TNR - November 2010

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Issue 040 November 2010 TheNicheReport.com

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How our society changed when we learned to turn lead into gold.

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CONTENTS

20

Issue 040

November 2010

NICHE REPORTS prime & FHA COMMERCIAL HARD MONEY & NON-PRIME ConStruction Service Providers

Securitization How our society changed when we learned to turn lead into gold.

Martin Andelman

pg 53 pg 53 pg 54 pg 54 pg 55

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

12 16

Seizing Control of Your Retirement Bernie Navarro President and founder, Benworth Capital Partners Plan by investing in mortgages: Part IV.

What Happens to the Last Guy? Chris Jones branch manager, City 1st Mortgage Services Turn the lights off on the way out.

18 36

9 Marketing Mistakes molly dowdy evp of marketing a la mode, MORTGAGE SOLUTIONS DIV. Originators can no longer afford to neglect marketing.

Online Lead Generation Dennis Yu ceo blitzlocal.com Mortgage brokers multiply their online presence in 90 minutes.

6

62

November 2010

EDITORIAL / CONTENT MANAGER Kristen Moser kristen@thenichereport.com

Bringing up the Rear Martin Andelman mandelman matters ml-implode.com The bank's robo-signer.

DEPARTMENTS

09 10 30 39 43 44 48 58

from the editor's desk LETTERS TO THE EDITOR shhh ... Frank & BRian speak techspot THE VOICE OF HOUSING RULES & REGULATIONS TIP OF THE MONTH LENDER & RESOURCE DIRECTORY

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 Karen Deis Molly Dowdy Frank Garay Chris Jones Stewart Mednick Bernie Navarro Rick Roque Jim Russell Brian Stevens Dennis Yu

NOW IN CANADA!

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You Don’t Oer Credit Repair?

Published monthly by BODA Publishing, LLC PO Box 494, Bentonville, AR 72712 Phone: 866.964.2695 Fax: 703.991.2362 Email: info@thenichereport.com www.TheNicheReport.com

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EDITORIALS / ARTICLES To submit an article for consideration in The Niche Report, please send an email to stewart@thenichereport.com or call 866.964.2695. We are interested in original writings relevant to mortgage brokers and other real estate finance professionals.

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FROM THE EDITOR'S DESK

The Niche Report is 40!

Not years old, but issues released. This is huge…HUGE! Over three years old and still cranking out quality print during the financial industry’s most challenging period since the origination of the Glass-Steagall Act of 1933. No other magazine or e-zine can make this claim. We are actually growing, to boot! This issue is a ginormous 64 pages cover to cover; the largest The Niche Report has experienced.

All because of readers like you… and George in the next cubical over... and Susan who originates for the “other broker….”

Yep, we are on a roll. However, the banking industry is not. Bad mortgages seem to be receiving more press in the last three years than Brittany Spears, or “Brangelina.” Banks have failed, brokerages have closed, and if foreclosures were a company on the stock exchange, its stock would be hotter than Microsoft in the 1990s.

Yes, the Glass-Steagall Act was abolished when some provisions of the Act, such as Regulation Q, which allowed the Federal Reserve to regulate interest rates in savings accounts, were repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980. Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999, by the Gramm–Leach–Bliley Act. The Foreclosure Protection Act was enacted in… wait, there is none.

The repeal of the Glass–Steagall Act effectively removed the separation that previously existed between Wall Street investment banks and depository banks, “... exacerbating the damage caused by the collapse of the subprime mortgage market that led to the financial crisis of 2007 to the present….”

The potential to make enormous profits, trading mortgage-backed securities with artificially high ratings, encouraged banks to take on otherwise intolerable risk in the form of bad loans. I don’t know much of the insider stuff about this, but if you read Martin Andelman’s feature article on securitization, it will become much more understandable.

Martin continues on his ‘slam-fest’ of the banking industry with a very enlightening Bringing up the Rear where the concept of ‘robo-signing’ is introduced… you got to read it to believe it. I have even heard say, that judges may consider some mortgages invalid because of artificial signatures? What?

Molly Dowdy, EVP of the omniscient company a la mode, writes about marketing mistakes and how to correct them… a must read!

Bernie Navarro continues his series on retirement with part four.

My personal favorite for this month is Chris Jones’ “What Happens to the Last Guy?” The usual cast of characters including the brilliant Dennis Yu, Frank and Brian, Karen Deis and Rick Roque all shine as well in this landmark issue.

Don’t forget to have your fill of my “Tip of the Month” also; I think it is my best column yet! So get ‘tipped-off!’

Stewart Mednick

Official

MEMBER

TheNicheReport.com

9

Letters to the editor Be A Celebrity Expert, Issue 038, Sept 2010 I read Karen Deis’ article in The Niche Report and discussed it at our office meeting today. I have always felt that she brings great value to our industry and think she is a great leader. I just wanted you to know that we are listening and supporting her.

the reins of something this important. The protected and enclosed environment of the college elite does not necessarily transfer into common sense or practicality.

Bill West Amtrust Mortgage

Also, wanted you to know that I have always paid attention to her messaging and appreciate her contribution to our industry.

Cindy Ertman National Sales Manager l RPM Mortgage

Bringing Up The Rear: Senator Chris Dodd with Kudos to Elizabeth Warren, Issue 038, Sept 2010 Bravo Martin. Where and how do we cast our vote and weight for her?

Bringing Up The Rear: Me, Martin Andelman, Issue 037, Aug 2010 I just wanted to say what a great article you wrote in the August edition. Your comments hit home to many on my staff.

Anyone over the age of 40 could not stop laughing. Not sure if you are a regular contributor to the magazine, but I will look for your articles each month.

John J. Doerr

Steve Carrigan

***

*** I just read your article in this month’s issue of The Niche Report and certainly, Dodd deserves more than his fair share of derision. However, your applause for Elizabeth Warren may be undeserved. You state that Warren wants to protect the consumers and suggest she is anti-bank. An officer of the company I work for has related some of her anti-mortgage broker remarks.

Apparently, she does not see a place for the mortgage broker.

The Mortgage Broker has been very consumer friendly.

Granted; some have helped to shoot ourselves in the foot, but those are being weeded out. Unfortunately, the same thing can not be said at the banking level. I would be concerned about her taking

Awesome!

Terry Penn *** Just wanted to drop you a quick note to let you know how much I enjoy the “Bringing up the rear” column. It’s obvious that Martin writes straight from the heart – and with a lot of humor.

I always enjoy his columns, and I just wanted to say thanks for making them so “real life” and “human”. Thanks again.

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.

10

November 2010

Kim Cook North Georgia Homes, Inc.

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The subscription rate will then be $47.95 (12 issues/12 months)

• A Facebook Business Page by Blitzlocal ($199 value) Attract Realtor partners or potential local borrowers to fan your page.

We’ll be providing Facebook ad dollars later in the year! First 5,000 subscribers only.

• The Super Star Audio Interviews ($47 per month value) ALL subscribers get access to interviews of high performing loan officers by Mortgage Marketing Animals marketing guru Carl White.

* Use discount code tnr1999 to receive discount.