March 2014

Service First Mortgage V O L U M E

March 2014

Focus on the Possibilities

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I S S U E

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N E W S L E T T E R

D A T E

By Les Odom

“Success is liking yourself, liking what you do, and liking how you do it.” ~Maya Angelou

1 Sales Strong

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LO Name on Docs

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FFIEC & Social Media

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FHA Inspections

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Top Producers

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April Anniversaries

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New Hires

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April Birthdays

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Improving Credit

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Texas Optimism

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Linda Davidson

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Leaving Money on Table

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FHA Acceptable Heat 17 Corporate Roster

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Non-Citizen FHA

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Whether you realize it or not, everyone is a Leader. It is doesn’t matter if you are the President, Manager, Loan Officer or even a part-time team member, you are a Leader. Each day, no matter what our roles we have the ability to impact the organization. Every decision you make and every action you take matters tremendously on the organization. Each of us has the ability to make a big difference in the organization, not just to the bottom line but also to the lives of others.

the end, it is taking the positive approach to solving issues that come our way. To me the one thing that each of us can do daily that brings about great results is having a positive attitude and focusing on the solution.

It is very easy to get buried in problems that face us daily whether it’s at work or in our personal life. And trust me, a positive focus doesn’t automatically appear. It’s a choice you make and it takes work. A negative attitude or solely focusing on the problem whether it is due to the environment we are faced with In today’s environment, our responsibilfrom seasonal challenges, regulations or ity has never been greater. Our busieconomic swings will do nothing but limness is more complex, has more regulait picture your life and your success. In order to Caption describing tion and is ever changing. The demands move forward you must choose to dwell of today are greatly different the orfrom graphic. on things that will empower you and demands of the past. The future is your team and to constantly focus on coming fast and what you do and say the solution (the possibilities). has an impact.

One of the things that cripples us most When I started out in the business many in business and life is a passive mindset. years ago, I learned quickly that no If you start off your day in a passive matter my role I could affect change. mode, you are setting the tone for deThis approach got me my first real opfeat. Being passive and having a negaportunity to be a manager. Well, let tive outlook are really the same thing, me tell you I was a bad manager when I as in the end neither will get you where started. And yes, even today I still you need to go. If you start off your day have opportunity for growth, as we all passive, you won’t have the energy and do. However in those early years I the passion you need to succeed and get learned something that changed the ahead. You need to attack each day tide for me. One thing that altered with a plan and with a positive focus. how I looked at being a manager and This story can fit 75-125 words. the headline will help you After all, oneway, good break can make up helped me to begin to develop as a keep the story focused.

Your headline is an important for all the bad breaks that have come leader. What was that one thing? Well part of the newsletter and should Examples of possible headlines before.

But you won’t get to that good simply, it was to FOCUS ON THE POSbreak if you are passive and negative. be considered carefully. include Product Wins Industry SIBILTIES NOT THE PROBLEMS. Now That one yes can overcome all theSave no’s Award, New Product Can understand this doesn’t mean youwords, ig- it should accuIn a few you have heard along the way.

So keep You Time!, Membership Drive nore the problems but you rately turnrepresent your the contents of moving forward andGoals, keepandfocusing Exceeds New Officeon focus from the problem to the solution the story and draw readers into the goal and the solutions.

Opens Near You. for that problem –THE POSSIBILITIES. In the story. Develop the headline before you write the story. This

Continued on page 20

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2013 Existing Home Sales Strong Existing-home sales finished 2013 with a slight increase, closing the book on the strongest year for sales since 2006, the National Association of Realtors (NAR) reported last month.

since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market,” said NAR chief economist Lawrence Yun. “We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population.”

While sales were up from November, it wasn’t new homeowners driving the increase: First-time buyers accounted for 27 percent of purchases in December, down from 28 percent in November and 30 percent in December 2012. All-cash sales—often reflective of investor activity—made up 32 percent of December transactions, unchanged from November and up from the previous year.

Total existing-home sales—including all completed transactions of single-family homes, townhomes, condominiums, and co-ops—increased 1.0 percent month-over-month to a seasonally adjusted annualized rate of 4.87 million last month. November’s sales rate was revised down to 4.82 million.

December’s sales were down year-over-year, coming up 0.6 percent short of December 2012’s pace of 4.90 million.

Removing all other types of sales, sales of existing single-family homes rose 1.9 percent from November to an adjusted annual rate of 4.30 million.

Compared to the prior year, single-family sales were down 0.7 percent.

For all of last year, NAR estimates there were 5.09 million existing-home sales, a 9.1 percent improvement from 2012.

“Existing-home sales have risen nearly 20 percent

Even with prices and mortgage rates slated to rise, NAR president Steve Brown says sales should hold strong in 2014 as job numbers improve. That doesn’t mean the year won’t be without challenges, though.

“The only factors holding us back from a stronger recovery are the ongoing issues of restrictive mortgage credit and constrained inventory,” Brown said. “With strict new mortgage rules in place, we will be monitoring the lending environment to ensure that financially qualified buyers can access the credit they need to purchase a home.”

The national median existing-home price for all housing types in December was $198,000, up 9.9 percent year-over-year. A comparatively smaller share of distressed sales (14 percent compared with December 2012’s 24 percent) accounted for some of the price growth, NAR reported.

The median existing single-family home price was $197,900, up 9.8 percent from the year prior.

NAR

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LO Name on Documents Is it really necessary for the loan officer’s name to be on the Note and Mortgage and do they have to match exactly the name on the 1003?

Yes it is necessary per Reg Z, Subpart E 1026.36(g) Here is the rule: 1026.36(g) (g) Name and NMLSR ID on loan documents. (1) For a consumer credit transaction secured by a dwelling, a loan originator organization must include on the loan documents described in paragraph (g)(2) of this section, whenever each such loan document is provided to a consumer or presented to a consumer for signature, as applicable;

names and NMLSR IDs pursuant to paragraph (g) (1) of this section are: (i) The credit application; (ii) [Reserved] (iii) The note or loan contract; and (iv) The security instrument.

(3) For purposes of this section, NMLSR ID means a number assigned by the Nationwide Mortgage Licensing System and Registry to facilitate electronic tracking and uniform identification of loan originators and public access to the employment history of, and the publicly adjudicated disciplinary and enforcement actions against, loan originators.

(i) Its name and NMLSR ID, if the NMLSR has provided it an NMLSR ID; and (ii) The name of the individual loan originator (as the name appears in the NMLSR) with primary responsibility for the origination and, if the NMLSR has provided such person an NMLSR ID, that NMLSR ID. (2) The loan documents that must include the

FHA and Sales Concessions FHA has very specific guidance regarding Sales Concession and how roster appraisers must consider them.

 Types of Concessions  Loan discount points  Loan origination fees  Interest rate buy downs  Closing cost assistance  Payment of condo fees  Builder incentives  Down payment assistance  Personal property

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Lender must provide a complete and ratified contract of sale and/or financing data.

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Appraisers must:  Report the dollar amount of the concessions  Identify the party providing the concession  Verify all sales transactions for seller concessions (many MLS systems don’t report)  Report the type and amount of concession on all comparable sales.  Make market-based adjustments to comparable sales for sales concessions that affected the sales price.

FHA reminds appraisers that ignoring sales concessions and the impact they may have on a sales price can easily lead to overvaluation.

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FFIEC and Social Media The final rule from FFIEC in regards to social media defines the purpose of the final social media rule.

That is: To protect the consumer to ensure:  Compliance with government rules & disclosures  Risks to financial institutions’ reputation  Risks to internal operations (security & privacy) Social media is defined as any interactive communication. It does not consider one on one emails or texts to be social media.  Texts if “blanket” text to many individuals)  Images  Audio or video recordings  Email if bulk or “blanket” email to many individuals)  Blogs  Websites  Bulletin boards/forums  Photo-sharing sites  Professional networking sites  Virtual worlds  Social games  Customer review websites  Messages sent through social media to consumers  Any new social media channels yet to be developed The guidance from FFIEC applies if you use social media for the following:  Attract business – using marketing and advertising articles, videos, downloads, etc.  Communicate with consumers  Quote interest rates or loan programs  Offer incentives  Get new loan applications  Invite feedback from customers/prospects  Testimonials  Respond to complaints  Offer financial advice List of rules and regulations where social media rules apply includes the following rules and regulations:  Truth In Lending Act/Reg Z  Equal Credit Opportunity Act/Reg B

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Fair Housing Act RESPA - Section 8 Fair Debt Collection Practices Act Unfair, Deceptive or Abusive Acts or Practices/ Sec 5 National Automated Clearing House Association Rules Bank Secrecy Act Anti-Money Laundering Act Gramm-Leach-Bliley Act – Privacy Rules and Data Security Guidelines CAN-SPAM Act Fair Credit Reporting Act

Get familiar with these regulations to help manage the risk.

Does not apply to an employee’s personal use of social media unless it is being used to attract business or communicate officially on behalf of the company.

It’s more about making sure proper consumer disclosures are part of your social media posts (like if you quote an interest rate, then APR and all the other requirements apply. Everyone must have a plan to manage reputation risks (think Target and the credit card breach).

Loan officers, processors, underwriters, and servicing staff must also comply to these regulations. You will need to know the rules and regulations for all applicable Acts. If you quote an interest rate, a down payment (even “no-down-payment”) or a payment using any of the social media methods mentioned, you must comply with Reg Z Truth In Lending rules, which include full disclosure of the terms of the loan.

Even if you send a private message using email or social media asking for a Credit Card number or Social Security Number and the customer gives it to you, we must be able to ensure that the information is secure and complies with the Gramm-Leach-Bliley Privacy Rules Act! Recently a loan officer from another company posted a “contest” on Facebook that if you send her a referral, your name will be entered into a drawing to win an iPad! RESPA Section 8 kickback violation! Be careful, gifts to Realtors are not allowed.

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Common Inspections Required by FHA FHA does have very few mandatory inspection reports. However, if during the appraisal inspection, the appraiser determines that there might be safety or health issues, they are obligated to require an inspection. If they feel that a structural issue may affect the value of the property (i.e., roof, foundation) they may also require inspections.

FHA appraisers are required to note any inspections for new or existing homes that are required by state or local government and comment on the appraisal report.

Here are some of the more common reasons an FHA appraiser would require an inspection repairs, inspections or certifications.

Termite Inspection: Only if evidence of current infestation required by lender or customary for the area. One is not required if there is evidence of previous infestation or repairs have been made due to wood-destroying insects.

Well & Septic: If the appraiser notes that the distance between the water supply and the septic system could be a potential for contamination, he may ask for an inspection. It’s up to the lender to determine if the well and septic meets local and state requirements and may ask for the local health department certification or inspec-

Marketing Meeting at Branch One

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tion.

Water Test: Only if the local health authority or lender requires a water test when a new home is built or an existing home is sold, will FHA require that it meet EPA’s minimum standards.

Handrails & Trip Hazards: Not automatic. Appraiser needs to comment if they feel that there is a safety risk. However the lender makes the final determination if handrails or sidewalk repairs are needed.

Underground Tanks: Only required if the appraiser sees any surface evidence of leakage or on-site contamination.

Lead-Based Paint Repairs: If the home was built prior to 1978 and the appraiser notes peeling or chipping paint, correction of defective paint surfaces is required. If repairs are done by a landlord, property owner or contractor, they must be “certified” and have taken training classes in order to repair leadbased paint surfaces.

Inspections: The final inspection of any repairs required by the appraiser must be inspected by the appraiser. The final inspection of any repairs required by an inspection report may be completed by anyone the lender selects. For new construction, the final inspection must be done by the appraiser and the appraiser must state that the new home complies with local building codes.

Branch One Sales Meeting

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February Top Branches Units

Sales are contingent upon the attitude of the salesman - not the attitude of the prospect. ~W. Clement Stone

'

Volume

1. Metro East

1. Metro East

2. Legacy

2. Longview

3. Longview

3. Legacy

4. Richardson

4. Richardson

5. Arlington

5. Arlington

“...you cannot eat every tadpole and frog in the pond, but you can eat the biggest and ugliest one, and that will be enough, at least for the me being. ” ― Brian Tracy, Eat That Frog!: 21 Great Ways to Stop Procras na ng ...

February Top Loan Officers Units

Volume

1. Tom Holyfield

1. Natalee Davenport

2. Natalee Davenport

2. Tom Holyfield

3. Linda Davidson

3. Linda Davidson

4. Carlos Garza

4. Carlos Garza

5. Michael Chalker

5. Michael Chalker

“The simple act of paying positive attention to people has a great deal to do with productivity.” ― Tom Peters

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April Anniversaries Name

Years

Baima, Laura

Brossman, Kristin L Chaiken, Melanie J Combs, Amy N David, Evelyn Gonzalez, Diana Striegel, Joy Terito, Whitney M Voeun, Savy WILLIAMSON, MEGAN L Wingham, Veronica R Zelada, Jael Cook, Dana Tynes, Thomas F Brown, Dennis C Dunham, Ruth Ann Edwards, Robert D Huntsberger, Rhonda L Mendoza, Gisela P Prater, Jennifer D Streng, Pilar A Camposano-Zepeda, Carina Quick, Patricia A Paciencia, Theresa M Edwards, Kerry M San Andres, Amanda C Winchester, Cathy J Davalos, Theresa Diane Gonzalez, Maria Hoyle, Donald C Skipper, Deborah B

Position

Location

1 year

Loan Delivery Manager

Corp

1 year 1 year 1 year 1 year 1 year 1 year 1 year

2 years 2 years 2 years 2 years 2 years 2 years 3 years 3 years

Loan Processor Loan Officer Warehouse Funding Spec.

Admin Assistant Corporate Recruiter Processor Assistant Loan Processor Loan Officer VP Marketing Loan Processor Loan Processor Associate Loan Officer Loan Officer Branch Marketing Mgr Loan Officer Loan Officer Receptionist Loan Officer Asst Loan Officer Asst Jr Loan Processor Loan Officer Asst Loan Officer

Gilbert, AZ Covenant Corp Covenant Corp Arlington Legacy Garland Corp Arlington Metro East Austin Legacy Metro East Mansfield Arlington Burleson Laredo Metro East Metro East Del Rio Arlington

3 years 4 years 4 years 7 years

Loan Processor Loan Officer Loan Processor Loan Officer

14 years 14 years 14 years 14 years

Loan Officer Set Up Processor VP Secondary Loan Officer

Plano West Richardson Richardson McKinney Garland Garland Corp Garland

1 year 1 year 1 year 1 year 1 years 1 years 2 years

QM Rule The rule establishes two types of Qualified Mortgages that have different protective features for consumers and different legal consequences for lenders:

1. A Rebuttable Presumption Qualified Mortgage will have an APR greater than APOR + 115 basis points (bps) + on-going Mortgage Insurance Premium (MIP) rate. Legally, lenders that offer these loans are presumed to have determined that the borrower met the Ability-to-Repay standard. Consumers can challenge that presumption, however, by proving that they did SERVICE

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not, in fact, have sufficient income to pay the mortgage and their other living expenses.

Safe Harbor Qualified Mortgages will be loans with APRs equal to or less than APOR + 115 bps + on-going MIP. These mortgages offer lenders the greatest legal certainty that they are complying with the Ability-toRepay standard. Consumers can still legally challenge their lender if they believe the loan does not meet the definitions of a Safe Harbor Qualified Mortgage.

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Shawn Broussard, Marcus Rush, and Megan Williamson at the Firefly Run at Legacy

New Hires in January Employee JILL JIMENEZ MICHELLE SHERRILL TRISTAN SHERRILL EVANELLY PHALEY JOSHUA DAVIS JENNIFER RAMIREZ TIMOTHY WYSOCKI JAKE MENDENHALL DALLAS COWAN IRENE MARTINEZ SARAH PARKHOUSE HECTOR MONTERO

Date Hired 3/3/2014 3/3/2014 3/3/2014 3/10/2014 3/17/2014 3/17/2014 3/17/2014 3/24/2014 3/24/2014 3/24/2014 3/24/2014 3/31/2014

Department AUSTIN PLANO WEST PLANO WEST METRO EAST UNDERWRITING UNDERWRITING UNDERWRITING GILBERT AZ TEMPE AZ TEMPE AZ TEMPE AZ GILBERT AZ

Job Title LOAN PROCESSOR LOAN OFFICER ASST LOAN OFFICER LOAN PROCESSOR JR UNDERWRITER JR UNDERWRITER UNDERWRITER III BUSINESS DEVELOPMENT REP BUSINESS DEVELOPMENT REP LOAN ADVISOR LOAN ADVISOR LOAN ADVISOR

"The choice to have a great attitude is something that nobody or no circumstance can take from you. " -Zig Ziglar

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April Birthdays Name

Birthdate

Locations

Roark, Shelly George, Alika

1-Apr 2-Apr

Austin Corp

Loan Officer Loan Delivery Specialist

Edwards, Kerry M

2-Apr

Richardson

Loan Officer

Henexson, Jennifer

5-Apr

Metro East

Loan Processor

Mccown, Lisa

8-Apr

Covenant

Marketing Assistant

Lueders, Bryan

9-Apr

Legacy

Loan Officer Asst

Littlejohn, Sharon D

9-Apr

Metro East

Loan Officer

Gonzalez, Maria

11-Apr

Garland

Set Up Processor

Smotherman, Rachel

11-Apr

Corp

Jr Underwriter

Reinhart, Marshal L

14-Apr

Covenant

Loan Officer

Williams, Jyme

15-Apr

Richardson

Loan Processor

Landoll, Catherine

16-Apr

Austin

Set Up Processor

Arp, Jody

18-Apr

Austin

Branch Manager

Bowen, Jenay R

18-Apr

Plano West

Loan Officer

Bertling, Stephanie

19-Apr

Garland

Loan Processor

Sterns, Keldrick

19-Apr

Corp

It Administrator

Hevel, Scott A

19-Apr

Legacy

Loan Officer

Mitchell, Leslie

19-Apr

Metro East

Loan Officer

Burris, Tommy

22-Apr

Covenant

Loan Officer

Best, John

23-Apr

Legacy

Loan Officer

Gonzalez, Diana

27-Apr

Corp

Corporate Recruiter

USDA Gus Question If a loan receives an Accept/Eligible GUS recommendation yet has an “authorized user account� requiring a manual downgrade to a Refer, then do the Ratio Waiver guidelines apply?

Answer: If a manual downgrade to a refer is required, then the file is a manual underwrite file and thus the AN 4729 Ratio Waiver requirements would apply.

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The authorized user account contributes to the credit score, and if the applicant cannot meet one of the three requirements outlined in AN 4729, then the credit score is not

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Suggestions on Improving Credit Credit is a big factor in getting a loan, but you may not realize just how much of an impact it can have on all aspects of your financial life. Your credit can influence everything from interest rates and insurance premiums to apartment rentals and even job eligibility.

The good news is you don't have to earn a high income or be flush with cash to have great credit. The most important thing you can do is make your payments on time and don't take on too much credit card debt Understand how it works Your credit history reflects your track record for paying back loans, as well as your current debt levels and access to credit. Three different credit agencies Equifax, Experian, and TransUnion collect information pertinent to your credit record and keep it in a credit report.

With your permission, lenders, landlords, insurers and employers can access these reports.

These reports are also the basis for your credit score, which is a numerical snapshot of your creditworthiness.

The most widely-used credit score is the FICO score, which ranges from 300 to 850. You have three different scores, one associated with each of the three credit agency reports. Borrowers with scores above 750 are generally considered excellent, while scores below 650 are considered poor.

Check your credit reports With so much riding on your credit history, it is important to check all three reports annually. You can do so for free once a year at AnnualCreditReport.com. At the same time, you'll want to make sure the details in the report are correct and legitimately reflect your borrowing activity; suspicious activity may be a sign of identity theft.

If you find an error in any of the reports, you'll want to go through the necessary steps to remove it or update it. You should start by contacting the lender or creditor that reported the inaccurate information and asking them to update your account. Depending on the nature and severity of the error, you may also want to contact the credit bureaus directly.

It is a hassle but, considering what's at stake, also time well spent. You can improve your credit score considerably just by correcting negative information.

Keep track of your score Unlike your credit reports, you'll need to pay to see your FICO or other credit scores unless you get it from

a lender or other service that pulls your score in the regular course of business.

Fair Isaac, the company that calculates FICO scores, uses a complex formula for coming up with this tally.

In a nutshell, however, the numbers are based on whether you pay your bills on time, how much of your available credit is outstanding, the types of loans you have and how long you've had them.

Pay your bills on time The single biggest influence on your credit score is whether you've made your loan payments and done so on time. Your payment history is 35% of your score and therefor is the biggest slice of the pie."

In fact, according to FICO, 96% of people with excellent credit (scores over 800) pay their bills on time.

Keep in mind that this number only reflects payments as they relate to your credit report. If you consistently pay your utility bills, for example, that won't influence your score. Your best defense: Set up automatic payments for the minimum amounts to make sure you're never tardy.

Keep balances in check The second biggest factor in your score is credit utilization, which is the percentage of your available revolving credit (i.e. credit cards) that is being used.

This accounts for 30% of your score. Consumers with the best credit scores use just 7% of their revolving credit lines, according to FICO, but anything below 30% is generally considered acceptable. If your score is low because of high balances, paying these down is one of the fastest ways to improve your score. .

Keep in mind that even if you pay your balance in full every month, your ratio of debt to credit will vary depending on when creditors report to the bureaus. People assume it's the same as the due date, but that's not necessarily the case.

Apply for new credit judiciously The average age of your credit lines counts for 15% of your credit score. The higher your average, the better your score. The average account for consumers with the best credit is 11 years old, versus just six months for consumers with poor credit.

Likewise, new credit inquiries, which account for 10% of your score, can temporarily lower your score. higher credit limits can potentially help your score, many experts recommend keeping Continued in page 16

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Realtor.com Optimistic On Texas An analysis of local market conditions suggests metros in Texas, Florida, and Pennsylvania have a busy buying season to look forward to, especially when it comes to first-time buyer activity.

Realtor.com released Thursday its list of the top markets for first-time homebuyers for the spring and summer seasons. To compile the list, analysts compared cities across five categories that have the biggest impact on buyers new to the market: list price affordability, time on market, employment rates, supply of inventory (and thus chances of competition), and—as the mantra goes—location, location, location.

Markets ranking on the 2014 list include Tampa-St. Petersburg-Clearwater, Orlando, and Jacksonville, Florida; Fort Worth-Arlington and Dallas, Texas; and Philadelphia and Pittsburgh, Pennsylvania.

Also included on this year’s list are Raleigh-DurhamChapel Hill, North Carolina, and Phoenix-Mesa, Arizona.

Steve Berkowitz, CEO of Realtor.com’s operator, Move, explained how these markets’ economies can expect to benefit from the crucial first-time buyer segment:

Of course, whether first-timers in those top markets decide to make their move this year remains to be seen, especially as the youngest among them continue to struggle with debt.

“First-time buyers have a widespread impact on the local housing markets. In transitioning from renters to owners, new buyers pay property taxes and other fees and taxes associated with homeownership that benefits local schools and services.”

In a profile of recent homebuyers, the National Association of Realtors found one-fifth of Millennials had to delay their search due to difficulties saving for a down payment; out of that group, more than half said student loans are the biggest obstacle.

Lucie Perez—Top Producer Lucie Perez in the Laredo office was named Top Producer for Arlington this last month. She says that her increase in production is the result of applying the concepts and strategies that Regional Manager John Donnelly has shared with her.

She takes the initiative and calls Realtors® to ask for their business and follows up with all of her pre-qualified borrowers each week instead of waiting for them to call. Last but certainly not least, she applauds her support staff made up of Gisela Mendoza, her assistant; and Veronica Allen, her processor.

~Howard Mackay

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Legacy Runs 5K in Firefly Run

Kevin Johnson and Pete Montesino Firefly Run to Benefit Children’s Hospital About 20 participants joined the group.

1st row -Amy Rohrback, Angie Cupps (Realtor with JP and Assoc., Pete Montesino, 2nd row Whitney Terito, Cameron Coles, Shawn Broussard, Marcus Rush, 3rd Row Kevin Johnson, Lindsay Huffhines, Jennifer Hamlin, Meagan Williamson, Tommy Tynes

Pete Montesino and Dustin Paine—Farmers Insurance Man

The way they “really are…”

Donald Reeves, Stephanie Bertling, Stephanie Johnston, Ronna Smith, Lori Redd, Wendy Cloud, Liz Hoyle, Shawn Broussard, Lauren Gonzalez, Diane Davalos, Matt Royal, Virginia Smith, Stefanie Wang all with Branch One

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More Pictures

Charles Mentesana and Tommy Tynes at Champions Real Estate School

Ronna Smith, Debbie Skipper, Chris Arnold enjoying a night out with friends from Coldwell Banker Apex at Top Golf

Laredo and St. Jude's Hospital

Carlos Garza in Laredo has a group of friends in the industry (Realtors, Insurance Agents, Builders, etc.). They decided a few weeks ago to donate money for the children at St. Jude’s Hospital.

They thought that they could all easily donate $20.00 each, and so they did. Then they decided to go around Laredo asking other people to do the same.

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In that one day they raised over $1,000.00 to help the children with cancer at St Jude’s Hospital. It was on the radio in Laredo. We are so proud of the Laredo group and Carlos Garza and his friends. This is such a nice story that shows what a few good people can do when they put their minds to it.

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Congratulations Linda Davidson!

Some of you may already be aware, but we are very proud to announce that Linda Davidson has been promoted to Vice President of Service First Mortgage. Linda has been with the company since 1998 has played a key role in Service First’s growth and success.

Shawn Broussard, President and CEO at Service Firsts says, “I can attest over the past 15 years Linda has earned her title through late hours, dedication, perseverance and her commitment to the whole Service First team.

Linda has a determination to succeed and has high expectations of her team and herself. Linda always leads from the front and by example.”

Co workers know that Linda would never ask someone to do a job she was not willing to do herself or help a team member to complete.

She is always the first person to volunteer to help and is always willing to share her knowledge and information.

Over the years she has represented Service First admirably on the national stage as well as worked hard to gain numerous accreditations. She continues to rank as one of the top FHA originators in the country and we are very proud of her.

Help us in congratulating her on a job well done.

Les Odom, Linda Davidson, Shawn Broussard “Leadership is not about titles, positions or flowcharts. It is about one life influencing another.” ― John C. Maxwell

1st row - Tanya DeNeve, Melanie Chaiken, Kristy Anderson, Norman Rehm, Evelyn David, Mark Potter, Tom Burris, Melissa Cusano 2nd row -Marshal Reinhardt, Joe Armstrong, Carolyn Cantrell, Brian Lueders

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Longview and Tyler Branches

This is the formal picture, But this is how they really are!

L to R 1st row: Jennifer Abercrombie, Rendi Maxie 2nd Row-Brandi Shoults, Griselda Aguirre, Kathy Glenn, Jessica Munoz, Jordan Johnson, Rob Wilson 3rd Row Tina Touchston, Tom Holyfield, Sharon Bradshaw, Joe Jackson,

L-R Nikki Hunt—Green Idea Floors, Sonia Vasquez CB Apex, Ronna Smith, Sandra Carrasco—CB Apex, Kimberly Love- CB Apex at Women’s Council of Realtors meeting at Primo’s

Joy Striegel won Best Attitude of the Month award because of her uplifting personality and excellent sense of humor. She’s always offering assistance and is always busy setting up loans, assisting others. Arlington loves her!

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Kevin Copher, Audrey Chinchilla, Pat Quick, and Josh Calahan at Arlington

Kevin Copher, Audrey Chinchilla, Pat Quick, and Josh Calahan at Arlington

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Are You Leaving Money on the Table?

Follow Up Builds Trust People do business with people they know and trust.

When you've only met someone briefly, it's easy to forget all about them. However, when you’ve made a couple more contacts with them, they begin to feel more secure about doing business with you. Every contact shouldn't be a sales pitch. Prospects appreciate valuable information they can use. Share your knowledge with them and they will think of you as the knowledgeable Banker.

You have probably all heard the saying, "leaving money on the table". That can mean several things but this isn't about being forgetful. It's about missing opportunities; not following up.

An article in the National Sales Executive Association quoted a statistics several years ago, that said only 2% of sales are made on the first contact, 3% on the second, 5% on the third, 10% on the fourth and 80% on the 5th to 12th contact. So, what does that mean? It means that if you aren't making consistent contact with prospective clients, you are leaving money on the table.

Some of you may not want to "bother" your prospects too often. But, consider this…

Follow Up Builds Consistency When you create and implement a plan for staying in contact with your clients and prospective clients, you need to be consistent. If you send them a newsletter on a monthly basis, be sure they can count on you to send them a newsletter on a monthly basis in a timely manner. You will be trusted more if your clients and prospective clients know they can count on you to be consistent.

Follow Up Puts You Ahead of Your Competition If we aren't following up, we can be sure that at least one of your competitors is. Even if you've successfully done business with someone before, you can still be forgotten when you don't follow up and stay top of mind.

Part of your reputation relies on how well you follow up. It will show people that either you are or aren't consistent and reliable. Follow up will help build trust and put you ahead of your competition.

How good is your follow up?

Mark Resmini

Suggestions on Improving Credit Con nued from page 10 accounts open even if you don't use them. This strategy makes sense to a point but shouldn't dictate your decision to close an account or keep it open. Many accounts are factored into your average account age for years after they're closed.

Stay away from credit repair scams If your credit is marred by a short sale, foreclosure or default, solicitations from outfits promising to clean up your credit may sound tempting. After all, these events will stay on your credit report and drag down your

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score for at least seven years. The bad news: There are no legitimate "easy" fixes for wiping the slate clean. There's nothing a so-called credit repair clinic can do that you can't do on your own for free.

The good news: As long as you keep revolving debt in check and pay your bills on time, you'll make steady progress toward improving your score. You'll be surprised by how much improvement you can see after just 24 months.

More 1st Timers in 2014

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More than four million first-time buyers want to enter the market, but they face some tough issues as market conditions aren’t exactly favorable to new buyers.

This conclusion came from the Zillow Housing Confidence Index (ZHCI), a new calculation released by Zillow and Pulsenomics.

The ZHCI is a measure of consumer sentiment; anything above 50 indicates a positive sentiment. The current national index is 63.7. Of the 20 metros surveyed, 11 had individual confidence levels above the national average.

In 19 of the 20 large metros surveyed, more than 5.0 percent indicated they wanted to buy a home in the next year. The report notes, "Among current renters, homeownership aspirations were particularly strong, with about 10 percent of all renters nationwide saying they would like to buy within the next 12 months."

A vast majority of respondents said they were "confident or somewhat confident" they could afford a home in 2014.

If every respondent who indicated they wanted to buy a home actually purchased one, first-time home sales would total more than 4.2 million for 2014, more than

double the roughly 2.1 million first-time buyers in 2013.

While this optimistic total from Zillow suggests interest is high, actually purchasing a home should prove to be a challenge in the upcoming year.

Market conditions are mixed: inventory, up 11 percent from a year ago, is still well below optimal levels, and has fallen year-over-year in eight of 20 metros measured by the ZHCI. Mortgage rates, once a record low 3.3 percent in 2013, have risen to 4.2 percent, according to the Zillow Mortgage Marketplace.

FHA Acceptable Sources of Heat What types of heat sources are okay for homes where the borrower is using FHA to finance the property?

Here’s the information and keep in mind that USDA (Rural Housing) uses FHA rules listed below as their heat source guidelines too.

General Guidelines  All habitable rooms must have a heat source  Certain areas of the country do not require a heat source if normal for the area (i.e., Hawaii, certain counties in Florida) Wood Stoves & Solar Systems  Acceptable with certification that they were installed according to manufacturer’s recommendations.  Must ALSO have a conventional heat source in all living areas.  Must also have a heat source to maintain 50 degrees F in rooms where plumbing is located.

(Example: electric baseboard heat in bathroom, SERVICE

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kitchen and basement/crawl space where plumbing pipes are located.)

Floor Heaters  Acceptable  If needs repairs or insufficient heat source for home, will require upgrade to conventional heat system.

Non-conventional Heating Systems  Space heaters or non-conventional heat sources must comply with local codes.  If does not comply, conventional heating system must be installed.

Propane Tanks  Must be located a safe distance from the home.  Must have ownership of propane tank UNLESS only leased tanks are available and normal for the area.  Propane furnaces located in crawl space or basement are not acceptable.

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SFMC Corporate Roster Name Corp Name Shawn Broussard Les Odom Shelby Seaman Mark Resmini Sandra Wiley Jim Berkley Kayla Eames Robert Bescos Dee Hoyle Laura Baima Megan Williamson Matthew Royal John Donnelly Kurt Gonzalez

Address

Phone

2105 Waterview Pkwy, Richardson, TX 75080 Title President - Regional Manager 3000 Chief of Operations HR Manager HR Director Compliance Manager Underwriting Manager Accounting - Vice President IT Manager Secondary Marketing - VP Post-Closing Manager Director of Mktg. & Bus. Dev.

Email

214-576-2900 Phone #

E-mail Address

214-576-2972 214-576-2903

sbroussard@servicefirstmtg.com lodom@servicefirstmtg.com

214-576-2971 214-576-2939 214-576-2973 214-576-2912 214-576-2937 214-576-2968

sseaman@servicefirstmtg.com mresmini@servicefirstmtg.com swiley@servicefirstmtg.com jberkley@servicefirstmtg.com keames@servicefirstmtg.com rbescos@servicefirstmtg.com

214-576-2904 214-576-2957

dhoyle@servicefirstmtg.com lbaima@servicefirstmtg.com

214-576-2948 214-576-2967 817-330-0548 972-985-0000

mwilliamson@servicefirstmtg.com mroyal@servicefirstmtg.com jdonnelly@servicefirstmtg.com kgonzalez@servicefirstmtg.com

817-330-0545

scretsinger@servicefirstmtg.com

Sonna Cretsinger

Regional Manager 5300 Regional Vice President 8500 Regional Manager 7000 Reg Oper. Mgr. 7000 & 8500

Debbie Russo Jana Bishop

Reg.Oper.Mgr.Metro & Longview Closing Mgr for Luna & Luna

214-576-2975 214-576-2929

drusso@servicefirstmtg.com jbishop@servicefirstmtg.com

Bryan Stuckmeyer

Closing Mgr. for McGlinchey

214-576-2950

bryan@servicefirstmtg.com

Col

Hint for Success

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Selling Personal Property

If you are working with clients who need to sell personal property (car, boat, motorcycle, furniture, jewelry, etc.) and they are using part or all of the money towards their down payment, closing costs or cash reserves, there needs to be a “paper trail”.

Proceeds from the sale of personal assets are acceptable if the individual purchasing the asset is not part of:  The transaction to the sale of the asset  The mortgage financing transaction Documentation Requirements:

 Proof that the borrower owns the asset.  Proof of value of the asset, as determined

by an independent and reputable source.  Proof of transfer of ownership of the asset, by either a bill of sale or a statement from the purchaser.

The borrower’s receipt of the sale proceeds from documents such as  deposit slips,  bank statements, or  copies of the purchaser’s (buyer of the asset) canceled check.

Depending how much money is needed, the lender may accept alternatives to this required documentation, especially when the proceeds of the sale represent a minor percentage of the borrower’s overall money needed to close.

Fannie/FHA/VA/USDA Maximum Seller Contribution Chart FNMA Owner Occupied LTV/CLTV 90.01 or greater 75.01 to 90.00 75.00 or less

3% 6% 9%

Non-Owner Occupied FNMA Homepath

2% Maximum all LTV’s Follow standard maximum’s with the exception of LTV’s over 90% allow up to 6% concessions

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FHA

VA

USDA

6% Maximum all loans

4% Closing cost & points

No Seller Contribution Limit*

Plus up to 4% sales concession

Closing cost can also be financed up to 100% of appraised value.

N/A

Total: 8% N/A

N/A

N/A

N/A

N/A

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Focus on the Possibilities Continued from page 1 Another big piece of my growth through the years has been to address my weaknesses. Let’s face it we all have them. But great leaders know their weaknesses and finds ways to overcome them. I’m not saying you dwell on your weaknesses as that will only drag you down. But you acknowledge them and you know what you need to do to work on them and improve them. If nothing else, you know that you need people around you who are strong in those areas. Great leaders find people that complement them and round out the team so that the team is strong and has limited weaknesses.

At the end of the day if you think you cannot overcome the obstacles before you then you won’t. If you focus on

the problems and not the solution, you will never overcome those problems. But if you focus on the possibilities (solutions) and maintain a positive outlook, you will overcome the problems facing you. If we all focus on the solutions this will be our best year ever and we will stand out for the right reasons. FOCUS ON THE POSSIBILITIES AND THE SOLUTIONS. Keep doing the things to get us to where we need to be. Address your weaknesses and work to improve them, you can overcome them. Be empowered and remember you are a leader and you do impact others. Everything you do and say matters and will have an effect on the organization. BE THE SOLUTION NOT THE PROBLEM. FOCUS ON THE POSSIBILITES.

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FHA Questions Interest Charges Much to the dismay of many home sellers and refinancers, FHA has been charging interest on FHA loans even after the debt was completely paid off. FHA has always demanded that if your loan was FHA insured and you paid it off before maturity, at closing you’d be expected to pay up to a full month’s interest, no matter what day of the month you actually closed.

Even if the loan closed on April 2, the borrower would be charged interest through the end of April adding hundreds of dollars to the cost of the transaction. But change is coming. Thanks to a regulatory mandate from the Consumer Financial Protection Bureau, FHA has agreed to end its controversial full-month interest policy, but only for future borrowers. FHA has until next Jan. 21 to make the switch, so sellers and refinancers who currently have FHA-insured mortgages are cut out of the deal. Many will still get hit with extra interest charges.

Financial system overhaul legislation passed by Congress in 2010 — the Dodd-Frank Wall Street Reform and Consumer Protection Act is changing the status quo. The law empowered the new CFPB to write regulations, banning prepayment penalties. Under the rule the bureau adopted, FHA’s full-month interest policy amounted to a penalty — essentially a fine on borrowers who couldn’t or didn’t pay off at the end of the month.

closing dates, many sellers were unable to control the exact date their FHA loans were paid off — leading to hefty interest penalties under the CFPB’s definition.

Tucked away in a Federal Register notice announcing its plan to change policy, FHA finally came clean on whether the tiny interest break that borrowers received was ever worth the extra interest amounts they could face if they prepaid the loan. New borrowers next year “can expect to pay a slightly higher rate,” the agency said, “but they would also receive full benefit from lower interest costs [at closing] when they prepay . . . in most cases more than offsetting the cost of the higher rate.”

So in fact under the old practice, FHA’s customers paid more than they should. And presumably some of the estimated 7.8 million existing FHA mortgage borrowers who are not covered by the forthcoming policy change will continue to be vulnerable to paying more than they should.

The only way around it: If you are a seller or refinancer paying off an FHA loan, insist that your closing is at the end of the month, not the beginning.

Since home buyers rather than sellers typically schedule

Second Home Requirements People buy second homes for many reasons and the home does not have to be in a resort/vacation area in order to qualify. Simply wanting to be closer to family & friends is perfectly okay. And, yes, your borrowers can obtain a conventional mortgage for a second home—but there are seven key things you and your clients need to know.



The borr o w e r m u s t have exclusive control over the property.



Must not be rental property or a time-share arrangement.



Cannot be subject to any agreements that give a management firm control over the occupancy of the property.

Second Home Requirements 

Must be located a reasonable distance away from the borrower’s principal residence.



Must be occupied by the borrower for some portion of the year.



Restricted to one-unit dwellings.



Must be suitable for year-round occupancy.

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