TNR - October 2012 Loan Officer Edition

Issue 063 October 2012 TheNicheReport.com

For Mortgage Origination Professionals

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Housing Election - Which Candidate is Better for Homebuyers?

It's the economy, stupid.

14

FEATURE ARTICLE How to Meet Face to Face with More Referral Partners Do in two days what most people do in a whole month.

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CONTENTS

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Issue 63

October 2012

How to Meet Face-to-Face with More Referral Partners Michael Mann

18 21

Housing Election - Which Candidate is Better for Homebuyers?

Harrison Stowe NVR inc.

It's the economy, stupid.

I Never Thought of That!

Realtor速 Marketing Secrets

Let's Wait 'til After the Holiday ralph lovuolo, Sr. president, mortgage motivator Accountability eliminates procrastination for many of us.

29 6

31 33

Bill Early billearlyspeaks.com The affinity between financial planners and lenders.

doren aldana mortgage marketing coach Secret #4: Compile a 'top 100' Realtor速 list.

26

The Upside of the Downturn Harrison Stowe America's best hidden markets.

October 2012

prime & FHA

pg 37

Commercial

pg 37

JUMBO

pg 37

HARD MONEY

pg 38

MULTIFAMILY

pg 38

Service Providers

pg 39

Publishers

Do in two days what most people do in a whole month

10

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35

Mortgage Interest Rebate Accounts Eric thomas www.unitecongress.com Giving homeowners a leg to stand on.

Maximizing Profit in a Bull Market K. Justin Restaino vice president titan list & mailing services, inc Mortgage marketers use recent trigger data lists to target potential candidates.

Center Stage with United Wholesale Mortgage

Accouting Firms to Monitor National Mortgage Settlement Brian Mahany Mahany & Ertl

DEPARTMENTS

09 42

David Pegg david@thenichereport.com MANAGING EDITOR Stewart Mednick stewart@thenichereport.com

the niche report The Niche Report talks with President Mat Ishbia.

46

Robert Pegg robert@thenichereport.com

from the editor's desk advertiser DIRECTORY

Associate Editor Cathy Johnson info@thenichereport.com ACCOUNTING MANAGER Shawna Ingram shawna@thenichereport.com Advertising Director Jessica Grizzle jessica@thenichereport.com Advertising sales Hilary Bateman hilary@thenichereport.com Production Manager Henry Suchman henry@thenichereport.com Production Assistant Dawn Exner dawn@thenichereport.com Cartoonist Martin Bradford COLUMNISTS & Contributing Authors Doren Aldana Bill Early Chris Jones Ralph LoVuolo, Sr. Brian Mahany Michael Mann K. Justin Restaino Harrison Stowe Eric Thomas

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From the editor's desk

NAMB, National Association of Mortgage Brokers, is an important organization for all mortgage professionals to support. The NAMB National is an event that highlights all the reasons to support NAMB. This is coming up in a couple of months, so make your plans to attend now!

Every profession has an organization that supports and guides the direction the business future. NAMB has become a very important voice of the mortgage professional. When regulations, restrictions and congressional oversight become the barriers to a livelihood, NAMB steps up. Your voice is heard on Capitol Hill via NAMB. Not much more needs to be said. However, as simple as this may sound, it has taken years for this level of representation to be created, grown and supported. NAMB West is one event where you show the support and learn about your trade through attending and participating in the seminars and tradeshow. Each voice is just one voice. The collective voice of thousands is the way NAMB moves mountains. NAMB has become a very powerful lobby group to guide your profession in the direction you want it to go. The Niche Report supports and attends NAMB and the NAMB National event. See us there and let’s chat about your concerns for the future of the mortgage industry.

Thank you for the support.

Cheers!

Stewart Mednick

Official

MEMBER

TheNicheReport.com

9

Housing Election - Which Candidate Is Better for Homebuyers?

To quote a man much wiser than myself – it’s the economy, stupid.

by Harrison Stowe

T

his is an election that has come down, tooth and nail, to pretty primal questions about economic recovery and what is best for the American taxpayer.

While the 2004 election centered on questions about defense and national security, this year’s incumbent-versuschallenger dialogue has swung far towards questions of which contender is best equipped to help lift America from this economic quagmire.

While I’m not here to advocate for any particular candidate’s economic policies (and elections are not won solely on economic platforms), I feel it is more than sound reasoning for any real estate wonk to dip their toe in the pond typically occupied by policy wonks. Both candidates offer their own economic and tax platforms, and both candidates offer incentives and drawbacks for those keen on home purchases and real estate investments. In no prejudicial order, let’s examine our incumbent candidate: Barack Obama assumed office only shortly after 10

October 2012

the 2008 recession began snowballing. While his first presidential run was built on a platform of social change and broad reforms diametrically opposed to the policies championed by the preceding Bush administration, lingering debt in the public coffers and private sector stagnancy have forced the national discourse in a radically different direction.

President Obama’s economic platform is much more aligned with Keynesian doctrine, which endorses limited but important input from the federal government in shaping economic policy. Keynesians are much more likely to endorse social security and social safety nets, in addition to limited business regulation and public debt relief. Barack Obama’s brand of neo-Keynesianism has won supporters ranging from economist Paul Krugman to veteran economic liberals like Senator Dianne Feinstein, while building resistance from more libertarian advocates like Mark Spitznagel and congressional conservatives like Paul Ryan and Rand Paul.

However, here are breakdowns of the possible pluses that a second Obama term could provide homeowners and

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real estate investors: •

Obama supports extending homebuyer credit to those interested in purchasing their first home.

•

The Obama administration has consistently vouched for mortgage debt relief. While the evaluations of economic observers remain mixed, the Making Home Affordable Program (MHA) offers support for mortgage payment in addition to relief for those facing foreclosure and underwater mortgages.

•

The reduction of interest rates under Obama has made borrowing and loans easier to sustain, which could have positive ramifications on those who handle their mortgages with prudence.

Mitt Romney had long been expected to emerge as the Republican contender against Barack Obama in the 2012 election, but only recently accepted the party nomination.

While his ideological stances have shifted over the course of his political career, his elevating of Paul Ryan as his running mate has affirmed his platform’s allegiance with staunch fiscal conservatism. Paul Ryan has long endorsed

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Mitt Romney has frequently been critical of lowered interest rates. Increasing interest rates would prove a blessing for homebuyers with a high volume of personal investments.

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Mitt Romney broadly endorses rolling back government programs like MHA and encouraging the capital back into the private sector. Those who advocate this position (like his recently confirmed running mate) point to it as a means of stimulating the economy and curtailing the recession overall.

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Those who hold faith in government-exempt solutions to lifting the economic quagmire will likely take heart with Romney’s favoring of cutting targeted programs like debt relief and housing loans, and letting the private sector economic gears turn unaltered.

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public sector austerity measures, and brings an angle to the Romney-Ryan ticket that can be framed as the fiscal opposite to Barack Obama’s neo-Keynesianism.

Ryan’s crafting of the Path to Prosperity budget has shown him strongly in favor of loosening government regulation of the private sector, and cutting taxes for the highest-earning income bracket. Congressman Ryan’s major impetus for this position has been the belief that high-earning Americans will invest their capital in various holdings or private enterprise. Ryan has argued that this will stimulate the private sector and encourage job growth that drives away many of the post-recession woes, including a sagging housing market.

However, generalizations about the VP-hopeful’s fiscal leanings aside, here are areas in which Mitt Romney as president could provide boons to homeowners and property investors:

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How to meet face to face with more referral partners Do in two days what most people do in a whole month

by Michael Mann Michael Mann, a loan officer from Allentown Pennsylvania and faculty member of The Mortgage Marketing Animals, shows you how you can do this, as well as how to never be late for the appointments, spend no gas money, and keep you from wasting your valuable time “in transit,” stuck in traffic … and it is not meeting via webinar, either.

I

t all started six months ago, when I was sharing ideas with a loan officer about growing his Realtor referral relationships. I asked him how often was he meeting real estate agents face to face and what was his plan to meet new referral relationships. He said that he didn’t go out and meet with his partners because it costs a lot of money in gas and takes up a lot of his time driving in the car and stuck in traffic.

While this statement may shock some of you, this is unfortunately a mindset for a lot of loan officers and real estate agents in the industry.

Let me say this, there is a better way to do things …. a much better way.

It’s called appointment stacking. Now, this is not putting appointments back to back and doing them in a row, like a “milk run” with you running all around town. Remember, I said that you would not be driving across town, you wouldn’t be wasting gas, and you would never be late for another appointment.

You stack your appointments where you have “home-court advantage.”

Here is how I do it.

1. You pick your day or days. My days are Tuesdays and Thursdays.

2. Pick your restaurant. I do Tuesday in one city and Thursday in the next city.

3. Pick your list of partners that you want to meet with.

4. Call them and tell them that you want to meet with them to buy them a cup of coffee or breakfast or lunch.

5. Go to the place in advance, introduce yourself to the manager. Tell him what you are doing and how long you will be there. Explain to the waiter/ waitress that you will be meeting multiple people and to make sure they come over right away when a new person gets there.

6. Set up your appointments back to back.

7. Tip your server well … VERY well.

8. Do it every week.

Every time I go into the restaurant, the faces of the staff light up. Every time I leave they are always sure to say “See you next week, right?” as if they are

already anticipating my next arrival.

Today I met with five Real Estate Agents in a row: 9 to 10 a.m., 11 a.m to noon, and 1 p.m. Each referral partner meets the other as they show up and before they leave. It works like a charm – they all meet, I talk with agents, some stay and talk, and the agents talk about all their problems and what ails them while I write notes.

When the first agent leaves (usually about 10 or 15 minutes) and it is me and the next agent, I already have a list of what to talk about because they just complained to the previous agent about their problems. I am getting a blueprint of exactly what to do to impress the agent and how to win their business.

Here is the kicker: agents are meeting people that they have talked to before but maybe never met. They are seeing people that they haven’t seen in a long time and are rekindling friendships, etc. The next time they see or talk to that person, their brain triggers, “Oh yeah, I met them with Michael Mann at that restaurant a few months back.” This is called “buying brain cells.”

They also see these other agents coming to meet with me so they think, ”Michael Mann must be good.

If all these other people are hanging with him, I want to hang with him too.”

I do all of this in less than 10 hours a week. I don’t waste gas driving to agents’ offices, I never sit in traffic, and I am never late for an appointment. The bill is usually $50 to $60, and I always tip the server 40% to 50% of the bill. They tell everyone about “the guy who tips big and sits here while people come to meet him.”

When I come back the next week, someone always says, “Hey you are that guy Richard told me about, what do you do for a living?” Most of them call me by name and introduce themselves. They ask me questions like, “I’m thinking about buying a home but I’m renting right now, could you help me?” Cha-ching. Or, “My parents are thinking about refinancing, do you know what they should do?” Cha-ching.

I always end up getting a referral each day from one of the partners I meet with. I always follow up with a handwritten note card and a phone call to each of the agents (asking for referrals of course). About 50% of the new agents I meet with send me a client in the first 30 days. Over 80% of the agents that I meet for the first time will want to meet again, but I meet with less than 50% of them. The reason is I am only looking for

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like-minded people, and I can usually identify that in 15 minutes or less.

Each week I will identify one or two really great like-minded referral partners that I start working with, and within 45 days we are referring back and forth. The cool part is that when I teach them how to stack their appointments and do the same thing that I am doing, the referrals start flooding in usually within 60 days of the initial meeting.

Additionally, I always get one or two of the managers or employees from each establishment a mortgage, and I am always able to refer people from the restaurant to my referral partners.

In addition to real estate agents, I also mix in appraisers, CPA’s, insurance professionals, attorneys, home inspectors, etc....

I get a lot of questions regarding this method because many of us have trained ourselves to think that this is not possible. The average loan officer tends to focus on the reasons why they can’t pull this off rather than on the reason why this is AWESOME. So don’t be average!

Michael Mann is a branch manager at Fairway Independent Mortgage Corporation. The author of the book From For Sale to $old, Michael’s focus is on helping Loan Officers and Real Estate Agents alike to be better business people and to have better business lives. Michael is the most recent addition as a faculty member of The Mortgage Marketing Animals and works hand in hand with Carl White to make better loan officers nationwide……

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I Never Thought of That!

The affinity between Financial Planners and Lenders

by bill early

E

ven though I’ve been developing and implementing successful asset management marketing initiatives for many years, I decided to do some fresh investigative research. I thought (to myself, of course), who haven’t I spoken to about the natural connection – affinity – between Financial Planners and Lenders? I opened my computerized data base, searched “finance” and came up with good ol’ Russ; golf buddy.

Bill: Russ, this is Bill ... Bill Early. How the heck are ya?

Russ: Fine, Bill, do I owe you money?

Bill: You probably do ... but that’s not why I’m calling. I wanted to ask a few questions about your business and Financial Planners in general. Do you have a couple of minutes?

Russ: Sure, shoot Bill: Russ, what’s your number one objective when working with your clients?

Russ: My number one objective is to get a complete overview of their portfolios. I want to know what 18

October 2012

they have and where it is. It helps me maximize their investment returns and helps me fully penetrate the clients’ portfolios. Basically, that’s how I get paid!

Bill: So, your basic role is to identify, protect, and build your clients’ assets.

Russ: Hey, that’s good. I’m writing that down.

Bill: Russ, how many clients do you have?

Russ: Well, around 200, a hundred of which are very active.

Bill: How many of your clients own as opposed to rent their homes?

Russ: All of them.

Bill: How many of your clients have equity in their homes?

Russ: Most of them.

Bill: How many of your clients are earning an investment return on the equity in their homes?

Russ: All of them?

Bill: Well, if their house doesn’t appreciate, what’s their return on equity?

Russ: Zero.

Bill: That’s right. It’s not the equity that’s earning a return; it’s their home that’s appreciating, regardless of the amount of equity they’ve accumulated.

Russ: I NEVER THOUGHT OF THAT! Bill: If your clients are saving money in a cookie jar, what’s the rate of return?

Russ: Zero.

Bill: So, what’s the difference between saving money in a cookie jar and saving money in the form of home equity?

Russ: I NEVER THOUGHT OF THAT! Bill: How many clients do you tell to save money in a cookie jar?

Russ: Zero.

Bill: How many clients ask you about the merit of home equity versus investments?

Russ: I NEVER THOUGHT OF THAT! Bill: Russ, of your 200 clients, what do you suppose is the average value of their homes?

Russ: I don’t know.

Bill: So, when you are collecting information on your clients’ portfolios – their assets and investments – you’re not looking at their house as one of their largest assets and their mortgage as their largest liability?

Russ: I NEVER THOUGHT OF THAT!

Bill: Let’s say the average house here runs around $300,000.

How much of that would be equity for your average client?

Russ: I don’t know...say a hundred grand.

Bill: Well then, let’s say your clients wanted to ‘utilize’ $50,000 out of every one of their homes. How much would that be?

Russ: (pause...click, click, click) That would be a big, fat $10 million! [Big smile. I just know he had one.]

Bill: Since American homeowners can borrow money cheaper than any Fortune 500 company ... and the Government subsidizes that loan through the mortgage interest deduction ... and you can probably generate a return twice the effective after-tax interest on that debt ... how long should your clients wait before getting out their home equity?

Russ: Not very.

Bill: Russ, I know you understand the concept of arbitrage ...

Russ: Yah ... buying a commodity in one market and selling it at a profit in another.

Bill: Russ, can you think of a lower-risk arbitrage opportunity for your clients than ‘utilizing’ home equity out of their big cookie jars, earning additional tax write-offs, and investing those bucks with you?

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Russ: I NEVER THOUGHT OF THAT! Bill: Is an extra $10 mill in asset management valuable to you?

Russ: (pause...click, click, click) Mmm. [Big smile. Trust me, there was a big smile.]

Bill: Russ, what are the biggest objections you get from your clients when you recommend investing more money with you?

Russ: It’s usually one of two: they either don’t have any more money to invest, or they’re working with someone else and want to leave those accounts alone.

Bill: So, if you could offer a value-added service that your competitors don’t – like MORTGAGE MANAGEMENT – and show your clients how to better ‘utilize’ money from their big cookie jars, you could really do some good, am I right?

Russ: Good thinking, Bill ... the mortgage management thing. I NEVER THOUGHT OF THAT! Bill: Oh, and Russ, do you think there would be any value in your contacting all of your clients and apprising them that mortgage rates are AT A 50-YEAR LOW?!!! Do you see any financial investment opportunities in helping them free up $100’s to $1,000’s per month?

Russ: Wow … that is a great idea! I am always looking for ways to reconnect with them, and that would be perfect.

Bill: One more question, Russ: How much money do you think you owe me?

Russ: I gotta go.

Summary: Whether you approach Financial Advisors, CPAs, or Insurance Agents with this suggestion, they all will appreciate and find your approach refreshing. And, candidly, pulling equity out is not as popular or available today as it was prior to our recession, but the concept is still valid. Certainly, the opportunity to reduce mortgage interest rates for clients is ‘on fire’. And remember, the reason you give as to why you would like to spend 30 minutes with these affinity groups is that you have a strategy to HELP THEM GROW THEIR BUSINESS! It’s a home run for lenders.

Bill Early has been speaking to lenders and businesses around the world on how to Think Beyond Conventional Wisdom for over 25 years. Visit www.BillEarlySpeaks.com and think about having him present to … well, anybody who needs it. You can contact Bill at bill@billearlyspeaks.com.

How we see it

20

October 2012

Realtor® Marketing Secrets Secret #4: Compile a "Top 100" Realtor List

by Doren Aldana

I

n my last article, I talked about the eight unique advantages of working with top-producing Realtors and the six important criteria for determining if they qualify to work with you. As you might expect, this kind of relaxed, confident posturing only works if you have a powerfully compelling, unique value proposition that Realtors actually want and need. If you haven't noticed by now, touting "great rates" and "great service" ain't gonna cut it. As I said before, you need to position yourself as an irreplaceable, indispensable asset on their team.

If you don’t have a clear, concise, well-articulated unique selling proposition, you are, by default, a replaceable commodity.

Today’s Realtors are looking for a mortgage professional with more than just great rates and excellent service – that’s a baseline expectation. They want

someone who understands their biggest challenges and is willing to go the extra mile to deliver unique solutions.

Now, the question begging to be asked is, “What is the #1 biggest challenge every Realtor faces?” No, it’s not that they need better financing options, lower rates, snazzier feature sheets or a better economy. The single most important factor to their success in any market is their ability to attract quality listings and sell them FAST at top dollar! Period. That’s it! As simple as that sounds, very few Realtors ever unlock this mystery. The rare few who do become the envy of the entire industry, enjoying an income most only dream about.

What if you – the mortgage professional – could address this #1 challenge by providing your Realtors with a selection of highly effective tools, systems and templates, specifically designed to help attract more quality listings and sell them fast, for top dollar? Would that set you apart from the pack? Would that give you a greater position of strength? Would it make you irreplaceable?

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You better believe it baby!

In fact, if you’re able to provide this kind of unique value, you’ll have Realtors banging down your door to do business with you and endorse you to all their clients.

What a refreshing change that would be!

Now, let me walk you through the first of my seven steps for building a strong, profitable partnership with top-producing Realtors.

STEP 1: Compile a "Top 100" Realtor list Instead of just prospecting a few Realtors and hoping for the best, I recommend using the Law of Large Numbers to tip the scales of fortune in your favor. For example, let's say your goal was to attract four key Realtor partners. In that case, if all you had was a list of four Realtor prospects, the likelihood of converting 100% is pretty low – if not impossible. Not to mention the fact that these Realtors still need to be qualified to determine whether they're the right fit. On the other hand, you can increase your chances of success by expanding your prospect universe and compiling a Top 100 List of awardwinning Realtors to market to.

Here are a few tips for compiling your "Top 100" Realtor list: First, create a Warm List of all the Realtors who already know you, like you and trust you. They might already be sending you referrals, but perhaps you want to cultivate those relationships so you can attract even more referrals more often. If you have an existing database of "warm" Realtor contacts, you can export it as a CSV file in an Excel spreadsheet. Most CRM software programs allow you to export your data in this format. For a list

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Second, compile a Cold List comprised of awardwinning Realtors in your area who don't know you yet – that's why we call it a "cold" list. The reason you want to start proactively targeting "award-winning" Realtors is because top producers tend to have a lot more listings (buyer bait), more buyer clients and more client influence, all of which culminate in more capacity to send you more quality referrals. The way I see it, if you're going to court Realtor partners, you might as well go after the BIG DOGS who can make the BIGGEST impact on your bottom line!

Believe it or not, it's actually quite easy to find and compile a list of award-winning real estate agents in your area. All you have to do is search in Google using the following keyword terms: The real estate company you want to target, the word "awards," the year they won the award, and your city. For example, you might search for something like, "REMAX Awards 2011 Vancouver." If you do a search in Google for those keyword terms, you'll come up with a whole bunch of award-winning Realtors who work for REMAX in Vancouver and won awards in 2011. So go ahead and do this for your particular search parameters and then compile your database of those Realtors.

If you're using an Excel spreadsheet to compile your data, be sure to organize your contact data into separate columns. For example, have separate columns for their first name, last name, company name, street address, unit number, city, province, postal code, phone number, fax number, email address, etc. Having all of this data organized into separate columns will make your life a lot easier when it comes to starting a direct mail campaign.

As you can imagine, unless you're an administrative wizard, all of this research and data compilation is about as much fun as getting a root canal – it's extremely time consuming, mind-numbing work. However, you'll be glad to know there is an easy, cost-effective alternative: delegate it to an assistant! If you don't have an assistant, you can easily hire someone on Elance.com to do this for you for under $50. Why subject yourself to all that unnecessary drudgery when you can hire someone in a lower-wage country to do it all for you? This is a no brainer!

To make this even easier for you, here's a sample Elance ad that you can customize:

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fix& flip Once you have your Top 100 Realtor List compiled, the next step is to deploy an effective, multi-step, multimedia marketing campaign that grabs the Realtors' attention, piques their interest, and inspires them to want to meet with you. As you can imagine, this is a lot easier said than done. However, if you have the right approach with the right value proposition, you should be able to book at least 15 face-to-face meetings and attract 4 quality referral partners from your original list of 100 prospects.

Remember, it's not about quantity; it's about quality.

For example, if your average commission per deal is $2,100, all you need is just four Realtors who send you an average of one measly referral per month to add an extra six figures to your annual income. That's why I recommend working with just a few quality, committed partners instead of spreading yourself thin trying to work with dozens of halfhearted, lukewarm prospects. It's all about going narrow, deep and rich instead of wide, shallow and poor.

In my next article, I'll walk you through steps two and three of my seven-step formula for building strong, profitable partnerships with top-producing Realtors. You'll learn how to use direct mail to stand out from the clutter and generate interest. I'll also show you how to follow up by phone with confidence and grace, which ultimately leads to booking more face-to-face meetings. You'll get the exact words to say and how to say them. Stay tuned…

Doren Aldana is considered by many to be the nation's leading Mortgage Marketing Coach. Since 2005, he has been dedicated to helping mortgage professionals attract more clients with less effort, regardless of market conditions.

For a free online workshop on "How to Turn Your Realtors' Listings into a Flood of Red-Hot Mortgage Leads," visit: www.

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Let’s wait 'til after the holiday Accountability eliminates procrastination for many of us

by Ralph LoVuolo, sr

I

’ll be ready after the holiday.

There’s a holiday coming, can we wait till after that? I think to myself, Holiday, there is always a Holiday coming, what the hell are you waiting for?

There are definitely a few select things that incense me in the business world, but nothing more than procrastination. I just hate it. It makes me crazy. I become impatient with the waiting, the delays, the added variables, the maybe’s, the putting off. What the hell is going to change except that you’ve put off making a decision even further? Why can’t you make a decision and live by it? What are you waiting for? To feel more comfortable? To be better prepared? To be more informed? To be certain you’re doing the right thing?

I often read articles that come to me, mostly through emails from various sources, about successful people, what they do, how they act, what made them successful – “The five most important things that VERY successful CEO’s do!

What Leaders have as their most valuable assets. Seven ways 26

October 2012

to know you’re a good CEO.” – Have you seen any? Do you read those articles? Do they mean anything to you?

NO guts no glory?

No, NO willingness to change makes us feel comfortable – and we want that more than anything.

I talk to people like you all the time. You like being self-employed – even if you’re a salesperson in your company, you’re self-employed. Most managers don’t supervise their sales staff anyway, so most of you determine what you do every day, so you’re self-employed by my definition.

Leaders have to make hundreds of decisions every day.

They actually make a decision and then put the decision into action. Many times that decision requires them to move themselves out of their comfort zone of activity, even though the decision and subsequent action might make them feel uncomfortable.

When I was just out of college, my friends and I collaborated on an idea to create a new organization. We were going to call it The Procrastinators Club. We never did, because we couldn’t make a decision. The idea died for

the lack of a vote. But we decided, many times as I recall, to decide on it after the holiday. We just never actually got around to it. You remember the “Round TOIT”?

Procrastination will kill you. It will freeze you to death.

It will cause you to become stale. Procrastination is the one thing that DECIDERS eliminate from their mindset, their daily activity list. And they do it proactively by actually thinking about it.

My first real job had me reporting to a man who had a background as a consultant in time management. He said one thing to me in the first week of our relationship. He said that every single piece of paper that came to me needed a decision, even if the decision was to decide later.

So it was sometimes OK to put that piece of paper back in my “IN” box. But if I did it too often – and he would be watching me to see if I did – then he would know that I had no guts, that I had a problem that might require me to find another line of work. He put the fear of God in me. Maybe some of you need that from time to time. But by the time you discover that you need to stop procrastinating, it’s way too late.

Accountability eliminates procrastination for many of us.

What do you need to do tomorrow that will help you earn more money, be more effective, better informed, develop a larger circle of referral sources?

Why don’t you do it? What are you afraid of?

If you tried to find more referral sources that could give you business, what is the worst thing that could happen?

OH, I know, they’ll say no!

I used to think it was a good thing to have people say NO when I asked them a question. I no longer believe that, nor teach it. It used to be true that training was done by asking a hundred people the same question and eventually someone would say yes. I used to believe that if I asked

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the same girl over and over if she would go out with me, eventually one of two things would happen – either I would die or she would say yes. I used to apply that principle to sales.

I no longer believe that this way of selling is the right way. My philosophy now is that I should never ask the person I am trying to sell a yes or no question. The right way to accomplish my goal is to present options and suggestions, ideas if you will, ideas that I already know are going to help my prospect do better, have a greater impact into their market and help THEM become more successful. So many people have told me that I’m wasting my time trying to change people, and that I’m never going to succeed. I don’t believe that.

So what do you need to do? Change! Do it now! Don’t wait! Don’t put it off till it’s too late. If you do wait, you’re putting yourself in danger of total failure.

Waiting will destroy you.

I’ve reconnected with one of my friends from my post-college days. He and I still don’t have a good name for our organization, but that’s only a joke. We really know, after spending over 50 years in the business world, that the people we knew who did the best were the ones who made the most decisions, changed the most during their careers, took the most chances, set written goals and made a written plan to achieve their goals, and finally, when necessary, changed their methodology.

Here is what I can promise you: if you keep putting off till tomorrow what you SHOULD do today and allow things to just happen to you, you’ll fail.

Ralph LoVuolo is Sr. President of Mortgage Motivator, a consulting firm on the cutting edge of the mortgage business to help people achieve their true potential. LoVuolo Sr. is one of the founding fathers and a two-term president of the New York Association of Mortgage Brokers. Additionally, he served as Parliamentarian for six years on the Board of Directors of the National Association of Mortgage Brokers. LoVuolo, Sr. can be reached atralph@mortgagemotivator.com, or visit him at http://www.mortgagemotivator.com

The Upside of the Downturn America’s Best Hidden Housing Markets

BY Harrison Stowe

D

espite the delicacy of it all, it’s hard to ignore the sound of a bubble bursting. With the remaining dam holding back a recession thoroughly broken in 2008, the myriad economic factors waiting to sink the housing market burst through and turned the economy into a much bleaker place for real estate investors. This sort of rising tide, it seems, puts us all underwater equally.

However, despite the at-best middling health of the housing market and lackluster investor enthusiasm, some housing markets have either sustained reliability or made a quiet return. For the all-weather investor, here are some regions where property investment might not be an exercise in irrational exuberance: Tennessee – Nashville metro region: According to a recent report compiled by local outlet News Channel 5, the Nashville metro region is showing signs it may emerge as a promising place for realty investments. While not a perfect drop-bounce in terms of investment opportunities, a combination of a recession-induced sink in housing prices

combined with increasing interest in home purchases spells a possible opportunity for those who care to make inroads into new investments.

Quoting sales statistics as well as remarks from David Klein, CEO of the Greater Nashville Association of Realtors, condominium sales have rebounded with notable strength since the housing bubble burst. While this still indicates a type of hesitancy and frugality on the part of the area’s homebuyers, an uptick in the purchase of conservatively priced units points to a more even-keeled consistency in property acquisitions.

The gauged value of certain property holdings in Nashville has dropped to a clear third of their price at during peak evaluation. By contrast, monthly home closings in August were up 27.3% from those recorded during August of last year. This is also the highest number of home closings recorded since 2007. While there’s much to be said about the consequence of fools rushing in, prudent foresight and shrewd investments could yield promising results.

Oregon and Southern Washington: According to a TheNicheReport.com

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new post on the Portland Business Journal’s blog, certain areas of Oregon and Washington are showing promising areas of investment for industrial real estate. The written analysis, provided by brokerage firm CBRE Inc.’s vice president Stuart Skaug, points to a spread of factors supportive of cautious optimism. Tenants in the region are committing to increasingly long leases, land purchasers are demonstrating a willingness to purchase vacant or undeveloped land, and low interest rates mixed with a high volume of local institutional capital all portend a slow but steady recovery in the area’s housing market. While a local publication’s endorsement of its own region’s economic health and investment promise can understandably invoke skepticism, the greater Portland region could possibly emerge as an otherwise overlooked property region with workably promising returns.

Washington, D.C. metro region: While centering on one of America’s most densely populous and affluent regions, and a far cry from the comparative quiet of Portland, Washington, D.C.’s standing demographic factors point to promising trends for the shrewd property investor.

Our nation’s capital has long maintained a well-earned reputation for tenant transience, and according to a new release from the Washington Post, a wave of retirement among the region’s wealthier boomers portends migration outward from the city heart towards the more serene local suburbs. Citing Waverly Hills in particular, the report highlights that so-called ‘urban villages’ have long been popular with middle-class government employees, and are becoming even more popular with the current demographic shift. Shrewd investors could well make sound predictions and stay at the crest of a possible wave of housing migration.

Paterson, New Jersey: In line with cautious optimism around a slow housing recovery, and similarly in step with the uptick in seasonal buys experienced this summer in

Tennessee, Paterson, New Jersey is seeing new life pour into its housing market. According to reporting from Northjersey.com, the current time a house stays on the open market has fallen substantially since 2008. Another promising sign is the fact that, on average, current home sales return 93.8% of the asking price, a rise from the average return of 88% on the list price recorded in 2008.

Similarly, townhomes in the area tend not to demand the exorbitant prices rightfully associated with many of the neighborhoods closer to metro NYC. As is the case with other newly emergent housing neighborhoods, prudent investment could lay the groundwork for healthy returns.

Whether speculation around a gently rebounding housing market proves to be either exaggerated or premature, a few preliminary signs point toward opportunities to unfreeze spare capital you may have held back after the bubble burst and to invest it carefully into what would have previously been unremarkable regions.

Harrison Stowe is a writer for NVR Inc. and a homebuilder in Montgomery County, MD. Blogging about a range of real estate topics including investment, mortgages, and new construction, Stowe combines finance knowledge with experience in the current real estate market.

How we see it

Mortgage Interest Rebate Accounts (MIRA) Giving Homeowners a Leg to Stand On BY eric thomas

M

illions of Americans have gone broke by buying their dream home, and now financial innovation is needed to help savers and mortgage holders get out of debt. Wall Street and Congress have too much power – and they’re using it to keep corrupt individuals from going to jail.

It's payback time. I would like to discuss my idea for the creation of what I’m calling Mortgage Interest Rebate Accounts. It is time to take back the American homeownership dream from the current “Wall Street-Super Congress World” scam.

Banks have become fee-collecting machines. This is how they make their record profits. So how do we create a strong banking system to help the rest of us – the savers and borrowers? The answer is to allow homeowners to have Mortgage Interest Rebate Accounts. This concept would have banks rebating 50% of all interest back to the borrower. It is a 50/50 split between the borrower and bank so the banks are paying interest to their borrowers as well.

A key part of this concept is that the mortgage borrower gains access to the rebate money only after the

mortgage is paid off. Also, the Interest Rebate Accounts will earn no interest for the mortgage holder. The bank will be allowed to keep all interest it earns on Interest Rebate Account balances. The biggest hurdle will be that mortgage interest will no longer be tax deductible. Going into debt should not be encouraged by our corrupt political system.

With this plan in place, borrowers will have an incentive to never miss a mortgage payment. If they don't make a payment, they would lose all money in the Interest Rebate Account. For example, let’s say you paid $12,000 in mortgage interest last year. Imagine if half of this were rebated back to you. This $6,000 would add up to $60,000 in 10 years. Interest Rebates are a way to strengthen the middle class. This would bring enormous economic change by empowering consumers with cash.

Right about now, you may be thinking: why would banks want to offer Interest Rebates? We all know they only want to charge outrageous transaction fees. The answer is that the banks can also charge a fee for the Interest Rebate Account. They would also be able to attract investors and savers to make deposits into their bank by

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paying them interest. They can still focus on quarterly profits from their ridiculous transaction fees. Those of us who choose to be responsible and save can no longer be ignored, especially the retirees who need the interest to survive.

Here is another example of how this would work.

Let's say a mortgage has a 4% interest rate. Two percent of the interest would be deposited into an Interest Rebate Account and the other 2% would be deposited into an interest-bearing bank account. Say your mortgage payment is $1,100. For simplicity, we can say $100 of this payment goes to principal and $1,000 is interest. The bank would rebate $500 in interest and pay savers $500 in interest.

The bank will keep all interest earned on Interest Rebate Accounts. The end result is that savers receive interest, mortgage holders become savers, and banks lend money and pay interest.

Aligning the best interest of savers with quarterly bank profits is vital to changing our broken system. Providing the same income stream to savers and banks culminates in the idea of Mortgage Interest Rebate Accounts. When you consider that banks get their money for free from the Federal Reserve, Interest Rebates work!

Banks need to start working for honest hard-working Americans. When banks get money for free, it is only right for our interest payments to be rebated to us. In a financial market that mandates pretend rules, Mortgage Interest Rebate Accounts are one way we can fix our broken banking system.

Harry Brokass (A.K.A. Eric Thomas), besides being a fictional character in his own book, is a Certified Public Accountant who played by the rules and did everything right when he bought a home. Unfortunately, like many other Americans, playing by the rules just wasn’t enough and now he is a homeowner whose mortgage is twice the value of his home. This experience was the catalyst for Capitaol: Buying Our Democracy with Stolen Money, his attempt to even the playing field against Wall Street and “Super Congress World.�

Website: www.UniteCongress.com. Capitaol: Buying Our Democracy with Stolen Money can be purchased at www.

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Maximizing Profit in a Bull Market Mortgage marketers use recent trigger data lists to target potential candidates

by K. Justin Restaino

W

hen the Federal Housing Administration (FHA) lowered the Upfront Mortgage Insurance Premium to rockbottom levels in June, the decision was extremely beneficial for the mortgage industry. HUD’s ruling uncovered a large, lucrative block of potential clients around the nation. Almost immediately, a deluge of solicitations swamped borrowers who, after being stuck in high interest rate loans for years, were now easily able to refinance.

Naturally, the Direct Marketing industry has benefited from this activity. Direct mail companies everywhere are reporting large boons in business. In fact, business has been so good that some mortgage clients actually reduced the number of direct mail advertisements they usually send due to high response rates. A recent modest drop of 10,000 pieces for a client produced – in just two days – 198 unique calls.

They needed a week just to catch up. Business is definitely good, but just as there is a need to maximize leads when the market is down, profit maximization when the market is up is just as important. There is still money being left on the table.

In the past few months, the push by mortgage shops to market to FHA homeowners with seasoned loans prior to May 31, 2009 has been so intense that the marketplace has become oversaturated. Lending firms are advertising atop one another, sending mail pieces, directing calls, and emailing all of the same borrowers. While the influx of qualified borrowers still leaves plenty of room for mortgage shops to capitalize, the FHA’s decision seems to have dictated an over-emphasis on those specific homeowners. Even as HUD’s ruling went public I could sense what would be discussed in boardrooms across America – “We’ve got to get those seasoned loans prior to May 31st, 2009! They’re itching to get out of those highinterest loans!” The thing is, they’re right. It’s an easy pitch and there’s real value for the consumer. But it’s important not to get distracted by what looks like a sure thing. If it’s a sure thing for you, everyone else thinks it’s a sure thing too, and all the mortgage firms end up going after the same clients.

What many mortgage shops are failing to notice is that a large portion of the market is being ignored.

Mortgages in the 20- to 38-month seasoning window are excellent options for refinancing, namely loans from March of 2009 to November of 2010. Interest rates for these types of loans are still very low – 2.5% for an ARM, 3.5% for a TheNicheReport.com

33

FIXED. Their original rate during the time of seasoning was in the 5.25%+ range. The net tangible benefit of refinancing to the consumer is viable, and the savings on the rate alone makes it worthwhile. So, even though borrowers in the older seasoning window are refinancing in droves, younger loans also offer a huge upside. The best part of going after those potential clients is that not many mortgage shops are choosing to target them right now; the competition is minimal. Targeting both these mortgage brackets in conjunction is a surefire way to boost your firm’s bottom line.

Another change occurring in the industry as a direct result of FHA’s ruling is an increase in the use of “trigger leads.” Trigger data is generated when a potential borrower, re-fi, or purchaser has their credit pulled. With the excess of advertisements swirling around, there is a surplus of homeowners checking their credit. Mortgage marketers use recent trigger data lists to target potential candidates. These data lists are extremely time sensitive since the candidate is actively seeking a loan, and has already visited a mortgage broker and pulled a credit inquiry.

Therein lies the difficulty in using trigger leads. It places lending firms in direct competition. For the direct mail to be effective it must be attractive, personalized, and arrive before the consumer signs with another mortgage firm. While this may seem like too many variables for it to be an effective method of advertising, when trigger data is used correctly it is one of the most effective leads to use. The reason these leads are so useful is because you’re dealing with borrowers that have already shown a real interest in refinancing. The

desire to move forward is there. With so many interested homeowners getting their credit pulled due to FHA’s new expanded guidelines, trigger inquiries have swelled.

With the increase of mortgage activity in recent months, the connection between the mortgage shop and the marketing company is changing. It is imperative that the marketing team the mortgage shop hires is able to guide the advertising campaign from concept to conception.

The use of trigger data is accelerating this process. That means design, printing, and mailing need to be completed in-house, not sub-contracted to other agencies. With the competition as tough as it is now, there isn’t room for missteps from an advertising agency.

Business is up. Homeowners want to refinance. Direct advertising to these clients is working. But you have to remember this won’t last forever. It’s essential that you differentiate and streamline your advertising process so that you can make the most of a very lucrative time in the industry.

K. Justin Restaino is vice president at Titan List & Mailing Services Inc. For more than 13 years, he has led Titan’s Mortgage Division, helping lenders of all capacities grow their businesses utilizing targeted direct mail. With a specialized focus in refinance and purchase markets, Restaino has the insight for proper data and mail application for success. Reach him at (800) 544-8060, ext. 204, or Justin@titanlists.com. Visit www.TitanLists.com for more information.

How we see it

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October 2012

center stage

center stage with United Wholesale Mortgage The Niche Report talks with President Mat Ishbia the niche report

Mat Ishbia is President of Michigan-based United Wholesale Mortgage (UWM), one of the fastestgrowing wholesale mortgage lenders in the country. Under his leadership, he has taken UWM to new heights, growing the company into a nationwide top-ten wholesale lender. He has successfully driven UWM employees to place a strong emphasis on second-to-none customer service. His efforts have UWM and United Shore Financial Services, LLC well on their way to achieving 10 billion dollars in wholesale funded volume in 2013.

What makes United Wholesale Mortgage different from its competitors?

UWM is known for providing exceptional service, industry-leading turn times, expert Account Executives and the best technology in the business. We think strategically as to how everything we do at UWM will help make our brokers as successful as possible in today’s drastically different, regulatory-intensive lending atmosphere. Our topnotch customer service definitely sets us apart, and from the innovative products we offer to our award-winning

technology, everything is done to assist our brokers’ overall success and growth.

When I started at UWM nearly ten years ago, I was an Account Executive operating in the Chicago area. I learned firsthand what it took to really add value to brokers.

The level of support and responsiveness I delivered to my customers was instrumental to their success and my own. I was later recruited by our corporate office in Birmingham, Michigan to take the position of National Sales Manager at UWM, and began building our inside Account Executive team. I recruited only the best, brightest and most servicefocused salespeople. Every program and plan that we implemented was largely based on service.

We now have more than 125 Account Executives and, along with our support and operations team members, everyone stays intensely focused on service. So when you ask what differentiates us from the competition, I’ll respond that it’s a combination of things, but all of them have a common denominator – service.

While many lenders may cite service as being a differentiator, what makes UWM’s customer service a game changer?

Along with the speed of UWM’s turn times, we TheNicheReport.com

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center stage provide direct access to our underwriters. We believe that you should communicate directly with your underwriters, and that they should always be responsive to your needs.

Our underwriters call you on every approval and updated approval to explain exactly what you need to do to get your loan closed. We don’t have “go-betweens” at UWM – we let you talk to the person who is making the decision, which is not done in the industry anymore. This level of service is really unique and it allows us to make things as easy as possible for our brokers.

Is it your focus on service that defines your slogan, “Lending Made Easy”?

Lending Made Easy is UWM’s commitment to our broker network from submission to funding. We are continuously analyzing every aspect of our business to target how we can make things easier. From direct access to underwriting, to communication, to providing innovative technology, we’re constantly asking ourselves, “How can we make things even easier?”

Aside from our service focus, technology offering and extensive product selection, we provide a number of other free benefits to our brokers. UWM regularly holds educational webinars on industry trends, various products, how to effectively market themselves, selling smarter, etc.

Further, we offer an instant chat feature on our website to quickly answer any questions brokers may have. We provide direct access to our underwriters, and inside AEs are always accessible and focused on ongoing broker support. Our products are underwritten to DU findings with very few overlays, which allows our brokers to know what to expect when they get their approvals. In addition, our response times are fast – every UWM employee strives to pick up the phone on the first ring and swiftly responds to every email.

What type of products do you carry?

We offer a full set of mortgage products to our customers, from the standard Conventional, FHA, USDA and VA, to the more niche products. We pride ourselves as being the one-stop shop for products for our brokers. We launched our ELITE program this year to reward brokers that work with borrowers of the highest quality, to provide them with the best conventional rates and pricing in the industry. This product has given our customers the best of both worlds – the best pricing and the best service – which is rarely seen in this industry. We offer a jumbo program called the Big & Easy, which is a true jumbo product allowing loan amounts up to $2.5 million and LTVs up 36

October 2012

to 80% nationwide. We’re one of the few lenders in the country that has the capability to underwrite, close and fund jumbo loans all under one roof. UWM was also one of the first lenders to successfully implement and fully support HARP 2.0 and DU Refi Plus.

We hear that your technology is some of the best in the industry. Tell us what sets you apart.

We have a proprietary technology system that provides our brokers with free web-based technology tools which they can access and utilize 24/7. We wanted complete control of our technology and didn’t want to rely on a technology vendor that may adversely affect our service levels due to their own issues, so we built and manage it ourselves.

Our back-office technology allows us to provide two days or less in turn times on new loans and one day or less on conditions. We developed a web-based technology platform specifically for our brokers that we call EASE (Easiest Application System Ever), which allows them to securely log in, upload a 1003, run product and pricing scenarios, decision loans, upload imaged files, view realtime status, manage conditions, and easily communicate with our underwriters. Easy Qualifier, also known as EQ, instantly qualifies and prices borrowers live on up to 12 different programs at once, determines the lowest payment option, provides a compensation calculator, verifies loan parameters within UWM’s guidelines, and prints out a borrower’s results page that details their options and how much they will save per option. Our brokers rely heavily on our technology. We’re a 100% paperless operation, which includes our online signup process for brokers and correspondents.

What can we expect to see from UWM in 2013?

Even more of the same exceptional service, success and growth! We’re well on our way to becoming a Top 5 wholesale lender, and we’re being very careful to maintain our existing service levels as we grow. We’ve doubled our employee headcount and plan to hire another 400 over the next 12 months. We will be moving to a new company headquarters later this year in Troy, Michigan to accommodate our growth.

We will continue to offer free tools, services, training and more to make our brokers as successful as possible.

We will always be focused on making lending easy for our broker network by providing them with the highest level of customer service, communication and consistency. We’ll never deviate from our “Lending Made Easy” brand promise to our valued brokers. That promise is here to stay.

CLASSIFIEDS

Prime & FHA Icon Residential www.iconwholesale.com

National Wholesale Lender offering a full line of Conforming and FHA products.

We offer personalized customer service where our client is our primary focus.

Pacific Union Financial Correspondent

Fannie & Ginnie direct conduit offering Niche Correspondent.

correspondent@loanpacific.com

United Wholesale Mortgage 800-981-8898

Discover Lending Made Easy! UWM is a Technology Leader with UW to DU indings, Superior Customer Service, and an Expert Sales Force. The ELITE program provides the Best Conventional Rates & Pricing in the Industry!

Signing up is easy! Join our valued Broker network at www.UWM.com

Commercial NEW FundingEdge

Commercial Real Estate Finance, Business Finance and Oil & Gas Royalty Loans.

830-331-4030 & 210-249-2111 GreenLake Real Estate Fund, LLC 310-462-4637 Windvest Corporation 877-285-0777

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!

Specializing in fix and flips, rehabs, income producing and rental investment properties throughout Southern CA. We lend on SFR residential and COMM property. Simple application process with generous broker commissions.

Professional service with funding in 7 days. Call us today for a free quote or visit us online www.windvestcorp.com.

JUMBO BofI Federal Bank 888-883-9672

Jumbo and Super Jumbo Loans 5/1 - 7/1 and 10/1 options.

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

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CLASSIFIEDS

HARD MONEY/Construction/Rehab Athas Capital Group, Inc. 877-877-1477 x 777

A True Wholesale Direct Hard Money Lender. Residential and Commercial lending, no lender point options and no upfront lender fees. Clear matrices and guidelines.

All decisions, funds and processes in house. Hiring Wholesale AE's nationwide. www. athascapital.com

NEW

FundingEdge 830-331-4030 & 210-249-2111

FundingEdge is a correspondent for agricultural land & ranch financing and providing commercial real estate financing options through its network for private money and conventional programs.

NEW

GreenLake Real Estate Fund, LLC 310-462-4637

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!

Kennedy Funding

Specializing in nationwide fast, creative short-term bridge loans ranging in size from $1 million to more then $50 million. Loan commitments in 24 hours. Fast closings. Loans are available for note purchases, acquisitions, land development, construction, workouts, refinancing, bankruptcies and foreclosures.

800-342-8500

Windvest Corporation 877-285-0777

ZINC Financial 559-326-2509

Specializing in fix and flips, rehabs, income producing and rental investment properties throughout Southern CA. We lend on SFR residential and COMM property.

Simple application process with generous broker commissions. Professional service with funding in 7 days. Call us today for a free quote or visit us online www. windvestcorp.com Investment Rehab Lender. We are a direct lender for Fix and Flip loans in CA, AZ and NV. Funding in as little as 7 days. Easy online submission @ www.zincfinancial.net

MULTIFAMILY Apartment Bank 877-442-4003

Apartment Bank, a division of BofI Federal Bank (NASDAQ:BOFI), is a Nationwide Direct Portfolio Lender that has solidified its standing as a premier multifamily lender in the small balance lending space. Apartment Bank’s flexible approach is key to freeing borrowers and brokers from the typical headaches and hassles of small loan transactions. Loan amounts from $250,000 to $10,000,000. Visit http://www. apartmentbank.com

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

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October 2012

classifieds

Service Provider Classifieds Branch Opportunities NEW

American Pacific Mortgage 866-625-9352

Hometown Lenders 888-606-8066

Mountain West Financial 888-845-4530

Residential Finance Corporation 800-785-6277

Founded in 1996 by a group of Top Producing Loan Originators, American Pacific Mortgage has grown to become one of the leading retail mortgage banks in the nation. Partner today with a company that has the strength, resources and cutting edge tools to get you to the top and keep you there.

Our producers stay with us because they are supported and we don’t mess with their money. HomeTown Lenders is a debt-free, Full Eagle lender who believes in treating all employees and customers fairly. We take pride in being the best in the business.

Consistent. Reliable. Competitive. With over 20 years of experience in Retail Branching, Mountain West Financial opens doors to limitless opportunities.

At RFC we believe the status quo simply isn’t good enough. We’re doing retail branching a little bit differently. We start out with an award winning culture and take care of our customers, both internal and external, like family. With that basic premise met, everything else falls right into place. Partner with us!

Training & education NEW

Kaplan Real Estate Education 877-792-4473

MortgageCurrentcy.com 800-231-4787

Kaplan is the nation’s leading provider of licensing and exam prep courses. We offer the SAFE Licensing Course in the classroom and live online. To help you pass the SAFE Exam, we also offer exam prep courses in the classroom and OnDemand online.

Interpreting the complicated mortgage rules in plain language (Fannie, Freddie, FHA, VA, Compliance, Credit) that ONLY affect the loan origination side of the business. Help Desk. Rule Change Calendar. Automatic Face Book posts & Mortgage Talking Points™ for your real estate agents. Online e-zine published 2X month. Try for $1.

ADVERTISE YOUR NICHES HERE WITHIN

TheNicheReport.com

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classifieds

Technology The Mortgage Office 800-833-3343

The Mortgage Office™ is a powerful suite of lending solutions for private lenders.

With our comprehensive core loan servicing products and robust add-on products, you can custom build the most powerful and personalized mortgage software solution for your business. From Origination, through Loan Servicing, Mortgage Pools, Investor Access, ACH, email statements, and more. Your back office needs to be automated, and The Mortgage Office™ can help your business grow and expand without increasing your staff.

Byte Software 800-695-1008

Byte Software offers a complete mortgage solution from lead generation to selling loans on the secondary market enabling lenders to close more loans in less time with a SQL database, customization, enterprise scalability, compliance and security.

Calyx 800-362-2599

Affordable software that streamlines and optimizes all phases of the loan process – from loan marketing through closing.

DocMagic 800-649-1362

The largest dedicated loan document production company in the country, delivers a fusion of solutions guaranteed to meet today's complex loan document challenges.

title work & insurance

Entitle Direct 877-936-8485 or 877-9ENTITLE Linear Title & Closing 401-841-9991 Scott Bond Services 800-365-0101

Hundreds of mortgage professionals have saved their borrowers up to 35% or more on their title insurance by recommending Entitle Direct.

Linear Title & Closing, Ltd., is a recognized leader and national provider of Closing, REO, Title Insurance and Settlement Services. Our streamlined RESPA compliant process utilizes flexible software tools that are easily integrated with your system

A leader in providing surety license bonds, fidelity, and E&O to the mortgage industry nationwide including investor required Special Mortgage Bankers Bonds.

Offering a combination of expertise, service, value, and underwriting flexibility that’s second to none.

ADVERTISE YOUR NICHES HERE WITHIN

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October 2012

classifieds

marketing & lead Gen Best Rate Referrals 800-811-1402

Mailer Leads 866-783-4053 ext 14

Leader in FICO based lead generation, will help you increase your lead volume 150%.

We've taken our highly responsive Mailer Programs and incorporated Personal Websites (PURLs) and QR Codes.

Right Side Marketing

Providing exceptional marketing materials for Real Estate and Mortgage professionals since 1985

800-456-4395

NEW

Your mortgage marketing leader with many services available from Direct Mail & List Services, Telemarketing, Internet Leads, Mobile Marketing, and more.

Stoneybrook Publishing Inc 800-736-3632

Titan List & Mailing Services, Inc 800-544-8060

Monthly client newsletters proven to generate new loans from referrals and repeat business

Over 12 years of experience catering exclusively for the mortgage industry delivers consistent results from our turn-key campaigns. Our Pre-screened data, 24 hour turn around and custom pieces design continue to lead the industry for mortgage marketing efforts.

Appraisal & AMC NEW

United States Appraisals 866-562-0123

World-Class Service. Nationwide Coverage.

Discover Confidence in Your Appraisal Partner!

StreetLinks Lender Solutions 800-778-4920

Providing lenders with a comprehensive suite of valuation solutions, including full AMC services, self-managed appraisal software, appraisal review tools and robust servicing products.

ADVERTISE YOUR NICHES HERE WITHIN

TheNicheReport.com

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Advertiser DIRECTORY

American Pacific Mortgage Corporation stablished Retail Mortgage Bank, providing Managers and Originators cutting edge tools & resources www.apmortgage.com Melissa Arntzen 800-846-8159 Recruiting@apmortgage.com

Apartment Bank Apartment Bank, a division of BofI Federal Bank (NASDAQ:BOFI), is a Nationwide Direct Portfolio Lender that has solidified its standing as a premier multifamily lender in the small balance lending space. www.apartmentbank.com 877-442-4003 apartmentcustomerservice@ apartmentbank.com

Applied Business Software, Inc Loan Origination, Loan Servicing, and Mortgage Pool Software for Private Lenders.

Powerful, flexible, compliant, and easy to use. www.TheMortgageOffice.com 800-833-3343 sales@absnetwork.com 42

October 2012

Athas Capital Group, Inc. Direct Wholesale Hard Money Lender specializing in residential and commercial lending. www.athascapital.com Kevin O'Shaughnessy 877-877-1477 ext 777 Kevin@athascapital.com

BofI Federal Bank www.bofifederalbank.com 888-883-9672 LendingPartners@bofifederalbank.com

Best Rate Referrals Mortgage Marketing Professionals. www.bestratereferrals.com Raymond Bartreau 800-811-1402 raymond@bestratereferrals.com

Byte Software End-to-end Mortgage Loan Origination Software. www.bytesoftware.com 800-695-1008 sales@bytesoftware.com

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 800-649-1362

FundingEdge Commercial Real Estate Finance, Business Finance and Oil & Gas Royalty Loans.

830-331-4030 & 210-249-2111 cs@fundingedge.com

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

Advertiser DIRECTORY

Hometown Lenders Our producers stay because they are supported & appreciated! www.hometownbranch.com Scott Smith 888-606-8066 scott@htlenders.com

Icon Residential National Wholesale Lender offeringa full line of Conforming and FHA products. We offer personalized customer service where our client is our primary focus. www.iconwholesale.com

Kaplan Professional Kaplan helps busy professionals obtain in-demand certifications and designations that enable them to advance and succeed in their careers. Through live and online instruction, we help our customers gain an edge in the mortgage industry. www.kapmortgage.com 877‐792‐4473

Kennedy Funding Nationwide. Fast creative shortterm bridge loans. $1 million-$50 million +. Commitments in 24 hrs. www.kennedyfunding.com Edwin Urrego 800-342-8500 edwin@kennedyfunding.com

Linear Title & Closing Title Insurance & Settlement Services www.lineartitle.com Nick Liuzza 401-841-9991 nliuzza@lineartitle.com

Mailer Leads Lenders and Brokers who use our mailers are not only surviving -- they are thriving. www.MailerLeads.com 866-783-4053 ext 14

MortgageCurrentcy.com Interpreting the complicated mortgage rules in plain language.

800-231-4787

National Association of Realtors® The Voice for Real Estate®, is America’s largest trade association, representing over 1 million members involved in the residential and commercial real estate industries. realtor.org 800-874-6500

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

Residential Finance Corporation Producing at least $3mm a month? Partner with Us! Expanding Now with Successful Branch Managers. www.myprobranch.com Rick Pallo 800-785-6277 Rick.pallo@myrfc.com TheNicheReport.com

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Advertiser DIRECTORY

Right Side Marketing Marketing Materials for Mortgage Professionals. www.rightsidemarketing.com Jill Fleischman 800-456-4395 x10 jill@rightsidemarketing.com

Scott Bond Services A leader in providing surety license bonds, fidelity, and E&O to the mortgage industry nationwide. scottbondservices.com 800-365-0101 Cary McFadden cmcfadden.scottins.com

Stoneybrook Publishing Inc Monthly client newsletters proven to generate new loans from referrals and repeat business www.mortgage.stoneybrookpublishing.com 800-736-3632 44

October 2012

StreetLinks Lender Solutions StreetLinks offers leading valuation and servicing solutions driven by quality and service. www.streetlinks.com 800-778-4920 sales@streetlinks.com

Titan List & Mailing Services, Inc. Data provider, printing service & direct mail house. www.titanlists.com 800-544-8060 titanlms@bellsouth.net

United States Appraisals World-Class Service. Nationwide Coverage. Discover Confidence in Your Appraisal Partner! www.unitedstatesappraisals.com 866-562-0123 brads@unitedstatesappraisals. com

United Wholesale Mortgage Discover Lending Made Easy! Conventional, FHA, USDA, VA, Jumbo, HARP 2.0, and Correspondent Lines. www.UWM.com 800-981-8898 signup@uwm.com

Windvest Corporation Hard money lender, specializing in Rehab Loans. NMLS # 394407. www.windvestcorp.com Andre Jimenez John Ermin 877-285-0777 andre@windvestcorp.com john@windvestcorp.com

Zinc Financial, Inc. Investment Rehab Lender. www.zincfinancial.net Todd Pigott 559-326-2509 tpigott@zincfinancial.net

- continued from page 46

threatened to ruin the business. Last month a federal appeals court in New York allowed other charges against Grant Thornton to proceed: allegations that the accounting giant deliberately ignored signs of fraud at a company they were auditing.

Obviously, Grant Thornton denies that they were negligent, but the losses and fraud did take place on their watch and that causes us concern.

Homeowners have little faith in the banking system these days. Everyone knows a neighbor who is struggling with a mortgage. Unfortunately, just about everyone knows a friend or neighbor with a horror story of how they were treated by their lender and servicer ‌ toll-free hotlines that are not answered, missing loan paperwork, inconsistent advice and information when they do get through to a live person, and HAMP loan modification applications that are denied for no reason or simply "lost in the system."

For many homeowners, the national mortgage settlement comes too late. They have already lost their homes.

This is one of the few chances that the banking system has to improve its image and begin to clean up the mess they have created. We are skeptical of their ability to do so on their own. We hope, however, that Joseph Smith and the five newly appointed review firms will take their mission seriously and hold the industry accountable.

Time will tell.

Brian Mahany is a lawyer and partner at Mahany & Ertl, a boutique law firm that helps homeowners sue for and collect damages against lenders for fraud, illegal conduct or an improperly denied HAMP modification. He welcomes comments and questions. Brian can be reached through his law firm at brian@mahanyertl.com.

“The year I started doing the Lender Letter and the eWeekly Economic Update, my business DOUBLED. Thank you for your excellent products and service.�

See for yourself!

Steve Peterson Sierra Pacific Mortgage

rightsidemarketing.com ~ 800.456.4395

Accounting Firms to Monitor National Mortgage Settlement

by Brian Mahany

J

oseph Smith is a powerful guy. He is the monitor of the $25 billion national mortgage settlement hammered out by 49 states, the federal government, and several large lenders including our perennial "favorites," Bank of America, Wells Fargo, Citi and Chase. As part of the settlement, several major lenders promised to clean up their act and provide $25 billion dollars for homeowners. The pact has already had its fair share of bad press as some states have already made claims to the cash ... money that we think is better spent on distressed homeowners.

Obviously one man can't monitor compliance of a banking system this large and this broken. To assist in the efforts, Smith hired five accounting firms, Grant Thornton, Baker Tilly Virchow Krause, BKD, McGladrey LLP and Crowe Horwath. Much is riding on these firms to ensure that lenders really do improve their compliance efforts and provide meaningful relief to struggling homeowners.

We are a little nervous about the list of auditors. Just yesterday we wrote about Deloitte (one of the Big 4 accounting firms) and how they were implicated in covering up Standard

Chartered Bank's alleged illegal banking activities with Iran.

As we previously reported, Deloitte was hired in 2004 to monitor the bank. If the N.Y. banking superintendent is correct, they not only failed as monitors, they may have actively participated in a $250 billion cover up.

We are glad to see BKD and Baker Tilly on the list.

Both are medium-size firms with good reputations. Just like the big banks, we have not been too enamored with the big accounting firms.

Two of the firms, McGladrey LLP and Crowe Horwath, we do not know. That leaves Grant Thornton.

According to Wikipedia, they are the fifth largest accounting firm, putting them just behind the "Big 4." It's not size that turns us off – it’s conduct.

Here in Milwaukee, the business community was rocked a couple years ago when the CFO of Koss embezzled millions from the company's coffers. The business was left teetering on financial ruin. Koss shareholders say that Grant Thornton, the company's auditors, should have caught the fraud long before it - continued on page 45

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October 2012

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