TNR - February 2010 by The Niche Report

Issue 031 February 2010 TheNicheReport.com

Center Stage with 50 Bringing Lead Generation 14 Successful 30 18 up the Rear: Mortgage Lead Fuel for Your Zillow Mortgage 速

Gen on Facebook

Business

Market

Barack Obama

The Hyper-Targeted ad.

Ethanol, solar, wind, and lead generation will power 2010.

The Niche Report talks with Mary Miller of Product Management.

Mandelman takes on the President.

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CONTENTS

Issue 031

February 2010

Lead Generation Fuel for Your Business Ethanol, solar, wind, and lead generation will power 2010.

NICHE REPORTS prime & FHA

pg 43

HARD MONEY & NON-PRIME

pg 44

COMMERCIAL

pg 45

FOUNDER & PRESIDENT Robert Pegg robert@nichereportonline.com

bliss sawyer

CO-FOUNDER & PRESIDENT David Pegg david@nichereportonline.com MANAGING EDITOR Stewart Mednick stewart@nichereportonline.com EDITORIAL / CONTENT MANAGER Kristen Moser kristen@nichereportonline.com

Successful Mortgage Lead Gen on Facebook

Martin Andelman Mandelman Matters Ml-Implode.com Mandelman takes on the President.

Dennis Yu CEO BlitzLocal The Hyper-Targeted ad.

What Sales Crimes are You Committing? Tom Ninness Vice President/Regional Production Manager, Cherry Creek Mortgage You are going to do time ... properly.

Appraiser Sound Off: Appraising a New Era Carol Rockman VP and Co-Founder www.nvs.coop 2010, an appraisal odyssey.

Center Stage with Zillow速 Mortgage Market The Niche Report

February 2010

Bringing Up The Rear: Barack Obama

DEPARTMENTS

FROM THE EDITOR'S DESK

LETTERs to THE EDITOR

mbs warroom

37 39 46

RULES & REGULATIONS HEADLINES TIP OF THE MONTH LENDER & RESOURCE DIRECTORY

ACCOUNTING MANAGER Shawna Ingram shawna@nichereportonline.com Advertising Director Jessica Grizzle Jessica@nichereportonline.com Advertising sales Heather Bopp Heather@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 Karen Deis Stewart Mednick Adam Quinones CONTRIBUTING AUTHORS Tom Ninness Carol Rockman Bliss Sawyer Dennis Yu

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FROM THE EDITOR'S DESK

As 2010 is a new beginning for the year and the decade, so is this issue of The Niche Report. As Managing Editor, I want to thank all of you for reading this publication. Your dedicated following is why we strive to maintain a high quality magazine with informative and sometimes controversial articles. I have been with the magazine from the beginning, first as an author of features articles, then as the first monthly columnist, adding Copy Editor to my responsibilities and now as Managing Editor. I have received many emails and calls over the years from readers around the country, all praising the copy of the latest issue, commenting on an article that struck a chord with them or venting about a topic that needs change in the industry. Robert Pegg, the founder, has written this page since day one as “Note from the Founder.” Periodically, he has incorporated “Letters to the Editor.” With the New Year comes change, and so now I will be taking the helm here and will be introducing each new issue with my wisdom and wit, “From the Editor’s Desk.” Not saying that Robert is not a good writer, just saying he is not a good writer. And Robert, if you are reading this, stick to the technical side of the publication, you do that well. This month’s Center Stage, The Niche Report talks with Mary Miller, Director of Product Management for Zillow.com, who provides borrowers a hassle-free, anonymous way to receive unlimited and customized mortgage quotes directly from lenders, for free. We add a new regular monthly column that is focused to appraisers. As an integral part of the industry, they have limited exposure to nationally circulated copy. As a finance professional, I welcome an appraiser’s point of view and pearls of wisdom every month, and I hope you, as the reader, will send me an email to let me know how you like the new column. I am so privileged to have Bliss Sawyer write an outstanding article on lead generation. As a nationally recognized authority on relationship based marketing, she has bunches of great advice to help you jump start the new year with leads to fuel your business. If you have never heard of her, then read the article on Lead Generation then visit her website. Dennis Yu, CEO of BlitzLocal, has endeared us with an article on one of the most creative and cost effective ways to market; on Facebook. You have to read this article if you have a Facebook page. This is the kind of unique information you can only find in The Niche Report. One of the greatest gifts that can be given to anyone is the opportunity to have a successful business. I hope The Niche Report provides the knowledge and information you need to be successful. Cheers!

Stewart Mednick

TheNicheReport.com

Letters to the editor

Article on House Painting (Future of the Mortgage Broker) Great article, and precise direction. Mortgage Broker Industry re-positioning is exactly what's needed. It's friggin amazing the world could come to believe an industry full of people who needed only a 70% passing rate of one of the easiest license exams in the country, could bring the financial world to it's knees.....we're not in Salem anymore Toto. Back in 1988, while wearing my black pointed hat, I read a few books by Al Ries and Jack Trout and the positioning book was one of the best business books I've read to this day. Of course I haven't read your book yet. Ironically, the US auto industry was one of their subjects and it's apparent the auto executives misunderstood, I think they heard "If it IS broke, don't fix it." While I have your attention, I should note that I loved the HVCC article. I was beyond fired up while reading it, and made copies and passed them out to a dozen mortgage brokers and appraisers so they could become more aware and share in my anger.....misery and angry people love company. In fact, all of your articles I've read in the Niche Report have been educational and entertaining. Keep those articles coming. Thanks. Bryan Jacobs J.V. & Associates, Inc. Broker/Painter *** The company I work for is a mid-size mortgage banking company that specializes in servicing the mortgage broker community. We are holding our national meetings tomorrow for all of our wholesale lending branch managers so I was particularly interested in Mr. Andelman’s feature article (on the future of the mortgage broker). The future of mortgage brokers is certainly a very important topic in 10

February 2010

the mortgage industry. After laboring through the entire article, the only reward was that it ended. Volumes and volumes of dusty quips are no compensation for an article that contains no knowledge of the mortgage business, mortgage brokers, the financial markets, or even sales. The piece didn’t even contain a solid opinion as far as I could tell. Mr. Pegg, this was the first issue of the magazine I have seen and if it weren’t for the advertisements I wouldn’t know what it was about. You can do better. Mr. Andelman, write about something else, you can do better. Regards, Mr. Johnson If I was a betting man, I would say you didn’t make it past the first two pages. If you had, you would have seen a very positive message (and philosophy) for the mortgage broker. Folks, this is what happens when ADD goes untreated. *** Hello Martin, I read both of your most recent articles last evening while in bed and at points laughed so hard my wife finally asked me to kindly move to the living room to finish! It could have been worse. Thank you for the shock therapy and the levity you bring to my thought process. I really appreciate the effort you put in to your writing and look forward to more pearls of wisdom. All the best to you and yours this Christmas season. Tim Laudermilk Christensen Financial *** I want to point out something missing in this industry message: Not only were we compelled (by a 10-20 page contract) to play to the tune the banks whistled IF we wanted to direct the borrowers to use THEIR money, we continue to do so even now. The recourse against a

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Letters to the editor

mortgage broker that originates a loan that is later found to be even remotely suspected of being fraudulent ((triggered by a default in payment)) (the situation where a consumer simultaneously buys multiple properties and calls them all "owner-occupied" seems a quite popular theme), is step: repayment of default deficiencies to the servicing lender is the most frequent penalty. This is one feature of that 1020 page agreement for our "using" bank moneys to help consumers get into debt and hold a piece of the American Dream. It's one small reason why so many brokerage houses have folded- to avoid the recourse actions. But here is more for you to consider: you have given a "positioning" value to the other "brokers" (Insurance, real estate, investment) in your life, and concluded that each of them also altruistically represents YOUR best interest. I would differ: I know far too many "brokers" that make decisions based on the prospective residual income a policy or annual fee might generate to their own enrichmentthe difference between what is happening with mortgage brokers and these other "agents" is the mortgage broker was tied to the American Dream: the "HOME"...and not everyone wants insurance or stocks...but most everyone wants a place to call home. If the truth were told, the mortgage broker is compensated fractionally in contrast to the typical Realtor, Life Insurance Agent and Investment Broker--dollar for dollar, relative to professional expertise and the value of the asset or benefits the consumer is acquiring. Ever ask your Insurance agent how much he makes annually, and how many clients with renewing policies he services? Ever ask your Investment advisor about his income and what his residuals are for aiding in the management of how many dollars for how many clients? I suspect they will both blush, and change the subject. I once was told the best way to select a good stock broker was to ask to see his/her personal taxes & financials. How they manage their own is a good indicator of what they will do for you- And I am not terribly optimistic that they all work as altruistically as you suspect them to. Do they represent your best interest, or that of the dominant source of their fee incomes (the investment "sources")? Most Realtors in this country are paid by the seller- not the buyer. It's a professional courtesy and industry standard for the buyer’s agent to get paid via a split (posted in the Multiple Listings) with the listing agent; the standard for the industry has been 5 to 7% (and declining). It's a published agreement the agent puts into the MLS- and often the split 12

February 2010

is weighted heavier to the buyer agent to entice showings on the property. Sorry if pulling back that curtain shatters any images. Don't let it get to you- read Freakonomics. Thanks again for sharing - I agree with you that positioning is (should be) our objective, and doing my part every day for clients that I have refused to leave abandoned as "mortgage orphans". Be well, Laura Roderick CMPS NowValley Mortgage Planning *** When I received this issue of TNR I opened it as I usually do. This time, since I am a past (2007) President of one of NAMB’s state associations (Colorado) I was drawn to the lead in to your article. The tongue in cheek treatment was refreshing and the Letterman approach was fun. But, at the end of the day, what I would really be interested in is how do those of us who are tilting at the Federal windmill gather enough momentum to get the beltway forces to recognize how “silly” and misdirected their solutions are? Before you answer and tell me I am wasting my time you should know that I founded a web/email-based B2B effort whose sole reason for being is to get independent brokers (I guess that species is already extinct, having been revolutionized into MLO’s) the information they need to do a few things and then to get them to do it: 1) Recognize and accept the fact they are in a very oppressive tunnel; 2) Recognize that the light at the end of the tunnel is probably a train, not the sun; 3) Finally, wake up and realize that their associations don’t get it done. With <3% representation neither NAMB, nor CAMB can create the momentum to combat the common enemy(ies). Without a major change in which the association identify, adopt and vigorously communicate a USP/VP that actually drives a useable benefit they will never get “it” done; 4) Adopt the idea that if magic can be worked with the remaining 150,000 small, independent distributors to coalesce around a single voice on the key issues that we may be able to make enough noise to make a difference; 5) Firmly believe that if we continue to act the way we have for the past two decades, the bankers will prevail;

Letters to the editor

6) Understand that if the bankers do prevail we will all be earning our livings in other industries or we will largely be commission based employees working for those banks or their subsidiaries and affiliates, not business owners; 7) Operate on the faith that if we change our attitude, activities and approach and begin to understand and leverage the fact that we are still a viable alternative distribution channel for hundreds of lenders who will survive as independent companies after whatever consolidation that might happen, happens and; 8) If we ACT with a common purpose and common theme and offer solutions to the Feds before they offer NPRM’s for comment we will have a chance to change our fate. I agree with much of your commentary, especially the idea of trusted advisor and what we should all be doing with that as the foundation for education, business models, communication and customer approach; but absent developing a collective voice (I am not advocating the overthrow of the existing national or state association (primarily because with less than 4,000 active professional members they do not need to be overthrown and I am an active member myself ) which can be done using viral internet processes, I hope; there won’t be a “we” and the total absence of noise when “we” no longer exist will be so subtle the only people who will know we’re gone will be the Yinglings of the world who will have to find someone else to blame for the next “unhappy surprise”. It is always a pleasure to meet another OOTB thinker. I never made it into the mortgage box and so I am having a tremendous amount of fun mucking about trying to tilt at the very windmills I founded IMMAAG to go after. Anytime you’d like to exchange notes, let me know. And, say hi to Robb for me. Regards, Bill Kidwell, GMA President, IMMAAG 2007 President, Colorado Association of Mortgage Brokers 2006 Colorado Mortgage Broker of the Year *** Andelman is either just a negative person Or a Mortgage Banker (broker with a warehouse line) looking to scare small broker shops into running into waiting arms

of a Net Branch "Solution"? Just this one broker's opinion based on 25 years in the business. Has he not heard of the Newly Created NMLS? Why go to the trouble for all these regulatory hoops, testing, finger printing etc etc etc etc., if the Broker was "on the way out". Sure, we ALL know about the lobbyists for the Big Four Banks and their deep pockets and strangle-hold on law makers on Capitol Hill. But at the end of the day, less competition, large big brother impersonal banks are not what the consumer wants. To live in a Socialist type of arrangement without the power of choice, is where this Country will be if the Broker/Dinosaur theory comes to fruition! I feel our Government most of the time, doesn't give our citizens enough credit - law makers (lobbyist money is a big part of it) must surely be of the opinion that the US consumer is just ignorant and will buy whatever they want to put before us, no matter how limited the choices might become? Otherwise why re-elect the last President for a 2nd term, unless we aren't very bright, right? Then, hey, maybe we're also dumb enough to buy into this B of A, Chase, Citi, and Wells or the Highway mentality, when we want to buy and finance our next home!!?? Andelman writes from a Glass Half Empty mentality regardless of being funny or not. We ALL know what the Big Four Banks are out to accomplish - they tried running Realtors out of the game back in the mid 90's too, remember? If the Mortgage Broker is going to soon become extinct, then answer One Question for me please - "Why on Earth would the Government go to All the Hoopla of Setting up this Over-sight Organization (NMLS) if Brokers were becoming obsolete?? I'm a 25 year mortgage veteran, through two prior good sized market down turns, none like this. One thing I've learned in 3 decades is the simple undeniable fact Mortgage brokers Get the Job Done!! Something like 70% of ALL Mortgage Originations/Closings are done thru a Mortgage Broker. We just need to keep a watchful eye on the bad apples who are only out for a quick buck in boom times, no matter the costs or wake they leave behind and that Includes Wall St. Investment Bankers and basically All in the industry who get Too Greedy and do not put the Customers Needs before their own! Thank you, Tom Purcell Pinnacle Mortgage & Realty Group TheNicheReport.com

Successful mortgage lead gen on facebook The Hyper-Targeted ad by Dennis yu

acebook is the second most popular website on the Internet, making up 25% of all page views. You need to be there, but how do you do it profitably? You’re a business person wanting to generate mortgage leads, not look at last weekend’s drinking pictures. Follow these steps and you’ll discover how to use Facebook for your business. But first, let’s discuss how Facebook ads diff from your Google search ads. When someone searches Google for “mortgage refinancing”, for example, they are indicating an immediate intent. They are actively looking at that very moment and want to consume ads. Unlike Google, on Facebook you’re not targeting people at the instant they are looking. Instead, you’re getting them earlier. You’re building trust and awareness, such that when that time comes for a mortgage modification loan, they will select your ad over all the other advertisers. Familiarity breeds trust. This is similar to brand building via traditional media, except with some measurability. Think of social media advertising as a hybrid between the brand awareness of offline media with the targeting

February 2010

and measurement of paid search. In the AIDA funnel (Awareness, Interest, Desire, Action), you have to spread your marketing and advertising across different points in this funnel. When people are making considered purchases, it takes multiple contacts to develop sufficient Awareness and Interest such that you can convert them in the Desire and Action stages. I have conducted studies to show that for every one lead generated from a display ad (a fancy word for banner ad or advertisement that is shown somewhere other than next to search results), that advertisers get as many as 7 additional conversions from people who saw the ad, but didn’t click on the ad. In other words, these people saw the ad and later filled out a request form or made a phone call. Other ad agencies have seen multiple conversions between 3 and 10. Thus, if your advertising is really driving a 5 to 1 lead ratio, your $200 cost per call might actually be only $40—and you might be unknowingly shooting yourself in the foot. Fortunately, there are ways to measure this phenomenon, called a view-through conversion, so you can see it in action in your campaigns. Another key insight is how to target potential customers on Facebook. Facebook is not a keyword search engine—it’s a people search engine. So instead of targeting keywords, you are targeting people. On Google, you’re buying keywords such as “mortgage quotes”, “refinance jumbo loan”, and so forth. Now how do those keywords tie to people? Do people who search those keywords tend to live in certain zip codes, fall in a certain age range, watch certain TV shows, drive certain cars? You can target those variables as a proxy for keywords.

And when you do run targeted ads on those folks, you’ll not see immediate conversions—you’re building trust and awareness with the users. With PPC (Pay Per Click) advertising, you see immediate conversions, since you’re targeting the bottom of the conversion funnel—with that conversion taking credit for the work that your other marketing did earlier. It may take a 3-month investment to start to show returns on your social media advertising—but when you do, especially if you’re targeting a small neighborhood, then you’ll likely be THE dominant player in town. Anyone on Facebook in your town that fits your demographic will see you any time they are on Facebook—they’ll remember your name and tell their friends. A massage therapist client in Boulder told her how strangers would come up to her in the street, asking if she was the massage therapist showing up on their Facebook— and then to ask how she did that. The level of competition among local service firms is so low that the price of inventory is low. And, thus, it’s relatively easy to blanket a small or medium sized town. If you serve all of Chicago or Manhattan, we’re sorry—this might not work for you unless you have $10k a month. But if you’re in a town of under 500k residents, you can dominate locally for $1k a month. It’s the equivalent of being able to stick yard signs at the homes of 25% of the people who you’d most desire as leads. Try it for a month and see what kind of buzz you generate. That’s the hyper-targeting secret—you can target locally and at such a low cost, you can have the impact of radio or TV at a fraction of the cost and with far less waste. But that’s not enough. Just because your ad loads on a page doesn’t mean anyone sees it or will click. Remember that your ads are appearing on the far right side of the screen, away from where the viewer is focusing their attention. You want your ads to be eye catching and emotionally interesting. Don’t just copy over ads from your other campaigns—that’s boring. Make your ad social— relevant to Facebook—and you’ll be able to get them to click on it. An effective social ad has 3 components… • The attention grabber • The message • A call to action

With Facebook ads you have the headline and the image for the attention grabber, while the message and call to action are in the ad copy. Generally the call to action should come last. Here are a couple examples of what your ads might look like. Which do you think would perform better? It is hard to know if you don’t test them. What if you’re targeting this ad to people who like red Jettas? (yes, you can do that). That’s why you should always test different combinations of headlines, images, ad copy, and targeting. Hints: • Showing a pretty smiling face in the ad, combined with a question will usually work. If it’s your face, great. If it has to be a model, fine—then say in your

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ad copy “We got your attention, didn’t we? So will our low refinance rates. Call Mary at 123-5551212.” • Aim for a CTR of above 0.2%-- anything less and your targeting is not precise or your ads aren’t interesting enough. • Don’t have a headline that says “Refinance now for 5.15%” or something directly like your PPC ads. “Are you paying too much?” or “My mortgage is ridiculous!” with a dancing green lizard will draw their attention more. Remember how effective those dancing girl ads or “shoot the monkey” ads were? Not only was the CTR higher, but conversion rates didn’t suffer. Make sure you aren’t blindly trying different combinations without knowing which is the most effective. Although Facebook does provide information such as cost per click and click-through rate, it does not tell you what the viewer does after they click through to your website. That’s why tools like Google Analytics are absolutely necessary for optimizing ads and calculating your return on investment. As you begin your first Facebook advertising

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campaigns, be patient. You may have to wait a few weeks to have enough data to be able to draw conclusions about your different ad variations—as well as to test a number of combinations to find the ones that perform. Who knows what might work? We’ve seen clients succeed by targeting the names of their top competitors—yes, you can do that. The mortgage lead gen space is competitive. You might not have millions to spend. And you need every advantage you can extract from your precious marketing dollars—to measure your ROI via how many emails you get, calls you receive, and loans you originate. There is a lot more advanced ground we can cover, such as how to tie in Facebook fan pages to your advertising, integrating Facebook campaigns with twitter and your website, running contests on social networks, grabbing a vanity url (Facebook.com/mybusiness), and so forth. I wish you all the best of luck with your Facebook advertising efforts. If you have any questions on these or advanced topics not covered here, feel free to send me an email at dennis@blitzlocal.com. I promise to respond to all questions from The Niche Report subscribers. Dennis Yu is the CEO of BlitzLocal, an online ad agency specializing in local search and social media—helping your business get found online and driving calls to your phones. Clients include Equifax Corporation, California Pizza Kitchen, World Wrestling Entertainment, Quiznos, March of Dimes, and businesses of all sizes that want to drive more leads online. Dennis is a noted international speaker and author, having appeared on NPR, CBS Evening News, TechCrunch, KTLA, Search Marketing Strategies, and other media.

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Lead generation Fuel for your business Ethynol, solar, wind and lead generation will power 2010 by bliss sawyer ead generation fuels your business with referrals and can keep a pipeline filled with loans. Utilizing a variety of ways to generate those leads will help you to grow a strong referral-based origination business that will withstand all the product changes and rate fluctuations. In todayâ&#x20AC;&#x2122;s market, it is essential that you have a consistent flow of prospects. Yes, loans are more difficult

to complete and less borrowers qualify; but there is also less competition. Many borrowers no longer have a connection to someone in the industry. Realtors have also seen the departure of loan officers and many are looking for a solid, trustworthy originator to add to their team. Reaching out with consistent, creative marketing will help you reach these borrowers and Realtors. Many loan officers are stuck in a rut and often do not feel comfortable trying new marketing ideas or strategies. These are the same loan officers that wonder why their phone isnâ&#x20AC;&#x2122;t ringing with prospects or blame the market for their low production. During all of my coaching and training, I emphasize that if your marketing is based on building and strengthening relationships then the leads will

follow and your business will steadily grow and be strong during any type of market. “Build it and they will come.” This quote from the movie “Field of Dreams” symbolizes to me times when effort is required and yet you perhaps will not be able to see immediate results. This is why so many are not able to succeed in this industry or get by closing just a loan or two a month; they don’t take the time to build their business with relationships. Building a marketing system based on strong relationships requires an enormous amount of work and there are times when you definitely wonder if it is all worth it. Yet, the potential for high income and even higher job satisfaction are there for anyone willing to do the work. Top producers understand the effort it takes to succeed and they are willing to put in the time and energy which bring exceptional results. So how do you build a strong lead generation system? If you would like to grow your business to the next level and start to see your phone ringing with referrals and your pipeline filled with quality loans, there are a few necessary steps. Take these ideas and build your own marketing system. Schedule in time EVERY DAY to be working on your marketing. There is tremendous value in staying focused and simply “doing” your marketing each day. These steps can easily be broken down into three categories: 1. Sphere of influence marketing 2. Database marketing 3. Realtor marketing

You can get by with just one or two of these and still run a profitable business, but if you are reaching for top producer status then focusing your energy on all three is the easiest way to attain that goal. Here are a few specific things you can do for each of these strategies that will greatly increase the chances of your success in 2010.

Sphere of influence. How many people know who you are and what you do for a living? This, quite simply, is your sphere of influence which then can become your database. The harder you work at growing this group and then maintaining a strong relationship the greater your referral network will grow. Your sphere of influence, if utilized correctly, is a goldmine. The key is to continually grow and market to this group. Your sphere of influence includes past, current and potential clients, friends, family and neighbors, business associates and all others that you have contact with in your daily life. Work diligently to obtain contact information (including email addresses) for these people. This will be a large task at first, but is well worth the effort. If you have not been working on growing your sphere, it may be small. Set realistic goals to increase your database each week. This will necessitate that you to get out and network. Get involved in things that will

give you the opportunity to meet new people. Volunteer to be on a committee with your local Board of Realtors. I recommend one that puts you in front of Realtors as much as possible. My personal favorite is the new Realtor orientation. If you have a chance to teach a class or other type of instruction, this will help to build your reputation as an expert which is priceless in this industry. Get involved in things that you are passionate about and volunteer to be in a leadership role. This gives you credibility and the opportunity to meet new people. I also think that being involved with your children’s school, sports teams or other interests can have a positive impact on your sphere of influence. One of the first things people want to know when they meet someone is what you do for a living. I certainly do not recommend you walk around passing out business cards, but as you get to know more people it will be a natural evolution for them to come to know you. Have something of value that you can offer to send them in order to obtain their contact information. I utilized a one page report title “What is Your Name Worth” that gives people information on how to protect their name. This is very non-intrusive way to gather their address and email.

Database marketing. This is one of my favorite topics, primarily because I personally have experienced the tremendous growth in my own production from this strategy. Yet many loan officers don’t spend the time and money marketing to their database. Reaching out to your database is what I call warm-marketing. It is much easier to generate leads from sources that know you and trust you than to try to build a business through cold-marketing to people that have never heard of you. Once you have put together your sphere of influence, WHEN TIMING IS A NECESSITY, YOU NEED A COMPANY LIKE NATIONWIDE CAPITAL GROUP, CORP. Location may be the first rule of real estate, but acting fast is second. Working with experienced professionals such as the people of NCGC means funding your loan as quickly as possible and moving on to the next one. Contact us today to discuss your Commercial Lending Requirements. Nationwide Capital Group Corp.

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the next step is to reach out on a consistent basis with a strong message. Utilizing the four levels of communication will greatly increase the opportunities for your sphere to refer business to you. Email, postal mail, phone and inperson strategies should all be utilized in your marketing plans. You have the ability in your communication to educate and train your sphere that you work on referrals so when they do have an opportunity to direct a loan, you are the first person they think of. Although email is the lowest form of communication, it is a wonderful communication tool. One caution I do have is that you must be careful with mass emails. Tracking is essential to make sure your message is getting opened and read. Utilizing a system such as www.Velma. com will help you not only track your emails, but also stay compliant with anti-spam laws. One step up from email is postal mail, one of my favorite ways to stay in touch. I highly recommend sending something 12-15 times each year. Nine of those could be a simple recipe or other type of postcard just to remind them of you and how to get in contact with you. (Remember to ask for referrals in every communication.) The other 3-8 touches would be something of value such as information, coupons, newsletters, magnets or holiday and birthday cards. Make it as personal as possible and include your picture and signature to reinforce who you are. The next level of communication is reaching out by phone. With this, your sphere is able to hear your passion and knowledge for the mortgage business. You are able to connect on a personal level and they can ask questions in an informal setting. Once a year, minimum, I recommend that you contact your people to see if they have any questions or concerns with which you can help. This gives you a wonderful opportunity to ask them “by the way, do you know of anyone looking for a mortgage at this time?” They may not immediately have a name, but you have reinforced that fact that you work on referrals. Often, loan officers will see referrals weeks after contacting people, but can directly tie it to their phone conversation. The highest level of communication, of course, is in person contact. With Realtors, builders and other professionals, it is fairly easy to drop in, take them to lunch or have contact in some way. With the rest of your sphere, it may take a bit of creativity. Have a customer appreciation event and invite your entire sphere of influence. You can keep it small with an open house or

Realtor Marketing. Many of us in this industry have a love/hate relationship with Realtors. I’m going to give a few tips that, if consistently followed, will allow you to work with Realtors that you enjoy and in turn, value you as a professional. Develop a core group of Realtors. Come up with a list of 10-12 Realtors you want on your list and gather all their contact information and birthdays. Your list should include agents you currently work with as well as those you want to develop a relationship with. Deciding on which agents to target can be difficult. Here are a few suggestions: • Your manager - he may be aware of who would fit well with your personality. • Title officers or title company staff • Friends/family – find out Realtors they personally know or have used in the past as this may open

doors for you. • Realtors you currently know or work with – ask if they would recommend any agents in their office that you could successfully target for future business. • New Realtors – 80 percent may quit by year two, but you may find a superstar! Your list is not set in stone – be flexible with the names placed on this list. Over time, you will get a feel for prospects that are worth your time and effort and those that are not helping your business grow. A Realtor may be the nicest person you know, but if they are unwilling or unable to send referrals your way, it is best to replace them with another name. Consistently market to that group. Once you have your list set up, track the communication you have with each one (see four levels of communication above.) It may take a few weeks to get yourself in the habit of tracking your activities, but I guarantee you will improve the number and quality of interactions you have with Realtors by consistently utilizing this form. Take a few minutes at the beginning or end of the day to track what you have

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lunch or go big with something like a movie event where you rent out a theater and make it an exciting event. Whatever you do, make sure you get the word out; make it fun and follow up after the event.

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accomplished and plan your next steps. Always be looking for ways to stay in touch with your Realtors. Offering information and training is a fabulous way to gain a reputation as an expert. Now is a great time to have First Time Homebuyer seminars as well as investor seminars. It’s also important to be creative and have fun. Remember them on their birthday, drop in with something for holidays and invite them to lunch. One loan officer I know calls her Realtor and sings them happy birthday each year. Another one dresses up for holidays as he drops off a treat. In my conversation with hundreds of Realtors over the years, I have come to the conclusion that they basically want three things from their loan officers.

1. Deliver what you say you can deliver. Be completely honest, even if it isn’t what they want to hear. Having something come up during the process or at closing that should have been taken care of at application is very frustrating for Realtors. I recommend in this environment of change that you set the stage upfront. Let the Realtor and borrowers know that there may be - continued on page 41

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what sales crimes are you committing? You are going to do time ... properly by Tom Ninness

ales crimes are insidious. They sneak up on you, infiltrate the way you do business and quite possibly keep you from closing the sale. They are not illegal, just nonproductive. Examine your sales practices and see if you are committing sales crimes.

Blah, blah, blah, blah, blah……. Ever have someone stop by at your office without an agenda just to shoot the breeze? It can also be an incoming phone call from a vendor that has no substance or purpose. The biggest crime in sales is time wasting activities. If someone imposes these innocuous activities upon your day, stop them in their tracks! Use your voice mail effectively by changing it to reflect your schedule for the day. Let callers know when you will be returning calls. Answer emails only at specific times. Stop being reactive to the onslaught of electronic demands and take back control of your day. If your sales position requires you to regularly stop at offices, then show up prepared and with a purpose in mind. You will be well received if you show up with something pertinent to offer. Sales calls should be to the point and not just a time wasting obligatory stop on a list. Make the sales calls specific, offer something of value and move on. Your clients will appreciate it.

Don’t assume there isn’t any business…. Business can be anywhere. Builders and building projects are often overlooked because it is assumed that there is already an established relationship with a lender. The question, how do you know if the relationship is strong? What if their current lender just made a huge blunder and you happen to walk in the sales office at just the right time. Times have changed and business can come from anywhere. Think outside the box, and expand your horizons. A connection today may not mean immediate business….but tomorrow? You never know…. Keep checking back, provide important information, look at each new contact as a possibility. Never assume any situation is final. Selling not Serving Today’s customers do not like being sold to, they want to be served. If you don’t have a servant’s heart, you better get one and fast. In Tim Sanders’ book, “Love is the Killer App”, Tim suggests that you have better knowledge than the next person you’re competing against. However; if you are not willing to share it with as many people as you can, then you’re not going to do well with today’s consumer. For Real Estate Professionals, Mike Ferry, an “old dog” in the real estate community had a cassette series titled “Buy Now or Get Out of My Car”. This

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demanding attitude is no longer a valid sales technique. The internet has changed how sales are transacted. The world has changed, and the servant will always out sell the seller who is only trying to make a buck.

Accepting No as Never When you get the answer “No”, do you typically stop calling on the client? Remember the admonishment about assumptions? Consider the suspect/prospect as a “C” client and put them on your email distribution list. Send periodic valuable information to them. In one case a Realtor® said that he had a relationship for 20 years and was not looking for another lender to send his business. When asked if the lender could send the Realtor® information that would be beneficial to his business, he agreed. After a year and a half, the lender received a call from the Realtor® and asked if they could go to lunch. The lender has now been doing business with this Realtor® for the past 12 years. No is just no for the time being. Considering the answer “No” as “Never” will never give you the opportunity to prove yourself in obtaining future business from the prospect.

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Lack of Reconnaissance Be proactive…..before making any call or going into an appointment, “Google” and see what you can learn about the individual. The world has become small thanks to the internet. Social and business networking sites like Face Book and Linkedin can offer a lot of information about your prospect. Review who they are linked up with who you may know in common. Additional Crimes Are you reading sales books, watching tele-seminars, webinars and going to sales training seminars? If the answer is yes, great! They can be a wealth of information and offer new innovative ideas. In fact, you should be keeping abreast of new ideas. Are you putting any of the ideas in place? If the answer is no, then the crime is, you are wasting your time. Don’t spend a lot of time and money unless you are willing to implement at least some of what you learn. Ask probing questions that will provide you with the “pain” that the client is going through. Find the challenges that clients are facing and close the gaps in their situation.

Making those connections will help you establish a successful sales call. There is a full library of information at your disposal to improve your position as sales professionals. If your company offers regular training, take advantage of it. However, a company’s offerings are not the end all to sales. It is another tool in the tool box. Utilize the internet for research, read hard copy and internet magazines; join networking groups that can provide lead generation and a consistent flow of useful sales information. Develop a consistent plan of office time management. The more proactive you are, the more successful you will become.

Tom Ninness is Vice President/Regional Production Manager for Cherry Creek Mortgage in Denver, CO. Ninness is also the President of Summit Champions, Inc. and creator of the “The 90 Day Journey to Your Sales Success”, a powerful 90 day action plan for the sales professional. To learn more about The Journey and Summit Champions, go to www. summitchampions.com or contact Tom at information@ summitchampions.com.

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Appraiser sound off

Appraising a new era 2010: An appraisal odyssey by Carol rockman

010 and a new decade is about to begin. Upon being asked to write the first Niche Appraiser column I was delighted to learn that this venue would become a regular part of the magazineâ&#x20AC;&#x2122;s monthly features. Yet I felt challenged with presenting a singular topic of interest that has not been belabored, agonized over, hashed and rehashed ad infinitum. One of the most notorious topics that dominate financial sector discussions has been the Home Valuation Code of Conduct (HVCC) which is now a living legacy rife with ramifications and not expected to be removed from the lending business model. Lenders, investors and government agencies involved in this seismic shift are still trying to figure out the best alternatives to sort through the chaos. Even the US Congress is befuddled. Many appraisers are stunned and disenchanted about the future of their businesses as the industry changes faster than we can assimilate relative future value of the new bumper crop regulations. There is reason for appraisers and users of appraisals to be optimistic about appraisal issues during 2010. In taking the longer view of the appraisal profession and looking back over the last 100 years, one fact becomes apparent. When times are good, appraisers and users of appraisals tend to focus on the business of doing business. They focus on productivity within their respective functions, be it appraising or the various businesses that commonly use appraisals such as mortgage lending, right of way work, litigation, etc.

February 2010

It is when times are bad that the appraisal profession and the users of appraisals take the time to step back and reexamine the appraisal process and issues involving appraiser performance so as to improve the quality and utility of the appraisals being used in the marketplace. It is during the aftermath of each of the economic busts that comprise the long term trends that the appraisal profession has identified and incorporated more stringent measures of professional conduct and practice along with more sophisticated appraisal methodology and applications. Today's appraiser has many more tools and a wider degree of access to relevant data to analyze that data than ever before. Generally speaking, each of those advances has occurred during an economic bust, not during a boom. Looking forward to 2010, we can expect more advances. The appraisal profession has long acknowledged the principle of change as being one of the fundamental influences in the real estate markets, which themselves are dynamic and ever changing. Appraisers will recognize that a market for appraisal services that widens to include more types of "appraisals" for more types of uses, means that there will be more business opportunities for the average appraiser. When times are lean, an openness to the pooling of resources, economics of scope, expanded affiliations and new partnerships are the keynotes that not only engender innovation, they are crucial to survival. Considering that this column will more often than not speak to the collective, I thought to seek some sage perspectives relative to past real estate cycles. While it is true that we will be working under unprecedented

Appraiser sound off economic conditions, struggling with what seems extraordinary to us now, such change will fast become the ordinary. The consensus offered herein is from forward looking veterans I queried. Those who can most definitely see an unlimited future: “We are at a time of tremendous opportunity to participate in what the appraisal industry looks like moving forward. With volatility in our industry CHANGE is the rule of the day and we can be that change or allow others to write the rules for us. If you were your customer what would you want? Are you meeting or exceeding their expectations? Giving them outstanding service? We are a "service" business. Providing outstanding service and well written, researched and communicated reports is imperative to remain relevant. Networked communities of appraisers working toward a common goal can make a difference. Carpie Diem! Let's seize this opportunity to be the change we want to see! Cynthia Sulamo, Certified Residential Appraiser, CA “FHA implemented a law that proscribed the use of licensed appraisers, allowing only certified appraisers to be

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on their roster of approved appraisers. The good news for the experienced appraisers remaining is that they will benefit from that tremendous shrinkage bringing supply back into balance with demand.” Randolph Kinney, Cert. Residential Appraiser, CA “I have a 2010 New Years Eve Resolution for the appraisal profession: “Shake it off and step up”. I often feel like I have fallen down the same hole as Alice in Wonderland. I agree that things are more than a little skewed in the world of the appraiser. However, I continue to say that the little guy (or gal, just a figure of speech) should only worry about what they can change, and not worry about what they cannot change.” David A. Braun, MAI, SRA, TN Ending on a top note, I would like to thank Niche Report for providing Appraisers a medium to contribute their ideas and opinions within the framework of a broader based audience.

Carol Rockman, VP and Co-Founder of www.nvs. coop has been involved in the Real Estate industry since 1978 and Appraising since 1982. National Valuation Service is a company that provides appraisal management services in 50 states; an organizational member of the NCBA in Washington, DC - utilizing the Cooperative business model principles; The Cooperative offers reliable valuation solutions to satisfy the Home Valuation Code of Conduct (HVCC) and FHA compliance to Mortgage Professionals, Lenders, CPA’s, Attorneys, Credit Unions. Carol can be reached at 786-581-9171 or carol. rockman@nvs.coop

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CENTER STAGE WITH Zillow® Mortgage Marketplace The Niche Report talks with Mary Miller, Director, Product Management, Mortgages of Zillow.com brought to you BY THE NICHE REPORT

What is Zillow Mortgage Marketplace? Zillow Mortgage Marketplace is an open and transparent lending marketplace that provides borrowers a hassle-free, anonymous way to receive unlimited and customized mortgage quotes directly from lenders, for free. When lenders (banks, originators, loan officers, brokers) respond with customized quotes, borrowers compare the quotes, review lender ratings and profiles, and then decide whom they want to contact and when. Since borrowers are anonymous to lenders, they are not inundated with unwanted phone calls and email messages. Why did you expand Zillow to go into the mortgage space? We launched Zillow.com® in February 2006 with a simple premise: empower consumers with information so they can make more informed real estate decisions. On Zillow, homeowners, buyers, sellers, real estate agents and mortgage professionals find and share vital information about homes, such as Zestimate® home values and data on millions of U.S. homes. Zillow has since become one of the most-visited U.S. real estate Web sites, with nearly 9 million unique visitors each month. Zillow's goal is to help people become smarter about real estate in every stage of the home ownership process-- buying, selling, home improvement and financing. Zillow Mortgage Marketplace is a logical extension of Zillow, as financing a home is one of the largest

February 2010

investments most people will make in a lifetime. Zillow Mortgage Marketplace helps borrowers through this complex process and empowers them to find the right loan for their unique situation, while also providing an extremely easy way for lending professionals to connect with prospective clients online. What are the benefits to borrowers? Zillow Mortgage Marketplace works by empowering consumers with free data and an open and transparent marketplace where they can efficiently shop for and compare loan quotes on an apples-to-apples basis. We make the shopping experience hassle-free for borrowers, primarily by keeping their identity hidden until they're good and ready to contact a lender. We also provide features like help articles, blog posts, mortgage calculators, real-time mortgage rates, sort and filter tools, True Cost calculations, and loan detail graphs to help borrowers make decisions. Why would lenders want to participate in Zillow Mortgage Marketplace? For lenders, Zillow Mortgage Marketplace offers many benefits. Lenders can respond to an unlimited number of loan requests from borrowers, and currently, Zillow receives approximately 50,000 loan requests each month. To help focus their efforts, lenders can search for requests with specific criteria—such as loan type, loan amount, LTV, credit rating, etc.—and then receive email alerts when new loan requests are submitted that match their criteria. Once borrowers review lender quotes, profiles, and

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reviews, they decide which lenders they want to contact and when. Since borrowers contact lenders and not vice-versa, these contacts close at an extremely high rate (more than 10%) because the borrowers are ready to transact. This saves lenders valuable time from chasing weak leads. Borrowers who contact lenders on Zillow Mortgage Marketplace are not traditional cold mortgage leads; instead, they are very warm Customer-Initiated Contacts. What’s Zillow’s revenue model? Zillow’s overall revenue model is advertising. We give away lots of tools, data and information for free, because we feel that sharing information on homes, buying, selling, home improvement, and financing will help everyone make smarter real estate decisions. Because we do all of this, we get millions of people visiting our site each month who want this information. This provides lots of opportunities for advertisers who want to get their message in front of these people, too. So they buy ads, choosing from a myriad of different advertising opportunities. Within Zillow Mortgage Marketplace, lenders pay for targeted advertising via the Customer-Initiated Contacts they receive. Lenders submit an unlimited number of loan quotes for free, and then they pay a fee when borrowers contact them about their quotes. The price for CustomerInitiated Contacts is shown as part of the loan request, so lenders use this information to decide which requests to quote, and they can set a maximum price to pay per contact. Compare this to traditional lead generation, where lenders are required to pay upfront for a potential borrower’s contact information, then they have to invest a lot of time and effort in calling on those cold leads. Often, the borrower doesn’t even realize that his name has been sold multiple times, and therefore isn’t receptive to the multitude of phone calls and emails he receives from lenders. On Zillow, borrowers who contact lenders on Zillow are much more ready to transact, since they have already compared quotes, profiles and ratings and have decided to proactively reach out to a selected lender. This results in a conversion rate that’s nine times higher than the industry average. What controls have you put in place to make sure bait and switch doesn’t happen? Before being permitted to submit quotes through

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Zillow Mortgage Marketplace, every participating lender must have their professional status confirmed, create a public profile and agree to be rated. Lenders are also required to comply with the Zillow Mortgage Marketplace Code of Conduct which sets expectations for accurate and honest loan quotes. Zillow Mortgage Marketplace is built on a reputation system, and this helps enforce our Code of Conduct. If a lender offers rates that he then can’t meet, the Zillow community will provide that feedback through their ratings of the lender to deter others from contacting that individual. In addition, mortgage quotes on Zillow are visible to all lenders and lenders are encouraged to flag other lenders quotes if they suspect impossible loan scenarios. Zillow moderators follow up with lenders whose quotes are flagged to substantiate quote accuracy. Lenders found to violate the ZMM Code of Conduct may have their confirmed lender status suspended or permanently revoked. Has it been successful? Zillow Mortgage Marketplace is working: borrowers - continued on page 42

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MBS WARROOM

MBSWARROOM.COM MANAGING PERCEPTIONS OF REALITY by Adam Quinones

hen all confidence was lost in the banking system during the fall of 2008, the marketplace responded by baking a huge "WORST CASE SCENARIO" discount into asset valuations . Stocks sold and sold and sold as the "WORSE CASE SCENARIO" implied the global economy was doomed to be sucked into a deflationary spiral. Panic was the prime source of motivation in the decision making process. However, historic "quantitative easing" actions taken by the Federal Reserve served to re-establish CONFIDENCE in the banking system and slow the pace of global economic contraction. Although a systematic collapse had already priced into asset valuations, the Fed's liquidity measures and the rapid responses of the Treasury Department soon facilitated the restoration of status quo in the financial markets. After five months of dramatic losses, stocks rallied from March to June 2009. In the process, job losses continued to moderate and the housing market was "rebounding" from record low levels of activity. At that time, the media was spending a great deal of energy attempting to relate asset price fluctuations to fundamental headline news. Readers often stated that LOGIC appeared to be missing from post-data/post-event value adjustments (price reactions). The media tried it's best to rationalize financial market behavior with an optimistic perception of economic reality.

February 2010

We reminded all that economic outlooks were muddled with uncertainty. Forecasting models had too many variables. Assumptions were based on assumptions. Half the market said recovery, the other half said stagnate stabilization at best (we were in that camp). No accurate outlook could be made regarding the "road ahead". It was very BULL vs. BEAR. It was a trader's world , we were just living in it. Although mixed outlooks and uncertainties were abundant, one thing was clear: the bond market did not plan on waiting around to find out what would play out down the road. The 10yr Treasury note spiked up to 4.00%, the 2s/10s yield curve set new steepness records... and mortgage rates ticked towards the mid-5.00% range. In just a few weeks. Rates traders were quick to err on the side of caution. "Better than expected" was becoming a trend and much respect was being paid to the threat of inflation. The market actually priced in a possible Fed rate hike before the end of 2009! This was the first hint we got about how the market might react to Federal Reserve's eventual exit from the marketplace. The market's initial "SELL NOW, ASK QUESTIONS LATER" reaction to the threat of inflation and the notion of a Fed rate hike provided a historical standard with which we can now compare current market. Plain and Simple: upon first inspection, the bond

MBS WARROOM

trading conditions. 45% chance in short run. 25% in Q1 2010.

market did not react well (at all) to the idea of inflation or FOMC interest rate hike. In December, a very similar set of events unfolded in the marketplace. Economic "better than expecteds" were in style, inflation was back on the radar of market watchers, and the debate over a Fed rate hike was a frequently read headline. When I wrote this on December 28, 2009, stocks were closing out the year at 2009 index highs, the 10yr Treasury note was trading at 3.85% and the most aggressive lender rate sheet was just barely paying rebate for 5.00 loan paper. After re-testing record low mortgage rate levels in late November, rates backed up considerably in December. Just like they did in July...when a very similar set of events unfolded in the marketplace. Based on the behavior exhibited by the bond market in July 2009 and December 2009, the forecast for mortgage rates in early 2010 was not pretty. Below is our outlook for rates as written on December 23, 2009.

3. A DOUBLE DIP FLIGHT TO SAFETY. This is very unlikely early on in 2010, so don't get your hopes up for an immediate recovery rally that sets new all time lows. In 2010, it is possible that rates could completely recover all lost progress and move back towards record lows, but only if the economy takes a major turn for the worse. This is not something we expect to see early in 2010. Over the long haul, most economic activity is just now stabilizing, right above record low levels. <1% chance in short run. <1% chance in Q1 2010. *read "% chance in Q1 2010" as the likelihood of the scenario being the dominate rates market theme of Q1 2010. As I mentioned earlier, I am writing this on December 28, 2009..so I have no idea if the above outlook was accurate! While I do hope our forecast was misguided and mortgage rates have already returned to the supportive confines of "the range"...I also hope we were right about

1. HOLD STEADY OR MOVE HIGHER: Rates could fall briefly only to rebound back to current levels or even higher. Either way, mortgage rates would bounce around a new, higher costing range. This is a favorite for early 2010. After several months of choppy economic growth, the market is beginning to REALLY believe "the worst really has been avoided". If economic activity continues to show signs of improvement (even if there are scattered setbacks), the bond market will take the "better than expected" side of the trade and mortgage rates would creep into the 5's and maybe even test the 5.50 level (at best). This is if the OPTIMISTIC ECONOMIST perception grabs hold of media headlines and news tickers. This category also includes an outlook with no short term price correction. 55% chance in short run. 75% in Q1 2010*.

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2. CORRECTION BACK INTO RECENT RANGE: Rates could move back inside the confines of the range we enjoyed from August to December, and stay there (4.50 and 5.00 Mortgage at best). If this occurs, it will likely be a function of mixed Flyers e m economic releases and a general unstable, highly uncertain o H n Style ranea editer economic outlook. Very similar to what we experienced www.EZMortgageFlyers.com ew M N l fu Beauti from July to December. The Fed also plays a HUGE role in Uncle Sam has $$$’s for you! this theory. Their bully pulpit rhetoric must continue to fight off inflation hawks with strong dovish verbiage (dovish = low rates), or number #1 will be even more likely. If you are OSIIs now the rig looking to close in January, this outlook is viable, especially ht if the recent rates sell off was over dramatized by very light 866.674.1999 time to refin Jim Jenkins, Real Estate Agent\Broker The Jenkins Team 888.123.4567 www.JenkinsTeam.com Cnv Fxd

Finance

Fxd 100%

Notes

Cnv Fxd

5/6 ARM

Cnv Fxd Fxd Pmt

Cnv Fxd

1%ByDn

Cnv Fxd Fxd Pmt

10%

First Loan

$400,000

$320,000

$388,000

$360,000

$320,000

Term

30 Years

6.250%

5.625%

6.000%

5.250%

6.000%

% Down

ting ike Set ark L vate P rge Pri

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APR

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5.819%

6.773%

6.597%

$2,463

$1,842

$2,326

$1,988

$1,919

N/A

$80,000

N/A

$40,000

30 Years

N/A

30 Years

10.500%

N/A

10.750%

N/A

$731

N/A

$373

$12,000

$40,000

$11,763

$13,041

$11,648

$10,838

$14,238

$11,763

$25,041

$51,648

$50,838

$3,004

$2,814

$2,855

$2,323

$2,522

Seller/Lender Pays Total $ Required

N/A N/A

$14,238

Down Payment

Closing Cost Est

6.175%

Total Payment

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This financing is designed to assist you in selecting the loan program that most closely suits your budget.

Financing is shown for comparison only. This is not an offer of credit or commitment to lend. Loans are subject to buyer/property qualification. Rates/fees are subject to change without notice. Total Cash Required may include prepaids/impounds, not cash reserves which may be required for some conventional loans. Total Payment may include taxes, insurance & mortgage insurance for loans when required, but does not include HOA.

APR shown is for 1st loans only. 2nd loans do not include prepaid finance charges. A full disclosure of your closing costs, including the APR, will be provided when you select a financing program and negotiate the purchase of a home.

Bob Smith, Senior Mortgage Consultant

Office: 888.555.1212 Cell: 800.123.4567 Email: bob@prospectmtg.com t 1234 Main Street, Hometown, 92869 ~ Licensed Mortgage Broker enUSA tate Ag Real Es 2322322 Whether you are a �irst time or step up ll Jones, Mary 23.4567 Cerealty.com homebuyer, Uncle Sam has a tax credit that 800.1 friendly @ can give you a bag of money. mary

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•

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rates. Me being right or wrong about higher or lower rates is not the point here though. There is a broader message embedded that we all need to be reminded of now and then... Our outlook for early 2010 was for higher mortgage rates because we know the bond market prices in an economic recovery before an economic recovery is actually confirmed (ever hear someone say the bond market is forward looking indicator of economic activity?). While several events could have occurred that shifted sentiment and proved us wrong, the same story will still have been the source of directionality: PERCEPTIONS OF REALITY. THE CONSUMER'S PERCEPTION OF ECONOMIC CONDITIONS THE FED'S PERCEPTION OF CONSUMER STABILITY THE BOND MARKET'S PERCEPTION OF FED MONETARY POLICY Even if our timing was off, this story will not go away. Eventually the Fed will have to exit from the banking system. Eventually the Fed will have to upgrade the language of their monetary policy statement. Take note of the bond market's historic reaction to these events. Recall that rates rose rapidly when Fed rate hikes were "thought to be" coming sooner than previously forecasted. If we were wrong, we will run up against this problem again in the future.

Adam Quinones is Managing Editor of Mortgage News Daily and co-founder of the MBS War Room. Matt Graham is the creator of the MBS War Room, a first of its kind service bringing institutional quality market data and analysis to mortgage market professionals.

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RULES & REGULATION HEADLINES

Rules & Regulation Headlines By now you know that Fannie & Freddie kept the loan limits the same for 2010 — but if you offer FHA loans, the loan limits can be different in EACH county in your state! Use the link provided! If you are strictly a Fannie/Freddie lender, this is the info you need to know when meeting with clients!

Freddie Incorporates These Changes – Bulletin 2009-27 – Whew! You’ll want to read this interpretation right now! Different effective dates & some of the major highlights! • • • • •

Clarified buying another home without selling current home How rental income will be counted—or not counted Timing of Verbal VOE extended Self-Employed Taking Cash out of business clarified and everyone on the planet must sign 4506T

This bulletin info is very detailed, so don’t trip up. Rental Income amendments are useful – you do not have to argue for the use of income on new rental properties anymore, so long as your borrower is not a new landlord as well. Verbal VOE’s – at least they gave you a little more time by moving to business days, but the guidance on the written VOE is not so helpful – a written only trumps the new 10 business day rule if verbal is not available…be prepared to do both… For your self-employed’s – instead of getting a letter from the client’s accountant, you may want to become familiar with the “Cash-Flow Analysis” process. Online Handbook “Interpreting Your Client’s Tax Returns: How to Become THE expert in a Full-Doc World” (www.MortgageCurrentcy.com Products Link) Freddie Updates LP You will start getting real, meaningful messages from LP… imagine the possibilities. Lots of changes…all coming to a Loan Prospector near you… Be aware of the Cash-Out change coming – LP is going to start alerting you to this early – but you had better not miss the settlement deadline of January 31, 2010! November 22 Release -- Freddie continues to tweak their

merged credit report options providing a new technical affiliate name field. Currently the only Credit Report Company supporting the enhancement is Equifax Mortgage Solutions (EMS). Depending upon how you request merged credit in LP, you may or may not be able to take advantage of the new system – Your LOS vendor, Wholesale lenders, etc…all have to be able to support the enhancement. All LOS vendor systems must support this field by year-end. December 13 Release – It is finally here…with an early kicker. On December 13th, new and updated messages will finally be provided supporting Bulletin 2009-18 – employment, income, and assets. These changes are effective for loan applications dated on or after December 14, 2009, and settlement dates on or after April 1, 2010. Freddie is also updating LP to support Bulletins 2009-22 and 2009-24 with feedback messages regarding credit and property eligibility.

FHA Gives Relief from Second Appraisal Requirements – ML 2009-48 Great news! Not often we get told to lessen documentation requirements. This second appraisal was digging into your profits and processing time….so good riddance! But wait, you are required to order a 2nd appraisal if home is being resold with 91 to 180 days of purchase by the seller.

Home Equity Conversion Mortgage Program: Subordinate Liens – ML 2009-49 Clarifies ML 2006-20 We had to shake our heads at the fact that 2006-20 was written as “clarification” guidance. Now we have a new ML TheNicheReport.com

RULES & REGULATION HEADLINES

that “clarifies” the “clarification”. Outside of the exceptions listed, you can’t create a NEW lien during the process of obtaining a HECM.

FHA Maximum Loan Limits for 2010 – ML 2009-50– Effective January 1, 2010 While reviewing this Mortgagee Letter, all we could think was “holy overlapping legislation!” Many areas will have limits that are between the declared “floor and ceiling” which is why you need to go to the link and check your area limits. Here’s the short version: • The “ceiling” went up for high cost areas. • Go to https://entp.hud.gov/idapp/html/hicostlook.cfm and print out loan limits for the states/counties you do business in for quick reference.

Compliance: Federal Reserve issues FAQ for Short-Term Balloon Loans and Reg Z HPML Repayment Ability Requirements – Effective Oct 1, 2009

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This may not be a hot product at this point in time, but 5 yr Balloon loans have been popular in the past and likely will be again. This interpretation really complicates things for your standard LTV loans – 75-90% percent LTV’s. Keep this info in the back of your head – it will come up in the future. WOW – this is not encouraging for 5 yr Balloons that cross the HPML threshold. Talk about double-speak! The Fed tells you that you are not required to predict the future, but just before that, they tell you that you had better predict the future. The only way you will get a Balloon loan with less than 7 yrs done is if your APR is low enough to stay under the HPML threshold or your borrower has tons of equity and assets.

FHA Adopts Appraisal Update and/or Completion Report (Fannie Mae Form 1004D / Freddie Mac Form 442) – Effective January 1, 2010 – ML 2009-51 Folks at HUD are sleeping better at night knowing that once again they’ve “righted a potential wrong” and protected the consumer from harm. Well dream on people. Do not plan on ordering Appraisal Updates on your expired FHA appraisals until you know if your investors will accept them. Better to prepare your borrower for the cost of a second appraisal and disclose the higher cost up-front.

USDA Announces 2 Pools of Funds for Refi’s The USDA RD National office recently announced additional funding availability for RD Section 502 Guaranteed loan program “refinance” transactions under the American Recovery and Reinvestment Act of 2009 (ARRA). While USDA currently allows the refinancing of existing agency loans, both the 502 Guarantee and Direct programs, this additional funding availability set additional, more restrictive, requirements beyond that of current refinance guidelines. This Notice of Funding Availability (NOFA) effectively created two pools of funds in which RD refinance transactions can be processed and with the primary difference being that the ARRA pool of funds has more restrictive use requirements than the pool of regular annual funds. Provided monthly by www.MortgageCurrentcy.com - Interpreting the Rules and Regulation Changes for loan officers, processors, underwriters and owners/managers. Mortgage Talking Points ™, charts and checklists included.

TIP OF THE MONTH

TIP OF THE MONTH Executive Summary BY STEWART MEDNICK

very good business plan will fund a business. Why else would you have a business plan than to raise money for a business? What is the function of a business plan? A business plan states the nature of the business, the marketing strategy, the financing necessary to bring a product or service to market, and the exit strategy whether the business is successful or a bust. An investor will read the first two pages, and either give the business a thumbs up or a thumbs down. The crux of a business plan is this introductory first two pages called an Executive Summary. A good Executive Summary will give a very concise, eloquent overview of the business and the pay out. It will describe the target market for the product or service, the size of the market, the strategy to sell the market and how the credentials of the business owner are more than sufficient to execute the plan with Special Forces-likeprecision and gusto. So when was the last time you wrote an Executive Summary on your business? The purpose of writing an Executive Summary is many. Here are a few key reasons: defines your core competencies, focuses your market, develops your marketing strategy, and establishes a budget and gross revenue model. In the spirit of my previous column, “Me LLP,” I thought this may be not only a logical follow-up column, but a prudent one for today’s economic and business environment. Assets are limited. Clients are limited. Revenue is limited. Resources are

limited. The only thing that seems to NOT be limited is your ability to flourish when your competition is floundering. So let me provide a few words of wisdom on how to structure an executive summary so you can use this as your guideline and foundation to create the most powerful business you have ever developed; and make it so for 2010. Since the Executive Summary is perhaps the only part of a business plan that investors may read, it may be the only exposure a potential client may have to your business and the reason the client should work with you. Remember the elevator speech column (October 2008 issue)? The Executive Summary can use the core elements established in the elevator speech but in more developed business acumen. Writing this will provide a focused strategy and delivery so when speaking to a potential client, you will consistently recite the same information to each. First, an executive summary will state what your business provides; a product or a service. Be succinct in three sentences or less. For example: I am an editor for a nationally distributed magazine that focuses on the mortgage finance industry. I write a column that provides tips on how to empower one’s self in the areas of marketing, interpersonal development, and sales.

Immediately to follow, you state the need for your product or service; ‘where is the pain?’ Again an example: All too often, a new mortgage hire will be told to make sales and close loans, but will not have formal training. Perhaps a seasoned mortgage professional is in need of fresh ideas and

TheNicheReport.com

TIP OF THE MONTH

coaching to propel business a notch higher. My column will provide useful information that can be instantly implemented, and will dovetail with previous columns and build for future columns. This way, mortgage professional, regardless of experience, can all benefit from the information I provide.

These two initial elements of the Executive Summary needs to be focused and refined. Spend time to ensure it is how you want your business to be presented. The next section should be the target market description. This section will provide a specific market. Who is your target? Are you focusing to build a network and relationships with partners that can fill the pipeline? Who comprises the network? Is your focus first time home buyers? Or is it second mortgages? Spend a paragraph developing the market. Finally, you want to script a short biography of yourself and emphasize why you are the best at what you do. Are you experienced? Have you been awarded any commendations or recognitions for your performance? Is your volume or quality of service above and beyond the call of duty? Find the strengths in your business and build from those.

This is a basic Executive Summary that can be expanded and modified to your needs. Even if you do nothing else, just writing it may help you understand and hone your business a little better. Perhaps it can assist in developing copy for marketing material or for your website. When it is finished, email me a copy and I will gladly provide a second opinion. Remember that if your business is not headed in the direction you want it to go, you will get there. Use this as a guide to point your business in the direction you do want to go.

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

Attend Leonard Rosen’s Pitbull Mortgage School Now accepting enrollment for our Hard Money Seminar Monte Carlo Hotel & Casino - Las Vegas February 25th Reserve your seat today. Always sells out!

Are you ready to prosper in the hard money lending industry? With the recent credit crunch crises, conventional funding has become more difficult for borrowers to obtain financing. The real estate industry has always been dependent on the ability of lenders to source loans. We have several distinct messages that we communicate at our live event. Mortgage brokers who want to broker hard money, are introduced to direct hard money lenders from all areas of the country. There are many mortgage brokers who have an interest in becoming a hard money lender. We teach you how to be-

come a direct hard money lender and also teach you how to create an investment mortgage pool. Marketing hard money for commercial and residential properties is a key element to your success. Quite frankly, nobody knows how to market hard money better than us. We show you a proven, time tested business model. There is nothing sold at the event. Whether you are a broker who wants to originate hard money or have a desire to become a hard money lender, I can assure you that you will be shocked at the high level of content.

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- continued from page 22

more forms to sign or you may have to ask for additional documentation, but you have done everything to the best of your ability at that time. Then work hard to know your files along with program guidelines so problems are taken care of as quickly as possible.

2. Be available. Many realtors feel that loan officers beg for business, but then once they have it, they feel no need to stay in touch and or return phone calls. I would over-deliver on this and have regular emails and phone calls set up in your schedule. Even if it is to just say “everything looks great and is processing as needed.” This will give them the security that you are still working on the file. They will also feel more confident in referring future business your way. 3. Be positive and upbeat. Selling real estate is a tough business and Realtors want to work with someone that helps lift them up. In all of your interactions find something positive to say. Steer clear of negative comments about clients, other Realtors and your staff. Negative comments do not improve your reputation as a professional and often brings you down in their eyes. If you are consistently positive and upbeat, you will find that Realtors will search you out for your help with their clients. The wonderful thing about this industry is that the potential to succeed is limitless. I realize it doesn’t feel that way when your phone is not ringing, your pipeline is dry and you are not feeling motivated. If you find yourself in this situation, I recommend that you take a step back and make a list of all the reasons you are a loan originator. Then write down your production and income goals for 2010 if you have not already. The most critical step is next, taking action. Your phone won’t start ringing and your pipeline will not magically fill unless you start doing something different. Decide now what marketing tasks you will work on and be willing to stretch yourself. To succeed you must build your sphere of influence, market to your database and reach out to a core group of Realtors. And if during all of this, you can show that you care and are passionate about what you do, I guarantee to you that the loans will follow. Bliss Sawyer is a nationally recognized coach, trainer and speaker. Bliss specializes in relationship-based marketing strategies for mortgage professionals. She can be reached at 806-577-3937 or by email: Bliss@BlissSawyer.com. Visit her website at www.BlissSawyer.com.

- continued from page 32

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are finding the right loan and lender for them, and lenders are generating new business. When borrowers contact lenders, they have already reviewed their quotes, profiles, and ratings. This results in very high quality new business prospects, with contact-to-close rates of more than 10%. These high success metrics are particularly noteworthy amidst a mortgage environment that has extremely tightened lending standards, making it very difficult for borrowers to get financing. What makes Zillow Mortgage Marketplace successful? People don’t want to be leads. They want to be people, not leads. The internet has changed the way people consume information, the way they make decisions, and most importantly, the way they conduct important transactions. Companies like BlueNile, Expedia, WebMD, Schwab and of course Google have trained us to expect to be able to do all of our research in privacy and solitude, to remain anonymous until we're ready to transact. Wouldn’t it be awful if you searched for a hotel room on Expedia, and then all of the hotel reservationists called you? Or if you researched new cameras on Amazon.com, and you got calls from salespeople at Canon, Nikon and Panasonic? We're trained now to expect to be able to access information on our terms, on our own timeline. Traditional leads are dead. The old model, where Web sites provide as little information as possible in order to entice consumers to fill out a form so they can then sell the personal information to the highest bidder… those days are over. The Customer-Initiated Contact model still leaves plenty of room for professionals to communicate with consumers, but only when the consumer is good and ready. This approach puts the consumer in control, and ultimately that’s better for the professionals in the equation also. First, it means that the professionals only have to talk to the consumers who preselect them, on their own terms. This saves professionals time and energy, since they don’t have to chase down cold leads. Second, consumers love being in control, and as a result, they use Zillow Mortgage Marketplace to do their mortgage shopping. The success of Zillow Mortgage Marketplace is good for lenders, since it ensures they are investing their time and money with a sustainable business.

NICHE REPORTS

Prime & FHA Premium Listings

American Pacific Mortgage 866-625-9352

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Mission Hills Mortgage Bankers 925-849-1806

NetMore America, Inc. 877-490-3140

Presidents First Mortgage Bankers 703-754-9643

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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.

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NICHE REPORTS

HARD MONEY & NON-PRIME Premium Listings

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ACC Mortgage, Inc.

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Associates Finance Bank

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Fairview Commercial Lending 866-634-1270

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

First Mount Vernon 866-908-FMV1 (3681)

GreenLake Real Estate Fund, LLC 310-462-4637

Gregory Funding LLC 888-324-3578

Manaseh, Epharim & Associates

B & C LENDING IS BACK. If your client has equity, we have a loan. Loan amounts 100K to 2MM. We are the final decision makers, all decisions made at our location. AF BANKERS 877-500-5530 • Closings in as Little as 35 Days • Up to 75% Loan-to-Value Ratio • Commercial Property Acquisitions & Refinancing • Development & Construction • Hard Money 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. 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 Private direct commercial loans in CA and NV. All property types except raw land. Our latest fund was raised specifically for loans in this tough economy. We're eager to lend, so please call today! Private money portfolio lender specializing in funding loans traditional lenders cannot. No credit score requirement. No pre-payment penalty. Up to 70% LTV. Foreclosure ok. Bankruptcy ok. Lending territory: AZ, CA, CO, ID, NV, OR

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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.

February 2010

NICHE REPORTS

COMMERCIAL Premium Listings

NEW

Associates Finance Bank 877-500-5530

Fairview Commercial Lending 866-634-1270

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

GreenLake Real Estate Fund, LLC 310-462-4637

Gregory Funding LLC 888-324-3578

Manaseh, Epharim & Associates 770-840-0112

MMG Capital LLC

Up to 75% Loan-to-Value Ratio • Commercial Property Acquisitions & Refinancing • Development & Construction • Hard Money 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. Private direct commercial loans in CA and NV. All property types except raw land. Our latest fund was raised specifically for loans in this tough economy. We're eager to lend, so please call today! 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 Acquisition, Refi’s, and Development Commercial Loans. Your source for international and domestic funding.

Asset-based Hard Money Loans; Nationwide Lender

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

TheNicheReport.com

LENDER & RESOURCE DIRECTORY

All Credit Considered Mortgage B&C LENDING IS BACK www.weapproveloans.com Contact: National Sales Manager Phone: 240-314-0399 X 19 Email: newloans@accmortgage.com

ATTENTION LENDERS!! Buyers of Distressed Debt Email: NicheBuyers@gmail.com

Direct Group Marketing Small-cell mailings to full-scale, multichannel campaigns reaching millions of consumers www.directgroup.net Phone: 856.241.9400

Best Rate Referrals Specializes in direct marketing services www.bestratereferrals.com Phone: 800-811-1402 a la mode, inc. Land loans with powerful websites and marketing. Then close fast with eSignatures and workflow tools. www.alamode.com Calyx Software Affordable software that streamlines and optimizes all phases of the loan processâ&#x20AC;&#x201D;from loan marketing through closing. www.calyxsoftware.com Phone: 877-862-2599 email: point72@calyxsoftware.com American Pacific Mortgage Corporation One of the largest independent retail banking and branching companies in the country www.apmortgage.com Contact: Melissa Arntzen Phone: (866) 625-9352 Email: info@apmortgage.com

Applied Business Software Origination and Servicing software for hard money lenders. www.TheMortgageOffice.com Phone: 800-833-3343 Email: leadsmanagement@absnetwork.com

CMG MORTGAGE INC One of the nation's leading wholesale mortgage banks with offices in San Ramon CA and Phoenix AZ www.cmgbanking.com Contact: John Cathro / Mike Lee Phone: 702-290-9210 / 925-708-2236 jcathro@cmgmortgage.com / mlee@cmgmortgage.com

CreditCRM THE ONLY full credit repair business in a box www.creditcrm.com Phone: 877-256-8162

Associates Finance Bank Private investors and lenders www.afinancebank.com Contact: Mr. Enrique Gonzalez Phone: 305-500-5530 Email: afbankers@aol.com

February 2010

Debt Settlement USA 888-258-5138

DocMagic The largest dedicated loan document production company in the country, delivers a fusion of solutions guaranteed to meet today's complex loan document challenges www.docmagic.com Phone: 800-649-1362

ENTITLE DIRECT Savings up to 35% or more on title insurance in 30 states www.EntitleDirect.com/mortgage Phone: 877-936-8485 or 877-9ENTITLE SpecialistCenter@EntitleDirect.com

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

Fairview Commercial Lending Privately funded national hard money (private money) commercial lender www.FairviewLending.com Phone: 866-634-1270 Fax: 404-634-0319

LENDER & RESOURCE DIRECTORY

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

First Mount Vernon I.L.A. Privately-owned, equity-based lender which specializes in lending to borrowers who require fast closings www.FMV1.com Phone: 703-823-6800 Fax: 703-997-2499

Flagstar Wholesale Lending One of the largest wholesale and correspondent mortgage lenders in the U.S. www.wholesale.flagstar.com 866.945.9872 wlsc@flagstar.com

Freedom Mortgage Branch Opportunities www.fmbranch.com Phone: 800.220.9498 Email: info@fmbranch.com

Geraci Law Firm Leading expert in the creation of mortgage pools and fractional loan securities offerings www.geracilawfirm.com (949) 379-2600

gotomeeting.com Demonstrate, present, collaborate – right from your PC or Mac®. Try it free for 30 days promo code: AK16

GreenLake Real Estate Fund Private Commercial Lender in CA & NV Contact: Kamau Coleman Phone: 310-462-4637 Email: kcoleman@greenlakefund.com

Gregory Funding LLC Direct money portfolio lender for AZ, CA, CO, ID, NV, OR www.gregoryfunding.com Phone: 888.324.3578 Email: info@gregoryfunding.com

Guaranteed Home Mortgage Company, Inc. Established and well-funded Mortgage Banker since 1992 www.ghmc.com and www.joinguaranteed.com Contact: Kelley Berkheiser or Louis Tesoriero Phone: (888) 329-GHMC Email: ltesoriero@ghmc.com

Icon Residential One of the nation’s leading lenders to the broker industry www.iconwholesale.com

Just Mortgage, Inc. Agency/FHA lender, lending in 26 states www.justmtg.com Contact: Dawn Piazza Phone: 571-271-6120 Email: dawn.piazza@justmtg.com

Leads360 We don't sell leads. We provide lead management software and services that ensure our clients achieve unparalleled return on investment from their leads. www.leads360.com Contact: Avi Fischer Phone: 888-856-0534 Email: afischer@leads360.com

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

Loansifter Proprietary online search engine designed to help originators make the right match between loan programs and those who need them www.Loansifter.com Phone: 920-687-1222 Email: Sales@loansifter.com

Manaseh, Epharim & Associates Domestic and international financier, offer up to 100% financing to qualified investors/ borrowers www.meandassociates.com Contact: R.D. Walker Email: info@meandassociates.com Phone: 770-840-0112

TheNicheReport.com

LENDER & RESOURCE DIRECTORY

Mission Hills Mortgage Same name since 1969. Stable, family owned, well capitalized residential retail lender. Division of Gateway Business Bank. Select retail branch opportunities available on the West Coast www.mhmb.com Phone: 925-849-1806 Contact: John Connelly Email: JConnelly@mhmb.com

MMG Capital LLC Asset-based Hard Money Lender; Nationwide www.mmgcap.com Contact: Chris Gleason Phone: 310.295.1121 (ext. 301) Email: chris.gleason@mmgcap.com

The Mortgage Lender Implode-O-Meter Tracking the Housing Finance Breakdown... the WHOLE truth www.ml-implode.com Contact: Randall Marquis Phone: 949-722-7005 Email: randall@ml-implode.com

Mortgage Insurance Agency, Ltd. State Licensed Surety Bonds, Errors & Omissions, and Fidelity Bond coverages for Mortgage Bankers and Mortgage Brokers nationally www.mtgins.com Contact: David Jackson, President Phone: (866) 355-9944 Email: info@mtgins.com

National Federation of Mortgage Professionals Professional Association Name: Valerie Saunders Phone: 800-289-9983 Email address: info@yournfmp.org

National Valuation Service, Inc Comprised of thousands of fully vetted Independent Business Owners who as Appraisers, provide valuation and consulting services in 50 states Phone: 786-581-9171 Email: info@nvs.coop

February 2010

Nationwide Appraisal Network We understand that customer service and flexibility is crucial in building your business and we operate accordingly with every appraisal request www.nationwide-appraisal.com Phone: 888.760.8899

Presidents First Mortgage FHA specialists www.presidentsfirst.com Contact: Tim Dooley Phone: 703-754-9643 Email: tim@teamdooley.com

Nationwide Capital Group Corp. Experience and expertise needed to provide you with the commercial real estate loan that best fits your organizations commercial capital needs www.nat-cc.com Phone: 561-347-2228

RateLink Providing mortgage professionals with timely and accurate data as a means to a competitive advantage www.ratelink.com Phone: 800-938-5193

NetMore America, Inc. Next Gen Mortgage Banker www.netmoreamerica.com Contact: Karstan Lovorn Phone: 877-490-3140 Email: contactus@netmoreamerica.com

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

OSI Express Not just mortgage flyers and open house flyers, We are a powerful financing analysis tool for refinance and purchase, greatly helping loan originators www.OSIExpress.com and www.EZMortgageFlyers.com Contact: OSI Customer Care Phone: 866.674.1999 Email: customercare@osiexpress.com

Residential Home Funding Corp. Banker Branch Opportunities www.RHFBranch.com Phone: 866-319-4442 Email: fkuri@rhfunding.com

Stearns Lending A prime wholesale lender committed to helping you achieve your goals by delivering lending services to you and your borrowers www.stearns.com Contact: Debbie Davis Email: ddavis@stearns.com Phone: 714-513-7777

Tranzact Information Services LLC Simplifying and automating marketing information services www.tranzactis.com Contact: Adria Melito Phone: (888) 775-6566 x237

BRINGING UP THE REAR - continued from page 50

were the citizens of this country? We threw a hissy-fit earlier in the year over AIG giving out something like $160 million in bonuses, which is only a little over one percent of $91 billion… and yet I barely heard a peep over the $91 billion figure. In Barack Obama’s speech introducing Making Home Affrodable, he talked about judges being able to modify mortgages in bankruptcy court, if banks failed to do so, but when it came time to support bankruptcy reform... twice… Barack Obama was nowhere to be found. And we passed a credit card reform bill that put a limit on the fees charged by credit card companies, but we neglected to put a cap on interest rates so we ended up with First Premier Bank offering a card with a 79.9% interest rate. Don’t worry though because it only applies to poor people with bad credit, so I guess it’s not that big a deal. There is no real estate market, so why is everybody pretending that there is? Giving people the down payment, and making it easy to get loans that will all soon be underwater does not a real estate market make. And commercial property? Down by 40% and pretty much a complete disaster. Of course, Geithner doesn’t require losses on commercial property to be recognized by banks, so I guess problem solved on that front. Morgan Stanley even walked away from at least one of the office buildings that it over-bought a couple of years back. Maybe they were trying to get a loan modification from Goldman Sachs and when it became too frustrating to have Goldman continually lose their file and keep them on hold for hours on end, they just decided to walk away… I mean, “strategically default”. Guys… we have problems, big problems… problems that President Obama hasn’t even commented on publicly since last February! Not even a comment, Mr. President? What are you thinking? And please don’t say “health care reform,’ because I wouldn’t brag about that. Still, I heard that President Obama was on Oprah and that when asked to grade his presidency, he gave himself a B+. I don’t know quite what to think about that. If all we can expect is a half grade improvement, I’ll tell you right now… it’s not going to work. We’re going down. Sorry. Martin Andelman is a staff writer for The Niche Report. He also writes an almost daily column on Ml-Implode.com called Mandelman Matters. He also publishes a Monthly Museletter and you can follow "Mandelman" on Twitter. Send your reponses to martin@nichereportonline.com.

BRINGING UP THE REAR

Barack Obama Mandelman Takes on the President BY MARTIN ANDELMAN

kay, look… before I say another word, I want everyone to know that I did not want to do this. I put it off all year, and I take no pleasure in doing it even now. But someone has to say something, and it might as well be me. The simple fact is that our president was a tremendous disappointment to me last year, and although I tried my best to put someone else into this slot, I just could not convince myself to do so. What the hell is going on in the mind of The White House? I know this is a magazine that people in finance and banking read. And I know that finance and banking types want to believe our economy has turned some sort of corner, but please… no one seriously believes that, do they? What corner? The stock market is up, I suppose, but as to why, no one really knows. Unemployment is as bleak as ever. And foreclosures… well, don’t even get me started. What’s better, exactly? (Write to me, I want to know.) When Barack Obama gave his speech introducing the Making Home Affordable program on February 18, 2009, he said his plan would save 7-9 million homes… then it was 4-5 million homes… now it’s… well… maybe it won’t save any homes. As 2009 came to a close, the HAMP program had something close to 700,000 trial modifications and roughly 30,000 permanent modifications. The program’s only claim to fame is that it did better than Bush’s Hope-4-Homeowners program that accomplished essentially nothing. Banks and mortgage servicers made the news almost every day from the summer of ’09 forward, for absolutely screwing around homeowners in the worst ways, but all

President Obama did was call the bankers to Washington D.C. for yet another talking to… and the CEOs of three of the largest banks didn’t even show up. They said they were stuck in New York due to fog, which I suppose is better than them saying it was rain… or cold weather, but still. It’s the President of the United States, and New York is simply not that far by train, for heaven’s sake. The CEOs that didn’t make it were from Goldman Sachs, Morgan Stanley and Citibank… and we absolutely own Citibank, wouldn’t you say? I know, Secretary Geithner was uber-clever making the cash we gave them come out to us owning 36%, of whatever he said, but the guy running Citi should have walked to The White House if the president asked him to be there. Goldman Sacks CEO… Lord Blankcheck didn’t make it, but I understood that. He outranks the president, and besides… Geithner spends so much time on the phone with him that I believe we’re funding part of the health care bill by turning the call from Treasury to Wall St. into a ‘900’ number. Plus, Lord Blankencheck was busy doing “God’s Work,” which is apparently a euphemism for handing out $16.7 billion in unearned bonus checks… I mean stock options. And speaking of outrageous bonuses, our man-ofthe-people president presided over the banks giving out $91 billion in bonuses this past year. $91 billion. Think about that for a moment. TARP was only $700 billion. That’s like one seventh of TARP… in bonuses! That’s truly stunning. I read that the $91 billion figure represented a 45% increase over last year… last year… when the banks were all very close to bankrupt. I though this guy was a community organizer who didn’t run for president to help a bunch of “fat cats”. What am I missing here? And where - continued on page 49

December 2009/January 2010

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