TNR - April 2008

Issue 010 April 2008 TheNicheReport.com

SEE OUR AD ON PAGE 7

13

The Broker's Role in Today's Market A lender's perspective.

Approved Are Your 16 Get 20 for FHA & VA Clients Just

Stage 24 Center with World

Loans

Satisfied?

Alliance

Find out the facts.

Creating loyal clients is a must.

Join the growing niche.

;gdb % id 8adh^c\ ^c , 9Vnh Your Private Money Lender

(866) 551-BLUE www.BlueWaterFundingLLC.com Closing Loans on Commercial and Investment Property Throughout the Mid-Atlantic Direct Lender s Interest Only s Loan Amounts to $5 Million s Quick Closings s Competitive Rates s No Up-Front Fees 4925 St. Elmo Avenue, Bethesda, Maryland 20814 Brokers Protected and Respected

Weathering the storm.

Let’s face it; things aren’t looking so good right now.

And chances are the market will show us a few more dark clouds before the sun comes out again.

Despite these gloomy forecasts, Avatar is financially stable and has plenty of capacity to fund new loans. A hard money loan may be the ideal way for your clients to seize an opportunity, solve a problem and weather the storm.

So if you’re ready to deal, we’re ready to listen.

Call us today at 888.896.0083 to discuss your loan or visit www.avatarfinancial.com for more information.

A different kind of loan. A different kind of lender.

Our loans come through faster.

And that can take you further.

ACQUIRE. BUILD. DEVELOP. AND CLOSE. FAST. Large amounts of money, incredibly fast. What more could you want from a lender? Well, how about experience, expertise in numerous industries, loan evaluations that are more understanding and great rates, to name just a few more things. Call 24 Capital.

With the right funding, you’ll be amazed at how far you can go.

1-888-333-9923 24capital.com

COMMERCIAL BRIDGE LOANS FROM $3 MILLION TO $100 MILLION • 24-HOUR COMMITMENTS • GREAT LOW RATES ALL PROPERTY TYPES, INCLUDING : MULTIFAMILY, SHOPPING CENTERS, OFFICE BUILDINGS, HOTELS, MOTELS AND MORE LAND ACQUISITIONS, DEVELOPMENT AND CONSTRUCTION, REFINANCING, TURNAROUND SITUATIONS • CLOSE IN AS LITTLE AS 5 DAYS

CONTENTS

16

Issue 010

April 2008

Get Approved for FHA & VA Loans Find out the facts.

LESLIE PETERSEN Mortgage lending writer for www.mortgagecurrentcy.com

NICHE REPORTS PRIME

pg 31

ALT–A

pg 31

NONPRIME

pg 32

HARD MONEY

pg 33

COMMERCIAL

pg 35

CONSTRUCTION/REHAB pg 36

FOUNDER & PRESIDENT Robert Pegg robert@nichereportonline.com

13

The Broker's Role in Today's Market tim bassett national director of business development for american bank mortgage group A lender's perspective.

14

Brokering Commercial Loans

24

the niche report Join the growing niche.

28

shawn williamson commercial financing specialist / correspondent How to "close" the deal.

Your Clients 20 Are Just Satisfied? tom ninness regional production manager for cherry creek mortgage and president of summit champions, inc.

Creating loyal clients is a must.

6

April 2008

Center Stage with World Alliance

Tip of the Month STEWART MEDNICK seasoned mortgage banker and published author Framing the Situation.

DEPARTMENTS

09

NOTE FROM THE FOUNDER

10

CALENDAR OF EVENTS

37

LENDER & RESOURCE DIRECTORY

CO-FOUNDER & PRESIDENT David Pegg david@nichereportonline.com EDITORIAL/CONTENT MANAGER Kristen Moser kristen@nichereportonline.com ACCOUNTING MANAGER Shawna Ingram shawna@nichereportonline.com SALES MANAGERS Jason T. Buff jason@nichereportonline.com Lance Jackson lance@ml-implode.com Lorena Leggett lorena@ml-implode.com DESIGN Plumbline Studios, Inc. Eric Ball ADVISORY BOARD Aaron Krowne, President and CEO, IEHI, Inc. PRINTER / CIRCULATION MANAGER The Ovid Bell Press, Inc. CONTRIBUTING AUTHORS Tim Bassett Stewart Mednick Leslie Petersen Shawn Williamson Tom Ninness

WHEN IT COMES TO

NON-TRADITIONAL

COMMERCIAL LENDING,

Published monthly by BODA Publishing, LLC 6016 Alderdale Place, Haymarket, VA 20169 Phone: 540.657.2632 Fax: 703.991.2362 Email: info@nichereportonline.com www.TheNicheReport.com

SUBSCRIPTIONS This publication is intended for real estate finance professionals. If you are a mortgage broker, lender, loan officer and you do not currently receive The Niche Report, please send your name, company name, and address to subscriptions@nichereportonline.com.

To opt-out of receiving The Niche Report, please send your request, including name, company name, and address to opt-out@nichereportonline.com.

ADVERTISEMENTS

HERE’S THE PROOF: SBA/USDA/non-conventional owner occupied commercial mortgages to $2MM • Credit scores as low as 500 • Up to 85% financing • Difficult-to-finance industries welcome including gas stations, auto repair, motels and specialty trade contractors • Low minimum debt-service coverage required • Private money refinancing specialists

To inquire about advertising in The Niche Report, please call 540.657.2632, or send an email to ads@nichereportonline.com.

Visit our website, www.TheNicheReport.com to download a copy of our Media Kit.

EDITORIALS / ARTICLES To submit an article for consideration in The Niche Report, please send an email to kristen@nichereportonline.com or call 540.657.2632. We are interested in original writings relevant to mortgage brokers and other real estate finance professionals.

If you have a comment or question about an article or editorial published in The Niche Report, or if you have a suggestion for a topic you would like to see featured in a future issue, please send an email to kristen@nichereportonline.com.

THE NICHE REPORT POLICY The information and opinions expressed by contributing authors and advertisers within The Niche Report do not necessarily reflect those of BODA Publishing, LLC employees and should not be considered as endorsed or recommended by BODA Publishing, LLC.

DKS Settlement Group LLC

Call now for a fast evaluation and approval of your deal!

1-877-337-3757

www.oceancapitalonline.com Brokers are fully protected and well compensated

! We will close ANYWHERE, ANYTIME. ! Your home, realtor’s o!ce, place of work, etc., YOU CHOOSE. ! Nights and weekends. ! No need to sit in tra!c to get to your closing, let us come to you.

Mention this ad in TheNicheReport to DKS Settlement Group, prior to settlement, in order to receive your $200 settlement credit

P) 703-730-9737

www.DksTitle.com

F) 703-656-4915

Serving VA, MD and DC

NOTE FROM THE FOUNDER

Thanks to all of you that stopped by to see us at the Maryland Association of Mortgage Brokers Conference last month. As always, it was great to meet some of our readers. Despite the fire drill episode (if you were there you know what I’m talking about), it was a great turnout and we were pleased to be there.

The Niche Report also attended Fannie Mae’s “Back to Basics” seminar in Greenbelt, Maryland last month. This event, attended by mortgage brokers in the Maryland, Virginia and Washington DC areas, was so successful, they opened up a second afternoon session to allow for more attendees. If any of you have a chance to attend one of the Fannie Mae seminars, I highly encourage you to do it. Fannie Mae provided some fantastic information about their products, including an explanation of the new conforming jumbo loan programs.

Be sure to check out this month’s feature article on the steps to becoming an approved FHA originator. If you aren’t already approved to originate FHA loans, now is the time to jump on it. With the demise of most subprime programs, FHA may be your only outlet for credit-challenged and asset-challenged borrowers. We also have a great article by Tim Bassett with some excellent tips for creating client loyalty and building your referral business. Shawn Williamson offers his advice on how to finally close those commercial loan files that have been sitting on your desk for a while.

And continuing with the “Building Income” series, Mitch Chapman is back, this time focusing on building income through building materials. Our Center Stage this month is with World Alliance Financial Corp., one of the leading innovators in the reverse mortgage industry and the third largest originator of reverse mortgages in the nation. The company shares some interesting information about their products and services as well as some great advice for adding reverse mortgages to your lending portfolio. Stewart Mednick’s Tip of the Month advises brokers to use creative marketing and relationship building using his ‘Framing the Situation’ technique in order to set you apart from your competition. Another excellent idea from Stewart – be sure to check it out.

Robert Pegg Founder & Publisher

TheNicheReport.com

9

CALENDAR OF EVENTS

Upcoming Key Dates & Events: April – may 8GI@C )''/ J D K

N

K

=

J

(

)

*

+

,

-

.

/

0

('

((

()

(*

(+

(,

(-

(.

(/

(0

)' )( )) )* )+ ), )). )/ )0 *'

D8P )''/ J D K

N

K

=

J

(

)

*

+

,

-

.

/

0

('

((

()

(*

(+

(,

(-

(.

(/

(0 )' )( )) )* )+

), )- ). )/ )0 *' *(

APRIL 8 Housing Forecast / Pending Home Sales Index released by the NAR.

APRIL 10 Reverse Mortgage Lending Conference at the Westin Horton Plaza, San Diego, CA. Visit www.mbaa.org for details.

APRIL 11 Reverse Mortgage Lending Conference at the Westin Horton Plaza, San Diego, CA. Visit www.mbaa.org for details.

APRIL 16 MBA’s National Policy Conference at the Washington Court Hotel, Washington DC. Visit www.mbaa.org for details.

10

April 2008

APRIL 17

May 7

MBA’s National Policy Conference at the Washington Court Hotel, Washington DC. Visit www.mbaa.org for details.

Commercial/Multifamily Capital Markets Spring Conference at the Hynes Convention Center in Boston, MA. Visit www.mbaa.org for details.

APRIL 22

Housing Forecast / Pending Home Sales Index released by the NAR.

March Existing-Home Sales released by the NAR.

May 13

APRIL 28

1st Qtr. Metro Home Prices / State Resales released by the NAR.

Legal Issues / Regulatory Compliance Conference at La Costa Resort and Spa in Carlsbad, CA. Visit www.mbaa.org for details.

APRIL 29

May 14 Maryland Association of Mortgage Brokers "Selling Skills Seminar" with Ron Vaimberg in Columbia, MD. Visit www.mamb.org for details.

Legal Issues / Regulatory Compliance Conference at La Costa Resort and Spa in Carlsbad, CA. Visit www.mbaa.org for details.

Commercial Leading Indicator released by the NAR.

APRIL 30

May 23

Legal Issues / Regulatory Compliance Conference at La Costa Resort and Spa in Carlsbad, CA. Visit www.mbaa.org for details.

April Existing-Home Sales released by the NAR.

may 1 Legal Issues / Regulatory Compliance Conference at La Costa Resort and Spa in Carlsbad, CA. Visit www.mbaa.org for details.

May 6 Commercial/Multifamily Capital Markets Spring Conference at the Hynes Convention Center in Boston, MA. Visit www.mbaa.org for details.

May 21

WHAT'S YOUR NICHE? Advertise it monthly in The Niche Report. info@nichereportonline.com www.thenichereport.com 540.657.2632 703.991.2362

AN UMBRELLA OF PROTECTION IN THESE STORMY TIMES

Credit Plus provides a full suite of products to help our lenders increase the number and quality of closed loans.

PRBC non-traditional credit reports PRBC ReportsSM contain trade line data on rent, mortgage, utility, phone, insurance, childcare, and other recurring bill payments that are not commonly reported to the traditional credit bureaus.

Credit Assure™ Credit Assure™ automatically scans credit files for opportunities to raise credit scores based on accuracy or credit management updates. Intelligent, automatic, and easy, Credit Assure inspects every file so you don’t have to.

5JUMF 4FSWJDFT t 5SBEJUJPOBM "MUFSOBUJWF BOE 8BSSBOUFE 7BMVBUJPOT 4FUUMFNFOU $MPTJOH 4FSWJDFT t 'JFME 4FSWJDFT BOE 0UIFS 1SPEVDUT

For more information, call 1.800.258.3488 or visit our website at www.creditplus.com.

Credit Plus provides FREE training

"3.T UP ')" -FBET 4BWF VQ UP PO ZPVS PSEFS 4QFDJĐD "EKVTUNFOU 1FSJPET .PSUHBHF "NPVOU 3BOHFT -57T .BSLFU 7BMVFT

$BMM GPS EFUBJMT

"MTP BWBJMBCMF ')" UP ')" 4USFBNMJOF MFBET

XXX ENBMFBET DPN

THE BROKER'S ROLE IN TODAY'S MARKET A lender's perspective.

BY TIM BASSETT

D

isintermediation of the broker eliminates the broker, but not the function the broker provides.

Brokers provide a viable, self financing, elastic channel of distribution. Disintermediation of the broker transfers the costs of their function to the bank. Often these costs are way higher than a broker’s. Banks need to display their brand with a marble lobby and other branding emblements, where a broker often can run an efficient operation from his or her home. For a bank’s budgeting purposes, fixed costs are divided over forecasted origination volumes and margin pricing policies are set to arrive at expected revenues. Excepted costs are subtracted from expected revenues to arrive at expected profits. The mission of a bank is to make a profit.

The volumes or margins need to be higher than a broker’s when fixed costs are higher than a broker’s. To open a retail branch of a bank the costs are considerable. These are sunk costs and are often amortized over a period of years.

Regardless of the voodoo economics, the broker in theory has a pricing advantage*. Also, the integration of these new employees and the new channel absorbs considerable resources from the bank. The broker can be nimble, are generally flat in management hierarchy, and can adapt in much shorter periods if they want. The management of a bank’s wholesale operations is often thin on the skills needed to develop effective and efficient retail operations.

They have a lot to do to squeeze the broker out. Banks will often use high commissions, pricing and benefits as a mechanism to attract talent and new business; adding to costs and subtracting from revenues. At the end of a start-up period the finance division will find that this model is much more expensive and alternatives will be implemented. This will converge with the ripe opportunity to re-enter wholesale.

Banks will begin to chase brokers again but be saddled

with the expense of all the retail branches they have opened.

Be patient, brokers and center on the Zen of the situation; all of life is on a wave.

Roll back your costs and margins. Maintain your focus. Get better at what you do. Generate higher quality, complete loan originations. Increase your activity in the areas that you can actually sell something. There are still billions of dollars in mortgage originations each week.

Know your products and systems completely. Maintain the channel’s integrity and only submit loans with a high probability of closing. Offer your clients a quick “no” instead of spinning unlikely loans through the system.

Don’t waste time on areas that do not increase your value. It is what it is right now. And it will change. And change again. Evolutions and growth are paramount.

Adapt, survive and prosper.

We at American Bank Mortgage Group are committed to the wholesale channel with high quality mortgage professional. We are growing exponentially as others are withering or shutting down. *Pricing in theory should be better with a broker as a broker’s cost structure is lower than a bank’s. We know the math, revenue – costs = profits. However, the broker needs to sell to the very banks that are implementing the disintermediation strategy. The banks are raising prices to brokers and simultaneously restricting program access. My question is why do you feed the monster that is trying to eat you? Find other access to liquidity. This is a capitalistic economy (in theory); other liquidity sources recognize this conundrum and are feeding the markets with liquidity. Use those sources.

Tim Bassett is the National Director of Business Development for the wholesale and retail channels of American Bank Mortgage Group. Tim can be reached by email at tbassett@americanfsb.com.

TheNicheReport.com

13

BROKERING COMMERCIAL LOANS How to "close" the deal.

BY SHAWN WILLIAMSON

I

often hear brokers complain that they have had deals on their desks for months with no closure. The main reason this occurs is because the broker is not educated on commercial loans: where to go, how to structure, and even what information to ask from the borrower. These brokers work in bits and pieces and often waste their time and the client’s time if this deal is not even closeable.

If you can review the deal and get answers back to the borrower quickly, it reduces the pressure on you as the broker. If the deal is not doable, you saved yourself time.

You even created value in your service if you educate the borrower on why the deal will not work, and then offer structural changes that will make the deal close.

Another key factor I will touch on is speed. Not just for the above reasons but because you are being shopped.

If this deal is a good deal, you want to bang out a term sheet as fast as possible to keep this deal in your hands. If you are asked about rate without docs, a broker or lender will not be able to give a real rate; usually just a range and say “it depends.” Get loan summaries completed and ask questions so that you look like the consultant and create value.

There are many documents that need to be reviewed in a deal. A borrower and seller are always slow at getting what is needed. The keys to getting these documents are confidence and firmness. You need to instill urgency with the borrower to get the documents to you in a reasonable amount of time. More than likely there is a contract already in place which means that you are in a time crunch from Day 1. These borrowers have contracts that will put their hefty deposits in jeopardy if the financing 14

April 2008

is not in place. Without the necessary documents needed to fully review the file’s strengths and weaknesses, you can’t help yourself or the borrower. Brokers must explain the importance of these documents and demand them fast. As you create value in yourself borrowers will begin to trust you and know you are asking for information because it is needed. They should want you to evaluate their deal as a consultant on their side. For example, brokers can review key evidence that points toward the return on investment opportunity or whatever the borrower’s goal may be.

You need to acquire these documents and crunch numbers to see if it is a doable deal. The key is to be firm and confident that “this is what I NEED.” Set a deadline date for the documents. If they need to call their CPA, ask if you can call the CPA. If they complain about forms, you may want to ask “Well do you want seven million dollars, don’t you?” You must be quick, because if there is a hiccup somewhere and/or they do not like the rate and terms, you may have to negotiate. Get the needed docs together; send in a complete package for this deal type to the bank. Get the letter of interest from the bank, put together a term sheet from the letter of interest (LOI) and have your client sign it.

It is best to use a PQ form based on each deal type to help explain the deal to you and your underwriter. When rate comes in to play, DON’T sell rate. Sell payments, solutions, features of the loan and amortizations. Explain the payment to the borrower. A 30 year amortized loan will have a lower payment than what they may have been quoted by someone else. Explain the Return On Investment (ROI). This is the best way to show that your deal is better. Look at the deal as a whole. Look at your deal versus the competition and dissect each part from

out of pocket due diligence, down payment, monthly payment, PPP, fixed term, and ROI. If you have made the best possible effort on structuring the deal and are educated on where to go, you should have the upper hand.

Give the borrower one week to accept the term sheet.

If they do not come back in a week, they are moving too slow, shopping you more and more, and they are clearly just not interested. Move on. Note: 9 out of 10 commercial deals will not work - with you or with anyone.

Step 1 – Marketing Let your past clients, current clients, and friends know that you are now brokering commercial loans. Ensure all your marketing materials and outgoing messages include your new commercial business programs.

Step 2 – Pre-Qualify and Screen Figure the Debt Service Coverage Ratio (DSCR) and look for any weaknesses in the deal. Tweak these issues or restructure the deal for a lender that allows these types of issues. Think in time frames. Instill urgency with both the lender and the borrower. This will help get the necessary documents quickly and the information

needed from your lender quickly. Remember you must think in speed and urgency. Moving swiftly will allow the borrower less time to shop. Get a NCND form signed to protect you from the borrower going around you.

Step 3 – Get a Term Sheet kicked out to the client Lock in your borrower with an agreement for financial services or Term Sheet. A Term Sheet is best and should include a seven day expiration period. This agreement solidifies that the shopping period is over and you now have a 90 day exclusive. Put the payment on the loan and walk them through the strengths and benefits. Call every two days until the day before the Term Sheet is set to expire.

Following the above three steps will ensure your commercial deals close, as opposed to sitting on your desk for months. These steps will save you and your borrower’s time and in the end will create value in your services.

Shawn Williamson is a Commercial Financing Specialist/ Correspondent with a diversified range of partners, providing the expertise required to meet the borrowers needs and/or market demands. You can find more of Shawn's original articles at LoanOfficerConsultant.com.

Hard Money Loans from $100,000 to $1,500,000 •Minimum Credit 400 •No seasoning

•No up front fees •48 hour closing

ALL LOANS FOR BUSINESS OR INVESTMENT PURPOSES ONLY For an immediate online approval and commitment letter, go to WWW.FMV1.COM and fill out our loan qualifier

Can’t find your way through the financial labyrinth?

First Mount Vernon will lead you through!

First Mount Vernon loans are ideal for owners who: •Do not qualify with traditional lending sources

•Need to close quickly •Need construction or rehab funds •Are at risk of losing a property •Can’t provide full documentation

YOU ARE HERE

•Need an immediate answer

6019 Tower Cour t, Alexandria, VA 22304 Phone: 703-823-6800 or 866-908-FMV1 (3681) Fa x: 703-997-2499 Paul Fogle or Ar t Bennet t First Mount Vernon is a privately-owned, equity-based lender which specializes in lending to borrowers who can’t secure funding from traditional financing sources.

Loans typically funded within two business days upon receipt of completed package. First Mount Vernon does not make consumer loans.

Financing is for business or investment purposes only, secured by real property.

Get Approved for FHA & VA Loans Find out the facts.

BY LESLIE PETERSEN

“I see my competitors originating government loans. I understand that the process of getting approved isn’t worth it… but is what I am hearing true?”

Let’s start with VA, because getting a Mortgage Broker approval is SO EASY, it’s a no-brainer! To become an Agent for a VA approved lender, just follow these steps.

1. Find a lender who is willing to take you on as an “agent”.

(There are quite a few wholesale lenders out there who offer this service.)

2. The LENDER must submit a request to the VA office in your region, asking for recognition of an “agency” relationship, along with a corporate resolution and $100.

3. VA will return a Letter of Recognition of the relationship and provide an Agent ID number.

Voila, it’s done!! The key is to find a lender who is willing to accept full responsibility for what you do and for your loans—but essentially, that’s what wholesale lenders do anyway. The wholesale lender may have their own Broker Application and/or require VA training (this is a good idea anyway) before they will let

you originate VA loans, but as far as VA is concerned, it’s all up to the wholesale lender.

For complete details about being a VA “agent,” go online to the VA Lender’s handbook at www.warms.vba. va.gov/pam26_7.html, Chapter 1, Topic 7.

With FHA, getting approved is much more difficult. It includes minimum net worth requirements, annual audited financial statements, a working quality control plan, and more.

FHA requires all origination functions on FHA loans to be performed by FHA approved lenders or FHA approved correspondent lenders. Lenders who have not been approved by FHA may not originate nor be paid for the origination services of FHA loans. Because the origination function must be performed by an approved lender, FHA issued a Policy Statement clarifying that they consider the payment to a non-approved lender a DUPLICATION of SERVICES and a violation of Section 8 of RESPA. You don’t want to take the risk of a RESPA violation, and you need an approval if you want to originate FHA. Some of the general requirements are: •

•

•

Acceptable Business Entities – Corporations, Partnerships, LLC’s with 2 or more members, Chartered Financial institutions. Sole proprietorships are not permitted.

Staff must consist of 2 or more employees and must be exclusively employed by the legal entity. (A shared receptionist does NOT meet this requirement.)

Office facilities must be separate from any other entity and clearly identified to the public with a permanent business sign.

Most brokers obtain approvals as a Loan Correspondent (also called a Mini-Eagle). Don’t be concerned about the term, because “Loan Correspondent” in the FHA language doesn’t have the same meaning as it does in the conventional world. To get approved you need to submit all of the following to HUD. •

• •

•

HUD Form 11701 Application (Can be found at http://www.hud.gov/offices/hsg/sfh/lender/title2ap.cfm) Copy of State License Picture of facilities, floor plan, both inside and outside with sign on door, a directory or outside sign Certified and audited financial statement with

adjusted net worth of $63,000, with 20% of funds being liquid. Original copy and less than one year old.

• Credit report on all senior company officers and those with more than 25% ownership in company.

• Business credit report or Dun & Bradstreet Report is required • Resume of Senior Corporate Officers (must have at least 3 years of origination experience) • Funding Letter from Sponsor • Quality Control Plan • Letter that lender has not been “sanctioned” by any government agency • $1,000 non-refundable application fee.

Even though it’s difficult, many of your current lenders will help you through the process, and they will sometimes pay the $1,000 fee. The process is more than worth it if you are able to meet the requirements.

FHA is very often the best loan available for so many of your clients. Also, you can get a lot of loans approved using FHA that you might not get approved any other way. Here are some reasons why FHA is such a great loan!

• •

•

• •

• •

•

•

Unlike most people think, there are no income limits FHA doesn’t have a LTV reduction for properties in declining areas With the new loan limits in place, there are areas you can get jumbo loans approved with 3% down payment at going interest rates FHA rates are as good as conforming, sometimes better FHA is one of the only remaining assumable loans (subject to qualifying) 95% cash out refinances!

Streamlined refinances with no appraisal and no qualifying Loan approvals if the borrower is in the middle of a Chapter 13 bankruptcy No credit scores available, only non-traditional credit

I could go on and on. And on. In fact, I recommend that you read the article in the March issue of The Niche Report for the basics of FHA. Back to the beginning, I advise every broker to find a lender who will take them on as an agent and to learn the VA program. It will open up an entire new arena of business and it is so easy to make happen.

TheNicheReport.com

17

As far as FHA is concerned, it takes a much bigger commitment and you may not want to go through the process if FHA loan limits in your area were too low to originate FHA loans before the economic stimulus package passed. Unfortunately, the high loan limits are due to expire at the end of the year.

There’s no question, VA’s worth doing. With FHA, weigh your pros and cons – but recognize that you are missing out on a huge segment of the market if you are unable to take advantage of this amazing loan program.

Leslie Petersen with over 30 years experience in mortgage lending, writes www.MortgageCurrentcy.com, an online newsletter on the changes in Fannie/Freddie, FHA, VA and other regulatory agencies--but with a twist. For Originators, Underwriters and Managers, she also interprets them in plain English and shows them how to make the rules and changes work for them--and get more of their loans approved. Find her at leslie@MortgageCurrentcy.com

NDJG 8DCC:8I>DC ID HJ88:HH ^c '%%-

:YjXVi^dc :m]^W^ih CZildg`^c\ HeZX^Va :kZcih

VEGAS MGM GRAND

NAMB/WEST

November 14-18, 2008

;dg VYY^i^dcVa ^c[dgbVi^dc \d id/ lll#cVbW#dg\

4016_NAMB_ConnectSucessAd_2.indd 1

2/28/08 9:22:16 AM

ARE YOUR CLIENTS JUST SATISFIED? Creating loyal clients is a must.

BY TOM NINNESS

Y

ou have the perfect loan, the perfect clients, you make all of the dates on the contract and you even go to the closing. You’ve created a “non-event” for the client so why wouldn’t they come back to you?

There is truly a difference between creating loyalty and just having satisfied clients. After reading and pondering what I learned from the book by Jeffrey Gitomer titled, Customer Satisfaction is Worthless…, it has changed how I look at my clients.

Tupper Briggs, one of the most dynamic real estate agents in the country, has had up to 73% of the listings in the town of Evergreen, Colorado at a given time. So, I want you to pretend that you’re a Realtor® and your client has just purchased one of Tupper’s listings. You, as the selling agent did a wonderful job. At the closing, you hand over the keys to your clients, congratulate them and then passively you mention for them to send you some referrals. Well, Tupper knows an interesting fact: 80% of his competition does not stay in touch with their past clients. So here is what Tupper does after closing:

1. A few days after closing when Tupper knows that your clients have moved into the neighborhood, his wife delivers to their home a wonderful basket of baked goods and welcomes them to their new home.

2. A week later, Tupper will be calling your clients and will re-introduce himself to them. He’ll ask questions on how the move went, have they had a chance to meet the neighbors, etc. Then comes the big question and here’s how it goes.

“Let me ask you a question, is there anything wrong with the home, or is something not working that you thought was working during the inspection?” Tupper will get something out of the client that could be as small as a sprinkler head to a major repair. So let’s pretend that two zones are not working on the sprinkler system. Tupper’s response is, “Your problem 20

April 2008

is now my problem. I’ll have my handy man contact you to get it fixed at my expense.” So what happens next?

3. Tupper will now put your client on his mailing list, he will call them and check up on them about four times a year. He will invite them to his summer picnic and holiday party, and guess who’s going to get the listing when the client gets ready to move? Tupper!!

Protecting Your Turf As a mortgage banker, we fund the loan, but we don’t service the loan. Every month, the servicing company tries to entice our client to refinance with them, to take out a HELOC with them; it’s so simple and easy.

Can we be assured that our client will come back to us, or at least give us a chance to do business with them again? I believe you can by the following these steps: 1. The first loan transaction is the most important.

“You only have one chance to make a first and lasting impression”. The superior service that we deliver must be consistent so that our client feels confident to come back and refer their friends, family and co-workers. Remember, you can’t WOW them until you’ve at least satisfied them.

2. Did you WOW them with the experience the first time?

We do special “Congratulations” and “Thank Yous” during the loan process. One of the things we do when our client’s contract gets approved is send them Tag-A-Room stickers for their moving boxes. They are really inexpensive (around $7.50), but it’s a surprise that they weren’t expecting. Go to www.tagaroom.com and check out the site.

3. Form a net on your client after closing. I follow a similar follow-up system as Tupper does.

• After closing, I send another small gift - a magnetic letter opener in which I insert my business card. I write a short

note thanking the client again and suggest that they use the new letter opener to open all the new mail that will soon be coming to them.

• I then follow up with a phone call to see how the move went and to see if any of their contact information has changed due to the move. I then go into asking some very important questions.

“Mr. Buyer, I need to know if based on the service we provided, would you do business with us again when you purchase your next home or if you need to look into refinancing?” Hopefully they say yes. I then explain to them how I’ll be staying in touch with them through my mail/email and phone calls to see how they are doing and to let them know when I will be doing special events such as picnics, real estate investment classes and seminars. I remind them that the servicing lender is going to entice them to do business but ask that they call me first when their mortgage needs arise.

• What if they say “no” or “maybe”? First, never argue with the client or try to justify why things didn’t go well. I’ve learned from experience that I might win the battle but I won’t win the war.

• After the conversation, I will send a letter of apology and a

gift certificate for around $50.00 and ask them to accept this with my apology. I can tell you that 80% of “Just Satisfied or Dissatisfied Clients” will respond positively and allow me to stay in touch with them— and some of them have become my best referral partners.

Final Thoughts Creating loyal clients is a must for repeat and referral business. They will keep coming back, refer their sphere, and bring stability in your business even when the market slows down. Make sure you stay in touch with your past clients or your competitor will take over your turf. Loyal clients already know and trust you. They will not be easily swayed to go with someone else. Loyal clients become friendships because you have stayed in touch with them. Loyal clients are created over time - not just from one satisfying experience.

Tom Ninness, Regional Production Manager for Cherry Creek Mortgage and President of Summit Champions, Inc. Tom is also the creator of the “90 Day Journey for your Sales Success”. To learn about all of Summit Champion’s products, tools and strategies, go to www.summitchampions.com or contact Tom at information@ summitchampions.com.

Unlimi t ed C al l i ng Phone S erv i ce $24 .95 .95

per per month month

LOCAL NUMBERS

Voicemail

Caller ID

Fax to email Numbers

866.484.7555

Call Forwarding Toll free Numbers WORKS WITH ANY PHONE SYSTEM

AUTO ATTENDANT

MUSIC ON HOLD

EASY TO INSTALL

Get connected!

Call for a free Quote

www.voicegain.com Fortune 500 Technology

Communicate with the world

EDC Equity Development Corp.

HARD MONEY INVESTOR REHABILITATION LOANS

Equity Development Corporation (EDC) is a private lending and consulting firm that provides hard money loans and consulting services for residential real estate investors that buy and rehabilitate distressed real estate.

•

The funding that Equity Development Corporation provides allows investors to have none of their own money tied up in the real estate transaction. EDC loans the 100% funding packageacquistion funds, construction funds, and all purchase closing costs.

For more information, please review our loan terms and procedures on the web at www.equitydevelopmentcorp.com or call us at 757.460.9096 or 1.888.460.9096.

Brokers Welcomed Paid Full Commission

•

100% FUNDING Aquistions, Construction, Closing Costs

• •

•

SIX (6) MONTH LOANS •

LOANS UP TO 73% LTV NO MONTHLY INTEREST PAYMENTS

•

FAST CLOSINGS

•

VERY COMPETITIVE RATES

FULL SERVICE CONSULTING Services included in the cost of financing

(Based on the After Repair Value)

•

NO PREPAYMENT PENALTIES

NO INSPECTION FEES

•

LOAN APPROVAL within 24-48 Hours

•

NO HIDDEN FEES

•

NO APPLICATION FEES

Currently Serving Pennsylvania Washington DC North Carolina Texas

Maryland Virginia South Carolina Florida

Future States/Markets: Alabama, Tennessee, & Kentucky, Missouri, Kansas

Apply online or for more information visit- www.equitydevelopmentcorp.com Equity Development Corporation | 448 Viking Drive, Suite 390 Virginia Beach, VA 23452 | (p) 757.460.9096 or (toll free) 888.460.9096 | (f) 757.460.4079

Where your industry is our priority.

Call us today at 866.452.8800 Toll Free Or go to Mortgageboard.com

Mortgageboard.com is a Niche Career Center with the internet's largest pool of industry professionals.

Did you know that by posting your positions on Mortgageboard.com, your job advertisements can be quickly found throughout a network of search engines and industry websites?

We are much more cost effective than the generic job boards and cater specifically to the types of positions for which you recruit.

To get more information about posting positions on the Job Board and having access to the resume database of local and national jobseekers call (866) 452-8800 Toll Free or go to Mortgageboard.com.

We offer discounts of up to 10 to 20% off select packages* to all employers who find us through TheNicheReport.com. *Discounts redeemable once and not in conjunction with other offers.

TheBoardNetwork.com Mortgageboard.com | Titleboard.com | Escrowboard.com | Bankingboard.com | CreditUnionboard.com

CENTER STAGE

CENTER STAGE WITH WORLD ALLIANCE Join in on a growing niche.

BY THE NICHE REPORT

I

f you are trying to survive in this market there is no better niche to jump into than Reverse Mortgages.

This month we bring to you an industry leader in the Reverse Mortgage market – World Alliance. Find out more about their company and how they’re helping forward mortgage originators join in on an expansive, growing niche.

Tell us about World Alliance Financial and the services the company offers.

World Alliance Financial is one of the leading innovators in the reverse mortgage industry and the third largest originator of reverse mortgages in the nation. The company provides comprehensive lead-to-close loan services to a nationwide network of mortgage companies through marketing, lending, education and technology solutions. World Alliance Financial educates consumers on the unique aspects of reverse mortgages through the Senior Lending Network, our national consumer education campaign.

Mortgage companies who do business with World Alliance Financial are provided with a dedicated account manager for ongoing reverse mortgage training and excellent customer service to guide them through the reverse mortgage process.

In addition, World Alliance Financial offers technology that allows brokers to track their progress, generate reports and access resources to process and close loans.

Explain the difference between forward and reverse mortgages, and what the benefits are of reverse mortgages.

A reverse mortgage is a special type of loan that enables senior homeowners to convert a portion of the equity in their home into cash, and most reverse mortgages are federally insured. Unlike a traditional “forward” mortgage, there is no 24

April 2008

repayment required of the borrower until they no longer use their home as their principal residence and, at closing, all prior liens on the property must be paid. Additionally, there are no income, medical or credit requirements for a reverse mortgage.

To qualify, a borrower must be 62 years and older; the home must be their principal residence; and it must be a single family residence, two-to-four family unit dwelling, condominium or part of a planned unit development.

There are many benefits from a reverse mortgage for senior consumers. As long as the borrower lives in their home, there is no repayment of the mortgage and the funds they receive are tax-free. Under the condition that the borrower maintains their home and pays insurance and real estate taxes, they retain ownership of their home for life. A borrower could use the proceeds to pay bills, plan a vacation or pay for any of life’s expenses.

What do you offer to help non-FHA brokers enter into the reverse mortgage industry?

World Alliance Financial offers a unique opportunity for non-FHA brokers to step into the reverse mortgage industry.

Our HECM Advisor Network is a program that invites nonFHA brokers to examine new and different ways to expand their product offerings to clients by including reverse mortgages. The HECM Advisor Network offers brokers a way to complement their current client product offerings with our HECM Advisor Network platform. The platform is designed to integrate seamlessly into brokers’ core business models.

Through the HECM Advisor Network platform, World Alliance Financial trains state licensed non-FHA brokers who currently operate in the forward mortgage business on how to enter the reverse mortgage industry successfully and how to maximize their client base by incorporating this additional service into their business. Brokers who participate are provided with personalized attention from an account executive who

CENTER STAGE

will support them through the entire process.

What products do you offer and how do you determine how to place a senior borrower in the right reverse mortgage product?

World Alliance Financial offers a variety of products, ensuring the senior consumer is placed into the mortgage appropriate for their lifestyle. Non-FHA brokers join our program and often leverage our platform to grow their business and even transition to FHA broker status while being sponsored by World Alliance Financial. In addition to offering a fixed rate HECM and HECM products based on the LIBOR index, we offer three other products unique to World Alliance Financial. Our Simple60TM product* allows borrowers age 60 and older to apply for a reverse mortgage, instead of the minimum age of 62. The Flex-Margin Advantage* product line allows brokers to adjust the margins to find the best deal for their borrowers. World Alliance Financial offers the Equity Plus Advantage* product, our jumbo reverse mortgage for borrowers with higher value homes.

The Simple60 is unlike any other reverse mortgage

product. Reverse mortgages are traditionally reserved for borrowers age 62 and older, so by extending minimum age limit for a reverse mortgage, World Alliance Financial has expanded the market and allowed additional consumers to experience the benefits of a reverse mortgage. In addition, traditional reverse mortgages require both spouses to be 62 or older to take out a reverse mortgage. With the Simple60, if one spouse is between 60 and 62, the couple is still able to obtain a reverse mortgage. This proprietary product also allows seniors over the age of 62 the opportunity to borrow a smaller amount of money with lower closing costs and reduced fees. The Simple60 product benefits homeowners who are eager to access their equity earlier and provides lower closing costs than a traditional HECM reverse mortgage.

The Flex-Margin Advantage provides brokers with the ability to restructure rates and loan terms on monthly HECM reverse mortgage loans in order to better fit the needs of their customers. The product line allows a broker to design a loan based on the borrower’s needs, and reduce closing costs by balancing the loan rate. The Equity Plus Advantage reverse loan product is World Alliance Financial’s jumbo product, expanding on our current line of HECM loans and pricing

Attention

Mortgage Brokers Let World Alliance Financial give you the key to the Reverse Mortgage industry.

We provide the comprehensive training, technology and products that give NON-FHA BROKERS an opportunity to take advantage of this booming industry—and we’ll help you get sponsored, too.

Annual HECM production is growing at an average pace of 71% YOY 57% of seniors do not have adequate retirement savings

YOU ARE HERE

Can’t find your way through the financial labyrinth?

First Mount Vernon will lead you through!

Current market saturation of only 2% In 2008, 10,000 Baby boomers will turn 62 each day!

Hard Money Loans from $100,000 to $1,500,000 •Minimum Credit 400 •No seasoning

•No up front fees •48 hour closing

All loans for business or investment purposes only For an immediate online approval and commitment letter, go to WWW.FMV1.COM and fill out our loan qualifier 6019 Tower Cour t, Alexandria, VA 22304 Phone: 703-823- 6800 or 866-908-FMV1 (3681) Fa x: 703-997-2499 Paul Fogle or Ar t B ennet t First Mount Vernon is a privately-owned, equity-based lender which specializes in lending to borrowers who require expedited closings or cannot secure funding from traditional financing sources. Loans typically funded within two business days upon receipt of completed package

To get started, call us today at 1-866-746-1790 www.worldalliancefinancial.com World Alliance Financial Corp. 3 Huntington Quadrangle, Melville, NY 11747, is a member of the KBC Group. 1-800-562-6755. Arizona Mortgage Banker License Number BKBR 0109248, BKBR 0113464 and BKBR 0110100. In California: Loans will be made or arranged pursuant to the Dept. of Corporations California Finance Lenders License. Illinois Residential Mortgage Licensee (# 5969) by the Office of Banks and Real Estate, Mortgage Banking Division, 310 South Michigan Avenue, Suite 2130, Chicago, IL 60604, (312) 793-1409. MS Licensed Mortgage Company. New Jersey (800) 562-6755 Licensed Mortgage Banker, NJ Department of Banking and Insurance. OH-MB 802211.000, dba MW Mortgage Warehouse dba Lender Lead Solutions. Licensed Mortgage Banker, Registered with the Pennsylvania Banking Department & Licensed pursuant to Secondary Mortgage Loan Act. Registered Mortgage Banker-NYS Banking Department. This is not a commitment to lend. All restrictions apply. All rights reserved.

This is for mortgage professionals only; not for distribution to the general public. State licensing needed where required by law

CENTER STAGE

options through the Flex-Margin Advantage Program. Seniors with higher home values are able to access greater amounts of their home equity than with traditional reverse mortgages.

Home values are greater than the congressionally mandated cap for many of areas of the country due to the rise in home values in recent years. The home valuation cap for the Equity Plus Advantage product is $2.5 million.

dates. Are there borrowers who are retired or are 62 years or older? Are there borrowers who brokers are having trouble placing in a loan or have problems with their income? By examining the current pipeline and leads, brokers can discover many borrowers are ideal candidates for a reverse mortgage.

Brokers who are interested in the HECM Advisor Program can contact us at 1-866-746-1790 or www.wafcorp.com.

You were recently acquired by KBC, can you tell us about the recent acquisition and what it means for World Alliance Financial?

How will World Alliance Financial keep ahead of the rapidly changing technology and mortgage environments that are inherent to your business?

KBC Financial Products, a subsidiary of Belgian-based KBC BANK NV, acquired World Alliance Financial in August 2007. KBC Financial Products is a market-leading specialist in equities and equity, credit and fund-linked derivatives and structured credit reports, thus offering products and financial strength, and World Alliance Financial is a leader in marketing and distribution.

This synergistic relationship has produced a positive change in the type of reverse mortgages that are being written today. KBC Financial Products brings their strength in the capital markets and World Alliance Financial provides the products and expanded distribution channels resulting in a broad offering and wide array of reverse mortgage products across the nation.�

World Alliance Financial continues to add additional products to address the expanding reverse mortgage market. As the forward mortgage market struggles, the reverse mortgage market is flourishing and becoming more and more popular. We will continue to add and enhance our offerings keeping in mind how we can best fit the borrowers needs as the baby boomer generation turn 62 and the market increases in size. Our company strives to stay ahead of the competition with unique products found only at World Alliance Financial. We are the only provider offering a reverse mortgage product for seniors age 60 and older, and our Flex-Margin Advantage program ensures the best pricing for consumers while enabling brokers to close more business.

World Alliance Financial will continue to provide education for brokers who strive to enter into the reverse mortgage market, as well as educate senior consumers through the Senior Lending Network on the value of taking out a reverse mortgage on their home. Reverse mortgages are still a relatively new business, and we will continue to educate both brokers and consumers on the benefits of this financial tool.

How would you recommend a broker in the forward mortgage market get started in establishing a reverse mortgage business?

By establishing a reverse mortgage business, forward mortgage brokers can expand their offerings and reach out to the growing senior market. Reverse mortgages are experiencing rapid growth in the industry, and with the compelling demographics of the aging baby boomers combined with market dynamics of the retirement lifestyle, senior consumers can use the equity in their home to help pay for various life expenses. Over the next 20 years, approximately 72 million baby boomers will turn 62. As life becomes more expensive, reverse mortgages provides seniors with an opportunity to use the equity in their home to help pay for expenses and improve their quality of life.

Making a successful transition from forward to reverse mortgages requires a thorough understanding of the differences between the types of mortgages, business processes and the senior borrower. Brokers must look at their current leads and current pipeline for potential reverse mortgage candi-

* Simple 60TM, Equity Plus Advantage, Flex Margin Advantage products and other proprietary products are currently available in select states.

Private Money Money Lender Lender Private

Hard Hard Money Money Lender Lender

11.99% 30 year ďŹ xed

No prepay

$10,000-$500,000

Specializing in properties with low LTV’s, free and clear, O/O & NOO Small loans OK! Fast and friendly service Call today for an immediate quote...same day approvals

877.285.0777

www.windvestcorp.com CA, NV, AZ, WA, OR

26

April 2008

Hard Money...made easy Recently Closed Loans: • • • • • •

Commercial Lot, Largo, MD Carwash, Nashville, TN 120 Unit Apartment Cmplx 144 Unit Apartment Cmplx Multi-Use, Albany, GA Automotive Shop, GA

$ $ $ $ $ $

1.1 million 300,00 1.4 million 4.2 million 450,000 314,000

Experience with hard-to-place loans Brokers Protected

Direct Private Lender offering: • Loans from $100,000 to $10 million • Competitive Rates starting at 11% • Quick Turn-Around & Fast Closings • Up to 75% Loan-to-Value • Apartments/ Multi-Family-Purchase/ Re-fi/ Renovation • Warehouses/ Industrial/ Retail Centers • Churches/ Gas Stations/ Restaurants • Business Acquisition Loans • Broker compensation starting at .5% plus origination fee

Call Today 1-877-642-8140 www.CrownValleyLending.com SERVICING THE NEEDS OF BROKERS, INVESTORS, BUSINESS OWNERS AND DEVELOPERS FOR THE PAST 10 YEARS

1405 Old Alabama Road Suite 110 Roswell, GA 30076 O (770) 642-8140 1 (877) 642-8140 (Toll Free) f (770) 518-0823 info@crownvalleygroup.com

TIP OF THE MONTH

TIP OF THE MONTH Framing the Situation.

BY STEWART MEDNICK

T

he current state of affairs in the mortgage industry nationwide has made the profession of being a mortgage broker, banker, originator and marketer a very difficult task. In fact, it is down-right embarrassing in some situations. How I feel about it, or you feel about the industry is really insignificant. What is important is how does the general public see the industry? How do your former customers view the industry? If your livelihood depends on closing loans, then you have to find customers who are not only qualified for a loan by today’s standards, but who is also willing to work with you. In many parts of the country where foreclosure rates are record highs and public trust of mortgage professionals is at a record low, this is a daunting task. I have had many mortgage professionals contact me over the last couple months telling me of their struggling business. The most asked question is, “How do I find customers who are willing to work with me and qualify for a mortgage?” Here is a technique that could help, called ‘framing the situation.’

Times have changed so strategy must change as well.

As a Navy veteran, I think in military terms when it comes to business strategy. In battle, the enemy may attack in a different manor than anticipated. Being adaptive is important. In battle, the enemy will move and quick reaction is important. But most important is knowing your opponent so you know how to strategize. In today’s mortgage environment, we do not know our customer. They may be the same people, but they have framed the mortgage industry in a different way than four years ago. As a commander leading your troops (or as a single originator) to the mortgage battle lines armed with origination weapons, what is 28

April 2008

the strategy of attack?

Frame the situation differently. Instead of ‘attacking’ the situation with mortgage jargon and rate, term and dollar questions, take a less traveled route into the mind of the customer. I will provide three different ‘framing techniques’ and I hope this will stimulate your creative juices.

First, frame as a survey. Instead of calling, mailing or chatting to a client about refinancing or a purchase loan, simply provide a few open-ended questions to be answered. For example, “Summarize the current mortgage industry in a few sentences.” I have found that the customer’s perception of things is usually different than ours.

Find out what they think about current mortgage industry issues. Many times, if their opinion has been skewed by negative press, you will be able to clarify and explain so the customer may then be more interested in a mortgage.

Another survey question may be, “On a scale of 1 to 10, how confident are you that you can make your mortgage payments for the next six months? Why?” Perhaps people want to refinance but are deathly afraid. Be creative and think of questions that will help you, help them.

Second, frame as the trusted advisor. We have had this “trusted advisor” concept engrained into our approach since the beginning of our career. This concept should be emphasized to your customers more now than ever. Trust is a big issue. Ask questions that are compassionate, “How can I help?” “Where is the pain?” “What characteristic do you look for in a trusted mortgage professional today?”

These questions are about you directly. Frame yourself as the answer to what they need. Back your answer with statistics about your history of origination, like I spoke about in my past column. Trust is a very important factor in today’s mortgage business.

Finally, frame as an ultimate or fantasy situation, “If

TIP OF THE MONTH

there is one thing that you can change what would it be?”

“If you could redo your mortgage into any other mortgage program, what would it be?” “If I were a mortgage Genie, and granted you one wish, what would you wish for and why?”

Be creative and expand this creative extension of marketing and relationship building to set you apart from your competition. Originators are more desperate now than any other time in recent history. Desperosity is sensed by a client as negative energy and will cause them to avoid you. This creative relationship building idea may cause you to be genuinely excited and that positive energy will spill over in your presentation and cause the client to be attracted to you. Let me know your thoughts or successes and failures with this idea. Good luck!

Stewart Mednick is a seasoned mortgage banker and published author. His writing focuses on relationship development, customer satisfaction, marketing and sales techniques. If you have a comment about this column or a question for Stewart, contact him at 651-895-5122 or smednick1@netzero.net.

Go With A Lender That Fits AgriCap offers real estate and financing solutions designed with you in mind. Flexible underwriting. Rapid funding. Fast credit decisions.

• • • • • • •

AZ, CA, CO, ID, MT, NV, OR, UT, WA, WY All commercial and investment properties Loan amount: $500,000 to $5,000,000 Terms: 3 months to 36 months No prepay penalties FICO: 600+ Up to 65% LTV

Contact us at 213.542.5232 or sales@agricap.com.

Visit us anytime at agricap.com.

CREDIT AS LOW AS 600 OR LESS

agricap.com 213.542.5232

Recent Closings:

DOING DOING THE THE IMPOSSIBLE IMPOSSIBLE EVERYDAY. EVERYDAY.

Bed and Breakfast $2.6 Million Lenox Village, MA Broker Commission: $52,000 Apartment Complex $1.6 Million Memphis, Tennessee Broker Commission: $24,000 Convenience Store and Gas Station

$4.1 Million

Gilman, Illinois Broker Commission: $51,250 Golf Course Development $3.4 Million Tampa, Florida Broker Commission: $68,000 Ski Resort $2.6 Million Cortland, New York Broker Commission: $78,000 Condo Conversion $7.2 Million Kissimmee, Florida Broker Commission: $108,000

CHANGING THE INDUSTRY ONE BORROWER AT A TIME Metro Funding Corporation One Kalisa Way, Suite 310 Paramus, NJ 07652 For more information, call toll free (866) 302-6360 or visit our website: www.metrofundingcorp.com

NICHE REPORTS

PRIME Alternative Lending Solutions, Inc. 703.365.7800

Freedom Mortgage

Offering all FNMA & FHLMC Programs including Affordable Housing Programs FHA/VA CONFORMING!!!

317.537.3289

Gateway Mortgage Group 817.545.6153 A.E. is Jerry Lair

Gateway Mortgage Group 817.545.6153 A.E. is Jerry Lair

Indymac Bank

24hr UW & C2C for Platinum Accts. - Rates and service you expect from an Inc. 500 Co. - Best FHA UW team you will ever work with Aggressive Manual FHA - Jumbo - VA - FNMA - FMAC Visit www.JerryLair.com today!

Visit www.JerryLair.com for rates, forms and submission instructions!

Agency Conforming and Fannie Mae programs available, including MyCommunityMortgage™ and Flexible 97™

866.690.2240

Indymac Bank

Reverse Mortgage products available for FHA- and Non-FHAapproved customers. Flexible lending limits for higher-value homes

866.690.2240

Irwin Home Equity 888.524.7946

World Alliance Financial

Agency cash-out combo to 95% CLTV; Full Doc; Cash Back up to $300K Reverse Mortgage opportunity for non-FHA licensed brokers

877.692.7762 ext. 404

ALT–A Emigrant Mortgage Company, Inc. 1.800.EMIGRANT (364.4726) x Mid-Atlantic

True Portfolio Lender offering NINA Loan Programs, Max LTV of 75%, Loan Amounts up to $1MM+ considered. Don't forget to mention this ad when calling for special service response!

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.

TheNicheReport.com

31

NICHE REPORTS

ALT-A niches continued‌

Griffin Capital Funding 800.710.6762

Full Doc and Stated income commercial loans. 3% YSP +2 points paid to brokers 5/1, 7/1, and 10/1 LIBOR ARMs; 15- and 30-year Fixed; 10-year I/O period available for ARMs and 30-year; temporary buydowns and long-term locks also available

Indymac Bank 866.690.2242

Full Doc up to 95% LTV with a minimum 660 Decision Credit Score (DCS); Stated Income up to 90% LTV with a minimum 660 DCS; DTI as high as 50%. Purchase, No Cash Out Refinance, and Cash Out Refinance available

Indymac Bank 866.690.2242

Irwin Home Equity 888.524.7946

Agency cash-out combo to 95% CLTV; Full Doc; Cash Back up to $300K

NONPRIME Alternative Lending Solutions, Inc. 703.365.7800

Emigrant Mortgage Company, Inc. 1.800.EMIGRANT (364.4726) x Mid-Atlantic

EquiFirst Coporation 800.232.3477

EquiFirst Coporation 800.232.3477

Griffin Capital Funding 800.710.6762

M&I Home Lending Solutions 800.827.2654 ext. 2130 Sonia McClure

Non Conforming allowing cash out to 95% LTV with 620 score, Allowing unlimited 30 and 60 day lates in past 12 mos NINA financing for applicants with Ficos below 600, max LTV 60%, Loan Amounts up to $1mm+ considered. LowDoc (Income Verification) financing for foreclosure bailouts also available up to Max LTV of 60% Up to 95% LTV with a 660 Score, Full Doc Purchase. Up to 90% LTV with a 580 Score, Full Doc Refinance Loan amounts up to $750,000 Full Doc Core Product. Loan amounts up to $1.5 million Full Doc Jumbo Product Full Doc and Stated income commercial loans. 3% YSP +2 points paid to brokers 100% Stand-Alone Seconds with 660+ credit score, CO, MD, NC, NV, OR, PA, UT, VA & WA

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.

32

April 2008

NICHE REPORTS

Nonprime niches continued‌

M&I Home Lending Solutions 800.827.2654 ext. 2130 Sonia McClure

New South Federal Saving Bank 866.582.5901

Windvest Corporation 877.285.0777

100% Cash Out First Refi with 660+ credit score, up to 89.99% Purchases with 700+ credit score, No Mortgage Insurance, CO, MD, NC, NV, OR, PA, UT, VA & WA Portfolio Lender, 100% Purchase/95% Cash Out with 621 Credit Score, 90% Purchase/85% Cash Out with 550 Credit Score, 80% Purchase/75% Cash Out with 525 Credit Score, 75% Purchase/65% Cash Out with 500 Credit Score Specialists in SFRs, small to medium loan amounts. All programs are 30 year fixed with no prepay. No upfront fees and generous broker commission packages. Same day approvals

HARD MONEY 24 Capital 888.333.9923

AgriCap Financial Corporation

Specializing in commercial real estate bridge loans from $3 M to $100 Million. All property types. 24-Hour commitments. Close in as little as 5 days. Great low rates. No upfront fees beyond out-ofpocket expenses on qualified loans. www.24capital.com

213.542.5232

Commercial real estate loans, agricultural and farm loans, hard money loans, and bridge financing. Our knowledge and experience gives us greater insight into financing the real estate needs of a variety of persons and businesses

Anglo-American Financial, LLC

DIP (Debtor-in-Possession) Financing Available

434.981.1017

Anglo-American Financial, LLC 512.657.9310

Avatar Financial Group 888.896.0083

Blue Water Funding, LLC 301.656.6566 or toll free 866.551.Blue

Asset-based lending on real estate, consumer receivables and other readily marketable assets Bridge loans for improved commercial real estate from $1 million, terms up to two years with no prepayment penalties. We are a direct lender and brokers are protected. Apply online at www. avatarfinancial.com or simply give us a call Apply online at www.BlueWaterFundingLLC.com, Immediate Response, Brokers Protected and Respected

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.

TheNicheReport.com

33

NICHE REPORTS

Hard Money niches continued‌

Blue Water Funding, LLC 301.656.6566 or toll free 866.551.Blue

Crown Valley Group, Inc

Direct Lender, 65% Loan to Value, No Pre-Payment Penalty, Lending Throughout the Mid-Atlantic Region Fast turn around, Brokers paid at closing

770.642.8140

Equity Development Corp (EDC) 757.460.9096 or toll free 888.460.9096

Fairview Commerical Lending 866.634.1270

First Mount Vernon 866.908.FMV1 (3681)

First Mount Vernon

Investor Rehab Loans, Up to 73% Loan to Value, 100% Loan to Cost, Six Month Loan with No Monthly Interest Payments, No Application Fees, No Junk Fees, 660 Minimum Credit Score, Lending in PA, MD, DC, VA, NC, SC, FL, Brokers paid at closing No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours No seasoning requirements, No upfront commitment or processing fees, Minimum credit score 400 Minimal documentation required, Combined Loan-to-Values to 105%

866.908.FMV1 (3681)

Manaseh, Epharim & Associates 678.387.3230

Windvest Corporation 877.285.0777

Private hard money financing for commercial real estate investments Specialists in SFRs, small to medium loan amounts. All programs are 30 year fixed with no prepay. No upfront fees and generous broker commission packages. Same day approvals

ADVERTISE YOUR NICHES HERE WITHIN Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.

34

April 2008

NICHE REPORTS

COMMERCIAL 24 Capital 888.333.9923

Specializing in commercial real estate bridge loans from $3 M to $100 Million. All property types. 24-Hour commitments Close in as little as 5 days. Great low rates. No upfront fees beyond out-ofpocket expenses on qualified loans. www.24capital.com

AcuPen Financial

High LTVs, and low debt coverage ratio requirements

305.666.1879

AgriCap Financial Corporation 213.542.5232

Avatar Financial Group

Commercial real estate loans, agricultural and farm loans, hard money loans, and bridge financing. Our knowledge and experience gives us greater insight into financing the real estate needs of a variety of persons and businesses

888.896.0083

Great rates on commercial real estate loans, fully amortizing up to 25 years. Most property types considered including hotels, multifamily and special-use. Full doc is required for these competitive rates. Please call to request a rate sheet

Commercial Funding Corp

Stated & Full doc Commercial Lenders, Up to 90% Financing, Will consider credit scores below 600, Most property types considered

973.471.2229

Crown Valley Group, Inc

Fast turn around, Brokers paid at closing

770.642.8140

Fairview Commercial Lending 866.634.1270

Griffin Capital Funding 800.710.6762

Indymac Bank 866.908.3279

Ocean Capital 877.337.3757

No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours YSP Commercial Loans, Full doc and Stated income. Earn up to 3% YSP + 2 points.

Loans for Multifamily / Apartment Complexes (5+ units), Mixed Use (if Commercial is less than 35%), and Mobile Home Parks; purchase and refinance (including cash out); Hybrid ARMs and fixed product choices We're the real deal for subprime owner-occupied commercial mortgages to $2M. Credit scores to 500. Up to 90% financing. Low debt-service coverage. Stated & investment programs. Difficult-tofinance industries welcome

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.

TheNicheReport.com

35

NICHE REPORTS

Commercial niches continued…

Manaseh, Epharim & Associates

Fast, flexible funding for all your commercial financing needs

678.387.3230

Metro Funding Corp 866.302.6360

Fast closing, no points upfront, all commercial properties including land, acquisitions, refis, and development loans

CONSTRUCTION / REHAB 24 Capital

Specializing in commercial real estate bridge loans from $3 M to $100 Million. All property types. 24-Hour commitments. Close in as little as 5 days. Great low rates. No upfront fees beyond out-ofpocket expenses on qualified loans. www.24capital.com

888.333.9923

Bismark Mortgage 503.741.7334

Equity Development Corp (EDC)

Residential construction loans for custom, owner-builder, spec and construction completion projects. All programs Stated Income/ Stated Asset. Nationwide lender.

757.460.9096 or toll free 888.460.9096

Residential Rehab Loans, Non-Owner Occupied Only, No Prepayment, No Monthly Interest Payments, Weekly Inspections and Construction Draws, No Junk Fees & No Inspection Fees, Online Draw Requests, 660 Minimum Credit Score, Lending in the Mid-Atlantic

Manaseh, Epharim & Associates

Private lender specializing in commercial real estate loans nationwide and internationally

678.387.3230

New South Federal Savings Bank 866.582.5901

Conforming and Non-Prime, Single Close CP, LTV’s up to 100% of Construction Cost, Full Doc only

ADVERTISE YOUR NICHES HERE WITHIN Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.

36

April 2008

LENDER & RESOURCE DIRECTORY

24 Capital Corp. www.24capital.com Two University Plaza, Suite 206 Hackensack, NJ 07601 [phone] 888.333.9923 [fax] 201.881.7221 [e] info@24capital.com

AcuPen FINANCIAL, LLC The Premier One-Stop Commercial Mortgage HUB www.acupenfinancial.com

AgriCap FINANCIAL corporation www.agricap.com 350 S. Figueroa Street, Suite 501 Los Angeles, CA 90071 Contact: Loan Submissions [phone] 213.542.5232 [fax] 213.687.8333 [e] sales@agricap.com

a la mode, inc. www.alamode.com

alternative lending solutions, inc. www.alendingsolution.com 9625 Surveyor Court #330 Manassas, VA 20110 Contact: Shannon Johnson [phone] 703.365.7800 [fax] 703.365.7801 [e] sjohnson@alendingsolution.com Anglo-American Financial www.anglofinancial.com 675 Berkmar Court Gardy Bloemers: 434.981.1017 [e] gardybloemers@anglofinancial.com Tom Finnegan: 512.657.9310 [e] tomfinnegan@gmail.com

AppraiserLoft www.appraiserloft.com [phone] 877.229.7799 [fax] 877.797.0280

ASCENT HOME LOANS, INC. www.ascenthomeloans.com 6465 S. Greenwood Plaza Blvd.

Englewood, CO 80111 [phone] 866.467.3157 ext. 2605

AVATAR financial group www.avatarfinancial.com 100 Wall Street Seattle, WA 98121 Contact: Allison Payne, Loan Analyst [phone] 888.896.0083 [fax] 206.728.5993 [e] loans@avatarfinancial.com

BISMARK MORTGAGE www.bismarkmortgage.com 10500 NE 8th St. Suite 700 Bellevue, WA 98004 Contact: Ron Maes [phone] 503.741.7334 [fax] 425.283.5005 [e] ron@bismarkmortgage.com

BlueWater Funding, LLC www.bluewaterfundingllc.com 4925 St. Elmo Avenue Bethesda, Maryland 20814 [phone] 301.656.6566 [toll free] 866.551.blue [fax] 240.766.0609 [e] info@bluewaterfundingllc.com

THEBOARDNETWORK.COM www.mortgageboard.com www.titleboard.com

www.bankingboard.com www.creditunionboard.com www.escrowboard.com 101 Continental Blvd.

16 Floor, Suite 1657 [phone] 866.452.8800 [fax] 866.452.8799 Contact: Julie Messina or Jodie Messina [e] info@theboardnetwork.com COMMERCIAL Funding corp. www.commercialfundingcorp.com 335 Clifton Ave. Suite 201 Clifton, NJ 07011 Contact: Enrique Gomez [phone] 973.471.2229 [fax] 973.471.2266 [e] gomez@commercialfundingcorp.com

credit plus inc. www.creditplus.com 31550 Winterplace Pkwy Salisbury, MD 21804 [phone] 800.258.3488 [fax] 800.258.3287 [e] beyondbundled@creditplus.com Crown valley group, inc. www.crownvalleygroup.com 1405 Old Alabama Rd. Roswell, GA 30076 Contact: Robert Pick [phone] 770.642.8140 [fax] 770.518.0823 [e] rpick@crownvalleygroup.com

emigrant mortgage company www.emigrantmortgage.com 7 Westchester Plaza Elmsford, NY 10523 [phone] 1.800.emigrant ext "mid-atlantic" Contact: Terry Auth [e] AuthT@emigrantmortgage.com

equifirst corporation www.equifirst.com 500 Forest Point Circle Charlotte, NC 28273 [phone] 800.232.3477 [e] results@equifirst.com continued on next page TheNicheReport.com

37

LENDER & RESOURCE DIRECTORY CONT.

EQUity development corporation (EDC) www.equitydevelopmentcorp.com 448 Viking Drive, Suite 380 Virginia Beach, VA 23452 Contact: Shawn Skiff [phone] 757.460.9096 [fax] 757.460.4079 [e] info@equitydevelopmentcorp.com

Fairview Commercial Lending www.fairviewlending.com 1932 North Druid Hills Road Suite 250 Atlanta, GA 30319 [phone] 866.634.1270 [fax] 404.634.0319

first fINANCIAL mortgage service, LLC www.ffmloans.com [phone] 571.261.2354 [fax] 703.991.0597 [e] kristen@ffmloans.com

First Mount Vernon I.L.A. www.FMV1.com 6019 Tower Court Alexandria, VA 22304 [phone] 703.823.6800 [fax] 703.997.2499

freedom mortgage www.freedommortgage.com 907 Pleasant Valley Ave. Contact: Angel Bell [phone] 800.220.3333 [fax] 866.816.3538 [e] angel.bell@freedommortgage.com

GATEWAY MORTGAGE GROUP www.jerrylair.com [e] jlair@gatewayloan.com AE: Jerry Lair [phone] 817.545.6153 [fax] 918.392.8364 griffin capital funding www.ysploans.com 1135 Heatherstone Dr. Suite 102 Fredericksburg, VA 22407 Contact: Mike Brewer [e] mbrewer@gcfunding.com [phone] 540.548.1001 ext. 105 [fax] 540.548.1117

NEW SOUTH FEDERAL Savings bank www.newsouthfederal.com/wholesale 210 Automation Way Contact: Randy Brown [phone] 866.582.5901 [fax] 205.951.7111 [e] randyb@newsouthfederal.com

IndyMac Bank www.indymacb2b.com 3465 East Foothill Boulevard Pasadena, CA 91107 [phone] 866.419.4639

ocean capital www.oceancapitalonline.com 2 Altieri Way Warwick, RI 02886 Contact: Christina Agonia [e] information@oceancapitalonline.com [phone] 877.337.3757 [fax] 401.739.9711

irwin home equity www.ihepartners.com 12677 Alcosta Blvd., Suite 500 [e] wholesalelending@ihe.com [phone] 888.524.7946

M&i home lending solutions www.mihomelendingsolutions.com Contact: Sonia McClure [e] mihls.brokersupport@micorp.com [phone] 800.827.2654 ext. 2130 [fax] 800.277.2569 manaseh, epharim & associates www.meandassociates.com 5932 Hugh Howell Rd. Suite 109 Stone Mountain, GA 30087 Contact: R.D. Walker [e] info@meandassociates.com [phone] 678.387.3230 [fax] 678.302.6444

metro funding corp www.metrofundingcorp.com

38

April 2008

One Kalisa Way, Suite 310 Paramus, NJ 07652 Contact: Jennifer Smith [e] jennifer@metrofundingcorp.com [phone] 866.302.6360 [fax] 201.262.6910

V12 GRoup www.dmaleads.com 5215 NW 33rd Avenue Contact: Mike Giambattista [phone] 561.807.6909 [fax] 877.984.9401 [e] mgiambattista@v12group.com

windvest corporation www.windvestcorp.com 3131 Camino Del Rio N Suite 1030 San Diego, CA 92108 Contact: Katiana Jimenez [phone] 877.285.07777 ext 2 [fax] 619.285.0741 [e] katiana@windvestcorp.com world alliance financial www.worldalliancefinancial.com 3 Huntington Quadrangle, Suite 303N Melville, NY 11747

TM

TM

TM

"TheNicheReport is nationally distributed to over 18,000 real estate finance professionals."

Presort Standard U.S. POSTAGE PAID PERMIT #379 BOLINGBROOK, IL

BODA Publishing, LLC 6016 Alderdale Place Haymarket, VA 20169

Attention

Mortgage Brokers Let World Alliance Financial give you the key to the Reverse Mortgage industry.

We provide the comprehensive training, technology and products that give NON-FHA BROKERS an opportunity to take advantage of this booming industry—and we’ll help you get sponsored, too.

Annual HECM production is growing at an average pace of 71% YOY 57% of seniors do not have adequate retirement savings Current market saturation of only 2% In 2008, 10,000 Baby boomers will turn 62 each day!

To get started, call us today at 1-866-746-1790 www.worldalliancefinancial.com World Alliance Financial Corp. 3 Huntington Quadrangle, Melville, NY 11747, is a member of the KBC Group. 1-800-562-6755. Arizona Mortgage Banker License Number BKBR 0109248, BKBR 0113464 and BKBR 0110100. In California: Loans will be made or arranged pursuant to the Dept. of Corporations California Finance Lenders License. Illinois Residential Mortgage Licensee (# 5969) by the Office of Banks and Real Estate, Mortgage Banking Division, 310 South Michigan Avenue, Suite 2130, Chicago, IL 60604, (312) 793-1409. MS Licensed Mortgage Company. New Jersey (800) 562-6755 Licensed Mortgage Banker, NJ Department of Banking and Insurance. OH-MB 802211.000, dba MW Mortgage Warehouse dba Lender Lead Solutions. Licensed Mortgage Banker, Registered with the Pennsylvania Banking Department & Licensed pursuant to Secondary Mortgage Loan Act. Registered Mortgage Banker-NYS Banking Department. This is not a commitment to lend. All restrictions apply. All rights reserved.

This is for mortgage professionals only; not for distribution to the general public. State licensing needed where required by law