National Mortgage Professional Magazine September 2017

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

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12 MONTHS BANK STATEMENTS TO $2,500,000 • 5000-12BS PLUS - 680 Min FICO – Personal / Business Statements up to 80% LTV – Starting at 5.25%*

24 MONTHS BANK STATEMENTS TO $2,500,000 • 5000-24BS - 680 Min FICO – Personal / Business Statements up to 85% LTV – Starting at 4.875%* • 5000-24BS - 660 Min FICO – Personal / Business Statements up to 90% LTV – Starting at 5.875%* • 5000-24BS-NP - 580 Min FICO – Personal / Business Statements up to 90% LTV – Starting at 6.625%*

NON-PRIME FULL DOC TO $2,500,000 • 5000-NP PLUS - 660 Min FICO – 2 Yrs BK, 4 Yrs Short Sale /Foreclosure up to 90% LTV– Starting at 4.875%* • 5000-RH - 500 Min FICO – 1 Yr BK, 1 DAY Short Sale /Foreclosure up to 80% LTV – Starting at 6.625%* • 5000-NP - 500 Min FICO – 1 Yr BK, 1 Yr Short Sale /Foreclosure up to 90% LTV– Starting at 6.125%*

INVESTOR - NO INCOME LOANS TO $2,000,000 • 5000-INV-PP - 640 Min FICO – No Income/No Employment/No Reserves Up to 75% LTV – Starting at 7.375%* • 5000-INV-DTI-PP - 620 Min FICO – No Income/No Employment/No Reserves Up to 80% LTV – Starting at 6.75%* • 5000-INV-FN-PP - Foreign National Borrower – No FICO/No Income/No Employment/No Reserves Up to 70% LTV – Starting at 7.75%*

NEAR PRIME FULL DOC TO $2,500,000 • 5000-JUMBO ELITE - 700 Min FICO – 7 Yrs BK, 7 Yrs Short Sale /Foreclosure up to 80% LTV – Starting at 4.25%* • 5000-1YR TAX - 660 Min FICO – 7 Yrs BK, 7 Yrs Short Sale /Foreclosure up to 80% LTV – Starting at 6.00%*

FOREIGN NATIONAL FULL DOC TO $2,000,000 • 5000-FN - No FICO – Income Docs up to 70% LTV – Starting at 6.75%*

ITIN FULL DOC TO $600,000 • 5000-ITIN - No FICO – Full Doc up to 90% LTV - Starting at 7.5%*

Interest Only Option

Exceptions

Non-Warrantable Condos

1-4 Units

Wholesale-Correspondent

www.GreenBoxLoans.com (800) 600-9198 Wholesaleinfo@greenboxloans.com

Gbox Licenses: BRE#01300944, DBO# 603L516, AZ#0919899, CA#333659, CO#333659, CT#MCL-333659, DE#29707, FL#MLD886, GA#33937, ID#MBL-7961, IL#MB.6760993, LA#333659, MD#21707, MI#FL0018821, MS#333659, NJ#333659, NC#L-156181, OH#MBMB.850183.000, OK#ML010327, OR#ML-5093, PA#48972, TX#333659, WA#CL-333659 This information is meant for Real Estate and mortgage professionals ONLY and is not to be provided to consumers. All products are not available in all States.

Rate, terms, and conditions are subject to change without prior notice.

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NationalMortgageProfessional.com

MLS LinkTM is a "set it and forrget it" feaature

table of

48

N A T I O N A L

The Mortgage Godfather: Making Money Is Simple!

By Ralph LoVuolo Sr.

S E P T E M B E R

52 How to Get and Keep Momentum to Raise Your Sales Numbers

By Bubba Mills

M O R T G

2 0 1 7

l

V O

A SPECIAL FOCUS ON “THE WHOLESALE & CORRESPONDENT MARKETPLACE”

C

H

Non-QM Loan Popularity Spurs Evolution of Correspondent Channel By Sean M. Marr ........................................................................64

I

Building Strong Communities Through Third-Party Origination

By David Stephan ......................................................................................68

O

Wholesale Changes on the Horizon By Laura Brandao ........................70

T

Capturing the Millennial Homebuyer Market By John Pataky ..............72

T

Growth Opportunities in the Wholesale Market By Greg Schatz..........74

C

Rebooting Mortgage Servicing With FinTech Solutions

By James V. Luisi ......................................................................................76

S

Growth Opportunities for Mortgage Bankers Via the Wholesale Channel By Sharon Falvey ........................................................................78

54 NMP’s Legends of Lending: Paramount Residential Mortgage Group Inc. (PRMG)

By Phil Hall

N

A

The Year 1995 Is Calling … By Eric Weinstein ........................................80

N

FEATURES

M

Who Are Non-Prime Borrowers and Why Do Loan Officers Want Them as Clients? By Tom Hutchens ........................................8

T

The Elite Performer: Move Forward By Andy W. Harris, CRMS ........8

R

Recruiting, Training and Mentoring Corner: Managers—

E

T

Are Wholesalers Helping You Manage? By Dave Hershman ..........10 Reverse Mortgages: From Stigma to Smart Business Strategy ....16

C

3 Points With Mat Ishbia ..................................................................18

N N H O N N

NAMB Perspective............................................................................22 Loan Advisor Suite Helps Lenders “ACE” Originations

By Rick Grant ....................................................................................30 Compliance Matters: The Difference Between AML Compliance and OFAC Compliance By Jonathan Foxx........................................34

82 Who’s Who in the 2017 Wholesale Marketplace

V I S I T Company

Web Site

O U R

A D Page

Angel Oak Mortgage Solutions ............................ www.angeloakms.com ..............................66 & Back Cover Athas Capital Group .......................................... www.athascapital.com ....................................................5 BCHH, Inc. ........................................................ www.bchhtitle.com ........................................................77 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................17 Caliber Home Loans.............................................. www.caliberwholesale.com ..............................................73 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ................................7 & 95 Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................43 Comergence Compliance Monitoring, LLC ............ www.comergencecompliance.com ..................................69

98 TRID Rule Updates and the “Black Hole” Conundrum

By Jonathan Foxx, Ph.D., MBA

DocMagic .......................................................... www.docmagic.com ......................................................11 Flagstar Bank .................................................... www.flagstar.com/why ..................................................35 Franklin American Mortgage Company ................ www.franklinamerican.com ............................................41 Greenbox Loans, Inc........................................... www.greenboxloans.com ..............................................IFC HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................81 Lykken On Lending ............................................ www.lykkenonlending.com ............................................95

T

MBS Highway .................................................... www.mbshighway.com/MNN ..........................................51

T

Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................46 & 47 NAMB+ ............................................................ www.nambplus.com ......................................................31

of contents

R T G A G E

V O L U M E

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

9

l

N U M B E R

9

Can You Achieve Career Mastery Online?

By Shirleen Von Hoffmann..................................................................36 How to Commit Fraud By Jerome Mayne ........................................38

I Don’t Know Who to Call and I Don’t Know What to Say!

By Steve Rennie ................................................................................40 OrigiNation: The Entitled Borrower By Andy W. Harris, CRMS ......42 The End of Interest Rate Selling ......................................................50 The Long & Short of Short Sales By Pam Marron............................58 CFPB Publishes Final Amendments to TRID Rule

By Gavin T. Ales ................................................................................60 Scenes From the FAMP 2017 Annual Conference & Trade Show..62 NMPU Campus Talk By Ron Vaimberg ............................................86 Are Buyers Really Liars or Is It You? By Brian Sacks ....................88 Not All HELOCs Are Created Equal By Rob Walker, CMB, CMT ....90 MBA’s Mortgage Action Alliance ....................................................91 The Compliance Knowledge Curve By Kris Barros..........................92 The NAPMW Report By Cathy Kantrowitz ........................................94 Real Estate Talk By Victoria Rivadeneira ..........................................96 Establishing and Maintaining Your Online Presence

By Chris Johnstone ..........................................................................106

COLUMNS New to Market...................................................................................12 News Flash: September 2017 ...........................................................14 Heard on the Street...........................................................................44 Outstanding Places to Work ...........................................................108 NMP Calendar of Events .................................................................109 NMP Resource Registry..................................................................110

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

Web Site

Page

NAMB Kickstart.................................................. www.nambkickstart.com ..........................................20-21 NAMB National .................................................. www.namb.org ..............................................................25 NAPMW ............................................................ www.napmw.org ..................................................77 & 101 NAWRB ............................................................ www.nawrb.com ............................................................75 New American Funding ...................................... www.newamericanfunding.com ....................................112 NMP Holiday Networking Party .......................... signup.nmpmag.com/holidayparty ..........................32 & 33 NMP U .............................................................. www.nmpucoaching.com ..................................19, 45 & 67 NRMLA.............................................................. www.nrmlaonline.org ....................................................49 OSI Express........................................................ www.osiexpress.com/mlslink ............................................1 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................13, 79 & Inside Back Cover REMN................................................................ www.remnwholesale.com ..............................................15 ResMac, Inc. ...................................................... www.resmacb2b.com ......................................................9 Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................71 TagQuest .......................................................... www.tagquest.com ........................................................61 The Bond Exchange............................................ www.thebondexchange.com ..........................................74 United Wholesale Mortgage ................................ www.uwm.com ........................................................56-57

SEPTEMBER 2017 Volume 9 • Number 9

FROM THE

publisher’s desk

Celebrating Wholesale & Correspondent Lending For all of the strength of the nation’s top direct lending brands, wholesale and correspondent lenders 1220 Wantagh Avenue • Wantagh, NY 11793-2202 will always be important parts of the home finance value chain. This is the issue we dedicate to Phone: (516) 409-5555 • Fax: (516) 409-4600 celebrating this business, the larger lenders that make it possible and the many downstream Web site: NationalMortgageProfessional.com partners that complete the connection between these lenders and the borrowers they serve.

STAFF Eric C. Peck Joel M. Berman In many ways, wholesale and correspondent lenders are the lifeline of the industry. The liquidity Editor-in-Chief Publisher - CEO (516) 409-5555, ext. 312 (516) 409-5555, ext. 310 they provide makes it possible for brokers and bank loan officers across the country to offer the ericp@mortgagenewsnetwork.com joel@mortgagenewsnetwork.com financing consumers need to reach their version of the American Dream. Befitting their importance to Joey Arendt Beverly Bolnick the business and in service to the needs of the many originators that work with them, we have Art Director VP-Sales & Marketing (516) 409-5555, ext. 323 (516) 409-5555, ext. 316 packed this issue with information designed to make everyone in the value chain more successful. joeya@mortgagenewsnetwork.com beverlyb@mortgagenewsnetwork.com But before I get into the specific stories we have for you in this month’s issue, I want to address a Scott Koondel Phil Hall VP of Operations Managing Editor developing story that we’ll be watching closely here at National Mortgage Professional Magazine. At (516) 409-5555, ext. 324 (516) 409-5555, ext. 312 the time I was writing this column, cleanup efforts were still going on in Houston, in the wake of scottk@mortgagenewsnetwork.com philh@mortgagenewsnetwork.com Hurricane Harvey, and Irma had made its way up through Florida and into Georgia, where the storm Richard Zyta Francine Miller Social Media Ambassador Advertising Coordinator had already taken many lives. Currently, about one-third of all residents of Florida are without power, (516) 409-5555 (516) 409-5555, ext. 301 richardz@mortgagenewsnetwork.com francinem@mortgagenewsnetwork.com some 6.5 million homes and businesses.

Rick Grant Dylan Pollock First, our hearts goes out to all of those caught by these storms. We have and encourage all of Special Reports Editor Administrative Assistant our readers to donate to the Red Cross to support the relief efforts, and we will continue to pray for (570) 497-1026 (direct) (516) 409-5555, ext. 314 (516) 409-555, ext. 311 dylanp@mortgagenewsnetwork.com those who have lost so much over the past few weeks. rickg@mortgagenewsnetwork.com But we’ll also be watching for the future impacts of these storms, which we expect to be ADVERTISING To receive any information regarding advertising rates, deadlines and requirements, please contact significant. Construction will surge as we rebuild, while insurance companies will suffer, sending that VP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail beverlyb@mortgagepain back upstream to the rest of us. We’ll be watching carefully to see what impact these events newsnetwork.com. may have on flood insurance premiums, which we expect to see increase as the fund gets depleted ARTICLE SUBMISSIONS/PRESS RELEASES To submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peck by the losses incurred during these storms. Watch NationalMortgageProfessional.com for our at (516) 409-5555, ext. 312 or e-mail ericp@mortgagenewsnetwork.com. The deadline for submissions continuing coverage. is the first of the month prior to the target issue.

On a brighter note, we want to congratulate the Board of Directors of NAMB—The Association of SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@mortgageMortgage Professionals, for putting together a program that we expect to be very successful in newsnetwork.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600. attracting attendees to their upcoming NAMB National 2017 convention. Coming up on Oct. 14-16 Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the at the Rio in Las Vegas, this is one show that every loan originator should attend. This issue will authors alone and do not imply the opinion or endorsement of Mortgage News Network Inc., or the offiserve as your Official Guide to NAMB National 2017, and includes the full Schedule of Events and cers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) List of Exhibitors, as well as the floor plan for the Expo Hall beginning on page 22. and/or other state mortgage trade associations.

Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activWhen you’re out in Vegas, be sure to stop by our booth and see who’s on camera in our media ities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement booth. And be sure to thank outgoing NAMB President Fred Kreger for his fantastic work this year. of the product and/or services by Mortgage News Network Inc., NAMB, NAPMW, NCRA, and other state mortgage trade associations.

Congratulations to John G. Stevens as he takes over the reins as NAMB President for the coming National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage year and to all the new NAMB Board Members. trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in Mortgage And now to the content we’ve pulled together for this month’s special focus. First, we’ll take a News Network Inc. publications. National Mortgage Professional Magazine and Mortgage News Network Inc. reserve the right to edit, reject and/or postpone the publication of any articles, information or data. look at how the market has changed this time around the cycle. Laura Brandao, COO at American Financial Resources, looks at broad industry changes in her article “Wholesale Changes on the Horizon” on page 70. James V. Luisi, CIO for KeyStoneB2B, takes a more focused look at the FinTech Solutions that are “Rebooting Mortgage Servicing” and the impact this tech is having on the market in his feature on page 76.

The market may be different this time around, but the opportunities are just as real and we have a number of articles to show originators exactly where to find them. In this issue, find: l “Growth Opportunities in the Wholesale Market” from Greg Schatz, Regional Sales Manager for the Wholesale Division of Planet Home Lending on page 74. This market is growing. l “Growth Opportunities for Mortgage Bankers Via the Wholesale Channel” from Sharon Falvey, Vice President of Sales at Open Mortgage beginning on page 78. Check out reverse mortgages. l On page 64, Sean M. Marr, Director of Correspondent Lending for Angel Oak Mortgage Solutions, brings you “Non-QM Loan Popularity Spurs Evolution of Correspondent Channel.” The non-QM segment is seeing steady growth. l In “Capturing the Millennial Homebuyer Market” on page 72, John Pataky, Executive Vice President of the Consumer Division for EverBank, discusses the opportunities growing in this new generation.

But it’s not just opportunity for those of us working within the industry that the wholesale and correspondent channels are bringing. There is also an opportunity to help communities rebuild from tragic events, like the economic crash and the recent storms. See David Stephan’s excellent article, “Building Strong Communities Through Third-Party Origination” on page 68, for more on that topic.

And what issue would be complete without a thought provoking article from Eric Weinstein. This time on page 80, he has entitled his piece, “The Year 1995 Is Calling …” Pardon me, I think I have to take that call! But before I do, let me remind you to see three more pieces you won’t want to miss.

First, in this month’s Legends of Lending profile on page 54, we shine a spotlight on Paramount Residential Mortgage Group Inc. (PRMG). We sat down with four members of the PRMG leadership team to get their insight on the state of the industry and the strategies that have kept PRMG at the apex of the mortgage industry.

And don’t miss this month’s compliance article from Jonathan Foxx beginning on page 98. This time, Jonathan takes an in-depth look at the new CFPB TRID rule updates, sharing his insight and warning you about the “Black Hole” conundrum hiding in the regs.

Finally, this month we feature the annual “Who’s Who in the Wholesale Marketplace” on page 82, featuring executives from 42 companies from across the space. If you want to capitalize on the opportunities offered by the wholesale and correspondent channels, these are the people to know.

Enjoy this issue. We hope it contributes to your continued success. Best wishes for your continued safety if you were caught in the path of the recent storms. We hope to see you all in Las Vegas for NAMB National this October.

Sincerely, Joel M. Berman, Publisher-CEO NMP Media Corp.

Joel@MortgageNewsNetwork.com National Mortgage Professional Magazine is published monthly by Mortgage News Network Inc. • Copyright © 2017 Mortgage News Network Inc.

5

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n SEPTEMBER 2017

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: NAMB.org

NAMB 2016-2017 BOARD OF DIRECTORS E X E C U T I V E

Fred Kreger, CMC President American Pacific Mortgage 3000 Lava Ridge Court, Suite 200 Roseville, CA 95661 (916) 960-5824 Fred.Kreger@APMortgage.com

John G. Stevens, CRMS President-Elect RPM Mortgage Inc. 6045 West 10050 North Highland, UT 84003 (801) 427-7111 JohnGStevens@gmail.com

Valerie Saunders, CRMS Vice President RE Financial Services Inc. 25 Causeway Boulevard #101 Clearwater Beach, FL 33767 (727) 853-1000 Valerie@REFinServ.com

Olga Kucerak, CRMS Secretary Crown Lending Inc. 10 Broadway, Suite 110 San Antonio, TX 78205 (210) 828-3384 CrownLending@gmail.com

B O A R D

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

Harry H. Dinham, CMC NAMB COO Dinham Consulting 2701 West 15th Street, Suite 536 Plano, TX 75075 (972) 758-1151 Consulting@DinhamCompanies.com

Rocke Andrews, CMC, CRMS Immediate Past President Fairway Independent Mortgage Inc. 5151 East Broadway, #1700 Tucson, AZ 85711 (520) 886-7283 RAndrews@LendingArizona.net

D I R E C T O R S

Rick Bettencourt, CRMS Mortgage Network Inc. 52 Maple Street Danvers, MA 01923 (978) 304-0818 RBettencourt@MortgageNetwork.com

Chris Bettis Precision Capital 4710 Village Plaza Loop, Suite 140 Eugene, OR 97441 (541) 284-8098 Chris@PrecisionCapital.net

Linda McCoy, CRMS Mortgage Team 1 6336 Piccadilly Square Drive Mobile, AL 36609 (251) 650-0805 Linda@MortgageTeam1.com

Michele Velez, CMC Supreme Lending 1300 San Mateo, CA 94402 (650) 409-5347 Michelle.Velez@SupremeLending.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

Robert Sweeney, CRMS Teachers Credit Union 600 East Carmel Drive, Suite 116 Carmel, IN 46032 (317) 625-3287 RSweeney@tcunet.com

Kimber White RE Financial Services Inc. 1620 West Oakland Park Boulevard #201 Oakland Park, FL 33311 (954) 306-3553 Kimber.LMT@gmail.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: NAPMW1@NAPMW.org l Web site: NAPMW.org

2017-2018 NAPMW NATIONAL BOARD OF DIRECTORS

SEPTEMBER 2017 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

6

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

Laurel Knight President-Elect (425) 426-2028 PresElect@NAPMW.org

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

Glenda Mooney Secretary (314) 703-8714 NatSecretary@NAPMW.org

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

Lynne Sparks Parliamentarian (678) 872-9000, ext. 10611 LSparks@SKWRLaw.com

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: NCRAINC.org

2016-2017 BOARD OF DIRECTORS

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

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

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

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

Scott Ledbetter Director (214) 833-3315 SLedbetter@LCGSolutions.net

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

Brian McKinney Director (706) 373-2200 McKinney@MCBUSA.com

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

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

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

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

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

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

Big Things on the Horizon for ARMCP This year will bring some great new opportunities to the Association of Residential Mortgage Compliance Professionals™ (ARMCP™), currently consisting of nearly 1,600 members. ARMCP™ will soon be launching its own Web site to fulfill the needs of residential mortgage compliance professionals.

ARMCP™ is the first and only independent, national organization in the U.S. devoted exclusively to residential mortgage compliance professionals. Our independence means we are not affiliated with any profit oriented corporation or enterprise. ARMCP™ membership consists solely of those members who have joined it on their own and were not solicited to join it via solicitations from third-party lists or subscriptions. Independence is the key to the value of our advocacy!

There are currently two slots remaining for the Steering Committee. The Steering Committee will be drafting new by-laws, determining a nominating process, conference planning, and many other areas of interest relating to ARMCP™’s mission. If you are interested in joining the Steering Committee, email Info@ARMCP.org.

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n National Mortgage Professional Magazine n SEPTEMBER 2017

Unconventional loans for conventional client s

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GOVE R NME N T LOAN PROGR AM A S

Carrrington givess you the pow wer to master m the to oughest loans.

Who Are Non-Prime Borrowers and Why Do Loan Officers Want Them as Clients?

By Tom Hutchens

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s of 2015, according to Fair, Isaac and the Corporation for Enterprise Development, more than 150 million “non-prime” consumers lived in the United States. Yes, the number is staggering. There are more non-prime than prime consumers.

That may seem ominous, but most non-prime people are just as reliable and responsible as people who—as defined by financial regulations—look better on paper. The non-QM loan products developed for them are nothing like the sub-prime mortgages that spurred the Great Recession 10 years ago.

When originators see beyond the stigma of terms such as non-prime and non-QM, they can fill their pipelines and enable quality individuals to buy homes.

Many factors can cause a buyer to be classified non-prime and ineligible for agency loans. If you had a foreclosure, too many medical bills, a tax lien or other unfortunate incident, you impaired your credit rating. This regulatory classification prevents agency lenders from considering in detail your ability to pay.

Since 2014, innovative mortgage lenders have deployed methods for determining the creditworthiness of this nonprime group. They offer non-QM loans that are underwritten manually, call for ability to repay standards, and often require significant down payments. During the time that they have been on the market, these alternative loans have performed well for wholesale lenders and originators who offer them.

This new wave of mortgage lenders has significantly reduced delinquencies and created safer non-prime lending products, all while helping deserving borrowers purchase homes.

The Johnson Family in Dayton, Ohio needed this kind of help to purchase a larger home for their family of six.

Although Walter and Jane were always employed and current on their mortgage payments, their travel and other expenses maxed out five credit cards when his parents were ill in another city and their oldest children began college. As a result, they cancelled the cards, agreed to a long-term payout, and their credit scores dropped into the 500s. They had sufficient income and equity in their current home to afford an upgrade, but could not qualify for an agency loan.

As their DTI ratio was well below 50 percent, despite the credit card incident, the Johnsons qualified for an Angel Oak Non-Prime Program loan with a rate below 5.5 percent.

Individual loan officers, the lending industry and the U.S. economy will steadily benefit as we seek out and serve families like the Johnsons, whose credit issues are understandable and manageable.

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

SPONSORED EDITORIAL

elite performer the

Move Forward

BY ANDY W. HARRIS, CRMS

et’s face it … life is a test and each morning, you must decide if you are going to hustle the day or if the day is going to hustle you. The Urban Dictionary describes hustling as: “Having the courage, confidence, self-belief, and self-determination to go out there and work it out until you find the opportunities you want in life.” The magic word here is “until.” No stopping, no moving backwards, always pressing forward. Giving up or lacking determination will result in retraction and being out-hustled by your own mental blocks.

You must have a compelling vision and never give up on that vision. Keep trying and keep innovating. Passion is required to truly keep a forward pace, and fuel that drive to hustle. Without a vision, passion is hard to develop independently. It’s important to have you own goals and views, as well as developing a team that shares them.

Without your own independent thinking, internal motivation can be very difficult. Trying to move forward and stay motivated off someone else’s agenda is a recipe with a foul taste. You have to believe in what you’re doing and in the team you’re working with.

Never fear failure. It’s a part of life and it’s a part of business. If you don’t take calculated risks in your business and in setting outlandish goals, how can you expect to remain motivated? Only look back to learn from and correct mistakes, but always move forward when targeting new goals and seeking new opportunities. Rewards outweigh risks when you meet the goals you once thought were impossible. Success is not an entitlement and does not come easy. If you want it, you must step up and take it. It’s not always easy. If it were, everyone would be doing it.

L

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 2017

Can n be applied to all loan products.

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Recruiting, Training and Mentoring Corner

Managers: Are Wholesalers Helping You Manage?

BY DAVE HERSHMAN

have said this before time and time again … sales management in this industry is like having four or so full-time jobs. Most of our managers are top producers. That is more than a full-time job. Then add recruiting, coaching, mentoring, administrative tasks and more, and you can easily see what I mean. There just isn’t enough time in the day to get everything done. And since the majority of the income of a sales manager comes from personal production, guess what activities are likely to suffer?

When I train or coach managers, I emphasize the need for synergy. Effectively implementing synergy techniques helps you get more done in less time. I could give you a hundred examples of synergy and most likely you are already using some of these. However, the focus of this month’s edition is the “Wholesale & Correspondent Marketplace.” For retail mortgage companies, wholesale entities act as vendors. Thus, I will ask the question-how can vendors such as wholesale companies help managers with their time/resource dilemma?

Certainly, giving great service is a required step. The last thing a manager needs to be doing is chasing down a wholesale company to get their or their loan officers’ loans closed. Therefore, service must be a given. The real question is what kind of added value can wholesale vendors give to managers so that they become more than vendors. The goal is to

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become real partners contributing to their success.

In order to explain this, I thought I would use the example of a vendor that is closely related to wholesalers– mortgage insurance companies.

In this case, we will more specifically use MGIC–Mortgage Guaranty Insurance Corporation because I am personally more familiar with their value-added options. What can MGIC do to help managers in the area of support.

Marketing MGIC account executives are constantly bringing around flyers that can be personalized by their customers and used in their marketing. And I should add that these flyers are not usually about mortgage insurance–they are more generally educational and cover topics such as credit scores and first-time homebuyers.

Social media MGIC teaches a class on LinkedIn for loan officers, as well as providing a host of material which can be used as content by following MGIC and sharing their posts. As you know, content is king when it comes to social media.

Training In addition to the social media class, MGIC has a full range of seminars for mortgage employees. Plus, it has educational materials for clients of mortgage companies, such as a first-time homebuyer

“Most of our managers are top producers.

That is more than a full-time job.” educational kit. MGIC is also a sponsor of OriginationPro Mortgage School and clients of MGIC get a discount of 25 percent on courses, as well as greater discounts for larger users.

Tools MGIC provides additional tools such as their Buy vs. Wait Calculator (MGIC.com/MGIC/BuyNow/) and blog of industry experts covering marketing, sales and other topics.

In other words, this is an example of a vendor moving from being a product provider to providing value every way they can. My question is, are your wholesale companies using the

same formula? I am not suggesting they do everything in these example, but if each vendor did one or two things really well, they could really be helping their clients.

On the other hand, managers are you ducking the wholesale companies and vendors who are visiting your office or emailing/calling you? Or are you asking them what they have which could make your life easier and your job more effective– besides their products? The formula works both ways.

Wholesalers must provide value and their clients must open their eyes and change the way they view their vendors. That is what partnerships are all about.

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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n National Mortgage Professional Magazine n SEPTEMBER 2017

newtomarket Equity Prime Mortgage Launches New Mobile App

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Equity Prime Mortgage, licensed in 45 states, is proud to launch a new mobile app, giving loan originators the ability to facilitate the loan process from anywhere they have a mobile device and a Web connection. The loan origination system integration affords loan originators the ability to track, monitor, and respond to borrower needs from anywhere. Borrowers and real estate agent partners will also be able to instantly track the loan process through Equity Prime Mortgage’s mobile technology.

“With mobile device use at an alltime high, we are pleased to announce the rollout of our new Mobile App that is sure to be a game-changer for our sales team,” said Equity Prime President Eddy Perez, CMB. WFG National Title Integrates With SMS TitleExpress

WFG National Title Insurance Company, a Williston Financial Group company, has successfully completed an integration of multiple WFG e-services with the Settlement Management Solutions (SMS) TitleExpress platform. According to Gene Rebadow, WFG’s Executive Vice President, Agency, Eastern Division, the integration will unite a leading title production platform, TitleExpress, with WFG’s e-CPL and e-Jacket services.

“TitleExpress is one of the most utilized title production systems for independent agents nationwide,” said Rebadow. “This integration will help WFG’s agents further streamline their processes and eliminate unnecessary time and the

cost of obtaining Closing Protection Letters, Insured Closing Letters and Policy Jackets.”

The integration is now available in the v8.4.5 release of SMS TitleExpress.

MBA Announces New CMCP Designation

Mortgage Bankers Association (MBA) Education has announced the creation of the Certified Mortgage Compliance Professional (CMCP) designation, and the opportunity to take the classes for first level of the designation at no charge in conjunction with MBA’s upcoming Regulatory Compliance Conference in Washington, D.C. “In the ever-changing, but always complex regulatory environment of the real estate finance industry, the work of compliance professionals is critical. This new designation will be the gold standard to recognize the expertise of those who provide compliance advice in our businesses,” said Ken Markison, MBA’s Vice President and Regulatory Counsel, one of the course designers. “Compliance professionals do much more than making sure their business stays out of trouble. Those who gain the CMCP designation must also demonstrate that they have are capable of managing compliance systems to protect consumers and also their businesses from liability.”

The designation is slated to include three levels–Basic, Intermediate and Advanced. Each level will consist of 20-25 hours of course work. The Basic Level is geared towards compliance professionals at the beginning of their

careers, including junior compliance analysts, compliance specialists, junior QC analysts and QC analysts, and regulatory or licensing specialists. The Intermediate Level will be geared to mid-level compliance professionals and the Advanced Level to compliance managers.

In addition to Markison, Bart Shapiro, MBA’s Director of Regulatory Compliance Education Strategy and a leading expert in compliance, is developing the curriculum in collaboration with MBA’s Compliance Essentials Curriculum Advisory Council, which includes senior compliance professionals from MBA member companies.

HMDA Audit offers comprehensive functionality lenders can use to validate and update their HMDA data, including advanced geocoding tools (RATA and/or FFIEC). Geocode information is initially populated based upon LOS data or can be run during the loan boarding process. If information is missing or changes are made to the Property Location fields, the user can update the geocode information with the click of a button.

An interactive map can also be used to find a location and generate the codes needed, which are then displayed in the HMDA worksheet.

Best Rate Referrals Launches Mortgage Advisor Portal

LoanLogics Launches HMDA Audit Tool for the LoanHD Platform

LoanLogics has introduced HMDA Audit, a new module for the company’s LoanHD Loan Quality Management platform that helps lenders comply with current and new reporting requirements under the Home Mortgage Disclosure Act (HMDA) taking effect in January of 2018.

“With loan costs at all-time highs, lenders need to find an efficient way to collect and report all data required for HMDA reporting,” said Brian Fitzpatrick, President and Chief Executive Officer of LoanLogics. “By automating quality control checks of their HMDA data with our new HMDA Audit module, lenders can gain peace of mind that the data they report to regulators is consistently complete and accurate.”

Best Rate Referrals has announced the launch of Mortgage Advisor (MortgageAdvisor.com), a featurerich Web site that will make it easier for consumers to navigate the mortgage financing process and connect with lenders. The new site will serve as a one-stop mortgage financing shop that matches consumers with lenders that best meet their financing needs. Mortgage Advisor will also offer a variety of informational resources and tools, including mortgage calculators, rate comparisons, expert advice, lender ratings and reviews.

“Best Rate Referrals understands today’s consumers aren’t driving around to brick-and-mortar lenders, they’re going online seeking information and efficiency with the largest purchase of their lives,” said Ray Bartreau, Senior Vice President of Mortgage Partnerships at Best Rate Referrals. “The landscape of the lending market continues to evolve, bringing convenience, customer experience and value to a process that can often be painful for borrowers. With Mortgage Advisor, we built a marketplace where

borrowers can try to find their mortgage match whether the loan originates from a bank or a nonbank—it’s the right mortgage solution for their needs.”

Through Mortgage Advisor, consumers can access a variety of loan products and lenders as well as compare the best available market rates.

“In addition to a robust digital experience with tools and expert advice, borrowers who don’t want to exclusively find a mortgage online are welcome to call us and ask for help,” said Bartreau.

launched last year, provided distribution through loan origination systems (LOSs).

The Web version of Portfolio Producer enables secondary market players to reach third-party originators (TPOs) regardless of the LOS they use, and to promote their products via an interactive prequalification tool with a unique URL, which they can embed in their own Web sites. Wholesalers can decide whether to grant engine access only to existing clients or to provide universal access to reach all prospective originators.

Portfolio Producer allows any

TPO to run loan scenarios to determine eligibility and pricing for different product options in realtime. Not only does this give the originator an early indication of the likelihood that the loan would be approved, but Portfolio Producer can also generate a custom-tailored loan submission checklist to help the TPO put together a complete file package the first time through, avoiding last-minute surprises after submission and going back to the borrower for additional documentation. The wholesaler can even enable originators to render a full automated underwriting findings

report right at the point-of-sale, to provide the loan-level guideline analysis needed particularly in nonagency lending.

For wholesalers and investors, Portfolio Producer is a more efficient way to distribute and promote their product offerings to originators, with an interactive, self-service tool available 24/7. It reduces “false starts” that can increase operating costs, require adverse action, and lead to a bad experience with TPOs and the borrowers they serve.

“As secondary market players continued on page 18

Radian Integrates With Path LOS to Offer Mortgage Insurance

LoanScorecard has announced new turnkey Web features for Portfolio Producer, its online product distribution system that enables wholesalers and investors to efficiently market to and interact with correspondent lenders and brokers.

The initial version of the product,

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LoanScorecard Enhances Its Portfolio Producer Online System

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PathSoftware has announced that Path, its cloud-based mortgage loan origination software (LOS), is now integrated with Radian Guaranty Inc., the mortgage insurance (MI) subsidiary of Radian Group Inc. This direct connect integration allows Path users to obtain rate quotes and order MI on both a delegated and non-delegated basis, and submit documents without leaving their LOS. MI premiums are also autopopulated into the appropriate fields in Path to help streamline the MI ordering process, improving efficiency and productivity.

“We’re proud to partner with a forward-looking loan origination platform like Path to make it even easier for lenders to do business with us,” said Brien McMahon, Chief Franchise Officer at Radian. “This integration enables us to deliver realtime quotes and simplify the MI ordering process for current and prospective customers.”

Doug Mitchell, Director of Sales and Support at PathSoftware, said, “Direct integrations with our partners are essential to streamlining the mortgage origination process for our customers. By partnering with Radian, our clients can now easily order MI directly from one of the nation’s top providers.”

WSFLASH y SEPTEMBER 2017 y NMP NEWSFLASH y SEPTEMBER 2017 y NMP NEWSFLASH y SEPTEM

UWM Offers First Virtual E-Closing

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United Wholesale Mortgage (UWM) has introduced the nation’s first virtual e-closing experience, where borrowers can complete a full mortgage transaction without ever leaving their home or wet signing a single document.

“This is a revolutionary time for borrowers and independent mortgage brokers, as we’re taking convenience in the mortgage process to a completely new level,” said Mat Ishbia, President and Chief Executive Officer of UWM. “The days of being bombarded with reams of paper at the closing table are over. Giving borrowers the ability to close a loan whenever they want, whether it’s at 11:00 a.m. or 9:00 p.m., will have an incredible impact on the entire experience. Independent mortgage brokers will have an even stronger competitive advantage over retail competitors and large banks.”

Whereas previous versions of e-closings still required some in-person contact with a notary to e-sign closing documents via a shared tablet, UWM’s remote e-closing technology eliminates that step. A borrower can be anywhere that has Wi-Fi access–their home, a coffee shop, etc.–and use a computer or mobile app to “FaceTime” with a notary to actually

complete the closing live, right there. The process allows for all documents to be signed, including the promissory note and mortgage.

Currently, UWM’s virtual eclosing technology is available to brokers in four states (Illinois, Montana, Virginia and Washington), and will be expanding its reach throughout the rest of this year. The only thing holding back all of the states from being approved is legislative rules around notarizing documents, as each state has varying legislative requirements.

Currently, this new way of closings mortgages pertains to refinance loans and is limited to mortgages that have a maximum of two borrowers.

UWM’s historical first virtual e-closing was completed on July 28 with borrowers in Chicago.

The remote e-closing platform is the next wave of technology that UWM has brought to market to help its network of independent mortgage brokers compete with large banks and mega retail lenders. It follows the March release of Blink, an all-digital, multi-functional loan portal that allows consumers and mortgage brokers to start the loan application process from their mobile device, pull their credit, e-sign documents, verify assets, and track the status of their loans from anywhere.

New Forecast: 300K Mortgage Delinquencies From Harvey

The devastation left behind by Hurricane Harvey could result in 300,000 new mortgage delinquencies, with 160,000 borrowers becoming 90 days or more past due, according to a new forecast from Black Knight Financial Services (BKFS).

This new forecast is based on a comparison to the 2005 damage left by Hurricane Katrina, when mortgage delinquencies in FEMA-designated disaster areas across Louisiana and Mississippi soared by 25 percentage points and peaked at over 34 percent.

The areas impacted by Harvey have twice as many mortgage properties as those impacted by Katrina—Black Knight estimated there are 1.18 million mortgaged properties in Hurricane Harveyrelated FEMA disaster areas, with $179 billion in unpaid mortgage balances.

However, Black Knight Data & Analytics Executive Vice President Ben Graboske noted the federal government has some buffers in place to block a potential mortgage catastrophe.

“Thankfully, Fannie Mae, Freddie Mac and the Federal

Housing Administration have all announced temporary moratoria on evictions and foreclosure sales in Harvey-related disaster areas,” Graboske said. “With these three organizations accounting for nearly 900,000 of mortgaged properties, the moratoria should help temper the negative effects. Forbearance plans will help as well, though interest on the mortgage will continue to accrue under any of these efforts.”

Carrington Charitable Foundation Collects Care Packages for Active Servicemembers

As part of its commitment to supporting U.S. military men and women, Carrington Charitable Foundation (CCF), the non-profit organization of The Carrington Companies, conducted its annual Boxes for Our Troops Challenge, collecting nearly 2,400 care packages for active duty service members deployed around the world. The 2017 challenge is the most successful in the event’s eight-year history, and more than doubled the 2016 total of 1,008 boxes.

“This effort means a lot to me, with both my youngest son and his wife currently deployed to Afghanistan for the next eight months with the U.S. Army’s 82nd Airborne Division,” said

The National Flood Insurance Program (NFIP), which was set to expire on Sept. 30, was extended until Dec. 8 in a legislative

the legislation into law.

The extension of the NFIP is separate from HR 2874, also known as the 21st Century Flood Reform Act, which was introduced in the House of Representatives in June but has yet to be considered by the House Financial Services Committee. President Trump has not stated whether he supports this bill, which was the backing of trade industry groups including NAMB—The Association of Mortgage Professionals and the Mortgage Bankers Association.

William E. Brown, President of the National Association of Realtors (NAR), welcomed the temporary extension of the NFIP. “Extending the National Flood Insurance Program was a mustdo item, and Congress delivered,” Brown said. “That’s good news for consumers, as well as an opportunity for proponents of meaningful reform.

With a short extension on their side, leaders in the House and Senate should continue work on the 21st Century Flood Reform continued on page 16

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NFIP Extended Until Dec. 8

package signed by President Trump on Friday afternoon that authorized $15 billion in emergency funding for Hurricane Harvey victims and raised the debt limit and funding of the federal government.

“As the damage from Hurricane Irma unfolds, it is especially important that the men and women in the Southeast and our Caribbean territories stand strong and rest assured that this Administration will always put the needs of the American people above partisan politics as usual,” said the president after signing

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Mike Dorner, Senior Vice President of Operations for Carrington Property Services, who rallied three Carrington companies and his teams to donate more than $11,000 and 500 boxes to this initiative. “I personally know the value these boxes bring to our troops. Soldiers like my son spend the majority of their time in the field with limited access to hot meals and running water. When they come back to base and get a care package from home, they know they’re in our thoughts and prayers.”

The annual event was created as a way for Carrington Associates across the country, some of whom are veterans, to personally honor and show their appreciation for the servicemen and women currently serving the country.

“We realize many of our activeduty military rarely receive mail, leaving them to cope without words of encouragement and support from friends and family back home, and we wanted to change this,” said Shelly Lawrence, Executive Director of Community Relations for the Carrington Charitable Foundation.

“Every year, Boxes for Our Troops gives Carrington Associates a fun opportunity to rally together-as a team or individually-and create care packages filled with basic supplies, other personal items and notes, to show we care and are thinking of our servicemembers.”

All nine major Carrington office locations participated in the Boxes for Our Troops challenge, generously donating many thousands of dollars’ worth of items, then wrapping, packing and shipping the boxes to servicemen and women serving on land and at sea. Gift box contents ranged from snack foods, breakfast items and bath and hygiene products to board games, footballs and a variety of reading materials. Some boxes were decorated with personal sentiments and themes and included thank you notes and photos of the Carrington team that put it together.

Reverse Mortgages: From Stigma to Smart Business Strategy

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he reverse mortgage has historically been seen as a product of last resort. But in recent years, a number of positive changes have led to new benefits and safeguards for both lenders and borrowers. As a result, perception of Home Equity Conversion Mortgages (HECMs), commonly known as reverse mortgages, has been shifting.

They’re now understood to be a smart strategy for older Americans, and a significant business growth opportunity for mortgage originators.

A HECM is a highly flexible loan option specifically designed for homeowners and homebuyers age 62-plus. FHAinsured1 HECM products include refinance, line of credit, and home purchase options, all with a flexible repayment feature: Borrowers can pay as much or as little as they like toward principal and interest each month. As with any home-secured loan, they must keep current with property taxes, insurance and maintenance.

This product serves an expanding demographic that is feeling a financial pinch in retirement. According to a recent study conducted by the National Council on Aging and funded by Reverse Mortgage Funding LLC (RMF), 83 percent of older adults are concerned about having enough money to live comfortably in retirement and worry about outliving their savings. Paired with another of the study’s key findings–that home equity represents a whopping 60 to 80 percent of their total net worth–an enormous opportunity is revealed: To deliver a potentially more suitable solution to this important consumer segment.

Take the HECM Line of Credit, for example. It has several key advantages over a traditional home equity line of credit, including the flexible repayment feature, which gives borrowers greater financial control. Additionally, the unused portion of their credit line grows over time, providing more available funds. And its nonrecourse feature means they will never owe more than the home is worth.

For older Americans looking to buy a new home, the HECM for Purchase option makes it easier for them to afford the one they really want. It also allows them to maintain more funds to spend on other things. This could increase the buying power for a large portion of your customers. In fact, 25 percent of all new homebuyers are age 60 and above.

Adding this versatile loan option to your product mix is not difficult. RMF, an industry leader, provides the expertise and resources to help originators seamlessly enter the business and excel. To learn more or register for an educational Webinar, call (866) 318-2981 or visit Partners.ReverseFunding.com/LearnMore.

Footnote 1—This material has not been reviewed, approved, or issued by HUD, FHA or any government agency. The company is not affiliated with, or acting on behalf of or at the direction of, HUD, FHA or any government agency.

NOT FOR CONSUMER USE © 2017 Reverse Mortgage Funding LLC, 1455 Broad St., 2nd Floor, Bloomfield, NJ 07003. Company NMLS ID# 1019941. www.nmlsconsumeraccess.org. Equal Housing Lender. Not all products and options are available in all states. Terms subject to change without notice.

Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval. L1093-Exp062018 RMF delivers leading products so originators can grow their business by adding HECMs. Call (866) 318-2981 or visit Partners.ReverseFunding.com/LearnMore.

SPONSORED EDITORIAL

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continued from page 15

Act to strengthen the NFIP and ensure the long-term certainty that current and future homeowners demand.”

HUD Updates MIP for HECM Program

The Department of Housing and Urban Development (HUD) has announced changed to its Home Equity Conversion Mortgage (HECM) program.

In a statement issued by HUD, the department noted that the initial mortgage insurance premium (MIP) will become two percent of the maximum claim account, effective on Oct. 2. This is a revision from a previous schedule of either 2.5 percent for higher draws or 0.50 percent for lower draws.

“HECM’s annual MIP will be 0.50 percent of the outstanding mortgage balance, reduced from the prior schedule for all borrowers from 1.25 percent,” the HUD announcement added.

“This change provides fee relief for all borrowers in the program, and preserves more equity for borrowers over time by slowing the rate at which the loan balance grows.”

HUD is also planning to announce new Principal Limit Factors (PLFs), the amount that seniors can draw on their reverse mortgages, although no date was set on when that announcement would be made.

HUD Secretary Dr. Ben Carson announced the changes on Twitter. “Given the losses we’re seeing in the HECM program, we have a responsibility to make changes that balance our mission with our future responsibility to protect taxpayers,” he tweeted.

David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), welcomed the news from HUD. “MBA applauds the announcement by HUD that it is modifying premiums and distribution limits in the HECM program, moves designed to strengthen the FHA fund and lessen risk to taxpayers,” he said.

“Reverse mortgages are an important financial product for our nation’s seniors, but the program needs to remain

financially viable if it is to continue to offer its benefits into the future.”

New Tech Conference to be Aimed at Women Mortgage Professionals

The mortgage industry will soon have its first technology-focused trade conference aimed at women executives.

NEXT Mortgage Events LLC will host the tech-centric conference for women mortgage professionals on Jan. 18-19 at the Dallas InterContinental. The conference already has a stellar line-up of guest speakers, including Marcia Davies, Chief Operating Officer at the Mortgage Bankers Association; Tracy Stephan, Director of Enterprise Innovation at Fannie Mae; Tiana Laurence, author of Blockchain for Dummies and Co-Founder and CMO of Factom and mortgage journalist Rob Chrisman. NAMB—The Association of Mortgage Professionals is a partner with NEXT in this conference.

“With origination volume expected to decline in 2018, lenders need to know which technologies can help them grow and stay profitable—that’s exactly where NEXT comes in,” said Molly Dowdy, Co-Founder of NEXT, an Edmond, Okla.-based company that hosts events for women mortgage executives.

“NEXT’s goal is to position attendees as the ‘what’s NEXT’ experts inside their organizations.

That’s particularly important in declining markets, like the one that’s predicted for 2018.”

Industry Groups Press FHFA on Alternative Credit Scoring

A coalition of housing and mortgage trade associations has called on the Federal Housing Finance Agency (FHFA) to expand use of alternative credit scoring models at Fannie Mae and Freddie Mac. In their appeal to the FHFA, the trade groups pointed out that continued on page 30

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By Mat Ishbia

Conventional one percent down program reddie Mac has eliminated conventional one percent down from its product offerings, but the program is still alive and being offered by a lot of lenders. Now, it’s a bigger competitive advantage than ever before because fewer lenders have access to it. Brokers can differentiate themselves and stand out among real estate agents and borrowers. If done the right way, it’s one of the best programs in the market. Borrowers are getting the same rate and deal that they would if they paid their own three percent downpayment, but they are getting free money from the lender. Now is the perfect time for brokers who have access to one percent down programs to really promote it.

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The new conventional high LTV streamlined refinance The Federal Housing Finance Agency (FHFA) has rolled out the new conventional high-LTV streamlined refinance program, and it will be available for loans that are originated after Oct. 1, 2017. It effectively replaces the Home Affordable Refinance Program (HARP). It’s not a new FHA streamline or VA IRRRL for conventional. It’s nice that it’s out there. It might be used in the future. But it’s not going to have a big impact on business.

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Richard Cordray, Director of the CFPB There are a lot of rumors swirling around that Richard Cordray is going to resign as the Director of the Consumer Financial Protection Bureau (CFPB) to run for Governor of Ohio. If he does, what will happen to the industry? Here’s my take: It’s not going to make a major impact on the industry. The mortgage industry is strong and consumers are in a better position now because of the CFPB and Director Cordray’s leadership. We’re all doing big things right now, and consumers are in better shape than ever before.

Mat Ishbia is president and CEO of United Wholesale Mortgage, a Troy, Mich.-based provider of mortgages for independent brokers nationwide. One of the nation’s leading advocates of independent mortgage brokers and wholesale lending, Mat has changed the lending platform, turning UWM into a $20 billion company and a top national workplace.

SPONSORED EDITORIAL

new to market

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become more comfortable with non-agency and portfolio lending, having an efficient way to build awareness, trial and trust among TPOs becomes critical. The latest version of Portfolio Producer allows investors to cast a ‘broad net,’” said Ben Wu, Executive Director at LoanScorecard. “With Portfolio Producer, wholesalers can provide current and prospective TPOs access to their unique website, branded with their logo and product offerings. This allows wholesalers to deliver realtime pricing with dynamic guideline feedback pre-submission to reduce the back and forth between the originator, account executive, and underwriter.”

and always has been to deliver great rates, great products, and great service by offering the best mortgage loan experience to each and every client.”

Clayton Introduces Private Label Securitization Readiness Solution

Clayton Holdings LLC has announced that it is offering a comprehensive securitization readiness solution for non-agency assets. The end-to-end offering includes advisory and preparedness support for presecuritization due diligence review, originator and guideline assessment and ongoing MC Financial Launches New monitoring structure and setup. eClosing Service The solution is designed to help lenders and aggregators prepare for compliance with the new requirements and expectations for MC Financial Inc. has unveiled the private label securitizations (PLS), latest in their digital mortgage transition with the integration of an and to assure that asset reviews and reporting capabilities will meet eClosing service.

This announcement reaffirms MC current guidelines prior to issuance.

The solution includes a review of Financial Inc.’s philosophy of relevant scope and process “making a positive impact for a requirements, including a rating homeowner” as they focus on agency-accepted assessment of dominating and disrupting the credit underwriting, data mortgage industry versus management, regulatory disrupting the potential homeowners’ life while applying for compliance, valuation and potential fraud. a mortgage. The eClosing service As an accepted third-party will have Fannie Mae and Freddie reviewer by all Nationally Mac approval through industry partnerships. The service will allow Recognized Statistical Rating a homeowner to electronically sign Organizations (NRSROs) and the first company rated by Morningstar all necessary loan documentation and Fitch as a deal agent and including the eNote (Promissory representation and warranty Note) independent of physical reviewer, Clayton is uniquely location. It will be a true digital positioned to assist in the design notarization transaction with video and implementation of due chat service connecting diligence and ongoing oversight homeowner to a certified Notary structures and controls sought by Signing Agent via mobile phone, the NRSROs and the PLS investor tablet or desktop computer. The community. eClosing service will address the “Currently, a growing number of need of our 21st Century consumer lenders and aggregators are and provide transparency in realactively considering entry into the time. private label securitization market “Our announcement for the or at least understanding their eClosing initiative is just another options,” said Jeff Tennyson, step in becoming a digital President of Clayton. “Our mortgage leader in the industry,” securitization readiness solution will said Ray P. Cruz, Managing help new issuers jumpstart the Partner at MC Financial. “We have not made these investments process and prior private label issuers be prepared for new lightly, but have taken in requirements they will face. This feedback from our clients and partners along with a heavy dose offering is another example of how Radian and Clayton continue to of industry data. We are not comfortable with being followers, offer innovative products and services to the mortgage industry.” so with a conscious effort to disrupt the industry we jumped in head first. Our number one goal is continued on page 95

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JOANNE JOHANSEN

BRIAN ROBINETT

STETSON LOWE

BRIAN JACKSON

Platinum Mortgage Solutions Inc. Wallingford, CT Est. March 2017

Tier 1 Mortgage Group, LLC Thousand Oaks, CA Est. October 2016

Creekside Mortgage Pleasant Grove, UT Est. April 2017

The Scout Team Mortgage Lending Services & Solutions, Lake Elsinore, CA, Est. April 2017

ADRIAN PLACINTA

ALFREDO SALDANA

BECKY KOONTZ

LYNNE MARIE ROESCHLAUB

True Path Loans Lake Forest, CA Est. February 2017

JP Mortgage LLC Ashburn, VA Est. April 2017

Senior Reverse Mortgage Albuquerque, NM Est. April 2017

1st Look Mortgage, LLC Louisville, KY Est. May 2017

BENJAMIN PETKEWICH

BRIAN CURL

SAM DIPIANO

ROBIN GILMORE

Sandstone Home Loans Las Vegas, NV Est. June 2017

Wholesale Mortgage Source, LLC Louisville, KY Est. March 2017

HAUS Capital Corporation Rochester, NY Est. July 2017

Americaâ&#x20AC;&#x2122;s Local Lender San Diego, CA Est. April 2017

CHRIS FRECK

DAN TRAN

DORELLE PETERS

TAMALA STEWART

EstaR mortgage Alameda, CA Est. December 2016

Transcend Mortgage Inc. Malden, MA Est. September 2016

Metro Mortgage Group, LLC Denver, CO Est. November 2016

New Season Mortgage, LLC Parker, CO Est. July 2017

GERALD A. BLISS

GLORIA M. WITHERS

Bliss Mortgage LLC Tampa, FL Est. January 2017

MetaSouth Mortgage, LLC Buena Vista, GA Est. June 2017

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MARTIN LEHMAN

AND

STEPHEN PARNELL

New Florida Mortgage Palm Beach Gardens, FL Est. March 2017

JEREMIAH REGAN Hawthorn Grove Financial Northville, MI Est. June 2017

SUSAN BENNETT Park Grove Lending, LLC Phoenix, AZ Est. May 2017

MidState Brokers Arroyo Grande, CA Est. April 2017

Allied Mortgage Finance, LLC Deerfield Beach, FL Est. April 2017

your picture here

Join these new broker/owners and others who have received up to $10,000 startup cash from NAMB KickStart.

NAMB KickStart has already awarded nearly 50 former big bank and retail loan officers over $400,000 to start their own independent mortgage companies, along with training and guidance to help them succeed. You should be next.

Apply today at nambkickstart.com

YOUR NAME

A NAMB Program Founding Sponsor UWM

n National Mortgage Professional Magazine n SEPTEMBER 2017

PAULO SILVA

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JUSTIN STEARNS

READY TO KICKSTART YOUR OWN MORTGAGE BUSINESS? YOUâ&#x20AC;&#x2122;LL BE IN GOOD COMPANY.

N A M B

P E R S P E C T I V E

NAMB President’s Message: September 2017 Ongoing With a Thriving NAMB s I am thinking back to my last year as NAMB’s President, it is not a goodbye for me to inspire and mentor. This is one true pleasure and the duties that I have taken on have filled me personally with great JOY! I don’t want this last article of mine as President to be a farewell or seeing me set off into the sunset of our organization nor service to NAMB. Just the contrary. It gives me the unique opportunity as other Past Presidents and NAMB leaders to rally and inspire future leaders of NAMB and its state affiliates.

As I wrote a few months ago … I asked the question of why we lead. We all have our motivations, whether it is true commitment to service or the true pleasure one feels when leading. Regardless, we have so many leaders that we need to nurture and inspire.

This year has been incredible. I have personally grown as a person, and thus made and connected with so many of our members around the country. I won’t hesitate to say that this year had its challenges, but that is why we have so many great leaders that lead your association every day. I am so honored to have our Board of Directors, Committee Chairs and our paid staff. Without any one of them, we would not have kept our association on course and thriving. Yes thriving … we have gone beyond surviving. It is amazing how we were able to go around the country and bring NAMB nationwide. We had one of the best Legislative & Regulatory Conferences in terms of attendance in recent years and in terms of content. We have some awesome leaders who truly give of themselves.

I was looking back at some of my writings over the last couple of years, and I found an excerpt on leadership that I wanted to emphasize for my article as NAMB’s President:

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“A leader steps up in times of crisis, and is able to think and act creatively in difficult situations.

“Unlike management, leadership cannot be taught, although it may be learned and enhanced through coaching or mentoring.

“Remember, a key difference between managers and leaders is that managers have subordinates, leaders have followers.”

Just because you have a title of “manager,” it does not necessarily makes you a good and effective leader. Management is doing things right! Leadership is doing the right things!

You, as a leader, must model the way and inspire to follow a vision. Above all, leaders must encourage the heart. Pay attention to what is happening in the hearts of others (what are others passionate about/care about). Show people you care and they will follow.

“A leader takes people where they want to go. A great leader takes people where they do not necessarily want to go, but ought to be.”– Rosalynn Carter, former First Lady I have had so many great mentors impact my life over the past 15 years, and I will absolutely make sure that I pay it forward. With that said, I am asking all state and national leaders to do the same. As a state or national president, it cannot be a race to the finish line to become Past President. We have all accumulated so much wisdom and we need to pass it on to the next generation of leaders. Just read NAMB’s Mission Statement and the Mission Statement of most of our state affiliates … it is to advocate and educate.

I cannot leave you with an excerpt from Theodore Roosevelt’s 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 is Vice President of Enterprise Retail Production at American Pacific Mortgage. He is currently President of NAMB— The Association of Mortgage Professionals and Past President of the California Association of Mortgage Professionals (CAMP). He can be reached by e-mail at Fred.Kreger@APMortgage.com or call (661) 400-8905.

Message From NAMB President-Elect John G. Stevens, CRMS This fall, I will begin my term as president of NAMB—The Association of Mortgage Professionals. As I consider my goals and aspirations for the upcoming year, I want to take the time to share my mission and commitment to NAMB and the industry as a whole.

As President, I will focus on driving financial literacy in America, advocating for our industry in Washington, D.C. and empowering our professionals.

Education As mortgage professionals, our job is about more than helping people achieve the American Dream of homeownership, but making sure they are educated about the responsibility that comes with it.

Our collective goal–and one I’ll be focusing on next year–is to increase financial literacy, which will enable homeowners to acquire and keep their homes long-term.

But my commitment to education extends past our clients. Our members need to constantly be educating themselves to ensure that they understand today’s markets, and are aligning themselves with companies who have the products and technology to succeed in the today’s ultra-competitive housing market. As mortgage professionals, we need to stay educated on the current market so that we can recognize the right business partners who can help us offer smart advice and an easy process quickly to our clients.

Seeing how NAMB members educate themselves on their various options and choose the ones that are right for them is a trend that I’m looking forward to seeing continue next year.

Advocacy With the regulatory uncertainty stemming from Washington, we’ve all found ourselves discussing the potential repercussions and impacts of new regulations. The law is the law, and the rest needs to be dismissed as just chatter. And, there is a huge difference between chatter and directly engaging with lawmakers–that is where NAMB comes into play. We engage directly with lawmakers to collaborate and help them understand how lawmaking can create the best outcomes for our consumers and industry. As our membership grows, I am excited to extend this conversation to more colleagues.

Empowerment I hope to empower my fellow colleagues to be difference-makers and join NAMB. Our industry changes on a daily basis, so it’s important to understand the issues we face. As an active member of NAMB, you will be aware of proposed regulations and how they could affect you and your business. That knowledge is not only key to the survival of our industry, but to the survival of your career.

That’s why this year, I plan to take our trainings on the road,

N A M B

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holding multiple Webinars and trainings throughout the nation. I will also be expanding our industry partner program, making it easier for our members to be more aware of the loan programs available to them and allowing the power of knowledge to drive their careers. I look forward to sharing these benefits with others as we continue to expand our membership.

Why Do I Need NAMB?

John G. Stevens, CRMS is President-Elect of NAMB— The Association of Mortgage Professionals, and Vice President of Business Development for RPM Mortgage, the 17th-ranked retail non-bank lender in the U.S. He has been actively involved in NAMB and industry thought leadership since 2010. Stevens has been recognized as one of the most influential and connected mortgage professionals in the industry. He may be reached by phone at (801) 427-7111 or e-mail JohnGStevens@gmail.com.

NAMB.org … JOIN TODAY! l NAMB Testifies Before Congress

UWM Commits Additional Funding to NAMB’s KickStart Program

l NAMB Works With the CFPB l NAMB Participates in Multiple Regulatory/CFPB Panels l NAMB Webinars l Full-Time NAMB Lobbyist on Capitol Hill l NAMB Protects Your Business l NAMB Forms Industry Coalitions l NAMB Education

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For detailed information, visit NAMB.org.

Are You an NAMB Lending Integrity Seal of Approval Holder?

(No additional costs to NAMB members)

LendingIntegrity.org Click on EARN the Seal NAMB members ONLY–Log in to the Lending Integrity site with your NAMB User ID and Password (If you do not know your User ID and Password, type in your e-mail and click log-in and the system will send you a password. If you have any issues, please call (972) 758-1151 or e-mail Membership@NAMB.org).

Lending Integrity Requirements

l l l l l l l l l

The Lending Integrity Seal of Approval is awarded only to mortgage originators who meet specific requirements. To earn the privilege to display the Seal, mortgage brokers and loan officers must: Be an NAMB member Meet the requirements of the SAFE Act Pass a national criminal background check Attend eight hours (or equivalent) of professional development education each year Attend two hours (or equivalent) of ethics training every other year or each license renewal cycle Provide professional references Subscribe to NAMB’s Best Business Practices Agree to NAMB’s Code of Ethics Must be renewed annually

n National Mortgage Professional Magazine n SEPTEMBER 2017

How to Apply for your National Lending Integrity Seal

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United Wholesale Mortgage (UWM) has announced that it has contributed an additional $100,000 to the KickStart program being run by NAMB—The Association of Mortgage Professionals. The move is sparked by UWM’s desire to continue supporting entrepreneurs and enhancing the presence of mortgage brokers throughout the country.

“We are passionate about helping mortgage brokers grow and thrive, as we believe it is the best way for a consumer to get a loan and the best place for a loan originator to work,” said Mat Ishbia, President and Chief Executive Officer at UWM. “Brokers are a more efficient and cheaper model than retail lenders and banks. We are excited to continue supporting their growth by contributing to the NAMB KickStart program.”

NAMB KickStart has been an effective growth engine for the industry, serving as a springboard to more than 40 independent mortgage broker shops throughout the country since the program launched in September 2016. Recipients are gifted up to $10,000 for initial startup cost such as office space and furniture, loan origination software and even leads.

UWM supported NAMB KickStart out of the gates, pledging $500,000 as the program’s founding sponsor.

“Although we are the founding sponsor, KickStart isn’t a UWM thing … it’s about growing the entire wholesale mortgage channel,” Ishbia said. “We’d love to see more wholesale lenders and providers hop on board and contribute to the program. With more funding NAMB and KickStart can help support more entrepreneurs start mortgage broker shops, which ultimately benefits everyone.”

Up until 2008, independent mortgage brokers made up nearly 33 percent of the mortgage market. Currently, they hold around 13 percent of the mortgage market and are trending upward.

In a survey that NAMB distributed to approximately 200 retail loan originators and bankers around the country prior to launching KickStart, roughly 70 percent of respondents reported an interest in owning their own mortgage shop. In the same survey, 44 percent of respondents indicated money as their primary barrier to opening their own business, but 60 percent said they would be more inclined to take the chance if given assistance with the startup costs.

N A M B

P E R S P E C T I V E

NAMB National October 14-16, 2017

The Rio All-Suite Las Vegas Hotel & Casino NAMB National, set for Oct. 14-16, 2017 at The Rio All-Suite Las Vegas Hotel & Casino is the premier mortgage conference in the United States focusing on you, the mortgage professional. This amazing event will provide you with: l l l l

Network opportunities with old friends, while making new ones at the trade show; Fantastic breakout sessions presented by the industry’s leading companies; A great keynote speaker session featuring Ann Coulter and; An out-of-this-world end-of-event party showcasing Lou Gramm of Foreigner!

Program of events (as of 09/06/17) subject to change

Friday, October 13, 2017 9:00 a.m.-4:00 p.m.............Exhibitor Load-In (Pavilion 1-6) 10:00 a.m.-Noon ................NAMB Plus Meeting (Janeiro Board Room) 1:00 p.m.-3:00 p.m.............NAMB Board Meeting (Flamengo Board Room) 2:00 p.m.-5:00 p.m.............Exhibitor Set-Up (Pavilion 1-6)

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3:30 p.m.-5:00 p.m.............UWM Advisory Council Meeting–Restricted (Conga) 5:00 p.m.-7:00 p.m.............NAMB Legislative Action Fund Miniature Golf Tournament (Kiss by Monster Mini Golf)

Saturday, October, 14, 2017 8:00 a.m.-11:00 a.m...........NAMB Delegate Council & Annual Business Meeting (Pavilion 7) 8:00 a.m.-11:00 a.m...........Exhibitor Set-Up (Pavilion 1-6) 11:15 a.m.-12:45 p.m.........Keynote Speaker Luncheon Featuring Ann Coulter (Pavilion 9) Ann Coulter is the author of 11 New York Times best-sellers and a frequent guest on many TV shows, including Hannity, Piers Morgan, Red Eye, HBO’s Real Time With Bill Maher, Fox & Friends, Dr. Drew, Entertainment Tonight, The Today Show, Good Morning America, The Early Show, The O’Reilly Factor, and has been profiled in numerous publications, including TV Guide, The Guardian (UK), The New York Observer, National Journal, Harper’s Bazaar, The Washington Post, The New York Times and Elle Magazine. This is a separately-ticketed event at $25 per person.

1:00 p.m.-6:00 p.m.............Trade Show Floor Opens (Pavilion 1-6) 1:00 p.m.-1:50 p.m.............The Commodity Conundrum: How to Differentiate Yourself in a Market Demanding Scalability and Repeatability!, Sponsored by Franklin American Mortgage (Pavilion 9) Speaker: Steve Richman Join Franklin American Mortgage and nationally-recognized mortgage expert Steve Richman, “That MI Guy,” for his new interactive session “The Commodity Conundrum: How to Differentiate Yourself in a Market Demanding Scalability and Repeatability!” This enlightening discussion offers strategies for developing the unique offerings and service you need to stand out from your competition.

2:00 p.m.-2:50 p.m.............Dominate Your Retail Competition, Sponsored by United Wholesale Mortgage (Pavilion 9) Speaker: Mat Ishbia, President/CEO, United Wholesale Mortgage Competition in the mortgage business is intense–each day is a battle to stand out and win clients. As a broker, you’re more equipped with tools to dominate the mega retail lenders than you may realize. Join UWM President/CEO Mat Ishbia, leader of the top wholesale lender in the nation, for an energized coaching session on how you can wow and win clients with a blend of technology, service and marketing that mega retailers can’t compete with.

3:00 p.m.-3:50 p.m.............Driving Sales With Renovation and Construction, Sponsored by American Financial Resources (Pavilion 7) Speaker: Andy Allen, American Financial Resources Learn how to leverage renovation and construction products to increase volume and open new channels of revenue. AFR’s product expert, Andy Allen, will help you explore the various products, the part they play in the current market, and how AFR can help you close these loans with confidence. Don’t miss your chance to gain market share in this growing field.

3:00 p.m.-3:50 p.m.............Driving Productivity, Maximizing Profit and Positioning for Growth in a Dynamic Market Environment (Pavilion 9) Speaker: Stuart Donaldson, Founder and Owner of Banyan Co. This workshop will share with brokers practical suggestions on how to measure productivity, identify strategies to improve conversions and explain the full range of options for brokers looking to introduce new revenue streams into their business model. A hands-on, interactive and engaging session that will challenge your thinking and leave you wanting to explore growth options. Insights into setting financial targets, how to measure and manage key sales drivers, and what is required to embark on a growth strategy will feature. Many businesses overlook the power of managing and measuring productivity drivers to maximize profitability. Learn how to effectively use resources to produce sales, using revenue and productivity modeling.

3:00 p.m.-3:50 p.m...........Breakout Session: Now is the Time—Why Non-QM Lending Today Matters in Growing Your Business, Presented by Angel Oak Mortgage Solutions (Pavilion 10) Reps from Angel Oak will discuss: Non-QM is different than it used to be–do you know how; How to add non-QM to your portfolio and watch your business boom; and how to close more loans using non-QM. continued on page 26

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3:00 p.m.-3:50 p.m...........Breakout Session: Economic Trends in the Mortgage Industry, Presented by Carrington Mortgage Services (Pavilion 11) Speaker: Rey Maninang, SVP and National Sales Director, Carrington Wholesale 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.

4:00 p.m.-4:50 p.m...........Breakout Session, Presented by Frank Garay & Brian Stevens of National Real Estate Post (Pavilion 7) Speakers: Frank Garay & Brain Stevens Frank Garay & Brian Stevens of National Real Estate Post will update attendees on the latest news and trends in the industry during this informative Breakout Session.

5:00 p.m.-5:50 p.m...........Breakout Session: One Small Step in Reverse, One Giant Leap for Your Company, Sponsored by Finance of America Reverse LLC (Pavilion 7) Speaker: Steven Resch, Finance of America Reverse LLC Find out how taking a small step to grow your business with the HECM reverse mortgage program can make big leaps for your company as a whole. With 10,000 Baby Boomers turning 62 daily, this is an incredible, untapped opportunity with high profit pricing! This session includes illustrations of how the HECM can be used to manage wealth and demonstrates why now is the time to offer these loans as part of your clients’ portfolios.

5:00 p.m.-5:50 p.m...........Breakout Session: To be Determined, Presented by Lending Home Inc. (Pavilion 10) 5:00 p.m.-5:50 p.m...........Breakout Session: To be Determined, Sponsored by Axis-AMC (Pavilion 11) 5:00 p.m.-6:00 p.m...........NAMB National 2017 Opening Reception, Sponsored by Caliber Home Loans (Pavilion 1-6)

Sunday, October 15, 2017

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4:00 p.m.-4:50 p.m...........Breakout Session: Going Beyond Transactions—How to Resonate & Win More Business With Millennials, Secure Massive Exposure & Boost Your Bottom Line (Pavilion 9) Speaker: Marsha Wright Marsha Wright is a celebrity influencer and media personality, serial entrepreneur and investor, four-time best-selling author, Huffington Post columnist and business expert seen on TV. She is the CEO of the Digital Exposure Network, which has more than two million followers and 90 million-plus social views a month. Marsha’s social media movements have trended more than 1,000 times worldwide and has garnered four million-plus hashtag shares. In addition to being one of the most highly recognized influencers in the world, she semi-retired at the age of 32, but still selectively works with celebrities, corporations and businesses to help them resonate with and secure more business.

She’s a recognized authority in marketing strategy and a premier thought-leader on the topic of leveraging ‘Strategic Alliances’ to attain every business goal. She joins NAMB National traveling from Asia to keynote and share keys to boosting your mortgage business.

4:00 p.m.-4:50 p.m...........Breakout Session: Building Brand Equity Through Culture, Sponsored by PRMG (Pavilion 10) Speaker: Paul Lucido, National Marketing Director, PRMG Join Paul Lucido, PRMG’s National Marketing Director, as he discusses creating a foundation of core values and principles that translate into a consistent set of actions and behaviors, ultimately establishing a trusted brand within the mortgage industry. Culture is now trending, but what does it really mean to us all?

4:00 p.m.-4:50 p.m...........Breakout Session: Championship Lending, Presented by Quicken Loans (Pavilion 1) Speaker: David Schroder, Vice President, Quicken Loan Mortgage Services Successful origination requires innovation, knowledge of the competition, strategic planning, and grit. Join us in this session to review game film on industry trends, Quicken Loans data and market research that will help you create your plan for a championship season.

10:00 a.m.-6:00 p.m. ........Trade Show Floor Opens (Pavilion 1-6) 11:00 a.m.-11:50 a.m. ......Breakout Session: To be Determined, Presented by Calyx Software (Pavilion 7) 11:00 a.m.-11:50 a.m. ......Breakout Session: The All In One Loan—The Ultimate Sales Tool, Presented by CMG Financial (Pavilion 10) Speaker: Dave Herbst, Division Vice President of Wholesale Lending and All In One Loan Sales Trainer, CMG Financial Let’s be honest, whether QM or non-QM, traditionally designed mortgage products don’t get you more business.

They don’t create curiosity and excitement among realtors, financial advisors, your past clients or those you haven’t met yet, simply because of their ingenuity. In fact, they become harder to sell as interest rates move up, causing a potential slow-down in production as well as your income. But you can change that by incorporating the revolutionary All In One Loan into your business … the ONLY product of its type on the wholesale market today.

11:00 a.m.-11:50 a.m. ......Breakout Session: To be Determined, Presented by Reverse Funding (Pavilion 11) Noon-12:50 p.m. ..............Breakout Session: Boost Your Business With Fix & Flip Loans and Private Lending, Sponsored by RCN Capital (Pavilion 7) Speaker: Jeffrey Tesch, Managing Director & Private Lending Expert, RCN Capital With home flipping in the U.S. at a 10-year high, there has never been a better time to expand your product offerings.

Private lending offers lucrative options for fix & flip deals and other real estate investing scenarios that don’t fit traditional guidelines. In this session, Jeffrey Tesch will teach you how to: Identify profitable solutions for some of your most commonly overlooked leads; leverage fix and flip loans and other private lending products to make more money now; and best present yourself and your borrower to a private lender.

Noon-12:50 p.m. ..............Breakout Session: The New Reverse—FHA’s Program Sure Has Changed, Sponsored by Plaza Home Mortgage (Pavilion 10) Speaker: Mark Reeve, Vice President of the Reverse Mortgage Division, Plaza Home Mortgage FHA has made many changes to the reverse mortgage program over the

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last three years. These changes were designed to protect the consumers, lenders and the MI fund within FHA. The intent was and still is, to create a program to provide housing relief for our aging population in a long-term sustainable manner. This presentation will provide attendees with an overview of these changes, why they are beneficial to the consumer and how the program “plays” into an overall long-term strategy for retirement. This program is no longer a bailout loan or loan of last resort. This one-hour presentation will be fast paced and extremely informative.

Noon-12:50 p.m. ..............Breakout Session: To be Determined, Presented by Stearns (Pavilion 11) 1:00 p.m.-1:50 p.m...........Breakout Session: To be Determined, Presented by REMN (Pavilion 7) 1:00 p.m.-1:50 p.m...........Breakout Session: Converting Your Fallout and Broadening Your Product Offerings Through Alternative Financing, Presented

by Velocity Mortgage (Pavilion 10) Speaker: Jason Haye, Vice President, National Sales Manager, Velocity Mortgage Learn how to leverage your clients’ real estate portfolios more profitably by stepping into the gray area between conventional financing and hard money. We will focus this discussion on financing options found outside traditional funding sources and how these new sources can increase your bottom line while funding fewer loans.

2:00 p.m.-2:50 p.m...........Breakout Session: The Secret Weapon All Loan Originators Need to Know, Sponsored by Plaza Home Mortgage (Pavilion 11) Speaker: Ragen Cunningham, National Renovation Lending Manager, Plaza Home Mortgage In this highly competitive mortgage environment with limited inventory, renovation loans can create numerous opportunities in expanding your business growth! You will learn how to utilize this “secret weapon” of the finance world—as we discuss Borrower, Realtor and Loan Officer benefits, while exploring fresh new marketing techniques to help set you apart.

3:00 p.m.-3:50 p.m...........B.Y.O.B. Power Workshop, Presented by FirstFunding Inc. and Finance of America (Pavilion 7) Whether you are an existing business owner, looking to become a business owner or just want to think like a business owner, you will want to attend the BYOB Power Workshop! This Power Packed Session will highlight what you need to build your business! We’ve pulled some of the best in the business together for this action packed session. Join, Ginger Bell, Education Specialist for Go2training as she leads this fastpaced discussion with Jim Dunkerley, President of FirstFunding, Terri Buckman, Senior Vice President of Finance of America Wholesale, Garrett Griffin, National Non-Delegated Sales Manager for Finance of America Mortgage, and Philip Villasana, President of Focus Fulfillment.

3:00 p.m.-3:50 p.m...........Breakout Session: To be Determined (Pavilion 10) 3:00 p.m.-3:50 p.m...........Breakout Session: To be Determined (Pavilion 11) 5:30 p.m.-6:00 p.m...........Raffles, Prizes Announced (Pavilion 1-6) 7:00 p.m.-10:00 p.m.........End of Event Party, Featuring Lou Gramm of Foreigner (Pavilion 9) This is a separately-ticketed event at a cost of $49 per ticket.

Monday, October 16, 2017 8:00 a.m.-5:00 p.m. ..........Eight-Hour NMLS CE Course (Pavilion 10) This is a separately-ticketed event at a cost of $79 per ticket.

9:00 a.m.-Noon ................Certification Prep Class (Pavilion 11) This is a separately-ticketed event at a cost of $65 per ticket.

9:30 a.m.-10:50 a.m. ........Breakout Session: Secondary Marketing for Brokers, Sponsored by Freedom Mortgage Corporation (Pavilion 9) This informative session will cover everything from pricing, servicing values and how they impact pricing, duration and impact on churning, securitization requirements, etc. In addition, it will touch on the general differences that impact a broker vs. non-delegated (mini) correspondent.

11:00 a.m.-Noon ..............NAMB Legislative Update, Featuring NAMB Lobbyist Roy DeLoach (Pavilion 9)

For more information on NAMB National, visit NAMB.org.

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2:00 p.m.-2:50 p.m...........Breakout Session: Don’t Even Think About Doing Reverse Mortgages Without the Most Powerful Technology and Training in the Industry, Presented by Reverse Vision (Pavilion 7) Speakers: Wendy Peel, Vice President & Bob Talpas, Account Manager, Reverse Vision If you’re ready to adopt the Generational Lending strategy for your most valuable, senior consumers to enhance your portfolio and create a “reverse” lead funnel, then you must first equip yourself with the only technology that will give you a competitive edge. ReverseVision’s end-to-end loan origination solution (LOS), RV Exchange (RVX) connects your pipeline with robust reverse mortgage sales tools and flows data into the LOS for broker originating and processing. Every wholesale partner in the industry is connected to RVX allowing LOs to select the best lending partner for their needs. Learn how you can originate, process and close faster with the technology 10 of the top 10 wholesale lenders leverage.

2:00 p.m.-2:50 p.m...........Breakout Session: To be Determined, Presented by Freddie Mac (Pavilion 10)

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1:00 p.m.-1:50 p.m...........Breakout Session: An Introduction to Reverse Mortgages for Originators— Prepare Your Business for the Future by Getting Into Reverse, Sponsored by Reverse Mortgage Funding (Pavilion 11) 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. HECMs 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, over 10,000 Baby Boomers turn 65. 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 our turnkey origination platforms make it easy to enter the reverse mortgage business and increase revenue.

Many lenders also use ReverseVision’s product solutions to connect their traditional LOS to RVX resulting in one system of record, reduced risk, minimized errors and increased efficiency.

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Floor Plan of the Rio Convention Center/Pavilion Ballroom List of exhibitors (as of 09/06/17) â&#x20AC;˘ Subject to change

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ALPHABETICAL LISTING Company Name Booth # AAG ............................................................................................................207 ACC Mortgage............................................................................................504 Acopia ........................................................................................................106 Act Appraisal ..............................................................................................512 Allianz IQ Solutions ....................................................................................519 American Financial Resources....................................................................416 American Mortgage Bank ..........................................................................210 AmWest Funding Corporation ....................................................................423 Angel Oak Mortgage Solutions ..................................................................102 Appraisal Links ..........................................................................................508 Appraisal Nation ........................................................................................625 Avantus ......................................................................................................613 Axis AMC....................................................................................................707 BCHH Title ................................................................................................330 Best Rate Referrals ....................................................................................304 BioMetric Signature ID ..............................................................................525 B of I Federal Bank ....................................................................................522 Caliber Home Loans ........................................................................222 & 224 CalSurance ................................................................................................612 Calyx ................................................................................................217 & 219 Cardinal Financial ............................................................................703 & 705 CardTapp ..................................................................................................132

Carrington Mortgage Holdings ........................................................305 & 204 Citadel Servicing ........................................................................................623 Civic Financial Services ..............................................................................606 CMG Financial ............................................................................................323 CodeKase ..................................................................................................324 Comergence ..............................................................................................503 Dart Appraisal ............................................................................................313 FundLoans..................................................................................................329 Endeavor America Loan Services ..............................................................230 Fannie Mae ................................................................................................309 FBC Mortgage Wholesale/Correspondent ..................................................326 Finance of America ....................................................................................431 Finance of Americaâ&#x20AC;&#x201C;Reverse ......................................................................429 First Bank SBA ..........................................................................................327 First Funding ..............................................................................................226 First Guaranty Mortgage Corporation ........................................................523 Flagstar Bank ..................................................................................112 & 110 Focus IT ....................................................................................................524 Franklin American Mortgage ......................................................................216 Freedom Mortgage ..................................................................618, 620 & 622 Freddie Mac ..............................................................................................808 Himark Loans ............................................................................................221 Home Point Financial..................................................................................602 Homes.com ................................................................................................510

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NUMERICAL LISTING Booth # Company Name 102 ..................................................................Angel Oak Mortgage Solutions 104 ..................................................................................New Leaf Wholesale 106 ........................................................................................................Acopia 108 ............................................................................Premier Processing LLC 110 ............................................................................................Flagstar Bank 112 ............................................................................................Flagstar Bank 116 ............................................................United Wholesale Mortgage (UWM) 124........................................Paramount Residential Mortgage Group (PRMG) 132 ..................................................................................................CardTapp 202 ............................................................................................Nations Direct 203 ..................................................................Liberty Home Equity Solutions 204....................................................................Carrington Mortgage Holdings 205......................................................................................................LoanTek 207 ............................................................................................................AAG 208 ............................................................................Mountain West Financial 209 ..................................................................................................U.S. Bank 210 ..........................................................................American Mortgage Bank 211 ............................................................................................Reverse Vision 212 ............................................................Quicken Loans Mortgage Services 213 ........................................................................................Parkside Lending 216 ......................................................................Franklin American Mortgage 217 ..........................................................................................................Calyx 219 ..........................................................................................................Calyx 221 ............................................................................................Himark Loans 222 ..................................................................................Caliber Home Loans 224 ..................................................................................Caliber Home Loans 226 ..............................................................................................First Funding 228 ..........................................................................................LoanScorecard 230 ..............................................................Endeavor America Loan Services 233 ..................................................................Mortgage Information Services

302 ..................................................................Land Home Financial Services 303 ........................................................................................................Radian 304 ....................................................................................Best Rate Referrals 305....................................................................Carrington Mortgage Holdings 308 ........................................................................................................REMN 309 ................................................................................................Fannie Mae 311................................................................................................RCN Capital 313 ............................................................................................Dart Appraisal 316 ............................................................................................LendingHome 318 ............................................................................................JMAC Lending 322......................................................................Impac Mortgage Corporation 323 ............................................................................................CMG Financial 324 ..................................................................................................CodeKase 325 ......................................................................................Velocity Mortgage 326 ..................................................FBC Mortgage Wholesale/Correspondent 327 ..........................................................................................First Bank SBA 328 ......................................................................................Silver Hill Funding 329..................................................................................................FundLoans 330 ................................................................................................BCHH Title 331 ............................................................................................Orion Lending 402 ........................................................................................Southwest Bank 403 ................................................................................Plaza Home Mortgage 404 ............................................................................................LD Wholesale 405 ........................................................................Lenders Compliance Group 416....................................................................American Financial Resources 417 ............................................................................................LendingHome 418............................................................................................................HUD 419 ............................................................................................JMAC Lending 422 ........................................................................................Stearns Lending 423 ....................................................................AmWest Funding Corporation 425 ....................................................................................................Lodasoft 427 ..................................................................................Lakeview Wholesale 429 ......................................................................Finance of America–Reverse 431 ....................................................................................Finance of America 502 ................................................................................................LendingOne 503 ..............................................................................................Comergence 504............................................................................................ACC Mortgage 505 ....................................................................Retirement Funding Solutions 508 ..........................................................................................Appraisal Links 510 ................................................................................................Homes.com 512 ..............................................................................................Act Appraisal 516..........................................................................................Motto Mortgage 517..............................................................................................MB Mortgage 518..........................................................................................Motto Mortgage 519 ....................................................................................Allianz IQ Solutions 522 ....................................................................................B of I Federal Bank 523 ........................................................First Guaranty Mortgage Corporation 524 ....................................................................................................Focus IT 525 ..............................................................................BioMetric Signature ID 602..................................................................................Home Point Financial 603 ..............................................................................Scotsman Guide Media 604 ..............................................................................................Lender Price 605 ..............................................................................................Visio Lending 606 ..............................................................................Civic Financial Services 608 ..........................................................................International Sureties Ltd. 609................................................................................................Loan Pacific 610 ......................................................................................Valuation Partners 611................................................................................................Loan Pacific 612 ................................................................................................CalSurance 613 ......................................................................................................Avantus 614 ................................................................................................NAMB Plus 616 ................................................................................................NAMB Plus 617..........................................................................................Motto Mortgage 618 ....................................................................................Freedom Mortgage 619..........................................................................................Motto Mortgage 620 ....................................................................................Freedom Mortgage 622 ....................................................................................Freedom Mortgage 623 ........................................................................................Citadel Servicing 625 ........................................................................................Appraisal Nation 701 ..................................................................Mortgage Professional America 703 ......................................................................................Cardinal Financial 705 ......................................................................................Cardinal Financial 707....................................................................................................Axis AMC 711 ..................................NAMB—The Association of Mortgage Professionals 713 ..................................NAMB—The Association of Mortgage Professionals 717............................................................................MyMortgageAuction.com 802..................................................National Mortgage Professional Magazine 804..................................................National Mortgage Professional Magazine 808 ..............................................................................................Freddie Mac 810 ........................................................................Reverse Mortgage Funding 812 ..............................................................................................Loan Simple 814 ..............................................................................................Loan Simple

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HUD............................................................................................................418 Impac Mortgage Corporation......................................................................322 JMAC Lending..................................................................................318 & 419 Lakeview Wholesale ..................................................................................427 Land Home Financial Services ..................................................................302 LD Wholesale ............................................................................................404 Lender Price ..............................................................................................604 Lenders Compliance Group ........................................................................405 LendingHome ..................................................................................316 & 417 LendingOne ................................................................................................502 Liberty Home Equity Solutions ..................................................................203 Loan Pacific ....................................................................................609 & 611 LoanScorecard ..........................................................................................228 Loan Simple ....................................................................................812 & 814 LoanTek......................................................................................................205 Lodasoft ....................................................................................................425 MB Mortgage..............................................................................................517 Mortgage Information Services ..................................................................233 Mortgage Professional America ..................................................................701 Motto Mortgage ................................................................617, 619, 516 & 518 Mountain West Financial ............................................................................208 MyMortgageAuction.com............................................................................717 NAMB—The Association of Mortgage Professionals ........................711 & 713 NAMB Plus ......................................................................................614 & 616 Nations Direct ............................................................................................202 National Mortgage Professional Magazine........................................802 & 804 International Sureties Ltd. ..........................................................................608 New Leaf Wholesale ..................................................................................104 Orion Lending ............................................................................................331 Parkside Lending ........................................................................................213 Plaza Home Mortgage ................................................................................403 Premier Processing LLC ............................................................................108 Paramount Residential Mortgage Group (PRMG)........................................124 Quicken Loans Mortgage Services ............................................................212 Radian ........................................................................................................303 RCN Capital................................................................................................311 REMN ........................................................................................................308 Retirement Funding Solutions ....................................................................505 Reverse Mortgage Funding ........................................................................810 Reverse Vision ............................................................................................211 Scotsman Guide Media ..............................................................................603 Silver Hill Funding ......................................................................................328 Southwest Bank ........................................................................................402 Stearns Lending ..............................................................................422 & 424 United Wholesale Mortgage (UWM) ............................................................116 U.S. Bank ..................................................................................................209 Valuation Partners ......................................................................................610 Velocity Mortgage ......................................................................................325 Visio Lending ..............................................................................................605

Loan Advisor Suite Helps Lenders “ACE” Originations

By Rick Grant, Special Reports Editor

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reddie Mac is harnessing the power of big data in the new features and capabilities it’s building into Loan Advisor Suite®, the firm’s suite of integrated Web-based tools for originators to leverage in managing the full mortgage lifecycle.

Introduced in July 2016, Loan Advisor Suite helps lenders achieve better operational efficiencies, improve loan quality and gain greater certainty regarding repurchase risk.

In April, Freddie Mac began offering collateral representation and warranty relief through Loan Collateral Advisor. In June, the firm released its automated collateral evaluation (ACE), through which the need for an appraisal for certain mortgages submitted through Loan Product Advisor can be waived. New capabilities also coming this year are automated borrower income and asset validation.

“Through our new automated collateral evaluation we’re reengineering the appraisal process. We’re changing the way lenders originate and speeding up the process by waiving appraisals in certain circumstances,” said Andy Higginbotham, Freddie Mac Senior Vice President SingleFamily Strategic Delivery and Operations and the mastermind behind Loan Advisor Suite. “Getting a property valuation in a timely manner and at an affordable price has been a real challenge for many lenders. We’re aggressively seeking to change that.”

According to Freddie Mac Single-Family Strategic Delivery and lender feedback, by waiving an appraisal, ACE can shave 7- 20 days off the time it takes for loans to close, which also allows for a shorter rate lock period and can save borrowers thousands of dollars over the life of the loan. ACE can also save borrowers from $300 to $700 or more on the appraisal fee.

“By combining over 40 years of historical data with advanced analytics, we can streamline the valuation process while reducing risk for both lenders and Freddie Mac,” said Higginbotham. “We still expect a significant majority of mortgage loans will continue to require traditional appraisals, but ACE will provide another option for properties that can be valued by leveraging data and models.”

Loan Advisor Suite’s anchor tool is Loan Product Advisor®, Freddie Mac’s automated underwriting system, which gives lenders a detailed view of their credit risk and loan quality via a sleek, easy-to-use interface. To take advantage of ACE and the other new capabilities, lenders need to use Loan Product Advisor.

“Right now, there’s a lot of cost and regulation in the process. Lenders want simpler processes, more certainty and confidence in the process, and an improved experience for their customers,” said Higginbotham. “An evolution is taking place and it’s exciting for us to be a part of it through our technology solutions.”

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competition in credit scoring models has the potential to improve access to sustainable and affordable credit while helping to reverse the decline in homeownership among low- and moderate-income and minority consumers. The trade groups expressed concern over recent comments by FHFA Director Mel Watt that the expansion of the government-sponsored enterprises’ credit score models would not take place until at least 2019.

“FHFA’s effort to expand the use of alternative credit scoring models is a critical component to reversing the steady decline in homeownership particularly for low- and moderate-income as well as minority consumers,” the trade groups said in a letter to Watt.

“The additional delay in implementation timeline comes after nearly three full years of internal review and assessment on part of the GSEs to see if added competition and critical updates to the credit models would increase access to homeownership. We were dismayed to hear about this significant push back of the timeline, and we would like to request a meeting with you to explore the factors contributing to the delayed implementation.”

The trade groups within the coalition are the America’s Homeowners Alliance; the Asian Real Estate Association of America; the Community Mortgage Lenders of America; the Consumer Federation of America; the Community Home Lenders Association; the Community Associations Institute; Leading Builders of America; the Mortgage Bankers Association; the National Association of Realtors; the National Association of Hispanic Real Estate Professionals; the National Association of Home Builders; the National Fair Housing Alliance; the National Urban League; the National Community Reinvestment Coalition; the Real Estate Services Providers Council Inc.; and The Realty Alliance.

originated on one- to four-unit residential properties in the second quarter, up 27 percent from a threeyear low in the first quarter but down 12 percent from one year earlier, according to new statistics released by ATTOM Data Solutions.

Furthermore, the median downpayment for single family homes and condos purchased with financing in the second quarter was $18,850, or 7.3 percent of the median price of the homes purchased. This is up from six percent in the previous quarter and up from 5.9 percent one year ago, and it is the highest level since the 7.4 percent mark that was reached in the third quarter of 2014.

ATTOM Data Solutions also reported that 22.8 percent of all purchase loan originations on single family homes in second quarter involved co-borrowers—multiple, non-married borrowers listed on the mortgage or deed of trust—up from 21.3 percent in the first quarter and up from 20.5 percent in the second quarter of 2016. Not surprisingly, the major metro areas with the highest share of co-borrowers were among the nation’s most expensive housing markets: San Jose (50.9 percent), Miami (45.2 percent), Seattle (39.1 percent), Los Angeles (31.1 percent), San Diego (29.4 percent) and Portland (28.8 percent). Memphis had the lowest share of co-borrowers in the second quarter, at 10.3 percent, followed by Mesa, Ariz. (12.5 percent), Oklahoma City (14.2 percent), Gilbert, Ariz. (14.4 percent) and Henderson, Nev. (15.1 percent).

“Homebuyers are increasingly relying on co-borrowers to help with home purchases, particularly in high-priced markets where sizable downpayments are necessary to compete,” said Daren Blomquist, Senior Vice President at ATTOM Data Solutions. “This rising trend in co-borrowing is helping to eke out increases in purchase loan originations despite affordability and supply constraints.”

FHFA: Q2 House Prices Up 1.6 Percent

Co-Borrowers Account for 23 Percent of Q2 SingleFamily Home Purchases

U.S. house prices were up by 1.6 percent during the second quarter, according to the Federal Housing Finance Agency (FHFA) SPONSORED EDITORIAL

More than two million loans were

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

Dear Mortgage Professional, NAMB National is here, or almost here, depending on when you are reading this. The year’s biggest and best event for mortgage professionals has moved to a great new venue at the Rio All-Suite Hotel and Casino in Las Vegas!

If you’re attending NAMB National, stop by the NAMB+ booth and be sure to visit our fantastic NAMB+ Endorsed Providers who are joining us at the largest and most exciting trade show NAMB has hosted in years!

Stop by the Avantus booth to learn how you can spend less for credit and build stronger, more profitable referral networks with Avantus’ exclusive StartMyApplication service. And, ask about their special offer for NAMB Members.

For cost-effective customized outsourced risk management services, compliance support, training, and more visit the Brokers Compliance Group booth, and don’t

forget to ask about special discounts available to NAMB Members.

If you’re curious about professional liability and E&O insurance, talk to Dean Milbur at the CalSurance booth and learn about their special program exclusively for NAMB Members.

Finally, if you are looking to add commercial mortgages to your product offerings, visit one of our newest NAMB+ Endorsed Providers, Silver Hill Funding, and learn how they can help you deliver smart, small-balance commercial loans in your community.

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.

Full-service mortgage credit reporting company serving the nation’s financial community. Avantus provides custom mortgage credit reports, fraud and compliance solutions, and innovative lead generation products available exclusively to Avantus customers.

Learn more at Avantus.com.

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

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.

InfoSight, Inc. offers proven and affordable cyber security, risk management, IT Infrastructure and regulatory

MortgageHippo Swift allows loan originators of all sizes to deliver a modern borrowing experience, significantly improve borrower conversions, reduce origination costs and integrate with other innovative technologies in the mortgage industry. NAMB members will receive a 25% discount. Please visit www.mortgagehippo.com/swift/.

Sarma gives you access to their extensive resources including: merged reports from the three top credit bureaus, CreditXpert tools, AVM Reports, SocialValidate, TRV Verification, Interface with over 30 LOS, Fannie and Freddie connection, Verification of employment/deposit and much more. Please visit http://www.sarma.com/quickqual/ 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

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By Jonathan Foxx

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The Difference Between AML Compliance and OFAC Compliance Question We know that you were among the first to provide anti-money laundering tests, which is required by statute. So, we think you would know the answer to our question. A banking examiner told us that our anti-money laundering (AML) program needs more procedures for Office of Foreign Assets Control (OFAC) compliance. What is the difference between AML compliance and OFAC compliance?

Answer We were the first to offer AML tests for non-banks and bank mortgage divisions. If you haven’t done the AML test, you must do it! This is a statutorily mandated requirement.

This is a good question about AML and OFAC, as it highlights an important component of the AML program itself. Anti-Money Laundering (AML) compliance, often referred to as “AML compliance,” focuses on detecting and deterring money laundering and terrorist abuses in the financial system. AML programs are mandated for certain financial institutions by law under the Bank Secrecy Act (BSA). In fact, it is also suggested for other organizations under the Federal Sentencing Guidelines of the U. S. Sentencing Commission.

Failure to comply with BSA requirements may result in civil monetary penalties and exposure to criminal liability. Violations of AML caused by non-compliance, as well as not implementing terrorist financing laws, can result in civil and criminal penalties, imprisonment, and asset forfeiture.

Office of Foreign Assets Control (OFAC) compliance, commonly referred to as “OFAC compliance,” is derived from rules set forth by OFAC, which is part of the U.S. Department of the Treasury. Its purpose is to administer and enforce economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to national security, foreign policy or the economy of the United States.

Under national emergency powers and specific legislation, OFAC can impose controls on transactions and freeze assets subject to the jurisdiction of the United States. OFAC administers programs against targeted foreign countries and regimes, terrorists, international narcotics traffickers,

entities involved in proliferation of weapons of mass destruction, and, in effect, other threats to national security, foreign policy or the U.S economy.

OFAC prepares and maintains a unique list, called the Specially Designated Nationals list, which is a compilation of names of persons, entities, and countries that are restricted or prohibited from transacting or dealing with U.S. persons. Failure to comply with OFAC’s restrictions or prohibitions can result in substantial civil penalties and potential fines.

Unlike BSA mandates, which requires an AML compliance program, OFAC does not require an organization to maintain an OFAC compliance program. However, OFAC has indicated that should a violation of law occur, the presence

of a program could be a substantial mitigating factor in determining the nature and amount, if any, of a penalty.

Consequently, federal financial institution regulators have determined that failure to maintain an OFAC compliance program is considered an unsafe and unsound banking practice.

Although BSA and OFAC requirements are distinct, the requirements are viewed as supporting the common policy goal of national security.

Therefore, financial institutions that are subject to the BSA’s AML compliance program requirement are expected to treat OFAC compliance as related, especially with respect to the need to collect and analyze certain customer information.

Ask a question or request compliance support at Compliance@LendersComplianceGroup.com.

Jonathan Foxx, Ph.D., MBA, is the Managing Director of Lenders Compliance Group, the first and only full-service, mortgage risk management firm in the United States, specializing exclusively in outsourced mortgage compliance and offering a suite of services in residential mortgage banking for banks and non-banks. Information contained in this article is not intended to be and is not a source of legal advice. If you would like to contribute a question, please submit it to Compliance@LendersComplianceGroup.com.

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Can You Achieve Career Mastery Online?

By Shirleen Von Hoffmann

hen online learning first began, it was all the rage, but in reality, though convenient, it can be pretty lonely and boring. Online courses were not interactive, you just read and took quizzes. But now with teleconference, video and interactive exchange capability, online learning has changed a great deal in the past few years.

After coaching and training hundreds of real estate salespeople and loan officers, I have tried different methods of delivery with many personality types and discovered some interesting nuances to online learning. Which makes answering the question, “Can you achieve career mastery online?” more complicated than just one answer.

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The success recipe

3. Know your student Another aspect I have learned about successful learning is knowing who my student is. What makes up their personality and traits? I think it’s up to the mentors and educators to know the student they are teaching, how they learn and apply the best teaching methods, in order for the most effective learning to take place. Knowing the preferences of how each individual best learns will vary from person to person.

Doing upfront profiling of your students will tell you what you need to know.

I educate real estate sales professionals. My students have a high ratio of attention deficit in their continued on page 40

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1. Learning from a real master I love this new course I am taking called, “Master Class.” This is a paid online course and you get access to a series of classes on different topics. The learning is amazing and exciting because they bring real celebrities who are masters of their craft to their online school. They shoot 10-12 short videos on different topics of the trade at about 15-20 minutes in length, and you get a printable handout with tips for each session. The masters share their secrets and success tips. You can watch the videos at your leisure and they are from some of the best celebrities in the business. The masters are famous musicians, chefs, authors and screenwriters, dancers, actors and movie producers. It’s exclusive learning I have never experienced before, and I think it’s brilliant. Some of the hobbies and things I am passionate about are music, writing and cooking. Through this online course, I feel as though I am in a classroom with a superstar speaking to me. It’s learning as I have never imagined before. Through video, it feels as though you are having a conversation with them. Can you imagine getting the opportunity to take a singing class with Christina Aguilera or Reba McIntyre, where they teach you vocal tips, breathing exercises and microphone usage? In another class, you can get dance and performance tips from Usher? Well thanks to online video learning, you can not only imagine it, you can buy it! I am here to say, it’s pretty amazing and a game-changer for learning.

So, the point of this story is, the first important step is to learn from a real master or mentor who has

2. Student or sham?

The journey to learning your craft, whether online or not, should be a part of your natural progression in your career. What do you need next? What is your next step? When you are ready for it, you will seek it out and be passionate about that next step because you need it to be great! In order for learning to be effective, you need a good student who is driven, engaged, hungry and willing to do what it takes to get to the next phase. They dream of success and will do what it takes to get it.

But not everyone is a meant for mastery and there are those always looking for the shortcuts in life. People who take shortcuts are usually the ones who bog systems down, because in reality, they think they know what they are doing, but really don’t. They took shortcuts. I have had students enroll in my class and since it’s online, had their assistants take the course and take their quizzes.

They wanted the glory, but didn’t take the proper steps to achieve it. You can’t shortcut the journey to your career or you are just shortcutting yourself. I don’t want a surgeon who took a shortcut and neither do you. For those who want a certification or designation, for ego purposes and shortcut the journey, you will never achieve mastery. If you want the notoriety of having the designation, then do the work and obtain the expertise behind the designation.

The students who make the journey of getting designations and certifications as a learning and growing experience are the real apprentices of mastery. They take their careers seriously, want to get to the next level and be the best!

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There are different steps that need to be in place in order for successful learning to take place.

walked in the same shoes as yourself and had reached stardom. It’s key to the student being engaged and excited about learning from the mentor and learning their secrets to success, instead of learning from a book or online course.

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any of us have a perception of what fraud is.

We know names such as Enron or Bernie Madoff, where hundreds of millions of dollars were skimmed, stolen or embezzled representing fraud. But those examples are not the only types of fraud committed. Fraud is not just major news and multimillion dollar crimes. Fraud does not have to be profitable or successful to be a crime. I met plenty of unsuccessful, broke, white-collar convicts while serving out my prison sentence.

How did I wind up in prison?

Well, I didn’t start out with a scheme or a plan, but I definitely got involved.

In 1994, I had a career as a loan officer. I was approached by a group of investors who were buying and selling homes. Over the next several months, I worked on loans for their buyers and sensed the documents provided by these

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buyers were not on the up-and-up.

I never acted on my suspicions. I didn’t ask, and they didn’t tell.

It did not take me long to decide that I didn’t want to do business with them anymore.

I stopped accepting any new loan applications. Before I completely cut all ties with them, there was one last transaction that sealed my fate. I bought a house, put it on the market at a higher price, but couldn’t find a qualified buyer. I called the investors for help. They found a buyer for my house. We netted around $20,000 from the sale and split it, and we all went our separate ways.

At the end of 1998, the FBI arrested me outside of a restaurant and charged me with conspiracy to commit mail fraud, wire fraud and money laundering. These charges were in connection with my involvement in the mortgage fraud scheme perpetrated by the investors, who I worked with four years earlier.

My suspicions about the buyers

proved to be true. They were straw buyers who defaulted on the loans I closed resulting in more than $200,000 in losses for the lender. I fought the charges, but I eventually plead guilty. I received a 21-month sentence, which started Nov. 4, 1999.

I’m often asked why I kept working with these guys for all those months. Some people say it was greed, but I honestly don’t think so. I was making plenty of money. It was quite a while ago, but I think I worked with them because the difficult loans proved to be a challenge, and I liked them.

The head of the scam had befriended me and I didn’t want to let him down.

I have learned some valuable lessons from my journey and have summarized a few of them below.

Hopefully they will help you avoid taking the path I walked on. Or, you can take the following Action Steps and you too can change your career and your life forever … for the worse.

1. Subscribe to ‘business as usual’ attitudes I know your mother told you one white lie could lead to another, then another and another. Before you know it, you’re in way over your head. Have you ever cut a corner by disregarding a policy or procedure at work? For some, refusing to cut corners can seem exceedingly difficult when they are trying to keep their job or retain clients, but policies and procedures are in place to protect their company. Cut a corner once and it becomes easier and easier to keep cutting.

Action: Don’t listen to your mother.

Go with the flow and cut corners.

2. Don’t just turn a blind eye— help out Studies have revealed that a significant amount of reported fraud losses involve collaboration, collusion or knowledge from industry insiders.

In other words, someone on the inside. The person keeping the books or adding up the numbers suspects, knows or is outright helping facilitate

How to Commit Fraud Five simple steps to an unhappier life

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By Jerome Mayne

4. Justify your unethical actions My involvement in the scam

5. If a money tree falls in the forest and no one is around, you can take all the money This might seem like a no-brainer, but you’d be surprised. Being a felon, I’ve rubbed elbows with some unsavory sorts. I’d say at least half of them felt they committed fraud justified by need, and felt it was justified. They knew of a loophole or weakness in the system, but never exploited it because it would be wrong, unethical and perhaps even criminal. For weeks, months or

years, they never took advantage of the loophole. Then one day, BAM! The sick aunt broke a hip, had no health insurance and the temptation was too great. There was an opportunity and a need, and no one would ever know.

Action: The money is yours as long as nobody is looking.

Some may feel the above steps can be placed in categories ranging from big to small, and severe to not so severe. Know this: Every corner that is cut, trims a little piece from the soul; and it is almost impossible to get that back. There is no gray area, there is only a thin line. You are either on one side of it or the other.

My sentence ended in March 2001. But my loss of selfconfidence, self-esteem and the stigma associated with being a felon did not. Once a person with fearless entrepreneurial characteristics, I was now scared to apply for a job as a copier salesman.

I eventually found some confidence and self-respect, or they found me and I’ve been able to contribute in a useful way to society. My career and passion today are speaking at conferences and conventions about the consequences of fraud and the importance of doing the right thing, helping professionals make the right decisions when the right decisions aren’t easy.

Since 2001, Jerome Mayne has been an international public speaker on fraud and ethics in the finance industry. He is the author of the book, Diary of a White Collar Criminal, available on Amazon, and is co-author of the real estate continuing education program titled, Mortgage Fraud and Predatory Lending–What Every Agent Should Know (Kaplan).

Jerome may be reached by phone at (612) 919-3007, e-mail Jerome@JeromeMayne.com or visit JeromeMayne.com.

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3. Trust everyone This step addresses the balance of the significant amount of reported fraud losses I refer to in Step 2.

Confidants, or con-men for short, are good at their craft. They construct a façade, a persona of sincerity and honesty that for the most part will not be transparent.

They will become your friend. They don’t care about you, your company or your family. They will use every resource available to get you to do what they want and assist them in perpetrating a scam. They actually can beat you at your own game.

Action: Trust everyone.

included several justifications. I told myself, since the kingpin did not explicitly tell me that the documents I received were fake, it was not my job to act on my suspicions and verify them. After all, I didn’t create any fake documents. I even told myself that if the documents were fakes, it probably wasn’t going to hurt anyone or create more risk.

Action: Lie to yourself until you feel okay.

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the scheme. If you’re a licensed professional, it is unlikely that you are being completely duped by someone at your own game.

Action: Make a conscious decision to ignore your gut feeling and assume your instinct is telling you to do the wrong thing, first.

I Don’t Know Who to Call and I Don’t Know What to Say!

By Steve Rennie

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fter 20-plus years of making cold calls and building relationships in our industry, it would be easy to take for granted that relationships start with a name and a phone number. That’s it … a name and a number. LinkedIn has changed that to some extent, as it’s become easier to find and “connect,” but when they know who you are, it becomes challenging to develop a relationship through conversation. Most people I seek out get a call before they see me on LinkedIn. I go into every call realizing it could result in a relationship and someone I am completely confident that I will create value for. My intent is to establish rapport, build trust and prove that there is value in a relationship. When those three things happen, I am able to create the proper foundation for future conversations. As unpredictable as our industry is, it never hurts to have more relationships, right?

With the above in mind, it’s clear to me that most managers are uncomfortable making cold calls because they don’t know who to call and/or what to say. If it was easy, everyone would do it, so good thing it isn’t. A big emotion around this is confidence, or rather, a lack of confidence because of the fear of rejection and the time and goodwill it takes to establish a relationship.

Here are three topics to ponder: l

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Who to call: When the amount of relationships you have do not produce the growth you want, you have to build new ones. Big data is making it easy to identify individuals that are actually producing loans (contact me for more on this specifically). Names and numbers are everywhere.

Overcome objections: Let’s face it … the people you want to connect with didn’t wake up that morning expecting to be recruited. They will answer their phone and give you an objection. There are only a handful of possible objections. When you know what they are and how to overcome them it helps begin a relationship.

What to say: Can you confidently articulate your USP (Unique Selling Proposition) and Value Proposition around your Six Core Components (Business Model, Leadership, Culture, Operations, Technology & Geography)? The goal is to create a clear way to communicate these topics at a high level with recruits about you and your organization.

Simply put, calling new people is less daunting when you know how to find them, can overcome common objections, and have your “story” dialed in. If you are growing beyond your goals you probably have mastered these skills already. If not, it’s time to kick it into and execute a plan that helps you get there!

Steve Rennie is Chief Sales Officer with Model Match Inc., a technology platform and business plan used internally by sales leaders and executives at banks and mortgage companies to grow and retain production organically. He may be reached by e-mail at Steve.Rennie@ModelMatch.com.

SPONSORED EDITORIAL

achieve career mastery online personalities and not much time to spare in their day. I have discovered that it’s hard to keep salespeople engaged for very long, unless they are involved.

Here are some aspects that apply to my students, that I include in my coaching of salespeople: l Mastermind Sessions with peers and sometimes special guests l A live, experienced and successful mentor or coach l Student involvement and an open exchange of ideas l A 30-minute interactive online session that they can calendar l Topics necessary to advance their career and that they are passionate about l Video, pictures and conversational learning l Takeaway accountability and lists so you know the learning and execution that took place l Role play when appropriate to install new skills This is what works best for my students, but I only discovered this through profiling them and my experience in trying many different methods of learning with them.

4. Grouping students I know from experience and being a top producer myself, that I get better classroom results from students who are on similar levels of growth. Top producers like being around other top producers … that’s what challenges them and what they learn from—their peer group.

Just like in school, teens don’t really like hanging out with the elementary students. The same rule applies in coaching.

People have different stages of their careers. I compare it to riding a bike where you had different levels of learning to ride, and needed different levels of support at each one of those levels. There are the beginners who need the basics and a lot of direction and support. The intermediate level individual who is taking off and in growth mode, but needed help

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figuring out teams and handling new business. The advanced individual who has been around awhile, done well and knows a lot, but needs new challenges and precision in their processes. Then there are the masters who need to be engaged and operate on an advanced level, thriving on challenging themselves to perfection, as they follow their road to mastery.

When you put a master in an intermediate course, they will be bored to tears. Put a beginner in a master class and they will be lost and have missed many very vital steps along the way.

I like to do live coaching whenever possible and sort through my students and group, likeminded individuals at the same stages of their careers, whenever possible. You can achieve this in an online course by having an application that profiles the student upfront and then directs them through to your different student levels, accordingly. In my courses, I profile expertise, volume, unit average closings, goals and accomplishments.

The best recipe for learning 1. Have a student who is honest, driven and eager to achieve mastery.

2. Know who your student is and build your course around their personality and learning style.

3. Build courses with topics that the student needs and has passion about.

4. Group your students by the stage of their career.

5. Have successful mentorship and/or coaches for the students to learn from.

There are all kinds of online courses available. But I have found that if you follow the things I have mentioned in this article, you will have a recipe for successful learning to take place. By knowing your student, interacting with them, grouping by peers, utilizing mentorship, accountability and honesty, you can have mastery take place online!

Shirleen Von Hoffmann is Coaching Executive Officer of Home Builders Edge. She may be reached by phone at (866) 600-EDGE or e-mail Shirleen@HomeBuildersEdge.com.

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The Entitled Borrower

By Andy W. Harris, CRMS

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42 ’ve had the pleasure of meeting some great people in my career and thankful for the clients that I have developed. Our industry allows us to meet people from all backgrounds with a variety of diverse financial habits and career fields. This data collected over decades and analyzed truly shows us the American consumer and how they succeed or fail with their debts and liabilities, mainly relating to habits versus their income in many cases. I feel it’s a privilege for the knowledge we can gain by having this confidential information to allow perspective in our council to others and even to ourselves.

The other diversity we see unrelated to this data is in personalities. Many of us are faced with (and thankfully only happens a few times a year) the ‘entitled’ borrower. This is the borrower that no matter what you do, they will never be happy. If you closed a loan in two days at two percent, not even a thank you. This borrower feels the world owes them a loan and they seemed shocked that they have to provide any information in order to obtain it. Asking for a pay stub produces the same response as if you’d just

I

slapped their sleeping baby. It’s nearly impossible to communicate with them as what they produce verbally as a response to requests literally has no relation.

The entitled borrower simply has no respect for the mortgage process. The 2008 financial crisis should have removed this thinking from everyone’s brain, yet there are a select few that refuse to listen. You can explain the agency requirements, analytical details as to why all consumers must follow, and the results on buy-backs or investor issues if lenders don’t have a simple piece of paper in file. These are not difficult items to produce when borrowing hundreds of thousands of dollars. They refuse to comply and fight all the way to closing creating avoidable issues and delays on their own loan.

We have some great things going on with technology that is and will continue to streamline the process for the consumer. It’s very exciting and it’s only going to get better, but regardless, NO consumer is entitled to a loan without verifying ability-to-repay.

Many people have great credit.

Many people pay their bills. This doesn’t mean a few of the many are exempt from the rules all

others must follow. This is the trouble with some in our society and I believe it must be tied to the way their parents raised them. I cannot see any other reason why the view is so significantly skewed other than insecurities from a prior negative experience unrelated to a new one.

One borrower in which I believe, statistically, will never fall in this category or be related to these issues is our veterans. They certainly are entitled to a loan (benefit) under the terms, the Veterans Administration set and I believe we must do everything we can for them to secure the best terms and experience possible. In addition, I believe they have more discipline and respect to meet the basic needs of the program, as well when compared the general consumers (civilians). This is just my opinion from what I see, but thankful that we can serve our veterans as well as all consumers.

I would love to hear stories on this topic. I know you have them, we all do. Some are funny and others are quite shocking or concerning, but what have you seen from clients or potential clients that refuse to respect the process and actually believe they are entitled to whatever they want? Is it a generational issue?

More with Millennials that other prior generations? Is it technology and commoditizing our industry? Is it information they receive online or in the media making them believe truly that nothing is required to obtain a significantly large loan?

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 for “OrigiNation.”

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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heard street on the

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

New American Funding Expands in the Midwest and Earns Prestigious Inc. 5000 Distinction

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New American Funding has expanded its Midwest territory to include a new location in St. Louis, Mo., that will function as a retail branch and regional operations center. Since 2014, the region has grown from generating $42 million dollars in loan volume to a projected $400 million dollars by the end of this year. Senior Regional Vice President, Hamid Hamrah will oversee the new St. Louis branch.

“When people see our welcoming environment, they want to join our team; so we’re extremely excited for our incredible growth and this prime new location,” said Hamrah.

“Build the right culture and the right people will come.”

Hamrah has established a regional team of more than 100 mortgage professionals and plans to continue expanding by growing operations, increasing local sales, and forming strategic partnerships with real estate agents to bring educational resources and workshops to the community.

“We’re more than a mortgage company, we’re a team, and a family with a shared passion of helping people as they achieve their dream of homeownership,” said Krista Russo, Area Operations Manager. “Not to mention, our technology is among the most advanced in the industry so we’re thrilled about leveraging our innovative mobile resources to continue solidifying relationships with our real estate partners.”

For the fifth time, Inc. 5000 has

named New American Funding to its list of Fastest-Growing Private Companies in America, ranking the national mortgage lender 1,664th in the nation for 2017. The magazine complied the list according to revenue growth from 2013 to 2016, during which time, New American Funding’s revenue increased by 235 percent.

New American Funding was also recognized on Inc. 5000’s Honor Roll, an elite group of companies who’ve made the fastest-growing list five times. This distinct milestone is an accomplishment that less than one-tenth of Inc. 5000 honorees achieve.

“It’s extremely rewarding to have Inc. 5000 repeatedly identify New American Funding for its rapid growth,” said New American Chief Executive Officer Rick Arvielo. “We’re thrilled by this achievement and are driven to continue working hard to stretch our limits each day. Our commitment is to remain innovative.”

New American Funding is owned by husband-and-wife duo, Rick and Patty Arvielo, who’ve expanded the company to include nearly 130 nationwide branches with a servicing portfolio of $20 billion.

Employee Survey Reveals Castle & Cooke Mortgage as a Great Place to Work

Castle & Cooke Mortgage has been certified as a great

workplace by the independent analysts at Great Place to Work.

The company earned this distinction based on extensive ratings provided by employees in confidential surveys.

“I couldn’t be more pleased with our certification as a great place to work,” said Castle & Cooke Mortgage Chief Operating Officer and President Adam Thorpe. “We strive to create an environment that fosters positivity, growth and integrity.

To know that our employees feel fulfilled, valued and respected is the greatest compliment we could receive.”

According to the study, 94 percent of Castle & Cooke Mortgage employees say that the company is a great workplace.

Employees also feel the company has “great bosses” (95 percent of respondents), “great communication” (95 percent), “great atmosphere” (97 percent), and they take “great pride” (98 percent) in working for Castle & Cooke Mortgage.

“We applaud Castle & Cooke Mortgage for seeking certification and releasing its employees’ feedback,” said Kim Peters, Executive Vice President of Great Place to Work’s certification program. “These ratings measure its capacity to earn its own employees’ trust and create a great workplace—critical metrics that anyone considering working for or doing business with Castle & Cooke Mortgage should take into account as an indicator of high performance.”

Castle & Cooke Mortgage employees completed 245

surveys, resulting in a 90 percent confidence level and a margin of error of ± 3.38 percent.

Ellie Mae Buys Velocify for $128M

Ellie Mae has announced it has signed a definitive agreement to acquire Velocify, a sales acceleration platform, for $128 million in cash. The transaction is expected to close in the fourth quarter.

“As part of our comprehensive strategy to deliver the first true digital mortgage to the industry, we are helping lenders to originate more loans, reduce costs, and complete the entire mortgage process faster,” said Jonathan Corr, President and CEO of Ellie Mae. “The combination of Velocify’s solution with our Encompass CRM and Encompass Consumer Connect solutions will accelerate our delivery of the most robust digital mortgage solution in the market.”

Ellie Mae did not announce whether the Velocify management will remain, or if the company will exist as a separate subsidiary or be fully absorbed into the Pleasanton, Calif.-based Ellie Mae’s operations.

AFR Wholesale Celebrates 10-Year Anniversary, Announces Amazon Partnership

In June of 2007, American Financial Resources (AFR) opened the doors to a dedicated full-service Mortgage Wholesale Division that has evolved over the past decade to enable their

Nationstar Mortgage has changed its name to Mr. Cooper.

“Mr. Cooper is more than just a new brand name,” said the company on its Web site. “It represents a better way of doing business. We aim to be the friendliest, most trusted advocate for every customer, whether we’re helping you with a loan, refinancing, or simply servicing your existing loan.”

In case anyone is wondering if the Mr. Cooper name is a tribute to locomotive inventor, the “Welcome to My Nightmare” singer or any other notable with

that surname, the Coppell, Texas-based company insisted that the new moniker was meant to reinforce the notion of a service-focused organization working to help its customer base.

“We’re keeping things simple, focusing on solutions and putting customers first,” the company added. “Yes, we’ve made improvements, but we’re not done. We’re on a journey to better, and we won’t stop until we achieve our single-minded goal: To keep the dream of home ownership alive for every customer.”

New America Financial Earns Prestigious Inc. 5000 Distinction

New America Financial Corporation has been named to the Inc. 5000 List of America’s Fastest-Growing Companies for 2017, an exclusive ranking of the nation’s fastest-growing private companies that achieved remarkable and sustained threeyear growth and expansion.

“We are honored to be ranked continued on page 50

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NationalMortgageProfessional.com

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

After 23 years in business,

n National Mortgage Professional Magazine n SEPTEMBER 2017

client’s business by providing a technologically advanced portfolio of products to support the correspondent and broker communities. AFR Wholesale is proud to celebrate its 10-year anniversary having grown into one of the largest service providers in the country, with a nationwide network of more than 1,000 brokers and correspondents.

Much of AFR Wholesale’s advancement over the past decade has been predicated on its continually evolving, technology-enhanced products delivering Brokered and Correspondent lending solutions, with a variety of enhancements to simplify the mortgage process.

“Technology has transformed the lives of everyday Americans in recent years and, now more than ever, they require tools that simplify and streamline seemingly complex tasks such as applying for a mortgage,” said Laura Brandao, Chief Operating Officer of AFR. “Our constant development of innovative tools underscores not only American Financial Resource’s pioneering mindset, but our commitment to ensuring an optimal experience for both brokers and lenders.”

Continually pushing the technology envelope in the mortgage world, AFR Wholesale is proud to announce a revolutionary partnership with Amazon to integrate its lending origination portal, AFR Loan Center, with Amazon’s intelligent personal digital assistant, Alexa.

AskAFR through Alexa provides AFR brokers improved customer service by offering instant and continual access to information about their current account pipeline. It will help streamline day-to-day business operations with voice-activated capabilities including pipeline status, integrated communications, scheduling, and much more.

The newest technology tool in the AFR Wholesale support arsenal brings the ease of speech to how partners obtain information. Simply saying, “Alexa, Ask AFR Loan Center” will generate the answers needed to grow business and be competitive in the industry.

MONDAY

Master the Markets with Barry Habib

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

Brought to you by Airs every Monday at 7 a.m.

For more information on Planet Home Lending, please visit www.PHLTPO.com

MONDAY

Centurion Roundtable Interviews

Learn the secrets of success from this elite group of high volume originators.

Brought to you by Airs every Monday at 11 a.m.

For more information on PRMG, visit prmg.net/wholesale

TUESDAY

SEPTEMBER 2017 n National Mortgage Professional Magazine n

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The 60 Second Originator

Over 80% of home buyers and refinance consumers start their searches online. If you don’t possess the knowledge and practices required to convert loans from the internet then you need the 60 Second Originator to grow your origination.

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TUESDAY

The Mortgage Godfather The

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WEDNESDAY Top Originator Secrets with Brian Sacks Closing more, making more and still enjoying life!

Brought to you by Airs every Wednesday at 11 a.m.

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If you have a product or service for mortgag for these videos. For more information about Network custom video productions please send an or call Beverly Bolnick, VP-Sales & Ma and she'll tell you how you ca

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THURSDAY

Alternative Lending: Top Originator Strategies Strategies from top originators using alternative lending.

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FRIDAY

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THURSDAY

Making

You make it said making money was simple, but I don’t ever remember saying it was easy.

Most of the readers of my column are loan officers … people who attempt to earn a living by being paid a commission when a loan they originate closes. Simple.

For those of you who are in positions of the “C” Suite, this is the second part of a paper I wrote saying that what your sales force is doing is all wrong. I request you take heed.

The challenge of the simple vs. easy part comes from two main sources, both of which I have written or spoken about for the past 50-60 years. It comes up almost every day in one conversation or another.

And the part I don’t understand, cannot comprehend and completely causes me constant feelings of failure is that almost all of you know what you should do to get the job done and earn the money you say you want to earn, yet you just won’t do those simple activities.

I recently had an extensive conversation with a loan officer who had seen my video about how simple it is to become well-known to the people you want to have refer clients to you. I had another conversation with another loan officer who is relatively new to the business, having taken a position about six months ago.

Both of these conversations come off my tongue because of the constancy of the issues they both raised.

Here is issue number one: Training.

When I became a loan officer, God was guiding me to find the best mortgage expert and manager that has ever lived. Bill Schor, who I have written about many times came from a farming family in central New Jersey. Somehow, he was blessed with a brain so disciplined and mathematically bent, he was almost born to be the person he became.

When he gave me the opportunity, he demanded I

I

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The

Mortgage

Godfather

ng Money Is Simple!

e it hard … almost all of you sales managers are supposed to do. This is how you get the most out of your people. And in today’s world, it doesn’t happen.

Why, because managers are so wrapped up in fixing their files, both the ones they produce and the ones their salespeople produce.

You should have a serious question: If sales managers are so busy with their fingers in files fixing issues, how can they possibly do what Bill did.

Here is the simple answer: l Have a specialist who does the accountability work.

Require the written reports and have a system that requires the salespeople be followed up. l Put people as managers who are not required to produce, just manage the salespeople and actually help the salespeople make an impact in their market.

l Pick out a small number of referral sources that actually do business. Get out in the field and see them on a regular basis every week. Set up a schedule to see the ones who do business because the myth that referral sources that do business aren’t in the office anymore is just that … a myth. Professional real estate people, attorneys, insurance brokers, financial advisors go to their offices. Maybe not all the time, but they do go and if they are really successful, they have teams who work with them. Those people might be out of the office more, but the professionals have a desk in an office. Make a schedule to see them and keep to a schedule.

Look, this is just the start of the simplicity of sales in any business. It doesn’t matter what you sell.

I have for you the following immediate call to action: 1. Ask me for any of the helpful papers I’ve written, especially “What Realtors Like and Don’t Like” and/or “Questions on Coaching.”

2. Sign up for my weekly videos at http://mortgagenewsnetwork.com/ mortgage-godfather 3. Be sure your company and salespeople are being kept up to date with compliance issues. For more information check www.lenderscompliancegroup.com

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@MortgageGodfather.com.

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n National Mortgage Professional Magazine n SEPTEMBER 2017

Under all circumstances, require the salespeople to see only certain referral sources who can actually refer clients, not waste time seeing people who don’t do business Issue number two: What should salespeople do to originate business?

I’ll try to make this even simpler than anything I’ve ever written before.

l Stop talking about rates, points, programs, service and how great your company is in comparison to the others.

Those are the things everyone talks about. Don’t be like everyone else. l Send your referral sources and your past clients a weekly email.

NationalMortgageProfessional.com

follow in his path and refused to pay me my draw if I didn’t.

Understand that I had already been in the business for a few years, most of which had been spent working in what we refer to as the operations side of the business. I was an underwriter of sorts, making decisions as to which bank we would sell our closed loans to. Then, as I progressed, I became in charge of fixing all of the post-closing issues, anywhere from errors of title or improperly signed document s from the closing.

My first year working for Bill was as his assistant where he taught me all that came between the origination and the closing. Because of certain circumstances, President Nixon froze wages and prices and that precluded my ability to get a raise, one that even Bill thought, was well-deserved. But there was nothing that could be done other than to put me on commission and try my hand at sales. Believe me, it was not what I wanted to do. I thought salespeople were lazy playboys who spent most of their days at bars or the racetrack. I was right by the way because the guys at our company, all experienced and flush in comparison to most other businesspeople.

I do not digress here. What I wrote above refers to the fact that I was managed. Assiduously managed. My time was accounted for every hour of every day. How you may ask?

Simple, I had to write down where I was going every day from Monday through Friday. I had to write down who I saw and what we spoke about. I was told to visit, and I know you won’t believe this, but without any exaggeration, it was my obligation to visit 20 real estate offices a day, five days a week. I had to write and submit a report on Monday who I was going to visit that week and on what day.

This is not even slightly untrue.

Not only that, but Bill called offices I was to visit or had visited and asked if I had been there or could they please tell me to call him when I arrived. This is sales management. This is what

BY RALPH LOVUOLO SR.

The End of Interest Rate Selling

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ince the market crashed, we’ve been stuck in a world of rate reduction refinances. For a long time, no one had equity and consumers were afraid of the term “Adjustable-Rate Mortgage.”

So the only refinancing to be done is lowering interest rates. Now everything is different, home prices are steadily rising, and we have had another strong year-over-year jump in home prices. What are we going to do when rates go back up?

The time has come to change our sales approach from only having rates reduction conversations back to the method of finding out a borrower’s situation and then presenting them with as many options as possible. They will choose the one that best suits their needs. This will increase your close ratios and bring you more loans and more income each month.

The highest close ratios come from the mortgage professionals who do not have rate conversations with their borrowers, but rather, the conversations about the borrower’s financial needs and then move to their mortgage, and eventually, to what they quality for. Home values are raising allowing borrowers to qualify for lower monthly payments, cash-out refinance, etc. Borrowers have options besides rate reduction now, and it’s important to talk to them about all the products they may qualify for. Some people would rather have a short-term loan and have no problem with higher payments to get it. If you were trying to pay off all your debt so you can retire, buy a second home or put your kids through college, the interest rate doesn’t matter as much because you are paying off the loan early anyway.

When you know what is motivating someone to make a major financial change, it’s a lot easier to explain the benefits in terms they will understand.

TagQuest customer spotlight Customer name: Zack M. State they reside in: Nevada What campaign they did: Direct mail What volume they do per month or per drop or per order: Approximately 5,000 pieces every two weeks Some kind of measurable result: Closed loans, response rates, number of applications taken (the more details here the better).

Response rate: 0.85 percent, app about 30 percent of the calls, close 2.5 loans per week from the mail Highlights of the campaign that appeal to your client: “Ease of the process. Everything from ordering to taking calls takes little effort on my part,” said Zach. “Even the free tracking helps ease the time tracking down information. It has been that way for two years now.”

Highlights of the campaign that they feel would appeal to other mortgage lenders: “One stop shop with proven results and would recommend to anyone,” said Zach.

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

continued from page 45

on the Inc. 5000 list for 2017. Our success these past years is directly attributed to our commitment as an organization to fostering meaningful relationships with our valued clients and referral partners, in addition to our enhanced focus on operational efficiencies that support our expansion goals.

This recognition is a true testament to our sustained growth, our dynamic culture and our greatest strength of all, our people,” said Michael Rappaport, President and Chief Executive Officer of New America Financial.

Since its formation in 2006, New America Financial Corporation has expanded its presence into 17 states and the District of Columbia.

Motto Mortgage Enters the Maryland Market

Motto Mortgage, a member of the RE/MAX Holdings Inc. family of brands, has announced that RE/MAX Town Center broker/owners Joe Sabelhaus and Mark Strosnider have opened the first Motto Mortgage franchise in Potomac, Md. “Co-owning a Motto Mortgage franchise allows me to build upon my many years in the mortgage industry,” said Sabelhaus, a former Loan Officer. “Mark and I have a very successful real estate franchise, with two locations, and we were looking to better serve our clients. Our Motto Mortgage 360 loan originators give homebuyers more loan options that fit their individual needs and provide exceptional customer service.

We’re truly excited to bring the brand to Maryland.”

With Motto Mortgage, experienced mortgage professionals can benefit from tools, resources and proximity to a local real estate brokerage.

Motto Mortgage loan originators have access to competitive loan options from various sources and are not bound to the products of one specific lender.

“Joe and Mark launched RE/MAX Town Center in 2009 and quickly built it to be one of the premier real estate offices in Maryland,” said Motto Franchising President Ward Morrison. “Joe brings nearly 11 years of mortgage industry experience to his new Motto

Mortgage franchise, complemented by 10 years in real estate. Mark has been in the real estate industry for more than 23 years. Our entire team is thrilled to have Motto Mortgage 360 in our network.”

Resitrader’s Trading Platform Adopted by The Mortgage Collaborative

Resitrader Inc. has announced that it will be providing the Resitrader platform as a private label product to members of The Mortgage Collaborative (TMC).

The platform, called “TMCDirect,” will provide TMC members with full access to Resitrader’s trading platform, as well as special incentives and benefits for TMC members. With more than $1 billion of loans transacted monthly on the Resitrader platform, TMC members will have the opportunity to connect with other TMC members, as well as with a vibrant marketplace of 70-plus Resitrader customers for pricing, buying and selling whole loans.

“Through TMCDirect, we’ll enable TMC member companies to buy and sell whole loans far more efficiently than previously possible,” said John Ardy, Chief Executive Officer of Resitrader.

“Our flexibility in connecting with any hedge advisory service, LOS (loan origination system), pricing engine or internal systems allows our users to connect with each other without limiting their technology options. We are the intersection for buyers, sellers and their important technology partners to create easy, efficient and profitable transactions.”

Starkey Mortgage Launches Reverse Mortgage Division

Starkey Mortgage has announced the launch of its Reverse Mortgage Division, to be led by Ken Witte, Branch Manager and Reverse Mortgage Specialist.

“We believe that offering a full range of loan products is best for our clients so we can assist everyone from the first-time borrower to the last-time

borrower,” said Witte. “A consumer should be able to consider all loan options by working with a lender such as Starkey Mortgage that offers both forward and reverse mortgage options.”

Headquartered in Plano, Texas, Starkey Mortgage opened its doors in March 2000 and offers reverse mortgages, home purchase, refinance and renovation loans with offices throughout Alabama, Colorado, Florida, Georgia, South Carolina, Oklahoma, and Texas.

The Mortgage Collaborative Adds Notarize to Its Preferred Partner Network

country,” said Pat Kinsel, Founder and Chief Executive Officer for Notarize. “While digitizing the mortgage closing can transform a lender’s operations and offers borrowers a fundamentally better experience, the transition for lenders requires new tools and new techniques. Beyond our closing platform, Notarize specializes in helping lenders transition their operations to unlock the benefits of a truly paperless, online closing, The Mortgage Collaborative has taken a leading role in understanding and advancing new technologies

and we look forward to partnering together to move the industry into the digital age.”

TowneBank Mortgage Completes Integration With LodeStar Software Solutions

TowneBank Mortgage has launched an integration with LodeStar Software Solutions to accurately quote closing costs continued on page 60

Why choose MBS Highway?

BARRY HABIB— THE ORIGINATOR OF THE MARKET ADVISORY SERVICE Daily guidance and insights from Mortgage Market expert Barry Habib. He closed over $2 Billion in production as a Loan Originator, called the bottom of the Housing Market and currently provides sales and market training to thousands of Loan Originators across the country.

STATE OF THE ART, USER FRIENDLY WEBSITE We've taken great pride in building a website that uses new technology, and enhances the user experience. No matter where you are on our site, you'll always have market data in sight. Never miss a lock alert with our real time market news and alert system.

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n National Mortgage Professional Magazine n SEPTEMBER 2017

Always stay in touch with the market when on the go with our Mobile Web App. It's fast and easy to use. Whether you have an iPhone, Android, Blackberry, Windows Phone, you'll always have access to MBS Highway. No downloads, no annoying updates, just visit m.mbshighway.com in your phone or tablet's browser.

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The Mortgage Collaborative has announced a new partnership with Notarize, adding them to the preferred partner network.

Notarize for Mortgage is the first digital platform to enable an entirely legal and compliant online mortgage closing process.

Notarize is closing mortgages online in partnership with major lenders and title underwriters/agencies–enabling borrowers to close online whenever and wherever they choose. Verified by Fannie Mae and Freddie Mac, the Notarize for Mortgage platform digitizes the entire closing process with technology to securely coordinate lenders, title companies and borrowers online.

Notarize for Mortgage’s online closing platform offers borrowers a fundamentally better experience, reduces costs for lenders, accelerates the sale of loans into the secondary market and gives every constituent greater trust and visibility into the validity of mortgage documents. “eMortgages have been top of mind for Lender Members of The Mortgage Collaborative for a few years now, as evidenced by the constant interest we receive on networking calls and breakout sessions at our member conferences when we cover the subject,” said Rich Swerbinsky, Executive Vice President of National Sales and Strategic Alliances for The Mortgage Collaborative. “The addition of Notarize provides our Lender Members a digitized eMortgage process that is entirely online, paperless and scalable, and will help move the needle on the broad adoption of eMortgage that has largely been stalled due

to a need for a digital, online closing experience.”

The Mortgage Collaborative network is more than 110 lenders strong, with an aggregate annual origination volume of over $190 billion. The network caters to lenders of all sizes, with a strong mix of independent mortgage brokers and community banks and depositories.

“On the heels of launching Notarize for Mortgage, the first platform to enable a completely online mortgage closing process, we are thrilled to partner with The Mortgage Collaborative to scale online closings across the

52

How to Get and Keep Momentum to Raise Your Sales Numbers

By Bubba Mills

T

l Understand where you are. Before you can hit the road toward your goals, you need to assess where you are today and decide specifically what you need to get where you want to be. Maybe you’re lacking some key skills in technology, for example. Perhaps a class in search engine optimization would help. In particular, think about your strengths and weaknesses and learn how to use the former and improve the latter. l Create an action plan. After each goal, write steps that need to be taken to move you closer to the goals. Remember the acronym “SMART.” Make each element of your plan Specific, Measurable, Achievable, Relevant and Time-Specific. l Develop the right mindset. You can stack goals and action plans to the moon, but if you don’t believe you can achieve them, it’s all a waste of time. Take time every day to ensure you keep your thinking positive. Your mind can be your worst enemy or your best friend. The key to remember is–the choice is yours. You choose every day how you’ll approach your life.

Bubba Mills is Chief Executive Officer and Owner of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 9578353 or visit CorcoranCoaching.com.

“Success comes from … persisting.

What simple action could you take today to produce a new momentum toward success in your life?”

—Tony Robbins

53

n National Mortgage Professional Magazine n SEPTEMBER 2017

l Know what you want. It may sound overly simple, but I cannot tell you how many

people I meet who fail to get clear on what it is they truly want. Get specific. How many mortgages do you want to lend annually?

How much money do you want to make?

How many hours do you want to work? How many vacations do you want to take? The more specific, the better.

NationalMortgageProfessional.com

oday’s topic is momentum. It’s one you don’t hear a lot about but I think it is–without any doubt–one of the most important determinants in whether or not mortgage professionals are successful.

Not to get too technical, but physicists define momentum as the quantity of motion.

You’ve heard the old saying, “When it rains, it pours.” Those who know me know I prefer something like, “When the sun shines, it sparkles.” I’m a positive guy!

Another analogy: Every year I drive my RV cross country. When I go through Flagstaff, Ariz., I meet some massive hills. My RV isn’t like a sports car–when I see a big hill, I have to get strategic so I can make it over. In short, I have to use momentum–my quality of motion.

The minute I take my foot off the gas, my momentum vanishes.

And I’m sure you’ve heard athletes talk about “being on a roll” after a winning streak.

They also talk about their confidence–a nice by-product of momentum.

Anyway, my point is momentum is real and it’s also relevant in the world of sales. I bet you can think back to a month where you just tore it up–lending left and right–you may even know your personal best numbers–that month you funded 50 deals!

Of course your thought after an achievement like that is, “Gee, it’d be so great if I could do that every month–keep that momentum going.”

Well, I have some good news for you: there are ways to do exactly that!

Here are some practical steps you can start taking today to get momentum, keep it and use it to raise your sales numbers:

NMP’s

54

“A lot of companies grow because they bring on a ton of people–we’ve walked away from a lot more people than is typical in this business.”

—Paul Rozo, CEO and President, PRMG

or this month’s Legends of Lending profile, the spotlight shines on Paramount Residential Mortgage Group Inc. (PRMG). In this interview, four members of the PRMG leadership team offer their insight on the state of the industry and the strategies that keep PRMG at the apex of the mortgage industry. The company’s Chief Executive Officer and President Paul Rozo, and Chief Operating Officer Robert Holliday, were joined in this interview by Chief Lending Officer Kevin Peranio, and Chief Strategy and Capital Markets Officer Gary Malis.

F

What makes PRMG different from its competitors?

Kevin Peranio: We are a 16-yearold company that believes in building long-lasting relationships.

We put people first–we’re not a tech company where we don’t value people.

At the same time, we are marrying an old school philosophy with a tech core component, and we’re privately owned. By not being a bank or a hedge fund, PRMG has a different mentality– one that people want to work for.

Robert Holliday: Our company is fueled by the involvement of the ownership. We are actively involved. We have an open-door policy, and we listen.

Gary Malis: PRMG has a vision for growth, but it’s not driven by an IPO or sale or some specific volume target. Instead, it’s about creating a healthy and successful environment that helps people grow and find a career path through retirement. There is opportunity for everyone beyond just income opportunity. Whether

“Our company is fueled by the involvement of the ownership. We are actively involved. We have an open-door policy, and we listen.”

—Robert Holliday, COO, PRMG

they are looking for more income, involvement or influence in shaping our platform, or being actively involved in a political or philanthropic endeavor, we create roles that foster difference areas of emphasis.

Paul Rozo: As originators ourselves, and being in the trenches early on, we clearly understood the requirements, and more importantly, what truly needed to be accomplished in order to achieve that success.

What does PRMG look for in potential new team members?

Rozo: Stability. Obviously, we are not looking for jumpers. We also want the right cultural fit and mindset. A lot of companies grow because they bring on a ton of people–we’ve walked away from a lot more people than is typical in this business.

Peranio: We’re adding about 100 employees every month. And we have a great retention level–there is no reason to leave if you’re doing well. Regional managers are retained at an 80 to 90 percent level. We haven’t lost a single branch manager producing $3 million-plus per month in over three years.

Malis: If you enjoy prideful hard work, are eager to learn and share and have an open mind, you will have the opportunity to do almost anything. PRMG looks for people who want to be part of a family and want to elevate themselves–and are ready to be challenged.

The housing market has turned into an environment where home prices are constantly rising while inventory is shrinking. Is this scenario sustainable?

Malis: It is definitely a challenge, but we also have to remember that

L

Legends of Lending

By Phil Hall

55

“By not being a bank or a hedge fund, PRMG has a different mentality–one that people want to work for.”

—Kevin Peranio, Chief Lending Officer, PRMG

income does not have to rise as fast as housing appreciation, and we all want housing to be a quality investment. However, it depends on what specific market you are looking at. Some are more challenging than others if they truly heat up too fast and leave new homebuyers on the sidelines.

Peranio: In short term, yes, for a couple of years. But you’ve got to realize that in a free market, a normal ebb and flow will occur. I don’t think I can call when it will change, but it will.

How do you see the current state of the mortgage industry?

Rozo: I see the state of the mortgage industry driving to lost cost origination, automation and technology. I see the industry leveraging technology more efficiently and effectively.

Holliday: We’re in for a pause. But

I don’t see a bubble or a crash.

The quality of loans is so high– everything is fully dissected now– and the loans being made in last several years are of the highest quality.

How has PRMG been able to keep on top of the many regulatory changes that have taken place in recent years?

Malis: You deal with regulatory change by having competent inside counsel—not just a good attorney, but someone who understands the mortgage space.

You also have outside counsel who has a good relationship with the CFPB and people in Washington, D.C. You also need to have a good relationship with a lobbyist, either from your local banking association or the Mortgage Bankers Association to help shape intelligent legislation.

“PRMG looks for people who want to be part of a family and want to elevate themselves–and are ready to be challenged.”

—Gary Malis, Chief Strategy and Capital Markets Officer, PRMG

Also, it is important to have a tech partner who understands compliance and is able to make sure your systems are manageable and will allow you to implement what you have on paper into an action plan. Most importantly, you cannot always get caught up in the perfect interpretation of a law as much as understanding the intention and spirit of putting the consumer first.

Rozo: PRMG made a massive commitment to our compliance department. We concentrated on our internal processes, nearly quadrupling our resources and efforts with a high focus on human resources, as well as financial

resources while creating a budget specifically dedicated for the company’s compliance needs.

If you could describe PRMG in one word, what would that be?

Peranio: “Rising.” We’ve been increasing volume, improving our technology, getting progressively better at marketing and pricing strategies, adding good talent– every aspect of our company is improving and that has helped us to rise over the last couple of years.

Holliday: “Flexible.” “Nimble.”

“Adaptable.” Okay, that’s three words. We’re large, but we’re not too large.

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

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The Long & Short The Business of Short Sales

ForeclosureCreditFix.com Now Available

BY PAM MARRON

oreclosureCreditFix.com is now open to assist clients with a past short sale or modification to check if foreclosure credit exists prior to new home purchase. Though the consumer pays for this service upfront, loan originators can provide a credit towards the cost at the closing of a new mortgage. Loan originators who agree to provide this credit will be promoted on the Foreclosure Credit Fix Network map at ForeclosureCreditFix.com/Network along with lenders, real estate agents and credit reporting agencies who want to assist these clients.

What do nearly three million past short-sellers and more than five million homeowners who have had a modification have in common? All of them may be affected by a foreclosure code that continues to be applied to mortgage credit of a past short sale or modification and results in a new conventional mortgage denial.

HUD-approved counseling agencies have launched an effort to check for a foreclosure code on mortgage credit of past short sellers and those who have had a modification and get it corrected before the consumer attempts to get a new mortgage. Though this service is for the affected consumer, it is also the resource for loan originators, lenders, Realtors and credit reporting agencies to send clients to for help. Thanks to the National Foundation for Credit Counseling (NFCC.org) and member HUD-

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approved counseling agency Navicore Solutions, affected consumers can get this problem checked out and resolved before they purchase a home again.

Clients can call (866) 702-4557 or e-mail Housing@NavicoreSolutions.org.

When the problem is corrected and these clients are “mortgage ready,” they can be referred to loan originators, lenders and Realtors.

The foreclosure code issue affects past short sellers and those with a modification who apply for a new conventional mortgage. There are three reasons why this problem is not being caught and dealt with by lenders ahead of a purchase: 1. Affected consumers have met the four-year wait timeframe required after a short sale or the two-year wait timeframe required after a modification.

2. The foreclosure code is not visible on a tri-merged credit report.

3. Because of the two previous reasons, there is no urgency of lenders to run these loans through the Fannie Mae and Freddie Mac automated underwriting systems upfront.

The problem is often found during a live contract when the loan is run through both the Fannie Mae and Freddie Mac automated underwriting systems. When it is found, the consumer has four options: 1. Re-run the loan through the Fannie Mae Desktop underwriting system using Fannie Mae’s workaround.

Freddie Mac does not currently have a workaround.

2. Change the loan to an FHA mortgage which allows for a manual underwrite.

3. Change the loan to a portfolio conventional mortgage which is usually a higher interest rate with greater costs and more downpayment required.

4. Lose the contract.

The solution can be a two-step process. The first step determines if the foreclosure code exists and could include utilizing the Fannie Mae workaround. The second step is to make sure that a more recent “date reported” of the affected account does not exist. If the automated system reads that the short sale or modification occurred within the minimum wait timeframe, this can be a reason for a denial. The “date reported” problem often occurs when a “dispute” is put on the affected account. Because the account is re-opened, the more recent “date reported” is recorded and cannot be changed.

Other pre-purchase housing and credit counseling is also available from HUD approved counselors about buying a home, renting,

default, foreclosure avoidance, credit issues and reverse mortgages. Some services are free and others are on a sliding scale basis. To find counselors in your area, go to HUD Approved Housing Counseling Agencies at HUD.gov/Offices/hsg/sfh/hcc/hcs. cfm, click on your state and check under “Counseling Services” and for agencies in your area.

For more in-depth credit counseling and debt management (NOT to be confused with credit repair), go to the National Foundation for Credit Counseling (NFCC.org) agency locator at NFCC.org/Locator. All member agencies have HUD-approved housing counselors with additional specialized training to deal with credit issues.

As we turn the corner on the housing crisis, lingering problems still need our attention. Thinking of those who were affected by Hurricane Harvey, the mortgage and real estate industries have an opportunity to form new, strong alliances with housing counseling agencies for specialized services that we are not equipped or trained to deal with.

Stay tuned …

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

By Gavin T. Ales

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n July 7, 2017, the CFPB issued the longawaited amendments to the TILA-RESPA Integrated Disclosure Rule (TRID Rule). While the final rule amending the TRID Rule (Amendment) was issued on the CFPB’s Web site on July 7, it was not published in the Federal Register until Aug. 11, 2017. The publication of the rule in the Federal Register is important for determining the effective date of the rule as explained below.

Of course, there are many changes in the Amendment’s 560 pages that lenders should review and be prepared to implement. However, it was also interesting that the CFPB chose not to finalize some of the changes it had proposed back in July of 2016. Especially noteworthy, the CFPB did not finalize its proposed rule to modify what the industry has called the “Black Hole,” opting instead to issue a new proposal to modify that provision of the TRID Rule.

Comments are due on the new Black Hole Proposal by Oct. 10, 2017.

The effective date of the Amendment is also more complicated than originally proposed. During the comment period, the CFPB received many comments taking varied positions on when the Amendment should become effective (i.e., comments requesting both long and short implementation periods or also flexibility in implementing the amendments).

It appears the CFPB tried to strike a balance from those competing requests. The Amendment is effective Oct. 10, 2017, or 60 days following its publication in the Federal Register, which as noted above was on Aug. 11. However, the rule also provides that compliance with the Amendment’s provisions is not mandatory until Oct. 1, 2018. This two-part approach to the effective date seemingly allows the industry the flexibility it sought in the comments submitted to the CFPB by allowing lenders to phase in the various provisions in a way that “best comports with their business models.”

Unfortunately, while the Amendment does address many areas of the TRID Rule, including the forms themselves and requirements on lenders in making the disclosures, the Amendment did not address some of the areas that have caused some of the biggest concerns in the industry. For example, the CFPB did not make any policy changes via the Amendment for liability for TRID Rule violations, expanding the ability to cure violations, or disclosure of amounts for title insurance. It is not known at this time if the CFPB may address those issues in a later rulemaking or if the TRID Rule will stand as it is for those items.

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

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throughout the nation. This integration enables all TowneBank employees to obtain quotes instantly through Ellie Mae’s Encompass all-in-one mortgage management solution.

“This integration is a true time saver for our entire operations team” said James Miller, Chief Operating Officer at TowneBank Mortgage. “As we continue to grow both the size and scope of our mortgage operations, it is critical to leverage innovative industry partners like LodeStar to drive efficiency and accuracy.”

TowneBank 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. TowneBank can quote their existing network of settlement service providers’ fees in the system or utilize LodeStar’s national settlement agent affiliate, Res/Title.

“LodeStar is delighted to partner with a major industry player like TowneBank Mortgage,” said Jim Paolino, CEO and Founder of LodeStar. “Our secure, seamless integration with Encompass simplifies the manual fee-quoting process for the Loan Estimate and Closing Disclosure forms, so companies of all sizes can process mortgage loans faster and focus on growing their businesses.”

resources and infrastructure to maintain the excellence in client support that we are known for within the mortgage industry.”

Much of MCT’s ongoing growth is the result of significantly expanding the breadth of capital markets services, adding MSR services, business intelligence, product and pricing, a centralized outsourced lock desk and its secondary marketing software, MCTlive! The company has also developed key integrations with leading loan origination system (LOS) providers. MCTlive! has been instrumental in the company achieving unprecedented growth over the last few years, with lenders of every size now using the solution to efficiently manage various capital markets functions for secondary marketing departments.

Headquartered in downtown San Diego with its facility overlooking Petco Park, MCT has expanded its office space multiple times over the years to accommodate new employees and expand operations. The company now has almost 100 employees with offices in based in Philadelphia, Dallas, San Francisco, Los Angeles and Charlotte. MCT has been listed on the Inc. 5000, Inc. 500 and the SDBJ Fastest Growing Private Companies list many times, and has been honored with numerous other awards and accolades.

Mortgage Professionals to Watch

Mortgage Capital Trading Recognized by San Diego Business Journal

Mortgage Capital Trading (MCT) has announced that it has again landed on the San Diego Business Journal’s (SDBJ) 2017 Top 100 Fastest-Growing Private Companies list. MCT ranked number 72 on this year’s list, with a with a three-year growth rate of 81.88 percent from 2014-2016.

“We are very pleased to have again been ranked one of San Diego’s fastest-growing private companies,” said Curtis Richins, President of MCT. “MCT has been expanding operations and growing revenue at a consistent rate over the past 10 years.

We’ve been adding the necessary

DECIANTIS

CFPB Publishes Final Amendments to TRID Rule

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l United Wholesale Mortgage (UWM) has announced the promotion of Sarah DeCiantis to Chief Marketing Officer. DeCiantis had served as Vice President of Marketing since joining the company in early 2014. l Castle & Cooke Mortgage LLC has added three new members to its executive team: Tomilynn Clark as Director of Underwriting; Brooke Joy as Director of Marketing; and Samantha continued on page 90

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01-The packed Trade Show floor of the Omni Orlando Resort at ChampionsGate 02-The 2017-18 FAMP Board took office at the 2017 Annual Conference, including Vice President Darlene Kowalczyk, Statewide President Kimber White, Secretary Linda Knowlton, Treasurer Gino Moro and Immediate Past President Jon Turla 03-Allen Middleman (far right) of Freedom Mortgage chat with attendees during the FAMP Annual Trade Show 04-FAMP President Kimber White, NAMB 2017-2018 President John G. Stevens and Jhonny Bravo get into the “FAMP Through the Decades” spirit at the 2017 Annual Conference 05-NAMB Vice President and FAMP Convention Committee Valerie Saunders welcomes attendees to the FAMP Annual Conference 06-Chuck Koppel from Citadel (right) details his company’s product offerings during the FAMP Annual Trade Show 07-FAMP Jacksonville Chapter Vice President Allen Touchton and Chapter President Eddie Hilliard as The Blues Brothers 08-Stayin’ Alive, the Bee Gees Tribute Band, entertains attendees at the FAMP Annual Gala 09-Jhonny Bravo, NAMB Past President John Councilman and FAMP President Kimber White 10-Brad Smith (far right) and the team of Home Point Financial on the trade show floor of the Omni Orlando Resort at ChampionsGate 11-FAMP Sun Coast Chapter President Sherry Bitner was honored during the FAMP 70s Gala 12-Alan Cicchetti of Brokers Compliance Group with Jhonny Bravo during the FAMP 70s Gala 13-Current FAMP President Kimber White with Immediate Past President Jon Turla 14-Members of the FAMP Broward Chapter were honored during the FAMP 70s Gala 15-FAMP President Kimber White (left) and Jhonny Bravo (right) with Allen Beydoun of United Wholesale Mortgage (center) 16-Jhonny Bravo, FAMP Past President David Kane and current FAMP President Kimber White pause for a photo 17-Linda Knowlton, Kimber White and Carol Martin were honored for their service to FAMP during the 70s Gala 18-FAMP Treasurer Gino Moro with his wife at the 70s Gala 19-FAMP President Kimber White, FAMP Palm Beaches Chapter President Jeffrey Parry and Jhonny Bravo get into the “FAMP Through the Decades” theme at the association’s Annual Conference 20-NAMB VP and FAMP Convention Committee Chair Valerie Saunders with Lisa O’Connor

Non-QM Loan Popularity Spurs Evolution of Correspondent Channel By Sean M. Marr

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lthough the non-QM segment of the mortgage industry is still in its infancy, steady growth and positive performance have led to an evolution from wholesale to correspondent lending demand. As interest rates rise and home sales slow, large mortgage companies may need to grow non-QM volume or risk losing both production and customers. To that end, pioneers of the nonQM wholesale space are now expanding into the correspondent arena, offering mainstream originators the opportunity to partner with best-in-class investors.

Although today’s non-QM loans–with their traditional manual underwriting–have enabled thousands of reliable homebuyers to obtain loans, large numbers of mortgage professionals remain skeptical or unaware of their growing importance to the industry ecosystem. Spurred by AAA ratings of the senior tranches of recent non-QM securitizations, more correspondents are entering this arena. The solid performance of these loan pools and the proliferation of correspondents may convince industry leaders that their path to long term success is narrow if they rely only on agency lending.

Because non-QM wholesale and correspondent lending is relatively new, let me summarize its history before discussing how and why nonQM correspondent lending will be increasingly vital to the residential mortgage marketplace. The 2014 “Ability-to-Repay and Qualified Mortgage Rule” issued by the Consumer Financial Protection Bureau (CFPB) set stringent guidelines for which borrowers could qualify for agency loans. These rules shut out as many as 30 million otherwise creditworthy Americans, who may be self-employed, living off nonincome assets or had a damaging financial incident.

To meet that need, leading edge investors began marketing, underwriting, funding and servicing non-QM loans. Assuming total risk, these financial industry innovators developed thorough processes and procedures including manual underwriting and ability to repay standards. In addition, these loans require significant down payments and full documentation of income and assets. These alternative loans have performed so well that warehouse lenders are increasingly accepting them, in turn convincing a wider range of originators to develop their correspondent abilities.

The non-QM correspondent appetite is evolving in many ways. Some brokers are converting to non-delegated correspondents. Mortgage bankers are expanding to offer correspondent products. Internally, larger aggregators have begun to adopt formal strategies for non QM product approvals. In most of these situations, those who are transitioning to non-delegated underwriting must rely on an outside entity, a cooperative partner, that can provide advice and expertise, or even a full range of technologies, services and personnel.

This marketplace evolution is important to everyone in the industry. Demand for non-QM loans has typically exceeded supply, because most originators have preferred to focus on agency lending. That is already changing. It was expected that originators would need new markets as the refinance market slowed. Surprisingly in 2017’s third quarter, there has been a downturn in home sales. Whether this is a trend or just a short-term variance, non-QM lending—with its largely untapped audience—may offer mortgage professionals their best opportunity for growth.

Though the upside is great, those entering the correspondent arena need to know that non-QM loans are different. To successfully manage risk, lenders need to utilize best practices, systems and processes that have been perfected by leading non-QM organizations. Potential correspondents should partner with a company whose track record in the space is proven.

When aligning with an investor to become a non-QM correspondent, carefully review the company’s track record in the industry. This partnership is essential to establishing your competence in handling details of non-QM underwriting, compliance and operations. A top-notch correspondent investor will provide these and other services.

Your correspondent partner must be more than a deep-pocketed investor who can enable you to move loans to the secondary market.

As the non-QM industry is still young, your decision to become a correspondent seller probably comes after much discussion and consideration. You have learned that you will need a savvy, trustworthy correspondent affiliate to advise you on building strong, sustainable non-QM lines of business.

Here are some of the questions you should ask the investors pursuing your correspondent portfolio: l Does my current warehouse provider allow for non-QM loans on my line? l What is your onboarding or orientation program? l What kind of support do you have available to our executives, loan officers and operations staff as we ramp up and learn to be nonQM experts? l What kind of compliance technology do you employ and why? l What is the strategy and performance record of your operations function? l How will you handle loan-level underwriting exceptions?

A large percentage of non-QM loans may require exceptions, but there are just a few experts in field. You must work with proven professionals. continued on page 66

a special focus on THE WHOLESALE & CORRESPONDENT MARKETS a special focus on TH

non-qm loan popularity spurs evolution of correspondent channel

You will want to select a correspondent investor who will offer flexibility in the quantity and value of loans. Those of us who have pioneered these non-QM correspondent offerings know that few lenders can yet deliver multi-million portfolios each month. You will want to do business with an investor who is willing to invest in only a few loans at a time as you build your non-QM business. You want to do business with a company that will invest in both your loan production expertise and your potential to master the non-QM space over the long run.

Anytime a totally new product is offered in a mature, highly structured industry, widespread adoption is going to be gradual.

In the case of non-QM loans, which were launched just three years ago, two factors caused brokers and lending institutions to remain unaware or uninterested for some time. For

one, most originators did not need them to fill their pipelines because low interest rates resulted in an abundance of prime borrowers seeking to buy or refinance. Also, non-QM loans wrongly carried the stigma of the subprime loans largely responsible for causing the Great Recession.

This year, wariness and reluctance by mortgage executives has given way to serious interest, if not loud enthusiasm. This past July, Angel Oak Capital Advisors completed its largest ever securitization of non-QM residential mortgages, $210 million, backed by loans sourced through Angel Oak Mortgage Solutions and our sister companies. This further legitimized the credibility of nonQM industry leaders to perform respectably for lenders who want to pursue correspondent programs.

Until now, growth of the nonQM correspondent sphere has been steady but measured.

However, originators who wait to offer these products may have quite a bit to lose. We know that there are millions of non-agency borrowers who are underserved by the mortgage industry, many of whom can prove their ability to repay through traditional (and eventually automated)

continued from page 64

underwriting. We also know that interest rates are rising and home sales are slowing. The latter may result from too few alternative products being available. Are you positive that you can maintain profits and retain your best originators by relying only on agency lending?

If not, the best alternative is to become a correspondent lender aligned with a top-rated investor.

Sean M. Marr is Director of Correspondent Lending for Angel Oak Mortgage Solutions. Prior to Angel Oak, Sean has served the mortgage industry for 25 years in various sales and sales leadership roles, with organizations such as HomeSide Lending and Citibank. He may be reached by e-mail at Sean.Marr@AngelOakMS.com or call (904) 521-4511.

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a special focus on THE WHOLESALE & CORRESPONDENT MARKETS a special focus on TH

Building Strong Communities Through Third-Party Origination By David Stephan t wasn’t long ago that wholesale mortgage lending was all but declared dead. As the market started to melt down after 2007 and we entered the depths of the Great Recession, large prime and subprime wholesale lenders were shutting down in droves.

Mortgage broker shops, once ubiquitous across the country, left a trail of vacant office space behind them in their haste to exit the market. Even the term “wholesale” began to carry a stigma and is now commonly referred to as Third-Party Originations (TPO).

Fast-forward a tumultuous 10 years. Post-TRID jitters seem to be subsiding and lenders, both bank and non-bank, continue to figure out how to lend profitably in the current regulatory environment. For banks, the answer appears to be “less is more” and for non-banks, “more is more.” Various sources cite that non-bank originators now account for more mortgage lending volume than their financial institution counterparts.

This is a complete reversal in just a few years from the dominance of banks and credit unions, and a turn of events that few could have anticipated.

The decrease of bank mortgage lending includes many of the largest banks who, according to the Mortgage Bankers Association (MBA), tallied up approximately $138.5 billion in mortgage-related fines and settlements between 2010 and 2014. It is not hard to understand why numbers like these have had a chilling effect on banks’ willingness to persevere in the residential lending marketplace. Add to that the additional regulatory expense of Dodd-Frank and TRID and the picture becomes even clearer. The MBA reports that the cost to originate a mortgage hit a new peak in the 1st quarter of 2017–a whopping $8,887 per loan.

While the added expense and regulatory risk clearly has been difficult for large banks to manage, smaller community institutions have been hit the

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hardest, with some choosing to exit the market altogether. While technology and increasingly sophisticated loan origination systems have helped manage these risks, the price tags and administration of these systems can be incredibly burdensome, contributing to a lack of profitability. Think about how

industry and we have been expanding our TPO program over the past three years.

With a TPO program, local financial institutions can easily outsource the labor intensive functions of disclosures, processing, underwriting, and funding, all the while maintaining the face-to-face customer

“With a TPO program, local financial institutions can easily outsource the labor intensive functions of disclosures, processing, underwriting, and funding, all the while maintaining the face-to-face customer contact and service levels that are the hallmark of the community institution.” long a loan needs to be on the books to recoup the aforementioned $8,887 in either interest or servicing income.

So what does all this mean for the independent mortgage banker looking to grow their business? Clearly, there is a need for small and mid-sized institutions to consider alternate ways to deliver a profitable mortgage lending experience to their customers. My firm recognized the need for local banks and credit unions to partner with an expert in the

contact and service levels that are the hallmark of the community institution. The Loan Officer is still the trusted advisor and maintains the relationship throughout the process. Even more importantly, the lender still has access to the mortgage application itself which is a goldmine of cross sale opportunity, resulting in referrals for other financial services.

One of the main benefits to the originating lender is

compliance relief. Although the TPO client originates the loan, disclosures, processing, underwriting, and funding are all managed by the TPO provider.

As mentioned earlier, some of the post-TRID jitters seem to be going away, but costs continue to skyrocket with nearly all the increases due to compliance.

For a smaller bank or credit union, it can be nearly impossible to originate mortgages profitably. A robust third-party origination program can quickly and easily remove the compliance cost factor and return the lender back to more profitable operation.

Not only can a TPO program be a source of compliance and regulatory relief, it can also be a source of additional revenue for the originating institution.

Looking back again to 2007, the word “Millennial” was likely a word that most of us had never heard, but we surely know what it means now. According to the Ellie Mae Millennial Tracker, 40 percent of Millennial loan volume went to FHA in the second half of 2016. If an institution wants to be recognized by their Realtor and other business partners in the community as a lender that can offer more options that meet today’s homebuyers’ needs, programs like FHA, VA and the USDA Rural Development are a necessity. A TPO relationship gives access to these choices without the time and investment in agency approvals, processing training, and ongoing compliance. Marketing campaigns touting newly available programs can also be a boon for loan originators looking to refresh Realtor relationships. For example, as part of my company’s offering, we leverage our marketing expertise to adapt existing retail collateral pieces for the client to use in their external sales efforts. Perhaps most importantly, the borrower is not forced to patronize a competing institution to obtain a mortgage, which would put a hard-earned deposit relationship in jeopardy.

This leads to the question of how the TPO client actually gets paid. Under RESPA, a bank or credit union must perform a defined set of services along with taking the application.

These services, such as assisting the applicant in

n THE WHOLESALE & CORRESPONDENT MARKETS a special focus on THE WHOLESALE &

understanding and clearing credit problems, or attending the closing, are included in the contract between the third party originator and the service provider. The amount of compensation cannot vary from loan to loan or program to program due to the potential steering issues that different compensation structures might cause. This means the payment to the TPO client must be the same whether you are funding an FHA, USDA Rural Development or conventional loan. The originator should not be induced to steer a borrower into a particular program based on compensation.

While you may have a finely tuned retail origination engine, there are many factors to consider if you are a mortgage banker looking to enter the TPO market. Chiefly among these is whether or not your loan origination system can support the TPO business channel. How easy is it for the third party originator to get an application into your system? Does your

system provide a borrowerfacing online application component? How well does your system communicate with the TPO client? You will also need staff dedicated to boarding loans and managing the transaction throughout the process. Those processes and procedures also need to be documented and developed into a customer-facing manual.

On the business development side, the sales cycle can be long so expect that channel growth will be a marathon and not a sprint.

Many institutions can be resistant to the concept of TPO and may not be willing to relinquish any facet of the mortgage process, even if it is clear that doing so would decrease expenses and increase profitability. Finally, as a service provider and not just an origination company, you will be dealing with regulated financial institutions and all the compliance that comes with it.

Vendor due diligence has become a major source of

concern among the FDIC, OCC, and NCUA. Financial institutions must perform an initial vendor assessment to determine and document the soundness of the vendor and their internal procedures, so expect to provide things like a business continuity plan, privacy controls, regulatory audit results, and even financials.

We like to describe the TPO relationship at Inlanta Mortgage as not just a win-win, but as a win-win-win. For the TPO client,

that means less expense, additional fee income, and littleto-no compliance worries. For the service provider, it can provide a new channel of business to complement an existing retail operation. Finally, for the borrower, it means access to more options and expanded home buying opportunities, which ultimately benefits the community as a whole. It is truly a mutually beneficial relationship uniting all three parties in the common goal of homeownership.

David Stephan is TPO Manager for Inlanta Mortgage. He comes to Inlanta with nearly 30 years of industry experience in the retail, credit, technology and TPO sectors of the mortgage industry. Prior to joining Inlanta, Dave was Senior Account Manager with a major LOS provider, where he was responsible for strategic planning with the companyâ&#x20AC;&#x2122;s major accounts.

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Wholesale Changes on the Horizon

By Laura Brandao

believe there is a major shift in progress in the wholesale and correspondent marketplace. Ten years ago, there was not a lot of liquidity in this space, and the number of correspondent lenders was small. However, a change in the loan officer compensation rules, mandating origination disclosure, created a shift where you started seeing mortgage brokers move over to what we call “minicorrespondents” or “non-delegated correspondents.”

By 2010, the needle was fully moving in that new direction. Loan officers started closing their mortgage broker shops, moving to become correspondent lenders. As we emerged from the stock market crash, there were more warehouse lenders in the market, eager to open warehouse lines to these mini-correspondents. The correspondent sector continued to grow and expand, as these former brokers began scooping up branches from the small broker shops.

That evolution from broker into correspondent continued all the way up until last November, around the time of the election. Several changes in the financial world evoked a new shift. As margins began to compress, the correspondent lenders began to see the refi market dry up.

The Federal Bank started to increase rates, and the entire industry responded to the belief that the economy was going to improve in the wake of the Presidential election, and a focus on tax reform.

All of a sudden, the production changed and all the refis disappeared, and these loan officers realized that maybe being at a correspondent shop was no longer the best solution.

Now, all those correspondents that had closed their broker a decade ago after the crash, are now starting up as brokers again.

So, now they are back to the wholesale side.

On the horizon, you’re going to start seeing many more of these loan officers, or branch managers, that had their own companies in the past before the crash, returning to their roots. They are leaving the correspondent world to return to

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the wholesale side as brokers. As a result, we are going to see an increase on the wholesale side and in decrease on the mini correspondent side.

Wholesale and correspondent driving the mortgage industry In the wake of this reverse of focus, how can the wholesale and correspondent Marketplace remain viable and competitive? What

aggressive and creative program development.

For example, six months ago, my company began exploring a new product, called VA Renovation.

Even though everyone, including the Veterans Administration, insisted that no such product existed, or was warranted, we persisted. Eventually, we were able to prove that while it was not very well-known, or detailed in the VA

“Millennials are very data-driven, so providing them the proper and insightful education for a better buying experience is beneficial for everyone involved in the mortgage process.”

should our strategy be to capture potential business?

I believe the answer lies in creativity and a focus on the market needs, opportunities the mega-banks, who are rapidly exiting the wholesale space, are not necessarily tuned in to, or even care about. The bank focus is driven by their bottom line, and their CRA in serving their community. They are not looking to challenge status quo. They’re not looking to say, “What else can we do?” This creates opportunities for

handbook, there is such a product.

We kept challenging because we knew in the long run it was a phenomenal program for our veterans. It was something the marketplace needed, and the marketplace needed somebody to challenge, push the envelope.

Wholesale and correspondent lenders need to continually look for that different and unique product offering to be able to supply to the market. This is something the banks are not designed to do.

Banks are there to serve their

clients, as depositories, there to provide to the community, and their CRA, their footprint, but I don’t think they’re there to challenge and listen to the market needs, and be able to think outside the box to develop niche product offerings to match marketplace needs.

Most banks were offering the cookie-cutter, standard products, where the wholesale and correspondent marketplace looks for the more challenging offerings, because if they can perfect that, and become an expert, they know they will continue to grow their market share.

Banks simply aren’t built to move quickly or respond to the marketplace. A perfect example is the biggest buyer in today’s marketplace, the Millennials. This rapidly growing segment demands programs and offerings that are steeped in technology and suited to their current needs. The banks aren’t as flexible and able to provide those products. In contrast, the wholesale and correspondent marketplace is more nimble and flexible. They are able to say, “Okay, this is where the tide is going. We’re going to continue to go in that direction and conform and evolve.” The Millennials are such a strong force in the marketplace. They are determining where the market is going. Being nimble, and able to deftly adjust and respond to the marketplace needs is certainly an advantage for the wholesale and correspondent professional.

The keys to capturing the Millennial homebuyer market There are many opportunities to capture the Millennial audience.

Certainly, technology is a huge component. Many of these Millennials only want to do things via their smartphone. They might not even know what a fax machine is, and certainly don’t want to manually sign anything.

Another key factor is education.

These Millennials, while smart and sophisticated in their technology, are inexperienced when it comes to the mortgage process. The lack of education offered by most lenders, provides an opportunity for the wholesale and correspondent sector to step in and educate this growing Millennial buyer on the products, the process, and the promise of a new home.

Millennials are very data-driven, so providing them the proper and insightful education for a better buying experience is beneficial for everyone involved in the mortgage

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process. They want to watch a YouTube video, visit a blog or vlog, research on Google. They donâ&#x20AC;&#x2122;t want you to hand them an encyclopedia, but they do want snippets of information that are insightful, educational and make the buying process easier to understand and better from an experiential standpoint. The right information can easily walk them through the process. So, you need the technology, but technology and their terms, YouTube videos, short blogs, and infographics. Itâ&#x20AC;&#x2122;s technology feeding them information under their terms.

They are eager to be educated on products that are good for them. For example, USDA one-time close construction is a 100 percent financing program, usually for more rural areas. This is a terrific program for Millennials that might want to buy a new home in a rural area with 100 percent financing at a great rate, via a governmentbacked loan, similar to FHA. But, most Millennials probably donâ&#x20AC;&#x2122;t even know about a program like this. They need to be educated. So, again, itâ&#x20AC;&#x2122;s technology and

education on their terms, and products that fit their needs.

Growth opportunities for mortgage bankers via the wholesale channel Around the time of the election last November, the industry also started to experience a dearth in the marketplace, when it comes to affordable homes. This lack of affordable inventory, that $250,000$300,000 home or property, is a sweet spot. There is such a shortage in affordable housing, coupled with a growing demand, that the Millennials are unable to find these affordable homes. A huge opportunity now exists in affordable new construction or renovation of older homes to have them updated for that Millennial buyer. This is a fantastic growth scenario for innovative and aggressive lenders that can create attractive program offerings.

Additionally, we are seeing tremendous growth in the refinance market. Home owners in that 40-60 age range are not leaving their first homes anymore. The average period of time for an owner in their home used to be five-seven years.

That is no longer the case.

Many factors are contributing to that. For one, they have jobs, and the economy has stabilized. People are not moving for jobs. Secondly, there are also a lot of remote jobs available out there. So, people donâ&#x20AC;&#x2122;t have to move to get jobs.

Also, for people that bought their homes 15 years ago, the values have increased so much that it is cost prohibitive to move. They may get far more for their original home, but it will cost far more to find a suitable replacement.

So, instead, we are seeing homeowners renovate and upgrade their existing homes. The homes that are on the market, and affordable, are the ones that usually need the most work. So, why buy another property in need of improvement, when you can simply improve your existing home. Especially without the need to move.

This trend is fueling the

renovation loan programs. There used to be a perception that this type of loan was challenging and time consuming. But the truth is, it has gotten simpler over time, and a growth in competitive products has seen this market continuing to increase.

A great time to be in the wholesale and correspondent marketplace There are more opportunities than ever in the wholesale and correspondent marketplace. Itâ&#x20AC;&#x2122;s always going to be about pushing the envelope and providing products and niche strategies that meet the demands of an ever growing and evolving loan landscape. But, the successful companies will be the ones that stay ahead, or in-step with the changes, and constantly provide new and innovative products, all while improving and simplifying their customer communication and service.

Laura Brandao is Chief Operating Officer at American Financial Resources (AFR). She is the driving force that has catapulted AFR Wholesale to the top of manufactured home, one-time close and renovation lending markets in the USA. 71

the local markets and pride themselves on friendly, responsive service. Plus, our team has an in-depth understanding of hom me loan options, including low down payment options through our Affordable Mo ortgage Program, and specialty loans like Jumbos, loans to LLCs and Trusts (approv ved by Ridgewood Savings Bank), and non-warrantable condos.

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Capturing the Millennial Homebuyer Market By John Pataky illennials do not plan on living in their parents’ basements forever, despite the popular stereotype.

While this generation has been slower to enter the housing market than their parents, Millennials are increasingly interested in taking the leap into homeownership. Of the 87 million potential homebuyers in the Millennial generation, 91 percent claim that they intend to own a home in the future.

However, when it comes to Millennials, there remains a disconnect between their dreams of homeownership and the realities of the home loan process. For many in this generation, homebuying is still seen as a daunting process. As many struggled to enter the workforce during the ‘08 financial crisis, they often have lingering concerns about their finances and the prospect of taking on additional debt. It’s not uncommon to hear statements from Millennials such as “My student debt means I shouldn’t even consider buying a home for at least a decade” or “I don’t think I could afford a downpayment, so I’ll just continue renting.”

Therefore, perhaps the most important aspect of capturing the Millennial homebuyer market is being prepared to tackle the unique considerations of this age group and showing Millennials that purchasing a home may be the right choice for them.

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Provide education As mortgage lenders, we have the potential to be a critical source of education for interested homebuyers about the unique hurdles they may face in the loan process.

According to a study by TransUnion, Millennials said their top concerns about the homebuying process included not being able to fund a downpayment (59 percent), not qualifying for a low interest rate (56 percent), and having a low

credit score (47 percent). Much of this may stem from their existing debt, whether from credit cards or student loans.

We can make it clear that there are often options available for overcoming these potential obstacles.

Oftentimes, this conversation may not occur until the client has their first meeting with a loan officer. However, it’s beneficial to proactively dispel these common misconceptions before a client even has their foot in the door. By promoting educational materials like blog posts, online articles, informative videos, etc., on securing a mortgage with common financial struggles, you may be able to encourage a Millennial buyer to pursue homeownership, while establishing credibility within your organization.

Of course, before we can educate our clients, we must educate ourselves. This may mean brushing up on recent regulations that impact the Millennial market, like Fannie Mae’s new policies announced earlier this year on the student debt payment qualification and the ability to exclude debts paid by others. A lender’s knowledge of these options may make all the difference when it comes to finding a loan agreement that works for the Millennial demographic.

Establish a digital presence Once Millennials decide to move forward with the homebuying process, the consideration then becomes, which lender to choose. With all of the potential options out there, how do you differentiate your company to appeal to younger homebuyers? It starts with having an accessible, engaged digital presence.

Whether it’s through a userfriendly Web site, active social media platforms or a responsive online customer service team, Millennials will learn as much as they can about a lender online before moving forward with the mortgage process. For example,

in a 2015 survey of Millennial consumers, 62 percent said that they’re more likely to become a loyal customer if a company engages them on social networks.

Another important factor in a digital presence is peer-to-peer review networks. In a survey by Crowdtap and Ipsos, they found peer reviews were one of the most effective ways to reach Millennials, noting that they’re 68 percent more likely to trust product information from peers, compared to less than 50 percent from traditional media (print/broadcast). Though user reviews are not directly within your control, you may consider highlighting particularly positive reviews on your website or social media.

Leverage digital tools In the same theme of ‘going digital,’ mortgage lenders should consider taking parts of their loan processes online, in order to provide the most convenient experience for this age group. As natives of the digital age, Millennials are not only comfortable with conducting their financial affairs online, but have come to expect this capability from their service providers. A recent survey by Accenture found that 94 percent of Millennials are active users of online banking, which reveals a high demand for digital financial services among this age group.

Furthermore, a recent JD Power Survey found that 62 percent of respondents under 35 who bought a home this year would have used a mobile app to complete a mortgage application, if available from their lender.

We are already seeing some mortgage providers adapt to this growing demand by increasing their online offerings.

Though online mortgage lending currently makes up a relatively small part of the distribution channel, technology firm IRESS predicts that the online mortgage channel could double in the next 18 to 24 months.

Taking steps such as offering online calculator tools, an online application, or online preapproval process, go a long way in appealing to younger homebuyers.

Though digital solutions are “mission critical” for this age group, it’s also important to note that Millennials are looking for a balance between online options and personal advice, therefore it may not be worth digitizing the loan process entirely. Our discussions with this age group have found that many are still interested in meeting with a lending expert to provide additional guidance during the process. It’s the combination of human assistance and digital tools that will provide future homeowners with the optimal experience.

Conclusion While Millennials may be nicknamed “Generation Rent” right now, it’s clear that they won’t stay that way for too much longer. As Millennials make up an increasing share of the homebuyer market in the United States, mortgage providers must consider how to effectively reach this age group.

While a key part of the puzzle is taking more of your business online to adapt to their financial needs, it’s certainly not the only consideration. Millennials often approach the homebuying process with clear financial concerns and skepticism towards additional debt, and a deep knowledge of the available loan options is a critical step towards gaining their business.

John Pataky is Executive Vice President of the Consumer Division for EverBank. Pataky spent six years leading several divisions at Credit Suisse and nearly two decades with Bank of America/Barnett Bank, where he held senior leadership positions in areas, including retail banking, telephone banking, insurance services and commercial banking.

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Don’t take our word for it … here’s what brokers are saying about Caliber Wholesale

Wholesale Lending

Here at Caliber Home Loans, Inc., we make time to spend more time assisting our wholesale business partners, no matter how busy the markets may be. If you ever wished it was all about you, relax … at Caliber Wholesale, it is all about you. (And your clients, of course.)

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If you still haven’t discovered why we’re the nation’s #2 Wholesale Lender, contact us today at nmp@caliberhomeloans.com or visit us at www.caliberwholesale.com

Caliber Home Loans, Inc.,3701 Regent Boulevard, Irving, TX 75063. (NMLS #15622). 1-800-401-6587. Copyright©2017. All Rights Reserved. Equal Housing Lender. For real estate and lending professionals only and not for distribution to consumers. This communication may contain information that is privileged, confidential, legally privileged, and/or exempt from disclosure under applicable law. Distribution to the general public is prohibited.

n National Mortgage Professional Magazine n SEPTEMBER 2017

Coming soon … more of what you’re asking for.

Earlier this year we introduced The Ultimate Home Buyer Experience. This high-tech digital mortgage toolkit enabled our business partners to fast-track homebuyers to closing with a lot less paperwork.

Now we’re working on a mobile app that will help ensure loan pipelines are always flowing - even when you’re attending an Open House, closing or client meeting.

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Growth Opportunities in the Wholesale Market Wholesale-broker market sees 35 percent increase in originations in Q2 t’s hard to remember when mortgage brokers were the cool kids on the mortgage block. But just 11 short years ago, that’s who they were—just before their numbers seemed to disappear overnight.

Suddenly, everybody was selling the same product, and the mortgage broker lost the ability to find borrowers a better deal—because there was no better deal. Within a matter of three years, all but the plainest, brown-baggiest mortgage products had evaporated.

Meanwhile, third-party originators either left the business, became bankers or joined retail lenders as loan officers. In the meantime, the Internet took over what remained of the broker’s job by commoditizing mortgages sold online.

Today, however, mortgage brokers are back. True, they

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aren’t exactly thriving, at least not in mass numbers, but their future is once again very bright— though the brightness of their future hinges on important factors.

Great opportunities in the third-party originator market It is easy to see why mortgage brokers were so popular before the housing crisis. When the market offers many products, an experienced originator not tied to a lender will usually be in the best position to find the best price and terms. Since 2009, however, many bad and some pretty good mortgage products were regulated out of existence.

Today, the pendulum has swung back the other way.

According to Inside Mortgage Finance, the wholesale-broker market saw a 35.1 percent increase in mortgage originations during the second quarter of this year. Several large wholesale

By Greg Schatz

lenders reported large production increases and brokers took 11 percent of total origination market share. While that’s nowhere near the share of volume brokers enjoyed 10 years ago, it’s still the largest number posted in a while.

Over the past two years, the industry has also seen a significant expansion of products, thanks to the removal of creditor overlays and greater product mix in the wholesale and TPO environment. There’s a tremendous buzz in the air, as once again, brokers have multiple investors to work with and products that allow high balances, reduced appraisal requirements, non-occupant cosigners, and minimal reserve requirements. We’re also seeing a strong push into the non-QM space. Some wholesale funders are even doing their own servicing and taking on the responsibility of underwriting and

final credit decisions, which reduces risk for their originating partners.

What’s particularly exciting about this development is the pace at which these products have been accepted by the market from a securitization standpoint. At the same time, we’re not seeing lenders making overly risky low-qualify loans.

Today’s wholesale lenders are making strong, supportable lending decisions, and taking care not to offer products that put borrowers at risk of failure.

Many industry observers are wondering aloud whether the expanding guidelines spells some sort of trouble. It’s a great question. So far, however, I don’t see much evidence of it—in fact, quite the contrary. According to the Consumer Financial Protection Bureau’s complaint database, mortgage brokers had few borrower complaints compared to retail lenders.

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Experience is another reason why the broker market looks so inviting. Having worked in the TPO (third-party originator) space for more than 25 years, I can’t remember a time when sales professionals were so wellversed on so many assorted products. A lot of the growth we are seeing is coming from highly skilled, experienced brokers seeking out the best products.

They’ve returned to the space because of the performance of today’s products.

mortgage brokers in the country.

Make no mistake, we have a long way to go before we see brokers reach such numbers again. But if performance remains in step with retail loan performance, the

number of brokers will grow.

Combine these factors with more new mortgage products with few or no overlays, and it may be cool to be a mortgage broker once again.

Greg Schatz is Regional Sales Manager of the Wholesale Division of Planet Home Lending, LLC. A dedicated, skilled mortgage expert known for sales coaching and leadership, Greg is a frequent speaker at industry events, and a former president of the New York Mortgage Bankers Association.

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Why technology and service matter Technology is giving some, but not all, wholesale lenders the ability to act with amazing speed and follow-through on every aspect of the transaction while communicating with TPO partners at every turn. This provides originators with peace of mind and the freedom to focus on generating business.

The best among this breed of lenders have built dynamic online platforms for sellers that are easy to use and ensure an efficient, predictable, and smooth transaction for the borrower.

If you look at the top originators across all mortgage channels, they’re extremely efficient with technology. Yet they’re not leaning too hard on technology to become ruthlessly efficient. They’re also giving brokers the human touch.

For example, brokers still need the ability to speak with an underwriter when necessary, given the growth in the number of products, file requirements, and complicated mandates. This could be the case in which a broker is working with multiple investors that offer similar yet slightly assorted products with different requirements. In these cases, it’s important for the broker, the loan officer, or a loan processor to be able to pick up the phone at any point in the process and talk to a live person to get answers.

Brokers also need experienced wholesale partners that use innovative technology to speed the purchase process and are deeply committed to customer experience. The trick is providing common-sense underwriting and quick condition reviews, so brokers can keep pipelines moving.

When program details or

requirement issues arise, it’s incumbent on the wholesale partner to follow up with the broker and follow through on every detail. Wholesale partners also earn trust by operating as cost-efficiently as possible. This may include hiring overseas, being able to guide every element of the loan transaction, and delivering as much communication to clients as possible.

In 2006, there were 25,000

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Rebooting Mortgage Servicing With FinTech Solutions By James V. Luisi he housing market contributes approximately 18 percent of the U.S. GDP. With so much at stake, a recent Treasury report on the U.S. financial system is recommending extensive mortgage lending reforms.

The U.S. Treasury Department states that regulatory requirements have significantly and unnecessarily tightened the credit box for new mortgage originations, denying many qualified Americans access to mortgages. In addition, regulations have significantly increased the cost of origination and servicing activities, which, when passed on to borrowers in the form of higher mortgage rates, have decreased the number of Americans that can qualify for mortgages.

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Hello HMDA Included in the mix of industry transformations is the January 2018 deadline to collect much more finegrained loan data about borrowers and loan costs under the Home Mortgage Disclosure Act (HMDA).

The new HMDA rule requires reporting on 48 data fields— including 25 new data fields mandated by the Dodd-Frank Act, as well as fields required by the CFPB under its discretionary authority.

Some of the new HMDA fields include: l Age of borrower and credit score l Combined loan-to-value (CLTV) ratio l Borrower’s debt-to-income (DTI) ratio l Points and fees l Discount points l Lender credits l Loan term l Prepayment penalties l Non-amortizing loan features l Interest rate l Rate spread for all loans According to the Mortgage Bankers Association, this new HMDA rule will bring major challenges to the residential mortgage industry, including: l Extensive implementation costs for systems and business process changes immediately on the heels of the implementation of the TILA-RESPA Integrated Disclosure (TRID) rule.

fulfillment to the user in the portal to manually use as part of their mortgage servicing and business operational procedures. The financial services provider then sends a monthly invoice to the lender for all orders.

Point-of-sale The next generation of product is the point-of-sale solution, which typically features two or three products with limited event types, such as place order, cancel order and receive order. The point-of-sale solution is typically integrated into a commercial loan origination system (LOS), such as Encompass or LendingQB, usually not requiring the user to login to each vendor’s point-of-sale solution.

“Burdened by regulations and the need to manage collaborations and communications with dozens of ancillary financial service providers, the mortgage industry needs a reboot!” l Privacy and data security concerns, because the new data set contains confidential information—such as credit scores—which if improperly released could cause significant harm to borrowers’ claims against lenders, and even undermine homeownership. l Increased litigation risk. HMDA has been a major source of fair lending claims in the past, and the new data will allow greater analysis of application and loan data to evaluate impacts on protected classes. While HMDA’s purpose is to shine light on lending practices, data can be misused to present unfair claims—forcing costly litigation defense, and/or settlements and causing significant reputational harm.

FinTech solutions transforming mortgage industry Burdened by regulations and the need to manage collaborations and communications with dozens of

ancillary financial service providers, the mortgage industry needs a reboot!

Fortunately, fintech solutions are evolving to deliver advanced lending process automation. New solutions exist today that simplify and streamline mortgage servicing, such as appraisal, verification services, valuation, flood zone determination and more.

First, let’s look at the progression of financial technology platforms.

Vendor portal The stand-alone vendor portal allows for ordering products from an individual loan originator, usually involving just one product, but may include a several mortgage servicing products. Users login to each of their stand-alone vendor portals using a user name and password. This process is difficult to secure from individuals outside your organization when your employees share their user names and passwords.

The stand-alone vendor portal generally returns the order

Basic assembly line The next generation of product to emerge is the basic assembly-line technology that integrates into the lender’s proprietary loan origination systems. This platform can support a larger variety of product types.

The major benefit is the ability to support the lender and mortgage banking operational workflow for higher levels of productivity and processing large numbers of loans in an assembly-line style process.

One draw-back with assemblyline technology is that customization and integration with mortgage lenders’ existing systems can be time-consuming and expensive.

Lending process automation The most advanced fintech allows lending process automation, including dashboards that can be customized for banks and mortgage lenders’ needs.

By automating the mortgage servicing process, manual inputting errors and redundancies are minimized. Fewer people can do more work. Once information has been captured for a particular loan, subsequent product orders will automatically prefill the forms.

Duplicate orders are identified to help lending institutions to contain costs. Banks, credit unions, lenders and financial institutions reduce processing fees and gain greater productivity.

Let’s take a closer look at how lending process automation fintech accelerates the mortgage loan process.

1. Repetitive and time-consuming tasks will be eliminated. Mortgage service team members will be freed up to focus on more profitable,

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3. A dashboard and customized reports on the performance of financial services providers gives mortgage lenders the ability to evaluate the loan process at every milestone. The dashboard will include metrics offering lenders additional insight into operational performance with alternate options to sequence and time their orders.

Armed with this information, financial institutions can make decisions to finalize mortgage loans faster.

The system can also conduct compliance checking and invoice reconciliation for lenders, calculating each provider’s monthly invoice, as well as management of the dispute process.

This level of transparency allows banks to take advantage of preferred pricing, volume discounts and better manage contractual terms to control costs.

4. The most advanced fintech solutions also provide comprehensive security and redundancy. Modern architecture should be expandable in AWS with full disaster recovery capabilities.

The technology will be stable, reliable and easy to integrate into existing systems. With advanced protection against attack and intrusion the platform should include advanced denial of service (DoS) safeguards built into its architecture.

In an industry facing expanded regulations, smart mortgage lenders and financial services providers are exploring fintech solutions to maintain a competitive advantage.

Lending process automation simplifies communications and order management and speeds loan completion, while managing transaction costs. Savvy financial institutions that embrace the most advanced fintech solutions offering comprehensive mortgage lending process automation will be more productive, profitable and offer enhanced customer service.

James V. Luisi is Chief Information Officer/Chief Technology Officer of KeyStoneB2B. He has more than 30 years of experience in business and IT focused on integrating diverse systems to best serve customers, shareholders, business and IT stakeholders. For more information, visit KeyStoneB2B.us.

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2. Using a modern order management platform, banks, credit unions and all financial institutions involved in mortgage lending, can interface with multiple financial services providers–from appraisal management companies and title providers to employment verification, flood determination and more.

The communications, documentation and each step in the process are saved in the system, including credit verification, automated valuation model, property titles, location maps, photos, comparable property information, inspections and other reports. With all documentation in one easily searchable database, communications between lenders,

banks, realtors and financial services providers are simplified, facilitating transactions.

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higher level work–such as prospecting and communicating with borrowers. l The fully automated lending process will include background checks, contracting, and legal review through contract e-signed or wet-signed. l Lenders’ rules and guidelines are stored in the system ensuring mortgage service providers comply with requirements of the banks and financial institutions. l Electronic capture of all compliance documents, including all policies and procedures, licenses, insurances, bonds, and pertinent plans. l The automated system minimizes errors, manual inputting and duplication of efforts for superior loan processing speed. l The streamlined system eliminates charges for reprocessing of orders with errors.

For example, when the borrower initiates payment for a property appraisal, the system can automatically schedule the appraisal at the same time, minimizing steps in the process. A typical appraisal can take as long as 60 to 70 days. By automating the process, mortgage lenders could decrease the time to 10 or 15 days and assist in closing more loans.

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Growth Opportunities for Mortgage Bankers Via the Wholesale Channel By Sharon Falvey he market has not seen a cycle like this in years. After a long economic recovery, interest rates are back on the rise, which means that opportunities in the mortgage space are starting to change dramatically.

Most of the time, property owners refinance their existing mortgages in an effort to reduce their monthly payment. Over the past eight-plus years, this proved to be highly profitable for mortgage bankers, as homeowners sought to take advantage of record low interest rates.

But now that interest rates are on the rise, that market is starting to dry up, and quickly:

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l Less incentive: Higher interest rates mean that homeowners may not save an adequate amount on their monthly payment to warrant refinancing their mortgage. l Smaller market: Nearly a decade of record low interest rates means that many homeowners that were locked into higher interest loans have already refinanced.

Every time interest rates are pushed higher, this means less opportunity for the refinance business. Loan originators will need to depend solely on purchase business, and that market alone may not be enough to sustain profits in the long term.

One solution that is becoming increasingly sought after in today’s market is the reverse mortgage, and those interested in augmenting their forward mortgage services may find that reverse mortgage offers the greatest return on your time investment.

Reverse mortgages: An opportunity to offset loss of revenue Home Equity Conversion Mortgages (HECMs), known colloquially as “Reverse Mortgages,” are becoming one of the most effective ways to fill

that void left by the loss of refinancing prospects, and offset the loss of revenue for forward refi specialists.

These mortgages allow seniors to turn their home’s equity into cash, or use it to stop making expensive monthly mortgage payments or purchase a home. They are only available to seniors, and they are non-recourse loans that are only due if the senior passes, or decides to move. Homeowners must continue to keep property tax, homeowners insurance, etc. current.

Every day, 10,000 Baby Boomers reach the age of 62.

Many of these individuals own their home outright, or have at least obtained 50 percent equity. A plurality of them are also worried about retirement, as well as planning for the costs of unforeseen expenses. Since no payment is ever required for a reverse mortgage, this type of loan is in demand like never before, with advantages to both the client and the loan originator.

Start by leveraging your Book of Business (BOB) into refinance opportunities For experienced forward mortgage loan originators, moving into the reverse mortgage world is often a seamless transition. Chances are, you have already developed a BOB and have maintained a CRM database or a spreadsheet of past clients.

These are clients that already know you and trust you. There is no need to start from scratch, as they are clients you’ve worked with in the past. If any of them are over 62 with at least 50 percent equity, contacting them and presenting reverse mortgage as a possible retirement solution can start to generate revenue for this service right away.

Most Baby Boomers do not feel confident that their retirement portfolio–if they have one at all– will last as long as they live. They are a generation that is looking for solutions, and reverse mortgages provide that solution.

“Loan originators will need to depend solely on purchase business, and that market alone may not be enough to sustain profits in the long term.”

The risks of outliving cash can be reduced Whether you have a strong BOB or not, there are many selling points that make reverse mortgages an asset for clients, and thus, a valuable service for mortgage bankers.

For example, one of the fears many seniors have is that they’ll be too healthy for their savings.

With all retirement savings, including reverse mortgages, there is a fear of outliving the cash they have available to them.

As Americans live longer, they are being forced to budget their retirement savings more.

They may even be hesitant about taking out a reverse mortgage before they are ready and worry that if they take it out, they may run out of cash too quickly.

But there are solutions for that problem. Seniors can take out an ARM reverse mortgage and make whatever payments they can each and every month. Every time they

make a payment, that payment becomes a line of credit that they can access at a future date.

If they are still working, they can make a payment against their reverse mortgage loan. The amount of their payment will reduce their loan balance, and because it is an ARM loan it will open up a line of credit dollar for dollar. It also has a growth factor that compounds, and a reverse mortgage may help them hedge against their risk of foreclosure.

If they do not have the means, they can discontinue payments at any time, and restart them whenever they feel comfortable.

Unlike a forward mortgage, those that stop payments on a reverse mortgage are not in danger of foreclosure. All payments are optional. This makes it a refinancing tool that is highly advantageous for Baby Boomers.

HECM for Purchase: Another popular option for seniors Reverse mortgages are also an

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advantageous service, because they can be used in broad ways. For example, not all seniors are done moving. As men and women continue to age, they start to change their preferences. They may want a smaller house, or to be closer to family.

Reverse mortgages can help there as well. Known as HECM for Purchase, seniors can “right size” or purchase a home that is closer to family without as much of a financial investment.

For example, say a 65-yearold senior wanted to sell their home to move into a smaller home for $250,000. They generally have three options:

revenue? It starts with a partnership. Those that took part in reverse mortgages over a decade ago are going to notice that things have changed. To be an expert, you really need to consider working with a lender that has the tools to equip you, and one that takes a special interest in the value that reverse mortgages have to both originators and their clients.

Indeed, whether you’re just

trying to break into the reverse mortgage space, or you have experience with this type of lending option, finding a lending

partner that has the tools to prepare you for the boom that is about to occur in the field is the best way to get started.

Sharon Falvey is Vice President of Sales at Open Mortgage, and a long time passionate reverse mortgage subject matter expert. She has mentored and trained hundreds of marketing coordinators and branch Managers, and is regularly asked to speak at mortgage conventions and sales events.

l Pay the $250,000 in cash l Take out a mortgage that requires monthly payments to avoid foreclosure l Pay around $125,271 in a downpayment, and take out a reverse mortgage for the remaining

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Already working with reverse mortgages? There are ways to make it better Mortgage bankers and loan originators that have been concerned about the future of refinancing should strongly consider reverse mortgages, as this is an exciting time for the industry and a great service to offer clients. But for some mortgage bankers, this isn’t news–many have worked in reverse mortgages before.

So how can you use that experience to improve your

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In the latter scenario, they are able to keep an additional $125,000 of their own money, and they will not need to make any additional mortgage payments or be at significant risk of foreclosure. To retirees, cash is king, and this allows seniors to put more cash in their portfolio with less financial risk.

On the contrary, one could also upsize their home with a combination of cash and a reverse mortgage and not have to make a monthly principal and interest payment.

Reverse mortgages are a tool that can help seniors thrive before and during retirement, and that means that you will be able to offer a valuable, diverse service to complement your forward mortgage work.

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The Year 1995 Is Calling …

By Eric Weinstein

Help! have a real puzzle, conundrum, mystery, enigma, poser, dilemma and brainteaser. I just cannot wrap my tiny brain around this and I need your help.

I am knocking on the door of 60 years of age, and am trying my best to embrace the new technology you Millennials are foisting on me. Kicking and screaming the entire way, I might add. Online loan applications, social media advertising … you name it. I absolutely hate it, but “evolve or go extinct,” the industry says. Now I take my loan applications online, whereas I used to visit the borrowers in their home. No longer do I fill out their loan application at their kitchen table while sharing a cup of Joe. It has become “Download this, click that, scan and e-mail those.” Yes, it is less wear and tear on the old car and fewer dry cleaner bills, but I miss the human interaction. “It is the 21 Century, Eric. Get with it,” they shout in my good ear.

So, I comply.

I read a recent article in this fine publication, and it said:

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While the majority of prospective homebuyers do their research on home loans online, they prefer to handle their applications in the presence of a loan officer.

According to a new survey of nearly 2,000 adults conducted on behalf of the American Bankers Association, 60 percent of Americans stated that, while they use the Internet to research their home loans, they would rather apply for a home loan in person. In comparison, 17 percent of respondents preferred to apply for a home loan online, while the remaining 23 percent said they were unsure.

So, which is it?

They are telling me they want a “square” circle.

How am I supposed to do both?

On the one hand, the industry is telling me to go all digital. On

“People SAY they want the good old days, but they really don’t.”

the other hand, the article says people prefer the “in-person experience.”

ARRRG! …. “Pop!” That is the sound of my head exploding.

Here is a hint …

I was at a closing the other day. While the borrowers were young first-time homebuyers, the settlement agent and Realtors were ancient like me.

One of the Realtors was an appraiser in a previous life. We got to reminiscing about the “good old days,” when we all lived glued to the thermal fax.

We faxed title orders and appraisal requests to our favorite appraiser. Of course, this was before some guy named Dodd-Frank so rudely broke up our friendship. We laughed that our income depended on every time that fax rang and how we missed it.

Then, the very next day, I am e-mailing a title order to a title company. I always ask them to confirm receipt. A day goes by and no confirmation from them.

How rude! So I e-mail them

again the next day. And then again the following day. Still no response. I know they are getting my e-mails because we are e-mailing about other things. But when I ask them to please confirm the order, radio silence. Maybe it was just low blood sugar that day, but now I was getting really peeved. I e-mail them that if I do not hear from them by the close of business that day with a confirmation, I am taking my business elsewhere. I copied

the Realtor and buyers for good measure with a copy of all four of my previous e-mail requests asking them to please confirm the order. Plus, I added, I want an explanation of their rude behavior.

Wouldn’t you know, they got that e-mail! I got an e-mail back from the office manager saying that their server diverts/deletes all e-mails with attachments and no one ever got my title order. He said I will have to fax all paperwork to them for the deal.

Hello?!?! You have a call from 1995, they want their pager back. Are you kidding me? Fax all the paperwork? I told them ABSOLUTELY not.

What kind of business are you running? I am not faxing anything when title companies are a dime a dozen. Did he want me to call his pager and add 911 so he knew it is important? Wait, let me find a pay phone.

I wrote them to “please inform your IT Department that they have lost you this deal.”

So there is the answer to my riddle.

People SAY they want the good old days, but they really don’t.

People say they would “rather apply for a home loan in-person,” but whenever I have given them a choice, 100% prefer to do the application online rather than clean the house and serve coffee to some guy in a wrinkled suit driving a 1997 Toyota Camry.

My daughter says she wants a pony, but when it comes down to it, “No, not really, daddy.”

She will settle for the new virtually reality “Equestrian Quest” game for her XBOX.

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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Who’s Who in the

2017

Wholesale Marketplace Company Name

Web site

Specialty or Niche

State(s) Licensed In

INSERT: AFR_Logo]

AFRWholesale.com

Renovation/Construction to Permanent Lending and Manufactured Housing

American Southwest Mortgage Corp.

AMSW.com

Government Loans

AngelOakMS.com

Non-QM Wholesale Lender

Nationwide, Except PR, AK, HI, ID, ME, MA, MO, MT, NH, NY, ND, SD, VT, WV & WY

Barnett Capital Ltd.

BarnettRefinance.com

Private/Hard Money Lender

Nationwide

[INSERT: Caliber_Logo]

CaliberWholesale.com

Conventional, Government, and Non-Agency Portfolio Products

Nationwide

[INSERT: CMS_Logo]

CarringtonWholesale.com

Government and Conventional

[INSERT: Citadel_Logo]

CitadelServicing.com

Non-Prime & Non-QM

[INSERT: Crescent_Logo]

CrescentMortgage.com

Bank-Owned, Agency, FHA, Jumbo Portfolio & Fulfillment

Drop Mortgage & Fund Loans

Fundloans.com

Non-Prime Loans

Fairway Wholesale Lending

FairwayWholesaleLending.com

Full Agency Product, Offering Gov’t Specialists, Jumbos & High Balance

Nationwide except for HI

45 states

Nationwide, Except for MA & ND

Nationwide, Except for ND, SD, IA, MO, NM, MS, OH, NY, WV & MA Nationwide, Except in NY & HI

CA, AZ, CO, AZ, OR, TX & FL Nationwide

W H O ’ S

W H O

Company Name

I N

T H E

2 0 1 7

W H O L E S A L E

M A R K E T P L A C E

Web site

Specialty or Niche

State(s) Licensed In

Finance_of_America_Logo]

FAMWholesale.com

FHA, VA, Agency, Jumbo, Commercial, Renovation Lending & Simultaneous Seconds

Firstrust Bank

FirstrustOnline.com

Portfolio Product

[INSERT: FL_Capital_Logo]

FLCBMTG.com

Jumbo, Warehouse Line, Conventional, VA, FHA, USDA, Condo, Approved FNMA, GNMA & FHLMC

[INSERT: Freedom_Logo]

FreedomWholesale.com

#1 VA Lender (IMF 2Q17)– Offering Competitive Products and Pricing for Conventional, FHA, VA, USDA, Jumbo & More, Including Freedom Solutions & Freedom First Programs

All 50 States, Puerto Rico and D.C.

[INSERT: GMFS_Logo]

GMFSPartners.com

Residential Mortgages Only

AL, AR, CO, FL, IL, LA, MS, TN, TX & UT

Guaranty_Trust

GuarantyTrust.com

Specializing in Conventional, Government & Jumbo Lending

33 States Nationwide

HomeBridge

HomebridgeWholesale.com

FNMA, FHLMC, FHA, VA, USDA, Jumbo, 203(k)/HomeStyle Renovation, HomeReady, Home Possible, Piggyback HELOC, 90% LTV to $1.5 Million With No MI, 80% LTV to $1 Million With Bank Statement Program-IO Available, Non-Del Correspondent, 24-Hour Purchase UW

Lakeview_Logo

LakeviewWholesale.com

Agency and Portfolio Product Lender

LandHome_Logo

Wholsale.LHFS.com

Downpayment Assistance

Liberty Home Equity Solutions

LibertyHomeEquity.com/Partner

Reverse Mortgages

loanDepot_Logo

LDWholesale.com

Conventional Conforming, Conventional Hi-Balance, HARP, Non-Agency, FHA & VA loans

Nationwide, except NY

PA, NJ, DE, NH, ME, CT, VT, RI, MA, FL & VA Nationwide, Except for HI & AK

Nationwide

Nationwide, Except for NY, CT, HI & NV

Nationwide

Nationwide, Except for HI & SD Licensed in 46 States and the District of Columbia

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W H O â&#x20AC;&#x2122; S

W H O

Company Name

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I N

T H E

2 0 1 7

W H O L E S A L E

M A R K E T P L A C E

Web site

Specialty or Niche

State(s) Licensed In

MB_Financial_Logo

MBMortgage.com

100-Year Old, Multi-Billion Dollar Bank, With Superior Client-Focused Service From Underwriting to Closing. Key Products Include FHA, VA, USDA, Fixed-Rate, Adjustable Rates & Jumbo

Mortgage Click

TheMortgageClick.com

Loans to Veterans

Motive Lending

MotiveLending.com

Conventional, FHA, VA, USDA, Jumbo & Non-QM

Nations Direct Mortgage

MyNDM.com

Purchase, Affordable Lending Products, Fannie Mae & Freddie Mac

Newfi Wholesale

NewfiWholesale.com

Agency, FHA, Jumbos, Non-QM & Commercial

Only AZ, CA, CO, FL, NJ, OR, PA, UT, WA

NewLeaf Wholesale

NewLeafWholesale.com

Your Success Through: 180-Day Extended Lock on TBD Property (exceptions apply), Broad Product Range, One on One Boutique Service

AZ, CA, CO, FL, GA, HI, ID, IL, LA, MD, NE, NJ, NM, OR, SC, TN, TX, UT, VA & WA

New Penn Financial

GoNewPenn.com

FHA, VA, Jumbo, Non-QM, Bank Statement & Condos

New Wave Lending Group

NewWaveLending.com

Agency & Jumbos

Oaktree Funding Corp.

OakTreeWholesale.com

Non-Agency/Non-QM

CA, AZ, FL, CO, UT, WA, NV, MD, TX, TN & OR

Orion_Logo

OrionLending.com

Wholesale Mortgage Lending

Nationwide, Except AK, AR, ND, SD, MA, MS, NY, WV, WY & VT

Patch_of_Land_Logo

PatchOfLand.com

Private Money Lender Specializing in Fix and Flip Financing for Real Estate Investors

PB_Financial

CalHardMoney.com

California Residential and Commercial Hard Money Loans

Plaza Home Mortgage Inc.

PlazaHomeMortgage.com

Wholesale, Mini-Correspondent, National Correspondent, Reverse & Renovation Lending

PRMG_Logo

PRMG.net

Government, Conventional, Jumbo, Seconds and Non-Agency

Nationwide, Except AK, IA, MS, MT, WV & WY

California

35-Plus States

Nationwide, Except for ID, WY, SD, NE, KS, NM, IA, AR, MS, WV, NY, VT & ME

Nationwide, Except for HI & AK CA

Nationwide, Except for AZ, MN, NV, SD & UT

CA

Nationwide

Nationwide, Except for HI, NY, MO & WY

W H O â&#x20AC;&#x2122; S

W H O

Company Name

I N

T H E

2 0 1 7

W H O L E S A L E

M A R K E T P L A C E

Web site

Specialty or Niche

State(s) Licensed In

Reliant Funding Group

ReliantFundingGroup.com

USDA

REMN_Logo

REMNWholesale.com

FHA, Conventional, Renovation Loans, FNMA, FHLMC, VA & USDA

Stearns_Logo

StearnsWholesale.com

One Stop Shop Wholesale Lending. Cutting-Edge Technology, Coupled With a Robust Product Line Offered at a Competitive Price With Best-in-Class Customer Service.

Nationwide, Except for NY

UNMB_Logo

UNMB.com

FHA, HECM Reverse Mortgages, H4P & H2H

AL, CA, CO, CT, DC, FL, GA, MD, NJ, NY, NC, PA, SC, TN, TX & WA

UWM_Logo

UWM.com

Conventional, Agency Paper & FHA

USA Direct Funding

USADirectFunding.com

Govy Credit Score Down to 600, Manufactured Homes, Conventional, Jumbo & All Govy Products

CA, FL, GA, KY, NJ, NC, OH, PA, SC, TN, TX & WV Nationwide

Nationwide

OR, WA, ID, CA (AZ Coming Soon)

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Velocity Mortgage Capital

VelocityMortgage.com

No-Income Verification Loans

We are seeking nominations from our readers for National Mortgage Professional Magazine's "40 Under 40" feature, slated to appear in our December 2017 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 NMPMag.com/nominate40under40.

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nominated

NationalMortgageProfessional.com

?

are you

Nationwide, Except NV, ND, SD, MN, TN, VT & NH

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CampusT he kids are back in school. The vacations are over and done with, and now is the time that many loan officers regroup and refocus on finishing the year strong. There are many things that need to be looked at when setting yourself up for the remainder of the year to produce the results you want to have.

First and foremost, you need to do a check in with your goals and see where you are in relation to what you set out to accomplish at the beginning of the year. Beyond just reviewing what you have accomplished in

T

relation to income and production, it is critical to look at current market conditions and project to the best of your ability what must be done to finish the year strong. In addition, what must be part of your end of the year plan needs to align with your goals and strategies for 2018.

The guidance that I provide my coaching clients is to ask and answer a number of critical questions that assist you in defining your plans moving forward. l Where am I exactly in relation to my production goal for 2017?

l What worked well for me this year thus far? l Is the market changing, and if so, how might it impact my future production? l What adjustments, if any, do I need to make to my current business success strategies based upon my anticipation of where the market is heading? l What skill sets do I need to improve upon to ensure my success in reaching my goals?

One of the biggest challenges facing loan originators today is going beyond focusing only on transactions and the day-to-day business needs. It is this singular

focus that often keeps many MLO from taking the time to truly evaluate exactly what is needed for top performance. One of the mental blocks that exists is that we all know that if we take the time to truly assess what we are doing, we will absolutely need to make changes and improvements.

A behavior pattern, not only loan officers, but almost all human beings, is that we tend to shy away from really uncovering the truths about what we need to change. More often than not, we donâ&#x20AC;&#x2122;t want to hear the truth, even if it is coming from within our own mind. Many of us know what

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behavioral changes, or improvement on skills, that we would like to make will require time that we either believe we don’t have, or are unwilling to commit to doing. It is here that many loan officers get blocked from either reaching their goals, or building a platform for success in the future.

Don’t get me wrong, there are plenty of originators that will succeed based upon market conditions that exist today. All too often, we see in the mortgage industry that when the market changes most originators and even mortgage companies panic to adapt to the movement.

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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we need to change or improve, however unless we make it a “must,” we tend to let these thoughts sit on the sidelines most of the time. However, when we make it an absolute “must” that we will change something, then our mind really goes to work on making it happen.

A commitment to change, although we know is for our own betterment, still requires energy, focus, and time. We are all so busy working in our business day today, that the thought of committing more time often creates stress because we don’t know how we will get it all done.

Usually what happens is the

By Ron Vaimberg

As an industry coach and trainer, I have seen many loan officers succeed at the highest level, but so many more fall by the wayside because of a lack of focus beyond what was in front of them. All it takes to achieve great success is to always devote at least some time work towards being a better and more skilled mortgage professional.

Make the time and take the time to properly evaluate what you need to ensure you achieve your goals. Plan and schedule the activities the same as you would an appointment into your calendar, and you will always be advancing yourself to new heights.

NationalMortgageProfessional.com

sTalk

We have heard the quote probably 1,000 times on what made Wayne Gretzky so great of a hockey player. He said, “I skate to where the puck is gonna be, not where it has been.”

There is a big difference between being transactional and building a business.

Transactional gets you paid today, however it does put you at risk for the future. When you take the time to plan for the future of the market by developing the right strategy and skills, while simultaneously taking advantage of the current market conditions, you have positioned yourself for success no matter what happens in the future.

Are Buyers Really Liars or Is It You?

By Brian Sacks

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ne of the first things I heard years ago when I started as a Realtor was, “Brian, you’ll quickly find that most buyers are liars.” That struck me as being very strange, but a year later when I started as a loan officer, I heard the exact same saying.

But what I have come to find out is that it really has much more to do with the person asking the questions and the actual questions that are being asked. So let’s dive in and break down each of the items we need to know, and the right and wrong way to ask questions.

There is a lot of psychology that must be taken into consideration when asking someone you have just met all of the personal questions that are part of our job.

Just like the computer saying: GIGO, “Garbage In, Garbage Out.” The questions we ask matter. In fact, they will either build rapport or completely alienate the buyer and have them running to a different lender.

O

Before we even discuss the questions we need to understand positioning Consider first that we are all viewed as “Heads of Lettuce,” which means that we are a commodity. The consumer only

knows to judge us on price, not expertise. So a loan officer with a low rate who has been in the business three months is often able to get a deal away from a seasoned pro with 25 years of experience that has a higher rate.

There is a way to fix this by becoming an expert that I show you in the Boomerang Expert system at BoomerangExpert.com/nowv2.

Your phone rings and on the other end is a borrower who wants to get pre-approved. The borrower doesn’t know you and you don’t them. The way in which they were referred to you matters a great deal in this situation.

If a Realtor/friend/co-worker or other professional referred them, this conversation will progress much better than if they just saw your ad or face on Zillow.

You must position yourself as an expert … period!

When you go to a doctor, they speak with you and then examine you. They then make a diagnosis and provide a remedy or prescription. You don’t question it if you are sick, you just do it. Granted you may want a second opinion, but you aren’t price shopping. You just want confirmation. That is exactly how you must be seen to be successful or you will spend your day being a rate quoting machine or even worse, doing

nothing but hoping the phone rings.

Now back to the important questions we must ask and deciding if buyers are really liars?

Think about our job for a second and how truly awkward it can be.

You start the conversation, and then ask. l How much do you make? l How much do you have in the bank? l How’s your credit?

Really stop and think about that for a minute … you have now asked a total stranger all of these personal questions. Heck, you might not even ask a person you are dating or a family member these personal questions right?

Start with questions not related to their personal finances I generally start by asking a client their name and contact information. Then, we discuss where they are in the process, and finally, how they were referred to me. To be perfectly transparent, I generally prefer and offer to meet them in person. Nothing is better at building rapport than meeting a person face-to-face so you can get to know them and have them feel comfortable with you.

The added benefit of course is that if you have prepared them properly, they will be providing you

with their bank statements, W-2s and paystubs. When someone has gone to the trouble of providing you with their information, you have immediately reduced the chances that they will shop rates when they finally purchase a home.

Lastly, I always start by asking them questions about what their goals are. How long do they anticipate being in the home? Have they seen any homes they liked?

Now to the questions and if buyers are really liars Let’s start with the first question which is about income. l How much do you earn? This may sound basic to many of you reading this, but this is actually a question I hear being asked. The buyer on the other end says, “I earn $80,000 and then you later find out that it is made up of $50,000 from salary and $30,000 from overtime which he only started working last year.” l Is this buyer lying? We know that overtime, bonuses, and commission income must be averaged over 2 years. But your buyer doesn’t know that and so they are simply answering the question you asked them.

Instead of asking the “How much do you earn?” question, try this … l What do you do for a living?

l Are you paid hourly or salary? l Do you work overtime or receive bonuses?

Make sure you end your conversation correctly Now that you have all of their information you need to suggest the various programs that would be best for them, explain the differences and why you are recommending the programs that may be best for them.

As you are wrapping up, you

should also encourage them to send you their documentation of income and assets so that you can keep them on file for when they find the home they want to put an offer on. You should also explain the difference between prequalification and pre-approval. Let them know that you would be happy to provide them with a preapproval letter to accompany their contract once you have received their supporting documents.

Aside from needing to verify what they have told you for income and assets, collecting this information stacks the odds in your favor of getting their loan when they are ready to apply since most people would prefer not to have to gather all the information and send them to various lenders.

The bottom line is that buyers are generally not liars, but there are many lenders that are simply not asking the right questions.

Print out this article and keep these questions handy for your next phone call or meeting.

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

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easier psychologically for them to provide it.

One last important item on their credit report.

Many times, your client will tell you that they already know their credit scores because they are signed up for Credit Karma or get it on their credit card statements.

It’s important for you to explain to them that there are different scoring models for credit cards, installment loans, and of course mortgage financing.

While we are on the topic of debts you should of course also ask them if they are paying or receiving alimony or child support.

NationalMortgageProfessional.com

Lastly, let’s discuss credit You should never ask the buyer, “How’s your credit?” There’s nothing worse than working with a client for months only to find out Of course, if they are selflater when you run their report that employed or commissioned-only employees, we will need to see their they have serious issues.

Most buyers are very tax returns and use their net income apprehensive about having their not their gross. credit run because they fear it may hurt their credit scores. It’s Now let’s move on important to let them know that the question about assets although pulling credit is a hard I hear loan officers asking buyers, pull, it should not seriously affect “How much money do you want to use?” or “How much money do have their credit. You may need to also to work with?” The problem with this let them know that all mortgage pulls within 30 days count as one question is that the buyer imagines pull, and again, should not your hand going into their wallet or adversely affect their scores. purse and they immediately tense I try to explain it this way: “I up.

Think about the last time you asked would like your permission to pull this question and the awkward silence your credit report. It’s important for us to know you credit scores and for a few seconds you heard on the it’s a good idea for you to make other end of the line. sure that the information on your Instead, try asking the same credit report is accurate. We often question this way: “How much do find items on clients’ reports that want to invest in this transaction? they were not aware of.”

You will need some funds for the Once you have said this, it downpayment and closing costs, critical that you immediately ask and this will help me suggest the them for their date of birth, proper program options for you.” address, and Social Security Depending on their answer, you may also need to suggest first-time Number.

It’s also important to ask for buyer grants and how lender and these items in this exact order since seller credits work. You can also their Social Security Number is the explain gifts from relatives, as well one piece of information people try as withdrawals or loans from their to protect the most. Asking for it retirement accounts, which are sources they may not have thought last , after they have given you all of the other information makes it of.

l Flagstar Bank has hired Kristy Fercho as President to lead the company’s mortgage business. Fercho previously served as Senior Vice President and Customer Delivery Executive for Fannie Mae.

Rob Walker CMB, CMT, is Vice President of Analytics at Veros, an award-winning mortgage technology company. Rob is a 20-plus year veteran of the real estate data and analytics field.

He may be reached by phone at (866) 458-3767 or e-mail Communications@Veros.com.

SPONSORED EDITORIAL

l American Advisors Group has added Ted Zepfel as Vice President of Operations for Alternative Distribution, where he will oversee all operational facets of the national field sales and wholesale divisions, including loan setup, processing, underwriting and funding, as well as operations

POULIN

CHALMERS

optimization among AAG’s departments.

l Mortgage Network Inc. has announced that Jeffrey Chalmers has joined the company as a Sales Manager serving the Massachusetts region, with plans to expand his territory across New England and the states of Florida, Georgia and California. Matthew Poulin has rejoined Mortgage Network Inc. as a Loan Officer in the company’s Auburn, Maine branch office, responsible for serving homebuyers and homeowners throughout the Auburn, Lewiston, Brunswick, Bath and Topsham, Maine areas.

SPAULDING

l Equity National Title has named David Boyum Executive Vice President, National Sales Manager where he will be charged with expanding the firm’s national sales effort, as well as servicing the firm’s existing client base.

continued from page 60

WIRTH

l Barbara Yolles has teamed up with The Money Source Inc. and its Wholesale Lending Division, Endeavor America Loan Services, as the company’s new Chief Marketing Officer to accelerate and guide the company’s nationwide growth and innovation.

ZEPFEL

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YOLLES

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esidential mortgage markets have been making a shift from refinance to home equity lending. Rising mortgage rates, shrinking inventories, and strong home value appreciation are motivating homeowners to stay put and remodel their homes. The 2017 LightStream Home Improvement survey found that 59 percent of homeowners plan to increase renovation spending this year and will tap varying strategies to pay for the renovations. Of those strategies, nine percent are expecting to use a Home Equity Line of Credit (HELOC).

With high appraisal costs and no guarantees that customers will create outstanding balances on HELOCs, many lenders have determined that the “cost” of the valuation isn’t commensurate with the “value” of the information in the underwriting process. In response, lenders are leveraging AVMs for their proven accuracy, quick turn-time, and costs 1/10 of traditional appraisal.

The best AVMs deliver estimates with meaningful confidence scores, have remarkably high hit rates, and are rigorously tested. If time and origination costs are critical and revenue streams are uncertain at best, why engage in costly valuations like drive-by appraisals? Therefore, AVMs should be used where it makes the most sense—in equity lending, where time and cost are critical, and a low-cost but accurate solution is needed.

Some have argued that AVM accuracy cannot be trusted.

Then, the definition of an accurate valuation must first be defined. No matter what your answer is, AVMs can answer it with a great deal of statistical rigor that no appraiser can. If you know your desired valuation “accuracy” level, there is an AVM solution that will get you there. The only variable is that higher levels of valuation accuracy tend to be associated with lower AVM hit rates. In the end, the trade-off between risk and cost is one that can easily be made at the lender level and executed with AVMs and a powerful AVM platform like VeroSELECT. Before firing up the AVM tool, it’s important to recognize that not all HELOCs are created equal. Each borrower has different credit standings which produce different requirements for the lender. Therefore, each lender will deploy varying valuation risk management policies. A riskier applicant may require further valuation rigor, while a great credit standing applicant may be given a wider aperture in terms of property value. Today, lenders require absolute control over their valuation workflow and credit policies. For added confidence, they require transparent risk management that creates audit trails for decision logic changes related to AVM implementation and usage.

VeroSELECT lets lenders put all their decision criteria into the system and it will make the right decision that is consistent with the lender’s credit policy every time. No matter what AVM you choose, VeroSELECT is the best option.

BOYUM

By Rob Walker, CMB, CMT

Bateman as Director of Compliance Operations-a new position for the company.

FERCHO

Not All HELOCs Are Created Equal

heard on the street

l Waterstone Mortgage Corporation has announced that Dan Spaulding has joined the company as the Regional Vice President of Retail Production, responsible for overseeing operations and retail growth throughout the Midwest.

Waterstone Mortgage has also announced that Kerry Wirth has been promoted to Chief Operating Officer, where she will be responsible for leading the company’s operations departments and companywide initiatives. Wirth previously served as the company’s Senior Vice President of Loan Operations.

SANTOS

l International Document Services Inc. (IDS) has announced the promotion of former Manager of Development Beckie Santos to the newly created position of Manager of New Product Development.

MINTON

BURCH

l The Appraisal Institute has announced the resignation of Frederick H. Grubbe as its Chief Executive Officer after a decade on the job.

l LoanLogics has announced that Cary Burch has joined the company’s Board of Directors. A veteran of several national financial

l Silver Hill Funding LLC has announced the addition of Bob Worthington, Jennifer Sarafinski and Ricardo Vera as Regional Sales Representatives. l Freddie Mac has announced that Stacey Goodman will join the company as Executive Vice President and Chief Information Officer, where she will lead the Information Technology Division and provide corporatewide leadership for all the company’s technology activities. l Auction.com has announced the addition of Steve Price as Senior Vice President, Foreclosure to lead its integrated Third-Party Sales (TPS) program, which provides a marketing, educational, training and auction disposition service for sellers intending to sell properties in default at foreclosure sales. l Jefferson Sherman, MAI, AI-GRS of Highland Heights, continued on page 94

A Message From MAA Chairman Gene M. Lugat his month, the Mortgage Action Alliance (MAA) is gearing up for our 2017 Action Week, taking place from Oct. 2-6 this year. Action Week is a week-long event dedicated to helping real estate finance professionals learn how to become more engaged in political advocacy that supports our industry.

Why should you get involved? Because MAA is a non-partisan nationwide grassroots lobbying network of real estate finance industry professionals that allows our industry to speak to our elected officials with one voice.

Our goal this year is to get 1,000 MAA App downloads and surpass 20,000 MAA members. Last year, we had about 60 companies participate and signed up just over 2,400 new MAA members. We are hoping to surpass those numbers this year.

We’ll be recognizing all participants at MBA’s Annual Convention and will be spreading the word on social media.

If you aren’t an MAA member, you can join for free at MBA.org/JoinMAA. To download the App, visit MBA.org/MAAapp or search for “Mortgage Action Alliance” in 91 the App Store or Google Play.

Your participation makes a difference, and the MAA App couldn’t make taking action any easier. During Congress’ August Recess, more than 2,500 industry professionals contacted their elected officials, sending 6,500-plus letters to Congress about key issues, including GSE reform, transitional authority to originate mortgage loans for experienced MLOs transitioning between federally-insured depositories and nondepositories and across state lines, and reauthorizing the National Flood Insurance Program (NFIP).

A big thank you to the three companies with the most individuals taking action in August: New American Funding, with 894 employees taking action; FBC Mortgage, with 146 employees participating; and Union Home Mortgage, with 108 employees contacting their elected representatives.

The more MAA members we have, the stronger our voice will be as we play an active role in how laws and regulations that affect the industry and consumers are created and carried out.

Help us reach our goal by enrolling your company to participate and running a MAA membership campaign within your office.

For more information, visit MBA.org/ActionWeek.

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Gene M. Lugat is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. Gene is executive vice president, national industry and political relations for PrimeLending Inc.

n National Mortgage Professional Magazine n SEPTEMBER 2017

GRUBBE

l Informative Research has named Blair Biehle as its new Vice President of National Sales.

l Mid America Mortgage Inc. has announced that it has promoted former Chief Compliance Officer and Director of Correspondent Lending Kara Lamphere to the role of Chief Operating Officer (COO).

MBA’s Mortgage Action Alliance

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BIEHLE

l loanDepot has announced the appointment of Drew Collins as Senior Vice President, Pacific Division Manager, responsible for retail production in California, Nevada, Oregon, Washington, Idaho, Wyoming and Montana.

LAMPHERE

COLLINS

l Guild Mortgage has selected Gabe Minton as its first Executive Vice President of Information Technology.

Minton, who has more than 25 years’ experience in leadership roles with mortgage and technology companies, will report directly to Mary Ann McGarry, President and CEO of Guild Mortgage.

services and information technology companies, Burch will leverage his two decades of experience in the IT, legal and financial services industries to help LoanLogics expand its products and achieve longterm growth.

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The Compliance Knowledge Curve

By Kris Barros

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even though it seems like I was channeling Dr. Seuss in that summation, that is an unrealistic business approach to regulatory compliance, even in Whoville. But with so many counting on compliance staff to safeguard the companies’ interests by complying with consumer protection regulations, it takes a lot to keep up with regulatory issues and changes. I think that comes through in the many efforts to provide compliancerelated training and education.

In addition to staying current, in what has been an everchanging regulatory environment, it is necessary to convey knowledge in a timely and efficient manner, while directing and tailoring that learning towards different people working in different roles throughout the loan process. That can make compliance-related training and education efforts challenging, but it does not necessarily have to be that difficult.

To be successful, mortgage compliance efforts—including training—need to be dynamic, they need to collaborative and they need to be cultural. They need to be adaptable to provide compliant solutions when variables not contemplated in the regulations enter the equation.

You need to be able to solve for that consumer, in that instance, to ensure compliance and the consumer’s satisfaction. That requires an integration of policies and procedures, technology, measures of effectiveness, and the people involved throughout the loan process. Compliance education and implementation is

not a simple task by any means.

The greatest success comes from collaboration. That collaboration can be lost in some efforts to develop training and a knowledge base.

I think one of the keys to this collaboration needs to be the recognition that there are valuable contributions that can be made from everyone in the loan process. Every individual involved in the mortgage process brings a unique perspective.

Everyone has a particular expertise that they need to bring into the equation. You can’t ignore the diversity of perspectives or the value of that diversity when considering possibilities in building a compliance program or even developing training around compliance. Complex and challenging problems are best addressed by groups of people with different levels of knowledge and experience. High levels of knowledge and expertise relating to the topic of compliance that compliance professionals bring are useful, but can’t be the only input into the compliance solution.

When it comes to compliance and developing processes and trainings, the most often overlooked perspective may be sales. While it may seem like an unholy alliance between sometimes opposing forces, you need to remember the end goal for everyone, including compliance people, is to close good loans with a positive experience for the consumer. No one is better suited than the loan originator to help craft that result.

Kris Barros is the Regulatory Audit Manager at Embrace Home Loans. With more than 15 years of experience in compliance, Barros has expertise in analysis of federal and state law as well as the implications of regulatory change.

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situation to meet regulatory requirements and you do not delve too far into compliance or into sales—and if you consider those “certain known factors” to be law, regulation, and regulator guidance and let those be constants in your compliance efforts—it may not matter if you never find the solution.

Okay, now I am getting a little delusional. It absolutely matters if you never find the compliance solution. That is clearly not an option. Compliance is a mandate from federal and state law and regulation. It is not a choice. It won’t happen by accident. And being a little bit compliant is not like being compliant.

Let’s go back to the part about defining “mortgage compliance” as the efforts we make in whatever situation to meet regulatory requirements, where we don’t delve too far into different perspectives but put all the efforts into the consumer and protection of that consumer. That is your constant, your certain known factor, for solving just about everything mortgage compliance-related. The problem is that the regulations and the regulators can’t possibly contemplate every variable that the mortgage compliance equation generates. That is where it is on us, as mortgage professionals, compliance and sales, to share knowledge and experiences and learn to craft compliance solutions. It is the compliance knowledge curve that can only benefit the lender and the consumer.

I am not going to deny that from certain perspectives it would seem like there are some compliance people who would seemingly be perfectly content if mortgage sales people didn’t place an ad, answer the phone, take an app, or make a loan! And

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ccording to Nikola Tesla, “Life is and will ever remain an equation incapable of solution, but it contains certain known factors.”

I don’t know if I agree or disagree with Tesla’s assertion that life is an equation incapable of solution. I think Tesla’s “certain known factors” depend heavily on the perspective of the individual. The “certainties” of the scientist are likely to be very different from the “certainties” of the theologian. But if you define “life” as the time we have to share with others in whatever situation and you do not delve too far into science or into religion, and if you consider those “certain known factors” to be understanding, compassion, and humility and let those be constants in life, it may not matter if you never find the solution. You will likely have a pretty good life.

Flip it around a little and change “life” to “mortgage compliance” and you may have a statement that would likely sum up the perception of many in the industry trying to gain knowledge and understanding of compliance. “Mortgage compliance is and will ever remain an equation incapable of solution, but it contains certain known factors.”

Again, I don’t know if I agree or disagree with the assertion that mortgage compliance is an equation incapable of solution. I think the “certain known factors” depend heavily on the perspective of the individual. The “certainties” of the compliance officer are likely to be very different from the “certainties” of the loan originator. But if you define “mortgage compliance” as the efforts we make in whatever

heard on the street

The NAPMW Report

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BY CATHY KANTROWITZ

NAPMW Welcomes New Locals With a Strong Start to the Fiscal Year s we continue to champion the advancement of women in mortgage related professions, the National Association of Professional Mortgage Women (NAPMW) is pleased to welcome two new Local Associations in Charlotte and the Gulf Coast.

These new Associations were formed by Associate Members, that is, members of NAPMW who were in areas that do not have a Local nearby. They will provide mortgage professionals in Charlotte and the Gulf Coast with business, personal, and leadership development within the mortgage industry through education and networking opportunities.

What is more, another new Local in Washington State is in the beginning stages of formation and on track to be the third new Local Association for NAPMW this year. These new Locals have been formed within the first few months of the fiscal year, bringing together current and new members, and creating new opportunities for all mortgage industry professionals.

We are pleased to announce the success of our new Locals and look forward to welcoming new members and leaders to grow professionally with NAPMW.

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Cathy Kantrowitz is President of the National Association of Professional Mortgage Women (NAPMW) and Mortgage Operations Manager at Quorum Federal Credit Union. She may be reached by phone at (914) 641-3842 or e-mail President@NAPMW.org.

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Ohio has been elected 2018 Vice President of the Appraisal Institute by its Board of Directors in Chicago. Sherman’s oneyear term at the Appraisal Institute will begin Jan. 1, followed by one year each as President-Elect, President and Immediate Past President.

FormFree has named Patty Ramirez Pinckney as Senior Director of Marketing, where she will drive the planning and implementation of FormFree’s marketing campaigns, govern its strategic positioning within the mortgage industry and manage the firm’s brand.

Altisource Portfolio Solutions has announced the appointment of Marcello Mastioni to the newly created position of President, Real Estate Marketplace, joining Altisource’s executive team in the company’s Luxembourg headquarters.

Broker Agent 360 has announced that Steve Setlock has joined the company as Vice President, overseeing business development and sales.

IndiSoft has named Camillo Melchiorre as President, where he will focus on the firm’s sales and marketing efforts.

Naming Melchiorre will allow Sanjeev Dahiwadkar, who previously held both the roles of President and CEO, to concentrate on IndiSoft’s strategic direction as CEO. LenderLive Network LLC, a business unit of LenderLive Holdings Inc., has announced that Sherry Valladares has joined the firm as Correspondent Lending Regional Account Manager.

FirstClose has announced the addition of John Park as Director of Business Development, where he will be responsible for driving adoption, client communication and product development.

Churchill Mortgage has announced the addition of 16 new employees to its branches in Arizona, Colorado, Michigan, Tennessee, Texas and

continued from page 91

Virginia. In Brentwood, Tenn., Churchill has added eight employees, including Bethany Collins, who brings more than a decade of industry experience to her new role as Compliance and Operations Manager. Evan Lundell and Samantha Hau join the branch as a Software Developer and Project Manager, respectively, along with Sarah Ciemniecki as an Accountant; Traci Whitley as Marketing Project Manager; Matthew Buckles as a Home Loan Specialist; Leslie Head as a Loan Partner; and Hannah Tilton as a Loan Officer in training.

In Colorado Springs, Colo., Lena Martinez joins Churchill as a Senior Loan Processor with 20 years of experience and Brooke Cassel as an Administrative Assistant. Rosemary Roberts joins Churchill’s Grand Rapids, Mich. branch as a Home Loan Assistant, as well as Ed Scruggs and Wendy Shwartz as a Home Loan Specialist and an Administrative Assistant, respectively. In Phoenix, Kristine Zimny joins the lender’s team as a Home Loan Specialist and the lender’s Dallas branch welcomes 10-year industry veteran Thomas Walden as a Home Loan Specialist. The lender also welcomes Lee Elliot as a Disclosure Specialist to its Herndon, Va. branch.

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

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

new to market

continued from page 18

Wipro Gallagher Solutions Releases NetOxygen Upgrade and Announces HMDA Compliance Update

Wipro Gallagher Solutions has announced the release of the latest version of its Loan Origination System (LOS), NetOxygen v5.0, providing loan officers, processors and administrators with more simplified innovation and configuration tools to meet lenders’ evolving needs and support next-gen lender transformation.

NetOxygen v5.0 streamlines access to its Application Programming Interfaces (APIs) through the development of a Loan Gateway Service. The Loan Gateway Service enables direct data sharing between third-party partners and NetOxygen, accelerating the development and deployment of future-ready lending models.

NetOxygen v5.0 also accelerates and simplifies configuration through a suite of easy-to-use self-service tools available to business users. The business tools enable lenders to address necessary and urgent business changes such as fee schemes, conditions, products and user maintenance without intervention from the IT team.

“The NetOxygen Loan Origination System has always offered innovation through unmatched flexibility and configurability, and we consider this flexibility to be of even greater importance to lenders in today’s highly competitive market,” said Scott Dunn, Head of Product Management and Compliance, Wipro Gallagher Solutions, Wipro Limited. “Only now, NetOxygen offers the same level of innovation with greater simplification to minimize complexity, speed up the deployment of new features, and fuel future growth.”

NetOxygen v5.0 also enhances workflow logic to improve transparency around performance and increase efficiencies within a lending operation. Clients can now use custom and granular workflow filters within NetOxygen to create more sophisticated business processes and assign work to the right business user or

group based on specialization.

The same logic enhances the NetOxygen Compensation Manager giving lenders the ability to track compensation based on specific loan characteristics and parameters.

Wipro Gallagher Solutions has also announced the release of its enhanced Home Mortgage Disclosure Act (HMDA) functionality in NetOxygen, which helps lenders comply with current and new collection and reporting requirements, prescribed by the Consumer Financial Protection Bureau (CFPB) under the HMDA Act taking effect from Jan. 1, 2018.

WGS enables its customers to achieve full compliance with regulations by automating the completion of their Loan Application Register (LAR), based on data collected throughout the loan lifecycle.

Wipro Gallagher Solutions’ NetOxygen HMDA module helps lenders ensure data integrity by automatically validating all necessary demographic information prior to CFPB submission.

“By incorporating thought leadership and automation into our compliance solutions, we provide a valuable RoE (Return on Experience) for our customers,” said Scott Dunn, Head of Product Management and Strategy, Compliance for Wipro Gallagher Solutions. “We have updated our technologies and processes to ensure compliance with the upcoming reporting amendments so that our customers can confidently start collecting data and demographic information via our NetOxygen platform in advance of the rule mandate.”

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:

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here were blue skies outside on this beautiful September day as she sat behind closed doors exchanging niceties with her fellow associates as she probably secretly wished to speed up the time in this training course so she could get back to work. She had so much to do and she knew her last appointment of the day was with a couple relocating. They had contacted her regarding one of her listings and seemed so anxious. She built a digital relationship with them and sent listings back and forth to both the husband and the wife. They had been texting and e-mailing.

She felt as if she knew them although she’d meet them for the first time at her last appointment of the day. She put it last, probably because it was her listing and close to her home.

She knew the area so well. In fact, her Pastor lived on the same street.

This was the story I heard being told by Carl Carter Jr., a real estate agent and speaker, as he reflected on an appointment

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his mother, Beverly Carter, a seasoned real estate agent had in September 2014. He had photos of the house she showed that day displayed on the big screens in front of the room. He told the attendees of this presentation, this particular listing his mother was showing was vacant. When his mother pulled up to show the house, she positioned her car on the outside, not to get blocked in and left her purse locked in the car. She held her cellphone in her hand and when she noticed the wife was not accompanying her prospective new client, she questioned it but trusted everything was okay when the wife was on the phone asking questions about the house. After all, this was a couple she had been communicating with prior to this appointment; therefore there was a sense of familiarity.

As they proceeded into the house, she took photos of the kitchen and other rooms sharing them via text with the wife. They continued to communicate with each other and as she proceeded to take more photos, she turned to the husband standing next to

Septem National Agent

BY VICTORIA RI her and immediately discovered in what could only have been a moment of terror; he was holding duct tape and a taser gun in his hands. He told her she was about to have a very bad day! These chilling words spoken by Carl, her son, who courageously tours the country telling his mother’s story in an effort to save others from the horrific experience his mother endured, brought tears to nearly everyone’s eyes. The story continued and Carl said, “After a few days missing, Beverly’s body was found in a shallow grave.”

But, the story doesn’t end there. After much grief and having to deal with the trial of his mother’s attackers, Carl Carter Jr., founded the Beverly Carter Foundation (BCF). BCF is a notfor-profit organization with a mission of bringing awareness to agent safety. Through the

support of generous sponsors within the real estate industry, training material is offered at little or no cost for all real estate agents. Real estate agents are exposed to violent crimes on a regular basis.

Between the years 2008-2015, more than 200 real estate agents were victims of homicide. This is a serious issue in the industry. It is not uncommon for a real estate agent to bring strangers into vacant houses behind locked doors in secluded areas. In fact, it is their job. Violence can be quite a problem for a real estate agent entering a location alone with someone pretending to be a homebuyer. Social media platforms can be used as a tool for criminals to choose their victims. Agents use social media to post pictures, announce listings and open houses where

mber Is nt Safety Month

IA RIVADENEIRA they may be alone and/or post other personal information that may put them in danger.

There are many things we learned from the Beverly Carter murder. First and foremost, it is never the fault of the victim, Beverly did everything she was taught to do. She parked on the outside of the driveway, she told everyone where she would be and who she was meeting, she held her phone in her hand, locked her purse in her car and had her prospective buyer walk in front of her as well as get his wife on the phone to verify they were indeed a couple interested in the property being shown.

And, she would have had them pre-approved for a mortgage, but they told her it was an all-cash deal, therefore no need for a mortgage or pre-approval. There was information found out

afterwards such as; the texts she received were from a texting app and the phone number wasn’t a real mobile number, nor were the names given to her. A couple posing as buyers targeted her with a criminal plan. She had no way of verifying this information at the time and she had a false sense of security following instructions most real estate agents were taught.

Through the Beverly Carter Foundation, real estate agents can learn about improved training, tips, tools and technology now available and it’s offered for free or at little cost because every agent deserves to return home safely after doing their job. Agent safety should begin with policy put forth at the brokerage level. Real estate agents aware of the advanced training and technology available

today may prevent violent crimes when meeting prospective buyers and sellers. In addition, there is also information available to keep residents of a home for sale safe during and after the showing process. In a Google study, 70 percent of home sellers surveyed believed their listing agent had a responsibility to verify the identity of those previewing their home.

And, in the National Association of Realtors (NAR) Safety Report, 39 percent of real estate agents reported feeling their personal safety or personal information was at risk. These are just two

statistics of many that can be changed through awareness and education.

September is “National Agent Safety Month” and the Beverly Carter Foundation is currently releasing a series of safety videos to bring information, training, tools, technology and tips for all real estate agents and affiliates. For more information on how to access this information, become a sponsor supporting agent safety or to host an event showing support for real estate agent safety, please visit BeverlyCarterFoundation.org.

Victoria Rivadeneira is currently a Business Development Officer for Stewart Title. She is also the Creator, President, Producer and Main Host of Real Estate Talk, a one-hour radio show from NY’s iHeart Studios which airs on AM710 WOR, live streams on the Web, live video streams on three social media platforms, and is carried on iTunes, Google Play, Spreaker and several other podcasts. Victoria is also a respected corporate consultant, published author, professional speaker & NYS licensed real estate broker, certified real estate instructor and the Executive Officer for the BeverlyCarterFoundation.org. She may be reached by e-mail at Victoriariva@gmail.com.

TRID Rule Updates and the

“Black Hole” Conundrum

By Jonathan Foxx, Ph.D., MBA

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n Aug. 11, 2017, the Consumer Financial Protection Bureau (“Bureau”) issued a Final Rule (2017 TILA-RESPA Rule or 2017 Rule, hereinafter “Rule”), amending and clarifying certain mortgage disclosure provisions implemented in Regulation Z.1 The Rule modifies the Federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) that are implemented in Regulation Z. It memorializes the Bureau’s informal guidance on various issues and makes additional

O

clarifications and technical amendments.

Furthermore, the Rule also creates tolerances for the total of payments, adjusts a partial exemption mainly affecting housing finance agencies and nonprofits, extends coverage of the TILA-RESPA Integrated Disclosures (“TRID Disclosures”) requirements to all cooperative units, and provides guidance on sharing the TRID Disclosures with various parties involved in the mortgage origination process The following outline closely follows the Executive Summary provided by the Bureau, which was issued on July 7, 2017.2 The Rule is effective 60 days after its publication in the Federal Register.

Compliance with the Rule is optional, not mandatory, on the

effective date of Oct. 10, 2017.

It is worth noting that the Rule includes this optional compliance period, which begins on the Rule’s effective date. Beginning on the Rule’s effective date and for transactions for which a creditor or mortgage broker receives an application prior to Oct. 1, 2018, a person can comply with the Rule but is not required to do so. Generally, during this optional compliance period, a person may comply with the changes set forth in the Rule all at one time or phase in the changes over time (even within the course of a transaction).

Oct. 1, 2018 is the mandatory compliance effective date of the Rule for transactions for which a creditor or mortgage broker receives an application on or

after Oct. 1, 2018. That said, the Escrow Closing Notice and Partial Payment Disclosure requirements apply starting Oct. 1, 2018, without regard to when the creditor or mortgage broker receives the application.

Caution Exercise caution during an optional implementation of the Rule. Notwithstanding this flexibility, a financial institution cannot phase in the Rule in a way that would violate provisions of Regulation Z that are not being changed. Additionally, if a creditor or mortgage broker receives an application prior to Oct. 1, 2018, optional compliance continues to apply to that transaction after Oct. 1, 2018 (except as noted regarding

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Concurrently with the issuance of the Rule, the Bureau issued a Notice of Proposed Rule-Making (NPRM) regarding when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance.4 Affectionately known as the “black hole”–referring to

situations in which a lender may not be able to use a Closing Disclosure to reset fee tolerances–the Rule does not make changes or clarifications related to this issue.

So, although the Rule addresses and clarifies certain topics, it is notable that the Rule does not actually deal with the so-called “black hole” issue.

Even if the nomenclature is controversial, the fact is a situation can happen where a Closing Disclosure may (or may not) be used to determine whether certain estimated charges were disclosed in “good faith.” To put a finer point on it, lenders want clarity on this issue, but instead the Bureau simultaneously published the separate proposed rule, the

NPRM, which addresses “when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance.” So, this concern is still unresolved. Comments on the NPRM are due 60 days after the NPRM it was published in the Federal Register.5 The Rule consists of 560 pages.6 The NPRM is 41 pages.

Condensing the updates into a few high-level points is, to put it modestly, an inspired endeavor.

Nevertheless, in the following outline, I hope to provide a general, section by section, synopsis of the Rule’s salient requirements and features.

Please pay attention to my observations, marked as a “Note”

to certain items, so as to tease out the regulatory nuances involved.

Partial Payment Disclosures and Escrow Closing Notices Regulation Z requires a creditor or servicer to provide a consumer with an escrow closing notice before an escrow account subject to 12 CFR 1026.20(e) is canceled.7 It also requires certain persons who become the owner of an existing closed-end consumer mortgage loan (other than a reverse mortgage) to notify the consumer of the partial payment policy applicable to the mortgage loan.8 These obligations generally continued on page 100

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the Escrow Closing Notice and Partial Payment Disclosure). For example, during the optional compliance period, a creditor cannot provide a Good Faith Estimate followed by a Closing Disclosure for a transaction secured by a cooperative unit that is not considered to be real property under applicable state law.3

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arise after consummation, and these notices are sometimes referred to as postconsummation notices.

The Rule addresses the applicability of these postconsummation notice requirements.

Specifically, it provides that after Oct. 1, 2018, the applicability of these requirements will not be dependent on when the application for the mortgage loan was received. Until the Rule’s mandatory compliance date on Oct. 1, 2018, a creditor or servicer can either provide the escrow closing notice for covered escrow accounts established in connection with a mortgage loan for which an application was received on or after Oct. 3, 2015 or provide the notice in connection with all covered escrow accounts without regard to when the mortgage loan application was received.

Similarly, a covered financial institution has the option to provide the partial payment disclosure for closed-end consumer mortgage loans for which an application was received on or after Oct. 3, 2015 or to provide the disclosure for all such loans without regard to when the application was received. But, starting Oct. 1, 2018, the escrow closing notice and partial payment disclosure requirements apply without regard to when the application for the covered loan was received.

Loans to Certain Trusts The Rule revises the commentary to clarify that, for purposes of Regulation Z’s definition of “consumer,” credit extended to certain trusts established for tax or estate planning purposes is credit extended to a natural person. The preamble to the Rule discusses providing the Disclosures in these situations.

Loans Secured by Cooperatives Currently, Regulation Z requires a creditor to provide the TRID Disclosures for a loan secured by a cooperative unit if cooperative units are classified as real property under applicable state law.

NOTE: A creditor is not required to provide the TRID Disclosures for such loans if cooperative units are classified as personal property under applicable state law.

The Rule creates a uniform mandate regarding such loans and requires creditors to provide TRID Disclosures for a closedend consumer loan (other than a reverse mortgage) secured by a cooperative unit regardless of whether state law classifies cooperative units as real property.

The Rule also revises the requirements regarding the disclosures that must be provided to meet a criterion for the partial exemption.

Particularly, it allows the creditor to provide the TRID Disclosures as an alternative to providing a disclosure of the cost of credit under 12 CFR 1026.18.

Disclosures must comply with all Regulation Z requirements pertaining to those disclosures.

NOTE: Assuming the other criteria for the partial exemption are satisfied, a creditor may provide either a compliant disclosure of the cost of credit under 12 CFR 1026.18 or a compliant Loan Estimate and Closing Disclosure, and does not need to provide the special information booklet, Good Faith Estimate, or HUD-1 settlement statement.

Partial Exemption for Certain Housing Assistance Loans Regulation Z provides an exemption from the TRID disclosure requirements for lowcost, non-interest bearing, subordinate lien housing assistance loans that satisfy six criteria. Similarly, Regulation X provides an exemption from certain RESPA disclosure requirements for loans that satisfy the six criteria set forth in Regulation Z. The Rule clarifies and changes two of the six criteria.

The Rule revises the costs that may be payable by the consumer without loss of eligibility for the partial exemption.

Specifically, it provides that: 1. Transfer taxes, in addition to recording, application, and housing counseling fees, may be payable by the consumer at consummation without losing eligibility for the partial exemption; and 2. Recording fees and transfer taxes are excluded from the one-percent cap on total costs payable by the consumer at consummation.

Construction Loans The Rule amends and clarifies several disclosure provisions related to construction loans.

Among other things, the Rule does the following with respect to construction loans: 1. Provides that when disclosing a construction-permanent loan as two separate transactions, a creditor must provide a Loan Estimate for a particular phase within three business days of receiving an application for that phase (i.e., the creditor must provide the Loan Estimate for the construction phase within three business days of receiving the application for the construction phase and the Loan Estimate for the permanent phase within three business days of receiving the application for the permanent phase).

NOTE: If a creditor receives a single application for both phases but discloses them separately, it provides a Loan Estimate for the construction phase and a Loan Estimate for permanent phase within three business days of receipt of such application.

2. Provides that, if a creditor discloses a constructionpermanent loan as two separate transactions, the creditor must allocate to the construction phase amounts for finance charges and points and fees that would not be imposed but for the construction financing, and that other amounts for finance charges and points and fees must be allocated to the permanent phase.9 NOTE: Fees and charges that are not finance charges or points and fees may be allocated between the construction phase and permanent phase in any manner that the creditor chooses.

3. Provides that construction inspection and handling charges collected before or at consummation are disclosed in the Loan Costs table and that such costs collected after consummation are disclosed in a separate addendum.

NOTE: The Rule includes additional information regarding disclosure of these charges and the applicability of the good faith standard depending on when the charges are collected.

4. Provides that, in transactions without a seller, the appraised value or estimated value

disclosed on the Loan Estimate must be based on the best information reasonably available and may, at the creditor’s option, include the estimated value of the anticipated improvements to the property.

NOTE: The value disclosed on the Closing Disclosure in transactions without a seller, must include the value of the property used to determine the approval of the loan, including the value of improvements to be made on the property if the improvements’ value was used to approve the loan.

5. Provides that, if a construction-permanent loan is disclosed as a single transaction, the Loan Term is the combined term of both phases (i.e., the construction phase of 12 months and permanent phase of 30 years is disclosed as 31 years).

NOTE: If a constructionpermanent loan is disclosed as two transactions, the Loan Term for the permanent phase begins on the date that interest for the permanent phase’s periodic payments begins to accrue.

6. Provides how to complete the Product disclosure as well as disclosure of interest-only features and balloon payments for constructiononly loans and constructionpermanent loans.

7. Provides that, if the loan contract indicates the creditor may modify the interest rate when the construction phase converts to the permanent phase and such modifications may increase the payment, the creditor provides the adjustable rate mortgage (ARM) disclosures.10 NOTE: if the loan is secured by the consumer’s principal residence, but is not required to provide the initial ARM disclosures,11 for the permanent phase of a constructionpermanent loan.

8. Addresses certain interest rate disclosures for construction-only and construction- permanent loans, including in situations where certain interest rates are unknown.

9. Addresses disclosure of the answer to “Can this amount increase after closing?” for construction loans and construction-permanent loans

where the amounts and timing of advances are unknown.12 10. Addresses disclosure of the Projected Payments table, including ranges of payments, for constructiononly loans and constructionpermanent loans.

11. Addresses disclosure of mortgage insurance and escrow payments in the Projected Payments table when only the permanent phase of a constructionpermanent loan requires escrow and the loan is disclosed as a single transaction.

Good Faith and Revised Disclosures The Rule amends and clarifies the application of the good faith standard and related tolerances for certain TRID Disclosures.14 It also amends and clarifies when revised Loan Estimates or Closing Disclosures are permitted or required.

Among other things, it provides that: 1. If a creditor fails to disclose a specific settlement service on the written list of providers or fails to provide the list, the 10 percent aggregate standard for determining good faith continues to apply to a required third-party, nonaffiliate settlement service charge that otherwise complies with 12 CFR 1026.19(e)(3)(ii).

NOTE: “Good faith” for such charges is determined under the “zero tolerance” standard if the creditor fails to permit the consumer to shop. Whether the continued on page 102

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Simultaneous Subordinate Lien Loans The Rule permits creditors to disclose simultaneous subordinate lien loans used to finance home purchases on alternative disclosures if the entirety of the seller’s transaction is disclosed on the Closing Disclosure for the first-lien mortgage loan.13 NOTE: Example: the creditor may leave the seller information, including the itemization of amounts due to seller, blank or may use the optional alternative tables.

Additionally, in a purchase transaction that involves simultaneous subordinate financing, a settlement agent may provide the seller with only the seller’s Closing Disclosure for the first-lien transaction, if the first lien Closing Disclosure discloses the entirety of the seller’s transaction. Alternatively, the settlement agent may provide the seller with the seller’s Closing Disclosures for both the

Tolerances for Total of Payments Disclosure The Rule includes tolerances for the total of payments disclosure, including tolerances that apply for purposes of rescission. The tolerances for the total of payments disclosure mirror the tolerances applicable to the finance charge.

NOTE: Example: The Rule generally provides that the total of payments disclosure is considered accurate if it is overstated, or if it is understated by no more than $100.

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12. Provides that construction costs (i.e., the costs of the improvements) are factored into the Funds for Borrower calculation on the Loan Estimate or, if applicable, disclosed in the optional alternative Calculating Cash to Close table.

NOTE: On the Closing Disclosure, construction costs are disclosed in the Summaries of Transactions table and factored into the Funds for Borrower calculation or, if applicable, disclosed in the alternative Calculating Cash to Close table. The Rule also addresses situations where a creditor places a portion of the proceeds in a reserve or other account at consummation.

first-lien and simultaneous subordinate financing transactions.

NOTE: Although the TRID Disclosures for a purchase money subordinate lien loan may omit seller information or use the alternative tables, the Purpose of such loan is disclosed as “Purchase” as long as the loan is secured by the purchased property.

The Rule explicitly provides that the proceeds from a simultaneous subordinate lien loan must be included in the first lien mortgage loan’s Loan Estimate and Closing Disclosure.

It also clarifies how the proceeds are disclosed in the TRID Disclosures for the first-lien loan as well as how the proceeds may be disclosed in the TRID Disclosures for the subordinate lien mortgage loan itself.

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creditor permits the consumer to shop is determined based on all the relevant facts and circumstances. The preamble to the Rule also notes that a creditor is not prohibited from issuing a revised written list of service providers for informational purposes.

2. The best information available standard applies to bona fide charges for third-party services if a consumer is permitted to shop for the service, as set forth in the Rule, and selects a provider not listed on the written list of settlement service providers provided to the consumer.

NOTE: This standard applies even if the charge is paid to the creditorâ&#x20AC;&#x2122;s affiliate.

3. A creditor can provide a revised Loan Estimate for informational purposes or, if applicable, to reset tolerances.15 In either situation, the Loan Estimate must be based on the best information reasonably available to the creditor.

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4. A creditor may not provide a revised Loan Estimate after it issues a Closing Disclosure even if the interest rate is locked on or after the date the Closing Disclosure is provided to the consumer.

NOTE: If the rate is locked or if the rate changes after a Closing Disclosure is provided to the consumer, the creditor must provide a corrected Closing Disclosure at or before consummation to reflect the changes. If the change triggers a new three-day review, the creditor must provide the corrected Closing Disclosure at least three business days before consummation.

5. Voluntarily extending the expiration date of a Loan Estimate, either orally or in writing, allows the consumer a longer period to indicate an intent to proceed.

NOTE: If the consumer indicates an intent to proceed within the extended period, the creditor must use the charges disclosed in the Loan Estimate when determining good faith and tolerances, unless Regulation Z otherwise allows the creditor to reset tolerances.

6. If a revised Loan Estimate is

issued after the consumer indicates an intent to proceed, the expiration date and time for the disclosed costs are left blank on the revised Loan Estimate.

7. A post-consummation corrected Closing Disclosure is not required if the only changes that would be required to be disclosed in the corrected disclosure are changes to per-diem interest and any disclosures affected by the change in per-diem interest.

8. The creditor has options for disclosing a refund for a tolerance violation. The Rule also provides details for proper disclosure of principal reductions.

Decimal Places and Rounding The Rule amends and clarifies the disclosure requirements related to decimal places and rounding.

For example, on the Loan Estimate, per-diem interest amounts disclosed in Prepaids and the monthly amounts disclosed in the Initial Escrow Payment at Closing are not rounded to the nearest dollar.

NOTE: Percentage amounts required to be disclosed in the Loan Terms table, in the Adjustable Interest Rate table, in the Adjustable Payments table, for the Total Interest Percentage, and for Points in Origination Charges are disclosed by rounding the exact amount to three decimal places. Any zeroes to the right of the decimal point are not included in the disclosure (i.e., one percent, not 1.000 percent).

Calculating Cash to Close The Rule amends and clarifies various calculations used to complete the Calculating Cash to Close table.

Among other things, it:

the consumer is assuming or subject to which the consumer is taking title to the Property.

NOTE: The amounts for loans that the consumer is assuming or subject to which the consumer is taking title are amounts that will be disclosed on the Closing Disclosure in the Paid Already by or on Behalf of Borrower at Closing portion of the summary of the borrowerâ&#x20AC;&#x2122;s transaction.

3. Provides that, in other purchase transactions, such as cash-back purchase transactions, simultaneous subordinate financing purchase transactions, and construction transactions, the amounts disclosed as the Down Payment/Funds from Borrower and Funds for Borrower are determined by subtracting the sum of the loan amount and amounts for loans that the consumer is assuming or subject to which the consumer is taking title to the Property from the total amount of all existing debt being satisfied in the transaction.

4. Provides details regarding when the TRID Disclosures should include an amount for Down Payment/Funds from Borrower or Funds for Borrower.

5. Addresses the disclosure of Adjustments and Other Credits in the TRID Disclosures.

6. Provides that, on the Loan Estimate, specific seller credits may be disclosed as a lump sum in the Calculating Cash to Close table, or at the creditorâ&#x20AC;&#x2122;s option, may be disclosed by reducing the amount of the specific charge in the Loan Costs or Other Costs table.

9.

Provides options for disclosing the statement that the consumer should see details regarding seller credits if there is a difference between the amount of seller credits disclosed on the Loan Estimate and those disclosed on the Closing Disclosure and the difference is not due to rounding.

10. Provides details regarding which amounts are included in the Adjustments and Other Credits section to prevent amounts from being counted twice in the Calculating Cash to Close table.

Other Disclosures in Loan Estimates and Written Lists of Providers The Rule amends and clarifies several requirements related to the Loan Estimate or written list of settlement service providers.

Among other things, it provides that: 1. A creditor must identify the settlement services it requires the consumer to obtain but for which the creditor permits a consumer to shop. The creditor must provide sufficient information to allow the consumer to contact providers for the settlement services it requires but for which it permits a consumer to shop.

NOTE: The identified providers must correspond to the settlement services for which the consumer may shop.

2. Although a creditor is not required to use the model form H-27 (in appendix H of Regulation Z) for the written list of service providers, the proper use of the model form (including any permitted changes) provides a safe harbor.

1. Provides that the loan amount used to calculate the Closing Costs Financed is the face amount of the note.

7. Provides that a creditor uses the most recent Loan Estimate provided to the consumer when completing the Loan Estimate column of the Calculating Cash to Close table on the Closing Disclosure.

3. If there is no seller and the creditor has performed its own estimate of the property value by the time the disclosure is provided to the consumer, the creditor must disclose its own estimate rather than disclose an estimate provided by the consumer.

2. Provides that, in certain purchase transactions, the amount disclosed as the Down Payment/Funds from Borrower is the difference between the sales price and the sum of the loan amount and amounts for loans that

8. Addresses calculation of the Closing Costs Financed on the Closing Disclosure, including for simultaneous subordinate lien loans, construction loans, and construction-permanent loans.

4. Payoffs of existing liens and unsecured debts are included in the Payoffs and Payments amount or factored into the Funds for Borrower or Adjustments and Other Credits amount in the Calculating Cash to Close table.

5. The Loan Amount disclosed in the Loan Estimate is the face amount of the note.

6. If multiple changes to periodic principal and interest payments may occur in a single year, the creditor combines the changes and discloses them as a single range of payments.

7. If accurate, a creditor can indicate that a portion of taxes, insurance and assessments will be paid with escrow funds.

8. Consistent with the terms of the legal obligation between the creditor and consumer, both specific and general lender credits are included in the disclosure labeled “Lender Credits” on the Loan Estimate.

escrow account disclosures.16 6. Provides that a creditor may include ongoing payments for mortgage insurance in certain escrow account disclosures.17 7. Provides that a creditor may use an addendum if additional lines are needed to complete the escrow account disclosures.18 Sharing Disclosures With Various Parties During the Origination Process The Rule clarifies that a creditor may provide separate disclosure

forms to a consumer and seller if state law prohibits sharing information in the disclosure form as well as in any other situation where the creditor chooses to provide separate disclosures.

The Rule also clarifies the three methods that a creditor may use to make modifications to the Closing Disclosure, in order to separate consumer and seller information.

A creditor may: 1. Leave certain disclosures blank on the form provided to the consumer or seller

(as applicable); 2. Omit a table or label, as applicable, for the form provided to the consumer or seller (as applicable); or 3. Assist the settlement agent in providing (or provide when acting as a settlement agent) a modified version of the Closing Disclosure form to the seller.

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9. The Total Interest Percentage (“TIP”) includes prepaid interest that the consumer will pay but does not include prepaid interest that someone other than the consumer will pay.

NOTE: Prepaid interest that is disclosed as a negative number must be included as a negative value when calculating the TIP. 103

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Other Disclosures in Closing Disclosures The Rule amends and clarifies certain disclosure requirements relating to the Closing Disclosure.

Among other things, it does the following: 1. Provides details regarding the disbursement date to be used in the Closing Disclosure.

3. Addresses the itemization requirement for disclosure of taxes and other government fees.

4. Provides that the creditor should disclose “$0.00” (not “$0”) for prepaid interest if, based on the best information available, the creditor does not believe it will collect prepaid interest.

5. Provides that a creditor may use the 12-month period beginning with the initial payment (instead of consummation) for certain

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2. Provides that only the names and addresses of the persons to whom credit is offered or extended are disclosed at the top of the first page of the Closing Disclosure with the label “Borrower.”

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Technical Corrections and Clarifications In addition to the changes discussed above, the Rule makes technical corrections and minor changes and clarifications to wording throughout several provisions of Regulation Z. Information contained in this article is not intended to be and is not a source of legal advice.

The views expressed are those of the author and do not necessarily reflect the views or policies of Lenders Compliance Group, any governmental agency, business entity, organization, or institution.

No representation is given and no guaranty is offered with respect to the source, originality, accuracy, completeness, or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented herein.

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Footnotes 1—Amendments to Federal Mortgage Disclosure Requirements Under the Truth in Lending Act (Regulation Z), Bureau of Consumer Financial Protection, 12 CFR Part 1026, Federal Register, Vol. 82, No. 154, Aug. 11, 2017, Rules and Regulations.

2—Executive Summary of the 2017 TILA- RESPA Rule, Consumer Financial Protection Bureau, July 7, 2017.

3—The creditor would violate § 1026.38(i), which requires that information that was disclosed on the Loan Estimate be included in the Closing Disclosure.

4—Proposed Rule with Request for Public Comment, Amendments to Federal Mortgage Disclosure Requirements under the Truth in Lending Act (Regulation Z), 12 CFR Part 1026, Bureau of Consumer Financial Protection, Aug. 11, 2017.

5—Idem.

6—The Bureau will also update the TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide and the Guide

to the Loan Estimate and Closing Disclosure Forms.

7—Note, generally 12 CFR 1026.20(e) requires an escrow closing notice for an escrow account established in connection with a closed-end consumer mortgage loan secured by a first lien on real property or a dwelling (other than a reverse mortgage), unless the escrow account was established solely in connection with a consumer’s default or delinquency on the underlying loan or the underlying loan is terminated, such as by repayment.

8—See 12 CFR 1026.39(d).

Persons required to provide mortgage transfer notices when the ownership of a mortgage loan is being transferred must include in the notice information related to the partial payment policy that will apply to the mortgage loan.

9—See 12 CFR 1026.4 for a description of the finance charges and 12 CFR 1026.32(b)(1) for a description of points and fees.

10—Under 12 CFR 1026.20(c).

11—Under 12 CFR 1026.20(d).

12—Appendix D is used to calculate the schedule of payments.

13—The Rule renames the alternative disclosures for transactions without a seller as alternative disclosures for transactions without a seller and simultaneous subordinate financing. These disclosures are also referred to as “alternative disclosures or tables.”

14—Under 12 CFR 1026.19(e)(3).

15—Op. cit. 1, the Executive Summary states: “A creditor may, for example, reset tolerances if there is a changed circumstance under 12 CFR 1026.19(e)(3)(iv)(A) or (B), or if the consumer requests certain changes under 12 CFR 1026.19(e)(3)(iv)(C). The 2017 TILA-RESPA Rule also clarifies when estimated charges expire for purposes of good faith and determining if charges are within tolerance.”

16—Under 12 CFR 1026.38(l)(7).

17—Idem.

18—Op. cit. 12.

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

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House Price Index (HPI). On a year-over-year basis, house prices rose 6.6 percent from the second quarter of 2016. FHFA’s seasonally adjusted monthly index for June was up 0.1 percent from May. The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. FHFA has produced a video of highlights for this quarter.

“U.S. house prices rose in most states during the second quarter,” said FHFA Senior Economist William Doerner. “New home sales are climbing but, relative to the overall population, they still remain low from a historical perspective.

The tight inventory is a major explanation for why house prices have been increasing every quarter over the last six years.”

During the second quarter, home prices increased in 48 states and the District of Columbia on a year-over-year basis, with the greatest annual appreciation occurring in Washington (12.4 percent), Colorado (10.4 percent) and Idaho (10.3 percent). Among the major metro areas, Washington’s Seattle-BellevueEverett experienced the greatest annual prices increase with a 15.7 percent upward jolt, while Connecticut’s New Haven-Milford had the most anemic increase at a scant 0.1 percent.

Appraisal Groups Seek to Stop GSE Appraisal Waivers

A coalition of more than 30 national and regional appraisal trade groups are calling on Congress to ensure the Federal Housing Finance Agency (FHFA) will not allow Freddie Mac and Fannie Mae to issue appraisal waivers.

In a letter to the chairmen and ranking members of the Senate Banking, Housing and Urban Affairs Committee and the House Financial Services Committee, the appraisal groups expressed their concern over a recent announcement that the government-sponsored enterprises (GSEs) plan to stop requiring appraisals for first purchase loans and mortgage refinancing. The appraisal groups are seeking to prevent FHFA from allowing the

appraisal waivers to proceed until it can demonstrate that this new program is safe for both consumers and the GSEs, includes safeguards to prevent fraud, and is monitored by FHFA and tested with independent appraisals.

Among the organizations signing the letter were the American Society of Appraisers, American Society of Farm Managers and Rural Appraisers; Appraisal Institute, National Association of Appraisers and National Association of Independent Fee Appraisers.

National Median Rent Hits 2017 High

The national median rent reached $1,081 in September, its highest point of the year, according to new data from ABODO. Since January’s mark of $1,016, the national median rent has increased by 0.2 percent during the first nine months of 2017.

For the second consecutive month, Cleveland experienced the greatest month-over-month rent hike in the country, with median one-bedroom rents increasing by 12.8 percent, from $619 to $698. And also for the second month in a row, Glendale, Ariz., saw the greatest rent decrease, with a 9.5 percent drop on one-bedroom rents to $673.

As for the most expensive rents, San Francisco and New York were still the top two markets with the highest rental costs. The one-bedroom median rent in San Francisco was $3,240, up $30 from August’s report, while New York saw rents drop $57 to a still-high median rent of $2,850.

A recent report by Zillow found that homelessness rates in New York City, Los Angeles, Washington, D.C. and Seattle increased by at least four percent between 2011 and 2016. The study also found that a five percent increase in New York City’s rents would force almost 3,000 more people into homelessness, while rent hikes in Los Angeles would swell that city’s homeless population by nearly 2,000 and Seattle’s by nearly 260.

Zillow Panel Predicts a Recession by 2020

CMBS Loan Closings Double in Q2

FHFA Releases GSE Stress Test Results

The Federal Housing Finance Agency (FHFA) conducted its annual stress test of Fannie Mae and Freddie Mac, and the results were not exactly encouraging.

As part of its stress test, the FHFA envisioned a worst-case economic scenario encompassing a global recession lasting from Dec. 31, 2016, to March 31, 2019. In this scenario, the FHFA imagined a world with “large reductions in asset prices, significant widening of corporate bond spreads, and strained market liquidity conditions.”

The stress test also pretended a real estate market where “home prices decline by approximately 25 percent, and commercial real estate prices fall by 35 percent through the first quarter of 2019.”

The government-sponsored enterprises (GSEs) did not fare well in such a situation, requiring as much as $100 billion allocated through an incremental Treasury draw to keep them operational. Neither the FHFA nor the GSEs offered any public comment on the stress test results, with the FHFA merely acknowledging that the Dodd-Frank Act requires this hypothetical annual exercise.

Builder Confidence in 55+ Housing Strengthens

The National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI) recorded a reading of 66 for the second quarter, up 11 points from the previous quarter.

All three components of the 55+ single-family HMI posted increases from the previous quarter: Expected sales for the next six months rose by 12 points to 80, an index high, while present sales saw an eight-point upswing to 70 and traffic of prospective buyers jumped 19 points to 53, also an index high. The 55+ multifamily condo HMI was up seven points to 53, with all three components posting gains in the 105 second quarter: Present sales increased six points to 56, an index high, and expected sales for the next six months and traffic of prospective buyers both rose eight points to 55 and 45, respectively.

“Demand for 55+ housing continues to grow, and this quarter’s index is a reflection of that,” said Dennis Cunningham, Chairman of NAHB’s 55+ Housing Industry Council and president of ActiveWest Builders in Coeur d’Alene, Idaho. “Consumers in this market want a home that addresses their specific needs, and 55+ builders and developers are able to create homes and communities that cater to these needs.”

Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of: NMP News Flash column Phone #: (516) 409-5555 E-mail: Newsroom@MortgageNewsNetwork.com

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

n National Mortgage Professional Magazine n SEPTEMBER 2017

A strong rush of activity during the second quarter helped fuel the overall total of commercial mortgage-backed securities (CMBS) loans closed in the first half of 2017, according to data released by Trepp LLC. In a new report, Trepp noted that “2017 initially began at a sluggish pace after issuers cleared out their loan inventories prior to risk retention,” resulted in $10.5 billion in closed CMBS loans. However, the second quarter was uncommonly vibrant, with more than $21.2 billion in CMBS loans closing in that period—double the first quarter’s level and resulting in a half-year total to roughly $31.7 billion.

Within the CMBS sectors, Trepp

FHFA’s Watt Details Challenges to Increasing Black Homeownership The challenge to encourage a higher level of homeownership among the AfricanAmerican population was addressed by Mel Watt, Director of the Federal Housing Finance Agency (FHFA), in a speech delivered before the National Association of Real Estate Brokers 70th Annual Convention.

“While homeownership is not right for everyone and we should all be advocating for African-Americans to diversify their investments beyond just investments in their homes, homeownership has long been a great way for our families to build wealth,” said Watt, who acknowledged the historical obstacles of redlining and discrimination that slowed efforts for increased black homeownership.

“Studies confirm that, even after accounting for the severe adverse impact of the housing crisis, homeownership continues to be a powerful tool for building wealth in our communities.”

Although Watt noted that the government-sponsored enterprises (GSEs) were not lenders, he added that “one of our biggest challenges at FHFA has been getting lenders to make loans to creditworthy borrowers who want to buy a home—that has been far from an easy challenge to meet.” He cited

his agency’s efforts to provide assistance in the down payment process, which he identified as a major stumbling block that still keeps many people from buying property, and through the alternative credit score model and other efforts to determine creditworthiness outside of the traditional credit report model.

“In light of the number of borrowers who do not have traditional credit, another important change at both Enterprises has been to allow the purchase of loans through their automated underwriting systems to borrowers who do not have credit scores,” Watt continued.

“This program requires the lender to certify a borrower’s repayment history on non-traditional forms of credit, such as rent payments or utility bills. While certainly not a substitute for working with borrowers to build or repair their credit scores, this is an important step to enable the GSEs to consider non-traditional sources of credit, particularly rent payments.”

But Watt also stressed the need to ensure the viability of Fannie Mae and Freddie Mac cannot be sacrificed in the pursuit of higher homeownership levels. “In addition to the statutory responsibility FHFA has to ensure liquidity and access in the housing finance market, we also have the responsibility to ensure the safety and soundness of the Enterprises,” Watt stated. “We are constantly balancing these statutory obligations. For now, I continue to believe that we have found the right balance.”

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A panel of more than 100 real estate experts and economists assembled

by Zillow looked into the future and see a recession looming on the far horizon.

The latest Zillow Home Price Expectations Survey forecast a 73 percent chance that the next U.S. recession will begin by the end of 2020. However, the Zillow panelists predicted this recession will be sparked by global tensions rather than an overheated housing market.

In fact, the panelists expected the recession to have moderate impact on the U.S. housing market overall, with some major markets—most notably San Francisco, Miami, New York and Los Angeles—feeling the brunt of the tumult.

“That experts believe geopolitical crisis is the most likely next trigger for the next recession is a sign of the times we’re living in,” said Zillow Chief Economist Svenja Gudell.

“Historically, geopolitical events rarely cause a sustained recession, and other contributing factors, such as oil price shocks, play a more predominant role. We’ve enjoyed eight years of sustained growth following the last recession, but the housing market is still recovering in many ways. The housing market is not expected to cause the next recession, but some major markets could see some collateral damage.”

noted the impact that retail had on the CMBS picture. “The continued retail malaise and the rise of alternative lending sources, among other sector changes, have created noticeable shifts in the CMBS issuance landscape in terms of property type exposure,” the Trepp report observed. “Although retail has historically backed about onefourth of newly securitized mortgage totals, the share of retail loans in total issuance fell to 13.56 percent in the second quarter, down from an already reduced percentage of 15.19 percent in Q1.”

Trepp added that multifamily loan purchased by governmentsponsored enterprises “are poised to hit another record in 2017. This has diminished the presence of apartments in private label transaction volume to roughly two to four percent in the past two quarters. In addition to heightened lending on hotels, CMBS loans against trophy office towers in central business districts like New York have been the main drivers of year-to-date issuance.”

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Establishing and Maintaining Your Online Presence Once an afterthought, now a necessity

By Chris Johnstone

F

1. Referrals from past customers.

2. Referrals from industry partners, such as real estate agents and financial planners.

3. New customers from advertising direct to market.

These borrowers don’t normally have a real estate agent or a friend to refer them to someone.

amount of Five-Star Testimonials, you are leaving money on the table.

Here are some simple steps to help get you started: 1. Make sure you claim a Google My Business Page for your business and ensure it is in the mortgage lender category.

2. Make sure your Web site is optimized for all three of the key phrases that are going to drive business for you. This includes your name, your brand and the phrase “mortgage lender.”

3. Take the time to create a solid system for generating Five-Star Reviews from your happy clients on your Google My Business Page.

4. Create a consistent content plan for your Web site so you are publishing quality content at least once a month.

Investing in your online brand and reputation is no longer nice to have. It is a must have for professionals that are looking to stay current and increase in volume in the next five years.

Consider this … when one of our clients came to see us a year ago, they had no Google My Business Page and their Web site was a template and somewhat of an afterthought. Fast-forward to today and 30 percent of their funded volume is now coming from their online presence.

Chris Johnstone is Chief Executive Officer of Connection Inc. Chris focuses on empowering businesses with the proper knowledge of how to create significant sales growth using online marketing. He may be reached by email at Chris@ConnectionIncorporated.com.

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Now consider how new technology like Google searches and smartphones have changed the way your customers find their lender.

When one of your past customers refers your name to one of their friends, what happens next?

A new study from Google show us that up to 83 percent of today’s consumers will check online ratings and reviews of the referred individual.

Take a second to pull out your smartphone and Google your name. Does your “Google My Business” Page show up? How many Five-Star reviews does your business have? Is it overwhelmingly clear that you are an expert at mortgage lending and that whoever referred them to you made a good recommendation?

If your business is not providing the online proof that our new digital consumer needs to feel comfortable picking up the phone and calling, you are losing referrals.

To fix this, you need to ensure that you have a process in your business to ask your past customers and all of your new customers to leave you Five-Star Ratings and reviews on your Google My Business page (Zillow, Yelp and Facebook are also important).

You also need to ensure that your Google My Business Page is

set up correctly so it shows up when people Google your name.

Now consider what happens when a referral partners refer you a customer using your business name …

When that potential new customer pulls out their smartphone and Googles your company name, what do they see?

Take a second and see …

Are you putting in the proper tools to support your referral partners by making sure that when the customers that they are referring to you find you it’s very clear that they have given them a good referral? Do you have enough Five-Star Ratings and reviews to make that new customer comfortable in calling and speaking with you?

The days of your online presence consisting of just a Web site to take applications are over. Your online presence is a fantastic opportunity to close more deals from your existing referrals and referral partners.

Now, what about the almost 25 percent of the market that’s choosing a lender direct from an online search?

Open up a new Google Search and type in a mortgage lender.

What are all the highest quality online leads in your marketplace seeing?

If your company is not showing up in the map listings (the three pack) with a good

NationalMortgageProfessional.com

in Tech has begun to rapidly change the mortgage lending landscape.

A recent study by Accenture shows that 23 percent (one in five) funded their loans through the Internet and/or an online channel. Many of these customers use the Internet to find a local lender, and then proceed to complete their transaction through a mixture of digital and traditional communication.

Mortgage professionals who are able to understand and implement simple digital marketing strategies are the ones who are going to be able to significantly grow their volume and market share in the coming years.

Personally, I have already seen my own clients beginning to change their purchase behavior. It’s up to us as mortgage professionals to shift our marketing strategies to in order to keep pace.

Traditionally, the mortgage industry has been slower when it comes to adapting to change.

With ever increasing regulation and long product cycle to market times, it has become hard to keep up with these incredibly fast changes.

Implementing the latest “tech” tools is not easy; however, it is necessary.

Those of us who are able to move quickly will be rewarded by the market. The great news is that it’s really not that complicated to get results. You just need a clear plan of action and know which steps you need to take.

Consider this … there are three main ways in which mortgage lenders can generate customers.

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

calendar of events

SEPTEMBER 2017 Sunday-Tuesday, September 24-26 Mortgage Bankers Association 2017 Risk Management, QA & Fraud Prevention Forum Intercontinental Miami 100 Chopin Plaza Miami For more information, visit MBA.org.

Wednesday, September 27 NYAMB’s 29th Annual Convention & Trade Show The Melville Marriott 1350 Walt Whitman Road Melville, N.Y. For more information visit NYAMB.org.

Saturday, October 21 MPowering You: MBA’s Summit For Women in Real Estate Finance Mile High Ballroom Colorado Convention Center 700 14th Street Denver For more information, visit MBA.org.

Monday-Wednesday, November 13-15 2017 NRMLA Annual Meeting & Expo The Palace Hotel 2 New Montgomery Street San Francisco, Calif.

For more information, visit NRMLAOnline.org.

JANUARY 2018 Friday, January 12 New England Mortgage Expo 2018 Mohegan Sun 1 Mohegan Sun Boulevard Uncasvile, Conn.

For more information, visit TheWarrenGroup.com.

Thursday-Friday, January 18-19 NEXT 2018 InterContinental Dallas 15201 Dallas Parkway Addison, Texas For more information, visit NEXTMortgageEvents.com.

Monday-Wednesday, November 13-15 Mortgage Bankers Association 2017 Accounting and Financial Management Conference Grand Hyatt San Antonio 600 East Market Street San Antonio, Texas For more information, visit MBA.org.

Monday-Thursday, January 22-25 Mortgage Bankers Association Independent Mortgage Bankers Conference 2018 The Ritz Carlton, Amelia Island 4750 Amelia Island Parkway Fernandina Beach, Fla. For more information, visit MBA.org.

DECEMBER 2017 Monday-Tuesday, December 4-5 Mortgage Bankers Association Summit On Diversity and Inclusion 2017 Capital Hilton 1001 16th Street NW Washington, D.C. For more information, visit MBA.org.

FEBRUARY 2018 Tuesday-Friday, February 6-9 Mortgage Bankers Association National Mortgage Servicing Conference & Expo 2018 Gaylord Texan 1501 Gaylord Trail Grapevine, Texas For more information, visit MBA.org.

MAY 2018 Thursday, May 10 Maryland Mortgage Bankers and Brokers Association Annual Conference 2018 Loews Annapolis Hotel 126 West Street Annapolis, Md. For more information, visit MMBBA.org.

AUGUST 2018 Wednesday-Saturday, August 15-18 Florida Association of Mortgage Professionals 2018 Annual Convention & Trade Show Walt Disney World Dolphin 1500 Epcot Resorts Boulevard Lake Buena Vista, Fla. For more information, visit MyFAMP.org.

OCTOBER 2018 Saturday-Monday, October 13-15 NAMB National 2018 Rio All-Suite Las Vegas Hotel and Casino 3700 West Flamingo Road Las Vegas For more information, visit NAMB.org.

Sunday-Wednesday, October 14-17 Mortgage Bankers Association 2018 Annual Conference & Trade Show Walter E. Washington Convention Center 801 Mt. Vernon Place NW Washington, D.C. For more information, visit MBA.org.

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

Call 516.409.5555, ext. 4 to discover how to maximize your event coverage.

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Saturday-Monday, October 14-16 NAMB National 2017 Rio All-Suite Las Vegas Hotel and Casino 3700 West Flamingo Road Las Vegas For more information, visit NAMB.org.

NOVEMBER 2017 Wednesday, November 8 Florida Association of Mortgage Professionals Miami Chapter Mortgage Gameday 2017 University of Miami Watsco Center 1245 Dauer Drive Coral Gables, Fla. For more information, visit MiamiFAMP.org.

Tuesday, December 5 2017 California Holiday Networking Party The Atrium Hotel 18700 Macarthur Boulevard Irvine, Calif.

For more information, call (516) 409-5555.

Sunday-Wednesday, February 11-14 Mortgage Bankers Association CREF/Multifamily Housing Convention & Expo Marriott Marquis San Diego Marina 333 West Harbor Drive San Diego For more information, visit MBA.org.

NationalMortgageProfessional.com

OCTOBER 2017 Monday-Thursday, October 9-12 Northeast Conference of Mortgage Brokers & Professionals 2017 Harrah’s Resort & Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, visit MBANJ.com.

Sunday-Wednesday, October 22-25 Mortgage Bankers Association 2017 Annual Conference & Trade Show Colorado Convention Center 700 14th Street Denver For more information, visit MBA.org.

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G J b product dR i Loans.

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Get MORE with Angel Oak Mortgage Solutions. © Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be 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. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. 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 and other classifications protected under the law. MS075 0817