National Mortgage Professional Magazine February 2015 by United Sports Publications

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F addi sconsumeraccess.org. b Licensedd by Dp t 2 AAriizona: d th W Bel B l Road, R d Sui S te 1, Glendale, AZ 85308, N 0907158; Arkansas: Combi C binatition Mortgage BBroker k Servicer, Licensee No. 11884; Cal C lifornia: Licensed by by the th Department DDepa t t off Busi B iness Oversi O ight under d the California Residential Mortgage L ding Department, Licensee No. 21332; o Licensed as an Arizona Mortgage g g Banker under the AAriizona DDepar p rtment of Financiial IInstitittuti 8 g g Banker-Broker-Servi Banke k rr-Broker-Ser p rtment Mortga g ggee Lendi Department utitions, 4347 W. Licensee No. AAct,t Licensee NNo. 6037237 d Regul R g lattedd by by the th Col C lorado d Division off Real R l Estate; E t t Connecti C ticut:t Licen D laware: Licensedd by by the th Del D laware State St t Bank B k Commi C issiioner to t engage ( d through th 2014)) Distrit ict off Col C lumbi bia: Licensedd by by the th D.C. D C Department D p t t off Insurance, I surance, 6037237; C Collorado: nsedd bbyy the th Connecti C ticuutt Department D p t t off Banki B king, g Licensee No. N 10162; 1016222; Del engage g g in busi b iness in this State St t under d License No. No. 2403 (renewed throuugh gh 2014); Ins ensed Floriida: Floriida M tg g LLender d Licensee NNo. MLD333 M tg g Licensee, No. N 13967; 13967 Idaho: Id h Licensedd by by the th Idaho Id h Department D p t t off Finance, Licensee No. N MBL-5032; MBL 5032 Illinoiis: Illinoiis Resi Resiidentitial Mortgage 05484 Indi I diana: Indi I diana Firstt Lien Mortgage M tg g Lendi L ding License under d the th Indi I diana Department D p t t off FiFnanciial SSecuriities andd BBankikingg, Licensee NNo. MLB2917 MLB2917; M Mortgage MLD333; G Georg gia: G Georgi gia RResiidentitial Mortgage M g g Licensee, No. MB.0005484; Georgi I titutitions, Licensee NNo. 11058 0309 KKan K Licens C p y Licensee No. N SL.0000212; SL 0000212 Kentucky: K t ky Licensedd by by the th Kentucky K t ky Department D p t t off Financiial Insti I titutitions, MC16957 Loui L isiana: Resi R identitial Mortgage M tg g Lendi L ding Liicensee No. N 1421; 1421 Mai M ine: Supervi S p isedd Lender L d Licensee No. N SLM5962; SLM5962 Maryl Insti 11058; IIowa: LiL censedd bbyy th the IIowa Division off BBankikingg, Licensee NNo. 2004 2004-0309; sas: Kansas-Li edd Mortgage M tg g Company, n Licensee No. No. MC16957; M y and: Kansas: ensed M h tt Massachusetts M h tt Mortgage M tg g Broker/Lender/Servi B k /L d /S icer Regi t Minnesota t Resi ff to t enter t into t an agreement t law. Any t Marylylandd Mortgage M M tg g Lender L d Licensee No. N 1731; 1731 Massachusetts: M tg g Lender L d Licensee No. NNoo. ML 2917; 2917 Michigan: 1st 1 t Mortgage R gistrant, t t LiL censee No. N FR0714; FR0714 Minnesota: R identitial Mortgage M tg g Ori O iginator t License No. N MN-MO-20399083. MN MO 20399083 This is nott an offer g t under d Minnesota A y suchh offer ff mayy onlly be b made d pursuant p to q irementst in Minn. Stat. Section on 47.206 ((3)) and (4); ( ) Mississippppi: Licensedd by p t of Banking aand ndd Consumer ennsed byy the Missouri Division of Finance, Licensee No. No. 14-2178; Montana g g Lender under the Division of Banking & Financial Instititutitions, Licensee No. 8453; Nebraska: Nebraska: t the th requi by the th Mississippppi Department C 2178 Montana: M t a: Licensed Mortgage k Nebraska Mortgage M t g Banker LiL censee Finance, Licensee No. 2917; Missourii: Licensed M tg g Lendi L ding to k loans securedd by by liens on reall property, W t Warm 702 454 4212 New New Jersey: J y Department M ico: New NNo. 1470 1470; Nevada: N d Licensedd by by the th Nevada NNevada d Division off Mortgage t make makel p p ty Licensee No. NNo.1047 G ty Mortgage M tg g Corporati C p tion, n 1489 West W Spri Sp ings g Road, R d Sui S itee215 215,HHenderson, d NV 89014, 89014 Phone Ph e No. N 702-454-4212; J y Licensedd by by the theN th New Jersey DDepartme p t entt off Banki B king andd Insurance, I N 9700530; 9700530 New New Mexi New Mexi M ico 1047, Firstt Guaranty 215, NV New Licensee No. tg g LLoa S icer Regi R gistrati ttraatit on, Licensee No. B500800 B50080 (d/b/a C p on);) North Carollina: North th Carol C M t Mortgage g LLoan Com mpany p y License NNo. 01085 01085; NNew YYork:k Licensed Mortgage g g Banker - N.Y. .S. Bankiking DDepartment p and Exempt pM Mortgage ( p Naame First Guarantyy Mortgage g g Corporati North Caroollina Mortgage Company N.Y.S. Loann Servi FGMC In Lieu of True Corporate Name Lender Licensee No. L-100362; North Dakota: Licensed in North DDakota k t as Firstt Guaranty ty Mortgage M tg g Corporati N MB101924; MB101924 Ohio::Ohi M tg g Broker M tg g Banker B k Exempti MBMB 8550010 hhomaM O g Mortgage M tg g Lendi L ding Licensee No. GuaraantyMortgageCorporati G C p tion dba db FGMC, FGMC,LiLicensee No. FGMC MB101924;Ohi B k Act A t Mortgage E ption No. N MBMB.850010.000; MBMB.85 50010.000; 000 Oklahoma: h tg g Lender L d Licensee No. N ML002709; ML0002709 02709;O g Oregon No. ML-2634; 634 Pennsyl PPennnsylylvaniia: Ohio Mortgage Oklahoma Mortgage Oregon: D p t t off Banki B ng and Securities, Licensee No. 20768; Rhode IIslland: d Rhode Rh Island Licensedd LLend th Carol C lina: South Carol N MLS-2917; South Dakota: by the th South S th Dakota D k t Department Licensed byy the PPen nnsylylvaniia Department R er; South Caarolina Mortgage g g Lender/Servicer Licensee No. Dakotaa: Licensedd by Department p t g ation, n Division Pennsyl Lender; of Labor and Regul N ML.05077; ML 05077 Tennessee: T T D p t t off Financiial Insti I titut S ings t Licensedd by V t Department off BBankikingg, Licenseee No. Tennessee Department Mortgage tg g Licensee NNo. 109451 109451; TTexa by the th Texas T Department De D partment p t t off Savi g andd Mortgage M tg g Lendi L ding; g Utah: Ut h Utah Ut h Mortgage M tg g Enti EEnntitity Licensee No. No. 5491155; 5491155 Vermont: V by the th Vermont DDepar p rtment t t off utitit ons M Texas:s: Licensedd by g lationn,, Licensee No. the Virggiinia St State gt Washi W t Virginia: West Virginia Mortgage Lender Licensee No. ML-20742; Financiial RRegul N 6644; 6644 Virggiinia: Licensedd bbyy th t Corporati C p tioonn Commi C issiion as a Lender L d andd Broker BBroker, k , Licensee No. N MC-436; MC 436 Washi W hington: W hington t Consumer C L Company, C CL 2917 West 0742 Wi W sconsin: Follow us on: Loan Licensee No. CL-2917; Licensedd Wisconsiin M t BBanker, k Licensee NNo. 26835BA Mortgage 26835BA; W Wyomiing: Licensedd bby th the W Wyomiing Division off BBankiking, Licensee NNo. 18 31. 31 1831.

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n National Mortgage Professional Magazine n FEBRUARY 2015

Get more content from Frank and Brian on their daily show, The National Real Estate Post, at

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Hash It Out with Frank Garay & Brian Stevens

table o

N A T I O N A L

Mortgage Industry Mourns the Loss of NAMB Past President George Hanzimanolis By Eric Peck

F E B R U A R Y

35 Recruiting in a Blue Ocean By Mike Maida

2 0 1 5

M O R T

V O

A SPECIAL FOCUS ON “IT’S ALL ABOUT MARKETING”

How to Increase Your Business 80 Percent This Year by Building Client Relationships By Kerry Johnson, Ph.D. ........52 Customer Relationship Management Systems: Why They Should Matter to You By Ericka Smith ......................54 One-on-One Marketing By Tory Tarsitano, CRMS......................55 Why You Need Mobile in Your Marketing Strategy By Ben Brashen ............................................................................57 The Number One Way to Generate New Business By Brain Sacks ..............................................................................58

36 The Lead Generation Company: Managing the Risks By Jonathan Foxx

Conquering the Borrowers Who Just Won’t Shop By Kelly Booth................................................................................60 Short Attention Span Goldfish By Eric Weinstein ......................62 What Twitter Founder Jack Dorsey Teaches Us About Marketing By Marc Wayshak ............................................63

FEATURES How Top Producers Create Value By Gibran Nicholas................8 The Elite Performer: Wants vs. Needs By Andy W. Harris, CRMS ..............................................................8 Get Your Year in Gear By Bubba Mills ........................................10 Marketing for FHA-MIP-REMOVAL ............................................16 Lead Your Mortgage Sales Team to Greater Success By K. Justin Restaino ....................................................................18

42 Lykken on Leadership: The Seven Steps to Becoming a Better Communicator By David Lykken

NAMB Perspective ......................................................................20

V I S I T Company

Web Site

O U R

A Page

Agility Resources Group ...................................... www.agilityresourcesgroup.com ......................................65 AllRegs.............................................................. www.allregs.com ..........................................................60 American Financial Resources ............................ www.afrwholesale.com/partnership ....................Back Cover B2R Finance ...................................................... www.b2rfinance.com ....................................................33 Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................72 Caliber Home Loans.............................................. www.caliberhomeloans.com ............................................29 CallFurst.com ...................................................... www.callfurst.com ............................................................56 Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................27 & 62

66 Step Inside Ginnie Mae: Lowering of Mortgage Insurance Premium Good for Middle Class Families, Housing Industry By Ted W. Tozer

CMPS Institute .................................................. www.cmpslive.com ..........................................................5 Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................7 Equity Prime LLC................................................ www.equityprime.com ..........................................53 & 64 First Guaranty Mortgage Corp. ............................ www.fgmc.com ..............................Inside Front Cover & 42 HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................19 iServe Residential Lending, LLC .......................... www.joiniserve.com ......................................................17 JMAC Lending .................................................... www.jmaclending.com ..................................................31 Lending Manager .............................................. www.lendingmanager.com ............................................63 Listing Booster .................................................. www.listingbooster.com ........................................43 & 51 Lykken On Lending ............................................ www.lykkenonlending.com ............................................49 Maverick Funding Corp....................................... www.maverickfunding.com ............................................39

f contents

T G A G E

O L U M E

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

N U M B E R

An Interview With Terry W. Clemans, Executive Director of the National Consumer Reporting Association By Dave Sullivan ............................................................................28 RESPA/TILA Integration: The Rest of the Story … By Joy K. Gilpin..............................................................................30 The Long & Short: The Business of Short Sales By Pam Marron ..............................................................................32 NMP’s Economic Commentary: The Best of All Worlds Revisited By Dave Hershman ......................................................34 A Message From E. Robert Levy ................................................44 Just Ask Eric & Laura By Eric Weinstein & Laura Burke ............46 CFPB Finalizes Amendments to TILA-RESPA Integrated Mortgage Disclosure (TRID) Rule By Gavin T. Ales ............................................................................48 The Buy-to-Rent Mortgage Opportunity By Mark Mohl ............50 MBA’s Mortgage Action Alliance: A Message From MAA Chairman Fowler Williams ..................50 NAPMW Report: A Visionary Sees Light in the Darkness By Nikki Bell & Cynthia Nutter ......................................................65

COLUMNS New to Market..............................................................................12 News Flash: February 2015 ........................................................14 Heard on the Street ....................................................................40 Outstanding Places to Work ......................................................68 NMP Calendar of Events ............................................................69 NMP Resource Registry..............................................................70

D V E R T I S E R S Company

Web Site

Page

MBA-NJ/NJAMB .................................................. www.mbanj.com ..........................................................23 Midwest Mortgage Matchmaker Conference.......... www.mortgage-matchmaker.com ....................................65 Monroe Capital, Inc. .......................................... www.monroecap.net ......................................................61 Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ......................................1 NAMB+ ............................................................ www.nambplus.com ......................................................25 NAPMW ............................................................ www.napmw.org ....................................................58 & 66 NAWRB ............................................................ www.nawrb.com ............................................................67 Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................15, 41 & Inside Back Cover PB Financial Group Corp..................................... www.pbfinancialgrp.com ..............................................47 REMN Wholesale ................................................ www.remnwholesale.com ..............................................13 TagQuest .......................................................... www.tagquest.com ........................................................45 Texas Mortgage Roundup.................................... www.txmortgageroundup.com ........................................59 The Bond Exchange............................................ www.thebondexchange.com ..........................................35 The National Real Estate Post.............................. www.thenationalrealestatepost.com ..........................55, 64 Titan List & Mailing Services, Inc. ........................ www.titanlists.com ..........................................................9 Top Producer Round Table ................................ www.topproducerroundtable.com ....................................5 Ultimate Mortgage Expo .................................... www.ultimatemortgageexpo.com ......................................3 United Wholesale Mortgage ................................ www.uwm.com ..............................................................11

FEBRUARY 2015 Volume 7 • Number 2

FROM THE

Is it really all about marketing?

1220 Wantagh Avenue • Wantagh, NY 11793-2202 Phone: (516) 409-5555 • Fax: (516) 409-4600 Web site: NationalMortgageProfessional.com

This month, we are focusing on the topic of marketing. Marketing is defined by the American Marketing Association as “The activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at-large.” Now with the benefit of that definition, go forth and “market.” Oh well, the process of defining marketing is, without question, a lot easier than deciding “how” to market. In the mortgage profession, that definition needs to be revised to read “exchanging offerings compliantly,” since marketing in the mortgage profession today, without concern for compliance, may lead one to a rapid and costly exit from the profession. So with that foundation set, how does one go about marketing? I have a few ideas of my own I’d like to share:

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 Operations Manager (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

Adopt a new language and use it wisely: Digital! While the mortgage industry still has the brick and mortar model as the mainstay for the consumer, the use of the digital environment is still a gateway for many consumers to identify and reach your brick and mortar solution. Add the language of “digital” (both Internet and mobile accessible) to your brain. Use your digital footprint to establish yourself as an expert and also use your Web site to give consumers resources to help them understand the mortgage process. A local company on Long Island used to use the slogan, “An Educated Consumer is Our Best Customer.” That applies to the mortgage profession as well. Let your Web site be a soft market approach that clearly shows you are a trusted advisor and will work for the customer to not only deliver but to set the bar high to get referrals from them. The complexity of the “digital world” is not a frontier you should pursue totally on your own. Be willing to engage individuals and companies with knowledge of the mortgage profession who can assist you to improve SEO (search engine optimization) in a compliant manner. You know what you do best and the “digital” world has the experts at your disposal that will dramatically increase the success of your digital campaign. I know the Internet is filled with competition, but if you develop your “digital footprint” wisely and follow up leads, you can translate your newly acquired language “digital” into one that translates into business growth

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.

Direct mail marketing

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.

FEBRUARY 2015 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

publisher’s desk

Choose a vendor that knows the mortgage market! This is still a very valid option to add to your marketing campaign in today’s tech world. The very pages of this magazine include advertisements from direct mail companies specializing in the mortgage industry and help you reach your target audience. Don’t make the mistake of enlisting a generalist in direct mail marketing. So to answer my opening question … yes, it is all about marketing. The only difference today is the infusion of technology in marketing methods you use today. Arm yourself with the experts who can assist you with these methods and you too can answer loudly with a yes as well!

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.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S

EDITORIAL CONTRIBUTORS Featured Editorial Contributors Rocke Andrews, CMC, CRMS

John H.P. Hudson, CRMS

Editorial Contributors Gavin T. Ales

David Lykken

Gibran Nicholas

Mike Maida

K. Justin Restaino

Cynthia Nutter

Brian Sacks

Tory Tarsitano, CRMS

Ericka Smith

Bubba Mills

Marc Wayshak

Mark Mohl

Eric Weinstein

Nikki Bell

John Councilman, CMC, CRMS

Pam Marron Kelly Booth

Jonathan Foxx

Linda McCoy, CRMS Ben Brashen

Donald J. Frommeyer, CRMS

Ted W. Tozer Laura Burke, EA, MBA, MS

Andy W. Harris, CRMS

Fowler Williams Dave Hershman

Kerry Johnson, Ph.D.

Joy K. Gilpin

Diane Crosby

Scott Forman

Steve Grossman

Brent Hicks

Kelly Marsh

WEST COAST Mon., Feb. 23 Tues., Feb. 24 Wed., Feb 25 Thurs., Feb 26 Fri., Feb 27

San Ramon, CA Portland, OR Seattle, WA Scottsdale, AZ Las Vegas, NV

Gibran Nicholas

Jen Du Plessis

Craig Strent

EAST COAST Fri., March 13 Mon., March 16 Tues., March 17 Wed., March 18 Thurs., March 19 Fri., March 20

Long Island, NY Boston, MA Westchester, NY Philadelphia, PA Washington DC Baltimore, MD

NationalMortgageProfessional.com

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n National Mortgage Professional Magazine n FEBRUARY 2015

Monday-Wednesday, May 13-15, 2015 • Marina Del Rey, CA Monday-Wednesday, May 18-20, 2015 • Boston, MA

NAMB The Association of Mortgage Professionals

National Association of Professional Mortgage Women

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

2014-2015 NAPMW National Board of Directors

NAMB 2014-2015 Board of Directors OFFICERS John Councilman, CMC, CRMS—President AMC Mortgage Corporation 10136 Avalon Lake Circle l Fort Myers, FL 33913 Phone: (239) 267-2400 l E-mail: jlc@amcmortgage.com Rocke Andrews, CMC, CRMS—President-Elect Lending Arizona LLC 3531 North Pantano Road l Tucson, AZ 85750 Phone: (520) 886-7283 l E-mail: randrews@lendingarizona.net Fred Kreger, CMC—Vice President American Family Funding 28368 Constellation Road, Suite 398 l Santa Clarita, CA 91350 Phone: (661) 505-4311 l E-mail: fred.kreger@affloans.com Rick Bettencourt, CRMS—Secretary Mortgage Network 300 Rosewood Drive l Danvers, MA 01923 Phone: (978) 777-7500 l E-mail: rbettencourt@mortgagenetwork.com Andy W. Harris, CRMS—Treasurer Vantage Mortgage Group Inc. 15962 SW Boones Ferry Rd., Ste 100 l Lake Oswego, Oregon 97035 Phone: (503) 496-0431, ext. 302 E-mail: aharris@vantagemortgagegroup.com

Donald J. Frommeyer, CRMS—Immediate Past President/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

P.O. Box 451718 l Garland, TX 75045 Phone: (800) 827-3034 Web site: www.napmw.org

National President Christine Pollard (607) 226-1046 president@napmw.org

Vice President–Western Region Anna Mackovska (323) 321-2222 westernregion@napmw.org

President-Elect Kelly Hendricks (314) 398-6840 preselect@napmw.org

Secretary Cynthia Nutter (360) 258-2206 natsecretary@napmw.org

Vice President–Central Region Judy Alderson (918) 250-9080, ext. 300

Treasurer Kimberly Rozell, CME (607) 229-5008 nattreasurer@napmw.org

Vice President–Eastern Region Cathy Kantrowitz (845) 463-3011 easternregion@napmw.org

Parliamentarian Dawn Adams, GML, CMI (607) 329-4622 dawnvadams@live.com

Vice President–Northwestern Region William “Bill” Sanderson, CME, CMI (360) 713-9264

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

2014-2015 Board of Directors

FEBRUARY 2015 n National Mortgage Professional Magazine n

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DIRECTORS Kay A. Cleland, CMC, CRMS KC Mortgage LLC 2041 North Highway 83, Unit CPO Box 783 l Franktown, CO 80116 Phone: (720) 670-0124 l E-mail: kay@kcmortgagecolorado.com

Mike Brown President (908) 813-8555, ext. 3020 mbrown@cisinfo.net

Judy Ryan Director Credit Plus (800) 258-3488 judy.ryan@creditplus.com

John H.P. Hudson, CRMS Premier Nationwide Lending 1202 W. Bitters Road, Bldg. 1, Ste. 1205 San Antonio, TX 78216 Phone: (817) 247-4766 l E-mail: jhudson@pnlending.com

William Bower Vice President (800) 288-4757 wbower@continfo.com

Mike Thomas Director (615) 386-2285, ext. 285 mthomas@ciccredit.com

Maureen Devine Ex-Officio (413) 736-4511 mdevine@strategicinfo.com

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

Julie Wink Treasurer (901) 259-5105 julie@datafacts.com

Terry Clemans Executive Director (630) 539-1525 tclemans@ncrainc.org

Renee Erickson Conference Chair (866) 932-2715 renee@zipreports.com

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

Olga Kucerak, CRMS Crown Lending 328 West Mistletoe l San Antonio, TX 78212 Phone: (210) 828-3384 l E-mail: olga@crownlending.com David Luna, CRMS 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 Mortgage Team 1 Inc. 6336 Piccadilly Square Drive l Mobile, AL 36609 Phone: (251) 650-0805 l E-mail: linda@mortgageteam1.com Valerie Saunders RE Financial Services 13033 West Lindburgh Avenue l Tampa, FL 33626 Phone: (866) 992-0785 l E-mail: valsaun@gmail.com John Stevens, CRMS Bank of England d/b/a ENG Lending 11650 South State Street, Suite 350 l Draper UT 84062 Phone: (801) 427-7111 l E-mail: jstevens@englending.com

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

Scott Ledbetter Director (801) 375-5522 sledbetter@propertysolutions.com

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How Top Producers Create Value By Gibran Nicholas Everybody talks about "creating value.” It's an overused buzz-phrase in the mortgage industry and the business world in general. But what does it actually mean? Specifically, what does it mean to "create value" in today's mortgage environment? Here are three specific tactics I've observed from top producers who create unique value in today's mortgage industry: 1. Understand what the other person values Most mortgage originators propose value (sell solutions) to borrowers, real estate agents and financial advisors without first understanding what the other person values. For example, your value proposition to a financial advisor may be, "I can send you referrals." However, what if the financial advisor doesn't really care about that at the moment? What if the financial advisor's main issue right now is creating a competitive advantage vs. the full-service financial company that just opened next door? In that case, a top producer would likely change his/her value proposition to something like, "I can help you protect your clients from being poached by the new financial services company that just opened next door." Top producers make it a habit to understand what the other person really wants before offering to give it to them.

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2. Don't be generic A value proposition is nothing more than a proposal of value. Not everyone values the same things. So why be generic and propose the same value to everyone you talk to? Top producers understand that it's not so much about an "elevator pitch," but it's more about an "elevator question.” What's the number one challenge that the person you're speaking with is facing at this particular moment in time? The specific solution to THAT specific challenge is your new value proposition for that person. 3. Be creative: Leverage your relationships One top producer I know recently started doing homebuyer employee benefit workshops with a builder she works with. She discovered a need in her market: A new company is moving into town and relocating people from out of the area. She leveraged her existing relationships: A builder friend is building new homes in the area where the new company is relocating. She creatively used her resources to meet the need: help the new company relocate employees by offering education and incentives with the builder. Your relationships are your biggest asset. Leverage them in the way you create value. Gibran Nicholas is the founder, chairman and CEO of CMPS Institute and Top Producer Round Table Series—TopProducerRoundTable.com. Since 2005, he's helped more than 7,000 of America's top loan originators to grow sales and improve their relationships. He may be reached by phone at (888) 608-9800, e-mail gibran@CMPSInstitute.org or visit CMPSInstitute.org.

THE

elite performer Wants vs. Needs By Andy W. Harris, CRMS

s commissioned sales profession- “To be happy in life, you als, we are al- must learn the difference ways prospecting between what you want and looking for new clients while retainvs. need.” ing existing clients for any future trans—Rita Ghatourey actions and referrals. I’ve always been interested in watching different mortgage loan originators (MLOs) in our industry and what different behaviors create success or failure. Over the years, I’ve found that there are certainly similarities between those that thrive and those that struggle, but none more than the confidence portrayed on wanting the business versus needing the business. A need is something you have to have, but a want is something you would like to have. The challenge in a commissioned- or performance-based career is that most people are usually on one end of the spectrum or another. Some bounce back and forth, but when production is down or if an MLO is struggling, they find themselves needing the new business to survive or continue down the same career path chosen. Unfortunately, when your balance sheet controls you and not vice versa, some bad habits can further negatively impact your chances for success. If you have struggled in the past or present, here are a few things to be aware of and look out for if becoming a needy MLO:

l Behavior when interacting with clients can come across with a feeling of anxiety or desperation, reacting unprofessionally to objections or not remaining relaxed and professional. l The level of confidence can be low due to the financial stress experienced or negative thoughts about the future. l There is unfortunately an elevated level of risk for some that could result in unethical and possibly even illegal activities motivated by desperation. l These behaviors can develop added stress and continue to worsen the situation by turning off potential prospects, among other significant issues for the future and integrity of our industry. So what can you do to make sure you’re an MLO that is motivated more by wanting the business over needing the business? Well, the first step of course is to get your financial life in order and have a marketing and follow up plan to build and sustain new clients. Having control over your balance sheet will help you be more confident and professional, while hopefully maintaining strong integrity levels. Simply control and prioritize your wants by not being controlled by your needs.

A production of

SPONSORED EDITORIAL

Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and 2010-2011 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 www.vantagemortgagegroup.com.

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Get Your Year in Gear: How to Create a Business-Winning Plan for 2015 in One Hour By Bubba Mills

aloney! That’s what I say to those who think building a business plan should take days, weeks or even months. And I say baloney again to those who think a plan has to have a bunch of pages with graphs and charts. I know for a fact mortgage brokers don’t have that kind of time. But I also know every serious broker needs a good plan. That means if you’re reading this, you’re in the right place. Stick with me and you’ll end up with a plan that can make your 2015 a much better year. A comprehensive business plan (two pages max) can help you: l Account for what you accomplish during 2015 l Clarify your life l Keep track of each of your goals l Manage your time l Determine if you’re heading in the right direction So let’s get right to it. Here are the

steps to take to get your plan in place and your year (and rear) in gear:

Create a mission statement

savvy. For weaknesses perhaps you’re unorganized. With opportunities it could be that a large firm is relocating to your city. And for threats, maybe interest rates are rising. Take 10 minutes now and fill in a few items for each category. If you get stuck, ask a co-worker or friend, who knows you well enough, for suggestions.

This gets right to the heart of your life and addresses why you’re in mortgage business. It answers why you’re here, what your purpose is and what your busi“Stick with me and ness is truly Write your about. Use posbusiness you’ll end up with a itive, present objectives tense stateIn this section, plan that can make ments such as I’d like you to “I am,” “I proconsider what your 2015 a much vide,” and/or “I you want your strive” as you business to look better year.” define who you like in the are and what short-term, six you provide your clients. Take 10 min- months; in the mid-term, one year; utes now to brainstorm some possible and the long-term, five years. Also, mission statements. in this same section, write your personal objectives. We cannot be balPerform a SWOT anced in life if all we focus on is analysis (Strengths, business so consider what your ideal Weaknesses, situation would look like with your Opportunities and family, your spiritual life and your Threats) social life. Spend 10 minutes now on For strengths, maybe you’re tech these topics.

Create your sales goals Here’s where I don’t want you to be afraid to think bigger. Take 15 minutes here for this section. As part of this segment, here at Corcoran Consulting and Coaching Inc., we include what’s called a goal achievement system that helps you stay on track with your goals. So for each goal, we include a why, excuses for failure, resolve and action items. I believe this is a vital step because it allows you to examine why you might hesitate in completing parts of your business plan.

Develop action items To wrap up your plan, you need to get specific about how you’ll achieve your goals. So for each goal you should have action items, due dates, who will complete the items and a step-by-step daily and hourly plan with what has to be done. Take 15 minutes and do it. Bubba Mills is executive vice president of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 957-8353 or visit www.corcorancoaching.com.

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CREATED FOR YOU.

United Wholesale Mortgage Launches New LOS

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United Wholesale Mortgage (UWM) has announced that it officially launched a completely new loan origination system (LOS) loaded with features and tools for brokers and correspondents. The proprietary technology replaces UWM’s previous LOS and offers many benefits for its broker and correspondent partners. UWM built the solution from the ground up using its in-house team of more than 150 IT professionals. The completely customized technology called EASE took almost a year to develop, test and implement, which UWM says is a testament to its unwavering commitment to excellence. “Making it incredibly easy to partner with us is a huge focus at UWM,” said Mat Ishbia, president and CEO at UWM. “We spent significant time and money to develop this technology, which was done exclusively to benefit our brokers and correspondents. We want to be the most service-focused wholesale lender in the country. Leveraging state-of-theart technology is a big part of the value we deliver to our partners.” EASE allows brokers to effortlessly use drag and drop technology throughout the site. This feature is used to deliver FNMA 3.2 files and other various documents, which auto populate into EASE’s proprietary product and pricing engine, Easy Qualifier (EQ), thus saving tremendous amounts of time. EQ qualifies and provides live pricing on multiple programs while simultaneously providing UWM’s brokers and correspondents with the ability to instantly give their borrowers the best possible options. With the click of a button, the broker can select the product, MI and calculate the interest rate. They are empowered to pull DU or LP which instantly provides an automated underwriting decision. Pipeline management, date tracking and lock expiration alerts are also provided on an easy-to-read dashboard. “We didn’t want to just purchase a commercially available loan origination system, as many of today’s systems fall short from the high expectations of

UWM. We attempt to always deliver above and beyond technology and the only way to do that was to build it ourselves,” said Justin Glass, chief digital officer at UWM. “We feel that this is the most advanced mortgage-based technology solution and is head and shoulders above other wholesale lenders, giving our partners an unparalleled competitive advantage.” Along with the launch of EASE, UWM also concurrently rolled out a new corporate website to reflect its new branding identity, which places a strong emphasis on the company’s corporate culture that treats its clients as longterm, highly valued partners.

REMN Wholesale to Offer Fannie Mae 97 Percent LTV Loans and New Incentives

REMN Wholesale has announced that it will begin offering loans under the Fannie Mae 97 percent LTV program. In line with REMN Wholesale’s commitment to quality in the modern housing industry, these loans will allow mortgage brokers a very relevant option as they broaden their ability to source products for responsible buyers by offering a very affordable downpayment scenario. Offering Fannie Mae 97 percent LTV mortgages is a natural step for REMN in providing brokers with the best tools and resources to see success in the current housing landscape. REMN Wholesale has teams of account executives strategically located across the country, management hubs on both coasts and a dedicated help desk team. In addition to being one of the leaders in renovation lending, the company received numerous industry accolades in 2014 as a result of its commitment to providing the ideal broker experience. “REMN Wholesale’s overall mission is to make the mortgage experience as easy as possible for qualified borrowers

every step of the way. In addition to offering the best possible mortgage products, it’s incredibly important that the brokers are supported by a team committed to helping ensure the best possible experience for everyone involved,” said Carl Markman, director of national sales for REMN Wholesale. “We’re offering the Fannie Mae product at just three percent down because we’ve seen before that there are creditworthy borrowers out there who are more than capable of making their mortgage payments, but haven’t had the time yet to accrue the necessary down payment to get the process started.” REMN Wholesale has also announced multiple pricing specials in January, including 0.625 for VA fixed rate high balance submissions over 720 FICO, 0.375 for VA fixed rate for conforming submissions in select states and 0.25 for all conventional submissions over $200,000 with a 720-739 FICO score, in addition to many others.

Credit Plus Partners With AccountChek on Verifications of Deposits and Assets

Credit Plus has announced that it will be offering instant, electronic Verifications of Deposits and Assets (VODAs) through AccountChek, a provider of automated deposit and asset verifications. This fast and secure system is changing the traditional mortgage verification process. “Say goodbye to the paper chase,” said Greg Holmes, national director of sales and marketing for Credit Plus. “Lenders will no longer need to manually gather print copies of an applicant’s bank statements.” Electronic verification of deposits and assets has been approved by both Fannie Mae and Freddie Mac. Each organization recently revised its guidelines to allow acceptance of electronic, third-party VODAs. “By partnering with AccountChek,

we’re able to provide lenders with deposits and assets verification right away,” Holmes said. “Not only does it save time, but because data is provided directly from financial institutions, the risk of fraud is virtually eliminated.” The system is simple and can be accessed by smartphones, tablets or computers. Lenders quickly receive a report that contains the necessary account documentation. Lenders have the ability to re-pull reports for up to 90 days. “Electronic VODAs help instill confidence that lenders are meeting the Ability-toRepay Rules and have accurate data for underwriting decisions,” said Holmes.

MBA Education Launches New Initiative for College Students MBA Education has announced the launch of Mortgage Banking Bound, a program designed to educate college students about the mortgage banking industry and job opportunities in the loan-process cycle. By enrolling through MortgageBankingBound.com, students can access “Careers in Mortgage Lending,” a six-lesson, instructor guided online course designed to familiarize them with the residential mortgage lending industry starting on Feb. 10. Upon successful completion of the course, students will be awarded a certificate recognized by MBA. Community college and university administrators can also use the site to find out more information about Mortgage Banking Bound. “Real estate finance is a dynamic $13 trillion industry and companies in this field will need new and diverse talent to meet growing demand,” said Jeffrey M. Schummer, MBA’s vice president of education development. “Mortgage Banking Bound will help educational institutions translate academic excellence into productive careers for their students.” Mortgage Banking Bound will offer students attending community colleges

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EWSFLASH l FEBRUARY 2015 l NMP NEWSFLASH l FEBRUARY 2015 NMP NEWS SEC Reaches Agreement With S&P on Misleading CMBS Ratings

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New York State Attorney General Eric T. Schneiderman has joined the U.S. Securities & Exchange Commission (SEC) and the office of the Massachusetts Attorney General in announcing a settlement with Standard and Poor’s Financial Services LLC regarding false and misleading statements made by S&P in connection with its rating of certain commercial mortgage-backed securities (CMBS). From February 2011 to July 2011, S&P loosened the criteria it applied to rate eight CMBS, failed to disclose this fact to investors, and misled market participants into thinking that the ratings for their investments were based on more conservative assumptions than was actually the case. As a result of Attorney General Schneiderman’ s investigation, S&P has agreed to pay New York a penalty of $12 million and to cease and desist from committing violations of the Martin Act and Executive Law § 63(12). Massachusetts will receive $8 million in penalties; while the SEC will receive $35 million in penalties, as well as $7 million in disgorgement and interest for these eight CMBS ratings. Finally, S&P has agreed to refrain from rating any new U.S. CMBS conduit/fusion transaction for a period of 12 months. The SEC has also resolved two other matters related to S&P. In all, nearly $80 million in settlement agreements were announced today between S&P and the three government entities. “In the wake of the housing crisis and the collapse of the global economy, credit agencies like S&P promised not to contribute to another bubble by inflating the ratings on products they were paid to evaluate. Unfortunately, S&P broke that promise in 2011, lying to investors to increase their profits and market share,” said Attorney General Schneiderman. “Today’s joint

actions are an unprecedented effort to hold a ratings agency accountable for upholding its basic responsibility—to provide rigorous and honest ratings to investors. I thank the SEC and the Massachusetts Attorney General’s office for their terrific work in this case.” As part of the settlement, S&P admitted specific facts concerning its misrepresentations and omissions in connection with its rating of CMBS. In the aftermath of the 2008 financial crisis, S&P represented to investors that it had tightened the standards it used to provide credit ratings, and had adopted strict analytical independence that was free from commercial considerations. Between February and July 2011, in connection with its ratings for eight “conduit/fusion” CMBS, S&P publicly told investors that its ratings were based on specified, conservative criteria for calculating the debt service coverage ratio, an important factor that relates to the protection afforded to investors. S&P was paid approximately $7 million to rate and conduct surveillance on six of those transactions. However, contrary to its representations, S&P departed from its published criteria and calculated the debt service coverage ratio, a key component in determining credit ratings, in a manner that was less conservative, provided less investor protection, and made its ratings more attractive to fee-paying issuers. As such, S&P misled market participants into thinking that the ratings for their investments were better and that their investments had more protection than was actually the case. Investors depend on the credit ratings issued by credit rating agencies, including those issued by S&P, in making decisions relating to buying and holding investments such as CMBS. S&P’s statements regarding its ratings for the eight CMBS at issue were false and misled investors. If S&P had used the criteria it disclosed to investors, it would have afforded additional protection to those investors.

Applications for New Home Purchases Drop in December The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for December 2014 shows mortgage applications for new home purchases decreased by 0.4 percent relative to the previous month. This change does not include any adjustment for typical seasonal patterns. By product type, conventional loans composed 70.8 percent of loan applications, FHA loans composed 15.3 percent, RHS/USDA loans composed 1.2 percent and VA loans composed 12.7 percent. The average loan size of new homes increased from $306,975 in November to $311,398 in December. The MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 409,000 units in December 2014, based on data from the BAS. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. The seasonally adjusted estimate for December is an increase of two percent from the November pace of 401,000 units. On an unadjusted basis, the MBA estimates that there were 28,000 new home sales in December 2014, unchanged from November. MBA’s Builder Application Survey tracks application volume from mortgage subsidiaries of home builders across the country. Utilizing this data, as well as data from other sources, MBA is able to provide an early estimate of new home sales volumes at the national, state, and metro level. This data also provides information regarding the types of loans used by new home buyers. Official new home sales estimates are conducted by the Census Bureau on a monthly basis.

CFPB Charges Wells Fargo and JPMorgan With RESPA Violations

The Consumer Financial Protection Bureau (CFPB) has joined forces with Maryland Attorney General Brian Frosh against banking titans, Wells Fargo and JPMorgan Chase, charging them with violating the Real Estate Settlement Procedures Act (RESPA) by running an illegal kickback scheme in conjunction with the now-defunct Genuine Title. In proposed consent orders filed today in federal court, the CFPB and Frosh’s office are seeking $24 million in civil penalties from Wells Fargo, $600,000 in civil penalties from JPMorgan Chase, and $10.8 million in redress to consumers whose loans were involved in this scheme. Also being charged is Todd Cohen, a former Wells Fargo loan officer, along with his wife Elaine Oliphant Cohen. Under the proposed consent orders, they would be required to pay a $30,000 fine. According to the CFPB, Genuine Title was a Maryland-based title company that offered real-estate-closing services that went out of business in April 2014. The agency accused the companies of operating a marketing-services-kickback scheme, where Genuine Title offered loan officers services that resulted in an increased amount of loan business. Genuine Title allegedly purchased, analyzed and provided data on consumers and even went so far as to generate letters with the banks’ logos that it then mailed to prospective borrowers. The banks, in turn, referred homebuyers to General Title for its closing services. Such actions violated RESPA provisions against a “fee, kickback, or thing of value” in exchange for referrals related to a real-estate-settlement service. Todd Cohen was employed by Wells Fargo between April 2009 through August 2010, and the CFPB accused him of taking “substantial cash payments in exchange for referrals.” Elaine Oliphant Cohen was charged in participating in a subterfuge by receiving payments from Genuine Title that were destined for her husband for his referrals. The CFPB and Frosh are also

seeking to have Todd Cohen banned from mortgage banking for two years. “Today, we took action against two of the nation’s largest banks, Wells Fargo and JPMorgan Chase, for illegal mortgage kickbacks,” said CFPB Director Richard Cordray in a statement issued by his office. “These banks allowed their loan officers to focus on their own illegal financial gain rather than on treating consumers fairly. Our action today to address these practices should serve as a warning for all those in the mortgage market.” “Homeowners were steered toward this title company, not because they were the best or most affordable, but because they were providing kickbacks to loan officers who referred consumers to them,” said Maryland Attorney General Brian Frosh. “This type of quid pro quo arrangement is illegal, and it’s unfair to other businesses that play by the rules.”

vey from Jan. 12-21, 2015, with the help of The Five Star Institute. It was distributed to a diverse group of mortgage industry leaders. The mortgage and housing professionals surveyed represent various originators, lenders, servicers and other industry participants.

FHA Issues Reverse Mortgage Foreclosure Solution Policy The Federal Housing Administration (FHA) has issued Mortgagee Letter 2015-03 under its Home Equity Conversion Mortgage (HECM) Program giving FHA-approved

lenders the option to delay calling HECMs with eligible ‘non-borrowing spouses’ due and payable. A delay would postpone foreclosure normally triggered by the death of the last surviving borrower. FHA’s new guidance will allow reverse mortgage lenders to assign eligible HECMs to HUD upon the death of the last surviving borrowing spouse, thereby allowing eligible surviving spouses the opportunity to remain in the home despite their non-borrowing status. Last year, FHA amended its HECM policies to allow for the deferral of foreclosure, or ‘due and payable status’ for certain Eligible Non-Borrowing Spouses for case numbers assigned on or after Aug. 4, 2014. Today’s action allows

lenders to offer similar treatment for eligible HECMs and Eligible NonBorrowing Spouses with FHA case numbers issued before Aug. 4, 2014. Under the FHA’s new policy, lenders will be allowed to pursue claim payments for HECMs with Eligible Surviving NonBorrowing Spouses and Case Numbers assigned before Aug. 4, 2014 by: Allowing claim payment following sale of the property by heirs or estate; foreclosing in accordance with the terms of the mortgage, and filing an insurance claim under the FHA insurance contract as endorsed; or electing to assign the HECM to HUD upon the death of the last surviving borrower, where the HECM would not othercontinued on page 16

Survey Finds the Majority Doubts Obama’s Housing Plan

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A new survey, the Collingwood Mortgage Outlook Report for February, finds that mortgage and housing industry professionals believe President Obama’s recent announcement to reduce the price of FHA annual premiums will have a minimal impact on the size of the home purchase market. The White House says the President’s plan to reduce fees, which the FHA charges borrowers, is designed to help jump-start the housing market. But 47 percent of respondents to the report say that President Obama’s estimate that 250,000 new mortgage borrowers will be added as a result of a reduction in the FHA annual premium is “too high,” while only 34 percent said it is “on the mark” and 19 percent said it is “too low.” In addition, approximately 25 percent of respondents opined that this announcement was more of a political move by the Obama Administration than a major change in the market. They said the impact, while positive, will be minimal. Respondents also were harsh on the FHA, with 55 percent agreeing with JP Morgan Chase CEO Jamie Dimon who late last year said, “The real question for me is should we be in the FHA Business at All.” One lender who agrees with Dimon expressed that, “FHA has turned into a minefield for lenders and (mortgage) servicers. False Claims Investigations placed first on the survey’s list of the most concerning type of FHA monitoring and associated enforcement actions. On a brighter note, 80 percent of survey respondents believe business will get better this spring. This is the most positive response since Collingwood began collecting this data in September of last year. Several respondent pointed to lower mortgage rates to explain their positive outlook. Most people surveyed agreed the rates will continue to be relatively low for the foreseeable future. Data was collected via an online sur-

Marketing for FHA-MIP-REMOVAL

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We all want quality leads right? Why is it so hard to find them? Its high tide again on FHA streamlines and now is the best possible time to capitalize. Here’s what top companies around the country are doing to close FHA streamlines with the new guidelines in place. With as much as 97 percent of the population on the Do-Not-Call List, it’s becoming increasingly difficult to generate leads via telephone. Until 2013, telemarketing was a major contributor to the mortgage industry. Telemarketing was used to generate interest and also to verify leads and ensure accuracy. With the new Telephone Consumer Protection Act (TCPA) guidelines in effect since 2013, telemarketing is much less cost-effective, and in some cases, it’s even illegal. Internet leads are losing their luster. Somehow it’s become almost impossible to find an Internet lead that will close any higher than five to 10 percent. Even if you are paying for premium leads, there’s a good chance they are being generated or sold by a company that’s also a licensed originator. It’s no wonder they don’t work as well as they used to. You used to buy them from lead generators. Now you’re buying them from direct competitors. So here’s the tip that all the nation’s leading marketers don’t want you to know: Direct mail and trigger leads are working better than ever. Go back to direct marketing and you’ll close more loans. Send a letter to everyone that matches the new guidelines for the new FHA streamlines and call the small percentage of them that still allow it. One hundred phone calls will produce at least one closed loan on the books. One thousand letters will produce at least one closed loan on the books. Get the data, decide how you want to market to it, and get to work. Companies started marketing for the new FHA guidelines before the new guidelines were even announced. So if you’re just getting back into it, hurry up. There’s plenty of business to be had. Make sure your marketing director knows the right qualifications you need and let them go to work for you! TagQuest Inc. customer spotlight … Zack M., a Nevada mortgage lender Each month, we talk with our clients to see how their campaigns are performing. Here’s what we heard from Zack M., a Nevada mortgage lender. l Marketing method: Direct mail l Volume: 14,000 pieces dropped bi-weekly l Results: 0.85 percent response rate (30 percent application rate on inbound calls) Highlights of the campaign that work well for you “Ease of the process. Everything from ordering to taking calls takes little effort on my part. Even the free tracking helps ease the time tracking down information. It has been that way for two years now.” Highlights of the campaign that you think might appeal to others in your industry “One-stop shopping with proven results. Would recommend this to anyone.” Based in Medford, Ore., TagQuest Inc. is a full-service marketing firm developed throughout the ever-changing mortgage industry. Utilizing industry knowledge, marketing expertise, and technology we implement any or all aspects of your marketing and/or advertising campaigns. With a proven track record, more than 10 years in business, and decades of experience TagQuest knows what it takes to produce unprecedented results in today’s fast-paced mortgage environment. For more information, call (888) 7178980 or visit www.tagquest.com.

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nmp news flash continued from page 15

wise be assignable to FHA. existing-home sales declined 3.1 percent By electing the Mortgagee Optional and prices rose 5.8 percent. Election Assignment, lenders will be permitted to modify their FHA mortgage Discover Home Loans Poll: insurance contracts to permit assignment Technology Has Improved of an eligible HECM to HUD despite the the Homebuying Process HECM being eligible to be called due and With interest payable as a result of the death of the last rates still comsurviving borrower. paratively low and the 2015 Pending Home Sales homebuying season about to Slow in December begin, many buyers are turning to technology to make the homebuying process easier. A poll commissioned by Discover Home Loans found that nine out of 10 survey respondents used some sort of online technology to help them with the home Despite interest rates being at their lowest financing process. Eighty-one percent said level of 2014, pending home sales cooled that technology made it easier to share in December, but remained above year- financial information with their lender over-year levels for the fourth consecutive and 69 percent said it helped them keep month, according to the National track of important financial documents. Association of Realtors (NAR). All major Thirty-six percent of homebuyers said regions experienced declines in December. that completing the entire financing The Pending Home Sales Index (PHSI), a process online with no phone calls or inforward-looking indicator based on con- person meetings would make the process tract signings, decreased 3.7 percent to easier. However, the majority still prefer 100.7 in December from a slightly down- to have a relationship with their mortgage wardly revised 104.6 in November, but is banker: 6.1 percent above December 2013 (94.9). l Nearly all homebuyers surveyed comDespite last month¹s decline (the largest municated with their lenders by since December 2013 at 5.8 percent), the phone, 94 percent, or email, 88 perindex experienced its highest year-overcent, while 67 percent of respondents year gain since June 2013 (11.7 percent). met in person. Lawrence Yun, NAR chief economist, l Among those who used electronic says fewer homes available for sale and a communications, 68 percent felt it slight acceleration in prices likely led to made it easier to work with their December¹s decline in contract signings. lenders. “Total inventory fell in December for l More than half, 54 percent, filled out the first time in 16 months, resulting in their mortgage application online. fewer choices for buyers and a modest “As technology continues to become an uptick in price growth in markets through- integral part of our daily lives, it’s only natout the country,” Yun said. “With interest ural that buyers also use it to make the rates at lows not seen since early 2013, the home financing process easier,” said TJ strength in existing-sales in upcoming Freeborn, senior manager of customer months will largely depend on the willing- experience at Discover Home Loans. “Not ness of current homeowners to realize only are homebuyers using the Internet to their equity gains from the past couple look at homes and neighborhoods, years and trade up. More jobs, increasing they’re also using it to submit documents consumer confidence, less expensive and complete applications online.” mortgage insurance and new low down Four out of five homebuyers submitpayment programs coming into the mar- ted documents electronically to a lender, ketplace will likely lead to more demand real estate agent or at closing. Of those, from first-time buyers.” nine out of 10 say it was easy to do and The PHSI in the Northeast experienced saved time. Also, recent homebuyers felt the largest decline, dropping 7.5 percent secure submitting documents virtually. to 82.1 in December, but is still 6.3 percent Eighty-six percent felt comfortable sharabove a year ago. In the Midwest, the ing personal and financial information index decreased 2.8 percent to 97.1 in electronically with their lenders. December, but is 1.9 percent above Homebuyers who used online tools to December 2013. Pending home sales in submit documents said it saved time (92 the South declined 2.6 percent to an index percent), helped them stay organized (83 of 116.6 in December, but are 8.6 percent percent), and cut down on paperwork (68 above last December. The PHSI in the West percent). fell 4.6 percent in December to 94.0, but is l More than 70 percent of homebuyers 6.3 percent above a year ago. submitted lender documents through Total existing-homes sales in 2015 are e-mail, an app or a Web site. forecast to be around 5.26 million, an l Almost half, 47 percent, were preincrease of 6.6 percent from 2014. The qualified for a mortgage through a national median existing-home price for lender’s site. all of this year is expected to increase between four and five percent. In 2014, continued on page 33

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Lead Your Mortgage Sales Team to Greater Success By K. Justin Restaino Over and over again, we hear about the importance of great leadership. But what does this mean exactly? It seems that successful leadership is often difficult to characterize. However, more often than not, one key trait that great leaders have is the ability to engage effectively with their team members. If you’re a team leader who would like to improve in this regard, try the following: 1. Regularly communicate Make an effort to touch base with every member of your team on a regular basis. In doing so, you’ll be able to nip problems in the bud quickly, foster stronger relationships, and keep your team members aligned with your strategic goals. 2. Offer feedback While feedback in an annual performance review is useful, don’t make the end of the year the only time you discuss performance issues with your team. For example, if someone surpasses his or her sales goals, acknowledge their success. Likewise, if you have a team member who could have handled a sale better, provide them with constructive criticism. By providing regular feedback, you’ll coach your team to greater victories. Also, you’ll be able to prevent the fallout that typically occurs when a weakness is addressed for the first time in an annual review.

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3. Foster camaraderie Avoid creating a competitive, cutthroat environment. While you want the people working for you to be highly motivated, you don’t want to create unpleasant working conditions that lead team members to undermine each other. Instead, focus on achieving a common vision through supportive behavior. 4. Value all of your team members Not only do you want to value your top performers, but you also want to recognize the contributions of newcomers and administrative staff—these people have much to contribute to the organization. And when they feel appreciated, they’re far more likely to try to help you achieve your strategic vision. When you’re trying to lead your team to higher sales, it’s important to effectively engage with your team members by communicating often, providing valuable feedback, fostering a supportive environment, and appreciating others. In doing so, your mortgage sales team will unite around its goals and experience even greater success. K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For more than 15 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. He may be reached by phone at (800) 544-8060, ext. 204 or e-mail justin@titanlists.com.

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and universities the chance to learn from real estate finance industry experts, network with leading organizations, and access the latest industry information, job boards, career events, and educational offerings with an MBA Student Membership. Qualified applicants from diverse backgrounds will be able to apply for a $250 educational scholarship through MBA Education’s special Career Connections Scholarship Program.

Keep Launches to Manage Post-Closing Marketing Keep, a new post-close marketing tool for real estate and lending professionals, has launched, providing a unique automated solution for keeping in touch with clients after they close on their home purchase. Keep provides homeowners regular financial updates about their homes and mortgages. This allows the homeowners to make the best decisions about refinancing or selling. Keep also helps real estate professionals to capture repeat business by notifying them when their clients may be back in the market. “One of the biggest missed opportunities for real estate and mortgage professionals is getting repeat business and referrals from past clients,” said Robert Reich, founder and chief executive officer of Keep. “Traditional post-close marketing doesn’t garner effective loyalty or notify the professional when their client is ready to act. Keep provides those professionals with an elegant solution.” Keep generates and sends reports to homeowners including valuable data about their home value, equity, mortgage balance and interest rate, and recent sales in their neighborhood. Keep data is easy to read and understand, presenting information that every homeowner needs to know. Each e-mail is branded to the real estate professional in an effort to demonstrate a professional brand as well as helping him or her to stay top of mind for future transactions and referrals. In addition, Keep uses behavior tracking technology to give valuable information back to the real estate professional. “Keep provides the only automated post-close marketing for the real estate and mortgage industries that is based on custom data tailored specifically for each recipient,” said Reich. “This not only helps your past clients remember you for next time, but also helps increase referrals to others. What’s different about Keep is the custom data that makes for relevant content every time, substantially increasing the odds

your client will open the email and appreciate you for sending it.”

Arch MI Set to Launch Arch Mortgage Guaranty

Arch MI, Arch Capital Group Ltd.’s U.S. mortgage insurance (MI) operation, has announced the launch of Arch Mortgage Guaranty Company (AMG), a mortgage insurance company specifically created for mortgage loans that originators intend to retain in their portfolios or include in private securitizations. AMG has been issued a new insurance financial strength (IFS) rating of ‘A3’ by Moody’s Investors Service, representing their highest IFS rating within the U.S. mortgage insurance industry. “Arch MI is very pleased to announce the launch of our newest mortgage credit enhancement solution, Arch Mortgage Guaranty, and its ‘A3’ IFS rating from Moody’s Investors Service,” said David Gansberg, president and chief executive officer of Arch MI. “Arch MI continues to provide unique and innovative mortgage insurance solutions to our customers, including the first and only master policy offering ‘Day 1’ rescission relief. AMG provides yet another solution to support our customers’ product expansion in today’s evolving mortgage marketplace and positions us to support our customers’ goals of expanding homeownership opportunities.” AMG is a separately capitalized entity and not subject to GSE requirements. AMG is uniquely positioned to insure various types of prime, standard and non-standard mortgages, including jumbo, non-qualified mortgage (QM) and portfolio mortgages on an individual, bulk, or pool basis. With AMG’s highest Moody’s IFS rating in the U.S. mortgage insurance industry, its unique master policy offering the opportunity for ‘Day 1’ rescission relief without the need for the borrower to make 12 consecutive payments, and the ability to insure a wide range of mortgages, Arch MI brings another superior and innovative value proposition to the mortgage insurance marketplace.

Zillow Set to Launch Zillow Pro for Brokers Plus Zillow Inc. has announced that the Zillow Pro for Brokers program will be launching a new version in 2015: Zillow Pro for Brokers Plus. Brokerages that send Zillow their listings directly will be able continued on page 30

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www.HomeBridgeWholesale.com This is a business-to-business communication provided for use by mortgage professionals only and is not intended for distribution to consumers or other third parties. It is not an advertisement; as such term is defined in Section 2 26.24 of Regulation Z. Product information is subject to change without notice. HomeBridge Wholesale is a division of HomeBridge Financial Services, Inc. NMLS #6521 ÂŠ HomeBridge Financial Services, Inc. All rights reserved.

n National Mortgage Professional Magazine n FEBRUARY 2015

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NAMB PERSPECTIVE The President’s Corner: February 2015 Last month was a blur of activity for me. There was so much regulatory and industry action that often I had to juggle a conference call with an industry affiliate or member at the same time. I’m not complaining. I’m glad people are realizing how important NAMB— The Association of Mortgage Professionals is to their livelihood and

to the industry in general, even to our economy. I write many articles, moderate LinkedIn and am editor of “News From NAMB.” Last week alone, I did interviews with The Wall Street Journal, The New York Times and other major news outlets. NAMB is on the forefront, supporting you tirelessly. The only part that confuses me is when I get an e-mail or call telling me how NAMB should work on this or that.

The CEO Perspective A Message From NAMB CEO Donald J. Frommeyer

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In all of my years with NAMB, I have probably written 70-plus articles for you in the pages of National Mortgage Professional Magazine. Calculate that along with my 52 issues a year of The Monday Morning Messenger and I got to believe that is way over 300 written articles. So trying to come up with something for all of you I just wanted to again maybe fill you in with some information and get you to think about what all of the Board Members of NAMB are doing for you. The amount of hours that your Government Affairs team is putting in on behalf of the industry is overwhelming. And the one item that you need to

know is that they are really smart people. Rick Bettencourt, your Government Affairs Committee chair and Fred Kreger and Valerie Saunders, your Government Affairs Committee vice chairs, are intelligent, creative, forward-thinkers and very much into their positions. They work very tedious hours for you, the NAMB member. They want to make sure that you, the member, are fully aware and fully informed about what is going on in Washington, D.C. You have Kay Cleland, the Membership Committee chair that eats, drinks, sleeps and promotes NAMB every minute of every day. She goes over and beyond her normal duties to make sure that you, the member, are aware of all of the membership benefits

Why Do I Need NAMB? l NAMB Testifies Before Congress l NAMB Works With the CFPB l NAMB Participates in Multiple Regulatory/CFPB Panels l NAMB Webinars l Full-Time NAMB Lobbyist on Capitol Hill l NAMB Protects Your Business l NAMB Forms Industry Coalitions l NAMB Education

For detailed information, visit www.namb.org.

The person is full of opinions and ideas that often have a lot of merit. Then, I look on the NAMB membership roster and find that person isn’t even a member of the association. How silly is that? NAMB membership is so cheap that everyone in the mortgage business should be a member. We need membership to support NAMB financially, but membership means much more than that. When we go to Congress, they always ask how many members NAMB has. While our membership is currently in the thousands, there are more than 100,000 licensed originators in the United States alone. If every-

one became a member of NAMB, we could easily level the playing field. If you already are a member, I thank you. Please go out and recruit some new members so we can truly serve you better. If you are not a member, there is no better time than now to go to www.namb.org and become one today.

that are available to you. She works with these companies to make sure that you, the member, can use these companies to make your life better and easier. You can also say that NAMB+ is running very smoothly and that is because NAMB+ President John Stevens is out there with his Board trying to get companies to offer you and your companies programs and benefits to be successful. His Board consists of NAMB Board Members Don Frommeyer, Linda Hudson, Fred Kreger, and NAMB+ Committee members Nathan Pierce, George Burkley, Laurie Christiansen, Kelly Hamilton and Joel Berman (from National Mortgage Professional Magazine). They are joined by the NAMB Legal Council Ryan Riesterer. They are always looking for companies that can offer products and services that can make your life easier and more productive. To complete the people on the NAMB Board of Directors, you have President-Elect Rocke Andrews, who also serves as NAMB Education Committee chair; Andy W. Harris, who is your Treasurer and the By-Laws Committee chair; you have Olga Kucerak, NAMB director who also helps chair the Legislative Conference and serves on four other NAMB committees; Linda McCoy, who is heavily involved as a regional vice chair for the Membership Committee and serves on three other NAMB committees; John Hudson, NAMB director, who serves on two committees and is the Communication Committee chair; David Luna, who serves as NAMB Education Committee vice chair and on three other committees. The final board member who keeps it all together is John Councilman, your NAMB president. He has replaced me in some of the travels that I did the last few years and he has kept quite busy. One of the things that most don’t realize is that as president of NAMB , you are also your own secretary. All of the agendas, writing articles, returning phone calls and written e-mails are

tasks performed by you. So we truly are an all-volunteer association. Now I have given you all of the board members, but to be very truthful, they all do more than I have told you. This is just a general review of each of them so you can get to realize who they are and what they generally do. When I was NAMB president, I probably worked 40 hours a week doing my real paying job and another 40-50 per week as NAMB president. So it takes dedication to do this. I have to tell you that I have been on the NAMB Board for eight years and I still feel that this has been one of the most rewarding and exciting times in my life. The people who you get to know, to see, to listen to, to talk with … is just fantastic. And I have made friends and more friends in these travels across the NAMB nation. When I travel to different cities, I get calls from people who I have met that want to know “Can you give me five minutes and have a cup of coffee?” It is truly a great experience and I promise you that I would not have traded it for $1 million. I will be continuing to travel this year, but not as much. I will be in Texas, Utah and New Orleans, just to name a few of the destinations. If you are attending any events in these cities, please reach out and we can have some coffee or libation. But remember, as chief executive officer of NAMB, I am here for you. Don’t hesitate to reach out and let me know what is on your mind. And one last thing, please join NAMB. The cost is minimal and you do get so much more. Visit www.joinnamb.com to join today. And if you are a member, thanks for being a member, and if you are not a member, please join today!

John Councilman, CMC, CRMS NAMB President president@namb.org www.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 NAMB’s Industry Partner Program By Linda McCoy, CRMS This year, I have the good fortune of serving on the NAMB Industry Partners Committee, along with several other committees. This is one of the most important programs that NAMB has. Without Industry Partners, we could not survive. Since I joined NAMB many years ago, I have gotten involved a little

more every year. I was thinking about how you can join a trade group because you want to learn more about your profession and then before you know it, you are helping to make decisions in the organization. How did that happen? Most people do not start out knowing what they need to do when they accept a “Would you like to help question?” You have to learn from experience. Membership fees provide a small portion of the funds needed to repre-

NAMB’s Delegate Council: Goals for 2015 By Rocke Andrews, CMC, CRMS

Let Your Voice Be Heard In case you did not know, the word “Communicate” has a Latin derivative meaning “To share.” And as I sit here writing this article about the mortgage industry and the current state of the housing market, I cannot help but think about the importance of the word, its roots, and how different the mortgage world would look if we did a better job of communicating. This April, mortgage professionals from all around the country will descend upon Washington, D.C. with one goal … to communicate with their representatives about the housing issues and regulatory burdens which have a profound impact on consumers access to affordable credit, the ability for small businesses to remain intact in their communities, and the overall health of the econo-

my. In order for these delegates of the mortgage industry to be effective, the communication must be both directions. At this point, you might be asking, “What is John rambling about?” Well, here it goes. As Communications Committee chair for NAMB—The Association of Mortgage Professionals, I am enlisting your help to join me and our delegates in Washington as Communication Committee co-chairs. As a co-chair, you are responsible for helping NAMB spread the message about the state of the housing market, the impact of regulatory overload on consumers and small businesses, and the perception that those Washington, D.C. does not hear our voices. You can help us and your livelihood by reaching out to your colleagues and insisting that they join their trade association and support their PAC. You can reach out to your housing industry colleagues in the real estate or homebuilding communities and make them

any agenda items, please forward them to me. As president-elect of NAMB, I will chair the Delegate Council Meeting. This teleconference meeting is to get all updated and prepped for the faceto-face meeting in Washington, D.C. at the Legislative Conference, April 11-14. Depending on need, we may have another teleconference between the Legislative Conference and NAMB National, which is scheduled at the Luxor in Las Vegas, Oct. 17-19. The Delegate Council serves as the communication device between NAMB’s national Board of Directors and membership at the state level. Please get your delegates ready and start making your air reservations now before the

cost goes up. Upon registration for the event, you will receive a link to receive special pricing in the hotel rooms at the new Hyatt Place Hotel in Washington, D.C. right next to our friends at the Consumer Financial Protection Bureau (CFPB). We look forward to seeing all of you in D.C., as well as hearing each other on the upcoming conference call. My email is randrews@lendingarizona.net.

aware of the changes taking place and the impact they will have on consumers access to credit. Most importantly, you can call you representatives in Washington, D.C. and make sure they are aware of the unintended consequences taking shape across this country. Two, out of the three tasks, are completely free but be for a minimum few minutes of your busy day. NAMB’s advocacy has been effective over the years because our members get involved. NAMB members are leaders within the mortgage business because of their experience and expertise. They are widely regarded as leaders within their communities because they recognize the importance of getting involved and making a difference. In order for NAMB to continue to be an effective advocate for mortgage brokers and mortgage professionals, you must participate in the political process. Communication works when all parties are listening. And in the wake of the current economic conditions in the U.S., all parties these days should

be listening. Let your voice and the voice of millions of Americans hoping to participate in the dream of homeownership be heard. As co-chairs of NAMB’s Communication Committee, I hope you will follow the lead of your trade association, NAMB, and spread the messages we carry forward supporting consumer choice, the preservation of and promotion of homeownership and small business mortgage professionals. If you are a member of NAMB, thank you for your support. If you are a future member of NAMB, we looking forward to working with you to protect and promote your profession.

Linda McCoy, CRMS is broker/owner of Mortgage Team 1 Inc. in Mobile, Ala., a member of the NAMB Board of Directors and serves as NAMB Industry Partners Committee co-chair. She may be reached by phone at (251) 650-0805 or e-mail linda@mortgageteam1.com.

21 Rocke Andrews, CMC, CRMS of Lending Arizona LLC in Tucson, Ariz. is presidentelect of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (520) 886-7283 or email randrews@lendingarizona.net.

John H.P. Hudson is a retail and wholesale production manager for Premier Nationwide Lending and serves NAMB— The Association of Mortgage Professionals as a member of the Board of Directors and Communications Committee chair. He may be reached by phone at (817) 247-4766, e-mail jhudson@pnlending.com or follow him on Twitter at @premier_hudson.

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By John H.P. Hudson, CRMS

help? Partner with NAMB! Go to the www.namb.org Web site under the “Industry Partners” Tab. Take a look at the levels of partnership offered by NAMB and choose which one you feel would be right for your company. We would love to have a Double Diamond Partner this year. Call me at (251) 650-0805 for more information.

NationalMortgageProfessional.com

The new year’s Delegate Council kicks off with a conference call meeting Friday, March 6 at noon EST. As a reminder per the NAMB Policies and Procedures, the Delegate Council is the body responsible for representing and being a forum for expressing and realizing regional interests and concerns. The Delegate Council amends the

Bylaws, determines the membership dues, nominates officers and directors to the Board of Directors and adopts rules and procedures for the conduct of its business not otherwise in conflict with the Bylaws or Board policies. Each state and/or regional chapter shall appoint two delegates who must be members in good standing of NAMB. So if your state has not designated their representatives yet now is a good time to do that, and notify NAMB and me of their names. If you or your state affiliate has

sent our industry. Industry Partners are companies that are vital to NAMB being able to fund programs such as the Legislative & Regulatory Conference, our Summits, national conventions, regional conferences, education events and just keeping our organization moving in the right direction. By partnering with NAMB, you help to bring lenders, originators and service providers together forming a strong visible representation for our industry. You should become an Industry Partner, putting your company’s face and voice at the forefront of all NAMB events. NAMB is getting more and more visible every day. Would you like to

NAMB PERSPECTIVE A Deeper Dig on the CFPB’s Rate Checker By John Councilman, CMC, CRMS

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NationalMortgageProfessional.com

Recently, the Consumer Financial Protection Bureau (CFPB) put together a group of tools for consumers to be better informed about shopping for mortgages. As part of its Dodd-Frank charge, the CFPB is required to educate consumers on financial decisions. Better educating consumers is a noble goal that no one should oppose. However, a question arises as to when the consumer is being educated and when the consumer is being led. I believe one of the consumer tools, the Rate Checker, leads consumers to a desired price rather than merely informing them. Let’s explore why that is my conclusion. The Rate Checker is supposed to inform consumers what interest rate is “normally” being offered to borrowers with similar characteristics. The tool asks the state, loan amount, loan term, loan type, property value and credit score. It then spits out an interest rate. Hardly revolutionary. The first problem arises with

the interest rate presented. Along with the rate, one would expect to see an APR or closing costs. Numerous other sites provide far better information in this area. Any site that quoted rates and failed to give an APR would be severely fined by the CFPB. That is because anyone can quote any rate if it is absent closing costs. I could give a person a zero percent rate if they paid sufficient fees. As I have said publicly before, this alone renders the Rate Checker useless as a consumer tool. But there are more problems with the Rate Checker. It states that it only uses rates from large banks, regional banks and credit unions. Interestingly, they neglected smaller banks. Why is that a problem? Because it automatically presumes banks are the most reliable sources of mortgage quotes. How dare non-banks intrude into the world of lending when there are depository institutions doing that? They forget that sometimes non-banks offer better rates, lower costs, more flexible criteria, faster turn times, more personal service, and on and on. Then, as a slam to mortgage brokers, they proudly assert that these are rates offered by “actual lenders.” I presume that means you can rely on

Are You an NAMB Lending Integrity Seal of Approval Holder? (No additional costs to NAMB members)

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

Lending Integrity Requirements

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

these rates, but not those offered by brokers. All of this without a shred of evidence that banks are a more reliable source. The CFPB presumes that all desirable loans are generally going to be sold to some government-backed entity, such as Fannie Mae. The Rate Checker only fits the GSE/FHA paradigm and pushes people effectively in that direction by focusing on a government-guaranteed rate. This is an attempt to mold public opinion in such a way that rate is the only focus. Many people would gladly take a higher rate with a loan that would meet their needs and perhaps escape the mindless underwriting process we have at the moment. We can be certain these loans will not develop with the official “CFPB stamp” of what rate the borrower should have gotten since regulators, courts and even the CFPB itself will view (and does view) everything through a GSE prism. One aspect that has been overlooked by every article I have read so far is how Informa powers the Rate Checker. People have mentioned Informa, but it appears none are aware of how Informa works. I have used it and understand it. First, Informa is an advertising medium. It is structured to bring borrowers to your business. You load in parameters that allow your company to quote rates based on a base criteria. They key to using Informa successfully is to observe your competition and target a niche in the marketplace that is not being pushed by other companies. For example, you may want more FHA loans with a high credit score this month to make certain your Neighborhood Watch ratio is where it needs to be. So, you would price FHA loans with a 720-plus credit score below market. On the other hand, you may not want FHA loans with a score below 720 so you will price these over market. This will skew the average for these loans in Informa that would be reported to the CFPB. There is no way for Informa to know other important criteria you may have or how many loans are actually being done at that rate. To use an advertising media, such as Informa, to advise consumers of what is happening in the market is misleading and inappropriate. This is an advertising tool and no one can be certain if consumers are actually receiving these rates. The CFPB does not guarantee the accuracy of the Rate Checker nor could it. Let’s call it what it is, advertising, and essentially illegal advertising by any normal standard. To pretend that this is something consumers can rely upon is highly misleading. Consumers could be harmed even if the rates accurately reflected the market. A borrower could look at a four percent average rate for their criteria and accept the first four percent offer, not realizing that a mortgage broker could have gotten them 3.5 percent. On the converse, another borrower could turn down 4.5 percent, thinking it was too high, find an uninformed originator or Internet portal that

would offer four percent, only to find it was really not applicable to their situation. They may have to start over with the original lender who accurately quoted them while the seller decides they have another buyer, causing them to lose their dream house. Another issue associated with all of the CFPB consumer tools is the question of whether we really need them or they are a waste of taxpayer money. Since the consumer must go to the CFPB Web site to find these tools, they have access to hundreds of sites that are as good or better than the CFPB’s site. In the area of rate and fees, all of them are better. Could the money being spent on tools such as these be better spent on more counseling and seminars? Uninformed consumers often don’t use the Internet. Those who do are unlikely to search out these tools or they would already be informed. It appears the CFPB thinks borrowers don’t shop enough and therefore pay too much for their mortgage. If the CFPB thinks borrowers are at risk when dealing with trusted referrals, what do they think will happen when they send them out searching the Internet for a rate that may not even be accurately represented? What happened to the days when you did business with companies you trusted? We built a great country that way. Our businesses have thrived on “consumer loyalty.” I, for one, think it is still a great idea. Apparently, a lot of other people feel the same way. They value a company they can trust, good service and an appropriate product more than an 1/8th or 1/4th in rate and the possibility that they will be taken in by someone they don’t know. You can always find someone with a cheaper product. Rarely is cheaper better. It sets a bad precedent for a government agency to start advising consumers what the appropriate price is for any commodity. Is the next step to advise how much to pay for a car, insurance, a pound of ground beef? Where does it end? This type of mentality harms companies that offer a superior product or service by implying the government has done your shopping for you and it is all about price. With all of the potential for harm found in the Rate Checker and perhaps other government consumer tools, who is to protect the consumer from this source of misinformation? It appears Congress and even the executive branch may be powerless to provide oversight. Everyone needs accountability. The Rate Checker is a prime example of why. It is time to stop leading consumers in the name of education and take down the Rate Checker. John Councilman, CMC, CRMS of AMC Mortgage Corporation in Ft. Myers, Fla. is president of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (239) 267-2400 or email jlc@amcmortgage.com.

NationalMortgageProfessional.com

n National Mortgage Professional Magazine n FEBRUARY 2015

NAMB PERSPECTIVE A Message From NAMB Treasurer Andy W. Harris, CRMS Hello NAMB members and other non-members who plan to join after reading this message. Yes, I’m talking to you. If you are in the mortgage industry, now is the time to join your trade association and get involved. Members shape this association and the future of the mortgage industry. Why am I a member of NAMB? Well, for starters, NAMB is older than I am. I respect that and they’ve been around for

over 40 years now, and I’ve seen what we can do with combined efforts. We’re now in a new industry going forward, and I’m personally “very” excited about it, but the new generation needs to step up. Listen, I have a lot of respect for those that have shaped and protected our trade over the years, but many will be facing retirement soon and now is the time the new generation gets involved. I urge many of you to participate with your state chapters in committees and leadership, as well as attending the NAMB events to under-

stand the benefits volunteering and awareness can provide to your business and clients. So there you have it, join and become a member without needing a reason other than being in the business. Remember, the “reason” is fully dependent on what you take from it and provide to it, not from what someone tells you or needs to tell you. Excuses are boring. Now moving onto the financials as your NAMB treasurer. I am proud to say that NAMB continues to show a comfortable surplus each year and in setting our 20152016 budget this will continue. We’re always working on cutting expenses and adding value in areas that can benefit members in our non-profit trade associa-

The NAMB Certification Program

General Mortgage Associate

FEBRUARY 2015 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

The Certification Committee of NAMB— The Association of Mortgage Profes-sionals has been very productive to date in 2014, obtaining many new loan officers who have received the Certified Mortgage Consultant (CMC), Certified Residential Mortgage Specialist (CRMS) and/or General Mortgage Associate (GMA) designations. NAMB will continue to grow its Certification Program, to enhance its value to our designees, and fine-tune its structure and procedures. The goal of the NAMB Certification Committee is to raise the number of certified mortgage professionals to 1,000 by July 2015, and to launch a marketing campaign to both industry members and the public at-large about the need to utilize a nationally designated mortgage professional. For more information on NAMB’s Certification Program, contact NAMB Certification Committee member John Stearns, CMC, CRMS by e-mail at jstearns@afmsi.com or call (262) 478-1154. Alabama Linda McCoy, CRMS Penny H. Phillips, CRMS Arizona Rocke Andrews, CMC, CRMS Cal Carlson, CMC, CRMS Bert Carpenter, CMC, CRMS, GMA Randall E. Hotchkiss, CMC William R. Howe, CMC, CRMS Brian Jacenko, CMC Ross Jameson, CMC Gilda Kemp, CRMS Gary G. Kiehlbaugh, CRMS Hratch K. Panosian, CMC Joseph P. Paonessa, CMC Mark L. Ross, CMC, CRMS Gary N. Smith, CMC

Certified Residential Mortgage Specialist

Stanley Y. Wang, CMC, CRMS Linda M. Wright, CMC Arkansas Shane Lester, CMC, CRMS California Fred Arnold, CMC Michael Dorr, CRMS George L. Duarte, CMC Jane Durant-Jones, CMC Virginia Ferguson, CMC Linda Fleischmann, CMC Dean Henderson, CRMS Al Hensling, CMC Peaches Jensen, CMC Fred Kreger, CMC Jessica Lanning, CMC, CRMS Joshua Lewis, CMC C. Kent Miller, CMC James O’Dea, CMC Peter Ogilvie, CMC Nancy Osborne, CMC, CRMS Donald Petty, CMC Robert S. Schwab, CMC Guy Schwartz, CMC Christopher Taylor, CMC Richard Vujovich, CMC Susan Wingate, CMC Colorado Kay A. Cleland, CMC, CRMS Tarius L. Derritt, CRMS Gary Salter, CMC Michael Thomas, CMC Connecticut Debra Killian, CRMS Lisa Moriello, CMC, CRMS Hector Rodriguez, CMC Lou-Ann Smith, CRMS District of Columbia Diane B. Cook, CRMS

Certified Mortgage Consultant

Jan Hix, CMC Florida Tillis Churchill, CRMS Frank Cicione, CMC, CRMS John L. Councilman, CMC, CRMS Matthew Daly, CRMS Joseph L. Falk, CMC, CRMS Dan C. Longman, CRMS Julie Wheeler, CRMS Kenneth Zorovich, CRMS Georgia Michael Sean Collett, CRMS Deborah L. Switts, CMC Frank P Torch, CRMS Hawaii Donna Dodd, CRMS Patricia K. Morimoto, CMC Glenn Takasato, CMC Barbara Welsh, CMC Illinois Kenneth J. Amstutz, CMC, CRMS Gilbert M. Antokal, CRMS Brian Augustine, CRMS Leticia Avina, CRMS Jackie Bulava, CRMS Angelo Cusinato, CMC, CRMS Tony Davis, CMC, CRMS John Dedes, CRMS Dorothy P. Desmond, CMC, CRMS Brian Dixon, CRMS Charles E. Eck, CMC Adenike Fasanya, CMC Carol Gardner, CMC, CRMS Jorge G. Gomez, CRMS Scott T. Guzik, CMC Robert J. Kenney, CRMS Steven M. Levitt, CRMS Robert C. Moos, CMC, CRMS Andrew G. Palomo, CMC, CRMS

tion. Financials have been simplified and organized under my watch and as long as I am your Treasurer, I will continue to be clear and candid with financial trends. As always, feel free to reach out to me anytime if you’re a member. If you’re not, that’s okay because I know you’ll be a member now that you’re done reading this. You’ll thank me later. Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and treasurer of NAMB—The Association of Mortgage Professionals. He may be reached by phone at (877) 496-0431, e-mail aharris@vantagemortgagegroup.com or visit www.vantagemortgagegroup.com. Terry Pogofsky, CRMS Judith Santefort-Frey, CRMS Shelly Straim, CMC Tory Tarsitano, CRMS Prince Williams, Jr., CRMS Indiana Frank Andriole, CRMS Donald J. Frommeyer, CRMS Robert E. Sweeney, CRMS Iowa Charles D. Chedester, CRMS Kevin Kirsch, CRMS Brian E. Lampe, CMC, CRMS Kansas A.W. Pickel, III, CMC Lynn Smith, CMC Kentucky Nicolas M. Ellis, CMC, CRMS Louisiana Michael Anderson, CRMS Tracy Lynn West, GMA Maine Elizabeth Monaghan, CMC Maryland Theresa Amos, CRMS Adrian F. Citroni, CRMS Jason Fox, CRMS Eric D. Gates, CRMS Patricia McGill, CMC Rick Rall, CMC Craig Strent, CRMS Ken Venick, CMC Massachusetts Richard M. Bettencourt, CRMS George F. McLaughlin,III, CMC, CRMS Michigan Timothy Baise, CMC Chip Cummings, CMC Eric Kistka, CMC, CRMS Pava J. Leyrer, CMC, CRMS Minnesota Jason Decker, CRMS Christopher Dueffert, CRMS

NAMB PERSPECTIVE Shannon Roepke, CRMS Jayne B. Sims, CRMS J.J. Sims, CRMS

Tennessee Sheila Lipman, CRMS Brian C. Short, CMC, CRMS, GMA

Mississippi Robert D. Capps, CRMS Daniel J. D’Amico, CRMS Vickie S. Graves, CRMS Kenneth A. McNeal, CRMS

Texas Harry H. Dinham, CMC John H. Hudson, CRMS Jolene Jaehne, GMA Olga Kucerak, CRMS Karl LeBlanc, CRMS Henry Lesmeister, CRMS Stacy London, CMC Terry J. Morrow, CMC

Missouri Andrew Conner, CRMS

Robin C. Morton, CRMS Jim Pair, CMC William Parker, CMC, CRMS Jerry Rutledge, CMC April Schummer, CRMS Jeffrey Shealey, GMA

New Mexico Ginger Bell, CRMS Wes Moore, CRMS New York Jim Barry, CMC Donald Henig, CMC Seth Rapport, CRMS Jessica Schoen, CRMS

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

Oregon Andy Harris, CRMS Matt Jolivette, CMC Tami Konkel, CRMS Stephen C. Salveson, CRMS Kerry L. Vasquez, CMC Pennsylvania Wayne Angelo, CRMS Michael J. D’Alonzo, CMC George Hanzimanolis, CRMS James E. Martin, CMC, CRMS Stephen M. Matthews, CRMS Mark Mazzenga, CMC Kevin McElwain, CMC Daniel Thierry, CRMS Deborah A. Webb, CMC South Carolina James Taylor, CMC

Dear Mortgage Professional, For the past several months now I have used this space to urge you to check-out the special promos and discounts available through NAMB+’s Endorsed Providers. I know that many of you are taking advantage of these money-saving offers already, which is fantastic! However, I’m sure some of you are still scratching your head wondering what exactly NAMB+ is really all about. If you are not yet familiar with NAMB+, it is the wholly owned, for-proﬁt, marketing and communications subsidiary of NAMB, The Association of Mortgage Professionals. NAMB+ was created by NAMB to explore business opportunities that will deliver added value for NAMB Members, while allowing NAMB to continue to advance its core non-proﬁt mission and maintain its position as the preeminent trade association for mortgage professionals. The NAMB+ Endorsed Provider program is just one way that NAMB+ is working to help NAMB Members enhance and improve their businesses. The NAMB+ has formed strategic relationships with product and service providers,

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

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

which have been carefully identiﬁed, considered and approved by the NAMB+ Board of Directors and have demonstrated an interest in and a commitment to supporting you as a mortgage professional and a member of NAMB. If you have any questions about NAMB+ or the Endorsed Provider program, please do not hesitate to contact me. I will be happy to speak with you. Also, please do visit www.NAMBPlus.com and take advantage of one or more of the valuable discounts and promotions available to you!

John G. Stevens, CRMS, President NAMB+, Inc. John@JohnGStevens.com NAMBPlus.com

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

LoanSquatch allows NAMB members to reduce their monthly pricing from $19.99 per month to $9.99 per month and the ﬁrst month is just 99 cents!

LoanTek’s platform is designed to save time, create better leads, and convert leads into new business. NAMB members receive a discount off Brokers Compliance Group compliance support programs.

BusinessETouchCRM provides a Cloud based CRM for only $29.95 a month for NAMB members.

NAMB Members receive a 10% discount off regular prices for all CallFurst.com products and services.

NAMB members receive a 19% discount for CopyTalk services.

See below for a complete listing of the current NAMB+ Endorsed Providers and visit NAMBPlus.com for more information.

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

NAMB members get special pricing plus 1 month FREE.

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

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

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

NAMB members receive a 10% discount on Path2Buy’s one-on-one coaching service.

NAMBPLUS Login Instructions

NAMB Members will receive a Twenty-Five Percent (25%) discount off of the regular price with their NAMB Membership.

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

n National Mortgage Professional Magazine n FEBRUARY 2015

Ohio Kevin Ary, CRMS Dennis Fisher, CMC, CRMS Robert Mahaffey, CRMS Jim Nabors, II, CMC, CRMS Erick A. Parker, CMC, CRMS Duy Vu, CRMS Phenon Walker, CRMS

Wisconsin John L. Stearns, CMC, CRMS

NationalMortgageProfessional.com

North Carolina Donald E. Fader, CRMS Neill E. Fendly, CMC David M. Overcast, CRMS Jeffrey Trout. CRMS

West Virginia Marc Savitt, CRMS

Virginia Bernice Brown, CRMS

Nebraska Brent Rasmussen, CRMS

New Jersey Richard L. Jarocki, CMC

Washington Stephen Bozick, CMC Edward Irwin, CMC Patricia L. Naselow, CMC

Utah David Luna, CRMS Nathan Pirerce, CRMS John Stevens, CRMS

Montana Rni Arnett, CRMS, GMA Tavell Peete, CMC, CRMS

New Hampshire Michael Loffredo, CMC Paul R. Sliker, CMC

Jason Crigler, CRMS Richard L. Gilbert, CRMS David E. Shelor, CRMS

Mortgage Industry Mourns the Loss of NAMB Past President

George Hanzimanolis BY ERIC C. PECK n Feb. 5, the mortgage industry got the sad news that longtime active member of the Pennsylvania Association of Mortgage Brokers and NAMB—The Association of Mortgage Professionals Past President George Hanzimanolis of Bartonsville, Pa. passed away after suffering a heart attack at the age of 53. George is survived by his wife of 31 years, Kimberly; his son, James; and his parents, James and Sharyn Hanzimanolis. Over the years, George accomplished much locally and nationally, first with his involvement with the Pennsylvania Association of Mortgage Brokers, and his involvement on the national level with NAMB. He was honored by his industry peers both locally and nationally with the honor of Broker of the Year for the state of Pennsylvania and was named Mortgage Broker of the Year by NAMB. His volunteer efforts grew from his time spent on the Board of Directors of PAMB, rising to the position of PAMB president, leading to a long-term tenure and involvement on the NAMB national Board of Directors, eventually leading to his taking the gavel of NAMB’s presidency. “George was one of the great NAMB presidents,” said John Councilman, CMC, CRMS, current president of NAMB and president of AMC Mortgage Corporation. “George fought tirelessly for mortgage brokers and originators. But more than that, he was a man with a big heart. It was never about George; it was always about NAMB, his friends or his clients.” According to a write up in the Pocono Record, George first worked at The Spa, a family restaurant in Harrison, N.J., before moving to Pennsylvania in the late 1980s. He built a successful business, Bankers First Mortgage Inc. of Tannersville, Pa., and was requested to speak about ethics on the floor of the U.S. Senate in Washington, D.C., and on CNBC. Donald J. Frommeyer, CRMS, chief executive officer of NAMB, recalled his time spent on the board of the association with George. “From my first day on the Board, George made me feel like an equal in the mortgage business and in serving on the Board,” said

enormous contributions to the mortgage industry, his successful leadership of NAMB, and as a loving and devoted husband, father and son who always put his family and friends first,” said Russ Sickmen, former president of National Mortgage Professional Magazine and longtime acquaintance of George. “It is my privilege to have been able to call him a friend. I know he will be enormously missed by myself and his family, friends and the thousands of individuals he has helped throughout his personal and professional life. George was a true community leader.” “George served in many positions with NAMB, but he should be remem-

bered most for his willingness to listen and extend a helping hand to anyone who needed it,” said Jim Nabors, NAMB 2005-2006 president. “His generosity will be missed as much as his knowledge and love of our industry. I considered George one of my closest friends and hope that everyone will remember him for all he did and wanted to do to make our industry a better place. Mostly, I want his son Jimmy to know how much his dad loved him and how he was constantly in his father’s mind. No matter where we were at or what we were doing, our sons always became part of our conversations. I’ll miss him greatly.” Donald E. Fader, CRMS of SMC Home

Finance in Kinston, N.C., 2012 NAMB National Mortgage Professional of the Year and former director of NAMB, fondly remembered his first meeting with George. “My first memory of George was at the 2002 NAMB Annual Convention in Baltimore,” said Fader. “At that time, he was bigger than life and wearing multiple ribbons denoting awards, achievements and his involvement with NAMB. I served on the board during his term as president and can only say that our industry has lost a good friend and a tireless defender of the small independent mortgage professional. He made a difference. My thoughts and prayers are with his family.”

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n National Mortgage Professional Magazine n FEBRUARY 2015

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Frommeyer. “His compassion for the industry and for the membership of NAMB were always in the forefront of what he accomplished in his term of his presidency. His devotion to his family, especially his son, was evident from the first time that I met him. His genuine smile was his introduction to you, and he always listened to anything that you had to say. I was honored to call him my friend, and he will be greatly missed.” “George was a gentle giant that was both a great friend of mine and the mortgage profession,” said Joel M. Berman, publisher of National Mortgage Professional Magazine. “His leadership of NAMB as president stood out, as he sacrificed both his business and family to accomplish his agenda for the industry. When he was moving up the ladder to president at the NAMB Annual Convention, he proudly brought many members of his family to share in this moment. I also remember years ago, after his presidency, he joined myself and my former partner, Russ Sickmen, to meet with a potential NAMB Industry Partner. He drove 14 hours round trip that day from Pennsylvania to Long Island, N.Y. for that meeting. His passion for the mortgage professional was second to none, and came across strong because he left Long Island that day with a commitment for a new NAMB Platinum Industry Partner and a $100,000 pledge to NAMB. He just wouldn’t take no for an answer. His smile and passion will be missed, and I extend my deepest condolences to his family at this time.” George’s longtime friend from his home state of Pennsylvania, Michael J. D’Alonzo, CMC of MB Financial Bank, NAMB 2010-2011 president, said, “George was an exceptional leader, mentor and friend. He was a selfless person who constantly gave of himself and asked for nothing in return. He was an incredible advocate of the mortgage industry, but an even bigger advocate of his family and friends. George was bigger then life and he will be missed.” In lieu of flowers, George’s family is requesting that donations be made to Boy Scout Troop 85 of Bartonsville, Pa. He was a lifelong active member of the Boy Scouts of America and an Eagle Scout, and more recently, a Scoutmaster for Troop 85 in Bartonsville. Harry H. Dinham, CMC, NAMB past president and member of the association’s board under George’s presidency, said, “He was a good friend and a true ambassador for the mortgage industry. There were many things that he was passionate about, but the ones that stick with me most were his dedication to his family, the Boy Scouts and helping families get their dream homes. He used to talk about the consumers he had helped like family because that’s what they were to him. He will be missed by all of those whose lives he touched.” “George deserves to be recognized by every mortgage professional for his

An Interview With Terry W. Clemans, Executive Director of the National Consumer Reporting Association BY DAVE SULLIVAN

FEBRUARY 2015 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

pecial correspondent to National Mortgage Professional Magazine, Dave Sullivan, recently had the opportunity to sit down with Terry W. Clemans about changes coming to the credit industry. Terry is currently the executive director of the National Consumer Reporting Association (NCRA), a national trade organization of consumer reporting agencies and associated professionals that provide products and services to hundreds of thousands of credit grantors, employers, landlords and all types of general businesses. Headquartered in the Chicago suburb of Roselle, Ill., NCRA serves members in the U.S. and Puerto Rico. NCRA’s membership includes two of every three mortgage credit reporting agencies in the U.S. that can produce a credit report that meets the requirements of Fannie Mae, Freddie Mac and HUD for mortgage lending. Additionally, our members produce reports for employment screening and tenant screening.

What does NCRA stand for and what does the association symbolize? What is the association trying to accomplish? Clemans: We represent the housing consumer reporting industry. Any time a consumer is obtaining housing, whether they are buying a home or renting a home, the credit and background report for the rental or the credit report for the mortgage transaction is likely done by a member of NCRA. About 80 percent of the mortgage credit reporting agencies in the United States are members of NCRA. Additionally, we have some of the largest resident screening companies in the U.S. as members of the NCRA. NCRA members provide millions of consumer reports a month for the housing industry.

How long has the association been around? Clemans: NCRA was founded in 1992. How long have you been associated with NCRA? Clemans: Well in one form or another, I have been with the NCRA since it was founded. I was an owner of a consumer reporting agency when NCRA was founded, and was one of the 100 companies that were reached out to by a dozen industry leaders who felt they needed their own industry voice back in 1992. I became what was called a charter member, as one of 38 companies that said “Yes, we agree with that original dozen,” the steering committee members of NCRA and the association’s first board of directors, and here is $1,500 to seed the launch of the association. I was a member for many years, served on a couple different committees, including the board of directors. After selling my company in 1998 to Factual Data, I was approached by NCRA in 2000 to become executive director. I have been in that position since January of 2001. I wanted to discuss some of the confusion over FICO 9. There has been a lot of talk about how FICO 9 is really going to help people get a mortgage. I know the National Association of Realtors (NAR) has come out with a press release about how great FICO 9 is going to be for people getting mortgages. I wanted to get your take on it and your expectations on where FICO 9 is. Clemans: I agree with the thoughts and initial reactions about how FICO 9 will improve things. I was listening to a presentation about FICO 9 by one of the FICO developers at NCRA’s Conference recently in Palm Springs, Calif. There are some great features to FICO 9 similar to what the Vantage score’s most recent version. Unfortunately Dave, you are right in that

FICO 9 is not currently used in the mortgage industry. Actually, the announcement is always leading, prior to the availability of the score for use. FICO 9 is only now becoming available for a variety of lending options and mortgage will likely be the last industry to utilize FICO 9. The current requirements for mortgage scores from Fannie Mae, Freddie Mac and the U.S. Department of Housing & Urban Development (HUD) are actually two generations behind FICO 9. The required score to be provided to mortgage lenders currently is almost 10-years-old, so history shows it is going to be a while before it’s in use, but there is hope. One other thing about FICO 9 that I’m concerned about is if people pay off a collection. That collection will no longer impact a credit score, is that correct? Medical collections in particular have a lower impact on the FICO 9 score. Do you think that people, for that reason, will see FICO scores for the most part be higher than FICO 04 scores across the board, over the entire population, scores will be higher now? Clemans: I am sure some lenders are going to have some concerns about that conversion however, if they look at the research that was done by Fair Isaac and remember that, it supports the same research found by the people at Vantage Score and the FICO changes are similar to the newest Vantage Score model that should provide some relief to the concerns about this change. The research found that paid collections in general, and specifically paid medical collections really had very little predictive value with regards to the consumer’s ability to repay other credit obligations. The conversion to a new score gets into a lot of other factors of course due to scoring models being very complex. But the bottom line is the research showed there is less and less pre-

dictive value in collection accounts, especially when it they are paid. That is probably the most confusing part about credit scoring for people who are currently going through the mortgage process. They feel like they need to pay off all the collections and hope that they’ll be improving the score, in reality, they wind up tanking their score initially and then it recovers later and I think it’d be a great improvement. Clemans: Don’t forget “paid collections” are the ones that have the less predictive value. If the consumer still has unpaid collections there is definitely a negative impact that will be factored into the score due to that unpaid collection. Sure, I think it is an improvement. I hope that Fannie and Freddie eventually move over to something more modern. Clemans: There have been some great movements in that regard just recently, and even going back to November of last year. Very recently, there was a Congressional hearing with Mel Watt, the director of the Federal Housing Finance Agency (FHFA). In that hearing, the Democratic Senator from Oregon, Jeff Merkley, who has been a longtime supported the Medical Debt Responsibility Act, put a lot of pressure on Mr. Watt to get updated credit scores into use at the GSEs. The Medical Debt Responsibility Act is a bill that NCRA has supported in the last three Congresses that is a very simple one-page bill simply requires a medical collection to be removed entirety from the credit report within forty five days after payment. Unfortunately, the bill is not going to pass in this lame duck session of Congress; however we are hoping it will be back in the next Congress. There is movement to rectify that scoring problem outside of the bill as you can hear at the

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models right now that are based off of consumer spending and payment patterns that are from prior to the 2008 financial crisis of almost 10 years ago. Any modernization in this area would be an improvement. Even moving to FICO 8 would have been a great improvement for as long as we have both been in the business,

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Caliber Home Loans, Inc., 33701 701 R Regent egent Boul Boulevard, evard, Ir Irving, ving, TX 7506 750633 (NMLS # #15622). 15622). 1-800-40 1-800-401-6587. 1-6587. Copyright©2015. Copyright©2015. All Rights R Reserved. eserved. Equal Housing Lender. Lenderr. For For real real estat estate e and llending ending pr professionals ofessionals only and not ffor or distribution tto o cconsumers. onsumers. This ccommunication ommunication may may contain contain information information that is privileged, privileged, confidential, confidential, legally legally privileged, privileged, and/ and/or 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 pr prohibited. ohibited. Caliber Home Loans, Inc. is required required to to disclose disclose the following following license license information: information: Alask Alaska aM Mortgage ortgage Lend Lender er Lic License ense No No.. AK AK15622; 15622; Arizona M Mortgage ortgage Bank Banker er License License No. No. 0923637; 0923637; Licensed Licensed b byy The Depar Department tment of Corporations Corporations under under the California California Residential Residential M Mortgage ortgage Lending A Act, ct, FFinance inance Lend Lender er Lic Licensee; ensee; C CO: O: R Regulated egulated b byy the Division of R Real eal Estat Estate; e; DE: Lic Licensed ensed b byy the Dela Delaware ware State State Bank Commissioner, Commissioner, License License 5202 e expires xpires 12/ 31; Georgia R esidential Mortgage Mortgag g e Lend er Lic ense No Residential Mortgage Mortgage Lic ensee No 3, b est W 12/31; Residential Lender License No.. 7330; Illinois Residential Licensee No.. MB.000404 MB.0004043, byy the Illinois Division of Banking, 320 W West Washington ashing ton St., Spring Springfield, field, IL 62 62786, 786, (217) 7782-3000; 82-3000; K Kansas-licensed ansas-licensed mor mortgage tgage ccompany, ompany, Lic License ense Number SL SL.0000796; .0000796; Minnesota: MN-M M MN-MOO- 40 40149066, 149066, This is not an off offer er tto o ent enter er int into o an agr agreement. eement. An Anyy such off offer er ma mayy only be mad made e in ac accordance cordance with the rrequirements equirements of Minn. Stat. Section 4 47.206 7.206 (3) and (4); Lic Licensed ensed b byy the Mississippi Department Department of Banking and C Consumer onsumer Finance; Finance; Montana Montana M Mortgage ortgage Lend Lender er Lic License ense No No.. 15622; Lic Licensed ensed b byy the New Hampshir Hampshire e Banking Depar Department; tment; NV NV:: 33753 753 Ho Howard ward Hughes P Parkway, arkway, Suit Suite e 25 257, 7, Las V Vegas, egas, NV 89169 89169,, (702) 7784-5975; 84-5975; Lic Licensed ensed mor mortgage tgage bank banker er n.s.--N.J. Depar Department tment of Banking; g; Lic Licensed ensed M Mortgage ortgag g e Bank Banker-NYS er-NYS Depar Department tment of Financial F inancial Ser Services; vices; Ohio MB MBMB.850184.000; MB.850184.000; Or Oregon egon M Mortgage ortgage Lend Lender er Lic License ense ML ML-324; -324; Rhod Rhode e Island Lic Licensed ensed Lend Lender; er; V VA: A A: NMLS ID # 15622 (www (www.nmlsconsumeraccess.org); .nmlsconsumeraccess.org); W Washington ashing ton C Consumer onsumer Loan C Company ompany Lic License ense No No.. CL CL-15622. -15622.

n National Mortgage Professional Magazine n FEBRUARY 2015

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I have been through that too recently; we have had some hospital bills come in this year. I always pay them when they come in because I am so paranoid about my credit score. It would be very easy to let those go, thinking they are going to be covered by insurance. Then the bills wind up not being covered or some portion of them not being covered by insurance. Even though collection companies are required to contact you 30 days prior to putting the collection on your credit report. Many times, I know people miss those notifications. It is really unfortunate they have to suffer the way that they do because of a medical insurance glitch. Clemans: There are all kinds of horror stories out there about that very issue and that is the reason why the CFPB has issued a 53-page report recently on their Web site including a consumer advisory about medical collections. Most of the conversation at that field hearing in Oklahoma City was specifically regarding this topic. We are hopeful that this pressure from the CFPB and the instructions that were given to Mr. Watt by Sen. Merkley will help expedite a newer cred-

it scoring model into Fannie and Freddie. We are hopeful that this is going to create a situation where we will see FICO 9 or Vantage Score put to use in the mortgage industry much sooner rather than later. I would love to say that this will happen around the first quarter of 2015, in all honesty it might be closer to the first of the year 2016 or 2017 rather than 2015 considering we are still using scoring

I never thought Fannie or Freddie would ever move off of FICO 04. If you are saying it could be in a year that would be big for the mortgage industry. That update would wind up helping a lot of people and that would be wonderful, you mentioned Vantage Score. I wanted to bring them up they have been around for a little while now and they have been trying to get into the mortgage market and have been unsuccessful. Another scoring model that I thought would never be used in the mortgage industry but now you are saying they are looking at that as well? Clemans: I believe they are, there have

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I’m sure he did, that’s good news for consumers and that’s all that we’re trying to do. Clemans: Yes, other good news recently is that the Consumer Financial Protection Bureau (CFPB) has weighed in on this topic as well. The CFPB recently held a field hearing in Oklahoma City all about collections, more specifically, the impact of medical collections on a consumer’s credit report. The CFPB has also been doing research on this topic. The CFPB’s research found that 43 million Americans have had a negative impact on their credit report specifically due to medical collections. Fair Isaac spoke at the CFPB field hearing with similar information that they presented at the NRCA Conference regarding the loss of predictably value regarding the consumers ability to repay debt based on collections in general. Again, medical collections were especially lacking in value when they are paid. This may be due to the complex system in place within the medical billing industry today. Insurance companies and third-party billing companies make this a very tedious process and then the collections agencies can make the billing process even more complex when they get the account. It is not a simple system to work through, and there are a lot of problems in this space. Unfortunately, a lot of people have been harmed by it and that is why you see both Fair Isaac and Vantage score moving away from using paid medical collections in particular as they are just not very predictive to someone’s future ability to pay.

“The current requirements for mortgage scores from Fannie Mae, Freddie Mac and the U.S. Department of Housing & Urban Development (HUD) are actually two generations behind FICO 9.”

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one hour and forty minute point of the hearing where Sen. Merkley really put some heat on Director Watt about the old scoring models that Fannie Mae and Freddie Mae are using. Since Mr. Watt is the Director of the FHFA, the regulator for Fannie Mae and Freddie Mac, he has a lot to say in regards to a matter like this.

RESPA/TILA Integration: The Rest of the Story … By Joy K. Gilpin Today, the lending industry is abuzz with all the preparations necessary to implement Integrated Disclosures under RESPA/TILA this coming August. As well we should be, after all this is only going to change the way we’ve done business for the last 30 years. That’s right, we are bidding farewell the old ways of providing a Good Faith Estimate (GFE) and an initial Truth-in-Lending (TIL) as part of the application/initial disclosure process. So long are the days of closing out transactions with a Final TIL and the HUD-1 Settlement Statement. Soon we’ll be moving to the new Loan Estimate and Closing Disclosure, both hitting the scene on Aug. 1, 2015. And while there is much to discuss on the new Integrated Disclosure rules, that’s not what we’re discussing today. Instead, in the words of the late Paul Harvey, we are going to explore … the rest of the story. What do I mean? Think about every single time or place your organization references one of the following in some written format: l l l l l l l l

FEBRUARY 2015 n National Mortgage Professional Magazine n

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GFE RESPA TILA HUD-1 Settlement Statement Closing Statement Initial Disclosures Or some variation of these terms

What sort of documents might be impacted? That’s an excellent question. Since my team is responsible for the authorship and maintenance of about 40 compliance policy manuals (www.AllRegs.com) in the mortgage lending space it is a question we’ve been asking early, and often, to ensure we’re accurately addressing the needs of our clients and business partners. For all of us out there working hard to remain ahead of the curve and compliant, there’s more to do. For example, we have identified that of our roughly 40 documents, nearly half reference the traditional RESPA/TILA requirements I mentioned above. Think about that. Fifty percent of our material requires a touch in order to adjust for Integrated Disclosures. What does that mean to you? Well, I’m not sure, but I’m certain it means something. For example, what about your training materials? Any references there? Job aids? Do they reference any of the terms listed above? What about your form letters, or system guidance? What about marketing materials or borrower education content? The point I’m trying to make is there is more to the process than just taming the RESPA/TILA beast (ROAR)—which is a significant endeavor. It’s about understanding and responding to the MANY rolling impacts these regulatory changes present to us all. Set aside some time to review your document libraries and find the language, references, and links that might be affected. An ounce of prevention is worth a pound of cure—especially when prescribed by an auditor. Good luck and stay compliant. Joy K. Gilpin is professional services manager with AllRegs. She may be reached by phone at (800) 848-4904.

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new to market continued from page 18

to take advantage of the new features, which are designed to increase brokerage visibility and branding. The new features will have a phased rollout throughout 2015. “These new features enhance the brokerage branding on for-sale listings as well as in our powerful directory,” said Greg Schwartz, Zillow chief revenue officer. “Brokerages will now have the ability to showcase their brands in several new and prominent ways on every single one of their agents’ listings, while having complete transparency to the sites where their listings appear.” New features in Zillow Pro for Brokers Plus include: Additional, high visibility brokerage branding on all listings; new, dedicated brokerage pages showcasing agents, agent reviews, listings, a company video and agent recruiting tools directly on Zillow; and enhanced company information (including a company video) directly on listings. Zillow Pro for Brokers Plus is free for brokerages and will include all the original features of the initial program, including Zillow’s rigorous data transparency standards. A direct data connection with Zillow ensures that brokers retain complete control over their listing data, guarantees better listing accuracy and that listings are never redistributed to unwanted sites. Listing agents benefit from having their data sent directly to Zillow as often as every 15 minutes. Listing agents will always be displayed first next to their listings, and listings will include a brokerage logo and outbound link to their Web sites.

Accurate Group Announces Compliance Support for Fannie Mae’s Collateral Underwriter Accurate Group, a provider of real estate appraisal, title and compliance services, has announced support for Fannie Mae Collateral Underwriter (CU) in the form of enhanced appraisal processes, updates to its Valuation Compliance Report and comprehensive training and certification of its appraisal review team. Fannie Mae is making its Collateral Underwriter tool available to lenders and appraisal management companies, enabling them to take full advantage of this application for quality control and risk purposes. This action moves appraisal risk, data integrity and overall appraisal quality from the back end of the loan sale process to the front end. This change could have an immediate impact on lender underwriting procedures. Accurate Group has been proactively communicating with Fannie Mae to incorporate the new requirements

into its turnkey service offerings to ensure a seamless transition for its lenders. In addition to putting its entire appraisal review team through a series of Fannie Mae training and certification sessions, Accurate Group has modified its appraisal review processes to incorporate Collateral Underwriter into the workflow. In addition, the company has enhanced its proprietary Accurate VCR (Valuation Compliance Report) product to include new rules necessary to ensure all hard stop proprietary messages are addressed. Accurate VCR will now automatically alert Accurate Group’s in-house appraisal review team to potential red flags, allowing them to address the issues prior to submitting the appraisal to the lender or to Fannie Mae. With Accurate VCR, Accurate Group can enforce the rules either at the appraiser level or at its review team level for added flexibility in delivering the best possible service and quality to its clients. “Our clients rely on us to stay ahead of the compliance curve, so we’ve been proactively planning for the Fannie Mae CU changes,” said Paul Doman, president and CEO of Accurate Group. “We have the processes, technology and team in place to help lenders adhere to the new Fannie Mae requirements and are prepared to make this change a smooth transition for them. This is one of the benefits our clients gain by choosing an appraisal management and compliance company such as Accurate Group, over just a standard AMC. With Accurate Group, compliance is never an afterthought—it is engrained in our business and in every product and service we offer.”

HomeUnion Upgrades, Now Offering Comprehensive Investment Property Search

HomeUnion has announced that it has added comprehensive search capabilities to its investment management Web site. Now, investors can enter their investment preferences and automatically search investment properties in 12 of the top SFR markets. HomeUnion applies its proprietary algorithms to filter through tens of thousands of available properties to identify the best investment opportunities. The filtered properties are then reviewed by on-staff, local market experts, who have an intimate working knowledge of a particular real estate market to create a final vetted list that is displayed on HomeUnion’s online investment portal. The factors involved in choosing markets, neigh-

borhoods and properties include home prices, rents, vacancies, historical performance trends, employment diversity and population growth. The interactive property search capabilities allow investors to see the investment potential based on whether they will finance their investment or pay cash. Investors can also search the HomeUnion property database based on a variety of variables including: Projected return-on-investment (ROI), price range, market, property type, investment amount, appreciation and year built. “We are providing investors with tools that enable them to do due diligence and select properties based on their investment criteria. While cashflow and appreciation are the most important factors for investors when choosing single-family rental investments, investors also are concerned with price range, property type, and of course ROI,“ said Don Ganguly, founder and CEO of HomeUnion.

NewOak Releases Non-QM Support Services to Assist Originators

FDIC Releases Additional Technical Assistance Video on CFPB Mortgage Rules

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

n National Mortgage Professional Magazine n FEBRUARY 2015

The Federal Deposit Insurance Corporation (FDIC) has announced the release of the second in a series of three new technical assistance videos developed to assist bank employees in meeting regulatory requirements. These videos address compliance with certain mortgage rules issued by the Consumer Financial Protection Bureau (CFPB). The first video, released on Nov. 19, 2014, covered the Ability-to-Repay (ATR) and Qualified Mortgage (QM) Rule. The second video covers the Loan Originator (LO) Compensation Rule, and the third video, expected to be released in February, will cover the Servicing Rule. The three technical assistance videos are intended for compliance officers and staff responsible for ensuring the bank’s mortgage lending operations comply with CFPB rules. “Today’s release of the second technical assistance video on the new mortgage rules represents FDIC’s ongoing commitment to informing community banks about important regulatory issues and to help them manage regulatory changes in the consumer compliance area,” said Mark Pearce, Director of the Division of Depositor and Consumer Protection.

PULL QUOTE: “Many large companies are familiar with operational risk audits and do them regularly. But for many smaller and growing lenders who have never done a proper operational risk audit, getting the process started can seem daunting.”

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NewOak has announced the launch of its new Non-QM Support Services platform. Developed by NewOak’s Credit Services Division, the program provides a range of solutions to address the demands on originators and investors in non-QM products to manage increasing regulatory and enforceability risks. NewOak’s Non-QM Mortgage Support Services provide a range of targeted offerings based on its deep mortgage expertise and scalable technology, including due diligence and quality assurance consulting services, customizable underwriting applications that ensure accurate and defendable data and work flows, and its innovative Mortgage Defense Package, a proprietary electronic repository of all key documentation and decision-support data needed to defend the loan approval. “NewOak has created a state-ofthe-art services support platform that integrates our unmatched skillset in mortgage underwriting, data management and analytics with flexible hightech functionalities to service the full range of products covered under nonQM,” said Partner Chad Burhance, head of NewOak Credit Services. “The reality is that there is a very large audience of attractive borrowers who are not able to obtain a new mortgage or refinance an existing one. Whether it’s the loan amount, blemishes on the borrower’s credit or a change in employment, these factors as well as others can adversely affect borrowers. However, many originators and investors deem these characteristics as both acceptable and desirable risks, but their existing operations are not configured in accordance with

many of the new regulations, including the ability-to-repay analysis.” NewOak’s non-QM platform is dynamic and designed to be tailored specifically to each client’s unique needs. “Some clients are not comfortable with the entire operation being outsourced for these critical functions,” said Burhance. “Our platform allows for integration across points of origination, compliance and risk management workflows. Depending on where a particular client’s needs are, we can integrate a solution to satisfy them.

The Long & Short: The Business of Short Sales

Potential Homebuyers and Drive to “Get Credit Right” Prompts Florida Mortgage Broker to Open Web site RealtyTrac and NCRA to assist with intro Webinar By Pam Marron

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Make no mistake, the economy appears to be roaring back! However, as of the fourth quarter of 2014, RealtyTrac reported1 there are still more than seven million homeowners or 13 percent of all residential mortgage holders, that are more than 125 percent underwater. Large pockets of seriously underwater homeowners still exist in Florida, Nevada, Ohio, Illinois, Michigan and Georgia. For many in these states, positive equity is not coming back soon enough. And, contrary to past press about “strategic defaulters” defining a great number of these folks as leaving homes even though they could afford to pay but chose not to, evidence points to unemployment and not enough assets leaving little choice but to exit these homes.2 Most shocking, but cited by nearly all short sellers was that the only way to get help was to be delinquent on their mortgage payment first … an option most often told to them by their own mortgage lender. And when that mortgage delinquency exceeded 120 days, credit often showed as a foreclosure even when the home closed as a short sale. But a recent report by RealtyTrac focuses on “Boomerang Buyers,”3 or those who lost their homes to foreclosure or short sale and may now be eligible for homeownership again.4 “We expect about 500,000 potential boomerang buyers nationwide in 2015, but that number will nearly double to more than a million potential boomerang buyers in 2016-2019,” cited Daren Blomquist, RealtyTrac vice president. This is good news for the mortgage and real estate industries! However, problems surrounding the credit of past short sellers persists to this day. The lender loss mitigation policy that requires mortgage delinquency in order to provide a short sale approval has inadvertently wrecked future credit options for many past short sellers. Clear wait timeframes before a new mortgage approval are in writing for both foreclosure and short sale, but because there is no specific short sale credit code, short sale credit most often shows up as a foreclosure.5 A foreclosure requires a seven-year wait before a conventional mortgage can be approved, rather than the twoyear wait minimum after a short sale. And past short sellers who tried to get this fixed are finding that “disputes” put on the erroneous credit for their short sale must be taken off. The result is that erroneous credit of these past short sellers gets worse, and costly and time consuming rapid rescores are holding up the reentry of those who can positively affect the real estate market and the U.S. economy. The National Credit Reporting Association introduced the QMCR (Qualified Mortgage Credit Report) which provides a deeper review of the consumer’s credit and includes verifying disputed data, the inclusion of non-traditional data and alternative data not currently reported to credit reporting agencies. Credit reporting agencies can accurately code a short sale with proper documentation provided by the past homeowner or creditor. But, because of a desire for credit reporting in seconds rather than the 72 hours needed to accurately document, there is pushback to this idea. Here are four areas of great importance to “get right” for more than seven million severely underwater homeowners and another 7.3 million Boomerang Buyers potentially able to come back into the housing market within the next eight years: 1. Dissect the real hardship for why a short sale was done. Allow third-party certification to be done by those trained to verify for conventional mortgages, similar to HUD’s option that provides for HUD Approved counselor certification on

the “Back to Work” program. 2. Seriously look at the NCRA’s idea for the QMCR (Qualified Mortgage Credit Report). 72 hours is not long to wait to “get credit right!” Lenders would be relieved to have accurate information, and affected consumers would have an option to correct credit with other than a dispute.

water properties. Marron, along with Daren Blomquist, RealtyTrac vice president, and Terry W. Clemans, executive director of the National Consumer Reporting Association (NCRA), will provide a Webinar through National Mortgage Professional Magazine in February 2015 to introduce the Web site and discuss credit issues and numbers of those affected.

3. Loss mitigation policy for short sales needs to be changed to allow underwater homeowners that must short sale to continue making payments through a short sale if they can.

Pam Marron is senior loan officer with Innovative Mortgage Services Inc. She may be reached by phone at (727) 375-8986 or e-mail pmarron@tampabay.rr.com.

4. Make HARP 3 refinancing available to non-Fannie Mae and non-Freddie Mac mortgage holders, and discount rates for a shortened term, the quickest solution to gaining equity back!

1—RealtyTrac, Jan. 22, 2015 (www.realtytrac.com/news/mortgage-and-finance/year-end2014-underwater-home-equity-report/).

Footnotes

A new Web site called www.HousingCrisisStories.com was created to provide support for affected underwater homeowners and past short sellers. The site will promote lenders, originators, credit reporting agencies, HUD approved counselors, PMI companies and governmental agencies that can help affected consumers. Please call Pam Marron at (727) 375-8986 or e-mail pmarron@tampabay.rr.com for further information. Marron is a mortgage broker in Florida, a state severely hit with under-

2—Unemployment, Negative Equity, and Strategic Default, K. Gerardi, Aug. 4, 2013 (www.urban.org/events/upload/Gerardi-KerkenhoffOhanian-Willen-Strategic-Default.pdf). 3—RealtyTrac, Jan. 26, 2015, 7.3 Million Boomerang Buyers Poised to Recover Homeownership in Next Eight Years (www.realtytrac.com/news/foreclosure-trends/boomerangbuyers). 4—Where Boomerang Buyers Will Emerge Over the Next Eight Years, RealtyTrac Report, Jan. 28, 2015 (www.realtytrac.com/news/realtytracvideos/where-boomerang-buyers-will-emergeover-the-next-8-years-realtytrac-report). 5—Short sale credit is coded from borrowed Metro 2 credit coding.

an interview with terry w. clemans continued from page 29

been comments regarding some looks into the new scores being offered and Vantage has been mentioned for potential use at Fannie and Freddie. Vantage has a very good product and although they are not in the mortgage industry currently, they have captured a majority of the credit card industry and have worked into several other industries including the auto industry and personal loans. Vantage Score was created by the three major credit repositories, TransUnion, Experian and Equifax. Barrett Burns, the VantageScore CEO, has been very active in the industry. He is a great guy who is on the board of directors of the Mortgage Bankers Association. Vantage is very active in pursuit of the mortgage industry. I believe you will see in the not so distant future, with all the changes going on at Fannie, Freddie and HUD, to see the GSEs open it up and have an option for VantageScore or FICO 9. I would hate to see it go to FICO 8, but that is a possibility and ultimately Fannie and Freddie will likely hold that information closely until there is an announcement. As soon as there is something concrete, we definitely be letting everyone know. It will be big news! The biggest thing that has happened in the credit indus-

try over the last 10-15 years. Almost since credit scores were invented. Clemans: It will be a definite major change to a very pro-consumer score and a very pro-consumer change at a time where it can help a lot of people and further the housing industry’s recovery by treating people a little more fairly and equitably with regards to the medical collection issue. We have just seen too many instances of consumers scores being harmed by medical bills that were never really their responsibility. The insurance company ultimately paid the collection, but because it took the insurance company so long to pay the bill the collection agency had marked the consumers report and it is just not fair to penalize the consumer for two-, three-, or maybe five-years for a problem in the medical billing processes. Ultimately, the collection account is on their record for seven years, but for the scoring purposes the account really starts to have a very limited impact after four years on most credit score models. Dave Sullivan is special correspondent for National Mortgage Professional Magazine and marketing director for Credit Technologies Inc. He may be reached by phone at (248) 891-2205 or email dsullivan@credittechnologies.com.

nmp news flash continued from page 16

active in the residential mortgage l Four in 10 read online lender reviews market, are considering an exit from to help them choose a lender. this line of lending or are exiting the When thinking back about the lending market; process, homebuyers believe online improvements would have made it easier l Seventy-eight percent of respondents reported increasing the numto work with their lender, including: ber of staff members dedicated to l Secure ways to submit electronic doclending compliance over the past uments, 77 percent. five years; and l Easy-to-use online applications, 72 l Forty-four percent said they origipercent. nated fewer first-lien residential l 24-hour support, 52 percent. mortgage loans in 2014 compared The national survey of 1,003 recent with the year before. homebuyers was commissioned by Discover Home Loans and conducted by Versta Research, an independent survey research firm. The sample was carefully balanced and weighted using American Housing Survey and National Association of Realtors (NAR) data to ensure an accurate representation of homebuyers by region, age, marital status and first-time versus repeat homebuyer status.

The survey also found that 66 percent of respondents said they do not provide loans that are outside the Consumer Financial Protection Bureauâ&#x20AC;&#x2122;s Qualified Mortgage definition or would only do so in special cases. Just 25 percent of community bankers said they are providing loans that do not fit the CFPBâ&#x20AC;&#x2122;s QM definition, showing that the new restrictions have shrunk the credit box and taken away lender discretion in granting credit. Meanwhile, half of all rural banks said they do not qualify for the QM ruleâ&#x20AC;&#x2122;s â&#x20AC;&#x153;ruralâ&#x20AC;? exception, which demonstrates that exemptions from the standard are too narrow, limiting access to credit for consumers who need it.

ICBA Reports 73 Percent of Community Banks Find Regulations Stunting Mortgage Lending

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B2R Finance L.P., NMLS ID # 1133465, 4201 Congress Street, Suite 475, Charlotte, NC 28209. B2R Finance L.P. is not a residential mortgage lender. B2R Finance 87675432150/.-,524/3,5+*)(5/5'400-&'*/25%$&%4,-5/3#5*,534)5'$&&-3)215/$)(4&*"-#5)450/.-5,$'(524/3,5*35/225!$&*,#*')*43,75 4$&5,%-'* '5 /'),5/3#5'*&'$0,)/3'-,5+*225 #-)-&0*3-5+(-)(-&5 5 *3/3'-587675(/,5)(-5/$)(4&*)15)45/%%&4 -524/3,5*3514$&5,%-'* '5!$&*,#*')*4375 5 *3/3'-5876754%-&/)-,54$)54 5,- -&/2524'/)*43, 5 $)534)5 /22524'/)*43,5'43#$')5 $,*3-,,5*35/225!$&*,#*')*43,75 &*"43/5 4&) / -5 /3.-&58*'-3,-5 75 *33-,4)/ 5 (*,5*,534)5/354 -&5)45-3)-&5*3)45/35/ &--0-3)75 315 ,$'(54 -&50/1543215 -50/#-5*35/''4&#/3'-5+*)(5)(-5&- $*&-0-3),54 5 *3375 )/)75 7 5 75 &- 435 4&) / -58-3#-&5 8 7

n National Mortgage Professional Magazine n FEBRUARY 2015

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Community banks want to lend more to drive economic growth in their communities, and they have the capital to do so. However, a new survey by the Independent Community Bankers of America (ICBA) found that approximately three-quarters of community bank respondents said new mortgage regulations are keeping them from making more residential mortgage loans in their communities. â&#x20AC;&#x153;ICBAâ&#x20AC;&#x2122;s 2014 Community Bank Lending Survey validates what community banks have long predictedâ&#x20AC;&#x201D;that new restrictions on mortgage lending are reducing much-needed access to mortgage credit for many Americans,â&#x20AC;? ICBA President and CEO Camden R. Fine said. â&#x20AC;&#x153;The results show that Congress should act quickly on ICBAâ&#x20AC;&#x2122;s Plan for Prosperity legislative platform, which would implement common-sense reforms to support continued access to credit without compromising consumer protection or safety and soundness.â&#x20AC;? The 2014 Community Bank Lending Survey found that community banks want to continue lending, with most community banks serving as full-service lenders and reporting a positive outlook toward most lending areas. However, the survey also shows the avalanche of new regulations coming down on community banks from Washington is having a negative impact on their lending and consumer choice. According to the survey: l Seventy-three percent of community bank respondents said regulatory burdens are preventing them from making more residential mortgage loans, significant percentages of community banks are no longer

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:

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

M A G A Z I N E ’ S

economic commentary

THE

BEST

By Dave Hershman few months ago, we proposed a possible scenario in which we could witness the “best of all worlds.” In this case, we were referring to a stronger economy and continued low interest rates. No, it appears that the prediction could come true, but with an emphasis on the word “ALL.” Because not only has the year ended and began with lower rates and stronger economic news, but also low oil prices which is sure to help the consumer, though it certainly does not help consumers and companies in the oil industry. For years, we have been wading through a very slow and tedious recov-

ALL

ery from the deep recession. We knew at some point we would reach a tipping point which is called the “virtuous cycle.” It now appears that we may be at the beginning of this virtuous cycle though the first measure of economic growth for the fourth quarter last year does show that we are not growing at the robust pace of the second and third quarters. The number is subject to revisions and also did contain good news in that there was solid growth in consumer spending for the quarter. The weak retail sales report for December also gave us some concern about the pace of the recovery since this report covered the holiday season. Despite this, we are expecting the economy to eventually shine if the slowdown overseas does not reach our borders. What we were not expecting

WORLDS

REVISITED

was the potential for lower interest rates and dramatically lower oil prices at the same time. Theoretically, when the economy gets stronger, rates and oil prices should rise. As we have mentioned, international factors have contributed to a changing of the paradigm from our nation’s perspective. And we must say, the American consumer deserves some better than expected times after several years of recession and a tediously slow recovery. So, the next question is, how long could these better times last? We cannot predict how strong the economy will get and for how long. But the more the economy heats up, the more likely that rates and oil prices will rebound. For now, it is a good time to take advantage of this situation, whether your clients are thinking about purchasing or

refinancing real estate or purchasing a car. If they do, we have a feeling that they will not be alone. We absolutely believe that if these lower interest rates, low oil prices and stronger economy stay in alignment, this will translate into a stronger real estate market this year. Almost ten years ago, America led the world into a recession. Could it be that now we are getting to lead the world out of its economic doldrums? 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 www.originationpro.com.

NMP Daily is the mortgage industry's source for news, insights, trends and tips. It keeps subscribers informed of the regulatory and legislative updates, latest industry happenings and breaking news about the mortgage technologies and services.

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Recruiting in a

Blue Ocean By Mike Maida

If ever there was a time to capitalize on the state of business, it’s now. The lin-

“According to a 2013 workplace study by Gallup, the top 25 percent of employers have significantly higher productivity, profitability and customer ratings, as well as less turnover and absenteeism rates.”

Searching the blue ocean At least that remains the goal. Many mortgage companies have been forced to learn some tough lessons when it comes to recruiting and expanding their business. Like many lenders poised for growth, they hired high and often, and hoped for the best. Sometimes it’s the “win-win” they were searching for, and other times they ended up with folks who weren’t a great fit for the organization. Looking back, they’ve likely realized that they’ve wasted a lot of precious time and energy trying to “fix” the problems that surfaced out of their futile attempts at growth. It’s a common miscalculation. Perhaps, the candidate interviewed well, the employee seemed more

motivated than they actually were, or the new branch was slow to adopt internal procedures or embrace customer service best practices. Whatever the inadequacy may be, ignoring these red flags or hoping they will repair themselves will always be detrimental for business. Gallup warns against these workers—sometimes referred to as counterproductive employees—who may actually end up jeopardizing your company and its reputation, something that is especially vital when you’re trying to capture new markets. Taking the time to fine-tune your continued on page 51

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n National Mortgage Professional Magazine n FEBRUARY 2015

Cooperative business model

benefit from working in a largely autonomous environment with the backing of a company that has the stability and hard-earned reputation of an established mortgage lender. They are able to absolve the risks present in the market, as well as gain equity in the parent company. And these newly planted branches get something else pretty pertinent, too—access. To the latest technology and lending platforms, to marketing and advertising materials, to sales tools and support, and above all, to funding. It’s a winwin for both parties.

NationalMortgageProfessional.com

When it comes to growing your mortgage lending business, it can sometimes feel like you’re searching the ocean for the right employees. It’s easy to go on a hiring spree when the capital is in place to do so, but simply bringing on folks who have “experience” in the mortgage industry isn’t going to elevate your business. Nor is having great employees with lackluster leadership. A successful lending business begins and ends with the work ethic of the people who operate it, from the frontline employees and loan officers, to upper management professionals. These are the people who are going to go the extra mile, not only for the company, but for their customers as well. With a whopping 70 percent of American employees admitting to being disengaged in the workplace, it should come as no surprise that lenders are doubling-down on efforts to retain a talented and engaged workforce. In the mortgage industry, we face not only high competition, but also diminished morale following the hardships endured during the housing crisis. As many big-box and boutique lenders went belly up during the recession, many mortgage professionals lost their jobs or jumped ship to avoid walking the plank. According to a 2013 workplace study by Gallup, the top 25 percent of employers have significantly higher productivity, profitability and customer ratings, as well as less turnover and absenteeism rates. In opposite effect, people who are discouraged in their chosen trade can bring a business down. Gallup estimates that active disengagement costs the U.S. between $450 and $550 billion in lost revenues per year. With the economy and housing largely in recovery, it’s time to grow again. So, how do we overcome the industry’s PR problem and capture engaged workers? Like many businessbuilding endeavors it is a determination far easier said than done. At the end of the day, it’s not prices or service that will recruit talented employees but the work culture and support you provide to them that will ignite a turnaround.

gering apprehension over the recession has transformed a significant part of the workforce into an entrepreneurial, progressive-thinking populous. These people are not necessarily staged at the biggest lending firms, either. They are the ones who’ve been operating independent firms, or have been searching for a firm footing within the industry under another company’s umbrella. They are persistent, experimental and looking for ways to move the mortgage industry forward. There’s been a changing of the guard, if you will. Millenials especially crave this ascension, and more established mortgage professionals continue to be eager to succeed, as well—as long as the right support systems are in place. Yet, as ambitious as these professionals may be, they often lack the capital, compliance intelligence or the compulsory assets to take their business or career to the next level. As you can imagine, the absence of these resources can create a difficult work environment, not to mention create an air of fear, as these individuals remain locked in panic mode, simply trying to stay afloat in unsteady waters. Endorsing a recruitment program that incorporates the cooperative business model offers a solution that is two-fold: lenders are able to expand their network and business, while those who sign on to the archetype

The Lead Generation Compa

FEBRUARY 2015 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

enerating leads is an important way to reach consumers. It is also fraught with regulatory risk. A lead is consumer information that signals consumer interest or inquiry into products or services offered by a business, such as residential mortgage lenders and originators. There are several factors to be considered, not just licensing. I will list some rudimentary guidelines in this article, specifically with respect to contact with the consumer. Caution is urged to consult with a risk management professional to ensure compliance with federal and state guidelines required by a marketing campaign to generate leads. Although my focus is primarily on the online lead generation process, virtually all the guidelines provided herein may be extrapolated for use in offline lead generation campaigns. My firm often is requested by clients

JONATHAN

to vet a lead generator, which I will call a Lead Generation Company. Careful risk management advice should be considered when developing and managing leads, whether obtained from an outsourced entity or a loan originator’s own website, in-house, or through online lead generation advertisements. Certainly, any loan originator that uses leads must have an internal compliance function that accounts for proper licensing of the Lead Generation Company (where required), monitoring of the data integrity derived therefrom, testing conformance with the originator’s policies, and training of staff in the appropriate use of lead generated, consumer data. Banking departments these days are not just looking at licensing qua licensing. They are looking for loan originator compensation violations that are triggered by lead generation. For instance, they know that loans may have different cost structures depending on how

FOXX

the loans were initially received by the lender. A lead generated by the loan originator may be compensated differently than those generated by the creditor. As long as this doesn’t constitute a proxy for a loan term or condition, it is generally acceptable; that is, the loan officer may also be reimbursed for lead generation and other legitimate business costs, but the creditor must beware of how this may serve as a proxy for terms and conditions. It is up to the lender to make this determination (and properly document it).

without consent (or notice and choice) of all parties involved, including the consumer and the loan originator; 3. Both the consumer, Lead Generation Company, and the loan originator should be made aware, through clear notices, of all parties involved in data collection and sharing; and, 4. All parties should be educated and aware of current regulations regarding consumer protection and privacy.

In any lead generating marketing, the following four rules should be implemented:

These four rules become the bases of the policies, procedures, contractual arrangements, and protocols that ensure a viable marketing campaign that relies, in whole or in part, on lead generation.

1. Complete, accessible, and straightforward disclosure of all parties’ intent regarding data collection and usage is essential; 2. Data should not be brokered or sold

The regulators involved in enforcement of compliance with lead generation rules include, but are not limited to, state banking departments, state

Four rules

Regulatory focus

Attorneys General, the Federal Trade Commission (FTC),1 and the Consumer Financial Protection Bureau (CFPB). We already know that the CFPB examines for whether the lead generator is a thirdparty provider and reviews the terms and appropriateness of the relationship. The CFPB reviews advertisements and advertising sources. It will review TV, radio, print media, Internet, scripts, recordings, and so forth. It will determine if there was proper consumer disclosure all along the way, from point of contact with the consumer to point of contact with the lender, including any intimation of fees and other terms and conditions. Plus, a review is conducted

who actually made the loan, which makes getting help when you need it harder.”2 In addition, the CFPB has provided caution regarding key words, tags and tactics. Importantly, the CFPB’s view toward the Pay Day lead generator should be applied to residential mortgage lenders and originators that purchase leads from a Lead Generation company. Here’s the point: The CFPB has clearly issued an answer to the question, “What is the difference between an online payday lender and one with a storefront?” Its answer was that consumers need to make sure the online website is licensed to do business in the con-

that state the Bureau could pursue an action against the Lead Generation Company because it assisted or facilitated a consumer’s information to be sold to an unlicensed entity, pursuant to various third party vendor management bulletins. Some states already require a Lead Generation Company collecting consumer information to be licensed as “mortgage brokers” such as Arizona and Virginia. The licensing requirement varies from state to state. Referencing Pay Day lenders, most of the Pay Day lenders in Ohio, for example, have become mortgage brokers under the SAFE Act as it takes them

an in-house lead generating campaign is complex. A loan originator should retain competent risk management to ensure that the entire campaign is fully vetted and is based on statutory and case review, as well as clear and unambiguous regulatory compliance mandates. I suggest that you consider adopting the following guidelines for lead generation marketing.4 The list is not exhaustive, because each loan originator often has different ways to generate leads, and the overall review should reflect a loan originating company’s size, risk profile, and complexity.

any: Managing the Risks 1. Is the Lead Generation Company violating the SAFE Act if it is not licensed in the state it is operating in? 2. If it is licensed under SAFE will it be violating the broadly defined Loan Officer Compensation Rule?

Lead generation as advertising Depending on the advertising used to find a consumer for a loan originator, the Bureau may deem the communication to be an advertisement to generate a lead by using certain phrases, such as “Let us help you find a mortgage! Call us or click here for more information!” If deemed an advertisement, the CFPB will move to the view that such advertising is a solicitation for a mortgage conversation from a consumer. The outcome of that position would likely lead to a violation of the SAFE Act, because most states consider such a solicitation a violation of SAFE even if no payment is made by the lender or loan officer to the Lead Generation Company—because this type of solicitation would trigger a license requirement. Even if the Lead Generation Company is properly licensed under a particular state’s SAFE Act, if it sells that lead to an unlicensed loan originator in

out of the state usury statute for Pay Day lenders.

Three concerns What type of online Lead Generation Company could cause issues of concern? 1. Unlicensed Lead Generation Company that tells consumers, for instance, whether they are “Qualified for a Loan or Not” 2. Online Lead Generation Company that collects any sort of non-public personal information data (the definition of what is “NPI” may vary from state to state, but is also federally settled in Gramm-Leach-Bliley, et alia) and fails to inform and obtain the consumers consent that their information will be shared with a third party; and, 3. Online Lead Generation Company where it has spoken directly with the consumer and then transfers the “Live Handoff” over to the loan originator (especially if the Lead Generation Company is not licensed, where required by state law). If the Lead Generation company acts as a special kind of mortgage broker then it may be best to stay away because this could violate the standards associated with the Loan Officer Qualifying Rule, mentioned above, which became effective on Jan. 1, 2014. Additionally, please note that the CFPB has broad authority to enforce Fair Lending Laws, the Telemarketing Sales Rule, Mortgage Lending and Regulations, Mortgage Acts and Practices Advertising Rule, and most certainly Unfair, Deceptive and Abusive Acts or Practices (UDAAP).3

Scope of lead generation review The scope of review involved in managing the relationship with a Lead Generation Company or administering

Data collection disclosures l Do not hide fields without consumer disclosure. l For both simple and custom offer types, if the Lead Generation Company chooses not to show one or more fields, it should either: l Include clear and conspicuous notice prominently on the offer page or via a prominently displayed link indicating which fields will be collected and shared with the loan originator(s), or l Include text next to each offer on the page that specifically lists each field that will be collected and shared with the purchaser of the lead. l The Lead Generation Company should include a clickable link to its continued on page 38

n National Mortgage Professional Magazine n FEBRUARY 2015

Consumer advocacy In a Nov. 11, 2013 announcement to consumers, the CFPB stated, “Lead generators might not find you the lowest cost loans, and you should be cautious of sites that promise they will. Many consumers can also be confused about

sumer’s state and whether the lead generator follows the state’s [payday] lending laws. Consider it a warning to all residential loan originators! Therefore, when the CFPB starts looking at online lead generation involving residential mortgage loans, it is somewhat certain that it applies an even stricter standard to the Lead Generation Company that solicits mortgage information or a mortgage conversation from consumers and sells it or even passes it on to a loan originator. Questions that the CFPB would resolve, either by promulgating rules or through enforcement action, will likely be:

NationalMortgageProfessional.com

for online data security and sharing of consumer information. Although the new loan originator qualification standards do not impose licensing requirements, every lender must ensure that each loan originator in its employ is licensed and registered in compliance with laws related to Secure and Fair Enforcement for Mortgage Licensing Act (SAFE), if applicable. Further, entities engaged in lead generation and marketing activities, as well as the companies that do business with such entities, need to pay particular attention to their activities to ensure that they do not inadvertently engage in loan originator activity. If they do, they’ll need to make sure that they meet the new loan originator qualification standards, including licensing requirements. Failure to meet these standards will give rise to severe civil liability that could impair the collectability of the loan. The CFPB has stated that anytime a consumer gives out sensitive personal and financial information on the Internet there are risks involved to the consumer. In the context of Pay Day Loans, for instance, the Bureau has already warned consumers that if a consumer applies for a loan online, the consumer could be increasing risk significantly. The CFPB has expressed concern that an online application or form that consumers fill out could be sold to a loan originator that offers to originate a loan on behalf of the consumer. Indeed, the CFPB also has indicated it has concerns that multiple lenders or other settlement service providers could pay for this information, thereby causing them to contact or email the consumer.

l A privacy policy is essential to properly obtain permission and communicate the intended use of the data collected from consumers. The privacy policy should: l Disclose and outline the practice of data collection, usage, and sharing. Data practices should be easy to find, easy to read and easy for consumers to act upon. l The privacy policy should be posted in a clear and conspicuous fashion when accepting the consumer’s information on the Lead Generation Company’s and/or loan originator’s registration page and online lead generation form. l Consumers should be given adequate notice of any privacy policy change. l Lead Generation Company and/or a loan originator’s in-house campaign should have notice on their home page(s) that their privacy policy has been updated. Highlight the updates and list the dates of the revisions at the top of their privacy policy. Strongly consider e-mail notification to all consumers covered by the original privacy policy. l Implement technical and management controls to comply with the privacy policy. l Conduct a regular, periodic evaluation of their privacy policy to ensure compliance.

the lead generation company continued from page 37

privacy policy within each offer. l The Lead Generation Company should not sell data that the consumer has provided during registration or on an advertised offer form to other companies to use to market itself to the consumer without the consumer’s knowledge or choice.

Data licensing and list management l The Lead Generation Company should disclose if the data collected will be shared with third parties. l No sharing of NPI with third party marketers for the purpose of sending e-mail, without the consumer’s consent. l Loan originators that use third parties to manage their e-mail list should have a formal data licensing agreement. l Loan originators working with list management partners should also create a review process to monitor their partners’ activity. l Loan originators should appoint a compliance manager who is knowledgeable in Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) and additional privacy law and standards to oversee the review process.

FEBRUARY 2015 n National Mortgage Professional Magazine n

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Consumer experience l The Lead Generation Company should allow consumers to easily skip offers if they do not want to share the data being requested by the loan originator or if they are no longer interested in the offer. l The Lead Generation Company should ensure that the skip function is clear and conspicuous and is not hidden or difficult to locate on the offer. In addition, the skip function should be displayed in equal prominence to the submit function. l In a Web page set-up, a Lead Generation Company may pre-select loan originator offers on a multilisting page to present consumers with offers they believe may best fit their needs. Pre-selected offers are acceptable for custom offers where additional data is collected, but should be considered opt-out. Importantly, offers made based on the Fair Credit Report Act (FCRA) require very careful implementation and only after thorough review by a risk management professional. l Simple offers: Usually not asking for additional information or custom form fields and generally characterized by only a “yes/no” answer or opt-in box—should not be preselected. Note: The practice of preselecting the “yes” or the opt-in box—which, in effect, automatically signs up the consumer for that offer without the consumer having to take any further affirmative

action—is considered to be an optout offer and therefore should not be used. l The Lead Generation Company should use clear language when using pre-selected custom offers; and it should not insinuate that the consumer must select an offer in order to continue through the registration process.

Software applications (Internet) l The Lead Generation Company and/or the loan originator may request that consumers download software applications that can connect through the Internet to their computer or mobile device. Any such download should only be initiated after affirmative consent from the consumer. l After completion of the download, Internet-connected software applications should: l Only launch with the consumer’s knowledge; that is, be visible to the consumer and not run invisibly in the background, until such time as a consumer configures options to allow such behavior; l Clearly indicate the name and contact information of the loan originator and provide a reasonable method to obtain further information about the loan originator; and l Provide functionality that enables an average consumer to completely uninstall the application from his/her computer or mobile device without any negative impact on the consumer’s device.

Consumer Data Sharing from Loan Originator l After submission, the lead data should be transferred from the Lead Generation Company in real-time or batch in a standard, secure format.

Disclosure: Offer requirements and obligations l Prior to accepting any consumer information, the terms and conditions must be clearly and conspicuously disclosed so that a reasonable consumer may understand the essence of the proposed exchange. The terms and conditions should be compiled, reviewed and updated by a risk management professional who is knowledgeable about, among other things, consumer disclosure mandates. l Terms and conditions should be accessible and prominent during the registration or offer selection process. l When using the term “free” or “complimentary” or other similar terms, the loan originator should ensure proper disclosures are made in prox-

imity to the term, if some form of obligation is needed by the consumer to receive the offer. Note: Such terms are considered “trigger terms” under the Truth-in-Lending Act (TILA). Seek professional guidance prior to using any incentive language. l Loan originators should include a summary of consumer obligations and requirements. Note: the summary of obligations and requirements is used to additionally educate consumers and not to replace a detailed terms and conditions link that should be prominently displayed for consumers.

Promotional site disclosures Promotional sites offer consumers rewards such as a free gift, a free newsletter, a free quote, or other reward items when registering. A subset of promotional sites may include lead generation offers that are incentivized. Incentivized offers are offers that are required for the consumer to select in order to qualify for the reward. The Lead Generation Company may run a combination of incentivized and non-incentivized offers throughout its registration process and Web site flow. The offer type—either required or optional—should be clearly and conspicuously articulated to the consumer on the offer pages. This disclosure should be at the top of such page before the consumer engages in any loan originator offers. If multiple pages are used with various offer requirements, consumers should be able to navigate freely between the “offer pages” to better understand the scope of the incentive requirements. Promotional sites that have incentivized offers should follow all disclosure points outlined above and take the following additional steps: l The Lead Generation Company must disclose directly on the registration page exactly what the consumer needs to do in order to receive the reward. l A summary of key requirements of the consumer should be disclosed on the first registration page. l If the consumer must sign up for various offers to qualify for the reward, the Lead Generation Company should disclose to the consumer the cost associated with each offer presented. l If there is some form of monetary obligation needed to qualify for a gift, the Lead Generation Company should, at a minimum, provide the consumer with a representative estimate of such costs.

the lead was generated by an in-house lead generation campaign. Areas subject to the CFPB’s and/or a federal or state regulator’s examination would include determining if the relationship with the Lead Generation Company is properly disclosed; whether a review was implemented for privacy and how the consumers’ data was shared; that there is identification whether the party is a third party provider or not; if there was a thorough, documented review of the lead generation Web site or advertising portal itself; and whether the consumer was appropriately notified of all fees, terms, and conditions throughout the lead generation process. The CFPB will investigate a Lead Generation Company involved in generating leads on behalf of residential mortgage lenders and originators. Any company involved in the lead generation business, and any loan originator using a Lead Generation Company, should actively assess the compliance risks associated with online lead generation. Indeed, each state where the Lead Generation Company is licensed (or ought to be licensed) must be researched for statutory licensing requirements and compliance therewith. Jonathan Foxx is president and managing director of Lenders Compliance Group, Brokers Compliance Group, Servicers Compliance Group and Vendors Compliance Group, national companies devoted to providing regulatory compliance advice and counsel to the mortgage industry. He may be contacted by phone at (516) 442-3456, by e-mail at jfoxx@lenderscompliancegroup.com or visit www.LendersComplianceGroup.com.

Footnotes 1—For instance, see United States of America, Plaintiff, v. Intermundo Media, LLC, a limited liability company, also doing business as Delta Prime Refinance, Delta Prime Mortgages, and American Dream Quotes, Defendant. FTC Matter/File Number: 122 3225, Federal Court: District of Colorado, Sept. 12, 2014. 2—“Is Applying for a Payday Loan Online Safe?,” 11/06/13 (www.consumerfinance.gov/askcfpb/1577/applying-payday-loan-online-safe.html).

Planning for the CFPB’s visit

3—Section 5(a) of the Federal Trade Commission (FTC) Act prohibits “unfair or deceptive acts or practices in or affecting commerce.” The FTC standards are broad and apply to any unfair or deceptive practices affecting consumers or commercial businesses. The Dodd-Frank Act introduced UDAAP and directed the Consumer Financial Protection Bureau to issue regulations designed to prevent UDAAP.

The CFPB will surely look to the source and use of a loan originator’s leads from a Lead Generation Company. It will hold the loan originator responsible for leads obtained from a Lead Generation Company as seamlessly as if

4—In preparing this section, I found helpful and relied partly on Online Lead Generation: B2C and B2B Best Practices for U.S.-based Advertisers and Publishers, February 7, 2008

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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.

FFC Mortgage Acquires University Mortgage

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FFC Mortgage Corporation, a New York-based lender founded in 1987, has announced the acquisition of University Mortgage. Led by Chief Executive Officer Steven LoBue, the University merger brings more than 20 full-time employees to FFC, and adds an estimated $15 million in monthly closed loan volume to FFC’s existing production. “We are pleased to add such a productive and talented group to our FFC family,” said Doug Reilly, president of FFC Mortgage. “This merger is yet another step in our continually expanding footprint. Steven [LoBue] and his team have established themselves as leaders in their New Jersey marketplace and we look forward to continuing our growth together.” LoBue brings more than 15 years of industry experience to FFC in all aspects of mortgage sales, management, marketing and start-ups. After the initial onboarding and integration are complete, he and his leadership team of Brian Kelly and Shawn Miller will manage and grow the existing location, begin to pursue additional M&A opportunities, and recruit new branch locations. “Not only am I looking forward to the new dynamic with FFC, but I am also pleased to be working again with my leadership team of Brian Kelly and Shawn Miller,” said LoBue. “As the former partners of One Source Mortgage, we established systems and practices that we are confident will contribute to FFC immediately.”

Bay Equity and Apex Home Loans Employ SSI’s Tools to Manage Vendor Risk Bay Equity LLC and Bay Equity Home Loans have announced a partnership with Secure Settlements Inc. (SSI),

the first vendor management firm to specialize in closing table risk. Bay Equity chose SSI’s Quick Check, Closing Guard and Vendor Check tools to ensure all its third-party service providers pass independent risk evaluation, rating, monitoring and reporting in order to gain access to a borrower’s loan documents and mortgage proceeds. “Third-party service provider oversight is increasingly important in the lending industry,” said Bay Equity Chief Operating Officer Sue Melnick. “After several months spent evaluating solutions to mitigating settlement agent risk, Secure Settlements’ products simply stood out as the best in the industry. As a leader in mortgage lending, our company continually seeks to not just meet but to exceed regulatory expectations for quality control and loan quality assurance. We take the management of third party service providers seriously in terms of operational risk, investor confidence and consumer protection.” SSI monitors thousands of title companies, settlement agents, real estate law firms and other professionals through its proprietary technology and the mortgage industry’s only shared nationwide database. The database is accessed daily as a fraud prevention tool by state and federal banks, mortgage lenders and credit unions throughout the U.S. “We are pleased and honored to have been chosen by Bay Equity for these critical risk management services,” said SSI President Andrew Liput. “In our extensive dealings with the Bay Equity leadership team, we saw firsthand their serious commitment to quality control, consumer protection and overall loan quality assurance.” Apex Home Loans Inc. has also announced that it has enhanced its risk management policies and procedures governing its mortgage lending busi-

ness by requiring all settlement agents to pass independent risk evaluation, rating, monitoring and reporting in order to close their residential mortgage loans. The process will be managed for Apex by SSI. Apex chose the SSI Closing Guard tool to evaluate all settlement agents who wish to close loans with Apex. “We are committed to meeting regulator and consumer expectations for risk management and loan quality assurance,” said Judy Blank, chief compliance officer at Apex Home Loans. “We take seriously the management of settlement agents who have access to our funds and borrower personal and financial information and can impact operational risk, investor confidence and consumer protection. After months of research we concluded that Secure Settlements’ products stand out as the premier solution to manage this process for us.”

VirPack Forms Doc Management Partnership With BofI Federal Bank

VirPack has announced that BofI Federal Bank has selected and deployed VirPack’s Document Management and Delivery System (DMDS). BofI Federal Bank is a nationwide bank that provides financing for single and multifamily residential properties. With more than $4.8 billion in assets, BofI Federal Bank provides consumer and business banking products. “BofI Federal Bank selected VirPack’s Document Management and Delivery System because we wanted to create a true end-to-end paperless manufacturing process,” said Brian Swanson, executive vice president and chief lending officer for BofI Federal Bank. “We’ve leverage this technology because of the

advanced, intuitive features that speed up and improve processes. These capabilities mean we’ve been able to avoid the delays that have afflicted many lenders because of new regulations, swollen loan files, and reduced staff levels.” Among the reasons BofI selected VirPack was to be able to annotate documents digitally and without having to print them out. Borrowers will have access to electronic signature technology and that will speed the origination process, make it more accurate, efficient, mobile and less expensive. Also, DMDS enables BofI to electronically recognize and index documents without manual intervention, a feature that reduces the labor and time it takes to identify and file document images by an average of 85-95 percent per lender. “There is no question that VirPack has developed a sophisticated platform, that delivers on our promise to clients of providing a very effective document management and delivery technology that improves throughput, while shortening turn-times and cutting costs,” said Cy Brinn, VirPack’s chief operating officer. “In an environment in which lenders are forced to deal with greater regulatory scrutiny and economic pressure than ever before, lenders rely on DMDS to ensure compliance, increase capacity, and deliver high levels of service without having to hire additional staff.”

Ellie Mae Becomes the Newest Member of ESRA Ellie Mae Inc. has joined the Electronic Signature and Records Association (ESRA), a trade association representing electronic signature adopters and providers. ESRA was founded in 2006 to educate businesses and the public about the legal, public policy, regulatory and operational issues involved with using electronic signatures and records. Its members include insurance and financial institutions, document and e-signature providers, and innovative technology providers such as Ellie Mae.

Used by more than 100,000 mortgage professionals, Ellie Mae’s flagship product, Encompass, is an all-in-one mortgage management solution that enables banks, credit unions and mortgage lenders to originate and fund mortgages efficiently with built-in compliance and quality tools. “Digital signatures and electronic closings are a vital part of Ellie Mae’s mission to bring efficiency, loan quality and compliance to the mortgage industry,” said Joe Tyrrell, Ellie Mae’s senior vice president of corporate strategy. “By collaborating with ESRA and drawing on their expertise—as well as sharing our own experiences—we will all move much closer toward industry-wide acceptance of electronic signatures.” As an ESRA member, Ellie Mae will have the opportunity to become involved in various public policy initiatives and promote the organization’s efforts and leadership by participating in ESRA-hosted events throughout the year. “Ellie Mae is committed to providing seamless e-disclosures and e-closings as part of Encompass’ end-to-end automation capabilities,” said Harry Gardner, Ellie Mae’s vice president of eStrategies. “Electronic mortgages provide an advanced framework for addressing the requirements of RESPA-TILA, and can increase efficiency and data quality throughout the loan process. We look forward to working with ESRA to help the industry reach the tipping point of mainstream e-mortgage adoption.”

Comergence Compliance has announced that it is now providing its

data such as: Licensing, criminal and civil records, financial sanctions, as well as bankruptcies and foreclosures. Because the REALM platform is updated continuously, clients are able to keep current on the status of their thirdparty originators, helping to ensure compliance with state and federal regulations as well as monitor risk. “Bayview is streamlining its originator approval process by using REALM for Third Party Originators,” said Greg Schroeder, president of Comergence. “We’re delighted to add Bayview to our growing client base. By using our due diligence and monitoring services, continued on page 44

n National Mortgage Professional Magazine n FEBRUARY 2015

McLean Mortgage Corporation has announced that the company closed more than $1.33 billion in residential mortgage originations in 2014, which was within 90 percent of their alltime production record achieved in 2013. This level of closings was achieved despite the fact that the Mortgage Bankers Association (MBA) indicated residential loan volumes for the industry dropped approximately 40 percent in 2014 when compared to 2013. During its young seven-year history, McLean Mortgage has become an industry leader. having been ranked as an Inc. 5000 company by Inc. 500 Magazine. McLean Mortgage Corporation has been able to continue to outperform industry averages by delivering excellent customer service and a support culture which continues to attract quality loan officers and support staff. “We have grown to become one of the largest in the industry purely by way of organic growth through referrals instead of purchasing other companies,” said Nathan Burch, president of McLean Mortgage. “These referrals enable us to grow while still keeping our family-like culture which strengthens our ‘customer is first’ mission.” Burch was installed as a member of the Board of

Comergence Tapped to Provide Due Diligence Services to Bayview and Lakeview Wholesale

originator screening and due diligence services to the combined Bayview Loan Servicing and Lakeview Loan Servicing wholesale lending platform, a provider of real estate loans for agency borrowers and high-quality portfolio borrowers who fall outside the narrow conforming credit box. Comergence offers a full suite of hands-on and automated services for mortgage originator and appraiser due diligence and profile surveillance. Bayview & Lakeview Wholesale recently began using Comergence’s REALM for Wholesale Originators, a proprietary platform with a comprehensive database of over 400,000 records on every licensed mortgage originator in the country. REALM aggregates critical

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McLean Mortgage Celebrates Seven-Year Anniversary With Strong 2014

Directors of the MBA in 2014. “The journey we have embarked on during the past seven years has been gratifying for all of us,” said Pat Peavley, CEO of McLean Mortgage. “We have become a company of choice for those desiring a long-term career helping others achieve the dream of homeownership.”

LYKKEN ON

leadership

The Seven Steps to Becoming a Better Communicator By David Lykken

on a daily basis, there are several things that come to mind. Of course, I hear a great deal about adapting to the regulatory environment. I also hear a lot about vendor management and technological change. The list goes on and on. But, when I dig deeper, I found the

hen I speak with leaders in the mortgage industry about the challenges with which they grapple

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heart of what makes all of these issues so challenging centers around a single variable: Communication. The real difficulty in most business issues lies in how the messaging within those issues is sent and received. Are new regulations going to be properly understood so that they are properly accounted for? Are there going to be misunderstandings in the vendor agreement that causes resentment, or even litigation, later down the road? Have the benefits of the new technology been properly explained so that your people understand why they’re using it? Do some brainstorming. Think about any issue your dealing with, ask yourself what really bothers you about it, and I’ll bet that a struggle with communication is going to be in there somewhere. At its core, good communication is all about clarity. Organizations often fail with their compliance, because they lack a clear understanding of the regulations—a breakdown of communication. Relationships with vendors often sour because clear expectations are not set for each party—another breakdown in communication. And, as I mentioned, people are often resistant to adopting new technologies because they down have a clear grasp on its purpose—communication breaking down yet again. Clarity is at the heart of great communication. As a leader in your organization, it’s something that should always be at the forefront of your mind. So, how can you become a better communicator? It isn’t just about taking a class on public speaking. You’ve got to develop your character—who you are as a person and how you relate to people. To be a better communicator, you’ve got to be a better human being. Here’s how to do it …

The first rule of communication isn’t about how you send the message—it’s about how you receive it. If you want to become a better communicator, you’ve got to start with becoming a better listener. In his classic book, How to Win Friends and Influence People, Dale Carnegie tells the story of how he once met a botanist at a party. He was fascinated by botany and knew little about it, so he asked the man to tell him about his profession. All night long, he listened and begged the man to go on. Finally, at the end of the night, Dale Carnegie was told that he was the greatest conversationalist the man had ever met— even though he had hardly said a word! Here’s the thing, you cannot really know the best way communicate a message to people until you’ve heard from them first. When you listen, you discover what stage people are at in their knowledge. And you may even learn something you didn’t know that could cause you to alter the message you wish to convey. Always, always listen before you speak. The next step to becoming a better communicator is related somewhat to the first. You listen before you speak, not just because it helps you determine what words to say, but because it helps you determine how you will say them. Because the message isn’t just about what you tell people—it’s also about how you make them feel. As you’re becoming a better listener, you should also focus on becoming more empathetic. You should always strive to put yourself in the other person’s shoes. Ask yourself, how would I feel if I were receiving this message? When you can identify with someone on an emotional level, the right words to say will come naturally to you. And, more importantly, the people with

speaking. The final step to becoming a better communicator is becoming more articulate. Yes, it will help to strengthen your oral communication skills. But it would also be helpful to broaden your vocabulary. Learn new words by reading literary fiction or long-form journalism. If you have the time, you might even try learning a new language. Either way, the final step is about improving the words you use and the way you use them so that the people with whom you are communicating can be better reached. Going into the future, great communication is going to be what really sets great leaders apart from those who are mediocre. For the most part, all prob-

lems are—at their very core—people problems. When you can properly communicate with the people with whom you interact on a daily basis in business, you’re well on your way to becoming the great leader I know you can be. David Lykken is 40-year mortgage industry veteran who has been an owner operator in three mortgage banking companies and a software company. As a former business owner/operator, today David loves helping C-Level executives and business owners achieve extraordinary results via consulting, coaching and communications, with the objective of eliminat-

ing corporate dysfunction, establishing and communicating a clear corporate strategy while focusing on process improvement and operational efficiencies resulting in increased profitability. David has been a regular contributor on CNBC and Fox Business News and currently hosts a successful weekly radio program, “Lykken on Lending,” that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. He produces a daily one-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper Web sites across America. He may be reached by phone at (512) 501-2810 or by e-mail at dlykken@mbs-team.com.

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n National Mortgage Professional Magazine n FEBRUARY 2015

whom you are speaking with feel like you care about them. And, as the saying goes, people don’t care how much you know until they know how much you care. Lately, I’ve been really interested in the idea of transparency in leadership. Being more transparent can make you more trustworthy and build stronger character in you as a leader. And it is also absolutely essential in becoming a better communicator. Why is transparency so important in communication? Because it provides consistency. When you are open and honest in your communications, and don’t hide your intentions or have ulterior motives, you won’t be as likely to give people mixed signals. People will have a clearer idea of your expectations in your communications, because you will always be the same. People will be able to read you, because you will be an open book. The next step to becoming a better communicator is being more accessible. No matter how good of a communicator you are, people are likely to have questions about your expectations. If they can’t reach you, the communication will dissolve into confusion over time. Is your door open to your people? Can they reach out to you with their questions? How often to you check your email and other communications? If people can’t get a hold of you when they need you, they will most likely simply guess about what you want from them. Don’t give them that opportunity—be available. Even if you have mastered all of pieces of communication so far, it will be all for naught if you disregard this next step. After you’ve covered the basics in becoming a better communicator, you then have to become more organized. Because, here’s the thing— you can’t remember everything. You cannot remember all of your commitments. You cannot remember all of the people with whom you need to follow up. You probably cannot remember much of what you say. So, you’ve got to keep track of it. Do you take notes on your conversations, meetings, and other interactions? You probably should. Communication without organization is unreliable; keep your communication on track by keeping track of your communications. As you become a better communicator, you will always need fuel for your conversations. So, the next step to becoming a better communicator is to be more informed. If you have a firm grasp on what’s going on in your company, the industry, and the world, your communications will have more context. You’ll speak with knowledge and authority, and people will listen to what you have to say. Keep up on the current events—things that are happening from around the office to around the world. An informed communicator is an effective communicator. Finally, after you’ve done all of this, yes, you can take a class on public

Chairman, Regional Conference of the Mortgage Bankers Association and Executive Director & Counsel of the MBANJ, NJAMB and PAMB

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The Residential Segment of the Regional Conference of Mortgage Bankers Associations this year (its 32nd) will provide mortgage lenders with a combination of quality programming, unmatched networking opportunities at two cocktail receptions, lunch in the exhibit hall, two continental breakfasts, a first-class hotel at the Borgata … all at an excellent conference rate of $109. Once you pick up your badge, our entire conference is yours to enjoy! The event’s program starts with Barry Habib, who will tell our attendees where he believes the industry is headed in 2015. Barry’s bond and interest rate predictions for 2014 were very accurate! Barry will be followed by two great General Session panels: Regina Lowrie’s panel, one of the industry’s most popular in 2013 and 2014, will give you insight from key industry leaders who will discuss their views on where the industry is headed in 2015. Our second General Session panel, “The Future of Government Programs,” will be led by former FHA Commissioner Brian Montgomery, currently vice chairman of the Collingwood Group. The first session in the afternoon on Wednesday will feature Ken Markison, a much sought after speaker, and his panel of experts who will dive into RESPA and TILA to get you ready for the Aug. 1 deadline! Our Regulatory Panel will bring together speakers from the Pennsylvania Department of Banking & Securities, the New Jersey Department of Banking & Insurance, the New York State Department of Financial Services who will discuss common or recurrent problems discovered in their industry exams. For the first time, the panel will include attorneys that work closely with state regulators and who are familiar with recurrent violations they see in their practices. This is a unique opportunity to get a “heads up” on what your company should be prepared for before the state examiners come in. You can avoid the potentially costly problems that other companies have experienced by having a roadmap of obstacles to overcome! On Thursday, we will begin with a panel on vendor management, led by Ari Karen and Regina Lowrie. The CFPB holds the mortgage lender responsible for their vendors and third parties they deal with in originating mortgage loans. This is an opportunity to learn how to avoid the potentially expensive liability when vendors make mistakes that cause problems for consumers! Our second panel features two CFPB and legislative experts, Ken Markison and Jack Konyk, who will look at all of the other actions and proposals of the CFPB that can impact your production and profitability. While the industry has been focused upon RESPA and TILA issues, there are many other issues that you should know about and this panel will bring them to your attention. For those who are interested in commercial mortgage lending, the conference offers two days preceding the Residential Program with a General Session, special panels, two lunches (one with a speaker and the other in the commercial exhibit hall), and two cocktail receptions (commercial attendees are also invited to the opening residential cocktail reception on Tuesday evening, March 10). Well, now you will have to admit this is a very special conference, as it always has been a one-of-a-kind event See you at the Borgata! E. Robert Levy is chairman of the Regional Conference of the Mortgage Bankers Association and Executive Director & Counsel of the Mortgage Bankers Association of New Jersey, New Jersey Association of Mortgage Brokers and the Pennsylvania Association of Mortgage Brokers. He may be reached by phone at (732) 596-1619.

SPONSORED EDITORIAL

continued from page 41

Bayview has demonstrated a strong commitment to client experience, quality control and regulatory compliance.” “REALM for Third Party Originators is simplifying our mortgage broker approval process, adding ease of access, consistency and speed to an already streamlined process,” said Marcella DeCerbo, vice president with Bayview. “We especially like the monitoring and renewal process provided by Comergence. Comergence monitors the activities of our originators and alerts us of any changes and helps us easily renew our customer database with the most updated and current information.”

Wholesale One Adds to Its Charter Memberships

alternatives and giving us new ways to grow our business,” said Tom Hutchens, senior vice president of sales and marketing for Angel Oak Mortgage Solutions. “By being a part of the Wholesale One cooperative, we’re giving brokers confidence that we have been vetted as a lender for their non-agency loans.”

LRES Announces Acquisition of New AMC LRES, a provider of residential and commercial valuations and asset management for the mortgage, banking, credit union and real estate industries, announced that it has acquired Lenders Choice, a residential real estate appraisal management company (AMC) providing valuation services specifically for the mortgage industry. Headquartered in Tulsa, Okla., Lenders Choice specializes in fast and thorough completion of appraisals through its communications technology and software platform, expanding growth opportunities for LRES which proudly maintains nationwide compliance. Through this acquisition, Lenders Choice is now fully incorporated under LRES’ AMC licenses, gaining the ability to conduct business within all 50 U.S. states and jurisdictions. Lenders Choice customers are also exposed to LRES’ enhanced technology solutions, including easier systems connectivity and bulk upload capabilities through its DirectConnect Integration Hub, which is currently integrated with two loan origination systems and five loan service platforms. The acquisition enhances Lenders Choice’s current infrastructure with the ability to handle more volume. “We are pleased to welcome Lenders Choice into the LRES family and merge our best-of-breed solutions to enhance service levels for our customers,” said Roger Beane, LRES founder and CEO. “The acquisition aligns with the strategic vision of LRES as we continue to expand our national reach.”

Wholesale One has announced three charter mortgage broker members and the addition of two wholesale investors to the cooperative platform. Wholesale One is managed by a division of Altisource Portfolio Solutions. “The mortgage market is seeking cost effective and efficient access to lending products and services that drive productivity and help address important compliance needs,” said Greg Murray, chief executive officer of Wholesale One. “With our relationships in the mortgage industry we have quickly converted Wholesale One from a concept to an entity delivering value to members.” New charter mortgage brokers to Wholesale One include The Advantage Mortgage Group of Scottsdale, Ariz.; Advantage Rate Mortgage of Matthews, N.C.; and Ultimate Rate Mortgage Company of Des Plaines, Ill. “The cooperative model is attractive for independent brokers for the way it streamlines our fragmented marketplace and helps us drive efficiency and productivity,” said Stan Wang, president of The Advantage Mortgage Group. “We joined Wholesale One to help us grow our business and know our borrowers will benefit from the access to products, services and expertise while we benefit from reducing costs and getting assistance meeting complex regulatory Mortgage Professionals to Watch requirements.” In addition, two charter wholesalers will participate on the Wholesale One platform and work with brokers to find the best loan product for their borrowers. The charter wholesalers are Angel Oak Mortgage Solutions of Atlanta, Ga. and SterneAgee Mortgage of Orlando, Fla. The addition of the charter wholesalers immediately offers Wholesale l The Mortgage Bankers Association (MBA) has announced that Fowler One members the ability to access Williams, CMB, president of Crescent agency and non-agency loans. Mortgage Company in Atlanta, Ga., “Many brokers may not be aware of has been appointed chairman of the the lending options available for nonagency borrowers, so Wholesale One is expanding the exposure to borrowing continued on page 64 WILLIAMS

A Message From E. Robert Levy

heard on the street

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Just Ask

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Eric Weinstein & Laura Burke nowledge is power. Power translates to success, whether it is dollars in your pocket, stronger leadership, increased bottom lines or peace of mind, we are here for you. This month, we are introducing a new column for questions relating to starting a business, managing a business, training, networking, tax-related issues, corporate security policy, fraud alerts and compliance. All answers are for informational purpose only, and are not intended to practice law, or are meant to provide tax advice or tax opinions. After reviewing our information, we both recommend seeking legal counsel or the advice of a tax professional. Please e-mail us at

JustAskEricandLaura@gmail.com to voice any questions or problems. We are here for you!

Sokhea Ean, president of Ean Homes LLC asks … This may sound like a really dumb question, but how important do you think it is to utilize all social media outlets: Facebook, Twitter, LinkedIn, Instagram, etc. for a new mortgage broker? Eric’s reply to Sokhea … My personal advice is to have a presence, but to not spend a lot of time and/or money on it. It is like the old Yellow Pages. You had to be in it to prove you were a real company, but

you never really got any customers from it unless you paid for a full-page ad which only the big boys could afford. I have tried it all and never received one lead from any of it. Of course, it will be argued (mainly by vendors of such products), I did not spend the “investment” it would take. Then it becomes a cost/benefit analysis, but I really don’t believe it would be cost effective for me. Mainly, my borrowers are previous customers or referrals from real estate agents or other people who have heard of me. This is the cheapest form of advertising and the end result someone starting out should strive for. I think all the hype

about the results are way overblown. Again, this is my opinion Laura’s reply to Sokhea … I do believe there is a benefit to having a presence in most social networking media. It is here to stay, and yes, I have gotten business from using it, not a lot but a few past clients who saw me at the right time and it triggered their memory, “Ah, I need to call Laura, instead of so-andso.” It can be used as a subtle reminder that you are in the business without hitting everyone over the head with a hard sell, and business blasts nightly, unless you are a company and you choose to market

k Eric & Laura the company that way. I think as a private individual a nice mention from time to time is the best way, subtle undertones that won’t turn friends away on Facebook, Twitter and I personally feel you could be a little more aggressive with LinkedIn, but remember that LinkedIn is a business network, so you reaching out would probably be better served among those that you have a familiarity with versus an unknown on LinkedIn. None of the social media have a high cost, if any for the use of it. My recommendation is you have nothing to lose, so use it for 90 days, and then make an evaluation, was it worth your time? If so keep on using it, maybe increase your use, add more attributes, the more benefit to the user, the stronger your response rate will be.

Unbalanced in Chicago asks …

I am wondering if all origination jobs are strictly commissioned-based. I have been in the business for three years and with a family I find it very difficult to budget my income, as my closings tend to fluctuate. Are there any salary-type paid positions for loan originators. If not how did you manage your budget when you guys were originating?

Eric’s reply to Unbalanced … Yes, I am sure there is a bank somewhere that probably pays a salary for loan originations, but I would not want it. The whole purpose of being on commission is to motivate employees to go out and get business. If they are paying you a salary, they are pretty much saying, we got enough business coming in, we just need someone to work the files. Someone like that is an “order-taker” not a salesman.

Does writing this column get you much business?

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Laura’s reply to Roy … Nice, Eric! My take on it is similar only I convince myself there is an intrinsic benefit. For me I love to write, so sharing my knowledge or lack thereof, is something I enjoy doing. I don’t think the readership of National Mortgage Professional Magazine are looking for loan originators, but I did think maybe once I would get a call relating to taxes, but like Eric I have not. But, there are benefits. Especially if you are trying to expose yourself as an expert in your field, there is no greater compliment than to have your article chosen for publication. I have written articles for other types of journals, and also for a local newspaper, that have brought me business. So I write for the enjoyment and challenge to write with new angles, new eyes and of relative importance to our readers.

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We are Califor Premie nia’s r Private Direct M and Br oney idge Lender

Roy Turr in Pennsylvania asks …

Eric’s reply to Roy … I cannot speak for Laura, but all I do is loans. I very much doubt any potential customers subscribe to National Mortgage Professional Magazine. I do, however, get tons of spam since my email is in the bio. I have gotten calls from out of state mortgage brokers who have promised to send me a Virginia deal, but I have never actually gotten one. Sometimes, I will connect with someone who likes reading my articles and are very complimentary, but I have never gotten a plug nickel out of it. Being a scribe is a lonely profession. You don’ do it for the money … hell, I don’t know why I do it. Laura?

“Order-takers” do not get paid very well. Salesmen are paid very generously. If it is a matter of not getting enough business, I understand your point. Just be aware, you can probably find something in a different industry that makes you more money than being a mortgage drone in a large bank. On the other hand, if it is a mat-

CFPB Finalizes Amendments to TILA-RESPA Integrated Mortgage Disclosure (TRID) Rule By Gavin T. Ales

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On Jan. 20, 2015, the Consumer Financial Protection Bureau (CFPB) finalized minor amendments to the TILA-RESPA Integrated Disclosure (TRID) rule, dubbed the “Know Before You Owe” mortgage rules. These minor “tweaks” to the rule address the requirement for providing revised disclosures when a consumer locks a floating interest rate, additional spacing for language regarding construction loans that may take more than 60 days to settle, the provision for the placement of the NMLSR ID on the disclosures, and other non-substantive corrections such as minor wording changes and regulatory clarifications. The amended rule requires creditors to issue revised disclosures within three business days of a borrower’s election to lock a floating interest rate. Before this amendment, the rule would have required creditors to provide revised disclosures on the same day the borrower opted to lock a floating interest rate. In October 2014, the CFPB issued a proposed rule that would have extended this timeline to the next business day rather than the same business day. However, the amended rule recognizes the logistical difficulties a same-day requirement would present to creditors, including possible restrictions as to when a borrower would be able to lock a loan so as to allow sufficient time in the day to provide revised disclosures. Creditors are currently required to issue a revised Good Faith Estimate (GFE) within three days of locking a floating interest rate, so this amendment provides consistency with current requirements for providing revised disclosures. Additional amendments to the TRID rule identify a particular location on the Loan Estimate form where creditors could include language informing consumers that they may receive a revised Loan Estimate for a construction loan that is expected to take more than 60 days to settle. The existing rule allows creditors to issue a revised disclosure prior to 60 days before consummation if the original Loan Estimate clearly and conspicuously states that a revised disclosure could be provided. The amended rule provides that the placement of such language regarding a revised disclosure included under the master heading “Additional Information About This Loan” and the heading “Other Considerations” would satisfy the “clear and conspicuous” standard. Finally, in addition to some minor word-changing and clarifications to regulatory text, including correction of some regulatory cross-references, the revisions include an amendment to a previously reserved section of the 2013 Loan Originator Final Rule to require placement of the loan originator’s NMLSR ID on the Loan Estimate and Closing Disclosure. 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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just ask eric & laura continued from page 47

ter of you never having had to learn to budget, that is a simple fix. Take how much money you made last year and divide it by 12. That is your monthly budget. When your commission checks come in, put them in a separate bank account. Every month, only draw out your budgeted income. In good months, there will build up a cushion for the bad months. In bad months, you will dip into your savings. That’s how grown-ups do it. Laura’s reply to Unbalanced … Eric, nice reply. I like the idea of putting the money in separate bank accounts, what a great way to keep your hands out of the reserves. All too often, new and old loan originators live paycheck to paycheck, once in the cycle, it is difficult to come out of. If you are accustomed to a weekly paycheck, the company you are working for will pay you an hourly minimum wage and some banks may also pay out an additional set amount each month called a draw against commission. When I first started in the business, the bank I worked for did it that way, we all got a small amount I think it was something like $1,500 a month on our first paycheck and our second check covered the draw. We got paid every two weeks. If you didn’t cover your draw I think they let you go into two draws totaling $3,000 before they turned off your draw. For most loan originators at that time this wasn’t an issue at all. I do agree that being on commission has its advantages. You are a contract employee, you can work the hours you choose. I do know that with all of the new changes in the laws and compliance that many loan officers are now considered employees instead of contractors. They are paid minimum wage plus commission. But by being an employee you must come in and leave when your re told, and follow the lenders/banks rules on time off. Back in the day, we could come in when we needed to and we stayed out in the field producing loans, networking and building relationships. We never had to punch a clock. I only had to attend mandatory meetings. If I were you, I would plan an income strategy, determine how much money you must have each month, let’s use $4,000 as an example: $4,000 X 12 = $48,000. You know you need to make $48,000 annually and $4,000 per month to make your budget work, and anything over is plentiful, and less is a shortfall. The next step is to determine your average commission on both refis and purchases. To make it simple for the ease of this explanation let’s assume my average loan size is

$225,000, and I make about $2,000 per transaction. I need two transactions per month to close. Let’s plan for some fallout so let’s try to close a third transaction every month, this will help alleviate any shorter income, lower priced closings, and cover any fall out. This is similar to Eric’s plan now, start banking the amount you need for each month you have overage, pay the bank first building your nest egg. You can determine how you want to spend, or save your overage after you know you are covered for at least three to four months, as a cushion. I hope this helps lend some insight into how others are handling their commission based incomes.

Friendless in Seattle asks … I recently tried to close a refinance for a friend that did not go as well as I thought it would. They were upside down on their property and we were not able to get them the loan program and interest rate I quoted them. I don’t want to lose our friendship, have you had any experiences in the past that caused a family member or friend to be upset with you professionally? If so what would be your advice on handling working with friends and family? Eric’s reply to Friendless … I have closed loans for relatives making zero money and they have accused me of ripping them off. First, you should be open and honest throughout the loan. Pre-explain to them the process and the potential pitfalls. Do your best to check property values before wasting their money on appraisals you think might not come in at value. I have had plenty of loans for friends, relatives and customers go sideways, but usually they understand it was not my fault because they were aware of the facts and the consequences if things did not go as planned. In this case, it sounds to me like you did not warn them what might happen if the value came in too low. That makes it your fault they wasted the appraisal money. They should have gone into it knowing it was a risk. I would give them back the appraisal money if you want to make it right. Relatives, friends and customers you just met should all be treated the same. There is no reason for them to get upset with you unless you did something wrong. Everyone makes mistakes. If you do err, own up to it, fall on your sword and pay the damages. If they understand the process, how can they blame you if you did nothing wrong?

Laura’s reply to Friendless … I too have had things go awry. It was always a standard joke my processor and I had, the people you work the most for appreciate it the least. Oftentimes, I have dug into my commission to give a friend or family member a great deal, often to my detriment. I have taken a solemn vow not give advice on rate locking to anyone, and in 20 years, I have been pretty good about the routine, “I don’t have a crystal ball, if I did I could predict so many things in advance.” My customers always understood the volatility of the market. I could tell them, there was going to be a market factor happening the next day and let them make their own choices. Well, I’m sure you guessed it, the one and only time I gave advice, I told my daughter not to lock and wait until the next day. Yes, the rates went up and never came back down until way after she closed. I felt horrible, I was already giving her what I was allowed to give her out of my commission, but I did feel terrible and ended up giving her another concession out of my pocket. I agree with Eric, if you make the mistake, own up to it. If you didn’t then it’s your choice as to how you want to handle it. Clients often have selective amnesia, so how far do you want to go to make peace. Know that no matter what you do, it will still be a memory of the incident that happened. Best of luck to you!

When is a room, a room? I have a log cabin home where the appraiser says there are no bedrooms, which is a deal killer. There is an enclosed foyer which the listing agent calls a room. The appraiser says it is not a bedroom.

1. Entrance: A bedroom needs at least two methods of egress, so it should be accessible from the house (commonly through a door), and then have one other exit (window or door). 2. Ceiling height: A bedroom ceiling needs to be at least seven feet tall. It’s okay if some portions of the ceiling are below this level, but at least 50 percent of the ceiling needs to be a minimum of seven feet in height. Most ceilings tend to be at least eight feet tall, so ceiling height is not usually an issue 3. Escape: A bedroom must have one

Laura’s reply to Roomless … WOW, Eric has really done his homework on this one, nice job! I think you have adequately addressed the question of when a room is a room? I would like to add the condition of a room is also very important. It’s the appraiser’s job to check all rooms for defects, and/or problems such as mold, leaks, broken windows, peeling paint, and the list goes on. If the room has removable items, these items are not included in the appraised value. For example, a large book case that is not attached to the wall, gives no added value to the appraised value. I am wondering if different areas of the country have different methods of classifying a room, as I do believe internationally it would be different.

Disclaimer: All answers are for informational purpose only, and are not intended to practice law, or provide tax advice or tax opinions. After reviewing our information we recommend seeking legal counsel or the advice of a tax professional. 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. He may be reached by phone at (703) 505-8692 or e-mail eweinstein4u@gmail.com. Laura Burke is an author and trainer with 20-plus years of experience in the mortgage arena. She may be reached by e-mail at lauralynnburke@gmail.com.

Eric & Laura welcome your questions, please send your inquiries to JustAskEricandLaura@gmail.com.

www.LykkenOnLending.com

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Eric’s reply to Roomless … Four things a room must have to be considered a bedroom:

A bedroom should probably have a closet since most buyers expect one, but technically the International Residential Code does not mandate a bedroom to have a closet. Nevertheless, Underwriters will request a value adjustment if there is no closet in the room.

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Roomless in Seattle asks …

other method of egress beyond the entrance point. A door to the exterior works as an exit point, and so does a window. According to the International Residential Code, a bedroom window can be between 24 and 44 inches from the floor, it needs at least 5.7square feet for the opening, and it must measure no less than 24 inches high and 20 inches wide. 4. Size: The room should be at least 70-sqare feet, and more specifically, the room cannot be smaller than seven feet in any horizontal direction.

The Buy-to-Rent Mortgage Opportunity By Mark Mohl Since 2012, Wall Street investors have spent upwards of $25 billion to snatch up between 150,000 and 200,000 singlefamily homes, which they then put up for rent. While big investors could self-finance their acquisitions, smaller landlords intent on cashing in on distressed properties were forced to endure the residential mortgage underwriting process for every home they added to their portfolio, each one becoming more difficult to finance. Today, there are millions of these smaller buy-to-rent landlords who are creditworthy and eager to borrow, but with few good options for financing. And there is still no shortage of the kinds of properties they want to buy on the market. This is an excellent opportunity for lenders who know how to meet their unique needs. Someone who understands their business model Buy-to-rent investors may consider themselves commercial enterprises but they’re still investing in residential real estate, which lenders are conditioned to think of in a certain way—and not just lenders. Both Fannie Mae and Freddie Mac impose limitations on the number of investment properties a borrower can own before their financing options dry up. While they can always seek financing from hard money lenders, the prices is high. In today’s market, the buy-to-rent investor can make good money, buying up real estate at distressed prices and then renting it out to a large base of potential renters. Without a lender who understands how this business works, financing is very difficult.

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Access to loan products that fit their needs Even when they find a lender who will finance initial purchases, it can be very difficult for these investors to refinance them later in order to pull cash out to expand their portfolios. Traditionally, these investors have had to beat the bushes to find partners or hard money lenders to finance their acquisitions, when cash wasn’t available. Before the foreclosure crisis, investors could approach homeowners and secure owner financing for investment properties, but when the banks became the owners, this avenue was no longer available. The broker who can bring the right financing tools to the table will succeed. A streamlined application process The right products still will be of no benefit to the investor who cannot make it through the laborious underwriting process. Loans to buy-to-rent investors are not like any other loan product. Why then should they be underwritten like other loans? Only recently have lending partners entered the game who can provide the kind of forward thinking underwriting that can make these deals easy to originate, for both the broker and the real estate investor. A real financial partner Ultimately, what these landlords need is a real financial partner who will help them build their businesses. This has not been the way these smaller investor owners were viewed by the industry in the past. Brokers that begin to see this opportunity clearly and find ways to serve this niche will find a new source of revenue and a line of business that could quickly eclipse the broker’s traditional business. Mark Mohl works with B2R’s wholesale lending platform, advising third parties and facilitating access toB2R’s financing options for their clients. For more information, call (888) 495-7731 or visit http://info.b2rfinance.com/NMP.

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MBA’s Mortgage Action Alliance A Message From MAA Chairman Fowler Williams

s we gear up for a new political cycle, I’d like to introduce myself as the new Chairman of the Mortgage Action Alliance (MAA). My name is Fowler Williams. I am president of Crescent Mortgage in Atlanta, Ga., and I’m honored to serve as your MAA Chairman for the next two years. I’m thrilled to be taking over where outgoing MAA Chair Amy Swaney left off. MAA is larger and stronger than ever, and I’m excited to be joining a winning team. I have strong ties to the Mortgage Bankers Association (MBA), having been a featured speaker on panels at previous MBA Annual Conventions, and Secondary and Independent Mortgage Bankers Conferences. I also serve on the MBA President’s Advisory Group at the request of Dave Stevens, MBA’s president and chief executive officer. I have been deeply involved with MBA’s prior industry advocacy efforts, and I’m dedicated to continuing and improving the MAA’s very real and positive impact on the issues facing the real estate finance industry. I believe our strength is measured not only through our aggregate numbers, but also through intensity of involvement. Our “Calls to Action” via MAA are key elements of our overall advocacy strategy. I hope you take these opportunities to connect with your elected officials, and educate them about the consumer impacts of policies forged both in Washington, D.C., and state capitals throughout the country. For the next two years, we need you as mortgage professionals—and advocates, to take even greater advantage of the opportunities that MAA offers the industry. Specifically, I’d like to work with individual companies and state associations alike to broaden MAA’s enrollment, which will allow us to be more effective at the state and federal levels in realizing our advocacy needs. I tip my hat to Amy Swaney and the incredible work she has done over growing MAA these past two years. I hope to maintain the momentum she’s established as I take the reins. I have no doubt that we will continue to see our enrollment numbers and effectiveness increase. These next two years, we have a great opportunity to make this program even more effective and cohesive at a regional and national level. The larger the group, the louder the voice! If you would like to run an MAA campaign, please contact Stephanie Graham at (202) 557-2818 or e-mail sgraham@mba.org to receive an enrollment campaign kit and learn more about how you can engage your colleagues and employees in MBA’s advocacy programs. Real estate finance industry professionals who wish to join or learn more about MAA can do so at www.mortgageactionalliance.org. If you have any questions regarding MBA’s advocacy programs, please contact MBA’s Assistant Director of Political Affairs Annie Gawkowski at (202) 557-2816 or email agawkowski@mba.org.

Fowler Williams is chairman of the Mortgage Bankers Association’s Mortgage Action Alliance. He is also president of Atlanta, Ga.-based Crescent Mortgage. Williams speaks regularly to financial institutions and their respective organizations on compliance, regulatory changes in mortgage lending, and assessing their overall mortgage operations to maximize income, while minimizing the risks associated in today’s mortgage lending environment. He may be reached by phone at (800) 851-0263 or e-mail fwilliams@crescentmortgage.net.

Once successful leadership is in place, lenders can be sure their employees have the proper resources and support, which leads to higher engagement and productivity levels on the job—and raises your company’s bottom line. A 20-year veteran of the mortgage industry, Mike Maida began his career in loan origination and secondary market lending, before becoming national sales director for GSF Mortgage Corporation. Maida currently oversees branch development, including retail, wholesale and correspondent relationships, as well as recruitment. He enjoys volunteering with his wife and daughter, and is an avid golfer—for business or for leisure.

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w w w. l i s t i n g b o o s t e r. c o m

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According to the Blue Ocean Strategy, successful leadership: continued from page 35 l Focuses on what acts and activities leaders need to undertake to boost their teams’ motivation and business results, not on who leaders need to be. recruiting process is crucial. Begin by Successful recruiting l Connects leaders’ actions closely assessing how and where your compa- starts with leadership to market realities by having the ny guises new employees, and educate Of course, what you do after a new people on the frontline define leadership on recruiting best prac- recruit is on board is what determines what actions would enable them tices. The key lies in identifying your your employee’s and your company’s to thrive and best serve customers company’s mission and goals, making success. and key stakeholders. those initiatives clear to candidates Gallup has found that managers and then recognizing individuals who who focus on their employees’ l Distributes leadership across all levels because outstanding organizaare up to the task. strengths can practically eliminate tional performance often stems from Many of these methods are bor- disengagement and increase producthe motivation and actions of middle rowed from the business book and tivity and profitability. On the other and frontline leaders who are in closphilosophy, The Blue Ocean Strategy, hand, employee engagement falls flat er contact with the market. written by W. Chan Kim and Renee or falters, when left unmanaged. Mauborgne. The Blue Ocean Strategy is based on the idea that businesses can “create uncontested market space, while making the competition irrelevant.” According to the book, the aim of applying the Blue Ocean Strategy is not to outperform the existing industry competition, per se, but to create entirely new market avenues (the “blue ocean”) from which you can then draw actual capital opportunities. For example, the book suggests refocusing recruiting efforts away from “the big fish.” Instead, look for growth opportunities in markets that are smaller or brushed over by some of the industry’s larger players— areas where you know that you as a mortgage lender can make an impact. More importantly, look for individuals or lenders who can benefit from partnering with you. Employees who feel comfortable, motivated and supported by their employers are highly engaged—and that is the foundation to your company’s success. In fact, Gallup reports that organizations with an average of 9.3 engaged employees for every actively disengaged worker experienced 147 percent higher earnings per share (EPS) when compared to their competition. That’s no small potatoes. Smaller and mid-sized lenders benefit from their economy of scale. They can seize opportunities with companies that are both proficient in what they do and community-centered, so they can quickly implement their processes (without all the bureaucracy of a larger corporation) and get out of the way. That being said, it’s important not to jump in with both your feet wet. It can be easy take a candidate’s word regarding their work experience and levels of ambition. Instead, take your time to “get used to the water;” i.e. getting to know the candidate before you invest in their services. Building better relationships with potential partners well before an offer letter is even on the table ensures that the candidate is a good fit for your company. When you find a perfect match, your company blossoms—and benefits—in big ways.

recruiting in a blue ocean

“Your business has changed. No longer will you be able to stare at the telephone hoping it will ring.”

How to Increase Your Business 80 Percent This Year by Building Client Relationships By Kerry Johnson, Ph.D.

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Tim was on the verge of bankruptcy. Nobody seemed willing or motivated to refinance or purchase. Still, Tim didn’t want to have to start a new career. Real estate agents seemed to spin his wheels. While he was able to meet with CPAs and financial advisors, they seemed more willing to receive referrals than to give them. Tim did five loans in June and only three in July. A classic downward spiral. Not enough business even to keep the doors open. Then he decided to do something about it. He became proactive about sales instead of reactive hoping business would just call in. He became a sales-focused mortgage broker instead of one waiting for the phone to ring. This month, Tim put 15 loans in the pipeline. He hired another two sales pros, instead of standard cookie cutter loan officers waiting for the phone to ring. Tim is on track to

originate 180 loans this year while many other brokers are closing their doors. How did Tim do it? How did he turn his company around from a money loser to a money maker? Years ago, prospects shopped your rates. If you were the lowest, you got the business. Often prospects would even call asking for your rates and fees, and then hang up without even saying thank you. Prospects haven’t changed, but you should. According to the University of Connecticut, 87 percent of your clients care more about their relationship with you prices. This seems illogical unless you consider why they bought in the first place. Al was like that. He refinanced my house in 2008 and didn’t even so much as dial the phone to say thank you for the business. Although I did get a postcard telling me how much his company has grown. I have refinanced once since then, with anoth-

er lender. I added 3,500-square feet to my home, did a new first for $1 million with a different originator. I didn’t use Al. Why? Did Al do a good job? Yes. Didn’t he lower my monthly payment? Yes. Why did I use the competition? Al lost the relationship. He didn’t keep in touch. While Al did send a postcard every six months, he made me a transaction, instead of a client.

What clients want According to the National Consumers Union., only 17 percent of products purchased last year for more than $500 used the previous lender. This means that you have likely lost contact with your clients. Many producers are still waiting for the phone to ring. But when customers were asked if they would purchase again from the last vendor, 89 percent said yes, if their vender had bothered to follow up on the relationship. According to Forrester Research, the three key items your clients want most are: 1. A working knowledge o f what they bought Your clients really want to know what they bought and a contrast about other options. They don’t want to become experts. They depend on you for that. But they do want to know what they have and what is available. 2. They want you to monitor their mortgage as if it were your own You are constantly looking for ways to gain more value. You are privy to the most current products on the market. Your clients want the same consideration. 3. They want frequency in their relationship They want to hear from you at least every three months. I mentioned this to one originator who sends a newsletter every quarter, didn’t that make a difference? The answer is, would you rather hear from a trusted advisor personally or see her name on a sheet of paper every once in a while?

How to triple your sales this year Peter, a mortgage broker in Atlanta, has 3,000 clients from business he has originated over the past 10 years. A treasure chest of future business. Lately, he has been striking out calling realtors who are also suffering. They are sometimes rude and often flaky. So Peter started calling his past borrowers. At first it was awkward. He felt guilty calling borrowers who hadn’t heard from him in the past three years. But he sucked up his call reluctance and dialed anyway. Surprisingly, nearly everyone seemed glad to hear from him. They asked about his family and even expressed gratitude for the great job Peter did on their last loan. Peter is now using a three-step process that is earning him an 11 percent closing rate on all past borrower calls. Here is his three-part strategy:

Catch up, update, referrals 1. Catch up Peter calls the client and catches up on their family. He asks about little Johnny’s soccer schedule and did dad volunteer this year again to be Johnny’s coach. Is mom working or did she realize her dream staying at home? 2. Update Peter then tells the client where rates are right now and how that will affect their home value. This appraisal estimate is the silver bullet for real estate agents helping them motivate sellers to list their home. But even when the client doesn’t want to sell, they still want to hear about their home’s current value and what is likely to happen over the next year. Peter did some research on their rate before the phone call. He also knows ahead of time if he can save them money. He asks them if they would like to combine the first and second to save another $500 a month. Most say yes. But even when he cannot offer savings, he knows how to follow

up with a product they canâ&#x20AC;&#x2122;t say no to. The average American household has $17,000 in credit card debt. Peter pitches that for effect. He then asks if the client has more or less than $17,000 to get the conversation started. He then trial closes by asking if they could write off the interest payments on their credit card debt and save 30 percent, would they be interested? At that point, Peter starts the discussion about a home equity line of credit and/or a second mortgage. Eleven percent of all past borrowers ask to start an application.

every client knows 250 friends, relatives and neighbors they could refer. So he expects to get three referrals on every phone call. In fact, 55 percent of all his clients will refer at least five friends. All Peter has to do is ask. But he doesnâ&#x20AC;&#x2122;t make the mistake of advertising for referrals as most LOs do. He doesnâ&#x20AC;&#x2122;t say, â&#x20AC;&#x153;If you know anybody, please tell them about me.â&#x20AC;? He says, â&#x20AC;&#x153;Who do you know who could benefit from the kind of relationship we have had so far.â&#x20AC;?

3. Referrals After the questions about loan programs and consolidating debt, Peter asks for referrals. He knows that

We know that a typical buyer makes a car purchase every five years, leases a car every 3.2 years, refinances their mortgage every seven years, makes a

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major financial investment every nine months and purchases an insurance product every 10-18 months. Mortgage Broker Davidâ&#x20AC;&#x2122;s formula for success is 5-2-11: Five contacts a day, two appointments a day, and 11 closed sales a month. The math is simple. The results are spectacular. David cannot hire enough new sales producers to take up the overflow. Originators who will make outgoing phone calls are hard to find. But the ones who do are now making $200,000 a year. Even in a flat economy. Your business has changed. No longer will you be able to stare at the telephone hoping it will ring. There are strategies you can use to even double the business you were able to snare over the last three years. Your

business now is all about relationship, rapport and trust. The better you can manage them, the more business you will gain. Dr. Kerry Johnson is a frequent speaker at mortgage industry conferences on topics like â&#x20AC;&#x153;How to Read Your Clients Mindâ&#x20AC;? and â&#x20AC;&#x153;How to Increase Your Sales by 80 Percent in Eight Weeksâ&#x20AC;?. He is the author of six books, including Mastering the Game: The Human Edge in Sales and Marketing, WILLPOWER: The Secrets of Self-Discipline and his newest book, Why Smart People Make Dumb Mistakes With Their Money. For more information, visit www.kerryjohnson.com/coaching, call (714) 368-3650 or e-mail kerry@kerryjohnson.com. 53

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Constant 24 hour turn time standard.

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Realtors and title companies rave about our service.

“While we might not all agree on which CRM solution is the best, I think we should all agree upon a CRM’s value in general.”

Customer Relationship Management Systems: Why They Should Matter to You By Ericka Smith

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It’s a new year and it’s a pretty safe bet that we’re all looking at how we can improve our businesses. We’re looking at our 2014 business practices and trying to see what we can do to take our production up a notch. We’re estimating the number of prospects we will contact each day, the deals we will close, and referral partnerships we hope to gain. This is great stuff, but we should also evaluate the systems we’ll use to manage all this. So where do you start? Before we can answer that, let’s ask ourselves a few more questions. How many meetings/calls do I plan to schedule on a regular business day? How will I track which prospects, clients, or referral partners I need to call back and when? How many people will I talk to and what will I do with the notes I take? These are very important questions that are easily managed if you have access to the right tool. So, what is the right tool? A CRM system. At its core, a CRM system, or “Customer Relationship Management” system, allows businesses to manage relationships and the data associated with those relationships. In our industry, there are several types of CRM systems available. While we might not all agree

on which CRM solution is the best, I think we should all agree upon a CRM’s value in general.

Why you should utilize a good CRM system A good CRM system helps you manage your time and tasks more efficiently and can improve your productivity. A CRM improves efficiency by enabling you to view all of your customer’s data in one place, preferably, using a cloud-based platform. Cloud-based software can be especially useful to teams that share responsibilities for a specific client. Did Mary already e-mail that prospect or send that Realtor the new FHA MIP informational email? If the data associated with a client, prospect, or referral partner is all in one place, confusion is eliminated. It’s 2015—stop writing important client information on sticky notes or other random pieces of paper! A good CRM allows you to open your customer’s record, review notes from previous conversations, and update notes as you speak with them. This practice keeps everyone in the loop and helps provide better customer service. A good CRM system also helps you schedule tasks associated with a record. For example, if John Q.

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Customer says that he is getting married and will be looking to purchase a new home in four months, what would you do? Don’t pull out a sticky note and pen! With a CRM, you can add this information into John Q. Customer’s record and assign yourself a task to call him back in two or three months. The system should also put John on an automatic periodic email campaign to keep your name in front of him. Additionally a good CRM system would have a nice card to send John congratulating him on his marriage. Now imagine you have ten, fifty, or one hundred prospects you need to keep track of and call back at certain times. How would you manage this without a CRM? Now what about messaging? In the age of CAN-SPAM, we can’t write an email message and blast it out to 100 people through your personal accounts. So how do you accomplish this? By using a CRM with e-mail messaging capabilities, you can send CAN-SPAM compliant messages to an individual, to specific segments of your database, or to everyone at one time. Some systems provide compliant email templates, on a variety of topics, for you to use any time you want. No more waiting for compliance approval. Admit it … your spreadsheets and sticky notes cannot do that.

Even better CRM solutions An even better CRM system will evaluate your customers’ data and alert you when it may be time for them to refinance or notify you when they have listed their home for sale. You should also be able to sort your database by pertinent loan data. For example, recently announced changes to the FHA MIP premiums has many loan officers mining their FHA customer data for refinance opportunities. A good system will also offer a calendar that populates with tasks related to a specific customer. Remember John Q. Customer? If you didn’t, you would receive a reminder to call him anyway. In addition to tasks that you assign yourself, a good system will alert you to customer birthdays and loan anniversaries. It never hurts to have another reason to reach out to someone and start a dialogue.

Top-notch CRM systems have sophisticated campaigns that you can assign your records to receive based on record type—referral, client or prospect. For the sake of clarification, a campaign is a set of events (e-mails, reminders, tasks, direct mail pieces) that are scheduled to deploy based on certain dynamic dates (birthday or closing dates, for example) or time periods (30 days after closing). Ideal systems will allow you to keep track of any marketing messages you have sent to a particular record and determine if the recipient even opened them. For the busy loan officer who wants to stay top of mind with their customers before, during, and after the loan closes, a robust CRM system is best when there is full integration between the CRM and your LOS system. Full integration, or syncing, ensures the data in your CRM matches your LOS. Syncing allows automated messages to deploy to clients based on their loan status. For example, if your LOS system records receipt of an appraisal, an automated message can deploy to your customer letting them know that the appraisal has been received. Good communication during the loan process ensures a happy borrower.

Time is your most valuable asset What’s worth more than a good CRM? Your time. There’s not a person in this industry who can say they don’t want more time. We’re all trying to originate more loans, get more leads and acquire new referral sources. Since there’s no system that will develop referral partners or attend networking events for you, you need to do the next best thing: find a system that allows you to spend more time doing those high-level activities. Investing in the right CRM system is an investment in yourself, your prospects, your clients, and your partners. 2015 can be a different year if you make the right investments. Ericka Smith is marketing coordinator for Brookfield, Wis.-based Inlanta Mortgage. She may be reached by phone at (262) 439-4283 or e-mail erickasmith@inlanta.com.

“When the customer comes first, the customer will last.”—Robert Half

One-on-One Marketing By Tory Tarsitano, CRMS

continued on page 56

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setup for the loan officer to input specific criteria to be triggered to hit their ‘Hotlist’ based on the following: Rates drop a certain percentage, savings for said customer is a certain amount, equity has reached a certain amount, appreciation, ARM re-pricing soon, loan anniversary as well as the client’s birthday and so on. The system runs the market data against the current loan product and rate in each LO’s system and therefore creates a loan officer’s ‘Hotlist’ for the day. The loan officer will get an email showing how many deals are on their Hotlist for each particular day and have icons to show what it’s on the Hotlist for i.e. rate has dropped 0.75 percent; savings over $100, loan anniversary, etc. You can also filter the Hotlist by loan amount, loan program, closed date, rates, savings and the list goes on and on. There is a multitude of ways to utilize this system and you can select whatever you choose for that specific day so trying to find leads should not be a problem … trying to keep up with them should be the biggest problem. The e-mail campaigns are automated, and the system manages the ongoing delivery for the loan officer. You simply select from a list of e-mail campaigns that are set up in your account (some have been created by the CRM company but most are developed inhouse by the marketing manager so they are specific to our loan officers’) and there will be an e-mail sent every week or so depending on the campaign selected. Some examples of the e-mail campaigns are: Introduction to our Company, First-Time Homebuyer, FHA Campaign, Refinance (with rates and without), Purchase, Post-Close campaigns, Holiday, Credit Repair, and Real Estate Agent campaigns. There are also an abundant number of letters in Word Doc format that have been created to mail out (specific to the loan officers wants or needs for that particular client) to anyone who does

where they are at and we will continue to track their loan and contact them as soon as a more beneficial opportunity becomes available. The first-rate customer service remains to be the biggest reason the majority of our clients are a product of referrals from previous clients we’ve worked with. We can also pull reports within the CRM to show what e-mails went out, who opened them and when they opened their e-mails. This can be targeted by certain date timeframes or specifically to one campaign or email sent out by the loan officer. By looking at this report and

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We utilize a one-on-one marketing approach tailored to each loan officers’ individual vision and we have many tools in place that enable us to accomplish this. For starters, my company’s loan officers have weekly meetings with their marketing manager. This has proven to be highly advantageous in regards to highest and best use of loan officers’ marketing time and their overall increased productivity. By meeting one-on-one with their marketing manager this helps them maintain their clientele within their CRM (Customer Relationship Management system), manage their day-to-day marketing objectives, supply their current prospects and referral partners with relevant market information via e-mail campaigns, and brainstorm ideas on other marketing opportunities. The CRM provides an array of communication geared toward customers, prospects and referral partners. The marketing manager uploads all prospects and closed loans from their LOS system to the CRM system weekly. The marketing manager will meet with the loan officer weekly to guide them through the fundamentals of the CRM and help ensure the most efficient and effective way to utilize the system. In that weekly meeting, they will pull a report showing the new prospects and closed clients from the prior week and can simply put them on the appropriate email campaign that best suits their needs, this also serves as a reminder to the loan officer that this is an “active” new prospect in their pipeline or a recently closed client. The e-mail campaign will serve as a back-up to ensure that the client is getting information from them and the loan officer can call at their convenience to follow through with more details specific to that client. Our key to e-mail marketing success is our ability to ensure that the right message is being delivered to the right contact at the right time. The system is

not have an e-mail or if the loan officer wants to be connecting with them from all ends to the spectrum; e-mail campaign, mailed letter and phone call. Past customers appreciate that the loan officer is staying in contact with them and provides them with personalized relevant information. All they had to do was add them to their database and make sure to follow up with them at the appropriate times. Even if a client cannot be helped, the loan officer will still reach out to them. For example, a client’s loan anniversary is coming up and the terms of their mortgage compare favorably against the marketplace, we will notify them that they are good

one-on-one marketing continued from page 55

true … to an actual rate comparison showing a current rate/payment and the assumption rate toward the end of the year being much higher and what that rate/payment would be. Stating simply that now is the time to purchase the home of your dreams and waiting could cost you a lot of money compared to the current market. The loan officer meets with the marketing manager and provides her with an idea and they will collaborate on what the final piece should look like or what the overall message should be. Once we have created a marketing piece we push it out to all of the loan officers so they can mimic someone else’s idea without having to reinvent

edge as well. We are always trying to keep ahead of the curve on what is going on in the mortgage world and getting that information out to our counterparts first! Overall, we have found by the loan officers utilizing a marketing manager and having that additional one-on-one support keeps the loan officer on target for reaching their weekly goals which contributes tremendously to their overall success. The fact that everything is so streamlined on the loan officer’s part allows them to focus on new business, which is a win-win for everyone. Tory Tarsitano, CRMS is executive vice president of Schaumburg, Ill.-based Pacor Mortgage Corp–Capital Financial Group. He may be reached by phone at (847) 944-1470 or e-mail tory@pacormortgage.com.

FEBRUARY 2015 n National Mortgage Professional Magazine n

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seeing who opens their e-mails, the loan officer can then prioritize who they should be calling on first. The prospect that is opening their e-mails should most likely be called first because they now know they are more engaged in the process. This is just a great tool even just to see at a glance who is opening your emails. What stands out to us when opening these reports is what is “working” and what is not in regards to e-mail campaigns or e-mail blasts. Who is engaged and who is not. We also utilize dual marketing with our real estate agent partners, via post cards, flyers and direct door mailers. They can be very general, i.e. rates are low, home prices are too good to be

the wheel. It also helps to get the juices flowing on someone else’s take on the same topic or something similar. Another resource, direct door mailings, is fairly inexpensive and you can target certain cities, neighborhoods or a specific distance from your business. After speaking to many realty companies on what they are looking for from their lending counterparts; what they find useful and what is just taking up space in their inbox. We’ve found that they want current mortgage news and rates. Therefore, we have put together a piece that entails that criterion and send it out on a weekly basis to each loan officers’ specific real estate agents. They want to have an idea about where the rates are at when they are speaking to their clients and if there is something new in the mortgage/lending world they want to have that knowl-

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“Traditional marketing techniques have lost their effectiveness due to the enormous advertisement clutter that clients and prospects receive every day.”

Why You Need Mobile in Your Marketing Strategy By Ben Brashen

What does this mean for loan officers?

Why do loan originators need a mobile app? Mobile is the NOW of marketing. If

Gain a competitive advantage with a mobile app The mortgage industry is a hypercompetitive environment. Generating leads, keeping prospects working with you from pre-approval through closing, and getting referrals are the most crucial tasks for a loan officer. Having your own personalized app creates the following opportunities:

Some quick mobile marketing tips to make sure you make the most of mobile app strategy

l Cut out the competition: When your app has the right tools such as a mortgage calculator, rate information, and news along with instant access to you, you’ll cut out a prospect’s need for competition. l Referral generation: With a click of a button right from their mobile phones, clients can now share their loan officer’s information

A. Plan your approach Like any other business strategy, using mobile apps is best planned. Think through: l What you want to achieve? l Who you are targeting? Prospects? Referral partners? Both? l What you want your audience to do with the app? l What tasks will be executed to reach

Mobile app marketing best practices

B. Integrate apps with your other marketing Mobile apps work best when they’re used with other marketing and business tools, including social media. An app is unlikely to be a marketing strategy in its own right—it’s more likely to be a component of a campaign or strategy. Remember that your app will require a marketing campaign to reach your referral partners, leads, and clients. C. Track your mobile app results It’s worthwhile to monitor the impact of your mobile apps on your business, so you know what works and what doesn’t. You can evaluate success by seeing how many people download your app, but it’s much more meaningful to track outcomes like impact on sales. Attaching a coupon or promotion code to an app may help you track sales generated from it. You may be able to measure visits to your website that are generated by an app, using a website analytics tool. Loan officers thrive on strategic relationships, be it with their clients, or real estate agents. In the mobile world, it is more important than ever, to be connected via the medium and provide tools that are used most by their audience. Mobile is here to stay, and if you don’t have a mobile marketing strategy, it is time to get going. Ben Brashen is chief executive officer and president of Mortgage Mapp. He founded Mortgage Mapp with the mission of making mobile marketing a successful tool for loan officers. Mortgage Mapp creates personalized apps for users, creating an opportunity to engage clients 24/7 on their smartphone. Ben can be reached by e-mail at ben@cardtapp.com.

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Smartphones and tablets are everywhere. They’ve evolved into the remote control for the world around us. Clients and prospects are loaded with information and connected like never before. The future belongs to those who are leaders in the connected client revolution. For loan officers, mobile technology represents a paradigm shift for the mortgage industry. Traditional marketing techniques have lost their effectiveness due to the enormous advertisement clutter that clients and prospects receive every day. E-mail, newsletters, and business cards are losing their effectiveness. The three-fold brochure is a thing of the past. Now, loan officers have the opportunity to market on the one device that people spend their time on!

you’re not implementing some kind of mobile marketing strategy, you’re already behind! Clients use smartphones to stay in contact with their friends and family. Walk around any major city and you will find more than just a few people with faces glued to their smartphone screens. According to ComScore, 55 percent of users’ Internet time is spent on mobile devices, which means simply ignoring the rise of mobile just isn’t an option. Loan officers need a mobile app because their clients are not using their desktop or laptop to begin their home loan searches. Missed opportunities arise when a loan officer is not present on the device that potential clients use the most to find suitable mortgage lender. You can also be sure that if clients and prospects are not using YOUR mobile app, they are using someone else’s.

your goal? l How you will know it is working? l Developing a simple action plan is a good way to be clear about why and how you would use mobile apps.

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The world has gone mobile and the power of mobile marketing is a gamechanger. Rapid advancements in cellular hardware and software along with the widespread proliferation of cheaper data connections has led to a change in our behavior. American’s research and decision making has evolved to rely heavily on the smartphone devices we carry with us 24/7. With more than 35 billion mobile app downloads, companies have new opportunities to communicate and engage with their target audience. Communication through mobile devices has proven to be more effective and profitable driving additional investment in to the mobile marketing space.

with their friends and family. l Easy connect: When loan officers get any lead, or preapprove a borrower, they can instantly share their app as a first touch point so the borrower immediately feels that they can easily access the loan officer. l Competitive advantage: When borrowers are looking for houses, they are bound to meet other loan officers. While loan officers can share their business cards and even email a potential borrower (probably from their phone!), the app ensures that they are present at the ‘last point of defense’ right on the device where they are searching for homes, looking up rates and calculating mortgage payments. Being on the borrower’s phone, increases the possibility of staying connected which will lead to less competition and more business. l Seamless loan process: From get pre-approved to closing the loan, a mobile app connects clients with a loan officer and their team at every step. During the transaction, it is important for clients to feels that their loan officer is available should questions arise. Clients do not have to browse through earlier e-mails or look for a business card to get their loan officer’s phone number. It is all available to them on their mobile phone.

“The key to success in marketing is making sure that you are being found wherever your client is searching. At the same time, it’s easy to get distracted by any one of these methods and forget about the others.”

The Number One Way to Generate New Business By Brian Sacks

When I travel around the country speaking and consulting I am always asked what is the top way to generate new business? When I respond, many of the loan officers and company owners seem a bit confused. Of course, there must be some “fairy dust” or magic potion that they think

I simply refuse to share. The reality is that there is no such thing as a “best” way to get clients. While there is no one way to get 100 new clients there are 10 ways to get one client and I will share some of them here. You should be trying at least four or five of them each month.

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But before I go into that, I want to make sure that you avoid one of the biggest mistakes that has the potential to destroy your career and earnings. Ready? You must never rely on any one single source for your business. I have seen many originators rely on one or two agents or one office for the majority of their production. Over the years, I have also seen loan officers rely on just one marketing method for generating new business which is equally dangerous. Think back to the days of faxing. Think back to the phone rooms before the Do-Not-Call (DNC) lists. Think back to the days of pay per click on line. Think back to the beginning of Facebook ads. Yes, I know that’s a lot of thinking, but it’s critical that you never ever be a one trick pony with your marketing or your sources of new business.

So what should you do? I will share some tactics that are working for me right now, but before I do let’s just jump into two more issues that are important here. In addition to being asked what the best way to generate business is, I am also asked if online marketing is better than offline marketing. The truth is that you should be using both online and offline marketing. I am, by nature, a contrarian. While everyone is now using social media and online marketing, my system involves both. Have you looked into your mailbox recently? It’s not as full as it once was is it? There are way fewer direct mail pieces right? Well that’s good news if you are now using direct mail since it’s easier for your piece to get noticed. Here’s how the system works:

of three pieces of mail. In my case, I send them a postcard and follow up with a letter, then another letter. Most originators send one piece of mail and then declare mail doesn’t work. But it’s the sequential mailing that makes this successful. If you were going to send 3,000 pieces of mail it would be better to target 1,000 people and send them three spaced out pieces of mail than to send one mailing to 3,000. 3. The mailing sends them to an online website that captures their email and offers them a “Free Report.” 4. The Free Report is the entire conversation you would be having with them on the phone and also includes testimonials and answers to their questions. The report offers them a free, no obligation consultation. 5. If they grab the report but don’t call for a consultation, we are able to “drip” on them with e-mails that have been pre-programmed to go out until they do call. This system is almost like having a sales robot working for you 24/7. As you can see, this system is powerful and once it’s set up can work on auto-pilot generating new deals on a consistent basis for you. But as I mentioned earlier in this article you should NEVER rely on any one method so here are a few additional ways to generate new business. Let’s start with referrals from other professionals:

1. Target the buyers you want to do business with. This can be renters or folks who have had a credit challenge (my favorite) like a bankruptcy or foreclosure.

l Realtors: Get active in your local board of Realtors. Teach classes there and show them your expertise. You can also get active in local builder associations. You should also connect with attorneys, CPAs and financial planners. That goes without saying right?

2. Send them a direct mail sequence

l Hospitals: Every city has a num-

ber of hospitals. These hospitals always have new residents and specialists coming into town. Get to know the human resource people in these facilities and they can send you business. l Credit unions and small banks: Many small credit unions don’t offer mortgages or may have very strict guidelines. Some may offer loans, but don’t handle government loans or jumbo loans. As I write this article, I just finished speaking to a borrower who was referred to me by their credit union since they don’t handle government loans. You may have the opportunity to also refer car loans, equity lines or other types of loans back to them.

Other ways to create new business Before we jump into some of the tactics here, I want to tell you that I prefer to control my income and my destiny and I hope you do too. The best scenario is when you can generate a lead directly from the consumer, get them pre-approved, and then use that as leverage with your referral partners. First I must also tell you that I barely graduated high school and do not have a college degree. I tell you this because of the little voice that will go off in your head once you continue reading this that will tell you that you can’t do this.

l Webinars and seminars: Want to meet new real estate agents, attorneys and accountants? Of course you do! Each of them have a trade association that would welcome having you come in and teach on a particular subject. Instead of meeting these partners one at a time and building a relationship, you could now have a room full of them who already see you as the expert, since you are educating them. All of these professionals need continuing credit hours so it’s best to check with the trade association and get your courses approved. Oh, and each of them also has a publication just like this one. Why not write for them as well? A marketing conversation would not be complete without discussing social media. You must have a presence on You Tube, Facebook and LinkedIn. They are important pieces of a comprehensive marketing plan. The key to success in marketing is making sure that you are being found wherever your client is searching. At the same time, it’s easy to get distracted by any one of these methods and forget about the others. Don’t let that happen to you. My suggestion is to pick four or five tactics to work on. Make sure they are working and generating business for you before you move on to more. If you choose to do everything you will

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l Other loan officers: Be honest, I bet you didn’t think of that one did you? I have breakfast every quarter with my “competitors.” They each do a different type of loan like Reverse mortgages, construction loans, 203k loans and other specialty programs. I refer them for the loans I can’t do and they refer me.

l Radio show: Every town has talk radio and sports radio stations that will allow you to have your own show. I don’t have room to go into all of the details in this article unfortunately, but I have personally helped more than two dozen originators with their own successful radio shows. If you don’t want to have your own show, you could always go on as a guest on existing shows that are running in your town.

often wind up overwhelmed and and company owners over the past 29 years on how to close more loans, make more doing nothing. money and still have a life. You can downBrian Sacks is a nationally-renowned mort- load his report, “The Four Tools You Can Use gage expert who has career closing of more to Immediately Grow Your Business,” a than 5,924 transactions for in excess of $1 www.AgentsChaseYou.com. Brian may be billion. He has trained, consulted and reached by phone at (443) 324-8424 or ecoached, tens of thousands of loan officers mail loanofficertips@gmail.com.

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l Churches and religious groups: Many churches have financial ministries who would welcome you and allow you to educate their members. Probably would be a few real estate agents who are members you could also build a relationship with.

l Free publicity: Become a resource for your local TV, radio and print publications. There is always something important changing in our industry and the market itself is always in flux. Contact the media and offer to be their resource and expert.

“Lenders that respond the quickest to borrower inquiries—no matter if they are made online, or by e-mail, or by phone—will always have an advantage, whether that borrower decides to look at other lenders or not.”

Conquering the Borrowers Who Just Won’t Shop By Kelly Booth

When it comes to getting a mortgage, you would think that most borrowers would take their time and compare different lenders and products before signing on the bottom line. After all, a mortgage is the largest financial transaction most of us make in our lifetimes. But apparently that’s not the case—many borrowers

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don’t shop at all, and lenders that don’t realize this and act accordingly are paying the price. According to a recent voluntary survey jointly conducted by the Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA), nearly half of all people who got a

mortgage do not shop around between lenders and products, and three out of four consumers applied for a mortgage with only one lender or broker. Consumers put far more effort into the house they buy than the mortgage they get to finance it. Of course, the big question is why. Perhaps some borrowers think all lenders are the same and offer the exact same products, even though this is not so. Or perhaps other borrowers believe they are too busy to look at more than one lender—even though the time it takes to shop around is miniscule compared to the $300,000 or more they will pay over the next 30 years. Whatever the case may be, it certainly doesn’t make the job of a bank, lender or loan officer any easier. I have a few tips to help increase the odds of converting mortgage shoppers who aren’t inclined to shop around: 1. Getting there first It’s a key factor of sales that deserves repeating: Being first matters! Lenders that respond the quickest to borrower inquiries—no matter if they are made online, or by e-mail, or by phone—will always have an advantage, whether that borrower decides to look at other lenders or not. Yet you’d be surprised how little effort some lenders make to respond to motivated borrowers. Our own surveys found that most lenders fail to reply to mortgage leads within 24 hours after someone has expressed an interest in getting a loan. Some lenders don’t respond at all. Even 24 hours is longer than most borrowers will wait these days. Today’s consumers are always online and crave instant gratification—in fact, they demand it. According to a recent Fannie Mae study, more than half of all mortgage borrowers find their lenders online. If you cannot quickly respond to a borrower that submits an online application or request for more information, there are plenty of lenders that will. For this reason, more lenders and mortgage professionals are turning to sales automation tools, which enable them to respond to borrowers quickly, while a borrower’s interest level in buying

a home or getting a mortgage is high. These tools have gotten incredibly powerful in recent years. It’s not uncommon for our mortgage clients, for example, to be on the phone with a potential borrower within seconds after the borrower submits an online request for information. As important as it may be, being first is not a guarantee of a sale. It may turn out that a borrower decides to use his or her bank after all, or the loan officer who was referred by a friend. But lenders and loan officers that can give borrowers fast answers are likely to win their trust. If borrowers aren’t inclined to shop around, being first will at least increase your chances of being “The One.” 2. Make them smarter From a borrower’s point of view, taking out a mortgage is a very complicated and emotional process. Many borrowers may choose to go with the first lender they contact because they just want to “get it over with.” Others might be thinking about getting a loan—that is, until their “Dream House” hits the market. Then all of a sudden, these borrowers need money now. Once borrowers begin the process with one lender, there’s a tendency is to not “mess around” with another lender, even if they could save money. Of course, neither approach is very smart. Ignorance is definitely not bliss when it comes to getting a home loan. This is why smart lenders and mortgage professionals are constantly educating potential borrowers and their past clients about everything from rates to recent market events, such as Fannie Mae’s lower downpayment guidelines, or changes to the FHA’s mortgage insurance premiums. If you need further evidence that this strategy works, the CFPB report also found that consumers are more likely to shop for loans if they are familiar with current mortgage rates. So stay in touch with borrowers about rates. Let them know what’s going on in the market, and that rates and fees can vary greatly between lenders. Also keep in mind that borrowers don’t know what they don’t know. Many are unaware, for example, what “points” are. They don’t know closing times can be drastically different from lender to lender, or that their financial behaviors can impact

how much money they are able to borrow. Even if a borrower is just in the planning stages, you can still act as an advisor. The key is to provide objective, accurate information, without harassing prospects into a hard sell. By the time they are ready to apply, you’ve already earned their trust, so the choice becomes easy. Educating borrowers also paves the way for a smoother transaction, too. 3. Follow up and don’t stop Yes, speed is vital. So is educating potential borrowers, so they make sound decisions. But the most critical piece of any marketing plan is follow through— because without it, you may never see the closing table. According to third-party studies and our own research, as many as a third of all potential borrowers do not close because the lender never follow ups with them.

The data also shows that responding to a borrower’s request once or twice isn’t enough. According to our own research, the odds of converting a borrower continue to rise after up to six contact attempts. There is simply no substitute for diligent follow through. Not only does it ensure that you stay top of mind with your prospects, but it also shows you are dedicated and can remember where your customer is at in the loan process. Human beings usually need help to follow through consistently, which is why many of the fastest-growing lenders and mortgage professionals are turning to technology as insurance against the follow-up failure. There is no shortage of technology that can help lenders organize contacts and leads. The very best tools are those that can help professionals prioritize leads, automatically distribute them to their sales staffs, and put loan officers in direct

contact with potential borrowers immediately—and then keep following up until a potential borrower makes a decision. Sales automation technology is so advanced these days that it can get results even if a lender has trouble reaching a potential borrower. As a part of the followup process with someone who is ready to apply for a loan but that has been more difficult to contact, indicating they may be working with a competitor, a lender can actually leave a prerecorded voicemail or automated e-mail. The message can let the borrower know that there are advantages of having lenders compete for their business. That’s pretty savvy. It’s also important to remember that getting borrowers to fill out loan applications the first time they are contacted is rare. It may not happen after the second or third contact, either. But when a borrower is ready to move forward, a regi-

mented and consistent contact strategy, with an effective mix of e-mail, phone and even text messages, will put you in the driver’s seat when that moment happens. The bottom line is that even though many borrowers don’t shop around, it doesn’t mean they should be ignored—or that they won’t change their minds, either. Lenders and mortgage professionals that focus on speed, advising, and consistent follow through will see most of their other issues fall into place. Because once you’ve caught a few non-shopping borrowers, and converted a few more sales, you’ll quickly be onto the next investment. Kelly Booth is the mortgage vertical director for Velocify, a market leader in cloud-based intelligent sales automation solutions. Kelly may be reached by e-mail at kbooth@velocify.com. 61

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• Acquisition, Renovation, Bridge and Mezzanine Financing • Typical Loan Term 12-24 Months • Interest Only Payments • Closings Generally Within 30 Days of Commitment Issuance • Brokers Protected

Gary Robinson Vice President, Commercial Loans

Taylor Wold Commercial Loan Officer Sarah Montz Commercial Loan Operations

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Commercial Real Estate Financing up to $10,000,000

“I will bet if you looked around the room you are sitting in right now, you will find a company logo somewhere within eyeshot.”

Short Attention Span Goldfish By Eric Weinstein

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My kids have the attention span of a goldfish! That, however, is nothing compared to my customers. I just had a client call me for the rate on a 7/1 ARM. After we spoke and I quoted the rate, he thanked me, but he wanted to shop around. I figured he would call back since, basically, we are all selling the same bananas here and anyone he called would have a similar rate. Besides, I am such a lovable personality, how could

he go to someone else? Then a day goes by. And another. Nothing. So I called him. I said I just wanted to follow up; did he want to complete an application? “ “No, I went with somebody else,” he finally acknowledged. “Why?” I stammered. “I called three people; you all had the same rate, so I just went with the last guy.” By the third call, he totally forgot who I was.

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© Copyright 2007-2014 Carrington Mortgage Services, LLC headquartered at 1610 E. Saint Andrew Place, Suite B150, Santa Ana, CA 92705. Toll Free (800)561-4567. NMLS ID 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745; 2159 McCulloch Blvd 4, Lake Havasu City, AZ 86403. CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File No. 413 0904. CO: Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law. MO: Residential Mortgage Broker License 09-1746-S. NH: Licensed by the New Hampshire Banking Department. NJ: Licensed by the N.J. Department of Banking and Insurance. NY: Licensed Mortgage Banker—NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. OH: Ohio Mortgage Broker Act Mortgage Banker Exemption MBMB.850208.000 (FHA DE & VA Automatic loans only) OR: Mortgage Lender License ML-4886. PA: Licensed by the Department of Banking. RI: Rhode Island Licensed Lender, Lender License 20112809LL. VA: Licensed by the Virginia State Corporation Commission MC-5382. WA: Consumer Loan License CL-2600. Also licensed in AL, AR, CT, DE, DC, FL, ID, IN, ME, MD, MI, NM, NC, OK, SC, TN, TX, WV and WI. All rights reserved.

An attention span of a goldfish! I send out e-mails to my customers. After doing a loan with someone, they always end up loving me. I am just that sort of guy. Recently, I called one of my customers who had a high rate and recommended he refinance. “I just did,” he said. “But why didn’t you call me?” I said heartbroken. “Oh, I forgot. I got a mailer and it reminded me, so I just went with them.” So, the key to marketing is not to just get the message out, I learned. You have to get it out at the EXACT moment they are making their decision. But, how am I supposed to do that? That is why the check-out lane at a grocery store has its overpriced candy right there as you are about to pay for everything. People are a slave to impulses. The trouble is that you cannot constantly hammer your customers with emails reminding them of who you are. After a while, they just get irritated and put you in the SPAM folder. It is dark and cramped in there. Believe me … you don’t want to end up in there. So what is the answer? Huh? I am sorry, I just got distracted. What were we talking about again? Oh yeah … short attention spans. Back when I was a kid, there was no such thing as ADHD and Attention Deficient Disorder (or ADD since they are too busy to say the entire disease). Nowadays, the kids get a pill and a special teacher to cope with their needs. All I know is when I didn’t pay attention, my father gave me a cuff at the back of the head and I turned out okay. I don’t have ADD anymore, but I still get double vision sometimes. I would like to blame the kids of today, or as they are called, the “Millennials.” Them, with their SnapChats and the Twitter, it is no wonder they can’t pay attention. But really, you have to blame the current technological environment. Every day all of us are consistently bombarded with advertising. Ads are on our phones, Web sites, mail boxes, social networks, search engines, everywhere! In fact, I will bet if you looked around the room you are sitting in right now, you will find a company logo somewhere within eyeshot.

Kids today grew up with conflicting advertising messages constantly screaming for their attention. It’s not that they can’t pay attention, it is that they are used to splitting their concentration in a hundred different directions at one time. I think the key to good marketing is not just getting their attention but, keeping their attention. You must market to your customers enough where you stay in their face, but not to the point where you start to annoy them. One thing I have figured out is to use humor. If they genuinely enjoy your advertisement, in fact, look forward to it, and then they don’t seem to get bothered as fast. AND, they remember you. Remember, it is not enough to just get in their face. Anything, given enough times, people will just tune out. If you married, you know what I mean. You constantly have to re-invent yourself and the message. For example, if I see the GEICO duck one more time, I am throwing my shoe at the TV. Say you have two hot dog vendors on the same block. Both are selling the same hot dogs at the same price and both are equidistant from you. Which do you go to? You go to the one wearing the silly hat, of course. People are attracted to a spectacle, or humor or something just plain unusual. That’s why traffic slows down on the other side of the road at the scene of an accident. You just can’t help but look. You must be like that bubbling diver in a fish tank. Reintroduce yourself to that goldfish every time he swims around. Tell him a joke. Wear a silly hat. Maybe one day he will remember you and apply for a mortgage. Hell, his property is probably underwater … never mind. 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. These days, Eric is semiretired, doing mortgages by referral only. As he likes to put it, “He is either saving people money per month or helping them buy a new home. What a great job!” He may be reached by phone at (703) 505-8692 or email eweinstein4u@gmail.com.

“…successful marketers of the future will begin to align all marketing efforts with a prospect narrative.”

What Twitter Founder Jack Dorsey Teaches Us About Marketing By Marc Wayshak

Most organizations create their marketing materials without considering what a prospect will be doing when they receive a marketing message. Prospects

What is keeping them up at night? Usually, a company centers the majority of its marketing efforts around the company itself or the features and benefits of a specific product. However, prospects don’t care about us, our company or our offerings. All they care about are the issues they are dealing with right then and there. What are the challenges that your ideal prospect takes home with him each night? If you want your marketing to elicit a particular behavior, then think about what will most effectively catch the attention of the intended prospect. Most commercials, for example, are generic and unmemorable, so in order for yours to stand out, you need to develop a message that is so appealing or jarring to your prospect that he has no choice but to react to it.

What action will he most likely take? So many marketing campaigns are solely focused on increasing awareness of an organization, rather than encouraging a prospect to take some action. This is tantamount to burning cash in a barrel. Think about what action your prospect would most realistically take after absorbing your message. Would they most likely go to a Web site, send a text, pick up the phone, send something through the mail or find you on Twitter? Once you know which medium a prospect is most likely to use, then you can develop a call-to-action that aligns with it.

By formulating answers to these five questions, you begin to create a

Marc Wayshak is the author of two books on sales and leadership, Game Plan Selling and Breaking All Barriers, as well as a regular contributor for Entrepreneur Magazine and the Huffington Post Business section. He may be reached by phone at (617) 203-2171, e-mail info@marcwayshak.com or visit www. marcwayshak.com. 63

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What is your prospect doing during his or her day?

are busier than they have ever been in history. In fact, they are spending over a quarter of their day just responding to e-mails. In order for your campaign to break through the clutter, you must consider how your ideal prospect is spending his time.

Rarely do companies develop marketing campaigns that create long-term engagement. However, those that do receive dividends over and over again, all from that initial investment. Therefore, the question great marketers want to answer is, given the prospect’s narrative, what are realistic ways to engage him in the long run? This will be the difference between developing a one-time customer and a long-term fan.

story of what your prospect is doing and what he is thinking about. After the prospect narrative is created, your marketing team should channel Dorsey by fitting campaigns precisely into that narrative.

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As a teenager, Jack Dorsey developed dispatch routing software for taxi cabs. During this time, he was intrigued by the way taxis could briefly update others on their whereabouts. Soon, he began to contemplate developing an online program that would allow everyday people to send short messages to others in their online community. Just a few years later, he and co-founders Biz Stone and Noah Glass started Twitter. Twitter has become an integral part of our lives, and the mindset that led to its creation is just as critical to those looking to market their organizations. Dorsey speaks passionately these days about creating a “user narrative” when developing a product that tells a story of the user’s day-to-day life. This allows his companies, like Twitter and Square Reader, to create products that are built with the sole intention of filling a particular need. This same mindset can also be applied to marketing. All too often, businesses market themselves without the prospect in mind. But successful marketers of the future will begin to align all marketing efforts with a prospect narrative. Creating a prospect narrative is an easy and powerful way to put yourself into your prospect’s shoes—and ultimately increase the effectiveness of your marketing. Here are five questions to consider when developing a prospect narrative for your company’s next marketing campaign:

How will you keep them engaged?

heard on the street continued from page 44

PIUNTI FALEN

PETTOLA VELLA NAJERA

l John Vella has been named chief revenue officer for Altisource Portfolio Solutions SA.

l The National Association of Hispanic Real Estate Professionals (NAHREP) has announced that celebrated writer, director, actor and author Rick Najera has been named to the newly created position of director of new media and entertainment for the association.

PASCO

l Darien Evans has been named executive vice president of operations for iMortgage.

l Primary Residential Mortgage Inc. (PRMI) has announced that five new members have joined the Baltimore team: Jeff Gunther as branch manager, George Kuda as senior mortgage specialist, Chad Piunti as loan officer, Krena Falen as executive loan coordinator, and Andrea Pasco as a loan processor.

BOMAR

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l Andrew Pettola has been named regional vice president of the Northeast Region for Envoy Mortgage.

l Linda Bomar has been named vice

TYRRELL

www.TheNationalRealEstatePost.com

KUDA

GUNTHER

l Elliot Bauer has joined the AnnieMac Home Mortgage team as branch manager in Connecticut.

president of sales for Indecomm Global Services.

EVANS

Mortgage Action Alliance (MAA) for the 2015-2016 political cycle by Bill Cosgrove, MBA chairman and CEO of Union Home Mortgage.

BAUER

Wrestling the dail Wrestling daily y mor tgage news so mortgage y you ou don don’t ’t have have to!

l Ellie Mae has announced that Joe Tyrrell, the company’s senior vice president of corporate strategy, has been appointed to a two-year term on the board of directors of the Mortgage Industry Standards Maintenance Organization (MISMO). l 1st Alliance Lending LLC has named Rick Cardillo as its national director of business development. continued on page 67

NAPMW REPORT F E B R U A R Y

2 0 1 5

A Visionary Sees Light in the Darkness By Nikki Bell & Cynthia Nutter

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Conference Producers

Association Managers

Contact Vincent M. Valvo, CEO 860.922.3441 or info@AgilityResourcesGroup.com

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Nikki Bell is the vice president of business development for BrandMortgage. She serves as president for NAPMW Atlanta and is a member of the board for the Mortgage Bankers Association of Georgia (MBAG). She may be reached by phone at (678) 442-3966 or e-mail nbell@brandmortgage.com. Cynthia Nutter sits on the NAPMW National Board as secretary, and is an escrow officer with Fidelity National Title. She may be reached by phone at (360) 258-2206 or e-mail natsecretary@napmw.org.

From affordable association management services to creating vibrant and profitable conferences, Agility Resources Group can help your mortgage association achieve a stronger bottom line.

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Have you ever been told: You can’t, you won’t, you’ll never … ? Would that make you want to say: I can, I will, just watch me … ? In 1964, nine women not only said it, they did it. Fifty-one years ago, nine visionary ladies with an entrepreneurial spirit chartered the Seattle Association of Professional Mortgage Nikki Bell Women. I wonder then if they envisioned this far into the future. If they knew the positive influence their dream would have on so many others through the years. What began as a small association in Seattle, Wash. has grown into the National Association of Professional Mortgage Women (NAPMW). Our members have cherished memories of the events, conferences and the people they have come in contact with over the years. We have learned Cynthia Nutter from the education, created networking channels throughout the country, prospered from the job opportunities, and realized we also have an entrepreneurial spirit along the way. After half a century, it is prudent to look back so we can move forward. The year 1964 was a turbulent time in our country. The “Original Nine,” as we affectionately call them, saw the light in their darkness. They were visionaries. This foundation, this dream, is what we must hold true to. To light the path of those around us and to those who will come after us. As an association and as individual members, we must ask ourselves: What legacy do we want to leave in the real estate industry? Just as in the beginning, each one of us plays a part by being engaged, enthusiastic and creating synergy in all that we do. We are an association with members that are passionate about providing mortgage education and networking opportunities on a local level with the additional benefit of offering NAPMW’s National Education Conference each May to expand on those business connections, as well as personal and professional growth. We invite you to become one of our members on this journey. We invite you to join NAPMW and become part of something big; something with a solid history and a passion for growth and vitality. NAPMW will help you foster new relationships and new business opportunities, while you gain knowledge for your own personal and professional growth. So the question I ask you is: Do you want to be a visionary?

Helping Mortgage Associations Grow

Step Inside Ginnie Mae Lowering of Mortgage Insurance Premium Good for Middle Class Families, Housing Industry By Ted W. Tozer

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President Obama’s recent announcement that the Federal Housing Administration (FHA) would lower its mortgage insurance premium (MIP) by a half a percentage point for new and refinanced loans, from 1.35 to 0.85 percent, highlighted one of Ginnie Mae’s most important priorities—maximizing the availability of low cost funds for home loan credit to low- and middleclass Americans. This is critical to the continuing housing recovery since lowering the MIP could bring in more than 250,000 new homebuyers into the market and homeownership currently is at a near 20-year low. Despite the lower homeownership rate, the overall economy is showing significant improvement. The President, who was joined by U.S. Department of Housing & Urban Development (HUD) Secretary Julian Castro during the announcement, said “Home sales are up nearly 50 percent from where they were in the worst of the [housing] crisis. Homebuilding has more than doubled. That’s created hundreds of thousands of construction jobs. New foreclosures are at their lowest level since 2006. Since 2012, nearly 10 million fewer Americans have their homes underwater. Rising home prices have put hundreds of billions of dollars of wealth back in the pockets of middle-class families.” The President’s FHA move is aimed at the key problem, first-time homebuyers, said Secretary Castro. Typically, such buyers account for 40 percent to 45 percent of home purchases. In the years before the crash, they made up half of all homebuyers. Now it is estimated that first time homebuyers are less than a third. Still, many have voiced concerns about lowering the MIP by half a percent, citing increased risk and looser lending practices, but, as the President’s announcement made clear, this decision was both prudent and fiscally responsible: “We want to make clear the days of making bad bets on the backs of taxpayer money and then getting bailed out afterward, we’re not going back to that,” he said. As Secretary Castro pointed out, HUD has already taken steps to reduce risk in the mortgage market, including tightening underwriting standards and bolstering its capital reserves, making this the right time to reduce the MIP a half percentage point. The result? The reduced MIP will save current FHA borrowers an average of $900 a year. For Ginnie Mae’s part, we fully expect to continue playing an indispensable role of making sure lenders have an abundant supply of low cost funding in the effort to bolster the housing market, and contribute to the strengthening of the nation’s economy. I expect the lower MIP along with Ginnie Mae’s ability to attract low-cost funding from around the world will continue the upward trajectory of the American housing market. 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.

heard on the street continued from page 64

INSKEEP

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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.

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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.

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calendar of events N A T I O N A L

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l DocuTech Corp. has named Tony Inskeep to the position of senior VP of sales and has named Don Scales as manager of the Western Region l Data Facts Inc. has named Alison Mitchell as lending sales account executive in South Texas, covering the Houston, San Antonio and Austin regions. Mitchellâ&#x20AC;&#x2122;s hire coincides with the acquisition of One Source Credit Reporting Agency in Houston, Texas. l The Consumer Financial Protection Bureau (CFPB) has announced the following new additions to its leadership team: Anthony Alexis as assistant director of enforcement, Leandra English as deputy chief operating officer, Agnes Bundy Scanlan as Northeast regional director of supervision examinations, and Jeffrey Sumberg as chief human capital officer. l Valuation Partners has named Mark Lyons to the new role of senior vice president, corporate sales development; Clint Reinhardt as senior vice president, national sales and marketing manager; and Robert Gans as vice president, national account executive. l Jim Owen has been named vice president, divisional building manager of

the National Builder Division for Caliber Home Loans. Ocwen Financial Corporation has announced that it has named two new independent directors to its Board of Directors: Phyllis R. Caldwell, vice chair of Community Preservation and Development Corporation and DeForest Blake Soaries Jr., senior pastor, First Baptist Church of Lincoln Gardens, N.J. Open Mortgage LLC has announced the hiring of Cher Kilgore as business development manager. Carrington Mortgage Holdings has named Rudy Orman as managing director of business development. RealtyTrac has announced that 30-plus year data industry veteran and product management innovation executive Jon Cohn has joined the company as senior vice president of data products. LenderLive Network Inc. has announced the addition of Andrew Lion and Wendy Lovett as regional account executives for LenderLiveâ&#x20AC;&#x2122;s Correspondent Lending Division.

outstanding places to work

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877-255-3554, xt. 600 www.equityprime.com

732-738-7100 www.remnwholesale.com

Equity Prime Mortgage is focused on creating an outstanding work environment. We consider each and every employee as a true partner to our success. This approach, combined with Equity’s industryleading technology and turn times ensures we deliver exceptional service levels to our branches, referral partners and customers alike.

Although REMN Wholesale has over 1,000 employees, 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.

Voted the #1 place to work in Metro Detroit, UWM is looking for Aplayers to join our talented team. Our business is driven by our culture, and our people are our greatest asset. If you’re looking for the opportunity of a lifetime, apply to UWM today!

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NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

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We are pleased to announce a new package that will give your firm the recruiting tools to instantly shift your recruiting efforts into high gear using a multimedia, market-saturating approach. We will utilize the most successful methods that our clients have been using to find, identify and place top talents for your company. We have designed these packages with the concept of making it less expensive to give you the ability to reach more people.

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calendar of events N A T I O N A L

M O R T G A G E

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

MARCH 2015

Thursday, April 9

Thursday-Sunday, May 14-17

AUGUST 2015

Thursday, March 5

2015 Maryland Association of Mortgage Professionals Annual Conference Turf Valley Resort 2700 Turf Valley Road Ellicott City, Md. For more information, call (410) 752-6262, e-mail mamp@assnhqtrs.com or visit www.mdmtgpros.com.

National Association of Professional Mortgage Womenâ&#x20AC;&#x2122;s 51st Annual Education Conference & Business Meeting Hilton Dulles Airport 13869 Park Center Road Washington, D.C. For more information, call (800) 827-3034, e-mail napmw1@napmw.org or visit www.napmw.org.

Thursday-Friday, August 20-21

Louisiana Mortgage Lenders Association (LMLA) 2015 Education Conference The Hilton New Orleans Riverside Hotel 2 Poydras Street New Orleans, La. For more information, call (225) 590-5722 or visit www.lmla.com.

Florida Association of Mortgage Professionals Palm Beaches Chapter 2015 Annual Trade Show Embassy Suites 1601 Belvedere Road West Palm Beach, Fla. For more information, call (561) 320-3267 or e-mail fambpb@bellsouth.net.

Saturday-Tuesday, April 11-14 Sunday-Thursday, March 8-12 32nd Annual Regional Conference of MBAs Trump Taj Mahal Casino Resort 1000 Boardwalk Atlantic City, N.J. For more information, call (732) 596-1619 or visit www.mbanj.com.

NAMBâ&#x20AC;&#x201D;The Association of Mortgage Professionals 2015 Legislative & Regulatory Conference Hyatt Place Hotel 33 New York Avenue NE Washington, D.C. For more information, call (972) 758-1151 or visit www.namb.org.

Wednesday, April 29

American Land Title Association (ALTA) 2015 Business Strategies Conference Sheraton Philadelphia Downtown 201 North 17th Street Philadelphia For more information, call (202) 296-3671, visit www.alta.org or e-mail service@alta.org.

2015 Midwest Mortgage Matchmaker Conference Ameristar Casino Resort & Spa 1 Ameristar Boulevard Saint Charles, Mo. For more information, call (314) 690-1504, e-mail information@mamp.biz or visit www.mortgage-matchmaker.com.

APRIL 2015

Monday-Wednesday, May 18-20 American Land Title Association 2015 Federal Conference and Lobby Day Mandarin Oriental Hotel 1330 Maryland Avenue SW Washington, D.C. For more information, call (202) 296-3671, visit www.alta.org or e-mail service@alta.org.

American Land Title Association 2015 Annual Convention Westin Copley Place Boston 10 Huntington Avenue Boston, Mass. For more information, call (202) 296-3671, visit www.alta.org or e-mail service@alta.org.

JUNE 2015

Saturday-Monday, October 17-19

Friday, June 5

2015 NAMB National Conference Luxor Resort and Hotel 3900 South Las Vegas Boulevard Las Vegas For more information, call (860) 719-1991, e-mail info@agilityresourcesgroup.com or visit www.nambnational.com.

2015 Southwest Mortgage Fest Embassy Suites Hotel & Spa 1000 Woodward Place Northeast Albuquerque, N.M. For more information, call (860) 719-1991, e-mail info@agilityresourcesgroup.com or visit www.swmortgagefest.com.

MAY 2015

Texas Mortgage Roundup 2015 Hyatt Regency San Antonio 123 Losoya Street San Antonio, Texas For more information, call (860) 922-3441, e-mail info@agilityresourcesgroup.com or visit www.txmortgageroundup.com.

Tuesday, May 12

Monday-Wednesday, June 22-24

Sunday-Wednesday, October 18-21

2015 Great Northwest Mortgage Expo Crowne Plaza Downtown Portland 1441 NE 2nd Avenue Portland, Ore. For more information, call (503) 567-9326, e-mail info@oamponline.com or visit www.greatnorthwestexpo.com.

Ultimate Mortgage Expo 2015 The Hotel Monteleone 214 Royal Street New Orleans, La. For more information, call (860) 719-1991, e-mail info@agilityresourcesgroup.com or visit www.ultimatemortgageexpo.com.

Mortgage Bankers Association Annual Convention and Expo 2015 San Diego Convention Center 111 West Harbor Drive San Diego, Calif. For more information, call (800) 793-6222 or visit www.mortgagebankers.org.

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

n National Mortgage Professional Magazine n FEBRUARY 2015

Thursday, April 2

NationalMortgageProfessional.com

Wednesday-Friday, March 18-20

OCTOBER 2015

Wednesday-Friday, October 7-10

ABC WHOLESALE LENDER

BONDS & LICENSING

COMPLIANCE/CONTINUING EDUCATION

The Bond Exchange www.bondedwithnamb.org (501) 224-8895

AllRegs—Your Source for Fast, Reliable Answers 2600 Eagan Woods Drive, Suite 220 Eagan, MN 55121 (800) 848-4904 www.allregs.com

LOWEST-COST STATE MORTGAGE LICENSE BONDS Support NAMB in supporting you! Online surety bond applications, instant underwriting approval, and credit card payments administered through The Bond Exchange NAMB's exclusive partner provider for state license surety bonds. The Bond Exchange is a national surety agency specializing in servicing mortgage license bonds for thousands of mortgage professionals across the country. Low prices and fantastic service. You really can have them both at the same time!

AllRegs offers mortgage professionals fast, reliable answers needed to conduct their day-to-day business. From research and reference to business intelligence, from education and training to professional services, we are your definitive source for mortgage industry information. With tools for originators like NMLSapproved CE training, regulatory content libraries for compliance staff, guidelines for underwriters, policy manuals for operations, and business intelligence for business development – we have you covered as the leading information provider for the mortgage industry. If you have a specific need, our professional services team can help with thing like policy, procedure or guideline development, as well as custom training or publishing resources. Contact us to learn how we can help you – visit www.allregs.com today.

CONTINUING EDUCATION

APPRAISAL MANAGEMENT COMPANY COMPLIANCE CONSULTANTS

FEBRUARY 2015 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

StreetLinks Lender Solutions (800) 778-4920 www.streetlinks.com sales@streetlinks.com StreetLinks Lender Solutions provides an innovative and comprehensive suite of valuation and service solutions used by lenders, servicers and appraisers nationwide to improve everyday business operations. StreetLinks industry-leading products include LenderPlus™ full-service appraisal management, LenderX™ lender-executed appraisal management software and SCORe™ appraisal reviews and a series of valuation analysis tools for services. Our commitment to quality and service, embodied by our partnership approach to clients and appraisers, continues to set us apart as the nation’s premier lending solutions partner. For more information, visit www.streetlinks.com.

BROKERS COMPLIANCE GROUP 167 West Hudson Street – Suite 200 Long Beach | NY | 11561 members@brokerscompliancegroup.com www.BrokersComplianceGroup.com Division of Lenders Compliance Group, BCG is the first and only mortgage risk management firm in the U.S. devoted to supporting the unique compliance needs of residential mortgage brokers. Leveling the Playing Field for Mortgage Brokers Low Cost Monthly Membership Includes: • Free Weekly Hotline • Access to Subject Matter Experts • Policies and Procedures • Webinars *Special Pricing* • Quality Control • Exam Readiness • Licensing • Legal Reviews

AUDIT DEFENSE AND RESPONSE

CFPB Audit Preparation and Response Is your company CFPB compliant? Could your company survive a CFPB Audit? Do you even understand how many policies and procedures have been promulgated, and that each and every one you miss means ever increasing fines and reporting issues? The CFPB has stated they intend to audit every mortgage company in America. Are you ready for that? With our program we provide your CFPB manuals, customized policies, and procedures. With the Audit and MLO Package you receive 6 months of regulatory question support. If we also provide the Governance and Training Packages, you receive 12 months support. Our Expert is a 24 year veteran of the Mortgage Industry. He has ten years of experience as a Legal and Compliance Officer. He is admitted to the California Bar and five Federal Districts. He has managed many situations involving federal or state agency audits. He learned from experience the nuances of agency actions and knows how to prevent problems or defend against such situations.

Contact Expert Services at (800) 557-6580. Or you may email us at nl@lockelaw.us All inquiries will be kept strictly confidential. This is not an offer for legal services, but rather for his expert review and opinion about your particular situation. All fact patterns are different so the results will vary. No guarantees are expressed or implied. The best time to contact us is when you receive notice of a potential problem, not after.

Mortgage Seminars MortgageSeminars.com 248-403-8181 Cost: Only $19.95 per month per physical office location Jeff Mifsud, a former FHA Direct Endorsed Underwriter trained by HUD and an FHA Originator for over 15 years, is publisher of The FHA Originator, a monthly marketing newsletter which gives you… • • • •

FHA guideline news to keep you updated FHA Marketing tips and downloads that are easily customized Personal development tips to help you develop your character Full access to all previous FHA marketing downloads!

No contracts so sign up today and give yourself the tools to brand yourself as The FHA Expert in your marketplace. Cost: Only $19.95 per month per physical office location.

DIRECT MAIL

LENDERS COMPLIANCE GROUP 167 West Hudson Street - Suite 200 Long Beach | NY | 11561 | (516) 442-3456 www.LendersComplianceGroup.com The first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance. Pioneers in outsourcing solutions for mortgage compliance. Our Compliance Team Will: Leverage your existing employees. Improve your productivity. Collaborate on projects. Make the most of your current technology. Bring innovation to your company. Be a strong cultural fit. Free you to focus on your core competencies. Give you access to world-class expertise. Lower your total operational costs.

Titan List & Mailing Services, Inc. 1020 NW 6th St Suite D, Deerﬁeld Beach, FL. 33442 (800) 544-8060 www.TitanLists.com Titan List and Mailing Services, Inc. is a direct marketing agency that offers a complete range of advertising and design services. The firm specializes in data lists (mail/phone), printing, direct mail, graphic and website design as well as internet and SEO marketing. Starting in 1998, the company has, since then employed highly skilled individuals who have considerable experience regarding marketing trends. The company manages the complete in-house campaign themselves including Design, Data Lists, Printing, Postage, and Mailing.

EDUCATION

PRIVATE FINANCING

WHOLESALE LENDERS

BOOTS ACROSS AMERICA TOUR 2014-2015 Beverly@BootsAcrossAmerica.org

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

Certified Military Home Specialist Beverly Ray Frase "Training Boots on the Ground"

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

Since 2009 â&#x20AC;˘ Trained 3,000 CMHS course grads â&#x20AC;˘ Trained for Depts of HUD, Treasury & more â&#x20AC;˘ 20+ years' experience in real estate & finance, military life

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

COMING TO YOUR CITY!

MARKETING

RETAIL BRANCH

Real Estate Mortgage Network, Inc. www.remnwholesale.com 866-933-6342

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

Maaverick Funding Corp. is a direct mortgage lender licensed in 30 states across the country. Haavving obttained FHA, VA A, USDA and Fannie Mae appro ovals, Maaverick is growing and seeking top talent for their expanding nationwide footprint.

Interested in joining our Wholesale Division? Send your resume to aerecruiting@remn.com

Phone: 855.422.5917 ny NJ NJ,, 07054 9 Entin Rd., Parsippany Visit us at www w.Ma . averickFundingg.com Maverick Fundingg Corp. NMLS# 7706

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WHOLESALE/CORRESPONDENT LENDERS

United Wholesale Mortgage 800-981-8898 www.uwm.com Contac t: info@afr wholesale.com

888.664.2101 AFR Wholesale ranked #1 with the most Sponsor Originated FHA 203(k) closed loans.*

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UWM has a full set of mortgage products to meet all of your lending needs with Conventional, FHA, USDA (Rural Development), VA, Jumbo, HARP 2.0 and DU Refi Plus. With UWMâ&#x20AC;&#x2122;s ELITE program, you will receive the most aggressive conventional rates and pricing in the industry for your elite borrowers! Discover Lending Made Easy with United Wholesale Mortgage!

n National Mortgage Professional Magazine n FEBRUARY 2015

Online Marketing

NationalMortgageProfessional.com

TagQuest www.myharpleads.com TagQuest.com 888-717-8980

REMN has FHA, USDA, 203k, VA and Conventional solutions to fit the needs of your customers. But, at REMN, our most valuable product is our people. The REMN Sales and Operations Teams give you - and your loans - the time and attention that you deserve. Even better, at REMN, same-day approvals are guaranteed.* You can rely on us to get the little, yet vital, things taken care of on time.

FEBRUARY 2015 n National Mortgage Professional Magazine n NationalMortgageProfessional.com