TNR - August 2009

Issue 026 August 2009 TheNicheReport.com 5661_KF_Twist_NicheReport_Ad2

7/23/09

5:12 PM

Page 1

Kennedy Funding is a registered trademark of Kennedy Funding, Inc.

It’s a twisted economy out there.

We’ll help you straighten things out.

HOW CAN WE FUND YOU? While other lenders have all but stopped lending, Kennedy Funding continues closing loans… and closing them fast.

Learn more on page 7.

14 New Playbook for Commercial Financing Lending options while banking rules shake out.

Kids Don't Mortgage Credit ABA President 16 The 24 50 Stand a Chance Certificates Edward Yingling Web 2.0 is now open for business

by Martin Andelman

A blast from the past!

Hubris never before contemplated.

When you are ready to take your business to the next level, you are READY for Guaranteed (888) 329-GHMC

EXECUTIVE OFFICES:

Two Gannett Drive, Suite 110, White Plains, NY 10604 CALL: Louis Tesoriero at (914) 696-3400 www.joinguaranteed.com

Residential Mortgage Banking Branch Program for Professionals Guaranteed, an established and well-funded Mortgage Banker since 1992, is positioned to continue its prominence in the industry. As a leading FHA Direct Endorsed Lender, we underwrite all files in-house. This allows for faster approvals, common-sense underwriting and timely closings. We are actively seeking relationships with productive mortgage teams and entrepreneurial mortgage professionals.

EXECUTIVE OFFICES:

Two Gannett Drive, Suite 110, White Plains, NY 10604 CALL: Kelley Berkheiser at (443) 418-7213 www.joinguaranteed.com

CONTENTS

Issue 026

16

August 2009

The Kids Don't Stand a Chance MARTIN ANDELMAN Web 2.0 is now open for business.

NICHE REPORTS agency & FHA

pg 38

REVERSE

pg 40

HARD MONEY & NON-PRIME

pg 42

JUMBO

pg 43

CONSTRUCTION/REHAB

pg 44

COMMERCIAL

pg 45

FOUNDER & PRESIDENT Robert Pegg robert@nichereportonline.com CO-FOUNDER & PRESIDENT David Pegg david@nichereportonline.com MANAGING EDITOR Stewart Mednick stewart@nichereportonline.com

13

Processing vs.

Negotiating Brian Suder President and Founder Home Rescue Program Processors are paper-pushers not loan negotiators.

14

New Playbook for Commercial Financing Marc Porter founder and CEO Porter Capital Group Lending options while banking rules shake out.

24

Mortgage Credit Certificates j. daniel moralez www.mortgagecurrentcy.com A blast from the past!

6

August 2009

32

EDITORIAL / CONTENT MANAGER Kristen Moser kristen@nichereportonline.com

Center Stage with Express Notary Service The Niche Report Point, Click - Sign!

50

Bringing up the REAR: ABA President Edward Yingling Martin Andelman Hubris never before contemplated.

DEPARTMENTS

09 10 28 34 47

NOTE FROM THE FOUNDER/ letters to the editor CALENDER OF EVENTS RULES & REGULATIONS HEADLINES TIP OF THE MONTH LENDER & RESOURCE DIRECTORY

ACCOUNTING MANAGER Shawna Ingram shawna@nichereportonline.com Advertising Reps Jessica Grizzle Jessica@nichereportonline.com Mark Moulton mark@nichereportonline.com Production Manager Henry Suchman henry@nichereportonline.com Production Assistant Dawn Exner dawn@nichereportonline.com ADVISORY BOARD Randall Marquis Senior Editor, The Mortgage Lender Implode-O-Meter COLUMNISTS Martin Andelman Martin@nichereportonline.com Stewart Mednick Stewart@nichereportonline.com Karen Deis www.mortgagecurrentcy.com CONTRIBUTING AUTHORS J. Daniel Moralez Marc Porter Brian Suder

We’ll get straight to the point.

Kennedy Funding is a registered trademark of Kennedy Funding, Inc.

We can get you millions –fast.

There are very few certainties in today’s economy. The exceptions? Kennedy Funding does have millions to lend.

And we continue to close loans fast. Do you have a deal that involves special circumstances? Don’t waste time with traditional lenders. Point yourself to Kennedy Funding…and don’t look back.

HOW CAN WE FUND YOU? Borrow $1 million to $100 million and more – fast. Commercial loans for land development, income producing properties, acquisitions, bankruptcies, workouts, foreclosures

Published monthly by BODA Publishing, LLC PO Box 494, Bentonville, AR 72712 Phone: 866.964.2695 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.

Send address change requests to info@nichereportonline.com.

Remember to include the old address.

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

ADVERTISEMENTS To inquire about advertising in The Niche Report, please call 866.964.2695, 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 stewart@nichereportonline.com or call 866.964.2695. 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 stewart@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.

NOTE FROM THE FOUNDER

Due to overwhelming response to our feature article on HVCC last month, I have reserved this page solely for comments from our readers.

If you would like to voice your opinion, please email us your comments at info@nichereportonline.com.

Keep up the fight,

Robert Pegg

Letters to the Editor Cuomo’s Crossing: an outsider’s appraisal of the new HVCC

by Martin Andelman Martin: I read your article the other day. It was OUTSTANDING!!

Clearly the best depiction of the issue I've seen from any writer.

Marc S. Savitt, CRMS, Immediate Past President Vice Chair-Government Affairs Committee National Association of Mortgage Brokers We’re happy you enjoyed the article Marc, how ‘bout making us the “unofficial” magazine of NAMB? Fabulous article about the HVCC crisis! I couldn't agree more with your interpretation! Being in this business for 12 years, I am amazed at the stupidity of this system. Thank you for making me feel like someone is listening!!

Joy M. Berman CT Prospect Mortgage Group, LLC Just wanted to say how much I enjoy the articles being written by Martin Andelman. Witty, insightful and timely. What more can I say except that he is kinda cute too. I look forward to every month’s publication. Keep up the good work.

Maureen Spiegleman Cherry Creek Mortgage Company Mr. Andleman, I just finished reading the article you wrote for the The Niche Report: An Outsider's Appraisal of the New HVCC. I wanted to let you know I'm so delighted in your sense of humor and was impressed at the thorough research you obviously did. That was terrific!

I also want to inform you of another disastrous aspect of the HVCC. Nearly everyone seems to be completely unaware of this, and I am disgusted and appalled that those who are aware of it....are keeping silent.

First, state licensed and certified appraisers are required to be used in order for a mortgage appraisal to comply with the new HVCC. Under the requirements of their licenses, these appraisers must conform to the Uniform Standards of Professional Appraisal Practice (USPAP).

Appraisal Management Companies are assigning appraisers to properties out-of-town and sometimes out-of-state. But, the USPAP prohibit an appraiser from appraising a property in a market he/she is unfamiliar with. Thus, these appraisers are violating USPAP and violating the HVCC. The lender ends up with an appraisal that is NOT

HVCC compliant! The loan applicant who gets turned down doesn't know what's happening, nor does their mortgage broker, nor does their real estate agent. All believe there's no recourse! Sometimes, the loan applicant has even paid for multiple non-compliant appraisals.

The appraisers aren't telling anyone they are violating the USPAP and violating the HVCC, as they'll lose appraisal orders. The unlicensed and unregulated AMCs aren't telling anyone, because they don't have to and because they'll lose business. Worse, there is virtually NO enforcement of current appraisal violations across our country because the states are so understaffed. When it is first discovered that an out-of-area appraiser has been assigned, ALL parties (seller, buyer, listing agent, selling agent, mortgage broker) should immediately contact the lender (with written follow-up) to demand that a local appraiser be used. Otherwise, the appraisal will not comply with the HVCC. Mr. and Mrs. Consumer are screwed again!

Thank you, again, for your article and for your courteous time and attention reading this.

Barb Torres ASA Accredited Senior Appraiser American Society of Appraisers California Certified General Real Estate Appraiser I would like to compliment you on your recent article in the Niche Report-Cuomo’s Crossing, An Outsider’s Appraisal of the New HVCC Rules. Your article is well written, amusing and strikingly honest. It uncovers the irony of this ridiculous agreement to placate the Appraisal Management Companies at the expense of the consumer. I am a 30 year real estate appraiser veteran and own a large regional appraisal company in Ohio. Over the years I have developed my company based upon trusted relationships with bank officers, mortgage brokers and real estate agents. The purpose of my profession is to develop an opinion of value based upon the actions of the real estate market. The metaphoric wall constructed by the HVCC not only erodes into my business but creates an impenetrable membrane for accurate valuation analysis and development.

That being said, I would like to note a few important points misrepresented in your article: 1. The Valuation Protection Institute has never been established.

The purpose of this agreement was to protect appraisers, consumers and users of appraisal services from pressure and coercion but there is no mechanism for enforcement. Without the Valuation Protection

- letters continured on page 10

TheNicheReport.com

9

CALENDAR OF EVENTS - letters continued from page 9 Institute I believe the agreement is null and void.

2. The HVCC does not mandate the use of appraisal management companies. HVCC does stipulate a firewall between those ordering appraisals and the appraiser but the mandatory use of appraisal management companies is a well spun fantasy promulgated by TAVMA (the Title Appraisal Vendor Management Association) 3. The final version of the HVCC does not put limitations on the ownership of Appraisal Management Companies by banks.

Ronald Stickelman SRA President

Crisis… What Crisis?

By Todd Duncan Todd reminds me of my grandfather. These are two of my grandfather’s favorite quotes, “it’s not how life treats you it’s how you treat life.”

The second one requires me to put it into context of the situation. Here we go, due to my grandfather’s age he had to put his farm into the government’s soil bank sometime in the last 1950s. The government required him to plant 5000 pine trees so he wasn’t able to grow crops. Once he told me we need to plant the 5000

pines trees I asked the question, “How are just the two of us going to plant so many trees”? He turned to me with a calm look and said, “One at a time”. I will never forget that statement. Anytime the task seems to be overwhelming I think to that moment with my grandfather standing in the field and saying to me, “one at a time.”

Todd and my grandfather must have known each other in a prior life. Keep the correct attitude and go about your business one step at a time.

Tom Champion National Sales, Ratelink

Upcoming Key Dates & Events: august & September August 2009 S M T W T

F

S

2

7

8

3

4

5

6

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 September 2009 S M T W T

F

S

1

2

4

5

6

7

8

9 10 11 12

3

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 August 28 CAMB - CAMB LAM, BOD Meeting 8:30 am - 10:00 am, Los Angeles Metro info@camblam.com GB Mortgage Solutions 407 S. La Brea Ave, Inglewood, CA 90301 310-590-1235 September 3 MBA - CampusMBA's Train the Trainer Workshop LIVE Online Workshop Washington, DC E2901804C http://store.mortgagebankers. org/ProductDetail.aspx?product_ code=E2901804C/REGIS Register Info: Call CampusMBA at (800) 348-8653 for questions.

Sponsor Info: Call Andy Stack at (202) 557-2912 to learn about sponsorship opportunities.

10

August 2009

September 9 AMB - SV BOD Meeting, Silicon Valley, 9:00 am - 11:00 am http://www.siliconvalleycamb.com Silicon Valley Chapter Board meetings are held every second Wednesday of the month at SCCAOR, 1651 No. First St., San Jose, 95112. Visitors are welcome. Please rsvp to Chapter President, Cathy Warshawsky at 408-371-2172 or cathy@bayarealoan.com.

SCCAOR, 651 No. First St., San Jose, CA 95112, 408-445-8500, x5087

September 9 CAMB - CAMB SD BOD Meeting, San Diego 5:00 pm - 7:00 pm Organizer: Karen Satterwhite – coordinator@cambsd.org http://www.cambsd.org/ Stewart Title of California 7676 Hazard Center Road, 14th Floor San Diego, CA 92108

September 9 MBA - FHA Fundamentals Workshop Washington, DC 1331 L Street, NW, Washington, DC E2901618E http://store.mortgagebankers. org/ProductDetail.aspx?product_ code=E2901618E/REGIS Register Info: Call CampusMBA at (800) 348-8653 Sponsor Info: Call Andy Stack at (202) 557-2912 to learn about sponsorship opportunities

September 10 MBA - FHA Underwriting & Operations Workshop - 1331 L Street, NW, Washington, DC E2901620E http://store.mortgagebankers. org/ProductDetail.aspx?product_ code=E2901620E/REGIS Register Info: Call CampusMBA at (800) 348-8653 Sponsor Info: Call Andy Stack at (202) 557-2912 to learn about sponsorship opportunities September 15-17 MBA - Multifamily Property Inspection Workshop - Phoenix, AZ Arizona State University Mercado Phoenix, AZ E2901796C http://store.mortgagebankers. org/ProductDetail.aspx?product_ code=E2901796C/REGIS Register Info: Call CampusMBA at (800) 348-8653.

Sponsor Info: Call Andrew Stack at (202) 557-2912 September 17 MBA/Metro. Washington Commercial Real Estate Finance Council Fall Seminar, 1:00 pm Naval Heritage Center, Washington, DC This half-day seminar will address the current dynamics of the commercial real estate finance industry. The afternoon ends with a cocktail reception. (301) 924-0633 September 25 CAMB - CAMB LAM, BOD Meeting, Los Angeles Metro, 8:30 am - 10:00 am Organizer: Los Angeles Metro info@camblam.com GB Mortgage Solutions 407 S. La Brea Ave., CA 90301 (310) 590-1235

Not just a(nother) website company Mortgage XSites

XSellerate

23.6

24.4

% MoRE LEADS pER SitE thAN LASt yEAR

SureDocs

MiLLioN ADS SENt by MoRtgAgE pRoS

2.51

MiLLioN SEcuRE E-SigNAtuRES AppLiED

Celebrating 24 years... and counting More than 100,000 professionals rely on our products to power nearly 50% of all residential real estate transactions every day. Talk to any of them and you’ll see they’re exceptionally loyal and enthusiastic about our strengths. Ever wonder why?

For some, it’s because for the last 24 years we’ve continued to develop tools that help you be more efficient during boom years, bust years and everything in between. When things are busy you need to be as efficient as possible so you turn out more loans. And when times are slow you need to spend less time processing loans so you can focus on capturing more business. but no matter what the market is like you need tools that empower you to adapt quickly and seize any given opportunity.

For others, it’s our 24x7x365 support.

Our headquarters is always staffed with “real live people” charged with getting you productive immediately.

Still for others, it’s the peace of mind that comes from our iron-clad, 100 day, 100% money back guarantee. A vendor can’t offer that unless their products and services are up to the challenge, which is why others don’t do it.

There are many more reasons, but it’s time to create your own. Visit our website, look over our products, then call us and see for yourself why we’re more than just a(nother) website company. To make it even easier, we’re offering 24% off during our anniversary celebration — just enter “TAKE24” at checkout. you really have nothing to lose. As we said, we even guarantee it.

1-800-ALAMODE • www.alamode.com/nr AD CODE: MANRXSME0809 a la mode and its products are trademarks or registered trademarks of a la mode, inc. Other brand and product names are trademarks or registered trademarks of their respective owners. All prices, terms, policies, and other items are subject to change without notice. Copyright ©2009 a la mode, inc.

Mortgage XSites

Sophisticated, rich, hassle-free websites

XSellerate

Automated marketing turns leads into sales

SureDocs

E-doc signing and delivery solution

FleXApp1003

Intuitive online 1003 that works on any site

Daily Rate Lock Advisory

Provide expert rate float/lock advice

Mercury Network — FREE

Free appraisal order management solution

Take 24% off your order through August 28th.

Enter TAKE24 at checkout.

100 DAy MONEy-bACK guARANTEE

Processing vs. negotiating Processors are paper-pushers not loan negotiators

by Brian suder

O

ver the past year many start-up companies jumped into loss mitigation and attempted to define their place in this industry. In reality, 90% of the people involved with loss mitigation start-ups are green and don’t fully understand the complexities associated with loan modification. They make statements like, “I hire this company to do our processing”. If the people running these companies think negotiating a home loan from foreclosure is the duty of a processor, then they are in for a surprise.

A three (3) phase process is the backbone for success.

Phase 1: Hire a team of seasoned and over qualified underwriters. These underwriters should have all previously worked for some of the top lenders including Wells Fargo, Countrywide, Option One, New Century.... the list goes on. Their qualifications should include 10+ years of underwriting experience, passing strict personality tests, and organizational assessments. Why underwriters you may ask? Seasoned underwriters have the analytical mind set, necessary to negotiate a home loan. In fact, most lenders hire former underwriters for their own loss mitigation departments. Underwriters know how to communicate with fellow underwriters.

The bottom line is the lender only cares for what is in its best interests. The lender also has a fiduciary responsibility to its stock holders and investors. Map out the full costs and ultimately the loss the lender will endure by foreclosing on a homeowners’ loan in today’s depressed real estate market. Customize each proposal for each individual homeowner and show the lender why a performing loan is better for them than a foreclosure.

Phase 2: Most loan modifications are negotiated in phase one, but sometimes lenders want to play hard ball. When this happens, bring out Forensic Loan

Auditors. These analysts conduct a full review of the homeowners’ loan documents to reveal lender mistakes in RESPA, ECOA, HMDA, TILA and APR. Because such a large number of loan docs were drawn between 2001 to 2007, many mistakes were made during this time.

Show the lender the serious legal mistakes it made and use the results of this audit as leverage. Many times this additional tool provides the weight necessary to obtain the modification.

Phase 3: Bring out the attorneys. If the lender is still not being nice, bring in an attorney to take over. One should not bring in attorneys until phase 3 for a variety of reasons. Primarily, you should have a good relationship with the major lenders and service providers. Attorneys take a vastly different approach. They show the lender all of its legal blunders reveled in the audit. They aggressively advise the lender as to what it did wrong. Lenders don’t like hearing that. Furthermore, a legal team can pursue a series of other tactics that includes asking for the original note. This simple request can stall a sale date for well over a year. By this time, attorneys usually have enough ammo to pursue a case against the lender. In such cases, the settlement typically results in a loan modification.

Brian Suder is the President and Founder of Home Rescue Program, headquartered in Culver City CA. A seasoned real estate and mortgage expert, Brian was mentored by one of the nation’s leading experts in the loan modification industry, a former Commissioner of HUD. To date, Brian and his team has helped thousands of homeowners avoid foreclosure through successful loan modifications. Contact Brian at Brian@HomeRescuePrograms.com or via phone at 866-832-7000.

TheNicheReport.com

13

New playbook for commercial financing Lending options while banking rules shake out. by marc porter

T

he playbook for banks has disappeared. Why? The Federal Reserve Bank, under the directive of the new presidential administration, infused mind-boggling capital at the speed of light to shore up a crumbling economy. With that came an ambiguous borrower’s agreement between the institution and the Feds.

With more questions than answers, the rules continue to change daily. In less than five months, no one, especially the federal government, could have possibly performed the due diligence necessary. The rules of the game are in flux.

Lack of clear direction whether to loan or to invest, have created confusion. Is it any wonder there is volatility and angst in the marketplace?

It will likely take another 12 to 24 months for new rules to be developed and implemented to stabilize the economy and restore consumer confidence. So what do we do now? The first order of business IS business.

The way we carry on business has changed; temporarily or perhaps for the long haul. Banks will be vigilant. Clients will be required to meet higher standards and adhere to stricter guidelines for commercial financing.

Due diligence will require that clients have substantial collateral, and proof that they are credit worthy with a low degree of risk as a prerequisite for a loan. In many cases the money the bank is working with is no longer just their own. It is government infused capital, and with that comes another layer of scrutiny—yet to be fully determined. Nonetheless, the unknown makes the banking industry even more skittish when it comes to lending. Big brother is watching. But watching what?

They can only guess. In the interim, banks are trying to create a safety net of sorts. Banks are implementing their own security measures. They are limiting their lending, and focusing attention on core customers that add value

14

August 2009

to the bank. This creates stability, lowers risk, and builds the capital that banks must have to get out from under the need for federal funds and scrutiny.

Gone are the days when banks would lend on a per project basis, a single retail development, an apartment complex, or a commercial construction deal. Today, they are looking for a banking relationship with their commercial customers. This is much more than a nice quarterly chat about how business is going. They want a client’s complete portfolio of money management: checking, savings, deposits, and treasury management.

Not only does it provide fee income for the bank, it allows banks to keep tabs on how a business is progressing. They can see deposits, cash flow, growth, and stability. In other words, their due diligence happens daily, not just when a loan request comes in.

Bridge loans and other higher risk lending options will likely evaporate from a bank’s portfolio of available financing products. These fee-based products were a source of income for banks, and will need to be replenished through other means; enter the “banking relationship” era.

Clients don’t like it, banks aren’t happy. But, it’s a new day, and like it or not change has occurred. Now what?

Most businesses have never had to look outside a bank for commercial loans. Many businesses, and banks, refer to other independent commercial lending institutions when their needs or requirements don’t meet the restrictions set by a traditional lender. Independent commercial lenders are funded by private investors for the purpose of lending to small and mid-size businesses.

If not governed by federal restrictions, they can offer a variety of lending instruments to ensure a finance option meets the particular needs of the business and do it quickly. Quite often, accounts receivable or bridge

loan financing can provide the best solution. This is not permanent financing, but alternative financing for a temporary situation that cannot wait.

Accounts receivable financing or a Bridge loan is shortterm, 12 to 36-month financing used as start-up funds, to stimulate fast growth, handle a crisis situation, a tax issue, or a production/deliverables situation. Assets are used as collateral in exchange for immediate funding. This type of loan has a place and distinct purpose regardless of economic conditions. Here’s a recent example of what is being talked about: An electrical company applied for a bridge loan to grow their business nearly ten years ago. Now, with the green movement surging, the company saw another opportunity.

With more of its customers looking for ways to save money and save energy, the time was ripe to launch a new company.

The electrical company went back to its lender for start-up funds to launch this new business. It allowed the company to be cash positive in the first month of operation. The working capital gave it leverage to negotiate big discounts by paying suppliers in advance, and subcontractors early. It freed up a line of credit, and quick pay gave the electrical company a good reputation and instant credibility as a new business.

The company also knew it was very unlikely for a bank to finance a start-up given the current market conditions.

Although the company may have paid a somewhat higher rate for this type of financing, it was able to make up that difference or even come out ahead because of the big cash advantage that was yielded.

Some businesses are using bridge loans to take advantage of great deals on land, buildings and equipment purchases. Others need a low risk solution to stabilize their business through a temporary situation. Yes, the interest rate will likely be higher than what you may have paid elsewhere in a stable economy. It may not be the ideal price or the ideal solution. But, that was then... this is now. Banks have had to cut their losses, shore up reserves, and tighten their lending practices. Yet, ample funds are readily available from reputable independent lenders.

Businesses and consumers alike would do well to embrace change, weigh the alternatives and find new rules for a new playbook. Then we can get on with the business of living.

Marc Porter is Founder and CEO of the Porter Capital Group, recognized in 2008 among Inc.’s 5000 fastest growing U.S. companies. Headquartered in Birmingham, AL, with offices throughout the southeast and New York; mporter@ portercap.net, 205-322-5442

Agricap Programs At-A-Glance Crop input Loans: fruits, vegetables, nuts, and livestock Financing Solution Real Estate: orchards, row crop, ag facility

Clients

Growers, Importers / Exporters, Packers, Distributors, Wholesalers, Processors, Food Industry Supply chain

Transaction Size

$250,000 to $100,000,000

Industries

Produce (including perishables), meats, and seafood; Food, Beverage, and Agricultural

Coverage

11 western states

For Complete details on all our loan programs, including our real estate programs for land, commercial, and investment properties - and our specialty business financing programs for the food, beverage, and agricultural industries - contact us today at 213.542.5232 or realestate@agricap.com.

The Kids Don’t Stand a Chance

Web 2.0 is Now Open for Business

A

by martin andelman

lthough I did not realize it at the time, my first exposure to Web 2.0 technologies came along with a discussion about the prevalence of pedophilia. Our daughter was about eleven years old at the time, and she wanted to be allowed to join her friends who were using MySpace. We, her parents, immediately envisioned our home on Dateline NBC with Chris Hansen, as some sick child predator was being led to the police car in handcuffs.

“No,” my wife said before I was done imagining beating the predator to death with a baseball bat… oh my… did I just say that out loud? I’m sorry. Anyway, we did what any strong, rational, confident and concerned parents would do in that situation… we ignored it as long as we could, and then called other parents to see what they had to say about it.

It all worked out just fine in the end, but for a few weeks all the parents were talking about it… until we discovered that you could keep a MySpace page private… or maybe it was just that the other parents gave in, so we did as well… I honestly can’t remember which.

The point is that MySpace is a social network, and social nets, as they’re referred to by those “in the know,” are a big part of what is now being widely referred to as Web 2.0. Of course, social nets are only one of the components in Web 2.0’s bag of new tricks, there’s also blogging, bookmarking, podcasting, video sharing, and more, including the incredibly silly sounding Twitter.

OKAY, STOP. Do not turn the page.

How do I know you want out? Because until about eight months ago, I would have wanted to turn the page at this point too.

Why didn’t I know about Twitter until recently? Because it’s called “Twitter,” that’s why.

I’m not a techie, so don’t worry… it’s safe to stick around.

This may be your only chance to hear about this Web 2.0 stuff from a regular person who speaks English and remembers writing on yellow pads like it was yesterday… because it was basically yesterday that I was writing on yellow pads.

Computer technology has always annoyed me. It almost never works the way it should, always costs more than it was supposed to, and the people who write the manuals are clearly not people with whom I’d want to converse.

I still remember the first time my cable modem went out and I couldn’t get on the Internet. I called the cable company… waited on hold for about 15 minutes… explained that my modem wasn’t working and that I needed someone to come out and fix it. I groaned when the tech support person said I could probably fix it myself.

Apparently, I needed to reset my broadband modem, so he told me to unplug the beige box… and then plug it back in.

Why don’t they just say unplug it and plug it back in? And why the heck don’t they put a sticker on each modem that says: If this stops working, unplug it and plug it back in? It sure would cut down on phone calls, I can tell you that.

Ever since then, when the Internet stops working, I call out to my wife: “Honey, could you please unplug

the box and plug it back in?” We’ve been married for some time now, so we’ve got the whole communication thing wired, so to speak.

Okay, so how did a guy like me become a Web 2.0 fanatic? Well, truth be told, it’s all Barack Obama’s fault. It was election night, 2008.

You have to admit, it was some night. We were watching CNN and it looked like there were about a million people celebrating in Grant Park in Chicago.

Then Anderson Cooper said: “Now we’re going to Times Square,” and sure enough it looked like there were another million celebrating there. “Now out to Los Angeles,” Cooper said, and yet another giant crowd jumping up and down. It was incredible.

I couldn’t help joking about it, so I said: “Wow… this reminds me of the night Bush won in ’04.”

Maybe you had to be there.

Then Anderson said something that caused me to pause. He said: Now we’re going to Helsinki… and then to Tokyo… and then to Melbourne… they’re celebrating in 70 countries around the world.”

And then they were switching from place to place, showing us the celebrations around the world.

That’s when I turned to my wife and said: “How the heck did he do that? Even the Olympics has a hard time doing that.” How did people in all of those countries know to show up where the cameras were waiting?

Did he send people door-to-door in 70 countries around the world? I know he raised a lot of money, but seriously? It was amazing, especially when you consider that had McCain won, it would have looked like The Lawrence Welk Show was

broadcasting from some Phoenix hotel.

The next day I was driving to my office, listening to NPR’s Morning Edition, and they were interviewing a presidential campaign historian who said: “Barack Obama is the first presidential candidate to have mastered the new Web 2.0 technologies.” I had to know more.

I went home and started reading everything I could find online about Web 2.0 technologies.

On Thanksgiving, my wife said: “Do you have to do that on Thanksgiving,” she asked. The answer was “yes,” but I know better than to ask that kind of question of a woman holding a carving knife, so I waited for everyone to fall asleep so I could return to my online education.

It was Christmas Eve 2008 when I officially stuck my toe in Web 2.0’s waters for the first time.

Our guests had gone home, and I was sitting in our living room waiting for Santa, when I said to myself: “Okay, self… prove it… do something… show off your new Web 2.0 abilities… you can’t just read about doing it forever.”

Today I can reach an audience of 100,000+ people without getting out of my bathrobe or spending a dime, through my blog, Mandelman Matters on ML-Implode. And those that like what I have to say, write to me… and I write back.

They trust me to tell them the truth about how I think and feel, and to get my facts right… and I take that trust very seriously. I try to never leave a comment unanswered, and I always give careful consideration to what someone has to say. It’s so cool.

TheNicheReport.com

17

I can’t even tell you how many times this past year I’ve found myself in conversations about the new Web 2.0 tools and heard someone over thirty saying something like: “It’s the kids that use all that stuff… I don’t know anything about it.” Or: “Oh yeah, my daughter made me open a Facebook account.” Or: “Well, I’m on LinkedIn, but I really haven’t started using it for much yet.”

Well, let me tell you something you can take to the bank. The kids may have started using the Web 2.0 tools first, but Web 2.0 is now open for business and from this point forward the kids don’t stand a chance. My own daughter’s thirteen and she’s quite adept at using what’s online… but she can’t communicate with 100,000+ professionals without getting out of her bathrobe, now can she?

Web 2.0 Open for Business You want to know why you should get to know what Web 2.0 technologies are all about? How about ten rock solid reasons?

1. No Technical Skill Needed – That’s right, no more “coding,” squiggle, squiggle, bracket, dot, dash, squiggle. Everything you need is point and shoot, fill-in-the-blank type stuff. Can you type your name?

Then you’re pretty much ready to go.

2. No Advertising Your Web Address – Remember those Super Bowl ads during the late 1990s that cost zillions to tell us how to find a Website… well, they were stupid and unnecessary just like we all thought.

3. It’s Free – And when I say free, I’m not talking mostly free, I’m talking sans cost. You don’t need any special equipment or software. If you can write a letter and email it, you’re all set.

4. You Can Do it Yourself – That’s right…. No new hires needed. You can harness the power of Web 2.0 all by your lonesome.

5. Precise Targeting – Web 2.0 makes direct mail look like it has the targeting capability of a billboard on the freeway.

6. Communicate in Any Medium – Print, video, audio, photos, Web 2.0 allows you to broadcast like a television or radio station, be your own magazine or newspaper, or write a letter like you’d write to Mom. 7. Measure Your Results – Web 2.0 is perhaps the most measurable communications medium ever invented. There is nothing you can’t know about the 18

August 2009

effectiveness of your efforts, almost in real time.

8. Last Minute, No Problem – Need to get a message out to your target audience 30 minutes ago… no problem.

Try that with any other communications medium.

9. Reach the Whole World – It’s amazing to consider, but with Web 2.0 tools you can quite literally reach people around the globe… free. The implications are staggering. If you have the “right” message, and clearly Barack Obama had such a message during his campaign, you can communicate with billions of people and next thing you know, they can be celebrating in 70 countries around the world.

10. Getting Better All the Time – The World Wide Web that we all became familiar with during the latter half of the 1990s was something akin to Henry Ford’s Model T, compared to the tools available today. But as good as it is, it’s getting better all the time.

The Business View When the infamous dot-com bubble popped in 2000, many of us took a snapshot of the Web and filed it away, believing that we understood what it was, and what is was not. But technology moves forward whether there’s an IPO in its future or not.

The World Wide Web is a giant book of information that’s not organized, alphabetized or indexed, and that’s why the first things that needed to be developed were search engines. But the visionaries that develop technologies for the Web saw that it could be used for much more than just finding information.

So, let’s get down to brass tacks, as they probably said in 1800. What is included in Web 2.0 and how can a business benefit from all of these advantages?

Social Nets Technology developers realized that people could congregate in communities on the Web. First there were simple “chat rooms,” and “bulletin boards,” but soon they added functionality. Instead of just “chatting,” people could now post photos, audio files, and videos. And the various pages could be designated as being for people with very specific interests. These groups of people with common interests on the Web are today called “social networks” and there are tens of millions of people participating in thousands of them every day.

Today you can go to a group’s page within a social network, and find everyone there for the same or similar

reasons. Maybe everyone enjoys gardening, or is passionate about classic cars, or sells insurance, or graduated from the same university, or is a doctor.

Today, when I write a new article and post it on my site, I don’t have to worry about people finding my Website’s URL address through a search engine. I simply go to a specific group I’m a member of within a social net, such as LinkedIn, which is a social net for business people, and post a link to my new article on the group’s discussion board.

When the members of the group come to their group’s page, they see my link. And if they find the subject of my posting valuable, they click the link and are transported to my site where they can read whatever it is that I’ve written. And if they really like it, they can click “Subscribe,” so that they’ll receive an email whenever I post something new. Too cool, right?

Human Search Engines: Social Bookmarking You bookmark something you find on the Web because you want to be able to find it again. But, chances are that if you found a given site valuable, others will too. This is the basis behind the technology known today as “social bookmarking”.

Social bookmarking sites are places people store bookmarks. For instance, if someone found a great article on the new HVCC rules on appraisals (perhaps the one I wrote in this magazine last month), that person could bookmark it on a social bookmarking site so that others could find it too.

(Hint, hint.) And they could bookmark it within a certain category… say “Real Estate,” so it would be easy for others who might find it interesting, to find it.

Social bookmarking sites have grown to have tens of millions of users, so there are now hundreds of millions of “bookmarked” pages, and once you start using one, you’ll start thinking of these bookmarking sites as human search engines because they retrieve pages placed there by human beings. And it’s not hard to imagine that people often make better choices than machines and their complex algorithms.

The Ubiquitous Blogosphere For people like you and me, blogs ARE Websites, they just don’t require the HTML programming that Websites do <HREF>. I’m sure some would say that Websites are better at some things because they can incorporate all sorts of Flash animation, or whatever, but to my eye… blogs look every bit as good as Websites and oftentimes a whole lot better. Plus,

blogs allow people to leave comments, and allow you to respond. And that’s a pretty big deal when you’re trying to communicate, as I’m sure you’d agree.

Anyone can build a blog, and even better, anyone can change one. I add something to mine at least once a day. The more you post on your blog, and the more people that go to it… the higher it will rank in Google’s search engine.

Twitter, by the way, is considered “micro-blogging” and I’ve found a lot of people to have no idea what Twitter is, or why they would possibly want to “tweet”.

I understand this, because I had no idea either… until recently.

Once you have people “following” you on Twitter, you can send them all a short message just by typing it in and pressing send, sort of like a text message on a cell phone… It’s fast and efficient, and now I use it everyday. Sometimes I use it to let people know about a new article. Sometimes I use it to tell everyone about an important change in the law, or if some breaking news is important to their businesses.

GrowinG ... reGardless of the climate

Private money lender loans from one million doll ars Watch for our intervieW on cnBc in august

2021 midwest rd. ste. 200 oakbrook, il 60523 tel: 630-396-6400 fax: 630-214-0041 www.groupe369.com

Save Your Borrowers

Up to 35% or More

On Their Title Insurance When you recommend ENTITLE DIRECT, your borrowers benefit from a higher level of service and reduced closing costs.

You’ll benefit from more closed deals and more referrals.

EnTitle Insurance Company is a member of the American Land Title Association (ALTA)

877-9ENTITLE

ENTITLE DIRECT is the first title insurance company selling direct to consumers. We’ve broken through the traditional model and sell title insurance and closing services directly to your borrowers at savings of up to 35% or more over the competition.

We offer a new way of doing things but we’re a veteran in title insurance. EnTitle Insurance Company has over 30 years of experience in the business and a Demotech Financial Stability Rating® of A’ (Unsurpassed), so you can be confident in our knowledge and service. We work with brokers and lenders like you to save their borrowers money on purchases and refinances every day.

Introduce your borrowers to ENTITLE DIRECT. Call us today toll free at 877-9ENTITLE (877-936-8485) to get all the details. Or visit us at www.EntitleDirect.com/mortgage.

All title insurance policies are underwritten and issued by EnTitle Insurance Company, 4600 Rockside Road, Independence, OH 44131.

EnTitle Insurance Company is regulated by the Ohio Department of Insurance.

www.EntitleDirect.com

The Secret to Web 2.0 Success: Think Like a Publisher, Not Like a Marketer Ask yourself the following question: What’s so great about the Internet? Why do we all love it so much?

Because it provides us with information at our fingertips, that why. We go online to find information almost every singe day. We’re not looking for sales pitches.

So, if you want to be successful using Web 2.0, you have to stop thinking like an advertiser or a marketer, and start thinking like a publisher. A publisher understands that it’s content that’s king. Produce content that people find valuable, and they’ll find you online and return time and again. Stick a sales pitch in someone’s face, and they’ll click off so fast you won’t even know they were there.

Marketers have a very different set of concerns.

Marketers are concerned with the offer… the sales pitch, if you will. And if you’ve tried advertising lately, you have some idea of how ineffective it can be, unless perhaps you’re having a 50% off sale. I can remember when a direct mail program could be expected to generate a 2-3% response, but the last time that happened I was storing information on a floppy disk.

Let’s say you own a real estate agency and you want to use Web 2.0 tools to attract customers. So, first things first, you create a blog for your firm. You might publish articles about the latest trends in the real estate market, or have a column written by a CPA that examines tax implications of various real estate transactions. The point is, you won’t be selling… you’ll be providing valuable information.

Next you sign up for Facebook and LinkedIn. And within those social nets, you’ll join groups that represent your target audiences. We might join a real estate investor group, or a group of entrepreneurs and business owners… or active seniors. The point is, you’ll publish content that audiences will want to read or watch that’s somehow related to real estate, but certainly isn’t selling it. Selling is for your Website. This is your blog… where you want to engage in discussions and build relationships as a result.

When we publish a new article on when and how to utilize a tax emption related to selling your home, we’ll go to the appropriate groups and post a link to that article.

We’ll choose several social bookmarking sites and we’ll “bookmark” our article in the categories that make sense for the content you’re offering.

Now you’ve provided a link to important information to thousands of people in your target audiences… maybe tens of thousands, and without paying a dime. Will people read it? Only if it’s good. Of course, no one pays attention to crummy advertising either.

And it doesn’t have to be an article that you post, by the way. You could post a video on your blog. The video may be hosted on YouTube, a video sharing site and another Web 2.0 tool. Or we might record a Podcast, and post the link to it, although it might be hosted on BlogTalkRadio.com.

We might even post content that someone else created and simply encourage others to join in a discussion about the topic. That’s right… we don’t even have to create all of the content ourselves. Lots of people post links to articles, videos and Podcasts created by others, and then host discussions about them in online groups and on their own blogs.

There’s no limit to the ways in which a business can utilize Web 2.0 to reach an audience, and no limit to the size of the audience that can be reached due to no media costs. And with the availability of sophisticated tools such

$1,000 One business trip (airfare, car rental and hotel)

$49 Unlimited online meetings per month

Do the math. With GoToMeeting you could hold a month’s worth of online meetings for less than one in-person meeting. Host as many meetings as you want for one flat rate – free VoIP and phone conferencing included.

Do more and travel less with GoToMeeting. Try it free for 30 days.

FREE 30-DAY TRIAL gotomeeting.com | promo code: AK16

as Google analytics, it’s easy to measure what’s working, and what’s not.

Now Is the Time to Get Started…

I understand as well as anyone that optimism is hard to let go, but the writing on the wall is pretty darn clear at this point: We’ve got some rough waters ahead, every company in America is going to have made some significant adjustments, and some won’t make it through the storm intact. The recovery of our economy, when it does come, will not be a ‘V,’ as the pundits like to say.

That’s no reason to throw in the towel, however, while some will succumb to the economic doldrums, others will prosper and grow. For example, not every company limped along through the Great Depression of the 1930s.

For example: Chevrolet took Ford out of the number one slot that Ford had comfortably maintained throughout the 1920s.

Proctor & Gamble became the dominant market force it is today, largely because of the lead it captured during the 1930s.

These companies grew to dominate their competition during the 1930s largely as a result of their innovative marketing strategies. Chevrolet took advantage of a new advertising medium… billboards. And Proctor & Gamble invested in the other “new” communications technology of the day… it was called “radio”.

In the years ahead, you should plan to spend less on marketing than you have in the past, and today’s traditional advertising mediums are, for the most part, as ineffective as they are expensive. You have to segment your markets, tighten your targets, and reach out more memorably… all in all, you have to market smarter and more cost effectively than ever before.

So, don’t be afraid of using what’s new on the Web. If I can do it, you can to. But let’s not tell the kids, okay? I think it’s best if they continue thinking they’re way ahead of us, whether that turns out to be the case or not.

Martin Andelman is a staff writer for The Niche Report. In addition to his feature stories, he writes a monthly column, Bringing Up the Rear, which you can find on the very last page of the magazine each month. He’s also a very popular blogger, and you can find his almost daily column, Mandelman Matters, online at mandelman.ml-implode.com.

Follow “Mandelman” on Twitter. Questions and comments, use: martin@nichereportonline.com.

Hard Money Loans from $100,000 to $1,500,000 • • • •

Minimum Credit 400 No seasoning No up front fees 48 hour closing

Lending Territory includes DE, MD, DC, VA, NC, SC, GA and FL. 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.

We’ll help you put the pieces together.

6019 Tower Court, Alexandria, VA 22304 Phone: 703-823-6800 or 866-908-FMV1 (3681) Fax: 703-997-2499 Paul Fogle or Art Bennett

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.

mortgage credit certificates A blast from the past! by j. daniel moralez

I

t seems like as much as things have changed in the mortgage business they stay the same. It never ceases to amaze me how the products we used to use are making a come back in today’s lending environment. Mortgage Credit Certificates (MCC’s) are such a product.

An MCC is a dollar for dollar tax credit on a borrower’s federal tax return. This credit is used to offset a tax liability.

That means in order to get the full benefit of the credit your client must have a tax liability at the end of the year. This liability is “washed” away by the tax credit.

Most borrowers create a tax liability by changing their withholdings out of their paycheck. That means more money in every paycheck. Because the amount of tax withheld from the borrowers check is decreased, this should lead to a tax liability at the end of the year. The tax liability is able to be washed away dollar for dollar by the MCC credit.

MCC’s are generally issued by State/Local Housing Finance Agencies (HFA’s). MCC’s are generally limited to First Time Homebuyers, while some HFA’s may allow buyers in targeted geographic areas to be non-first time buyers. Generally, MCC’s are limited to low to moderate income borrowers. Income limits vary according to the geographic location of the property and are determined by the HFA that is issuing the MCC. An MCC credit is equal to a minimum of 10% of the interest paid by a borrower during the year and can be as high as 50% of the interest paid for some borrowers. In most cases, the MCC credit is 10 to 25% of the interest paid on a mortgage during the calendar year. The 24

August 2009

percentage of the credit is set by the HFA that issues it.

If a borrower pays $5,000 a year in interest and has a 20% MCC credit, that credit amounts to an extra $1,000 for the borrower over the year. That equals an extra $83.33 per month in the borrowers pocket and can mean as much as an extra $5k to $10k in buying power for a client. In addition for borrowers with higher debt ratios the MCC credit may help them qualify.

Borrowers using an MCC credit are qualified differently depending on the type of loan they are doing.

Conventional mortgage borrowers can have the amount of the credit added back into their monthly income to help them qualify. Borrowers using an FHA loan can choose to either have the MCC added to monthly income or used as a direct offset against the monthly payment (greatest impact on debt ratios). In most cases, you will need a copy of the commitment to issue the MCC from the Housing Finance Agency prior to closing as well as a copy of a revised W-4 showing the borrower has modified their withholding’s accordingly to create the necessary tax liability to take full advantage of the credit.

MCC’s can be used with the First Time Homebuyer Tax Credit. However, clients cannot use the tax credit in order to get a larger tax refund. Lenders get this wrong all the time! Not only do they not get a larger refund, they get no credit if they follow that advice. To get the full benefit of the credit your client must have a tax liability at the end of the year. This liability is “washed” away by the tax credit.

Let’s take a look at an example: Prior to buying a home, borrower gets a tax refund of approximately $1500 every year.

Buyer has an estimated $5,000 per year in mortgage interest and will have an MCC for 20%. The value of

Monday, October 12

Monday, October 12

Opening General Session

Chairman’s Luncheon

Featuring:

Featuring:

Featured Speaker:

Paul Begala

Tucker Carlson

Robert Ballard

Political Analyst, CNN

Journalist and Political Commentator, Fox News Channel

President and Founder,

From the White House’s Situation Room to CNN’s news program of the same name, Paul Begala’s experience gives him an unmatched perspective on politics and the media. As a political strategist or pundit, Begala has been at the center of every election cycle for the last 20 years.

Along with Tucker Carlson, Begala was formerly co-host of Crossfire, CNN’s popular political debate program.

Tucker Carlson is a veteran journalist and political commentator, currently working for the Fox News Channel. Carlson joined Fox from MSNBC, where he hosted several nightly programs. Previously, he was the co-host of Crossfire on CNN, where he was the youngest anchor in the history of that network. During the same period, Carlson also hosted a weekly public affairs program on PBS.

Tuesday, October 13

Institute for Exploration at Mystic Aquarium

Hear from deep sea explorer and discoverer of the Titanic, Dr. Robert Ballard, at the Chairman’s Luncheon.

Famous for finding the Titanic, Ballard has conducted more than 100 deep sea expeditions during his career and is the recipient of numerous professional awards including the National Geographic Society’s prestigious Hubbard Medal and the National Humanities Medal from the National Endowment for the Humanities.

Ticket Price: $135 / person, $1,350 / table

Club MBA Dinner and Show Special perFormance by:

The Beach Boys Enjoy the sunny vocal harmonies of one of Billboard’s top 100 American rock bands — The Beach Boys. Join us for “Fun, Fun, Fun” and “Good Vibrations” at this year’s Club MBA. Ticket Price: $199/person, $1,990/table

Register today so you can reserve your hotel accommodations early and save on registration fees. To register visit http://events.mortgagebankers.org/96th_Annual or call (800) 793-6222, select option #3.

MBA thanks its convention sponsors. We are grateful for their support.

MERS® • VantageScore Solutions, LLC • First American • Fiserv • Freddie Mac • Lender Processing Services, Inc. (LPS) • The PMI Group, Inc. • Wells Fargo Funding • Balboa Insurance Group • Genworth Mortgage Insurance • Dorado Corporation • Federal Home Loan Banks Mortgage Partnership Finance® Program * Sponsors as of 7/22/2009 9249

the MCC is $1,000 for the year ($5,000 x 20%). In order to get the full benefit of the tax credit, the borrower must have a tax liability of $1,000. If they are currently getting approximately $1,500 per year in refund they must modify their withholdings to reflect $2,500 ($1,500 anticipated tax refund + $1,000 MCC credit).

By getting the extra $2,500 over the year the borrower will have an extra $208.33 per month in their check to use toward their house payment. At the end of the year when they file their tax return they would have a “tax liability” of $1,000. The value of the MCC would eliminate the tax liability and the borrower would get no refund but had the extra $208.33 per month to use toward their dream home.

Sure beats giving the government an interest free loan!

Keep in mind, the amount of interest that can be claimed on a borrowers Schedule A is reduced by the value of the MCC credit. In this example, the borrower paid $5,000 in interest over the year. However, the value of the MCC was $1,000. Schedule A mortgage interest deduction is limited to $4,000 ($5,000 interest paid - $1,000 MCC benefit). Again, a fact often overlooked by most lenders.

So what happens is they don’t use the entire tax credit?

If the borrower does not withhold correctly and they do not get the full benefit of the entire tax credit, they can carry the value of that credit forward for as long as three years and take advantage of it next year. If the MCC credit rate is higher than 20%, the maximum credit is $2,000 per year. In addition, any amount over $2,000 cannot be carried forward to following years for borrowers whose credit exceeds 20%.

If a homeowner refinances, some HFA’s will reissue the MCC for the new loan but will likely limit the amount of the benefit to mirror at best the original loan terms. In no cases will the IRS allow the credit on a refinanced loan to exceed the original MCC credit. In addition, not all HFA’s will allow a borrower who refinances to maintain their MCC. Like a mortgage bond program, if the home is sold within the first nine years the borrower may be subject to a recapture tax depending on if the home was sold for a profit and what their income is at the time of sale.

Most Housing Finance agencies have a fee for issuing a MCC. The fee can vary from agency to agency. Check with your local or state Housing Finance Agency to see if an MCC is available in your area. Learn what the terms and guidelines are and use this as a tool to get more first time buyers.

J. Daniel Moralez is a staff writer for www.

MortgageCurrentcy.com and Sr. Vice President of First Place Bank.

Don’t miss the most important meeting of the year!

Want to find out…

What’s going on in the industry?

Who are the major lenders?

Where is the industry headed?

How you can keep and grow your business?

Earn up to 7 hours of CEUs for licensure Join TAMP in Austin September 10-12, 2009 It’s important to you and your business!

For registration & exhibit information www.ttamp.org

(800) 850-8262

RULES & REGULATION HEADLINES

Rules & Regulation Headlines There were 13 major updates from June to July 2009, affecting loan originators, processors, underwriters and managers/ owners. If you don’t read anything else, you need to read and understand the 3 biggies: Mortgage Disclosure Improvement Act – Effective July 30, 2009 Reg Z Definition of High-Priced Mortgages – Effective October 1, 2009 Re-approval process of most FHA condos – Effective October 1, 2009 Mortgage Disclosure Improvement Act – Effective July 30, 2009 Disclosure, uniformity and comparison-shopping are the basis for this act—in fact, it defines and consolidates the information from TILA, HOEPA, HERA, EESA and Reg X and Reg Z with MDIA. It’s designed to clearly answer the questions borrowers have when applying for a mortgage and gives them the ability to compare estimates—both with your competitors rates and fees and a 2nd disclosure if the terms, fees or APR have changed by more than the tolerance levels.

MDIA requires a “waiting period” between the times when the disclosures are given, fees are paid (other than the credit report) and the closing date of the mortgage transaction.

The Federal Register specifically says that creditors are the entity that are supposed to provide the GFE’s and re-disclosures.

Creditor is defined as the one funding the loan. If you are a mortgage broker, you are at the mercy of the creditor/lender to send them to your borrowers.

Standardized forms now required – GFE (used for disclosure and re-disclosure) but the big addition here is a section where the consumer can use “The Shopping Chart” to comparisonshop with other lenders. The HUD 1 contains basically the same line items—but now includes the loan terms on page 3. Now the biggie, the HUD 1A – the GFE is compared to the closing costs so the consumer can easily decipher what was quoted on the disclosure versus the actual closing costs. Some of the highlights: • New GFE Forms • Specific days for disclosures, redisclosures and closing dates • Business days now defined as all days, except Sunday and Federal Holidays • APR Tolerances determine re-disclosure • Types of transactions covered • Purchase – Primary & 2nd homes • Condos, Townhomes, co-ops • Refinance- Primary & 2nd Home

28

August 2009

• • • • • •

Timeshare • No-Cost loans Construction/End Loans Closed End Loans Manufactured/Mobile Homes on real property Mortgage Assumptions (if loan terms change) Reverse Mortgages

There is a lot, and I mean a lot more here but watch out for all the mis-information out there too. Oh, and remember that the 3-day appraisal disclosure is part of this mix.

Reg Z (TILA) Revised-High Priced Mortgages Now that all of the damage is already done, the Feds are really going to town with a bunch of Reg Z, TILA revisions in an effort to reign in those nasty, unscrupulous lenders. (You know, the ones who are no longer in the business.) There is a new category called HIGH-Priced Mortgages that can affect both conforming and government loans. Your pipeline is at stake!

Effective with applications takes on or after 10-1-2009.

• Considered High-Priced when APR exceeds “Average Prime Mortgage Offer Rate” for a comparable transaction as of the date the interest rate is set • Principal residences only • Applies to APR and not the interest rate • If considered “High Priced” • Analyze Ability to Repay based on largest payment for first 7 years, including other obligations • No home equity loan • Assets/Income 3rd Party verification (regardless of DU, LP of FHA findings) • No Prepayment Penalty • No Escrow Account waiver

Fannie & Freddie Allow 125’s for DU Refi’s, DU Refi Plus & Releif Refinance Program When are these guys going to get it? The people who need the most help are the ones that have all of the LLPA’s. I understand

THE NEW JERSEY ASSOCIATION

OF

MORTGAGE BROKERS

AND

THE PENNSYLVANIA ASSOCIATION PRESENT THE

OF

MORTGAGE BROKERS

FIRST ANNUAL

NORTHEAST CONFERENCE

OF

MORTGAGE BROKERS

2009 NORTHEAST CONFERENCE OF MORTGAGE BROKERS - NON-EXHIBITOR REGISTRATION FORM OCTOBER 21, 22, & 23, 2009 - TRUMP TAJ MAHAL CASINO RESORT, ATLANTIC CITY, NJ To register for the Conference, please complete the following form and mail with your check made payable to: New Jersey Association of Mortgage Brokers and mail with this form to NJAMB, 385 Morris Avenue, Springfield, NJ 07081 or Fax Credit Card Information (Visa or MasterCard ONLY) to 973-379-5152. If you have any questions, please call 973-379-7447, or e-mail: info@njamb.org. Photocopies of Registration Form are acceptable.

OTHER REGISTRANTS Conference Only Option — Includes Continental Breakfasts, General Sessions, Breakout Sessions, Exhibit Hall Access, All Coffee Breaks, Lunch, and Evening Networking Cocktail Receptions

Golf/Conference Option: Includes All of which is included in the Conference Only Option Plus 18 Holes of Golf, BBQ Lunch at the Golf Course and Golf Prizes.

SAFE Pre-Licensing/Conference Option: Includes All of which is included in the Conference Only Option Plus 12 hours of SAFE Pre-Licensing Education Units, and a discount on the remaining 8 hours given at a later time.

MEMBERS (Full Conference Registrations)

Conference Only Option SAFE Pre-Licensing Education/ Conference Option

Golf/Conference Option

Register Before September 15, 2009

Registration After September 15, 2009

On-site Registration

$125 per person

$175 per person

$225 per person

$365 per person

$415 per person

$465 per person

$225 per person

$275 per person

$325 per person

NON - MEMBERS (Full Conference Registrations)

Conference Only Option SAFE Pre-Licensing Education/ Conference Option

Golf/Conference Option

Register Before September 15, 2009

Registration After September 15, 2009

On-site Registration

$145 per person

$195 per person

$245 per person

$465 per person

$515 per person

$565 per person

$245 per person

$295 per person

$345 per person

EXHIBIT HALL PASS (For Entrance to the Exhibit Hall ONLY on Thursday, October 22, 2009) Register Before September 15, 2009

Registration After September 15, 2009

On-site Registration

Member

$25 per person

$35 per person

$50 per person

Non- Member

$45 per person

$55 per person

$70 per person

10% Discount on Attendee price for 5 or more registrations from the same company.

Name ____________________________________________________Badge Name ___________________________________ Company ________________________________________________________________________________________________ Street _____________________________________________________________________________________________________ City _______________________________________________________________________State ________ Zip ______________ Phone ____________________________ Fax _________________________ E-Mail ____________________________________ Payment Method:

Check (made payable to NJAMB)

Credit Card (Visa or MasterCard ONLY)

Total Enclosed: $_______________

Credit Card: Visa or MasterCard Name on Card ____________________________________________ Signature _____________________________________________ Card Number ______________________________________________ Exp ____________/___________ V-code __________________

Hotel Reservations: Hotel rooms are NOT included in the Conference Registration Fee. Upon receipt by the NJAMB of your completed registration form and fee, you will receive hotel reservation information. Rooms are available on a limited basis at a special rate for single/double occupancy. You are not guaranteed a room, because rooms are provided on a first-come first served basis. Do NOT send your hotel room deposit to the NJAMB. Refunds: for cancellation of Conference registration will be made only upon written request, minus a $25 administrative fee until September 15, 2009. A $30 fee will be charged for returned checks. Cancellation of Conference: The Conference may be changed or cancelled at the sponsor’s option if circumstances require. If you require a receipt please request it at time of registration.

RULES & REGULATION HEADLINES the need to price for risk, but come on already? By the time the product is available rates could have increased and by the time client pays all of the LLPA’s the deal may no longer make sense.

• • • • • •

DU Refi’ & Relief Refinance for Servicers DU Refi Plus – LO’s can originate Can now included Lender Paid MI Cannot close until October 1, 2009 125% LTV based on appraisal May still have problems due to 1004MC form

FHA Major Changes to Condo Approval Process – Starts All Over Again Yes, you read it right. Almost all FHA condo approvals will be GONE on October 1, 2009. We will be starting from scratch with no approved projects until lenders start submitting approval packages to HUD or have their internal project approval staff start working on them. (But there will still be a bottleneck in the beginning because HUD has to review the first 5 lender-issued approvals.)

Because FHA financing on condos will come to a screeching halt for a period of time, it is imperative that Realtors understand the importance of moving those condo listings NOW. FHA buyers have to get off the fence NOW. Who knows when the

“Agonizing Over a Commercial or Land Loan? First Capital Gets Deals Done!”

We still have money available for your commercial loans and your land cash-outs. Normally we can get you a proposal within 48 hours. We are mostly focused on bridge loans, land, land development and new construction from $250,000 to $5,000,000. Preference for Colorado, Arizona, New Mexico, Texas and Georgia.

Just e-mail us a loan scenario to loans@dealsdone.net or download our application at

dealsdone.net/FirstCapitalRealEstateLoanApplication.pdf

and fax it back to 832-201-7203

Be among the first to purchase “The 31 Success Steps for a Commercial Mortgage Broker” A SPECIALLY RECORDED PRIVATE SESSION http://www.dealsdone.net/seminars_materials.php

If you have any questions, please call Lauren or Mark at 713-267-4040

project will get back on the approved list?

• • • •

Spot Approvals are GONE Only projects approved AFTER October 1, 2008 are valid One-year waiting Period for Condo Conversions eliminated Only FHA approved lenders or Builders/Developers can submit Condo Approval Package • You do the work, other lenders benefit • Will track FHA Loan concentration so not to have high amount of FHA loans within one project • 50% Owner-Occupied

Too many rule changes to mention here—but if you lend in an area with a large amount of condos, you may have to dedicate staff and your time to start the process or you won’t be making many FHA condo loans any time soon.

FHA Enhances Energy Efficient Mortgages Looking for a new business direction? Go Green! It’s a great way to increase business and develop some great environmental PR in the process. Mortgage Letter 2005-21 is the most recent guidance on originating EEM’s • • • • • •

Add Cost of Energy Efficient Improvements to Purchase or Refi Windows • Heating and Air Conditions Insulation • Weatherization Items 1-4 Family – New or existing $8000 Cap eliminated Ratios for qualifying based on loan without EEM additional dollar amount

Let your past clients, who are looking to refinance, know about this awesome program.

USDA Now Allows In-Ground Swimming Pools – But May Reduce Loan Amount Bad news – Good news – and then Bad news again!

Bad News - Lets say the home (with an in ground pool) sold for $100,000. The appraiser values the pool at $3000. The base loan amount will be $97,000 and the borrower has to come up with $3000 extra at closing.

Good News – In-ground pools are NOW allowed—they weren’t before May 28, 2009.

Bad News – Ask your local USDA about ARRA funds! What you don’t want to have happen is that you “think” the swimming pool issue is okay, then find out the ARRA money is being used to fund the loan—it’s an automatic reject!

More detailed updates can be found at MortgageCurrentcy. com – Interpreting the rules and regulation changes for loan officers, processors, underwriters, and owners/managers.

Mortgage Talking Points®, charts and checklists included.

Get the Edge & Close More Loans!

Offer a 5 Day/4 Night “Cruise Certificate for Two” To the Bahamas, Eastern or Western Caribbean

Upon the closing of any new loan.

Up to a

1798 value!

$ What You Can Expect: • • • • •

Increase In New Loans Edge Over Your Competition Generate More Referrals Better Ad Response Full Color Marketing Materials Included

only

159

$

00*

Per Certificate

What Your Clients Can Expect: • • • • • •

Beautiful interior stateroom for two Gourmet meals & snacks State-of-the-art fitness center All shipboard activities 24-hour free stateroom service All shows & entertainment

www.Cruise4Two.com Call Toll Free (866) 541-8077

© 2009 Cruise4Two. All Rights Reserved.

*Minimum purchase required. Cruise certificate recipient is responsible for port charges, taxes, customs and fulfillment fees.

See cruise certificate for full details.

CENTER STAGE

CENTER STAGE WITH express notary service Point, Click - Sign!

brought to you BY THE NICHE REPORT

I

n 2002, entrepreneur Henry Davidson identified the need to streamline the mortgage closing process and founded Express Notary Service, Inc. in Irvine, California, a nationwide network of Notary Signing Agents. To facilitate this simplification, he created an industry leading, web-based ordering and tracking platform to provide borrowers and customers with live updates during their closing process. Now working in conjunction with more than 7,000 notaries nationwide, Davidson and his team have positioned themselves in line with the innovative solution to make what was once a daunting task even simpler – eSign.

Almost 3 years ago, Barbara Koorey of Orange Coast Title, Lender Services Group introduced Davidson to Dennis Rodino, Director of Mortgage Operations at AmTrust Bank and the EsignNotaries.com side of Davison’s business was born. An industry leader, Davidson’s team at Express Notary Service, Inc. and EsignNotaries.com has become one of the most successful, independently owned notary signing services in the United States, primarily because of their dedicated staff and attention to efficiencies.

“Our eSign® notary services are groundbreaking in the mortgage industry and alongside AmTrust Bank, we are on the forefront of electronic mortgage closing technology,” said Davidson. “Our independent notary contractors are on a nationwide networking system and documents can now be delivered to the borrowers anytime, anywhere, on time, every time.”

32

August 2009

eSign documents are paperless documents that give borrowers the option to expedite the closing process in half the time with half the paperwork, reducing not only the expense but also the errors associated with paper closings. This means a notary has the capability to come to a borrower’s home, office or any other meeting place to upload the paperless closing documents for the borrowers to sign electronically. AmTrust Bank is one of the largest mortgage lenders in the country and has closed and sold more loans with electronic notes (eNotes®) than all other lenders in the nation combined.

Most, if not all, of the mortgage closing documents can be signed using the eSign system, which is supported

by Gemstone, AmTrust Bank’s world-class businessto-business Website. The documents are supported technically by FannieMae, FreddieMac and MERS, are accepted industry-wide and are in full compliance with industry standards. The electronic signature technology has been used to sign tens of thousands of fixed and adjustable rate home loans across the country.

“When the mortgage industry began, lender documents had to be printed and sent through overnight mail and in the mid-90’s, email was utilized to send the documents back and forth,” Davidson said. “Now, we can do all of this with just a click of the mouse, in a matter of minutes. Instead of ‘sign here and initial there,’ it’s just ‘click here.’ We don’t have to worry about errors or turnaround times anymore.”

The eSign legal documents are digital. Consumers click their mouse for signature instead of utilizing “ink” signatures and digitally bundled documents can be signed simultaneously by using the eSign method. Borrowers can

CENTER STAGE rest assured they will have greater document security with tamper proof digital documents and can review closing documents online, at any time, prior to their final closing date, eliminating any unanswered questions.

Another benefit of paperless documents is that after closing, PDF documents can be created and saved to email inboxes, a server, hard drive or a flash drive and borrowers can take the electronic documents with them. At closing, documents are uploaded and transmitted immediately, alleviating the need to overnight signed documents.

“The lender documents are traditionally more than 100 pages, so this is a tremendous way to save money in printing costs, paper supplies and electricity. “It’s a great way to ‘go green’,” Davidson added. “Paperless is an incredible benefit to all parties involved, in every way.”

Title and escrow packages are still physically printed and signed accordingly by each individual state’s law.

So, what are the disadvantages of the paperless process? Seemingly, not many.

First, paperless documents can only be obtained through two different lenders at this time – AmTrust Bank and Flagstar Bank. Other lenders are only offering the traditional closing methods, which are by email transmission and by sending the documents through overnight mail.

Next, most notary services are not currently educated on the paperless process. Although, Davidson quickly states that within ten to fifteen minutes, any independent notary can easily be trained through a phone call or through the training videos provided online and be at a borrowers door shortly thereafter with the necessary closing documents.

Finally, not all borrowers are technologically savvy and ready to figure out the depths of their computer and the online world. Flash drives? Servers? That may take a little more explanation to someone of the older generations.

All information considered – the paperless closing process is as simple as it’s explained to be to the borrower.

Paperless documents offer the benefits of control, speed and ease over the mortgage closing process.

“Paperless documents are a win for everyone – the borrower, the lender, the brokers, even the environment,” Davidson said. “We’ve heard nothing but positive feedback from all of our partners and we’re proud to work with AmTrust Bank on their innovative eSign program.

Even as the mortgage industry has faced many struggles during this time, AmTrust Bank has looked to the future

and our company is happy to be part of that future.”

Signing Agents who are interested in becoming part of the notary network can join in the Notary portal on www.expnotary.com or www.esignnotaries.com.

AmTrust Bank was founded in 1889 and is one of the fastest growing financial institutions in the United States today. A nationally recognized leader in retail banking, AmTrust Bank has branches in Florida, Ohio and Arizona and offers customized checking, investment and small business services. AmTrust Bank is among the top 15 home loan originators in country and also specializes in construction lending.

Customers who are interested in learning more about AmTrust Bank’s industry leading eSign solution may visit www.esignmortgage.com.

Express Notary Services, Inc and EsignNotaries.com are based in Irvine, Ca. and can be contacted 24 hours a day, seven days a week with questions regarding mortgage closing processes and references for nationwide title and escrow companies. Please contact Henry Davidson, Director, at henryd@expnotary.com or call 949.596.4105.

A beAcon of light in A dArk time “I see a way through this”

hard money made easy

at aFG we pride ourselves on creatinG Fast, Fair and Flexible solutions For your unique Financial needs.

Brokers Protected Loans from $150k to $3M Commitments within 48 Hours 5-Day Closings

$350,000 Condo Building Cash-out Refi

$1,100,000

Purchase and Rehab SFR - Investment

$2,700,000

156-Unit Apartment Purchase and Rehab

loans@assetfunginggroup.com • www.assetfundinggroup.com

Toll Free: (866) 398-8916 • P (720) 889-1175 • F (720) 889-1177 Multifamily • Non-owner SFR • Commercial • Bridge Financing • Emergency Funds • Purchase/Rehab

TIP OF THE MONTH

TIP OF THE MONTH Value added proposition = Absorption rates

BY STEWART MEDNICK

I

was talking with a very good business acquaintance of mine, Suzanne Crandall, who lives in Chicago and is a top-producing real estate agent in the high net-worth suburban areas of Chicago. She was scurrying through some marketing evolutions, under a time crunch, as she explained how she added value to her services offered for the clients she represents.

“This is called an Absorption Rate. What I do is search a specific area/town and with each search, I look at all the homes that have sold in different price points for the last six months to date and all the currently active listed properties on the market in a range of price points.…” she went on to describe. “For example, suppose you were selling a home in the Barrington Suburban area, here are my findings for you: In the $650,000 to $700,000 price range; 11 homes have sold: I divide that by 6 (for 6 months) = 1.8 homes per month sold.

33 homes are Active: I divide that by 1.8 (number of homes that sell per month) = 18.3 months necessary to sell a house in this price range. That tells me how many months of inventory (homes) are on the market. $700,000 to $750,000; 12 homes have sold. 25 homes are Active = 12.5 months necessary to sell a house in this price range. $750,000 to $800,000 and the $800, 000 to 34

August 2009

$850,000 ranges would also be figured if needed. In all of the Barrington District 220, 165 homes have sold in the last six months, 524 homes are active, equaling 19 months needed to sell all the homes currently on the market, and so forth….”

According to NAR (National Association of Realtors), when the active inventory on the market is more than six months, than it is considered a buyers market. It will take much longer to sell a home now, than it did last year in this month.

For those of you who are avid readers of my column, you may recall the May, 2008 issue when I presented ‘The Formula’ which is Benefit – Cost = Value. In Suzanne’s model, she is creating a very high level of benefit with her value-added proposition to her clients.

In essence, the perceived value of service received by the client will be proportionally as high. This is one technique Suzanne uses to ensure she is a top Realtor in her area. Seasoned/skilled Real Estate Professionals use a number of tools to inform and educate their clients about the market to help them make decisions when pricing their homes. “…My USP, Unique Selling Proposition, is that I really listen to my clients and together, we determine their needs and goals. I am in the business of selling real estate not listing. I currently have a 95.6 percent list to sell ratio.

My last three properties had contracts within three weeks through my ability to market each property uniquely and custom fit a system that shows the client’s home in the

Americas only FREE foreclosure resource and most effective lead capture system GuARAntEEd!

Our Proven Patent Pending System - Featured on Good Morning America!

We currently offer integration with most Crm applications.

all experTs are exClusive To The area.

Call now and reserve your exclusive area! Prices start as low as $49!

ONLY ONE Expert Agent and Lender appear in each area.

Exclusive Areas - No Referral Fee, EVER - Free Web Site FREE Lead Management System - Placement on major search engines

Call Today! 443-603-1071 pburneTT@ushud.Com

Mention this ad and recieve $50 off your first month!

USHUD.com is a private company not affiliated or associated with or endorsed, authorized, approved, sponsored or licensed by the Federal Government or the uS department of Housing and urban development

We’ll help you put the pieces together.

Hard Money Loans from $100,000 to $1,500,000

• Minimum Credit 400 • No seasoning • No up front fees • 48 hour closing Lending Territory includes DE, MD, DC, VA, NC, SC, GA and FL. 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 Court, Alexandria, VA 22304 Phone: 703-823-6800 or 866-908-FMV1 (3681) Fax: 703-997-2499 Paul Fogle or Art Bennett

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.

There is a solution.

HArd MoNeY LoANS wItH MeTRo FunDIng. $3.55M Industrial Site Leominster, MA Broker Commission: $50,000 $1.975M Residential Subdivision Asheville, North Carolina Broker Commission: $19,750 $2.35M Storage Center Coeur d’Alene, Idaho Broker Commission: $35,250 $3.875M Luxury Subdivision Carmel, Indiana Broker Commission: $77,500 $975,000 Historic Office Building Andersen, Indiana Broker Commission: $40,000 $3.8M Health Spa Development Staten Island, New York Broker Commission: $38,000 $1.2M Land Loan Apple Valley, Utah Broker Commission: $36,000 $1.95M Hospitality Loan Cleveland, Mississippi Broker Commission: $78,000 $7.2M Condo Conversion Kissimmee, Florida Broker Commission: $108,000

TIP OF THE MONTH best light. I can not guarantee these results but working together can greatly decrease the amount of time to win a contract to sell the home….”

As a mortgage professional, I would want to team with Suzanne in a heartbeat if I want to create a synergy of partnership with a realtor to add value to my clientele.

An Absorption Rate Analysis (ARA) of the price range and housing district that your client is selling his or her home is a great way to add a personal touch to your marketing plan. This is one of many tools used to perform a complete market analysis and have a more complete picture of the accurate price point for their home. If any one of these tools is performed correctly and completely, then the other tools will be just as complete and beneficial. Thank you for the tip, Suzanne!

Stewart Mednick is a seasoned mortgage banker and published author. His writing focuses on relationship development, personal empowerment, customer satisfaction, marketing and sales techniques. Stewart is available for marketing consulting, personal coaching and training sessions.

If you have a comment or a question for Stewart, contact him at 651-895-5122 or smednick1@netzero.net Suzanne Crandall is an accomplished Realtor for KellerWilliams Success Realty in Barrington, IL. Crandall may be contacted at scrandall@kw.com for further explanation of Absorption Rates, consulting, Property Analysis, International Investment, and Financial Planning. Her website is www. suzannecrandall.com Crandall is also a principal for Leonidas, an international investment company specializing in matching investors with distressed properties around the world.

visit: www.influencedp.com/leadmanagement

influence Lead Management Service can help ensure that your company gets the maximum benefit out of its lead generation efforts.

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

480 321 9006 + LM@influencedp.com

influence

Prospector Communications LET PROSPECTOR DO THE LEAD MINING

Need to Reach Brokers and Originators?

If your goal is to expand your network by reaching the Mortgage and Real Estate industries at large, Prospector can get you there. Specializing in Finance and Real Estate since 2001, Prospector can help your company reach its sales and origination goals by delivering turnkey, customized B2B email campaigns that equal RESULTS. We specialize in delivering results for bankers, brokers and lenders as well as mortgage product and services companies nationwide.

If you need to jump-start your company’s sales or originations, contact us for a free consultation.

Prospector understands the industry from the inside out and are the ONLY B2B marketer that can GUARANTEE results with every campaign. An industry leader for almost a decade, Prospector has the largest active network of loan producers in the nation who are currently seeking help with their businesses or are in need of loan conduits.

We specialize in the following areas; * * * * * * * * * *

FHA, Commercial, Hard Money, Reverse, Conventional Programs Loan Modification Networks and Affiliates MTG Training and Education Lead Generators Loan Processing and Compliance Industry Alerts and Updates for Regulatory Bodies Recruiting; Let us find quality LO’s and AE’s for you in any state Net/Virtual Branch Specialists Industry Marketing and Support Backline Services, Software, Compliance and more

Prospector offers Turnkey Solutions to brand your company in the Mortgage Marketplace.

Prospector wants your Mortgage or Real Estate B2B campaign to be a success.

“The internet is irreplaceable for the future of cost effective marketing for all business marketing.” Forbes

Prospector Communications 21321 Oakwood Lane, Foresthill, CA 95631 866-759-5799 prspct1@prospectorcommunications.com www.prospectorcommunications.com

NICHE REPORTS

Agency & FHA Premium Listings

NEW

American Pacific Mortgage

NEW

Flagstar Wholesale Lending 866-945-9872

Offer a full array of FHA and Agency products, coupled with industryleading underwriting turn times and technology

NEW

Gateway Funding Diversified Mortgage

Retail affiliate opportunities

NEW

Guaranteed Home Mortgage Company, Inc.

Join American Pacific Mortgage and become a direct lender with the option of brokering

866-625-9352

215-591-0222 Specialized Retail Platform for Experienced Loan Officers

888-572-3602

Mid Island Mortgage Corp

Direct FHA Lender, True manual underwriting company, Streamline's down to 580, Scores down to 500, Refers OK, Mtg lates Ok

703-754-9643 - Tim Dooley

AGENCY & FHA Lender Listings Powered by TheLoanPost.com Alternative Mortgage Express

800-552-5263

www.amxloans.com

Florida Capital Bank Mtg

866-295-0014

www.flcb.com

AME Financial Corp

770-449-8444

www.amefc.com

Franklin American

606-519-4165

www.franklinamerican.com

American BancShares

305-826-4500

www.americanbancshares.com

Freedom Mortgage

800-388-1537

www.freedomwholesale.com

American Financial Resources (FHA only) 973-588-8530

www.afrwholesale.com

Gateway Funding

800-355-5626

wholesale.gateway-funding.com

American Home Equity

714-661-5836

www.ahedirect.com

Global Lending Group

727-530-0110

www.glgiwholesale.net

American Partners Bank

800-393-5250

www.apbwholesale.com

Greystone Financial

877-673-5626

www.greystonefinancialonline.com

Amtrust Bank (Fannie/Freddie only)

888-321-6446

www.amtrustgemstone.com

GSF Funding

262-373-0790

www.gsfsales.com

Assurity Financial (FHA only)

866-844-7390

BAC Florida Bank (Fannie/Freddie only) 305-789-8064 Bank of America Wholesale

800-669-2825

Bank of Ann Arbor (Fannie/Freddie only) 800-807-6337

www.assuritywholesale.com

Guaranteed Rate

866-755-0989

www.griwholesale.com

www.bacflorida.com

Home Savings of America

972-235-7366

www.myhsoa.com

wholesale.bankofamerica.com

ICON Residential Capital

888-639-5641

www.iconwholesale.com

www.boaawholesale.com

ING Mortgage

877-464-0555

www.ingloans.com/wholesale/index.html www.jmaclending.com

banktnwholesale.com

JMAC Lending

877-841-0776

Century Lending (Fannie/Freddie only) 866-831-5618

www.centurylending.net

Liberty Lending Inc

800-808-5591

www.libertylendingwholesale.com

CMG Mortgage

800-501-2001

www.cmgbanking.com

Liberty Mortgage

800-940-4032

www.bbt.com/libertymortgage

CNB National Lending, LLC

877-421-4654

www.cnbnationallending.com

M&T Bank Mortgage

804-380-7465

wholesalemortgage.mtb.com www.megacapitalfunding.net

BankTennessee

901-383-0237

Continental Home Loans

800-540-8838

www.chlmortgagebankers.com

Mega Capital Funding (Fannie/Freddie only) 818-657-2600

Direct Mortgage Wholesale

801-924-2300

www.solutioncenter.biz

Merit Mortgage

310-650-0773

meritwholesale.com/

MetLife Home Loans

www.wholesale.metlifehomeloans.com

Mortgage Close (Fannie/Freddie only)

866-267-7691

b2b.mortgageclose.com

Emigrant Mortgage (Fannie/Freddie only) 800-Emigrant x mid atlantic www.emigrantmortgage.com

Federal Trust Mortgage

407-323-1833 x 153 www.federaltrust.com/brokers

National Direct Funding (Fannie/Freddie only) 877-772-7790

Fifth Third

866-492-0072

www.53.com/wholesalemortgage

National Home Lenders

First Cal

877-224-3262

www.firstcalwholesale.net

Nations Direct Mortgage

866-762-3940

www.brokerFHA.com

Washington Federal

971-645-9140

www.washingtonfederal.com/wholesale

NetMore America

509-526-4007

www.netmoreamerica.com

Flagstar Bank

800-945-7700

www.wholesale.flagstar.com

Nexbank

866-389-6046

www.nexbank.com

www.ndfcorporation.com

888-344-0520 x 4 www.nationalhomelenders.com

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 lenderâ&#x20AC;&#x2122;s information on products, program, procedures, representations, and warranties for details.

38

August 2009

Anthony F. Geraci is a leading expert in the creation of mortgage pools and fractional loan securities offerings. Geraci Law Firm has created over $10 Billion in debt and equity financing.

Order your FREE DVD, titled “Mortgage Pools & Funds: How to Profit in a Liquidity Crunch.”

Call Jessica Ramos at 949-379-2600, fax: 949-379-2610 or email:

jessica.ramos@geracilawfirm.com

Geraci Law Firm also does the following: • Custom Loan Documentation • TILA/RESPA/State Lending Compliance • 50 State Licensing • Litigation • Creditor Bankruptcy Representation

NICHE REPORTS

AGENCY & FHA premium niches continuedâ&#x20AC;Ś NorthStar Lending (Fannie/Freddie only) 866-829-8726

http://www.mynorthstarlending.com/

(Fannie/Freddie only)

Pacific Banc Mortgage

949-419-0505

www.pacificbanc.com/

Security National Mortgage

801-264-1060

www.securitynational.com

Pacific National Bank

305-539-7675

www.pnb.com

Senderra Funding

866-831-2430

www.senderra.com

Paramount Residential (FHA only)

951-278-0000

www.prmglending.net

Sierra Pacific

Phoenix Funding

877-562-6414 x 230 www.phoenix-funding.com

PMC Bancorp

626-964-4040

www.pmcmtg.com

Polaris Funding (FL, IN, MI, OH)

866-467-9230

www.polarishfc.com

Preferred Capital (Fannie/Freddie only) 800-454-0109

www.prefercapital.com

800-447-3386

www.spm1.com

SouthPoint Financial (Fannie/Freddie only) 800-433-1467

www.spfs.com

Stearns

800-350-5363

www.stearnswholesale.com

SunTrust Wholesale

913-982-2150

www.stmpartners.com

888-678-8547

www.taylorbeandirect.com www.TheJumboLender.com

Premier Mortgage Capital, Inc.

407-367-6500

www.premierwholesale.com

Taylor, Bean & Whitaker

Presidents First

877-773-7178

www.presidentsfirst.com

The Jumbo Lender

800-826-0360

www.primarycapital.com

Titan Wholesale

775-852-6888 x 225 www.titan-wholesale.com

Primary Capital

800-699-1286

Provident Funding

800-733-3657 x 1712 pfloans.provident.com

Trust One Mortgage

949-450-1888 x 1284 www.trustone.com

Reliant Funding

800-850-8056

www.reliantfunding.us

U.S. Bank Consumer Finance

800-803-4212

www.usbank.com

Residential Lending Network

954-334-2059

www.reslend.com

United Residential Lending

888-875-8326

www.urlending.com

(Fannie/Freddie only)

Reunion Mortgage

800-941-8321

www.reunionwholesale.com

United Wholesale Mortgage (FHA only) 800-981-8898

www.uwmco.com www.villagewholesalelending.com

Royal Crown Bancorp

877-507-6925

www.crownloan.com

Village Capital and Investment (FHA only) 800-496-7136

Security Atlantic (FHA only)

732-738-7100

www.fhaland.com

Virgin Money USA

877-937-4887

www.virginmoneyus.com/mortgage

Security Mortgage Funding

800-407-8436

www.smfcloans.com/brokers

Wells Fargo

310-283-8411

www.brokersfirst.com

REVERSE Premium Listings

NEW

Guaranteed Home Mortgage Co., Inc.

Specialized Retail Platform for Experienced Loan Officers

888-572-3602

Reverse It! A division of Urban Financial Group, Inc

Reverse Mortgages, fastest turn times in the industry. Training and lead support available.

888-777-3311 REVERSE MORTGAGES Lender Listings Powered by TheLoanPost.com American BancShares

305-817-2165

hwww.americanbancshares.com

MetLife Home Loans

www.wholesale.metlifehomeloans.com

Arlington Capital Mortgage Corp

800-814-9432

www.acmcwholesale.com

NetMore America

509-526-4007

www.netmoreamerica.com

Circle Mortgage Corporation (Fl only)

800-576-1338

www.circlemortgage.com

Pacific Banc Mortgage

571-340-5593

www.pacificbanc.com/

Continental Home Loans

631-393-3800 x 114 www.chlmortgagebankers.com

Essex Mortgage

702-893-9200

www.essexwholesale.com

Quality Life Reverse Mortgage

800-955-7919

qualityliferm.com/

Financial Freedom

800-500-5150

www.financialfreedom.com

Quik Fund Inc.

813-671-0712

www.quikfund.com

Financial Heritage

800-895-2209

www.financialheritage.com

Silvergate Bank (cml)

858-362-6300

www.silvergatebank.com

Generation Mortgage

866-733-6089

www.generationmortgage.com

SouthPoint Financial Services

800-433-1467

www.spfs.com

GotMortgage.com

760-802-9630

http://www.gotmortgage.com

Sunwest

800-453-7884

www.swmc.com

Liberty Reverse Mortgage

866-871-1353

libertyreversebroker.com

Wells Fargo Reverse Mortgage

800-336-7359

www.wellsfargo.com

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 lenderâ&#x20AC;&#x2122;s information on products, program, procedures, representations, and warranties for details.

40

August 2009

Manaseh, Epharim & Associates

Attention sellers And privAte lenders!

Your source for commercial real estate financing.

Funding nationwide and internationally!!

Rates from 3.9%

We will consider all opportunities including:

We are buyers/ owner operators actively seeking NURSING HOMES (Skilled Nursing Facilities/CCRC)

Hard Asset purchase JV opportunities that require cash infusion Open leases that need operators Lending needs in this arena We prefer 100+ beds, 1-2 story and all states considered (exception CT and MA) We will also consider Nationwide Commercial Opportunities such as:

Direct Private Lender www.MEANDASSOCIATES.COM 770-840-0112 or 770-840-0113 Fax: 678-302-6444

Urban retail Apartment Bldgs Fractured Condos Office Hotels

DistresseDBuyers@gmail.com

NICHE REPORTS

HARD MONEY & NON-PRIME Premium Listings

All Credit Considered Mortgage 240-314-0399 X 19

AFG LLC (Asset Funding Group) 720-889-1175

AgriCap Financial Corporation 213-542-5232

NEW

Fairview Commercial Lending 866-634-1270

Financial Resources Mortgage 800-950-6913 or ddexter@frmortgageinc.com

NEW

First Capital Commercial Fiance 713-267-4040

First Mount Vernon (866) 908-FMV1 (3681)

First Mount Vernon (866) 908-FMV1 (3681)

NEW NEW

Groupe 369 Corp.

630-396-6400

KENNEDY FUNDING, INC. 800-342-8500

Manaseh, Epharim & Associates 770-840-0112

Metro Funding Corp 866-302-6360

Private Money Direct lender - up to 70% LTV: Bridge loans, purchase & rehab, construction financing, raw land, no minimum credit score requirments.

Nationwide lending from $300k to $3 million, 24 hour commitment as fast as 5 days to close. HARD MONEY- MADE EASY Agriculture including facilities and part-time farms, commercial, special purpose properties No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours Real Estate based private money lender. Commercial & Residential Investment. Refi cash out allowed. Retail,office,multi-family, raw land, development & modular construction are our specialties. Common sense underwriting. No upfront fees! Email or call today.

Land, Land Acqusition & Development plus Construction Loans for clients needing fast, interim financing.

No seasoning requirements, No upfront commitment or processing fees, Minimum credit score 400 - DE, MD, VA, DC, NC, SC, GA, FL Minimal documentation required, Combined Loan-to-Values to 105% - DE, MD, VA, DC, NC, SC, GA, FL

Portfolio lender for commercial real estate loans Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land.

Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment.

Direct Lender with fast closings. Your source for international and domestic funding.

Direct lender specializing in short term bridge financing. Interest only.

No prepayment penalty. No points upfront. Commitments within 24 hours.

Brokers welcomed and protected.

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 lenderâ&#x20AC;&#x2122;s information on products, program, procedures, representations, and warranties for details.

42

August 2009

NICHE REPORTS

HARD MONEY & NON-PRIME premium niches continued…

Local direct lender (DC, MD and VA) specializing in bridge, construction, rehab and business loans. Loans are based on “subject to value”, 50% LTV, minimal documentation, EQUITY DRIVEN not FICO sensitive. Brokers are protected.

TrustCapital Investments LLC 301-503-2231

HARD MONEY & NON-PRIME Lender Listings Powered by TheLoanPost.com Advantage Capital Equity Solutions

800-223-3019

Hawkins Capital

801-936-5100

www.hawkinscap.com

AFC Hardmoney

813-387-3800 x 311 www.afchardmoney.com

Investor Funding

864-213-3951

www.4investorfunding.com

AgriCap Financial Corporation

213-542-5232

www.adcapequity.com www.agricap.com

J & J Financial

866-296-8246

www.10dayloan.com

All California Home Loans 877-462-3422 www.aboutcaliforniahomeloans.com/hard-money.html

Lakeside Financial Inc.

949-297-4180

www.nofico.net

Alliance Financial, Inc.

www.afiloans.com

Lib Properties, LTD.

404-256-8600

www.libloans.com

LNB Commercial Capital

321-214-0585

www.lnbcapital.com www.hardmoneymortgages.com

866-603-5999

Ameribank Mortgage

516-833-8834

www.ameribanksolutions.com

American Acceptance (cml)

800-452-9287

www.aamonline.com

Assurity Financial

866-841-7863

www.assuritywholesale.com

Magnolia Financial Consultants

601-428-1005

Meridian Group

800-901-9301

www.meridiangroupinc.com

818-342-2477

www.overlandfinancial.com www.pacificmortgage.com

Avant Capital Partners, LLC. (cml)

212-219-9419

www.avcapital.net

Overland Financial

Bay Equity

800-229-3703

www.bayeq.com

Pacific Mortgage Funding Corp. (cml)

562-864-4006

www.bluewaterfundingllc.com

PB Financial Group Corp.

310-289-0900

www.pbfinancialgrp.com

678-292-6984

www.piedmontcapitallending.com

BlueWater Funding, LLC

866-551-2583

Brookview Financial

877-734-2211 x 316 www.brookviewfinancial.com

Piedmont Capital Lending, LLC.

California Equity Lenders

818-584-2320

www.calequitylenders.com

Porter Bridge Loan Company (cml)

866-725-1777

www.porterbridgeloan.com

Capital Alliance

415-288-9575

www.calliance.com/index.php

Portfolio Mortgage Company

480-227-2857

www.portmort.com www.pfacapital.com

CFA Capital Partners (cml)

914-967-5780

www.cfacap.com

PFA Capital, LLC

800-531-4589

Crawford Park Financial

626-796-7979

www.crawfordparkfinancial.com

Rehab Funding

610-645-9939 x 310 rehabfunding.com

Cushman Rexrode Capital Corp. (cml)

925-988-7200

www.cushrex.com

Remington Financial Group

480-905-3239

www.remingtonfg.com

Diamond Bay Investments, Inc.

702-254-9303

www.diamondbayinvestments.com

Right Start Mortgage

800-520-5626

www.rightstartmortgage.com

Eastern Savings Bank (cml)

800-787-8187

www.easternsavingsbank.com

SBB Financial

866-358-7238

www.sbbfinancial.com

Emerald Financial

714-965-6688

www.eprivatemoney.com

SDI Funding

864-233-3337 x 3220 www.sdifunding.com

Emigrant Mortgage www.emigrantmortgage.com

800-Emigrant x mid atlantic

SmartServ Solutions

888-633-4778

Exeter Holding Ltd.

516-338-7500

Swift Funding

727-521-6633

swiftfundingcorp.com

TCRM Commercial Corp. (cml)

212-371-3933

www.tcrmcommercial.com

exeterholding.com

www.bronxhardmoney.com

First Credit Commercial Capital Corp. (cml) 407-843-6262

www.fchardmoney.com

First Mount Vernon Industrial Loan Assn 703-823-6800

www.fmv1.com

The Loan Doctors, Inc. (cml)

954-647-7679

www.regd506.com

323-377-0979

www.titanhardmoney.com

First Select Capital

888-376-5373

www.firstselectloans.com

Titan Hard Money

Global Lending Group

727-530-0110

www.glgiwholesale.net

Trust Deed Investments, Inc

415-760-2338

www.hardmoney.ning.com

GMC Mortgage Capital

954-332-3567

www.gmcmortgagecapital.com

West One Mortgage Corporation

818-921-7602

www.westonemortgagecorp.com

HARDDMONEYLOANS.COM

813-516-5210

www.HARDDMONEYLOANS.COM

WholesaleLending.com (cml)

866-303-6301

www.wholesalelending.com

Jumbo Premium Listings

NEW

Flagstar Wholesale Lending 866-945-9872

Fannie Mae High Balance and Freddie Mac Super Conforming products available up to $729,750 loan amounts

NEW

Guaranteed Home Mortgage Co., Inc.

Specialized Retail Platform for Experienced Loan Officers

888-572-3602 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

43

NICHE REPORTS

Jumbo Lender Listings Powered by TheLoanPost.com American Southwest Mortgage American Home Equity Direct Mortgage Wholesale Emigrant Mortgage www.emigrantmortgage.com EverBank Wholesale Lending Fifth Third Mortgage Flagstar Bank Florida Capital Bank Mtg Franklin American Gateway Funding Greystone Financial Home Savings of America

888-593-1003 www.amswmtg.com 714-661-5836 www.ahedirect.com 801-924-2300 www.solutioncenter.biz 800-Emigrant x mid atlantic 415-595-3968 866-492-0072 800-897-7222 866-295-0014 606-519-4165 800-355-5626 602-574-0100 972-235-7366

www.everbankwholesale.com www.53.com/wholesalemortgage wholesale.flagstar.com www.flcb.com www.franklinamerican.com wholesale.gateway-funding.com www.greystonefinancialonline.com www.myhsoa.com

ICON Residential Capital

888-639-5641

www.iconwholesale.com

Liberty Mortgage

800-986-2499

www.bbt.com/libertymortgage

MBS Mortgage Company

866-799-3696

mbs-mortgage.com

Presidents First

877-773-7178

www.presidentsfirst.com

Reunion Mortgage Inc.

559.476.0937

www.reunionmortgage.com

Security National Mortgage

801-264-1060

www.securitynational.com

Sierra Pacific

800-447-3386

www.spm1.com

Taylor, Bean & Whitaker

888-678-8547

www.taylorbeandirect.com

US Bank Home Mortgage

702-630-0770

www.usbank.com

Walker Jackson Mortgage

703-653-8183

www.wjmcwholesale.com

Wells Fargo

310-283-8411

www.brokersfirst.com

WestAmerica Mortgage Co.

303-771-2800

www.wamco.us

CONSTRUCTION/REHAB Premium Listings

Financial Resources Mortgage, Inc. 800-950-6913 or ddexter@frmortgageinc.com

NEW

Real Estate based private money lender. Commercial & Residential Investment. Refi-Cash Out allowed. Retail, office, multi-family, raw land, development & modular construction are our specialties. Common sense underwriting. No upfront fees! Email or call today.

1-800-342-8500

Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land.

Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment.

Manaseh, Epharim & Associates

New construction and rehab loans for all types of commercial properties.

Your source for international and domestic funding.

Kennedy Funding, Inc.

770-840-0112

Direct lender specializing in short term bridge financing. Interest only.

No prepayment penalty. No points upfront. Commitments within 24 hours.

Brokers welcomed and protected.

Metro Funding Corp 866-302-6360

CONSTRUCTION / REHAB Lender Listings Powered by TheLoanPost.com Ameribank Mortgage

516-833-8834

www.ameribanksolutions.com

Kennedy Funding

201-342-8500

www.kennedyfunding.com

Assurity Financial

866-841-7863

www.assuritywholesale.com

M&T Bank Mortgage

804-380-7465

wholesalemortgage.mtb.com

Broker Capital Funding

408-438-6939

www.brokercap.com

Everbank

415-595-3968

www.everbankwholesale.com

Mango Bay Mortgage

561-347-9811

www.mangobayinc.com

Excelsion Mortgage

888-578-5441 x 1

www.ExcelsionBrokers.com

Mission Oaks National Bank

805-889-0301

www.missionoaksbank.com

Federal Trust Mortgage

407-323-1833 x 153

www.federaltrust.com/brokers

Portfolio Mortgage Company

480-775-5150

www.portmort.com

First Mutual Bank

971-645-9140

www.washingtonfederal.com/wholesale

Unity Bank

904-727-7535

www.unitybank.com

Hawkins Capital

208-908-5596

www.hawkinscap.com

West One Mortgage Corporation

818-921-7602

www.westonemortgagecorp.com

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 lenderâ&#x20AC;&#x2122;s information on products, program, procedures, representations, and warranties for details.

44

August 2009

NICHE REPORTS

COMMERCIAL Premium Listings

All Credit Considered Mortgage

Private Money

240-314-0399 X 19

AgriCap Financial Corporation 213-542-5232

Fairview Commercial Lending 866-634-1270

Financial Resources Mortgage, Inc. 800-950-6913 or ddexter@frmortgageinc.com

First Capital Commercial Fiance 713-267-4040

Gregory Funding

NEW NEW

Agriculture -- Farms, Ranches, Facilities. Agricultural Operating/Crop Input Loans.

No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours Real Estate based private money lender. Commercial & Residential Investment. Refi-Cash Out allowed. Retail, office, multi-family, raw land, development & modular construction are our specialties. Common sense underwriting. No upfront fees! Email or call today.

Hard money, Bridge Loans and Permanent Mortgages with a focus on properties in Texas, the Southwest and the Mountain West

888-324-3578

Private portfolio lender funding small balance commerical loans up to $1MM. No credit score requirement. No pre-payment penalty. Up to 70% LTV. Foreclosure ok. Bankruptcy ok. Lending territory: AZ, CA, CO, ID, NV, OR

Groupe 369 Corp.

Portfolio lender for commercial real estate loans

630-396-6400

KENNEDY FUNDING, INC. 800-342-8500

Manaseh, Epharim & Associates 770-840-0112

Metro Funding Corp 866-302-6360

Mortgages/loans secured by real estate, all commercial property types and other fixed assets nationwide; Any property type, even raw land.

Specializes in development loans that need to close quickly, loans from $1 million & up. 2-days for commitment.

Acquisition, Refiâ&#x20AC;&#x2122;s, and Development Commercial Loans. Your source for international and domestic funding.

Direct lender specializing in short term bridge financing. Interest only.

No prepayment penalty. No points upfront. Commitments within 24 hours.

Brokers welcomed and protected.

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 lenderâ&#x20AC;&#x2122;s information on products, program, procedures, representations, and warranties for details.

TheNicheReport.com

45

NICHE REPORTS

COMMERCIAL Lender Listings Powered by TheLoanPost.com Affinity Bank

877- 862-7245

www.affinitybank.com

LNB Commercial Capital

AgriCap Financial Corporation

213-542-5232

www.agricap.com

American Acceptance

800-452-9287

www.aamonline.com

Arlington Richfield

248-613-7423

Apartment Lending

321-214-0585

www.lnbcapital.com

Magnolia Financial Consultants

601-428-1005

www.hardmoneymortgages.com

Mango Bay Mortgage

561-347-9811

www.mangobayinc.com

www.arlingtonrichfield.com

Midwest Financial Capital

317-844-7776

www.midwestfinancialcapital.com

303-771-1031

www.aptlending.com

Minvest Financial

877-317-0260

www.minvestfinancial.com

Avant Capital Partners, LLC.

212-219-9419

www.avcapital.net

Mission Oaks National Bank

951-719-1200

www.missionoaksbank.com

Berkshire Capital Financial, Ltd.

212-986-9890

www.berkshirecapital.net

MJM Capital Group

480-628-1943

www.mjmcapitalgroup.com

Blue Sky Commercial Funding

888-500-2583

www.bscfloans.com

Nationwide Commercial Lenders

800-830-5940 x 1 www.NationwideCommercialLenders.com

Brownstone Mortgage Capital

800-547-1285

www.brownstoneloans.com

New World Commercial Lender

561-628-2069

www.nwclender.com

Capital Alliance

415-288-9575

www.calliance.com/index.php

Overland Financial

818-342-2477

www.overlandfinancial.com

CapitalSource Finance

212-321-7215

www.capitalsource.com

CFA Capital Partners

914-967-5780

www.cfacap.com

CIT Small Business Lending Corp.

404-244-4592

www.smallbizlending.com

Coast Investors Capital

305-446-9125

www.coastinvestors.com

Commercial Capital Funding Corp

866-790-6925

www.ccflender.com

Commercial Hard Capital, LLC

832-607-6778

www.commercialhardcapital.com

Commercial Lending Capital

714-656-3943

www.clcnationwide.com

Commercial Loan Capital

877-473-6984

www.clcllc.net

Commercial Mortgage City

954-854-6853

www.commercialmortgagecity.com

Commercial Mortgages 101

800-763-3036

www.commercialmortgages101.com

Community Commerce Bank

916-648-2680

www.ccombank.com

Pacific Mortgage Funding Corporation 562-864-4006

www.pacificmortgage.com

Pacific National Bank

305-539-7675

www.pnb.com

PFA Capital, LLC.

800-531-4589

www.picconefinancial.com

PNC ARCS

800-275-2727

www.askARCS.com

Presidential Bank

301-652-1616

www.presidential.com

Pribank

866-811-9217

www.pribank.com

Prudential Mortgage Capital Co.

888-263-6800

www.prumortgagecapital.com

REM Capital

877-774-4240

www.remcapitalgroup.com

SF Partners Mortgage

305-774-0456

sfmortgagelenders.com

Small Business Loan Source, LLC.

512-215-2727

www.adelinerem.com

St. Cloud Mortgage

877- 653-3276

www.farmerloan.com

Cushman Rexrode Capital Corp.

925-988-7200

www.cushrex.com

Eastern Savings Bank

800-787-8187

www.easternsavingsbank.com

STA Capital Group & Advisors

866-610-4141

www.c-loandivision.com

800-333-9893

www.strongtowerfinancial.com

Excelsion Mortgage

888-578-5441

www.excelsionbrokers.com

Strongtower Financial

Griffin Capital Funding

800-710-6762

www.ysploans.com

TCRM Commercial Corp.

212-371-3933

www.tcrmcommercial.com

www.hawkinscap.com

Terrace Capital

212-671-1031

www.terracecapital.com

www.ifgloans.com

Trilogy Commercial Lending, LLC.

877-726-9433

www.trilogycl.com www.uboc.com

Hawkins Capital

208-908-5596

Integrity Financial Group

916-343-7559

Interbay Funding, LLC

877-207-6099

www.interbay.com

Union Bank of California

877-945-2265

Kennedy Funding

201-342-8500

www.kennedyfunding.com

West One Mortgage Corporation

818-921-7602

www.westonemortgagecorp.com

Lib Properties, LTD.

404-256-8600

www.libloans.com

WholesaleLending.com

866-303-6301

www.wholesalelending.com

Lighthouse Commercial

614-340-3894

www.Lighthouse-Commercial.com

World Capital Bancorp, Inc.

888-922-3003

www.worldcapitalbanc.com

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.

Continue to receive The Niche Report monthly In an effort to maintain a healthy circulation we will be deleting many aged subscribers.

If you haven’t already gone to our website and subscribed, do it now! e! s fre

It’

46

Be among the first subscribers to follow us on

August 2009

LENDER & RESOURCE DIRECTORY

All Credit Considered Mortgage www.weapproveloans.com Contact: Tim Boord Phone: 240-314-0399 X 19 Email: Tim.Boord@accmortgage.com

Best Rate Referrals www.bestratereferrals.com Phone: 800-811-1402

FAMB www.famb.com 800-289-9983 famb@famb.org

AFG LLC (Asset Funding Group) www.assetfundinggroup.com Contact: Jaye Kuchman Phone: 720-889-1175 Email: Loans@assetfundinggroup.com

Cruise4Two - Cruise Incentives www.Cruise4Two.com Shawn Sarnecki Shawn@Cruise4Two.com Toll Free 866-541-8077

Fairview Commercial Lending www.FairviewLending.com Phone: 866-634-1270 Fax: 404-634-0319

AgriCap Financial Corporation www.agricap.com Contact: Business Development Phone: 213-542-5232 Email: sales@agricap.com

CreditCRM www.creditcrm.com Phone: (877) 256-8162

a la mode, inc. www.alamode.com

American Pacific Mortgage Corporation www.apmortgage.com Contact: Melissa Arntzen Phone: (866) 625-9352 Email: info@apmortgage.com

Applied Business Software www.TheMortgageOffice.com Contact: A.J. Poulin Phone: 800-833-3343 Email: aj@absnetwork.com

ATTENTION LENDERS!!

Buyers of Distressed Debt Email: DistressedBuyers@gmail.com

DocMagic www.docmagic.com Phone: 800.649.1362

DoMoreLoans www.domoreloans.com Contact: Chris Phone: 949-273-8209 Email: Chris@domoreloans.com

EnTitle Direct Insurance www.entitledirect.com Phone: 877-936-8485

Express Notary Service, Inc. www.expnotary.com henry@expnotary.com

Financial Resources Mortgage, Inc. www.commercialloanresources.com Contact: David Dexter Phone: 800-950-6913 Email: ddexter@frmortgageinc.com

First Capital Commercial Finance www.dealsdone.net Contact: Mark Anthony McCray or Lauren Fritsch Phone: 713-267-4040 or 832-566-2001 Email: loans@dealsdone.net

First Mount Vernon I.L.A. www.FMV1.com Phone: 703-823-6800 Fax: 703-997-2499

Flagstar Whoelsale Lending www.wholesale.flagstar.com 866-945-9872 wlsc@flagstar.com

TheNicheReport.com

47

LENDER & RESOURCE DIRECTORY

Freedom Mortgage Corporation www.fmbranch.com Contact: Lynn Barry- VP, Director of Branch Operations Phone: 800.220.9498 Email: info@fmbranch.com

Cogent Road Inc. www.fundingsuite.com/demos Phone: 800-848-3162

Gateway Funding Diversified Mortgage Services L.P. www.gateway-funding.com Phone: 215-591-0222

Geraci Law Firm www.geracilawfirm.com (949) 379-2600

gotomeeting.com Try it free for 30 days promo code: AK16

Gregory Funding LLC www.gregoryfunding.com Phone: 888.324.3578 Email: info@gregoryfunding.com

Groupe 369 Corp. www.groupe369.com www.groupe369pr.com Phone: 630-396-6400 Email: info@groupe369.com

48

August 2009

Guaranteed Home Mortgage Company, Inc. www.ghmc.com and www.joinguaranteed.com Contact: Louis Tesoriero Phone: 914-696-3400 Email: ltesoriero@ghmc.com Influence Lead Management www.influencedp.com/leadmanagement Phone: 480-321-9006 Email: LM@influencedp.com

KENNEDY FUNDING, INC. www.kennedyfunding.com Contact: Jonathan Weiner, Chief Loan Officer Phone: 1-800-342-8500 Email: info@kennedyfunding.com

The Loan Post www.TheloanPost.com Phone: (877) 812-4327 Email: sales@TheLoanPost.com

Loansifter www.Loansifter.com Phone: 920-687-1222 Email: Sales@loansifter.com

Manaseh, Epharim & Associates www.meandassociates.com Contact: R.D. Walker Email: info@meandassociates.com Phone: 770-840-0112

The Mortgage Lender Implode-O-Meter www.ml-implode.com Contact: Randall Marquis Phone: 949-235-5271 Email: randall@ml-implode.com

New Jersey Association of Mortgage Brokers/MBA of New Jersey www.njamb.org 973.379.7447

Prospector Communications www.prospectorcommunications.com prspct1@prospectorcommunications.com Phone: 866-759-5799

quick qualifer software www.quickqualifier.com Contact: Thor Skonnord thor@mortgagesoftware.com Direct: 925-754-7444

RateLink Phone: 800-938-5193 Contact: Tom Champion Email: tom.champion@ratelink.com

TAMP www.ttamp.org Phone: 800-850-8262

Metro Funding Corp www.metrofundingcorp.com Contact: Jennifer Bernabeo Email: jennifer@metrofundingcorp.com Phone: 866-302-6360

TrustCapital Investments LLC Contact: Craig Severson Phone: 301-503-2231 Email: trustcapital@frontiernet.net

Mortgage Bankers Association events.mortgagebankers.org/96th_Annual Phone: 800-793-6222 Option 3

USHUD.com Contact: Paul Burnett, National Account Rep Phone: 443-603-1071 PBurnett@ushud.com

- continued from page 50

that to go down. And a lot of consumers are wicked upset about the whole thing.

Of course, how could they not be? Sure, some of the blame has to fall their way, but all you need to do is watch thirty-minutes of Helicopter Bernanke shoveling trillions into the banks, then a few Citibank celebrations at tony resorts, and then top it off with a slew of seven or eight figure executive bonuses… and next thing you know you’re sharpening your pitchfork and wondering where in the world you put your torch.

You don’t have to be a political analyst to recognize that no one has learned a gosh darn thing around here.

Hubris, Mr. Yingling… incalculable amounts of hubris… that’s all I have to say.

Even so, next month the ABA is going to be offering “Get Smart About Credit Day,” where someone will educate those in attendance on how to use credit wisely and responsibly. When I first read the flyer, I assumed it was the bankers that were going to attend. Then I saw that… nope, its bankers that are teaching the “use credit wisely and

www.mortgagesoftware.com Marketing Tools & Calculators for the Loan Officer

The ideal solution for Conventional, FHA & VA calculations!

Our loan officer software creates Open House Flyers with finance options. It is easy to learn and easy to use. It is a mortgage calculator.

Down payment, closing costs and prepaids go into the finance sheet instantly. Import pictures and logos with a mouse click.

You can also use it as prequal software and to show good faith estimates. It includes a client database for home buyers, refinance clients and sellers. You can give royalty free installations to your Real Estate agents as a PR tool. It’s great for FSBO’s.

Increase

your business by sharing the software with Real Estate Agents: No additional license fee.

Vista compatible. Prints in English & Spanish.

responsibly” class.

Of course they are. And after that, I hear O.J. Simpson is delivering a lecture on diplomacy, followed

by Dick Cheney, who will argue in favor of transparency in governmenr.

The hubris of Mr. Yingling and his American Bankers Association simply knows no bounds. Get Smart About Credit Day? Really, Ed? How about you guys go first? When I screw up, I pay late fees and ding my FICO score … you guys screw up, on the other hand, and the planet files Chapter 11.

The more I hear from Mr. Yingling, the more I want to make fun of his name. I didn’t say I was proud of such an instinct and I’m certainly not going to succumb to such an immature impulse but bless his heart, he’s ringding-a-ling annoying, is he not?

Here’s one last example…

The FTC has law enforcement authority over the Truth in Lending Act, the Home Ownership & Equity Protection Act, the Consumer Leasing Act, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, the Credit Repair Organizations Act, the Electronic Funds Transfer Act, the Telemarketing and Consumer Fraud & Abuse Prevention Act, and the privacy provisions of the Gramm-LeachBliley Act. However, banks, thrifts, and federal credit unions are exempt from the FTC’s jurisdiction.

Of course they are. Why wouldn’t they be? After all, the FTC would likely have its hands full enforcing Truth in Lending, Fair Credit Reporting, Fair Debt Collecting and Electronic Transfer rules at grocery stores and car washes. Those sort of things come up in those places all the time, don’t you know.

Well, Ed… I just read that Sen. Dick Durbin is bringing the bankruptcy reform bill back to Congress this fall. The bill that can stop the foreclosure crisis in its tracks. But we don’t really need it, right Ed? Because we can all just call our banks directly and ask for a loan modification? Because the banks are here to help, right?

Sorry, Ed. Not this time.

Martin Andelman is a staff writer for The Niche Report.

He also writes an almost daily column on ML-Implode.com called Mandelman Matters. You can email him at mandelman@mac.com.

Call us toll free at: 888-684-9273 (mtg-ware) or e-mail: support@mortgagesoftware.com TheNicheReport.com

49

ABA president edward yingling Hubris never before contemplated

BY MARTIN ANDELMAN

I

remember when I learned what the word “hubris” meant and I’ve considered it a very good word ever since. As a writer, you sort of collect good words, carry them around with you, waiting for the chance to insert them into a sentence, thus rendering that sentence more powerful, or at least more complete. Like a cherry placed atop the whipped crème on a hot fudge sundae. Ta da.

Well, less than two weeks ago, as I listened with great interest to the testimony before Congress of one Mr. Edward L. Yingling, the President and Chief Executive Officer of the American Bankers Association, I discovered that I had never even considered hubris’ true potential before. When he was done, I stood up and exclaimed: “Why, shave my head and call me baldy!” And that’s not something I find myself exclaiming all that often, truth be told.

If you didn’t see it, you may have missed something on the scale of Haley’s Comet. It may happen again someday, but it could be a hundred years from now before it does. Remember when Bill Clinton said: “It depends on what the definition of "is," is,” on television? Well, it was kind of like that… but to the power of ten squared.

They were all up there in Congress and Mr. Yingling was being asked to voice his views on President Obama’s newly proposed federal agency for consumer protection.

The same agency I was making fun of when the President announced it a couple of weeks ago because I simply couldn’t see it as the cornerstone of the regulatory change this country needed to prevent the nuclear meltdown of our financial markets from happening again. I’m often skeptical about federal agency effectiveness, so sue me.

50

August 2009

Here’s what Mr. Yingling had to say…

It is now widely understood that the current economic situation originated primarily in the largely unregulated nonbank sector. Banks watched as mortgage brokers and others made loans to consumers that a good banker just would not make and they now face the prospect of another burdensome layer of regulation aimed primarily at their less-regulated or unregulated competitors. It is simply unfair to inflict another burden on these banks that had nothing to do with the problems that were created.

C

M

Y

(Emphasis my own, but who on this earth could blame me for adding it?)

I know what you’re thinking: “Oh, no he didn’t.”

But, oh yes he did. There’s not a chance I’m capable of making up something like that.

So, that’s the way it’s going to be, is it? The good bankers “watched” helplessly as mortgage brokers robbed the banks? And now they’re being burdened unfairly.

Sniff, sniff… man, I had no idea. The banks were just innocent victims in all of this … It wasn’t their fault.

Wow. Holocaust deniers have nothing on this guy, let me tell you.

You see, first of all, I was under the impression that the commercial banks bought almost all of the nonbank mortgage and finance companies, before they imploded of their own volition. But in this case, besides just considering the obvious… there’s also the brazenly evident.

Who the heck made all those inconceivably appalling lending decisions? Wasn’t it the banks that let borrowers rack up colossal amounts of debt relative to their incomes? No? Well, alrighty then… but let’s go find who ever that was and kick their butts, because they were out-of-control irresponsible to allow stuff like - continued on page 49

CM

MY

CY

CMY

K

BODA Publishing, LLC, PO Box 494,Bentonville, AR 72712

PRSRT STD U.S. POSTAGE

PAID

PERMIT #379 BOLINGBROOK, IL

"TheNicheReport is a national trade publication dedicated to wholesale and correspondent lending."