HOUSINGWIRE MAGAZINE ❱ DECEMBER 2018/JANUARY 2019
LMI LENDING Lenders see compelling growth with products aimed at LMI borrowers.
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BACK TO BASICS Improving team productivity could be as simple as going back to the basics. HOUSINGWIRE MAGAZINE ❱ DECEMBER 2018/JANUARY 2019
102 2018 DRAUVANGUARDS GNAV E H T G N I D A E L52S EEXECUTIVES V I T U C E X E 2 5LEAD I N G T H E Y R THOUSI S U D N NG I G NI NDUSTRY ISUOH
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QL® MORTGAGE SERVICES
STRONGER TOGETHER Brian Mink QLMS Account Executive
Samir Dedhia Principal, SD Capital Funding QLMS Pinnacle Partner Iselin, NJ
Call (888) 762-5035 QLMortgageServices.com/StrongerTogether Equal Housing Lender, Licensed in all 50 states, NMLS #3030
We’re Driving Innovation Home.
Join us on the journey to a true digital mortgage for a chance to be eligible to win the $10K grand prize!* At Ellie Mae, we’ve always been guided by innovation. And that’s why we’re the only LOS provider with a true digital mortgage solution that covers the entire loan lifecycle, from beginning to end. Encompass® can help you to originate more loans, lower costs, reduce time to close, and ensure the highest levels of compliance, quality and efficiency. Find out how Ellie Mae is driving innovation that gets people into homes faster at elliemae.com/hw1.
*NO PURCHASE NECESSARY TO ENTER OR WIN THIS CONTEST. A PURCHASE WILL NOT INCREASE YOUR PROSPECT OF WINNING. Must be an Ellie Mae customer, Ellie Mae prospect (i.e., an employee of an organization that can legitimately utilize an Ellie Mae product for its business needs) or Ellie Mae partner; a legal resident of one of the 50 United States or D.C.; and 18 or older. Entry period: 10/1/18 – 9/1/19. One winner only. See https://www.elliemae.com/driving-innovation-home/terms-and-conditions for details.
HOUSINGWIRE DECEMBER 2018/ JANUARY 2019 EDITORIAL
CONTENT SOLUTIONS
EDITOR-IN-CHIEF Jacob Gaffney
MANAGING EDITOR Sarah Wheeler
ONLINE EDITOR Caroline Basile
CONTENT WRITER Alyssa Stringer
EDITORS Ben Lane Jessica Guerin
CREATIVE
ASSOCIATE EDITOR Kelsey Ramírez
GRAPHIC DESIGN Traci Cortez
NEW BEGINNINGS HEY HW MAGAZINE READERS! Since joining HousingWire in 2016, I have worked in various capacities on HW Magazine. Now, I was have been promoted to associate editor, which basically means it’s my job to make sure this reaches you every month. Going into 2019, I am excited to see where we can take HW Magazine. As I take over the production, I would love to hear from you! Do you have comments?
REPORTER Alcynna Lloyd
Suggestions? Are you an industry leader and
CONTRIBUTORS Casey Cunningham, Jeff Haywood, Pamela Herrmann, Debbie Hoffman, Rick Roque
Give me a call, shoot me an email or DM me,
want to know how to make your voice heard? I’d love to hear from you! We are already one of the few remaining, successful glossy print publications in the real estate and mortgage markets. Together, we can make HW Magazine better than ever. This edition finishes out our year and begins the next one, and what better
SALES
CORPORATE
way than with the recognition of some of the mortgage industry’s greatest
NATIONAL SALES DIRECTOR Jennifer Watson Laws jlaws@HousingWire.com
PRESIDENT AND CEO Clayton Collins
personal accomplishments and the impact they’ve had on the housing industry.
CALIFORNIA Christi Lingard clingard@HousingWire.com CENTRAL Mark Adams madams@HousingWire.com SOUTHEAST Tamara Wren twren@HousingWire.com
INTERIM COO Diego Sanchez
leaders. HousingWire Vanguard winners are recognized for their outstanding These editorial awards are peer-reviewed and hand-picked through a competitive selection process that recognizes only the best. Flip through to page 32 to get
MARKETING MANAGER Caren Karris
to know them.
CLIENT SUCCESS MANAGER Haley Hess
ronment is about to get rough and some experts are forecasting that only the
CONTROLLER Michelle Monroe
MOUNTAIN WEST Bill Brown bbrown@HousingWire.com
But as we peek into 2019, there are murky waters ahead. The lending envibest lenders will survive. Rising interest rates and high home prices are making competition fierce, and layoffs at mortgage companies have already begun. Our feature story from Pamela Herrmann gives lenders a few tips on how to manage the storm that is about to come, and minimize the number of layoffs that are necessary.
GREAT LAKES Lorena Leggett lleggett@HousingWire.com
Kelsey Ramírez Associate Editor @kels_ramirez Subscriptions are available for $149.00 for one year. A subscription includes the print magazine and online access to the digital magazine. Canada and foreign are only eligible to purchase the “Digital Only” subscription plan at $149 for one year. For subscription orders, call 1-800-869-6882 or email HW@kmpsgroup.com. Postmaster: Send change of address to HW Media, P.O. Box 47627, Plymouth, MN 55447. Subscribers: Please send last magazine label along with change of address requests. The information contained within should not be construed as a recommendation for any course of action regarding legal, financial or accounting matters. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. HW Media does not guarantee the accuracy of information provided, and is not liable for any damages, losses or other detriment that may result from the use of these materials.
Tweets From The Streets “The stark demographic and educational divisions that have come to define American politics were clearly evident in voting preferences in the 2018 congressional elections.” 3
55
41
by @ pewresearch
© 2018 by HW Media, LLC • All rights reserved
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 5
Congratulations Debby Jenkins! Congratulations, Debby, on being named a 2018 HousingWire Vanguard. As a leader and innovator, we appreciate your ongoing commitment to meet our customers’ changing needs and fulfill our affordable housing mission. Thank you for inspiring us to do our best while reaching for more.
DEC ’18/JAN ’19 68
2018 VANGUARDS
LMI LENDING Lenders see compelling growth with products aimed at LMI borrowers. By: Sarah Wheeler
52 EXECUTIVES LEADING THE HOUSING INDUSTRY
74
32
BACK TO BASICS
VANGUARDS This year’s HousingWire Vanguards represent the best of the housing and mortgage industries. Flip through to get to know them, and how they are changing the industry for the better.
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Improving lending team productivity could be as simple as going back to the basics. By: Pamela Herrmann
78
DIGITAL WAVE
TRAILBLAZERS
COMPANY SPOTLIGHT
The next step to the digital mortgage lies with utilization of blockchain technology. By: Debbie Hoffman and Rick Roque
The mortgage industry faces a variety of challenges, but also great possibilities.
For nearly 100 years, this community bank has made homeownership personal. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 7
Jeff Benjamin SVP, Sales & Client Management, Ellie Mae 2018 HousingWire Vanguard Award Winner
Jeff is driving innovation home Jeff’s journey to becoming a Vanguard started as a loan officer 35 years ago and has led him on an epic road trip to help lenders originate more loans, lower costs and reduce time to close. He embodies the spirit of this award as an advocate for innovation, operational efficiency and the voice of the lenders he serves. His leadership is moving the mortgage industry forward, each and every day.
elliemae.com | 925.227.7000
CONTENTS 12 THE LINEUP 12 PEOPLE MOVERS Realogy Holdings appointed John Brennan to chief ethics and compliance officer.
14 EVENT CALENDAR
14
This year’s MISMO Winter Summit will be held in Clearwater, Florida.
15 ON THE SHELF Robin Sharma talks about his revolutionary morning routine in The 5 AM Club.
16 DISPATCH 1 FirstClose’s product gives lenders an organized, all-inclusive look at their performance.
18 VIEWPOINTS The sustainable communities idea is rooted in notions about the conditions under which communities succeed.
30 MOVE THE MIDDLE Leaders, you have an incredible opportunity to grow your business, and it is sitting in your office right now.
Tweets From The Streets Last week, 20,000 Googlers staged a walkout to demand a more equitable workplace. This week, Google agrees to some (although not all) of their demands, including the end of forced arbitration for sexual harassment cases. That is pretty cool to see.
37
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by @ daiwaka
Auction.com’s local teams bring local expertise to a national scale.
20 DISPATCH 3
28 AFFORDABILITY
28
18 DISPATCH 2
United Wholesale Mortgage warns of the dangers behind a “cheap” wholesale lender.
22 LENDING LEADERS Exploring solutions for the mortgage industry in the digital age.
24 SOUNDING BOARD Amazon is moving in lending and real estate – and the industries have a lot to say on it.
26 HOT OR NOT Overall loan quality is deteriorating; Millennials are buying homes. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 9
Congratulations Stan! 2018 HW Vanguard Award Recipient
Stanley Middleman, Chairman and CEO
On behalf of all of us at Freedom Mortgage, we are proud that you were selected for the 2018 HousingWire Vanguard award. Your strong leadership in an ever-changing industry and your steadfast dedication to fostering homeownership across America are key attributes we admire. <RX PDNH D GL"HUHQFH HYHU\ GD\
Freedom Mortgage Corporation, 907 Pleasant Valley Avenue, Suite 3, Mount Laurel, NJ 08054 800-220-3333. Lender NMLS #2767 (www.nmlsconsumeraccess.org). Equal Housing Opportunity. Š 2018 Freedom Mortgage Corporation. All rights reserved. WS244 (1118)
CONTENTS
BACK DEPARTMENTS 80 MULTIFAMILY Multifamily lending hit new highs in 2017 –here were the top lenders.
84 EQUITY INSIGHT Take a look at the top reverse lenders and the approach they took to get there.
88 CFPB WATCH Hundreds of mortgage execs came together to ask the CFPB to change LO pay rules.
93 KUDOS More than $50,000 was raised for cancer patients and wounded war veterans.
96 Q&A 1
84
FICO’s Jim Wehmann talks about the company’s latest credit score innovations.
97 Q&A 2 CoreLogic’s Nancy Langer answers questions on breaking the real estate tax bottleneck.
98 Q&A 3 ListHub’s Celeste Starchild on serving the digital-first homebuyer.
100 KNOWLEDGE CENTER
#
Connecting with borrowers online: A report on digital mortgage trends.
102 KNOWLEDGE CENTER
88
106
Here are six ways to reduce the cost of loan production by 50%.
104 COMPANIES/ PEOPLE INDEX 105 AD INDEX 106 PARTING SHOT
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 11
John Brennan Realogy Holdings
12 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
CHOI
KRIEHER FERGUSON
LEINAN SONG
I
N DUST RY veteran Matt Slonaker joined WFG National as senior vice president of national business development. Slonaker previously worked at Title Sales Benchmark Index as managing director of financial services. Slonaker also held executive sales leadership positions at Chronos Solutions, Solutionstar and Carrington Holdings. New American Funding appointed Justin Brown as the new leader of its L.A. West Region. Brown will also become manager of its Glendora, California-based branch. Plaza Home Mortgage recently appointed Jeff Leinan as its new executive vice president. Leinan previously served as the lender's senior vice president of national wholesale production. U.S. Bank promoted Manuel Rodriguez to its market president for its San Diego market. Rodriguez previously served as vice president within the commercial banking division. Prior to joining U.S. Bank, Rodriguez served as the vice president of interest rate derivatives and vice president of special-
PHILLIPS
RODRIGUEZ JEHLICKA
Realogy Holdings appointed John Brennan to the position of chief ethics and compliance officer. In addition to his new role, Brennan will also retain his current role as chief audit executive. Brennan will now assume responsibility for Realogy’s ethics and compliance program.
ized lending at Wells Fargo. U.S. Bank appointed Mahesh Kharkar as the president of its Northern California market. Prior to joining U.S. Bank, Kharkar served as the senior vice president and market manager for the healthcare and institutions group at Bank of America Merrill Lynch. Kharkar also served as the senior vice president and regional manager of healthcare financial services at a California-based Wells Fargo and has led a national sales team for Wells Fargo HSBC Trade Bank. MG Capital added J.P. Morgan Asset and Wealth Management Executive Director Joanna Koutsos to its management advisory board. In her role as an MG Capital advisory board member, Koutsos will counsel the firm on how it to expand its reporting capabilities for investors. LRES promoted Ann Song to senior vice president of operations. In her new role, she will focus on expanding the company’s commercial appraisal. Prior to joining LRES, Song worked for the U.S. Bank in various management positions, with a focus on asset management, REO and
quality control. Dominion Due Diligence Group hired Jenn Krieher as housing preservation manager. Prior to joining Dominion, Krieher worked at the Department of Housing and Urban Development where she was part of the Office of Recapitalization. Flagstar Bank announced that Scott Bristol joined the company as senior vice president and national production manager of its retail mortgage business. The industry veteran previously served as the national sales manager at New American Funding and other big mortgage companies. Bristol also served as president and national sales manager at PrimeLending. Movement Mortgage announced that Yong Choi joined the company as a regional director. The industry veteran will now serve as Southern California’s regional director. Prior to joining Movement Mortgage, Choi held positions at All Western Mortgage, Guaranteed Rate and Wells Fargo Home Mortgage. The Bainbridge Companies recently hired five members to its executive team in support of its growth initiatives in the Mid-Atlantic region. The company brought on Christopher Phillips as chief financial officer; Heidi Jehlicka as senior vice president of marketing and employed development; Mark Stewart as senior vice president and chief investment officer; Travis Bean as financial analyst; and Jeffrey Smith as recruiting manager. Class Valuation named Gary Ferguson as its chief technology officer to spearhead its pursuit of tech solutions. Ferguson has 20 years of experience, and prior to joining Class Valuation, Ferguson was CTO at Centric Technology Solutions.
EVENT CALENDAR
! D I R O FL
MISMO WINTER SUMMIT JANUARY 7-11, 2019 Host: Mortgage Industry Standards Maintenance Organization Location: Hyatt Regency, Clearwater, Florida Cost: $549 On the agenda: The Mortgage Industry Standards Maintenance Organization is hosting a summit designed to provide industry professionals with all the information and data they need to successfully master the market. Experts in the mortgage industry will educate attendees on topics including blockchain, digital mortgages and risk mitigation. The event extends an invitation to members of the organization and those interested in learning more. 14 HOUSINGWIRE â?ą DECEMBER 2018/JANUARY 2019
CLEARWATER, FLORIDA The sunshine state is home to some of the most beautiful beaches in the country, offering beachgoers a once in a lifetime opportunity. The MISMO summit takes place only a few minutes away from Clearwater Beach, where attendees can board a cruise ship and watch dolphins and whales swim through the magnificent blue waters of the Gulf of Mexico. This beach is known for its stretch of soft, white sand and its calm waters. At sunset, the beach is full of festivals, street performers and more. http://www.mismo.org/news-and-events/mismo-summit
ON THE SHELF The Infinite Game BY SIMON SINEK PENGUIN RANDOM HOUSE
What makes a good leader? The ability to adopt an “infinite” mindset, according to motivational speaker Simon Sinek. In his latest book, Sinek pits finite games with known rules, like baseball and chess, against what he calls infinite games, like business and politics, where the rules are fluid and there is no endpoint. “Many of the struggles that organizations face exist simply because their leaders were playing with a finite mindset in an infinite game,” Sinek writes. His book explores how leaders can adopt a fresh way of thinking that will open the doors to innovation and success.
The 5 AM Club BY ROBIN SHARMA HARPER COLLINS
Leadership expert Robin Sharma is back with a book about his revolutionary morning routine that is promised to maximize productivity and help you live your best life. In The 5 AM Club, Sharma weaves a tale of two struggling strangers who meet an eccentric tycoon with an interesting philosophy that has propelled him to great achievement. The book focuses on goals such as activating your best health. Sharma’s book is a how-to guide on re-evaluating your daily routine to encourage creativity, renewal, personal fulfillment and professional success.
FIRSTCLOSE | SPONSORED CONTENT
Leveraging data to provide true vendor insight and lending process improvement FirstClose goes beyond vendor management to give lenders a holistic view “What’s really important is understanding the results you are getting from your processes. How many days does it take your operation to provide a customer with a product or service? What can you do to improve that?”
F
inancial institutions rely on their vendor partners for critical services and solutions. But understanding how vendors are actually performing — and where another vendor could offer better performance — is beyond the scope of most vendor management systems. Lenders need a truly objective look at their business processes which is only possible through reporting and analysis. FirstClose leverages its data to close the gap on vendor management, working with clients in a consultative process that provides insight for continuous improvement. “Vendor management itself is a very abstract thing,” said Christina Hardin, analyst at FirstClose. “What’s really important is understanding the results you are getting from your processes. How many days does it take your operation to provide a customer with a product or service? What can you do to improve that?” FirstClose works with a wide variety of vendors for title, flood, tax and valuation, and has data on those vendors’ performance over time. Not only can FirstClose help clients identify a vendor that is slowing down the process, but with its wide network, it can 16 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
also provide vendor options to provide efficiencies depending on the type of work or a geographic area. “A vendor may have the highest quality and fastest turn time in a specific coverage area, but as soon as you lend somewhere else, they fall on their face. Data analytics provides you with the insights to prevent throwing the baby out with the bath water,” said Tim Smith, chief revenue officer at FirstClose. Lenders with long-term vendor relationships can utilize FirstClose to generate an organized, all-inclusive look at their performance. Analyzing that data helps drive better-informed decisions, which is especially important as businesses look for more efficiencies. “It may make sense to use multiple vendor options tailored for coverage in an expanding footprint,” Hardin said. “FirstClose makes this easier for clients by providing a variety of options all under one platform.”
FIRSTCLOSE USERS HAVE REPORTED THE FOLLOWING: ' Improved automation in the lending department, which provides a higher employee production level and faster training for new employees. ' Reduced processing turn-times — loans closing faster yields happier borrowers. ' Consolidated vendors — a single point of contact for customer service. ' Eliminates the need to pull data from multiple sources since it is all integrated into the FirstClose Report. Lenders need insight they can only get from leveraging data. “Data-driven decision making is no longer an option in this competitive space,” said Smith. “Analyzing vendor data is part of continuous process improvement.”
CONGRATULATIONS
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2018 HousingWire Vanguard Award Winner
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PrimeLending.com
© 2018 PrimeLending, a PlainsCapital Company. PrimeLending, a PlainsCapital Company (NMLS: 13649). Equal Housing Lender.
AUCTION.COM | SPONSORED CONTENT
Auction.com's local teams help drive $39 billion in national sales with commitment to service A sea of green shirts brings local expertise on a national scale
O
ver the past 10 years, Auction.com’s brand has become synonymous with digital innovation and client service in the real estate industry. Our company transformed the way buyers and sellers interact by making it possible to transact foreclosure, CWCOT and REO sales online. Our controlled and efficient auction processes have revolutionized the way our clients manage their portfolios to achieve higher sales rates, while increasing sales execution, reducing timelines and mitigating risk. Most observers attribute Auction.com’s success to industry-leading marketing and innovative technologies, but that’s only part of our story. Auction.com created the foreclosure auction market in 2011. Since then we’ve invested hundreds of millions of dollars in technology and marketing support to grow the auction marketplace. But, we believe that our investment in human capital and commitment to an unmatched local footprint of highly skilled field teams is one of the reasons we are the only full-service auction provider. Today, we cover live auctions in more than 3,100 counties with the support of over 600 skilled and dedicated Auction. com employees.
A NEW STANDARD OF SERVICE The traditional foreclosure auctions conducted on the courthouse steps can be chaotic, confusing and difficult to navigate for most prospective buyers. The traditional process has not evolved since its inception. In contrast, when Auction.com conducts foreclosure auctions at the courthouse, leveraging our proprietary technology, data science, marketing and our “sea of green shirts,” we create a new standard of professionalism and effectiveness to drive toward higher sales rates. Our field team wears their “green to be seen” shirts with pride as a beacon of service, easily identified to assist prospective buyers. Our local teams standardize the registration, bidding and closing process to promote transparency and competition, closing the feedback loop through rich data and analytics to our clients. All these efforts work in unison to maximize sales and improve outcomes for sellers and buyers.
A HIGHLY VISIBLE AND PROFESSIONAL PRESENCE Auction.com is the only national real estate auction marketplace with local operations throughout the country. We build strong partnerships with local stakeholders, including investors, foreclosure attorneys, brokers and sheriff departments, by maintaining a highly visible and professional presence at every local auction event, regardless of climate, auction type or location and by assisting each stakeholder to enable foreclosure sales. Our field team’s priorities are to meet our buyers’ questions and service needs and exceed our sellers’ expectations. This team is instrumental in breaking down the barriers of entry for new prospective buyers and reducing fear and complexity of the foreclosure auction process through education and customer support. The effectiveness of this local approach is indisputable. Over 60% of our foreclosure auction buyers each month are first-time new customers of Auction.com. Our focus and investment in local teams are growing the buyer base for our clients and expanding the availability of foreclosure assets to new investors.
EXCEEDING THE STATUS QUO Our 600+ field team is a powerful example of Auction.com’s commitment to go Beyond the Bid, which is to exceed the status quo in everything we do. At Auction.com, a team approach and innovation in technology and marketing drive success for our clients. We are proud and committed to our exceptional team members and our ability to deliver unprecedented transparency between buyers and sellers. We are constantly innovating, so stay tuned for more exciting news. 18 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
UWM | SPONSORED CONTENT
Broker Beware: Cheap prices of ‘discount lenders’ don’t tell the full story UWM warns loan officers of costly roadblocks behind a "cheap" wholesale lender
W
hether you’re doing some personal shopping for airline tickets, or you’re a mortgage broker choosing which wholesale lender to work with, low prices will certainly catch your attention. It’s so easy for a loan officer to treat a mortgage lender’s rate sheet like gold, focusing on price (and only price) when choosing which wholesale lender to send loans to. But it can easily be a trap. Oftentimes, what looks better at first glance ends up looking less attractive once you peel back the layers of additional fees that come up throughout the closing process. The fact that loan officers have the ability to choose from several different wholesale lenders is a positive thing for the industry and for consumers. Having options is always a good thing. But it also leads to situations where loan officers are so bombarded by all the different lenders that they simply choose to send loans to the place with the best pricing on their rate sheet. That can turn out to be a big mistake. It’s the same mistake that consumers make when booking flights. The process is the same for everyone: you compare ticket prices across a variety of different airlines and focus on finding the lowest number possible. But what doesn’t show up in that low-ticket price is all the additional fees that they’ll nickel and dime you with. You have to pay extra money to bring a carry-on bag onto the flight. If you get hungry or thirsty over the course of the flight, snacks and drinks all cost extra money. In-flight entertainment requires a credit card. By the time the flight is over, the airline had found several ways to negate that overall price advantage they held over the other airline. That’s the risk you run when you choose the “discount airline” – the place that is widely recognized for offering the cheapest prices. On top of the financial discrepancy, you’re likely dealing with a worse customer experience, as well. If, after paying all the extra
Having options is always a good thing. But it also leads to situations where loan officers are so bombarded by all the different lenders that they simply choose to send loans to the place with the best pricing on their rate sheet.
20 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
fees, you still manage to save $20 on a flight with the discount airline, those savings probably aren’t worth it if you miss your connecting flight because that airline ran an hour behind schedule. The sentiment is the same in the mortgage business when loan officers choose to send loans to “discount lenders.” One wholesale lender might be the clear frontrunner because of their rate sheet, but rate sheets don’t describe the full loan experience. The discount lender with cheaper rates likely has more expensive mortgage insurance and extra appraisal fees, closing fees and escrow waiver fees that negate a huge chunk of their price advantage. All of that nickel-and-diming can even add up enough to make the discount lender the more expensive option. Larger wholesale lenders can negotiate based on volume to bring additional savings to their broker partners, and those savings ultimately get passed on to borrowers. Don’t fall for the “cheapest price” routine that discount lenders push. Look at the overall package. Not only is the cost gap not as large as it might initially appear, but you’re likely signing up for the worst experience for you and your customer. And then, you can forget about getting a good review, let alone a referral or repeat business.
LOANCARE CONGRATULATES ADAM SAAB, COO 2018 HOUSINGWIRE VANGUARD AWARD
Adam’s dedication to the company, his employees and the customers deserves to be recognized! He’s a true leader who has positioned LoanCare for even greater success in the future. Congratulations, Adam!
loancareservicing.com
OLD REPUBLIC TITLE AND PAVASO | SPONSORED CONTENT
Exploring solutions for the mortgage industry in the digital age Three experts answer your questions about digital adoption THE COMPANIES THERE ARE MANY QUESTIONS and uncertainties surrounding the push for the mortgage industry to go digital. At Old Republic Title and Pavaso, we understand the digital marketplace and its role in the mortgage business. Our technology professionals are committed to helping those in the mortgage industry address common concerns and explore solutions for making their transition into the digital landscape as smooth as possible. Mark McElroy, chief digital officer and senior vice president of Old Republic National Title Insurance Company, as well as president and CEO of Pavaso; Brenda Clem, executive vice president of capital markets at Pavaso; and Eric Lapin, first vice president corporate development at Old Republic Title, answer some of the most frequently asked questions about digital mortgages.
THE QUESTIONS Why is the digital push happening now? Originating and servicing a loan is a time-consuming, highly regulated process. It relies heavily on paperwork and involves many procedures and professionals. Until recently, there was no way to optimize the process so that all the integral parties could work together in a swift manner. Now that the technology exists, consumers want the convenience it offers. Lenders can also use the same digital solutions to streamline their operations, saving them time and money. Why is it important to today’s homebuyers to do business any time of the day? We live in a mobile society. Today's homebuyers have different preferences than they did 30 years ago. Many travel frequently or work remotely, and they want the ability to do business anytime, anywhere. Giving consumers 24/7 access to online tools, infor22 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
mation and services gives them the power to initiate and manage the homebuying process at times that are most convenient. Is fintech a viable solution? Yes. Due to slow adoption of innovative financial technologies in the United States, pressure from within the federal government and non-government organizations is mounting for key regulators and influencers to remove regulatory barriers to implementation. Advancements in digital ledger technologies like Blockchain are also happening every day, with companies like Pavaso already harnessing the technology to optimize proprietary data. These new technologies can help lenders improve the customer experience, maximize efficiencies and optimize data to enhance business practices. What are some common misconceptions about going digital? Going digital is not an all-or-nothing experience. For example, Pavaso’s eClosing platform offers a variety of digital solutions that can expedite the closing process, yet, it continues to accommodate traditional systems and processes. The platform also provides a single, secure portal that allows everyone involved in the transaction to communicate, exchange and access information in real-time. With so many digital platforms out there, how do I choose? It’s important to make well-informed decisions about the application of new technologies and select products that are robust enough to serve you in the future. Look for a well-rounded, integrative platform that is easy to use and offers great customer support. You also want to choose a provider that is stable, well capitalized, and has a strong research and development pipeline. Pavaso and Old Republic Title satisfy these requirements, and enjoy the backing of their parent company, Old Republic International Corporation, a member of the Fortune 500. Together, we have the technology, expertise and resources to help lenders, title agents and other mortgage industry professionals streamline their operations today and do business in the digital age. For more information visit: http://connect.oldrepublictitle.com/digitalmortgages
CONGRATULATIONS
KHALED (KAL) EL SAYED
WINNER
2018 HOUSINGWIRE VANGUARD AWARD
CEO & President Guidance Financial Group, LLC Guidance Residential, LLC
For exceptional leadership and dedication in leading the industry in Islamic Home Finance Services to Americans and bridging the gap between Homebuyers and Real Estate Agents, all under the Guidance umbrella of Guidance Home Services and Guidance Residential. Please visit: GuidanceResidential.com Real Estate Agents visit: GuidanceHomeServices.com
Where experts and pundits sound off on a key industry issue
A M A Z O N I N L E N D I N G A N D R E A L E S TAT E “Right now, our industry is too chaotic for companies such as [Amazon, Google etc.] to enter. But I think with this digital journey, customer journey, continuing to mature and big data, AI, robotics and engineering is going to cut out much of the friction in our process. As that friction gets to a certain standard, it’s going to be a lot more attractive. Real estate and mortgage is a massive market, and it’s something that they have to look at.” – LoanDepot Chairman and CEO Anthony Hsieh “Amazon’s ability to bring a home to life with Alexa smart home experiences, entertainment and services – coupled with their obsession with customer experience – is a natural extension of our Everything’s Included approach to homebuilding.” – Lennar Ventures President David Kaiserman
“In the case of either of these horizontal players [Facebook and Amazon], I do think it’s very difficult for horizontal players to compete with vertical companies that are focused on the vertical and have as big a brand as our family of brands have.” – Zillow Group CEO Spencer Rascoff “The regulatory environment in our space is something that people don’t want to wade into lightly, because it does have an effect on other things that you do, depending upon how you decide to structure that. But I don’t think anybody in this room should sit back and say, ‘Nah, they won’t do that,’ because we’ve just watched, especially Amazon, disintermediate business model after business model after business model.” – Quicken Loans Vice Chairman Bill Emerson “We’re facing some tough market conditions right now, but the companies that are going to survive and thrive are the ones who can deal with that and move forward in the technological advancements in the industry. Look to Amazon and Google for what people want now and in the future.” – Former Fannie Mae CEO Tim Mayopoulos
24 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
Hot SIZZLE? Not FIZZLE? 1 1 WHY THE
WHY THE
MILLENNIAL HOMEOWNERSHIP
CREDIT RISK
Moody’s Investors Service released a report citing deterioration in overall loan quality in the mortgage lending market. The analysts think the problem might get worse before it gets better. “Further weakening would heighten the risk of performance deterioration, a credit negative for certain financial institutions and residential mortgage-backed securities,” the report, led by Senior Analyst Jody Shenn, states. The report explains that although the U.S. economy is strengthening, mortgages today appear more likely to face a stressed environment within only a few years.
The homeownership rate increased only just slightly in the third quarter, driven primarily by a jump in first-time homebuyers. This increase came as more Millennials opted out of renting and entered into the homeownership market. Homeownership among those under age 35 increased from 35.6% in the third quarter 2017 and 36.5% in the second quarter 2017 to 36.8% in the third quarter 2018, the quarterly homeownership and vacancy report from the U.S. Census Bureau showed.
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JPMORGAN CHASE EXPANSION PLANS For nearly six years, the U.S. secretly stunted the growth of JPMorgan. The OCC placed restrictions on expansions for the big bank for violating banking regs, but now that the Trump administration loosened restrictions on financial institutions, JPMorgan is back and can proceed with its expansion plans. Those with knowledge of the matter described the ban as “one of the more extreme ways they exerted their control behind the scenes.” And now that the pressure is off, JPMorgan can go ahead with its growth plans.
SHORT-TERM RENTALS Expedia Group, the online travel giant that includes Hotels.com, trivago, Orbitz, Travelocity and Hotwire, also has two of the biggest names in short-term rentals under its umbrella: HomeAway and VRBO. Now, Expedia wants to work with the multifamily industry to make it easier to use units as short-term rentals. Expedia announced that it is acquiring Pillow, a San Francisco-based startup that helps apartment owners work with their long-term residents to turn their occupied units into short-term rentals, and ApartmentJet, a software company that enables multifamily property owners to turn units into guest suites.
26 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
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CFPB LO PAY RULES Almost 250 senior executives at some of the nation’s largest mortgage companies want the government to make changes to the rules surrounding how they’re allowed to pay their loan originators. The group of mortgage execs sent a letter to the Consumer Financial Protection Bureau, calling on the bureau to change its Loan Originator Compensation rule. The executives write that changes to the LO Comp rule should be the CFPB’s “top priority.” The group also stated that making changes to the LO Comp rule will “help consumers and reduce regulatory burden.”
ELLIE MAE EARNINGS While Ellie Mae's third-quarter earnings results were positive, it was significantly lower than Wall Street’s expectations, and could even signal a slow-down ahead for the U.S. economy and the mortgage market. The company’s revenue increased 15% in the third quarter to $123 million. This was below the expected $128 million. But despite the miss, Ellie Mae CEO Jonathan Corr said he was proud the company showed growth in the challenging mortgage environment. The company decreased its revenue expectations for the year from $116 to $113 million, down from the projected $128 million.
Congratulations to Chris Boyle, -YLKKPL 4HJ *OPLM *SPLU[ 6"JLY A 2018 HousingWire Vanguard Award winner
A one of a kind award for a one of a kind leader. We’re proud of you for leading the way in the mortgage industry.
The HousingWire Vanguard Award™ recognizes leaders of businesses contributing to the growth of the housing economy. Chris and the Freddie Mac leadership team continue to think of smart new ways to reimagine the mortgage experience and build on the industry’s growth. That includes supporting and helping to advance women, which is key to all our successes. Freddie Mac’s new #LeadingTheWay campaign focuses on moving past barriers and championing women’s rights in the workplace. Meet some of the Freddie Mac senior executives who are leading the way at Freddie Mac and learn more about the campaign at: freddiemac.com/leadingtheway
VIEWPOINTS
By Jeffery Hayward
Sustainable and affordable New models for community success
Housing affordability is a crucial ingredient in any thriving community. And yet, in cities and towns across the country, there is a growing recognition that truly “sustainable communities” can be created only when multiple forces come into play. The cost of a home is only one of those factors. 28 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
Jeff Hayward is Fannie Mae’s executive vice president and head of its multifamily business. For over 30 years, he has led various aspects of the business, including credit, quality control, and risk management. Hayward is now responsible for the corporate affordable housing strategy and leads the company’s efforts on Affordable Housing.
The sustainable communities idea is rooted in common-sense notions about the conditions under which communities succeed. For instance, a company cannot thrive unless its employees can afford to live near their jobs. An affordable home cannot be sustained unless employment opportunities are nearby. A working family – even one whose rent or mortgage payment is affordable – cannot prosper longterm without access to transportation or health care near that home. Sustainable communities form where this interlocking web of support and opportunities exist together. EMPLOYMENT Increasingly, communities have an economic self-interest in preserving and expanding affordable housing options even in high-growth, high-cost markets. Workforce housing – or available, affordable housing near where people are employed – is critical for moderate-income employees, who are vital to the communities they serve. New models of affordable housing require collaborations between non-profit and for-profit housing developers, cities, states and major employers, and must expand to meet the need. HEALTH CARE Sustainable communities offer residents healthy, toxin-free homes, as well as basic health care services and wellness programs that encourage healthy, active lifestyles. Research has shown that buildings with healthy design features – like playgrounds, community gardens and tobacco-free policies – and enhanced resident health and wellness services have a measurable positive impact on the health and stability of low-income renters. After being sworn into office, U.S. Department of Housing and Urban Development Secretary Ben Carson explained that years of working directly with patients and their families taught him there is a deep relationship between health and housing. TRANSPORTATION In rural areas, people may have housing
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The sustainable communities idea is rooted in common-sense notions about the conditions under which communities succeed.”
but lack the ability to commute to a job. Even in major cities, crowded highways, aging infrastructure and inadequate mass transit are daunting and sometimes insurmountable obstacles for a working family. Better infrastructure and transportation planning, and a commitment to invest, will be a key ingredient in developing sustainable communities in the decades to come. EDUCATION The quality of education one receives has a direct correlation with ZIP code. In other words, the higher the cost of living, the better chance one has to receive quality educational opportunities. A good educational foundation leads to increased chances of attending higher education institutions and creates the long-term ability to land high-growth, high-paying jobs. But in areas where education lacks resources and the impoverished areas impact students’ quality of life and ability to concentrate on school, the generational poverty is cyclical and the opportunities are limiting. Education helps to create sustainable communities, or communities where your educational opportunities aren’t limited by where you live. Access to quality education in underserved communities improves outcomes and closes achievement gaps. Sustainable communities are being created, in many cases, by for-profit entities with a pro-social mission. For instance,
San Diego-based Comunidad Realty Partners has created a commercially viable model of workforce housing that incorporates social impact programs such as after school programs, job development, financial literacy, affordable health care and energy conservation into its very business model. Comunidad’s social impact philosophy is embodied in its slogan: “People, Planet, Profit.” Throughout the Sunbelt states, Comunidad has developed, preserved and operated nearly 9,000 multifamily rental units that are models for sustainable community development at scale. At Fa nnie Mae, we created t he Sustainable Communities Innovation Challenge, a two-year, $10 million commitment to foster new ideas that address our mission to bring access and affordability of credit to underserved markets. Contract awardees to-date include Nationwide Children’s Hospital in Columbus, Ohio, which is expanding an affordable workforce housing development with an integrated onsite healthcare workforce training program, as well as affordable rental housing within one mile of the hospital. These efforts are about more than meeting a need for affordable housing. They are a reaffirmation of an old truth: Thriving homes and sustainable communities go hand-in-hand, a symbiotic relationship in which one is not possible without the other. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 29
VIEWPOINTS
By Casey Cunningham
It’s time to move the middle How to fully engage employees with company goals
Leaders, you have an incredible opportunity to grow your business, and it is sitting in your office right now. Did you know that two-thirds of your company’s workforce is up for grabs? Studies show that a highly engaged employee is a top producing employee. However, 76% of employees are only partially engaged with their organization. 30 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
These are the middle performers, the ones who are in danger of becoming completely unengaged or leaving the company. They are waiting for a leader to step in and help them move to the next level of success. These employees could move to
the next level, but first, a good leader will know how to motivate them to drive this success forward. So how are you going to get them to fully engage with your organization? Employees reach maximum engagement when their company empowers them to become better performers and increase their production. Developing this middle tier of professionals is one of the most
Casey Cunningham is the CEO and founder of XINNIX. Based in Alpharetta, Georgia, XINNIX provides nationally recognized sales and leadership performance programs.
powerful investments leaders can make in the overall success of their organization. These are people who already know the company. They have proven themselves to be a cultural fit and committed to the industry. Now, it is time to take them to the next level. It is time to move the middle. TRAINING Many leaders are afraid that they will not receive enough of a return on their investment to warrant the cost of training. They assume training means teaching a few basic practices that most loan officers already know.That is why leaders should only invest in education that is going to give LOs actionable items they can quickly implement to improve their business.
Great mortgage training will give originators specific strategies for how to do the following: 3Execute effective sales calls 3Create a powerful business plan 3 Build long-term relationships with key referral sources 3Market effectively 3Take perfect applications 3Maintain and retain their database 3Leverage their current success for future business Obviously, there are many more examples of areas that training should cover, but the point is that by investing in a powerful sales development program, leaders empower their loan officers with the knowledge they need to move the needle forward on production.
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ACCOUNTABILITY Once leaders have ensured their loan officers are receiving the training they need, what is their plan for keeping them accountable to fulfill and implement this training? Is someone checking in daily? Does a leader encourage team members when they fail and celebrate alongside them when they win? Good leaders understand that they have ownership for their team’s performance. When people are held accountable to take action on the strategies and daily disciplines they have learned, their chance of success skyrockets. Accountability is a partnership for success. Some loan officers are motivated enough to hold themselves accountable to a high standard and put into practice the disciplines they need to succeed. However, the majority of loan officers are much more likely to get distracted when someone else is not helping to keep them focused. Most mortgage professionals need someone else to check in daily or weekly and make sure they are spending their time on the right priorities. Managers can fill this role, though this can also be a challenge when they are still producing their own business. Another option is bringing in a third party who will hold LOs accountable while training them in best practices to grow production. No matter how it is delivered, accountability is vital for mid-performers to reach the next level of success! COACHING We may admire athletes, but we respect coaches. No matter how much talent is on the field, no team will ever reach their full potential without a great coach investing
Good leaders understand that they have ownership for their team’s performance. When people are held accountable to take action on the strategies and daily disciplines they have learned, their chance of success skyrockets. Accountability is a partnership for success.”
in each player and strategically planning for victory. This is just as true in business as it is in sports. If leaders have loan officers who are not living up to their full potential, consider that they may be in need of a coach or mentor who can motivate them to achieve more. Finding someone who can meet them exactly where they are and work with them in real time to overcome their personal obstacles is vital. Coaching is about understanding the human psyche, going deep into the mentality of who people are, where they are and where they want to go in the future. A coach is someone who can get people fired up. A highly respected figure, they can pull from their own experience to directly understand and motivate others. A loan officer needs someone who has been in their shoes, who knows the struggle and who has made it to the other side. When leaders invest in a great coach for their LOs, they are showing that they believe their team is capable of achieving greatness! REPETITION At XINNIX, we have seen countless mortgage professionals experience incredible growth and transformation in their business when their leaders invest in them through training, accountability, and coaching. However, top producers can tell that one step is missing from this formula: repeating the process! When Olympic weightlifters reach a new goal, do they say, “Well, now that I’ve done that, I never have to go back to the gym again. I am the strongest I have ever been, and I will stay this way for the rest of my life without any effort.” Obviously not. They go back to the gym the next day and keep working. The truth is, training, accountability and coaching are not mean to be implemented only for a season. They are part of a system of growth that should be continual throughout our careers. Mortgage professionals should never stop striving to progress. This is the true secret to longterm career success. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 31
2018 VANGUARDS 52 EXECU T I V ES L EA D I N G T H E HOUS IN G INDUSTRY
Table of Contents Khaled Elsaye............................................43 Jay Farner............................................43 John Fraas............................................44 Chase Gilbert............................................44 Lucas Hansen............................................45 Matt Hansen............................................45 Scott Harris............................................46 Toby Harris............................................46 Deborah Jenkins............................................47 Bob Jennings............................................47 Mark Johnson............................................48 Selene Kellam............................................48 Michael Kolbrener............................................49 Mark Ladd............................................49 Shelley Leonard............................................50 Heather Lovier............................................50 David Lykken............................................51 Sanjeev Malaney............................................51
AS 2018 comes to a close and we prepare to take on 2019, the mortgage industry faces a new year that will bring both successes and challenges. HousingWire is proud to present the 52 winners of our 2018 Vanguard award. These 52 outstanding and diverse leaders are from all areas of the mortgage industry. Each Vanguard excels in a wide range of skill sets but all share one common trait: the ability to lead, motivate and inspire their employees. Each of them are more than capable leaders that utilize their resources to solve problems, create solutions and drive innovation in their respective areas in the industry. We are proud to share an industry with each of these individuals and pleased to honor the hard work they do. Read on to find out more about themâ&#x20AC;Ś
Sundeep Mathur............................................52 Stanley Middleman............................................52 Ward Morrison............................................53 Sung Park............................................53 Adam Saab............................................54 Michael Schreck............................................54 Faith Schwartz............................................55 Steve Smith............................................55 Olumide Soroye............................................56 Michael Steer............................................56 Jeffrey Taylor............................................57 William Tessar............................................57 Rick Triola............................................58 Ali Vafai............................................58 Al Velasco............................................59 John Warren............................................59
2018 VANGUARDS
Min Alexander............................................34 Rob Barber..................................................34 Gary Beasley............................................35 Jeff Benjamin............................................35 Jim Bennison............................................36 Christina Boyle............................................36 Amy Brandt............................................37 Jason Bressler............................................37 Lori Brewer............................................38 Kevin Brungardt............................................38 Anthony Cazazian............................................39 Matt Cesarz............................................39 Victor Ciardelli............................................40 Erin Collard............................................40 Thomas Cronkright............................................41 Rose Marie David............................................41 Michael Dubeck............................................42 Tony Ebers............................................42
2018 VANGUARDS
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MIN ALEXANDER
ROB BARBER
CHIEF OPERATIONS OFFICER
CEO
Auction.com
ATTOM Data Solutions
hen Min Alexander took on the role of COO at Auction. com in April 2018, she gained a team of 800 under her management. But with degrees from Duke and MIT, Alexander was ready for the challenge. Alexander grew up in Seoul, Korea, in a high-rise apartment tower. When she emigrated to the United States in 1982, she was awestruck by U.S. homeownership. To her, it symbolized hope, opportunity and stability. It became her life’s passion and mission to make real estate accessible to everyone. Immediately upon stepping into her COO role, Alexander launched lead initiatives that are having an unmistakable impact. Alexander has implemented rigorous training for the company’s 600-plus in-field employees to give them subject matter expertise and opportunities for continuous development in residential real estate so buyers can get their needs met during live auctions. She has set her sights on increasing employment and education opportunities for back-to-work moms and students to provide flexibility and new opportunities. Alexander is also leading the charge to bring more auctions online to increase buying and selling opportunities. Auction.com’s leadership on the front lines of bringing Ohio foreclosure auctions online is revolutionary and a great example of how Alexander has led the effort to be a front-line auction provider that innovates to meet the needs of new distressed property auction models. Alexander was named a 2017 HousingWire Woman of Influence. She conducts mentorship programs and leadership panels that assist young women looking to excel in the real estate sector.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “My secret to success has been to invest in the development of my teams, to achieve more than defined success for a specific role, and to unleash abilities and talents that were previously overlooked or unidentified. Success as a leader is driven by teamwork and trust.” 34 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
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ince spearheading the creation of the ATTOM Data Warehouse and the company’s rebranding as ATTOM Data Solutions in 2016, CEO Rob Barber has worked diligently to solidify the company’s brand as a leading supplier of premium property data. ATTOM’s data fuels software applications and end-user products for companies innovating within the real estate, mortgage, marketing and insurance industries. As CEO of ATTOM Data Solutions and a 25-year veteran of the real estate information services industry , Barber plays a key role in driving the company’s mission to increase real estate transparency by arming businesses and consumers with the property data needed to make wise decisions. This past year, Barber has led several strategic initiatives, launching new data delivery solutions that make data widely available to companies. This has brought comprehensive real estate data to disruptive startups and even to well established market leaders. In February, ATTOM acquired Onboard Informatics, integrating Onboard’s neighborhood data into the ATTOM Data Warehouse. This was followed by the launch of ATTOM List in May, which is a marketing list creation platform. Notably, the company introduced a new automated valuation model in June, and a new streamlined API developer platform in August. Barber has played a key role in each of these initiatives as the company seeks to increase real estate transparency.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “Get comfortable with ambiguity and with making decisions knowing you will not have all the information you would like to have. Moving forward with pace and decisiveness trumps the status quo and fear of failure.”
2018 VANGUARDS
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GARY BEASLEY
JEFF BENJAMIN
CEO AND CO-FOUNDER
SENIOR VICE PRESIDENT, SALES AND CLIENT MANAGEMENT
Roofstock
Ellie Mae
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n 2015, Gary Beasley was CEO of Starwood Waypoint Residential Trust – which at one point managed more than 15,000 single-family rental properties – when he found himself frustrated with inefficiencies in the real estate marketplace. The current system made it difficult to sell Waypoint’s properties with tenants in them, because the traditional MLS only listed vacant properties, and it was affecting the company’s bottom line. Not content to sit back and wait for someone else to fix the problem, Beasley jumped on the opportunity to build a solution. Beasley has an entrepreneurial spirit that motivated him to instigate change, providing an answer to a problem that had been plaguing the marketplace. Beasley partnered with Gregor Watson and co-founded Roofstock, an online marketplace for buying and selling single-family investment properties not listed in MLS. Using Roofstock’s marketplace, investors can own cash-flowing SFRs, diversify their investment portfolios and build long-term wealth through real estate. Now, Roofstock has become a major disrupter in the space, surpassing $1 billion on property transactions earlier this year. It also collected $42 million in Series C funding, a 20% increase over its initial round thanks for demand from insiders and new strategic investors. Since the beginning of 2018, Roofstock has nearly doubled its market presence thanks to the leadership of Beasley and Watson. The company now has SFR homes for sale in 40 markets and 23 states, and it continues to work on expanding its footprint.
eff Benjamin joined Ellie Mae during the company’s early days back in 2001, already having established himself as a mortgage expert and industry thought leader. Benjamin began his career in the mortgage industry more than 35 years ago, when, despite interest rates being more than 14% for a 30-year fixed-rate loan, he quickly became one of the top loan officers at his company. His knowledge of key leaders and service providers in the industry helped establish the Ellie Mae Network and helped launch Encompass which provided the springboard for the company’s IPO in 2011. As the SVP of sales and client relationship management, he now leads the team that has driven the company’s growth over the last seven years, establishing Encompass as the leading cloudbased provider for the mortgage finance industry. He helped bring the vision of how Encompass can support the largest lenders in growing business while absorbing all the new regulations and navigating how technologies can lower origination costs. Benjamin and his leadership team hold the responsibility of prospective clients and the 3,000 existing customers’ experience. An avid reader, he supports investment on management leadership and effectiveness. Benjamin hosts a regular “book club” to discuss and integrate the best thought leaders’ ideas into how his team can best execute. His voice is also heard through his Friday text messages to his entire team as he selects motivational quotes that inspires his team to be the trusted advisor in support of their lenders’ business.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “A college professor advised me to do something I am passionate about with my career, and not to just chase the money. His view was: If you love what you are doing, you will put in the time and effort and find a way to be successful. Plus, you will enjoy your day-to-day more.”
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “Over three and a half decades I’ve found that thinking a little differently and pushing for productive change has served me well.”
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 35
2018 VANGUARDS
JIM BENNISON
CHRISTINA BOYLE
EXECUTIVE VICE PRESIDENT AND HEAD OF ALTERNATIVE MARKETS
CHIEF CLIENT OFFICER
Arch Capital Group
Freddie Mac
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im Bennison was at the forefront of the biggest developments in mortgage finance in 2018. As EVP and head of alternative markets at Arch Capital Group, Bennison oversaw the creation of Arch MRT, which is engaged in risk-sharing pilot programs with Freddie Mac and Fannie Mae to provide lenders with credit enhancement options and to attract private capital to the housing market. Under each pilot, Arch MRT insures the GSE and then transfers 100% of the risk assumed to a panel of diversified, well-capitalized and highly rated insurers, reinsurers and mortgage insurers. The parties involved believe the program has the potential to provide savings to borrowers, reduce taxpayer exposure to the GSEs and diversify U.S. mortgage credit exposure to a broader set of counterparties. Bennison and his team also continued an insurance-linked security program that allows Arch MI to access the capital markets to transfer risk involving its MI portfolio. In August, the company announced a transaction that secured more than $653 million in indemnity reinsurance, which is believed to be the largest ILS transaction backed by a portfolio of MI policies. Bennison leads a team of 14 and oversees four business units that are critical to Arch Capital Group’s success: Arch Credit Risk Services, Arch MRT, Arch Mortgage Guaranty, and the Bellemeade ILS program. And it’s as a leader where Bennison truly shines. According to the company, Bennison “strives to foster a collaborative environment that encourages diverse viewpoints and opinions.”
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “I have worked with bosses who ran the gamut from bad to good, but I’ve never forgotten the boss who told me:, ‘Don’t overthink it. Just work harder than the guy next to you.’ Throughout my three-decade career, I have taken that to heart and encouraged my colleagues to do the same.” 36 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
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hristina Boyle, chief client officer of Freddie Mac, has been at the forefront of the integration between the physical and digital capabilities that support Freddie’s client engagement. She is the force behind Freddie’s pursuit of customer satisfaction through the creation of a best-in-class customer experience. Boyle led the GSE through the transformation and culture shift with a verve born of her passion for excellence and the thrill of improving both the customer experience and employee buy-in. Boyle has been integral to the “Borrower of the Future” campaign, a program meant to identify the needs lifestyles and challenges facing the next generation of homebuyers. So far, Boyle and her team identified five key forces that are reshaping how homebuyers think about themselves, their families and their futures: a growing diversity among potential homebuyers; new ideas about sharing, ownership and work; an expectation for frictionless, on-demand digital experiences; increasing financial pressures, such as student debt, that make it hard to afford a traditional 20% down payment; and many Baby Boomers deciding to age in place. Boyle’s goal is to help Freddie Mac’s single-family business communicate with lenders how to reach the borrowers of the future, confront socioeconomic shifts and better serve these borrowers. Boyle leads with the mentality of doing more than is expected of her and works to instill that mentality of excellence in her team at Freddie Mac.
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “The habit that has been crucial to Chris’ success is always doing more than was expected - preferably, quite a bit more. As an immigrant to this country from the UK, she believed her family had a debt to pay for their new American life.”
2018 VANGUARDS
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AMY BRANDT
JASON BRESSLER
PRESIDENT AND CEO
EXECUTIVE VICE PRESIDENT, CHIEF TECHNOLOGY OFFICER
Docutech
United Wholesale Mortgage
my Brandt has been spearheading peak performance at her company since she took the reins in 2017. Under her guiding hand, Docutech has enjoyed revenue growth of roughly 40%, gaining 27 clients and launching envelope pushing products and partnerships. Brandt is only the second CEO of Docutech and masterfully managed the transfer of leadership from that of the company’s founder and CEO of 25 years to hers. In addition, she built a high-performance team of industry leaders to take her company to new heights. Along with the advancement of its core mortgage-related business, Brandt led Docutech into new territory, carving out market share in the realms of consumer lending, servicing and other areas in need of the finest in streamlined, electronic documentation. Her focus is on doing, rather than speaking, wishing or complaining. She makes decisions with conviction and puts her full effort behind them. She admits mistakes when they happen, learns from them, and accomplishes the goals before her, one after another, making her company shine on its pursuit of excellence and new frontiers. For her every experience is opportunity to accumulate knowledge, to hone her craft. She is not content to wallow in past failures, instead using them as fuel for her next success. She believes that it is critical to hold on to confidence in the face of failure, refusing to believe that detours define the journey and allows only positive things to change her and inform her behavior.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “The secret to my success has been to get things done. Inevitably, there have been mistakes. But as long as I am willing to assess the risks, to make changes in flight to course correct and to admit when I am wrong—action leads to accomplishment.”
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ason Bressler was hired as United Wholesale Mortgage’s first-ever Chief Technology Officer in 2016. Bressler currently leads a team of more than 450 IT members focused on delivering partnership tools for mortgage brokers. Unlike most lenders, UWM’s Information Technology team is completely in-house. Bressler and the IT team understand exactly what it is they’re building and how they’re building it. Bressler has a personal mantra to keep him motivated: “Never Settle. Never Stop.” “It’s a driving force around how we’ve been able to staff up and produce at such a high velocity since I’ve started. It’s easy to say things are really good and take a step back. But I really believe that as soon as we hit milestones we didn’t think were even achievable at the onset, we should celebrate that and then keep moving upward without settling for what we did as being “good enough,” he said. Bressler oversaw the rollout of innovative proprietary tools that proved to be a difference-maker in the industry, including: UClose 2.0 - a revolutionary tool that gives mortgage brokers control over the closing transaction and enables on-the-spot closings. This is the first time that mortgage brokers don’t have to wait in a queue for a closer, but can still work with a closer if they choose to. One-Click AUS – With One-Click AUS, brokers instantly get a side-by-side comparison of DU and LP with one click of a button. This gives brokers the entire picture, allowing them to choose the option that has the best terms for their borrowers.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “The secret to my success is communication and active listening. Being in technology in the mortgage industry, I always want to stay so far ahead of the curve from our competitors while still satisfying our clients’ needs. The only way to do that is by recognizing that the best ideas typically come from your clients.” HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 37
2018 VANGUARDS
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LORI BREWER
KEVIN BRUNGARDT
FOUNDER AND CEO
CEO
LBA Ware
RoundPoint Mortgage Servicing
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ori Brewer, founder and CEO of LBA Ware, has been on a tear this year. Her company just increased company brain power by more than 20% with key hires, calculated $1.1 billion compensation (an 83% increase over last year), grew its Compensafe clients by 93% and its LOS Talker subscribers by 44%. Brewer is called upon frequently to lend her knowledge on topics ranging from compensation benchmarking, loan originator motivation, talent retention and cost containment on the industry’s biggest stages including the 2018 NEXT Mortgage Conference, HousingWire’s engage.marketing conference and the MBA’s 2018 annual convention. Brewer is committed to furthering the mortgage industry as a whole and devotes a significant amount of her time to sharing her knowledge with the industry both through speaking engagements and her service in organizations like the Advanced Technology Development Center, the Technology Association of Georgia, Stratford Academy college-preparatory and Middle Georgia State University School of Information Technology. She is not content to rest upon her laurels or entertain flippant notions of how to attain success. Brewer likes to say money does not follow doing what you love; money follows when you prove your worth. LBA Ware embodies her mentality and as a startup has fought for market share by attacking client pain points with gusto and savvy, never assuming that clients will pay for an unproven good service.
s CEO, Kevin Brungardt has guided RoundPoint Mortgage Servicing Corp. into a berth among the top 15 nonbank servicing companies in the U.S. With the help of his executive team, Brungardt completed a $94 million equity private placement of convertible preferred stock to secure a strong financial future for the company. The funds went toward RoundPoint’s expansion efforts, growing its leading mortgage servicing rights co-issue program, eliminating debt and investing in promising initiatives. Under him, the RoundPoint team generated an annual revenue growth of 174%, outperforming the past three years by 182%. Brungardt values his people and has earned RoundPoint distinction in Charlotte as the best large company to work for. It took that title in 2017 and is a finalist in the competition this year, once again. Brungardt believes in the company motto of “all in, all win,” and leads with a personal touch, never haughty, always approachable. He also believes in paying it forward, investing his time and effort to cultivate a culture of generosity and service by showing those virtues in his own life. Brungardt serves and promotes strong community involvement in the Charlotte and Dallas communities, encouraging his staff to volunteer to further a host of good causes. Ultimately, Brungardt’s mission is to create the first marketplace for homeowners that makes the total cost of homeownership transparent and helps make homeownership as a whole more sustainable and affordable.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “It’s often said that when you do what you love, the money will follow. I prefer to say that when you prove your worth, the money will follow. Once you can demonstrate your ability to deliver value, your customers will gladly pay for your services.”
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “To be a successful executive today, you must be able to blend the personal with the professional and take care of yourself physically, mentally, spiritually. Once you master this, you are living a truly integrated life.”
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2018 VANGUARDS
ANTHONY CAZAZIAN
MATT CESARZ
CHIEF INVESTMENT OFFICER AND PRESIDENT OF PORTFOLIO SERVICES
VICE PRESIDENT OF SOFTWARE ENGINEERING
A
Renters Warehouse
nthony Cazazian is a problem solver. He saw a major issue challenging the single-family rental industry – a lack of streamlined, standardized processes – and he set out to fix it, creating the largest corporate-owned property management company focused on the asset class. Now, Renters Warehouse can provide owners with a single point of contact to efficiently manage their rental properties across more than 40 markets. Cazazian built this model in a year and half, executing seven acquisitions and expanding operations into 12 new markets. He also built a new division within Renters Warehouse – Portfolio Services, which has a significant number of units under its management. Earlier in his career, Cazazian worked as a sales trader for a boutique brokerage company in the New York Stock Exchange. He then moved on Goldman Sachs, where he learned the ins and outs of electronic trading before joining one of the firm’s real estate and investment financing groups focused on commercial real estate. For a time, he worked at B2R Finance, where he provided portfolio loans on single-family rental portfolios, and then he made the leap to Renters Warehouse. “I began to realize that while financing of the asset class had grown and become easier, operating the asset class across multiple markets was very difficult for anyone that didn’t have their own institutional infrastructure,” Cazazian said. “So I joined Renters Warehouse to help create a solution for investors that need a single point of contact to manage their assets nationally.”
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “Be stubborn about putting yourself in new and uncomfortable positions, changing your routines and searching for different ways to solve problems. In particular, try to do this in the context of changes in an industry that excites you.”
W
Optimal Blue
ith more than 20 years of experience in software engineering, Matt Cesarz has led many successful, critical path teams in the financial services industry. In fact, Cesarz spearheaded the strategic decision to open Optimal Blue’s platform to third-party systems, positioning the company at the center of the large growing ecosystem of technology providers that rely on its APIs. As vice president, Cesarz has made significant progress deploying and advancing Optimal Blue’s business intelligence platform, which leverages visualization tools to make data understandable and meaningful for its consumers. Within the first year of launching, more than 40 tech providers integrated into the Optimal Blue system and more than 100 clients subscribed for its services. Through its RESTful API platform, Optimal Blue supports a deep integration of data and workflows across a variety of transactions including product eligibility, complete price results, and advanced lock desk functionality like re-locks, lock extensions, worst case pricing and change requests. Cesarz has also made significant progress with the recent deployment and continued advancement of Optimal Blue’s robust business intelligence platform, which leverages sophisticated visualization tools to make data understandable and meaningful. With its many lender integrations, the company has a unique insight on the lending market that now able to provide actionable, real-time insight to its client base. Cesarz and his team have focused their energy on overhauling Optimal Blue’s legacy products with the latest technologies.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “Trust and confidence in others has rarely let me down. People are often eager for ownership and the accountability that comes with it. Oftentimes, I find the biggest challenge is helping people to see when they are over-committing themselves.”
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 39
2018 VANGUARDS
V
VICTOR CIARDELLI
ERIN COLLARD
FOUNDER AND CEO
CO-FOUNDER
Guaranteed Rate
Blend
ictor Ciardelli, founder and CEO of Guaranteed Rate, despite mortgage market headwinds, has propelled his company to new heights in the last year. The company earned the number six spot in top overall volume on Scotsman Guide’s Top Mortgage Lenders 2017 list and had four originators rank in the top 10 by total volume. Whereas many mortgage companies have needed to initiate layoffs due to the market conditions, Ciardelli and Guaranteed Rate were able to hire 352 loan officers in the first half of 2018 and grow by 29% year-over-year. Ciardelli was also able to broker the joint venture between Guaranteed Rate and Realogy, creating Guaranteed Rate Affinity. Thanks to his efforts, Guaranteed Rate produced the POD model, the company’s unique platform that allows originators to provide a fully transparent, customer-friendly home buying experience. Guaranteed Rate has been on the bleeding edge of the race toward the digital mortgage and Ciardelli is working to push forward efforts to enhance Guaranteed Rate’s suite of technology. A firm believer in giving back, Ciardelli started the Guaranteed Rate Foundation, a self-funded nonprofit that aids people going through unexpected hardships. This year, the foundation surpassed the $2 million mark in aid administered. Ciardelli is passionate about family. He refuses to allow work to define him and strives to be a father and husband first. He says family is where his strength and inspiration spring from day-in and day-out.
WHAT IS ONE THING YOU CANNOT DO WITHOUT? “I truly cannot live without my family. My amazing kids – Victor, Tristan, Chloe and Ava – give me unbelievable strength and powerful inspiration every single day. I am incredibly blessed to be their father and cherish every moment I get with them. They motivate me to be the best I possibly can.” 40 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
E
rin Collard has over a decade of deep financial and technology experience, having served as both head trader and managing director at Clarium Capital. Today, Blend’s customers, including financial behemoths like U.S. Bank and Wells Fargo, now account for over a quarter of the U.S. mortgage market. But it wasn’t always smooth sailing for Collard: “It’s very easy to be a leader during times of success and revel in the momentum, but I have found throughout my career that what separates longterm success stories from passing fads are the teams who always stay focused on the broader vision and don’t get distracted by success or discouraged by minor setbacks.” While the average mortgage application can require up to 400 pages of paper documentation, Blend’s technology has enabled many of its partners to eliminate paper altogether. Furthermore, Blend’s technology cuts down the application cycle by up to 10 days. Collard ended 2017 on a strong note, leading Blend’s Series D fundraising round. Over a period of six months, he and his team worked tirelessly to find the right partners for the company and ended up raising $100 million in a round led by Greylock Partners, bringing the company’s total funding up to $160 million. The additional backing also helped the company grow its headcount to over 300 and open offices in New York City and Los Angeles. Earlier this year, Collard brokered Blend’s partnership with Lennar, America’s largest homebuilder, marking the first time that the digital mortgage extended directly to homebuilders.
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “I think the key to success is definitely persistence. Most of the time in business it’s about how you handle your failures.”
2018 VANGUARDS
T
THOMAS CRONKRIGHT
ROSE MARIE DAVID
CO-FOUNDER AND CEO
SENIOR EXECUTIVE VICE PRESIDENT, SINGLE-FAMILY MORTGAGE LENDING DIRECTOR
CertifID
homas Cronkright, co-founder and CEO of CertifID, is one of the industry’s first digital guardians. After his own title agency became a victim of wire fraud, Cronkright decided enough was enough and donned his cape as the co-founder of the first anti-wire fraud technology for the mortgage industry. Cronkright has been working with organizations like the American Land Title Association to increase fraud awareness and has published white papers providing practical advice for the industry in the fight against wire fraud. In its first year of operation, CertifID was named an HW Tech 100 winner. Cronkright was not content to just mope about his personal loss. Experts of the day told him to cut his losses and move on, but Cronkright was not going to take the fraud lying down. His motto is to spend only 10% of his time ruminating on the challenge, devoting 90% on the solution. He believes that many of the things that happen to people, good or bad, have a purpose and that unfortunate events can actually represent the dawn of a new opportunity or teach a valuable lesson. CertifID is the outworking of that belief. Instead of dwelling on his loss, Cronkright pursued a solution and ended up creating a fraud prevention technology that has safeguarded over $1 billion in safe wire transfers in 2018 alone. His path to impact and growth is a constant motion from experience to analysis to action, rinse and repeat until the next goal is reached.
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “Spending 10% of time on the challenge and 90% on how to solve it. Many things in our lives happen for a reason. Some are meant to teach lessons and others to bring opportunities to light. Many ‘challenges’ are some of life’s best opportunities.”
R
HomeStreet Bank
ose Marie David is far from her first career as a professional New York City ballet dancer, but there is where David Rose learned what it means to be committed and tenacious. The grit that made Davis shine onstage pushed her through more than 30 years in the highly competitive mortgage industry — from owning her own brokerage, dominating the sales force at MetLife, and to her current role as senior EVP of the mortgage lending division at HomeStreet Bank. Since 2012, Rose Marie has led HomeStreet’s single-family lending team with discipline and vision, achieving 500% growth in mortgage banking volume despite increasingly difficult housing market conditions. Under her leadership, the team provided 25,589 home loans in 2017, earning the No. 1 purchase market share in the Pacific Northwest and reaching the Scotsman Guide’s top 15 mortgage lenders by retail volume — an especially impressive feat for an institution that serves only a handful of states. David also embodies the company’s customer-first attitude, taking full responsibility for every mortgage the company touches. In the rare case it looks like a loan is about to go sideways, David is in the room helping to fix the problem so the client can still buy their home. David also takes an active role in the mortgage banking industry, often participating in roundtables with other leaders — like the Women in Mortgage Banking panel at the PNMLC Women in Executive Leadership conference earlier this year — to talk through the challenges they’re currently going through and collaborating on solutions.
WHAT HAS BEEN THE SECRET TO YOUR SUCCESS? “Persistence. You’re going to encounter challenges in life, but it’s important that you learn from them and grow.”
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 41
2018 VANGUARDS
A
MICHAEL DUBECK
TONY EBERS
CEO AND PRESIDENT
CHIEF OPERATING OFFICER
Planet Home Lending
Mr. Cooper
t a time when many mortgage banking companies are shedding costs and looking to get acquired and seeking exit strategies, Planet Home Lending has grown and posted a profit due to Michael Dubeck’s strategic industry insight and leadership. Dubeck is a visionary entrepreneur. He sees business opportunities throughout all cycles of the mortgage market and has swiftly, smartly and successfully gone after them. Dubeck believes the mortgage industry will always be in a state of flux. Interest rates and housing prices will cycle up and down. Innovations will alter the way we transact business. But the ability to recognize when market inflection creates opportunity will determine success. During the past year, his strategic moves have included launching a distributed retail channel, growing the renovation lending channel to new markets, acquiring subservicing clients and keeping the company’s portfolio recapture rate above industry standards. This year, Planet Home Lending has grown exponentially, expanding from zero branches in 2017, to more than 50 branches across the country. The company has also broadened its services to include a digital personal mortgage assistant, automated marketing and a proprietary CRM. Under Dubeck’s leadership, Planet has repositioned as a product designed to tackle current housing-market challenges. In subservicing, Dubeck has grown the company to over $1 billion in NPL and RPL subservicing for more than 20 clients, including a mortgage REITs, hedge funds and government entities.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “Understanding there will always be good markets and bad markets. To succeed, you need to take advantage of the opportunities market transitions create.”
42 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
I
t was a year of big changes for Mr. Cooper, the nonbank formerly known as Nationstar Mortgage, and Tony Ebers was right at the middle of it all. Ebers was promoted from executive vice president of originations to the newly created position of chief operating officer early in 2018, and hit the ground running in his new role. As Mr. Cooper’s COO, Ebers helped lead several major efforts for the company in 2018. Ebers took the lead on Xome’s (a Mr. Cooper subsidiary) acquisition of Assurant Mortgage Solutions, which expanded Xome’s footprint and grew its third-party client portfolio. Ebers also served a key role in Nationstar Mortgage Holdings’ merger with WMIH Corp. According to the company, Ebers “worked to promote the value of the company and identify the right partner that would allow the company to continue to grow and invest in its team and customers all while driving greater value for shareholders.” Ebers also oversaw the company’s development of its new mobile app, Mr. Cooper with Home Intelligence, which helps homeowners manage their mortgage and their broader financial wellbeing. The app is designed to provide homeowners help achieve their financial goals – from optimizing their debt, to realizing monthly savings opportunities, to paying off their home sooner. Ebers led an initiative to develop a “blended agent” program, which provides customers with a single point of contact on both the lending and servicing side of the loan. The initiative generated a 94% success rate among customers.
WHAT HAS BEEN YOUR SECRET TO SUCCESS?
“The leadership formula is underpinned by carefully defining your product and why it is unique, defining the value proposition for your customers and employees; all while clearly defining your plan to compete and win in your chosen market segment.”
2018 VANGUARDS
K
KHALED ELSAYED
JAY FARNER
CEO AND PRESIDENT
CEO
Guidance Residential
Quicken Loans
N
haled Elsayed has been utilizing his decades of experience in both the home financing industry as well as Islamic finance to provide a singular vision for Guidance Residential. As President and CEO, Elsayed has had a direct hand in ensuring that Guidance remains true to its mission of providing top-tier services to the underserved Muslim American homeowner market. “Our company, Guidance Residential, was founded for the explicit purpose of serving the underserved, in an arena where 98% of home financing opportunities are off limits,” Elsayed said. Guidance Residential is a U.S.-based Islamic home financing company headquartered in Reston, Virginia. Guidance Residential is the largest Islamic home financing provider in the United States by total market share in the niche market. The company started operation in 2002 to provide Shariah compliant, riba-free (free of interest or usury) home financing contracts to Muslim American home buyers. Guidance Residential is a wholly owned subsidiary of Guidance Financial Group, which is a subsidiary of the parent company, Capital Guidance. The company has funded over $4.5 billion in Islamic home financing in American Muslim real estate market through its Declining Balance Co-Ownership Program. The Declining Balance Co-Ownership Program is a Shariahcompliant structure of home financing based on “Diminishing Musharakah” or Equity Partnership model, which is a non-lending method of home financing and is unique to the Islamic home financing market in the United States.
o list of the housing industry’s biggest and most influential leaders would be complete without the person in charge of one of the nation’s largest mortgage lenders: Quicken Loans CEO Jay Farner. Farner took over as CEO in February 2017 after Bill Emerson was elevated to vice chairman of Rock Holdings, Quicken Loans’ parent company. In his previous roles, Farner was influential in the company’s technology growth, helping usher in the release of Rocket Mortgage, which turbocharged both the company’s business and the mortgage industry itself. As CEO, Farner continued the company’s focus on technology and on marketing, which enabled Quicken to become the country’s largest retail mortgage lender at the end of his first year in charge. Farner has also driven the company’s growth in its purchase business. According to the company, if Quicken Loans only originated purchase loans, the company would still be a top-five mortgage lender when compared to the total volume of other retail lenders. Under Farner’s leadership, in the past year Quicken Loans’ extended retail arm doubled its market share among those who work with credit unions, regional banks and mortgage brokers. The company said that this growth is due to its competitive pricing, superior technology and award-winning process. And the company expects all of that growth to continue into perpetuity.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “Don’t ever settle for ‘good’, good is the enemy of great.”
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “Always take on new opportunities without hesitation even though the outcomes are unknown or uncertain.”
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 43
2018 VANGUARDS
S
JOHN FRAAS
CHASE GILBERT
PRESIDENT
CEO
Class Valuation
Built Technologies
ince John Fraas took the helm of Class Valuation as president just over a year ago, the company has seen tremendous growth all while maintaining a positive work environment. Growing the company by 22% in such a short amount of time can have its challenges, but John’s commitment to his team is undeniable. Class Valuation won the “Cool Places to Work” award by Crain’s Detroit. This prestigious award only recognizes 100 companies in the Detroit metro area that go above and beyond in putting a focus on workplace culture. Fraas’s visible presence in the office and team-player mentality set him apart and have helped shape the positive company culture at the company today. Fraas puts it down to his hiring strategy: “It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” Fraas’s leadership led the company to receive four additional industry-recognized awards. He leads by example and prefers to be in the weeds of the business with his team. When he started at Class Valuation, he spent his first 90 days meeting each team member and sitting with each team learning the operations of the business. Fraas understands no one knows their job more than the people doing them, so there is no one better to find efficiency opportunities. The volume of appraisal orders has outpaced the amount of team members needed as the team has capitalized on many time saving initiatives. It should be noted that not only has the company become more efficient, it has also improved service levels.
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “Regularly stepping outside my office and sitting with the team - doing more listening than talking. I believe it’s critical to not be seen as intimidating so that the team feels comfortable approaching me with questions, comments, and concerns.” 44 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
S
ince launching in 2015, Built has more than tripled its client base to include over 50 banks across the country, ranging from $100 million to more than $120 billion in total assets. This year, the company reached a milestone, with its lender clients now managing more than $15 billion in construction loans using Built’s platform. Much of Built’s success can be attributed to its CEO, Chase Gilbert. Gilbert’s leadership propelled the company forward, earning serious interest from investors. In 2017, Built raised $21 million in a series A funding round, which enabled the company to accelerate growth, develop its team and bolster its investments. Through the efforts of Gilbert and his team, Built’s tech solutions are redefining business in construction lending. “This is an area of lending that has been underserved for far too long and we know we can change the way the world gets built by making it easier for capital to get safely deployed,” Gilbert said. This year, Built was the only construction lending software to be named an endorsed provider by the American Bankers Association. It was also an HW Tech100 winner in 2017 and 2018, was awarded Growth Stage Company of the Year in 2017 by Nashville Technology Council, received Best in Show at the 2017 Digital Lending conference, and named Judges’ choice at the 2018 Digital Banking conference. “Focus and simplicity,” Gilbert said, quoting Steve Jobs. “Simple can be harder than complex; you have to work hard to get your thinking clean to make it simple.”
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “As our company and platform continue to grow, the best piece of advice I’ve received is to never lose sight of that main goal when envisioning the future of our company.”
2018 VANGUARDS
T
LUCAS HANSEN
MATT HANSEN
CHIEF TECHNOLOGY OFFICER
CEO
Qualia
SimpleNexus
S
here’s a revolution afoot in the mortgage business, as more companies embrace digital closing. And one of the companies leading that revolution is Qualia, a real estate technology company that focuses on the home closing process. The company’s software brings all the pieces of a home closing into one platform, allowing consumers, lenders, title agents and real estate agents to securely coordinate the process in real time. Qualia has grown significantly since its founding in 2015, and now handles nearly 10% of the national real estate market. More than half of the top 100 mortgage lenders and real estate brokerages in the country currently use the company’s software. And the person leading the company’s technology efforts is Lucas Hansen, who has helped found the company while he was a senior at Stanford University and currently serves as chief technology officer. In that role, Hansen heads up the company’s engineering team and oversees the development of Qualia’s platform and products. The company has seen its market share increase rapidly in the last few years, as it expanded its platform nationwide in 2017 and has big plans for the future. In 2018, the company raised $33 million in its Series B funding round, which was led by Menlo Ventures with participation from 8VC, Bienville Capital and Barry Sternlicht. According to Qualia, Hansen’s team was critical to securing that funding. And now, it’s onward and upward for Hansen, Qualia and the digital closing revolution.
ince Matt Hansen founded SimpleNexus in 2014, the company has grown astronomically. What started out as a lark, creating a mobile app for his brother-in-law’s mortgage lending business, turned into one of the biggest names in digital mortgages. Under Hansen’s leadership, SimpleNexus was recognized as a 2018 Top 500 company by Inc. Magazine, checking in at No. 359 on the prestigious list. SimpleNexus achieved the recognition as a bootstrapped company, earning $3.9 million last year, and growing 1,405% over the past three years. The company was also named as one of HW’s Tech100 as one of the top technology companies in the housing industry. SimpleNexus offers a digital mortgage platform that allows loan officers to become “mobile originators,” using their smartphones to view applications, pull credit reports and oversee all aspects of the loan process while connecting in real-time to their loan origination system. Currently, 15 of the top 25 retail mortgage lenders are using the SimpleNexus digital mortgage platform, servicing more than 18,000 loan officers and 180 enterprise lenders nationwide. The platform has processed $100 billion in loan transactions, and more than 450,000 borrowers have used the SimpleNexus app to complete the mortgage process. And, all that growth led to a big injection of funding in 2018. Back in June, the company raised $20 million in capital from Insight Venture Partners to fuel its plans for the future.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “Willpower alone isn’t enough to succeed, because eventually you’re going to run out. You need to carefully craft your environment so that the default outcome is the desired one. Going with the flow is a great plan as long as the flow is going in the right direction.”
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “The most important decision you will ever make is who you marry.”
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 45
2018 VANGUARDS
M
TOBY HARRIS
SCOTT HARRIS
EXECUTIVE VICE PRESIDENT
FOUNDER AND CEO
Movement Mortgage
SocialSurvey
A
ovement Mortgage wouldn’t be the company it is today without Toby Harris, who helped found the company and now serves as executive vice president. These days, Harris helps set the direction and attitude for the company, in addition to tangible achievements like helping to open a new 100,000 square-foot operations center in Norfolk, Virginia for 500 employees and recruiting and coaching a sales force that originated $13 billion in mortgages in 2017. Truly, all one needs to know about Harris’ influence at the company is how highly Movement’s employees speak of him. “As a fresh, new 21-year-old in the mortgage business, Toby took me under his wing and mentored me,” Movement Chief Operating Officer John Third said of Harris. “I can remember vividly how nervous I would get as Toby would entrust me with new tasks and roles within the company,” Third said. “So many of those were followed up with a conversation in his office or over lunch with Toby starting by saying in a quiet voice, ‘Now son.’” Harris won’t talk about business successes. Rather, he says his biggest accomplishment is “investing in leaders at Movement Mortgage,” adding that his purpose is to “help them develop their vision through clear, strategic and effective goals to become leaders of impact and influence.” And beyond that, Harris also supervises Movement Foundation’s partnership with International Cooperating Ministries, resulting in the funding of one new church or community center building in developing countries every month.
s founder and CEO of SocialSurvey, Scott Harris utilized his experience in real estate, mortgage and technology development to launch his team into success. Harris, a visionary thinker, has led the company to deliver services for thousands of loan officers at over 130 lenders. In 2018, as consumers become increasingly interested in lender reputation, reviews of loan officers and lenders have become more critical than ever before. SocialSurvey has made collecting and sharing testimonials and reviews easy for thousands of loan officers at over 130 lenders. This past year, SocialSurvey closed deals with 72 lenders, comprising over 11,000 mortgage loan officers. The explosive success is a testament to Harris’ undisputed leadership. Not only has Harris cultivated an amazing company culture and team, but he has also built fantastic industry relationships. Harris brings investors and influencers together, creating relationships with many vendors and trade groups. Harris is focused on people and relationships. he is excellent at bringing his team together for a common goal. His talents are also in building fantastic industry relationships. Notably, the company plans to expand its client base in the real estate industry, partnering with big names like Zillow. SocialSurvey is also building a team to mark its entrance into the insurance agency sector, spurring its goal to reach 300,000 users by the end of 2021. Planning, refining, tweaking the product has led SocialSurvey to the point where it it today. Harris is the visionary for all of this.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “The secret to success is simple but often difficult for some people. First, you must develop a vision that is complete. Then, you must intentionally work to live out that vision until it is complete.”
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “SocialSurvey’s success is due to our attention to detail, focus on the customer, and building an awesome team that truly cares about the success of the customer.”
46 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
2018 VANGUARDS
D
DEBBY JENKINS
BOB JENNINGS
EXECUTIVE VICE PRESIDENT, HEAD OF MULTIFAMILY
CEO
Freddie Mac
ClosingCorp
B
eborah Jenkins, the new head of Freddie Mac’s multifamily business, is one of the architects behind the GSE’s success in the multifamily space, working hard to carve out market share over her 10 years with the company. Her fastidious approach to credit quality coupled with a dedication to premium customer service are two of the main reasons Freddie Mac Multifamily enjoys a 0.01% serious delinquency rate while holding a $286 billion portfolio. Under Jenkins’ leadership, Freddie Mac Multifamily holds only four delinquent loans out of more than 20,000. As a leader and innovator, much of Jenkins’ success comes from her willingness to break from the status quo while effectively communicating her vision with her team. For 2018, the goal was to maintain Freddie Mac’s brand and credit quality while maintaining high quality service, staying innovative in the market and properly mitigating risk. Jenkins’ innovation and risk management acumen are on display with Freddie Mac Multifamily’s “prior approval” underwriting model. She and her team underwrite every loan before committing to it, a commitment to excellence that protects a razor-thin delinquency rate. The prior approval model only works if the Freddie Mac underwriting team is performing the necessary due diligence and approving every transaction day-in and day-out. Jenkins is a working mother and is a role model for women in the workforce everywhere as she carved a place at the top for herself in an industry dominated by men.
ob Jennings decisiveness, adaptability and reliability are examples to all he encounters. As the chief executive officer of ClosingCorp, Jennings has guided the company to consecutive year-over-year financial growth, expanding its services to more than 300 lenders throughout the nation. Jennings is committed to leading an amazing team that delivers outstanding results. In order to ensure success in the workplace, Jennings implemented creative tools that increase productivity and provide understanding for individual preferences, helping team members effectively serve customers. Under Jennings’ leadership, Closing Corp has been awarded many achievements including being named a 2018 HousingWire Tech100 winner and a 2017 Ellie Mae “Lender’s Choice” Award winner. The company was also recognized as one of San Diego Business Journal’s list of 100 Fastest-Growing Privately Held Companies this year. Not only is Jennings regarded as a leader in the mortgage and real estate information industry, but he is sought after by many publications for his expertise in technology, closing cost analytics and mortgage lifecycle. This year, Jennings was a finalist for San Diego Business Journal’s Most Admired CEO. Prior to joining ClosingCorp, Jennings served as the executive vice president of RealEC Technologies. During his tenure, the company streamlined operations and grew revenues exponentially, moving from a niche player in 2006 to an industry utility leveraged by the top mortgage lenders across the country.
WHAT IS ONE THING YOU CANNOT DO WITHOUT? “As an underwriter, leader and colleague, I cannot do without transparency. For Freddie Mac Multifamily, if we’re surprising our investors, even our potential investors, we aren’t doing our jobs.”
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “I’ve been able to identify, develop and motivate strong leaders by creating a culture that values and rewards innovation, dedication and client focus. I’ve aligned myself with amazing people that are more skilled in areas that require expertise above my own and we believe in our overall vision.” HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 47
2018 VANGUARDS
M
MARK JOHNSON
SELENE KELLAM
PRESIDENT
EXECUTIVE VICE PRESIDENT OF OPERATIONS
LRES
Thrive Mortgage
F
ark Johnson, president of LRES, is and has been pouring the gas on his company’s growth fire with gusto. Johnson joined LRES more than a year ago as chief strategy officer, hit the ground running, and within his first 90 days built out the company’s one-, two-, and five-year plans to evolve with and excel in the valuation industry. He had three orders of business and wasted no time pursuing them. First, reset focus. On technology and next generation solutions. Second, improve data management, data security and compliance operations. Third, lay the foundation for growth with strategic acquisitions and optimized operations. His vision created momentum at LRES and led to the creation of a strategy to implement new tools to maximize productivity, nail down state, federal and emerging international compliance requirements, and expand LRES’ commercial appraisal and evaluation capabilities as well as its REO and asset management sector through mergers and acquisitions. In a quickly evolving industry rushing toward full digitization, Johnson will not be caught flat-footed. His motto is adaptability and resilience. Due to the success of his initiatives, Johnson was asked to lead LRES as its president less than a year after arriving there. Thanks to his work, LRES is a stronger company, better prepared for whatever changes the industry will throw its way. His success at LRES is a case study in contagious excellence, expert vision casting and grit.
or the last decade, Selene Kellam has been an integral proponent of the systems, processes and technology solutions at Thrive Mortgage. As the executive vice president of operations, Kellam is the company’s biggest champion in designing ways to analyze data and making operational adjustments to keep everything running as smoothly as possible. Kellam has guided the company to multiple firsts in the industry, including an eClosing initiative which led to Thrive Mortgage completing the first 100% digital mortgage in the State of Texas. Kellam was also the chief architect of Thrive Mortgage’s Quality and Efficiency initiative, which aimed to reduce loan origination time to an average of 18 to 21 calendar days. Kellam is a highly sought-after panelist and speaker at numerous industry conventions and special events. Most recently, Kellam participated in the Notarize “Trailblazers” Conference, Texas MBA Evolve Symposium and numerous other engagements across the country. As overseer of Post-Closing, Kellam also takes ownership of files with loan defects and has overhauled procedures within the company's post-closing department. She works closely with secondary to review the methods by which Thrive sells loans to investors as well as the loans sold directly to Fannie Mae, Freddie Mac and Ginnie Mae. Kellam says her greatest achievement is being a mom. Her passion for her family, engagement in the community and love for what she does every day, define her as a truly remarkable woman.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “Stay resilient. This goes back to my grandfather’s quote; basically, recognize that life is filled with challenges, learn how best to adapt to overcome those challenges. Adapt does not mean to capitulate but to find ways through, over, under or around the challenges.”
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “Don’t just ask those above you how you can improve, ask the people around you and the ones who report to you... Seek out their advice on how you can be a better leader. When you establish the right relationships, they’ll let you know.”
48 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
2018 VANGUARDS
A
MICHAEL KOLBRENER
MARK LADD
CHIEF TECHNOLOGY OFFICER
VICE PRESIDENT OF REGULATORY AND INDUSTRY AFFAIRS
PromonTech
Simplifile
s CTO at fintech hybrid PromonTech, Michael Kolbrener is the driving force behind the company’s product development. With a mission to solve complex challenges for mortgage lenders, PromonTech launched Borrower Wallet in 2017. The point-ofsale platform creates a shared workspace for lenders and borrowers, facilitating faster and more precise communication. In September, Kolbrener’s team debuted its latest offering, IncomeAI, an advanced income calculation engine that gathers data captured through Borrower Wallet and applies it to industry-standard formulas to calculate income. IncomeAI calculates more than 60 income types, including self-employed income, rental income from investment properties and even complex income types tied to assets such as asset-depletion or 401(k). PromonTech estimates it can save lenders up to 20% in underwriting time and costs. In his work to create innovative solutions for mortgage lenders, Kolbrener createe a transparent, efficient and digital experience for all parties involved in the mortgage process. His ultimate goal is to design technology that lenders and consumers can use to engage in faster, less expensive and higher-quality mortgage transactions. In his 20-year career, Kolbrener held executive IT roles at various technology consulting firms, where he helped develop and manage tech solutions for different facets of the lending space. As CTO, Kolbrener is inspired by Bill Bradley’s quote: “Leadership is unlocking people’s potential to become better.”
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “Taking risks. The most exciting and challenging technology solutions contain myriad risks. I’ve made a habit of taking on significant risks to build better technology, businesses and relationships.”
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hen it comes to advocacy and leadership, the real estate community has no greater ally than Simplifile’s VP of Regulatory and Industry Affairs Mark Ladd. Through his work with various industry organizations, Ladd has been able to keep his finger on the pulse of federal, state and local initiatives. Ladd played a key role in the GSEs’ decision to accept electronically recorded security instruments, eliminating an additional barrier to digital mortgage adoption. Prior to working with Simplifile, Ladd served as the vice chair of the residential governance committee for the Mortgage Industry Standards Maintenance Organization. Ladd was also the technology coordinator for the Property Records Industry Association, where he was instrumental in the development of the PRIA eRecording XML standards. Ladd’s personal philosophy has always been: “The world is run by those who show up!” He remains active throughout the mortgage industry, serving as president of the PRIA Board of Directors. Ladd is also a member of several American Land Title Association committees, including the Title Industry Political Action Committee, Congressional Liaisons Committee and the Real Property Records Committee. The depth and breadth of knowledge Ladd possess regarding real estate made him an invaluable asset to the industry at large. In the past year, his efforts have included participating as a panelist for the MERS User Conference eMortgage Boot Camp and moderating at the PRA 2018 Winter Symposium.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “It’s easier to turn the wheels on a car that is moving than one that is standing still. Move ahead but be willing to change directions.”
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 49
2018 VANGUARDS
HEATHER LOVIER
SHELLEY LEONARD
EXECUTIVE VICE PRESIDENT OF CLIENT EXPERIENCE OPERATIONS
EXECUTIVE VICE PRESIDENT AND CHIEF PRODUCT OFFICER
Quicken Loans
Black Knight
H
A
eather Lovier’s job is to ensure that every Quicken Loans client has an amazing experience – no small task when you’re talking about one the nation’s largest lenders. Lovier leads two teams – the client experience team and the operations group. The operations team is responsible for mortgage processing and underwriting, doing everything possible to get a loan to closing. The client experience team comprises multiple groups – the communication team, the client relations team and the servicing client experience team – which all work together to enhance the customer experience. Lovier’s leadership is essential to the harmonious collaboration between all teams as they work toward their mutual goal. The group has defined the core values that drive its daily operations – care, accountability, visibility and support, which it calls the CAVS philosophy. By promoting the CAVS philosophy among her team, Lovier keeps them focused on their main priority, which is to show clients how much Quicken Loans cares. She also emphasizes the need to apply CAVS in their interactions with each other, encouraging positive feedback and peer coaching to help the team grow and improve. For the past eight years, J.D. Power named Quicken Loans the highest in Customer Satisfaction for Primary Mortgage Origination. The Quicken team credits this distinction to Lovier’s leadership. Her team members applaud her for challenging them to reach beyond their comfort zones.
s EVP and Chief Product Officer for Black Knight, Shelley Leonard is responsible for defining Black Knight’s product strategy and working with each division within the company to develop a comprehensive product roadmap across the enterprise. Earlier this year, Black Knight announced the delivery of Servicing Digital, an interactive, mobile solution through which servicers can offer their customers the convenience of anytime/ anywhere access to information they want to know about their loans. Additionally, Leonard's deep industry insight, system expertise and ability to deliver were critical to the success of this company-wide initiative. She developed the solution plan, identified resources, engaged with clients and proactively addressed any issue that presented itself during the execution of this initiative. After Leonard presented a demo of Servicing Digital at the 2018 Digital Mortgage Conference, attendees selected Servicing Digital as a finalist for their favorite product. A panel of mortgage industry experts at the conference also chose Servicing Digital as an award winner, based on its score for the judges’ views of product demand, market potential, degree of innovation and showmanship of the demo. Leonard regularly hosts company-wide town halls to present Black Knight’s product strategy roadmap, so all employees can remain updated about where the organization is directing efforts and which initiatives are most pressing to accomplish, so that the company is united in its focus.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “Leading from the heart. It doesn’t make you a soft leader, but a compassionate one. You are able to be transparent with those you lead by sharing past experiences and having the tough conversations that a lot of leaders struggle with.”
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “The best advice I ever received was demonstrated, rather than spoken. Midway through my career, I had the opportunity to work for a well-known, important executive within our company and the mortgage industry with many years of experience. He showed me through example to always be my authentic self.”
50 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
2018 VANGUARDS
D
DAVID LYKKEN
SANJEEV MALANEY
FOUNDER AND CHIEF TRANSFORMATIONAL OFFICER
FOUNDER AND CEO
Transformational Mortgage Solutions
Capsilon
O
avid Lykken is a renowned, go-to expert for all things mortgage lending and fintech. Over the course of his more than 44-year career in the mortgage industry, he has demonstrated that his vigorously innovative and entrepreneurial industry leadership is second to none. Since 2001, Lykken has been coaching early stage lenders and mortgage banking behemoths, first as co-founder of the mortgage consultancy firm, Mortgage Banking Services, and currently as sole founder and chief transformational officer of Transformational Mortgage Solutions. Lykken’s advisory services have been an indispensable resource for mortgage lenders that are facing overwhelming and seemingly insurmountable obstacles by providing encouragement, advice and strategic planning that repositions them from surviving to thriving. Over the past year at TMS, Lykken has grown the firm, bringing on company president Beth Ozenghar. He and his team have helped shave 12 days from closing times at a West Coast lender; helped a Midwestern, independent mortgage lender drive-down time-to-close and cut training costs in half; and helped countless other lenders “change their stinking thinking” to increase bottom-line profitability. Perhaps the highlight of his consulting career is the critical role he played as a trusted advisor success to Movement Mortgage Founder Casey Crawford. In the midst of the 2008 market downturn, Lykken coached Crawford through the launch and directional strategy of Movement, now a top 10 lender.
ver the last year, founder and CEO Sanjeev Malaney paved the way for Capsilon to help mortgage companies build the next-gen operating model with the launch of Capsilon IQ, a mortgage automation engine that uses data and AI to automate manual tasks and enable faster decision-making. Under Malaney’s leadership, Capsilon and its technologies have transformed the way mortgage companies do business. More than 160 mortgage companies rely on its flagship product, DocVelocity, for critical business operations, and according to the company, 15% of mortgages touch the system annually. Malaney’s intimate understanding of the problems that automation can solve drove Capsilon’s evolution from DocVelocity to Capsilon IQ, a data-driven mortgage automation engine that increases productivity and makes systems more powerful. Under Malaney’s leadership, the company also grew nearly 20% to more than 450 team members and saw a revenue increase of 29%. As a successful fintech company backed by Francisco Partners, a top tech private equity firm, Capsilon has a global presence in the U.S., Belarus, India and Poland. Whenever Malaney visits each office, he leads product roadmap discussions and makes time to check in with employees to offer his insights and guidance. Malaney is passionate about helping to create a mortgage industry that has less systemic risk, is simpler and less expensive for everyone. His enthusiasm for reinventing the mortgage industry is felt throughout the company, and the employees are obsessively focused on building intelligent tools to solve mortgage companies’ biggest pain points.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? David’s favorite advice is embodied in Winston Churchill’s famous quote, “Never, never, never give up.” David is passionate about working with his team at TMS to help lenders overcome the many challenges presented by mortgage banking.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “What drives our success and the north star for me and my team is defined by a simple acronym that defines how we work: G, we lead with gratitude; R, we drive rapid results for our customers; O, we take ownership over outcomes, and W, we innovate with wonder.” HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 51
2018 VANGUARDS
S
SUNDEEP MATHUR
STANLEY MIDDLEMAN
VICE PRESIDENT, BUSINESS CONSULTING
CHAIRMAN & CEO
Tavant Technologies
Freedom Mortgage
A
undeep Mathur was instrumental in launching a Digital Lending Consulting Practice at Tavant Technologies. This helped lenders achieve a 40% reduction in operating costs through effective alignment of business and technology strategies and adoption and implementation of leading edge technologies which include AI/ML and RPA. Mathur has held leadership roles in the lending technology arena for almost 30 years. As part of the original team at Freddie Mac in building Loan Prospector, Mathur played an instrumental role in helping the adoption of automated underwriting with top lenders. At Tavant, Mathur has been focused on driving change within the consumer lending industry. Today, he warns that businesses are sometimes misguided thinking acquiring a technology will drive results. “I believe we are at a unique inflection point in our industry where those of us that represent a bridge between technology and the business need to step-up and focus on squeezing the most out of maturing technology and innovate our dated processes and somewhat stoic industry,” he said. Mathur heads the team that has helped customers in adoption of technology, which is actually the catalyst that drives cost savings and growth. Mathur has helped lenders adopted Tavant’s leading AI enabled leading POS solution FinXperience to move the lending decision from the fulfillment, to earlier in the lending process. Enabling customer to deliver a true lending decision at Point of Sale. Ensuring a higher degree of borrower satisfaction and a better experience for the loan officer and broker.
s the chairman and CEO of Freedom Mortgage, Stanley Middleman is undoubtedly one of the biggest names in the mortgage business. In addition to leading one of the nation’s largest full-service mortgage bankers, Middleman also serves in leadership roles throughout the industry. Middleman led Freedom Mortgage to a path of stability through organic growth and strategic acquisitions. Freedom’s mortgage servicing business has grown by 150% over the past 18 months, an achievement that moved the company into one of the top 15 largest servicers nationwide. The company also raised more than $1.8 billion in the public debt markets during that time, and spent the money on various assets that contributed to its growth. Freedom opened a new, 25,000-square-foot office in Tempe, Arizona, after outgrowing its Phoenix branch. The new office is home to 240 employees and has space for 100 more. And as for Middleman himself, he just completed his first year on the Mortgage Bankers Association’s Board of Directors as well as his first year on the MBA’s Residential Board of Governors, which is responsible for establishing legislative and regulatory policies and positions on residential lending issues. In addition to his roles with the MBA, Middleman is also a member of the Housing Policy Executive Council, an affiliate of the Financial Services Roundtable that advocates for the benefits of a fully competitive and integrated housing market, and the National Association of Hispanic Real Estate Professionals Corporate Board of Governors.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “I believe my success is directly attributable to growing and nurturing individuals. I seek out people who demonstrate strength in their character, the rest I can teach them. I can support these teammates to capitalize on their strengths and help them mitigate their weaknesses.”
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “Every day, I simply try to put one foot in front of the other. I don’t think I’ve ever reached the highest of the highs or the lowest of the lows. Paying attention to the details, taking things step by step.”
52 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
2018 VANGUARDS
A
WARD MORRISON
SUNG PARK
PRESIDENT
SENIOR VICE PRESIDENT, PRODUCT DEVELOPMENT
Motto Franchising
Calyx Software
s president of Motto Mortgage, Ward Morrison is responsible for the growth strategy of the franchise brand. Under Morrison’s leadership, Motto Mortgage has been named among the top 1% of fastest-growing emerging franchises in the United States. Morrison is responsible for leading, managing and oversight of franchise sales, on-boarding, training and ongoing support of the franchise network. In the last 12 months, Motto Mortgage has grown office franchise sales from 50 to almost 100 offices. Furthermore, in less than 23 months of operation, the company has managed to establish more than 60 offices. Morrison encourages personal growth as well. This past year, Morrison oversaw the complete creation and modification of the Motto 101 training, which provides franchise owners and brokers with the tools they need to grow their businesses. The training takes place three days a month, and provides the opportunity for a new Motto Mortgage office broker owner or loan originator to learn about the ins and outs of the company, as well as all the compliance components very quickly. Morrison explained that leadership must be agents of change every step of the way, as unexpected curveballs are a daily occurrence. Morrison also developed key franchise and mortgage industry relationships, driving branding, marketing and operational design for the collaborative implementation of the new mortgage brokerage franchise model system.
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “Being relentless. Creating a new franchise system is, at its roots, creating a startup. The entire company needs to be able to adapt on the fly, in a create-fast, fail-fast, fix-fast cycle.”
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ince joining Calyx in 1997, Sung Park has made significant technology contributions to the mortgage industry, developing many tools for consumers. As the senior vice president of product development at Calyx Software, Park was responsible for the design and development of Calyx’s premiere origination system Point, which has grown to host more than 60,000 users. Park also led the development of the company’s WebConnect platform, which enables brokers and bankers to send and receive loan data with a network of interfaced service providers without leaving its Point platform. He also managed the team that developed Path, Calyx’s dynamic, cloud-based LOS designed for mid-tier to large, enterprise-level financial institutions. Over the last year, Park has led the design and development of Calyx’s newest solution, an interview platform called Zip. Since Zip launched in February 2018, the product has been adopted by mortgage professionals across 45 states, boasting a 76% completion rate for borrower loan interviews. The solution allows potential borrowers to start the loan application process online or via any mobile device. It also answers questions about users’ unique situations, improving borrower experience and helping loan originators better understand borrowers’ preferences. By using Zip, brokers and lenders can level the playing field with enterprise-level, online lenders and do so at a fraction of the cost.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “Know your strengths and weaknesses. Build a team that excels in areas where you may not, learn from them and enable them to succeed. Do not cap your team at your own limitations.”
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 53
2018 VANGUARDS
A
ADAM SAAB
MICHAEL SCHRECK
CHIEF OPERATING OFFICER
CEO
LoanCare
Cloudvirga
M
dam Saab is responsible for operating the third largest subservicing company in the US. Saab is a veteran of the mortgage industry, holding positions such as dirictor and senior vice president of operations at Citi Bank and senior vice president of operations at PNC. At LoanCare, Saab helped increase business and products serviced to more than 1.2 million loans. As the COO, he also re-engineered the organization’s structure, while recruiting and developing key leaders to set LoanCare up for success. So what did some of those changes look like? Saab made LoanCare a place with a defined company culture; it became a better place to work through a relaxed dress code, work from home opportunities and ongoing leadership communication that everyone finds fun and engaging. Saab said self-reflection led to his professional approach: “One of the most important leadership lessons is realizing you’re not the most important or the most intelligent person in the room at all times,” he said. On the more technical side, Saab helped to transfer an already regulatory compliant company, to better ingest more complex products with heightened regulatory and compliance requirements. He also improved client communication and responsiveness to issues through direct access to senior leadership, resulting in feedback from some clients that “LoanCare is quickly becoming best in class.” Saab also opened a third servicing location, hiring “top notch talent.”
ichael Schreck is inspired by Gandhi’s quote, “Be the change you wish to see,” a fact that is evident in the success he has generated in the 20-plus years he has worked in technology. When Schreck took on the role of CEO of Cloudvirga in 2017, he swiftly secured more than $50 million in private equity funding and brought on an all-star leadership team, recruiting top-level executives of Microsoft, Dell, Intuit, CoreLogic, Fidelity and First American. Under Schreck’s leadership, Cloudvirga has reached a number of milestones, including increasing loan officer adoption among its existing customers by 40%; proving its ability to reduce mortgage origination costs by $1500 per loan; helping lenders increase same-day loan pull through by 11%; and processing more than $15 billion in loans. This is all thanks to the Harvard Business School grad’s pioneering insights into how technology can transform and improve the mortgage industry, something he has focused on for the better part of a decade. He also co-founded General Catalyst Partners, a multi-billion-dollar venture capital firm where Schreck helped develop successful startups including Upromise, SmartBargains, m-Qube and CoreMetrics. Collectively, these companies were acquired for over $1 billion by SLM, GSI Commerce, VeriSign and IBM, respectively. Schreck started his career as a strategy consultant at McKinsey & Company and Monitor Company.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “My success is identifying my areas of opportunity and surrounding myself with the right leaders to fill those gaps. I learned early in my career that I don’t have to be an expert in all things that I do. If I have the right team, together we can accomplish great things.”
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “When I decided to leave strategic consulting for a startup, some of my colleagues thought I was leaving a promising career. But one of my senior partners put it in perspective, saying, “Go and find out.” This advice expanded my view, suggesting that action trumps perfect analysis.”
54 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
2018 VANGUARDS
F
FAITH SCHWARTZ
STEVE SMITH
OFFICER/PRESIDENT, BOARD OF DIRECTORS
CO-FOUNDER AND CEO
FormFree
Finicity
aith Schwartz is a board member and acting president of mortgage fintech firm FormFree. And while she has implemented impressive strategies to facilitate the development and growth of FormFree, her list of accolades includes so much more. In 2007, Schwartz was recruited to the position of executive director at HOPE NOW – an organization formed by the Housing Policy Council – where she assembled a coalition of government agencies, lending institutions, investors, nonprofits and housing trades to provide relief to millions of homeowners during the housing crisis. She also founded a nonprofit consumer portal called HOPE LoanPort, which brings together consumers, HUD-certified housing counselors, mortgage lenders, servicers and investors to help homeowners apply for loan modifications and avoid foreclosure. At FormFree, Schwartz has helped expand and diversify its customer base and engage with the GSEs and other credit investors to broaden the company’s focus in several asset classes in financial services. Schwartz was also named one of HousingWire’s 2012 Women of Influence and is a recipient of a lifetime achievement award from the Five Star Institute. Schwartz established a federal business practice and government affairs office in D.C. as an executive at CoreLogic. She has also made multiple appearances on C-SPAN, Washington Journal and Fox News, and has testified on housing at numerous congressional hearings.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “The best thing a leader can do is be a resource for the company. Find out what people need and give it to them. Shift the hierarchy to drive ideas and accountability to the people performing the functions. I believe in being kind, honest, authentic and accountable.”
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teve Smith and Finicity are helping to lead an industry-wide transformation in underwriting, away from manual and towards digital. Smith co-founded Finicity and serves as the company’s CEO. Finicity developed and deployed a variety of products for the mortgage lending industry, including the company’s Verification of Assets and Verification of Income solutions. According to the company, digital verification has the potential to cut the underwriting process from as many as 70 days to 10 days, while making it easier on both the borrower and the lender. Over the past 12 months, Finicity announced integrations of its asset verification solution into the digital lending platforms of 11 key industry players: Capsilon, SimpleNexus, Lender Price, Mortgage Cadence, Blue Sage, BeSmartee, Ellie Mae, Advanced Data, MortgageHippo, Black Knight and DataVerify. And the company expects more of these types of arrangements to come in the near future. Finicity was also chosen to participate in Fannie Mae’s pilot for Single Source Validation, which is an enhancement to the Desktop Underwriter validation service that leverages bank account data collected via a single asset report to validate income, assets and employment. Finicity inked direct data exchange agreements with two major banks: USAA and Capital One. Last year, the company signed similar deals with Chase and Wells Fargo. Finicity was honored as one of the 2018 HW Tech100, an award reserved for the housing industry’s top technology companies.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “Truly becoming an agent for innovation and change requires that you understand market disruptions and gather data while always trusting your instincts and gut. Most times, you have to press forward and ignore the noise, naysayers and entrenched thinking, and you almost force your will on change.” HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 55
2018 VANGUARDS
OLUMIDE SOROYE
MICHAEL STEER
MANAGING DIRECTOR OF PROPERTY INTELLIGENCE AND RISK MANAGEMENT
PRESIDENT
CoreLogic
A
Mortgage Quality Management & Research
lumide Soroye is a champion of innovation, dedicating his efforts to bettering the housing market with the implementation of data and technology. In fact, Soroye has worked on several projects that have focused on developing solutions to build a better future for families across the globe. As the managing director of the property intelligence and risk management segment at CoreLogic, Soroye leads multiple teams across six divisions, equating more than 1,000 employees. Soroye works in segments that include data, analytics and science intensive businesses. Through his projects, Soroye is responsible for an overall profit and loss of nearly $1 billion. In the last year, Soroye has worked on many projects, including Hazard HQ, which is an online publicly-accessible risk information resource center that provides analyses and data insights on the immediate risks natural catastrophes pose to properties. Soroye has also led the company in a variety of partnership agreements, ensuring CoreLogic stays on the leading edge of industry technology. As the U.S. faced an onslaught of natural disasters over the past year, Soroye worked with banks, CoreLogic customers and even government agencies to reduce natural disaster reconstruction costs. Soroye has a true passion for the industry and is dedicated to helping people gain the knowledge and information needed to obtain housing.
relative pup himself, Michael Steer is leading Mortgage Quality Management & Research into the next generation by hiring a diverse workforce that’s ready to charge into the future. Steer, who serves as MQMR’s president and turns 35 in late 2018, believes in a “hire the best” philosophy, a method that’s led the company to hire from different age ranges and backgrounds. Nearly 80% of MQMR’s workforce is female, and more than a third are minorities. Additionally, the age range of the company’s employees stretches from 21 to 63. This year, Steer implemented Officevibe, an internal, anonymous survey platform, to allow MQMR employees to provide direct and honest feedback on the organization and offer suggestions on how the work environment can be improved. Steer is also helping the counterparty risk management and compliance advisory firm grow significantly. In the last year, MQMR completed more than 25 on-site servicing and document custodian audits; more than 1,700 vendor reviews; more than 200 originator reviews; and more than 10,000 loan-level servicing audits. This year, Steer participated in the California MBA’s recent webinar on internal audit and presented on the topic of servicing at The Mortgage Collaborative’s 2018 Summer Conference. Additionally, Steer led the charge on MQMR’s philanthropic efforts this year, which include a volunteer day at Camp Impact, a camp for underprivileged children, and the company’s internal “MQMR Goes Pink for Breast Cancer Awareness” campaign.
WHAT’S THE BEST ADVICE YOU’VE EVER RECEIVED? “There are no secrets to success. Choose what success means for you. Then show up, work hard, keep learning, stay humble, believe something, respect all and hope for a good dose of good luck along the way. When the road gets rough, persevere, keep calm and carry on.”
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “Constant education, professional development and growth – there is always something, or someone, you can learn from, which is why you should always surround yourself with people smarter than you and to hire the best available.”
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56 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
2018 VANGUARDS
J
JEFFREY TAYLOR
WILLIAM TESSAR
CO-FOUNDER AND MANAGING DIRECTOR
PRESIDENT
Mphasis Digital Risk
Civic Financial Services
effrey Taylor, co-founder and managing director at Mphasis Digital Risk, has had a banner year at Mphasis. In the last year, Mphasis rolled out its digital mortgage platform LoanFx, joining the fight on the frontlines of the push for innovation in the mortgage industry. Under Taylor’s leadership, Mphasis has been able to garner a major partnership with CitiMortgage through which LoanFx is now integrated with all of CitiMortgage’s digital channels. The new technology allows clients to go from mortgage application to underwriting to approval in as little as 20 minutes. The system provides real-time updates through the process to loan officers, their clients and their realtors and drastically cuts the time spent in the entire mortgage process. This year, Taylor also made major hires to bolster its diligence services division in anticipation of growing demand from asset managers for mortgage-linked securities and lenders’ need to assess the quality of their loan portfolios. Taylor’s modus operandi is to cultivate a company culture that fosters the highest level of team work in the pursuit of absolute excellence. Taylor is passionate about the entrepreneurial spirt, searching for what is worth taking risks and pursuing those things. Whenever he speaks to young people, he tells them they need to believe in themselves and pursue big goals. He believes that when you find something you are passionate about, it is important to believe in yourself enough to take an entrepreneurial risk to chase success in that passion.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “The “secret” to my success is less a secret than a time-tested formula: It’s searching for what you’re passionate about and believing in yourself enough to take entrepreneurial risk.”
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illiam Tessar hasn’t even been with Civic Financial Services for two years, but he’s had an enormous impact with the private money lender in that very short amount of time. As president, Tessar has helped to grow the company by increasing production by 150% over the past 12 months. Tessar is responsible for a nearly 400% increase in employee headcount, and has expanded CIVIC by opening four new branch locations throughout the U.S. The company is currently licensed in 15 states, and plans to have CIVIC enter five more states by the end of 2018. And beyond those efforts, Tessar also led the company’s launch of its consumer-facing portal, as well as the CIVIC’s expansion into multifamily lending. Tessar also played a critical role in CIVIC closing a $190 million securitization - believed to be the largest known securitization pool in the history of private residential money lending. While leading the company’s growth, Tessar also fosters an environment of collaboration and cooperation. The company implemented a “Top Gun” training program, which helps groom new talent for the private lending industry. In the program, candidates are provided with resources, paid training in a team-based and competitive environment, and one-on-one time during which every facet of mortgage lending is taught. That approach led to Tessar being ranked in the top 10 company leaders in Glassdoor’s annual rating of small and medium-sized U.S. companies.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “The secret to my success is a combination of being competitive by nature, having an incredibly hardworking father, putting others first, and always having goals.”
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2018 VANGUARDS
R
RICK TRIOLA
ALI VAFAI
FOUNDER AND CEO
PRESIDENT
NotaryCam
The Money Source
A
ick Triola is as pioneer in the field of digital mortgages. Some might even say he is the founding father of remote online notarization and remote online closing. Triola launched a real estate technology company, Settleware Secure Services, in 1999, and that firm grew to become the leading provider or eSigning, eNotarization and eRecording services for the real estate and mortgage industries. NotaryCam made several major advancements under Triola’s leadership, including expanding its footprint to all 50 states and more than 70 countries and earning the endorsement of title underwriters, the National Association of Realtors, Fannie Mae and Freddie Mac. Triola is extremely active within his industry, serving on the Mortgage Bankers Association Industry Standards Maintenance Organization committee, through which he helped shape industry policy. He is also a member of the Electronic Signatures and Records Association, the American Land Title Association, the Virginia Land Title Association, the Texas Land Title Associate and the California Escrow Association. Triola is a founding member and former president of the ItalianAmerican Sports Hall of Fame in New York, and he also serves his business community of Newport Beach. Triola is passionate about giving back to military service members and veterans, creating NotaryCam’s annual “Help a Hero” initiative, now in its sixth year, which offers no-cost notarizations to U.S. military veterans and active service members every Memorial Day weekend.
li Vafai believes that when developing technology, you must put yourself in the end-user’s shoes and imagine their experience first. It is this empathetic philosophy that has propelled him to create TMS’ revolutionary tech solutions for the mortgage world. As TMS’ president, Vafai’s technological know-how has redefined business for the lending industry, putting the customer at the center of the transaction, rather than a sidelined participant left feeling out of the loop and uninformed. Vafai led the development of the award-winning subservicing platform SIME (Servicing Intelligence Made Easy), which gives lenders real-time access to their assets. He is also the architect of TMS’ recently launched Happinest Mobile app, a digital servicing app designed to reconstruct the homeowner/servicer relationship by elevating communication and putting the borrower in the driver’s seat. Happinest Mobile enables the borrower to upload and submit loan documents directly from their mobile phone, a first for the servicing industry. Vafai has also worked on elevating TMS’ proprietary loan originating system, KISS (Keep It Super Simple), updating it with enhanced features to make it more seamless and user-friendly for TMS customers. Vafai’s mission is to create an enjoyable and intuitive user experience, a driving factor as he works to enhance and expand TMS’ technology, ensuring that it aligns with the company’s corporate goal to “help grow happiness.”
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “The secret to my success is plain and simple: hard work – grinding it out on the field while most folks don’t even know the game is being played.”
WHAT ONE HABIT HAS MADE A CRUCIAL DIFFERENCE IN YOUR SUCCESS? “Be a part of the company! Understand that real-time immersion into your company keeps it moving forward, and by doing this, you’re able to create the most innovative and game-changing solutions for the borrower.”
58 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
2018 VANGUARDS
A
AL VELASCO
JOHN WARREN
EXECUTIVE VICE PRESIDENT, WESTERN REGION
FOUNDER AND CHAIRMAN
PrimeLending
Lima One Capital
l Velasco is an industry veteran with more than 26 years of mortgage experience whose intangibles and strengths have contributed to PrimeLending’s success. Under his watch, the company has been able to expand its presence rapidly. In 2018, Velasco led the company’s branch expansion initiative to open 31 branches and add 250 producers. Velasco is all about building a top-quality team, unconcerned with being the smartest person in the room and wholly concerned with having the smartest people in the room pushing PrimeLending forward. To that end, Velasco has retooled the hiring process for retail mortgage lenders at PrimeLending with a philosophy centered on growth and the desire to take initiative to pursue excellence. Velasco cultivates an “owner” mentality in his team, pushing team members to leave complacency behind and take ownership of their futures and legacies along with the company’s success. His methods get results, and under his watch, PrimeLending’s Pacific Northwest operations went from generating virtually no volume to $1 billion-plus per year. Velasco’s efforts have also resulted in higher retention rates for employees and loan officers and nearly perfectly satisfied customers. Imbued with the mandate of ownership, Velasco’s team of go-getters has won the favor of its customers and earned a 96% customer satisfaction rating. Velasco has created change at PrimeLending not through chest thumping, but by empowering his team to become stakeholders on a mission to chase excellence with everything they’ve got.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “Surround yourself with great people and let them do their jobs. I am not concerned about being the smartest person in the room, I am concerned about having the smartest people in the room. Leadership is about collaboration.”
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hon Warren is the founder and chairman of Lima One Capital in Greenville, SC. Warren spent four years and 300 combat missions in Iraq and Afghanistan as an infantry officer with the United States Marine Corps. While deployed, he was decorated for “valor” and “heroic achievement” as he “led a counter attack against insurgents attacking Observation Post Virginia.” Upon his return, he founded Lima One Capital and has grown the company to one of the largest real estate investor lenders in the United States. He built a company that has been ranked consistently as South Carolina’s Most Ethical Company. In 2014, Lima One was recognized as the Fastest Growing Company in South Carolina and Best Places to Work in the state. The company raised more than $1 billion in capital from institutional investors. When it comes to his staff, Warren likes to think outside the box: “The key to building a great company is hiring great and diverse people who share the company’s vision based on their core values, work ethic, and core strengths - not because of their industry experience. In 2018, Warren saw a need to share his personal ideas and message of leadership and progress with the citizens of South Carolina by running for the Republican nomination for governor. After a hard-fought political campaign and taking the incumbent governor to a hotly contested runoff, he came up just shy of winning the nomination but left South Carolina with a stronger spirit and expectation for leadership in their next governor.
WHAT HAS BEEN YOUR SECRET TO SUCCESS? “In every employee I’ve hired, I have prioritized core values and competencies over pure industry sector experience. I can teach you the market, core values are intangible.”
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GREATER PROFITS
BLOCKCHAIN AND THE
DEMOCRATIZATION OF MORTGAGE DEBT
By Rick Roque and Debbie Hoffman
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ver the course of the past decade, there have been several disruptors in the mortgage industry – advances that include eNotarization, desktop underwriter, Day 1 Certainty and, of course, the digital loan application process. All these improvements have a common factor in that they streamline the mortgage process and ultimately improve the customer experience. The next step to advancement lies with utilization of blockchain technology. This nascent technology will take all these measures and truly transform the industry from paper to digital, resulting in transparency, better data security and higher revenues from operational efficiencies. The advent of enterprise blockchain technology has been making its way through a multitude of industries due to the protocol’s attributes. These characteristics can enhance almost any business which has the following factors: a supply chain, continued use of similar data, need for transparency and an exchange of money – or really value – leading to liquidity. The mortgage industry is no different. Particularly, however, blockchain technology has tremendous potential in transforming capital markets – both globally and nationwide. There are a multitude of methods by which blockchain innovation can be applied to the capital markets industry for benefits across this financial services sector. EXPLAINING BLOCKCHAIN Blockchain, a subset of distributed ledger technology or DLT, is essentially a methodology of storing and tracking information on a series of blocks which together form a
chain of blocks and resemble a ledger. This ledger is not stored on one server, but on a decentralized database which includes a multitude of computers, or “nodes.” One of the benefits of such a decentralized database is that it sets a higher standard for a cyberattack due to the fact that more than 51% of the computers would have to be simultaneously hacked for such an attack to occur. Furthermore, the decentralized storage of information allows for peerto-peer business; this means information can be obtained more directly and there may not be a need for a middleman or facilitator of payment or data. Blockchain protocols also allow for the simultaneous transfer of value (equivalent to money) via electronic currency – sometimes referred to as tokens or cryptocurrency. This could lead to easing of liquidity so long as there is enough supply and demand. Another important benefit of the technology is that data that is entered into a blockchain-based platform can be accessed simultaneously by all users who are given rights to enter the ledger. Data points on a blockchain are therefore retrieved by the user directly from the protocol, as opposed to having to transmit this data among parties. Due to the way the blockchain is architected (in what is called “consensus protocols,” one of which, for example is “Proof of Work”), there is no risk that data could get altered during transfer. A blockchain has an “append only” feature. This means that information entered onto a blockchain is time and data stamped and cannot be erased. Changes to such information occur in the form of amendments added to the blockchain. If data is entered onto a blockchain and checked for accuracy once, it need not be checked again and the data then contains a single source of truth. Furthermore, blockchain ledgers can be architected in a manner which allows for complete transparency as to who accessed it and when. This results in a comprehensive audit trail without the need to recreate. The characteristics of blockchain make it an extremely useful emerging technology which continues to improve each day. As such, a number of new blockchain-based protocols have emerged in the first half of 2018 focusing on capital markets. It is likely that the industry will continue to see these initial protocols develop and new blockchain based platforms emerge which will allow for a complete transformation and improvement in the capital markets process. CAPITAL MARKETS TODAY Capital markets is a broader term associated with a financial ecosystem made up of financial institutions whose focus is to raise or sell capital by dealing with shares, bonds and other longer-term investment vehicles. Capital
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markets are primarily composed of two different and distinct market sectors: the equity market and the debt market. In the context of the mortgage industry, financial assets (debt) held by mortgage institutions acquired and then traded into asset backed securities. The equity market generally includes stocks, while the debt market includes bonds. Moreover, several different financial institutions operate in capital markets, including stock exchanges, commercial banks, various types of corporations, insurance companies and mortgage banks. A highly liquid capital market is a market that both rapidly and consistently trades in either debt or equity. Mortgage capital markets is a complex, relationship-driven process that is vital to replacing capital and increasing revenue margins by mortgage companies. Within this realm, when a mortgage loan funds, it gets pooled with other mortgages of the same risk pool – the risk is broken down by credit score, ZIP code, loan-to-value ratio and debtto-income ratio. Such risk factors are mitigated via the rates assigned to the mortgages and the product types. Larger mortgage lenders will create a pool of their own loans of var-
ious risk buckets, and then are sold as a mortgage-backed security to investors. The largest mortgage investors are Fannie Mae and Freddie Mac. They set guidelines to direct mortgage originators on how loans should be underwritten. This is to control the risk and valuation of loan pools. How loan level risk is quantified is intimately connected to how familiar loan aggregators are with the information associated to all aspects of the real estate and the borrowers. The more investors know about the details of the mortgage and borrowers, the better for the investor to assess risk and assign a suggested price or bid on the mortgage pool. Traditionally, investors have been limited by the access and visibility of mortgage debt across the United States. More information provided to investors yields a higher confidence assessment in their investment. The greater the confidence, the more investors will pay for mortgage pools. The access and visibility to loan and borrower level details have largely been limited by technology aggregation and distribution factors; blockchain is uniquely organized across industry verticals to safely organize, secure and make accessible to potential investors.
THE ADVENT OF ENTERPRISE BLOCKCHAIN TECHNOLOGY has been making its way through a multitude of industries due to the protocol’s attributes. These characteristics can enhance almost any business which has the following factors:
a supply chain, continued use of similar data, need for transparency and an exchange of money – or really value – leading to liquidity.
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INTEGRATING BLOCKCHAIN Blockchain technology, if integrated into use by capital market firms, can provide efficiencies and other benefits due to the central, permanent and accessible nature of the technology and related smart contracts. Specifically, the technology could help with processes in the trading of loans or bundles, reporting, compliance and credit risk management. Trading Blockchain technology can be used by firms in the secondary market to source loans and perform due diligence. Using the technology alleviates the need to transfer data and allows for a central depository where buyers and due diligence providers are given permissioned access to the loan level data. Most importantly, using blockchain allows for the same access to transparent data to be accessed by all parties involved during the settlement process. Blockchain’s central ledger essentially eliminates reconcilement issues in capital market transactions because it creates a single source of truth. Furthermore, the use of blockchain technology allows for an overall reduction in violations concerning trading limits. In capital markets, trading limits are typically set for both notional amounts and settlement dates and if these are not complied with, severe financial penalties could be imposed upon the financial financial institution. An example of a blockchain company utilizing the technology in the capital markets space is Elphi.io, which, according to founder Eilon Shalev, uses the R3 Corda protocol that creates a secure, decentralized database where information is transparent and agreed upon by all parties involved in the transaction. Shalev notes that “by introducing a secured, trusted and transparent mechanism for reconciling debt transactions, we are able to save creditors and debtors billions of dollars.” Reporting and Compliance Another use of blockchain is in the market-to-market valuation reporting process, particularly with respect to more swiftly generating trade data, including real-time reports. The inherent features of blockchain can also be used to improve multi-jurisdictional regulatory reporting and provide for a more streamlined and efficient approach with the multitude of reporting requirements faced by firms. As an immutable ledger with time and date stamps of all transactions between parties, the ledger serves as a recording mechanism for all transactions and is suitable for compliance audits. Utilizing blockchain as a main depository of data and information for financial institutions would also be advantageous to risk departments who could be given transparency into the process via permissioned access (real-time or not) to the ledger.
The more investors know about the details of the mortgage and borrowers, the better for the investor to assess risk and assign a suggested price or bid on the mortgage pool.
Smart Contracts and Credit Risk Management Blockchain could also be implemented in the capital markets space by using the technology to create smart contracts that could be used in various scenarios. Smart contracts essentially codify into the technology an “if/then” scenario or workflow that triggers upon a specific condition. Thus, if there were trading agreements among parties, upon execution of a trade, the technology could be implemented to provide for a streamlined trade settlement process. Smart contracts could also be utilized in escrow scenarios where conditions must be met prior to release of funds. Finally, blockchain protocols can be utilized to improve credit risk management for financial institutions. The size of the credit line granted to the client of a firm usually depends upon several different factors, including the volatility of the traded asset and the notional size of the transactions. If market conditions change, additional collateral could be required to secure the traded or transferred asset and manage the altered credit risk that resulted from this market change. Smart contracts could be used to write debit funds to satisfy the changed market conditions and the shared blockchain ledger could provide an accessible, central database for the financial institutions. While there are leaders in the technology of blockchain such as Ethereum, Hyperledger, Corda and Digital Asset, there are not any financial institutions that have emerged as the blockchain leader as it pertains to use in capital markets. Nevertheless, the technology is being implemented in a wide variety of uses across the financial services sector. These range from trading and payment platforms to building databases for properties, loans and borrowers. The use of blockchain technology is exploding across a variety of other sectors and it is only a matter of time before it infiltrates as a common underlying technology protocol within capital markets. Due to the fact that blockchain has already been successfully implemented a variety of other industries providing for benefits to the the overall efficiency and transparency of these sectors, its implementation in the capital market industry will also prove significantly beneficial. The use and implementation of this emerging technology could provide the capital market with the tools to successfully compete against other growing industries already taking hold of the multifaceted new technology protocol. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 63
Heading into the new year, the mortgage industry faces a variety of challenges, but also great possibilities. With change as the only constant, companies will have to be more adept than ever to take advantage of favorable circumstances while mitigating their risk. HousingWire profiles three companies approaching 2019 with well-founded confidence, ready to adapt what worked in the past to the very different needs of the future. These companies are way out front, leading the way into a year full of opportunity.
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Black Knight
Nationwide Title Clearing
United Wholesale Mortgage
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SPONSORED CONTENT
Black Knight L
ooking toward 2019, the mortgage industry research and reporting, RAP can be leveraged anticipates a continuous rise in interest for an unlimited number of use cases across the rates and a slowdown in refinances and new loan life cycle. Artificial intelligence (AI) is revolutionizing home loans, which will put more emphasis on customer retention and growth. Lenders and the mortgage industry by taking on manual, servicers will also be expected to increase efforts repetitive tasks to help increase efficiency, for both consolidation and integration of proven productivity and accuracy. “To help reduce solutions to drive down costs and increase turn times and costs, Black Knight’s machine learning technology, AIVA, is a state-of-theefficiencies. As a leading mortgage industry provider, Black art virtual assistant that can help significantly Knight launched multiple high-performance increase the speed that ‘stare and compare’ software, data and analytics solutions to help tasks can be completed, so our clients can focus lenders and servicers achieve these goals and more on growth strategies or other customerfacing initiatives,” said Joe Nackashi, president exceed consumer expectations. The Actionable Intelligence Platform (AIP) of Black Knight. “As AIVA increases knowledge and integrates was developed by Black Knight to consolidate the company’s wide breadth of industry data manual routines for automation, lenders will be with proprietary analytics into one unified able to shift their focus toward more challenging projects that require human insight and delivery framework. The AIP delivers strategic, proactive and creativity.” Black Knight has also delivered its Servicing actionable analytics to the right people across an organization to help executives, managers Digital solution to address consumer demands to make payments via and employees know the smartphone, and help right actions to take at ser v icers drive more the right time. AIP also g row t h and improve supports data analysts by “By leveraging the unique adcustomer retention. providing faster insights vantages only Black Knight can Using Ser vicing that can be leveraged for Digital’s Loan Dashboard, lead generation, retention offer through its integrated, endconsumers can quickly and other use cases. to-end technology, data and anaccess from their mobile To f urther support alytics across the loan life cycle, device detailed, timely retention and growth, clients can optimize results and and relevant information Black Knight created the Rapid Analytics Platform perform stronger in today’s high- about their loan, home and neighborhood, as (RAP), a game-changing ly competitive marketplace.” well as perform various virtual analytics lab that self-service functions, provides users a single such as making a loan workspace to source data, pay ment, v iew ing execute queries and train payment history, requesting to remove PMI and machine learning and neural networks. R A P a llows users to create end less more. This consumer-centric mobile solution is opportunities by accessing Black Knight’s available as both a native app and a web-based premier data assets and analytics – with the solution. “By leveraging the unique advantages only option to include users’ own data – to build and apply models, and utilize a performance-tuned, Black Knight can offer through its integrated, interactive data science environment designed end-to-end technology, data and analytics across the loan life cycle, clients can optimize for real-time, high-speed processing. results and perform stronger in today’s highly From product development, lead generation competitive marketplace,” Nackashi said. and retention to valuation, risk management,
Black Knight 601 Riverside Avenue, Jacksonville, FL 32204 904.854.5100 BlackKnightInc.com AskBlackKnight@BKFS.com
Fast Facts Mission: to deliver innovative, seamless, integrated products across the homeownership life cycle as the mortgage industry’s leading provider of software, data and analytics solutions. Advanced, proven systems and solutions for origination, servicing and default. Leading source of mortgage and property data, including approximately 180 million first mortgage records; over 20 million home equity loan records; an industry-leading property database representing 99.9% of U.S. population; and historical data on over 580 million real estate transactions.
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SPONSORED CONTENT
Nationwide Title Clearing Nationwide Title Clearing 2100 Alt 19 North, Palm Harbor, FL 34683 800.346.9152 nwtc.com
Fast Facts Founded in 1991 in Burbank, CA Mission: To develop Life of Loan solutions and protect homeowners by offering services at the highest level of accuracy partnered with the mortgage banking industry. The largest lien release service provider in the nation Average 26% growth year over year for the past 10 years 99.8% compliance rate on county requirements 99.6% compliant across all Service Level Agreements
I
n the midst of the many challenges facing the everything they need proactively to prove due mortgage industry in 2018, Nationwide Title diligence was thorough,” Hillman said. “We face the same challenges every financial Clearing developed new products and services to save clients time and money while making services firm faces today. The difference is that we have the best trained, most experienced exthem more efficient and profitable. Much of this stems from the technology NTC ecutive leaders in the industry.” has begun to share with the industry on a SaaS basis, making it easier for clients to navigate OPPORTUNITIES IN 2019 through their personalized portals and access Looking to 2019, NTC will enter the New Year as the largest industry partner for document files. In addition, NTC opened a 32,000-square-foot research and remediation services across the secure file storage and audit facility, which is the entire lifecycle of a loan, as well as continue its immersion into the technology sector of the incore piece of its Curative Vault solution. The Curative Vault solution includes file in- dustry by implementing new and needed plat take and review, exception curative services, forms and solutions for clients. The company will also enhance service ofcomprehensive document and exception tracking, loan transfer assistance and pre-purchase ferings for its capital markets, lenders and title industry clients. collateral due diligence. NTC has successfully established a Life of “With the residential real estate business normalizing, we’re still seeing a great deal of Loan service platform built upon expertise, knowledge, and distressed real estate experience that change hands. reduces redundant “Trading in tasks, controls data non-performing and entry points, and – re-performing loans “Our opportunity is to continue to add most importantly has also been brisk value to that platform for the benefit of – is paperless after this year, which made our partners,” Hillman said. “Our greatthe first touch of the announcement of est challenge will be to constantly think the collateral file. our Curative Vault “Our opportuSolut ion welcome ahead, solving the next problem before nity is to continue news,” sa id John our partners even realize they are faced to add value to Hillman, CEO of NTC. with the potential risk. It means that we that platform for “We have revoluwill be constantly training, always press- the benefit of our tionized document partners,” Hillman custody to the benefit ing for innovation and forever analyzing said. of both the industry both the market and our response to its “O u r g reatest and consumers. It’s changes. There is no sitting still in our challenge will be an offering we are all business.” to constantly think very proud of.” ahead, solving the NTC’s operates as next problem bea preferred partner fore our partners with its clients, setting a high bar for its standards and proposing even realize they are faced with the potential solutions rather than just services, which is one risk. It means that we will be constantly training, reason the company has averaged 26% growth always pressing for innovation and forever anyear over year for the past 10 years. “NTC is far easier and less expensive to man- alyzing both the market and our response to age as a vendor than most service companies its changes. There is no sitting still in our business.” due to our experience in providing our clients
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SPONSORED CONTENT
UWM 2
One-Click AUS allows mortgage brokers to run 018 proved to be a rough year for lenders due to the high cost to originate and rising Fannie Mae’s Desktop Underwriter and Freddie Mac’s Loan Prospector at the same time, instan interest rate climate. However, mortgage brokers bucked that trend, taneously comparing the best parts of each in with the growth of that channel made especial- order to choose which product best suits the ly evident by United Wholesale Mortgage, the borrower. Not only does this allow brokers to get more nation’s No. 1 wholesale lender, as it reported a 52% year-over-year increase in loan volume this appraisal waivers, but it also delivers a quicker year, from Q3 2017 to Q3 2018, and ranked as a and easier process for both the broker and the borrower. top-five overall mortgage lender. “We’re known for having great products, “More than 75% of our business is purchase, and that’s because our brokers are continuing to pricing, service and technology, but the truth grow and do a lot of purchase business, even as is that UWM is a great partner because we’re on the rest of the market has been struggling,” said the same team as our mortgage broker clients,” Ishbia said. “We’re 100% aligned and tied at the Mat Ishbia, president and CEO of UWM. As the No. 1 wholesale lender in America, hip. We’re not just a lender or an investor, we’re UWM is dedicated to serving the independent a partner.” UWM anticipates the biggest challenge for mortgage broker channel and helping each in2019 will be continuing to help its network of dividual broker expand their business. “There are close to 3,000 people working at 10,000 mortgage broker companies and 30,000 loan officers across UWM and every perthe country continson at our company ue to grow through is 100% focused on m a rk e t i ng i n it i a helping independent “We’re known for having great tives, technology and mor tg age broke r s compliance. grow their business products, pricing, service and tech“We’ve got a lot of and be successful,” nology, but the truth is that UWM is things coming from a Ishbia said. a great partner because we’re on the product and technoloThe company rolled same team as our mortgage broker gy perspective. out two impressive “We are going to products toward the clients,” Ishbia said. “We’re 100% focus completely on end of 2018 that will aligned and tied at the hip. We’re not helping our clients enhance the way brojust a lender or an investor, we’re a grow their business, kers do business movpartner.” and loan officers will ing forward, UClose continue to leave mega 2.0 and One-Click banks and retail lendAUS. Both solutions ers to join mortgage will help brokers expand clientele and close loans faster than ever brokers so they can make themselves more attractive to consumers,” Ishbia said. before. UWM predicts the mortgage broker channel UClose 2.0 gives brokers total control of the closing process, allowing them to close loans will continue to grow over the course of 2019 and faster and more efficiently as they no longer re- with the company’s extensive wholesale knowledge and broker solutions, UWM is prepared for quire interaction with a UWM-based closer. Brokers can handle the process in its entirety, that growth. “The mortgage broker channel will grow and but still have the ability to work with a closer if they choose. UClose 2.0 has changed same-day UWM will grow right along with it. We’ll continclosings into same-hour closings, transforming ue to partner with brokers and help them thrive in 2019 and beyond,” Ishbia said. what used to take brokers hours into minutes.
UWM 585 S Blvd E, Pontiac, MI 48341 800.981.8898 uwm.com
Fast Facts Founded in 1986 in Birmingham, MI Mission: to grow the mortgage broker channel by providing independent mortgage brokers throughout the country with an unrivaled level of transparency, innovative technology, top-notch client service, and partnership tools. No. 1 wholesale mortgage lender in America for the past 4 years
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s s e n i s u b The
E S CA G N I D N E L e l b a d r for a ffo
h t i w h t w o r g g n i l l s e r p e m w o o c r e r e o s b s I r M e L d L en cts aimed at produ Sarah Wheeler
By
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NASHVILLE, home of country music and hot chicken, has been growing at a breakneck pace, adding about 100 people a day to its population over the last several years. The capital cit y’s combination of jobs, culture and newly minted sports teams have made it one of the country’s trendiest cities — with soaring home prices to match. The median price of a single-family home in Nashville hit $314,900 in June 2018, and housing costs are now 46% greater than the pre-recession peak in 2007. To live comfortably in the city, GoBankingRates.com estimates that residents need a salary of $80,548, but the average household income
sits at just $49,891. Nashville is hardly unique in this regard: 12 million renter and homeowner households throughout the U.S. now pay more than 50% of their annual income toward housing, according to HUD. These households represent a challenge for lenders, but also an opportunity. In the past, lending in lowto moderate-income (LMI) neighborhoods was more about satisfying fair lending and C R A requ i rement s than growing business, but in today’s housing market, where many current homeowners are locked in low-rate mortgages for years to come, focusing on LMI lending can also be good for the bottom line.
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“ First Commonwealth recognize the needs and challenges that one community faces may be entirely different than another community.” Evan Zuverink, vice president, CRA officer at First Commonwealth Bank. This is new territory for many lenders, but last year The Mortgage Collaborative (TMC) launched the Affordable Lending Outreach Pilot Program with Fannie Mae to help lenders and LMI borrowers find each other. Under the pilot program, Fannie Mae and TMC match the dollars lenders spend promoting affordable housing. After a successful launch in 2017, the pilot program doubled the number of participating lenders to 10, and more than doubled the one-for-one matching fund to $50,000. “The idea for the program was the result of a conversation on affordability with the team at Fannie Mae,” said Jim Park, founder and CEO of TMC. “As we discussed the issue along with the impact it was having on our lender members here at TMC, we came up with a solution that became the Affordable Lending Outreach Program we have today.” The program kicked off in Nashville with five TMC member lenders who already had programs around LMI and manufactured housing. One lender taking advantage of the program is First Community Mortgage (FCM), headquartered about 20 minutes southeast of Nashville in Murfreesboro. FCM is trying to overcome the disparity between incomes and home prices in the region with an innovative set of products and programs aimed at LMI borrowers, which in their area includes many Hispanic consumers. “Fair lending is a hot topic, but how do we as lenders help responsibly promote affordable housing? It’s a tough question because we don’t control the market,” said Jeremy Warren, vice president of diversity and operations for multicultural lending at First Community Mortgage. “Serving the needs of low- to moderate-income borrowers is an important part of being a responsible lender, but there’s no easy fix.” “What Fannie Mae and The Mortgage Collaborative are doing through the pilot program is really spurring lenders to get creative,” Warren said. In the last two years, FCM, which has 16 retail branches, has spearheaded a strategy for affordable housing that has given them a high profile among the region’s growing Hispanic population — with compelling results.
LMI OUTREACH IN MUSIC CITY Under the pilot program, each lender gets to decide how they use their promotional resources, and First Community Mortgage focused on first-time homebuyer education through an organization that was already 70 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
working with people earning low to moderate wages — Goodwill Industries. FCM started by offering first-time homeownership classes to Goodwill employees who had been with the company for at least two years. Although some class attendees were years away from buying a house, FCM helped them focus on establishing and improving credit. After seeing significant engagement, FCM used pilot program promotional funds to become a gold sponsor of Goodwill’s 12 Days of Giving event, which gave them exposure through commercials, billboards and local radio and television news programs. The initiative helped to establish FCM as the lender of choice for a set of borrowers who didn’t previously have strong ties to traditional banking institutions. Participating in the program was a logical next step for FCM, which had already committed to serving LMI borrowers. In 2016 the company hired Miguel Vega, a business development consultant, with an eye on underserved markets. Vega started by leading the company’s multicultural lending initiative and today is the company’s chief diversity officer. Vega is also the president of the local chapter of the National Association of Hispanic Real Estate Professionals, an organization that was pivotal to FCM’s outreach to Hispanic borrowers. Vega’s team brought on bilingual loan originators, developed new products and programs specifically for the LMI borrower and reworked existing processes, which included loosening internal overlays on manufactured housing as well as lowering the FICO score requirement for FHA loans. FCM also created a portfolio product that allows undocumented immigrants to purchase a home with nontraditional, alternative credit. FCM manually underwrites each portfolio loan, which in lieu of a typical credit score, requires three credit accounts, which could include cell phone, internet, utility and cable accounts. In 2017, 75 families in the middle Tennessee area were able to buy homes through FCM’s portfolio product, and the company is on pace to double that number in 2018. The average loan amount for those 75 portfolio loans was under $150,000 and FCM required a minimum of 15% down. The portfolio loans have performed incredibly well, Warren said, with no late payments, early payoffs or early payment defaults. About 30% are paid at least one to two months ahead. “These are very responsible borrowers. They tend not
to use credit, but when they do, they want to pay their bills,” Warren said. The relationship FCM has built with underserved borrowers has also led to a very loyal referral base. “After we closed one of our first LMI loans, that borrower referred at least four or five people to us within a week,” Warren said. The pivot to serving LMI borrowers, particularly those who might not speak English as a first language, required FCM to reevaluate every step in the loan process. “There is not a big pool of experienced bilingual loan processors or underwriters in this area, so we had to educate everybody in the company who touches the loan file that things might look a little different,” Warren said. His advice to other lenders looking to expand their affordable housing lending is to brush up on the rules surrounding self-employed borrowers, understand how to read tax returns and know how to evaluate large deposits in bank accounts. Not all of FCM’s lending programs to LMI borrowers require such a high touch. The company also does a lot of Fannie Mae HomeReady loans for those with established credit and W-2 income, which can be approved through an AUS. FCM’s commitment to affordable lending has proved incredibly valuable. “If you combine our efforts with NAHREP, our relationship with Goodwill, and our bilingual marketing through TV, social and radio — we are the most well-known lender in the Hispanic community in metro Nashville,” Warren said. “We’ve made a huge impact in middle Tennessee and we are now taking what we’ve done locally and expanding it to all our retail locations.” As The Mortgage Collaborative and Fannie Mae expanded the pilot program, lenders in other geographic areas have also been able to participate. First Commonwealth Bank has a footprint that spans central Pennsylvania and western Ohio. FCB decided to partner with the Affordable Lending pilot program as an extension of its growing community lending efforts and saw the perfect opportunity when it acquired a bank in central Ohio in 2017. “First Commonwealth recognizes the needs and challenges that one community faces may be entirely different than another community,” said Evan Zuverink, vice president, CRA officer at First Commonwealth Bank. “Our efforts to execute on living our mission of build-
ing the financial confidence of our neighbors and businesses has motivated us to invest in tax credits, construction lending, permanent financing, and a wide array of residential mortgage lending to help all of the communities we live and work in provide safe, affordable housing solutions for everyone.” Through the pilot program, FCB partnered with a large housing development nonprofit in Columbus, Ohio, to support their financial fitness and homebuyer education programs, which resulted in a number of families achieving the dream of homeownership. “In 2017, central Ohio was a new marketplace for the bank. Thanks to the support of public, private, and nonprofit partnerships, we feel that we’ve made a significant impact in the affordable lending marketplace and made lasting relationships with our customers resulting in an array of housing development activities,” Zuverink said.
NATIONWIDE OPPORTUNITY For most lenders, 2018 has been a tough year for their mortgage origination business. Rising interest rates have anchored homeowners in their current houses, squeezing the supply of housing even further, while home price increases have made even previously affordable metros out of reach for many borrowers. Creative new approaches like the Affordable Lending Pilot Program are needed if mortgage lenders are going to expand their business, and underserved borrowers present a significant opportunity for lenders willing to think outside their typical credit box. Combined with recent actions by the GSEs to encourage loans for manufactured homes and rural development, the LMI lending landscape has shifted considerably in the last several years. “It’s truly rewarding to see the impact this program is having,” Park said. “With the flexibility it provides our participating members, they’re able to use the program resources in the ways best suited to help their local communities. We’re thrilled to have a part in making the dream of home ownership a reality and thankful to have Fannie Mae as our partner in bringing this program to fruition.” At FCM, Warren can see benefits at every level. “We’re helping people get into homes that didn’t even know they could get into a home. We’re also making a smart business decision by aligning ourselves with the fastest-growing home-purchase market in the country. It’s a win-win for everyone.”
HISPANIC POPULATION GROWTH
States that border Mexico have the largest Hispanic populations, with New Mexico (48.8%), Texas (39.4%) and California (39.1%) accounting for the top three. But this demographic is also increasing in states far from the southern border, with 12 states you might not expect showing Hispanic populations in the double digits in 2017:
Wyoming Maryland Hawaii Oklahoma Nebraska Massachusetts
Kansas Idaho Washington Oregon Utah Rhode Island
10% 10.1% 10.5% 10.6% 11% 11.9% 11.9% 12.5% 12.7% 13.1% 14% 15.5%
Source: usnews.com
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 71
L A ND ofNITY U T R O OPP
Recent actions by the GSEs are designed to make LMI lending easier, especially when it comes to manufactured housing. Freddie Mac is now buying mortgages secured by manufactured homes and Fannie Mae changed the down payment requirements for its HomeReady program from 5% to 3% for manufactured homes. County-level breakout of purchase loans for manufactured housing. Source: iEmergent
WEST COAST Although their average price rivals that of traditional homes in more inland areas, manufactured homes offer an affordable alternative in coastal regions and lenders in these areas are capitalizing on the opportunity. Here are the five metro areas with the highest average loan amounts for manufactured homes in 2017:
PortlandVancouver-Hillsboro, OR Riverside-San Bernardino-Ontario, CA
$207,484
$150,1902
72 HOUSINGWIRE â?ą DECEMBER 2018/JANUARY 2019
San DiegoCarlsbad, CA
$168,455
Seattle-TacomaBellevue, WA
$210,112
Los Angeles-Long Beach-Anaheim, CA
$174,994
County-level breakout of purchase loans for LMI. Source: iEmergent
Top 25 markets of purchase loans to LMI borrowers
Rank (loans)
Metro Area
Loans (#)
Avg. Loan Size
1
Chicago-Naperville-Elgin, IL-IN-WI
35,041
$142,952
2
Washington-Arlington-Alexandria, DC-VA-MD-WV
29,867
$256,816
3
Atlanta-Sandy Springs-Roswell, GA
27,163
$146,591
4
Minneapolis-St. Paul-Bloomington, MN-WI
25,864
$169,603
5
New York-Newark-Jersey City, NY-NJ-PA
24,180
$208,643
6
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
22,922
$165,423
7
Phoenix-Mesa-Scottsdale, AZ
22,237
$162,364
8
Dallas-Fort Worth-Arlington, TX
19,079
$155,615
9
Detroit-Warren-Dearborn, MI
17,895
$126,009
10
Denver-Aurora-Lakewood, CO
15,137
$226,836
11
Houston-The Woodlands-Sugar Land, TX
15,080
$148,582
12
St. Louis, MO-IL
14,632
$120,018
13
Boston-Cambridge-Newton, MA-NH
14,622
$248,282
14
Seattle-Tacoma-Bellevue, WA
12,771
$241,447
15
Baltimore-Columbia-Towson, MD
12,701
$194,892
16
Charlotte-Concord-Gastonia, NC-SC
12,458
$137,211
17
Cincinnati, OH-KY-IN
11,632
$117,524
18
Tampa-St. Petersburg-Clearwater, FL
11,349
$123,041
19
Indianapolis-Carmel-Anderson, IN
1,340
$119,451
20
Kansas City, MO-KS
11,241
$131,412
21
Columbus, OH
10,136
$127,119
22
Nashville-Davidson-Murfreesboro-Franklin, TN
9,198
$166,883
23
Miami-Fort Lauderdale-West Palm Beach, FL
8,976
$152,179
24
Las Vegas-Henderson-Paradise, NV
8,720
$171,108
25
Pittsburgh, PA
8,456
$107,461
HOUSINGWIRE â?ą DECEMBER 2018/JANUARY 2019 73
HOW TO IMPROVE LENDING TEAM PRODUCTIVITY
Taking assembly lines back to the basics By Pamela Herrmann
74 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
While many lenders think they’re doing just fine with productivity, and processing loans with ‘good enough’ speed and efficiency, the numbers tell quite a different story completely. Through the lens of data, most shops are falling flat. We’re going to share the insights we’ve gained from our six-year benchmarking study, including what the high-performing lenders are doing differently and how we can learn from them to solve common issues throughout the lending process.
What is productivity and why does it matter? Arguably the most important profitability metric you should be tracking, productivity, measures the effectiveness of a lending team. Specifically, productivity measures the number of loans a team closed in any given month, or stated another way, closed loans per employee per month. More than 50% of your cost to close is labor, so monitoring this metric helps management focus their attention on those activities that are affecting production and dragging down profitability. Steady improvement in productivity directly impacts the bottom-line.
There are four different ways to improve your productivity. Here they are:
1.
Sit on the line
While most lending teams bristle at the notion that lending is akin to production line work, the truth is just like on a production line, certain actions must happen sequentially in order for all the parts to fit together properly. However, that’s where the comparison ends. The major difference today between Henry Ford’s Model T production line and a loan production line comes down to one thing: visibility. On the auto production line, where the entire work floor was visible to the foreman, he could spot a line worker getting low on parts, and he would fix the gap by simply shouting to the restocking crew to replenish the worker’s supply. A worker who fell behind and was creating a bottleneck would be coached by a foreman to resolve the issue. As a result, the communication on the assembly line was very open, visually and verbally, a key to having production glide along with high efficiency. Compare that to today’s knowledge work, like lending, and you can see how gaps and bottlenecks that stand in the way of efficiency are mostly hidden behind a multitude of work tools and are therefore harder to spot from any vantage. It begs the question, when was the last time you sat on the line and watched a loan go from application to close? If it wasn’t in the last six months, then you’re overdue for this exercise as you will experience the reality of what your team goes through to close a loan. As industry changes dictate changes in the lending processes, your team members must undergo continual transformation in order for your shop to adapt. After years of focusing on heavy compliance regulations, we’re coming out on the other side looking at a stable, long-term purchase market. With an industry that is now very different than what it has been in the past, we’re entering uncharted waters that merit new mapping and navigation with fresh eyes. Your job is simple at this stage as you sit on the line: Ask questions like a relentless 3-year-old. Don’t worry about fixing anything (that comes next), just observe, ask questions and let the discovery begin. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 75
2.
Map the loan journey
To avoid falling for the latest shiny object when evaluating technologies, it’s important to pinpoint the challenges that you see needs fixing. If you assume rather than know, you’re going to be an easy target for slick marketing and a sales pitch for the latest, greatest widget that may (or may not) increase your overall efficiency. If you’re looking to control your cost to close, then map the journey before you make any further investments in technology. Mapping will help you focus on your process and take control of the future decisions you make. With a two-hour investment of time, a stack of colored sticky notes, a huge wall and your lending team, all will be revealed. You’ll all have a greater understanding of what you’re doing well or where there are duplications between people and technology exist. At every touch point of the loan, understand who is doing what and how the technology is laying on top. The map will tell you the true story and will help you design new processes that match the mortgage market of today, not yesterday. When you complete this exercise, you’ll have a very clear understanding of your next steps. Where you see gaps or bottlenecks, design the best solution. Perhaps it’s retraining, cross training, new technology or optimization of existing technologies. Don’t guess here, this is critical thinking based on data. One of the ways we support our clients at this stage is through an optimization report. It’s like a 100,000 mile tune up for your car that runs a full diagnostic of your systems. We run through a 100-point diagnostic to evaluate work flows and system processes to remove duplications of labor and technology, identify opportunities for retraining and make recommendations on your process. Any time we can bring best practices from our high-performance lenders to others we quickly catapult productivity.
3.
Develop adaptable, customer-centric people People are your most valuable asset, hands down. Without them your technology and processes wouldn’t function, and your customers would forever be searching for answers to a few simple questions. The most magical part of the experience for a borrower is when someone reaches out to them from across the lending abyss and extends a helping hand. Your people guide your borrowers through the process to reduce (dare I say eliminate?) pain and frustration. Our six-year benchmarking study tells us exactly what high performance lenders do to get exceptional results from their team. The one thing every high-performance lender is doing is cross training their team to do every part of the loan, and every one of them is delivering an exceptional borrower experience. We know that because their market share, year over year, is higher than their peers and they consistently yield high productivity results. Volume is affected by a myriad of macroeconomic forces
76 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
but the bottom line is, the better your team is at moving together to where the work is, the better the efficiency. Your team must be trained in all aspects of the loan production so that they can go to where the work is as volume fluctuates. No more hiring when volume flows, and then letting people go when it ebbs; long-tenured teams are irreplaceable. No more stacked up work at one person’s desk. Everyone moves in cadence to swiftly and efficiently process every loan. The truth is, every team member has an important role to play, but the power lies in your team’s collective ability to be great with technology, the process of lending and being exceptional with borrowers. There is so much value in possessing the special spark required to nurture the borrower or the complex knowledge around how to manufacture a mortgage, and so little fat for team members who don’t have these skills, that decisions around staffing become clear. Hanging on to people who have a fixed mindset, cling to old processes or are not open to change is just lazy leadership. Effective lending today requires that everyone is great with people and great with technology. It’s that simple.
Lean in to create a great place to work One of your most important jobs as a leader is to encourage results without making your team feel like spokes in a wheel or gears in a profit-making machine. Move, move, move, faster, faster, faster. Where’s the heart? What’s the point of the work you do if you’re not having fun and developing positive relationships with the people you spend time with every day? The highest-performing lender in our benchmarking study consists of a team that has been together for a really long time and experiences little to no attrition. No one wants to leave this team because they love coming to work. Why? Company culture and work environment have tremendous value to employees. Think of it this way, most people would rather be happy and earn a little less than be paid more and detest how they spend most of their day. This is especially true with the younger work force. If you want to attract up-and-coming top talent, our best advice is to invest in creating a value-driven culture of like-minded people. True leaders are great at helping every employee, no matter their role, understand how the work they do positively impacts the broader mission.
Reinforce accountability and ownership There are a variety of ways to reinforce process ownership and accountability within your team. Share the metrics with them to encourage ownership and talk them through why these metrics matter, how they’re calculated and then develop milestones to measure progress. Have team agreements as to how you work together for greater collaboration. We’ve found that when the entire team is focused on the same objective, they all contribute to significant upticks in profitability.
Lenders prepare for harsh lending conditions
After seeing several years of booming business, lenders began to struggle in the first quarter of 2018. In the first quarter of 2018, independent mortgage banks and mortgage subsidiaries of chartered banks reported a net loss of $118 per loan originated, according to the Quarterly Mortgage Bankers Performance report from the Mortgage Bankers Association. This is down from a gain of $237 per loan in the fourth quarter of 2017. Profits later rose once again, and lenders began making a profit during the remaining quarters of the year. However, the drop was troubling as it was
the first time lenders reported a loss since the first quarter of 2014 when lenders lost $194 per loan as they dealt with rising compliance costs from the newly passed Dodd-Frank reform. In fact, this was only the second time lenders reported a loss since the MBA began conducting the report. But 2018 was only the beginning. Through the year, mortgage interest rates continued to rise, and home prices increased. In this difficult environment, 2019 could prove to be even more of a challenge. As economists begin to adjust their forecasts for the year ahead, many predict the Federal
Reserve will continue to raise interest rates, forecasting at least three rate hikes for 2019. One expert, HomeStreet Bank Senior Vice President Andy McDonough, who has more than 20 years of experience in the mortgage industry, said that if current conditions continue, 2019 will shift to a buyer’s market. As home prices continue to rise alongside interest rates, affordability continues to decrease. As affordability falls, the housing market could see a significant decrease in interested homebuyers. And mortgage lenders are already starting to feel it. For example, while Ellie Mae post-
By Kelsey Ramírez
ed positive third-quarter earnings results, it was significantly lower than Wall Street’s expectations, and could even signal a slow-down ahead. The company revised its forecast down for its full-year revenue predictions, but company CEO Jonathan Corr said he was proud of the company for showing growth in the challenging mortgage origination environment. Other lenders are already beginning to lay off staff in their mortgage departments as they find themselves unable to cope with rising costs of origination and lower profit margins. For example, in October, JPMorgan Chase laid off nearly 400 employees in its consumer mortgage banking division. Wells Fargo laid off about 650 mortgage-related employees in August, citing the low volumes. Unfortunately, the situation could get worse before it gets better. Economist predict that the next recession will begin in 2020, or even as soon as 2019. Nearly half of experts recently surveyed by Zillow said they expect the next recession to begin sometime in 2020, according to the company’s Home Price Expectations Survey, a quarterly survey of more than 100 real estate experts and economists. Back in August last year, experts predicted there was a 73% chance of a recession by the end of 2020. Even former Federal Reserve Chair Ben Bernanke predicted the economy will be “going off a cliff” in 2020.
HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 77
C O M PA N Y S P O T L I G H T: H O M E S T R E E T B A N K
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For nearly 100 years, this community bank has made homeownership personal HomeStreet Bank specializes in mortgage lending for West Coast and Hawaii
A
family serving families” probably isn’t an intuitive description for a financial institution, but it was Continental Mortgage and Loan Company’s dedication to family, community and ethical practices that allowed it to thrive as one of the Pacific Northwest’s largest independent sources of mortgage funds. Continental, founded by W. Walter Williams in 1921, survived the Great Depression, recessions, world wars, and a complete economic and technological reinvention of what U.S. finance and mortgage lending looks like. It is the oldest customer for Fannie Mae, which began accepting Continental mortgages in 1938. The sales to Fannie Mae allowed Continental to pay its first dividends in a decade and revive the local economy during the Great Depression. Today known as HomeStreet Bank, this Seattle-based bank is thriving on the same principles on which it was founded: honest, practical and diverse mortgage lending services. The bank’s services have expanded well beyond home loans, but it’s still a mortgage banker at heart, with the largest division of the bank dedicated to lending on single-family homes to customers along the West Coast and within the Hawaiian Islands. “HomeStreet Bank wouldn’t be where it is today without great people,” says Mark Mason, HomeStreet Bank’s CEO. “Our history is testament to the tenacity and authenticity of our business model, and we’re continuously looking ahead at how we can better serve our loan officers and customers using these same values of honesty, integrity and banking innovation.”
78 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
With more than 110 branches across the western U.S. and Hawaii, HomeStreet has experienced rapid growth. Recently, assets have grown to $7 billion, and HomeStreet now employs more than 1,200 talented mortgage employees looking to further their careers and assist homebuyers through various mortgages with a personal touch every step of the way. HomeStreet claimed the No. 1 market share for purchase-loan volume in the Pacific Northwest (Washington, Idaho, and Oregon) and Napa, California, for 2017, according to publicly recorded data. This is one of many recent accomplishments, including being rated in Scotsman Guide as the 13th largest retail mortgage lender nationally in 2017, and recently being named by Fortune as one of the fastest-growth companies. However, HomeStreet recognizes you can’t prosper alone. Remaining true to its community ties and philanthropic nature, HomeStreet donated more than $1 million to local nonprofits in 2017 alone, and employees collectively donated more than 20,000 hours of volunteer time. While HomeStreet offers a breadth of traditional banking services, it prides itself
“
on an extraordinary array of loan types. HomeStreet specializes in opening up homeownership to more people, but doing so responsibly and ethically. Its customer base includes self-employed buyers, buyers with small down payments, veterans and first-time homebuyers. HomeStreet strives to make everyone’s homeownership dream a reality through home purchase, refinance, renovation and HELOC options. HomeStreet’s executive leadership team is as strong and diverse as its history and product offerings, with centuries of combined banking leadership experience. CEO Mark Mason joined HomeStreet in 2009. HomeStreet was the first bank adversely affected by the 2008 collapse to recapitalize through IPO rather than being sold — an accomplishment due almost exclusively to Mason’s expertise and resilience. Since its IPO in 2012, total assets have grown from $2.4 billion to $7 billion, a compounded annual growth rate of 19.5%, and HomeStreet’s stock price has appreciated 168%. “HomeStreet has seen it all and survived one of the most economically challenging
HomeStreet Bank wouldn’t be where it is today without great people. Our history is testament to the tenacity and authenticity of our business model, and we’re continuously looking ahead at how we can better serve our loan officers and customers using these same values of honesty, integrity and banking innovation.” — Mark Mason, CEO
C O M PA N Y S P O T L I G H T: H O M E S T R E E T B A N K
times in our nation’s history,” says Mason. “This isn’t luck — it’s responsible, ethical lending practices and solid leadership that’s moved us forward during trying times. This same resilience and sound thinking is what we bring to every transaction with our customers.” Rose Marie David, senior executive vice president of HomeStreet’s mortgage lending division, also is no stranger to adversity. In her early years as a professional ballet dancer, David learned what it meant to be committed and tenacious amid competition and high standards. Today, David oversees all aspects of HomeStreet’s mortgage lending division, ensuring not only that the large salesforce is meeting its goals, but also, that each qualified customer is met with the highest standards of service and presented with relevant loan offerings. Since taking her leadership role in 2012, HomeStreet’s
mortgage lending division has overcome increasingly challenging housing market trends and grown over 400% in mortgage banking volume. “With nearly a century in mortgage lending, HomeStreet Bank does home loans exceptionally well,” says David. “This expertise is married with a culture that has an incredible spirit to serve. Our company’s dedication to do the right thing, financially transform our customers’ lives and contribute to the communities we serve is refreshing in a time when that’s not how all financial institutions behave.” Looking ahead, HomeStreet plans to not only grow its services for employees, customers and community, but also tap into critical technology that adds a layer of convenience to already exceptional service. Through mobile device capabilities that alleviate the burdens of travel time and location, HomeStreet aims to provide its
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Mark Mason CEO, HomeStreet famous personal touches while staying on top of technology. “A successful business can only grow if it evolves with shifting customer needs, and we’ve identified those here at HomeStreet,” says Mason. “That means advanced mobile banking technology. One of our continued initiatives in 2019 is to advance our digital service offerings. We have a rich history—but our eyes are always forward.” Learn more about HomeStreet Bank’s services at homestreet.com. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 79
Multifamily Bulletin
Multifamily lending hits allnew high in 2017 HERE WERE THE TOP FIVE MULTIFAMILY LENDERS BY KELSEY RAMÍREZ, JEREMIAH JENSEN, AND BEN LANE
MULTIFAMILY LENDERS had a great year in 2017 hitting a new record high, according to a new study from the Mortgage Bankers Association. Strong market conditions fueled a 6% increase in multifamily lending last year to $285 billion in new mortgages for apartment buildings with five or more units, according to the annual report. While the number of loans originated remains relatively steady, the loan amounts are rising as the total loan volume continues to rise. “The multifamily lending market in 2017 benefited from improving fundamentals, rising property values and low interest rates,” said Jamie Woodwell, MBA vice president of commercial real estate research. “The result was larger loan sizes and record levels of overall borrowing and lending.” “The market remains well served, with 2,554 lenders last year making loans backed by multifamily rental properties,” Woodwell said. “Demand came from borrowers and lenders of all sizes, with loan amounts ranging from thousands of dollars to hundreds of millions.” About 58% of active lenders made five or fewer multifamily loans in 2017, but not all.
HERE ARE THE TOP FIVE BY DOLLAR VOLUME: 5. Berkadia The company closed 807 loans for a total of $15.56 billion and had an average loan size of $19.3 million. 4. Walker & Dunlop The company closed 783 loans for a total of $17.58 billion and had an average loan size of $22.5 million. 3. JPMorgan Chase The company closed 5,576 loans for a total of $17.66 billion and had an average loan size of $3.2 million. 2. CBRE Capital Markets The company closed 1,135 loans for a total of $17.67 billion and had an average loan size of $15.6 million. 1. Wells Fargo The company closed 1,350 loans for a total of $20.81 billion and had an average loan size of $15.4 million. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 81
EXPEDIA DIVES HEADFIRST INTO SHORT-TERM RENTALS, ACQUIRES PILLOW AND APARTMENTJET Expedia Group, the online travel giant that includes Hotels.com, trivago, Orbitz, Travelocity, Hotwire and more, also has two of the biggest names in short-term rentals under its umbrella: HomeAway and VRBO. But those companies trail the short-term rental industry’s biggest player, Airbnb. Now, Expedia wants to do something about that by working with the multifamily industry to make it easier to use units as short-term rentals. Expedia announced recently it is acquiring Pillow, a San Francisco-based startup that helps apartment owners work with their long-term residents to turn occupied units into short-term rentals, and ApartmentJet, a software company that enables multifamily property owners to turn units into guest suites. According to Expedia, the acquisitions will “help unlock urban growth opportunities that, over time, will contribute to HomeAway’s ability to add an even broader selection of accommodations to its marketplace and marketplaces across Expedia Group brands.” Through Pillow, landlords and residents work together to use apartments as short-term rentals, giving both parties more information and control over the short-term rental arrangement without violating lease terms. ApartmentJet, on the other hand, allows property owners to set up and rent out guest suites at their properties. “Both solutions enable owners to set limitations on short-term rentals in their buildings, such as limiting the number of total rental nights per year for units or for an entire building,” Expedia said in a release. “Both make it easy for multifamily owners to know exactly who is staying in their buildings and when.” WITH EXISTING HOME SALES AT A THREE-YEAR LOW, ARE MORE PEOPLE TURNING TO RENTING? With home prices and interest rates both on the rise, will more people look to renting as their only “affordable” option for housing? It looks like that might already be happening. Data from the National Association of Realtors shows existing home sales fell to a three-year low in September, as home prices rose for the 79th straight month. More than six years of monthly price gains is putting a squeeze on housing affordability. Another headwind for single-family housing is that interest rates are basically at the highest level they’ve been at in 10 years. Combine steadily rising home prices with recent record-high interest rates and now people can’t afford as much house as they could just a few months ago. And that could push people to look for an alternative: renting. “For a while, inventory was the main scapegoat for sales volumes that failed to launch, under the theory that it’s hard to buy 82 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
meaningfully more homes when there are significantly fewer homes actually available for sale,” Zillow Senior Economist Aaron Terrazas noted the recent existing home sales report. “But that argument is harder and harder to sustain with every passing month, with nationwide inventory declines slowing dramatically and the number of homes for sale actually on the rise in many large markets,” Terrazas continued. Instead, Terrazas said that the “recent sluggishness” in home sales seems to be driven by decreasing demand driven by rising interest rates and rents that are finally moderating (or perhaps even slowing down). And that could keep people renting for the foreseeable future as renting appears to be more affordable than buying for many people now. “As rents surged in recent years, many renters sought refuge in the homeownership market, attracted by the stability of long-term payment schedules and rock-bottom interest rates that helped keep those payments themselves incredibly low,” Terrazas said. “With rents stabilizing, that sense of urgency may be diminished somewhat – and renting itself may be seen as a better bargain as rising mortgage interest rates, still-rising home prices and sluggish wage growth dent the affordability advantage of a typical mortgage,” Terrazas added. NAR Chief Economist Lawrence Yun said there could be a respite for first-time homebuyers if the job market continues to improve, leading to more people having more money to spend on a house instead of an apartment. “Rising interests rates coupled with increasing home prices are keeping first-time buyers out of the market, but consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory,” Yun said. But NAR President Elizabeth Mendenhall cautioned that there simply isn’t enough single-family housing right now that’s affordable for first-time buyers, another factor that could keep people renting. “Despite small month over month increases, the share of firsttime buyers in the market continues to underwhelm because there are simply not enough listings in their price range,” Mendenhall said. In fact, it appears that renters are increasingly more likely to view renting as an attractive financial option. A survey from Freddie Mac showed that a whopping 78% of renters believe renting is more affordable than owning, which is up by 11 points from just six months ago. That’s despite the majority of renters (66%) reporting difficulty in affording their rent at some point during the past two years. So even though the majority of renters have had “difficulty” paying their rent, they still view renting as a more affordable option that buying. That’s good news for the multifamily business
Multifamily Bulletin
and bad news for the home buying business. REALPAGE ACQUISITION SPREE CONTINUES, AGREES TO PURCHASE RENTLYTICS Real estate tech company RealPage has been on an acquisition tear of late, shelling out more than $1 billion to acquire several other companies in the real estate tech space. And now, RealPage is at it again. RealPage announced recently that it agreed to buy softwareas-a-service company Rentlytics for $57 million, its seventh acquisition since January 2017. “Rentlytics expands our data footprint in the multifamily industry, thereby improving our benchmarking and precision forecasting capabilities,” RealPage Chairman and CEO Steve Winn said in a statement. “We intend to combine the real-time data that Rentlytics has assembled with our existing business intelligence and data analytics platform, and offer the industry a more powerful, high precision tool to measure financial and operating performance,” he added. The acquisition of Rentlytics will increase the company’s business intelligence and analytics platform by roughly 900,000 multifamily units. “The current Rentlytics platform is a true value-add to owners and operators, and we expect to continue to support it. Over time, we believe a combined RealPage and Rentlytics solution will offer an even more compelling advantage to clients,” RealPage Senior Vice President of Asset Optimization Keith Dunkin said in a statement. “I am excited to welcome Rentlytics to our family, and look forward to utilizing Justin’s considerable expertise as we integrate our two platforms,” he added. The increase in available data will help RealPage sharpen its predictive analytics and optimization tools. Additionally, RealPage will now have the ability to leverage Rentlytics proprietary renovation management technology, a valuable tool in a market obsessed with value-add deals. Singapore real estate giant CapitaLand enters U.S. multifamily with $835 million acquisition With rents continuing to rise with little sign of slowing, multifamily real estate in the U.S. is beginning to draw some serious international investor interest. Earlier this year, Australian companies Lendlease and First State Super teamed up to launch an investment platform that plans to build a $2 billion multifamily portfolio in the U.S. And now, one of Asia’s largest real estate companies is planning a U.S. invasion of its own. Singapore’s CapitaLand announced recently that it is entering the U.S. multifamily market with an $835 million acquisition of
16 apartment communities in Seattle, Portland, Los Angeles, and Denver. And this purchase won’t be the company’s only foray into U.S. multifamily. CapitaLand said that it sees serious opportunity in the U.S. multifamily market and plans to grow its portfolio beyond this initial purchase. “The multifamily sector in the U.S. is broad, scalable and a growth sector marked with long-term secular trends. Widely regarded as one of the most resilient and liquid institutional real estate asset classes in the U.S., this multifamily portfolio offers attractive risk-adjusted returns for CapitaLand,” said Lee Chee Koon, president and group CEO of CapitaLand Group. “While we value add to this portfolio of freehold operating assets through asset enhancement post acquisition, we will also be looking out for more opportunities to build up a sizeable platform and strengthen our expertise in this asset class,” Koon continued. “As the portfolio grows, we will have the option to spin off these assets into investment vehicles and partnerships,” Koon added. “Beyond expanding the long-term rental housing platform in the U.S., a market which we have ventured into since 2015, we also see potential to build this business in other fast-growing markets such as China.” One interesting piece of the CapitaLand’s acquisition is that all of the properties it’s acquiring are Class-B properties. According to Gerald Yong, CEO of CapitaLand International, the company views these properties as value-add opportunities and has plans to improve the units and increase the rents. “We are acquiring a well-diversified portfolio of multifamily assets across several suburban markets in a single transaction, each regional market with a critical mass of over 1,000 units,” Yong said. “With leases that are generally renewed annually, we can expect to gain from the rental uplifts after the refurbishment of the portfolio that will take place in phases over the next few years,” Yong continued. “The stable, reliable cash flows of these Class B multifamily properties make this suburban portfolio more attractive than the higher-priced urban core segment,” Yong added. “Situated in well-established, well-connected rental communities, this portfolio of low-rise and garden-style properties continue to be a strong draw for middle-income and skilled professionals working in surrounding employment hubs.” In total, CapitaLand is acquiring 3,787 apartment units at a price per unit of $220,000. According to the company, these properties are operating at average occupancy of more than 90%, with average length of stay of approximately two years. As for why it sees now as the right time to expand into the U.S. multifamily business, the company said that it sees real financial upside now and in the long run as well. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 83
Equity Insight
Equity Insight
Here are the top 10 reverse mortgage lenders AND THESE ARE THE DIFFERENT APPROACHES THEY’RE TAKING TO SURVIVE THE DOWN MARKET BY JESSICA GUERIN
THE REVERSE MORTGAGE INDUSTRY has taken a bit of a beating in the past year following significant program changes from the U.S. Department of Housing and Urban Development. But lenders in the reverse space are no strangers to change. They are nothing if not resilient. Many will tell you they’ve weathered uncertain times before and they’ve come out the other side better for it. Most will say this time around will be no different. All of them will assert that home equity conversion is important, and they’ll wait it out until the tide turns, because more people will turn to tools like this one to access their greatest source of wealth. In our reporting, HousingWire has connected with dozens of lenders this year to talk about their business in the reverse mortgage space. Through our interviews and research, we were able to compile this list of the top 10 HECM lenders. Though these interviews, we also outlined the approach each has taken to stay afloat in the current climate, showing what approaches these lenders have taken to survice the down market.
AMERICAN ADVISORS GROUP: REBRAND No. 1 in the HECM space with nearly 26% of the market share, AAG is the industry’s biggest player. But even this goliath couldn’t avoid the impact of the 10/2 changes. The rule change prompted the lender to put the gas on the rebrand it had been considering, announcing over the summer that it would now be offering traditional loan products and real estate services in addition to reverse mortgages. Calling itself a holistic provider of home equity solutions, AAG says its goal is to help seniors “retire better.” “It was apparent that the HECM business model was not moving the needle on helping millions of seniors consider using home equity more strategically,” AAG CEO Reza Jahangiri told HousingWire. “We decided it was time to come at it a different way, to open more doors.” FINANCE OF AMERICA REVERSE: INNOVATE No. 2 on the list with about 10% of market share, FAR is staking its claim in the proprietary reverse mortgage realm. With Blackstone HOUSINGWIRE ❱ DECEMBER 2018 JANUARY 2019 85
Equity Insight capital to back it up, the lender has been leading the charge of the development of non-agency, jumbo reverse mortgages, releasing two iterations this year of its HomeSafe product, including the first-ever second lien reverse mortgage. “Our goal at FAR is to put people in the driver’s seat and help them get to work on retirement,” FAR President Kristen Sieffert said. “One of the key ways we’re delivering on this commitment is by continuing to expand our product options.” REVERSE MORTGAGE FUNDING: REACH OUT RMF might be the youngest lender on this list, but it’s no longer the new kid on the block, according to Mark O’Neil, national sales leader of its wholesale and correspondent channel. To retain its foothold in the space, RMF is investing in its third-party origination business, funneling resources into offering top-notch training, technology, product support and marketing to its TPO partners. “We’re spending a good deal of time, effort and energy in recruiting and training to make the reverse mortgage accessible to the traditional originators,” O’Neil said. “With the refi boom slowing down and people in the forward market looking for business, we’re focusing our resources on growing that business.”
SYNERGY ONE LENDING: MERGE This summer, Synergy One – which operates under the name Retirement Funding Solutions – made news when it announced its acquisition by Mutual of Omaha Bank. The move was a welcome development for the reverse space, which hasn’t had a major player in the game since MetLife and Wells Fargo called it quits in 2012. “Our origination force now has a clear and comparative advantage in their markets as their clients have a degree of trust around the brand,” Synergy One President and CEO Torrey Larsen said. “Mutual of Omaha Bank sees an opportunity to extend its brand, extend its capital resources and grow both the overall market as well as our company’s market share.” LIVE WELL FINANCIAL: UPGRADE Live Well Financial is betting big on tech to ride out the tough time. Last month, the lender told HousingWire it’s bankrolling a major upgrade to its lending platform – a move intended to give it a competitive edge. “Our major focus is on technology and mortgage automation,” said Executive Vice President Bruce Barnes. “We are making these moves to retain market share. The new generation of folks coming of age for a reverse mortgage are more adept at using technology, so we’re really looking ahead at the future and what it holds for us as a company.”
LIBERTY HOME EQUITY SOLUTIONS: FOCUS A subsidiary of Ocwen Financial, Liberty is tuning out the noise and concentrating on fulfilling its company promise to “change HIGHTECHLENDING: SELF-GENERATE lives.” “We continue to do what we have always done – stay focused “It’s all about leads,” said HighTechLending President Don Currie. on the needs of our customers and partners. That is why we are No. 8 on the top HECM lender list, HTL explained that it has foan industry leader,” President Michael Kent said in a Q&A with cused its efforts this year on internal lead generation rather than shelling out precious dollars on purchasing leads that might be HousingWire. “Liberty will continue to focus on delivering market-leading ser- sub-par. “We took it upon ourselves to take control of our own destiny and vice and pricing that will help our partners remain competitive and grow their business,” Kent added. “We will also focus on our to grow a lead division within the walls of HighTechLending, so we can produce our own high-intent exclusive reverse mortgage own internal efficiencies and productivity.” leads,” Currie said. “Having control of your own destiny is absolutely essential right ONE REVERSE MORTGAGE: DIVERSIFY Coming in at No. 5 on the HECM lender list, this Quicken Loans now,” he added. “You simply can’t place the survival of your comsubsidiary has just over 5% of the market share. To stay compet- pany at the altar of another.” itive, it launched its own private reverse mortgage product this FAIRWAY INDEPENDENT MORTGAGE: GROOM year, the Home Equity Loan Optimizer, or HELO. One Reverse CEO Gregg Smith said the lender felt consumers In today’s climate, closing a reverse mortgage every now and then needed more options, and that diversifying its product offerings isn’t going to cut it, and that’s something Fairway Independent Mortgage has taken to heart. This year, Fairway is putting into made sense. “We know the opportunity is there, we know the audience is motion a plan to groom its top HECM producers to excel beyond there, but we haven’t had the options, the programs, the solutions the industry average. National Reverse Mortgage Director Harlan Accola said the that they need or that they want,” Smith said. “I think proprietary has a big role to play in this market…I would say innovation is the lender will be working closely with five to 10 of their best and brightest in a push to help them close four to five loans every wave of the future for this space.” 86 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
Equity Insight
month. “We know that if we can break that barrier with our top people, pretty soon a whole lot of people will be breaking it,” Accola said. “We really believe that that will be the tipping point.” OPEN MORTGAGE: INVEST Finally, coming in at No. 10, Open Mortgage believes there is opportunity out there for those who are bold enough to go after it. The Texas-based lender is investing in tech and marketing support for its reverse channel. CEO and Founder Scott Gordon said Open is all in on reverse despite the down market. “Open Mortgage is developing technology to enhance our marketing and operations, so our market share will keep growing in good times or bad,” he said. “We think chaos in the marketplace makes it a great time to invest.” FINANCE OF AMERICA REVERSE UNVEILS PROPRIETARY REVERSE MORTGAGE HELOC Finance of America Reverse has released yet another addition to its suite of proprietary reverse mortgages, unveiling Friday the HomeSafe Select. Unlike other non-agency reverse mortgage loans on the market – some of which are fixed-rate, full draw – the HomeSafe Select offers borrowers access to 25% of their proceeds upfront, with the remainder available in a growing line of credit. The open-ended line of credit has a 5% internal growth rate and can be drawn or repaid at any time. Like the HECM, HomeSafe Select is a non-recourse loan, meaning that the borrower is not responsible should a drop in property value mean the loan balance will exceed the price of the home. Unlike the HECM, the HomeSafe Select – and its counterparts, the Standard, Second and FLEX – accommodate higher property values. While the Federal Housing Administration’s HECM is confined to federal lending limits that max out at $679,650, proprietary reverses are jumbo loans that cater to borrowers with higher home values. FAR’s HomeSafe products are available for properties valued up to $10 million and offer loan proceeds up to $4 million. Proprietary reverse mortgage products are also free of the mortgage insurance premiums that come attached to federally insured loans like HECMs. FAR provided this example of how the HomeSafe Select could be useful: With HomeSafe Select, a 72-year-old in California with an $800,000 home value and an $80,000 balance on the first mortgage may be able to receive $270,400 in proceeds after paying off the first mortgage versus receiving approximately $220,000
with the HECM. The borrower’s value in the line of credit could be $305,234 at the end of year three and $432,843 at the end of year 10. FAR President Kristen Sieffert said homeowners looking to incorporate home equity into their retirement plans want flexibility and growth. “In building this latest addition to our product suite, we saw an opportunity to bridge the last gap between HECM and existing proprietary products while also staying true to our mission to help people get to work on retirement,” said Sieffert, who was also a 2017 HousingWire Magazine Woman of Influence. “HomeSafe Select can help people leverage part of their home equity today, while at the same time growing their available funds for future needs,” she added. “We are incredibly excited to continue to be a trusted partner in removing the barriers that prevent people from achieving a fulfilling retirement.” The Select is the latest in a slew of non-agency reverse mortgages that have hit the market this year from FAR and other lenders in the HECM space. With program changes made last year affecting profitability for reverse mortgage lenders and limiting access to potential borrowers, some lenders have channeled their efforts into growing the proprietary market, hoping to target borrowers with higher home values who are locked out of the HECM. FAR, which is backed by Blackstone Group, has been instrumental in leading this charge. “We have worked hard to build what has become the most comprehensive suite of proprietary products available in the industry,” Sieffert said. “While driving this innovation is a big part of moving our industry forward, getting these tools into the hands of people who can benefit is also incredibly important.” To pick up the volume it needs to find success with the HomeSafe, FAR partnered with American Advisors Group, this spring. As the No. 1 lender in the reverse mortgage space with 25% of market share, AAG operates a massive call center and touts its products with Tom Selleck’s stamp of approval. AAG CEO Reza Jahangiri said the lender has seen an uptick in interest in jumbo reverses, and that FAR’s product advancements are helping cater to this important segment of the market. “FAR’s ability to continuously and quickly innovate the proprietary product line has enabled AAG to keep up with growing demand in the high-home value market for jumbo reverse mortgage products,” Jahangiri said. “Since partnering with FAR, AAG’s jumbo loan sales have increased significantly.” FAR said its HomeSafe select is available through its retail and wholesale channels to borrowers in California. It is also making plans for expansion, saying it expects this latest iteration to be available in additional states soon.
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CFPB Watch
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CFPB Watch
Hundreds of mortgage execs ask CFPB to change LO pay rules MBA ORGANIZES MORTGAGE EXEC LETTER TO CFPB BY BEN LANE, JEREMIAH JENSEN
ALMOST 250 senior executives at some of the nation’s largest mortgage companies want the government to make changes to the rules surrounding how they’re allowed to pay their loan originators. In October, the group of mortgage execs (organized by the Mortgage Bankers Association) sent a letter to the Consumer Financial Protection Bureau, calling on the bureau to change its Loan Originator Compensation rule. The executives write that changes to the LO Comp rule should be the CFPB’s “top priority.” The group, which includes senior leaders at Franklin American Mortgage, Guild Mortgage, loanDepot, and New American Funding, also state that making changes to the LO Comp rule will “help consumers and reduce regulatory burden.” According to the group, the LO Comp rule as currently written “causes serious problems for industry and consumers due to its inflexible prohibitions on adjusting compensation and its amor-
phous definition for what constitutes a proxy for a loan’s term or conditions.” The execs also write that the rule harms the mortgage market by limiting lenders’ ability to compete and making it harder for consumers to shop for a mortgage. To address the issues with the LO Comp rule, the execs lay out three changes to the rule they’d like to see enacted. First, the execs suggest that loan officers should be allowed to voluntarily reduce their compensation to allow them to compete more fairly in the market. “This change would significantly enhance competition in the marketplace, benefiting lenders who can compete for more loans and consumers who receive a lower cost loan offer,” the execs write. According to the group, a lender is often currently forced to decide against making an unprofitable loan because of the requirement to pay the originator full compensation on a discounted loan. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 89
CFPB Watch “For the consumer, the result is a more expensive loan or the inconvenience and expense of switching lenders in the midst of the process,” the group writes, adding that preventing loan shopping or price competition is “directly contradictory” to the bureau’s Know Before You Owe rule. The group als expressed that it wants to be able to reduce loan originator compensation when the LO makes an error in the loan process. “Greater loan originator accountability will reduce errors and encourage compliance with regulatory requirements and company policy, leading to a safer, more transparent market for consumers,” the execs write. “The present rule prevents creditors from holding their employees financially accountable for mistakes or deviations from company policy on a particular loan,” they continue. “This is contrary to the central statutory premise underlying the LO Comp rule — that compensation is the most effective way to incent loan originator behavior.” Finaly, the group wants to be able to pay varying compensation on loans made under Housing Finance Agency programs. “The LO Comp rule forbids varying compensation for different loan types or products, including HFA loans. HFA programs are particularly important for underserved borrowers such as firsttime homebuyers and low- to moderate-income families who often encounter difficulty accessing credit elsewhere,” the execs write. “However, the robust underwriting, tax law-related paperwork, yield restrictions, and other program requirements make HFA loans more expensive to produce,” they continue. “Covering these expenses is particularly difficult given many HFA programs include limits on interest rates and fees.” In addition to those changes, the group calls on the CFPB to simplify the LO Comp rule, suggesting that the bureau should “explore ways to clarify the regulation, including by specifying a clear ‘bright-line’ list of impermissible compensation factors rather than the current vague and complicated ‘proxy for a term’ analysis.” The execs close by stating that the current LO Comp rule harms both those who strictly follow the rule and consumer alike, and ask the CFPB to change the rule quickly.
MULVANEY ON CFPB REFORM, THE FUTURE, BASEBALL In an address at the Mortgage Bankers Association Annual conference, CFPB Acting Director Mick Mulvaney talked about everything from his belief in the existence of the Deep State, to CFPB reform goals and the future of the bureau and baseball. Mulvaney assured the crowd that the CFPB is here and it is here to stay, but that this is, and, if he has anything to say about it, will remain a far cry from the CFPB under Senator Elizabeth Warren. “Regulation by enforcement is over,” Mulvaney said. He was 90 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY2019
adamant that the bureau will fulfill its mission of upholding the law and enforcing UDAP, but would be taking a different approach to the interpretation of the law. He said that the stipulations against unfair and deceptive practices are well defined in the legal sense, but that the definition of abusive practices is far less clear further muddied by regulation through enforcement. “We’re not looking for ways to sue you; we’re not looking for ways to stick it to you. We’re going after the bad actors, and the bad actors are the folks who are breaking the law,” Mulvaney explained. “Our time is better spent getting those folks who are actually hurting consumers than spending part of our time going after those folks and part of our time going after folks that we just don’t like but who aren’t necessarily breaking the law” he added. Chief among his goals for reform is earning respect for the bureau. Right now, he said he feels the bureau is mired in partisan baggage and that when it issues a ruling or sues someone it is chalked up to partisan influence. Mulvaney’s hope is that the bureau would one day become a “gold-standard” regulator on the level of the Securities and Exchange Commission or the Federal Deposit Insurance Corporation. To that end, Mulvaney is rooting for greater oversight of the bureau as well as the implementation of board of directors as opposed to what he calls the “benevolent dictatorship” style of leadership currently in practice. To enact greater oversight and cut costs, Mulvaney wants to see the bureau get its own Inspector General instead of sharing one with the Federal Reserve. Mulvaney said it bothers him that, as it stands, he can walk into the Federal Reserve, ask for and receive $800 million without oversight. He hopes that in the future, that kind of power will be tempered with checks and balances. “I can go down to the Federal Reserve and get $800 million effectively with no oversight, and that’s not right, Mulvaney said. “We need to figure out a way to structurally fix that system, so that you do have the checks and balances necessary,” he added. In regard to the CFPB as a whole, for which he has been largely an iconoclast, Mulvaney said he views the CFPB as the umpire in a game of baseball. Rules are necessary and good for the game. Without them, the game would not exist. “The umpire is the person who enforces the rules. That’s a good thing and allows us to enjoy the baseball, or football or other sports. It gets out of whack is when the umpire starts picking sides between the teams…then it’s no longer a sport, it’s some kind of lopsided contest,” Mulvaney said. “If you really want it to function properly then the umpire has to be neutral.”
CFPB Watch
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We need to figure out a way to structurally fix that system, so that you do have the checks and balances necessary,”
ditional income (as many as 42 million Americans or 30% of the labor force fall into this category) are “unduly constrained” in their ability to get a mortgage. The “Self-Employed Mortgage Access Act” would expand the types of documentation that self-employed individuals are allowed to use to show they are creditworthy, while also expanding the types of documentation that banks could use to keep a loan BIPARTISAN PUSH BEGINS IN SENATE TO EXPAND in QM status. MORTGAGE ACCESS FOR SELF-EMPLOYED BORROWERS Under the “Self-Employed Mortgage Access Act,” the IRS Form Ever since the Qualified Mortgage rule went into effect a few 1040 Schedule C for sole proprietorships, the IRS Form 1040 years ago, borrowers who don’t have a traditional source of Schedule F for farming, the IRS Form 1065 Schedule K-1 for partincome have had a hard time getting a mortgage. Well, a bipartisan push is underway in the Senate that could nerships, and the IRS Form 1120-S for S Corporations could all be used when determining a borrower’s income. change that. “Small businesses in South Dakota are the backbone of our Sens. Mark Warner, D-Virginia, and Mike Rounds, R-South Dakota, announced they are introducing legislation designed economy and the heartbeat of our communities,” Rounds said. “We shouldn’t unfairly punish entrepreneurs, farmers and other to make it easier for self-employed borrowers to get a mortgage. According to Warner’s office, the “Self-Employed Mortgage small business owners because they don’t earn income on a W-2,” Access Act” would help creditworthy borrowers with non-tradi- Rounds continued. “Our legislation gives financial institutions tional forms of income qualify for a mortgage by allowing lenders flexibility in the forms of documentation that can be used when to verify a borrower’s income using additional forms of documen- applying for mortgage credit, making it easier for South Dakota families to realize their dreams of homeownership.” tation other than the W-2. The bill has the support of the Mortgage Bankers Association, “An increasing number of Americans make their living through alternative work arrangements, like gig work or self-employment,” Consumer Federation of America, and The Milken Institute. “The Mortgage Bankers Association strongly supports the Warner said in a statement. “Too many of these otherwise creditworthy individuals are Self-Employed Mortgage Access Act, introduced by Senators being shut out of the mortgage market because they don’t have Mark Warner and Mike Rounds. This bipartisan, common sense the same documentation of their income – paystubs or a W-2 – as legislation would allow the use of prudent and well-established someone who works 9-to-5,” Warner continued. “This bill will underwriting standards to responsibly expand access to mortallow these workers to supply other forms of paperwork to verify gage credit by providing lenders and investors greater certainty their income while continuing to protect consumers from pred- about standards for validating borrower ability to repay,” said Bill Killmer, MBA senior vice president of legislative, political affairs. atory lending.” “We believe consumers who own small businesses or are othThe issue, according to Warner and Rounds, is the stringent lending standards stipulated by the Ability-to-Repay rule and erwise self-employed should not face unnecessary obstacles to homeownership,” Kilmer added. “By allowing the use of the QM rule. “Since the QM standard was finalized, lenders and investors in standards already in place at FHA, VA, USDA, Fannie Mae, and the mortgage market have shown a clear preference for QM loans Freddie Mac, this legislation better ensures that all consumers due to the potential for liability associated with making non-QM are treated on a level playing field when it comes to mortgage underwriting.” loans,” the senators note. Barry Zigas, director of housing at the Consumer Federation Under those rules, unless a loan is eligible for sale to Fannie Mae or Freddie Mac or insurance from one of the government of America, said that the bill will help borrowers and lenders agencies (Federal Housing Administration, for example), QM without removing any consumer protections. “The ability to repay and associated Qualified Mortgage rules loans require lenders to satisfy the “rigid requirements” of the are among the most important consumer protections to emerge CFPB’s lending guidelines, Warner’s office notes. Those guidelines, referred to as Appendix Q, often lead to a from the financial crisis and the Dodd-Frank Act,” he said. “This “less precise calculation of income for borrowers with non-W-2 bill would provide common sense direction to the CFPB in its apincome sources, such as rental income, retirement income, or plication of the statutory requirements and give lenders and consumers alike an easier, less burdensome way to meet these tests income from self-employment.” According to Warner’s office, the effect of that imprecise calcu- without weakening their important protections for consumers.” lation is that many creditworthy individuals who rely on non-traHOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 91
Join us this summer during the California MBA’s Western Secondary Conference for the CMG Foundation’s 9th Annual Wine Tasting and Charity Auction. Our Foundations significant contributions have allowed our beneficiaries to truly impact and improve the lives of those in need. We need your help to continue growing this support!
DATE
Monday July 15th, 2019
TIME
5:30PM – 9:00PM
LOCATION
Grand Hyatt San Francisco 345 Stockton St., San Francisco, CA
BENEFICIARIES — — OUR
The Gary Sinise Foundation provides adapted smart home for those wounded in the line of duty through its R.I.S.E. program (Restoring Independence Supporting Empowerment).
The Cancer Support Community provides counseling, support groups, nutrition, exercise, and education programs to those battling cancer and their families.
The MBA Opens Doors Foundation creates mortgage assistance programs for families who are in financial need while their child is undergoing medical treatment for cancer or other illness.
For sponsorship information, please contact Taylor Stevens at 303.577.7209 or tstevens@cmgfi.com T H E C M G F O U N D AT I O N . O R G
CMG Foundation is a registered 501(c)(3), with all operating costs underwritten by CMG Financial. 100% of donations and Support for our Foundation will go directly to our Beneficiary organizations
Kudos GIVING BACK ! RADIAN DONATES $100,000 TO MBA OPENS DOORS FOUNDATION Radian Group announced a $100,000 donation to the Mortgage Bankers Association Opens Doors Foundation at the MBA Annual Convention in Expo in October. The Opens Doors Foundation supports families with sick children by assisting with their mortgage and rent payments as they navigate tough times. This fall, Radian hosted a lip sync challenge to raise awareness and funds for the foundation, challenging members of the industry to submit a video of themselves lip syncing to their favorite Kelly Clarkson song and donate to the cause. Participants raised $50,000 in the challenge, and Radian matched this effort dollar for dollar. The company announced the donation total at the MBA’s Kelly Clarkson concert during the annual meeting.
! CLOUDVIRGA HELPS RAISE OVER $50,000 FOR CANCER PATIENTS AND WOUNDED VETERANS Digital mortgage provider Cloudvirga helped raise more than $50,000 for wounded veterans and families affected by cancer by sponsoring the Finance of America Mortgage Charity Golf Tournament and Auction, which benefits the Golden State Impact Project. “The Golden State Impact project does an amazing job serving individuals in our community who are suffering serious health challenges that can affect the whole family,” Cloudvirga CEO Michael Schreck said. “We are delighted to partner with Finance of America and do our part to help make this year’s fundraiser as successful as possible.”
! PLAZA HOME MORTGAGE ANNOUNCES SIXTH ANNUAL DONATION PROGRAM WITH SUSAN G. KOMEN SAN DIEGO Plaza Home Mortgage announced its sixth annual donation program to support Susan G. Komen San Diego. In honor of breast cancer
awareness month, the lender will make a donation to the charity based on its total month-end loan volume. For the past six years, the company has contributed a total of more than $450,000 to Komen San Diego, helping thousands of women get free mammograms, biopsies, ultrasounds, care coordination, education and financial assistance This year, Plaza announced its donation will be designated to helping breast cancer patients and their families who need assistance covering their living expenses, such as rent or a mortgage, while they are going through treatment.
The slippers are a nod to DocMagic’s bunny mascot, Doc, and have been a popular giveaway at industry events over the years. “I was at a mortgage trade show and was asked by a cancer survivor if she could have a pair for a friend going through chemo and that’s what spawned the idea to donate them to worthy causes,” said Margaret Wendt, a strategic business advisor and consultant for DocMagic. “Given that it is Breast Cancer Awareness Month, we wanted to offer participants, donors and volunteers at this important blood drive something fun to take home. If the pink slippers bring a simple smile to someone’s face, then it’s a win in our book.”
! DOCMAGIC TEAMS WITH SOUTHERN
! NATIONWIDE TITLE CLEARING GIVESBACK TO MILITARY VETERANS Nationwide Title Clearing is dedicated to giving back to military veterans, participating in three different charities to support the cause. To support the Carrington Charitable Foundation Auction, NTC donated a custom-built Triumph motorcycle to be auctioned off at the Pelican Hill, California, event. The fundraiser,
CALIFORNIA NONPROFITS TO SUPPORT BREAST CANCER AWARENESS DocMagic donated a shipment of custommade pink bunny slippers that were distributed to blood drive participants at an event for Breast Cancer Awareness Month hosted by nonprofit Golden Heart LA and real estate financing firm IET Capital.
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Kudos
GIVING BACK which includes golf tournament in addition to the auction, supports veterans returning from the battle field. NTC’s kickball team also got together to play for the Gramatica Family Foundation for the third year in a row. The nonprofit foundation builds homes for veterans in the Tampa Bay area, working to provide mortgagefree, energy-efficient homes for veterans wounded in combat. Finally, NTC sponsored Seats for Service with the Tampa Bay Lightning at Amalie Arena. For the second year in a row, NTC will send four of its veterans to the enjoy the game day in an all-inclusive suite with military personnel and will donate to the United States Organizations.
AWARDS ! GENWORTH MORTGAGE INSURANCE AND VETERANS UNITED HOME LOANS WIN 2018 MBA RESIDENTIAL DIVERSITY AND INCLUSION LEADERSHIP AWARD Genworth Mortgage Insurance and Veterans United Home Loans were the winners of the Mortgage Bankers Association’s 2018 Residential Diversity and Inclusion Leadership award. The two companies were recognized for their leadership in promoting diversity and inclusion within their organizations and in their market outreach strategies. “MBA members throughout the country are committed to diversity and inclusion, which was evident from the quality submissions we received from countless members who are developing valuable initiatives and programs to better serve their employees and customers,” said Chris George, 2019 MBA chairman, and president and CEO of CMG Financial. “This year’s winners reflect the best of those submissions, and they deserve to be celebrated for creating positive change and progress in the mortgage industry.” Genworth Mortgage Insurance was recognized for its multi-faceted employee training and for encouraging open dialogue among team members to create an inclusive workplace. Veterans United Home Loans was honored for its United Initiative, which creates an inclusive work environment that encourages employees to deliver results through their own unique skill sets, backgrounds and perspectives. ! BETTER MORTGAGE CEO NAMED ONE OF 100 MOST INTRIGUING ENTREPRENEURS Better Mortgage Founder and CEO Vishal Garg was named one of 100 94 HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019
Most Intriguing Entrepreneurs of 2018 at Goldman Sachs’ Builders + Innovators Summit in Santa Barbara, California. Garg was honored for his passion for using technology and access to credit to empower socioeconomic mobility and rise above intergenerational dependency – one of the founding principals upon which he grew Better Mortgage.
! NEW AMERICAN FUNDING WINS 2 STEVIE AWARDS FOR GREAT EMPLOYERS New American Funding won two Stevie Awards in recognition of its outstanding leadership. The lender won a Gold Stevie for Employer of the Year in the financial services category for the third year in a row. Its CEO, Rick Arvielo, also received a Silver Stevie for People-Focused CEO of the Year.
SPONSORED CONTENT
Jim Wehmann EVP of FICO Scores
Executive Conversation: Jim Wehmann on FICO’s latest credit score innovations FICO leverages a wide range of new data sets to improve financial inclusion
Q. What investments has FICO made to empower lenders to safely and responsibly expand access to credit for consumers? A. We’ve been the leader in credit scoring for 29 years, since the introduction of the very first FICO score. In that time, we’ve developed a number of scores and we’ve also significantly invested in leveraging new alternative data sources to help increase credit access. We recently announced our latest version of the FICO Score XD which includes telco and rental data. The FICO Score XD goes a long way to helping the 53 million Americans who don’t have a credit score. It scores 26.5 million people, about 11.8 million who have never had access to any kind of credit. FICO Score XD for the U.S. is part of our global financial inclusion initiative where we are working in more than 25 countries around the world, to facilitate credit access for about 1 billion people. We are learning a lot from the work we’re doing outside the U.S. and now have access to different types of data such as mobile device data. It’s exciting to bring these learnings to markets around the world. Q. How is FICO innovating to foster financial inclusion? A. We continue to look at a variety of alternative data to help score more people. In countries where there are hundreds of millions outside the traditional credit model, we’re working with data in a way that looks a little different than what we 96 HOUSINGWIRE ❱ DECEMBER 2018JANUARY 2019
do here in the U.S. These insights from outside the U.S. could have broad implications here as well. For the U.S. market, in addition to FICO Score XD, we are also currently conducting research around consumer permissioned DDA data. Q. What types of alternative data is FICO using to determine a reliable, predictive credit score? A. We are continually researching new robust types of data sets and then ensuring it meets the compliance and regulatory framework in each country, as well as our own trusted FICO criteria. This could include data captured from phone usage such as ways people use their phone or the times they use their phones. In all of this data analysis, we conduct in-depth research and develop models based on whether they are predictive or not, then look to create innovative product enhancements. Q. What sets FICO apart in the credit scoring space? A. One key area is that we are independent. We’re not a credit bureau, so we don’t own or control the data. That independence enables us to work with all kinds of different data sets, and then fairly, accurately gauge the predictability and reliability of those data sets. When it comes to improving financial inclusion, one school of thought is that if you just eliminate the minimum scoring criteria you will be able to score more
people. However, we determined that this is not a reliable approach — it won’t do anything to help credit access. But if you look outside traditional credit data alone, you can get alternative data that can open some doors, so our independence becomes a strong differentiator. Also, our track record sets us apart because of the trust that people have in FICO. We’re known as a very reliable, industry-standard score. Finally, our commitment to consumers, through consumer education and financial inclusion. When it comes to our efforts in financial inclusion, we are not approaching that through easy, simple shortcuts, but difficult methods that take a very high investment and are very impactful. Q. What is on the horizon for FICO to continue addressing the need for increased financial literacy and credit access? A. We’re going to continue efforts around our FICO Score Open Access program including working with a range of financial counselors. In the consumer education space, we have just launched the FICO Score Planner, which is a new way for consumers to understand what goes into their FICO Score. It’s a tool where a consumer can put in a desired FICO Score and a time frame, and then the planner helps them understand the actions they can take to get to that desired score. FICO is really at the nexus of consumer engagement, empowerment and financial inclusion.
SPONSORED CONTENT
Nancy Langer Executive, CoreLogic
Executive Conversation: Nancy Langer on breaking the real estate tax bottleneck CoreLogic’s framework connects customers, servicers and taxing agencies for an accurate, timely process
Q. As the topic of digital mortgage evolves, how do property taxes fit the discussion? A. While lenders and servicers are trending toward more data consistency across platforms, the property tax process has remained largely unchanged. As digital mortgages become fully implemented, the real estate tax component represents a potential bottleneck with many complexities involved in navigating unique real estate tax processes for the various taxing agencies. CoreLogic facilitates property tax payments with over 22,000 agencies, and we have developed a framework to bridge connections among customers, servicers and taxing agencies. Scale will be key in the new era of property taxes, and service providers will have to focus on that to ensure and maintain accuracy and quality as our industry evolves. Q. What expectations do lenders and servicers have when it comes to real estate tax service in 2018? A. For many of us, our primary focus continues to be on the customer experience. Today, you can stream a 4K movie on a tablet, reserve a pet sitter with your phone
and see the location of your Uber driver in real-time. Despite these advancements in other industries, the scope of property tax information readily available to borrowers lags behind. Accuracy and quality are core to a positive borrower experience, and lenders and servicers are increasingly recognizing this. The trend now is to implement systems that streamline connections among tax-
to leverage unique capabilities gathered from diverse areas. For example, we recently expanded our property tax search process to incorporate functionality once reserved for insurance and appraisal industries. The new tax search process employs valuation and geospatial data validation to elevate the precision and efficiency we deliver to our tax clients. By enhancing the parcel identification
“Scale will be key in the new era of property taxes, and service providers will have to focus on that to ensure and maintain accuracy and quality as our industry evolves.” ing agencies, servicers and customers. Service alone in the new era of property taxes is insufficient. Quality is the foundation from which all performance and connectivity is defined. At CoreLogic, we continue to innovate and build upon solutions that include quality from the beginning. Q. What is CoreLogic doing to facilitate innovation? A. We are looking across businesses and industries to identify solutions that can help our clients achieve higher levels of performance. Because CoreLogic serves different vertical markets, such as the insurance industry, we are well positioned
process using standard and satellite maps with parcel overlays, our integration of geospatial data helps facilitate a more accurate and timely tax process for our clients. Regarding overall innovation, our primary input source is our client base. Today, 23 of the top 25 servicers use our tax service, giving us a large base from which to collect input, validate assumptions and explore new product ideas. Our efforts in this area will ultimately help optimize the customer experience through our focus on connectivity, transparency and a unified view of the property tax process throughout the life of a mortgage. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 97
SPONSORED CONTENT
Celeste Starchild SVP of Move Inc. and General Manager of ListHub
Executive Conversation: Celeste Starchild on serving the digital-first homebuyer ListHub makes it easy for real estate brokers to effectively manage every aspect of advertising listings online Q. We know more consumers are starting their home search journey online. How does ListHub help real estate professionals advertise online? A. ListHub provides a platform for real estate brokers to effectively manage every aspect of advertising listings online from a single, easy-to-use data distribution and reporting dashboard, at no cost. We handle the data aggregation work to effectively standardize and synchronize the data between the MLS and the real estate websites. We work with more than 60,000 brokers in 600 MLS markets to give them tools to publish their listings on more than 150+ websites and other marketing resources in our network. In addition to listing syndication, ListHub is the only source for complete and objective consumer traffic data in the real estate industry. This is a tremendous benefit for brokers — one simple place to manage all their listing advertising choices and tools to see how their listings are performing across all the sites they advertise on. Q. What changes have you seen in online search over the past decade? A. We’ve been managing real estate data since 1999 and launched the ListHub product in 2006, so we’ve certainly seen a lot of evolution in online search over the past two decades. We know from realtor.com consumer research that today’s buyers begin their 98 HOUSINGWIRE ❱ DECEMBER 2018JANUARY 2019
search online, and many of them don’t contact a real estate or mortgage professional until they’re further along in the process and when people first contact a professional, 65% expect a response within one hour. ListHub makes it easy for brokers to distribute their listings to a broad array of websites — direct from the MLS — to ensure the information is accurate and up-to-date, to better serve consumers. Q. How does your service help publishers to be competitive in today’s real estate search? A. Publishers are looking for new and innovative ways to serve the digital-first consumer and establish their unique niche in the market. As an example, Zumper is specifically focused on rentals and built their platform to be mobile-first to target Millennials. When they first launched, their tech team was spending months trying to implement and manage data feeds with individual MLSs and brokerages. That’s where ListHub comes in. We provide a normalized data feed to our publisher partners, from more than 600 MLSs, with about 100 fields of data. By leveraging a national data feed from ListHub, Zumper was able to expand its footprint quickly. In 2016 they went from 10k users per month to over 26 million in just one year. We also have a number of innovative publisher partners on the mortgage
and lending side. One such publisher, Keyboom! (also known as Listing Booster), is a RESPA-compliant, agent/ lender co-marketing solution that generates leads through property marketing. Other lenders have built consumer websites to generate mortgage leads from their own mortgage or banking client base. For the lender, one of the most valuable aspects of our model is that there are normally no additional MLS contracts to sign or hoops to jump through. Ultimately, our service allows publishers to focus their resources on building compelling consumer experiences, instead of reinventing the wheel of acquiring and aggregating listings. Q. What other changes are you seeing in the real estate industry? A. The past few years have seen a lot of consolidation among MLSs. There are more than 700 MLSs nationwide and some of the smaller associations are joining together to share MLS technology. Bright MLS, as an example, is made up of 43 associations on the East Coast. These MLS mergers present challenges for real estate tech companies that have direct feeds with the MLS and struggle to keep up with frequent changes. ListHub handles all of that data migration for our publisher customers. We are the largest single source of broker-authorized listings in the U.S., with more than 2.5 million listings running through our system at any given time.
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Knowledge Center
W H I T E PA PE R: Ellie M a e | SP ONSOR E D CON T E N T
Connecting with borrowers online A REPORT ON DIGITAL MORTGAGE TRENDS IN THE 10-YEAR wake of the 2008 housing crisis, the mortgage industry has made a substantial recovery. During this time, the widespread adoption of digital mortgage solutions has increasingly improved the loan process for both borrowers and lenders. Web interfaces, online portals, automated loan processing and sales automation are becoming standard practice, and lenders with online business models are experiencing rapid growth. Ellie Mae recently surveyed more than 500 mortgage borrowers to better understand how they use technology to get a purchase loan or refinance their existing mortgage. In this report, we offer concrete insight into what today’s borrowers have been doing online – and what they would like to do online. Here are some of our key findings:
' Online loan activity is growing in every phase of the mortgage process from research and discovery to application, qualification and approval ' The vast majority of borrowers do online research before contacting a lender ' Web self-service is the preferred method of research and the most common form of interaction with lenders across all age groups ' Online loan process activities run the gamut from comparing options to completing applications
' Most borrowers today work with lenders who provide online portals for document sharing, an experience that is tremendously popular ' Some online activity profiles vary by age group as well as by purchase vs re-fi borrowers METHODOLOGY We surveyed more than 500 consumers who took out mortgage loans over the past ten years. Survey respondents spanned age groups from under 35 to over 55. Generation X borrowers (ages 35-54) comprised the largest group of survey respondents at 43%, followed by millennials (under 35) at 29% and baby boomers (55+) at 28%. A majority of respondents obtained a purchase loan (53%), while most others refinanced (44%). The remaining survey respondents took out a reverse mortgage (3%). Of purchase loan consumers, 43% were first time homebuyers, 22% were relocating, and 13% described themselves as “move-up” buyers.
ONLINE RESEARCH AND DISCOVERY Given consumers’ growing predilection for online shopping and the wealth of information now available on lender websites, online activity now starts at the very beginning of the loan process.
To read the entire white paper, visit the Knowledge Center at knowledge.housingwire.com. HOUSINGWIRE ❱ DECEMBER 2018/JANUARY 2019 101
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W H I T E PA PE R: Visionet SYST EM S | SP ONSOR E D CON T E N T
Knowledge Center
Six ways to reduce cost of loan production by 50% STRATEGIES FOR A CHALLENGING BUSINESS ENVIRONMENT TODAY’S business environment of higher interest rates, declining loan applications, and higher cost of compliance is a challenge to all lenders. Over the last 18-24 months, with volumes declining and compliance costs going up, the average cost to produce a loan has swelled to $9,000. Most originators are reporting a net loss on each loan that they originate. When times are tough, you need to strategize your moves. The aim is to remain ahead in the race, without increasing your cost of acquisition. Also, since the loan volumes are down, lenders must keep ‘Faster Closure’, and ‘Profitability’ as the focal point. What steps can lenders take to reduce the cost of producing a loan, while ensuring faster closures? We thought of six ideas that the lender can think of implementing, which will give them quick ROI. Also, with no upfront investments involved, the lender virtually has no risk associated with these initiatives.
IDEA #1 Speed up ‘on the go’ bulk processing Within the Mortgage industry, there are several instances where originators must process loans in bulk. For example, a wholesaler trying to process multiple files uploaded by brokers across the states at one go; a correspondent lender selling loans in bulk to the principal (and indexing those loans per stacking orders handed down by the principal). Much of this work would be impossible without OCR. You can imagine – a pull of 2000 loans, with each loan file consisting of up to 500 pages – that all must be reviewed, indexed and analyzed. This one batch can consist of up to 1,000,000 pages! There is no
way manual indexing can finish this job. Similarly, for a wholesaler, especially during season, it is impossible to manage the indexing and processing load in time without using an automated tool like OCR. Investing in technology comes with up-front costs and ROI on the investments are not certain and take time. If you can use a proven OCR tool in a ‘pay per use’ model, then you don’t need to worry about any up-front costs, nor do you need to wait for any development time. You can directly start using the technology to digitize loan applications in quick time and reduce cycle time by at least 50%.
IDEA #2 Utilize ‘Pay as you go’ services and scale operations at reduced costs All of us in the mortgage industry have seen the swings in volumes over the last 18-24 months. No lender can staff up permanent resources for meeting this variable demand. Finding capable partners is the need of the hour. Having access to a vendor, who can provide back-office mortgage services on variable ‘pay as you go’ pricing model will work very well. With these pricing models, you can be sure that you can scale up your team, based on increasing demand and at the same time, in times of decreased volumes, reduce the team to manage costs.
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INDEX COMPANIES A xxxxx ................................................................................................... xx
VANGUARDS
Celebrating the 2018 housing leaders P. 32
xxxxx ................................................................................................... xx
A xxxxx ................................................................................................... xx
B
Hansen, Lucas ........................................................33, 45 Hansen, Matt...........................................................33, 45 Hardin, Christina ............................................................16 Harris, Scott ............................................................33, 46 Harris, Toby..............................................................33, 46 Hillman, John ................................................................ 66
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Ishbia, Mat........................................................................ 67
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D
PEOPLE
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A
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Accola, Harlan .............................................................. 86 Alexander, Min ........................................................33-34 Arvielo, Rick.....................................................................94
xxxxx ................................................................................................... xx
F xxxxx ................................................................................................... xx
B
xxxxx ................................................................................................... xx
Barber, Rob...............................................................33-34 Barnes, Bruce ................................................................ 86 Beasley, Gary ...........................................................33, 35 Benjamin, Jeff .........................................................33, 35 Bernanke, Ben ................................................................77 Boyle, Christina ......................................................33, 36 Brandt, Amy.............................................................33, 37 Brennan, John................................................................. 12 Bressler, Jason ........................................................33, 37 Brewer, Lori...............................................................33, 38 Bristol, Scott .................................................................... 12 Brown, Justin ................................................................... 12 Brungardt, Kevin ...................................................33, 38
K
C
xxxxx ................................................................................................... xx
Carson, Ben .....................................................................29 Cazazian, Anthony ...............................................33, 39 Cesarz, Matt .............................................................33, 39 Chee Lee, Koon .............................................................83 Choi, Yong ......................................................................... 12 Ciardelli, Victor ......................................................33, 40 Clarkson, Kelly ...............................................................93 Clem, Brenda..................................................................22 Collard, Erin .............................................................33, 40 Corr, Jonathan.........................................................26, 77 Crawford, Casey ............................................................51 Cronkright, Thomas .............................................33, 41 Currie, Don....................................................................... 86
G xxxxx ................................................................................................... xx
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Dubeck, Michael ....................................................33, 42 Dunkin, Keith ..................................................................83
Q
E
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Ebers, Tony ...............................................................33, 42 Elsayed, Khaled ............................................................43 Emerson, Bill............................................................24, 43
R xxxxx ................................................................................................... xx
S xxxxx ................................................................................................... xx
T xxxxx ................................................................................................... xx xxxxx ................................................................................................... xx
F Farner, Jay .................................................................33, 43 Ferguson, Gary ............................................................... 12 Fraas, John ..............................................................33, 44
G
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Garg, Vishal .....................................................................94 George, Chris...................................................................94 Gilbert, Chase.........................................................33, 44 Gordon, Scott.................................................................87
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Jahangiri, Reza ...................................................... 85, 87 Jehlicka, Heidi ................................................................. 12 Jenkins, Deborah...................................................33, 47 Jennings, Bob ..........................................................33, 47 Jobs, Steve ...................................................................... 44 Johnson, Mark.........................................................33, 48
K Kellam, Selene ......................................................33, 48 Kent, Michael................................................................. 86 Kharkar, Mahesh ........................................................... 12 Killmer, Bill ........................................................................91 Kolbrener, Michael............................................... 33, 49 Koutsos, Joanna............................................................ 12 Krieher, Jenn .................................................................... 12
L Ladd, Mark ............................................................... 33, 49 Langer, Nancy ................................................................97 Lapin, Eric .........................................................................22 Larsen, Torrey ............................................................... 86 Leinan, Jeff........................................................................ 12 Leonard, Shelley...................................................33, 50 Lovier, Heather ......................................................33, 50 Lykken, David ...........................................................33, 51
LMI LENDING Lenders see compelling growth with products aimed at LMI borrowers.
P. 68
BACK TO BASICS Improving team productivity could be as simple as going back to the basics. HOUSINGWIRE MAGAZINE ❱ DECEMBER 2018/JANUARY 2019
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8102 2018 SDRAUVANGUARDS GNAV E H T G N I D A E L52S EEXECUTIVES V I T U C E X E 2 5LEADING THE Y R THOUS S U D NING I G NINDUSTRY ISUOH
Sharma, Robin................................................................15 Shenn, Jody.....................................................................26 Sieffert, Kristen .....................................................86-87 Sinek, Simon....................................................................15 Slonaker, Matt ................................................................ 12 Smith, Gregg.................................................................. 86 Smith, Jeffrey .................................................................. 12 Smith, Steve ............................................................33, 55 Smith, Tim ........................................................................16 Song, Ann.......................................................................... 12 Soroye, Olumide ................................................... 33, 56 Starchild, Celeste ........................................................ 98 Steer, Michael......................................................... 33, 56 Stewart, Mark ................................................................. 12
T Taylor, Jeffrey ..........................................................33, 57 Tessar, William .......................................................33, 57 Third, John ...................................................................... 46 Triola, Rick ................................................................ 33, 58
V Vafai, Ali .................................................................... 33, 58 Velasco, Al................................................................ 33, 59
W Walter., Williams W.....................................................78 Warner, Mark ...................................................................91 Warren, John .......................................................... 33, 59 Watson, Gregor .............................................................35 Wehmann, Jim ..............................................................96 Wendt, Margaret..........................................................93 Woodwell, Jamie ..........................................................81
Y Yong, Gerald ...................................................................83
M
Z
Malaney, Sanjeev...................................................33, 51 Marie Rose, David .......................................... 33, 41, 79 Mason, Mark ............................................................78-79 Mathur, Sundeep ..................................................33, 52 Mayopoulos, Tim .........................................................24 McDonough, Andy........................................................77 McElroy, Mark .................................................................22 Middleman, Stanley ............................................33, 52 Morrison, Ward.......................................................33, 53 Mulvaney, Mick ............................................................. 90
Zigas, Barry.......................................................................91
N Nackashi, Joe..................................................................65
O Ozenghar, Beth ..............................................................51
P Park, Sung.................................................................33, 53 Phillips, Christopher..................................................... 12
R Rascoff, Spencer..........................................................24 Rodriguez, Manuel ....................................................... 12 Rounds, Mike ...................................................................91
S Schreck, Michael............................................33, 54, 93 Schwartz, Faith......................................................33, 55 Selleck, Tom ...................................................................87 Shalev, Eilon....................................................................63
AD INDEX B Black Knight Financial Services......................................................2 C Civic Financial Services .....................................................................19 CMG Financial ....................................................................................92 CoreLogic ................................................................................................ 13 B Ellie Mae...............................................................................................4, 8 F Freddie Mac......................................................................................6, 27 Freedom Mortgage ...........................................................................10 G Guidance Residential ....................................................................... 23 L LoanCare, A ServiceLink Company ............................................. 21 LRES Corporation .............................................................................. 25 N New American Funding ................................................................108 O Optimal Blue........................................................................................95 P PrimeLending ........................................................................................17 Q Quicken Loans ........................................................................................3 T The Mortgage Collaborative .......................................................... 15
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PARTING SHOT ❱ LOOKING AHEAD A seller’s market has dominated the past several years, but that is all about to change. Experts predicts next year will bring a shift to a buyer’s market as interest rates and home prices continue to rise in 2019.
CELEBRATING THE U.S. HOUSING ECONOMY’S
MOST INNOVATIVE TECHNOLOGY COMPANIES
Nominations close January 25, 2019 :Vgan W^gY eg^X^c\ ZcYh 9ZXZbWZg (&, 201 Visit us at HousingWire.com/Tech100
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