April 2014

April Volume 2, Issue 3

Change

By Kurt Gonzales

When I was asked to write something for our monthly newsle er, frankly I struggled to find a topic that I felt everyone would enjoy.

Then I thought, why not talk about the industry we all share. It is impossible to talk about the mortgage industry without first talking about regula on. All industries go through change, it just so happens that the biggest change for us is the implemen‐ ta on of Dodd‐Frank. We s ll have a long way to go before all the change is imple‐ mented. Any me there is “change” for us as people or for companies, there are basi‐ cally two ways to adapt ‐ put our heads in the sand and wish things were different or embrace, adapt, and act proac vely.

It doesn’t take long to find informa on on companies that have put their heads in the sand in the mortgage business. In talking with many of our compe tors most people would be shocked at the blatant disregard for regula on that goes on today in all are‐ as, whether it has to do with loan officer

compensa on, marke ng, opera on poli‐ cies and procedures and so on.

Change in the form of regula on isn’t unique to the mortgage industry; there are other heavily related industries includ‐ ing health care, avia on, and transporta‐ on. Embracing change is essen al for companies to succeed and the evidence of those that didn’t is extensive. Sony dropped the ball in failing to adapt the Walkman as iPods and MP3 players came to market. Blockbuster failed to adapt in the movie rental business and ul mately went bankrupt.

I believe Service First has a great culture of embracing change and we have seen this in many areas including opera ons, origina‐ on, compliance, secondary, and technolo‐ gy. I came across a very good ar cle on this topic by Richard Guha, a top management advisor, and I encourage you to put Service First to the test. ConƟnued on page 15

Inside this issue Personality Traits of Leaders ...... 3 Home Prices Grow ...................... 4 New Rules for FHA ...................... 5 Image .......................................... 4 Produc on Number .................... 7 Re rement Income ..................... 8 13 Things to Do for Yourself ....... 10

Special points of interest  VA Property Requirements  Birthdays, Anniversaries and New Hires  USDA Deduc ons from Income  Interest and Dividend Income Requirements

The Hand Off...

It certainly wasn’t easy for Lucie, but it had to be done.

Carlos closed a loan at the very end of the month knock‐ ing Lucie out of the number one spot in Laredo.

Consequently Lucie had to turn the trophy over to Car‐ los. She was a good sport about it but as you can see, it was a moment to remember!

“The moment of victory is much too short to live for that and nothing else.” ~ Mar na Navra lova, tennis player ‐

What is Important for Success?

Amazing Lessons from Albert Einstein

Here are 10 a tude a ributes that can put you on the road to success: 1. Have a passion for what you do. Work should be fun, if it isn’t take inventory of the reasons it is not and fix them.

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Follow your curiosity

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Perseverance is priceless

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Focus on the present

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The imagina on is powerful

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Make mistakes

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Live in the moment

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Create value

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Don’t expect different results

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Knowledge comes from experi‐ ence

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What is most important is knowledge, skill, and talent. However, many of your compe tors have these same traits. The key to bea ng the compe on and achieving success is mental, it is re‐ flected in your a tude and service. When an underdog wins a sports compe on, it is a tude that made the difference.

Learn the rules and then play

2. Set an example of trustworthiness. People have confidence in trustworthy individuals and want to work with them.

3.

Be flexible, except with Core Values. It is a given that your plans and strategies will change over me. But flexibility to change gives you an advantage over others who are not as recep ve to change. Do not compromise your Core Values.

4.

Don’t let fear of failure hold you back. You will learn from your mistakes so don’t be afraid to try something new.

5.

Don’t procras nate. Planning and thinking are good but make mely decisions before opportunity passes you by.

6.

Take care of yourself. Your health is a valuable asset. Maintain a balanced life between family, work, and play.

7.

Believe in yourself. Your confidence is contagious to your coworkers, customers, and sup‐ pliers.

8.

Accept cri cism graciously by admi ng your mistakes.

9.

Maintain a strong work ethic. Your coworkers will follow the lead. It also will help beat the compe on.

10. Rebound quickly, don’t let anything keep you down. Learn from setbacks and move on.

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Teamwork in the Workplace Be certain you understand the bene‐ fits of teamwork. Any project you are working on will be done in a quicker and more efficient way. All of your team needs to feel important.

The key to a successful team is that everyone shares the same passion and focus to achieve the desired goal.

That can only happen when every‐ one on the team knows that they are individually important for the success of the team. Make all feel they’re responsible for the outcome.

Encourage inputs and sugges ons.

This helps to establish a sense of pur‐ pose for everyone and may also help someone come up with a sugges on

We Are Be er Together!

Personality Traits of a Great Leader If you want to be a leader who a racts quality people, the key is to become a person of quality yourself. All great leaders keep working on themselves un l they become effec ve. Here’s how:

Learn to be strong but not rude. It is an extra step you must take to become a powerful, capable leader with a wide reach.

Learn to be kind but not weak. We must not mistake kindness for weakness. Kindness isn’t weak; it is a certain type of strength. We must be kind enough to tell somebody the truth and considerate enough to lay it on the line. We must be kind enough to tell it like it is,

Learn to be bold but not a bully. To build your influence, you’ve got to walk in front of your group. You’ve got to be willing to take the first arrow, tackle the first problem, discover the first sign of trouble.

You’ve got to learn to be humble but not mid. You can’t get to the high life by being mid.

Some people mistake midity for humility. Humility is a grasp of the distance between us and the stars, yet having the feeling that we’re part of the stars. So humility is a virtue, but midity is a disease. Timidity is an afflic on. It can be cured, but it is a problem.

Be proud but not arrogant. It takes pride to win the day. It takes pride to build your ambi on.

The key to becoming a good leader is being proud without being arrogant. If someone is smart and arrogant, we can tolerate that. But if someone is ignorant and arrogant, that's just too much to take.

that no one else has thought of.

Organize mee ngs/ac vi es regular‐ ly. It is always a good idea to have ac vi es, ou ngs, or mee ngs that are fun and playful. It helps every team member to know and under‐ stand the other members of the team.

Offer recogni on. Everyone loves to be no ced for their hard work. You can give out cer ficates, bu ons, or awards to team members that have been instrumental in the team’s success.

Delegate responsibili es. That means not only less work for you , but also shows that you trust other members of the team enough to entrust them with some key respon‐ sibili es. It’s a great confidence builder and you might discover some‐ one that has great leadership quali‐ es or methods of working in a team which can help everyone.

Develop humor without folly. That’s important for a leader. In leadership, we learn that it’s OK to be wi y, but not silly. It’s OK to be fun, but not foolish.

Lastly, deal in reali es. Deal in truth. Life is unique. The whole drama of life is unique. It’s fasci‐ na ng. And what skills that work well for one leader may not work at all for another. But the fundamental skills of leadership can be adapted to work well for just about everyone: at work, in the community, and at home.

Don’t be afraid to let someone else shine. A team is so much stronger together than individually, use that to the team’s advantage.

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3

Home Prices grow 7.6% in February Black Knight Financial Services released its Home Price Index (HPI), no ng that home prices in the U.S. rose 0.7 percent for the month of February to an average of $233,000. The slight increase for the month reflects an overall yearly increase of 7.6 percent, according to the financial company.

Black Knight's analysis validates previous reports from the Federal Housing Finance Agency (FHFA), which reported home prices rising 6.9 percent year‐over‐year from February 2013 to February 2014.

The S&P Case‐Shiller index should fur‐ ther clarify market trends for the spring and upcoming summer months.

The Black Knight report found that Febru‐ ary home prices were 13.5 percent off of the June 2006 peak.

Assuming no large economic shocks (including a larger than expected increase in interest rates), the market should con‐

nue to see posi ve growth in 2014, but at a more moderate pace—including for the coming summer months—than we saw in 2013. Home price apprecia on this year will likely fall somewhere in the 2‐4% range.

States with the largest changes from last month include Oregon (1.4 percent), Washington (1.4 percent), California (1.3 percent), Nevada (1.2 percent), and Ha‐ waii (1.1 percent).

California metros experienced large gains month‐over month, with eight of the top ten metros for growth residing in the Golden State. The HPI increased the most in San Jose (2.6 percent); San Francisco (2.2 percent); and Santa Rosa, California (1.8 percent).

Colorado and Texas each saw new price peaks in February, jumping to $259,000 and $188,000, respec vely.

Calculation of Reserves Reserves may not include the following for manually underwri en loans:

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the amount of cash taken at se lement in cash‐out transac ons, incidental cash received at se lement in other loan transac ons,

gi funds in excess of the amount required for the cash investment and other expenses,

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equity in another property or borrowed funds from any source.

Retirement Accounts Fannie says that you can use 70% of the balance of re rement accounts to verify the 36 month distribu ons. So, what is the basis you will use to calculate the 70%? If re re‐ ment income is paid in the form of a distribu on from a 401(k), IRA, or Keogh re re‐ ment account, determine whether the income is expected to con nue for at least three years a er the date of the mortgage applica on. In addi on:

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the borrower must have unrestricted access without penalty to the accounts; and

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if the assets are in the form of stocks, bonds, or mutual funds, 70% of the value (remaining a er any applicable costs for the subject transac on) must be used to determine the number of distribu ons remaining to account for the vola le nature of these assets.

Documenta on of asset ownership must be in compliance with the Allowable Age of Credit Documents policy (see B1‐1‐03, Allowable Age of Credit Documents and Federal Income Tax Returns (09/24/2013), for addi onal informa on).

Don’t Trip Over New Rules for FHA

Three important items that can trip you up:

1.

Manual underwrites can take you by surprise. It's not just an AUS r efer that can send your loan down this path. Now is probably the me to thoroughly review ALL the triggers for a manual underwrite.

2.

Gi s can no longer be used for cash reserves on an FHA manually underwri en loan. HUGE change. And again, a poten al deal killer if your file gets downgraded and you didn ’t see it coming.

3.

Heavy reliance on an FHA non‐occupied co‐borrower income is a problem if residual income is needed as a compensa ng factor. Only count the occupant's income.

“Now is probably the time to thoroughly review ALL the triggers for a manual underwrite. “

Your Image You have just a few seconds to create your first impression when you meet someone new. And although clothes don’t make the man, they certainly affect the way you feel about your self.

When you don’t look good, it changes the way you carry yourself and interact with others.

The way you walk tells you a great deal about how you feel about yourself. If your shoulders are slumped and you seem lethargic it would indicate a lack of self confidence and enthusiasm. Prac ce good posture, stand up straight and make eye contact.

Compliment others; the best salesman is first and foremost a good listener. Get in the habit of praising others. Refuse to gossip and you will become the most liked and confident person in the room.

Always try to sit at the front of the room.

Si ng at the back indicates you may be afraid of being no ced and this reflects a lack of self confidence. By deciding to sit

in the front row, you can get over this reluctance and build your self confidence at the same me. You will also be more visible to the important people talking from the front of the room.

Speak up during discussions, don’t be afraid of saying something stupid, that fear is not jus fied. People are much more accep ng than you imagine. By making an effort to speak up at least once in every discussion, you become a be er speaker and more confident in your own thoughts. You will be recog‐ nized as a leader by your peers.

Work out, you will improve your physical appearance and accomplish something posi ve. It makes you feel be er and creates posi ve momentum for the rest of the day.

Don’t focus so much on yourself. Con‐ centrate on the contribu on you are making and don’t worry about your per‐ ceived flaws.

5

May Birthdays Name

Birthday

Posi on

Loca on

Natalee Davenport

1‐May

Branch Manager

Richardson

Juan Reyes

4‐May

Loan Officer

Legacy

Dallas Cowan

4‐May

Business Development Rep

Tempe

Gisela Mendoza

9‐May

Loan Officer Assistant

Laredo

Christopher Cox

9‐May

Loan Officer

Waterview

Les Odom

12‐May

Chief Opera ons Officer, EVP

Waterview

Veronica Allen

12‐May

Loan Processor

Arlington

Linda Sco

12‐May

Loan Officer Assistant

Greenville

Elvira Rodrigues

12‐May

Loan Officer

Richardson

Jeffrey Cantrell

13‐May

Intern

Covenant

Chris na Tovias

17‐May

Recep onist

Arlington

Richard Smith

19‐May

Loan Officer

Plano West

Debora Dowling

27‐May

Loan Officer Assistant

Arlington

Kevin Johnson

29‐May

Branch Manager

Legacy

Brandi Shoults

30‐May

Administra ve Assistant

Longview

Angela Liebel

30‐May

Recruiter

Plano West

Christy McClung

31‐May

Loan Delivery Specialist

Waterview

HEADS UP Social Security offices are cu ng back expenses and say they will stop offering SS number printouts (effec ve 8‐1‐14). And on 10‐1‐14, they will no longer issue benefit verifica on le ers.

They will now have to get them online or mail. WARNING: This could cause just another delay in the processing of your loans. Here’s the link: h p://www.socialsecurity.gov/thirdparty/whatsnew.html

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April Top Branches Units

Volume

1. Metro East

1. Metro East

2. Arlington

2. Aus n

3. Longview

3. Arlington

4. Aus n

4. Richardson

5. Legacy

5. Longview

April Top Loan Officers Volume

Units 1. Tom Holyfield

1. Jason Moreland

2. Jason Moreland

2. Natalee Davenport

3. Natalee Davenport

3. Tom Holyfield

4. Dina Pierson

4. Monica Mitchell

5. Monica Mitchell

5. Linda Davidson

This is a great April!

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Using Retirement Income Interest/Dividend Income FHA · Requires 2‐year history of receipt · Verify likelihood of con nuance for the next 3 years (i.e., assets genera ng income s ll exist) · Income averaged over 2‐year me period (unless declining, then use most prudent calcula on based on documenta‐ on gathered regarding possible assets deple ons, etc.) · Subtract down payment and close ng cost funds (if being used) from assets and create projected income/dividend analysis.

VA · Requires 2‐year history of receipt · Average income over last 2 years (unless declining, then use most prudent calcula on based on documenta on gathered regarding possible assets deple ons, etc.. · Verify likelihood of con nuance for the next 3 years (i.e., assets genera ng in come s ll exist) in order to use as effec ve income · If income cannot be considered ‘effec ve’, can be used instead to offset debts between 10 to 24 months dura on.

Fannie · Requires 2‐year history of receipt · Verify likely to con nue for 3 year in the future · Copies of account statements verifying assets · Copy of signed federal tax returns

Freddie · Requires 2‐year history of receipt · Verify likely to con nue for 3 years in the future · Copy of account statement verifying assets · Copy of signed federal tax returns

USDA · Requires 2‐year history of receipt · Verify likely to con nue for 3 years in the future · Copy of account statement verifying assets · Copy of signed federal tax returns · If using liquid assets to close, only the interest generated by the Funds remaining will be given considera on as qualifying in come.

Can You Drop Your MI? At applica on, do the math and let your cli‐ ents know the es mat‐ ed number of years that must pass before the PMI will be eliminated.

The interest rate makes a difference, but here’s an example of a sales price/appraisal value of $250,000 at 6% interest rate, and based on mak‐ ing regular monthly payments (no principal prepayment).

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Down Payment

5% 10% 15%

Loan Amount

237,500 225,000 212,500

Term

30 yr 30 yr 30 yr

5% 237,500 20 yr 10% 225,000 20 yr 15% 212,500 20 yr

5% 237,500 15 yr 10% 225,000 15 yr 15% 212,500 15 yr If the interest rate is 1% lower than 6%, subtract one year If the interest is 1% higher than 6%, add one year

Years PMI/MIP Eliminated

11 yrs

9 yrs

6 yrs

6 yrs 4.5 yrs 3 yrs

4 yrs 3 yrs 2 yrs

Event Pics Arlington Branch at the Bowling Alley

Longview at the Ball Park in Arlington

Robert Wilson, Joseph Jackson, Thomas Holyfield, Kathy Glenn, Jessica Munoz, Brandi Shoults, Jordan Johnson, Jennifer Aber‐ crombie.

Richardson Branch having fun at the bowling alley

Ruth Ann Dunham and Eric Wommack and Ka e the Photo Bomber

Lunch & Learn event at Arlington Branch in April; Veronica Serna from Tarrant County Housing Partner‐ ship talking about Down Payment Assistance programs.

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13 Things to Do for Yourself This is from an article called 1000 Little Things H appy Successful People Do Differently. H ere’s anam azing list of things to start doing for yourself. #1. Start spending tim e w ith the right people. – These are the people you enjoy, w ho love and appreciate you, and w ho encourage you to im prove in healthy and exciting w ays. They are the ones w ho m ake you feel m ore alive, and not only em brace w ho you are now , but also em brace and em body w ho you w ant to be, unconditionally. #2. Start facing your problem s head on. – It isn’t your problem s that define you, but how you react to them and recover from them . #3. Start m aking your ow n happiness a priority. – Your needs m atter. If you don’t value yourself, look out for yourself, and stick up for yourself, you’re sabotaging yourself. Rem em ber, it IS possible to take care of your ow n needs w hile sim ultaneously caring for those around you. #4. Start being yourself, genuinely and proudly. – Trying to be anyone else is a w aste of the person you are. Be yourself. . #5. Start noticing and living in the present. – Right now is the only m om ent guaranteed to you. So stop thinking about how great things w ill be in the future. Learn to be in the ‘here and now ’ and experien ce life as it’s happening. #6. Start valuing the lessons your m istakes teach you. – M istakes are okay; they’re the stepping stones of progress. If you’re not failing from tim e to tim e, you’re not trying hard enough and you’re not learning. Take risks, stu m ble, fall, and then get up and try again. #7. Start enjoying the things you already have. – The problem w ith m any of us is that w e think w e’ll be happy w hen w e reach a certain level in life – a level w e see others operating at – your boss w ith the corner office, that friend of a friend w ho ow ns a m ansion on the beach, etc. U nfortunately, it takes aw hile before you get there, and you could end up spending your w hole life w orking tow ard som ething new w ithout ever stopping to enjoy the things you have now . #8. Start creating your ow n happiness. – If you are w aiting for som eone else to m ake you happy, you’re m issing out. Sm ile because you can. Choose happiness. Be happy w ith w ho you are now ; happiness is often found w hen and w here you decide to seek it. . #9. Start giving your ideas and dream s a chance. – In life, it’s rarely about getting a chance; it’s about taking a chance. You’ll never be 100% sure it w ill w ork, but you can alw ays be 100% sure doing nothing w on’t w ork. #10. Start believing that you’re ready for the next step. – You are ready! Think about it. You have everything you need right now to take the next step forw ard. #11. Start cheering for other people’s victories. – Start noticing w hat you like about others and tell them . Be happy for those w h o are m aking progress. Cheer for their victories. W hat goes around com es around, and sooner or later the people you’re cheering for w ill start cheering for you. #12. Start helping those around you. – Care about people. Guide them if you know a better w ay. The m ore you help others, the m ore they w ill w ant to help you. Kindness begets kindness. #13. Start being attentive to your stress level and take short breaks. – Slow dow n. Breathe. Give yourself perm ission to pause, regroup and m ove forw ard w ith clarity and purpose. W hen you’re at your busiest, a brief recess can rejuvenate your m ind and increase your productivity. These short breaks w ill help you regain your sanity and reflect on your recent actions so you can be sure they’ re in line w ith your goals.

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VA Property Requirements 

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       

General: Must be free of hazards that affect the health and safety of occupants, structural soundness of property, or impair the use and enjoyment of property.

Handrails required on stairs with 3 or more ris‐ ers.

Severe tripping hazards must be remedied (i.e., major buckling of concrete).

25% maximum non‐residen al use.

Mechanical systems must be adequate, safe, and protected from elements.

Conven onal hea ng system must be present in all homes to maintain temperature of 50 de‐ grees in areas with plumbing (i.e., wood stove cannot be only heat source).

Solar systems for water and space hea ng must have reliable backup system.

Roof must have 2 years of remaining life and no more than 3 layers of shingles.

Crawlspace must have adequate access, be clear of debris and be properly vented. Must have access to ductwork and plumbing.

Excessive dampness or ponding of water in crawlspace must be corrected.

Natural ven la on of a cs and crawl spaces must be provided.

Laundry and storage space may be shared in a 2‐ 4 unit.

Rear yard must have access. Row units may be by means of alley, easement, or passage through subject dwelling.

Private streets must have permanent easement

            



and be maintained by HOA or maintenance agree‐ ment.

Streets must have all‐weather surface.

Living unit must have its own access.

Unit u li es may not pass over, under or through another living unit unless there is legal and perma‐ nent access for maintenance and repair.

Must be space between buildings for maintenance of exterior walls.

Termite cert required; treatment required if neces‐ sary.

Lot must drain away from dwelling.

Exterior wood must be protected from elements.

Chipped or peeling paint must be remedied.

Proper es built prior to 1978 must have all defec‐ ve paint surfaces remedied both interior and exterior.

Property cannot be located within a high‐pressure gas or petroleum easement. If located within 220 yards special cer fica ons will be required.

Property cannot be located within a high‐voltage electric line easement.

Connec on to public water/sewer disposal sys‐ tems is only required when mandated by building, planning or health authori es.

Private water systems must be tested.

Water treatment systems are allowed only if pub‐ lic water is not available and water supply is from aquifer confirmed uncontaminated by health de‐ partment.

Shared wells must be adequate and have mainte‐ nance and well‐sharing agreements.

How Do Closings Differ?

For one, the par es present at a closing for a refinancing are different (and there are fewer of them) than those at a pur‐ chase closing: There is no seller (it's a refinance of the ex‐ is ng loan) or real estate agent present, and some mes it's just the owner of the home and a representa ve for the lender.

Furthermore, at a closing for a refinance loan, the borrower will get something called a rescission period. This is a three‐

day window during which the borrower can walk away from the refinance loan without penalty.

The lender must then refund the fees the borrower paid (even the appraisal cost) and give up their rights in the prop‐ erty. If the borrower does not decide to rescind, the lender will fund the new loan, and the closing agent will use the funds to pay off the previous mortgage loan.

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May Anniversaries

Name

Length of Service

Loca on

Posi on

Deneita Gamble

1 year

Waterview

Appraisal Underwriter

Jeffrey Cantrell

1 year

Covenant

Intern

Stephanie Bertling

1 year

Waterview

Loan Processor

Bryan Lueders

1 year

Legacy

Loan Officer Assistant

Juan Reyes

1 year

Legacy

Loan Officer

Tiffany Jones

1 year

Waterview

Loan Delivery Specialist

Jessica Munoz

1 year

Longview

Processor Assistant

Cameron Coles

1 year

Waterview

Marke ng

Jennifer Henexson

1 year

Metro East

Loan Processor

Audra Hylton

1 year

Metro East

Loan Processor

Travis Arp

2 years

Aus n

Processor

Nash Wisdom

2 years

Aus n

Loan Officer

Tom Burris

2 years

Covenant

Loan Officer

Joseph Jackson

2 years

Longview

Loan Officer

Rachel Smotherman

2 years

Waterview

Jr. Underwriter

Lisa Mustaca

3 years

Metro East

Marke ng Assistant

Jeffery Brooks

4 years

Richardson

Loan Officer

Geneva Hoyle

12 years

Waterview

Accoun ng Specialist

Robert Bescos

12 years

Waterview

IT Manager

West Plano BAM win‐ ner for March and April— Terry Paciencia Congratula ons!

Covenant’s Ribbon Cu ng

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Six USDA Deductions In order to qualify for a USDA loan, there are certain income limits depending upon the loca on of the property your cli‐ ents are buying. Here’s the link: h p://eligibility.sc.egov.usda.gov

However, the income limits are a er the so‐called “allowed deduc ons”. Here are the 6 most common deduc ons that can be subtracted from gross income—and s ll meet the USDA income limits.

Childcare expense is one of the biggest deduc ons (from gross income) that will help more of your clients qualify. The only thing needed is a simple le er from a childcare provider sta ng the dollar amount paid annually. If you clients’ income is already below the limit, no documenta on is needed.

Oh, one more benefit: Childcare is NOT counted as a debt and will not affect the debt‐to‐income ra os.

New Hires in April Name

Posi on

Loca on

Joelle Huber

Loan Officer Assistant

Aus n

Savy Voeun

Loan Officer

Waterview

Jessica Wise

Loan Delivery Specialist

Waterview

Jamey Metcalf

Loan Processor

Longview

Juan Rojas

Servicing Specialist

Waterview

Karin Back

Business Development Rep

Tempe

13

SFMC Corporate Roster

Name

Title

Phone

Email address

Shawn Broussard

President/CEO

214‐576‐2972

sbroussard@servicefirstmtg.com

Les Odom

Chief of Opera ons

214‐576‐2903

lodom@servicefirstmtg.com

Shelby Seaman

HR Manager

214‐576‐2971

sseaman@servicefirstmtg.com

Mark Resmini

HR Director

214‐576‐2939

mresmini@servicefirstmtg.com

Sandra Wiley

Compliance Manager

214‐576‐2973

swiley@servicefirstmtg.com

Jim Berkley

Underwri ng Manager

214‐576‐2912

jberkley@servicefirstmtg.com

Kayla Eames

Accoun ng ‐ Vice President 214‐576‐2937

keames@servicefirstmtg.com

Robert Bescos

IT Manager

214‐576‐2968

rbescos@servicefirstmtg.com

Dee Hoyle

Secondary Marke ng ‐ VP

214‐576‐2904

dhoyle@servicefirstmtg.com

Laura Baima

Post‐Closing Manager

214‐576‐2957

lbaima@servicefirstmtg.com

Megan Williamson

Director of Mktg. & Bus. Dev. 214‐576‐2948

mwilliamson@servicefirstmtg.com

Ma hew Royal

Regional Manager 5300

mroyal@servicefirstmtg.com

John Donnelly

Regional Vice President 8500 817‐330‐0548

jdonnelly@servicefirstmtg.com

Kurt Gonzalez

Regional Manager 7000

kgonzalez@servicefirstmtg.com

Sonna Cretsinger

Reg Oper. Mgr. 7000 & 8500 817‐330‐0545

scretsinger@servicefirstmtg.com

Debbie Russo

Reg.Oper.Mgr.Metro & Longview

214‐576‐2975

drusso@servicefirstmtg.com

Jana Bishop

Closing Mgr for Luna &

214‐576‐2929

jbishop@servicefirstmtg.com

Bryan Stuckmeyer

Closing Mgr. for McGlinchey 214‐576‐2950

bryan@servicefirstmtg.com

214‐576‐2967

972‐985‐0000

Supreme Court to Resolve TILA Rescission Issue Currently, there is a split in the U.S. Federal Circuit Courts of Appeal regarding the Truth in Lending Act’s (TILA) right of re‐ scission. Under TILA, a borrower is permi ed to rescind their mortgage loan within three days of closing or when the re‐ quired rescission forms are delivered, whichever is later. If the disclosures are not made, the right of rescission expires three years a er consumma on of the loan.

The issue the circuit courts can’t agree on is what ac ons the borrower must take in order to have a valid rescission. Some of the courts have held that the borrower need only provide the lender with a no ce of rescission within the three‐year me period. Once that no ce has been provided, those courts will allow the borrower to sue for rescission even if the suit is filed more than three years a er the viola on.

14

Change

Continued from page 1

Some of the key characteris cs which dis nguish companies which thrive from change are:

1. They seek to not only embrace and welcome change, but drive it.

2. They never reject an idea, however dumb it seems, with‐ out inves ga ng and working to make it be er. Few ideas are good when first ini ated; many can be im‐ proved and made strong.

3. They have a strong customer/consumer focus, not only as a reac on to change, but in “ge ng ahead” of chang‐ es.

4. They boast an internal culture and capability to take advantage of change, whether it is through technology, regulatory or channels of distribu ons.

5. There’s a real understanding of the exis ng business model.

6. They encourage people to “stray from their own lanes.”

While uncomfortable for many, companies where roles are indis nct tend to be more adaptable, even if they are some‐ mes less efficient.

7. They encourage and reward curiosity. The desire to under‐ stand and to explore new ways to do things is essen al if a company is to profit from change.

8. There is an assump on that everything a company does can be changed and much of it should be. “Received wisdom” is dangerous. Doing anything because “that’s the way we have always done it,” or even, “we developed the perfect process a couple of years ago,” is an enormous barrier to improve‐ ment.

Buying Beats Renting Zillow’s break‐ even horizon analysis came to an interes ng conclusion: In half of U.S. met‐ ros, buying a home is a be er financial deci‐ sion than ren ng for buy‐ ers intending to stay in their home at least two years.

buying versus ren ng, including upfront payments, closing costs, an cipated monthly rent and mortgage payments, taxes, u li es, maintenance, and renova on costs.

The group also takes into account different asset streams associated with different housing situa ons. For example, a buyer's home equity is factored into the final figure, while a renter's ability to invest some of the money they would have spent on a purchase is factored into the final figure for com‐ parison.

"Rents keep rising, and mortgage interest rates remain very low, which is helping to skew the rent vs. buy decision toward buying for those who can afford it. Many renters may ask themselves why renew a lease, when you can break even on the same home in less me in many areas," said Zillow chief economist Dr. Stan Humphries.

The company’s analysis includes all costs associated with

Impress Others in 60 Seconds or Less    

Treat your Spouse well Look others in the eye Give Compliments freely Do what you say you’re going to do

   

Stand up for your beliefs, respec ully Ask about kids or grand kids Know what’s going on in world Listen more than you talk

15

Easter 2014 Ruth Ann, Chris na, Ka e and Eric in Mansfield Branch.

Rock of Realtors event at the Arlington Board of Realtors (ARBOR). From le to right, these are Kevin Copher, Audrey Chinchilla, Pat Quick, and Josh Calahan.

Jennifer Po er, Coldwell Banker; Kirsten Olsen‐S er, First American; Melissa Piper‐Barr, Hexter Fair; Jeremiah Vensel

The Arlington Branch booth at the ARBOR Affiliate Expo

Mark Po er and Carolyn Cantrell

Mark Po er, Melanie Chaiken, Carolyn Cantrell

Joe Armstrong & Mark Po er

16

Melissa Piper‐Barr, Hexter Fair; Kirsten Olsen‐S er, First American Home Warranty; Mark Po er, Lisa McCown

Vicki Sutherland, Pruden al; Melanie Chaiken;Toni Mor‐ row and Sandy Jendal with Pruden al

LOAN TYPE

INTEREST/DIVIDEND INCOME REQUIREMENTS

FHA

   

VA

Freddie

USDA

Verify likelihood of con nuance for the next 3 years (i.e., assets genera ng income s ll exist) Income averaged over 2‐year me period (unless declining, then use most prudent calcula on based on documenta on gathered regarding possible assets deple ons, etc.)

Subtract down payment and closing cost funds (if being used) from assets and create projected income/dividend analysis.

 

Requires 2‐year history of receipt



Verify likelihood of con nuance for the next 3 years (i.e., assets genera ng in come s ll exist) in order to use as effec‐ ve income

 Fannie Mae

Requires 2‐year history of receipt

            

Average income over last 2 years (unless declining, then use most prudent calcula on based on documenta on gathered regarding possible assets deple ons, etc..

If income cannot be considered ‘effec ve’, can be used instead to offset debts between 10 to 24 months dura on Requires 2‐year history of receipt Verify likely to con nue for 3 year in the future Copies of account statements verifying assets Copy of signed federal tax returns Requires 2‐year history of receipt Verify likely to con nue for 3 years in the future Copy of account statement verifying assets Copy of signed federal tax returns Requires 2‐year history of receipt Verify likely to con nue for 3 years in the future Copy of account statement verifying assets Copy of signed federal tax returns If using liquid assets to close, only the interest generated by the funds remaining will be given considera on as qualify‐ ing income.

Arlington Branch hosted a shower for Maria‐ na Montano and her, as yet unnamed, baby!

17 17

Laredo Office Renovates

Alex Bernal in his new office

18

From the HR Desk Mark Resmini Most of us no ced an increase in the cost of our health care premiums for 2014. The reality is that health in‐ surance gets more expensive every year, just like al‐ most everything else. In fact, health insurance gets more expensive at a faster rate than several other things in our economy do. For example, health care spending rose at the fastest pace in 10 years last quar‐ ter.

One of the main reasons for increases in health care premiums is because of u liza on. A key driver in the cost of an insurance plan for both employees and em‐ ployers is the amount of expected claims, so when the cost of claims increases, so does the cost of the cover‐ age.

When we look at ways we can lessen u liza on and the number of claims, we find that factors that affect health are principally behavioral. 50‐70% of all diseases are associated with modifiable health risks and are there‐ fore preventable.

Look at some of the behavioral risk factors that affect our health:  Obesity is widespread in the United States

 Diabetes rates among people ages 30 to 39 have risen by 70%

 46.5 million adults smoke cigare es

 More than 60% of Americans don’t get enough physical ac vity

 More than 25% of Americans are not ac ve at all

 About 1 in 7 people s ll don’t wear their seat belts, even though they drama cally reduce the risk of death and serious injury

In HR we have been working with our benefits broker and United Healthcare to provide access to wellness resources for our employees and ways to reinforce and reward taking steps to manage your health.

Be watching for upcoming informa on about a well‐ ness event planned for this June. In addi on, were you aware that we have access to a health discount program through UHC? The program offers savings of 5‐50% on many products and services to help you live a healthier life, including:

 Weight loss programs from Jenny Craig, NutriSys‐ tem and others

 Fitness Clubs

 Smoking Cessa on programs

 Vitamins and supplements

 Massage therapy

 Fitness apparel and equipment

 LASIK

 Cosme c dental services such as teeth whitening

 Health supplies

The program can be used to save on products and services for you, your spouse and your dependents, and can be accessed via the UHC website at:

h p://www.uhc.com/health_and_wellness/ staying_healthy/health_discount_program.htm

As employees, when we engage in our own healthcare, it helps us to be be er stewards of our own health and mo vates us to change lifestyle be‐ haviors that are ed to poor health.

Over the long term, it helps to enhance our overall health and quality of life, which in turn assists in con‐ trolling health care costs for both employees and em‐ ployers. As always, please don’t hesitate to reach out to HR if we can be of service to you.