Mortgage Professional America 8.02

FICO REDUCED TO

550 FHA,VA & USDA PROGRAMS

YOUR GO -TO LENDER FOR THE

TOUGHEST

LOANS

Growing your business with the right partner has never been easier. Get started today with Carrington Mortgage Services. www.CarringtonWholesale.com/toughloans

866-453-2400

At Carrington Mortgage Services, we are committed to meeting the financing needs of those who are underserved throughout America. We have loan programs specifically tailored to credit-challenged borrowers, so there’s no need to turn away those borrowers with low FICO scores. We are your government lender of choice with loan programs, service, technology and national support to grow your business today, tomorrow and beyond.

OUR COMMITMENT TO OUR BROKERS IS UNSURPASSED. WE OFFER:

On-Time Closing Promise for FHA loans –15 Day Clear to Close on qualifying purchase or refinance loans, or your borrower receives a $500 closing cost credit.* Plus, get a prequalification letter and enjoy our early disclosure service. Submit with no AUS. Restrictions apply.

FICO minimums to 550 on government programs and expanded FHA guidelines that include manufactured housing and use of non-traditional credit.

Expanded Operations Support. Multiple operations centers offering support across all time zones provides outstanding service and fast turn times.

*Carrington will process any qualifying loan from the time a loan file is submitted to underwriting to the time it funds within 15 business days of appraisal receipt or the company will apply a closing cost credit of $500 to the loan once the loan closes. In order to receive the closing cost credit, any delay that causes the loan to close more than 15 days after appraisal receipt must be due to Carrington’s independent processes. If the delay is due to the broker, borrower’s or third party’s action or inaction or any other circumstances outside of Carrington’s control, the closing cost offer will be void. This offer excludes some loan programs, such as VA loans, USDA loans, 203K Loans Short Sales, New Construction loans, loans requiring property repairs, inspection, or re-inspection prior to closing, loans requiring condo approvals and flips. Offer is subject to revision or cancellation at any time. The appraisal received date is recorded in Pipeline Manager for all qualifying loans. Some loans may require additional information and be returned. Exclusions apply; contact your Account Executive for details. © Copyright 2007-2014 Carrington Mortgage Services, LLC headquartered at 1610 E. Saint Andrew Place, Suite B150, Santa Ana, CA 92705. Toll Free (800)561-4567. NMLS ID 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745; 2159 McCulloch Blvd 4, Lake Havasu City, AZ 86403. CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File No. 413 0904. CO: Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law. MO: Residential Mortgage Broker License 09-1746-S. NH: Licensed by the New Hampshire Banking Department. NJ: Licensed by the N.J. Department of Banking and Insurance. NY: Licensed Mortgage Banker—NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. OH: Ohio Mortgage Broker Act Mortgage Banker Exemption MBMB.850208.000 (FHA DE & VA Automatic loans only) OR: Mortgage Lender License ML-4886. PA: Licensed by the Department of Banking. RI: Rhode Island Licensed Lender, Lender License 20112809LL. VA: Licensed by the Virginia State Corporation Commission MC-5382. WA: Consumer Loan License CL-2600. Also licensed in AL, AR, CT, DE, DC, FL, ID, IN, ME, MD, MI, NM, NC, OK, SC, TN, TX, WV and WI. NOTICE: All loans are subject to credit, underwriting, and property approval guidelines. Offered loan products may vary by state. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. Terms, conditions, and programs are subject to change without notice. This information is for mortgage professionals only and is not intended for distribution to consumers. Carrington Mortgage Services is not acting on behalf of or at the direction of HUD/FHA or any office of the federal government. All rights reserved.

CONTENTS

2 | APRIL 2014

EDITOR’S LETTER / 8.2

MPAMAG.COM

FRESH BLOOD The mortgage industry these days is not for the faint of heart. Fresh regulatory challenges and good, oldfashioned competition mean originators have to be tough and determined. That’s why it’s so refreshing to see ambitious young people entering the business.

Over the last couple of months, we’ve asked you to nominate the bright young stars of the industry— people who’ve made waves in the mortgage world despite their youth. We’ve narrowed the list down to 50 “young guns”—men and women 35 years old or younger who’re making a difference in the business. These 50 young people, ranging from CEOs to ambitious originators, are the future of the industry.

Elsewhere in this issue, we take a look at the wholesale market, sitting down with some of the big guns of wholesale to discuss the exit of the big banks from that space and the relationship between brokers and wholesalers. In addition, we provide an updated, comprehensive directory of wholesale lenders.

We also have a wide-ranging chat with Residential Home Funding’s Frank Kuri, who discusses everything from the advantages of the reverse mortgage market to making the transition from broker to banker. And we talk to Carrington’s Ray Brousseau about his journey from customer service rep to industry icon.

The importance of third-party technology solutions and the resurgence of commercial lending are also spotlighted in this issue. And if you’re having trouble getting your head around a new marketing campaign, our discussion of why branding strategies fail could be just what you’re looking for.

Ryan Smith, editor, MPA

COPY & FEATURES EDITOR Ryan Smith PRODUCTION EDITORS Roslyn Meredith, Moira Daniels

ART & PRODUCTION GRAPHIC DESIGNER Red Redrico DESIGN MANAGER Daniel Williams

SALES & MARKETING VICE PRESIDENT Cathy Masek NATIONAL SALES MANAGER Chris Brezsko COMMUNICATIONS MANAGER Lisa Narroway MARKETING EXECUTIVE Alex Carr

CORPORATE

CONNECT

Contact the editor: ryan.smith@ keymedia.com

CHIEF EXECUTIVE OFFICER Mike Shipley CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil Editorial inquiries Ryan Smith ryan.smith@keymedia.com Advertising inquiries Cathy Masek Cathy.Masek@keymedia.com Chris Brezsko chris.brezsko@keymedia.com Subscriptions subscriptions@keymedia.com Key Media 7807 E Peakview Ave Suite 115 Centennial CO 80111 United States of America tel: +1 720 316 0151 Offices in Sydney, Auckland, Toronto, Manila mpamag.com Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as MPA magazine can accept no responsibility for loss

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4 | APRIL 2014

COME IN FROM THE STORM. As a tumultuous storm of regulatory changes and constrained economic conditions have forced countless lenders to close their doors in recent years, Academy Mortgage has quietly found ways to thrive, yielding both record-breaking volume levels and Loan Officer growth.

“My business partner and I joined the Academy Team in 2009, right as the market was shifting and it was becoming increasingly clear that the large bank we worked for was pulling the rug out from under us.

“We aggressively searched for a platform that would facilitate our desire to maintain local fulfillment and in-house underwriting, which gives us complete control and absolute follow-through. When we say we can do a loan, we must be able to deliver on that promise. We found this platform at Academy.

“But we have also gained something we didn’t know we were looking for—being part of an authentic culture focused on the people and communities we serve. It’s one of those things you don’t realize you are missing until you experience it. We’ve found home at Academy.” —Matt H.

Find a safe haven at Academy Mortgage for growing your career long-term. Contact James MacPherson, Executive Vice President, at (801) 568-4716 or visit www.academymortgage.com.

Corp NMLS #3113

NEWS ANALYSIS / THE DATA

HOUSING MARKET GAINS The good news is that the national housing market as a whole seems to be on the upswing, according to the National Association of Realtors. Most metro areas saw home price gains in 2013, with 62 out of the 129 markets that were tracked showing growth of more than 10%.

Las Vegas led the pack, with the median price of an existing single-family home up 47.3%. Meanwhile, Florida boasted more of the top-performing markets than any other state.

It wasn’t all wine and roses, however; four metro areas saw median prices drop in 2013, and Charleston, WV, took the biggest hit, with an average home price decrease of 4.2%.

Sacramento, CA

31.5%

PERCENTAGE CHANGE MEDIAN HOME PRICE: $343,800

Las Vegas, NV

47.3%

PERCENTAGE CHANGE MEDIAN HOME PRICE: $281,400

U.S. MEDIAN HOME SALE PRICE 2003–13

Source: US Department of Commerce

280,000 2 70 , 0 0 0 260,000 250,000 240,000 230,000 220,000 210,000 200,000 190,000 180,000

2 003

6 | APRIL 2014

2004

2 005

2 006

20 0 7

20 0 8

20 0 9

20 1 0

20 1 1

20 1 2

2 0 13

MPAMAG.COM

Source: National Association of Realtors

Charleston, WV

Washington, DC

PERCENTAGE CHANGE MEDIAN HOME PRICE: $107,000

PERCENTAGE CHANGE MEDIAN HOME PRICE: $370,800

-4.2%

Austin/ San Marcos, TX

Indianapolis, IN

PERCENTAGE CHANGE MEDIAN HOME PRICE: $151,300

PERCENTAGE CHANGE MEDIAN HOME PRICE: $113,400

-2.1%

-3.9%

Beaumont, TX

Bradenton, FL

PERCENTAGE CHANGE MEDIAN HOME PRICE: $87,800

PERCENTAGE CHANGE MEDIAN HOME PRICE: $245,700

-1.3%

26.9%

Melbourne– Titusville– Palm Bay, FL

West Palm Beach–Boca Raton, FL

PERCENTAGE CHANGE MEDIAN HOME PRICE: $172,200

PERCENTAGE CHANGE MEDIAN HOME PRICE: $322,400

30.5%

34%

32%

APRIL 2014 | 7

NEWS ANALYSIS / THE DATA

A GOOD TIME TO BUY?

75% JANUARY

68%

FEBRUARY

65%

The percentage of people who think it’s a good time to buy a home ticked up in Fannie Mae’s latest National Housing Survey, but the percentage of people who think it would be easy to get a mortgage plummeted in February from January’s all-time high of 52%. The number of Americans who think the economy is on the wrong track also spiked.

Fannie Mae SVP and chief economist Doug Duncan thinks the unusually cold winter may have had something to do with faltering consumer optimism.

“Weather may have played a role, as suggested by a 6 percentage point jump over the past two months in the share of consumers who say their household expenses are significantly higher than a year ago,” he said. “This response would be consistent with higher home heating costs. Despite the volatile month-to-month changes, we believe that the housing recovery is continuing, but is not yet robust.”

52% 50% 45%

43% 39% 35%

25% 8 | APRIL 2014

IT’S A GOOD TIME TO BUY

IT WOULD BE EASY TO GET A MORTGAGE

HOME PRICES WILL RISE IN THE NEXT YEAR

THE ECONOMY IS ON THE RIGHT TRACK

MPAMAG.COM

VOLUME DROPS 125,000

100,000

Source: Mortgagestats.com

$125,704 2012Q4* 2013Q4* * Dollars in millions

75,000

50,000

$50,793

The mortgage industry lost more than 31,000 jobs in 2013, mostly among the big banks, and it’s easy to see why. Mortgage employees were under the gun all last year after rates jumped nearly a full percentage point. The rate spike strangled the refinance boom, and big lenders—many of whom had hired extra employees to meet refi demand—suddenly saw their businesses dry up. Wells Fargo, the nation’s largest lender, saw its volume drop by 60% in 2013. Other big lenders like Chase and Bank of America also saw staggering drops.

$54,245 $25,998

25,000

WELLS FARGO

CHANGE -60% MARKET SHARE 18.97%

CHASE

CHANGE -52% MARKET SHARE 9.71%

$22,478

$13,539

$24,876

$12,559

BANK OF AMERICA QUICKEN LOANS

CHANGE -40% MARKET SHARE 5.06%

CHANGE -50% MARKET SHARE 4.69%

APRIL 2014 | 9

NEWS / ANALYSIS

RESIDENTIAL

FREDDIE NAMES MOST STABLE MARKETS

If you happen to live in North Dakota, Washington, DC, or Wyoming, congratulations – you’re living in one of the most stable housing markets in the nation. That’s according to Freddie Mac’s Multi-Indicator Market Index, which measures the stability of the nation’s housing market.

-1.45

-1.08

North Dakota topped the list, followed by the District of Columbia, Wyoming, Alaska and Louisiana. The least stable market, meanwhile, was Nevada, followed by New Jersey, Illinois, Georgia and Florida.

Markets are scored along a continuum from 12 to -12, with stable markets near zero. Weak markets appear further along the negative end of the continuum, while elevated markets appear further along the positive side.

Alaska

-0.44 Montana

North Dakota

-0.87

-1.75 South Dakota

-0.74

Wyoming

-1.53

District of Columbia

West Virginia

-1.72

HOUSING

-1.30

-1.54

Louisiana

Hawaii

Texas

CONFIDENCE SAGS

Builder confidence in the market for new single-family homes continued to hover on the low side in March, according to data from the National Association of Home Builders (NAHB).

The NAHB/Wells Fargo Housing Market Index (HMI) rose one point in March to 47, the NAHB reported. Any number under 50 on the seasonally adjusted index indicates that more builders view conditions as poor than good.

“The March HMI mirrors last month’s sentiment, as builders continued to be affected by poor weather and difficulties in finding lots and labor,” said NAHB chairman Kevin Kelly.

“A number of factors are raising builder concerns over meeting demand for the spring buying season,” said NAHB chief economist David Crowe. “These include a shortage of buildable lots and skilled workers, rising materials prices and an extremely low inventory of new homes for sale.”

The average regional HMI scores all fell in March. The Northeast dropped to 35, a decrease of three points. The Midwest also saw a three-point drop to 53. The South’s regional HMI score landed at 49 after a four-point dip, and the West saw a two-point decrease to 61.

10 | APRIL 2014

Source: Freddie Mac

REGIONAL HOUSING MARKET INDEX SCORES 100

Northeast Midwest South West

50

0

OC T Source: MBA

NOV

DEC

JAN

FEB

MAR

MPAMAG.COM

GOVERNMENT

COMMERCIAL, MULTIFAMILY ORIGINATIONS HIGHEST SINCE 2007

Commercial and multifamily originations spiked 34% between the third and fourth quarters of 2013, and were up 16% compared to Q4 of 2012. The fourth quarter of 2013 saw the highest volume of commercial and multifamily originations since 2007, according to the Mortgage Bankers Association.

+44% +19% +34%

+9%

Healthcare

Office

Multifamily lending

Retail

+24% +19% Hotel

Industrial

Source: MBA

APRIL 2014 | 11

NEWS / ANALYSIS

GSEs

FORECLOSURE PREVENTIONS

Fannie Mae and Freddie Mac completed almost 448,000 foreclosure prevention actions last year, including 99,700 in the fourth quarter. The majority of those allowed troubled borrowers to stay in their homes, according to the Federal Housing Finance Agency (FHFA).

Serious delinquencies dropped 7% during Q4 to their lowest level since the first quarter of 2009. The seriously delinquent rate fell to 2.4%.

Almost half of the permanent loan modifications completed by Fannie and Freddie in the fourth quarter

helped reduce homeowners’ monthly payments by more than 30%, and about 31% of borrowers who received permanent loan modifications in the fourth quarter saw portions of their loan balances forborne.

More than 20,000 short sales and deeds in lieu were completed in the fourth quarter. That brings the total to nearly 552,000 since the start of the FHFA’s conservatorship of Fannie and Freddie. Completed thirdparty and foreclosure sales fell 15% in Q4, and foreclosure starts were down 3%.

MORTGAGE PERFORMANCE

30–59 days delinquent 60-plus days delinquent Seriously delinquent Foreclosure starts 2013 Q4

Third-party and foreclosure sales

2013 Q3

REO inventory 200,000

400,000

600,000

800,000

Source: FHFA

FORECLOSURE PREVENTION AND HOME RETENTION

2013 Q3

70,000

2013 Q4

60,000 50,000 40,000 30,000 20,000 10,000 0 Source: FHFA

12 | APRIL 2014

Loan modifications

Repayment plans

Forbearance plans

Short sales

MPAMAG.COM

FORECLOSURE STARTS

350

IN THOUSANDS

300 250 200 150 100 50 0 2009 Q4

2008 Q4

2010 Q4

2011 Q4

2012 Q4

2013 Q4

Source: FHFA

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APRIL 2014 | 13

HEAD TO HEAD / FRANK KURI

14 | APRIL 2014

MPAMAG.COM

MAKING THE

CHANGE In the new regulatory environment, it may be time for some brokers to consider transitioning to become bankers, says Residential Home Funding’s Frank Kuri

B

eing an independent mortgage broker has a lot of appeal. But with new compliance challenges, having the support of a branch network can be a boon. We caught up with Frank Kuri, Residential Home Funding’s executive vice president of branch development, to chat about making the switch from broker to banker, the advantages of having a branch network at your back, and why originators should embrace the reverse mortgage market.

MPA: With the new CFPB rules in effect, a lot of brokers are finding compliance onerous. QM isn’t going anywhere anytime soon, so what’s the solution?

Frank Kuri: QM is multifaceted. There are different pieces of it. It wasn’t just product, but also making sure the borrower has the ability to repay. And it also impacted mortgage brokers as to how much premium they can earn. So we saw that as an opportunity to help mortgage brokers that want to operate without those cap restrictions. And one of the options that they have is to become a banker as a branch of Residential Home Funding.

“We saw [the CFPB rules] as an opportunity to help mortgage brokers that want to operate without those cap restrictions. And one of the options that they have is to become a banker” APRIL 2014 | 15

HEAD TO HEAD / FRANK KURI

MPA: So you saw this as an opportunity for brokers who want to make that transition?

FK: Exactly. Now, we weren’t rolling our hands together trying to take advantage of an unfortunate situation. We’re here to help.

MPA: So what’s the advantage of transitioning from independent broker to banker at a branch?

FK: Bankers no longer have to be concerned with the income requirements, the net worth requirements, compliance, maintaining licensing, the risk and liability associated with maintaining your own company as a mortgage broker owner. They can focus on what makes them money: originating, hiring, inspiring and training loan officers with our help.

We provide all the marketing, we provide all the back office—at our expense—so they’re free to focus on the business as opposed to everything else that’s non-productive.

MPA: Compliance is complex enough these days that a lone-wolf operator would almost have to have help.

FK: Exactly. It’s costly and time consuming. And it’s important; you have to have it more than ever. We have a full in-house compliance department, an inhouse counsel. Anybody that comes on board, they’re only focusing on what makes them money—increasing their pipeline and closing loans. Everything else, they leave to us.

MPA: You mentioned that bankers in branch networks also get marketing assistance. How does that work at RHF, for instance?

FK: We don’t just say, “Do this.” We show them—this is what’s working; this is what doesn’t work. We share the successes of all the branch managers and what we know works within the different departments and different branches.

Communication and support are number one.

When we receive calls from people who aren’t happy with their current company, we always ask, “What is it about where you are now that’s causing you to consider making a move?” The number one response that we receive—from thousands over a 14-year period—is communication and support related. “I can’t get the communication and support I need from my existing company.” After you hear that several hundred times, to not make it our core value and our mission statement would be foolish.

16 | APRIL 2014

MPAMAG.COM

“When we receive calls from people who aren’t happy with their current company, we always ask, ‘What is it about where you are now that’s causing you to consider making a move?’ The number one response that we receive—from thousands over a 14-year period—is communication and support related. … After you hear that several hundred times, to not make it our core value and our mission statement would be foolish” MPA: One of the products RHF is enthusiastic about is the reverse mortgage. A lot of originators shy away from the reverse market.

FK: It’s interesting. You have 1,000 loan officers, and three of them know how to do reverse mortgages.

We have a division within the company where they train loan officers who have no previous reverse mortgage experience on how to originate reverse mortgages. That serves the borrower well, because they’re not dealing with someone who’s inexperienced.

And the loan officer benefits, because they’re able to include that product.

MPA: So you see the reverse mortgage market as something to embrace?

FK: It’s funny. They say the ‘no-doc’ loan is back; it’s called a reverse mortgage. There’s no income or credit qualifying. The senior market—especially those that were unfortunate enough to lose some of their savings during the financial crisis—has the ability to stay in their homes and use the equity to get them through financially. It’s a great product.

MPAMAG.COM

YoungGuns

APRIL 2014 | 19

SPECIAL REPORT / YOUNG GUNS

20 | APRIL 2014

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YoungGuns

APRIL 2014 | 21

SPECIAL REPORT / YOUNG GUNS

22 | APRIL 2014

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YoungGuns

APRIL 2014 | 23

SPECIAL REPORT / YOUNG GUNS

24 | APRIL 2014

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YoungGuns

APRIL 2014 | 25

SPECIAL REPORT / YOUNG GUNS

26 | APRIL 2014

MPAMAG.COM

YoungGuns

APRIL 2014 | 27

FEATURE / WHOLESALE

FILLING THE

WHOLESALE

GAP

The giant banks may have abandoned the wholesale channel, but that void is being filled by residential lenders In the wake of the financial crisis, big banks started retreating from the wholesale market. JPMorgan Chase got out of the business in 2009. Bank of America closed up its wholesale operation in 2010, and Wells Fargo jumped ship in 2012. This March, Fifth Third Bank joined the exodus, announcing that “significant changes within the industry over the past several years” had prompted them to exit the business.

But the void left behind by the big banks is being filled by residential lenders, at both the national and regional level. Companies like IMPAC Mortgage Corp, American Financial Resources, United Wholesale Mortgage and Carrington Mortgage Services have, in the last few years, become big guns in the wholesale channel.

“I think Chase and the big guys are getting out of it because they can’t do the loans in a profitable manner. A lot of wholesale lenders out there have a lower cost of doing business,” says Frank Curry, senior vice president of wholesale lending at IMPAC. “The brokers are low-cost providers and the banks can’t 28 | APRIL 2014

MPAMAG.COM

compete with them. These guys work out of their houses or small offices, so their cost of originating is lower. … Guys like us, who are willing to partner up with those brokers—our business is going to grow.

That’s why we want to grow our business model— because we see lots of opportunities out there.”

Raymond Brousseau, executive vice president of mortgage lending at Carrington, says the big lenders also started dumping wholesale business as they became more risk averse.

“Due to the events of the last decade, most lenders —banks and otherwise—have made a flight toward ‘higher quality’ originations; those where there is less of a perceived risk,” Brousseau says.

“Case in point: back in 2005, 13% of all originations were for borrowers with a FICO score below 620, while in contrast, that same population in 2013 represented only 0.22%—one in seven down to one in 500. Further, in 2005 the average FICO on FHA originations was 620. Today, that average is 705. For similar reasons, with that change came a shift toward more direct-to-consumer lending, which was perceived to represent less risk as the process was more directly controlled by the lender.

“At Carrington, our opinion is that loans can be originated successfully through either the retail or wholesale channel, provided that the right controls are in place,” Brousseau says. “And for that reason, as others exit, we happily pick up market share.”

American Financial Resources president Corey Dubnoff adds: “I think the cost of compliance is a lot. In addition, [the banks] are being heavily regulated—more so certainly than companies like ours. I don’t believe regulators today believe in the wholesale business. I’m not sure if that’s political or what, but the mortgage broker got a really terrible rap for an economic crisis that happened for the entire world. This is a continuation of that, I truly believe. That’s why they’re getting out of the business.

Companies like AFR filling the void, obviously, is a beautiful thing for us. We understand their business.

We’ve been there before. We know what it takes to be in that business.”

COMMUNICATION IS KEY So if there’s a rich vein to mine in the wholesale space, how are wholesalers attracting brokers? The simplest way, Curry says, is simply to offer an attractive range of products.

“I think most brokers have three to five lenders they do business with. It gives them a full menu of

TOP TIPS FOR ORIGINATORS • Set the expectation.

• Whoever your partners and lenders are, do your homework.

Ask why they are in the field and what they want to accomplish.

• Have options.

If you run into challenges on a loan, be prepared to approach a different lender.

• Work on your referral partners.

Provide solid updates at least three times a week, letting real estate agents and other partners know you’re thinking of them and staying on the case. That leads to more referrals.

• Study the industry.

What you read can provide important information and updates on issues and trends that will affect your business.

Source: Eduardo “Eddy” Perez, Equity Loans

the products in the marketplace,” he says. “They look for a handful of people that cover the full spectrum of their business, and that they feel comfortable doing business with. That’s the advantage. If you work at a bank, you’ve got one product—and generally one price.”

But a key component of maintaining good broker relationships is simple common sense: be accessible to the customer.

“We believe in communicating clearly what our turn times are and what to expect. If you do that, you’re going to have a good relationship with the customer,” Curry says. “Communication is critical.”

Brousseau agrees. “Mortgage transactions have a high level of emotion involved since they affect someone’s home and their family,” he says. “So borrowers often expect close communication—and therefore brokers expect the same from us.”

Even high-tech mortgage-tracking software can’t replace a good, old-fashioned phone call, he says.

“At Carrington we introduced a new loan origination system that supports a real-time tracking program called Pipeline Manager. Brokers can access Pipeline Manager online and know exactly what stage a loan is at,” Brousseau says. “This allows for better predictability for the broker and provides their borrowers with a higher degree of confidence regarding their originator. That said, resources such as this are utilized to enhance the efficiency and APRIL 2014 | 29

FEATURE / WHOLESALE

MPAMAG.COM

transparency required in our industry—not in any way to replace interpersonal communication.”

Dubnoff says the most difficult aspect of being a broker is the difference in operations between their lender partners.

He says: “I do things differently than somebody else might, so it’s very difficult. To make it an easy process that’s well communicated, well documented, is vital. They have to understand your process. They have to understand who to call, when to call, who to send an e-mail to, when to send an e-mail. They have to have that support. If not, then it all kind of falls apart.”

A RELATIONSHIP-DRIVEN BUSINESS Communication is vital because most wholesale models are relationship driven. Brokers won’t keep coming back if their wholesaler is just a few impersonal lines of type on a computer screen or a bored voice on the phone.

“Building relationships with brokers is the highest priority of any wholesale mortgage operation,” Brousseau says. “For Carrington, forging strong bonds with our brokers not only allows us to fulfill our mission of reaching the underserved market, but it also provides us the predictability needed to grow our employee base and sustain our growth. …

Critical to the building of each broker relationship is providing a consistent and predictable experience for them. Over the past two years, Carrington has invested heavily into our infrastructure to insure that is the outcome.”

Dubnoff agrees. “It’s vital,” he says. “You listen to their needs and you try to fill their needs. You try to be a partner to them on every single loan, and you try to give them the same level of customer service as you would every single customer that you have.”

Curry says it’s all about service. “If you deliver great service and you have a strong relationship with them, they’re going to keep giving you business. We’re doing it by making the process easier, and using technology and training to make the brokers want to partner up with this. If you do that … that will build a long-term relationship with us. Brokers are good originators of loans, but they may not be the best at processing and funding them—that’s what we do.”

KEEPING COMPLIANT In the post-QM world, regulatory compliance is both more important than ever and a bigger challenge.

30 | APRIL 2014

“The entire wholesale business today, I truly believe, is a great place to be. To be a broker, you don’t have as large a regulatory compliance burden as your larger counterparts, and you make just as much money” Corey Dubnoff, president, American Financial Resources

FEATURE / WHOLESALE

MPAMAG.COM

“Mortgage transactions have a high level of emotion involved since they affect someone’s home and their family.

So borrowers often expect close communication —and therefore brokers expect the same from us” Raymond Brousseau, EVP of mortgage lending, Carrington Mortgage Services That’s why brokers need to work with wholesalers who have a thorough understanding of the latest regulatory requirements.

“Understanding the regulatory environment and having a wholesale partner that has a robust compliance department is key to the survival of any broker shop,” Brousseau says.

“We know that our industry is under a microscope and any violations of RESPA, Dodd-Frank or other policies can have dire consequences to both the originator and lender. Although brokers have a responsibility to stay up to date with the everchanging rules, we also know that this can sometimes be challenging.

“We believe that by providing sound compliance controls in our loan process—coupled with actively updating our brokers on rule changes—provides a partnership that allows both parties to thrive.”

WHAT MAKES A GOOD WHOLESALE LENDER? • Make it easy for brokers to do business with you • Build relationships; most wholesale models are relationship driven • Keep brokers up to date on compliance and regulatory issues • Keep the lines of communication open Source: Eduardo “Eddy” Perez, Equity Loans

Curry says his customers are also regularly updated on all the compliance issues. “We’ve done lots of communication through the website and direct emails to the brokers on any regulatory change. We give them as much information as we possibly can.”

BROKERS VITAL Even for diversified companies like AFR and Carrington, wholesale is a big part of the business model. That’s because, they say, the broker model is still a vital part of the industry.

“It’s a very big piece of AFR’s model, that’s for sure,” Dubnoff says.

“We continue to invest money into systems and processes and people to make it better and to grow that business. Brokers know that there are larger lenders out there that are getting out of the wholesale business. I can tell you that AFR is completely committed to the wholesale business. … I think the wholesale business is alive and well, and I think the broker is alive and well, I truly do.”

Brousseau says that wholesale plays an important role not just for Carrington but for the US housing market as well. “We believe that the broker model provides consumers with a competitive outlet to participate in the purchase and refinance market. For consumers, having more choices as opposed to relying on just the big banks creates an environment where firms must focus on customer service and improving efficiencies to drive competitive pricing. The result is that the consumer wins.”

LOOKING FOR A WHOLESALE LENDER?

Turn the page for MPA’s comprehensive directory of more than 150 wholesale lenders!

32 | APRIL 2014

Committed to Wholesale Innovative Technology o Exclusive Products Direct Access to Underwriting o Expert Sales Force

United Wholesale Mortgage is, and always has been, a wholesale dedicated company committed to the success of Wholesale Brokers!

800-981-8898 •

www.uwm.com

416230

FEATURE / WHOLESALE

www.amerisavetpo.com

x x x x

x

x x x x x x x x x x

x

x x

(866) 970-7283

x x x x x

x x x x

x

www.amnetwholesale.com

(877) 255-2266

x x x x

x

x

www.amxloans.com

(800) 398-0865

x x x x x

x x x x

www.anchorloans.com

(310) 395-0010

x x x

APEX Mortgage Corp

www.apexmtg.com

(877) 603-5496

x

x

Associated Mortgage

www.associatedtpo.com

(800) 236-0144

x

x x x

www.athascapital.com

(877) 877-1477

www.bacflorida.com

(305) 789-7000

www.wilsonmuirbank.com

(502) 479-7209

x

www.bayeq.com

(415) 632-5150

x x x

BofI Federal Bank

www.bofifederalbank.com

(858) 350-6200

x

x

x

Caliber Funding

www.caliberwholesale.com

(888) 426-7026

x x x x x x x

x x

www.carringtonwholesale.com

(866) 453-2400

x x x

www.cbconnex.com

(404) 409-3379

x x x x x x x x x x

www.citadelservicing.com

(949) 900-6630

AMX Wholesale Lending Anchor Loans Inc

Athas Capital Group

BAC Florida Bank Bankers Mortgage Co. Bay Equity

Carrington Mortgage

CBC National Bank

Citadel Servicing Corp

34 | APRIL 2014

Search this database online at www.mpamag.com

x x x x x

x x

Amnet / Bexil American Mortgage

REVERSE

Amerisave

USDA

(877) 522-0485

VA-IRRRL

www.afrwholesale.com

x

FHA STREAMLINE REFI

American Financial Resources

AGRICULTURAL

x x x x x

HOME PATH

(303) 532-4252

NONPRIME

www.afnwholesale.com

203K

American Financial Network

x

SUPER JUMBO

x x x x x x x x x x x x

x

REFI PLUS

(610) 668-2745

JUMBO

www.alliedmg.com

Allied Mortgage Group

x

VA

(816) 709-4990

x

FHA

www.ag-america.com

Ag-America

x x x

CONFORM

(615) 859-5537

REFI PLUS

www.myacopia.com

JUMBO

Acopia Capital Group

VA

PHONE

FHA

WEBSITE

CONFORM

NAME

HIGH BALANCE

OPEN ACCESS

ADJUSTABLE RATE

OPEN ACCESS

FIXED

SUPER CONFORMING

The mortgage industry’s most comprehensive guide to wholesale lenders

x x

x x x x x x x x x x

x

x x

x x

x

x x

x

x x

x

x x

x

x x

x

x x

x

x x x

x

x x

x

x x

x

x

x

x x

x x x

x

x x x

x

x x

MPAMAG.COM

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x

x

x

x x x x x x x x x

Please contact Ryan Smith at ryan.smith@keymedia.com to be added to our online database

x x x x x x

APRIL 2014 | 35

FEATURE / WHOLESALE

FHA STREAMLINE REFI

AGRICULTURAL

SUPER JUMBO

HIGH BALANCE

OPEN ACCESS

www.cmortgroup.com

(901) 316-3321

x x x x x x

Crescent Mortgage

www.crescentmortgage.com

(800) 851-0263

x x x x x x x x x x

x x x

www.directmortgagewholesale.com

(800) 924-3884

x x x

x x x x x

x x x

www.emigrantmortgage.com

(914) 785-1245

x

x x x

www.essexwholesale.com

(714) 919-8000

x x x x x x x x x x x x x x x x x x x x x x x

www.everbankwholesale.com

(866) 737-2430

x x x x x x x x x x

x x x x

Fairway Wholesale Lending

www.fairwaywholesalelending.com

(469) 252-6676

x x x

x x

First Century Bank

www.myfcbwholesale.com

(916) 287-9700

x

www.fgmc.com

(888) 295-7899

x x x

First Mortgage Corp

www.fmcbrokersupport.com

(866) 584-9222

x x x

First National Bank of America

www.fnba.com

(800) 968-3626

x x

Flagstar Wholesale Lending

www.wholesale.flagstar.com

(866) 945-9872

x x x x x x x x x x

Florida Capital Bank Mortgage

www.flcbmtg.com

(866) 295-0014

x x x x x

x x

Franklin American Wholesale

www.franklinamerican.com

(866) 326-2677

x x x x x

Freedom Mortgage

www.freedomwholesale.com

(317) 537-3005

www.fremontbank.com

(510) 505-5315

Direct Mortgage

Emigrant Mortgage

Essex Mortgage Everbank Wholesale Lending

First Guaranty Mortgage Corp

Fremont Bank

36 | APRIL 2014

Search this database online at www.mpamag.com

x

x x x x x

x x x

x

x x x x

x

x x

x

x x x

x x x

x x x x x

x

x x

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x

x

x x x x x

x

x x x

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x

x

x x

x

x

x

x x

x x

x

x x x x x

x

x x x

x

x

x x x

x

x x x

x x x x x

x x x x

x

x x

x

x x x

x

x

x

REVERSE

Community Bankers Mortgage Group

x x x

USDA

x x x x x x x x x x x x

VA-IRRRL

(888) 821-7729

HOME PATH

www.bancmac.com

Community Banc Mortgage Corp

NONPRIME

x x x x

203K

(855) 926-2700

REFI PLUS

www.coletaylormortgage.com

Cole Taylor Mortgage

JUMBO

x x x

VA

(888) 264-4663

FHA

www.cmgfi.com

CMG Financial

CONFORM

x x x x

REFI PLUS

(800) 470-6309

JUMBO

www.clearvisionfunding.com

Clearvision Funding

VA

PHONE

FHA

WEBSITE

CONFORM

NAME

ADJUSTABLE RATE

OPEN ACCESS

FIXED

SUPER CONFORMING

The mortgage industry’s most comprehensive guide to wholesale lenders

x

x

x x

MPAMAG.COM

with our fully searchable database available at mpamag.com

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x x

x

x x x

x

x

x x

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x

x

x

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x x x x x x x

x x x x x

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x

x

x x

x

x

x x

x x x x

x x x

x x

x

x

x

x

x

x

Please contact Ryan Smith at ryan.smith@keymedia.com to be added to our online database

APRIL 2014 | 37

FEATURE / WHOLESALE

FHA STREAMLINE REFI

AGRICULTURAL

SUPER JUMBO

HIGH BALANCE

OPEN ACCESS

ADJUSTABLE RATE

OPEN ACCESS

FIXED

SUPER CONFORMING

The mortgage industry’s most comprehensive guide to wholesale lenders

x x x x x x x x x x

Guaranty Trust Wholesale

www.gtwb2b.com

(615) 907-2605

x x x x x

x

x

x

Guild Mortgage Wholesale

www.guildmortgagewholesale.com

(858) 790-0660

x x x x x

x

x x

x

x

x

x x x

www.hightechlending.net

(916) 676-8941

x x x x x

x x x x x x x

x

x

x x x x

www.homemai.com

(205) 986-3098

x x x

x x x x x

x

x x x

www.homebridgewholesale.com

(855) 442-7434

x x x

x

www.homewardfunding.com

(508) 368-7925

x x

x x

www.iapprovelending.com

(714) 775-5353 ext. 146

x

x x

www.interbankwholesale.com

(847) 239-7272

x x

x

Intercap Lending

www.iclwholesale.com

(949) 274-8744

x x x x x x x x x x x x x

JMAC Lending

www.jmaclending.com

(949) 390-2688

x x

x

x

x

x

x

x

www.kinecta.org

(800) 854-9846

x x

x x

x

x

x x x

x

www.amxloans.com

(925) 207-7103

x x x x x x x x x x x x

www.libertyreversemortgage.com

(866) 751-6105

www.mtbwholesale.com

(800) 755-5881

x x x x x x x x x x x x x

Maverick Funding

www.maverickwholesale.com

(888) 616-6866

x x

McCue Mortgage

www.mccuewholesale.com

(860) 989-7946

x x x

High Tech Lending Home Mortgage of America Homebridge

Homeward Funding

Iapprove Lending Interbank Mortgage Company

Kinecta Federal Credit Union Land Home Financial Services Inc Liberty Home Equity Solution M&T Bank

38 | APRIL 2014

Search this database online at www.mpamag.com

REVERSE

(800) 444-7283

USDA

www.gogsf.com

Go GSF

VA-IRRRL

x x

HOME PATH

(949) 294-5444

NONPRIME

www.greenlightloans.com

203K

Greenlight Loans

REFI PLUS

x

JUMBO

(877) 700-4622

VA

www.gtcorrespondent.com

FHA

Green Tree

CONFORM

(866) 733-6085

REFI PLUS

www.generationmortgage.com

JUMBO

Generation Mortgage

VA

PHONE

FHA

WEBSITE

CONFORM

NAME

x x x

x

x x

x x x x

x

x

x

x x

x x x x

x x x

x x

x x

x x x

x

x x

x x x x

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x x x x x

x x

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x x

x x

x

x

x

x

x

x x x

x

x x x

MPAMAG.COM

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x

x x

x

x x x x

x

Please contact Ryan Smith at ryan.smith@keymedia.com to be added to our online database

APRIL 2014 | 39

FEATURE / WHOLESALE

x x x x x

x x x x x

x

x x

x x x

www.mimbroker.com

(888) 814-8191

x x x

x x

x

x

x x

MidCountry Bank

www.midcountrybank.com

(651) 766-7079

x x x x x x x x x x x x

x

Midland Mortgage Corporation

http://www.midlandmortgagecorp.com/wholesale-lending

(803) 978-6217

x x x x x

x

Money House

www.moneyhouseus.com

(855) 240-5626

Mortgage Assurance Inc

www.MAIbroker.com

(770) 238-1565

x x

Mortgage Services III LLC

www.msiloans.biz

(860) 372-2569

x x x x x x x x x x

x

www.msfhome.com

(877) 899-3614

x x x x x

x x x

x

x x x

www.mwfinc.com

(909) 793-1500 ext. 242

x x x x x x x x x x x x

x

x

x

www.myfirstcenturybank.com

(916) 287-9700

x x x x x x x x x x x x x x x

Nationwide Equities

www.nwecorp.com

(201) 529-1401

New Leaf Wholesale

www.newleafwholesale.com

(858) 926-7400

x x x x x x x x

New Penn Financial

www.gonewpenn.com

(877) 930-7366

x x x x x x x x x x x

Norcom Mortgage

www.norcompartners.com

(800) 932-4120

x x x x x x x x x

Northeast Home Loan

www.northeasthome.com

(603) 256-8515 ext. 3540

x

www.northwestsavingsbank.com

(877) 672-5678

x

www.nxtloan.com

(617) 232-9000

x

www.nycbmortgage.com

(888) 321-6446

x x

Mid-Island Mortgage

Mortgage Solutions Financial Mountain West Financial Inc My First Century Bank

Northwest Savings Bank NXT Loan NYCB Mortgage Company

40 | APRIL 2014

Search this database online at www.mpamag.com

x

x

x x x

USDA

(248) 203-1340

x

VA-IRRRL

home.michiganmutual.com

Michigan Mutual

HOME PATH

x x x

x x

NONPRIME

x x x x x

x x

203K

x x x x x

REFI PLUS

(619) 298-3803

JUMBO

www.mfgbanking.com

VA

Manhattan Financial Group Inc

FHA

x x x x x x x

CONFORM

(603) 606-3288

REFI PLUS

www.mmcitpo.com

JUMBO

Merrimack Mortgage

VA

PHONE

FHA

WEBSITE

CONFORM

NAME

REVERSE

FHA STREAMLINE REFI

AGRICULTURAL

SUPER JUMBO

HIGH BALANCE

OPEN ACCESS

ADJUSTABLE RATE

OPEN ACCESS

FIXED

SUPER CONFORMING

The mortgage industry’s most comprehensive guide to wholesale lenders

x x x x

x x

x

x

x x x x x

x

x

x

x x x

x x x

x x x x x

x

x x x x

x

x

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x

x x x x x x

x

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x x x

x

x x

x

x x

MPAMAG.COM

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x

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x

x x x x x x x

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APRIL 2014 | 41

FEATURE / WHOLESALE

x x

x

x x

x

x

x

(714) 727-0151

x x

x x

x x

x x

x x x

x

www.pacificunionfinancial.com

(888) 375-3357

x x x

www.parksidelending.com

(415) 771-3700

x

wholesale.newamericanfunding.com

(877) 999-0799

x x x

www.pcmwholesale.com

(925) 808-7208

Platinum Mortgage Inc

www.platinumez.com

Plaza Home Mortgage

Performance Home Loans — New American Funding Pinnacle Capital Mortgage Corporation

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x

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(770) 833-4570

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www.plazahomemortgage.com

(858) 346-1208

x x x x x x x x x x

x x

www.pmacwholesale.com

(800) 710-7622

x x x x x x x x

x x

Poli Mortgage Group Inc

www.wholesale.polimortgage.com

(781) 719-4275

Premier Home Mortgage

www.premierhomemortgage.com

(800) 864-3560

x x x

www.prmg.net

(951) 278-0000

x x x x x

www.pbmwholesale.com

(951) 686-6060

x x x x x x x x

x x x x

www.qrlending.com

(888) 766-4734

x

x

www.qlmortgageservices.com

(866) 650-6970

x x x

www.remnwholesale.com

(866) 933-6342

x x x x x x

Reverse Mortgage Solutions

www.rmsnav.com

(888) 918-1110

Reverse Mortgage USA

www.wholesalermusa.com

(800) 748-1184

x

x

www.rsmwholesale.com

(800) 520-5626

x

x x

PRMG Paramount Residential Lending Group Provident Bank Mortgage QR Lending

Quicken Loans

REMN Wholesale

Right Start Mortgage

42 | APRIL 2014

Search this database online at www.mpamag.com

x

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REVERSE

USDA

x x x

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PMAC Wholesale

x

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x

VA-IRRRL

FHA STREAMLINE REFI

AGRICULTURAL

HOME PATH

NONPRIME

203K

SUPER JUMBO

Parkside Lending LLC

HIGH BALANCE

Pacific Union Financial

OPEN ACCESS

www.pacbaylending.com

REFI PLUS

Pacific Bay Lending Group

JUMBO

(800) 543-5600

VA

www.ownerbuilderloans.com

FHA

Owner Builder Loans LLC

CONFORM

(888) 365-1522

OPEN ACCESS

www.ogiwholesale.com

ADJUSTABLE RATE

REFI PLUS

OGI Mortgage Bankers

JUMBO

PHONE

VA

WEBSITE

FHA

NAME

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FIXED

SUPER CONFORMING

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x x x x x x

x

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with our fully searchable database available at mpamag.com

AK AL AR AZ CA CO CT DC DE FL GA GU HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA PR RI SC SD TN TX UT VA VI VT WA WI WV WY

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APRIL 2014 | 43

FEATURE / WHOLESALE

FHA STREAMLINE REFI

AGRICULTURAL

SUPER JUMBO

HIGH BALANCE

OPEN ACCESS

www.tpo.stonegatemtg.com

(847) 226-0179

SunTrust Mortgage

www.stmpartners.com

(804) 291-0740

SunWest Mortgage

www.swmc.com

(562) 924-7884

www.totalmortgagewholesale.com

(888) 371-2989 ext. 103

x x

Towne Mortgage

www.townemortgage.com

(888) 778-9700

x x x x x x x x x x x x x x x x x x x x x x x

United Mortgage Corp (NY)

www.unitedmortgage.com

(800) 462-4862

x x x

www.uwm.com

(800) 981-8898

x x x x x x x x

www.ufawholesale.com

(888) 777-3311

www.usbank.com

(651) 466-3000

x x x x x x x x x x

USA Direct Funding

www.usadirectfunding.com

(888) 697-3860

x

Venta Wholesale

www.ventawholesale.com

(702) 765-4278

x x x

Victorian Finance

www.reliantfundinggroup.com

(412) 942-1010 ext. 26

x

WesLend Financial

www.weslendwholesale.com

(877) 945-4105

x x x x x x x x x x

Western Bancorp

www.westernbanc.com

(408) 578-8700

x x

Total Mortgage Wholesale

United Wholesale Mortgage Urban Financial Group US Bank Home Mortgage

REVERSE

Stonegate Mortgage

x x x

USDA

(800) 350-5363

x

VA-IRRRL

www.stearnswholesale.com

HOME PATH

Stearns Wholesale

NONPRIME

(720) 748-2557

x

203K

www.stcloudmtg.com

x

REFI PLUS

St Cloud Mortgage

x x x

JUMBO

(800) 447-3386

x

VA

www.sierrapacificmortgage.com

x

FHA

Sierra Pacific Mortgage

x x x

CONFORM

(888) 202-0878

REFI PLUS

www.rushmorehl.com

JUMBO

Rushmore Home Loans

VA

PHONE

FHA

WEBSITE

CONFORM

NAME

ADJUSTABLE RATE

OPEN ACCESS

FIXED

SUPER CONFORMING

The mortgage industry’s most comprehensive guide to wholesale lenders

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x

Our new Wholesaler Database is just one of our industry-leading resources for originators available free online at mpamag.com

44 | APRIL 2014

Search this database online at www.mpamag.com

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with our fully searchable database available at mpamag.com

AK AL AR AZ CA CO CT DC DE FL GA GU HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA PR RI SC SD TN TX UT VA VI VT WA WI WV WY

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Network Branch Database • Free Mortgage Jobs Board • Lenders Wanted Posts • Forum • News • Special Reports

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APRIL 2014 | 45

FEATURE / COMMERCIAL LENDING

THE COMMERCIAL

RENAISSANCE

Commercial lending plummeted in the wake of the financial meltdown, but it’s coming back in a big way. Now commercial lenders are preparing for what could be a record year. In the first installment of a two-part series, MPA explores the resurgence of the commercial market

46 | APRIL 2014

“Is the commercial lending industry due for a comeback?” That’s the question MPA asked back in August last year, and today the answer seems to be a resounding yes. The Mortgage Bankers Association (MBA) is projecting a record year for commercial and multifamily originations, with volume growing to $300bn—a 7% spike from 2013 numbers—and hitting $333bn by 2016. The MBA projects that outstanding commercial and multifamily mortgage debt will hit nearly $2.6trn by the end of this year and approach $2.7trn by the end of 2016.

Last year wasn’t bad either. Commercial and multifamily originations were up by about 15% in 2013, with fourth-quarter commercial originations hitting their highest volume since 2007. And the stage is already set for good things in 2014, according to Jamie Woodwell, MBA’s vice president for commercial real estate research.

“This year will once again see fewer loans coming up against their maturities,” Woodwell wrote in an MBA report. “But with still low interest rates,

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improving property fundamentals, a rebound in property prices, and higher loan maturity volumes on the horizon, we anticipate mortgage originations will continue to increase in 2014.”

And those projections are proving accurate where the rubber meets the road.

“We have been doing a lot more commercial transactions—apartment building loans, secondposition loans for seasoned investors who are looking to take advantage of other opportunities and have a strong or low rate on the first [loan],” says Pouyan Broukhim, owner of PB Financial Group in Los Angeles. “They don’t want to refinance or touch that first-position loan, but they’re looking for secondposition loans to take advantage of other opportunities that are available to them. They’re using private financing to do those types of transactions because conventional and traditional second-position lines of credit aren’t available. So we’re providing second transactions—some on a short-term and some on a long-term basis—to give the investors the capital they need to grow their portfolios.”

MULTIFAMILY MOVING UP A lot of the recent growth in the commercial sector is being driven by multifamily originations, which spiked 44% between the third and fourth quarters of 2013. That’s due mostly to the rising price of singlefamily housing moving more people to rent, according to Broukhim.

“You have people that can’t afford primary residences because the market is much hotter,” he says. “The residential owner-occupied market is very strong right now. So you’re getting a lot of rental demand. It’s a safe play for conservative investors.

And there’s actually a lot of financing available for residential income-producing properties throughout strong metropolitan areas.”

foreclose on borrowers or take over properties, so it brings the risk level lower for us. We don’t have to consider taking over a property when it’s producing income.”

Even properties that need a lot of rehab can be attractive prospects, Broukhim adds.

“On properties that are being purchased at discounted prices, like vacant properties, we see that investors are getting into deals at rock-bottom prices and spending money, making those properties into profitable, cash flowing opportunities in six to 12

“There are a lot of discounted prices, commercial properties that are available for sophisticated investors.

If the investor is sophisticated enough that they know they can turn around and find a tenant for the property, there’s a lot of low risk, high reward available” Pouyan Broukhim, Owner, PB Financial Group

MORTGAGE BANKERS COMMERCIAL/ MULTIFAMILY ORIGINATION INDEX After a drastic drop-off in 2009, originations in every sector of commercial lending are on the rise again 5 00

(Avg. 2001 quarter = 100)

45 0

RISING VALUES Rising property values and incomes helped boost the performance of commercial and multifamily mortgages last year. Delinquency rates have returned to the lower end of the historical range, according to data gathered by the MBA. All that makes the commercial market more and more attractive to lenders, Broukhim says.

“On commercial income-producing properties, we’re comforted that the income produced by the properties covers the mortgage and expenses that are incurred on a property and gives us leverage,” he says. “We’re not the type of lender who’s looking to

Multifamily Office Retail Industrial

400

Hotel

Healthcare

350 3 00 250 2 00 15 0 100 50 0

20 0 8

20 0 9

20 1 0

20 1 1

20 1 2

2 0 13

Source: Mortgage Bankers Association

APRIL 2014 | 47

FEATURE / COMMERCIAL LENDING

MPAMAG.COM

COMMERCIAL AND MULTIFAMILY DEBT OUTSTANDING BY INVESTOR GROUP IN Q4

13.3% Life insurance companies

35.5%

Banks and thrifts

months,” he says. “We provide a lot of bridge financing and short-term loans for investors who are looking to capitalize on non-income-producing properties.

They’re going in and doing improvements, and after the property becomes conventionally financeable, they usually take us out of that loan in anywhere from six months to 36 months. So we provide a lot of capital for investors who are looking to close quickly on vacant commercial properties.”

TIMING IS EVERYTHING

13.4% Others

15.4% Agency and GSE portfolios, MBS

Source: Mortgage Bankers Association

48 | APRIL 2014

22.4%

CMBS, CDO and other ABS issues

This is an especially good time for commercial investors, Broukhim says, precisely because the market is still in a recovery phase.

“There are a lot of discounted prices, commercial properties that are available for sophisticated investors. If the investor is sophisticated enough that they know they can turn around and find a tenant for the property, there’s a lot of low risk, high reward available,” he says. “Now they have to understand the cost of financing, but as long as they can factor that in there, they’re making a good deal. They’re buying at the right price point to make the transaction make sense for long-term purposes.”

RATE ALERT Stated Business Purpose Loans on Resident Properties (SFR, condo, PUD, 1-4 units)

Apartments and units (5+ residential units)

• Stated and no doc available

• Loan limits $50K to $5 million

• Refi nances up to 65% LTV, $50K to $5 million • Purchases up to 70%, min loan amount $50k to $5 million • Loan terms from 6 months to 10 years, fixed or amortized • Rates from 8.50% and up • We have second position loans available for n/o/o and investment properties up to 55%-60% CLTV

• Up to 70% on refi nance andpurchases

We Califo are Prem rnia’s Priva ier Direct te M Lend oney er

Commercial (industrial, retail, warehouse, mix-use, gas station, auto related, manufacturing and etc) • Up to 55% on refi nances

• Stated but verifi ed rental income

• Up to 60%-65% on purchases

• Loan terms: 1 year, 3 year, 5 year, 7 year and 10 year, fi xed IO or fully amortized

• Term 1 to 5 years, fi xed or amortized

• We have second position loan available for our commercial products up to 60% CLTV

Land loan (max ltv 35% refinance, 50% purchase) call for details

• 5-7 day closing available • No appraisal programs available

• 2nds up to 60% CLTV anywhere in CA • 5-7 day closing available

PB Financial Group Corp 877-700-3703 Office 866-318-4471 Direct Fax

www.pbfinancialgrp.com •info@pbfinancialgrp.com PB Financial Group Corp NMLS #357614 / PB Financial Group Corp BRE # 01522495 Disclosures: **Per FDIC Regulations Section 6500, Part 226, Subpart C, 226.24. The amount of each payment that will apply over the term of the loan is based on simple annual interest applied to the unpaid balance. Loans range from 1 day to 60 months, are interest only and include a balloon payment due at term. Finance charges apply.

Payments do not include amounts for property taxes or insurance premiums. This is not a commitment to lend. Rates and points are subject to change without notice.

INDUSTRY ICONS / RAYMOND BROUSSEAU

OPPORTUNITY

KNOCKS A winning personality, a love of new challenges and a willingness to seize chances when they present themselves have made Carrington Mortgage Services executive vice president Raymond Brousseau a force to be reckoned with Ray Brousseau hasn’t been in the mortgage industry long, but he’s already made his mark. Since joining Carrington Mortgage Services in 2011, Brousseau, as Carrington’s executive vice president of mortgage lending, has led the company to become one of the powerhouses in the retail and wholesale spaces.

Before joining Carrington, Brousseau spent 23 years with CitiGroup’s consumer finance division.

He landed that job, he says, through a combination of good fortune and good people skills.

“I was 22 or 23 when I began at Citi,” Brousseau says. “I had a little bit of collections background. My only real job prior to Citi was for a couple of years when I was a customer service rep for another consumer finance business. But I always wanted to run my own business. I always wanted to lead my own team. I was looking in the classified ads one day and I saw a position advertised for a branch manager.

The only thing listed was experience necessary in collections, which I had. But I’d certainly never managed a financial services branch before.

“I came in and interviewed with a district manager at Citi. We hit it off, and he felt that although I didn’t have a lot of experience in managing a financial services branch, my people skills, my interpersonal skills and my aptitude for numbers would be a good fit after a decent amount of training. Candidly, I didn’t 50 | APRIL 2014

deserve it, but he gave me a shot. There was nothing on paper that said I was qualified to run a financial services branch, but apparently he liked my personality. He gave me some good support and training in my first couple of quarters, and then it just took off.”

Brousseau’s likable personality had convinced the district manager to give him a shot. Now that personality stood him in good stead as he started his career at Citi.

“I loved meeting people,” Brousseau says. “These were small branches where we were embedded in the communities where I’d lived all my life, and it gave me an opportunity to sit and talk to folks every day and have a small team I was able to develop and train. It was awesome. It was like my own little business, but with the support of a very large company.

So I did the branch manager thing for a couple of years. I proved to be pretty good at it and had a lot of fun. From there I held different positions over my 23 years, mostly progressive leadership roles.”

Twenty-three years later, Brousseau was the executive vice president of Citi’s servicing division.

But when Citi reorganized in the wake of the financial crisis, Brousseau decided it was time to move on.

“When they chose to exit that business, which was shortly after the meltdown, I left. I’d met a lot of folks

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“I believe in creating an environment where people are comfortable and happy and feel appreciated. If they feel like they have the support of the organization, they’re going to be productive” APRIL 2014 | 51

INDUSTRY ICONS / RAYMOND BROUSSEAU

The spirit of the leader dictates the spirit of the team. I don’t expect anything of my team that I don’t demonstrate every day

52 | APRIL 2014

in my years at Citi who’d gone to Carrington. A couple of them were at fairly senior levels,” Brousseau says.

“One of them was Dave Gordon, who’s the COO at Carrington.”

Brousseau met with Gordon and other Carrington execs to talk about coming to work for the company.

Once again, Brousseau’s personality and vision won the day despite a relative lack of experience.

“My 23 years at CitiFinancial wasn’t exactly mortgage banking,” he says. “It was running consumer finance branches, which certainly dealt in depth with credit; we did all the underwriting in the branches.

It dealt with customer service, certainly. We did mortgage lending, but it was all portfolio based. That model really wasn’t a traditional mortgage banking business. When my association with Dave Gordon led to a discussion about taking the mortgage banking business and building it, and Dave and the Carrington leadership threw me the keys and said, ‘Go build a business,’ on day one I couldn’t tell you the difference between an FHA, a VA or a USDA loan. But when I came on board, because I didn’t know those things, it afforded me a couple of real opportunities.

“Number one, it afforded me the opportunity to question everything and not have any preconceived notions about how things should be done. But then, more importantly, it really forced me to depend on my leadership team to help me make the right decisions. It allowed us to work closely together and do a great job building what we’ve got today.”

And today Brousseau has a pretty big job.

Carrington is an extremely diversified company, covering almost every aspect of real estate transactions, from asset management to servicing to property preservation. Carrington Mortgage Services alone is licensed in 43 states, the District of Columbia and Puerto Rico.

“My role within Carrington is to run that mortgage business,” Brousseau says. “It’s really three channels.

We’ve got a retail channel that consists of a couple dozen branches. We’ve got a wholesale channel that’s got 53 account executives across the nation. We’ve got a centralized lending business based in the home office that generates direct-to-consumer business anywhere we don’t have a branch, and they also drive refinance business out of the service portfolio. My role is to run that business. That includes sales leadership, operations leadership, secondary management, administration, marketing and all points in between.”

That’s a lot to keep in hand, and Brousseau freely admits that the job would be impossible without

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exceptional managers.

“There’s a ton going on and I can’t do it all by myself,” he says. “The only way I maintain any level of sanity is the confidence that I’ve got really good people under me. When we’ve got something really challenging to do and they’ve signed up for it, 99.9 times out of a hundred they’re going to get it done.

And that enables me to do what I need to do, which is focus on strategic direction and the future of the business. It’s management 101—making sure first and foremost you’ve got really good people under you.

Then, obviously, it’s prioritization. Make sure you don’t put the business at risk. Protect your integrity.

Focus on the client.”

And most of all, he says, lead by example.

“The spirit of the leader dictates the spirit of the team. I don’t expect anything of my team that I don’t demonstrate every day—whether that’s work ethic, communication, treatment of our folks or accessibility.

“We also put a lot of emphasis on vertical alignment,” he adds. “It’s very important to make sure that what’s important to me is what’s important to my direct reports and what’s important to their direct reports—all the way down the organization to the associate that started with us yesterday. When you get everyone on the same page and you make a decision to make a left turn, you’re likely to make a left turn. When you decide to make a right turn, you’re likely to make a right turn, because you’ve got everyone aligned. There’s a lot of things you need to do to make sure you get vertical alignment, but it starts with realizing how important it is. Then it’s communication, communication, communication.

And once again, the spirit of the leader dictates the spirit of the team. You need to make sure you have leaders who are actively involved in the business and roll up their sleeves and get the work done.”

Brousseau believes that when leaders show they’re willing to get in the trenches and do the work, the positive effects reach every member of the team.

“I believe in the ‘Fish’ philosophy—the philosophy based on the fish market up in Seattle,” he says, referring to the world-famous Pike Place Fish Market, named one of the country’s “most fun places to work”

by CNN. “It’s all about having a positive attitude— choosing the attitude that you bring to work every day, having fun with the folks that you work with every day. I believe in creating an environment where people are comfortable and happy and feel appreciated. If they feel like they have the support of the organization, they’re going to be productive.”

FEATURE / TECHNOLOGY

TECH TALK In today’s regulatory environment, the days of originators figuring out a loan with a pencil and a piece of scratch paper are long gone and technology solutions are more critical than ever. Here’s how to get the most out of them

As the mortgage world has become more complex, lenders and originators have come to rely more and more on third-party technology solutions to keep their businesses up and running. Cutting-edge software has gone, in the last couple of decades, from being a convenience to being a necessity.

“Twenty-three years ago we were in the process of replacing dot matrix printers with laser printers.

That was huge,” says Dennis Boggs, EVP of business development at Calyx Software, which provides loan origination, underwriting and other software. “Back then, we were really just a replacement for forms.

Then we went to ordering services from the software.

The software was first just a form-replacement thing, then it became a service-ordering thing, and finally it became the hub.”

KEEPING COMPLIANT Of course, with the advent of the Consumer Financial 54 | APRIL 2014

Protection Bureau (CFPB), technology solutions have assumed an even greater role in the mortgage process.

“Compliance has always been an issue, but most people were operating out of the guide for Fannie and Freddie,” Boggs says. “Now we have the CFPB and major compliance issues, and all of a sudden things got really complicated. The idea of trying to do it all yourself on a spreadsheet is nearly impossible.”

Tech providers can often respond to regulatory changes faster, too, says DocMagic president and CEO Dominic Iannitti.

“With the change in the appraisal delivery requirements, we were able to leverage our eSign platform to facilitate the electronic delivery of those appraisal reports within three days of receipt and get an acknowledgment of receipt executed electronically,” Iannitti says.

“By utilizing those components, we were able to give our clients a way to come to market with a strategy overnight. Just by putting together the right blocks from our product offering, we’re able to say, ‘Hey, do it this way and it satisfies the need.’ I don’t know if someone was trying to do it themselves if they would have the authority over all the pieces to make that happen.”

The mortgage process is complicated, Boggs says.

“There’s just an amazing number of people in the transaction, so there’s lot of complexity. The CFPB is creating complexity—and that’s good for software vendors.”

That complexity is also why originators need a comprehensive loan origination system more than ever, Boggs adds.

“Compliance is getting things right, doing things right—but there’s all the dialogue that takes place. If you have all these e-mails floating around outside the system or people talking on the outside, the LOS can’t know that. In the past, we wanted to keep that inside the system for convenience. Now we want to keep them inside for compliance.”

WORKING TOGETHER But effective technology solutions aren’t about finding one provider that claims to do everything. Rather, they’re about finding a number of providers—each with expertise in a particular area—that can work together to create a seamless whole.

“Part of being a strong technology provider in the industry is strong industry knowledge,” says Michael Morford, DocMagic’s director of product development.

“Through and through, we are a forms provider. That is our expertise. That’s why clients come to us and

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not the static forms providers that are out there. Our intimacy with their business and delivering technology solutions is the value for them.”

Iannitti adds: “We often get questions about expanding our scope in the space—but we’re good at what we do because of our expertise in that space.

The more you broaden the scope, the more you water down that expertise. That’s just providing technology and not really being able to adapt to client needs.”

That’s why originators should make sure their tech providers are compliant with the Mortgage Industry Standards Maintenance Organization (MISMO), Boggs says.

“You’ve got all these various systems. When you design a loan processing or loan origination system like ours, you’ve got to put all these fields in them— thousands of fields. And you’ve got to name them,” he says. “And undoubtedly, whatever other people named them in their systems isn’t going to be the name in yours. Obviously you need standards. This is what the MISMO is about—creating data standards.”

Iannitti agrees. “We’re a strong promoter of industry standards,” he says. “… One of the things to look for in technology providers is: what is their relationship to standards within the space? The dynamic between a company and the standards within the industry becomes mission critical. It’s not only how you talk to me, but how I talk to the other people you talk to. … These are valuable relationships, and if leveraged correctly the value is greater than the sum of the parts.”

LEAVE IT TO THE EXPERTS The one tech solution most lenders and originators shouldn’t try, say the experts, is attempting to produce their own proprietary system.

“Over the years, it’s been traditionally the biggest mistake a company could make,” Boggs says. “You

get a couple of techies in there with an understanding of mortgage, but no understanding of software development and code; they just bite off way more than they can chew. Normally what happens is that they keep it going for a while and then they give it up. Generally speaking, those things fail.”

Iannitti agrees, illustrating the point with a discussion of BorrowerMobile, a DocMagic product intended to streamline communication between borrowers and lenders.

“We developed BorrowerMobile because we saw there was a need to enhance the relationship between the borrower and the lender, especially during that time before closing when the lender found that their relationship with the borrower was wavering. Their clients were less than happy with the process during that time,” Iannitti says. “We decided that we would try to build a tool that would enable them to keep the warm and fuzzy relationship going. If each of those clients came to the conclusion that they needed a tool just like that, they’d each have to come up with a strategy and create their own solutions. You can see the waste that would occur. By a vendor such as us coming up with an idea like that and leveraging our existing relationships with the systems of record … all they need to do is flip a switch or check a box and they have access to that. Mortgage companies are not software vendors or software developers. They absolutely need the assistance of providers like us.”

The “moral of the story,’’ Morford adds, is that when you engage a partner to help you in your business, you have to trust their expertise.

“Let them do it,” he says. “Technology providers have a lot to offer. Aligning yourself with a partner is also about finding someone who shares your values, shares your vision, and who you can trust to execute that portion of your business so you don’t have to micromanage it anymore.”

“Mortgage companies are not software vendors or software developers.

They absolutely need the assistance of providers like us” Dominic Iannitti, president and CEO, DocMagic

APRIL 2014 | 55

BUSINESS STRATEGY / BRANDING

WHY BRA

STRAT

FAIL Far too often a company’s shiny new branding strategy fails to live up to hopes and expectations.

Jean-Luc Ambrosi explains the common reasons for failure, and what companies can do to get their branding strategies right

56 | APRIL 2014

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NDING

EGIES It finally happened: the new brand strategy was launched with pride and with the hope that it would reinvigorate the organization’s image. But a few months went by and the hopes didn’t materialize.

It all looked like a waste of money and effort.

It’s not uncommon for brand strategies to not deliver—or to be perceived as not delivering—concrete outcomes. The reasons for this can be varied, with the usual suspects being poor strategy or poor implementation.

But there is more to it than that, and often it comes down to the root cause of how brands are managed within the organization.

No matter how big or small your organization, whether you are a large financial services provider or a boutique firm, one of the most fundamental reasons for success or failure is the fact that branding is often considered separately to the business.

Brand strategies and their implementation should not be confined to the ability of the brand manager, the executive sponsor or the founding partner. Brand strategy is holistic by nature; it includes all areas of the organization, from communication to products and service delivery.

And this is the crucial point. Brand strategy does not sit on its own, in some remote corner office, nor does its implementation. It is required to be worked on throughout the organization and at all levels.

DIFFERENTIATION

The brand strategy is what allows your organization as a whole to differentiate itself from the others: what you stand for, how you deliver value-add to your customers, what makes you special, and how you go about delivering it today, tomorrow and the day after.

So how do you build a successful brand strategy?

There are five key elements to consider:

1. A clear definition of vision and purpose.

2. A leadership and culture that promotes the vision and purpose.

3. A structure that supports the delivery of the vision.

4. The integration of business intelligence to support the decision-making process.

5. An image and communication strategy and

implementation that truly reflects the brand difference and speaks the language of customers.

These five points cover how the brand is managed internally and how it is expressed to customers. It starts by defining a clear vision, a reason for being; defining what difference and value proposition the brand is bringing. It must be set in concrete terms, understood by everyone involved, unambiguous and achievable. This is not about a mission statement;

Most branding strategies fail … because they tend to be treated like a beauty treatment

APRIL 2014 | 57

BUSINESS STRATEGY / BRANDING

this is about being clear about who you are (and are not), and where you are going.

The leaders of the organization must then share this vision, embody its value concretely and ensure that their teams are fully on board, irrespective of the size of the teams. This really means that the first aspect of branding communication is about internal communication, to create internal buy-in.

Brand strategy is holistic by nature; it includes all areas of the organization But this alone does not suffice. For the message to work throughout the organization, the structure must be supportive. People’s roles must be aligned to the brand promise; training and support must be provided in key areas, and effort allocation clearly defined. For example, if your value proposition is to provide the best-quality products and services in your category, your client services team must not be driven by the objective of closing all calls within three minutes!

EXECUTION

Jean-Luc Ambrosi is an award-winning marketer and recognized expert in branding and customer relationship management. He is the author of the new book, Branding to Differ: A Strategic and Practical Guide on How to Build and Manage a Successful Brand.

58 | APRIL 2014

OK, but where is the branding execution in all this, you may ask? Where is the new logo, the advertising campaign, the new collateral? To be able to embark on the communication aspect, you must not only be clear about your own vision and road map but you also need to understand your customers.

This is where insights and business intelligence play a role: the more you understand your customers, the more you can appeal to them.

In a boutique environment you are likely to have a clear idea of how customers come to you and why. In larger organizations, market research and customer behavior analysis will help frame a vision of who your customers are, where they come from and why they buy from you.

Once you are able to build an image of your customers, understand their purchase behaviors and understand their attitudes, you are able to shape your go-to-market strategy. This allows you to build a communication plan that both reflects your brand promise and is relevant and appealing to your prospects and customers.

This is the other point to remember: branding strategies must be relevant to your customers. It’s about them, not about you.

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The communication aspect is the last component.

The clearer the vision, the more aligned the organization, the greater the understanding of prospects and customers and the greater the ability to build an effective communication strategy.

So the communication strategy is about creating a clear message that reflects your entire organization as big or small as it may be, and expresses it in a language and format adapted to your audience.

HOLISTIC FOUNDATIONS Many organizations consider branding strategy to be a communication exercise and leave it to the marketing department or advertising agency to come up with the goods. While you should rightfully leave the communication techniques to the experts, the foundation, as we have discussed, must be comprehensive and holistic.

This leads me to one conclusion: the reason most branding strategies fail is that they tend to be treated like a beauty treatment. A change of name, a change of logo, a change of look and feel, a change of tagline—their effects are only skin deep and therefore do not last. These components are only the visual representation of what the brand stands for.

This leads to disjointed messages, with your advertising and website saying one thing, your sales people another, and the customer experience following yet another path. The result is a lack of consistency, a disparity between promise and delivery, and the negative impact this can create.

As brands are fundamentally a promise, the delivery of this promise must follow through to engender customer satisfaction, repeat purchases and word-of-mouth recommendations.

Customers have never had more options to choose between different brands and products than they do today. Therefore they have the ability to switch brands faster than ever before. So if your brand promise tells one story and your delivery another, your branding exercise is nothing more than a short-term sales effort and your brand will suffer over the medium to long term.

To succeed, branding must be viewed holistically throughout the organization and not as an isolated communication exercise. It needs to be embraced at every level, from top management to client-facing staff, and, most importantly, the strategy must be based on a thorough understanding of what the brand stands for and how it impacts on customers.

BUSINESS STRATEGY / COMMUNICATION

STANDING IN

THEIR SHOES

Making sure you understand a potential client’s world view is often the best way to effectively influence them, argues Roger Ellerton

As a mortgage broker, you are constantly influencing others to accept you, your ideas, products or services.

Many people have difficulty influencing others because they tend to use the same strategies and emphasize the same needs and values with other people that they would like other people to use with them. Alternatively, they take the ‘spray and pray’ approach, hoping their clients will find something useful in the information provided.

Each of us has different needs and different strategies for buying. To be truly effective at influencing others, you need to view the situation from their perspective; that is, to determine what is important to them and how they like to purchase.

Take me, as an example: I am not a mortgage broker.

From my perspective, all mortgage brokers are the same—you have access to mortgages with various rates and features. It is up to you to be the difference that makes the difference. I want you to help me feel good about the process, and to allow me to buy the mortgage that I need rather than sell me the mortgage.

DETERMINE YOUR CLIENT’S NEEDS AND VALUES Far too often we think it’s the product or service that people want to buy. In reality, people buy the benefit that the product or service provides. If you are not certain what is important to your client, you will not be able to present your products or services clearly.

Having an understanding of your client’s needs and values can: • shorten the whole influence process • provide a better understanding of how to present your offering • lead to a better agreement for both parties • give you an opportunity to suggest something the other person forgot, did not think was possible, or that was out of their awareness • create a firmer foundation on which to conclude this and future interactions positively

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How do you become the difference that makes the difference? Begin by asking questions. Listen for what is important to your client and how they express what is important to them.

The words and phrases we use give away our world view. By listening carefully to a client’s communication style, we can work out what’s important to them, and adjust our responses appropriately Some clients will come to you with their minds already made up as to what is the best mortgage for them, having usually obtained ‘expert’ advice from their friends or an internet search. They may be incorrect, but rather than telling them why their choice is not a good idea given the current financial climate, or simply offering the best available product, acknowledge their choice and explore the reason behind it. Once you have clearly identified the underlying need or value, you can raise the possibility that this need could be addressed in ways that provide additional benefits.

With some people, you may have to ask lots of questions. With others, you may have to interrupt politely to ask questions to get them back on track.

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A client’s needs and values can be intangible, such as respect, or tangible, such as a monthly payment that is within their budget. Having an understanding of your client’s specific needs and values provides clarity on what is truly important to them and will help you recognize where you can compromise, suggest trade-offs or hold firm.

SPEAK TO ME IN A WAY THAT MAKES ME FEEL UNDERSTOOD Each one of us experiences the world around us in our own unique way; that is, we tend to focus on certain types of information to the exclusion of others.

For example, some people focus on what they want to achieve; others are more interested in avoiding potential problems.

With the former, you would emphasize how your proposed solution would help them to achieve what they want. With the latter, you would point out how your proposed solution would allow them to avoid potential problems.

The words and phrases we use give away our world view. By listening carefully to a client’s communication style, we can work out what’s important to them and adjust our responses appropriately. And these are exactly the words you can use to motivate them. Listen for the key words and phrases that betray your client’s views, and use the same words and concepts to explain your offering.

The added advantage is that these words also have a clear meaning to your clients, reducing the risk of misunderstanding. Therefore, if they talk about ‘avoiding a potential problem,’ then say that when presenting your offering, instead of referring to ‘mitigating undesired consequences.’

1

TOWARDS VS AWAY FROM

Towards people are focused on their goals. They are motivated to have, achieve and attain. They are clear about what they want.

Key phrases: accomplish, attain, get, achieving, goals, results and outcomes Away-from people often see only what may go wrong in a given situation; they notice what should be eliminated, avoided or repaired. They are motivated when there is a problem to be solved or something needs fixing.

Key phrases: avoid, steer clear of, prevent, eliminate, solve, get rid of, fix, prohibit

2

INTERNAL VS EXTERNAL

Internal people have internal standards and use them to make their own judgments about you or your offering. They have difficulty accepting other people’s opinions. If they receive negative feedback regarding something they believe to be correct, they will question the judgment of the person giving the feedback. They assess the validity of information from outside sources according to their own internal standards.

You can motivate this type of person with the following phrases: Key phrases: I just know; it feels right; I’ll be the judge of that; I know what’s best External people need outside direction and feedback to decide on the mortgage that is best for them. Without external validation, they may feel confused. They will turn to you as an expert for your opinion.

Key phrases: according to the experts; your friends will think highly of your choice; is this the product most people are choosing?

3

OPTIONS VS PROCEDURES

Options people are motivated by the possibility of doing something in an alternative way. They enjoy bending the rules or exploring new ideas and possibilities. An options client may continue to explore other alternatives, even when the best one for their situation has been identified.

Key phrases: alternatives, bend the rules, flexible, unlimited possibilities, expand your choices, options Procedures people like to follow established rules and processes. They are more concerned about how to do something than about why they should do it.

Bending the rules is sacrilege. A procedures person will be interested in the process, rather than the outcome. To motivate a procedures person, for example, state that there are five critical steps to acquire a mortgage. Tell them what these five steps are. Then lead your client through these steps in the order you specified.

Key phrases: correct way, tried and true, first, then, lastly, proven path

Each of us has different needs and different strategies for buying.

To be truly effective at influencing others, you need to view the situation from their perspective

Roger Ellerton is a public speaker, coach and author. This article is based on his book, Win-Win Influence: How to Enhance Your Personal and Business Relationships. For more information, see www.renewal.ca.

APRIL 2014 | 61

LIFESTYLE / DAY IN THE LIFE

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Day in the life of...

Jodie Tanga, director of business development, Pacific Rim Mortgage 4:45am: It’s kind of crazy. I wake up at 4:45 and work out for an hour from 5 to 6. Then I make breakfast for the family, my son’s lunch and my lunch for the day. That’s done by 6:30. Then I get ready.

7:00am: At 7 I wake up my son and my husband and we walk the dogs. We’re back from walking the dogs by 7:40 and we eat breakfast.

8:00am: I’m out the door by 8 while my husband goes to drop off my son at school.

8:30am: I’m in the office by 8:30. The first half an hour is just follow-ups with our processors and funders to make sure all the loans we’re supposed to be funding are funding.

9:00–10:00am: Usually from 9 to 10 I try to do callbacks. If there’s any voice messages I haven’t responded to or any new prospects, buyers, that I sent information to, I try to give them a call or an email saying, “Just checking to see if you got the info, and I wanted to touch base and talk more about it.”

10:00–11:00am: I’ll do emails. That’s all kinds of things. Those e-mails can be to prospects, preapproved buyers that aren’t in contracts, realtors I may not have heard from lately or that may have e-mailed me scenarios, and also active in-escrows— making sure I’m communicating with the processors and all that. For new implementations, it’s the third Friday of every month. The fourth Tuesday of every month is time-blocked for action items related to whatever that implementation is.

11:00am: That’s usually in-escrow type “fires.” If there are any issues, I at least try to deal with them —or at least get the ball rolling on the resolution at that time.

On a day that I don’t have a signing, pretty much from 1 to 6, I’m just on the phone.

I’m calling people that have been referred to me, I’m calling real estate agents…

I’m on the phone a lot

Jodie Tanga

1:00–6:00pm: On a day that I don’t have a signing, pretty much from 1 to 6, I’m just on the phone. I’m calling people that have been referred to me, I’m calling real estate agents. I’m touching base with insurance agents, touching base with our current escrows to make sure they don’t have any issues or questions—just handling any issues that come up.

Theoretically, I should be on the phone and timeblocking for emails. It doesn’t always work out that way, but that’s the way I try to do it. I’m on the phone a lot. And every two hours, I’m breast-feeding my eight-month-old baby. So she has to get slotted in there during the whole day. She’s in the office with me; we have a nursery in the office. So that takes up time.

3:00pm: One day of the week I leave by 3 to take my son to swim lessons. I schedule it that way so I’ll have to leave. If I just casually said, “Oh, I’m trying to make family time,” I wouldn’t leave.

6:00pm: I try to be out of the office once a week before 3, twice a week before 5. The other two days I’ll be in here until at least 6 or 7, and I work every other Sunday. The last thing I do before I leave is make a list for the next day. That’s really important.

7:00pm: When I get home, dinner is usually cooked.

12:00pm: I also usually have two lunches a week, either with a past client, a new realtor, or a solid realtor or referral source.

62 | APRIL 2014

So we’ll all sit down and eat dinner. The rest of the time is with the kids, just reading or watching a movie.

Then they get bathed and I put them to bed.

LIFESTYLE / FAVORITES

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Favorite things Heidi Frigano, EVP of marketing, United Northern Mortgage Bankers Heidi Frigano is something of an anomaly—a New Yorker who can’t get enough of country music or skiing in the mountains of Colorado. But she still loves a good New York strip steak

Heidi Frigano

Vacation spot: I’m going to say Colorado.

Breckinridge, Vale, Aspen, the mountains.

Drink: I switch around. Right now I guess the drink of choice if I’m out for the night—well, with dinner it would be a pinot noir. If I’m at a bar, a margarita on the rocks.

Music: Country music. I’m an oxymoron. I’m from New York, my favorite place to vacation is Colorado, and I like country music.

Place to be: At the top of a mountain ready to make my first run of the day. On Friday I’m the happiest person in the world, because I know I’m going skiing.

Sport: Skiing. I just like the freedom, the concentration, the skill. The workout, the cold whipping in my face—I love every aspect of it.

Celebrity: My favorite living celebrity would be Meryl Streep. Dead would be Bette Davis.

Movie: My hobby is movies. Other than skiing, my second love in the world is movies, so to pick a movie is really hard for me. I guess I’d say The Man Who Came to Dinner. I love classic movies.

Food: I would say my favorite food would be a good steak dinner—a nice New York strip. If I were on death row and they said, “What do you want for your last meal?” that’s what I’d pick.

Favorite thing about the mortgage industry: The challenge and the ever-changing platform.

You have to be on top of things and come up with new and innovative ways to market yourself. Every day is different.

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SOCIAL / MBA REGIONAL CONFERENCE

Mortgage lenders, originators and vendors gathered in Atlantic City, NJ, in March for the Mortgage Bankers Association’s regional conference. MPA was on hand to capture a few of the attendees on camera

Marc Elentrio, account executive, APEX Mortgage Corp

Best Rate Referrals account manager Devin Imig (left) and founder and CEO Raymond Bartreau

64 | APRIL 2014

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NFL legend, author and speaker Vince Papale and MPA national sales manager Chris Brezsko admire our last issue at the American Financial Resources booth

The Carrington Mortgage Services team shows off the latest issue of MPA

Frank Kuri, SVP of branch development, Residential Home Funding

Tyler Rhea, branch production manager, Norcom Mortgage & Insurance

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YOU ORIGINATE, WE CLOSE, IT’S THAT SIMPLE. 877.522.0485 www.afrwholesale.com/wd Lender NMLS 2826. AFR Wholesale, a division of American Financial Resources, Inc. is a nationwide wholesale residential mortgage lender and an approved lending institution.

The company is a GNMA issuer, FNMA seller/servicer, FHA Mortgagee, USDA National Lender and VA Automatic Lender. This information is provided to assist business professionals.

This is not an advertisement extended to the consumer, as defined by Section 226.2 of Regulation Z. - Equal Housing Lender - Equal Opportunity Employer. Corporate office located at 9 Sylvan Way, Parsippany, NJ 07054.

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