National Mortgage Professional Magazine September 2016 by ambizmedia

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table of

N A T I O N A L

The Mortgage Godfather: It’s a Blizzard!!! By Ralph LoVuolo Sr.

S E P T E M B E R

44 What Olympians Can Teach Mortgage Pros About Reaching Their Goals By Bubba Mills

M O R T G

2 0 1 6

V O

A SPECIAL FOCUS ON “WHOLESALE & CORRESPONDENT UPDATE”

How to Win More Business as an AE By Ron Vaimberg ......................70 Resources to be a Better Loan Officer or Mortgage Broker By Charlie Fitzgerald, MBA........................................................................74 Prepare for Unconventional Conventional Lending By Rey Maninang ......................................................................................76 Two Key Solutions Will Create a New Market Opportunity for Wholesale Lenders By Jorge Sauri..........................................................78 New Partnerships Post Dodd-Frank—Third-Party Mortgage Origination By Nicholas DelTorto ............................................................80 Carpe Diem: How Digital Origination Strategies Can Support the Broker-to-Banker Transition By Jeff Bode ......................................82

Oh No! I Just Stepped in Some TRID By Eric Weinstein ......................84

The Millennial Mindset By Amanda Lucido

The Elite Performer: Perception vs. Perspective By Andy W. Harris, CRMS ..........................................................................8

FEATURES ARMCP Begins Rounding Out Steering Committee ..............................6 The Recent Uptick in Non-Prime Securitizations By Tom Hutchens ....8

Recruiting, Training and Mentoring Corner: The Wholesale Opportunity By Dave Hershman ..............................................................10 The Commercial Corner: Five Tips to Expedite Closing By Michael Boggiano ................................................................................16

68 Featured Industry Leader: Bill Bower, President, National Consumer Reporting Association (NCRA) By Phil Hall

Using the Right Technology to Effectively Manage Appraiser Vendors Yields Key Benefits By Vladimir Bien-Aime ............................18

V I S I T Company

Web Site

O U R

A D Page

Agility Resources Group ...................................... www.agilityresourcesgroup.com ......................................96 American Advisors Group.................................... www.aagwholesale.com ................................................37 Angel Oak Mortgage Solutions ............................ www.angeloakms.com ......................................Back Cover Assurance Financial............................................ www.lendtheway.com ....................................................91 Bayview Loan Servicing/Silver Hill Funding .......... www.silverhillfunding.com ............................................47 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ................................104 Caliber Home Loans.............................................. www.caliberhomeloans.com ............................................19 CallFurst.com ...................................................... www.callfurst.com ............................................................80 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................15 & 76

Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................73

Leading in the AMC Space: Class Appraisal By Rick Grant

Franklin American Mortgage Company ................ www.franklinamerican.com ............................................49

Freddie Mac ...................................................... www.freddiemac.com/loanadvisorsuite ............................5

Comergence Compliance Monitoring LLC .............. www.comergencecompliance.com ..................................71 Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................9 Fannie Mae ...................................................... www.fanniemae.com/solutions ......................................11 First Guaranty Mortgage Corp. ............................ www.fgmccorrespondent.com ..........Inside Front Cover & 72 Flagstar Bank .................................................... www.flagstar.com/ae ......................................................7

Freedom Mortgage Corporation .......................... www.freedomwholesale.com ..........................................13

of contents

R T G A G E

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

V O L U M E

N U M B E R

NAMB Perspective: September 2016 ....................................................20

Military Lending Act Regulations Effective in October By Gavin T. Ales ........................................................................................36

Lykken on Leadership: How to Build an Unstoppable Leadership Team By David Lykken ........................................................46 New Fusion Marketing Approaches ......................................................48 Appraisals, AVMs, BPOs: Which Should Mortgage Professionals Choose? By Scott Robinson, MAI, SRA, AI-GRS ....................................54 If an Insured Closing Letter Is Not Insurance, What Is It? By Andrew Liput ........................................................................................58 OrigiNation: YOU Are the Bus Driver By Andy W. Harris, CRMS..........60 Compliance Education for Today’s Mortgage Professional By Greg Stephens, SRA, MNAA, CDEI......................................................62 The Long & Short: The Business of Short Sales By Pam Marron ........64 The NAPMW Report By Kelly Hendricks ................................................90 nmpU Campus Talk By Ron Vaimberg ....................................................92 MBA’s Mortgage Action Alliance ..........................................................94 AARMR Honors Levy ..............................................................................99

COLUMNS New to Market..........................................................................................12 News Flash: September 2016 ................................................................14 Heard on the Street ................................................................................42 Outstanding Places to Work ................................................................100 NMP Calendar of Events ......................................................................101 NMP Resource Registry ........................................................................102

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

Web Site

Page

HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................59 Lykken On Lending ............................................ www.lykkenonlending.com ............................................96 MBS Highway .................................................... www.mbshighway.com/MNN ..........................................61 Moneyhouse U.S. .............................................. www.mhodportal.com ....................................................75 Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................40 & 41 NAMB+ ............................................................ www.nambplus.com ......................................................25 NAPMW ............................................................ www.napmw.org ....................................................39 & 70 NAWRB ............................................................ www.nawrb.com ............................................................97 NMP U .............................................................. www.nmpucoaching.com ........................................1 & 33 NRMLA.............................................................. www.nrmlaonline.org ....................................................84 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................52, 53 & Inside Back Cover Radian .............................................................. www.radian.biz ............................................................74 REMN Wholesale ................................................ www.remnwholesale.com ..............................................17 Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................78 Secure Insight.................................................... www.secureinsight.com ..................................................43 TagQuest .......................................................... www.tagquest.com ........................................................65 The Bond Exchange............................................ www.thebondexchange.com ..........................................82 United Wholesale Mortgage ................................ www.uwm.com ....................................77, 79, 81, 83 & 85

SEPTEMBER 2016 Volume 8 • Number 9

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

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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@nmpmediacorp.com. The deadline for submissions is the first of the month prior to the target issue.

SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@nmpmediacorp.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 NMP Media Corp., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA, and other state mortgage trade associations. National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in NMP Media Corp. publications. National Mortgage Professional Magazine and NMP Media Corp. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.

FROM THE

publisher’s desk

s any regular reader of this publications knows, we have a special devotion to the front line loan originator. Brokers and loan officers are the main drive for our industry. While it may be less apparent today than it was in the days before the crash, there are plenty of signs that our industry is recovering and these sales professionals are once again taking their places at the front of the industry. But as much as we love to bring you content that makes mortgage salespeople better at what they do, we cannot forget that these professionals cannot do it alone. They depend on wholesale and correspondent lenders for the products that serve their borrowers and keep their businesses strong. So in this issue, we focus some attention on our wholesale and correspondent lending partners. These markets are the lifeline of the industry and your ability to work with these partners effectively will have a significant impact on your success. Count on the articles in this issue to help you with that. The timing is perfect because later this month, mortgage professionals who are part of NAMB—The Association of Mortgage Professionals will be coming together at the Luxor in Las Vegas for NAMB National 2016. We will be there and hope to see you all there as well. Just prior to NAMB National, NAMB’s leadership will sit down again with the nation’s leading wholesale lenders to do the hard work of plotting a course into the future that will lead to business growth for all parties. We’re very proud of the material we bring you from the national trade associations we have partnered with in the pages of this publication, on our Web site, NationalMortgageProfessional.com; and on our sister Web site, MortgageNewsNetwork.com, where you’ll find a great new bi-weekly videos from NAMB and the Mortgage Bankers Association (MBA). As always, our editorial team has reached out to the industry for great feature articles that shed valuable light on this month’s topic, the wholesale and correspondent markets. Here are some examples taken from the pages of this issue: Jeff Bode, owner and CEO of Mid-America Mortgage Inc., writes about the shift to digital mortgage origination in his article, “Carpe Diem: How Digital Origination Strategies Can Support the Broker-to-Banker Transition.” With more wholesale lenders and the government pushing for loan data without the paper, this article could not be more timely. Embracing paperless is one way to be a more attractive loan source to your wholesale lender, but there are others. In his article, “Resources to be a Better Loan Officer or Mortgage Broker,” Charlie Fitzgerald, MBA, a branch manager and senior account executive for Civic Financial Services LLC, gives you plenty of ideas. Those two articles are great examples of how the business is changing, even as it returns to more historic norms. But one thing is for certain, there have been plenty of changes for everyone in the post-crash era of the mortgage industry. In an excellent article we bring you in this issue, Nicholas DelTorto, president and CEO of Inlanta Mortgage Inc., tells us about “New Partnerships Post Dodd-Frank—Third-Party Mortgage Origination.” This article doesn’t just bring value to our front line originators, but also exposes some opportunities for the wholesale lenders that work with these brokers. According to industry veteran Jorge Sauri, an entrepreneur who is CEO and founder of LendSmart, “Two Key Solutions Will Create a New Market Opportunity for Wholesale Lenders.” In the wholesale lender’s shop, no one has more control over their own opportunity than the account executive. In his article, “How to Win More Business as an AE,” nmpU Executive Director and Head Coach Ron Vaimberg gives you the power to be one of the industry’s leading AEs. And that’s just a taste of what’s available to those who take advantage of the excellent training opportunities offered by nmpU. Of course, there are risks that we must mitigate if we hope to achieve everything that is possible. We cover those in this issue as well, with a great article on TRID compliance from Eric Weinstein (“Oh No! I Just Stepped in Some TRID”), and a look at what’s coming next in terms of loan products with “Prepare for Unconventional Conventional Lending,” by Rey Maninang, senior vice president and national sales director of Carrington Mortgage Services LLC’s Wholesale Mortgage Lending Division. As always, I hope you enjoy this issue and that it contributes to your continued success. If in Las Vegas for NAMB National, stop by our booth and say hello and enjoy your stay. Sincerely,

Joel M. Berman, Publisher-CEO NMP Media Corp. Joel@NMPMediaCorp.com

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A Brighter Idea in Loan Production

NAMB—The Association of Mortgage Professionals 2701 West 15th Street, Suite 536 l Plano, Texas 75075 l Phone: (972) 758-1151 l Fax: (530) 484-2906 l Web site: www.namb.org

NAMB 2015-2016 BOARD OF DIRECTORS O F F I C E R S

Rocke Andrews, CMC, CRMS President Lending Arizona LLC 3531 North Pantano Road Tucson, AZ 85750 (520) 886-7283 randrews@lendingarizona.net

Fred Kreger, CMC President-Elect American Family Funding 28368 Constellation Road, Suite 398 Santa Clarita, CA 91350 (661) 505-4311 fred.kreger@affloans.com

John Stevens, CRMS Vice President Mountain West Financial 380 North 600 East Pleasant Grove, UT 84062 (801) 427-7111 johngstevens@gmail.com

Rick Bettencourt, CRMS Secretary Mortgage Network 300 Rosewood Drive Danvers, MA 01923 (978) 777-7500 rbettencourt@mortgagenetwork.com

Andy W. Harris, CRMS Treasurer Vantage Mortgage Group Inc. 16325 Boones Ferry Road, #100 Lake Oswego, OR 97035 (503) 496-0431, ext. 302 aharris@vantagemortgagegroup.com

John Councilman, CMC, CRMS Immediate Past President AMC Mortgage Corporation 10136 Avalon Lake Circle Fort Myers, FL 33913 (239) 267-2400 jlc@amcmortgage.com

Donald J. Frommeyer, CRMS NAMB CEO American Midwest Bank 200 Medical Drive, Suite C-2A Carmel, IN 46032 (317) 575-4355 donald.frommeyer@gmail.com

D I R E C T O R S

Kimber White RE Financial Services Inc. 1620 West Oakland Park Blvd. #201 Oakland Park, FL 33311 (954) 306-3553 kimber.lmt@gmail.com

Olga Kucerak, CRMS Crown Lending 328 West Mistletoe San Antonio, TX 78212 (210) 828-3384 olga@crownlending.com

Valerie Saunders RE Financial Services 13033 West Lindburgh Avenue Tampa, FL 33626 (866) 992-0785 valsaun@gmail.com

David Luna, CRMS Mortgage Educators and Compliance 947 South 500 E, Suite 105 American Fork, UT 84003 (877) 403-1428 david@mortgageeducators.com

Robert Sweeney, CRMS 600 East Carmel Drive Carmel, IN 46032 (317) 625-3287 bob.sweeney46@yahoo.com

Linda McCoy, CRMS Mortgage Team 1 Inc. 6336 Piccadilly Square Drive Mobile, AL 36609 (251) 650-0805 linda@mortgageteam1.com

Michele Velez, CMC 1300 South El Camino Real, Suite 505 San Mateo, CA 94402 (650) 409-2850 shellvelez@gmail.com

Nathan Pierce, CRMS Advanced Funding Home Mortgage Loans 6589 South 1300 East, Suite 200 Salt Lake City, UT 84121 (801) 272-0600 npierce@advfund.com

Mike Anderson, CRMS Mortgage Financial Services 11940 Bricksome Ave., Suite B Baton Rouge, LA 70816 (504) 451-3339 manderson@mfsus.com

National Association of Professional Mortgage Women 345 North Main Street, Suite 313 l West Hartford, CT 06117 l Phone: (800) 827-3034 l E-mail: napmw1napmw.org l Web site: napmw.org

2016-2017 NAPMW NATIONAL BOARD OF DIRECTORS

SEPTEMBER 2016 n National Mortgage Professional Magazine n

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Kelly Hendricks National President (314) 398-6840 President@NAPMW.org

Cathy Kantrowitz President-Elect (845) 463-3011 PresElect@NAPMW.org

Susan Kerr Vice President (703) 871-1310 NVP1@NAPMW.org

Laurel Knight Vice President (425) 287-5351 NVP2@NAPMW.org

Glenda Mooney Secretary (281) 556-9182 NatSecretary@NAPMW.org

Judy Alderson Treasurer (918) 250-9080, ext. 300 NatTreasurer@NAPMW.org

Frances Reinhardt Parliamentarian (678) 331-1384 FReinhardt@FirstServiceTitle.net

Vincent Valvo Executive Director (860) 922-3441 NAPMW1@NAPMW.org

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

2015-2016 BOARD OF DIRECTORS

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

Julie Wink Vice President/Treasurer (901) 259-5105 Julie@DataFacts.com

Mike Brown Ex-Officio (908) 813-8555, ext. 3020 MBrown@CISinfo.net

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

Matthew Carpenter Director MCarpenter@Sarma.com

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

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

Dean Wangsgard Director (801) 487-8781 Dean@nacmint.com

Delia Zuniga Director Delia@AdvantagePlusCredit.com

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

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

Scott Ledbetter Director (214) 783-3315

ARMCP Begins Rounding Out Steering Committee he Association of Residential Mortgage Compliance Professionals (ARMCP), a not-for-profit, professional organization devoted to residential mortgage compliance professionals, has added another member to its seven-member Steering Committee. ARMCP is in need of two additional residential mortgage compliance and/or regulatory compliance professionals to join President and Founder Jonathan Foxx on the Steering Committee. “This is a leadership position,” said Foxx. “We ask that you be a member who is actually involved in residential mortgage compliance or provide regulatory compliance guidance to such persons.” The purpose of ARMCP’s Steering Committee is to: Draft and review the association’s by-laws; determine a nominating process for officers; discuss the association’s first conference; decide on subcommittees and the process for appointing committee chairs; set forth a Mission Statement; and other business relating to the association’s mission. Interested parties may contact ARMCP at Info@ARMCP.org.

SINC CE 1987

• FANNIE, FRREDDIE, FHA, VA, JUMBBO • DIREC T CON NTAC T WITH A LOCAL AE • STABILIT A Y OFF AN FDIC-INSURED BANK B • TAIL A ORED FLEXIBILIT FLEXIBILIT Y—YOU DEC CIDE HOW WE WORK TOGE THER

To find an account executive near you visit flagstar.c . om/ae

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Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change. The infor o mation provided d herein is for o dissemination to and for real esstate and financial business eentities only, and is not an advertisement for o the extension of credit to customers.

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The Recent Uptick in Non-Prime Securitizations By Tom Hutchens

SEPTEMBER 2016 n National Mortgage Professional Magazine n

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on-prime mortgage products have been slowly creeping into the market for the last four years, but total volume still pales in comparison to traditional agency mortgages. One of the headwinds for non-prime mortgages has been wave after wave of refinancing. Loan originators have little incentive to adapt new products when they can simply rely on refi volume. We’ve hypothesized in past commentaries that the refi spigot would soon shut off, but we are continuously surprised by lower rates. Still, we’d be shocked if we saw negative rates on mortgages at any point in the future. On the other hand, non-prime has experienced a tailwind from robust investor demand, which is beneficial to lenders that need to free up capital or remove risk from their books. This is done through the residential mortgage-backed security (RMBS) vehicle. Investor demand for non-prime RMBS is growing faster than the securitizing agents can create the bonds. This upstream demand is critical as it lets purchasers of loans know that the market is there for them to increase securitization volume. Eventually, the pace of non-prime securitizations will catch up with both demand from investors and the supply of loans on the market. The question is will lenders be able to keep up with demand once we reach that point? Our view is that, by the time securitizations catch up, the majority of refinancing volume will be behind us and lenders will have no choice but to expand their portfolio to include non-prime products. The non-prime mortgage market has seen steady growth even with the aforementioned obstacles. Angel Oak Mortgage Solutions has originated about 2,500 loans since inception. About half of our loans have been securitized, with the latest batch bundled in the Angel Oak Mortgage Trust 2016-1 in mid-August. Now that the link between investors and borrowers has been completed and proven to be successful, volume should start to really pick up. The aforementioned securitization is the seventh non-prime deal in the last year. Furthermore, as these deals start to get rated, investor acceptance and accessibility will expand even further. Rated transactions reduce the cost of capital because people are willing to take a lower rate of return given the lower risk factor.

Tom Hutchens is senior vice president of sales and marketing at Angel Oak Mortgage Solutions, an Atlanta-based wholesale lender currently licensed in 32 states. Tom has been in the real estate lending business for nearly 20 years. He may be reached by phone at (855) 539-4910 or email Info@AngelOakMS.com.

SPONSORED EDITORIAL

the

elite performer Perception vs. Perspective BY ANDY W. HARRIS, CRMS

et’s face it, we’re in a crazy business. I mean a business that can drive a person crazy if we don’t analyze things and prepare for the emotions and roller coasters that is real estate. Our clients are facing one of the biggest financial decisions of their life and working with others in the industry can feel like having a conversation with a toddler throwing a temper tantrum. We carry the most important role in the mortgage origination, controlling the process of a non-cash purchase. We need to be level-footed and well-grounded. Simply put, we need to be the leaders in every transaction. Perception is defined as a way of regarding, understanding, or interpreting something; a mental impression. Perspective is defined as a particular attitude toward or way of regarding something; a point of view. While these two definitions may sounds similar, they are quite different. Perception is more personal and individualized on how things may appear, while perspective is more of a reality of how things are. I believe these two words are some of the most important to understand for anyone working in this high stress industry. When we have difficult situations, we need to be able to control our attitudes and responses to each in a manner best suited for the clients we serve. When challenges arise, most people perceive things worse than they really are. When you step outside and find the solution, it’s easy to realize the problem is truly not a problem in the grand scheme of things. You can put things into perspective for all parties with data and facts and everything will be okay. You must control your attitude and how you respond during the most challenging times to help comfort those around you and find solutions versus fueling the already potentially twisted perception of reality. This is very important when managing the process, expectations, and changes we face as an industry. I personally deal with this often with the high demands at work. I recall travelling to Belize last year with my beautiful bride for our 10-year anniversary. I can tell you, it was the best thing for perspective anyone can experience. I completely disconnected (for the first time in a long time) and saw things in an entirely different view and perspective. Everything was small, no issue was an issue, and it was “all good.” Everyone needs to experience this at least once a year. Sure enough, when I returned it was like I never left. We need to manager ourselves and others in finding the right action and reactions to take. We need to build and sustain a healthy viewpoint in work and life that will help us thrive and enjoy our work. There is nothing wrong with individualism and perception, but if it is skewed or set from false expectations or understanding of how the process works in our business, we need to step in and help all parties put into perspective for the way things are. It’s not only when there are potential issues, but just to prepare people for the crazy process they will face when applying for a mortgage loan that could be a fun process if we help them prepare mentally.

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.

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n National Mortgage Professional Magazine n SEPTEMBER 2016

www.DocMagic.com

1.800.649.1362

Recruiting, Training and Mentoring Corner

The Wholesale Opportunity BY DAVE HERSHMAN

ometime in the not-so-distant future, in a galaxy far, far away, there will come an end to the refinance boom. In this strange world, loan officers will not leave the industry to find greener pastures at the end of the boom. They will be retiring because the average age of experienced loan officers in the industry will have reached close to 60 years of age. In this world, wholesalers who faced a financial crisis in the distant past some years ago, will again find themselves facing another type of crisis. The past financial crisis not only was beset by a drop in available business. It was also subject to a severe contraction of the mortgage brokerage industry–the prime target of the “brokerwholesale” sector. This new crisis will be different. There will be industry consolidations, but the overall shift will not necessarily be towards larger institutions. Instead, the shift will be towards a younger Millennial generation of loan officers.

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Within every crisis, there is an opportunity With a new generation of loan officers coming on board in the not so distant future, there will be a need for learning. Despite this need, the structure of the management of this industry will not change. Sales managers will generally be top producers who will have little time or skills to provide the educational foundation for new loan officers.

Even if they had the time, they will not be trained to teach—or to mentor, for that matter. The wholesale company(s) that recognizes this need will be in a position to: l Deliver value which is already a pressing need of their clients. In this regard, the not so distant future has already begun to arrive. l Develop relationships and loyalty with a completely new generation of clients. How can a wholesale company do this? First of all, they must recognize that training focuses only on their products is not the value their clients need and will not differentiate these companies from the competition. Training on wholesale products is necessary and what is expected of them, but it does not represent added value. The next question which follows is: What represents added training value? In this case, the world is the industry’s oyster, as there are few levels of training which are not needed. In addition to product training, here is a partial list of needed topics: l Sales and marketing: Both for in-house loan officers and street loan officers. l Application and customer service training: Of course, this training will increase the quality of the wholesaler’s business as well. l Understanding mortgage types and comparing mortgage

“With a new generation of loan officers coming on board in the not so distant future, there will be a need for learning. Despite this need, the structure of the management of this industry will not change.”

l l

products so that loan officers can become expert mortgage advisors and better serve their clients. Qualification of borrowers, including the self-employed and additional scenarios. Understanding rates and the secondary markets, including the complexity of rate sheet. Training specific to refinances and purchases. The economics and social aspects of home ownership, including tax benefits.

Loan officers get plenty of ethics and compliance training through licensing. But beyond that, licensing preparation does not show a loan officer how to succeed or even how to do a good job. This is a travesty in an industry which deals with such an important transaction. Purchasing a home is typically the most important financial and social decision a family makes Again, their supervisor is not in

position to deliver the training. Larger mortgage companies may have the resources to develop a complete university. But not the smaller companies that most broker wholesale companies service. For those companies, even developing one or two value-added topics will be a great value to their clients. If every wholesale company did their part—we would have a more professional industry. For the broker wholesale company who wants to lead the way in this regard without dedicating a ton of resources towards this endeavor, we will reserve the answer to this question for a future column. Imagine being the leader in educating your clients and the loyalty which will follow. For those wholesalers who want the answer before we publish the follow-up to this article sometime in the future, feel free to contact me at Dave@HershmanGroup.com.

Dave Hershman is a top author in this industry with seven books published, as well as the founder of the OriginationPro Marketing System and the OriginationPro’s online comprehensive mortgage school. Dave is also director of Branch Support for McLean Mortgage. He may be reached by e-mail at Dave@HershmanGroup.com or visit OriginationPro.com.

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newtomarket Indecomm Integrates eRecording PlatformWith ResWare

SEPTEMBER 2016 n National Mortgage Professional Magazine n

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Indecomm Global Services has announced that its InteleDoc Direct (IDD) eRecording Platform with Recopedia has been integrated with the ResWare title production platform. This collaboration brings Indecomm’s latest innovation in eRecording, Inteledoc Direct with the Recopedia toolkit, to ResWare’s title platform. Indecomm provides current county-specific requirements and fee calculations for all real estate document recordings. The inclusion of this technology into ResWare will boost the efficiency of title agents, enabling them to meet all their business processing and recording needs in a single platform. “Indecomm’s automated solutions enhance a variety of business process applications used by title agents,” said Rajan Nair, CEO, Financial Services Division, Indecomm Global Services. “IDD’s integration with ResWare is an outstanding example of enhancing the overall recording experience for title agents.” ResWare focuses on streamlining the title recording process, which is challenged by slow turn times, high employee turnover, and inconsistent results. ResWare provides enhanced automation and access to a single platform that manages all of the documents, vendors, and processes. It automatically alerts the appropriate individuals when they must complete a task. “Indecomm and ResWare have collaborated to allow their

customers to achieve the most that technology can supply to their bottom line,” Nair said. “It is a continuing commitment, which lies at the heart of our business goals.” InteleDoc Direct is part of a portfolio of Indecomm’s proprietary technology platforms, including iTitleHub, Kaizen Income Analyzer, and Publishing Portal, whose purpose is to decrease risk and enhance productivity. “Adeptive Software is delighted with the opportunity to work with Indecomm, a leading global technology company with deep expertise in document management,” said Bryan Buus, president of Adeptive Software Corporation. “Together with our ResWare platform, we are at the forefront of providing services to title agents.” LodeStar Software’s Loan Estimate Calculator Now Available Via Encompass

LodeStar Software Solutions, a provider of mortgage fee data, announced that its Loan Estimate Calculator is now available through Ellie Mae’s Encompass all-in-one mortgage management solution. The seamless integration allows lenders to access LodeStar’s products directly through Encompass to drive quality and efficiency in the loan origination process. Encompass users can instantly and securely generate a quote from LodeStar’s Loan Estimate calculator without duplicating any data entry. All quotes are guaranteed for accuracy and

instantly returned in the proper TRID format. Fee quotes include transfer taxes, municipal recording charges, title insurance premiums and settlement costs across all 50 states. Clients can set up their settlement service providers’ fees in the system or work with LodeStar’s national network of settlement agents. Ellie Mae is a provider of innovative on-demand software solutions and services for the residential mortgage industry. Ellie Mae’s Encompass all-inone mortgage management solution provides one system of record that enables banks, credit unions and mortgage lenders to originate and fund mortgages and improve compliance, loan quality and efficiency. “LodeStar is delighted to partner with Ellie Mae,” said Jim Paolino, CEO and founder of LodeStar. “Our secure, seamless integration enables our clients using Encompass to simplify the manual fee-quoting process for the Loan Estimate and Closing Disclosure forms, so they can process mortgage loans and grow their businesses faster.” ARMCO Updates Its TRIDCompare Tool

Web-based financial services quality control (QC) software provider ACES Risk Management (ARMCO) has announced it has made improvements to its TRIDCompare tool to aid lenders in resolving TRID compliance issues regarding change of

circumstance. Using Optical Character Recognition (OCR) technology with a 95 percent or better accuracy rate, the system automatically detects data discrepancies between multiple Loan Estimates (LEs) and Closing Disclosures (CDs), allowing lenders to pinpoint where change of circumstance has occurred to ensure the borrower was properly notified in accordance with the TRID requirements. “We know the industry continues to struggle with TRID. Post-closing QC results from the ACES Analytics benchmarking system show defects in the Legal/Regulatory/Compliance category have nearly doubled since the implementation of TRID in Q4 2015,” said Phil McCall, COO for ARMCO. “Identifying changes of circumstance and errors for points and fees is a critical TRID QC activity and one that can add significant time to existing pre-funding and postclosing QC audits. Manual rekeying of data or ‘stare-andcompare’ tactics can take an hour or more per file to complete the complex comparisons required to properly QC these disclosures. With TRIDCompare 2.0, this process can be completed in as little as five minutes per file.” In this latest version of TRIDCompare, ARMCO added more than 200 data fields to the data extraction and validation for the CD, providing auditors with the ability to conduct a more thorough review with a systemdriven process. Other additions include building in tolerance levels for data fields to better identify data extraction errors and the use of color coding so that auditors can easily identify fields with errors and validate data within the document. Disclosures are automatically organized in chronological order by the “Document Issued” date to

provide an accurate representation of all changes. This system-driven process allows auditors to easily identify when changes of circumstance should have been provided and all fees associated with these changes. The user can then export TRIDCompare directly to Excel, which will provide a documented audit process that can be provided to senior management, investors, or regulators. â&#x20AC;&#x153;What makes this latest iteration of TRIDCompare so great is its ability to automate a critical, yet labor-intensive QC function that can be used in a variety of areas and applications,â&#x20AC;? said Avi Naider, CEO for ARMCO. â&#x20AC;&#x153;On the pre-funding side, auditors can use TRIDCompare to prevent TRID violations and verify the accuracy of the data being presented to the borrower at closing. For post-closing, auditors can easily incorporate this review into their standard percentage audit to verify TRID compliance through closing. Even correspondent investors could leverage TRIDCompare to conduct a pre-purchase TRID compliance checks. The possibilities truly are endless.â&#x20AC;?

with 203(k) financing, theyâ&#x20AC;&#x2122;re not only making a smart investment, but are also strengthening communities.â&#x20AC;? Hubzuâ&#x20AC;&#x2122;s new auction and financing features include: l Hubzu Pre-auction Listings: This new feature allows buyers to preview, monitor and research properties before auctions are live on Hubzu, making it easier to discover properties of interest and prepare for bidding. When auctions commence, buyers have transparency into how

many people are also watching the same auction. They can set automatic bidding amounts and caps to make quick adjustments to their bid when an email notification alerts them when they are outbid. l Federal Housing Administration 203(K) Financing: On qualifying properties, buyers can now make their bids contingent on rehab financing which allows them to finance the purchase and renovation with a single mortgage. This opens up substantial opportunity to qualified buyers interested in

purchasing a distressed property. Genworth Mortgage Insurance Expands Homebuyer Privileges Program

Genworth Mortgage Insurance, an operating segment of Genworth Financial, has announced an expansion of its continued on page 18

Choose e Freedom m to Grow

Auction Site Hubzu Now Offering New Features

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POWER W UP YOU O R FHA BUSIN NESS â&#x20AC;&#x201D; *)('&('%&$#&"'! !& % % To Top 10 Mortgage Originatorr Na ationwide$ #$"! " " " " $ " " " " " " "

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,+**)('& %(+$#"#*& !(+ (+"$ ( & & "& '(+$#"#*& * )*+& * *)& & " & & $"$* & % & & & !(+ (+"$*& ( *& ( "$*)& "$& & *" " $& " " * & * * & $*& or our co & %$& " +* & & & & & Please visit our website at www.freed dommortgage.com/state-licensing ffo omplete list off state licenses. This y by Freed b offfe ered by or in conjunction with communication is sent only dom Mortgage Corporation and is not intended to imply that any off our loan products will be VA, the U.S. government o ederal, state or local governmental bo or use by mo HUD, FHA, VA ody. This information is intended ffo ortgage brokers and other industry or any ffe fessionals. This is a business-to-bu formation about Freedom profe usiness communication and is not an advertise ement to orr solicitation off a consumer. For add ditional info Mortgage Corporation, please visit the NMLS Consumer Access page at: nmlsconssumeraccess.org. Equal Housing Lender. ÂŠ Freedom Mortgage Corporation. All rights reserved.

n National Mortgage Professional Magazine n SEPTEMBER 2016

Hubzu has launched new features to help traditional homebuyers purchase bank-owned homes as their next residence. Hubzu users can now see upcoming listings pre-auction. In addition, Hubzu users can now place bids on homes that are contingent on obtaining HUDâ&#x20AC;&#x2122;s 203(k) rehabilitation financing which allows a single mortgage to include the home purchase price and renovation costs. This could be especially helpful for the Hubzu users who want to purchase distressed homes as their primary residences. â&#x20AC;&#x153;Traditional homebuyers are a growing segment of Hubzu users and we are adding new features to help them plan which properties to bid on. By adding the 203(k) financing as a contingency option, Hubzu helps increase the housing stock of affordable homes by making it easier for traditional buyers to purchase bank-owned homes,â&#x20AC;? said Steve Udelson, president of Hubzu. â&#x20AC;&#x153;When traditional buyers purchase distressed properties

NEWSFLASH y SEPTEMBER 2016 y NMP NEWSFLASH y SEPTEMBER 2016 y NMP NEWSFLASH y SEPT

MBA’s Stevens: Next President Needs a Housing Policy Director

SEPTEMBER 2016 n National Mortgage Professional Magazine n

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The head of the mortgage industry’s largest trade association is calling on the next occupant of the White House to create a new position that will be responsible for shaping the Executive Branch’s housing policy. In an op-ed column published in The Hill, Mortgage Bankers Association (MBA) President and CEO David H. Stevens noted that the Obama Administration’s response to housing was mostly reactive due to the tumult created by the Great Recession. But with the housing market regaining its strength plus what Stevens dubbed “the safest mortgage lending environment in modern history,” the MBA chief pointed to growing housing policy problems that require a different approach from the presidency. “The delay in qualified Millennials from entering homeownership is causing an unusual rise in rental costs,” Stevens wrote. “The reasons include tight credit, an inability of consumers to save for a down payment, student loan debt, and a lack of affordable housing stock. And these rising rental costs are having an adverse effect, especially in urban communities. According to the Institute for Research on Poverty

and University of WisconsinMadison, over the last twenty years, the percentage of Americans dedicating at least half of their income to housing has risen from 42 percent to 52 percent. And almost a quarter, representing over a million families, dedicate over 70 percent of their income to pay rent and keep the lights on.” Stevens, who served as commissioner of the Federal Housing Administration during the first Obama Administration term, called for a proactive Executive Branch approach to housing policy. “Undoubtedly, the next administration needs to create incentives through marketing and public messaging, down payment assistance or savings reward programs, tax incentives, or credits for appropriate real estate development,” he continued. “Efforts to expand the development of affordable rental housing needs a firm Administration commitment via the expansion of the LowIncome Housing Tax Credit (LIHTC) and public/private partnerships to encourage the development of safe, sustainable, and affordable rental workforce housing.” Stevens also stated that lenders were “being discouraged from lending to first-time home buyers by unclear rules and overly aggressive and inappropriate

enforcement actions by the government agencies”—although he stopped short of openly identifying the regulatory agencies. In advocating for a White House-based director on housing policy, Stevens envisioned a strong leader to take on this new role. “This individual should report directly to the President and have clear principal level authority to call meetings, drive results, and measure progress,” he said. “He or she will play an indispensable role not just in identifying conflict points, but working with multiple agencies and compelling independent regulators to coordinate policy so as to encourage lenders to lend to qualified borrowers. To untangle and refocus a national effort on housing America’s families will require a President to make a certain and forceful pivot that leaves little doubt about this issue. That pivot cannot happen without a clearly articulated policy and someone empowered to use all the authority of the White House to make it happen.” Residential Vacancies Down Nine Percent YoY

There were approximately 1.4 million of vacant residential properties as of the end of the

third quarter, according to new data from ATTOM Data Solutions. This represents 1.6 percent of all residential properties in the U.S. While the quantity of vacant properties is in decline—the third quarter figures represented a three percent quarterly decline and a nine percent year-over-year drop— the number of bank-owned (REO) residential vacancies hit 46,604 as of the end of the third quarter, up seven percent from the previous quarter and up a staggering 67 percent from the third quarter of 2015. Florida had the highest number of REO vacancies among the states, with 5,880 properties, while Detroit had the highest number among major metro markets, with 2,386 properties. However, there was better news involving the so-called “zombie foreclosures” (vacant properties in the foreclosure process): The 18,304 residential properties in this state, which accounted for 4.7 percent of all residential properties in foreclosure, marked a five percent drop from the previous quarter and a nine percent drop from one year ago. New Jersey led the states with zombie foreclosures (3,698 properties) while New York City had highest number among major metro areas (3,590). “A strong seller’s market along with political pressure has likely motivated lenders to complete the foreclosure process over the past year on many vacant properties that were lingering in foreclosure limbo for years,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “While that has reduced the number of vacant properties in the foreclosure process … it has also resulted in

a corresponding rise in the number of vacant bank-owned homes. Assuming that the foreclosing lenders are maintaining these properties and paying the property taxes, they pose less of a threat to neighborhood quality than zombie foreclosures, but they still represent latent inventory in an inventory-starved housing market.” Zillow: Home Values Rise for 48th Straight Month

this month, according to Pro Teck, are Oak Harbor, Wash.; Mount Vernon-Anacortes, Wash.; VisaliaPorterville, Calif.; Durham-Chapel Hill, N.C.; Portland-South Portland, Maine; Silver Spring-FrederickRockville, Md.; Charleston-North Charleston, S.C.; Richmond, Va.; Stockton-Lodi, Calif.; and Sacramento-Roseville-ArdenArcade, Calif. At the other end of the spectrum, the bottom 10 markets on Pro Teck’s list are Huntsville, Ala.; Scranton–WilkesBarre–Hazleton, Pa.; Charleston, W.V.; Midland, Texas; Gary, Ind.; Atlantic City–Hammonton, N.J.; Jacksonville, N.C.; Flint, Mich.;

Muskegon, Mich.; and Saginaw, Mich. California Dominates New List of Most Expensive Housing

California housing is so expensive—pause for reader to ask, “How expensive it it?”—that the state occupies all 10 rankings continued on page 16

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© Copyr o y ight i 2007-2016 Carringt a oon Mortga gagge Services, LLC headquartereed at 1600 South Douglasss Roaad, Suites e 110 & 200A, Anaheim, CA 92806. 800 -561-4567. NM MLS ID 2600. Nationwide Mortgage g Licensing e Syst ys eem (NMLS) Coonsumer Access ce websit e ee: www.nmlsc . o onsume erac a cess.org. AZ: Mortggage Bankeer BK-0910745. CA: Licensed by the Department of Business Oversight under the Califor a o nia n Reesidential Mortgage Lending Act,, Fiile 413 0904. CO: Check h license status of yoour mortgage g loan origina i toor at www.dor . a.sta a te.co.us/reale estate/index.htm. e GA: Georgia g a Residential Mortggage Licensee 22721. IL: Illinois Residential e Mortggage Licensee. KS: Supervised Loan Liceense SL.0000313. KY:: Mortgage Loan Company o y Liceense MC211112. MN: This h is not an offer e too enteer into an interest e e rate lock aagreement e under Miinnesota Law. MS: Licensed by the Mississipppi Department of Banking i and Consumer o Financ i e. Mortgage g Lender License 2600. MO: Missouri Compan o y Registration 14 -1746-A. In-State Office: Missouri Residentiall Mortgage g Loan Brok o er e License e 14-1746-A1. 251 SW Noel, Lees e Summit, MO 64063. NV: Mortgage g Brok o er e License e 4068 (Residential Mortgage Lending). NH: Licensedd by the New Hampshire Bankiing Department. NJ:: Licensed by tthe N.J. Department of Banking i and Insuranc a e. NY: Liceensed Moortggage Banker—NY e — S Department of Financ i ial Services. New Yor o k Mortggage Banker e Liceense B500980/1076664. OH: Ohio Mortgage g Brok o eer Act Cer e tificatee of Registr e ation M MB.804213.000; Ohhio Mortggage Loan Act Cer e tificatee of Registr e ation SM.501517.000. OR: Mortggage Lender License ML4886. PA: Licensed by the Department of Banking. RI: Rhode Island s Liceensed Lender, Lender Liceense 20112809LL. VA: Licensed by the Viri gginia State Cor o poration Coommission MC--5382. NMLS ID 2600 (www.nmlsc . onsumerac a cess e .org). g WA: Coonsumer Loan Liceense CL2600. Also licensed iin AL, AR, CT, DE, DC,, FL, ID, IN, IA, LA, ME,, MD, MI, MT,, NM, NC, OK, SC, TN, TX, UT, WV, WI and WY. NOTICE: All loans suubject to credit e , underwriting i and prop o erty approval guidelines. Offered e e loan products may vary by state. The here is no guarant a ee that all borrroweers will qualify. Restricitionss may apply.. This h is not a commitment o too lend.. Terms e m , conditio o ons and programs a are subject too change without notice. This h infor o ma m tion is foor mortgage g prof o eessionals only ly and is not intended e for o distribution i to consumers. Carringt a ri on on Mortggage Servicees is not acting on behalf of or at the direc e tioon of HUD/FHA or any government en agency.y. All rights i reser e ved e.

n National Mortgage Professional Magazine n SEPTEMBER 2016

A F U L L R A N G E O F LOA N S O LU T I O N S

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U.S. home values are now entering their fourth year of consistent appreciation, according to new data released by Zillow. July marked the 48th straight month with rising home values, with Zillow’s Home Value Index reaching $187,300 last month. While July’s level represented a five percent year-over-year increase, it was still 4.7 percent below the April 2007 peak of $196,600. Among the major metro markets, Portland experienced the greatest appreciation in July, with home values reaching a median value of $334,900, up 14.7 percent from last year. On the rental side of the housing world, rents were up on national basis by two percent over the past year, with the Zillow Rent Index registering at $1,408 for July. This is the 47th straight month rents have appreciated. San Jose and San Francisco had the nation’s highest median monthly rents at $3,520 and $3,047, respectively. “The consistent rise in home values that we’ve been seeing for the past four years masks a number of region-specific trends that have taken place over the past few months,” said Zillow Chief Economist Svenja Gudell. “In most areas, the market is being driven mainly by a strong labor market and tight supply, especially among entry level homes that first time buyers are after. But some markets— especially the red-hot Pacific Northwest—are adding more jobs and attracting more residents, putting the pressure on home values and rents. The Bay Area and Southern California are still growing at a faster pace than the nation as a whole, but growth rates have come back to earth a bit after several years of rapid growth.” Separately, Pro Teck Valuation Services released its Home Value Forecast for August—and this

month, the trend appears to be favoring an Eastern ascension in home appreciation within the major Core Based Statistical Areas (CSBAs). “Looking deeper into our ranking shows that out of the 35 CBSAs we label ‘hot’ in our market condition ranking, 18 of them are from eastern states,” said Tom O’Grady, CEO of Pro Teck Valuation Services. “Looking at all seven of our market condition ratings shows that almost 70 percent of the CBSAs we track are in a normal condition or better—further evidence of a broad recovery.” The top markets for home values

co ia rn l er

co the m m er c

Optimize your small-balance commercial mortgage transaction process

By Michael Boggiano

1. Turn in a complete submission package. Be sure to review your lender’s checklist of requirements and ask any questions you might have. Communicate to the borrower what documentation is required and encourage them to submit the necessary documents as quickly as possible. By following the lender’s guidelines for submission and presenting a complete, organized package, you will establish credibility with the lender and expedite the process. 2. See if a previous title policy is available. Commercial title requests typically take longer to process than their residential counterparts and there’s a higher likelihood of issues, such as liens or encumbrances, being present. Having a previous title policy does not mean you will avoid issues with the title, but it can help streamline the process when underwriting begins.

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SEPTEMBER 2016 n National Mortgage Professional Magazine n

continued from page 15

Five Tips to Expedite Closing

ow you open a small-balance commercial transaction determines how it closes. While some lenders specialize in creating a smooth and reliable transaction process for brokers and borrowers, there are steps you can take to make a big difference for your clients. Try incorporating the following five tips the next time you partner with a lender on a small-balance commercial mortgage deal.

nmp news flash

3. Ensure a speedy appraisal. Help the borrower understand the complexity of commercial appraisals. Manage expectations by explaining that the valuation is based on both an income and sales approach. Appraisers must conduct market research for comparable sales and for market level rents, expenses, cap rates, vacancy and rent loss levels. One of the best things you can do early in the process is visit the property for a first-hand look. Make sure the subject property matches the description given by the borrower and perform an objective self-evaluation of the projected property value. You can prevent delays by submitting all documentation (property financials, leases, rent roll, photographs, etc.) before the appraisal is ordered. 4. Get complete property insurance and contact information from the borrower. This will save time as you near closing day.

among the top 10 list of priciest residential markets in Coldwell Banker’s 2016 Real Estate Home Listing Report, with six rankings based in the Silicon Valley region. Coldwell Banker uses a fourbedroom, two-bathroom home to reach its data conclusions. For this report, the California markets that reigned as most expensive were Saratoga (where a fourbedroom/two-bathroom home averages $2.45 million), followed by Newport Beach ($2.1 million), Cupertino ($1.81 million) Redwood City ($1.8 million), Arcadia ($1.74 million), Carmel ($1.72 million), San Francisco ($1.67 million), La Cañada Flintridge ($1.57 million), Sunnyvale ($1.5 million) and Los Gatos ($1.47 million). “While there are 25 communities in the U.S. where the average price of a four-bed, two-bath home is more than $1 million, it’s fascinating to find that nearly 40 percent of the cities we studied had like-sized homes for less than $250,000,” said Charlie Young, president and CEO of Coldwell Banker Real Estate LLC. As for the other end of the price spectrum, Detroit was ranked as the most affordable city, where one could buy a four-bedroom/twobathroom home for $64,110. The other most affordable markets, as per Coldwell Banker’s metric, were Cleveland ($73,073), Park Forest, Ill. ($78,392), Jamestown, N.Y. ($88,891), Utica, N.Y. ($92,891), Wilkes-Barre, Pa. ($94,436), Scranton, Pa. ($104,842), Huntington, Ind. ($105,614), Augusta, Ga. ($106,567) and Palatka, Fla. ($110,655). Homeowners Brimming With Confidence, Renters Not So Much

5. Communicate! Effective communication is essential for a successful closing. Set and manage borrower expectations from start to finish, and reach out to your account manager or lender contact whenever something is unclear. By facilitating a smooth transaction, you enhance your role as a trusted advisor to clients, which can earn you future business and valuable referrals. Michael Boggiano is national sales manager for Silver Hill Funding, a small-balance commercial mortgage lender offering nationwide financing from $250,000 to $1 million. He may be reached by phone at (888) 988-8843 or e-mail MikeB@SilverHillFunding.com.

SPONSORED EDITORIAL

It’s a good September to be a homeowner, according to the latest Zillow Housing Confidence Index, which reached 67.3 in July, up 0.4 from the last index report in January. Seven out of every 10 homeowners surveyed for this index report said now is a good time to sell a home, while less than 65 percent of homeowners surveyed said now is a good time to buy. However, 38 percent of renters

surveyed felt it was a good time to buy a home. But in the most expensive housing markets— including New York City, San Francisco, San Jose and Seattle— about half of the renters surveyed expressed minimal confidence in their ability to afford a home in the near future. But whether the current confidence levels expressed by homeowners will continue into 2017 remains to be seen. “During the past two years, housing confidence has increased in all but two of the metro areas that we study,” said Terry Loebs, the founder of Pulsenomics LLC, whose company conducted the research on behalf of Zillow. “Rising home equity levels, healthy housing market expectations among Millennials, and resilient homeownership aspirations among minority groups have all been factors in the robust readings of overall U.S. housing confidence. However, within certain metro areas and market segments, key sentiment indicators have begun to fade. Our measure of housing market expectations among residents of the largest and most expensive U.S. cities has actually fallen this year, and within most metro areas, the anxieties of prospective home buyers continue to rise. These and other signals in the [new] data suggest that home price appreciation and housing confidence could weaken in the coming months.” And speaking of renting, new data released by Apartment List found rents up by 0.1 percent from July to August, with national median rent prices of $1,120 for a one-bedroom and $1,300 for a two-bedroom unit. On a year-overyear measurement, rents are up by 2.3 percent from August 2015. The highest rents among major metro areas are found in East and West Coast cities, with New York City having the most expensive rents ($3,550 for a one-bedroom unit and $5,200 for a two-bedroom unit) and San Francisco in second place ($3,420 for a one-bedroom unit and $4,720 for a two-bedroom unit). Colorado Springs, Colo., saw the highest rent increases over last year, averaging 10.7 percent rent growth. Tacoma, Wash., saw the second greatest year-over-year rent growth at 9.2 percent, and Manchester, N.H., right behind with 8.6 percent year-over-year growth. continued on page 36

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n National Mortgage Professional Magazine n SEPTEMBER 2016

Using the Right Technology to Effectively Manage Appraiser Vendors Yields Key Benefits By Vladimir Bien-Aimé

SEPTEMBER 2016 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

here are multiple benefits that can be gained from using various types of appraisal software, but one that is of particular significance is a vendor management component. Having the technology tools and functionality to effectively manage numerous vendors is extremely important to efficiently complete the appraisal process without issues. Much of this comes in the form of effective communication with vendors. Things like automating the communication of assignments, setting reminders, setting tasks and providing status are essential. Some appraisal software systems allow lenders and appraisal management companies (AMCs) to handle portions of this, but they lack in the ability to empower users to easily configure how vendors are managed using a workflow-driven process. Setting up reminders throughout the workflow is extremely helpful and confirms that appraisers are notified in a timely fashion. This saves huge amounts of time and ensures nothing is missed. Another important part of managing vendors is scoring them for appraisal quality, which can also be a very time consuming undertaking if you don’t have a tool to manage it, and many times it simply goes undone. Just because an appraiser in a certain area is the closest or offers better pricing, is that really the best choice? Are they in good standing and properly licensed? Automated vendor management keeps you informed. For instance, appraiser turn times can be automatically tracked, stored and reviewed as needed. Communication scores can also be tracked when an appraiser updates the status of orders. Things like appraiser licensing, turn times, communication levels and much more can all be automatically analyzed and scored using a valuation management platform that includes vendor management tools. Without the right technology, however, this would be very time consuming, and costly to complete. If you don’t manage your appraiser vendors through a valuation management platform in a proactive manner, then how do you do it? Where do you store the data? How do you prove that you stay on top of your appraiser errors and omissions (E&O) if/when you get audited? How do you know when someone’s data needs to be updated and exactly when it is updated? Using technology to automate the vendor management function enables you to be completely proactive with all of this. It saves you inordinate amounts of time while staying on top of your vendor data. Centralization, communication, transparency, tracking, scoring and reporting is the way to do it. But you need the right technology to do it.

Vladimir Bien-Aimé is president and CEO of Global DMS. Since founding the company, BienAime’ has grown Global DMS to capture a leading share of the valuation management segment. He may be reached by phone at (877) 866-2747, email Vlad@GlobalDMS.com or visit GlobalDMS.com.

SPONSORED EDITORIAL

new to market

continued from page 13

Homebuyer Privileges program to include discounts for nearly 300,000 retailers nationwide, including Target, Costco, Sears Commercial and ADT, among others. The program allows homebuyers to save up to $7,500 through a variety of retailer coupons. Loan officers can extend these savings to homebuyers regardless of whether or not their loan includes private mortgage insurance from Genworth Mortgage Insurance. Homebuyers have up to 12 months to enroll in the program, and up to 12 months after enrolling to utilize the discounts. “Our research shows that down payments are still the biggest obstacle to homeownership for many consumers,” said Rohit Gupta, president and CEO of Genworth Mortgage Insurance. “By expanding our Homebuyer Privileges program, our customers can offer even more savings that might allow prospective homebuyers to better control their costs and achieve their homeownership dreams sooner.” IDS Adds Fulfillment Dashboard to Doc Prep System Mortgage document preparation vendor International Document Services Inc. (IDS) has announced that it has introduced a fulfillment dashboard to its flagship mortgage document preparation system, idsDoc. Through the dashboard, users will have the ability to view, track and manage all document fulfillment requests to IDS through a single location. “With the strict disclosure delivery timing requirements imposed by TRID, it is more critical than ever for lenders to be able to quickly and easily keep track of the status of loan documents,” said Mark Mackey, vice president of IDS. “Keeping our clients compliant with TRID has been at the top of IDS’s priority list, and we continue to refine our system to meet lenders’ needs.” The dashboard was designed to track the status of document packages that have been submitted to IDS for fulfillment and provide users with a historical record of all previously fulfilled

document packages. Under the “Active Packages” tab, users can view each document package and see what method was used to deliver the documents. Users can also drill down to the individual document level to determine what documents have been signed and completed for that loan package. In addition, the dashboard also tracks the borrower’s progress in completing the loan package. For example, when documents are delivered electronically and are to be executed via E-Sign, the dashboard will let the user know when the initial notification was sent, when the electronic consent received and whether the borrower has completed the ESign process. The system also includes a separate “Wet Sign” tab to manage documents that cannot be signed electronically. From this tab, users can also easily review, add or remove documents for wet signature using the document name as listed in the document list from the PDF package file. Snapdocs Launches New Suite of Administrative Tools

Snapdocs Inc. has announced the rollout of Snapdocs Enterprise, a new suite of tools that further reduces redundant back-office administrative tasks related to the mortgage process, particularly out-of-office mortgage loan closings. Snapdocs Enterprise was developed to meet the demands of dozens of large-scale national title and settlement companies joining Snapdocs this year, to provide a unifying layer of control and compliance during critical steps of the closing process. “Lenders have come to expect a level of service and compliance that companies can’t deliver without the right technology,” said Snapdocs CEO Aaron King. “Facilitating more than 40,000 mortgage closings every month makes Snapdocs uniquely positioned to put interesting workflow data into the hands of a talented engineering team tasked with building a new standard in modern closing technology.” Snapdocs’ signing agent verification feature gives mortgage lenders and title continued on page 60

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n National Mortgage Professional Magazine n SEPTEMBER 2016

including bein ng ranked #1 in TTo op

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solutions, our Broker Associates have had plenty of reasons to celebrate.

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NAMB President’s Message: September 2016

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I’ve watched our association thrive as I’ve had the privilege to serve the state of California and now as president of NAMB—The Association of Mortgage Professionals. I’m thrilled to say this has led to an incredible opportunity to serve as your new president. I hope to take what outgoing NAMB President Rocke Andrews accomplished this past year and leverage his and the board’s success. He and I have been collaborating for the last year, so the transition to the new board will be seamless. One of my goals for the upcoming year is to increase state participation. While our NAMB membership has increased as a whole, some state chapters have fallen to the side over the years. I am also looking to increase NAMB convention participation, not just among mortgage originators, but with others in our industry as well, including wholesale lenders and home appraisers. I will also be focused on increasing NAMB-coordinated education and training. As I am now beginning my tenure as the NAMB president, I can surely say that I am ready to embark on this journey with all of you. I am thoroughly excited to lead you and an incredible team of volunteers. I have learned so much from many of you these past years, and I have to say, I am extremely optimistic about our future as an industry of mortgage professionals. I learned to do the right thing for clients and peers from my business partner, friend and past president of the California Association of Mortgage Professionals (CAMP), Fred Arnold, and I have refined that into making a difference. Each time I write and speak to loan originators, I hope that I have inspired many of you to advocate and inspire others. Your new NAMB board is filled with passionate individuals who will inspire you all. Please lend them your advice and support, as you do for me, and I promise that it will come back to you tenfold. A couple of years ago, I attended a law school graduation where the keynote speaker had a great commencement speech on branding. Now you might think, what does branding have to do with being a lawyer or mortgage professional? Well, I invite you to follow the logic behind, “What is branding?” One definition of branding is, “The process involved in creating a unique name and image for a product in the consumers’ mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.” The keynote speaker went on to say, “Project yourself to 2023 (10 years from now) and what will your brand be?” He began to ask seven questions of the newly minted law graduates. Most of the questions pertained to civility, ethics and integrity not just with their clients, but also to one another. Branding is based on how we, as mortgage professionals, interact with our clients and each other. This brings me back to my message of “gratitude” and what it means to be part of something greater with the responsibility that all of us have to give back to our industry. I have spoken to state chapters about William Buckley’s book, Gratitude over the last couple years. Buckley suggests that citizens of the United States ought to feel a debt of gratitude toward their country. A debt that can best be repaid by volunteer service of the charitable kind. Buckley emphasizes that volunteering extends past providing service to the needy and repaying a social debt. Volunteering leads to an enhanced sense of civic pride. The individuals who engage in volunteering will find their altruistic impulses aroused. They will learn about aspects of life they would be unlikely to encounter

otherwise. They will even come to realize that there is more to life than self-indulgence. This industry provides great prosperity and I am asking that you give back this year and beyond. Ask yourself today, how can you give back to the industry in which we have all chosen to participate? We all have to ask ourselves: What can I do in order to give back? 1. If you are not a member of your industry association, JOIN! 2. If you are a member, attend monthly chapter and state events, PARTICIPATE! 3. If you attend monthly chapter and state events, VOLUNTEER for a local board position and lend your time and thoughts on improving the organization. 4. Respond to Calls to Action. Do not let the person next to you to speak on your behalf. SPEAK UP. Your voice and message need to be heard. I know that all of us are busier now than we’ve ever been in the past. Business has been compressed and there are fewer originators than in the past. This is a fantastic opportunity and I challenge every one of you to choose one of the four tasks I just mentioned and engage. I am proud and honored to serve you, and I look forward to sharing great practices of what gratitude means to us today. I will leave you with a great quote from Theodore Roosevelt from his speech “The Man in the Arena:” “The credit belongs to the man who is actually in the arena … who spends himself in a worthy cause … so that his place shall never be with those cold and timid souls who neither know victory nor defeat.” Thank you and Namaste. Fred Kreger, CMC, 2016-2017 President NAMB—The Association of Mortgage Professionals Fred.Kreger@APMortgage.com • JOINNAMB.com

The CEO Perspective A Message From NAMB CEO Donald J. Frommeyer I want to thank all of you for coming to NAMB National. The commitment and dedication that you show by coming to learn really tells NAMB that we are doing this right. If you happen to see one of the members of the board of directors, please tell each of them thanks for everything they do. These individuals work very hard to make sure that this conference is done right with absolutely no compensation. They have really done a great job for the past five years. One of the things that my job entails for NAMB is to come up with some ideas to help the association. We have worked very hard to bring wholesale lenders together to meet twice per year. At this Wholesale Summit, we will be having the fourth of these meetings and we are trying to make it totally worthwhile for all of the lenders who attend. This time, the Summit will have a very in-depth analysis of the appraisal issues that are taking place across the United States. We have brought two appraisal management companies (AMCs) in, along with someone from The Appraisal Institute, to help all of the lenders understand what they are going to have to do to make this situation better for all of the parties involved. As most of you know, membership is changing in the association’s by-laws and we will be having two categories of members. The first one will be the Professional Member, which is basically all members who have an NMLS license will be classified as Professional. All other members will be considered

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Associate Members. This way, all voting members are understanding of the two different classes. Both of these memberships now cost $120. Which, if you look at other associations, we are still much cheaper in price than joining those others. The new board of directors will be taking the oath of office on Sept. 25 at the NAMB National Awards Gala. This group will be led by Fred Kreger as the new NAMB president and he has some great ideas coming into the new year and will be going over these ideas in his speech at the Gala. Please make sure that you register for this event. The Gala is also where we are going to announce our major awards of Mortgage Professional of the Year, The Kathy Love Volunteer of the Year and the NAMB Affiliate Company of the Year. So come out and join the fun. Donald J. Frommeyer, CRMS is chief executive officer for NAMB—The Association of Mortgage Professional. He may be reached by e-mail at NAMB.CEO@NAMB.org.

NAMB East Headed to Atlanta By Linda McCoy, CRMS

NAMB’s Government Affairs Committee had a very busy year. Between our legislative efforts regarding HR 3393–The Mortgage Fairness Act of 2015, the creation of our legislative advocacy page which can be accessed from the NAMB Web site, our legislative blog at NAMBGA.org, our Webinars which aim to provide resources for loan originators, and a very successful Legislative & Regulatory Conference in Washington, D.C., NAMB’s Government Affairs Committee made its mark in 2016. NAMB continues to work towards the passage of HR 3393–The Mortgage Fairness Act of 2015, originally sponsored by Rep. Bill Posey (R-FL) and Rep. Dennis Ross (R-FL). This bill aims to remove lender-paid compensation from the three percent points and fees cap under the Qualified Mortgage (QM) Rule. Why is this legislation needed? Why can’t the Consumer Financial Protection Bureau (CFPB) handle this issue without legislation? The CFPB discussed this issue in the Federal Register and determined legislative action would be needed in order to correct their interpretation of the statute. Specifically, the CFPB published the following paragraph in the Federal Register: “The Bureau stated in the 2013 Ability-to-Repay Proposed Rule that the exclusion from points and fees was warranted because a payment from either a consumer or creditor to a mortgage broker firm already is counted in points and fees, and that it would not be necessary or appropriate to also include in points and fees any funds that the mortgage broker firm passes on to its individual loan originator employees.”—CFPB Final Loan Originator Compensation Rule, page 75, May 29, 2013 NAMB and its lobbyist, Roy DeLoach of DC Strategies, will continue to work towards the passage of this important legislation. Late last year, we launched our legislative advocacy page which can be accessed from the NAMB Web site through our Legislative Action Center. As part of this page, the committee has the ability to create targeted Calls to Action when NAMB is in support of or opposed to legislation that directly affects our members. In addition, we have the ability to share important government affairs-related information, such as important news features focused on housing, small business and mortgage origination as well as state and federal bills that NAMB may support or oppose. Also, the Government Affairs Committee created a legislative blog page, NAMBGA.org, where we can share articles and information that may be of interest to our members and those in the mortgage industry. This site also links directly to the NAMB Facebook and Twitter pages and has proven to be an important social media tool for the GA Committee, as well as for the association. The Committee has also focused on providing resources to the individual loan originator through its Webinar Series which began in mid-2015 with an Integrated Disclosure Rule Webinar partnering NAMB with the National Association of Realtors (NAR). Since that time, we have presented Webinars on topics such as revisions to the FHA Handbook, Social Media Compliance, Marketing Services Agreements (MSAs), Loan Originator Compensation, and much more. To date, our Webinars have been attended by thousands of mortgage professionals. Finally, we presented a very successful Legislative & Regulatory Conference in Washington, D.C. in April. This sold-out event featured presentations from Terry Clemans, executive director of the National Consumer Reporting Association (NCRA) on trended credit data, Freddie Mac, the CFPB, NAR, the American Land Title Association (ALTA) and Rep. Bill Posey (R-FL). The culmination of our conference

n National Mortgage Professional Magazine n SEPTEMBER 2016

Linda McCoy, CRMS of Mortgage Team 1 Inc. in Mobile, Ala. is a member of the NAMB board of directors. She may be reached by phone at (251) 6500805 or e-mail Linda@MortgageTeam1.com.

By Valerie J. Saunders, CRMS, Government Affairs Chair

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NAMB has chosen a city approximately 1,950 miles from Las Vegas for our 2017 NAMB East conference. This city has the world’s busiest airport, Hartsfield Jackson International Airport, to make it easy to fly into from anywhere in the U.S. Atlanta was made famous for Margaret Mitchell’s “Gone With The Wind” and General Sherman’s Burning of the city on his way to the sea during the Civil War. Atlanta is the birthplace and home of Martin Luther King and one of the most important cities in the American civil rights movement. It is the home of the Braves, Falcons, and the Hawks. People come from everywhere to visit the world’s largest aquarium, and the city played host to the 1996 Summer Olympics. This city is rich in history, just waiting for you to explore. NAMB East will be held at the Omni Atlanta Hotel at the CNN Center. This Hotel is located directly across from the Fountain of Olympic Rings and Centennial Olympic Park in the Luckie Marietta District. In walking distance, you can visit the World of Coca Cola, the Georgia Aquarium, the National Center for Civil and Human Rights, the College Football Hall of Fame, the Sky View Atlanta Ferris Wheel, and the area is home to Atlanta’s “Restaurant Row,” where diners will find many trendy options for dining. We chose this city so attendees would be able to bring their families while attending our conference. The Hawks will be playing during the time we are there in the Philips Arena, which is located directly behind the CNN Center. Mark your calendars now for Thursday-Saturday March 16-18, 2017. I am honored to serve as chair of the 2017 NAMB East Conference Committee. You know I am passionate about making this one a great success. Sign up early for your booths if you are a vendor, make your plans to attend if you are a broker, originator, lender or in any way, connected to the mortgage industry. This event will be a great trip for the whole family. We are planning our agenda now. NAMB has the best networking mortgage association in the entire industry. If you have any ideas you would like to share, please contact me by e-mail at Linda@MortgageTeam1.com. I am asking NAMB’s members to support your association and come and be a part of NAMB East 2017 in Atlanta.

NAMB’s Government Affairs Committee … The Year in Review

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was lobbying on Capitol Hill to promote the initiatives of the association. Lobbying is the most effective grassroots tool we have to share our concerns directly with our elected officials. In conclusion, the Government Affairs Committee of NAMB is proud of their efforts over the past year and looks forward to our continued support and protection of the industry’s mortgage professionals. Valerie J. Saunders, CRMS is Government Affairs Committee chair for NAMB—The Association of Mortgage Professionals. She may be reached by phone at (866) 992-0785 or e-mail ValSaun@gmail.com.

Is Donating to NAMBPAC Really Worth it? You bet it is! By Mike Anderson, CRMS

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Considering politicians spend a great deal of their time raising money … think about this, if your representatives are spending time raising money and if they receive an unsolicited donation, you now have their ear. Believe me when I tell you that when I need a meeting with my two senators, I get it because I’ve donated and promoted fundraisers. Donating to NAMBPAC and the NAMB Legislative Action Fund is a wise investment considering trade associations bring competitors together, turning one small voice into a persuasive, collective shout. This can be particularly helpful when independent businesses need to mobilize quickly, such as when facing proposed political initiatives that threaten the industry. For example, signage is regulated at the local level, but sign shops that are members of national signage associations may have access to legal experts who are familiar with nationwide regulation. Their insight and advice is often crucial when proposed local ordinances arise. The year 2017 will be a year of surprises, depending on who is elected in November and appointed to each cabinet. We need to be prepared by building up our PAC and Legislative Action Fund so we can hit the ground running. Know the difference l NAMBPAC: You can donate from your personal credit card or bank account to the NAMBPAC up to $5,000 a year. In addition, individuals can also contribute $1,000 for any candidate running for office. l NAMB Legislative Action Fund: Contributions to NAMB’s Legislative Action Fund will provide much-needed additional financial support for NAMB’s government affairs efforts. These contributions will not be used to contribute to political campaigns. You can use personal or business funds for these donations. If you truly care about the profession you are in, it should be a part of your business strategy to donate to your trade association’s PAC funds because believe me, it does work! Mike Anderson, CRMS of Mortgage Financial Services is incoming PAC chair for NAMB—The Association of Mortgage Professionals. He may be reached by phone at (504) 451-3339 or e-mail MAnderson@MFSUS.com.

One Percent Is All It Takes By David Luna, CRMS

I read a tremendous amount of information on a daily and weekly basis. I am noticing a trend that may be a wave of things to come and it is normal. The FHA was created back in 1934 to assist in getting people out of cardboard boxes, Hooverville and turn shanty towns into homes. For much of my career, I have seen FHA on the sidelines as conventional loans took center stage. Don’t get me wrong … there was always a place for FHA and it is a great loan. However, only when times get tough have I seen the FHA really shine. Which bring me to the point of this message. The FHA, under the False Claims Act (FCA), has been suing and winning suits against lenders who have been doing a great deal of volume of FHA loans. The FHA has won huge settlements and has made money from these settlements. I am not saying if these were right or wrong, that’s for the courts to decide. What I have seen as I travel the country is a shift away from FHA into new and I think very exciting opportunities. I think it started with Quicken Loans and the lawsuit against them under the False Claims Act regarding their FHA loans. Quicken decided to stand firm in that they felt that they had committed no wrongdoing. Where other lenders for whatever reasons decided to pay, Quicken has chosen not to settle. There has been an exciting new loan to come out of all of this The one percent conventional loan. Comparing this to FHA will require a 3.5 percent downpayment. In the past, we knew conventional loans needed at least a three percent downpayment. Here is the new twist. Lenders are moving away from FHA and all the potential litigation by working with first-time homebuyers and only requiring they put one percent down. The remaining two percent is from the lender to make the minimum three percent down. We have all heard that the reason some Millennials are stalled from buying their first home is their student loans and the need to come up with the downpayment. The new options available are allowing these future homeowners the ability to take advantage of historically low interest rates now. The problems of there not being enough properties on the market has been a topic of other news articles. The question of if the PMI companies will insure these low downpayment loans has already been answered. And their answer is YES! Why to some of these lenders feel that need to make these changes may be in the amounts of the huge fines paid. Wells Fargo1 agreed to pay $1.2 billion, Bank of America2 paid $800 million, M&T3 paid $64 million as well as Quicken if it loses its suit. Of course the FHA wants lenders to make FHA loans and the vacuum is being filled by other lenders. Is this the solution the industry needs? Has the FHA and the Department of Housing & Urban Development (HUD) been hijacked by the Department of Justice (DOJ) using the False Claims Act? Do the lawsuits have merit? I don’t know we all will need to wait and see, but what I see is a new type of loan out in the industry that make me sit up and take notice. Competition is healthy, innovation is the future. We are dealing with new borrowers that are demanding something different than in the past. As I look back on my 30 years in this industry, I have to agree we don’t do things in 2016 like we did in 1980 and that’s a good thing. If I could share my crystal ball with you. The next few months are going to be exciting and challenging as the mortgage industry continues to changes. First with the full introduction of trended credit data in September. The new changes to the 1003 coming which will be the first significant changes in 20 years. The new HMDA reporting requirements in 2017 that required the needed changes to the 1003. The commonsense that is still in the industry where FHFA listened to industry’s objections and changed their stance on Limited English

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Proficiency (LEP). This requirement would have asked the borrower if they would like to receive the loan origination process in their language and would have been a nightmare to implement. Think of the costs of a translator for the 1003 and would the borrower want the note and all other documents in their language too? What would the charge have been for those translation services on the Loan Estimate (LE)? It sure is an exciting time to be in the mortgage industry! I love this business and I wanted to send a huge “Thank You” to all of you. In July of 2016, I was included along with 49 others to be named as one of the “50 Most Connected Mortgage Professionals” by National Mortgage Professional Magazine. Alone with my peers, many of whom are my friends, I thank this publication and thank you. See you in Las Vegas at NAMB in September! Footnotes 1—Justice.gov/opa/pr/wells-fargo-bank-agrees-pay-12-billion-improper-mortgagelending-practices 2—CharlotteObserver.com/news/business/banking/bank-watchblog/article62456277.html 3—BuffaloNews.com/business/mt-whistleblower-to-share-in-64-million-fine-forloan-rules-violations-20160513

David Luna, CRMS has more than 35 years of experience in the mortgage lending industry. He is president of Mortgage Educators and Compliance, an NMLS-approved education provider, and is a member of the NAMB board of directors. He can be reached by phone at (801) 6762520 or e-mail David@MortgageEducators.com.

Let’s set the stage for non-credit continuing education By Bob Sweeney, CRMS

As I mentioned in my June article, we all think our SAFE eight hours of continuing education is enough? It is not enough. Our industry and industry rules are constantly changing. We need to stay current with the latest product developments, skills and new technologies and seek out internet and live classes available to us but we need to take time out of our busy schedules and take advantage of them. If you are not an expert in VA, FHA or USDA requirements, for example, now may be the time to become an expert. Although the following is related to self-improvement books, I still think it applies. Brian Tracy, says in his book Time Power, “Read at least one hour per day in your chosen field. One hour a day will translate into approximately one book per week. One book per week will translate into approximately 50 books over the next 12 months. If you read an hour per day, one book per week, you will be an expert in your field within three years, you will be a national authority in five years, and you will be an international authority in seven years. All leaders are readers.” What a powerful statement! We welcome any input from all mortgage professionals. If you would be interested in joining the Education Committee and become part of our future success in the education of our independent mortgage companies and mortgage loan originators, please feel free to contact me at Bob.Sweeney46@yahoo.com. If you are not an NAMB member, now is a great time to become a member. Go to your state association Web site or NAMB.org and join as a Professional Member. Bob Sweeney, CRMS is a member of the board of directors of NAMB–The Association of Mortgage Professionals and serves as the association’s Education Committee chair. He can be reached by phone at (317) 625-3287 or e-mail Bob.Sweeney46@yahoo.com.

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Ever since the SAFE Act required eight hours of NMLS-approved education annually, I have been hearing from too many mortgage loan originators that the eight hours of continuing education is enough, or too much, and the professional development non-credit education course options have to take a back seat. In their defense, I have spent the last few days viewing the Web sites of most of the major NMLS providers, and to my surprise, other than Federal Law, Compliance and Regulations, there are very few companies offering non-credit continuing education courses to our mortgage loan originators relating to the latest product developments, skills, new technologies and rules changes to FHA, VA, USDA, 203k, Reverse and Mortgage Origination 101 and Mortgage Processing 101, as examples. One major reason is a lack of experts and qualified/certified trainers willing to get more involved in the non-credit continuing education of our mortgage loan originators. There has never been a better time to get more involved in the training of our mortgage loan originators. NAMB’s Education Committee is working very hard in resurrecting the Train-The-Trainer course once offered by the NAMB Education Foundation, which is no longer active. I can tell you from first-hand experience as a wholesale account executive for more than 25 years, that I received the majority of my business as a result of training noncredit continuing education classes. In the past 17 years, I have been the trainer on 28 different mortgage subjects. The NAMB Education Committee has been very active in the area of recruiting new mortgage loan originators. We are very close to being able to offer a class for individuals seeking to get into the

1. Be more qualified 2. Make more money 3. Demonstrate success 4. Gain a competitive edge 5. Secure your future 6. A better lifestyle 7. Gain confidence 8. Improve your social network 9. Improve your mortgage knowledge 10. Become an industry expert

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NAMB’s Education Corner: Non-Credit Continuing Education

mortgage business for the first time. It would be very similar to the Residential Mortgage Lending (RML) class that was offered years ago by the NAMB Education Foundation. We are working to create a few noncredit continuing education classes as well, with a few third-party companies in very specific areas such as FHA, VA, USDA, etc. There are many reasons on why non-credit continuing education is important. Each person has their own motivations. Below is a short list of reasons to continue your mortgage education.

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What Has Gone Wrong With Appraisals? By John Councilman, CMC, CRMS

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Recently, more and more originators are complaining that appraisals are taking a month or even two months to process. If you want an appraisal in several weeks, appraisers are charging as much as twice the normal rate. It isn’t happening everywhere yet, but an ever-increasing portion of the country is experiencing an appraisal shortage for mortgages. To understand why, we cannot just send someone off to some classes and create new appraisers. We have to understand what it takes to be an appraiser. When the Savings & Loans crisis blew up in the late 1980s, Congress passed legislation that created appraisal licensing. That legislation was called the Financial Institutions Reform, Recovery and Enforcement Act of 1989 or FIRREA for short. FIRREA created an entity known as The Appraisal Foundation (TAF) and the Appraisal Subcommittee (ASC), which oversees the work of The Appraisal Foundation. TAF has two boards, the Appraisal Standards Board (ASB), that sets the standards of what is acceptable appraisal practices and the Appraisal Qualifications Board (AQB), that sets the qualifications for licensed and certified appraisers. The really weird part of all of this is that these boards have no direct power over appraisers. States still regulate appraisers, not these boards. But, states are required to create regulations that adhere to what the ASB and AQB promulgate. If they don’t, the ASC has the ability to prevent FDIC institutions from lending on real estate in those states, a pretty big stick. The controversial part of all of this is the ASB and AQB are primarily composed of appraisers. Appraisers believe that their profession should be set on par, not dissimilar to CPAs, professional engineers, etc. These professions require a degree and stiff examinations. Over time, the AQB has steadily increased the requirements to become an appraiser to the point where it is somewhat difficult to enter the profession. Not only do certified appraisers need a fouryear degree and pass a tough exam, they must have an internship of 2,500 to 3,000 hours. Getting an internship or “trainee” position is difficult, if not impossible, since no appraiser wants to train a competitor. The net result of all of the qualifications currently required is a serious shortage of certified appraisers in an ever-increasing numbers of states. A third category that could act as a slight pressure valve, the Licensed Appraiser, is shut out from FHA work so they are often not included on appraisal panels. Still, a mere license requires significant education and testing and 2,000 hours of trainee work.

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As if the exclusionary qualifications of the AQB weren’t enough, Fannie Mae and Freddie Mac were pressured into the HVCC in 2008. HVCC was forced on the government-sponsored enterprises (GSEs) by then New York Attorney General Andrew Cuomo who had close ties to an appraisal management company (AMC). The HVCC prohibited anyone in the origination side of a mortgage company from ordering, selecting, or even speaking to an appraiser. Although lenders could still create panels, the firewalls more or less forced them to use AMCs. Shortly after the HVCC went into effect, the FHA created similar appraiser independence rules. Eventually, the DoddFrank Act codified nearly all of the HVCC, giving enforcement over to the Consumer Financial Protection Bureau (CFPB). For fear of repurchasing loans that violate the appraisal independence rules, AMCs have become an engrained feature of the mortgage industry. Many appraisers complained that the pressure to over-appraise was replaced with pressure from AMCs and lenders to under-appraise. Prior to HVCC, an appraiser could have numerous sources of assignments. With the advent of HVCC and appraiser independence rules, appraisers must work for an AMC if they intend to have any volume of business. Essentially, an appraiser has less chance of having independence than prior to the prevalence of AMCs because there are fewer employers. Some AMCs are notorious for paying appraisers less than half of the appraisal fee. Appraisals that cost $250 to $350 prior to “appraisal independence” now cost borrowers $450 to $600 or more. Up to now, Fannie Mae, Freddie Mac and the FHA have not pressed a single claim of underappraising or price-gouging of consumers. The CFPB has been notoriously silent. Meanwhile, the most experienced appraisers are either retiring or doing work for entities other than AMCs. The result is what we are seeing at an alarming rate, excessive turn times and borrowers being ripped off to get an appraisal in a reasonable amount of time. As someone who was a practicing appraiser, as well as a mortgage broker prior to FIRREA, I sympathize somewhat with the appraisers. We can return the appraisal profession to an enjoyable, well-paid profession. We need to re-evaluate the use of AMCs. We need to reconsider the qualifications for appraisers, especially the Trainee issues. Regulators need to reconsider the regulations that strangle the industry and result in far greater costs to borrowers. There are many reasons the inappropriate behavior of the last decade is unlikely to happen again. Mortgage originators were not licensed and had no ethics training. There were no criminal background checks for originators or appraisers. Fannie Mae, Freddie Mac and the FHA have all instituted sophisticated automated valuation models (AVMs) that nip fraud before the appraisal is even finished. Breaking the law regarding appraisals now carries felony charges. What is NAMB doing about it? First, NAMB has an open dialog with the appraisal trade associations like The Appraisal Institute. I serve on the Appraisal Foundation Advisory Council (TAFAC) and particularly on the AQB Issues Committee. The good news is the Appraisal Foundation realizes that entry into the industry needs a relook. Wholesale lenders will be discussing appraisal issues with a top Foundation representative and AMCs at the Wholesale Summit in Las Vegas in September. You can help by joining NAMB or getting others to join so our legislative efforts are magnified. If you would like to become more involved, contact our office or come to the NAMB booth at NAMB National in Las Vegas. We need every originator on board to win battles like this one. John Councilman, CMC, CRMS of AMC Mortgage Corporation in Ft. Myers, Fla. is past president of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (239) 267-2400 or e-mail JLC@AMCMortgage.com.

NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, I am still regularly asked by colleagues and friends across the country what exactly NAMB+ is all about. NAMB+ is a subsidiary of NAMB, but is an independent, for-profit company, which is run by its own Board of Directors. NAMB+ was created by NAMB to pursue business opportunities that NAMB itself can’t pursue as a non-profit organization. NAMB benefits by being able to receive taxexempt dividends from NAMB+, which help NAMB increase its non-dues revenue and better serve its members and non-profit mission. To date, NAMB+ has focused primarily on increasing the value of NAMB Membership by building relationships with some of the best product and service providers in the industry and securing exclusive discounts, promos and offers for NAMB Members. I personally take advantage of a number of these offers from

Go to BestMLOs.com to start learning from the best. NAMB members enter NAMB Member Coupon Code: NAMB15

As an NAMB member, Birchwood Credit Services will waive the sign up fees! It’s a “NO RISK” way to experience the Birchwood difference ﬁrsthand!

multiple NAMB+ Endorsed Providers and I really encourage you to take a closer look at what they might be able to do for you. If you are in Las Vegas for NAMB National, please stop by the NAMB Booth in the Exhibition Hall and say hello. NAMB+ will be there all weekend to answer any questions you have about NAMB+ and help connect you with our NAMB+ Endorsed Providers. Sincerely,

Nathan Pierce, CRMS, CMP, President NAMB+, Inc. l npierce@advfund.com See below for a complete listing of the current NAMB+ Endorsed Providers and visit NAMBPlus.com for more information.

NAMB members get a $300 discount on coaching. NAMB members receive exclusive discounts training events, including live seminars and internet-based web shops

MBS Highway provides daily guidance and insights from Mortgage Market expert Barry Habib who predicted the bottom of the Housing Market. Exclusive NAMB Members offer to try MBS Highway FREE for 30 days. Visit MBSHighway.com/registration/namb-plus-registration

SYNCRO connects mobile salespeople to their ofﬁce website leads. NAMB Members receive a 10% discount off regular prices for monthly unlimited SYNCRO Web Chat packages.

The Bond Exchange is a national surety agency specializing in providing mortgage license bonds to thousands of mortgage professionals across the country.

NAMB members receive a 15% discount on all Custom Canvas Prints products and services!

In a world where image is everything, Warm Welcome helps you create the perfect image. Personalized services include: Social Media Management, Corporate Gifts and Promotional Business Items. NAMB members receive a 10% discount off regular prices for Warm Welcome LLC products and services. Contact us today for a free personalized quote info.warmwelcomellc@gmail.com

NAMB Members will receive a Twenty-Five Percent (25%) discount off of the regular price with their NAMB Membership.

Simplii VOIP business phone solutions include all the features and functionality of a high end business phone system without the high costs. We offer all NAMB members a 10% discount off their phone services. For more information please e-mail stevew@simplii.net

WhoHub (www.whohubapp.com) is a FREE marketing tool for local Realtors to refer their best Loan Officer. The service is FREE for the agent and their clients so it gets shared among local friends, family and neighbors who will see your profile. Each loan officer pays just $30/month for unlimited agent connections. Whether you connect to 1, 15 or 100 agents – still just $30/month. That’s right; one new borrower pays for the service for years! NAMB members get their first 90 days for just $1, month to month thereafter, cancel anytime.

NAMBPLUS Login Instructions InfoSight, Inc. offers proven and affordable cyber security, risk management, IT Infrastructure and regulatory compliance solutions. Visit www.infosightinc.com or contact us at 305-8281003 / 877-577-9703.

If you want a social and mobile marketing strategy that gets noticed contact Social5 today for a FREE consultation and demo and to receive your NAMB member discount pricing.

Username = Member Number Password = First initial of your first name capitalized and your last name with the first letter of the last name capitalized (example = JStevens) *If you are not a NAMB member please visit NAMB.org and join today to gain access to NAMBPLUS.com and the many benefits NAMB members receive!

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eEndorsements promotes your success by making it easy to capture customer reviews, control your content, and publish your testimonials where they matter to drive new business. Automatically share your reviews on Facebook, Twitter and Linkedin. Easily invite your clients to share reviews to sites like Yelp and Zillow. eEndorsements will also hosts a review proﬁle page indexed and found in Google Search. eEndorsements offers a 34% discount to NAMB Members. For more info please visit http://eendorsements.com/namb.

Morf Playbook™ by Morf Media is software that allows you to train your staff and customers. You can create your own training, add your policies and procedures or select courses from the Morf Partner Portal. Whether you are looking for CFPB compliance training, sales training or new loan ofﬁcer training, Morf can connect you with exactly the training you need. If you can write about it, record a video about it or talk about it…YOU can train on it with the Morf Playbook™! Find out more at www.morfmedia.com/namb.

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NAMB members receive a discount off Brokers Compliance Group compliance support programs.

USA Business Lending is the nation’s premier commercial brokerage ﬁrm representing over 3500 lenders.

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getting toknow FRED KREGER, CMC 2016-2017 President NAMB—The Association of Mortgage Professionals B Y

As a mortgage professional, what does NAMB mean to you? This industry has enabled me to achieve homeownership and put my kids through school, and

What are you primary goals as the next president of the association? I am eager to increase state participation—some state chapters fell to the side over the years, for a variety of reasons—while increasing membership as a whole. I am also looking to increase NAMB convention participation, not just among mortgage originators, but to other folks in our industry, including wholesale lenders and home appraisers. I am also focused on increasing NAMB-coordinated education and training. How would you categorize NAMB’s influence on Capitol Hill and with federal regulatory agencies, most notably the CFPB? One great part we have seen over the last five to six years is NAMB being called upon as the de facto association to represent mortgage originators. And the organization is working with Washington, D.C.— we never tried to create enemies by saying, “Bad regulators! Bad Congress!” We used facts and dialogue and have fostered improved relations with legislators and regulators, even at the state level. With Dodd-Frank, NAMB has pointed out different directions that the CFPB may want to be pursue in regard to that law. Consumers need protection and that is number one priority we

have—and we just want to make sure it is done the right way. It has been estimated that the average age of a loan officer is 54-years-old. In your opinion, what can the industry do to bring more young people into mortgage careers? There is a new organization that was recently founded called the Young Mortgage Professionals. NAMB wants to be a mentor to that association. Many Millennials join our business because their families are in it. But to attract young people that have no family connection, we have to get in touch with the local colleges that are doing business and real estate classes to let them know that careers in this industry are available. We also need to realize that today’s Millennials are operating on a different mind frame. They want to be coached—they do not want to have a boss. We need to teach and train them in the way they want to be taught and trained. But, after all, we look at Millennials the same way the generation before us looked at us. The mortgage industry has faced an unprecedented wave of regulatory changes over the past several years. Do you see more changes coming? That’s a good question. I don’t see many changes happening. I see more redefining of the unintended consequences of last several years—most notably with the Qualified Mortgage rule and the

question of appraisal independence. I believe this will go on for the next 12 to 24 months. I also see similar action at state levels. Many states look at the federal government for their regulatory examples, believing that they were helping consumers, but that also may have created unintended consequences. What role will housing-related issues play in this year’s election? It needs to play a big role, and I am disappointed that the candidates have not come out with housing solutions. We’re still not out of the woods, and certain portions of the U.S. are still hurting, especially in many cities where there is a limited amount of affordable options. Here in my home state of California, the lack of affordability is getting out of hand, especially for Millennials trying to save money. The candidates need to focus on this issue and state what they would do for housing. Your work with NAMB is on a volunteer basis. What can be done to get more mortgage professionals to volunteer with this association? If you are not volunteering, you need to join and speak out. If the leaders in NAMB can spend 10 to 20 hours a week fighting on behalf of the industry, so can everyone else. If anyone says that they have no time to do this, I say, “Shame on you! You have to give back to industry!”

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You are going to become the next president of NAMB. What emotions are you experiencing in advance of this momentous occasion? I’m pretty excited. I have been with the association for the last 15 years, at the state level and then with the national association. This has led me up to an incredible opportunity, and I am especially pleased to see the association thriving year after year following the great downturn. I hope to take what outgoing NAMB President Rocke Andrews did this past year and leverage that. He and I agreed what we wanted to achieve, so there will be no hiccup in the transition.

NAMB allows me to repay my gratitude to an industry that was so great to me.

H A L L

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n September, Fred Kreger will be sworn in as the next president of NAMB—The Association of Mortgage Professionals. Kreger, who is vice president of enterprise production for Roselle, Calif.headquartered American Pacific Mortgage, is no stranger to trade association leadership—he served as president of the California Association of Mortgage Professionals (CAMP) from 2012 to 2013. National Mortgage Professional Magazine recently sat down with Kreger ahead of his new role within the NAMB hierarchy.

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NATIONAL 2016

September 24-26, 2016 Luxor Hotel and Casino l Las Vegas

presented by

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Agenda at a Glance

AMB National 2016, presented by United Wholesale Mortgage (UWM), delivers hands-on knowledge for all attendees, exceptional sessions with some of the leading regulatory officials in the nation, opportunities to expand your business with our many exhibitors and sponsors, and a wide array of special networking opportunities that add a dash of fun to your experience. Note that the Agenda as it stands now is subject to change.

Friday, September 23 1:00 p.m.-4:00 p.m. Exhibitor Setup 6:00 p.m.-8:00 p.m. NAMB Board of Directors Meeting Directors’ Room

Saturday, September 24 9:00 a.m.-Noon NAMB Delegate Council & NAMB Annual Business Meeting Galleria A 9:00 a.m.-11:00 a.m. Exhibitor Setup Noon Exhibit Hall Opens 1:00 p.m.-1:45 p.m. Concurrent Sessions

Compliance Track—Sponsored by FBC mortgage The New Loan Advisor Suite: A Hands-On Workshop Egyptian Room Freddie Mac Loan Advisor Suite launched this summer. Learn how this flexible, integrated, end-to-end technology solution will give you more confidence that you are producing high-quality, low-risk loans. Discover how these intuitive, easy-to-use tools will increase your profit margins and efficiency by lowering your origination costs and reducing your risk of repurchase. Take a walk-through a live demonstration of how the new suite works. Marketing Track—Sponsored by Lending Home Economic Trends in the Industry Nile Room B Presented by Rey Maninang, SVP and National Sales Director, Wholesale at Carrington Mortgage Services Economic trends, for the most part, have been favorable to the housing industry recently, but what does that mean for mortgage originations? Keeping track of these trends and how they affect the industry as a whole, as well as mortgage brokers in their markets, is critical for success. Learn directly from one of the top wholesale lenders in the Industry about what’s happening right now across the country so you can be armed with knowledge about trends that may affect your business.

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Innovation Track—Sponsored by Reverse Mortgage Funding Turn Trash Into Treasure–Producing Profits With Private Lenders Nile Room C Presented by Jeffrey Tesch, Managing Director of RCN Capital Stop throwing money in the trash! With private lending, you have profitable solutions for deals that don’t fit traditional guidelines. Jeffrey Tesch, managing director of RCN Capital and a renowned authority on private lending, will show you how to make money from your most commonly overlooked leads. Learn how private lenders can turn your simple referrals into thousands of extra dollars. Find out how to best present yourself and your borrower to a private lender. See real life scenarios of brokers that have transformed commercial loan inquiries into cash with little to no effort. If you want to master the art of private origination, don’t miss this session! Lending Techniques for Your Valuable Retiree and Senior Customers Nile Room A Presented by Wendy Peel, VP of ReverseVision & Bob Talpas, Account Manager at ReverseVision This session will show you meaningful scenarios around using mortgage lending to impact the financial health of your retiree and senior customers. Concepts that will be illustrated include: Flexible mortgage payments in retirement, extending retirement income to match life expectancy, funding Social Security delay to maximize value and dealing with HELOC balloons or fully amortizing situations on a fixed income. Get a jumpstart on your competition and meet your current customers where they are in life, retain them with new lending opportunities and keep them as life-long clients.

Marketing Track—Sponsored by Lending Home Prepare Your Business for the Future by Getting Into Reverse Nile Room B Presented by Reverse Mortgage Funding Accessing home equity has become increasingly important in today’s world, where traditional sources of retirement income are not always sufficient, as people continue to live longer and spend more time in retirement. Home Equity Conversion Mortgages (HECMs)—commonly known as reverse mortgages—are quickly becoming a necessary building block for retirement funding. If you’re not yet offering reverse mortgages as part of your product mix, you’re missing out on an important and rapidly growing market: Customers age 62 and older. Every day, more than 10,000 Baby Boomers turn 65 years of age. Find out how today’s redesigned reverse mortgage products can help close more loans with this new generation of retirees—with attractive home purchase loans, mortgage refinancing, and HELOC alternative options designed specifically to meet their needs. You’ll learn more about reverse mortgage products, and how turnkey origination platforms make it easy to enter the reverse mortgage business and increase revenue. Compliance Track—Sponsored by FBC Mortgage Examination Survival—Avoiding the Personal Foul Egyptian Room Presented by Bob Niemi, Senior Advisor, Baker Hostetler LLP This session will look at ways to make it through your regulatory exam—including origination, sales management and compliance—focusing on important Do’s and Don’ts, as well as management practices to avoid the big fouls. Bob Niemi is a senior advisor with Baker Hostetler LLP, providing lessons from his unparalleled background and experience. Bob joined Baker after serving as the Deputy Superintendent for the

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Marketing Track—Sponsored by Lending Home Rethinking Mortgage Marketing With Technology Nile Room C Presented by Josh Stech, Founding Partner and Head of Business Development, Lending Home Today’s post-recessionary mortgage market is begging for technological innovation. Traditional banks don’t have the incentive nor flexibility to rise to the challenge. Millennials, the next tidal wave of borrowers, are fed up with the status quo. Nearly half are counting on tech start-ups to overhaul the way banks work and 73 percent would be more excited about a new offering in financial services from Google, Amazon, Apple, PayPal or Square than from their own nationwide bank. They are embracing a financial services overhaul by turning to online marketplace lenders to refinance their credit cards, student and small business loans. The last domino is about the fall: home loans. LendingHome is creating a tech-first mortgage marketplace to offer borrowers, brokers and lenders a transparent, speedy and fair-priced place to do business. Join Josh Stech,

3:00 p.m.-3:45 p.m. Concurrent Sessions Innovation Track—Sponsored by Reverse Mortgage Funding The New Sub-Prime Nile Room A Presented by Tom Hutchens, SVP Sales & Marketing, Angel Oak Mortgage Solutions Tom Hutchens, senior vice president of Sales & Marketing with Angel Oak Mortgage Solutions will discuss the difference between the sub-prime of the crash and the new sub-prime of today. Today’s sub-prime loans are responsible and safe, and comply to all legal regulations. The client’s ability-torepay (ATR) is the most important factor in the underwriting decisions made on today’s subprime loans. As rates continue to increase, alternative lending will become the industry’s new normal.

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2:00 p.m.-2:45 p.m. Concurrent Sessions Industry Leading Strategies to Increase Your Market Share Today! Egyptian Room Presented by Mat Ishbia, President and CEO of United Wholesale Mortgage (UWM) Join Mat Ishbia, president and chief executive officer of United Wholesale Mortgage (UWM), the top wholesale lender in the nation for this high-energy presentation built around championing your success. Mat will share strategies from top originators nationwide that can be put into action and start accelerating your business immediately. Championing the success of independent mortgage professionals and helping you better serve your clients is his top focus.

LendingHome’s founding partner and head of business development, as we take a glimpse into the future of mortgage. Innovation Track—Sponsored by Reverse Mortgage Funding Renovation Lending 101 … And Beyond Nile Room B Presented by Damon Richardson, Renovation Lending Specialist, REMN “Yes, I have heard all about renovation lending, but it’s not applicable to my market or business.” If this has ever gone through your mind, you are missing out on a huge opportunity. During this session, we will discuss why renovation lending is a tremendous tool that will new heights, and how you will be able to incorporate it into your business to: Generate more powerful referrals; strengthen your realtor relationships; cultivate new referral sources; and convert more of your existing opportunities. Damon Richardson, renovation lending specialist at REMN, will cover all of these topics as well as the standard procedural information regarding the FHA 203(k) program, the Fannie Mae HomeStyle program, and the enhancements added to the HomeStyle by HomeReady.

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Ohio Division of Financial Institution for almost four years. In addition to overseeing the non-depository lenders operating in Ohio, Bob served as NMLS Ombudsman for 2014 and 2015 helping industry users, trade associations and regulatory agencies work toward modern and efficient regulation. Bob has been industry advocate for more than 25 years and recognized mortgage sales leader earning multiple president’s club designations. Making the Most of Your Appraisal Management Company Nile Room C Presented by Michael Tedesco, President, Appraisal Nation This program will help you better understand the workings of appraisal management companies and improve your ability to comply with current appraisal regulations. Appraisal issues cannot be solved with a “one size fits all” approach. In fact, appraisal regulations and compliance are much more about safety and soundness than they are about detailed and specific mandates often required by other regulations.

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4:15 p.m.-5:00 p.m. Concurrent Sessions How Fannie Mae Tech Solutions Can Help You Grow Egyptian Room Presented by Christy Moss, Senior Account Manager, Industry Partner Solutions, Fannie Mae Join Christy Moss, senior account manager for Industry Partner Solutions to hear how Fannie Mae’s technology solutions power your entire mortgage business, from underwriting to delivery to servicing. The competitive advantage to grow your business, reduce risk and lower expenses. The session will review several important topics: Enhancements to DU 10.0, including trended credit data and other changes to support today’s lending environment; and Fannie Mae’s technology solutions and how they bring efficiency to the marketplace. Innovation Track—Sponsored by Reverse Mortgage Funding Everything You Wanted to Know About Online Mortgage Origination But Were Afraid to Ask Nile A Room Presented by Adam Stein, President, LoanTek, a division of Bankrate This session is a high level primer covering the essential information you need to know if you’re looking to originate mortgages online. Participants will learn the various methods of online consumer aggregation, what technologies may be required based upon their approach, anticipated timelines for results, and the methods for measure and improving success rates. A fun and interactive class “Everything You Wanted to Know” is guaranteed to provide insights to help you grow your business online. Instructed by Adam Stein, a 20-year veteran of online mortgage origination and president of LoanTek, a division of Bankrate. Marketing Track—Sponsored By Lending Home BYOB–Building Your Origination Business Nile B Room Presented by Steve “That MI Guy” Richman Join Steve “That MI Guy” Richman for his seminar, BYOB–Building Your Origination Business, presented by Franklin American Mortgage Company, a practical approach to knowing what you need to know and doing what you need to do to succeed in today’s market. In this interactive session, you will learn: The differences between being a vendor and a partner and which one works best; transactional and relationship based sales, and when to use which; the number-one most asked question in the country and how to

answer it; three news sources everyone needs to know; three things every customer wants from you and four things every customer wants from your company; nine super cool apps for Realtors and loan officers; and much more! Compliance Track—Sponsored by FBC Mortgage Navigating Upcoming HMDA Reporting Requirements and 1003 (URLA) Changes Nile C Room Presented by FBC Mortgage Join us for an informative session on changes required for the 2015 HMDA Rule implementation, including a complete re-vamp of the 1003 URLA form proposed by the agencies. Who will be required to report based on the 2015 HMDA Rule? What system changes do you need to report the additional data points required? What will the new 1003 look like? Is it really going from four pages to 10plus? How will this impact POS origination? 5:00 p.m.-6:00 p.m. Opening Reception in Exhibit Hall Exhibit Hall Reception Drinks, sponsored by Caliber Home Loans

Sunday, September 25 6:00 a.m. NAMB Legislative Action Fund Golf Tournament Royal Links Golf Club 11:30 a.m. Exhibit Hall Opens 11:30 a.m.-1:00 p.m. Lunch Available in the Exhibit Hall Luncheon ticket necessary for this event. 12:45 p.m.-1:00 p.m. Swearing in of the NAMB 2016-2017 Board 1:00 p.m.-2:00 p.m. Keynote Presentation: David Silberman, Deputy Director, CFPB Egyptian Room Appointed in January 2016 to the second highest post at the Consumer Financial Protection Bureau (CFPB), David Silberman is a critical executive at the crux of this powerful regulatory agency. Join us as he gives NAMB National attendees an insider look at the latest issues before the CFPB. Prior to joining the CFPB in 2010, Silberman served for 12 years as general counsel and executive vice president of Kessler Financial Services, a privately-held company focused on providing advisory services in developing and marketing financial service products through distribution partnerships. Silberman’s involvement with consumer financial services began when, as deputy general counsel of the AFL-CIO, he created and then served as president and chief executive officer of Union Privilege, an arm of the AFL-CIO responsible for sponsoring and overseeing the delivery of financial services to union members. Silberman began his career as a law clerk to Justice Thurgood Marshall and then as a member of the law firm Bredhoff & Kaiser. Mr. Silberman is a graduate of Brandeis University and Harvard Law School. Please note … seating for this session is extremely limited, and provided on a first-come, first-served basis.

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2:00 p.m.-2:45 p.m. Concurrent Sessions Marketing Track—Sponsored by Lending Home How to Succeed in a Volatile Rate Environment Nile Room B Presented by Matthew Ostrander, Chairman and CEO of Parkside Lending LLC It has been many years since we have experienced a material increase in mortgage rates. While higher rates are never inevitable, it is always good to be prepared for higher rates and the impact that could bring to the industry and borrowers alike. However, will that actually happen or will we see feedback loops from a globally connected economy in our new big data world? What forces are driving rates and volatility of those rates? How may you navigate the moves so that your business thrives in any rate environment? What does volatility mean for the consumer and for you? This session will address what to expect if mortgage rates are volatile in 2016, and what mortgage professionals can do to be prepared for such an environment. Industry volume, investor demand, and product development are all expected to adjust with any shift in the yield curve. Get an inside look at how industry leaders are preparing for risks and opportunities that may present themselves in a volatile rate environment.

Peak Performance: How to Increase Your Business by 80 Percent in Eight Weeks Egyptian Room Presented by JMAC Lending, Dr. Kerry Johnson Top mortgage sales producers today are challenged with high rates and clients who want to wait. Yet you now need to improve your sales skills to steadily increase your income. The mortgage business is now about relationships, rapport and trust. According to the MBA, only 17 percent of the loans closed this year were with the last lender. To survive in any market, you have to develop relationships with your best clients and leverage them to new originations. Presented by JMAC Lending, Dr. Kerry Johnson is an international speaker at mortgage conferences around the world. He is also the best-selling author of six books including, Sales Magic, Mastering the

Innovation Track—Sponsored by Reverse Mortgage Funding Success Secrets You Can Profit From Nile Room C Presented by David Schroeder, Vice President, Quicken Loans Mortgage Services The mortgage industry is evolving rapidly through a convergence of technology, legislation, and demographics. The story of evolution is one of adaptation or extinction. In this session, we’ll discuss six critical elements to success in this brave new world–integrity, client obsession, technology, clarity, people and partnership. We’ll be digging in with specific case studies and actionable strategies for immediate implementation. Compliance Track—Sponsored by FBC Mortgage The Evolving Role of Technology: What You Need to Know to Reach the Next Generation of Borrowers Egyptian Room Presented by LDWholesale’s Jeff Walsh, President; Rich Hernandez, Vice President of Business Innovation; and Brittany Hurd, Director of Marketing As technology continues to evolve, so does the way we do business. Today’s tech-savvy lending environment calls for attention to emerging trends such as self-help service, instant communication, and managing digital relationships. Millennials, who make up the largest generation since Baby Boomers, are now of home-buying age. Their spending power is expected to rise significantly in the next 10-20 years and is likely to set the tone for future housing market trends. How will you reach the next generation of homebuyers? Join us to discuss how developing trends in technology impact the mortgage industry. Some of the topics we’ll explore include digital strategies, internet usage, and mobile dependency. This session will also examine the evolution of various marketing channels and business applications through time, and what you can expect to see in the future of mortgage. Close More Loans in 2016 With Risk-Based Pricing Nile Room B Presented by RJ Arnett, Western Regional Vice President, ArchMI In a challenging 2016 marketplace, brokers need to stand out! How will you compete successfully for mortgage business and earn repeat referrals? Being able to offer your clients more affordable mortgages could be the competitive advantage that sets you apart. RJ Arnett, Western Regional vice president at ArchMI, introduces the new RateStar solution and explains how its risk-based pricing model for mortgage insurance (MI) can help you lower the monthly payment for qualifying borrowers.

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Innovation Track—Sponsored by Reverse Mortgage Funding The Keys to Building Successful Technology Partnerships Nile Room C Presented by Tate Kesner, National Sales Supervisor, Calyx Software Technology is an integral part of our day-to-day business activities. So building a strong relationship with your technology providers is essential to continued success. This dialogue, led by Tate Kesner, national sales supervisor with Calyx Software, will examine the key elements needed to build the best partnerships with your technology provider, including longevity, diversity, depth of knowledge, support, educational offerings, flexibility, affordability and capacity to allow you to grow.

3:00 p.m.-3:45 p.m. Concurrent Sessions Marketing Track—Sponsored by Lending Home Moving Forward With Reverse Nile Room A Presented by Tabatha Addison, Vice President of Business Development & Training, American Advisors Group This engaging and interactive session will introduce you to the new reverse mortgage product and highlight why now is the time to “Move Forward With Reverse!”

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Compliance Track—Sponsored by FBC Mortgage What’s in Store for Appraisals–And What Lies Beyond TRID? Nile Room A Presented by Michael Simmons, Senior Vice President, Axis Appraisal Management Between Dodd-Frank, the new AMC rules, and the implementation of TRID, the mortgage industry faces everincreasing challenges. Perhaps the biggest challenge is a troubling lack of clarity from regulators around how to interpret these ground-shifting rules. Spend this session to look at what lenders, regulators and AMCs believe is in store for us all. This will be a great opportunity to ask your own questions about the changing landscape we all face … and hopefully come away with some empowering answers.

Game, and Peak Performance: How to Increase Your Business By 70 Percent in Six Weeks. He writes frequently for many magazines in the mortgage business.

N A M B

P E R S P E C T I V E

4:00 p.m.-4:45 p.m. Concurrent Sessions Marketing Track—Sponsored by Lending Home Adding Renovation Loan Programs to Your Arsenal Nile Room B Presented by Ragen Cunningham, National Renovation Lending Manager, Plaza Home Mortgage It’s time to increase your product offering and marketability with an out-of-the-box mortgage program like renovation lending. In such a competitive marketplace, we are all looking for something that will help our business to stand out. In this engaging session, you will learn how to: Identify the advantages and unique features of these loan programs; understand how these programs fit in the current marketplace; and educate your borrowers on key aspects of the program, so they can make an informed decision and investment. Innovation Track—Sponsored by Reverse Mortgage Funding Mobile Millennials—How to Catch a Unicorn Nile Room A Presented by Ryan Leopold, Co-Founder, Mortgage Mapp Forecasting the future of the mortgage industry may be difficult, but one this seems certain: The millennial buyer will be a driving force for the housing market for years to come! But make no mistake, these customers aren’t going to show up on your doorstep with bank statements, tax returns and a cashier’s check in hand ready to sign. Millennials customers don’t do things the way their baby boomer parents did. You’re going to have to find these buyers, and to do that, you’re going to have to try a few new tactics!

SEPTEMBER 2016 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

32 Compliance Track—Sponsored by FBC Mortgage Three Overlooked Tips That Could Save Your Company Millions in an Audit Nile Room C Presented by David Luna, President, Mortgage Educators and Compliance David Luna, president of Mortgage Educators and Compliance, will deliver this information-packed update on the latest information on trended credit data. The credit agencies are saying trended credit data is the biggest change to the mortgage industry in the last 25 years. Fannie Mae’s DU 10.0 roll out Sept. 26 and will require mandatory use of Trended Data (TD). Questions such as: What is Trended Credit Data and how it will affect your loans will be covered in the update? Is this good for my business/borrowers/buyers? How will a borrower with a 750 credit score possibly be denied due to trended credit data? Do I have to use TD on my credit reports? Will pricing go up? Why is the industry moving in this direction? These and other questions will be covered in this quick paced and highly interactive presentation. This session is presented by Nation’s Direct Mortgage.

Monday, September 26 11:00 a.m.-Noon NAMB Legislative Update Nile Room A Join NAMB’s legislative leadership team for an in-depth look at what legislative and regulatory issues are facing mortgage professionals, and what NAMB is doing to address those concerns. Panelists include NAMB Government Affairs Chair Valerie Saunders; President–Elect Fred Kreger; and NAMB Lobbyist Roy DeLoach.

Separately-Ticketed Courses The courses below require separate, advance registration and payment. Walk-in registration, if available, will incur additional fees. 9:00 a.m.-6:00 p.m. Complete Eight-Hour NMLS Course Egyptian Room Instructor: David Luna, President, Mortgage Educators and Compliance Fulfill your complete eight-hour continuing education requirements for your NMLS license renewal! This is a separately-ticketed bonus offering. Make the most of your time in Vegas by getting all your federally-required CE in addition to a conference full of networking, education, opportunities and prizes. Continuing Education course provided by Mortgage Educators & Compliance. Important note: You must take the entire eight-hour class to qualify for credit. We cannot give partial credit. 9:00 a.m.-Noon Professional Certification: Obtaining CRMS/CMC Status Certification Nile Room C Instructor: Rocke Andrews, CMC, CRMS, President, NAMB Interested in taking the next step in your career? The Certified Residential Mortgage Specialist (CRMS) and the Certified Mortgage Consultant (CMC) certifications recognize those who have achieved the industry’s highest standard of professionalism. Due to popular demand, NAMB is offering this prep course designed to provide an intense learning experience for mortgage professionals who are planning to get certified. This new prep course, will help prepare you for both exams, give you a ‘feel’ for what the actual exams will be like, improve your performance, increase your confidence and align your priorities/preparations for the CRMS and/or CMC. Tuition must be paid in full to guarantee a space. 6:00 p.m. NAMB National Adjourns

4:45 p.m.-5:15 p.m. Exhibit Hall Raffles and prizes will be announced. 6:00 p.m.-9:00 p.m. NAMB Mortgage Professional of the Year Gala Dinner Gala sponsorship by Mountain West Financial and Gala Reception is sponsored by AFR Wholesale. Semi-formal or cocktail attire is requested.

For more information on NAMB National 2016, visit NAMBNational.com.

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n National Mortgage Professional Magazine n SEPTEMBER 2016

N A M B

P E R S P E C T I V E

List of NAMB National 2016 Exhibitors (as of 09/07/16)

PRESENTED BY

SEPTEMBER 2016 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

ALPHABETICAL LISTING Company name

First California Mortgage Company ............................113 Booth #

FirstFunding Inc. ..........................................................355

ACT Appraisal ..............................................................550

Flagstar Bank ..............................................................385

American Advisors Group ............................................520

Franklin American Mortgage Company ........................220

American Financial Resources Inc. ..............................580

Freddie Mac ................................................................102

Angel Oak Mortgage Solutions LLC ............................100

Freedom Mortgage ......................................................475

Appraisal Nation ..........................................................285

Homeward Residential Inc. ..........................................450

Arch MI ........................................................................225

Impac Mortgage Corporationâ&#x20AC;&#x201C;Wholesale ....................370

Avantus........................................................................205

JMAC Lending ............................................................260

Axis Appraisal Management Solutions ........................503

Lakeview Wholesale ....................................................480

Banc Home Loans ......................................................570

Land Home Financial Services, Inc. ............................485

Best Rate Referrals ......................................................460

LDWholesale ................................................................208

Brokers Compliance Group..........................................510

LendingHome ..............................................................425

Caliber Home Loans ....................................................201

Liberty Home Equity Solutions Inc. ..............................230

CalyxSoftware..............................................................420

Loan Simple ................................................................440

CardTapp ....................................................................210

LoanTek, a division of Bankrate ..................................203

Carrington Mortgage Services ....................................240

MB Financial Bank ......................................................465

Citadel Servicing Corporation ......................................345

MobilityRE ..................................................................105

CMG Financial ............................................................350

Mountain West ............................................................325

Colony American Finance ............................................330

Mortgage Educators ....................................................108

Fannie Mae ..................................................................435

National Mortgage Professional Magazine ..................100

FBC Mortgage Wholesale/Correspondent....................103

Nations Direct Mortgage ..............................................373

N A M B

P E R S P E C T I V E

New York Community Bank ........................................365

240 ....................................Carrington Mortgage Services

Pacific Union Financial LLC ........................................560

250..............................................................RapidAdvance

Parkside Lending LLC..................................................340

260 ............................................................JMAC Lending

Plaza Home Mortgage Inc. ..........................................320

265 ......................................................ReverseVision Inc.

Priority Search Services ..............................................375

280 ........................................United Wholesale Mortgage

PRMG ..........................................................................207

285 ..........................................................Appraisal Nation

Quicken Loans Mortgage Services ..............................540

320 ..........................................Plaza Home Mortgage Inc.

Radian ........................................................................360

325 ............................................................Mountain West

RapidAdvance..............................................................250

330 ............................................Colony American Finance

RCN Capital ................................................................335

335 ................................................................RCN Capital

REMN ..........................................................................107

340..................................................Parkside Lending LLC

Reverse Mortgage Funding LLC ..................................111

345 ......................................Citadel Servicing Corporation

Reverse Mortgage Solutions ........................................530

350 ............................................................CMG Financial

ReverseVision Inc. ......................................................265

355 ..........................................................FirstFunding Inc.

Scotsman Guide Media................................................507

360 ........................................................................Radian

Southwest Bank ..........................................................109

365 ........................................New York Community Bank

Stearns Lending ..........................................................501

370 ....................Impac Mortgage Corporationâ&#x20AC;&#x201C;Wholesale

U.S. Bank Home Mortgage ..........................................456

373 ..............................................Nations Direct Mortgage

Best Rate Referrals ......................................................460

375 ..............................................Priority Search Services

United Mortgage Corporation ......................................505

385 ..............................................................Flagstar Bank

United Wholesale Mortgage ........................................280

420..............................................................CalyxSoftware

425 ..............................................................LendingHome Booth #

435 ..................................................................Fannie Mae 440 ................................................................Loan Simple

100 ............................Angel Oak Mortgage Solutions LLC

450 ..........................................Homeward Residential Inc.

100 ..................National Mortgage Professional Magazine

456 ..........................................U.S. Bank Home Mortgage

102 ................................................................Freddie Mac

460 ......................................................Best Rate Referrals

103....................FBC Mortgage Wholesale/Correspondent

465 ......................................................MB Financial Bank

105 ..................................................................MobilityRE

475 ......................................................Freedom Mortgage

107 ..........................................................................REMN

480 ....................................................Lakeview Wholesale

108 ....................................................Mortgage Educators

485 ..............................Land Home Financial Services Inc.

109 ..........................................................Southwest Bank

501 ..........................................................Stearns Lending

111 ..................................Reverse Mortgage Funding LLC

503 ........................Axis Appraisal Management Solutions

113 ............................First California Mortgage Company

505 ......................................United Mortgage Corporation

201 ....................................................Caliber Home Loans

507................................................Scotsman Guide Media

203 ..................................LoanTek, a division of Bankrate

510..........................................Brokers Compliance Group

205........................................................................Avantus

520 ............................................American Advisors Group

207 ..........................................................................PRMG

530 ........................................Reverse Mortgage Solutions

208 ................................................................LDWholesale

540 ..............................Quicken Loans Mortgage Services

210 ....................................................................CardTapp

550 ..............................................................ACT Appraisal

220 ........................Franklin American Mortgage Company

560 ........................................Pacific Union Financial LLC

225 ........................................................................Arch MI

570 ......................................................Banc Home Loans

230 ..............................Liberty Home Equity Solutions Inc.

580 ..............................American Financial Resources Inc.

For more information on NAMB National 2016, visit NAMBNational.com.

n National Mortgage Professional Magazine n SEPTEMBER 2016

Company name

NationalMortgageProfessional.com

NUMERICAL LISTING

Military Lending Act Regulations Effective in October

nmp news flash

continued from page 16

FHFA Previews New High LTV Refi Offering

By Gavin T. Ales

APRIL 2016 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

ffective Oct. 3, 2016, the Department of Defense revised regulations pertaining to the Military Lending Act (MLA) to align its applicability with most consumer credit as defined in Regulation Z, which implements the Truth-in-Lending Act (TILA). With this revision, the MLA regulations now apply to consumer credit, both closed- and open-end – such as consumer loans and credit cards. Specifically, the MLA regulations will apply to credit offered or extended to a covered borrower primarily for personal, family, or household purposes, and that is (i) subject to a finance charge, or (ii) payable by a written agreement in more than four installments. Both the MLA and the revised regulations maintain a general exclusion for “residential mortgages” from the definition of consumer credit, which is defined in the revised regulation as “any credit transaction secured by an interest in a dwelling, including a transaction to finance the purchase or initial construction of the dwelling, any refinance transaction, home equity loan or line of credit, or reverse mortgage.” However, the definition of “residential mortgages” does not include loans secured by vacant real property (that is not intended to construct a dwelling, which is excluded). Accordingly, while most residential mortgage lending falls under the MLA regulations’ definition of “residential mortgages,” and thus would be excluded from the MLA, any transaction secured by vacant land is still covered under the MLA regulations. (Note: some industry groups have proposed to the DOD a solution by expanding the definition of residential mortgages to exclude any “credit transaction secured by an interest in real property or a dwelling …”) Coverage under the MLA requirements for loans secured by vacant land requires lenders to have in place a program for identifying covered borrowers (i.e. members of the armed forces serving on active duty or Active Guard or Reserve duty, or their dependents), limitation of a covered loan’s Military APR (MAPR) to a maximum of 36 percent and additional disclosure requirements to the covered borrower. The MAPR uses the APR calculation provided under Regulation Z, but with specific inclusions of certain types of charges and provides that some exceptions for inclusion in the APR calculation provided by Regulation Z are inapplicable to the MAPR calculation. For loans governed by the MLA regulations, lenders must also provide the covered borrower a Statement of the MAPR and a Payment Schedule outlining the payment obligations of the borrower.

Gavin T. Ales is chief compliance officer with Torrance, Calif.-based DocMagic Inc. He may be reached by phone at (800) 649-1362, ext. 6446 or e-mail Gavin@DocMagic.com.

SPONSORED EDITORIAL

The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac are readying a new refinance offering aimed at borrowers with high loan-to-value (LTV) ratios. According to the FHFA, this new streamlined refinance offering is more targeted than the Home Affordable Refinance Program (HARP), with no eligibility cut-off dates connected and the ability to use the program more than once. Borrowers with existing HARP loans are not eligible for the new offering unless they have refinanced out of HARP using one of the traditional refinance products offered by Fannie Mae and Freddie Mac. The refinance offering will not be available to borrowers until October 2017. The FHFA stated it is “creating a bridge” to this new offering by extending HARP through Sept. 30, 2017. “Providing a sustainable refinance opportunity for high LTV borrowers who have demonstrated responsibility by remaining current on their mortgage makes financial sense both for borrowers and for the GSEs,” said FHFA Director Mel Watt. “This new offering will give borrowers the opportunity to refinance when rates are low, making their mortgages more affordable and thus reducing credit risk exposure for Fannie Mae and Freddie Mac.” CFPB Acknowledges Workplace Discrimination

After years of ignoring public charges of workplace discrimination, the Consumer Financial Protection Bureau (CFPB) made a rare admission that it discriminated against one of its staff. According to a Daily Caller report, the CFPB’s Office of Civil Rights and Office of Equal Opportunity and Fairness sent a notice to the U.S. Consumer Coalition, an advocacy group, stating that the bureau “violated

the Rehabilitation Act when it failed to provide an employee with an effective accommodation for disability-related limitations, when it discouraged the employees from requesting leave as a type of reasonable accommodation, when it gave the employee a negative midyear performance evaluation that referenced the employee’s inability to do job duties because of the employee’s disability, and when it penalized the employee for needing and using disabilityrelated leave. Additionally, the Bureau violated Title VII of the Civil Rights Act of 1964 when it retaliated against the employee because the employee spoke out against discrimination.” The CFPB has previously been targeted by employees that complained of racial and gender discrimination, and these charges have been the subject of congressional hearings, a Government Accountability Office report and unflattering media coverage. However, the agency has never previously admitted any such problem existed, and the CFPB Web site avoided any mention of the subject. In making the CFPB’s admission public, U.S. Consumer Coalition President Brian J. Wise welcomed the statement as the beginning of internal change in how the CFPB operates. “This finding is a huge step forward in reforming the CFPB and holding them accountable for their actions,” said Wise. “This shows they have no respect for their employees and confirms the dozens of reports of harassment, discrimination, and retaliation that we have received from current and former CFPB employees. In order for the CFPB to accomplish its original mandate from the DoddFrank Act, and restore credibility to this agency, we must see a change in leadership, structure, and culture at the CFPB, not with the employees, but with the management.” MBA Chief Wavers on Support of Mortgage Interest Deduction

The head of the mortgage industry’s largest trade group has suggested that the mortgage interest deduction could be

specialist into a fully-integrated provider of capital markets services and software. MCT’s recently expanded office overlooks PetCo Park. The company also has offices in Flower Mound, Texas and Bala Cynwyd, Penn. MCT employs more than 80 people and continues to grow. “We are extremely honored to have again been recognized by the San Diego Business Journal as one of the Best Places to Work in San Diego,” said Curtis Richins, president of MCT. “Winning this award for the fifth year in a row

speaks volumes about MCT’s corporate culture and the many programs and benefits we offer our employees. The entire management team at MCT is extremely appreciative of our team’s hard work, passion and dedication.” The SDBJ puts companies that applied for the award through an extensive evaluation process that includes a detailed analysis of company workplace policies and practices along with a comprehensive employee survey. The combined scores determined the top companies and the final rankings.

CoesterVMS Donates Clean Water to Louisiana Flood Victims

CoesterVMS, a national appraisal management company (AMC), has donated 144 cases of water to help the victims of the flooding in Louisiana. “There are so many people in need after the devastation that continued on page 60

MCT Named to “Best Places to Work List” for the Fifth Consecutive Year

NationalMortgageProfessional.com

Mortgage Capital Trading Inc. (MCT) has announced that it has been named Best Places to Work by the San Diego Business Journal (SDBJ) for the fifth straight year. MCT was ranked number 13 in the medium-sized company category (50-249 U.S. employees) and is one of only 100 companies being recognized in all four categories. The award is designed to identify, recognize and honor the best places of employment in San Diego that benefit the county’s economy, workforce and local businesses. Founded in 2001 and headquartered in downtown San Diego, MCT has grown from a pipeline hedging services

n National Mortgage Professional Magazine n SEPTEMBER 2016

jettisoned as part of a larger reform of the U.S. tax code. In an interview this week on CNBC’s “Squawk Box,” Mortgage Bankers Association (MBA) President and CEO David H. Stevens noted that this longstanding feature of the tax code could easily be removed because it did not benefit all homeowners. “We’re not religiously wed to the mortgage interest deduction,” Stevens said. “Entry-level homebuyers typically don’t deduct, don’t itemize. And wealthy borrowers won’t really care. [But] everybody needs to understand the American that benefits from the mortgage interest deduction is the middleclass homebuyer.” Stevens, who had previously served as President Obama’s commissioner of the Federal Housing Administration before joining the MBA, declined to offer support for any presidential candidate during the interview. He also insisted the housing market was not in a bubble, although he admitted that an “affordability crisis” existed, due in large part to rising home prices. “Home prices rising have to do with what’s being built and what’s being sold, “ he said. “We’re doing really well providing housing to wealthier Americans. That’s the market that’s most active. The reason the average home price is rising is we’re not building enough entry-level housing stock to support this younger generation of homebuyers coming into the market.”

It’s a Blizzard The

Mortgage

Godfather

henever it snows, my mind forces me to remember my father. He had always said, and repeated it over and over, “If it’s going to snow, I want it to be so much that nothing moves, noone can go anywhere.” Sometimes, he got his wish. When the Heavens opened and we got almost two feet, he was in his glory. Now, this is not a weather report, because you have all seen enough of them on TV. But always hidden in his conversations, my dad was trying to tell me something, something that he practiced, something that he believed, and taught me to believe. If you’re going to do it, do it right or don’t even start. It pays to do it right the first time. Measure twice, cut once. Fixing things, going back to do over what you have done incorrectly, takes an enormous amount of additional wasteful energy. Dad also taught me a work ethic, and then Bill Schor taught me how to apply this work ethic to the mortgage business.

A hot shot college freshman On a hot May night in 1960, I walked into my home to find my parents playing pinochle with our neighbors. One of my friends had just driven me home from college. My summer vacation had begun. The previous week had been filled with nights of cramming, coffee, diet pills, and any other way we could figure out how to stay up. As I walked in the door, dad said, “I’ll wake you up at four, so you better get to bed right away and have a good night sleep.” “Dad,” I protested in my angriest voice, “I just finished a terrible week, can’t I have just one day to recover?” “Four o’clock. Be ready.” Not a request, an order. And at four o’clock, he came in my room and woke me up to go to work with him to install insulation in the attic of a house he was building. The job needed to be done before the sun got too hot and caused the temperature in the attic to rise

ard!!!

BY RALPH LOVUOLO SR.

“If you’re going to do it, do it right or don’t even start. It pays to do it right the first time.” above 200 degrees. I finished at about 10, and then went home to change and be at the office of the mortgage company he owned. My new business In 1983, when I started my own mortgage company, working out of my living room, life was like spending time shopping in a store with all the money I needed, and I could buy anything I wanted. Every day was an adventure into a fun arcade. Then I met Danny, a raw, adventurous young man who had recently graduated from college, and more recently fired from his job, selling penny stocks to widows in the Midwest. He had hated the job, and I suspect that is why he did not do well. When I met him, having been referred by a mutual friend, he said maybe he could have some fun helping me in my new business and make some money too. I welcomed him with arms open so wide, you would have thought the Grand Canyon had been rediscovered. What he needed was training, and what I loved training more than anything else. He was like putty in my hands. If I asked him to do something a certain way, he did it without asking a question. He followed my every move, mirrored my every action, and made more than $100,000 in his first year. He would do anything I asked, except for one thing. He wouldn’t work in the rain or snow. It was my biggest disappointment. It was the one thing that I treasured most about my work habits; my

ability to work when others did not. Danny refused. I tried every bribe, reasoned with him for hours on end, and explained the logic of being available when your competitors are not available. Eventually, I tried demanding that he get out in the rain. Danny still refused. Danny’s new business When Danny left me after about three years to start his own business, I reminded him of his biggest failure. He laughed and told me it wouldn’t matter. My response was somewhere along the line of letting him know that there wouldn’t be anyone to cover for him on his “meltdown” days. He called me recently to let me know how things are doing in his business. After some talk about family and general business discussions, he dropped the other shoe. “I’ve been trying one of your ideas recently,” he said. He bubbled with enthusiasm as he relayed a story about working on holidays and weekends and on rainy days. “It’s amazing how they love to see you on certain off days. They greet you with a certain prodigal son form of welcome. It fills me with a sense of accomplishment, even before I start to talk,” he said. Leo Solomon, a real estate broker in Pennsauken, N.J. always loved it when I used to show up on snow days. He always told me how special he felt, and it reinforced our business relationship.

Ralph LoVuolo Sr. has more than 50 years in the mortgage Industry, with the last 30 as a coach. He is past president and founder of the New York Association of Mortgage Brokers, and long-time member of NAMB— The Association of Mortgage Professionals. He can be reached by phone at (917) 576-1230 or e-mail Ralph@MortgageMotivator.com.

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Ralph LoVuolo 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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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.

Angel Oak Announces $132 Million-Plus Securitization of Non-Agency Loans

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the loans we feel fit best within securitization parameters and meet investor requirements.” AOMT 2016-1 issued approximately $119.38 million of senior classes of certificates and approximately $13.26 million of Angel Oak Capital Advisors has subordinate classes of certificates announced that it has completed for a total deal size of AOMT 2016-1, a $132.65 million approximately $132.65 million. securitization primarily backed by “There is a stark difference non-Qualified Mortgages (non-QM). between the collateral in our nonThis securitization marks the prime loans today and the subsecond offering of its kind by Angel prime products issued prior to the Oak Capital and represents the financial crisis,” said John Hsu, firm’s commitment to revitalizing Angel Oak’s head of capital the non-QM mortgage market, markets. “Today’s loans adhere to which has been dormant for nearly the ‘ability-to-repay’ (ATR) eight years. regulation and require significant Angel Oak Capital’s two downpayment.” securitizations are primarily backed by mortgages originated through D+H Adds More Than 100 the firm’s two affiliate residential DocMagic Clients to its mortgage lenders—Angel Oak Mortgagebot Solution Mortgage Solutions LLC (wholesale) and Angel Oak Home Loans LLC (retail). AOMT 2016-1 also included collateral from another affiliated lender, Angel Oak DH Corporation has announced Prime Bridge LLC. In addition to that it has brought on more than sourcing the collateral through its 100 new lenders to its trusted affiliates, Angel Oak MortgagebotLOS solution, after Capital, through one of its signing a reseller agreement with accounts, has retained five percent DocMagic Inc. DocMagic is a of the offered securities, to satisfy provider of fully-compliant loan risk retention requirements of the document preparation, compliance, Dodd-Frank Act, and 100 percent eSign and eDelivery solutions. of the remaining classes of The agreement was signed to subordinate securities—aligning offer clients a seamless integration interests of all parties. between DocMagic and D+H’s “Angel Oak’s mortgage lenders MortgagebotLOS. This mirrors a have seen a steady increase in broader industry trend among non-QM mortgage origination financial institutions looking for volume since the inception of these comprehensive, end-to-end programs,” said Angel Oak CEO solutions that handle all of their and CIO Sreeni Prabhu. “Our lending needs. lending platforms are on pace to originate approximately 3,100 loans totaling approximately $800 million by year end. Angel Oak Capital will continue to selectively purchase

“We are happy to see that within just a few months, our partnership with DocMagic has been a success, and has kept D+H ahead of the trend in end-to-end solutions,” said Steve Hoke, head of Lending, Retail & Product Management for Mortgagebot. “DocMagic’s ability to introduce, train and support so many new clients in such a short period of time speaks volumes about the company and its products. We are thrilled by the great reception to this joint solution, and we expect it to continue driving growth going forward.” DocMagic provides an extensive set of reps and warranties on all of its calculations, documents and data, which gives lenders peace of mind that they are fully compliant along with an actual insurancebacked policy. “D+H has been a very hands-on and responsive partner to work with while jointly supporting our mutual clients,” said Dominic Iannitti, president and CEO of DocMagic. “Like DocMagic, D+H places a heavy emphasis on compliance, technology and customer service. This strong foundation will no doubt lead to more mutual clients enjoying the exceptional service levels that facilitate customer retention.” Freedom Mortgage Completes Sterling Acquisition

Freedom Mortgage Corporation

announced the completion of its acquisition of the residential mortgage origination operations of Sterling National Bank, the principal subsidiary of Sterling Bancorp. The Mount Laurel, N.J.-based Freedom will now handle all residential mortgage inquiries from the customers at Sterling National Bank. The acquisition will also expand Freedom’s presence into the greater New York City and Hudson Valley markets that Sterling serves. “We look forward to carrying on the tradition of excellence that has been a Sterling National Bank hallmark since 1888,” said Freedom Mortgage CEO Stanley C. Middleman. “The entire region will benefit from the fast response, personalized service and complete range of home mortgages that Freedom offers throughout the United States. We are delighted to have this excellent group of dedicated professionals on the Freedom Mortgage team.” PRMI Adds New Bay Area Location

The San Francisco Division of Primary Residential Mortgage Inc. (PRMI) has expanded into Marin County, Calif. PRMI’s Bay Area Division Managers Michael Koran and Dane Moler will increase their area of responsibility to include overseeing the new office location in Larkspur, Calif. PRMI’s San Francisco Division is on pace to set new origination volume records again this year after funding a record-setting $91.9 million in loans in 2015. Since opening in 2008, the PRMI San

Francisco Division has helped more than 1,600 people attain their dream of homeownership. “We’re proud of the rapid growth we’ve experienced locally. PRMI is quickly becoming a household name in California and the Bay Area and we look forward to providing the people of Marin County with an independent, locally-owned alternative for home loans,” said Koran. Yelp lists Koran among the “Top 5 Loan Originators in the San Francisco area.” A native of California, Koran attended the University of California at Berkeley and the Haas School of Business. He is a 12-year veteran of the mortgage industry, and has served as VP of sales as well as a division manager. Moler is listed as a top loan originator by National Mortgage News, and has been in the San Francisco mortgage industry for more than a decade. Moler attended the University of California, Berkeley as well, with a degree in political economics and has earned multiple management and origination honors throughout his real estate lending career.

data, and billions of recorded documents, will offer our customers unmatched quality, coverage and operational flexibility.” Indecomm Global Services Document Management Group Hits the 900-County Mark

Indecomm Global Services has announced that its eRecording services are being utilized in more than 900 counties nationwide,

putting Indecomm within striking distance of its goal of reaching 70 percent of the U.S. population with eRecording services. The entire market for eRecording is more than 1,500 jurisdictions, which represents 76 percent of the U.S. population. Indecomm’s eRecording growth has been fueled by its eRecording platform InteleDoc Direct (IDD) with Recopedia, Indecomm’s national recording toolkit, and the acceptance of eRecording as a best practice for improved efficiencies and lower costs. Indecomm offers title companies and lenders the ability to submit

documents to counties through its eRecording or mail-away services. eRecording is available as either full-service or through SaaS access for the clients. “As the public sector powers ahead with the adoption of electronic recording technologies, Indecomm stands at the forefront of this trend through innovation,” said Rajan Nair, CEO of Financial Services Division, Indecomm Global Services. “Ever more lenders and title companies are embracing Indecomm’s eRecording platform enhanced by Recopedia.” continued on page 48

First American Acquires RedVision Systems 43

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First American Financial Corporation has announced that it has acquitted RedVision Systems Inc., a national provider of title and real property research. RedVision is best known for its proprietary technology, including the TitleVision2 production platform, TitleVision2 and the Nova title research and production software. Under the terms of the acquisition, RedVision will become part of First American’s Data and Mortgage Solutions division while operating as a business unit under its brand and its management team. CEO Brian Twibell will remain on board to lead the business. “We’re excited to soon welcome RedVision to the First American family of companies. RedVision’s data, technology and services complement First American’s existing title search and title evidence production and will further expand First American’s industry-leading position in title and property data,” said George Livermore, executive vice president of First American’s Data and Mortgage Solutions division. “RedVision’s nationwide title production platform, coupled with First American’s title and property

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What Olympians Can Teach Mortgage Pros About Reaching Their Goals By Bubba Mills

“I’ve failed over and over and over again in my life. And that is why I succeed.”—Michael Jordan, Gold Medalist in basketball in 1992 and 1984

l Olympians know there is always more to learn. This is a nice segue from feedback. Olympians are obsessed with learning. They not only crave their coaches’ feedback, they then spend days, weeks and months on their own practicing, studying, watching competitors–doing anything to learn more about how they can be even better than the best. Readjust your desire to learn all you can about your profession. l Olympians think big. Consider this … Olympians wouldn’t be where they are without thinking big. In their case, thinking big means becoming the best in the world in their sport. That’s thinking big. What about you? Please don’t tell me you’re satisfied with just being average, normal or ordinary. True, none of those are actual four-letter words– but in my book–they’re some of the nastiest words in the English language. Commit to thinking big from this day forward. It doesn’t have to be dramatic. Remember, every single Olympian began as a regular person. But with small steps forward every day, they made it to the top of their individual sports. And when you apply lessons from Olympians, you can too become the top mortgage professional in your market or even the country!

Bubba Mills is CEO of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 957-8353 or visit CorcoranCoaching.com.

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l Olympians thrive on facing the toughest possible adversaries. When runners are lined up on their starting blocks, they know their competition is as strong as it gets–and they love that. That’s what makes them better. Every day they take on what frightens them most and then they overcome it. Learn

l Olympians seek and use feedback to gauge progress. In a word, they’re coachable. Study after study of excellence in sports has confirmed that an essential element of improvement is feedback. Something else we didn’t see when we watched the Olympics was all the hours and hours of coaches giving their athletes constructive criticism to their performances. Think about it: You cannot fix what you don’t know is wrong. And if you can’t do that, you’re stuck in a revolving door of mediocrity. Get a coach.

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hose are some strange words coming from arguably one of the best athletes the world has ever known. But get this, Jordan also adds: “I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. Twentysix times, I’ve been trusted to take the game winning shot and missed.” Congratulations … you’re just the second paragraph in and you’re about to learn one of the most important lessons of your career: Success is a product of failure. It’s a wonderful message to ponder in the wake of the 2016 Olympic Games. Oh to be sure, we all witnessed stunning, physical feats and unmatched marvels. But what we didn’t see holds the secret to transforming your life in the mortgage business: We didn’t see all the toil, sweat, tears, misses, mistakes, and the utter and complete failures all the athletes have endured over the years–and in some cases– decades. And if you ask them, top producers in the mortgage industry will tell you they’ve left behind a long and wide path of failures, too. So that’s lesson number one from the Olympic Games: Success is born from failure. Never be afraid to fail. Another Gold Medalist, the late and great Muhammad Ali, once said, “He who is not courageous enough to take risks will accomplish nothing in life.” Take risks. If you fail, it only means you’ve moved closer to success. So what else you can you learn from Olympians? Here are what I believe to be their best lessons:

who’s the best mortgage pro in your area–and then vow to be better.

Lykken on Leadership

How to Build an Unstoppable Leadership Team BY DAVID LYKKEN

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reat leadership is often the deciding factor in whether an organization achieves extraordinary success or miserable failure. But all too often when we think of leadership, we hold too narrow a definition of what we mean. We may know the CEOs of several organizations. We may know the head coaches of our favorite sports teams. We may know the presidents, prime ministers and other world leaders in many countries. But, do we know the CFO or COO of those same organizations? Do we know the organization’s vice president of sales? And what about sports teams—do we know the assistant coaches, offensive coaches and defensive coaches? We know the world leaders, but do we know their support staff—the ministers of the various departments that organize their respective countries? While the single leader at the top of large businesses, sports franchises, and countries may have name recognition, most of them will tell you how largely they depend on the people working with them to manage their respective enterprises. Great leadership does indeed make the difference, but that doesn’t just mean the leader at the top—it means the entire leadership team. If your organization is going to flourish, you need solid leadership

“Leaders cannot truly lead unless they are allowed to make their own decisions for their teams.” positioned in every department. In this article, I would like to discuss some tips for building an unstoppable leadership team. Keep it small When you get too many people with strong opinions trying to move in the same direction, it can get messy. Your core leadership team should be small enough to allow everyone a voice and yet still permit you to be nimble in your decision-making. If you’re in an hour-long meeting and everyone doesn’t get a chance to talk, you’ve probably got too many people on your leadership team. Give them autonomy Leaders cannot truly lead unless they are allowed to make their own decisions for their teams. If you are at the top of your organization and you are trying to build a strong leadership team, you should give each leader the flexibility to run his or her own department. If they are worthy of the position they’re in, they’ll know their teams far better than you do. Empower them to make decisions for their own teams, and you’ll get much better results.

Maintain shared values and goals You don’t want to micromanage your leadership team—you want to empower them to execute in the way that they think best for their departments. That’s where autonomy comes in. That being said, there is a face of leadership in which you do want to control the behavior of your leadership team—and that is in how well they adhere to your mission. How they go about fulfilling the mission is one thing but, if you don’t have every member of your team united under the same vision, your team will be pulled in each and every direction. You’ve got to make sure each member of your leadership team is striving for the same thing. You’ve got to have shared values you are striving to keep and goals you are striving to reach. Foster an environment of trust It really doesn’t matter how competent your leaders are as individuals; if they don’t trust each other, they will not be able to function as a team. Now, there are a few components to this. First, there’s accountability. You

have to make sure each member of your team has the competence and willingness to live up to his or her expectations. If any single member of your leadership team cannot be relied upon to get the job done, the entire team will suffer. So, your leadership team first and foremost must be dependable. The second component of trust is vulnerability. Basically, this means that the members of your leadership must be comfortable with one another. When leaders on a team put up walls, important information does not get communicated, factions form, and misunderstandings abound. You have to have a team that is open and honest in communication. The leaders on your team must be willing to get “naked,” to strip away all of their defenses and reveal themselves for who they really are. Unless this happens, you cannot really have authentic trust. Meet often In some business circles, meetings are considered to be the great enemies of productivity. They are considered bureaucratic formalities that waste time that

could be better spent getting things done. When you’re talking about work, the thinking goes, you aren’t actually working. This may be true in certain contexts but, when it comes to your leadership team, meeting as often as possible is absolutely essential. In a way, this all goes back to trust. It’s fairly common knowledge that the more time you spend with people, the more you come to trust them. If the members of your leadership team only spend time in their own departments and never meet with other leaders, how can they really begin to trust one another? Another important reasons that leaders should continually meet together, though, is interdepartmental communication. Misunderstandings are all too easy in the workplace. If your leadership team seldom gets together to discuss what’s going on in the business, how are the supposed to know what’s going on in each department? Meeting together on a regular basis gives the team members the opportunity to understand the business from one another’s perspective.

have worked in your organization for years not only know your organization well, but they have also demonstrated loyalty and you can trust that they will likely stick around. If you must hire for your leadership team from outside your organization, try to seek out candidates who have been with their previous employers for a reasonable length of time. Leadership is all about the long game; you need people on your team who can stick it out.

strong leadership team, but this should be a good start. The important thing is to remember that there really is no such thing as the “self-made man” (or woman). Every leader relies on

There are many other important factors in building a

David Lykken, a 43-year veteran of the mortgage industry, is president of Transformational Mortgage Solutions (TMS), a management consulting firm that provides transformative business strategies to owners and “C-Level” executives via consulting, executive coaching and various communications strategies. He is a frequent guest on FOX Business News and hosts his own weekly podcast called “Lykken on Lending” heard Monday’s at 1:00 p.m. ET at LykkenOnLending.com. David’s phone number is (512) 759-0999 and his e-mail is David@TMS-Advisors.com.

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Loan amounts from $250k to $1 Million

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Share resources and insights It’s important that the members of your leadership team view themselves more collaboratively than they do competitively. When they see one another as threats, they will conceal information from each other. Then, because each department is doing its own work in isolation, you end up duplicating a lot of expenses and procedures. When the members of your team see themselves as an actual team, though, they will share resources and insights with one another. When this happens, you will find redundancies in your organization that you can eliminate and your organization will be made better off all around. The members of your team must be of the mindset that if it’s better for the organization, then it’s better for them as well. Value commitment One final thing to call attention to is the importance of placing committed individuals on your leadership team. You want to have people in place who have demonstrated a long-term dedication to your organization and its values. Otherwise, you will constantly find yourself having to retrain people and backfill the implementation of strategic objectives. When you can, promote from within. People who

others to support their success. As a leader, you are only as good as those with whom you surround yourself. Build a great leadership team, and you will truly be unstoppable.

New Fusion Marketing Approaches

he age of Internet and live transfer generated leads has become saturated. Mortgage professionals are being told they are buying one type of lead and then received something completely different. Since its inception in 2011, the CFPB has been cleaning house in the financial sector with a keen eye on the mortgage industry. The Internet is the only place they have not conquered. With predatory lending gone, along with those who practiced it, there has been major growth in new marketing methods. The term “marketing” has become almost synonymous with compliance. This doesn’t mean you have to stay away from it. In fact, it’s been one of the main reasons marketing efforts are working so well today. With so many hoops to jump through, a lot of people are simply staying away from marketing all together. New marketing campaigns are combining traditional marketing methods like online marketing and direct mail integrating online additions to them. These new hybrid campaigns allow recipients to respond by phone, mail, e-mail or online. Combining the old with the new, these methods are producing response rates that are higher than we’ve seen since 2010! With millions of people performing millions of searches each day to find content on the Internet, it makes sense that marketers want their products to be found by potential consumers.

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TagQuest customer spotlight Each month, we talk with our clients to see how their campaigns are performing. Here’s what heard from Alfred Valentine, a manager and Jim Cefaratt, a senior loan officer, with Acre Mortgage: l Product: USDA Purchase Leads l First month results: Sixty leads with 13 applications (six closed and eight more qualified loans in process) l Response rate: Twenty-three percent projected closing ratio Highlights of the campaign that work well for you TagQuest has the knowledge and tools to help you grow your business. The CRM is the best I’ve ever seen, limiting wasted time and lost leads. TagQuest is not looking out for their own best interest, they focus on our growth and bottom line as well. Others would benefit from their attention to detail and concern for providing the best possible marketing strategies. Highlights of the campaign that work well for you “The beauty of this program/campaign is that everything comes directly to you via e-mail,” said Cefaratt. “As soon as a client clicks on to our site and fills out the very brief questionnaire of interest, it gets sent directly to your e-mail so you can access their information wherever you are. With this site unlike many others I have dealt with the questionnaire is a few small questions, instead of a quicken questionnaire which is lengthy and time consuming. The benefit for me and most all mortgage professionals is that you can get on the phone with the client quickly and answer whatever questions they might have faster than others and as we all know the first one in the door usually gets the business. TagQuest has had an incredible impact on my business, and I look forward to the opportunities the future has to offer us.”

TagQuest Inc. is a full-service marketing firm specializing in marketing for the mortgage industry. Call (888) 717-8980 or visit www.tagquest.com.

IMAGINE • INNOVATE • SUCCEED SPONSORED EDITORIAL

heard on the street Recopedia provides county recording checklists that can help reduce rejects and gives visibility into recording fee discrepancies, utilizing its up-to-date fee calculator. “We at Indecomm are extremely proud of our Document Management Group as they lead the vanguard of technology adoption in the public sector. This serves our clients and the general public, offering value added tools and more secure recording,” said Naresh Ponnapa, Group CEO and managing director of Indecomm Global Services. “Indecomm’s efforts continue to raise the bar on technological excellence and customer service.” AIG Sells UGC for $3.4B

American International Group Inc. (AIG) has announced that it will sell its 100 percent interest in the private mortgage insurance company United Guaranty Corporation (UGC) to Arch Capital Group Ltd., a Bermuda-based writer of mortgage insurance and specialty lines of property and casualty insurance and reinsurance, for $3.4 billion. As part of this transaction, AIG will retain all mortgage insurance business ceded under an existing 50 percent quota share agreement between UGC and AIG subsidiaries for business originated from 2014 through 2016. In announcing the sale, AIG President and CEO Peter Hancock declared it to be part of his effort to reshape the company’s focus and stability. “Today, we have reached an important milestone in a strategy we committed to in March 2015, when I stated in my first shareholder letter as AIG CEO that we would ‘sculpt the future AIG’ into a more focused company and that selective divestitures would be an important part of reaching that goal,” said Hancock. “We restated that objective earlier this year when we made the IPO and eventual sale of UGC a key part of an updated overall strategic framework for AIG. We believe this transaction maximizes UGC’s value while further streamlining our organization. It puts us in a stronger position to invest in the talent and technology essential to being our clients’ most valued insurer, while we continue to deliver on the promise made by

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AIG’s board and management to return $25 billion to our shareholders by the end of 2017.” Mercury Network Agrees to Acquire Platinum Data Solutions

Mercury Network has announced it has entered into a definitive agreement to acquire Platinum Data, a provider of valuation data and analytics solutions headquartered in Aliso Viejo, Calif. “Appraisal quality is an increasingly important compliance requirement and the addition of Platinum Data’s technology will expand the suite of services available to both companies’ customers,” said Will Clemens, CEO of Mercury Network. “Platinum pioneered automated appraisal underwriting and quality control, and expanding these tools in Mercury Network will help the industry enhance appraisal quality and gain efficiency.” “Mercury Network and Platinum Data customers will have even more options,” said Jennifer Miller, president of Mercury Network. “Both companies already have integrations with other quality control solutions and appraisal management systems, and those relationships will continue. Our goal is to make it as easy as possible for lenders, AMCs, credit unions, servicers, investors and their vendors to choose the best suite of services for their business.” “This is one of those ideal situations where one plus one equals three,” said Phil Huff, president and CEO of Platinum Data Solutions. “We can do more together than we could individually. It’s an exciting time for both companies. Everyone— customers, partners and employees of both Platinum and Mercury—will benefit from the innovation and growth this venture will bring going forward.” Lance Fenton, partner at Mercury’s primary investor, Serent Capital, noted, “Mercury’s growth over the past year has exceeded all our expectations, and this acquisition positions the company to rapidly expand their transaction footprint in the mortgage cycle. We look forward to working with the entire team to help deliver unmatched value to all customers.” continued on page 95

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The Millennial Mi hen I was approached about writing an article from the “Millennial” perspective explaining my thoughts on the mortgage industry, buying a house, taking out loans, etc., my response was, “What thoughts?” As shocking (and quite honestly, shameful) as it may seem, I believe this—let’s call it, the Millennial Mindset—is common among all individuals in the 18- to 30-year-old range. So what exactly is this Millennial Mindset? Well, drawing from my personal experience and the collective experiences of those around me, I would define it as a frame-of-mind cultivated by notions of immediate gratification, as perpetuated by our fast-paced, high-tech American society. I am certain that some of you Baby-Boomers have watched your beautiful, innocent, bikeriding children evolve into techmongering teens (notice that I say “watched” because I can bet that most of you have not yet managed to shatter the barrier between you and your kids—I am referring to the thin glass of their iPhone screens—leaving you to sit by hopelessly and watch, rather than engage. But don’t worry, they will come around … when their Pokémon Go crashes and they have nothing else to do besides sit and chat with Ole Pop). All joking aside, “breaking through” is a difficult feat and you are most certainly not to blame … and honestly, neither are we. With societal pressures to get our BA (Masters, Ph.D.), land a lucrative career and a lifelong partner, on top of recent

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technological advancements: Instagram, Tinder, Facebook, Snapchat, etc., there is simply no chance of getting us to expend our energy upon something that will not affect us RIGHT NOW. How can we look at the bigger picture when the world around us is demanding that we look at a two-inch by five-inch inch screen? My theory is, the instant gratification that our cellphones and laptops provide have conditioned our brains to operate in short-term timespans. Now, I am a 21-year-old UCLA student currently gunning for two BA’s—one in communications and the other in Italian—while simultaneously holding down the fort at the UCLA Extension Writers’ Program, managing several organizations on campus, and doing freelance writing projects on the side. I have also been fortunate enough to grow up in an incredible household with loving, supportive, and communicative parents and an older brother whom I have watched deal with the ups and downs of adulthood—more often than not surfing the waves of the mortgage industry, trying to stay above water. On paper, one would say I have been supplied with the proper tools and experiences to approach my future with confidence, stability, and patience. However, despite my efforts (and theirs), I still find myself overdosing on Starbucks, In-N-Out and shoes, consequently rummaging through my pockets and old birthday cards at the end of the month, searching for spare change to make rent for my overpriced, LA apartment. No matter how responsible, wellrounded or prepared I consider myself, when it comes to matters of saving and investment—I am simply hopeless.

The truth is, the only matters of loans and investment that we Millennials are concerned with, are those pertaining to our college educations. Regardless of how quickly we would like to jump into our futures … there is still that looming, dark presence clouding any sense of hope (aka college debt). If one were to ask us about alleviating the stress of future prospects, I can guarantee the first thing on our list is not buying a house, it is escaping that seemingly perpetual doom. However, what we tend to forget is: Just because we are completely consumed by this struggle, it does not mean all other struggles are at a standstill waiting patiently until we get safely situated in the saddle. In fact, they are currently snowballing alongside us and if we do not address them now, the black hole of adulthood will swallow us whole. With that said, I can assure you that most of us would rather wait until we are in the middle of that black hole, moneyless and homeless, to address it—at which point we will come banging down the doors of the nearest mortgage company, begging the loan officer for help. Now this is one method, but it is certainly not the most efficient or healthiest regarding long-term goals. Gradual investment is practically a foreign concept to the Millennial generation, as we need to learn to walk before we can run and embrace the necessary baby steps toward that white picket fence (or if you are like me, toward that 1960s postmodern home). This is where you come in. As I said, we will come running when the times comes, but you can do more than sit around hoping that the doors we bang down happen to be those of your

mortgage group. It is all about planting the initial seed. Be it an Instagram ad, or a workshop on our college campuses, you have to convince us that mortgage loans are easy, simple, accessible … and that you are different from the thousands of other companies inundating our inboxes with complex advertisements. Quite honestly, I could not care less about advertisements reading, “Do you need help lowering your annual percentage rate?” or “Are you looking to take out an adjustable-rate mortgage loan?” That might as well be written in a Slavic language. I would much sooner respond to something that said: “Scared sh#@less about the day you are going to buy a house?” or “Sinking in college debt, and trying to evade further homeowner debt? Even, We bet you never thought about the day you’re going to buy a house until you read this ad … fear not: XYZ Mortgage Group is here to save the day.” Obviously, these taglines are a little rough around the edges, but you get the point. As silly as it sounds, what would resonate with me is something that does not criticize me for being clueless. In fact, I would like to be reassured that there is a team out there that is going to cater to my lack of knowledge and ease me into the mortgage process. At the same time, I do not want to spend hours learning the ins and outs of the mortgage industry. I do not have time for a five-course meal. I want a nice, super food protein shake that I can sip on my way to class. Given the two features of the Millennial Mindset that I have discussed: Short-term thinking and technological adeptness,

Mindset By Amanda Lucido

these are the two methods I suggest for breaking through: Reshaping your approach Given that Millennials operate on different wavelengths than say, middle-aged, middle-class Americans, it is necessary to form a youth-friendly program that simply and efficiently educates new home-hunters on the process of acquiring and qualifying for loans and taking out a mortgage. Such a program might work best in the form of small two-hour workshops or free consultations that give us a basic idea of what we are getting ourselves into. The key here is basic. This does not mean speaking to us like you would your life-long clients or colleagues. You must remember that most of the people you are dealing with will have no prior knowledge of the industry. Essentially, XYZ Mortgage Group needs to be the Carl Sagan that explains quantum physics and astronomy (mortgage matters) to the layman. Once we bite, then you can reel us in with more indepth knowledge and personalized advice. Another key component of “reshaping” your approach is your aesthetic. As I have stated previously, this is a techgeneration—which means a generation constantly exposed to the glamorous high-life via Instagram and Tumblr. Consequently, we are attracted to pretty, shiny things—not things that look academic. I am not advocating a total departure from your pre-existing marketing strategy, just an additional, slightly adapted branch. If you develop specific programs that target the Millennial audience, continued on page 58

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Appraisals, AVMs, BPOs: Which Should Mortgage Professionals Choose? By Scott Robinson, MAI, SRA, AI-GRS

The disadvantages of AVMs AVMs can be quick and inexpensive, but they are not simply “automatic appraisals.” The reliance on them instead of an actual appraisal is an illustration of the Latin phrase caveat emptor (“let the buyer beware”). Here are a few reasons: l AVMs can be non-credible and unreliable: AVMs are only as good as the data that generates them. Their end results rely on publicly reported data that are frequently inaccurate, incomplete or out of date. AVMs also may pull information from FMLS or MLS that does not correspond to data requirements and

regulations governing a physical appraisal. l AVMs can’t factor in property’s physical attributes: AVMs cannot consider physical factors that can affect property values such as a recent kitchen remodel, the quality of the neighborhood, convenient access to public transportation or the motivation of the seller. An actual appraisal typically requires an appraiser to visit the property and to perform a visual inspection. This enables appraisers to accurately report property information, which they can verify. l AVMs may be submitted as evidence in a lawsuit: Litigants have used AMVs as evidence in lawsuits alleging appraisals prepared by certified appraisers were inflated. Although it is known that AVMs rely on out-ofdate information and are subject to bias, several federal and state courts have ruled that, in the early stages of a trial, the AVM estimate is admissible, allowing the law suit to continue. l AVMs may cause unnecessary stress for consumers, lenders, real estate agents and appraisers: Consumers may not realize that the property value produced by an online AVM could be noncredible and unreliable. Convinced that the appraisal is non-credible and unreliable, they may challenge it, or even cancel a sale or purchase.

It’s worth noting that the federal Dodd-Frank Act signed into law in 2010 requires a complete interior inspection appraisal in all “higher risk” loans. It confirms the importance of competency and thoroughness in collateral valuation, particularly in higher risk situations. Where there is more risk with the loan, and other factors such as credit and capacity to repay indicate higher risk, more diligence in the collateral valuation process is imperative. Under Dodd-Frank, the term “higher risk” has an expanded definition, and it reportedly has the potential to capture as much as 10 percent of today’s market. For mortgage professionals in need of a credible, reliable opinion of value, BPOs also might or might not have a place in the lending process. Broker price opinions Broker price opinions, or BPOs, are opinions of property value rendered by a real estate broker. They are frequently used in cases where a lender has a potential foreclosure. Not wanting to alert the homeowner of this action, a real estate broker may be hired prior to the foreclosure to determine the property value. There are two types of BPOs: l The drive-by BPO: As the name implies, the broker does not enter the property, but only continued on page 94

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What is an AVM? The Appraisal of Real Estate, 14th edition, published by the Appraisal Institute, defines an automatic valuation model, or AVM, as: “Computer software that queries property and market data, analyzes comparable property and market information to assign a value or range of values to a particular property, or generates metrics applicable to assessing the credibility of valuation-related statements or conclusions.” Developed approximately 40 years ago by property tax appraisers, AVMs analyze property information from public property records, including tax assessments and deeds. The goal was to help

improve productivity and fairness in locations where there may not be a sufficient number of tax assessors. By the 1990s, AVMs became important tools (http://rismedia.com/2016/05/18/aut omated-valuation-models-whatyou-should-know/) for financial institutions in their evaluation of collaterized mortgage risk. Today, consumers can get a “guess-timate” of their home’s value without the cost or time of dealing with a lender or an appraiser. This information is available within minutes using free AVM programs on Web sites such as Trulia and HouseLogic. But does the convenience of easy access ultimately help or harm lenders’ clients?

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o help their customers, lenders might be tempted to choose a less time consuming—and potentially lower cost—real estate valuation method than an appraisal. But while alternative valuation options—such as automated valuation models (AVMs) and broker priced opinions (BPOs)—might be cheaper, are they better? AVMs and BPOs can play valuable roles in real estate valuation, but there are many reasons they should be regarded as supplements to, and not replacements for, real estate appraisals ... which remain the valuation profession’s “gold standard.”

nmp The future of corporate storytelling Angel Oak Mortgage Solutions LLC

DocMagic

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Angel Oak Mortgage Solutions is leading the way in the alternative lending space. Offering wholesale subprime and alt-doc options, Angel Oak brings safety and reliability back to the non-prime market.

Caliber Home Loans Inc.

Ernst Publishing Co., LLC

3701 Regent Blvd Irving, TX 75063 800-754-8955 CaliberWholesale.com

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Caliber Wholesale’s success is built on a full array of conventional, government and Portfolio loans, combined with our reputation of providing our business partners with the highest level of service.

SEPTEMBER 2016 n National Mortgage Professional Magazine n

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DocMagic delivers the best end-to-end Document Preparation, eDelivery and Compliance Solutions in the industry. Over 10,000 customers in fifty states rely on us for innovation, quality, and service.

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1900 Gallows Road, Suite 800 Tysons Corner, VA 22182 800-296-2275 fgmcorrespondent.com

Citadel Servicing is committed to the emergence of Non-QM/Non-Prime lending. Pioneering the most innovative lending programs which include Alt Doc, life events (FC, BK, and SS), $3mil loan amounts and low fico scores.

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We’re an award winning Appraisal Management Company focused on building positive relationships with our business partners. We are revolutionizing the way business is done with our new and exciting technology.

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United Wholesale Mortgage

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Paramount Residential Mortgage Group, Inc. (PRMG) is one of the largest privately held national mortgage bankers and residential home lenders, helping homeowners purchase homes across the U.S.!

REMN Wholesale 194 Wood Ave. S. 9th Floor 732-738-7100 www.remnwholesale.com Iselin NJ, 08830 REMN Wholesale provides same day turn times every day on new file submissions. With a commitment to the broker experience, REMN is leading the way as a preferred partner in the mortgage industry.

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get your party on! Holiday Networking Parties dates and locations!!!

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TagQuest Inc. is a full service marketing firm offering the most up-to-date, cutting edge marketing solutions for the ever changing Mortgage Industry. Proudly serving our clients for over a decade.

We are seeking nominations from our readers for National Mortgage Professional Magazine's "40 Under 40" feature, slated to appear in our December 2016 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://nmpmag.wufoo.com/forms/nmps-40-under-40-2016/

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A vendor management solution. The first settlement agent vetting firm in the industry today offers a host of reliable and affordable risk tools for banks, mortgage lenders and credit unions.

If an Insured Closing Letter Is Not Insurance, What Is It? By Andrew Liput

SEPTEMBER 2016 n National Mortgage Professional Magazine n

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frequent question I often hear from lenders who have a claim related to a title or closing agent is: “What is the insured closing letter all about?” When I turn the tables and ask them what they think it is, the answers I usually receive are: l A part of the title insurance; l An insurance policy covering the settlement agent; and l More typically “I have no idea.” Considering that in many states, title insurers may charge a borrower between $25 and $100 for the privilege of the issuance of this letter in connection with a transaction, it seems that lenders should make it a point to become educated regarding the matter. Title insurers are licensed by states to issue insurance policies, just like any insurance provider. However, the nature of title insurance is a form of property and casualty product. It covers for losses incurred where real property is impaired by claims against title. In an era of electronic records and recording, this rarely happens; title claims are not very common today. When they do occur most instances involve minor defects, such as mis-recorded documents or missed liens which can be remedied without a total loss or major claim. Title insurers are not licensed to issue fidelity coverage or errors and omissions insurance, the type of coverage one would look to when a person or firm engages in intentional or negligent acts causing harm. This includes losses from stolen funds, coordinated fraud, looking the other way, or selling consumer private data. Thus, the insured closing letter was born. In some states, it is known as the Closing Protection Letter (CPL). It is merely a letter from the title insurer warranting that in certain circumstances, they will cover a lender and the borrower from actual losses caused by the settlement agent who may or may not be their employee. Simple right? Not really. A warranty letter is not an insurance policy. It is not governed by insurance laws and contract laws in the same way. It is not subject to the same insurance claim procedures and statutory rights governing bad faith claims practices. In the case of a serious claim, coverage will likely be excluded (theft of funds is an exception) and may require costly litigation to resolve issues of liability and damages. The takeaway from all of this is the following: The insured closing letter is not insurance and it is not a substitute for good risk management. Settlement agents are in a lender’s highest risk bucket. Manage that risk carefully because if you are hoping that a CPL will protect you, chances are it will not do so.

Andrew Liput is CEO of Secure Insight, a risk analytics firm offering vendor management services addressing settlement agent risk. He can be reached by e-mail at ALiput@SecureSettlements.com.

SPONSORED EDITORIAL

the millennial mindset

your publicity and marketing should also fit the bill. Personally, I would aim toward simple, sleek and contemporary—no Times New Roman. I would also consider hiring a photographer or freelance filmmaker who could whip up a series of photographs and a short video featuring hip, young adults embarking on their mortgage journey. Planting the seed As I said before, we most likely will not approach you until we are in the thick of our struggle. With that said, have you ever heard of priming? It is a psychological term referring to an implicit memory effect in which exposure to a stimulus influences a response to a later stimulus. In other words, if you plant the seed early on, the first time we hear the term “APR” in our newfound house-hunting mental state, XYZ Mortgage Group will be the first resource we seek out. So how exactly do you go about planting this seed? l Avenue A: Contact places like UCLA’s Bruin Resource Center which offers a variety of services to UCLA students and alumni, running the gamut from Career Help to Housing Support. You can relay the information regarding your program to these centers, leave a little swag at the front door, as well as a schedule for those upcoming two-hour workshops, and before you know it, by forming a relationship with these collegiate resource centers, you have formed a relationship with us college students. If our university has trust in you, why shouldn’t we? l Avenue B: While not every Millennial is fortunate enough to have the input of their parents, many of us are, and although it seems as though we repel the involvement of our elders in an effort to cultivate our angst-ridden and rebellious image…if we are

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lazy and clueless, we will more often than not heed our parents advice (even if we’re 30, we’re actually 30-going-on-16). Therefore, I would recommend establishing some sort of parent/child program in which you inform your current, fullfledged adult clients of your new program: “By the way, you mentioned you have an 18-yearold daughter. I just wanted to let you know about our Millennial Mortgage Prep program …” and get them to pass along the information—perhaps you even hold a joint consultation. l Avenue C: Last, but certainly not least, Instagram ads. It might seem specific, but I guarantee it is worth a shot. Everyone, and I mean everyone, has an Instagram. And fortunately for you, the CEOs recently decided to feature advertisements that show up in everyone’s feed. This means that when your precious Millennials are scrolling through the posts of the day, they might stop to watch a 30-second video of a cute, young couple sitting in their old Volkswagen Van with a piggy bank, counting change brainstorming ways to consolidate their finances (a cool new song plays in the background). At the end, the girl jumps into his arms and they spin around revealing their adorable, newly purchased home, at which point the following tagline flashes across the screen: “XYZ Mortgage Group … Making the impossible, possible.” At the end of the day, it is important that you take my advice with a grain of salt. As I said before, I am a clueless college student—what do I know? With that said, I think that shifting your approach to cater to exactly that—the clueless college student—will get you one step closer to transforming our Millennial Mindset into a Millennial Mortgage Mindset.

Amanda Lucido is a student at the University of California, Los Angeles (UCLA) where she works as an editor and contributor for several literary and art publications, as well as a part-time assistant at the UCLA Extension Writers’ Program. She is the daughter of Paul Lucido, national marketing director at Paramount Residential Mortgage Group (PRMG).

new to market

Mortgage Technology

YOU Are the Bus Driver By Andy W. Harris, CRMS

“The passengers in the process cannot throw the bus driver (the mortgage loan originator) under the bus or the bus will crash with everyone inside.”

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companies confidence in the thirdparty vendors with whom they choose to work. An emblem will appear next to a notary’s name in the Snapdocs database if he or she provides his or her identity verification via a driver’s license, notary commission, background check report, and Errors & Omissions (E&O) insurance policy. “Connecting our borrowers with high-quality signing professionals is a commitment of Equity National Title, although it’s not an easy task without the right technology,” said Kim Dusseault, Chief Operating Officer of Equity National Title. “Snapdocs’ enterprise technology platform is the central point of truth for us, as we push to meet SLAs and drive a premium borrower experience

nmp news flash n the mortgage industry, we are the bus drivers on a noncash residential home purchase. The mortgage process and the dozens of people involved with it simply steer the application to closing. The passengers in the process cannot throw the bus driver (the mortgage loan originator) under the bus or the bus will crash with everyone inside. Many, for some reason, fail to realize this and assume the real estate agent is the driver. That is a very dangerous perception for 60 all passengers and the driver of the bus, but even worse for the consumer/client passenger. Our level of regulation and control on the new mortgage liability should be clear to all parties. The mortgage process is vitally important without exception and the consumer is the most protected and important passenger. For those that are trained to fight the process or not respect it, they will certainly have a bad experience. Our job is to follow the laws, maintain the speed limit so that we don’t crash, and set realistic expectations for when we’ll arrive at our destination. We might find a short cut and provide everyone with good news, or there might be a few speed bumps we need to prepare the passengers for. Good drivers are respected and re-hired. They might even impress the passengers so much they refer them to friends and family and share great stories. Bad drivers could face complaints, or even worse, fines and potentially having their license stripped. Don’t be a bad driver. Have confidence and be a leader. Instruct and control your passengers and don’t let them try to get in the driver’s seat without a license or the ability to control the steering wheel. If you do hand that responsibility over, you will still be responsible for the outcome. Are you an originator? Send your stories! To have topics considered in future editions, please e-mail me with “OrigiNation” in the subject line at AHarris@VantageMortgageGroup.com. These can be confidential or your name and company can be referenced if you wish. You can also join the Facebook group by searching “OrigiNation.” SEPTEMBER 2016 n National Mortgage Professional Magazine n

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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) 496-0431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

without tapping additional resources.” 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@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

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1971 in the company’s secondary mortgage group. In 1974, he was named vice president of secondary market operations and national accounts sales. He later established MGIC’s operations in the Northeast United States. In 1979, Bill returned to Milwaukee to head national sales support, marketing, secondary market operations and the national accounts group. Named president of MGIC in 1982, Bill focused the company on developing strong customer relations MGIC Mourns the Loss of and risk management. The 1980s Former Chairman and CEO brought a volatile mortgage market William Lacy and a change in company ownership Mortgage in 1985, during which Bill assumed Guaranty the duties of chief executive officer. Insurance He was appointed president and Corporation chief executive officer of MGIC (MGIC), the Investment Corporation in 1987. principal When Bill retired in 1999, MGIC was subsidiary of MGIC Investment the nation’s leading provider of private mortgage insurance with Corporation, mourns the loss of insurance-in-force of over $145 William H. Lacy, retired chairman billion, covering 1.4 million and chief executive officer who mortgages. passed away on Aug. 28 of Bill served on several private and respiratory failure. On behalf of MGIC, non-executive public company boards of directors over his career. Most recently, he chairman Curt Culver said: served as non-executive independent “It is with great sadness that we director for Johnson Controls Inc., a announce today the passing of my role he held since 1997. Bill had also friend and colleague, Bill Lacy. His served as a director of Ocwen thoughtful leadership saw MGIC Financial Corp, IMX Exchange, Inc., through tremendous changes, and Total Logistics Control, ACA Capital, helped shape the company into the industry leader that it remains to this Firstar Corporation and Manifold Capital Corp. Bill is survived by his day. On behalf of our Board of four children, Tom Lacy (Jane Directors, executive management team and employees, we mourn his Scripp), Sara Kate Knight (Colin), David Lacy (Tricia Eyster), and loss and extend our deepest Margaret Lacy Meyer (Jacob). He has sympathies to his family.” Lacy began his career at MGIC in 11 grandchildren including, Catherine affected so many people in the Gulf region,” said Brian Coester, chief executive officer of CoesterVMS. “Water, although sometimes disastrous, is also essential. That is part of the reason we wanted to provide people with this basic need.” The water donation will be given to the Capital Area United Way in Baton Rouge, La. which distributed the water to locals in need.

fourth time in five months that fewer average hourly earnings for Your turn people were working in this industry, construction jobs was up 2.8 National Mortgage Professional percent over the past year to according to data from the Magazine invites you to submit any $28.22 in August, nearly 10 Associated General Contractors of information on regulatory changes, percent higher than the increase America. However, construction legislative updates, human interest for all nonfarm jobs. employment and the average hourly stories or any other newsworthy New Data Reaffirms Stronger The residential construction earnings for workers in this industry items pertaining to the mortgage Mortgage Quality sector added 11,000 jobs in recorded year-over-year gains. industry to the attention of: Construction employment totaled August to reach 132,000 employment opportunities, 5.4 6.64 million in August, which was NMP News Flash column percent higher than a year ago. 6,000 below July’s level but an Phone #: (516) 409-5555 Alas, nonresidential construction increase of 199,000, or 3.1 percent, E-mail: from August 2015. Furthermore, the created the drag for August by newsroom@nmpmediacorp.com losing 17,000 jobs for the month. increase in construction Home loan quality is continuing its Yet last month’s nonresidential employment was nearly twice as Note: Submissions sent via e-mail winning streak, according to the construction jobs had 67,000 more are preferred. The deadline for latest Loan Application Defect Index great as the 1.7 percent increase for employees compared to August total nonfarm payroll employment submissions is the 1st of the report issued by First American 2015, a 1.7 percent increase. during the same period. And the month prior to the target issue. Financial Corporation. During July, First American’s Loan Application Defect Index dropped by 2.8 percent from June and plummeted 16.7 percent when compared with July 2015. The Defect Index for refinance transactions dipped 1.7 percent on a month-over-month basis and fell 18.1 percent on a year-over-year measurement. And the Defect Index EASILY SHAREABLE CONTENT BARRY HABIB— for purchase transactions declined With a touch of a button memTHE ORIGINATOR OF THE MARKET ADVISORY SERVICE 1.3 percent month-over-month while bers are able to share charts Daily guidance and insights from Mortsliding 13.2 percent year-over-year. showing the latest economic gage Market expert Barry Habib. He closed Among the states, Maine and and housing data. over $2 Billion in production as a Loan North Dakota experienced doubleOriginator, called the bottom of the Housdigit year-over-year increases in ing Market and currently provides sales defect frequency with 16.7 percent and market training to thousands of Loan Originators across REAL ESTATE DATA & INSIDER CONTENT and 11.9 percent, respectively. The five states with the highest yearShow the housing opportunity in the country. over-year decrease in defect your local market to customers frequency were: Michigan (-33 and real estate agents. We will STATE OF THE ART, USER FRIENDLY WEBSITE percent), Florida (-24.5 percent), New provide you with affordability We've taken great pride in Mexico (-21 percent), Connecticut (levels, appreciation, resale volbuilding a website that uses 20.9 percent), and New Hampshire (ume, new construction, and job new technology, and enhances 20.3 percent). The only market with a the user experience. No matter growth…updated monthly and easily shared. There is also year-over-year increase in defect where you are on our site, additional content from Art Cashin, Kiplinger letters, and frequency was St. Louis (up 4.1 you'll always have market data in sight. Never miss a lock much more. percent), while Detroit had the alert with our real time market news and alert system. highest year-over-year decrease with a 37 percent drop. MOBILE WEB APP “The benefits in compliant loan Always stay in touch with the production processes are becoming market when on the go with more clearly evident, particularly for our Mobile Web App. It's fast refinance transactions, in the big and easy to use. Whether you l Bond Quotes declines we are observing in loan have an iPhone, Android, l Daily Video and Transcript application and mortgage defect Blackberry, Windows Phone, you'll always have access to l Interactive Charts risk,” said Mark Fleming, chief MBS Highway. No downloads, no annoying updates, just economist at First American. visit m.mbshighway.com in your phone or tablet's browser. l Lock/Float Advice “Refinance activity, fueled by l SMS Updates historically low mortgage rates, l Real Time Market News CALCULATORS AND TOOLS combined with improved loan Powerful and unique calcula- l Cashin's Corner manufacturing processes are tors to help you when pre- l The Kiplinger Letters resulting in higher quality loan senting to customers. Buy vs. l Real Estate Market Data applications with the lowest level of Rent, ARM vs. Fixed, Paying defects and misrepresentation that Points, and Amortization cal- l By The Number$ we have seen in recent history.” l MBS TrendTRAKR and Marcus Lacy; Will, George, and Henry Knight; Eva, Charlotte, and Anna Lacy; and Nathaniel, Owen, and Elliott Meyer.

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Compliance Education for Today’s Mortgage Professional By Greg Stephens, SRA, MNAA, CDEI

ompliance requirements have reached new heights in recent years, impacting virtually everyone involved in mortgage lending regardless of job function/responsibility. As a result, effective compliance training has become an ever increasing challenge to the various stakeholders in the industry. This article addresses some of those challenges in an effort to provide guidance for those tasked with compliance training of existing experienced staff as well as new staff entering the profession or taking on new roles of responsibility. In this article, we will examine the effectiveness of live classroom versus online education programs and the most effective training methodologies for new employees. Having been an educator for more than 30 years, I can certainly attest to the advantages to the live classroom experience where the class facilitator/instructor can receive immediate visual feedback from the class participants as to the effectiveness of the presentation content and delivery methods. In that same time period, I have also been on the other side—as a classroom participant in hundreds of live classroom courses and was able to provide some of that immediate feedback to the instructor. I have also taken numerous online and synchronous courses and as a certified distance education instructor I developed a seven hour online course in 2014 that was approved by the International Distance Education Certification Center (IDECC), the internationally-recognized agency for distance education instructor and course approvals. There are advantages to both

educational venues which we will now begin to explore. As you prepare to develop your educational program some of the factors to consider are: 1. Will the audience be on campus or remote, or a combination of both? 2. How large is the audience you are attempting to reach? 3. Is the subject matter conducive to live classroom or online presentation or both? 4. Do you have skilled trainers or will you be using subject matter expert (SME) / staff? 5. Will the training materials be submitted for CE approval? Involve completion certificates? 6. What is the length of the training session? Consideration #1: Will the audience be on campus, or remote, or a combination of both? Live classroom training: If the training will be on campus in a live classroom setting, what classroom facilities are available? Classroom setup l Will class room style seating be available? l Does the room have internet access for web-based content during the class? l What audio/video equipment will be needed and available? Instructional materials l Will there be any handout materials that will need to be printed in advance? l Will they be provided by the instructor/facilitator? Instructor(s)/facilitator(s): Local or will travel/lodging arrangements be needed? Remote Participants l It is possible to include remote participants under certain circumstances: Provide the training materials in advance

and/or have phone conference capabilities so they can listen in and follow along with the training materials from remote locations. Off-campus facilities: If the training will be live classroom, but take place in an off-campus facility, many of the same questions noted above will be applicable, particularly the classroom setup, audio/video equipment availability and cost, and phone conference capability if any of the attendees will be participating from remote locations. Classroom style is the most preferred vs. seating in the round for those participating in the class room setting. Online training: In today’s hightech and globally mobile world online education offers the most flexible training options for employers and employees. If the training is to be conducted online, there are numerous options available including: l Pre-recorded videos that attendees can access independently on their own schedule which can include proprietary training content developed internally as well as take advantage of a broad range of recorded training videos accessible on Web sites such as the Consumer Financial Protection Bureau (CFPB), Fannie Mae, Freddie Mac and the U.S. Department of Housing & Urban Development (HUD). l Live Webinars can be presented in several formats, including less expensive teleconferencing options than webinar links. By providing the attendees with a PDF copy of the presentation materials ahead of time, the presenter can then direct everyone on the conference line as they progress through the

materials, versus live screensharing. This also reduces technical hardware/software issues some of the attendees might experience attempting to link to a webinar versus dialing into a conference line. l If interactive video conferencing is the preferred method, there are several free or low-cost Web conferencing providers, including FreeConference, Join.me, AnyMeeting, Speek, Google Hangouts, and GoToMeeting just to name a few. Consideration #2: How large of an audience will you be attempting to reach? If the training is via live classroom setting, will the classroom accommodate everyone in one session or will you have to split the training into multiple sessions. If multiple sessions are required, can they be achieved in the same day? If not, that impacts the facilities availability, even for on-campus training where multiple departments utilize the same training room, travel arrangements for any out-of-area instructors, etc. Case-in-point … every two years, I have been conducting a seven-hour compliance training class for one of our client’s underwriters and appraisers. The attendance size is so large we have to split the training into two separate days. This definitely creates numerous logistics issues which we will cover in the answer to question 6. Consideration #3: Is the subject matter conducive to live classroom, an online presentation or both? Most educational content can be effectively delivered via either medium, especially with the recent continued on page 96

The Long & Short The Business of Short Sales

What Could Drive Another Mortgage Crisis? BY PAM MARRON

here is no refinance available for as many as 6.4 million negative equity homeowners who have a conventional first mortgage not backed by government-sponsored enterprises (GSEs), Fannie Mae or Freddie Mac, or a second mortgage or home equity line of credit (HELOC) that is “underwater,” where more is owed on the mortgage than the home is worth. Many of these mortgages are interest-only loans that are now resetting to fully amortized payments with increases seen as high as 400 percent-plus. Simply, because these loans have negative equity, there is no refinance available to reduce initial higher interest rates from years ago. The only option for affected homeowners is a modification or a short sale and both require the homeowner to be delinquent on their mortgage first. These homeowners struggle to “stay put” in negative equity homes awaiting home values to return. If this problem is not taken seriously, the result will be a new wave of short sales that will have a negative impact on the housing industry. It is already happening. And this time it is affecting the elderly. Caps placed on the maximum loan-to-value of non-GSE first mortgages and the combined loan-to-value (LTV) when second mortgages and HELOCs exist are what holds back a refinance for these specific negative equity loans. Compound this with the

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interest-only reset of many of these loans, and the problem is disastrous. For too long, there has been a lack of attention to a refinance where none exists for negative equity homeowners. Many believe these homeowners “did it to themselves” and massive press about short sellers labeling them as “strategic defaulters” (or those able to make payments but refuse to) was overshadowed by the fact that negative equity homeowners who worked with banks to short sell homes were told by their own lenders that they could not get approved for the short sale until they were delinquent on their mortgage first. This policy continues to this day for most lenders. But since 2013, reports have proven that ”ruthless” or “strategic” default during the 2007-2009 recession were relatively rare.1 In a 2015 follow up of this study,2 job loss and adverse financial shocks in addition to divorce, large medical expenses and other severe income loss attributed greatly to mortgage default. Most importantly in this report … while household-level employment and financial shocks are important drivers of mortgage default, analysis shows that financially distressed households do not default. More than 80 percent of unemployed households with less than one month of mortgage payments in savings are current on their mortgage payments. Disdain of reasons for why negative equity occurred is often

the primary focus of apathetic attention to a refinance solution. Instead, focus should be on a sustainable refinance for those on time with their mortgage payment to assist them to “stay put” longer. There is no argument of “moral hazard” or “strategic default” for a refinance option that allows responsible homeowners breathing room to stay put. When homeowners are not struggling to make their payments, they keep up homes which increases the value of our communities. We can continue to think that the negative equity problem has gone away in the United States but it has not. More calls are coming in from elderly with no chance of increase in their income. Many of them did a refinance or a second mortgage to help other family members but are now stuck themselves. The

reason for a refinance should not matter. And we shouldn’t require affected homeowners to be delinquent on their mortgage first causing a destruction of good credit that results in negative unintended consequences for future credit. Instead, we should be questioning how we can stabilize areas where negative equity still exists. There are solutions available with existing mortgage programs now. A white paper entitled “Urgent Attention Needed: Two Problems and Solutions That Exist for Responsible Homeowners Who Have Negative Equity in Their Homes” that provides U.S. and Florida data showing how many negative equity homeowners can be helped is at HousingCrisisStories.com/wpcontent/uploads/2016/07/Urgent. pdf.

Footnotes 1-“Unemployment, Negative Equity, and Strategic Default,” August 2013, Federal Reserve Bank of Atlanta (Urban.org/sites/default/files/gerardi-kerkenhoff-ohanianwillen-strategic-default.pdf). 2-“Can’t Pay or Won’t Pay? Unemployment, Negative Equity, and Strategic Default,” Sept. 21, 2015 (BostonFed.org/publications/research-department-workingpaper/2015/cant-pay-or-wont-pay-unemployment-negative-equity-and-strategicdefault.aspx).

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 Pam.M.Marron@gmail.com or visit HousingCrisisStories.com, CloseWithPam.com or 8Problems.com.

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Featured Industry Leader Bill Bower

President, National Consumer Reporting Association (NCRA) By Phil Hall

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ill Bower is chief executive officer and chief business development office at Lancaster, Calif.-based Contemporary Information Corp. (CIC) and president of the National Consumer Reporting Association (NCRA). National Mortgage Professional Magazine recently spoke Bill concerning his work with his industry’s trade group and on the state of credit reporting.

How did you get into the credit industry? Was this your original career choice? Bill Bower: There are probably very few young adults that dream of an exciting career in the credit reporting world whenever they grow up! My original career choice was to be an Army officer. As it turned out, I lived that career choice in the National Guard and later in the Army Reserve.

What is NCRA doing to tackle ongoing threats to credit safety, including cyber attacks and identity theft? Information security is a

Do you believe that Americans are becoming more responsible in handling consumer credit? Many consumers have grown up with credit and with a basic knowledge of how credit works. Certainly within the last decade, we’ve seen the bureaus, as well as industry trade associations like NCRA, come out with a plethora of consumer education initiatives. Those credit and score education programs have been supplemented with the efforts of both the FTC and the CFPB to both inform and protect consumers. So there is a general awareness by most consumers about how credit works—but there is a lot of confusion as well. The tighter restrictions on loans, coupled with the recent memory of the burst of the housing bubble, have forced consumers to become more responsible with their credit. However, as the memory of the pain of the recession fades and the terms for credit become once again more lax, many consumers will likely return to a more irresponsible handling of their financial affairs including their credit. That’s just a reality of the market. In addition, there is a raft of misinformation concerning consumer credit out there. Many Americans don’t take the time and effort to research how the credit world works and how their personal credit and payment decisions impact their

lives directly. Unfortunately for some, it takes a bad credit experience to cause them to take a closer look and educate themselves on how credit really works. What are the challenges facing CIC in today’s market? Litigation remains an ongoing challenge both to CIC and to the credit reporting industry as a whole. A great many of these lawsuits are not based on actual consumer harm, but rather, on perceived technical violations in procedure. I’m hopeful that the U.S. Supreme Court ruling in the Spokeo case will help stem the tide of frivolous litigation which will help to clear the courts for those consumers which have actually suffered damages. Looking back on your career, what do you see as you greatest accomplishments? When we started in 1986, most credit reports were delivered by phone, fax or mail. Developing systems that leveraged the best of technology, while maintaining a focus on data integrity, has always been a driving philosophy for me. I’m also very proud of many of the team of professionals that we’ve cultivated at CIC. While I’ve had many accomplishments along the way, my greatest accomplishments are always yet to come. What professional goals do you have for the next 12 months? I would have to say that continued transformation of existing systems, integration with larger platforms and distribution channels, and development of key staff within our organization are all high priorities. Outside of work, how do you spend your leisure hours? I enjoy Civil War and Revolutionary War history, hiking, and spending leisure time with my wife of 32 years and my family.

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

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When did you first get involved with NCRA? What positions have you held in NCRA, and were your responsibilities? I first got involved with NCRA back in 2001 just as a member. In 2009, I was asked to fill a Board of Directors seat that had been vacated mid-term. I served out the remainder of that term and was elected to successive terms on the Board. During that time, I served first as the chair of the new Tenant Screening Committee, then as the Board Liaison to that committee. I also was instrumental in the formation of the Resident Screening Advisory Board, a sort of tenant screening think tank made up of high level industry professionals serving the multifamily housing vertical. In 2015, I served as vice president of the association, and finally, as president in 2016.

What impact—positive, negative or both—has the CFPB had on the credit industry? Initially, the need for the CFPB’s oversight of the credit world was unclear. After years of Fair Credit Reporting Act (FCRA) regulation under the Federal Trade Commission (FTC), the inclusion of credit reporting in Dodd-Frank seemed superfluous and unnecessary. The initial attempts at a comprehensive and effective consumer complaint database created confusion as complaints were often entered in multiple times and the requirement of participation by CRAs was unclear. There was also a considerable learning curve as the CFPB sent teams to the bureaus to both audit and to understand the business. Without question, the CFPB has had an impact on the way the credit industry handles consumers and especially on the emphasis on security and regulation that translates through our industry down to the end users of the data. The CFPB is still emerging and changing and it is our hope that they will continue to engage industry trade organizations like NCRA as they develop the internal regulations that will govern the industry.

constantly moving target and combatting cyber attacks, identity theft and data breaches now take on an everimportant operational priority of every CRA. NCRA facilitates our members with a number of tools including ongoing education (with an emphasis on the SAFC certification program), involvement of vendor members from the data security space, and information to help consumers with their own credit security concerns.

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What is the story behind CIC? During college, an associate and I were evaluating business opportunities within the financial services industry, and we landed on credit reporting. We did approximately 18 months of market research, and in 1986, we formed a partnership. After narrowing our market focus down even further, we incorporated in 1988 with the name Contemporary Information Corporation, with the intention that it would simply be known as “CIC.”

What is the relationship like between NCRA and other mortgage professional trade groups, particularly NAMB? NCRA has a strong relationship with other industry trade groups including NAMB within the mortgage space. Our close relationship allows us to help understand our customers’ needs and champion their regulatory challenges. Groups like NAMB help to disseminate educational opportunities to mortgage professionals and information about credit reporting and scoring to consumers. In addition to relationships with trade groups within the mortgage professional space, NCRA also has a close working relationship with trade groups representing the multifamily side of the housing world such as the National Apartment Association (NAA) and its local and state affiliates.

How to Win More Business as an AE By Ron Vaimberg

oday, the wholesale/correspon dent account executive faces as much competition as they ever have. In fact, with fewer lending programs available to bring to the marketplace, standing out from the crowd as an AE is harder than ever before. One of the first things crucial for today’s AE to understand is the mindset of your existing clients, as well as prospective clients, before you event attempt to develop or enhance relationships. In the day’s prior to the great meltdown, brokers and loan officers were willing to meet with and speak with almost any AE

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because they were always looking for the “next product” that could allow them to get a loan approved that would have been declined in the past. In fact, if you were an AE during that time period, your company was likely launching new and more aggressive underwriting programs constantly. This was not just a sub-prime/Alt-A phenomenon, as even Fannie Mae and Freddie Mac were constantly changing their underwriting criteria and qualifying ratios to be more aggressive. Today, the choices for loan programs are very limited, and a lender’s appetite for pushing underwriting to the extreme is

much less. For this reason, many brokers and loan officers are of the mindset that most lenders are pretty much the same and will place their comparison between companies on two main factors: Price and turn-times. Now let’s be real just for a moment … as an AE, you know that you will not win business by walking into any broker’s office and telling them “Your service stinks,” “Your turns times are horrible,” or “You are priced out of the market.” The traditional thinking of winning business is that you that you have to “one up” the competition. That means somehow or someway you need to offer something that is better than what your competitors currently offer. Although this is true to a point, the key resides in how you position yourself and your company. I will get to exactly how to do that in a few moments. Right now, I need to continue with the natural progression of understanding mindset first, and then moving on how to leverage your understanding of your prospect’s mindset. Because brokers are busy with volume and don’t really perceive the difference between you and others, you need to be unique in your approach and also leverage every opportunity you have starting with your existing relationships. I am a big believer in taking advantage of what I call “Opportunity Assets.” These are existing opportunities for business growth that you are not taking full advantage of. For this reason, when I am working with an AE one-on-one through personalized coaching, or presenting to an entire AE sales team, I always focus first on the fastest and easiest way to grow their production using resources that already exist. Many AEs have existing relationships that already send them business. You have may have a great relationship with a broker, and you likely also are

connected with LOs in the office, as well as processors. What is often the mistake that is made is that you keep visiting or making contact with your clients in hopes that you will create more presence of mind just by checking in. This does not usually work very well in creating a significant increase in business from the client. The reason is because they have already mentally placed you into a category and they send the amount of business that correlates with their mindset of how they see you or your company. Please understand that this is not simply about product, it is about how they perceive you and your company from pricing to turn-times to communication. Instead of conducting your normal check-in with your broker client to see how they are doing and to explore what files you may be able to assist them with, try this approach. Ask a very focused question in person whenever possible. Reach out to your client, and request a face-to-face meeting. If you are an inside AE, then contact your client to schedule a specific time to speak with them. The mere indication that you want to meet or speak with them at a specific time implies that there is greater importance to the reason you are contacting them. Once you are given the opportunity for the sit-down, then is the time to do two things. First, you want to thank them for their business. This is different than thanking them for a loan they send. Rarely, if ever, do AEs thank their brokers for the relationship. It is far more common to thank them for deals. This may sound ridiculously simple, however I urge you to try it. You will be shocked by the reaction of your broker or loan officer. The second part of your presentation is to ask them this specific question: What do I, along with my company, need to do to serve you at a higher level? Please note that I did not tell you to ask them how you can

get more business. That is a self-serving question that is more about you than it is about your clients. When you ask someone how you can serve them better, their response leads you to uncover the real objections that prevent you from getting more business. My clients who have implemented this strategy have been absolutely floored by the responses they receive. Ironically, quite often, the hidden objection you elicit from your client more often than not is something you are able to solve for them. However, you never knew it was important to your client so you never discussed it. Price and turn-times are, of course, a reality in the need for the level of service you must provide. However, when you take the time to find out how you can serve your clients at a

higher level, you will be surprised at how they will make it easier for you to meet their needs and earn more business. To take it to an even higher level, you can ask the question â&#x20AC;&#x153;What do you find most frustrating about dealing with lenders and AEs, even the ones you work with on a regular basis?â&#x20AC;? Get ready with pen and paper in hand because they are going to give you the secrets to winning more business from them and even greater loyalty. The next area in growing your business with new accounts is knowing how to get their attention, and then how to deliver a presentation that wins them over. Remember, winning over a new account goes far beyond getting them to say â&#x20AC;&#x153;Yes.â&#x20AC;? They have to be motivated and excited enough to complete the broker application and submit all of

â&#x20AC;&#x153;Because brokers and loan officers are busy with volume and donâ&#x20AC;&#x2122;t really perceive the difference between you and others, you need to be unique in your approach.â&#x20AC;? the supporting documentation. Beyond that, they then need to be willing to learn how to do business with you so they will start submitting files. All of this takes motivation and the process of making it easy for them. In a single article like this, it is not possible to cover everything you need to do to get their attention, get them to say â&#x20AC;&#x153;Yes,â&#x20AC;? complete the application package, and then begin the submission process. However, here are some strategies that you

can use to assist in accomplishing each one of these phases. Getting their attention and the appointment In order to get the appointment with a new prospective broker/banker, you must have a way of getting their attention. Oftentimes in working with my clients, I have them send me their e-mails and whatever methods continued on page 72

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how to win more business as an ae

they use for getting the attention of brokers. It is amazing how many AEs use boring subject lines and content that scream to the intended target that you are likely to waste their time. Knowing how to write the proper headline on an e-mail and the first paragraph are key to getting a response. Even if you donâ&#x20AC;&#x2122;t get a response, when you send the right messages, you will dramatically increase the number of prospects who will take your call when you follow up.. In a recent survey I conducted on a Webinar for account execs, I asked the audience how many different

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continued from page 71

ways they consistently reached out to prospective clients. The answer blew me away. Seventyeight percent of the AEs on the Webinar stated that they had only two methods of getting the attention of new prospects. Going further into the survey, it was determined that more than 90 percent of the attendees did NOT have multiple messages prepared as part of a campaign to get the attention of and an appointment with their intended target. To succeed in gaining the attention of your prospects, you must have multiple means of doing so, a series of influential messages that compel them to respond, and outside-the-box

marketing strategies that will stand out and make sure they remember you. Delivering the ultimate AE presentation The majority of AEs deliver the old product and service dump presentation. They get an appointment with the prospect and focus on dumping everything that the company offers in hopes that the prospect will bite on something. I liken this to going fishing and throwing 20 different hooks in the water in the hope that a fish will bite on something. The right way to win relationships is not to dump everything, but to first know what you must talk about with your prospect. To do this, you must ask great questions. With the right questions, your prospect will tell you everything you need to know to win the relationship. To give you a shortcut to making this concept work for you, allow me to explain the key to influence. To win relationships, you must solve problems for your prospects. Fortunately, the mortgage business has a way of causing a great deal of emotional pain for many who work in the business. With all of the regulatory and compliance changes and rules, the level of frustration that exists with brokers and loan officers has never been higher. Knowing how to tap into this negative emotion is the most powerful influencing skill you will ever need to win relationships. When you ask great questions that uncover the pain and frustrations that your prospects have, they will tell you everything

you need to know in order to serve them. Although price is a factor in decision-making, when a broker or loan officer truly believes that you will solve an issue for them that no one else is solving, not even their existing lender, you stand a greater chance of winning the relationship. When a prospect feels that you are going to make their life easier, getting them to complete the paperwork is easier. The seven keys to succeeding with new relationships is to: 1. Grab their attention in creative ways with the proper messaging, along with a marketing campaign that combines different methods of contact. 2. Be relentless in your follow up. Know what to say to trigger an increase in the need for your prospect to respond. 3. When you meet with clients, ask them the questions that will help you uncover their pain and frustration. 4. Explain and demonstrate how you and your company can solve problems for them and make doing business less stressful and easier including helping with regulatory and compliance concerns. 5. Keep them motivated to want to do business with you and use that motivation to get them to complete the necessary paperwork. 6. Keep following up and stoking the flames of pain and the solutions you provide so their motivation remains high. 7. Always make sure that after every contact with the prospect, you have your next step agreed upon so you both know exactly what you can expect from each other.

Ron Vaimberg is executive director and head coach for nmpU, a division of National Mortgage Professional Magazine. Ron is a leading trainer and coach to wholesale and retail mortgage professionals and the creator of ForAEsOnly.com. Ron can be reached by phone at (888) 979-6678 (nmpu), ext. 801 or by e-mail at RonV@NMPMediaCorp.com.

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Resources to be a Better Loan Officer or Mortgage Broker Providing ancillary services for your clients that many of them need By Charlie Fitzgerald, MBA

rior to the DoddFrank regulatory changes in the retail/wholesale conventional residential lending industry, many mortgage loan officers and mortgage brokers had an arsenal of “go to” money sources for nearly every type of borrower client they might encounter in their business. There were conventional A paper lenders, Alt-A lenders, sub-prime lenders (B/C/D paper) and even institutional lenders that had a host of “creative programs” to fit almost every borrower circumstance: Lite doc, no doc, NINA, NINJA, bank statements

only, stated income etc. Although the industry has begun to see a semblance of a return to the market for other than strictly conventional loan programs … there are still really very few loan programs for owner-occupied borrowers today, compared to what there once was … and the pain points and qualifying criteria for what loan programs there are today, is demonstrably higher. Looking at the investor borrower loan programs available today vs. what was available prior to DoddFrank regulatory changes is even more alarming. Particularly when you consider that all of the DoddFrank changes were intended (so we were all told) to bring a

heightened level of “Consumer Protection” to the mortgage lending industry and “Investors” are by definition, and intent, NOT seeking consumer loan products. Yet the vast majority of anything available for a real estate investor in the conventional lending products arena, are all but gone. In the best cases, when they do exist, they exist with almost unattainable qualifying metrics for the vast majority of investors, to the extent that 30 +/- percent of all investor borrower applications for them are approved. Those that are approved, likely will take 50-90 days (or longer) to actually close and fund. So, where does a conventional loan officer or mortgage broker go

to find the financing that their investor clients come to them looking for? How do these industry professionals serve the needs of their clients and maintain relationships of superior service? Lastly, can this still be accomplished in a manner in which the loan originator can meet the needs of their client well and be compensated for doing so? Quite simply, the answer is yes, and it’s truly a lot simpler for all parties involved than one would expect. Serious real estate investors have been using private money lenders for the acquisition and rehabilitation and/or renovation of investment real estate projects for decades. The reality is that private money/hard money sources have been around literally for centuries and in the current environment, they can be one of the easiest, most reliable source for real estate investors to access the capital needed to acquire residential real estate properties for either fix/flip operations or

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buy/fix/rent operations. Conventional loan officers and mortgage brokers who have a solid working relationship with a top notch private money source can deliver resources to their investment real estate clients that no one else can. In doing so, the loan officer/mortgage broker can enjoy equitable compensation for their part in the transaction on behalf of their client. Yes, they can also do so and remain compliant with all of the regulations relative to cobrokering, third-party originating and/or receiving referral fees. The critical component for the conventional loan officer or mortgage broker is to source a reliable and credible private money source. A lender that has the capacity to meet the needs of their investment real estate borrowers, with programs, rates and loan terms that are competitive for their chosen

market. A lender that is following the rules and regulations for the private money lending space (yes, they do exist). A lender that is going to protect the client relationship on behalf of the loan officer/mortgage broker, while at the same time, serving as a true “partner” to meet the needs of the loan officer, mortgage broker and the borrowing client. Sadly, as with any industry, there are lots individuals and companies that present as viable opportunities for a private money source for investment real estate investors that frankly just are not. The good news is, there are also quite a few very capable, reputable and reliable private money sources that can be accessed to be a fantastic resource for a conventional loan officer/mortgage broker to add to their arsenal for delivering necessary services and lending resources to their clients. The key is knowing which is which. Here

are a few ways one might go about that: l Check the industry trade journals for resources to contact l Interview (by phone or in person) contacts at companies that appear to have what you need. Ask for rate sheets, guidelines, application packages, etc. Review their Web sites and get a feel for the quality (or lack thereof) of the company behind the checkbook. l Ask where their funds come from. l If possible, visit their offices and find out if they will come to yours.

l Ask for a broker agreement or referral partner agreement for your review. At the end of the day, it’s about who makes you feel the most confident and comfortable. This is a people business, and there are great people in it … there are notso-great people in it. Spend some time to find the right fit for you and your clients. It’s not always about rates and fees and promises … the more important aspects are truth, transparency, reliability, capacity and an unwavering commitment to superior client service.

Charlie Fitzgerald, MBA is branch manager and senior account executive for Civic Financial Services LLC. Charlie served proudly in the USAF as a law enforcement officer and was assigned to the inspector general of the Air Force Special Operations Division as an administrative management specialist. He may be reached by phone at (702) 561-1056 or e-mail Charlie.Fitzgerald@CIVICFS.com. 75

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Prepare for Unconventional Conventional Lending

conventional loans. But they may require more attention from a conventional lender.

Find wholesale lenders that work with borrowers who don’t fit the traditional mold By Rey Maninang onventional lending covers a wide swath of the residential mortgage industry, as it includes both fixed-rate and adjustable-rate mortgages, conforming and non-conforming loans and nearly everything else that isn’t guaranteed by the U.S. government. As such, it has long dominated the residential mortgage market, but even more so since the housing crisis and subsequent tightening of credit standards. This past July, conventional loans accounted for 65 percent of the mortgages originated1,

according to the Ellie Mae Origination Insight Report. And no wonder, as conventional loans had the highest closing rate at 72.1 percent. These numbers are reflected in the often narrow offerings of today’s wholesale lenders. These lenders dictate strict guidelines and requirements for their conventional loans, and show little interest in investigating the realities of more complex loan scenarios. But as more and more brokers and originators jockey for the perfect conventional loans, they may be overlooking the borrowers—and lenders— that can help them close more

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loans. With some larger banks leaving the wholesale space, mortgage brokers have the opportunity to expand their business with new lenders that can manage more complex conventional financing beyond the typical loan scenario. Conventional does not equal simple Mortgage brokers recognize a good loan prospect when they see one: A borrower with great credit, a 20 percent downpayment and a steady job with a good income. For a mortgage broker with this borrower, finding a conventional loan is just a matter of securing the best rate for their customer. But not all borrowers meet these criteria. Many have a more complex credit history or a less traditional source of income. For these borrowers, mortgage brokers may have a harder time finding a lender that will provide financing. Some wholesale lenders don’t want the additional time and effort it takes to underwrite more complicated financing scenarios, such as: l A self-employed borrower with good/great credit and cash on hand for purchase l A borrower with income from child-support payments l A borrower with income that isn’t great, but who has a lot of assets l A borrower seeking the lowest possible monthly payment for the first few years of the mortgage l A borrower needing a mortgage on a partially completed home l A borrower seeking a cashout refinance after the home was listed for sale, but then taken off the market l A self-employed borrower looking to refinance, with equity in the home All of these scenarios are

A closer look If you consider just the first scenario of a self-employed borrower, it doesn’t seem like it should be a stretch for conventional lenders. Good credit, good down payment, good to go, right? Not necessarily. According to Fannie Mae’s underwriting factors and documentation for selfemployed borrowers 2, a lot more information is required, as well as more documentation. Following Fannie Mae’s guidelines, these factors should be analyzed for a self-employed borrower: l Income stability l Business location and nature l Product or service demand for the business’s focus l Financial strength of the business l The income potential of the business: that is, whether the business can keep generating and distributing sufficient income so the borrower can meet the mortgage commitment Some lenders see the need for this kind of in-depth analysis and shy away, making it difficult for mortgage brokers to secure the financing their client needs. But financing is possible if the borrower, broker and lender are willing to take the extra time to procure the necessary documentation. Required documentation would include in this scenario, two years’ of federal income tax returns (both business and personal), written analysis of the borrower’s personal income and business income and potentially a business cash-flow analysis, if the borrower intends to use business funds for the downpayment or closing costs. If you look at the next scenario—a borrower with income from child-support payments—it, too, doesn’t seem that complicated, as it’s just income from another source. But it requires extra documentation as well, which

For many lenders, any loan that doesn’t fit into their rigid

working with these clients, but brokers must be willing to put in the work to discover the lenders that take on these challenges by offering a wide variety of loan products and services to provide financing for not entirely traditional borrowers.

Footnotes 1—EllieMae.com/Origination-Insight-Reports/Ellie_Mae_OIR_JULY2016.pdf 2—FannieMae.com/Content/Guide/Selling/b3/3.2/01.html 3—FannieMae.com/Content/Guide/Selling/b3/3.1/09.html

Rey Maninang is senior vice president and national sales director of Carrington Mortgage Services LLC’s Wholesale Mortgage Lending Division. Under Rey’s leadership, Carrington’s Wholesale Division has increased volume production by over 100 percent within a two-year period, and successfully launched several strategic initiatives resulting in consistent profit increases. 77

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Finding the right lender Mortgage brokers often work

criteria is rejected out of hand, but mortgage brokers know there are many potential borrowers out there who are conventional loan prospects, even if they are more complex from a financing standpoint. There are financing options available to mortgage brokers

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l Documentation that the child support and/or alimony income will continue for at least three years after the mortgage application date; must be an official legal document l Documentation of at least six months of regular payments being made to the borrower l Review of the payment history to determine if it is suitable as a stable qualifying income Some lenders may be concerned about the eligibility of this borrower because many couples may have “informal” agreements as to child-support payments, which means they are not a stable source of income. In addition, how much of the borrower’s income is represented by the childsupport or alimony payments is another factor. For many lenders, if the payments comprise more than 30 percent of the borrower’s qualifying income, additional documentation is required, often including documentation of a full year of complete, ontime payments. All this does not mean, however, that this borrower is not a good candidate for a conventional loan—although that is how some lender’s guidelines interpret this situation. Just by looking at these two possible scenarios, it’s apparent that not all conventional lending is created equal. There is a wide variety of borrowers out there, and their needs may not be met by the typical conventional guidelines of many wholesale lenders. Luckily, some lenders do understand how to operate beyond straightforward conventional lending scenarios.

with an array of lenders—some who work exclusively with U.S. Department of Veterans Affairs (VA) loans, or construction loans or some that only do conventional lending. Partnering with a lender can be a complicated process, but mortgage brokers who want to serve the most clients—from straightforward purchase loans to more complicated cash-out refinances—should seek lenders that have the same objective. When lenders list the types of loans products they offer, brokers should take the time to make sure they fully understand just what lenders mean by their lists. If a lender provides Federal Housing Administration (FHA), VA and conventional loans, examine their underwriting guidelines to see if they follow the broader guidelines of the government, or Fannie Mae or Freddie Mac or if they instead place additional requirements on their borrowers. Talk with other brokers who have worked with a particular lender to determine if they have a rigid set of requirements or if they look at the entirety of loan scenarios. Consider talking with someone at the lending institution, especially if you have a particular scenario in mind. By taking these steps, you can find a lender that meets your needs and the needs of your clients. Mortgage brokers should partner with lenders that offer conventional lending that provides financing for a wide variety of borrowers, not just one small subset. Conventional lending ranges from the everyday, uncomplicated borrower to those with more challenging financing constraints. Look for a wholesale lender eager to work with you and your clients to secure them a mortgage, whether they are selfemployed, a borrower with child-support income or some other variation that may require more time and documentation.

many lenders don’t like because of the extra work, and potentially extra risk, it entails. Conventional lenders and the government actually have similar standards on verifying income from alimony or child support, and they include3:

Two Key Solutions Will Create a New Market Opportunity for Wholesale Lenders By Jorge Sauri ith just two strategic modifications to their processes, wholesale lenders have the potential to unlock a vast new market opportunity. The key lies in strategic abandonment and innovation: Lenders must leave behind processes that hold them back and adopt systems that challenge the status quo, all while working in a space restricted by regulations that are often vague and difficult to manage. The mortgage industry, like many others, is experiencing fast growth and big profits, but with

increased growth comes greater competition. To get ahead, lenders must strengthen their relationships with brokers and beat large financial institutions at their own game. By implementing validated loans and compliance automation, lenders can eliminate barriers to success, improve their business functionality and take a greater hold on the housing market than ever before. Identify the problems Facing wholesale lenders today are several issues that can limit success or even render them obsolete in this constantlychanging market. Working with processes that leave them at risk

for fraud, managing compliance with government regulations, and competing in a quickly-growing field are challenges that, while daunting, can be overcome. The basic foundation of any relationship, especially one rooted in finance, is trust. And while the need for â&#x20AC;&#x153;truth in lendingâ&#x20AC;? is now federally-mandated for consumers, honesty and trust between wholesale lenders and brokers is equally important. The fallout from the sub-prime mortgage crisis cast a dark shadow that has been difficult to relieve. Also problematic is the long-term responsibility wholesale lenders alone must shoulder, as the brokerâ&#x20AC;&#x2122;s liability for a the validity of a mortgage

ends when his commission is paid. Lenders need a system to protect them from fraudulent applications and data breaches that harm both their bottom line and their partnerships. Consumers have long-maligned the mortgage process as lengthy and confusing, which prompted enacting of the TILA-RESPA Integrated Disclosure Rule (TRID). While TRID aspired to improve transparency and clarity for homebuyers and ensure a better understanding of the law for those in the mortgage industry, it created challenges for brokers and lenders. With strict delivery and accuracy requirements for loan estimation and closing disclosure, the process now allows very little room for deviation. Brokers shopping around for the best deal for their clients understand the importance of speed in meeting government regulations â&#x20AC;&#x201C; trading documents back and forth is no longer an option. Efficiency is paramount.

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Right now in the mortgage industry, the number of key players is increasing steadily. Today, there are more homebuyers, more real estate agents, more brokers and more lenders. With the focus now on customer experience, lenders must provide a fast, simple, painless mortgage process to edge out the competition. The better they meet customer expectations, the more their business grows. Increasing efficiency through automation is imperative.

longer out of reach. Compared to big banks, wholesale lenders are smaller and more agile, making them better able to adapt to

market trends. As such, wholesale lenders are primed to take more of the market share than ever before.

Jorge Sauri is an entrepreneur, CEO and founder of LendSmart, a unified point-of-sale platform. With more than 20 years of experience in the finance industry, Jorge has an excellent track record of building successful businesses. He can be reached by phone at (512) 6379751.

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Beyond a better business model Adopting a platform that accomplishes both loan validation and compliance automation solutions can be a game-changer for wholesale lenders. The right system can reduce fraud, develop an efficient process based on the lender’s specific requirements, and manage adherence to federal regulations, all leading to reinforced relationships with brokers. Lenders will be able to improve the consumer experience, as well, which has taken second-billing to compliance before automated systems were readily available. It can also make lenders far more competitive with major financial institutions, who typically have technology in place long before smaller entities can afford it. As the price of software continues to go down, and the added value increases exponentially, going digital is no

“By implementing validated loans and compliance automation, lenders can eliminate barriers to success, improve their business functionality and take a greater hold on the housing market than ever before.”

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Define solutions As a whole, the mortgage industry lags behind other fields when it comes to technology adoption. Even with digital signatures and cloudbased storage, there are several steps along the way that involve human interaction—documents are printed and scanned, financial data is retrieved by manual request, and the potential for human error is high. Restructuring the process to include validated loans and compliance automation not only alleviates many issues plaguing lenders, but provides opportunities to tap into a larger portion of the market. Why validated loans? Because the process can be automated without human interference, a validated loan reduces the risk of fraud, enables transparency in the process between brokers and lenders and simplifies the loan process for all involved. The information presented in a validated loan is digitally accessible outside of the documents and is less likely to be compromised. It reassures the lender the application is accurate and facilitates trust in the partnership. On their part, brokers want clarity and efficiency in their interactions with lenders. With application requirements varying from lender to lender, providing brokers with a system that clearly defines and automatically manages those requirements makes for a smoother process without time-consuming backand-forth exchanges. It’s helpful to lenders, too, because loans

validated to their own product matrix are easier to underwrite. When it comes to managing federal regulations, including TRID, implementing compliance automation means big improvements for wholesale lenders. Requirements change over time, but platforms built to update automatically ensure lenders are always current and protects them from unintentional infractions. Compliance automation saves money, eliminating the need for large, costly teams to manually oversee the process. In the past, many brokers preferred to handle loan estimation and closing disclosures themselves, citing a desire to control where the loan is placed. After the mortgage crisis, however, many brokers now concede responsibility for compliance to the lenders. Today, lenders who utilize automated compliance systems are often preferred–because TRID sets such strict deadlines, time is of the essence. The faster a lender can process loan documents and stay in compliance, the happier the customer is with the broker and the greater the chance for repeat business.

New Partnerships Post Dodd-Frank— Third-Party Mortgage Origination By Nicholas DelTorto he mortgage lending environment has changed dramatically since the introduction of the Dodd-Frank Wall Street Reform and the Consumer Protection Act in 2010. Add in “Know Before You Owe” (also known as TRID) to the mix and you have a compliance department’s worst nightmare. With these changes, financial institutions have found themselves struggling to build or maintain in-house mortgage operations while managing to comply with all of the new regulations. Many financial institutions are still considering other options that increase income, reduce expenses, and

improve their value offerings. Inlanta Mortgage, headquartered in Wisconsin—a state that has always been heavily concentrated with community banks and credit unions—recognized an opportunity to partner with institutions to support their mortgage origination departments with their platform and started growing their business as a third-party originator (TPO) three years ago. We saw a need in the industry and wanted to help support the small- to mid-sized banks within our communities. Through a TPO program, local banks are able to outsource their loans for disclosures, processing, underwriting and

funding, while they maintain the relationship and “face” to the depository customer. The bank or credit union still originates the loan and keeps the relationship with their customers by acting as the point of contact and advisor through the entire transaction. However, they do not need a staff of processors, underwriters, and closers, which dramatically reduces the bank’s expense structure and keeps their costs low. Through this partnering, it provides a great opportunity for independent mortgage bankers to expand their business, leverage off their existing platform, and bring in additional fundings that may not have been considered in the past.

Consumers can benefit as they are able to continue working with their local bank in which they hold a current relationship. Consumers also benefit as the bank and the mortgage company are now working together to serve their communities that they previously may have competed in. It is truly beneficial for all parties involved. Before growth as a TPO can begin, you must ensure that all of the appropriate systems and processes are in place to support the new business. Some items of business to consider include: Do you have an LOS system to handle the separate business? Can you support third-party origination online and host the bank’s online loan application. You will need to have dedicated employees throughout your organization who will focus on TPO, such as internal account management and processing

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compensation rules. An additional benefit of these new partnerships is that independent mortgage bankers are pure mortgage enterprises and therefore do not present the threat to the bank or credit union of competing for the depository relationship. They’re not trying to lure seasoned deposit customers away. The changes that came about as a result of the financial crisis have certainly been challenging

for many financial institutions, but one of the benefits has been new partnerships where each party can focus on their specific area of expertise and continue to provide enhanced products and services to the communities they serve. Previous competitors can come together in a mutually benefiting relationship where all parties win: Our customers, our businesses, and our communities.

Nicholas DelTorto is president and CEO of Inlanta Mortgage Inc. Nick’s experience of more than 30 years in proven sales, marketing and operations leadership allows him to help guide Inlanta in an industry that since the financial crisis has faced serious challenges and difficulties. He is past president of the WMBA (Wisconsin Mortgage Bankers Association) and is immediate past cochair of the national MBA’s Independent Mortgage Bankers Committee. 81

TH THAT’S A GREAT IDEA. I’LL RUN IT BY ONE OF THE 20 APP DEVELOPERS ON MY I.T. TEAM. M. - YOU

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cripple a bank’s assets. This leaves the TPO partner free to service its depositor’s needs inhouse while adding a profitable mortgage revenue stream. Having an expanded product offering is an attractive benefit for banks and credit unions that currently have a limited product offering available by working only with one of the governmentsponsored enterprises (GSEs). Many banks and credit unions are quite adept at originating conventional mortgage loans to their client base; however, they may have only worked with Fannie Mae or Freddie Mac exclusively. Inlanta’s TPO program has had success in expanding our TPO clients’ mortgage product offerings to include FHA, USDA, and VA mortgage loan programs. As a government lender and one of the top community-based lending institutions in the state of Wisconsin, our TPO program allows clients to leverage our expertise to capture business that they would otherwise be turning away. The cost of turning away the government mortgage business is huge as many government loan programs assist first-time homebuyers or possible credit challenged customers. These customers are not to be confused with those of the subprime days as most do have certain credit thresholds that must be met. Some of these programs also allow clients to carry slightly higher debt loads. These clients represent the future depositors of the bank and credit union. By assisting them with their first mortgage, it provides the opportunity to start a relationship with a client that could last a lifetime. Finally, this adds an additional stream of fee income. One of the first questions one may hear regarding a TPO relationship is how the compensation is structured. Per RESPA requirements, a bank or credit union must choose from a list of services that they will provide, along with taking the initial application, which will allow for compliant compensation under the agreement. This compensation must be based on total volume, just as it is with LO compensation under Dodd-Frank

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support. The business development side of the TPO channel can be slow since the parties were previously competitors, but once you build trust and credibility, the relationship makes complete sense. There are numerous benefits to your partners by participating in your TPO program. As mentioned before, one major benefit is lower cost of origination for the bank. A TPO program allows local banks and credit unions to leverage the systems and processes of a leader in mortgage origination, without the significant staffing costs. The TPO will prepare and distribute all mortgage loan disclosures to all loan applicants on behalf of the TPO partner. This will not only reduce compliance risk but also relieve the financial institution from employing resources to perform these tasks. In addition, the TPO program offers processing services through a dedicated team of processors who are wellversed in all programs and able to process the file from start to finish. Eliminating the need to staff a processing department or by removing this task from the bank loan officers’ current duties allows the loan officers to focus on securing more sales and serving the depository customer. Underwriting responsibilities are also handled, which lessens the burden of the partner’s need to employ another department. A TPO program also reduces compliance risk for the bank. The cost of mortgage origination in the area of compliance has dramatically increased with all of the new rules instituted by DoddFrank and enforced by the Consumer Financial Protection Bureau (CFPB) over the last few years. If a lending institution is not originating a high volume of mortgage loans, the cost of staffing a compliance department can readily erode the revenue realized through mortgage origination and distract the compliance department from other areas of the bank’s compliance demands. The new regulations can carry stiff penalties for errors in the mortgage process which could

Carpe Diem: How Digital Origination Strategies Can Support the Broker-to-Banker Transition By Jeff Bode or brokers looking to make the transition into mortgage banking, the timing couldnâ&#x20AC;&#x2122;t be better. Depository lenders are increasingly giving up market share to non-bank mortgage lenders, and with the current rate environment, non-bank lenders are able to offer borrowers extremely competitive rates. Whatâ&#x20AC;&#x2122;s more, advances in digital origination technology are poised to reduce the cost to originate, which eases the startup capital requirements needed to make the leap. These cost savings are significant, as one of the biggest challenges to making the broker-to-banker transition is establishing the necessary net worth to qualify for licensing and a decent warehouse line of credit. With access to the right technology, and the right correspondent partner, brokers can make this transition more easily than ever. For years, the mortgage

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industry has waited with cautious trepidation for the eMortgage to become a reality. Technology and regulation have finally caught up with the industryâ&#x20AC;&#x2122;s vision, but many are still reluctant to take the leap. Part of this reluctance stems from the perception that investors and/or warehouse banks do not allow eClosings or wonâ&#x20AC;&#x2122;t purchase an eMortgage. This is false. There are numerous investors that have established guidelines for eClosing and eMortgages, and two of the biggest mortgage investors in the country, a.k.a. Fannie Mae and Freddie Mac, have been pushing lenders for years to adopt eMortgage strategies. On the warehouse side, most banks have been reluctant to adopt an eWarehouse strategy because the efficiencies inherent in the eMortgage process would reduce the amount of time loans sat on the warehouse line before being purchased,

thus cutting into the bankâ&#x20AC;&#x2122;s revenue from interest and fees. In recent months, several forward-thinking warehouse banks like FirstFunding and Merchants Bank of Indiana, have overcome this reluctance and are poised to provide funding for and purchase loans closed via eClosing and eNotes. Though the industry hasnâ&#x20AC;&#x2122;t fully dived into the complete eMortgage, it also hasnâ&#x20AC;&#x2122;t been totally reluctant to adopt digital origination strategies either. According to the 2015 Xerox Path to Paperless Survey, nearly 80 percent of survey respondents indicated they were utilizing eDelivery to send disclosures and other documents to borrowers. In addition, almost 75 percent said they had implemented paperless origination and underwriting processes, and just over 70 percent are incorporating eAcknowledgement and eSignatures with eDelivery of disclosures. More than 60 percent of respondents are

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delivering closing documents to their settlement agents electronically, and more than half are eDelivering closed loan files to investors. These numbers arenâ&#x20AC;&#x2122;t that surprising as many lenders have adopted these strategies in order to comply with the TILA-RESPA Integrated Disclosure (TRID) timing requirements, and data from the survey backs that assumption up, as 92 percent of respondents said they expect to see an increase in their use of eDelivery because of TRID. However, thereâ&#x20AC;&#x2122;s a very clear point in the process where digital origination strategies drop off. Based on the survey, only five percent are utilizing eDelivery with eSignatures at the closing table (i.e., eClosing), and just four percent are executing a complete eMortgage where the promissory note is being signed electronically (i.e., eNote). For brokers making the transition to mortgage banking, this presents a significant opportunity to differentiate themselves in the market while also gaining much-needed efficiency. Expense management is a critical concern for emerging mortgage bankers. Start-up costs and overhead can quickly eat into available capital, which can have a negative impact on overall net worth and impede the ability to increase production. Using the full complement of digital origination strategies (eDelivery, eSignatures, eClosings and eNotes) eliminates many of the â&#x20AC;&#x153;sunk costsâ&#x20AC;? inherent in the traditional closing process, such as shipping and labor expenses for the sole purpose of organizing and delivering documents to the investor. This frees up capital that can be invested in more missioncritical areas like quality control, underwriting and compliance. Speaking of compliance, this is another area that can torpedo an emerging mortgage banker. Anytime you are a

establishes a productive relationship with investors and the warehouse provider and enables emerging mortgage bankers to rise up the ranks to achieve full-fledged mortgage banker. While the mortgage bankers have been hesitant to adopt eMortgage strategies, they are not pessimistic about the future of the eMortgage in mortgage banking. In the Xerox survey mentioned earlier, more than half of all

respondents said they believe eMortgages will account for at least half of all loan production within four years, which is a nearly 55 percent increase over responses to that question in 2014. Clearly, the industry sees the value in digital origination, even if it hasn’t implemented it in full force. For the forward-thinking, aspirational-minded mortgage broker, now is the time to make the digital leap into mortgage banking.

Jeff Bode is owner and CEO of Addison, Texas-based lender Mid America Mortgage Inc., which operates in the retail, wholesale and correspondent lending channels. Jeff can be reached by e-mail at Jeff.Bode@MidAmericaMortgage.com. 83

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turn times and eliminates the errors associated with manual, paper-based lending. Of the two kinds of warehouse relationships, mandatory delivery is the far more profitable of the two for the mortgage banker. The major deciding factor in transitioning from best-efforts to a mandatory delivery engagement is the emerging mortgage banker’s ability to demonstrate operational efficiency, sound fiscal management and foundational understanding of mortgage origination–all of which can occur much more easily when digital origination strategies are used. Once the type of engagement has been established, the emerging mortgage banker must turn its attention to managing the warehouse pipeline. What digital origination strategies can offer in this regard is the ability to dramatically decrease the number of days loans sit on the warehouse line between closing and purchase. Not only does this save money in the form of reduced interest and fees, but it also enables the emerging mortgage banker to do more with less. For example, an emerging mortgage banker with $250,000 in net worth could secure a warehouse line worth roughly $3.75 million. Because most loans sit on a warehouse line for around 20 days due to the inefficiencies of the current origination process, the banker has to be conservative with how much of the line is used at any given time. By leveraging digital origination strategies, including eNotes, this same mortgage banker could achieve the same volume using a warehouse line one-fifth the size (i.e. $750,000) because of the potential to reduce that turn time from weeks to a day or two. To put it another way, that mortgage banker could originate five times the volume without needing an increase in their line of credit. That kind of efficiency and success is what

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beginner at something, having the time to self-correct can mean the difference between success and failure. When a correspondent lender can submit their loan file information to the investor electronically, that gives the investor more time to review the loan prefunding, and should errors be found, the lender then has time to address the errors before reaching the closing table and potentially having the investor reject the loan. Furthermore, most eSignature platforms have built-in quality control mechanisms to ensure every document is signed where and how it should be, and with eClosings, all closing documentation is stored electronically, thus jettisoning several menial post-closing tasks that can have significant implications for compliance. If expenses and compliance represent two of the three legs emerging mortgage bankers need in order to succeed, managing relationships with investors and warehouse banks is unequivocally the third. Metrics such as loan quality, pull-through rates and days on the warehouse line must be continuously managed to ensure small issues don’t become larger problems that negatively impact these critical relationships. As previously mentioned, digital origination technology can have a demonstrable impact on loan quality, but, it can also aid in pull-through and warehouse line management. Most warehouse banks will start off with a best-efforts engagement with emerging mortgage bankers, as not every broker is able to make a successful transition into mortgage banking. As the emerging mortgage banker is able to achieve high pull-through rates and demonstrate consistent loan quality, they will garner better pricing, though those incentives are going to be capped. Digital origination strategies aid in achieving a high pull-through rate by creating a lean, fully optimized origination environment that supports quick

Oh No! I Just Stepped in Some TRID By Eric Weinstein

ell, it has been a while since TRID started in October of 2015, and the world did not come to an end as the pundits predicted. I was just looking over some past articles back before it started and none of the worries everyone had has come to fruition. The fact of the matter is that we human are pretty adaptive mammals. If tomorrow a new regulation required mortgage broker loan officers to wear a banana peel on their head while taking a loan application (banks are excluded, of course), somehow, someway, we would

make it work. It is what we do. As a loan officer pounding the mean street, it has not affected me much in the least. Sure, the three day Closing Disclosure (CD) review period is a hassle, but all in all, I think it is great that the borrowers get to review the numbers three days before closing. I was so sick and tired of giving the borrowers the amount to bring about an hour before settlement because the bank was running behind. And now the Loan Estimate (LE) has to be pretty tight. I was always pretty good with the old Good Faith Estimate (GFE), but today, other loan officers are required to be just as meticulous and anal retentive … I love it.

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“If tomorrow a new regulation required mortgage broker loan officers to wear a banana peel on their head while taking a loan application (banks are excluded, of course), somehow, someway, we would make it work. It is what we do.” I must admit, in the beginning, the wholesalers did a pretty poor job getting their systems in place for the initial roll out. Everyone had a different system, conflicting rules and a strange diverse way of interpreting the same law. But, now it is all straightened out. I just do this, instead of that. Who cares? I can’t even remember how I used to do it before 2015. No, don’t take this that I am not complaining. I am an old man … it is in my nature to complain about everything. With every loan I do now, I have to send out this ridiculous e-mail to the borrower: “Tomorrow or the next day, or whenever the stupid bank gets around to it, you will get an e-mail from ‘ConformX’ referencing this loan. Do not delete it. You must click on the link to create an account and then later click on another secure e-mail to acknowledge the forms. No need to print out, sign or send anything back. Just ‘acknowledging’ it is enough. If you are not sure, call or e-mail me. I don’t want you clicking on random SPAM and getting a virus either. If you don’t do this, it will delay the loan.”

Anyone over the age of 12 using e-mail since birth would understand these instructions, but for anyone over 55, it is like asking them to perform major brain surgery. It turns out, the hardest thing about TRID was the wholesalers going to a secure email system for the public. Let me tell you, the public is DUMB! I can’t tell you how many borrowers cannot figure out how to acknowledge the LE when it is sent to them. It is either “too hard,” “too confusing” or “I never got it.” Lord give me strength. It is like Roseanne Roseannadanna used to say on Saturday Night Live, “If it ain’t one thing, it’s another.” And now for something completely different. If you ever wondered what I look like, I have a major disappointment for you. You can now see my mug on several recent episodes of Hash it Out (sponsored by REMN Wholesale) where I’m a guest interviewed by Mortgage News Network’s Andrew Berman. You can find these episodes on MortgageNewsNetwork.com. Feel free to share it or comment. Throw popcorn at your monitor, boo, hiss, that’s fine. As long as you watch it.

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

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When you partner with UWM, you get to make some very bold claims. Thatâ&#x20AC;&#x2122;s because our people, our products and our capabilities all become yours. So go ahead and talk about your dedicated Account Executive, your own team of Underwriters, your cuttingedge I.T. Team, your Compliance Team, your Marketing Team and more. And donâ&#x20AC;&#x2122;t forget to mention your exclusive low rates, your fastest turn times in the industry and the combined expertise of the 1,900 mortgage professionals on your staff. Of course, YOUNITED with the #1 wholesale lender in the nation â&#x20AC;&#x201D; and make lending easier by making our team your team today.

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SEPTEMBER 2016 n National Mortgage Professional Magazine n NationalMortgageProfessional.com

Planning Ahead the Impacts Risks of HM

ad for s and HMDA

By By Rich Rich Gagliano Gagliano

he CFPB’s Home Mortgage Disclosure Act (HMDA) changes mandate that new or modified data points be collected during the residential mortgage loan origination process, and require more frequent reporting than many lenders have had to do in the past. As with most major initiatives, the new requirements will certainly produce significant process impacts for lenders, borrowers and external vendors, along with a number of risks that are associated with the implementation phase. While the exact nature of those risks will vary from institution to institution, there are four broad categories that are impacted by the expanded HMDA requirements, with dependencies and risks in each category as follows:

I. Expanded data capture related to applicants In this category, important changes to loan applications will be required to accommodate the 48 data points that must be captured, including 25 newly created points; 12 points that were modified from their previous form, and those that continue to be required, without changes. One key area of change is the reporting of ethnicity and race into more granular categories that are better aligned with the disaggregated categories utilized by the U.S. Census Bureau. For example, identifiers such as Hispanic or Latino that have been used in the past will be disaggregated into groups such as Mexican, Puerto Rican, Cuban, etc. This will allow federal agencies to take a deeper look into the way these various groups are served by the mortgage industry. In addition, the updated HMDA data capture points will include the age of applicants to evaluate how the industry is serving the country’s distinct age groups, such as Millennials, Baby Boomers and others. Debt-to-income information for the applicant, as well as the results from Automated Underwriting Systems, will also be reported. II. Data related to the property The current loan application

form asks for Property Type, but going forward, Method of Construction will replace the Property Type description, and the number of units associated with the property will also be collected. Other required information includes the value of the property that is used to secure the loan. III. Data related to loan features All loans that are ‘dwelling secured’—including home equity lines of credit for the first time—will be reported on beginning Jan. 1, 2018. Other elements that will be reported include loan terms; costs such as points and fees or origination charges; discounts, credits, and introductory rate periods, non-amortizing features of the loan, and so on. IV. Universal loan identifiers for each loan Each loan will be associated with its own Universal Loan Identifier (ULI) on or after Jan. 1, 2018, for covered transactions. The ULI consists of the lender parent company’s LEI, which is obtained from a Web site, plus 23 characters which are unique to the transaction and a two-character check digit. The ULI will be associated with a loan from cradle (initial application) to grave (final disposition of the loan), as well as through subsequent HMDA reporting events such as loan purchases. This means the ULI for a loan must always be in the system of record. The primary unknowns Some of the data requirements associated with the new Uniform Residential Loan Application (URLA)/ Fannie Mae Form 1003, such as the collection of Race, Ethnicity and Sex, cannot be collected before Jan. 1, 2018. However, while the URLA has already been redesigned to accept this information, the GSEs have said that lenders will not be required to start using the updated applications by Jan. 1, 2018, though lenders may do so if they so choose. More information on the deadline by which lenders must switch over to the new URLA will come at some future point. Regardless of whether or not lenders use their current

forms or the newly redesigned forms, the expanded HMDA data elements must still be captured and reported as of Jan. 1, 2018. If systems and processes are not ready by then, alternative measures must be identified and planned for to accommodate the expanded HMDA data collection on day one. For example, lenders may need to create and implement an Addendum form to accompany the loan application in order to capture the required government monitoring information on time. And of course, technology vendors will be working closely with document providers and the GSEs to help ensure that everything that CAN be ready IS ready by Jan. 1, 2018. Nonetheless, if an addendum document is needed in order for lenders to deliver the expanded/modified HMDA information on time, the data files will have to be slightly different to accommodate the different decision engines used by the GSEs. This means that lenders must be prepared to produce two data files— one for Fannie Mae and another for Freddie Mac—to send along with the GSEspecific loan application. Other impacts In addition to these considerations, each lender, technology partner and document provider will likely need to be prepared for a range of other impacts as well. For example, lenders with a loan origination system that is used by their internal loan officers must have a user interface (UI) in order to utilize that system. The lender may also have an internal point-ofsale system that is independent of their fulfillment system—requiring a second UI. Then, if the lender provides a system that supports their wholesale brokers, a third UI must be supported. And if consumers are enabled to complete and submit their applications directly to the lender, a fourth UI may be needed. It is critical to keep in mind that for each section of the 1003—where data is being captured in completely different ways—there is likely to be an impact to each of continued on page 97

Leading in the AMC Space: C reports its managing for America’s lenders.

hat does it take to grow a company in the mortgage business? It takes vision, which can be challenging to develop for yourself when the entire mission for your part of the industry was basically hard coded into legislation enacted after the financial crash. For appraisal management companies (AMCs) stuck between lenders that would rather handle the job in-house and appraisers that would rather

not work through a middleman, creating a vision that can lead to stellar growth can be very challenging. But, it’s not impossible. For a case in point, look no further than Birmingham, Mich.-based Class Appraisal. Class has doubled the size of its business over the last 12 months, making it one of the fastest growing AMCs in the industry. Currently employing about 85 professionals, the company expects to hire another 50 additional staffers over the next six months. The

firm is currently serving eight of the nation’s top 10 wholesale lenders with appraisal orders placed nationwide, among them United Wholesale Mortgage (UWM), Finance of America and Freedom Mortgage. I spoke with Jon Tallinger, vice president of sales and marketing for Class Appraisal and one of the company’s first employees, about what it takes to be a leader in the AMC space today and what it takes to deliver excellence along with the real estate valuation

It’s about culture When Tallinger started with the company in 2009 Class wasn’t an industry leader. He admits that there were a lot of lessons learned in the early days. Over time, the management team matured and began fostering a culture that went beyond just connecting lenders and appraisers. Since then, Tallinger says, every single measurable metric, across the board, has improved. “Our current leadership has fostered a very good culture,” Tallinger said. “Our people like working here and engaging our appraisers. We have built great relationships with these appraisers.” Class Appraisal’s culture is built on the following factors, roughly in this order: Quality, rewarding employees for what they do and removing limitations

Class Appraisal most companies build into job descriptions. As Tallinger describes it, Class has found ways to provide incentives for just about any employee who wants to go above and beyond their job description. It removes barriers and it encourages employees to do what it takes to earn more money. Tallinger isn’t looking for every employee to hit a home run every day, the game Class is playing is measured in inches. “Even as our volume has increased, our performance metrics, have all improved,” Tallinger said. “It’s a matter of gaining all those little inches, here and there.” A good example can be found in the company’s work assignment timelines. When a new order comes in, the company tracks every metric that relates to that order. The first thing they check is the amount of time it takes to get

the order out to the right appraiser partner in the field. There is a lot of technology behind making a compliant assignment, and the job isn’t done until the appraiser accepts the work. In the beginning, an order that came in at 9:00 p.m. would take about 14 hours to get assigned. Not anymore. Today, Class can get a job— even one that is received late at night—out to the right appraiser, on average, in about nine hours. “Saving that five hours on the 10,000-plus reports we’re generating each month is huge,” Tallinger points out. And that, he says, hits the bottom line. Tallinger says Class has cut back the time it takes to complete jobs in every department. He credits this to better processes, better technology—much of which the company develops itself inhouse—and empowering each employee to do the best possible job.

By Rick Grant

Permission to excel While a company’s culture will have an impact on its processes, the technology it chooses and how it approaches the business from a strategic perspective. But by far the most significant impact of corporate culture is felt by its people. At Class Appraisal, the culture gives its team members the opportunity to find their best fit and then do their best work. The approach is making a difference in its business. One place that difference is very apparent, to management and the company’s customers, is in the quality of the product they deliver. “The most important part of managing our business is making sure that we’re tracking the quality of the product we’re delivering,” Tallinger said. “Quality control can be a monotonous job, which makes this one of the most difficult departments, especially given the extremely low tolerance for error.

But with the right incentives, we humans can do things we never thought we could.” Out of the 85 or so people employed by Class Appraisal, 22 of them work in the Quality Assurance Department. It is, according to Tallinger, one of the most important operations the company provides for its clients. “Our quality control department is very important,” Tallinger said. “Generally, we’re looking for employees here to touch about 30 to 35 appraisals per day. We track the quality of every single report. Under a new program, if the employee wants to work harder and still meets or exceeds the quality threshold, the company will reward them for doing so.” It should come as no surprise that Class Appraisal’s QC department employs some of the most productive employees in the firm. But for every employee continued on page 99

The NAPMW Report

BY KELLY HENDRICKS

Honing in on What Young Women Want s an avid supporter of women in the mortgage industry, the National Association of Professional Mortgage Women (NAPMW) knows that by diversifying our membership as much as possible, we can represent and support women through all walks of life, providing role models and the opportunity to build lifelong relationships that extend beyond the professional world. It is no secret that female Millennials are possibly our biggest target for membership in the coming year. They themselves are attracted to organizations that have more diversity, specifically ones that support women in business and leadership positions. According to PricewaterhouseCooper’s study, “The Female Millennial: A New Era of Talent,” female Millennials will make up 25 percent of the global workforce by 2020, and that these women “are more highly educated and are entering the workforce in larger numbers than any of their previous generations.” Fortunately, we benefit by having an association that is run by more women than men, giving us an advantage when it comes to our target audience. But just like the rest of the mortgage industry, it has become apparent that attracting Millennials involves more than just diversifying our association’s leadership and membership. PwC notes that “57 percent of female Millennials said they

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would avoid working in a particular sector solely because they believe it had a negative image.” Unfortunately, the financial services industry stands at the top of the list as the least appealing industry for millennials, even to this day. This shouldn’t be a surprise to any of us, and may seem like a big set-back, but we have a few things working for us in these stats. While Millennials value reputation and image as a reason for taking or not taking a job, according to PwC’s 2013 report, “Millennials at Work: Reshaping the Workplace,” 52 percent of our young generation are most attracted to jobs that offer opportunities for career progression, with 44 percent looking for competitive wages and other incentives. These two preferences rank well above the importance of reputation and image. So we have our “in” with Millennials. If we can offer them vast amounts of leadership training and career-building opportunities, coupled with a competitive salary, then we can build an attraction to the mortgage industry and create an influential work culture unlike any that has come before us. But first, we’ve got our own work to do before we can really offer amazing professional benefits to these young people. Ask, and ye shall receive As a frequent conference-goer, the topic of Millennials always brings a crowd of mortgage professionals packed in conference rooms. This year’s NAPMW Annual was no

different, as we decided to host an impromptu session on Millennials in our workforce and how to get them into NAPMW. Many of our leaders did introduce new training and policy changes that have taken effect inside their own companies, and how NAPMW could mimic those at networking events and leadership seminars provided by the organization. Overall, it was a great session, with a lot of input from our membership. But let’s not sugarcoat it. Those discussions, whether at NAPMW Annual or any other conference I’ve attended, also seem to involve a little bit of incredulity and distance from the generation that many of us and our peers have raised. As much as we like talking about bringing Millennials into the mortgage industry, we also talk just as equally about how different they are from us and issues we have found in working with them. “They’re entitled.” “They want to be praised.” “They want more time off.” In particular, as I sat in the NAPMW Annual session on Millennials, listening to what my peers had to say, I noticed we did have a couple Millennials in the room, sitting quietly, maybe waiting for someone to ask for their input? But nobody did. We talked about how to attract Millennials, and we said our two cents on how we feel about them, but we didn’t even ask the Millennials in the room for their thoughts. This is where we need to improve. If we want to work well with Millennials and bring them into our industry, we have to

change the way we look at them. And trust me, we want to, because by 2020, 50 percent of the global workforce will be Millennials, and in order for us to stay ahead of the game, we need to recruit good players to keep us at top performance. Team players Merely changing our perception of Millennials could be the key to building a work environment that draws them towards our companies and associations. Take PwC for instance. They look at millennials differently than we often do. PwC notes that female Millennials are far more confident than any female generation before her and sees herself in leadership positions, with 49 percent believing they could rise to senior positions within their current employer. They also want their work to have purpose, to contribute something to the world and be proud of their employer that stands behind them. PwC doesn’t look at those stats and say, “Millennials are entitled.” Instead they say, “Millennials are driven, confident, and ambitious and we want them on our team.” Likewise, their most valued opportunities on the job involve the chance to work with mentors and strong coaches who will give them critical feedback on work performance. And if they do well, a simple “thank you” would suffice. Again, PwC doesn’t see this as “needing praise,” but merely a chance to instill confidence and reward good deeds by spreading positivity throughout the workplace. Isn’t that what everyone wants?

Lastly, they do want more work/life balance, but I’m not going to even look at the PwC report and just say, so do I. I also would love to spend more time with my family and kids, as this makes me truly happy, and usually more productive when I am working. In all honesty, I don’t see these as Millennial traits, I see these as human traits. When I first came into the workplace, I was eager to learn, do well, and saw myself one day sitting in a chair, making decisions that could positively impact my peers and industry. How fortunate are we to have a generation that wants the same things and who are courageous enough to be honest about it? Shape of things to come Maybe we’ve been looking at this all wrong. Instead of looking at Millennials as a workplace alien, we should build upon the attributes that we all share. Because although the PwC titled their 2013 report, “Millennials at Work: Reshaping the Workplace,” it is in fact us who will be reshaping it for them, and ultimately, reshaping it for ourselves. While Millennials hope to one

“But just like the rest of the mortgage industry, it has become apparent that attracting Millennials involves more than just diversifying our association’s leadership and membership.” day have the chance to make a positive impact on their industry, we now have a chance to actually do that by creating a workplace that advocates for diversity, encourages professional growth in leadership and business, and builds strengths out of weaknesses. We can build performance management and career progressive systems that open a path for not just Millennials to grow, but for us to learn as well. Additionally, we’ll not only be molding the next generation of mortgage

professionals, we will also get great insight into new opinions, ideas, and different ways of looking at our companies and associations. Here is where we have an opportunity to make the kind of work environments we wish we had when entering the

workforce. Because at the end of the day, wouldn’t we all like to do our job well, grow and climb up the ladder, and be able to spend time with our families in the process? Millennials are not that different from you and me, but growing up with the Internet means their world view is often broader and they’ve often had access to anything they want at the drop of a hat. This means they aren’t afraid to look elsewhere if their needs are not met in the workplace. Meeting those needs by simply collaborating and figuring out what we would all like in our ideal work cultures is the key to pulling them in and keeping them around. So instead of focusing on the word “Millennial,” let’s focus on our similarities and how to recruit good talent by creating a work environment where new hires and long-term employees will benefit for many years to come.

Kelly Hendricks is president of the National Association of Professional Mortgage Women (NAPMW) and is vice president at St. Louis-based Delmar Financial. She may be reached by phone at (314) 398-6840 or e-mail President@NAPMW.org. 91

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CampusT hen nmpU was first conceived as an idea, we threw around a lot of different possibilities as to what we would be able to offer. The goal from the start was to be able to provide training, coaching and success resources to assist any originator to succeed at the

highest possible level. As nmpU is heads into its third month since first launching, we have been able to accomplish more than first anticipated. From enhancing the existing coaching program, to offering a whole bunch of new resources from our industry partners, we have been able to build an incredible arsenal of easy-to-use tools and services that will

quickly help any originator produce more business. We couldnâ&#x20AC;&#x2122;t be more excited about our brand-new relationship with MEC and the discounts that we are able to offer on their NMLS pre-licensing courses, CE programs, and test prep programs. MEC is a leader in this arena, and we are fortunate to have been able to align with them to present our readers with the

most affordable licensing solutions. Additionally, the launch of our new enhanced coaching platform creates the opportunity for any originator to receive personal success coaching at a price point that works with almost any budget. From the nationâ&#x20AC;&#x2122;s top producers, to originators just starting out, we are building the right coaching team to be able to

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accommodate your specific needs for business growth. The future for nmpU is even more exciting. We are continuing to add resources and services from within, as well as from our industry partners. Regardless of whether someone is an originator, branch manager, account executive or company owner, our mission is to be able to provide whatever it is you

By Ron Vaimberg

would need to elevate your business or that of your sales team. Because of the power behind National Mortgage Professional Magazine and nmpU, we have been able to negotiate discounts on many services so we can save our readers money. We have a simple belief that if you are looking to invest in yourself to grow your business, you should

ideas or thoughts that you would like us to attempt to add to our resources by e-mailing me at RonV@NMPMediaCorp.com. We have many more things slated to become part of nmpU before the end of the year, and we will be sure to announce them as they become available. To your success â&#x20AC;Ś

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sTalk

be able to do it the most costeffective manner necessary. As much as we are always looking to add more services, we also invite anyone from the industry to suggest alliances, products or services that you would like to see us make available through nmpU. I encourage you to feel free to reach out to me directly with any

MBA’s Mortgage Action Alliance A Message From MAA Chairman Fowler Williams he Mortgage Action Alliance (MAA) is a voluntary, nonpartisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association (MBA). As the House and Senate return from congressional recess for the final push to Election Day, mortgage-related regulatory developments continue, including the implementation of the Telephone Consumer Protection Act and actions by the U.S. Department of Housing & Urban Development (HUD) related to downpayment assistance and Home Equity Conversion Mortgages (HECMs). In response to a push by the Mortgage Bankers Association (MBA), Federal Housing Finance Agency (FHFA) Director Mel Watt announced that the new Uniform Residential Loan Application would not ask borrowers for their language preference—a key win for lenders. On the legislative front, President Obama signed into law HR 3700, a HUD reform bill that requires FHA to streamline its condominium guidelines. With election season fully underway, you can use the new feature on MBA’s Advocacy Action Center, the Elections Page to easily look up the federal and state candidates running for office in your area along with information about the election, and even register to vote. Visit Action.MBA.org to visit the Elections Page and try it out yourself! You can also connect with MAA on social media. Check out MAA’s Facebook page. Stay updated on current events in Washington, D.C. and your state capital. We will post the latest political news, as well as MAA “Calls to Action.” You can also join MAA’s group on LinkedIn to connect with fellow advocates and expand your network! The Mortgage Action Alliance recently sent out a letter asking MAA members about any personal relationships that they have with their elected officials. These relationships can be incredibly valuable to our advocacy efforts on behalf of the industry. Please consider joining MAA and helping us leverage your personal relationships to advocate on behalf of our industry. The industry’s ability to navigate and manage these policy challenges is critical to our efforts in serving consumers around the nation. Visit Action.MBA.org to learn more. Getting involved with MAA allows industry professionals to play an active role in how laws and regulations that affect the industry and consumers are created and carried out by lobbying and building relationships with policymakers. It only takes a moment to get started, and you do not have to be a member of MBA to enroll. The larger the group, the louder the voice! If you would like to run an MAA campaign, please contact Peter Shapiro at (202) 557-2933 or e-mail PShapiro@MBA.org to receive an Enrollment Campaign Kit and learn more about how you can engage your colleagues and employees in MBA’s advocacy programs. Real estate finance industry professionals who wish to join or learn more about MAA can do so at Action.MBA.org. If you have any questions regarding MBA’s advocacy programs, please contact MBA’s Director of Political Affairs Annie Gawkowski by phone at (202) 557-2816 or e-mail AGawkowski@MBA.org.

Fowler Williams is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. He is also president of Atlanta, Ga.-based Crescent Mortgage. He may be reached by phone at (800) 851-0263 or e-mail FWilliams@CrescentMortgage.net.

appraisals, avms, bpos drives by, assessing the value from the outside. l The interior BPO: The broker gains access to the interior of the property and performs an assessment. BPOs are useful particularly in cases of national mortgage lenders who may not have a familiar valuation professional near the property. Lenders also may use them to help price real estate owned assets. Unnecessary risk The Appraisal Institute believes that BPOs should not be used as the basis of lending decisions. This practice creates unnecessary risks for consumers and lenders, and its use for any lending transaction should be prohibited: l BPOs contain an inherent conflict of interest: The primary role of the real estate agent performing the BPO is to facilitate a sale of real property, not to objectively develop an opinion of value. l BPOs are a largely unregulated service: BPOs and the agents performing them often are not subject to effective federal and state oversight. While real estate agents performing BPOs usually face no legal ramifications for noncredible and unreliable price opinions, banks using largely unregulated valuation services are exposed to compliance and audit risks. Institutions relying on potentially non-credible and unreliable BPOs for real estate valuation usually have no effective legal recourse in the event of fraudulent price opinions. l BPOs undermine the banking system: The use of BPOs for real estate valuation undermines the fiduciary responsibility of banks to government agencies, insurance companies, borrowers, investors and stockholders to obtain market value of distressed assets. Appraisal Institute professionals frequently report distressed assets sold well below their actual market value. l BPOs increase risk: Bank

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regulatory agencies are increasing consumer and lender risk by permitting regulated financial institutions to use BPOs for transactions involving loans of $250,000 or less. This high threshold results in most mortgage loans in the U.S., and virtually all loans in thousands of low to moderate income communities in America, potentially being valued by unregulated individuals with a financial stake in the sale of the property. The banking agencies are mistaken to conclude that BPOs are sufficient to ensure the soundness of the deposit insurance funds. Appraisers can provide a range of services that serve the same purpose as a BPO. Data pulls, desktop appraisals and AVMassisted appraisals are all services that can be provided by independent and objective appraisers in accordance with enforceable standards. Confidence to lend Regardless of the sophistication of the software or the skill of the real estate broker, AVMs and BPOs cannot reach the credibility and reliability of an appraisal conducted by a qualified, competent appraiser. These professionals have the training and expertise to produce clear and concise valuations that are unbiased and impartial, and that are based on physical examinations, statistics, facts and other relevant information. In the case of Designated Members of the Appraisal Institute, the designations MAI, SRPA, SRA, AIGRS and AI-RRS represent advanced knowledge, and a commitment to strict professional ethics and standards that assist in giving financial institutions the confidence to lend. AMVs and BPOs can be useful tools in real estate lending and serve specific functions. Neither, however, is comparable to real estate appraisals in developing values for lending decisions. As a long-term result, professionally prepared appraisals provide lenders with the confidence to lend, in any type of market.

Scott Robinson, MAI, SRA, AI-GRS, is the 2016 president of the Appraisal Institute, the nation’s largest professional association of real estate appraisers, with nearly 20,000 professionals in almost 60 countries throughout the world.

heard on the street U.S. Bank to Adopt Black Knight Financial’s Tech Solutions

Black Knight Financial Services (BKFS) has announced that U.S. Bank, the fifth largest commercial bank in the United States, has signed an agreement to implement LoanSphere Exchange, an open technology platform that provides integration, data management, decisioning support and workflow management through a 24/7 data exchange. Delivered by RealEC Technologies, a division of Black Knight, Exchange is an innovative, online platform that electronically connects lenders with more than 20,000 of the mortgage industry’s service and solution providers. Through Exchange, lenders gain a fast, secure way to aggregate data and centralize ordering of settlement services, such as title, closing, appraisal, credit, flood, fraud, verifications, fees and more. The platform offers event-based workflow and document services, including secure delivery, indexing and data extraction (OCR). “Exchange offers us one powerful centralized resource to facilitate connections with our individual service providers and to eliminate paper and manual processes,” said Mike Oakes, EVP of Retail Operations of U.S. Bank. “By using Black Knight’s Exchange technology, we hope to increase our operational efficiency, improve milestone tracking and provide for a better borrower experience.” U.S Bank also uses Black Knight’s industry-leading loan servicing system, LoanSphere MSP, a scalable, innovative, endto-end system used by financial institutions to manage all servicing processes, including loan setup and maintenance, escrow administration, investor reporting, regulatory requirements and more. In addition to MSP, U.S. Bank uses several of Black Knight’s LoanSphere default solutions, including Bankruptcy and Foreclosure, an enterprise workflow application to support the bankruptcy and foreclosure processes; and Invoicing, a Webbased solution that streamlines billing and invoicing. Both of these default solutions are integrated with MSP. “We are pleased to help U.S. Bank further streamline its

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mortgage origination process, standardize the user experience for all providers involved and help the bank reduce risk with Exchange’s proven ability to support investor loan-quality requirements,” said Dan Sogorka, president of the RealEC Technologies Division. ReverseVision Partners With Informative Research on Expanding Credit Report Options

ReverseVision has announced that it has completed its integration with Informative Research, making it faster and easier for users of RV Exchange (RVX) loan origination software (LOS) to order Premier Credit Report, Informative Research’s version of the tri-merge credit report that has become the mortgage industry standard. Credit information supplied by Informative Research is available in RVX as of the system’s June 16 update. “With this integration, Informative Research and ReverseVision assure their mutual customers unmatched access to critical credit data needed for originating reverse mortgages. Further, the integration helps support our unceasing commitment to improving lender workflow and streamlining credit reporting capabilities,” said Informative Research Chief Operating Officer Stan Baldwin. Founded in 1946, Garden Grove, Calif.-based Informative Research is dedicated to providing the industry’s most accurate and

complete residential mortgage credit reports and is renowned for its innovative technology. For decades, Fannie Mae and top lenders have trusted Informative Research and its proprietary Keystone logic system, which allows individual reports from the three credit bureaus to be merged into an easily understood, accessible format with duplicated or incomplete listings removed for lender efficiency. “Through this integration with Informative Research, RVX users will experience ease-of-access to the critical credit information required to identify qualified borrowers,” said ReverseVision Vice President of Sales and Marketing Wendy Peel. RVX is San Diego, Calif.-based ReverseVision’s flagship product. The LOS serves as a centralized exchange, connecting all participants in the lifecycle of a reverse mortgage by allowing them to log in to a single system to share documents and information for each part of the loan process. JTS & Company Celebrates Milestone Anniversary

JTS & Company, a Mississippiand Alabama-licensed mortgage company, has announced the celebration of its 20th year in business. JTS & Co. began operations in 1996 when Jeff Farnham, the company’s founder and president, opened a small office in Columbus, Miss. JTS & Co., offers mortgage loan products for consumers purchasing or

refinancing a home, and with its staff of eight employees, conducts business in both Mississippi and Alabama. “One thing that sets us apart is that our mortgage team works every day to make a difference in our clients lives,” said Farnham. To kick off its anniversary celebration, JTS & Co. will be announcing homebuyer workshops beginning this fall. Mortgage Professionals to Watch l ACES Risk Management (ARMCO), a provider of financial quality control and compliance software, has announced the hiring of Dan Thoms as chief revenue officer. l Parkside Lending has announced that Matthew Ostrander, co-founder, majority owner, chairman and CEO, was elected chairman of the California Mortgage Bankers Association (CMBA) for the 2016-2017 term. l Dart Appraisal has announced the hiring of Teressa Hupfer as vice president of Operations and Marc Tatarcuk as vice president of Sales. l OS National LLC (OSN) has announced that Michelle Esparza has been named national sales executive. l CoesterVMS has announced the promotion of Suzzette Bosch to the role of national market leader, where she will be responsible for developing the company’s sales plan, as continued on page 98

Facebook for OrigiNators Join the new Facebook group by searching for “OrigiNation.” This public and open group features information that will be featured in the “OrigiNation” column in National Mortgage Professional Magazine, with your consent of course, by Andy W. Harris. People want to hear from you, the mortgage originator, from the good stories to the bad, from the funny to the serious … take this opportunity to connect and share. Search today on Facebook and join the group! Are you an originator? Send your stories! To have topics considered in future editions, please e-mail me with “OrigiNation” in the Subject Line at AHarris@VantageMortgageGroup.com. These can be confidential or your name and company can be referenced if you wish.

compliance education technological advancements in Internet-based communication hardware and software. It is also dependent upon whether the compliance training subject matter is required to be taught in a class room setting or if online training is acceptable. It therefore becomes a decision based upon resource allocation, proximity, complexity of content relative to the experience and skillset of the participants and regulatory or enterprise requirement.

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Contact Vincent M. Valvo, CEO 860.922.3441 or info@AgilityResourcesGroup.com

www.AgilityResourcesGroup.com

Consideration #4: Will the training be conducted by skilled trainers, subject matter experts (SME)s or internal staff? The answer is heavily dependent upon the complexity of the training content, the size of the enterprise the training is designed for and staff resources. This article is really speaking to the companies and enterprises who do not have skilled trainers on staff. Fortunately, the industry has an abundance of SMEs who can share their knowledge and expertise as it relates to the numerous provisions within Dodd-Frank, TRID, or virtually any compliance subject we deal with. A good SME resource is the Collateral Risk Network, with membership covering every facet of the industry. Consideration #5: Will the training materials be submitted for CE approval? What sort of completion certificates (if any) or recording method will be required to demonstrate completion of the training? Many of the attendees will be involved in various certification programs that require a certain number of continuing education course hours to be completed for each certification renewal cycle. If this applies to your group, then identifying the submission requirements and gaining CE credit approval can add significant value to the training. Consideration #6: What is the length of the training session? The length of the training session

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can have a significant impact on department staff coverage, logistics of attendees if conducting a live classroom training, whether the length of time covering the materials is sufficient to qualify for continuing education credit to the respective certification agencies, etc. As mentioned earlier, if being conducted by guest lecturers or trainers, travel and possible lodging arrangements will need to be coordinated with the training dates. Obviously recorded online videos offer the most flexibility for the training experience, but do present challenges regarding the level of participation by the attendees who might be tempted to multitask during the training session. This is less likely to occur in employer-sponsored training than an industry-related training for mandatory certification renewal. The second preferred option is to conduct a live Webinar, but this will require participation at a specific date/time for everyone attending. Fortunately, sophisticated software does exist today that can monitor remote attendees level of participation during the session if that is a concern of those developing and/or conducting the training. In this article, we discussed the fact that compliance requirements have reached new heights and as a result, increasing the need for effective compliance training which has become an ever increasing challenge to the various stakeholders in the industry. This article addressed some of those challenges taking into consideration numerous variables relating to live classroom presentations, recorded online videos as well as live online presentations including some resources for free or low-cost online applications intended to assist both large well-capitalized enterprises, as well as small lowbudget companies struggling with ensuring their staff have sufficient compliance training.

Greg Stephens, SRA, MNAA, CDEI is chief appraiser and senior vice president of Compliance for Metro-West Appraisal Company. Greg also serves as chair of Government and Legislative Affairs for the National Appraisal Congress; vice chair of the Government Affairs Council for Collateral Risk Network; and is a member of the Government Relations Committee for the National Association of Appraisers.

planning ahead

continued from page 87

those UI applications in terms of user experience. If you multiply the number of final 1003 sections by the potential impact on four interfaces, some significant complexities quickly come into view. Another important impact is the requirement to report HMDA data in an electronic format starting in 2018. This means that origination systems must be able to generate the Loan Application Register and submit it to the Web-based submission tool currently being developed by the CFPB. And we’re just scratching the surface in terms of the many wide and deep layers of impact across nearly every operational category.

Richard Gagliano is managing director, product development for Black Knight Origination Technologies. Rich is responsible for overseeing the product roadmap, requirements and delivery of existing and new technologies within the Empower and LendingSpace suites. With more than 20 years of experience in the financial services industry, he brings a wide range of lending product experience to this division.

n National Mortgage Professional Magazine n SEPTEMBER 2016

As we learned with TRID, even the best readiness plans don’t always go as intended,

twists and turns, at the end of the day the industry will certainly rise to this latest challenge.

NationalMortgageProfessional.com

Leveraging the lessons of TRID The implementation challenges and risks associated with collecting and publishing all the data associated with HMDA are clearly very significant. However, because the timing of HMDA follows closely on the heels of TRID, we can leverage some of the relevant lessons learned from the TRID implementation t, as follows: l Collaboration is vital across the industry, particularly between lenders and their technology and document providers. Seek out change management best practices and look for opportunities to confer with colleagues and subject-matter experts. l Ensure that the impacts of implementing the expanded HMDA data collection requirements are fully understood, both at the organizational level, as well as beyond the organization to the wider group of stakeholders—including customers, business partners, vendors and regulators. l Even when all the pieces of the puzzle are still unknown, move as far forward as you can with what you do know. Conduct a thorough impact assessment, develop a wellformulated implementation plan, and of course, work through the contingencies associated with a variety of scenarios for areas that are still uncertain.

especially in an environment where change can occur very quickly, and for a variety of reasons. We also saw—once again—how interconnected the industry is, and how powerful that can be when we work in tandem toward the same goals. The new HMDA requirements will enable a great deal of important analysis and deliver insightful feedback on how well the industry serves its many unique and varied customers.

While the distance between today and the future state— currently set for January. 1, 2018—is likely to see some

heard on the street

well as selecting and managing a team of regional market leaders. Tina Nuss has joined Mortgage Network Inc. as a loan officer in the company’s Lancaster, Penn. branch office, where she will be responsible for serving borrowers and homeowners throughout the Lancaster region. Altavera Mortgage Services has announced that it has hired Kimberly Joyce as senior vice president of sales, bringing 22 years of sales and business development experience to the role, in which she will oversee national sales for Altavera. Silver Hill Funding, a division of Bayview Loan Servicing LLC, has announced the addition of Eldon Lewis to the company’s sales representative team. American Pacific Mortgage (APM) has announced that Bill Lowman has been promoted to chief executive officer of the company. Lowman, who previously served as the

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company’s president and has been with APM since 2002, has more than 30 years of experience in the mortgage industry. The StoneHill Group has hired Harold Ellis as underwriting manager, where he will be responsible for overseeing all of the company’s mortgage underwriting solutions. The StoneHill Group has also hired Michael Cranford as its new human resources manager. Karla Abbott has joined Bay Equity Home Loans as a loan officer in the company’s St. George, Utah office. GSF Mortgage has appointed Steven Wellman as a sales manager in Davenport, Iowa, joining the firm with 15-plus years of mortgage industry experience. LRES has announced that Audrey Clearwater has been promoted to the role of vice president of operations, responsible for managing staffing, supervision, development, evaluation and performance for five

departments of the operations division focusing on delivering quality services to financial customers. GSF Mortgage Corporation has added Nathaniel Merrick as a branch manager in Tampa, Fla., joining GSF with 10 years of mortgage industry experience. Churchill Mortgage has announced the promotion of Candace Jones to director of Customer Experience Strategy and Management, where she will focus on ensuring that the borrower experience in the end-to-end mortgage process is educational, enjoyable and beneficial. Michigan Mutual has named George Andrews as regional sales manager for the Northwest region where he will manage growth and sales for northern California, Oregon and Washington. Genworth Mortgage Insurance, an operating segment of Genworth Financial Inc., has announced the appointment of Evan Stolove as its general counsel and senior vice president with oversight of Genworth Mortgage Insurance’s Legal and Compliance Division.

l Incenter LLC has announced that Al Qureshi has joined the firm as managing director of Analytics, to build upon the existing MSR analytics platform, which was formerly known as Interactive Mortgage Advisors (IMA), and lead the delivery of best-in-class asset valuation, analytics, risk management and advisory services. l Williston Financial Group (WFG) has promoted Justin Tucker to the position of chief marketing officer to spearhead its aggressive growth strategy. 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@nmpmediacorp.com Note: Submissions sent via email are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

SEPTEMBER 2016 n National Mortgage Professional Magazine n

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Free print subscription ($59 value). Go to Sub.NMPMag.com/nmp0511 The NMP Daily Email Newsletter is your source for breaking news, insights and tips. Get free access to full articles including the hottest industry headlines, featured articles and other mission critical stories isdelivered inbox each day.and tips. Get free Themortgage NMP Daily industry Email Newsletter your sourcetoforyour breaking news, insights access to full articles including the hottest industry headlines, featured articles and other mission critical mortgage industry stories delivered to your inbox each day.

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leading in the amc space that performs at twice the level of a peer, there is another who produces less. Tallinger says the company culture encourages going beyond without punishing those who deliver consistent quality at a slower pace. “We lead people to give their best,” Tallinger said. “That’s not the same as driving people to the point of making errors. We can’t afford errors and neither can our customers. Our culture gives people permission to excel without forcing them beyond their ability to do a really, really good job.” For some, success is just a matter of finding the right fit within the organization. Tallinger tells the story of one employee, call him Bill, who worked through three departments before finding that he was perfect for the QC department. He works there today and is doing a great job. “That’s what it’s about for us, for any organization really,” Tallinger said. “It’s finding the right fit for people, where they find something they like doing, that they can be passionate about — and then letting people know that they’re valued there.”

Rick Grant is NMP special features editor for National Mortgage Professional Magazine. He may be reached by e-mail at RickG@NMPMediacorp.com.

AARMR Honors

Levy

Robert Levy, executive director and counsel for the Mortgage Bankers Association of New Jersey (MBA of NJ), New Jersey Association of Mortgage Brokers (NJAMB) and Pennsylvania Association of Mortgage Brokers (PAMB), and principal of Offit Kurman P.A. was recently presented a Distinguished Service Award by the American Association of Residential Mortgage Regulators (AARMR) in recognition of his many years of service as chairman of the Industry Advisory Council, which provides advice and input to the board of AARMR. AARMR represents the state mortgage regulators from around the country. Its members include Thomas Hunt, Assistant Division Director of the New Jersey Department of Banking and Insurance; Rholda Ricketts Deputy Superintendent of Banks, Mortgage Banking Division, New York Department of Financial Services; and Robert Knaub, Director for NonDepository Lending for the Pennsylvania Department of Banking and Securities. Representatives of the CFPB, CSBS and NMLS were also present at the 27th Annual Regulatory Conference. Levy thanked the 300 regulators and industry representatives at the awards luncheon and said that his successor, Jack Konyk, executive director of Government Affairs with Weiner Brodsky Kider PC, was highly qualified and would do an excellent job for the organization. The Advisory Council also presented Levy with a director’s chair with his name embossed on the backrest as a token of appreciation for his many years of service. Levy, who did not chose to run for chair after his many years in that capacity, will continue to sit on the Council and looked forward to his continuing support of AARMR.

n National Mortgage Professional Magazine n SEPTEMBER 2016

technology. According to the company, technology has been a major reason that its metrics have improved in every department. “Today, our metrics, nationwide, are flat out the best of any company in our space,” Tallinger said. “And that’s good, because word travels really, really fast in our industry.” In a move that would leave many management teams backing away, Class Appraisal decided to build out a dashboard that would provide detailed information about where the company was receiving orders and how Class was performing across the entire country. Then, it gave access to the dashboard to its clients. “With our proprietary, interactive dashboard, we can show clients and prospects exactly what we’re doing, in real time,” Tallinger said. “When we send that to lenders we’re not working with yet, we can almost hear their jaws hitting the floor. They’re blown away.” But what about existing customers? What do they think of the new way Class Appraisal is delivering real estate property valuations? Tallinger says he’s glad I asked and points me to an e-mail he received that morning from a new customer. “‘Good morning Jonathan,’” he reads to me over the phone. “‘You all have absolutely killed things for us. I’m very pleased with the service we’ve received. Everyone on your staff has exceeded expectations. Thank you for living up to your name.’ That’s the kind of feedback we’re getting from our clients.” Tallinger tells me that this is the kind of results it’s possible to attain with the right company culture, when you get everyone rowing the boat in the same direction. “It’s a lot of fun working here, and that’s rubbing off on our clients,” he said. “It’s also rubbing off on the appraisers we’re working with. It’s a very exciting time here right now, especially knowing that the best is still yet to come!”

NationalMortgageProfessional.com

Removing limitations In effect, Class Appraisal has taken the words “it’s not my job” out of the company’s lexicon. An excuse that holds back innovation in industries all across the nation is completely absent at Class. But it goes beyond telling employees they can work as hard as they want and extends to developing the technology that allows them work smarter, too. Tallinger says that Class Appraisal has doubled down on its commitment to building proprietary technology. Having the right tools to allow Class to connect seamlessly with its lender clients’ nationwide streamlines operations, speeds up delivery of quality reports and improves customer satisfaction. It would not have been possible for Class to grow this quickly without the right

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outstanding

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Assurance Financial has built a great reputation for closing loans on time. Our operations team is committed to helping our branch managers and loan officers succeed. We have immediate openings throughout the South. Join us, and experience what a huge difference our support can make to your success!

Although REMN Wholesale is part of a large corporation, it feels like a “Mom and Pop”-style company. We encourage our team members to grow and we train and promote each individual to their full potential. As a national company, REMN provides many opportunities for employment from coast to coast.

PRMG

United Wholesale Mortgage

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Built by originators for originators, PRMG was born from a vision of creating a company with a unique culture focused on the successes of the producer. We understand what it takes to be a successful originator and cultivate new business every day.

Voted the #1 place to work in Metro Detroit, UWM is looking for A players to join our talented team. Our business is driven by our culture, and our people are our greatest asset. If you’re looking for the opportunity of a lifetime, apply to UWM today!

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We are pleased to announce a new package that will give your firm the recruiting tools to instantly shift your recruiting efforts into high gear using a multimedia, market-saturating approach. We will utilize the most successful methods that our clients have been using to find, identify and place top talents for your company. We have designed these packages with the concept of making it less expensive to give you the ability to reach more people. NATIONAL MORTGAGE PROFESSIONAL MAGAZINE 1220 Wantagh Avenue • Wantagh, New York 11793-2202 516-409-5555 • Fax: 516-409-4600 • E-mail: advertise@NMPMediaCorp.com

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

calendar of events

SEPTEMBER 2016 Saturday-Monday, September 24-26 NAMB National 2016 The Luxor Resort & Hotel 3900 South Las Vegas Boulevard Las Vegas For more information, call (860) 719-1991 or visit NAMBNational.com. Wednesday-Friday, September 28-30 MBA’s Risk Management, QA & Fraud Prevention Forum 2016 JW Marriott L.A. LIVE 900 W Olympic Boulevard Los Angeles, Calif. For more information, call (800) 793-6222 or visit MBA.org.

Tuesday-Friday, October 4-7 Mortgage Bankers Association of the Carolinas 61st Annual Convention “Right Place, Right Time” Hilton Head Marriott Resort & Spa 1 Hotel Circle Hilton Head Island, S.C. For more information, call (843) 303-5705.

Monday-Thursday, October 24-27 8th Annual Conference of Mortgage Brokers and Professionals Harrah’s Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, call (732) 596-1619 or visit MBANJ.com. NOVEMBER 2016 Thursday, November 10 MBA’s Whole Loan Trading Workshop 2016 Hilton Phoenix Airport Hotel 2435 South 47th Street Phoenix, Ariz. For more information, call (800) 793-6222 or visit MBA.org. Monday-Wednesday, November 14-16 National Reverse Mortgage Lenders Association 2016 Annual Meeting & Expo The Swissotel Chicago 323 East Upper Wacker Drive Chicago For more information, call (202) 939-1784 or visit NRMLAOnline.org.

Thursday, December 8 Florida 2016 Holiday Networking Party DoubleTree by Hilton Hotel Sunrise-Sawgrass Mills 13400 West Sunrise Boulevard Sunrise, Fla. For more information, call (860) 922-3441 or e-mail BeverlyB@NMPMediaCorp.com.

Wednesday-Thursday, November 16-17 Mortgage Star Conference 2016 Canyons Resort 4000 Canyons Resort Drive Park City, Utah For more information, call (860) 922-3441 or visit Mortgage-Star.net.

Thursday, December 15 New York 2016 Holiday Networking Party Long Island Marriott 101 James Doolittle Boulevard Uniondale, N.Y. For more information, call (860) 922-3441 or e-mail BeverlyB@NMPMediaCorp.com.

Wednesday-Thursday, November 16-17 MBA’s Summit on Diversity and Inclusion 2016 Capital Hilton 1001 16th Street NW Washington, D.C. For more information, call (800) 793-6222 or visit MBA.org.

MARCH 2017 Thursday-Saturday, March 16-18 NAMB East 2017 Omni Atlanta Hotel at CNN Center 100 CNN Center NW Atlanta, Ga. For more information, visit NAMB.org.

Friday, November 18 Utah Mortgage Expo 2016 Zermatt Resort & Spa 784 Resort Drive Midway, Utah For more information, call (860) 719-1991 or visit UAMPExpo.com.

MAY 2017 Tuesday-Thursday, May 2-4 2017 Great River MBA Conference The Peabody 149 Union Avenue Memphis, Tenn. For more information, call (901) 321-6702 or visit GreatRiverMBA.com.

DECEMBER 2016 Tuesday, December 6 California 2016 Holiday Networking Party Atrium Hotel 18700 MacArthur Boulevard Irvine, Calif. For more information, call (860) 922-3441 or e-mail BeverlyB@NMPMediaCorp.com.

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@nmpmediacorp.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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n National Mortgage Professional Magazine n SEPTEMBER 2016

OCTOBER 2016 Tuesday-Friday, October 4-7 American Land Title Association 110th Annual Convention Fairmont Scottsdale Princess 7575 East Princess Drive Scottsdale, Ariz. For more information, call (202) 296-3671 or visit ALTA.org.

Sunday-Wednesday, October 23-26 Mortgage Bankers Association 2016 Annual Convention Hynes Convention Center 900 Boylston Street Boston, Mass. For more information, call (800) 793-6222 or visit MBA.org.

Tuesday-Thursday, November 15-17 MBA’s Accounting and Financial Management Conference 2016 Manchester Grand Hyatt 1 Marketplace San Diego For more information, call (800) 793-6222 or visit MBA.org.

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Thursday, September 29 8th Annual NYC Real Estate Expo The Hilton Hotel 1335 Avenue of the Americas New York, N.Y. For more information, call (646) 210-2545 or visit NYCNetworkGroup.com.

Friday-Saturday, October 14-15 The Arizona Mortgage Expo 2016 Wild Horse Pass Casino & Resort 5040 Wild Horse Pass Boulevard Chandler, Ariz. For more information, call (860) 719-1991 or e-mail Info@AgilityResourcesGroup.com.

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EDUCATION

SEPTEMBER 2016 n National Mortgage Professional Magazine n

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102 APPRAISAL MANAGEMENT, INC. 925.944.4848 www.PCAAMC.com

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HomeBridge Wholesale iis a national wholesale lender offeering Conventional, Government, Jumbo, Renovation We G J b and dR i Loans. L W are comm mitted to providing the highest value to our clients through competitive pricin ng, unique product offerings, superior customer service, and state-of-the-art technology.

PUBLICATIONS

WHOLESALE LENDERS

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

n National Mortgage Professional Magazine n SEPTEMBER 2016

Now Hiring Wholesale Sales Managers/Account Executives Nationwide Please send resumes to Marketing@HomeBrridge.com

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© Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 3060 Peachtree Road NW, Suite 500B, Atlanta, GA 30305. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-to-business communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Employer and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, veteran status or other classification protected by law. 4-14-16 MBC