud to offer VA loans to active duty and retired U.S. servicemembers. Carrington Charitable Foundation, the non-profit of The Carrington Companies, is dedicated to giving back to our communities. CCF’s Signature Programs focus on helping veterans by providing Mobility, Stability, Purpose and Prosperity. Since 2011, the CCF Golf Classic has raised more than $17 million, allowing CCF to provide diverse ongoing assistance to Veterans. For more information, visit CarringtonCF.org.

National Mortgage Professional Magazine Presents …

THE BEST MILITARY LENDERS AND ORIGINATORS 2018

have fallen or have been disabled in combat. For every loan closed through one of Gateway’s retail branch locations, the company commits $5 to Folds of Honor. In May 2018, Gateway announced renewal of its partnership with Folds of Honor which means the company’s total donation should eclipse $200,000 by June of 2019.

Hancock Mortgage Partners LLC Sugar Land, Texas Hancock Mortgage Partners LLC strongly believes in supporting their community by building partnerships with charitable organizations, big and small. Allowing Hancock Mortgage to leverage their resources, the goal of these partnerships is to show love and support to deserving people in their community. Hancock Mortgage Partners places the highest level of value in its clients and feel that it is important to value the community with equal enthusiasm.

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Key Mortgage Services Inc. Schaumburg, Ill. In addition to VA lending, Key Mortgage Services Inc.is proud to have run a clothing drive and donated dozens of bags of clothing to the Veterans Association of Real Estate Professionals (VAREP). Key Mortgage Services are also huge supporters of the Military on the Move program offered by Leading Real Estate Companies of the World and its promoted on the company’s Web site. Key Mortgage partners with agents to bring the most affordable options to these individuals from both sides of the transaction.

Mortgage Network Inc. Danvers, Mass. Based in Danvers, Mass., Mortgage Network Inc. provides mortgage banking services in more than 20 states through a wide variety of retail offices built to fit each local market. Mortgage Network was

recently recognized as a supporter of Run for the Troops 5K, which helps raise awareness of the needs of injured soldiers. Supporting U.S. veterans is one of Mortgage Network’s core values because of the enormous sacrifices they have made for our country.

NewDay USA Fulton, Md. The NewDay USA Foundation has donated $1 million to the Global War on Terror Memorial Foundation and has awarded 48 private military high school scholarships to the children of servicemembers killed or permanently disabled within recent years. Employees and their families have also volunteered more than 1,200 hours this year to various military-tied organizations, including The Baltimore Station, the memorials on the National Mall, and laying wreaths at Arlington National Cemetery and Annapolis National Cemetery.

The Federal Savings Bank Chicago The Federal Savings Bank raises $25,000 annually for the USO through its “Jeans for a Cause” program, where employees can wear jeans every Friday by making a $5 weekly donation. The Federal Savings Bank participates in a Leadership Exchange Program, where military officers observe bankers in office to get a first-hand view of a career in civilian life. John Calk founded East Lake Academy, a Catholic school in a Chicago suburb, and The Federal Savings Bank supports the school through its annual golf event.

heard on street

and production teams for Mid America’s West Coast branches. l FirstClose has announced the addition of Pat Downing as Chief Technical Officer (CTO), responsible for overseeing the development of all technical efforts at FirstClose. l Verus Mortgage Capital has announced the addition of Ketan Parekh, Joseph Kohout, Michael Constas, Chana (Hanna) Gottlieb and Xiaoxiao (Sherry) Overton. Parekh and

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 (516) 409-5555 Newsroom@MortgageNewsNetwork.com

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Nashville; John Combs in Houston, Texas; Trisha Fedrick in Austin, Texas; Craig Forney in Salt Lake City, Utah; Charles Nichols in Greenville, S.C.; and Bridget Trevino in Detroit. In addition to the new AEs, Angel Oak also bolstered their Inside Sales Team with the addition of Michael Williams. Class Appraisal has announced that Gary Ferguson, a technology veteran with more than 25 years of software engineering experience, has joined the company as Chief Technology Officer. Equity Prime Mortgage has added William Carr as Vice President of Sales for its new Jackson, Mich. office. Carr joins Equity Prime with more than 20 years of leadership experience in the mortgage industry. Flagstar Bank has hired Scott Bristol as Senior Vice President and National Production Manager of its retail mortgage business. NewDay USA has announced that former Maryland Gov. Bob Ehrlich, a longtime supporter of U.S. military veterans and their families, has joined the company’s Board of Advisors. Plaza Home Mortgage has announced a new leadership structure and a realignment of some key executive responsibilities. Plaza’s two founders—Kevin Parra and James Cutri—are adding new titles of Chairman and Vice Chairman, respectively. Jeff Leinan, Senior Vice President of National Wholesale Production, has been named Executive Vice President, and will now, in addition to wholesale, be responsible for Plaza’s emerging reverse and renovation lending businesses. Ed Brady, a Bloomington, Ill.based builder and developer who served as the 2016 Chairman of the National Association of Home Builders (NAHB), has been named President and CEO of the Home Builders Institute (HBI), the non-profit partner of the NAHB. Mid America Mortgage Owner and Chief Executive Officer Jeff Bode has announced that the firm has retained Pam Misner as Underwriting Manager. With nearly 30 years of mortgage expertise, Misner will direct Mid America’s mortgage loan underwriting and collaborating on the expansion of origination

his team moved from Window Rock Capital Partners, where they ran the Ventana Home Mortgage conduit that acquired RTLs and other non-QM products. l Roostify has also named Dr. Magid Abraham to the company’s Board of Directors. Dr. Abraham is an entrepreneur and expert on market research, consumer modeling, and information systems. l Appraisal Logistics (ALS) has announced that the company has hired Steven Rouse to serve as the company’s Regional Account Manager in the Midwest.

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Addressing Post-Housing Crisis Issues

Where the Housing Counseling Industry Can Provide Unique Benefit for Independent Mortgage Originators BY PAM MARRON ealing with credit issues left over from the housing crisis, getting credit established where there is none and basic assistance to help consumers improve credit is one of the biggest problems Mortgage Loan Originators see whether they work for a bank or as an Independent Mortgage Broker. In most cases, consumers with credit issues settle for non-Qualified Mortgage (QM) products that have higher interest rates with a greater downpayment, but where guidelines allow them to obtain a mortgage quicker. The decision to accept mortgage products that may not offer the best terms for credit challenged clients is often because of competing contracts and time constraints in a limited inventory housing market, or wanting to lock in at lower rates when interest rates start to rise. But a primary reason is due to a lack of awareness of how to correctly fix credit issues and the length of time it will take. In 2016, an effort was discussed where HUD-approved housing counseling professionals could work with Independent Mortgage Loan Originators to provide in-depth credit help for consumers preparing for homeownership. The idea was to mirror the successful bridge of housing counselors to consumers via Mortgage Loan Originators at banking institutions, where Community Reinvestment Act (CRA) funds could assist with the cost of housing counseling services. But there are no CRA funds available from Independent Mortgage Loan

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Originators, and other options for a credit to assist consumers with the cost of housing counseling had to be considered. Further, errors in credit that resulted from the housing crisis and an increased number of consumers that had incomes above the low to moderate income (LMI) levels required an examination of an acceptable “fee for service” option to assist a new sector of clients in need. The effort started small with a handful of Independent Mortgage Loan Originators and local Housing Counseling Agencies (HCAs) in limited areas. Problems to work out soon became apparent. Mortgage Loan Originators were mostly unaware of HCA services and the HCAs were wary of Independent Loan Originators, often recalling negative stories from past deals. HCA customer service software had the ability to enter a bank name and the Loan Originator associated with a referral, but there was no set entry for an Independent Loan Originator where a lender was yet to be determined. Because of budget constraints, most HCAs had to eliminate assistance for struggling homeowners, but can help homeowners looking for a home, so determining where to send a client for a specific service has to be checked. The mechanics of making this effort work had to be put in place and approval and guidance from HUD was sought. The benefit of finding out about the issues noted above was that an incredible collaboration of professionals from the mortgage, housing counseling, and credit industries came together and

continue to chisel away at avenues needed to connect mortgage industry professionals with the housing counseling industry. For example, all HUD-approved housing counseling agencies assist clients with credit issues, but when it comes to in-depth credit help, counselors that belong to the National Foundation for Credit Counseling (NFCC.org) are trained to handle deeper issues that may take longer to remedy. And there is a bridge between housing counselors and banking institutions, but a bridge needs to be built between independent loan originators and housing counseling agencies. Wish list l What if education about housing counseling services was promoted to Mortgage Loan Originators and Realtors to assist their clients … rather than institutions? l What if there was an ability for a “fee for service” credit that allowed a Loan Originator to continue to utilize housing counseling services, whether they were at a bank or working as an Independent Loan Originator? l What if the Loan Originator or even a Realtor could provide a credit towards a mortgage closing that could be offered to

compensate and incentivize a consumer to get needed housing counseling upfront and that would make a positive difference in their interest rate and downpayment? l What if housing counseling agencies could accept a Fannie Mae 3.2 exported file, order a hard credit report and be able to run a loan through both Fannie Mae and Freddie Mac to catch credit issues that aren’t caught until they are run through both automated underwriting systems? l What if a lender that works both in the retail and wholesale arena could make it a point to show the consumer benefits of utilizing housing counseling services and promote the use of that benefit to both retail and wholesale loan originators? All the above is possible. This article focuses on credit issues, but that’s only the start. The ultimate long-term benefit is to consumers who become aware that there is a way to get into the best possible position to purchase a home with the best interest rate and terms. Stay tuned. Disclaimer: While I am a member of the HUD Housing Counseling Federal Advisory Committee, the opinions noted are those of the author only.

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

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MBA’s 2018 Annual Convention Survey: A Report of Findings By Tom LaMalfa

located from Miami to Seattle, Boston to San Diego and 20 locations in between. All quite purposefully. Of the firms represented in the study, nine produced more than $10 billion YTD through September 2018, another eight produced $1.9-$9.9 billion, and 10 produced less than $2 billion in the first nine months of 2018. The smallest firm, a brokerage, produced $38 million, and the largest in the survey was over $100 billion. The survey group’s mean and median volumes were, respectively, $14.3 billion and $6.1 billion. Recall that the 50 largest firms have a 78 percent share of the purchase business while the next 25 largest share six percent, such that the 75 largest have an 84 percent share. There were 14 depositories in the survey group and 13 nonbanks purposefully. Among the former were 11 commercial banks, two savings banks and one credit union. The non-banks included two homebuilder-owned firms, four privately-owned companies, three each owned by private equity funds and hedge funds, and one Realtor-owned firm. Ten of these firms are retail only shops, six operate in two production channels, seven in three, and four in all four channels–Retail, Correspondent, Wholesale and Consumer Direct. The trend has been to expand distribution by adding channels. It will be interesting to observe this ahead in a down cycle. Will banks return to wholesale? So, size and type of mortgage lender, physical plant location and operating channels are all taken into consideration in who is surveyed and when in the rotation. All efforts are made to mirror as closely as possible the

profile of the MBA’s membership, since the MBA best represents mortgage lenders nationwide. Foremost that is the goal. The purpose of this survey was to ascertain answers to 68 questions, on topics collected in the months between the Secondary Conference and the Convention. In addition, I solicited questions from several folks closely clued in to market developments, as well as from my sponsors. The questionnaire is phone-tested for clarity. Except for the small group surveyed the week before the Convention, all the surveys were conducted face to face at the Convention held in Washington, D.C., Oct. 14-17, 2018. The range of the survey topics is broad and includes: Business expectations, production volume, risk-related issues, financial operations, MSRs, credit data topics, Fannie- and Freddierelated subjects, agency evaluations, and miscellaneous queries that cover the waterfront, from what’s slowing production volume, to the future of the “QM patch,” to a one question evaluation of housing policy over the decades. Finally, readers are advised to use the Scorecard as a guide in reading this Report since I often group Survey findings Question1 asked if the executives expected mortgage interest rates to rise by more than 50 basis points by year-end 2019. Yes, said 19, more than twice as many as saying they wouldn’t increase that much that soon. Question 2 inquired whether they expected next continued on page 62

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“panel of experts.” I rotate the individuals on the panel, but keep the firms largely unchanged from one year to the next. Eleven of the 27 firms have participated on the panel since 2008. Three of the 27 executives surveyed this time around were with firms I’d not before surveyed. Two were large non-banks. The third newcomer was a bank with a good market presence where business associate had recently been named President. For a decade, he had been on the panel, but with a different firm. This is not a study that would have value if it were done randomly over the computer, like Survey Monkey. My background in mortgage finance allows me to understand and capture many of the key issues in the mortgage space. And the quality of my relationships with people gives the survey credibility. These interviews are conducted face-toface with folks I’ve known for decades, people I connect with several times a year, who have no reason to provide false or misleading answers. There are no lies here. Everyone who participates knows and trusts me because of my longstanding relationship with them and/or their firms. Face to face also means that I can repeat a question and clarify if needed. I literally get to watch those surveyed think through their responses. My meetings were arranged weeks in advance of the Convention. The group surveyed included five CEOs, four Presidents, seven EVPs, 16 SVPs and five VPs. Their backgrounds are varied, in finance, production, operations and capital markets. All are mortgage veterans of 20years or longer. The firms are

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reetings, reader. For those reviewing these survey findings for the first time, welcome. My name is Tom LaMalfa. I’ve done research in mortgage finance for the past four decades. Of late, my focus has been on survey research, namely meeting and interviewing senior mortgage executives about major issues and topics inside the business and industry. This is the 21st time since 2008 that this survey has been conducted, distributed and published. I complete it twice annually, at the MBA Annual Convention every October, and each May at the MBA National Secondary Market Conference. This recent MBA Annual was my 39th MBA Convention in 42 years. Before diving into the survey findings, a few words about the survey, its purpose, the survey group, the questionnaire and the survey process itself. Knowing this will explain why these findings are unique, highly credible and useful directionally and as trending markers. Additionally, I’ll add a few paragraphs at the end about my Convention experience this year and do a composite of what I picked up that may be helpful in assessing the operating environment. What makes this survey’s findings useful are the people surveyed, the quality of the input, and the process followed. While I try to reach out to one or two new executives to survey each time I do this research, the lion’s share of those surveyed are longstanding business associates, who are part of my

MBA’s 2018 Annual Convention Survey: A Report of Findings

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year’s originations to exceed this year’s activity. No, responded 24 of 26 executives, 2019 won’t be a bigger year than this. Question 3 wondered if production volume this year was up or down compared with 2017. It’s down in 2018 said twice the number reporting higher volume this year. Questions 4-8 wanted to know what percentage of their firm’s origination volume different products accounted for. The averages and medians were 81 percent/84 percent purchase business YTD, 64 percent/63 percent conventional, 27 percent /30 percent government-insured, 10 percent /15 percent nonagency jumbo, and three percent /0.5 percent non-QM. Questions 9 and 10 asked whether the executives expected their FHA and non-QM volumes to increase next year. Yes, they do, reported 15 of 25 and 22 of 27, respectively. Question 11 inquired if their firms were doing more high-LTV and high-DTI lending this year than they did in 2017. Oh yes we are, said 18 compared to three who said not, and six who reported no change year over year. Question 12 wondered what percent of their firm’s business was in conventional loans with LTVs over 80 percent. Such loans accounted for an average of 41 percent of their production. The median was 30 percent and the range was from five percent to 80 percent. Question 13 asked if the executives felt that industry underwriting standards had declined in recent years. Oh yes they have, said 23 versus three who thought standards hadn’t drifted lower. Questions 14 and 15 dealt with new products and loan sales into PLS (private label securities) this year or last. Of the 27 executives, 22 reported adding at least one new product to their menu in 2017. As for direct loan sales into PLS, only 11 firms did so. Questions 16-18 inquired about year-over-year operating expenses, operating revenues and near-term profit expectations. Nearly twice as many executives said their firm’s operating expenses were up than not, and only five of 27 indicted operating revenues were higher year over year. As for profits, 26 executives said they expect the industry to report negative profits

(losses) in the current quarter and (at least through) the first quarter of 2019. Question 19 looks at one reason why the profit outlook looks so bleak near term: Overcapacity. Executives think there is about 25 percent more capacity–people and firms–than needed to satisfy demand for mortgages. The median was 20 percent. That suggests the industry is one-quarter larger than necessary now and for the next five to six months (at least). Questions 20 and 21 dealt with MSRs: Buy, sell or hold. Of the 27 firms represented in the survey, 23 retain, 12 sell at least some, seven retain and buy, and another 10 retain and sell. About 16 percent, on average, of the MSRs sold are sold through Fannie or Freddie’s servicing exchanges. The range was from zero through 100 percent, with the median being zero. Nineteen of the 27 sold at least some servicing through either Fannie’s or Freddie’s servicing exchange. Questions 22 through 26 asked about using alternative credit data for underwriting, credit scores, tradeline requirements, credit reports and credit scoring models, respectively. About half of the surveyed firms are exploring the use of alternative types of data (e.g. Lexus-Nexus, NCTUE) to ascertain if it strengthens underwriting. Meanwhile, using multiple credit scores (CSs) adds cost not opportunity, according to three times more executives than not. Asked whether their firms maintain their own minimum tradeline requirements, slightly more said no than yes; the noes instead largely adhering to their investors’ requirements. However, credit reports not updated for two years or more were a no-no for most. Only two of the 27 will underwrite a mortgage with a dated credit report, and they do it manually. As for a credit scoring model’s predictive value, historical data is critical, with the response garnering a 7.8 on the scale of one through 10 and a median of eight. Questions 27 through 36 inquired about various aspects of the GSEs’ programs and policies. Using our scale of one through 10, we asked for assessments of Freddie’s Loan Advisor Suite and Fannie’s Day One Certainty, and then asked how much of the firm’s total production went

through these two programs. Loan Advisor Suite and Day One Certainty received 6.9 and 6.6 ratings respectively in Questions 27 and 28. Slightly more than one-third of the respondent firms’ total production went through one or both of these two program initiatives. Being curious about whose technology, Fannie’s or Freddie’s, was helping most to reduce manufacturing and delivery costs, the hands down victor was Fannie, who received 15 acknowledgements compared to one for Freddie in Question 30. Softening the overwhelming response, 11 executives reported no difference between the twosome tech-wise. Related, we wondered whose solutions for low and moderate income borrowers was easiest to use. The response to Question 31 was FHA, followed closely by Fannie, and more distantly by Freddie. Another six of the 27 indicated no difference among the three agencies. Question 32 asked the executives if current LLPAs (Loan Level Price Adjustors) were too large and too broad. No uncertainty here, with six times more responding affirmatively than otherwise. Questions 33 through 36 focused on mission creep by the GSEs of late. Here 23 of 26 executives said they saw evidence of such creep by Fannie and Freddie in the past year or so. As to how serious a concern this “Expansionary Push” was viewed, it rated a 6.2 on the one through 10 scale. The next two queries wondered whether the executives favored the GSEs offering (pilot) lenderpaid MI (private mortgage insurance) and MSR financing. Nearly twice as many of those surveyed don’t favor Fannie and Freddie offering LPMI than do and four times as many do not favor GSE financing of MSRs. (Note: The responses to these two questions could be a bit deceiving since many of those favoring the overtures are participants in the pilots.) Question 37 wondered how well the executives felt they knew what to expect in the future with the UMBS, not the longstanding PC and MBS. On the 10-point scale, the response fetched a 5.6 average with a range of three to eight and a median of five. Question 38 asked about waivers and variances from the

GSEs of late. Nearly twice as many indicated that yes, the availability of waivers and variances had (substantially) increased. (Note: There’s much more to be said on this subject.) Questions 39 and 40 dealt with excessive requests for data from Fannie, Freddie and FHFA on the one hand and the BCFP (aka CFPB) on the other. Yes, excessive, excessive both by 2:1. Note: Those saying no were largely thinking about the workload, not the demand for data, and did not see the workload as excessive since it was all automated. Questions 41 through 44 solicited letter grades from four key agencies: Freddie Mac, Fannie Mae, Ginnie Mae, and FHFA. Freddie and Fannie both received B+ grades, and Ginnie and FHFA got B-. Freddie received two As, Fannie four As, FHFA three As, and Ginnie had one A. Questions 45 and 46 inquired about investments in technology, for how long, and the level of satisfaction with the pace of innovation in their firms’ LOS platforms. Executives reported that their firms have been making sizeable investments in technology for many years, seven on average. As for platform satisfaction, there was a 4.9 average on the 10-point scale and a median of five. Surprisingly, there were no 10s assigned. Question 47 wondered about priorities, specifically which of two were a higher priority inhouse. Turns out, more than four times as many executives favored reducing costs more than reducing cycle times. Staffing was the subject in Question 48, and nearly three times as many firms are reducing staff as not. Question 49 asked the executives what their firm’s total origination volume was through September 2018. The group average was $14.3 billion and the median was $6.1 billion. The range was huge, from a broker who originated $30 million through the year’s first nine months, to more than $100 billion in the same period by a SIFI bank. Question 50 sought to know the number of production channels each operated. The median was two, the average was 2.2, and there were 10 retail-only shops and four of the

MBA’s 2018 Annual Convention Survey: A Report of Findings attend any of the many sessions, I had several interesting meetings. One was with a Senior MBA Executive. We discussed risk and market structure. I had separate meetings with scholars from two different Washingtonbased think tanks. Risk and Postscript: What I learned at market conditions were key topics. I lunched with a couple the 2018 MBA Annual who had just invested capital in a Convention … a summary small but well-known, well Here’s what I learned from the managed CA-based discussions I had with the Independent Mortgage Banker. executives aside from survey findings. First, we are now in the My contact at the firm, the Executive Vice President of down part of the housing Capital Markets, made the origination cycle. Refinancing is only 20 percent +/- of aggregate introduction. Also met with two executives from Fair Isaac & Co. volume. Purchase volume will to discuss credit-related issues. most likely hold up in 2019, thanks to leverage, but seasonal One dinner was with an interesting three-some: The factors (for now), higher interest chairman and Chief Executive rates, supply constraints and Officer of a small North Carolinaaffordability issues loom large based bank that recently sold its obstacles despite favorable mortgage subsidiary; the Codemographics. Ironically, Director of the Center on Housing demand is strongest in the hot Markets and Finance; and the markets with their thin now retired former President of inventories of houses for sale. international operations for oneMoreover, most (about 58 time mortgage giant, GMAC. percent) of the demand is from first-time buyers. In general, they Last, I took a quick tour of the HUB, the area for vendors, offer the most risk: Small partied with MGIC staff and downpayments, student loan customers at their reception, and debt, high DTIs, low starting attended Sunday’s committee incomes, etc. The word I heard frequently to meeting. The Secondary and Capital describe the near-term Markets Committee agenda environment was “brutal.” Difficult, challenging were others. consisted of four presentations: about FHFA priorities; Lower than seasonal production has staff reductions galore. Firms implementation of the Single Security (SS); MISMO’s PLS are trying to get ahead of falling Valuation Project; and the future revenue. Margins are razor thin of the so-called “DTI patch.” (if they exist), thanks to keen FHFA’s representative mentioned competition across the industry. capital rules, the GSE scorecard, Margin pressure was said to the GSEs’ goals, and CRTs. The have worsened monthly since executives from Fannie and last June. Freddie provided an update on Down cycles mean risk is up. the SS. They discussed making Be careful … and trading the “UMBS,” which is Many of the executives who now in testing. The market was participate on the panel share said to be in transition mode with the Scorecard and Report with an infrastructure that’s “ready to others at their firms. Staff go.” The MISMO discussion meetings to discuss the topics covered what data points are and findings are common, as needed to evaluate a PLS for a there are many topics in the rating from the rating agencies. questionnaire worth discussing The QM Patch presentation was internally. The survey is a good forum for agreeing or disagreeing of limited value since the decision on whether to extend the Patch with the findings and discussing will reside with the next FHFA the whys or why nots. Director, or the Congress. Although I was unable to MBA 2018 Convention. My thanks to Fannie Mae and Fair Isaac for sponsoring this year’s survey. Without them there would be no queries, answers or findings on these issues and topics.

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

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twice as many executives responded that they regarded housing policy a failure. Note: I placed this question on the survey because I feel strongly that U.S. housing policy has not been successful, especially given the dollars spent to support the policy.) Questions 61 and 62 inquired about the FHFA and whether the executives favored a proposal and a recent decision it made. All but one of the 22 respondents to this question indicated they favored the proposed capital and liquidity rules for Fannie and Freddie. Meanwhile, nearly five times as many executives favored the FHFA’s decision to table the idea of a new supplemental credit scoring model as not favoring it. Question 63 asked about the LO compensation rules and whether the BCFP should revisit it. Yes, it should, responded eight times more executives than those opposed. Are market conditions ripening for a return to mortgage brokering and wholesale, asked Question 64. They appear to be, according to those surveyed. By nearly 3:1 the executives said yes, a return is likely due to shifting market conditions. Question 65 wondered if the respondents favored the OCC’s recent decision to allow fin-tech firms bank charters. By more than 3:1, the executives disfavored the idea, and the five who did say support the decision qualified it, adding if they have the capital and endure the regulations banks undergo. Question 66 sought to learn if the executives thought that appraisers and AMCs should be replaced by technology and AVMs. Not so fast to replace, said 16 of 27 of those surveyed. Are there many potential borrowers in the market who can’t get a mortgage (are being refused), but who should be served because they qualify, inquired Question 67. Not really said 18 executives, more than twice the number who felt many who qualify are being overlooked by a lack of access to credit. The final question, Question 68, was my political query. It was: Do you expect a “Blue Wave” to hit Congress from the November elections? By a narrow margin the noes prevailed 5:4. So there you have it, a quick overview of what I learned at the

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27 firms operate in all four production channels. Questions 51 through 55 dealt with housing, affordability, and whether the executives thought now was a good time to buy a house. Low inventories were cited as the biggest factor slowing production today, followed by (high) interest rates and affordability issues. High house prices are cited a serious concern among the executives, who scaled it a 7.1 of 10, with a range of three to 10. Geography and place of domicile largely explain the wide range of observations: Cleveland isn’t Seattle. As for house price expectations for 2018, almost twice as many executives expect house prices to exceed the rate of inflation next year. And is now an opportune time to buy a house? Indeed, it is say about five times more executives than the number thinking not, be they average consumers or first-time buyers. Do existing regulations add value to borrowers that exceed their cost to borrowers, asked Question 56. Not even a little bit if given a cost-benefit test said more than five times as many executives who saw value exceed the cost of that value. And maybe not too surprising given that the cost of a mortgage has risen from roughly $3,200 in 2008 to $8,200 in 2018, up $5,000 in a decade. Question 57 wanted to know if the executives felt the so-called “DTI patch” should be extended beyond its sunset in 2021. Twice as many of those surveyed favor an extension of the QM’s exemption from an otherwise 43 percent maximum DTI. While everyone agrees there’s no one size fits all DTI cap, Question 58 inquired as to what they felt should be the maximum DTI, exceptions aside (and yes, there are and should be many). The cited maximum, on average, was 45 percent. That was also the median in a range from 35 percent to 50 percent. Question 59 wondered if the executives regarded the Ginniecentric model–the Tozer-Bright model, as I described it–as a workable alternative to the GSEs. Twice as many executives saw it as an alternative than not. Question 60 asked: Do you consider U.S. housing policy a success the past several decades? Quite surprisingly,

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A Five Part System for Generating More Realtor Business By Brian Sacks

e have all heard the statement: “It’s all about who you know not what you know” right? Whether you think that is fair or that it does not really matter because it is truly a fact of life. You have to first begin by understanding that agents are people just like you and I. They should never be viewed as adversaries or people to be avoided, but rather, people who you want and need to get to know.

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Step# 1: Who? “Who?” is probably the most important question of all. Not every agent is the same and not every agent is a good fit for your services. Some “gurus” in our industry, many who have never originated themselves, provide scripts to use when speaking with or setting up meetings with agents. The problem is that the meeting should actually be a twoway interview with you asking if they should be working with you and them asking if you would be a good fit for their business. Here are some criteria: l Are they mostly a buyer’s agent or a seller’s agent? l Do they work with mostly move-up or first-time buyers? l What is their average transaction size? l Does their personality mesh with yours? l Does their expectations match yours? Step# 2: Who are they and what interests them? These days, it’s very easy to learn all about a person before you even meet them. You can look at

their profiles on Facebook and LinkedIn, or visit their Web sites to learn about them. Ask other agents and title companies what they know about a particular agent. Do as much research upfront before you even set up a meeting: l You should also take this one step further and try to learn about who they are currently working with as a mortgage lender? l What programs do you offer that they may not? l What are their vulnerabilities? l What services and/or tools are they able to offer their partners versus what you can offer? l What is their current lenders’ reputation in the business? Step# 3: Who can connect you? This is an often overlooked tactic that you should pay close attention to. There are numerous opportunities for you to be connected to a referral source or agent you have identified. Here are a few: l Do you reach out to listing agents on your deals and stay in touch with them? l Can a title rep or other professional introduce you? l Do you belong to any social or religious groups that the person you have identified belongs to as well? l Do you know any other agents who are friendly or work with this agent and can introduce you? l Can you meet them at a Board of Realtors event or committee? If you can get introduced to this person by someone who influences them, you are 100 percent more likely to have a good

meeting and outcome than a cold call with an overused script. Step# 4: Know how the conversation will go before you have it Practice the conversation in your mind a few times before you even make the first contact or meeting. What will you say? What will they say? Take out a sheet of paper and write down the following: l Every benefit and reason they should do business with you. Note … it cannot be because you have good rates and give good service because that is expected from every originator. l Every excuse they could provide and every objection they could raise to not do business with you or even have a meeting with you. Now play out that conversation in your mind. Listen to what they are saying and listen to your responses. Remember that you should be listening 80 percent of the time and speaking only 20 percent of the time. The problem we all have is the tendency to just spit out all of the reasons to use us before even knowing if the person even needs us. Or even if the reasons we are giving would be a reason for the agent to try us. You must remember that everyone is tuned into “WIIFM Radio,” which stands for “WHAT’S IN IT FOR ME Radio!” When you approach this as a conversation instead of a sales call, you will be way ahead of the game. This is just as much about how they can help you as it is about how you can help them. Isn’t that what a partnership is all about? So let them know you are all about helping them grow their

business so you can grow yours together. Please go back and re-read this entire paragraph. Don’t be the Loan Officer who just vomits benefits and what you can do and how great you are. This is about them not you! Let them talk and they will often tell you exactly what you need to know to create the relationship you want. What will you bring to this meeting? You should carefully prepare tools to bring. Provide tools that you can offer to help them grow their business. Bring information on you and your expertise. Prepare a list of programs you are an expert in or have programs that that may be proprietary that solve a problem buyers have like self-employed, credit-challenged buyers or grants and downpayment loans. But maybe, most importantly, you should prepare a list of all the testimonials you have received from previous buyers and agents. No one believes anything you say, but they will believe what others say about you. Step# 5: Have your follow up plan in place before you speak I cannot stress enough that no one ever gets married on the first date. I know that we would all like to call an agent, have them be eager to meet us, and then after the meeting, become their sole go-to lender. Now, please wake up from this dream because that is exactly what this is … a dream and not reality. Like every relationship, you must have multiple exposures and interactions before trust can be established. continued on page 69

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

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

Invest in the Next Generation Now or Risk Falling Behind Later hat will mortgage lending look like in the next 20 years? The next 10? If today’s trends are any indication, the art of selling loans and buying homes is going to radically change—again. Innovation is rampant: New technologies to make homebuying simpler and more accessible are leaping off the assembly line at lightning speed. Loan Originators are expected to be nimble and responsive to consumers who, more now than ever, expect their needs to be met and questions answered at any time from any place. And the demographics of homebuying continue to shift. Even though they’ve held off on homebuying longer than other generations, Millennials are poised to become a formidable force in the housing industry. Data from the National Association of Realtors (NAR) shows that Millennials, the largest generation in history, continue to lead the pack in homebuying—a position they’ve held for the last five years. Their tastes and preferences are shaping industries and changing the way the world digests media, educates children and interacts with financial services companies. Unfortunately, the mortgage industry has been slow to adapt to this change. Housing prices are still astronomical. Inventory continues to shrink. And for many, the mortgage process still feels cumbersome and stressful. Yet, more than 90 percent of Millennials still plan to buy a home someday, according to a 2017 study from major health insurance company, Anthem.

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If our industry doesn’t scramble to meet the demands and expectations of the up-and-coming Millennial homebuyer market, we risk missing out on a tremendous opportunity to reinvigorate mortgage lending. That said, it’s critical we refrain from viewing Millennials only from a consumer or sales vantage point. We must become their partners. Their help. A resource. That’s why, this fall, the National Association of Minority Mortgage Bankers of America (NAMMBA) launched Mission 2025, a Next Gen program that aims to educate more than 50,000 high school and college students across the country about careers in the mortgage industry. The program will also provide students with financial literacy skills and programming to help engender a generation of young people equipped to manage their finances. Employees of NAMMBA company partners will also be able to participate in the outreach personally. We understand that to reach Millennials, we need Millennials. But we also must engage members of Generation Z. As the youngest Millennials today prepare to graduate college and enter the workforce, members of Generation Z are continuing their education and beginning to formulate ideas of what their lives will be like after school. Educating these young people can have a major fiscal impact on our industry if we’re deliberate in reaching them. Although different, there are many similarities between Generation Z and Millennials—and understanding them could be the key to keeping the housing market thriving in the years to come. Here are three reasons why.

Educated professionals best help educated consumers Consumers today are more educated than ever. The eCommerce Foundation last year found that 88 percent of consumers research their purchases before they buy. In 2016, a survey of 250 retailers by Forbes Insights showed that most customers prefer to research a product online before making an instore purchase. And while an increasing share of would-be homebuyers use an online resource in their homebuying process—about 87 percent, of which 66 percent were Millennials, according to a 2016 Zillow report— studies have found that buyers still want to transact business with another human being face-to-face. They don’t just want Loan Officers. They want trusted advisers capable of answering their questions and reducing their anxiety. Hence the need for a new generation of Loan Officers who are adept and educated. Young adults today are best equipped to understand other Millennials’ homebuying pain points. Not only can members of Generation Z provide Millennials with the types of answers they need, but they can also devise innovative solutions to help customers overcome those obstacles. In an age when Millennials are 72 percent more likely to consult a friend during the homebuying process, according to Zillow, it’s important these consumers interact with people they trust and professionals who speak their language. Youth today understand technology It’s no secret that Millennials are

much more digitally-savvy than the generations before them. The high schoolers and college students NAMMBA hopes to reach grew up in the digital age—first with computers, cellphones and laptops and later with tablets, social media and apps that do a bit of everything. This generation lives and breathes mobile and tech. Take smartphone usage, for example. More than 92 percent of Millennials own one, compared with 85 percent of Generation Xers and 67 percent of Baby Boomers, according to an analysis from the Pew Research Center. Adds Pew: 97 percent of Millennials use the Internet; of those, 28 percent only use the Internet on their smartphones. Those habits are directly responsible for the advent and growth of mobile—a word that is now ubiquitous with retail, marketing and commerce. Now, think about members of Generation Z. Few have known life without the Internet or a laptop. They’re used to interacting with screens and their ability to understand new tech is unparalleled. Like Millennials, they flourish with smart technology. What does this tell us? If we want to do business with Millennials, we must meet them where they are. What better way than leveraging Generation Z— another cohort of people already familiar with the technology? This isn’t to say that older mortgage professionals can’t or don’t use contemporary technology well, but adoption of new tech is pervasive among younger generations. These socalled digital natives understand how the technology works and can

provide lending solutions that accommodate their peers. That’s how we get successful businesses like Blend and SoFi. We’re securing our future It’s an unpleasant thought but it’s inevitable: The Baby Boomer generation will die out. Eventually. Generation X, much smaller than Baby Boomers or Millennials by sheer number, will soon follow. We must turn our attention to the future. The buying power of the Millennial generation is immense. A report from global investment firm UBS casts Millennials as the “Global Guardians of Capital,” and estimates that by 2024, global Millennial wealth will swell to $24

trillion, about one-and-a-half times the size of the U.S. economy in 2015. Opportunity awaits. Many Millennial homebuyers have already started their careers. That’s why NAMMBA is focused on the high schoolers and undergraduates. Investing in their continued education may inspire many of them to consider mortgage lending as a viable career prospect, thereby injecting new life into an industry renowned for its archaic processes and antiquated systems. The mortgage industry needs Millennial think-power, and Millennials need to do business with people they can relate to, communicate with and trust.

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

a five part system

continued from page 66

Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for more than $1 billion. He has trained, consulted and coached tens of thousands of Loan Officers and company owners over the past 31 years on how to close more loans, make more money, and still have a life. Brian is the host of Top Originator Secrets which can be seen weekly on Mortgage News Network and on his blog. You can get more information and grab your free report on “How to Get Agents Chasing You” at TopOriginatorSecrets.com and learn more about the Top Originator Mastermind at TopOriginatorMastermind.com/MNN.

continued on page 84

Mid-term elections: Join MAA With the mid-term election cycle behind us, now is the perfect time for you to join the Mortgage Action Alliance (MAA). With the number of challenges the industry is facing, new representatives need to be informed about key issues and what they can do to help your business and the customers you serve. It is important that those in charge hear our industry’s voice! Signing up for MAA is easy. Go to MBA.org/JoinMAA to have instant access to MAA benefits and information. Download the app If you’re already an MAA member, download the MAA App (available in Google Play and the App Store) to stay up to date and have access at the touch of a button. Through the app, you can: l l l l l

Join MAA Complete a Call to Action Learn about MORPAC Read industry updates on key issues Look up and connect with your elected officials in US House and Senate

Your voice matters When Congress understands the needs of the industry, we are far more likely to be successful at stopping bad legislation in its tracks or pushing positive legislation proactively. Our jobs and livelihood depend on the existence of a strong real estate finance industry. Only with your help can we change the way Washington views what you do every day to support consumers and strengthen your communities by putting the dream of homeownership within reach. As always, thank you for your help and support! Together, we are able to amplify our voice and drive change for our industry in Washington, D.C. and across the nation.

Gene M. Lugat is Chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. Gene is Executive Vice President, National Industry and Political Relations for PrimeLending Inc.

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would succeed with just one more touch. Not sure if you have ever heard of the famous classic book Acres of Diamonds by Russell Conwell,, but if you haven’t, then go Google it because this classic will put everything in perspective for you. It’s so important that I have given it to all of my Top Originator Mastermind members (http://TopOriginatorMastermind. com/NMP) because it’s a lesson we all need to keep in mind, especially when adding new partners to our business. Now go ahead and write down these five steps. Go ahead and identify the agents you want to work with and go after them with a plan. Realize that just one meeting generally won’t be enough.

A Message From MAA Chairman Gene M. Lugat

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You must continue to provide value, often times, before you are ever rewarded with a new deal. The key is setting the proper expectations and consistent exposure. I do this with a monthly newsletter and also with tools that allow me to stay in front of them visually via one-on-one-videos. I also provide value via Webinars and seminars to these unconverted agent partners. But maybe most importantly is the fact that follow-ups and systems are planned in advance and are very strategic. These follow-ups are fun and creative, and are meant to keep me at the top of my mind with these people. The truth is that most of us give up way too fast and generally stop right when we

MBA’s Mortgage Action Alliance

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Diversity During a Challenging Mortgage Market By Debora Aydelotte

an organization for support and resources. However, affinity groups can actually perpetuate affinity bias and unintentionally drive wider gaps between groups of people. A more valuable approach is to increase diversity through a broad approach by having people of different groups interact, driving improved awareness and education.

Staying committed to diversity in a downturn In order for organizations to maintain a commitment to diversity during a time of cuts, it’s important for them to understand and anticipate where employment trends are headed, which is done through forecasting. If there is an open position and a company cannot find a candidate who meets its diversity goals, someone else could be hired to fill the position on an interim basis until the right continued on page 101

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How tough times can impact diversity Unfortunately, diversity efforts can take a hit when markets become challenging, as they are doing now. Low inventory and increasing prices have greatly affected affordability and, while some incomes are higher, in many markets they have failed to keep up with increased housing costs. Rising interest rates have deflated refi activity, and per-loan production and servicing costs are at or near all-time highs. Collectively, these factors are forcing lenders and third-party service providers to make cuts, often starting with jobs themselves. The recovery in mortgage employment we’ve seen over the past several years is now reversing. Mortgage layoffs are increasing, and employers are making cuts, reducing staff numbers or exiting the industry altogether in response to current market realities. Meanwhile, M&A activity is increasing, as many small- to mid-sized lenders are unable to manage costs. The current reductions are nothing like the massive exodus we saw in 2008. However, when markets decline, lenders need to make tough calls, and can simply retreat to old habits, making

decisions based on what worked in the past. It’s a natural reaction when, under pressure, most humans default to what they know. When making staffing decisions, mortgage industry leaders and managers typically fall back on their networks and the people with whom they have worked the longest. This is natural, and perhaps understandable, but at the same time, is problematic, because it can lead to affinity bias. We all have professional networks, and they tend to be relatively closed environments. This applies throughout our industry, including lending, title and servicing. If you’re a CEO, your network will tend to be people who are similar to you. They are more likely to share your background, gender or ethnicity. Intentionally or not, your staffing decisions will reflect the thinking of the people around you. Affinity bias tends to favor groups that are traditionally over-represented at all levels of our industry, in this case, White males over women and minorities. So what can be done to protect our industry’s hard-won diversity gains?

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higher numbers of women leaders—whether the CEO, other senior managers or those in the board room—experienced higher profits. The group analyzed data from nearly 22,000 firms in 91 countries, a majority of which had no women in positions of leadership, and found that companies with at least 30 percent women leaders had a 15 percent higher net revenue margin than those with no women leaders. Other studies have confirmed a direct relationship between diversity and better performance. Global consulting firm McKinsey found that, when organizations are ranked by racial and ethnic diversity among top managers and directors, the top quarter were 35 percent more likely to perform better than other organizations in their particular field. It’s worth remembering that diversity’s power isn’t just limited to ethnic background and gender, nor does it simply happen because everyone thinks it’s a great idea. Creating a diverse organization takes real work, and diversity initiatives are only successful when those at the highest levels of the organization are leading the effort. When leaders aren’t involved beyond ribbon-cutting events, diversity initiatives tend to produce The value of diversity very weak results. They become The value of diversity to our the sole responsibility of front-line society is great, and companies are wise to remember that. Beyond supervisors and employees, resulting in no significant change at our moral duty to create equal the higher levels of the opportunities in the workplace for organization. As a result, such everyone, the facts are clear: organizations fail to achieve Diverse organizations simply diversity, and therefore, cannot perform better. realize its benefits. One study conducted by the For example, many companies Peterson Institute for International promote affinity groups, in which Economics, a non-profit, nonwomen or people of different partisan research group, found backgrounds join together within evidence that organizations with he mortgage industry has made strong progress in its efforts to increase diversity among its ranks in recent years. While women and minorities are still underrepresented in the C-suite, the number of diversity and inclusion programs for lenders and mortgage professionals alike is increasing, and more organizations than ever have developed better, fairer training and recruitment programs and merit-based initiatives designed to give everybody an equal shot at growing professionally, regardless of race or gender. However, it’s worth noting that this progress was made during a time of recovery and relative market prosperity. Today, we have a slightly different story. A combination of economic and policy factors have led to stagnant volumes, and industry layoffs are again making headlines. As organizations decide where to make cuts, there is a very real risk that the industry’s diversity gains could freeze, or worse, head backwards. That doesn’t have to be the case, nor should we allow it to be.

Independent Mortgage Originators By Andy W. Harris, CRMS

Officers was that being a broker would prevent me from achieving the level of success I desired. The reasons for this varied, but the three that I seemed to hear most often were related to control, technology and flexibility. If you hear something often enough, you start to believe it. Not knowing any better, I ultimately made the choice to spend time working for a couple different lenders with the high hopes of reaching $100 million in production in the not-too-distant future. However in July 2018, I came back to the broker side with a much better understanding of the true versus the false, and a passionate belief that brokering is the only way to originate loans ethically in 2018, with few (if any) exceptions.

Scott Tennant Access Home Mortgage NMLS#: 1344192/NMLS#: 4566 This month, I’m interviewing Scott Tennant from Florida. He recently came back to the broker world several months ago and I wanted to get insight on that experience. Scott, tell me a little about yourself and your career. I am 30-years-old, I have been married to my beautiful wife, Jennifer for six years, and I have two amazing children. My oldest is Logan who recently turned four, and Emma will be two in December. My family and their happiness is the most important thing in my life. Aside from spending as much time as I can with my family, I love to fish, golf and help my clients finance their dream homes. I first worked in the mortgage business part-time when I was about 18-years-old. My mother and father had opened a small company that was offering exclusively reverse mortgages as a broker, and I was in charge of stuffing envelopes that were being sent out to prospective clients. I started working for the company full-time in 2012 and learned the reverse mortgage business inside and out, primarily working in a processing role. I knew I wanted to originate more than just HECMs, and the purchase market was exactly what I was looking for. So I started reading guidelines, talking to AEs, and learned as much as I could, as fast as I could. One of the things I was told over and over again by other Loan

Coming back to the broker side, what else motivated you and any additional insight? To me, it became a question of ethics. How many times have you been told, “I don’t sell rates, I sell service ...” When I left the broker world to work for a lender, I was a first-year Loan Officer coming from a role where I had very little experience completing a 1003, let alone managing a growing pipeline without an experienced processor to take over once I had an application. While this was a unique perspective, I think it sheds some light on why I was so blind to the benefits of being a broker versus a lender, and also why I was so eager to have the support I was promised. In hindsight, the right move would have been to join an established broker with experience in the purchase market so I could have the guidance I needed while offering the best possible products and pricing for my clients. Unfortunately, I was told again and again that originating will always be a struggle as a broker, and the only logical solution was to join the other side. So I did just that. When I started working for the first branch, one of the first lessons I was taught is that our rates were higher than I was accustomed to because we offered superior products and service. I was told that a broker couldn’t close loans consistently on time due to insufficiencies in the process, a lack of control over underwriting, and substandard technology. If this was true, it was the perfect example of how “Selling Service” was something I could get behind. From an ethical perspective, if I am “Selling Service” with a six percent rate, I am okay with that, provided the service is superior to the company down the street that is offering a five percent rate. However, it didn’t take long for me to realize that the frustrations I had were largely the result of my lack of experience, and not a problem with the company I worked for. So I worked and every day I learned something new through an experience on a particular file … sometimes a good experience, sometimes bad. Thoroughly and accurately completing a 1003 and reviewing supporting docs early on while taking a proactive approach to the loan process made it possible to close on time, set reasonable expectations, and manage a pipeline that had grown to a respectable five or so units per month. I was confident that my knowledge and work ethic made me the right choice for my clients. Towards the first half of 2018, I found myself comparing rates with a broker in my market, and I was shocked at the difference when comparing apples to apples.

Not longon after the this discovery heard street and after some other events and conversations I would prefer to keep private, I was at a crossroads where I could open another branch … or go back to brokering. The three lies about control, technology and flexibility almost kept me away, but I ultimately decided to go back to brokering, and it was the best decision I could have made.

offering same-day underwriting and tech that is better than anything I’ve seen on the retail side, any competent Loan Officer can pull off an eight- or nine-day closing. Just the other day, I submitted a file to UWM at 3:15 p.m. and had the underwriter’s approval back before 5:00 p.m. ... that’s pretty quick.

trying to learn everything on my own. My family’s company was the best in the business on the HECM side, but we were flying blind when it came to traditional purchase mortgages. It made us stronger as Originators and as a company today, but in hindsight, I may have done things differently. For an experienced LO, it’s a no brainer. Look past what you’ve heard, and investigate things for yourself. Join some broker groups on Facebook and ask questions. Mortgage Brokers love to talk about just how great it is to be a Mortgage Broker!

Anything you would choose to share with Retail Loan Officers considering the change to becoming an Independent Mortgage Broker? In addition, is there anything you wish to share with those that were Mortgage Brokers many years ago who are now Mortgage Are you an Independent Bankers? Mortgage Broker? Do you have I think new LOs owe it to something you’d like to share? themselves to join a broker with Reach out to me at experience who can guide them AHarris@VantageMortgageGrou I know the myth as you the first year. I went through a lot p.com for future article mentioned of losing control as a of unnecessary pain and stress considerations. Mortgage Broker is finally being exposed to the market and quite the opposite. What are your experiences on controlling Andy W. Harris, CRMS is President and Owner of Lake the process? Oswego, Ore.-based Vantage Mortgage Group Inc. and This is more than a myth, it’s an Past President of the Oregon Association of Mortgage outright lie. Control is an illusion Professionals. He may be reached by phone at (877) 496when working with one lender as 0431, e-mail AHarris@VantageMortgageGroup.com or a retail LO. You only feel in visit VantageMortgageGroup.com. control when things are going the way you want them to. True control is a closing manager knowing you can pull your pipeline from them if they don’t hustle to get docs out in time for your closing. As a retail LO, a disagreement or bad relationship with someone in that role can turn your world upside down.

n National Mortgage Professional Magazine n NOVEMBER 2018

What would you say are your best forms of marketing today to generate new business? My biggest source or business has been Real Estate Agents. I made an effort when I first started originating to connect with a list of them that I wanted to work with. Some didn’t give me the time of day, some sent me a loan or two and we didn’t work well together for one reason or another, and a handful send me every client they have who willing to talk with me. I maintain these relationships by making things happen that others won’t. The vast majority of my closings are standard 30-day contracts with 700-plus FICO scores, but the agents in work with know that they can call me when someone else drops the ball and we have a contract with nine days left before closing. When these situations arise, I jump at the opportunity, and we can usually pull it off. With companies like Cardinal Financial and United Wholesale Mortgage (UWM)

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What would you say so far are the biggest differences you’ve experienced coming from the retail side since you were a broker before? Coming back to the broker side has empowered me and made me a better originator. Ironically, my favorite part about brokering is the control. As a lender, if I end up in a disagreement with an underwriter, management, closer, funder or anyone else in the company, my options are to either deal with it, or move to a new company, and deal with the transition struggles that are inevitable when doing so. As a broker, I can simply move the loan and/or future loans to another lender going forward. I have recently run into one lender that has shown a lack of urgency when faced with scenarios that warrant a bit of extra effort. This would be a serious concern if I was working for their retail division. As a broker, the solution is to send it to one of the other companies that will do whatever they possibly can to earn our business. Then, of course, we have the obvious benefits such as wholesale pricing (which is low enough that retail LOs often don’t believe it is real when we compare), product selection (access to multiple lenders gives us access to virtually every product on the market, with the exception of a handful of DPA programs), and perhaps the most important, the ability to react quickly to changes in the marketplace ... there will never be a day where I get the call, meeting, e-mail or locked door that so many LOs have had in the past when their company closes its doors. How would you compare pricing when compared to the Mortgage Banker world? The pricing we have is incredible. I often beat competitor quotes by half a percent or more (in rate), with $0 borrower paid lender fees. Don’t take my word for it, call your local Mortgage Brokers and ask them to run a few scenarios for you!

What are you seeing in your local market on trends, inventory and consumer/Realtor mortgage education? Everyone is talking about rates, and the impact rising rates will have on home values and affordability, but more so, I hear a lot of chatter about the future of the companies and LOs whose main focus was the low-hanging fruit in the refi market over the last several years. We are seeing more competition in the purchase market as the refis have gone away, with almost all of my referral partners seeing an increase in solicitations from other lenders. This is a win for the consumer, but it is making waves. The days of closing on time and sending a thank you card to stay relevant are likely behind us.

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Working With Veterans Means Going Above and Beyond for Clients Provide best-in-class customer care for servicemembers By Ray Brousseau

uying a home is an exciting but stressful time. That stress is often compounded for members of the military and their families, as they have to deal with sudden deployments or changes in station. In 2016, there were more than 1.3 million activeduty military personnel1 and roughly 18.5 million veterans.2 These men and women provide an extraordinary service for our country, and they deserve the highest level of service in return—especially while they navigate the complicated procedures of obtaining and securing a mortgage. As part of their service, active members, veterans, and eligible surviving spouses can apply for home mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA). These lending programs can help service members and veterans get more favorable lending terms so they can purchase or refinance a home. Mortgage professionals working with the military need to know more than just VA guidelines to truly serve their clients. You should be aware of the unique circumstances under which service members work and the day-to-day realities of their lives in the service.

Know your clients Understanding your clients’ financial situation, what kind of home they want to purchase, or what they want to accomplish with a refinance represents just some of the information that an experienced mortgage originator will want to discover. You should also be familiar with military terminology. You may hear acronyms like “BAH” or “COLA,” along with terms like “PCS” or “COE.” Below are some common terms to know: l BAH: The Basic Allowance for Housing is given to servicemembers when government housing is not provided.3 The amount varies according to rank, dependency status, and location of duty station. The amount is calculated based on market rental rates for the zip code of the duty station. This is important, as it may not reflect the housing market where the service member actually lives (or wants to live). The Department of Defense offers a BAH calculator at: https://www.defensetravel.dod.mil/site/bahCalc.cfm. l CONUS COLA: This term refers to the Cost of Living Allowance (COLA) in the contiguous U.S.4 This is supplemental, taxable income provided to servicemembers who live in high-cost locations in the U.S. Housing costs are not taken into account here, as that is considered part of the BAH, but the duty station zip code is the basis of any COLA determinations. l PCS: The Permanent Change of Station reflects a service member’s official change of duty assignment to another duty location or military base. When a servicemember receives new PCS orders, they are required to move to that new location, usually within a 30-day window. This can be stressful, as it often means a tightened timeline for servicemembers who want to purchase a home at the new duty station. continued on page 76

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l MPR: Military Personnel Records may come up in a discussion of eligibility for veterans or surviving spouses. l COE: The Certificate of Eligibility is required for VA home loans, and certifies to the lender that the applicant is eligible for a VA-backed loan.5 Applications for a COE can be made directly to the VA, but many lenders seasoned in VA loans will have access to a portal to get an online COE quickly.

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more regulated and with less job-hopping. The short window of PCS orders can mean that current homeowners have a 30-day timeframe to try to sell or rent their home, find a home at the new location, and potentially make another purchase. Working with mortgage professionals and lenders who know about and understand this quick turnaround is critical. VA loan guidelines Active-duty servicemembers and veterans may be eligible for a variety of mortgage products, but often VA-guaranteed loan programs offer the best terms. The VA guarantees both purchase and refinance loans (including cash-out refinances). VA loans have many attractive features, including a zero downpayment loan with no mortgage insurance (unlike other government-backed loan programs). If the purchase price

Two major factors can deter servicemembers from buying a home: Pay/promotion and PCS moves. In terms of pay and promotion, servicemembers are both alike and different from their civilian counterparts: They have specific jobs and are trained in a particular skill set. Like many professionals, they receive their pay based on rank and time in service, but it is bit

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of the home is more than the reasonable value of the property, however, a downpayment may be required.6 In addition, some lenders will require a downpayment when the VA does not, so you should be aware of each lenderâ&#x20AC;&#x2122;s guidelines. There is a one-time VA funding fee that can be included in the loan, but this is waived for veterans receiving VA disability compensation. The VA also limits certain closing costs to be paid by the veteran or service member. These loans can also be helpful because there is no minimum credit score required. Instead, the VA requires lenders to consider the entirety of the applicantâ&#x20AC;&#x2122;s financial profile to make a responsible lending decision. There is no maximum debt ratio, but if the total debt ratio exceeds 41 percent, the lender must provide compensating factors to the VA.7 The VA does not set a maximum loan amount, but for 2018 it does limit its guaranty to

$453,100 without a downpayment in most of the U.S., with exceptions made for certain high-cost areas.8 Lenders have different limits for the VA loans they originate, so be sure to research lending partnersâ&#x20AC;&#x2122; requirements thoroughly to find the best product for your clients. The homebuying experience is both exciting and confusing, but it can be particularly difficult for men and women serving in the military. By making the entire homebuying experience easy to understand, completely transparent, and informative, you can help ease the stress of this process and show your clients the kind of personal, dedicated attention that those who are serving or have served our country deserve. Mortgage Brokers and Mortgage Originators should stay informed about VA loans and work with lenders that fully understand the intricacies of these types of loans.

Footnotes 1â&#x20AC;&#x201D;https://data.worldbank.org/indicator/MS.MIL.TOTL.P1 2â&#x20AC;&#x201D;https://www.census.gov/newsroom/facts-for-features/2017/veterans-day.html 3â&#x20AC;&#x201D;https://www.defensetravel.dod.mil/Docs/perdiem/BAH-Primer.pdf 4â&#x20AC;&#x201D;https://www.defensetravel.dod.mil/site/conus.cfm 5â&#x20AC;&#x201D;https://benefits.va.gov/homeloans/purchaseco_certificate.asp 6â&#x20AC;&#x201D;https://www.benefits.va.gov/homeloans/purchasecashout.asp 7â&#x20AC;&#x201D;https://www.benefits.va.gov/BENEFITS/factsheets/homeloans/VA_Guaranteed_ Home_Loans.pdf 8â&#x20AC;&#x201D;https://www.benefits.va.gov/homeloans/purchaseco_loan_limits.asp

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Basic Training for VA Lending he U.S. Department of Veterans Affairs (VA) reports that, so far in 2018, the VA has guaranteed more than 610,000 loans representing a total loan amount in excess of $161 billion. The VA’s mission is to help veterans and their families by providing a home loan guaranty benefit and other housing-related programs to help buy, build, repair, retain or adapt a home for personal occupancy. Even so, many active-duty, reserve, or separated military servicemembers do not understand, or are simply unfamiliar with, how their benefits can help them with homeownership. There are some who have used their benefits in the past and know what a lender will ask, but many have never utilized their benefits and have no understanding of the financial assistance available to them. As a specialty lender, all of us at American Financial Resources (AFR) consider it a privilege to educate and inform veterans of their rights as they explore home ownership, and serve them as they have served our country. The ability of a lender to fully explain how a veterans’ benefits affect their transaction, and timeliness of their closing, starts with the interview.

By Kenneth Capling

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Asking the right questions When taking an application with a veteran, the interview can either make or break the experience. Asking the right questions, depending on the status and needs of the veteran, is paramount. In many cases, a veteran is a first-time homebuyer and has never used their benefits. Or, has utilized their benefits, but are not aware how subsequent usage of their benefits will affect future eligibility. That’s why it is imperative to get to know your borrower, and understand what they are trying to accomplish, first. Active-duty servicemembers, in most cases, have different needs then those who are separated from active duty and no longer serving. An active-duty servicemember is typically subject to receive new orders every three years. Therefore, the property they are purchasing today may not be where they plan to reside

“When taking an application with a veteran, the interview can either make or break the experience. Asking the right questions, depending on the status and needs of the veteran, is paramount.”

after separation, or they may be receiving orders to another duty station soon. The transient nature of their current military status should be taken into consideration when assisting an active duty servicemember, to help place them into the right mortgage product, if they are searching for a home. Proximity to extended family and schools, or other specific needs of a spouse or children, and the remaining duration of their service should also be considered. There are three basic transactions types: A purchase, cash-out refinance or IRRRL (Interest Rate Reduction Refinance Loan). Depending on their particular situation, give the veteran the tools to succeed, and inform them they can read more about their benefits on eBenefits. Eligibility requirements To be eligible for a VA loan, veterans, active-duty servicemembers, National Guard members and reservists must meet basic service requirements. Spouses of a military member who died while on active duty, or as a

result of a service-connected disability, may also be eligible. It’s ultimately up to the VA to determine eligibility for the home loan program, but prospective borrowers can get a good idea by looking at the VA’s basic eligibility guidelines. The COE (Certificate of Eligibility) will be based on four questions that should be asked during the interview. Have they served 90 consecutive days of active service during wartime or served 181 days of active service during peacetime; or have more than six years of service in the National Guard or Reserves; or is the borrower a spouse of a servicemember who as died in the line of duty or as a result of service-related disability? The lender should obtain the COE through WebLGY (Veterans Information Portal) and inform the veteran of documentation that may be required. Veterans, current or former National Guard or reserve members who have been activated for federal active service must have evidence of a DD Form 214, showing the character of service and the

narrative reason for separation. Active-duty servicemembers or current National Guard or reserve members, are required to present a current statement of service, signed by (or by the direction of): The adjutant, personnel office or commander on the unit or higher headquarters. Discharged members of the National Guard who have never been activated for Federal active service need an NGB Form 22, Report of Separation and Record of Service, for each period of National Guard service, and NGB Form 23, Retirement Points Accounting, and proof of the character of service. Discharged members of the Selected Reserve who have never been activated for federal active service, need a copy of the latest annual retirement points statement and evidence of honorable service. A surviving spouse in receipt of DIC (Dependency & Indemnity Compensation) benefits, will need a VA form 26-1817 and veteran’s DD214 (if available), and should include the surviving spouse’s social security number. Entitlement explained The COE will dictate the entitlement of the veteran, or the amount available for use on a loan. The amount of available basic entitlement is $36,000. This is the amount of money the VA guarantees to the lender if the borrower defaults on the VA mortgage loan, but is not indicative of the loan amount, which varies greatly. This may be reduced if the veteran has used entitlement before which has not been restored. The amount of the basic entitlement will be displayed near the center of the COE. It will also provide critical information about the veteran borrower and their eligibility such as: Funding Fee status (Exempt, Not Exempt or Contact Regional Loan Center), conditions on the COE, did they have a prior VA transaction, and are they active-duty status or reservist. Regardless of the new Funding Fee status shown on the COE, the lender must be sure to read any and all statements appearing in the conditions field. In cases where the veteran has previously used entitlement and wishes to purchase another home with a VA loan, restoration of entitlement is required. Either the property purchased with

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fees may be paid by the purchaser or the seller, or shared between them. The seller can pay for closing costs, but the VA rule stipulates that a sellerâ&#x20AC;&#x2122;s â&#x20AC;&#x153;concessionâ&#x20AC;? canâ&#x20AC;&#x2122;t exceed four percent of the loan, and only some types of costs fall under the four percent rule. Examples include the payment of pre-paid closing costs, VA funding fee, payoff of credit balances or judgment for the veteran, or funds for temporary â&#x20AC;&#x153;buydowns.â&#x20AC;? Payment of discount points is not subject to the four percent limit. Also, veterans are not allowed to pay for the termite report, unless the loan is a refinance. That fee is usually paid by the seller. No commissions, brokerage fees, or â&#x20AC;&#x153;buyer brokerâ&#x20AC;? fees may be charged to the veteran buyer either.

the prior VA loan has been sold and the loan paid in full, or a qualified veteran-transferee (buyer) agrees to assume the VA loan and substitute his or her entitlement for the same amount of entitlement originally used by the veteran seller. The entitlement may also be restored one time only if the veteran has repaid the prior VA loan in full, but has not disposed of the property purchased with the prior VA loan. Loan limits and concessions Lenders must also be cognizant of the 100 percent financing quote. A VA loan has a base that cannot exceed 100 percent of the LTV/CLTV. The total loan amount (base plus VA Funding fee) cannot exceed county loan limits. Where does that leave room for the other loan costs? Lenders need to understand the general rules. The lenderâ&#x20AC;&#x201C;not the VAâ&#x20AC;&#x201C;sets the interest rate, discount points and closing costs. So, these may vary from lender to lender. Closing costs such as the VA appraisal, credit report, state and local taxes and recording

income ratio (DTI). The VA requires a signed statement from the veteran listing out dependents and the amount paid monthly toward such expenses. On the other hand, residual income is another factor considered and is sometimes confused with DTI. The U.S. Department of Veterans Affairs wants to make certain that the veteran has enough money left over to take care of their day-today expenses. Understanding the benefits of VA loans and the specific needs of your veteran borrower are equally vital. Asking questions to gain an understanding of where they are in their career, their goals following

Other considerations The VA also requires lenders to document child care expenses and residual income. These are key factors that can affect qualifying the veteran. Child care expenses must be documented and have a direct correlation to the debt-to-

their service, and their unique lifestyle and priorities helps us, as lenders, provide the professional guidance needed for each and every veteran. Ensuring the best product is chosen for their particular financial situation, even if it is not a VA loan, can be difficult. However, if everything learned from a thorough discussion during the interview process is considered, you will succeed. Just remember, not all veterans are the same, or in the same place in their military careers when financing a home. But helping veterans â&#x20AC;&#x2DC;come homeâ&#x20AC;&#x2122; is always a source of pride, and a privilege of our profession.

Kenneth Capling is Corporate Fulfillment Support at American Financial Resources (AFR). Based in St. Johnâ&#x20AC;&#x2122;s, Fla., Kenneth assists with the professional development of AFR clients nationwide, while collaborating on training updates as new legislation and loan programs affect the industry. AFR is one of the leading FHA 203(k) lenders for sponsored originations in the country, and an innovator in the construction and renovation lending area. AFR utilizes the latest technology and delivers educational resources to Mortgage Brokers, Loan Originators and their customers. For more information, visit AFRCorp.com or email Kenneth.Capling@AFRCorp.com. 79

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Bijan Farassat (917) 731- 4 870 bfarassat@ridge ewoodbank.com NMLS ID#646654 4

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How Mortgage Professionals Can Support the Military By Rear Admiral Tom Lynch, USN (Ret.)

s our country celebrates Veteran’s Day, I find myself reflecting on those who have served or lost their lives in service to our country. As a retired military veteran with a 31-year career in the U.S. Navy, I know firsthand what a difference it makes when businesses or individuals show their support and appreciation for veterans and active military personnel. In fact, my experience in the Navy, as well as my firm belief in the American dream of homeownership, is what drew me to the mortgage industry. I wanted to do something important to give back to my fellow veterans and active military families. In particular, I wanted to work for a mortgage company that specialized in VA loans. I know how important homeownership is to our military community. Ensuring that retired and active service members are able to take advantage of the VA benefits they have earned is one of the most fundamental and admirable ways of giving back. In my view, mortgage professionals who take the time to understand and become experts in VA loans are among the military community’s greatest financial allies. Through my work, I meet many people who want to show a greater appreciation to the military community. However, they don’t always know where to begin. Fortunately, I serve on the Board of Advisors for one of the nation’s largest VA mortgage lenders, a lender that has been involved in a multitude of activities that support and honor our military. Through these experiences, I’ve learned there is much more that you can do for military families than you probably think. Below are just a few.

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Make a donation As simple as it sounds, there are many organizations that support our military that are always in need of funding. Some of these respected organizations include the Veterans Crisis Line, Veterans Helping Veterans Now, Fisher House Foundation, Armed Forces Family Survivors Fund and Homes for Our Troops. I encourage you to look into them to see which ones strike a personal chord with you, and then pledge to make one or more

contributions, either on your own or every time you close a loan or a deal. Try getting your colleagues involved by spearheading a campaign to collect donations at your branch or company. Fund education for military children My company sponsors a Gold Star Scholarship program, which recognizes the commitment and sacrifice of our veterans and military families by giving out scholarship money to young people who want to attend select military high schools. The foundation provides four-year scholarships to the children of fallen and severely wounded military veterans, as well as those whose families have endured multiple, extended deployments, to attend JROTC military high schools across the nation. In the past 30 months, we’ve awarded 48 scholarships ranging from $20,000 to nearly $100,000 per cadet. Support a military family Everyone is familiar with Veteran’s Day, but did you know that November is Military Family Appreciation Month? Many families of service members must manage the home while a spouse or parent is gone for training or deployment, often for a long stretch of time. Consider having a pizza delivered to a military family, or give them a gift card to a local restaurant. Another great option is Operation Kid Comfort, which helps cheer up the children of deployed service members with a free, custom made quilt or pillow with mom or dad’s photo on it. Other ideas to help military families may be found here. Volunteer at a nursing home or a veterans hospital Even a short visit with veterans lets them know that they haven’t been forgotten, and local VA hospitals are always looking for volunteers. For example, Walter Reed National Military Medical Center in Bethesda, Maryland has more than 500 volunteers who work in various ways to help wounded soldiers and veterans. During the summer, more than 50 youth volunteers join them. Why not make volunteering a family affair? Honor the deceased Placing flags on the graves of

veterans who lost their lives serving our country is one way to express appreciation. Every year, company executives and employees at my organization support Wreaths Across America–a program in which wreaths are placed on graves at Arlington Cemetery and other veteran cemeteries across the country. We also coordinate with the National Park Service in Washington, D.C. to help clean veteran memorials around the nation’s capital including the Vietnam Veterans Memorial, the African American Civil War Memorial, and others. Help homeless veterans Far too many veterans wind up homeless. According to HUD, the number of homeless veterans rose last year for the first time in seven years to more than 40,000. The U.S. Department of Veterans Affairs (VA) has several initiatives to combat the growing problem of homeless veterans, and there are many ways you can help. For the past several years, our employees have volunteered hundreds of hours in support of veteran-centric organizations, including feeding homeless veterans at The Baltimore Station. Support and attend military and veteran events There are many events for the military where you can show your support, as well as awards celebrations to attend. A good example is the “The Lone Sailor Award,” which is given to sea service veterans who have excelled with distinction in their respective careers during or after their service. Award recipients show that they have distinguished themselves by drawing upon their military experience to become successful in their subsequent careers and lives. It’s an event employees of my organization like to attend. Send a care package or letter There are several organizations you or your company can work with to reach out to veterans and the active

military. Operation Write Home and Operation Gratitude are two good examples. Operation Write Home supports the armed forces by sending blank, handmade greeting cards to soldiers for them to use to write home. Operation Gratitude sends packages to current military personnel as well as veterans, wounded servicepersons and their caregivers. You can help out filling a care package by writing a letter, knitting a scarf, organizing a collection drive or engaging in many other ways to show gratitude to the military. To date, Operation Gratitude has sent more than two million individually addressed care packages to the military. Start a corporate volunteer program Your company can give back to military families through the VA, and the VA will even help you get started by tailoring a program for your company and can design volunteer opportunities for both individuals and groups. It’s a great way to help your employees get more involved with veterans and to even learn new skills. To find out more, visit their website. It’s important to explain that I chose to serve on the Board of NewDay USA not only because the company focuses solely on VA loans, but because it does so much more to support active duty military personnel, veterans and their families. That commitment has created a tight-knit, enthusiastic corporate culture filled with employees who are eager to help active military members and veterans. And we’re not just paying lip service: NewDay had 1,406 hours of volunteer work in 2017 and we’re on pace to exceed that number in 2018. By deepening your commitment to our men and women in the service through one or more of the above ways, you’ll not only be helping veterans and their families. It will give you a better understanding of the unique situations and challenges veterans face. Even better, it will make your job much more fulfilling.

Rear Admiral Tom Lynch, USN (Ret.) is Executive Chairman of NewDay USA. He also serves as co-chair of the NewDay USA Foundation. The Admiral retired from the U.S. Navy in 1995, following which he held senior executive leadership positions at private and public companies, and he currently serves on the Board of Directors for several non-profits.

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VA Community Involvement: Serving as a Resource Beyond the Close of the Loan By Carol Pope ssisting military members with their home loan needs is a privilege and an honor many in the mortgage industry have experienced. Most Loan Officers will tell you there is a great deficit when it comes to the number of those who take advantage of this well-deserved benefit. This benefit, being one of the most significant benefits of serving in the military, is the VA home loan. What can an industry holding the keys to one of the greatest perks bestowed upon our servicemen and woman do to become more involved with the military community and increase awareness of this benefit to more servicemembers? Living in Puyallup, Wash., home to Joint Base Lewis-McChord (JBLM), attending West Point as a cadet, and coming from a military family (father is a veteran, and members of my family have served in every branch of the military) has baked a deep passion inside of me for helping military families with their home loan needs. One of the highest honors of my life is to serve and give back to those who have given so much to our country and freedom. Below are three key areas of focus for those who want to get involved with their Military communities.

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“What can an industry holding the keys to one of the greatest perks bestowed upon our servicemen and woman do to become more involved with the military community and increase awareness of this benefit to more servicemembers?”

Alternatively, another easy way to transition the conversation to the topic of homeownership is to ask them some authentic, genuine questions one would usually ask when meeting someone new for the first time. Where are you from? How long will you be at the base? Volunteering Where are you currently living, and Volunteering may come off as a how do you like it? Is your living no-brainer to many, but you’d be situation working for you? What do shocked at how many mortgage you think of [insert city]? Could you professionals don’t do it. While see yourself settling down here? this activity doesn’t correlate I talk a lot about the city of directly to production, it gets your Puyallup and why it is such a great name and face in front of the very city to call home. Often, I find many people who need your help. As a servicemembers haven’t thought of volunteer, you are provided a owning a home while on an platform to give back, to share assignment because they will be your personality, and when the leaving after their assignment. I like proper environment and context to remind them, they can always do arise, you can take the rent out their home if they do move conversation wherever you like. and the home can become a viable It is extremely common to secondary source of income by discuss one’s profession when meeting new people, regardless of renting it out to other incoming servicemembers. This approach the environment or context, and tugs on their sense of service to this is the opportunity to mention their fellow servicemembers, which your passion and gratitude for I think benefits the community what our servicemembers do and how you do your best to help them overall. The fact that a veteran can have more than one VA home loan achieve homeownership in return.

at a time is a little-known fact. Volunteer opportunities will vary from base to base, city to city, but to give you an idea of what’s available in Puyallup I have outlined a few volunteering opportunities below. The best place to start when considering volunteering your time to help servicemembers is to engage with the Public Affairs Office, or if your local base has a Morale Welfare and Recreation office, inquire with them. Outside of the base in Puyallup, there are many organizations that assist military families with everyday life tasks. For instance, driving family members to doctor appointments, providing backpacks and other necessary school supplies to children of servicemembers, as well as bringing awareness to the many challenges that face our servicemembers both in and out of military life. In addition to the constant, ongoing volunteer opportunities many seasonal military events need volunteers as well. Puyallup’s

Association of the United States Army (ASUA) Chapter (an organization dedicated to advocacy on Capitol Hill, benefits and services, education, and networking) hosts multiple events every year including a Salute Your Troops event in July, a Turkey Drop for Thanksgiving, and a toy drive during December. Lastly, Puyallup has a chapter for the Veterans Associations of Real Estate Professionals (VAREP). This organization provides educational offerings for servicemembers and their families on their VA Home Loan benefits. VAREP is a non-profit organization that all real estate members can join. Through partnerships with local military installations, VAREP works to provide education and support for our veterans who are looking for housing whether it is to rent or purchase a home. Overall, volunteering in support of our servicemembers is an easy way to meet servicemembers, understand their unique needs, and be able to empathize with their situation. In my opinion, this is the ideal foundation of working with our servicemembers. Sponsorship/advertising In addition to volunteering, mortgage professionals can sponsor or advertise with their local base. At JBLM, we have a Morale Welfare and Recreation office that aims to enhance the quality of life, readiness and well-being of servicemembers, their families, civilian employees, and military retirees. This office works with outside organizations to help best position their brand offering to the many people who call JBLM home. Beyond volunteering with the organizations many need monetary support as well. Support of this kind often comes in the form of sponsorship of the organization, various events, workshops, and fairs they may host throughout the year. Advertising is another principal revenue source for local and national military organizations. JBLM’s Web site offers space on the home page for professionals looking to market their services to various audiences who visit the site. While I think advertising and sponsorship is a vital component of any veteran marketing, I do believe

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face-time through volunteering is the critical component of any successful veteran business focus. Understanding the nuances of military life is essential if you are to serve this unique market.

proposition with education and selfless service to their needs. They will connect with you because they spend their lives selflessly serving the needs of our

freedom. As you can see, it is a cycle of giving, and once you figure out your role in it, you are sure to become a vital resource to our military communities.

Carol Pope is a producing Territory Manager for Land Home Financial Services, covering all of Washington state. Born in Maine, Carol was nominated to attend the U.S. Military Academy at West Point, entering the institution the very year it graduated its first female. With more than 25 years of mortgage experience, Carol dedicates most of her time helping veterans achieve the sacred dream of homeownership.

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Teamwork Living in a military town does have its benefits when you aim to serve our military servicemembers. Being passionate about our military and our industry provides an opportunity to find like-minded partners who work within the home purchase ecosystem. Working with retired servicemembers who sell real estate is an undeniable thrill for me. They understand military servicemembers better than most, and they know the nuances of a real estate transaction. Ex-military Realtors do provide an excellent opportunity to understand the military servicemember’s homeownership goals and apprehensions. They also understand how to talk to servicemembers, which offers a beautiful bridge that is critical in ensuring you deliver upon expectations. In addition to volunteering with organizations like the associations of the U.S. Army, the U.S. Air Force and the U.S. Navy, these organizations also partner directly with active military battalions and commanders who are constantly looking for opportunities to get their personnel in front civilian services that can help their members with every day needs, such as real estate services. Through the AUSA, I partner with JBLM to offer free training and resources to educate servicemembers on their home loan benefits provided through the VA. I try to host as many on-base military “Lunch and Learns” as possible. I find this is a perfect supplement to my volunteering activities because the servicemembers are now seeing me in a professional light (this is how I can help you) as opposed to my volunteer and sponsorship light (this is how I show my support for what you do). When the military servicemembers bridge those two sentiments, my brand value proposition has made that metaphorical landing on their Air Craft Carrier. When serving our military communities, it is vital to remember you aren’t selling to them; you are helping them achieve a dream. A dream that is rooted in the very freedom they risk their lives to protect. Serving our military communities is an honor and should

be approached with the humble posture it deserves. Working with our military communities is very similar to working with the general public except when it comes to the benefits awarded to them due to their service. Start by educating yourself on the market. Next, give yourself to their needs. After that, investigate providing monetary support via sponsorship or advertising where there is a need. Finally, lean into your value

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Land of the Free Because of the Brave! ith Veteran’s Day coming up, a lot of lenders will start advertising the VA home loan program. Why is there a special program for veterans? What does it really do for veterans and why is it better for them than any other loan program? The biggest benefit of all might surprise you! When someone joins the military they often do it for either institutional or occupational reasons. Institutional meaning that it is a tradition in their family with generations having served and a sense of honor and pride compels them to do so. Occupational in the sense that it offers opportunities that may not have existed for an individual in their civilian life. Either way, they make a choice to serve their country. What is so unique about

their profession is that they also make a conscious choice to possibly put themselves in harm’s way. They expose themselves to actual physical danger. They aren’t highly compensated. They are required to uproot and relocate themselves frequently. They spend a lot of time away from their families. They often deal with significant trauma. And then, they return to a society that doesn’t really understand what they may have experienced. Not since 1973 has military service been required. After the Vietnam War, the draft was done away with and it has been voluntary to serve. Now, volunteers sign an agreement to stay in the military for three to six years depending on the job they chose. According to a survey conducted by the armed services, Americans join the

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By Mary Kamelle

service for the following reasons: l To serve your country and protect your country’s liberty and freedom l Travel the world l Help stop terrorism l College education benefits l Get a good paying job l Duty and honor for your country l Family tradition l To improve yourself and learn new skills l Get a career l Turn your life around The above are all great reasons to serve and completely justifiable, but whatever the reason, there is sacrifice involved. Civilians often ask how can we give back to veterans for their service? While no respondents mentioned the benefit of the VA home loan program as a reason they joined the military, this program is a way that we give back to

veterans for their service. This taxpayer-funded program provides a 100 percent financing option to get veterans into a stable home. One of the biggest challenges vets face is getting integrated back into the community. Homeownership is one of the best ways to get involved in a community and feel part of something bigger than yourself. Many veterans questioned in the survey mentioned they missed the camaraderie of the military when they returned home. Homeownership can help them get rooted and start building their civilian life again. Each veteran’s situation is different, and they would need to sit down with a loan officer who is conversant in the program. Many lenders offer a VA loan, but it really makes a difference in terms of ease and maximizing the VA benefit, if

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you work with a specialist. I spoke with a Keith Murray, a Loan Officer at Mortgage Equity Partners, who is also a veteran to get his perspective about why it is rewarding to serve this population of borrowers and how the program truly benefits them. Here is what he had to say …

So, what are they grateful for? The VA home loan program has some flexible guidelines that make it easier for vets who may not have a lot of money for a downpayment to get financed. They may have had financial challenges when serving out of the country. A bill may have been missed here or there or paid late. These things will negatively impact credit scores. The VA loan has been designed with insight and compassion into their specific challenges. Here are seven reasons you should get a VA home loan if you are a veteran:

“Civilians often ask how can we give back to veterans for their service? While no respondents mentioned the benefit of the VA home loan program as a reason they joined the military, this program is a way that we give back to veterans for their service.” 85 l No prepayment penalty. Many loan programs charge the borrower a penalty for paying off their loan early. This may happen if the homeowner decides to sell or refinances their existing property. Fortunately, VA loans don’t charge this type of fee, which gives you more freedom and flexibility. l VA loans are assumable. An assumable loan means your VA loan can be transferred to a future buyer if the buyer is also eligible for a VA loan. If the rate on your loan is more favorable than current market rates when it comes time to sell, it could be a major selling point and help you close the deal faster. The jury is still out on whether to thank veterans for their service or respect their sense of humility.

But the VA home loan program is a step in the right direction and has been inadvertently thanking them for many years. In the end, it seems that the biggest hurdle our veterans face when they return from active duty isn’t only a lack of funds to purchase a home. Most vets are seeking a feeling of belonging when they return from active duty. They want to be a part of something and they miss the sense of community they felt among their military peers. One of the best ways to become engaged and to feel a sense of belonging is to be part of a community through homeownership. Owning a home tethers you to a town, school and the people in it. This is reason why the VA loan is so special, it makes it easier for our military to assimilate back into civilian society.

Mary Kamelle is Marketing Manager at Mortgage Equity Partners and a content writer based out of Lynnfield, Mass. She can be reached by phone at (781) 309-1773 or e-mail MKamelle@MEPLoans.com.

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l No downpayment. VA loans can be 100 percent financed, meaning you don’t have to save up for a downpayment. Keep in mind, paying a small amount toward a down payment will save you money in the long run. l Affordable closing costs. With traditional loan programs, you could pay anywhere from two percent to five percent of the home’s purchase price on closing costs. With a VA loan, there is a limit on the amount you can be charged for closing costs, which provides an added money-saving benefit to the borrower. l No mortgage insurance. If you put less than 20 percent down on a traditional mortgage, you’ll typically be required to pay mortgage insurance, which gets added to your monthly mortgage payment. VA loans save you money by not requiring mortgage insurance. l Competitive rates. VA loans are backed by the government, which provides a guarantee to the lender in case you default on your loan. Because of this guarantee, lenders can offer better loan terms and interest rates, helping you to save money. l Reusable benefits. Already took out a VA home loan? Your VA benefits are reusable, so you can use your benefit, again and again, making affordable homeownership attainable over the course of your life.

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“From a Loan Officer’s perspective, it is rewarding to help those that have sacrificed so much. Might sound cliché but it’s true. Veterans have devoted their lives and their families’ lives to the service of us whether in harm’s way or in a support role. They willingly put their life on the line every day so that the rest of us can live the lives we enjoy. I love the phrase ‘Land of the Free Because of the Brave.’ “I recently helped a vet who returned from Afghanistan disabled. He and his wife were looking for a home, but had limited funds to work with. The VA loan, combined with our refund of the origination fee, made it possible. I was able to work with the buyer agent to get the seller to contribute to the closing costs and my buyers were able to finance their home with just a couple of thousand dollars. Seeing their faces and gratitude at the closing table makes it worth it. “From a Veteran’s perspective, I can say I have used my benefit and purchased my first house with a VA loan back in 2001. The loan process is very easy and without a downpayment requirement this loan made it possible for me to buy a home where otherwise I could not. This is a great way for vets to get into homeownership and build wealth instead of renting. Without the VA loan, I may still be renting! The VA loan also has easier qualifications than a traditional loan making it that much easier for us get financed. A traditional loan penalizes you for a lower credit score and has tighter restrictions on income and debt calculations. A VA loan is more forgiving, more affordable and a great loan for vets. It’s nice to have something devoted to just veterans and active duty military. This may sound strange but, many of us struggle with people saying thank you and showing public gratitude. I understand why people openly say, ‘Thank you for your service,’ but most of us didn’t serve for notoriety or to be singled out. It

was just our duty. This is one of those things that allow for a show of gratitude without it being public and uncomfortable.”— Keith Murray

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How My Service in Vietnam Aided My Career By Ira Lynn Karnofsky

erving in Vietnam took its toll on every soldier. At times, it was terrifying, and no one returns the same as when they left. Looking back, there were many life lessons from the experience that eventually helped me to become successful in civilian life. When I returned from Vietnam, no one said, “Thank you for your service,” like they do today. Most people thought that the war was ridiculous and that we shouldn’t be there. I grew up in Los Angeles as the son of a father who served in the military. My parents met in Texas, where they shared part of a room. It wasn’t easy back then. My dad signed up for the military because his father told him to. When I registered for the draft, I did so as a conscientious objector. While people initially harassed me, that all changed once I became a medic. I experienced a different level of respect, even though I didn’t carry a gun. Why did I choose to be a medic? I didn’t. The Army did because I had earned my first aid merit badge in the Boy Scouts. My army medical training was not real medical training. Nothing prepares you for what you encounter in war. I remember a time when we were in what the Vietnamese called a city. To me, it was just a bunch of grass huts. I had to deliver a baby—something I had never done before. In war, you do things you wouldn’t think of doing in civilian life. You learn to improvise and are expected to accept a lot of responsibility at a young age. People often ask me if my military experience in Vietnam translated well to civilian life. The answer is a resounding “Yes.” Before I entered the service, I was not accustomed to making decisions on my own. That all changed in the military. I also learned to have a thick skin and push forward to get to where you want to

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“I learned to have thick skin, push forward and to get to where you want to go.”

go. These traits have served me well as a civilian. Vietnam was a strange war, and unlike others that came before it. The news media began to report on the realities of being at war and often questioned our rationale for being in Vietnam. The military said one thing, the media said something else, and what actually happened fell someplace in between. As someone on the ground, it was hard to find the truth, so I learned about the importance of telling the truth at an early age. When someone is dying in your hands and wants to know the truth about their condition, you realize that it may be the last words they hear. Your instinct is to help them cope with death when the truth is what they really want to hear. Although real estate is not a life or death situation, finding the truth in every loan scenario often changes the lives of the investors we serve. When I research a loan

scenario and make recommendations, it impacts the lives of people for a long time. With limited medical training from the army, I developed research skills and learned to look things up in books (we didn’t have the Internet back then). Most of the doctors I worked with had just graduated from medical school, and they were looking things up in medical books, too. The army taught me how to conduct thorough research. My experience also taught me how to solve problems and remain calm even in the most extreme conditions. When I served in the 101st Airborne, I was trained to repel from a helicopter—something that’s difficult to do when the enemy is shooting at you. But you have to keep working and moving even as you hear the bullets whizzing by. All the while, you have to keep your wits about you even when under a tremendous amount of stress. War is not like a Rambo

movie; no one gets up and charges when bullets are coming at you. Rather, you’re on the ground, as low as you can go. When the shooting stops, you have to move fast. I was about 130 pounds, and my pack was 70 pounds. But you can’t give up; you have to find a way to accomplish the task in front of you. That experience is important whether you are dispensing pain medications on the battlefield or helping someone close a real estate investment deal. When you know how much a property means to an investor, you’re willing to work hard to find a way to meet their expectations. When I returned from the war, I got into the real estate business. I’ve worn lots of hats in this industry. Initially, a friend of the family got me into the mailroom, where I stuffed envelopes. Eventually, I learned how to write loans and got my real estate license. My friend took me out in the field and taught me how to appraise properties. I was honest and did my research, so it worked well. I joined Velocity Mortgage Capital over a decade ago, and have moved up the ranks to become a Senior Analyst. Up until three months ago, I was reviewing real estate appraisals nationwide to determine if the appraisals were credible. Now I look at whether another analyst, myself or an appraiser made an error and then try to determine what market forces might have caused the value of the property or marketplace to change. I use-problem solving skills all day long, just like when I was in the military. Over the years, I have learned how to cope with what I saw in Vietnam. I suffered from Post-Traumatic Stress Disorder (PTSD), a mental health condition that’s triggered by a terrifying event. I learned how to cope. For instance, I do not watch war movies or medical movies to prevent flashbacks. I’m 71years-old, but the events I

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experienced over 50 years ago still haunt me. As I look back on my service in the military and compare it to what I’m doing today, there are several ways in which my service benefited me:

work well with others. They are team players and have learned to put group goals in the forefront. You can only do so

much by yourself. So while the field of battle is different now, the lessons I learned from my service still apply.

Ira Lynn Karnofsky is a Real Estate Analyst for Velocity Mortgage Capital. Ira is also a Vietnam veteran and Bronze Star Awardee with Valor Devise.

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1. I learned to deal with situations that I had not encountered before. Stay calm and think about the most reasonable thing to do. As a medic, I initially thought I would pass out at the sight of blood. But I quickly learned how to access a soldier’s injuries, grab a bunch of bandages, tape him up and move on. You don’t have time to dwell on it. You move on to the next person, the next challenge. I never knew what happened to the people I treated once I left their side. 2. In real estate, just like in the military, no two things are the same. You look at a property and the aspects of the deal and then determine whether it is a good value or not. What you do impacts the bottom line. I’m always looking for a way to make better loans. My job is to manage potential loss. That’s what I did as a medic in the army. 3. Technology changes things. The uniforms, weapons, and training now are all different from the Vietnam era. The military has evolved. It’s the same thing in business. We don’t do things entirely the same way as we did ten years ago. Today, computers and data analytics are so sophisticated compared to when I started in this industry. That sophistication helps us to assess properties and minimize risk better. 4. Teamwork is important. I don’t think anyone in the military thinks only about themselves. The military is all about teamwork and staying alive. Here at Velocity, we wouldn’t be successful if we didn’t act as a team. Funding a loan takes a lot of work from people with different talents. Everyone must work together to accomplish the task.

Today, I make decisions that affect other people—possibly for a long time. In the service, I learned that your actions impact other people significantly. You learn not to take shortcuts and how to do things the right way. I like what I do and truly look forward to getting up each morning and talking to and working with people. That’s why it’s a great idea to hire veterans. They know how to

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Lending to Veterans The best ways to serve those who served By Casey McGovern

one of the things we enjoy as Americans—our families, careers, homes, health or happiness—would be possible without the unwavering dedication of the men and women of our armed forces. From the patriots who rebelled against oppression at the birth of this country some 240 years ago, to our brave servicemembers fighting today’s battles overseas and at home, we owe an eternal debt of gratitude for our freedoms and our liberty. One way we can pay them back is by ensuring their access to home lending services. Too often, veterans and active duty members aren’t fully aware of the financial rewards they earned through their honorable service. Insured against default by the Department of Veteran’s Affairs, the Veterans Administration (VA) loan program is available exclusively to veterans, active duty servicemembers, national guardsmen and reservists. VA Loans are rewarding for borrowers and lenders – both financially and personally. Kevin Grampp, our Area Sales Manager out in Goodyear, Ariz., is one of our company’s most successful VA lenders, and I think he puts it about as succinctly as possible: “The truth is, we owe it to these people” Grampp said. “I’m sitting here at a desk, and I can’t even imagine what it’s like to put your life on the line every day for the things we take for granted. It’s a great program, and our veterans deserve the very best.”

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Get educated! While most of the parameters are well-established, VA lending rules veer from the conventional loan process on a few key levels, including differences in credit scoring, down payment requirements and interest rates. Therefore, it’s essential for originators to be personally welleducated and informed about the most up-to-date rules and regulations. Some lesser-known topics

include the fact that eligibility may extend to certain honorably discharged personnel with serviceconnected injuries or other reasons. Additionally, many surviving spouses may also be eligible. Here’s another fact … VA loans aren’t the only benefit available, and a well-informed VA lender should know if their state offers additional programs, including lower interest rates, zero-interest loans and other benefits. Most states do, though each comes with its own set of restrictions, eligibility requirements and other fine print. Veterans receive a mountain of mailers and email about all of these programs, usually accompanied by a 1-800 number to call some faceless office. That kind of information overload is a big marketing misjudgment many VA lenders are making today. Most veterans are straightshooter types, with a fondness for getting questions answered by an actual person. They want the kind of service that’s available face-toface, at a local level. So, get involved! The most successful VA lenders get personally involved. Check in with administrators at your local VA office or hospital for information about all the great veteran-related activities going on in your communities. Joining the local chapter of the American Legion or similar organizations are great ways to beef up your list of potential clients! Grampp himself is very involved in Pets & Vets, an organization matching companion dogs with veterans suffering from emotional and physical injuries. With all these avenues available to meet veterans, it’s a good time to sweeten the deal with an added incentive. Bay Equity, for example, features the exclusive “Giving to Heroes” closing cost credit program. Military members are just one of several categories of servicefocused professionals–either active or retired–entitled to credits on closing costs and partial refunds of Realtor commissions. Grampp said “Giving to Heroes” has become his VA loan bread-andbutter.

“From the patriots who rebelled against oppression at the birth of this country some 240 years ago, to our brave servicemembers fighting today’s battles overseas and at home, we owe an eternal debt of gratitude for our freedoms and our liberty.” No substitute for experience As you gain more VA lending experience, you’ll find there are a wealth of learning opportunities. Like anything else, it’s up to you to take advantage. What seems like a trivial piece of information could be just the leverage needed to make a VA work. All VA-approved lenders have inside access to information on how borrowers can obtain the allimportant Certificate of Eligibility, commonly referred to as a “COE.” Notorious for complicating matters early on, the COE contains important information to help veterans calculate their entitlement (how much the VA will guarantee) as well as the accompanying loan fees. Mastering the intricacies of the COE is a big leg up on attracting and sustaining VA business. Grampp isn’t above pushing a few buttons and knocking on a few doors to serve his clients. Once, when one of his clients needed his paperwork so he could move into his new purchase, the VA told him it would be a 70-day wait. “This guy hasn’t been in the military for about 30 years, and he’s looking at two-months plus living out of a suitcase?” Grampp said. “So, I pick up the phone and call the local Congressman. Within

a couple of hours, his assistant is on the phone asking a few questions, and we get the COE the next day!” Share your knowledge Also important is getting your VA knowledge out to your partners in the real estate business. Many Realtors aren’t marketing their homes to this large consumer audience because they incorrectly believe that it’s more difficult to get approved for a VA Loan. They also wrongly believe the VA appraisal process is more difficult than conventional home appraisal process. Senior Loan Officer Adam Boles, who is also a veteran, makes a point of knowing all the ins and outs of the VA loan process and shares the possibilities with his real estate contacts. “Everyone seems to think there are all these layers and it’s a difficult process but it’s not<” said Boles. “Realtors for the most part don’t have a clue about these loans and the process, so they don’t accept these offers. For an LO to mildly know the guidelines is a big deal.” Refinancing options, too! Just as important as purchase loans is the ability to refinance a VA home loan or change an Adjustable Rate VA Mortgage (ARM) to a fixed rate.

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The VA Interest Rate Reduction Refinance Loan (IRRRL) is a VA to VA refinance, allowed only on properties on which a veteran has already used his or her VA loan eligibility. There is no appraisal or credit underwriting package and there are options for “no money out of pocket.” Bottom line is, refinancing with an IRRRL can potentially reduce the interest rate, payment, and overall interest on a VA mortgage loan. It’s a great option for many military members. A signature cause When we founded Bay Equity in 2007, we committed to having an impact in the communities we serve. Many of our current team members, family members, friends and clients are veterans. Our respect for the military led us to look for ways to show support. And that’s how we discovered Sandy Lehmkuhler and the Warrior Foundation Freedom Station. When we first met Sandy a few years back, we were absolutely floored by her charisma and ability to

connect with veterans and people in general. Sandy founded Warrior Foundation Freedom Station as a transitional housing community for injured veterans, providing acclimation time, guidance and resources to successfully make the transition from military service to civilian life. Bay Equity donates a portion of each closed VA and FHA loan to the Warrior Foundation Freedom Station. In addition to its work with the Warrior Foundation Freedom Station, we have also served as a sponsor for the East Bay Stand Down, a bi-annual event to help needy veterans in the San Francisco Bay Area. Supporting military-focused charities like these is another way to serve the community and build long-term relationships. Bay Equity Home Loans not only supports the Warrior Foundation, it has directly assisted several of them in finding home mortgages. Homes for Warriors Eight short years ago, Mike Spivey was serving in Afghanistan when

the blast from an IED (Improvised Explosive Device) took off the majority of his arm below the elbow. The shrapnel from the explosion also injured his legs and back, and he suffered severe hearing loss. Spivey’s military career was over. He was soon on a plane back to the States. Eventually assigned to the U.S. Naval Medical Center in San Diego, he was lucky enough to meet Lehmkuhler. A few months later, Lehmkuhler introduced him to a Bay Equity Loan Officer at a Warrior Foundation event. Spivey hadn’t even been looking, but things really took off from there. “A couple weeks later, the loan officer introduced me to her friend who is a Realtor, and (she) found me the type of house I was looking for,” Spivey said. “After about a month, I signed the document for my house. Between the two of them, it was really simple.”

Spivey was also able to use VA funding for a major remodel of his new home. Conclusion Becoming a better VA lender is all about making connections. The obvious first step is completing an Application for Authority to Close Loan on an Automatic Basis NonSupervised Lenders. Yes, it’s a mouthful. But all the materials you’ll need are right on the VA Regional Loan Center Web site. Once you’re approved, you’ve punched your ticket to the rewarding and profitable world of the Veterans Administration (VA) loans. Available exclusively to veterans, active duty service members, national guardsmen and reservists, they’re insured against default by the Department of Veteran’s Affairs. “It’s a great loan and an easy loan,” Grampp said. “There are a lot of veterans out there who are able to take advantage.”

Casey McGovern is a Founder, a Managing Director and Board Member of Bay Equity LLC. Casey is in his 12th year as a mortgage industry sales professional. He is responsible for managing Bay Equity’s loan production and operations. 89

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Serving Those Who Serve By Geetesh Kapoor

hen my family moved here almost 20 years ago from India, my parents were coerced into purchasing a home. Their lender had very little knowledge of the mortgage product they ultimately purchased, and as a result, they found themselves year’s later no longer homeowners. It was then that I decided I wanted to work in the housing industry and made it my mission to learn as much as I could. I entered the mortgage industry to help people. I found the opportunity to be an educator; working to empower my clients to make the best home-purchase decision and ensure that each client obtained a thorough understanding of the mortgage process and their specific mortgage program, so that they felt empowered when making what I would argue to be the largest financial decision in most people’s lives. Where I found my passion in the mortgage industry however, was in assisting our active-duty servicemembers and veterans with their homebuying process and ensuring that they were fully educated about their VA benefit. I have learned to start every discussion with any potential client with the question, “Have you ever served in the armed forces.” Throughout my years specializing in VA loans, I’ve found that more often than not, those eligible for a VA loan are the most misinformed buyers due to several misconceptions about the product and oftentimes they’re scared by stories throughout the industry that raise doubts about the benefits and power of a VA loan. A true understanding of why those eligible should choose a VA loan, the important facts about the product, how to best support the military community, and an understanding of common military terms relating to housing is imperative to a successful transaction, and I believe should be a requirement for those originating VA loans.

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Why choose a VA loan? For the majority of our active-duty servicemembers and veterans, the VA loan product is the most powerful product on the market. However, I have found that there is a lack of understanding of the products true benefits. Some of the key highlights of the product are: l VA loans are guaranteed by the U.S. Department of Veteran Affairs. l VA loans tend to offer lower interest rates and fees with no private mortgage insurance and low downpayment options. l VA loans do not require a specific credit score to qualify, however most mortgage lenders do require a minimum of a 600 credit score. Each lender is different, so this is an important point to discuss with the specific Loan Officer. l VA loan eligibility never expires and the benefit can be used more than once, and on multiple properties at once, depending on eligibility requirements. l VA loans are assumable meaning if a veteran sells their house to another buyer, the buyer can assume the current mortgage at whatever interest rate the seller originally obtained and release the seller from any liability. If the buyer is also a veteran a request can be submitted to transfer the entitlement used from the seller to the buyer. This is important especially in a rising interest rate environment. How to best support the military community Throughout my career, I have found there are two components that are essential for supporting and integrating yourself in the military community. The first is education; not only educating buyers about their benefit but also educating Realtors. With the general lack of

understanding and the stigma around the VA loan product, there is some hesitance in accepting a VA home loan offer in a multiple-offer situation. Part of my business model has been to truly educate my sphere of realtors on why a VA home loan offer is just as good, if not better, than any other offer they could receive with a mortgage contingency. The second essential piece is understanding the characteristics of the veteran community and how you can be of the most value. The thing I’ve found most valuable when working with those using their VA benefit is to truly listen. Understanding that the person or people you are working with have likely been through more life experiences than you as the lender or real estate agent could ever imagine and letting them know you are there for them in more ways than simply just the tactical function of your job can make all the difference. Who qualifies for a VA loan? VA loans are applicable to active duty military, veterans, reservists, specific spouses, certain U.S. citizens who served in the armed forces of a government allied with the U.S. in World War II and individuals with service as members of certain affiliated military organizations. Eligibility requirements are specific and detailed for the VA loan program so understanding the exact requirements is imperative. As a Loan Officer, it is vital to ask your clients if they fall into any of these categories so that you can best

serve those that have served our country. Common military housing terms l Basic Allowance for Housing (BAH): A United States military privilege given to many military members. l Certificate of Eligibility (COE): All VA loans require that the buyer has a VA Certificate of eligibility. l Permanent Change of Station (PCS): An official relocation of an active duty military member and any immediate family members. l Basic Allowance for Subsistence (BAS): An allowance used to pay for food for enlisted soldiers and officers. l Expiration of Term of Service (ETS): Separation typically occurs when someone reaches their ETS and are released from active duty, but still must complete their military reserve obligations. Summing it all up A true understanding of the ins-and-outs of VA loans takes time and it is essential to those serving the veteran community; for both Loan Officers and Real Estate Agents alike. Given my passion for the veteran community and for the VA loan product, I believe it is imperative to stay up-to-date on all guidelines and ensure I understand any and all requirements in order to educate my clients and the real estate community. It’s the least I can do; to serve those who are serving or have served our country.

Geetesh Kapoor is a Producing Branch Manager for Fairway Independent Mortgage Corporation. He has more than 15 years of mortgage experience and is a trusted advisor, providing highly personalized service and support to his clients and Realtor partners throughout every step of the loan process. He is Military Certified and donates a percentage of his commission from every VA loan he closes to The American Warrior Initiative, a 501c3 founded by members of Fairway.

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Serving Active Duty Members? Meet RON. By Rick Triola

ecause of the transient nature of today’s population, lenders are increasingly encountering borrowers that, for one reason or another, cannot be physically present for the mortgage closing. These instances increase dramatically when working with members of the United States Armed Forces, as servicemembers can be deployed overseas or in the process of moving from one assignment to the next. Thankfully, Remote Online Notarization (RON) has become a far more prevalent practice in today’s mortgage environment, providing all parties a convenient, legally acceptable solution to this conundrum. What’s more, several states–including Texas, Virginia, Montana and Nevada–allow their notaries to perform RONs for transactions nationwide. This

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eliminates yet another barrier to enabling not just servicemembers, but borrowers in general, to complete their mortgage closing at the day, time and location that is most convenient for them. Thus, lenders that specialize in serving members of the military and/or VA loans would be well-advised to adopt RON as yet another strategy to meet the needs of these highly specialized borrowers. The following is a real-world example of how RON helped one military family complete its mortgage transaction despite being scattered across the country and, thus, unable to complete the closing in-person. Four states, one closing The summer of 2018 was a busy one for the Jacksons, a young military family serving the U.S. Army, as they undertook a move from their Washington State deployment to a new assignment at

“…active duty members and their families may already be under tremendous stress that has little to do with the homebuying process itself. Thus, it is crucial that the closing process goes off without a hitch, and lenders can ill afford to leverage untested technology to facilitate this critical function.”

Georgia’s Fort Stewart near Savannah. Circumstances came about that required multiple members of the Jackson family to be in multiple states on closing day—RON became a linchpin to making their home together in a new state. As Dana remembers it, “We were stationed in Lakewood, Washington and were being restationed to Fort Stewart near Savannah, Georgia. We had bought our house in Lakewood five years ago, so we were in the process both of selling that house and buying the one in Georgia. “As we were closing on the house in Washington, my husband was winding down his duties there, and I was spending a couple of weeks with my mom in Illinois. My mother in law, who with my late father-in-law had co-signed on the first house and had taken on some of the signing duties, was in Missouri. “Although I had never bought a house or been to a closing, both my husband and his mother had.

Regardless, it could not have been easier. It was an all-around awesome experience. The notary we worked with was awesome. She was so great—she walked us through everything. We were all on split screen, since we had four different screens going, so we were all wired in looking at each other from four separate states, coast-tocoast. “Our notary walked each person through what they needed to sign. It was easy and just about 30 minutes of everyone connected. Seriously, I mean the hardest part was picking the time. And then after that it couldn’t have run smoother.” Of course, the Jacksons had taken the time to look at all their documents ahead of time. Of those four screens open and participating in the closing, one was an iPad and three were laptop computers. And as for her mother-in-law, a Baby Boomer whose previous closings had been of the traditional, all at one place, literally at the same table, type, Dana said,

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â&#x20AC;&#x153;You know I think at first everyone had a little uncertainty, wondering whatâ&#x20AC;&#x2122;s going to happen, but once it started everything went smoothly. â&#x20AC;&#x153;The notary walked each of us through our part. My husband first, and then me and then my mother in law, so by the time it came her turn, sheâ&#x20AC;&#x2122;d been through it twice, so she knew exactly where to go in the document, Again, the person that we were working with, even though Iâ&#x20AC;&#x2122;ve forgotten her name, she was great. She knew what she was doing. She knew exactly where the signatures were needed, which pages needed to be signed. She really just walked us through the whole entire thing. The service was great. Super easy experience. â&#x20AC;&#x153;From our perspective, what could have been a day full of confusion and anxiety turned out to be a pleasant surpriseâ&#x20AC;&#x201D;a day weâ&#x20AC;&#x2122;ll remember for so many reasons, not the least of which being that in todayâ&#x20AC;&#x2122;s world, it is still possible for families to support one another even when duty calls us away.â&#x20AC;?

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Rick Triola is Founder and Chief Executive Officer of NotaryCam, a Newport Beach, Calif.-based provider of remote, online notarization and identity verification systems. He has decades of real estate industry experience, in New York and California, in residential and commercial, in sales and settlement. Since 1999, Rick has been a tech entrepreneur, focusing on eSigning, eNotary, and his â&#x20AC;&#x153;Holy Grail,â&#x20AC;? a completely electronic, frictionless, real estate and mortgage eClosing.

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Getting up & RON-ning As this story illustrates, RON holds tremendous potential to not only improve the homebuying experience, but to also provide lenders with true value-add and competitive differentiator in markets with a strong military presence and with active duty VA borrowers. However, there are some things lenders need to keep in mind when implementing RON and its associated technology in their organizations. First, lenders must be sure that the RON platform they choose has a proven track record of success. The closing process is the final interaction that the homebuyer will have with the lenderâ&#x20AC;&#x201D;even if the title company or a closing attorney is performing the actual closing, and the impression the homebuyer is left with once the process is complete will ultimately color how they view the entire transaction in hindsight. Whatâ&#x20AC;&#x2122;s more, active duty members and their families

may already be under tremendous stress that has little to do with the homebuying process itself. Thus, it is crucial that the closing process goes off without a hitch, and lenders can ill afford to leverage untested technology to facilitate this critical function. In addition, the chosen platform should also be flexible enough to accommodate a mortgage closing in whatever form it may happen to take. Due to variances in state laws and the unique set of circumstances and characteristics that make up each real estate transaction, no two mortgage closings are ever alike. As such, the technology facilitating this process must be able to account for those variances and nuances to ensure a smooth, seamless, compliant process. Finally, the platform itself should be easy to use from the borrowerâ&#x20AC;&#x2122;s perspective. Ideally, the borrower should be able to simply log in to a secure, online portal and use the video capabilities of their preferred device (laptop, tablet, phone, etc.) to complete the transaction. Anything more complicated than that will ultimately prove overly burdensome, especially if the borrower is required to download and install licensed software and/or an app for what may ultimately prove to be an infrequent transaction. Keeping these items in mind when selecting a RON platform ensures that innovation does not lead to disruption in the closing process, especially when serving active duty homebuyers. In addition, lenders can help their active duty home buyers stay engaged in the process despite not being physically present for the completion of the transaction while also eliminating a major stressor, and sometimes a barrier, to the homebuying process. Members of the military sacrifice so much in service to their country. Adopting remote online notarization is an easy, yet effective way lenders can make the process of buying a home while deployed or in between assignments as simple and convenient as possible.

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What Military Men and Women Should Know About Their Credit By Rory Tipton hether a person is thinking about joining the military, has been enlisted for years, or is a veteran, it’s important they think about and act to protect their credit. There are a variety of ways credit scores can be affected negatively, which then impacts the person’s ability to purchase a house, car, or even secure a credit card. Military men and women face additional challenges in building and keeping their credit report clean and their credit scores high. They should proactively prepare for some unforeseen scenarios to maintain excellent credit. First off, if you are planning to enlist, know that …

The military does check credit reports Joining a branch of service

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requires a check of a person’s financial strength. If an individual displays past credit history issues, it could cause him or her to be denied entry. Keep in mind, the regulations vary slightly by the branch. What are some of these? l Overdue loans and collections: Letting debt get out of control to the point the obligations go unpaid is looked upon negatively from every branch of service. It is explained succinctly in Article 134 of the Uniform Code of Military Justice (UCMJ). Servicemen and women can get into trouble by not paying their debts, especially if they do it with deceit, false promises or any other action that shows deliberate nonpayment. l Too much debt: Depending on

the branch of service, if the amount of debt reported on the credit report is too large in comparison to the person’s potential military salary, that individual will be denied entry. l Bankruptcy: A bankruptcy doesn’t automatically disqualify a person from enlisting in the military. Several factors go into deciding whether a person would be able to serve competently and effectively. It will, however, be looked upon negatively. Your credit report can affect promotions Keep in mind these scenarios don’t only affect being able to join the military, they can weigh on getting a security clearance and being able to advance in the military. Large amounts of debt can make a person desperate and more likely to perform illegal activities for money. This is a serious consideration when an individual is trying to get security clearance. A credit report is considered a valuable tool by the military to use in building a thorough profile as to a person’s overall trustworthiness and credibility. Individuals who want to join the military, or are enlisted and hope to attain security clearance, should take these steps to protect their credit: l Order a credit report: Unfortunately, credit reports can contain errors that negatively affect a person’s credit standing. People with similar names and accidental Social Security Number typos are two common ways incorrect information ends up in a credit file. Go to AnnualCreditReport.com and order free copies of every bureau. Review every line and make certain you recognize the debtor and that your balances are correct. If you see errors, dispute them with the bureaus immediately to get them removed. l Pay your bills on time: Set calendar alerts to ensure you make your monthly payments

on time. Staying current is the simplest way to keep your finances from careening out of control. l Manage your debt load: Try your best to stay out of debt. If you do purchase something on credit, make certain the payments fit into your budget. Say no to frivolous and impulsive purchases that you can’t afford to pay for with cash. Identity theft and its effect on servicemembers Knowing the importance of the credit report to a military career is the first step in protecting it. Once in the military, individuals run more of a risk to their credit than ever. That’s because identity theft is rampant. There were more than 100,000 complaints of identity theft from consumers in the armed services in 2016. There are a few key reasons it’s so common: l The military’s version of the Equifax breach happened in 2014 when hackers scored more than 21 million servicemembers’ Social Security Numbers. l Veterans are more accustomed to sharing their personal information than civilians. The Departments of Veteran’s Affairs and Defense have always identified enlisted men and women primarily by their Social Security Numbers. Private citizens tend to guard their information more closely. l Being out of pocket for weeks or months at a time is a factor. Being stationed out of the country for a lengthy period isn’t conducive to closely examining credit card statements or noticing new credit cards right away. Being a victim of identity theft can cause trouble for an individual in a variety of ways. One of those is by ruining your credit with fake accounts and unpaid debt. Fortunately, there are two ways folks in the military can guard against the risk of identity theft wreaking havoc on their credit, and their lives. An active duty alert Enlisted military men and women have the option to place an active duty alert on their

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To sum it all up, military men and women should take measures to build, tend, and maintain healthy credit. Not only does positive credit history and smart financial management help to enlist in the military, it plays a significant role in gaining security clearance that’s crucial for

certain promotions. In addition, vigilance is required in guarding against identity thieves who prey on active servicemembers. Taking

proactive steps to secure your identity is easier than dealing with stolen lines of credit, unpaid debt, and new fraudulent credit opened in your name.

Rory Tipton is Lending Solutions Sales Manager for Cordova, Tenn.-based Data Facts Inc. He may be reached by e-mail at RTipton@DataFacts.com.

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Security freeze A security freeze protects your credit as well. For extra peace of mind, servicemembers should consider adding a security freeze on their credit report. It goes a step beyond the active duty alert in that nobody, not even the individual, can open new lines of credit without providing a PIN to the bureaus. To freeze a credit report, an individual must: 1. Contact each credit bureau and request they freeze your credit. 2. Be ready to supply the bureaus with name, address, Social Security Number, and any other identifying information. 3. A small fee was required in the past, but as of Sept. 18, 2018, security freezes are free to everyone. 4. The bureaus will issue you a PIN. Keep it in a safe place because it’s required to be able to un-freeze your credit. 5. To lift the credit freeze, contact the bureaus with the PIN. Keep in mind this might take a few days so don’t

expect your credit to be available immediately. 6. Security freezes on credit reports last one year.

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credit reports to help decrease the chances of identity theft. Here’s how it works: 1. Contact one of the three credit bureaus, Equifax, TransUnion or Experian. 2. Request an “Active Duty Alert” be placed on your credit report. This notifies creditors you are enlisted in the military and are currently on active duty. 3. The bureau you speak with is required to notify the other two bureaus. 4. If a credit report is pulled and shows an active duty alert, the lender is asked to take steps to verify the identity of the applicant before extending credit. 5. Be sure to note the date you placed the active duty alert on your credit report as it only lasts one year. After that, it needs to be renewed if the enlisted individual is still deployed. 6. The bureaus also remove those who have active duty alerts on their credit report from receiving pre-screened offers of credit. This minimizes the instances of fraudulent new credit being opened in the enlisted individual’s name.

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Lender Education Is Key With VA Loans By Todd Jones & Mike Eshelman

he brave men and women of our military, along with their families, have made incredible sacrifices to ensure our liberties and freedoms are protected. For that, we are emphatically grateful. Whether you are walking through an airport, working out at the gym, enjoying a neighborhood gathering, or going about your usual day at work, you are likely to cross paths with one of America’s heroes. In fact, many of you employ servicemembers or have served in the military yourself. But, for all the service and sacrifice, many aren’t taking advantage of their benefits, especially the VA loan program. Of the 21 million veterans and their families who live in the U.S., only six percent have

bought or refinanced their home using a VA home loan in past five years. That number could—and should—be much higher. VA loans can provide benefits over non-VA home loan products and you’d be hard-pressed to find a lender who cannot offer VA loans. If there are clear benefits and easy access to VA loans, why aren’t more veterans leveraging their benefits when refinancing or assist purchasing a new home?

women on these programs. We also refer customers to a network of Realtors who are certified and VA-friendly. We’re doing what we can to not only educate our brave men and women, but also the Realtors who wish to serve them as their real estate professional. Below you’ll find a few tips on how lenders can identify and support servicemembers in their efforts to secure a VA loan.

Education is the key Servicemembers often don’t understand what benefits are available to them and how VA loan programs are different from non-VA loan programs. For example, BBMC has a partnership with the USO where we visit military bases to educate our men and

Basic training As a starting point, nail the basics. Gather your office together and determine how well-educated the entire team is on VA loans. More information can be found in “Summary of VA Home Loan Guaranty Benefits.” The market has shifted, and lenders are all looking for ways to win more business and serve more customers. Why not start with a renewed effort towards one of the largest communities out there, the veteran community?

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Create a positive experience Once you have confirmed your staff is well-trained, identify events in which your company can actively participate. In our experience, being a dedicated and active participant in veteran-focused events, and not simply a financial sponsor, amplifies the results associated with sponsoring such events. Similarly, partnering and building relationships with non-profit organizations focused on serving military families, especially during the holidays, will also show your support and appreciation. If you’re interested in learning more about these organizations and their causes, we’ve listed some below to which we highly recommend reaching out. When a new prospective customer, who is a veteran, is interested in obtaining a mortgage from your company,

route those customers to Loan Officers that are the most well-trained in VA loans, and/or a veteran themselves, if possible. The veteran community is a unique community. The members of this community have a bond that cannot be manufactured, and because of that, there is an instant respect and trust built-in to their relationship. By routing prospective VA customers to these Loan Officers, there is a greater likelihood that the benefits will be communicated properly and more of our heroes will receive the benefits that they earned through their service. Marketing to veterans Finally, be smart in your marketing efforts. Demographic data will indicate years of service or branch, but behavioral data will help you get a wider view of the customer. Data such as time spent on mortgage Web sites, frequency of visits, and which Web pages were visited, leads to valuable insights. Lenders are able to collect this information from their own Web site tools, as well as access this information from data-as-a-service (DaaS) companies to unlock these insights for lenders in privacyfriendly methods. Being able to tap into actionable behavioral data will enable lenders to more appropriately provide customers with the information they are seeking, when they prefer to receive it—delivering an improved experience and a higher level of engagement. Understanding the customers’ level of intent at a given moment, and engaging with them accordingly, will impact the success of your strategy. Each customer is different and should be treated as such, especially the veteran community as we noted. If they’re early in their home purchase journey, the information they seek is different than a customer who is prepared to submit an offer on a home. Also, if you have the data available, tailor your engagements to each individual using their service details, such as branch of

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military, years actively served and rank, and make it a point to recognize their service. It may take time to set up some custom messaging, but it will have a positive impact on your ability to close more VA loans. Non-profit organizations USO: Help America’s Service Members Deployed to Disaster Zones Thousands of service men and women are currently mobilized to support the people whose lives are being affected by disasters. The USO will deploy mobile vehicles and other resources to support troops responding. Help us take care of service members on the ground by providing internet access, snacks, beverages, toiletries and other programs. Donate now. For more information, visit USO.org or call (888) 484-3876.

life. For more information, visit TeamRubiconUSA.org or call (310) 640-8787.

Todd Jones is President of BBMC Mortgage. As a former Army Captain and graduate of the United States Military Academy at West Point, Todd focuses on building an effective team, where every individual is valued yet the whole unit functions as a powerful network. Mike Eshelman is the Head of Consumer Finance at Jornaya, a data-as-a-service platform that delivers consumer journey insights to publishers, marketers, analytics, and compliance professionals with the highest-resolution view of the consumer buying journey.

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The Mission Continues One of the most cited causes for distress among discharged veterans is a lack of camaraderie. The Mission Continues looks to help veterans, first responders, and other dedicated community advocates come together. Through deployment of “platoons” in areas of need across the country, The Mission Continues is providing an outlet to build camaraderie for veterans while benefiting a common good. Donate now to help provide prominent resources for our nation’s veterans, and their communities, today. For more

Team Rubicon Through continued service, Team Rubicon seeks to provide our veterans with three things they lose after leaving the military: a purpose, gained through disaster relief; community, built by serving with others; and identity, from recognizing the impact one individual can make. Coupled with leadership development and

other opportunities, Team Rubicon looks to help veterans transition from military to civilian

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The Headstrong Project The Headstrong Project focuses on mental healthcare for military veterans, particularly post-9/11 veterans, was sorely lacking in accessibility, cost effectiveness, and stigmas associated with asking for help. The Headstrong Project partnered with Weill Cornell Medical College to tackle all three objectives. Headstrong has since grown its presence across the country. Donate now to help this non-profit organization grow and provide more veterans with healthcare free from bureaucracy, cost and stigma. For more information, visit GetHeadstrong.org.

information, visit MissionContinues.org.

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America’s Heroes Achieve the American Dream By Kelcey Brown

ilitary servicemembe rs have had to sacrifice a lot for our country. Between lengthy deployments away from home, the constant possibility of being relocated, and ultimately risking their lives for the safety of the American people. The American dream is homeownership, and our American heroes deserve the greatest benefits when it comes to taking this step. I served for six years in the U.S. Navy, and one of the most notable benefits offered to me was a VA loan. Between my experience as a veteran and the time I’ve spent working with mortgage companies at WebMax, I’ve helped several lenders in understanding the benefits of a VA loan. The VA loan exceeds the benefits of any FHA or conventional loans by far. These benefits are in place to really help veterans throughout the homebuying process, and thereafter. As a VA lender, it’s important to remember that you’re there to help serve veterans, as they have served our country. When a veteran comes to you for a loan, it’s essential to educate them on all of their options, as well as all of the benefits that come alongside a VA loan. The greatest advantage to a VA loan would have to be the downpayment, or rather the lack thereof. Active military as well as veterans require no downpayment when purchasing a home whereas conventional loans require five percent down, and FHA loans require 3.5 percent down. This means that they don’t necessarily have to worry about how much they’re saving before taking the leap. From what I’ve seen in my tenure, it seems that many servicemembers are unaware that they are not required to pay private mortgage insurance (PMI). Since PMI is usually required when the borrower doesn’t have 20-percent to put down, they assume that the same rule applies to them. That why it’s important to remind homebuyers of all the perks that come with a VA loan. If they were to choose an FHA or

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conventional loan, they would ultimately get stuck paying the PMI. The concept that most borrowers are unaware of is the second tier entitlement. It’s because of the entitlement, that a downpayment is not required. It’s imperative that you as the lender make the homebuyer aware to this advantage. It allows many veterans to purchase another home regardless of default and also gives them the ability to have a second VA loan at the same time. This is only if they can qualify with their income and credit. Servicemembers in most parts of the country have a primary entitlement of $36,000 and an additional secondary entitlement of $77,275. By combining the two, a borrower has $113,275 available for them to use. It allows homebuyers to purchase up to a $453,100 home before needing to come up with a downpayment of their own. An individual typically utilizes 25 percent of their loan amount in entitlement. In other words, they’d only be using $50,000 on a $200,000 loan, thus leaving them with a remaining $63,275. Of course, this is subject to which part of the country the homebuyer is located in. This is a great benefit especially for a family that is being relocated, and must buy a new home. Another concern many homebuyers have is how much their interest rate is going to be. As the lender, you must assure the homebuyer that they will get the best possible interest rate with a VA loan. Of course, this depends on their credit score and some other factors. VA loans in particular are guaranteed to have the lowest interest rates amongst all other loan types in order to ensure a great deal for military servicemembers. Sellers can also pay all of your loan related closing costs with a VA loan. Keep in mind, however, they dare not required to pay any at all. This decision is between the homebuyer and the seller. Remind the borrower that they are also permitted to ask the seller to pay up to four percent of concessions. You will probably

have to explain that concessions are anything of value that the seller is putting towards the home, that they will not have to pay for. For example, concessions could include appliances or furniture that are being left in the house. When I purchased my first home, I didn’t understand prepayment penalty fees. In case the veteran you are working with is unaware, remind them that they can be financially penalized for paying back a home loan early. This is so crucial to know, because while the buyer may think they’re doing good, they’re just harming themselves in the long run. This is because the lender won’t be getting as much in interest as they thought they would be. Point out that by choosing a VA loan, they get to avoid those penalties. With a VA loan, veterans are exempt from paying any prepayment penalty fee. They deserve to be rewarded for their responsibility in paying their loan back early. Not penalized. I’m sure many of us are familiar with refinancing; it’s done when a borrower is seeking a better interest rate and term. The original loan gets paid off, and then the borrower is responsible for paying the new loan. In the case of a VA loan, there are two refinance options, and most homebuyers won’t know that. The borrower may need to use this service at some point, so we have to make them aware that this service is available. Homeowners with existing VA loans are given the option to lower their monthly payment with a new interest rate, but also the individuals who already financed their property with a different loan can refinance into the VA loan program. This is a great option because then that homeowner would be eligible for all of the VA loan benefits that they weren’t otherwise receiving with their previous loan. In addition, servicemembers are sometimes eligible for an assumable mortgage, but they probably won’t be as familiar with what that is. Explain that an

assumable mortgage is when the mortgage and its terms can be transferred to another buyer, relieving the original buyer from debt. The buyer would then be left with what was remaining on the house. The new buyer wouldn’t have to worry about obtaining a loan of their own, and the original borrower would have an easy out when interest rates start to rise, or the economy goes downhill. In reality, this is a benefit towards not only the borrower but the new homebuyer as well. The VA is there for military servicemembers even when it seems like there are no other options. When times get rough, they don’t want veterans who fought hard to protect our country, to be kicked out of their home. Educate borrowers and let them know that they still have options when money is tight. The VA is staffed with individuals who are prepared to advocate on behalf of homeowners to help find alternatives to foreclosure. Explain that they will work with you as the lender to offer foreclosure avoidance options in order to keep servicemembers in their homes. After defending our country, the last thing that should happen is a veteran being thrown out on the street. These efforts are there to support our U.S. military during every step of homeownership. Overall, we know that VA loans are accompanied by a multitude of benefits, but not everyone is an expert in the mortgage industry. We must educate military borrowers so that they are aware of the benefits that are available to them, and the reasons why they should choose a VA loan. Winston S. Churchill once said, “We sleep safely at night because rough men stand ready to visit violence on those who would harm us.” Our country’s veterans have sworn to protect us, so now it’s the duty of the lender to protect them when it comes to taking out a VA loan. Make sure to explain all of the benefits that would be available to them, fulfilling your duties as they did theirs.

Kelcey Brown is Chief Strategy Officer and Executive Vice President for WebMax. Kelcey is responsible for developing, communicating, executing, and sustaining strategic initiatives. He acts as a key advisor to president on critical changes in the competitive landscape, internal employee development and the external business environment while also ensuring that appropriate metrics are in place to measure performance and progress towards strategic goals.

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A Star-Spangled Mortgage By Eric Weinstein

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

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1,000 yards off the coast of Maryland. He really didn’t expect to make much headway. In this era, England was a bit arrogant. They were the dominant military power in the world with the largest army and navy in the world. They were kind of like the United States military of their time. We were more like Uganda, a bunch of tribes, or colonies, loosely banded together under a federal government. You see, the majority of rule at that time was monarchy, and no one believed a bunch of farmers could run a country. So he rows out there and starts negotiating with the admiral in charge … and things go surprising well. They agree to swap the prisons the next day. Key can’t believe it. So, he goes down to the hold and tell the prisoners. They are chained, in cages and starving with no bathrooms and conditions were horrible. When he tells them, they go “Hazzah,” which was the “Yay!” at that time. When he comes back up, the admiral tells him, “Oh say, this is all for nothing you understand, tomorrow the prisoners were going to go back home anyway.” Key says, “Whaaaaaaaat?” The Admiral says, “Because tomorrow, the war will be over.” Key says, “Whaaaaaaaat” again and asks him to explain. The admiral says, “Look at the horizon, what do you see?” Key can see hundreds of little dots on the horizon. The admiral tells him, “Those are ships. Tonight, the entire English fleet will be here. Now look at your fort over there, with that ridiculous flag with those broad stripes and bright stars you so proudly hail. I mean … what kind of self-respecting flag has stars on it? That banner is absolutely ‘spangled’ with them. It is ridiculous looking.” Key says, “Yes, that is Fort McHenry. It is not really a military fort, it is where the men, women and children are hiding from the war.” “Yes, well …” said the admiral. “No matter. We have

he could still see. Finally, by dawn’s early light, the bombardment was over and they all waited for the smoke to clear. Somehow, some way, the flag was still there. It was in shreds, the pole was a lot shorter and it was held up at a crazy angle, but it was still there. You see, all during the perilous fight, the flag would suffer a direct hit. And brave men, free men, knowing that the flag must never touch the ground, would go out and hold up the flag manually knowing they would be killed. And when they died, another man would take his place. And another. And another. Until finally, the only thing holding up that flag was the sheer weight of the dead bodies around it. George Washington later said, “Free men would rather die on their feet, then live on their knees,” and those men died, so you and your children could live free. In 1814, Francis Scott Key penned the famous poem about what he saw. And in 1931, it was set to music, ironically, a British drinking song, and became our national anthem. I, for one, will never sing that song again without thinking of this story. I appreciate the sacrifice of those men so that all of us, and our children, and our children’s children, can live in freedom. I hope you do the same with every VA loan you do. There is more to a VA loan than just ratios and underwriting.

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lthough a VA loan is one of the best zero money loan programs out there, I can think of no other mortgage product out there where you must risk life and limb in order to qualify. Before I start, do you know what a “Spangle” is? It is a word from the 1700s and it was a derogatory term for a shiny object like buttons worn by people who were “All talk and no action.” I guess the closest word we have today is “bling.” Remember this for later. All growing up, I have heard and had to memorize “The StarSpangled Banner.” I know all the words, but I never really paid attention to what they meant. I am a bit of a history buff, so I recently read this story and I wanted to share it with you. There are very few things you hear that actually change your life. This story actually changed my life. I will never do a VA loan the same. I hope it changes yours. Francis Scott Key was a lawyer in Baltimore when the “War of 1812” broke out. What are the odds it would start in 1812? If you didn’t know, that was the war after 1776 where the British came back to reclaim America. You see, in 1776, the British had a lot of problems with their other territories and really didn’t have the time or inclination to devote a lot of attention to our little colonial uprising. But by 1812, everything for them had calmed down and they were really annoyed. It had been a big humiliation for them so they were ready to come back with a vengeance. You may remember, that was the war where they marched on Washington and actually burned down the White House. Key’s job in the military was a war negotiator. He was tasked with negotiating a prisoner exchange with the British. You see, at that time, the British would keep their prisoners of war in large warships about

given them an ultimatum. Unless they take down that stupid banner, we will bombard the Fort and wipe it off the face of the Earth. All they have to do is lower the flag and that will be the sign they will submit to British rule. No one needs to get hurt. At any time, they can lower the flag and we will stop the bombing.” So Key goes down to tell the men. And they say, “During the bombardment, you have to stay and tell us what’s going on and if they lower the flag.” So Key agrees to spend the night on the ship. And at twilight’s last gleaming, the fleet arrives and Key looks at the flag and worries what might happen. Then, all during the night, the warships opened up. Smoke filled the fort, and as the bombs and rockets burst in mid-air, they case an eerie red glare. And I during the brief flashes they could see proof that the flag was still there And the men in the hold would shout up, “Can you see what is going on? Is the flag still there? Did they take down the flag? Does it yet wave?” And all during the night, the British could see the flag too and it just infuriated them. So finally, the admiral orders every gun, on every ship to concentrate just on the flag. “One way or another, that flag is coming down,” he says. Every gun on every warship targeted the flag. And the smoke hides the flag over the ramparts, which was all

identity theft prevention

address specified by the business entity for this purpose. Intent is important in identifying and nailing the scammer, because the victim is a consumer whose means of identification or financial information has been used or transferred (or has been alleged to have been used or transferred) without the authority of that consumer, with the intent to commit, or to aid or abet, an identity theft or a similar crime. Where such identity theft has been determined, the financial institution—and any other business entity that has provided credit based on allegedly unauthorized use of the means of identification of the victim—must provide a copy of the application and business transaction records in its control,7 evidencing any transaction alleged to be a result of identity theft to:

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l The victim; l Any federal, state, or local government law enforcement agency or officer specified by the victim in such a request; and, l Any law enforcement agency investigating the identity theft and authorized by the victim to take receipt of identity theft records under this provision. There is an important caveat: the applicable rule does not permit a company to disclose information, including information to law enforcement, that it is otherwise prohibited from disclosing under any other provision of federal or state law. That being said, the law also specifically states that the privacy provisions of the GrammLeach-Bliley Act (GLBA) prohibiting the disclosure of financial information by the company to third parties cannot be used to deny disclosure of the required information to the victim. Victim requests There are three parts involved in a financial institution’s handling of a victim’s request for a report. These are basic features of identity theft prevention compliance. The three parts are the rules involving the victim’s request requirements, the response provided to the victim, and the action(s) taken by the financial institution. Firstly, telephonic requests must be avoided. The request of a victim for copies of identity-theft-related records must be in writing and be mailed to an address specified by the financial institution, if any.

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During this phase, the financial institution can ask for additional information from the consumer as part of the request. If asked, the consumer can be required to include relevant information about any transaction alleged to be a result of identity theft to facilitate providing the records including, if known by the victim (or if readily obtainable by the victim), such information as the date of the application or transaction and any other identifying information such as an account or transaction number. Secondly, when the institution does receive such a request from the consumer, it must provide the information within 30 days of receiving the request. The information must be provided free to the consumer, with no charges. However, before providing the information, the company must first verify the identity of the consumer making the request. If there is a high degree of confidence that it has satisfactorily established the identity of the victim making the request, it may then respond by providing the information. Caution in this phrase is critical! As a matter of the institution’s review process, and prior to releasing the requested information, the victim should be expected to provide proof of identity with: l The presentation of a government-issued identification card; l Personally identifying information of the same type that was provided to the company by the unauthorized person; or l Personally identifying information that the institution typically requests from new applicants or for new transactions, at the time of the victim’s request for information, including any of the above documentation. For establishing the claim of identity theft, the victim should provide: l A copy of a police report evidencing the claim of the victim of identity theft; and l A properly completed copy of a standardized affidavit of identity theft developed and made available by the Commission or an affidavit of fact that is acceptable to the business entity for that purpose.

Thirdly, the action(s) taken are the next hurdle. The institution may decide to decline providing the requested information if, in good faith, it determines that: l The FCRA does not require disclosure of the information; l After reviewing the information provided by the consumer to verify their identity, the company does not have a high degree of confidence in knowing the true identity of the individual requesting the information; l The request for the information is based on a misrepresentation of fact by the individual requesting the information relevant to the request for information; or l The information requested is Internet navigational data or similar information about a person’s visit to a Web site or online service. Blocking information There are rules involving the blocking of information involving identity theft.8 For instance, CRAs must block the reporting of any information in the file of a consumer that the consumer identifies as information which resulted from an alleged identity theft, not later than four business days after the date of receipt by the CRA of: l Appropriate proof of the identity of the consumer, l A copy of an identity theft report, l The identification of such information by the consumer, and

l A statement by the consumer that the information is not information relating to any transaction by the consumer. In our audit reviews, Lenders Compliance Group determines if the CRAs comply with applicable regulations by their prompt furnishing of appropriate information related to findings of identity theft, proper filing of an identity theft report, and whether a block has been requested and, if so, the effective dates of the block. Consumer rights Finally, I would like to call attention to the summary of rights of identity theft victims.9 The FTC, in consultation with the federal banking agencies and the National Credit Union Administration (NCUA), created a model summary of the rights of consumers that is to be provided to consumers by CRAs for remedying the effects of fraud or identity theft involving credit, an electronic fund transfer, or an account or transaction at or with a financial institution or other creditor. In addition, the FTC revised its General Summary of Consumer Rights under the FCRA because of the numerous changes to consumer rights made by the FACT Act.10 The Summary of Consumer Identity Theft Rights11 essentially highlights consumers’ rights in the FACT Act and other FCRA provisions and must be provided by CRAs to consumers who contact them claiming to be the victims of identity theft. The revised General Summary of Consumer Rights12 is required to be provided by CRAs to all consumers when they receive various disclosures from CRAs.

Footnotes 1—Such a filing often subjects the person filing the report to criminal penalties relating to the filing of false information, if, in fact, the information in the report is false. 2—12 CFR 1022.3. The Federal Trade Commission (FTC) adopted several definitions of terms that are used in a number of provisions of the FACT Act. 3—12 CFR 1022.123. See also 605A, 605B, and 609(a)(1) of the Fair Credit Report Act (FCRA). 4—Under section 605A of the FCRA, as added by section 112 of the FACT Act. 5—Idem. 6—Under section 609(e) of the FCRA, added by section 151 of the FACT Act. 7—Whether maintained by the business entity or by another person on behalf of the business entity. The basis of the allegation involves the culpability provided in inducing a financial institution or other business entity the consideration of products, goods, or services to, accepting payment from, or otherwise entering into a commercial transaction with a person who has allegedly made an unauthorized use of the victim’s identity. 8—Under section 605B of the FCRA, added by section 154 of the FACT Act. 9—Section 609(d) of the FCRA sets forth requirements for the model summary. 10—Required by section 609(c) of the FCRA. 11—See Appendix I to 12 CFR Part 1022. 12—Under the FCRA appears in Appendix K to 12 CFR Part 1022.

Jonathan Foxx, Ph.D., MBA, is Chairman and Managing Director of Lenders Compliance Group, the first and only fullservice, mortgage risk management firm in the United States, specializing exclusively in mortgage compliance, offering a suite of services in residential mortgage banking for banks and non-banks. If you would like to contact Jonathan, please e-mail Compliance@LendersComplianceGroup.com.

challenging mortgage market

candidate is available. Another option for companies that are looking to improve their hiring practices is to leverage existing industry resources, such as those offered by the MBA’s Diversity & Inclusion Center or the American Mortgage Diversity Council (AMDC). Using an external recruiter can be another useful strategy. Many have expertise at identifying a diverse pool of candidates and will work with an organization to define a strategy of recruiting professionals from varied backgrounds. For positions that are particularly difficult to fill, another option is to locate someone from a different industry who has similar experience and skills required of the position.

when the opportunity arises. Granted, it’s not the easiest road, but it can be very rewarding. If you do find yourself in the job market, seek out companies that value diversity and offer opportunities for professional growth. These organizations will be able to demonstrate that they are tracking their progress in implementing a diversity strategy and have a CEO who is actively committed to its success.

The bottom line is that a downturn in the mortgage market doesn’t need to be detrimental to diversity initiatives. By leveraging existing strategies and resources, organizations can maintain and even expand their commitments to diversity. The question shouldn’t be whether we can afford to stay focused on diversity, but whether

we can afford not to. I believe that organizations that maintain their commitment will be the ones that are better able to weather a stagnant market. By thinking outside the box and turning the never-ending stream of challenges into opportunities, any mortgage professional, regardless of background, can grow their careers.

Debora Aydelotte is Chief Operating Officer of Credit Risk Solutions, a Computershare company and a Denver-based provider of consultative residential mortgage fulfillment and due diligence services. She can be reached by e-mail at Debora.Aydelotte@Computershare.com.

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.

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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.

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What mortgage professionals can do If you’re a woman or member of any minority group looking to expand your career at a time when most companies are making cuts, the future may seem daunting. The truth is there will always be opportunities in our industry for anyone to make his or her mark and bring value to an organization. There will always be a need for problem-solvers to address inefficiencies in the mortgage process, and there are many different disciplines within the mortgage business in which a talented professional can excel. When times are good or bad, you must be committed to going the extra mile. I always advise people to learn different areas of the business than their own, because people who have knowledge of multiple disciplines are generally better problemsolvers, and more likely to be recognized and promoted. Don’t pass up an opportunity to learn more than what you already know. At all levels of our business, there are opportunities to rise to tough challenges and stand out. The leaders of our industry have always been those who seek out new experiences and knowledge, strive to think outside the box, ask why things are done a certain way and come up with solutions to market challenges. The Loan Originator who spends time and energy learning about compliance issues will always be valuable to their organization. They will also have a better chance of promotion

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Embrace the Livel Originat and Othe he embrace of automation and the emerging direct to consumer lending channel, designed to slash costs and drive efficiency, threatens the livelihood of Mortgage Brokers, Loan Originators and other mortgage partners. Increasingly, mortgage industry executives are betting that lowercost originations and fast technology can replace the experience and attention of customer service representatives, brokers and so forth. Consumers, they reason, won’t notice or care much that human interaction was distilled from the process because they get to the closing table so quickly and cost effectively. They are betting that speed and cost will drive profits more than Mortgage Brokers and Loan Officers. Their chances of winning those bets declines each time a Broker or Loan Officer, contrasts automation with personal attention, or the human touch. To remain competitive, Brokers and Loan Officers need to double down on personalized service and adopt a “bedside manner” that prioritizes the human touch when they meet with borrowers. Demonstrate the invaluable expertise, insight they deliver and benefit to consumers they provide at each step of the origination process, compared to the minimal service levels of automated platforms. It’s up to borrowers to decide, over time, if these professionals are indispensable or disposable. In addition, it doesn’t do any good to have great personal service when all your supporting players, those between you and your goals, are distant technology driven businesses. Those that flourish will establish partnerships with local providers of mortgage-related services in the market they serve, meaning team members who value the same level of service. Teamwork is a great resource for originators, real estate

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ce of Automation Threatens elihood of Brokers, ators, Mortgage Partners hers By Bryan Caffrey & Chris Roberts

emotions families feel when they purchase a mortgage, the largest transaction most will complete. Automated platforms cannot experience or express empathy, much less make a distinction between the emotions borrowers feel around a mortgage transaction from the purchase of a tee-shirt on Amazon. l A broker can distinguish a firsttime borrower, from an experienced consumer, and deliver the depth of education, handholding and support each requires. Automated platforms can’t do that well, if they can do it at all. All of which demonstrates that in lending, humanity matters. The direct to consumer channel reduces costs. But the price of automation—inconvenience, frustration, aggravation—is paid by borrowers alone. For instance, if they need a question answered, borrowers can call-in and an automated system will attempt to answer it, in general terms without nuance, impersonally and without the human touch. Answers that match a borrower’s individual situation, aren’t available. Or borrowers can search a “Frequently Asked Questions” section on a Web site for an answer. If all else fails, they resign themselves to a Google search for answers. True insight into the mortgage process is lacking, as well. For instance, tracking progress of the loan takes just a few mouse clicks, but understanding what it means that an appraisal was assigned a week ago, but has not been

completed, is left for borrowers to sort out for themselves. To combat automation, therefore, recognize the customer service void the channel creates, and contrast it with high-quality services, unmatched attention to communication and partnerships with local providers of excellent mortgage services. Automation, lenders and some AMCs have wagered, can replace the skill, experience and judgment of mortgage professionals. That remains to be seen. Americans might prefer cheap, fast food to a leisurely, expensive five course meal, but those preferences don’t necessarily hold true for most mortgage borrowers. For instance, Millennials, the most technologically-savvy generation, want to apply online for a mortgage—but the majority want their second contact from the lender to be a call or an appointment with a knowledgeable professional. There is little question that the automated origination trend is consistent with a cultural phenomenon that favors speed, and low prices, to the virtual exclusion of everything else— even when it’s not in the best interest of the consumer. When mortgage professionals focus on excellent communication, customer service, and create strong partnerships between lenders and local service providers, they are a formidable force that can meet the challenge technology poses. But if they don’t, the mortgage business will feel like a Ferrari that’s pulling a tractor trailer.

Bryan Caffrey is Chief Executive Officer of Arivs, a national appraisal management company with local branches strategically located in 20-plus mortgage markets across the U.S. Bryan may be reached by e-mail at Bryan@Arivs.com. Chris Roberts is the National Sales and Support Director for Arivs. Chris implemented the company’s national-local strategy, recruited and trained staff for local offices and expanded the services the company offers. Chris may be reached by e-mail at Chris@Arivs.com.

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involvement with consumers or business partners. They are laying a path that leads to direct to consumer lending, which is optimally efficient but does not include Brokers, Loan Officers and other professionals. The direct to consumer channel manufactures mortgages in an assembly-line style. It isn’t designed to build loyalty, relationships, confidence or trust; nor, does it educate borrowers on the loan they bought and the mortgage process. Low-service levels are acceptable to them as long as costs are low, turn times are short, and they can close more loans for less money. However, the mortgage origination process is complicated, confusing, and for many borrowers scary because—whether they get their home—depends on a successful outcome. Brokers, appraisers, and other professionals provide the communication, support and education consumers need to understand their loan, as well as the mortgage process. In the absence of professionals to ask questions of, a communication vacuum exists, opening the door to brokers, appraisers and others to capitalize on. To see why, compare the role Brokers play in the mortgage transaction to automated platforms … l Brokers can provide valuable individualized education, customer service and handholding to borrowers that enhance the origination process. Automated platforms offer a pre-programmed, onesize-fits-all solution that’s designed to slash costs, and in the process, diminishes the experience for the borrower. l Brokers can answer questions and explain the mortgage business to borrowers in a patient manner. Automated platforms offer an automated, impersonal platform, devoted to speed and cost savings, not borrowers. l Brokers can express an understanding of the daunting

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professionals, title companies and AMC partnerships, and is a key to competing and beating back the threat from technology. The interaction among partners will work like a restaurant that sources ingredients from local farmers and knows the best source for the type of beef or vegetable a recipe calls for. Likewise, each file will be assigned to the partner with the best track record for a property type and market. The combination of the personal touch, with a tight network of best performing, committed partners will increase service levels and be competitive with automated platforms. Without question, the focus on borrowers is in sharp contrast to consumer direct platforms. For decades, automation has increased efficiency, but it usually was deployed to support core origination processes, not replaced them. An equilibrium had existed between the needs for human interaction to support borrowers, and technology to drive efficiency gains between the needs of borrowers and the goals of lenders. That balance was interrupted, however, when the financial and business climate forced a shift in the way technology was viewed and deployed. Lenders were feeling a cash pinch from origination costs that have increased to more than $8,000 per loan, and suffocated profitability. Already choking on those costs, they also had to contend with a precipitous decline in origination volume, rate increases and the emergence of the purchase market. Automation was, from their perspective, the most direct line to fatter profits for them, because it eliminated the expense of customer service representatives, Brokers, Loan Originators and others. And the result was an extremely profitable channel. Likewise, some of the largest national AMCs and other service providers have embraced automation seeking the efficiency, tighter margins, and less

Whatâ&#x20AC;&#x2122;s Past Is Prologue Applying lessons from the financial crisis to the future of eMortgage and eNote litigation By Laura Baucus & Robert Hugh Ellis

n the fallout from the 2008 financial crisis, courts across the United States were inundated with litigation challenging the legitimacy of mortgages, notes and the records purporting the transfer or assign them. Such claims included asserting that endorsements of promissory notes were not enforceable, claiming assignments of mortgages were executed without authority, and allegations that the note, mortgage, or associated disclosure documents were neither presented to nor signed by the borrowers. In recent years, as the economy appears to have improved, much of this litigation has died down. However, it does not take much imagination to assume that if and when the next economic downturn hits, some borrowers may again find themselves in default on their mortgage obligations, and in turn may seek to challenge the enforceability of those agreements. As eMortgages and eNotes continue to gain traction across the U.S. as an acceptable format for originating mortgage loans, lingering in the background is the issue of how these records might be treated by the courts in the event a borrower eventually attempts to challenge them in court. Given that challenging the enforceability of mortgage loan records was a common tactic in the years following 2008, it stands to reason that the increased use of eMortgages and eNotes will generate a fresh set of challenges to be employed by borrowers in default in order to attempt to avoid their obligations. As such, lenders, servicers, and investors seeking to originate, acquire or service eMortgages and eNotes should be mindful of how these records could be treated by the courts, and should implement systems, processes and procedures now to insure they will have the necessary evidentiary record in place should such litigation come in the future.

UETA, E-Sign, and establishing the validity of electronic signatures The implementation of eMortgages and eNotes is made possible in part by a series of laws concerning the use of electronic signatures. The two primary sources of authority are the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. ch. 96 (â&#x20AC;&#x153;E-SIGNâ&#x20AC;?), along with various state adaptations and permutations of the Uniform Electronic Transactions Act (UETA). In very broad terms, these two statutory schemes provide, subject to certain exclusions, that records and signatures may not be denied legal effect, validity, or enforceability solely because they are in an electronic form or because an electronic signature or electronic record is used in their formation. Additionally, E-SIGN and UETA permit the electronic transfer of certain payment instruments, such as promissory notes, without traditional requirements such as an original paper copy continuing original signatures and endorsements. All states except for Illinois, New York and Washington have adopted UETA, but each of those three states has its own laws recognizing electronic signatures. Those courts applying E-SIGN and UETA generally have interpreted the statutes broadly to hold that these statutes permit electronic signatures to be satisfactory in any scenario that traditionally required an original signature. For

example, Barwick v. Gov’t Em. Ins. Co., 2011 Ark 128 (Ark. 2011) concerned the electronic rejection of medical coverage in an insurance context, which under Arkansas law needs to be specifically rejected in writing. The court, however, held that an electronic signature satisfied this requirement, noting “In our view, the meaning of [the UETA] could not be more straightforward when it states that ‘[i]f a law requires a record to be in writing, an electronic record satisfies the law.” The primary issue is determining what is required to establish that the e-signature itself is genuine. Put another way, one must consider what safeguards need to be in place at the time of the e-signing, in order to effectively defend against a future challenge by a borrower who might seek to avoid the agreements in litigation on the basis that he or she purportedly was not the person who e-signed the operative documents. The answer, in simple terms, is “process.” The lender must have a process and safeguards in place to establish that the electronic document is genuine and has not been altered. Some of the best processes ensure that the borrower consents to an electronic transaction, that the eNote signed at closing is digitally tamper sealed immediately post execution, and that a complete digital audit is saved related to the electronic transaction. A failure to illustrate adequate processes could result in an unenforceable agreement. This concept is nicely illustrated by two UETA cases out of California concerning employee arbitration agreements. In Ruiz v. Moss Bros. Auto Grp., Inc., 181 Cal Rptr. 3d 781 (Cal. Ct. App. 2014), the court refused to enforce an electronically signed employee arbitration agreement because there was insufficient evidence that this particular person actually signed the agreement. There was evidence of a common practice (such that all employees had to esign such an agreement), and there were records showing that the electronic system was accessed and the electronic document was e-signed, but there was insufficient evidence to establish that the plaintiff was the person who did the e-signing. Missing, for example, was any evidence of security protocol, such as unique username and password combination, or evidence that only a person with the password could have e-signed

the document. Conversely, in Espejo v. S. Cal. Permanente Med. Grp., 201 Cal. Rptr. 3d 318 (Cal Ct. App. 2016), the court enforced a similarly e-signed employee arbitration agreement. Unlike Ruiz, here there was ample evidence of process. The employee had received a link that could only be accessed by username and password combination. Once that was provided, the plaintiff had to change the password. This type of process evidence helped establish that the plaintiff was the individual who had actually electronically signed the arbitration agreement. Enforcing the eNote Whether the original e-signature itself is enforceable is not where the analysis ends, however, because the vast majority of mortgage loans do not remain with the originating lender. The issue then becomes how to authenticate and establish that the current owner of the eNote is entitled to enforce the document when the underlying records are electronic and there are no original ink signatures or paper endorsements to rely upon. The answer, once again, appears to be “process.” By way of background, proving the right to enforce a paper note turns on physical delivery, possession and endorsement. However, with an eNote, lenders and servicers (including subsequent holders) need to prove that they are in control of the authoritative copy of the transferable record and related business records. For example, courts in UETA states have applied their respective state versions of UETA to permit subsequent holders to enforce electronically executed and delivered notes without normal UCC requirements such as physical delivery, possession, or endorsement. In Rivera v. Wells Fargo Bank, N.A., 189 So.3d 323 (Fla. Dist. Ct. App. 2016) an electronic signature on a promissory note was held to be enforceable under UETA in a real property foreclosure action. Similarly, in N.Y. Comm’ty Bank v. McClendon, 29 N.Y.S.3d 507 (N.Y. App. Div. 2016), the court applied E-SIGN and held that an electronically signed promissory note was enforceable. Specifically, in both the Rivera and McClendon cases, the borrowers challenged the electronic chain of title and custody of the eNotes. In McClendon, the court applied ESIGN and found that “[d]elivery, possession, and endorsement are not required to obtain or exercise

any of the rights” of a holder of an electronic note.” Instead, the holder needed only to provide “reasonable proof that the person is in control of the transferable record,” which “may include access to the authoritative copy of the transferable record and related business records sufficient to review the terms of the transferable record and to establish the identity of the person having control of the transferable record.” The court found that the associated “eNote transfer history” was such a “transferrable record” and that the current holder had established ownership. Similarly, in Rivera, the court held that Fannie Mae’s system established that there was a single, authoritative copy of the note that was unalterable. Specifically, “[a]ccording to the bank’s evidence, the bank’s system stored the eNote in such a manner that a single authoritative copy of the eNote exists which is unique, identifiable, and unalterable. That authoritative copy, introduced into evidence by the bank as Fannie Mae’s designated custodian, identified Fannie Mae as the entity to which the transferable record was most recently transferred.” The court thus held that delivery, possession and endorsement of a physical note were not required. Finally, in Wells Fargo Bank, NA v. Benitez, No. 15433, 2017 N.Y. Misc. LEXIS 5192, 2017 NY Slip Op 32747(U), ¶ 5, the court held that the plaintiff had sufficiently established standing to enforce an eNote, focusing on plaintiff’s control over a single authoritative copy of the eNote. “Plaintiff has established its standing with the submission of the affidavits … establish[ing] plaintiff’s standing as the controller of the eNote, since Wells Fargo maintains the single authoritative copy of the eNote and is entitled to enforce same.” A failure to establish a process demonstrating the ownership history and the existence of an authoritative copy can lead to evidentiary issues, and the potential that the court may deem the transfers unenforceable. For example, in Good v. Wells Fargo

Bank N.A., 18 N.E.3d 618 (Ind. Ct. App. 2014), the court set aside an order granting summary judgment because it found that the lender had provided insufficient evidence to show it was the true owner of the note. The lender had provided an affidavit concerning the possession of certain records, but nothing illustrating that it had control of the interest in the note itself. As explained by the Court, “Wells Fargo did not provide any evidence documenting the transfer or assignment of the Note[.] Thus, Wells Fargo did not demonstrate it controlled the Note by showing that a system employed for evidencing the transfer of interests in the Note reliably established that the Note had been transferred to Wells Fargo.” The enforcement of eMortgages is a state-specific issue, and generally turns on whether the state permits remote electronic notarization and electronic signatures on recordable instruments. The use of eMortgages is further impacted by whether the specific local jurisdiction permits the electronic recording of documents. Measures to avoid enforcement issues While the specter of future litigation is never a pleasant consideration, those businesses seeking to utilize eMortgages and eNotes have to assume that somewhere down the line they will be faced with certain borrowers who seek to avoid their obligations by challenging the legitimacy of the e-signatures or the veracity and enforceable of electronic transfers of the ownership interest in the notes and mortgages. In order to avoid spending countless hours and incurring significant legal fees in future disputes on such evidentiary issues, companies looking to get into the eMortgage and eNote business should focus now on making certain they have the processes in place to create and retain the evidence they will need to quickly and efficiently resolve such issues if and when the next wave of litigation begins.

Laura Baucus is Dykema’s Financial Services Litigation Practice Group Leader and the Immediate Past Office Managing Member of the firm’s Bloomfield Hills, Mich. 70-plus attorney office. She may be reached by phone at (248) 2030796 or e-mail LBaucus@Dykema.com. Robert Hugh Ellis is a member in Dykema’s Litigation Group. His practice focuses on business and commercial litigation in the areas of contract disputes, privately-held businesses, insurance litigation, financial services litigation, residential and commercial real estate. He may be reached by phone at (313) 568-6723 or email REllis@Dykema.com.

How to Expand Your M Business Across State L eing a Mortgage Broker comes with many opportunities to help individuals and families make their dream of becoming a homeowner or upgrading to a new home a reality. Most Mortgage Brokers recognize the need to grow their business and customer base through asking for referrals, connecting to other professionals through networking groups, and marketing via many different channels. But there is another way to pave the way for a growing brokerage businessâ&#x20AC;&#x201C; expanding into another state. While offering your broker services in a new location across state lines may seem as simple as spreading the word about your presence, that is far from the truth. Becoming as successful in a new state requires some knowhow and advanced planning. Here are the most important things you need to know if you are planning to expand your business across state lines.

Understanding licensing requirements The very first step in devising a plan for expansion of your mortgage broker business is getting to know the licensing requirements. This not only pertains to the current state in which you work, but it extends to any new state you are considering opening up shop. Every person working as a Mortgage Broker, and every company operating as a brokerage agency must be licensed to work in the field based on state requirements. Because these criteria differ from state to state, you must know what is legally required of you and your business before offering your services across state lines. You can often find your stateâ&#x20AC;&#x2122;s requirements to be a licensed Mortgage Broker through the NMLS database, but this process is not always straightforward. In some cases, reaching out to your

surety bond agency may prove beneficial. This is because they can provide detailed information as to what steps to take to ensure your licensing is correct in the new state, as well as the current. It is common for state licensing requirements to be similar, typically including taking an exam and paying a licensing fee. A Mortgage Broker bond is also part of the requirements list, so be sure to know these specifics before opening in a new state. Selecting a surety agency Because nearly all states require you to have a surety bond in place, selecting the best-fit surety company to help with this need is crucial to expanding your business. If youâ&#x20AC;&#x2122;re already working with a surety company that understands your business needs and provides options for bonds from different sources, you simply need to speak with them about bond requirements for your new state operations. If you are not happy with your current surety agency, or they do not offer a bond for the state you wish to expand to, think about making a change. Your surety

company should have the resources and understanding of the Mortgage Broker business to get you the best possible bond for your circumstances. Having a surety bond is place is an essential component of operating a sound, legal business, so be sure to weigh your options when the time comes. Being prepared for the cost One of the advantages of having A Mortgage Broker business is the relatively low cost required to get operations up and running. However, there are still expenses to plan for when expanding across state lines. First, each state charges a license fee, required as part of the licensing process. Also, a broker bond is necessary to stay in line with state regulations. While there is no wiggle room on state licensing fees, you can effectively manage the cost of your bond. Having a strong financial track record, a high credit score, and minimal credit blunders in the past will help you get the most

affordable bond. This is because a surety bond is a form of credit extended to you as a business owner. When financial mishaps have taken place, you are seen as a higher risk to surety companies. This risk is offset with a higher price for your bond. The good news is that Mortgage Brokers only pay a percentage of the total bond amount required. The stronger the financial history, the lower that percentage will be. There may also be costs required for establishing a presence in the new state. These expenses could include office space, advertising and marketing campaigns, and new networking or referral groups to help build a customer base. The expenses associated with expanding a Mortgage Broker business vary greatly, but taking some time to calculate a rough estimate before expanding is helpful. Have a plan for covering these costs, as well as fulfilling obligations for licensing and bonding if success if the goal with expansion across state lines.

Eric Weisbrot is the Chief Marketing Officer of JW Surety Bonds. He may be reached by phone at (888) 592-6631 or e-mail Info@JWSuretyBonds.com.

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calendar of events NOVEMBER 2018 Tuesday-Wednesday, November 27-28 MBA’s Summit On Diversity and Inclusion Capital Hilton 1001 16th Street NW Washington, D.C. For more information, visit MBA.org.

Monday-Thursday, February 25-28 Wednesday-Saturday, February 6-9 2019 NAMB Focus: Technology Conference & Trade Show Innisbrook Golf & Spa Resort 36750 U.S. Highway 19 N Tampa, Fla. For more information, visit NAMB.org.

JANUARY 2019 Monday-Thursday, January 28-31 MBA’s Independent Mortgage Bankers Conference 2019 Hyatt Regency San Francisco 5 Embarcadero Center San Francisco, Calif. For more information, visit MBA.org.

MARCH 2019 Sunday-Wednesday, March 10-13 MBA’s Mid-Winter Housing Finance Conference 2019 Ritz-Carlton, Bachelor Gulch 0130 Daybreak Ridge Avon, Colo. For more information, visit MBA.org.

FEBRUARY 2019 Sunday-Wednesday, February 10-13 MBA’s CREF/Multifamily Housing Convention & Expo 2019 Manchester Grand Hyatt San Diego 1 Market Place San Diego, Calif. For more information, visit MBA.org.

Sunday-Wednesday, March 24-27 MBA’s Technology Solutions Conference & Expo 2019 Hyatt Regency Dallas 300 Reunion Blvd E Dallas For more information, visit MBA.org.

Wednesday-Saturday, April 10-13 NAMMBA Connect 2019 The Westin Buckhead Atlanta 3391 Peachtree Road NE Atlanta For more information, visit NAMBA.org. MAY 2019 Saturday-Tuesday, May 4-7 NAMB 2019 Legislative & Conference Liaison Capitol Hill Hotel 415 New Jersey Avenue NW Washington, D.C. For more information, visit NAMB.org. Wednesday-Saturday, May 15-18 NAPMW 2019 Annual Education Conference “Jazzin’ Up Mortgage in the Big Easy” Hotel Monteleone 214 Royal Street New Orleans For more information, visit NAPMW.org.

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

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MBA’s National Mortgage Servicing Conference & Expo 2019 Hyatt Regency Orlando 9801 International Drive Orlando, Fla. For more information, visit MBA.org.

SEPTEMBER 2019 Saturday-Monday, September 14-16 NAMB National 2019 Conference & Trade Show Caesar’s Palace 3570 South Las Vegas Boulevard Las Vegas For more information, visit NAMB.org.

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

MARKETING

RECRUITMENT

WHOLESALE LENDERS

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

PRIVATE FINANCING

WHOLESALE/CORRESPONDENT LENDERS

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Greenbox Loans, Inc 3250 Wilshire Blvd., Suite 1900 Los Angeles, CA, 90010 (800) 600-9198 www.greenboxloans.com Greenbox Loans, Inc. is a proven leader in the Non-QM & Non-Prime lending environment offering bank statement programs, foreign national lending solutions, along with programs allowing for recent short sale, foreclosure, bankruptcy for borrowers as low as 500 Fico Score. Greenbox Loans, Inc. is a national lender offering its programs through a multiple of channels including Retail, Wholesale, and Investor Specialty division.

WHOLESALE LENDERS

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

NMP Media Corp. 1220 Wantagh Avenue Wantagh, New York 11793-2202 p 516.409.5555 f 516.409.4600 e advertise@MortgageNewsNetwork.com w www.NationalMortgageProfessional.com

n National Mortgage Professional Magazine n NOVEMBER 2018

PUBLICATIONS

YOU BELONG HERE.

ENGAGE YOUR AUDIENCE In-house production studio and team

MANAGE YOUR PIPELINE GoGo LO mobile app

BUILD YOUR REPUTATION Automatic posting of your positive online reviews

GROW YOUR PARTNERSHIPS Co-branded marketing with your real estate partners

CATER YOUR MARKETING In-house print room and marketing material library

EXPAND YOUR REACH Award-winning marketing team that works for YOU

WE PROVIDE THE TOOLS. YOU BUILD YOUR FUTUR E .

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Contact Baron Oâ&#x20AC;&#x2122;Brien VP of Talent Acquisition - Retail 888.978.8608

WE’RE GROWING! Apply Now At JoinAngelOak.com

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