Issue 042 January 2011 TheNicheReport.com
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14 Man on the Hill Protections with consequences.
18 Is It Really an
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Audit? Wall Street Reform & Consumer Protection Act, Title XI.
Bringing Up The Real 50 30 2011, The Rear Tech Crunch Unemployment, mortgage rates and inflation.
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CONTENTS
18
Issue 042
January 2011
Is It Really an Audit?
30 35
What Processors Aren't Telling You
COMMERCIAL
pg 42
HARD MONEY & NON-PRIME
pg 41
ConStruction
pg 42
Service Providers
pg 43
MANAGING EDITOR Stewart Mednick stewart@thenichereport.com
50
Man on the Hill Marc Savitt President National Association of Independent Housing Professionals Protections with consquences.
Techspot Rick Roque owner menlo company 2011, the real tech crunch: Unemployment, mortgage rates and inflation.
Center Stage with Streetlinks The Niche Report The Niche Report talks with CEO Steve Haslam.
6
pg 41
CO-FOUNDER & PRESIDENT David Pegg david@thenichereport.com
Wall Street Reform & Consumer Protection Act, Title XI: Federal Reserve System Provisions.
Amie Wills Independent loan processor
14
Agency & FHA
FOUNDER & PRESIDENT Robert Pegg robert@thenichereport.com
Peter Hébert
12
NICHE REPORTS
January 2011
Bringing up the Rear Martin Andelman mandelman matters ml-implode.com Senate Minority Leader Mitch McConnell.
DEPARTMENTS
09
Note from the founder
10
Letters to the editor
29
THE VOICE OF HOUSING
33
What's your mortgage IQ?
37
tip of the month
46
LENDER & RESOURCE DIRECTORY
EDITORIAL / CONTENT MANAGER Kristen Moser kristen@thenichereport.com ACCOUNTING MANAGER Shawna Ingram shawna@thenichereport.com Advertising Director Jessica Grizzle Jessica@thenichereport.com Advertising sales Heather Bopp Heather@thenichereport.com Production Manager Henry Suchman henry@thenichereport.com Production Assistant Dawn Exner dawn@thenichereport.com COLUMNISTS & Contributing Authors Martin Andelman Marc Savitt Peter Hébert Stewart Mednick Jim Russell Rick Roque Amie Wills
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NOTE FROM THE FOUNDER
We’ve just returned from attending NAMB West in Las Vegas NV. I met and heard from some true industry professionals; let’s face it, if you’re still originating or participating in our industry, you’ve earned the right to be called a true industry professional. In fact, I met and conversed with a mortgage company owner named Suzy, who innocently enough, has one hell of a story to tell, or rather one story of hell to tell. She comes down from Alaska every year to help support NAMB and has been originating mortgages for nearly twenty years. She has seen ups and she has seen lows, including this time around. But what makes her story even more intriguing is she’s reeling from a failed Federal indictment(s) that has affected her and her children’s health and means of making a living. Her story illustrates two profound points, one, the government doesn’t know Jack. And two, they are out to persecute the Broker, the last man on the totem pole in terms of who doled out mortgages, and perpetrate the myth that the broker is to blame. This lady is a fighter. She didn’t take “the deal” the Fed tried to force on her because she did nothing wrong. She fought her ass off and the “bear” finally gave up, although not without inflicting heavy mental and physical damage. I have invited her to author her story for us to publish. Stay tuned. I also had the pleasure of meeting Doug Chang, owner of a little company called Calyx. Doug is the most unassuming and genuine person you will ever meet, especially when you realize he heads one of the largest and most successful LOS companies in the industry. Our booths were across from each other and towards the end of the event he graciously invited us out to dinner. We spent time with him and his Sales manager Tate, and received insight and knowledge of the goings on within Calyx. I can tell you confidently, Doug has left no stone unturned and knows exactly where Calyx has been and exactly where Calyx is going. It gives me peace of mind knowing our industry continues to foster brilliant and innovative people like the ones at Calyx. This issue marks, for many, their last free issue of TNR. As we work with advertisers and trade associations to bolster our subscriptions via our “gift subscription” program, we will be deleting many aged “free” subscribers from circulation. If you have not already re-subscribed at the highly discounted annual rate of $19.99, please go to www.TheNicheReport.com and subscribe now to continue receiving the only mortgage magazine worth reading – use discount code tnr1999. Keep up the fight,
Robert Pegg
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9
Letters to the editor I just read Martin Andelman’s “Securitization” article in the November issue of TNR. I haven’t always agreed with Mr. Andelman, but this article was thorough and drew logical conclusions. I think a “Layman” would be able to read and understand the article and angrily come to the same conclusions. It is a shame our “Lay” Congress does not share this capacity. Is there any way to get this article into the Congressional Record? This assumes of course that Congress actually reads (Or reads what it reviews and passes into law)! Bill W. – Mortgage Consultant
9 Marketing Mistakes by Molly Dowdy, November 2010 Issue This article rocks!! Molly’s tips on marketing mistakes were great stuff. I have been amazed at some of the ‘mistakes’ I see loan originators make such as using all lower case letters on loan applications (really high school), silly email addresses and lack of branding. Anne J. - Broker/Owner
MERS: Myths, Misconceptions, and Realities by Joe Murin, September 2010 Issue This article is a myopic explanation of MERS based on a “victims and villains” dichotomy. Murin fails to recognize that an 1872 Supreme Court ruling stated that the Note and Mortgage do not have a separate existence. Through MERS, it appears that they do, which explains the faulty foreclosure actions on the wrong houses and mortgage free properties, moreover, bypassing the county recordation requirements compromises governments of revenue and creditors of security interests. Peter H. – Industry author ***
The MERS article had so many distortions, half-truths, and outright falsehoods that it compels a reply. Unfortunately, a point-by-point refutation would require at least twice as much space as the original article. MERS was designed not for
Letters to the Editor may be e-mailed to info@TheNicheReport.com or faxed to 703-991-2362. Include your full name, email address, and daytime phone number. We are unable to publish all letters and may edit letters for length and clarity. Visit us online at www.TheNicheReport.com to subscribe to our magazine and/ or eNewsletter. Or call toll-free at 866-964-2695 for more information.
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January 2011
transparency but to conceal. Bill M., B.S., J.D., LL.M. – Mortgage Broker
Bringing Up the Rear: Tim Geithner by Mandelman, October 2010 Issue Hey Martin, Please keep up the good work! You are nothing short of brilliant in your analysis and dissection of the Tim Geithners of the world. Jerry C. – Managing Director, Dean Consulting ***
Martin - I look forward to your articles each month. I’ve been a loan originator for 16 years – and I have not read too many honest-to-God, pull-no-punches articles like yours! Carry on – and send them to the White House and your Senator and Representative too! Take care and keep spreading the Word! Francine F. - Mortgage Consultant
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