The Reverse Review January 2013 by The Reverse Review

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this issue

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INSIDE

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spotlight

ON COUNSELING

THE INDUSTRY BRACES FOR CHANGE IN THE WAKE OF THE FHA AUDIT PG. 32 DEMAND SPIKES FOR HECM SECURITIES ON WALL STREET PG. 37 + DARREN STUMBERGER SITS DOWN IN OUR HOT SEAT PG. 14

THE

REVERSE JANUARY 2013

review

MOUNTING ISSUES IN THE APPRAISAL SECTOR COULD { HOWSPELL { TROUBLE FOR REVERSE MORTGAGE LENDERS

The ReveRse Review January 2013

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info@reversevision.com Raleigh, NC 27607-7006

CLIENT FOCUS

INTEGRITY

RESPECT FOR EACH INDIVIDUAL

TEAMWORK

INNOVATION

RESPONSIBLE CITIZENSHIP

At our core, each of us finds what truly matters. At Urban Financial Group, our path to success boils down to six unwavering principles: Client Focus, Integrity, Teamwork, Respect for Each Individual, Innovation and Responsible Citizenship. These values are woven into the DNA of our entire staff and embedded in our culture. These six principles guide our behavior and set the bar higher for each of us every day. So in a world where people and businesses are faced with and tempted by shortcuts, we at Urban resolve to take the right path – every time. It’s this determination to do the right thing that has made us a leader in Reverse Mortgage lending. When you let your values guide you, the right path becomes clear. Goals are reached. Business grows. Find out how we can partner with you. Email us today.

info@reverseit.com

* According to RMI measuring number of endorsed wholesale units January – December 2011

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The ReveRse Review January 2013

From the Publisher Meet the Team Senior Publisher REZA JAHANGIRI

Publisher

ERIK RICHARD

Editor-in-Chief JESSICA GUERIN

Creative Director TRACI KNIGHT

Copy Editor

KERSTEN WEHDE

A NOTE FROM REZA JA HANGIRI

Marketing Director ALYCIA COLACION

Advertising Sales Rep. BRIANNA CONLON Printer The Ovid Bell Press Advertising Information phone : 949.269.1600 email : brie@reversereview.com Subscriptions email : information@reversereview.com Editorial Content email : jessica@reversereview.com

Senior Publisher { Reza JahangiRi } Want to talk to Reza? Reach him at reza@reversereview.com.

T AY EC ST ONN C

Feedback

© 2012 Reverse Publishing, LLC All rights reserved. Reproductions or distribution of any materials obtained in the publication without written permission is expressly prohibited. The views, claims and opinions expressed in article and advertisement herein are not necessarily those of The Reverse Review, its employees, agents or directors. This publication and any references to products or services are provided “as is” without any expressed or implied warranty or term of any kind. While effort is made to ensure accuracy in the content of the information presented herein, Reverse Publishing, LLC is not responsible for any errors, misprints, or misinformation. Any legal information contained herein is not to be construed as legal advice and is provided for entertainment or educational purposes only. Postmaster : Please send address changes to The Reverse Review, 3800 West Chapman Ave., Orange, CA 92868

Feedback is very important to us here at The Reverse Review. Send us your thoughts on past articles or something that is on your mind and we will publish it in this section. information@reversereview.com

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Table of Contents

tRR 1.13

14 | HOT SEAT Darren Stumberger

26 | TECH Preventing a Cyberattack

Group

16 | ORIGINATING Maximizing Web Lead Conversion

IN THIS ISSUE... 32 JIM MILANO

alexanDeR j. chauDhRy

28 | UNDERWRITING How’s the Weather?

chRistopheR Russow

18 | ORIGINATING Please Prove It to Me

Ralph Rosynek

31 | APPRAISING Compassion Is Key

08 | MOVERS & SHAKERS

09 | INDUSTRY UPDATE

kenneth l. kanaDy

35 RYAN LAROSE

RogeR Beane

shannon hicks

20 | ORIGINATING Misperception Versus Fact

37 | SECONDARY MARKET Supply and Demand MaRk acchione

ReveRse MoRtgage Daily jaMes e. veale

11 | ROUNDUP

38 | SPOTLIGHT Counseling Concerns

24 | MARKETING

50 MEHRAN ARAM

The Power of Testimonials

13 | NRMLA NEWS

kevin DelgauDio

anthony lopes Matt MaRovich jeReMy shaDRick

MaRty Bell

FEATURE

44 | THE APPRAISAL PROBLEM

Want the online version? reversereview.com/magazine

eRik RichaRD jessica gueRin

JANUARY 2013

COVER “In the appraisal world, it’s no secret that the industry is facing a drastic decline in its workforce, and as the dwindle, HECM lenders are feeling the pressure.

A shrinking appraisal industry struggles to meet the needs of HECM lenders.

PG. 32

COUNSELING

PG. 37 PG. 14

INSIDE this issue

THE

REVERSE review

MOUNTING ISSUES IN THE APPRAISAL SECTOR COULD { HOWSPELL { TROUBLE FOR REVERSE MORTGAGE LENDERS

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The ReveRse Review January 2013

Contributors MA RT Y B E L L

Marty Bell

Darren Stumberger

13 | NRMLA NEWS Marty Bell is NRMLA’s senior vice president of communications and marketing. This is Bell’s professional Act III after careers in books, journalism and the Broadway theater. Bell is the author of two novels his writing has appeared in publications including Playboy and New York magazine. Bell wrote and produced the awardThe Boys of Summer and produced 15 Broadway shows (including Ragtime, Fosse and Dirty Rotten Scoundrels) that won 27 Tony Awards.

D ARREN S TU MB E R GE R

CHRISTOPHER RUSSOW

14 | HOT SEAT Darren Stumberger, managing director at Knight Capital Group, heads Agency MBS trading and is responsible for HMBS/ HREMIC trading, distribution and risk management. Prior to Knight, Stumberger held

16 | MAXIMIZING WEB LEAD CONVERSION Christopher Russow is vice president of sales for Urban Financial Group and is involved in retail sales management, online marketing and lead generation. He previously held management positions at EquiPoint Financial and One Reverse Mortgage, and also worked in wholesale for Financial Freedom. Russow has a B.S. in business/economics from Cal Poly San Luis Obispo and is currently working toward his MBA at the University of California San Diego.

positions at Goldman Sachs, Morgan Stanley, Merrill Lynch, Standard & Poor’s and KBC Group NV. dstumberger@knight.com

Christopher Russow

Kenneth L. Kanady

Shannon Hicks

James E. Veale

K ENNE T H L . K AN AD Y

SH AN N ON HI C KS

JAME S E. V EALE

18 | PLEASE PROVE IT TO ME Kenneth L. Kanady is the director of Learning & Development for Wendover Consulting, Inc. Kanady created and managed the Wells Fargo Home Mortgage National Loan

18 | PLEASE PROVE IT TO ME Shannon Hicks is the vice president of product development at Reverse Focus (formerly Reverse Fortunes), a training and technology company for the reverse mortgage industry. Hicks was instrumental in the development

20 | MISPERCEPTION VERSUS FACT James E. Veale, CPA, MBT, has been originating reverse mortgages since early 2005. In 2007, Veale joined Security One Lending as a senior vice president shortly after it started its reverse mortgage operations. Veale has more than 40 years of experience in the tax industry and has been a California real estate broker for two decades. He and his wife, Marilu, operate the S1L branch in Lakewood, California.

He is the author of Reverse Credibility, a text on credibilitybased engagements with seniors (Jawbone Publishing, 2009), and numerous articles on reverse sales professionalism and development. Kanady serves as a member of NRMLA’s

Alexander J. Chaudhry

for the industry. He also hosts the nation’s only weekly podcast “Reverse Focus Weekly.”

Committee.

K E V I N DE L G A UD I O

Kevin DelGaudio

originators and for Reverse

24 | THE POWER OF TESTIMONIALS Kevin DelGaudio is marketing director at the Senior Reverse Network, division of Jet Direct Mortgage, based in Long Island, New York. He is a graduate of Long Island University with a degree in marketing. DelGaudio started his mortgage career in 2002 and is still an active MLO, licensed in New York and New Jersey. DelGaudio is working

ALE XA NDER J. C HAU D H RY 26 | PREVENTING A CYBERATTACK Alexander J. Chaudhry is general counsel of FNC Title Services. Chaudhry works on areas of real estate law that impact title insurance agencies with a responsible for corporate and transactional matters, licensing, and regulatory and litigation concerns. He recently worked with insurance enforcement

guide to reverse mortgages. facing the title insurance industry. Ralph Rosynek

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RALP H R OSYNE K 28 | HOW’S THE WEATHER? Ralph Rosynek is the vice president for National Correspondent Production at Reverse Mortgage Solutions. RMS is a premier provider of reverse mortgage servicing, a Ginnie Mae seller/servicer and offers mortgage banking support to the reverse mortgage industry. Rosynek is currently a member of the NRMLA board, co-chair of the Professional Development Committee and holds HUD HECM Direct Endorsement credentials. rrosynek@rmsnav.com 708.774.1092

Contributors

Dennis Swit

Roger Beane

DENNI S S WI T

R OGE R BE AN E

JI M MI L AN O

29 | INSURANCE TIP Dennis Swit has more than 20 years of insurance industry experience and is currently managing partner of Loan Protector Insurance Services in Cleveland, Ohio. Loan Protector is a leading national provider of lender-placed insurance and insurance tracking services for both the forward and reverse mortgage industries. Swit is responsible for overseeing the company’s growth and client retention strategy and is actively involved in new business development, insurance tracking needs, analysis and program design.

31 | COMPASSION IS KEY Roger Beane is the founder and CEO of Orange County, California-based LRES, a national provider of commercial and residential valuations and asset management for the mortgage, banking, credit union and real estate industries. He leads a dedicated team of professionals committed to bringing real-world solutions

32 | THE WAITING IS THE HARDEST PART Jim Milano is a partner with

LRES client organizations.

Sidman Kider. Milano’s practice focuses on regulatory services industry, particularly with respect to reverse mortgage issues. Milano is nationally recognized as one of the leading lawyers in the area of reverse mortgage law, and is a frequent speaker on topics of interest to industry members at various trade association conferences and webinars.

Jim Milano

Ryan LaRose

Mark Acchione

RYA N L A R OS E

MARK AC C H I ON E

AN TH ON Y LO PES

35 | AT YOUR SERVICE Ryan LaRose is president and COO of Celink, an independent reverse mortgage subservicer. LaRose has more than 12 years of servicing experience and has worked exclusively in reverse mortgage servicing since 2005. In addition, he is an active member of the NRMLA servicing and technology committees. celink.com 517.321.5491

37 | SUPPLY AND DEMAND Mark Acchione is managing director of capital markets at One Reverse Mortgage, the nation’s largest retail-only provider of reverse mortgages. Acchione is responsible for capital market operations located in Detroit, Michigan.

38 | A COUNSELOR’S PERSPECTIVE Anthony Lopes is the housing director of Cambridge Credit Counseling Corp., and bankruptcy counseling agency. Lopes is an AFCPEa NeighborWorks Americacounselor, with more than 12 years of experience in the Lopes has a B.A. in criminal justice and sociology from William Patterson University in New Jersey.

Anthony Lopes

Matt Marovich

Jeremy Shadrick

Erik Richard

MAT T MA R O V I CH

JE R E MY S HAD R IC K

E R IK R I CH AR D

40 | SQUASHING THE MYTHS Matt Marovich is a branch manager for Genworth Financial Home Equity Access and one of the top reverse mortgage consultants in the nation. He has been in the

43 | THE COUNSELING FUNDING FRENZY Jeremy Shadrick is the president and founder of

47 | THE APPRAISAL PROBLEM Erik Richard is the CEO of Landmark Network, an appraisal management and compliance company serving the reverse mortgage industry. Richard is also co-publisher of The Reverse Review. Prior to founding Landmark, Richard accumulated more than 10 years of industry experience within the lender services and real estate valuation sectors. Richard most recently served as CFO for One Reverse Mortgage.

years and has published more than 20 books and articles that range in topic from social media, environmental sustainability, global poverty, entrepreneurship and management education. Marovich earned a master’s degree from Rutgers University.

approved housing counseling agency based in Tulsa, Oklahoma. QuickCert offers HECM counseling exclusively and assists more than 1,000 senior clients a month. Previously, Shadrick worked for Pricewaterhouse Coopers, CountryWide and Reverse It! He is a graduate of the University of Tennessee, where he received a full football scholarship, and attended graduate school at the University of South Florida.

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The ReveRse Review January 2013

Contributors

Jessica Guerin

Mehran Aram

J E S S I CA G UER I N

ME H RA N ARA M

47 | THE APPRAISAL PROBLEM Jessica Guerin is the editor-inchief of The Reverse Review. She has worked on the editorial teams of Chicago Home & Garden, Chicago magazine and Time Out Chicago. Prior to joining the magazine, Guerin managed the marketing efforts

54 | GIVE AND YOU SHALL RECEIVE Mehran Aram is president and CEO of The Aramco Group. A 1984 graduate of the University of San Diego School of Business, he founded Aramco

in the Chicago Board of Trade. She has a master’s degree in magazine publishing from Northwestern University and a B.S. in journalism from Boston University.

years in the industry. Aram is Professional with more than 20 years of industry experience and serves as a mortgage analyst for several San Diego radio stations. Want to write for this magazine? Email jessica@reversereview.com for more information.

Movers & Shakers READ ABOUT THE LATEST DEVELOPMENTS in companies across the reverse space.

H AV E A C O M PA N Y U P D AT E Y O U WOULD LIK E T O S E E P U B L I S H E D?

Landmark Network Acquires Hamilton Appraisal Management Services Los Angeles-based AMC Landmark Network has acquired Hamilton Appraisal Management Services (HAMS). Launched in 2010, New Jersey-based HAMS entered the space on the heels of HVCC and experienced tremendous growth. Under the new deal, Landmark will retain HAMS’

TVC Capital Purchases Majority Stake in ReverseVision Inc. TVC Capital has purchased a majority stake in loan origination software provider ReverseVision Inc. The deal includes an equivalent equity purchase in the interrelated company Reverse Documents Inc. John Button has been appointed president and founder Thomas Martignoni will continue to work with both companies.

Texas Celebrates 50,000 Reverse Mortgage Loans The 50,000th reverse mortgage was issued this November in Texas. “Over the next decade, as more Texans are forced to deal 8

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EMAIL IT TO JESSICA@REVERSEREVIEW.COM.

increases and expanding health care costs, reverse mortgages will continue to take planning,” said Scott Norman, VP of Sente Mortgage’s HECM division.

Moneyhouse Launches U.S. Operations making its move stateside. The company Florida, on January 15 and was just licensed in Texas. The company is also planning to launch wholesale operations and is currently collecting applications from lenders in Texas, Oklahoma and Florida.

Mortgage Cadence Promotes Seth Hooper to Director of Reverse Lending Reverse mortgage technology provider Mortgage Cadence announced the promotion of Seth Hooper to director of reverse lending. Hooper joined the Denverbased company in 2010 after seven years in the industry, focusing on reverse lending, mortgage production and document services.

2012 Marks a Year of Growth for Open Mortgage Texas-based Open Mortgage experienced unprecedented growth in 2012, opening members Joe Morris (SVP) and Diane Creasy (director of marketing) on board.

Premier Reverse Closings Approaches Milestone Premier Reverse Closings (PRC), an industry leader in reverse mortgage title and settlement, will close its 150,000th reverse mortgage transaction this month. The Rocklin, California-based company works with every major lender in the reverse mortgage industry and attributes its success to the expertise and dedication of each member of its 60-person team.

Celink Wins Integrity Award from Regional BBB Reverse mortgage servicer Celink was one of three companies that received the annual Integrity Award from the Better Business Bureau of Western Michigan. Ryan LaRose, Celink president and COO, said the award was a validation of the Celink Code of Ethics, which was LaRose.

Industry Update

January Edition

Brought to you by:

AN UPDATE OF THIS PAST MONTH’S BREAKING NEWS

NEWS DIRECT TO YOU: WANT EVEN MORE UP-TO-THE-MINUTE NEWS? Visit reversemortgagedaily.com.

headlining news 1.FHA AUDIT SHOWS $16

3.HUD SECRETARY ASKS

CONGRESS FOR AUTHORITY TO MANAGE HECM PROGRAM TO PREVENT SWEEPING CHANGES

5.FHA EXTENDS HECM LOAN LIMITS THROUGH 2013

BILLION DEFICIT, HECM PORTFOLIO NEGATIVE $2.8 BILLION

// December 7, 2012

6.BLOOMBERG NEWS: REVERSE MORTGAGE INVESTOR DEMAND GROWS

// November 16, 2012

2.THE NEW YORK TIMES: FHA

RELYING ON NEWEST LOANS TO DRIVE FINANCIAL RECOVERY New York

Times

// December 6, 2012

4.REVERSE MORTGAGE VOLUME UP 19% IN NOVEMBER, EAST COAST LEADS CHARGE

// December 10, 2012

7.GINNIE MAE REPORTS

CONTINUED PROFITS, BUT EARNINGS FALL 48%

// December 10, 2012 // November 15, 2012 // December 4, 2012 REVERSEREVIEW.COM

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The ReveRse Review January 2013

To Move Forward, Work In Reverse Join a winning team in a growing industry

To learn more about becoming a reverse mortgage advisor, scan the image below or visit

www.genworth.com

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Roundup HERE’S A LOOK DEMOGRAPHICS

AT THE LATEST

N E W S A N D S TAT S

Top HECM Cities

AFFECTING THE MARKET.

MARKET TRENDS

Home Prices Up

THE SENIOR CONSENSUS

Top Retirement Cities

1. albuquerque, n.M. 2. portland, ore. 3. louisville, ky. 4. tucson, ariz. 5. austin, tex.

6. winston-salem, n.c. 7. st. george, utah 8. traverse city, Mich. 9. coeur d’alene, ida. 10. st. augustine, Fla.

New HavenMilford, Conn. BridgeportStamford-Norwalk, Conn. Cambridge-NewtonFramingham, Mass.

RETIREMENT RISK

Financial Instability on the Horizon

53%

the number of american households that will face a decline in their standard of living once they retire

Providence-New Bedford-Fall River, R.I.-Mass. Chicago-NapervilleJoliet, Ill.

Number HERE ARE SOME INTERESTING FACTS

American Society on Aging

An unprecedented number OF AGING AMERICANS WILL HAVE A MAJOR IMPACT ON

WHAT IT MEANS TO BE A SENIOR CITIZEN

IN THIS COUNTRY. ACCORDING TO A PANEL OF EXPERTS AT AN APRIL CONFERENCE ON AGING IN AMERICA, A “NEW MODEL OF LIFE IS EMERGING” IN WHICH SENIORS WILL SEEK TO REINVENT THEMSELVES AND LIVE ACTIVE, INDEPENDENT LIVES. HERE’S A LOOK AT HOW DRASTICALLY THE SENIOR DEMOGRAPHIC HAS CHANGED:

1940

Life expectancy was 63.5 years About 9 million Americans received Social Security benefits The ratio of workers to beneficiaries was 159 to 1

2010

Life expectancy was 78.3 years Nearly 39 million Americans received Social Security benefits The ratio of workers to retirees was 2.9 to 1

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The ReveRse Review January 2013

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This month at reversemortgage.org, we had 13,246 unique

ON BOARD: The misinformation spreads virally. A consumer advocate hears a complaint from a disgruntled reverse mortgage borrower. The consumer advocate is interviewed by a CFPB staffer for a reverse mortgage report and repeats the complaint, which has now become an anecdote. The CFPB, trying to deliver a report without compiling any data, draws conclusions from the anecdote. A New York Times reporter picks up the conclusion based on the anecdote and reports it as fact. (After all, it came from the CFPB!) Reporters in Jacksonville and Houston repeat the conclusion. (After all, it was in The New York Times!) And then local television stations in Jacksonville and Houston quote the local paper. It’s like the old game of telephone, except a valuable product’s reputation is on the line, and we all feel lousy. We live in a time of shrinking news staffs. Original source research, once a staple of papers, has been replaced by Googling another newspaper’s story on your iPhone. Data compilation is something you let other places spring for.

How do we prevent anecdotal evidence from

Well, we can take the Stephanopoulos/Carville War Room approach and correct every bad story, as we have done with the support of Rasky Baerlein Strategic Relations. (In the past two weeks alone, we responded to stories in the Chicago Tribune, Florida Times Union and the Houston Chronicle.) We can try to divert attention from the criticism with alternative stories, the preferred tool of this year’s political campaigns. We can ignore the bad press and talk directly to consumers, which means substantial advertising expenditures. Or we can tackle the issues that continue to show up in the

FOLLOW-UP TO THE FHA INSURANCE FUND AUDIT

BROUGHT TO YOU BY MARTY BELL : NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION

HUD’s response to the 2012 audit of the FHA Mortgage Mutual later developments before you read this. The audit showed a gap of $2.8 billion, largely due to pre-Saver, pre-MIP increase, pre-housing recovery books of business, but HUD has made it clear policy actions will be taken in order to protect the future of the fund. Even prior to the audit, Deputy Assistant Secretary Charles Coulter made it clear at NRMLA’s Annual Meeting in San Antonio that full-draw loans to other products. Ever since Coulter’s presentation, and immediately following the audit’s release, NRMLA’s board of directors has been meeting frequently to discuss proposals to HUD that might adjust the market while still protecting the existence of the product.

IN COMMITTEES: CFPB MANUAL ADDRESSES RISK AND COMPLIANCE COMMITTEE CONCERNS

etc.) and try to eliminate them so they can no longer be criticized. There are arguments to be made for each approach—and maybe for all three approaches. To help us choose which road (or roads) to take, NRMLA has formed a Public Relations Committee comprising some of the best marketing minds in the industry. Chaired by Jean Noble of Urban Financial, it includes Teague McGrath of AAG, Mary Smith of Genworth, Mary Katherine Quasarano of Celink, Rick Peters of Security One and Dave Hickey of Nationstar. As of this writing, the committee has convened just a few times and is beginning to dig its way through the various options. We’ll continue to discuss its progress in future issues.

NEW MEMBERS

NEW CRMPs

Impac Mortgage Irvine, CA

Lance R. Canada, TowneBank Mortgage,

Lexington Investment Mortgage

Raleigh, NC

Company, LLC, Lexington, KY

Mace Kochenderfer, Stearns Lending,

Senior Savings Reverse Inc.,

Inc., Albuquerque, NM

Lake Forest, CA

Colleen Moore, Golden Equity

Coastway Community Bank, Cranston, RI

Mortgage, San Diego, CA REVERSEREVIEW.COM

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NEWS FROM NRMLA

NRMLA News

The ReveRse Review January 2013

THE HOT SEAT

things you need to know or may have been wondering JANUARY 2013

the hot seat From his former career in baseball to his thoughts about the reverse mortgage market, we get the personal and professional facts from Darren Stumberger, managing director at Knight Capital Group, in our monthly edition of The Hot Seat.

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darren KNIGHT C APITAL GROUP PERSONAL >

You can’t always be... Yes, you can!

Ten years from now I’d better be coaching kids’ baseball and football.

Nobody knows that I skipped kindergarten.

If I had three wishes they would be that all children could be happy, healthy and given a chance to succeed. 1988 used Ford Escort GT.

> >

If I could meet anyone past or present it would be Ronald Reagan.

My favorite movie is The Karate Kid.

My favorite website is drudgereport.com.

When it comes to TV, I never miss a Miami Hurricane football game.

I’ll never forget the home run I hit against Florida State in the 1993 NCAA Championships. as a busboy in a French bistro.

> >

My parents taught me how to drive when I was 13.

My iPod go-to is anything produced between 1982 and 1987.

I never can sleep in on the weekends.

I always have trouble getting out of bed during the week.

The most memorable moment in my life was being named All-American and getting drafted by the Cubs and Indians in 1990 and 1994.

The worst purchase I’ve ever made was a minivan.

The best purchase I’ve ever made was a minivan.

My favorite book is Hamlet.

The craziest thing I’ve ever done was put hot sauce in my oatmeal.

PROFESSIONAL >

The biggest challenge in the reverse mortgage industry is the prospect of lower volumes and lingering accounting issues.

my favorite movie is the karate kid.

The greatest setback for our industry was become 70 percent-plus of originations.

THE MOST MEMORABLE MOMENT IN MY LIFE WAS BEING NAMED ALL-AMERICAN AND GETTING DRAFTED BY THE CUBS AND INDIANS IN 1990 AND 1994.

Ten years from now the reverse mortgage industry will be

THE WORST PURCHASE I’VE EVER MADE WAS A MINIVAN.

cylinders. >

Before I entered the reverse mortgage industry I was trading forward whole loans, working as a securitization banker.

THE BEST PURCHASE I’VE EVER MADE WAS A MINIVAN. REVERSEREVIEW.COM

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The ReveRse Review January 2013

CONNECT

ORIGINATING Maximizing Web Lead Conversion C H RIS T O P H E R R US S OW

GOING TO THE SOURCE 16

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THERE’S NO SUCH THING AS AN “EXCLUSIVE” WEB LEAD.

The most important metric when dealing with Web leads is how long it took between receiving that lead and making contact with your client. The shorter this time is, the more likely you are to close that client’s loan, period.

ORIGINATING

oRiginating

MaRketing

CONTACT IS KEY! tech unDeRwRiting appRaising

THE FIRST THING YOU NEED TO DO IS MAKE SURE THEY KNOW WHO YOU ARE AND WHO YOU WORK FOR. ONCE YOU’VE ESTABLISHED AN IDENTITY WITH THE CLIENT, SPEND TIME REALLY UNDERSTANDING WHY THEY ARE LOOKING INTO THE REVERSE MORTGAGE PROGRAM. WHEN THEY SAY, “I WANT TO GET RID OF MY MONTHLY MORTGAGE PAYMENT,” DON’T LET THE CONVERSATION STOP THERE. IT IS IMPORTANT TO UNDERSTAND WHY THEY WANT TO GET RID OF THAT PAYMENT.

legal seRvicing seconDaRy MaRket

DIFFERENTIATE YOURSELF!

spotlight

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The ReveRse Review January 2013

ORIGINATING

Please Prove It to Me KENN E T H L . KA NA DY A N D SH AN N O N H I C KS

we suggest lenders prepare to respond to the following questions in order to validate the work of their originators

10.

servicing professionals, too): 11. 8.

Please PROVE IT to me! 18

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12.

ORIGINATING

oRiginating

here are two contemporary illustrations of how a balance can be struck between the tactical and strategic aspects of training: 1.

MaRketing

THE REVERSE BASICS PROGRAM tech

THE CRMP PROGRAM

unDeRwRiting appRaising

legal

EXPERIENCE THE DIFFERENCE!

seRvicing

MIS can handle your title, settlement and valuation needs.

Valuations

Title

seconDaRy MaRket

Mortgage Information Services expertly handles title insurance, loan settlement services and valuations nationwide under one roof! MIS offers a unique, streamlined approach to compliment our hands-on customer service.

spotlight

Settlement

mtginfo.com 800.877.7557 ext 1222 REVERSEREVIEW.COM

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The ReveRse Review January 2013

ORIGINATING

Misperception Versus Fact JA ME S E . VE AL E

Want to see more stories like this? Visit reversereview.com.

“The age of HECM borrowers has years.” “Thousands of seniors have been helped by HECMs.” “Case number assignments have been doing so well in the last few months, endorsements are bound to get better” “About half of all HECMs have terminated by now.” “The average lifespan of a HECM is

IS THE AGE OF HECM BORROWERS REALLY “PLUMMETING”?

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Reverse Mortgage

ORIGINATING

1998 1999 2000 2001 2002 2004 2005 2006

2009 2010 2011

appRaising

2012

unDeRwRiting

2007 2008

0.20 0.10 0.90 0.50 0.80 0.10 0.00 0.20 0.40 0.70 0.50 0.40 0.80 0.00 0.50 0.00 0.30 0.40 0.20 0.00 0.70 0.30

tech

2003

1.50 0.50 0.70 0.20 0.50 0.70 0.10 0.40 0.60 1.00 1.70 1.70 1.30 0.80 1.20 0.90 0.90 1.30 1.20

CHANGE IN AGE BY FISCAL YEAR

MaRketing

1993 1994 1995 1996 1997

76.7 76.5 76.6 75.7 75.2 76.0 75.9 75.9 75.7 75.3 76.0 75.5 75.1 74.3 74.3 73.8 73.8 73.5 73.1 72.9 72.9 72.2 71.9

CHANGE IN AGE FROM FOUR YEARS BEFORE

oRiginating

1990 1991 1992

AVERAGE AGE OF YOUNGEST BORROWER

AVERAGE AGE

FISCAL YEAR

legal seRvicing seconDaRy MaRket spotlight

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The ReveRse Review January 2013

Put Your Career on Track ORIGINATING

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â&#x20AC;&#x153;At Security One Lending our Success is Measured by your Success.â&#x20AC;?

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ORIGINATING

HAS THE HECM PROGRAM HELPED JUST THOUSANDS OF SENIORS?

oRiginating

hundreds of thousands MaRketing tech

DO CURRENT CASE NUMBER ASSIGNMENTS MEAN INCREASED ENDORSEMENT NUMBERS THIS YEAR?

unDeRwRiting

HAVE MORE THAN 50 PERCENT OF ALL HECMS BEEN TERMINATED?

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IS THE AVERAGE LIFESPAN OF A HECM JUST FIVE YEARS? seRvicing seconDaRy MaRket

CONCLUSION

spotlight

So why does everyone seem to be promoting the idea that the average age of the youngest borrower has plummeted in the past four years?... There is no question that the average age of the youngest borrower has been dropping,

any four-year period just has no basis in fact. REVERSEREVIEW.COM

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The ReveRse Review January 2013

PROMOTE

MARKETING

WHO DO YOU ASK FOR A TESTIMONIAL?

The Power of Testimonials K EV I N D E L GA U D I O

“Jim was very polite and patient with us since we really didn’t know much about how a reverse mortgage worked. After almost two hours of explanation, and then a lot of questions and answers from my husband, Jim told us that he really didn’t think that a reverse mortgage was in our best interest, based on our current

told me his product was not for me. Jim is one of the most honest salespeople I have ever met and I cannot say enough about this man’s integrity.”

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MARKETING

oRiginating MaRketing

unDeRwRiting

WHAT SHOULD BE WRITTEN IN THE TESTIMONIAL?

tech

WHAT OTHER PEOPLE SAY ABOUT YOU IS INFINITELY MORE POWERFUL AND BELIEVABLE THAN ANYTHING YOU COULD SAY ABOUT YOURSELF.

appRaising legal

WHEN SHOULD YOU ASK FOR A TESTIMONIAL? seRvicing seconDaRy MaRket

Have a marketing question or a product youâ&#x20AC;&#x2122;d like us to investigate? Please email your comments and suggestions to Kevin at

spotlight

Testimonials are a lot like referrals in that most loan hesitant to ask for one.

marketing@reversereview.com. REVERSEREVIEW.COM

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The ReveRse Review January 2013

PROTECT

TECH ACCORDING TO ALEXANDER AN EASY AND RELATIVELY COSTEFFECTIVE SOLUTION FOR COMPANIES LOOKING TO ENSURE PROTECTION FROM CYBERFRAUD IS TO CEASE THE USE OF MICROSOFT WINDOWS WHEN ACCESSING COMPANY BANK ACCOUNTS ONLINE. NEARLY ALL MALWARE IN CIRCULATION TODAY IS DESIGNED TO INFILTRATE AND STEAL DATA FROM WINDOWS-BASED COMPUTERS.

Preventing a Cyberattack AL E X AN D E R J . CHA UDHRY

GOING TO THE SOURCE 26

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To verify the strength of your password, use the Microsoft Password Strength Checker at:

microsoft.com/en-gb/security/pc-security/password-checker.aspx

TECH

oRiginating MaRketing tech

unDeRwRiting appRaising

legal seRvicing seconDaRy MaRket

A nationwide title and settlement company servicing the reverse mortgage industry.

spotlight

A BEttEr choicE! Our dedicated team of professionals has the experience and knowledge to smoothly close reverse transactions. Through years of experience, FNC has gained valuable knowledge by building strong relationships with reverse best treatment, and that is why FNC is where reverse mortgages take center stage.

240-864-4844

fnctitle.com REVERSEREVIEW.COM

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The ReveRse Review January 2013

PREPARE

UNDERWRITING How’s the Weather? R A L PH R OS Y N EK

FOR PROPERTIES WITH LOANS NOT YET CLOSED THAT WERE APPRAISED PRIOR TO THE DISASTER:

A FOR CLOSED LOANS THAT WERE NOT ENDORSED AT THE TIME OF THE DISASTER:

unfortunately, it won’t be the last. What happened to the time when idle chatter about an agenda item on the company’s property risk mitigation and audit checklist. 28

| TRR

UNDERWRITING

oRiginating MaRketing

For properties contiguous to the declared disaster area, some lenders may require a non-disaster

tech

or document from the borrowers at the time of closing or prior to endorsement wherein the borrowers indicate that there has been no damage or loss sustained to their property even though it is located near a federally declared disaster area.

unDeRwRiting

appRaising

x legal

1) Your borrowers must notify their insurance carrier as soon as possible after the

with a borrower who has

is delayed, any additional damage to the property that could have been avoided if the carrier was

of personal property. Itâ&#x20AC;&#x2122;s an

be fully insured.

Your customer service team is

3) Your borrowers should take a detailed inventory of the damage and photograph it. They should then compare their notes with

the claim adjustor after his inspection. 4) Your borrowers should separate the damaged property from the property that is not damaged. Attempts to salvage damaged property may be made by the insurance carrier.

spotlight

With record-breaking losses in the wake of Hurricane Sandy, mortgage servicers have been inundated with hazard and

obligations that your insured borrowers must adhere to after experiencing a loss:

borrowers should protect their property from further damage. For example, if there is a hole in the roof, your borrower is responsible for covering the hole and protecting the property from further damage. Your borrower should not worry about the cost associated with protecting the property as the expenses will most likely be covered by the insurer.

Have a question for this column? Email information@reversereview.com.

seconDaRy MaRket

SANDY LEAVES INSURANCE CLAIMS IN HER WAKE Dennis Swit

seRvicing

emotional time, but the advice provided by your customer service team can assist your borrowers with getting their insurance claims adjusted and paid quickly.

5) Lastly, your borrowers must fully cooperate in the investigation. Following these simple steps will assist your borrowers in getting insured claims adjusted and paid in a timely manner. REVERSEREVIEW.COM

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The ReveRse Review January 2013

Opportunity is knocking.

Generation Mortgage: TÁ-¢gU > ÚgºÁ Á,gÓg·ºgÁ ·Ãy>ygº TÁ ÕUg g ÃÁ >· gÃ yÁ-Ì¢¢ ·ÃÁ*· y·> TÁ/ ¢Á+Ì> ÃÖÁ ÌºÃ g·Á-g·Ó Ug TÁ Õ¢g·ÃÁ _ÌºÃ·ÖÁ/·> y TÁ6 Ãg_Á gºÃÁ,gÓg·ºgÁ ·Ãy>ygÁ ÁÁ7 gº> g·Á/Ô Á9g>·ºÁ Á>Á, ÔÁÊÜ \ÁÊÜ Ê

For more information contact: Laura Troy Wholesale Division Coordinator Toll-Free 866-790-6151 laura.troy@generationmortgage.com

Proud member of: © 2013 Generation Mortgage Company, 3565 Piedmont Road NE, 3 Piedmont Center, Suite 300, Atlanta, GA 30305 — 866-733-6090. NMLS #1319. For our state(s) legalese, visit: www.generationmortgage.com/statelegalese. 30 | TRR

VALUE

APPRAISING oRiginating

Compassion Is Key ROG E R BE AN E

MaRketing

tech unDeRwRiting

GOING TO THE SOURCE An effective appraiser must be sensitive to the needs of senior borrowers and work especially hard to accommodate them. It is process in a way that displays the utmost compassion for your senior borrowers.

appRaising

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REVERSEREVIEW.COM

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The ReveRse Review January 2013

ADAPT

LEGAL PERCEPTION IS REALITY, BUT IS IT REAL?

maybe

The Waiting Is the Hardest Part i JIM M ILA N O

“The waiting is the hardest part,

Every day you see one more card, You take it on faith, you take it to the heart, The waiting is the hardest part.”

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LEGAL

What does that mean? In short, it means the HECM program, although designed to oRiginating MaRketing

WHY CUT OFF YOUR NOSE TO SPITE YOUR FACE?

tech unDeRwRiting

T-D / T

LIFE IS NOT FAIR

appRaising legal

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REVERSEREVIEW.COM

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The ReveRse Review January 2013

LEGAL

CONCLUSION

“We can never know about the days to come, But we think about them anyway, And I wonder if I’m really with you now, day... Anticipation, Anticipation, Is making me late, Is keeping me waiting.”

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This article is based on the personal views of Jim Milano and does not represent the views or opinions of Tom Petty, the Heartbreakers or Carly Simon.

LEARN

SERVICING oRiginating

At Your Service RYA N L ARO S E

MaRketing

Reverse tech

Review

unDeRwRiting appRaising legal

W The Reverse Review

seRvicing

seconDaRy MaRket spotlight

question about the reverse mortgage servicing function, please feel free to share it with me at ryan@celink.com and Iâ&#x20AC;&#x2122;ll answer it in an upcoming column. x

REVERSEREVIEW.COM

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The ReveRse Review January 2013

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HMBS

SECONDARY MARKET

Want to see more stories like this? Visit reversereview.com.

oRiginating

Supply and Demand MA RK AC CH IO N E

MaRketing

tech unDeRwRiting appRaising legal seRvicing seconDaRy MaRket

spotlight

in MiD-2008 we expeRienceD a teMpoRaRy shutDown in capital MaRkets, the loss oF the pRoDuctâ&#x20AC;&#x2122;s sole investoR, two RounDs oF pRincipal liMit FactoR cuts, a Big Bank exoDus anD a constant stReaM oF eRRoneous negative pRess. yet we solDieR on. in Fact, as i aM wRiting this, the DeManD FoR hMBs on wall stReet is at its peak. DealeRs claiM theRe is an aBunDance oF ReveRse inquiRy FoR BonDs.

REVERSEREVIEW.COM

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The ReveRse Review January 2013

SPOTLIGHT ARTICLE tRR takes an insiDe look at the counseling

y januar

woRlD FRoM thRee veRy DiFFeRent peRspectives.

ON EDITI

A Counselor’s Perspective ANTHONY LOPES

i 38

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SPOTLIGHT ARTICLE WHAT ANTHONY HAS TO SAY

Squashing the Myths

Over the years I’ve met many HECM counselors and can honestly say that the majority of us genuinely believe in the product and the positive difference it can make for seniors. Our primary mission is to educate senior borrowers and ensure that they’re making informed decisions. To that end, we do our best to answer questions factually, to discuss the positives and negatives of various hecM loan features and to function as an impartial resource for information.

MATT MAROVICH oRiginating MaRketing tech unDeRwRiting appRaising legal seRvicing seconDaRy MaRket

The counseling component of the reverse mortgage loan process is often misunderstood, and that lack of understanding between counselors and lenders can easily lead to mistrust on the part of senior borrowers. That shouldn’t happen.

spotlight

REVERSEREVIEW.COM

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The ReveRse Review January 2013

ATTENTION

CALL US FOR REPAIRS LARGE AND SMALL!

We also handle INSPECTIONS, ELEVATION CERTIFICATES and more as a CONTRACTOR MANAGEMENT GROUP serving the REVERSE MORTGAGE INDUSTRY.

Fidelity Homestead Associates provides a contractor membership registry to expedite professional home improvement and repair estimates and provide quality workmanship to your clients nationwide. Spend your time working on loans. Let us handle the repair issues. Most estimates within 48 hours. 40 | TRR

SPOTLIGHT ARTICLE WHAT MATT HAS TO SAY

So I decided to do some primary research, to visit the other side and get to the bottom once and for all! I recently sat through three counseling sessions with three different, well-known and respected counseling agencies. What I discovered may astonish you.

oRiginating MaRketing tech unDeRwRiting

In a perfect world, if both parties are doing their jobs properly with the needs and best interests of the clients in mind and at heart, the entire counseling process should feel like one hand washing the other. Thatâ&#x20AC;&#x2122;s fair and impartial. Both sides should avoid lies and errors, and both sides should act honestly, ethically and professionally. No matter how you slice it, if a reverse mortgage is the right option for the senior, and he or she understands the product and

appRaising

unbiased counseling is only going to give them some muchneeded peace of mind about their decision. That should bring some peace of mind

legal seRvicing seconDaRy MaRket

x spotlight

Counseling Funding Frenzy JEREMY SHADRICK

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The ReveRse Review January 2013

GET THE VALUE BEFORE IT GETS YOU!

Introducing a powerful pre-qualification tool offering six expert-selected comps and photos, providing you with the data you need to qualify your borrowers and close more loans.

Get more accurate sales data with hand-selected MLS comparables and photos. Understand neighborhood and overall market conditions. Increase borrower satisfaction by providing the answers they need with a product that is cost effective.

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landmarknetwork.com

SPOTLIGHT ARTICLE WHAT JEREMY HAS TO SAY

oRiginating

If we were to raise the price of counseling sessions and establish a pool to disburse surplus funds from sessions that do not lead to loans, we could prevent agencies from having to request money from the seniors upfront. In both of these steps, the federal government is also taken out of the equation in terms of subsidies. I think this is a must if HECM counseling is going to continue in the long term.

MaRketing

as tech

de Some I

possible pr blem solvero s

unDeRwRiting

appRaising

A LENDER-FUNDED POOL. THIS IDEA WOULD REQUIRE LENDERS TO CONTRIBUTE TO A POOL BASED ON THE VOLUME OF LOANS THEY CLOSE ON A QUARTERLY OR ANNUAL BASIS, AND THAT FUNDING WOULD BE PASSED DOWN TO COUNSELING AGENCIES.

legal seRvicing