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Detroit Launches Mortgage Program to Bridge Appraisal Gap Detroit Mayor Mike Duggan has unveiled the latest effort to revitalize his city’s beleaguered housing market: Detroit Home Mortgage, a new program designed to solve local appraisal gap problems. Dubbed a “game-changer” by the mayor, the program enables borrowers to receive a first mortgage for the appraised value of their house (less their 3.5 percent down payment) and a second mortgage up to $75,000 to fill the gap between the appraised value and the sale price and/or the cost of renovations. The program aims to increase homeownership, property values and reinvestment in any Detroit neighborhood where the appraisal gap exists. The banks participating the Detroit Home Mortgage program—Huntington Bank, Flagstar Bank, Talmer Bank and Trust, FirstMerit Bank, Liberty Bank—will offer loans at the same low interest rates with no bank fees. If the homeowners forced to sell the home, the philanthropic Kresge Foundation will step in to provide financial support to help borrowers repay the second mortgage. The program also provides financial education classes for prospective borrowers prior to any transaction going forth. Mayor Duggan gave a political hat tip to the Obama Administration’s Detroit Federal Working Group for bringing the program to life. “I credit the Obama Administration with convening the parties, generating new ideas, and supporting the effort to bring this resource to Detroit,” he said.

Flint Water Crisis Impacts Local Home Sales

United Shore, parent company of United Wholesale Mortgage, has announced that it collected and shipped nearly 60,000 bottles of water and more than 10,000 paper/plastic goods to the Flint, Mich. community. The collection is the result of week-long relief drive in which the local community and more than 1,500 United Shore team members participated in. “We had a great turnout over the past week for our collection drive, bringing in close to 60,000 bottles of water and 10,000 paper and plastic goods,” said Brad Pettiford, communications manager at United Shore. “It’s obviously not the complete solution to Flint’s problem, but we’re ecstatic if our efforts make a positive impact in that community and inspire more people to help.” The overall collection tallied 30 pallets full of water bottle cases and two pallets of paper and plastic goods, equaling approximately 32 tons of goods. Federated Logistics Inc. of Wayne, Michigan donated the semi-truck used to ship the collection.

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

United Wholesale Mortgage Ships Water, Paper/Plastic Goods to Flint Community

MI 1

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The residents of Flint, Mich., have a new problem on top of their ongoing crisis regarding the presence of lead in the local drinking water supply: Several mortgage lenders are now refusing to originate mortgages in the city unless homebuyers can prove their would-be property purchases are not contaminated. According to a Wall Street Journal report, Wells Fargo and Bank of America have told local real estate agents that Flint-area homebuyers will have problems getting a mortgage if they are seeking out houses without potable water. Other lenders are now requiring borrowers to prove the home is not connected to the problematic municipal water supply or must pay for tests that affirm the property’s water meets Environmental Protection Agency (EPA) standards. The lenders’ newly stated requirements are in keeping with government standards for home loan guidelines on livability. “This isn’t a question of the lenders arbitrarily choosing not to do loans in Flint,” said David H. Stevens, president of the Mortgage Bankers Association (MBA). “It’s a question of whether lenders are allowed to originate those loans based on government requirements.” Fannie Mae issued a statement that hinted it might be willing to adjust its policies “as we learn more and as this situation evolves,” but it would not commit to any immediate action. Neither Freddie Mac nor the U.S. Department of Housing & Urban Development (HUD) offered any public statement that their lending standards would be adjusted to accommodate the situation in Flint. Nonetheless, a potential blacklisting by lenders of Flint-area homes impacted by the water crisis could have deleterious effects on the local housing market. “This thing is changing so quickly that, honestly, we’re just hanging on and trying to figure out how we are going to operate,” said Chris Theodoroff, president of the East Central Association of Realtors in Michigan.

Featured Industry Leader MI 2

Andrew Baker Immediate Past President of the Michigan Mortgage Lenders Association

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BY PHIL HALL Andrew Baker is a mortgage disclosure supervisor at Lake Michigan Credit Union and is the immediate past president of the Michigan Mortgage Lenders Association (MMLA). Michigan Mortgage Professional Magazine spoke with Baker about his work in the mortgage industry and with his state’s association. How and why did you get involved in your association? Can you share the track within your association that led to the leadership role? I have been with the organization for more than 10 years. I’ve always felt it is a great place of identifying information and networking with other colleagues in the industry. In 2011, I was at an event and spoke with two people who were on the local chapter board. I said that I was interested in stepping up and becoming more involved, and I was told that a position opened up on the state board. I ran for that and was voted in. From being a board member, I went on to being treasurer, then vice president, and then the president’s role.

Why do you feel members of the mortgage profession in your state should join MMLA? Last year, we did a ton of TRID training around the state. We got more information out on our everchanging industry. We also turn off the competition to work together. When we’re in these meetings, we discuss what is working and not working, the struggles and success. We do not feel we’re competing … we try to help each other out. We also try to do events with the real estate agent association in our state. That is a great networking opportunity and a good source for referrals. What role does your association play in the state legislative and regulatory environment, and what are the items on the current agenda that you would like to highlight? This is handled by MORBANPAC, our Political Action Committee for legislation in Michigan. We have a Legislative Committee that works with our Senate and House representatives on

different legislation at the state level. We have been involved in getting a flat fee for the recording of deeds and mortgages. The previous legislation required charging a fee per page, and different counties had different fees. It helps us if there is one flat fee. This is gaining momentum and is about to be passed. What do you see as your most significant accomplishments with the association? Last year, we hosted one of our largest sales symposiums and brought in national speakers like Jim McMahon and Barry Habib. We had 300 in attendance. As a trade association for the industry, what do you feel that adds to your association and towards the overall agenda for the mortgage profession nationwide? We are seeing so much more happen at the federal level. I believe that really need to be involved and hear what the

national association and what other state associations are doing. In your opinion, what can be done to bring more young people into mortgage careers? For the longest time, the mortgage industry got a bad rap, but we weathered the storm and we need to get young people to see there are viable and stable careers here. The average age for a mortgage professional is about 52 years of age, and a lot of companies are trying to find in-house talent to bring up through the ranks. How would you define your state’s housing market? The state has seen a large comeback. I think we got hit the hardest out of all 50 states. I’m in the western part of state and there has been an increase in housing values. We are also seeing things sell much quicker–in weeks, rather than in months. Phil Hall is managing editor of Michigan Mortgage Professional Magazine. He may be reached by email at philh@nmpmediacorp.com.

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N A T I O N A L

M O R T

Lykken on Leadership: Five Rules for Keeping Your Best Employees By David Lykken

F E B R U A R Y

54 NAR’s Homebuyer Demographics for 2015 By Karen Deis

2 0 1 6

V O

A SPECIAL FOCUS ON “THE GROWTH OF THE INDEPENDENT MORTGAGE COMPANY” Independence and Freedom By Andy W. Harris, CRMS ......................56 Do Dinosaurs Dream of Other Dinosaurs? By Eric Weinstein ..............57 Hiring Loan Originators? By Mike McNulty ............................................58 The Modern Mortgage Broker By Tom Pasckvale ................................60 When I Got My First Job in the Mortgage Industry By Ralph LoVuolo Sr. ................................................................................62

FEATURES Mortgage Liquidity Just Got a Little Looser By Tom Hutchens ............8

74 NMP Mortgage Professional of the Month: Tom Marinaro, President, Residential Home Funding By Phil Hall

The Elite Performer: Keeping Your Team Motivated By Andy W. Harris, CRMS ..........................................................................8 Successful Mortgage Lenders Share These Four Traits By Bubba Mills ..........................................................................................10 The Commercial Corner By Mike Boggiano ..........................................16 Virginia Set to Strengthen Settlement Agent Regulations This Year By Andrew Liput ........................................................................................18 NAMB Perspective ..................................................................................20 NMP Book Review: “Selling Your Business for More Than It’s Worth By Michelle Seiler-Tucker” By Charise James ....................34 What Do Donald Trump and Madonna Have in Common? By Casey Cunningham ..............................................................................36 Simplify Your Marketing..........................................................................38 Take the Lead: The Crystal Barrier Rears Its Ugly Head By Laura Burke ..........................................................................................42

77 Step Inside Ginnie Mae By Ted W. Tozer

80 Build TRID Loans Like They Will Stand Before a Judge By Wes Miller

V I S I T Company

Web Site

O U R

A Page

Agility Resources Group ...................................... www.agilityresourcesgroup.com ......................................60 American Advisors Group.................................... www.aag.com/wholesale ................................................35 American Financial Resources Inc. ...................... www.afrwholesale.com/nmp ..............................Back Cover Angel Oak Mortgage Solutions ............................ www.angeloakms.com ..................................................47 Assurance Financial............................................ www.lendtheway.com ....................................................37 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................88 Caliber Home Loans.............................................. www.caliberwholesale.com ......................................11 & 57 CallFurst.com ...................................................... www.callfurst.com ............................................................63 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................41 & 62 Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................19 Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................7 First Guaranty Mortgage Corp. ............................ www.fgmc.com ..............................Inside Front Cover & 43 HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................17 Hometown Lenders ............................................ www.hometownbranch.com ..................................51 & 81 LendingHome .................................................... www.lendinghome.com/nmp ............................................1 Lykken On Lending ............................................ www.lykkenonlending.com ............................................79 MBA-NJ/NJAMB .................................................. www.mbanj.com ..........................................................53 MBS Highway .................................................... www.mbshighway.com/MNN ..........................................25 Moneyhouse U.S. .............................................. www.moneyhouseus.com ..............................................59

T G A G E

O L U M E

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

N U M B E R

Industry Updates: February 2016 By Gavin T. Ales ..............................46 Fannie Mae to Begin Requiring Trended Credit Data in June, With Rollout of DU 10.0 By Terry W. Clemans........................................50 The Long & Short: The Business of Short Sales By Pam Marron ........52 Operation VA SITREP “Your VA Situation Report” By Richard M. Bettencourt Jr., CRMS, CMHS..........................................64 #Relationships: Planning, Budgeting, Building Consistency Are Not Optional By Amy Hausman ........................................................66 More at Bats With Sales Acceleration By Brent Emler ........................68 Tales From the Closing Table By Andrew Liput ....................................70 MBA’s Mortgage Action Alliance: A Message From MAA Chairman Fowler Williams ............................................................71 OrigiNation: By Originators, For Originators By Andy W. Harris ..........72 Recruiting, Training and Mentoring Corner By Dave Hershman ..........73 A Message From E. Robert Levy Esq. ..................................................76 Diversity is Good Business By Ginger Bell ............................................78 The Mortgage Originators Conference By Linda McCoy, CRMS ........82

COLUMNS New to Market..........................................................................................12 News Flash: February 2016 ....................................................................14 Heard on the Street ................................................................................40 Outstanding Places to Work ..................................................................84 NMP Calendar of Events ........................................................................85 NMP Resource Registry ..........................................................................86

D V E R T I S E R S Company

Web Site

Page

Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................44 & 45 MortgagePlannerMarketing.com.......................... www.mortgageplannermarketing.com ............................61 NAHREP ............................................................ www.nahrep.org ............................................................48 NAMB+ ............................................................ www.nambplus.com ......................................................23 NAMB East ........................................................ www.nambeast.com ................................................3 & 31 NAMB PAC ........................................................ www.namb.org ......................................................32 & 33 NAPMW ............................................................ www.napmw.org ..............................................58, 64 & 79 NAWRB ............................................................ www.nawrb.com ............................................................83 New York Community Bancorp, Inc. .................... www.nycbmortgage.com ................................................13 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................39, 67 & Inside Back Cover REMN Wholesale ................................................ www.remnwholesale.com ....................................MI1 & 15 Residential Home Funding Corp. ........................ www.rhfbranch.com ........................................................9 Secure Insight.................................................... www.secureinsight.com ..................................................49 Silver Hill Funding ............................................ www.silverhillfunding.com ............................................65 TagQuest .......................................................... www.tagquest.com ........................................................51 The Bond Exchange............................................ www.thebondexchange.com ..........................................73 The National Real Estate Post.............................. www.thenationalrealestatepost.com ..............................69 United Wholesale Mortgage ................................ www.uwm.com ..............................................................5

FEBRUARY 2016 Volume 8 • Number 2 FROM THE

In praise of the independents

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

Joel M. Berman Publisher - CEO (516) 409-5555, ext. 310 joel@nmpmediacorp.com

Joey Arendt Art Director (516) 409-5555, ext. 307 joeya@nmpmediacorp.com

Beverly Bolnick VP-Sales & Marketing (516) 409-5555, ext. 316 beverlyb@nmpmediacorp.com

Scott Koondel VP of Operations (516) 409-5555, ext. 324 scottk@nmpmediacorp.com

Phil Hall Managing Editor (516) 409-5555, ext. 312 philh@nmpmediacorp.com

Richard Zyta Social Media Ambassador (516) 409-5555 richardz@nmpmediacorp.com

Francine Miller Advertising Coordinator (516) 409-5555, ext. 301 francinem@nmpmediacorp.com

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

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

SUBSCRIPTIONS To receive subscription information, please call (516) 409-5555, ext. 301; e-mail orders@nmpmediacorp.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the attention of “Circulation” via fax to (516) 409-4600.

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publisher’s desk

Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of the authors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or members of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or other state mortgage trade associations. Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement of the product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA, and other state mortgage trade associations. National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance aspects of advertisers, products or services and/or the editorial content contained in NMP Media Corp. publications. National Mortgage Professional Magazine and NMP Media Corp. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.

This month, our special focus is on “The Growth of the Independent Mortgage Company” and you’ll find a celebration of these great examples of American free enterprise throughout this issue. These are the companies and individuals who are leading the housing recovery. They are attracting a new breed of leader who is not afraid to do things differently, whether the decision be driven by new compliance requirements or simply the drive to be stronger competitors. They are the birthplace of innovation and the spirit of an industry rising from the darkness of the nation’s housing crisis. The mortgage industry represents one of the very best opportunities for entrepreneurs who want to make a name for themselves and succeed on their own terms. Working for an independent can be a great way to participate in this industry. And yet, many parts of our business still suffer from a lack of new entrants. What will it take to lead today’s young professionals back into our industry? What can we show them to illustrate the opportunity we have here? The companies featured in this issue are shining examples of what it will take to get young people excited about a career in financial services. Some of our industry’s foremost leaders are focused on the topic, as evidenced by some of the conversations we witnessed at the recent NAMB Wholesale Summit in San Antonio. If one thing can be taken away from the NAMB’s most recent meeting, it’s that the mortgage broker is coming back strong. The easiest route into the mortgage business for many is as a bank loan officer, but more of these professionals are seeing the value in moving to an independent or launching their own brokerage and are moving in that direction. We see that as a very positive development, not because we wish to throw shade on the banks, those vital institutions that form the foundation upon which so much of the financial services industry rests, but because innovation so often the product of the smaller, more nimble firm. There is certainly great opportunity here. As the nation’s largest banks continue to step back from mortgage lending in the face of rising compliance costs, the independents are stepping up. These companies are creating compliant yet rewarding partnerships with their correspondents and mortgage brokers and filling the gaps in the mortgage marketplace. In a not-too-distant future, these firms may be seen clearly as the heroes they are for ensuring liquidity in a recovering market that so desperately requires it. Sure, there is still a lot of compliance overhead in our business and mistakes here can be more costly than in many other businesses, but as you’ll see in this issue there are experienced compliance experts out there who are willing to share what they know with the next generation of leaders. And one final note … hopefully you have your plans made to attend the inaugural NAMB East, set for WednesdayFriday, March 9-11 at the Westin Hilton Head Resort on Hilton Head Island, S.C. NAMB—The Association of Mortgage Professionals, has been working around the clock to deliver a new twist on a mortgage professionals conference, one that mixes business with the relaxation of all that can be found in a resort like Hilton Head, S.C. Log on to NAMBEast.com or see pages 26-30 of this issue for all of the details on this exciting event. See you in Hilton Head! Sincerely, Joel M. Berman, Publisher-CEO l NMP Media Corp. l joel@nmpmediacorp.com

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

EDITORIAL CONTRIBUTORS Featured Editorial Contributors Richard M. Bettencourt Jr., CRMS, CMHS

Pam Marron

Laura Burke

E. Robert Levy Esq.

Tom Pasckvale

Linda McCoy, CRMS

Casey Cunningham

Andrew Liput

Eric Weinstein

Ted W. Tozer

Karen Deis

Ralph LoVuolo Sr.

Fowler Williams

Brent Emler

Mike McNulty

Tom Hutchens

Wes Miller

Charise James

Bubba Mills

Terry W. Clemans

Phil Hall

Andy W. Harris, CRMS

Editorial Contributors Gavin T. Ales

Dave Hershman

Ginger Bell

David Lykken

Michael Boggiano

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IS YOUR UNDERWRITER CALLING YOU BACK, BEFORE THEY CALL IT A DAY. GET YOUNITED WITH DIRECT ACCESS TO YOUR OWN TEAM OF UNDERWRITERS. Let’s talk. At UWM, we know exactly what allows us to maintain the fastest and most consistent turn times in the industry: it’s the art of communication. Which is why we give you direct access to the underwriter who works on your loan, why we assign the same team of underwriters to all of your loans, and why they’re committed to returning your calls and emails within three hours every time. It’s like having your own hotline to a team of mortgage superheroes — or their mildmannered alter egos — who blend the art of communication with the science of underwriting. And it’s another reason why more brokers choose UWM than any other lender. Get YOUNITED with UWM today.

YOU + UWM = YOUNITED | 800.981.8898 | UWM.COM This information is provided to mortgage and real estate professionals only and is not intended nor is it authorized for consumer distribution. NMLS #3038.

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YOUNITED

NAMB The Association of Mortgage Professionals

National Association of Professional Mortgage Women

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

2015-2016 NAPMW National Board of Directors

NAMB 2015-2016 Board of Directors OFFICERS Rocke Andrews, CMC, CRMS—President Lending Arizona LLC 3531 North Pantano Road l Tucson, AZ 85750 Phone: (520) 886-7283 l E-mail: randrews@lendingarizona.net Fred Kreger, CMC—President-Elect American Family Funding 28368 Constellation Road, Suite 398 l Santa Clarita, CA 91350 Phone: (661) 505-4311 l E-mail: fred.kreger@affloans.com John Stevens, CRMS—Vice President Mountain West Financial 380 North 600 East l Pleasant Grove, UT 84062 Phone: (801) 427-7111 l E-mail: johngstevens@gmail.com Rick Bettencourt, CRMS—Secretary Mortgage Network 300 Rosewood Drive l Danvers, MA 01923 Phone: (978) 777-7500 l E-mail: rbettencourt@mortgagenetwork.com Andy W. Harris, CRMS—Treasurer Vantage Mortgage Group Inc. 15962 SW Boones Ferry Road, Ste 100 l Lake Oswego, OR 97035 Phone: (503) 496-0431, ext. 302 E-mail: aharris@vantagemortgagegroup.com John Councilman, CMC, CRMS—Immediate Past President AMC Mortgage Corporation 10136 Avalon Lake Circle l Fort Myers, FL 33913 Phone: (239) 267-2400 l E-mail: jlc@amcmortgage.com

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

DIRECTORS Kimber White l RE Financial Services Inc. 1620 West Oakland Park Boulevard #201 l Oakland Park, FL 33311 Phone: (954) 306-3553 l E-mail: kimber.lmt@gmail.com Olga Kucerak, CRMS l Crown Lending 328 West Mistletoe l San Antonio, TX 78212 Phone: (210) 828-3384 l E-mail: olga@crownlending.com David Luna, CRMS l Mortgage Educators and Compliance 947 South 500 E, Suite 105 l American Fork, UT 84003 Phone: (877) 403-1428 l E-mail: david@mortgageeducators.com Linda McCoy, CRMS l Mortgage Team 1 Inc. 6336 Piccadilly Square Drive l Mobile, AL 36609 Phone: (251) 650-0805 l E-mail: linda@mortgageteam1.com Nathan Pierce, CRMS l Advanced Funding Home Mortgage Loans 6589 South 1300 East, Suite 200 l Salt Lake City, UT 84121 Phone: (801) 272-0600 l E-mail: npierce@advfund.com Valerie Saunders l RE Financial Services 13033 West Lindburgh Avenue l Tampa, FL 33626 Phone: (866) 992-0785 l E-mail: valsaun@gmail.com Robert Sweeney, CRMS 600 East Carmel Drive l Carmel, IN 46032 Phone: (317) 625-3287 l E-mail: bob.sweeney46@yahoo.com Michele Velez, CMC l WJ Bradley Mortgage Capital LLC 1300 South El Camino Real, Suite 505 l San Mateo, CA 94402 Phone: (650) 409-2850 l E-mail: michelle.velez@wjbradley.com

1851 South Lakeline Boulevard, Suite 104, Box 303 Phone: (800) 827-3034 • E-mail: napmw@napmw.org Web site: www.napmw.org

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

Treasurer Judy Alderson (918) 250-9080, ext. 300 nattreasurer@napmw.org

President-Elect Nikki Bell (678) 442-3966 preselect@napmw.org

Parliamentarian Frances Reinhardt (678) 331-1384 freinhardt@firstservicetitle.net

Vice President Cathy Kantrowitz (845) 463-3011 nvp1@napmw.org

Vice President Laurel Knight (425) 412-6787 nvp2@napmw.org

Secretary Windee Falla (281) 556-9182 natsecretary@napmw.org

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

2015-2016 Board of Directors William Bower President (800) 288-4757 WBower@continfo.com

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

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

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

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

Delia Zuniga Director Delia@AdvantagePlusCredit.com

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

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

Matthew Carpenter Director MCarpenter@Sarma.com

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

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

Scott Ledbetter Director (214) 783-3315

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www.DocMagic.com

1.800.649.1362

Mortgage Liquidity Just Got a Little Looser By Tom Hutchens The mortgage origination industry will be facing some concrete challenges this year. Traditional agency loan volume is predicted to suffer as home prices increase, regulatory costs increase and the possibility of further Federal Reserve monetary tightening looms. In order to offset these expectations and remain competitive in this unpredictable environment, mortgage originators should think outside the box—the credit box, that is—and diversify their product offering in order to continue building steady business. For example, non-agency mortgage lenders have started offering new non-prime products that require as little as 10 percent down. This move to increase loan-to-value (LTV) ratios to 90 percent allows borrowers to obtain a higher quality loan without depleting their entire savings, and allows lenders to continue to grow an underserved sector of the market. Skeptics are bound to be thinking, “Here we go again,” but these products are vastly different from those of the mid-2000s that sparked the financial crisis. The differences between these products is striking and begs repeating:

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

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In 2006, the average credit score of subprime loans was 580, income was often undocumented, there was no down payment requirement and regulatory oversight was very limited. Flash forward 10 years to today and the field looks much different. Borrowers that qualify for today’s non-prime loans have an average credit score of about 680 are able to make a 10-to20 percent down payment, must be able to show fully-documented income and comply with tighter regulations, like ability to repay (ATR) requirements. These loans are very high quality, which has been proven by their amazing performance over the last two years. One way in which borrowers can significantly reduce the interest rate of a non-prime loan compared to a single loan with the same LTV is by getting a combo loan. With a combo loan, the first loan covers the majority of the mortgage—say 75 percent—at a lower interest rate, and a second loan is issued at a higher rate and is used to supplement the downpayment. The weighted average rate of the two loans ends up being very reasonable compared to a single loan and the borrower avoids any mortgage insurance payments. The year 2016 is bound to be a pivot year for the mortgage industry. As mortgage lenders step up the breadth of their products and include 10 percent down, non-agency/non-prime loans, as well as other unique mortgage products, the industry is certain to see more borrowers enter the market. Tom Hutchens is senior vice president of sales and marketing at Angel Oak Mortgage Solutions, an Atlanta-based wholesale lender currently licensed in 24 states. Tom has been in the real estate lending business for nearly 20 years. He may be reached by phone at (855) 539-4910 or e-mail info@angeloakms.com.

THE

elite performer

Keeping Your Team Motivated By Andy W. Harris, CRMS s a mortgage loan originator or business owner, I would assume you have a team of assistants, processors or employees you deal with daily. When we deal directly with clients, I believe we are able to remain consistently motivated and carry a sense of urgency with every transaction, providing we are on the front lines with consumers and business partners. So … how do you best motivate and ensure this sense of urgency and motivation and ensure that it is mirrored with support staff on every transaction? One thing is for certain, a paycheck alone will not cut it. Creating a work environment that not only establishes retention and loyalty with staff, but also has them looking forward to coming to work each day, is vital for success. Here are a few ideas:

Keep it fresh To eliminate boredom, keep things interesting, fun and embrace change. Try to avoid repetition and leave that to software and technology, and acknowledge the uniqueness with each file and borrower. Gain respect Be a leader that others want to follow. Have a clear vision and goal and ensure that your team members are on the same page and carry the same passion to see your vision through. Lead by example to set a good example. Be available and encouraging We all get very busy, but we have to prioritize our time with support staff and employees. By neglecting this or not being available, it can create issues and lose the connections needed to develop a strong team. Set goals together Get interested in their lives. Set goals as a team, but also help them set goals personally by understanding what motivates them. Reward them for hitting goals and encourage them along the way. Smile, laugh and make others laugh I believe one of the best things in a workplace is laughter … even when things are stressful. Put things into perspective and try not to take so seriously and encourage staff to do the same. Provide a sense of ownership Make others feel part of the team and feel a sense of accomplishment when deadlines and team goals are met. This list could continue, but the main objective is to intentionally and consistently lead your staff. Do so proactively versus reactively to eliminate issues instead of trying to correct them. Ask yourself each day, what if I worked for me? Would I be excited to come into work each day or would it just be another day at the office? Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and past president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

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Successful Mortgage Lenders Share These Four Traits By Bubba Mills Be honest … when times have gotten a little tough, you’ve asked yourself the question: Do I have what it takes to make it through this? We all question ourselves—especially in stormier times. But the good news is you can always answer yes to the question. Why? Because the traits that make top lenders successful can be learned. During my years of coaching, I’ve come to realize two important things: One, great lenders have four key traits that make them prosperous, and two, you can learn these traits. And when you resolve to learn them—and practice them daily—you cannot help but succeed. So let’s get on with it. Highly successful mortgage professionals are:

1. Prospectors Prospects are oxygen for top lenders— they’re a must to survive. Prospects fall into two basic groups: Those you have met and those you have yet to meet.

Great lenders make time for both. Set aside time daily for your hour of power—either on the phone or in a setting where people are gathered. And don’t forget to follow up. The best lenders are meticulous with their follow up.

2. Good researchers Successful lenders know there is a lot to know in the mortgage industry these days. They’re constantly researching the most pertinent information their prospects and clients need. And the true delineator between average and super lenders is that that the best lenders know how to use information, not as a salesperson, but as an educator and solution provider. Think of the guy walking into Best Buy to get a 55-inch screen TV. He knows he wants it so he doesn’t need to be sold, but he needs to know which 55-inch screen TV is right for him. When you remove your sales mentality and become a helper, that’s when miracles happen.

3. Lovers of learning Successful mortgage professionals are

always learning about the tools and technology in today’s mortgage arena. If you’re not learning how to use social media, the Internet, software and all the rest that comes down the pipe almost weekly, you’ll not only fail, you’ll fail miserably. Those lenders who refused to change and learn became road kill. Pledge to be an insatiable learner and continue to educate yourself. Attend conferences and continuing education classes. Poke your head outside of the industry and see what you can learn by looking at other professions and what you might borrow. And of course, I’d be remiss in not suggesting you hire a coach who can add fresh new perspectives. Sports stars have coaches for a reason—they can lead you across the finish line with a smile.

4. Masters of time management Without fail, every great lender I’ve met understood—with crystal clarity—the value of time. They prioritize ruthlessly, always keeping the items on their to-do lists that yield the best return on investment. They also have what I like to call

the ideal weekly schedule and daily activity records. By the way, I have templates of each of these and will send them to you free-of-charge. Just e-mail me at Article@CorcoranCoaching.com. I’ll end by saying that I can share helpful attributes all day long, but what it really comes down to is your willingness to explore how you’re going to apply them to your daily life. Thoughts require action. Take the time to plan what kind of lender you want to be— average or amazing. If you said amazing, let me hear from you. How many of these traits do you have? How many do you lack? Do you believe you can begin to incorporate them into your life and work? Will you commit today to add them to your life and work? Please send any comments or questions you have to Article@CorcoranCoaching.com or visit Facebook.com/CorcoranCoaching. Bubba Mills is CEO of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 957-8353 or visit CorcoranCoaching.com.

The right products.

The right people. 11

Wholesale Lending

*Rankings Source: Inside Mortgage Finance. Caliber Home Loans, Inc., 3701 Regent Boulevard, Irving, TX 75063 (NMLS #15622). 1-800-401-6587. Copyright ÂŠ2015. All Rights Reserved. Equal Housing Lender. For real estate and lending proffe essionals onlyy and not for distribution to consumers. This communication may contain information that is privileged, conďŹ dential, legally privileged, and d/ /or exempt from disclosure under applicable law. Distribution to the general public is prohibited. Caliber Home Loans is an Equal Opportunity Employer.

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The right backing.

UWM Launches SuperHelp Desk Pronto Team

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United Wholesale Mortgage (UWM) has announced the creation of its Pronto team, a solutions-focused superhelp desk aimed at providing the fastest and most streamlined client service in the industry. “Delivering exceptional client service is the backbone of our company,” said Mat Ishbia, president and CEO of UWM. “We are confident that our Pronto Team will set the gold standard for service industry wide.” Pronto is a client service super group that is staffed with experts in every mortgage discipline to support UWM’s front line teams of account executives and underwriters. Comprised of experts in underwriting, closing, secondary marketing, AUS and closing, Pronto is on-call for brokers when additional help is needed in any facet of the loan process. UWM has launched a multimedia “We Have Pronto” campaign to illustrate Pronto and the major advantages it offers its nationwide network of independent mortgage brokers. In a recently released video, UWM compares the make-up of its Pronto team to a Rock n’ Roll Supergroup “where they’ve taken the best musicians from the greatest bands and put them together on one stage.” Pronto gives brokers access to constant support and ensures that clients’ tough questions get answered, tricky circumstances get resolved, and high expectations are met in a timely manner.

American Advisors Group Launches New Reverse Mortgage TV Spot

fessor of finance at Maryville University, and Barbara Howard, MBA, finance; MA, gerontology and adjunct professor at University of Bridgeport. The two professors emphasize the importance of a reverse mortgage loan as a flexible financial solution during a time when traditional sources of retirement income may not provide enough financial stability for today’s retirees. The commercial debuts as academics garner mainstream media coverage about a national crisis faced by older Americans—about two-thirds of seniors are not financially prepared for retirement. Financial experts are encouraging homeowners age 62 and older to consider converting their home equity as a means to help fund ongoing expenses, including medical costs and long-term care. The spot also highlights a reverse mortgage standby line of credit available for homeowners to use when they need it most. “The new AAG commercial sheds light on how reverse mortgage loans are becoming widely accepted by academics and experts as a versatile financial solution to help seniors achieve retirement security,” AAG Chief Creative Officer Teague McGrath said. “At AAG our mission is to help educate consumers on the advantages of this powerful tool, and the experts’ confidence in the product provides valuable thirdparty credibility.” This is the first new commercial to be produced following the death of AAG national spokesperson Fred Thompson in November of 2015. The ad serves as a starting point for the company’s larger, multi-faceted marketing approach that will feature a complete refresh of AAG’s creative materials later in the year.

American Advisors Group Ellie Mae Launches Ellie (AAG) has an- Mae Pro Consulting nounced the Partner Program launch of a new, 120-second television Ellie Mae has spot, depicting the reverse mortgage as announced a viable retirement planning tool. The launch of the commercial is airing now and sched- Ellie Mae Pro consulting partner prouled to run over the next quarter of gram, designed to accelerate the adop2016. The ad will run across cable and national networks, including ABC, NBC and CBS. The spot features noted academics David W. Johnson, Ph.D., associate pro-

tion of Ellie Mae’s Encompass all-inone mortgage management solution. The Ellie Mae Pro Consulting Partners program offers consulting firms the opportunity to provide a broad range of high-quality services by partnering with Ellie Mae and their customers on Encompass implementations. Through Ellie Mae Pro, consulting partners will be offered training and certification opportunities, along with deeper access to Ellie Mae resources, all designed to ensure customers receive exceptional consulting services. “As we continue to build and expand our business, the Ellie Mae Pro consulting partners program will help us scale and accelerate our delivery of software and solutions for the residential mortgage industry,” said Jonathan Corr, Ellie Mae president and CEO. “This unique program will give consulting partners the tools, training, marketing opportunities and resources to build and grow their businesses. Additionally, we will be able to offer our customers more expertise will then match them with the firm that best suits their needs.” “In our effort to build a best-in-class organization, Ellie Mae Pro is a critical component of our professional services strategy,” said Shea Haley, Ellie Mae’s vice president of professional services. “This is truly the best of both worlds, enabling us to leverage the skills and expertise of our partners while strengthening our own evolving organization.” Ellie Mae Pro offers three membership levels: Ellie Mae Pro Select, Ellie Mae Pro Elite and Ellie Mae Pro Premier.

Morf Media Debuts Millennial Training Playbook Morf Media Inc. has announced that mortgage industry training veteran Ginger Bell is joining Millennial leaders to present powerful new financial education programs for 2016.

Designed to make a lasting impact on young professionals, business and the mortgage industry, Bell will host a panel of Millennial professionals to present “Mentorships for Millennials and The Financial Literacy Initiative” at Pepperdine University. Bell will also debut the newest training technology from Morf Media called Morf Playbook on smartphones with career training courses such as America’s Mortgage Institute Mortgage Master online. Bell’s panel of Millennials will discuss what young adults know about finance, want to know and need to know about buying a home. Derek Stoutland, director of The Financial Literacy Initiative at Pepperdine University will share vital insights about his program designed to educate Millennials on the foundational concepts of personal finance. A Millennial himself, Stoutland is completing his MBA at Pepperdine’s Graziadio School of Business and Management while also working as a Budget Analyst for the institution’s Office of Financial Planning. “Mentoring Millennials by Millennials on financial planning and mortgage industry programs is powerful,” said Stoutland. “We seek to inform, engage and build behaviors that meet important goals for financial literacy among this generation.” With a focus on presenting opportunities for Millennials in the mortgage industry, JD Cutri, the founder and president of the Young Mortgage Professionals Association will share insights on what Millennials are looking for and will share the mission and plans for the Young Mortgage Professionals Association. At the session, Bell will provide a sneak peek of an online training system she helped design, Morf Playbook. It’s designed for training on the go and is now available on mobile devices and PCs. Morf Playbook offers a complete training system with authoring, reporting and more, made easy, fast and fun with a game-like experience. The training is available on mobile devices and

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National Sales Director Sheryl Heffernan Senior Vice President Sheryl.Heffernan@mynycb.com (310) 678-1613

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Central Region Debbie Schultz Vice President Debra.Schultz@mynycb.com (832) 317-3931

Eastern Region Jim Ford Vice President James.Ford@mynycb.com (770) 590-7348

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EWSFLASH l FEBRUARY 2016 l NMP NEWSFLASH l FEBRUARY 2016 l NMP NEW United Wholesale Mortgage Ships Water, Paper/Plastic Goods to Flint Community

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U n i t e d Shore, parent company of United Wholesale Mortgage, has announced that it collected and shipped nearly 60,000 bottles of water and more than 10,000 paper/plastic goods to the Flint, Mich. community. The collection is the result of week-long relief drive in which the local community and more than 1,500 United Shore team members participated in. “We had a great turnout over the past week for our collection drive, bringing in close to 60,000 bottles of water and 10,000 paper and plastic goods,” said Brad Pettiford, communications manager at United Shore. “It’s obviously not the complete solution to Flint’s problem, but we’re ecstatic if our efforts make a positive impact in that community and inspire more people to help.” The overall collection tallied 30 pallets full of water bottle cases and two pallets of paper and plastic goods, equaling approximately 32 tons of goods. Federated Logistics Inc. of Wayne, Michigan donated the semitruck used to ship the collection.

DocMagic’s SmartCLOSE Awarded MISMO Software Certification for TRID

MISMO has announced that DocMagic, a provider of document preparation, compliance, eSign and eDelivery solutions, has received MISMO certification for their SmartCLOSE software product. Specifically, SmartCLOSE has been awarded what is known as a Standard Level Certification for TILA/RESPA Integrated Disclosures (TRID). “We congratulate DocMagic for obtaining a certificate for SmartCLOSE through MISMO’s software compliance certification program,” said MISMO

President Mike Fratantoni. “Industry participants continue to work through the many challenges created by the Know Before You Owe rule and so we are pleased to be able to certify SmartCLOSE for appropriate use of the MISMO standards for TRID.” MISMO Software Certification provides assurance that a technology provider’s products demonstrate compliance with MISMO standards and best practices. The Standard Level Certification provides a foundational certification of appropriate use of MISMO standards and best practices within a specified business domain through self-assessment, with validation of aspects of the self-assessment by MISMO staff and receipt of integration partner references. Only products certified by MISMO may utilize the term “certified MISMO compliant”—a symbol of industry excellence. SmartCLOSE brings lenders, settlement service providers, and other relevant entities together inside a secure environment to share, edit, validate, audit, track and collaborate on documents, data and fees. Everything is accessible within SmartCLOSE, including the eSigning and eDelivery of documents. SmartCLOSE received Standard Level certification for MISMO Version 3.3 within the TILA/RESPA Integrated Disclosures (TRID) business domain. “With the Uniform Mortgage Data Program (UMDP) quality initiatives mandated by the GSE’s and the CFPB’s move toward supporting more automated audits, we felt it was crucial to get certified since DocMagic is integrated to more lender LOS systems than any other vendor to perform compliance checks and audits” said Tim Anderson, director of eServices for DocMagic. “In fact, we see MISMO software certification as a competitive differentiator since we provide representations and warranties regarding compliance and need to be sure the data is correct since our clients rely on our compliance services to ensure regulatory and investor compliance.”

Commercial Mortgage Segment Ended 2015 With a Bang

Last year ended with a bang for the commercial mortgage segment, according to new data released by the Mortgage Bankers Association (MBA). The MBA’s Quarterly Survey of Commercial/Multifamily reported commercial and multifamily mortgage originations soared 35 percent from the third and the fourth quarters of 2015 and increased by a solid 19 percent from the fourth quarter of 2014, according to the Mortgage Bankers Association (MBA). “In fact, the fourth quarter was the fourth highest quarter for borrowing and lending on record,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “In fact, the fourth quarter was the fourth highest quarter for borrowing and lending on record. Banks, life insurance companies, and Fannie Mae and Freddie Mac saw their highest originations volumes on record. Of the major investor groups, only the CMBS market didn’t break a record for originations. In terms of overall borrowing and lending volumes, 2015 as a whole was likely second only to 2007.” Although the trade group will not be releasing its Annual Origination Summation report for 2015 until next month, its preliminary estimate points to a 24 percent year-over-year increase. Broken down by sectors, this includes a 128 percent increase in the dollar volume of loans for industrial properties, a 60 percent spike for hotel properties, a 15 percent rise for both office properties and multifamily properties, respectively and a 13 percent increase in retail property loans. The only sector that showed negative movement was health

care property loans, with a 57 percent decrease. The MBA also released its 2015 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, which determined that 11 percent of outstanding commercial and multifamily mortgages held by non-bank lenders and investors—or, or $183.3 billion of $1.7 trillion—will mature this year, a 51 percent increase from the $121 billion that matured last year. The MBA also forecasted that maturities will grow to $208 billion in 2017. “Last year’s survey tracked $225 billion of commercial and multifamily mortgages that were set to mature in 2016,” said Woodwell. “This year’s survey found that 2016 maturities had dropped by 18 percent, to $183 billion as loans prepaid and paid-down. That’s roughly the same amount that matured in the year 2010.”

Flint Leads Nation in Vacant Properties

More than 1.3 million residential properties, or 1.6 percent of all residences, were vacant at the beginning of February, according to new data released by RealtyTrac. This level represents a 9.3 percent decline from the last residential property vacancy analysis in the third quarter of 2015. Among the nation’s 147 top metropolitan areas, Michigan had the two with the highest share of vacant properties: Flint (7.5 percent) and Detroit (5.3 percent). Other markets with higher than normal vacant properties were Youngstown, Ohio (4.4 percent), Beaumont-Port Arthur, Texas (3.8 percent), Atlantic City, N.J. (3.7 percent), Indianapolis (3 percent), Tampa (2.9 percent), Miami (2.8 percent), Cleveland (2.8 percent), and St. Louis (2.6 percent). On the flip side, the metro areas with the lowest share of vacant properties were San Jose (0.2 percent), Fort

Collins, Colo. (0.2 percent), Manchester, N.H. (0.3 percent), Provo, Utah (0.3 percent), Lancaster, Pa. (0.3 percent), San Francisco (0.3 percent), (0.3 percent), Los Angeles (0.4 percent), Boston (0.5 percent), Denver (0.5 percent), and Washington, D.C. (0.5 percent). The report also found that investment properties accounted for 76.7 percent (1,044,599) of all vacant properties nationwide. Among major metro areas, those where investment properties accounted for the highest share of vacant homes were Myrtle Beach, S.C. (95.0 percent), Barnstable, Mass. (93.5 percent), Salisbury, Md. (91.9 percent), Lexington, Ky. (91.8 percent), and Asheville, N.C. (90.6 percent). Properties in the foreclosure process accounted for 1.5 percent (19,793) of all vacant properties nationwide, a four percent decline from last year. Massachusetts led the nation as both the state with the biggest year-overyear increase in zombie foreclosures (up 167 percent) and as the home to the metro market with the biggest year-over-year increase in zombie foreclosures (Worcester, up 163 percent). “With several notable exceptions, the challenge facing most U.S. real estate markets is not too many vacant homes but too few,” said Daren Blomquist, vice president at RealtyTrac. “The razor-thin vacancy rates in many markets are placing upward pressure on home prices and rents. While that may be good news for sellers and landlords, it is bad news for buyers and renters and could be bad news for all if prices and rents are inflated above tolerable affordability thresholds.”

cessful acquisition, financing, asset management and development deals. They will also learn the intricacies of private equity real estate, private debt/finance, publicly traded real estate (REITs), securitized debt and realestate development. The program includes five real estate classes and one self-paced elective course (up to two electives can be taken). The electives give students the opportunity to learn continuing education credits toward MBA’s Certified Mortgage Bankers designation. As part of the overall certification program, the Mortgage Bankers Association will provide Pepperdine continued on page 16

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

David H. Stevens, CMB, president and CEO of the Mortgage Bankers Association (MBA), has announced that the trade group is collaborating with Pepperdine University Graziadio School of Business and Management to offer a six-month Executive Certificate in Commercial Real Estate, beginning in March 2016. The program aims to accelerate higher-level career opportunities for commercial real estate professionals. Developed by Pepperdine University faculty member Dr. Abraham Park, Director of Fred Sands Institute of Real Estate and Associate Professor of Finance, and John Heffernan, PE, Director of the Executive Real Estate Certificate Program, the curriculum is based on Mortgage Banker Associationestablished training combined with Dr. Park’s extensive experience in the commercial real estate equity and REIT fund investment. “Our industry needs to continue to recruit, develop, and retain top talent.

Certificate in Commercial Real Estate is an opportunity for real estate professionals to acquire practical, cuttingedge, graduate-level education.” The program incorporates materials and programming from the Mortgage Bankers Association Education’s Commercial/Multifamily Courses, making it a first-of-its-kind industry program to combine graduate school certificate education with industry-recognized training curriculum. The certification is designed for midto senior-level professionals in the commercial real estate industry who seek career advancement, continuing education credits and professional designations. Students learn critical analysis and evaluation skills for transacting suc-

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MBA Partners With Pepperdine University on Commercial Real Estate Course

MBA is proud to join with Pepperdine Graziadio to forge this partnership that offers great value and that will serve as a foundation for MBA to expand its educational efforts,” said Stevens. “Pepperdine Graziadio students in the program will have access to certain Mortgage Bankers Association education and training programs and MBA members will build connections to talented future industry leaders.” “Real estate is a vast and highly segmented industry. Real estate professionals form one area may find their previous education and training either too narrowly focused or insufficient for transitioning into higher-level career opportunities,” said Dr. Park. “The Pepperdine Graziadio Executive

co ia rn l er

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Five Reasons to Diversify With Small-Balance Commercial Lending

Why residential brokers are finding success with small-balance commercial loans By Michael Boggiano It’s been said that if you want a different result, you’ve got to do something differently. Apply that theory for a moment to business as a residential mortgage broker. Loan applications cool off, and brokers shift to alternative products to boost revenue streams. Before long, everyone seems to be offering the same products again, and no one has any competitive advantage. However, a growing number of savvy residential mortgage professionals are diversifying their business with small-balance commercial loans. This type of loan has gained considerable attention as a smart choice for residential brokers looking to increase income and serve more borrowers. The fact is, there is significant potential for anyone with the willingness to become educated and the commit to success. Brokers in growing numbers are discovering small-balance commercial as a viable opportunity for the following five reasons:

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

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1. The residential mortgage market is changing. Questions revolving around the strength of the residential housing market in 2016 have prompted brokers who previously may not have considered trying commercial loans to take another look. Instead of passing on the commercial opportunities that cross their desk, brokers have delved in to small-balance transactions with the help of lender training and support, as well as borrower-focused programs. 2. Product availability and program efficiency. Brokers are taking advantage of products in the marketplace that make small-balance commercial transactions easier than ever. Streamlined programs from innovative lenders allow brokers to capitalize on efficiencies and serve more borrowers by offering small commercial loans. Brokers can even find residential-style programs and features that challenge the contention that commercial loans are too complicated and non-standardized to be worth the effort. Non-traditional programs from nationwide lenders present a welcome alternative to conventional bank financing; this is especially true for selfemployed borrowers. 3. Borrower demand. Residential mortgage professionals are finding new business opportunities within the established relationships they have with their existing clients–many of whom fit the profile of the ideal small-balance commercial borrower. Entrepreneurs, professionals in private practice and small-business owners are often in need of financing for small-commercial property investments and/or refinance loans, yet most traditional lending institutions have a low appetite for funding these deals. 4. Less competition in commercial than residential. Competition is fierce in the contracted residential marketplace. Small-balance commercial loans give mortgage brokers a competitive advantage over their peers who aren’t offering commercial products. The commercial space is far less crowded than residential, and borrowers are less interest-rate driven. 5. Profitability. Mortgage brokers are leveraging small-balance commercial loans to increase their income with a completely new and profitable revenue stream – while enjoying higher commissions per transaction compared to residential deals. With a variety of programs to choose from, brokers can cater to commercial borrowers’ needs in the way that fits best with their business model. Small-balance commercial is a market with vast opportunity and a track record of success for residential brokers who have tapped into its potential. Will you be next? Michael Boggiano is national sales manager for Silver Hill Funding, a small-balance commercial mortgage lender offering nationwide financing from $250,000 to $1 million. He may be reached by phone at (888) 988-8843 or e-mail mikeb@SilverHillFunding.com.

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Graziadio with access to its series of Commercial Real Estate (CRE) Basics courses, as well as certain Commercial/Multifamily Secondary Servicing (CMF SS) courses where students can earn credits toward MBA’s Certified Mortgage Bankers designation. Students that complete Pepperdine’s course will have the opportunity to apply for candidacy to the CRI Society and earn the Society’s Associate designation. Once accepted as a candidate, the student may sit for the Chartered Realty Investor (CRI) Level 1 exam administered by the Mortgage Bankers Association through its online learning management system. Additionally, qualifying students will be able to subscribe to MBA’s commercial/multi-family Newslink and attend MBA’s Commercial/Multifamily Servicing & Technology Conference in May 2016.

“Home equity installment loans are often more suitable for consumers with credit issues, but the regulatory costs and underwriting burdens have typically made them very expensive for lenders to originate,” Cutts stated. “Conversely, HELOCs are generally more popular among consumers, but less accessible to subprime borrowers. Mortgage insurance is a viable alternative for home equity loans that might be used as piggy-back financing for part of the down payment on the first mortgage and may explain why we are not seeing similar proportionate increases in sub-prime home equity loans.”

Survey Points to Increased Embrace of Electronic Mortgages

Equifax: More Sub-Prime Lending in 2015

While a paperless mortgage world has yet to become commonplace, the 11th Annual Xerox Path to Paperless Survey suggests this concept is closer to reality. According to the survey, roughly threequarters of the mortgage professionals polled have technology in place for the electronic delivery of disclosures or other documents to borrowers, an increase of 15 percent from the previous year. Ninety-two percent of those polled by Xerox expected an increase in their use electronic delivery as a result of the TILARESPA Integrated Disclosures rule. And more than half of respondents believed that half of all loans will be closed as eMortgages in four years or less; last year, only one-third of respondents affirmed that belief. “While completely digital mortgages are not yet the norm, our survey shows continued movement away from shuffling paper from one desk to another and toward online platforms that enhance communication between all parties at every stage of the loan,” said Jeffrey Nuckols, senior vice president of Xerox Financial Services. “The new regulatory effort to improve the mortgage process comes at a time ripe for engaging today’s borrowers who increasingly demand an interactive, digital experience.”

First mortgage originations for subprime borrowers showed significant expansion last year, according to the latest Equifax National Consumer Credit Trends Report. In determining its data, the Atlantabased Equifax used the definition of “subprime borrower” as a consumer with an Equifax Risk Score of 620 or below and measured first origination volume between January and October 2015. The resulting analysis found, on a year-overyear measurement, a 28 percent increase in number of first mortgage originations for sub-prime borrowers and a 45 percent increase in the total balances. “While there are many characteristics that define a sub-prime loan, such as the specific terms of the loan and the lender who issues it, credit standards are becoming more accommodating to meet market demand,” said Amy Crews Cutts, chief economist at Equifax. “At the same time, lenders are focusing more attention on evaluating consumers’ ability to repay. This has led to a much larger reliance on third-party data verifications that enable lenders to more accurately vet sub-prime borrowers much earlier in the origination process.” Indeed, the ability to repay mortgages Survey: Most Commercial appears to be getting stronger: Equifax Real Estate Professionals found that the severe delinquency rate as Backing Trump of last month was 1.77 percent of the total One out of three balance of first mortgages, the lowest level commercial real since September 2007. estate executives Equifax also reported $1.4 billion in believes the best subprime activity within the home equity presidential canmarket during this period, a year-overdidate is a comyear increase of 32.7 percent. The total mercial real estate executive! credit limits on home equity lines of credAccording to the 2016 Real Estate it (HELOCs) reached $608 billion, 6.8 per- Market Sentiment Survey issued by the cent higher than during the same period in 2014. continued on page 52

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Virginia Set to Strengthen Settlement Agent Regulations This Year By Andrew Liput

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The Commonwealth of Virginia is poised to adopt changes to their residential mortgage settlement agent regulations (Chapter 395, Title 14 of the VA Administrative Code). Currently, those defined as “settlement agents,” who do not include law firms and attorneys, must register with the state, maintain a designated trust account, and carry insurance and a fidelity bond. The new regulations, which will retain the exemption for law firms and lawyers, will broaden the definition of who is considered a “settlement agent” to include anyone who “provides escrow, closing or settlement services” that may sweep notary closers into the mix if they have access to funds at the closing since they sometimes “handle money” by receiving and delivering checks. It also appears to require any contractor utilized by a settlement firm to be registered with the state; it is not enough that the firm for which they work is registered. The proposed new regulations also would prohibit “duplicative” and “inflated” fees. Of most concern for many settlement firms operating in Virginia, the changes would impute liability to anyone who hires an outside contractor (notary, escrow or settlement agent) who then causes harm to a lender or consumer. Lastly, agents who close up shop would be required to file a report with the state within 60 days and within 180 days provide a close out report of their trust account. The Virginia Land Title Association is actively lobbying the legislature to ensure that none of the proposed new changes will create an undue burden on its members, or have unintended negative financial or business consequences for title agents statewide. These new developments in Virginia are indicative of renewed focus on managing the closing process better for consumers. The industry is beginning to see a move towards greater regulatory scrutiny and enhanced licensing requirements for settlement agents nationwide, as well as the demand for greater scrutiny of third parties retained by title, escrow, and settlement firms to conduct closing services and who then access lender documents, consumer data, and transaction proceeds. This is a logical and inevitable step forward from the CFPB’s third-party vendor management directives first issued back in 2012. As 2016 unfolds, the industry may see more regulatory changes like those proposed in Virginia that may be slowly but surely creeping toward national standards, best practices and even educational requirements for those who make a living in the mortgage settlement space. Andrew Liput is CEO of Secure Insight, a risk analytics firm offering vendor management services addressing settlement agent risk. He can be reached by e-mail at ALiput@SecureSettlements.com.

new to market continued from page 12

PCs and can be converted to audio books for training on the go. Morf Playbook keeps learners engaged and enthusiastic about what they are learning today and what they need to know to meet their professional goals. “With knowledge and wisdom, well designed technology and communication, we can help people change behaviors, change lives and empower them to perform at the top of their game,” said Bell.

Titan Now Offering Trade Transaction Management Services to Investors Titan Lenders Corp. has announced that it is now offering Trade Transaction Management Services to investors looking to acquire mortgage assets. Through these services, Titan facilitates the administrative tasks and logistical management of acquiring a loan pool. Using its comprehensive mortgage process and compliance foundation, Titan works in collaboration with investors to provide a deeper understanding of the risks the investor is potentially acquiring. After the investor has opened the bid and issued a Letter of Intent (LOI)/Trade Confirmation, Titan manages the due diligence activity on the loans, scrubs and remediates exceptions related to data and documents, conducts a collateral review, and when possible, works with the seller to cure issues. “The process of determining the risk of a seasoned loan is quite different from conducting analysis on a freshly originated loan,” said Mary Kladde, CEO of Titan. “For investors to accurately gauge risk a loan poses in its current life stage requires an innate understanding of the mortgage process, the underlying data associated with the loan file and the compliance vintage of the loan originated, which has always been Titan’s forte.” “In most cases, large investment firms have the capital, but they lack the inhouse knowledge or expertise in mortgage asset analysis,” said Ruth Lee, CSO and EVP at Titan. “Titan offers a turnkey solution to this problem with a software platform and a team of mortgage professionals that are able to steward a trade from initiation to completion.”

Zillow Adds New Functionality to Its Property Search

SPONSORED EDITORIAL

Zillow has announced the addition of a new search filter to the rental search experience, “Community Pillar and Income Restricted,” which brings a new way for renters who qualify as lowincome or may have an imperfect hous-

ing history, to search for their next home on Zillow. “We are so excited to add the ‘Community Pillar and Income Restricted’ filter into the rental search experience on Zillow,” said Rebekah Bastian, Zillow vice president of products. “We’ve heard from renters who qualify for low-income exemptions or may have rental barriers that finding a property is often the biggest hurdle. This new filter will allow them to easily find properties that meet their needs and to connect with landlords and property managers that can help them.” The Zillow Community Pillar program allows landlords and property managers to self-identify as someone who is willing to modify his or her standard tenant screening process in order to help applicants with potential rental barriers secure a new home. Participating landlords and property managers display a Community Pillar badge on their profile and renters can search the directory by those who registered as Community Pillars. Now, this badge will also be seen on the property’s listing page on Zillow. If a property qualifies as income restricted, a renter will be asked if his or her income meets the standard required to rent the property when submitting his or her information to the property manager. These properties will now show under the new filter.

Opus CMC Launches Servicing Oversight Solutions Opus Capital Markets Consultants LLC, a Wipro Limited company, has announced that is has launched its Servicing Oversight Solutions, which will identify operational and loan level risks present within a residential mortgage servicing operation. Opus CMC’s servicing solutions come at a time when mortgage servicers face regulatory pressures, ever-increasing requirements of GSEs and investors, and much higher operating costs. Opus’ Servicing Oversight Solutions are available to banks, servicers and mortgage investors and can be customized to address specific operational or portfolio concerns. The solutions include a onetime operational assessment as well as an ongoing quarterly or monthly loan level review. “Our expansion in mortgage servicing oversight is a natural progression of our mortgage due diligence business,” said Keyur Maniar, vice president and head of Mortgage Solutions for Wipro. “We were able to leverage our management capability and experience in Opus CMC, compliance expertise, knowledgecontinued on page 35

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NAMB PERSPECTIVE The President’s Message: February 2016 A Call For Nominations Now is an important time of year for NAMB. It is time for nominations. We have three separate categories opening. The first two are to be filled at the Delegate Council Meeting in Washington, D.C. at the NAMB 2016 Legislative & Regulatory Conference. The Delegate Council offers up nominations for individuals to serve on two important committees. Positions that are to be filled are on the Bylaws Committee and the Nominating Committee. There is one spot available for each geographic division: One from the west, one from the east and so on. The nominees must be current or past delegates. Those serving on the Nominating Committee would be ineligible for national office, and therefore, should not be those seeking membership on the board. The Nominating Committee has additional requirements. In order to serve on the 20

Nominating Committee, you must have been a professional member for three years and attended a national conference at least once in the previous two years. Once the Delegate Council completes the nominations for these committee seats, there is a written ballot to decide amongst those nominated. Once elected on this ballot, these committee members serve until the next year’s elections at the Delegate Council Meeting. These committees have important work in the coming year. The Bylaws Committee will need to continue the work begun last year and passed at NAMB National. Any changes to the bylaws of the association must be ratified by vote of the membership at our annual meeting, which takes place each year at our national conference. We are in the process of updating our bylaws to meet our current needs. The Nominating Committee serves an equally important purpose. They will meet following the submission of nom-

The CEO Perspective

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

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A Message From NAMB CEO Donald J. Frommeyer, CRMS So you have come to NAMB East and what are you expecting? NAMB has pulled out all the stops for this conference by strategically scheduling time for learning and time for fun. So this answers the questions as to why the afternoons are free. First of all … we decided to get great keynote speakers who will wow you. On Wednesday, Chip Cummings will speak on “Breaking the Boundaries of Success.” He will also talk about the

“Seven Simple Rules” that can change your life. The afternoon is set aside for fun with the NAMB Legislative Action Fund Golf Outing. You can play golf on one of the finest golf courses in America. After golf, there is a reception from 6:30 p.m.-7:30 p.m. to award the golf prizes and to relax and network with others in the exhibit hall. On Thursday, we have Lisa Myers, former Congressional Correspondent for NBC News speaking on “The Politics of Today.” As someone who has been close to the action, she will lend her perspec-

State Associations: From Survive to Thrive! By Fred Kreger, CMC When we meet in Hilton Head, S.C. for NAMB East, we will all be able to start a new process of dialog that will continue each time we meet throughout the year. NAMB wants to hear from all of you. What are your concerns and needs in order to be a

thriving state association? We also want to see and hear from states that might not have their own association or maybe have a group of NAMB members that want to establish a state chapter. This is what we want to hear! I think all of us want to move on from just surviving, to now thriving. Please be prepared to discuss and share with your fellow members.

inations for board of directors’ seats and national officers. They will interview and recommend those to be on the ballot. At about the same time, a call goes out for nominations for the national board and officers. To serve as a national director, one must have served on the Delegate Council or in a position of state leadership. One must also be a Professional Member of the association. If you are thinking about getting nominated, make sure you are a Professional Member and not an associate. The bylaws also require a 75 percent certification status, meaning 75 percent of directors must have a designation–the Certified Residential Mortgage Specialist (CRMS) or Certified Mortgage Consultant (CMC). If you do not have either of those certifications, there is still time to apply and get certified. In fact, there will be a test prep class at the upcoming Legislative & Regulatory Conference in D.C. Being a director on the national board requires a bit of travel and can be a financial burden. You must travel to about four annual events, and donate your time to the betterment of the association. There are also some financial

commitments needed to pay for travel. So make sure your state has registered its attendees for the Delegate Council Meeting in April at the Legislative & Regulatory Conference.. Think and ask those individuals in advance if they would like to serve on the committees seeking nominations. Think about nominations for national positions and prepare yourself to meet the qualifications necessary. This is your association and we need participation from our members to make it work and serve the needs of the industry. We do a lot to represent our members on the legislative front and with our regulators. We work with our wholesale partners for the betterment of our origination channel. We work with vendors to provide goods and services to our members at discounted prices. Now is the time to prepare to serve and be proud of what we do. Sincerely,

tive on the current ace for the White House and some insight into the political realm. This afternoon is set aside for you to enjoy yourself on the beach, on a tour, play more golf or just relax in the sun and on the beach. Again, you end the day with the NAMB Membership Cocktail Reception in the Exhibit Hall. All exhibitors will again be open to meet and greet you after a great day out and about in Hilton Head, S.C. On Friday, Originator Day, we will feature the Originator Roundtable Discussion starting at 8:00 a.m. Bryan Miller from United Wholesale Mortgage (UWM) is going to conduct a fast-paced, industry best practices session, along with ideas and tips on being a better, and more powerhouse originator. The keynote speaker will be former NFL Head Coach and NBC and CBS

Sports Analyst Sam Wyche. His presentation of “How Winners Do It” is sure to be a great discussion from a great winner. The conference ends with another roundtable, “How to be a Successful Mortgage Broker in Today’s New Lending Climate.” Andy Harris, NAMB Treasurer and president of Vantage Mortgage in Oregon, has put together a group of successful mortgage originators and owners to open your eyes to a new brave world. So, as you can see, there are a lot of things that you get for coming to this conference and I promise you, you will learn a lot.

Items to be prepared to discuss:

place in San Antonio and bring you up to date with some of the ins and outs of state leadership and NAMB leadership. This is the first step we are trying to help each of the states become more involved in national leadership. As president of NAMB next year, my job with the Delegate Council is to run the Council and help all of you in your duties as delegates. Over the last couple of years, the meeting of the state delegates has been more of a “here what is going on with NAMB” and not more of an interaction between the states. We have seen many changes in the way state associations

l Government affairs issues that are state-specific that are affecting how you originate l Education needs of your members l State conferences, yearly or bi-annual l Management of the state association l Dues and support needs NAMB has decided to make the Delegate Council get together a leadership gathering. We are going to share with all of you some of the information from the Mortgage Summit that took

Rocke Andrews, CMC, CRMS, President NAMB—The Association of Mortgage Professionals randrews@lendingarizona.net JOINNAMB.com

Donald J. Frommeyer, CRMS is chief executive officer for NAMB—The Association of Mortgage Professional. He may be reached by e-mail at namb.ceo@namb.org.

NAMB PERSPECTIVE are running and what needs that are establishing. We want to start a transition of the Delegate Council Meetings. Not just to vote on one or two items, but to interact with other states. In addition, what needs to be heard on items like local government affairs

issues, membership concerns or how to put on a successful meeting. I thank you all in advance for this opportunity to connect and share with your fellow state members and state associations. I am so looking forward in bringing all of you together in the spir-

The Housing Opportunity Through Modernization Act (HR 3700) Saving $300 million by reforming HUD and RHS By David Luna, CRMS The Housing Opportunity Through Modernization Act (HR 3700) is making its way through the Congress and may have a good chance of being signed into law. The Congressional Budget Office estimates implementing this legislation would save over $300 million over the next five years starting in 2017. Amendments have been added and changed by both Republicans and Democrats and early indications are that President Obama would sign this bill.

What is it?

What would be changed or improved?

l Inspection of dwelling units by a public housing agency (PHA): The PHA must inspect prior to any Section 8 for housing choice payment vouchers. The unit needs to meet housing quality standards. “The housing choice voucher program is the federal government’s major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.” The voucher program allows the family to live anywhere they want even their current home and the PHA subsidies the payment. If the housing is a rental the family would pay the difference to the landlord after the subsidy. “Rental units must meet minimum

l Income limitations: If any recipient’s income of the program increased to 120 percent of the AMI for two consecutive years the PHA would either charge the recipient the greater of fair market rent, taxpayer subsidy or terminate the voucher program for that recipient. l Asset limitation: HR 3700 requires that assistance not be provided if the family’s assets exceed $100,000 or ownership interest in real property is suitable for “occupancy by the family as a residence.”3 l PHA owed units: The bill defines types of units owned by a PHA either entirely owned by the PHA, controlled by the PHA or a company where the PHA holds a controlling interest. l Project based assistance: The bill

would authorize the PHA is use their vouchers to an apartment instead of a person. Also creating 10 percent of its vouchers to create units targeted to the very needy such as the homeless, the elderly, the disabled, and veterans. l Utility data collection: The bill would require, collect and publish how much utility consumption was paid by tenants if the data could be collected in a cost effective manner. l Family unification program: A young adult aging out of foster care could use a housing voucher (if the bill passed) up to a maximum age of 24.4 l Rural housing service: H.R. 3700 would also authorize the RHS single-family housing guaranteed loan program to delegate loan approval authority to preferred lenders, in accordance with standards established by the Secretary of Agriculture. Now whether this means the direct or just the guaranteed loan approvals is not yet clear. As of today, the USDA is the only entity that can approve the direct program for very low and low income borrowers. The guaranteed can be done by banks and lenders approved by USDA. l FHA mortgage insurance for condominiums: HR 3700 would require FHA condominium project certification to be streamlined.

Currently, the recertification is slow and difficult. l Housing reforms for the homeless and veterans: If passed the office of HUD Special Assistant for Veterans Affairs would now report to the Office of the Secretary of HUD. The Special Assistant would be responsible for veteran access to HUD programs as well as a liaison with the VA.5 According to the bill’s sponsor, “This legislation lays the groundwork, for the first time in years, to institute reforms to the programs and processes at the Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture’s Rural Housing Service. As I have said before, this legislation represents the first step in housing policy modernization by making many targeted reforms to streamline regulatory burdens and overhaul inefficient policies and regulations.”

Footnotes 1—Housing Choice Vouchers Fact Sheet HUD.gov 2—Housing Choice Vouchers Fact Sheet HUD.gov 3—See House Report 114-397 at 36 4—See House Report 114-397 at 39 5—See House Report 114-397 at 40

David Luna, CRMS of Mortgage Educators and Compliance in American Fork, Utah serves as director and Communications Committee chair for NAMB—The Association of Mortgage Professionals. He may be reached by phone at (877) 403-1428 or e-mail David@MortgageEducators.com.

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

According to HR 3700, there are 11 changes proposed these would be:

l Income reviews: The income of assisted families in dwellings being assisted by the PHA shall be made initially and annually for qualification unless the family’s adjusted annual income or deductions decrease by 10 percent. “The total annual gross income and family size and is limited to US citizens and specified categories of non-citizens who have eligible immigration status. In general, the family’s income may not exceed 50% of the (area) median income (AMI) for the county or metropolitan area in which the family chooses to live.”2 By law, the PHA must distribute 75 percent of its voucher to applicants whose total annual gross income does not exceed 30 percent of the AMI. There is usually a waiting list for these vouchers designed to help the lowest of income earners.

Fred Kreger, CMC is branch manager at American Family Funding, a Division of American Pacific Mortgage. He is a past president for the California Association

of Mortgage Professionals (CAMP) and currently president-elect and Government Affairs Vice chairman for NAMB—The Association of Mortgage Professionals. He can be reached by email at Fred.Kreger@AFFLoans.com or call (661) 505-4311.

NationalMortgageProfessional.com

This piece of proposed legislation makes a variety of reforms to HUD and Rural Housing Service (RHS) programs. These key government programs (FHA, USDA) are to be improved in effectiveness and provide enhanced opportunities for borrowers.

standards of health and safety, as determined by the PHA.”1

ited exchange. See you all soon. Thank you and Namaste’.

NAMB PERSPECTIVE Don’t Miss the 2016 NAMB Legislative Conference! By

Michelle Velez, CMC

Valerie Saunders, CRMS

Olga Kucerak, CRMS

It’s that time of year again … time to make plans to attend the 2016 NAMB Legislative Conference in Washington, D.C.! This year’s event is scheduled for April 9-12, 2016 at the Hyatt Place, National Mall. This is a “must attend” event for all mortgage professionals. Last year, more than 10,000 real estate agents attended NAR’s Lobby Day. This year, NAMB would love to get 1,000 mortgage professionals to D.C. to help NAMB lobby on Capitol Hill. We have planned an exciting program schedule this year …

Saturday, April 9, 2016

Monday, April 11, 2016

8:30 a.m.-6:00 p.m.—Registration

7:00 a.m.-6:00 p.m.—Registration

9:00 a.m.-Noon—CRMS/CMC Training For those of you that are considering getting your CMC or CRMS designation, this would be a perfect time to get prepared for the test. Cost is $79 and can be included with your registration.

7:30 a.m.-8:30 a.m.—Breakfast

Noon-2:00 p.m.—NAMB Board of Directors Meeting

8:45 a.m.-10:00 a.m.—Freddie Mac Learn about the 2016 homeownership initiatives.

8:30 a.m.-8:45 a.m.—Opening Remarks: Rocke Andrews, CMC, CRMS, NAMB President

2:00 p.m.-5:00 p.m.—Delegate Council Meeting 6:00 p.m.—Membership Appreciation Reception

Sunday, April 10, 2016

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Noon-6:00 p.m.—Registration 2:00 p.m.-3:30 p.m.—Selling in a Purchase Market (Radian National Training) Presenter: Carrie Cooper, Central Regional Training Manager, Radian Group Inc. Can your sales team deliver a concise and compelling reason that a real estate agent should do business with your company? Can they convey the successful traits that set them apart from their competition? In this interactive session, your team works through a series of activities that will develop an opening statement or pitch as to why a referral partner should work with you. Set yourself apart and open those doors to future business! 3:30 p.m.-4:30 p.m.—Home Ready and How to Structure the Deal (Radian National Training) Presenter: John Castiello, Vice President Secondary Marketing, Radian Group Inc. The program will cover how to create the best financing package for your borrower’s utilizing various Mortgage Insurance Options. Special attention will also be placed on utilizing FNMA’s HomeReady product to create attractive financing options for First Time Homebuyers and Diverse Markets. 4:30 p.m.-6:00 p.m.—Beyond Schedule C (Radian National Training) Presenter: Carrie Cooper, Central Regional Training Manager, Radian Group Inc. We will walk through the tax returns from Schedule E, Part II through the Corporate tax return–connecting the dots along the way for items such as the Section 79 Deduction; how to use “Other” income or losses; how to document “Mortgages, Notes and Bonds Payable in less than one year,” and many more items.

10:15 a.m.-11:45 a.m.—CFPB Office of Mortgage Markets Enjoy a wide range of policy and compliance topics. Noon-1:00 p.m.—Break for Lunch 1:30 p.m.-2:30 p.m.—The Industry Discusses Regulatory and Legislative Challenges in 2016 Moderator: Valerie Saunders, CRMS, NAMB Government Affairs Chair l Joe Ventrone, National Association of Realtors (NAR) l Ken Markison, Mortgage Bankers Association (MBA) l Justin Ailes, American Land Title Association (ALTA) 2:30 p.m.-3:00 p.m.—Sen. Joe Donnelly (D-IN), invited, Senate Banking Committee 3:00 p.m.-4:00 p.m.—Focus on Senate Banking Committee/House Financial Services Committee 4:00 p.m.-5:00 p.m.—Advocacy Day Preparation l Valerie Saunders, CRMS, NAMB Government Affairs Chair l Michelle Velez, CMC, NAMB Government Affairs Co-Chair l Roy DeLoach, DC Strategies LLC, Washington, D.C. 5:00 p.m.—Dinner on Your Own

Tuesday, April 12, 2016 7:00 a.m.-9:00 a.m.—Registration 8:30 a.m.-9:00 a.m.—Hill Visit Q & A 9:00 a.m.-5:30 p.m.—Lobby Day Hill Visits

6:00 p.m.—PAC Fundraising Reception This year’s PAC reception will take place on the rooftop of our host hotel. Featuring great food, open bar and exciting fundraising opportunities!

6:00 p.m.—Conference Ends

As we continue to gain sponsors and additional support for HR 3393, The Mortgage Fairness Act of 2015, it is important for every originator to join NAMB as the association rallies to fight for consumers, small business and mortgage professionals everywhere. Cost for this event is $249 and is available to NAMB members only! Don’t delay, register today … now is the time to register to attend, make your flight arrangements and hotel reservations because this event will sell out! For more information, please visit NAMB.org/assnfe/ev.asp?ID=148.

Michelle Velez, CMC is Government Affairs co-chair for NAMB—The Association of Mortgage Professionals. Michelle may be reached by phone at (650) 409-2850 or email Michelle.Velez@WJBradley.com. Valerie Saunders, CRMS is NAMB Government Affairs Chair and may be reached by phone at (866) 992-0785 or e-mail Valsaun@gmail.com. Olga Kucerak, CRMS is NAMB Legislative Conference Chair. Olga may be reached by phone at (210) 828-3384 or e-mail Olga@CrownLending.com.

NAMB+ is an independent, wholly-owned, for-proﬁt marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, I am happy to see so many of you taking advantage of the special discounts and offers available from our NAMB+ Endorsed Providers! Not only are you enjoying tremendous cost-savings and beneﬁts, but every time you purchase products or services from a NAMB+ Endorsed Provider you are supporting your trade association, so thank you! For those of you who are working with one or more of our Endorsed Providers, please feel free to share your experience with us and your fellow NAMB Members on social media, at NAMBPLUS.com, or by emailing me directly. Throughout 2016 we are hoping to gather testimonials from NAMB Members who are working with our Endorsed Providers and share those with all of you. As NAMB+ continues to grow and evolve, we will constantly strive for ways that we can be a valuable resource for you, the mortgage professional. If you have any questions about NAMB+ or the Endorsed Provider program, please

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

do not hesitate to contact me. The NAMB+ Board and I will be at NAMB EAST next month, along with representatives from many of our Endorsed Providers, so please look for us there as well. And remember to visit NAMBPLUS.com anytime to take advantage of one or more of the valuable discounts and promotions available to you! Sincerely,

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

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

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

NAMB members get special pricing plus 1 month FREE. BetterLoanOfﬁcers.com is free to get started with the option to upgrade if you’d like. As an NAMB member optional upgrades are discounted by 10%.

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

Mortgage Currentcy is a subscription-based ezine that interprets the mortgage underwriting and compliance rules in plain, easy-to-understand language and how they affect your ﬁles in process. NAMB Members save $70 on annual subscription option. Visit the Website at www.mortgagecurrentcy.com/tour.php

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

NAMB members receive a 10% discount off regular prices for Warm Welcome LLC services. For more information visit WarmWelcomeLLC.com.

NAMB Members will receive a Twenty-Five Percent (25%) discount off of the regular price with their NAMB Membership. InfoSight, Inc. offers proven and affordable cyber security, risk management, IT Infrastructure and regulatory compliance solutions. Visit www.infosightinc.com or contact us at 305-8281003 / 877-577-9703.

LoanTek’s platform is designed to save time, create better leads, and convert leads into new business.

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

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

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

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

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

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

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

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

NationalMortgageProfessional.com

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

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

NAMB PERSPECTIVE

getting toknow

Kimber White Membership Committee Chair of NAMB B Y

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When trying to appeal to people across the industry to join NAMB— The Association of Mortgage Professionals, Kimber White likes to use a combination of mathematics and cocktails to get across his point on the value of joining the trade group. “It costs $120 a year for professional membership,” he explained. “That’s $10 a month. I tell people that’s little more than the cost of a drink!” White, as the chairman of NAMB’s Membership Committee, is focused on bringing more mortgage professionals into the association. He is also heavily involved on building the mortgage industry in the Sunshine State via his involvement with the Florida Association of Mortgage Professionals (FAMP), as well as in his full-time work as a partner in RE Financial Services in Oakland Park, Fla. National Mortgage Professional Magazine spoke with White concerning his work in the mortgage industry and with the state and national trade associations.

P H I L

How did you get into the mortgage profession? Was this your original career choice? Absolutely not! My original career choice was the extermination pest control business, but I developed allergies to that. My accountant said, “Why not get into the mortgage industry? I have friends in Virginia that own a business.” This was in 1988. So, you became a mortgage professional because … Yes! Allergies to bug spray got me into the mortgage industry! How did you first become involved with NAMB? I had been a member of FAMP since 2012. I was the chairman of the local chapter’s Government Affairs Committee, and was later asked to get involved with the Membership Committee by NAMB Director Linda McCoy. So, here I am in NAMB. What positions do you hold in NAMB, and what are your responsibilities? I am on the board of directors and I

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am the chairman of the Membership Committee. As Membership Committee chairman, my duties involve offering benefits to our members to help them grow their business, while enhancing our membership. With the board, we oversee policy and procedures and make decisions that affect members. Would it be safe to assume that this takes up a lot of your time? I spend about four to five hours a week working on behalf of NAMB. I am also on the FAMP Executive Committee, serving as the association’s treasurer, so that is another 20 to 25 hours a month. And all of this is going on while I am producing originator–that’s the rest of the week. For someone who is very busy with their day job, you seem to devote a great deal of time and energy to both the state and national association. Why do you do this? The mortgage industry is my passion and life. I truly enjoy

helping people and giving back to help the membership. What do you see in 2016 for the mortgage profession? This will be a strong year. I see mortgage profession growing. The broker business is coming back. Our industry has definitely stabilized. Most everyone came off the year 2015 in a strong position, and we are all adjusting to the changes of TRID. I don’t think we will see the growth like we did last year, but it will grow. What is the housing market like in your home state of Florida? We were the first place where it all fell apart. Today, there are parts of the state that are still coming up, but overall, things have stabilized. Overall, Florida is growing faster than other states–the housing market is very, very strong. Florida is also benefitting from an influx of international buyers, correct? Most of international buyers are

NAMB PERSPECTIVE concentrated in Miami. According to the latest statistics, 56 percent of all purchases in Dade County are made by foreign nationals and are in cash. Here in Fort Lauderdale, we have some international buyers. But South Florida is also strong with new condos and condotels. Condotels? I haven’t heard that word in a while! We have them in South Florida. Every now and then, I get asked by someone if they can finance a property in a brand new condotel development.

With so much work going on, how do you spend your leisure hours? I spend it with my spouse and a

lot with my Yorkie, Benjy. I like to travel and relax at home, where I tend to orchids–I have about 200 orchids. And I am still connected to my network of close friends. Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.

Why choose MBS Highway? BARRY HABIB— THE ORIGINATOR OF THE MARKET ADVISORY SERVICE Daily guidance and insights from Mortgage Market expert Barry Habib. He closed over $2 Billion in production as a Loan Originator, called the bottom of the Housing Market and currently provides sales and market training to thousands of Loan Originators across the country. STATE OF THE ART, USER FRIENDLY WEBSITE We've taken great pride in building a website that uses new technology, and enhances the user experience. No matter where you are on our site, you'll always have market data in sight. Never miss a lock alert with our real time market news and alert system.

EASILY SHAREABLE CONTENT With a touch of a button members are able to share charts showing the latest economic and housing data.

REAL ESTATE DATA & INSIDER CONTENT Show the housing opportunity in your local market to customers and real estate agents. We will provide you with affordability levels, appreciation, resale volume, new construction, and job growth…updated monthly and easily shared. There is also additional content from Art Cashin, Kiplinger letters, and much more.

MOBILE WEB APP Always stay in touch with the market when on the go with our Mobile Web App. It's fast and easy to use. Whether you have an iPhone, Android, Blackberry, Windows Phone, you'll always have access to MBS Highway. No downloads, no annoying updates, just visit m.mbshighway.com in your phone or tablet's browser. CALCULATORS AND TOOLS Powerful and unique calculators to help you when presenting to customers. Buy vs. Rent, ARM vs. Fixed, Paying Points, and Amortization calculator are a few examples. You can save and share the results to beat your competition.

What you're getting with your MBS Highway trial l Bond Quotes l Daily Video and Transcript l Interactive Charts l Lock/Float Advice l SMS Updates l Real Time Market News l Cashin's Corner l The Kiplinger Letters l Real Estate Market Data l By The Number$ l MBS TrendTRAKR l Social Share

Try it FREE for 14 days at MBSHighway.com/MNN

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Looking back on your career, what do you see as you greatest accomplishments? Any time I am able to put a firsttime homebuyer into a home. It is

the Year Award for the state. I won the Mortgage Broker of Year Award three years in a row. But I always make sure that whenever I’m awarded something that I stay humble with that.

NationalMortgageProfessional.com

Back to the national picture … there has been a great deal of talk about getting younger people into the mortgage profession. What is your take on that situation? As an industry, we have to work harder, at both the state and national level, to get Millennials involved. I’m 56-years-old, and I was a Millennial when I got into the business. We’re not doing enough to reach out to them. We should try to find and start a Millennials Committee and get a couple of Millennials in each state and get them involved. We have to look at the future, not back in time. We need to look at how the next generation will carry on the industry for us. But, with all the regulations we have, we want to recruit quality professionals. I have 10 loan originators, but I just don’t want bodies. I want professionals who know how treat clients and want to make this a career and not a job–and that is a big difference. Also, it is hard for some small companies to attract Millennials when a bank may offer $35,000 as an annual salary. Younger people want to have the insurance of a salary. And small companies often find it harder to do long-term training that their people need.

also making sure every borrower is educated and comfortable with process and fits into right product. Remember, we’re not mortgage brokers–we are mortgage professionals, and the people we work with are going to be a client for life. As for accolades, in my first year with FAMP, I won the President’s Award and the Mortgage Broker of

NAMB PERSPECTIVE

NAMB East 2016

Wednesday-Friday, March 9-11, 2016

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

NationalMortgageProfessional.com

Westin Hilton Head Resort on Hilton Head Island, S.C.

A Message From NAMB East Committee Chair Linda McCoy, CRMS I hope you have your bags packed, made all of your reservations and are ready for a great time. We are definitely planning on mixing business with pleasure here in Hilton Head, S.C. I hope you are planning on attending the classes that interest you and take a lot of time to visit with the exhibitors who are always bringing new and fresh ideas to the industry. Whether itâ&#x20AC;&#x2122;s a lender who has made it easier for us to close loans, or a company helping us build our businesses by lead generation, giving us new marketing ideas or giving us a program to create better applications, we have brought them all together under one roof. Do not forget the Golf Tournament benefiting the Legislative Action Fund (LAF). Probably one of the most important things you will be able to do at NAMB East is network with people all around the country and find out what they do well and share ideas with each other. I have been telling you that this conference is for Originators and the people who support the originators. The main reason people really come to a conference is to be inspired. We could go to classes at home or online, but inspiration is something you experience firsthand at NAMB East. NAMB East has those great speakers lined up just for you. We have also added a Leadership Gathering for Delegate Council members or those who want to become leaders in NAMB for their state affiliates. Fred Kreger, incoming NAMB president, is going to share with all of you the information from the Mortgage Summits. This is the first step Fred is taking in trying to help each of the states become more involved in national leadership. We need you. We hope to see you in Hilton Head, S.C. for NAMB East 2016! Linda McCoy, CRMS is broker/owner of Mortgage Team 1 Inc. in Mobile, Ala., a member of the NAMB Board of Directors and serves as NAMB East Committee Chair. She may be reached by phone at (251) 650-0805 or e-mail linda@mortgageteam1.com.

NAMB East 2016 is presented by United Wholesale Mortgage

NAMB PERSPECTIVE

NAMB East 2016 Wednesday-Friday, March 9-11, 2016 Westin Hilton Head Resort on Hilton Head Island, S.C.

elcome to the all-new NAMB East conference and show, presented by United Wholesale Mortgage (UWM). We deliver hands-on knowledge for all attendees, exceptional sessions with some of the leading regulatory officials in the nation, opportunities to expand your business with our many exhibitors and sponsors, and a wide array of special networking opportunities that add a dash of fun to your experience. We’re pleased to have you join us at NAMB East—the most important event for the loan origination community in the nation.

Schedule of events Agenda subject to change.

5:00 p.m.-8:00 p.m. Exhibitor Setup 9:00 a.m.-11:30 a.m. NAMB Board of Directors Meeting

Wednesday, March 9 6:00 a.m.-8:30 a.m. Exhibitor Setup 8:00 a.m.-9:00 a.m. NAMB East Opens

10:00 a.m.-10:45 a.m. Concurrent Session: Turn Trash Into Treasure–Producing Profits With Private Lenders Stop throwing money in the trash! With private lending, you have profitable solutions for deals that don’t fit traditional guidelines. Jeffrey Tesch, managing director of RCN Capital and a renowned authority on private lending, will show you how to make money from your most commonly overlooked leads. 10:00 a.m.-10:45 a.m. Concurrent Session: Use the New Sub-Prime Tom Hutchens, SVP of sales and marketing with Angel Oak Mortgage Solutions, discusses the difference between the sub-prime of the crash and the new sub-prime of today. Today’s subprime loans are responsible and safe, and comply to all legal regulations. The client’s ability-to-repay (ATR) is the most important factor in the underwriting decisions made on today’s subprime loans. As rates continue to increase, alternative lending will become the industry’s new normal.

11:00 a.m.-11:45 a.m. Concurrent Session: Supercharge Your Business in 2016 Mat Ishbia, president and CEO of UWM, will share exclusive tactics to increase your market share and retain and recruit top talent, along with his insider tips on the residential housing market. Mat has been recognized as a leading advocate of brokers and originators throughout the country by national media outlets and publications such as Fox Business, CNBC and I. Don’t miss this fast-paced, high-impact presentation. 11:00 a.m.-11:45 a.m. Concurrent Session: What’s in Store for Appraisals–And What Lies Beyond TRID? Dodd-Frank, the new AMC rules, and the implementation of TRID on Oct. 3, our industry faces ever-increasing challenges. Perhaps the biggest challenge is a troubling lack of clarity from Regulators around how to interpret these ground-shifting rules. Spend this session with us as we look at what lenders, regulators and AMCs believe is in store for us all. This will be a great opportunity to ask your own questions about the changing

NAMB East 2016 is presented by United Wholesale Mortgage

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

9:00 a.m.-9:50 a.m. Opening Keynote Presentation Chip Cummings: Breaking the Boundaries of Success Success is available to anyone! The limitations that prevent you from achieving your dreams are self-imposed, and can be eliminated by focusing on the “Seven Rules for Success.” Discover how to break through personal barriers in this fun and entertaining look at the road less traveled … the one to success!

10:00 a.m.-10:45 a.m. Concurrent Session: Getting More Out of Your VV Market … Secrets to Going From Two Percent to 70 Percent VA Origination in Only Two Years Richard Bettencourt and Ken Bates combine to originate nearly $100 million per year in VA home loans. The Veterans Administration is coming off their best year and they expect a 36 percent increase in VA originations over the next 12 months. In this session, sponsored by Premier Nationwide Lending, you’ll learn the nuts and bolts of VA origination and strengthen industry professional relationships. A breakout session you don’t want to miss, come listen as NAMB VA Committee Co-Chairs Rick and Ken give you their keys to success in an ever growing VA market!

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10:00 a.m.-10:45 a.m. Concurrent Session: Everything You Wanted to Know About Online Mortgage Origination But Were Afraid to Ask This session is a high-level primer covering the essential information you need to know if you’re looking to originate mortgages online. Participants will learn the various methods of online consumer aggregation, what technologies may be required based upon their approach, anticipated timelines for results, and the methods for measure and improving success rates. A fun and interactive class ‘Everything You Wanted to Know’ is guaranteed to provide insights to help you grow your business online. Taught by Adam Stein, a 20year veteran of online mortgage origination, and president of LoanTek, a division of Bankrate.

Tuesday, March 8

NAMB PERSPECTIVE

NAMB East 2016 Wednesday-Friday, March 9-11, 2016 Westin Hilton Head Resort on Hilton Head Island, S.C.

landscape we all face–and hopefully come away with some empowering answers. Presented by Michael Simmons, senior vice president of Axis Appraisal Management. 11:00 a.m.-11:45 a.m. Concurrent Session: Adding Unique Loan Programs To Your Arsenal This session will highlight out-of-the-box mortgage programs with reverse and renovation loans. In such a competitive marketplace, we’re all looking for something that will help our business to stand out. Incorporating unique loan programs like reverse or renovation loans will not only help you to grow your business, but it will also help to distinguish your niche. Join us to hear how loan programs such as these are really taking off in the marketplace. Don’t miss this opportunity to learn something new! Presented by Mark Reeve, reverse mortgage national director, and Rich Martinson, VP of secondary marketing for Plaza Home Mortgage.

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11:00 a.m.-11:45 a.m. Concurrent Session: How to Succeed in the Face of Technological and Regulatory Changes Learn about how Thuan Nguyen, now CEO/founder of Lenderrate.com, started his mortgage brokerage business from scratch. Without any experience, he acquired the skills to beat his competitors, market his brand, and thrive in his very own business. Within five years since opening his business, he has become a contender for the top 15th spot in the “Scotsman Guide” Top Originators. He has closed $188 million (577 loans) in 2015 and is now releasing his very own SaaS product to help brokers and originators win clients and run business more efficiently. Come and learn the fundamentals of staring your own business in this educational and insightful session. Noon-6:00 p.m. NAMB Legislative Action Fund Golf Tournament & Free Time for Attendees Exhibit Hall closed during this period.

oric presidential campaign of Ross Perot also was praised by TV Guide and critics. Before being tapped to lead NBC’s investigative team, Myers was NBC’s chief congressional correspondent, where she became well known for insightful analysis and hard-hitting investigative reports. She received an Emmy nomination for a series of reports in 1999, revealing that the brutal murder of an Army private at Ft. Campbell, Kentucky, was an antigay hate crime and part of widespread harassment of gays in the military. She had a number of exclusives during the Clinton scandals—from Whitewater to the 1996 campaign fundraising scandals, Monica Lewinsky to the Clinton pardons. On “Dateline” NBC, she aired an exclusive interview with “Jane Doe #5,” Juanita Broaddrick, an Arkansas woman who claimed Clinton sexually assaulted her—a report praised by many critics. In 1998, Vanity Fair recognized Myers as one of the 200 Most Influential Women in America. She has also won Gracie, Clarion, Headliner, and Humanitas Awards. Before joining NBC in 1981, Myers was White House correspondent for The Washington Star. Between 1977 and 1979, she was a Washington correspondent for The Chicago Sun-Times. Myers was awarded a Bachelor of Journalism degree from the University of Missouri and attended Georgetown University’s Institute on Comparative Political and Economic Systems. 10:15 a.m.-11:00 a.m. Concurrent Session: Renovation Lending 101 and Beyond “Yes, I have heard all about renovation lending, but it’s not applicable to my market or business.” If this has ever gone through your mind, you are missing out on a huge opportunity. During this session, we will discuss why renovation lending is a tremendous tool that will new heights, and how you will be able to incorporate it into your business to: Generate more powerful referrals, strengthen your realtor relationships, cultivate new referral sources, and convert more of your existing opportunities. Damon Richardson, renovation lending specialist at REMN, will cover all of these topics as well as the standard procedural information regarding the FHA 203(k) program, the Fannie Mae HomeStyle program, and the enhancements added to the HomeStyle by HomeReady. 10:15 a.m.-11:00 a.m. Concurrent Session: Moving Forward With Reverse This engaging and interactive session will introduce you to the new reverse mortgage product and highlight why now time to “Move Forward with Reverse!” Presented by Tabatha Addison, vice president of business development and training at American Advisors Group.

1:00 p.m. NAMB Legislative Action Fund Tee Time 6:30 p.m.-7:30 p.m. Evening Cocktail Reception Vendors open at this time.

Thursday, March 10 8:00 a.m.-8:50 a.m. State Affiliate Leadership Meeting 9:00 a.m.-10:00 a.m. Opening Keynote Presentation: The Politics of Today Lisa Myers, Former Congressional Correspondent, NBC News In 2007, Lisa Myers and her team received some of the most prestigious awards in journalism for their multi-part investigation exposing efforts by the U.S. Army to scuttle a promising technology, called “Trophy,” designed to protect soldiers from rocket-propelled grenades. The series won the George Polk Award for investigative reporting, the Joan Barone Award for Washington reporting, a Business Emmy, and a Gerald Loeb Award. In 2008, she won an Emmy Award for an investigation which raised questions about the testing of body armor for U.S. troops. Myers has covered nine presidential campaigns and was a floor reporter at many Democratic and Republican conventions. In the 2000 election, she broke the story that George W. Bush had selected Dick Cheney as his running mate. Her reporting on the mete-

10:15 a.m.-11:00 a.m. Concurrent Session: How to Succeed in a Rising Rate Environment It has been many years since we have experienced a material increase in mortgage rates. While higher rates are never inevitable, it is always good to be prepared for higher rates and the impact that could bring to the industry and borrowers alike. This session will address what to expect if mortgage rates move higher in 2016, and what mortgage professionals can do to be prepared for such an environment. Industry volume, investor demand, and product development are all expected to adjust with any shift in the yield curve. Get an inside look at how industry leaders are preparing for risks and opportunities that may present themselves in a rising rate environment. Presented by Matthew Ostrander, chairman and CEO of Parkside Lending. 10:15 a.m.-11:00 a.m. Concurrent Session: Small-Balance Commercial Mortgages: Jumpstart Your Business in 2016 With FNMA predicting a 16 percent drop in residential loan volume this year, 2016 is sure to be a year of change and adjustment for the residential real estate market. Top producing originators know their continued success will stem from their ability to adapt by expanding into new, profitable product areas. Join other smart mortgage originators as they hear

NAMB East 2016 is presented by United Wholesale Mortgage

NAMB PERSPECTIVE

NAMB East 2016 Wednesday-Friday, March 9-11, 2016 Westin Hilton Head Resort on Hilton Head Island, S.C.

Silver Hill Funding’s National Sales Manager Michael Boggiano reveal how diversifying your business with small balance commercial mortgages can have a big impact on your bottom line in 2016. 11:15 a.m.-Noon Concurrent Session: Success Secrets You Can Profit From The mortgage industry is evolving rapidly through a convergence of technology, legislation, and demographics. The story of evolution is one of adaptation or extinction. In this session we’ll discuss six critical elements to success in this brave new world–integrity, client obsession, technology, clarity, people and partnership. We’ll be digging in with specific case studies and actionable strategies for immediate implementation. Presented by David Schroeder, vice president of Quicken Loans Mortgage Services. 11:15 a.m.-Noon Concurrent Session: Expand Your Market Successfully With Government Loan Programs A discussion to empower brokers on how to expand their market reach with government loan programs for borrowers that may not have been eligible for traditional loans in the past. An overview of loan programs and tools that can help you turn credit-challenged borrowers into customers for life. Take your business to new heights by expanding your market with customers and potentially new referrals that you never had before. Presented by Rey Maninang, SVP, national sales director for Carrington Mortgage Services Wholesale Lending.

Noon-6:00 p.m. Free Time for Attendees Exhibit Hall closed during this period.

9:45 a.m.-10:45 a.m. Closing Keynote Presentation: SAM WYCHE, Former NFL Head Coach of the Cincinnati Bengals, and Former NBC and CBS Sports Analyst “How Winners Do It” Sam Wyche was a successful head football coach in the National Football League (NFL) for 12 years. In 1996, he was a sports analyst with Marv Albert on a weekly NFL game for NBC. In 1997, he was promoted to the studio on NBC’s weekly pre-game and half time shows. After NBC lost the contract for NFL games to CBS, Sam was employed as an analyst by CBS with Kevin Harlan on the weekly NFL games. Sam was considered one of the most innovative coaches in the NFL as well as a master of motivation techniques. Sam’s inspiration was the key to one of the biggest turnarounds in NFL history when the Cincinnati Bengals went from 4-11 in 1987 to the Super Bowl the next year. Sam’s playing and coaching career in the NFL spans 27 years. He was one of the original Cincinnati Bengals in 1968. He later played for the Washington Redskins, Detroit Lions, St. Louis Cardinals and Buffalo Bills before retiring as a player in 1976. He began his coaching career with Bill Walsh and the San Francisco 49ers in 1979. He was the head coach at Indiana University for one year before taking the same post with the Cincinnati Bengals in 1984. Sam ended his coaching career in 1995 after four years as head coach of the Tampa Bay Buccaneers. He spent one year with Marv Albert as a color analyst and one year in the studio pregame and half time shows with NBC. He joined CBS in 1998 as a game partner with Kevin Harlan until 2000. In January, 2004, Sam became the Quarterback Coach with the Buffalo Bills. Sam is an accomplished speaker and magician. The lessons he has learned on the field can be helpful to everyone. He presents them with a delightful sense of humor and a personal appeal that keeps an audience excited. Sam can tailor a presentation to the specific needs of an audience weaving stories of triumph and the work ethic into a message that will inspire and motivate a group as it learns how his approach to achieving success on the field can be adapted to any endeavor. Sam was born and raised in Atlanta and earned his BA degree from Furman University and his MBA degree from the University of South Carolina. Sam and his wife, Jane, have two children (Zak and Kerry) and three grandchildren. Sam has been a private pilot for many years. He also enjoys golf, tennis, jogging and riding his Harley.

7:15 p.m. Raffle Prizes Announced

11:00 a.m.-Noon How to be a Successful Mortgage Broker in Today’s New Lending Climate Join a roster of high powered brokers for a no-holds-barred panel and audience participation session. This will be an exclusive brokerage talk for ops and compliance, sales, and more. Panelists include Andy Harris, president of Vantage Mortgage Group in Portland, Ore.; Olga Kucerak, principal of Crown Lending in San Antonio, Texas; and Valerie Saunders, of RE Financial Services in Tampa, Fla., and Dale DiGennaro, president of Custom Lending Group in Napa, Calif.

7:30 p.m. Exhibit Hall Closes

Noon-12:15 p.m. Conference Wrap-Up and Conclusion

6:30 p.m.-7:30 p.m. Evening Membership Cocktail Reception Vendors open at this time.

NAMB East 2016 is presented by United Wholesale Mortgage

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

11:15 a.m.-Noon Concurrent Session: Close More Loans in 2016 With Risk-Based Pricing In a challenging 2016 marketplace, brokers need to stand out! How will you compete successfully for mortgage business and earn repeat referrals? Being able to offer your clients more affordable mortgages could be the competitive advantage that sets you apart. Kim Schubert, VP of Sales Solutions at Arch MI, introduces the new RateStar solution and explains how its risk-based pricing model for mortgage insurance (MI) can help you lower the monthly payment for qualifying borrowers.

8:00 a.m.-9:30 a.m. Originator Roundtable Bryan Miller, AVP of United Wholesale Mortgage, will be conducting a fast paced, industry best practice session. Join Bryan, along with a dozen top originators nationwide during this must see, interactive best practice session. Bryan and select top originators will be discussing buying leads, what’s working; how to brand yourself in this competitive market and creating a powerhouse team to back you up.

NationalMortgageProfessional.com

11:15 a.m.-Noon Concurrent Session: The Keys to Building Successful Technology Partnerships Technology is an integral part of our day-to-day business activities. So building a strong relationship with your technology providers is essential to continued success. This panel, led by Tate Kesner of Calyx Software, will examine the key elements needed to build the best partnerships with your technology provider, including longevity, diversity, depth of knowledge, support, educational offerings, flexibility, affordability and capacity to allow you to grow.

Friday, March 11

NAMB PERSPECTIVE

NAMB East 2016 Wednesday-Friday, March 9-11, 2016 Westin Hilton Head Resort on Hilton Head Island, S.C.

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

NationalMortgageProfessional.com

List of Exhibitors (as of 02/16/16) Company name Booth # ACT Appraisal ........................................................62 American Advisors Group (AAG) ............................39 Angel Oak Mortgage Solutions LLC........................50 Arch MI ..................................................................5 Avantus ................................................................22 Axis Appraisal Management Solutions ..................47 Banc Home Loans ................................................12 Best Rate Referrals ................................................42 Brokers Compliance Group ..................................19 Colony American Finance ....................................18 Caliber Home Loans..............................................75 Calyx Software ......................................................25 Carrington Mortgage Services................................33 Citadel Servicing Corporation................................32 CMG Financial ........................................................6 Fannie Mae ..........................................................38 First California Mortgage Company ......................68 FirstFunding Inc. ..................................................14 Flagstar Bank ........................................................36

Franklin American Mortgage ................................66 Freedom Mortgage................................................17 Guaranty Trust ......................................................71 Homes.com ..........................................................37 Homeward Residential..........................................60 Impac Correspondent ............................................3 Impac Mortgage Corporationâ&#x20AC;&#x201C;Wholesale ..............20 Lakeview Wholesale ..............................................70 Land Home Financial Services Inc. ........................4 LenderRate.com ....................................................16 Liberty Home Equity Solutions Inc. ......................51 Loan Simple ............................................................1 LoanTek, a division of Bankrate ..........................35 Maximum Acceleration ........................................13 MB Financial Bank ................................................45 MobilityRE ............................................................30 Mortgage Educators & Compliance ......................74 Mortgage News Network ........................................7 NAMBâ&#x20AC;&#x201D;The Association of Mortgage Professionals ....58 National Mortgage Professional Magazine..............7

New York Community Bank ..................................23 Pacific Union Financial LLC ..................................15 Parkside Lending LLC ............................................21 Planet Home Lending ..........................................29 Plaza Home Mortgage Inc. ....................................46 Premiere Nationwide Lending ..............................43 PRMG ....................................................................40 Quicken Loans Mortgage Services ........................64 Radian ..................................................................57 RapidAdvance ......................................................65 RCN Capital ..........................................................48 REMN Wholesale ..................................................55 Reverse Mortgage Solutions (RMS) ........................52 Scotsman Guide Media..........................................27 Silver Hill Funding ................................................73 Southwest Bank ....................................................72 Stearns Lending ....................................................31 U.S. Bank Home Mortgage ....................................28 United Mortgage Corporation ..............................61 United Wholesale Mortgage (UWM) ......................53

NAMB East 2016 is presented by United Wholesale Mortgage

The Westin Hilton Head l Two Grasslawn Avenue l Hilton Head Island, SC SPEAKERS Wednesday, March 9th l 11:00 a.m. - 11:45 a.m. SUPERCHARGE YOUR BUSINESS IN 2016 MAT ISHBIA, president and CEO of UWM, will share exclusive tactics to increase your market share and retain and recruit top talent, along with his insider tips on the residential housing market.

CLOSING KEYNOTE PRESENTATION

Golf Tournament Beneﬁting the Legislative Action Fund Wednesday, March 9, 2016 l Registration at 12:00pm l Shotgun start promptly at 1:00pm

Contact Vincent M. Valvo 860-922-3441 l namb@agilityresourcesgroup.com l www.nambeast.com

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Friday, March, 11th l 9:45 a.m. - 10:45 a.m. HOW WINNERS DO IT SAM WYCHE, Former NFL Head Coach of the Cincinnati Bengals: Former NBC and CBS Sports Analyst

NationalMortgageProfessional.com

Thursday, March 10th l 11:15 a.m. - Noon SUCCESS SECRETS YOU CAN PROFIT FROM DAVID SCHROEDER, VP, Quicken Loans Mortgage Services will discuss six critical elements to success in this brave new world – integrity, client obsession, technology, clarity, people and partnership.

2015

NAMBPACâ&#x20AC;&#x201D;The Voice of the Mortgage Originator Dedicated to Preserving the American Dream

et me introduce you to a very special group of NAMB Members who are helping to elevate NAMB and NAMBPAC to a whole new level! While NAMB could not do what it does without the support and generous contributions we receive from mortgage professionals across the country, I want to specially recognize these 11 individuals who achieved Diamond-Level PAC Contributor Status in 2015. Reaching the NAMBPAC Diamond Contributor Level means that each of these individuals made a financial contribution to NAMBPAC for the maximum amount permitted under Federal Election Law. I cannot thank you all enough! Your commitment to your Association and to our industry is unwavering, and you are a huge reason why NAMB is able to do what we do. On behalf of myself, the NAMBPAC Committee, and the entire NAMB Board of Directors, let me just say once again, THANK YOU! John G. Stevens, CRMS 2015-2016 NAMBPAC Committee Chair 32

and currently vice president and Government Lisa Severseike Lisa Severseike is branch manager Affairs vice chairman for NAMBâ&#x20AC;&#x201D;The Association and loan officer at Global State of Mortgage Professionals. Mortgage, a division of American David Luna, CRMS Pacific Mortgage in Ames, Iowa David Luna is president of Mortgage (NMLS#: 1850/7911). Educators and Compliance, and an NMLS-approved education proJohn Porter vider. He presently serves on John Porter is a former NAMB treasurer and NAMBPAC Committee national and state boards, and holds several chair and has consistently been a national and state certifications. top-level NAMBPAC contributor since 1996. Shane Lester, CMC, CRMS Shane Lester is the founder of Fred Kreger, CMC Wonder State Mortgage and Fred Kreger is the branch manager at Reverse Mortgages of Arkansas. American Family Funding, a Division Shane is currently the only Certified of American Pacific Mortgage. He is Mortgage Consultant (CMC) in the state of a past president of the California Arkansas, which is earned and recognized by Association of Mortgage Professionals (CAMP), NAMB.

2015

NAMBPAC—The Voice of the Mortgage Originator Dedicated to Preserving the American Dream

John Councilman, CMC, CRMS John Councilman is immediate past president of NAMB, and has served in many capacities at NAMB, including FHA Committee Chair, treasurer,

He is a member of NAMB and serves on the Delegate Council chair and was named National association’s Government Affairs Committee and Mortgage Broker of the Year in 2009. John still Membership Committee. manages AMC Mortgage and is a licensed originator in Maryland, Pennsylvania and Florida.

For additional information about NAMBPAC, please feel free to contact me or visit namb.org. John G. Stevens, CRMS • 2015-2016 NAMBPAC Chair

JohnGStevens@Gmail.com * Federal Election Law requires NAMBPAC to use its best efforts to collect and report the name, address, occupation and employer of everyone who contributes $200 or more in a single year. If your contribution to NAMBPAC in 2015 is less than $200, your name may not appear on this list, but NAMBPAC is still very grateful for your generous support!

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Kimber White Kimber White is a partner at RE Financial Services in Oakland Park, Fla. He has more than 27 years of experience in the mortgage industry.

NationalMortgageProfessional.com

Andy W. Harris, CRMS Ginny Ferguson, CMC Andy W. Harris, CRMS is president Ginny Ferguson, CMC is the owner and owner of Lake Oswego, Ore.and the broker of Heritage Valley based Vantage Mortgage Group Mortgage Inc., a mortgage brokerage Inc., and is past president of the in Pleasanton, Calif. Ginny is a past Oregon Association of Mortgage Professionals vice president and secretary for the NAMB board (OAMP). of directors, as well as a past president and Education Committee chair for the California Olga Kucerak, CRMS Association of Mortgage Professionals (CAMP). Olga Kucerak has been developing relationships with her clients since Michelle Velez, CMC 1986. To provide better customer Michelle Velez is immediate past service and a variety of financing president of the California Association options, she established Crown Lending Inc. in of Mortgage Professionals (CAMP) 1999. She currently serves on the board of and a director for NAMB. Michelle is NAMB and holds the Lending Integrity Seal of currently a sales manager for W.J. Bradley Approval. Mortgage Capital LLC in San Mateo, Calif.

NMP Book Review “Selling Your Business for More Than Its’ Worth” By Michelle Seiler-Tucker

By Charise James The book, Selling Your Business for More Than Its’ Worth by Michelle Seiler-Tucker, is a how-to guide to selling your business and getting the best deal you can in the process. It helps readers who are looking to sell their business, your “legacy” as the author SeilerTucker refers to it, as the thing they worked most of their life to make great and to get a fair price for it. Even if you do not plan on selling your business any time soon, it is still a book I would suggest you read if you are a business owner. You never know what things you may be doing that could harm potential growth and salability in the future. Though I enjoyed the whole book, there were three points I found to be key. As a business owner myself, I

felt this was a well-written informational guild to making sure I’m a success while running my business and what to do after I’m ready to let it go to someone else who is able to carry the torch. For me, the most important part of selling your business is knowing what type of buyer you are looking for. Like most things, not everyone will be a good fit for what you are trying to accomplish. In the first chapter, Seiler-Tucker lists five types of buyers. Before reading this book, I thought there was only one type, the type with the funds to make a purchase. Clearly, I was under the impression that as long as money was being offered, you should take it and run. Before you follow that train of thought, you might want to consider what happens in two years when you walk past the business you worked so hard to create and see a “going

out of business” sign on the door. If you match yourself with someone who wasn’t right for you, it could lead to heartbreak. That is where the help of a business broker comes in. Sieler-Tucker currently runs a business brokerage firm and throughout the book, she gives her own firsthand experiences to buying and selling the right way. After you find a broker, the worst thing you can do while trying to sell is to tell everyone you are selling your business. In the day and age of social media, posting the sale of your business can lead to disaster. Employees need to know everything is functioning normally. Trust is key in order to keep the business going after a change in ownership. SeilerTucker has great points about competitors finding out you are selling. You can have your business fail because a competitor will tell

everyone you plan to sell and create more issues you don’t want or need. The final key point for me was getting your buyer to become emotionally connected to your business. It’s true that people are emotional beings, so why would you want to sell to someone who isn’t emotional about what you have to offer. You need them to care just as much as you for the sale to feel right. Selling Your Business for More Than It’s Worth is a must-read for those looking to sell a business or purchase one. This is a very informative and good read for any business owner or someone looking to start their own business. Charise James is owner of Charise James Publications, a book editor and author. She may be reached by e-mail at ChariseJamesReadMe@gmail.com.

new to market continued from page 18

able staff and product development capabilities to design a robust oversight solution that will allow servicers to operate with confidence.” Opus CMC’s servicer operational assessment includes a thorough review of the servicing operation including processes, policies, management, risk controls, systems, reporting and regulatory compliance. Opus CMC’s ongoing reviews offer a more detailed look at the portfolio and loan level practices such as quality control, data integrity, loss mitigation activities, timelines, cash management, investor reporting and call monitoring. Opus CMC’s servicing group provides clients with a detailed report on the servicing operations performance across the various areas of interest (AOI). The report also proactively identifies areas of potential concern and provides critical insights that enable the client to make informed business decisions. “In the current environment, the implications of improper loan servicing practices are far reaching,” said Jennifer LaBud, chief operations officer for Opus CMC LLC. “Ensuring top-notch servicing performance means greater operating yields, fewer fines as a result of audits and increased returns for investors. Opus CMC’s servicing oversight solutions are designed to help you identify and remediate servicing defects that could otherwise result in drastic impact on the business.”

Accurate Group has announced the

continued on page 38

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Mortgage Builder has announced its new Closing Conduit module. Closing Conduit is offered as an add on module to the Mortgage Builder Loan Origination System (LOS) and can significantly improve the collaborative process between lenders, settlement agents and other third-parties as they finalize closing disclosures. Home closings are more efficient because loan originators do not need to exit the Mortgage Builder LOS as disclosures are finalized and more accurate because data is shared electronically. Closing Conduit can also help lenders, title companies and other parties involved in the closing process to comply with CFPB regulations by maintaining an audit log of the settlement-related transactions including comments shared between participants. “Mortgage Builder’s Closing Conduit allows us to close loans more efficiently and with fewer errors,” said Amber Horton, operations manager at Cornerstone Mortgage. “Closers, title companies and settlement agents can easily share and review fees which has allowed

Accurate Group Launches New Interface for its Archer Platform

release of a new responsive interface for its appraisal management and title services platform. The Accurate Archer managed services platform delivers a level of transparency that is unprecedented in the real estate finance industry. The platform gives banks, mortgage lenders and credit unions on-demand access to analytics and insight into revision rates, turnaround time, quality control and compliance. Smart process flow technology and built-in compliance rules accelerate turnaround times while also ensuring regulatory compliance. The interface also facilitates delivery of title and appraisal information using the most current MISMO-based datasets.

NationalMortgageProfessional.com

Mortgage Builder Adds New Module for Lenders and Title Companies

us to significantly reduce the time to close loans and deliver more accurate closing disclosures to borrowers.” “The release of Closing Conduit continues to reinforce the investment Altisource is making in Mortgage Builder’s products and services,” said Lawrence E. Alston, general manager at Mortgage Builder. “We have received great feedback from our beta customers that Closing Conduit is helping them close more loans because they can close them faster and more accurately.” “The Closing Conduit within

Mortgage Builder significantly helped streamline the collaboration process between the Closing Department and attorneys,” said Tony Fox, director of integrations and technology for 1st Priority Mortgage. “The solution provides us with a fast, efficient and userfriendly means of interfacing with our external business partners.”

What Do

Donald Trump and

Madonna Have in Common? BY CASEY CUNNINGHAM

Photo credit: Andrew H. Walker

ho comes to mind when I say, “The Material Girl?” What about “You’re fired!” If you guessed Madonna and Donald Trump, then congratulations, you are familiar with two of the best self-promoters in the world. How did these people become so well known? They have created a personal brand and are never afraid to promote themselves. Now, let’s say you are a mortgage professional looking to increase your production. You

Photo credit: Chris Jackson

might feel worlds different from Madonna and Donald Trump, but the key to success is the same: Create your personal brand and promote it. In an industry as competitive as the mortgage industry it is important to stand out from the crowd. Your personal brand does that by establishing your connection to your audience. Like “The Material Girl,” your audience will have something that comes to mind when they think of you. The first step to creating your personal brand is to determine your audi-

ence. Most mortgage professionals target similar referral sources such as real estate agents and builders. I knew a mortgage professional whose niche market was first-time homebuyers because not only was he young, but also had a baby face. He was actually late-20s, but because he looked so young, many older clients were apprehensive to work with him. He used this to his advantage, however, and began building his brand with younger, firsttime homebuyers and became very successful.

Consider that your audience establishes your field of expertise. Branding yourself as an expert will make your clients and referral sources want to come to you and only you when they have questions. Remember, you can be an expert to more than one audience, however, when you try to be all things to all people, you may not be memorable to any members of your audience. It is more effective to pick one or two audiences and dominate those. Once you have chosen your target

audience, your challenge becomes standing out from the pack. It seems almost too simple, but the best way to stand out is to be yourself and most importantly, be personable. Understandably so, sometimes the hardest part of standing out isn’t being yourself, it is communicating what makes you different to other people. To better communicate your personal brand to a prospect, create your personal branding statement as well as your unique value proposition. Combining these two components will not only communicate who you are, but will make you memorable, ultimately leading to a top-of-mind awareness for your target audience. Let’s start with the first step, creating your personal branding statement. Your goal is to elicit a reaction or response that says, “Tell me more.” This is your six-second introduction, so it should be simple, brief, and should grab your attention. It should answer two questions: l What do you do? l How good are you? For example, when someone asks you, “What do you do?” Don’t just say, “I’m a loan officer.” That response is boring and forgettable. Create excitement and interest when answering who you are because you are not boring or forgettable! Say something like “I’m a mortgage super genius!” or “I’m the official sponsor of the American Dream.” One of my favorites, which always fosters curiosity is “I sell money!” All of these statements are engaging and yes, may be a bit corny, so put your own spin on it! Remember, you are not just a loan officer; you are the head of marketing for the brand called “you.” Tom Peters, author of the article, “A Brand Called You,” explains it perfectly, “Regardless of age, regardless of position, regardless of the business we happen to be in, all of us need to understand the importance of branding. We are CEOs of our own companies: Me Inc. To be in business today, our most important job is to be head marketer for the brand call YOU.” Once you have decided how you are going to engage your prospect, you can focus on how you are going to reel them in—your unique value proposition. Your unique value proposition is your 30-second elevator speech. Now, we all have heard what an “elevator speech” is and you might even have one prepared. However, I challenge you to ask yourself how effective it is. Your unique value proposition must be more than something you say to convince someone to do business with you. It’s what the customer will experience as a result of doing business with you. Like any marketing tactic, you will not sell much if you are focusing only what you offer, you must explain how it will benefit the customer. Also remember, you may need multiple value propositions for each target

audience. For example, there will be different benefits for a referral source who sends you business than a customer who uses your services. To create an effective unique value proposition, using a referral source as an example, imagine a scenario where a referral source had an ideal experience with you. List the exact results they achieved by working with you, for example, a timely closing, a happy customer, etc. Then think about what other results happened, for example, reduced stress, enhanced reputation, etc. Lastly, ask, “What would the cost have been if they had NOT done business with you?” Examples include loss of future referrals, loss of commission, etc. Once you have identified the bene-

fits one will receive by working with you and how one could be hindered by not working with you, put them into a few sentences to create your unique value proposition. For example, “Doing business with me means you will get more business and make more money. Your closings will close on time, every time. Your customers will share their experience with everyone, become your sales force and drive endless referrals. And most important, you will receive your hard earned commission on time.” After hearing this, how could you not want to work with this person? He is confident, he will help your customers and more importantly, he will make you more money. By combining your personal brand-

One of the things that is great about Assurance is that they are more responsive to the needs of the loan officer, like getting exceptions made and getting loans closed quickly. A lot of underwriters at other lenders are always looking for ways to say no. Our underwriters look for ways to get the loan closed, and our processors make sure we close on time.

ing statement and unique value proposition, you will be able to get your target’s attention then ultimately, get their business. Your personal brand is all about learning to use what you already have and turning it into your moneymaker. All you need is to be yourself! Just ask Donald Trump and Madonna! Casey Cunningham is CEO of XINNIX, having co-founded the company in 2002. She has more than 26 years of diverse retail mortgage sales and leadership experience, beginning her career as a loan officer and quickly became a top producer with an annualized production of $60 million and 500 closed loans.

I love working for Assurance and I have thrived here. With the support from management, experienced employees, marketing support and continuing education, I quickly became a top producer. The camaraderie is by far the best I have ever experienced. Courtney Arceneaux Loan Officer Houma, LA | NMLS# 829307

Damian Cook Branch Manager Atlanta, GA | NMLS# 203938

CLOSE MORE LOANS

ON TIME. EVERY TIME.

Our compensation plans are what set us apart from other companies. There is flexibility and manager input on the structuring of the branch compensation plan and a great balance between pay and the rates we offer to our borrowers. Willie Tucker Branch Manager Madison, AL | NMLS# 174340

I’ve been here 7 months after 20 years in the business. I’m thrilled to be here. We have a very good product line. Our pricing is exceptional. I like the fact we have our own marketing department so we can spend more time getting loans. The support has been outstanding. Brent Edwards Branch Manager Metairie, LA | NMLS# 131432

Ready to dramatically increase your income? We’re hiring branch managers and loan originators throughout the South. Join our team and we’ll equip you to succeed. Best-in-class processing, underwriting and closing support—with a commitment to always close loans on time* Excellent compensation, great rates and competitive closing costs

Ready-to-use marketing materials and customized webpages for originators and branch managers Centralized compliance team

Company-paid licensing, training and education Direct Ginnie Mae issuer and Fannie Mae and Freddie Mac seller and servicer approved, with minimum credit overlays

RESIDENTIAL MORTGAGE LENDER WITH OFFICES THROUGHOUT THE SOUTHERN UNITED STATES * Based on reasonable and customarily expected timelines of 25-30 days. Results are subject to situations directly under lender control and not to include third-party instances that may delay the closing as they pertain to title and abstract, appraisal completion/conditions and buyer/seller clearing of lender conditions necessary to close.

Ready to start closing more loans?

Contact Paul Peters, CMB at (225) 239-7948 or email PPeters@LendTheWay.com today. www.LendTheWay.com

EQUAL HOUSING LENDER NMLS# 70876

Simplify Your Marketing Nowadays, the mortgage industry is fiercely competitive! Marketing your business doesn’t have to be difficult. Look back at the lessons you learned over the past year and make the necessary changes to simplify your marketing in 2016. Tips to keep in mind when you are marketing that are simple, clear and easy to execute: 1. Create a marketing plan: Set time aside to work on growing your business. The most profitable lenders are not always those who have the greatest return-on-investment (ROI) per customer, they are the ones with a marketing plan. 2. Find your audience: Create your own personal market by selecting the customers you want to work with. You can pre-screen your customer list in many different ways. Find the customer that is easy to work with and is the longest lasting. By targeting a specific audience, you simplify your message. 3. Diversify your marketing channels (multi-channel marketing): You have to target the same customer several different ways in order to build credibility and attract them to your business. Create a multi-channel marketing campaign that incorporates both an online and an offline direct marketing approach and you’ll increase your results. 4. Content: You need content that is going to get your prospect to pick up their phone and call you. Personalize the message you send to your customer. 5. Track, track and track: There is nothing worse than spending money on a marketing campaign and not knowing if it worked out or not. What is worse than continuing to spend money on campaigns that did not yield any results … nothing! 38

Commit to a few minutes each day to educate yourself on the best performing campaigns. The mortgage industry is back and growing stronger each day. If you are not having a strong start to 2016, you must take a look at your own marketing efforts and how you can make your campaigns perform better.

new to market continued from page 35

In addition, lenders will benefit from the platform’s new responsive interface design, which will enable them to quickly and easily submit, monitor and track property appraisal and title requests nationwide from any mobile device or Web browser. A version of the new interface designed specifically for appraisers will also be rolled out to Accurate Group’s network of real estate appraisers. “Real estate lending and servicing is a complex business that requires accurate, timely property valuations and title information as well as advanced knowledge of related regulatory compliance guidelines. Our latest release of the Accurate Archer managed services platform is designed to help our clients gain on-demand insight into critical information across all aspects of the appraisal management and title services function – from order generation to delivery cycles to trends over time,” said Mike Cullen, chief information officer for Accurate Group. “Accurate Group is leading the market in delivering nextgeneration technology that enables lenders, servicers and appraisers to transform how they manage real estate appraisals and title information, resulting in improved cycle times, better compliance, lower costs per loan and a more profitable business.”

CoesterVMS Announces Partnership With Veros Real Estate Solutions

TagQuest client spotlight Each month, we like to talk with our clients and find out how their campaigns are going. Here is what we heard from one of our mortgage brokers, John F. in Ohio. Product used: Direct mail targeting VA refinance l 5,000 direct mail pieces l 45 inbound calls to date l 10 applications to date Highlights of the campaign that work well for John … “Being able to customizing the filters to fit my programs worked better than the live transfers I have tried in the past where filters are set kind of low and can’t be changed.” Highlights that could appeal to other loan officers or offices … “Calls are more qualified by targeting a specific demographic and more of the prospects seem like they are ready to move quicker.” Based in Medford, Ore., TagQuest Inc. is a full-service marketing firm developed throughout the ever-changing mortgage industry. Utilizing industry knowledge, marketing expertise, and technology we implement any or all aspects of your marketing and/or advertising campaigns. With a proven track record, more than 10 years in business, and decades of experience TagQuest knows what it takes to produce unprecedented results in today’s fast-paced mortgage environment. For more information, call (888) 717-8980 or visit www.tagquest.com.

IMAGINE • INNOVATE • SUCCEED SPONSORED EDITORIAL

CoesterVMS has announced that it is integrating with Veros Real Estate Solutions to provide CoesterVMS customers with enhanced Uniform Collateral Data Portal (UCDP) responses, which will result in faster review times. CoesterVMS users will also have access to the FHA’s new Electronic Appraisal Delivery (EAD) portal, which will be required for all FHA-approved mortgagees on or after June 27, 2016. Providing this access early allows lenders to be compliant ahead of the required deadline. “Working with Veros allows us to provide our customers with the latest access to valuation technology so they can better serve their customers and remain compliant,” said Brian Coester, CEO of CoesterVMS. “We welcome the opportunity to partner with such a dominant provider in the valuations arena.” “Veros is pleased to welcome CoesterVMS to the family of technology providers using our proprietary PATHWAY system-to-system connection to help their customers deliver electronic

appraisal data to Freddie Mac, Fannie Mae, FHA and other mortgage stakeholders in the loan lifecycle,” said David Rasmussen, senior vice president of operations for Veros. “By providing strong portal delivery services, we are working together to enhance mortgage efficiency and loan value quality.”

Capsilon Launches DocVelocity Collaborative Closing Center

Capsilon Corporation has announced that the newest version of its flagship product, Capsilon DocVelocity, has introduced the Capsilon DocVelocity Collaborative Closing Center, a secure electronic collaboration workspace that speeds the closing process by enabling lenders and their settlement partners to review, validate and finalize the fee data required to prepare compliant Closing Disclosures as required under TRID, and to seamlessly exchange and validate settlement documents. In addition, the Collaborative Closing Center provides lenders with automated tolerance checks to ensure TRID compliance. “Under TRID, lenders must take full responsibility for the Loan Estimate and Closing Disclosure, and effective, efficient communication with settlement partners is critical for a successful, timely closing,” said Sanjeev Malaney, chief executive officer of Capsilon Corporation. “The new Capsilon DocVelocity Collaborative Closing Center gives lenders the technology they need to collaborate with settlement partners on fees and to streamline the entire closing disclosure and settlement processes. This new version of DocVelocity delivers the automation lenders need to not only ensure compliance with TRID, but to ensure timely, accurate closings that increase borrower satisfaction.” The Capsilon DocVelocity Collaborative Closing Center, part of the new version of Capsilon DocVelocity, will be available to customers later this month for an additional subscription fee. Customers should contact their Capsilon account manager for complete details.

FHA Issues Updated MAP Guide

The Federal Housing Administration (FHA) has published a new consolidated handbook to guide lenders on underwriting all FHA-insured multifamily

Platinum Data Solutions has launched RS3, an automated appraisal compliance review tool that evaluates appraisals for compliance with Uniform Standards of Professional Appraisal Practice (USPAP) Standard 3 guidelines. Several states have adopted regulations

ing of an appraisal report. RS3 is built on Platinum Data’s RealView appraisal quality platform. It can review an appraisal report for compliance with USPAP’s Standard 3 and relay its findings in a matter of seconds. The RS3 report is designed to help users immediately identify the most important findings. It uses visual cues like color and object placement to differentiate findings such as compliance violations, inconsistencies, errors and outliers. “A lot of AMCs are using compliance desk reviews, which generally cost less than a standard review, but can still run $75 to $150, and take anywhere from 48 hours to four days,” said Chris Brownlee, chief appraiser for Property

Interlink. “Platinum’s RS3 allows us to be a lot faster, more efficient and more cost effective than AMCs who are handling these reviews manually.” Huff continued, “The RealView platform is making appraisal quality and compliance accessible for the entire industry. Lenders, AMCs and appraisers can all benefit from using automation to impart speed, accuracy and consistency to rote and tedious tasks. However, different parties have different needs for the level of analytics needed to evaluate an appraisal. RS3 was designed for AMCs that want to conduct compliant appraisal reviews, and it’s priced accordingly.” continued on page 77

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Platinum Data Launches New Appraisal Compliance Review Tool

that require appraisal management companies (AMCs) to review a percentage or portion of the appraisals they transact in compliance with USPAP’s Standard 3. “RS3 helps AMCs comply with state appraisal review regulations in moments, and for a fraction of the price that they’d pay to conduct these reviews manually,” said Phil Huff, Platinum Data’s CEO. USPAP represents the generally accepted standards for professional appraisal practice in North America. USPAP’s Standard 3 dictates the accepted process for determining how well a given appraisal report complies with USPAP Standards 1 and 2, which govern the development and report-

NationalMortgageProfessional.com

housing construction and rehabilitation transactions. FHA’s new MAP Guide offers a new operating manual for multifamily underwriting through the Multifamily Accelerated Processing program. FHA’s new Multifamily MAP Guide is intended to cut the time required to approve loan applications and to assure consistent application of program requirements and credit standards across all HUD processing offices. While all provisions of this new MAP Guide will become effective for all applications for FHA multifamily mortgage insurance received after May 28, 2016, FHA has the authority to approve transactions that incorporate the new policies immediately for projects with Firm Commitments issued or reissued after date of publication. “Today, I’m proud to release our new and improved ‘owner’s manual’ for FHA’s Multifamily housing programs that we hope will make it easier for our partners to do business with us,” said Ed Golding Jr., HUD’s Principal Deputy Assistant Secretary for HUD’s Office of Housing. “This new guide is the product of a substantial feedback we’ve received from those who will actually be using our programs to finance the production and preservation of FHAinsured multifamily housing.” There are approximately 90 MAP lenders originating FHA-insured multifamily housing developments. Updating and clarifying the MAP guide supports an estimated $11 billion of FHA insured lending each year. In addition, the updated MAP Guide reflects significant progress over the past five years to improve processing times and to better align FHA multifamily transactions with industry standards and practices, especially those supported by the Low-Income Housing Tax Credit (LIHTC) Program. On Feb. 27, 2015, FHA released a draft MAP guide and sought public feedback. Revisions incorporated in the new MAP Guide can be categorized into four main areas: Technical corrections and edits based on operational experience; integration of previously published policy (e.g. Mortgagee Letters, Housing Notices, Memos, and less formal guidance) issued since 2011; incorporation of the significant organizational and operational business model changes associated with the Multifamily for Tomorrow transformation initiative; and policy revisions.

heard street ON THE

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

Castle & Cooke Mortgage cers up for success at every step of the NAMB+ Announces Opens Two New Branches process.” Partnership With Morf Godde will lead the company’s Media

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

NationalMortgageProfessional.com

Castle & Cooke Mortgage LLC has announced the opening of two new branches in Lancaster, Calif. and Crown Point, Ind. With an aggressive expansion, acquisition and recruitment agenda, the company is pleased to join forces with existing industry leaders in each region to provide Castle & Cooke Mortgage’s suite of premium lending services to a greater number of potential borrowers. Michelle Bissonnette will open the company’s Crown Point, Ind. branch, and Gabriella Godde will lead the Lancaster, Calif. branch. These grand openings mark the first of the 15-20 new branches Castle & Cooke Mortgage plans to open in 2016. With three decades of experience, from processing to origination to mentoring, Bissonnette is as seasoned in operations as she is knowledgeable about what it takes to offer superior client services in a competitive lending market. As branch manager, Bissonnette projects a year of tremendous growth. Her accomplished team will leverage their expertise with the leading-edge lending solutions now available to them at Castle & Cooke Mortgage in order to meet clients’ lending needs at a rate that was never before possible. “In competitive markets branding is an important distinguishing factor,” said Bissonnette. “The fact that Castle & Cooke Mortgage offers one-touch underwriting and is committed to maintaining 24-hour turn times is a big part of the reason I can maintain strong partnerships with realtors and builders who also want to offer the highest level of efficiency and customer service. Equally, the level of corporate support we receive, coupled with quick close times and advanced technology, makes it easier for me to build an exceptional team because we are setting loan offi-

expansion north of Los Angeles in Lancaster, Kern County and the whole of Antelope Valley as branch manager in Lancaster. Godde comes to the company with nearly two decades of loan origination experience and significant expertise with California Homebuyer’s Downpayment Assistance Program (CHDAP) and Mortgage Credit Certification for homebuyers who qualify for tax credits. Her expertise combines with Castle & Cooke Mortgage’s comprehensive suite of lending solutions, positioning Godde to put an ever-greater number of first-time buyers on the path to homeownership. “Castle & Cooke Mortgage’s growth strategy provides that the company will extend its lending footprint by partnering with established industry professionals in core housing markets,” said Adam Thorpe, president and chief operating officer for Castle & Cooke Mortgage. “We are committed to hiring the brightest leaders in the industry and then giving them the tools to do what they do best. The new branches in Indiana and California are prime examples of the types of high-quality branches and teams that our company will add as we expand our footprint nationally. Michelle Bissonnette and Gabriella Godde and their teams fully embrace our company’s core values of honesty, integrity, transparency and hard work. Additionally, Michelle and Gabriella are leaders in their respective markets, and they treat their clients impeccably with a reputation for delivering unparalleled customer service. We are pleased that such talented industry professionals continue to see the advantage of working at Castle & Cooke Mortgage.”

NAMB+, the for-profit provider of discounted products and services to members of NAMB—The Association of Mortgage Professionals, has announced its latest partnership with Morf Media Inc., a provider of one to one customized online training to mobile networks, partners and customers on a number of platforms, including smartphones and tablets. Morf Media is the developer of Morf Learning and the Morf Playbook. Morf Playbook delivers interactive threeminute courses and a virtual coach, which empowers professionals to train, reference policy details and get reminders and compliance notifications on-the-go. Morf Playbook offers secure centralized reporting for managing governance, regulatory and compliance training on a sustained basis. “NAMB members will truly benefit from the many convenient offerings from Morf Media,” said NAMB+ President Nathan S. Pierce. “Morf Media brings ease and convenience to the education process in our fast-paced world. Our members will be able to keep compliant via Morf Media’s educational offerings, any time, any place, in a mobile capacity.” NAMB+ brings to its members an array of Endorsed Providers aligned with NAMB to aid mortgage professionals in gaining a competitive advantage in today’s business world. NAMB+ brings everything from compliance, credit reports, lead generation, phone services, social media and custom canvas prints to its members as part of the program.

“Morf Media is proud to partner with NAMB+, an association committed to promoting the highest degree of professionalism and ethical standards for its members,” said Ginger Bell, SVP Morf Media. “We look forward to working together to provide mortgage professionals with Morf Playbook professional education opportunities and training that allows members to perform at their highest potential.”

PRMI Continues Expansion With Opening of 14th Utah Branch

Primary Residential Mortgage Inc. (PRMI) continues to grow its footprint in the state of Utah by announcing the opening of a new branch located in Orem, Utah under the management of Jim Hoggan, Christopher Jensen and Julie Crow. The addition of this branch makes it the 14th location in Utah. “We are thrilled to be opening up this branch in our own backyard,” said Dave Zitting, president and CEO of PRMI. “This management team has more than 60 years of experience between them, they are experts in our industry and we are pleased they have joined our PRMI team to help our neighbors achieve homeownership!” PRMI plans to continue expanding its presence nationwide with a goal of 15 new branch openings over the next three months.

Default Servicing Technologies Rebrands as Exceleras

Default Servicing Technologies LLC, creators of a suite of critical software for banks, servicers, subservicers, capital market groups, and other mortgage and real estate industry professionals, has changed its name to Exceleras to better reflect the nature of its business

cure email exchanges containing NPI is enforced this fall,” said NAMB’s Vice Chair of Government Affairs Fred Kreger. “NAMB members will benefit greatly from the education and guidance offered by InfoSight through this partnership. Not only will NAMB members learn about email security solutions, but they’ll gain a greater understanding of information security best practices which will serve to improve their brokerage’s overall security posture.” InfoSight is offering NAMB members guidance on e-mail encryption solutions, network security monitoring and management, and cyber security awareness training for brokerages and their staff. NAMB members can also attend

free educational Webinars and annual Anti-Money Laundering (AML) training, presented by InfoSight, to help enable brokerages to ensure the safety of customer information in transit, to protect their own network systems from breach, and to ensure compliance with the CFPB rules. “Implementing a layered security model can be relatively inexpensive and will greatly improve network security,” said InfoSight President and CEO Tom Garcia. “If done properly, security awareness training can also greatly improve protection. Any weak link in physical, logical or social information security processes can expose people to continued on page 46

YOUR

GO-TO LENDER FOR

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866-453-2400 InfoSight Inc., a provider of cyber security, regulatory compliance and security awareness training, has partnered with NAMB—The Association of Mortgage Professionals to help mortgage brokers safeguard the personal information of their customers and ensure compliance with new regulations imposed by the Consumer Financial Protection Bureau (CFPB). The strategic partnership was established in response to a new mortgage disclosure rule, mandated by the CFPB, making it mandatory for creditors and

© Copyright 2007-2016 Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200A, Anaheim, CA 92806. 800-561-4567. NMLS ID 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access website: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745. CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File 413 0904. CO: Check license status of your mortgage loan originator at www.dora.state.co.us/real-estate/index.htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. KS: Supervised Loan License SL.0000313. KY: Mortgage Loan Company License MC21112. MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law. MS: Licensed by the Mississippi Department of Banking and Consumer Finance. Mortgage Lender License 2600. MO: Missouri Company Registration 14-1746-A. In-State Office: Missouri Residential Mortgage Loan Broker License 14-1746-A1. 251 SW Noel, Lees Summit, MO 64063. NV: Mortgage Broker License 4068 (Residential Mortgage Lending). 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 Certificate of Registration MB.804213.000; Ohio Mortgage Loan Act Certificate of Registration SM.501517.000. OR: Mortgage Lender License ML4886. 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. NMLS ID 2600 (www.nmlsconsumeraccess.org). WA: Consumer Loan License CL2600. Also licensed in AL, AR, CT, DE, DC, FL, ID, IN, IA, LA, ME, MD, MI, MT, NM, NC, OK, SC, TN, TX, UT, WV, WI and WY. NOTICE: All loans 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 government agency. All rights reserved.

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NAMB Partners With InfoSight on Cyber Security Solutions

their agents to safeguard non-public personal information (NPI) through the use of secure e-mail exchanges. The rule, which became effective Oct. 3, 2015, results from organized cybercrime groups who find mortgage brokerages an attractive target. Mortgage companies, big and small, must take extra care with information-sharing practices that can put their customer’s personal and financial information at risk for theft. Should a cyber-criminal gain access to mortgage applications by compromising network controls or intercepting email, they could use the information, such as W-2 forms and tax returns, to perpetrate identity theft. “We want our members to get ahead before the CFPB rule prohibiting unse-

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and the industry sectors it serves. “For many years, Default Servicing Technologies has played a crucial role in helping its clients deal with valuing and selling real estate,” said Michael Harris, an industry veteran who has been consulting with the company throughout the rebranding process. “The company is unmatched in its ability to meet these demands, but in doing so it has gained valuable experience that has allowed the company to create software that meets a broader set of industry needs. Starting now, the company will meet those needs as Exceleras.” Today, the company’s software-as-aservice (SaaS) solutions include DispoSolutions Real Estate-Owned (REO), Short Sale, Valuation, and Offer Management Platform and the ValueSolutions enterprise collateral valuation management technology. The systems can be used together or a la carte. Together, these tools allow Exceleras clients to manage assets that are both pre-foreclosure and post-foreclosure, as well as the process of providing due diligence solutions for portfolio acquisition such as obtaining valuations and inspections for real estate assets. The firm’s systems assist in creating transparency, capturing communication and documents, and providing a “pre-packaged” workflow of automated tasks and notices for default and short sale processes in a fully compliant manner. “Automation allows our clients to accelerate the pace of business, which is vital to success,” said Amy Bergseth, vice president of Operations for Exceleras. “At the same time, operating in a highly regulated environment requires every technology buyer to seek out excellent partners, especially when it comes to mission critical technology. Expanding beyond the default sector required us to rebrand. Exceleras is now the most excellent solution for accelerating your business with technology.”

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The Crystal Barrier Rears Its Ugly Head By Laura Burke, MBA, MS, MIS, CFE, EA The crystal barrier … the old glass ceiling reemerges its ugly head 30 years after the defeat of the Galactic Empire. The galaxy faces a new threat from the evil Kylo Ren and the First Order. With the return of Star Wars and Princess Leia, one would think the glass ceiling would also be a memory, but today, it’s still all too real for many women and minorities. So what exactly is the glass ceiling … an unofficial acknowledged barrier to advancement that holds women and minorities back, regardless of their qualifications, achievements or education. The barrier is invisible, transparent in nature, thus called “The Glass Ceiling.” The barrier can be strong, sometimes enforced by a gate keeper, and other times, self-imposed. As we take a historical look at the mortgage banking and broker industry, they were believed at one time to be a male-dominated, good old boys club. Over the course of time, the banking

industry took on a revolutionary vision and embraced the leadership of strong, intellectual women at the helm of many of their large banking businesses. Nominated as one of the most powerful woman in banking is Karen Peetz of BNY Mellon. As president of the world’s largest custody bank, a role she assumed in during 2013, Peetz oversees global and regional client management, treasury services, growth initiatives and innovation, as well as the most complex of regulatory issues. As an executive sponsor of Impact, BNY Mellon’s employee resource group is focused on the recruitment, development and retention of multi-cultural talent. Another powerful business woman is Marianne Lake, chief financial officer of JPMorgan Chase (2013). Her main duties include overseeing the company’s financial matters, its investor relations and its capital strategy. Lake is the highest-ranking woman at JPMorgan Chase and has been actively engaged in helping other women also get ahead. Last year, she co-founded Women on the Move, a program within the company that aims to help remove common barriers that prevent women from moving

up the ladder. Pamela Joseph, vice chairman of Payment Services for U.S. Bancorp, also started a mentoring program in 2010 for leaders in U.S. Bancorp’s Payment Services Division, which has generated some crucial insights. Most of the women involved in the mentoring program had not received any leadership coaching or development during their career. Many women who rose through the ranks struggled to let go of their past detail work they were initially rewarded for. The leadership training that Joseph championed helped women identify the types of behaviors that could be holding them back so they can assume more leadership roles, according to American Banker’s “Women in Banking” article on the most “Powerful Women in Banking.” Joseph says she notices some differences in how men and women approach their careers. For example, she sees a lot of women asking for additional training as a way to get more comfortable with moving up. Traditionally, mortgage brokers were not so aggressive in their thinking and stayed on a predominately male-domi-

nated career path. Until more recently, we have seen serious changes as women start to enhance the growth and resurgence of the broker industry. Today’s industry professionals may have started out in a “man’s world,” but are claiming equality for women and minorities as leading brokers, and company CEOs. In addition, over the past 15 years, there has been a surge of femaleowned title companies, real estate agencies, and other mortgage-related industries, which continues rise. As research demonstrates, there are effects caused by the barrier of the glass ceiling. Some common effects caused by the barrier are: l Gender pay gaps l Risk mismanagement l Forgone promotions l Limited trust and respect l Inequality l Gender bias l Misperceptions Perceived benefits of maintaining The Glass Ceiling effect include: l Qualified individuals who are only chosen for advancement (male species)

l Keeping salaries lower without actually stating facts l Keeping like-minded good old boys together l Inner circle of trust

Potential drawbacks l Limiting diversity in higher corporate hierarchy and leadership l Reducing the scope of breadth of knowledge l Creating ill will l Enhancing mobility to other companies, organizations and fields l Causing good candidates to move elsewhere l Creating a secret society l Lowering incomes to single women raising families, thus causing undue hardship on children and other family members The following are 10 steps that can help eliminate The Glass Ceiling. 1. Be cognizant of who potential gatekeepers may be: Knowing who the gatekeeper is may make the difference in your success. By knowing who might want to hold you back and why will help guide you to overcome this person’s barrier. What if the gatekeeper is selfimposed? Are you your worst enemy, get out of your way and move past your own fears and selfimposed limitations … you can do it!

4. Promote higher education and offer an outreach program of higher education to employee’s spouses: As a company, promote the benefit of higher education to your employees. Offer incentives for the return to school, obtaining higher degrees and adding certificate coursework to their resumes. Institute a program for spouse’s higher education. This will help your employee’s home base increase their education as well,

6. Promote from within when possible and groom employees for promotions: By offering promotions from within, you allow current employees of any gender or minority the best chance to move up. As an employee watch for opportunities to advance and act upon them. Follow the proper channels for consideration for advancement in your career. 7. Foster retention: Through retention, you give current employees the chance to grow and increase their opportunity to share new skills with the company. As an employee with proven longevity, you will be more valuable than training a new employee. 8. Sponsor training on different learning styles: By providing training on different thinking processes and learning styles, allows individuals to shine as who they are. By accepting cultural and gender differences, you will acquire an open mind to individuals’ unique qualities and talents that will quantify your leaders. As the employee, take all the training you can. One can never know where new and additional training will lead to at some point in your career path. 9. Provide an open forum for the sharing of ideas and networking: As the employer willing to listen to all employee’s ideas and comments at all levels, it builds confidence in your employees. As they feel they have a voice and thoughts that matter, they become stronger and better employees. They provide insight that may only be gotten from that workforce level which might prove to be invaluable information. As an employee, be willing to share your thoughts, concerns and ideas with those leading the open forum. Networking is also a creator of shared ideas. 10. Publish an annual report depicting accountability for reducing the ceiling barrier and strengthening minority and gender roles: By demonstrating accountability to your own programs and proving success of promoting from within will foster employee trust and respect for the system.

As the employee, be happy for the success of others, your turn will come. Demonstrating negativity will only dampen your chance for future success. Isn’t it time we shatter this ceiling and make way for all stars to shine through. Regardless of your industry, or career this needs to happen … now, today, tomorrow, next month, this year! Let 2016 be the year you break through and shine! Former United States Secretary of State Madeline Albright once said, “There is a special hell for women who don’t help other women.” This comment was originally made at a keynote speech with the WNBA’s All-Decade Team in 2006, and more recently, in response to the political polls for former first lady, Hilary Clinton, currently running for the democratic presidential choice for the presidential election of 2016. Please comment, and share your experiences, battles and stories of “How The Glass Ceiling has affected your career.” In today’s marketplace, it’s hard to imagine that we are still feeling the effects of the old adage of “The Glass Ceiling.” Have you ever been held back for what you felt was due to gen-

der or minority status? Please share your stories and comments with me at LauraLynnBurke@gmail.com. Our next article will discuss Emotional Intelligence, which controls 58 percent of the factors of your success. We will also disclose the “Four Habits of Emotionally Intelligent” people. Please feel free to share your ideas, comments and reflections about Emotional Intelligence with me as well. You own it … it‘ll be your comments I share with our readers as you take the lead. Take the lead! Let’s grow together! Laura Burke, MBA, MS, MIS, CFE, EA is an author, and trainer with 20-plus years of experience in the mortgage arena. She has been in the trenches as a loan officer, originating more than $35 million to becoming CEO of her own mortgage brokerage company. Laura specializes in federal tax law, compliance, fraud, data management, security, leadership, training and marketing. She was recently one of six members chosen for the IRS IRPAC Advisory Committee, where she will serve a three-year term. She may be reached by email at LauraLynnBurke@gmail.com. 43

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3. Institute and monitor mentorship programs: If you are a company or organization, start a mentorship program and monitor it for activity, while promoting the success of the program. As an individual, join a mentor program, either as a mentor or mentee. Don’t set expectations for immediate results, be prepared to wait for progress over a timetable. Find out what that timetable may look like for your growth plan.

5. Advocate grievance committees that are accessed anonymously and electronically: Have a grievance committee that makes it easy for those being stifled and/or held back have somewhere to reach out to when needed. As an individual, report grievances, both professionally and accurately.

“Over the course of time, the banking industry took on a revolutionary vision and embraced the leadership of strong, intellectual women at the helm of many of their large banking businesses.”

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2. Create an open forum for discussion leading to greater growth and potential: As a company, you can help others reach their goals by implementing an open forum for discussing leadership qualities, how to move ahead in the company, what is expected of employees moving up. As an employee, participate in forums building your strengths and increasing leadership skills.

even if by offering a seminar to start with. If you are an individual, take advantage of higher education being offered by your employer.

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Industry Updates: February 2016 By Gavin T. Ales CFPB Letter to MBA Regarding "Know Before You Owe" Implementation On Dec. 29, 2015, the Consumer Financial Protection Bureau (CFPB) responded to a written request by the Mortgage Bankers Association (MBA) for additional clarity regarding lingering misperceptions and technical ambiguities surrounding, and a process for ongoing written regulatory clarifications governing, the TILA-RESPA Integrated Disclosure Rule (TRID). The CFPB’s letter made the following key points: 1. Despite best efforts, the CFPB recognizes that, inevitably, there will be inadvertent errors in the early days of implementation of the TRID Rule. Accordingly, the CFPB’s initial examinations for compliance with the TRID Rule will be “corrective and diagnostic, rather than punitive.” 2. The Federal Housing Finance Agency (FHFA), the government-sponsored enterprises (GSEs), and the Federal Housing Administration (FHA) have made clear that they will not conduct routine post-purchase loan file reviews for technical compliance and do not intend to exercise contractual remedies, including re-purchase, for compliance with the TRID Rule where a lender is making good faith efforts to comply. 3. Regarding cure provisions for violations of the Rule, the CFPB advised the MBA that the TRID Rule provides for the issuance of a corrected closing disclosure, even after closing. A corrected closing disclosure could be used to correct non-numerical clerical errors or as a component of curing any violations of the monetary tolerance limits, if applicable.

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

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Further, the CFPB added that a corrected closing disclosure could, in many cases, forestall any private liability for statutory and class action damages under TILA. Additionally, the CFPB reminded the MBA that the TILA provisions providing for the correction of errors will continue to apply to integrated disclosures: “TILA has long permitted creditors to cure violations, provided the creditor notifies the borrower of the error and makes appropriate adjustments to the account before the creditor receives notice of the violation from the borrower. 15 U.S.C. 1640(b).” Oregon Department of Consumer and Business Services Creates New Division of Financial Regulation The Oregon Department of Consumer and Business Services announced on Jan. 7, 2016 that two of its divisions—the Division of Finance and Corporate Securities and the Insurance Division—have been merged into a new division named the Division of Financial Regulation, which became effective on Jan. 1, 2016. The Division of Financial Regulation will continue to provide all the services to consumers and businesses previously provided by the two divisions, protecting consumers and regulating insurance, depository institutions, trust companies, securities, and consumer financial products and services. CFPB Releases Rural and Underserved Areas Tool The CFPB recently released its new Rural and Underserved Areas Tool to help creditors determine which properties are located in "rural" or "underserved" areas as defined in 12 CFR 1026.35(b)(2)(iv)(A) and (B). Creditors may rely on this Tool to provide a safe harbor determination that a property is located in a rural or underserved area. However, as the CFPB indicates on its Web site, the Tool is not applicable to the exemption from the §1026.35(c)(4)requirement for an additional appraisal which is based on "rural county" and not "rural area." The CFPB publishes a list of counties that are entirely rural to facilitate compliance with the exemption in § 1026.35(c)(4)(vii)(H). Please visit the CFPB’s Web site to view the new CFPB Rural and Underserved Areas Tool. Gavin T. Ales is chief compliance officer with Torrance, Calif.-based DocMagic Inc. He may be reached by phone at (800) 649-1362, ext. 6446 or e-mail Gavin@DocMagic.com.

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heard on the street continued from page 41

unnecessary risk. It can take years to recover from identify theft but only minutes to train employees about how to safeguard borrower information.”

CIS Celebrates Milestone Anniversary CIS has announced that in 2016, the company will celebrate their 30th year in business. CIS is a national consumer reporting agency founded in 1986 in Sparta, N.J. CIS began serving the local mortgage industry with consumer credit reports. “In 1986, credit was merged manually from the three credit bureaus and phone investigations were completed on each trade-line … a world-away from the instant tri-merge credit reports CIS delivers today,” said Nancy Fedich, CIS CEO. “We developed a culture of being the market leader in releasing new products and reaching new industries. We began by offering employment reports and property information to mortgage clients using CIS credit, and have never stopped continually improving our products, service & platforms.” In 2001, CIS opened an operations center in Portland, Ore., expanding along the West Coast. CIS’s expertise in background investigations for employment screening led to growth in the tenant industry, where CIS provides credit checks and criminal searches. CIS also expanded into the business-tobusiness industry. “We leveraged our growing suite of products and services to fulfill changing client needs and reach new industries. For example, our ability to check commercial credit and tax returns on commercial loans for the mortgage industry, enabled us to service B-to-B companies’ vendor management needs and minimize account receivable exposure,” said Fedich. To support growth, the corporate offices moved to Allamuchy, N.J. and a production center opened in Baltimore. “The CIS suite of solutions grew extensively to help clients mitigate risk and grow opportunity in a compliance-driven environment,” said Mike Brown, CIS president. “CIS’s screening provides a competitive advantage, leveraging our 30-year leadership in delivering FCRA (Fair Credit Reporting Act) regulated data.”

National MI Forms Strategic Partnership With CMC

Capital Markets Cooperative LLC (CMC) announced that it has selected National Mortgage Insurance Corporation

(National MI), a subsidiary of NMI Holdings Inc., as a preferred provider of private mortgage insurance (PMI). CMC provides exclusive offerings and valueadded services to mortgage lenders nationwide. The sales teams of National MI and CMC will work together to bring National MI’s benefits to the forefront of CMC’s Patron membership. Those benefits include educating CMC’s Patrons on the advantages of various private mortgage insurance products. “We’re very pleased to partner with CMC,” said Michael Dirrane, chief sales officer with National MI. “It’s a mutually beneficial relationship for both organizations. We look forward to working with CMC’s mortgage banking and credit union members throughout the country.” “We believe our Patrons will find National MI’s products and services extremely attractive,” said Tom Millon, CMC’s president and CEO. “Our alliance with National MI further strengthens CMC’s ongoing commitment to our Patrons to continue to partner with highly-respected companies.”

Chronos Solutions Acquires Commerce Title

Chronos Solutions has announced the acquisition of Commerce Title and Closing Services LLC from parent company Ten-X LLC. The acquisition broadens Chronos Solutions’ title and settlement services offerings and significantly increases the company’s presence in California, one of the nation’s most dynamic title insurance markets. According to Chronos Solutions CEO Matt Martin, the acquisition of Commerce Title expands Chronos’ ability to deliver title and settlement services on a wide scale, especially in California, where the group has an extremely strong presence. Its high-performance platform will be integrated into Chronos Solutions’ flexible technology suite as well. “Commerce Title is fully licensed to perform title work throughout California, making it a natural fit for Chronos Solutions,” Martin said. “With this acquisition, we deepen the resources we can offer to our clients, as well as becoming even more flexible to our clients’ needs. Commerce Title’s historical emphasis on client service, innovation and flexibility align perfectly with the Chronos strategy and business model, and we believe our customers will appreciate the additional resources we will now be able to make available to them on the title and settlement services side of the transaction.” continued on page 72

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Five Rules for Keeping Your Best Employees By David Lykken

he year 2016 will likely be a make-it or break-it year for the mortgage industry. As the economy begins to

recover and workers begin to feel more comfortable, I think we’ll start to see a shift in the balance of power between employer and employee. For many years, organizations in our industry have not had to place so great an emphasis on employee retention,

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

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P E R H NA C in D ont

m Fair

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because people were taking whatever jobs they could get. But we’ve already begun to see the “quits” number rising in recent months, and I think it’s safe to say that people are going to start looking for greener pastures again. Now seems like a fitting time to revisit employee retention. Perhaps you have industry veterans working for you who are looking for a fresh start. Maybe you have new college graduates that, as they see the economy improving, are going to start seeking something more meaningful for their careers. Whatever the case may be, your people are going to start looking for greener pastures, so I want to ask the question, “How can you make your pasture the greenest pasture there is?” Here are a few suggestions ... 1. The first thing you need to make sure you’re doing if you want to keep your best employees is developing and communicating your mission. When we are desperate, most of us will gladly show up at work if it means being able to pay the bills. But when the tide rises and our lives become more affordable, we start looking to find meaning in our work. Most people spend more of their waking hours at work then they do at home, so it’s only natural that they would want their work to be more than “just a job.” So, what kind of workplace are you providing for your employees? Is working for you “just a job,” or do your employees feel like they’re part of something bigger than themselves and doing something important for the world? First, ask yourself if you have a mission worthy of devotion; then, ask yourself if you’re communicating

that mission. Otherwise, when better opportunities arise, all you will be left with are the ones who are still desperate. 2. The next thing to do in order to keep your best employees is create a culture of communication in your organization. Do your employees feel comfortable coming to you with their concerns? Do you have an open door policy? Like just about any other relationship, most of the soured relationships between employers and employees break down due to lack of communication. Employees want to work for someone they feel like they can talk to, someone who they feel listens to their concerns. Here are a few tips for becoming that type of employer ... First, don’t just give feedback to your employees on their performance, ask your employees for feedback from them on you as a leader. Always be asking them what you can do differently to improve their experience in your organization. Second, allow employees to collaborate with one another. Have team meetings where the sharing of ideas is encouraged. Use some sort of internal communications technology like a blog to keep people discussing things with one another. When people leave your organization, they aren’t just leaving you; they’re leaving all of their coworkers. If you want to keep your best employees, you’ll make leaving those relationships a hard thing for your employees to do. Whether it is between your employees and you, or your employees and their colleagues, you want to make open communication a key aim in your organization. The organization that talks together walks together.

3. A third item you’ll want to focus on if you want to retain your talent is clearing out the negativity in your organization. Now, you’ll definitely want to tread lightly on this one. Certainly, you don’t want to fire people so often and for such small infractions that other employees work in constant fear of being on the chopping block. In fact, letting people go too frequently can be a surefire way to scare your best employees away. People want to work for a company in which they can feel secure. If they feel like their job is at risk, they’ll start looking elsewhere. So, when employees make mistakes, try not to jump straight to termination. When possible, use those mistakes as teaching moments to help your employees grow. All of that being said, there are certain kinds of employees that you need to let go so that they don’t damage the culture in your organization. These are the kind of employees who make people want to leave your organization because they are difficult to work with. I’m talking about employees who are constantly complaining and dragging everyone else on the team down with them. Negativity is a disease that can spread like a plague. If you want to keep your best employees, you’ve got to clear out the infection. It can be hard (as it should be) to terminate an employee, but think of the rest of your team. They deserve a better work environment.

depend on. But, more than that, benefits like these let your employees know that you care about them. And, at the end of the day, your best employees just want to work for someone who they believe cares about them. So, what about you? Do you care about your employees enough to keep them? David Lykken, a 43-year veteran of the mortgage industry, is president of Transformational Mortgage Solutions

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

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5. Finally, the last thing you want to make sure you’re doing if you want to keep your best talent is providing the right financial incentives to keep people on your team. First, and most obvious, you need to make sure you’re paying your people what they’re worth. Part of this is financial; people want to

“…don’t just give feedback to your employees on their performance, ask your employees for feedback from them on you as a leader.”

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4. Another important feature to have in your organization if you want to keep your best employees is the opportunity to advance. This seems like a no-brainer but, in practice, I think many organizations fail on this front. Many employers pay lip service to the idea of creating opportunities to advance but, when employees actually express interest, there isn’t really anywhere for them to go. People care about the development of their careers. If they feel like they’re going nowhere on your team, they will gladly seek out someone else’s to nurture their ambitions. Creating opportunities to advance is really all about developing a shared vision of success with your employees. Let them know the direction you’re headed as an organization and then challenge them to find roles they could fill that would contribute to organizational success. You don’t have to hand out promotions for free; your best employees will have no problem working for the advancement. As your organization grows, look for new niches that your employees can fill and challenge them to do the same. If your employees feel like they’re going somewhere in their careers working for you, they won’t want to go anywhere else.

make more money to better their lives. But part of it is also psychological. People want to feel like they’re appreciated—and nothing lets them know how much they’re appreciated more than the number you place on them. With the Internet, it is incredibly easy for your employees to find out what other people in their position are making. If they think they can make a lot more somewhere else, they will always be tempted to leave. But, this isn’t just about salary. It’s also about all of those other perks and benefits—from health insurance, to retirement plans, to vacation time, to daycare assistance, and so on. Again, all of these things do provide tangible comforts that your employees come to

Fannie Mae to Begin Requiring Trended Credit Data in June, With Rollout of DU 10.0

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By Terry W. Clemans On Jan. 28, Fannie Mae announced more details about the greatest change to the mortgage credit reporting process since the adoption of the credit score, “trended credit data.” The plans for this change initially went public in October of 2015 when Fannie Mae’s CEO Timothy Mayopoulos addressed the audience at the Mortgage Bankers of America (MBA) Annual Convention in San Diego. In that address, trended credit data sounded like a minor change and it garnered little attention at the time or since by many in the mortgage industry. That, however, will soon change as trended credit data is a huge development for the industry and is going to vastly change underwriting decisions for many consumers when it goes into use on Monday, June 27, 2016. Trended credit data delivers an expanded, more granular viewpoint of the consumer’s credit history. It includes the historical payment amount for each month going back up to 30 months providing for a more wellinformed decision than previously possible with the current credit report data. When Fannie Mae rolls out the Desktop Underwriter (DU) Version 10.0 over the weekend of June 25 (FannieMae.com/content/release_notes

/du-do-release-notes-06252016.pdf), the mortgage industry will begin using a powerful new tool that has been in development for more than a decade and already proven in other markets. While each of the three national credit bureaus currently offer trended credit data in some format, only TransUnion’s CreditVision and Equifax’s Dimensions trended credit data sets will be required by Fannie Mae in June. Experian’s trended credit data is currently not part of the Fannie Mae rollout, but could become part of the requirements at a later date. This expanded view of a consumer’s credit history can reveal trends and behaviors that could never be detected with the current credit reports that show only the most recent payments on the account. By seeing the balance and payment each month on revolving charge accounts, it is very easy to see when a consumer is consistently paying more than the minimum amount due on credit cards and reducing total amounts borrowed, thus decreasing their credit utilization. Likewise, it will be easy to see if they are going the opposite direction and spending more each month, and making smaller or only minimum payments thus becoming a greater credit risk. These payment trends cannot be seen on standard versions of the consumer credit report or picked up by any of the traditional risk

scores that use the current non-trended data to calculate the score. Exactly how this new data is going to be used in underwriting is yet to be disclosed. Since the credit scores currently offered by FICO and VantageScore do not consider the trended credit data, the big underwriting question becomes what is more important on the borderline applicant: the credit score or the credit trend? Could an applicant with a 750 credit score now be denied due to the new trended credit data exposing the consumer’s steady rise in credit consumption over the past 30 months? Suppose someone goes from a moderate credit utilization rate of 20 percent to one that is on the verge of being unsustainable at say 80 percent, yet still scores high enough to qualify under current guidelines, do they get approved or denied? On the other side, what about an applicant who has shown vast improvement in their total debt utilization, making payments for the past 24 months two to three times the minimum required amount, yet their credit score is still a few points short of being approved. Does this trend of consistently lower credit utilization override the credit score for an approval? Fannie Mae officials have told me that they will be providing more details about the way the new trended data will be used in the coming months. The

Fannie Mae announcement on the DU 10.0 Enhancement that set the projected rollout date of the weekend of June 25 shows that beginning in March Fannie Mae will be offering more communications, including educational Webinars to help industry professionals understand this powerful new underwriting tool. Since the programmers have been working for about two years getting ready to bring this trended credit data into Fannie Mae’s DU, hopefully the projected timeline does not get postponed, but with a new program this large and complex that is always a possibility. Watch for more communications from Fannie Mae as well as from the National Consumer Reporting Association (NCRA) who will also be providing more information in the coming months. For details about each of the national repositories’ trended credit data programs see: l TransUnion: NewsRoom.TransUnion.com/Fannie -Mae l Equifax: Equifax.com/assets/USCIS/equifax_tr ended_data_101.pdf Terry W. Clemans is executive director of the National Consumer Reporting Association (NCRA). He may be reached by phone at (630) 539-1525 or e-mail TClemans@NCRAInc.org.

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The Long & Short:

nmp news flash continued from page 16

The Business of Short Sales

Could Hardest Hit Funds Facilitate a Refinance Where None Exists? By Pam Marron More than 6.4 million underwater homeowners still exist across the United States. The vast majority of these folks are trying to stay put. Many still have a portfolio conventional first mortgage, a second mortgage or an interest-only home equity line of credit (HELOC) where no refinance option exists. Why these options could work The ideas shown below use Hardest Hit Funds (HHF) as new secondary financing, replacing funds to achieve a better first mortgage, second mortgage, or both. The two reasons that these options could work is because: 1. New secondary financing is permitted, and 2. There is no maximum cap on the combined loan to value of a first and second mortgage when government entity funds are used.

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52 1. Use Hardest Hit Funds to pay down negative equity to the FHA short refinance loan limit for non-GSE first mortgages A borrower who is current on their negative equity (underwater) non-FHA insured mortgage may qualify for an FHA-insured refinance mortgage known as a short refinance, provided that the mortgagee or investor writes off at least 10 percent of the unpaid principal balance of the existing first lien mortgage. A question of if the FHA would allow Hardest Hit Funds to be used for the 10 percent principal balance write-off exists. Using Hardest Hit Funds to pay down the back end total of a negative equity mortgage to the 97.75 percent LTV (loan-to-value) needed for an FHA short refinance would allow for a new mortgage to non-GSE conventional mortgage holders that are underwater. A portion of Hardest Hit Funds in Florida is currently being used for principal reduction. This idea could be compared as principal reduction for loan restructure. But, homeowners could pay the funds back at a better rate and term. We already know that new subordinated financing is permitted under the FHA short refinance and that there is no limit on the combined LTV when a second lien is held by a governmental entity (the combined LTV when secondary financing is not from a government entity is capped at 115 percent). The fact that this loan requires the homeowner to be current is a major benefit. And in the previous FHA Handbook 4155 under “No Cash Out Refinance Transactions With an Appraisal/ Short Payoffs,” it is stated, “For instances where the existing note holders are reluctant to write down indebtedness, a new subordinate lien may be executed for the amount by which the payoff is short.” 2. Use Hardest Hit Funds to replace high interest rate and interest-only secondary financing There is no refinance available for underwater second mortgages or HELOCs. Over the next four years, 1.8 million underwater interest-only HELOCs will reset to fully amortized payments. Hardest Hit Funds could replace underwater second mortgages that are interest-only or at dangerously high interest rates. Funds could also provide a fullyamortized lower interest rate for resetting interest only HELOCs. When using secondary financing from a government entity, there is no maximum cap on the CLTV of the first mortgage and secondary financing. continued on page 79

New York law firm of Seyfarth Shaw, 33 percent of those polled picked Donald Trump as the presidential aspirant that has the commercial real estate world’s best interests in mind. Trailing behind in second was Jeb Bush at 13 percent, followed by Hillary Clinton at 12 percent and Marco Rubio at 11 percent, with the socialist du jour Bernie Sanders polling a measly three percent. Beyond the White House race, the survey also raised a number of questions specific to the industry. Fortythree of respondents believed the U.S. commercial real estate market can absorb a 51 to 100 basis point increase before experiencing a material adverse impact, while more than half of respondents expected only two additional rate hikes this year. Furthermore, 87 percent of respondents expressed concern on whether this sector will be able to refinance the $111 billion in CMBS loans coming due this year. Eighty-three percent of respondents stated that they were worried over the “brain drain” on the commercial real estate workforce as the sector embarked on a major generational shift. The survey polled 139 commercial real estate professionals last month.

Morgan Stanley Settles RMBS Woes

The U.S. Department of Justice (DOJ) has announced that Morgan Stanley will pay a $2.6 billion settlement to resolve federal charges over the problems stemming from its residential mortgage-backed securities (RMBS) backed by sub-prime mortgages in the period leading up to the 2008 recession. Under the terms of the settlement, Morgan Stanley acknowledged in writing that it did not provide important information to prospective investors about the quality of the sub-prime mortgage underlying its RMBS and about the due diligence practices that enabled these loans to be securitized. The settlement involved the Wall Street firm reaching an agreement with members of the federal RMBS Working Group, which was created in the aftermath of the recession to investigate the circumstances leading to the financial meltdown. Morgan Stanley has also reached settlements with the attorneys general of New York and Illinois for $550 million and $22.5 million, respectively, in connection to its problematic RMBS activities. “Those who contributed to the financial crisis of 2008 cannot evade respon-

sibility for their misconduct,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This resolution demonstrates once again that the Financial Institutions Reform, Recovery and Enforcement Act is a powerful weapon for combatting financial fraud and that the department will not hesitate to use it to hold accountable those who violate the law.” “Today’s agreement is another victory in our efforts to help New Yorkers rebuild in the wake of the financial devastation caused by major banks,” said New York State Attorney General Eric T. Schneiderman. “Today’s settlement will deliver resources to the families and communities that need them the most, while helping New Yorkers avoid foreclosure, and spurring the construction of more affordable housing units statewide.” In a statement, Morgan Stanley said it set aside legal reserves to cover the settlement and would not require any further charges in its upcoming financial results. “We are pleased to have finalized these settlements involving legacy residential mortgage-backed securities matters,” said Mark Lake, a company spokesperson.

NAR Survey Details TRID Problems

Although TRID has been in effect for four months, the new rules have created a series of headaches for the nation’s real estate professionals. According to a new survey conducted by the National Association of Realtors (NAR) of its membership, the Know Before You Owe rules has slowed business operations, but has yet to have any serious damage. In the new survey, respondents reported that 10.4 percent of transactions were delayed, but less than one percent of transactions were canceled, while the typical delay was 8.8 days. More than half (54.5 percent) acknowledged problems in getting the closing documents for transactions, while half found errors when they did get access the documents. Missing concessions and incorrect names or addresses were the most frequently cited errors, although incorrect fees, commissions and taxes also turned up. On the bright side, the respondents admitted that e�settlement procedures had fewer errors and faster remediation than the paper-driven variety. The NAR report covered the first three months of life under TRID. continued on page 65

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NAR’s Homebuyer Demographics for 2015 By Karen Deis

l l l l

Every year, the National Association of Realtors (NAR) issues a report called “Survey of Home Buyers and Sellers.” And every year for the last 13 years, I read the report for you and break down the charts, graphs and commentary in an easy-tounderstand document that you can use in your business planning strategies and share with real estate agents. Here are a few ways you can use this report: Your business planning for 2016 l Web site Business planning meetings with your real estate agents l E-mail real estate agents Social media l Real estate agent sales meetings Blog page

This is only a portion of the data you’ll find the section called “Home Buyer Profiles.” The NAR segments the following profiles and the uniqueness of each home buyer category by: l Married with kids l Repeat buyers l Single females l Buyers of senior homes l Single males l Buyers who are active military and veterans l Unmarried couples l Buyers with student loan debt l First-time buyers l LGBT homebuyers While the survey indicates that 32 percent (average) were first-time homebuyers, over 50 percent of unmarried couples and homebuyers with student debt were first-time homebuyers. And 39 percent of single females and single male homebuyers were first-time homebuyers. Another stat that is important to you is that 43 percent of all home buyers RENTED before buying a home. Marketing to apartment complexes may be one of the lead-generation tactics to add to your business plan in 2016. So, here’s my consolidated report. Study each segment. Age differences. Income. Reasons for buying a home. Types of homes purchased. Know their hot buttons—especially when talking with them or holding niche home buyer seminars.

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Survey of Home Buyers–2015

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Every year, the National Association of Realtors (NAR) conducts a survey of homebuyers. It contains valuable information to help you understand what motivates people to buy a home and what’s important to certain types of homebuyers. Average Homebuyer Demographics l Average age–44 l Average gross income–$86,100 l Married couples–67 percent l Single females–15 percent l Single males–Nine percent l Unmarried couples–Seven percent l Own second home–19 percent l First-time homebuyers–32 percent l Multi-generation households–14 percent l VA buyers–21 percent Married with Children Home Buyer Demographics l Average age–36 l Average gross income–$100,000 l 27 percent first-time homebuyers l 85 percent purchased home through RE agent l Reason for home purchase l Better area l Closer to schools l Job relocation l Larger home l Desire to own a home l Types of homes purchased l 92 percent single family l Three percent townhomes l One percent condo l Four percent other Single Female Homebuyer Demographics l Average age–50 l Average gross income–$57,300 l 39 percent first-time homebuyers l 90 percent purchased home through real estate agent

l Reason for home purchase l Closer to family and friends l Want to own a smaller home l Change in family situation (divorce, death, birth of child) l Desire to own a home l Types of homes purchased l 72 percent single family l 12 percent townhome l Seven percent condo l Nine percent other Single Male Homebuyer Demographics l Average age–45 l Average gross income–$67,000 l 39 percent first-time homebuyers l 89 percent purchased home through real estate agent l 20 percent lived with parents or friends prior to owning a home l Reason for home purchase l Retirement l Closer to family and friends l Change in family situation (divorce, marriage, death) l Desire to own a home l Types of homes purchased l 73 percent single family l 10 percent townhome l Seven percent condo l 10 percent other Unmarried Couples Homebuyer Demographics l Average age–33 l Average gross income–$87,600 l 57 percent first-time homebuyers l 88 percent purchased home through real estate agent l 57 percent rented before buying home

l Reason for home purchase l Closer to job l Better area l Change in family situation l Desire to own a larger home l Desire to own a home l Types of homes purchased l 85 percent single family l Five percent townhomes l Three percent condo l Seven percent other First-Time Homebuyer Demographics l Average age–31 l Average gross income–$69,400 l 32 percent of all homebuyers were first-time homebuyers l 56 percent married couples l 18 percent single females l 88 percent purchased home through real estate agent l Reasons for buying home l Establish a household l More affordable than renting l Desire for larger home l Change in family situation l Desire to own a home l Types of homes purchased l 80 percent single family l Nine percent townhomes l Three percent condos l Eight percent other

Buyers of Senior Housing l Average age–66 l Average gross income–$78,800 l Five percent first-time homebuyers l 59 percent married couples l 24 percent single females l 11 percent single males l Three percent unmarried couples l 80 percent purchased home through real estate agent l Reasons for buying a home l Closer to family and friends

Homebuyers–Active Military & Veterans l Average age–48 l Average age active duty buyers–34 l Average age veteran buyers–61 l Average gross income–$79,500 l 28 percent first-time homebuyers l 85 percent purchased home through real estate agent l 50 percent rented before buying home l 78 percent married couples l Nine percent single males l Six percent single females l Reasons for buying a home l Closer to family and friends l Larger home l Job-related relocation l Desire to own home l Types of homes purchased l 86 percent single family l Five percent townhome l Two percent condo l Eight percent other LGBT Homebuyer Demographics l Average age–39 l Average gross income–$61,000 l 50 percent first-time homebuyers l 34 percent married couples l 12 percent unmarried couples l 28 percent single males l 25 percent single females l 54 percent rented before buying a home l 91 percent purchased home through real estate agent l Reasons for buying a home l Closer to family and friends l Financial security l Change in family situation l Desire to own a home l Types of homes purchased l 78 percent single family l 12 percent townhome l Six percent condo l Six percent other I hope this information gives you some insight to the types of homebuyers and their unique reasons for wanted to buy a home. Karen Deis of MortgageCurrentcy.com had been in the mortgage business since 1972 and left the industry in 2000 to focus on helping loan originators and company owners increase their business and close more loans. MortgageCurrentcy.com is a NAMB+ endorsed provider and members of NAMB can get a special subscription discount at NAMBPLUS.com. She may be reached by e-mail at Karen@KarenDeis.com.

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Multi-Generational Homebuyer Demographics l Average age–49 l Average gross income–$82,500 l 30 percent first-time homebuyer l 84 percent purchased home through real estate agent l 69 percent married couples l 13 percent single females l Seven percent single males l Four percent unmarried couples l Reasons for buying a home l Job location l Change in family situation l Larger home l Desire to own a home l Types of homes purchased l 82 percent single family l Six percent townhomes l Three percent condo l Nine percent other

Homebuyers With Student Debt l Average age–33 l Average gross income–$86,400 l 54 percent first-time homebuyers l 89 percent purchased home through real estate agent l Average student loan debt–$25,000 l 23 percent difficulty saving downpayment l Reasons for buying home l Change in family situation l Job relocated l Desire to own a home l Desire for larger home l Types of homes purchased l 87 percent single family l Six percent townhome l Two percent condo l Two percent other

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Repeat Homebuyer Demographics l Average Age–53 l Average gross income–$98,700 l 86 percent purchased home through real estate agent l Expect to stay in home 15 years l Reasons for buying a home l Smaller home l Closer to family and friends l Job relocation l Desire to own a home l Types of homes purchased l 84 percent single family l Six percent townhome l Four percent condo l Six percent other

l Smaller home l Desire to own a home l Retirement l Types of homes purchased l 79 percent single family l Nine percent townhomes l Seven percent condos l Five percent other

“We are in a recruiting industry that happens to do mortgages.”

Independence and Freedom By Andy W. Harris, CRMS

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These are two powerful words and you truly cannot have one without the other. My favorite definition of independence is “Freedom from outside control.” My favorite definition for freedom is “The power or right to act, speak, or think as one wants without hindrance or restraint.” These seem vitally important if our job is to look out for the best interests of our clients and seek long-term referrals. Certainly, we all want independence and freedom, but how many loan originators actually have independence and freedom in the residential mortgage industry? While I believe many think they do, I would argue that very few actually do. We are in a recruiting industry that happens to do mortgages. When I look at how many job changes most of my colleagues have had over the years I cannot help but question their judgment and the lack of attention they have invested into their career. I understand the pressures are high and I realize that the incentives and greener grass mentality can impact decision making, but ultimately, it’s the originators responsibility to do

what they feel is best for the clients they individually serve. At some point, there must be a break in this pattern by realizing independence and freedom are the only way for the longterm career-minded originator seeking success. Not only is having choice and flexibility better for the originator, but it is certainly better for their clients. Think about lenders and how drastically different they are with guidelines, overlays, policies, pricing, execution, staffing, turn-times, volatility, compliance, interpretations, the list goes on. For those who are sheltered and work for one of these lenders, I can tell you that your employer is not the best at what they do no matter how much they may try to influence you otherwise and no matter how hard you sell it. If you’re employed by a lender, then you cannot be the best due to this restriction on choice and lack of awareness. Excellence is exposed only by independence, and competition in this business and lenders must be rated by the originator in multiple categories. Turnover is high for lender-

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employed originators, let’s face it. These originators compare lenders by changing employers. Why would you move your license constantly to a different lender when you could compare multiple lenders on any given day and not need to make any changes at all? In addition, what if the interest rates and costs to your clients were considerably less and in most cases the people you work with are much more experienced? What if lenders competed for your clients versus competing for your employment? Think about that. Talk about being in a powerful position. These harsh realities no one wants to hear if they are employed by a lender and wearing the shirt with confidence, but we all know deep down its true (those of us that are aware of it). You cannot be your best if you’re not independent. You cannot offer the best if you’re not independent. You cannot expose the best if you’re not independent. This doesn’t mean you cannot have an excellent support team around you, actually quite the opposite. Mortgage brokers and any originator working for a mortgage brokerage have the ability to partner with some of the greatest wholesale lenders and mortgage professionals in the country. They are able to expose not only best on pricing and execution, but also adapt quickly and change when needed on where they submit loans and where they do not. Right now there are more opportunities and advantages in wholesale lending than ever in history. While I believe pricing and execution are the two most important reasons originator independence is vital, recent changes also expose the importance of having options through comparing lenders and the ability to adapt and adjust quickly. TRID was a great example of this. When TRID went live, there were huge discrepancy on the closing process and execution between lenders. I believe ordering the Closing Disclosure (CD) before cleared-to-close and table funding is vital, but many had not adapted through technology or procedure and as a result lost busi-

ness for failure to execute from mortgage brokers. Rolling the dice and being employed by one lender during volatile times is certainly not a good place for any originator to be. The shocking part about all of this is excuses or assumptions. Random lender-employed mortgage originators will stick to this word “broker” and not realize what it means and give themselves excuses for not being the best they can be in a true broker versus continuing to steer to higher-cost, limited option credit lines. Let me tell you the definition of a broker, it’s “independence and freedom.” Remember those definitions mentioned here and what they mean? If you want to be your best, lender competition exposes the best. You cannot choose one lender and cross your fingers. It just doesn’t make any sense with the level of options consumers have in this industry. You want to have access to all these options for them. Join the movement and get engaged in your career. Seek opportunities by yourself and not by someone recruiting you. Get the facts. See how powerful wholesale lenders are today and the opportunities they offer that you’ll never see in correspondent or retail lending. See how much control you can have over the process, and how much more competitive you can be on pricing and execution over competitors. Have independence from outside control. Have freedom and the power or right to act, speak, or think as one wants without hindrance or restraint. The resurgence of the mortgage broker is inevitable and denial will turn into embrace once the industry finds balance again through originator awareness overtaking recruiter influence. Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and past president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431, email AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

“Did you ever hear about the farmer who won the lottery? They asked him what he would do with the winnings. He said he would continue farming until he lost that, too. That would be me as a broker.”

Do Dinosaurs Dream of Other Dinosaurs? By Eric Weinstein

But what after that? I like my house, I don’t want to move. I like my car, it is getting a bit older, but it is fine for now. I love my job, so I don’t want to quit … so what is left? Well, this is a fantasy, so let’s go wild. Suppose I bought the company where I work? We could become a lender or maybe even buy a bank. But, I wouldn’t want to do all the administrative stuff, I want to still be a loan officer, so let’s leave current management in place. Besides, I like

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1. Donate to my local current religious belief 2. Set up a trust fund for my kids 3. Have Stanley Steamer come in and clean my carpets

them. They are good to me. If we became a lender, then we have to work with only four or five lenders, since any more would drive our underwriters crazy. Right now, we have about 50 wholesalers with which we deal. I like the variety of underwriting with a lot of lenders. When you are a lender, it is a numbers game. The more loans you do, the cheaper it gets per unit. If we became a lender, we would have to force the loan officers to use them. I don’t like that. If we didn’t, and let them choose between acting as a broker or a lender on the loan, many would pick being a broker. That means we would have to charge a higher admin fee on our lender loans than if they brokered them. It would become a vicious cycle where the less we acted as a lender, the higher the admin fee, the less we would act as a lender. We could always force the loan officers to act as a lender on every deal. Being a loan officer myself, I wouldn’t like that. I would probably quit my own company. Being a lender is a boat load of work and expense. Someone has to pay the freight. It always comes down to the loan officer. Either they raise the admin fee so much, you are not competitive and get less deals or they lower your commission. Either way. I would not like that. If we bought a bank, it would be the same problems, plus regulation on the deposit side. No thank you. Being a broker is the best way to go. Did you ever hear about the farmer who won the lottery? They asked him what he would do with the winnings. He said he would continue farming until he lost that, too. That would be me as a broker. I love being a broker. It may be a

Eric Weinstein worked in banking, on the commercial real estate side until 1991, when he fell in love with residential lending. In 1995, he started a small mortgage company in his basement called Carteret Mortgage Corporation, which in 2003, grew to one of the largest mortgage broker companies in the United States. Eric is semi-retired, doing mortgages by referral only. He may be reached by phone at (703) 505-8692 or e-mail eweinstein4u@gmail.com.

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I have been an independent mortgage broker for 20-plus years now. I am a dinosaur in this industry. I never bought into the trend of being a lender. I think being a broker is the best, most efficient way of doing mortgage business, both for me and my customers Recently, the Powerball prize reached a gazillion dollars. Literally, the prize had more zeros than the Japanese Imperial Air Force in WWII. Of course, I bought a ticket. Buying a ticket gives you the right to fantasize about what you would do with the money. Basically, that is all you get for the price of a ticket. The odds of you winning are the same as you getting struck by lightning, while drowning and marrying Sarah Palin at the same time. So here I am, a dinosaur with a Powerball ticket wondering what I would do with the money if I won. Of course, first I would do all the mandatory things:

dying industry segment, I don’t know. All I know is that I am happy the way things are. I am a loan officer, dealing with a bunch of wholesalers and I can offer competitive prices to my customers. And, no one is screwing around with my commissions. As Charlie Sheen would say, “Winning!” As a dinosaur in the mortgage industry, I don’t dream of evolving into a mammal. I dream of being a larger dinosaur, with maybe cleaner carpets.

“In addition to the normal costs of recruiting and onboarding a new employee, independent firms have the additional burden of funding prelicensing education, state and test registration fees, and ongoing continuing education, not to mention the opportunity cost of having a revenue-producing asset engaged in non-revenue activities.”

Hiring Loan Originators? Beware the unbalanced playing field By Mike McNulty

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Since the passage and implementation of the Secure and Fair Enforcement for Mortgages (SAFE) Act in 2008, the Nationwide Mortgage Licensing System and Registry (NMLS) has become the single most impactful and prevalent factor affecting the ethical business practices of independent and depository loan origination firms, their employees, and the edu-

cation industry serving these markets. In looking at the distinct markets addressed by the act, independent and depository institutions are clearly defined and subject to vastly different requirements, specifically as it relates to the training and education of their respective originators. Independent origination firms, specif-

Source: 2014 NMLS Mortgage Industry Report

ically designated as non-depository or state-licensed, are required to register potential originators with the NMLS, subject them to background and credit checks, have them successfully complete a mandated 20 hours of pre-licensing education delivered by an approved provider, successfully pass a national examination, and have them complete a minimum of eight hours of continuing education training annually. Additionally, since all but seven states have adopted the Uniform State Test, many “charge” for this reciprocity by requiring additional pre-license or continuing education hours of training. When you analyze the licensure status of the approximately 130,000 independent loan originators practicing as of Dec. 31, 20141, it becomes clear that this educational requirement can add up quickly due to the number of licenses held by the average loan originator.2 Depository, or federally-insured, loan origination firms have the lighter burden of compliance as compared with the independent firms under the current interpretation of the SAFE Act. Would-be loan originators at these firms need only register with the NMLS and provide fingerprints for a background check. Beyond that, their only educational requirement is to be deemed “qualified” by their employer. Absent are the requirements for prelicensing or continuing education, or passage of a national test. This differentiation introduces many factors that negatively impact the balance of the playing field for non-depository firms.

The ability to hire ethically practicing, licensed loan originators A closer examination of the size of the markets points to a significant issue as it relates to the ability of the loan originators practicing in the field. As mentioned, there were 130,000 independent loan originators as of Dec. 31, 2014, compared with approximately 400,000 loan originators at depository institutions as of the same date.3 Data taken from the 2014 State Regulatory Registry LLC (SRR) Annual Report4 indicates the first-time pass rate for the national SAFE examination was 68.54 percent on average for the year. Extrapolating this rate across the cohort of depository loan originators, it becomes evident that as many as 125,000 employees actively engaged in loan originations would not have passed a test that is designed to measure minimum competency to practice in the industry. Independent firms cannot employ these individuals.

The cost of hiring ethically practicing, licensed loan originators In addition to the normal costs of recruiting and onboarding a new employee, independent firms have the additional burden of funding pre-licensing education, state and test registration fees, and ongoing continuing education, not to mention the opportunity cost of having a revenue-producing asset engaged in nonrevenue activities. Depending on the

number of licenses held per loan originator, these initial costs can add up quickly, and all the while, the employer has no indication of the ability of the individual to pass a high stakes examination or provide any long-term return on this initial investment. Depository firms do not experience these initial requirements.

The cost of investing in highly portable employees Sir Richard Branson has been often quoted for his guidance to employers: “Train employees well enough so they can leave, treat them well enough so they don’t want to.”5 This advice is impactful and important for any organization to embrace at a cultural level. Where this becomes difficult to equate is in a market with diverse barriers to entry and continued success. Several scenarios are becoming more

prevalent in the loan origination market that make many employers hesitant to invest heavily in new assets. Most firms have policies that tie employability of a potential loan originator to the number of attempts it requires to pass the national examination. Often times, it is one attempt. The firm loses not only time, but also the cost associated with pre-licensing and testing that individual. As we have seen, depositories do not have this requirement. Additionally, fully licensed and educated loan originators at independent firms become attractive targets to hiring managers at depository institutions. These individuals have proven their ability to pass all of the background checks as well as the testing and education requirements. The depository firms receive all of the benefits associated with a certified employee while bearing none of the cost. This is as close as that hiring manager can

get to a free lunch. Lastly, the loan originators themselves have to embrace the concept of continual education required of them should they choose to originate at an independent firm. For many, this becomes bothersome or redundant, and they seek to associate themselves with an organization that does not require those investments in time and energy. Again, the depositories stand ready to accept their services. As we have seen, the compliance and education requirements in our industry continue to increase in magnitude and focus and it is not a trend that many see easing for the foreseeable future. As such,

it seems apparent that the Consumer Financial Protection Bureau (CFPB) and other regulatory bodies should re-examine their stance on the requirements applied to depository loan originators and level the playing field of training and education. Mike McNulty is executive vice president of financial services for OnCourse Learning Corporation, where he maintains complete financial and operational responsibility for OnCourse Learning’s mortgage, insurance, bank and credit union, and money services compliance products. He may be reached by phone at (443) 391-5210 or e-mail mmcnulty@oncourselearning.com.

Footnotes 1—Mortgage.NationwideLicensingSystem.org /About/Reports/2014-Annual-MortgageReport.pdf (page 3) 2Mortgage.NationwideLicensingSystem.org/About/Reports/2014-Annual-Mortgage-Report.pdf (page 5) 3—Mortgage.NationwideLicensingSystem.org/About/Reports/2014-Annual-Mortgage-Report.pdf (page 14) 4—Mortgage.NationwideLicensingSystem.org/About/Documents/SRR-AR2014.pdf (page 22) 5—Virgin.com/Richard-Branson/Look-After-Your-Staff

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“The changing regulatory environment has put more risk on mortgage bankers, and is pushing some mortgage bankers into the broker field.”

The Modern Mortgage Broker

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see the stress I endure on this wild roller coaster that is the housing market. Watching the film “The Big Short” is still a little too close to home for me. By Tom Pasckvale Thankfully, we are on the other side of the crisis, as home prices have stabiMortgage broker” may not be the They have had the opportunity to see lized, and there is a resurgence of response most kids give when asked the excitement–and difficulties–which opportunity for mortgage brokers. what they want to be when they grow come with opening your own business. The changing regulatory environup. However, my daughters don’t hesiI enjoy the challenge of analyzing ment has put more risk on mortgage tate to consider this career. This profes- financial scenarios, meeting with new bankers, and is pushing some mortgage sion provides for my family, allows clients, and helping people meet their bankers into the broker field. The introwork-life balance, and helps me com- financial and homeownership goals. duction of TRID in 2015 has put brokers municate with my family better. The Networking with professionals at small on a more level playing field in discloskids have been involved in the incredi- business events has led to amazing con- ing the profit-per-loan on closing docuble transition in the last year as I have versations and new touch points. ments, which also applies to the opened my own mortgage brokerage. Now, my kids don’t necessarily get to upfront disclosures. As the market contracts, the mid-tier lender can be more agile and can react quicker to industry change. As a recently launched independent mortgage company, I know the critical importance of maintaining a connection with our clients. Working with the big banks is no different. Their incentives are different than ours. To protect and serve our own customers, I need to create relationships with the banks so From affordable association management services to creating that we can work effectively together. vibrant and profitable conferences, Agility Resources Group can By consistently providing them with a help your mortgage association achieve a stronger bottom line. high volume of qualified loans, I can Ask us about our creative approach to partnering with you. We’ll impact their bottom line and can expect responsiveness and flexibility in bring the help you need to achieve the results you depend on. return. Wholesale originations, and especialConference Producers ly loan servicing, has become very profitable to lenders so mortgage brokers are a very important piece of the puzzle. Big banks, such as Wells Fargo, Chase, Bank of America, and Citi are the exception. They exited the wholesale market years ago. These big banks are lending less to homebuyers, or they’re making less on loans—and sometimes, it’s a combination of both. There’s only Association Managers so much the bank can do with homebuyers. Banks seek a prime customer because it gives them a better opportunity to sell other, more profitable loans and services to its home-loan customers. But there is no question that Contact Vincent M. Valvo, CEO the big banks have become more discriminating about mortgages. 860.922.3441 or info@AgilityResourcesGroup.com Bank of America Chairman and CEO www.AgilityResourcesGroup.com Brian Moynihan recently said in response to an analysts’ question on the compa-

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ny’s mortgage business, “It will never be the biggest business at Bank of America.” Among the top 40 lenders, non-banks accounted for 37.5 percent of originations in 2014, up from only 7.5 percent in 2011, says Guy Cecala, publisher of Inside Mortgage Finance. As a result, independent mortgage companies can be more aggressive in terms of pricing, which ultimately is reinforcing the opportunities for brokers. We are also finding competitive advantages as an independent mortgage banking company. By offering a broad array of residential mortgage products, professionals can help more potential homebuyers, which can help drive purchase loan business. Loan professionals can serve the needs of any homebuyer, from helping first-time homebuyers achieve their dreams of homeownership, often through government loan programs, to providing jumbo loans through its relationship with independent banks. As a new business owner, we are striving to attract top talent to represent our company that can drive new business from various referral partners, with a desire and energy to succeed. The financial services industry is a competitive market. Surrounding yourself with top producers who believe in your nurturing strategies and are focused on assisting your team’s growth is beneficial. This strategy helps support the growth of your independent business, maintains an entrepreneurial spirit, and develops a team-oriented culture. These advantages are critical in an industry where customer service is so important. To protect my bottom line, I need to effectively manage technology. I look at this from multiple directions. I need technology to be affordable. I need it to make my processes more efficient. I need it to help me provide my clients with the best rates and transparency. There are many platforms available to simplify and streamline each customer transaction. With the help of this advanced software, mortgage reps can easily field each call and rate. In addition, many lenders have implemented different technologies to

speed up processes such as issuing the closing disclosure which shortens the closing timeline a bit. This offering, especially in a purchase market, is very convenient. Tech-savvy lenders can leverage automation that will drive down the cost per loan, increase loan quality and compliance and meet the evolving and complex data security and privacy requirements that financial firms face. There are several mortgage-specific CRM solutions, like BNTouch, Surefire and Jungo, on the market that can be engineered to address your infrastructure strategy and help maximize your operational performance. These not only facilitate the maintenance of customer relationships, but also identify high quality business opportunities. Quickly and efficiently-then drive them to the point-of-sale, convert them into customers and then maximize their

value through repeat business and referrals. Together with other core strategies for maintaining a sharp customer focus, advanced technology is available to provide a better, more transparent process for borrowers that could also be paperless, which is still challenging for many business affiliates to embrace. It is also critical to leverage technology in our social marketing. This allows our company to manage a thin marketing budget and also to reach customers where they are–online. Through drip marketing campaigns and traditional forms of advertising that are seamlessly streamlined to our targeted audience, we are able to extend our reach virtually. Our presence on Facebook, Twitter and LinkedIn, for example, allows us to provide timely and relevant messages to our clients and potential customers. Although they are still in a transitional

year after merging with Trulia, targeting Zillow users by partnering with real estate agents may also be useful to some. The spring market is officially underway, and we are able to be there with our customers during their home search. Developing and maintaining relationships with real estate agents is another important way to generate business. Establishing a mutually beneficial relationship with leading agents who are in the front lines guiding homeowners through the process, is also paramount to sustainability. They are entrusting their clients in your hands and want the comfort of knowing their most prized possession, their clients, are working with skilled, talented and professional brokers. They can be your biggest influencer, and with each smooth closing, you are earning their trust, respect, and hopefully, their

future business. Despite all of these advances and comprehensive strategies, the human touch cannot be replaced by technology, and it is the leading factor that drives success in the mortgage industry. Building trust and offering an exceptional level of service are the leading traits for growing. The resurgence of independent mortgage brokers is here. With the right attitude, tools and environment, anyone can love this business. Even my young daughters are hoping to save homeowners from a financial meltdown … in a pink cape of course. Tom Pasckvale is a managing partner at Top Vine Mortgage Services LLC in Watchung, N.J. Tom may be reached by phone at (844) 545-9251, e-mail TPasckvale@TopVineMTG.com or visit TopVineMTG.com. 61

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“Support your local and state organizations. They are working hard to create a level playing field.”

When I Got My First Job in the Mortgage Industry … By Ralph LoVuolo Sr. How it was back when. We can, together make it the business it should be. When I got my first job in the mortgage business, about 1966 at the age of 25, a real job, as opposed to what I had done before. I reported to Tom Martin at South Jersey Mortgage

Company. He was amazingly wellrounded insofar as knowledge of many things. He was about 15 years older than me and handsome. He told me one day that I should never begin a paragraph with the letter “I,” so that accounts for the beginning of this missive.

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Join our career webinars, posted on Facebook at: www.Facebook.com/CarringtonHomeLoans www.CarringtonHomeLoans/CareerWebinar © Copyright 2007-2016 Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suite s110 & 200A, Anaheim, CA 92806. 800-561-4567. NMLS ID 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access website: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745. CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File 413 0904. CO: To check license status of your mortgage loan originator, visit www.dora.state.co.us/real-estate/index. htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. KS: Supervised Loan License SL.0000313. KY: Mortgage Loan Company License MC21112. MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law. MS: Licensed by the Mississippi Department of Banking and Consumer Finance. Mortgage Lender License 2600. MO: Missouri Company Registration 14-1746-A. In-State Office: Missouri Residential Mortgage Loan Broker License 14-1746-A1. 251 SW Noel, Lees Summit, MO 64063. NH: Licensed by the New Hampshire Banking Department. NJ: Licensed by the N.J. Department of Banking and Insurance. NV: Mortgage Broker License 4068 (Residential Mortgage Origination/Lending). NY: Licensed Mortgage Banker—NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. OH: Ohio Mortgage Broker Act Certificate of Registration MB.804213.000; Ohio Mortgage Loan Act Certificate of Registration SM.501517.000. 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. NMLS ID 2600 (www.nmlsconsumeraccess. org). WA: Consumer Loan License CL-2600. Also licensed in AL, AR, CT, DE, DC, FL, ID, IN, IA, LA, MD, MI, MT, NE, NM, NC, OK, SC, SD, TN, TX, UT, WV, WI, WY. 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 industry 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 government agency. All rights reserved.

Having already acquired some knowledge of the mortgage business when I had been a teenager because my father had been a mortgage broker, I took to the new job and company like a duck to water. At this time of his life, my dad was a builder/contractor/can-do anything kind of guy when it came to building a house. He worked with his hands all his life until a magic day in 1955. He was looking for solid work to build homes for a large company, so he regularly visited companies that fit the bill. On a particular day in the spring of that year, he stopped at a company to introduce himself. When he walked in the door, he heard a few men yelling at each other. He told me they were very angry at each other. It seemed that the company he went to visit had sold 30 lots and homes to various people in the southern part of New Jersey and the people who owned this company had promised that they had the funds available to give the buyers money to buy the lots and the homes and therefore create mortgages for all the buyers. They lied. There were no take outs. There was no money. The owners had lost the contacts they had anticipated and were now being castigated by the salespeople who had sold the houses. The owners of the company were as frustrated as the salespeople, so this useless arguing was having no end. But they continued anyway. My father boldly walked into the room where the noise was coming from, introduced himself and asked what was going on. You might think I’m exaggerating here, but trust me that was just what my father did his entire life. They told him their issue, probably because feelings were running wild and he gave them some confidence that maybe he could help them. He was dressed in work clothes, typical of his station in life. Dirty hands, unkempt hair, torn shirt and pants. He was 39-years-old and full of piss and vinegar. He was superman and believed he could do anything. He didn’t finish his sopho-

more year in high school and didn’t care what you thought. As they told him their silly problem, silly only because they had nothing to lose, the synapses started to hit on 12 cylinders. They were apparently thinking, “Geez … look at this guy, what harm would we be doing by telling him what we are not doing.” Then, in his brash and controlling manner, he told them he could get them the money. That it wouldn’t cost them anything, but if he did get the money, they needed to promise him the rights to build all the houses. They said sure and as the conversation continued, one of the men put together some of the paperwork needed. You see, what my father had was a connection to a mortgage company in the area. He had done work for some of their builders and he had developed a relationship with the officers. The next morning, my dad put on his only suit, a shiny gray suit that was maybe worn about 10 times. He had paperwork to bring to the mortgage company and was going there to make a deal. He made the deal. They agreed to do all 30 loans. They also agreed to pay him $300 for every loan they closed. Since all that was needed were the deeds to each property together with the contracts to build and since they would not be disbursing all the money, the closings could be done pretty quickly. I don’t remember what the time frame was, but still with his shiny suit, he closed the loans in two backto-back days shortly thereafter. What I do remember was when he walked in the house on a Friday evening and called my mother, sister and me into his bedroom. He had $9,000 in $100 bills and threw the money into the air and just screamed at how happy he was and what we were going to do with the money. That $9,000 was more money than he had made for the previous year and any other year of his life. He opened a mortgage company,

a mortgage brokerage company, continued his contracting business, studied and passed the New Jersey real estate license test, opened a real estate office and became licensed with the mortgage company that had made all those loans. He developed relationships with lenders who admired him for his business sense and ability to keep his word with them. There were two savings and loan associations that had him co-sign every note for every loan he placed with them. They never lost a dime and he acquired a portfolio of properties that became his when the mortgagor would stop making the payments. His life was as a mortgage broker. He taught me so much that I still talk about some of the things he did. I’m convinced that RESPA and Regulation

Z came into existence because of him. I wanted to be him. I knew it and I worked very hard to be that independent-minded often boisterous definitely bull in a china shop person. There was never a time that I didn’t know what I wanted to be. I knew that being a mortgage broker was the king of the hill. I wanted to be the king. When I had the opportunity to do that, become a mortgage broker, I put my heart and soul into it. There were times I wanted to be able to close my own loans, but I never pursued that dream with all my energy. In 1994, I even wrote a paper castigating mortgage brokers as being second-class citizens, envious of mortgage brokers and wanting to be one but never quite getting there.

The article is still here in my computer and probably will be for some time. I was wrong to write it. Mortgage brokers are not the people who were like my father. They are better. Here is what I send as a message to all mortgage brokers: Support your local and state organizations. They are working hard to create a level playing field. Go to their meetings, participate in their committees, learn what you need to know to be more professional, more learned. The only way any government or agency is going to listen to your needs and level the playing field is when all of you have distinguished yourselves as business people with high levels of integrity. There were many people who opened mortgage brokerage operations in the late 1990s. Most of them

are gone, what are left have become the bedrock of our industry. Continue to grow your businesses with the nimbleness it takes to make decisions. Train your salespeople, don’t trust in them becoming self-taught. Teach them yourself or hire someone who will teach them. Show them how to make money the right way. Hire someone who can do that if you cannot. Ralph LoVuolo Sr. has more than 50 years in the mortgage Industry, with the last 30 as a coach. He is past president and founder of the New York Association of Mortgage Brokers, and long-time member of NAMB—The Association of Mortgage Professionals. He can be reached by phone at (917) 576-1230 or e-mail ralph@mortgagemotivator.com. 63

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VA vs. QM If it’s not broke don’t fix it! By Richard M. Bettencourt Jr., CRMS, CMHS

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Nearly six years ago, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was created with the hopes of strengthening our financial sector, protecting consumers, and requiring the major players of the mortgage industry to change the way they do business. Did it accomplish its goal? I think the majority would say the industry is in a better place, however, there were several pieces of legislation already in place prior to Dodd-Frank’s QM Rule that had a monumental and beneficial impact on the market. So, to say “QM saved the day!” is a bit out of line. Yes, the years leading up to Dodd-Frank was wrought with poor loan options, unscrupulous professionals; and when I say unscrupulous professionals I mean professionals in every facet of the business. There were bad mortgage professionals, bad real estate agents, bad appraisers, bad attorneys, bad lenders, and bad consumers who decided to forego reasonable thinking and decided to purchase/refinance that home with any means necessary. There’s no doubt that many consumers were unfairly treated and subjected to predatory forms of lending; however, I think it’s important to point out that not every consumer that lost their house during those volatile years did so because some loan officer or real estate agent held their hand and made them sign the mortgage application, mortgage and note. Fortunately, as a broker during those years, I didn’t originate many sub-prime or Alt-A loans; my brother-in-law and partner was smart enough to realize the benefit of government lending and we were one of the few mortgage brokers in area of operations to have our mini-eagle. I also saw the benefit of working within a mortgage option that not only helped one of the most important communities in our country, our veterans, but it also was a loan option that was very easy to originate! So, when Dodd-Frank was passed in 2010, I wondered what would the Veterans Administration do to comply with Dodd-Frank, the CFPB, the Qualified Mortgage Rule, and the Ability-to-Repay provision? You know what they did? They did nearly nothing and I loved every minute of it! Here’s the VA’s response to creating its own VA Qualified Mortgage Rule: “VA defines QM to mean any loan that is guaranteed, insured of made by VA; however CERTAIN limitations apply to Interest Rate Reduction Refinance Loans (IRRRLs).”1 So, what changed with the IRRRL’s? It pertains to the question: Will the IRRRL be considered a Safe Harbor QM? Based on the FAQ’s in Exhibit A of Circular 2616-03, if the IRRRL meets the following provisions, it will be considered a Safe Harbor QM Loan: 1. The loan being refinanced was originated at least six months before the new loan’s closing, at least six payments have been made on the original loan, and the Veteran has not been more than 30 days past due during the six months preceding the new loan’s closing date; and 2. All fees and charges financed as part of the loan or paid at closing (i.e., all expenses associated with the cost of the refinance) are in compliance with 38 C.F.R. §36.4313, Circular 26-16-03 Jan. 20, 2016 Exhibit A 3 and such fees are shown to be recouped within 36 months of the new loan closing. Note that VA excepts from the recoupment requirement, the following three types of IRRRLs: (1) Mortgages that include energy efficient improvements; (2) Loans that are being refinanced from an adjustable-rate to a fixed-rate; and (3) Loans which a refinance a fixed-rate loan into another fixed-rate loan of a shorter duration; and continued on page 79

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n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Loan amounts from $250k to $1 Million

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Building on the Obama Administra-tion’s goal to expand high speed broadband to all Americans, the U.S. Department of Housing & Urban Development (HUD) Secretary Julián Castro and Google Fiber Vice President Dennis Kish, announced that the West Bluff Townhomes in Kansas City, Mo. will be the first public housing development to be connected to Google Fiber’s ultra-high speed (gigabit speed, or up to 1000 mbps) Internet through the ConnectHome Initiative. The 100 housing units at West Bluff are now able to sign up for Google Fiber gigabit speed internet free of cost. Over the next several months, gigabit service will be available to another 1,300 public housing units in the Kansas City metro area. Additionally, Google Fiber will be bringing those high speeds to HUD assisted and affordable housing in all fiber cities, including the Connect Home fiber cities of Atlanta; Durham, N.C.;San Antonio, Texas; and Nashville, Tenn. ConnectHome is a public-private collaboration to narrow the digital divide for families with school-age children who live in HUD-assisted housing. Through ConnectHome, Internet service providers, non-profits and the private sector will offer broadband access, technical training, digital literacy programs, and devices for residents in assisted housing units in 28 communities across the nation. ConnectHome creates a platform to help ensure that students have access to highspeed Internet for studying and doing their homework at home, as well as in school. “For far too many low-income families, and especially their children, connecting to the Web remains a distant dream,” said Castro. “Knowledge and education are the currency of this 21st Century economy, and Google Fiber is helping ensure that all children, no matter where they live, have access to the tools they need to be competitive in their schoolwork and close the digital divide.” “At Google Fiber, we believe that superfast speeds and access to home broadband can move entire communities forward. That’s why we’ve partnered with ConnectHome to bring some of the fastest Internet speeds to those who need it most. Families in these properties will be able to access gigabit Internet service, at no cost to the housing authority or to residents,” said Kish. Google Fiber is launching this $0/month gigabit Internet service for select affordable housing properties in all of its current and future markets. The company is working with local providers to identify which properties it will con-

nect in future cities. Inspired by its early success of the work with the Housing Authority for the City of Austin, Google Fiber is complementing its free gigabit Internet service by working with local partners to make new investments in computer labs and digital literacy classes so residents learn the skills they need to get online. Since 2009, the private and public sectors have invested more than $260 billion into new broadband infrastructure, and three in four Americans now use broadband at home. Despite this significant

progress, one in four American families still don’t access the internet at home, particularly lower-income families with children. While nearly two-thirds of America’s lowest-income households own a computer, less than half have a home internet subscription. HUD’s ConnectHome initiative strives to ensure that students can access the same level of high-speed Internet at home that they possess in their classrooms. Eight nationwide Internet Service Providers, including Google Fiber, Cherokee Communications, Pine Telephone, Suddenlink Communications, Vyve Broadband, CenturyLink, Cox Communications and Sprint, have announced they are partnering with mayors, public housing authorities, non-

#Relationships: Planning, Budgeting, Building Consistency Are Not Optional By Amy Hausman

ooking to significantly increase your branch’s loan production? It’s not an impossible wish. The keys are training, marketing dollars and consistency. Assembling those parts into a greater whole can boost production—and build a branch manager and loan officer team that exceeds expectations. Yes, it’s about hiring smart. Yes, it’s about how you train. And, yes, expectations are critical to ultimately close more mortgage applications. You know all that. So what’s the secret sauce?

It’s all about relationships Loan officers who have a plan to create true relationships with their customers—and work the plan diligently— not only boost their own income, but enrich your entire branch’s reputation and will increase the number of mortgages processed. Sure, every loan officer will tell you the LO builds rapport with the people they work with daily. And, every loan officer will say they create a relationship with their customers. But can they prove it? If an LO hems and haws then shows

you the holiday card sent to a December mailing list, that’s not a relationship. It’s a greeting card. If they stammer and show you their social media accounts ... and how they reply to messages and follow comments swiftly, it’s not a relationship … it’s virtual snippets. If they trot out a parade of closing gifts—flowers, candy or a logo pen or Starbuck’s gift card—those are oneshots and not a relationship. Relationships with customers who have gotten a mortgage through your office are built slowly and steadily over time with repetition and information and trust.

Building trust through useful information Relationships, like flowering plants, blossom through constant contact with current and past clients, and are fertilized with solid, usable mortgage, finance and lending information. One source of useful information is a regular monthly or bimonthly newsletter—sent both by mail and by e-mail is ideal—that covers mortgage and financial topics that home-

buyers and homeowners are eager to learn about. Be sure the newsletter reports on the nitty gritty of how to apply for a mortgage: What kind of credit scores are necessary, how to boost a credit score, understanding the terminology of mortgages, when it makes sense to refinance, the range of loan programs available, how financial missteps can kill loan approvals. Useful information opens a line of trusted communication between consumer and lender. Beyond content, branding is critical. Every edition must be designed to keep the originator’s name top of mind for the customer who has already dealt with your company (and hopefully already had a positive experience). Why? That client’s next act will be to recommend your firm to friends, family, co-workers, neighbors and other contacts. After all, referrals happen far more often than a refinancing or a purchase. In fact, a referral pipeline—at no extra cost—is the ultimate reason to ask for referrals every time you send out educational marketing material. Lay the groundwork by asking your clients to call with loan or financing

questions or pass along your company’s loan officer/name/number/email to anyone they know who is thinking of buying a home or refinancing. That plants the seed to action. Don’t stop there. It’s also important to use marketing with a compelling “call to action.” Call to action—or what marketing gurus call “response marketing”— generates business faster than “brand marketing” (handing out a notepad with your name on it)—and has results that are far easier to track. What is a call to action? Offer something of value that only a qualified prospect would respond to get. A call to action is as simple as an offer of information or as a premium or eBook publication or a personal service for pre-qualification or preapproval.

Client list or asset? If your client list is not that polished and maybe missing some vital contact data, you’re not alone. It’s not uncommon for client lists to be a mess and fractured, especially if originators are responsible for maintaining their own client lists.

Fix that. If the goal is to build relationships and generate repeat business and referrals, then your data absolutely must be as complete, detailed and as accurate as only a single database can deliver. Avoid the most common mistake of all: garbage in, garbage out. The paramount client list, if managed correctly, can become a huge asset for your company, generating business repeatedly from every strong relationship...one perfect record at a time. Remember it’s more than securing names, addresses, phone numbers, email and explicit permission to contact clients with further info. Make it clear that you’re not going to bombard contacts with recipes and puff quotes overlaid on cute-cat photography. Instead, promise to provide mortgage and financing information that will help clients make wise financial decisions when it comes to buying a home or refinancing their mortgage. Make quality your job number one. Quality in your two-way communication. Quality as their sole mortgage expert.

expertise you create an informed con- marketing budget for postage and sumer who is also a better customer. online distribution. That way the branch can maintain the client list Spend money and continue to build and enhance relationships with company clients to make money Repeat after me: Being in the mort- long after an individual loan officer gage business without investing in leaves or retires. Loan officers who marketing is like winking in the dark. pay for their own marketing tend to I know I’m doing it. But nobody else keep their data list themselves. That knows I’m here. Bottom line: To work means that client business—and a a plan to market to your database, lifetime of referrals from those you need a marketing budget. Once clients—can walk out the door if you’ve built a master database for all those LOs move on to another place of clients, you’ll need to support your employment at any time. marketing efforts with dollars to build those client relationships. Are you ready? One proven win-win formula is to Contacting a client to make them have the branch help loan officers by smile is important. Making a client providing marketing tools and/or a smile and then return to work with

your office again and refer new business your way and praise your services is priceless. It bears repeating: Fostering a trusting relationship with your clients is invaluable. In fact, to paraphrase Red Adair, if you think marketing is expensive, wait until you try to run a branch business without it. The relationships you plan, budget and consistently build with clients will reward you with increased business in 2016 and beyond! Amy Hausman is managing editor and contributing writer for GooderGroup.com, a publisher of marketing materials for mortgage and real estate professionals since 1983 based in Fairfax, Va.

Sharing your expertise

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When you educate your clients about the mortgage process, it’s a win-win situation. You put your best professional foot forward and the clients benefit by having the right info to make smart decisions for their situation when obtaining a mortgage. Slowly, the trust grows by sharing your knowledge. Steadily, clients and referrals will rely on you as their mortgage expert. Here is the litmus test: Who is a more desirable customer? Client A who hasn’t ever bought a home and relies on you to explain every step of the process and then calls and texts constantly all day long wanting answers they could find with a Google search, or who sends you long rambling e-mails late into the night that require a first-thing-in-themorning reply. Then at first light, showing up at your office as soon as the doors open to bombard you with more questions … while never getting off the fence to complete an app or get their documents to you, or, worse yet, going with another lender after you’ve given them a college education in mortgage financing. Or, would you prefer … Client B who hasn’t ever bought a home either and relies on you to show the way while asking solid questions related to information you’ve already provided over the months in your newsletter … which has shown the importance of providing documentation quickly, plus returning your calls/texts/e-mails immediately and are being as eager to get to closing as you are. You’ve built a relationship with Client B even before you’ve started working with that person! Simply put, when you market using education, information and

More at Bats With Sales Acceleration By Brent Emler Fifteen years ago, SalesForce flipped the sales process on its head by offering to rent customer relationship (CRM) software instead of selling it. Software-as-a-Service (SaaS), has since become the standard for all software sales. SalesForce didn’t just pioneer how CRMs are sold though, they completely changed the sales process by adding organizational level integration and automation. Sales has always been about the process of individual sales people connecting clients to the right products and services at the right time. Before SalesForce salespeople were on their own to develop and manage their sales process. This is the reason there has always been such a disparity between the top sales echelon and the bottom. Some

salespeople are exceptional relationship builders, some a great at asking the right questions, and some are great at process; it’s rare to find all three qualities in one salesperson. SalesForce brought automation into the customer lifecycle, which meant companies could set up a standardized sales process organization wide.

The Internet of things Fast forward 15 years and sales automation has been replaced by sales acceleration. What’s the difference? The difference is all around you. Our world is so incredibly connected now that we have a new way of describing how systems, software, products, services and most importantly, people connect. By now you’ve heard of the concept of “The Internet of Things,” it’s loosely described as the network of objects, devices, services, vehicles, and software are embedded with software

code, electronics, sensors and network connectivity, which enables these objects and software solutions to collect and exchange data. Sales automation organized and normalized the sales process. Sales acceleration adds depth, efficiency, and further integrates the customer into the process. The Internet of Things means sales automation tools, like SalesForce, can connect with accounting systems, marketing systems, sales enablement services, business intelligence with behavioral modeling, and an endless number of platforms to dramatically improve pull through rates and the customer experience. In many ways, SalesForce created the idea of interconnectivity early on by offering their CRM in the cloud and opening their doors to any third-party software developer who had the inclination and development chops to provide bolt on solutions to their CRM solution. There are

now 2,800 applications on AppExchange. SalesForce is an amazing tool, but it’s not built for the mortgage space. That’s why applications like Velocify’s Pulse, an AppExchange application, are so incredibly important to our industry.

Why does the mortgage industry need sales acceleration? What makes sales acceleration so important, especially in the mortgage industry? I asked Chris Backe, director of business development at Velocify, about sales acceleration. “Mortgage originators are essentially all selling the same product and mortgage shoppers are significantly more discerning than ever before,” said Backe. “We haven’t even hit full stride with Millennials, and we’re already seeing a dramatic shift in how mortgage shoppers behave. They’re more perceptive, they

want immediate feedback, and they want choices.” In this new reality where the buyer is in the driver’s seat, it’s important for loan officers to adjust. “The old paradigm of a long sales cycle including the laborious back and forth communication about products and scenarios is evolving,” said Backe. “Today’s lenders need to be ready to engage with buyers through a very digital sales cycle with on demand sales enablement that keeps originators and prospects tightly connected.” Chris went on to talk about the basic pillars of sales acceleration: l l l l l

Speed to contact Activity prioritization Intelligent sales workflow Seamless software integration Intelligent lead distribution

Is sales acceleration a panacea? When I managed a team of salespeople the most frustrating thing I would hear is, “I need more leads,” or “Who should I call?” If I had sales acceleration tools I could have focused my attention on

training my sales staff on how our products solved client’s needs or how to handle objections or when and how to ask closing questions. Sales acceleration is not a panacea, it’s not going to ask closing questions for your originators, it’s not going to ensure your salespeople are listening to objections and handling them as a professional salesperson would. It will, though, put them in a position to do so hundreds of times more often per month than without it. Brent Emler is director of sales and marketing at Velma.com, a customizable marketing software provider exclusive to the mortgage industry. He may be reached by e-mail at brent@velma.com.

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A tale of two sales I was asked to sit in with a large mortgage lender to watch their sales operation and process. They are one of the largest mortgage bankers in the country spending hundreds of thousands of dollars on leads and their call center environment. An impressive outer shell but as I observed the interaction between the salespeople and their prospects I was amazed how often they would get a bite from a prospect only to tell them they would email the prospect “in a little while” with some mortgage scenarios and then give them a call back to continue the conversation. They just threw that bite back into the ocean, no doubt losing a huge portion of those opportunities.

she does best, sell. She doesn’t need to remember the birthday, buy and send a birthday card, send an e-mail, notice the client opened it, decide how important a call would be, and then pick up the phone. Sales acceleration platforms offer this level of prospecting depth, interactivity, and efficiency with the click of a button. Click a button and you’re up to bat again.

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If this sounds like direct-to-consumer lexicon, you’re right. In many ways the direct-to-consumer business model is ahead of the distributed retail model in terms of sales acceleration but Velocify and other sales and marketing automation tools are combining to change that paradigm. Sales acceleration allows mortgage lenders to put their sales people in the best possible position to make a sale. Think of it in terms of America’s favorite sport, baseball. Sales acceleration isn’t necessarily going to turn all of your singles and doubles hitters into home run hitters, but as the coach, your job is to get everyone as many at bats as possible. Sales acceleration not only offers hundreds more “at bats” a year for your team but it also gives them an advanced scouting report for every attempt at the plate. Connecting your lead databases, servicing portfolios, past customer databases, marketing automation, lead distribution, pricing engines, automated dialers, loan origination software and sales presentation tools offers mortgage lenders the opportunity to create consistent, repeatable processes that ensure salespeople aren’t sitting around wondering what to do next; more “at bats.” Sales acceleration isn’t going to ask the closing questions sales people have to ask to be successful but it’s going to get them to that place in customer engagement quicker and more often.

Consider instead a scenario where a past clients birthday is going to arrive in a few days. What if your sales acceleration platform was able to know this in advance because it received the client’s birthday information from the loan origination software, and then the marketing automation sent out a beautiful birthday card in the mail, as well as sent out a birthday e-mail on the day of the birthday, and then prioritized that client as a top priority if they opened the email, and then if the client mentions a potential interest in refinancing during the call, provides a real-time refinance presentation tool to help engage deeply with that prospect’s interest. All of this and the only thing the sales person needs to do is what

TALES FROM THE CL By Andrew Liput The mortgage closing transaction is the single largest financial transaction in the lives of most consumers, and it is also the riskiest stage of the mortgage process for lenders. While the vast majority of lawyers and notaries and title agents are experienced, ethical and diligent professionals, for a few the role of closing agent is too tempting a lure for selfish criminal intent. This column addresses the good, the bad and the ugly!

Top industry news …

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The Commonwealth of Virginia is proposing sweeping changes to its settlement agent regulations, affecting the registration, licensing, insurance, auditing and other requirements for anyone closing a residential mortgage (except for attorneys and law firms). FHA lawsuit settlements continue to rock the industry as Wells Fargo is the latest to agree to pay for allegedly defective loans stemming from a 2012 lawsuit which accused the industry giant of engaging in “reckless” mortgage origination and underwriting practices from 2001-2005. The price tag … $1.2 billion. Ouch! Better news for lenders was the affirmation by the Tenth Circuit Court of Appeals in a hotly contested round of cases in Colorado between originators and Lehman and Aurora over buybacks that the statute of limitations begins to run when loans are sold, and not when the investors paid Fannie and Freddie over the defects and subsequent demand for indemnification. Credit unions have to worry about the Consumer Financial Protection Bureau (CFPB) as well. The CFPB issued a bulletin recently warning credit unions that if they fail to meet accuracy obligations when reporting negative account histories to credit reporting companies, the result could be action taken by the Bureau. The bulletin stated that credit unions must have systems in place to ensure accuracy when they pass on information, such as negative account histories, to checking account verification and other credit reporting companies.

You can’t make this stuff up! This month, like every month, we feature some of the latest news about mortgage and closing fraud affecting our industry. These are real cases from around the country, only the names have been redacted to avoid threats of frivolous legal action … l A Massachusetts real estate agent pleaded guilty to wire fraud in connection to a scheme to defraud a couple of the $200,000 deposit they

LOSING TABLE l

Special fraud alert update

The Federal Internet Crime Complaint Center (IC3.gov) suggests the following measures to help protect you and your business from becoming victims of the BEC scam: l Avoid free Web-based e-mail: Establish a company Web site domain and use it to establish company e-mail accounts in lieu of free, Web-based accounts. l Be careful what is posted to social media and company Web sites, especially job duties/descriptions, hierarchal information, and out of office details. l Be suspicious of requests for secrecy or pressure to take action quickly. l Consider additional IT and financial security procedures and two-step verification processes.

On the lighter side … A 20-something had just opened his own branch office for a regional mortgage lender. He rented a beautiful space overlooking the downtown skyline and had it furnished with leather chairs, antique tables and expensive artwork. Sitting there, he saw a man come into the outer office. Wishing to appear the hot shot, the mortgage loan originator picked up the phone and started to pretend that he had a big deal working. He threw huge figures around and made giant commitments. Finally, he hung up and asked the visitor, “Can I help you?” The man said, “Yeah, I’ve come to activate your phone lines.” Andrew Liput has been a corporate, real estate and banking attorney for nearly 30 years He is the founder, CEO and president of Secure Insight, the first data intelligence and risk analytics firm to offer specialized vendor management services to mortgage lenders and banks nationwide addressing settlement agent risk. He can be reached by e-mail at ALiput@SecureInsight.com.

A Message From MAA Chairman Fowler Williams

y name is Fowler Williams, and I am president of Crescent Mortgage in Atlanta. I am honored to serve as chairman of the Mortgage Action Alliance (MAA), a voluntary, non-partisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association (MBA). MAA is dedicated to strengthening the industry’s voice and lobbying power in Washington, D.C. and state capitals across America. I would like to highlight several issues that will be a critical part of MBA’s residential advocacy agenda in 2016. It is important to emphasize that the real estate finance industry continues to deal with a host of complex policy challenges, and every issue being addressed by the association cannot possibly be summarized below. Instead, the current regulatory and/or legislative climate has led the MBA to expect that the following—at a minimum—will be central focuses this year: l Implementation of the new federal Home Mortgage Disclosure Act (HMDA) rule, with MBA helping its members address implementation costs, increased data collection and reporting requirements, new privacy and data security concerns, as well as increased litigation risks; l The need for written policy clarifications and supervisory guidance, to restore certainty and clarity to the regulatory “rules of the road” and ensure workable mortgage markets; l Continued efforts to advance meaningful regulatory relief legislation for lenders of all sizes and business models, including changes to the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act to permit transitional origination authority (HR 2121); l Robust discussions on the future state of housing finance, including potential changes to Fannie Mae and Freddie Mac (the GSEs), as well as secondary market improvements that can be made more immediately outside of the federal legislative process, while Congress continues to mull legislative options; and l The continued need for policy solutions, either through legislation or regulation, to improve access to affordable mortgage credit, especially for first-time homebuyers and low- and moderate-income consumers. The industry’s ability to navigate and manage these policy challenges will be critical to our efforts to serve consumers and responsibly grow our businesses. In service to its members, MBA will be leading the way through advocacy, research and education. Please note that a broader snapshot of MBA’s 2016 residential issue priorities will be made available in the coming weeks. Getting involved with MAA allows industry professionals to play an active role in how laws and regulations that affect the industry and consumers are created and carried out by lobbying and building relationships with policymakers. It only takes a moment to get started, and you do not have to be a member of MBA to enroll. The larger the group, the louder the voice! If you would like to run an MAA campaign, please contact Peter Shapiro at (202) 557-2933 or e-mail PShapiro@MBA.org to receive an enrollment campaign kit and learn more about how you can engage your colleagues and employees in MBA’s advocacy programs. Real estate finance industry professionals who wish to join or learn more about MAA can do so at http://Action.MBA.org. If you have any questions regarding MBA’s advocacy programs, please contact MBA’s Director of Political Affairs Annie Gawkowski at (202) 557-2816 or e-mail AGawkowski@MBA.org. Fowler Williams is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. He is also president of Atlanta, Ga.-based Crescent Mortgage. He may be reached by phone at (800) 851-0263 or e-mail FWilliams@CrescentMortgage.net.

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Last month, we reported that real estate agents, title and settlement offices and even lenders reported that they had been victimized by hackers stealing title and closing agent e-mail addresses and slightly modifying them, then sending modified wiring instructions to their closing departments. The name given to these new fraud schemes is Business Email-Compromise or “BEC.” Recently, a list was circulated of common characteristics of BEC fraud: l Businesses and personnel using open source e-mail are most targeted. l Individuals responsible for handling wire transfers within a specific business are targeted. l Spoofed e-mails very closely mimic a legitimate e-mail request. l Hacked e-mails often occur with a personal e-mail account. l Fraudulent e-mail requests for a wire transfer are well-worded, specific to

the business being victimized, and do not raise suspicions to the legitimacy of the request. The phrases “code to admin expenses” or “urgent wire transfer” were reported by victims in some of the fraudulent e-mail requests. The amount of the fraudulent wire transfer request is business-specific; therefore, dollar amounts requested are similar to normal business transaction amounts so as to not raise doubt. Fraudulent e-mails received have coincided with business travel dates for executives whose e-mails were spoofed. Victims report that IP addresses frequently trace back to free domain registrars.

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paid to purchase three properties through his real estate office. A New Jersey developer was sentenced to 15 months in prison for his role in a multi-million dollar mortgage fraud scheme that used phony documents and straw buyers to make illegal profits on overdeveloped condominiums in Wildwood, N.J. An attorney in Maryland was sentenced to a year and a day in prison for conspiring to commit bank fraud and two counts of making a false statement to a bank, and also ordered to forfeit $696,517 and pay restitution of nearly $1 million. The attorney was a settlement attorney in real estate transactions and conducted real estate settlements on at least seven occasions involving a co-conspirator whose identity she concealed from the financial institution loaning the funds for the transaction. The attorney filed mortgages on behalf of the co-conspirator, frequently at the last minute, which enabled her to pay the sales proceeds from the transaction to the co-conspirator and not to the named seller. The Texas Department of Insurance seized a Dallas-area title insurance agency after allegations surfaced that the company’s owner disappeared with millions of customers’ money. A New Jersey title agent and owner of a Stewart Title agency admitted to carrying out a mortgage fraud scheme in which she obtained seven loans, totaling more than $3.7 million, on two properties located in Wood-Ridge, and Belvidere, N.J.

MBA’s Mortgage Action Alliance

heard on the street continued from page 46

TRID Questions By Andy W. Harris, CRMS I recently sent a couple of questions to the Consumer Financial Protection Bureau (CFPB) as it relates to the unintended consequences around the new TRID disclosures. While I prefer the new forms and feel they are better, it is embarrassing being forced to disclose inaccurate non-buyer fee data on the Loan Estimate (LE) for states in which I am licensed (inflated lender’s title insurance, owner’s policy, etc.). I have been used to being extremely accurate and detailed with quotes, but even with the owner’s title policy earlier on the Good Faith Estimate (GFE), it did not reflect cash to close inaccurately which is the problem. I am sharing my questions and comments below on the LE and Closing Disclosure (CD), and please share any feedback or thoughts you have had when dealing through these issues with your clients or trying to explain why the cash to close or fees are inaccurate.

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72 n Question: Due to consumers being provided with inaccurate fees, lack of transparency, and inaccurate downpayment estimates causing mass consumer confusion on every Loan Estimate (LE), will the CFPB amend and clarify rules to allow creditors to quote accurate third party title fees to the consumers related to their state on the LE? Does the CFPB support accurate fee quotes to consumers or must every LE in the country be inflated with inaccurate fees and inaccurate downpayment estimates for the foreseeable future? Would the CFPB agree that this was not the intention of the LE, and in fact, the exact opposite intention when writing the new rules? n Question: The consumer should have rights, including the right to waive or reduce the three-day cool-off period. Removing rights from consumers that are informed and applying delays on their closing is not protecting them or better informing them. Because the consumer is protected already on every residential mortgage loan with zero and limited tolerances, will the CFPB remove the three-day cool-off period for low-risk QM fixed-rate loans without risky features? Have they considered only applying this rule to loans that carry these risky features defined specifically on the forms and the overall goal of this cool off period to begin with? In addition, has the CFPB considered removing on all refinance transactions considering there is already a three-day rescission for this very reason on right to cancel? Rather than protecting the consumer, these rules harm the consumer. These unintended consequences can result in costly contract and rate lock issues, resulting in higher costs to the consumer. It has also created a very negative experience with 100 percent of consumers we’ve dealt with when addressing the threeday hold after signing the CD before they can close. Every consumer we have dealt with has complained about it, in addition to the turmoil it has placed in the housing market and higher costs they now face as a result of it.

Are you an originator? Send in your stories! To have topics considered in future editions, please e-mail me with “OrigiNation” in the Subject Line at AHarris@VantageMortgageGroup.com. These can be confidential or your name and company can be referenced if you wish. Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and past president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.

This marks the third acquisition for Chronos Solutions since early 2015. In January 2015, the firm acquired Realtybid.com, an online real estate auction marketplace. In December 2015, Chronos Solutions announced the acquisition of Cogent Road, a credit, verification and origination technologybased business. Martin notes that Realtybid.com has already grown and thrived under Chronos’ ownership. “Our acquisitions are carefully selected to complement our unique approach to real estate finance services,” Martin said. “Our ability to deliver multiple service offerings and scale to meet the needs of a business of any size are what have led to our success. The acquisition of Commerce Title will only strengthen the depth and breadth of our suite of services.”

Firstsource Group to Purchase ISGN’s BPO Division

Firstsource Group USA Inc., a whollyowned subsidiary of Firstsource, a RPSanjiv Goenka Group Company and global provider of customized business process management (BPM) services, has announced that it has signed a definitive agreement with ISGN, a provider of end-to-end technology solutions to the U.S. mortgage industry, to buy its Business Process Outsourcing (BPO) business. The transaction is subject to customary closing conditions and is expected to close within the next four months. This transaction includes outsourced mortgage origination and mortgage servicing, title and settlement services and the valuation business of ISGN. Firstsource specializes in BPM solutions that serve organizations in the banking, financial services, insurance, healthcare, telecommunications and media verticals. “The acquisition marks Firstsource’s penetration into the growing U.S. mortgage BPO market. ISGN’s deep knowledge in the mortgage outsourcing space coupled with a set of marquee customers provides us with significant opportunities to cross-sell capabilities and leverage our global relationships. We welcome ISGN employees to the Firstsource family and wish them continued success,” said Sanjiv Goenka, chairman of Firstsource. Strengthening Firstsource’s services capabilities and offerings suite, this acquisition provides clients with a competitive and adaptive edge in a market that is constantly witnessing regulatory changes and evolving customer behavior. “We are extremely excited by this transaction and the capabilities that Firstsource brings to our prestigious

client base. The global capabilities of Firstsource coupled with the domain depth of ISGN represents a winning combination for the market that is seeking transformation solutions,” said Amit Kothiyal, CEO of ISGN. “We are very pleased with this outcome and the value it brings to both our clients and our talented team.”

LRES DirectConnect Begins Integration With Mercury Network

LRES has announced that its LRES DirectConnect integration hub now fully integrates with Mercury Network, a software platform used by more than 700 lenders and AMCs to manage their collateral valuation workflow. Through this partnership, LRES and Mercury Network offer seamless communication of appraisal orders for customers by delivering collateral valuation reports and supporting data in the MISMO industry-standard format. The integration provides end-to-end automated connectivity while delivering reports and data for auditing and compliance purposes via a single management platform for faster appraisal data exchange. LRES has the ability to receive appraisal order requests and order modifications from clients directly through the Mercury Network and electronically delivers those orders into its proprietary LRES LINK order management platform. “Our partnership with LRES allows for a faster valuation ordering process for lenders in a single, easily configurable interface,” said Adam Campbell, integration specialist at Mercury Network. “LRES’ integration with Mercury Network focuses on appraisal quality management and enhanced operational efficiency throughout the entire valuation lifecycle,” said Roger Beane, CEO of LRES.

Black Knight’s Closing Insight and Exchange Technologies Awarded MISMO Premiere Certification

MISMO is pleased to announce that the Closing Insight technology and Exchange services platform from Black Knight Financial Services have been awarded Premiere Level certification under the MISMO Software Certification Program. These solutions are among the first to receive the coveted Premiere designation from MISMO. continued on page 82

Recruiting, Training and Mentoring Corner Should You Hire a College Graduate to Originate? By Dave Hershman

Unfamiliarity with situations The graduate has not faced the financial decisions experienced homeowners are facing in which homeownership can be an integral part of. This might include retirement strategies, saving for their childrenâ&#x20AC;&#x2122;s college, raising kids and more.

Lack of sales experience The graduate is not likely to have sales experience nor the experience of living on commission. They are likely not to have high overhead, which means they can survive on a low salary or draw. But they are not likely to possess the motivation of being a top level earner.

Small sphere of influence The graduate is not likely to have a large

sphere to access at this juncture in their life. This might be different perhaps if the graduateâ&#x20AC;&#x2122;s father or mother is a top-producing real estate agent who will mentor them and give them access to their sphere. Conversely, there are tens of thousands experienced individuals available who perhaps have owned businesses, been in sales before, have large spheres and have owned homes. Many are looking for the right career with the potential earnings they have not seen in other fields. They are more likely to be settled and know what they want. If I were advising a college graduate who really wanted to become a loan officer, I would advise them to start with an in-house company that will provide them with refinance leads. They should begin building a referral clientele through their pipeline management and closings and

Dave Hershman is a top author in the mortgage industry with seven books published. He is also the founder of the OriginationPro Marketing System, and currently the director of branch support for McLean Mortgage. He may be reached by e-mail at dave@hershmangroup.com or visit OriginationPro.com.

pay just Â˝ % premium* for their state mortgage license bonds.

Do you?

The graduate is not likely a homeowner and has never been one If you were a real estate agent, would you partner with a renter loan officer to try to convince first time buyers to purchase a home? The number tool in this regard is empathy, including relating oneâ&#x20AC;&#x2122;s own first-time homebuyer story.

* premium rate based on bond amount and subject to underwriting

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Thousands of mortgage professionals

The graduate has not made their life choice of a career as of yet Today, graduates will go through several jobs because they find their life choice. Remember, most graduates will not be introduced to the career of mortgages in college. It is a better choice to expose them to several jobs within a bank or mortgage company and see where they gravitate first. Originating is like building a business and it takes time. The person must be fully committed to make this happen.

with the right coaching and training, they will be able to see the opportunities. On the other hand, if the in-house situation is one which puts them in the middle of a real estate office, my opinion would be the same as a street loan officer. Let them get operational experience and purchase a home while they build their sphere. Loan officers are a great first or second step in this industry. As a matter of fact, some of the best loan officers I hired started out as processors in the industry. Good processors know what it takes to get loans closed.

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One tact some banks and mortgage companies are taking with regard to combating the aging of our sales force is to hire college graduates to become originators. We are not talking about prospects with college degrees, but those who have recently graduated with degrees. Is it a good idea to use this strategy? My answer would be yes and no. Yes, it is a great strategy to point someone towards a career in the lending industry. There are a variety of jobs they can learn as they find their wayâ&#x20AC;&#x201C;from loan officer assistant to closing. With the proper training, this is a great way to continue to build a staff as a counter-balance against attrition occurring through retirements and other factors. On the other hand, to hire graduates as a commissioned loan officer, especially a street loan officer, is typically a mistake in my mind. There are several reasons for this conclusion:

This is like having someone sell cars who has never owned or driven a car.

NMP

MORTGAGE

Tom Marinaro

NationalMortgageProfessional.com

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PROFES

President Residential Home Funding BY PHIL HALL

om Marinaro came into the mortgage profession two decades ago thanks to an off-the-cuff question. He began as a loan officer at Greenwich Home Mortgage before starting his own company, The Mortgage Corner, in 2003. Today, he is president of Residential Home Funding, which has more than 30 locations along the East Coast. He has also gained prominence as a major advocate of corporate social responsibility, both through his company’s philanthropic foundation and his own leadership work with nonprofit organizations. National Mortgage Professional Magazine spoke

“We at Residential Home Funding are working to ensure that we have the right people to handle compliance and regulations. We are testing and studying in order to make sure that we are properly staffed to handle these ever-changing rules and regulations.” with Tom regarding his extensive and seemingly indefatigable work in the mortgage field. How did you get involved in the mortgage industry? And was this your original career choice? I ran an ADP Security Systems dealership, and I was one of the largest dealers we had in the country. I would go to mortgage

and real estate companies and give clients alarm systems. One gentleman who was a client asked me, “Did you ever consider getting involved mortgages?” I looked at some of the money these guys made—this was in 1996—and, at the time, I was a salary guy and my daughter was a one-year-old. So, I quit the salary job and went to becoming

a straight-commissioned loan officer. I assume your daughter didn’t have any comment on this abrupt career change, but how did you wife handle the news? My wife’s reaction was, “What are you, crazy?” But only eight months later, I was making the same money I had been making at ADP. That means you’ve been in the mortgage profession for around 20 years at this stage. What do you see as the positive and notso-positive changes over that two-decade stretch? After the Great Recession, our pool of loan officers saw an approximate loss of 80 percent. That meant 80 percent less

SSIONAL

How about the changes brought by TRID? How has that impacted your company, Residential Home Funding? Not only did we have to adapt, so did our LOS, Encompass from Ellie Mae. Encompass took just as long to make sure all of their elements worked the same way that ours worked. We needed to have a consulting firm go in and make sure that every loan was in compliance. We also spent numerous hours in seminars and had our loan officers do a road show for our real estate brokers and attorneys explaining the data and timing associated with TRID. For the benefit of those not familiar with Residential Home Funding, where do you conduct business? Residential Home Funding’s corporate headquarters is in White Plains, N.Y., and our operational headquarters is in Parsippany, N.J. Our footprint stretches from Connecticut to Florida. How has business been? For anything within a 50-mile radius outside of New York City, property values are strong. We are right where we should be … in a nice, slow pattern of growth. We have also seen amazing growth in Florida, where we are exceeding expectations. Our largest growth has been in South Carolina. We had the largest growth of mortgages in the fourth quarter of 2015 compared to any other area–we are up about 600 percent in that state. But in comparison, the markets in North Carolina and Georgia are a little slow. What are some of Residential Home Funding’s goals for 2016? Our goal is a75 percent purchase

MONTH

business and a 25 percent refi business. We’re currently at that, so our overall business will not be affected if rates rise. I also hope that all of the global warming effects don’t become a massive blow to our company. Superstorm Sandy was right in the middle of our lending area. I hope God will be with us, as flood insurance in the last couple of years had a major impact for coastal properties. Flood insurance went from $2,000 a year to $20,000 a year if a property is not built up. We at Residential Home Funding are working to ensure that we have the right people to handle compliance and regulations. We are testing and studying in order to make sure that we are properly staffed to handle these ever-changing rules and regulations.

You seem quite busy with your mortgage-related work. What do you do for your leisure pursuits? I serve on several boards. I am on the board of St. Joseph Hospital in Wayne, N.J., and I am on the executive board of new Law Enforcement Against Drugs organization, which is going after new heroin epidemic. I work with Residential Home Funding’s own RHF Foundation, which, over the last five years, has raised more than $400,000 for a local hospital. Your leisure time is spent doing more work? I am a strong believer in giving back to the wider community. Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.

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Some might be surprised to hear the words “Thank God” used in the same sentence as “The Consumer Financial Protection Bureau.” How has your business been impacted by the many regulatory changes brought about by the CFPB, as well as the other post-2008 legislative changes? It has impacted our business heavily, to the point where we need four full-time employees to handle our regulatory and compliance concerns. Having the I’s dotted and the T’s crossed is a continual element of our business. On the contrary, many financial institutions–particularly community banks and credit unions–are either exiting the residential lending arena or subcontracting to mortgage companies because either they do not know how to do a loan under the Ability-to-

Repay/Qualified Mortgage Rule or because their loans do not fall into a safe harbor. They are coming to us in the mortgage industry to do loans they used to originate at a neighborhood level.

THE

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competition. The 20 percent that were left as competition in the market were pretty good. Back then, you could have been a disbarred attorney one day and a loan officer the next. There was no due diligence on loan officers. I could be in bankruptcy and have judgments against me, but I could sit across from you and discuss financing when I couldn’t handle that financial responsibility myself. I see a huge, huge positive in that respect. Thank God for the NMLS and the Consumer Financial Protection Bureau for mandating hours for education and testing. On the flip side, however, when I first started, the job was structured. I had to know what I was doing. Now, because it is so computerized and Fannie Mae and Freddie mac standardized the work with automated systems, loan officers enter information into a computer and it spits out a yes or no. Sometimes, loan officers don’t know how analyze data like financial planners do. It is more like garbage-in/garbage-out.

A Message From E. Robert Levy Chairman, Regional Conference of the Mortgage Bankers Association and Executive Director & Counsel of the MBANJ, NJAMB and PAMB Here is why you will hear many mortgage industry leaders say: "The Regional Conference of MBAs is simply the best!” The Regional Conference of MBAs, set for SundayThursday, March 13-17 at Harrah's Convention Center in Atlantic City, N.J. is designed to meet the specific needs of mortgage bankers by providing a program that includes all of the following: l Top quality expert speakers enhancing your company's ability to become more profitable and compliant in the coming year. l The Industry Leaders Panel, moderated by Regina Lowrie, which is well-known as the best of its kind. l Great networking opportunities, including two cocktail receptions during the Commercial Program and three during the Residential Program of the conference, each with plenty of food. l Attendees enjoy two commercial breakfasts and two residential breakfasts, as well as lunches in both the Commercial and Residential Exhibit Halls. l A Residential Exhibit Hall that many regard as the best in the industry where exhibitors get to make deals with attendees that include many CEOs and other key decision-makers of the nation’s top firms. l Exhibitors get eight free Exhibit Hall passes to use for clients and friends, as well as publicity in all conference e-mails, signage at the conference, information in the Program Book, an announcement at the General Session (sponsors get similar publicity as well).

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

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All of the foregoing and more is what you get for a single fee for either the Commercial or Residential Program … truly a great deal! For those who would like to attend both programs, there is a single “combo" fee available. Is this a great deal for you (take a look at our fee schedule)? Is it time for you to register to get our early-bird pricing? Should you get a booth now since booth locations are assigned on a first-come, first-served basis? The answer to each question is "yes,” so don't be left out, keep your competitive edge and register now. We'll see you in March at Harrah's Convention Center in Atlantic City, N.J.! E. Robert Levy is chairman of the Regional Conference of the Mortgage Bankers Association and Executive Director & Counsel of the Mortgage Bankers Association of New Jersey, New Jersey Association of Mortgage Brokers and the Pennsylvania Association of Mortgage Brokers. He may be reached by phone at (732) 596-1619.

nmp news flash continued from page 65

Housing Administration (FHA) is reducing the multifamily insurance rate as a solution to bring more capital financing into the creation of rental developments. The rate reductions will take effect April 1 and lowering annual rates on “broadly affordable housing”–where least 90 percent of the units are under Section 8 contract and/or covered by Low Income Housing Tax Credit–to 25 basis points (bps) and lowering rates on affordable mixedincome properties to 35 bps. For energy-efficient properties, the FHA is lowering annual rates to 25 bps. Multifamily insurance rates for market-rate properties that are not energy efficient will remain unchanged. “NAMB is happy to see a reduction in insurance costs on FHA multifamily,” said Rocke Andrews, CMC, CRMS, president of NAMB—The Association of Mortgage Professionals. “Hopefully, this will encourage new building and reduce the cost of housing to many Americans in the rental property market.” “Families across the country are struggling through an affordable housing crisis,” said U.S. Department of Housing and Urban Development (HUD) Secretary Julian Castro. “By reducing our rates, this Administration is taking a significant step to encourage the preservation and development of affordable and energy efficient housing in communities large and small. This way, hardworking families won’t have to make the false choice between quality or affordable housing.” “HUD’s decision today is a positive step toward helping support the need for affordable and more cost efficient rental housing,” said David H. Stevens, CMB, president and CEO of the Mortgage Bankers Association (MBA). “Specifically, the reduction in Mortgage Insurance Premiums for FHA loans on multifamily affordable and energy efficient properties may help build more apartments and allow for more families and individuals to access affordable and energy efficient housing. This is one significant element to expand the availability of affordable and workforce rental housing in America and we will continue to advocate for other measures toward these critically important objectives.”

Rents Up 3.3 Percent YoY in January

SPONSORED EDITORIAL

Average rent prices in January dropped

0.3 percent from the previous month, according to the latest numbers from Apartment List. However, on a yearover-year basis, average rent prices rose 3.3 percent. In comparison, the December 2015 year-over-year uptick was 2.7 percent. The most expensive rental markets last month were found on either the East or West Coast, with San Francisco topping the list with one-bedroom and two-bedroom rents averaging $3,520 and $4,760, respectively. Rounding out the top 10 for expensive rents were New York City; Jersey City, N.J.; Washington, D.C.; Boston; San Jose; Los Angeles; Stamford, Conn.; Miami; and Seattle. Vancouver, Wash., recorded the greatest year-over-year increase in rents, with a 12.4 percent spike last month. The average cost for a two-bedroom apartment in Vancouver is now $1,120 per month.

GSEs Launch Independent Dispute Resolution System

The government-sponsored enterprises (GSEs) are now providing the mortgage industry with an independent dispute resolution (IDR) process that is designed to resolve disputes involving loan repurchases. The new IDR, which was announced today by the Federal Housing Finance Agency (FHFA), will designate a neutral third party arbitrator to rule on loan level disputes that have not been amicably resolved in the appeal and escalation processes. However, the new IDR process will only be available on loans delivered to Fannie Mae and Freddie Mac on or after Jan. 1, 2016. “The IDR process provides the Enterprises and lenders a mechanism for resolving a repurchase dispute and avoiding the possibility that a dispute might languish unresolved for an extended period of time as has often occurred in the past,” said FHFA Director Melvin L. Watt. “IDR is the final part of the Representation and Warranty Framework which, taken as a whole, will increase clarity for lenders and will ultimately increase access to mortgages for creditworthy borrowers.” The FHFA noted that the IDR was created through the combined efforts of the GSEs and the mortgage industry. David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA), applauded the announcement of the IDR. “FHFA, Fannie Mae and Freddie Mac should be commended for their

work over the last four years on the representation and warrant framework,” said Stevens. “The independent dispute resolution process is an important final piece to this effort. In its totality, the representation and warranty framework will provide much needed certainty and transparency for lenders of all sizes and help broaden access to credit for borrowers. MBA is glad to have contributed to this initiative and we look forward to continuing to work with FHFA, the GSEs and other stakeholders in helping to create a sustainable lending environment that reasonably expands credit for all borrowers interested in the homebuying process.”

OCC Ends Consent Orders Against U.S. Bank and Santander The Office of the Comptroller of the Currency (OCC) has announced the termination of its mortgage servicing-related consent orders against U.S. Bank and Santander Bank after determining the banks are in compliance with the orders.

The OCC—and, in the case of Santander, the former Office of Thrift Supervision (OTS)—issued orders against the banks in April 2011, with the OCC amending the orders in February 2013 and June 2015 after it determined that both banks failed to correct deficiencies identified in original consent orders in a timely fashion. The OCC assessed a $10 million civil money penalty against U.S. Bank and a $3.4 million civil money penalty against Santander. The assessed penalties will be paid to the U.S. Treasury.

Financial Burdens on the Rise

Your turn National Mortgage Professional Magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of: NMP News Flash column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

new to market continued from page 39

Your turn National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any other announcement related to the introduction of a new program, to the attention of: New to Market column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

ince Ginnie Mae exists to support government mortgage programs, we serve the same constituencies as the FHA, VA and other programs: lower- and middle-class households, military veterans, and rural America. Across the spectrum, financial burdens have been rising. Let’s take a look. Student debt has been growing to uncomfortable levels. According to the Institute for College Access and Success, seven in 10 college graduates now have student loan debt. In the decade from 2004-2014, the average debt per graduate surged by more than 50 percent, increasing from $18,600 on average per graduate to $29,000. Meanwhile, more established workers have not seen their wages increase enough to improve their standard of living. According to the Bureau of Labor Statistics (BLS), after plunging in during the Great Recession, wage growth has managed to climb back only to par with inflation, at just over two percent, but with those of modest financial means still lagging. Then we see other middle-income households whose savings have been depleted by the Great Recession and housing crisis. According to the Pew Research Center, median wealth among middle-class households declined by 28 percent from 2001-2013. The G.I. Bill is a landmark piece of U.S. public policy. One important provision: A mortgage benefit that allows military veterans to buy homes without having to 77 make downpayments. Now a lifetime benefit for service men and women, as well as many reservists and members of the National Guard, we have seen record numbers take advantage of this benefit in recent years. When it comes to rural America, mortgage money has been hard to come by. With big banks reducing their role in government mortgage markets, local community banks have been left to pick up the slack. But, they do not have the necessary funds to do so. As the Conference of State Bank Supervisors (CSBS) found, during the past generation the percent of assets in community banks has fallen like a rock, from almost 40 percent to just 13 percent. Then there are seniors, now growing due to the aging of the Baby Boomers. Seniors must stretch out retirement savings over a longer life span, now at 79 or five years more than in 1990. The problem: their savings are already low. According to the General Accounting Office (GAO), 29 percent of those age 55 and older have no retirement savings or pension; and for those with 401(k)s, the median balance for those between 55 and 64 is just $104,000—not enough for a secure retirement. From students to seniors, what do all these households have in common? One, they have become more financially strapped. And two, in recent years their primary, if not only, means to secure housing have been the government mortgage programs Ginnie Mae supports. Why? Fannie Mae and Freddie Mac have tightened their credit standards, and the private-label securities markets remains dormant. For instance, recent GSE average loan-to-value percentages (77), credit scores (744) and total debt-to-income ratios on purchase-money loans (an estimated 34 percent) have created a mortgage credit vacuum. And Ginnie Mae has largely filled this void, with more flexible average LTVs (96 percent), credit scores (692) and back-end debt ratios (40 percent) across our recent business. The financial condition of our core constituencies explains much of the rapid growth in Ginnie Mae business. Indeed, rather than contracting as the economy has recovered, our annual market share has been expanding, from 22 percent in 2008 to 33 percent in 2015, or more than Freddie Mac. For planning purposes, we at Ginnie Mae assume that the large number of households we have been supporting has become the norm. And we must ready our business to be an essential source of mortgage funds during recessions and recoveries alike. Ted W. Tozer is was sworn in as president of Ginnie Mae on Feb. 24, 2010, bringing with him more than 30 years of experience in the mortgage, banking and securities industries. As president of Ginnie Mae, Tozer actively manages Ginnie Mae’s $1.5 trillion portfolio of mortgage-backed securities (MBS) and more than $460 billion in annual issuance.

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for all lenders,” said Al Ogrodski, senior vice president of Solution Strategy at ComplianceEase. “With VOE Xpress, our clients can conveniently place VOE orders and either download the results from our site or receive the results within their production platform if they are integrated with us— enhancing their workflow and improving efficiency. Similarly, outsourcing the VOE functions to an industry leading compliance expert can further reduce costs and mitigate regulatory and credit risk.”

By Ted W. Tozer

NationalMortgageProfessional.com

ComplianceEase Launches ance using verification of employment (VOE) is a foundational best practice Online Verification Tool

ComplianceEase has announced that it has launched VOE Xpress, a Web-based solution that provides independent authentication of borrower employment and income. VOE Xpress allows lenders to verify a borrower’s employment and income history to demonstrate the borrower’s ability to repay as required by the Consumer Financial Protection Bureau’s Qualified Mortgage (QM) rule and by government-sponsored enterprises (GSEs) and investors. VOE Xpress validates the borrower’s employment and income information via search engines, employment verification databases, and verbal and/or written confirmation from the borrower’s employer. The solution then provides complete verification reports on a borrower’s name, employment history, employment dates, employment status, job title, and detailed compensation data (i.e., wages, overtime, commissions, and bonuses, if provided by the employer). In some cases, salary history and projected pay increases are also included. “Documenting evidence of compli-

Step Inside Ginnie Mae

Diversity is Good Business

By Ginger Bell

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NationalMortgageProfessional.com

Millennials has been a constant topic the past few years, but what about creating a diverse culture? What are we doing to make sure we are providing opportunities both in employment and homeownership for diverse cultures and what does that mean? To begin, diversity consists of all the different factors that make up an individual: Age, gender, culture, religion, personality, social status and sexual orientation. Cultural diversity, also known as multiculturalism, includes diverse individuals from different cultures or societies. Cultural diversity usually takes into account things like language, religion, race, sexual orientation, gender, age and ethnicity. Simply put, diversity means differences and inclusion is about ensuring that individuals are not “excluded.” Diversity affects more than just your staff; it also includes your clients, your business partners and your vendors. Consider all the ways they are different. Race and gender are typically the first characteristics that come to mind, right? However there are many other elements that make up a diverse society. For example, disability, national origin, socio-economic differences, education, height, weight, culture, sexual preferences, age are all elements that contribute to diversity. Often companies only think of diversity when hiring, but for companies not planning to hire, diversity should still be important. Let’s look at diversity from a client or marketplace perspec-

tive. Homeownership reaches all cultures, all disabilities, all national origins, all religions, all ages … every group that makes up a diverse culture. Consider some recent data from the National Association of Hispanic Real Estate Professionals (NAHREP)1: l The Hispanic population is now widely recognized as the key driver for growth in the overall housing sector. l Accordingly, the barriers that are impeding Hispanic participation in homeownership have a substantial impact on all segments of the housing industry. l The year 2014 was that first time that homebuyers represented the smallest percentage of overall home sales (33 percent) in any year since 1987. l Most housing experts believe that a healthy and sustainable housing market would need that number to be closer to 40 percent. l Despite the challenges, Hispanic real estate agents expect 2015 to be a breakout year, with 65 percent of the top agents surveyed forecasting a stronger year for Hispanic homebuyers. Have you looked at your marketplace recently? One may argue, for example that diversity does not exist in your marketplace and therefore does not affect you. An originator from Iowa recently told me that there is no diversity in Iowa. Let’s consider this … there is age diversity in Iowa. There is gender diversity in Iowa. There is disability diversity in Iowa. If that person were to take a closer look at the market and potential clients, they most likely would

find that there are ethnic minorities in Iowa as well. The point here is that you may not think your market is diverse, but after taking a deeper look, you may be surprised by what you find. Here are a few statistics to support the importance of marketplace diversity: l Demographic shifts are happening globally (beyond workforce) l Women drive an estimated 70-80 percent of consumer spending with their purchasing power and influence.2 l The Lesbian, Gay, Bi-sexual and Transgender (LGBT) community has significant buying power ($884 billion in 2014)3 l One in five Americans is considered disabled and the number of disabled Americans will increase with the aging population4 What do these statistics tell you? Essentially, they are telling us that there are opportunities to gain new business opportunities when companies understand and leverage the diversity of their marketplace. We need to look beyond our usual clients and consider what other ways we can be helping to create and build a cultural of diversity. Below is a list of some things to consider to help build diversity in your marketplace: 1. Learn and understand the marketplace and any potential clients. 2. Look at your business to determine

3. 4. 5. 6. 7.

if you are penetrating the marketplace effectively. Get involved in the community to learn what’s happening. Meet community leaders (get out there and network). Attend social events and community events. Volunteer in your community. Align with community organizations (i.e., Hispanic Chamber of Commerce) Engage in business social networking online communities.

Diversity is good business. It increases competitiveness in new markets; expands market share through access to new markets; deepens customer loyalty and increases value; enhances the employee talent pool; increases creativity, production and revenue; and, improves recruitment and morale. Ginger Bell is the best-selling author of Cracking the Success Code and Success Today, books she co-authored with Brian Tracy and other business specialists. Her experience includes creating and managing training standards, expectations and measurements that build employee competencies. Ginger is currently involved in leading development of a gamification elearning system with Morf Media Inc., an international gamification software development company. She may be reached by e-mail at ginger@morfmedia.com.

Footnotes 1—NAHREP.org/downloads/2014-SHHR.pdf 2—TheFemaleFactor.com/Statistics/Statistics_About_Women.html 3—Witeck.com/PressReleases/Americas-LGBT-2014-Buying-Power-Estimated-at-884-Billion/ 4—Census.gov/NewsRoom/Releases/Archives/Miscellaneous/cb12-134.html

the long and short continued from page 52

The following first mortgages for underwater home refinancing all have no maximum on the either the LTV or CLTV when secondary financing is with a government entity: l l l l l l

FHA Short Refinance Freddie Mac Relief Refinance Fannie Mae Refi Plus FHA Streamline Refinance VA IRRRL USDA Refinance

3. Homeowners could replace funds Making a new second replacement loan with Hardest Hit Funds for funds that could facilitate better financing could be paid back to HHF by the homeowner.

Using Hardest Hit Funds as a vehicle to restructure underwater mortgages for better financing options where none exists that offers relief to underwater homeowners who are trying to stay in homes until equity returns is what this idea is about. Examples using methods above will be available shortly at HousingCrisisStories.com. Pam Marron (NMLS#: 246438) is senior loan originator with Innovative Mortgage Services Inc. (NMLS#: 250769) in Tampa Bay, Fla. She may be reached by phone at (727) 375-8986, e-mail Pam.M.Marron@gmail.com or visit HousingCrisisStories.com, CloseWithPam.com or 8Problems.com.

Join us for

NAPMW’s Top Conference Promoting Women In Mortgages

operation va sitrep continued from page 64

April 18-20, 2016 | Luxor, Las Vegas 3. The requirements set out in A12, below, related to exemption of income verification are satisfied.

Agility Resources Group

(860) 922-3441 l info@agilityresourcesgroup.com 79

Richard M. Bettencourt Jr., CRMS, CMHS of Danvers, Mass.-based Mortgage Network is secretary of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (978) 304-0818 or e-mail RBettencourt@MortgageNetwork.com.

Footnotes 1—Circular 26-16-03 Exhibit A Jan. 20, 2016 2—Circular 26-16-03, Exhibit A, Jan. 20, 2016

M O R T G A G E

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

calendar of events see page 85

www.LykkenOnLending.com

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N A T I O N A L

Keynote Presentation by Bethany McLean the award-winning business writer who co-authored the explosive book about Enron, The Smartest Guys In The Room.

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Lenders should note that if the IRRRL cannot be exempted from income verification (as set forth in A13, below), the loan can still be deemed a safe harbor QM, IF the lender verifies the borrower’s income in accordance with VA’s underwriting requirements found at 38 C.F.R. §36.4340. If the loan is not exempted from verification, and if the lender does not verify the borrower’s income in accordance with 38 C.F.R. §36.4340, then the new IRRRL cannot be considered a safe harbor QM. 7.2 Now, for the sake of the article I write each month and the amount of space I’m granted, I cannot get into the specifics of the other 13 FAQ’s that were on this particular circular. Another key piece that I did take out of this Circular which was a point of major contention pertaining to the Recapture Period for expenses in connection with a VA IRRRL. Prior to the release of this circular there was confusion and ambiguity as to whether Tax/Insurance Escrows were to be a part of the actual 36Month Recoupment period for IRRRL’s. I’m pumped to say that this circular clarified that question and Tax/Insurance escrows will not be part of the recoupment period. That’s a huge win for veterans and advocates of

the VA Home Loan Benefit. My VA Committee did have some questions regarding some of the verbiage or lack thereof, so we’re working on some questions which we’ll present to the VA Loan Policy and Valuation Division within the next couple of weeks! Well, that’s it for this month! Now, if you’re reading this, I hope you are reading it in the gorgeous state of South Carolina while attending NAMB East! NAMB East is gearing up to be an amazing show with a strong focus on helping mortgage professionals grow their business in an already competitive market! My CoChair, Ken Bates, and I will be having a VA Breakout Session to help other loan originators increase their VA business by incorporating some simple tricks Ken and I use which helped us to originate nearly $100 million per year in VA home loans! Thanks again, and as always, if you haven’t done so today, please take a minute and thank a veteran!

By Wes Miller

RID has made lenders liable for a number of violations on loans that can occur from application to close. Three main entities are scrutinizing this process, each posing specific risks to the lender. l The Regulator: The Consumer Financial Protection Bureau (CFPB) and other regulatory agencies are watching mortgage companies for any violations on the new rule. l The Consumer: TRID has opened up TILA to class-action lawsuits and civil liability. l The Investor: Investors have the ability to push a loan back to the lender or to make the lender pay indemnification fees if evidence of a TRID violation is found. Many investors aren’t even considering TRID loans. To be profitable in this heavily-regulated mortgage landscape, it is essential for lenders to manage the risk that comes with all of the paperwork and parties involved in a loan, and to build loans as if they are building a court case that will stand before a judge—because they very well might.

Identity check

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

NationalMortgageProfessional.com

Build TRID Loans Like They Will Stand Before a Judge Because they very well might

It is a best practice for lawyers to conduct background checks on their witnesses to ensure they are truly who they say they are. It would be detrimental to a case if it were discovered that a lead witness had a past that called his credibility into question. The mortgage industry should be doing identity checks on loan participants for similar reasons. Every mortgage professional should be verified with vendor management in place before they are allowed to work on mortgage files. The lender is ultimately responsible for third and fourth parties to the transaction. You might be thinking, “But we do that already!” Mortgage brokers, for instance, have to be fingerprinted by the FBI. However, reviewing and verifying the accuracy of every participant isn’t typically being done at the beginning of each mortgage transaction. A major TRID violation that has surfaced is that page five of a mortgage file—the section where participants on the transaction are supposed to be listed—is often left blank on the Loan Estimate (LE). By the time the Closing Disclosure (CD) is put together, it’s too late to correct this. But if there was a system in place that verified and vetted each participant on a regular basis, this information would be pulled at the start of each and every mortgage transaction, proving that every participant truly is who he or she says they are, and page five would be automatically updated with accurate details. This would go a long way toward

allaying concerns from investors, consumers and regulators, creating a feeling of trust that is rare and precious in any industry. If this still seems extreme, consider the ramifications of not doing proper vendor management. CoreLogic has analyzed and reported on mortgage fraud risk since 2010. According to CoreLogic’s Bret Fortenberry, mortgage fraud risk has fluctuated in increments in the last six years, but has increased on average. Last quarter, mortgage fraud decreased by 8.9 percent, but “If the mortgage fraud risk continues this trend, it could peak around the second quarter of 2016, reaching the highest fraud risk since 2010.” Such a massive increase in mortgage fraud cases would draw increased regulatory oversight and further deter investors from buying TRID loans.

Achieving consensus

TRID loans need to be built with the same level of precision and perfection that a lawyer uses when preparing a case for trial. This isn’t just an analogy. Faulty loans can be brought before a judge, so it makes sense to originate and close them with high standards for data accuracy. It is essential to be able to defend a loan in court, and to provide the necessary evidence proving that all parties in the transaction followed due diligence. Will the defendant please rise? Wes Miller is CEO and co-founder of ATS Secured, a new technology category for the real estate closing industry. Miller has extensive experience in developing and marketing both core and ancillary financial products. Wes has been recognized for his success in sales, customer service and training support staff.

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Proving consensus Many entities contribute to the loan,

Compliance is the courtroom of the future

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How does a lawyer build a solid case? Once the integrity of participants has been verified, the next step is to ensure the accuracy and sturdiness of the gathered evidence. Every piece of substantiation—subpoenaed documents, depositions, etc.—needs to fit together like a brick wall, solid and unwavering. The smallest error could be enough to undermine the entire argument. In the same vein, though most TRID violations have so far been regarded by the mortgage industry as minor or technical, they can still weaken a loan’s integrity in investors’ eyes. According to BuckleySandler, a law firm that specializes in real estate compliance, “After nearly a decade of litigation among market participants (and governmental entities) related to alleged loan defects, investors are wary that any TRID violation could lead to a repurchase or indemnification demand down the road.” This is why it is essential for loans to be built on solid, incontrovertible data. To achieve this, loan participants (or “witnesses”) have to come to a consensus that the data is as accurate as they can possibly make it. But when the lender, settlement agent and vendors are working with different sets of documents, this is difficult to accomplish. There is also the problem that the different systems where the data is stored generally are not compatible and so do not have the ability to crosscheck information. These problems and more can make for an unstable loan with a diminished value. Even if consensus is reached, proving the data is accurate is one of the main issues with the current mortgage process. Lenders need a better way to collaborate, crosscheck and reconcile loan information, ensuring that it is accurate on a granular level.

and with the way the industry is currently set up, there is no 100 percent reliable method for lenders to prove that other loan participants achieved consensus in a compliant manner. Yet at the end of the day, lenders are the ones held liable for the loan file, as stated by the final rule. This is why lenders need the mindset of a lawyer when gathering evidence for a case, with the approach of documenting everything. They need a way to record every action and communication of those who have touched the loan file, to help prove that these entities have performed due diligence and that consensus was in fact reached. Every party in the transaction is a potential “witness” that lenders need to gather evidence from to prove this. The necessity of recording every action on the loan file is closely tied to the first point: the importance of participants being vetted before they are allowed to touch the loan file. It’s about more than a simple background check; it’s about tracking and recording a vetted individual’s actions and communications. So when a regulator or investor wants to question any minor detail that went wrong, they could view who the responsible authority was, how they dealt with the infraction, when they dealt with it, and how it might have impacted the rest of the loan file. This is where an audit log comes into play. Without such a tool, documenting the necessary evidence would be nearly an impossible task. This level of third-party management is rare in the industry, yet it needs to be adopted. Partial evidence or no evidence is the same to mortgage investors and have the same outcome: Repurchase or indemnification fees. Without oversight, lenders have no proof of compliance.

The Mortgage Originators Conference Wednesday-Friday, March 9-11, 2016 Westin Hilton Head Resort & Spa on Hilton Head Island, S.C.

By Linda McCoy, CRMS

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n

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NAMB East is the conference you have been waiting for, where hundreds of mortgage professionals are coming to South Carolina for the nation’s top networking event. It’s not too late to be a part this great conference for mortgage originators. The top chief executive officers and their representatives of the best wholesale lenders in the industry will be on hand for NAMB East. We have a packed Exhibit Hall that will be full of the best in the nation just waiting to network and share their ideas and provide you with the tools to make you a top originator in today’s competitive marketplace. The dates for the event are Wednesday-Friday, March 9-11, 2016 at the Westin Hilton Head Island Resort & Spa on Hilton Head Island, S.C. Just log on to NAMBEast.com and take a look at this beautiful Resort on the Beach, and yes, we will take late registrations. If the picture alone does not grab your attention, maybe playing in the Golf Tournament benefiting the NAMB Legislative Action Fund (LAF) at the fantastic Port Royal Golf Course will. You definitely would not want you to miss this great mortgage pro event. We want to give value to our members by keeping you updated on government affairs and educating you on what is important in our industry. We are inviting all of the Delegates to the Delegate Council Meeting and state leadership to be a part of a State Affiliate Leadership Meeting where you will learn about the highlights of the Mortgage Summits held last year. We have three keynote speakers lined up—Chip Cummings, Lisa Myers and Sam Wyche—all who are at the top of their professions. Hilton Head is a wonderful location for a conference. Take a few minutes to call and plan your afternoon activities. We planned this conference so you could have a fully packed morning of networking with the leaders in the industry, learning how to become a better originator and then left the afternoon free so that you can just kick back, relax or plan a fun-filled time. Hilton Head is full of fun things for you to do like kayaking, hiking, fishing, sightseeing, shopping, biking, golfing, bird watching, etc., or you could visit the museum and learn about the endangered Loggerhead Sea Turtles that come to Hilton Head to lay their eggs. You could even experience zip-lining or play foot golf on the nine-hole course at Port Royal Golf & Racquet Club. Choose the classes that interest you, and do not miss the quality keynote speakers we have lined up, while spending the afternoon having the time of your life and joining us back in the Exhibit Hall in the evening from 6:30 p.m.-7:30 p.m. for a cocktail reception to mingle with your favorite vendors and friends. Oh … I forgot to tell you about the prizes that the vendors will be giving away at 7:30 p.m. on Thursday night. Everyone will want to be present so they can win. The agenda for NAMB East is online at NAMBEast.com and so is the list of sponsors. Please visit the site and review the list to start making your plans to stop and chat with each and every one of them to thank them for their participation and support of NAMB. I look forward to seeing you at NAMB East! Linda McCoy, CRMS is chairman of NAMB EAST. Linda is a Certified Residential Mortgage Specialist (CRMS) and the owner of Mortgage Team 1 Inc. in Mobile, Ala.

SPONSORED EDITORIAL

heard on the street continued from page 72

“We congratulate Black Knight for its accomplishment,” said MISMO President Mike Fratantoni. “The certification program provides clear assurance regarding compatibility with MISMO standards and is an important tool for lenders and others to use when evaluating product capabilities.” MISMO Software Certification provides assurance that a technology provider’s certified products demonstrate compliance with MISMO standards and best practices. The Premiere Level certification includes an assessment by an independent, MISMOapproved, third-party assessment company. This assessment evaluates the provider’s MISMO-related practices, product-specific usage of MISMO standards, and evidence of MISMO training. Only products certified by MISMO may utilize the term “certified MISMO compliant”—a symbol of industry excellence. “Building MISMO standards into our core platforms provides for a more open and reliable data reference model for better communication and collaboration throughout the loan process,” said Dan Sogorka, president of RealEC Technologies. “We are honored to be awarded MISMO Premiere Level Certification to affirm that Exchange and Closing Insight can help effectively support clients with their compliance needs.” Closing Insight, offered by Black Knight’s RealEC Technologies division, provides the ability for lenders to securely exchange documents, data and other information to collaborate with settlement agents using a workflow-driven approval process to help generate initial and final loan closing disclosures in support of TRID rule requirements. Black Knight’s Exchange, which is also offered through its RealEC Technologies division, is an open technology platform that provides integration, data, workflow and decisioning support through a 24/7 data exchange that connects more than 17,000 of the mortgage industry’s service and solution providers with the top lenders in the industry. Closing Insight and Exchange have received certification for MISMO Version 3.3 within the origination business domain.

Mortgage Professionals to Watch l Richard M. Bettencourt Jr., CMHS, CRMS, a branch manager for Danvers, Mass.-based Mortgage Network, has been elected vice chairperson of the Greater Boston Association of Realtors (GBAR) Industry Affiliates Committee for 2016. l Paramount Residential Mortgage Group (PRMG) has announced that James Matarazzo will be taking over the Eastern U.S. territory as regional vice president. l HomeBridge Financial Services Inc. continues to focus on growth throughout the Midwest with the opening of a new office in East Lansing, Mich. In addition to the new location, HomeBridge has hired two Michigan

mortgage industry veterans, David Nichols and Kannon Kares, to oversee the office’s operation and work directly with Lansing-area homebuyers and real estate professionals. Both Nichols and Kares join HomeBridge in the roles of area manager and sales manager, respectively. Waterstone Mortgage Corporation has announced its expansion in the state of Wisconsin with the hiring of Senior Loan Officer Don Griffin, who will work in the Madison branch location. LenderLive has announced that John Parrish has joined the firm as regional account executive for the company’s Correspondent Lending Division. eLynx has announced that the Mortgage Bankers Association (MBA) has appointed its president and CEO Sharon Matthews to the board of directors of the Mortgage Industry Standards Maintenance Organization (MISMO). Mortgage Network Inc. has announced that Carianne Bowen has joined the company as a loan officer in the company’s York, Pa. branch office. Travis Wright has joined Mortgage Network Inc. as a loan officer in the company’s Columbia, S.C. branch office, where he will be responsible for serving homebuyers and homeowners throughout the metro Columbia area. Christopher Swartz has joined Mortgage Network Inc. as a loan officer in the company’s Conshohocken, Penn. branch office. BuckleySandler LLP has announced that Kathleen “Kitty” Ryan, former Deputy Assistant Director for the Office of Regulations at the Consumer Financial Protection Bureau (CFPB), has joined the firm as counsel in its Washington, D.C. office. Eustis Mortgage has announced the addition of Paul “Buck” Bibb as a new business strategist to its Finance Home America Division. ClosingCorp has announced that Dave Petro has joined the company as head of sales and business development, where he will lead the ClosingCorp sales organization, develop customer acquisition strategies, and be responsible for building and maintaining relationships with leading loan origination systems and industry settlement service portals. Altavera Mortgage Services LLC has announced the addition of Debora Aydelotte to the company’s executive team as chief operating officer. Detroit-based Quicken Loans has announced that veteran Detroit technology executive John Fikany has joined the company as vice president of strategy, where he will be responsible for development of strategy and execution for large technology and other initiatives, while identifying and leveraging technology and business opportunities within

Your turn National Mortgage Professional Magazine invites its readers to submit any information, events, passages, promotions, personal or professional occurrences that seem appropriate and/or other pertinent data to the attention of: Heard on the Street/Mortgage Professionals to Watch column Phone #: (516) 409-5555 E-mail: newsroom@nmpmediacorp.com Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

senior production executives, Mary Bane and Jim Weir.

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joined the company as its newest Financial Group company, has named Quicken Loans and its family of executive, responsible for correGregory Ryan Klosterman as sales companies. spondent sales. In his role, Butler will Valuation Partners, a national director. spearhead Embrace’s Affinity Mortgage l Two Bay Equity Home Loans executives appraisal management company Solution, a residential lending program (AMC), has announced that Denise have been promoted to new positions for community banks and credit unions. Neely has joined the company as as John Curtin, one of Bay’s founders Southwest Region vice president, l Altisource Portfolio Solutions has and owners, takes over the role of where she will be responsible for announced that Eric M. Lapin, Kevin J. executive vice president of Corporate overseeing business development and Cooke and Devin P. Daly have joined Initiatives, and Autumn Van Rooy will new client services in Arkansas, the company to support the expansion serve as the new executive vice Alabama, Colorado, Louisiana, of Altisource’s mortgage and real estate president of Branch Finance Mississippi, New Mexico, Oklahoma, services initiatives. Lapin joins as vice Management and Onboarding. Tennessee and Texas. president of Financial Analytics Sales l HomeUnion has announced that they Top Vine Mortgage Services LLC has and Account Management, Cooke joins have hired Geri Brewster as chief announced the addition of Ellen Hecht as director of Enterprise Sales and compliance and risk officer where she as senior loan consultant for the Business Development, and Daly joins as will oversee legal, risk and compliance company’s Watchung, N.J. location. vice president of Sales and Professional functions for the company. GSF Mortgage has announced the Services for Mortgage Builder. l imortgage has announced the addition of Steve Stapleton as senior l WFG Lender Services (WFGLS), a Williston appointment of two industry-leading vice president. GSF has also added Timothy Blackford as a mortgage loan originator located in Naples, Fla. The company has also added Norman Clark as a mortgage loan originator in Traverse City, Mich., joining GSF with 22 years of mortgage industry experience. Stewart Lender Services has announced that Kirk Bockoven has been appointed senior vice president of loan quality. MortgageFlex Systems Inc. has announced that Steve Shore has joined the company’s Technical Services Team as chief information officer (CIO). The National Association of Hispanic Real Estate Professionals (NAHREP) has named Jason Riveiro as chief marketing officer, bringing more than 10 years of experience in leading multinational strategic initiatives for some of the most recognized Fortune 500 companies on both the agency and client side. Nations Direct Mortgage has announced the promotion of Martin Warren to senior vice president of wholesale and correspondent lending. In his role, Warren will lead the sales and fulfillment teams for the wholesale and correspondent channels at the Irvine, Calif.-based company. Mortgage Guaranty Insurance Corporation (MGIC), the principal subsidiary of MGIC Investment Corporation, has announced the promotion of Geoffrey Cooper to the role of vice president of product development, Peter Semenak to vice president of underwriting, and Bryan Specht to vice president of policy acquisition and servicing. The company has also hired Bill Walker as vice president, chief information security officer. Mortgage Master, a division of loanDepot LLC, has announced the expansion of their Northbrook, Ill. office to better serve borrowers with a suite of competitively priced lending products. Along with the expansion of the Northbrook office, Mortgage Master also announced the promotion of Jorden Brok and Brett Lotsoff as comanagers of both the Northbrook and North River–Chicago branches. Embrace Home Loans has announced that industry veteran Pete Butler has

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calendar of events N A T I O N A L

M O R T G A G E

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

MARCH 2016

Wednesday-Friday, March 16-18

JUNE 2016

Friday, September 16

Thursday, March 3

Sunday-Wednesday, June 5-8

Florida Association of Mortgage Professionals (FAMP) Broward Chapter 2016 Trade Show Bonaventure Hotel & Conference Center 200 Bonaventure Boulevard • Weston, Fla. For more information, call (954) 986-0808 or e-mail dmiller8@prodigy.net.

American Land Title Association (ALTA) Business Strategies Conference JW Marriott Indianapolis 10 South West Street Indianapolis For more information, call (202) 296-3671 or visit ALTA.org.

OriginatorConnect 2016 Mohegan Sun 1 Mohegan Sun Boulevard Uncasville, Conn. For more information, call (860) 922-3441 or visit OriginatorConnect.com.

Tuesday-Friday, March 8-11

APRIL 2016

NAMB East 2016 Westin Hilton Head Island Resort & Spa 2 Grasslawn Avenue • Hilton Head, S.C. For more information, call (860) 719-1991 or visit NAMBEast.com.

Monday-Tuesday, April 4-5

Tuesday, June 21

New York Association of Mortgage Brokers 28th Annual Wholesale Conference & Trade Show Empire City Casino 810 Yonkers Avenue • Yonkers, N.Y. For more information, call (914) 315-6644 or visit NYAMB.org.

Great Northwest Mortgage Expo 2016 Embassy Suites Washington Square 9000 SW Washington Square Road Tigard, Ore. For more information, call (860) 922-3441 or visit GreatNorthwestExpo.com.

Thursday, March 10 Florida Association of Mortgage Professionals (FAMP) Gulf Coast Chapter 2016 Annual Trade Show “Think Outside the Box!” Higgins Hall 5225 North Himes Avenue • Tampa, Fla. For more information, call (727) 569-0556 or e-mail Debbie@DebbieCooleyMortgage.com.

National Notary Association (NNA) 38th Annual Conference The Hyatt Regency Orange County 11999 Harbor Boulevard Garden Grove, Calif. For more information, call (844) 466-2266 or visit NationalNotary.org/Conference.

Saturday-Monday, September 24-26 NAMB National 2016 The Luxor Resort & Hotel 3900 South Las Vegas Boulevard Las Vegas For more information, call (860) 719-1991 or visit NAMBNational.com. OCTOBER 2016

Tuesday-Friday, October 4-7 JULY 2016

Monday-Tuesday, July 11-12 Ultimate Mortgage Expo 2016 Hotel Monteleone 214 Royal Street • New Orleans For more information, call (860) 922-3441 or visit UltimateMortgageExpo.com.

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

Sunday-Thursday, March 13-17 2016 Regional Conference of Mortgage Bankers Associations Harrah’s Resort Waterfront Conference Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, call (732) 596-7642 or visit MBANJ.com.

Saturday-Tuesday, April 9-12

AUGUST 2016

Sunday-Wednesday, October 23-26

NAMB 2016 Legislative & Regulatory Conference Hyatt Place National Mall 400 East Street SW • Washington, D.C. For more information, call (860) 719-1991 or visit NAMB.org.

Wednesday-Saturday, August 17-20

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

Florida Association of Mortgage Professionals 2016 Annual Convention Omni Orlando Resort at ChampionsGate 1500 Masters Boulevard • ChampionsGate, Fla. For more information, call (850) 942-6411 or visit MyFAMP.org.

Monday-Tuesday, April 18-19 National Association of Professional Mortgage Women (NAPMW) 2016 Annual Convention The Luxor Resort & Hotel 3900 South Las Vegas Boulevard • Las Vegas For more information, call (860) 922-3441 or visit NAPMWAnnual.com.

Wednesday, March 16

Monday-Wednesday, May 16-18

SEPTEMBER 2016

American Land Title Association (ALTA) Social Media Summit JW Marriott Indianapolis 10 South West Street • Indianapolis For more information, call (202) 296-3671 or visit ALTA.org.

American Land Title Association (ALTA) Federal Conference & Lobby Day Renaissance Downtown 999 9th Street NW • Washington, D.C. For more information, call (202) 296-3671 or visit ALTA.org.

Wednesday September 14

Friday, November 18

Texas Mortgage Roundup 2016 DoubleTree by Hilton Dallas Near the Galleria 4099 Valley View Lane • Dallas, Texas For more information, call (860) 922-3441 visit TXMortgageRoundup.com.

Utah Association of Mortgage Professionals (UAMP) Expo 2016 Canyons Resort 4000 Canyons Resort Drive Park City, Utah For more information, call (860) 922-3441 or visit UAMPExpo.com.

MAY 2016

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

Thursday-Friday, August 18-19

NOVEMBER 2016

Louisiana Mortgage Lenders Association 2016 Annual Education Conference New Orleans Riverside Hilton 2 Poydras Street • New Orleans, La. For information, call (225) 590-5722 or visit LMLA.com.

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

n Michigan Mortgage Professional Magazine n FEBRUARY 2016

Tuesday-Thursday, March 15-17 2016 National Association of Hispanic Real Estate Professionals Housing Policy and Hispanic Lending Conference The Fairmont Hotel Georgetown, Washington, D.C. For more information, call (858) 622-9046 or visit NAHREP.org/DC2016.

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Thursday, April 7 2016 Maryland Association of Mortgage Professionals Annual Conference Turf Valley Resort 2700 Turf Valley Road • Ellicott City, Md. For more information, call (410) 752-6262 or visit MDMTGPros.com.

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Direct Private Money and Bridge Lender specializing in Stated Loans in CA 866-668-2663 Send Scenarios to info@CalHardMoney.com LENDING CRITERIA Âˇ Collateral: Stated 1st and 2nd position loans on N/O/O invest. properties (SFR, Condo, 1-4 units), Mixed-use, 5+ units, Retail, Industrial, Warehouse and Etc. Âˇ Fix & Flip program up to 70%-80% of the Purchase price on all types of properties Âˇ Loan amounts/Terms: $50,000 up to $5,000,000 and loans from 6 months to 10 years. Âˇ LTV: Purchases up to 70%-80% LTV; Refinances up to 60-65% LTV; 2nd Position up to 65% CLTV Âˇ BROKERS ALWAYS PROTECTED AND RATES STARTING AS LOW AS 8.50%

MARKETING

WHOLESALE/CORRESPONDENT LENDERS

WHOLESALE LENDERS

Contac t: info@afr wholesale.com

888.664.2101 TagQuest www.myharpleads.com TagQuest.com 888-717-8980 TagQuest is a full service marketing firm created specifically for the ever changing mortgage business. We have tested and proven campaigns for FHA -VA - HARP - CONVENTIONAL loan types. TagQuest knows what it takes to generate quality leads whether through direct mail marketing, telemarketing, internet leads, data lists, tracking systems, or any combination thereof. TagQuest will brand your company, prepare targeted marketing campaigns that generate interest in your company, and most importantly, show you how to turn sales leads into repeat customers.

AFR Wholesale ranked #1 with the most Sponsor Originated FHA 203(k) closed loans.*

CLOSE MORE LOANS WITH:

FREE PROCESSING - NO LENDER FEES ** •Co nvent io nal •USDA •Manufac tured Housing •One -Time Close Construc tion •Freddi e Mac Open Acces s and Fannie Mae D U R P •VA and FHA, FHA 203(k) and 203(h) Rehab loans •Jumbo loans up to $2,000.000 Lender NMLS:2826 - 9 Sylvan Way, Parsippany - NJ, 07054 - *See website for details: www.afrwholesale.com Equal Housing Lender. Equal Opportunity Employer. **No Lender fees by AFR. Third party fees may apply. AB071114

PRIVATE FINANCING

WHOLESALE LENDERS

HomeBridge Wholesale is a national wholesale lender offering Conventional, Government, Jumbo, and Renovation Loans. We are committed to providing the highest value to our clients through competitive pricing, unique product offerings, superior customer service, and state-of-the-art technology.

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

WHOLESALE LENDERS

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

n National Mortgage Professional Magazine n FEBRUARY 2016

PUBLICATIONS

NationalMortgageProfessional.com

5 Park Plaza, 10th Floor Irvine, CA 92614 www.HomeBridgeWholesale.com

FEBRUARY 2016 n Michigan Mortgage Professional Magazine n NationalMortgageProfessional.com