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N A T I O N A L
M O R T
NMP Next: April 2016, Written and Compiled by Rick Grant
A P R I L
2 0 1 6
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V O L U
A SPECIAL FOCUS ON “LEADERSHIP”
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The Key to Driving You Mortgage Business Forward … You By Chad Jampedro..........................................................................................70
Achieving a Truly Seamless WorkflowDriven Appraisal Process By Vladimir Bien-Aime
Challenging the Status Quo By Brad Herbert ..............................................74
The Fine Art of Achieving Leadership Greatness By Michael Groff ..........72 Experience and Perseverance: The Pillars of a Great Leader By Jeffrey Tesch ..............................................................................................73 Leading With Clarity By Kerry W. Elam ........................................................76 Five Traits of Effective Leaders By Lisa Coleman ......................................77 Like Attracts Like: How Technology Translates Into Leadership Opportunities for LOs By Jeff Bode..............................................................78
visionary organizations 2016
54
Identifying Extraordinary Leaders By Kerry Wirth ......................................80
NMP’s Visionary Organizations 2016
Seven Steps to Building a Championship Sales Team By Marc Wayshak ............................................................................................88
How Will You Know When You Find a Leader? By Casey Fleming............82 Follow the Right Leaders to Become One Yourself By Wes Miller............84 Take Me to Your Liter By Eric Weinstein ......................................................86 There Is Always a Better Way to Lead By Elizabeth Morales ....................87
Built to Lead By Sarah Valentini ....................................................................90
FEATURES Sub-Prime: Establishing a New Track Record By Tom Hutchens ..............8 The Elite Performer: Migrate to Millennials By Andy W. Harris, CRMS ......8 Recruiting, Training and Mentoring Corner By Dave Hershman ................10 Industry Updates: April 2016 By Gavin T. Ales ............................................16
65 Lykken on Leadership: Five Ways to be Prepared for Inevitable Failure By David Lykken
Casey Stengel, Ernie Banks, Stan Musial … and Compliance? By Andrew Liput ..............................................................................................18
V I S I T Company
Web Site
O U R
A Page
Agility Resource Group ...................................... www.agilityresourcesgroup.com ......................................87 Angel Oak Mortgage Solutions ............................ www.angeloakms.com ......................................Back Cover Assurance Financial............................................ www.lendtheway.com ....................................................85 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ................................104 Caliber Home Loans.............................................. www.caliberwholesale.com ..............................................13 CallFurst.com ...................................................... www.callfurst.com ............................................................75 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................37 & 72 Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................47
96 Getting Back to Work (Now That TRID Is Over) By Carl Markman
Civic Financial Services/Wedgewood .................... www.civicfs.com ..............................................................9 Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................1 First Guaranty Mortgage Corp. ............................ www.fgmc.com ..............................Inside Front Cover & 78 Flagstar Bank .................................................... www.flagstar.com/ae ......................................................7 Great Northwest Mortgage Expo .......................... wwwgreatnorthwestexpo.com ..............................MT2 & 86 HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................17 Lykken On Lending ............................................ www.lykkenonlending.com ............................................80 MBS Highway .................................................... www.mbshighway.com/MNN ..........................................23 Moneyhouse U.S. .............................................. www.moneyhouseus.com ..............................................71
T G A G E
U M E
P R O F E S S I O N A L
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N U M B E R
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NAMB Perspective ........................................................................................20 Step Inside Ginnie Mae By Ted W. Tozer ....................................................24 What Frustrated Loan Officers and Supermarkets Have in Common By Brian Sacks ................................................................................................28 Get Your Best Results This Summer ..........................................................30 Tales From the Closing Table By Andrew Liput ..........................................32 Take the Lead! By Laura Burke, MBA, MS, MIS, CFE, EA ........................38 Survey Says: Nearly One in Five Originators Still Struggling With TRID........................................................................................................50 The Commercial Corner By Mike Boggiano ................................................64 The Long & Short: The Business of Short Sales By Pam Marron ..............66 Timeout! Time for Some Coaching to Reach the Next Level By Bubba Mills ................................................................................................68 MBA’s Mortgage Action Alliance: A Message From MAA Chairman Fowler Williams ..................................................................91 Operation VA SITREP By Richard M. Bettencourt Jr., CRMS, CMHS..........93 OrigiNation: By Originators, For Originators By Andy W. Harris ................94 New Book Champions the Benefits of Property Taxes By Phil Hall..........94 Playing by the Rules By Amy Bergseth ......................................................100
COLUMNS New to Market..........................................................................................12 News Flash: April 2016 ............................................................................14 Heard on the Street ................................................................................36 Outstanding Places to Work ..................................................................98 NMP Calendar of Events ........................................................................99 NMP Resource Registry ........................................................................102
D V E R T I S E R S Company
Web Site
Page
Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................34 & 35 NAMB+ ............................................................ www.nambplus.com ......................................................25 NAPMW ............................................................ www.napmw.org ....................................................74 & 95 NAWRB ............................................................ www.nawrb.com ............................................................31 New York Community Bancorp, Inc. .................... www.nycbmortgage.com ................................................19 NRMLA.............................................................. www.nrmlaonline.org ....................................................92 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................11, 89 & Inside Back Cover Radian Guaranty ................................................ www.radian.biz ............................................................79 REMN Wholesale ................................................ www.remnwholesale.com ......................................MT1 & 5 Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................81 Secure Insight.................................................... www.secureinsight.com ..................................................15 TagQuest .......................................................... www.tagquest.com ........................................................67 The Bond Exchange............................................ www.thebondexchange.com ..........................................88 The National Real Estate Post.............................. www.thenationalrealestatepost.com ..............................83 United Wholesale Mortgage ................................ www.uwm.com ........................................................52-53
APRIL 2016 Volume 8 • Number 4 FROM THE
publisher’s desk
The Critical Importance of Industry Leadership
Leadership may not seem like a complex concept. After all, we all know a leader when we see one. But putting a definition down on paper is as difficult as defining a concept like truth, beauty or honor. Leadership is also our Special Focus for this April 2016 issue of National Mortgage Professional Magazine. It’s hard to imagine a concept of greater importance for our industry today. In the pages of this issue, we’ll bring you stories that may challenge your concept of leadership. We’ll ask important questions, like what does it take to become a leader in today’s mortgage marketplace? Are leaders born or can someone be taught to be a leader? Is age a factor in good leaders? How do you attract leaders to your organization? What personality traits do you feel are most important to be a leader? And perhaps most challenging, once you find a leader, how do you keep them? But just talking about these concepts would never be sufficient to fully define what leadership means in our industry. For that, we need examples. That’s why we’ve included our 2016 Visionary Organizations in this issue as well. These are the companies that set trends, travel ahead of the curve and set the bar for their competitors. The companies in this year’s Visionary Organizations section have earned that designation for their inspiration to always strive to improve and go above and beyond to assist their clients. These great companies have successfully navigated our ever-changing mortgage industry marketplace and have remained on top. Where will the next group of visionary firms come from? We think they are already innovating, going where others have yet to go in a relentless search for what’s next. You’ll find their stories in our brand new NMP Next section, which we’re launching in this issue as well. Long-time industry trade publication editor Rick Grant leads this discussion as NMP’s special reports editor. His love of technology and innovation makes him well-suited to seek out the industry explorers who are leading the rest of us to what’s next. Even if you don’t see yourself as an intrepid explorer or fearless innovator, we hope the stories we bring you in this issue will impress upon you the importance of developing your own leadership skills. To that end, we’re very proud of our new NMP University, a new and innovative way for people working in our industry to get their continuing education, training and coaching they need to maintain their credentials, and succeed and become tomorrow’s leaders. NMP University will be led by mortgage industry training and coaching veteran, Ron Vaimberg and the online continuing education will be Powered by Mortgage Educators and Compliance (MEC). You’ll find more information about NMP University in the next issue and in your e-mail inbox soon. For our own part, we haven’t focused on being a leader so much as shining a bright light on the leading companies and executives working in our industry. But our growth over the past few months is a true testament to the fact that we take leadership seriously in our own organization. The issue you’re holding comes in at 104 pages, making it the largest issue of National Mortgage Professional Magazine we’ve ever delivered. We’re very proud of this accomplishment and proud to be bringing you all of the stories packed into this issue. We hope you enjoy them and they serve you well. Lastly, a leader is a mirror of the team that supports them, and with that said, I thank the entire team at NMP for the efforts they put in each day that has made NMP a growing success story that I am proud to lead. Sincerely,
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
Rick Grant Special Reports Editor (570) 497-1026 (direct) (516) 409-555, ext. 311 rickg@nmpmediacorp.com
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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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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.
Joel M. Berman, Publisher-CEO l NMP Media Corp. l joel@nmpmediacorp.com National Mortgage Professional Magazine is published monthly by NMP Media Corp. • Copyright © 2016 NMP Media Corp.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S
EDITORIAL CONTRIBUTORS Featured Editorial Contributors Richard M. Bettencourt Jr., CRMS, CMHS
Editorial Contributors Gavin T. Ales
Andy W. Harris, CRMS
Amy Bergseth
David Lykken
Vladimir Bien-Aimé
Pam Marron
Jeff Bode
Ted W. Tozer
Michael Boggiano
Andrew Liput
Laura Burke, MBA, MS, MIS, CFE, EA
Lisa Coleman
Chad Jampedro
Jeffrey Tesch
Kerry W. Elam
Carl Markman
Sarah Valentini
Casey Fleming
Wes Miller
Marc Wayshak
Michael Groff
Bubba Mills
Eric Weinstein
Brad Herbert
Elizabeth Morales
Fowler Williams
Tom Hutchens
Brian Sacks
Kerry Wirth
RENO STRIKES BACK
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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. 16325 Boones Ferry Road, #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 1300 South El Camino Real, Suite 505 l San Mateo, CA 94402 Phone: (650) 409-2850 l E-mail: shellvelez@gmail.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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Sub-Prime: Establishing a New Track Record By Tom Hutchens Sub-prime, or “non-prime,” mortgage lending returned to the market almost three years ago and with it, many critics who understandably voiced concerns that history would repeat itself. Lenders who decided to venture into this new landscape and tap a borrower base of Americans unable to secure traditional financing were faced with an uphill battle on how the general population perceived sub-prime. Today’s products aren’t the same as the sub-prime loans that led to the housing crisis. In fact, sub-prime/non-prime today is quite different. New regulations have helped to ease these products back into the market. The skeptics are starting to come around and realize that today’s mortgages are proving to be much less risky than their predecessors. Unlike the sub-prime loans of 2006, today’s loans have guidelines in place to alleviate risk. Here is a breakdown of what’s different today:
THE
elite performer Migrate to Millennials By Andy W. Harris, CRMS
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l Ability-to-Repay (ATR): ATR is one of the many regulations that resulted from the Dodd-Frank Act. ATR requires that originators look at a potential borrower’s complete financial picture to make sure their existing debt obligations plus the new loan amount won’t surpass a reasonable percentage of their income. Despite popular belief, nonprime loans still need to adhere to ATR standards. l Skin in the game: Higher downpayment requirements mandate that borrowers provide a significant contribution towards closing the loan. Borrowers with the riskiest credit profiles are required to put down the highest downpayments to further compensate for that risk. This practice of ensuring prudent loan-to-value (LTV) ratios lessens the chances of default. l No prepayment penalties: Today’s sub-prime loans do not come with a pre-payment penalty on them. At any time, a borrower can refinance to a conforming loan without having to pay a penalty on their existing loan. l Appraiser Independence Regulation (AIR): Another result of DoddFrank Act regulations, AIR ensures that appraisers are truly independent and the LTV is accurate. Prior to Dodd-Frank, appraisers worked for the loan originators. This was a clear conflict of interest, but new regulation removes that conflict. l Better credit scores: The average credit score of sub-prime loans in 2006 was 580. Angel Oak Mortgage Solutions portfolio of non-prime loans’ credit scores average about 680. The credit quality of these loans has increased significantly in the new era. Although non-prime mortgages fall outside the QM safe harbor, the next generation of non-prime lending is proving to be very safe. In fact, Angel Oak Mortgage Solutions has only had three loans go into default since we started originating two-and-a-half years ago. The challenge with these new regulations, however, is that they require a well-documented, manual underwriting process that cannot be automated; however capable lenders with expertise in due diligence procedures stand to take advantage of bringing these products back to market while avoiding excess risk. 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.
SPONSORED EDITORIAL
ost of us have heard that the average age of a mortgage loan originator (MLO) today is 54 years of age. That number may vary a little, but needless to say, the mortgage industry is in dire need of younger talent. This number should open our eyes to look down the road and see that we may have a problem if we don’t train and educate the next generation to grow in this industry. This is important for our industry and certainly important for the consumers we serve. We must embrace Millennials in this industry and strategically recruit and train them the right way to succeed and be attracted to what this great industry has to offer. I’ve battled with this for the last several months, specifically as a business owner through our growth and demands. Do we hire experienced mortgage loan originators or do we hire green and train? Unfortunately, re-training people already in the business with bad habits I find to be much harder. With a quickly changing industry requiring constant adaptation and speed, I’ve found it’s certainly hard to teach an old dog new tricks. I’d rather have a fresh, new and motivated employee with limited experience and a clean slate than one with quantity (not always quality) experience or challenging habits. I believe Millennials get an unfair reputation at times with being entitled or lazy. The lazy ones are certainly out there, but there are also thousands of very intelligent and motivated Millennials I believe offer huge opportunities to our industry. Many of them are more innovative due to modern knowledge and technological abilities. They were raised in an environment where any data they seek is literally at their fingertips. They can adapt well and need little training when it comes to most computers and systems. That certainly cannot be said for most of those from older generations. Here are a few statistics according to the American Bankers Association (ABA) that I find somewhat shocking:
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l Born between 1980-2000, Millennials are the largest generation in American history, at 83.5 million people. l By 2022, they will comprise 44 percent of the nation’s workforce. l Only 26 percent get married before the age of 32. l Eighty-six percent put money into savings every month. l Seventy-five percent of those who are college graduates have student loan debt, averaging $29,000. I don’t know about you, but if you actually think about these statistics I see a huge market of untapped potential. Think about the stats and what our industry could offer young entrepreneur-spirited individuals. The sky is the limit, but they need the right training. We work in a great industry with unlimited possibilities. Finding the right motivated younger talent could be a huge asset to your team, and of course, a great opportunity for someone entering this industry today. I suggest that we all brainstorm with our teams to motivate, recruit and train new younger talent in this industry to get that average age down moving forward. 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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n Montana Mortgage Professional Magazine n APRIL 2016
We know; you need a lender who’ll keep your profit margins high and
NationalMortgageProfessional.com
A LOAN RATE SHOULD INCREASE YOUR PROFIT MARGINS, NOT YOUR BLOOD PRESSURE.
Recruiting, Training and Mentoring Corner Assessing the Marketing Skills of a Rookie Candidate
By Dave Hershman e have previously painted the “picture” of a typical manager in the industry because most sales managers and owners must personally produce, recruit, hire, train and coach. For most of these managers, producing was a full-time job before they became a manager. Now that same person must split up their time among these tasks:
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l l l l l l l
Personal production Supervising/coaching Fighting fires Attracting candidates Interviewing Administrative tasks And more
The time spent among these tasks is not homogenous by any means. The majority of the time is spent producing, fighting fires and on administrative tasks. For example, a typical producing sales managers spends an average of 50 percent or more of their time within the personal production category. It is important to recognize this fact because it leads us to understand why the industry produces managers as opposed to grooming leaders. Not only have we put our managers in a position in which they are more likely to spend their time reacting and putting out fires rather than leading. In addition, we give these same managers little guidance as to how to make the transition from manager to leadership. After painting the picture of the industry, we must next look at the definition of the term leader. If you asked one-hundred different management experts, you would get 100
different answers. We prefer something very simple: Managers “manage” situations, while leaders change situations through the implementation of positive forces. Of course, this definition is worthless without elaboration in the form of examples which distinguish between leadership and management: l A manager has goals, while a leader also has a long-term vision of where they would like to lead their team. It is from this vision in which an organization’s goals must be formulated. For employees—understanding the vision is essential so that they can become more than just an employee, but an integral team member. l A manager tells people what to do. A leader leads by example. For example, how does the leader react in a crisis? Do they panic or do they lead the team through the crisis professionally? l Managers micro-manage, while leaders delegate. By delegating responsibility and not micro-managing, leaders let their team members determine what they should be accomplishing with regard to helping the organization achieve their long-term vision. l A manager quells fires while a leader prevents them. The foresight to prevent fires is a very important example of leadership. l A manager communicates when necessary. A leader communicates proactively. Going back to the example of having a long-term vision, the leaders must communicate that vision clearly. When does a manager think that communication is neces-
“Managers ‘manage’ situations, while leaders change situations through the implementation of positive forces.” sary? Usually when things go wrong. Then it is time for a long e-mail, new policy or a meeting. l A good manager implores their loan officers to follow-up, from the prospect stage to closing their pipeline. Leaders lead by example in this regard as well, whether they are managing their own pipeline or following with their staff. If the manager does not return phone calls and email on a timely basis, how can they expect their loan officers to do the same? l Good managers hire producers. Leaders retain those producers. Leaders work hard to uncover and meet the needs of their employees. That means they must probe deeply and be a great listener. This is again where follow-up and communication skills are essential. It is sometimes not easy to determine where our employees need help, however, spending the time and effort to find out is critical. l Good managers are great talkers. Leaders are great listeners. Yes, we often have to teach and inspire as leaders. But if we don’t listen, we will never find out what our employees really need. Even in interviews, we should be asking questions and listening, rather than talking. l A leader’s integrity can never be in question. Again, this brings us back to being an example. If we are not “THE” example in this regard, how
can we not expect the same from our loan officers and operational staff? Many walk a fine line in this industry, but leaders must stand very clear of this line. l Managers are reactionary, but because leaders are proactive, they are likely to be more consistent in their direction of leadership. Managers are more likely to schedule a staff meeting when there is a catastrophe or send out an “effective immediately” e-mail? Leaders schedule meetings on a regular basis to prevent these issues from arising. Employees can count on their leader’s reaction day-to-day, while the reaction of a manager will vary. l A great leader carries a positive message all the time, while the manager is not as consistent in this regard. The leader’s positive message will influence team members to be more positive, thus increasing the effectiveness of the organization. This positive message should include thanking employees and clients often. Even the way the message is carried out is important. When a leader is “criticizing or pointing out a mistake,” it should be done in private. When a leader is lavishing praise, this should be accomplished in public. Most importantly, managers realize that recruiting is one of their most important functions, yet most managers dedicate the smallest portion of their time to this task. The result is a
smaller team whose members are not of the highest quality. The time needed to manage this team which is generating little income is very. disproportionate. The result? The manager spends more time producing because they can control the outcome and then they spend even less time recruiting. This is precisely why one key to great leadership is a long-term vision of the future. The vision is to build a large quality team which increases profits and overrides. While the income of the sales manager may not rise, the office or division will not be as dependent upon one person’s production. What if the manager becomes ill and the level of production suffers or stops completely? If the manager has a large and productive office, the profitability of that office will not suffer to the same extent. It typically requires great vision to begin spending time on a task that will bring longer-term rewards, but perhaps sacrifice short-term benefit. How might we bring our time and priorities into greater equilibrium? It is easy for us to say—block an hour each day to recruit. But someone directing the manager to block the time does not make the time available. Anytime one has too many tasks to undertake and not enough time to accomplish these tasks, there are only two choices: l Prioritize the tasks: Again, this is an example of what great leaders do, they decide what is more important and focus upon these tasks. Other tasks may be delegated to others, postponed or even eliminated.
We will end this column with an exercise that will hopefully help us start thinking like a leader, instead of a manager. The question is-how can the implementation of these rules help you increase the efficiency of your recruitment efforts? It has been well-established by the information we have introduced that there are many fundamental differ-
ences between managers and leaders in this industry. Our industry has a tremendous number of managers. However, what we need is more leadership. Hopefully we can continue to help our managers make the transition in this regard. 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.
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The implementation of synergistic principals will not only increase productivity, it will also help lessen the stress of manager who has several areas of responsibilities, all of which could be full-time jobs by themselves. In my book, More Income With Less Stress, I introduce “The Seven Rules of Maximum Synergy Marketing.” These rules will help managers achieve more with less time, energy and money. Loan officers also benefit from the use of these principals as there are many parallels between recruiting and sales. The greater proficiency managers gain with regard the use of these concepts, the more effective they will be as mentors to their loan officer team. As a matter of fact, the implementation of this concept as way to achieve two management objectives is an illustration of the use of synergy in itself. The rules are designed to help one open their eyes to the opportunities they are missing. To implement these,
1. Everything you do must have a second objective. 2. If you are marketing by yourself— you are wasting synergy. 3. Some targets are more effective than others. 4. Some tools are more effective than others. 5. Everything you do can be made
more effective through additional doses of synergy. 6. Do not market without a response mechanism. 7. Do not market unless you are delivering value.
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l Use synergy: If you want to get more done in less time, you will need to find a way to achieve more than one goal with the same activity. We will delve into this idea in a future column.
managers will have to change the way they think about the industry and management in general. This is a major step which will help increase efficiencies, but also help differentiate managers from their competition. Here are the rules:
DocMagic Formally Launches New eClosing Solution
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DocMagic Inc. has announced the formal launch of its fully integrated eClosing solution that electronically transforms the entire mortgage process from initial eDisclosure to final eClosing through investor eDelivery. DocMagic’s total eClosing process seamlessly integrates its eDocument library, SMARTDoc eNote with eSignature, eNotary, MERS eRegistration, eDelivery and eVault services in a comprehensive end-to-end eClosing solution that delivers substantially faster closings, total data transparency, superior regulatory compliance and maximum process efficiency. The total eClosing solution is also seamlessly integrated into DocMagic’s SmartCLOSE collaborative closing portal, offering a secure, centralized online environment for lenders, settlement providers and other parties to share, validate, audit, track and collaborate on documents, data and fees backed with a 100 percent TRID compliance guarantee. The new process is easily accessible from within SaaS-based SmartCLOSE and on-premise SmartSAFE XL systems, including the eSigning, eDelivery and eVaulting of all documents. DocMagic’s eMortgage solutions have been vetted and approved by Fannie Mae and MERS to support all three eMortgage categories for eVault, eNote and eClosing. DocMagic’s participation as a leading player in numerous eClosing pilots, including the CFPB’s eClosing Pilot initiative last spring has led to the rapid advancement of eClosing adoption as a solution for regulatory compliance tracking, reducing data errors, data transparency, and bringing borrower knowledge and satisfaction to the loan process. “The total eClosing solution is an outof-the box, easy to implement, fully paperless, patented solution that combines the most advanced functionality and continuous compliance tracking with robust borrower and lender friendly user features,” said Dominic Iannitti, president and CEO of DocMagic. “Borrowers can communicate with their
lenders and settlement agents and eSign documents while DocMagic runs continuous automated compliance audits throughout the entire loan process, guaranteeing compliance on factors effecting the salability of your loan, from TRID tolerance levels to compliance with anti-predatory lending and higher-priced mortgage loan laws, all while tracking every iteration of the data and speeding up the closing process.” “The DocMagic total eClosing solution is revolutionizing the traditional paper mortgage process and the timing of this couldn’t be better,” said Tim Anderson, director of eServices at DocMagic. “With the electronic data verification, delivery and record retention requirements of TRID, lenders have to demonstrate proof of compliance, control and accountability of the entire mortgage process. We have developed only platform in the industry that integrates and supports all key eMortgage functions within a single solution. The total eClosing solution provides a full electronic process in a one stop solution—which is truly revolutionary.”
CMG Financial Automates Appraisal Process Via eTrac From Global DMS
Global DMS has announced that CMG Financial has streamlined the management of its appraisal process from start to finish using Global DMS’ eTrac platform. This has enabled CMG to work with its AMC providers that have disparate systems through a single interface with eTrac. As a result, processors and brokers no longer have to log into each AMC’s system to place appraisal orders. From within eTrac, CMG users can order and assign appraisals, track them with real-time status, review appraisals, and they are then automatically delivered to the Uniform Collateral Data Portal (UCDP) in full
compliance and without errors or missing data. “After we implemented eTrac, our AMC assignments became automatic and thus it really simplified and sped up our orders,” said Peter Gilbert, chief credit officer at CMG. “The eTrac Workflow Engine also played a significant role in the implementation by automating notifications and file delivery to the ordering parties and borrowers. eTrac has made our appraisal process very easy and efficient and we always know that we are compliant and have quality appraisals.” Global DMS’ Workflow Engine eliminates manual intervention, automatically handling many intricate and disparate tasks in CMG’s unique appraisal process. Custom business rules were applied to tailor CMG’s appraisal management workflow to their preferences and specific internal procedures. “CMG runs numerous appraisal orders through our system each month with an elevated level of workflow-driven efficiency,” said Vladimir BienAime, president and CEO of Global DMS. “The fact that eTrac effectively centralized CMG’s utilization of multiple AMCs and automated nearly all appraisal functions using our Workflow Engine speaks volumes about the flexibility and scalability of our platform.” eTrac facilitates far-reaching compliance functionality that is proven to automatically keep lenders compliant with changing state-based rules, federal laws, the Consumer Financial Protection Bureau (CFPB) and the Dodd-Frank Act.
Credit Plus Launches FACTCheck for Increased Tax Transcript Accuracy
Credit Plus Inc. has announced the availability of FACTCheck, a new “fact checked” report that can be added to IRS 4506-T orders. The report provides
lenders with an overview of income reported to the IRS, calculates and summarizes historical income and determines income stability. At the same time, FACTCheck tests for ATR compliance and identifies what further action and any additional supporting documents, if any, are needed. By adding this product to 4506-T orders, lenders can accelerate their process to just minutes per loan, eliminate manual underwriting errors, and show that due diligence was performed which assists with the sale of loans to the secondary market. “FACTCheck streamlines the tax transcript analysis process into an auditable format which helps lenders speed up, standardize, and document their underwriting process,” said Greg Holmes, national director of sales and marketing at Credit Plus. “The report offers our customers a way to improve their income quality analysis and results while reducing their legal and repurchase risks.”
ResMac Releases Marti Version 5.0
ResMac Inc. has announced the release of Marti 5.0 to support automated Integrated Disclosures (TRID). This proprietary software program will automate several of the manual processes used to support compliance and improve efficiencies in underwriting and customer closings. Several screens have been redesigned to best support “ease of use” for ResMac’s customer base, making the overall experience that much more compelling, efficient and improved. Right behind this release will be Marti version 5.01, which will support on-demand initial through closing documents for all approved customers. In the third quarter, ResMac will release its new automated LE for approved customers—fees warranted and derived from a third party making costs to cure a thing of the past.
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Caliber Whol Wholesale esale finished Wholesale esale Lender Lender 2015 as the #3 Whol 2015 2015, 15, w we e ion.* During 20 in the nation. 77.5% 7..5% .5 ffunded unded $8.35 billion - a 77 from om our 2014 2014 increase fr increase ffunding unding figur es. figures.
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Wholesale Lending
*Rankings *Rankings Source: Source: Inside Inside Mortgage Mortgage FFinance. inance. Caliber Home Loans, Inc., 3701 3701 R Regent egent Boul Boulevard, evard, Ir Irving, ving, TX 7506 750633 (NMLS # #15622). 15622). 1-800-40 1-800-401-6587. 1-6587. C Copyright opyright ©20 ©2015. 15. All Rights R Reserved. eserved. Equal Housing Lender. Lender. For For real real estate estate and llending ending pr professionals offe essionals onlyy a and nd not ffor or distribution tto o cconsumers. onsumers. This ccommunication ommunication ma mayy ccontain ontain information information that is privileged, privileged, cconfidential, onfidential, llegally egally privil privileged, eged, and and/or d/ /or e exempt xempt fr from om discl disclosure osure und under er applicabl applicable e la law. w. Distribution tto o the g general eneral public is prohibited. prohibited. Caliber Home Loans is an Equal Opportunity Opportunity Empl Employer. oyer.
n Montana Mortgage Professional Magazine n APRIL 2016
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EWSFLASH l APRIL 2016 l NMP NEWSFLASH l APRIL 2016 l NMP NEWSFLASH l CCSBS Seeking Exam Experts: NAMB Urges Members to Apply as Subject Matter Experts
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NAMB—The Association of Mortgage Professionals wanted to remind the nation’s mortgage professionals that the deadline of April 29, 2016 is quickly approaching for Subject Matter Experts (SME) to submit their desire to work on the Nationwide NMLS Exam. The Exam was started years ago as a licensing requirement of the SAFE Act. The Exam must undergo changes as the mortgage industry undergoes changes. For example, when the SAFE Act was passed and the initial exam written, there was no TRID rule. The Exam was reviewed and updated, and now it is time to update it again. The SMEs will be selected with assistance by the Conference of State Bank Supervisors (CSBS) and the State Regulatory Registry LLC (SRR) in a recruiting process for subject matter experts to serve on SSR National Test Maintenance Committees. “Some of the best Subject Matter Experts in the field of residential mortgages are members of NAMB, and I encourage our members to apply for this important opportunity,” said Rocke Andrews, president of NAMB. NAMB also noted that there are time commitments and experience requirements. Selected SMEs will be initially trained and asked to write proposed test questions for the National Exam. The training sessions are several hours in duration, as well as ongoing and additional training sessions as materials are amended. Attendance is required at all training meetings. Committee meetings are scheduled to begin quarterly, beginning in June, again in September and finally in January 2017. SMEs should have a minimum of three years of experience in the residential mortgage lending arena and be considered an expert. To be considered and nominated, please fill out the application found online at 2016smesurvey.questionpro.com.
Study: TRID Adds $209 to Loan Costs
significant pickup in borrower satisfaction, despite somewhat slower application-to-closing times,” he said. “At the end of the day, improving the borrower’s experience is a main objective of TRID, and in an increasingly competitive origination market, it is also a primary goal of lenders as well.”
FHFA Planning for Post-HARP Market It appears that loan transparency comes with a highly visible price tag: A new study from STRATMOR Group has reaffirmed that the changes brought by the TILA-RESPA Integrated Disclosure (TRID) rule has jacked up the price of loan origination. “On average, since October 2015, TRID has increased lender back office fulfillment and post-closing costs by an average of $209 per loan, and lenders are estimating that only about 17 percent of those costs can be recovered through additional charges,” said Matthew Lind, STRATMOR senior partner and founder. Still, mortgage professionals are making the best of a difficult situation. The STRATMOR study found that 87 percent of survey respondents had either fully or mostly implemented their TRID requirements, with only one percent admitting that their efforts were “way behind.” Seventy-two percent of smaller mortgage companies and 80 percent of mid-sized independents had fully implemented their TRID changes, whereas only 33 and 44 percent of small and mid-sized banks have accomplished that duty. Banks, in particular, appear to be most burdened by TRID, with 31 percent of bank respondents bemoaning that their experience under TRID as either “difficult” or “terrible”—in comparison, only 16 percent of independents shared that level of grief. But on the whole, Lind insisted that today’s problems can only lead to a better customer service experience. “TRID seems to be associated with a
With the Home Affordable Refinance Program (HARP) set to expire at the end of the year, Federal Housing Finance Agency (FHFA) Director Mel Watt is seeking to lay the foundation of a market that will not leave at-risk homeowners in difficult financial situations. Speaking recently in Washington, D.C. at the Public Policy Luncheon sponsored by Women in Housing and Finance, Watt noted that his agency and the government-sponsored enterprises were working with to lenders, mortgage insurers, and investors to study a post-HARP endeavor that would accommodate high loan-tovalue (LTV) borrowers. “During our outreach discussions, we are reminding industry participants that borrowers who previously completed a HARP refinance will not be eligible to refinance under a new high-LTV program,” Watt said. “When we conclude our outreach, the enterprises will publish an announcement that reflects the eligibility guidelines and product terms that we believe will meet the needs of high-LTV borrowers in the future.” But with nine months to go before HARP runs its course, Watt stated that the FHFA would work ensure borrowers
can take full advantage of that program’s benefits. “Despite extensive outreach efforts by the enterprises and their lender partners, over 360,000 borrowers nationwide still remain both eligible for HARP and able to benefit financially from HARP,” said Watt. “FHFA and the enterprises are attempting new methods to raise borrower awareness through social media and Webinars, and we are asking stakeholders to help us get the word out about HARP before the end of the year.” Also during his speech, Watt briefly alluded to the once-contentious but now barely-mentioned subject of principal reduction with a promise that he would decide in the next 30 days whether it was officially a non-issue or if there was a “win-win” approach to this strategy for future policy planning. “So, while I don’t have an answer today, I invite you to stay tuned for more on this in the near future,” he said. “As always, our decision and the reasons for making it will be documented and transparent.”
House Passes SCRA Foreclosure Extension Protection
The U.S. House of Representatives passed the Foreclosure Relief and Extension for Servicemembers Act of 2015, which extends foreclosure protection for military homeowners from the current 90-day period to a one-year period beginning in January 2018. The bill is a House companion to S.2392, which passed the Senate in December. The foreclosure protection element of the Servicemembers Civil Relief Act (SCRA) expired at the end of last year, but the extended protection will be retroactive to Jan. 1, 2016, when the bill is signed by President Obama. “When our servicemembers come
home they shouldn’t have to fear losing their homes as they transition back to civilian life,” said Rep. Steve Stivers (R-OH), who co-sponsored the bill with Rep. Stephen Fincher (R-TN) and Denny Heck (D-WA). “The foreclosure protection extension will give them the time they need to get back on their feet financially and begin their new lives post military service.” The legislation was backed by a coalition of veterans’ organizations and housing and financial services trade associations. David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA), commended the House vote. “MBA applauds the House passage of an extension of the SCRA’s important foreclosure protections,” Stevens said. “SCRA provides the brave men and women of our military with the certainty they won’t lose their home when they transition back to civilian life. That’s something that should never happen. Our industry is committed to helping members of the military stay in their homes and we are grateful Congress has renewed this vital homeownership tool.” Separately, the Consumer Financial Protection Bureau announced that it received approximately 2,800 complaints from military personnel related to mortgages during 2015. The majority of complaints were related to servicing issues, including loan modifications, collections and foreclosures.
GSF Mortgage Approved as a Freddie Mac Servicer/Seller
associations have openly questioned the Consumer Financial Protection Bureau’s (CFPB) regulatory efforts. At a hearing yesterday before the Senate Banking Committee, Mortgage Bankers Association (MBA) Senior Vice Trade Groups Call President of Legislative and Political Affairs Bill Killmer urged the CFPB to Out CFPB on provide clear “rules of the road” whenMessage Confusion ever it plans to create new rules or to update both existing guidelines and the interpretations of longstanding policies. Killmer also repeated an oft-stated industry concern regarding the CFPB’s eagerness to aggressive enforce its will. “Five years after the enactment of Dodd-Frank, enforcement actions present very significant challenges to the Three leading financial services trade residential mortgage industry,” Killmer
said. “Unfortunately, the CFPB has recently appeared to take a ‘regulation by enforcement’ approach, offering industry participants little guidance and simply instituting claims against them—often using new interpretations of old rules … Unfortunately, despite lenders’ good-faith efforts to comply with the CFPB’s rules—including using compliance management systems, seeking advice from outside counsel and seeking clarity directly from the CFPB—ambiguities remain and answers, even among CFPB employees, are inconsistent. Oral guidance, whether provided privately in response to individual inquiries or on CFPB’s continued on page 16
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GSF Mortgage has announced that it has been approved as a single-family housing Freddie Mac seller/servicer. Freddie Mac was chartered by Congress in 1970 to purchase loans from mortgage lenders. These mortgage lenders could then replenish their supply funds and in return have more capital available to lend to more borrowers. GSF Mortgage is pleased to share in Freddie Mac’s mission to expand opportunities for homeownership and affordable housing. In 1995, GSF Mortgage was formed to provide solutions for borrowers pursuing homeownership. For more than 20 years, GSF Mortgage has offered loan programs eligible for Freddie Mac’s guidelines. The company is excited to expand their offering and execution of available products. “We are very pleased and excited to receive our seller/servicer approval with Freddie Mac,” said GSF Mortgage President Chad Jampedro. “We see Freddie Mac holding a clear advantage in the marketplace for products and services. This approval strengthens GSF’s overall product offering and servicing operation and provides yet another strategic option for our borrowers and referral partners.”
GSF Mortgage is now approved with all of the agencies: Freddie Mac, Fannie Mae and Ginnie Mae. This means that the company is able to sell directly to these agencies and offer all agency products.
Industry Updates: April 2016 By Gavin T. Ales FHA Corrects Incorrect Maximum LTV Factor for 203(k) Loans Pursuant to FHA INFO #16-17, dated March 17, 2016, the FHA corrected an error that appeared in the Single Family Housing Policy Handbook 4000.1 (SF Handbook) related to an incorrect Maximum LTV Factor at Step 3.F, Determining Loan-To-Value Factor for Maximum Mortgage Eligibility, for the Standard 203(k) Purchase Program and Limited 203(k) Purchase Program. For Standard 203(k) and Limited 203(k) purchases with a Minimum Decision Credit Score (MDCS) at or above 580, and for No Credit Score with Manual Underwriting, the correct Maximum LTV factor is 96.5 percent. Updated Form: HUD/VA Addendum to URLA (Form 92900-A) In FHA Info #16-16, the Federal Housing Administration (FHA) recently published the final version of the revised HUD/VA Addendum to the Uniform Residential Loan Application (Form 92900-A). This updated form is effective for all FHA Case Numbers assigned on or after Aug. 1, 2016. Note that the revised version of the HUD/VA Addendum may not be used until its effective date.
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FHA Announces SF Handbook as Single Source for Single Family Housing Title II Mortgages Pursuant to FHA INFO #16-15, dated March 14, 2016, the FHA announced significant updates to its Single Family Housing Policy Handbook 4000.1 (SF Handbook), making it an end-to-end source for almost all Single Family Housing Title II forward mortgage policy. The SF Handbook may now be used as a single source of Single Family Housing policy for: (1) Obtaining and maintaining FHA approval; (2) Originating almost all Title II forward mortgage products and programs; (3) Obtaining an FHA insurance endorsement; (4) Performing servicing and loss mitigation functions on FHAinsured mortgages; and (5) Understanding and applying quality control practices. Fannie Mae Issues Selling Guide Announcement SEL-2016-02 Fannie Mae issued Selling Guide Announcement SEL-2016-02 to announce updates to the following: (1) Continuity of obligation; (2) Lender self-report obligations; (3) Indemnification for losses; (4) HomeStyle Renovation mortgage recourse obligations; (5) Definition of Relocation Loan; (6) Miscellaneous Selling Guide updates; (7) Revisions to the Pennsylvania security instrument and new notes; (8) Updates to the Special Feature Codes list; and (9) Publication of Fillable Rental Income worksheets. To view SEL2016-02 and the Executive Overview of Selling Guide Updates, please access Fannie Mae’s Web site. Updated Forms: Pennsylvania Mortgage and Notes As announced in Selling Guide Announcement SEL-2016-02, dated Feb. 23, 2016, Fannie Mae and Freddie Mac have updated the Pennsylvania Mortgage (Form 3039) and created state-specific notes for Pennsylvania as a result of recent judicial decisions. The updated security instruments and notes have been posted on Fannie Mae's Web site. While lenders may begin using these updated forms immediately, use of these forms is mandatory, beginning Aug. 1, 2016. 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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nmp news flash continued from page 15
Webinars, does not address the need for authoritative written guidance issued broadly to industry.” Killmer also cited the implementation of the TRID rule last fall as an example of a communications malfunction by the CFPB. “At its core, TRID represents the largest restructuring of the residential mortgage application-to-closing process in nearly 40 years,” Killmer said. “Implementing this new rule required major changes to industry systems and business processes as well as thousands of hours of training. In light of this complexity, the CFPB announced prior to the Oct. 3 effective date that it would take into account ‘good faith efforts’ by industry to comply with the rule. Unfortunately, the CFPB did not provide a timeline for this good faith window, nor did it define the scope of good faith compliance.” Separately, Richard Hunt, president of Consumer Bankers Association, used a speech before a banking trade publication conference to deride the agency’s consumer complaint database as being “not even a better version of Yelp,” adding that the information provided is not verified before being made public. “When we think the CFPB is wrong, we go after them,” said Hunt, according to coverage of his presentation from Auto Finance News. “When we think they are right, we give them credit. And I think the CFPB is dead wrong about their portal system.” Speaking at the same conference, Camden Fine, president and CEO of the Independent Community Bankers Association (ICBA), shared Hunt’s concerns. “More concerning is that they misuse the statistics from the portal,” he said. “They are not transparent, and we don’t know how they are slicing and dicing that data. In fact, they can say anything they want about a bank, depending on how they ‘cook the books,’ so to say.”
pret. Note that the cities with the biggest price increases are successful tech, entrepreneurial cities in many cases. So maybe people kind of believe in these markets as their salvation or their hope.” Shiller pointed out that while home prices are on the rise, the emotional value that people invest in housing is not as strong as in the pre-bubble era. “People aren’t as impressed by homes anymore after they saw how they collapsed in price with the financial crisis,” he continued. “So it’s not such a clear case. I don’t think people are as impressed by big McMansions anymore as they used to be.” Nonetheless, Shiller did not recommend that people forego housing as an investment. “The other thing about housing is that if you put yourself into a mortgage and you pay it off, you’re putting yourself into a saving program,” he stressed. “A lot of people don’t save outside of some kind of a discipline device like that. So in that sense housing is a good investment.” The latest S&P/Case-Shiller Home Price Index U.S. National Home Price Index recorded a 5.4 percent annual increase in January, while the 10-City Composite showed a 5.1 percent gain for the year and the 20-City Composite’s year-over-year gain was 5.7 percent. David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, warned that if “home prices continue to climb at more than twice the rate of inflation, the low inventory of homes for sale—currently about a five month supply—means that would-be sellers seeking to tradeup are having a hard time finding a new, larger home.”
Investment Home Sales Soar in 2015
Shiller: Housing is “Driven by Psychology”
The co-founder of the S&P/Case-Shiller Home Price Index has studied the latest round of home price increases and has concluded the upward activity is being fueled by emotional impulses rather than economic reality. “These markets, I think, are substantially driven by psychology,” said Robert Shiller, a Yale economics professor, during an interview on the Fox News show “Cavuto: Coast to Coast.” “And the psychology now is a little bit hard to inter-
If new data was any indication, 2015 was the “Year of the Investment Home,” with the sector experiencing its first sales rise in five years. However, last year was also an uncommonly dismal period of vacation home sales, with an acute decline in volume. According to new data from the National Association of Realtors (NAR), investment home sales saw a seven percent surge last year to an estimated 1.09 million, up from 1.02 million in 2014. Owner-occupied purchases took an upward turn by 15.9 percent to 3.74 continued on page 30
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Casey Stengel, Ernie Banks, Stan Musial … and Compliance? By Andrew Liput In honor of the upcoming baseball season, I am republishing a column I wrote for National Mortgage Professional Magazine back in March of 2014. I hope you enjoy it! Spring is in the air, and for sports enthusiasts like me, that means one thing: Spring training and the start of yet another baseball season. As I check out the Florida box scores, I cannot help but find some parallels between our National Pastime and the current state of the mortgage industry.
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l With the current down market, many lenders have thrown in the towel, and instead, are saying “Wait ‘til next year!” As the Brooklyn Dodgers found out time and time again (except for in 1955), a team that is focused on the future and not the present usually ends up on the losing side of the scoreboard. The Yankees beat the Dodgers nearly every year from 1947-1956 because their focus was “This IS next year!” Lenders who are focused on growth and success despite a down market are finding it. Those who are just waiting it out until next season may find that when the time comes they will not be fielding a team. l Casey Stengel, who led the Yankees to 10 pennants and who was saddled with managing the famously inept 1962 Mets, was known for his muddled language. Reporters often scratched their heads trying to understand his point, and as a result Casey became the story which often took the heat off of his players. The regulators in D.C. appear to be speaking in “Stengelese” these days. Thousands of pages of regulatory requirements that meander from topic to topic and leave lenders who now are responsible for implementing them thinking: “What in the world does that mean?” l Attitude is everything in life. Chicago Cubs star Ernie Banks loved baseball. He knew he was privileged to be paid doing something he really enjoyed, and when he arrived at Wrigley Field for a day game would often say, “Let’s play two!” I’ve noticed that those MLOs who really love what they do, who see their role as consumer-oriented and not just another way to make money, find success no matter how tight the market might be. They show up for work every day and instead of saying, “How am I going to get business,” say “I’m going to close two!” l Stan Musial was one of the most gifted and respected players of his time. When he arrived at the ballpark, he would say, “I think I’ll get three hits today,” however, he was not a stat hog. Near the end of his a career, he had to be told by a fan that he was approaching 3,000 hits. Musial was a team player first. He had a notorious workout regime (rare for that time), supported his teammates and encouraged preparation. Today, lenders need to encourage more teamwork and to take the appropriate steps to prepare for a new consumer- and compliance-focused marketplace. With the spring season here and everyone thawed from winter’s deep freeze, the industry is poised to see higher originations and closed loan volume. As volume increases in a risky purchase market, it will benefit forward-thinking lenders to incorporate more risk management and quality control steps to avoid the type of fraud and defective loans that marked the last purchase boom from 2002-2008. As Yogi Berra reportedly said, "It's like deja vu all over again!” Play ball! Andrew Liput is CEO of Secure Insight, a risk analytics firm offering vendor management services addressing settlement agent risk. He can be reached by e-mail at ALiput@SecureSettlements.com.
SPONSORED EDITORIAL
new to market continued from page 12
“We have been working on this project for over two years and to see it finally coming to production is extremely exciting,” said Nelson Haws, president and chief executive officer of ResMac. “Our goal as a company is to continually improve our service levels for our customers and we think this new release will set us apart from our competition.”
Wolters Kluwer Partners With eOriginal
Wolters Kluwer has announced that it has teamed with eOriginal Inc., a provider of digital transaction management (DTM) solutions, to add eVaulting and eClosing capabilities to its Expere dynamic document solution to deliver end-to-end eClosing functionality for its banking customers. The integration will allow Expere users to utilize eOriginal’s extensible, plug and play digital mortgage platform. The integration of eOriginal with Expere will also enhance the solution’s electronic delivery and mortgage loan document management capabilities throughout the mortgage lending process, including securitization to either a MERS or non-MERS buyer. Additionally, the integration will give lenders more flexibility in meeting the requirements of TILA-RESPA Integrated Disclosure (TRID) and the opportunity to better serve customers based on their preferences. “More consumers today are looking for the flexibility to execute their mortgage loan documents electronically,” said Stephen Bisbee, president and CEO of eOriginal. “It gives them the freedom to review the documents at their own pace with their own devices. By integrating eOriginal’s Digital Mortgage Platform with Wolters Kluwer’s Expere dynamic document solution, we will make it possible for thousands of lenders to offer eClosing capabilities to their customers. eOriginal’s platform is an extension of the highest volume econtracting platform in the market and vetted by all the parties on the backend of securitization including investors, rating agencies and issuers counsel.” The Expere engine is used by more than 2,000 financial institutions, including five of the top 10 U.S. banks and 60 percent of the top 30 banks to generate accurate and compliant loan documents across all 51 U.S. jurisdictions. The dynamic content library is maintained and warranted by Wolters Kluwer to help lenders meet the compliance requirements of today’s continually evolving regulatory changes. Through the combined solution, lenders will have access to Wolters Kluwer’s industry leading compliance content and eOriginal’s industry leading
encryption and security protocols, including tamper seals, data integrity checks, audit trail, access rights and secure storage. “Our collaboration with eOriginal will provide a tremendous value to our Expere customers, enabling them to leverage this combined functionality to develop an eClosing workflow that meets new strategic digital banking strategies,” said Steve Meirink, executive vice president and general manager of Compliance Solutions at Wolters Kluwer. “The integration will streamline the entire digital transaction management process for our customers, from compliance to the digital security measures and protocols needed to make the transition, giving them a tremendous competitive advantage.”
Indecomm Global Services Launches WebBased Platform for SelfEmployed Borrowers
Indecomm Global Services has added to its suite of proprietary Software as a Service (SaaS) platforms by launching IncomeAnalyzer, a Web-based platform that electronically reads and analyzes data, calculates qualifying income associated with the mortgage loan, and alerts the lender to underwriting conditions. Agency income documentation and calculation messages are clearly and visually presented to users, providing a consistent methodology for the successful approval of loans. “Indecomm’s Income Analyzer is a disruptive technology designed to relieve the industry of a very errorprone and manual process,” said Rajan Nair, CEO of Financial Services, Indecomm Global Services. “Income Analyzer addresses a primary reason for repurchase demands and errors today and also provides consistency and clarity into income calculations and decision-making. The goal is to deliver error-free files for servicing or sale and see the value on the bottom line. IncomeAnalyzer is an intelligent system driven by sophisticated OCR technologies and an interactive user interface. Its logic is triggered by the information within the borrower’s income documents. This will help our clients originate more loans at lower cost.” Income Analyzer allows lenders to systematically document compliance related to qualifying income through standardization of the math and underwriting conditions. This can reduce exposure to inconsistent handling of income that, in turn, can lead to fair lending problems. Income Analyzer stores the audit trail of all changes continued on page 24
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n Montana Mortgage Professional Magazine n APRIL 2016
The NYCB model serves the needs of Correspondent Lenders, Brokers, Community Banks and Credit Unions throughout the nation. Our proprietary web platform elevates your business by offering a
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NYCB Mortgage Banking’s core focus is developing lending solutions that enable you to win today while preparing you for even greater heights tomorrow. As the mortgage division of New York Community Bank, we’re proud to be building on the Bank’s over 150 years of strength and stability.
NAMB PERSPECTIVE The President’s Message: April 2016 Now What Can We Do? NAMB—The Association of Mortgage Professionals has just concluded its 2016 Legislative & Regulatory Conference. NAMB National isn’t until September … so what can loan originators do now? First off, if you are not a member of NAMB, visit NAMB.org and join now. If you are a member of the association, either you or your state leadership probably attended the Legislative Conference and spoke with your representatives and senators in D.C. and told them of the need to support and pass HB 3393 and its companion Senate bill. Now you need to set up appointments in the local offices of these legislators
and introduce yourself to them personally to ask for support of these initiatives. Send them e-mails reminding them of the need to support these bills and your availability to answer any questions they might have. If you are not comfortable answering their questions, please contact members of NAMB’s Government Affairs team for assistance. Valerie Saunders chairs this committee and is always available to answer calls and e-mails. She may be reached by phone at (866) 992-0785 or e-mail Valsaun@gmail.com. The election season is rapidly approaching, and if you have a candidate whom you would like NAMBPAC to financially support, e-mail John Stevens at JohnGStevens@gmail.com and make a request. He has forms available to
The CEO Perspective A Message From NAMB CEO Donald J. Frommeyer, CRMS
APRIL 2016 n Montana Mortgage Professional Magazine n
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20 Have you ever wondered what NAMB’s board of directors really does for you? Do you think that because it is a volunteer position, that everyone just sits around and does nothing? Well, I am going to let you in on a little secret. All of the board members from NAMB, from President Rocke Andrews, to the newly elected directors, all have full-time regular jobs. In addition, they serve on the board of NAMB for no income.
Take for instance your president, Rocke Andrews from the state of Arizona. Rocke works a full-time job to pay the bills. He puts in his eight-plus hours every day working for his employer. He also multitasks by attending meetings, giving interviews, writing articles, answering questions from the NAMB membership, and overseeing the day-to-day activities of the association. He works together with me as NAMB CEO, and with Harry Dinham, NAMB’s COO, on keeping everything running smoothly and on time. You have Linda McCoy from
Our Membership Matters By Kimber White As I prepare to attend the 2016 NAMB Legislative & Regulatory Conference in Washington, D.C. and lobby with my peers for our legislative concerns, I think back to my first conference and involvement with NAMB. It was the year 2012, and I had just became involved with my local and state trade association in Florida. I had
been in the mortgage industry for 24 years at the time, but had never joined my association, although I was always the first to complain about issues and fire off e-mails, but not participate. I had friends or colleagues in the industry who were members and they shared information with me so I really saw no reason to join. One day, I was invited to a local Realtor/mortgage networking meeting hosted by local mortgage association. I
make a request and NAMBPAC will review and decide how to best allocate our somewhat limited PAC funds. Even better, why not ask him how you can raise funds locally to go into the PAC and support more candidates who understand NAMB’s positions and needs? Nominations for your board are open, and NAMB needs more individuals nominated. Please visit NAMB’s bylaws and policies to determine qualifications. For the board of directors, you must typically be a Professional Member of the association and have served on Delegate Council for two years. Continuing education season will begin shortly, so now is a good time to get started on your Certified Residential Mortgage Specialist (CRMS) or Certified Mortgage Consultant (CMC) certification. There is a test prep class available and qualification information on NAMB.org as well. Join American Homeowners Alliance
and get a free one-year membership as a closing gift to your borrowers. It allows them representation in Washington, D.C., as well as e-bates and discounts on their online purchases. Finally, visit the Infosight Web page under education on NAMB.org for links to cyber security training and tools to make your company and borrowers information more secure while meeting your CFPB requirements. So keep originating loans, helping borrowers and choosing some of the above to further your career and profession. Helping people accomplish the American dream of homeownership is a noble and satisfying profession to be part of. Sincerely,
Alabama, who served as NAMB East Committee Chair for our visit to Hilton Head, S.C. last month. She not only works at her mortgage company, but she devoted hours upon hours to making sure all of the details of NAMB East were completed and that the event came off without a hitch. Now I have not pointed out these two people specifically, but am trying to make a point. Your association is made up of great people who give of their personal and professional time to seeing the growth and continued success of NAMB. Every board member is like this. We give not only of ourselves, but of our time and effort to make your association the best for you and your co-workers. It is a passion and something we do for the good of our industry. We don’t charge thousands of dollars in member-
ship fees or thousands of dollars to go to our conferences. We feel that, as a member, you should get some perks. And that is why we don’t charge you a great deal of money to attend our events and not a lot of money to belong to the association. We are a very efficient group of people dedicated to working for you to achieve an end result of having you become a member. Lord knows that we are not going to become a rich association charging you less than $10 per month to become a member. So my question to you is this: Why haven’t you and your friends joined?
wanted to get Realtor business, so of course I was going to take advantage of the invite. While there, I met a mortgage professional who I highly respected. I got into a conversation with him about all of the RESPA changes and our Florida laws, voicing my opinion and thoughts. He intently listened and said that he agreed with me then asked me one question: “Are you a member Kimber?” I said no, I really do not have the time as I am a one-man shop so it is hard. His next response was, “Kimber, you have aired your concerns for over 20 minutes. I understand that your business can take up your time, but if you do not take the time to invest in your profession by at the very least
being a member and having a vested interest, then do not complain if the day comes and you cannot operate your business.” I looked at him, and without hesitation, said, “Point me to the membership person.” I joined on the spot. Since that day, I have become increasingly involved with my local, state and national trade association to better our industry. One thing I did not expect when I joined was the friendship and business relationships with fellow mortgage professionals that have grown all over this country. I also receive discounted education, government affair updates, additional members-only benefits, and I am counted in the mortgage profession by being a member.
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 I understand that not everyone can get involved and take on the level of service that I or someone else can, but everyone can afford $120 a year to invest into your business by joining NAMB and supporting your livelihood
for just $10 a month that supports you in your business. As we all know, there is strength in numbers, and all of us together can make an impact for the betterment of our industry as a whole. We need you as
Are Leaders Born or Created? By David Luna, CRMS
The book by J.P. Kotter on What Leaders Really Do is a collection of his acclaimed Harvard Business Review articles. His thoughts could be summed up as “Leaders lead people, managers manage tasks, work and processes.” In the mortgage industry, there
are many leaders and this is not subject to age. I know a person with several degrees, with all of the correct mortgage skills and has been in this industry for 30 years. Yet, this person is not a great leader. I also know several young people who have the ability to have great people attracted to them. Therefore, I do not believe age is relevant to whether someone is a great leader. A leader is someone who cares about their people and will do what is right no matter what. In another Inc. Magazine article,4 it found that you may be a leader if: 1. You have an open mind and seek out other people’s opinions. 2. You find yourself giving advice and counsel. 3. People count on you. 4. You’re a good listener and people confide in you. 5. Others follow your example. 6. You insist on excellence. 7. You have a positive attitude. 8. You treat people with respect. 9. You genuinely care about others. 10.You are confident and passionate. Can leadership be learned? I believe that it may be started at an early age by parents, teachers, coaches, etc. Surrounded by those who truly care for these early leaders, leaders are made. Can we become leaders? I believe that it depends on what your skillset is. Are you happiest and more comfortable in getting things to work well or is there a better, faster way. Can you do things in a manner that can excite other people or are you happy to do things the same way they have always been done? I remember a story about a young husband coming home to find his wife cooking a roast. When he inquired why she had cut the ends of the roast she answered, “That’s the way my mom did it.” Not completely satisfied with the answer, he asked his mother-in-law why she cut the
ends off of her roasts. She answered, “That’s the way my mom did it!” Finally, he went to grandmother-inlaw and asked, “Why do you cut the ends off of the roasts?” Finally, he received a different answer, she replied, “Because my pan is too short.” Are we doing things “that way” because things have always been done that way (manager) or is there a better way? Leaders will find new, innovative and better ways of looking at this wonderful business we call the mortgage profession. We had the NMLS in our office a few weeks ago. Hopefully, as our company’s leader, I am doing things right. We were told that we are highly ranked as a school, and if the trend continues and we accomplish some of our goals, we could be ranked even higher. Is this true of me as a leader or of the fantastic people in my company? I think it’s both the vision and highly motivated, intelligent people I get to associate with on a daily basis who are driving us forward as we break all of our previous records (our measure of performance). We are growing at a rate of 25-30 percent per year and have done so for the last five consecutive years. Hopefully you can be that kid that others will want to follow. Hopefully you will be that company others will want to work with. Hopefully your time as a leader has begun or you are now ready for the next chapter in your career. Whatever the motivation, leaders can be made. Leadership can be learned and the benefits will be shared with your entire organization, big or small. David Luna, CRMS, president of Mortgage Educators and Compliance, an NMLS-approved education provider, is a member of the board of directors of NAMB—The Association of Mortgage Professionals. He can be reached by phone at (801) 676-2520 or e-mail David@MortgageEducators.com.
Footnotes 1—The Leadership Style that Builds High-Growth Companies By Jill Krasny, Dec. 24, 2014. 2—Goleman, Daniel, “Leadership that Gets Results,” Harvard Business Review, March-April 2000, p. 82-83. 3—LinkedIn is a trademark of LinkedIn Corporation, Mountain View, Calif., USA. 4—10 Signs You Really Are a Leader (and Might Not Know It) By Lolly Daskal, published April 4, 2016.
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l Leadership is working on the system Management is working in the system (M. AlZoubi). l A leader gets things done by holding a vision, modeling behaviors and inspiring action. A manager gets things done via planning and delegation (S. Slater). l Management is about ensuring a process is delivered efficiently and leadership is about influencing change (S. Chapple). l Leadership is vision and management is goals (D. Sandusky). l Leadership focuses more on the people side of the business, while management is more about systems and processes (D. Slayton). l A leader needs to know whether his vision is achievable, and works with the managers to ensure they can reach it (R.G. Smith). l People have to work for managers whereas people want to work with leaders (R. Jindani).
Kimber White is a partner at RE Financial Services in Oakland Park, Fla.
He currently serves on the Executive Committee of the Florida Association Mortgage Professionals (FAMP) as Treasurer and serves nationally on the NAMB board of directors as Membership Committee chair for NAMB.
NationalMortgageProfessional.com
“Management is doing things right. Leadership is doing the right things.”— Peter Drucker (1909-2005) I believe that leaders are made, not born. They are those people around us who, as kids, we followed and they may not have known that they were born leaders. Why would we as kids have followed someone and not known why? Why would we have wanted to be on a team if that leader was on the same team too? Why did we think our chances were better at winning because of our captain, teammate or leader? Do you believe that there are leaders who don’t even know they are leaders? I say we follow someone as our leader for various reasons. A definition of “Leadership” could be the ability to influence people to move toward a common goal. How to motivate people has been the objective for many movies, books and college courses. In an Inc. 500 CEO survey based on data from the Inc. 5000, a list of the fastest-growing private companies in the U.S.1 They found (based on their survey) that leaders characterized their leadership style as Visionary (66 percent), Democratic (18 percent), Servant (12 percent), Autocratic (three percent) and Hands Off (one percent). However, when asked: “How do you think your employees view you?” Their answers were different. Again, Visionary scored very high at 53 percent, but the rest were very different. Tough (but fair) came in at 22 percent, Motivational at 16 percent, Benevolent at seven percent and Sympathetic at two percent. Leadership can be broken down into characteristics such as: Integrity, self-confidence, decision-making ability, knowledge, drive, diplomacy, popularity, cooperation skills and more. There is, however, a difference between leadership and management. The business leader will create a vision, while the manager works
towards that vision within the company structure. The leader is passionate the manager’s rational. The leader is creative, while the manager is analytical. The leader will be imaginative the manager will be stabilizing. There are many different types of leaders if we look at Daniel Goleman’s work2, he states that there are: Visionary, Coaching, Affiliative, Democratic, Pace-Setting and Commanding Leaders. The group “Linked 2 Leadership” is a group on LinkedIn.3 When asked the question of Management vs. Leadership, the group responded:
a member. Please go to NAMB.org and join today. Together our membership matters.
NAMB PERSPECTIVE
getting toknow Valerie Saunders Director of NAMB B Y
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alerie Saunders is one of the most prominent figures in today’s mortgage profession. She is the president of Jacksonville, Fla.-based Title ClearingHouse, is the immediate past president of the Florida Association of Mortgage Professionals (FAMP) and a director with NAMB—The Association of Mortgage Professionals. National Mortgage Professional Magazine spoke with Saunders regarding her career in the mortgage industry and her work with the state and national trade groups.
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How did you first get into the mortgage profession? Was this your original career choice? No, it was definitely not my original career choice! I was working on my master’s degree in historical administration, and I looked for a temp job—and I happened to get one in the mortgage industry. When I got my master’s degree, the jobs fell out of the arts field, so I stayed with mortgages.
P H I L
H A L L
When did you receive your master’s? In 1991, from Eastern Illinois University.
of time getting the state and national associations back together. Since 2011, I have been a NAMB director.
How did you first become involved with the Florida Association of Mortgage Professionals (FAMP)? I moved to Florida from Illinois to work at a title company. I started attending FAMP Chapter Meetings in order to start networking and gather new business. By 2007, I was part of the Executive Committee of the state association. From there, I went on to become treasurer and was later president-elect. Kathy Love, our incoming president at the time, passed away. Rick Workman, then past president, took her place, but was then elected to the Florida House of Representatives. He resigned and I went into the president’s role.
Are you still involved with FAMP? I am president of the FAMP Education Foundation, which primarily handles the oversight of instructional courses and educational seminars provided via NMLS-approved course instructors. We also do consumer education—we used to do a lot more, and we are now getting back into it.
How did you first get involved with NAMB? Before I became FAMP president, Florida had broken away from the national association. I spent a lot
What are some of your responsibilities with NAMB? Currently, I am co-chair of the Government Affairs Committee. We have been focusing on HR 3393, The Mortgage Fairness Act, and trying to get cosponsors in the House and on the Senate companion bill. We are working to educate the membership on the importance of HR 3393 and its impact on mortgage brokers. We also put together the 2016
Legislative & Regulatory Conference recently held in D.C., with three full days of education, information and lobbying for our members. And we started a monthly Webinar series last July that focuses on different topics of use to the industry: TRID, 203k, loan officer compensations, MSRs, etc. In May, the Webinar will focus on Fannie Mae’s HomeReady and Home Possible programs. We have also set up a legislative advocacy page that includes immediate calls to action on bills that are either harmful or beneficial to the mortgage industry. What do you see as the current state of the mortgage profession? I believe that this is the year of the mortgage broker. The industry is poised to serve our country’s consumers in a better way. The federal government and the state governments see the importance of small business within a community serving consumers directly.
NAMB PERSPECTIVE Many people in the industry have been concerned that young people are not gravitating to the mortgage profession. What can be done to attract more young people to careers in the mortgage profession? Unfortunately, the economic downturn and its effects on the mortgage industry resulted in young people watching their parents struggle. Many of them said, “I’m not going to do that … I don’t want that to happen to me.” But as the industry turns a corner, more people are coming out of college and are seeing that we’ve come back. We have to let the Millennials know that the mortgage profession is a safe and secure industry to go into. Unlike many industries, we have direct contact with consumers and our professionals get to see the fruits of their labors.
What are some of your nearterm goals? I am still working to be the best I could possibly be on a national level. Whatever task I’m given, I will give 150 percent. I am also eager to expand my business. I want to open another branch and take on a couple of more loan officers. You are more than a little busy
And did you ever find a professional outlet for your original career goals? I have a BA in history, and when I was first out of college, I had a job at the National Archives in St. Louis. After my master’s, I worked at a convent and did a museum-quality exhibition within
the Mother House. But since I moved to Florida, I’ve not been able to utilize that aspect of my education. But I still love history and love going to museums. 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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What is the biggest challenge facing your business today? Our biggest challenge is trying to hire new loan officers. We want to expand our footprint and are putting a focus on hiring younger loan officers that we can appropriately train. But finding the right people that would well with us has been a great challenge.
of time cultivating youth athletics.
NationalMortgageProfessional.com
What is the current state of the housing market like in Florida? Florida is definitely on the rebound. The South Florida area was the first in the state to be hit the hardest, but now it is a hot market. Home values are on the rise, and according to a Freddie Mac study, some of the hottest areas in the country are in South Florida. The Northern region of Florida is recovering as well.
with your work. How do you spend your leisure time? I have two kids—one is a junior in college and the other is a senior in high school. Our family loves Disney World and we are going on a Disney cruise this summer. I am also a softball coach with the local middle school and president of the local softball association. I spend a lot
new to market continued from page 18
Step Inside Ginnie Mae New Market Reality By Ted W. Tozer The housing finance industry is continuing to evolve, and during this evolution, the role of Ginnie Mae is more critical than ever. In recent months, Ginnie Mae has become the first source of new mortgage-backed securities (MBS) with one-third of the overall market share, and we are rapidly closing in on $1.7 trillion in outstanding Ginnie Mae securities. This is important since we are committed to bringing our program to as many people as possible.
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New Issuers and new borrowers coming into the Ginnie Mae program are opening up the credit access box. Ginnie Mae’s Issuer composition is almost completely opposite from six years ago.
Now, only one Issuer in Ginnie Mae’s top five is a traditional depository institution. Independent mortgage bankers are critical to sustaining consumer access to government-insured mortgages and insuring credit access for all. Given this new market reality, Ginnie Mae is committed to ensuring the success of our Issuers as well as bringing our program to as many people as possible. 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.
made during the process, allowing lenders access to all layers of analysis necessary to resolve quality control, investor, or agency inquiries. “Our business process outsourcing teams have processed and underwritten over one million loans during the last 10 years,” said Rachael Harris, director of Product Development–Income Analyzer, Indecomm Global Services. “We know how disruptive complex tax returns can be to the flow of a loan. We designed Income Analyzer to improve the overall quality management strategy by providing expertise early in the process.” Income Analyzer is easily integrated into any workflow and can be customized to meet an array of underwriting standards. The proprietary OCR technology and rules based engine is capable of handling complex files with multiple subsets of income documents. Stream-by-steam functionality allows for qualifying on any combination of income types and produces a cash flow analysis in any form, including Fannie Mae, Freddie Mac and proprietary formats.
benefits of purchasing an owner’s title insurance policy. The HOP Print Shop allows ALTA members to easily customize more than 60 HOP resources, download modified digital files for free or order discounted print products for use in their local market. “As the busy spring homebuying season begins, it’s important for ALTA members to clearly and simply communicate the benefits of title insurance to consumers,” said Michelle Korsmo, ALTA’s chief executive officer. “We are excited to offer this new print service to save our members time and money, while increasing their consumer education efforts. For many consumers, buying a home is the single largest investment they will make in their lifetime. Every homebuyer deserves easy-tounderstand information on how to help protect their property rights.”
Your turn
National Mortgage Professional Magazine invites you to submit any information promoting new “niche” loan programs, new products or any ALTA Launches Onother announcement related to the introduction of a new program, to the Demand Print Shop The American Land Title attention of: Association (ALTA) has launched a new onNew to Market column demand print service as Phone #: (516) 409-5555 part of its Homebuyer E-mail: Outreach Program newsroom@nmpmediacorp.com (HOP). ALTA’s Homebuyer Outreach Program provides mem- Note: Submissions sent via e-mail are prebers access to exclusive resources to ferred. The deadline for submissions is the help educate homebuyers about the 1st of the month prior to the target issue.
NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals. Dear Mortgage Professional, Did you know that you can connect with NAMB+ through social media? Find us on Facebook, Twitter, Instagram, Pinterest and Google+. We love to post and share information about our Endorsed Providers and the amazing products and services that they offer. We also share information on special money-saving discounts that our Endorsed Providers make available exclusively through NAMB+. If you’re not connected with NAMB+ you are definitely missing out! NAMB+ wants to connect with you on social media as well. We invite you to share your experiences working with our Endorsed Providers, and don’t forget to tag us and your favorite NAMB+ Endorsed Provider when you post! Finally, if you are a company that would like to explore becoming a NAMB+
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Endorsed Provider, please feel free to connect with us as well. Either myself or another member of our Board of Directors will get back with you. We are constantly looking for exceptional companies to help connect with NAMB Members throughout the country. 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.
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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%.
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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.
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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.
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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.
The NMP Daily Email Newsletter is your source for breaking news, insights and tips. Get free access to full articles including the hottest industry headlines, featured articles and other mission critical mortgage industry stories delivered to your inbox each day. The NMP Mortgage News Ticker is a daily news feed that gives you a snapshot of the hottest mortgage news stories from around the web. Stay informed of the most recent headlines and blogs, all compiled into one convenient daily email. Your State SpeciďŹ c Digital Edition Want to stay informed on a more local level? The contents of our state e-editions include all of the content from our national publication plus state-specific mortgage association information, including the President's Message, which highlights local issues, such as regulatory and legislative matters, along with the state calendar of events. Mortgage News Network (MNN) features regularly scheduled and special event video programming with industry experts sharing insights that impact your business today and in the future. MNN provides market forecasts, proven sales and marketing strategies, interviews with industry leaders and more.
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Free print subscription ($59 value). Go to Sub.NMPMag.com/nmp0511
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What Frustrated Loan Officers and Supermarkets Have in Common BY BRIAN SACKS
y 19-year-old son is a “foodie” and loves a great supermarket. He spends a great deal of time fascinated with Whole Foods and is always looking for healthy food to eat. Now stay with me here because I promise this will all tie into our problem as loan officers. I am, however, not fascinated with food or supermarkets. In fact, I will do anything I can to avoid even going into one. To me, a head of lettuce is the same regardless of where it comes from … it all tastes the same and for me it comes down to price. My son would argue that they are not the same at all. In fact, he will spend more for organic veggies that are grown on a
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mountaintop in the Andes. To me, it’s still just a head of lettuce period. l Do you have these frustrations as a loan officer? Before I tie all of this together for you, I want to get some of the frustrations we all share off my chest and I will share with you how I have been able to correct this situation and help hundreds of other originators do the same. Which of the following options below frustrate you? l Being shopped by the majority of buyers that you meet with or having people just call you to make sure the rates they were quoted are ok with no intention of using you. l Having to work nights and weekends 24/7/265 so that you
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l
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don’t miss an opportunity because it’s “so competitive” out there. Begging real estate agents for business and having to go out with them for coffee or lunch. Heck, it’s hard to even get them to agree and you don’t want to go anyway. Having your income and lifestyle dependent on others to give you business. So you always live on egg shells hoping things go well. Always feeling like you must be chasing new business. You are forced to spend money you cannot afford to spend on programs that simply don’t work. Doing a great job for a real estate agent and a client and never getting a referral or another deal.
So … what does this have to do with supermarkets and loan officers? On the surface, maybe nothing. But when you stop and think about it, the dilemma is exactly the same. After all … isn’t a head of lettuce the same everywhere? An apple and a tomato are the same. Toilet paper and cans of tuna are all the same right? That’s how I feel and that’s why you constantly see ads in the paper for every supermarket with their sales and super low prices. But what if you are Kosher? Only eat gluten-free or have some other need? The key is specializing in a niche. My son loves Whole Foods because he has many healthy alternatives at one place. They charge more than the other supermarkets in town and have raving fans. In Baltimore, there is one huge Kosher supermarket. If you keep Kosher, than this is your one-stop for all of your food needs. Yes … they are more expensive than the other local markets that may have a Kosher section. Now let’s apply this to our mortgage industry I realize this may sound counter-intuitive, but you should pick a niche that you become
the obvious “Go-To-Expert: in. When you are the expert in a niche and are able to solve a specific challenge a buyer has you avoid the issues above that have frustrated us all. l Borrowers will meet you during your hours since you are “The Expert” l They will not shop you since there a few alternatives. l Real estate agents will seek you out since you have a program they need that their inhouse or current lender cannot help them with. l These buyers become raving fans when you solve their issues. Best of all, you can promote yourself as the expert without spending a single penny. But what niche? Of course there are many niches like reverse mortgages, construction perms, foreign alien loans, first-time homebuyer programs, condo loans that were not approved, VA loans, etc. To me, these all have a lot of competition. Boomerang buyers But I bet you might know that there are 7.3 million buyers who were hurt during the meltdown who are now eligible to purchase a home. They are in every city and town, both big and small. The best thing about this niche is that fewer than one in 10 loan officers in the U.S. is going after them. To me, that is a perfect recipe for success. Go after a niche that few others are going after and become the Go-ToExpert for these buyers. These buyers simply want to get back on their feet financially. They will truly appreciate and value anyone they think can truly help them. More importantly, there are ways to promote yourself as the obvious Go-To-Expert for this niche with no monetary investment. There are now new programs coming out that are specifically designed to assist these buyers. Go ahead and decide to become “The Expert for Boomerang Buyers” in your town and your closings and referrals will soar!
Brian Sacks is a nationally-renowned mortgage expert who has career closing of more than 5,924 transactions for in excess of $1 billion. He may be reached by phone at (443) 324-8424 or e-mail LoanOfficerTips@gmail.com.
Get Your Best Results This Summer Summer is here, and there are particular items to take into consideration when planning your marketing strategy. Before sending out any marketing materials, spend some time thinking about what your prospects are doing. In the summer months, it’s more important than ever to take your prospect’s lifestyle into consideration before putting together your campaign. Consumers with families are more likely to be on vacation during the summer months, your marketing efforts can be an intricate part of your growth over these months. Here’s a quick look at some effective planning techniques that can produce higher return-on-investment throughout the summer season. To effectively plan your marketing at any time, it’s important to think about your prospects and what they will be doing when they receive your marketing collateral. Whether you market via direct mail, telemarketing or online marketing like SEO, Google AdWords or Internet leads, it’s important to know what the person might be doing when initial contact is made. Are they on vacation, at work or at home? Each of these scenarios will play out differently through the sales process. Make sure you are spending time thinking through your own demographic research, marketing campaign and sales process. How do they fit together? Can you use a different sales approach to make the conversation easier with a smoother transition to closing? Most importantly, what’s going to bring you the highest return-on-investment (ROI) during the summer? People on vacation don’t always leave their homes. For this reason, direct mail marketing is a consistent provider of qualified interested leads all summer long. Response rates have been on the rise all year, and this summer is shaping up to produce higher response rates than the previous three years! TagQuest client spotlight Ian O’Connor (Ind. NMLS#: 1020018) of Capital Home Loans Inc. (Corp. NMLS#: 1388956) in Cedar Knolls, N.J. (973) 607-3777, ext. 102/IOConnor@CapHomeLoans.net 30
Product: Data (7,500 records per quarter)
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Results: Sixteen closed loans in the first quarter and 11 applications in processing expected to close Highlights of the campaign that work well for you … “The accuracy of the data and the near exclusive contact with the borrower, as they are not looking into a mortgage product at that moment, allows us to get much softer responses from a borrower than with traditional inquiries. When we reach someone and identify that they need help with payment reduction or rate reduction they usually move quickly through the process. “While the response rate is obviously lower than traditional lead marketing, our entire telemarketing operation has evolved to a high volume of calls, with a triage system in place for borrowers. Rather than chasing a single application until its eventual disinterested, with this data, if we do not get an immediate response, i.e. credit pull/docs out, the data is recycled and we approach them a few weeks later. TagQuest has facilitated a much lower cost of acquisition with excellent results to date.” Highlights of the campaign that you think would appeal to other mortgage professionals … l TagQuest is very responsive to testing different markets and approaches. l A sales team that is eager to sell products that are performing well. l Any breakdown in data accuracy analyzed by TagQuest. Data integrity is very important to them. l Success out of the gate with a solid telemarketing team.
nmp news flash continued from page 16
million last year from 3.23 million in 2014–the highest level since 2007’s 3.93 million mark. Investment sales in 2015 remained unchanged from a year earlier at 19 percent, and owner-occupied purchases increased to 65 percent from 60 percent in 2014. But vacation homes took an opposite turn: sales for this sector dropped to an estimated 920,000 in 2015, an 18.5 percent tumble from their 2014 peak level of 1.13 million. On the bright side, 2015 was the second highest level for vacation home sales since the 1.07 million mark in 2006. Vacation homes made up 16 percent of all housing sales transactions last year, down five percent from a year earlier. The two sectors shared one piece of common ground with increased median sales prices: The median vacation home price was $192,000, up 28 percent from $150,000 in 2014, while the median investment-home sales price was $143,500, up 15.3 percent from $124,500 a year ago. Vacation home sales accounted for 16 percent of all transactions in 2015– down from 2014 (21 percent), but still the second highest share since the survey was first conducted in 2003. The portion of investment sales remained unchanged from a year ago at 19 percent, and owner-occupied purchases increased to 65 percent (60 percent in 2014). “Baby boomers at or near retirement continue to propel the demand for second homes, although headwinds softened the overall volume of vacation sales last year,” said NAR Chief Economist Lawrence Yun. “The expanding pool of buyers amidst a dwindling number of bargain-priced properties led to tighter supply and fewer sales and caused the price of vacation homes to rise. Furthermore, the turbulence that hit the financial markets the second half of the year likely seized some would-be buyers’ available cash.”
HUD Reaches Agreement in California Fair Housing Act Case
business as Income Property Specialists) and property owners Gary and Mary Drieger discriminated against prospective renters by refusing to accept Mexican forms of identification, while encouraging a Canadian passport holder to apply for an apartment. The Fair Housing Act prohibits discrimination in rental, sales or home lending transactions based on a person’s national origin. This includes discrimination based on a person’s ancestry or country of birth outside the United States. “Where a person is from should not influence the housing options that are available to them,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “The Fair Housing Act requires property owners to treat everyone equally and HUD will continue to take action when they fail to meet that obligation.” The case came to HUD’s attention when Project Sentinel, a fair housing organization based in Santa Clara, filed a complaint after performing fair housing testing that allegedly showed that the owners, through the management company, discriminated on the basis of national origin by refusing to rent, and imposing different terms and conditions regarding government-issued forms of identification. According to Project Sentinel’s complaint, the respondents allegedly informed testers who offered a Mexican passport and a Mexican consular identification that such identification would not be accepted, but encouraged testers using a Canadian passport to apply. Under the Conciliation Agreement, the owners and management company agreed to pay Project Sentinel a monetary settlement; obtain fair housing training on how not to discriminate; and implement a HUD-approved nondiscrimination policy. The owners and manager also agreed to implement a HUD-approved procedure for accepting government-issued forms of identification and post a HUD-approved fair housing poster in the public area of its rental property.
Owners.com Survey Finds Rise in Homebuyer Confidence
TagQuest Inc. is a full-service marketing firm specializing in marketing for the mortgage industry. Call (888) 717-8980 or visit www.tagquest.com.
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The U.S. Department of Housing & Urban Development (HUD) has announced an agreement with a Cupertino, Calif.-based property management company, its agents and the owners of a Santa Clara apartment complex to resolve allegations they discriminated against applicants based upon their national origin. HUD alleged that the Salwasser Group Inc. (doing
Owners.com recently surveyed 1,000 potential homebuyers ahead of the spring real estate season, and the results of the survey, the Owners.com Consumer Real Estate Index, found that
The national rental housing market is lacking 7.2 million affordable and available rental units for the 10.4 million Americans with extremely low incomes, according to a new study released by the National Low Income Housing Coalition (NLIHC). The data published in NLIHC’s report “The Gap: The Affordable Housing Gap Analysis 2016” shows that 75 percent of extremely low income (ELI) renter house-
NLIHC. “What is frustrating is the lack of timely action to address the issue. Millions of people in America are living in unaffordable rental homes. They are forced to cut their spending on food, transportation and health to pay rent.”
Freddie Mac: Housing is Mostly Steady
The U.S. housing market remains on
solid footing in most markets, according to data released by Freddie Mac in its latest Multi-Indicator Market Index (MiMi) report. The national MiMi value, as of January, stands at 82.7, a 0.18 percent monthly uptick as well as a 1.46 percent quarterly increase and a 7.57 percent year-over-year growth. Thirty-four states and the District of Columbia registered MiMi values within range of their benchmark averages, with the District of Columbia (101.8), North Dakota (96), Hawaii (95.6), Montana (95.1) and Utah (94.5) ranking in the top five. Fifty-six of the top 100 metro areas also had MiMi values within range, continued on page 66
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Report: Low-Income Renters Find Minimal Housing Choices
holds spend more than half of their income for housing, leaving them without inadequate funds for basic necessities and unexpected emergencies. NLIHC estimates that ELI renter households account for 24 percent of all U.S. renter households. Furthermore, NLIHC found 20 states have fewer than the national average of 31 affordable and available units per every 100 ELI households, with Nevada offering the least opportunities with 17 affordable and available rental units every 100 ELI households. No U.S. metropolitan area has more than 46 affordable and available units per 100 ELI households. “The Gap reveals an alarming reality about housing for extremely low income households,” said Andrew Aurand, vice president of research at
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consumers are confident in the economy and their own understanding of the homebuying process, suggesting they are becoming more self-reliant with the homebuying experience. The Owners.com survey found 80 percent of homebuyers are confident that the 2016 homebuying environment will be as good as or better than it was five years ago, and 92 percent say that mortgage interest rates are “somewhat to very important” to their decision on when to buy. Sixty-nine percent of respondents gave themselves an “A” or “B” grade when it comes to understanding the homebuying process, suggesting confidence in their ability to self-navigate the real estate market. “Consumers are heading into the spring home buying season with a positive outlook, according to our findings,” said Steve Udelson, president of Owners.com. “Homebuyers also indicate a willingness to go online and handle more elements of the real estate process themselves in order to save time and money—a trend we expect to continue this year and beyond.” According to the survey responses consumers are now more inclined than ever to use technology to facilitate key parts of the real estate transaction. Seventy-three percent of survey respondents would use online sites to search for properties, more than half (53 percent) are inclined to book home tours online, 43 percent would consider online financing products and 27 percent would make a purchase offer online. When thinking of luxury must-haves in their new home, 29 percent of the respondents dream of a fully-equipped smart kitchen, with 19 percent wanting a spa bathroom. Respondents cited upgrading to a better home (33 percent), wanting to invest in real estate (25 percent) or relocating to a new area (24 percent) as the reason for their interest in a home purchase this year. The Owners.com Consumer Real Estate Index was conducted online among a random sample of 1,000 consumers who are likely homebuyers in 2016.
Tales From
credit: alphaspirit
the Closing Table BY ANDREW LIPUT he 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!
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Top industry news … l A belated congratulations is in order for John Hollenbeck, EVP at First American Title after being named new president of the American Land Title Association in January. John is a long-time industry fixture and a strong advocate for title underwriters and agents. Good luck John! l The industry was rocked by the news that a jury awarded Mount Olympus Mortgage Company more than $25 million in a lawsuit alleging “corporate espionage” by former employee Benjamin Anderson and his new employer, Guaranteed Rate. Anderson and another former Mount Olympus originator who now works for Guaranteed Rate, Brian Decker, were accused of stealing loan files, borrower information and other proprietary data from the Irvine, Calif.-based lender. According to the lawsuit, “The purpose of the scheme was to divert hundreds of Mount Olympus loan customers to Guaranteed. The individual defendants misappropriated Mount Olympus confidential and proprietary information and directed its customers to Guaranteed.” In a transient industry, where mortgage loan originators and their lender employers often have differing opinions on “who owns the client,” this is a serious wake-up call for big-time salespersons who are seeking to jump ship and take business along with them l In what may be some good news for mortgage lenders coming out of the Consumer Financial Protection Bureau (CFPB), mortgage complaints no longer lead the list of complaints at the Agency, having been supplanted by complaints about debt collectors. Debts not owed accounted for 38 percent of all debt complaints. Other issues
raised were the frequency of calls—weekly, daily and even at places of employment, and lawsuits filed for debts that were not actually owed or where the statute of limitations had long passed. 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 … ++A former attorney with the Federal Deposit Insurance Corporation (FDIC) was sentenced to 12 months and one day in prison, followed by two years of supervised release, for defrauding Wells Fargo Bank in connection with the sham short sale of her home to her live-in boyfriend. She was also ordered to pay $288,497 in restitution and to forfeit the proceeds of her offense. The female barrister, who pleaded guilty to committing bank fraud, was a senior attorney at the FDIC until September 2014. l A Georgia lawyer and his title agent accomplice were indicted on charges of with conspiracy, wire fraud and related crimes in connection with the alleged theft of $20 million-plus from attorney escrow accounts and operating accounts of a law firm and title agency to pay personal expenses. l Five Virginia mortgage employees, one a VP with Sun Trust Mortgage were convicted by a federal jury on charges of conspiracy to commit wire fraud affecting a financial institution and various counts of wire fraud affecting a financial institution. According to court records and evidence at trial, the ringleader, then employed at Bank of America, was hired by SunTrust Mortgage tasked with opening an office in Annandale, Va. After hiring his wife, another former loan officer from Bank of America, and her brothers, to work as loan officers, the group falsified loan applications for borrowers and purchased fake tax documents to support the false loan applications. l A Florida title company is under fire, and has been named a defendant in a lawsuit for sending the wrong wiring instruction to a borrower when then wired the purchase proceeds not to the seller, but to a group of criminals.
The instructions were sent to the title company by hackers who were behind the theft scheme. The title company is now being held to task over its data security measures. l A Brooklyn, N.Y. attorney who pleaded guilty to two felony conspiracy charges for her role in a massive mortgage fraud scheme has received a five-year suspension from practice. The lawyer pled guilty in 2011 to one count of conspiracy to commit wire fraud and one count of conspiracy to commit wire and bank fraud as one of 12 coconspirators in a scheme that fraudulently obtained more than $9 million worth of residential properties by using fictitious identities and documents. It is unclear why the state bar took five years to finally take disciplinary action against her. TRID surveys revealing There have been interesting polls released lately regarding how TRID has impacted lenders, settlement agents and consumers. A Secure Insight survey conducted of 1,342 mortgage industry executives nationwide regarding the impact of the new Closing Disclosure (CD) on their lending business found that the preparation and rollout went well, although over nearly two-thirds of respondents experienced “significant operational cost increases” impacting budgets, staffing needs and consumer rates and fees. More than 80 percent felt the new rules have had a “positive impact on the overall transparency and efficiency of the mortgage process.” A similar SSI poll of 9,560 attorneys, title agents, escrow officer and notaries nationwide found that most agents rated the impact of the new CD on business operations as “Negative” or Very Negative,” fueled mainly by increased operational costs. As to the new form’s impact on consumers, from the agents’ point of view, it has not been as positive as perhaps the CFPB had hoped. Nearly 60 percent of those polled felt that the new disclosure has not helped with efficiency and transparency, and that the impact has generally been “Negative.” Only nine percent saw the new form as a positive for the consumer experi-
ence, while the balance felt the “jury is still out.” STRATMOR announced that data extracted from its MortgageSAT Borrower Satisfaction Program reveals overall consumer satisfaction with the mortgage process has increased since TRID was implemented—but the increase is satisfaction mainly has to do with the fact that lenders are more frequently contacting borrowers during the postapplication/pre-closing period, as a result of the CFPB’s new rule. STRATMOR’s data also shows that although the average number of days to close a mortgage loan increased for a few months after TRID was first implemented, the average number of days to close has since decreased— at least as of February—back to a normal “pre-TRID” level. Closing Corp. recently released the results of its own survey of consumers. The company interviewed 1,000 repeat homebuyers who had purchased a home both before and after the new TRID rule took effect on Oct. 3, 2015. Some of the findings were: 64 percent of respondents said it was easier getting a mortgage under the old rules, than under TRID; 57 percent said it took more time to close a loan under TRID than it did previously; 63 percent said that the new “Know Before You Owe” forms for loan estimates and closing disclosures were easier to understand than the old forms; 68 percent said the new forms did a better job preparing them for the closing costs they would have to pay and 65 percent of the respondents said that the costs and fees were “explained better” in their most recent experience. The biggest positive response seems to be related to shopping for services. According to Closing Corp., 78 percent of consumers surveyed said they were more informed about their third party service provider options (title companies, pest companies, engineering inspectors etc.)—74 percent of those consumers said they took advantage of it and 55 percent said they saved money as a result. On the lighter side … This month, we have a little something for everyone … What is a mortgage broker? A real estate agent without the sense of humor. What is the definition of a good real estate agent? Someone who has a mortgage loophole named after him. What’s the difference between a real estate attorney and an accountant? The accountant knows he is boring.
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.
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Hash It Out with Frank Garay & Brian Stevens
Alternative Lending: The New Normal
Hard-hitting, fact based look at some of the most important issues facing the home ďŹ nance industry today – with a bit of humor and irreverence thrown in. Airs every Thursday at 7 a.m. For more information on REMN Wholesale visit REMNWholesale.com
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Closing more, making more and still enjoying life!
Lenders Compliance Group provides practical advice regarding current mortgage compliance topics.
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n Montana Mortgage Professional Magazine n APRIL 2016
Tom Hutchens shares his insights on how to bring in more loans with the alternative lending market. Airs bi-weekly on Wednesday at 7 a.m. For more information on Angel Oak Mortgage Solutions visit angeloakms.com
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heard street ON THE
Our Heard on the Street column is a chronicle of events, changes and passages in the lives of the people and companies shaping the mortgage industry.
PRMG Announces Retail Division Expansion
APRIL 2016 n Montana Mortgage Professional Magazine n
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Paramount Residential Mortgage Group Inc. (PRMG) has announced the companywide expansion of its Retail Division with seven new additions to its team nationwide. David Haynes joins PRMG as retail regional manager for the Northern California Territory. David is a 19-year veteran of the mortgage industry, and brings an outstanding track record which includes originating $1 billionplus in production throughout his career. David is a graduate of the CMBA (California Mortgage Bankers Association) Futures Leaders program 2008 and sat on the CMBA Legislative Committee for the influential 20082009 legislative season, as well as 2012. Ed Roberts has been promoted to the role of retail regional manager for the Central States Territory. A 20-year veteran of the mortgage industry, Ed has experience in all areas and phases of the home loan process and mortgage finance arena. He began his career as a loan officer and surely knows the needs of the loan originator, thus providing mortgage sales success for new employees in the Central States. John Seib has been promoted to the position of retail regional manager of the Pacific Northwest Territory. John has been with PRMG for almost two years and has quickly advanced from a branch manager to a regional manager. During his time at PRMG, John opened a branch in Lake Oswego, Ore. and has been able to expand the market to Bend, Ore. and Bothell, Wash. as well. PRMG has also announced the promotion of Mike Mitchem to retail regional manager of Florida. Mike is a 14-year veteran of the mortgage industry along with an outstanding track record, which includes such positions as EVP for All-Florida Mortgage Centers, owner of Island Point Mortgage, area
sales manager at ResMac, regional sales manager at Hamilton Funding Group, and sales manager with PRMG. Mike is currently president of the Florida Association of Mortgage Professionals (FAMP) Central Chapter. In his new position as a PRMG regional manager, Mike will be tasked with daily responsibilities such as seeking talented branch managers and loan originators in Florida and recruiting them to the firm. PRMG has added 30-year mortgage industry vet Brian Mader as retail regional manager of the Northeast Territory. Brian started as a loan originator before being promoted to a branch manager. Over time, it was there that he eventually founded his own mortgage company for 13 successful years where he had the opportunity to work with large local lenders, local mortgage brokers and also large national banks, including JP Morgan Chase and Bank of America. In his new position as a PRMG regional manager of the Northeast Region, Mader will be focusing on providing continual guidance and support to existing branches residing within his region. PRMG has also announced the addition of Byron Enriquez as retail regional manager for the Southern California Territory. An 18-year veteran of the mortgage and finance industry, Byron’s diverse banking and finance expertise along with his tenacious commitment to driving sales, profit, and market share growth will make him an excellent ambassador for developing the Southern California Territory. PRMG has promoted Frank Castanos to the position of regional manager of Southern California and Las Vegas. Starting his PRMG career back in 2005, Frank has had the opportunity to work as branch manager at several retail locations, including Hesperia, Ontario and Victorville, Calif. most recently. He has been recognized as a Chairman’s
Cabinet member five times and has been awarded as a member of the President’s Cabinet numerous times. As a new regional manager, Frank will be responsible for increasing PRMG’s presence, communicate the PRMG culture with incoming recruits, all the while working with the branch managers in the fulfilling of collective goals in recruitment and production. Buddy White has been named retail regional manager for the Northwest and Northern Mountain states. In his new position, Buddy will be leveraging his talents toward recruiting and overseeing retail branches, including developing new areas within and outside his region, as well as providing support to branch managers and loan officers who are looking to making a long-term commitment with PRMG.
Secure Insight and Strategic Compliance Partners Join Forces
Secure Insight (SSI) and Strategic Compliance Partners (SCP) have reached agreement on a strategic business relationship. This partnership presents a great opportunity for each company to provide its clients with best-in-class complementary services. SSI will now be able to provide its clients with attorneydriven, fixed-price compliance programs, which mitigate risk and deliver solutions for today’s increasingly regulatory climate. Additionally, SCP will be able to offer its clients a proprietary data driven risk management solution when evaluating closing agents. “We considered this relationship very carefully and spent significant time evaluating the Secure Insight business platform, its products and services,”
said SCP Founder and CEO Ari Karen. “I am well aware that there are many companies claiming to provide reliable vendor management covering closing risk however SSI remains the leading innovator with the most comprehensive and accurate risk evaluation tool offered today. We are excited about this new strategic alliance.” “Ari is known as one of the most effective and knowledgeable legal, regulatory and compliance attorneys in the mortgage industry and his company has the same passion, dedication and commitment to managing industry compliance and risk management solutions as he does,” said Andrew Liput, Secure Insight president and CEO. “SCP has a unique platform, providing comprehensive compliance solutions supported by attorneys, experienced industry professionals and the Offit Kurman law firm. We are proud to recommend the services of SCP to our many lender clients and pleased to work together with SCP to bring affordable and reliable compliance and risk management solutions to the marketplace.”
Freedom Mortgage to Acquire Chase’s Rural Housing Business
Freedom Mortgage has announced that it has signed an agreement to acquire the correspondent origination assets of JPMorgan Chase’s Rural Housing business. Freedom Mortgage will operate the business unit under its own banner and will keep in place the existing team of dedicated professionals that has served the nation’s rural and low-tomoderate income lending needs for over 23 years. The transition will be fully completed on July 1, 2016. “We are extremely pleased to expand this important business unit within our growing array of services to our nation’s borrowers,” said Stanley C.
Middleman, Freedom Mortgage CEO. “Chase has a proven team of experts who thoroughly understand the unique requirements of rural housing customers. We look forward to further developing Freedom Mortgage’s presence in this essential market through our national network of correspondents. Over the next several months we will work very closely with Chase to ensure a smooth transition that keeps service levels high and funds flowing to the borrowers who need it.” This acquisition is the latest development in Freedom Mortgage’s growth strategy. The company, in business for 26 years, has grown to become one of the country’s largest wholesale and correspondent lenders, working with mortgage professionals all across America to deliver its trademark high quality financial services to the nation’s homeowners. “This decision aligns with our overall strategy to simplify our mortgage business. We will continue our strong partnership with the USDA to service our existing mortgage customers,” said Greg Beliles, head of Correspondent Lending at Chase.
experience. The acquisition of Titan broadens the company’s footprint in data-centric mortgage services. “We welcome Titan to the MetaSource family,” said Adam Osthed, president and CEO of MetaSource. “Not only does Titan bring a combination of solutions and mortgage industry expertise, but it was also apparent that our mission and values were in alignment.” “From its inception, Titan’s mission has focused on bringing much needed transparency and standardization to the mortgage process,” said Mary Kladde, CEO of Titan. “Titan was a natural fit for the MetaSource approach to improving mortgage operations, and we foresee
this relationship proving fruitful for mortgage industry participants through access to the combined suite of MetaSource and Titan solutions.”
First American Mortgage Solutions Announces the Acquisition of Forsythe Appraisals
a subsidiary of First American Financial Corporation, has announced its acquisition of Forsythe Appraisals LLC. Forsythe Appraisals offers comprehensive real estate valuation solutions with nationwide coverage. The acquisition of Forsythe Appraisals augments First American Mortgage Solutions’ existing valuation capabilities, providing lender customers with extensive valuation options aimed at quality, efficiency and compliance. First American Mortgage Solutions can now offer lenders an integrated valuation solution that provides access to staff appraisers nationwide through
First American Mortgage Solutions LLC,
continued on page 64
Parkside Lending Opens for Business in Missouri
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© 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.
n Montana Mortgage Professional Magazine n APRIL 2016
MetaSource Announces the Acquisition of Titan Lenders Corp.
GO-TO
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Parkside Lending LLC has announced that it is now lending in the state of Missouri. Parkside has been growing rapidly and with the addition of Missouri, its national expansion has now reached 48 states. “We are excited to bring Parkside’s ‘power of caring’ to our clients’ borrowers in Missouri,” said Matthew Ostrander, chairman and chief executive officer of Parkside Lending. “We will deliver the same great customer experience that our clients rely on in all the other regions of the country.” Ostrander co-founded Parkside Lending in 2004. He and his management team successfully navigated the mortgage deterioration of 2007-08, and have since grown the company to become a well-known national wholesale lending platform.
take the
lead !
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Take the Lead! BY LAURA BURKE, MBA, MS, MIS, CFE, EA
How is your IT IQ defining your networking ability? Does the “10 Second Rule” still stand for making a first impression in today’s IT business climate, with the institutionalization of social media, e-mail, Facebook and LinkedIn? Today, we are all affected in one manner or another with our IT IQ. How is your IT IQ defining your networking ability? I loved networking the antiquated way, live-in person, meeting new people, finding commonalities, sharing contacts, social networking … it’s all a blur; sort of like cursive handwriting taught in grade school and an essence of an era gone by. I too use social media and Internet communication 24/7, for business, work, friends, family and
social events. I probably couldn’t function properly without, but I miss the days of live interaction. Not knowing who you might meet, what twists and turns lay ahead. Are those days truly at an end? Can we learn to incorporate business networking in with our IT networking? It’s a challenge–we have fewer opportunities, less time and lower desire to physically attend functions. The Internet has swallowed us up. We live in the belly of the whale (the Internet) like Jonah or Geppetto in Pinocchio. We’re content not to venture out. We may have even adopted a fear of the unknown meeting when previously it was a way of life for most business professionals, especially those in sales. As a loan officer, I built my business on networking, both socially and professionally. Calling
on real estate agents, broker/owners and builders, attending functions, branding myself, developing my selfimage-getting out there. I knew I had 10 seconds to make the best first impression! I can say I have made many connections that are lifelong relationships, business colleagues and others I would call my friend. How do we do this with Internet networking? Are we making those lifelong connections? How are we making good, lasting first impressions during those first 10 seconds without voice inflections, without eye contact, without facial expression … we are black and white. I don’t feel the connection, nor the opportunity to be a resource to an Internet connection. I hate when people
endorse me or ask for my endorsement on LinkedIn that I have never met. Many do it for the noticeability it provides to them to be connected to someone that is perceived to be “well-connected.” I have sent messages in response to those asking, “I don’t recommend individuals I have never met!” Seriously, what’s the point, and more importantly, what’s the validity of the recommendations—kind of like “The Likes” on Facebook. The Internet is an easy way to stay connected, the keyword is to “stay.” It is not advantageous in making new connections that become relationships. Which leads me into the IT IQ where some of us might be better tech skills than social skills. So how does your IT IQ affect your networking opportunities?
What is proper etiquette for our new IT IQ? How to develop etiquette and social skills when using IT media: l Be respectful and take the time to think about what you are saying. Sending off a quick quip could be misinterpreted. l Ask for referrals just as you would do in-person. The person you are connected to may not know you are open to referrals and even welcome them. l A simple thank you is always appreciated, via live, written or communicated via IT … the thank you is always appreciated. l Ask what you can do for someone else …. don’t always be the taker, be the giver.
“Branding can be simplified using social media, we can choose a byline, a quick one sentence blurb about who we are, add another sentence about what we do …”
l Always have your contact information readily available in your IT message, your name, phone number and e-mail are always a must. l Lastly, use spell check and proper grammar. Do we use different skills, IT IQ when dealing with different individuals? How we talk to our best friend, spouse, sister and/or kids verses how we connect to a client, coworker, proposed client, past client our boss are all different. Take the time to think through each of these. Doesn’t our best friend deserve the same courtesy we afford our clients? I get the fact that in the midst of a mountain of texts , its personal and different with our family and friends, but I have sent texts that are so misspelled due to auto correct and fingers hitting the wrong keys that after sending them, I am embarrassed that the message came from my phone. So check all messages to determine they are saying what you think they are saying.
Don’t be shy to request referrals When networking for business using your IT IQ, use your database, ask for referrals and ask to link to others events, blogs and Web sites. It’s still all about networking, and now more opportunities come our way every day, it’s up to us to use our IT IQ and capitalize on the opportunities coming our way! In last month’s column, “Do You Know What Your SEL IQ is Saying About You?,” we looked at social and emotional intelligence, with responses from: Jessica Kofink, VP of Fortress Flooring, former BOA Sr. Banker “I agree that there are multiple types of intelligences with each person as stated in Burke’s column ‘Take the Lead: Do You Know What Your SEL IQ is Saying About You?” Working in the banking industry, it was my emotional IQ that I relied on. The ability to understand my clients based on their body language, voice fluctuations, and facial movements helped me to become
successful in my position with sales. While I have never given much thought as to how I obtained that skill, I would say that I have always had an interest in observing others. As a child with poor vision, I would often study my friends’ and families’ mannerisms in order to identify them because it was hard for me to see their face from a distance. As stated in the article, environmental factors are believed to be contributors, and in my case, I would agree. My Emotional IQ comes in handy often and this article definitely made that more apparent.” Genevieve Riley, Program Representative for not-for-profit Dancing Classrooms Greater Chicagoland, former Labor Administration “Great article! I can definitely relate to Internet technology IQ and Emotional Intelligence. My work often requires that I relate to people and clients both on the phone and via e-mail. When sending correspondence through e-mail/phone to sell my “product,” which in my case is a program, I will tailor to each particular person and what I think they will respond to. I research my clients online and then apply that knowledge to my correspondence, putting in personal touches that help me relate to them and in turn help to sell my product. I find it much easier and comfortable to correspond through email and have had excellent results.” Take the Lead! It’s your turn now … join in our media discussion, via online connections through Facebook, Twitter and email. We want your voice to be heard. We will share your stories, ideas and suggestions, giving you credit for your participation. Let’s grow together! Submit your responses to TakeTheLeadNMPM@gmail.com. Laura Burke, MBA, MS, MIS, CFE, EA is an author, and trainer with 20-plus years of experience in the mortgage arena. 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 or TakeTheLeadNMPM@gmail.com.
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How do we brand ourselves with our new IT IQ? Have you developed a brand … a picture and a few words that we use on our social media that depicts in a few seconds who we are? Branding can be simplified using social media, we can choose a byline, a quick one sentence blurb about who we are, add another sentence about what we do, have a specific picture we identify ourselves with and use it regularly through all social media. I like this, I don’t have to remember my 10 second signature line, I get it right every time on the Internet. But at what cost? Have I lost the personal part of me that makes me memorable? I’m not
talking about whether I look good, but I’m talking about a specific characteristic that might be identifying to me or you. Like red hair, blonde hair, a special cut, a signature scarf, a hat, a high pitched voice, green piercing eyes? We see or hear none of this via social media, how do we gain the competitive advantage then via the internet. We use our IT IQ and build strategic posts, making us memorable. We use a specific photo striking a chord of remembrance to our target audience. Start a blog to become multi-dimensional. Keep in mind; we control 100 percent of what others see about us. We should be able to control blunders and mishaps via IT IQ, some much easier than live mishaps. For example, working from home, kids are sick, car is in the shop, a little under the weather via our IT IQ no one ever needs to know. You can still appear to be in the office with professionalism exuding at all times. There is a shield that protects us from being stereotyped, whether its gender bias, generation stereotyping, or any other type of profiling, our IT IQ shields us from that. However, I do believe first impressions are every bit as critical with IT as live and in person. Keep it brief and memorable. The 10 second rule may be reinterpreted as the first internet impression one gives is judged and a decision is immediately made as to whether someone is buying your persona or not. You are not only selling and marketing your products and service, but yourself as well. I still say make your first 10 seconds count! Always make it your best first impression. You will always have only one chance at making that first impression.
NationalMortgageProfessional.com
Key components of IT IQ would be: l Adoptability: How quickly does your brain register new IT methods. Would it be first we had e-mail, then texting, Facebook, Instant messaging and Twitter? Are you using all of these methods and how quickly did you adopt these new technologies? l Adaptability: How quickly and easily did you adapt to the above technologies? l Attitude: How well do you market yourself with your IT IQ. I know too often I respond too quickly to an Internet message with short sentences or verbiage I quip out. Not meaning anything by it, just taking for granted that the person reading it also has a similar mindset and instantly recognizes the fact that I’m busy and don’t intend to be short, curt or unconcerned. In fact, I’m not meaning to be pompous or ungracious, but they don’t know it. They are in their own world of incoming texts, messages and e-mails. They have quickly read mine and are taken aback. How do I fix this 10 second blunder? Remember the old in-person method would take 10 more contacts to correct a poor first impression. I would venture to say it may take as many, maybe a few less depending on how curt you came across and how well you know the other person. Was it your friend, coworker, boss or new client? It does make a difference. l Acceptance: Once we have adopted a new method, adapted to its use, and have a positive attitude towards it, we must finally accept it as a new method of communication and embrace it.
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April 2016 l Written and compiled by Rick Grant
NMPNext: It’s What’s Next nowing what’s going on in your industry at any given time is critical if you hope to make the kinds of decisions that will positively impact your enterprise. Knowing a bit of history is nice, too, because it puts what you know about today into context and helps you do a better job of predicting what will happen tomorrow. But knowing what’s going to happen next is pure gold. That’s the goal of this new special section of National Mortgage Professional Magazine. Two things you should know about this new section in NMP. First, I’ve been asked to edit it, working under NMP Editor-in-Chief Eric C. Peck. I’ve been around this industry for a while now, starting as a special reports editor under Mark Fogarty at National Mortgage News in 1997. Since then, I’ve interviewed thousands of executives working in our space and written for about half of the trades that serve executives working here. I’m very excited about getting back into that work. I’m not giving up my own company, and I’m not becoming an employee of NMP. In effect, I’m a freelance editor partnering with NMP to bring something totally new to the market. The second thing you should know is that this section is sponsored content. Wait, what? Yes, the companies that appear in this section, the experts I call upon for commentary (in almost all cases) and the firms that are the focus of our in-depth features have all paid a price to be here. Well, technically, they’ve bought in on this new concept and chose to sponsor this section. So, this is the concept. Publications serving our industry have seen rapid growth in sponsored content sales. That makes sense. While display ads are essential brand builders, feature articles and special directory listings are very good at letting buyers know exactly why a given company should be an option and receive an inquiry. As sponsored content has flooded the market, publication readers have been quick to separate this material from “real news.” The result has been that many good pieces go unread because they bear the legend “sponsored content.” Why does this happen? It’s a credibility issue. We’re fortunate to have trade publications that employ really good journalists. Every single pub in our space has reporters that my firm calls upon frequently because we know they get the stories right. They are credible journalists, in every sense of the word. But they don’t write the sponsored content. Typically, the content is written by the sponsoring firm’s marketing department, which tends to make it a brochure. Doesn’t mean it’s not great material. Just means it may not get read. It might be better if the editorial staff could write the material, but they cannot because then they lose their objectivity and their credibility will swiftly follow. It’s that Great Wall of China that publications work so hard to maintain and it’s important. Sponsors could hire freelance writers, and many do, but they maintain strict control over the story and too often it comes out sounding exactly like the brochure. It can be very difficult for a freelancer to hold his ground against a client that pays well and on time.
K
nmp The future of corporate storytelling Angel Oak Mortgage Solutions LLC
Paramount Residential Mortgage Group, Inc.
3060 Peachtree Rd NW, Suite 500B Atlanta, GA 30305 855-539-4910 www.angeloakms.com
1265 Corona Pointe Court Corona, CA 92879 951-278-0000 www.prmg.net
Angel Oak Mortgage Solutions is leading the way in the alternative lending space. Offering wholesale subprime and alt-doc options, Angel Oak brings safety and reliability back to the non-prime market.
Paramount Residential Mortgage Group, Inc. (PRMG) is one of the largest privately held national mortgage bankers and residential home lenders, helping homeowners purchase homes across the U.S.!
Caliber Home Loans Inc.
REMN Wholesale
3701 Regent Blvd Irving, TX 75063 800-754-8955 CaliberWholesale.com
194 Wood Ave. S. 9th Floor 732-738-7100 www.remnwholesale.com Iselin NJ, 08830
Caliber Wholesale’s success is built on a full array of conventional, government and Portfolio loans, combined with our reputation of providing our business partners with the highest level of service.
REMN Wholesale provides same day turn times every day on new file submissions. With a commitment to the broker experience, REMN is leading the way as a preferred partner in the mortgage industry.
Citadel Servicing Corporation
Secure Insight
15707 Rockfield Blvd, Ste 320 Irvine, CA 92618 949-900-6630 www.citadelservicing.com
100 Lanidex Plaza, Suite 1201 Parsippany NJ 07054 877-758-TRUST (7878) www.secureinsight.com
Citadel Servicing is committed to the emergence of Non-QM/Non-Prime lending. Pioneering the most innovative lending programs which include Alt Doc, life events (FC, BK, and SS), $3mil loan amounts and low fico scores.
A vendor management solution. The first settlement agent vetting firm in the industry today offers a host of reliable and affordable risk tools for banks, mortgage lenders and credit unions.
TagQuest Inc.
770 S. Adams, Suite 300 Birmingham, MI 48009 866-333-8311 www.classappraisal.com
711 Medford Center # 240 Medford, OR 97504 888-717-8980 www.tagquest.com
First Guaranty Mortgage Corporation
United Wholesale Mortgage
1900 Gallows Road, Suite 800 Tysons Corner, VA 22182 800-296-2275 fgmcorrespondent.com
1414 E. Maple Rd. Troy, MI 48083 800-981-8898 www.uwm.com
FGMC: Correspondent, Wholesale & Retail + Warehouse Lending. Full spectrum of lending products and services nationwide.
UWM is a forward-thinking, fast-moving and innovatively inspired lender that is always working to champion mortgage brokers and change the game with the latest and greatest technology and services.
nmpNEXT is the future of corporate storytelling. It melds the sponsored content that publications depend upon with the editorial focus that lends credibility to the sponsor's most important stories. In NEXT, Rick Grant, NMP’s Special Feature Editor, will look at what's just around the curve by telling stories about the firms that are leading the way. A variety of sponsorship levels allow advertisers to balance budget with reach and puts marketing managers in control of one of the most powerful channels available for advancing their brands. nmpNEXT is a monthly feature in National Mortgage Professional Magazine. Don't miss this opportunity to brand your company, products and leaders as progressive & forward thinkers.
For more information on nmpNEXT packages, please contact Scott Koondel at 516.409.5555, ext. 324 or e-mail ScottK@NMPMediaCorp.com
n Montana Mortgage Professional Magazine n APRIL 2016
TagQuest Inc. is a full service marketing firm offering the most up-to-date, cutting edge marketing solutions for the ever changing Mortgage Industry. Proudly serving our clients for over a decade.
NationalMortgageProfessional.com
Class Appraisal
We’re an award winning Appraisal Management Company focused on building positive relationships with our business partners. We are revolutionizing the way business is done with our new and exciting technology.
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So how does NMP Next work? This is a hybrid approach to sponsored content that combines a professional industry trade press editor working on a freelance basis with a publication’s internal marketing machine. In this section, I’ll control the content, under the direction of Eric C. Peck. I’m the outside editor working on a freelance basis and Eric is head of the Editorial Department. NMP’s sales team will interact with potential sponsors. If it works, as I suspect it will, we’ll have tossed a rope over the Great Wall, allowing us to work together without compromising what we all bring to the task of sharing the most important stories with the industry. Still, two potential problems seem obvious. First, won’t the Sales Department pressure me to write fluffier articles about companies we cover? Maybe, but Eric will protect me. If he can’t, this experiment won’t last long. Second, why would a rich advertiser agree to let me control a story if they have to pay to be included? Won’t they just walk away? I’m not overly concerned about the fact that some may. There are plenty of opportunities for companies to buy sponsored content, and I’m sure they’ll do quite well elsewhere. Anyone can find a home for anything they want to publish. NMP Next will attract sponsors who are doing great things, who have great stories to tell, executives who are not afraid to look into the future and tell us what they see. NMP Next is for the companies that are driving our industry toward whatever is out there for us to encounter tomorrow. These are the people I’ve enjoyed reporting on for as long as I’ve been in this industry. I think they will embrace this section. I can’t wait to tell you their stories.
What’s Next for Mortgage Brokers
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When the financial crash led to the foreclosure crisis and people started looking around for guilty parties, they looked where they always look during a mortgage downturn. It was decided by some of the nation’s largest bank-owned mortgage lenders that the source of the problem was their third-party origination (TPO) networks and they promptly shut them down, sending tens of thousands of mortgage brokers into different industries. Now, years into the recovery, brokers are still working their way back to a position that, at one time, put them primarily responsible for originating upwards of 70 percent of all home financing available in America. Two forces are driving the return of the mortgage broker. The first is the rise of a number of very large, non-bank wholesale lenders who are actively building out their TPO networks. The second is NAMB—The Association of Mortgage Professionals. In the spring of 2015, NAMB approached wholesale lenders about working together to advance the future of the wholesale lending business. The goals of the inaugural NAMB Wholesale Summit was to brainstorm and exchange ideas on how to change the legal environment where everyone wins, from consumers to mortgage brokers, to correspondents, and even large banks and lenders. More than 15 wholesale lenders answered the call. It was the beginning of an ongoing project to build the wholesale lending business, increase market share and profitability, and address compliance concerns for
both wholesale lenders and their TPO partners. They met with NAMB board members first in Orlando in March of 2015. Since then, they have come together on two more occasions, most recently in San Antonio in February. The February meeting focused on a number of key topics, including marketing to and recruiting Millennials, technology, compliance and legislative action. NAMB President-Elect Fred Kreger took the microphone for the first official session of the day. He presented with Ginger Bell. She focused on the Millennial opportunity, while Kreger talked about shifting our approaching from trying to survive to preparing to thrive. “We want to look at how we can move on from surviving and start thriving. We want to see our channel get off defense and onto the offensive,” Kreger said. Bell shared some very interesting statistics regarding the new generation of homebuyers, the Millennials, and asked the audience to begin thinking about not only how to sell them but how to recruit them. It’s a subject Bell said she had been discussing with people both inside and outside of our industry, including Larry Cox from Pepperdine University. Bell and Cox put together a focus group made up of Millennials who were already in the industry and talked to them about their perceptions, in order to find the problems and create a software solution. The process took a year. “The problem is really the perception of our industry,” Bell said. “The reason is that many universities teach in their business ethics class how financial services is an example of bad corporate ethics. They are being taught to hate us.” And it’s having an impact. Bell pointed to a statistic that showed that every day, 10,000 youngsters turn 21. “We have to address this,” Bell said. “But not internally. We have to take the conversation out of our industry.” With Cox, she has started a financial literacy initiative at Pepperdine. She pointed out that the University had a great finance program, but they had never been approached by anyone in the industry to speak to their students. There was no evidence of mentorship being provided by our industry. But Bell cautioned the audience to think about more than just selling to this group, as these young people will account for three out of four workers within nine years. She promised that the group would explore ideas for recruiting Millennials in an upcoming roundtable. Doing that successfully will require the industry to learn more about them. She provided the following information: u 80 percent of Millennials surveyed believe that they are better off than parents, but
The Future of Corporate Storytelling
u u u u u
53 32 33 22 35
percent percent percent percent percent
are living paycheck-to-paycheck are saving for a house, while are saving for a vacation and are not saving at all still get financial support from relatives
Finally, NAMB Government Affairs Committee Co-Chair Valerie Saunders led the last session of the day with a look at regulatory compliance and some of the work NAMB was doing to prepare brokers. Much of her presentation focused on a recent survey performed by the National Association of Realtors (NAR) in which they asked real estate agents about pain points resulting from the CFPB’s TILA/RESPA Integrated Disclosure (TRID) rule. By the time she was done, everyone agreed that the real estate sales industry still didn’t understand what TRID was supposed to accomplish and were blaming the lending industry for the shift in information flow, sending documents that used to come to them directly to the borrowers in the form of the Closing Disclosure (CD). Lenders are still working through the TRID changes and attendees agreed to continue to work together to ensure that brokers were delivering compliant loans. As the Wholesale Summit came to a close, attendees agreed to reconvene in the fall to continue to work together for the advancement of the wholesale lending industry. The next meeting is set for the fall in conjunction with NAMB National in Las Vegas.
Next Up: A Look at What’s Coming in May
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As more people become exposed to NMP Next over the new month or two, I expect to be bringing you a host of stories from the industry’s most innovative companies. It’s easy to get more information about getting involved in this special section and I look forward to working with sponsors to find out what’s really coming to our industry next. As this issue was heading to press, I was in Los Angeles for the Mortgage Bankers Association’s Technology in Mortgage Banking Conference. I’ll be bringing you the show overview and some stories about the innovations I found on the exhibit hall floor next month. If you were in Los Angeles and didn’t get a chance to visit with me, please get in touch. I’d love to know what you were promoting at the show and what you thought of the event. Please contact me, NMP Special Reports Editor Rick Grant, by e-mail at RickG@NMPMediacorp.com. Also, next month we’ll be preparing for the MBA’s Secondary Market Conference in New York City. As we continue to look for new investors returning to the mortgage market, this annual conference becomes increasingly important. We’ll tell you what we’re hoping to find in New York and look forward to visiting with some who are planning to attend. Finally, our nomination process for the NMP Next Awards will be underway by the time you read this issue, and by next month, I’ll be sharing a bit of information about some of the companies we’re considering for our inaugural awards. I don’t expect the judging to be easy, given the competition we’re already seeing in an industry eager to speed the recovery. If you have questions about this special section, I hope you’ll reach out to me at RickG@NMPMediacorp.com. Over time, I expect it to be one of the first places people look when they’re trying to figure out what’s coming next.
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With homeownership at 64.7 percent, the lowest level we have seen in 19 years, it’s time to get Millennials into homes. After all, it’s 23 percent cheaper to buy a home than rent a house. But do they know it? And will they trust us when we tell them? Bell pointed out that Millennials are afraid of financial services. “Remember, they went through the downturn during their formative years,” said Bell. “They saw their parents lose homes and jobs, as well as their retirement accounts. Now, they are being taught in school that we’re an ethically bankrupt industry.” Some are calling the Millennials the next hero generation. They want to be involved in giving back, doing good. “Why would they get into our industry?” Bell asked. NAMB Director David Luna took the microphone for an entertaining and informative session on technology. He shared a number of videos with attendees that demonstrated the growing comfort level on the part of consumers for today’s latest technologies. He also offered examples, taken from working brokers in attendance, demonstrating how certain technologies are essential for any broker who hopes to do business with the next generation of homebuyers. That requires everyone to keep up, which can be difficult with the Internet of Things a reality and everything moving very quickly. “I’m sure that some brokers are still doing things the ‘old fashioned’ way,” Luna said. “And by that, I mean from the summer of 2015. Or the fall of 2015.” Luna asked lenders in attendance what could be done to help brokers originate more electronic loans. Ultimately, the group agreed that there were so many parties involved in the mortgage that it’s taking time for everyone to get on the same electronic page, even with the work MISMO has done to standardize our data elements. One wholesale lender, who spends time working on a MISMO workgroup estimates that it will take another 10 years for the mortgage industry to go fully paperless. It’s unlikely that consumers will wait that long. The results of Quicken’s Rocket Mortgage will be an indicator. In any event, Luna pointed out that brokers now realize that technology constitutes a competitive advantage and they will gravitate to wholesale lenders that can offer them–and their borrowers–the best tools.
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Mortgage Servicers Get a Dose of What’s Next
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If you had to choose a sector of the mortgage business that has resisted change the most successfully for the longest period of time, it would likely be mortgage servicers. They haven’t had to entice consumers to do business with them and the nature of their work, at least up until the foreclosure crisis, was simply to accept payments and post them to the proper accounts. Up until a few years ago, the industry’s largest servicing software package was still written largely for DOS and servicers worked off green screens tethered to a central mainframe much like every business did in the 1970s. But times are changing. When the nation’s servicers recently came together in Orlando for the Mortgage Bankers Association’s National Servicing Conference, they got an injection of future thinking from a man who has made a career out of figuring out what’s coming next and writing about it. David Pogue is the founder of Yahoo Tech, a former personaltechnology columnist for The New York Times (for 13 years) and a monthly columnist for Scientific American. He has been the host of science shows on PBS’s “NOVA” and a correspondent for “CBS Sunday Morning” since 2002. With more than million books in print, he is one of the world’s best-selling how-to authors. After graduating summa cum laude from Yale in 1985, with a distinction in music, he spent 10 years conducting and arranging Broadway musicals in New York. He has won three Emmy Awards, two Webby Awards, a Loeb Award for journalism, and an honorary doctorate in music. He’s been profiled on “48 Hours” and “60 Minutes.” And … he’s a helluva speaker. He took the stage in Orlando as a keynote speaker for the conference dressed casually, save for the baby grand piano set back on the stage. For the next hour or so, he told the servicing industry what’s coming next and why they’d better learn to deal with the new generation of American consumers if they hope to be successful in the very near future. “The kids who entered college last fall have never lived in a world without air conditioning, running water and the Internet,” he told the
audience. To those of us born in the last century, our kids seem like aliens. They all have devices attached to their appendages. His kids have smartphones, but they never use them as phones. “My kids wouldn’t return a phone call if you paid them,” he said. Understanding how this new generation lives with technology is one key to our success in the future. Millennials are all about mobile, he told attendees, but it’s probably not the mobile we’re used to. When the older Americans in the audience got started with mobile, it was likely with a Blackberry and only to read e-mail. Today’s youth don’t read e-mails. They don’t use it. It’s as outdated to them as a home phone number. Studies show that e-mail use in new business apps has dropped 65 percent in the past year. For the next generation, everything is real-time and appdriven. To interact with them, we’ll need an app they can download from among the 1.3 million other apps currently available on the iTunes store or Google Play. Not only must the industry appeal more to app users, but also begin to share the data these apps collect. Our industry can capitalize on that, but we have to keep our eyes on the Internet of Things (IoT). While he says this concept is only now taking hold, we will soon be living in a world in which everything is connected and the data these devices collect is shared as well. Privacy is not as important to today’s consumers as it was to the previous generation. They share everything from the most recent ride they took through Uber, to the last place they stayed from Airbnb, to the health data their wearable devices is collecting. This, Pogue says, is one exciting opportunity that we’re currently missing in America. Consumers will purchase 70 million wearable health devices this year. We already have piles of health data available to us, mountains of it. “The cure to cancer is hiding in that data,” he said. Maybe with the addition of Google’s “Study Kit” we’ll discover it. But the recent innovation he was most excited by was the new USB port the major hardware providers are building into their new devices. “This is a power connector, a USB connector a video out connector and more. It’s the dawn of the universal power cord for everything. It’s the Jesus Jack!” It will add steam to the IoT revolution because you can charge your device, whatever it is, with anyone’s cord. Pogue did not go into detail about changes he would recommend the mortgage industry make to better communicate with the next generation, but told the audience to expect more disruption. Robots are coming. Self-driving cars. Imagine Uber with self-driving cars, he said. Taken as a whole, his presentation seemed to be meant as a wakeup call for an industry that has thus far avoided change fairly successfully. To put a finer point on it, he finally approached the piano and performed a piece he had composed about a horrible experience he had with a call center. It was a funny song, but few in the audience were laughing. I suspect he hit a nerve. For more information about David Pogue and his thoughts about the future, visit his Web site at DavidPogue.com.
The Future of Corporate Storytelling
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Innovation News Roundup A look at some of the news we expect have a big impact on the industry in the near future. Given that this is our inaugural issue and there has been a lot of activity during the first quarter, we can only provide a short glimpse here. In future issues, we’ll try to look deeper into some of the innovation news that we think matters. You can find the original releases for all of these items online.
DocMagic launches Total eClosing Solution Since the Consumer Financial Protection Bureau (CFPB) asked lenders and their vendor partners to participate in an eClosing pilot last year, the government has become sold on the idea of paperless mortgages. We expect to see a lot of companies bring eClosing rooms online in a big way. While that’s not necessarily new as we’ve had companies offering paperless closings for some time (a recent example was the offering launched by Pavaso and SigniaDocs), what is new is that now lenders have a really good reason to use them. DocMagic has been a strong competitor in all things electronic and document related for some time. It offers its eSign functionality as part of the deal for free.
Nationwide Title Clearing (NTC) offers White Paper on the state of eRecording
Ernst Publishing Company gets traction with its Settlement Agent Gateway offering
Cloudvirga launches intelligent Mortgage Platform (iMP) A tech firm founded by seasoned lenders and tech developers promises to deliver digital mortgage and has already delivered $5 billion worth of loans. While there is no shortage of LOSs in this space (you could build an entire publication just around them), we are starting to see a new generation that gives consumers the sense that they have more control. I don’t think they actually do yet, but these new systems are paying more attention to what today’s consumers want to see on the screen and how they want to interact with lenders. We expect to see a number of loan origination systems move in this direction in the near future. A case in point is a new offering from Arc Systems and Mortgage Dashboard founder Jorge Sauri, which also launched this month.
TeleVoice launches TeleVoice Insight TeleVoice has launched TeleVoice Insight, a call recording solution designed to ensure compliance, improve customer service and allow servicers to quickly resolve customer disputes. Now, we’ve had call recording in our call centers for decades, but we expect to see more new software that is intended to focus more on what matters to industry players—both originators and servicers—today, which is compliance, the borrower’s experience and dealing with borrower complaints. The TeleVoice system is already integrated into the Black Knight MSP platform, which should add more power to that venerable system.
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One of the unanticipated consequences of the CFPB’s TRID rule (and there are have been quite a few) was that lenders suddenly had reason to end relationships with smaller settlement agents who could not be counted on to provide accurate fee data. Without accurate numbers, the lender can’t deliver a Loan Estimate that has any hope of lining up with the Closing Disclosure (CD), which could lead to re-disclosure and failure to meet closing deadlines. Naturally, this scares real estate agents to death. The result was that many lenders began to pull their business away from smaller agents and concentrate it on larger firms that could provide the data they needed. Ernst’s Gateway allows any agent to negotiate and certify fees in advance of the CD. The real benefit is that local LOs don’t have to lose their existing referral networks.
This integration enables lenders utilizing eLynx’s Expedite ID compliance solution to exchange property, fee and loan data electronically with the 3,000 settlement service providers in 47 states using Landtech Data’s XML Real Estate Settlement System. The companies say the resulting bi-directional exchange of data simplifies the collaboration required for lenders to generate the CD mandated by TRID.
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For years, we’ve assumed that the biggest hurdle to electronically recording the mortgage-related documents was the County Recorder. After all, government bureaucrats are not known for being technologically advanced. NTC’s White Paper goes into the Recorder’s Office to find out exactly what these professionals think about eRecording, and it might surprise you. The paper offers a look at the hurdles remaining, from the perspective of the recording professionals.
eLynx integrates with Lendtech Data recently in another move that was likely spurred on by TRID-related consequences
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Platinum Data connects lenders and appraisers Platinum Data has released RealView QB (Quality Bridge), an appraisal quality technology that creates a link between lenders and appraisers. As the government continues to push for more valuation data delivered electronically, it’s useful to have electronic tools that can help lenders and appraisers work together from order to fulfillment. QB is a workflow feature in RealView, Platinum Data’s appraisal quality technology. According to the company, it enables a single, centralized system of record for appraisal quality control. Users can invite virtually any relevant party to access their appraisal quality and underwriting process on a limited, user-defined basis, which I suspect regulators and investors will appreciate. This is another excellent example of innovation that gets the industry closer to what their upstream partners and regulators are asking for.
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BestBorn Business Solutions announces a lite version of its loan level accounting software The firm was pulled into our industry when a lender asked the Microsoft Dynamics NAV developer to customize an accounting package for them. The product turned out so well that the company took Loan Vision to market and today has more than 35 lenders on the system, including wholesale mortgage giant United Wholesale Mortgage (UWM). The lite version will make a scaled down version of the software available to even the smallest lender, who today has to rely on spreadsheets to do work that QuickBooks and similar general accounting software cannot. To get news of your recent innovation into this space in future issues, please contact me, NMP Special Reports Editor Rick Grant, by e-mail at RickG@NMPMediacorp.com. Our industry has always been pretty good at avoiding innovation unless it is absolutely necessary. There are plenty of reasons today that moving on to what’s next is both a competitive and a compliance-related mandate. Let us know why your news is important and why it points to what’s next for our industry.
NMP Next Awards As we working through the planning process for putting this new special section together, we thought long and hard about the kinds of companies we were hoping to attract as sponsors and write about as examples of leading innovators. While we found plenty of examples of companies worthy of writing about, we also saw some stand out examples of innovation in action. I’m not talking about technology, per se. Automation and industry technology is often a requirement when we want to radically improve processes. But there are already some very good industry technology awards. We wanted to focus more on the thought process behind the technology. For instance, there are many good loan origination systems (LOS) on the market. There will likely be more introduced in the near future and some of them will be very good, from a technological standpoint. But will they just be a slightly better, faster or cheaper method of moving data around the same way we always have, or will they fundamentally improve our processes? The latter only comes as a result of careful thought and analysis. That’s what we want to recognize with the NMP Next Awards. Watch the NMP Daily and NationalMortgageProfessional.com for information about the nomination process. We’ll be making our decision early this summer and handing out the awards this July in New Orleans as part of the Ultimate Mortgage Expo. Stay tuned for more information and get ready to tell us about how your team is thinking about the future. It might just win you an award.
Rick Grant is NMP special reports editor for NMPNext and National Mortgage Professional Magazine. He may be reached by e-mail at RickG@NMPMediacorp.com.
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Wholesale Non-Prime Lending
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Achieving a Truly Seamless Workflow-Driven Appraisal Process BY VLADIMIR BIEN-AIMÉ
here are a number of different appraisal management software systems on the market today. They all deliver some form of technology automation, with some vendors doing a more extensive job than others. These systems have various bells and whistles and typically automate primary functions such as vendor management, appraisal ordering, assignments, tracking and delivery to the GSEs Uniform Collateral Deliver Portal (UCDP). And come
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June 27, the FHA will mandate the use of its Electronic Appraisal Delivery (EAD) Portal, which the majority of appraisal software systems will also handle for you. Most systems offer some degree of automation that can assist in making your internal processes more efficient. However, many platforms still require manual input from users in order to move the process along and initiate various actions to complete appraisal orders. Once a manual element is introduced, the process is slowed
and of course when any human element is involved, there is a propensity for errors. This can delay loan closings and errors cost time and money to go back and correct. The implementation of a seamless and workflow-driven appraisal process can remedy the aforementioned. To facilitate such a smooth process, your valuation management software must contain an embedded “workflow engine� within the core platform. The engine applies customizable business rules that essentially
serve as a well-orchestrated conductor that meticulously autotriggers time sensitive events and actions. This removes manual touch points, eliminates data errors, reduces costs and more effectively manages compliance. Examples of tasks that a workflow engine can automate are customized e-mails or file delivery to recipients when an order status changes, scheduling timed auto notifications and reminders, updating order status with a set time interval between status updates or occurrences,
automated real-time reporting, and automated GSE and FHA delivery, to name a few. Further, triggers can be set at specific areas within the workflow such as initiating data analytics, collateral reviews, scoring, etc. There are a great deal of details and complexities in the appraisal process that need to be completed on time in order to prevent costly delays, and of course complete them compliantly. Without a workflow engine automatically knowing when, where and how to call the
shots, tending to important details is tough to stay on top of. A workflow engine is a powerful and important component to valuation management software that many do not know exists. There is so much it can accomplish without the need to involve human intervention. When a process is peppered with so many details, timelines can be missed, errors can be made and noncompliance can become a factor. The appraisal process used to be a simpler part of the mortgage
lending chain. But over the years, it has come to involve more moving parts in addition to and the regulatory landscape has tightened significantly with changing state and federal rules. It’s become much harder to manage and stay on top. More and more lenders and
appraisal management companies (AMCs) are turning to workflow engines to automate appraisal workflows, achieving a completely seamless, workflowdriven appraisal process from cradle to grave. It’s where the next generation of valuation management software is headed.
Vladimir Bien-AimĂŠ is CEO and co-founder of Global DMS, a pioneer of Web-based appraisal process management software and a provider of technologies used across the mortgage process. He has worked in the appraisal industry with Appraisal.com/Day One Appraisal Software as a systems engineer, and in information technology for the Department of Environmental Protection.
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SurveySays Nearly One in Five Originators Still Struggling with
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president and chief operating officer of Williston Financial Group. “When we initiated this effort, there was little hard data available on the impact of tightening regulation on the cost to originate a loan,” said Ozonian. “As an industry, we suspected that new regulations and requirements, such as TRID, were making it costlier to originate, but we didn’t have hard evidence at the industry level. We’re now seeing that kind of information become available, which will help us as an industry to move forward.” The survey also addressed the larger issue of the collective effect of the stricter regulatory environment on costs and operations. Forty-five percent of the respondents estimated that stricter compliance requirements have increased their overall cost to originate a mortgage by between 11 and 30 percent since 2013. A whopping 74 percent of respondents asserted that their operations have been forced to add resources—employees and consultants—dedicated to the interpretation and implementation of requirements promulgated by federal and state regulators since 2013. “The rising cost to originate, no matter the intention of the new regulations, is already forcing dramatic changes in who will originate; to whom they will lend and what kinds of loan products they’ll make available,” said Ozonian. “But it’s not enough to simply complain that regulation is making it harder to make home loans available to worthy consumers. Now, we see more metrics that make the point.” The upcoming report is also expected to include analysis on the perceived cost of compliance on staffing; management focus and the cost and use of technology to adapt. Details are expected soon on the exact date the report will be available, and it will be offered by both WFG National Title and National Mortgage Professional Magazine.
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lmost 19 percent of mortgage lenders and originators responding to a recent survey say that they continue to struggle with the implementation of the TILA-RESPA Integrated Disclosure rule, while another 52 percent of the respondents, although finding the implementation to be disruptive to their organizations, believe they have been able to adapt. The survey and forthcoming report are being co-produced by WFG National Title Insurance Company and National Mortgage Professional Magazine. Almost 600 lenders and originators responded to the initial round of questions, with another 700 chiming in for a supplemental questionnaire regarding the impact of TRID on their operations. The final report summarizing the findings is expected to be released in May. According to the survey responses, almost 63 percent of the respondents characterized the impact of TRID as some level of “surprising,” although 48 percent found the impact to be “somewhat surprising.” As to practical impact, almost 35 percent of the respondents estimated their average closing times to have been extended four to seven days longer than pre-TRID closing periods. Almost 16 percent felt that TRID has extended their average time to close by as much as one to two weeks. Almost 60 percent of those responding to the survey identified themselves as mortgage lenders (banks, credit unions and non-bank lenders), while another 25 percent identified as mortgage brokers or originators. Respondents who did not qualify as originators did not participate in the remainder of the polling. The intention of the survey was to quantify the initial impact of what many consider to be a much stricter regulatory environment in the industry since at least 2013, according to Steve Ozonian,
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visionary organizations 2016 very once in a while, an organization comes along, an organization that sets trends, remains ahead of the curve and sets a bar by which all others strive to attain. This month, we take a look at a sampling of these organizations, organizations that we have deemed “Visionary” for their
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inspiration to always strive to improve and go above and beyond to assist their clients, but ones that have successfully navigated an ever-changing mortgage industry marketplace. We present to you the following movers and shakers in the industry and the leaders behind them.
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WeApprovedLoans.com How the company started: For 17 years ACC Mortgage Inc. has been committed to bettering the financial positions of its customers, business partners and communities. Headquartered in Rockville, Md., this philosophy-driven lender has been owned and operated by its founding partners since day one. With a tried and true lending algorithm, ACC Mortgage, closes the loans that others may see as a financial risk. Experiencing significant yearly growth, ACC Mortgage, Inc. is now a leading portfolio lender. Business partners Robert Senko and Stuart Wolpoff founded ACC Mortgage in 1999 to provide loans to an underserved market. Their vision established an organization that provides high-touch service, easy to understand programs and competitive pricing for residential and commercial customers. In April, 2014 ACC Mortgage completed a two-year process, earning their Community Financial Development Institution (CDFI) certification from the U.S. Treasury. The CDFI Fund promotes access to capital in underserved communities across the nation. How the company has changed the mortgage industry: Our money, our rules! ACC is a portfolio lender specializing in underserved residential and commercial markets. The company has expanded into 14 states, coast to coast. ACC has developed a proprietary algorithm to offer uniquely tailored solutions for underserved clientele, offering a comprehensive suite of loan products and financial services. The company’s success and growth is directly attributable to their unique lending philosophy, commitment to the communities they serve and ability to close quickly. All loans are process, underwritten, funded and serviced at their Rockville location. Loans are processed expeditiously, communication is
clear and friendly. ACC closes loans that may be seen as higher risk by other financial institutions based on a simple and effective lending philosophy: Benefit to the customer and the community; capacity to repay; and fair market value. The company offers the following loan products to residential and commercial customers: Foreign national clients; ITIN customers; low credit score debt consolidation; second chance purchase; commercial and investor loans. ACC is committed to bettering the financial position of its borrowers and promoting economic development and offers the following services and benefits in support of this mission: Financial counseling; CDFIcertified; free credit reports; lending partner programs; and online financial calculators and resources. ACC Mortgage holds a Community Financial Development Institution (CDFI) certification from the U.S. Treasury. The CDFI Fund helps promote access to capital across the nation. As a CDFI, ACC is able to further its commitment to putting community first and lending to and supporting those not eligible for traditional loans. The company’s unique structure and lending philosophy, combined with its superior customer service, communication and responsiveness has led to year over year growth in a growing market. A leader in the private money-lending field, ACC will continue to expand services and offerings.
Alightinc.com How the company started: Alight Inc. was founded in 2006 by Rand Herr, the creator of Pillar Corporation (a tech start-up that was subsequently acquired by Hyperion and Oracle), with an eye toward reinventing how companies run enterprise financial management. A pioneer in the financial planning and analysis space, Rand believes that financial management should be done in real-time, all the time, with input from management and teams in all parts of the enterprise, from CEO and CFO, to operations, technology, marketing, sales and HR. And that those inputs could provide a real-time view on the financial and operational health of the enterprise. Alight spent the beginning of its history in intensive research and development, leading to its current technology platform and product lineup that spans a number of different verticals, including mortgage, mining and technology. How the company has changed the mortgage industry: Alight is changing the way businesses are run. Our applications let executives manage the future by comparing multiple scenarios and taking action in real-time. We’re doing this one industry at a time. Alight Mortgage Solutions provides real-time, industry-specific enterprise financial management applications to the mortgage banking industry. The roots of Alight Mortgage Solutions are firmly planted in the tech sector and in mortgage banking. We understand how to improve the way mortgage banking businesses are run and we have the technical expertise to make it work. Alight Mortgage Lending, is the mortgage industry’s only application for real-time, multiple scenario analysis under any market conditions. It allows management teams to put their hands on critical financial and operational information from anywhere in the enterprise, and then evaluate multiple courses of action and the potential financial ripple effects on
pro-forma operating and financial metrics including P&L, cash flow and balance sheet. Alight provides real-time, any-time access to metrics that matter: Interest rate changes and the effects on warehouse loans, staffing, etc.; change in loan volumes or the mix between purchases and refinances; optimal staffing levels, including productivity and future workload; product profitability; and potential impact on P&L and cash positions based on shifts in the industry. Alight Mortgage Lending connects all the critical, live event-driven information from across the enterprise–including data from your ERP, LOS and G/L–and lets management run limitless what-if scenarios to evaluate the potential ripple effects that changing market conditions and business decisions will have across the enterprise, before, during and after events take place. Delivering up-to-the-minute intelligence to key metrics-driven data from across the enterprise … that means running the business from anywhere, any time and any device. Critical, decision-making information is always available and at the fingertips of those who need it most. Anywhere, anytime, any device. That’s something only Alight can do.
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How the company has changed the mortgage industry: Angel Oak Mortgage Solutions has played a part in the evolution of the mortgage industry since late 2013, when the firm first began offering its nonagency, specialized mortgage products. Since then, Angel Oak has focused primarily on educating the entire industry on “the new sub-prime” and other alternative mortgage solutions for consumers. The new sub-prime—or as we refer to them, non-prime/non-qualified mortgage/non-agency/alt-A—products are sensible and safe options for borrowers who would not generally qualify for agency programs. The safety of these programs is inspired by three main concepts: Ability-toRepay (ATR), Appraiser Independence Requirements (AIR), and “skin in the game.” Despite popular belief, ATR applies not only to agency products, but to all products provided by Angel Oak Mortgage Solutions. AIR ensures that the loan-to-value (LTV) that we lend on is fair and accurate. And, finally, with “skin in the game,” borrowers are required to
make at least a 10-20 percent downpayment for all loans, as borrowers are significantly less likely to walk away after putting so much equity into their home. Since 2013, the market has taken off. Lenders and borrowers are catching wind of non-prime product availability, fueling supply and demand for non-prime products. In 2015 alone, Angel Oak Mortgage Solutions closed loan volume more than tripled 2014 volume, and its network of broker companies has more than doubled. Angel Oak Mortgage Solutions has proven to be the unrivaled expert and market leader in the non-prime market, and will continue to bring much-needed liquidity back to the U.S. mortgage market.
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How the company started: Dedicated specifically to providing alternative lending solutions, Angel Oak Mortgage Solutions began in late 2013 as a small Wholesale Division of Angel Oak Home Loans. The firm’s founders identified a need for different types of loans–such as non-prime and Alt-A mortgage programs–in the market as they were not generally available at the time. Angel Oak Mortgage Solutions separated from Angel Oak Home Loans in October of 2014, and has continued to grow rapidly since. Originally licensed in only seven states, Angel Oak Mortgage Solutions has expanded to 25 states as of March 2016. The firm has tripled its non-agency production each year since inception and continues to establish itself as the market leader in the non-prime space by providing specialized mortgage solutions for brokers and consumers with unique flexibility when applying for home loans.
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CALIBER HOME LOANS Wholesale Lending
CaliberHomeLoans.com How the company started: Caliber Home Loans Inc. has experienced tremendous growth since 2008. And we’re not stopping now. The company that exists today was created in 2013, when Caliber Funding LLC and Vericrest Financial Inc. merged to create Caliber Home Loans Inc., a full-service mortgage banking company. One of Caliber Home Loans’ predecessors, Caliber Funding, came into existence when Caliber’s parent company acquired legacy Bear Stearns origination assets together with its production platform. The business was rebranded to Caliber Funding LLC. Our parent company also acquired the CIT Group’s home lending and servicing operation unit in 2008, along with $9 billion of mortgage and consumer assets. This entity was rebranded Vericrest Financial. In August 2013, Caliber Funding became Caliber Home Loans.
dedicated operational support staff within Caliber’s Regional Operations centers. Broker Associates enjoy perks known within the industry as The Caliber Advantage. They include: Access to H2O, Caliber’s proprietary, state-of-the-art originations system; a wider array of loan options, including non-traditional loans developed by Caliber’s own Product Support executives; support from account executives and dedicated customer relationship managers; the freedom to issue TRID disclosures from their own systems, or Caliber’s; the advantage of choosing their own title agents and companies; and the option to deliver status updates by text or e-mail automatically via H2O. To apply to become a broker associate or for more information, e-mail NMP@CaliberHomeloans.com or visit CaliberWholesale.com.
How the company has changed the mortgage industry: Two major factors in Caliber Wholesale’s vision are a sales-centric corporate culture, combined with seeking new ideas from our wholesale account executives and clients to improve our products and services. Combined with Caliber’s role as a dedicated national mortgage lender, Caliber Wholesale rose to number three in broker originations in 2015–a ranking it has retained ever since. Broker originations have increased by over 78 percent over the past 12 months*. Another industry-changing strategy is the development of Caliber’s Portfolio Lending Suite. These non-traditional loan products are designed to serve qualified borrowers who have the documented ability to repay a mortgage, but who may not meet the requirements for Agency products due to past credit issues or traditional investor/Jumbo guidelines. Caliber’s wholesale account executives are highly-experienced, knowledgeable lending professionals. They are supported by a team of
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CIVICFS.com How the company started: CIVIC has a short history, but a wellcapitalized pedigree. CIVIC was established in 2014 by its parent companies, Wedgewood and HMC Assets LLC, to meet the needs of real estate investors that did not fit within traditional lending criteria. From its humble start in mid-2014, CIVIC has grown quickly, closing 441 loans in 2015 with a total loan volume of $138 million. How can we do that? CIVIC is a direct lender with local control. We underwrite our own files and provide our own appraisals which makes our loan process transparent and fast, closing deals in as little as four to 10 days. How the company has changed the mortgage industry: CIVIC delivers common-sense lending and focuses on building strong relationships with its clients, but its real point of difference is in its ability to have local control of the lending process. CIVIC originates one- to four-year nonowner-occupied investor loans that are competitively priced and funded on tight timelines by leveraging Wedgewood’s proprietary asset valuation underwriting platform. We have teams, both in-house and in the field, who are experts in property appraisals, rehab cost assessments, and estimating market values. Furthermore, CIVIC, with affiliated companies Wedgewood & HMC Assets, offers an exclusive online marketplace with hundreds of REOs and short sales, solving one the biggest problems for real estate investors—finding inventory to buy. Through the Preferred Investor Program, investors can find cooperative short sale listings and pre-list REO that cannot be found anywhere else. Additionally, investors get direct access to the lender to negotiate and streamline the short sale transaction, taking minutes rather than months to negotiate and close deals.
From navigating rigid lending guidelines to dealing with lengthy closing times, traditional banks can be a pain to work with. At CIVIC, we provide you access to the private money you need to fund your real estate ventures quickly and efficiently. With a specialized set of market competitive products, CIVIC makes possible the ability to acquire multiple properties and gives investors leverage over their cash position.
ClassAppraisal.com How the company started: Class Appraisal started in 2009 in response to government legislation that created a need for AMCs to help manage the appraisal process for lenders and banks. Class started with a plan to provide appraisal services nationwide and started with a few small clients. We were fortunate that several of the clients we started working with grew quickly, enabling us to grow along with them. Since 2009, Class Appraisal has grown into one of the top appraisal management companies in the country. We are currently working with five of the top seven wholesale lenders in the country. How the company has changed the mortgage industry: Class Appraisal has changed the way that appraisal management companies are viewed in the mortgage industry. We’ve built a culture internally that focuses on creating a friendly, upbeat environment for our team members to work in. Our internal culture helps foster a special relationship between our team members and our clients and our appraiser partners. Our clients often express to us that they feel more like business partners as opposed to clients. Each client has a dedicated team built out that handles their orders from start to finish to ensure consistency and continuity. Because we are a nationwide company, providing access and assistance to clients in all time zones is essential. We staff accordingly to make sure that our team is always available to assist during normal business hours for clients on the East Coast and the West Coast. The biggest difference between Class and other AMCs is the relationships that we have with our panel of appraisers across the country. The appraiser population has been gradually shrinking the past few years, and it’s more important than ever to build and maintain strong relationships with the professionals that are completing appraisals for our
clients. We have implemented creative benefits for our appraisers like 24 hour quick-pay, an Appraiser Help Desk, and a Preferred Plus Panel that have helped us to make Class a desirable business partner for appraisers. This helps translate into faster turn times, more accurate reports, and essentially more closed loans for our clients. Class has also become a leader in the technology sector in the industry. We have created a proprietary TRID Calculator that has changed the way that our lenders disclose appraisal fees. We also have built an interactive dashboard that allows our clients to access our performance metrics in real-time by state or region.
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How the company has changed the mortgage industry: DocMagic Inc. has become the leading provider of fully-compliant loan document preparation, compliance, eSign eDelivery, eClosing and eService solutions for the mortgage industry. The company’s extensive team of compliance experts and in-house legal staff consistently monitor legal and regulatory changes at both the federal and state levels to ensure accuracy. DocMagic has grown its solution set into facilitating a true endto-end eMortgage process, among its other robust list of widely used software products. Most recently, the company launched its new total eClosing solution, which digitally transforms the entire mortgage process from initial eDisclosure to final eClosing and investor eDelivery from start to finish. In order to effectively address TRID, DocMagic developed
SmartCLOSE, which is a collaborative closing portal that offers a secure, centralized online environment for lenders, settlement providers, and other associates to share, validate, audit, track and collaborate on documents, data and fees. DocMagic’s Audit Engine runs continuously behind the scenes to ensure compliance and everything is accessible within SmartCLOSE, including the eSigning and eDelivery of documents. To date, SmartCLOSE has been well-received by users with rapidly increasing adoption. Also significant is that in 2016 DocMagic introduced a new rep and warrant offering that guarantees TRID compliance of up to $5 million. The insurance-backed guarantee is the most far-reaching compliance guarantee of its kind in the mortgage industry. It is designed to provide peace of mind to lenders when it comes to compliance with the TRID rule. DocMagic is constantly innovating, enhancing existing products, launching new solutions, and forging significant strategic partnerships that have collectively made it the leader in document preparation, eClosings, eMortgages, and other eServices that bring newfound efficiencies to the mortgage industry.
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How the company started: DocMagic’s president and CEO Dominic Iannitti founded DocMagic Inc., in 1988 as a local doc prep firm. Beginning immediately with an unheard-of 24-hour delivery system and followed up with custom form design, the company continued to innovate with the introduction of DocMagic software, the first auditing system, a full compliance department, eServices and on to mobile technology. Today, DocMagic is called upon by lenders to provide cutting-edge services that assure compliance and increase efficiency while reducing loan production costs. DocMagic has enjoyed steady growth over the years by regularly expanding its offerings to accommodate industry demand. Everything DocMagic does is geared toward meeting the needs of clients in a way that simply could not be done without a vision towards the future and the constant evolution of our technologies.
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EllieMae.com How the company started: Founded in 1997, Ellie Mae is a high-tech mortgage software company with old-fashioned values. Now processing almost a quarter of all U.S. mortgage applications, Ellie Mae ensures compliance and high quality. Ellie Mae founders Sig Anderman and Limin Hu started the company with one goal: to use technology to reduce friction, paper, time and cost. They never imagined this simple idea would grow Ellie Mae to what it is today, supporting thousands of clients and millions of mortgage transactions.
America’s best small companies, and has received various industry awards for its Encompass platform.
How the company has changed the mortgage industry: While the industry has changed since the company’s founding almost 20 years ago, Ellie Mae’s mission to automate mortgages so lenders can achieve compliance, quality and efficiency hasn’t. Ellie Mae is committed to innovating how mortgage professionals work together to originate, process and close loans. Ellie Mae’s Encompass software gives the mortgage industry an all-in-one, end-to-end enterprise solution that handles all functions involved in running the business of originating mortgages. Ellie Mae’s Encompass clients save on average $231 per loan, receive 57 percent ROI in less than three months, and avoid up to $75,000 in potential compliance costs. Ellie Mae now processes almost a quarter of U.S. mortgage applications, and is continually recognized as an innovator in the field. The company has been recognized by Forbes as one of
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GenevaFI.com How the company started: In 2006, the company Aaron VanTrojen began his mortgage career with was sold to a large mortgage banking platform. He refused to work for a large bureaucratic, corporate, mortgage bank. In 2007, VanTrojen formed Geneva Financial LLC as a multi-state licensed mortgage banker. In 2008, Geneva began closing loans. Due to the Great Recession, and no “seed” money, Geneva Financial LLC primarily brokered loans during its infancy. After a couple of challenging years, Geneva Financial LLC obtained warehouse lines, and began banking loans through correspondent channels. Geneva Financial is now licensed in 26 states and growing, and employs approximately 250 people. Geneva now sells to a dozen-plus correspondents through mandatory delivery. Geneva Financial is hiring professional loan originators and branch managers nationwide who are looking for an entrepreneurial opportunity. How the company has changed the mortgage industry: Geneva Financial was created to be a mortgage company for the employees first with a vision to treat the loan originator as the client. When the financial crisis was in full swing in 2008, mortgage brokers who traditionally paid the most with the greatest loan product selection, closed their doors in record numbers, and many of those left standing fled to mortgage banking platforms. The mortgage bankers that had survived the near collapse of the entire industry capitalized on this shift from brokering to banking. Some driven by necessity, and others by greed, many mortgage banking platforms increased margins and lowered compensation to those that generated the originations. Geneva Financial formed during this time of industry makeover. With
no legacy issues, and very little overhead, Geneva Financial leveraged the only commodity it had: Originators. Pay the originator the maximum legal compensation, while delivering a competitive price to the homeowner. Geneva Financial focuses on originating and closing “good” loans. We are exceptional at the originating, processing, underwriting and the funding of “good” loans. Quality loans for quality borrowers: Agency, government, jumbo, and even non-QM. Geneva’s focus is not on loan type, but the quality of loan originated; and also the person originating the loan. Geneva Financial stills pays nearly twice the industry average to its loan originators, while delivering a more competitive price than the competition. It does this by efficiently closing quality loans that don’t go bad. And there is the all-important intangible … there are a thousand mortgage companies to work for. While Geneva pays more, is competitive and fast, those that choose to work with us are treated as our most valuable asset … as they are. The industry could use more heart. That is something Geneva offers as well.
MLincSolutions.com How the company started: Established in 1999, MLinc Solutions brings expertise and innovative solutions to the settlement industry in the structuring of strategic relationships between service providers. Mark L Meyer (pictured below), founder and CEO, has always believed that complementary relationships make us stronger, both personally and professionally. Having previously spent several years operating a national mortgage originator with affiliations and service arrangements involving dozens of key industry players across the country, Mark developed a commitment to engineering business associations that are consumer friendly, business-smart and compliant (aka “Strategic Relationeering”). How the company has changed the mortgage industry: MLinc’s Affiliated Business Arrangement (ABA) and Services Agreements solutions and related transformative offerings have brought hundreds of companies the independent expertise and diligence needed to confidently forge thousands of mutually-beneficial business relationships that are compliant with the Real Estate Settlement Procedures Act (RESPA). Specifically, the company’s ABA and Services Agreements Solutions provide tools, templates and videos for helping clients evaluate, sell and set up strategic relationships. And, MLinc’s industry-leading ComplyMSA, ComplyWSA, ComplyEvents and ComplyOffice offerings help companies value and verify services provided by business associates, including marketing activities, Web advertising, sponsored events, and office leases, to enhance RESPA compliance. Collaboration between settlement providers is an important catalyst to creating a better homebuying process. In fact, properly structured relationships between complementary providers to a home purchase are one of the most important contributors to a buyer’s positive experience. Opportunities for compliant collaboration continue to evolve as
technology, buying behavior and regulatory interpretations change over time. MLinc helps clients stay on top of RESPA interpretations, and continues to innovate to help clients implement strategic arrangements that result in a more predictable, convenient, efficient and cost-effective purchase transaction for all. MLinc Solutions may be contacted by e-mail at Info@MLincsolutions.com or call (866)241-6802.
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How the company has changed the mortgage industry: PRMI is a large national mortgage bank founded by loan originators for loan originators. PRMI redefined the corporate/loan originator relationship by creating partnerships that respect local domain knowledge and the power of choice so vital to the success of PRMI’s originators. This innovative business model of empowered operators results in a bestin-class experience for the borrower. We are actively engaged as a respected thought leader positively influencing industry change, and rebuilding consumer trust in real estate finance. We are also a leader in launching breakthrough technologies, utilizing mobile strategy and Big Data analytics to revolutionize the real estate finance transaction. Combining a framework of regulatory compliance and an originatorfriendly business model with strong marketing support and industryleading technology have placed PRMI at the forefront of mortgage lenders.
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How the company started: Headquartered in Salt Lake City, Utah, Primary Residential Mortgage Inc. (PRMI) was founded in 1998 by Dave Zitting, Jeff Zitting and Steve Chapman. PRMI has grown to include Tom George, COO and Burton Embry, CCO in its executive team and evolved into a nationwide, multi-billion dollar operation with over 2,000 employees and nearly 300 branches. The company is licensed in 49 states and serves all segments of the market. PRMI is a privately-held company that focuses primarily on traditional residential loan products. For information on PRMI, please visit PrimaryResidentialMortgage.com.
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PrimelLending.com How the company started: Thirty years ago, PrimeLending opened its doors with a staff of 20 people in Dallas, Texas. Today, the company has more than 2,500 employees working in branches across 41 states, serving the needs of homeowners throughout the country. Since 1986, PrimeLending has helped more than 500,000 families with their homeownerships goals, consistently earning a 96 percent customer satisfaction rating (based on its customers’ rating of loan officers) and ranked nationally as a top 10 purchase lender by MarketTrac (JanuaryDecember 2015). PrimeLending is proud of its numbers, but is even more inspired by its track record of award-winning employee satisfaction. In 2015, PrimeLending ranked fourth nationally among top 10 large companies on the Great Rated! People’s Picks: 20 Great Workplaces in Finances Services. We were named one of the “100 Best Workplaces for Women” and ranked 11th among the “50 Best Workplaces for Camaraderie,” both by Great Place to Work and Fortune.
consumers and business partners, to customized home loan scenario proposals, we leverage innovation to help our customers make smart decisions. However, with every new automated step or enhancement, we never lose sight of the value of personal service provided by our experienced, knowledgeable loan officers. Without a doubt, our talented, dedicated employees set us apart in the industry. We know having a passionate, motivated team that cares about our customers, business partners and each other is our greatest asset. We work together to have a profound and positive impact on the lives of all we serve. We are known for a spirit of service, heart, respect and purpose throughout the organization. Collectively, we are focused on caring more, dreaming bigger, setting our goals higher and achieving them. It’s the secret to PrimeLending’s longevity and success, and the reason so many homebuyers trust us to guide them through the mortgage process.
How the company has changed the mortgage industry: Over the years, we’ve experienced countless innovations and changes—the emergence of smartphones and mobile apps, more stringent federal regulations and changing perceptions about traditional banks, to name just a few. But more things have remained the same—integrity is priceless, personal service makes a difference and Americans still dream of owning a home. We are proud to have been a stable, reliable lender since 1986. Part of our approach to serving the changing needs of home buyers is to provide technology with a warm touch. We continually invest in developing the most secure, innovative and efficient systems and processes. From its Web-based application process, to mobile apps for
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REMNWholesale.com How the company started: The leaders of REMN Wholesale have worked in many facets of the industry before starting REMN. Some were, at one point, brokers and witnessed the frustrations as a broker partner first hand. From these experiences, they created a company built on what made sense. To REMN Wholesale and its partners, the key is the value of time, illustrated by our same day turn times. How the company has changed the mortgage industry: The REMN Wholesale mission is, and always has been, to improve the broker experience. By doing so, we have really set the bar for expectations and what brokers have come to rely on in their lender partners. No other lender can duplicate our customer service, closing department, or same day turn times. Pair that distinction with our education platform and product portfolio, and we have developed a broker experience unmatched and well sought after.
SecureInsight.com How the company started: Secure Insight was originally founded as Secure Settlements and launched in January 2012 as the first mortgage industry vendor management firm focused on settlement agent risk. The company’s risk evaluation and monitoring technology was developed after more than five years of research and development in conjunction with warehouse banks, lenders, former regulators and risk analysts at Lloyds. The focus on data evaluation, risk rating and ongoing monitoring in a shared database was a unique approach to a serious problem and the first of its kind. The privately-owned company’s founders include professionals in the law, banking, title, and insurance fields.
valuable utility for measuring and monitoring risk. Today, SSI has successfully vetted more than 35,000 agents nationwide and serves nearly 100 lenders around the country, helping them manage their regulatory obligations while protecting them and their customers from fraud losses. The SSI database has been accessed in more than 1.5 million transactions to date as a pre-closing quality control tool. Today, nearly five years after the company’s launch, the SSI motto, “Trust, but Verify!” is accepted as an operational risk goal for lenders throughout the mortgage industry.
How the company has changed the mortgage industry: Secure Insight made the term “vetting” a term of art in the mortgage industry. Before SSI was launched in 2012, the evaluation and monitoring of counter-party risk was disjointed, incomplete and very rarely regulated. Despite recommendations from FNMA, OCC, NCUA and others, banks, mortgage lenders and credit unions generally incorporated little or no vendor management process in their operations platform. When they did it almost always was entity-based, and done once and forgotten. With the issuance of new rules by the CFPB in April 2012, the industry gradually began to acknowledge the importance of managing vendor risk. SSI was paramount in promoting this need for both lender risk management and consumer protection. In its early years 2012-2013, the company survived significant push-back from associations and vetting subjects who were startled to discover that a private company was asking personal questions about their business and staff in an effort to assure lenders and consumers that they were safe from the risk of fraud harm. Gradually through a process of excellent service, perseverance and education, SSI became recognized as an industry standard and its database viewed as 61
How the company has changed the mortgage industry: UWM has revolutionized wholesale lending, transforming a historically commoditydriven industry into a client service model that is focused on championing the success of its independent broker clients. From creating an inside sales model to developing game-changing technology, UWM prides itself on helping its clients grow their business. Team members are trained across the life of a loan in order to make their processes as fast as possible. Led by President and CEO Mat Ishbia, UWM is run like no other mortgage lender in the market today. As a former Michigan State basketball player under legendary coach Tom Izzo, Mat learned invaluable lessons on the court that he has brought to the team at UWM. He has instilled an attitude focused on championing our clients, a desire to make every loan a
success, and the ambition to work harder and be better than the day before. UWM’s technology offerings are second to none in the industry. With TRID affecting the ability of so many lenders to close loans in a timely manner, UWM’s UClose tool is a major difference-maker–empowering brokers to go from clear-to-close to closing in just minutes, and put money on the table in less than an hour. UWM’s game-changing UConnect program ensures that brokers stay linked to their borrowers to enhance repeat business. UWM monitors its brokers’ past clients and notifies the broker when their past clients are in the market to purchase or refinance. On top of all that, UWM is leading a movement to create more mainstream awareness of mortgage brokers and the wholesale lending channel. By championing brokers via national television, radio, digital and print media, UWM is constantly pressing to raise awareness of mortgage brokers in the marketplace and educate consumers on the benefits of working with a broker.
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How the company started: Founded in 1986, United Wholesale Mortgage (UWM) is a family -wned and operated company based in Troy, Mich. and operating nationwide. As one of the nation’s largest and fastest-growing wholesale lenders, UWM has an impressive history of growth, innovation and unwavering commitment to its clients. In its early stages, UWM started out as a bricks and mortar retail loan shop and then made the strategic decision to focus on the wholesale side of the business. Since the company started out as a broker, everything we do is through the lens of our clients’ best interests. UWM has a rich heritage in championing its clients and serves its mission of making dreams come true for brokers, borrowers and its team members.
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VantageProduction.com How the company started: Vantage Production LLC is the nation’s leading innovator of the mortgage-specific technology platform—VIP. VIP empowers lenders to deliver exceptional experiences with pioneering customer relationship management (CRM), powerful, automated marketing—complete with content, efficient and effective sales enablement and the most accurate MBS market advisory services. Vantage Production’s solutions help more than 400 lenders and tens of thousands of individual mortgage loan originators throughout the nation succeed every day in our challenging, dynamic market. Established in 2001 as Mortgage Success Source, Vantage Production has more than 70 employees headquartered in Red Bank, N.J. The company’s driving force has always been—and remains—to aggressively respond to the dramatic structural and regulatory changes in the industry, including exceeding the rigorous SOC 2, Type II security requirements. Vantage Production strives to provide lenders with solutions to accelerate production, operate efficiently, recruit and retain top talent and manage risk. How the company has changed the mortgage industry: Just as the mortgage industry has changed over the past 15 years, so has Vantage Production. What has not changed is the company’s commitment to providing the highest quality, most effective and innovative solutions that lead our clients to success. From the beginning, Vantage Production has been focused on helping the mortgage industry adapt to and optimize the opportunities available in a way that builds value for the lender, loan originator (LO), referral partner and borrower. Originally founded to serve individual LOs, Vantage Production offered business-building solutions that allowed LOs to achieve top producer status, including the often-imitated, never duplicated MBS market advisory service, Mortgage Market Guide; the go-to professional development solution,
LoanToolbox and the “set-it and forget-it” automated marketing solution, Platinum Marketing. With the effects of the Dodd-Frank Wall Street Reform and the Consumer Protection Act of 2010, the mortgage industry quickly shifted to operate in an extremely tight regulatory environment. Just as the mortgage industry transformed to be filled with new regulatory guidelines and compliance requirements, it also had new business models and technology capabilities to leverage. Vantage Production developed a single, corporately-controlled solution that allows lenders to adhere to the compliance guidelines through admin controls and audit support—with complete archiving of marketing and presentations— as well as compete with greater productivity and secure more market share and volume in this fast-paced, highly competitive market. From mobile solutions to dynamic websites to centralized databases to real-time integrations, Vantage Production provides mortgage industry leadership and lenders with an environment that drives revenue profitably … while managing risk. Mortgage lenders will continue to adjust their organizations and workflows to more effectively and efficiently go to market. Staying ahead of changes, both at a macro and lender-specific level is how Vantage Production meets the needs of the mortgage industry.
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WaterstoneMortgage.com How the company started: Waterstone Mortgage President & CEO Eric Egenhoefer entered into the mortgage lending business in 1997 as a processor, and quickly moved through the ranks as a closer, loan originator and operations manager. This experience gave him a thorough knowledge of the loan origination process. In 2000, he created Waterstone Mortgage as a company focused on supporting loan originators–a philosophy the organization still upholds today. He put industry best practices to work, building the company to sustain rapid growth in a short period of time. As the company grew, it committed to supporting its loan originators in producing high quality loans, with a strong focus on purchase loans. This approach has allowed Waterstone Mortgage to not just survive economic and industry challenges, but to thrive in spite of them. Today, the company has more than 600 employees in 19 states, and originates more than $2 billion in mortgage loans annually. How the company has changed the mortgage industry: With a primary focus on supporting loan originators, Waterstone Mortgage is a company built around what these professionals need to be successful. Aside from offering our loan professionals superior support–such as in-house marketing, legal/compliance, and loan processing support–Waterstone Mortgage also equips them with a variety of innovative loan products. This makes it easy for loan originators to find a program that caters to the specific circumstances and needs of most borrowers. As a bank-owned organization, Waterstone Mortgage also has the rare ability to develop new products, such as the Wealth Building Loan, physician loans, and one-time close construction loans. For every unique question that arises with loan programs, Waterstone Mortgage is able to provide an answer. As an innovative and forward-thinking company,
giving its loan originators viable and effective solutions is a top priority. Another part of the forward-thinking mentality is Waterstone Mortgage’s ability to provide effective technology to its loan originators. Waterstone has several proprietary systems that were developed with the objective of making the mortgage process efficient, streamlined, accessible, and uncomplicated. By providing full support for its loan originators, Waterstone Mortgage also ensures that it provides the best experience possible to its borrowers. Its variety of loan programs has changed the way borrowers “shop” for a mortgage. No longer are they presented with only one option; many of Waterstone Mortgage’s borrowers are eligible for a variety of programs, so they can choose the loan that best fits their situation. Waterstone Mortgage is dedicated to continuously improving the loan process for our borrowers. They can expect timely updates, transparency, and effective communication as they go through the loan process. After all, they are making what may be the largest financial transaction of their life; Waterstone Mortgage makes it a priority to ensure that they are pleased with the homeownership journey.
GoHomeside.com
TheMoneySource.com
How the company started: Why Homeside? Homeside Financial saw a major need for a company to come in and disrupt the current state of mortgage banking. Hence, it undertook the extensive mission to change the industry from what it is, to what it should be: An industry that cares more about people than profit, an industry that cares about giving Millennials the opportunity for career growth, and an industry that is on the leading edge of technology and process efficiency.
How the company started: Founded in 1997 by Stavros Papastavrou, The Money Source has grown steadily in correspondent and retail lending. In 2013, he partnered with Darius and Mike Mirshahzadeh (twin brothers) and Ali Vafai to form Endeavor America Loan Services as a wholesale division. They have since merged entities to create one of the nations’ largest lenders to also include an in-house servicing division. Licensed in all 50 states, TMS delivers on its brand promise of “Relationships Matter.”
How the company has changed the mortgage industry: Homeside has redefined what it means to be modern in the mortgage industry; not modern in the sense of time, but modern as a state of mind. With modern thought, Homeside has innovated purchase lead technology to increase its average loan officer’s production by 50 percent, all while building a customer experience that is localized and scalable in every market we serve. The results? Decision-making closer to the customer, and more transactions closed on-time.
How the company has changed the mortgage industry: The Money Source places great value on something often overlooked in the mortgage industry — company culture. Whether it’s the company mascot (giant pink Unicorn), the peer-driven employee recognition system or the annual TEDlike “Growing Happiness” conference—our company culture runs deep and defines who we are. Our culture also drives our goal of helping 1 million U.S. households achieve and maintain the dream of home ownership in the next decade. Working with home buyers nationwide, we’ve established a streamlined mortgage process to meet the needs of next-generation homeowners. The company’s CEO, Darius Mirshahzadeh was recognized as one of Glassdoor’s top CEOs for 2015 and has also been recognized by NMP Magazine as one of the Next 40 Mortgage Professionals to Watch. We’re a company driven by our Core Purpose of Growing Happiness as well as our Core Values of People Matter, Inspiring Leadership, Strength of Character, and Rock Solid Service. 63
How the company started: Total Expert was founded by industry veterans on the premise mortgage companies needed a software platform that was intensely focused on innovation and solving common pain points of the end users. Legacy software platforms were growing more inefficient as they failed to address industry changes, such as the need for a solution that will align compliance, sales, and marketing. This massive unmet need fueled the launch of Total Expert.
How the company started: Founded in 1932, Wallick & Volk is the oldest privately-held mortgage company in the United States. We are a family owned and operated mortgage lender. The firm’s four basic values: honesty, integrity, hard work and passion. Wallick & Volk has one mission … to assist members of the community in their efforts to realize the great American dream of homeownership. The company’s business is built upon its knowledge in the mortgage industry and an unwavering commitment to its customers.
How the company has changed the mortgage industry: For the first time in history, the playing field was leveled as lenders were forced to exist their MSAs. This created a vacuum as lenders sought out compliant marketing partnerships in order to continue growing their exposure to consumers through co-marketing efforts with their valued Realtor partners. Total Expert has provided one of the first end-to-end solutions for co-marketing and customer relationship management with a keen eye to compliance tracking. Total Expert’s patent pending technology helps provide lenders with a simple and secure platform to co-market and share marketing costs based on pro-rata basis. The Total Expert platform automates the calculation of pro-rata costs of co-marketing across multiple channels which allows companies to manage and enforce their compliance policies across the enterprise based on RESPA Section 8. With Total Expert as the system of record, all comarketing efforts can be measured, tracked and deployed from a single integrated dashboard.
How the company has changed the mortgage industry: In the digital lending world of today, Wallick & Volk continues to adhere to the core principles founded more than 80 years ago. The company does not use a one-size-fits-all approach. It strives to produce a “WOW” experience for its clients, generate referrals without having to ask. Wallick & Volk has two clients: The prospective mortgage holder and the internal client—the staff that completes the dream for its primary client. Staff is vital, one of Wallick & Volk’s most important assets. Perhaps that’s why the company was recently voted number two on Mortgage Executive Magazine’s 50 Best companies to work for in America. Wallick & Volk is big enough to be ranked in the top 100 mortgage lenders in the nation, yet everyone in the company is known by their first name. Wallick & Volk believes bigger is not better.
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The Skinny on Small-Balance Commercial Multifamily Deals
Three reasons why multifamily deals provide the easiest transition from residential to commercial mortgage lending
By Michael Boggiano It’s no secret … residential brokers across the country are returning to the commercial market as they look for new ways to diversify their business. Many of these novice commercial brokers focus on closing multifamily deals, and for good reason. Multifamily properties (considered commercial if they contain five or more units) are most similar to the residential business they’re used to. If you’ve decided to take on commercial loans, but don’t know where to start, small-balance multifamily deals could be the perfect introduction. Here are three reasons why: 1. You’re familiar with the property type The only difference between a residential and commercial multifamily deal is the property’s unit number. If you’ve closed a residential multifamily deal with one to four units in the past, you should be well-prepared to handle fiveplus units on the commercial side. Multifamily deals typically don’t feature the issues that can impact other property types, such as environmental concerns or mixed-use restrictions. You may wish to work your way to more complicated transactions over time, but multifamily deals provide the easiest starting point.
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2. You already know the borrowers Multifamily borrowers are often the same clients within your existing residential customer base. These borrowers may be the entrepreneurs, small-business owners and other professionals who have trusted you for their residential mortgage. Leverage your relationships by letting your customer base know that you are offering small commercial loans and can now serve their needs for multifamily purchases and refinances. Examine the real estate-owned (REO) section of closed 1003s to identify current commercial property owners who may be interested in your new offerings. Your clients will appreciate knowing they can come to you for commercial loans, even if they don’t have a deal for you right now. 3. You have more opportunities to close deals According to a recent Mortgage Bankers Association (MBA) report, commercial multifamily originations increased by 24 percent in 2015. As this niche market continues to grow in 2016, some small-balance commercial lenders are meeting the needs of a wider range of multifamily borrowers through streamline programs that typically require no tax returns or 4506-T requirements. These programs give you more opportunities to secure funding for selfemployed professionals, borrowers who recently renovated their property, and other types of clients who often struggle to get loans because of documentation and income verification issues. Every streamline program is different, so be sure to ask a lender for a detailed program description before you start marketing to prospective clients. One of the most interesting aspects of commercial mortgage lending is that no two properties are alike. Warehouses, retail shops, self-storage facilities, offices and other building types each feature challenges you will learn to overcome as you grow more experienced in the commercial arena. For now though, your best strategy may be to leverage your expertise and master the small-balance multifamily niche. By closing deals and growing your commercial network, you will enhance your reputation as a trusted advisor and earn the respect of borrowers and lenders alike. Michael Boggiano is national sales manager for Silver Hill Funding, a small-balance commercial mortgage lender offering nationwide financing from $250,000 to $1 million. He may be reached by phone at (888) 988-8843 or e-mail MikeB@SilverHillFunding.com.
SPONSORED EDITORIAL
heard on the street continued from page 37
Forsythe Appraisals and top-quality panel appraisers. This new valuation offering includes software solutions from ACI, fraud detection, loan quality and compliance analytics supported by First American’s number one industry position in real property data coverage. The expanded valuation capabilities broaden First American Mortgage Solutions’ end-to-end offerings and support its commitment to the Pursuit of Certainty in Lending. “We are delighted to have Forsythe Appraisals join the First American family. With more than 75 years of appraisal expertise and a loyal, blue-chip client base, the addition of Forsythe Appraisals accelerates our efforts to help lenders and appraisers deliver a defect-free mortgage, while providing a superior consumer experience,” said Kevin Wall, president of First American Mortgage Solutions. Forsythe’s management team, including President and CEO John Forsythe, Senior Director of Customer Development Tim Forsythe, and Chief Appraiser Alan Hummel, will continue to lead those operations. “Joining the First American family strengthens our ability to provide our customers with continually improving valuation products and services in today’s changing business and regulatory landscape. The Forsythe team will now have access to First American’s industry-leading property data, as well, further enhancing the quality, accuracy and speed of our appraisals,” said John Forsythe. “Our employees will also benefit by being part of a company recognized in 2016 by Fortune magazine as one of the 100 best companies to work for in America.”
Guardian Mortgage Opens New Michigan Office Guardian Mortgage Company will expand its Michigan footprint with the grand opening of its Troy, Mich. location, marking Guardian’s second Michigan location— the first in Grand Blanc—and the 10th office in the U.S. Guardian currently operates offices in Grand Blanc, Mich.; El Paso, Plano, Arlington, Richardson and San Antonio, Texas; Santa Fe and Albuquerque, N.M.; and Scottsdale, Ariz. Several more offices throughout Texas, Arizona and Colorado are slated to open throughout 2016. Dave Jansen will serve as branch manager at the Troy location, and a number of experienced loan officers will join his team. Jansen says he is more than ready to start serving Michigan area homebuyers. “We are so excited to broaden our reach in the great state of Michigan,” Jansen said. “Our team cannot wait to
get in there and start working with local residents, guiding them on their journeys and helping them get the best financing possible.”
IRS Partners With the MBA on “Tax Design Challenge”
The Internal Revenue Service (IRS) has announced the upcoming start of its first Tax Design Challenge crowdsourcing competition to encourage innovative ideas for the taxpayer experience of the future. The effort, being done in coordination with the Mortgage Bankers Association (MBA), is a crowdsourcing competition open to the public. The competition will engage teams of designers, developers, and innovative thinkers across the U.S. to envision options for taxpayer interactions. “Crowdsourcing is a new activity for the IRS, but we believe working with citizens and the private sector will help support innovation in an important area for the nation’s tax system,” said IRS Commissioner John Koskinen. “The Tax Design Challenge reflects our commitment to find the best ideas and plan for a future state of tax administration that works well for taxpayers and our partners.” The three-week competition invites the public to imagine the taxpayer experience of the future and specifically design an online experience that better organizes and presents a person’s tax information. The goal is to make it easier for a person to manage their tax responsibilities, and use their own tax data to make informed and effective decisions about their personal finances. “At MBA, one of our goals is to help families achieve home ownership, and the ability to safely obtain and share one’s own tax information is critical to that process. Ultimately, the designs produced through this competition could help millions of Americans securely interact with our tax system faster and easier,” said David H. Stevens, CMB, president and CEO of the MBA. Submissions will be accepted starting April 17 through May 10, 2016. Participants must first register on the site TaxDesignChallenge.com. Throughout the competition, participants will have the chance to engage with policy experts and a network of mentors that include world-class strategists and designers from government and non-government organizations. The winning designs will be showcased in an online gallery and receive monetary prizes, funded exclusively by the continued on page 91
LYKKEN ON
leadership
Five Ways to be Prepared for Inevitable Failure By David Lykken
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that will be occurring in the future, you can build your contingency plan around those things. Having that kind of business intelligence will give you the insight to give yourself a buffer against the changes when they come. Failure is almost always more devastating when you don’t see it coming. Stay informed, and you won’t be blindsided when the inevitable failure comes your way. One final way to always be prepared for failure is perhaps the most important: You’ve got to stay positive. While this may sound cliché and overdone as a piece of advice, it should not be taken lightly. If you lose your positive attitude, everything else will go with it. Negativity is a poison. It will lead you to put all of your eggs into one basket, out of fear. It will spread to your team and lower morale. It will skew whatever information you take in while you’re building your plans for the future. Staying positive isn’t about being touchyfeely; it’s about always focusing on what you can do to improve your situation rather than finding excuses and wallowing in self-pity. Positive thinking is powerful, not merely because it makes you feel good, but because it leads to positive action. If you allow positivity to pervade everything you do, you will be ready when the failure comes. Stay positive ... and you might just stay alive. 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@TMSAdvisors.com.
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you. But it’s a good idea to at least dabble in an array of areas. You’ve heard the adage: don’t put all your eggs in one basket. In times of success in any given area, there is always the temptation to put everything you have into that one direction. Don’t give into that temptation. You never want to be the position that losing one thing causes you to lose everything. As much as possible, diversify your activities. The more you’re involved with, the quicker you can respond to the failure when it comes. A third important step to taking in bracing yourself for failure is to focus on building a solid team. A leader is only good as those who follow. When your organization faces failure, the question isn’t so much how you will respond but, rather, how your team will respond. Will your people be able to quickly adapt and move in a new direction? If you do have team that responds quickly to failure, then you can survive almost anything. If not, then it doesn’t matter what other plan you have in place—it won’t work. So, how do you build the team needed to weather the storm? It all has to do with how you hire and develop your team. Obviously, certain team members need to have some level of expertise in their respective fields. But, the more you can cross-train, the better. You want to have people who can adapt to changes. If you don’t, you may have to let people go when certain aspects of the business don’t pan out—and that could lead to loss of morale. Whatever you do, don’t neglect to put a heavy focus on your people. The captain can never survive the storm without his crew. A fourth way to be prepared for failure is to stay informed about what’s going on in the industry and in the world. This all goes back to planning. If you are aware enough of the issues to project what kinds of regulations, economic situations, and sociological trends
NationalMortgageProfessional.com
he mortgage industry has had its share of ups and downs over the past decade. Since the financial crisis, the regulatory environment has produced a seemingly unending array of legislative challenges that are making it increasingly difficult for the mortgage industry to operate. On top of that, we have sociological challenges with Millennials, economic challenges with wage stagnation, and geopolitical challenges with all of the things that are happening in other countries. All of this comes back to apply more and more pressure on the industry. For those who have made in this far without losing out in any big way, you might want to count your blessings. But, more importantly, you might want to start thinking about how to prepare for the inevitable failure that’s bound to come your way soon enough. We all fail. Even when conditions are perfect and we’re at the top of our game, anything can happen that can throw our business out of balance and leave us scrambling to put things back together. The risk of failure is even greater for us now that we know what we’re up against. The question isn’t whether or not you’ll fail … the question is what you’ll do when it happens. We all love a good underdog story. We like our heroes to go against the odds to overcome setbacks and recover from failures in order to achieve his goals. In real life, we face the choice of deciding which kind of heroes we’re going to be every day. In the mortgage industry, we will face setbacks. We will fall and we will fail. What we need to ask ourselves is: Do we want to be the hero that falls and never gets back up, or do we want to be the hero that falls and rises again? There’s a saying that I’ve always appreciated: “If you haven’t failed, then you probably haven’t been in business long
enough.” I’ve heard that, in the Silicon Valley, if you haven’t failed at least a few times, investors won’t even take you seriously. In other words, failure is normal. It’s only devastating if you allow it to be. And now, if you haven’t yet faced that lifethreatening failure in your organization, you have the unique opportunity to be ready for it. What can you do now to ensure that you’ll survive when the inevitable failure comes? I suggest a few things ... The first thing you need to do if you want to prepare yourself for a big failure is to plan for it. You are only as good as your contingency plan. Ask yourself: if what you were doing right now no longer worked, what would you be doing instead? If you wait until you fail to make that decisions, you’ll be scrambling at the last minute to come up with something that works. However, if you have a plan in place already, you’ll be able to pivot into and waste a minimal amount of resources making that transition. Priding yourself on having “no Plan B” in order to show how committed you are is all well and good until Plan A fails. Then, you will wish you would have developed that “Plan B” after all. There is absolutely nothing wrong with having another plan in place for your business in the event that your current course of operations no longer works. If you don’t have such a plan, it means that you probably don’t really believe you can fail. It’s a nice sentiment, but it’s unrealistic. We all fail; those who ultimately succeed aren’t those who deny the fact but, rather, those who prepare for it. Fortune favors the prepared. A second, and related, thing you may want to do in order to prepare for failure is to diversify your current operations. If you are only in one kind of business or only serving one market, you are taking a greater risk than you need to. Every organization has its cash cows. There’s nothing wrong with focusing on one particular segment, if that’s what works for
The Long & Short:
nmp news flash continued from page 31
The Business of Short Sales
Combining Hardest Hit Funds With Existing Refi Programs Can Help Millions of Underwater Homeowners By Pam Marron There are five existing refinance loans available for underwater homeowners that allow for: New secondary refinancing; no maximum combined loan-to-value (CLTV) of the first and second mortgage; and mortgage payments to stay current. This could enable Hardest Hit Funds to be used as a new second mortgage to refinance underwater higher second mortgages and resetting interest-only home equity lines of credit (HELOCs) unable to be refinanced. One of these mortgages, the FHA Short Refinance, can even provide a refinance where none is available for conventional first mortgages that are not Fannie Mae or Freddie Mac, therefore not eligible for the Home Affordable Refinance Program (HARP). The five refinances are:
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1. Fannie Mae DU Refi Plus Home Affordable Refinance Program (HARP) for existing Fannie Mae conventional first mortgages 2. Freddie Mac Relief Refinance (HARP) for existing Freddie Mac conventional first mortgages 3. FHA Short Refinance for negative equity non-FHA first mortgages 4. FHA Streamline for existing FHA mortgages 5. VA Interest Rate Reduction Refinance Loan (IRRRL)
most notably Denver (99.8), Austin (99.1), Salt Lake City (97.7), Honolulu (97.6), and Los Angeles (96.9). Nonetheless, Freddie Mac warned that “pockets of weakness” persisted in the Great Lakes region and in Southern states except for Florida and Texas. Freddie Mac Deputy Chief Economist Len Kiefer greeted the data with a cautious warning on the lingering problems related to housing affordability. “Despite a stronger jobs market and declining unemployment, wage gains have not kept pace with house prices putting a pinch on homebuyer affordability,” he said. “In the top 100 metro areas MiMi tracks, Los Angeles and Honolulu have elevated payment-toincome indicators and Miami, FL, is very close to elevated. An additional six metro areas have their MiMi paymentto-income indicators over 100, indicating that the payment-to-income statistic for that area is above its historic benchmark … Mortgage rates fell at the start of the year, helping to bolster affordability heading into the spring season. But a lack of available inventory of forsale homes has constrained many markets. We see that reflected in the MiMi purchase applications indicator, which remains weak nationwide.”
Can Mother Nature Mess Up Mortgage Reviews?
Written guidelines for five refinances 1. Fannie Mae DU Refi Plus (HARP): B5-5.2-01: DU Refi Plus and Refi Plus Eligibility (03/29/16) l No maximum loan-to-value (LTV) ratio for fixed-rates and no maximum combined loan-to-value (CLTV) and home equity combined loan-to-value (HCLTV) ratio. l Eligible subordinate financing: New subordinate financing is only permitted if it replaces existing subordinate financing. l Using Hardest Hit Fund Programs (HHF) for principal reduction or closing cost assistance: Housing Finance Agencies (HFAs) have established programs utilizing HHF programs, which provide funding for various purposes, including funds for principal curtailment, to help homeowners obtain more affordable mortgages or to help homeowners retain their homes. l Existing mortgage must be current for last 12 months. Note that the Home Affordable Refinance Program (HARP) will expire Dec. 31, 2016. 2. Freddie Mac Relief Refinance Mortgages (HARP): Same Servicer and Open Access 2016 l No maximum Loan to Value (LTV) ratio for fixed-rate mortgages and maximum LTV ratio for ARMs is 105 percent. There are no maximum Total Loanto-Value (TLTV) or Home Equity Total Loan-to-Value (HTLTV) ratios. l Secondary financing: Existing junior liens may be refinanced simultaneously with the first mortgage provided the junior lien is being refinanced for one of the following: l A reduction in the interest rate of the junior lien, to replace an ARM, a balloon or call option with a fixed-rate, fully amortizing junior lien. l A reduction in the amortization term or the monthly payment of the junior lien. l Evaluating the borrower’s credit reputation: If an Accept is received through Loan Prospector, the credit reputation is acceptable. Otherwise, the homecontinued on page 95
There are numerous factors that can improperly influence the approval of a sketchy mortgage application. But can an abundance of sunshine result in the clouding up of a loan officer’s better judgment? According to a KPLU report, new data from the University of Washington has determined that the weather plays a role in determining whether a marginal mortgage application is accepted or rejected. The research paired the weather with the level of loan officer decisions and concluded that more approvals occurred on unexpectedly sunny days while more rejections piled up on unexpectedly cloudy days. “We sort of know from psychology that when it’s cloudy, people tend to be less happy than when it’s sunny,” said Ran Duchin, associate professor of finance at the UW Foster School of Business. “You can get that data at an hourly level across all weather stations in the U.S. You just get it online.” Alas, the surplus amount of sunny day approvals turned out to be more likely to go into default. “The cool thing about this data is
that for all the applications that are approved, we could actually trace the performance of those loans being originated, after they’re approved,” Duchin said, adding that it was incumbent on lenders to investigate “to what extent should we automate some of the decision-making processes ... to avoid this sort of human factor, these mistakes.”
Equifax: $1.82T in New First Mortgages in 2015
Last year saw $1.82 trillion in new first mortgages originations, according to new data from Equifax. This marked a 42.9 percent increase from 2014, while the total number of new first mortgages originated last year was 7.71 million, a year-over-year increase of 31.6 percent. Furthermore, last year saw more than 791,900 in home equity installment loans, an increase of 26.7 percent from the previous year. The total balance of new loans in that same time was $26.5 billion, an increase of 20.8 percent. There were also more than 83,000 new loans originated for borrowers with subprime credit in 2015, a year-over-year increase of 31.2 percent. During 2015, 10.5 percent of all loans were issued to sub-prime credit borrowers, a slight increase from the 10.1 percent level in 2014. As for the home equity lines of credit (HELOC) market, the total credit limits of new loans originated in 2015 was $146.1 billion, up 19.7 percent from the previous year. In 2015, the total number of new loans originated was just under 1.39 million, an increase of 11.7 percent over 2014. There were 20,100 HELOCs loans originated for borrowers with subprime-credit in 2015, an increase of 15.2 percent and the highest total since 2008 (35,660 loans), and total credit limits on new subprime HELOCs in 2015 was $745.2 million, an 8.5 percent increase and the highest total since 2008 when they totaled more than $1.78 billion. “We saw a nice jump in mortgage lending in 2015 that was driven by both rising home-purchase activity and solid refinancing volumes,” said Amy Crews Cutts, senior vice president and chief economist at Equifax. “While low interest rates are helping, continued gains in employment and consumer confidence are key. What we are not seeing is any meaningful loosening of underwriting, at least with respect to credit scores. continued on page 93
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“There aren’t many things uglier in this world than unrealized potential, so I’d like you to seriously consider the option of hiring a coach.” credit: comstock
Timeout!
Time for Some Coaching to Reach the Next Level BY BUBBA MILLS
69 “If you do what you’ve always done, you’ll get what you’ve always gotten.” —Anthony Robbins
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and start thinking about the day ahead? What items on your to-do list cause even the slightest bit of dread? 3. What do want most in the next year in your career? What about the next five years? What’s the true carrot you’re chasing?
Every single lender has more potential than they’re tapping right now. There aren’t many things uglier in this world than unrealized potential, so I’d like you to seriously consider the option of hiring a coach. It doesn’t have to cost a lot. And you can learn about them for free. I know my company offers a free consultation (and many others do too). And once you hire one, it might just be for an hour or two. Not much money at all. The return on investment might well turn out to be a slam dunk!
1. Where are you in your career? Is your career where you imagined it to be when you started in mortgage lending? If not, why not? Do you sometimes find yourself wishing you were as successful as other lenders in your market? 2. What do you want changed in your career? Think about Monday mornings: What bugs you when you get out of bed
Bubba Mills is CEO of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 957-8353 or visit CorcoranCoaching.com.
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4. Here’s the real kicker: Are you having trouble answering how to make the changes for questions two and three—how do you eliminate the dread and how do you reach your dreams? If so, you I’d like you to seriously consider a coach. Thousands of lenders have been where you are now. Those who chose help are
now achieving their dreams in mortgage lending. I’ve seen it over and over in my career as a coach. NationalMortgageProfessional.com
arning … if you only want what you’ve always gotten, don’t waste your time reading this article. Okay, now that that’s out of the way, let’s begin. If you happened to catch any of March Madness—the NCAA basketball tournament—did you notice how when things start going wrong for a team, its coach almost always calls a timeout? Good coaches can see what’s going on to cause the lull in scoring, so they huddle the team to make adjustments— to do something different. Mr. Robbins’s quote above is spot on. Well, this article is a timeout for all you lenders out there who are feeling you could be scoring more points in mortgage lending but for some reason (or reasons) you’re not. I’ve been in the business for decades and I have yet to see a successful lender or team of lenders who were successful without at least some coaching. I know, when you hear the word “coach,” you think you’re
giving up your independence. You’re independent. I’m independent, too. That’s one of the reasons I got into this industry. It allows for independence. But when you look at the facts, the actual numbers, the truly successful people in this industry have had (or do currently have) coaches. Every pro team has a coach. Show me a team without a coach, and I’ll show you a losing team. Coaches are those who’ve been on the court and know how things can go haywire. And better yet … coaches know how to change things to make the ball go into the basket. I want to you to take a timeout for the rest of the article and consider the following:
“It sounds obvious, but effective leadership is necessary to keeping employees engaged—and both are tied to boosting your bottom line.”
The Key to Driving Your Mortgage Business Forward … You By Chad Jampedro In the mortgage industry, we are constantly faced with factors beyond our control, from the ebbs and flows of the greater economy, to changes in housing policy and service regulations. Yet, how we choose to lead our lending businesses is entirely in our hands. If you’re like most people, you’ve
had a less than stellar job or two in your past. How many of those memories are tied to a “bad manager?” Probably more than you’d like to admit. According to human resources expert, Susan M. Heathfield, so-called “bad bosses” come in a number of vari-
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The right products The right culture Caliber Home Loans, Inc., provides Account Executives with: A
full array of A Agency gency pr products, oducts, plus a suite of pr proprietary, oprietary, non-Agency non-Agency portfolio portffolio o solutions
Regionally-assigned Regionally-assigned A Aggressive g ggressive In-house
Oper Operations ations C Centers enters and suppor supportt staff
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eties (but we knew that, didn’t we?) Still, Heathfield was able to narrow down the most commonly cited characteristics. Here are the complaints that topped the list: l They choose favorites. l They fail to communicate and may not have clear expectations. l They use inappropriate disciplinary measures. l They speak loudly, rudely or onesidedly to staff. l They take credit for the successes and positive accomplishments of employees. l They fail to provide rewards or recognition for positive employee performance. It sounds obvious, but effective leadership is necessary to keeping employees engaged—and both are tied to boosting your bottom line. In 2013, Gallup found that 70 percent of American workers were “not engaged” or “actively disengaged” in their current roles, a statistic often tied to so-called “managers from hell,” according to the study. In fact, these bad managers are not only responsible for creating disengagement among their team members, says Gallup, but are also costing the U.S. an estimated $450 to $550 billion every year.
How much is it costing you? Employees who are not engaged are more likely to be emotionally disconnected, and thus, much less productive. In our business, that means lackluster customer service, slower processing, and fewer employees who are motivated to initiate or follow-up on sales leads. Disengagement impacts the very core of our business—guiding our customers along the path to homeownership.
Millennials take over the workforce Understanding how to leverage you leadership begins with understanding your employees’ needs. Over the years, employee expectations have greatly
changed. The recession upended the status quo and workers no longer want a job to simply “clock-in and clock-out” of. They want a career with a purpose. This is no truer than among the Millennials. According to Pew Research, Millennials (adults ages 18 to 34) surpassed Generation X to become the largest share of the American workforce in 2015. With so many Baby Boomers retiring, the mortgage industry is being forced to reconcile with a new generation of workers—especially as Millennials move into leadership roles. And it goes way beyond setting up a foosball table or offering the occasional free lunch. Tapping into the Millennials’ conscious is vital to avoiding high turnover rates. This group is highly fickle when it comes to staying with an employer for more than a few years. In fact, a 2016 Millennial Survey by Deloitte found that one in four Millennials would summarily quit their jobs to join a new organization or to start a new career. If given a twoyear wide frame, roughly 44 percent would do so. Millennials were also more responsive to creative or collaborative environments, rather than traditional, or authoritarian workplaces. Turnover is expensive, so it is imperative to appreciate where Millennials are coming from. While the prospect of personal financial gain is certainly a motivator, Deloitte says that Millennials additionally value an employer’s reputation— both internally, and externally. For example, more than six in 10 of respondents referenced the quality of its products (63 percent) and levels of employee satisfaction (62 percent). Another 55 percent weighed the employer by the level of customer loyalty and satisfaction. So, having disengaged employees on staff may actually harm your recruiting efforts. “When salary or other financial benefits are removed from the equation, work/life balance and opportunities to progress or take on leadership roles stand out,” the study states, adding that flex time and training also topped the list. “An employer
that can offer these is likely to be more successful than its rivals in securing the talents of the Millennial generation.”
Helping employees chart a career path Let’s go back to the idea of purpose. The majority of employees strive to be more than “paper pushers.” As such, many employees crave professional development opportunities. In the Deloitte Millennial study, more than 60 percent of respondents felt their “leadership skills are not being fully developed,” and only 28 percent felt that their current employer was making “full use” of the skills they currently held. In the mortgage industry, this can include one-one-mentorship, technical training or group educational ses-
sions—either on the mortgage industry itself, or about how your mortgage company operates. These sessions— either one-on-one or group-focused, gives employees the ability to share their ideas and build team relationships. In fact, it can be a great opportunity to let your employees in on how their role impacts the overall mission of the organization. From a manager standpoint, it quite literally pays to pay attention to the wants of their employees. Managers should encourage free and flowing communication, encourage ideas and support the ambitions of their employees, says Deloitte. While Millennials are often touted with being narcissistic and impatient, they are not alone in their sentiment. Time and time again, employees report feeling excluded from sharing their
ideas, and being given opportunities to climb the corporate ladder.
Take a pulse Most managers don’t set out to be “bad managers.” Some are just overwhelmed with work, are focused on bigger goals within the company, or completely unaware of how their behaviors may be affecting their team. Taking a pulse on the satisfaction levels of your employees is one of the simplest ways to gather insight into employee satisfaction levels. Partnering with an employee survey company, for example, or creating a survey of your own, are simple ways to gather insight. These surveys are almost always anonymous and give employees an outlet to express their feelings—good and bad—without repercussions.
While setting up these surveys often comes with a price tag, it’s worth the investment. Regular meetings to discuss new regulations and processes or changes to one’s role, can also help managers gauge employee satisfaction in the meantime. The more communication that is facilitated between managers and employees, the easier it will be to spot choppy waters, before the boat capsizes—or in our case, the house falls in. Chad Jampedro is the president of GSF Mortgage Corp. With more than 20 years in business, GSF Mortgage has embraced the next generation of homeowners with its GoGSF brand, continuing its dedication to flexible and transparent lending. He may be reached by e-mail at CJampedro@GoGSF.com. 71
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“Leadership is a commodity and those who possess it are quite often held in high regard when they use it wisely.”
The Fine Art of Achieving Leadership Greatness By Michael Groff When you Google the word “Leadership,” approximately 737,000,000 results come up in the search. You can read articles and opinions for days about the psychology of a leader, leadership skills, leadership styles, the qualities of a great leader, determining whether a leader is born, teaching leadership qualities, etc. The options are never-
ending. There are countless leadership training programs, educational courses, seminars, conferences, workshops, videos and speeches … you name it. Each promises to create leaders, boost sales, change lives, assemble teams, etc., all with the purpose to ultimately help you achieve leadership greatness.
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It makes me wonder: What is our obsession with leadership? Our society idolizes, glorifies and vilifies our leaders. All it takes is a few moments of watching the discussions on the evening news to see it firsthand, especially in the year of Presidential Election. Our politicians glorify and vilify one another right along with the public. People love to be inspired by great leaders and innovators, such as Steve Jobs. When he was living, we highly anticipated his next revolutionary idea. People waited in lines for hours, even days, to be the first to purchase whatever product that was offered at the next Apple unveiling. Now that he has passed away, we read his biography, view his TED talks, repeat his quotes and watch the movies that Hollywood produced about his life. We idolize him as a great leader, a hero of information technology. He’s truly fascinating to a large portion of the population. Then, you take someone who posed himself as a great leader, such as Bernie Madoff, who turned into a villain. He schemed, plotted and lied his way to the top, all the while, leading people through one of the largest financial fraud cases in U.S. history. Both Steve Jobs and Bernie Madoff have changed many lives and made a profound impact on our society, obviously for absolutely different reasons. And, in these extreme cases, it is clear to see why we are obsessed with their stories. But what about the everyday leader? The small business owner who employs a handful of people, the teacher shaping the adults of tomorrow, the chief of police at the local station keeping neighborhoods safe … do they possess the same skills as the famous leaders? My guess is, yes, to some degree, but it also depends on who you ask. In my opinion, leadership is hard to define and it means different things to different people. In the Merriam-Webster Dictionary, leadership is defined as, “A position as a leader of a group, organization, etc.; the time when a person holds the position of leader; the power or ability to lead other people.” Those are pretty basic definitions for a subject that is extremely complex and farreaching. No wonder we have a fascination with trying to define it, grasp it, bottle it and teach it. Leadership is a commodity and those who possess it are quite often held in high regard when they use it wisely. A question that arises in regard to lead-
ership is what are the qualities of a good leader? One of my favorite quotes is from former President Dwight D. Eisenhower who said, “The supreme quality of leadership is integrity.” While there are many opinions on the qualities of leadership, I completely agree with the importance of integrity. Growing up in a small farming community in the heart of the Midwest, my parents owned a multigenerational plumbing and heating business, and integrity was a way of life. In order for the family business to prosper, there was no question we had to be honest and fair and conduct ourselves with integrity. In a small town, you could not thrive, let alone survive, any other way. Later in life, when I was building my career in the mortgage industry, that value stayed with me. When I made my way to Wallick & Volk, I was immediately struck by the core values that the company was founded on, in 1932: Operate with trust, speak with good purpose, strive for mastery, conduct ourselves with integrity, encourage personal responsibility. There it was again … integrity. I have used that value as a building block for my achievements and I attribute it to my success as an effective leader for Wallick & Volk to it. As a leader, you must demonstrate integrity in every aspect of your business, regardless of the industry. This sets the tone for how your employees will conduct themselves within the organization. It becomes the foundation of the culture of the company. I believe a leader doesn’t create the culture of a company; a leader creates an opportunity for the culture to be created by the sum of its parts. The people create the culture. By bringing the people together, the culture creates itself. That being said, as a leader, you must look to hire people with integrity that will uphold the standards that have been set by the organization as a whole and build upon the foundation you’ve created. It comes down to the people in the organization working together for the common goal of the company, which obviously is different in every firm. I think Richard Branson says it best: “If you look after your staff, they’ll look after your customers. It’s that simple.” Maybe it is that simple after all. Michael Groff is president and chief executive officer of Wallick & Volk. He may be reached by phone at (307) 771 8397 or visit WVMB.com.
“It is important that once you find a great leader and have them within your organization, that you keep challenging them to take their area of responsibility to the next level.”
Experience and Perseverance: The Pillars of a Great Leader By Jeffrey Tesch
Age is just a number
Personality counts First and foremost, a good leader must have the ability to listen not just dictate. A good leader values feedback from employees because he/she knows that they may not have all of the answers. It is also important that a good leader has vision and plans for the future. There is a major difference between someone that is able to react to a situation versus someone that already has a plan in place should that situation occur. Once that plan is in place, a good leader can set goals and will review with their team on a consistent basis to see how those goals are being met and what they mean in the grand scheme of things. Finally, don’t be mean. In all seriousness, a good leader knows that although they are in a position of power, it does not give him/her the right to treat employees like dirt. People are much more receptive to a leader that treats them with respect and values their opinion.
Hold the ones you love The power of attraction Attracting leaders and great talent in general to an organization is all about creating a dynamic workplace that fosters selfempowerment at every level. No one wants to work for a company where they will be micromanaged. You want to give employees who are
It is important that once you find a great leader and have them within your organization, that you keep challenging them to take their area of responsibility to the next level. Once there is any sort of complacency, thinking that their department can’t get any better, a good leader typically starts
Fish where there is fish At my company, we always try to promote from within when we can. Oftentimes, it is better to invest in employees that exhibit great potential because they can develop the skills to become leaders versus trying to pick a leader out of a crowd. Many of the respected managers and leaders at my firm started as lower level associates. It is my belief that leaders will always present themselves through their hard work and their drive to make a difference in an organization without being asked.
Jeffrey Tesch is managing director of RCN Capital LLC, a national, direct private lender. He is responsible for the day-to-day operations of RCN, including sales growth initiatives, underwriting review with compliance oversight and leadership of senior level strategic planning. He may be reached by e-mail at Info@RCNCapital.com.
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While age is often viewed as a major factor of whether someone will be a good leader or not, it does not always translate into an optimum level of experience. As someone, who at a young age managed employees that were older than me, you can be young and a good leader it really depends on how you handle things. It is important as a leader at any age to set clear goals and establish expectations when figuring out how to meet those goals. You can be a manager with decades of experience and be a terrible leader because you don’t properly communicate with your team or have a set plan in place.
taking on a leadership role the ability to set goals for their area of responsibility and figure out how to achieve those goals with their team. When you dictate how someone is going to handle their team you eliminate much of their ability to display the traits that make them a successful leader. Leaders want to be part of an organization where they can apply their experience and pass that knowledge on to others.
Internal promotion is highly effective because these individuals become invested in the company and as they progress through the ranks, they are groomed for a future leadership role. In essence, leadership is a skill that can be learned. It comes naturally to those who work hard and persevere, but it can also be taught to individuals who are dedicated and determined to get the job done. I believe in grooming our future leaders from within and setting them on a path for future success.
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Let’s be clear: Leaders are not born. They’re made, and made through hard work, dedication and determination. Individuals need training and experience to become a leader; it is not something that is inherently known. In my experience, through hard work, an individual will make their own way into a position where they are able to test the waters and start working with teams. This is the catalyst where prospective leaders are either able to develop their skills, learn what it takes to be successful in a leadership role and work their way up to larger roles. Or, prospective leaders realize that this may not be the best path for them. Many people set out with the idea that being a leader is easy only to fail because they don’t understand that it takes more than a certain mentality to lead others.
to feel like they don’t have to strive to achieve new accomplishments. Good leaders like to be challenged because it allows them to grow and develop their skills. If a leader hits a plateau at a company, it typically leads them to look elsewhere.
“When I think about who I want to be as a leader, it is a combination of individuals who have made an impact on my life because of their leadership.”
Challenging the Status Quo: How Society’s Definition of Leadership Is Missing the Mark By Brad Herbert When many people are asked to think of a leader who inspires them—or who they aspire to emulate—they are frequently drawn to those whose leadership has elevated them to a certain level of celebrity.
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Renowned political and world leaders, respected religious and spiritual leaders, CEOs and business moguls are all among the esteemed and oft-quoted leaders— and rightly so. There are countless exam-
ples of individuals with profound intellect, wisdom, strength and grit whose stories of struggle, sacrifice and success are widely broadcast. But what I find more meaningful when I consider what has shaped my own definition of great leadership, are the examples of the leaders I have been fortunate to encounter in my personal life, whose stories are not well-known.
Defining leadership: Variations and commonalities When I think about who I want to be as a leader, it is a combination of individuals who have made an impact on my life because of their leadership. The list is long and includes parents, grandparents, bosses, mentors, coaches, professors and teachers, and they all lead differently than you might expect. Some are introverted and soft-spoken, but when they talk everyone listens. In contrast, some are more extroverted. They can command a room with a grand presence you cannot help but admire. Then there are those whose leadership qualities manifest in more subtle ways. They all have different leadership styles, none necessarily better or worse than the others, but all are effective. It is essential for our society to have leaders with varying leadership styles. That being said, there are certain qualities that many good leaders share. I have found that natural leaders are terrified of silence in a way. They are often the first to speak up when everyone else is struggling to come up with an answer. However, the best leaders also listen before they speak. They have a way of recognizing the unique strengths of their teams and then utilizing them so each individual feels empowered and valued. Yet they do not take credit for the job that their team has done, nor do they abandon them when their work is called into question. They motivate through encouragement, positive reinforcement and coaching, rather than through fear. Good leaders also lead by example and know when it is necessary to take a back seat.
Leading in the business world In my opinion, the quality that separates good leaders from truly great leaders is a
desire to do things the right way, the honest way and with integrity. This is particularly true in the competitive world of business. Our society tends to attribute financial success to strong leadership, or to use financial success as a barometer for leadership quality. But there are countless examples that demonstrate that this is not always an accurate measurement. When it comes to marketing in particular, the best leaders are creative and innovative, ready to try something new and unwilling to settle for the status quo. They are also able to recognize and acknowledge when a strategy isn’t working and have the courage to change course when appropriate. This ability to be proactive, adapt and problem-solve is essential for leaders in all disciplines. Natural leaders do not simply talk about problems. Rather, they are the first to present solutions and have a way of motivating others to jump on board to implement them. Really, that’s one of the secrets to success—if you can call it a secret—to identify problems, come up with the best, most innovative solutions and then execute them quickly and effectively.
Natural leadership vs. learned leadership While many leadership qualities are innate, I believe the notion that leaders are born is only true to a point. Certainly natural leaders have a way of bubbling to the surface and certain traits like a willingness to learn and emotional intelligence are inborn. The argument could also be made that leaders self-select to a certain extent. However, some leadership skills can be taught and developed through experience. I think the key here is that everyone has unique, intrinsic talents and strengths and they are all different. What can be taught is how to lead effectively with what you’ve been given— how to best utilize those innate qualities. Our society tends to focus primarily on leadership as it relates to official recognition and status, often leading us to believe that if you’re not a leader, you haven’t “made it.” This is simply not true. Equally as important as the gift of inherent leadership traits is the gift of the ability to be led. After all, the highest performing teams are diverse in terms of
their collective abilities and strengths. Therefore, it is important for those in a more official leadership capacity to recognize the unique strengths of each person they lead, and work to nurture and develop those qualities for the benefit of the group.
Recognizing leadership potential The practice of seeking out and nurturing leaders is directly applicable to recruiting new talent to an organization. One way to identify natural leaders from a pool of applicants is to look at what extracurricular activities they are involved in, like volunteer work, serving on a board, etc. Look for instances in which they have chosen to take the reins, whether inside or outside of work, without being forced to. True leaders don’t need to be told what to do. They take the initiative and find solutions.
When seeking out leaders, recruiters and managers need to be careful not to overlook or discredit younger leaders. While there is no substitute for experience, some of those intangible, innate leadership qualities can manifest early in life. You don’t have to look far to see great leaders emerging from the Millennial generation. A number of successful companies are being started and driven by young entrepreneurs whose fresh ideas and leadership styles are changing and disrupting the market. It would be foolish to underestimate their influence and promise. Skilled leaders understand that they have a unique opportunity to mentor young leaders and give them the guidance and support they need to become the great leaders of tomorrow.
Engaging and retaining quality leaders Identifying leaders of all ages to add to
your organization is only half the battle. They have to want to join you and the key to this is rather simple. Successful people want to be associated with successful companies. Leaders are attracted to companies on the move, companies where they will naturally be a good fit. Much of this perception starts from the top down, with the company’s existing leadership structure. Ultimately, the best thing an organization can do to attract great leaders is to commit as a whole to doing business the right way, with honesty and integrity. Once you’ve attracted great leaders to your organization, the challenge becomes retaining them. It will not take long for competitors to realize the value and potential of your best leaders and you can bet they will try to win them over. But your leaders will be less likely to jump ship if they feel truly valued, that their contributions make a difference. Part of that expression of value comes in
the form of trusting them to do their job. Fortunately great leaders can be trusted to perform and will often exceed expectations. Ensuring their voice is heard and giving them a seat at the table when it comes to decision-making can also have an impact on their job satisfaction. Competitive compensation, while important, is often farther down the list compared to quality of life at work. Give your leaders the quality of life they are seeking and deserve, and you and your company will reap the benefits. Brad Herbert is the head of the Marketing Team at Castle & Cooke Mortgage LLC, and is responsible for leading and implementing a comprehensive marketing strategy for all Castle & Cooke Mortgage digital, social, PR, advertising and lead generation initiatives. He may be reached by phone at (801) 461-7105 or e-mail BHerbert@CastleCookeMortgage.com.
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“The most powerful leaders seek clarity through taking time for themselves. When we take time to nourish ourselves, we have greater capacity to see the big picture, allowing us to make wiser decisions and plan more effectively.”
Leading With Clarity By Kerry W. Elam Leading with a clear intention sets the positive, motivating tone of a successful organization. Inherently, we are more able to align with leaders that articulate the why of the organizational path. This article explores how great leaders consistently communicate clarity by setting intentions, taking time for self-reflection, and tapping into intuition.
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Create clarity
clarity. Here are some tips for leaders (and team members!): l Indulge in natural Vitamin D by doing a physical activity outdoors. l Take time regularly for quiet meditation or mindfulness practices. “Meditation is not a way of making your mind quiet. It’s a way of entering into the quiet that’s already there–buried under the 50,000 thoughts the average person thinks every day.” (Deepak Chopra). l Schedule a play date with family or friends. Encourage your team to do the same. l Breathe deeply when feeling stress or confusion. l Smile. l Stretch to release the tension we hold in our muscles. l Listen to music daily. l Eat healthy foods. l Drink plenty of water. l Get enough rest. Skimping on sleep and “down time” is not a badge of honor. l Delegate and empower your team.
The most powerful leaders seek clarity through taking time for themselves. When we take time to nourish ourselves, we have greater capacity to see the big picture, allowing us to make wiser decisions and plan more effectively. With a culture that thrives on multi-tasking, our world is a busy place. There are more prescription drugs than ever being utilized to deal with anxiety, stress, and depression. “When the well’s dry, we know the worth of water,” said a wise Benjamin Franklin. If we are scurrying from task to task and appointment to appointment, our minds will be cluttered, leaving little space for clear leadership. As a leader of Actualize Set intentions Consulting, I am often asked how I have Merriam-Webster Dictionary defines intensuch a high capacity and still maintain tion as “the thing that you plan to do or
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achieve: an aim or purpose.” In any facet of life, intentions are relevant to keep us focused. In business, intention setting not only facilitates communication among teams, but also aids us in clarifying the why behind our strategy. When we take time to analyze the intention, we can hone in on a clearer vision enabling us to explain to others and obtain organizational buy-in and support. Thomas Jefferson said, “Nothing was or is farther from my intentions, than to enlist myself as the champion of a fixed opinion, where I have only expressed doubt.” Some guidance regarding intentions is listed below: l Seek to understand the various facets of intentions, by first defining the intention, and then implementing it fully through your thoughts and actions. l Determine how others view your intentions. Do they want to work with you, ask you for advice? If yes, you can conclude others value your guidance. However, if you are leading with little interaction, you may want to re-evaluate how you are actually impacting others. l Lead intentionally and your teams, organizations, and businesses will prosper in ways unimagined. In his book, The Seat of the Soul, Gary Zukav stated, “The more aware of your intentions and your experiences you become, the more you will be able to connect the two, and the more you will be able to create the experiences of your life consciously. This is the development of mastery. It is the creation of authentic power.”
Practice self-reflection Another key ritual of a great leader is taking time for self-reflection. As Sigmund Freud said, “Being extremely honest with oneself is a good exercise.” If we take time to honestly look at ourselves and our triggers, we can continue to grow. Life is a learning process and we strengthen our development by looking at how we show up. Defensiveness is a powerful clue to our areas of needed growth. The next time you find yourself reacting, take a moment to analyze the why. Most often there is a truth to uncover. For instance, your staff says you are a micromanager and every time you
are made aware, you feel your temperature rising and your inner voice says, “I am not a micro-manager!” The more-seasoned leaders see this as an opportunity to improve, and take the necessary steps to enhance their behavior to empower their team. An important best practice is to incorporate self-reflection across the organization. At my firm, we recently added self-reflection questions to our bi-annual review process. We used the questions from the book, HR Transformation: 1. What are some of the common challenges I run into when trying to accomplish my work? 2. How do people generally respond to me? 3. What work do I find easy, energizing and enjoyable? 4. What work do I get excited about doing? What work do I avoid by procrastinating, avoiding or postponing? 5. What do I need to do less of and what do I need to do more of to add greater value to my internal and external customers? 6. Who are the people I trust the most? Am I willing to ask them for suggestions for how I can improve? 7. How do I respond when I receive feedback? Am I able to process the information without becoming defensive?
Follow intuition Lastly, listen to your intuition. What is your gut telling you? Yes, this in an effective strategy even in the business world! Bill Gates attributed much of his success with Microsoft to intuition, saying that to win big, “Often you have to rely on intuition.” Albert Einstein said, “The only real valuable thing is intuition,” and came up with his Theory of Relativity via an intuitive dream. Remember though, that in order to tap into our intuition, we have to clear the static, intentionally tuning into our inner guidance. With clarity, intention setting, self-reflection, and following our inner voice, we can effectively lead with the strong and stable support of our organizations. Kerry W. Elam is managing director of operations and human resources with Actualize Consulting. She may be reached by phone at (703) 868-1506, e-mail kelam@actualizeconsulting.com or visit ActualizeConsulting.com.
“Great leaders typically have five traits in common: Decisiveness, Honesty, Passion, Responsiveness and Empathy.”
Five Traits of Effective Leaders By Lisa Coleman
Decisiveness
Passion Being passionate about what you do and wanting to do an excellent job makes a significant impact on being an effective leader. When you show that you’re passionate about your work, others can sense that energy and enthusiasm and will feed off of that themselves. Seeing how passionate a leader is about their work can help employees realize that they are part of something bigger. This type of realization can help people want to work harder and be proud of their contribution to the overall project. Another outcome of being passionate is the environment you personally create. You create a space that people want to be around with a desire for success at the forefront. Being passionate can help leaders keep a clear head with their eyes on the prize instead of getting distracted by other irrelevant requests.
Responsiveness Honesty Having open and honest communication is important in order to getting things done efficiently. People look to leaders
Responding quickly to situations and questions makes a leader seem as if he or she genuinely cares about the overall outcome of the product. Being respon-
Empathy Having empathy is an admirable quality among respected leaders. Leaders that have empathy understand others emotions and take it one step further to relate to them. When someone approaches a leader with a problem, asking the right questions to try to see where the other person is coming from or why they feel a certain way showcases empathy. This also shows that the leader genuinely cares about their coworkers and others. Being nonjudgmental and a good listener are important skills to have as a leader. Having a down to earth personality and
The likeability factor Ultimately what having each of these traits does is increase a person’s likability. Naturally, how people view you changes the way they interact with you. If a leader possesses positive qualities such as decisiveness, honesty, passion, responsiveness, and empathy, they will not only be well liked among their peers, they will likely be highly respected by others in the industry and known for being a good leader. A leader can display traits that aren’t listed here and still get the job done, but if being an influential leader that has a positive effect on the company and those around you is your goal, working on developing these traits should become a priority. A leader that works hard, is transparent, truly cares about the work that they produce, and wants not only themselves, but others to succeed as well is a leader worth being. Lisa Coleman is the communications and public relations coordinator for Norcom Mortgage. She graduated from DePaul University in 2015 with a BA degree in communication and media. Lisa joined Norcom Mortgage shortly after graduation, handling social media, copywriting, blogging and public relations responsibilities for the company.
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The ability to make important decisions intelligently and quickly is what sets leaders apart from others. Many people don’t enjoy making decisions out of fear of making the wrong one, laziness, or simply frustration with not knowing enough information to make the correct choice. Being decisive gives people control over the situation. Great leaders make the decisions that would be best for the most people involved by gathering the facts, analyzing the information, considering any possible alternatives, and deciding what to do quickly and effectively. Being decisive is important, but not as important as following through with the decisions that are made. Consistently sticking to your decisions helps to develop trust between others. When people know that you’re going to do what you say you’re going to do, you develop trust within your department and company as a whole.
for guidance on what they should do or how they should proceed with their own work. If a leader isn’t honest and upfront, it can lead to bigger problems, time wasted, and eventually a lack of respect may occur between the individuals. Honesty does more than help build trust, it also helps to develop credibility. Developing credibility, being transparent, and becoming reputable in your business and industry can show that you’re an ethical leader that does the right thing for the right reasons. Honesty also helps you to become a good example for others in your office, family and community. People that look up to you will follow your example. If you’re looking to form an honest and positive environment in your department or company, with individuals you can trust, it’s important that you set this example yourself.
being understanding to others is key to being more approachable.
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Many people have experienced a variety of leaders in their lifetime. When you think back about the different leaders in your life, which ones stand out to you? What is it about them stands out to you? Perhaps they have some qualities that make them a great, effective leader that makes them stand apart from the rest. An effective leader can be considered one that gets his or her work done, while inspiring and helping others to do the best work that they can do. They can be counted on and trusted to communicate well and make the decisions that will benefit the company and individuals involved. Great leaders typically have five traits in common: Decisiveness, Honesty, Passion, Responsiveness and Empathy.
sive also helps leaders be more approachable to those around them. Having an open door policy is a way to keep communication flowing. By having this policy, you welcome questions and hearing out other people’s ideas, which not only makes people feel appreciated, but you may get to develop a better product because of it. Welcoming feedback and being able to communicate respectfully to others in the office is important for creating an efficient environment. Good leaders are able to communicate to people with all ranges of knowledge about the topic at hand. For instance, they are able to explain a complicated concept or idea to someone with no knowledge of the subject as well as explain it to someone with an extensive background.
“… When evaluating an organization’s leadership development potential, loan originators must consider the organization’s vision for technology adoption, the origination technology that currently exists and how the organization has incorporated technology into other facets of the company.”
Like Attracts Like: How Technology Translates Into Leadership Opportunities for LOs By Jeff Bode “Leadership is the capacity to transform vision into reality.”—Warren G. Bennis, Founding Chairman, Leadership Institute at the University of Southern California It’s no secret that top loan originators are
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in high demand, and the market for recruiting these top producers is extremely competitive, with lenders jockeying to provide the most attractive inducements to convince loan originators to jump ship.
However, anyone can put together a decent compensation and benefits package, and while those things are certainly relevant to a loan originator’s decision on where to ply their trade, there are other factors that must be taken into account. For loan originators seeking to establish themselves as leaders in this industry, it is critical to consider the vision of your current organization and determine if that division matches your personal goals. In today’s mortgage lending environment, those organizations that have embraced technology as a means to reduce costs, improve loan quality, maintain compliance and provide a competitive differentiator are the kinds of organizations that are going to naturally breed leaders. As the Law of Attraction states, “Like attracts like.” Therefore, when evaluating an organization’s leadership development potential, loan originators must consider the organization’s vision for technology adoption, the origination technology that currently exists and how the organization has incorporated technology into other facets of the company.
An overall vision for technology The mortgage industry’s vision of a fully electronic process from origination through note delivery is rapidly transforming into reality, thanks to recent advances in technology. Forward-thinking mortgage lenders have already begun to adopt these new systems in order to reduce both the cost and the time to close, meet regulatory requirements and provide borrowers with unparalleled customer service. “e-Whatever” is the direction that the mortgage industry is heading towards, and a lender’s attitude towards these initiatives can be quite telling in terms of its overall view of technology. An organization that rejects these initiatives immediately out of hand is probably short-sighted in other areas of their business and, as such, may not be as nurturing of leadership in its loan originator ranks. On the opposite end of the spectrum, an over-reliance on technology can indicate a lack of faith in the ability of human resources to get the job done right. This kind of environment can be equally as stifling for loan originators with leadership aspirations.
The sweet spot, as they say, is an organization that values ALL of its resources— both people and technology—and views technology a tool to enhance the efficacy of its workforce. When evaluating an organization’s overall view of technology, here are some key questions to consider: l What strides has this organization made in moving towards a fully electronic process? l How often do executives talk about their vision for technology within the organization? l Is technology mentioned as part of the company’s mission and/or values? l Has technology been made a priority in terms of budget? l What kind of training does the organization provide on its technology?
Origination technology In addition to overall technology philosophy, loan originators should also consider the line-of-business technology already in use. At the very least, most lenders will have a loan origination system (LOS) in place. The configuration of this system can provide insight into how well the lender has incorporated technology into the organization and tailored technology to fit its unique processes. Very rarely does an out-of-the-box LOS configuration meet 100 percent of a lender’s needs so usually, some level of customization is required. Lenders that have not taken the time and expense to customize their LOS configurations to harness its total potential are unlikely to do the same in regards to employees. Furthermore, a lender may have many other systems in place as well for underwriting, quality control/risk management, lead generation, compliance, document preparation/management and so on. The ability of these systems to work cohesively with each other is a direct reflection of the organization’s ability to see the bigger picture and organize itself accordingly. Lenders with discordant systems are often unorganized in general, and if management’s focus is directed towards chaos management, opportunities for growth and leadership are going to be few and far between. Tech-savvy lenders, on the other hand, will have spent a great deal of time and money creating an electronic origination
ecosystem in which all systems work in concert to create a nearly seamless flow of information, documents and data. When there is harmony in an organization’s operations, executives have the time and energy to devote to employee satisfaction and development. Consider the following regarding a lender’s current technology usage: l What systems is the lender currently using? l How much of the origination process is being conducted manually and why? l How much customization has the lender done with its current configuration? l How well do the lender’s line-of-business systems work with each other?
Ancillary technology No matter the industry, there are key functions that are universal to all businesses— finance/accounting, marketing, etc. For loan originators, marketing is a huge area of
concern, as this directly affects the ability to bring in new business. Digital forms of communication (e-mail, Web, social media, etc.) has become a far more prevent and preferred means of marketing to consumers. If a lender cannot support its loan originators’ digital marketing efforts, that speaks volumes about that lender’s ability and desire to support its workforce in general. Additionally, the kind of access to approved marketing materials a lender provides to its loan originators can be indicative as well. If a lender has made a significant investment in line-of-business technology but has to ship hard copies of marketing materials to its loan originators, there is something amiss. That kind of disconnect speaks to larger gaps in the lender’s overall operations and undermines confidence in the lender’s ability to adequately support growth as a whole.
Again, cohesion in a lender’s technology strategy, even in non-line-of-business areas, is a key indicator of the lender’s overall approach to it business. Lenders that ensure their loan originators are given every tool possible to succeed are going to be far more likely to nurture and support leadership growth within the organization. Loan originators should consider the following in regards to a lender’s ancillary technology efforts: l Does the lender support digital marketing alongside more traditional methods? l What kind of access does the lender provide to its approved marketing materials? l Does the lender incorporate technology into its approved marketing messages?
tion between leadership and vision. Visionary organizations are far more likely to support the professional development and growth of employees. The mortgage industry’s future is one that incorporates e-Signature, e-Closing, eNote and e-Vault technology to transform the mortgage origination process, and the forward-thinking mortgage lender has not only accepted this change in direction, but embraced it. Thus, for loan originators seeking to develop within their profession and grow into leadership roles, they must consider their current organization’s attitude towards technology and align themselves with a lender that prepared for the future.
Jeff Bode is owner and chief executive officer of Addison, Texas-based lender Mid America As the opening quote from Warren Mortgage Inc. He can be reached by e-mail Bennis illustrates, there is a direct correla- at Jeff.Bode@MidAmericaMortgage.com. 79
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“When considering the characteristics that make a good leader, another important item to keep in mind is that good leaders are not in their roles to simply manage employees, but to groom those individuals to become better in their own roles.”
Identifying Extraordinary Leaders By Kerry Wirth
The winning qualities of an exceptional leader As an executive in the mortgage industry, I am often asked how I approach the process of finding and retaining outstanding leaders within my organization. The answer is a complex one, because there is no surefire “One-SizeFits-All” approach to developing a talented leadership team within a compa-
ny. It’s an ever-evolving process that involves many changes along the way. That being said, if you are a leader in the mortgage lending industry who has the responsibility of finding exceptional leaders for your organization, one of the most basic questions you should ask yourself is, “Which leadership qualities or characteristics are most important to my organization?”
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These may include some of the following: l Superior communication skills l Honesty and integrity l Confidence l The ability to inspire and motivate others l Adaptability to change l A sense of humor l The ability to be firm yet fair l Can effectively turn a negative situation into a positive one l Shows empathy l Is passionate and driven l Possesses a strong sense of accomplishment l Commitment to a desire to succeed l Intuition l Patient, yet maintains a sense of urgency l A well-rounded individual l Ability to think outside of the box— strong problem-solving abilities l A good role model l Holds team member and their peers accountable l Can make effective decisions Of course, this is simply a starting point. Once you consider the qualities listed above, jot down a few of additional characteristics that you believe are important in a leader. Another essential question to consider is how these qualities fit with your company’s culture. Workplace culture is key to a business’s success and maintaining a healthy team environment. For instance, someone may be an exceptional leader—with all the “right” qualities—but if he or she does not fit into your company’s culture, it is unlikely that a mutually beneficial relationship would exist between this leader and your company. When considering the characteristics that make a good leader, another important item to keep in mind is that good leaders are not in their roles to simply manage employees, but to groom those individuals to become better in their own roles. In other words, managing the day-to-day operations is only a small part of an effective leader’s position. They must also encourage and teach their employees to excel and strive for excellence on a daily basis. As such, when you are recruiting for leaders within your organization, you may want to focus on this topic early in your discussions with the potential leaders, in order to discern if they have the ability and
the excitement to motivate their direct reports. I also believe it’s important to consider the leadership qualities that are relevant to the mortgage lending industry, in particular. For instance, leaders in the mortgage industry must display strong customer services levels with both internal and external customers. Strong work ethic and a sense of team building are also valued in the mortgage industry. Moreover, a sales-focused outlook and the ability to adapt easily are essential; as we all know, the mortgage industry is ever-changing, and you must be able to learn new regulations and adapt your procedures accordingly.
Finding “diamonds in the rough” After you have identified the leadership qualities that are most important to your company and that fit well with your organization’s culture, you will be ready to start the process of seeking out those who match your idea of an exceptional leader. Attracting and retaining top leaders certainly involves a great deal of focus and strategy. At my firm, we have a hardworking Talent Acquisition Department that utilizes a variety of resources to attract highquality candidates. We also have an extensive vetting process that helps us eliminate candidates who may not be a good fit. Above all, we ensure that each new leadership hire has a work ethic and personality that align with our culture. As your organization begins the recruiting process, remember that a balance between seeking outside individuals and promoting those who are already within the company is important. Recruiting and attracting leaders from outside your organization will help create diversity amongst your leadership team. Never underestimate the power of opening yourself up to fresh ideas, new business strategies, and outside expertise. More than likely, these will strengthen your current leadership team. On the other hand, remember that exceptional leaders don’t always come from outside the organization. In fact, some of your best leaders may be already sitting in the desks next to you; they simply haven’t had the opportunity to take on a leadership role yet.
Promoting individuals within your organization certainly has its benefits. For instance, it is much easier to identify leadership traits and qualities when you are familiar with the individual already. Take a look around your office. Which of your employees is regularly outperforming other individuals? Which of your employees routinely takes the initiative to solve problems quickly and effectively? If you find yourself focusing on one or two people who fit into this category, these may be prime candidates for a leadership position. Other benefits of promoting current employees include: l It’s easier to groom an individual who already understands the processes and procedures, business strategies, and goals of the company. l Providing employees with a goal and career path will improve your company’s employee retention. l You already know that the employee
meshes well with the company culture. qualities align with your company’s l It shows your employees that you culture is even more critical. value them and their success with the l The aspects of a job function—such as company. day-to-day processes and procedures— can by learned by anyone who is a great Take these ideas into consideration academic performer. But an individwhen determining who may be the best fit ual’s character, coaching abilities, and for a leadership position within your organoverall mindset cannot be taught. ization. Again, there is no “correct� answer l Leadership skills are always evolving. If as to whether an outside candidate or an you expect to hire effective leaders, inside candidate will be the best fit. You you must also have high standards for simply need to consider the options, conyour own leadership development. sult with other respected leaders in your There is always room for continual company, and make informed decisions. growth and improvement.
Important takeaways As you search for effective leaders to drive your company’s success, consider these few parting words of insight: l Think outside the box when hiring individuals for leadership roles. Skills, experience, and education are important; however, finding someone whose
Also, remember that critical thinking, as well as the ability to listen to and understand your employees, is very significant. The overall role of a leader—regardless of whether that leader is yourself or someone who you hire—is to groom and motivate employees to become better. When one of your employees becomes so skilled, talent-
ed, and motivated that you have little need to encourage him or her further, that’s when you know you have been a successful leader! It’s also an indicator that this individual is ready for a leadership role. As you continue to work on your own leadership skills, you will be better equipped to find effective and exceptional leaders for your company. Remember: It’s a process of continuous growth and change, but it’s also extremely rewarding. As senior vice president of Loan Operations at Waterstone Mortgage Corporation, Kerry Wirth manages the Loan Operations staff, including the Disclosure Desk, Processing, Underwriting, Closing and Loan Delivery Departments. In her role, Wirth administers and manages operational processes and procedures, develops and implements strategic operations initiatives, and provides guidance and training for her respective departments. 81
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“Someone who is able to build a productive team certainly has some of the skills needed for leadership, but perhaps only one or two. The leader that’s going to build a region, or a division for you, has to have it all.”
How Will You Know When You Find a Leader? By Casey Fleming
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Every company wants to hire leaders, but in my opinion, most companies think too small when they pursue potential candidates. While every company needs to bring tomorrow’s leaders in today if they are going to thrive in the long term, most invariably pursue those who will give them a significant, but temporary boost in their production. By doing this, they miss out on the leaders who would give them longer-term, more effective contributions. What do I mean? Almost every company pursues producing teams in order to boost production as quickly as possible. There’s nothing wrong with that, because the fact that someone has been able to assemble a productive team means they are a good leader, right? Not necessarily. Someone who is able to build a productive team certainly has some of the skills needed for leadership, but perhaps only one or two. The leader that’s going to build a region, or a division for you, has to have it all. One loan officer, no matter how productive, can ever produce as much as an entire region of competent, moderately-pro-
ducing journeyman-level mortgage professionals. What are the character traits that a true leader has, and how will you recognize them?
Competence It’s hard to become successful in this business without being very competent. Hard, but not impossible. We all know highly successful loan officers that are great at sales but still don’t know much about guidelines or how to analyze a client’s financial situation. Maybe he hires a great processor to worry about guidelines—there’s nothing wrong with that. Maybe as long as he knows how to sell certain loan products he figures he doesn’t need to worry that much about being a financial expert. There arguably is something wrong with that, but as long as he produces we let him slide. That loan officer will make you money, until another lender makes him a better offer. But he will never build more than a small team. The journeymen that will make up the core of your company want someone who is—above
all—thoroughly competent to look up to and learn from. Competence leaves evidence, and that will draw in the core that will make up the vast majority of your production. Above all, your leader is someone who can dissect a client’s circumstances and concerns, has a deep understanding of the financial ramifications of loan options, keeps up with changes in underwriting guidelines and regulations, and takes leadership roles in professional organizations to stay ahead of trends. How do you recognize this? Your interview questions should include asking your candidate to analyze a hypothetical client’s situation to see if he or she understands the long-term financial implications if their recommended solutions.
Work ethic Leaders are not the last one in the door in the morning or the first one out the door at night. Leaders show up early, use their time effectively, and work until their work is done. They are not clockdriven, but rather they finish their work no matter what it takes. Their team does the same, because they will always mirror their leader’s work ethic. Ask your candidates how they manager their calendar, and you’ll see if they are organized, focused and committed.
Drive rather than ambition
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Most companies want ambitious leaders. They want leaders who are hungry for financial success, because that will drive them to bring in the revenues they need to achieve their goals. That’s true, except what ambitious loan officers tend to want is to make more for themselves than ever before—everyone else is secondary. Leaders, on the other hand, know that their success comes from making others successful. They have a very high drive for accomplishment as a team, rather than financial success for themselves. They want to produce more revenue for the company and enable their team to make more than ever before. They want to do this by constantly
improving their own skills so they can be better at what they do for their clients, and they want that for their team as well, because they know serving clients well breeds success. They want to promote the company because they want to work for an outstanding organization that is recognized as a leader in the field, and they want their team to feel proud of being part of it. Essentially, leaders want to do everything they can to see the company and their team members become more successful, knowing that in doing so they too will achieve financial success far beyond what they can do themselves. It’s a fine, but important distinction. True leaders focus less on how much money they can make, and more on what they can accomplish and how good they can become, and by doing so, make more money for themselves too. Ask your candidates what drives them. What is their why? In their answers, look for clues that their primary motivation is making more money for themselves. Avoid those candidates. Leaders want to become successful by helping others.
Ethics The first question companies ask me when interviewing is “How many people will follow you if we hire you?” You might get a team this way, but they’ll be gone as soon as you turn around. A true leader puts ethics above all else—even getting the juicy position or making more loans. Ethical leaders don’t steal their company’s employees, nor do they raid their company’s data base of clients. It is especially true once your leader elevates to a position where a lot of folks look up to him or her. The team will mirror the leader’s values. A true leader— the ones that build highly productive, competent and ethical teams—are the ones who put ethics first above all else, even producing revenue. If you want true leaders in your company, throw out that first question you always ask.
Support for team Leaders care about how well their team does. They support the team in getting
the education they need to become highly competent. They coach their team how to advance in their own careers and how to earn more by building a sustainable practice. The team will be more cohesive, more motivated and more productive if they feel totally supported by their leader. Rather than ask candidates how many people will follow him, ask him how many of his previous team member have gone on to build teams of their own, and how they are doing.
C2 Financial Corporation and was president of Silicon Valley Chapter of the California Association of Mortgage
Professionals (CAMP) from 2012-2014. Casey authored the book, The Loan Guide: How to Get the Best Possible Mortgage
(available on Amazon). He may be reached by phone at (408) 348-3442 or email LoanGuide@sbcglobal.net.
Inspirational
Casey Fleming is a mortgage advisor with
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Conclusion True success is built one solid team member at a time. Hiring high-producing teams does boost revenues immediately, at least for a while. But hire a leader, and you’ll build much larger and more productive organizations with significantly less risk, and dramatically improve your company’s reputation at the same time.
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Finally, for the most elusive quality of all, the leader must inspire her team. The words “inspire” and “spiritual” have the same root. People may work for a company, but they will die for a cause. When the leader inspires their team to understand the human impact of their work, they will be more attentive and present to their task. They will care about the impact they have on clients. When the leader inspires their team to become the best they can be, they will educate themselves and build whatever skills they need to make them better at building their practice. When the leader inspires their team to understand they are all part of the same team working for the same cause, they will be more cohesive and more supportive of each other as they strive constantly to achieve the organization’s goals. To determine if a candidate has what it takes to inspire their team, ask him what inspires them. Really make him go into detail. Ask why that inspires him, and how. You will learn more about that candidate in three minutes than anything else you can do. Then, ask him for examples of his previous team members who exploded their own practice. Ask what made them do so well so quickly, and look for his ability to understand what motivated them.
“When leaders fail to cultivate important core traits, our own bad habits trickle down to those we lead. Employees are always watching what their leaders do and imitate them with uncanny, sometimes annoying, perfection.”
Follow the Right Leaders to Become One Yourself By Wes Miller
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Just as a sales funnel can dry up when client relationships aren’t maintained, so too can our leadership abilities. When leaders fail to cultivate important core traits, our own bad habits trickle down to those we lead. Employees are always watching what their leaders do and imitate them with uncanny, sometimes annoying, perfection. To ensure this trickle-down effect reflects positive traits, it is important for leaders to understand who is passing down those traits to them.
influences your life, and subsequently, how you influence those you lead, is the first step to long-term success at the top. In my own experience, I have tried to be a student of leaders I admire in the context of the obstacles I’ve encountered while building a startup. I started my company in 2011 with an idea scribbled on a napkin. Turning this idea into reality has required commitment, confidence, capital, and a great team. Here’s what I’ve learned from other leaders:
Who’s leading you? Emmanuel James “Jim” Rohn, entrepreneur, author and motivational speaker, once said: “You are the average of the five people you spend the most time with.” If you want to grow your leadership skills, spend time with leaders you want to emulate. Otherwise, you may not develop the exact skills that will make you a better leader. The fact is … everyone is influenced by each other. Choosing who
1. Ethics trump all Do the right things for the right reasons. Many people get this half right. They do the right things, but for the wrong reasons, or they have good intentions, but execute poorly. If you want people to trust you and therefore follow you without fear, you need to do both. If I’d had the good intentions of staying the course through hard times, but didn’t have the skill to stick to my com-
You can’t be ready for what you don’t see coming.
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mitment, my idea would have stayed on a napkin.
and keep excitement and productivity levels high.
2. Lead by example Asking your team to do something you aren’t willing to do yourself is a recipe for resentment. Want your employees to be more aware of the dirty dishes in the company kitchen? Instead of establishing yet another policy where you have to monitor whether people clean up after themselves, set an example by washing some dishes yourself. It can have a powerful and humbling effect on those who report to you, and promotes awareness of surroundings and a problem-solving culture instead of a grousing, finger-pointing one. It requires confidence that who you are as a leader is not just based on what you do, but how you do it. Leading by example is particularly compelling because it makes you relatable. If and when you do ask people to keep the kitchen clean, it won’t be perceived as an accusation, but as a friendly reminder of their responsibilities.
4. Reflect As CEO of a technology startup, I’ve learned that the coder’s code, “Build, Measure, Learn” is also helpful as a leadership skill. This is reflection at its core. What have you learned about your team’s strengths? How could you better utilize them? What communication techniques have you tried and failed at in the past? How could you change these techniques to get a more positive result? Without looking back on what you’ve done to inform future development, you’d just repeat the same mistakes. Commit to carving out time to reflect. If done daily, trying to improve in some small way every day will become a habit.
3. Share the vision Forming a startup creates excitement because people can see themselves as trailblazers, doing what no one before them has done. The energy can be contagious and helpful in building morale, which in turn increases productivity. But without a clear vision to go along with this excitement, people will start to feel lost, like coming down from a sugar high without eating something substantial to mitigate its effects. They’ll start to think, “What’s the point of all this, again?” It’s easy for leaders to forget that not all employees attend high-level strategy meetings or are privy to the same developments or updates that could keep them engaged. Scheduling regular meetings to share your vision and update team members on company happenings will help them focus on what you are ultimately trying to achieve,
5. Be positive The glass may be less than half full. It may even be leaking. But be cautious about speaking negatively. Both positivity and negativity are contagious and just as positivity yields productivity, negativity will kill it. This isn’t to say, ignore damaging situations and only talk about rainbows. The fact remains that the glass has a leak and needs to be fixed. But instead of dwelling on the despair or frustration the negative situation creates, focus on coming up with a solution. This goes back to Leading by Example—cultivating a problemsolving culture instead of a complaining one. Staying positive throughout the situation ensures it will be fixed. Your viewpoint, or attitude, will affect your productivity. It is important to adjust it accordingly. 6. Ability to pivot Plans don’t always go as expected. Sometimes you need to solve problems quickly and change direction on an as-needed basis. This can be difficult, because you also need to know when to stay the course when it’s not popular. You need to have the ability to pivot, and the discernment to know when not to. It’s easy to chase
shiny objects, so the challenge is in deciphering which opportunities to pursue. 7. Focus on strengths When you are aware of your personal strengths, that knowledge should inform how you hire in order to compliment said strengths. Once you have brought in the right people, this skill extends to being aware of who your team is and knowing what they do best. Doing so will help you scale correctly, continually bringing in the right people for the right roles as your company grows. 8. Trust your instincts Doing something new often means blazing your own trail. As a leader you have information from lots of sources that not everyone else has. Sometimes you have to make decisions that only you can, and that requires confidence in your instincts.
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service and training support staff. He may be reached by e-mail at Wes.Miller@ATSSecured.com.
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These are the leadership skills I have learned, from both my mentors and from building a company from the ground up. By no means am I a perfect leader. I am still developing these skills on a daily basis. But I have learned what will help me maintain my success and continue to improve. I hope my experience can help you on your own leadership journey.
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10. Responsibility Leaders who take on blame and give out praise will go a lot further than those who take ownership of success and blame others when things go wrong. It can be difficult, but when your team realizes they will be given praise when praise is due, and won’t be blamed for honest mistakes, their loyalty and admiration will grow exponentially.
and marketing both core and ancillary financial products. Wes has been recognized for his success in sales, customer
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9. Communication Communication is a challenge in every business. Everyone has a different way of hearing and understanding what is said. What you might mean as a compliment, some might interpret as a slight. But if you know the strengths of the team member, you can determine how best to communicate with them.
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“Why would anyone really want to be a leader? That is the guy walking point in a war who always gets shot first. It is so much easier to be a follower.”
Take Me to Your Liter By Eric Weinstein
I love that cartoon where an alien walks into a 7-11 and says, “Take me to your Liter.” Okay, that has nothing to do with being a leader, but it’s funny and it sounds like “leader.” Why would anyone really want to be a leader? That is the guy walking point in a war who always gets shot first. It is so much easier to be a follower. I
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know, given the choice, I would much rather be a follower. It doesn’t require the brainpower, creativity or problemsolving troubles a leader faces. Still, there are times you have to be a leader, like it or not. Or, at least, I do. Were you ever been given a group project in school? Isn’t always the way that nothing ever gets done until one person steps up and pretty much does
everything. Usually, it is the smart one worried about getting a bad grade. You might say, it is the one who feels an obligation to fill the power vacuum when there becomes a need and the person has a desire and abilities to accomplish the goal. So there are three criteria: Need, desire and abilities We fill many roles in life and at times we are all followers and leaders in different circumstances. In business, I am a leader. At home, my wife leads and I obey. “Yes, dear.” I let her make the decisions on social activities, furnishing the house, child rearing, even the clothes I wear. I am totally socially inept in these activities. I trust her decision-making and know it will be better than mine. That is why I am a follower. In one setting, I might be a follower, in another, a leader, as the need arises and my abilities match the situation. Being a boss does not necessarily make you a leader. Being a leader is something you earn and is not something given to you. Let me give you an example. I call him “The WORST boss in the world.” I was working at a bank and the boss called a meeting of all the loan officers. He starts off talking about this new boat he just bought. Boy, he loved this stupid boat. The speech was pretty much that his income depended on our sales and we should help him make lots of money to pay for this boat by getting more loans. It was the worst motivational speech ever! I have been in similar situations where I have been the boss and I had to motivate my loan officers to get more production. This is what I told them. “How can I help you make more money? Because when you make more money, I make more money.” Morons think that “all being the boss means” is that you get to order people around. That is why they are morons. Nothing can be further from the truth. It is all about motivating people. And how do you motivate and influence your minions to do you bidding? Simple, find out what they want and help them achieve it. Not only will they do it, they will love you for it. Now comes the hard part about
being a leader. You have to plan, organize, motivate and get your people striving for a common goal that helps both you and them. It can’t help just you, and it certainly can’t just help them. What is the point in that? I told you being a leader is harder. It is just so much easier being a follower. Just tell me what to do, how to do it and when. I will do it. The trouble is, there are so many bad leaders out there. How can you trust your leader not to just lead you off a cliff? That is why I never joined the military. My biggest fear was that my superior would be one of those morons: “Go take that hill! Oops! Wrong hill, my bad. Sorry you were killed.” In many things I do, I prefer to be a follower, but, there are times when I just cannot stand it any longer and feel the desire to take the leadership role just for my own sanity. If I see a situation going off the rails, I just have to step in and fix it. It is my nature. I cannot help it. If you are like me, you probably own your own small mortgage broker shop already. That’s why I started mine years ago. The boss was an idiot and I just couldn’t stand it any longer. If you aren’t like me and have no idea what I am talking about, you are a great follower. There is nothing wrong with that. The only way a leader can lead is if there are followers to follow. The vast majority of people are followers, obviously, which is a good thing. We all cannot be leaders all the time, every time. If we were, nothing would ever get done. Just recognize, as a follower, you are putting your fate into someone else’s hands. 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.
“Establish a culture where people are not afraid of sharing their ideas. There will be true synergy in suggestions and opinions in a non-threatening environment.”
There Is Always a Better Way to Lead By Elizabeth Morales
“Train people well enough so they can leave, treat them well enough so they don’t want to. Clients do not come first. Employees come first. If you take care of your employees, they will take
And remember Peter Druker’s famous line, “Culture eats strategy for breakfast.” Happy leading, not managing people. Manage tasks, lead your folks. Elizabeth Morales is business development director for Long Beach, Calif.based Applied Business Software Inc., creators of The Mortgage Office and The Loan Office Software. She may be reached by phone at (562) 279-7424 or e-mail Elizabeth@ABSNetwork.com. 87
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Many people have your skill set, everyone is replaceable, you have been late two days in a row, five minutes each day, blah, blah, blah …” and everything in between, employee engagement is directly correlated to feeling appreciated and valued. Work place rules are necessary, but it is so much more productive to have employees who buy into your mission and wear your t-shirt proudly. You can have your employees operate from fear or from creativity. You will get results either way. Try them both to see where you have the highest productivity and lowest turnover. I appreciate my employees, what kind of perks can I give them? That depends on your budget, but whatever you do, track employee engagement before and after perks implementation. Maybe your employees are mainly single and pet owners. Provide pet insurance and bring your pet to work day. Tuition reimbursement is a big perk, and if you can afford it you should offer it, student loan repayment could be a great alternative to the traditional tuition reimbursement perk. Doing staff development in your office? How about at a local restaurant, in Bora Bora or Hawaii? Let employees bring their families on these trips. Train your folks for six hours and send them off to enjoy the rest of the day with their family. SC Johnson (makers of My Big Fat Greek Wedding’s favorite product: Windex) has an errand runner on-site to take clothes to the cleaners, deliver flowers, stand in line for concert tickets, go grocery shopping and other errands. Think of perks your employees would appreciate. You don’t have to spend a lot of money: Let them have their birthday off, cater lunch once a month, send everyone home early because you hit a sales record or a significant milestone, give away movie tickets,
care of the clients.”—Richard Branson, Virgin, CEO
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In a knowledge-based worker society where companies strive to attract and keep the best talent, leadership is a key ingredient on a very delicate recipe. It starts with hiring the right people. Hire folks who know what you do and why you do it; people that know your mission and believe in your service or product. Equip them with the tools they need to be productive and finally get out of the way. Yes. Let their creativity come to work with them. Once you have put in place the systems and processes for your department/floor/company to run on autopilot move to the next level and ask your employees a very simple question: “How am I doing as a leader?” How many times has your leader asked you that? How would you feel if she did? A bit humbling … right? That simple question changes the dynamic in a leader/employee relationship. All of the sudden the leader becomes real and concerned about what her direct reports’ opinions of her and her leadership style. Establish a culture where people are not afraid of sharing their ideas. There will be true synergy in suggestions and opinions in a non-threatening environment. One of the ways to show employee appreciation is by providing perks. Around this time of year multiple publications reveal the top companies in the country to work for. This is when everyone wonders (except Google employees) how a day in Google Offices would be. They provide three organic meals a day to all their employees, healthy snacks, onsite massages, child care, car washes, yoga classes, a play room, $12,000 in tuition reimbursement and many more perks. Their employee engagement is among the highest in the country. Coincidental? Not at all. From that kind of treatment to “You should be thankful you have a job.
Amazon Prime Membership, have a refrigerator full of water, fruits and other healthy snacks. Above all this always have Staff Development Days to collectively move the needle forward. Never underestimate your employees. They are the heart of your business. If ever in doubt remember these words of wisdom:
“It’s critical that you know your sales team inside and out. How many A-players, B-players and C-players do you have?�
Seven Steps to Building a Championship Sales Team
2. Assess the existing team
By Marc Wayshak
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Joe runs a company with 19 salespeople—a mix of veterans and newcomers. Sales have been flat for the past 18 months even though the economy has improved. Joe is constantly making futile attempts to get his team to prospect more. He tries to show them how to sell more effectively, but they continue to fall back into the same old habits. Sound familiar? I’m willing to bet it does. Joe’s is one of the most common situations I encounter as a sales strategist. Entrepreneurial organizations often underperform because they haven’t built their sales teams systematically. But it doesn’t have to be that way. Follow these seven steps to turn your ineffectual sales crew into a high-
performing championship team:
1. Evaluate your current strategy There are three key ways to increase sales: Find more prospects, make larger sales and increase your closing ratios. Do you have a strategy that addresses all three? More importantly, are you focused on selling to your ideal customer? Companies often try to sell to everyone, but all of the serious rewards come when they focus on hitting their sweet spot. In Joe’s case, his salespeople are indiscriminately calling on any and every prospect they come across. He needs to clarify for his team exactly where they should be focusing their time and efforts in order to increase all areas of sales growth.
It’s critical that you know your sales team inside and out. How many A-players, B-players and C-players do you have? How does your existing team feel about the organization? How should you manage each salesperson according to his strengths and weaknesses? For example, Joe knows that he has only three A-players and eight B-players while the rest are C-players or worse. He’s spending most of his time trying to improve the latter group with little to show for the effort. Instead, he should realistically evaluate the strengths and weaknesses of each team member and be willing to replace some of his underperformers with new recruits. Both online data-driven assessments and onsite evaluations can help him conduct this analysis.
3. Develop a hiring process Right now, Joe has no hiring process and employs people based on his gut in interviews. As a result, he has struggled with a number of mis-hires over the
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years. Mid-sized companies like Joe’s rarely have a formal hiring process. Instead, when they realize they desperately need a new salesperson, they use a throwaway method, culling through some resumes, setting up a few face-toface interviews and eventually selecting the most adequate of the lot. But hiring is the most critical part of developing a championship sales team! It’s time to create a formal process that involves assessments, phone screens, consistent interview questions and role-plays.
4. Compensate for results Because most companies are afraid to scare away potential hires, they offer a massive base salary with a small bonus or commission opportunity. However, when you have a large salary and small commission, you limit the upside that a salesperson can really earn—even if he well exceeds his sales goals. Therefore, this type of compensation plan will be most appealing to B- and C-players since they’ll still earn their healthy base salary even if they produce little. The Aplayer, however, wants massive upside when he hurtles past his sales goal. Because Joe’s compensation plan is a base salary with a small bonus, he’s not only attracting underperformers, but actually repelling top performers. He must revise his compensation structure to deemphasize base salary and promote high performance.
5. Train consistently A suggestion here and there doesn’t count as consistent training. In order to develop a championship sales team, it’s critical that you invest a lot into training. This means conducting regular trainings to reinforce the most critical selling concepts and ensure that every salesperson is on the same page technique-wise. In Joe’s organization, each salesperson sells in his or her own way. They’re all over the map in terms of effectiveness. Joe must either develop or bring in an outside selling system for everyone in the organization to follow.
6. Create accountability Most mid-sized organizations only track their salespeople’s sales numbers. But
what about their day-to-day prospecting activities? How many calls are made, referrals asked for and meetings set up? By holding your salespeople accountable for their daily prospecting activities, you can predict what their pipeline will be, which is the most important indicator of future sales. Up until now, Joe has only reviewed sales numbers at the end of each month. This leaves his sales team feeling frustrated and without a clear daily plan to find success. By laying out what he expects his salespeople to do each day, Joe can more effectively manage his team.
Marc Wayshak is the author of two as well as a regular contributor for may be reached by phone at (617) 203books on sales and leadership, Game Entrepreneur Magazine and The 2171, e-mail Info@MarcWayshak.com or Plan Selling and Breaking All Barriers, Huffington Post Business section. He visit MarcWayshak.com.
7. Reassess strategy regularly
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Following these seven steps can take organizations from haphazardly managing their people to developing a championship sales team. In the case of Joe’s organization—with the right strategy, more A-players, a results-based compensation structure and a better-trained sales team that’s held more accountable—the company has the potential to break the inertia of old habits within his team and ultimately increase sales. This process does not happen overnight, but can lead to massive growth if implemented. By breaking the process down into seven steps, an organization can focus on one area at a time in order to build a well-oiled championship sales team.
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Once companies find a strategy that seems to work, they’re often fearful of reassessing. The problem with sticking to one strategy for an extended period of time is that markets and ideal customers are dynamic and elusive. Your ideal client today may be entirely different in a year. Thus, it’s critical for management to keep its finger on the market’s pulse by staying in constant communication with the sales team. Currently, Joe does the occasional ridealong with hand-picked salespeople, but this is not enough. He must regularly engage in open discussion with his salespeople to learn what’s really going on. He needs to go on sales calls frequently and develop lines of communication with customers. Throughout this process, if he and his management team believe the sales strategy needs to be altered, they must test the changes with a beta group. If the strategy proves to be optimal, they must then implement it throughout the entire team.
“Creating a culture that people want to be a part of will naturally breed talent. In any organization, engaged employees will always be your best ambassadors.”
Built to Lead By Sarah Valentini
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Walk through any Barnes & Noble and it should come as no surprise that an aisle comprised solely of self-help books exists—many of them on the subject of leadership, leadership on the field, leadership off the field and even leadership within the workplace. Though some of these are immensely beneficial and enriching, most say the same things only in different words. I think that may be why I don’t often read them. I’m regularly asked if I always knew that I wanted to be a leader while growing up. Honestly, I don’t think I did, although, if asked, my siblings would say I was always bossy. There is also the debate whether people are born leaders or learn to become leaders. Surely, there are natural born leaders. Take a spin to a playground and you will see leadership in action. Or, just think of athletes and musicians—the prodigies often come to mind. Behind every prodigy is a superstar who was not born with the same innate abilities, but who worked hard and honed their skills to rise to the top. The same can be said about leadership. Today, the mortgage business is as challenging as it’s ever been, as we
work in an industry with no room for error. And now, more than ever, it’s become of paramount importance to attract, develop and retain great employees and identify great leaders. Wouldn’t it be great if we could go into the grocery store and pick employees off the shelf and put them in our cart? It is something we often joke (or cry) about in our office at radius financial group. When looking from the outside in, the topic of age always seems to be at the forefront of our industry. If you look around, there are vast majority of middle aged white men—a stereotype screaming for diversity and young blood. Suffice it to say, there’s no doubt the meltdown of our industry forced many people out the door. And let’s face it … what young bright individual wanted to get into this business after it was strewn over every national headline? Now that the dust has settled, we are in the midst of an opportune time for young, ambitious people to get into the mortgage lending industry. There’s tremendous opportunity for those who can endure the blood, sweat and tears it often takes to be a successful mortgage banker. When I think back to my early days in the industry, most of the
leaders were young, and it was encouraged to identify good talent and foster it. There are great leaders at every age and, in my opinion, it’s the best leaders who want to cultivate those qualities in others. In our industry, it’s imperative to lay the groundwork for the next generation of mortgage bankers. The fact of the matter is that most organizations, regardless of the industry, struggle with attracting great talent. You have to find ways to differentiate from the others. Mortgage banking is not for everyone and even people who have the skill sets may not necessary be right for the business. To go outside of the box in hiring, you must be willing to have a higher rate of turnover than you would otherwise allow. You don’t have to do something drastic to find great people. Creating a culture that people want to be a part of will naturally breed talent. In any organization, engaged employees will always be your best ambassadors. Once you find them, you have to keep them. So, how do we retain great leaders? l Give them a seat at the table: People want to make an impact and they need an opportunity to do so. You put them in a leadership role for a reason. Let them lead. l Accept that they will do things differently from the way you do: Don’t let your experience or mindset get in
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the way of what they want to do. l Let them make mistakes: Unless you’ve never made a mistake, let your employees make them and learn from them. Just don’t make any mistakes with TRID! l Finding effective leaders can often be right under your nose: Take an honest look around your office and see what you uncover. You never know when you’ll find the next diamond in the rough. l Kickoff formal or informal mentor program: Entrust your proven talent with the responsibility of bringing up the next generation of leaders. This is a great way to develop talent and create a cohesive culture. And, more often than not, mentors may be surprised by what they might learn from the mentees. l Create contests: Not only will these help you accomplish key objectives, but it will encourage teamwork and leadership. Contests should not be limited to originators. Inspire your operations staff to get excited about friendly competition. l Peer recognition programs: Have your employees nominate one another for “going above and beyond.” Employees will feel appreciated and you’ll be able to acquire feedback about people you might not have otherwise known. Anyone with years of experience in this industry, and is still alive to tell about it, must love what they do. If you love the business like I love the business, we have to focus on making sure it’s still a great place for the next generation to work and that homeownership remains part of the American dream. Do your part to help pass the torch. Sarah Valentini is a leading mortgage professional with 20 years of experience in residential and commercial lending. In 1999, she launched radius financial group inc., where she serves today as the company’s president and principal. Under Sarah’s leadership, radius has grown from a small, local lender to one of New England’s leading, private mortgage banks.
heard on the street continued from page 64
MBA. Employees of the IRS and MBA are not eligible to participate in the contest. Awards may be subject to federal income taxes. Since 2010, the federal government has administered more than 660 prize competitions. The Tax Design Challenge is authorized under the America COMPETES Reauthorization Act (Pub. L. 111-358).
Mortgage Network Opens Branch in New Hampshire
Pavaso Inc. and SigniaDocs Inc. have announced the integration between
Genworth Mortgage Insurance, a subsidiary of Genworth Financial Inc., has announced that it has forged an exclusive partnership with Roostify, a Web and mobile platform that streamlines and accelerates the homebuying process. Roostify’s platform gives consumers the power to submit a complete and accurate application in under 20 minutes, allowing loan officers to spend more time focused on closing loans rather than searching for information and documents. It also serves as a networking tool, allowing for interaction among loan officers, real estate agents, underwriters, and consumers all in one digital hub. “The mortgage origination space is continued on page 92
he U.S. House of Representatives recently took up a Senate-passed bill, the SCRA Foreclosure Protection Act, which would renew protections for foreclosure for military personnel transitioning back to civilian life. The bipartisan legislation, which the Mortgage Bankers Association (MBA) had testified in support of earlier this year, ensures the brave men and women of our military won’t lose their home when they transition back to civilian life. A Call to Action was issued to Mortgage Action Alliance (MAA) members regarding HR 2121, an MBA priority and an important bill for the mortgage industry that would provide transitional authority to originate mortgages for individuals who move from a federally-insured institution to a non-bank lender while they work to meet the SAFE Act’s licensing and testing requirements. House Republicans recently released their Budget Resolution, and in a victory for the industry, included an MBA-supported prohibition on the use of Fannie Mae and Freddie Mac guarantee fees to pay for unrelated spending. The Budget Resolution, which serves as a fiscal blueprint for spending and tax policy, faces an uncertain future in the full House due to concerns about overall spending levels. Please stay tuned for any future MAA Calls to Action to ensure this vital provision is included in any budget deal. The Mortgage Action Alliance recently sent out a letter asking MAA members about any personal relationships that they have with their elected officials. These relationships can be incredibly valuable to our advocacy efforts on behalf of the industry. Please consider joining MAA and helping us leverage your personal relationships to advocate on behalf of our industry. The industry’s ability to navigate and manage these policy challenges will be critical to our efforts to serve consumers. 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 the MAA can do so at Action.MBA.org. If you have any questions regarding MBA’s advocacy programs, please contact MBA’s Director of Political Affairs Annie Gawkowski at (202) 557-2816 or AGawkowski@MBA.org.
T
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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Pavaso Partners With SigniaDocs on e-Closings
Genworth Announces Partnership With Tech Provider Roostify
A Message From MAA Chairman Fowler Williams
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Mortgage Network Inc. has announced that it has opened a branch office in Salem, N.H. The office will be managed by Martha Harvey, previously branch manager of Mortgage Network’s Westford, Mass. office. A veteran mortgage professional with more than 25 years of experience, Harvey joined Mortgage Network in 2007 after serving as a loan officer at Countrywide and North American Mortgage. Joining Harvey at the Salem office is loan officer David Barbato, who previously served as a loan officer in the Westford branch, in addition to an operations staff of four people. “Our Salem office is perfectly located to reach borrowers in southern New Hampshire and north of Boston who are in need of greater home financing options,” said Brian Koss, Mortgage Network executive vice president. “We chose Martha to lead this office due to her proven leadership skills and impeccable customer service record. We look forward to serving the Salem community for many years to come.” Harvey said real estate prices in Salem and north of Boston are within reach of many first-time buyers, but that new federal regulations have made the lending process more complicated. “While the market is improving, most people have trouble figuring out what they need to get approved,” Harvey said. “Thankfully, Mortgage Network has the systems and support I need to guide borrowers through the process as painlessly as possible. Whether they are buying their first home, moving into a bigger home, or refinancing an existing mortgage, we are ready to help local residents achieve their home financing goals.”
their two platforms to facilitate an allinclusive eClosing process. “SigniaDocs has always approached eMortgage in a holistic way, and this integration to Pavaso demonstrates our goal to support the entire transaction of an electronic loan life cycle. Our eMortgage platform and, specifically, our data-driven SMARTDoc approach facilitates compliant, secure, dataportable loan files from the closing table through every aspect of the secondary market,” said Paul Anselmo, CEO of SigniaDocs. Among the many benefits that users of both systems will now gain, the SigniaDocs integration provides Pavaso with an additional layer of MISMO compliance for closings conducted on the Pavaso Digital Close platform, as well as pass-through processing to any LOS that SigniaDocs is integrated with today. In addition to e-Sign capability, SigniaDocs customers can leverage the flexibility of the Pavaso Digital Close closing platform, which can handle digital, paper or hybrid closings, and achieve a new level of collaboration for all stakeholders involved in the closing. The platform also incorporates the real estate agent and title company as part of a unified process to consumers, delivering a modern, world-class closing experience. “Electronic mortgage documents are a critical component to achieving a complete eClosing process,” said Nancy Pratt, vice president of business relationships and government affairs at Pavaso. “SigniaDocs’ technology is highly complimentary to the Pavaso platform, and through this integration, we foresee improved ability to get the buyer to the closing table faster, without sacrificing the quality of their experience throughout the process.”
MBA’s Mortgage Action Alliance
heard on the street
of the company, focusing on increasing efficiency and production.
GOGUEN
EASTEP
l Paramount Residential Mortgage Group Inc. (PRMG) has announced the addition of Deborah Goguen as wholesale regional manager for the Mid-Atlantic Region.
We s t e r n R e g i o n a l M e e t i n g May 10-11, 2016 Huntington Beach, CA Hyatt Regency Huntington Beach Resort & Spa
An n u a l M e e t i n g & E x p o November 14-16, 2016 Chicago, IL Swissotel Chicago For more info, go to: www.NRMLAonline.org
HENKE
l ClosingCorp has announced that Kristin Henke has joined the company as senior director of operations, where she will be responsible for coordinating the design, implementation and maintenance of programs in support of rate, fee and client-specific data collection as well as architecting the infrastructure for some of ClosingCorp’s most strategic title underwriter partnerships.
PHILBROOK
NationalMortgageProfessional.com
Save the dates!
l First Guaranty Mortgage Corporation (FGMC) has announced that it has appointed Robert B. Eastep, CPA as its chief financial officer.
l Kyle Philbrook has joined the sales team of the Boston branch office of Mortgage Network Inc., where he will be responsible for serving buyers and homeowners throughout the Boston metropolitan area.
JOHNSON
l New Penn Financial LLC has announced the addition of mortgage industry veteran Julie McCall as operations manager for the lender’s East Coast Third-Party Originations (TPO) channel. l Primary Capital Mortgage (PCM) has announced the addition of Kyle Eddy to its leadership team in the role of senior vice president, consumer direct.
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l Brian Boyles has joined Academy Mortgage as North Central regional manager, responsible for directing Academy’s sales, recruiting, market expansion and business development in Northern Illinois, Wiscon-sin, Minnesota, Iowa, Nebraska, Kansas, North Dakota and South Dakota markets.
l AmeriSave Mortgage Corporation announces that Barbara Johnson, CFA has accepted an offer to become the company’s chief operating officer, where she will play an integral role in every area
NERY
Mortgage Professionals to Watch
MCCALL
really just starting to benefit from technology advancements and Genworth is laser-focused on staying ahead of the technological curve,” said Kevin McMahon, SVP of Strategy & Business Intelligence for Genworth Mortgage Insurance. “Being the first mortgage insurance provider to integrate with a partner like Roostify greatly enhances Genworth’s existing offerings. We’re focused on helping our customers grow their business and drive origination process efficiencies. A platform of this scale is particularly timely and valuable given demand for new homes is steadily increasing.” With the new technology, loan officers using the Roostify platform can also process originations via their mobile devices. Furthermore, the platform can be white-labeled and customized with each lender’s branding, style, and product offerings. “Roostify is answering the call to simplify the consumer home lending experience, as streamlined, cuttingedge mortgage origination solutions become a necessity rather than a luxury,” said Rajesh Bhat, co-founder and CEO of Roostify. “Our partnership with Genworth aims to address a sizeable need for innovation and improved efficiencies in the housing industry.”
BOYLES
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l The National Association of Hispanic Real Estate Professionals (NAHREP) closed out its 2016 Housing Policy & Hispanic Lending Conference with the installation of Joseph Nery as 2016 president. l Mortgage Financial Services has hired former NAMB—The Association of Mortgage Professionals Government Affairs Committee Chair and Mortgage Broker Mike Anderson to help grow and manage mortgage originations in the southeast United States. l The Agency Group for WFG National Title Insurance Company has appointed John Micciche, CLTP to serve as vice president and regional manager and Walter Weinschenk as underwriting counsel for the company’s new Chesapeake Region, comprised of agents in Maryland; Delaware and Washington, D.C. (formerly of the Southeast Region). l GSF Mortgage has named Jim Ahlin, formerly a branch manager out of the Colorado office, as new area manager. He will be responsible for expanding the GSF Mortgage footprint in both the Colorado and Minnesota regions. GSF Mortgage has also named Marco LeBron as branch manager in the company’s Richmond, Va. office, joining with 15 years of mortgage industry experience. l Calyx Software has announced that Bob Dougherty has joined the company as vice president of business development, where he will be responsible for developing the company’s overall partner strategy, building relationships with key mortgage industry influencers and vendors, and increasing interface usage and revenues.
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.
nmp news flash continued from page 66
The median credit score on new first mortgages in the fourth quarter of 2015 was 750 and 90 percent of first mortgage borrowers had a score in excess of 646—these values are essentially unchanged for the past three years.”
MBA’s Lopez: CEOs Need to Be Involved in Tech Planning
“The mid-size to small lenders the most vulnerable as they work to update their systems,” Lopez said. “Many do not have the expertise or breadth of resources to protect their data properly. Should security systems fail, this could lead to reputational and branding risks that many smaller lenders simply cannot afford. It could even put them out of business. That is why lenders often look to vendor partners for solving their cybersecurity needs.”
California AG Hits Morgan Stanley With Lawsuit
Operation VA SITREP
“Your VA Situation Report”
Guardsman, Reservists and Deployments! By Richard M. Bettencourt Jr., CRMS, CMHS
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.
continued on page 95
n Montana Mortgage Professional Magazine n APRIL 2016
California Attorney General Kamala D. Harris has filed a lawsuit against Morgan Stanley, charging the financial institution with violating the False Claims Act, the California Securities Law and other state laws by misrepresenting the quality of its residential mortgage-backed securities (RMBS) and through its involvement in the failed Cheyne structured investment vehicle. The lawsuit covers the company’s actions between 2004 and 2007. In filing the lawsuit, Harris charged that Morgan Stanley’s actions wreaked financial havoc on California public servants, citing losses of hundreds of millions of dollars through investments in Morgan Stanley by the California Public Employees Retirement System and the California State Teachers Retirement System. “Morgan Stanley’s conduct in this case evidenced a culture of greed and deception that helped create a devastating economic crisis and crippled California’s budget,” said Harris. “This lawsuit is necessary in order to hold Morgan Stanley accountable for the destruction it caused to California, our people, and our pension funds.”
Wow! Snowstorms over the past few weeks in the New England area in April? Mother Nature loves to keep us on our toes! Last month, NAMB—The Association of Mortgage Professionals had its first annual NAMB East Conference in Hilton Head, S.C. This was a big step for NAMB. We’ve had incredible success in Vegas over the last four years and this year we decided to gamble a little (seriously … what mortgage professional doesn’t gamble a little?) and give the East Coast a shot for a conference. Well, let me tell you it was more than we ever imagined. I want to personally thank United Wholesale Mortgage (UWM) for being our Premier Sponsor. I would also like to thank all of the other sponsors, vendors, and of course, mortgage professionals, who took time out of their busy schedules to attend. I’ll tell you, it’s amazing to see such a resurgence in the broker industry. I mean, you could just feel the energy in the air. So, don’t miss NAMB National 2016, which will be held in Las Vegas from Sept. 24-27 at the Luxor Hotel! NAMB East featured some amazing speakers, invaluable breakout ses- 93 sions, a round of golf on one of America’s top 75 golf courses, and a demonstration from the 2012 Masters of Long Drive Champion. We enjoyed a cocktail reception on the patio under the stars with amazing live music and dancing! Yours truly is not a dancer and it’s best if I just stick with what I do best and that’s helping our veterans! That being said … I had the pleasure of hosting a breakout session with my VA Committee Vice Chairperson, Ken Bates from Military Home Loans. We only had 45 minutes, and if you know Ken and I, you definitely know that 45 minutes is not enough time for one of us, never mind the both of us, together on the same stage! Our goal was to pass along some tips and tricks that we’ve learned after years of VA loan origination. Tips and tricks that could help a passionate mortgage professional increase and even double their VA book of business. There were some great questions, but one in particular stood out, and I wanted to quickly address it in this month’s article. An attendee asked a great question pertaining to Army National Guard and/or Reservist from the various branches. The question was, “Are Guardsmen/Reservists eligible for the VA Home Loan Benefit even if they haven’t served the minimum six years required by the VA?” The answer could quite possibly be “Yes!” How? We all have a co-worker, colleague, friend or family member that either served or is serving in the Guard/Reserves. I would also venture to say that the majority of Americans are aware that the U.S. has been actively engaged in military actions for the last 15 years. You’ll hear terminologies such as “Operation Iraqi Freedom,” “Operation Enduring Freedom,” “Operation New Dawn,” and several other classifications of military actions. What I think many of us do not realize is the number and frequency of Guard/Reserve units that have been activated to “Active Duty” status in support of those operations. Now, there are two types of “activations” for Guard/Reserve units. We are going to focus on Title 10 activations. When a Guard Unit, say the 379th Engineering Battalion out of Massachusetts, was called up in support of Operation Enduring Freedom and subsequently deployed to Afghanistan, that unit was put on “Active Duty” status, and as such, opened up the possibility of those soldiers being granted access to their VA home loan benefit before their six years of service has been completed. NationalMortgageProfessional.com
Mortgage Bankers Association (MBA) Chairman-Elect Rodrigo Lopez has warned industry professionals that a commitment to technology must be rooted in the C-suite. Speaking yesterday at the trade group’s Annual Technology Conference, Lopez defined technology as “the infrastructure upon which we should invest to keep the industry moving forward, but also moving together.” Yet he expressed concern that keeping the corporate hierarchy separate from hightech decision making would be a business error. “A culture of technology must start with the CEO if it is to truly be incorporated throughout the company,” said Lopez, who is also executive chairman of Omaha-based Northmarq Capital Finance. “CEOs should be intentional and deliberate in their strategic thinking by integrating technology with operations, risk management and customer service.” Lopez also praised mortgage professional for being ahead of the curve in their embrace of mobile technology. “With consumers using hand-held devices for everyday life activities, the mortgage industry has been making incredible strides toward fully electronic mortgage transactions,” he continued. “We now have online mortgages, e-closing capabilities, digital prequalification and personalized video disclosures. Each of these complies with regulatory standards. Technology has also improved settlement and title services.” However, he noted that many mortgage professionals were still a little too cautious in using social media as a customer service tool. “This is understandable—in some ways, social media is still the great unknown,” he said. “But if the industry does not learn and take advantage of social media’s usefulness, we could miss out on a great number of new customers.” But Lopez observed there was an even greater concern to the industry regarding cybersecurity, which he stated was particularly vulnerable at the smaller companies.
New Book Champions the Benefits of Property Taxes BY PHIL HALL
Mortgage Technology
Join Our Facebook Group! By Andy W. Harris, CRMS ust in case you didn’t know, I’ll remind you to make sure you do. This column is for YOU, the mortgage loan originator (MLO). The content is created by us, for us. Now is the time to share your stories, thoughts, experiences and anything else you can muster up in this crazy and exciting business when originating mortgage loans in the primary mortgage market. Please join the new Facebook group by searching for “OrigiNation.” This is a public and open group and information shared will possibly be featured in this column of National Mortgage Professional Magazine (with your consent of course). People want to hear from you … the good stories and the bad, the funny and the serious … let’s connect and share. Search today on Facebook and join us! Are you an originator? Send your stories! To have topics considered in future editions, please e-mail me with “OrigiNation” in the Subject Line at AHarris@VantageMortgageGroup.com. These can be confidential or your name and company can be referenced if you wish. You can also join the Facebook Group by searching for “OrigiNation.”
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Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and past president of the Oregon Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431, e-mail AHarris@VantageMortgageGroup.com or visit VantageMortgageGroup.com.
ew people find great pleasure in paying property taxes, and more than several politicians have sought elected office with grand promises of alleviating homeowners of this particular financial responsibility. But for Joan Youngman, author of the new book A Good Tax: Legal and Policy Issues for the Property Tax in the United States, the animosity aimed at property taxes has more to do with its ubiquity than any toll it takes on a homeowner’s budget. “First and foremost, this is a very visible tax,” explained Youngman, who is an attorney and serves as a senior fellow and chairwoman of the Department of Valuation and Taxation at the Lincoln Institute in Cambridge, Mass. “You sit down once or twice a year and write out a very big check. It gets your attention and starts you to think about it. Whereas, a sales tax is different—no one know how much they pay in their sales taxes. A tax that always gets your attention is always a focus of attacks.” Youngman traces the political targeting of property taxes to the controversial Proposition 13 movement in California in 1978. “It was a very California story,” Youngman noted, recalling how tumult resulting from an unpopular reform of the state’s property valuation system spiraled into a populist pushback spearheaded by anti-tax activist Howard Jarvis, resulting in a voter-approved referendum that created a new limit on property tax collections. Since the passage of Proposition 13, a number of politicians sought votes with talk about lowering or even eliminating property taxes, but Youngman observed that did not mean they were willing to cut out taxes completely. “A lot of public officials would be happier with invisible taxes,” she said. But the 2008 recession and the lethargic recovery that followed helped to change political opinion on property taxes. “Sales taxes declined by double digits,” Youngman continued. “Property taxes were a fiscal lifeline for local governments.” In her book, Youngman detailed that property taxes generate roughly $472 billion annually, with much of the money used to finance public services. She added that the intelligent use of property tax money plays a key role in determining home values. “That is one of the great benefits of the property tax’s visibility,” she said. “People know if the tax revenue is spent wisely on good public services, it has an effect on property values. After all, an excellent school system benefits everyone, even those who do not have children in school—it helps make a community to be a more attractive place to live. Conversely, high property taxes that are not spent well can sound an alarm bell.” Youngman also observed that property taxes play an important role in preventing would-be homeowners from borrowing beyond their means. “People who make a major life purchase like a house are aware of all costs,” Youngman said. “If there is a change in taxes, that could make a different in choosing that house or in choosing to move somewhere else.”
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Phil Hall is managing editor of National Mortgage Professional Magazine. He may be reached by e-mail at philh@nmpmediacorp.com.
va sitrep continued from page 93
You may now be asking yourself, “How is that possible Mr. VA Guy?” Well, under U.S. Code Title 10, if an Army, Navy, Air Force, Marine, or Coast Guard Reservist/Guardsmen serves a minimum of 90 days in support of an active Operation, then he or she will have the ability to request a Certificate of Eligibility (COE) from the VA. That veteran will receive a DD214 from that term of service (oftentimes that deployment or Active Duty term is between six to 10 months) and on their DD214 in the Comments Section, it will indicate: “In support of Operation XXX, U.S. Code Title 10 …” That might not be exactly how it’s written, but it’s pretty close! If that veteran meets the discharge requirements (Honorable, General Under Honorable Conditions, Other Than Honorable) and served 90 days, you’re good to go to order a COE! I meet at least a dozen Reservists and Guardsmen each year who were unaware they could apply for a VA COE. They were still under the impression they needed six years even though they had a deployment. Think about it! How many veterans
own their own homes with financing other than the VA loan, simply because they never knew they had access to this amazing benefit? How many veterans are waiting in a low rate market like we have now to buy their next or first home? Imagine what an educated and passionate VA loan specialist could do for those veterans! Remember, veterans don’t know what they don’t know, and it’s your job to offer expert educational services to help them access their benefit! That’s about all the time and space I have for this article, and not to mention, I’ll probably be outside shoveling in a little while! Have a great month, and remember, if you haven’t already, please take a minute today to thank a veteran. They’ve done more for us than we could ever repay! 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.
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the long and short continued from page 66
4. FHA Streamline Refinance l Proceeds are used to extinguish an existing FHA-insured first mortgage lien. l There is no maximum CLTV with subordinate financing. l New subordinate financing is permitted only where the proceeds of the subordinate financing are used to: l Reduce the principal amount of the
5. VA Interest Rate Reduction Refinance Loan (IRRRL) l The VA is not concerned about the second mortgage being refinanced, other than it must be assumable (VA Loan Center: FL/homeloan@va.gov. 4/4/16: per Nancy, 727-319-7500). l The IRRRL must replace the existing VA loan as the first lien on the same property. Any second lienholder would have to agree to a subordinate to the first lien holder. l The prior loan is current (not 30 days or more past due) at the time of loan closing. 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.
n Montana Mortgage Professional Magazine n APRIL 2016
3. FHA Short Refinance Allows refinance of a non-FHA-insured mortgage in which the borrower is in a negative equity position. l The new loan’s maximum LTV ratio is 97.75 percent of the current property value. l There is no maximum CLTV ratio for second liens held by government entities or instrumentalities of government. l The borrower must be current on the existing mortgage, or have successfully completed a qualifying three-month trial payment plan. The FHA Short Refinance program expires Dec. 31, 2016.
existing FHA-insured mortgage or finance the origination fees, other closing costs or discount points associated with the refinance. l No more than a one-time, 30-day late on the mortgage in last 12 months.
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owner must show they have been making payments on time for the last 12 months. The Home Affordable Refinance Program (HARP) will expire Dec. 31, 2016.
APRIL 2016 n Montana Mortgage Professional Magazine n NationalMortgageProfessional.com
Getting Back to Work
(Now That TRID Is Over)
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BY CARL MARKMAN
credit: cherezoff
good. Attorneys, estate planners and windows that barely insulate, carpets financial advisors should be on your that were installed before the iPod radar. Don’t sell to them, instead, came out. explain to them how you can help them These homes often are in absolutely and their clients. Referrals can come perfect locations for many buyers, from anywhere, but they’re more likely except they’re far from perfect in terms through. to come from people who are already By the time you’re reading this, of design and features. This is where dealing with qualified homebuyers. we’ve wrapped up Q1. TRID is in our educating everyone in the industry The housing industry is a team rearview mirror and all lenders are comes into play. You can score the sport, but without an official coach looking to improve on what many said winning goal through renovation calling plays. If you want someone to would be a huge dent on our bottom lending, but your teammates need to pass you the ball, they better like you line. Surprisingly though, even with the know that they should pass you the and feel that you’re capable of helping ball. They need to know what delays, many lenders did pretty well in them win. Q1. renovation lending is and the As a team player, it’s the lender’s But with all the headaches TRID possibilities it presents. obligation to communicate changes You should never be bored caused, and the even worse ones it Renovation lending may not be the My honest opinion, based on almost 25 with everyone else about what’s was supposed to cause, did you do a answer for your business though. If it’s coming up and the pitfalls that we can not, you need to figure out what will be years of experience in lending, is the good enough job in preparing for the biggest issue we face as an industry is help borrowers avoid. There are so future? when things change in the future. many opportunities and nuances out a lack of preparation. As an industry, and I mean the Everyone has different needs and there in lending that the more everyone situations. You have to have as many I’ve written this before in the pages housing industry, not the lending knows, the easier everyone’s job will of National Mortgage Professional industry, which is an important tools at your disposal as possible. be. Magazine, but some people still don’t differentiator, TRID was a tough one. What’s the demographic breakdown in Keep in mind that networking, good your region? What directions are the get it, so I’ll repeat myself. If you work We had to work harder than usual to networking, is much more than “calling trends leaning and what are the issues in this industry, you should never be make sure we were ready. Remember to see what’s up” and asking for Y2K? TRID wasn’t nearly as bad as that bored. affecting the builders and buyers in your referrals. What’s in it for the people Chance favors the prepared. To from a technology standpoint, but it area? And how can you help solve you’re calling? Tell them how you can definitely presented its share of hurdles. succeed in the greater housing world, them? help them, whether it’s directly or you need to prepare for the That said, the world didn’t end. Again, this is where networking unexpected challenges that will almost indirectly. It’s just not all about you. comes into play. If you’ve been meeting definitely occur. You cannot prepare for You can adapt or with financial planners and attorneys, or Change happens everything, but you can prepare for a speaking at community events, instead you can complain As rates rise, because eventually they lot. of just targeting real estate agents, you Having travelled around the country will, you need to be ready. You can’t You need to have the foresight to could be on the radar as a problemmore than I’d have liked during Q1, I look for ways to fill voids that will occur keep living like it’s 2011 or 2001 or solver for whatever comes next. Build can tell you that those who are doing whenever it is you were having a great your network and show them how you when faced with change. Rates are better right now are the ones that are year. You need to market both for the going to eventually go up. Are you the most educated about the recent can help solve whatever issues they times we live in and the times to come. have now, as well as those looming on anticipating the inevitable change? changes and continue to adapt to 97 While you can’t plan for everything, them. For example, the new Closing the horizon. So what’s to come? Disclosure (CD) caused a headache for you can plan for many things. Look at your own home as an example. Do you Politically, this is a very interesting time The power of attitude and many. Issuing the CD is unavoidable, and it’s something we all should learn have something in your medicine but to help dodge at least some of the predicting the future cabinet for when you get a headache? from. It doesn’t matter if you’re for delays, some lenders are issuing the There is so much you can control about Trump, Bernie, Hillary or someone else, the industry and it starts with the power Or do you wait for the pounding to CD earlier. And it’s not just about each has something to offer that we issuing the disclosures, it’s following up start. Do you plug your cell phone in of attitude. Trust, me, people are seeing can absorb. Each and every one of every night, or do you wait until it dies to make sure the borrower not just success across the country and it’s not them is in sales and they adapt their during a call? receives them, but understands them because of the sign on their door. It’s message to the audience they’re Hopefully you don’t get headaches and has questions answered well because of their attitude and their every day, but regardless, chances are speaking to. before they’re due. willingness to adjust when change Being in the lending business, we’re comes around. you have something at home to take When TRID first started, everyone all in sales, regardless of if you’re thought we were prepared, but overall, care of the situation. You’re prepared selling to borrowers, brokers or behind because you know eventually, you or we weren’t. Many of you have been in this the scenes. People work with those someone in your house will have a Many real estate agents didn’t fully industry for more than a decade and who have the message they like the understand what TRID meant for them. headache. those that haven’t, I’m sure have heard No one knows for sure what is going best. And if your message isn’t there, Nor did a lot of the loan originators. about the ‘good old days’ when things it’s because of a lack of preparation. to happen next, but don’t let that stop Frustration was rampant and there’s were easier. If this job was truly ever Personally, I’m still amazed at the you from planning your next move. still a lot of that out there today. easy for too long, trust me, everyone growth of renovation loans. I’m getting would do it. And then easy wouldn’t By the same token, TRID is a forever questions on them every single day thing. It’s here to stay, in some form at Disney was wrong exist any longer. In the housing industry, it is not a small and renovation training Webinars seem least, and we’re going to continue to No one has a crystal ball for the to be a hot commodity. I guess I have to adapt the entire industry to this world and we all need to look beyond future of the housing industry. The only shouldn’t be surprised though. Time the real estate agent channel for new world. guarantee is that things will eventually doesn’t stand still and homes will age, change and the most successful of us referrals. that’s guaranteed. With all of the potential referral The experts aren’t experts will be ready for it. What is not guaranteed is existing Consider this … as of December 2015, sources out there, I’ll say it again, you Look forward, try to see around owners taking care of their homes. You corners and be ready for when the should never be bored. When things some of the bigger players were up know exactly what I’m talking about … change comes. I’ll be right there with are good, you should continue to significantly from where they were in pink bathrooms from 20 years ago, network with all of your free time so December 2014. Purchases in you! you’re ready for when things take a December 2015 rose more than they turn in an unexpected direction. have since December 2006. Closings In addition to real estate agents, we rose by double digit percentages. Q1 Carl Markman is director of national sales for REMN Wholesale. need to connect with the industry started out rough, but then it took off A student of the housing industry for 20-plus years, he believes across the board. Builders are an with a mini-refi boom. Unanticipated that someone’s net worth can be maintained and grown by low rates led to brisk business for those obvious source, but go beyond that. focusing on a quality network. Carl can be reached by e-mail at Purchase business won’t always be nimble enough to react. CMarkman@REMN.com. RID happens … err, happened. Did you go out of business? I don’t have the stats in front of me, but I’d guess the majority of us pulled
T
If you listened to the experts, TRID going to ruin us all. Rates were going to skyrocket and we’d all be struggling. I’m not saying TRID wasn’t a headache. TRID’s effects will be felt throughout the year. But those that were prepared for life beyond TRID not only survived, but they thrived. That’s history though. What’s really important is that you’re staying focused on the next big issue. Which is … Honestly, I have no idea. If you do, please call me. Even the experts aren’t experts.
NationalMortgageProfessional.com
n Montana Mortgage Professional Magazine n APRIL 2016
outstanding
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 ’ s
o u t s t a n d i n g
p l a c e s
t o
w o r k
places to work
Assurance Financial
REMN Wholesale
255-239-7948 www.lendtheway.com
732-738-7100 www.remnwholesale.com
Assurance Financial has built a great reputation for closing loans on time, every time. Our operations team is committed to helping our branch managers and loan officers succeed. We have immediate openings throughout the South. Join us, and experience what a huge difference our support can make to your success!
Although REMN Wholesale is part of a large corporation, it feels like a “Mom and Pop”-style company. We encourage our team members to grow and we train and promote each individual to their full potential. As a national company, REMN provides many opportunities for employment from coast to coast.
PRMG
United Wholesale Mortgage
1-866-PRMG-YES (806-776-4937) www.PRMG.net
800-981-8898 www.uwm.com/careers
Built by originators for originators, PRMG was born from a vision of creating a company with a unique culture focused on the successes of the producer. We understand what it takes to be a successful originator and cultivate new business every day.
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calendar of events N A T I O N A L
M O R T G A G E
APRIL 2016
JUNE 2016
Monday-Tuesday, April 18-19
Sunday-Wednesday, June 5-8
National Association of Professional Mortgage Women 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.
National Notary Association 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.
Tuesday, April 19
Tuesday, June 21
2016 Florida Association of Mortgage Professionals Suncoast Chapter Trade Show The Holiday Inn 6231 Lake Osprey Drive Lakewood Ranch Fla. For more information, e-mail MartyRemillard@gmail.com or call (941) 223-9416.
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.
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.
American Land Title Association 110th Annual Convention Fairmont Scottsdale Princess 7575 East Princess Drive Scottsdale, Ariz. For more information, call (202) 296-3671 or visit ALTA.org.
Thursday-Friday, August 18-19
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.
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.
Monday-Wednesday, July 25-27
Tuesday-Wednesday, May 10-11
Appraisal Institute 2016 Annual Conference The Sheraton Charlotte 555 South McDowell Street Charlotte, N.C. For more information, call (888) 756-4624 or visit AppraisalInstitute.org/AnnualConference. AUGUST 2016
Sunday-Wednesday, October 23-26
Monday-Thursday, October 24-27 SEPTEMBER 2016
Wednesday September 14 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.
8th Annual Conference of Mortgage Brokers and Professionals Harrah’s Convention Center 777 Harrah’s Boulevard Atlantic City, N.J. For more information, call (732) 596-1619 or visit MBANJ.com. NOVEMBER 2016
Monday-Wednesday, November 14-16
OriginatorConnect 2016 Mohegan Sun 1 Mohegan Sun Boulevard Uncasville, Conn. For more information, call (860) 922-3441 or visit OriginatorConnect.com.
National Reverse Mortgage Lenders Association 2016 Annual Meeting & Expo The Swissotel Chicago 323 East Upper Wacker Drive Chicago For more information, call (202) 939-1784 or visit NRMLAOnline.org.
Friday, September 16
Monday-Wednesday, May 16-18
Sunday-Wednesday, August 7-10
Saturday-Monday, September 24-26
Wednesday-Thursday, November 16-17
American Land Title Association Federal Conference & Lobby Day Renaissance Downtown 999 9th Street NW Washington, D.C. For more information, call (202) 296-3671 or visit ALTA.org.
Summer CAMP 2016: Destination Napa The Westin Verasa: Napa 1314 McKinstry Street Napa, Calif. For more information, call (916) 448-8236, or visit TheCAMPsite.org.
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.
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.
Friday, November 18
To submit your entry for inclusion in the National Mortgage Professional Calendar of Events, please e-mail the details of your event, along with contact information, to newsroom@nmpmediacorp.com. * Looking for additional exposure at key industry events? Call 516.409.5555, ext. 4 to discover how to maximize your event coverage.
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Utah Association of Mortgage Professionals Expo 2016 Canyons Resort 4000 Canyons Resort Drive Park City, Utah For more information, call (860) 922-3441 or visit UAMPExpo.com.
n Montana Mortgage Professional Magazine n APRIL 2016
MAY 2016
OCTOBER 2016
Tuesday-Friday, October 4-7
NationalMortgageProfessional.com
American Mortgage Conference 2016 Marriott City Center 500 Fayetteville Street Raleigh, N.C. For more information, call (919) 781-7979 or visit NCBankers.org.
Ultimate Mortgage Expo 2016 Hotel Monteleone 214 Royal Street New Orleans For more information, call (860) 922-3441 or visit UltimateMortgageExpo.com.
National Reverse Mortgage Lenders Association 2016 Western Regional Meeting The Hyatt Regency Huntington Beach Resort & Spa 21500 Pacific Coast Highway Huntington Beach, Calif. For more information, call (202) 939-1784 or visit NRMLAOnline.org.
Wednesday-Saturday, August 17-20
JULY 2016
Monday-Tuesday, July 11-12 Monday-Wednesday, April 25-27
P R O F E S S I O N A L
APRIL 2016 n Montana Mortgage Professional Magazine n NationalMortgageProfessional.com
Playing by the Rules
BY AMY BERGSETH
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credit: shironsov
I
In every business, there are rules that can be broken and those that cannot. Success comes down to knowing which is which and having the courage to act on that knowledge. In our business, we write the software that helps companies get their work done in the most efficient, profitable manner possible, with the caveat that everything they do must comply with every letter handed down by their regulators. Trust me, the Consumer Financial Protection Bureau (CFPB) has a lot more rules than any hockey game. Automation can be the guardrails that keep you on track, the boards and glass that keep you on the rink. Good software allows the executive to focus on the work and not on the rules. We’re judged in this business by how well we follow the rules, but not every game is played that way. The women’s league I play on has rules against excessive contact, but the first player who doesn’t hit the ice ready to be aggressive will be pulled aside by the coach and asked what’s wrong. Actually, your teammates will pull you aside first if you give up a chance to adjust a competitor’s attitude with a bounce off the boards. Ah, it’s a great game! But I digress. In the mortgage game, our new focus on the consumer has turned our industry into a kinder, gentler financial services business. That’s great, but we can’t let it turn us into passive competitors—not if we want to succeed. We must empower our people to go into the market and work for every deal, maximize services provided to their clients in a compliant manner, and meet statutory timelines with ease through the use of industryspecific software. Anything less turns our industry into another production line, stamping documents while we watch the clock. That’s not a game I ever want to play.
“If you follow the ‘rules’ laid down by your competitors, you may become a fast follower, but you’ll never be a leader.” Amy Bergseth is vice president of Operations for Glencoe, Ill.based Exceleras, formerly Default Servicing Technologies. She can be reached by e-mail at Amy.Bergseth@Exceleras.com.
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skates, which are quite different from hockey skates. The biggest difference is that stopping doesn’t seem quite as important in figure skating. About the 10th time I flew crashing into the boards, my new coach pulled me aside for some remedial training. Today, I have 16 years of experience playing recreational hockey. It has changed who I am as a person, how I deal with conflict (no, this doesn’t mean I body check people in meetings), how I develop teams in the workplace, and how I lead software development teams. In this recurring column, I want to tell you about some of the lessons I learned from playing the sport I love. The first one is you have to be willing to break the rules if you’re going to get what you want. When I was young, I was told I couldn’t play and while I complained about it and was angry, I accepted that as the reality I would have to live with. Being a realist is not a bad thing, but when it comes to your dreams, you have to be willing to turn your back on the present reality to find something better. Someone did exactly that and today we have girls’ hockey and recreational leagues for women. And, as of this past fall, a professional women’s hockey league, the National Women’s Hockey League (NWHL)! Women’s hockey is an Olympic sport, too, as of 1998. Things have indeed changed dramatically, I’m happy to say. Business is no different. If you follow the “rules” laid down by your competitors, you may become a fast follower, but you’ll never be a leader. Every great leader who has achieved outstanding success has been accused of being a rule-breaker, a maverick or a trailblazer. These people go where others haven’t, maybe even where others were told they couldn’t go.
NationalMortgageProfessional.com
grew up in Minnesota, so as you might expect, I was raised with a solid Midwestern work ethic, an appreciation for cold weather, and a deep love for the game of hockey. I don’t generally go in for stereotypes, but I had to start this article somehow and we do pretty much all love hockey in Minnesota. Some of my earliest memories are of watching the game. I went to all of my brother’s games and wanted so badly to be out on the ice with him. Unfortunately, when I was a little girl, there were no girls’ hockey teams. Looking back, I guess that’s where I started earning my reputation as a rule-breaker. Now that I oversee operations for a mortgage industry technology firm, much of my work is focused on creating software that ensures that no rules are broken, ever. I’ll talk about how we apply what I learned from hockey in our business in a bit. But as I was preparing for this column, I looked back at some of my old high school yearbooks and was surprised to see how angry I was at the time that we girls were excluded from something as fundamental to life in the upper Midwest as hockey. One of my friends had signed my book with the words, “I hope you get to play hockey someday.” This is not to say I didn’t play. I owned a hockey stick and in Minnesota there’s always water around so we often had a creek or a pond nearby. And, in truth, there were some girls who played on the boy’s team, but competition was rough. I couldn’t ask my parents to invest in all of the equipment if I knew the chances of me going head to head with larger male players and doing well was slim. Later in life, when I went to school and entered the workforce, I found—like most professional women—that I could compete with anyone. That’s probably why I appreciate the thought of separating out female executives for recognition, but I rarely participate. I can compete with the men quite well, thank you. It would take me many years for my favorite sport to catch up with me. When it did, I was pleasantly surprised that, years after I left high school, I would have the opportunity to compete in a recreational women’s hockey league. Of course, I was a grown woman by this time with no experience playing on an actual hockey team. Most of the people who knew me thought I was nuts. As I got into training with my new team, I wondered if they were right. Growing up, I owned figure
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n National Mortgage Professional Magazine n APRIL 2016
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© Angel Mortgage LLC #1160240, Corporate office, Peachtree NW,, Suite 500B, Atlanta, GA 30305. offered orporate offic e, 3060 P eachtree Road NW 30305. Loans Loans in TTexas exas off Angel Oak M ortgage Solutions LL C NMLS #11 60240, C ered through Angel Home LLC, #685842.This Mortgage LLC implyy that any of our loan Angel Oak H ome LLoans oans LL C, NMLS #685842. This ccommunication ommunication is sent only only by Angel Angel Oak M ortgage Solutions LL C and is not intended to impl products will be offered governmental offered by or in conjunction conjunction with HUD, HUD, FHA, FHA, VA, VA, the U.S. U.S. government government or any ffederal, ederal, state or local g overnmental body. body. This is a business-to-business communication professionals onlyy and is not intended to be distr distributed Angel communication and is intended for for licensed licensed mortgage mortgage prof essionals onl ibuted to the cconsumer onsumer or the general general public. Ang el Oak Mortgage LLC Opportunity origin, Mortgage Solutions LL C is an Equal Oppor tunity Employer and does not discriminate discriminate against individuals on the basis of race, race, gender, gender, ccolor, olor, religion, national or igin, age, disability,, veteran status or other classification protected by law. age, disability law. 3-2-16 3-2-16 ANR/MBC