National Mortgage Professional Magazine October 2019 by ambizmedia

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n National Mortgage Professional Magazine n OCTOBER 2019

weâ&#x20AC;&#x2122;re serious about reliability

table of

N A T I O N A L

NMP’s 2019 Mortgage Professional of the Year: Barry Habib … Seeing Opportunity Everywhere By Rick Grant

O C T O B E R

34 National Mortgage Professional Magazine Presents … Mortgage Banking’s Most Powerful Women 2019

40 National Mortgage Professional Magazine Presents ... Mortgage Banking’s Most Powerful Women Roundtable Discussion

2 0 1 9

M O R T G

V O L U

A SPECIAL FOCUS ON “THE FUTURE OF MORTGAGE BANKING”

Remaining Ahead of the Technology Curve and the Future of Mortgage Banking By Rick Arvielo ..........................................................64

The Future of Lending Is Scalability: How Prepared Are You? By Greg Holmes & Julie Piepho ................................................................68

R M

Beyond Data: Improving Relationships and Profitability Through Borrower Intelligence By Alex Kutsishin..................................70

The Mortgage Industry: Collaboration is the Key to Transformation By Patrick Stone ........................................................................................72

Millennial Homebuyers: A Parent’s Perspective By Ed Adams ............74

Create an Unfair Competitive Advantage for Your Mortgage Company By Bob Brandt ..........................................................................76

Powering Up the Turbo Mortgage By Joe Langner ..............................78 Automating Regulatory Change: Tips for Increasing Your Financial Institution’s Success By Elaine F. Duffus ..............................80

T L

Best Practices for Mastering the Promise and Pitfalls of Digital Mortgage Technology By Eric Bingen ........................................82 Selling to Millennials Through Niche Products By Jim Loving ............84

A C

How Independent Lenders Can Increase Homeownership and Better Serve the Borrowers of Tomorrow By David Battany ........86

A a

Finding Your Place in a Changing Field By Andrea Lefebvre................88

Four Tips for Staying Ahead of the Technology Curve By Tedd Smith ..........................................................................................90

If You’re Not Ahead, You’re Behind By Matt Tully ................................92

M C

Growing Influence of Artificial Intelligence and Automation in Mortgage Processes and Lending By Vladamir Kovacevic ..............93

48 NMP’s Mortgage Professional of the Month: Robert Senko, President, ACC Mortgage By Phil Hall

V I S I T Company

Web Site

O U R

A D Page

ACC Mortgage .................................................. weapproveloans.com ......................................................9 Arc Home Loans ................................................ archomeloans.com ....................................................52-53 Angel Oak Mortgage Solutions ............................ angeloakms.com ..............................................Back Cover Brokers Compliance Group.................................. brokerscompliancegroup.com ........................................104 Capital One ........................................................capitalone/financialinstitutions ..........................................11 Carrington Mortgage Services, LLC ...................... carringtonally.com ..................................................1 & 79 Citadel Servicing Corporation .............................. citadelservicing.com ......................................................17 Concord Church Finance .................................... concordchurchfinance.com ............................................97 Deephaven Mortgage, LLC .................................. deephavenmortgage.com ..............................................85

50 NMP’s Legends of Lending: Quicken Loans Mortgage Services By Rick Grant

DocMagic .......................................................... docmagic.com ................................................................7 First National Bank of America............................ fnba.com/mortgagebrokers ............................................67 Flagstar Bank .................................................... flagstar.com/why ..........................................................71 Genworth Mortgage Insurance Corporation .......... pages.genworth.com/you ................................................5 Greenbox Loans, Inc........................................... greenboxloans.com ................................Inside Front Cover Locke Law US, LLC ............................................ lockelaw.us ..................................................................81 Lykken On Lending ............................................ lykkenonlending.com ....................................................93

MBS Highway .................................................... mbshighway.com/MNN ..................................................33

of contents

R T G A G E

L U M E

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

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N U M B E R

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FEATURES

ARMCP Readies New Web Site ................................................................6

A Roadmap to Ideal Non-QM Closings By Tom Hutchens......................8 The Elite Performer: Don’t Fall Into the Fourth Quarter By Andy W. Harris, CRMS ..........................................................................8 Recruiting, Training and Mentoring Corner: The Future of Mortgage Services By Dave Hershman ..................................................10 Treasury Department Releases Housing Reform Plan By Gavin T. Ales ........................................................................................16 Mail Beats Digital … Again By K. Justin Restaino ..................................18 NAMB Perspective ..................................................................................20 Don’t Let Market Amnesia Wipe Out Your Pipeline By Ken Bartz ......28 The Beckwith Blog: The Undeniable Discovered Path to Success By Christine Beckwith ................................................................................30 Compliance Matters: Social Media Challenges By Jonathan Foxx......44 The Shred Marketer: Building Awareness on Facebook for Less Than $2 a Day By Jason Frazier......................................................46 A Message From NAMMBA Founder & CEO J. Tony Thompson III, CMB: The Mortgage Market Is Shifting: Why You Should Adapt........54 A Plan to Make Homeownership an Option for Every Client an MLO Connects With By Pam Marron ................................................56 BrokerNATION: Matthew Cole/United Wholesale Lending By Andy W. Harris, CRMS ........................................................................60 Five Secrets to Finding Great Mortgage Leads By Kim Gates ............62 MBA’s Mortgage Action Alliance: A Message From MAA Chairman Jeffrey C. Taylor ....................................................................99

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

Web Site

Page

Mortgage News Network (MNN) .......................... mortgagenewsnetwork.com ....................................94 & 95 NAMB+ ............................................................ nambplus.com ..............................................................19 NAMMBA .......................................................... nammbaconnect.org ......................................................91 NAWRB ............................................................ nawrb.com ....................................................................15 NRMLA.............................................................. nrmlaonline.org ............................................................87

are you nominated?

Origination Pro.................................................. originationpro.com ........................................................83 Paramount Residential Mortgage Group, Inc. ...... prmg.net ................................................Inside Back Cover PB Financial Group Corp. .................................. calhardmoney.com ........................................................87 RCN Capital ...................................................... rcncapital.com ..............................................................81 Redstone Print & Mail Inc. ................................ redstoneprintmail.com ..................................................73 REMN................................................................ remnwholesale.com ......................................................13 Ridgewood Savings Bank .................................... ridgewoodbank.com ......................................................69 Sharestates, LLC ................................................ sharestates.com ............................................................77 Sierra Pacific Mortgage ...................................... sierrapacificmortgage.com ............................................55

We are seeking nominations from our readers for National Mortgage Professional Magazine's "40 Under 40" feature, slated to appear in our December 2019 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.

Susan G. Komen San Diego.................................. komensandiego.org ......................................................79 TCF Financial Corporation .................................. tcfbank.com/brokerloans/compensation ..................61 & 75

To nominate yourself or someone else, visit

Velocity Mortgage Capital .................................. velocitymortgage.com/win ..............................................45

https://nationalmortgageprofessional.com/under-2019

FROM THE PUBLISHER’S DESK OCTOBER 2019 Volume 11 • Number 10 1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com

STAFF Joel M. Berman Publisher - CEO (516) 409-5555, ext. 310 joel@mortgagenewsnetwork.com Eric C. Peck Editor-in-Chief (516) 409-5555, ext. 312 ericp@mortgagenewsnetwork.com Joey Arendt Art Director (516) 409-5555, ext. 323 joeya@mortgagenewsnetwork.com Phil Hall Managing Editor (516) 409-5555, ext. 312 philh@mortgagenewsnetwork.com Rick Grant Special Reports Editor (570) 497-1026 (direct) (516) 409-555, ext. 311 rickg@mortgagenewsnetwork.com Beverly Bolnick VP-Sales & Marketing (516) 409-5555, ext. 316 beverlyb@mortgagenewsnetwork.com Scott Koondel VP of Operations (516) 409-5555, ext. 324 scottk@mortgagenewsnetwork.com Francine Miller Advertising Coordinator (516) 409-5555, ext. 301 francinem@mortgagenewsnetwork.com

Advertising To receive any information regarding advertising rates, deadlines and requirements, please contact VP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail beverlyb@mortgagenewsnetwork.com.

Article submissions/press releases To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or e-mail ericp@mortgagenewsnetwork.com. The deadline for submissions is the first of the month prior to the target issue.

Subscriptions To receive subscription information, please call (516) 4095555, 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, ARMCP 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, ARMCP 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.

Gazing into the future of mortgage banking It’s October again … falling leaves, pumpkin spice in our coffee and the beginning of the fourth quarter. Of course, for many large financial services firms, including the federal government, this is the beginning of the new fiscal year. That makes it the perfect time to look ahead at what we expect to happen next. That’s what our annual “Future of Mortgage Banking” issue is really all about. We’ve assembled our special section authors and asked them all the same question: What will our industry face in the days ahead. I’m very pleased with the responses we received and am proud to bring them to you in this issue. You will find 15 unique articles in this month’s special section, all working to answer that question. You’ll find prognostication on everything from selling to the Millennial market, digital mortgage technology, artificial intelligence, and staying ahead of the technological curve. We hope they inspire you to look into your own crystal ball and formulate your own plans for success in 2020. Many of you will be reading these articles in Austin later this month at the Mortgage Bankers Association’s Annual Convention & Expo. We always make sure to have plenty of issues available for this important show. This is one of the most important business conferences of the year for our industry—if not THE biggest. We’ll be on hand, of course, with our video gear. Drop by the NMP/Mortgage News Network booth and let us know what you see coming next year and what your company is planning to do to serve more homebuyers in 2020. I doubt we’ll meet anyone at any of the fall conferences who does a better job of seeing into the future than the subject of this month’s special feature: The Mortgage Professional of the Year. This is only the second year we’ve chosen a single person to represent the pinnacle of our industry and Barry Habib is perfectly suited to the position. Barry sat down with Rick Grant and told him a story that many may find hard to believe. Can a personality as large as Barry Habib come from such humble beginnings? Read the article to find out and learn more about how he has become so good at envisioning what’s coming next. One thing I think everyone agrees is coming next to our industry will be a more powerful cadre of female mortgage executives. It’s long past time. In this issue, we bring you the 2019 version of Mortgage Banking’s Most Powerful Women.” There are 30 honorees in this year’s class, and I’m very pleased that we had so many strong candidates for recognition this year. I wish that we could bring you all of them. Instead, we made our choices based on their individual accomplishments and focused on those who were instrumental to a major industry innovation. We also factored in the number of social media followers they had and gave special consideration to anyone who had to overcome seemingly insurmountable obstacles in order to rise to the top. I think you’ll agree that the women in this issue are beyond fantastic. We also highlight a couple of excellent industry players in this issue. First, our October Legends of Lending recipient is Quicken Loans Mortgage Services (QLMS), the wholesale arm of Quicken Loans. We visited with Austin Niemiec, executive vice president at QLMS, to get some history on this powerful player and some advice for front line loan originators. The second is our October Mortgage Professional of the Month, Robert Senko, president of ACC Mortgage. Phil Hall had a chance to chat with Robert to get his views on the industry, from his beginnings to establishing ACC Mortgage. As always, you’ll find all of the great trade group news, compliance information and motivational material you need to stay at the top of your game. We hope this issue provides with material that will challenge your thinking, motivate you to make bigger plans and give you the information you need to take your business to the next level. The year 2020 is only a couple of months away, now. What will happen next year is anyone’s guess, but what happens to your business and your career is largely up to you. All of us at National Mortgage Professional Magazine wish you all the best and hope to see you at one of the upcoming fall conferences. Sincerely,

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

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n National Mortgage Professional Magazine n OCTOBER 2019

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 2 0 1 9 - 2 0 2 0

O F F I C E R S

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

Kimber White, CRMS President-Elect Kimber.White@NAMB.org

Linda McCoy, CRMS Vice President Linda.McCoy@NAMB.org

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

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

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

Valerie Saunders, CRMS Executive Director ValSaun@NAMB.org

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

D I R E C T O R S

Dawn Cychner Dawn.Cychner@NAMB.org

Michael DeSantis Mike.DeSantis@NAMB.org

Ernest Jones Jr. Ernest.Jones@NAMB.org

Paul Marsh, CMC, CRMS Paul.Marsh@NAMB.org

Matt Oliver, CRMS Matt.Oliver@NAMB.org

Marty Pfeiffenberger, CRMS MartyP@NAMB.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

2019-2020 BOARD OF DIRECTORS

OCTOBER 2019 n National Mortgage Professional Magazine n

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

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

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

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

Debbie Loyning Treasurer (425) 264-1024 Debbie@Alliance2020.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

Julie Wink Director (901) 259-5105 Julie@DataFacts.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 Readies New Web Site The Association of Residential Mortgage Compliance Professionals (ARMCP) has announced the launch of its new Web site, ARMCP.org, a state-of-the-art platform designed specifically to fulfill the needs of residential mortgage compliance professionals. The site design is built around a dynamic hub that provides a meeting place for all ARMCP member interactions. The entire Web site platform has taken many years to resource, design and program. “If you want to join ARMCP via LinkedIn, please contact me at Info@ARMCP.org and I will send you an invitation,” said Jonathan Foxx, Ph.D., MBA, founder and president of ARMCP. “There are now 1,600 members on LinkedIn who have the opportunity to move to our new Web site!” ARMCP is the first and only independent, national organization in the United States devoted exclusively to residential mortgage compliance professionals. ARMCP is a non-profit association, owned and managed by its members, and not dependent on any profit-based enterprises. For more information, e-mail Info@ARMCP.org or visit ARMCP.org.

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n National Mortgage Professional Magazine n OCTOBER 2019

A Roadmap to Ideal Non-QM Closings By Tom Hutchens

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he best way to steer a non-QM loan from application to closing is to work with a lender who provides a clearly defined road map, along with resources that support your work every step of the way.

Non-QM loan products are more diverse than agency loans. They offer options for various borrower situations. For loan officers to enjoy the higher profits and customer satisfaction that non-QM closings deliver, it is important that your preferred lenders provide both technological resources and high-touch personal service. The all-important road map to the closing should be outlined and followed as soon as the lender delivers a prequalification approval. All three parties–the borrower, originator and lender–must understand and agree upon every milestone on the road map. The key to smoothly closing on schedule and avoiding snafus is the lender’s desire and ability to work closely with the loan officer to address questions, concerns and unforeseen circumstances. Only the lender can provide both the infrastructure and personnel that the originator needs to avoid oversights and wasted time. Because non-QM loans can require income and debt documentation that varies widely, advanced technology by itself is not enough to assure desired outcomes are realized. For example, at Angel Oak Mortgage Solutions our latest processing application, QuickQual, delivers an automated, detailed prequalification report to the loan officer within minutes of receiving an application. That prequalification report is the road map that specifies what assets and documentation is needed and when they must be delivered. But a prequalification document alone is not good enough. I have said many times that just about every non-QM loan approval involves personal situations and circumstances that call for strong relationships between the lender and loan officer. That is why it is vital to partner with top-notch nonQM lenders who invest in maintaining a deep staff of experts to collaborate with originators on moving their loans through to closing. Technology alone cannot provide the support loan officers need to prepare diverse documentation and respond to borrower questions. That’s why Angel Oak has more than 100 wholesale account executives combined with the most advanced technology in the non-QM marketplace. When you establish a road map to the closing immediately after submitting each application, you and your client will understand why a particular non-QM loan product is best in that situation and how to smoothly manage the process. For details on the best non-QM tools and resources, contact your Angel Oak account executive at (866) 837-6312 or visit https://AngelOakMS.com/MAP.

Tom Hutchens is executive vice president, production at Angel Oak Mortgage Solutions, an Atlanta-based wholesale and correspondent lender licensed in more than 40 states and operating in the non-QM space for over five years. Tom has been in the real estate lending business for nearly 20 years. He may be reached by phone at (855) 539-4910 or e-mail Info@AngelOakMS.com.

SPONSORED EDITORIAL

NMP NEWS FLASH continued from page 16

for people who don’t have equity built up to trade in for a new home. And those who are waiting in the wings, hoping to buy a home when the next recession hits, probably won’t be as lucky as buyers were in 2012. Even if home prices do come down slightly, the housing market won’t be impacted nearly as much as it was during the Great Recession and home equity gains won’t be nearly as big.” Equity National Celebrates 30th Anniversary With Donation to Birthday Wishes

Equity National Title recently celebrated its 30th anniversary in business by helping homeless children enjoy their own birthday parties with a sizeable donation to New England charity Birthday Wishes. Equity National donated 30 “birthday boxes,” which will be used by Birthday Wishes to host birthday parties for homeless children otherwise unable to enjoy the experience. The boxes include items such as cake mix, frosting, cake pans, candles, plates, napkins, balloons, banners, streamers and birthday gifts. Birthday Wishes serves underprivileged children living in more than 200 family shelters and transitional living facilities throughout Massachusetts, Rhode Island and Long Island, New York, serving 26,000-plus homeless children between the ages of one and 17. The organization works to make a difference in the lives of these children and their families by hosting birthday parties for them. Its Birthday-in-a-Box (BIAB) program provides a party box and birthday gifts to children in other domestic violence shelters; hotels and similar, scattered sites. “Providence and New England have been our home for 30 years,” said James K. O’Donnell Esq., president of Equity National Title. “The people here have been great neighbors to us. It’s a privilege to be able to return the favor by helping some of our smallest and most deserving neighbors celebrate their birthdays as well. We’ve been involved with Birthday Wishes for over five years now—we provided 25 birthday boxes for our 25th anniversary, in fact. It has grown to be part of our own community-wide

initiative, Equity Cares. We want to do more than just write a check in supporting our friends and neighbors, so we’re out in the community at least once a month volunteering at schools, nursing homes, animal shelters and homeless shelters. Birthday Wishes is an outstanding organization driven by wonderful people. It’s an honor to be able to play a part in that.” FHFA Ends Mortgage Servicing Rights Financing Program

The Federal Housing Finance Agency (FHFA) has announced the end of the Mortgage Servicing Rights (MSR) financing pilot program for Fannie Mae and Freddie Mac (the governmentsponsored enterprises). The MSR pilot began in 2018 to provide financing to non-bank servicers as they continue to account for a growing percentage of the Enterprises’ overall servicing portfolio. While both GSEs were approved for the MSR pilot, only Freddie Mac chose to participate. FHFA Director Mark Calabria cited several reasons for ending the MSR pilot. “The MSR market is already served by a wide assortment of highly competitive private sources of capital and financing,” said Calabria. “Going forward, the Enterprises should focus on activities that are core to the guaranty business, mitigate risk, and are essential to end the conservatorships.” Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of: NMP News Flash column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals.

Dear Mortgage Professional, NAMB+ Endorsed Providers are a select group of companies approved by the NAMB+ Board of Directors as being qualified and committed to helping small business mortgage professionals by providing exclusive NAMB Members Only benefits, discounts and offerings, and exceptional customer service. A complete list of Endorsed Providers is displayed below and is available at www.nambplus.com. NAMB+ works hard to continue adding new

relationships that bring value to Members each month. If you have interest in becoming an Endorsed Provider, please contact me for more information. 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.

Ameriagency is a national insurance agency that shops for you, saving you time and saving your client hundreds of dollars on property insurance. Avantus is a technology-driven full-service credit reporting company. Brokers Compliance Group provides compliance support programs.

CIC Credit offers Tri-merge Credit, Employment Screening, risk mitigation & much more.

MassMutual Disability Income provides NAMB members an opportunity to apply for individual disability income insurance (DI) at

Social 5 offers a social and mobile marketing strategy that gets noticed.

Starrex provides innovative service solutions including national appraisal management and credit products.

Syncro connects mobile salespeople to their office website leads.

Thrive Hive confirms that on average, a complete Google business listing gets 7x more clicks. Our free tool will grade your listing and tell you what’s missing.

USA Business Lending is your complete resource for everything commercial lending.

discounted rates. MortgageHippo Swift allows loan originators of all sizes to deliver a modern borrowing experience and reduce origination costs.

n National Mortgage Professional Magazine n OCTOBER 2019

Focus IT supercharges your leads thanks to the Pulse CRM, our flagship tool that connects with your LOS.

Sarma gives you access to merged credit reports CreditXpert tools, AVM Reports and much more.

NationalMortgageProfessional.com

Camber Marketing Group provides premier lead generation, data solutions and direct mail marketing.

National Mortgage Insurance Corporation (National MI) is a private mortgage insurer enabling low down payment borrowers to realize homeownership.

Universal Credit Services is a top ranked national credit reporting agency and authorized report supplier for Fannie May Day 1 Certainty®

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

N A M B

P E R S P E C T I V E

A Message From NAMB President Rocke Andrews, CMC, CRMS

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I am honored to take on the role as president of NAMB, and thank our members and partners for being an important part of NAMB. As a 23-year member of NAMB, I have always found the association to be a strong advocate for me–from lobbying in Washington, D.C. to keeping me abreast of the latest rules/regulations, as well as providing me education, discounts and tools so I can be successful and do what’s best for my borrowers. This is why I have volunteered at NAMB for the greater part of my career, and why many members volunteer and join NAMB. As I took on this new role, it became evident that NAMB needs to re-establish with members, partners and the industry what NAMB’s core purpose and mission is … prosperity for all, since 1973. Over the last couple of years, there has been some debate in the industry that has challenged the very core of what NAMB set out to do 46 years ago, and continues to do today. We felt it was important to put the debate to bed, remind our members and the industry what NAMB stands for, why they should be proud to be a part of NAMB, and activate this member base like never before. What you may not know is that NAMB was formed by a group of members in Florida in 1973 who collected $25 per person until they had enough money to establish this national association. They felt that if they didn’t have a voice in Washington with the regulators, they would be regulated out. Today, we proudly stand as NAMB FOR ALL. This has always been our reason for being and we want to rekindle our focus on all the good that NAMB does for its members, and partners, as well as serve as a call of members to get involved. In return, as the new president of NAMB, I commit to provide greater opportunity for

members to get involved, transparency in our efforts, and hear what matters. You can see our renewed efforts at NAMBforAll.org. While our efforts will create excitement and even raise a few eyebrows, let’s not forget that our strongest voice in Washington will always be our members, with the support of our partners. If we double our member base, we double our power in Washington. I commit to you that NAMB will further open up our lines of communication with you, invite you to serve on more committees, conduct think tanks and look for your input and collaboration. Your support is critical to our success. I also commit to making sure we continue to build on the benefits that come with your NAMB membership. Beyond lobbying for our members and our industry, we will continue to bring you tools like the free NAMB technology stack, discounts to run your business like our new NAMB healthcare plan that save business of two or more employees up to 40 percent in savings per year, and many more that will help accelerate your business. As we move forward and our impact continues to grow, remember that NAMB is for all of us; brokers, small businesses, loan originators and small- to mid-size banks. We’re all in this together, because we’re stronger when we’re together. Let’s keep the momentum going. NAMB FOR ALL!

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

NAMB+ Health Plan Better Health Insurance: Become an Agent for Change Understand your options to consume individual health insurance coverage By Michael Haffey Most individuals, unfortunately, feel that they have only one option to consume individual health insurance in America and that is through the Affordable Care Act (ACA) Individual Market Exchanges. The reality is that we have access to several options and we will explore each of those primary options in this article. To kick things off, the chart on page 21 helps to outline the key elements of each of the programs. Most individuals consuming comprehensive health coverage in America today buy that coverage through the ACA individual market plans in their geography. These plans provide unlimited coverage, all of the essential health benefits, and coverage for pre-existing conditions. However, the premiums, as we all know, are usually very

high and the networks have become limited. This has lead individuals, insurers, and start-ups to seek and develop other options. The two options that could work as a replacement to the ACA individual market would be Short Term Health plans and Medical Sharing plans. Short Term Health plans are usually priced at half the cost of the ACA plans and recent legislation has made the short term plans more attractive for longer-term use. However, these plans do not cover pre-existing conditions and you need to be relatively healthy to qualify for them. In some cases, they also have limited coverage, but again, the premiums in most cases are about half those of traditional ACA individual market plans which is the allure.

N A M B

P E R S P E C T I V E As we continue to move down the continuum of cost and coverage, the next type of plan is called a Limited Medical Plan. These plans provide convenient access to local healthcare providers, like urgent care facilities or direct primary care facilities, for a small co-pay. The monthly premiums range from $99 to $200 for a single person, making them very affordable compared to ACA plans. While limited medical plans provide attractive coverage for everyday care at a small copay (say $25), they do not provide comprehensive catastrophic unlimited coverage. The primary advantage of these plans is access to care at a fraction of the normal cost of traditional ACA plans. Finally, at the lowest cost end of the spectrum, we’ll find virtual care or telemedicine programs that provide access to providers, virtually, at very low price points but do not provide any other protection or coverage. For the informed consumer, there are a variety of attractive coverage options ranging from very inexpensive with limited coverage to very expensive with comprehensive coverage. Depending on your coverage needs and financial situation, each one of these plans could be extremely attractive for you. The new NAMB+ Health Plan provides access to all of these plans! Visit Pendella.com/NAMB to shop your options today.

Medical Sharing programs are another option that can be purchased for less than half the price of the ACA plans. These plans can either be faith-based or non-faith based offerings. These programs can provide comprehensive care coverage, but similar to short term health plans, they too do not cover pre-existing conditions and have limitations that need to be understood before someone consumes them.

Michael Haffey is managing partner, association member benefits for Pendella. Michael’s passion is creating and deploying innovative strategies to assist employers and their employees in controlling their health insurance spend, while allowing access to the best healthcare and moving them towards real wellness and total health spans over 30 years. He may be reached by phone at (833) 736-3355, ext. 706 or e-mail Michael@Pendella.com.

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The National Association of Mortgage Brokers (NAMB) has named Rocke Andrews, CMC, CRMS as president at its recent NAMB National 2019 Conference, replacing Rick Bettencourt, CRMS, who will assume the role of immediate past president of the association. Andrews, broker/owner of Lending Arizona, has served in several high-profile positions at NAMB, including serving a term as NAMB president in 2015. “Rocke has been an active member, volunteer and leader of NAMB for more than 20 years,” said Bettencourt. “NAMB has huge momentum right now as our industry accelerates. Rocke brings great leadership to our diverse member-base and unites our industry.” In a powerful speech that opened the NAMB National event in Las Vegas, Andrews made a compelling call to its membership. “It’s time to remember that NAMB is for its members. Not one group or another. NAMB is for all its members. And the core purpose and mission that NAMB set in 1973 is more important than ever today. Prosperity for all,” said Andrews. Joining President Andrews and Immediate Past President

Bettencourt on the 2019-2020 NAMB Board include President-Elect Kimber White, CRMS; Vice President Linda McCoy, CRMS; Treasurer Wayne King, CMC, CRMS; and Secretary Michelle Velez, CMC; along with Directors Dawn Cychner; Mike DeSantis; Ernest Jones Jr.; Paul Marsh, CMC, CRMS; Matt Oliver, CRMS; and Marty Pfeiffenberger, CRMS. Andrews also unveiled a new campaign that he explains reasserts NAMB’s industry leadership and core purpose when it was formed by members and for members in 1973. “NAMB for All” drives awareness of the significant tools, education and advocacy that NAMB delivers to its members and the industry at-large. “My commitment to you as incoming president is that I will reach out regularly to understand your pain points and where we can help alleviate them,” said Andrews in his speech. “I will always keep you apprised of all the initiatives taking place, but I have one ask … be an active member. NAMB is a member-based, volunteer association. We need to hear from you. We need you getting involved. We need everyone working together. NAMB for All!”

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Rocke Andrews Elected NAMB President, Launches “NAMB for All” Campaign

N A M B

P E R S P E C T I V E

Velocity Releases Investment Property Data in “WINning” Fashion

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Velocity Mortgage Capital has released the findings of its WIN (What Investors Need) quantitative research survey, from interviews conducted with nearly 300 independent residential and small commercial property investors. Velocity shared its findings and analysis during “Funding Feud,” a game show the company sponsored at the recent NAMB National 2019 event in Las Vegas. Results from the research on investors include: l Single-family homes are the most common type of investment property. One of six investors owns a single-family home that is used for investment purposes. l When combined, residential 1-4 properties, which include singlefamily units, condominiums, townhomes and apartment buildings with less than five units, are by far the most popular types of investment properties among independent real estate investors. l Approximately 11 percent of independent real estate investors own a multi-family property with more than five units with a value less than $10 million. l Mixed-use buildings, composed of commercial and residential units, account for four percent of investment properties. l Small commercial buildings, valued at less than $10 million, account for 13 percent of investment properties. l Sixty percent of investors rely on the assistance of a real estate agent to find investment properties; however, age plays an important role in the adoption of other methods. l Investors under the age of 55 are 38 percent more likely to engage with online listing sites and are 33 percent more likely to use the Internet when researching investment properties. l Investors over the age of 55 are 67 percent more likely to utilize real estate auctions and 20 percent more likely to consult with a friend when looking for investment properties.

“Independent real estate investors and small business owners play a key role in helping communities grow and prosper, and Velocity’s WIN research helps brokers increase their businesses by providing an understanding of how investors find, evaluate, and select investment properties, NAMB President-Elect Kimber White with actor and brokers and financing television personality John O’Hurley during the solutions,” said Velocity Mortgage Capital-sponsored Funding Feud Michael Oddi, chief event at NAMB National in Vegas marketing officer for Velocity Mortgage. “We commissioned the WIN survey for the benefit of brokers and are happy to support their businesses with its findings and our subsequent analysis.” Actor and television personality John O’Hurley, known for the role of J. Peterman on Seinfeld and as the fifth host of Family Feud, hosted Velocity’s Funding Feud event at NAMB as an entertaining, fun and engaging way to inform brokers of the survey findings. “The Funding Feud was entertaining, fun and highly educational,” said Kimber White, NAMB president. “Even though I’ve been in the mortgage business for more than 30 years, I learned some important facts about real estate investors that I never knew.”

NAMB’s Road Show Comes to Ohio Monday, October 28 Embassy Suites Columbus-Dublin 5100 Upper Metro Place • Dublin, Ohio • 8:30 a.m.-4:00 p.m. Join NAMB for a variety of speakers in Dublin, Ohio that will provide attendees with information and tools to help grow and improve their businesses when NAMB’s Road Show visits Ohio. Registration for this event is free!

Agenda 8:30 a.m.-9:00 a.m. Registration 9:00 a.m.-9:05 a.m. Welcome from NAMB President Rocke Andrews, CMC, CRMS 9:05 a.m.-10:20 a.m. “What’s the 411 on the Available Affordable Products and Tools?,” presented by Freddie Mac 10:30 a.m.-11:50 a.m. “Getting Off the Loan Officer Roller Coaster,” featuring Carl White With Mortgage Marketing Animals Have you wondered why some loan officers are having their best month ever, while others are seeing significant decreases? Do you find yourself having one great month, followed by a slow month, you know, the “Loan Officer Rollercoaster?” As the current branch manager of one of the most successful mortgage branches in the nation, Carl White is going to map out for

you how to have ever increasing months of high production, by eliminating the “Good month followed by a slow month,” and “Who does what” with the most successful loan officers throughout the nation. Noon-12:50 p.m. NAMB President’s Update with Rocke Andrews, CMC, CRMS 1:00 p.m.-2:20 p.m. Session Featuring Freddie Mac Focused on Technology 2:30 p.m.-4:00 p.m. “The Perfect Week for a Top Producing Loan Officer,” featuring Carl White with Mortgage Marketing Animals In this session, Carl White will map out “The Perfect Week” to closing more loans, all while having less stress and more time off. This will be a step-by-step list of very specific activities for you to do each day of the week to maximize lead generation and lead conversion with specific scripts, texts and e-mails samples all provided.

For more information or to register, visit NAMB.org, or contact NAMB Executive Director Valerie Saunders at (202) 434-8250 or e-mail ValSaun@NAMB.org.

N A M B

P E R S P E C T I V E

A Message From NAMB Membership Committee Chair Ernest Jones Jr. As Membership Committee Chair of NAMB, I would like to welcome the new NAMB members listed below and offer the following message … Thanks for joining NAMB. We are sure you will enjoy the benefits of membership! Our Web site, NAMB.org, contains valuable information about upcoming events, NAMB certifications, legislative actions, the NAMB Toolbox, and information about all the benefits available to you, including our affinity partnerships available at NAMBPlus.com. New members can also access video recordings of educational events and informational Webinars hosted by some of our sponsors at the NAMB Video Stage and our Endorsed Providers at the NAMB+ Video Stage! Understanding the tools in the NAMB Toolbox Membership includes access to many benefits. If you have not looked in the NAMB Toolbox, you may be missing out on some great tools that can help you improve your business. Some examples are listed below: l NAMB All-In is a cloud-based loan origination system created for

mortgage brokers to streamline and support your success. From a mobile-friendly customer experience, to an integrated wholesaler marketplace, you will have everything you need to “wow” borrowers and win more business with a new competitive edge. l NAMB+ CRM easily and thoroughly integrates with Calyx PointCentral and will be integrating with Encompass in early 2019. NAMB+ CRM supercharges your LOS providing lead and referral management tools, automated email marketing and loan status alerts, and intelligent task management for your loan production. l EC Purchasing offers great discounts for NAMB members on copy/print, IT, overnight shipping, wireless and more. Review discounts from a wide range of national companies, then select discounts on the products and services that best meet your needs. Check out all the great tools in the NAMB Toolbox today at NAMB.org! For more information on the benefits of NAMB membership, visit NAMB.org and click on the “Membership” tab. Sincerely, Ernest Jones, Jr. Membership Committee Chair, National Association of Mortgage Brokers

NAMB New Members Report Rebecca Knight Mark Kossel Robert Lang Adrienne Lascano Rhett Laufenburger Jessica Lawrence Michelle Lee Marine Lesguer Paul Lessard Paul Liang Sean Lusk Toby Lynn Jason Mansoor Elise Marquette Julian Martinez Omar Mateen Jamal Mateen Gregory Matters George Maus Matthew McAllister Denise McGlothlin Tara McNaughton Andrew Mente Sue (Sam) Meyers Renny Mitchell Paige Mooneyham Monty Moore Henry Moranchel Hector Morataya Jose Moreno Gerasimos Morfesis Anthony Morris Jeffery Motter Tauheedah Muhammad Michelle Mulligan Eddie Murphy Amy Myers Thien Nguyen Andre Nieuwendam Lisa O’Connor

Stephen Ozuna Juan Palacio Christine Parke Dennis Pass Mike Pearson Pedro Perez Kevin Petit-Homme Todd Pigott Edwin Pilger Rhonda Pulver-Smith Miao Qu Rick Radillo Sonja Reeves Elizabeth Richardson Leeonnas Richardson Mike Roberts Leo Rodriguez Esther Roudebush David Sadek Maryann Salt Ivan Sanchez Elliot Santiago Gerald Santoro Jonathan Schoeberlein Michael Schultz Andy Seepersad Robert Seymour Cory Sims Scott Sloat Matthew Sloley Keith Smith Eslia Smith Scott Smith Nicholas Snively Carlos Soto-Aguilar Camille Spenner Melinda Sweet Randy Swihart Dean Takamine Scott Tennant

Doug Thaler Ana Torres Edduar Trillo Bryan Trochessett Vanessa Venneri Palumbo Cecilia Verano Michael Vernia Robert Verrino Mark Violette Ray Warda Richard Wercholuk Quinn White Taryn Williams Shawn Wolcott Thomas Woodward Mae Wu Mary Youmans Maureen Young Steve Younger Mario Zamora

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Shawn Eglseder Ruth Eshaghian Melinda Estrada Michael Farrell Andrea Figliolini Christopher Flavio Jack Fogelson Annia Fonseca Harold Foraker Shannon Fortner Rod Freeman Perla Fuentes Darnell Gardener Heather Gennette Glenn Geraci Jamie Goodman Chasity Goodson Stephen Gran Shahida Grissom Tatiana Gutierrez Camacho Jeanne Hall Kelley Hall Kendall Hall-Caccavale Shaun Hamman John Hargis Todd Harrington Kurt Hayer Laura Hemsworth Talante Henderson Rodolfo Hernandez Jill Hoogendyk Nefertari Jack Tameka Jackson Kim Johnson Jake Jones Janel Jorquera Tara Keay Audia Kerswell Kamran Khosravi

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Manjur Ahmed Brian Alexander Ulrick Alfred Adrian Allred Steve Alvarado Jessica Alvarez Beth Anderton Kenneth Baboun Alicia Bacik Daryion Banks Mark Barrett Frank Beaton Kathleen Bechtel Jamie Benson Karen Beratta Milton Bernal Gunna Bolf Alexander Boriss Alejandro Borrayo Michael Breshears Jeffrey Briggs Jason Brookes Cindy Brown Clement Bucher James Buck Gary Burmeister Melissa Butler Hilda Campbell Marcelo Carpovich Ryan Chambers Arton Chau Kathleen Chin Travis Colquett Colin Conner Steven Corcoran John Del Casale Donna Demarco David Dickson Heather Donaldson Steven Druck

Scenes From the NAMB National 2 S e p t e m b e r

The packed trade show floor of Caesars Palace in Las Vegas

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NAMB’s Exhibit Hall provided a great networking forum for attend

Vendors were on hand to discuss their company’ Ginny Ferguson, Membership Committee Chair Ernest Jones Jr. and NAMB PAC Chair Jim Nabors at the NAMB Membership booth

The DeLorean from “Back to the Future” made an appearance on the trade show floor during NAMB National

al 2019 Conference & Trade Show e s a r s

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Lenders and vendors mingle during NAMB National in Vegas

ompanyâ&#x20AC;&#x2122;s product offerings during NAMB National

Attendees feeling the 80s vibe during the NAMB National End of Conference 80â&#x20AC;&#x2122;s Party

Attendees on the trade show floor during NAMB National

N A T I O N A L

M O R T G A G E

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

M A G A Z I N E ’ S

2019 Mortgage Professional of the Year

Barry Habib Seeing Opportunity Everywhere By Rick Grant

arry Habib is a nice guy. You can tell within the first few seconds of any of his “Master the Markets” videos on Mortgage News Network. He’s the kind of guy who calls you “brother” and makes you believe he is actually related to you somehow. He isn’t afraid to tell you stories that would embarrass the rest of us and listens when you speak with an intensity that makes you feel certain he’s actually hearing what you say.

But he’s also a professional speaker who spent 13 years hosting his own program on a major cable news network, talking intelligently about economics and the housing industry. He is a serial entrepreneur who has owned at least three businesses in our industry, produced and acted in the Hollywood movie based on a hit Broadway play, created a successful medical imaging company and presented on stage with some of the most successful speakers in the world. So, who is this guy, really? Could he really be this good? I had the opportunity recently to call on Mr. Habib by virtue of the fact that he has been chosen by the team at National Mortgage Professional Magazine as the second person in the publication’s history to be recognized as Mortgage Professional of the Year. I was looking forward to finding out who this well-known industry figure actually was and what I could learn about how he became so successful. I was not disappointed. What you need to know about Barry You can learn almost everything you need to know about the kind of person Barry Habib is by hearing him say three words. He wrote them into chapter one of his new book, Money in the Streets, which is due to hit bookstores later this year … “Mindset is everything.” We’ve heard this many times from countless motivational speakers and success coaches. To find out why it really means something when Habib says it, we have to go back a few years, to 1958. That’s the year his parents came to America and made their home in Brooklyn, N.Y. Originally of Spanish descent, Habib’s family had settled in Turkey several generations before his parents immigrated to America. Turkey, it turned out, was not an easy place for his family to be. America, on the other hand, was rumored to be a country so rich that there was literally money blowing down the streets. All you had to do was reach down and pick it up. So, with that dream in mind, his parents packed their entire lives, including his older brother and sister’s possessions, into six suitcases and boarded a ship for America. It wasn’t all that difficult to pack because the Turkish government confiscated most of their belongings—94 percent of the family’s net worth—when they announced they would emigrate. No one in the family spoke a single word of English. One of the first things they noticed upon arrival was that there was actually no money blowing down the streets, but at least there was work. An international journalist in Turkey, his father could only find work in America at a hot dog stand. His mother found work in a sweatshop making dresses. continued on page 58

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should be part of your financial plan, not a commodity. Others fought over rate, while I put my client’s kids through college and managed their debts.”

n National Mortgage Professional Magazine n OCTOBER 2019

“A mortgage is so important and

OCTOBER 2019 n National Mortgage Professional Magazine n NationalMortgageProfessional.com

Donâ&#x20AC;&#x2122;t Let

Market Amnesia Wipe Out Your Pipeline By Ken Bartz

products and solutions. Therefore, they’re very wellinsulated against any market shift. If the market changes, they already have cash-out transactions on the pipelines. Their salespeople are already selling cash out there. They are not just answering every phone call and saying, “What’s your interest rate? Oh, we can do better.” They’re digging in, solving problems for potential borrowers, and they are holding their salespeople accountable. Ultimately, one of the things that you have to talk about is that your organization has to make everyone aligned with that strategy. Preventing market amnesia We already talked about the fact that lenders have to be reviewing their market and product mix against what the market is doing. Also, lenders need to continually be managing and training their LO’s regardless of if they are exceeding the current quote, at a quote or below. They need to go beyond that type of business where they hang up, get the next phone call and make the next dial because that is not a value-driven business. It doesn’t create long-term relationships with consumers, and that’s going to make it much more difficult when rates change. Here are four tips to help lenders prevent market amnesia: 1. Maintain focus on proper sales techniques, decent salary, and offer real value to consumers. That’s going to be useful in every market condition.

2. Don’t just market for one particular product type or offering. This is what a lot of lenders do; they want to focus on what is immediately in front of them when rates increase (and they’re going to) they move on to the next thing. That is a way to make some money today, but it is shortsighted if you want longterm sustainability. 3. Lenders’ product marketing mix needs to be well rounded. Also, lenders must leverage data intelligence to maximize their marketing spend. 4. Institutionally, make sure you don’t forget how to do multiple loan types within your organization. For instance, in 2018, so many clients struggled because they built their processing only around streamlines, and you don’t have to be a really strong processor before you process a streamline. You start getting an understanding of how to work with ratios and all of those things. They are instrumental skills; even if you don’t do a lot of it keep your staff educated on it, keep them up-to-date on your guidelines, and keep them engaged in the overall market and not just one tiny share of that market. Lenders that learn from the past strategically monitor the market, and leverage data intelligence will ensure long-term sustainability, high LO engagement and strong borrower satisfaction scores.

Ken Bartz has spent 25 years in the mortgage industry, beginning as a loan officer. In 2005, he transitioned fulltime into the tech space developing a wildly successful loan operating system, and in 2013, created Monster Lead Group, a direct marketing agency, which helps mortgage clients identify and close deals through direct marketing strategies that employ Monster’s custom CRM, call tracking, campaign processing software, sales training, and strategy into a full cycle marketing solution.

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previous year was gone. At that time, we were floating our pipeline. There was so much spread on loans, and we were exploding our pipeline; the rates were dropping, and we lost 90 percent of our pipeline overnight. At that point, necessity became the mother of invention for us, and it dawned on me that we were relying on interest rates as the primary driver of our business. That was when I decided to diversify because I was determined that we would never again be in such a situation. Market amnesia happens when we only focus on rates as our primary business driver and don’t learn from the past. In 2018, there was another exodus in the mortgage industry because rates were suddenly higher, and nobody knew what to do or couldn’t figure out how to find new deals. The cost to originate a loan was rising significantly in addition to rate increases. Lenders with market amnesia were only focused on the rate game and didn’t know what to do to attract new business. Progressive lenders who learned from the past were scaling up when everyone else was cutting employees, losing processors and losing LO’s. Theses progressive lenders are the people who don’t ever look at rate-dropping as the primary source of business when it happens. It’s just icing on the cake. The people who can do that reap the most significant benefit when the market turns. And right now, I’ll say that the icing is more significant than the cake for many of these people who had scaled up in 2018, but they already had an established strategy for their mortgage business that was not solely rate dependent. Here is an example of some progressive lenders and the type of results they are getting. Company #1 with 25 reps going into 2018 came out with 45 reps. They went into 2018 doing $60 or $70 million in volume. Fastforward to 2019, and that same company is doing more than $300 million. Company #2, led by Mike Palmer, experienced the same kind of mass expansion. They went from $60 million to $100 million by the end of 2018, and now in 2019, they have already done in excess of $230 million. Company #2 has doubled their business because they continued to market and sell proven

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n today’s mortgage marketplace, it is easy to get caught up in the current lending environment and the success many lenders are having. Rates have remained pretty low, borrower demand is up, lenders are experiencing record numbers, and LO’s are enjoying big commission checks. For many, life is good. What often happens in this type of market is lenders and LO’s start to become complacent; they take the path of least resistance because deals are relatively easy to come by. They don’t stick to the fundamentals that help them become successful in the first place. So, if you’ve been in this business long enough, you know that when rates are low, they’re bound to go up eventually. And when they go up, they are bound to go down—eventually. The mortgage market is cyclical. There is going to be another 2018. Hopefully, it’s not another 2008, but history teaches us that rates are always in a state of flux. When things are easy, we forget what it’s like when times were hard, and that’s what is mean by “market amnesia.” Don’t forget the pain you went through when the market radically changed. Are you falling into some of the same bad habits that you had back then? It is difficult to choose something harder just because it’s right. People don’t want to be reminded of the cyclical nature of the mortgage business. So when times are comfortable, there is natural abundance. LO’s can hold out their hands, and deals are going to fall their way, and it is hard not to want to stick both hands out there and just let it all fall in there. When I started my mortgage company in 1997, we worked hard, a couple of us pulled together, and we did things in a certain way. In those times, rates were very high. I mean, you could still find people in those days (the mid-90s) who were paying nine percent to 12 percent, and we could bring them down to six percent. That was the easiest rate you could sell in the world. Getting somebody with nine percent to agree to six percent … that was too easy. But then, the financial crisis happened in 1998. I walked into my office one day, and I realized that all that I worked for in the

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T H E B E C K W I T H B

The

L O G

By Christine Beckwith

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The Undeniable Discovered Path to Success By Christine Beckwith

would be no surprise whatsoever to me what it represented in the end or found in its test group. I now have a new class on the “Power of Positivity,” but I can now teach to the nay-sayers more effectively. Barbara Fredericks would take three groups of people and isolate them. She would put one group in a negative atmosphere, what those folks read, how they lived, ate, sleeping patterns, exposure to negative people on a long-term basis, as compared to groups that were put in a positive atmosphere, surrounded by all things positive, healthy food, exercise and positive reading, people and things. Then, the third group, the “control group,” who would be given indifference atmospherically. Fredericks’ results would be that of a theory she calls the “Broaden and Build” theory. So, in order to arrive at this result, I will take you through the many discoveries of the study. First and foremost, the negative folks who were subjected to all things negative. These folks would, over time, lose their focus, decline in business organization, they would become severely distracted at work, unproductive and even grow sick and would become more susceptive to illness. The control group would have an average level of both bad and good occurring in their lives. But the real discovery was in the group of people who had been immersed

in positive environments. Those people came out thriving. But before I break the obvious results I am walking towards down, let me explain a few things from the scientific part of this I found fascinating. One facet of why people who are experiencing negative emotion were unable to “Broaden and Build” was because they were in a reactionary stance in life. The study would explain that when a person was experiencing sadness, illness, anger, deception, humiliation, bullying or the many other negative emotions that run the gamut of bad feelings, the reaction for a human in these scenarios is always two things; “Fight or Flight!” People experiencing negative emotions either want to run or fight. Made perfect sense to me, but what was mind-blowing to me is that I hadn’t ever, in my 50 years, heard someone explain that to me before. Furthermore, people experiencing those feelings and having a reaction of fight or flight to them are unable to process other emotions during that time. So, there is no room for them to feel happiness or elation, so they stay stuck in a perpetual space of bad feelings which then lends to the diminishment of all other things, like health and job security and overall ability, to cope with everyday life. People who were in the positive continued on page 99

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this year “The Beckwith Blog” is something that should stand to educate, motivate and inspire my readers. It should be pertinent to the professionals who take the 10 minutes with their coffees or lunch breaks from office cafeterias and park benches to resonate. So today, this month, my contribution is about a recent article I read in Forbes magazine about a study performed by Barbara Fredericks, a professor at North Carolina University. I had been updating a class I wrote a decade ago. I had come across a pattern of behavior that most people would have dismissed, and I believe for a number and variety of reasons. That behavior was around the topic of people who focus on being positive. I had given much thought a decade ago when I began writing my first book, Wise Eyes: See Your Way to Success, that, in fact, I had been someone who hated being around negativity. In fact, it repulsed me in some ways. I felt myself dying in its presence, rising to fight against it … fleeing from it. So, I would later write a workshop, and now today, so many years later, I was being asked to teach this class and it needed updating. So there I was, searching online for facts that could take this topic out of the realm of “fluff” and into a scientific realm where I could share real data on the effects of this concept on business. In that Google Search, I discovered this article that spelled out a study performed. It

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t’s fall, I’m seated on an airplane headed to my own first hosted industry convention. I suppose I should be exhausted. I have worked almost a month with no days off. I have enjoyed just small pockets of brief family time or an occasional movie. The stakes are high, yet again, on delivering an impressive conference that leaves guests running away with our “vibe” in tow. Why I am asked would I do a conference? What is your goal, I’ve been repeatedly asked. Well, it’s all part of a master plan to take over the world. That would be a hysterical answer to this question. The truth is, this is a projected part of our overall annual business plan, year one. Perception is 9/10th’s of the law they say. So, we knew right around the one-year mark, a new company would either be lifting and thriving, or dwindling and dying. Ours is the aforementioned, not the latter. Community also comes to mind. Having and getting the support of industry leaders who see us as a friendly competitor. Branding is also the reason to continue to push our brand into new places. Sovereignty, to show we are a viable organization. Sales, to capture or pull over the fence impending sales. Voice, to have people see and hear us as we intend to be seen and heard. But I digress. I have given thought as I have written my blog

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.

Caliber Gets in on Blockchain

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Caliber Home Loans Inc. has become the first lender outside of Figure to originate loans directly on the Provenance blockchain platform. By originating, servicing and financing loans on Provenance, Caliber looks to deliver an outstanding consumer experience, while lowering costs, reducing risk and improving financing execution throughout the entire loan process. Caliber is originating Caliber Home Equity Line of Credit loans as the first customer licensing Figure SaaS, a best of class loan origination system natively integrated into blockchain. Figure SaaS offers loan origination platforms in home equity and mortgage, and will soon offer multiple other asset classes and product offerings. All will feature full integration into Provenance to deliver origination, servicing and financing benefits. “We are delighted to be partnering with Figure and offering our customers a distinctive, industry-leading product,” said Sanjiv Das, chief executive officer of Caliber. “We think the ease and speed of this process is truly unique. Unlike traditional home equity lending timeframes which often stretch out for weeks, our borrowers can now complete the entire process digitally and access their funds in days. We think that’s a great solution and gives our customers tremendous flexibility.” Mike Cagney, chief executive officer of Figure, said, “Figure is excited to inaugurate our third-

party Figure SaaS platform with Caliber, one of the world’s leading mortgage lenders. Caliber’s customers are now experiencing our fast, customerfriendly process as well as the efficiencies of the Provenance blockchain platform.” Flagstar and Detroit FinTech Bay Announce Startups for Mortgage Tech Accelerator Program

Flagstar Bank and Detroit FinTech Bay have announced the first startups to participate in the Flagstar Mortgage Tech Accelerator Program. The three companies are Brace, which focuses on servicing nonperforming loans; boost.ai, which develops A1-based chatbots for the banking sector; and Home Captain, a real estate SAAS technology company that acts as a conversion optimization system. The Flagstar Mortgage Tech Accelerator Program has been jointly designed by Flagstar Bank and The FinTech Consortium, a global fintech ecosystem builder. Detroit FinTech Bay is FinTech Consortium’s dedicated hub in Detroit. The program focuses on startups active in developing innovative technology solutions for the mortgage industry. It is the first and only accelerator program in the United States exclusively dedicated to mortgage technology. Flagstar and Detroit FinTech Bay solicited applications from companies working on breakthroughs in all facets of the mortgage business, including

mortgage origination, processing, marketing, servicing, compliance, sales, underwriting, credit and quality assessment. Three organizations were selected based on company progress and growth. This first round of cohorts will be followed in the program by successive startups meeting the criteria. “The response we’ve received since announcing the Flagstar Mortgage Tech Accelerator has been amazing,” said Rocky Stubbs, head of digital lending for Flagstar Bank. “We knew there was a need for a program like this, but even we didn’t anticipate the sheer number of fintech firms that would want to apply. It’s incredibly exciting to see these emerging technologies and business models—not just for the program, but as a window into the future of the industry.” Maissan Almaskati, chief executive officer of the FinTech Consortium in the United States, said: “We’re thrilled to be working alongside Flagstar and these three exciting, high-quality fintech startups. We’ve curated an acceleration roadmap for each of them, and look forward to facilitating and supporting their growth during this important phase. Their participation in the Flagstar Mortgage Tech Accelerator is an opportunity to uniquely contribute to the inevitable end-to-end digitization of the mortgage process.” The benefits of the threemonth program include: Access to mentorship from experienced Flagstar executives; Bespoke roadmap design for product acceleration and development; real-product testing opportunities; access to a workspace at Detroit FinTech Bay, located at TechTown Detroit

on the campus of Wayne State University; access to an extensive network of potential customers; and access to a residency at Silicon Fintech Bay, Fintech Consortium’s Silicon Valley innovation hub. DocMagic Forms Partnership With INTEGRA Software Systems

DocMagic has announced that INTEGRA Software Systems will begin to offer the company’s document preparation solution to their client base via an integration with INTEGRA’s new LOS, EPIC. Recently, some of INTEGRA’s clients began transitioning from its legacy LOS version, converting to its new multibrowser based LOS, EPIC. New INTEGRA clients have been implementing EPIC, integrated with DocMagic’s solutions, with great success. The partnership gives lenders the ability to leverage DocMagic’s end-to-end document production, preparation, delivery and automated compliance service as a fully embedded integration within EPIC. This includes the ability for borrowers to conveniently and compliantly eSign all documents required to meet state and TRID-based disclosures, eliminating paper and optimizing the document process from initial disclosures through closing. “INTEGRA is a long-time, trusted integration partner of DocMagic and we are pleased that they are introducing our end-to-end document preparation solution to their

lenders utilizing the EPIC LOS,” said Steve Ribultan, director of business development at DocMagic. “In a margin compressed business environment, this is of particular importance as lenders are better able to manage their costs using an all-in-one solution.”

modern tools and interconnectivity to be effective and efficient. loanDepot is the only contemporary brand among the top retail lenders to offer this.” NewDay USA to Issue VA Mortgages in Ginnie Mae Pools

loanDepot Opens Two New Hawaii Locations

has shown a significant reduction in prepayment speeds, and meets Ginnie Mae guidelines.” Churchill Mortgage Celebrates New Traverse City Branch

Churchill Mortgage has announced its new location in Traverse City, Mich. Churchill opened an office in Traverse City to help both locals and vacationers pursue their continued on page 96

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loanDepot has announced the opening of two retail locations on Oahu and Maui, which will be led by established Hawaii mortgage industry veterans, Jason Martinson and Dawn Robinson Naya. “We are very excited to have such amazing talent join loanDepot’s team. Together, they will lead the charge in deepening our relationship with Hawaii’s homebuyers and owners, and help guide the future of real estate lending for the Hawaii communities,” said Alec Hanson, loanDepot’s SVP of production. Overseeing loanDepot’s Hawaii Retail sales operations is Area Manager Jason Martinson, who comes to loanDepot with 20 years of experience gained at local branches of Bank of Hawaii, Central Pacific Bank, Hawaii HomeLoans Inc., Countrywide and HomeStreet Bank. Martinson currently serves as president of the Mortgage Bankers Association of Hawaii and is a board member of the Hawaii Homeownership Land Trust and Nanakuli Housing Corporation. Managing the Honolulu Retail location is Dawn Robinson Naya, who has worked in Hawaii’s mortgage industry for the past 26 years in origination and sales management positions for companies such as Homebridge Financial (HomeStreet Bank). The Maui Retail location welcomes Loan Consultant Kim Kawachi, a Chairman’s Elite Performer. Born and raised on Maui, Kawachi has helped many families purchase homes and refinance their mortgages over a 16-year career in mortgage lending. She has been a topproducing loan originator in previous positions at HomeStreet Bank and Wells Fargo on Maui. “Our Hawaii team’s first order of business is to find the most qualified local talent and set them up for success,” said Martinson. “With digital transformation revolutionizing home lending, today’s loan consultants need

NewDay USA has announced that it received approval to become a Ginnie Mae Servicer Seller for VA loan production. NewDay was previously

approved to issue Ginnie Mae I and II securities for FHA multiissuer securities. The Fulton, Md.-based company stated military borrowers seeking purchase loans or refinancing will benefit from its increased participation in the Ginnie Mae programs. “Our information-based strategy that focuses on analytics and credit risk is unique in the mortgage industry, and ensures we produce exemplary portfolio loan performance,” said NewDay Founder and CEO Rob Posner. Additionally, upon Ginnie Mae review, our prepayment activity

National Mortgage Professional Magazine Presents …

Mortgage Banking’s Most Powerful Women 2019 his month, we present our second annual list of “Mortgage Banking’s Most Powerful Women.” Honorees were selected based on their accomplishments where they were instrumental to a major industry innovation, the number of social media followers, or have overcome some seemingly insurmountable obstacle in their career to rise to the top. When narrowing down our list of “Mortgage Banking’s Most Powerful Women,” we took three key words into consideration: “Pioneer, Leader and Innovator” in compiling our list of today’s top female leaders in the mortgage profession. National Mortgage Professional Magazine congratulates all of the women who continue to blaze new trails and lead the way for a brighter future in today’s mortgage profession.

Christine Beckwith President and COO, 20/20 Vision for Success, Manchester, N.H. Christine Beckwith is a 30-year mortgage industry veteran. For more than three decades, she consistently won awards and accolades in mortgage sales originations at all ranks, all the while, producing at the top five percent consistently. For the past 18 years, she has run mortgage companies at a senior and executive level. She has become a sought-after public speaker on the mortgage circuit. She has written and released two best-selling books, and won an American BookFest award for her sales book Wise Eyes, while receiving the “Best-Selling” label for Clear Boundaries as a Hot New Release on Amazon. Last year, Christine launched her coaching company, 20/20 Vision for Success, into the mortgage finance and real estate world. When asked about future plans, she says in all seriousness with a huge smile, “I plan to go in and grab market share—again—from the boys who dominate this space in our field!” She has been recognized by National Mortgage Professional Magazine as a “Most Connected Mortgage Professional” and a past awardee to the “Most Powerful Women in Mortgage Banking” honor. Rhiannon Bolen, AMP Regional Sales Director, Mortgage Capital Trading Inc. (MCT), Dallas, Texas Rhiannon Bolan, AMP is a long-time veteran of the mortgage industry, having dedicated her entire career to working in the space, successfully building an extensive network of executives and influencers. Rhiannon is currently a regional sales director at Mortgage Capital Trading Inc. (MCT), a mortgage hedge advisory and secondary marketing software firm where she oversees the Southern territory. Before MCT, she was at Lenders One where she held the position of regional AVP for the Western Region, working with mortgage lenders of all types to arrive at various solutions that help reduce business costs and stay ahead of industry trends pertaining to processes and technology. Prior to Lenders One, Rhiannon was the regional vice president of South Region field sales for Arch Mortgage Insurance. At Arch, she helped hire and train a team of account managers and was responsible for creating sales strategies and managing and developing various territories which led to over achievement of sales production goals. Previous to Arch, Rhiannon spent much of her career in the credit risk space, working in regional and national outside sales roles in the mortgage insurance industry. She also spent more than 10 years in business development at PMI. Laura Brandao President, American Financial Resources Inc. (AFR), Parsippany, N.J. As an industry source of knowledge, positivity and passion, Laura Brandao radiates energy for bringing families home. Launching the wholesale channel of business for AFR in 2007, Laura now serves as company president. For more than 12 years, Laura has been the driving force catapulting

AFR Wholesale to the top of the manufactured home, one-time close and renovation lending markets. Growing AFR into a national leader in specialized programs, she stays connected to the clients and families she serves, allowing her to develop new products based on market demand, including VA renovation, USDA repair escrow, and a full suite of one-time close construction-to-permanent programs. Under her leadership, AFR remains on the cutting-edge of technology with mobile-friendly applications that cohesively integrate AFR with the borrower, real estate agent and broker. Among her accolades, Laura was most recently named a “Women with Vision” award winner, a “50 Best Women in Business” by NJBIZ, and one of “Mortgage Banking’s Most Powerful Women” by National Mortgage Professional Magazine in 2018. She is also actively engaged with many industry organizations, including the Association of Independent Mortgage Experts, and is a sought-after speaker, moderator and panelist. Kim Campbell Vice President of Operations, Premier Nationwide Lending, Lewisville, Texas Kim Campbell is vice president of operations for NTFN Inc. a full-service mortgage banker established in 1992 and headquartered in Lewisville, Texas. With nearly 30 locations, the company funds an average of $2 billion and services homebuyers across 17 state lines. Kim has been with the company for 17 years and leads the company’s daily operations. She has directly contributed to the company’s growth by finding the best solutions to various scenarios with her 23 years of mortgage industry experience. Kim is a graduate of Texas Tech University, with a degree in finance/real estate. In her spare time, she enjoys spending time with her three children and the many sports they are involved in. Cara DeStefano Regional Sales Manager, REMN Wholesale, West Palm Beach, Fla. Cara DeStefano is regional sales manager for REMN Wholesale in West Palm Beach, Fla. “Cara is a true pleasure to work with. Her everyday positive attitude and ability to listen is a true inspiration to the people around her. She is the type of person that makes you better. She is a lead by example manager with a ‘Put me in Coach!’ drive. Cara is the type of person you just want to keep thanking. You would be doing yourself a favor to align yourself with Cara.” Vicki DiPasquale Vice President of Sales, Simplifile, Provo, Utah Vicki DiPasquale is vice president of sales for Simplifile, where she has overseen and supported all sales activities and directed county and submitter growth efforts for the last eight years. With more than 30 years of title industry experience under her belt, Vicki has held positions as regional manager, divisional vendor manager, state closing department manager, and agency operations manager

National Mortgage Professional Magazine Presents …

Mortgage Banking’s Most Powerful Women 2019 for prominent title insurance agencies and national title underwriters, in addition to independently consulting on a number of real estate projects. Vicki’s expertise encompasses all aspects of title insurance, closing, sales, agency and management, and she has an affinity for using technology to simplify business processes. Vicki has also lead several national leadership and workflow improvement initiatives across multiple states during her time in the title industry. She has her doctor of management in organizational leadership degree, in addition to being a Certified Land Title Closer (CLC), an approved educator with many of the state land title associations, and a member of the Property Records Industry Group (PRIA). She is also a member of ALTA’s Best Practices Task Force and its Membership and Organization Committee. Dana Fortin Chief Marketing Officer, Embrace Home Loans, Middletown, R.I. Dana Fortin is chief marketing officer at Embrace Home Loans, where she oversees a staff of 10 direct reports, with a full team of 36. She manages all marketing functions, including marketing automation, analytics, creative, brand, retail support, Web site, direct mail and all digital media. She has more than 25 years of experience in the financial services and consumer goods industries, and has been with Embrace Home Loans for 18 years. She began her mortgage career as a marketing manager at Century Mortgage. Two years later, she moved to Advanced Financial Services, Inc. and served as president of Marketing Management Inc. for seven years before joining Embrace Home Loans. Dana is one of only two people to win Embrace Home Loans’ “CEO’s Excellence Award.” She also recently became an International Coach Federation (ICF)-Certified Coach. Dana received a BBA from Rhode Island College and a master’s degree in business, management, marketing and related support services from Providence College. Katie Foster Senior Vice President, Head of Underwriting, United Wholesale Mortgage (UWM), Pontiac, Mich. Katie Foster has been in the mortgage industry since 1996. She was a loan originator for several years and has also run her own third-party processing company. Katie has been in leadership for 20 of the 23 years she’s been in the business. She has worked in underwriting for the last 13 years, spending time with big-name institutions like GMAC Mortgage, Chase and Flagstar Bank. Katie joined United Wholesale Mortgage as vice president of underwriting in 2013. She was promoted to credit policy manager in 2014 and then SVP, head of underwriting at the end of 2017. Katie now leads more than 1,200 of the best underwriters in the country for the nation’s top wholesale lender and number two overall lender. Twyla Hankins Executive Vice President, Operations, American Financial Network Inc., Brea, Calif. As a steadfast and resourceful leader, Twyla Hankins, executive vice president of operations is an integral member of Team AFN. Greatly attributable to Twyla’s leadership skills and more than three decades of solid mortgage lending experience is AFN’s perpetual growth and expansion as it reaches new heights of success year-after-year. Twyla has overseen total retail Operations for more than 25 years in her career and brings to the team a wealth of knowledge in all types of retail and wholesale lending, including conventional, FHA, VA, USDA, jumbo and non-QM. Twyla has an excellent reputation in the mortgage lending industry and has been recognized for her ability to put processes in place that maximize efficiencies and minimize turn times. Under Twyla’s leadership, AFN has experienced exponential

growth in its loan volume and net worth over the last ten years. August 2019 was AFN’s record-breaking highest volume funding month since it was founded in 2001. Twyla was instrumental in directing the customization of AFN’s LOS, building a compliance team, a postclosing team, underwriting teams, and operations centers in the corporate office and offices across the country. Twyla’s efforts and successes in operations goals and projects continually broaden AFN’s horizon. Kim Hoffman Chief Operating Officer, Envoy Mortgage, Houston, Texas As chief operating officer for Envoy Mortgage, Kim Hoffman is responsible for mortgage fulfillment, operations, on and offshore workforces, customer experience and service delivery. She has more than 25 years of experience in the mortgage industry, ranging from servicing, originations, compliance, private banking, operations, process improvement, technology and service delivery. She has spent the last 20 years having strategic oversight of mortgage operations with prominent industry organizations; including Sutherland Global Services, Morgan Stanley Home Loans and the Royal Bank of Canada. She holds a bachelor’s degree and completed a post graduate award in operations excellence, process design and service delivery from Warwick Business School. Kim also earned professional designations of Certified Mortgage Banker (CMB) and Accredited Mortgage Professional (AMP). Kim’s overall career success is attributed to her personal philosophy of developing strong relationships both professionally and personally. A strong believer in experiencing life, she regularly lobbies for internal campaigns to ensure employees are comfortable mentally and physically while at work to foster and promote sustainable lifestyles. In her free time, Kim is an experienced photographer, world traveler and can also be found on long bike rides across the country. Elizabeth Karwowski Chief Executive Officer, Get Credit Healthy Inc., Sunrise, Fla. Elizabeth Karwowski is the chief executive officer of Get Credit Healthy Inc., a fintech company that has developed a proprietary process and software which integrates with the lenders’ loan origination software and customer relationship management software, to re-capture lost leads. After graduating with honors from Northern Illinois University with a degree in business management, Elizabeth began her career at Ernst & Young, and then RSM McGladrey. In 2004, she left to start her own mortgage company, Trust One Mortgage Corporation. Viewing the mortgage industry through the lens of a broker allowed Elizabeth to observe the pain points of both lenders and consumers, prompting her to develop GCH360, the platform on which Get Credit Healthy operates. As a recognized credit expert, Elizabeth has been featured on NBC and Fox News, and has been published in Scotsman’s Guide and Today’s Chicago Women, among others. She received her FICO & Fair Credit Reporting Act certifications from the Consumer Data Industry Association in 2009. During the last three years, Elizabeth and her team of advisory board members from across various financial and technology sectors, have developed the new GCH360 platform to increase the number of applicants who qualify for the financial products offered by lenders and banks. Erica LaCentra Director of Marketing, RCN Capital, South Windsor, Conn. Erica LaCentra, director of marketing, is responsible for planning, developing and implementing RCN Capital’s strategic marketing plan. Joining the company in 2013, Erica’s efforts have rapidly expanded RCN’s customer base and elevated the company to a national brand. Erica handles the creation of the company’s traditional and digital media, the

National Mortgage Professional Magazine Presents …

Mortgage Banking’s Most Powerful Women 2019 management of paid search advertising, social media marketing and e-mail marketing, as well as the coordination of trade show sponsorships and event involvement. Erica holds a BS in advertising, with a minor in advertising design from Suffolk University. Suzy Lindblom Chief Operating Officer, Planet Home Lending, Irving, Texas Planet Home Lending’s Chief Operating Officer Suzy Lindblom is known for her ability to develop process efficiencies and identify areas for potential cost savings, while maintaining five-star customer service and keeping loan quality high. Before joining Planet Home Lending in 2017, Lindblom helped grow some of the best-known brands in the mortgage industry, including Stearns Lending, where she was managing director, national fulfillment and operations, leading a multi-billion, multi-channel business. During her four decades in the business, she has also worked at MetLife Bank, Bank of America, CitiMortgage, GMAC Mortgage Corporation and Countrywide Home Loans. Suzy serves on the board of directors of NEXT and has been an in-demand speaker at industry conferences in 2019, including NEXT, NAMMBA and the National Diversity Council. She has been named to the National Diversity Council’s Southern California 2016 Most Powerful & Influential Women list. Regina Lowrie Founder and Chief Executive Officer, Dytrix, Blue Bell, Penn. Regina Lowrie is a recognized national leader and authority in the mortgage banking industry, with more than 40 years of financial services experience. In 2005, Regina became the first female chairperson of the Mortgage Bankers Association (MBA), where she continues to serve on many committees. Regina has also testified before Congress on public policy to include GSE reform and has served as an expert witness for the financial services industry. Currently, Regina is president and chief executive officer of Dytrix, a fintech company that automates the process of validating wire transfers before closing, arming lenders with a comprehensive, real-time defense system against wire fraud. The Dytrix Platform includes wire/ACH transfer validation and closing agent management, helping lenders mitigate the increasing risks of wire fraud and disclosure of non-public information. Regina is also the founder and CEO of RML Advisors, where she serves the financial services industry as an advisor and consultant. Prior to founding Dytrix and RML Advisors, Regina served as president of Vision Mortgage Capital, a division of Continental Bank, and senior vice president of Continental Bank. She was also the founder and CEO of Gateway Funding Diversified Mortgage Services, a $3.2 billion mortgage banker. Amy Mahar Executive Vice President TPO, Sierra Pacific Mortgage Company Inc., Charlotte, N.C. As executive vice president of third-party originations, Amy leads all facets of Sierra Pacific Mortgage’s TPO channel. She joined Sierra Pacific Mortgage in 2019 with an impressive track record of success in implementing origination platforms, building successful brands and exponentially growing market share for national firms in third-party origination. Amy is a skilled strategist and is widely known throughout the industry as a visionary leader and a problem solver with an acute attention to the details. She is an innovator with a questioning mindset of “why not” and is passionate about transforming the experience for all within the mortgage ecosystem. Sierra Pacific Mortgage has a strong legacy in the TPO space, and Amy’s leadership is positioning the organization to accelerate growth and achieve great new milestones.

Jane Mason Chief Executive Officer, Clarifire, St. Petersburg, Fla. Jane Mason is the founder of Clarifire, chief executive officer and the original intellectual architect of an innovative multi-dimensional workflow solution that transcends numerous industries called after the same name, CLARIFIRE. These industries include financial services, healthcare and enterprise workflow. Jane has grown her company over the past decade into a thriving SOC 2 Type II Software-as-aService (SaaS) provider. Jane’s dedication to creating a true business solution for our time led Clarifire to being one of Cloud’s Top 500 Applications Vendors for the past two consecutive years. Jane has personally been honored with awards such as “CEO of the Year” from the Tampa Bay Business Journal and Tampa Bay Technology Forums, along with being named the entrepreneur of the year of the Gulf Coast. A University of South Florida graduate, Jane is a wellrespected community and industry leader. Jane’s competitive drive is honed on the tennis courts, while her compassionate side is nurtured during her family time. Ashlei McAleer Chief of Staff-Lending, Angel Oak Companies, Atlanta, Ga. Ashlei McAleer currently serves as chief of stafflending and is the senior general point of contact for Angel Oak Lending entities and with the Angel Oak Asset Management team. Her primary responsibility is to coordinate key initiatives amongst the lending platforms, asset management team and Angel Oak counterparties to ensure efficient operational execution. Ashlei is key leader of the Lending Services Division under Angel Oak Home Loans LLC. This division facilitates back-end operations fulfillment for Angel Oak lending entities, which include Angel Oak Home Loans, Angel Oak Mortgage Solutions, Angel Oak Prime Bridge and Cherrywood Mortgage LLC. This team has established and executed a whole loan trading and securitization platform for Angel Oak. Ashlei served as the managing director of lending services from launch in 2013 through July 2019. Previously, Ashlei was the senior vice president of operations for Angel Oak Home Loans LLC. Ashlei has more than 16 years of extensive experience establishing full-service operational platforms supporting multiple lending channels, retail, wholesale and direct to consumer platforms. This includes the development and implementation of operational infrastructure to support quality control and compliance initiatives. Ashlei holds a BS degree in management from the Terry College of Business at the University of Georgia. Susan Meitner President, Centennial Lending Group, Ambler, Penn. After 15 years originating loans, Susan Meitner set her sights on starting her own business. The path was uphill and bumpy at times, but by surrounding herself with smart, supportive people, she opened Centennial Lending Group (CLG) in 2010. Shortly after, she authored Crazy, Lucky Girl: Do You Have the Keys to Success? Through her book and speaking engagements, Susan shares the wisdom she gained to inspire others who dream of starting a business. After eight years of company growth, Susan decided to join forces with colleague, Owen Lee, president of Success Mortgage Partners Inc. This partnership allows CLG to continue down its original path at a quicker pace, enabling employees to utilize the latest technology, while still providing its high-level personal service. It also offers more customer resources, including more loan products, quicker turn times and faster closings. Susan sits on the Board of The Mortgage Collaborative, which offers education and networking opportunities to its lenders. She also serves on the board of trustees at Gwynedd

National Mortgage Professional Magazine Presents …

Mortgage Banking’s Most Powerful Women 2019

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Mercy. Susan has been awarded numerous honors including Philadelphia Business Journal Woman of Distinction, and Montco Happening List–Best Author (2015).

These meaningful relationships with like-minded originators from around the country have become a big part of her business, and life.

Salpi Meyer Senior Vice President, Sales National Correspondent Division, Plaza Home Mortgage, San Diego, Calif. Salpi Meyer is the senior vice president of sales for Plaza Home Mortgage’s national correspondent lending division. In this role, she is responsible for overseeing the sales, account management and strategic business development function of the division, as well as developing and maintaining primary relationships with correspondent clients nationwide. Salpi currently manages Plaza Home Mortgage’s $5 billion national correspondent division, serving more than 500 correspondent clients. Prior to joining Plaza, Meyer held a series of leadership roles with the correspondent lending division of Countrywide Financial Corporation, and later, Bank of America. She holds a bachelor of arts degree from UCLA.

Christina Pham President, JMAC Lending, Santa Ana, Calif. Christina Pham is the founder and president of JMAC Lending Inc., a mortgage bank based in Irvine, Calif. JMAC Lending has originated approximately 40,000 mortgage loans through its wholesale lending platform and has become one of the 30 largest wholesale lenders in the industry. Prior to forming JMAC Lending in 2007, Pham was a branch manager for Com Unity Lending (d/b/a JMAC Lending). During a 10-year period, her start-up branch became the largest branch for the company, originating 25 percent of the total origination volume for the company. Before joining Com Unity Lending, Christina was a vice president for LP California Mortgage, a Newport Beach, Calif.-based mortgage lender.

Jennifer Miller Branch Manager, Hancock Mortgage, Greenville, S.C. Jennifer Miller, founder of The Miller Mortgage Team and branch manager with Hancock Mortgage Partners, is a firm believer in “Dreams don’t work unless you do.” She entered the mortgage world by chance in 2006, but has stayed all these years by choice. Jennifer dedicates her time to working hand-in-hand with clients and real estate agents to help them reach their dreams. She attributes her boost in success over the past few years to being more authentically herself. Jennifer says, “Don’t try to be everyone’s cup of tea or you come off as inauthentic. Be true to who you are and people will love you more than ever. Being unapologetically you will attract more people with your mindset. Yes, you will lose some followers, but those aren’t the people that you want to be doing business with anyway.” Training has been an important part of Jennifer’s career. She teaches modern marketing courses to her agents, showing them how to get the best organic reach with social media. The large kickoff classes are held quarterly, she then follows up with a six-week small group series, covering Instagram, generational selling, business planning, time management and much more. Stacy Mohr, CMB Executive Vice President, Mountain West Financial Inc., Redlands, Calif. Stacy Mohr, CMB joined Mountain West Financial in 2006 as the head of the accounting department and is now executive vice president of capital markets. She oversees the capital markets, postclosing, servicing, and human resources departments. Her education and experience is primarily in accounting, finance and management. Stacy holds an MBA from California State University, San Bernardino and is a Certified Mortgage Servicer by the Mortgage Bankers Association. Katy Parsons Mortgage Advisor, Finance of America Mortgage, Portland, Ore. Katy Parsons has been a loan originator for seven years, and has made a significant impact on the industry during that time. Not only has she lead the charge with Mortgage Revolution coming back annually in Las Vegas, she has been instrumental in many other grassroots events starting. She believes that the fastest changes happen when originators are faceto-face, and goes out of her way to plan events whenever possible.

Kelsey Rauchut National Business Development Manager, AnnieMac Home Mortgage, Mount Laurel, N.J. Kelsey Rauchut is national business development manager with AnnieMac Home Mortgage in Mount Laurel, N.J. An awardwinning media expert, Kelsey was recognized by Mortgage Women Magazine as a “Women With Vision” 2019 Award Winner, and is a sought-after speaker. Kelsey is a mortgage and real estate influencer, social media master, and a personal development hunter, driven by faith. She is the host and creator of “The Inside Edge,” a podcast featuring industry leading mortgage and real estate experts. Kelsey can be seen on the Mortgage Marketing Animals “Loan Officer Freedom” podcast powered by Carl White, highlighting “Women in the Mortgage Industry,” and on Industry Syndicate’s “Mortgage X Podcast” with the number one downloaded episode. She takes an innovative approach providing new solutions for increasing monthly transactions for mortgage and real estate professionals nationally to thrive in today’s market.” Kelly Rice Branch Manager, Hancock Mortgage, Bourbonnais, Ill. Kelly Rice joined Hancock Mortgage in 2015, bringing with her more than 15 years of operations background 18 years in the mortgage industry. Combining her skillset with the love of providing exceptional service, Kelly is able to be the face in the field that others count on. This has led her to become the area’s trusted source when it comes to their financial needs. She places the needs of clients before anything else, and this mindset will be a huge part of her continued growth and success. Her efforts for supporting others doesn’t just stop with her clients though, this extends to her entire team of branches across the country and everyone surrounding her. Her social media presence focuses on encouragement instead of negativity, and her passion for her work is clearly demonstrated. Year-after-year, her goals are achieved by adapting to this foreverchanging industry and holding herself to a higher level of standards. Her management style is focused on being a true leader … one who leads by example. Kelly is a producing branch manager who doesn’t lose sight of her ultimate role, which is building a team in the right way.

National Mortgage Professional Magazine Presents …

Mortgage Banking’s Most Powerful Women 2019 Kimberly Ricci Regional Manager/Loan Officer, Hancock Mortgage, Stow, Ohio Kimberly Ricci serves as regional manager and loan officer for Hancock Mortgage’s Stow, Ohio branch. Kimberly has 30-plus years in the industry. “I have seen many changes in the industry, some for the good and some for the worse,” said Kimberly. “In everything that has occurred, I could not imagine not being involved with the mortgage industry. I continue to grow my share by tripling my growth. The Ohio markets were a challenge and have overcome different adversities. I started in banking at an early age, was involved in the secondary, working for big companies and had my own company for many years. I enjoy being a partner and calling my clients, real estate agents and affiliate friends. The team I am surrounded by at the office and at the corporate level is incredible, and we work together as a family to help our clients. I enjoy doing all loans and truly enjoy working with the VA to help veterans purchase homes.” Sheila Siegel President, Synergy Financial Group, Silverado, Calif. Sheila Siegel, president of Synergy Financial Group in Silverado, Calif., is a highly-regarded real estate lender and financial advisor with more than 25 years of industry knowledge and experience. She is well-known for her ability to get things done. She is a strong client advocate and works tirelessly for her clients’ best interests. She is highly experienced in successfully resolving a wide range of mortgage challenges and issues.

Marissa Vest Sales Manager, North American Title Insurance Company, Charlotte, N.C. Marissa Vest is sales manager with North American Title Insurance Company in Charlotte, N.C., and is a leading industry expert on land, title and mortgage closing cost calculations. She has consulted for dozens of mortgage companies and serviced and supported the expansion of title companies nationwide. She is a member of the sales leadership team, helping launch an industry-first, Predictive Title and Escrow proprietary technology, accomplishing a complete clear to close in under 60 seconds for more than 80 percent of the properties in the United States (for refinances), it is the only the title company offering this proprietary technology as a service.

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Kim Wolcott Regional Sales Leader-Washington, Academy Mortgage Corporation, Auburn, Wash. As a regional sales leader since 2017, Kim Wolcott leads Academy Mortgage’s Washington Region, one of our company’s top three highestproducing regions in 2018, with $790 million in total volume. Under Kim’s leadership, her region is on track to far exceed last year’s volume totals with a projected $1 billion in total production in 2019. Kim has been in the mortgage business since 1989, when she repeatedly sought out a position as a receptionist at a local lender’s branch and later became its branch manager. With Kim at the helm, this branch became and held the position of the lender’s top-producing branch in the United States for 13 years. Kim joined Academy Mortgage at the end of 2014, when Republic Mortgage became Academy Mortgage. She remains an active originator, producing between $24 million and $30 million annually on a team with her son, Kyle. This is unusual for upper-level managers in the mortgage industry, but important to Kim in order to stay aware and informed of the daily opportunities and challenges her team faces. Kim epitomizes Academy’s vision to “Inspire Hope, Deliver Dreams, and Build Prosperity” with her leadership, numerous acts of service and commitment to helping people achieve homeownership.

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Corey Trujillo Chief Maven, Synergy Maven LLC, Anaheim, Calif. Corey Trujillo has been in mortgage and real estate marketing for more than 15 years. She worked her way from a marketing employee at a national mortgage lender, to establishing and running her own company. She has negotiated and maintained lucrative contracts with Inc. 500 companies and delivers elegant, dynamic, future-focused marketing strategies that lead her clients to successful growth. Corey oversees a significant share of the hiring of in-house marketing staff for her client companies and embraces the opportunity to ensure diverse workforces within her professional sphere. She worked hard to open

doors and shatter glass ceilings in her own career and continues to do so for other women as she expands her business. Corey is the epitome of success, tempered with a strong sense of community responsibility. She uses her success every day to advance the goals of others. To those she has supported, mentored and set a standard for, she is truly a shining star in the business world.

OCTOBER 2019 n National Mortgage Professional Magazine n NationalMortgageProfessional.com

National Mortgage Professional Magazine Presents …

Mortgage Banking’s Most Powerful Women Roundtable Discussion

n addition to featuring our list of “Mortgage Banking’s Most Powerful Women” in this month’s issue, we also thought it would be a prime opportunity to hear from some of the industry’s most powerful women to share their perspectives on some pressing topics. Some of the words that came to mind when selecting our panel were “Pioneer, Leader, Innovator,” and we are proud to

present their thoughts on some of the industry’s hottest topics, from catering to emerging markets, to the Milliennial marketplace, to making in it a male-dominated profession. Join us as today’s female leaders in the mortgage profession share their thoughts in this exclusive feature in National Mortgage Professional Magazine.

Meet the panel

Dalila Ramos

International Speaker, Top-Selling Author, Coach, Podcast Host

Senior Vice President of Operations, Angel Oak Mortgage Solutions

Business Development Director, Planet Home Lending

Jen Du Plessis is the founder of Kinetic Spark Consulting, Black Fox Investments and Valor Home Solutions. She the Author of LAUNCH! How to Take Your Business to New Heights, and is also the host of first mortgage specific and top-rated Podcast “Stop Talking, Take Action, Get Results!” Jen has spent more than 35 years in residential mortgage lending and was ranked in the top one percent of loan originators in the U.S. for many years; as well as being ranked in the top 200 for four years. She is a selfproclaimed serial entrepreneur with extensive leadership and sales experience. Today, Jen is a highly-sought-after international speaker and coach (sharing the stage with the likes of Tony Robbins, Les Brown, Barbara Corcoran, Darren Hardy, Magic Johnson and many more) who specializes in creating lifestyle businesses to help “solopreneurs,” sales professionals, mortgage loan originators and real estate agents to multiply their results in record time, while maintaining a commanding and prosperous personal lifestyle. Jen has appeared on Good Morning America, Sirus/XM Radio, and Voice America Radio, and has been featured in such publications as The Wall Street Journal and The Washington Post.

Alysse Prosnick is senior vice president of operations at Angel Oak Mortgage Solutions, dedicating her time and expertise since August of 2015. Alysse has led many initiatives that have allowed Angel Oak company significant growth due to her commitment and dedication. When Alysse first started at Angel Oak, the company only handled broker business. She helped add substantial opportunity and growth by helping to create levels of correspondent lending offerings that has led to a significant expansion for the business internally and externally. Alysse has also spearheaded and implemented other initiatives, such as a TPO Connect Portal, eSignature technology, TRID processes, systems and compliance checks. She also worked closely with her team to open Angel Oak’s Dallas operations center. When she is not busy providing valuable leadership for Angel Oak, Alysse enjoys spending time with her husband and two children. She has become an indispensable part of the Angel Oak Mortgage Solutions team, helping the company become a leader in non-QM alternative loan solutions.

Dalila Ramos has nearly two decades of experience in the mortgage industry, and is the business development director for Planet Home Lending, where she helps build brand awareness and attract talent to the national lender/servicer. Previously, Dalila was the director of business development at the National Association of Minority Mortgage Bankers of America (NAMMBA). A Chicago native who is bilingual, Dalila also worked at Atlantic Bay Mortgage and Caliber Home Loans.

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Alysse Prosnick

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Jen Du Plessis

National Mortgage Professional Magazine Presents …

Mortgage Banking’s Most Powerful Women Roundtable Discussion

The roundtable

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issue. The issue is attracting people to see Have you faced any obstacles as a the great blessing this industry can female in a male-dominated profession? provide. I’ve had the pleasure of speaking Do you see a leveling of the playing and training at several local, regional and field? national conferences and companies. I see Jen Du Plessis: Absolutely. However, many initiatives in action, but it is only many of the obstacles were in my early helping a few of those in the younger years in lending. There were several “We’ve seen remarkable progress in the non- generations. The challenge will be in occasions when I was overlooked for a promotion with the reasons cited as “You QM market, and I’ve seen some great results offering compensation plans that attract would have to travel and knowing that you for loan officers who are targeting these less- people wanting long-term, challenging and profitable careers. have children, we felt it wouldn’t be a good served markets. The adoption of these new My daughter for example, who works for fit,” or “The job would require longs hours products for securitization has allowed a mortgage insurance company, was and we don’t want you to feel independent brokerage and correspondent extremely hesitant to jump into lending uncomfortable working alone in the office,” lenders to lead these markets and they are after watching me and my husband (also in all the way to “Tom was a better fit due to lending) go through so many financial his tenure,” when in fact I had more tenure doing very well.” trials. The thought of being in a full in the business and the company, and my —Jen Du Plessis, International Speaker, commission job was truly frightening. So production stats were better in several Top-Selling Author, Coach, Podcast Host many of us Baby Boomers have been categories. supporting our children, our parents and our ourselves that the Today, I have the confidence, tenure, and influence to write my last I wanted was for my child to take on a position that would own ticket to success. This was definitely something I had to have fluctuating income. Thankfully, in this case, it is working well learn to manage. I still see issues with equality today, specifically for her and for us. at conferences. There are still more men than women gracing the stages speaking about their success, while in fact, many women What are you doing to support and attract homebuyers in are outperforming men. I am honored and privileged to have emerging markets? helped pave the way for women now experiencing so much Alysse Prosnick: At Angel Oak, we offer a lot of support to our success. It was tough in the late 1970’s, and I am glad we are clients to make this happen. Our approved brokers really leaps and bounds ahead of those days. appreciate our free private label marketing materials. Clients are encouraged to invite us to speak with them at real estate agent Alysse Prosnick: Every leader faces professional obstacles. events on the non-QM product and share how the broker can Leaders also face unique challenges based on their individual grow their business. Technology is always a focus to improve and situation, which can include their gender, stage of life, market deliver easier and faster solutions. conditions, company history, differing personalities and a host of For instance, we have new technology offering an instant other items. These situations do not make the playing field review of the client’s ability to qualify for a non-QM loan that has unlevelled–they simply make it different. been a game-changer in this sector of the mortgage industry. We I identify business obstacles, create a plan to overcome them, also offer products that other companies do not offer, such as our and then work through the challenge to move forward to the next Bank Statement Program for self-employed borrowers. priority. Continuously educating the market, getting the message out about non-QM products and making it easier for our partners to Dalila Ramos: Some of the obstacles I faced were in my own quickly qualify loans will allow us to grow this market. mind. It’s hard to feel comfortable speaking up when you’re the only woman or the only woman of color in the room. Sometimes, Dalila Ramos: Planet Home Lending does manual underwriting it felt like my opinion and experiences were not valued, especially and has no overlays on FHA and VA because we believe when I was a young woman. borrowers are more than just their credit score. Government Today, I’m working for a company, Planet Home Lending, that home loan programs are an important route to homeownership for has as many women as men in leadership positions and is diverse Americans. By offering those programs from the entry-level through the C-suite. I exactly as Congress and the agencies know there’s a path for me to get to the Ccreated them, Planet Home Lending suite at Planet Home Lending because supports homeownership in emerging there are people like me there already. Our markets. We also have a renovation core values include finding strength in lending channel that supports our FHA diversity and empowerment, listening to 203(k) and VA Alterations lending. Those everyone regardless of title. programs make homeownership more “Every leader faces professional obstacles. With the average age of a mortgage Leaders also face unique challenges based on affordable and attainable by allowing professional as 50- to 53-years of age, their individual situation, which can include borrowers to purchase and renovate homes that might cost less because they what is being done to attract Millennials their gender, stage of life, market conditions, need updates. That channel does a lot of to the mortgage industry to replenish an company history, differing personalities and education both internally and externally, aging workforce? a host of other items. These situations do not including seminars for real estate agents. Jen Du Plessis: While I feel there have make the playing field unlevelled–they been great strides taken, the MBA’s What do you feel will be the big initiative to encourage internships and the simply make it different.” breakthrough product in the industry in NAMMBA’s long-term training and —Alysse Prosnick, Senior Vice President of 2020? leadership programs for all gender and Operations, Angel Oak Mortgage Solutions Jen Du Plessis: The pendulum swinging nationality categories, the support isn’t the

National Mortgage Professional Magazine Presents …

Mortgage Banking’s Most Powerful Women Roundtable Discussion

The roundtable us to be nimble and innovate to take back from the strict credit crisis era. We’ve advantage of market inflections and seen remarkable progress in the non-QM opportunities. When you work at a market, and I’ve seen some great results for growing, entrepreneurial company, your loan officers who are targeting these lesscontributions matter. I have access to an served markets. The adoption of these new incredible leadership team. products for securitization has allowed independent brokerage and correspondent “I know there’s a path for me to get to the Clenders to lead these markets and they are What are your feelings on the current doing very well. suite at Planet Home Lending because there state of the mortgage marketplace? I learned years ago, while working for one are people like me there already. Our core Alysse Prosnick: This year has proved to of the largest negative amortization lenders, values include finding strength in diversity be promising for homebuyers with low prior to everyone jumping into that market, and empowerment, listening to everyone rates, volume growth and slowing home without clarity of who the product was best regardless of title.” prices. This makes for a healthy market suited for, that having a unique, service—Dalila Ramos, Business Development and increased optimism among borrowers. oriented and profitable niche can be very Director, Planet Home Lending As a result, there is now more product lucrative. This is going to be one of the few innovation to continue to grow the market. ways companies will be able to differentiate This innovation is controlled to manage themselves … but it will require extensive product risks and maintain process sales and skills training, something the quality. The market is in a good place from a regulatory industry lacked prior to the credit crisis. standpoint, with a healthy level of oversight. Originators will need to learn the art of “Eduselling” over quoting rates. Additionally, the local relationship-driven lender will win over the Internet aggregators for loans that don’t fit into the traditional QM model. Those with the strongest relationships will have the opportunity to shine.

Dalila Ramos: Planet Home Lending has some advantages over larger companies. Because of our size and culture, it’s easier for

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Do you think larger or smaller firms have the potential for greater growth in 2020? Jen Du Plessis: I’m seeing the trend lean back to smaller firms having more traction in the market. With the expansion and depth of non-QM products reaching more companies, I’ve witnessed first-hand larger firms, banks and credit unions remaining comfortable with the products they are offering. There are some pockets of portfolio products from these companies that help them grasp a higher market share, but the offerings tend to be short lived. For example, one of my coaching clients who works for a small credit union, experienced a drop of 63 percent of her business—at a time when everyone is busy with lower rates and refinances—due to the elimination of a key product offered only by her company. The risk game is still alive and those that are willing to take more, may very well be the winners. With the compliance in place, QM or not, I don’t see the days of old creep back in the future of lending. We’ve learned that lesson. Another factor is the level of engagement employees experience is small companies. Studies show that 70 percent of employees who quit their jobs did so due to lack of engagement and community by management often experienced in larger companies.

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Alysse Prosnick: The Bank Statement Program for self-employed borrowers. Self-employment will continue to be a rising trend, with the growth rate exceeding faster than the percent growth rate projected for all workers according to the Bureau of Labor Statistics. Tax returns do not accurately show income due to tax write-offs making qualifying for a home loan challenging. Selfemployed borrowers rely on bank statements to purchase a home. In many instances, credit is good and the only issue is documentation. As the population of self-employed borrowers increases, the demand for bank statement loans will increase. I also think we will see a rise in the loans that exceed the conforming loan limits.

By Jonathan Foxx 44

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Social Media Challenges Question We are constantly monitoring our loan officers’ social media use. We train them from our written policies and procedures. I found out from a friend recently that Jonathan Foxx had written a White Paper on social media, so I went to your Web site and downloaded it. It was amazingly helpful, especially in outlining the compliance procedures! We used parts of it to update our social media policy. However, could you provide a synopsis on the areas of risk a mortgage lender could face as a result of its use of social media? Answer Thank you for reading the White Paper, which was published in the February 2013 issue of National Mortgage Professional Magazine, “Social Media and Networking Compliance.” You can download it from the articles page on our Web site (LendersComplianceGroup.com). This White Paper is as relevant today–perhaps even more so–than it was in 2013. Financial institutions tend to

use social media in a variety of ways, including marketing, providing incentives, facilitating applications for new accounts, inviting feedback from the public, and engaging with existing and potential customers. This electronic resource is sometimes utilized to receive and respond to complaints. Some companies use it to provide loan pricing. For the sake of brevity, I am going to use the acronym “SM” to refer to social media. SM takes many forms, including, but not limited to, micro-blogging sites (i.e., Facebook, and Twitter); forums, blogs, customer review Web sites, and bulletin boards (i.e., Yelp); photo and video sites (i.e., Instagram, Pinterest, and YouTube); sites that enable professional networking (i.e., LinkedIn); so-called virtual worlds; and social games. One way to distinguish SM from other online media is that communication tends to be more interactive. As a rule of thumb, consider messages sent through social media channels to be SM. There are several “areas of risk,” to use your phrase, where

SM attracts and interacts with customers. These areas can impact your organization’s risk profile, including the risk of harm to consumers, as well as various compliance, legal, operational and reputation risks. Generally, compliance and legal risks stem from the potential for violations of, or non-conformance with, laws, rules, regulations, prescribed practices, internal policies and procedures, or ethical standards. Of particular importance—and a never-ending challenge—are the SM practices used by employees. Training should involve making all affected employees aware that failure to comply with the financial institution’s SM policies and guidelines can expose it to enforcement actions and perhaps civil lawsuits. The big fear, of course, is a rogue employee not complying with an organization’s SM policy requirements. These days, more and more often, I see how SM is being used to market products and originate new accounts. To the extent that an institution uses SM to engage in lending, it must comply with applicable laws and regulations.

Let’s consider a few laws and regulations that may be relevant to your company’s SM activities with respect to residential mortgage banking. Fair lending laws The Equal Credit Opportunity Act, through Regulation B, prohibits creditors from making any oral or written statement, in advertising or other marketing techniques, to applicants or prospective applicants that would discourage on a prohibited basis a reasonable person from making or pursuing an application. However, a creditor may affirmatively solicit or encourage members of traditionally disadvantaged groups to apply for credit, especially groups that might not normally seek credit from that creditor. It is also important to note that creditors may not, with limited exceptions, request certain information, such as information about an applicant’s race, color, religion, national origin or sex. Since SM platforms may collect such information about participants in various ways, a continued on page 61

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T H E

S H R E D

M A R K E T E R

Building Awareness on Facebook for Less Than $2 a Day If you’re not doing this right now you are crazy By Jason Frazier

his year, I have been speaking at mortgage and real estate events across the country about this very topic. However, before I begin each discussion, I ask my audience to think about two things:

l l

First, awareness drives decisions. Second, whoever gets to the consumer first wins.

For this example and in honor of October, we are going to use pumpkin patches, and Halloween themed events. If you cannot find any information at all, this is a good thing. This means you have an excellent opportunity to grab the attention of your local market. Let’s start with the video. You will need to record a 60- to 90-second video, in vertical format, talking about the “Top 5” Pumpkin Patches or Halloween events in your market. This video will be posted to your Facebook Business Page, along with any relevant links in the post copy. Now, the next question I usually get is “What do I say?” And since we are being tactical, here is a quick script: “Hey everyone, I don’t know about you, but I love this time of year and always look forward to checking out our local Halloween events. I to let you know about the Top 5 [insert topic here] to take the family to this month. I have put the links to the [insert topic here] above this video so you can check them out directly. I would love to know what you think of my list. Did I miss anything? If I did would love for you to comment below with a link to the event so our community can check it out! My name is Jason Frazier by

the way, and I hope to see you at one of these places!” The next step is to post the video on your business Facebook Page and wait for 24 hours to let the Facebook algorithm do its thing. After that, you will then run a “video views” ad on that video. When you run the video views ad, you are not going to choose any demographic targeting at all. You are only going to select a 15-25 mile radius from the center of your market and run this ad for seven days at $2 a day. That’s it! This will be the most straightforward Facebook ad you will ever run. One important thing to note is that not a theoretical tactic. This is a strategy being used by loan officers in our mastermind group. Loan Officers will see an average of 1,300 views with a reach of more than 2,000 for less than $7 a week. You will not get a better cost-toresult marketing reach tactic that will build awareness of your brand. Pro Tip: If you want to supercharge the success of this strategy, write a blog post with all this information that you can send people to. A best practice is to have a blog integrated into your mortgage Web site so you can drive traffic there. Remember that, at the end of the day, the most critical marketing capital you can have is consumer attention. Once you have their attention and more importantly can keep that attention, you can start talking to them about other topics that are focused on mortgage.

Jason Frazier is the chief creative officer and co-founder of Shred Media. Frazier has more than 20 years of expertise in marketing, social media, technology startups and venture capital, holding various senior-level positions. A former mortgage executive, Frazier is widely considered one of the top marketers in the industry, being dubbed the “Mad Scientist” by industry icon David Lykken. Frazier is an awardwinning marketer, voice marketing evangelist, and a national marketing speaker, being the only mortgage professional to speak at major conferences in both real estate and mortgage. He currently hosts three successful podcasts, The Mortgage X, Shred X and Originator X.

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1. You need a Facebook Business Page 2. You need to have a phone that

records decent video 3. You need to do some legwork by finding out about what your market cares about, like local events 4. You need to have at least $2 to spend per day on a Facebook Ad

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Now, before I continue, I want you to write down what I said above. Doing this will help put you in the right mindset so you can truly take in what you are about to read. Right now, the mortgage industry is at a crucial crossroads when it comes to consumer attention. There has NEVER been more competition in our industry than there is right now. You have pretty much every major real estate brokerage with their own mortgage arm, fintech lenders and now Zillow. In short, the fight for consumer attention is on! Unfortunately, as an industry, we are losing this fight. Taking Zillow as the most recent example, there are precisely ZERO lenders that get as much Web traffic as them. Big Z gets a little under 200 million hits to their Web site each month, and their marketing focuses on what we call the “before and after state” of the consumer. Even in my own sphere, I have friends and family asking me if they should use Zillow to get a home loan. That should be a wake-up call to us all. This is why building awareness is crucial because, without it, you will have little success getting to the consumer first. You can be the best loan officer on the planet, have the best service and the best rates, but if the consumer does not know about you, it does not matter. Before you can tell me all of the great stuff you can do for me, you have to have my attention. How do you get that attention? In my opinion, a focus on interestbased content is going to be the silver bullet. It also has the added

benefit of being the only tactic where the online and fintech lenders and Zillow can’t beat us. We are part of the local community, and they are not, which allows us to be leaders on hyper-local content. But we need to remember that we HAVE to make our content about them and not us. Dale Carnegie famously wrote that consumers “are not interested in you. They are not interested in me,” in his book How to Win Friends and Influence People. “They are interested in themselves— morning, noon and after dinner.” Taking what Dale wrote to heart is where YOU can win with your content. At Shred, we call this our “3L Strategy.” Your content should be about what consumers “Like,” what they “Love,” and where they “Live.” Make your content about your audience’s interest, and you will have their attention. Here are my final thoughts on “The Why” before we get into “The How.” Getting consumers attention is the ONLY way to start them on the “Know You, Like You, Trust You” journey. Having their attention is the only way to create what my good friend David Greenspan calls “Mindshare.” If the consumer’s first instinct is to go to Zillow or their agent when they decide to start their homebuying journey, then that is going to be game over for a lot in the industry not named Quicken. Because attention is paramount, building awareness MUST be the foundation of all your marketing. Before consumers can want to work with you, they need to be aware of you. By now, I hope you all have the right mindset, get what I am laying down, and are onboard to learn some ways on HOW to build awareness. We are about to get tactical, so I am going to give you the play-byplay. To get the MOST success from this strategy, you need a few things which I will list …

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

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Mortgage Professional of the Month

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Robert Senko President ACC Mortgage By Phil Hall

obert Senko is president of ACC Mortgage, headquartered in Rockville, Md. For this edition of National Mortgage Professional Magazine’s Mortgage Professional of the Month, Senko offered insight into his career and his view of the state of the industry and the economy.

that always occurred and will continue to occur.

you had $25,000. I was in business shortly after my 26th birthday. I grew that business to as far as my limited experience could take me and then was acquired by a publicly traded firm, Island Mortgage Network. This turned out to be a disaster: This firm was cooking the books and using a warehouse line to fund the operation. I got away from that company as quickly as I could before they were shuttered by the FBI. I bounced around for a little bit and decided I would take all the lessons in my short career and set up All Credit Considered Mortgage. ACC Mortgage would focus on the underserved markets: Self-employed, minority, credit-challenged. I realized I could never compete with the big companies in the traditional conventional world. I also realized people did not value you or your company, they only focused on price. But non-QM lending allowed me and my team to offer a value proposition in the marketplace and I did not see myself being easily replaced in this market niche. I also saw through my limited career companies go from boom to bust. They became very bloated with overhead and could not ride out the eventual market correction

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What was the path that led you to the leadership of ACC Mortgage? Robert Senko: After the marketing firm shuttered, I decided I did not want to be in an industry that was the first level of business cut. Ironically, my boss was also considering a career change and brought me to a recruiting event that talked about selling term life insurance and mortgage products to save people monthly cash flow. It opened my eyes to the financial services world and with that, I moved back to the Washington, D.C., area and found a company in the classified section that was, “Willing to train loan officers call 301-555-XXXX.” They were

willing to train me for no pay and I was willing to learn. I cut my teeth as a loan officer and did fairly well with rates that dipped below seven percent for the first time in a generation. When rates spiked and the refi wave crashed down, I learned a good second economic and mortgage lesson. I was then approached by a good friend, Brian Dacy, to help develop a wholesale B&C platform. I had closed a few B&C loans during my tenure as a loan officer, but obviously had no idea how to develop a wholesale platform. But this small firm was willing to hire me–no salary of course, you only eat what you will, but it gave me an opportunity to learn and work with a friend. Coincidentally, Brian is now the director of national sales here at ACC Mortgage. We had some nice success and were acquired by an early pioneer in the B&C market, Cityscape. With the money I made working and stock options, I opened my first company Senko Financial Services, as a retail mortgage broker shop. Side note … the application to become a broker in Maryland was one page … no fingerprints, no testing, no continuing education and proof

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How did you first get into the mortgage profession? Was this your original career choice? Robert Senko: After graduating the University of Maryland with a marketing and finance degree, I started working in New York City doing marketing and sales promotions around the country. It was a great job for a recent college graduate, and I could see the country doing event marketing. We worked for big firms like Pepsi and Miller Beer, promoting products at radio station, bars, college campuses, halftime of NBA games, festivals, etc. I certainly learned early on the value of marketing and advertising. I also learned that during the early 90’s recession, marketing and advertising budgets were the first to get cut. That was a good economic and life lesson.

“Going back to the mid-90’s, I felt like the like the mortgage industry had a proper balance of products to support a growing economy. The market feels very similar with the growth of non-QM. Non-QM should not be the tail wagging the dog, but it should be an integral part of every loan officer’s product offerings.”

You’ve been at the helm of ACC for the past 20 years. Looking back, what do you see as the greatest accomplishments and what are some of the challenges that you faced over this time? Robert Senko: Aside from simply being able to survive for 20 years, which was a byproduct of the philosophy I employed from day one, I have a few accomplishments/decisions that make me proud. In 2004, I started lending my own money and selling loans in the secondary market. I saw some niches, found a market and risked my own capital. Like most in the mortgage industry during this era, a lot of money was made, so I wasn’t the smartest, richest or biggest, but I did have a lot of my money at risk. Leading up to January of 2007, I started hearing and sensing some capital market issues that reminded me of the late 90’s when Long Term Capital Management collapsed, and good companies seemingly shuttered overnight. On a gut feeling, I sold all of the loans in our portfolio, moved my personal wealth from stocks to cash and exited the private money business. Six weeks later, New Century collapsed, then came the days of the Implode-A-Meter and the daily news of companies closing. When the dust settled, all of these bigger, smarter companies were no longer around and ACC was alive with a healthy balance sheet, a new business partner and no debt. We were ready to lend again. I am also quite proud that the U.S. Treasury deemed ACC worthy of the Community Development Financial Institution (CDFI) certification. This is a very noble subsection of the Treasury that supports underserved markets though out the United States. The process to get approved took almost a

national mortgage professional magazine’s

Legends of Lending Quicken Loans Mortgage Services By Rick Grant

hen someone mentions “Quicken Loans,” many think first of the largest direct mortgage lender in the country. Those that have financed a home through the company will probably smile, based on the company’s industry-leading rankings in the annual J.D. Power client satisfaction survey. Or perhaps they may think about the creator of Rocket Mortgage, the brand that did more than any other to advance the industry toward the digital mortgage and that convinced a new generation of home loan borrowers that getting a mortgage didn’t have to be all that difficult a process. But only very successful third-party originators are likely to think first of Quicken Loans Mortgage Services (QLMS), the third-party origination side of the Quicken Loans business. I say most successful because company data suggests that brokers who worked with QLMS grew their businesses three times faster than those who did not over the past 12 months. To find out why—and to let them know that they were this month’s Legend of Lending—I called upon Austin Niemiec, executive vice president at QLMS, for some more detail. What he gave me where the top three reasons more brokers are working with his firm than ever before, why the company thinks this is very good news despite its success in the direct channel and what third-party originators should be thinking about right now.

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Three reasons QLMS is winning in wholesale Quicken Loan’s TPO business serves banks and credit unions on the correspondent side and brokers through wholesale lending. The company helps its partners originate, underwrite, process, fund and close the loans they sell—assisting smaller businesses all across the country. Quicken Loans launched QLMS in 2010. At about the same time most other big loan originators were leaving the third-party channel, Quicken Loans was moving in. It turned out to be a good strategic move. “We have earned these relationships by virtue of our unique position in the market,” Niemiec said. “It’s our experience and because of the unique value adds we provide to small business owners.” Specifically, Niemiec is talking about three key benefits QLMS delivers to its origination partners: Product “We give them a robust and a very balanced menu of products and pricing to sell,” Niemiec said. He pointed out that many lenders have opted to narrow their product focus, becoming strategically focused on a niche. While this has worked for wholesale lenders in the past, Niemiec says now is the time to offer a broader mix of options to home loan borrowers. QLMS offers all of the agency product and the government-insured loans through FHA and VA, along with jumbo loans for higher balance mortgages. He says the

about a day. “We give them an account, access to our portal and then we Rock ‘n’ Roll,” he said. We can go from ‘Hello’ to ‘Approved’ within 24 hours.” Niemiec said the company’s momentum in regard to approving new partners has been great for the firm. At the beginning of 2018, he said QLMS was working with about 2,400 approved partners. Today, the company is working with about 6,000. “Brokers are doing a great job of leveraging our product, pricing and technology,” he said. “It’s catching on like wildfire.”

company’s interest rates are competitive, making it easier for brokers to get and keep the business. Process “We’ve been doing this for almost 35 years,” Niemiec said, “so we have a process that’s very dialed in.” He says QLMS can close extremely fast and do it while taking much of the heavy lifting off of the brokers, including many of the vendor items such as homeowners insurance, payoffs and income verifications. QLMS also gives its partners visibility into where the vendor items are in the process, through its portal, so partners are never in the dark. Niemiec says his firm takes on a lot of the origination and processing work that other lenders won’t.

—Austin Niemiec Executive Vice President Quicken Loans Mortgage Services

numbers back that up. But is that really enough of a reason for a company as big as Quicken Loans to spend its resources on the wholesale channel. I wasn’t convinced. So, Niemiec reminded me of where the company came from. “Much of the reason springs from the fact that the broker business is core to our DNA,” he said. He reminded me that the company started as a brokerage back in 1985. It was just Dan Gilbert and his brother, making loans in metro Detroit. “We’re not some company with a hundred year history as a big bank with a board of directors sitting in some building in New York,” he said. “We’re still a privately-held company that was started by entrepreneurs who were out there building relationships with Realtors and going into folks’ homes to close loans at their kitchen tables.” That entrepreneurial spirit is still at the core of what the company does today, Niemiec told me, and that wasn’t going to change. Getting started with QLMS Niemiec says that brokers who want to start a new relationship with QLMS will find it very easy to do so. “We have a very strong team here that goes out and builds relationships with brokers, banks and credit unions,” he said. “But folks can always just give us a call. Our partner development team will talk to anyone that calls about partnering with us and will walk them through the process. It’s very simple.” Like other wholesale lenders, Quicken has an approval process that any new broker partner must work through in order to start brokering loans for the company. But unlike other lenders, QLMS can approve a broker and get the onboarding/training started in

51 Niemiec said brokers should use the money they are making now to hire and build their teams or to invest in better technology or more strategic marketing. In this “era of abundance, you should really double down on your business and go all in,” he said. Part of that work will involve partnering with wholesale lenders, which Niemiec said should include more than just QLMS. Another surprise for this old reporter. Competition is a key element of the entrepreneurial mindset, he told me. Brokers need to make sure they are partnering with many lenders so they can offer their borrowers the most choice. “One of the biggest advantages of being a mortgage broker is that brokers have choice,” Niemiec said. “Brokers with limited choice lose power.” QLMS is happy to bring more competition to the industry because Niemiec says competition drives companies to be better, to enhance their technologies, and to provide competitive pricing. All of these things are good for the broker. “I would urge all brokers to go out there and partner and get choice,” Niemiec said, which may be one of the best reasons to make sure that QLMS is one of your choices.

Rick Grant is special reports editor for National Mortgage Professional Magazine and Mortgage News Network. He may be reached by phone at (570) 497-1026 or e-mail RickG@MortgageNewsNetwork.com.

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A team that is stronger together This may be surprising to hear from a mortgage lender that originates billions in loans by working directly with clients. In fact, I told Niemiec that I was surprised a lender the size of Quicken Loans would even be in the wholesale business. Niemiec educated me. “We have a slogan, if you will, that is simply ‘Stronger Together,’” he said. “But it’s not just a slogan. It’s really what we believe and it’s how we define our relationship with the brokers.” Niemiec says Quicken Loans, by virtue of its size and industry experience, brings a lot to the table, but he said it can’t do what brokers do. “Brokers do just amazing things in their communities,” he said. “Their relationships with Realtors are great. They’re amazing at tying threads together to help folks in their communities and when we can free up their time so they can do what they do, it’s great. That’s how we combine our strengths.” Niemiec maintains that when the broker’s strengths are combined with QLMS’s resources it leads to tremendous growth. His

“We have a slogan, if you will, that is simply ‘Stronger Together.’ But it’s not just a slogan. It’s really what we believe and it’s how we define our relationship with the brokers.”

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Technology And this one is probably a no-brainer for most readers of this publication. Quicken Loans has invested heavily in its technology and Niemiec says the company shares much of it with its third-party originators. “We’re nearing 2020 and technology has become ingrained in this industry,” Niemiec said. “We’re a technology leader. The technology that we’re able to provide is second to none.” The company offers its partners “Guru,” a multimillion dollar piece of origination technology that Niemiec calls “a Google for mortgages,” and another called “The Answer,” that can interact with brokers, answering their questions and responding to very complicated queries. All of the tools the company makes available are designed to help originators find the right product for each client, and get more loans approved then they would have otherwise. Niemiec says it’s working. The bottom line, according to Niemiec, is that his company’s size and experience allows them to do for brokers what no other lender in the country can do. And that’s good news, he said, because Quicken Loans needs the broker.

What brokers should be thinking about now When asked what Quicken was advising its TPO partners to think about today, Niemiec didn’t hesitate. “The biggest piece of advice we’ve been giving brokers over the last couple months is to invest in their businesses now,” he said. Loan originators are doing a brisk business now as rates are low and home values are high. “Folks are buying homes,” Niemiec said. “Many brokers are doing twice as much business as they were last year.” Niemiec says that human nature may lead many to take their foot off the gas a bit and cruise through this period of good fortune, but he says that would be a mistake. “Invest in your business right now, while times are good,” he said. “Don’t just focus on keeping up. Focus on the long term. Even when you’re busy, you have to spend time building better processes.”

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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

The Mortgage Market Is Shifting: Why You Should Adapt recently attended the Digital Mortgage Conference and had an opportunity to speak with a lot of leaders in the tech space. There are shifts happening in the mortgage marketplace, and they’re pretty seismic. Consumers have shunned the olden ways of filling out paperwork and sending documents over a fax machine in favor of using apps and esignatures. Borrowers aren’t interested in working with the stuffy mortgage banker in a suit and tie … they want to do business with the in-touch lender who’s front and center, savvy and smart and doesn’t speak industry jargon. Love it or hate it, the seas of change are roiling in our industry, and any business that hopes to remain relevant ought to adapt or risk slipping into extinction. What does this change look like? Let’s start with the shifting demographics in housing.

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Millennials buy in Despite the years-long chatter that Millennials would eschew homebuying to stay in apartments, young adults under the age of 36 are buying homes, and they’re doing it in quicker numbers than ever before. At 34 percent, Millennials, the country’s largest generation, made up the largest group of homebuyers in 2016, according to the National Association of Realtors (NAR). As rental rates continue to rise, Millennials are taking cues from their parents and finding homes where they can settle down, start families and build equity.

Skeptical? Then, take note of a study from Ellie Mae earlier this year which shows that 84 percent of the home loans closed at the beginning of 2017 went to mortgages for Millennials. Millennials aren’t just craving homes of their own—they’re on the cusp of emerging as the most influential force in the housing industry (TransUnion estimates that 17 million first-time homebuyers will enter the housing market in the next five years). That means endless opportunities await mortgage lenders that understand this generation’s wants and needs. Spare the trees Another facet of change in the mortgage industry is technology. Gone are the days when borrowers were willing to trek to a bank, sit down with a loan officer and spend hours combing over a 500-page loan application. Nowadays, in the age of Amazon, customers want speed and convenience. They want to apply for mortgages online, which is the same way they want to search for homes. Savvy mortgage companies are partnering with Silicon Valley developers, such as Roostify, to develop mobile apps and other products that make applying for a mortgage easier. They’re developing products that meet customers where they are, and make applying for a mortgage accessible and less of a hassle. Diversify your C-suite There’s also a shift happening in the workplace. More than ever before, diversity is essential to recruiting and retaining top talent.

Plus, it helps lenders establish trust with consumers. The Consumer Financial Protection Bureau (CFPB) earlier this year released a report examining why diversity in the mortgage industry is paramount. In part, it said that diversity creates space for perspectives that challenge “group-think” among people with similar backgrounds. It helps companies tap into new market segments and develop innovative financial products that meet the needs of customers across multiple demographics. And more diversity, at the executive and operations levels, lessens the chance a mortgage company will make tone-deaf statements that offend members of certain communities—a boon for any organization in the age of social media. Company leaders must shift their thinking and stop treating diversity as an industry buzzword that indicts or perceive it as an excuse for employees to bring up uncomfortable topics. Diversity is simply good business. Join the shift I know this because I’ve seen it work. Each year, NAMMBA (which stands for the National Association of Minority Mortgage

Bankers of America) hosts a conference, dubbed “CONNECT,” to bring together some of the biggest and brightest players in the mortgage space. The three day gathering in Atlanta, April 22-25, 2020 helps mortgage bankers of all types learn from some of the best, and leverage networking opportunities to take their business to the next level. NAMMBA’s upcoming Conference next April features a who’s who of mortgage industry innovators, including tech companies like Tavant, Snap Docs, Roostify, Total Expert and many more to help attendees understand how to leverage technology as a competitive advantage. Both are prime examples of the shift that’s happening in the lending space: it’s no longer an industry run by White men for White men. The U.S. Census Bureau projects that by 2044, the nation’s minorities will become the majority, and rise to 56 percent of the total population by 2060, versus 38 percent in 2014. As the country’s racial makeup changes, so will the demographic makeup of homeownership. The mortgage industry should embrace and adapt to that change

J. Tony Thompson III, CMB is the founder and chief executive officer of the National Association of Minority Mortgage Bankers of America (NAMMBA), an organization dedicated to increasing the engagement of women and minorities with the Mortgage Bankers Association (MBA) 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.

SIERRRA PACIFIC MORRTGAGEEE’SS LEADERS AND N INNOVAATORS Sierra Pacific Mortgage e Banking’s Most Powerful W Wo ome en

Amanda Coffrini

Amy Mahhar

Angeela Sykes

Director of Third-Party y Origination Support

EVP - Third Party O Origination

VP - Diviision Manager Southern California

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Alison Fetherolf Regional Center Manager

Lizz Collins

Mary Lee

Toni Yoast

Vicki Bonardi

Directorr of Correspondent Lending

VP - Diivision Manager East

Regional Sales Leader

Director of Human Resources

Chief Compliance Officerr

Sie rra Pacific M o r tg a g e is excited to reco g nize so m e of o u r o uts ta n din g a n d m os t infl u e ntia l fe m a l e l ea d e r s of 20 19. T h e se seasoned executives have each demonstrated a strong commitment and dedication to excellence with insightful innovation and professional creativity. We th t ank them for their achievements and guidance, notably connecting with our belief that homeownership is for ever yone.

sierraapacificmortgage.c icmortgage ccom • 916.9 916 932.17 2 170 00 ©2019 Sierra Paciﬁc Mor tgage C ompany, Inc. N M L S # 178 8. ( w w w.nmlsconsumeraccess.org ) Equal Housing Lender. F OR I ND U S T RY U SE ON LY. NOT F OR C ON S U M E R U SE. DO NOT DI S T R I B U T E TO C ON S U M E R S. T h i s i s n o t a c o mmi t m e n t t o l e n d .

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Carolyn Watts

Addressing Post-Housing Crisis Issues

A Plan to Make Homeownership an Option for Every Client an MLO Connects With BY PAM MARRON ow many loan originators have spoken with clients they’ve been unable to help and had no option to offer them? Now there is an option. And real estate agents are going to like this, too! In fact, this plan involves an option that has been right in front of us for years and most of us were not aware of it. The plan is to connect loan originators and real estate agents with a U.S. Department of Housing & Urban Development (HUD)-approved housing counseling agency (HCA) that can provide specific assistance needed for challenged clients. HUD Approved Housing Counseling Agencies across the U.S. can be found by going to https://apps.hud.gov/offices/hsg/ sfh/hcc/hcs.cfm. A map of the U.S. opens where you can pick the state first. At the top left of this page pick “Click here to narrow your search” which directs you to entries that include Agency Name, City, Specific Zip Code, Language and a Counseling Service dropdown.1

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Credit help The most common service needed for clients is help with credit (and NO, this does not mean credit repair). For more indepth credit help, pick “Financial Management/Budget Counseling” from the dropdown of “Counseling Services.” Housing counselors don’t do credit repair. They assist the client to correct credit and don’t apply a dispute that merely hides credit. They

can also assist clients who need to get student loan payments in line with current income and can help build credit for clients with thin credit files. Budgeting for a home Budgeting, one of the top three services that clients need help with, is already included with financial management. This service is popular with younger Millennials who often are experiencing the costs of a home purchase for the first time. Downpayment assistance (DPA) Though this entry is not provided on the “Counseling Service” dropdown, many HUD housing counselors are aware of guidelines for surrounding city, county and state DPA programs. In addition, guidelines for wholesale DPA programs are being introduced. Wholesaler DPA programs are usually still available even when city, county and state funds are not. No Action Letter (NAL) Issued to HUD Housing Counseling Agencies (HCA) by the CFPB for Certain Fee for Service Arrangements My last article (see page 46 of the September 2019 issue) noted the biggest concern of this plan was writing a memorandum of understanding (MOU) correctly to ensure that a steering issue under RESPA was not an issue. On Sept. 10, 2019, the CFPB issued a No-Action Letter (NAL) to HUD housing counseling agencies that states that the Bureau will not take supervisory

or enforcement action under RESPA against HUD-certified HCA’s that have entered into certain fee-for-service arrangements with lenders for pre-purchase housing counseling services.2 This pilot plan involves a feefor-service paid upfront by the referred client. But an MOU is signed between the HCA and the referring loan originator or realtor to provide a credit for the ”paid upfront HCA fees” back to the client at their home closing. The client is not bound to the real estate agent or loan originator. However, the credit is only provided by the referring loan originator or realtor that signed the MOU if the client returns to them. Awareness of how housing counselors can help assist and speed up a client’s ability to buy a home is already producing positive results. Clients are getting needed help quicker from housing counselors whose main job is to help clients into homeownership. Attention to help with credit issues is successful sooner when housing counselors trained to provide in-

depth credit help are also able to follow up on tasks with clients quickly. And talk about a benefit for loan originators! What real estate agent is not going to take your phone call when you are helping them to help challenged clients get ready for a mortgage? The connection is not only between the housing counselor and the loan originator, but also to the real estate agent. The ultimate benefit is that the client has a whole team working to assist them into homeownership. And here’s the best benefit of all for a loan originator … you now can provide an option to get help for ALL clients! Give your challenged clients, no matter what their income level, the opportunity to work with a trained housing counselor to get them “mortgage ready” in return for your credit back to them for paid-upfront housing counseling costs. The connection is a timesaver for you, ensures a continued connection to referring real estate agents and grows your source of future business. Stay tuned.

Footnotes 1—Narrow your search directs to bottom of page. Selections for service needed are in dropdown next to Counseling Services (https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=FL# searchArea). 2—CFPB Issues Policies to Facilitate Compliance and Promote Innovation | Sept. 10, 2019 (https://www.consumerfinance.gov/about-us/newsroom/bureau-issues-policies-facilitatecompliance-promote-innovation).

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

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It wasn’t the abundance they were hoping to find, but it was enough to keep their small family alive—at least until 1959. That was the year his mother found out she was pregnant with Barry.

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Humble beginnings provide fuel for future success “That was the year things really got interesting for my family,” Habib says. When his mom got pregnant she was nearly 40-years-old. His dad was 57. They were barely making ends meet with two young kids to feed. Now, they had a baby on the way. “They considered abortion, and I can understand why,” Habib admits. “It must have been so scary facing those unknowns. My mom didn’t know what to do. I don’t begrudge my parents thinking about such a drastic alternative. Fortunately for me, abortion was illegal back then. I am just thrilled to be here!” Habib credits the fact that he knows what his parents were considering with his drive to achieve. “Maybe this is part of the reason why I feel like I need to do more with my life?” he said. “I almost wasn’t! I’m on bonus time. Life is truly a gift!” It certainly was a gift during Habib’s early years. Children don’t often realize how poor their families are, at least not at first. But by the time Habib was 11, he was the family’s primary translator, reading the mail and facilitating negotiations with teachers, landlords and shopkeepers. “My mother was a very intelligent woman, but English was not one of the six languages she spoke,” he said. “As I translated for her, I hoped I was doing a good enough job. I remember going through the mail and being a little overwhelmed at needing to figure out what all the adult writing meant.” That was a lot of pressure for an 11-year-old kid, Habib recalls. But after handling each business interaction for his family, he felt his confidence grow. One day, something happened that would change Habib’s life forever. He recalls following his mother up the two flights of stairs to their Brooklyn apartment. As she reached their door her paper grocery bag ripped open, spilling the family’s food. She broke down. “She was crying and I heard her say, ‘We came because the stories

TV analyst Barry Habib on FOX Business

about America, so rich there was money in the streets …’ I felt so helpless.” But he wouldn’t stay that way. The beginnings of an empire Habib learned to sell and made hustle a part of his normal routine. By the time he had his driver’s license, he was selling stereo equipment out of the trunk of his car. He was making decent money, but then noticed New Jersey real estate values. He got an idea. “I got a group of family and friends together, we pooled our money and bought some real estate,” he said. “We were buying, flipping contracts, renovating properties and renting them out. Then one night I sat down with a guy doing my mortgage and I saw a bigger opportunity.” Habib says he took to the

mortgage business like a fish to water, despite the fact that the early days were difficult. He was young and nobody wanted to give him their loan. But he knew how to talk to people. His earlier entrepreneurial efforts had taught him that. So that’s what he did. “By my third week in the business, I went out and started knocking on people’s doors,” he said. “Believe it or not, I just asked if they wanted to do a loan. In that third week, I wrote 16 loans.” But he didn’t stop there. Habib realized that anyone he patronized, literally anyone he handed money to, was a prospect. Better than that, they were a captive audience. “So any place where I was a customer, I had their ear and I told them what I did,” he said. It worked. He started getting two to three deals each month

Barry Habib with his wife Toni Habib and former U.S. President George W. Bush

from the guy who cut his hair. The woman who sold him pizza, who could barely speak English and knew him as ‘El Presidente,’ sent him business. In one year, his accountant sent him $33 million worth of mortgage transactions. Even driving down the New Jersey Turnpike was an opportunity to build his mortgage business. “My friends used to hate this, but I never dropped my change in the automated lane, I always drove through a toll booth,” he said. “I’d hand the operator the exact change and my business card.” His friends gave him all kinds of trouble for this, complaining that he could never get anywhere on time if he had to take the Turnpike. But then a guy named Steve who worked for the Triboro Bridge and Tunnel Authority called him for a loan. Habib wrote him a loan. And then wrote loans for 17 of his co-workers. There were no dollar bills blowing down the Turnpike, but there was something even better: opportunity, and Habib knew it. “Opportunity is all around you,” he said. “You just have to know how to pick it up.” Taking the mortgage transaction to the next level During the 90s, on his way to $2-plus billion in personal originations, Habib was named top originator in the country, twice. He started his own brokerage in 1989. That was tough. He recalls waiting for the mail to arrive to see if he would make payroll. But he kept at it. He began to write about the mortgage business and his idea, The No Cost Refinance. CNBC picked up some of his articles and eventually give him an interview, which he converted into his own show. It ran for 13 years. This put him on the speaking circuit and his platform continued to grow. “I always felt that education was really important,” Habib said. “Most people just wanted to understand the business well enough to get loans done. I took it a step further. I looked at the mortgage in a much bigger way.” He started counseling his clients to think of their home loan as a way to create wealth. The transaction touches everything, cash flow, equity, taxes, every aspect of the borrower’s financial life, he said. He helped his clients see this. “A mortgage is so important and should be part of your financial plan, not a commodity” he told them.

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Barry gets behind the mic with the Rock of Ages band

Baldwin, Russell Brand, Bryan Cranston, Mary J. Blige and Tom Cruise, among others. “Life is about relationships,” Habib says. “They build not because you ask, but because you give.” Living his philosophy Habib would roll some of his Hollywood success into a new medical imaging company that provide pre-cancer screening. But unlike other clinics in that line of work where patients would have to wait days or weeks after a test to know the results, Habib hired specialists who would discuss the results right then. If it was good news, it saved the patient from worry. If it wasn’t, at least they left the clinic with a plan. It was a highly successful model, which he built up and then sold. Something, he says, was pulling him back to the home finance industry. “I was able to spread my wings a little bit and do some fun things,” he said, “but ultimately I came back to what I was doing before. I’m so proud of this business and what we do and how we help people and how a lot of people rely upon us.” Habib launched MBS Highway, the company he runs today. “We try and take things that are complicated and make them easy to understand,” he said. “But we also try to see the future before it

becomes obvious.” Looking back over Habib’s career, the ability to forecast the future has been a common thread holding everything together. He says it’s just a matter of “being in tune with what’s happening in the marketplace and looking at a very, very big picture.” But that model breaks down when I ask him about his own future. “Well, it’s a lot easier talking about the future of the industry,” he laughed. “Who the heck knows?” One thing Habib does know is that he won’t quit. “I don’t know if I’m the kind of person that would ever think about retiring. That’s probably not me,” he said. “As long as I have the ability to continue to make a difference and to add value and do things that are meaningful, I will. We’re growing and we’re adding new tools and new things every day. I love those challenges. I love what we’re doing here.” In the process, his company is turning mortgage professionals from salespeople into advisers. “You can literally change somebody’s life if you’re able to handle their finances,” he said. At MBS Highway, he’s empowering mortgage brokers to do that, to be the heroes their borrowers need. To be what Barry Habib has always been. Which is exactly what you would expect a brother to do.

Rick Grant is special reports editor for National Mortgage Professional Magazine and Mortgage News Network. He may be reached by phone at (570) 497-1026 or e-mail RickG@MortgageNewsNetwork.com.

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A break from the home finance business By 2006, Habib’s business was doing well. He was a well-known figure in the mortgage business, but he was starting to feel uneasy. “I didn’t like the way things were headed at that time,” he recalls. “I saw lending standards that didn’t make sense to me anymore for the mortgage business.” That’s when Habib put Mortgage Market Guide up for sale. There were plenty of takers. He sold out

at the top of the market after bidders went to war for his company. Six weeks after the closing, the market crashed. “I was very lucky,” Habib said. Instead of rolling that luck back into the home finance business, Habib says he took a break to do “some fun things.” Habib had always been willing to take a side trip if it promised to be interesting for him. It’s part of his DNA to try almost anything, it seems, to never turn down an interesting opportunity. That’s how he ended up talking home finance on CNBC. One day he got a call from a producer working on a film who told Habib he had heard his show and liked his voice. He asked if he’d like to be in a movie. You can guess what his answer was. He ended up being Colonel KaBoom in the children’s movie “Nic & Tristan Go Mega Dega,” released in 2010. He said he felt a bit like Captain Crunch, but it was a start in Hollywood and earned him his Screen Actors Guild (SAG) card. He was a player in a new game. And he did what he always does: Talk to people. He ended up interacting with an entirely new set of folks, one of whom was Chris D’Arienzo, the writer of the Tonynominated hit Broadway production Rock of Ages, that Habib would produce. Less than two years after appearing as a comic colonel in a kid’s flick, Habib was co-producing a Hollywood movie based on the successful Broadway musical. And not just that, he also acted in the film, which also featured Alec

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“Others fought over rate, while I put my client’s kids through college and managed their debts.” As his platform grew and he achieved greater success, more people were asking him where rates would go. So he told them. Very often, he was right. This gave him another idea. Whenever mortgage rates moved before the originator locked the rate, the deal would change and the borrower would be presented with a higher interest rate. This was annoying consumers and costing loan originators business. He sold his mortgage brokerage and started another business. Habib launched Mortgage Market Guide to solve that problem by helping originators gage the market and anticipate its changes. It removed a source of friction and kept brokers from getting hammered by market moves. His company became the largest firm in the industry providing advice to loan originators to help them decide when to lock and when to float. He grew the business to 30,000 subscribers.

Barry Habib with the cast of Rock of Ages during rehearsals

Independent Mortgage Originators By Andy W. Harris, CRMS

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Matthew Cole United Wholesale Lending NMLS#: 633188 NMLS#: 253083 ILendSac.com This month, I had a chance to speak with Matthew Cole of United Wholesale Lending in Sacramento, Calif. Matthew has been in the industry just shy of 20 years and may be reached by phone at (530) 682-4092 or e-mail Cole@UWLMortgage.com. Tell us a little about yourself and your career. Matthew Cole: I have been in the mortgage industry just under 20 years and 85 percent of my business is purchase lending. I have a family of eight, with kids ranging in age from under one to 22-yearsold. I like to do whatever it takes to win business, and would rather make $5 on a loan then $0, as long as we are earning the business.

What are you seeing in your local market in terms of trends, inventory and consumer/Realtor mortgage education? Matthew Cole: Rates are absolutely insanely low. Inventory is still low, but I partner with amazing agents who seem to still find their clients the best homes at great prices, regardless of the tough market they face. I know the myth of losing control as a mortgage broker is finally being exposed to the market and quite the opposite. What are your experiences on controlling the process? Matthew Cole: The BIGGEST scare tactic these banks/direct lenders have to hang their hats on is to not lose their employees. It’s a matter of time before they convert, and the longer they wait, the more money they are losing for their families. What would you say are your best forms of marketing today to generate new business? Matthew Cole: Come work with me and I’ll let you know this info … I am always looking for top-notch lenders/Realtors who want to make $1 million!

I understand you are a mortgage broker now after previously working as a mortgage banker. What motivated you to make this change? Matthew Cole: I was motivated to believe in myself and my capabilities and to depend on what I can do instead of depending so much on the direct lender/bank and then having them take half or more than half of my commission to do so what I can do myself. That is primarily why I made the switch. What would you say so far are the biggest differences you’ve experienced coming from the retail side? Matthew Cole: One of the biggest differences is seeing how much more I earn per loan. The process for a loan, no matter the type, is all the same, and at the end of the day, I gave myself a MASSIVE pay raise to offer my clients the same or even better service. How would you compare pricing when compared to the mortgage banker world? Matthew Cole: We can CRUSH anyone of them on any given day. Let me prove it to you!

Are you an Independent Mortgage Broker? Do you have something you’d like to share? Reach out to me at AHarris@VantageMortgageGroup.com for future article considerations. Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and Past President of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 4960431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

COMPLIANCE MATTERS continued from page 44

Real Estate Settlement Procedures Act Section 8 of the Real Estate Settlement Procedures Act (RESPA) prohibits certain activities in connection with federally related mortgage loans. These prohibitions include fee-splitting, as well as giving or accepting a fee, kickback, or thing of value in exchange for referrals of settlement service business. RESPA also has specific timing requirements for certain disclosures. These requirements apply to applications taken electronically, to wit, certainly via SM platforms. Fair Debt Collection Practices Act The Fair Debt Collection Practices Act (FDCPA) restricts how debt collectors may collect debts. The

Unfair, Deceptive, or Abusive Acts or Practices The Federal Trade Commission (FTC) Act [15 USC 45, Section 5]

Information contained in this article is not intended to be and is not a source of legal advice.

Jonathan Foxx, Ph.D., MBA, is chairman and managing director of Lenders Compliance Group, the first and only full-service, mortgage risk management firm in the United States, specializing exclusively in outsourced mortgage compliance and offering a suite of services in residential mortgage banking for banks and non-banks. To ask a question or request compliance support, e-mail Compliance@LendersComplianceGroup.com. 61

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Truth-in-Lending Act I probably get asked most of all about TILA’s impact on SM. So, let me state categorically: any SM communication in which a creditor advertises credit products must comply with Regulation Z’s advertising provisions. Regulation Z broadly defines advertisements as any commercial messages that promote consumer credit. Indeed, the official commentary to Regulation Z unequivocally states that the advertising rules apply to advertisements delivered electronically. To emphasize the foregoing caveat more broadly, an advertisement is a commercial message, in any medium, that is designed to attract public attention or patronage to a product or business. There is no ambiguity: SM is covered under Regulation Z. Sometimes I am asked what is not considered an advertisement, as if SM does not have to fall into the advertisement bucket. Let’s be clear, under Regulation Z only a few interactions with consumers are not advertisements, such as, among

other things, direct personal contacts relating to the negotiation of a specific transaction; informational material (i.e., loan pricing sheets) distributed only to business entities; notices required by federal or state law (viz., if the law requires specific information to be displayed and only the required information is included in the notice); and educational materials that do not solicit business. Tread very carefully here! Be sure to get independent guidance such as our firm offers. Don’t make up your own rules! To give you an idea of what you are up against in using SM, any loan advertisement may not state any rate other than an APR, except that it may mention a simple annual interest rate along with (but not more conspicuously than) the APR. But many SM platforms do not give a user the ability to handle font size, bold text, special characters, and so forth. Regulation Z also includes rules for advertisements that include “triggering terms,” such as (in closed-end credit) the number of payments; or period of repayment; or the amount of any payment; or the amount of any finance charge. And, if an advertisement includes a triggering term, then it must also state, as applicable, the amount or percentage of the down payment; the terms of repayment; and the APR. And I am merely grazing the surface of SM implications in connection with advertising loan products. Even a very general, loan product description can cause havoc in SM compliance as it relates to Regulation Z.

prohibits “unfair or deceptive acts or practices in or affecting commerce.” Dodd-Frank Wall Street Reform and Consumer Protection Act prohibits unfair, deceptive, or abusive acts or practices. [See 12 USC 5531; Sections 1031 and 1036.] But note, an act or practice can be unfair, deceptive, or abusive despite technical compliance with other laws. A financial institution should not engage in any advertising or other practice via SM that could be deemed “unfair,” “deceptive,” or “abusive.” As with other forms of communication, the financial institution should ensure that information it communicates on SM sites is accurate, consistent with other information delivered through electronic media, and not misleading.

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creditor should be ensuring that it is not requesting, collecting, or otherwise using such information in violation of applicable fair lending laws. If the SM platform is maintained by a third party that may request or require users to provide personal information—such as age and/or sex—or use data mining technology to obtain such information from SM sites, the financial institution must notify the user that it, the financial institution, does not itself improperly request, collect, or use such information. Even giving the appearance of doing so can lead to adverse consequences. This scenario is particularly thorny and requires very carefully detailed consumer disclosure. You probably know that the Fair Housing Act (FHA), among other things, prohibits discrimination based on race, color, national origin, religion, sex, familial status or handicap in the sale and rental of housing, in mortgage lending, and appraisals of residential real property. FHA makes it unlawful to advertise or make any statement that indicates a limitation or preference based on race, color, national origin, religion, sex, familial status, or handicap. But, be careful, this prohibition applies to all advertising media, including SM sites.

FDCPA generally prohibits debt collectors from publicly disclosing that a consumer owes a debt. Using SM to inappropriately contact consumers or their families and friends may violate the restrictions on contacting consumers imposed by the FDCPA. Communicating via SM in a manner that discloses the very existence of a consumer’s debt or to harass or embarrass consumers about their debts leads to complaints and usually administrative action. Making false or misleading representations easily may violate the FDCPA. Can you imagine a debt collector writing about a debt on a Facebook wall? If you can’t, your institution does not belong in SM—even if it is not involved in debt collection!

Five Secrets to Finding Great Mortgage Leads By Kim Gates

Now is the time to find the right customers. With fluctuating interest rates impacting loan volume, lending competition is more fierce than ever before. According to a study conducted by National Mortgage News, 30 percent of lenders will shift their investments to respond to industry pressures within the next three years. And that’s why it’s increasingly important to spend your marketing dollars wisely to locate, attain, and retain actionable customers—before the competition. Here are a few ways you can do exactly that: 1. It’s 2019, people! Invest in social media. In the social media age, it’s imperative to have a social strategy as an LO. In 2019, 72 percent of American adults use Facebook. This is why it’s important to determine who your audience is and what type of distribution methods are right for you. You can leverage paid social media through sponsored ads and boosted posts. These ads can be used to retarget consumers who have already visited your site, or follow other pages like yours. However, lenders might be quick to assume that churning out paid Facebook ads will always maximize their ROI. It’s not for everyone, though. If you’ve got a tight marketing budget, it might make more sense to stick with organic social media to generate mortgage leads. Take Facebook Live for example. Launched in 2016, this video streaming service enables live broadcasters to use video to engage audiences in real-time. It’s completely free for Facebook users, and generates up to three times the engagement of traditional Facebook video. If you have a knowledgeable mortgage lending team and a smartphone capable of recording video, you should go live. Not only does Facebook thrust this content to the top of your followers’ news feeds, it also sends a smartphone notification to your followers informing them that you are live. Facebook and Instagram’s search features are free as well. The Instagram hashtag, “#NewHouse” has been mentioned more than two million times, and thousands of consumers are posting about their new homes daily. Facebook Garage Sale groups are located in just about every city, and are frequently used by people who are looking to move. This information is all publicly accessible through each platform’s search features, and can serve as great lead generation tools. 2. The power of paid and organic search If you’re looking for results, you’ll

need to reach consumers when they’re most likely to be looking for a service like yours—and one of the best ways to do this is through Google search. In fact, major lenders generate more than 50 percent of their clientele through a Google search. So how can you make sure your institution ends up on the first page when consumers are surfing the Web for a mortgage? l Develop your search presence organically. Google’s algorithms are constantly scanning content looking for material that is relevant to your industry. Keep your Web site fresh, and use terminology your clients are likely to search for (maintaining a blog is a great way to do this), and Google’s bots will take care of the rest. l Use Google’s paid search. If you don’t have the time/resources to optimize your site, paid Google ads can help boost your institution to the forefront of search results. If you’re unsure about which method to use, check out the Yext article, “Mortgage Lenders: What You Need to Know About Paid vs. Organic Search.” 3. Monitor your list of properties Nationally, about four percent of single-family homes are listed forsale over the course of a year. For some of the best leads, look no further than the clients already in your lending portfolio. If your client is selling their home, chances are they’re a good bid for a lead on a new mortgage. Once you find these candidates, you can prequalify them for financing on their new property. But how do you find them? There’s hosts of list-building services that can analyze national property databases for you. Many lead generation products allow you to access national property databases to build a list in a pinpointed geographic area where you want to know if properties are being sold. You can customize these lists based on ZIP code, city, county or distance from your office. Once your radius is set, you can sort properties based on key criteria, like mortgage amount, property type, square footage, last sale date, and demographics (language, age). The system searches your area for home sales and notifies your team when a property is listed. Using for-sale monitoring is extremely effective, especially if your lending team already has a strong portfolio of clientele in the area.

4. Forge innovative partnerships Developing strategic partnerships in similar industries is a great way to build connections and generate mortgage leads. Ask yourself: Which professionals outside your organization have the trust of your market? Could they be a source for potential referrals? Here are some examples of local visionaries who might serve as great partners: l Financial planners: Financial planners often have the most profound knowledge of a consumer’s financial situation, especially the terms of their mortgage. And financial planners, like LO’s, have to prospect for their business. If your loan applicant has a financial planner, chances are their financial statements will provide their contact info. Consider notifying the planner of their client’s decision (whether it be refinancing or purchasing) and inform them about how they can use this opportunity to help better allocate money in their portfolio. Who knows, giving them the heads up may open the door for future referrals. l Estate planning and divorce attorneys: For people who are going through divorce or have lost a loved one, there are tough times that call for unexpected loans. These times call for guidance and expertise when it comes to managing these loans. For instance, someone going through a divorce may have to refinance for better terms. This is a perfect opportunity for your team to help. l Community banks and credit unions without mortgage lending services: Remember, there are plenty of small, local credit unions who don’t offer mortgage lending services inhouse. This is another opportunity to generate leads through referrals. 5. Make it easy for them Don’t be fooled … for the modern consumer, automation isn’t necessarily the be-all and end-all. Let’s face it, purchasing a home is a high involvement experience, especially for the first-time

homebuyer. Borrowers want to make sure have all of their bases covered, and the way to ensure that is through a personalized experience from a mortgage expert. According to an extensive consumer survey conducted by TimeTrade, 56 percent of consumers would prefer to speak to a human when applying for a loan. Let your Web site’s technology pave the way for a better customer experience, so that there are fewer barriers in the way for these highvalue customers. One example of this could be smart online appointment scheduling. This will ensure consumers are placed with a knowledgeable expert in as little time as possible. Another example of this is through using pre-qualification tools on your Web site. Give consumers the option to become prequalified for financing as soon as they’re exploring your site. Many pre-qualification programs enable consumers to compare their personal credit information with your criteria straight from your site, and notifying your LO’s upon completion so that you can setup an in-person appointment as soon as possible. Key takeaways l Develop an active social media strategy and determine which channels are the best to captivate your audience. l Reach potential clients on Google, where they’re likely to be actively searching for a loan. l Monitor your current properties to determine who is selling their homes and will be searching for a new mortgage. l Forge innovative partnerships with local professionals who are capable of giving client referrals. l Use technology to make it as easy as possible for prospects to connect with you. Of course, these strategies can vary depending on the size and ambitions of your organization, but you should always take the time to measure your results and key performance indicators in any way possible. The closer you monitor your performance, the more knowledge you’ll have as to what actually works. If you can do this, you’ll be well on your way to producing higher quality leads, and of course, closing more loans.

As senior national account executive at Data Facts, Kim Gates provides lending professionals with cutting-edge information products and services to help them make sound decisions and maximize efficiencies. Kim is widely regarded as a product expert, and prides herself on staying informed of the developing trends and regulations that affect her clients. Above all, Kim values the relationships she has in the marketplace.

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Remaining Ahead of the Technology Curve and the Future of Mortgage Banking By Rick Arvielo

echnology makes all of our lives better, and it impacts us in many profound ways. The mortgage industry is no different. Today, most homebuyers start their homebuying process online. This shift from the real estate agent to the Internet as the first step in homebuyers’ search is as dramatic as it was inevitable. According to a recent survey by Ellie Mae, 92 percent of potential homebuyers do online research first before ever reaching out to a lender.

And it’s not just Millennials. Every age segment within the 2565 age range has increased in their usage online property as their first means of research over the past 15 years (according to a National Association of Realtors (NAR) 2018 Profile of Homebuyers and Sellers). What about our reputation? Understanding that our primary route to market is the loan officer, we invested heavily in reputation management to make sure our local loan officers branches have a major presence online. It’s really paid off for us

with our real estate agent relationships and our focus on winning local markets to grow our business. Also, by pairing up with the perfect inbound partners, we have added thousands of links to drive traffic. Just by sharing our Five-Star reviews on social media, we received more than 65,000 reviews over the first 30 months of implementation with those reviews shared on social media pages over 400,000 times—all linking back to a New American Funding Web page. We had already provided the excellent service—by using

SocialSurvey, we activated our customers with a proper CX 2.0 program to power our business. Getting more social for you To complete the social media loop, “Social for You,” an innovative, multimedia platform was developed to get our more than 800 loan officers ready to engage in powerful social marketing. A step-by-step guide puts the spotlight on blogs, videos and Webinars as effective ways to break down every nuance of

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social media engagement so the loan officers can fluidly communicate with current, past and prospective clients. The aim of Social for You is to turn Followers and Likers into leads and clients with easy and effective strategies, such as sharing content on social pages with the click of a button. The platform addresses trainees at their current skill level. For the already-seasoned social media marketers, Social for You offers advanced instruction on data insights to target the right

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audiences, with the right content, at the right time. Connecting with the crowd Innovation begins for us with our advanced CRM technology, BankerView, which offers several key features to help simplify loan management. This technology was designed to reduce borrower fallout and increase our loan officer’s production by managing the loan pipeline and making sure that no leads are forgotten, or any opportunities wasted. BankerView offers a variety of efficiencies in one convenient place for the loan officer—

everything from recording/sending a mass voicemail to your clients to generating/sending comprehensive property profile reports. Loan officers can also use it to access a library of co-branded email templates and utilize a downpayment resource tool to breakdown all DPA programs by state. The loan officer can even create customized e-mail drip campaigns for different audiences and share videos through a customized video creator that adds the loan officer’s headshot and contact

information into the video. All about the app We’re all part of the “Now Generation”—nobody expects to wait anymore. So we knew our outside loan officers needed to be able to do as much as possible when they’re out in the field and not have to be anchored back in the office. We’ve given them the advantage of accessing an on-the-go mobile app of the company’s CRM software for a virtual office experience. continued on page 66

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remaining ahead of the technology curve

From their smartphone, our loan officers can access a variety of everyday tools that they can use from anywhere and anytime to run credit, preapprove clients, get access desktop underwriting and manage communications, plus a multitude of other vital tasks and functions. Recently, we added to our mobile app with a new integrated feature called “Agent Intelligence.” With it, our originators can track all the top real estate agents in their market and the loan officers they’re currently working with. They have the ability to filter information in dozens of ways, viewing production numbers from highest to lowest, by unit volume, dollar volume, individual deal size, buy-or sellside transactions, etc. It also shows us the lenders these top agents are working with, so we

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always know what the competition is up to.

has positioned us for an exciting future.

Connecting with clients in a whole new way We found that we will never get a hold of seven out of 10 borrowers. Knowing that, we needed the precision of a tool that taps into our lead providers and transfers these live leads directly to the loan officer’s cellphone. This means they can take as many leads as they’d like and build their business at their pace. Through a process known as “Geofencing,” our loan officers are geographically matched to local borrowers. This optimizes the loan’s chances of conversion because of the loan officer’s local knowledge and the buyer’s comfort with a lender from their community. It’s just another way technology has made a difference in our business and

Transforming the mortgage industry’s future together The online mortgage experience is getting better and better and users across all age categories continue to show growth. So is our industry going to be disrupted? I don’t think so; I think it’s going to evolve. Real estate agents and loan originators need

to embrace a technologicallydriven environment in order to fully capitalize on it. My company has equipped its loan officers with nextgeneration technological solutions to be highly competitive in the marketplace. We are ready to serve our clients today as the trusted experts who can deliver a superior experience and a better product to meet the everchanging demands and modes of communication for tomorrow’s loan officers and homebuyers.

Rick Arvielo is chief executive officer at New American Funding. Rick’s proven formula of marrying marketing and proprietary technology to grow businesses from the ground up has led to the growing success of New American Funding. Rick leads approximately 160 branches and approximately 2,800 employees with the goal of providing unparalleled service and mortgages at competitive rates, helping individuals fulfill the American dream of owning a home.

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Adam P. Smith is president of The Colorado Real Estate Finance Group Inc., a commercial and residential real estate finance firm, and the owner and sales coach of Just The Tips Coaching. He may be reached by phone at (303) 770-2262, ext. 112 or e-mail Adam@CoreFinanceGroup.com. 67

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The Future of Lending Is Scalability: How Prepared Are You? By Greg Holmes & Julie Piepho he unpredictable nature of hurricanes is well documented. A disturbance begins brewing, and the U.S. and European models go to work predicting the storm’s intensity and path, only to be disproven oftentimes at the last minute. All those who might be impacted diligently prepare and evacuate, but then there’s a sudden turn in direction and new areas are thrust in the hurricane’s path. The fact is, the “cone of certainty” is typically relatively small, so there is usually a wide swath of the population that prepares, even though it may only see some wind or rain or nothing at all. The future of lending is equally unpredictable. Sure, there are economic models that detail the likelihood of changes in rates, trends in housing prices, and the availability of inventory, but in the end, the industry must grapple with technological advancements, new compliance requirements and changing consumer demands as they are happening. As with a hurricane, the industry’s future is somewhat predictable and lenders must prepare for it, but you must also be nimble enough to adjust should there be a change in direction—be it a rate hike, a new regulation or a recession. In a word, you must embrace scalability in order to withstand whatever may come your way. The boom of 2019 caught a lot of lenders by surprise. Having the capacity to change in size and scale proved to be an essential quality for a lending operation to survive. But how is scalability accomplished?

try to determine what your future needs will be before your presentday capabilities become antiquated. One thing we can all agree on when it comes to the future of lending, APIs and bots will become increasingly important. The trick is figuring out how and what to integrate—and finding the time and resolve to make those integrations a priority.

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Technology’s impact on consumer wants and lender needs What’s happening in the marketplace right now will have a profound effect on the lending process in the future. Today, it’s all about the consumer wanting to use a mobile app upfront–and the industry making a POS application possible. People want to take their smart phones, click on a few buttons, and get approved right there, that

“One of the main challenges we face in the midst of the kind of volume we’re experiencing this year is being able to take the time to figure out which technology projects to invest in and how much money to allocate.” Greg Holmes, Managing Partner, Credit Plus Inc.

“While APIs have been rapidly and widely embraced across the industry, the use of bots has been more limited to date, but that is expected to change and change fast.” Julie Piepho, executive strategic advisor, Credit Plus Inc.

second. That means the lender must receive their credit report, credit score, verification of assets and income, review it all and get back to the applicant with a pre-approval letter in a matter of seconds. And, for this to happen, all of the companies involved in the process must work together with the end goal being preapproval and not just a prequalification letter. Both borrowers and real estate

agents want this to become a reality—and now! One of the main challenges we face in the midst of the kind of volume we’re experiencing this year is being able to take the time to figure out which technology projects to invest in and how much money to allocate. It comes down to deciding between investing in a new, state-of-the-art LOS system or continuing to use your existing LOS and POS systems while you

How APIs are advancing the industry Application Programming Interfaces (APIs) are changing the mortgage process–and for the better. They are increasingly being used by lenders and industry vendors and moving us one step closer to a true digital mortgage. APIs offer, and deliver, an enormous amount of flexibility that allows lenders to customize the user experience. They also help with scalability by enabling lenders to explore different ordering mechanisms and workflow options. Basically, APIs help programs communicate with each other so that loan officers, underwriters, compliance officers, and more can all access and update data as necessary. APIs provide borrowers with increased transparency and communication throughout the mortgage process, directly addressing one of their chief complaints—feeling “in the dark” especially during the time that elapses between approval and closing. For lenders, APIs offer access to all the pertinent data they need and ensure that various programs throughout the mortgage process can communicate and transfer that data effectively. They also allow lenders to regularly update borrowers with real-time status alerts, inform them of next steps, and more. APIs have dramatically improved the borrower experience and will soon be a standard practice. What’s all the buzz about Bots? While APIs have been rapidly and widely embraced across the industry, the use of bots has been more limited to date, but that is expected to change and change fast. According to CNet, a bot is

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an application that performs an automated task, such as setting an alarm, telling you the weather or searching online. They are used for repetitive job functions where there is no need for human decisioning. For example, when a bot receives a creditor name, it can identify that the creditor only accepts a trade line update request by fax. It will then automatically fax out the request without human intervention. Bots can handle a lot of the labor-intensive work that underwriters and processors are responsible for. The end result is that they can devote more time to keeping the mortgage process on track and less to documentbased activities where they compare and analyze data on standardized forms. Bots enable these professionals to focus on the borrowerâ&#x20AC;&#x2122;s experience, ensuring it is as pleasant and hassle-free as possible. The possible consequences of non-QM patch removal One of the products lenders are increasingly turning to is the non-

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QM mortgage. The Consumer Financial Protection Bureau (CFPB) is expected to move forward with its plan to eliminate the so-called â&#x20AC;&#x153;QM patchâ&#x20AC;? in January 2021. The QM patchâ&#x20AC;&#x201C; also known as the â&#x20AC;&#x153;GSE patchâ&#x20AC;?â&#x20AC;&#x201C; exempts the GSEs from having to adhere to a rule within ATR/QM that caps a borrowerâ&#x20AC;&#x2122;s DTI ratio at 43 percent. This means the Fannie and Freddie will be able to underwrite, acquire and sell loans that exceed the 43 percent DTI threshold originated by the lenders they do business with. So, what are the implications for the industry? It appears that the Federal Housing Finance Agency (FHFA) is looking to not allow the GSEs to acquire all qualified mortgages in the future, such as non-owner occupied, cash out, second homes and higher LTVs. This would make the non-QM market grow more rapidly. Nevertheless, non-QM will still need to prove ATRâ&#x20AC;&#x201C;which can be done with automated verifications via API integrations: 1. Bank statements can be directly obtained electronically

from financial institutions through services such as Finicity and AccountChek which reduces risk for fraud. 2. Employment information and consumer income can be validated through The Work Number, a solution offered through Equifax Workforce Solutions, and the largest collection of payroll records contributed directly by employers, which can help you make more informed decisions. 3. Credit reports can be easily accessed by lending institutions via APIs so they seamlessly flow into their LOS technology. 4. Appraisals can also be obtained electronically. These up-to-date valuation products fully comply with regulatory requirements to ensure lenders are always protected.

What will the future hold? Well, we know technology will continue to evolve and speed up the journey to a fully digital mortgage. That is clearly within our â&#x20AC;&#x153;cone of certainty.â&#x20AC;? But outside of thatâ&#x20AC;&#x201C;many things are uncertain. Thatâ&#x20AC;&#x2122;s where the importance of scalability comes in. Lenders must have the technology, people and processes in place to be prepared for anything. Just as a hurricane can change direction at a momentâ&#x20AC;&#x2122;s notice, so too can the lending landscape suddenly change as unforeseen things happen within our economy and across the globe. But rest assured, mortgage lending has found a way to thrive for the last 40 years. And there is every reason to believe that we will continue to do so for the next 40 years and beyond.

Greg Holmes is managing partner and Julie Piepho is executive strategic advisor at Credit Plus Inc., a third-party verifications company serving the mortgage industry. Greg can be reached by email at GHolmes@CreditPlus.com or Julie can be reached by e-mail at Julie@MilestoneLeaders.com. 69

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Beyond Data: Improving Relationships and Profitability Through Borrower Intelligence By Alex Kutsishin t’s 2019, and data is king. However, the best way to utilize a database is an essential strategy that many mortgage lenders overlook. All too often, loan officers are reaching out to leads and former customers just for the sake of reaching out, and not because they have a meaningful, timely reason to call. For an industry based on the lenderborrower relationship, this approach is not effective. Smart lenders view their database differently. Thanks to automated borrower intelligence, loan officers can now be armed with timely, relevant, and insightful data that enables them to reach out to their prospects at the right time. We get it … artificial intelligence (AI) and machine learning may sound like the last thing you want in a business that has trusted, authentic relationships as a cornerstone. However, systems that utilize data automation can manage the behind-the-scenes work, enabling loan officers to build rapport with prospects and previous customers with time-sensitive information such as a change to a credit score, home equity increase or loan qualification alert.

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Harness your data Actionable data and the use of automation keeps loan officers informed when a pertinent event occurs, such as a change in credit score, qualification for a lower rate, or loan-impacting life events—with no manual labor required. Notifications are delivered directly to the loan officer and tasks are created to initiate appropriate follow-up actions based on the status of the lead, ensuring loan officers stay front and center with their customers through all stages of the customer life cycle. So how does it all work? During the deployment processes, the borrower intelligence system aligns the procured data with numbers from national bureaus, databanks with access to public records, mortgage, property, and

consumer information. For example, if the aggregated data indicates that a borrower has improved their FICO score, reduced their debt level, gotten divorced, or listed their home for sale, the loan officer will be notified that they are now qualified for a specific loan product. Previously, mortgage lenders were unaware when an unqualified lead qualified. Ineligible borrowers had to undergo the loan application process repeatedly rather than a loan officer receiving a notification about the status change. Loan officers were also in the dark about borrowers qualifying for a better interest rate, loan-impacting life events, and equity opportunities. Fortunately, technology now takes the guesswork out of the equation and provides insights and automated retention abilities. Simply put, automated borrower intelligence technology plugs potential gaps in the customer journey, helps loan officers communicate with their customers at appropriate touch points, and ensures that no opportunities are missed. Meaningful communications mean happy customers The most successful loan officers maintain regular communications with their borrowers—including new leads and repeat buyers. Remember earlier when we said that data is king? Loan officers armed with data automation and machine learning technology are often the first to know when it’s an ideal time for a lead to enter the market, and because there is a previous relationship, connecting with the borrower is much easier. Outreach can be conducted by e-mail, text or phone calls. Thanks to better information, the loan officer is armed with news that will help the prospective borrower on their home buying journey. Here are a few examples: l Scenario #1: Improved credit score: Once a credit score hits the requisite threshold, the loan officer is notified by the automated borrower intelligence system. In turn, they can contact the borrower

with good news. Here is a sample outreach … Hello, Mr. Borrower: I have good news for you! Our system notified me that your credit score has increased, and you are now eligible for the loan we spoke about earlier this year. Congrats! I’d love to set-up a few minutes to chat about your options and next steps. Please let me know when you would like to connect. Regards, John Lender l

Scenario #2: Life event notification–growing family: Life event notifications pertain to divorces, growing families, and the passing of a loved one. Some of these scenarios are sensitive; however, the right information can be just what the borrower needs. Here is an example of an email to a growing family … Hi Mr. & Mrs. Jones: I wanted to send over a quick note to say hello. It was terrific working with you on the purchase of your first home back in 2015. If at any point you are looking to expand your footprint, I’d love to set-up a time to connect about your options and the current market. Let me know if you’d like to chat! Thanks, John Lender

instance … Good morning, Travis: It’s been a while since we’ve connected. I think it was back when you purchased your home at 135 Maple Road. Well, I wanted to let you know that the refinance market is favorable and that you are a perfect candidate. If you would like to talk about an opportunity to reduce your mortgage payment, I’d love to set-up a quick call. Hope to talk soon! John Lender As you can see from the examples above, leveraging data insights doesn’t impersonalize the lender-borrower relationship. In fact, it is just the opposite— meaningful, timely, reach-outs that delivers value to borrowers (both past and present). Buying a home is one of the most significant decisions a person makes in their lifetime, and they want to know the person they are doing business with is in-tune with their needs and has their best interest in mind. Automated borrower intelligence delivers on this expectation.

Borrower intelligence is key to a flourishing pipeline It’s clear that lenders utilizing machine learning approach data differently. They look at their database as a sustainable farm, with leads that can be nurtured and harvested time and time again. They have discovered how to harness the power of their data Scenario #3: Refinance to improve relationships, and as a opportunity: Automated result, boost loan volumes, borrower intelligence is a customer retention and profits. By perfect fit when it comes to replacing guesswork with datapast customers. It not only driven actions based on boosts refinance volume for meaningful insights, mortgage lenders, but also solidifies lenders can work smarter and your relationship and more efficiently to keep their sales promotes repeat business. For pipeline plentiful.

Alex Kutsishin is co-founder, CEO and chief ROI booster at Sales Boomerang. Sales Boomerang helps mortgage companies achieve increased loan volume by providing tracking and notification software that will notify the mortgage company or bank that their customers and/or prospects are now great candidates for a loan. We’ve already helped our clients discover over a billion dollars in missed opportunities. For more information, visit SalesBoomerang.com.

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The Mortgage Industry: Collaboration is the Key to Transformation By Patrick Stone ow can all segments of the real estate industry— lenders, real estate agents, settlement agents, appraisers, inspectors, etc.—spend so many dollars on technology over the last 20 years and we still have a process that takes too long, costs too much and leaves the consumer befuddled? The answer is the lack of collaboration. Engagement with one another is no longer a professional expectation, but a necessary partnership. Consumers continue to expect higher quality and faster turn times as technology continues to advance, and now, it’s time for the mortgage industry to embrace change. For the housing industry to continue to advance, all parties must be on board in order to help mortgage lenders move forward. This includes appraisers, title companies and many other parties coming together to do what’s in the best interest of the borrower. What borrowers want is simple … a fast, straightforward, easy-to-understand experience from application to close. And mortgage lenders must find a way to utilize technology to bring life to these needs, while operating in a heavily-regulated environment. It is not a simple task by any means, but with teamwork and collaboration between companies, it is within reach. At times this might mean releasing control and being willing to see the job or process from a new perspective. I don’t care what industry you’re in, control is an impediment to change.

higher quality of service, but they also want it faster and in a format that is easy to digest. And the mortgage industry is stepping up to the plate:

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Increase technology and collaboration While not always the case, often times mortgage industry participants can embrace change by reducing their FF&E—that is: Furniture, fixtures or other equipment—their physical locations, and increasing their level of technology.

“What borrowers want is simple … a fast, straightforward, easy-tounderstand experience from application to close. And mortgage lenders must find a way to utilize technology to bring life to these needs, while operating in a heavily-regulated environment.” WFG National Title Insurance Company is a national settlement services provider and yet has just 71 offices. It is one of six truly national title companies, and generates significant revenue by embracing a single technology platform that eliminates re-keying of data and is task driven. Instead of expanding their reach by building new offices, companies should look to expand their reach by embracing technology and finding ways to integrate seamlessly with mortgage lenders’ current systems. Third-party servicers to the lending industry should be focused on technology that allows them to become a part of their clients’ processes. While it was slow going at first as many resisted the urge to relinquish control, lenders are increasingly outsourcing their needs. For the first time in my career, we’re actually having conversations with lenders about collaborating to identify pain points. Previously, third-party

vendors would talk to lenders about how to improve their interface and collaborate better. But now, lenders are actually listening and are interested in the changes they can make and how they can collaborate. This is progress. Today, more and more lenders are now outsourcing more responsibilities and embracing variable costs. This helps lenders control costs during downturns, but also opens new possibilities for third parties to help improve the mortgage process. It’s no longer just the lender’s responsibility to utilize technology to create a better borrower experience. Lenders are now more open to collaboration than I’ve ever seen before. Better, faster mortgages As technology in the rest of the world continues to improve the consumer experience, all mortgage transaction participants must work together to improve their process. Not only do consumers expect

Land Gorilla pioneered a new way of managing construction loans by creating a cloud-based system that makes lending faster, safer and more efficient. Valutrust Solutions provides real-time property information, complete with neighborhood and comparable sales data, in an easy to use interface to assist lenders in their interactions with borrowers. Additionally, aided by its integrated, proprietary technology, Valutrust has been able to drive significant time out of the process for delivering compliant valuation products. DecisionPoint, a new product recently announced by WFG, can process a title request within seconds using only the borrower’s name and the property address. It is designed to instantly deliver a title grade and completion time estimate to lenders, advising them of any title issues that need to be resolved prior to closing and enabling them to identify the estimated 30 percent of loans that are clear to close upfront.

And as we increase collaboration, the possibilities are endless. We can continue to make the process faster for all parties, and deliver a better mortgage to the borrower. The amount of data we have in our industry, coming from real estate agents, lenders, title companies, appraisers, inspectors and everything else, is absurd. We recently conducted a survey in order to determine how many times a property address was entered on a typical transaction. The results? The address gets entered an average of 80 times. Can you enter an address 80 times without making a mistake?

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By using technology to enhance collaboration, not only do we eliminate the need to take the time to enter a property address 80 times over, but we also reduce the number of mistakes. It is absolutely crazy that we have an industry where we close about 70 percent of the loans we start, even though it takes about 43 days on average to finalize the deal. But this can be significantly improved with collaboration and integration between parties. And it isn’t just the time to close that has borrowers upset, but also the time it takes at the closing table itself. It can take hours to travel to a title company, wet sign all the closing docs, and the borrower still probably won’t know what much of what they signed even means. But collaboration is also improving that. Many eNotarization companies continue to integrate with title companies, allowing borrowers to close from anywhere. And eClosing technology has allowed

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borrowers to sign pages electronically. The challenges of regulation We have so little conversation between real estate agents, lenders, title companies, appraisers, inspectors and attorneys. The level of cooperation has been minimal, and one of the key reasons for this is the regulation in the housing industry. Many regulations, such as TILA, RESPA and others, prevent participants from being able to work together too closely for fear of kickback violations. When, for example, a real estate agent refers their clients to a lender or vice versa, the scrutiny increases to determine if and how one party is benefiting by referring clients to the other party. While rules like this do protect consumers from being referred somewhere against their own interests, it also decreases collaboration between parties in the housing industry. Regulation can also cause a speed bump for technology

providers. There are federal regulations that guide some parts of the mortgage process, but there are also state regulations that could differentiate from one state to the next. For national companies, this becomes a problem.

complexity only serves to create more of an opportunity to improve. If the housing industry could create a more integrated process and share data instead of breaking it up, the mortgage process would look drastically different than it does today. But The true future of housing industry participants technology have to stop doing everything People always come up with fairly separately and find a way to absurd assumptions about how collaborate and integrate with technology is going to radically each other. change everything. But the reality And as the mortgage industry is, technology is a tool that allows continues to integrate, and as us to do things more efficiently. eClosings become more Many say real estate is more common, fluidity in the market complicated than other lending will begin to increase and will cut industries, which explains why it time and costs, while increasing takes more time to originate efficiency. We are talking about a mortgages than it does for, say, a transformation. It is time to car loan. However, this embrace the digital mortgage.

Patrick Stone is the executive chairman and founder of Williston Financial Group, a family of businesses dedicated to taking time and cost out of real estate transactions. He has had a lengthy career in real estate and real estaterelated services, including positions with three public companies and as a director on two Fortune 500 boards. He can be reached by e-mail at PStone@WillistonFinancial.com. 73

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Millennial Homebuyers: A Parent’s Perspective By Ed Adams

ecently, my wife and I were driving to the beach for dinner … or somewhere to enjoy being “Empty Nesters,” when we received a call from my oldest daughter, who just turned 30. After we hung up, Lori reached up and gave me a “High-Five” with excitement, remarking “Look at us! We raised an intelligent and financially-savvy child!” Now, she was not surprised that we had raised an intelligent child; both of our daughters are intelligent, amazing young women. However, our daughter, for most of her early years, did not have an interest in finance, homeownership or mortgage rates. In fact, she’s battled cancer twice and is now married and has two daughters of her own. Don’t get me started on my three grandbabies, but do connect with me on Facebook if you want to be inundated with proud Papa pics … LOL! I digress. The conversation went like this: “Dad, I just got off the phone with John and we discussed the possibility of reducing our rate to enhance our cash flow, accelerate our principal reduction, and consider some minor debt consolidation.” Wow! I’ve been in mortgage lending for more than 30 years. Like most of us, I believe that homeownership and real estate is foundational to sound net worth. I also believe that owning a home not only provides shelter, but it creates life memories. And, a home allows people to express themselves creatively as a physical asset that can be remodeled and enhance lifestyle. Just look at Pinterest traffic on interior design. The benefit for most families is endless. But there are many discussions in our industry about whether Millennials will engage in ownership, delay buying or become long-term tenants. This story shares the

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“Loan officers are MIFAs, the Most Important Financial Advisors, that young people have in developing net worth. Many of us have used this phrase for years to describe the impact that loan officers provide for their clients.”

importance that mortgage originators own in helping develop the financial well-being of Millennials, and being coaches and financial advisors as well. My daughter and son-in-law recently purchased their home. They had known John, their loan officer, for many years as he and I have worked closely together and have a strong friendship. John was unbelievably educational for them when they purchased their home. He gave them guidance on loan products, taught them how to understand documentation and real estate contracts, and even worked with them to learn about solar panels as part of the purchase contract. They both become highly engaged in the process and inquisitive about all aspects of the transaction. Within a year, interest rates had fallen more than expected. John and I discussed the current environment and he

reached out to them to discuss refinancing their mortgage. That’s when we received the call I described above. As they reviewed their options, our daughter and son-in-law determined that they had already accumulated $30k in equity after John had the appraisal completed and they reviewed their transaction. The appreciation was simply an added benefit because the refinance still met the objective that they had discussed with John. In my view, this story is a perfect illustration of the importance that a loan originator provides to young families. I’ve outlined several points below from the perspective of an industry leader that define my belief relative to the importance of loan originators in our country. Here are the main points: 1. Loan officers are MIFAs, the Most Important Financial Advisors, that young people

have in developing net worth. Many of us have used this phrase for years to describe the impact that loan officers provide for their clients. As an industry leader, and more importantly a parent, this phrase has never been more essential. Buying a home loan today is a complicated process. There are multiple origination channels and omni-channel methods of communication. Clients can be confused about online availability and whether to trust the sources of mortgages available to them. Clearly, consumers are becoming more comfortable online and our industry is moving quickly relative to secure methods of validation for assets and income. A MIFA is critical, not only to the financial advice required to make a homebuying decision, but also the channel to provide personal documentation and digital transfer of information. We are in a high-trust industry and strong loan originators embrace the responsibility. 2. Real estate remains the most sound investment most people will make in their lifetime. Loan officers teach young people how to think about growing net worth and the importance of managing debt. Remember, our educational system does not teach finance related to homeownership as a main course of study. And yet, it has the strongest impact on net worth that most families achieve in their lifetimes. 3. Owning real estate can create opportunity for future investment properties. First homes today can become future investment properties. Currently, there is high rental demand and an influx of buyers from overseas bolstering demand. In many situations, young families move up to a

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larger home within five to seven years and maintain their first home as a rental property. This can provide a future cash flow stream and teaches the art of managing investment property and importance of financial diversification. Clearly, there are multiple factors that require education: property maintenance, managing tenants and RE contracts, costs associated with repairs and labor. But an educated loan officer can be a tremendous source of support for helping young families expand their investment resources and be knowledgeable about economic conditions.

6. Building a sound business for mortgage originators often begins with nurturing a database of Customers for life. It all starts with 1st time

While the industry is providing omni-channel opportunities to help consumers manufacture loans, the consultation necessary for first-time homebuyers and most consumers, quite honestly, remains extremely important. The strongest originators I’ve known are attentive to their businesses in several ways: l The development of strong referral partners l Being consultative to customers and “directing” them on how the process will work l Utilizing the tools available including digital processes to heighten efficiency l Nurturing your database l Strong networking focus. Everyone is a potential homebuyer or refinance customer. l Engaging support departments to communicate directly with customers and illustrate a team approach. Delegating tasks effectively. l Being the CEO of your business. Focus more on the points above and allowing the business to function. I’ve experienced tremendous success in our industry, and I’m grateful for the career I’ve chosen and all the incredible people in our industry. But, as a parent, I’m even more appreciative of the consultation and guidance that John provided to my daughter and the impact that all loan officers have on the lives of young people throughout our country who are buying their first home. I hope that Loan officers who consider themselves ‘CEOs’ of their own companies consider themselves as MIFA’s to their Millennial clients to build future annuities in their personal business. They provide tremendous value to these young borrowers. As a parent, and industry leader … thank you!

Ed Adams serves as senior vice president, retail production for Mountain West Financial Inc. Ed most recently served as the director of retail mortgage for BOK Financial, a financial institution with more than $40 billion in assets. He brings 32 years of retail mortgage lending experience to his position at Mountain West Financial.

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5. The prime working years to build wealth in real estate occurs between the ages of 30 to 60. Since mortgage terms typically align with this period, loan officers can be transformative in helping young people think about how their real estate investments align with their primary working years and the importance of owning real estate and managing their debt reduction.

homebuyers or the children of clients you’ve nurtured for many years.

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4. Markets are cyclical, however there are important opportunities in all cycles that can help create future wealth. Loan originators can help people understand that buying real estate is not all about the value of the property today or the interest rate. Managing principal reduction is critical to establishing equity aside from property appreciation. Prices are cyclical. Many times, buying at any time in the market cycle can be a wise decision based on family needs, interest rates, income levels, and a variety of factors.

a special focus

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Create an Unfair Competitive Advantage for Your Mortgage Company The future of mortgage banking will leverage data like never before n any industry, it’s hard to win if you don’t know what your competition is doing. Traditionally, lenders have relied upon just a few very limited options to do so, such as often flawed survey data based on a very small market sampling, latent servicing data illustrating what business looked like six or more months ago, or an annual HMDA ranking. Suffice to say, none of these resources enabled them to effectively compare the current state of their business to those they compete with. Today’s leading technology providers have upended those concerns with powerful new business intelligence offerings. The most robust solutions tout daily updates of comprehensive transactional data and feature insightful visualizations that can be configured through a variety of highly granular filters. These competitive analytics are powered by data from actual mortgage transactions across the country and updated every night, providing the most accurate, granular and timely view of mortgage transactions available in the industry. Further, these solutions enable lenders to benchmark their results against the overall market in the areas that matter most, resulting in far more informed corporate decisionmaking and highly targeted lending strategies.

By Bob Brandt

margins are being eroded by concessions and how concessions offered compare to the overall marketplace. It is easy to become overwhelmed with data. For that reason, leading solutions offer out-of-the box capabilities to dig deep on front-of-mind questions, like whether a price is competitive and how margins or concessions compare to other lenders in their producing markets. This really gets into profitability, not only providing lenders with the tools to highlight where they are most competitive, but—more importantly— illustrating where they can adjust resources and strategies to be even more competitive and profitable.

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Answering the question: How competitive are each of my lending strategies? Leading technology solutions provide advanced filtering capabilities, often built and designed with extensive client feedback. This facilitates a lenders ability to easily determine whether their market share is growing or declining, as well as how it’s evolving over any configurable range of time. Ideally, lenders can leverage filters by loan type, loan purpose, and loan amount. The best solutions also enable them to drill down by state, MSA level, or a user-defined

“Leading technology solutions provide advanced filtering capabilities, often built and designed with extensive client feedback. This facilitates a lenders ability to easily determine whether their market share is growing or declining, as well as how it’s evolving over any configurable range of time.”

market area to gauge their performance as it relates to FICO range, LTV, property type, occupancy, and more. Such competitive analyses enable insightful decisions that can further ignite action by intelligently grouping large chunks of data for comparison, and then providing lenders the tools to slice that data however they want. Through interactive and interrelated data, lenders can observe trends across a diverse set of product and borrower profiles at the same time. For example, a lender can see that they are closely aligned with the market in northwest Texas on conforming loans with credit scores over 680 and loanto-value ratios above 80%, while also confirming an opportunity for growth in an entirely new market, like California, where they have been considering an FHA, non-conforming, or nonqualifying mortgage (Non-QM)

product offering aimed at specific borrower profiles. Answering the question: How does my profitability stack-up to my competitors? While it is important to leverage business intelligence solutions that provide visibility into market share, added value can be found in unique insights into lender profitability. Why? With this data, users can compare rate and price to determine where they are operating at a higher or lower margin than others—with or without the impact of loan officer compensation. Then, directly next to those visualizations, they can also see what portion of their

Answering the question: Where do I rank in my current (or future) markets? Another unique feature to look for is the analysis into the efficiency of a lender’s lock desk. Leading solutions will provide comprehensive “volume snapshots” that let lenders view their rank based on their number of locks and lock volume, as well as post-lock changes. In leveraging this data, lenders are empowered with deep visibility into their operations and unique comparisons to the overall market to inform profitable strategies, drive new efficiencies, and create competitive differentiation. Ultimately, business intelligence that leads to improved efficiencies and a more competitive offering helps lenders better serve their most important stakeholder: The borrower. Daily insight into successful strategies to better serve borrowers and grow their businesses is the differentiating factor that lenders need in the current, and future, mortgage landscape.

Bob Brandt is vice president of marketing and alliance with Optimal Blue. One of every three mortgage loans completed nationwide every year are priced and locked through the Optimal Blue platform, uniquely positioning the company to provide meaningful and unrivaled benchmarks. Bob may be reached by e-mail at BBrandt@OptimalBlue.com.

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Powering Up the Turbo Mortgage n 1905, Swiss engineer Alfred Buchi devised a method for increasing the power of internal combustion engines by using compressed exhaust gas to feed denser air into the combustion chamber. Since then, turbochargers have been used in many things—including boats, planes and cars—to get from one place to another faster and more efficiently. Of course, mortgage lenders can’t use internal combustion engines to produce mortgages, which is probably a good thing. Our industry has enough to worry about without adding carbon monoxide poisoning to the mix. But just as turbocharging has improved the way people travel, similar technologies are enhancing our industry’s ability to produce mortgages faster and more efficiently than ever. Today, these technologies have led to what I like to call the “turbo mortgage”—mortgage loans created through a set of new innovations that deliver a better, less costly experience for everyone, but especially mortgage borrowers. The turbo mortgage is already becoming a reality for a small but growing number of mortgage lenders, and it couldn’t have come at a better time.

By Joe Langner

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Why today’s lenders need more power For the past four decades, the loan origination system has been the primary tool lenders have used to originate mortgage loans. During that time, our industry has seen some extraordinary advancements in technology, from digital signatures to Web-based software to new borrower-facing fintech solutions and more. Yet in spite of these advancements, mortgage production costs continue to rise. It takes more than $10,000 to produce the average purchase loan, according to the Mortgage Bankers Association’s latest figures. Why do loan costs continue to rise despite the growing use of technology? Obviously one reason has been constantly

“While many fintech solutions promise to make mortgage lending easier and more efficient for consumers, these solutions rarely live up to their promise because they are poorly integrated with the lender’s LOS.”

changing lending regulations, which require lenders to jump through hoops in order to show that borrowers have the means to pay back the money they borrow. But meeting investor requirements significantly add to origination costs, too. Another issue is the fact that it takes a village of product and service providers to produce a saleable loan, from appraisers to title companies to warehouse lenders and more. Working with all of these villagers has never been simple or easy. But one of the most overlooked reasons is that the basic technology lenders have used to produce the majority of loans sold to U.S. consumers— the LOS—has evolved relatively little over the past two decades. Indeed, many lenders are using the same technology they were using 10 years ago, before most borrowers began using the Internet to apply for mortgages. As a result, many lenders today continue to struggle with gaps between newer borrower-

facing software and their older origination platforms. While many fintech solutions promise to make mortgage lending easier and more efficient for consumers, these solutions rarely live up to their promise because they are poorly integrated with the lender’s LOS. The upshot is that lenders are spending more time on manual, repetitive tasks, which pushes loan production costs higher at a time when they are already at record levels. What exactly is a “Turbo Mortgage?” As fintech solutions have risen in popularity, many lenders have found themselves using two sets of technology—one for consumers and one for loan officers and processors—that don’t talk to each other very well. A much better approach in a digital mortgage environment is to have everybody use the same platform for all stages of the loan production lifecycle. In a nutshell, that’s what the “Turbo Mortgage” is. It’s a digital

mortgage loan created from the point of sale to closing, produced by a single system used by all parties. Built and hosted in the cloud, the turbo mortgage system connects all products, services and data to achieve a faster, more efficient loan production environment. It includes the convenience of mobile applications, the ease of sending and receiving electronic documents digitally, and the cost savings and implementation speeds that a cloud-based service affords. Ultimately, the turbo mortgage gives a more personal touch to mortgage lending. By inviting borrowers into the origination process—and essentially, into the LOS—the turbo mortgage enables loan officers to collaborate with their customers in more engaging and dynamic ways. Beyond increasing efficiency and communication, this approach fosters deeper, more satisfying relationships between lenders and borrowers. More specifically, the turbo mortgage is made possible through the availability and implementation of open systems, Web-based software and mature application programming interfaces (APIs). Together, these tools enable a greater number of processes to be completed by larger numbers of people through a wider variety of platforms, including mobile devices. It’s this type of open architecture—built and delivered through the cloud—that forms the framework for the turbo mortgage and allows it to achieve maximum power. By offering a wider range of APIs and micro-services, turbo mortgage systems enable an unlimited array of third-party services, including mortgage and title insurance, appraisals and other valuation products, and credit reporting services, which can be ordered through the system by either the lender or the borrower. And they can include sales platforms, CRM tools and even chat, remote screen sharing, and mobile text functions that help loan officers keep the borrower’s mortgage journey on track and ultimately, close more loans. Turbo mortgage systems also make the most out of process automation by being highly event-driven. Such platforms are capable of handling everything

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from loan pricing to underwriting decisions starting with the first borrower contact all the way through to loan funding. The end result is fewer manual tasks, faster decision times, and lower overall transaction turn-times, all of which lower production costs.

Joe Langner is CEO of Blue Sage Solutions, developers of the Blue Sage Digital Lending Platform, the mortgage industryâ&#x20AC;&#x2122;s only browser-based, end-to-end mortgage technology. A former COO at Ellie Mae, Joe has more than 25 years of executive experience in the financial services and software industries. He can be reached by e-mail at Joe@BlueSageUSA.com.

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before a real estate agent when starting off on their homeownership journey. But even before they contact a lender, they are likely to research home mortgages online and shop for rates and prices. For this reason, a turbo mortgage system must involve consumer-facing tools that allow borrowers to search for mortgage products and self-qualify themselves before they decide to speak to a loan officer. These tools should enable borrowers to access their FICO scores, use automated asset and income verifications and upload their financial documents into the LOS. This allows borrowers to determine what they can afford to buy and simultaneously takes a lot of paperwork off the loan officerâ&#x20AC;&#x2122;s plate. The result is that loan officers can focus on building relationships and creating happier customers. The most important thing for mortgage professionals to know is that the turbo mortgage is not just a theoryâ&#x20AC;&#x201D;itâ&#x20AC;&#x2122;s real and itâ&#x20AC;&#x2122;s being put into practice today. Several leading mortgage lenders have already abandoned their traditional LOS solutions in favor of cloud-based solutions that are built with current technology and that let borrowers in on the process. These lenders understand that by doing so, they are eliminating the gaps that have formed between fintech solutions and the LOS, saving time and money. Itâ&#x20AC;&#x2122;s also important to know that loan professionals that want to succeed in our ever-evolving industry need to have turbo mortgage systems in their arsenal. Itâ&#x20AC;&#x2122;s no mystery that technology plays, and will continue to enjoy, a larger and larger role not just in a lenderâ&#x20AC;&#x2122;s success, but in the success of mortgage sales professionals as well. If youâ&#x20AC;&#x2122;re not providing a turbocharged mortgage experience to your customers, you can bet someone else already is. The good news? Itâ&#x20AC;&#x2122;s still early in the race, and itâ&#x20AC;&#x2122;s not too late to catch up to the lenders still making a pit stop and take the checkered flag.

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Putting borrowers behind the wheel Probably the biggest difference between traditional mortgage process and a turbo mortgage is who sits in the driverâ&#x20AC;&#x2122;s seat. Traditional LOS solutions placed the lender or loan officer firmly behind the steering wheel. In the turbocharged process, they share driving duties with the most important person involved in the mortgageâ&#x20AC;&#x201D;the borrower. Essentially, the borrower acts as the turbocharger, because the borrower is the one most incentivized to reach a successful closing. There are other reasons why itâ&#x20AC;&#x2122;s important that the borrower take more of a leading role in mortgage production. One is that Millennials have become a leading force in the housing market, but they tend to behave a little differently and have higher expectations than older generations of borrowers when it comes to shopping for products and services like mortgages. By the end of last year, in fact, Millennials (generally, borrowers under the age of 35) made up 45 percent of all new mortgage borrowers, followed by Generation X (36 percent) and Baby Boomers (17 percent), according to a survey by Realtor.com. Because most Millennials grew up with the Internet, they prefer a self-service approach when shopping for financial services online, a fact that has fueled the growth of mortgage fintech solutions in our industry. Yet another reason to involve borrowers in creating a turbo mortgage is that todayâ&#x20AC;&#x2122;s homebuyers understand that they cannot buy a home unless they can first qualify for a mortgage. This means consumers are much more likely to contact a lender

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Automating Regulatory Change: Tips for Increasing Your Financial Institution’s Success By Elaine F. Duffus egulatory Change Management (RCM) has become one of the hottest of hot topics in the last few years for the financial services industry. Why? There are thousands of reasons in the form of new or changed laws, rules and regulations. For example, in a recent 12-month period, U.S. federal banking, AML and state regulators released more than 3,800 publications. Of those publications,1 around 1,100 were related to new or changed laws, rules or regulations. Not all 1,100 publications became law, but that is an incredible amount of material to monitor for potential impact. This new regulatory reality is one of the primary reasons for the RegTech2 revolution. For most institutions, monitoring regulatory change manually is simply no longer an option and the search for an automation partner must be considered. There are many ways to approach this task, but it may help first to think about where financial institutions—and mortgage lenders in particular— are today relative to their regulators. Based on years of my advising clients on regulatory compliance best practices in the banking industry, the following are some basic conclusions … Financial institutions in general are: l Becoming more complex in their products, services and distribution channels, exposing them to increased regulatory scrutiny; l Broadening their footprints outside the U.S., which requires compliance with foreign regulatory schemes; l Grappling with sometimes overlapping or inconsistent standards across multiple regulators; l Required to consider sometimes controversial regulatory hurdles when looking to innovate (think regulatory oversight of cannabis funding, or digital currencies); l Structuring their organizations using Bank or Financial

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“For most institutions, monitoring regulatory change manually is simply no longer an option and the search for an automation partner must be considered.”

Holding Companies, thereby creating new downstream regulatory requirements for certain subsidiaries. Financial service industry regulators in general are: l Becoming more adept at understanding financial institutions’ risk exposure; l Enacting substantially more, new or amended regulations; l Requiring financial institutions to provide more and more data to document their compliance; l Expecting financial institutions to consider automation and the use of artificial intelligence technologies like machine learning, natural language processing and robotic process automation to increase efficiency and effectiveness, and to reduce the chances of human error; l Expecting financial institutions to fully vet and continuously review for risk the third parties on whom they rely, including those supplying RCM automation services.

So where does all this leave your organization in looking to automate its RCM process, and what steps can be taken to increase the chances of success? Before you begin vetting vendors in the automated RCM space, consider conducting a Request for Proposals (RFP) process. An RFP process provides the opportunity to create a checklist of your organization’s needs that includes all the right stakeholders—and to compare vendor responses in a more efficient and effective way. When undertaking an RFP process for an automated RCM provider, consider the following suggestions: 1. Assign ownership of the RFP process centrally (e.g., to Compliance, Legal or Procurement); 2. Require engagement by representatives of all stakeholder areas such as Compliance, IT, Legal, Senior Leadership, and the business; 3. Solicit stakeholder

representatives to identify and/or provide: n Pain points in the RCM process for their areas, and ideas on how automation may help to address them; n Resources in their respective areas that would handle elements of a new automated process, including workflows and managing implementation; and n Ratings (for internal use) of their requirements by importance (e.g., must have now, nice to have, and must have but can wait for a later phase of development). Determine what tools and systems you have today that may be leveraged in a new, automated RCM process, and ask RFP responders if their solution is compatible; Catalog what your financial institution has already done in support of an automated solution such as: n Creation/maintenance of an inventory of laws; n Creation/maintenance of a list of regulators, agencies, or other bodies whose standards are applied to your institution; n Mapping of the inventory of laws to institution-specific departments, products, services, themes, distribution channels and/or other elements; n Tagging or mapping of the inventory of laws to institution-specific risks and/or controls, policies, and procedures. Assess available metrics of where the institution’s regulatory burdens are now. Understand what regulatory content needs automated monitoring and which (if any) may continue as a manual process (e.g., if your institution is only following one or a few regulations from a regulatory body, consider manually tracking in lieu of buying access to the entire feed for that regulator); Understand and document the different stakeholder needs regarding current and potential RCM reporting requirements

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that an automated solution would need to address; 8. Determine which vendors will be receiving the opportunity to respond to your proposal after conducting some preliminary vetting through: n Peer group experiences; n Industry association recommendations; and/or n Research firm reporting. 9. Be realistic. Do not expect third parties such as RCM automated solution providers to take on the supervisory or decision-making obligations for your organization (e.g., Does your solution tell us how a new regulation applies to our products and services?); 10. Ensure RFP responders can supply any credentials, attestations or other requirements related to your third-party service providers’ oversight process.

l l

Enforcement Actions, Guidance, Speeches, etc.); Dynamic linking of regulatory updates to authoritative source libraries within the solution; Highly configurable features such as the ability to: Assign updates automatically to certain people or departments; Suppress or receive regulatory releases, while keeping the ability to recall them; Create new reportable fields and/or rename existing fields; Assign items to multiple workflows and to create template workflows; Map updates to institutionspecific themes, products, legal entities, services, policies, or other elements; Tag the inventory of laws to financial institution-specific topics; Robust, out-of-the-box reporting with the ability to create institution-specific reports using any data field.

Footnotes 1— Generic examples of regulatory body publications include enforcement actions, speeches, notices, guidance, advisories, manual updates and new or changed law, rule or regulation announcements. 2— RegTech refers to the use of innovative technology to manage regulatory obligations in the financial services industry. 3— E.g., In 2016 the FFIEC specifically incorporated an evaluation of an institution’s RCM process into the consumer compliance rating for federally regulated institutions. See the Uniform Interagency Consumer Compliance Rating System, 81 Fed. Reg. 79473, 79481 (Nov. 14, 2016).

Elaine F. Duffus is a senior specialized consultant with Wolters Kluwer. She may be reached by e-mail at Elaine.Duffus@WoltersKluwer.com.

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Engaging the business and other stakeholders in the RFP process provides the added bonus of ownership throughout the organization, which should positively impact your implementation experience. So, consider using an RFP process to find an RCM automated solution provider that is the best fit for your financial institution. It requires a little more work, but the rewards should far outweigh the extra investment of time. One final note: Whether you decide to use an RFP is not as important as formalizing your RCM process in some way that is reasonable for your financial institution and meets applicable regulatory obligations.3 Good luck on your automation of regulatory change management journey!

MORTGAGE BROKER AND LENDER COMPLIANCE

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Once you have taken steps such as those suggested above, development of the actual RFP should become a straightforward process. Through the RFP, a financial institution will be clearly articulating to participating vendors what it needs in the way of regulatory content, system operability and timing. Be aware that it is unlikely that your organization will find all that it needs through one vendor. However, the chances of meeting most of your financial institution’s RCM requirements should increase significantly using the RFP process. Some of the key capabilities of leading RCM automated solutions today that your organization should be aware of during this process include: l Structured content that supplies a common view of all regulatory releases, regardless of jurisdiction, regulator, or release type (e.g., ANPR, Enacted Regulation,

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Best Practices for Mastering the Promise and Pitfalls of Digital Mortgage Technology By Eric Bingen ive years ago, having a coherent digital mortgage strategy (and a platform to operationalize it) was worthy of serious consideration. Recent consolidation in the mortgage lending industry, partly driven by the scale economies possible when loan manufacturing is automated and streamlined, has irrevocably altered the playing field. Witness the rise of non-bank mortgage lenders such as Quicken Loans and Rocket Mortgage. In 2019, having a digital mortgage platform is increasingly a matter of survival in the face of highly digital lenders driving ever more operational efficiency, including a streamlined borrower experience that extends well beyond an online 1003. This article provides some from-the-trenches guidance to lenders considering a new (or renewed) transition to a digital mortgage platform.

this below) will help you cut through the noise of competing options.

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Don’t begin with someone else’s solutions Lenders, like other businesses, should avoid the all-too-common approach of adopting a technology and then searching for ways to apply it. It’s tempting to learn about a new fintech gadget, and to get excited about adopting it. When a senior executive asks why your institution doesn’t have that shiny new online feature that your competitor across town just launched, the human tendency is to react by saying that you will get on it right away. Write this down: Devising a digital mortgage presence based upon a laundry list of technical features is a prescription for failure. Why? Because technologies are not ends unto themselves. They are tools to get the job done. Take Artificial Intelligence (AI). AI can solve certain problems for lenders, but it (and any other technology) is not a panacea. It is a tool in your toolbox. Ever try to hammer a nail in the wall with a pair of pliers? Depending upon the problem that you seek to solve, AI may or may not be the best tool.

“In 2019, having a digital mortgage platform is increasingly a matter of survival in the face of highly digital lenders driving ever more operational efficiency, including a streamlined borrower experience that extends well beyond an online 1003.” Digital mortgage technology is only relevant if it solves real problems. Problems that hold your institution back. Problems that divert prospective Borrowers from engaging. Problems that compress your lending margins and increasingly overload LOs with each downward blip in the 10-year Treasury rate. Problems for which the benefits of an effective solution clearly exceed the cost of implementing it. Begin with your problems Lenders who have successfully transitioned to digital mortgage have often begun with the following steps: 1. Define your top mortgage lending problems in detail. Decompose big, nebulous problems into smaller problems so that their true nature is better perceived. For each problem, clearly define the outcome or goal you need a solution to achieve. 2. Lay all the problems on the table for your team to review and discuss. Chances are,

several problems are interdependent. Tackling them separately will yield suboptimal results. You will not see these dependencies in advance (when you need to) unless you assess your current situation as a whole. 3. Now that you clearly grasp each problem, rank them based upon the perceived value of solving each. Are there are steps in your process when LOs are routinely delayed waiting for asset verification? What’s the average number of days that this “costs” your organization? Don’t have all the data required for this analysis? Even categorizing problems as highly painful, somewhat painful, or nice-tohave can help you identify (and build internal consensus around) what to focus on first. 4. Now, and only now, start shopping for technology. You have precisely defined the problems you seek to solve and what a successful solution should deliver, so you have already defined evaluation criteria that (while not exhaustive—more on

No man is an island … your digital experience shouldn’t be one either Buying a house or other property is a big, complex transaction decision. For many borrowers, it is also a scary, live-changing and stressful decision. This fact underlies why Ben Hopper of First Tennessee Bank, stated in a recent BAI podcast: “Sometimes we just want a banker to help us feel confident about major decisions ... We want real-time solutions with a foundation in personal relationships.” Many lenders overlook Mr. Hopper’s insight when planning their digital mortgage initiative. We recommend considering ways for loan officers and borrowers to interact online, possibly including the ability to complete an online application together in real-time. See what borrowers never will Frequently, lenders who embark on creating a digital mortgage platform focus overwhelmingly on the borrower experience during the “first mile” of loan application submission. If your institution is like many of the other lenders with whom we’ve partnered, you may want to address problems with average time to close and average cost per funded loan. If this rings true for you, then providing an intuitive, low-friction borrower experience is a very important step, but it is just the first step of this journey. There are two additional and absolutely vital elements for capturing the full benefits of mortgage digitalization: The lender experience Focus at least as much on the lender experience after receipt of a borrower lead or application. LOs and processors will need to request documentation, discuss loan products, model changes to downpayment and/or loan amount, generate a pre-qual or pre-approval letter, secure borrower signatures on disclosures, and assign tasks to

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borrowers that then need to be tracked and managed to assure timely completion. Your digitization initiative probably will need to include similar digital capabilities. If you have followed my recommendation to begin with defining the problems with your current mortgage process, then (if our experience with other lenders is any indication) you will uncover problems related to the lender experience, such as delays in processing and underwriting that add to cost and time to close. It is here, hidden from borrower eyes, that digitalization can produce the most value.

Don’t try this at home For adopting something as major as a new digital mortgage platform, all but the largest

Instead, engage with a technology partner Your institution may have other requirements unique to your

situation. Regardless, here is a short list of what is absolutely vital to look for in a digital mortgage partner: Required for implementation l Defined discovery and customization process to ensure a seamless fit between your solution aspirations and what the partner delivers. l Willingness to provide a written deadline for your initial implementation. l Verifiable ability to work closely with you to maximize internal buy-in, including an adoption plan and training for your mortgage staff. Ongoing l Ability to rapidly change loan application, Borrower task, and Lender operational workflows to align with your workflow, qualification guidelines, and other needs. l Written SLA (Service Level Agreement) covering change management and issue resolution. l A single dedicated point of partner contact for ongoing support.

Defined enhancements roadmap as technology and market conditions evolve. Partner technology integrations and third-party relationships that attest to an ability to execute against their roadmap. Lender access to productivity and operational analytics providing the insights needed to continuously optimize platform configuration and usage. Recurring business review calls during which the Partner reviews your analytics and recommends tactics to improve business value.

Closing thoughts There will never be an ideal time to implement a digital mortgage solution. When business is good, it seems like things are too busy. When business is not, keeping your organization’s head above water feels like the only imperative. But if you look beyond the moment, it probably will become apparent that effective digitization is the only path to success in the uncertain future.

Eric Bingen is vice president of product at MortgageHippo, a digital lending platform provider. Eric has a successful 10year track record taking B2B cloud-based platforms from early stage to scaling cash flow. Prior to this, Eric led the online channel at several large companies after serving as lead developer for various fintech, data and workflow applications. He may be reached by phone at (312) 4163955, ext. 703 or e-mail Eric.Bingen@MortgageHippo.com.

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Evaluate your institution’s ability to execute Benchmark potential technology solutions against your organization’s ability to execute. This includes not only the initial adoption of mortgage technology, but (even more importantly) ongoing technology maintenance and optimization. Will your organization absorb changes to workflows needed to capture sustained benefits that the solution appears to promise? Does IT have the expertise to write the API needed to integrate with that Verification of Identity provider? Who will periodically review the Borrower UI to ensure that it remains ADA-compliant?

lenders are advised not to go it alone and not to build an inhouse solution. If you work for the 10 largest mortgage originators, then you have the internal technical expertise to integrate your inhouse systems with outside data providers like VOX and credit, to retest an integration after a data provider updates their API, and to keep on top of the inevitable changes (and occasional hiccups) that come with such integrations. But do you work for one of these lenders? Keeping abreast of rapidly changing mortgage technology (and of related compliance regulations) is a never-ending battle. Your organization must command the resources not only to launch your digital mortgage experience, but to enhance it over time. Therefore, mortgage lenders are strongly urged to partner with a cloud-based provider of digital mortgage technology that has successfully escorted other lenders on this vital, complex journey. One potential benefit is vastly accelerated time to market. A not-so-obvious benefit: partnering frees your organization to focus its resources and unique expertise to build differentiating capabilities on top or alongside the provider’s platform.

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Backend technology The biggest component of a digital mortgage platform is the backend infrastructure. It supports the features and flows that define the borrower experience, and powers any workflow automation functionality that underlies your ideal lender experience. This invisible technology layer is usually the most complicated part of a digital mortgage solution. It is also the most important part to get right. While many UX experts and developers could design and code your Borrower-facing UI, the backend often requires mortgage technology expertise, for example to properly identify and then marshal integrations with pricing engines, credit agencies and other data providers.

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Selling to Millennials Through Niche Products By Jim Loving illennials have long been the demographic that postponed homeownershi p until later compared to prior generations. However, that trend may finally be reversing, particularly for lenders who have the right mix of products combined with consumer education and marketing programs. For years, Millennials shied away from homeownership, but recent Census Bureau data indicates homeownership rates for Millennials are on the rise. Some of the increase can be attributed to housing market factors–rising rental rates can make a strong financial case for homeownership–as well as the influence of simply reaching a point in their lives where they wish to settle down in one place. One of the challenges lenders face in serving Millennials is there’s often a clash between the home that buyers envision owning and the home they can afford. Some become discouraged once they learn they do not qualify for a loan to purchase a 3,000-sq. ft. new construction home with all the latest finishes and features. In some markets, modest new homes are not being built because builders’ profit margins are so much higher on luxury homes. Of course, these challenges are not limited to Millennial homebuyers. Homebuyers in all the generational cohorts face them. And the same loan products that help Millennials overcome these challenges work equally well for all homebuyers from Generation Z right through the Silent Generation.

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Loans to close the gap As lenders, we cannot give Millennials a 3,000-sq. ft. new construction home at a low price in most markets. That’s not the reality we live in today. What we can do is show Millennials we can meet them halfway by helping them use niche home loans to buy homes with the finishes and features they want at a price they can afford. Three products in particular address the housing needs of any homebuyer whose desires are outpaced their wallet: 1. Renovation loans from FHA and VA

2. USDA rural housing loans 3. Fannie Mae MH Advantage What these products have in common is that they help renters attain that home sweet home, although perhaps not the way they may have imagined. Renovation loans Both the VA and FHA, as well as Fannie Mae and Freddie Mac, offer renovation home loan products that allow a homebuyer to purchase and renovate a home with outdated finishes, appliances, or layouts. For example, a lender with a Federal Housing Administrative (FHA) endorsement can offer Millennials a 203(k) renovation loan that will allow them to do a $30,000 or $45,000 home renovation project that could include a new kitchen with stainless steel appliances. Or, they can take an older home in need of substantial rehabilitation and put in $100,000 renovating from top to bottom renovating the house. That’s particularly appealing in urban and suburban markets that are completely built out with existing housing. In those markets, buying an updated, turnkey home, may require the buyers to outbid other buyers. Fixer-uppers may not have the same level of competition as many buyers who are not willing to take on a renovation. When the renovation is substantial, causing the home to be unlivable during construction, a 203(k) allows the financing of up to six months’ payments. That keeps the buyers from having to make a mortgage payment while also continuing to pay rent. Renovation loans like the 203(k) are sometimes overlooked by lenders because of the extended closing times and concerns about having on-staff expertise to manage the construction draw process, contractor vetting and other tasks unique to renovation home loans. Loan officers can also be resistant to doing renovation loans. They may worry it will take too long to approve the loan, or there’s too much hassle and so they stick to doing 203(b) and other purchase loans. That’s a mistake because while renovation loans do have a longer approval process, it’s not that much longer. Small independent mortgage

companies and banks can get into renovation lending by finding a correspondent lending partner that will customize the programs to your needs and customer base. When a correspondent lender offers renovation loans on a non-delegated basis, the correspondent lender will handle the underwriting, working with the contractors to obtain contractor approval and manage the draw management after closing. Other lenders, who are qualified in the renovation business prefer to handle those tasks in-house because they know the contractors and how renovations flow in their markets. There’s also a middle ground, where the lender does the front end delegated but has the correspondent lender handle the draw manage after closing. While a renovation loan may take a little longer to process; the extended processing times are far outweighed by one huge benefit: Broadening the pool of acceptable properties helps more renters make the leap to homeownership. Renovation products can truly improve your purchase loan volume because real estate agents can use them to expand their market share. Other finance options Depending on the geographic location and a Millennial’s income, another financing option could be a loan through the U.S. Department of Agriculture (USDA). USDA used to be a back-burner product, but it’s moved to the front burner because more people are interested in it. It’s a simple, easy niche product to get into. Unless your footprint includes only urban areas, do not assume you cannot originate do USDA in your market. There are many urban and suburban areas that still qualify as rural, making it worthwhile to check the eligibility maps. If your market does not include USDA eligible properties, consider adding on manufactured housing loans, a housing type that’s growing increasingly popular.

Manufactured home loans There is a new generation of manufactured housing that offers a level of quality and durability that rivals some site-built homes. They are larger and more detailed than the double-wides of the past. They also include stick-build features like a driveway and garage, sidewalks and pitched roofs. Because they are more affordable, manufactured housing could be the option that allows your Millennial buyers to get the home they want at an affordable rate. In Florida, Idaho, parts of Oregon and the Pacific Northwest, we’re seeing manufactured homes going for $300,000 to $400,000 due to the underlying value of the land the homes are sited on. Fannie Mae has manufactured home products such as the Fannie Mae MH Advantage and the standard MH loan. These products can combine a low downpayment with a low-interest rate and mortgage insurance that can be canceled once the homeowner reaches 20 percent equity. There are some nuances to manufactured housing financing lenders should be aware of including the limited number of states where the product is available and underwriting requirements. As with 203(k), correspondent lenders have the option to go delegated or nondelegated, if they prefer to be more hands-off. The challenges that Millennial renters, as well as older renters, face as they seek homeownership seem likely to continue into the foreseeable future. The cost of constructing a new on-site built home is not likely to fall, nor is HGTV going to stop promoting homes incorporating the latest design trends. And while most people change at least some of their attitudes as they age, we can’t count on Millennials to simply wake up and embrace outdated, expensive housing choices. It’s up to us, as an industry, to provide products that help renters transition into homeownership. Millennials might not be able to buy the 3,000-sq. ft. dream home, but with niche products, they can buy a home they can afford and still have the finishes and fixtures they need.

Jim Loving is the vice president of correspondent sales for Planet Home Lending. He has more than 35 years of mortgage banking experience including some of the largest correspondent programs in the country. Jim also has worked closely with the MBA on various committees. He can be reached by e-mail at JLoving@PlanetHomeLending.com.

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SHINING THE LIGHT ON

NON-QM

LEN DING

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Deephaven Mortgage is shining the light on Non-QM lending by providing products speciﬁcally designed to address the needs of millions of borrowers who are unable to obtain a traditional mortgage. In return, this allows originators to expand their business by reaching out to a broader group of borrowers. Help shine the light on Non-QM for your potential borrowers. Contact us by visiting www.deephavenmortgage.com and selecting either Correspondent or Wholesale. We look forward to you getting in touch with us today! Deephaven Mortgage® LLC. All rights reserved. This material is intended solely for the use of licensed mortgage professionals. Distribution to consumers is strictly prohibited. Program and rates are subject to change without notice. Not available in all states. Terms subject to qualiﬁcation. For more information on Deephaven’s state licensing, visit the NMLS Consumer Access webpage at http:// nmlsconsumeraccess.org/. NMLS #958425

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Millions of potential borrowers are locked out of today’s conventional mortgage market.

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How Independent Lenders Can Increase Homeownership and Better Serve the Borrowers of Tomorrow By David Battany hile the second quarter of 2019 saw impressive loan volumes for many lenders as lower rates drove refinancing, our industry cannot be distracted and complacent because of short-term successes. We still need to address major challenges looming for the next decade and more as new generations enter the housing market. Affordability and availability of single-family housing are major hurdles. Boomers are aging and staying put, reducing the supply of existing homes. Housing starts and building permit applications are far below pre-recession levels, while average home prices in many areas of the country are at record highs, pricing many first-time buyers out of the market. Our industry offers many lowdown or low monthly payment mortgage programs, but how many would-be buyers know these products exist? Many potential borrowers hold incorrect assumptions about what it takes to purchase a home, so we need to find ways to connect, build meaningful relationships and educate them about available options. There are paths to homeownership for many and new thinking can help more people get there. We can create opportunities to reach millennial and Gen Z buyers, despite obstacles such as affordability, student debt and a desire to delay major life milestones like getting married and starting a family. An increasing number of Millennials are entering their early 30s, approaching the average homebuying age and achieving income levels where owning becomes a desirable option. Many experts expect those from Gen Z, where the oldest are now in their early 20s, to have a significant impact on the housing market starting in the next decade. As independent mortgage lenders, we must be better at anticipating where our industry is heading, work to address these challenges and find ways to better serve the borrowers of tomorrow. Here are a few considerations.

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“When we look at the potential homeowners of tomorrow, we won’t see the typical W-2 salaried borrowers who may or may not have a bonus to put toward their downpayment. Our old credit models built around this type of individual won’t work as well.” What do the homeowners of tomorrow look like? When we look at the potential homeowners of tomorrow, we won’t see the typical W-2 salaried borrowers who may or may not have a bonus to put toward their downpayment. Our old credit models built around this type of individual won’t work as well. Lenders are more likely to see borrowers with thinner credit histories and multiple income sources. They may be self-employed, or have two or three sources of part-time income, perhaps from working as an Uber or Lyft driver or renting out one of their bedrooms through Airbnb. Regardless of the sources, they need lenders to look at income streams that don’t fit into the typical credit box. Lenders need to focus on better serving ethnic and cultural groups with significantly lower homeownership rates that are part of the Millennial generation entering the housing market. Black homeownership rates are at historic lows, and while Hispanics are making significant homeownership gains, a huge discrepancy remains versus

white homeownership rates. There are obstacles to bringing housing to these groups, but the demand will be there. This creates opportunity for our industry to find ways to enable qualified borrowers to purchase and stay in a home. Experts forecast an increase in female heads of households, which offers another opportunity to reach a growing segment. A recent report from LendingTree found that single women own 70,000 more homes in metro areas than single men. Potential Millennial and Gen Z buyers face record student debt, which reached an estimated $1.5 trillion in the U.S. last year according to a recent report from the New York Federal Reserve, keeping many would-be buyers from entering the housing market. A study from the National Association of Realtors (NAR) found that more than half of homebuyers considered student debt the biggest challenge to saving for a home. How can lenders serve the next wave of borrowers? How do we better serve these

homebuyers of tomorrow? To begin, we must place a greater emphasis on consumer financial literacy education. Consumers need to know the importance of financial planning, particularly in areas around homeownership, and the positive impact owning a home can have on their financial position. For example, those of us who work in the industry know that one late mortgage payment can result in a ding on a FICO score. A significant percentage of the U.S. population doesn’t know that. Many people understand that getting a credit card with a small balance, making a few purchases, using some credit and paying the bills off on time helps establish good credit. Others are never given this advice and have no idea how their credit can impact their ability to get a loan or the rate they would pay when they get one. Helping people understand the importance of maintaining good credit may seem like a simple step, but it’s an important one. Homeowner education should be a priority for our industry. People need to know what their responsibilities are and what they’re signing up for when they buy a house. How do you save for annual property tax bills, manage annual insurance bills or budget for the ongoing maintenance and necessary repairs of the home? What other responsibilities go with home ownership? As lenders, we can create programs to help people understand the process and responsibilities of owning a home, so they walk in knowing what’s involved and have the tools to be confident, successful owners over time. This educational focus can address misperceptions about the homebuying process and what it actually takes to purchase a home. Many people think they need a minimum of 10 percent or 20 percent to put down and don’t bother applying because they don’t have anything close to that amount for a downpayment. A lack of understanding about what is required for preapproval or a belief that getting a mortgage is a cumbersome, painful process might keep many potential borrowers on the sidelines. Others worry about the stability and security of homeownership. They saw their friends and families get wiped out in the Great Recession, or they are concerned about home

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David Battany is executive vice president of capital markets at Guild Mortgage. He has more than 30 years of experience in the mortgage industry. Before joining Guild in 2015, he served as chief product strategist at PennyMac, the nation’s largest nonbank correspondent lender, where he managed relationships with Fannie Mae, Freddie Mac and government agencies. He was previously with Fannie Mae, most recently as director of single-family business and lender relationships. He may be reached by phone at (858) 348-6006 or e-mail DBattany@GuildMortgage.net.

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Developing products that fit their needs We can serve the borrowers of tomorrow by offering innovative mortgage products and programs. Recent examples are Fannie Mae’s and Freddie Mac’s high quality manufactured home initiatives. These programs offer loans for factory-built homes that are indistinguishable from stick built homes and require only three percent down. The homes include open floor plans, high quality

materials, energy efficiency and more. In many cases, they cost 30 percent to 40 percent less than sitebuilt homes. Bringing more awareness of the benefits of this type of home, while dispelling some of the misconceptions around manufactured housing, can provide a new, quality option for potential homeowners. For example, at Guild Mortgage, we developed a program called 3-21 Home with The Home Depot to help borrowers buy their first home, make it their own and be in a stronger financial position when they move in. Under the program, a home can be purchased with as little as three percent down. Guild provides a $2,000 Home Depot Gift Card and a $1,500 grant that can be applied toward closing costs or increasing the downpayment after the minimum three percent investment is met. Lenders can make it easier for people to refinance, as well. We recently rolled out a mortgage option in partnership with Airbnb that considers short-term rental income from Airbnb as an acceptable source of qualifying income on refinance applications for owner-occupied primary residences. As proven over many generations, owning a home is critical to building equity and accumulating wealth. Having a fixed monthly payment provides financial stability and peace of mind knowing your rent won’t increase in the future. Homeownership helps provide security and stability to families, which in turn can help children get a positive start in life. These things matter and cannot be ignored, most notably in helping certain demographics that have been on the outside looking in for far too long. It’s time to do something about it. Whether it’s committing to better education, working to establish new qualifying standards or creating innovative products, independent lenders need to take a more active role and invest time, money and resources in helping more Americans enjoy the benefits of homeownership.

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prices going down and property taxes increasing. Some believe buying a home is a poor investment. I always advise people to not look at purchasing a home as an investment or speculation, but as a place they can afford to live in and be comfortable, happy and proud of their achievements. If there is temporary market downturn, they need to understand that’s a normal part of a regular economic cycle, and it is only a paper loss that will eventually go away as long as they keep making their payments. In the long run, they’ll be in a better financial position. Lenders need to be innovative in coming up with new ways to qualify. For example, in relying on DTI, we continue to focus on an archaic method of qualification based on a borrower’s gross income. People don’t pay their mortgages with their gross income. DTI doesn’t take into account very material differences about how people live or lifestyle events that impact their finances. FICO scores are another example. For people with a FICO, they are predictive and useful in forming a basis of eligibility and pricing. But future borrowers may not have traditional credit histories that fit within the current credit models. According to a recent Freddie Mac study, roughly 15 percent of White borrowers and about 25 percent of Black borrowers don’t currently have a FICO score. This means the FICO scores we use today as the basis of our underwriting approaches are not a perfect method for every borrower. We need to continue to have industry-wide forums and task forces to pursue new approaches.

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Finding Your Place in a Changing Field How lenders and TPOs can navigate today’s wholesale landscape

here was a time when the wholesale mortgage landscape could have been compared to a crowded, but functioning, field. These days, the industry functions more like quicksand— and a pattern of oversaturation has caused several big banks to shift their strategies to avoid getting stuck under their own weight. The headlines speak for themselves: Over the years, national names like Wells Fargo, Bank of America, U.S. Bank, SunTrust, Cole Taylor Bank and Santander Bank have exited the wholesale mortgage market, opting instead to focus on building their retail branch activity. Several market factors have impacted these moves. Beginning in 2017, rising interest rates significantly dipped into the profit margins of wholesale lenders. A lopsided supply/demand equation resulted in decreased production for some banks, and origination costs increased at an alarming rate for many lenders. This decline in demand was driven primarily by Millennials, who are renting longer and buying later, and housing costs that have been steadily increasing across the nation. As a result, people who would like to buy a traditional home are choosing instead to buy condos or manufactured homes. These shifts have left the remaining banks and third-party originators in a unique position. Savvy lenders can capture a bigger slice of the market by reaching TPOs with their product offerings. And TPOs can explore new partnerships to help them grow their business.

By Andrea Lefebvre

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Lenders: Make sure your marketing plays to your strengths Nearly every big bank to exit the wholesale market in recent years issued a statement about how the move would provide more operational bandwidth to highlight other parts of their

business based on a number of factors, such as: l

“These days, the industry functions more like quicksand—and a pattern of oversaturation has caused several big banks to shift their strategies to avoid getting stuck under their own weight.”

business. There is a lesson here for other lenders: You must know your strengths in order to play to them in your marketing, especially in a shrinking field of competitors. I have seen smaller banks try to rapidly increase their product offerings or decrease their turn times to entice new broker activity. These tactics may lead to short-term production, but there are long-term risks to consider. You may find more value in exploring new ways to enhance your existing benefits. This process should begin with an internal assessment of your products, personnel and customer service. We recently went through this process, and emerged with a clearer understanding of how to differentiate ourselves. After considering the equity in our existing name (Florida Capital Bank) and the opportunity to leverage our nationwide businesses, we shifted our brand to operate as FLCBank. As anyone who has worked

on a brand evolution can tell you, any change—even a subtle one—requires months of planning and coordination. Your mortgage and marketing divisions should be in regular communication. Any large-scale changes, such as a new logo, a redesigned Web site, or new collateral materials, should be thoroughly communicated to your bank’s mortgage brokers and correspondent lenders to ensure a consistent brand presentation in the market. TPOs: Ask the right questions The departure of large banks has a slightly different effect on TPOs. While lenders have the opportunity to increase their business, TPOs must adapt (and quickly) to ensure their loans can be fulfilled with minimal, if any, interruption. Not all lenders are created equal, though. TPOs should be prepared to conduct thorough research to identify the partners that will be the best fit for their

What products do you offer? At FLCBank, we focus on four core products: Conventional mortgages, government mortgages, jumbo mortgages and warehouse lines. A diverse portfolio makes sense for our business; other lenders specialize in one particular type of product. Knowing what types of mortgages are the best fit for your target customers will help you identify a lender that is ready to help you fund mortgages in a fast and efficient manner. Who can I call if I have a question? Your customers expect to know how to reach you, and you should have that same support from a lender. Research the communication methods available to you prior to entering a business relationship with a new lender. If you have an urgent request or question, will it be handled by a 24/7 call center? Or will you have a dedicated account representative with a direct extension? What is your process for conflict resolution? Knowing the answer to this question before a conflict arises can save you (and your customers) a lot of time and mental energy. In a perfect world, every loan application would be processed smoothly. But not every loan is a cookie-cutter loan. Even in the commodities of Fannie Mae and Freddie Mac products, there is the likelihood that questions will eventually come up for one of your loans. If the loan falls off the track, knowing how your lender will respond can bring calm to an otherwise chaotic moment. How does your compensation work? One value of a mortgage broker is their ability to compete using either a Lender Paid or Borrower Paid plan. When

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choosing a Lender Paid compensation plan, make sure to explore the option to incorporate minimum and maximum caps on your pricing compensation in order to competitively position your product, price and service attributes. The lowest price does not necessarily win the deal, but rather a balance of price and service execution to meet purchase contingency dates will matter most with consumers and real estate agents. What is your capital market policy on extensions when a loan falls outside the initial lock period? In a decreasing rate environment, the capacity to manufacture loans from application to closing is tested and stretched. Understand the cost of extending a loan in either a decreasing or increasing rate environment. Generally, if a lender’s turn times are stretched in a decreasing rate environment, they may provide a courtesy

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or reduce the cost of extending the lock. Being prepared in advance of extenuating events that could add to the cost of a loan is a critical component in meeting consumer and real estate agent expectations—and could help you earn your next referral. What is your turn time? Transparency in this area is important. If you don’t know what to expect from your partner’s turn time, you cannot set reasonable expectations and timelines for your customer. As turn times expand due to the volume of refinances in a decreasing rate environment, does your lender prioritize purchase business? As a business partner, sending consistent business to an investor may provide you extra perks by having your loans go to the front of the queue or having a dedicated team of underwriters and processors to support your business.

What is your average staff tenure? Advances in technology have streamlined the loan process, but an experienced mortgage professional is still essential to successfully closing complex loans. Ask your lender about their staff’s level of experience and average tenure. And if either number seems suspiciously low, consider partnering with another lender. You deserve the peace of mind that comes with knowing that your customer’s loan will be handled by a professional.

Seeing opportunity in challenging times The mortgage industry has always been attractive to people who genuinely perceive

challenges as opportunities, and the current state of the wholesale lending field is simply the latest iteration. How you choose to interpret the field’s development will define your level of success. For lenders, a narrowing of focus can help you emerge as the partner of choice for your target customer. Adjust your marketing strategy, if necessary, to highlight your strengths and capabilities to attract quality TPO clients. TPOs should be mindful of the qualities that matter most to them in a lending partner. There’s an old saying about fast, good, and cheap; if you can only pick two, choose wisely. Your customers’ satisfaction—and, therefore, your success— depends on it.

Andrea Lefebvre is managing director of production for FLCBank. Her tenure in the third-party origination space includes 14 years as northeast regional manager and national credit committee co-chair at SunTrust Mortgage, as well as being recognized as Affiliate of the Year for the Northeast Brokers Association. She may be reached by phone at (617) 899-1428 or e-mail ALefebvre@FLCB.com. 89

https://nmpmag.com/best-military-lenders-2019

For the “Best Military Originators,” we make our selection based on the following criteria: H Total VA loans closed in 2018 under that originator’s name; H Votes on profile; and H A brief essay on why they’re committed to helping active service members and veterans. Click here for the nomination form for "Best Military Originators":

https://nmpmag.com/best-military-originators-2019 The nomination deadline is Wednesday, October 23rd. Honorees will be showcased in National Mortgage Professional Magazine, both online and in our November 2019 print edition, and on Mortgage News Network.

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For the “Best Military Lenders,” we will make our selection based on the following criteria: H Total VA loans closed in 2018; H Support efforts and community outreach (charity work, etc.); H The number of Mortgage Originators who have submitted their nominations for “The Best Military Originators.” Click here for the nomination form for "Best Military Lenders":

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National Mortgage Professional Magazine is seeking the best Military Lenders and Mortgage Loan Originators to include in its “Best Military Lenders and Originators” feature in our November 2019 issue.

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Four Tips for Staying Ahead of the Technology Curve By Tedd Smith hen it comes to keeping up with technology developments, the trick is to get ahead before you’re behind. Where technology might be considered “extra” or optional now, it will not be that way for long. Automation and technology solutions are transforming every aspect of consumers’ and businesses’ lives and quickly becoming the standard for everything they do. For this reason, lenders must focus on staying ahead of the technology curve. It is important to note that there is a big difference between keeping up and truly getting ahead. Lenders that want to be successful must be leading the charge, not sitting on the sidelines ... especially for smaller institutions that need to compete with the larger financial institutions. In addition to being proactive, lenders have to keep a few things in mind when selecting the right technology to help them get ahead and stay there. Lenders should be looking for one solution with smart automation and simplified vendor management. When they are able to marry the right solution with the right strategy, these lenders will be far ahead of the curve. Let’s break down four tips to including technology into your robust lending offerings:

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1. Don’t be a follower Staying ahead is all about being a leader. Lenders that want to stay ahead of the curve must first make the smart moves before they become the norm, because once they are the norm, a new standard will likely be on its way. Innovation never stops, which means simply keeping up is not an option. Instead of waiting for everyone else to adopt technology first, lenders that want to be successful must be the first ones to make the move. 2. Look for one solution Now, the lenders that recognize the need to adopt technology

quickly also need to know what to look for. A key component of the right technology solution that can help lenders get ahead and stay ahead is having one solution that encompasses a multitude of different needs. A lender can adopt all the technology solutions available, but too many solutions – however great they may be individually—can present some challenges. The first one is the issue of toggling back and forth between solutions. These extra steps take time and could lead to confusion. Having everything lenders need in one solution— even in one screen—could greatly simplify their workload and reduce confusion. In addition, having disparate systems can also present a security issue with multiple access points to customer information like name, address, Social Security Number and other personal information that puts them at greater risk of hackers. Another challenge of having too many different solutions is the possibility of the solutions not working together or interacting. Solutions that cannot connect often defeat the purpose of implementing technology in the first place. The goal of any solution is to make a lender’s job easier and having products that all work together on one platform does just that. Also, the more separate solutions a lender adds, the more costs will pile up. This means extra invoices and extra expenses for solutions that might not work together to bring the desired results. Also, dealing with multiple separate systems means constantly dealing with separate technology updates and managing downtimes, etc. The final challenge of implementing too many different technology solutions is that of training. The more solutions a lender adds, the more there is for staff to learn. This means they must spend more time training, which could cost lenders in the end. Too many different solutions could also add to confusion for staff, memorizing the different

up workflows and even reduce human error. In addition, it also presents an opportunity to increase sales.

protocols for operating each solution. Having too many different technology products might not be the most sustainable approach. Looking for one platform that provides easy navigation and consistent results is key. One single platform also comes with the added benefits of one screen, one invoice and one platform for staff to learn, creating cost and time saving efficiencies that could help lender stay ahead of the technology curve—and their competition. 3. Choose the smart solution To take it a step further, lenders must look for a technology solution that is able to do more with the data it’s been given. Standard automation is great to simplify data input and so on, but having a solution that knows what decisions to make based on that data is what will help lenders stay ahead. Intelligent solutions that are able to look at property or borrower data and make decisions for lenders of what title or valuation report would be best will make a huge difference. AI and decisioning logic are making their way into everyday life and lending is no exception. Having technology that is able to make intelligent decisions can speed

4. Find a solution that simplifies vendor management The final thing lenders should be looking for in a technology solution is simplified vendor management. Vendor management and due diligence can be a difficult, expensive and time-consuming task for lenders. Choosing a solution or partner that is able to take on the burden of vendor management and due diligence can free lenders up in terms of time and cost and allow them to work more efficiently. Having someone working on their behalf to find the best vendors and track their performance can help lender more easily decide when they might need to switch vendors and who they should switch to, based on their needs. By simply partnering with the right company that has the right solution, lenders no longer have to dread due diligence and vendor management. Also incorporating a prominent tech partner reduces the need for additional headcount to help manage disparate systems and the processes and procedures to run efficiently and in a compliant manner. Any of these steps is a step in the right direction. Following even one of these four tips will help lenders get ahead, but finding a solution that meets all these criteria will be sure to keep lenders ahead of the technology curve.

Tedd Smith is CEO at Austin, Texas-based FirstClose, a provider of best-in-class property and borrower data intelligence and settlement services nationwide. FirstClose specializes in delivering a powerful Web app and LOS plug-in home equity and refi tool that offers everything from application to servicing (credit score, valuation, title, tax, flood, closing and recording) on one easy-to-navigate platform.

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If You’re Not Ahead, You’re Behind By Matt Tully

“Change is inevitable. Growth is optional.”—John C. Maxwell s any participant in the mortgage industry can attest, change has been a constant theme, especially when it comes to regulatory compliance. One of the most common challenges facing mortgage professionals today is how to “keep up” with all the changing rules and regulations that impact our industry. The answer is simple: Don’t just keep up, keep ahead. The reality is that if the goal is simply to keep up, you will always fall short of this aspiration. Why? Because the path followed by the new law or rule is often long and winding, and the timeline for implementation is typically short and unforgiving. While keeping ahead may sound like the impossible task, it is certainly attainable if your organization prioritizes three vital steps: l First, pay close attention to what policy makers are doing; l Second, utilize networks to gain better intelligence on how the industry is thinking about change; and l Third, optimize your teams for success.

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The first step in getting ahead of regulatory changes is to pay attention to the headlines and to closely monitor how policymakers react. Policymaking does not happen in a vacuum. Policymakers, whether in the Congress, the 50 state houses or at regulatory agencies, are responsible for reacting to perceived shortfalls in public policy. To see this phenomenon at work, look no further than the Sarbanes-Oxley Act as a response to accounting scandals in the early 2000s, the Dodd-Frank Act as a response to the financial crisis, or the recently passed California Consumer Privacy Act as a response to growing concerns around data privacy. In each of

“One of the most common challenges facing mortgage professionals today is how to ‘keep up’ with all the changing rules and regulations that impact our industry. The answer is simple: Don’t just keep up, keep ahead.” these examples, the response evolved over a series of months, or even years, as part of the policymaking process. Bills don’t simply become law over night, but must follow a complicated path through hearings, committee mark-ups, floor consideration, and ultimately, passage and signing. Similarly, new regulations must go through notice and comment periods before being finalized. Paying attention to these processes and how they evolve is key to staying ahead and understanding where a new law or regulation is headed. In addition to observing policymakers, the second step involves utilizing your professional network to better understand industry change. If you belong to one or more of the preeminent housing trade groups, such as Mortgage Bankers Association (MBA) or the Housing Policy Council (HPC), you have already surrounded yourself with an intricate network of industry

knowledge. Both groups are staffed with policy experts and industry lobbyists who help navigate how proposed bills and regulations will impact the mortgage ecosystem. The MBA and HPC also convene regular working groups with other industry participants. Such forums provide opportunities to interact with the best and the brightest of our industry, and to participate in discussions about how regulatory change will impact the mortgage ecosystem. The third and final step is to pull together the information gathered from steps one and two

to ensure that your compliance group is well-informed and fully-optimized for success. How does a progressive company accomplish this? Mortgage software companies, for example, provide their clients with technology to navigate the complexity of mortgage servicing. Such organizations must keep far ahead in the game of regulatory requirements. Because the software development process is by nature, complex, compliance teams must not only plan ahead to understand what each regulatory change is, but also be able to help their organization understand how it will impact technology offerings. Only with a combination of crosscollaboration from product and development teams, as well as a solicitation of feedback from clients, is it possible to get the design right. It is not enough, however, to simply provide good analysis; it is also important to remain connected through the software development lifecycle to ensure that the ways product changes are designed appropriately to reflect the regulatory change initially identified. The process of keeping ahead of regulatory change requires vigilance. Monitoring what the policymakers are doing, utilizing networks and as ensuring that change is being effectively communicated to internal stakeholders, is laborintensive and requires organization. A successful compliance team ensures that they are contributing to the delivery of a best-in-class experience for clients and their borrowers; keeping ahead of regulatory change is ultimately what positions organizations to be able to reach this objective every day.

Matt Tully is vice president of agency affairs and compliance for Sagent Lending Technologies. He may be reached by phone at (844) 724-3687.

URE OF MORTGAGE BANKING

a special focus on THE FUTURE OF MORTGAGE BANKING

Growing Influence of Artificial Intelligence and Automation in Mortgage Processes and Lending By Vladamir Kovacevic

compliance with ongoing regulations. With updated AI systems, legal documents can be more easily found and organized. By improving the way documents are held in a secure environment, there leaves little room for error. This is especially true with systems that have the capability to flag the lender when they are missing legal necessities in a document, such as a signature. In conclusion, standardization

of processes utilizing AI can help mortgage lenders to provide better customer service, increase efficiency and save money over time. Rather than making simple and costly upgrades to separate existing systems, using a business process management system with integrated artificial intelligence that connects all systems into one will significantly improve operations for mortgage lenders.

Vladamir Kovacevic is the co-founder and managing partner of Inovatec, a software provider to Canadian financial institutions. Inovatec’s products are designed for origination, processing and management of loans and leases across a broad spectrum of credit quality and asset types. 93

n National Mortgage Professional Magazine n OCTOBER 2019

find status on documents and mortgages in real-time. If the systems were tied at an operational level, anyone in any department could pull a real-time status update for a customer, allowing for quicker decisions and better customer service. The development of artificial intelligence tools is enabling new systems to be completely process-oriented. All functions can be tied together creating a transformative system that can be utilized for years to come. While some organizations may be taking full advantage of advanced AI technology integration, others are simply upgrading the technology they currently use. Essentially, allowing for very little organizational change and “doing what one’s always done” just in a faster way. Mortgage companies that excel in their processes understand that small upgrades simply do not provide the same level or organizational transformation that a complete process management system enables. Not only does the integration of a process management system improve internal efficiencies for mortgage lenders, but AI digitalization offers lenders an opportunity to engage with their customers on a more personalized level, encouraging stronger customer relationships by using AI to enhance their experience. For example, some process systems will allow for lender customers to log in and view actionable items themselves, rather than requiring a customer to call or e-mail their lender. The same system can allow for customers to upload documents and necessary items directly through a portal, which can be placed directly into the process management system rather than requiring the customer to scan and e-mail documents, and then requiring internal personnel to upload them. Not only does this better serve the customer, but quickens the process internally for lenders. Furthermore, the standardization of processes helps mortgage lenders to stay in

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oday’s leading financial institutions in the United States are investing millions into updating their capabilities through the use of artificial intelligence (AI). Automation affects almost every industry today in one way or another. More specifically, the mortgage industry continues to see change in regulations and compliance, increasing the need for stronger processes in internal and external systems. Many of today’s mortgage firms are realizing that they have missed the mark in their processes and internal systems, specifically as artificial intelligence capabilities increase. In most of these organizations, there are many disparate management systems that are used internally throughout the lending process to simplify and organize documents and records. There may be a system used by the accounting department to manage finances and transactions, another system used by the marketing department to increase lead generation, and another LOS (Loan Origination System) used for processing documents. Many organizations face difficulties in streamlining these processes, blending all facets together as one unit. The accounting system, the marketing system, and the LOS system are all independently run, with no connection to each other. Each system in itself works to be customer-centric to provide a more positive customer experience before and after a transaction is completed. However, processing systems would actually be more customer-centric if they were interwoven. For example, the accounting system runs independently from the LOS system, and both may store their data in a singular data warehouse that ties all functions together. Yet, these systems are tied together only at a data level, not at an operational level. Because they are tied at a data level, it’s nearly impossible to

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

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

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HEARD ON THE STREET continued from page 33

OCTOBER 2019 n National Mortgage Professional Magazine n

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dreams of homeownership. With more than 25 years of experience, Sue Farrar will be leading the Traverse office as a senior home loan specialist. She is licensed in multiple states, including Alabama, Arkansas, California, Florida, Kentucky, Pennsylvania, Tennessee and Michigan. “I’m a proud Michigan resident–I love the beautiful weather and wonderful people in Traverse City,” said Farrar. “As a native, I look forward to supporting homebuyers’ needs by providing the right tools and an outstanding experience to make the process seamless and enjoyable.” Matt Clarke, COO and CFO of Churchill Mortgage, said: “This new office expands our reach and provides an opportunity to help locals find homes, taking advantage of the ability to lock in excellent rates with our Rate Secured program. Our program allows buyers to shop for a home without fear of surprise expenses. These services and Sue’s experience will ensure a better homebuying experience for the Traverse City community.”

via phone, email and spreadsheets. With our secure, seamless integration with Encompass, PollyEx is powering the mortgage loan sales process with innovative technology designed by our team of mortgage industry professionals. We look forward to a long, successful partnership with Ellie Mae.” Parvesh Sahi, SVP of business development for Ellie Mae, said: “We’re excited to partner with PollyEx and expand the power of the Encompass Digital Lending Platform. Ellie Mae is always looking at ways to digitize the entire loan process from consumer engagement to delivery. The seamless integration of PollyEx’s innovative Nexus Exchange with Encompass will allow our customers to further realize process efficiencies and cost savings from origination through sales execution, furthering the promise of a complete and true digital mortgage.” Maxwell Partners With Integra’s EPIC LOS

SaaS Provider PollyEx Teams Up With Ellie Mae

PollyEx Inc., a provider of SaaS solutions for the mortgage industry, has announced that its Loan Trading Exchange is now integrated with Ellie Mae’s Encompass Digital Lending Platform, through Ellie Mae’s Encompass Partner Connect API technology. PollyEx’s cloud-based platform seamlessly connects buyers and sellers of mortgage loans, increasing liquidity and automating capital markets functions. The bi-directional API integration enables mortgage lenders to effortlessly share their “for sale” pipeline from Encompass and, in turn, receive loan-level pricing and other settlement data upon loan commitment. “PollyEx is thrilled to partner with Ellie Mae on our nextgeneration loan trading platform,” said PollyEx Founder and Chief Executive Officer Adam Carmel. “Remarkably, loan trading is often conducted

Maxwell has announced a strategic partnership with Integra to offer seamless, bidirectional integration with Integra’s EPIC Loan Origination System. “As we collaborated with Maxwell to build this integration, we were committed to creating an integration that surpassed others of its kind in both quality and functionality,” said Mike Picker, vice president of sales at Integra. “Our partnership with Maxwell is a game-changer for the countless lenders who use Integra every day to make their borrowers’ dreams of homeownership a reality.” The bi-directional integration between Maxwell and Integra will enable lenders to send loan applications, synchronize borrower documents and trigger status notifications to borrowers and real estate agents without ever leaving Maxwell. “We saw a prescient need in the industry for an intuitive, bidirectional POS integration with

Integra’s LOS and we’re thrilled to partner with them to bring this vital integration to market,” said Lindsay Hunt, head of product at Maxwell. “We’ve worked tirelessly to build a strong partnership so we can provide something efficient and beautiful to fill that void and empower lenders that rely on Integra to streamline their process and focus on the relationships at the core of the mortgage experience.”

culture of continuous improvement in each of our service lines,” Sindell said. “We have a number of technology and process improvement initiatives underway that will position us as best-of-breed in our industry.” Mid America Mortgage Selects ReverseVision to Help Launch HECM and Reverse Products

BSI Financial Forms Real Estate Firm Entra Solutions

BSI Financial Services has announced the formation of Entra Solutions, an independent company that will provide title, escrow, default management and real estate services to lenders and investors that originate, purchase or service mortgage loans. Entra Solutions will combine the operations of four existing companies: Entra Title Services, a nationwide provider of property title insurance; Entra Default Solutions, a foreclosure management company operating in Arizona, California, Nevada and Texas; Entra Asset Management, a national company that provides asset recovery, valuation and property disposition services; and Entra Escrow Services, which provides property escrow services in California. “By virtue of its capabilities and experience, Entra Solutions is positioned to offer clients a comprehensive suite of property services through one convenient point of contact,” said Gagan Sharma, president and chief executive officer of BSI Financial. “The human and technology resources represented in the combined businesses will enable us to provide services that are cost effective and easy for our clients to use.” Entra Solutions will operate out of its new headquarters in Irvine, Calif., under the direction of Brian Sindell, senior vice president. A 12-year veteran of the mortgage finance industry, Brian has led asset management initiatives for LandAmerica, NRT REOExperts and 3Point Asset Management, in addition to BSI Financial Services. “Forming Entra Solutions enables us to foster a top-down

ReverseVision has announced that Mid America Mortgage Inc. has selected its flagship reverse loan origination system (LOS), ReverseVision Exchange (RVX), to support the introduction of HECM and private reverse mortgage products. Instead of developing a proprietary reverse origination solution in-house, as Mid America has done with its forward LOS, the multi-state lender chose to partner with ReverseVision because they are the industry’s foremost experts on reverse mortgage execution and technology development. Utilized by each of the top-10 producing HECM and reverse lenders, RVX’s end-to-end reverse origination platform connects all participants across the reverse mortgage lifecycle, allowing them to exchange information throughout the loan process. “Mid America has always sought opportunities to establish itself in underserved areas of the market, and reverse mortgages are a prime example,” said Mid America Owner and Chief Executive Officer Jeff Bode. “Adding reverse mortgages to our existing product mix allows us to better cater to the unique financial needs of senior borrowers and foster customer retention by offering financial products relevant to borrowers at every stage in life. Given ReverseVision’s reputation in the reverse mortgage space, we knew the firm was the only partner we could trust to power our reverse division.” To foster an informed borrower experience and strengthen customer relationships, Mid America has appointed HECM lending specialists to guide seniors through the HECM lending process, led by Mid America’s newly appointed Director of HECM Lending Dan Barksdale.

Opendoor Debuts Mortgage Division

SOVIK SWANSON MCGILLIS

SRINIVASAN

RATTER

FRAAS

Class Valuation, an appraisal management and

Planet Home Lending has announced Muthu Srinivasan as the company’s new chief technology officer (CTO) and that Jeffrey Ratter has joined the company as chief information officer (CIO).

MAC PHERSON

OpenClose has announced that Allen Pollack has joined the company in the newly created position of vice president of product innovation, where he will assist OpenClose in continuing to expand the level of innovation invested in its customers and the industry to deliver business-altering products and processes.

Academy Mortgage, headquartered in Draper, Utah, has named James MacPherson as its new CEO. continued on page 100

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n National Mortgage Professional Magazine n OCTOBER 2019

POLLACK

Mortgage professionals to watch

Total Expert has added three new executives to its growing leadership team– Chief Revenue Officer Steve Sovik, VP of People Operations Deanna Swanson and SVP of Marketing Peggy McGillis.

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Opendoor, the San Franciscoheadquartered online real estate marketplace, has launched a mortgage division called “Opendoor Home Loans.” The company stated the new division will offer competitive interest rates and no lender fees, and its launch will include a limited promotion where it provides up to $1,000 towards buyer closing costs. Opendoor added that it will close its loans on the scheduled closing date and will credit the buyer $100 per day for every day delayed. “Financing is one of the most complicated and intimidating parts of a home purchase,” said Nadia Aziz, head of Opendoor Home Loans. “It typically takes 45 days for buyers to finance and close on a new home. That’s 45 days of uncertainty, anxiety and stress that we can cut in half with Opendoor Home Loans. In the last 10 months, we’ve built a mortgage business from the ground up that combines savings, convenience and certainty into a simpler, more transparent process for buyers. It takes us one step closer to providing an end-to-end experience where you can buy, sell or trade-in a home in just a few clicks.”

real estate collateral valuation company based in Troy, Mich., has promoted John Fraas from president to CEO.

NEW TO MARKET continued from page 13

services and innovative solutions tailored to each customer’s strategy. It’s an exciting time for the SFR market, and we continue to listen to our customers’ needs and develop solutions that fully support them.” MISMO Rolls Out iLAD

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MISMO has released the Industry Loan Application Dataset (iLAD), a compendium of data points included in the new Uniform Residential Loan Application (URLA), the governmentsponsored enterprises’ (GSEs) new Automated Underwriting System (AUS) interfaces, and in the existing Fannie Mae 3.2 file. iLAD, which uses MISMO’s v3.4 Reference Model, is designed to replace many of the peer-to-peer data exchanges that utilized the Fannie Mae 3.2 file, which will not be updated for changes to the URLA. The iLAD is being released for a 60-day comment period for MISMO members, with the comment period concluding on Nov. 3. “It’s imperative that we have a standard process to allow the seamless exchange of loan application data between all industry partners,” said Rick Hill, executive vice president of MISMO and MBA Vice President of Technology. “Standardized data exchanges developed in a consensus manner are a prerequisite for the industry for it to continue to successfully digitize its processes, find new ways to serve consumers, and drive down costs.” InMotion Releases Sluice Blockchain Technology

InMotion Software has announced the release of Sluice, a workflow management platform that leverages blockchain technology to bring greater transparency and security to the residential appraisal industry. Sluice’s distributed ledger database allows multiple users to work on the same valuation orders, while storing a

comprehensive history of changes made during the appraisal timeline. By automatically merging property data into appraisal reports as the data is being collected in the field, Sluice significantly enhances the speed and efficiency of fulfilling orders in a mobile environment. Sluice also integrates seamlessly with any appraisal management system, enabling appraisal and appraisal management companies to perform and manage real estate valuation assignments in realtime, without the need to switch to a new platform. Prior to launching Sluice, InMotion partnered with experts in the mortgage industry to research and deploy blockchain technology to the benefit of appraisers and other valuation experts as they evaluate real property collateral in the field. By incorporating technology that provides immediate, two-way communication, Sluice allows users to get directions to a subject property, manage their tasks, generate floor plans with Sluice’s built-in tools, upload geo-tagged photos, fill-out required or proprietary forms and take notes. Sluice is specially built to work just as well offline should an assignment take an appraiser off the grid by uploading data to the appraiser’s server once the data connection is restored. Sluice is already supporting several national AMCs that are using it to administer their order workflow, enabling their users to accept, manage and submit all the data they collect during the course of any assignment. AMCs using Sluice have been able to realize significant improvements in turnaround time, better communications with workers in the field and improved first submission quality, leading to less rework.

phone. The mobile application provides a new access point to MCT’s cloud-based capital markets software platform, MCTlive!, and is now available in the Apple App Store. The MCTlive! mobile app allows users the flexibility to manage essential secondary marketing activities on-the-go. Users can check pipeline coverage, send bid tapes for pricing, conduct best execution analysis, commit loans to investors or agencies, review reporting and more. “Where some providers claim to put secondary marketing in the hands of their customers, MCT literally puts it in their hand,” said Phil Rasori, chief operating officer of MCT. “The MCTlive! mobile app is the first in a series of new innovations allowing users to do their jobs on-the-go. In an industry marked by consistent change, you need technology that allows you to change with it. That’s why we’ve launched a native iPhone app: Because market changes don’t wait for you to get to the office.” Asurity Technologies Launches AsurityDocs Platform

Asurity Technologies has announced the release of the AsurityDocs platform, bringing an enhanced and modernized interface and better user experience to the market. The AsurityDocs platform generates residential mortgage loan packages fully compliant with investor requirements, as well as state and federal regulations. With this upgrade, AsurityDocs’ comprehensive compliance engine now features: A fully updated design; enhanced data integration capabilities; electronic signature, consent and disclosure tracking; audit trails for document change management; and compliance dashboarding. The platform upgrades enable more seamless loan origination and MCT Debuts MCTlive! more confident quality assurance. Mobile Application “We acquired the Mortgage Resource Group (MRG)’s mortgage docs business in 2016 with the intent to create the best Mortgage Capital Trading Inc. mortgage origination document (MCT) has announced the launch business in the industry under the of its MCTlive! mobile application, Asurity brand,” said Asurity enabling secondary marketing Technologies Chief Executive managers to review reporting, Officer Andy Sandler. manage loan pipelines, and “AsurityDocs is now a fullyconduct whole loan trading from modernized and dynamic loan the convenience of their mobile origination document system with

the most functional and user friendly UI in the mortgage origination process. We will be announcing further product enhancements and compliance solutions in the months ahead.” PointPredictive Introduces IncomePASS Income Verification Solution

PointPredictive is now offering IncomePASS, a machine-learning AI-based solution designed to offer an assessment of a loan applicant’s stated income through a real-time clearing of validated incomes. According to the San Diegobased company IncomePASS analyzes a borrower’s stated income against millions of reported incomes and salaries from seven sources. The system culls the applicant’s employer, occupation, job title, residence and estimated years of experience to predict the borrower’s likely income. When the borrower’s stated income is within 15 percent of the model’s prediction, the lender is alerted to proceed with the application process without additional manual income checks using paychecks or bank statements. The company added that its solution can also predict the likelihood of default predictions. PointPredictive is positioning its solution as an alternative to The Work Number and manual reviews of financial documents. “Traditional legacy tools are expensive and provide incomplete coverage,” says Tim Grace, CEO of PointPredictive. “Employer-based database verification checks can typically verify income on less than 30 percent of the applicant submissions, leaving 70 percent of stated incomes to be confirmed by paycheck reviews, many of which are fake paycheck submissions. Replacing these solutions with IncomePASS will enable 100 percent coverage across a lender’s portfolio and enable significantly less friction between consumers, lenders and dealers in funding loans.” SimpleNexus Launches New API

SimpleNexus has announced the availability of an application program interface (API) and webhooks that enable mortgage lenders to establish real-time data continued on page 102

THE BECKWITH BLOG continued from page 31

Christine Beckwith is a 30-year mortgage industry veteran who has broken many glass ceilings and has blazed a trail for many female professionals to come. Christine is currently president and chief operating officer of 20/20 Vision for Success Coaching and Consulting, a decorated, sought after and award-winning leader. Christine may be reached by e-mail at Christine@VisionYourSuccess.net.

A Message From MAA Chairman Jeffrey C. Taylor continued on page 84

Why join MAA? he Mortgage Action Alliance (MAA), the Mortgage Bankers Association’s (MBA) free grassroots advocacy network, is a critical program supporting the real estate finance industry. Our policymakers need to understand the potential benefits and consequences legislation could have on the real estate finance industry, and that starts with involvement from industry professionals like you. They need to hear directly from you to explain how their actions affect you, your company, and the customers you serve.

MAA by the numbers l MAA currently has more than 21,000 industry-wide active members. l Three companies have more than 1,000 employees enrolled and five companies now have 100 percent employee participation in MAA. 99 How can WE make a difference? The more MAA members we have, the stronger our voice will be as we play an active role in how laws and regulations that affect our businesses and customers are created and carried out by lobbying and building relationships with policymakers. l l

l l

Sign up for MAA: Signing up for MAA takes no time at all. Go to MBA.org/MAASignUp to join. Download the app: Advocate from anywhere. The Mortgage Action Alliance App can be found on the App Store and Google Play. Follow us on social media: Follow us on Facebook and LinkedIn for the latest legislative updates. Start your own campaign: Help us continue to grow our grassroots ranks by running a MAA enrollment campaign at your company or office. Check out our Campaign Kit for everything you need to encourage your industry colleagues to join and participate in the Mortgage Action Alliance.

Thank you for your help and support! Together, we are able to amplify our voice and drive positive change for our industry in Washington, D.C., and across the nation.

Jeffrey C. Taylor is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. Jeffrey is also co-founder and managing director of Digital Risk, a provider of mortgage risk, compliance and transaction management solutions. His is a frequent guest on financial television networks, such as Fox Business News and CNBC, as well as a source to top tier new outlets including The Wall Street Journal, sharing keen insights on the U.S. mortgage market and the economy.

n National Mortgage Professional Magazine n OCTOBER 2019

choose healthy foods. They make better choices. So, with all of this in my mind and now part of my new workshop, I realize that we aren’t passengers on a ride in our lives, we are the drivers. Often, we think things “happen” to us and more recently, I have asked myself when bad things happen, “What could I have done differently” to avoid exactly where I am at in this bad thing happening and believe it or not, many times I see the err in my rear view mirror. Yes, bad things happen that we are not to blame for, but where did we not listen to our gut, when did we let evil in, or fall from the path we knew was the best one for us, out of pressure, out of fear, out of exhaustion. These things often send us down knowingly bad paths. Eating poorly out of lack of time, comes to mind for example. “I had no time to make the healthy dinner, so I picked up take out.” But could take out have been healthy if we made a different choice still for the sake of time? Yes, being positive and being in a state to “Build and Broaden” comes with many choices that every day, we need to steer the course for. I am now in the driver’s seat, and today, as I head off for this life-changing moment, I realize more than ever I am steering the course in the right direction and for all that I can control, I am making better decisions for myself. I am happier as a result and there is no question I am “Building and Broadening” and spreading my happiness all around me. I have had so many people in my life and career try to push me down the negative path and sometimes unknowingly, I’ve followed only to find myself deeply down a dead-end road that is making withdrawals from my life every single day. I am a living testament you can change course. You can change the direction of your life and business. You can steer yourself and people impacted by you towards happiness. It is no longer a theory, it’s a fact that the “Undeniable discovered path to success” is out there, but the question for all of us is “Will we accept responsibility for placing ourselves on that path?”

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environment were more rested, slept better, healthier and they were thinking and growing, they were creating and inspiring. The act of feeling happy was breeding happiness, so in and of itself, feeling happy was a self-fulfilling prophecy in life. All of this was wonderful and seemed obvious of course, but Fredericks would expand on the “Broaden and Build” theory. The greatest discovery she would come to in the positive group is how it spread. How happy people truly contributed to the continuance of others being happy, as if the mere elation of a human in a happy state made them want to “Broaden” the effect and “Build” upon it. That not only did they want to spread happiness, but they also wanted to “Broaden and Build” deeper into their lives. They nested at home, did more home improvements, fundamentally and literally building upon their living environments as if to secure their surroundings so they could hold in this place of happiness. Now, the biggest obstacle for her discovery would be acceptance. People who reviewed the study asked questions like: “How can this be sustained in a world wrought with hate, hurt, illness, divorce, job loss and so on?” And the answer was simple: “We have choices to make and we have things we can’t control”… and obviously we can’t avoid the bad things always, sooner or later, the bad things sneak in and it is unavoidable to get through life without that happening of course. That said, the sooner we can process the bad feeling and get past it, no matter how hard we had to work to process and move back into a happier state, THAT needs to be our focus. And of course, what responsibility do we take daily to be in a state of happiness or rather to avoid the negativity. Do we pick selfhelp books or happy ending movies, or who we choose to spend our time with? Do we block out negative people who are taking us down? Do we avoid the news maybe (like in the positive study group) as it only lent to negative feelings at the start of every day? What about our health? What choices do the most successful people make? They are regular exercisers, they tend to

MBA’s Mortgage Action Alliance

HEARD ON THE STREET

RE/MAX Holdings Inc. has announced Nick Bailey has returned to the company in the newly created position of chief customer officer.

WEST, a Williston Financial Group Company, has appointed long-time industry professional Darcy Patch as vice president of marketing, lender services where she will lead the marketing and communications strategies for WFG’s Enterprise Solutions Group.

Mid America Mortgage Inc. has announced the promotion of Michael Cooksey, founder of Mid America’s most successful branch, The Cooksey Team, to executive managing director of production.

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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 2019 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-2019

100

OCTOBER 2019 n National Mortgage Professional Magazine n

LenderClose has announced the addition of Relationship Manager Jesse Scott and Sales Representative Connor Sorge to its team in Des Moines, Iowa.

KEENAN

COOKSEY

Mortgage Network Inc. has announced the addition of Jeffrey Gable as a loan officer in the company’s York, Penn. branch.

PATCH

SORGE

GABLE

BAILEY

SCOTT

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WSFS Mortgage, a division of WSFS Bank, has named Patrick J. Keenan as its new senior vice president and director of mortgage sales. Equity Prime Mortgage’s Chief Financial Officer Philip Mancuso has been promoted to the role of chief revenue officer. Mancuso will continue to cover finance, GSE and Ginnie Mae securitization and delivery, secondary marketing, capital markets and fulfillment. MISMO has announced that Jonathan Kearns has joined the organization as vice president of technology. Under MISMO’s management by the Mortgage Bankers Association (MBA), Kearns will also serve as MBA associate vice president, product development. Equity National Title has named Mike Krone Esq. as its new senior vice president, corporate development, where he will focus on corporate development, especially in his native Massachusetts market. The Mortgage Bankers Association (MBA) has announced that Kelli Burke has joined the association as vice president of Commercial Real Estate Finance (CREF). Waterstone Mortgage Corporation has announced the opening of a new office

in Ellicott City, Md. The new office will be led by Branch Manager Andrew Wagner who has been with Waterstone since 2017, previously working as a loan originator at the company’s former Timonium, Md. branch. Waterstone Mortgage has also announced the opening of a new office in Salida, Colo., to be led by Loan Originator Michael Hall. Waterstone has also named Andy Peach as the company’s new president and chief executive officer. Bowery Valuation has announced that industry veteran Nicole UrquhartBradley, MAI is joining the firm as head of strategy and the head of Bowery’s new Washington, D.C. office. Gateway First Bank has announced the appointment of industry veteran Stephen Staid as its chief servicing officer, where he will direct a team overseeing customer care, investor accounting, loss mitigation, escrow administration and operations support. Insellerate has announced that Tami Von Tour has joined the company as director of enterprise sales, where she will be responsible for growing the company’s client base of mortgage companies and financial institutions, as well as leading efforts to increase awareness and market acceptance of the company’s state-of-the-art client engagement platform. Appraisal Logistic Solutions LLC (ALS) has named Mark Tague as vice president of sales. The company has also promoted Dennis Ashcroft to the role of executive vice president of sales.

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

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

ROBERT SENKO continued from page 49

year, so this was certainly not a rubber stamp process. Lastly, and most recently, we have struck a partnership with a large fund. Contractually and legally, I cannot mention the name in the media, but the combination of our experience and cheaper capital will make ACC a major player in the market in terms of product and pricing. But the simple fact a company of this size and caliber would even consider working directly with us makes me proud of everything I have built over the past 20 years. This partnership will allow us to compete with the biggest nonQM companies in the market.

How does your company respond to online reviews– both positive and negative–of your services? Robert Senko: Fortunately, we have not been the recipient of too many negative reviews. I send a letter to each loan officer that submits a loan to our company with my direct e-mail if they are having an issue. Sometimes their complaints are born out of unfamiliarity and expectations of non-QM. Sometimes our team makes a mistake and then it becomes a teaching moment for us to share. We celebrate positive

Lately, there have been jitters over the potential for a recession. Do you see a recession on the horizon? And how will today’s housing market respond to a recession? Robert Senko: I do not see a recession on the near-term horizon or any threats to the housing market. Let me extrapolate. In my adult life time, every recession was led by over leverage. Early 90’s overleverages of the Savings & Loans. The late 90’s was over leveraging of the stock market. In 2008, it was over the leveraging of real estate with 100 percent stated-income, which caused artificial price inflation and people bought homes they could not afford. Values are not going wild today. Proper regulation is not allowing the proliferation of stated income. I believe the inverted yield curve is in response to low rates in the global market. If a proper trade deal can be struck with China, you will see a global lift and

In your professional opinion, what can be done to bring more young people into mortgage careers? Robert Senko: Young people need to be excited to make money, be excited about capitalism. We have lost a generation or more of young people in the industry. When I go to various conferences, I still feel like the young guy and I just turned 50. Training programs are excellent, but expensive for companies. Looking back on your career, what do you see as your peak accomplishment? Robert Senko: Being interviewed by you. Seriously, the fact I could be interviewed for an esteemed publication like National Mortgage Professional Magazine that my peers read is a huge compliment. So today is my peak accomplishment. But tomorrow will be a new peak. Every day in this industry offers a new challenge and ability to learn something new. I just hope I have helped co-workers and customers alike and maybe made you laugh along the way. How do you spend your leisure hours? Robert Senko: Non-summer, my free time is spent taking my kids to youth sporting events, mostly hockey. I have four sons and I love watching them play and what sports can do for them. I believe team sports gives children a window into life. Practice, work with others, learn to deal with defeat and how to win. Communicate, listen to coaches, work with teammates toward a collective goal. Isn’t that life? In the summers, I enjoy time in Dewey Beach, Del., listening to live music with my wife, family and friends.

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

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You mentioned becoming a CDFI. Why did you opt to take on that designation? And what does this entail? Robert Senko: Before the nonQM secondary market started to heat up in 2015, I thought the only way to develop some non-traditional mortgage products would be with some governmental support. In theory, the government bond program, through the CDFI, could be used as financing tool to support non-QM products. The market began to fill this void and continues to help fill this need, so partnering with the Treasury is not necessary today, but it’s nice to know the option may exist. Maintaining this certification requires me to annually show that I am still servicing these underserved markets.

How do you view the overall state of today’s mortgage industry? And, where do you see the industry heading in the next 12 months? Robert Senko: Going back to the mid-90’s, I felt like the like the mortgage industry had a proper balance of products to support a growing economy. The market feels very similar with the growth of non-QM. Non-QM should not be the tail wagging the dog, but it should be an integral part of every loan officer’s product offerings.

rally in the stock market. If nothing gets done, a recession could loom for 2021. Eventually, a recession will occur and everyone needs to be prepared for it

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What makes ACC Mortgage stand out from the competition? Robert Senko: Since 1999, we have never stopped non-QM lending. We have been able to offer products that not only helped consumers, but have performed. Our products are currently on the cutting-edge of the non-QM market. I went to the University of Maryland when it was easy to get into. So, I try to keep things as simple as possible when I teach people about ACC and what separates us from the world. I teach people that they can determine if a deal makes sense in about 30 seconds if they listen. Good lending can be explained in our simple threepoint lending philosophy that remains as relevant today as it did in 1999 when I began teaching loan officers and account executives: First, the Ability to Repay: Yes, I know Dodd-Frank put this in a few years ago, but this is not a new concept. Why would I give someone a loan who I didn’t think they can afford? I need to sleep at night. So, let’s prove their income and there is more than one way to skin a cat when it comes to proving income. Second, you must have skin in the game. Everyone needs to be vested: Borrower and lender. Risk versus reward. Somehow this concept got lost along the way. If a borrower is willing to put their hard earn dollars down, then that is a good indicator of their “Willingness to repay.” They

stand to lose money. Third, the benefit to the borrower. This is the driving force of everything we do. If you make a loan for the borrower that you cannot articulate, why this is good for them and why do it? We ask the next question to make sure we are doing right by the customer. If a loan doesn’t perform, we stand to lose money. Our job isn’t to make loans that just close, but they need to perform for our investors and partners. Unfortunately, not everyone understands or cares about loans performing. They just want them to close. Real estate agents and loan officers work for a one-time commission, so it is understandable that interest are not always inline. If we do what is right by all parties, everyone wins.

reviews and also use them as teaching moments to see what good customer service and communication can do for a company. Sometimes you actually can develop a better relationship after a negative review because that person is simply wanting to be heard and if you can articulate what needs to be done for the next deal, they are very appreciated.

SAVE THE DATE!

NCRA 27th Annual Conference Tuesday-Thursday, November 5-7 The DeSoto Hotel 15 East Liberty • Savannah, Ga.

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Preliminary Schedule of Events Subject to change

Monday. November 4 NCRA Board of Directors Meeting (all day)

Tuesday, November 5 8:00 a.m.-4:00 p.m. User and Sales Meetings 6:00 p.m.-7:30 p.m. Welcome Reception and Marketplace

Wednesday, November 6 8:00 a.m. Breakfast 9:00 a.m.-5:00 p.m. Conference Open 6:00 p.m.-9:30 p.m. Feature Event

Thursday, November 7 8:00 a.m. Committee Sign-Up & Breakfast 9:00 a.m.-4:00 p.m. General Sessions For more information and details, visit NCRAInc.org, call (630) 539-1525, or e-mail NCRA Executive Director Terry Clemans at TClemans@NCRAInc.org or NCRA Office & Members Services Manager Jan Gerber at JGerber@NCRAInc.org.

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syncing between SimpleNexus and non-integrated third-party systems, including customer relationship management (CRM) platforms and loan origination systems (LOSs). Lenders can leverage the API to instantly relay loan application data collected by the SimpleNexus digital mortgage app to a CRM for use in automated marketing campaigns. The API may also be used to automatically update SimpleNexus with organizational changes made in the lender’s LOS or other system of record as well as syncing loan activity data for LOSs not currently integrated with the SimpleNexus digital mortgage platform. Additionally, SimpleNexus customers may now leverage webhooks to trigger data sharing whenever a specific event occurs within the SimpleNexus platform. Trigger events include the creation, update or deletion of a user. “Staying hyper-connected with borrowers and partners is critical to boosting closed loan rates and reducing closing times,” said SimpleNexus Founder and CEO Matt Hansen. “Our newly introduced open API and webhooks give lenders the freedom to optimize connectivity with any number of preferred third-party systems. That data connectivity is exactly what lenders need to expedite origination times and deliver a superior borrower experience.” Sagent to Leverage Microsoft Azure’s AI to Transform the Lending Experience

Sagent Lending Technologies has announced a strategic initiative to transform the borrower and the lender experience through Microsoft Azure. Sagent will leverage the potential of artificial intelligence, machine learning, data science, and cognitive services available on Azure that will provide a reimagined experience for Sagent clients and their consumer borrowers. Building on its strong

foundation of SaaS technology and business process outsourcing capabilities, Sagent Lending Technologies, a joint venture between Warburg Pincus and Fiserv Inc., is partnering with Microsoft to transform the experience of auto, mortgage and consumer borrowers. To accomplish this, Sagent is working in an industry-changing way to deploy, operate, and secure software and services for the future of lending. This integration will use Azure to drive new levels of operating scale, end-to-end digital agility, and enhanced speed-to-market for Sagent clients that comprises a wide ecosystem of auto, mortgage and consumer lenders. It will also bring advanced data management and customer analytics that will be supplemented by Azure AI and Machine Learning tools to create an unequaled experience for borrowers and lenders. “Having a vision for the future and realizing that through a thoughtful innovation plan supported by a strategic technology partner is what will uniquely allow our Sagent clients to win in the ever-evolving lending marketplace. Sagent is the technology partner for lenders who are willing to be a few steps ahead of the rest of the industry in realizing the future,” said Shaimaa Elk, EVP, CIO at Sagent Lending Technologies. “As a Microsoft Partner, Sagent’s utilization of the full breadth of the Azure cloud is central to realizing a vision for the future of lending and will benefit all of our clients by creating real innovation today and tomorrow.” Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

calendar of events OCTOBER 2019 Wednesday, October 23 NAMMBA Connect Houston The Westin Houston, Memorial City 945 Gessner Road Houston, Texas For more information, visit NAMMBA.org.

Wednesday, November 6 NAMMBA Connect Los Angeles The Westin Bonaventure Hotel and Suites 404 South Figueroa Street Los Angeles For more information, visit NAMMBA.org.

Thursday, October 24 AZAMP Annual Expo 2019 JW Marriott Phoenix Desert Ridge Resort & Spa 5350 East Marriott Drive Phoenix, Ariz. For more information, visit AzAMP.org.

Wednesday-Thursday, November 6-7 MBA Commercial/Multifamily Technology Officer Roundtable MBA Headquarters 1919 M Street NW, 5th Floor Washington, D.C. For more information, visit MBA.org.

NOVEMBER 2019 Tuesday-Thursday, November 5-7 NCRA 27th Annual Conference The DeSoto Hotel 15 East Liberty Savannah, Ga. For more information, visit NCRAInc.org.

Thursday, November 14 FAMP’s 2019 Miami Mortgage Convention Trade Show DoubleTree by Hilton Hotel Miami Airport & Convention Center 711 NW 72nd Avenue Miami For more information, visit MiamiFAMP.org. Monday-Wednesday, November 18-20 2019 NRMLA Annual Meeting & Expo Nashville Omni 250 5th Avenue South Nashville, Tenn. For more information, visit NRMLAOnline.org/event/2019annual-meeting-expo.

FEBRUARY 2020 Monday-Thursday, February 3-6 MBA’s 2020 Independent Mortgage Bankers Conference Hyatt Regency New Orleans 601 Loyola Avenue New Orleans For more information, visit MBA.org.

APRIL 2020 Monday-Tuesday, April 20-21 MBA’s 2020 State & Local Workshop Renaissance Washington, D.C.-Downtown Hotel 999 19th Street, NW Washington, D.C. For more information, visit MBA.org.

Sunday-Wednesday, February 9-12 MBA’s 2020 CREF/Multifamily Housing Convention & Expo Manchester Grand Hyatt San Diego 1 Market Place San Diego For more information, visit MBA.org. Sunday-Wednesday, February 23-26 MBA’s 2020 National Mortgage Servicing Conference & Expo Hyatt Regency Orlando 9801 International Drive Orlando, Fla. For more information, visit MBA.org. MARCH 2020 Sunday-Wednesday, March 8-11 MBA’s 2020 Mid-Winter Housing Finance Conference Ritz-Carlton, Bachelor Gulch 0130 Daybreak Ridge Avon, Colo. For more information, visit MBA.org.

Tuesday-Wednesday, April 21-22 MBA’s 2020 National Advocacy Conference Renaissance Washington, D.C.Downtown Hotel 999 19th Street, NW Washington, D.C. For more information, visit MBA.org. Thursday, April 23 MBA’s 2020 Capital Markets Summit Sheraton New York Times Square Hotel 811 7th Avenue, West 53rd Street New York, N.Y. For more information, visit MBA.org. OCTOBER 2020 Saturday-Monday, October 3-5 2020 NAMB National Caesars Palace 3570 South Las Vegas Boulevard Las Vegas For more information, visit NAMB.org.

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

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Sunday-Wednesday, October 27-30 MBA’s 2019 Annual Convention & Expo Austin Convention Center 500 East Cesar Chavez Street Austin, Texas For more information, visit MBA.org.

Monday, November 11 NAMMBA Connect Orlando DoubleTree by Hilton Orlando at SeaWorld 10100 International Drive Orlando, Fla. For more information, visit NAMMBA.org.

Sunday-Wednesday, March 29-April 1 MBA’s 2020 Technology Solutions Conference & Expo JW Marriott Los Angeles L.A. LIVE 900 West Olympic Boulevard Los Angeles For more information, visit MBA.org.

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Saturday, October 26 mPowering You: MBA’s Summit For Women in Real Estate Finance Austin Convention Center 500 East Cesar Chavez Street Austin, Texas For more information, visit MBA.org.

Tuesday-Thursday, November 19-21 MBA’s Accounting and Financial Management Conference 2019 Marriott Marquis San Diego Marina 333 West Harbor Drive San Diego For more information, visit MBA.org.

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Visit www.AngelOakMS.com or call 855.631.9943 Simply The Best Solution in Non-QM Wholesale and Correspondent Lending g. ÂŠ Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be off ffeered by or in conjunction with HUD, FHA, VA, the U.S. government or any ffeederal, state or local governmental body. This is a business-to-business communication and is intended ffo or licensed mortgage proffeessionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently ffo or approval an nd not all applicants will qualify fy ffo or 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. MS675_0419