2 - National Mortgage Professional Magazine

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O NOVEMBER 2010
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MORTGAGE PROFESSIONAL MAGAZINE
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Mortgage PROFESSIONAL
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MAGAZINE
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Phone: (630) 916-7720 O Fax: (630) 396-3503
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Illinois AG Madigan Files Legislation to Reform the
Foreclosure Process to Protect Homeowners
Illinois Attorney General Lisa Madigan has filed legislation designed to reform the foreclosure process to protect homeowners. Madigan’s legislation is the first of its kind in the
country to address revelations that major banks and mortgage giants recklessly “robosigned” foreclosure fillings across the country. The bill would significantly tighten the
requirements for affidavits filed in foreclosure proceedings to ensure their accuracy.
Sponsors of the bill during the General Assembly’s fall veto session are state
Sen. Jacqueline Collins, and state Reps. Marlow H. Colvin and Mary Flowers, all of
whom have worked closely with Madigan’s office in recent years to increase the
protections for Illinois families facing foreclosure.
“Too often, Illinois families are struggling to pay their mortgages because banks
put them into risky loans that they did not understand and could never afford.
Now, we must make sure that banks are not violating the law as they try to take
these families’ homes away,” Attorney General Madigan said. “This legislation is
designed to ensure that banks and loan servicers cannot cut corners or ignore
homeowners’ rights in the foreclosure process.”
The legislation was prompted after major loan servicers across the country,
namely GMAC/Ally, Bank of America and JPMorgan Chase, admitted their employees signed inaccurate foreclosure documents in court. These employees may have
approved thousands of foreclosures without personal knowledge of the facts
involved and without verifying underlying loan information.
“As Illinoisans lose their homes, we have to continue to fight to put the law on their
side so they don’t once again become the victims of fiscal gluttony,” said Sen. Collins.
The bill would ensure the integrity of foreclosure documents filed and that
lenders are complying with the requirements of federal loan modification programs. It would also make sure each homeowner knows the amount they owe,
who owns their loan, the terms of their original loan and whom they can contact.
Specifically, the proposed legislation would:
description of how the person who signed the affidavit has personal knowledge of the facts, including what he or she did to verify that the amount owed
is accurate.
O Require that banks verify in writing all efforts they have undertaken to keep
the homeowner in the home, including loan modification efforts.
O Require that banks provide a detailed summary of the borrowers’ payments to
ensure the borrowers know why the foreclosure is happening and can contest
the foreclosure if the banks’ payment history is inaccurate.
O Require that a bank prove that it holds the loan and has the right to foreclose.
“This legislation continues our aggressive work to implement laws that provide
homeowners with assistance while holding lenders accountable,” said Rep. Colvin.
The legislation is part of the Attorney General’s response to the recent foreclosure document scandal. Madigan also has asked Washington lawmakers to support the re-introduction of legislation drafted by U.S. Sen. Richard Durbin, D-Ill.,
to permit bankruptcy court judges to reduce principal amounts on mortgages and
thereby save homes.
“If banks and mortgage companies cannot produce the proper paperwork to
verify a foreclosure needs to take place, they shouldn’t be kicking Illinois homeowners out of their homes in the first place,” said Rep. Flowers. “It is up to the
state, with this legislation, to step in to protect these vulnerable residents.”
Immediately following reports questioning the integrity of foreclosures filed
nationwide, the Attorney General issued letters to GMAC/Ally, Bank of America
and JPMorgan Chase along with 23 other major loan servicers who work in
Illinois demanding a halt to all pending foreclosures in Illinois, including postforeclosure sales and evictions, unless they were able to demonstrate the filings
were accurate.
O Ensure affidavits filed as part of the foreclosure process contain a detailed
continued on page il4
IL
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ag madigan files legislation
continued from page il3
Attorney General Madigan, along with the 49 other state attorneys general and
37 state bank and mortgage regulators, is also continuing a multi-state probe into
the servicers and foreclosures filed in courts across the country. In Illinois, the filing of false court documents could be a violation of the state’s Consumer Fraud
Act and other laws.
AG Madigan has been at the forefront of protecting Illinois homeowners during
the mortgage foreclosure crisis and holding Wall Street banks accountable. In
2008, she led a nationwide $8.7 billion settlement with Countrywide over its
predatory lending practices. The Attorney General has also filed suit against both
Wells Fargo and Countrywide alleging widespread discrimination against African
American and Latino borrowers, causing them to pay disproportionately more for
their mortgages than other borrowers.
In Springfield, Ill., AG Madigan played a principal role in working to pass the
High Risk Home Loan Act of 2003 and drafted the Mortgage Rescue Fraud Act of
2006, which was designed to deter scam artists from preying on vulnerable homeowners on the verge of foreclosure. The Attorney General also initiated and drafted the Illinois Homeownership Protection Act, a law that took effect in 2008 to
tighten controls on brokers and lenders to prevent consumers from being unwittingly locked into questionable loan terms. In 2008, Madigan also initiated the
Illinois Homeowners’ Rights Act.
For more information, visit www.IllinoisAttorneyGeneral.gov.
Illinois AG Madigan Charges
Omega Business Center With
Foreclosure Rescue Fraud
IL
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Headlines and breaking news from
NationalMortgageProfessional.com.
Headlines and blogs from
around the web.
Illinois Attorney General Lisa Madigan has filed a lawsuit in Cook County Circuit
Court against three men and their businesses, alleging repeated instances of
fraudulently soliciting consumers for mortgage and credit card debt relief in violation of the state’s Mortgage Rescue Fraud and Credit Services Organization Acts.
Madigan’s lawsuit charges the Chicago-based Omega Business Center was an
umbrella organization for several entities that solicited consumers through print
and radio advertising in the Polish community to reduce their mortgages and
bring down credit card debt, but did not deliver on the promised services. The
lawsuit alleges the organization charged consumers upfront fees for services that
were never provided, and never issued refunds to customers who canceled their
contracts.
Also named as defendants in the lawsuit were Michael Borowiak of Niles, Ill.,
president of Omega Tax and Accounting and manager of Omega Investment and
Development; Jorge Paredes of Chicago, principal of Wall Street Inc.; and Jay
Fortier of Oak Park, Ill., manager of Habulst Asset Management LLC. These businesses, along with others registered with the state, all worked under the Omega
Business Center, claiming to offer mortgage and credit card debt reduction assistance, the lawsuit states.
“Homeowners should be wary of any debt-assistance business that requires
upfront fees for their services,” Attorney General Madigan said. “Mortgage rescue
scam artists should be aware that my office aggressively investigates these allegations and will pursue those who prey on unsuspecting homeowners.”
The Attorney General received nearly a dozen complaints from consumers living in Cook, Lake and DuPage Counties before filing her lawsuit. Those consumers together have lost $300,000 as a result of entering into contracts with
these companies.
Madigan is asking the court to prohibit the defendants from engaging in the
businesses of mortgage foreclosure rescue or credit services and from future violations of the Consumer Fraud Act. The suit also asks the court to void all contracts
between the defendants and Illinois consumers made through these unlawful
practices and provide restitution for consumers. The action also asks the court to
order the defendants to pay a $50,000 civil penalty per count, additional penalties of $50,000 for each violation found to have been committed with the intent
to defraud, as well as $10,000 per violation found to have been committed against
a senior 65 years or older. The lawsuit also asks the court to require the defendants to pay the costs of the investigation and prosecution of the case.
For more information, visit www.illinoisattorneygeneral.gov.
IAMP’s Professional Designees
Certified Mortgage Consultants
Kenneth J. Amstutz, CMC, CRMS
Monina Canete, CMC, CRMS
Angelo Cusinato, CMC, CRMS
Dorothy P. Desmond, CMC, CRMS
Joseph Diamond, CMC
Charles E. Eck, CMC
Adeniko Fasanya, CMC
Carol Gardner, CMC, CRMS
Scott Guzik, CMC
Jose Martinez, CMC
Terry E. Meland, CMC, CRMS
Robert C. Moos, CMC, CRMS
Michael O’Neill, CMC
Andrew Palomo, CMC, CRMS
Andrew B. Ramir, CMC, CRMS
Shelly Straim, CMC
Darren D. Weisberg, CMC
Eric White, CMC
Kirstan A. Wilkinson, CMC, CRMS
Certified Residential Mortgage
Specialists
Julie K. Altenbernd, CRMS
Kenneth J. Amstutz, CMC, CRMS
Gil Antokal, CRMS
Elizabeth A. Aponte, CRMS
Brian Augustine, CRMS
Leticia Avina, CRMS
Oleg Basov, CRMS
Michael Belmonte, CRMS
Robert M. Berman, CRMS
Terry Bivins, CRMS
Monica L. Boatman, CRMS
Robert Brown, CRMS
Travis Brown, CRMS
Jackie Bulava, CRMS
Brent R. Burns, CRMS
James A. Campanella, CRMS
Steve Campanella, CRMS
Monina Canete, CMC, CRMS
Ronald Chilman Jr., CRMS
Kurt A. Clements, CRMS
Michael Cohen, CRMS
Thomas D’Aprile, CRMS
Laura C. Dantuma, CRMS
John Dedes, CRMS
David W. Dehaan, CRMS
John DeJulio, CRMS
Dorothy P. Desmond, CMC, CRMS
Brian Dixon, CRMS
Phillip Downes, CRMS
Christopher Eastman, CRMS
Robert Enright, CRMS
Andrew K. Fattori, CRMS
Michelle Favia, CRMS
Gregory Getz, CRMS
Jorge G. Gomez, CRMS
Keith E. Gordon, CRMS
Paul Grabstanowicz, CRMS
William Grant, CRMS
Jason Howze, CRMS
Lee S. Ioerger, CRMS
Dave Ischkum, CRMS
Nicholas Ischkum, CRMS
Thomas Ischkum, CRMS
R.J. Johnson, CRMS
Christoph Jones, CRMS
Robert J. Kenney, CRMS
Wendy Kew, CRMS
Janine Klich-Jensen, CRMS
MariAnn Kostakes, CRMS
Dylan Kramer, CRMS
Tom Lavallee, CRMS
Marki D. Lemons, CRMS
Andrew Levin, CRMS
Steven M. Levitt, CRMS
Lynn Listhartke, CRMS
Solomon Maman, CRMS
Roger McGuire Jr., CRMS
Bill McNamee, CRMS
Robert C. Moos, CMC, CRMS
Dave Noda, CRMS
James Nuesslein, CRMS
Rick J. Palandri, CRMS
Andrew Palomo, CMC, CRMS
Jim Passi, CRMS
Terry Pogofsky, CRMS
Andrew Ramir, CMC, CRMS
Charles Rizzo, CRMS
Fern Russell, CRMS
Judith Santefort, CRMS
Steve A. Schwartz, CRMS
Phillip Siebert, CRMS
Scott Siegel, CRMS
Sue Stapp, CRMS
Tory Tarsitano, CRMS
Jeff Thoreson, CRMS
Catherine L. Tomasik, CRMS
Dave Vance, CRMS
Karen Van Deusen, CRMS
Mari Vingua, CRMS
Pat Vlasis, CRMS
Thomas O. Walker, CRMS
Kirstan A. Wilkinson, CMC, CRMS
Prince Williams Jr., CRMS
Al Wood, CRMS
Mark Zarycki, CRMS
NAMB Lending Integrity Seal of
Approval Members
Alex Berson
Kathleen Calumet
James A. Campanella, CRMS
Theresa Carley-Brown
John Dedes, CRMS
Dorothy Desmond, CMC, CRMS
James Dobbs
Charles E. Eck, CMC
Susan Eck
Scott Ellis
Jeri Lynn Fox
Jamie Franz
Mark Fritsch
Jorge Gomez, CRMS
Michael Gordon
Ronald Graf
William Grant, CRMS
Zak Henderson
David Hochberg
Ken Idstein
Vincent Kalamaras
Brent Kenyon
Pamela Kohn
Kevin Koykar
Barbara Kuczaj
Larry Lettow
Juan Lopez
Paul Lueken
John Meyer
Robert Moos, CMC, CRMS
Matthew O’Brien
Scott Rausch
Leonard Schindler
Steve A. Schwartz, CRMS
Jeffrey Stec
Amiel Steuerman
Jason Stichauf
Andrew Surma
Kimberly Taylor
Helene Toal
Anthony Tutaj
Henry Tutaj
Greg Uszko
Aurelio Valdez Jr.
Dave Vance, CRMS
Matthew Voss
Eric White, CMC
Prince Williams Jr., CRMS
Kevin Williamson
Gretchen Wnukowki
Jodi York-Caraballo
IL
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Diamond sponsor
1st Advantage Mortgage/1 AM Wholesale
Platinum sponsor
Merton G. Silbar Public Relations
Gold sponsors
Mortgage Insurance Agency Ltd.
Old Republic National Title
Insurance Company
Radian Guaranty Inc.
RMIC
Sierra Pacific Mortgage
Stearns Lending
Stewart Title Company
SunTrust Mortgage
Ticor Title Insurance
Wells Fargo Home Mortgage
O NOVEMBER 2010
Bank of Ann Arbor
Charter Title LLC
City Suburban Title
Contemporary Services Inc.
Document Express Inc.
EverBank
Fifth Third Mortgage
Franklin American Mortgage
Company
Gomberg, Sharfman, Gold & Ostler PC
Greater Illinois Title Company
Information Services of Illinois LLC
2010
Emerald sponsor
Sponsors
Mortgage Services III LLC
ILLINOIS ASSOCIATION OF MORTGAGE PROFESSIONALS
POLITICAL ACTION
COMMITTEE
Protecting the Mortgage Broker Industry
IAMP 2010 PAC PIN MEMBERS
Platinum members
Victoria Ciardelli III ....................................Guaranteed Rate Inc. ..........1 year
Jorge G. Gomez ......................................1st Advantage Mortgage ..........1 year
David Hochberg ..........................................Townstone Financial ..........4 years
William M. White..................................Elite Mortgage Group Inc. ..........1 year
Kevin A. Williamson ................................Compass Mortgage Inc...........4 years
Gold Members
Jeri Lynn Fox ......................................USA Mortgage Corporation..........4 years
Carol Gardner ............................................Lending Network Inc. ..........1 year
William Grant........................................Kenilworth Financial Inc...........5 years
Jerry Kussy....................................................Profile Mortgage LLC..........2 years
Paul Lueken............................................1st Advantage Mortgage..........9 years
Kerry A. Pastore..........American Foundations MortgageBanc Inc. ........8 years
Robert C. Perry ................................Midwest Home Funding LLC ..........1 year
Phillip Siebert ......................................GSI Mortgage Corporation........15 years
Donald C. Starks ..........................D.C. Starks Mortgage Associates........13 years
Marve Stockert ......................................................Caddie Master ........19 years
Shelly Straim ................................................One on One Funding........14 years
Pat Vlasis ............................American Way Financial Services Inc. ........8 years
IL
6
Silver members
Stephanie Angeli ..................................Mortgage Services III Inc. ........7 years
Robert Carr ......................................A & N Mortgage Services Inc. ..........1 year
Scott Cheffer ..............................Able Title Insurance Agency Inc. ..........1 year
Edmund K. Conarchy ................................Cherry Creek Mortgage..........2 years
Jeffrey S. Fishman............................................Perl Mortgage Inc...........2 years
Tim Galligan ..........................................1st Advantage Mortgage..........5 years
Larry Gold..........................Gomberg, Sharfman, Gold & Ostler PC ......14 years
Theresa M. Guerriero..............CU/America Financial Services Inc. ........6 years
Ron Lapins........................................Great Lakes Home Mortgage ........2 years
Al Lomax ..........................................Great Lakes Home Mortgage ........2 years
Aldo Naris ......................................United Security Mortgage Inc. ........7 years
Mark D. Norris ................................................City Suburban Title ..........1 year
Craig Shaffer ........................................Craig Shaffer & Associates........14 years
Jim Svehla ......................................................Point Financial LLC ..........1 year
Robert Sztapka..................................1st Rate Mortgage Solutions ..........1 year
Christopher Zabat ......................................Pacific One Mortgage..........2 years
Bronze Members
Nick S. Agliato ........................................1st Advantage Mortgage..........4 years
Holly Agne ..............................................1st Advantage Mortgage..........2 years
Laura A. Allen..................................................Prospect Mortgage ..........6 years
Angela Allen ..............................................Lending Exchange Inc. ..........1 year
Griselda Anderson ..................................1st Advantage Mortgage ..........1 year
Gil Antokal..............................................1st Advantage Mortgage..........7 years
Jason Antol ............................................1st Advantage Mortgage ..........1 year
Leticia Avina ..........................................1st Advantage Mortgage ..........1 year
Bruce E. Bangert ............................State Street Mortgage & Loan ..........1 year
Carolyn Barnes ..............American Dream Mortgage Corporation ..........1 year
Karth A. Barr ............................................Asset Capital Mortgage ..........1 year
Margaret Basic........................................1st Advantage Mortgage..........3 years
John Bloss ..............................................1st Advantage Mortgage ..........1 year
Michelle Bobart ................................................Guaranteed Rate ..........1 year
Ted Breden..............................................................................................2 years
Mike Brinkman ..........................................................Burnet Title ..........1 year
Terrance Buckley ....................................1st Advantage Mortgage ..........1 year
Kevin Bufe ..............................................1st Advantage Mortgage ..........1 year
Bruce Bufe ..........................................Key Mortgage Services Inc. ........2 years
Mark Cadagin..........................................1st Advantage Mortgage..........4 years
Kathleen Calumet ............................A & N Mortgage Services Inc. ..........1 year
Kathy Cannizzo............................................Equity Plus Mortgage ..........1 year
Teresa Carley-Brown ..........Cherry Creek Mortgage Company Inc. ..........1 year
Fred Carli ................................................1st Advantage Mortgage..........2 years
Frank Catalano ................................Gateway Funding Diversified ..........1 year
Ann Cherek ............................................1st Advantage Mortgage ..........1 year
Robert G. Click ........................................1st Advantage Mortgage ..........1 year
Anita Clinton......................................Legend Mortgage Company ..........1 year
Edmund K. Conarchy..........Cherry Creek Mortgage Company Inc. ..........1 year
Charlie Cross ..........................................1st Advantage Mortgage ..........1 year
John Dedes ......................................................Perl Mortgage Inc...........2 years
John Dennehy ..................................Integrity First Mortgage Inc. ..........1 year
Dorothy Desmond ..................................1st Advantage Mortgage........13 years
Lee Diamond ..........................................1st Advantage Mortgage ..........1 year
Jill Diethelm ..........................................1st Advantage Mortgage..........4 years
Brian Dixon......................................................Perl Mortgage Inc. ..........1 year
Jim Donato ............................................1st Advantage Mortgage..........2 years
Rose Anne Donzelli ................................1st Advantage Mortgage ..........1 year
Stephan Egan ..................................Mortgage Financial Advisors..........3 years
Mike Emond ..................................Mortgage Market Corporation..........2 years
Carole Fagan ............................................Harbor Point Mortgage ..........1 year
Matthew Ferguson..................................Northside Mortgage Inc. ..........1 year
Michael Flores ........................................1st Advantage Mortgage ..........1 year
Jose A. Flores........................................Welcome Home Mortgage ..........1 year
Renee Foley ............................................1st Advantage Mortgage ..........1 year
Joe Franzese ..............................................................CU/America............1 year
Andrea Garcia ........................................1st Advantage Mortgage ..........1 year
Tim Gatz ................................................1st Advantage Mortgage..........2 years
John C. Gillett ..........................Barrington Mortgage Corporation ..........1 year
Thomas L. Gobeli....................................1st Advantage Mortgage..........4 years
Matthew Gorman ................First Mortgage Resource Corporation ..........1 year
Paul Grabstanowicz ..................................Elite National Training..........6 years
Mark Grego ............................................1st Advantage Mortgage..........6 years
Courtney Gross........................................1st Advantage Mortgage..........4 years
Karen A. Gudmundson ..........................1st Advantage Mortgage ..........1 year
Todd Hartkeen ....................................................Key Mortgage IL ..........1 year
Michelle Henry ................................................ABI Mortgage Inc...........2 years
Carrie Hintz ........Cherry Creek Mortgage Mortgage Company Inc. ........2 years
Keith Hoffman ........................................1st Advantage Mortgage..........7 years
Matthew Hoffman ..................................1st Advantage Mortgage ..........1 year
Dennis R. Hutera ................................RDS Mortgage Corporation..........2 years
Thania Imbordino ....................................................................................1 year
Chris Ingraffia ........................................1st Advantage Mortgage ..........1 year
Marcus D. Jefferson ............................................Envoy Mortgage ..........1 year
Brenda Johnson ......................................1st Advantage Mortgage..........4 years
Elaine Kallay ..........................................1st Advantage Mortgage ..........1 year
Bessie Joy Kaufhold................Keystone Mortgage Emporium Inc. ..........1 year
Matthew Kennedy ..................................1st Advantage Mortgage ..........1 year
Kristen Klauke ........................................1st Advantage Mortgage ..........1 year
Jeff Koch ................................................1st Advantage Mortgage..........2 years
Kevin Koykar ..........................................1st Advantage Mortgage..........3 years
Adam Kriticos ........................................1st Advantage Mortgage ..........1 year
James J. Kypuros ....................................1st Advantage Mortgage..........2 years
Jason LaBelle ..........................................1st Advantage Mortgage ..........1 year
Elizabeth LaGasse ........................Expert Mortgage Associates Inc. ..........1 year
Cissy Larkin ........................................................Homestate Bank ..........1 year
Chris Larkin ......................................................Netmore America ..........1 year
Jill Lauchner ..........................................1st Advantage Mortgage..........3 years
Jeff Lawson ......................................Allegiance Financial Services ..........1 year
Jannis Leasure ........................................1st Advantage Mortgage ..........1 year
Hai Jin Lee ..............................................1st Advantage Mortgage ..........1 year
Larry Lettow ....................................Pacor Mortgage Corporation..........2 years
Ed Lewakowski........................................1st Advantage Mortgage..........2 years
Jeffrey M. Lezak ..............................................Perl Mortgage Inc. ..........1 year
Nedla Liggett ..................................State Street Mortgage & Loan ..........1 year
Dan Link ..................................Barrington Mortgage Corporation..........2 years
Thomas Lynch ........................................1st Advantage Mortgage ..........1 year
Terry Maddrell ..................................................PHH Home Loans........10 years
Jeff Magee ....................................Mortgage Resource Group Inc. ........2 years
Jan Mandel ............................................Wazowski & Sullivan Inc. ..........1 year
Aurel Maranda........................................1st Advantage Mortgage ..........1 year
Carole Martin ..............................Law Title Insurance Agency Inc. ..........1 year
Salwa Matarieh ............................Premier Mortgage Services Inc. ........5 years
James McConnell ....................................1st Advantage Mortgage ..........1 year
Bill McGloon ..................................Mortgage Market Corporation..........2 years
Roger McGuire..................................Mid American Mortgage Inc. ..........1 year
Cherie McKeage ......................................1st Advantage Mortgage ..........1 year
Bill McNamee........................Pinnacle Home Mortgage Company ..........1 year
Jack Mecher ............................................1st Advantage Mortgage..........4 years
Gary Meyer..............................................Franklin Home Funding ..........1 year
Marlene Miciunas ..................................1st Advantage Mortgage..........2 years
Robert G. Migasi ....................................1st Advantage Mortgage..........2 years
Matthew Mikhail ....................................1st Advantage Mortgage..........2 years
Jeffrey S. Mills ........................................1st Advantage Mortgage..........2 years
Laura Mizzi ..................................................Mortgage Services III ..........1 year
Chi Moy ..................................................1st Advantage Mortgage ..........1 year
IAMPPAC
Maria Munoz ..........................................1st Advantage Mortgage ..........1 year
Kimberly Murphy....................................1st Advantage Mortgage..........4 years
Mark Newton ..................................................Perl Mortgage Inc. ..........1 year
John Noyes..............................................1st Advantage Mortgage ..........1 year
David O’Connor ......................................1st Advantage Mortgage..........6 years
Patricia Olinger ......................................1st Advantage Mortgage ..........1 year
Mary Ellen O’Rourke ..............................1st Advantage Mortgage..........2 years
Jerry Ortega ............................................1st Advantage Mortgage ..........1 year
Adam D. Parks ......................................................ACS Processing ..........1 year
Bob Paroski ............................................1st Advantage Mortgage ..........1 year
Kristin Patras ......................................Key Mortgage Services Inc. ..........1 year
John Piazza ............................................1st Advantage Mortgage..........2 years
Terry Pogofsky ................................................Perl Mortgage Inc...........2 years
Scott Pohl ..............................................1st Advantage Mortgage..........2 years
Stephanie Raderstorf ................Woodfield Planning Corporation ..........1 year
Demetra Raschillo ..................................1st Advantage Mortgage ..........1 year
Scott R. Rausch ......................................1st Advantage Mortgage..........4 years
Anthony G. Reda ....................................1st Advantage Mortgage..........6 years
Mike Redding..........................................1st Advantage Mortgage ..........1 year
Jeffrey Reichenbach................................1st Advantage Mortgage..........2 years
Lynda W. Reilly ..................................Lynmar Lending Group Inc. ........2 years
Daniel Retzinger ....................................1st Advantage Mortgage..........4 years
Victoria Rolland ..............................................Top Flite Financial ..........1 year
Benito Rosales Jr. ............................Aspen Mortgage Corporation..........2 years
Louise Rose ................................................ELB Mortgage Brokers ..........1 year
Amy Rosenblum ............................................Draper and Kramer ..........1 year
Jannis M. Ross-Shannon ..................................Top Flite Financial ..........1 year
David Rowinski ......................................1st Advantage Mortgage..........2 years
Jim Rubel................................................1st Advantage Mortgage ..........1 year
Kimberly Ruhlander ........................................Perl Mortgage Inc. ..........1 year
Todd Rutherford ....................................1st Advantage Mortgage..........4 years
Suren Sampat ........................................1st Advantage Mortgage..........3 years
Christopher Schejbal ............................Partners in Mortgage Inc. ..........1 year
Len Schindler..............American Foundations MortgageBanc Inc. ........5 years
Steve A. Schwartz ....................................Old Oaks Mortgage Inc. ........4 years
Thomas Schweighardt ............................1st Advantage Mortgage..........3 years
Linus Schwemer......................................1st Advantage Mortgage..........2 years
Pamela J. Sheldon ....................Great Lakes Home Mortgage Inc. ..........1 year
Cynthia Shugart ......................................1st Advantage Mortgage..........2 years
Rick Sigerich ..........................................1st Advantage Mortgage ..........1 year
Mark Silverstein ......................................1st Advantage Mortgage ..........1 year
John C. Silvestri ......................................................................................2 years
Gurpreet Singh ................................................Statewide Lending ..........1 year
Niccosta Spigutz ......................................CF Funding Corporation ..........1 year
Brett Stefanski ........................................1st Advantage Mortgage..........3 years
Amiel Steuerman ..........................Cypress Mortgage Corporation..........2 years
Edward Stevens ......................................1st Advantage Mortgage ..........1 year
Jason Stichauf ..................................................Perl Mortgage Inc...........2 years
Suzanne tiefel ........................................1st Advantage Mortgage..........3 years
Robert Szarmach ....................................1st Advantage Mortgage ..........1 year
Bill Tan ......................................LA Worldwide Mort Corporation ..........1 year
Michael J. Teppen ..........................Milestone Mortgage Solutions ..........1 year
Sally Thomas ....................................................PHH Home Loans..........2 years
Darnisha Thompson ........................................Top Flite Financial ..........1 year
Michael Tirio ....................................................Axis Bancorp Inc. ..........1 year
James Trausche ......................................1st Advantage Mortgage ..........1 year
Frederick Turk ........................................1st Advantage Mortgage..........2 years
Michael Turza ........................................1st Advantage Mortgage..........2 years
Bonnie Vasilion ......................................1st Advantage Mortgage..........4 years
Jacqueline Vincenzo ............American Fidelity Mortgage Services ..........1 year
Michael Vrba ............................................Cherry Creek Mortgage ..........1 year
Debra Waks ............................................1st Advantage Mortgage..........4 years
Susan Weinberg ......................................1st Advantage Mortgage..........4 years
Scott Weinstein ......................................1st Advantage Mortgage ..........1 year
Eric White ..............................................1st Advantage Mortgage ..........1 year
Thomas Whooley ......................................Wisdom Financial Inc. ..........1 year
Marcia Wilson ..................................................Perl Mortgage Inc. ..........1 year
Al Wood ......................................Biltmore Financial Bancorp Inc. ........2 years
Roger Wooten ..............................................Roger E. Wooten CPA ..........1 year
Yolanda Ybarra ......................................1st Advantage Mortgage ..........1 year
Dolores Zimmerman ..............................1st Advantage Mortgage..........2 years
350 W. 22nd St. #104, Lombard, IL 60148 ■ Phone: (630) 916-7720 ■ Fax: (630) 396-3501 ■ Web site: www.iamp.biz
IL
7
O NOVEMBER 2010
Exhibitors and Sponsors
www.NAMBWEST.com
Join the
2010 NAMB/WEST Conference
IL
8
December 4-6, 2010 at the
MGM Grand Las Vegas!
Visit www.NAMBWEST.com
for updates.
Exhibitors will receive a
complimentary ad in the
December issue of the
National Mortgage Professional
For more details on Exhibiting and Sponsorship,
please contact Kinsley at 303-798-3664 or
[email protected]
A Commentary on the Transfer of Mortgage Loans to
RBMS Securitization Trusts By Stephen Kudenholdt and
Stephen F.J. Ornstein
The Secondary Market Overview: The New Financial
Services Law … Long-Term Benefit By Dave Hershman
6
14
Value Nation: The Desk Appraisal Review Under the
Microscope By Charlie W. Elliott Jr., MAI, SRA
17
The Trusted Mortgage Professional: Back on Track
Encouraging Takeaways From This Year’s MBA Annual
Convention By Greg Schroeder
17
Trend Spotter: Don’t Let America’s Lost Decade be Your
Lost Decade By Gibran Nicholas
18
SAFE Smart … Credit When Credit Is Due
By Paul Donohue, CRMS
19
Forward on Reverse: FIT for Reverse Mortgage Lenders:
Part III … Why Lenders Must be FIT Smart
20
FHA Insider: FHA Update on CLTV Changes and UFMIP
Refunds By Jeff Mifsud
22
Social Media: Take Two Breaths and E-mail Me in the
Morning By Andrea Obston
23
Ask Tommy: Your QC Expert By Tommy A. Duncan, CMT
25
National Mortgage Professional Magazine’s 40 Under 40:
The 40 Most Influential Mortgage Professionals Under 40
26
MRev Hits New York
32
A View From the C-Suite: Predictions and Strategies in a
Down Market By David Lykken
34
2011: The Year of Big Decisions By Marve Stockert
35
Embrace These Five Actions and Grow in 2011
By Josephine Nicholas
36
The New Mortgage Company: Changing Your Business to
Thrive in Today’s Market By Joshua Stein
37
Mortgage Professionals: Where Are You Headed in 2011?
38
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NMP
November 2010
Volume 2 • Number 11
Mortgage PROFESSIONAL
A Message From NMP Media Corp.
Executive Vice President Andrew T. Berman
What Thanksgiving Means to NMP
N A T I O N A L
MAGAZINE
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(516) 409-5555, ext. 312
[email protected]
Andrew T. Berman
Executive Vice President
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Domenica Trafficanda
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[email protected]
Karen Krizman
Senior National Account Executive
(516) 409-5555, ext. 326
[email protected]
2
Jon Blake
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ARTICLE SUBMISSIONS/PRESS RELEASES
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contact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or e-mail
[email protected]. The deadline for submissions is the first of
the month prior to the target issue.
SUBSCRIPTIONS
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301; e-mail [email protected] or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the
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Statements, articles and opinions in National Mortgage Professional Magazine
are the responsibility of the authors alone and do not imply the opinion or
endorsement of NMP Media Corp., or the officers or members of National
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Association of Professional Mortgage Women (NAPMW), National Credit
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Participation in NAMB, NAPMW, NCRA, and/or other state mortgage
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product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA,
and other state mortgage trade associations.
National Mortgage Professional Magazine, NAMB, NAPMW, NCRA,
and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance
aspects of advertisers, products or services and/or the editorial content contained in NMP Media Corp. publications. National Mortgage Professional
Magazine and NMP Media Corp. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.
MO
RTGAGE PRO
NAMB/WEST
Our partnership with the National Association of Mortgage Brokers (NAMB) as their official magazine has
brought us some great insights from the frontlines. This month, we feature a message from Mike Anderson,
NAMB Government Affairs Committee Chair, talking about the need to band together to fight the predators preying upon mortgage originators. Make sure you are at NAMB/WEST in Las Vegas to learn how to protect yourself from these attacks. In addition,, it will be a great event to learn how to build your business in
2011 with some of the industry’s brightest minds, including Greg Frost, Frank Garay and Brian Stevens from
Think Big Work Small, and other industry leaders.
Our 40 Mortgage Professionals of the Month
Last year, the list was comprised mostly of originators. However, this year, we were more open to suggestions
from individuals involved with mortgage technology, the secondary market and the servicing sector. While
my roots are personally in the origination side of the business, I recognize that those individuals who bring
technology, help with automation, provide access to products and give originators the ability to be competitive on pricing impact a larger pool of mortgages (literally and figuratively). So, the idea is to still highlight
the originators out there who are crushing it (hat tip to Gary Vaynerchuk) and to also shine the spotlight on
some of the individuals who empower these MLOs to help America with their real estate financing.
Positive vibes at this year’s MBA Convention
This month’s Trusted Mortgage Professional column from Greg Schroder has some positive comments on
the Mortgage Bankers Association (MBA) and its recent Annual Convention in Atlanta speculating that
wholesale market is making a strong comeback. Mark Green of Top of Mind Networks attended the MBA
Annual Convention to create video content for the upcoming launch of MortgageProfessional.TV. You will
be able to see his footage in January 2011 on MortgageProfessional.TV. As Mark put it, “Suffice it to say, all
in attendance agreed that 2011 is going to be another chaotic year in the mortgage business—and that the
only thing that will stay the same is lots of change.”
Growth strategies
As you prepare your goals for 2011, be sure to check out our Special Focus on Growth Strategies for 2011.
The section starts off with David Lykken sharing some of his insights from his panel discussion at the MBA
Annual Conference. Following David, Marve Stockert provides a number of planning tips for 2011. Then,
you can grab five strategies from Josephine Nicholas that will be sure to help you grow in 2011. Joshua
Shein shares some business models to look at to see what is right for you and your organization, and this
month’s focus wraps up with a piece from direct mail expert, Joy Gendusa, on three strategies to grow your
business in the new year.
Until next month ...
SSIONAL
NATIONAL
NMP
FE
NOVEMBER 2010 ILLINOIS
NationalMortgageProfessional.com
ADVERTISING
To receive any information regarding advertising rates, deadlines and requirements, please contact Senior National Account Executive Karen Krizman at
(516) 409-5555, ext. 326 or e-mail [email protected].
For me, I, like everyone else, am thankful that I have a wonderful family, great friends
and a team of wordsmiths, designers and business development experts that help us
deliver a product that just keeps growing (much like my waistline on Thanksgiving!). I
also want to take the time to give thanks to our readers for helping us create this magazine each month by letting us know what they want to see in an industry publication.
I also need to give thanks to our thoughtful and inspiring monthly contributors. Folks
like Dave Hershman, with his monthly update on the secondary market, or Charlie W.
Elliott Jr. who provides his insights from the frontlines of the valuation business. How
about industry leaders like Gibran Nicholas of the CMPS Institute who attended “The Future of Housing
Finance” conference, hosted by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve,
on behalf of National Mortgage Professional Magazine. Gibran learned the sobering fact that this was nothing more than a photo-op. He does continue on with a pretty motivating message for our readers.
We also cannot forget one of the top reverse mortgage authorities in the nation, Atare E. Agbamu, who,
this month, brings us the third installment of his FIT for Reverse Mortgage Lenders series. I am also really
thankful for one of my longtime favorite trainers in the industry, Paul Donohue. We enjoy sharing his
insights on the SAFE Act and industry training grace the pages of our publication each month. This month,
Paul covers the controversial credit reports that mortgage loan originators are subject to. And how can I forget our “FHA Insider” Jeff Mifsud? Our readers are very thankful for the insights on FHA that he has shared
with us over the years, and this month, he covers CLTV changes and UFMIP refunds. How about David
Lykken’s view from the C-Suite? I am honored to have the top mortgage banking consultant share monthly
his insights on what he sees with mortgage industry CEOs, CIOs, CSOs, COOs and other C-Level executives.
Last, but certainly not least, I’d like to mention Tommy A. Duncan. Tommy has been writing his “Ask
Tommy: Your QC Expert” column since we launched the magazine. He has provided some great insights on
loan quality as he sees it, looking at the data from all sources of origination, from credit unions, to community banks, to TPOs, to big banks and everything in between. I thank him for his great articles and also
his service to our country. While you might know him as executive vice president of Quality Mortgage
Services, many don’t know he is also an active duty lieutenant colonel commanding a battalion with 30
years of service and has earned multiple campaign badges.
MAG
AZIN
E
National Mortgage Professional Magazine
is published monthly by NMP Media Corp.
Copyright © 2010 NMP Media Corp.
Andrew T. Berman, Executive Vice President
NMP Media Corp.
The National Association of
Mortgage Brokers
National Association of Professional
Mortgage Women
11325 Random Hills Road, Suite 360
Fairfax, VA 22030
Phone #: (703) 342-5900 Fax #: (703) 342-5905
P.O. Box 451718 Garland, TX 75042
Phone #: (800) 827-3034 Fax #: (469) 524-5121
Web site: www.napmw.org
NAMB Board of Directors
Officers
President—William R. Howe, CMC, CRMS
Howe Mortgage Corporation
13322 East Paradise Drive
Scottsdale, AZ 85259
(602) 200-8100 [email protected]
President-Elect—Michael D’Alonzo, CMC
Creative Mortgage Group
1126 Horsham Road, Suite D
Maple Glen, PA 19002
Vice President—Donald J. Frommeyer, CRMS
Amtrust Mortgage Funding Inc.
200 Medical Drive, Suite D
Carmel, IN 46032
Secretary—Virginia Ferguson, CMC
Heritage Valley Mortgage Inc.
5700 Stoneridge Mall Road, Suite 225
Pleasanton, CA 94588
Treasurer—John Councilman, CMC,CRMS
AMC Mortgage Corporation
2613 Fallston Road
Fallston, MD 21047
Immediate Past President—Jim Pair, CMC
Mortgage Associates Corpus Christi
6262 Weber Road, Suite 208
Corpus Christi, TX 78413
Directors
Donald Fader, CRMS
SMC Home Finance
P.O. Box 1376
Kinston, NC 28503-1376
Olga Kucerak, CRMS
Crown Lending
222 East Houston, Suite 1600 San Antonio, TX 78205
President-Elect
Laurie Abshier, GML, CMI
(661) 283-1262
E-Mail: [email protected]
Vice President—Eastern Region
Christine Pollard
(646) 584-8332
[email protected]
Senior Vice President
Candace Smith, CMI, CME
(512) 329-9040
[email protected]
Secretary
Murielle Barnes, CME
(806) 373-6641
[email protected]
Vice President—Northwestern Region
Jill M. Kinsman
(206) 344-7827
[email protected]
Treasurer
Hulene Bridgman-Works
(972) 494-2788
[email protected]
Vice President—Western Region
Tim Courtney
(760) 792-5620
[email protected]
Parliamentarian
Dawn Adams, GML, CMI
(607) 737-2584
[email protected]
National Credit Reporting Association Inc.
125 East Lake Street, Suite 200 Bloomingdale, IL 60108
Phone #: (630) 539-1525 Fax #: (630) 539-1526
Web site: www.ncrainc.org
3
2010 Board of Directors
Marty Flynn
President
(925) 831-3520, ext. 224
[email protected]
Sanford (Sandy) Lubin
Director
(805) 481-3155
[email protected]
Tom Conwell
Vice President
(248) 473-7400
[email protected]
Judy Ryan
Director
(800) 929-3400, ext. 201
[email protected]
Daphne Large
Treasurer
(901) 259-5105
[email protected]
Tom Swider
Director
(856) 787-9005, ext. 1201
[email protected]
William Bower
Director
(800) 288-4757
[email protected]
Donald J. Unger
Director
(303) 670-7993, ext. 222
[email protected]
Mike Brown
Director
(800) 285-6691
[email protected]
NCRA Staff
Susan Cataldo
Director
(404) 303-8656, ext. 204
[email protected]
Nancy Fedich
Director
(908) 813-8555, ext. 3010
[email protected]
Terry Clemans
Executive Director
(630) 539-1525
[email protected]
Jan Gerber
Office Manager/Membership Services
(630) 539-1525
[email protected]
NOVEMBER 2010
Walter Scott
Excalibur Financial Inc.
175 Strafford Avenue, Suite 1 Wayne, PA 19087
Vice President—Central Region
Lisa Puckett
(405) 741-5485
[email protected]
Deb Killian, CRMS
Charter Oak Lending Group LLC
3 Corporate Drive, P.O. Box 3196
Danbury, CT 06813-3196
(203) 778-9999, ext. 103 [email protected]
President
Gary Tumbiolo, CMI
(919) 452-1529
[email protected]
Michael Anderson, CRMS
Essential Mortgage
3029 S. Sherwood Forest Boulevard, Suite 200
Baton Rouge, LA 70816
National Board of Directors
lower than the profits in the second quarter of 2009. Walsh said, “A year before,
quarterly production volume averaged
$280.9 million and the refinancing share
was over 60 percent. The heavy volume
and refinancing share helped lower perloan operating costs to $3,414 per loan
and profits soared to $1,358 per loan.”
For more information, visit www.mortgagebankers.org.
Federal Reserve Board
announces rule
protecting the integrity
of the appraisal process
MBA survey finds
mortgage bankers made
$300-plus more per
loan in Q2 over Q1
4
Independent mortgage bankers and
subsidiaries made
an average profit
of $917 on each loan they originated in
the second quarter of 2010, up from
$606 per loan in the first quarter of
2010, according to the Mortgage
Bankers Association (MBA)‘s Second
Quarter 2010 Mortgage Bankers
Performance Report. The increase was
driven by a rise in the average production volume for each firm to $196.6
million in the second quarter of 2010,
compared to $157.8 million in the first
quarter of 2010. As a result, production
operating expenses decreased to
$4,677 per loan in the second quarter
of 2010, from $5,147 per loan in the
first quarter of 2010.
“The significant rise in loan origination volume during the second quarter
reflects the surge in first-time homebuyers seeking to take advantage of the
tax credit before the deadline expired,”
said Marina Walsh, MBA’s associate vice
president of industry analysis. “Higher
production operating expenses typically are associated with purchase production compared to refinances. But in
this case, fixed costs were spread out
over more loans and lenders experienced higher pull-through rates. These
factors help explain why operating
expense dropped on a per-loan basis by
$470 per loan between quarters.”
However, average profits in the second quarter of 2010 were significantly
KEY #1
Offer your borrowers full product line,
BEAT THE STREET PRICING and
dedicated service support
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On-line pricing system with lock-in and approval engine
Automated pre-approvals
Full 24/7 access to processing and underwriting pipeline management
24 to 48 hour turn times on conditions and
underwriting
Fund loans in two weeks
The Federal Reserve Board
(FRB) has announced
an interim final rule to
ensure that real estate
appraisers are free to
use their independent professional judgment in assigning home values without
influence or pressure from those with interests in the transactions. The rule also seeks
to ensure that appraisers receive customary
and reasonable payments for their services.
The interim final rule includes several provisions that protect the integrity of the appraisal process when a consumer’s home is securing the loan. The
interim final rule:
Prohibits coercion and other similar
actions designed to cause appraisers
to base the appraised value of properties on factors other than their
independent judgment;
Prohibits appraisers and appraisal
management companies hired by
lenders from having financial or
KEY #2
Have a POWERFUL lender behind you
• Full service Direct Lender
• Multi-state lending
• As a HomePath Lender we can deliver
leads directly from FannieMae
• Experienced underwriters and staff to assist with your loans
• Non-Disclosure of YSP on HUD
• Appraisals ordered in-house through our
appraisal department and using local appraisers
• In-house licensing department to handle all
State Licensing and Compliance
• The security and stability of a big lender
with the personal touch of a small lender
other interests in the properties or
the credit transactions;
Prohibits creditors from extending
credit based on appraisals if they
know beforehand of violations involving appraiser coercion or conflicts of
interest, unless the creditors determine that the values of the properties
are not materially misstated;
Requires that creditors or settlement
service providers that have information about appraiser misconduct file
reports with the appropriate state
licensing authorities; and
Requires the payment of reasonable and
customary compensation to appraisers
who are not employees of the creditors
or of the appraisal management companies hired by the creditors.
The interim final rule is required by
the Dodd-Frank Wall Street Reform and
Consumer Protection Act. Compliance
will be mandatory on April 1, 2011.
Public comments are due 60 days after
the interim final rule is published in the
Federal Register, which is expected soon.
For more information, visit www.federalreserve.gov.
Zillow report finds 33 percent of Americans do not
qualify for a mortgage
Nearly one-third of
Americans are unlikely
to qualify for a mortgage because their credit scores are too low,
making homeownership out of reach
for many, according to an analysis of
KEY #3
Maximize Branch PROFITABILITY and
Branch Manager COMPENSATION
• Generous commission split
• Branch manager’s are able to control their
branch’s profits by designing their own revenue model for the four sources of income
indigenous to their market
• W-2 Employee with group health, dental,
vision and disability benefits
• Matching 100% dollar for dollar 401K contributions with vesting in 3 years
• Support for all accounting, human resources,
payroll, licensing and operations
Contact one of our Regional Managers in your area
TX, OK, LA: David Walden 1-214-878-6300 • [email protected]
Southeast & East Coast: Ken Michael 1-931-222-8023 • [email protected]
CA, OR, WA, NV: Allen Friedman 1-415-298-2500 • [email protected]
UT, CO, ID, WY, MT: Tony Moore 1-801-824-7243 • [email protected]
[email protected]
Coester Appraisal
survey finds appraiser
inexperience populates
the marketplace
A recently conducted
survey of more than
5,000 licensed appraisers
across the country contradicts lenders’
continued on page 8
www.amertoner.com
NOVEMBER 2010
Although the rise in
sub-prime lending
and the ensuing
wave of foreclosures
was partly a result of market forces that
have been well-documented, the foreclosure crisis was also a highly racialized process, according to a study by
two Woodrow Wilson School scholars
published in the October 2010 issue of
the American Sociological Review.
Woodrow Wilson School Ph.D. candidate Jacob Rugh and Woodrow Wilson
School’s Henry G. Bryant, professor of
sociology and public affairs; and
Douglas Massey, assessed segregation
5
Study finds race a factor
in foreclosure process
and the American foreclosure crisis.
The authors argue that residential segregation created a unique niche of
minority clients who were differentially
marketed risky sub-prime loans that
were in great demand for use in mortgage-backed securities (MBS) that could
be sold on secondary markets.
The authors use data from the 100
largest U.S. metropolitan areas to test
their argument. Findings show that
black segregation, and to a lesser
extent Hispanic segregation, are powerful predictors of the number and rate
of foreclosures in the United States—
even after removing the effects of a
variety of other market conditions such
as average creditworthiness, the degree
of zoning regulation, coverage under
the Community Reinvestment Act
(CRA), and the overall rate of sub-prime
lending.
“This study is critical to our understanding of the foreclosure crisis since
it shows the important and independent role that racial segregation played
in the housing bust,” said Rugh.
A special statistical analysis provided
strong evidence that the effect of black
segregation on foreclosures is causal
and not simply a correlation.
“While policy makers understand
that the housing crisis affected minorities much more than others, they are
quick to attribute this outcome to the
personal failures of those losing their
homes—poor credit and weaker economic position,” noted Massey. “In
fact, something more profound was
taking place; institutional racism
played a big part in this crisis.”
The authors conclude that Hispanic
and black racial segregation was a key
contributing cause of the foreclosure
crisis. “This outcome was not simply a
result of neutral market forces but was
structured on the basis of race and ethnicity through the social fact of residential segregation,” the authors note
in the article. “Ultimately, the racialization of America’s foreclosure crisis
occurred because of a systematic failure to enforce basic civil rights laws in
the United States,” the authors write in
the article. “In addition to tighter regulation of lending, rating, and securitization practices, greater civil rights
enforcement has an important role to
play in cleaning up U.S. markets. It is in
the nation’s interest for federal authorities to take stronger and more energetic steps to rid U.S. real estate and
lending markets of discrimination, not
simply to promote a more integrated
and just society but to avoid future catastrophic financial losses.”
For more information, visit www.asanet.org.
more than 25,000 loan quotes and purchase requests on Zillow Mortgage
Marketplace during the first half of
September 2010. Borrowers with credit
scores under 620 who requested purchase loan quotes for 30-year fixed,
conventional loans were unlikely to
receive even one loan quote on Zillow
Mortgage Marketplace, even if they
offered a relatively high downpayment
of 15-25 percent. Nearly one-third of
Americans, or 29.3 percent, has a credit score this low, according to data provided by myFICO.com.
Meanwhile, the lowest interest rates
went to mortgage borrowers who were
among the 47 percent of Americans
with excellent credit scores of 720 or
above. In the first half of September,
borrowers with credit scores of 720 or
above got an average low annual percentage rate (APR) of 4.3 percent for
conventional 30-year fixed mortgages.
Borrowers with mid-range credit scores
between 620 and 719 received APRs
between 4.73 and 4.44 percent, with
the APR rising as credit score drops.
Those with credit scores below 620
received too few loan quotes to calculate average low APR.
For those with mid-range credit
scores of 620 to 719, improving one’s
credit score can mean a significant savings in interest over time. For each 20point credit score increase, the average
low APR declines 0.12 percent, which
for a $300,000 home, with a 20 percent
downpayment, equates to a savings of
$6,400 over the life of a 30-year loan.
“We are in an era of historically low
mortgage rates, reaching levels not
seen in decades. Coupled with four
years of home value declines, homes
are more affordable than we’ve seen
for years. But the irony here is that so
many Americans can’t qualify for these
low rates, or can’t qualify for a mortgage at all,” said Zillow Chief Economist
Dr. Stan Humphries. “Four years ago, in
the era of easy-to-get subprime loans,
many borrowers with low scores did
buy homes, which in turn helped contribute to a housing bubble. Today’s
tighter credit is a predictable response
by banks after the foreclosure crisis,
but also keeps a cap on housing
demand, which is important for the
greater housing market recovery.”
For more information, visit www.zillow.com.
A Commentary on the
Transfer of Mortgage Loans to
RMBS Securitization Trusts
By Stephen Kudenholdt and Stephen F.J. Ornstein
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There is a tremendous amount of public 2. A lien on real property collateral securcommentary these days about possible ing this obligation to repay the debt,
defects in foreclosure proceedings com- which is created by a mortgage or a deed
menced by loan servicers. Much of this dis- of trust.
cussion concerns procedural matters, such
As used in this article, “mortgage”
as whether the appropriate steps are being
taken to verify the accuracy of statements includes a deed of trust. Transfers of
notes are governed by
made in affidavits executed
applicable state contract
in connection with these
law including the Uniform
proceedings. These issues
Commercial Code (UCC).
are very fact specific and it
Transfers of a mortgage or
may take some time to
deed of trust are generalascertain what effect, if any,
ly governed by state real
they may have on any given
property law. While these
loan.
laws do not conflict, they
Within this overall diado have the result of
logue, however, more funtransfers of mortgage
damental issues have been
loans being legally comraised challenging both the
plex. There is no single
validity of the procedures
legally prescribed format
used to convey mortgage
Stephen Kudenholdt
for transferring mortgage
loans into securitization
“… the industry stan- loans, such as the certifitrusts and the qualification
cate of title rules for
of the securitization trusts as dard procedures used
for decades in transmotor vehicles. In addia real estate mortgage
ferring mortgage
tion, ownership of a
investment conduit (REMIC)
at the time those trusts were loans to securitization mortgage loan does not
require the owner to
formed. These statements
vehicles comply with
are false and misguided.
the well-settled princi- have recorded an assignment of the mortgage in
The reasoning behind
ples of law governing
the real property records.
these statements appears
the transfer of mortThere are decades of
to be as follows:
gage loans, and there- custom and practice in
fore, are effective to
the transfer of mortgage
1. In order to satisfy proloans as between the origcedural requirements in transfer ownership of
inator and successive purconnection with foreclothe mortgage loans.”
chasers or into a securitisure, certain steps may
need to be taken in order to document zation. The practices used in conveying
the ownership of a mortgage loan by mortgage loans to private label securitization trusts are consistent with the
the securitization trust; and
2. Since not all of these steps were taken at practices used in transferring mortgage
the time of the securitization, the securiti- loans to Fannie Mae and Freddie Mac. In
zation trust must not own the mortgage addition, these practices are the same
loan. This reasoning is faulty, because some practices used in sales of mortgage loans
of the steps that may be required under (whole loan sales) in transactions prior to
applicable state law in order to bring a or not involving a securitization, as
foreclosure action are not required to between the originator and successive
purchasers in these whole loan sales.
transfer ownership of the mortgage loan.
These standard transfer procedures
The purpose of this article is to refute are essentially designed to meet three
these challenges to the efficacy of mort- objectives:
gage loan transfers to securitization trusts.
Simply stated, the industry standard pro- 1. Document the parties’ intent to effect
cedures used for decades in transferring a sale of the mortgage loans and
mortgage loans to securitization vehicles memorialize all terms and conditions of
comply with the well-settled principles of that sale;
law governing the transfer of mortgage 2. Evidence the transfer of ownership
loans, and therefore, are effective to by delivering the physical notes with
transfer ownership of the mortgage loans. endorsements consistent with UCC provisions, which protects the purchaser
from being subject to adverse third
Standard procedures for
transferring a mortgage loan party claims in the mortgage loans; and
A mortgage loan can be thought of as a 3. Enable the purchaser to become the
mortgagee of record as needed for forebundle of rights, including:
closure proceedings or other purposes.
1. A borrower’s obligation to repay
continued on page 10
debt, evidenced by a note; and
The New Financial Services Law:
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evolve within a healthy regulatory framework. There is no doubt that a lack of regulation with regard to the markets helped an
unhealthy situation become worse. Too
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not continue to be healthy in the future.
It is true that most in this industry consider this legislation just another aspect of
government intrusion. After all, we already
have the government taking over the
world in the wake of the financial crisis,
including hundreds of billions of dollars in
stimulus spent over the past three years,
bailing out major corporations and putting
Fannie Mae and Freddie Mac into conservatorship. However, believe it or not,
sometimes a higher level of government
regulation can actually have the longerterm result of lessening the need for government involvement. How can that be?
One impact of the financial crisis was
that the secondary markets for home loans
pretty much shut down in response to this
crisis. Not only were the secondary giants—
Fannie Mae and Freddie Mac—basically
bankrupt, what investors were going to
purchase securities backed by mortgages as
they were defaulting and home prices were
declining? Immediately, rates on home
loans rose even as the Federal Reserve
Board was lowering benchmark rates
because of this lack of confidence. The
most dramatic affect was on jumbo mortgages, as this market dried up completely.
The Fed stepped in and became the primary purchaser of these loans, as well as
purchasing Treasury securities. This helped
stabilize the markets. The good news is what
resulted from these actions. What could
have resulted in hundreds of billions in losses for the government with regard to this
operation actually has turned out to be profitable. Rarely has there been such a “winwin” result as the markets also stabilized. We
should mention also that the recently
“retired” TARP program has been met with
similar success in regard to at least limiting
losses to the government as banks and automobile companies were also saved.
But here is the problem, the government
cannot support the secondary markets forever just as it cannot own stakes in private
companies forever. That is not how capitalism works. The tight controls upon home
loan programs and underwriting sought by
the financial services legislation may restrict
choices with regard to exotic mortgages for
consumers and business models for originators, but they are designed to give confi-
Dave Hershman is a leading author for the
mortgage industry with eight books and several hundred articles to his credit. He is also
head of OriginationPro Mortgage School and
a top industry speaker. Dave’s NewsletterPro
Marketing System can be found at
www.webinars.originationpro.com. If you
would like to stay ahead of what is happening in the markets, visit ratelink.originationpro.com for a free trial or e-mail
[email protected].
Compliant closing documents
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Residential Mortgage Lending
The long-term benefit of financial services legislation
Recently, I hosted a Webinar which covered
a summary of the new financial services
legislation as it affects those in the mortgage industry. We had a guest speaker, Jim
Milano of Weiner, Brodsky, Sidman and
Kider PC, who focused on the topic of
greatest interest to mortgage loan officers,
compensation. Of course, the feedback we
have heard time and time again, is “woe is
us.” The industry will never be the same.
Actually, the industry will be the same. This
legislation completes a cycle that takes it
back to where it was 30 years ago when I
first got in the industry. We had some fixedrate loans, adjustable-rate loans and some
growing equity mortgages, but nothing
fancy. There were no overages paid. Banks
had lists of approved appraisers and that is
all you could use. There wasn’t much of a
secondary market outside of being able to
sell government and conforming loans,
and I made quite a good living at that time.
Now in reality, I don’t think that the
industry will stay at this 30-year-ago phase.
This is truly a pendulum that was swung
completely to the other side from the cowboy days of just five years ago. The pendulum will swing back. But it will swing back
more slowly and not nearly as far. The legislation really makes sure this pendulum
does not move as violently as it has in the
past. That is probably a good thing. Not only
had the industry swung too far, but it has
also swung too fast. Who could possibly
keep up with the changes? That is one reason I moved to having a legislative update
two to three times per week as part of our
Certified Mortgage Advisor program
(www.webinars.originationpro.com) and I
can tell you that it has been a major task for
me to keep up to communicate this information on a timely basis.
Rather than just continue with the
“woe is me” bent on all the information
coming out with regard to the financial
services and all the other legislation, I
would like to advance one very important
benefit for the mortgage and real estate
industries—survival. Perhaps I am being a
bit melodramatic about what is happening here, but I don’t think so. There is
nothing that is more important that what
has happened within this industry and
what could go wrong if this industry does
slowly, together. Meanwhile, don’t be surprised that the foundation will be put in
place for a recovery that comes more quickly than many are predicting. Why? There will
be pent up demand and population
growth. Even those who are relegated to
renting will need homes in the future. But
first, the foundation must be put in place.
news flash
continued from page 5
and independent appraisers’ claims that
appraisal management companies
(AMCs) are employing inexperienced
appraisers and are significantly underpaying appraisers. The survey, which was
conducted by Maryland-based AMC
Coester Appraisal Group, revealed that
only three percent of appraiser respondents have less than five years of experience, and more than half have been in
the business for 15 years or more.
Additionally, almost two thirds of
appraisers earn $250 to $350 per
appraisals assigned through an
appraisal management company—fees
that are well above the rumored $180
to $220 fees that appraisal management companies are believed to pay
appraisers, according to Brian Coester,
chief executive officer of Coester
Appraisal Group. When working on
their own as independent appraisers,
almost 40 percent earn $250-$350 per
appraisal.
The use of AMCs surged when the
Home Valuation Code of Conduct
(HVCC) went into effect in May 2009.
Since then, numerous lenders and
independent appraisers have been
accusing appraisal management companies of taking an unfair percentage
of appraisal fees while also producing
lower quality appraisals—supposedly
requirements such that the mortgage
never should have been endorsed by
the mortgagee in the first place just as
FHA would not have insured the mortgage on its own.
Specifically, these lenders may be
required to indemnify HUD if they
failed to: (1) Verify and analyze the
creditworthiness, income, and/or
employment of the borrower; (2) verify
the source of assets brought by the borrower for payment of the required
downpayment and/or closing costs; (3)
address property deficiencies identified in the appraisal affecting the
health and safety of the occupants or
the structural integrity of the property;
or (4) ensure that the property appraisal satisfies FHA appraisal requirements. HUD may seek indemnification
irrespective of whether the violation
caused the mortgage default.
While HUD will seek indemnification
in cases of fraud or misrepresentation at
any time, the Department intends to
codify a ‘reasonable time period’ for
requiring indemnification in cases
where the mortgagee failed to meet
FHA requirements. For those cases not
involving fraud or misrepresentation, it
has been HUD’s long-standing practice
of requiring indemnification “within
five years from the date of mortgage
insurance endorsement.”
The date of endorsement is a fixed
date, and therefore has the benefit of
HUD issues proposed rule
to solidify the FHA lender
indemnification process
completed by grossly inexperienced
appraisers—at higher prices than their
independent counterparts.
“Quite a few negative misconceptions about AMCs have been getting a
lot of media coverage, which is fueling
undue distress among lenders and
appraisers,” said Coester. “As an AMC,
we knew those claims were unfounded,
but just to be absolutely sure appraisers
felt the same way, we set up a survey to
get their feedback first-hand.”
The survey, which was completed in
August 2010, tracks the responses of
5,384 licensed appraisers throughout
the U.S. The study revealed that over
half (52.4 percent) of respondents feel
that an ideal fee of $350 to $400 would
allow for the highest quality of work on
a conventional appraisal, and 45.3 percent said that $400 to $450 would allow
for high-quality Federal Housing
Administration (FHA) appraisals. Nearly
78 percent of respondents stated that
the typical fees they were receiving
were enough for them to do their highest quality of work, more than 82 percent feel that AMCs should keep a percentage of 15 percent or less, and
almost 17 percent felt that AMCs were
entitled to 15 to 30 percent.
For more information, visit www.coesterappraisals.com.
The U.S. Department of
Housing & Urban Development
(HUD) has proposed new
regulations to strengthen
its authority to force certain lenders to
indemnify or reimburse the Federal
Housing Administration (FHA) for insurance claims paid on mortgages that are
found not to meet the agency’s guidelines. In addition, HUD’s proposed rule
would require all new and existing
lenders with the ability to insure mortgages on HUD’s behalf (Lender
Insurance mortgagee) to meet stricter
performance standards to gain and
maintain their approval status.
Last January, FHA announced a
series of policy changes to address risk
and strengthen the financial position of
its insurance fund. This announcement
will create a regulatory framework and
codify the legal authority FHA currently
has under the National Housing Act.
“It’s important that our expectations
are
crystal
clear,”
said
FHA
Commissioner David H. Stevens. “We
need to clarify which circumstances
we’ll require indemnification and the
level of loan performance we expect
lenders to maintain.”
For those lenders with special
authority to insure mortgage loans on
FHA’s behalf, HUD seeks to force
indemnification for ‘serious and material’ violations of FHA origination
8
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NOVEMBER 2010
transfer of mortgage loans
General custom and practice in the
sale of mortgage loans involves three key
steps from a documentary perspective:
e-mail: [email protected]
visit: www.calyxsoftware.com
10
Please send resume to:
[email protected]
or call 877-215-9950
seller in blank, are also key components in the sale of mortgage loans for
several reasons. First, because mortgage notes are generally “instruments”
Contract
under the UCC, possession of the mortIn mortgage loan sale transactions, gage note by the purchaser in a valid
there is almost always a contractual sale is generally sufficient to establish
agreement as between seller and purthat the purchaser’s ownership rights
chaser which: Clearly establishes the are superior to the rights of any other
parties intent to sell the mortgage person in the mortgage loan. Second,
loans to the purchaser; identifies the as an “instrument,” the note can be
specific mortgage loans being sold by transferred and the purchaser will be
use of a loan level schedrecognized as the holder
ule; contains granting
in accordance with applilanguage which states
cable UCC provisions,
that it conveys ownership
upon physical delivery of
of the mortgage loans;
the note to the purchaser
identifies the time of
with an endorsement
sale; and specifies the
(which may be in blank).
governing law for the sale
The question of whether a
transaction (frequently,
mortgage note is a negothe laws of the State of
tiable instrument is factNew York are designated
specific, and the standard
by the parties as the govtransfer procedures are
erning law). These condesigned to be effective
Stephen F.J. Ornstein
tractual agreements typiirrespective of whether it
cally also contain repre“The question of
is a negotiable instrusentations and warment. Third, since there is
whether a mortgage
ranties made by the sellgenerally only one physinote is a negotiable
er. An agreement of this
cal note per mortgage
instrument is facttype is essential to establoan, delivery by the sellspecific, and the
lish the parties’ intent to
er to the purchaser effecstandard transfer
sell the loan, to actually
tively prevents the seller
procedures are
convey the loan to the
from engaging in any misdesigned to be effecpurchaser and to articutaken, improper or fraudtive irrespective of
late the terms and condiulent sale or pledge of the
tions of the sale. (Delivery
mortgage loans to multiwhether it is a negoof the note and an assignple parties. Fourth, postiable instrument.”
ment of mortgage, while
session of the mortgage
important for the reasons discussed note may be needed for enforcement
below, do not in and of themselves of the note in the event of default,
establish the parties intent and articu- including by foreclosure.
late the terms and conditions of the
Notes may be delivered to the pursale.)
chaser with an endorsement in blank. It
In a private label residential mort- is common for a mortgage note for a
gage-backed securities (RMBS) transac- mortgage loan that has been sold to
tion, the relevant contractual agree- have stamped on it an endorsement to
ment is typically a pooling and servic- the effect of “Pay to the order of_____,
ing agreement, which conveys the without recourse,” signed by the origimortgage loans from the depositor to nator or a subsequent purchaser. Such
the trustee on behalf of the securitiza- an endorsement has the effect that any
tion trust. Another relevant document subsequent transfer of the note precould include a separate mortgage loan sumptively only requires physical delivpurchase agreement, under which the ery (i.e., with no additional endorsemortgage loans are sold by the sponsor ment). Therefore, where there are sucto the depositor immediately prior to cessive purchasers to a note, the
the sale from the depositor to the trust, endorsement in blank by any prior holdwith representations and warranties er is a sufficient endorsement for purthat are assigned to the trustee. These poses of the most recent purchaser. For
documents contain clear granting lan- this reason, a mortgage note that has
guage that conveys ownership of all of been transferred numerous times typithe seller’s “right, title and interest in cally will only show one endorsement,
and to” the mortgage loans to the which remains in blank. Importantly, for
trustee on behalf of the securitization all purposes for which an endorsement
trust. There is a schedule or exhibit to of a mortgage note may be necessary or
these documents that specifically iden- desirable in connection with a sale of
tifies each loan sold under the agree- the mortgage note, an endorsement in
ment.
blank is sufficient and is equally effective as an endorsement where the name
Delivery of Note
is filled in.
Physical delivery of the mortgage note
In private label RMBS transactions,
to the purchaser or its agent, together
with an endorsement of the note by the
news flash
11
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NOVEMBER 2010
The Securities & Exchange
Commission (SEC) has
charged a pair of employees at Boston-based State
Street Bank and Trust
SEC charges two State Street
employees with misleading
sub-prime mortgage info
Company with misleading investors about
their exposure to sub-prime investments. The SEC’s Division of
Enforcement claims that John P.
Flannery and James D. Hopkins marketed State Street’s Limited Duration
Bond Fund as an “enhanced cash”
investment strategy that was an alternative to a money market fund for certain types of investors. By 2007, however, the fund was almost entirely
invested in sub-prime residential
mortgage-backed securities (RMBS)
and derivatives. Yet despite this expo-
accountable those who violated the
law and harmed investors through
subprime investments.”
According to the SEC’s order instituting administrative proceedings
against Hopkins and Flannery, they
played an instrumental role in drafting a series of misleading communications to investors beginning in July
2007. Flannery was a chief investment
officer who no longer works at State
Street. Hopkins was a product engineer at the time, and is currently State
Street’s head of product engineering
for North America.
According to the SEC’s order, the
misleading
communications
to
being known to both HUD and the
lenders with the authority to self insure
mortgages. HUD believes five years is a
reasonable “seasoning” period for a
particular mortgage loan to either perform or go into default and for the
Department to ascertain whether origination errors were made. In addition,
this five-year period is not considered a
burden to lenders who might otherwise
face the possibility of indemnifying
insurance claims made on long-ago
endorsed mortgage loans.
The proposed rule will also require
those mortgagees with delegated lender
insurance authority to continually maintain an acceptable claim and default rate,
both to gain this special lender status as
well as to preserve it. HUD proposes that
all new unconditional direct endorsement lenders who have the authority to
self-insure mortgages must demonstrate
a default and claim rate at or below 150
percent for the previous two years. This
standard would apply to the state/states
where the lender does business, rather
than a national default/claim average.
The present regulation defines an
acceptable claim and default as at or
below 150 percent of either: (1) The
national average rate for all insured
mortgages; or (2) if the mortgagee
operates in a single state, the average
rate for insured mortgages in the state.
The current regulation may make it
easier for a single-state lender to meet
the acceptable standard if that lender
operates in a state that has a high
default rate. In contrast, a mortgagee
would be disadvantaged by having its
claim and default rate compared to the
national average if the mortgagee operates in states with comparatively high
default rates, even if the mortgagee is in
full compliance with FHA requirements
and otherwise eligible for “Lender
Insurance” approval. HUD believes the
proposed methodology will more accurately reflect mortgagee performance by
evaluating each mortgagee based on its
actual area of operations. FHA will continually monitor lender performance
rather than conduct an annual review of
each “Lender Insurance” mortgagee.
The FHA will also consider the two-year
default and claim performance of either
entity in the case of acquisition or merger
without requiring these entities to seek a
waiver. FHA, at its own discretion (without
any judicial or administrative action) also
clarifies that it has the authority to immediately withdraw a lender’s ability to selfinsure mortgage loans.
For more information, visit www.hud.gov.
sure to sub-prime securities, the fund
continued to be described as less risky
than a typical money market fund and
the extent of its concentration in subprime investments was not disclosed
to investors.
The SEC charged State Street in a
related case earlier this year and the
firm agreed to settle the charges by
repaying fund investors more than
$300 million.
“Hopkins and Flannery misled State
Street’s investors about the risks and
credit quality of a fund concentrated
in subprime bonds and other subprime investments,” said Robert
Khuzami, director of the SEC’s Division
of Enforcement. “The SEC is committed to identifying and holding
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Mobile: (732) 977-9898
Fax: (732) 377-8673
[email protected]
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Licensed Mortgage Banker – AL, CA, CT, DE, FL, GA, HI, KS, LA, MA, MD, MS, NC, NJ,
NY, OK, PA, SC, TN, VA, VT...and growing
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13
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Licensed in AL, AK, CA, CT, DE, FL, GA, IL, IN, LA, ME, MD, MA, MI, MO, NH, NJ, NM, NY, NC, OH, PA, SC, TN, TX, VA, WV and growing
NOVEMBER 2010
In an effort to inform
the current discussion
on the future of the
housing finance system,
the Federal Housing
Finance Agency (FHFA) has released
data on Fannie Mae and Freddie Mac
FHFA releases data on
Fannie and Freddie
single-family mortgages
for 2001-2008
that compare the credit quality and
performance of the loans they acquired
relative to loans financed with privatelabel mortgage-backed securities
(MBS).
“Data on the Risk Characteristics
and Performance of Single-Family
Mortgages Originated From 20012008 and Financed in the Secondary
Market” documents the differences in
single-family, conventional mortgages
acquired by the government-sponsored enterprises (GSEs) versus those
financed through the issuance of pri-
loans had LTV ratios at origination of 80
percent or less, while two-thirds of
mortgages financed with private-label
MBS had LTV ratios at or below 80 percent, with that share increasing from 54
percent of 2001 originations to 81 percent of 2008 originations. The pattern
of decreasing LTV ratios over time, most
pronounced for loans financed with private-label MBS, is consistent with the
greater use of second liens to avoid
mortgage insurance on low-down payment mortgages, a practice that was
increasingly common into 2007 and
that contributed to the unusually poor
performance of loans with low LTV
ratios relative to past experience.
investors related to the effect of the
turmoil in the subprime market on the
Limited Duration Bond Fund (established in 2002) and other State Street
funds that invested in it. State Street
provided certain investors with more
complete information about the fund’s
subprime concentration and other
problems with the fund. These betternotified investors included clients of
State Street’s internal advisory groups,
which provided advisory services to
some of the investors in the fund and
the related funds.
The SEC’s Division of Enforcement
alleges that State Street’s internal advisory groups, one of which reported
directly to Flannery, subsequently
decided to recommend that all their
clients redeem from the fund and the
related funds. The pension plan of
State Street’s publicly-traded parent
company (State Street Corporation) was
one of those clients. At the direction of
Flannery and State Street’s Investment
Committee, State Street sold the fund’s
most liquid holdings and used the cash
it received from these sales to meet the
redemption demands of better
informed investors. This left the fund
and its remaining investors with largely illiquid holdings.
In the settlement with the firm,
announced jointly by the SEC and the
offices of Massachusetts Secretary of State
William F. Galvin and Massachusetts
Attorney General Martha Coakley, State
Street agreed to pay more than $300
million to investors who lost money
during the sub-prime market meltdown
in 2007. State Street distributed those
funds to investors in February and
March. State Street additionally paid
nearly $350 million to investors to settle private lawsuits.
When the SEC announced its settlement with State Street in February, it
also announced that State Street had
agreed—pursuant to a limited privilege waiver—to provide information to
enable the SEC to assess the potential
liability of individuals involved with
State Street’s investor communications
about the fund.
The SEC’s case was investigated by
Robert Baker, Cynthia Baran, Deena
Bernstein, and John Kaleba. The SEC’s
litigation against Hopkins and Flannery
will be led by Bernstein, Kathy Shields
and Baker.
For more information, visit www.sec.gov.
vate-label mortgage-backed and
asset-backed securities (private-label
MBS) during the recent mortgage
lending and house price boom and
the ensuing bust.
Eighty-four percent of single-family
mortgages acquired by the enterprises
during 2001 to 2008 were made to
borrowers with FICO credit scores
above 660, while five percent were
made to borrowers with FICO scores
below 620. In contrast, 47 percent of
mortgages financed with private-label
MBS originated during this period
were made to borrowers with FICO
scores above 660, while 32 percent
were made to borrowers with FICO
scores lower than 620.
Over 82 percent of GSE-acquired
For more information on the National Association of Mortgage Brokers, visit www.namb.org.
NAMB/WEST 2010
Saturday-Monday, December 4-6, 2010
MGM Grand • Las Vegas
For more information, visit www.nambwest.com.
4:00 p.m.-6:00 p.m. ..............NAMB Government Affairs Committee Meeting
Scarcity … The rule of the rare … emphasize genuine scarcity, unique features, exclusive information.
The ethical use of influence means being honest and maintaining integrity.
Within these principles are triggers that cause people to say, “Yes.” These are the
teachings of Robert Cialdini, Ph.D., author of The Principles of Ethical Influence.
Greg Frost will present the psychology, establish the science, stipulate that science can be learned, and then share the practical applications of the science in his
market-proven strategies, systems and tactics that he has used for years to grow his
business. What’s old is new.
5:00 p.m.-6:00 p.m. ..................................NAMB Ethics Committee Meeting
1:45 p.m.-2:00 p.m. ........................................................................Break
6:00 p.m.-7:00 p.m. ............NAMB By-Laws & Education Committee Meetings
2:00 p.m.-4:00 p.m. ............Video Workshop: Brian Stevens & Frank Garay of
Think Big Work Small
Program of Events
14
(Subject to change)
Friday, December 3
2:00 p.m.-6:00 p.m.........................................................Registration Open
4:00 p.m.-5:00 p.m. ........................NAMB Membership Committee Meeting
6:00 p.m.-8:00 p.m. ................................NAMB Finance Committee Meeting
7:30 a.m.-5:00 p.m. ......................................................Registration Opens
3:30 p.m.-4:30 p.m. ............................................FHA Mortgage (1 CE Hour)
Additional fee applies for NMLS and class materials. Limited seating. Register online
in advance to attend this class.
8:00 a.m.-9:00 a.m. ..............................Allison Jenkins of Hondros Learning
American Society for Asset Protection
4:00 p.m.-5:00 p.m. ..................Session Featuring Steve Richman, Marketing
Manager, National Spokesperson and Trainer With Genworth
Saturday, December 4
8:00 a.m.-10:00 a.m. ......................................................Ethics (2 CE Hours)
9:00 a.m.-9:15 a.m...........................................................................Break
9:15 a.m.-10:15 a.m. ......................A Presentation From Orawin Velz, Senior
Economist, Fannie Mae
4:00 p.m.-6:00 p.m.....................................Speed Dating … Mortgage Style!
4:45 p.m.-6:45 p.m. ......................................Reverse Mortgage (2 CE Hours)
7:00 p.m.-9:00 p.m. ....................................Networking Cocktail Reception
10:15 a.m.-10:30 a.m. ......................................................................Break
Sunday, December 5
10:30 a.m.-11:45 a.m. ................................A Presentation From the Federal
Housing Administration (FHA)
8:00 a.m.-11:00 a.m. ..................NAMB Government Affairs Panel Discussion
Noon-1:45 p.m. ......Lunch With Greg Frost: The Principles of Ethical Influence
Reciprocity … Be the first to give, service, information, concessions.
Authority … Establish your position through professionalism, industry knowledge, your credentials, admitting weaknesses first.
Consensus … Unleash people power by showing responses of many others, others’ past successes, testimonials from similar others.
Liking … Uncover similarities, areas for genuine compliments and opportunities for cooperation.
Consistency … Start small and build with existing commitments toward voluntary choices.
7:30 a.m.-5:00 p.m. ........................................................Registration Open
10:00 a.m.-1:00 p.m. ..............................Federal Law Education (3 CE Hours)
1:00 p.m.-6:00 p.m. ........................................................Exhibit Hall Open
6:00 p.m.-8:00 p.m. ....................................Networking Cocktail Reception
Monday, December 6
8:30 a.m.-12:30 p.m. ..................................NAMB Delegate Council Meeting
1:30 p.m.-4:00 p.m. ..................................................NAMB Board Meeting
A Message From NAMB
Government Affairs Committee
Chair Mike Anderson, CRMS
Mike Anderson, CRMS, Government Affairs, PAC Chair and Board Member
National Association of Mortgage Brokers
15
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Please call Jean Badciong, Chief
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Suite 105
Waukesha, WI 53186
www.inlantapartners.com
Loans for your dreams®
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of Illinois Department of Financial and Professional Regulation, Division of Banking located at 122 S. Michigan Ave., Suite 1900,
Chicago, IL 60603. Phone #312-793-1409
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NOVEMBER 2010
Approved to do business in Wisconsin, Illinois, Indiana, Iowa, Florida, Michigan, Minnesota, Missouri,
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If you aspire to reach new heights with your
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legal, in-house funding, and underwriting.
The Government Affairs team of the National Association of
Mortgage Brokers (NAMB) has been very active so far this year
and has had some significant impact with lawmakers and regulators in Washington, D.C.
The most recent victory is the recently released appraisal independence announcement from the Federal Housing Finance
Agency (FHFA) and Fannie Mae. NAMB has fought hard and had
several meetings with FHFA/Fannie Mae to stress the importance
of appraisal independence and portability. Well, they listen to us, and on Oct. 14,
the announcement was made and appraisal portability was included.
NAMB was invited to attend two very important meetings this year. The first
meeting was the Future of Housing Conference hosted by the U.S. Department
of the Treasury and the U.S. Department of Housing & Urban Development
(HUD). The intention of the meeting was to gather thoughts and ideas of the
future of the government-sponsored enterprises (GSEs) and housing finance in
general. NAMB presented a position paper on our thoughts for where the GSEs’
role should be in the future, which can be found on the NAMB Web site,
www.namb.org.
We also stressed how we must get underwriting back to some sort of normalcy
and bring back some common sense. We discussed the overlays in underwriting
and stressed how they are slowing down the recovery of the U.S. housing market.
They made it clear that more meetings will be scheduled and that NAMB will be
invited back to the table on this very important issue.
The second meeting in September was with a very small group of industry
leaders held at the Treasury with Timothy Geithner, Secretary of the Treasury,
and the newly appointed head of the Consumer Financial Protection Bureau
(CFPB), Elizabeth Warren. You can all count on a new simplified combined Good
Faith Estimate (GFE) and Truth-in-Lending (TIL) no later than July of 2011. The
meeting went very well and NAMB was very instrumental in the proceedings of
the meeting and we received a lot of face time. The outcome of the meeting
was for a simple-to-understand GFE and TIL. NAMB stressed doing away with
the annual percentage rate (APR), which drew quite a bit of conversation that,
in the end, most agreed the APR is very confusing and very difficult to understand and explain to a borrower. More meetings will be scheduled in the
months ahead and NAMB will be invited back to the table to participate.
We are also working extremely hard on the new Fed rule on loan originator
compensation. I cannot discuss the plans at this current time, but rest assured, we
are working on a plan. We are extremely concerned that this rule places mortgage
brokerage companies and their loan officers at a competitive disadvantage in the
marketplace. We have scheduled meetings with executive branch agencies to discuss our concerns, including the newly created Consumer Financial Protection
Bureau.
Now is the time to attend NAMB/WEST 2010 in Las Vegas in early December to
participate in the Government Affairs planning session where we will discuss our
goals and directives for the remainder of the year, especially now that we have the
results of Election Day. Your voices are important and please plan on attending for
your opinions matter to us.
I would like to close with a crucial cry and plea … the loan originator has
predators preying upon us in the form of regulators and lawmakers who do not
understand our business. They are chipping away at our livelihood and our
futures every day. The number of loan originators has decreased considerably
from three years ago. According to Nationwide Mortgage Licensing System
(NMLS), there are approximately 143,000 licensed loan originators in America
today. Here is the sad part, of that 143,000, only approximately 5,000 are members of NAMB … yes, 5,000! This sends a signal to lawmakers! If you do not care
enough about your industry or profession to join it and protect your interests,
then why should anyone in Washington, D.C.? I can assure you that NAMB cannot continue the fight on Capitol Hill with only 5,000 members. We need 20,000
members minimum to really be effective in a big way. We will not be able to
pay for the lobbyists to fight and represent our livelihood without more members. A national association is very crucial when dealing with Washington, D.C.
and individual states cannot be as effective without a national force behind
them. NAMB has an excellent reputation on the Hill and Roy DeLoach is very
respected in Washington, D.C. I am afraid that without more members, we cannot retain such a high profile person to lead the way. It cannot be a matter of
cost. NAMB dues are $120 for mortgage brokers and $50 for originators—a bargain price to protect your livelihood. My plea to you is to join NAMB and recruit
new members and we will do the fighting if you simply do your part and that
is “Protect Your Industry and Join NAMB!” Please visit www.joinnamb.org and
show how much you care about the profession you choose to make a living in.
Thank you,
transfer of mortgage loans
the prevailing and nearly universallyfollowed practice has been for the
endorsed notes to be physically delivered to the trustee, or to a custodian as
the trustee’s agent, at the closing of the
securitization.
Typical procedures include a requirement that the trustee or custodian provide an initial certification at closing and
a final certification a specified number
of days thereafter in order to confirm
the delivery of each mortgage note. Any
exceptions noted in these certifications
result in a repurchase obligation of the
seller within a specific period of time.
Significantly, these procedures require a
specific verification by the trustee or
custodian that it has in fact received the
physical notes for each loan listed on the
mortgage loan schedule. These procedures make it highly unlikely that there
has been any widespread failure to
deliver the mortgage notes that simply
went undetected.
16
Assignment of Mortgage
The final key step in transferring ownership of a mortgage loan is to provide
an assignment of mortgage in recordable form to the purchaser. Typically,
the assignment is in blank so the name
of the assignee can be filled in later
prior to recordation. Because the mortgage “follows the note,” it secures the
debt for the benefit of the note holder,
and as between seller and purchaser it
is not necessary to record the assignment in the name of the purchaser in
order to convey rights under the mortgage to the purchaser. However, in
order to exercise its rights under the
mortgage against the borrower following default, it may be necessary, under
certain states’ law, that the purchaser
become the mortgagee of record.
Delivery of an assignment of mortgage
in recordable form in blank is intended
to enable the purchaser to become the
mortgagee of record by completing the
assignment in its name and submitting
it for recording. Because every recording of an assignment of mortgage
involves a filing fee and other expenses, it is not unusual for these assignments to remain unrecorded until such
time as is needed in connection with a
foreclosure of a specific defaulted
loan.
In a private label RMBS transaction,
the prevailing practice has been to
deliver an original-signed assignment of
mortgage in recordable form in blank.
In many cases, the securitization governing documents have not required
that the assignments of mortgage be
recorded in favor of the trust as a general matter. Certification of receipt by
the trustee or custodian of the assignments of mortgage has been required
under the same procedures as for the
mortgage notes.
Variations from the
above procedures
In our experience, we are not aware of
material deviations from the general
practice of delivering the physical
mortgage notes to the trustee or its custodian. In some programs, delivery of
the notes was permitted to occur within a specified period of time after
issuance, but subject to the overall procedures for checking in the notes and
providing a certification of receipt by
the trustee or custodian with repurchase required for any delivery failures
as described above.
In some cases, at the time of the
securitization it is known that the seller
will be unable to produce the physical
note because it had been previously
lost or destroyed. In that case, a lost
note affidavit executed by the seller
would be delivered to the trustee which
affidavit would confirm that the seller:
1. Had owned the loan;
2. Had possession of the original note;
and
3. Had attached a true and complete
copy of the original note to the affidavit, and also that the original note
had been lost or destroyed.
The securitization governing documents by their terms would still nevertheless convey ownership of those mortgage
loans to the trustee, although the lack of
the original note might in some states give
rise to additional requirements that the
lender must comply with in connection
with a foreclosure (e.g., posting a bond).
With respect to mortgage loans where,
as of the time of the securitization, the
mortgage was held through the Mortgage
Electronic Registration System (MERS),
instead of delivering an assignment of
mortgage, the seller would transfer its beneficial interest in the mortgage to the
trustee through MERS. In jurisdictions
where the note holder must be named as
the mortgagee of record in order to complete a foreclosure, relatively simple steps
can be taken to accomplish this, thereby
permitting foreclosure if necessary
(although delays may occur).
Validity of original transfer
procedures
For the reasons described above, these
standard procedures are sufficient to
validly transfer ownership of the mortgage loans to the securitization trusts,
consistent with the clear and unambiguous intent of all parties to the transactions (including the investors) at the
time. Specifically, use of an endorsement in blank on the mortgage note is
fully consistent with a sale. Recordation
of an assignment of mortgage to the
securitization trust is not necessary to
evidence ownership of the mortgage
loan by the trust, and the delivery of an
assignment of mortgage in blank in
recordable form is sufficient to enable
the trust to become the mortgagee of
record if needed for foreclosure.
There may be additional steps required
at the time of foreclosure in order to comply with procedural or documentary
requirements. For example, an assignment of the mortgage may need to be
recorded to the securitization trust. Any
such additional steps would not convey
any new or additional ownership rights to
the securitization trust and would not
negate the sufficiency of the transfer procedures described above to convey ownership of the mortgage loans to the securitization trust at the time of issuance.
It should not be surprising that additional steps may be needed at the time of
foreclosure. The standard transfer procedures described above are used in the context of transactions between sophisticated
financial institutions and institutional
investors, who clearly mutually intend for
the transactions to be sales. As commercial
transactions, the steps taken are certainly
sufficient to legally convey ownership and
protect the rights of the purchaser, but do
not include additional steps not required
to convey ownership that would involve
additional time or expense. In contrast, the
foreclosure process is adversarial, and in
that context, it is understandable that
extra requirements could be imposed over
and above those necessary to convey ownership of the loan itself.
Is there a REMIC
qualification issue?
A few commentators have added to the
parade of horrors, a concern that the REMIC
would lose its qualification because it did
not own the mortgage loans. The underlying premise to this argument is that the
actions taken to convey ownership of the
loans at issuance were ineffective and that
any subsequent step taken to supposedly
“cure” such deficiency (such as recordation
of an assignment of mortgage) would have
the effect of transferring the mortgage loan
to the REMIC after the 90-day period following the issuance date during which transfers
to the REMIC are permitted, causing a prohibited transaction tax. The simple response
to this argument is that the mortgage loans
have been legally conveyed to the securitization trust at the time of issuance, which
satisfies the requirements of the Internal
Revenue Code and the related Treasury
Regulations governing REMIC qualification.
Under basic principles of tax law in which
substance is controlling over form, there is
no question that the REMIC at the time of
issuance was the owner of the mortgage
loans for tax purposes.
Conclusion
We believe that the recent allegations of
possible wholesale failures to convey ownership of mortgage loans to private label
RMBS trusts are baseless and unfounded.
All parties to these transactions, including
issuers, underwriters, trustees and
investors, clearly intended that the transactions convey ownership of the loans to the
trusts, and appropriate steps were taken to
effect such conveyance in accordance with
well-settled legal principles governing
transfers of mortgage loans. Any attempts
to assert otherwise today are inaccurate
and uninformed, and, if left to stand
unchallenged, could cause substantial and
unwarranted harm to the economy.
Stephen Kudenholdt is co-chair of SNR
Denton’s Capital Markets practice. His
practice includes residential and commercial mortgage-backed securities and
other asset-backed securities, primarily
focusing on residential mortgage loan
securitization. He may be reached by
phone at (212) 768-6847 or e-mail
[email protected].
Stephen F.J. Ornstein is a partner in SNR
Denton’s Capital Markets practice. His
practice concentrates on banking and
real estate law with an emphasis on
federal regulation of real estate.
Orenstein regularly counsels mortgage
companies, mortgage insurers, financial
institutions and others in complying
with mortgage and consumer lending
regulations. He may be reached by
[email protected].
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THE
TRUSTED
MORTGAGE
PROFESSIONAL
Back on Track
Encouraging takeaways from this year’s MBA Annual Convention
By Charlie W. Elliott Jr., MAI, SRA, ASA
The Desk Appraisal Review
Under the Microscope
This column is the second of three that
I am writing to bring attention to and
to extol the virtues of the three most
commonly used appraisal review
reports as quality control tools:
Greg Schroeder is president of Comergence Compliance Monitoring. To learn
more about how the Comergence Compliance Trusted Mortgage Professional program can help, call (714) 495-4720.
17
Right about now is the time when folks in the industry stop to reflect
on the year gone by and make their predictions for the coming year.
Given that the Mortgage Bankers Association (MBA) Annual Convention & Expo falls just before this time each year, it’s not surprising that the reviews and forecasts reflect the mood of conference
attendees. At the 2008 show in San Francisco, the mood was bleak, if not suicidal! At
least half, if not two-thirds, of the industry was wiped out and protestors were literally
knocking at the door. Relief was the prevailing emotion at the 2009 San Diego show—
relief to still be in business, relief that blame for the financial crisis was shifting towards
Wall Street, relief that people actually showed up to the conference.
Prior to last month’s MBA Annual Convention & Expo in Atlanta, I’m not quite
sure what my prediction for 2011 would have been. This was the year of the regulator, with the changes to the Real Estate Settlement Procedures Act (RESPA) going
into effect the beginning of the year, the Dodd-Frank Act passing a mere two
months before the show in October and Washington, D.C. showing no signs of
slowing down the winds of financial reform. With the Federal Reserve Bank’s
changes to yield spread premium (YSP) compensation going into effect in the second quarter of 2011, Bank of America’s announced exit from wholesale, and early
predictions by analysts that interest rates will rise, one would assume that the mood
at this year’s show would be anything but optimistic.
However, after spending two solid days on the exhibit hall floor talking with
lenders and vendors alike, I can say, with a reasonable measure of certainty, that
2011 is going to be a good year for the mortgage industry. Folks are encouraged by
the growth the industry has experienced over the year, and they see the potential
for the industry to come back perhaps stronger than ever.
In regards to wholesale, there is every reason to believe that this channel is going
to come back in a big way over the next 18-24 months. I spoke with multiple lenders
who expressed a desire to either start up a wholesale division at their institution, or
to revive their now-defunct wholesale operations. And why shouldn’t they? It’s no
secret within the industry that brokers are, by far, the least expensive way to originate loans, and although the industry is expected to rebound even more, the need
to hold down costs, especially in light of the increased cost of regulatory compliance, will remain a top priority for lenders across the board. Additionally, the regulations put in place to police brokers in a way that hadn’t been done during the
mortgage bubble and the technology now available to lenders to proactively manage their brokers has made the wholesale channel perhaps the safest origination
method available.
Bank of America’s announcement that it was shuttering its wholesale division
threw lots of folks in a tizzy about the effect this would have on the resurgence of
wholesale. What’s interesting is not one person even mentioned the announcement
to me during the show. The truth is Bank of America’s exit from the channel actually opens the doors for both new and more active players to gain market share
and fuel the growth of the channel.
Given the exciting prospects for wholesale growth over the next two years, it’s
more important than ever for brokers to adopt the policies and procedures necessary to demonstrate their status as true Trusted Mortgage Professionals and gain
their fair share of the business that is to come.
NOVEMBER 2010
third and last occasion requiring an
appraisal review is that of loss mitigation or foreclosure. Admittedly, this is
after the horse is out of the barn, but it
does provide the lender with information that is helpful in making decisions
The electronic appraisal review;
in managing slow paying accounts
The desk review; and
and/or delinquent accounts. There is
The field review.
also ample time to perform the review
without the pressure of a closing loomThey are listed in the order
ing over the head of the
of the least comprehensive
review appraiser.
to most comprehensive,
The desk review is perand this series of columns
formed by a human, as
is designed to assist the
opposed to the various
reader in making the
electronic
applications
proper decision as to
used today in appraisal
which review tool is best
review. While it is not
for their given situation.
always required that the
The desk review is a very
reviewer be a state-certified
commonly used collateralappraiser, that is the most
assessment, appraisalcommon way that the
review tool. It is used to crireview is performed. In
tique the appraisal of real “Since the desk review some cases, regulations
property, typically on three
is prepared by a
require that the desk
different occasions. The
review be performed by an
human, one may
first is the pre-funding
appraiser certified in the
expect a level of logic
review, which typically
state where the property is
and reasoning, not
takes place immediately
located. Since the desk
found in electronic
prior to the closing of a
review is prepared by a
loan. This is arguably the reviews, to be applied.” human, one may expect a
most critical of the times at
level of logic and reasonwhich an appraisal will be reviewed. If the ing, not found in electronic reviews, to be
review is properly executed, it can prevent applied. Given the human element, one
the making of a loan on property where may expect a superior product from a
the appraisal is flawed. This, by definition, desk review over that of the electronic
means that the review must be made type.
quickly. This factor works against quality to
Desk review standards vary in scope.
a degree. The second occasion is the It is important that the lender know
post-funding, quality control sampling how the review is to be performed.
review. This is typically done to satisfy Some of the variables of the desk review
bank regulators, mandating that a sam- include whether sales and subject proppling of all appraisals be reviewed on erty data is confirmed, whether addiall closed loans. This is done, not to tional sales data is researched beyond
prevent the making of a particular that which is included within the
loan, but to identify a weak risk man- appraisal, whether the reviewer simply
agement system or to put the spotlight offers a pass-fail grade on the appraisal
on incompetent or unscrupulous or whether the reviewer offers a differappraisers. There is usually ample time ent opinion-of-value of the subject, in
to perform the review, so there is little
pressure to do a quick or hasty job. The
By Greg Schroeder
BY GIBRAN NICHOLAS
Don’t Let America’s Lost Decade
be Your Lost Decade
18
I recently was able to attend the least, this seems hypocritical for two
Symposium on Mortgages and the Future reasons.
of Housing Finance hosted in
First, our government is willing to
Washington, D.C. by the Federal Deposit run up trillion dollar deficits and
Insurance Corporation (FDIC) and the engage in trillions of dollars of “quantiFederal Reserve. The conference was a tative easing” in the name of “economhuge disappointment to me. In fact, I ic stimulus.” Spending $766 billion to
walked out after the first few sessions wipe out the negative equity of millions
because it seemed that the conference of homeowners seems like a small price
was nothing more than another photo-op to pay compared to what we are doing
for the government to say they are doing now with these enormous deficits cresomething (while doing
ated by the U.S. Treasury
nothing) about the mortand “quantitative easing”
gage and housing mess.
created by the Federal
One thing that sparked
Reserve. Perhaps nothing
a fire inside of me was a
would save us more
brief mention of Japan’s
money in the long run or
“Lost Decade.” Japan went
stimulate our economy
through an asset bubble
more than spending $766
collapse in the 1990s. The
billion to wipe out negagovernment of Japan did
tive equity; no matter
not have the courage to
how repugnant this radirequire the Japanese banks
cal idea seems to those of
to write down their bad
us who believe in free
loans and own up to their
market capitalism.
“The government’s
losses. As a result, Japan’s
Secondly, $700 billion
$700 billion bet is
economy stagnated for 10
is the amount that the
now paying off as
years as real estate prices
government loaned to
Wall Street firms are
deflated and consumers
Wall Street firms, and the
reporting record
were reluctant to borrow
U.S. Treasury is actually
profits once again
or spend money.
making a significant profand repaying their
Compare this to America.
it on their investment as
This is the end of 2010 and
the Wall Street firms get
government loans.”
our crisis started in 2007.
back on their feet. The
We are 30 percent of the way toward a same can be said for homeowners with
“lost decade” of economic growth in negative equity. For example, what if
the United States. Our country may the government paid down a homehave another one, two or seven years owner’s negative equity in exchange
to go before we make it out of this for a non-dischargeable future lien on
lackluster economic situation. Let’s the homeowner’s earnings?
appreciate the gravity of our situation:
The bottom line is that our country
There is a whopping $766 billion of has three choices:
negative equity in the U.S. today. The
government does not want to force 1. Remove all government intervention
mortgage lenders to write down this in the housing market; in this case, the
$766 billion of negative equity because housing market will most likely fix
if they did, most every financial institu- itself after another five to 10 years of
tion in the U.S. would be bankrupt. struggle.
This $766 billion problem could take 2. Continue with the ineffective blend
years to resolve.
of free market capitalism and halfThe government does not want to hearted government tinkering that we
figure out a creative way to arrange a have been experiencing since 2007. In
homeowner “bailout” by loaning home- this case, who knows when the housing
owners $766 billion to reduce their neg- market will recover.
ative equity because of “moral hazard” 3. Fix the negative equity problem with
and “free market concerns.” To me, at some form of large scale government
intervention. In this case, the housing
market may be fixed sooner rather
than later.
The bottom line is that it seems
clear that we are 30 percent of the
way toward a “lost decade” in the
United States with no plausible end in
sight. My question to you is what are
you going to do about it? You cannot
control house prices or economic
cycles. You cannot control the government and what they do or do not do
about the negative equity situation.
However, you can control how you
yourself respond to the world you find
yourself in.
For example, you have three choices:
1. Get out of the mortgage business
entirely and find some other line of
work to generate an income for yourself and your family.
2. Approach your mortgage career with
half the passion and ability that you
are capable of.
3. Approach your mortgage career with
100 percent of the passion and ability
that you are capable of.
When Wall Street and the financial
markets were crumbling in the fall of
2008, Warren Buffett said that if he
had the money, he would spend $700
billion to bail them out (aka, invest in
their future). Incidentally, the U.S.
government was the only entity on
earth that had the kind of resources
needed to arrange a large scale
bailout. The government’s $700 billion bet is now paying off as Wall
Street firms are reporting record profits once again and repaying their government loans.
As the mortgage industry goes
through one turbulent change after
another, you are the only one who has
the kind of resources needed to bail
yourself out (aka, invest in your future).
You have a treasure chest of passion
within you. It is up to you on where and
how to spend it. Do you believe in your
own future as much as the government
believed in the future of Wall Street? If
so, invest all of your $700 billion of passion and ability in your own future and
you will reap the profits.
Let me ask you two questions:
1. When will people in the United
States stop needing to live in homes,
and when will they stop using mort-
gages to finance their house purchases?
2. When will people in the United
States stop needing to restructure their
personal finances and refinance their
mortgages?
If you can answer never to the two
questions above, you are a good candidate to invest 100 percent of your passion and energy into your career as a
mortgage originator. Remember the
three numbers we discussed in last
month’s column (“The Three Numbers
That Really Matter,” National Mortgage
Professional Magazine, October 2010
edition):
$6.96 trillion of home equity remaining in the U.S. equals plenty of people can still qualify for financing.
$1.56 trillion of mortgage volume in
2010; half the volume of the boom
years with half the competition
equals equal opportunity for you to
have a record year.
Four million housing units sold on
an annual basis in one of the worst
years on record equals one top producing Realtor is worth at least 32
annual referrals to you.
The bottom line is that it is 100
percent possible to make this the
best decade of your life, both personally and professionally. Don’t let
America’s lost decade become your
lost decade.
Gibran Nicholas is the founder and
chairman of the CMPS Institute
(CMPSInstitute.org—NMLS Provider
ID# 1400384). The CMPS Institute
administers the Certified Mortgage
Planning Specialist (CMPS) designation
and has enrolled more than 5,500
members since 2005. Through CMPS,
Gibran empowers mortgage professionals with confidence, unique knowledge,
and dynamic marketing resources to
simplify compliance, increase their
competitive advantage, and generate
more business. Visit Gibran’s blog and
Web site at http://gibrannicholas.com.
Visit
author
Gibran
Nicholas’s
blog
at
http://gibrannicholas.com
where he shares his insights
on economics, real estate and financial issues, including the current
mortgage and credit crises.
news flash
Eighty-eight percent of enterpriseacquired mortgages were fixed-rate
loans originated between 2001 and
2008 and ranged from 79 percent for
2004 originations to 96 percent for
2001 originations. Mortgages financed
with private-label MBS were predominantly adjustable-rate loans. These
loans comprised 70 percent of mortgages financed with private-label MBS
originated between 2001 and 2008 and
ranged from 53 percent of 2008 originations to 75 percent of 2004 originations. Adjustable-rate loans offer borrowers lower initial payments in return
for less certainty about future payments. In the data analyzed here,
adjustable-rate loans perform worse
than fixed-rate loans in part because
some originators of adjustable-rate
loans evaluated borrower repayment
capacity using artificially low rates,
called “teaser rates.”
Roughly five percent of GSEacquired, fixed-rate mortgages and 10
percent of GSE-acquired ARMs were
over 90 days delinquent at some point
before the end of 2009. Roughly 20
percent of fixed-rate mortgages and 30
percent of ARMs financed with privatelabel MBS were over 90-days delinquent at some point before year-end
2009.
For more information, visit www.fhfa.gov.
rent payoff of that mortgage. HR 6133
would also require lenders to respond
to consumer short sale requests within 45 days.
“The short sale, which requires
lender approval, is an important instrument for homeowners who owe more
than their home is worth,” said Vicki
Cox Golder, president of the National
Association of Realtors (NAR) and owner
of a real estate company in Tucson,
Ariz. “While the lending community has
worked to improve the size and training
of their short sales staffs, they still have
a long way to go on improving response
times.”
The bill has been referred to the
House Financial Services Committee for
consideration.
“Unfortunately, homeowners who
need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to
approve a short sale within a reasonable amount of time,” said Golder.
“Potential homebuyers are walking
away from purchasing short sale property because the lender has taken many
months and still not responded to their
request for an approval of a proposed
short sale price. Many consumers have
mentioned that the delay in short sale
price approval exceeds 90 days, and in
many cases never arrives.
New legislation
introduced to quicken
short sale time frame
Your turn
NMP News Flash column
Phone #: (516) 409-5555
E-mail:
[email protected]
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the target
issue.
Coming in 2011!
Nov. 1, 2010 credit report functionality was made available through the
NMLS. In the first two days, more than 23,000 individuals went into the system and completed the Identity Verification Process (IDV), which authorizes
the NMLS to send a credit report to the state regulator on their behalf. With
end of year license renewal and the state deadlines for credit authorization
approaching, it’s time to focus on these two obligations.
You can streamline the process by completing both the credit request and
annual renewal in one shot. It is critical to check with your individual state
to determine both deadlines for license renewal and credit report authorization, then simply combine the process. Go to www.mortgage.nationwidelicensingsystem.org, then go to the “MLO SAFE Requirements Compliance
Chart” and read the renewal and credit report authorization deadlines carefully. It is different for every state and it’s your responsibility to know the
deadlines.
How to authorize credit
Even if you have previously provided credit authorization to your state, you
are required to complete the process again through the NMLS. Go to the NMLS
Resource Center and click on “Credit Report” for MLOs. The credit report fee
is $15 and the NMLS pulls a single bureau TransUnion Report with Vantage
Score. This is a soft pull and will not affect your credit score.
Your company can submit a credit report request on your behalf or you
can do it yourself. Either way, you must first complete the IDV process in
which you are asked a series of questions regarding your credit history, then
you attest to the filing prior to paying for the credit report request.
SAFE Smart credit request
There is no national automated standard or minimum credit score required.
The SAFE Act leaves determining the financial responsibility of licensees up
to each state regulator. If you are concerned about your credit, go to www.annualcreditreport.com, request a copy of your TransUnion Report, and begin
cleaning up any derogatory marks. Remember: Know your deadlines because
it’s time for you to authorize credit when your credit is due.
Paul Donohue, CRMS is a 23-year industry professional and founder of Abacus Mortgage
Training and Education. Paul served on two NMLS working groups, establishing the new
national education protocols. Go to AbacusMortgageTraining.com to find out more
about your obligations for testing, education and licensure, or call (888) 341-7767.
19
NOVEMBER 2010
PROFESSIONAL .TV
Streamline the process: Know your deadlines
MORTGAGE
The SAFE Act mandates that a mortgage loan originator (MLO) must continuously demonstrate the financial responsibility, character and fitness such as
to command the confidence of the community. The new standard requires
you to submit to a review of your credit. Beginning Oct. 31, 2010, every state
licensed MLO shall furnish to the Nationwide Mortgage Licensing System and
Registry (NMLS) authorization to obtain a credit report.
Because of declining commissions throughout 2009, the credit rating of
many originators has taken a major hit. Some are worried about losing their
license upon review of their consumer report. Most state regulators are reluctant to take away someone’s livelihood solely because of credit. If your
credit score has dropped, include a letter of explanation with your annual
renewal. Provide good reasons why you can still command the confidence of
the community and you may get credit when credit is due.
Legislation has been
introduced that would
require lenders and servicers to hasten the time it takes to
approve or disapprove a short title or
short sale. HR 6133, the Prompt
Decision for Qualification of Short
Sale Act of 2010, co-sponsored by U.S.
Reps. Robert Andrews (D-NJ) and Tom
Rooney (R-FL) is designed to assist
homeowners who are underwater on
their mortgages and have a buyer
reader to purchase the house at a
price which will net less than the cur-
invites you to submit any information on
regulatory changes, legislative updates,
human interest stories or any other
newsworthy items pertaining to the
mortgage industry to the attention of:
Credit When Credit Is Due
value nation
20
cases where the reviewer disagrees with
the appraisers opinion of value.
When is it appropriate to use the
desk review as an appraisal evaluation
tool? This question could be somewhat
open-ended like the one about how
long a man’s legs should be. We have
all heard that a man’s legs should be
long enough to reach the ground. The
answer, concerning the use of the desk
review, may be similar. When the desk
review should be used is unique to the
situation. It is the middle ground in
the review-appraisal toolbox, more
comprehensive than an electronic
review and less thorough than a field
review. Some lenders use it as a second
line of defense, when the electronic
review indicates a need for more
review of a given appraisal. While this
is probably the most used avenue to
the desk review, it is, by no means, the
only way to come to the conclusion
that a desk review should be performed. Institutions subscribing to a
higher level of quality control may
require a desk review on all appraisals
prior to the closing of a loan.
Issues, such as cost, also enter into
the mix, concerning if and when an
appraisal review should be ordered for
a particular transaction. Desk review
cost is moderate, typically between
$100-$200, perhaps somewhere in the
neighborhood of half the cost of an
appraisal.
The desk review is covered in
Uniform Standards of Professional
Practice (USPAP). Under USPAP, the
reviewer must, when providing a review
without a reviewer’s value opinion,
state and/or identify the client, the
users, the purpose of the review, the
work under review, the date of the work
under review, the effective date of the
opinions and conclusions, the name of
the appraiser performing the appraisal,
the effective date of the appraisal
review, all extraordinary assumptions
and hypothetical conditions, how these
assumptions and conditions affect the
results, scope of the work, reviewer
opinions and conclusions and include a
signed certification.
Yes, as with all review tools, the desk
review is not without its shortcomings.
These include, in some cases, a lack of
independence and the possibility of
reviewer bias, as well as the absence of
a subject property and/or a comparable-sales inspection. These issues, within themselves, do not mean that a credible desk review cannot be performed
most of the time, however, consideration must given to these weaknesses in
the product when other review tasks are
contemplated.
In reflecting upon the benefits
offered by the desk review, one
would not want to ignore the importance that the human element offers.
There is little substitute for logic and
reasoning provided by a human over
that of an electronic review system.
Having said that, the reviewer typically has not actually inspected the subject and comparable properties, as
would be the case with a more comprehensive appraisal review. The desk
review is a viable option for lenders
requiring a middle ground analysis of
an appraisal.
It should be further noted that there
will be times when the desk review
proves to be inadequate. In such cases,
a more comprehensive appraisal review
will be required. There is no substitute
for competent and experienced management overseeing and interpreting
the results of a desk review. Institutions
not having qualified in-house support
for this function should consider the
possibility of employing experts in this
field or outsourcing this function to a
reputable appraisal review firm.
Charlie W. Elliott Jr., MAI, SRA, is president
of Elliott & Company Appraisers, a national real estate appraisal company. He can
be reached at (800) 854-5889, e-mail [email protected] or visit his company’s
Web site, www.appraisalsanywhere.com.
WE DELIVER A BETTER AND
A MORE PRODUCTIVE EXPERIENCE!
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FIT for Reverse Mortgage Lenders:
Part III
Why lenders must be FIT smart
Immediate needs drive most reverse
mortgage lending. Everyone knows that.
What everyone may not know is that
lending to meet immediate needs could
be very risky for seniors and for lenders
without good intelligence about seniors’
long-run needs and goals.
The newly-mandated Financial
Interview Tool (FIT) is about digging a
little deeper for better home equity
conversion mortgage (HECM) prospect
intelligence to inform the lending decision-making. This critical insight persuaded the U.S. Department of Housing
& Urban Development (HUD) to impose
the National Council on Aging’s
(NCOA’s) innovations in the new HECM
counseling protocol.
Why should reverse mortgage
lenders care about FIT (after all, it is a
counseling mandate)? Two words:
Intelligence and understanding.
To help seniors make better HECM
decisions, lenders need to be better
informed about seniors, and FIT provides that extra intelligence.
Since Sept. 11, 2010, every HECM
prospect counseled is given a FIT summary printout, which shows “yellow
flag” issues (risk factors) raised in counseling and their implications for a borrower to “fully benefit from a reverse
mortgage.”
Lenders can use these yellow flag
issues as cues for questions and conversation with prospects. Let’s look at a
yellow flag: Living alone.
This factor could prompt questions
such as:
How much help do you have with
your daily activities, Mrs. Akuna?
Who can you call when your health
changes suddenly?
How lonely and isolated do you feel?
actappraisal.com
(888) 377-8901
One implication for a live-alone person is that they may be too dependent
on the reverse mortgage cash to pay for
services freely available to seniors with
spouses, partners, neighbors or relatives.
As NCOA’s Barbara Stucki said, “By
themselves, each of these issues may
not be a risk, but they can add up.”
Add poor health to living alone,
and you have prospects whose financial needs may outrun their expectations, thus hurting their ability to
meet borrower obligations such as
paying property taxes, buying homeowner’s insurance and maintaining
the home.
FIT could also help lenders manage
reputation, litigation and financial risks
by giving them early warning and
opportunities to manage risks upfront.
For example, a FIT report might flag
poor health; more conversation might
uncover mental health issues. If they
are matters involving the senior’s decision-making capacity, the lender could
(and should) work with counselor to
refer the prospect to mental health professionals.
A HECM lender’s failure to spot a coborrower’s mental health problems
caused a New York Supreme Court
Judge to void a reverse mortgage in
December 2009 (The Doar Matter).
Before you say, “Wait a minute. This
is not fair. We are lenders, not psychiatrists!” Here are the judge’s words:
“…the burden of knowledge … must be
shifted to the mortgagee [lender] when
dealing with a reverse mortgage.”
To carry this burden of knowledge
(knowing the reverse mortgage borrower holistically), lenders and their loan
officers must understand seniors.
Questions, conversation and interactions are more reliable means of knowing customers. No quantitative technology (the idols of lending) can alter this
fact.
For 21 years, the industry lived
under the delusion that it understands
seniors and their needs. Lenders and
loan officers told themselves that “All
Professional Servicing Companies:
The Key to Seller Carry-Back
Loan Survival
By Drew Louis
As you may have noticed, most of the
risk falls on the seller. But so do most
of the rewards. Minimizing the risks,
or eliminating them all together,
could lead to a very safe and profitable investment for the seller, a new
home for the buyer, and a sale that
otherwise may have never happened
for the agent.
A professional servicing company
can offer full document disclosure,
review the terms of the loan, service
the loan, collect impounds for property taxes, Homeowners Association
(HOA) fees and insurance, and even
pay the senior lien from the buyer’s
monthly payment to assure it is being
paid in a timely manner. All of these
services help minimize or even extinguish most of the risks involved with a
carry-back loan.
Full disclosure is extremely important in today’s economy. More than
ever before, lenders have been forced
to enforce rights and penalties, which
need to be clearly stated and understood by the borrower. Electing to use
just a simple note and deed could
leave the seller in front of a judge
without the necessary proof that they
properly disclosed all that they should
have … that’s a huge risk.
Employing a professional servicing
company not only protects the seller’s
investment, it can help structure it, as
well. Whether the seller wants to
obtain a lump sum in the near future
or collect monthly payments for the
long term of the loan, a professional
servicing company can help strategize
the best possible terms of the note
and then enforce them. The servicing
company can also help find buyers for
the note when the seller wants to
obtain cash.
What many sellers and agents forget
when discussing the possibility of
owner financing is the tedious act of
actually servicing the loan. The seller is
on the hook for accurately calculating
interest and principal, keeping track of
payment history, issuing federal and
state tax forms and many other timeconsuming tasks. It’s not just sending a
bill and collecting a check.
In fact, part of the reason the seller
carry-back loan has developed a bad
reputation and has died out in the past
is because agents are not around to
help the seller figure out what to do
when the buyer misses a payment.
That would not be an issue with the
help of a professional loan servicing
company. All of the servicing needs of
the loan can be taken care of for as little as $15 per month. The buyer and
seller can have a go-to resource for
questions for the duration of the loan;
and the agent gets positive remarks for
a successful transaction.
The revival of owner financing is a
second chance for agents to get it right,
sellers to take advantage of an opportunity to establish a monthly cash flow,
and for buyers who have been denied
by the banks to purchase a home.
Employing a professional servicing
company brings the carry-back loan
one step closer to infinite survival.
Drew Louis is president of Del Toro Loan
Servicing Inc. He has been successfully
servicing loans since 2003 and has more
than 20 years of experience in the financial services industry. For more information, call (619) 474-5400 or visit
www.deltoroloanservicing.com.
21
TThe
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marrter Way
Way to
to Borrower.
Borrowerr.
NOVEMBER 2010
www.homeownershipaccelerator.com
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a celer
rator.com
fail to keep the property insurance
Seller carry-back loans have been growor taxes current.
ing in popularity since mortgage companies have tightened the noose on poten- A lack of tools to verify the buyers’
application information can open
tial borrowers. As even some of the most
the doors to fraud. If the buyer is
creditworthy applicants are being turned
deceiving the seller, there is more
away by mortgage giants and banks, sellof a chance it will go undiscovered
er carry-back loans are once again
until it is too late.
becoming a realistic alternative to traditional mortgages.
Buyer risks
Seller financing made
If the seller does not own
up 1.3 percent of sales in
the property free and
California last year, up
clear, there is a chance
from 0.4 percent in 2007,
they could default on
according to a survey of
the senior mortgage,
members of the California
possibly sending the
Association of Realtors
property into foreclo(CAR). That’s a fair increase
sure. Having the payover two years, but it
ments made by the
could be so much more.
buyer directed to the
There is a huge pool of
senior lien through a
buyers out there that
“What many sellers
bona fide servicer can
could benefit from the
and agents forget
eliminate this potential
carry-back loan, but have
when discussing the
problem.
not been approached with
If the seller decides to
the idea because agents
possibility of owner
finance the buyer for a
either do not believe in it
financing is the
short period of time,
or they just don’t under- tedious act of actualthen the buyer will
stand it. Buyers are losing
ly servicing the loan.”
need to refinance at the
a chance to purchase a
end of the term and
home, sellers are losing a
chance to sell and agents are losing out pay off the balance. If the buyer cannot
qualify for a refinance, they can be
on business.
By properly utilizing and understand- foreclosed on by the seller.
ing the carry-back loan, everyone can be
a winner. However, before that can hap- Positives for buyers and
pen, all parties need to understand the sellers
risks involved, and more importantly, The buyer is able to get a home
despite their credit history.
how to reduce those risks and even
sometimes eliminate them by hiring a The seller can set the demands of the
note and establish a monthly cash flow.
professional loan servicing company.
The seller will likely get asking price
or better for the property because
Seller risks
carry-back loans open the door for
The biggest risk for the seller is the
more potential buyers.
potential for the buyer to default on
the loan. The reason most buyers are Closing time is significantly reduced;
a carry-back loan could close in as
in the market for a carry-back translittle as two weeks.
action is because they are unable to
obtain a mortgage through tradition- There can be a tax deferral for the
seller when they report under the
al means. Often, their credit scores
Installment Sale Method.
are low and they have a limited
Should the seller ever want a lump
amount of income and credit.
sum, they can sell the note to an
Seller carry-back loans are often secinvestor for cash today rather than
ond position or junior liens. The
collect payments over a time period.
buyer’s mortgage with the bank may
be in first position and have the first If the buyer does default, the seller
could “re-own” the property at the
right to any funds obtained through
sales price LESS the downpayment.
a foreclosure or sale. This means the
Having intimate knowledge of the
carry-back loan could be completely
property, this could be a risk worth
wiped out should the property go to
taking.
foreclosure.
The seller is not only “The Bank” in Banks are paying very low interest
on depositor’s money. A lump sum
the transaction, but also “The
sale poses the dilemma of where to
Servicer.” The interest, principal and
invest the proceeds: The stock marbalance of the loan must be tracked
ket, more real estate, a savings
and recorded accurately. This can
account? Current interest rates on
become a huge headache should the
carry-back loans are very attractive.
Borrower start missing payments or
How a professional
loan servicing company
can help
UFMIP refunds
FHA Update on CLTV Changes
and UFMIP Refunds
CLTV changes
22
In the Federal Housing Administration’s (FHA) recent Mortgagee Letter 10-36,
published in late October, the requirement that the combined loan-to-value
(CLTV) ratio not exceed the FHA geographical loan limit for both purchases and
refinances was eliminated. As this is a change that will affect only a small percentage of the FHA loans being originated, I debated as to whether or not I
should spend time clarifying this new guideline. In the end, I reasoned that
since in some markets this will make a difference to a home owner, mortgage
loan originators (MLOs) should be informed and clearly understand what this
FHA update states.
The wording FHA used in this Mortgagee Letter was potentially confusing. To
sum it up, here’s what you need to know: The CLTV cannot exceed the applicable
LTV for your loan program, but it can exceed the geographical loan limit as long
as the FHA first does not.
For example, in Lexington, Ky., the maximum FHA loan amount is $271,050.
Let’s say you have rate and term refinance of a first mortgage with a balance of
$265,000 along with a re-subordination of a second mortgage with a balance of
$15,000. The home in this scenario has an appraised value of $288,000. Provided
the borrower meets all other criteria, this scenario would meet the new guidelines because: Although the total of both loans ($280,000) exceeds the geographical limit if $271,050, the FHA first is below the geographical limit and the combined LTV is 97.2 percent (which is below the allowable maximum LTV of 97.75
percent for rate and term refinances).
Since the new mortgage insurance premiums (MIPs) are in effect as of Oct.
4, 2010, many MLOs are asking what will happen to the excess premium on
a streamline refinance, since the new Upfront Premium is now one percent
of the loan amount. The recent ML 10-28 that gave us the new premiums
states: “The cancellation policies defined in Mortgagee Letters 2000-38 and
2000-46 remain unchanged.” To refresh your memories, ML 2000-38 reduced
the refund period from seven years to five years and ML 2000-46 stated: “…
If the refund amount exceeds the new upfront premium, the excess will be
sent directly to the borrower from the U.S. Treasury using FHA’s disbursement process.”
I contacted the U.S. Department of Housing & Urban Development (HUD)
personally on this refund question, and they responded by saying that:
“Currently, if excess unearned premiums remain after netting of the refund to
the new case number, then the funds are refunded to the borrower. However,
FHA is examining this process and may make changes in the future.” The last
part of this statement tells us that the FHA is looking for a way to change the
guidelines allowing them to reduce the amount of the refund to the borrower. These refunds can be very substantial especially for the high-cost areas.
Take a $500,000 FHA loan in California that closed in May 2010, where the
borrower paid a 2.25 percent premium in the amount of $11,250 and now
they want to do a streamline refinance. The refund they will receive for a
December closing will be, according to the chart below, 83 percent of the original premium, which is $9,337. In this example, the new premium of one percent will be $5,000, so they will receive a refund of $4,337 after collecting the
new premium at closing.
The cash back opportunity
Do try to take advantage of this opportunity, before the FHA finds a way to
take the refunds away! Most MLOs are analyzing their FHA streamline opportunities from a payment reduction perspective and haven’t considered this
FHA guideline as an incentive for homeowners to refinance! Go back through
your closed pipeline and review streamlines from this refund perspective.
Contact your clients who may not be saving as much as they would like to on
the payment, but stand to get a nice refund. In effect, this is like a cash-out
refinance opportunity. Presenting the proposed loan to your client in this way,
it makes a lot of sense (and dollars!) … even if the savings on the payments
are not substantial.
Go FHA!
Jeff Mifsud is founder of Michigan-based Mortgage Seminars LLC, a former FHA
underwriter with 15-plus years of experience originating FHA loans, an FHA
expert for LoanToolbox.com and creator of The FHA Originator, a monthly FHA
newsletter. Jeff may be reached by phone at (248) 403-8181 or visit
www.MortgageSeminars.com.
Upfront Premium Refund Factors
Match Month & Year Since Closing To Determine Refund Rate
Month of Year
Year
1
2
3
4
5
6
1
0.9750
0.9500
0.9250
0.9000
0.8750 0.8500
2
0.7333
0.7167
0.7000
0.6833
3
0.5333
0.5167
0.5000
4
0.3333
0.3167
5
0.1625
0.1500
7
8
9
10
11
12
0.8333 0.8167
0.8000
0.7833
0.7667
0.7500
0.6667 0.6500
0.6333 0.6167
0.6000
0.5833
0.5667
0.5500
0.4833
0.4667 0.4500
0.4333 0.4167
0.4000
0.3833
0.3667
0.3500
0.3000
0.2833
0.2667 0.2500
0.2375 0.2250
0.2125
0.2000
0.1875
0.1750
0.1375
0.1250
0.1125 0.1000
0.0833 0.0667
0.0500
0.0333
0.0167
0.0000
Social Media: Take Two Breaths
and E-mail Me in the Morning
By Andrea Obston
you need to work with seniors successfully is trust.” While trust is important
in working with seniors or non-seniors,
earning someone’s trust is not the same
thing as understanding them.
For the first time in the industry’s
21-year history (thanks to NCOA and to
HUD), counselors are being required to
make the effort to understand seniors
and all their needs. It is a game changer. It is a good thing. Wise lenders will
get the message and adopt FIT-like
processes to capture more prospect
intelligence and make better reverse
lending decisions. Others will whine
about “over-regulation” and return to
business as usual.
Could it be that a scathing U.S.
Government Accountability Office (GAO)
report to Congress on HECM counseling
last June and the Doar decision drove
HUD toward FIT and other tighter rules
in the new HECM protocol? Lenders
ignore these developments at their
peril.
Call it Atare’s first law of reverse
mortgage lending: Know your borrowers beyond immediate needs. If you do
not, courtrooms and newspapers’ pages
could be very expensive places to find
out.
“Call it Atare’s first law of reverse
mortgage lending: Know your borrowers beyond immediate needs.
If you do not, courtrooms and
newspapers’ pages could be very
expensive places to find out.”
Atare E. Agbamu is author of Think
Reverse! and more than 140 articles on
reverse mortgages. Since 2002, he writes the
nationally-distributed column, “Forward on
Reverse.” A former director of reverse mortgages at Minneapolis-based AdvisorNet
Mortgage LLC, Agbamu has years of handson experience marketing and originating
reverse mortgages. Through his advisory,
ThinkReverse LLC, Agbamu advises financial
professionals, institutions and regulators
across the country. In a 2007 national
report on reverse mortgages, AARP cited
Agbamu’s work. He can be reached by
phone at (612) 203-9434 and e-mail at
[email protected].
Visit author Atare E.
Agbamu’s blog at thinkreverse.com for his thoughts
and insights on the reverse
mortgage marketplace.
23
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Equal Housing Lender; Franklin American Mortgage Company Inc. 501 Corporate Centre Drive Suite 400 Franklin, TN 37067. NMLS ID 1599. For mortgage
banking professionals only; not authorized for distribution to consumers. 10/27/10 G101027AD
www.sierrapacificmortgage.com
Booth #311
NOVEMBER 2010
5627-10/10
WHOLESALE LENDING
www.LoanKinection.org
Okay, enough of Marketing 101. What
If you are feeling guilty, outdated or
downright dowdy because your business about this crazy idea of social media? Let’s
is not using social media, consider this start with a definition: Social media is Webcolumn your safe island in the storm. based communications which seeks to set
“Just do it” may work for Nike, but it has up a conversation; a relationship. They are
interactive, personal and something that
no place in your marketing efforts.
The mere size and speed of social net- people invite into their lives. Contrast that
working has made everyone sit up and with advertising which essentially intrudes
take notice. The mantra, “If Facebook were into your customers’ lives. Think about it
… people turn to their
a country it would be the
Facebook page as an activiworld’s third largest” is
ty. Ads interrupt an activity
enough to make any busi(say reading the newspaper)
nessperson’s heart beat
to deliver their message. So,
quicker. Or consider this …
if you’re interested in really
a recent Consumer Reports’
maintaining or creating a
“State of the Net” survey
dialogue with customers
said that “…two out of
and prospects, then social
three online U.S. housemedia—be it a Facebook
holds use social networks
fan page; a You Tube
such as Facebook and
Channel, or a blog—may
MySpace, nearly twice as
be for you. Use them to
many as a year ago.”
offer practical advice that
Feeling the old guilt about
“Think of the social
your customers will want to
missing the boat creeping
media world as one
read and pass along, such
into your brain? Stop it! I
giant cocktail party.
as tips on dealing with
promise this will be a guiltsome of the problems your
free read. So continue on When you go to such
functions, who do
product solves. Businesses
without fear.
that use social media to talk
If you get nothing else you end up spending
about themselves (“We had
from this column, take this
your time with? The
50 people here for a terrific
one thought: Just because
person who offers
sale on Wednesday”) offer
a marketing tactic exists, it
you an interesting
nothing that anyone would
doesn’t mean it’s right for
conversation or the
want to pass along. Before
your business. Social media
you post that blog or tweet
is one of many ways to one who assaults you
that tweet, ask yourself, “Is
reach your customers. with diatribes about
themselves?”
this something someone
Some have been around
would want to share with a
since the 1920s, when
young Allen Odell convinced his father to friend?” If the answer is “yes,” tweet away.
allow him to put up small wooden road- If it’s “no,” then tell your mother. As with
side signs to pitch their product, Burma any marketing effort it’s not about what
Shave. And some were invented within you want to say, it’s about what your custhe last few years like blogs, Facebook tomers want to hear.
Think of the social media world as
business pages and You Tube channels.
They all work in some form or another. one giant cocktail party. When you go
But they won’t necessarily drive the right to such functions, who do you end up
customers to your bottom line if they spending your time with? The person
don’t suit your marketing objectives and who offers you an interesting conversatheir needs. The real bottom line here is tion or the one who assaults you with
that any marketing effort starts with the diatribes about themselves?
So, here are a few tips on whether or
answers to a few key questions:
not social media is for you:
Who are your most profitable customers?
What do they want from your business? Do you or someone on your staff
have the time to devote at least five
How do you deliver it?
hours a week (throughout the week)
Why would they come to you
to updating and monitoring social
instead of your competitors?
media?
Where do they go for information
Do you have access to a 20-year-old
before they buy?
who can do this for you, has exist How can you make them into loyal
ing experience on the Web and can
customers who come back and send
be trained on what you offer well
in their friends?
enough to essentially hold social
media conversations about your
Essentially, I am asking you to decide
business?
who you are, who you want to be in the
eyes of your customers and how you can Do you currently participate in
social media and enjoy it?
deliver what they want. Once you know
that, you can be a more intelligent marketer on all fronts.
forward on reverse
take two breaths
Do you cater to the kind of customer
who can answer yes to the question
above?
Do you understand that your picture
of the average social media user
may be way off?
A few facts here:
The average user of social media
such as Facebook, LinkedIn or My
Space is more affluent and more
urban than the average American,
according to Nielsenwire.
A profile of users of social media
from a site called Royal Pingdom
tells us:
Those 35 to 44 dominate users of
social media.
The average social network user is
37-years-old.
LinkedIn, with its business focus, has a
predictably high average user age; 44.
The average Twitter user is 39-years-old.
The average Facebook user is 38years-old.
The average MySpace user is 31years-old.
So what do you do next? Before sub-
scribing to the “Just Do It” principle, I
suggest you do two things:
1. Look long and hard at the customers
you want and how they use social
media; and
2. Become more literate about the creative uses of social media. Start by reading two wonderful blogs: Mashable and
FreshNetworks. Get smarter; get more
comfortable with your choices and get
going in the way that best suits your
business.
Countdown To Buy
launches private label
No guilt … no worries … just bot- solution
tom-line communications. However
that looks.
Andrea Obston is president of Bloomfield,
Conn.-based Andrea Obston Marketing
Communications LLC. The firm’s expertise
includes strategic marketing audits, brand
development and marketing, public and
media relations, media training, Web sites
and Internet advertising. Its subsidiary,
Andrea Obston Crisis Management
(www.crisismasters.com), provides public
image crisis planning and management.
She may be reached at (860) 243-1447 or
e-mail [email protected].
NAMB WEST ONLY!!
24
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Errors & Omissions
800-958-BOND
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and register to take the free
Military Family Housing
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Countdown To
Buy, an online
real estate marketplace, has announced the launch of
“powered by Countdown To Buy,” a private label solution featuring the company’s online offer management and
negotiation platform. Being “powered
by Countdown To Buy” enables institutions and real estate companies to
leverage their existing brand, while taking advantage of the benefits offered by
Countdown To Buy’s trusted platform
and hosted solutions.
In conjunction with the launch,
Countdown To Buy has entered into an
agreement with Diamante Cabo San
Lucas, a high-end golf resort featuring
some of the most spectacular properties the world’s golfing community has
to offer. The site went live on Sept. 20,
2010, and the first set of properties
ranging from $250,000-$2.2 million can
be viewed at http://diamante.countdowntobuy.com.
“We are excited to see the marketplace realization of Countdown To
Buy’s effectiveness in serving any transaction, whether it is a traditional, REO,
short sale, or now a specialized resort
sale,” said Tom Furey, managing partner of Countdown To Buy. “Both
Countdown To Buy and Diamante Cabo
San Lucas strongly believe our core
principles of a fair, trusted and transparent transaction, are the foundation
of any buyer-seller relationship.”
Countdown To Buy’s online real
estate marketplace allows qualified
homebuyers to purchase properties
through an offer management platform
that automatically reduces the price
one percent per day until an offer
meets or exceeds the daily price.
For more information, visit www.countdowntobuy.com.
First American Title
Insurance launches new
Mortgage Services Division
• Daily updated mortgage industry news
• Industry blogs
• Write your own blog
• Find loan programs
• Discover local and national events
• Get access to video
First American Title Insurance Company
has announced the launch of its new
mortgage services division, which is
designed to address the title, settlement
and valuation needs of residential origi-
nators with national retail platforms.
First American Title’s Mortgage Services
Division supports many of the nation’s
largest financial institutions in pursuing
a national strategy for residential origination that focuses on speed, efficiency, customer satisfaction and cost
reduction by providing custom closing
solutions, leveraging the strength of a
national underwriter, applying proprietary technology and tapping into the
extensive resources available within the
First American family of companies.
First American Title’s Mortgage
Services division will replace two legacy divisions of First American Title
Insurance Company: National Lenders
Advantage and Equity Loan Services,
both of which have been collectively
serving the residential lending market
since 1983. Over the next year, all
National Lenders Advantage and Equity
Loan Services operations and technologies will transition to First American
Title’s Mortgage Services division.
In addition to a business strategy
focused on the distinct objectives of
each residential originator, Pat
McLaughlin, division manager of First
American Title’s Mortgage Services division, said: “First American understands
that mortgage originators need more
than a central point of contact to be
competitive in a volatile market. We’ve
listened closely to our clients and
invested in the technology, personnel
and infrastructure that our organization needs to support complex relationships with top national lenders. Our
newly formed division better represents
us as an innovative company with the
capacity and experience to successfully
deploy cost- and risk-reduction solutions for the mortgage industry.”
Robert Camerota, head of division
operations of First American Title’s
Mortgage Services division, said: “Service
is not only one of our core values, it’s
also what separates First American Title
Insurance Company’s Mortgage Services
division from other providers. Because
we recognize that every touch-point
throughout the mortgage closing
process is important, our employees are
committed to delivering a superior experience on every transaction for both the
mortgage lender and their customers.”
For more information, visit www.famortgageservices.com.
Scenes From the MBA’s
97th Annual Convention & Expo
October 24-27 at the Georgia World Congress Center in Atlanta
Photo credit: Lauren-Ashley Luesing
By Tommy A. Duncan, CMT
Chip Langley, CRMS; Thomas F. Duncan and
Tommy A. Duncan, CMT of Quality Mortgage
Services LLC were on hand to discuss
implementing quality control plans
Greg Schroeder from
Comergence Compliance
Monitoring in Orange, Calif.
was on hand to detail his
company’s product offerings
Patrick Wolohan, Kris Barnes, Carson Mullen, Kat Ebeyer,
Kelly Taylor, Jim Anderson and Tom Hurst proudly represent
StreetLinks National Appraisal Services
Sponsored by
NOVEMBER 2010
Mark Sike and Melissa Sike from
Credit Plus Inc. on the exhibit
hall floor of the Georgia World
Congress Center in Atlanta
Allen Johnson, Stephen Crowley and Grady
Petty from Advanced Data were on hand for
the MBA’s 97th Annual Expo to share
information on their company’s product
offerings
Tommy A. Duncan, CMT is executive vice president of Quality Mortgage Services LLC. For answers to your QC and FHA questions, please contact Tommy at
(615) 591-2528 or e-mail [email protected]. You may also visit Quality Mortgage Services LLC on the Web at www.qualitymortgageservices.com.
25
The crew from a la mode inc. shows their support at the MBA Annual
Convention, (back row): Nick Solis, Chris Sullivan, Leonard Acquaye,
Jennifer Miller, Scott Kinnard, Molly Dowdy, Brad Eaton, Jason Dowdy
and Joe Buell, with (front row): Amanda Meredith, Christina Davidson,
Whitney Glass, Stephanie Wilder and Lacey Beardon
Credit unions have the highest loan quality so far in 2010, based on postclosing quality control audits performed by Quality Mortgage Services LLC
(QMS), a national compliance solution provider. In the study by QMS, nearly
50 percent of credit union loans are rated as “Excellent” whereas 34 percent
of bank loans were ranked “Excellent” and non-bank loans ranked 22 percent
in the “Excellent” category. These loans were audited for federal regulatory
audits, credit and collateral analysis, and mortgage fraud.
Non-banks took the lead in the “Good” ranking, where nearly 61 percent
of the loans had minor loan defects, but were very marketable on the secondary market. Banks ranked at 56 percent and credit unions ranked at 43
percent.
For the credit unions to score so well in the “Excellent” ranking, there is
a noticeable difference in the credit scores and ratios. The average credit score
coming from credit unions in 2010 is 761, whereas in 2009, the average credit
score was 772. Banks averaged a score of 755 for 2010 and 2009. The nonbank credit score average came in at 737 for 2010 and 722 for 2009. Credit
unions maintained a high credit score average of 761 for loans that ranked
“Good” in 2010, while banks and non-banks had an average credit score of
736 and 710, respectively, in the “Good” category.
When analyzing the percentile of pooled loans for purchase on the secondary market, credit unions and banks ran very closely at 92.17 percent and
91.13 percent respectively of loans with low loan defects. Non-banks had
83.03 percent of mortgage loans with low loan defects, which is the same
percentile for 2009.
The credit union average back ratio is another measurement that sets
the credit union’s loan quality apart from the other lending institutions.
The average back ratio for credit unions in the “Excellent” category currently came in at 33 percent where banks had an average of 36 percent and
non-banks had 35 percent average for back ratios. In the “Good” category,
credit unions maintained the lead with an average of 34 percent, banks
were at 36 percent and non-banks had a 41 percent back ratio average.
Credit union borrowers are financially a stronger borrower based on the
results of post-closing audits.
Credit unions and banks are very close in their averages for potential repurchases. Credit unions had a 7.09 percent ranking in the “Fair” category
where loan defects may warrant a repurchase claim. Banks had a 7.78 percent
“Fair” ranking and non-banks had a 14.21 percent loan defect ranking as
“Fair” that may provoke a repurchase.
When it comes to fraud for housing, credit union had a 0.75 percent ranking in the “Poor” category, banks had a 1.10 percent ranking and non-banks
had a 2.76 percent ranking. This “Poor” category is where fraud for housing
was discovered during the post-closing audit. The “Poor” category has nothing to do with a loan in default, but a ranking where the loan should have
never been made.
In our second annual “40 Under 40” feature, you will find a list of the top
mortgage professionals under the age of 40, as voted on by their peers, who
exemplify professionalism and top production in today’s housing market.
Despite the rough waters of the U.S. economy and the ever-shifting landscape known as the mortgage industry, these 40 individuals have persevered
in a time of great uncertainty.
In assembling this list, we at National Mortgage Professional Magazine
took some criticism when we began this endeavor. Many felt a list of this
nature ignored many, and others felt that a list of this type is a “thing of the
past,” while some even cited age discrimination, but we firmly stood by our
decision to assemble this group. Like their industry pioneers before them,
these individuals are the ones who carried the torch of professionalism in
the year 2010, fighting the daily barrage or regulatory and legislative pressure and negative coverage by the mainstream media as the culprits for the
collapse of the U.S. economy. However, they forge forward, as they continue to lead by example and set the bar for education, professionalism and
excellence in the mortgage industry.
We’d like to congratulate all of the following individuals named to our “40
Under 40” list—in no particular order but alphabetical—and thank all the
nominees for their participation in our second annual “40 Under 40: The 40
Most Influential Mortgage Professionals Under 40” feature.
Timothy Baise
Top Flite Financial
President and Chief Executive Officer
26
As president and chief executive officer of Top Flite Financial, an
Inc. 5,000 company, Timothy Baise, CMC has been changing the
lending industry, one person at a time, by being and staying in
compliance with state and federal laws. While riding the edge or
operating in grey areas may make for more short-term income, riding the
straight and narrow line will produce long-term relationships, solid results and
a permanent home for its employees and that is exactly what Timothy has done
with Top Flite Financial. While most lending companies are downsizing or closing their doors altogether, Top Flite Financial has been increasing its revenue
and has expanded its operations through the toughest economic times the mortgage industry has ever seen, all this under the direction and leadership of
Timothy.
Raymond Bartreau
Best Rate Referrals LLC
Chief Executive Officer and Founder
Raymond Bartreau is chief executive officer and founder of Best
Rate Referrals LLC in Las Vegas, Nev., a marketing company specializing in the mortgage industry. In 2010, Best Rate Referrals
was named one of the fastest-growing companies in the country.
Don A. Blaize
Franklin American Mortgage
Mortgage Specialist
Don A. Blaize, mortgage specialist with Franklin American
Mortgage, has demonstrated his ability to be a leader within his
community and state through his involvement with the
Mississippi Association of Mortgage Brokers (MAMB) following
Hurricane Katrina. Don has been involved with local organizations to promote
homeownership in his respected community.
Joe Bowerbank
Loan-Score Decisioning Systems
Senior Vice President of Marketing and
Strategic Alliances
Joe Bowerbank has more than 15 years of marketing management experience in the technology and mortgage banking sector, helping to launch marketplace solutions, grow organizations, obtain technology adoption and build brands. He is a company-building
marketing professional who understands what it takes to catapult growing
ventures to the next level. Currently, Joe is the senior vice president of marketing and strategic alliances at Loan-Score Decisioning Systems, an Irvine,
Calif.-based AUS vendor. Before joining Loan-Score, Joe was the vice president
of marketing at Portellus Inc. Prior to Portellus, he headed marketing strategy at Commerce Velocity Inc., a mortgage AUS vendor, and prior to his time
with Commerce Velocity, Joe was the director of marketing and market adop-
tion at Electronic Distribution Networks Inc. (EDN), a software communications provider serving multiple vertical markets. Joe sits on California State
University, Fullerton’s UEE Advisory Board for their sales and marketing program course development.
Chris Brown
Certified Mortgage Planners
Mortgage Loan Originator
Chris Brown, a mortgage loan originator with Certified Mortgage
Planners, is changing the landscape of what a mortgage professional is and does. He is actively involved as an advocate for the
mortgage industry through serving his fellow loan officers
through the Mortgage Revolution, but he is also fully engaged with serving agents
through REBar Camps, establishing Mastermind Groups, and coaches agents to
help their marketing and business development.
Douglas Calabrese
Terrace Mortgage Company
Regional Operations Manager
Douglas Calabrese is the regional manager for Terrace Mortgage
Company in Tampa, Fla. where he oversees compliance and
implements guidelines with varying investors and agencies. In
addition to his full time position at Terrace Mortgage as regional
operations manager, Douglas currently holds the position of treasurer for the
Mortgage Bankers Association of Tampa Bay and supports The Children’s Home in
Hillsborough County.
Adam Calvery
a la mode’s Mortgage Solutions Division
President
Adam Calvery is the president of a la mode’s Mortgage
Solutions Division, managing the company’s full line of compliance and quality control tools. His focus is spearheading
the Mercury Network vendor management platform (VMP),
which has just reached a volume milestone of 10,000 appraisal transactions
per day.
Craig Doriot
LoanSifter Inc.
Founder and Chief Technical Officer
Craig Doriot is founder and chief technical officer of LoanSifter
Inc., a mortgage pricing engine and consumer direct application
process that has helped revolutionize mortgage technology, and
who has previously created other successful Internet-based ventures. LoanSifter has grown from its first customer in 2006, to servicing more than
670 mortgage-related institutions to date. Under Craig’s guidance, LoanSifter has
pioneered the growth of pricing engines to help reach consumers on their terms
with auto-quoting, e-mail campaigns, rate tables, open house flyers, consumer
pricing portals and rate alerts.
Derek Egeberg
Academy Mortgage Corporation
Branch Manager
Derek Egeberg, a branch manager with Academy Mortgage
Corporation in Yuma, Ariz., is a consummate professional who is
always willing to offer support and knowledge to the industry and
loan officers across the country. He has been a supporter of The
Mortgage Revolution since its inception and has spoken at both Mortgage
Revolution events in Atlanta and New York. Derek fields frequent calls and
responds to message board posts from originators around the country. His focus
on creating a positive experience for his borrowers and referral partners helps to
improve the image of loan officers and our industry as a whole. He also worked
behind the scenes to help propel a major, industrywide legislative effort into the
forefront earlier this year. Derek Egeberg is a great loan officer, a great leader and
a great friend to many in our industry!
Chris Frost
Frost Mortgage Banking Group
Vice President and Operations Manager
Chris Frost attended New Mexico State University, majoring in
finance. He had worked part-time in commercial banking for
three years to put himself through college. Chris spent a total of
seven years in banking, culminating as assistant vice president
and branch manager of the Bank of Albuquerque. He made his move to mortgage
banking and Frost Mortgage Banking Group in December of 2002. Chris has been
a top loan originator, sales trainer, sales manager, and now serves as Frost
Mortgage Banking Group’s vice president and operations manager. Under his
watch, Chris has helped grow the company from five local branches to 21 national branches encompassing 13 states. His team continues to strive for the divisional goal of 35 branches and $100 million per month in fundings.
Steve Grant
Credit Plus Inc.
President
Steve Grant joined Credit Plus Inc. 20 years ago and has served as
the company’s president for the past 13 years, directly overseeing
the company’s sales and operations functions. Under his leadership, Credit Plus has grown from 10 employees to 125 and has
experienced a 1,650 percent increase in sales. He is often called upon to author
industry articles for his keen industry foresight.
Bryan Harlan
Benchmark Mortgage
Loan Officer
Jason “Hammer” Helmer
Jacob Dean Mortgage Inc.
Loan Originator
Jason “Hammer” Helmer is well-known for introducing strategies
on how to get more business and make more money with the
2010 Good Faith Estimate (GFE). Jason has been a speaker at multiple Mortgage Revolution events, and currently mentors a national audience of originators through his Webinars at RateAlert. Jason is a loan originator with Jacob Dean Mortgage Inc., in addition to serving as a business development consultant for Hammer Solutions LLC.
Greg Holmes
Credit Plus Inc.
National Director of Sales and Marketing
27
Greg Holmes joined Credit Plus Inc. four years ago as the southeast regional sales manager and was promoted to the position of
national director of sales and marketing last year. Greg leads a
team of regional sales managers and account executives. He has
more than 15 years of experience in the credit-reporting industry and has been an
integral factor to Credit Plus’ success helping grow the company by 20 percent and
maintain profitability despite a weak economy.
Stewart Hunter
Benchmark Mortgage
President/Co-Founder
Stewart Hunter, along with Bryan Hunter, co-founded Benchmark
in August of 1999, and currently serves as company president. The
holder of a BBA degree in Business Administration from Louisiana
Tech University, Stewart is quite a visionary and has led the charge
in Benchmark’s rapid expansion. Stewart oversees Benchmark’s expanding base
of 167 branches, working closely with Gil Holloway on new branch partnerships
and business development. Stewart also oversees the company’s underwriting,
funding, closing and secondary market divisions, as well as Benchmark’s new
products department. He also supervises daily branch and client support functions. For two years prior to Benchmark, Stewart was owner/operator of a branch
for The Mortgage Factory in Frisco, Texas. He managed 10 mortgage consultants
with Bryan Harlan, and assisted in the opening of satellite branches in Baton
Rouge and Shreveport, La. In the mid-1990s, Stewart also worked for Landmark
Mortgage where he met Bryan Harlan. Stewart was a top-producer at Landmark
for two consecutive years, earning awards for being number one in the company
for both units and volume. He was also inducted into the President’s Club.
Mat Ishbia
United Wholesale Mortgage
Mat Ishbia is executive vice president of United Wholesale
Mortgage (UWM) and is primarily responsible for growing UWM
from 20 employees servicing $140 million in mortgages in 2006,
to more than 200 employees closing more than $2 billion in mortgages in 2009. Recognizing the need for a workflow process that would serve brokers in record time, the company has grow into one of the top 10 Federal Housing
Administration (FHA) lenders in the country.
NOVEMBER 2010
Bryan Harlan is an award-winning MBA and senior executive with
demonstrated success as an entrepreneur, CEO, trainer and mortgage consultant. Co-founded, organized and currently manages a
national mortgage banking corporation with nearly 60 branch
offices throughout the U.S. Bryan is experienced in strategic planning, business
and product development and marketing execution. A goal-directed change agent
and a skillful team builder with a sense of urgency, Bryan thrives on P&L responsibility and driving top-line revenue growth, as well as bottom line profitability. As
the broker of record for Benchmark Mortgage, Bryan holds the prestigious
Certified Mortgage Consultant (CMC) designation awarded by the National
In the industry for nearly nine years, Andy W. Harris is the owner of
Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and 2010
president of the Oregon Association of Mortgage Professionals
(OAMP). As a passionate owner and high-producing originator, Andy
took the market challenges head-on and motivated in 2007 with new DBA when everyone was doing the opposite. Vantage Mortgage Group has been profitable as a startup
company not only every year, but in every quarter since 2007. Vantage Mortgage features unique and innovative origination and marketing systems with paperless processing. Andy has an excellent reputation in the and his personal articles and motivational pieces have been published nationally in different industry outlets.
Born and raised in the Pacific Northwest, Annie Gulosh’s passion
for the community is the driving force behind her desire to
become a leader in the mortgage industry. Annie is a mortgage
advisor with Portland, Ore.-based Northwest Mortgage Advisors,
and the founder and visionary behind www.365ThingsPortland.com, where she
posts a new idea for something to do in the Portland, Ore. area on a daily basis,
whether it be a restaurant or coffee shop to check out, a theater or park to visit, a
special event to look into, and more. Her grasp of the subtleties of real estate, as
well as her compassion and commitment to her clients and their goals, is what sets
her apart as a mortgage professional. Annie understands that the key to a perfect
transaction is mutual trust and partnership, and considers her clients valuable
assets to a winning team.
Andy W. Harris
Vantage Mortgage Group Inc.
Owner
Annie Gulosh
Northwest Mortgage Advisors
Mortgage Advisor
Association of Mortgage Brokers (NAMB). This designation has only been awarded
to approximately 1,100 mortgage professionals in the country, based on experience, education and industry leadership.
Mark Madsen
Raintree Mortgage
Online Communications Manager
community. She donates her time, resources and money to numerous organizations, including CandleLighters Childhood Cancer Foundation, a charity for children fighting cancer; St. Andrew Nativity, a charity for educational scholarships;
Mark Madsen is the online communications manager for Raintree and Care & Share through the Kerala Association of Washington, which raises
Mortgage in Las Vegas. Mark is the owner of an expansive list of money for life-changing eye surgeries for children in India.
nationally-recognized
industry
Web
sites,
including
Patrick P. Palmer
MortgageRevolution.info, MyFHAMortgageblog.com, Lenderama.com
Pinnacle Capital Mortgage
and WannaNetwork.com. Mark has been publishing articles online about homeownerNorthwest Division President, Regional
ship education since 2005. While there are several responsibilities required of an inProduction Manager
house social media manager, Mark’s primary role is to write mortgage-related conPatrick P. Palmer, Northwest Division president/regional productent online for the purpose of building trust new with clients and agents. With more
tion manager, has helped grow Pinnacle Capital Mortgage from
than six years of experience online building social networks, developing blogs, study50 employees to 700 within only two years as the president of
ing search engine optimization (SEO) and writing for the industry, Mark also coachAlpine
Mortgage
Planning. Patrick oversees day-to-day sales and operations withes his real estate partners through the setup and successful implementation of their
in the company and has 15 years of experience in the mortgage lending industry.
Internet marketing campaigns.
Patrick was the co-founder and chief executive officer of Alpine Mortgage LLC in
Lake Oswego, Ore. Patrick has been a Mortgage Banker since receiving his bacheKevin Marconi
lor’s degree in Business and Economics from Western Oregon University in 1995.
United Fidelity Funding
Chief Operating Officer
Kevin Marconi is the chief operating officer of United Fidelity
Funding LLC, a national wholesale and retail mortgage banker.
Started as a de novo lender in 2007, United Fidelity now funds
more than $1 billion annually. When others turned their backs
on the wholesale business subsequent to the mortgage meltdown, Kevin began to
focus on it, making third-party originators (TPOs) his primary business channel.
28
Jason J. Pidgeon
New England Federal Credit Union
Mortgage Loan Officer
Since Jason J. Pidgeon’s start at New England Federal Credit Union
in 2001, he has not stopped wanting to learn and be involved.
After a few years of involvement in the Vermont Mortgage
Bankers Association, he was nominated for the position of vice
president of the association and currently serves as association president.
Matthew McCabe
Additionally, Jason has become one of a few loan officers in Vermont to obtain his
Loan Resolution Corporation
Accredited Mortgage Professional (AMP) designation through the Mortgage
President
Matthew McCabe is president of Loan Resolution Corporation (LRC) Bankers Association (MBA). In 2009, his annual loan production was 521 loans for
in Scottsdale, Ariz. LRC has grown from three to 120 employees in $93,260,802, with one assistant and one processor.
just three years. Matthew was actively involved with the operaJoseph Puthur
tional development of LRC, and is now focused on priority client
Mortgage Coach
boarding and process improvement through streamlining the company’s short sale
President
and modification operations. LRC has ranked as the largest short sale vendor in the
Joseph Puthur is the president of Mortgage Coach, re-inventing
United States by file volume and number of contracts. LRC has contracts with the
the industry’s most trusted selling strategy to embrace the
government-sponsored enterprises (GSEs) and the nation’s top five servicers.
Internet and mobile revolution. Joe and the Mortgage Coach
team have released two ground-breaking products in the last 12
Gabe Minton
months; Ratewatch and Edge. He is most known as founder and former chief
Motivity Solutions Inc.
executive officer of Lasso Technologies, a startup launched just after his 19th
Chief Strategy Officer
While working at the Mortgage Bankers Association (MBA), Gabe birthday, that pioneered bringing loan origination software online. In 2005, Ellie
Minton spearheaded the furtherance of the Mortgage Industry Mae, the makers of Genesis, Contour, Encompass acquired Lasso Technologies to
Standards Maintenance Organization (MISMO). Gabe has worked create Encompass Anywhere, the online version of Ellie Mae’s flagship product.
tirelessly to help standardize the way technology data is utilized in
Philip Rasori
the mortgage industry, which has been adopted by most technology vendors and
MCT Trading
lenders. From his time with Ultraprise, to the MBA, to Mortgage Cadence, and now
Principal and Chief Operating Officer
as chief strategy officer of Motivity Solutions Inc., Gabe has been an advocate and
Phil Rasori is a principal and chief operating officer with MCT
leader for automation, control and standards for the mortgage industry. Gabe utiTrading, a risk management firm that brings big bank capital
lizes his in-depth business experience, leadership and software engineering expertmarkets performance and execution to mid-sized lenders. Phil
ise to drive the strategic planning process and develop third party alliances and
and his homegrown analyst team have driven MCT growth,
relationships, while strengthening Motivity’s technology products and initiatives.
quadrupling the company in size over the past two years. Phil has continuously
developed and improved the MCT HALO model over the past eight years. In the
Gibran Nicholas
course of his work, he pioneered a number of hedging metrics that have since
CMPS Institute
become de facto industry standards. Phil has also developed one of the indusChairman and Chief Executive Officer
Gibran Nicholas is a professional writer, speaker and an entrepre- try’s first iPhone/SmartPhone apps for mortgage hedging. In addition to his work
neur. Since 2005, he has been the chairman and chief executive in the mortgage industry, Phil is a central figure in a benevolent large micro
officer of the CMPS Institute, a national organization that certifies lending project in Kenya that has just celebrated a 10-year anniversary.
mortgage bankers and brokers. Gibran has personally trained
Stephen Ribultan
more than 6,000 financial professionals across the country, including CPAs, attorDocMagic Inc.
neys, financial planners, bankers and mortgage brokers.
Executive Sales Manager
Amanda Niles
Summit Mortgage
Mortgage Consultant
Amanda Niles, mortgage consultant for Summit Mortgage in
Portland, Ore., is a high volume producer on pace to close more
than 150 mortgage loans in 2010. She has worked as a mortgage
broker/banker for nine years and is active in giving back to the
At a young age, Steve Ribultan, currently executive sales manager
of DocMagic Inc., has worked for several leading mortgage technology companies, including Commerce Velocity, Portellus,
OpenClose, and presently DocMagic. In particular, and in the
wake of numerous new regulations, Steve has been instrumental in introducing
technology solutions to tackle new compliance issues to his clients and partners.
Steve is a non-year veteran of the mortgage software industry.
Rick Richter
Gold Star Financial
Rick Richter is executive vice president of Ann Arbor, Mich.-based
Gold Star Financial. Rick has been ranked the number two loan
officer in Michigan and number 22 in the U.S., and oversees 300plus loan officers raising productivity by nearly 400 percent in the
last two years. Rick created and was responsible for Gold Star’s sales and client
management system contributing to the company becoming an Inc. 500 company, and a growth forecast of more than 1,000 employees in 2011 making Gold Star
the fastest-growing financial company in the state of Michigan over past two
years.
Dawn Robinson
PrimeLending
Senior Vice President of National Production
Dawn Robinson, senior vice president of national production for
PrimeLending, is actively involved in the mortgage industry and
spends time in Washington, D.C. lobbying for industry causes.
Dawn was recently selected and has graduated from the
Mortgage Bankers Association’s Future Leaders Program. She has grown up in
PrimeLending, serving as an assistant branch manager, to loan officer, to vice
president of secondary of product development and investor relations, to her current role with the company as senior vice president of national production. Dawn
has watched PrimeLending been close $500 million in a year, to more than $7 billion year-to-date in 2010.
Rene F. Rodriguez
MortgageDashboard
Chief Executive Officer
Rick Roque
Menlo Company
National Manager of Business Development
Adam P. Smith
The Colorado Real Estate Finance Group Inc.
President
John Glen Stevens
ENG Lending
Branch Manager
John Glen Stevens is the current president of the Utah
Association of Mortgage Brokers (UAMB) and branch manager
for ENG Lending in Utah, with branches, in Draper and St.
George, Utah. He is the delegate for the state of Utah to the
National Association of Mortgage Brokers (NAMB) Delegate Council, and is serving as 2010 co-chair of the NAMB/WEST Committee. Previously, John owned his
own company, Stevens & Shumway LLC. He serves on the Library Board for the
City of Pleasant Grove, and ran for a seat in the Utah House of Representatives
in 2010.
29
Louis Tesoriero
Guaranteed Home Mortgage Company, Inc.
Branch Development Manager
Louis Tesoriero tripled funded loans for another mortgage company, from $30 million to $100 million, in just four months prior
to joining Guaranteed Home Mortgage Company Inc. At
Guaranteed, as business development manager, Louis has
opened 15 new branches in his first two years with the company. Louis is responsible for the nationwide recruitment of full branch operations and the integration of their organization into Guaranteed Home Mortgage. In addition to finding
new organizational opportunities, Louis also serves as a liaison for existing locations to ensure branch retention and a seamless interface with Guaranteed’s corporate headquarters.
Drew Waterhouse
Hammerhouse LLC
Managing Director and Chief Executive
Officer
Drew Waterhouse has 15 years of experience in mortgage
headhunting and supporting strategic growth initiatives.
During his career, Drew has lead and managed large teams
with a publically-traded mortgage bank and a depository with a focus on
building out production, leadership teams and value platforms. In 2008,
Drew established Hammerhouse, a national recruiting and strategic growth
partner, to help clients expand revenue by adding experienced mortgage professionals that focus on purchase business and have created sustainable relationships with referral partners and past customers. Hammerhouse currently
supports an organic expansion for clients, which includes private equity firms
entering and expanding in the market, as well as traditional mortgage
bankers and depositories, with a focus on model matching and effecting high
levels of retention.
NOVEMBER 2010
Adam P. Smith is president of The Colorado Real Estate
Finance Group Inc., a commercial and residential real estate
finance firm. During his career, he has helped thousands of
clients, both individuals and corporations, in their goals
regarding real estate finance, as well as both personal and corporate finance
Andrew Soss is the founder and president of Stewart & Soss
Mortgage, a full-service mortgage banking company located
in San Jose, Calif. Andrew operates a seven employee operation and had personal production of $42 million in 2009,
and is on pace to break $100 million in volume in 2010. Andrew is president-elect of the California Association of Mortgage Professionals, Silicon
Valley Chapter and as the Government Affairs Committee chair, he has visited Washington, D.C. to lobby members of Congress on behalf of the independent mortgage professional.
Rick Roque was formerly a senior management team member at
Calyx Software and is currently a mortgage technology and acquisitions consultant. He assists both technology and mortgage firms
in meeting the needs of consumers throughout the mortgage
lending process. Having spoken at more than 50 mortgage conferences over the
last two years, including the first ever mortgage liquidity conference in Africa in
2009. Rick leverages his technology, process and mortgage lending expertise to
grow adoption and top line revenue growth for his clients. At the present time,
Rick leverages this consultative background on acquisitions and strategy for Ellie
Mae in Pleasanton, Calif.
Andrew Soss
Stewart & Soss Mortgage
Founder and President
As chief executive officer of MortgageDashboard, Rene F.
Rodriguez is responsible for leading one of the U.S. home
finance industry’s leading mortgage technology firms. His
unique methodology and approach to leadership and teambuilding have been indispensable to MortgageDashboard as it has innovated
through the recent economic downturn. The firm is currently releasing version
4.0 of its loan origination system (LOS) and is poised to increase market share
rapidly as the industry enters its recovery. Before assuming his current role,
Rene was founder and chief executive officer of Volentum, an enterprise education and consulting company specializing in the application of “The Next
Generation of Change Making” to deliver practical ways for individuals and
groups to grow and renew themselves even as they engage and profit from
recurring change. Prior to Volentum, Rene was CEO of Rapid Change, a consulting firm that trained more than 50,000 people and whose training and
tools were named a Best Practice in three Fortune 250 companies, and chief
learning officer, founder and former dean of the Corporate University for a
national mortgage bank.
and has personally written billions of dollars in mortgage and finance deals.
Adam lectures regularly on contact management and marketing to colleagues in the real estate, mortgage, insurance and financial fields. He has
taught classes for several of the country’s largest real estate companies,
countless title companies and many regional real estate boards. He has also
taught technology classes for several Colorado Association of Realtors (CAR)
events. The Colorado Real Estate Finance Group Inc is a member of the
Denver/Boulder Better Business Bureau with a perfect record for as long as
they have been such, and is a multiple recipient of the BBB Gold Star Award
and was nominated for the 2009 Torch Award for Marketplace Trust. Adam
was also nominated for the BBB Board of Directors in 2008.
Josh Weinberg
First Choice Bank
Director of Compliance
Joshua Weinberg is a nationally-recognized speaker, author,
trainer and leader in the mortgage industry, specializing in
compliance and technology. He works closely with the Federal
Reserve where he was asked to participate in pre-rule making
design discussions of new Truth-in-Lending Act (TILA) disclosures; with the U.S.
Department of Housing & Urban Development (HUD), working closely with the
Department on Real Estate Settlement Procedures Act (RESPA) concerns; and is
a member of the Registered Institutions Working Group for the Nationwide
Mortgage Licensing System (NMLS) and many industry associations. Josh is currently director of compliance for First Choice Bank, a state-chartered, Federal
Deposit Insurance Corporation (FDIC)-regulated bank in New Jersey, and he
consults privately for mortgage banks and some of the top mortgage technology vendors in the country. Previously, Josh was in charge of compliance for
Calyx Software and prior to that, he owned and operated a mortgage brokerage
in San Francisco, Calif.
Andrew WeissMalik
360 Mortgage Group
Chief Operating Officer and Vice President
Andrew WeissMalik is chief operating officer and vice president of
Austin, Texas-based wholesale lender, 360 Mortgage Group. With
10 years of mortgage industry experience in secondary marketing
and IT, Andrew served as vice president of secondary marketing at
Castle & Cooke Mortgage. His responsibilities there included managing the firm’s
loan purchase programs, hedging strategies and IT implementations. Prior to that,
Andrew was involved in secondary marketing activities at Echelon Mortgage and
McAfee Mortgage (formerly Home Mortgage).
The Next 40 Mortgage
Professionals to Watch …
Due to the hundreds of submissions we received for our “40 Under 40” list,
there are those who are making serious waves in the industry who could not
be overlooked. They, like those on the “40 Under 40” list are the leaders of
this industry for years to come, so keep an eye out as well for the following
innovators and originators as they continue to shape the industry:
30
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We Are The Lender. All Decisions Made IN HOUSE.
"Our Money- Our Rules" - Never Any Due Diligence Fees
Submit your scenarios at WeApproveLoans.com or call (877) 353-2233.
Shane Backer ..........................GFI Mortgage Bankers, Senior Loan Officer
Alex Barnett ..................Integrity First Financial Group, Principal Partner
Jason Berman ................................................J. Berman Group, Principal
Vladimir Bien-Aime............................Global DMS, Chief Executive Officer
Mark Bolour ..............Bolour Associates, Chief Executive Officer/Principal
Josh Bopp ..................................................................Focus IT Inc., Owner
Tim Elkins ........................................PrimeLending, Senior Vice President
Scott Estlund ..............First Choice Mortgage, Senior Mortgage Consultant
William K. Farrar................................................Flagship Financial Group
Lisa C. Forgony ..........................Mortgage Resources of South Florida Inc.
Steve Gatti ......................Mortgages Unlimited Inc., Mortgage Consultant
Shaun Guerrero ........................................The Legacy Group, Loan Officer
Chad Thomas Hagwood ....................Beech Street Capital, Executive Vice
President of Originations
Mark J. Hanna..............................Directors Mortgage Inc., Chairman/CEO
Nicole Marie Hudson ....................Interactive Financial, Vice President of
Sales and Marketing
Stephan Kachani ......Loan Oak Fund, Vice President of Sales & Marketing
Kory Kavanewsky ................CMG Mortgage Corporation, Branch Manager
Ryan Kohl........................................Express Capital Mortgage Inc., Owner
Dino Lack ............................Wells Fargo Home Mortgage, Vice President,
Wholesale Support Technology and Information Office
Owen H. Munton ........................Prime Mortgage, A Division of Magnolia
State Bank, Vice President
Zubin Nagpal..................................Home Lending Source, Vice President
Travis Hamel Olsen ....Loan Resolution Corporation, Chief Operating Officer
Shelly Panzarella ......................Primary Residential Mortgage Inc. (PRMI)
Matthew A. Pineda ......................Castle & Cooke Mortgage LLC, President
Shawn Presnell ..................American Mortgage Centers, Branch Manager
Marty Preston ................................Benchmark/mymortgagepro, Partner
Ron Riemer..................GFI Mortgage Bankers Inc., Vice President of Sales
Clinton R. Rockwell........BuckleySandler LLP, Mortgage Banking Attorney
Bill Rogers..................................Homeowners Financial Group, President
and Founding Partner
Josh Shein ............Great Oak Lending Partners, Managing Partner/Owner
Kyra Sommerville ..............................Inlanta Mortgage, Branch Manager
Zach South............................................Best Rate Referrals LLC, President
Kurt W. Strandson ......................Radiant Mortgage Inc., President/Owner
Brian Swanson..........................Bank of Internet, Senior Vice President of
Residential Lending
Ernest Tepman..........................New American Funding, Branch Manager
Tory Tarsitano ....................Capital Financial Bancorp, Owner/Originator
Julie Toler ................Certified Mortgage Planners, Relationship Manager
Ray Vinson III ................................Vinson Mortgage Group, Founder and
Chief Executive Officer
Dean Wegner ........................................W.J. Bradley, Mortgage Originator
Jordan Weimersheimer ....Equity Mortgage Lending LLC, Branch Manager
heard on the street
DartAppraisal.com chosen
by HomeTelos for appraisal
services and partners with
McKissock for online
appraisal education
Veros integrates with a la
mode’s Mercury Network
for compliance and
appraisal ordering
NOVEMBER 2010
31
a la mode has
announced that Veros
Real Estate Solutions
has integrated their VeroSELECT and
Valuation Risk Management (VRM) products with Mercury Network’s vendor
management platform. The integration
connects Veros’ platform clients with the
largest network of real estate appraisers
and appraisal management companies
(AMCs). The services will support realtime appraisal order placement, appraisal order payment processing, status
updates through the order cycle, and
delivery of the completed appraisal
report in MISMO 2.6 format, and electronic appraisal submission in full compliance with the Federal Housing Finance
Agency’s (FHFA) mandated Uniform
Collateral Data Portal (UCDP). UCDP is
being implemented by Fannie Mae and
Freddie Mac as part of a greater loan
quality initiative—the Uniform Mortgage
Data Program—in order to provide seller/servicers with common requirements
for appraisal and data delivery, ultimately improving loan quality and transparency across the board.
The plug-in between Mercury
Network and Veros provides platform
users with the ability to connect to the
appraiser’s desktop software as well as
place orders directly to AMCs using
Mercury Network as their vendor management platform. Additionally, the
plug-in enables appraisal reports to be
delivered to the Veros systems using
fully compliant MISMO XML, which in
turn, will allow the report data to flow
directly to the UCDP.
As a result, this connection will provide users with the ability to streamline
compliance and enhance quality assurance. Business and workflow rules
(which are executed on the appraiser’s
desktop from within the Mercury
Network plug-in) preprocess the
appraisal report before it is delivered
to the Veros system.
“This integration with Veros perfectly positions our two companies to
DartAppraisal.com,
a national provider
of residential real
estate appraisals, has announced that
HomeTelos LP has selected the company
as their appraisal services provider for
the newly awarded U.S. Department of
Housing & Urban Development (HUD)
single family residential portfolio.
HomeTelos LP, a Dallas-based real estate
services and technology firm and
approved GSA schedule contractor, was
selected to provide new and advanced
marketing strategies to sell HUD’s singlefamily residential homes in five regions,
covering 25 states and additional U.S. territories. A quick and accurate appraisal
valuation is a key element to the execution of selling strategies for the portfolio
HomeTelos manages.
The geographic area covered by
HomeTelos’ services under these contracts
includes Alabama, Arkansas, Colorado,
Delaware, District of Columbia, Florida,
Georgia, Illinois, Indiana, Kansas, Kentucky,
Louisiana, Maryland, Mississippi, Missouri,
New Mexico, North Carolina, Ohio,
Oklahoma, Pennsylvania, South Carolina,
Tennessee, Texas, Utah, Virginia and West
Virginia, including Puerto Rico and the U.S.
Virgin Islands.
“Our experience in working with Asset
Managers for REO valuations makes this
a natural partnership,” said Darton Case,
president of DartAppraisal.com. “Since
2006, DartAppraisal.com has specialized
in REO appraisals. We specifically train
our key REO appraisers annually to
ensure compliance with all regulations,
understanding of the latest changes and
avoidance of common reporting errors.”
As part of the company’s commitment
to quality control, DartAppraisal.com has
trained hundreds of appraisers throughout Texas and Georgia on the specifics of
real estate-owned (REO) valuations.
Additionally, DartAppraisal.com recently
introduced DartAdapt quality control
technology to on each appraisal to attain
the highest level of accuracy.
DartAppraisal.com has also announced
the launch of Dart Academy, a partnership
with McKissock LP to offer online options
to appraisers for continuing education and
pre-licensing/upgrade purposes nationwide. McKissock LP is a nationally-recognized online provider of appraisal education, with approved courses available in all
50 states and three U.S. territories.
Tracey Meldrum will serve as the
DartAppraisal.com vendor coordinator
overseeing the launch and implementation of Dart Academy. Meldrum was
recently added to the team to provide
additional resources to the company’s
expanding appraiser panel.
DartAppraisal.com has relied on
McKissock for educational services
since 1996, when Case himself began
updating his continuing education
credits both online and in classes
through the company. In 2006, as the
number of properties in foreclosure
mounted, DartAppraisal.com prepared
its appraisers in several cities to follow
U.S. Department of Housing & Urban
Development (HUD) real estate-owned
(REO) appraisal guidelines with
McKissock by offering a full day course
on the subject.
For more information, visit www.dartappraisal.com, www.hometelos.com or
www.mckissock.com.
MRev Hits New York
www.BestRateReferrals.com
On the weekend of Oct. 15-17, National Mortgage Professional Magazine had the
pleasure of attending another Mortgage Revolution event at the Westchester
Marriott in Tarrytown, N.Y. MRev founders, Mark Madsen, Mark Green and
Brian Larrabee were assisted with the New York show by fellow North Easterner,
Jason Klaskin. Working with some very helpful sponsors, such as Credit Plus Inc.,
Mortgage Coach, Mortgage Planner CRM, Top of Mind Networks and Estate of
Mind, the industry’s top originators had a chance to hear from some of the best
trainers in the industry, including Dave Hershman, Rene F. Rodriguez, and Joe
Puther, as well as hearing from a huge list of experts on topics ranging from
social media, to video marketing, to sales management.
The biggest takeaway from the event ... invest time in helping others
build their business ... get paid huge dividends. In addition, attendees
learned tips on creating viral videos, time management tools and all
enjoyed some great networking opportunities.
Stay tuned to MRev.org for details on future events.
Khai McBride
delivers his
presentation on
sales management
and customer
retention
32
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EExceeding
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Jumbo/Super Jumbo Loans?
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Anny Havland fields
questions during her
session on video marketing
Rene F. Rodriguez
discusses the traits
of leadership
during his session
Chris Brown explains how
to use social media to gain
business during his Social
Media 101 presentation
www.calyxsoftware.com
We offer Wholesale and Retail Branches
Call 877-882-8069
www.gatewayloan.com
Dave Hershman explains
how making a commitment
to your industry will pay
dividends during his lively
session
Jonas Kruckeberg
delivers his
session on video
and how to
effectively use it
to boost your
business
heard on the street
achieve several of our shared priorities,
such as forward-thinking compliance,
and high-quality finished appraisal
reports,” said Adam Calvery, a la
mode’s president of mortgage solutions. “We’re excited about the implications this development has for our
respective customers.”
Veros’ platforms are designed to
intelligently order, receive, review and
route appraisals, broker price opinions
(BPOs) and automated valuation models (AVMs) as well as other forms of collateral valuations and analytics.
“We’re delighted to be working with
Mercury Network,” said David
Rasmussen, senior vice president of
sales and operations for Veros. “The
ability to seamlessly connect with
Mercury’s diverse network of appraisers
and AMCs all the way through the valuation chain to the secondary market
creates an industry efficiency where
everyone wins.”
For
more
information,
visit
www.veros.com or www.alamode.com.
Fiserv renames its
servicing platform
“LoanServ”
forms new REO and settlement services network
LenderLive Network
continues to expand
33
United Northern is Seeking Highly
Qualified, Experienced Mortgage
Professionals To Grow as We Grow
• Operations Manager
• Production Manager
• Senior Underwriter
• Virtual Mortgage Loan Officers (VMLOs)
• In-House Mortgage Loan Officers
(MLOs)
• Team Leaders/Sales Managers
Visit UnitedNorthern.Jobs, email [email protected]
or call (888) 600-8808 ext 1.
United Northern Mortgage Bankers, Ltd. Corporate NMLS ID# 7230 New York State Banking Dept. - Licensed Mortgage Banker – License #100724 New Jersey Dept. of Banking and Insurance – Mortgage Lender – License #L0046623 Pennsylvania Dept. of Banking – Mortgage Lender – License #20887 Connecticut Dept. of Banking - Mortgage Lender - License #20372 Massachusetts Div. of Banks and Loan Agencies - Mortgage Lender & Mortgage Broker – License
#MC5070 North Carolina Commissioner of Banks – Mortgage Lender – License #L140365 South Carolina State Board of Financial Institutions – Supervised Lender
– License #S7,461 Florida Dept. of Financial Institutions - Mortgage Lender - License #ML0700679 Senior Security Home Advantage is a lending area of United
Northern Mortgage Bankers, Ltd. Direct FHA Endorsed Lender
NOVEMBER 2010
LenderLive
Network Inc., a
provider of business process outsourcing and technology to the financial
www.CBspecialty.com
Insurance Company
has announced the
formalization of First
American’s National Title Insurance
and Settlement Solution (FANTISS) network. The FANTISS network provides a
central point of contact to assist
lenders in closing large volumes of real
estate-owned
(REO)
transactions
through First American Title Insurance
Company’s network of local offices
nationwide. FANTISS team members
provide lenders with a single point of
contact throughout the settlement
process, allowing for a greater level of
simplicity and efficiency when closing
multiple-property portfolios.
Through the FANTISS network,
lenders closing multi-property REO portfolios will experience standardized and
consistent processes, communication,
technology, underwriting and pricing.
Further, First American Title has a
national underwriting staff dedicated to
working directly with the FANTISS network, which allows lenders to efficiently
resolve any title-related issues that may
arise during the REO sales process.
“We are offering a unique and branded
solution that benefits both lenders and
their home-buying customers,” said Mike
Conway, eastern division president for
First American Title. “With today’s high
volume of REO sales transactions, traditional regional providers offer little standardization and can simply be overwhelmed. By utilizing the FANTISS network, national lenders will experience the
convenience of working with a single point
of contact while buyers will receive the
same quality and personalized service that
they have come to expect when working
with First American Title Insurance specialists at the community level.”
For more information, visit www.firstam.com.
Fiserv Inc. has announced
the renaming of its Loan
Servicing Platform to
LoanServ. As a single-platform, real-time
solution, LoanServ combines mortgage
loans, consumer loans, indirect financing,
home equity loans and lines-of-credit and
distressed-loan functionality into one core
system so that all of a borrower’s retail
loan relationships can be supported on
one platform, creating efficiencies and
convenience for financial institutions.
Most recently known as the “Loan
Servicing Platform” from Fiserv, LoanServ
grew out of the company’s MortgageServ
solution which at the time was the first
Web-enabled, real-time solution for all
aspects of mortgage servicing and management. As the financing needs of borrowers evolved over the past decade,
Fiserv invested in a development strategy to add support for not only home
equity loans and lines of credit but for
other retail loan products as well. As a
result, LoanServ is the only servicing system that has integrated support for all of
these financing instruments.
“The name change is a significant
statement about our vision,” said
Thomas Gorman, president of Loan
Servicing Solutions, Fiserv. “One of our
greatest challenges is ensuring that product innovation is not only a ‘good idea’
but is also a fundamental contribution to
business process improvement. LoanServ
is a powerful solution that ultimately
offers a diverse range of financial institutions greater control over their operations and more flexibility to support
products, policies, regulatory changes
and customer relationships.”
Designed to support any size or type
of institution, LoanServ can be
deployed at a range of financial organizations, from entrepreneurial loan
servicing operations to the largest
financial institutions. By reducing disparate technology systems and redundant interfaces, and integrating online,
real-time transaction processing and
workflow automation into a single software system, LoanServ allows banks,
credit unions, specialty lenders and
investors to add loans to their portfolios while reducing costs, increasing
productivity and creating opportunity.
For more information, visit www.fiserv.com.
A View From the C-Suite
Predictions and Strategies in a Down Market
By David Lykken
34
Never before has it been more critical
First of all, let’s talk about the almost
that you carefully and conscientiously certainty of a “down market.” With
consider your business strategy. We are interest rates being in the low fours and
in unprecedented times. What has a high threes, doesn’t it seem a bit illogworked in the past is not going to work ical that we should be in a “down marin the future, at least to the same ket.” I can understand why some might
degree. Everything has changed! Unless ask the question: “How can this be?” As
you recognize it and deal with it intelli- the then presidential candidate Bill
gently, I predict you could be forced out Clinton so aptly put it, “It’s the econoof business. And the most painful part my stupid!” With interest rates at hisof that will be watching those who toric lows, I can see how some may
wisely choose the right strategy not have the mistaken notion that we could
only just survive, but thrive making have another refinance boom.
record profits. I predict
While refinancing activthat some of the compaity has been brisk in recent
nies that will survive will
months, representing as
surprise you, and even
much as 80 percent of
more surprising will be
some company’s pipelines,
the ones that don’t. Just
I predict that refinance
look at the Mortgage
volumes will drop signifiLender Implode-O-Meter
cantly next year. The key
(www.ml-implode.com) if
culprit preventing any kind
you doubt this.
of refinance boom is home
Some of you reading this
values and unemployment
may be old enough to
or under-employment. The
remember the TV show
fact is that we, as a nation,
“Kung Fu” from the 70s, and “What has worked in are still recovering from a
you may recall “The Master”
“hangover” from the last
the past is not going
(Poe) telling Caine to “Choose to work in the future,
drunken refinance binge
wisely Grasshopper.” Never
that created an unpreceat least to the same
have there been so many
dented “housing bubble”
degree. Everything
forces out there in the
now burst that has resulted
has changed!”
industry seemingly working
in property values falling
against us. It seems, at
by as much as 40 to 50 pertimes, as though the cards are stacked cent in some markets. Even more conseagainst us. This is especially true when you quential is that there is a high probability
consider the tsunami of regulations coming that we could still see another 15 to 20
at our industry, along with a growing num- percent drop in property values in some
ber of foreclosures potentially driving home parts of the country before we hit bottom
values down even further and therefore and start any kind of a recovery.
challenging any potential lift we could see
However, property values will not
from ongoing refinancing activity. So, read begin to stabilize and improve until the
and consider carefully the following and e- overriding issues of unemployment and
mail me your thoughts.
under-employment are solved. That,
At the recent 97th Annual Mortgage plus we need to work through a huge
Bankers Convention in Atlanta, I had and growing existing housing inventory,
the privilege of speaking on a panel are the results of a growing number of
where the discussion centered on the foreclosures. Until all of these issues are
title of this article, “Growth Strategies in addressed and are behind us, there will
a Down Market.” Some of the content be no recovery. Government spending
for this article came from my presenta- has failed to lift us out of this morass.
tion and predictions that I made as a Consider the fact that, at the time of this
panelist.
writing, 23 percent of all existing home
sales is made up of foreclosures. It is
anticipated that percentage will grow to
as much as 40 percent, possibly more,
before we have finally turned the corner.
So, when considering your strategy for
2011, my first recommendation is for you
to plan for an overall industrywide slow
down in the market that could continue
into 2012. If you plan accordingly and I
am wrong, you will do fine. However, if
you do not plan for a down market and
we do in fact experience a down market,
you could find yourself out of business.
But before assuming I am offering a
gloom and doom outlook for the next
year and beyond, please read on.
What I find most interesting about
what is going on in the marketplace
today is the amount of capital flowing
into the mortgage industry. What are
investors seeing as the opportunity? To
put it in perspective, allow me to remind
you of a scene from the movie “Forrest
Gump” where Forrest and Lt. Dan rode
out the hurricane in the Gulf of Mexico.
When they returned, they discovered
that all of the other shrimp boats had
sunk. The competition was wiped out …
gone! They were one of the few survivors.
The short of the story is that they capitalized on the demise of others and made a
fortune. It is important to keep in mind
that, in the midst of turmoil, there is
always opportunity and the greater the
turmoil, the greater the opportunity. So
ask yourself: “How much turmoil has this
industry experienced recently?” And then
ask yourself the corresponding question,
“How much opportunity exists for those
that can recognize it and capitalize upon
it via the right strategy?” How do you
spell E-X-T-R-A-O-R-D-I-N-A-R-Y?
One of the first questions asked of me
when I spoke at the 97th Annual MBA
Convention in Atlanta was, “David, with
all of your consulting experience, what
are some of the biggest issues and potential opportunities facing our industry?”
Here is how I responded:
“It certainly could be said that new regulations, such as the Dodd-Frank bill, along
with higher capital requirements are some
of the biggest issues facing our industry
today, but these two issues are actually
bringing about what I believe is a far bigger issue and corresponding opportunity. I
believe the biggest issue facing our industry is a ‘capacity crisis’ and here is why.
While it is true that the industry loan vol-
umes have, and will, most likely continue
to drop over the next 12-18 months, what
is dropping even further is the number of
industry participants left to serve the consumers real estate financing needs.”
Back to the movie Forrest Gump … all
of the “shrimp boats have sunk” and I am
not just referencing companies but also
think of all the individuals who have left
the industry as well. I went on to say:
“Consider the fact that as many as 50-60
percent, or as high as 70 percent in some
cases, of those taking the new Nationwide
Mortgage Licensing System test are failing
to pass the first time. And that doesn’t take
into consideration all of those who are
being denied licenses due to poor credit.
Simply put, it is distinctly possible, if not
almost certainly probable, that we, as an
industry, will not have enough licensed
persons now to take loan applications
from the consumers seeking residential
financing, whether it be to purchase a new
home or to refinance an existing home.”
Again, how do you spell E-X-T-R-A-OR-D-I-N-A-R-Y opportunities?
This could mean a number of things
for you and your business strategy. It is
essential that you have a strategy to deal
with more loan volume than you can
handle. The absence of such a strategy
could have disastrous consequences in
spite of the fact that it looks like you are
“prospering” even in a down market.
Almost everyone understands that too
little business will certainly put a company out of business, but far fewer understand that too much business can do the
same and actually do so faster … one is
the result of an obvious demise and the
other is a far more subtle demise.
The following are two strategy recommendations that I am suggesting
you consider before you find yourself
taking on more business than you can
handle. The following two recommendations will help you avoid the subtle
“greed” trap that has blinded many
from the subtle demise of not knowing
when enough (volume) is enough.
First, you have to establish a wellthought-out strategy in advance by
using detailed financial planning models to determine how much volume
your company can handle before
blowing up. If you don’t have a good
financial model, create one or call a
consulting firm to help you build one.
They can mean the difference between
life and almost certain death.
Second, I cannot stress enough the
importance of having good systems
that provide you empirical data
(intelligence) of what is going on
within your company at each and
every stage, and in each and every
department. By good “systems,” I
mean both computer and operational systems that effectively monitor all activity at every level and at
every stage of your operations. And,
all of this data from your “systems”
should be fed back into your financial model (usually a detailed
spreadsheet) so you don’t fall prey
to the trap of taking on more business than you can actually handle.
“… greed commonly blinds us
from accurately seeing the juncture of where volume goes from
being a bottom-line blessing to
becoming an overall disaster that
blows up your company.”
If we think 2010 was a tough year, then
hang on because 2011 is going to be
fast and furious. With all of the legislative and regulatory changes coming
within the next 18-24 months, we will
not be able to sit back and hope it all
works out for the best.
Yes, there is some good news … all
loan officers, no matter who you work
for, are now going to be paid on an
equal compensation program. Unlike
in the past, either one side or the other
had an advantage, but now compensation becomes one set of guidelines
starting April 1, 2011.
Loan officers, effective
April 1, 2011, will be paid
off the loan amount only,
plus any bonuses developed by companies, with
nothing involving fees, programs or interest rates.
The broker/owner is
going to have to plan for
all of the following:
number of challenges in developing
a plan for 2011. It may be overwhelming, but as the old anecdote
says, “How do you eat an elephant …
one bite at a time.” The year 2011
may one of the most challenging
years to date, but it is going to be
one of the most exciting and fun
years as you develop your company
into the fighting machine it has to be
to survive. Don’t give up.
As you look at the overall market,
in 2006 there were 1,800 mortgage
companies in the state of Illinois
alone and a total of
18,000 loan officers. In
2011, we will see less
than 700 companies and
approximately
5,000
loan officers in Illinois.
How does that make you
feel? It should make you
feel fantastic as you are
a survivor who has less
competition to deal with
and you will have a
1. How is my company
greater opportunity with
going to be paid?
“Remember, no mat- the right plan to gain
2. How much is my comincreased market share.
ter what the market
pany going to make on
Everyone predicts that
was doing, good or
the loan?
the banks are going to
bad, the mortgage
3. How much does it cost
take over the market, I
customers came to
for me to originate the
can assure that has been
you, the mortgage
loan?
said at least five times since
4. What is my compensa- broker and mortgage
1986. Mortgage brokers
tion program going to
and mortgage bankers
banker, because you
look like?
continue to survive and
were more knowl5. Am I going to have a
develop their own market
edgeable, persistent
bonus program and how
in getting a loan and and niche. Why, because
is going to be structured?
they are innovative and are
more economical.”
6. Is my company going
filled with an entrepreto be a broker, banker or
neurial spirit. So, let’s be
a hybrid?
aware of what others are doing, but let’s
7. How do I attract good producing loan develop our own plan for survival and
officers?
increase our presence. Remember, no
8. Can I stay competitive?
matter what the market was doing,
9. Am I going to be able to meet all of good or bad, the mortgage customers
my deadlines on my own, or do I need came to you, the mortgage broker
outside help?
and mortgage banker, because you
10. How do I make sure I keep my loan were more knowledgeable, persistofficers within Nationwide Mortgage ent in getting a loan and more ecoLicensing System (NMLS) timelines and nomical.
requirements?
As a mortgage broker and a mort11. Have I met all of the minimum gage banker, we also one other thing
wage and labor requirements?
that no financial institution can sat
12. What is your mortgage origination and that is we are licensed profesprojections for 2011?
sionals … be proud of that.
Once you have figured out how to
Now that you have answered navigate your business through what
these questions, you are ready to sit lies ahead in 2011, I hope you’ll pondown and develop your own busi- der what you can do in terms of helpness plan for 2011. In the past, we
have never had to experience the
35
NOVEMBER 2010
To listen to author David
Lykken’s online radio show,
log on to www.blogtalkradio.com and type in “Lykken
on Lending” in the “Search” box on the
right-hand side of the page.
By Marve Stockert
David Lykken is president of mortgage strategies and managing partner with Mortgage
Banking Solutions. He has more than 35
years of industry experience and has garnered a national reputation, and has become
a frequent guest on FOX Business News with
Neil Cavuto, Stuart Varney, Liz Claman and
Dave Asman with additional guest appearances on the CBS Evening News, Bloomberg
TV and radio. He may be reached by phone
at (512) 977-9900, ext. 101 or e-mail
[email protected].
2011: The Year of Big Decisions
Again, greed commonly blinds us
from accurately seeing the juncture of
where volume goes from being a bottom-line blessing to becoming an overall disaster that blows up your company. There are any number of strategies
you can employ to effectively manage
this situation, but it all starts by having
good systems built and operating in
advance that feed accurate information
into a good financial model that is
closely monitored by management.
Another issue that I see in the course of
consulting to hundreds of clients across
the country is that many good originators
or companies that are good at loan originations lack the skill set or discipline to
effectively build (much less monitor) their
systems or their financial model. An effective strategy in this case would be to retain
a consulting firm to help you manage
those areas of your business that you are
not good at managing or that you intentionally choose not to manage. On an
increasing basis, my own consulting firm
is ask to build financial models for companies and then play a key role as a contract executive management team that
monitors these critical areas. Oftentimes
we can do so, and as the saying goes, “better, faster, cheaper,“ than you trying to
learn how to do it yourself. As any business coach will tell you, it’s important to
know what you’re “good at,” but it’s even
more important to know what you’re “not
good at” and surround yourself with the
necessary resources to shore up those
areas that you’re not good at or that you
may not have the time to deal with on a
day-to-day basis.
Another strategy that I recommend you
consider is “taking your business to the next
level” by “moving up the food chain.” By
this, I mean if you are operating as a mortgage broker, you need to become a mortgage banker. If you are operating as a mortgage banker, but are still selling loans on a
“best efforts” basis, you need to “move up
the food chain” and start selling directly to
the agencies on a “mandatory” basis. Trust
me, once you learn how, you will find that
the risks are actually less selling on a
“mandatory” basis than on a “best efforts”
basis. And, if you have bought the lie that it
is difficult to find capital partners (investors)
to invest the necessary capital to take your
business to the next level, don’t lose heart.
There is more capital looking to invest in
our industry than ever before. But it’s highly unlikely that an investor is going to walk
through your front door and say, “I want
invest money in your company.” So, you do
need to know how to go find them (the
investor) and be trained and equipped to
“tell your story” and present your business
opportunity in such a way so as to cause
them to see the value of making an investment in your company and eventually writing you a check. Again, a key component to
raising capital is having an excellent financial model that accurately portrays (models)
how your business’ income and expenses
occur at various stages or volumes.
While this may be a “down market” year,
it does not have to be a down and out market for you if you employ the right strategies
some of which I have suggested above. As
always, I welcome your feedback on this or
any article. Also I recommend that you listen to my weekly radio program, “Lykken
on Lending” that can be heard by going to
www.LykkenOnLending.com. Each week,
we discuss one of the hot topics within the
industry, as well as providing you with an
update on interest rates, legislative initiatives, and even tips on how to become more
profitable.
ing the industry at large. The greatest
opportunity to make a far-reaching
impact comes when many small companies band together as one. Whether
that’s through getting involved in a
trade association, making an appointment with your legislator, taking continuing education classes or attending industry events, we all have many
opportunities, and the responsibility,
to not only see to it that our companies endure, but that our industry
thrives as well.
So as we enter the year 2011, we
have a lot to look forward to as long
as we are willing to make the difficult decision and put together a
plan that is real and obtainable. We
will continue to be under attack, but
we have survived 15 years of new
regulations and we continue to be
here, so they cannot do much more
to hurt us.
Embrace These Five Actions
and Grow in 2011
Marve Stockert has been executive director of the Illinois Association of
Mortgage Professionals (IAMP) since
1996. Prior to that, he was involved in
the retail, wholesale and servicing
aspects of the mortgage business, primarily in the state of Illinois. He has
been involved in legislative issues on the
state and federal issues. Marve resides
in Chicago and can be reached by
[email protected].
By Josephine Nicholas
36
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elping you do more.
more .
When the team at National Mortgage For example, you could say that you want
Professional Magazine asked me to your processing times to become more
write an article for their November efficient, your people to buy more into
2010 issue, I was thrilled because I am your vision, your team to work as a unit
literally brimming with ideas on how to instead of a hodge podge of unconnected
efforts, your lenders to
help businesses succeed
understand you and your
in the upcoming year.
clients more, your commuBut Josephine, you ask,
nity and local media to
“How can we grow when
respect your market
the industry is still reeling,
knowledge, or numerous
when our teams have
other goals.
shrunk, guidelines have
When you focus on
tightened, and our lives are
these “smaller” items,
still in seeming disarray?”
individual items that you
Well, sit back, pour yourself
can work on very specifisome coffee (although you
cally, you will in turn see
may not need the caffeine
growth in your bottom
after you read this article),
and enjoy the below out- “… remember that the line. Find coaches, curriculum, trainers, advisline of five action steps I’ve
key to leveraging
listed to help you succeed.
social media for busi- ers, and others who can
help you focus on these
ness is to use it as a
things in your business,
I. Sharing is caring
platform to provide
and watch the seemingly
We all have a unique
your
network
with
miraculous growth.
value or talent that we
valuable, timely and
bring to the business
world, and the minute we relevant information.” III. Steady on
Sometimes, it’s simply
share that with others is
the minute we become more successful. about pursuing, very diligently and
How often has a business tip you’ve effectively, those things that you do
picked up from a friend or business best, or even about being the one
acquaintance given you just the right organization that is still there in the
amount of knowledge or confidence aftermath of tragedy.
An organization I work with, the
you needed to close new business? An
exchange of ideas and information that CMPS Institute, is a pretty great examyou have learned from business experi- ple of this concept. CMPS’ founder and
ences not only makes you and the one chairman, Gibran Nicholas, has stayed
you are sharing this information with firm to the original intentions of the
richer, it also establishes a quality busi- company, to be the standard of excelness relationship, which results in more lence in the mortgage industry, and the
leading training and certification
closed business.
I’m a longtime, successful entrepre- organization in the mortgage industry
neur and I know this works from expe- for mortgage professionals who want
rience. For example, most recently, I market-based training and to be a part
have taken this concept and decided to of something wonderful and bigger
help people in my immediate commu- than themselves. CMPS members were
nity who are wondering, “How can I be very loyal to the Institute through the
that expert the media calls on and last couple tumultuous years, and
interviews?” Many people don’t know Gibran was faithful to them, continualwhere to start and the tips I pass along ly churning out relevant and timely curat no charge have resulted in net closed riculum. CMPS members hold their desbusiness of more than I could have ignation proudly and tell the Institute
they are proud to be associated with an
even imagined.
organization that has upheld its reputation and continued steady on through
II. Smaller is better
Pick a part of your business where you industry crisis.
When you are true to your company
want to see huge growth and pursue it
with complete focus, and don’t tell me “I and yourself, when you show people
want to see huge growth in my bottom that you are here to stay in the ebb and
line,” because what I’m talking about will flow of this industry, they will gravitate
result in an increase in your bottom line. to you, and you will see growth.
IV. Embrace change and
don’t waste your time
bank can operate in all 50 states withIt’s no secret that these have been tough
out being licensed in all of them, which
times for the mortgage industry. When the
means nearly six figures or more than
real estate market began its meltdown,
$65,000 in savings per licensed mortgage
everyone pointed fingers: Was it the fault
broker per year. This can add up to an
of the Realtors? The lenders? The brokers?
enormous annual savings for a mortgage
Needless to say, the brokers took the
company, depending on the number of
brunt of the criticism and became a scapestates in which they do business. Also,
goat of the market crash. Brokers were getsome banks are in trouble
ting a bad rap, making it
and the Federal Deposit
more difficult to be a seriInsurance Corporation (FDIC)
ous option to customers.
wants them cleaned up,
Federal and state regulawhich also makes this an
tions were becoming more
attractive option. The downstringent so brokers were
side to this option is that, no
required to do more papermatter how well -capitalized
work and find new
a mortgage company is or
approaches to their work. If
how much the deal will help
that wasn’t enough, it startthe bank, regulators may not
ed to become more clearer
allow such a deal to move
that lenders were going to
past initial conversations
cut back on the number of
because in the end, they
brokers they used—or stop “Mortgage companies
often do not want to see a
using them altogether.
that are running a
mortgage company buy a
It was obvious there were
clean and reputable
bank.
going to be big changes
operation should be
ahead for our industry. To a
able to adjust and
Starting a bank: This
certain extent, it was
move
with
the
market.
option requires a large
inevitable. But how is a
amount of capital to
mortgage company to surBut flexibility is key,
get started ($15 milvive, let alone thrive, in this
and in some cases,
lion-$30 million). It is
kind of environment?
changing with the
also very difficult and
The first step is to
market could mean
extremely time conaccept the changes on the
suming to get approved
horizon. Mortgage compa- changing your business
by federal regulators.
nies that are running a
model altogether.”
clean and reputable operation should be able to adjust and move Applying for your own Full Eagle FHA
direct lender license: This is incrediwith the market. But flexibility is key,
bly difficult to pursue from scratch
and in some cases, changing with the
because in order to meet the criteria
market could mean changing your busirequired for federal approval, a comness model altogether.
pany needs experience, infrastrucOne way to do that is to become a
ture and a back-office among others.
direct lender. If the brokers become the
Approval can take a long time to
lender, they can offer more options and
obtain and the process can be
better service to their customers and help
extremely time-consuming.
insure that they won’t be shut out by
lenders. But with a major change like this
comes many daunting challenges, from Becoming a branch of a federallychartered bank: By doing this, the
learning to do business on a new software
mortgage company becomes part of
system, to educating employees that the
the bank. The benefit is that the
shift is a positive one and not negative.
mortgage company becomes a
There are several ways to become a
direct lender, but the downside is
direct lender and adapt to today’s econthat the mortgage company owners
omy. Each one has its own pros and
must essentially walk away from
cons. Here are a few of the options:
Josephine Nicholas runs her own PR
agency, Insert Catchy Headlines. She specializes in mapping out individualized
media campaigns, and offers a comprehensive array of services to handle the
diverse PR needs of her clients. Her
clients have appeared regularly as local
media experts, and have also appeared
in other national and local media outlets, including, but not limited to,
MSNBC, Fox Business News, CNN, and
NPR; in the Wall Street Journal, Reuters,
The New York Times, The Washington
Post, Financial Advisor Magazine,
Financial Planner Magazine, CPA
Magazine, and various entertainment
and lifestyle outlets. Josephine is passionate about giving back to others, and,
together with siblings Gibran, Jaad and
Jihan, runs Party with a Purpose, the
Nicholas family’s non-profit arm. She
may be reached at by e-mail at
[email protected] or by phone
Buying a bank: A federally-chartered
at (734) 385-6170.
37
NOVEMBER 2010
An entrepreneur specializes in seeing
By Joshua Shein
V. Get rid of the desert
mentality and think like
an entrepreneur
The New Mortgage Company:
Changing Your Business to Thrive
in Today’s Market
They say insanity is doing the same
thing over and over and expecting a different result—I find too many people
that are doing this in their businesses.
Holding onto old mentalities, ways of
doing business, preconceptions, marketing strategies, and so on, will get you
nowhere but left behind. It’s important
that we don’t waste our time in 2011.
For example, let’s take women in executive positions, or as leaders, are any of us
still stuck in the old mentality in this regard
or are we recognizing that, as more people
are looking at alternative forms of income,
we are seeing more and more women
make the leap towards being an entrepreneur and taking leadership roles across the
board? Along with their market knowledge, women have a tendency to ask the
most personal of questions in a natural
way, and this sets the stage for relationship
building; we know that true relationships
with clients, vendors and peers are the
foundation of any successful business, and
that relationship building is an essential
skill for growing in this market.
Growing in 2011 will require that we
don’t waste our time with the old ways
of thinking and embrace change.
Speaking of change, how many of you
are using the “new” social media tools—
Facebook, Twitter, and more? If you are
not, commit to using one or more of these
tools going forward. When you do, remember that the key to leveraging social media
for business is to use it as a platform to provide your network with valuable, timely
and relevant information. In this age of
information overload, people are constantly being bombarded with an overwhelming
flow of information and noise. This means
that people don’t need more information
… they need relevant information. If you
are the one providing it to them, it elevates
your value and transforms your network of
friends, clients and prospects into a referralgenerating sales force.
Also, if you are in management,
embrace change when it comes to how
you relate to your employees; those who
succeed and grow in 2011 will be those
taking a regular pulse of their employees.
Be well aware of the unique value contributions your team members make, and
you will be uniquely equipped to position
employees in just the right places in the
company where they will thrive; thereby
growing your business. Remember, companies that grow are companies that consistently change with their environment
and grow to meet the needs of their markets, engendering customer loyalty.
what others have seen and thinking about
it in such a way that nobody has thought
about it, thereby creating an innovative
idea. This initiative then creates a spark of
change, which leads to improvement in
whatever area of humanity they are contributing to with the idea they’ve created.
Others look at these situations and see
only the “desert” around them—dry,
empty, hot and an environment in which
it’s virtually impossible to succeed. If you
are, instead, someone who is willing and
able to convert a new idea or invention
into a successful innovation, you will see
tremendous growth in 2011.
I firmly believe that the great upside
to the massive amounts of tragedy
we’ve seen is that men and women who
felt stuck in certain positions and afraid
to pursue their dreams are now free—
if not forced—to pursue their passions.
The economy has forced people to reevaluate their priorities, reassess their
skills and pursue entrepreneur mindsets without being held back by a job to
which they feel tied down. If you are
facing changes, take a moment to look
at things with the entrepreneur’s hat
on, and see how that helps you grow.
Market changes have also caused a
significant shift in the needs and wants of
consumers across the board. In any
industry, an innovative entrepreneur
who identifies and addresses this shift
creates an unbeatable connection with
consumers. Deep inside us all, we have a
desire for our vendors to know our
names, and to supply our needs because
they anticipated them before we even
voiced them. When we address this
desire and do everything we can, at our
own expense, to instill trust in skeptical
consumers, we will see a significant
upturn in growth.
their company and hand ownership
over to the bank.
Consolidating or merging with an
established direct lender: A direct
lender will already have the infrastructure and warehouse capacity in
place to offer a variety of loans.
Ideally, the mortgage company brings
additional state licensing to the table,
as well as the ability to bring in a larger volume of customers. This option
requires a lot of legwork because the
mortgage company will have to apply
for lender licenses in every state in
which they operate, and all the licenses must become effective at the same
time in order to close on the merger.
38
Merging with a lender involves lots of
lawyers, state licensing agencies, paperwork and meetings, meetings and more
meetings. That’s after finding a strong
candidate for a merger. One place to
look for a partner is through a trusted
compliance and regulatory attorney. Just
as they work to keep the mortgage companies in compliance, they may also
know of an FHA Full Eagle direct lender
who runs a clean operation and is looking to make a change or expand.
With a merger or any of the other
options, shifting from mortgage broker
alone to both broker and direct lender
will require compliance and software
updating, training all employees on the
new systems and—perhaps the most
challenging change—a major shift in
corporate culture.
The broker mentality used to be, and
for some still is, that there are an infinite number of lenders to go to try to
get the loan approved and the product
mix is diverse. The broker’s approach is
focused on the sales cycle, as well as
analysis and collection of data and documentation, but not necessarily the
final underwriting or decision.
But when a mortgage company
becomes the lender, its employees must
look at every loan and every borrower differently, as if they were lending out money
from their own pockets. This can be a challenge for processors and loan officers who
are more accustomed to moving quickly
through high volumes of loans and having
numerous options of lenders with whom
they can broker a loan.
It is also a difficult adjustment for brokers who are accustomed to shopping
around for the lowest rates and best deal
to fit any situation, to now find themselves
limited to one rate sheet and only the
loan products that their company offers.
But it is important to remind these
employees that, on the upside, they can
work more efficiently, spend less time
searching for the best product and close
deals faster.
Still, it is a tremendous challenge for
the culture. Making the shift takes lots of
phone calls, meetings, discussions and
even lots of arguing. It takes a lot of
repeating the same message over and
over and over again. It means reminding
employees that it is no longer an option to
go somewhere else because the rate is
slightly better or because one lender didn’t approve a loan, but that they can talk
to the underwriter and all the people who
will handle their loan from beginning to
end or from origination to close. And
reminding them that this is a good thing
because the loan is controlled in-house
and they can close loans faster.
It also means making compliance
changes: Figuring out what new documents and disclosures will be needed
as a direct lender to close a loan, what
a loan submitted from an originator
will look like and how to streamline the
process of submissions. A new software
system may also be required to move
loans through the system in a succinct
and cohesive manner.
Then, the mortgage company must
work hard to educate its employees
about the procedures necessary to close
deals and train them on new software
systems, while assuring them that with
every loan going through the same software package, workflow will improve.
It may take lots of Webinars, conference room training sessions, coaxing
and coddling to make them see these
the positives, but as employers, it is our
job to show it to them. When a mortgage company also becomes a lender, a
lot of new, scary things are thrown at
the employees, but new and scary can
also be very good.
As the shift takes place, many brokers will likely realize they want to
work with a mortgage company that is
also a direct lender. And even with the
change, their job will remain much the
same: Locking loans, submitting loans
and addressing conditions on loans.
In the end, some employees will leave,
while others will stay. Some new ones may
also come along. Many will recognize that
there are not many other options out there
because there aren’t many brokerage firms
left these days. They will likely recognize
that change is a good option, and in this
market, it may be the only option.
Joshua Shein is chief executive officer of
1st Maryland Mortgage Corporation
d/b/a Great Oak Lending Partners in
Timonium, Md. He founded the company more than nine years ago and recently led Great Oak’s merger with 1st
Maryland Mortgage Corporation, which
made the company a FHA Full Eagle
direct lender. He may be reached by
[email protected].
Mortgage Professionals:
Where Are You Headed in 2011?
Gain ground in the new year with practical
marketing growth strategies
By Joy Gendusa
Do you feel like you have been treading least should be) readily eye-catching. This,
water ever since the housing bubble burst? If at minimum, ensures that your prospect at
you have, where is that getting you? It comes least views your message, even if the card
down to this: If you aren’t progressing, you’re eventually ends up in the trash. When created with a solid strategy, a postcard camregressing. That’s just the way it is.
The key to growing your business in paign goes a long way towards solidifying
this market is implementing a proac- your credibility in the community.
The fact is 79 percent of
tive strategy. Being reachouseholds read or skim
tive in this economy will
direct mail advertising,
kill you and marketing is
according to the 2010 DMA
the best way to combat
Statistical Fact Book.
the dire market and grow
Moreover, an International
despite industry trends.
Communications Research
Often, when things get
study found people were
bad, businesses react by
31 percent less likely to
cutting their marketing
ditch unopened mail than
budget. It seems like a good
delete unopened emails,
idea, and you start saying,
and 45 percent said they
“I could pay bills off, people
found direct mail less
won’t respond anyway,
“Being reactive in
intrusive than e-mail.
etc.” The problem with that
When you send out
theory is, if you market, this economy will kill
people will respond—and you and marketing is postcards, you boost visibility, a necessary element
actually in higher numbers the best way to comof an effective marketing
than if the economy was
bat the dire market
campaign. When you send
booming. But why?
and grow despite
out ads or invitations
Most businesses slash
industry trends.”
through the mail, about 80
their marketing in hard
percent of your prospects
times. But if you don’t, all
of the people who need mortgage serv- give you the chance to woo them. With a
ices will contact you because you’re the quality call to action and compelling
copy, you will see a great response.
only message out there.
Also, it’s important to choose the
So, what does that mean going forward? Let’s look at how you can take right marketing firm to handle your
your business on an upward journey in direct mail campaign. Be sure to find
2011. Here are three important strate- one that is willing to share previous
gies you can immediately implement to samples of their work. Also, ask if they
will work with you on the design (i.e.
get moving in the right direction.
They may not be flashy, but these give you free revisions, listen to suggesclassic marketing techniques are tions, etc.). It is often helpful to select a
proven to work … and why fix some- firm that handles printing and mailing
thing that isn’t broken? The key to suc- in-house. This can save you money on
cess in this medium is diligence, so be postage because they mail in bulk.
ready to commit. Single serving efforts
in these areas are a waste of money. By 2. Networking
the same token, if you apply them in a The dreaded word … networking. Not
consistent schedule, they flat-out work. always a pleasant experience, but it’s a
must-add to our list as another great form
of marketing, especially in the financial
1. Direct mail:
industry. It may be intimidating for some
Maximizing your return
people, but the effort is well worth it. The
on investment (ROI)
There are many options these days in the benefits really do outweigh the awkward
direct mail industry (letters, flyers, door moments of attending mixers. Simply
hangers, etc), but the most effective and having lunch with a few real estate agents
time-tested way to increase name recogni- can be a huge boost to your business.
No amount of direct mail ads or an
tion and get new leads is postcards.
Postcards deliver results because there is no amazing Web site design can fully conenvelope to open and the designs are (or at vey who you are to your prospects.
There is something about your physical
presence that lends credibility and
trust—so be real and not too sales-like.
Search for mortgage professional groups
and look over the events they host in your
area. Some of the best ways to establish
contacts in the community can be found
through these events. While you’re at it,
read Keith Ferrazzi’s book on networking,
Never Eat Alone: and Other Secrets to Success,
One Relationship at a Time. He is a power
networker, but even the most timid can
gain valuable lessons from his insights.
Remember, there is no more powerful form of marketing than word-ofmouth. People trust their peers far more
than they trust advertisers. Networking
gets people talking about you. And that’s
a necessity, since many mortgage professionals rely heavily on referrals.
If you are disinclined to put yourself out
there in the networking field, try to strategize. Who will make the biggest impact for
your business? Find out who the big influencers are in your community that can
spread the word about your company.
Select two or three individuals in your
area who are well-connected to the real
estate industry and introduce yourself to
them. Invite them to lunch, tell them about
your vision and convince them that your
business plays a role in this market. If all
goes well, you could see a significant difference in traffic just based on these individuals’ recommendations. That’s not too scary.
So direct mail and networking are Elvis
and The Beatles. They are the classics, but
what is the next big thing? Well, it won’t be
on stage—it’ll be on the computers … and
every smart phone in the building.
You probably guessed it! It’s social media.
For the more timid networkers among us,
online social networking is a dream come
true. It’s also effective, which is nice bonus.
3. Social media
Social media is great for posting funny pictures and interesting anecdotes from your
day, but is it really a viable growth strategy for expanding your business in 2011?
Quite simply … absolutely!
According to the 2009 Realtor
Technology Survey, 84 percent of real
estate agents engage in social media to
some extent. If you want their business,
you go where they are, and for the vast
majority of them it’s social media.
Two social media sites prime for targeting real estate agents are Facebook
and LinkedIn. Facebook wins the popular
vote, according to the same study, with
78 percent of respondents saying they use
the Internet colossus. LinkedIn, a business networking site, comes in at a very
respectable 58 percent.
Signing up for these sites is free, and using
them is actually quite simple. Register for an
account and take a few minutes familiarizing
yourself with the site and you will immediately be more comfortable with it.
For Facebook, you want to create a Fan
Page for your business to give realtors the
opportunity to connect to you. Also, search
for groups that may contain prospects. For
example, “Real Estate Agents Dallas” might
turn up a networking group of professionals for the Dallas area, and it would be a
great place to meet potential clients.
On LinkedIn, it’s even easier to make
business connections because that’s the
whole point of its existence! It allows you to
build connections with other professionals
and also get recommendations from past
clients to build your credibility. Use it to
post news and articles about your business.
Remember, nobody likes blatant advertising on social media. If you want to succeed, you need to offer valuable content
that subtly promotes your business. This is
especially true for Facebook and less so for
LinkedIn. Informative articles, facts, trivia
questions and contests are great ways to
involve people and market your business.
Dedicate yourself to executing these
three growth strategies, and you’ll be on
the right track to grow your business in
2011. This is a fantastic place to start, but
always remember to implement a complete marketing plan that integrates each
marketing element to get the most for your
marketing dollar. Of course, you could
always just keep treading water and hope
things work out, but do so at your own risk.
It’s never too early to start planning
ahead for 2011. Grab the reins to your
success and enjoy the ride.
Joy Gendusa is chief executive officer and
founder of PostcardMania. She began
PostcardMania in 1998 with nothing but a
phone and a computer and zero investment capital. By 2008, revenues reached
nearly $19 million and the company now
employs more than 150 people, prints four
million and mails two million postcards
each week representing more than 40,000
customers in over 350 industries. For more
information, call (800) 628-1804, ext. 342
or visit www.postcardmania.com.
39
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heard on the street
industry, has announced the company
has moved to larger office space to
accommodate recent, as well as future,
growth. The company has increased its
office square footage from 25,000 to
73,000 and has also more than doubled its workforce during the last year.
“As demands for mortgage services
increase, we needed to position our
company to handle that growth,” said
Rick Seehausen, president and chief
executive officer of LenderLive. “This
additional space enables us to meet
that goal as well as helps us be well
poised for the future.”
LenderLive is very active in providing comprehensive and component
based fulfillment services to lenders of
all sizes. The company has experienced
rapid growth in all areas of its business
including contract underwriting, closing coordination, doc prep, and title
and closing services.
For more information, visit www.lenderlive.com.
Great Oak Lending
announces merger with
1st Maryland Mortgage
Great Oak Lending
Partners has announced
that it has merged with
1st Maryland Mortgage
Corporation of Damascus, Md. The merger
makes Great Oak a direct lender with the
ability to fund up to $25 million a month
in loans. Great Oak was ranked number
one in Maryland for reverse mortgage production and volume for the fiscal second
quarter of 2010 by RMInsight, a provider
of data and analysis for the reverse mortgage industry. It has also been recognized
as one of the fastest-growing reverse mortgage companies nationwide. Great Oak
provides traditional mortgages on new
homes and investment properties, as well
as refinancing and reverse mortgages.
The merger combines 1st Maryland
Mortgage’s seven employees with Great
Oak’s 58 full-time employees. The new
company plans to hire an additional
20-30 people by the end of the year.
As part of the merger, Joshua Shein
was promoted to president and chief
executive officer of the new company.
The combined company will be called
1st Maryland Mortgage, but will operate under the name Great Oak Lending
Partners. Financial terms of the deal
were not disclosed.
“This merger will allow us to meet
all of our customers’ needs in-house,
from underwriting to closing to funding
loans,” Shein said. “These additional
services and our predicted growth over
the coming months reinforce our position as a major player in the mortgage
industry.”
Great Oak Lending has three offices
in Maryland and operates in seven
other states. The company plans to be
operating in another seven states by
the end of the year.
For more information, visit www.greatoaklending.com or www.greatoakreverse.com.
Aklero Risk Analytics
formed to serve loan
quality market
Aklero Process Solutions,
a provider of automated
data and document validity assurance for the
mortgage industry, and
Hall Underwriting & Consulting, a
mortgage risk analysis firm, have
merged to form a new company, Aklero
Risk Analytics Inc. The result of this
merger is a state-of-the-art loan quality and risk analytics company, combining Aklero’s Q-Close loan quality and
risk analytics platform with Hall
Underwriting’s experienced mortgage
loan quality analysts and forensic
underwriters.
Under the terms of the merger,
Aklero Process Solutions and Hall
Underwriting & Consulting will each
remain wholly-owned subsidiaries of
Aklero Risk Analytics. Aklero Process
Solutions President and CEO Brian
Fitzpatrick will serve as CEO of Aklero
Risk Analytics and Hall Underwriting
CEO Clayton Greenfield will serve as
president and chief operating officer.
“This merger is symbolic of what the
mortgage industry needs to properly ana-
lyze risk and ensure loan quality: A combination of experienced forensic analysts
and intelligent automation,” Fitzpatrick
said. “Loan quality is the keystone to the
industry’s recovery. As a result of this
merger, we’re now uniquely positioned
to set the bar when it comes to ensuring
loan file integrity and mitigating mortgage risk. We look forward to working
with players of all segments of the mortgage industry who share our goal.”
“The integration of our expert underwriting and forensic analysis staff with
Aklero’s automated deficiency detection and risk analysis tools have
enabled Hall Underwriting to take its
underwriting and quality audit services
to a whole new level. There are several
companies out there that can underwrite and perform mortgage loan quality control audits, but the combination
of this unique technology and our
expert analysts creates a solution that
quite frankly is unprecedented in this
industry and trumps the competition,”
said Greenfield.
For more information, visit www.aklero.com.
Altisource forms origination,
modification and loss
mitigation partnership with
Members United
Altisource Portfolio
Solutions, a provider
of knowledge process services related to
real estate mortgage portfolio management, asset recovery management and
Originating and closing loans these days can be very challenging. Lengthy
turn times, inexperienced underwriters, and high costs can contribute to
fewer closed loans.
“Protect your loans with GSF”
Contact the Client Relations Manager today at
1-877-494-4448
or [email protected]
NOVEMBER 2010
GSFSales.com
GSF Wholesale is the safe and secure place for all of your business.
Our experienced staff is dedicated to ensuring your loans are protected.
With seasoned underwriters, efﬁcient quality control department and
competitive pricing, GSF Wholesale is focused on you and your business
every day to meet the challenges of the new lending environment.
GSF Wholesale The Safe Place for
your business!
41
heard on the street
customer relationship management, and
Members United Corporate Federal
Credit Union, an $8.9 billion financial
institution that provides wholesale
investment, credit, payment and correspondent services to approximately 2,100
credit unions, have established a strategic
alliance to support Members United’s
credit union members.
“The alliance with Altisource, one
of the nation’s leading mortgage service providers, was established to help
Members United’s 2,100 member
credit unions navigate through these
turbulent economic times,” said Kevin
Brauer, senior vice president of member relations for Members United.
“Through this alliance, Altisource will
offer its origination, modification,
loss mitigation and real estate services, as well as technology, to credit
unions to help them effectively manage their distressed loans and mortgage application processing needs.
Using the power of aggregation, this
alliance will allow our members to
improve service and performance
while also reducing costs.”
Altisource leverages its 20-year
servicing heritage and more than
3,000 employees to provide products
and services to some of the most
respected organizations in their industries, including one of the nation’s
largest sub-prime servicers, government agencies and many lenders, servicers, investors, financial services
companies and hedge funds across the
country.
“Due to the unique nature of each
member’s business, an ‘off-the-shelf’
solution would not address our needs,”
said Tim Bruculere, vice president of
lending for Members United. “We
interviewed several companies, and
Altisource was the only provider who
understood our needs and offered tai-
lored solutions across our member
community.”
For more information, visit www.altisource.com or www.membersunited.org.
Mortgage Professionals
to Watch
James Bennett has been named
president of the Nevada region by
Stewart Title.
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Michael Dimech has been named
head of operations at Total Mortgage
Services LLC.
Chris Knowlton has been promoted
to the position of vice president of
technology and marketing of Inlanta
Mortgage and Inlanta has also added
John Malinger as its new underwriter.
Radian Guaranty Inc. has announced
the hiring of Brien J. McMahon as
chief franchise officer.
Embrace Home Loans has named Louis
Centrella and Wayne Ferguson as loan
officers for its Wilmington, Del. branch.
Meredith Boyd has been named
director of sales for Kirchmeyer &
Associates.
The Collingwood Group has
appointed Mary Lou Christy as the
company’s senior vice president.
Solidifi U.S. has named Mark
Critchfield and Tony Laurito as vice
presidents of business development.
Peter G. Butler has been named
vice president of national sales for
LenderLive Network Inc.
Chad Thomas Hagwood has joined
Beech Street Capital as executive
vice president of origination.
BluFi Direct Mortgage has announced
the promotion of Ken Emminger as its
new senior vice president and the hiring of Kimera Hobbs as its new
human resources manager.
Joe Drum has been appointed executive vice president of WFG National
Title Insurance Company.
;OL*P[`+YP]L:V\[O
:\P[L
6YHUNL*( ^^^JVTLYNLUJL[Y\Z[LKTLTILYJVT
invites its readers to submit any information, events, passages, promotions,
personal or professional occurrences
that seem appropriate and/or other pertinent data to the attention of:
Heard on the
Street/Mortgage
Professionals to Watch
column
Phone #: (516) 409-5555
E-mail:
[email protected]
Note: Submissions sent via e-mail are preferred. The deadline for submissions is the
1st of the month prior to the target issue.
StreetLinks SCORes with
new underwriting and
risk assessment tool
!"
"
"
43
NOVEMBER 2010
Fairway Independent
Mortgage Corporation
has announced that it is rolling out a full
suite of fulfillment services for financial
services companies who want to grow
their mortgage lending operations, but
Fairway Independent
Mortgage announces full
suite of fulfillment services
StreetLinks National
Appraisal Services has
announced the launch
of a new underwriting and risk assessment
appraisal review product, StreetLinks
Comparable Opinion Report (SCORe).
SCORe will provide lenders with a reliable
second opinion of the validity, accuracy
and appropriateness of the comparables
utilized in an original appraisal. SCORe is a
limited-scope, USPAP-compliant review
completed by an independent appraiser
with experience and geo-competency in
the subject’s specific market.
“Automated valuation models (AVMs)
rely on flawed or limited public data,
while out-of-market appraisers lack local
market knowledge and have no access to
local market data (MLS),” said Steve
Haslam, StreetLinks chief executive officer.
“The only reliable way to validate the comparable selection and the credibility of an
appraisal is by utilizing a second local
appraiser with the knowledge, tools and
data available to do so. SCORe accomplishes this at a speed and price far more
attractive than other credible and compliant appraisal review products.”
SCORe utilizes an independent, unbiased, local-market appraiser to review the
comparables selected in an original
appraisal. The SCORe appraiser, who is
proximate to the subject property with
access to the local market MLS, researches
the data to provide a second opinion of the
appropriateness and quality of the comparables selected by the original appraiser.
SCORe results provide underwriters and risk
managers the confidence and/or credible
criticism about the validity of the comparable selection which is the nucleus of the
appraisal process and the ultimate determinant of the final value opinion. A SCORe
report that contradicts the original appraiser’s comparable selection can also serve as
an FHA or HVCC compliant basis for lenders
to responsibly appeal the original appraisal
or to order a replacement appraisal.
For
more
information,
visit
www.streetlinks.com/SCORe.
may lack the capital, resources or infrastructure to do so. As a fulfillment services provider, Fairway Independent
Mortgage will be leveraging its experience and capital as a nationwide, fullservice mortgage banker. The company
funded over $3.5 billion in mortgage
loans in 2009 and is on pace to either
meet or exceed that volume in 2010.
By outsourcing their underwriting, processing and document preparation needs
to Fairway Independent Mortgage,
lenders, banks and credit unions can
expand their mortgage lending operations
while saving money and enjoying the benefits of Fairway’s state-of-the-art technology, fraud prevention tools, appraisal management services, and expert staff.
Fairway can also help financial institutions maintain compliance with regulatory
changes such as the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
The company will be offering four
different business solutions.
Fairway Advantage is an entry-level of
participation is for the originator who
only wants to provide minimal documentation, such as a loan application,
credit and income documentation and
rate quotes. Fairway processes and
underwrites the loan, reviews title documents and prepares the closing package.
Fairway Direct is designed for originators with minimal mortgage lending
experience who can provide mortgage
application and supporting documentation from borrowers and complete the
initial disclosures to meet regulatory
compliance. Fairway completes processing of the loan application by underwriting the loan, reviewing title documents,
and preparing the closing package.
Fairway Traditional is a traditional
third-party originator (TPO)/lender relationship in which the lender originates
and processes the loan, including ordering
the appraisal and title work. Fairway prepares the closing documents, schedules
the closing date and table funds the loan.
Fairway Correspondent is for originators
that want to fund their own loans through
bank deposits or warehouse credit lines,
Fairway performs the credit and collateral
analysis and readies the loan to close.
Following closing, the loan goes to Fairway’s
post-closing department, where Fairway
obtains any additional documentation, perfects the purchase of the loan and delivers
the loan into the secondary market.
For more information, visit www.fairwayindependentmc.com.
new to market
Advanced FICO Analytics
Incorporated into
Experian’s MBS solution
FICO, a provider of analytics and decision management technology, has announced that
Experian Capital Markets is adding, as an
option, the most advanced FICO credit
score to its CreditHorizons for Securities
solution. Sellers and investors of mortgage-backed securities (MBS) use
Experian’s CreditHorizons for Securities
to surmount the limitations of loan-level
data when analyzing credit risk in MBS.
The addition of the FICO Score, branded
by Experian as the Experian/FICO Risk
Model, will give RMBS managers, marketers and investors deeper insights for
evaluating creditworthiness of the
underlying mortgages in non-agency
loan pools.
CreditHorizons for Securities is used
to improve pricing strategies on the sell
side, while helping buyers make investment decisions with greater confidence
and improve risk management. The
FICO Score brings an added dimension
of predictive power, enabling users to
better assess risks of delinquencies and
defaults from securitized mortgages.
Investors benefit from using fresh
FICO scores instead of scores calculated
when loans were originated, since
recently reported changes in borrowers’
credit behavior will likely change their
credit risk.
“FICO is the dominant provider of
credit scoring solutions to the mortgage
industry,” said Jordan Graham, executive
vice president of scores at FICO. “As an
extension of this position, we are excited
to offer more comprehensive solutions to
support the needs of the secondary market and securitization process for US
mortgages. We believe this combination
of Experian Capital Markets and FICO
solutions will increase investor confidence and make for a more efficiently
functioning market.”
For more information, visit www.myfico.com.
Call FURST Conferencing
solutions for Mortgage Companies
CallFURST Audio Conferencing enables your mortgage company to communicate
immediately. We have a versatile suite of products that can support meetings of any size. We
offer Reservationless Audio Conferencing, Operator Assisted and Event conferencing all with
24 x 7 x 365 live help available.
44
How mortgage companies are using CallFURST Audio Conferencing
I Branch manager meetings
I Sales training and coaching
I Addressing problems with active loans in the pipeline
CallFURST Web Conferencing can be used to conduct live meetings, perform training,
provide remote help or give presentations via the Internet. In a web conference, each
participant sits at his or her own computer and is connected to other participants via the
internet. CallFURST live help is available 24 x 7 x 365.
How mortgage companies are using CallFURST Web Conferencing
I Borrower presentations
I First time homebuyer webinars
I Software and systems training for employees
We offer:
CallFURST Video Conferencing supports features such as Video Reservations, video
streaming and the latest technology allowing you to connect with end users regardless of
their platform or technology. Video conferencing is key to keeping business connected as
travel budgets tighten and the time we have to get things done is ever-decreasing. Using
Video Conferencing, you can be sure you have access to more personal attention and
training through our team of video experts, the latest in product innovation and proven
service and reliability to ensure your message is successfully communicated.
How mortgage companies are using CallFURST Video Conferencing
I Presentations to large groups
Lowest Pric
I Educational programs for branch ofﬁces
e Guarente
I Software and systems training for employees
e
If we can't m
eet or beat y
conferencin
our
g servicing
For more details on how CallFURST Conferencing
p
ri
c
ing, I will
give you a $
10 Starbuck
s gift card.
helps to improve your company's communications,
contact Joel Furst, Esq., President at
888-9-ITS-YOUR-CALL (888-948-7968)
or at [email protected]
Visit CallFURST.com
Call us at
888-948-7
968
to see how
we can sta
saving for rt
you
Wolters Kluwer offering
lenders new mortgage
information kits
Wolters Kluwer
Financial Services
has announced the availability of the company’s new mortgage application and processing kits. The kits can be used by
lenders to educate borrowers on the
mortgage process, helping them to
improve their financial literacy. The kits
can also help lenders expedite the application process in order to close more
loans; ensure disclosures are compliant
and provided to borrowers as required;
and make sure marketing activities are
consistent across branches.
Both the application and processing
kits can be customized to a lender’s
specific business, marketing and branding needs. The application kits can be
provided to borrowers in English or
Spanish. A standard mortgage application kit includes a letter outlining the
benefits of working with the lender for
their mortgage needs, a loan application with easy-to-follow instructions, as
well as several consumer education
pieces. The application kit helps educate borrowers upfront by providing
consumer education materials from
how to select a mortgage to closing cost
information. To help the lender ensure
compliance with federal disclosure
requirements, the kit also includes the
U.S. Department of Housing & Urban
Development’s (HUD) Settlement Cost
Booklet and The Consumer Handbook
on Adjustable Rate Mortgages.
Once the application is complete, a
lender can have Wolters Kluwer
Financial Services send the borrower a
mortgage processing kit. The kit contains
all of the compliance disclosures and
ancillary documents specific to the borrower’s loan that are required by federal
law to begin processing the mortgage.
Wolters Kluwer Financial Services
assembles the processing kit on behalf of
the lender by collecting borrower data
from them via the company’s Secure
Document Exchange (SDX) service and
printing, assembling and mailing the kit
directly to the borrower from the company’s secure fulfillment center.
“By outsourcing these compliance, fulfillment and distribution activities to
Wolters Kluwer Financial Services, lenders
can make their production and origination functions more flexible, adaptable,
and nimble while reducing cost and compliance risk,” said Jason Marx, vice president and general manager of the company’s Mortgage business line.
For more information, visit www.wolterskluwerfs.com/kits.
a la mode launches new
eSignature service
a la mode has
announced a dedicated client service team for enterprise users of its document eSigning solution, SureDocs. This
expansion is a response to rapid
SureDocs adoption among large
lenders and originators, who have
selected SureDocs because of the
unlimited usage pricing policy and the
built-in automation needed for larger
scale operations. All SureDocs clients,
regardless of volume, have unlimited
24x7x365 phone support from a la
mode’s headquarters in Oklahoma
City, Okla. access to a large training
library, and free online classes. Now
SureDocs enterprise customers will
gain even more services, including
access to a personal account representative who will assist them with integration, training, and other needs
unique to larger clients.
“We’re excited to provide this new
level of service to SureDocs enterprise
customers,” said Adam Calvery, president of the a la mode’s mortgage services division. “We’re proud of our long
standing reputation for excellent service and around the clock live expert
help, and this new level of service is a
natural evolution for our growing base
of enterprise customers.”
SureDocs is the document eSigning
solution designed specifically for the
mortgage lending industry, both in features and in pricing policies. Unlike
error-prone solutions that require manual signature tagging, SureDocs recognizes disclosure forms and automatically places signature tags. This automation eliminates the wasted time associated with resending documents for
additional signatures or initials.
For
more
information,
visit
www.alamode.com/suredocs.
The system serves as an important tool
for lenders by delivering timely and
precise income data to confirm original
verification information.
“As repurchase activity and
instances of fraud both continue to
rise, exact documentation is essential
in order for lenders to avoid excessive
obligations or undisclosed mortgage
debt,” said Janet Ford, senior vice president of The Work Number. “Point in
Time offers a ‘retro’ income verification
review that lends transparency to the
underwriting efforts that were performed at the time of origination.”
Point in Time uses a custom, automated workflow designed to capture and
reuse employer data by tracking and documenting agent progress and findings.
WE
ARE
With permissible purpose, it can also
access The Work Number’s unique
employer database of current and historical payroll data for more rapid delivery.
Point in Time presents a cost-effective
method to quickly re-verify a borrower’s
income at the point of loan funding without compromising data security.
For more information, visit www.equifax.com.
Wipro Gallagher Solutions
introduces loan processing
outsourcing tool
WiproGallagherSolutions
(WGS), a provider of
cost-effective, endto-end loan origination technology
and fulfillment services for mortgage
lenders, has combined its fully host-
REMN
ed and managed origination system,
NetOxygen Cirrus, with its loan processing services to form a complete
end-to-end loan fulfillment and servicing platform. This new business line
enables lenders to focus their efforts
on generating revenue, while using
WGS to perform the loan fulfillment,
loan sub-servicing and vendor management tasks.
WGS’ new offering was designed to
be a part of a long-term strategic solution for mortgage lenders as opposed
to a temporary way to cut costs. Among
other benefits, the outsourcing platform: Reduces operational costs;
increases speed to market; and
WHOLESALE
The Work Number
launches Point in Time
service for retro income
verification
At REMN, we understand that there’s nothing
ordinary about focusing on what’s important:
our customers. We recognize that continued
lifeblood of our business. We believe that every
application is precious and treat each file with
the respect – and urgency – it deserves.
Even better, at REMN, same-day approvals
are guaranteed. We promise extraordinary
service in an ordinary world.
Learn more at www.remnwholesale.com
Real Estate Mortgage Network, Inc. is located at 499 Thornall Street, Second Floor, Edison, NJ 08837. NMLS #6521. This information is for use by mortgage professionals only and should not be distributed to or used by consumers or third
parties. Information is accurate as of date of printing and is subject to change without notice.
NOVEMBER 2010
* Same-day decisions guaranteed if file is received by 11 a.m. EST.
We’re not
afraid to be
different.
business from our satisfied customers is the
The Work Number,
a service of
Equifax, has announced the company’s
newest product, Point in Time, a retro
income verification service that validates
and documents a borrower’s employment
and income at the point of loan funding.
Point In Time was created to respond to
market demands for loan level documentation to investigate repurchases and mortgage insurance rescissions.
According to Freddie Mac, a top
underwriting deficiency seen in their Q1
2010 reviews of performing and non-performing loans is income misrepresentation, resulting from inaccurate or insufficient data and calculation errors at the
time of loan origination. The volume of
loans being returned for some type of
data deficiency is significant. Through the
second quarter 2010, Fitch estimates that
the four largest U.S. banks have received
$10.7 billion in pending repurchase
requests from Fannie Mae and Freddie
Mac alone. And, government-sponsored
enterprises (GSEs) are requesting that
defective mortgages be repurchased at a
more rapid pace, which will put greater
resource strain on lenders needing to
prove underwriting due diligence.
The Work Number developed Point
in Time to help lenders, insurers and
investors manage the increasing volume of unstable loans by automating
and streamlining retro income verification for the quality assurance process.
45
new to market
improves customer service and the
ability to quickly adjust for production
peaks.
“Flexibility is the key component of
the WGS solution; our customers are
able to utilize WGS for complete end-toend fulfillment or for specific functions
within the loan process,” said Anil
Raibagi, general manager and business
head at WGS. “This new platform also
provides our services on a variable pricing structure, enabling clients to gain
the maximum skill sets.”
For
more
information,
visit
www.gogallagher.com.
DocuSign signs
partnership to promote
real estate transaction
productivity
46
DocuSign has announced
that it has entered into
a partnership with
Mosaic Corporation, a business process
optimization firm specializing in
paperless back office workflows, where
the DocuSign electronic signature service will be integrated with the docSTAR
Broker Central real estate software
product to create an end-to-end document and transaction management
solution specifically tailored for residential and commercial real estate
brokerages.
“Broker Central is a paperless document and transaction management
solution tailored specifically for the real
estate market. It allows real estate professionals to efficiently and effectively
manage real estate documents to drive
paperless transactions, improving customer satisfaction and the bottom
line,” said James Kingery, president of
Mosaic Corporation. “Now with the
inclusion of DocuSign, the number one
electronic signature service in real
estate within docSTAR’s Broker Central,
real estate brokerages have a complete
document and transaction management solution to better succeed in a
highly competitive real estate market
while making significant inroads with
green initiatives.”
Broker Central is a collaborative software-as-a-service (SAAS) offering from
Mosaic and docSTAR, a leader in document management software solutions. It
was developed to layer transparently on
existing workflows, minimizing interruptions in productivity. Broker Central
securely scans and stores paper documents, along with critical electronic
files, allowing for immediate retrieval.
With the integration of the DocuSign
electronic signature service, docSTAR’s
Broker Central will provide real estate
professionals the ability to manage the
entire real estate transaction from the
Web from offer to closing completely
paperless.
docSTAR’s Broker Central offers a
green, fully optimized, end-to-end electronic document and transaction management solution for residential and
commercial real estate brokerages and
marketing centers.
docSTAR’s Broker Central users will
join more than 30,000 real estate professionals eliminating paper and expediting real estate transactions with
DocuSign. Rather than driving across
town to get a signature or forcing
clients to find a fax machine, real estate
professionals use DocuSign to execute
agreements with buyers and sellers
electronically. With real estate forms
signed in minutes, not days, DocuSign
and docSTAR’s Broker Central will help
real estate professionals achieve higher
sales, increase client satisfaction and
maintain a competitive edge. Safe and
secure, the DocuSign electronic signature process is also easy to use and
legally compliant.
For
more
information,
visit
www.docusign.com/brokercentral.
CoreLogic and Blueberry
join forces on mortgage
fraud prevention tool
CoreLogic has announced
the integration of its
LoanSafe Fraud Manager
Suite with Blueberry Systems’ RELAY loan
production platform. LoanSafe Fraud
Manager is now directly integrated into the
RELAY workflow, so that acceptable loans
continue through unimpeded while problematic loans are automatically directed to
the appropriate user. As a result, RELAY
users will now enjoy a higher mortgage
fraud prevention rate with fewer resource
requirements.
“There are three facets to data
integrity,” said Lloyd Booth, Blueberry
Systems president. “Completeness, accuracy and truthfulness. Traditionally, LOS
vendors have focused only on the first
two. Even if the data entered is complete
and remains intact, garbage in is still
garbage out. Loan data still needs to be
authenticated at some point, especially
as today’s lenders are struggling to
regain the trust of investors. Our integration with LoanSafe Fraud Manager
addresses the truthfulness of loan data,
and will help lenders regain that trust.”
“Blueberry Systems has made a
major step toward moving fraud prevention to the front of the loan production process,” said Tim Grace, senior
vice president, fraud analytics for
CoreLogic. “Integrating LoanSafe Fraud
Manager into the mortgage workflow
enables lenders to comply with Fannie
Mae, Freddie Mac, and other mortgage
investors’ requirements while significantly reducing the need for human
interaction. This integration makes
mortgage loan processing faster,
cheaper, and optimally efficient.”
In contrast to most systems that
present an outdated ‘database of
record,’ RELAY employs a universal data
model, using its proprietary Conductor
technology, to integrate various systems and applications into a single
workflow, eliminating data silos and
the need for duplicate or staggered
data entry. And while most systems
only make the most recent loan data
available at any given time, RELAY’s
universal data model makes available
the various states of data as the loan
evolves, in real time, and highlights discrepancies. The bottom line is much
higher data quality that prevents costly
pricing variances and buybacks.
For more information, visit www.blueberrysystems.com or www.corelogic.com.
DataVerify products
seek to eliminate
short sale and
overvaluation fraud
DataVerify has enhanced
its fraud management
platform, DRIVE (Data Risk Intelligent
Verification Engine) to help mortgage
lenders identify and avoid potential short
sale and property flipping losses. As the
housing industry continues to struggle, short
sales have become more commonplace. A
homeowner sells his property for less than
the outstanding balance on the mortgage,
to avoid foreclosure and to permit the
lender to receive some return on the investment. At the same time, property flipping
cases have also been accelerating, primarily
as a result of depreciating property values.
“Our customers tell us these new tools
are working and the reason why they
work is because we apply what we learn
from our customers’ own experiences,”
said Steve Halper, president of DataVerify.
DataVerify has incorporated a national building permit dataset into DRIVE.
Currently containing 88 million permits
on properties in more than 4,000 cities in
the U.S., this data will allow lenders to
greatly reduce the amount of time and
resources spent manually calling individual building departments to request permit data on a specific property.
“The new short sale and property flipping fraud detection capabilities from
DataVerify meet and exceed all stated
industry needs today,” said Halper.
For
more
information,
visit
www.dataverify.com.
Your turn
invites you to submit any information
promoting new “niche” loan programs,
new products or any other announcement related to the introduction of a
new program, to the attention of:
New to Market column
Phone #: (516) 409-5555
E-mail:
[email protected]
www.windvestcorp.com
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the target
issue.
At United Northern, we give you the freedom to originate and succeed with our winning team.
About working with United Northern Mortgage Bankers
• Ongoing training and consultation with top industry executives • An in-house team to monitor SAFE Act compliance
• Access to in-house marketing services
• In-house underwriting
• Pricing support desk to ensure maximum profitability on each
• Most loans underwritten in 24 to 48 hours
loan, while maintaining a competitive advantage over the street
• Multiple valuation tools to research value
• Proven leading-edge technology (built on Encompass 360
technology)
• In-house valuation desk to help ensure accurate
values and responsive turnaround time
• Virtual office support
• Multiple established warehouse lines
• Licensing and regulatory compliance services
Limited room available for established Team Leaders and
Licensed Mortgage Originators. Become part of an
established 30-year Mortgage Banker with
a proven track record and success.
Learn about the great opportunities
available by making an appointment with
United Northern Mortgage Bankers Executive
Vice President Julio de Cardenas by calling
888-600-8808, ext. 1 or by e-mailing [email protected].
United Northern Mortgage Bankers, Ltd. Corporate NMLS ID# 7230 New York State Banking Dept. - Licensed Mortgage Banker – License #100724 New Jersey Dept. of Banking and Insurance – Mortgage Lender – License #L0046623 Pennsylvania Dept. of Banking – Mortgage Lender – License #20887 Connecticut Dept. of Banking - Mortgage Lender - License #20372 Massachusetts Div. of Banks and Loan Agencies - Mortgage Lender & Mortgage Broker – License #MC5070
North Carolina Commissioner of Banks – Mortgage Lender – License #L140365 South Carolina State Board of Financial Institutions – Supervised Lender – License #S7,461 Florida Dept. of Financial Institutions - Mortgage Lender - License
#ML0700679 Senior Security Home Advantage is a lending area of United Northern Mortgage Bankers, Ltd. Direct FHA Endorsed Lender
Appraisal Management
Company
Coester Appraisal Group
7650 Standish Place, Suite 107 • Rockville, MD 20855
www.coesterappraisals.com
(888) 485-1999 Ext. 2
We are a premier National Appraisal Company since 1970.
We have a complete product line for your entire organization.
We guarantee HVCC and FHA regulatory compliance.
Let our experience work for you. The way valuations should be.
Branch Manager
Closing Gifts
Guaranteed Home Mortgage Company, Inc.
108 Corporate Park Drive, Ste 301
White Plains, NY 10604
888-329-GHMC • www.joinguaranteed.com
Cruise4Two-Loan Incentives
1-866-541-8077
www.Cruise4Two.com
Find out what Guaranteed can do for you.
Branch Program for Professionals. It's what we do.
Increase your Loans,Get the Edge & Generate More Referrals!
Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,
the Bahamas or the Western Caribbean (up to a $1798.00 value) only
when they close a loan with you. Only $159.00 per certificate!!
Compliance Consultants
StreetLinks National Appraisal Services
(800) 778-4788
www.StreetLinks.com
[email protected]
There’s only one avenue to guaranteed appraisal performance!
With a commitment to doing business the RIGHT way, StreetLinks
is bringing real value as a PARTNER, not a vendor.
48
• We attract and retain the best appraisers – Our appraisers set
their own fees and our peer-to-peer approach attracts appraisers
that simply won’t work for other AMCs
• IQ Select™ proprietary order assignment methodology assigns
based on proximity, service and quality – not lowest fee!
• 100% Manual Quality Control – every report is manually
pre-underwritten by a USPAP certified appraisal underwriter
• Certified compliance with appraiser independence requirements
AND INTRODUCING SCORe™ - a revolutionary approach to
appraisal validation. Credible 2nd opinions on comp selection
from licensed, local appraisers. Stop Guessing. Start Knowing!
Inlanta Mortgage
W229 N1433 Westwood Drive, Suite 103
Waukesha, WI 53186
www.inlanta.com • 262-513-9853
Established in 1993 and headquartered in Waukesha, Wisconsin,
Inlanta Mortgage is a multi-state mortgage banking company committed to delivering superior service to our branch clients.
For more information, call 262-513-9853 or visit www.inlanta.com.
LENDERS COMPLIANCE GROUP
167 West Hudson Street - Suite 200
Long Beach | NY | 11561 | (516) 442-3456
www.LendersComplianceGroup.com
The first full-service, mortgage risk management firm
in the country, specializing exclusively in mortgage compliance.
iServe Residential Lending
www.iservelending.com
[email protected]
415-298-2500
iServe offers a complete product mix - aggressively priced, with
hassle-free service & turntimes. Branching & Loan Officer
opportunities available nationwide. For a change, focus on
production, quick closes & a good night's sleep!
United Northern Mortgage Bankers......888-600-8808
Branch Manager
Limited room available for established Team Leaders and
Licensed Mortgage Originators. Become part of an established
30-year Mortgage Banker with a proven track record and success.
Pioneers in outsourcing solutions for mortgage compliance.
Our Compliance Team Will:
Leverage your existing employees.
Improve your productivity.
Collaborate on projects.
Make the most of your current technology.
Bring innovation to your company.
Be a strong cultural fit.
Free you to focus on your core competencies.
Give you access to world-class expertise.
Lower your total operational costs.
Brokers United ........................................877-710-0948
Consulting & Branch opportunities. Exclusive opportunities with a
top Federally Chartered Bank, Mortgage Banker and/or Mortgage
Banker/Broker Platform. Email Jeff Flees at [email protected].
Contact Management/CRM
Branch Recruitment
RealEstateBestJobs.com ....................201-489-0256
Freedom Mortgage Corporation
www.fmbranch.com
[email protected]
800.220.9498
Currently working with various bankers & federally chartered banks.
Seeking established, new branches & Loan Officers Nationally. We
are a top recruiting firm handling all types of mtg positions.
WorkCenter CRM ....................................877.498.6888
A CRM & contact management solution designed for mortgage
professionals. Automated campaigns & LOS synchronization make
WorkCenter an intuitive timesaver for staying in touch with clients.
Continuing Education
Freedom Mortgage Corporation, The BEST Branch Solution, Period.
Church Financing
GSF Mortgage
15430 W Capitol Dr. Brookfield, WI 53005
1-877-494-4448
www.gsfprobranch.com
Be in business for yourself, but not by yourself. Join GSF Mortgage's
Professional Branch Network. Enjoy freedom and stability and reap
the rewards. Signing bonus for Branch Managers, retain 100% of
your commissions. Absolutely NO files fees, NO splits
CONCORD CHURCH FINANCE
NATIONWIDE FINANCING FOR CHURCHES
ONLINE [email protected]
800-926-0399 • Fax: 858-756-8108
• Church Purchase & Construction • $100,000 to $2,500,00
• Church Refinance & Cash Out • Churches all 50 states
• 75% of Appraised Value • 20 Yr. Fixed Rate
Abacus Mortgage Training and Education
PO Box 780
Summerfield, NC 27358
888-341-7767 • www.GetYourEd.com
NMLS approved 20 hour Prelicensing Education
NMLS approved Continuing Education
Live Classroom Instruction, Web Delivery and Private Events
The SAFE-Smart ExamCram, Powerfully Innovative Test Prep
Continuing Education
MSS Learning Center
(800) 963-1900
www.MortgageSuccessSource.com
Email: [email protected]
Time is running out...are you ready?
Document Preparation
Mortgage Banking Systems - ProClose
1360 Beverly Rd. Ste 200, McLean, VA 22101
800-783-2283 · [email protected]
www.ProClose.com
ProClose provides compliant closing documents and software for
Residential Mortgage Lending. Created with closers in mind,
we help make a lender’s staff more efficient and supported.
Events
NYC Real Estate Expo LLC
Anthony Kazazis - Director
[email protected] • www.nycrealestateexpo.com
646.210.2545 • 914.763.8008
“The Expo for Real Estate Professionals"
For ongoing Networking Events throughout the year please visit
www.nycnetworkgroup.com.
Pass the S.A.F.E. Act Test, meet your 20 hours of Pre-licensure,
and complete the 8 hours of Continuing Education you need
• The Ultimate Test Prep Kit and Test Prep Boot Camps – Cover
everything to pass the S.A.F.E. Act Test — on your first try.
• 20-hour Pre-licensure - Packed with everything to successfully
complete your pre-licensure requirements.
• Continuing Education - Exciting, NMLS approved courses that
meet your Continuing Education needs and build your business.
Robertson | Anschutz
800-343-7160
[email protected]
www.radocs.com/info.html
Hard Money/Private Lending
Mortgage Loan Closing Document Preparation & Compliance Services
Fulfillment Services Including Pre-Funding Review & Post-Closing
Interfaces with Leading Loan Origination Software Systems
Foreclosure – Loss Mitigation Services
ACC Mortgage, Inc.
932 Hungerford Drive #6 • Rockville, MD 20850
240-314-0399 • 240-314-0336 fax
WeApproveLoans.com
Direct Mail
Best Rate Referrals ............................................800-811-1402
Document Preparation (SaaS)
We are doing traditional subprime lending, fix & flip lending and
hard money lending.
Mortgage marketing company with decades of combined experience providing quality leads, mailers, lists and dialer products.
www.bestratereferrals.com & www.mortgageleads.org
49
Windvest Corporation ............................877-285-0777
Your Complete Mortgage Marketing Solution.
Call Us Today!
(800) 922-9860
www.envisiondirect.net/catalog/mortgage.htm
Mortgage Loan Closing Document Preparation & Compliance Software
Loan Documents and Compliance – Web-based/SaaS – Easy to Use
Intuitive – Secure and Reliable – Integrates with Leading LOS
Free Setup and Support – Extensive Compliance Audits
Education
Doc Management
Errors and Omissions
Insurance
CB Malaga Insurance Services LLC ......877-245-5887
Insurance broker providing errors & omissions (E&O)
insurance to mortgage brokers and bankers. All loan types.
Available in 22 states. www.CBspecialty.com
Advanced Data is a leading national provider of data services,
streamlining income and employment verification with proprietary
software. Clients can submit 4506-T directly through Encompass360.
Also ask about our AVM and flood services!
Platinum Credit Services, Inc.................631-299-2084
Tax return vertification (4506 tax transcript done in less than
24 hours in most cases). Call Lorenzo Pugliano, President
and CEO at 631-299-2084.
Bookmark this!
Access these
listings online at
nmpmag.com/directory_list
NOVEMBER 2010
DocVelocity is an end-to-end paperless solution designed to simplify the loan origination experience. Imagine having all your documents in the loan process as electronic files, all online, from preapproval to closing. DocVelocity provides: Fast and easy loan
delivery to any lender … Automatic doc sorting, naming and filing
… Real-time online document sharing for anyone you choose …
Friendly and intuitive user interface … No start-up fees, and free
training and support. DocVelocity addresses important compliance issues while giving your office the competitive advantage of
being paperless. It streamlines all aspects of the mortgage
process and most important, it does so in one easy-to-use and
inexpensive package. Its newest version, DocVelocity 2.5, adds
over 50 new features and enhancements to make the best paperless office even better. DocVelocity is the flagship product of
Paperless Office Solutions, Inc., a wholly owned subsidiary of
Flagstar Bancorp. Visit www.docvelocity.com to find out more.
North Lake College - Specialized Education In Mortgage Banking.
Earn An Associates Degree in Mortgage Banking From the First Fully
Accredited Mortgage Banking Degree Program in the U.S. For
Information About Our 30 Year Program email:[email protected].
Advanced Data
(800) 537 - 0458
www.advanceddata.com
[email protected]
DocVelocity
www.docvelocity.com
(877) 362-8356
[email protected]
North Lake College
5001 North MacArthur Blvd, Room T-231-C
Irving, TX 75038
(972) 273-3467 • http://www.northlakecollege.edu/
Income Verification Services
• Specializing in Official Snap Packs for Greater Open Rates
• Envelope Mailers, Business Reply, Postcards and Much More
• Targeted Mortgage Lists with Many Selects
• Complete Design, Printing and Mailing Services
Docs on Demand
800-343-7160
[email protected]
www.docsondemand.info
Specializing in rehab loans for property investors in So. CA.
Up to 60% ARV, 12.99% fixed rate, 3.5-5 points, 1 yr. term.
Fast & professional service since '94! Visit windvestcorp.com!
Loan Management Systems
Jumbo
Retail Branch
Xetus ....................................................877-GO-XETUS
XetusOne is a powerful, easy-to-use loan management system
that streamlines loan processing. Our affordable SaaS applications
are lenders #1 choice for origination, subordination & modification.
Sign up with the
Premier Jumbo Lender
www.ingloans.com
877.464.0555, option 2
Move your Jumbos to a better neighborhood. ING Mortgage is
your home for Portfolio loans up to $3,000,000. We offer aggressive
pricing and simple guidelines in all 50 states.
Big Loans. Low Rates. Great Value.
Leads
AAA Refi Leads.....AAA Refi Leads.....AAA Refi Leads
Learn how I went from failure to success by mailing cheap refi
letters from home, closed 71 loans & made $248,954.62 last yr.
I’ll show you exactly how I did it. Go to: www.Refi-Leads.NET
50
Internet’s Leading Consumer Mortgage Marketplace
Attracting over 7 million unique
consumers every month
www.Bankrate.com • 561-630-1257
Reach affluent and creditworthy consumers who are in-market and
ready to transact. Bankrate is a consumer direct Web site, NOT a
lead aggregator. Qualified leads for every sized budget, and pay
only for performance. No set up fees! No contracts! No risk!
• Reach self directed, highly qualified consumers that are actively
searching for mortgage loans
• Geo-targeting – reach the right consumers in the right markets
• Our proprietary Advertiser Portal gives you complete control
over your campaigns, budgets, and performance reports.
• YOU determine your daily/weekly/monthly budget
• Pay only for consumers who click on your listing
• NO cancellation fees
Loan Origination Systems
Calyx Software
800-362-2599
[email protected]
www.calyxsoftware.com
Calyx Software, the #1 provider of mortgage solutions is dedicated
to offering reliable and affordable software that streamlines, integrates and optimizes the loan process. Find out how PointCentral
can streamline your business and create compliant processes today.
Mortgage Builder Software
24370 Northwestern Highway, Suite 200
Southfield, MI 48075
800-460-5040 • www.mortgagebuilder.com
End-to-end LOS system for multi-channel lending.
PreQual thru Interim Servicing. Includes all back-office functionality;
Underwriting,Secondary Marketing,Post Closing and much more
SaaS, ASP and Client Server delivery options.
SM
www.mortgageloan.com • 877-390-4750
MortgageLoan.com is the largest online directory
for mortgage professionals and a favorite of
consumers shopping for mortgage loans.
Our network attract over one million visitors per month. Our paid
lead program as well as our free lender directory will help you connect with targeted new consumer traffic from with high-intent consumers searching online for the right mortgage lender.
Are you a broker/owner or current branch manager looking to
expand your business into Mortgage Banking with FHA capabilities?
Then our PARTNER BRANCH ADVANTAGE© program is perfect
for you. We are offering you all the benefits of partnering with an
established lender while still enjoying your independence.
Mortgage Concepts is a nationwide FHA Direct Lender with a 16
year long reputation of excellence.
YOUR SUCCESS IS OUR SUCCESS!
For more information contact THOMAS R. SIRICO, Vice President
of Business Development at (917) 923-1472 or email at
[email protected].
We look forward to sharing our services with you!
Secondary Marketing Consulting
Broker to Banker Services.com ..........(951) 746-3075
We complete your applications for approval
Save the time and hassle
contact: brokertobankerservices.com
Title
Regulatory/Compliance
Try us risk-free! Call 561-630-1257
or visit www.bankrate.com/cpcprogram/ for more details.
MortgageLoan.com
(800) LOANS-15
www.mortgageconcepts.com
Comergence Compliance Monitoring, LLC
630 The City Drive South, Suite 205 • Orange, CA 92868
Office: 714-740-9000
www.ComergenceCompliance.com
Comergence Compliance Monitoring is the mortgage industry’s only
Complete broker desk management software and outsource solution
for TPO management and monitoring. We can supplement lenders inhouse management and monitoring resources departments.
Intracoastal Abstract Co. Inc.................516-358-0505
Privately owned & operated full service title insurance agency
in NY, NJ and FL, with affiliates throughout the US & Canada.
Escrow Agent in Florida.
www.intracoastalabstract.com.
Wholesale/Correspondent
BankFinancial ..........................................800-894-6900
We have money to lend for apartments, $250M to $2MM, up to
75% LTV. We offer competitive rates, fees & terms. We’re committed to helping you and your clients close the deal. Call us.
Loan Incentives
If your ad was here, you would be seen by 191,181 Mortgage
Professionals looking for resources to help them in their business.
Cruise4Two-Loan Incentives
1-866-541-8077
www.Cruise4Two.com
Increase your Loans,Get the Edge & Generate More Referrals!
Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,
the Bahamas or the Western Caribbean (up to a $1798.00 value) only
when they close a loan with you. Only $159.00 per certificate!!
The Resource Registry is a directory of lenders (wholesaler or retail that
are recruiting), affiliated services and resources that is seen
by more than 191,181 active Professionals.
Call 888-409-9770 ext 4. to register your company.
Wholesale/Residential
Wholesale/Residential
Wholesale Reverse Mortgages
NATIONWIDE Equities
Flagstar Wholesale Lending
www.wholesale.flagstar.com
(866) 945-9872
[email protected]
Flagstar Wholesale Lending, a division of Flagstar Bank, is one of
the nation’s largest wholesale and correspondent mortgage
lenders, providing the technology, products, service and support
that independent mortgage brokers, correspondents, and bankers
need in today’s mortgage arena. In the ever-changing environment of mortgage banking, Flagstar takes pride in accommodating the specific needs of each customer. At Flagstar, we understand that you need every available advantage to stay ahead of
the competition. This is why we provide multiple technology
options to meet your needs to register, lock, underwrite, close,
fund and deliver your loans. Our wholesale website
(wholesale.flagstar.com) and the loan processing tool Loantrac
provides our customers with the functionality that make it easier
and faster to close loans, saving you time and money! Visit wholesale.flagstar.com to learn more.
Call 888-409-9770 ext 4.
to register your company.
Terrace Mortgage
4010 W. Boyscout Blvd., Suite 550
Tampa, FL 33607
866-934-4631 • www.terracemortgage.com
We offer competitive pricing and fast turn-times for FHA, VA,
Conventional, and USDA programs without having a retail presence in the industry. We are a wholesale lender with 22 years of
experience and believe in exceptional service.
Nationwide Equities Corporation
201-529-1401
www.nwecorp.com
For Licensed Mortgage Brokers in NY, NJ, CT, PA and FL
No HUD Approval Required – Live Help Desk
Will Provide Training at Our Office or Yours
48 Hour Underwriting - Get Paid Within 48 Hours of Funding
Lykken on Lending is a weekly 60-minute show hosted by mortgage veteran of 37 yrs, David Lykken, along
with special guest Alice Alvey & Joe Farr as well as featured special guests. Each week we provide our
listeners with up-to-the-minute information of what is happening in mortgage and housing industry.
Sign-on weekly at nmpmag.com/lykkenonlending
51
www.NAMBWEST.com
Visit www.NAMBWEST.com for updates.
Exhibitors will receive a complimentary ad in the
December issue of the National Mortgage Professional
NOVEMBER 2010
For more details on Exhibiting and Sponsorship, please contact
Kinsley at 303-798-3664 or [email protected]
Join the 2010 NAMB/WEST Conference
December 4-6, 2010 at the MGM Grand Las Vegas!
Exhibitors and Sponsors
COMPANY
WEB SITE
PAGE
Abacus Mortgage Training and Education .......... www.getyoured.com ..............................IL3, 19 & 39
ACC Mortgage .................................................. www.weapproveloans.com ....................................30
ACT Appraisal .................................................. www.actappraisal.com ........................................20
American Toner & Ink ........................................ [email protected] ....IL1 & 5
Bank of Internet USA........................................ www.bankofinternet.com ....................................32
To submit your entry for inclusion in the National Mortgage Professional
Calendar of Events, please e-mail the details of your event, along with
contact information, to [email protected].
BankFinancial.................................................. www.broker.bofi.com ..........................................36
Best Rate Referrals, LLC .................................... www.bestratereferrals.com ..................................32
DECEMBER 2010
APRIL 2011
Caliber Funding ............................................................................................................................20
Saturday-Monday, December 4-6
Sunday-Wednesday, April 3-6
CallFurst Conferencing...................................... www.callfurst.com ..............................................44
NAMB/WEST 2010
MGM Grand Las Vegas
3799 Las Vegas Boulevard South
Las Vegas
For more information, call (703) 342-5900
or visit www.namb.org.
2011 National Association of Mortgage
Brokers 2011 Legislative & Regulatory
Conference
Hyatt Regency Washington on Capitol Hill
400 New Jersey Avenue NW
Washington, D.C.
or visit www.namb.org.
Calyx Software ................................................ www.calyxsoftware.com ................................10 & 32
CB Malaga Insurance Services LLC ...................... www.cbspecialty.com ..........................................33
CMG Mortgage, Inc. .......................................... www.homeownershipaccelerator.com ....................21
Comergence Compliance Monitoring, LLC .......... www.comergencetrustedmember.com ..........17 & 42
Crednology Inc................................................. www.crednology.com ..........................................36
Envision Direct ................................................ www.envisiondirect.net/catalog/mortgage.htm ......15
FEBRUARY 2011
First California Mortgage Company .................... www.firstcaldictionary.com ..................................32
Sunday-Wednesday, February 6-9
Flagstar Wholesale Lending .............................. www.wholesale.flagstar.com ....................Back Cover
Franklin American Mortgage ............................ www.franklinamerican.com ..................................23
Freedom Mortgage .......................................... www.fmbranch.com ......................Inside Back Cover
Frost Mortgage Lending Group .......................... www.frostmortgage.com/nmp ................................6
Gateway Mortgage Group, LLC .......................... www.gatewayloan.com ........................................32
GSF Mortgage Corporation ................................ www.gsfprobranch.com ................Inside Front Cover
Guaranteed Home Mortgage.............................. www.joinguaranteed.com ....................................13
Tuesday-Friday, February 22-25
Sunday-Wednesday, May 1-4
I.C.E. Inc./Infinite Creative Enterprises, Inc......... www.icesigns.com ................................................24
Mortgage Bankers Association National
Mortgage Servicing Conference & Expo
Gaylord Texan Hotel & Convention Center
1501 Gaylord Trail
Grapevine, Texas
or visit www.mortgagebankers.org.
Mortgage Bankers Association’s Loan
Production Conference
The New York Marriott Marquis
1535 Broadway • New York, N.Y.
iServe Residential Lending, LLC ........................ www.iservecompanies.com ....................................4
Kinecta Federal Credit Union ............................ www.loankinection.org ........................................23
Lender411, Inc................................................. www.lender411.com/register ................................21
MBSauthority.com............................................ www.mbsauthority.com ........................................21
Mortgage Concepts .......................................... www.mortgageconcepts.com ................................12
Mortgage Investors Corporation ........................ [email protected] ..................................10
Mortgage Bankers Association’s National
Secondary Market Conference & Expo
The New York Marriott Marquis
1535 Broadway • New York, N.Y.
GSF Funding .................................................... www.gsfsales.com ................................................41
Inlanta Mortgage.............................................. www.inlantapartners.com ....................................15
NAMB/WEST .................................................... www.nambwest.com ........................IL2, IL8, 40 & 51
NAPMW .......................................................... www.napmw.org ..................................................31
Nationwide Equities Corp. ................................ www.nwecorp.com ..............................................11
NetMore America Wholesale.............................. www.netmoreamerica.com ..................................16
Oxley & Goldburn Insurance, Inc. ...................... www.oxley-goldburn.com ....................................24
PB Financial Group Corp. .................................. pbfinancialgrp.com ................................................7
ProClose.......................................................... www.proclose.com ................................................7
MARCH 2011
Wednesday-Thursday,
March 23-24
Policy Conference
Hyatt Regency Washington on Capitol Hill
400 New Jersey Avenue NW
Washington, D.C.
Quality Mortgage Services ................................ www.qcmortgage.com ....................................7 & 25
REMN (Real Estate Mortgage Network)................ www.remnwholesale.com ....................................45
Ridgewood Savings Bank .................................. www.ridgewoodbank.com ......................................8
Sierra Pacific Mortgage .................................... www.sierrapacificmortgage.com ............................23
StreetLinks National Appraisal Services .............. www.streetlinks.com/SCORe ....................................9
Terrace Mortgage Company .............................. www.terracemortgage.com ..................................43
United Northern Mortgage Bankers Ltd. ............ www.unitednorthern.jobs ............................ 33 & 47
USA Cares ........................................................ www.usacares.org ................................................24
Windvest Corporation ...................................... www.windvestcorp.com ........................................46
Sunday-Wednesday,
March 27-30
Mortgage Bankers Association’s
National Technology in Mortgage Banking
Conference & Expo
The Westin Diplomat Resort & Spa
3555 South Ocean Drive
Ft. Lauderdale, Fla.
Xetus Mortgage Corporation.............................. www.xetus.com ....................................................6
Sunday-Wednesday, March 27-30
Mortgage Bankers Association’s Legal
Issues/Regulatory Compliance Conference
Boca Raton Resort
501 El Camino Real • Boca Raton, Fla.
OCTOBER 2011
Sunday-Wednesday, October 9-12
98th Annual Convention & Expo
The Hyatt Regency
151 East Wacker Drive • Chicago, Ill.
MO
RTGAGE PRO
NMP
SSIONAL
Fraud Issues Conference
The Westin Diplomat Resort & Spa
3555 South Ocean Drive
Ft. Lauderdale, Fla.
Commercial/Multifamily Servicing &
Technology Conference
Chicago Marriott Downtown Magnificent Mile
540 North Michigan Avenue
Chicago, Ill.
FE
MAY 2011
NATIONAL
52
Mortgage Bankers Association’s Commercial
Real Estate Finance/Multifamily Housing
Convention & Expo 2011
Manchester Grand Hyatt San Diego
One Market Place
San Diego, Calif.
MAG
AZIN
E