september 2013 - National Mortgage Professional Magazine

Transcription

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NationalMortgageProfessional.com
n Florida Mortgage Professional Magazine n SEPTEMBER 2013
GSF is a wholesale lender dedicated
exclusively to USDA production.
FLORIDA EDITION
Florida Association of Mortgage Professionals
1292 Cedar Center Drive v Tallahassee, FL 32301
Phone #: (850) 942-6411 v Fax #: (850) 942-4654
Web site: www.famb.org v E-mail: [email protected]
2013-2014 FAMP OFFICERS
Valerie Saunders
David Kane Jr.
Paul Halter
Marie Martin
Douglas L. Turner
Carl Noriega
President
President-Elect
Vice President
Treasurer
Secretary
Immediate Past President
Phone #
(904) 992-0785
(239) 851-7671
(904) 928-0113, x107
(321) 749-6140
(800) 269-1028, x101
(954) 400-5641
E-mail
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
2013-2014 FAMP CHAPTER PRESIDENTS
Carol Martin
Cyndi Meyers
Debbie Cooley-Guy
Jody Barry
Jill Waller
Linda Knowlton
Trish Sublette
Marty Remillard
Broward Chapter
Central Chapter
Gulf Coast Chapter
Jacksonville Chapter
Northwest Chapter
Southwest Chapter
Space Coast Chapter
Suncoast Chapter
(954) 205-0022
(407) 920-5382
(727) 569-0556
(904) 730-5603
(850) 621-4776
(239) 790-3206
(321) 543-4517
(941) 223-9416
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
FAMP STAFF
Frank Cicione, CMC, CRMS Executive Director
Melissa Grosvenor
Chief Operations Officer
Brad Mitchell
Web Site and Technology
Administrator
Amber Greene
Membership Director
(850) 942-6411
(850) 942-6411
(850) 942-6411
-----------------(850) 942-6411
[email protected]
[email protected]
[email protected]
[email protected]
calendar of events
FAMP
SEPTEMBER 2013
Tuesday, September 17
FAMP Broward Chapter’s
Government Affairs Update and
Networking/Membership Night
Guest Speaker: Joseph Falk, CMC, CRMS
Fort Lauderdale Historical Center
231 SW 2nd Avenue
Fort Lauderdale, Fla.
6:00 p.m.-8:30 p.m.
$15 for FAMP Members/
$25 for Non-Members
For more information, call (954) 986-0808 or
visit www.browardfamb.com.
Wednesday, September 18
Eight-Hour SAFE Comprehensive 2013 Mortgage
Loan Originator Course #3575
Instructor: Valerie Saunders
Jacksonville Marriott
4670 Salisbury Road
Jacksonville, Fla.
8:00 a.m.-5:00 p.m.
$224 for Non-Members
Twitter.com/ntlmortgagepro
facebook.com/mortgageprofessional
• Daily updated mortgage industry news
• Industry blogs
• Write your own blog
• Find loan programs
• Discover local and national events
• Get access to video
OCTOBER 2013
Saturday, October 5
Instructor: Joe Falk, CMC, CRMS
Total Wine and More
15980 Pines Boulevard
Pembroke Pines, Fla.
9:30 a.m.–6:30 p.m.
Friday, October 11
FAMP Government Affairs Update & Luncheon
Guest Speaker: NAMB President Don
Frommeyer, NAMB Government Affairs
Committee Chair Richard Bettencourt & John
Hudson, vice president of regulatory affairs for
Premier Nationwide Lending
The Westin Tampa Bay
7627 West Courtney Campbell Causeway
Tampa, Fla.
10:00 a.m.-1:30 p.m.
Saturday, October 19
AmericInn Sarasota Hotel
5931 Fruitville Road
Sarasota, Fla.
8:00 a.m.-5:00 p.m.
Friday, October 25
Melbourne Area Association of Realtors
1450 Sarno Road
Melbourne, Fla.
8:30 a.m.-5:30 p.m.
Orlando Marriott Lake Mary
1501 International Parkway
Lake Mary, Fla.
8:30 a.m.-5:30 p.m.
For information on all FAMP events,
call (850) 942-6411 or visit
www.famb.org.
FL
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LinkedIn.com (search National
Mortgage Professional Magazine)
Saturday, September 21
AmericInn Sarasota Hotel
5931 Fruitville Road
Sarasota, Fla.
8:00 a.m.-5:00 p.m.
Wednesday, October 16
Total Wine and More
15980 Pines Boulevard
Pembroke Pines, Fla.
9:30 a.m.-6:30 p.m.
Friday, September 20
Kelly Greens Golf and Country Club
12300 Kelly Greens Boulevard
Fort Myers, Fla.
8:30 a.m.-5:30 p.m.
The Westin Tampa Bay
7627 West Courtney Campbell Causeway
Tampa, Fla.
8:00 a.m.-5:00 p.m.
Scenes From the
FAMP 2013
Annual Convention
July 31-August 3 at Rosen’s Shingle Creek in Orlando, Fla.
Dustin Bowersett,
Cindy J. Meyers
and Troy
Tiedemann from
Integrity Home
Loan of Central
Florida
Bob DellaPorta and Keith Miller from
Maverick Funding Corp. were on hand
to discuss their product offerings
David Burnham, Jackie Mamber, James Matarazzo, Vicki
Tomaini, Marcus Hancher and Lena Haoui from Rushmore
Loan Management Services LLC
Jarrod Markofsky from
Taylor Made Lending LLC
SEPTEMBER 2013 n Florida Mortgage Professional Magazine n
FL
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Charles White, Chris Bowers and Jim O’Leary of
Fifth-Third Mortgage
John Tedesco of Appraisal
Nation on the floor of Rosen’s
Shingle Creek in Orlando
Kristin Binkley and Brian Zdeblick proudly
represent BOFI Federal Bank
Kevin Johnson and Joni
Pilgrim from Nationwide
Appraisal Network
Michael Pearson, Dejana Veseli, Allen Beydoun, Neena
Kalasho and Eddie Bauer from United Wholesale
Mortgage (UWM)
Chad McDowell, Mark Tackett, Jodi Moran and Jose Perez
from Platinum Mortgage
Mark Boleky and Kyle McKinney from
Plaza Home Mortgage Inc.
Scenes From the
FAMP 2013
Annual Convention
July 31-August 3 at Rosen’s Shingle Creek in Orlando, Fla.
Christina Rodriguez and Brett
Parker from HomeBridge pause
for a photo
FAMB Gulf Coast Chapter member Gabe
Ayala (right) stops by the Lenders
Compliance Group booth for a chat
with LCG’s Alan J. Cicchetti
Philip Leitner, Bill Barkley and Michael Suchan
from First Guaranty Mortgage Corporation
Karen Ollis and Chris Munson
from RMPath
FL
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Gino Berchock, Marianne Kozak,
Christian Deane and Flavia Portal
from Pacific Union Financial
Reps from REMN Wholesale during the FAMP 2013
Annual Trade Show in Orlando
Julie Sakadales,
Martin Reinholz and
Gwen Creel from
Michigan Mutual Inc.
Reps from Premier
Nationwide Lending
gather for a photo
during the FAMP
Annual Convention in
Orlando
Christopher Edgehill from Elite Edge stops by
the Calyx Software booth to test out some Calyx
offerings with reps Jim Dymek and Tate Kesner
Reps from NYCB Mortgage Company smile for a photo
Barry Morofsky and
Sandra Underwood from
New Penn Financial LLC
FL
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FL
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FL
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FL
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FL
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FL
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FL
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FL
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FL
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table o
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N A T I O N A L
Lykken on
Leadership: Are You a
Peacekeeper or a
Peacemaker?
By David Lykken
S E P T E M B E R
28
Navigating the
Origination Obstacle
Course: Recruiting
Obstacles & More
By Robert Ottone
M O R T
2 0 1 3
l
V O
A SPECIAL LOOK AT
“SCHOOL IS BACK IN
SESSION”
Continuing Education Requirements:
More Than Compliance … a Path to Success
By Barbara Scalera ................................................................54
A Game of Clue: What is Considered “Required”
Training by the CFPB? By Ginger Bell ................................56
Better SAFE Than Sorry By Eric Weinstein ..........................60
Live Classes vs. Self-Paced Courses:
The Choice is Yours By Jayne Combs ................................61
34
NMP Mortgage
Professional of the
Month: Kelly Taylor,
SVP of StreetLinks
Lender Solutions
By David J. Coster
Design and Align Compliance Education By Alice Alvey ....62
Mortgage Data Standards Propelling the
Need for Education and Certification
By Heather Kerns & Matt Seu ..................................................64
FEATURES
Today’s Purchase Market: Change on the Horizon
By K. Justin Restaino ..............................................................8
The Elite Performer: Purchase Planning
By Andy W. Harris, CRMS ........................................................8
Does the Bell Toll for Independent Mortgage
Brokers? By Mike Lewis ......................................................10
Fannie Mae/Freddie Mac Announce Policy
on Qualified Mortgages By Melanie A. Feliciano Esq. ............16
40
Legends of Lending:
GSF Mortgage
Corporation
By David J. Coster
44
The MiniCorrespondent
Channel: Pros and
Cons
By Jonathan Foxx
& Michael G. Barone
ValueNation: Make Your CTO Your Ally
By David Rasmussen ............................................................18
A Closer Look at the USDA Rural Loan Pilot Program
By Rich Obermeier ................................................................26
V I S I T
Company
Web Site
O U R
A
Page
AllRegs.............................................................. www.allregs.com ..........................................................62
American Financial Resources Inc. ...................... www.afrwholesale.com ............................Inside Back Cover
Appraisal Nation, LLC ........................................ www.appraisal-nation.com ..............................................3
Brokers Compliance Group.................................. www.brokerscompliancegroup.com ....................................5
Calyx Software .................................................. www.calyxsoftware.com ................................................51
CBC National Bank ............................................ www.cbconnex.com ......................................................61
Data Facts ........................................................ www.datafacts.com ........................................................55
Document Systems, Inc./DocMagic ...................... www.docmagic.com ......................................................31
First Guaranty Mortgage Corp. ............................ www.fgmcwholesale.com ..............................................33
Florida Capital Bank Mortgage ............................ www.flcbmtg.com ..........................................................23
Global DMS........................................................ www.globaldms.com ......................................................11
GSF Mortgage Corp. ............................................ www.gsfsales.com ..........................................................7
Hometown Lenders ............................................ www.whotookmybacon.com ..........................................13
HomeBridge ...................................................... www.homebridgewholesale.com ....................................43
IAAMB (Iowa Association of Mortgage Brokers)...... www.iaamb.net ............................................................53
Loans4Less ........................................................ www.loans4less.com ......................................................57
Maverick Funding Corp....................................... www.maverickbranch.com ............................................27
Maximum Acceleration Coaching ........................ www.maccelcoach.com ..................................................45
MBA-NJ/NJAMB .................................................. www.mbanj.com ..........................................................49
f contents
T G A G E
O L U M E
P R O F E S S I O N A L
5
l
N U M B E R
9
For Managers Only: Europe Rises From Recession
By Dave Hershman ................................................................30
Sales & Marketing Tips for Today’s Mortgage
Professional: Cultivating the Fruits of Your Labor
By Fred Arnold ....................................................................32
An Uptick in MLO Licensing Activity By Phil Hall ..............36
Marketing Compliance Corner: Social Media
By Michael J. Wallace Esq. ......................................................42
Selecting the Right AMC: What Lenders Need
to Know By Vladimir Bien-Aime ............................................44
NMP’s Inside Look: TagQuest … An Interview
With Caleb Guillory, President ........................................46
Work-Life Balance: Find Your Model Match
By Eric Petersen ..................................................................48
Who Has Access to Your Borrower’s Data?
By Andrew Liput ..................................................................50
PRIMARQ: Re-Creating the American
Dream of Homeownership ............................................50
False Hope for Mortgage Bankers in Appeals
Court Win? By Kimberly Priest Johnson ..................................52
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A New Day for Reverse Mortgages? By Phil Hall ..............66
USA Cares Mortgage Heroes:
Angela Jett of Equity Missouri By Joann Muncey ..............74
COLUMNS
D V E R T I S E R S
Company
Web Site
Page
Menlo Park Funding .......................................... www.mpfunding.com ....................................................15
Mortgage Mapp, Inc. .......................................... www.mortgagemapp.com/MO ........................................47
NAPMW ............................................................ www.napmw.org ..........................................................69
New Penn Financial, LLC .................................... www.gonewpenn.com ....................................................30
PB Financial Group Corp..................................... www.pbfinancialgrp.com ..............................................64
Quality Mortgage Services .................................. www.qcmortgage.com ....................................................60
REMN (Real Estate Mortgage Network) ................ www.remnwholesale.com ..............................................17
Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................58
Rushmore Loan Management Services LLC............ www.rushmorehl.com ......................................................9
Secure Settlements Inc. ...................................... www.securesettlements.com ..........................................65
Simple Nexus .................................................... www.simplenexus.com ..................................................59
Streetlinks LLC .................................................. www.streetlinks.com ..............................Inside Front Cover
TagQuest .......................................................... www.tagquest.com ........................................................29
The Bond Exchange............................................ www.thebondexchange.com ..........................................56
Titan List & Mailing Services, Inc. ........................ www.titanlists.com ........................................................19
United Northern Mortgage Bankers, Ltd............... www.unitednorthern.com/branch ....................................1
United Northern Mortgage Bankers, Ltd............... www.unmbwholesale.com ..............................................76
United Wholesale Mortgage ................................ www.uwm.com ................................................Back Cover
Veros ................................................................ www.veros.com ............................................................54
NMP News Flash: September 2013 ..............................12
New to Market................................................................14
Heard on the Street ......................................................22
NMP Resource Registry ................................................70
NMP Calendar of Events ................................................75
Compliance and Marketing 2013 ..................................67
SEPTEMBER 2013
Volume 5 • Number 9
FROM THE
1220 Wantagh Avenue • Wantagh, NY 11793-2202
Phone: (516) 409-5555 • Fax: (516) 409-4600
Web site: NationalMortgageProfessional.com
Change for all the right reasons
To the successful mortgage professionals who reads our magazine on a regular basis, this issue represents an
obvious change. We have made several significant changes to our appearance and our presentation both in our
print and online formats. But the changes do not represent “plastic surgery” as part of a vain attempt to keep
our looks up to date. Quite the contrary, our changes are a natural evolution for this publication, as we seek to
enhance the power of our voice within the mortgage industry. Let me summarize the changes we are making,
beginning in this issue:
STAFF
Eric C. Peck
Editor-in-Chief
(516) 409-5555, ext. 312
[email protected]
Joel M. Berman
Publisher - CEO
(516) 409-5555, ext. 310
[email protected]
Joey Arendt
Art Director
(516) 409-5555, ext. 307
[email protected]
Beverly Bolnick
National Sales Manager
(516) 409-5555, ext. 316
[email protected]
Scott Koondel
Operations Manager
(516) 409-5555, ext. 324
[email protected]
Robert Peter Ottone
Senior Editor
(516) 409-5555, ext. 314
[email protected]
David J. Coster
Senior Editor
[email protected]
Jon Blake
Advertising Coordinator
(516) 409-5555, ext. 301
[email protected]
Phil Hall
Senior Editor
[email protected]
New look … The September 2013 edition of National Mortgage Professional Magazine comes with a new look—a crisp, clean,
re-designed front cover graphic accompanied by a 100 percent glossy magazine. We have adopted a new, brighter, higher contrast, more modern logo that clearly signals that our magazine remains committed to being on the cutting edge of mortgage
industry trade publications.
No more dirty fingers … For the past 20 years, our team has been delivering targeted industry insights to you in a newsprint format. This format allowed us to be fast and deliver to the highest number of industry stakeholders. However, we’ve been waiting
for the day when we can still deliver you a slick magazine, while keeping production time down … and now that day has come!
New tagline … We are making a subtle, yet meaningful change to our tagline which appears below our title. We are replacing,
“Your source for the latest on originations, settlement and servicing;” with “The source for top originators.” The reason behind
this change is simple. While we will continue to cover important developments as it relates to settlement and servicing, everything in the mortgage industry begins with origination. We intend to remain the preferred source of information for mortgage
originators and an advocate of mortgage originators. We will highlight excellence and best business practices, and provide a voice
for those who wish to be heard. Our re-focus on the future will be to support the loan originators whose contributions to the
mortgage profession allow for the success of those in settlement and servicing. We are proud to emblazon that in the new look
on the cover of the September 2013 edition, National Mortgage Professional Magazine—“The Source for Top Loan Originators.”
This is just the visual outgrowth of a re-focus for the benefit of our dedicated readership. As we move forward, we want to
increase the relevancy of our content to help you navigate daily through the myriad of product, technology, regulatory and legislative issues facing the mortgage professional. Our mission is simple and continues to be to deliver high-value content, deliver
that content sharply and to be your trusted source to help you make your decisions. Moving forward, look to our pages to include
frequent quotes and commentary on the impact of the stories we are reporting on.
The mortgage industry has changed quite a bit over the past few years, and, like any other industry, it will continue to change.
We will provide clear and concise content to give you a snapshot of this ever-changing industry in our print magazine, e-editions,
Web site, NMP Daily e-mail newsletter and NMP Ticker e-mails to keep you informed.
We’ve also conducted numerous focus groups over the past few months and the outcome of them has been a resounding
realization that National Mortgage Professional Magazine has been—and continues to be—the source and voice of loan originators in the mortgage banking and mortgage broker communities, whether they are primarily focused on retail, wholesale,
branch or mini-correspondent.
We thank our loyal subscribers and advertisers for your past support, and we pledge to continue to pursue change only for
all the right reasons—when it benefits you .
Until next month …
Brian Coleman
Business Development Coordinator
(516) 409-5555, ext. 311
[email protected]
ADVERTISING
To receive any information regarding advertising rates, deadlines and requirements, please contact
National Account Executive Beverly Koondel at (516) 409-5555, ext. 316 or e-mail [email protected].
ARTICLE SUBMISSIONS/PRESS RELEASES
To submit any material, including articles and press releases, please 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
To receive subscription information, please call (516) 409-5555, ext. 301; e-mail [email protected] or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the
attention of “Circulation” via fax to (516) 409-4600.
4
publisher’s desk
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 Association of Mortgage Brokers and its State Affiliates (NAMB), National Association of
Professional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or other
state mortgage trade associations.
Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activities and/or publications is available on a non-discriminatory basis and does not reflect the endorsement
of the 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.
Joel M. Berman, Publisher-CEO
NMP Media Corp. • [email protected]
National Mortgage Professional Magazine is published monthly by NMP Media Corp. • Copyright © 2013 NMP Media Corp.
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S
EDITORIAL CONTRIBUTORS
Featured Editorial Contributors
Fred Arnold, CMC
Andy W. Harris, CRMS
Jayne Combs
Andrew Liput
K. Justin Restaino
Dave Hershman
By Melanie A. Feliciano
Esq.
Joann Muncey
Matt Seu
David Lykken
Joy K. Gilpin
Rich Obermeier
Barbara Scalera
Heather Kerns
Robert Ottone
Michael J. Wallace Esq.
Jean LeBlanc
Eric Petersen
Eric Weinstein
Mike Lewis
David Rasmussen
Michael G. Barone
David J. Coster
Jonathan Foxx
Editorial Contributors
Alice Alvey
Donald J. Frommeyer,
CRMS
Ginger Bell
Phil Hall
Vladimir Bien-Aime’
5
NAMB—The Association of
Mortgage Professionals
National Association of
Professional Mortgage Women
2701 West 15th Street, Suite 536 l Plano, TX 75075
Phone: (972) 758-1151 l Fax: (530) 484-2906
Web site: www.namb.org
P.O. Box 451718 l Garland, TX 75042
Phone: (800) 827-3034 l Fax: (469) 524-5121
Web site: www.napmw.org
NAMB 2013-2014 Board of Directors
2013-2014 NAPMW National Board of
Directors and Administration
OFFICERS
Donald J. Frommeyer, CRMS (t/e 2014)—President
Amtrust Mortgage Funding Inc.
200 Medical Drive, Suite D l Carmel, IN 46032
Phone: (317) 575-4355 l Fax: (317) 575-4360
E-mail: [email protected]
John Councilman, CMC, CRMS (t/e 2014)—
President-Elect
AMC Mortgage Corporation
10136 Avalon Lake Circle l Fort Myers, FL 33913
Phone: (239) 267-2400 l E-mail: [email protected]
Rocke Andrews, CMC, CRMS (t/e 2014)—Vice President
Lending Arizona LLC
1996 North Kolb l Tucson, AZ 85715
Phone: (520) 886-7283 l Fax: (520) 731-3388
Kay A. Cleland, CMC, CRMS (t/e 2014)—Secretary
KC Mortgage LLC
200 South Wilcox Street, #224 l Castle Rock, CO 80104
Office: (720) 810-4917 l Cell: (720) 670-0124
Andy W. Harris, CRMS (t/e 2014)—Treasurer
Vantage Mortgage Group Inc
15962 SW Boones Ferry Road, Suite 100 l Lake Oswego, OR 97035
Direct: (503) 496-0431, ext. 302 l Cell: (503) 880-2427
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Jim Pair, CMC (t/e 2014)—Immediate Past President
Mortgage America Corpus Christi Inc.
22800 Bulverde Road, Apt. 1402 l San Antonio, TX 78261
DIRECTORS
President
Jill Kinsman
(206) 344-7827
[email protected]
President-Elect
Christine Pollard
(607) 226-1046
[email protected]
National Consumer
Reporting Association
701 East Irving Park Road, Suite 306 l Roselle, IL 60172
Phone: (630) 539-1525 l Fax: (630) 539-1526
Web site: www.ncrainc.org
2013 Board of Directors & Staff
Daphne Large
President
(901) 259-5105
[email protected]
Linda McCoy, CRMS (t/e 2016)
Mortgage Team 1 Inc.
6336 Piccadilly Square Drive l Mobile, AL 36609
Phone: (251) 650-0805 l Fax: (251) 650-0808
Maureen Devine
Vice President
(413) 736-4511
[email protected]
Dick Morin (t/e 2014)
Consumers First Mortgage
P.O. Box 918 l Kennebunk, ME 04043
Phone: (207) 985-2895 l Fax: (207) 636-8027
Valerie Saunders (t/e 2015)
RE Financial Services
13033 West Lindburgh Avenue l Tampa, FL 33626
Phone: (866) 992-0785 l Fax: (866) 992-1024
Rick Bettencourt, CRMS (t/e 2014)
Mortgage Network
300 Rosewood Drive l Danvers, MA 01923
Phone: (978) 777-7500 l Fax: (855) 447-4350
Olga Kucerak, CRMS (t/e 2016)
Crown Lending
328 West Mistletoe l San Antonio, TX 78212
Phone: (210) 828-3384 l Fax: (210) 828-3332
Secretary
Cynthia Nutter
(360) 449-6408
[email protected]
Vice President (Central Region)
Kelly Hendricks
Treasurer
(314) 398-6840
Jeanne Evans, CME
[email protected]
(918) 431-0155
[email protected]
Vice President (Eastern Region)
Kimberly Rozell, CME
Parliamentarian
(607) 229-5008
Dawn Adams, GML, CMI
[email protected]
(607) 737-2584
[email protected]
Vice President (Northwestern
Region)
Administrator
Ken Perry, CMI, CME
Hulene Works
(360) 936-3010
(800) 827-3034
[email protected]
[email protected]
Fred Kreger, CMC (t/e2016)
American Family Funding
28368 Constellation Road, Ste. 398 l Santa Clarita, CA 91350
John Stevens, CRMS (t/e 2014)
ENG Lending
11650 South State Street, Suite 350 l Draper, UT 84020
Phone: (801) 477-7111 l Fax: (866) 442-9937
Vice President (Western
Region)
Anna Mackovska
(323) 331-2222
[email protected]
Donald J. Unger
Ex-Officio
(303) 670-7993, ext. 222
[email protected]
Mike Brown
Treasurer
(800) 925-6691, ext. 4350
[email protected]
Nancy Fedich
Director–Chair
Legal Committee
(908) 813-8555, ext. 3010
[email protected]
William Bower
Director–Chair
Tenant Screening Committee
(800) 288-4757
[email protected]
Tom Conwell
Director–Liaison
Legislative Committee
(800) 445-4922, ext. 1010
[email protected]
Judy Ryan
Director–Chair
Strategic Alliance Partnership
Committee
(800) 929-3400, ext. 201
[email protected]
Renee Erickson
Director–Chair
New Membership Committee
(866) 932-2715
[email protected]
Sharon Bieszk
Director
(262) 542-1700
[email protected]
Mary Campbell
Director
(701) 239-9977
[email protected]
Terry Clemans
Executive Director
(630) 539-1525
[email protected]
Jan Gerber
Office Manager/Member
Services
(630) 539-1525
[email protected]
www.GSFSales.com
It’s All We Do!
7
Today’s Purchase Market:
Change on the Horizon
By K. Justin Restaino
It’s becoming more evident that change is coming to the
mortgage industry. The record low rates are coming to an
end, and lenders will soon see, if they aren’t already, an industry-wide shift away from a refinancing market to a purchase-driven market.
With these changes, a trend is emerging on the lender side of business.
High-quality loan officers are moving from large banking institutions to
smaller and livelier mortgage banks. Why the shift? These smaller banks
are better able to service their clients and referral partners.
With the current rise in mortgage rates, applications for refinancing
will see a big decrease. According to the Mortgage Bankers Association
(MBA), they predict that rates for the 30-year fixed loan will reach 4.4 percent by the end of this year. By the fourth quarter, the MBA predicts the
refinancing share will only account for 40 percent of home mortgage application volume. At the same time, they expect purchase originations to
increase this year by 16.8 percent and 20.5 percent next year.
As originations change, loan officers will need to adjust to these new
dynamics. Refinancing is very different from purchasing. It requires communication, trust and speed. Needs are demanded every day by clients,
and loan officers must be in an environment that provides the resources
to meet these needs in a timely manner.
Below are some tips to remember when writing the copy for your purchase direct mail marketing. If you cannot engage your reader, you won’t
see the return you are anticipating.
8
1. Keep it short and sweet. Long messaging discourages people from investing their time in your direct mail piece. If you keep your message
brief and to the point, your reader can quickly determine the importance of your message and choose to read further or take action
2. Use acronyms and short forms sparingly, if at all. Most industries, especially the mortgage industry, are filled with daily uses of acronyms
or short forms, such as Ginnie Mae, ARMS, MBS. Unless you know for
certain that your reader understands these terms in their abbreviated
form, it’s always best and safe to spell everything out or provide the
complete definition of the term.
3. Create a personal tone. Your direct mail piece may be sent out to hundreds of people at a time, but your message should be created as if
you are only writing to one person. Determine the best “voice” to fit
your audience. Is it formal? Friendly? Funny? Etc.
4. Cross your T’s and dot your I’s. It may seem like an obvious step, but
it’s critical to check your spelling and grammar in all content that is
sent out. Readers will be turned off if they feel you didn’t put the effort
into making your direct mail a worthwhile piece for their time. Having
multiple people review the content will help prevent these errors.
Overall, this shift for loan officers will have a positive effect on consumers. Officers will be better equipped to provide service and speed to
close these loans, which is critical to all parties involved.
K. Justin Restaino is vice president of Titan List & Mailing Services Inc. For
more than 13 years, he has led Titan’s Mortgage Division, helping lenders
of all capacities grow their businesses utilizing targeted direct mail. With a
specialized focus in refinance and purchase markets, Restaino has the insight
for proper data and mail application for success. He may be reached by
phone at (800) 544-8060, ext. 204 or e-mail [email protected].
THE
elite performer
Purchase Planning
By Andy W. Harris, CRMS
If you’ve been vacationing this summer, you may have noticed when
you returned to the office that rates have risen considerably. You might
have also noticed that applications have fallen for the 10th time in the
last 11 weeks and are down 64 percent since May of this year. So what
does all this mean for your business? Well, that completely depends on you.
During these peaks and valleys in our industry, it is always important to realize
that the numbers will always change and the overall media will reflect this. Layoffs
and mergers will happen and adaptation will occur. The most important thing you
can pay attention to is YOUR business and not others. While applications are down
and interest rates are up, your pipeline does not have to suffer over these national
numbers and averages, unless of course you feel that you are average.
If you have not noticed, licensed mortgage loan originator numbers are down
historically and home sales are up. You might also notice monthly data in your
area on how many homes have sold and the potential for you to capture more
market share. The business is out there, but you have to be confident that you are
great at what you do. Here are a few simple ways you can prepare and focus on
this purchase market:
l Don’t market or target refinances. Let’s face it, a few refinances may trickle in, but
we’re in a purchase market and your pipeline should reflect primarily all homebuyers. Take the refinances as they come, but don’t waste your time and effort trying to pluck the hairs off a bald man.
l Spread your positive reputation. Create strategies and unique ideas to capture
more market share and referral business. Build your online and offline presence
and focus on your brand and reputation through client promotion and testimonials. Document all professional sources of referrals and where more diversity
needs to be created and what sections need more focus for volume should they
be lacking.
l Never stop learning. Read every day. Listen every day. Never stop learning, thinking and creating. Be open-minded and work with others who motivate and inspire
you through positivity and support. A good idea can result in excitement, but the
action can produce a fortune.
l Only work with good people. Don’t waste your time chasing bad real estate agents
and only work with an agent you would refer. Build relationships and trust for
referrals and a positive outcome for your client. Avoid any joint ventures or unethical nonsense, and remember that you only work for the consumer’s interests. It’s
a good idea also to pull an agent’s production over the last 12 months by requesting it from your local title company. This will put how active they are into perspective and will help you better figure out just where to invest your time.
l As always, monitor your finances. Plan for the worst and expect the best. Always
strive to have liquid reserves and savings of at least six months’ living expenses at
all times to deal with any unforeseen volatility in volume. Remain as liquid as possible and pay cash for everything other than real estate for housing or investment
if applicable. Don’t allow debt to result in poor short-term career decisions.
Homebuyers are all around you … get out there and get focused!
SPONSORED EDITORIAL
Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based Vantage
Mortgage Group Inc. and 2010-2011 president of the Oregon Association of Mortgage
Professionals. He may be reached by phone at (877) 496-0431 or e-mail
[email protected] or visit AndyWHarris.com.
– Abraham Lincoln
9
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shado w.
and don’t
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WHAT’S
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AT’S
T TR
TRUE
TRUE
UE WITH TREES IS TR
UE IN THE
Does the
Bell Toll for
Independent
Mortgage
Brokers?
10
By Mike Lewis
To paraphrase John
Donne’s famous line,
“Don’t ask whether you
will be affected by the
ongoing changes in the mortgage market—you will be.” The recovering but
still nascent U.S. economy, the assault
upon former industry practices and the
uncertainty of the government’s future
role in residential housing will severely
challenge the capability of large wholesale correspondent lenders to adapt to
the new market conditions.
According to the Mortgage Bankers
Association’s (MBA) 2012 year-end forecast, overall mortgage volume is
expected to drop from $1.7 trillion to
$1.08 trillion in 2014. In addition, the
ratio of refinance to purchase mortgages will essentially flip-flop, as refis
decrease from 71 percent to less than
35 percent of total new mortgages in
2014. Since the bulk of refinancing
occurs in the Big Four (Wells Fargo,
Citibank, JPMorgan Chase, and Bank of
America), they will be hurt to a greater
degree by the product shift than their
smaller competitors. In fact, the lower
volume and the fundamental structural
change provide extraordinary opportunities for independent local and regional mortgage competitors to prosper.
Pressures on the Big Four
According to a 2012 study by Harvard
Business School professors Robin
Greenwood and David Sharfstein, the
growth of residential mortgages from
“…small, locally-owned businesses
are preferred almost universally
by consumers to large, national entities.”
34 percent of the gross domestic product (GDP) in 1980 to 79 percent of GDP
in 2007 was spurred by the tremendous
profits in the financial industry from
fees, as well as the growth of a “shadow
banking” system with loose or non-existent regulations.
The subsequent failure of the subprime mortgage market and resulting
loss of confidence in the larger financial
entities to self-regulate have had several results:
l A slow-recovering U.S. economy: In its
Feb. 5, 2013 report, the Congressional
Budget Office (CBO) projected slow
growth (1.4 percent) in GDP through
2013, strengthening to an average of
3.5% from 2014 and 2018, and falling
back to 2.25 percent from 2019 to
2023. Housing starts (914,000 last
month) remain considerably below
their peak in January 2006 (2.27 million), and per capita personal income
has been stagnant for almost a decade
($42,524 in 2006 versus $42,693 in
2012).
l The imposition of Consumer
Financial Protection Bureau (CFPB)
regulations: The Dodd-Frank Wall
Street Reform and Consumer
Protection Act (Dodd-Frank) created
the CFPB in 2011 and new qualified
mortgage (QM) and qualified residential mortgage (QRM) rules.
According
to
the
CoreLogic
MarketPulse February report, only
about one-quarter of purchase originations would meet the QM and
QRM requirements if not for a temporary exclusion (up to seven years)
of loans that otherwise meet GSE
and FHA underwriting requirements.
l Growing pressure to reduce federal
government guarantees: The Senate
has introduced the Jumpstart GSE
Reform Act, while the Financial
Services Committee of the U.S.
House of Representatives introduced
its version, the Protecting American
Taxpayers and Homeowners Act
(PATH Act). The MBA has also proposed its own version of reform.
While there is yet to be a consensus
on the role federal government will
play in housing finance, it is likely
that federal government guarantees
will be substantially reduced.
The Big Four, originating two-thirds
of mortgages nationally, have billions
of dollars in fixed costs for extensive
correspondent networks, thousands of
employees, and an elaborate, multitiered management system, as well as
continuing financial obligations related
to cleaning up old loans from the early
period of excess. In periods of high volume, these costs can be leveraged over
huge numbers of mortgages. But as
total production drops, those assets
become liabilities, reducing earnings
and provoking shareholder unrest.
These are very visible public companies with demanding shareholders who
scrutinize each quarter’s return. It is
unlikely that shareholders will have the
stomach to continue to feed an infrastructure built to serve a market that
may be a decade or more from returning to its former size. And though the
large national mortgage brokers and
banks are already engaged in programs
to rapidly reduce costs and cut staff to
minimize losses, it is also unlikely that
they will be able to downsize as quickly
as the market is contracting, thereby
providing an opportunity for fasterreacting, smaller competitors.
The opportunity
for independent
mortgage brokers
A local or regional mortgage broker is
ideally positioned to move into the void
left by the retrenching big boys if that
broker exploits his or her natural
advantages of speed and flexibility.
Moreover, the downturn in the industry
means that industry suppliers of
technology will be more willing
to negotiate prices for
heretofore unaffordable software programs to boost
efficiency, improve customer
service,
and
expand market
reach.
While larger
competitors are
laying off employees, closing
offices and slashing
marketing budgets
in efforts to satisfy
public shareholders, the
dinosaurs of the industry
are focusing on how to
roll back change to
return to the status
quo, even as they
struggle to adapt to
new rules and the
changing climate.
the elements of a value proposition to a
potential buyer. The brand conveys a
marketing message, literally and subliminally, to viewers, and should be
consistent in every detail and channel
where it appears. The name and logo of
your organization, the pictures and
copy of your advertising and marketing
materials, and the location of your
office—as well as the appearance,
demeanor, and attitude of your
employees—should be scrutinized to
ensure conformity with the image you
seek to present.
According to a May 2013 poll by the
Institute of Politics at Harvard, Wall
Street was considered less trustworthy
than almost every federal and state gov-
ernment, surpassing only the media.
Bankers consistently rate below average
in trustworthiness and likeability
among professions.
On the other hand, small, locallyowned businesses are preferred almost
universally by consumers to large,
national entities. Your message should
emphasize your local or regional
roots—a down-home, friendly neighborhood business—versus the remote,
cold, bureaucratic image of the national mortgage bankers.
tunity to grab significant market share
from bigger competitors is unprecedented—the attention of the behemoths focused on Washington and survival, the availability of revolutionary
technology at reasonable prices, and
the access to multiple marketing channels at low cost are unlikely to repeated
when the market stabilizes.
The future of the mortgage business
is being written today, and regional and
local mortgage brokers will be its
authors. Now is your time to act.
Final thoughts
Mike Lewis is a retired business executive
and personal finance columnist. He may
be reached by e-mail at [email protected].
The competitive environment of the
mortgage banking industry has been
turned on its head. The present oppor-
Institute a customerfocused strategy
Create a reliable brand
emphasizing a local or
regional presence
Despite the overuse of the term, the
importance of “branding” cannot be
overlooked. A successful brand strategy
communicates instantly and viscerally
l Elimination: Stop doing unnecessary tasks that add costs, but do not
add value to the customer.
l Automation: Much of the form-filling, filing, printing and copying tasks
accompanying a mortgage submittal,
approval, closing and funding has
been automated in recent years. Look
for and invest in affordable software
that eliminates mistakes, improves
communication, and cut costs.
l Upgrading: Prioritize, reorganize,
and combine tasks that cannot be
eliminated or automated. Upgrade
your personnel, selecting the best of
the thousands who will be released
by the big national firms. Invest in
training, and incentivize your staff
by spreading the wealth.
11
To capitalize on the opportunity at
hand, it is essential to understand your
value proposition—in other words,
why should a customer buy from you
versus your competitor? In most cases,
the rates and the mortgage terms you
offer are similar, if not identical, to
your competitor. As a consequence, you
must make the process more convenient, fast, and understandable, and easier for the customer to complete without having to charge a premium for
your enhanced value.
Breaking down the mortgage
process into its various elements—
understanding who is responsible, what
the desired outcome is, and how the
work is performed—will allow to you to
improve each element and the process
as a whole in the following ways:
EWSFLASH l SEPTEMBER 2013 l NMP NEWSFLASH l SEPTEMBER 2013 l NMP N
GSF Honored
With USDA Award
12
GSF Mortgage has been named a
“Platinum Million Dollar Lender” by the
United States Department of Agriculture
for the second consecutive year. This certification is awarded to organizations that
utilized over $5 million in Guaranteed
Rural Housing (GRH) Loan Funds for home
purchases in 2012.
According to the USDA, more than
$414 million in GRH funding was delivered to homeowners, which resulted in
over 3,388 home purchases.
GSF Mortgage utilized over $5 million
in GRH Loan Funds to make this possible,
which helped many rural residents
improve their quality of life and strengthen America’s rural economy.
CFPB Releases Second
Update to Mortgage
Regulation Exam
Procedures
The Consumer
Financial Protection Bureau
(CFPB) has released a second
update to its exam procedures in connection with the new mortgage regulations
issued in January 2013. The interim exam
procedures offer valuable guidance to
financial institutions and mortgage companies on what the CFPB will be looking
for as the rules become effective.
“We are committed to transparency
around our examination process,” said
CFPB Director Richard Cordray. “So we
have worked hard to provide industry
with advance notice of what we will be
expecting. That, in turn, will improve
compliance and benefit consumers.”
The CFPB issued several new regulations reforming the mortgage market in
January 2013. Many of the new rules were
directed by the 2010 Dodd-Frank Wall
Street Reform and Consumer Protection
Act. The rules cover the various stages of a
consumer’s mortgage experience, from
shopping for a loan to paying it off. Most
of the CFPB’s new rules go into effect in
January 2014.
These updates cover the Ability-toRepay/Qualified Mortgages, high-cost
mortgages, and appraisals for higherpriced mortgage loans, as well as new
amendments related to the escrows rule.
The updates also cover recent changes to
credit card rules. With this release, the
exam procedures now cover the Bureau’s
mortgage origination rules issued through
May 29, 2013, and mortgage servicing rules
issued through July 10, 2013.
The CFPB is sharing with the industry
what it will be looking for in its examinations under the new rules by updating the
applicable sections of the exam procedure
manuals for the Truth in Lending Act (TILA)
and the Real Estate Settlement Procedures
Act (RESPA). These documents are intended
for use by CFPB examiners in examining the
mortgage companies and other financial
institutions subject to the new regulations.
Q2 Commercial/Multifamily
Volume Up 36 Percent
Over Q1
Commercial and
multifamily
mortgage origination volume
during the second quarter of 2013 were seven percent
higher than during the second quarter of
2012 and 36 percent higher than during
the first quarter of 2013, according to the
Mortgage Bankers Association’s (MBA)
Quarterly Survey of Commercial/
Multifamily Mortgage Bankers Originations.
“Commercial and multifamily mortgage
lending and borrowing continued to grow
during the second quarter,” said Jamie
Woodwell, MBA’s vice president of commercial real estate research. “The apartment market continues to be the belle of
the ball, with multifamily mortgage originations running 31 percent ahead of last
year’s first half total. And after a slow start
to the year, lending by life insurance companies surged in the second quarter to
record the highest quarterly volume on
record for that sector.”
The seven percent overall increase in
commercial/multifamily lending volume,
when compared to the second quarter of
2012, was driven by the increase in originations for multifamily properties. The
increase included a 31 percent increase in
the dollar volume of loans for multifamily properties, a three percent increase for
hotel properties, a 14 percent decrease
for retail properties, a 36 percent
decrease for health care properties, and
office and industrial properties remained
unchanged when compared to the second quarter of 2012.
Among investor types, the dollar volume of loans originated for life insurance
companies increased by 16 percent from
last year’s second quarter. There was a 13
percent increase for commercial bank
portfolio loans, an eight percent increase
for government-sponsored enterprise
loans, and a 14 percent decrease in dollar
volume of loans originated for conduits
for CMBS.
Second quarter 2013 commercial and
multifamily mortgage originations were
36 percent higher than originations in the
first quarter. Compared to the first quarter, second quarter 2013 originations for
hotel properties saw an 89 percent
increase. There was a 75 percent increase
for office properties, a 48 percent increase
for retail properties, a 44 percent increase
for industrial properties, a 22 percent
increase for multifamily properties, and
health care properties were unchanged
from first to second quarter 2013.
Among investor types, between the
first and second quarters of 2013, loans
for life insurance companies saw an
increase in dollar volume of 100 percent,
loans for conduits for CMBS saw an
increase in loan volume of 27 percent,
originations for commercial bank portfolios increased 14 percent and loans for
GSEs increased by two percent.
Year-to-date (through the second quarter) 2013 commercial and multifamily
mortgage originations were eight percent
higher than originations during the same
time period of 2012. Compared to 2012,
year-to-date originations for multifamily
properties saw a 31 percent increase.
There was a 13 percent increase for hotel
properties, a one percent increase for
industrial properties, a two percent
decrease for office properties, a 19 percent
decrease for retail properties and a 27 percent decrease for health care properties.
Among investor types, year-to-date
(through the second quarter) 2013 versus
the same time period in 2012, loans for
conduits for CMBS saw an increase in loan
volume of 22 percent, loans for GSEs saw
an increase in loan volume of 20 percent,
originations for commercial bank portfolios increased 11 percent and loans for life
insurance companies were even year-todate 2013 versus year-to-date 2012.
Despite Sluggish Economy,
Construction Starts Forecast
to Grow Six Percent
New construction
starts are forecast
to rise six percent
this year to $506
billion, according
to the Midyear Update to the 2013
Construction Outlook from McGraw Hill
Construction, a division of McGraw Hill
Financial. This is the same rate of increase
for total construction starts that was predicted last October, and follows the eight
percent gain that took place in 2012.
“The recovery for construction continues
to unfold in a selective manner, proceeding
against the backdrop of the sluggish U.S.
economy,” said Robert A. Murray, vice president of economic affairs for McGraw Hill
Construction. “While the degree of uncertainty affecting the economy seems to have
eased a bit from last year, tight government
financing continues to exert a dampening
effect on both the economy and the construction industry. On the positive side for
construction, the demand for housing
remains strong, market fundamentals for
commercial building are strengthening,
and lending standards for commercial real
estate loans continue to ease gradually. On
balance, the recovery for construction is
making progress, but at a single-digit pace
given the mix of pluses and minuses by
major sector.”
Single family housing will advance 28
percent in dollars, corresponding to a 24
percent increase in the number of dwelling
units to 640,000 (McGraw Hill Construction
continued on page 16
13
Carrington Broadens Its
Government Loan Options
Via New USDA Loan
Offerings
14
Carrington Mortgage Services LLC
announced that
it has broadened its portfolio of government loan programs by offering USDA
loans through its retail and wholesale
lending operations. Requiring low—and
in some cases no downpayment or cash
reserve, Carrington’s USDA loan program
complements the company’s existing
range of government products designed
to increase the borrowing potential of real
estate consumers, offering them, the
agents and the brokers who serve them a
competitive advantage in today’s real
estate market.
With a USDA loan through Carrington,
eligible borrowers can obtain up to 100
percent financing on a home’s appraised
value. Purchase, Rate/Term Refinance
and Streamline Refinance options are
available to borrowers with a debt-toincome ratio of 29/41 and a minimum
FICO score of 580 (other restrictions may
apply).
“Carrington is deeply committed to
providing a wide range of products that
meet the individual needs of borrowers –
and that give the real estate professionals
and brokers who serve them the confidence to close transactions,” said Ray
Brousseau, executive vice president of
Carrington Mortgage Services LLC’s
Mortgage Lending Division. “By adding
USDA loans to our government-based
portfolio, we’re providing consumers with
an additional lending option that can
make purchasing or refinancing a property more accessible.”
Advantage Systems
Releases Web-Based
Version of Workflow
Management Product
Advantage Systems
has announced that
it has released a
Web-based version
of its ApprovalSoft
imaging, workflow and approval management software. Users can access the application from desktops, tablets and smartphones and it automatically adjusts to fit
the screen of any device for consistent
viewing.
ApprovalSoft enables users to take a
picture of supporting financial documents, such as receipts for meals, using
the camera from a smartphone or
tablet and eliminates the time and cost
of sending documents to corporate
offices by regular mail or e-mail. Users
can access ApprovalSoft from any location with an Internet connection.
ApprovalSoft requires no configuration
on the user’s device, just launch the app
and log in. The technology makes the
process of recording accounting transactions as easy as possible. In addition to
handling vendor invoices, ApprovalSoft
was designed to handle all accounting
transactions, including journal entries.
“Our clients are being audited more
now than ever,” said Brian Lynch, president of Advantage Systems. ”They need an
efficient way to manage the approval
process in a system that allows them to
demonstrate that they have control over
their accounting transactions.”
NOVO Appraisal
Management Releases
Tool to Streamline
Appraisal Process
NOVO Appraisal Management has unveiled
a new proprietary
Automated Appraisal
Underwriting (AAU) tool that can significantly cut the time needed to review
appraisals. The AAU makes it possible to
identify problems and deficiencies in the
processing of an appraisal on the front end
where they can be addressed and cleared
promptly. NOVO’s Automated Appraisal
Underwriting (AAU) uses algorithms, an
automated rules-based engine, and
underwriting logic to highlight areas that
may be of concern to a lender. The underwriter simply has to focus on problem
areas rather than having to review the
entire appraisal. This provides a first-level
comprehensive review of the appraisal
allowing the underwriter to have plenty of
time to clear all issues prior to funding.
The release of the new AAU tool is timely given the lender’s need to gain efficiency while still limiting their exposure to risk.
Tom Hutchens, president of NOVO, said,
“The AAU tool simply makes everyone
involved in the appraisal process more
efficient and the lender more confident
in their collateral decisions. We expect
this tool to dramatically increase the ability of our clients to close loans.”
Equifax Announces
New AVM Offering
Equifax
has
announced the
availability of
its Collateral Value Connector, an automated valuation model (AVM) cascade
that rank orders the industry’s leading
AVMs by accuracy to provide lenders a
precise collateral valuation that can be
depended on. In an effort to provide the
lending community with a truly transparent and documented approach to AVM
testing and facilitate compliance with
federal regulatory guidelines, Equifax has
partnered with Southwest Financial
Services Ltd. to independently test and
validate the AVMs that are available via
the Collateral Value Connector.
As a national provider of appraisal
management, title, flood zone determination and valuation services, Southwest
Financial Services is qualified to independently test and make sound recommendations as it relates to which AVM(s) a
lender should consider using given the
geographic location of an asset. Through
exhaustive testing that takes place on a
weekly basis, Southwest Financial Services
is able to measure the performance of the
models that are available via the
Collateral Value Connector and rank
them at the county-level according to
their respective accuracy rates to ensure
delivery of the most accurate collateral
valuation possible. In previous years,
loose AVM testing standards led to the use
of inaccurate and unsupported collateral
valuations, which in turn increased fraud,
repurchase, and reputational risk for
lenders. However, today’s strict
Interagency Appraisal and Evaluation
Guidelines mandate comprehensive testing policies for lenders to justify the use of
an AVM according to how it has performed in a given subject property’s geographic area.
“With today’s low rates and increasing
home values in the vast majority of areas
in the US, homeowners are returning to
leverage the equity in their home as a flexible source of credit,” said Craig Crabtree,
senior vice president Equifax Mortgage
Services. “For lenders, the need for valuation accuracy and transparency is more
important than ever. Through Southwest
Financial Services’ independent and comprehensive testing criteria, the Equifax
Collateral Value Connector exceeds the
standard automated valuation model to
deliver an unparalleled level of accuracy,
coverage and documentation that lenders
can rely on to effectively manage their collateral risk and meet regulatory compliance demands.”
CoreLogic Launches
PoolTrack Service for BPOs
and New Mobile MLS App
CoreLogic has
announced that
it is adding a
new online pool tracking service to all of
its data validated broker price opinions
(BPOs), providing up-to-the-minute status,
broader access and transparency for capital markets and servicing clients.
Clients will now be able to view the status of all of their BPO orders as well as digital versions of completed BPOs and billing
information via a secure, pool-driven Web
site known as PoolTrack. At a client’s discretion, buyers, sellers and due diligence
providers may also be granted limited
access to BPOs that are offered as part of
pool or portfolio transactions.
“We are committed to enhancing both
the quality of our data validated valuation
products and how they are delivered,
shared and consumed,” said Dave
Williams, vice president of broker price
opinion services for CoreLogic. “PoolTrack
utilizes technology to help users monitor
the progress of their orders at a trade or
pool-level and potentially give investors
and diligence providers faster, self-administered access to this information.”
CoreLogic has also announced the
launch of GoMLS 2.0, a mobile productivity application for multiple listing service
(MLS) providers. Compatible with any MLS
system, GoMLS gives real estate professionals access to in-depth listing and property
data from their Apple iPhone, iPad and
Google Android devices, plus the ability to
extend mobile search functionality to their
home buying and selling clients. GoMLS
2.0 introduces a new feature called Home
Assist that allows real estate agents and
consumers to collaborate remotely on the
home search process using their mobile
devices.
Using GoMLS with Home Assist, real
estate agents can chat and share listings
with clients in a running thread, making it
easy to see their favorite homes, notes and
new search activity. Agents can use e-mail,
text messaging, Facebook or Twitter to
invite their clients to download an agentbranded consumer version of the app that
lets them stay in touch while searching for
properties. GoMLS’ deep MLS integration
provides agents with access to real-time
MLS data, agent-only listing information,
MLS saved searches and contacts, listing
edit capabilities and optional Realist property information.
have been answered in this major release.
Corporate marketing administrators and
loan officers are now able to create fullybranded and compliant automated marketing campaigns for each element of the
retail mortgage sales process.”
CustomerManager 5.0 builds on the
existing solution with multiple enhancements, including: New user interface for
easier navigation and system-wide efficiencies; site ‘skinning’ with company logo for
seamless corporate branding; feed delivery
and list upload support for corporate-wide
lead distribution (or placement within individual loan officer’s prospect database);
custom Lead Status definition (per lead
type) and ability to attach phone scripts
and documentation for specific lead
sources; easy lead disposition from home
page and contact records; integrated Lead
Lifecycle & Calendar Functionality summarizing loan officers’ opportunities, tasks
and responsibilities; expanded contact
record fields for prospects, customers, and
partners; lead group creation and automation for inbound leads with a variety of
assignment options; and automated marketing programs within overall lead management process (consisting of e-mail and
direct mail communications).
Leads can be manually entered into the
system by a corporate administrator and
distributed across the enterprise – or fed
into the system for specific groups, users or
via round-robin assignment. Automated
marketing programs can also be deployed
based on lead type or the stage of the leads
in the sales process. When leads are
entered into the system, entries are automatically created in each loan officer’s calendar to remind them of specific obligations and deadlines.
New Churchill Mortgage
Offering Promises
Expedited Closing Times
Churchill Mortgage has announced its
“Purchase
Guaranteed
Close” program, promising qualified
borrowers a timely closing of loans.
According to Ellie Mae’s latest
Origination Insight Report, the avercontinued on page 74
National MI Integrates
With LoanServ
Get ON BOARD With The
BEST MORTGAGE LENDER
In the Nation!
15
For Branch opportunities call 877.896.8496
LoyaltyExpress has released the fifth generation of its CRM platform–
CustomerManager. CustomerManager, a
software-as-a-service (SaaS) platform. The
version 5.0 release includes a robust user
interface enhancement and extensive lead
management capabilities to fully support
the ‘pre-to post-closing’ mortgage sales
cycle.
“CustomerManager
continuously
exceeds client expectations based on
world-class functionality and stability,”
said Jeff Doyle, chief executive officer,
LoyaltyExpress. “Ever-rigorous demands
for lead management with extensive direct
mail and email marketing integration
www.mpfunding.com
Real Estate Mortgage Network Inc, DBA Menlo Park Funding.
499 Thornall Street 2nd Floor, Edison, NJ 08837. NMLS# 6521
LoyaltyExpress Releases
Latest CRM Platform
National MI
has successfully completed systems integration with LoanServ
from Fiserv, a technology platform that
performs mortgage servicing functions,
including insurance coverage activation,
billing transactions and certificate administration for lenders, banks, aggregators
and credit unions.
The integration with LoanServ streamlines data transfers and is expected to
increase efficiencies for National MI’s
lender customers that use the Fiserv solution. “Our integration with LoanServ from
Fiserv will enable National MI to support
many of our customers’ servicing needs by
making the process more convenient and
straight-forward,” said Pete Pannes, chief
sales officer at National MI.
LoanServ automates all loan servicing
processes, including integrated default
management and collections, cashiering,
escrow and investor accounting for both
closed-end and revolving loans. With
LoanServ, data transactions are available
online in real-time to ease compliance risk
and eliminate the limitations associated
with an end-of-day batch processing cycle.
National MI began writing mortgage
insurance in April of this year. Both Fannie
Mae and Freddie Mac approved National
MI as a qualified mortgage insurer in
January of 2013.
Fannie Mae/Freddie Mac
Announce Policy on
Qualified Mortgages
By Melanie A. Feliciano Esq.
On May 6, 2013, Fannie Mae and Freddie Mac (the GSEs)
each announced their policies with respect to the effect
of the Ability-to-Repay/Qualified Mortgage Rule on mortgages that are eligible for sale to each one of the GSEs (see
Fannie Mae Lender Letter LL-2013-05; Freddie Mac Industry Letter,
dated May 6, 2013).
Both GSEs indicated in their respective announcements that their future purchase of loans would be limited to loans that are:
1. Qualified mortgages under the Ability-to-Repay Rule (Rule), including
those meeting the special or temporary qualified mortgage requirements under the Rule; or
2. Exempt from the ability-to-repay requirements, such as investor
transactions.
Accordingly, effective for mortgages subject to the ability-to-repay requirements under the Rule with application dates on or after Jan. 10,
2014, the GSEs will not purchase loans:
l That are not fully amortizing (e.g., no negative amortization or interest-only loans);
l With terms in excess of 30 years (e.g., no 40-year terms); or
l With points and fees in excess of three percent of the total loan amount
or such other limits for low balance loans, as set forth in the Rule.
16
On Aug. 20, 2013, pursuant to Fannie Mae Selling Guide Announcement
SEL-2013-06 and Freddie Mac Bulletin 2013-16, the GSEs announced their
additional policies and requirements based on the Rule, including those
relating to, among other things:
l Retiring mortgages with original maturities in excess of 30 years;
l Retiring mortgages with prepayment penalties;
l Introducing new points and fees thresholds of three percent for those
mortgages covered by the Rule;
l Updating requirements for Higher-Priced Mortgage Loans (HPMLs) for
the following mortgages:
n ARMs with initial periods of seven or 10 years
n Fannie Mae Refi Plus loans and Freddie Mac Relief Refinance Mortgages
These policies and requirements are effective for mortgage loans with
application dates on or after Jan. 10, 2014 (see Fannie Mae Lender Letter
LL-2013-06; Freddie Mac Industry Letter, dated July 2, 2013).
Please refer to the above-referenced Fannie Mae and Freddie Mac’s Bulletins and Letters for specific details.
Melanie A. Feliciano Esq. is DocMagic Inc.’s chief legal officer and currently
serves as editor-in-chief of DocMagic’s electronic compliance newsletter, The
Compliance Wizard. She received her JD from the Georgetown University Law
Center, and is licensed in California and Texas. She may be reached by phone
at (800) 649-1362 or e-mail [email protected].
SPONSORED EDITORIAL
nmp newsflash
continued from page 12
Dodge basis). The inventory of new homes
for sale is currently very low, which should
spur more construction, and home prices
are heading upward. The recent increase
in mortgage rates has raised concern, but
rates remain near historic lows and have
not significantly affected affordability for
most potential homebuyers.
Multifamily housing will climb 23 percent in dollars and 20 percent in units,
helped by the gains reported for occupancies and rents over the past year. Major
metropolitan areas such as New York continue to see groundbreaking for large
apartment projects, along with the reemergence of large condominium projects.
Commercial building will grow 15 percent, after the 11 percent increase reported
for 2012, although this year’s level of activity in dollar terms will still be 39 percent less
than what was reported during the 2007
peak year. The pace of store construction is
picking up, joining earlier gains registered
by warehouses and hotels. The increase for
office construction will remain relatively
subdued in 2013, as more privately
financed office projects are countered by
fewer government office buildings.
exclusively from independent mortgage
bankers. Overall production among independent mortgage bankers increased 11
percent from the first to the second quarter
of 2013. Among this quarter’s findings are:
l Profitability rose among independent
mortgage bankers. Net income margins
increased from the first to the second
quarter of 2013.
l Net worth for independent mortgage
bankers continues to climb, and
increased roughly 20 percent during the
second quarter of 2013. This is a continuing trend with capital increasing
approximately 34 percent from the year
ending Dec. 31, 2012.
l Commissions have been on the decline
since their four-month high in the
fourth quarter of 2012, when they
reached approximately 82 basis
points. They averaged roughly 78 basis
points in the second quarter of 2013,
with four-month average commissions
at approximately 80 basis points of
total production.
“Independent mortgage bankers face
different business challenges than the big
banks do, particularly when it comes to
profitability and fiscal spending,” said Ken
FHFA Seeking Public
Richey, managing partner of Richey May.
“There are a lot of otherwise healthy comInput on GSEs
The Federal Housing panies that are suffering undetected losses
Finance Agency (FHFA) and missed revenue opportunities.”
is seeking public input
on strategies for reduc- Mortgage Fraud Declines
ing Fannie Mae and 25 Percent Year-Over-Year
Freddie Mac’s presence
The
Financial
in the multifamily housing finance market
Crimes Enforcein 2014. In keeping with the goal of conment Network
tracting the market presence of Fannie Mae
(FinCEN) has reand Freddie Mac while simplifying and
leased an analysis
shrinking their operations, FHFA’s 2013 of Mortgage Fraud SAR Filings in calendar
Conservatorship Scorecard included reduc- year 2012. FinCEN’s data on suspected
ing their volume of new multifamily busi- mortgage fraud shows that reports
ness by 10 percent relative to 2012. FHFA declined 25 percent in 2012 (from 92,561
expects this reduction to be achieved this to 69,277) as compared to the previous
year through a combination of increased year. The past three years of suspected
pricing, more limited product offerings and mortgage fraud suspicious activity reports
stronger underwriting standards.
(SARs), if counted by the date they were
FHFA is now evaluating alternatives for received by FinCEN, accounted for approxireducing Fannie Mae and Freddie Mac’s mately 46 percent of the past decade’s
multifamily businesses in 2014 and is seek- mortgage fraud SARs. However, suspicious
ing public input on the potential market activity is often only recognized and reportimpact of various strategies. These include: ed years after loan origination, after a
Restrictions on available loan terms; simpli- review of origination documents is promptfication and standardization of loan prod- ed by a loan default, repurchase demand,
ucts; limits on property financing; limits on or other factors.
business activities; and, other options that
As a result, many mortgage fraud SARs
FHFA should consider to contract the are filed much later than the date that the
Enterprises’ multifamily businesses.
suspicious activity actually began. Thus in
2012, 57 percent of SARs received reported
Independent Mortgage
mortgage loan fraud (MLF) activities that
started more than five years before the SAR
Banker Production Rises
was filed. The bulk of FinCEN’s MLF SARs,
11 Percent Quarterly
Richey May & Co. has regardless of filing date, reference suspireleased its 2013 sec- cious activity that filers believe began in
ond quarter trend calendar years 2006 and 2007. The followreport for independ- ing chart depicts the number of annual
ent mortgage bankers. mortgage fraud SAR filings based on the
The quarterly bench- year FinCEN received the SAR, versus the
marking survey was created using Richey year that the SAR filer believed the suspiMay Select, an analytical technology providing benchmarking information derived
17
Make Your CTO Your Ally
By David Rasmussen
18
Whether your company staffs a chief risk officer, chief appraiser or director of valuations, there's an office where the
proverbial “buck” stops on collateral valuation issues. In
today’s world, where valuation regulations and expectations
have been redefined, we can point to numerous situations in which
change has needed to occur quickly and has required technology to get
there. Enter the CTO.
We’ve grown accustomed to the days when IT’s role in valuations was
to ensure the person(s) responsible for appraisal ordering had a functioning e-mail account, or to provide the underwriting team with functioning
computers and access to a photocopy machine. How times have changed.
Valuations can no longer be independent of real, CTO-supported technology. Appraisals are now almost exclusively transmitted via XML and
when they are not, PDF extraction technology must be employed. Automated valuation models (AVMs) are ordered through software-as-a-service
(SaaS) solutions or XML feeds; and all through the pipeline, your LOS, AMCs
and document retention services must stay connected, all while delivering
the required data to Fannie Mae and Freddie Mac through Uniform Collateral Data Portal (UCDP) in a Uniform Appraisal Dataset (UAD)-compliant
fashion. Consider how many of those terms in the last sentence even existed 10, five or even two years ago. Yes, the world is changing, rapidly,
and the greatest ally a valuations expert can have is the person who can
open the technological gateway to a swiftly flowing mortgage pipeline.
In the world of valuations, we speak in terms of USPAP, AVMs and the
ASB, while our counterparts in IT are caught up in DRPs, BRDs and PIIs.
So what can you, the valuations stakeholder, deliver to the CTO to speak
his/her language and get your integration project moving?
We counsel our clients to come to an early understanding on the shortand long-term goals for new technology. Documenting these needs will
be the first step in delivering on your CTO’s first request: An SOW, or “scope
of work” document. Sometimes, these needs are as black and white as
the regulations themselves. Other times, they may be part of a valuations
“wish list,” offering more qualitative benefits to the valuations team. Either way, identifying the requirements so IT can create a road map will
put your IT relationship and overall project on stronger footing.
Secondly, initiate an early introduction to your vendor’s integrations
team. Ideally, this introduction should instill confidence in the vendor
and an understanding of what lies ahead. When this is not the case, understanding concerns upfront and making necessary adjustments will save
considerable effort down the road.
One final word of caution: Don’t be fooled into thinking cloud technology will get you around talking to your IT team. True, cloud technology
has alleviated considerable burden for in-house technology teams, but
like all things valuation-related, outsourced services do not equate to outsourced responsibility. Bring your technology team in early to validate the
security and reliability surrounding the application and feel confident
your data is safeguarded.
David Rasmussen is senior vice president of operations at Veros Real Estate
Solutions. For more information, call (714) 415-6300 or visit Veros.com.
nmp newsflash
cious activity actually began (which was
usually at loan origination). It shows that
there was an extraordinary concentration of suspicious mortgage origination
activity beginning in 2006 and 2007, the
years immediately preceding the financial crisis of 2008.
TransUnion Study Links
Minimum Credit Card
Payments and Mortgage
Delinquencies
A new TransUnion
study found that
consumers with
the ability to pay
larger amounts
than the minimum payment due on their credit cards
had significantly lower delinquency rates
on not only their credit cards, but also
their auto loans and mortgages.
Consumers who made the minimum
payment, or close to it, generally had
higher delinquency rates.
“TransUnion’s study has confirmed
the conventional wisdom that transactors—those consumers who pay off their
entire balance each month—are better
risks than revolvers, i.e. consumers who
only pay a portion of their balance, and
moreover has quantified just how big an
increase in risk revolvers represent,” said
Ezra Becker, co-author of the study and
vice president of research and consulting
in TransUnion’s financial services business unit. “Just as importantly, the study
revealed that not all revolvers are equal:
those who pay more than the minimum
on their credit cards, even if they don’t
pay off the full balance, present less risk
across product types.”
The TransUnion study found that, of
the consumers who make payments on
their credit cards, each month about four
in 10 will pay off their entire credit card
balance. Six in 10 of those making payments on their credit cards will only pay
part of their remaining balance, and of
those six consumers two will pay off only
the minimum owed.
“This study was important because it
allowed us to quantify the extent to
which higher credit card payments lead
to improved loan performance—and
not just on credit cards, but also on mortgages and auto loans,” Becker said. “Our
findings provide lenders another tool
with which to evaluate consumer risk
that is not generally captured by traditional credit scores.”
Fannie Mae Recognizes
Top Servicers
Fannie Mae has
announced
Servicer Total
Achievement and Rewards (STAR)
Program results for the first half of 2013.
STAR was created to establish servicing
standards and recognize Fannie Mae servicers on their overall performance, customer service and foreclosure prevention
SPONSORED EDITORIAL
efforts. The program measures servicers
across key operational and performance
areas relative to their peers, and acknowledges their achievement through STAR
designations. For the first time, the midyear results also provide increased insight
into the key metrics used to measure servicer performance and foreclosure prevention efforts.
“Our mortgage servicers’ efforts are critical to keeping people in their homes, preventing foreclosures and stabilizing communities,” said Leslie Peeler, senior vice
president of Fannie Mae’s National
Servicing Organization. “With our expanded 2013 mid-year assessment, we continue
to recognize servicers that are on track to
meet overall performance scorecard goals
while also recognizing more servicers that
are top performers in specific operational
areas. We are working hard to share more
information regarding our STAR assessment process so the industry can more
easily identify and adopt best practices for
the benefit of homeowners.”
For overall performance, the following
servicers produced results on the STAR
Scorecard at or above median levels relative to their peers for the first half of 2013:
l Peer Group One: Green Tree Servicing
LLC, Nationstar Mortgage, Ocwen
Financial Corporation, PHH Mortgage
Corporation, PNC Financial Services
Group Inc., Seterus Inc., and Wells Fargo
Bank NA
l Peer Group Two: Fifth Third Bank and
Regions Bank
l Peer Group Three: Capital One NA,
Colonial Savings FA, M&T Bank, Navy
Federal Credit Union, Sovereign Bank,
and Third Federal Savings and Loan
In order for a servicer to be successful in
the Fannie Mae STAR Program, they must
be effective in these core functions. The
STAR program recognized the following
servicers for demonstrating leading performance at the top of each peer group for
these key metrics:
l 90+Days Delinquent to Better: Seterus
Inc., Regions Bank, Branch Banking &
Trust Company
l Retention Efficiency: Seterus Inc.,
OneWest Bank FSB and Colonial Savings
FA
l Liquidation Efficiency: GreenTree
Servicing LLC, Fifth Third Bank and
Navy Federal Credit Union
Your turn
National Mortgage Professional Magazine
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:
NMP News Flash column
Phone #: (516) 409-5555
Note: Submissions sent via e-mail are preferred. The deadline for submissions is the
1st of the month prior to the target issue.
19
NAMB
perspective
THE PRESIDENT’S CORNER: SEPTEMBER 2013
want to take a moment
to thank all of you who
sent me thank you
notes about my umpiring
appearance in the Big
League World Series. It is
because of you, our NAMB members,
that I continue to do this job each and
every month. Being your president is
not easy. It takes about six to eight
hours every day to update information,
write articles, talk to lenders and originators, follow up on government
affairs, speak with account executives,
schedule future events and make sure
that my calendar is up to date to make
sure that I don’t forget anything.
With changes in the lending world
right around the corner, we are trying
to make sure that we get to each congressman and senator and push our
fight. I have instructed our Membership
Committee to reach out to every state
and do what they can to get everyone
who is an originator to join NAMB. This
is becoming a larger-than-life obstacle
with a lot of people who believe that if
“They are not joining your association,
it must not really be important!!” This
cannot be further from the truth. Small
business, mortgage brokers and mortgage bankers are all fighting for their
lives and we need to band together
NOW and prove the fact that we speak
for the originator every day. I know that
you get tired of me always telling you to
join, but if you join, it is actually better
than sending money and not joining.
We need members and we need them
now!!!
I am asking everyone out there who
are originating mortgages and in the
mortgage business to join NAMB—The
Association of Mortgage Professionals.
Nothing says it better than to walk the
halls of Congress and tell them that we
have 25,000-30,000 members.
So you need to join today, and go to
your peers and tell them to join and get
this movement going. It would be really neat to have everyone who is on the
Nationwide Mortgage Licensing System
& Registry (NMLS) to join. I would just
love to see their faces if we could go
there and say we are 100,000 members
strong. They would really have to listen
to us then. So visit www.joinnamb.com
and join as a Silver Member today. It
will cost you $50. That is the cost of a
dinner out on the town. And you will
then be part of a movement to keep
I
20
mortgage professionals in high
demand.
I appreciate everyone giving up
their time to wage this war for our
origination lives. I promise you that I
will do everything I can to try to get
changes made and to make our
industry stronger each and every day
in this fight. But I need you to be part
of it. And you know, this really brings
me to something that I have hanging
on my wall that I look at almost every
day. It is a poem that I feel reflects
my commitment and devotion to you,
our members, as I work each day to
help the originator succeed. It isn’t
much, but I think after you read it,
you will understand my passion for
this industry.
DON’T QUIT
When things go wrong, as they
sometime will.
When the road you’re trudging seems
all up hill,
When the funds are low and the debts
are high,
And you want to smile, but you have
to sigh,
When care is pressing you down a bit,
Rest if you must, but don’t you quit.
Life is queer with its twists and turns,
As everyone of us sometimes learns,
And many a failure turns about
When he might have won had he stuck
it out;
Don’t give up, though the pace
seems slowYou might succeed with another blow.
Often the goal is nearer than
It seems to a faint and faltering man,
Often the struggler has given up
When he might have captured the
victor’s cup.
And he learned too late, when the
night slipped down,
How close he was to the golden crown.
Success is failure turned inside out–
The silver tint of the clouds of doubt–
And you never can tell how close
you are,
It may be near when it seems afar;
So stick to the fight when you’re
hardest hit–
It’s when things seem worst that you
mustn’t quit.
—Author Unknown
I know that you are all out there
and that you read these articles. I am
challenging you all to go now and
join. It’s hard to imagine that we
won’t reach this goal by the end of the
month. Numbers are what it is going
to take. Are you going to just let this
happen to us? To force you to do go
do something that you don’t want to
do. To go find another job that you
will love doing as much as this and
maybe, just maybe, pays you what
you are worth. I don’t think that I am
willing to go and change what I do for
a living. I have been an originator for
almost 38 years and I love doing this.
I like seeing people smile and be
happy because I helped them reach a
goal. I like being an independent
entrepreneur each and every day. I
like setting my schedule to go see my
grandchildren, my kids and my family
on my time. I like umpiring a baseball
game at 4:00 p.m. and not have to
worry whether I made a mistake by
leaving the office early. I like being in
control of how I make a living and
how much I make. It is the American
DREAM, and I live it every day. I also
make DREAMS come true for all of my
customers. I love my life, and I think
all of you do to.
So go do the right thing and go join
NAMB today! Let me count you in the
numbers that I am proud to say are
members. It is now all about the
membership. We cannot wait for
someone else to do this … it now has
to be you. Don’t think that you will
not make a difference. Don’t be the
one that is standing alone. Don’t put
it off until tomorrow … you have to
do it today. As the old saying goes,
“United we stand, divided we fall!”
Now is the time to unite, and the easiest way is membership. Join us and
join us right now! Join today!
Sincerely,
Donald J. Frommeyer, CRMS,
President
NAMB—The Association of Mortgage
Professionals
21
heard
street
ON THE
Our Heard on the Street column is a chronicle of events, changes and passages in the lives of the people
and companies shaping the mortgage industry.
REMN Expands Into
Atlantic City Area
22
Real Estate Mortgage Network
Inc. (REMN) has
announced the opening of their first
Atlantic City area office in Galloway
Township, NJ. Joining REMN in the new
office will be Frank Montufar in the position of branch manager, as well as a team
of highly regarded and knowledgeable
local mortgage experts, including Chuck
Reed, Tom Schindler, Frank DeFrancisco,
Tracy Klos and Lora Dinunzi.
Under Montufar’s direction, this new
branch will extend REMN’s nationally recognized reputation for quality mortgage
products, highly competitive interest rates
and exemplary customer service to home
buyers and real estate professionals in the
Atlantic, Cape May, Cumberland, Salem and
lower Ocean County areas. Montufar and
his team have been recognized for their
expertise in the affordability markets by
providing financing for VA, USDA, the statebacked New Jersey Housing and Mortgage
Finance Agency programs, and most
notably, FHA renovation and rehabilitation
mortgages. True renovation and rehabilitation mortgage experts, Montufar and
Schindler have more than 40 years of collective experience in originating and closing
these specialized mortgage products.
GSF Re-Tools Its Sales
and Marketing Efficiency
GSF, a leading
wholesale,
retail and consumer direct
lender, has selected Vantage Production
LLC’s Vantage Integrated Production (VIP)
to improve the effectiveness and efficiency
of sales and marketing across all of its businesses. Based in Brookfield, Wis., GSF originated nearly $500 million in mortgages in
2012. GSF plans to use VIP to increase loan
officer productivity and centralize sales and
marketing. The platform will also allow GSF
to engage with leads more effectively during both the sales cycle and over the life-ofthe-loan relationship. VIP will be integrated with GSF’s loan origination system (LOS)
and its product and pricing engine.
“Working with Vantage Production will
allow us to deliver marketing efficiencies to
our customers and referral partners,” said
Mike Maida, national sales director at GSF.
“Integration with this platform is an important part of establishing a lasting relationship with those who drive our business. With
VIP, we will have one common CRM database supporting all channels of origination.
This will allow us to replace manual sales
and marketing practices with more strategic
and controlled processes: increasing our
conversions while maintaining compliance.”
Jeff Ishbia of USFS
Wins Ernst & Young
Entrepreneur of the
Year Award
United
Shore
Financial Services
(USFS) has announced that its Founder and Chairman
Jeff Ishbia has won Ernst & Young’s 2013
Entrepreneur of the Year Award for the
Michigan and Northwest Ohio region. The
winners were recently honored at a black tie
gala event held at the MGM Grand in
Detroit, Mich. USFS is the parent company
of United Wholesale Mortgage (UWM), Shore
Mortgage and Capital Mortgage Funding.
Ernst & Young’s Entrepreneur of the
Year award recognizes outstanding highgrowth entrepreneurs who demonstrate
excellence and extraordinary success in
such areas as innovation, financial performance and personal commitment to
their businesses and communities.
“To be named to Ernst & Young’s
Entrepreneur Of The Year list is a tremendous honor,” said Ishbia. “This achievement celebrates the overall fostering of
intra-company entrepreneurship that we
embrace at USFS and an unwavering drive
and commitment by each of our talented
employees that are dedicated to moving
our company forward.”
Ishbia will move on to compete at the
national level of the competition. The
national winners in several national cate-
gories will be announced at the annual
awards gala in Palm Springs, Calif., on Nov.
16, 2013. The awards are the culminating
event of the EY Strategic Growth Forum, the
nation’s most prestigious gathering of highgrowth, market-leading companies.
panel sessions and roundtables, is a frequent thought leader in the media, and has
authored many articles on the topics of valuation management software and various
mortgage technologies that help move the
mortgage industry forward.
Global DMS CEO
Honored by Philadelphia
Business Journal
New Penn Expands Into
Nine New Markets
Global DMS
announced
that the Philadelphia Business Journal designated its
president and CEO, Vladimir Bien-Aime, to
the publication’s 2013 annual Minority
Business Leaders list. Bien-Aime was
among only 23 individuals to earn a spot
on this year’s list.
“It is a huge honor to be among a select
few of the region’s top minority businessmen and women that were named to the
Philadelphia Business Journal’s Minority
Business Leaders list,” remarked BienAime. “I feel privileged to receive this highly regarded award and I look forward to
continue making positive contributions in
everything that I do.”
Bien-Aime is regarded a through-andthrough entrepreneur who commands
professionalism, business ethics and excellence in service. He personifies a minority
owned and operated business—Global
DMS— where he serves in the capacity of
president and CEO. Global DMS is a wildly
successful software firm focused on
automating complex processes in the mortgage banking industry. Bien-Aime constantly strives to inspire creative freedom
and entrepreneurship among his people.
As a result, his company is comprised of
highly dedicated and passionate staff that
thinks out-of-the-box and possesses an
entrepreneurial mindset in business and
the introduction of new ideas.
Bien-Aime is an active participant in
national and regional mortgage banking
trade shows, conferences and events. He
regularly serves as an expert resource on
Nationwide
lender New
Penn Financial
LLC, recently recognized as one of the 500
fastest-growing companies of 2012 by Inc.
Magazine, continues its strong growth in
2013 as the company recently opened in
nine new markets and now operates 50 local
offices across the nation. New Penn has
opened branch locations in Columbia, S.C.;
Estero, Fla.; Knoxville, Tenn.; Las Vegas;
Manassas, Va.; Maryville, Tenn.; Plano,
Texas; Rapid City, S.D.; and Universal City,
Texas. The branch managers of these locations average 10 years of experience in the
mortgage lending industry.
Licensed in 46 states, New Penn has
forged a national industry presence built on
competitive rates, exceptional customer service, and healthy lending practices. Since its
founding in 2008, New Penn has surpassed
$12 billion in loans and provided funding for
borrowers on more than 50,000 loans.
“While rates have increased, they are still
near record lows,” said Brian Simon, chief
operating officer with New Penn Financial.
“For customers looking to buy homes,
whether it is their first home or they want to
consider a new property, it is a great time to
lock in a low rate.”
Total Mortgage Receives
Arizona Mortgage Banker
License
Total Mortgage Services LLC has announced
that it has received its Arizona Mortgage
Banker License from the Arizona
23
LYKKEN ON
leadership
Are You a Peacekeeper
or a Peacemaker?
By David Lykken
am a firm believer in
the power of education to change the
mortgage industry. I
believe that the more educated the
public is about proper management
of personal finances, the more robust
the industry will be. I have written
before about the importance of educating the community. I believe that
leaders in the mortgage banking
industry should go out of their way to
educate the public. They should hold
seminars at libraries, universities,
and conference halls. The more
informed the public is, the healthier
the profession will be.
I also believe that the more educated industry professionals are on
financial products and services, the
more we will see a thriving mortgage
banking industry. While education
isn’t the end-all-be-all, an educated
world increases the chances for a
prosperous world. I have written
I
24
about the responsibility of leaders in
the mortgage banking industry to
own the outcomes of the their salespeople. By that, I mean that great
leaders will ensure the proper training of their people. Depending on the
specific needs of their people, they
will hire trainers, consultants or
coaches to improve the skills of their
people. Education is, without a
doubt, the most powerful, albeit
underutilized tool, for building a
stronger and more durable mortgage
banking industry.
That being said, I believe that
there is a right way and a wrong way
to educate. I’m not talking about
where the education comes from.
Like I said, I believe managers should
educate their sales reps. I also believe
there is great benefit in seeking an
outsider’s perspective and hiring
trainers, consultants and coaches.
And certainly there is value in attaining higher industry-recognized certifications. All of these things are great
for building a stronger team. I believe
the key thing to consider in education
isn’t who is doing the education but,
rather, how the education is being
done.
Here’s the bottom-line: Great education challenges existing beliefs.
Great teachers don’t cater to the perspectives of their students. Instead,
they give their students new perspectives to consider. If the education
only serves the purpose of making
students feel good about what they
already know, it is worthless.
Students never learn anything until
their teachers are willing to confront
the preconceived notions they hold
and show them a new way of thinking. Great education changes minds.
And great learning comes from being
open to that change.
In this way, education is a lot like
leadership. The teacher is a lot like
the leader. Just as a teacher can end
up pandering to the existing beliefs of
the student instead of teaching something new, you, as a leader in the
mortgage banking industry, can end
up pandering to the existing beliefs
and behaviors of your followers
rather than leading them in a new
direction.
A friend of mine recently put it
into terms that really made a lot of
sense to me. As leaders, we don’t
want to be peacekeepers; instead,
we want to be peacemakers.
Whereas peacekeepers are more
interested in appeasing their followers and making sure not to ruffle
anyone’s feathers, peacemakers are
more interested in confronting
issues and changing their followers
for the better. Throughout this article, I want to address a few reasons
why we would all be better leaders if
we were willing to confront problems
head on and challenge the thinking of
our followers. Great leaders don’t keep
the peace; they make it.
The first reason why great leaders
will adopt the posture of peacemakers rather than peacekeepers is that,
while peacekeepers are interested in
maintaining the status quo, peacemakers are interested in provoking
change. If you want your people to
grow, you’ve got to get comfortable
with change. You’ve got to be willing
to break the mold and upset the traditions that they are used to following. A peacekeeper would allow his
people to stay where they are, but a
peacemaker pushes them toward
growth. There is no growth without
change. And, as with all change, making transitions in the mortgage industry comes with growing pains. The
great leader is not afraid to push his
people through these changes in
order for them to become better,
more competitive professionals in the
industry.
The second reason why great leaders will choose to be peacemakers
rather than peacekeepers is that,
while peacekeepers are more likely
to appease their people, peacemakers are more likely to be willing to
confront important issues. History
has shown us time and again what the
drastic consequences can be of adopting a policy of appeasement. Many
militaristic rulers in totalitarian
regimes have taken advantage of the
lenience of opposing countries. In
war, no conflict was ever settled by
allowing the offender to get off scotfree. It’s only when those tyrants
were confronted that they backed
down. It’s the same way in leadership. No, of course I’m not saying that
your people are evil dictators. But
they can get on the wrong track, and
they might need some coaching to get
ested in giving their people what
they want as they are in giving them
what they need. Great leaders aren’t
interested in appeasing, pandering,
or keeping the peace. Great leaders
are peacemakers.
I am not at all suggesting that great
leaders shouldn’t listen to their people or consider feedback from others.
Proverbs 11:14 says, “Without wise
leadership, a nation falls; there is
safety in having many advisers.” I
believe this maxim wholeheartedly.
Great leaders are great listeners.
Great leaders are willing to learn from
others and are always open to alternative points of view. They become
great by surrounding themselves by
even greater people. I want to make
that very clear. Great leaders willingly admit that they stand on the shoulders of giants.
Nevertheless, at the end of the
day and after all has been taken into
account, the great leaders are those
who are willing to take a stand. It’s
easy to simply back down and keep
the peace at all costs, but great leaders will resist that temptation in
order to do what’s best for leading
their people. No one ever said leadership was easy. But, if you are
strong enough to stand up for what’s
right, it will always be worth it in
the end.
So what about you? Which path
will you take? Are you a peacekeeper
… or a peacemaker?
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. 10, or e-mail
[email protected]
om or [email protected].
25
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back on the right track. If you were
trying to keep the peace, you would
allow them to keep practicing the
destructive behaviors that they are
practicing. But if you were instead a
peacemaker, you would be willing to
confront them head on and help
them to regain the proper perspective before they do further damage.
Keeping the peace won’t help. If you
want your people to head in the
right direction, you’ve got to be a
peacemaker.
The third reason why great leaders
will tend toward peacemaking
rather than peacekeeping is that,
while peacekeepers are prone to
burying problems, peacemakers will
be more inclined to solve problems.
Peacekeepers don’t like trouble.
They prefer to think that, if they
ignore it, it will go away. So, they
dust the poor business practices
under the rug and hope that will take
care of the problem. Unfortunately, it
always ends up blowing up in their
faces. If you want to solve the problems your people are encountering,
you’ve got to be a peacemaker.
You’ve got to face the challenge and
deal with it immediately rather than
letting it slide. Especially if the issue
is a matter of integrity or ethics,
you’ve got to solve the problem right
away. But even if it’s a performance
issue, you’ve got to be willing to tackle the issue when it presents itself.
Delaying the solution never solved
the problem. Peacekeepers prefer to
turn a blind eye to pressing issues in
hopes that they will sort themselves
out. But that never happens. If you
want to be a great leader for your
people, you’ve got to step forward
and solve problems right away.
You’ve got to be a peacemaker.
One final reason why great leaders will opt to be peacemakers
rather than peacekeepers is that,
when it really comes down to it,
peacekeepers aren’t leaders at all;
they are followers. Sticking with the
educational theme that we opened
up with, imagine a kindergarten
teacher attempting to resolve a disagreement between two children.
Suppose the children are fighting
over a puzzle. They both want to put
the same puzzle together so, rather
than making them share or take
turns using the puzzle, the teacher
simply buys another identical puzzle so they each can have one. If
that’s the solution the teacher
offered, who really had control in
the situation—the teacher or the
children? Who was really leading
and who was really following? That’s
something that you should ask yourself as you attempt to settle disagreements with your people and as
you attempt to guide your people to
making better decisions and becoming better professionals. If you
attempt to solve their problems just
by always giving them what they
want, aren’t you really following
them? Great leaders aren’t as inter-
A Closer Look at the USDA
Rural Loan Pilot Program
By Rich Obermeier
The USDA Rural Loan Pilot Program was launched on Feb.
1, 2012 to assist current USDA Guarantee Loan borrowers
with refinancing their mortgage to obtain a lower interest
rate with minimal requirements. A USDA Guaranteed Home
Loan can assist most individuals and families in rural areas to become
homeowners. The central purpose of the USDA’s Guaranteed Rural Housing
Program is to help moderate- and low-income borrowers qualify for a
mortgage loan, even if they cannot afford a downpayment. The USDA
program is the only program that allows up to 100 percent financing for
non-veteran borrowers.
Eligible applicants must:
l Be a current Section 502 Direct or Guaranteed Loan borrower
l Meet the applicable adjusted income eligibility limit
l Reside in an eligible rural area, or an area that was eligible a the time
of original loan closing
l Have made timely mortgage payments for the previous 12 months at
the time of the loan application
26
USDA Rural Loan Pilot Program Eligibility Requirements:
l Borrower must have a USDA Guaranteed Loan to qualify
l Borrower must meet income eligibility requirements to ensure that
the household income does not exceed allowable amount
l Borrowers cannot be more than 30 days late on any mortgage payments
over the last 12 months
l The USDA Rural Loan Pilot Program refinance interest rate must be
one percent lower than the current interest rate
States eligible for the Refinance Pilot Program:
Alabama, Alaska, Arkansas, Arizona, California, Colorado, Florida, Georgia,
Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Mississippi, Missouri,
Montana, Nevada, New Jersey, New Mexico, North Carolina, North Dakota,
Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota,
Tennessee, Texas, Utah, Washington, West Virginia and Wisconsin
How to apply:
Applicants may apply with an approved lender of their choice that participates
in the Rural Refinance Pilot Program.
The USDA Rural Loan Pilot Program will be evaluated after two years
to determine whether to continue it, terminate it or make it permanent.
With more than 25 years in the mortgage industry, Rich Obermeier, branch
manager for GSF Mortgage Corporation, has worked with some of the largest
mortgage companies in the county developing retail and wholesale channels.
Rich has assisted in developing and implementing operational protocols for
sales managers, originators and loan processors. In recent years, Rich has
developed the USDA Rural Development Product in multiple states and locations. Rich may be reached by phone at (262) 957-8901 or e-mail [email protected].
gsfsales.com
SPONSORED EDITORIAL
heard on the street
Department of Financial Institutions, and is
now able to originate residential mortgage
loans in the State of Arizona. Total
Mortgage is licensed for lending and brokering activities in Arizona. In conjunction
with its Arizona license, Total Mortgage
opened its first Arizona branch office, located in Phoenix, Ariz., and has named Larry
Gates as the new location’s branch manager. In his new role, Gates and his team will
focus on offering high quality mortgage
lending services, some of the lowest mortgage rates available and personalized service to borrowers throughout Arizona.
Gates joins Total Mortgage with 17 years’
experience in mortgages. Gates has acted as
Arizona area manager for a nationwide
mortgage lender and president/CEO of a
leading mortgage broker firm.
Bay Equity Home
Loans Marks Significant
Growth in 2013
Bay Equity Home Loans nearly doubled its
branches in the first half of the year, having
its largest six months of steady and substantial growth as a San Francisco-based
mortgage lender. The company has added
30 new branches as it expands its reach of
mortgage lending professionals. Bay
Equity’s expansion in 2013 adds to an
already impressive reputation for growth.
In 2011 and 2012, Bay Equity was ranked
by the San Francisco Business Times as
among the “Top 100 Fastest-Growing
Private Companies.” From opening its
doors in 2008, Bay Equity has opened 69
branches and is licensed in 12 states:
California, Idaho, Montana, New Mexico,
Texas, Colorado, Oregon, Washington,
Hawaii, Utah, Nevada, and Arizona.
The branches that joined Bay Equity this
year are experiencing their own success.
Bay Equity’s Costa Mesa, Calif. branch
opened in February. In its first two months
alone, the branch originated $6.5 million
in loan volume. It quickly became a top 10
branches for Bay Equity generating $9.8
million in monthly volume in its third
month.
PRMG Expands Operations
and Adds Regional Manager
Paramount Residential Mortgage
Group
(P R M G ) a n nounced the recent expansion of their
operations into the central United
States, and the Midwest Region. The
Midwest territory will be headed up by
the recent hiring of PRMG’s new regional manager, Brian Reynolds. Brian
brings with him over 17 years of experience in the mortgage industry that
includes leadership roles in both operations and sales. Brian has extensive
industry experience in opening loan
fulfillment offices in multiple locations
throughout the country, and has been
instrumental in growing production
while being the director of operations
at Fairway Independent Mortgage
Corp, director of wholesale (central
division) at Caliber Funding, and
regional vice president at First Magnus
Financial. His background includes
sales, origination, recruiting, and
training support for the companies he
has served.
In his new position as regional manager, Brian Reynolds will be responsible for
recruiting and developing a strong presence in the Midwest territory while overseeing a full service fulfillment operations
center that will be underwriting and funding locally, including generating business
in the states of Illinois, Indiana, Kentucky,
Ohio, West Virginia, Missouri, Michigan,
Wisconsin, Minnesota, and Iowa. Brian
will be reporting directly to Ron Gapp,
Divisional VP, and Herb Lewis, Divisional
VP.
PRMG president and CEO, Paul Rozo,
indicated both he and Robert Holliday,
PRMG COO, are truly excited about the
recent expansion into the central
United States. “We are very confident
that our new fulfillment center will
position PRMG to handle a high volume
of production while also providing
superior levels of service to our customers,” said Rozo.
LoanLogics Announces
Upgrades to Its
LoanDecisions Platform
LoanLogics has
e n h a n c e d
LoanDecisions,
the company’s pricing and eligibility
platform. Specifically, the enhancements are to LoanDecisions’ Pipeline
Management Tool, which now includes
the ability to create custom statuses for
locked loans and the inclusion of additional reporting fields for enhanced
compliance tracking. Also, the
LoanDecisions pricing form now supports expanded pricing characteristics
related to the HomeStyle Renovation
Mortgage. LoanDecisions is the mortgage loan pricing and eligibility solution that is preferred by mortgage
lenders who need more comprehensive investor data and an intuitive user
interface that supports rapid user
adoption.
Users of the Pipeline Management
Tool can now add up to 10 custom lock
statuses to track loans from lock
through close, funding and sale. In
addition, the lock desk reporting feature has been expanded to include 18
additional fields, including status and
margin detail that can be used for
compliance tracking at the branch and
account levels.
“Updating the locked status of loans at
a more granular level provides lock desk
staff with a more complete picture of the
27
NAVIGATING THE ORIGINATION OBSTACLE COURSE
Recruiting Obstacles
& More
By Robert Ottone
28
eff Van Note is a
leading
financial
expert in the New
York area, with over a
decade of experience in the mortgage
industry. He prides himself on getting
to the closing table within 30 days, as
well as driving new business opportunities via innovative services. Van Note is
also a recognized leader in the realm of
customer service.
Covering a variety of topics, Van
Note was keen to shed some light on
common issues that could affect businesses, as well ways to drive business in
a difficult economy. Despite his youth,
Van Note’s experience has been varied
and has made him a top-earner for a
good portion of his career in the mortgage industry. We started with recruiting obstacles and continued to cover a
J
multitude of topics over the course of
our Q & A.
Van Note on recruiting …
“This is a relationship business. If anyone
is going to be
recruiting someone, it should
be a sales
manager, someone who can
manage you
day to day.
You need someJeff Van Note
one who is
going to be in the trenches with you.
It’s important not to be promised the
world because you’re not going to
deliver on it. If you’re selling your
company to someone, you shouldn’t
be out there, that means you’re a
salesman, not someone
to be trusted to hire anyone or
recruit anyone. Recruiters are
worthless.”
Making a comparison to New York
Yankees shortstop Derek Jeter, Van
Note states that: “You’re not going to
send the bat boy to recruit a talent
like that. You need to send someone
who’s in charge of scouting, someone
high up in the company.”
“I’m looking for people who know
the business, can open doors and
meet expectations. I think the people
who recruit are desperate. You can’t
just go out and recruit,” Van Note
said. “You need to hand-pick who you
want. Everyone has a different system,
but this is what works for me. For me,
it’s always been about my gut feeling.
You need to see a sales side and see
the operations side. You need to see
how the operation works, top to bottom, depending on what you’re looking for. If you’re closing three deals a
month, you’re not a tremendous asset
to the company. You want someone
who’s worth their weight in gold.”
What does Van Note
look for?
Some of the more tangible aspects of
what recruiters or those looking to hire
talent are looking for, according to Van
Note, include: “Operations. That’s number one. Without operations, you cannot be a top originator. You could originate $100 million a year, but without
the products and the bank behind you,
what good is it?”
On large banks vs.
small banks …
“I think the larger the company is, the
more important it is
to have infrastructure in place. Small
banks can have a
niche, but they’re
less likely to take on a
huge loan,” Van Note said. “Big banks
have the edge because they have more
outlets. More overhead, more corporate mentality. To be honest, I’d rather
work with a smaller bank that has a
more personal mentality.”
The difference between a
successful loan officer
and a failure …
“They make excuses. If the first thing
they say is ‘my rate’s too high,’ I know
they’re a bad salesman. I can sell to
anyone, at any rate,” Van Note said.
“You’re not in the rates business, that’s
the bank’s deal. If the bank is charging
us 10 percent, that’s the rate. Most of
the time, everyone makes excuses. You
need to weed out who is full of it and
who has an issue to work out. It all
comes down to working harder. You
need to have a drive from within. If
someone has it, you can work with
them. I think that we’re at a time where
people with a great work ethic who are
willing to learn and work within our
system could have a tremendous
opportunity for entry.”
Van Note’s opinions on recruiting
and the principles behind selling may
seem like something out of “Glengarry
Glen Ross,” but there’s no denying that
he’s a top figure in the mortgage industry. In future installments, Jeff Van Note
will answer more questions regarding
topics in the mortgage industry, while
also offering personal approaches to
common issues.
29
for managers
only
Europe Rises From Recession
By Dave Hershman
30
Many have wondered why
interest rates have risen so
sharply this year without
the economy showing significant enough strength to heat up inflationary pressures. Yes, the threat of the
Federal Reserve Board decreasing stimulus by lowering their purchases of
Treasuries and mortgage-backed securities
(MBS) hovers over the markets. Yet, the
Fed would not be considering lessening
stimulus if they were not more confident
about the economy.
One must remember that the Fed put
these extraordinary measures in place to
keep us out of a second recession as the
worldwide economy was slowing while we
were struggling to come back from our
deep recession. How many times did we
hear that Europe’s recession and fiscal crisis could drag us back into recession? The
phrase “double-dip recession” became
commonplace in media headlines for well
over a year.
In the past we have asked the question:
“Will Europe pull us back into recession or
will we lead Europe out of recession?” An
important theory arose this year … if the
real estate markets in the U.S. continued
their recovery, then it was more likely that
our economy would help lift Europe. While
we cannot say there was a direct relationship, the news released recently that the
Eurozone experienced a positive quarter of
growth bodes well for this scenario as well.
It is important to realize that a 0.3 percent growth rate for the 17-nation region is
nothing to write home about. The fact is
that any positive growth represents
progress. One should also remember that
the central banks in Europe have been
applying their own brand of low interest
rate stimulus.
In reality, we realize that Europe is not
out of the woods and we are a long way
from a normal recovery. However, the eas-
ing of Europe’s recession weakens another
significant threat to our economy. The Fed’s
reaction to lessen stimulus is a normal reaction to the lessening of threats. We are still a
long way from ending all stimulus activity by
the Federal Reserve, but the markets now
recognize that we seem to be on the
doorstep of the first move.
Dave Hershman is a top author in the mortgage industry with seven books published,
including The Complete Mortgage
Management Kit. Dave is also director of
branch support for McLean Mortgage. He may
be reached by e-mail at [email protected] or visit www.originationpro.com.
31
Sales
Marketing
Tips
for Today’s
Mortgage
Professional
Cultivating the Fruits of Your Labor
32
Serving clients year-round ensures a bountiful business
JUNE 2013 n National Mortgage Professional Magazine n
even in a competitive market
By Fred Arnold,
CMC
magine for a moment
you are a farmer. Year
after year, the same
specific acre of your farm bears your
best produce. Can you even conceive
of a scenario in which you would purposefully decide to neglect that acre
one year? Of course you can’t, as that
would be nothing short of foolish.
Yet, to a certain degree, that is what
many mortgage professionals tend to
do with their strongest “crops.” In this
case, I’m talking about those clients
in your database who already like,
love and trust you. These clients are
those who are the most likely to yield
new business for you, but for some
reason, you’ve decided to stop nurturing, cultivating and fertilizing that
relationship, perhaps because you
think that it has already been “picked
over.”
Consider that most experts say
that, at any given time, 20 percent of
your clients, friends and neighbors
are looking to buy, sell or refinance.
To illustrate, this means that out of
200 clients, friends and neighbors, 40
of them are in need of your help right
now. So what are you doing to culti-
I
vate that relationship?
The trouble that most sales professionals run into is in thinking that just
because a client recently refinanced
their home, or bought a home, they
no longer need you. Nothing could be
further from the truth. Granted, they
likely don’t need another refinance,
but that’s about the only thing you
know for certain. Fortunately, you’re
in a terrific position to cultivate that
relationship with that client even further, merely by being helpful. They
may need a trust set up, they may
need a new tax professional or may
want to remodel and need a trusted
contractor. You likely have the referrals they need.
Part of nurturing and fertilizing an
existing relationship, so that it ends
up being one of your most fruitful
relationships will involve genuinely
trying to help your clients. To do that,
you will have to get to the root of
their financial goals. This means, of
course, that you’re going to have to
pick up that phone, and call your
clients.
The opportunity to help your
clients never wanes, despite what is
happening with home prices, interest
rates and even a rocky economy. Use
benchmarks such as the year anniver-
sary of their closing or their birthday
to reach out and find out how you can
be of help to them. Ask what their
financial goals are; ask if they are
happy with their CPA or their financial
planner. For that matter, ask if they
even have a financial planner!
The beauty in helping others, without regard for financial reward, lies in
the fact that in business, as in all
things in life, you truly do reap what
you sow. If you’re not convinced,
think about the person in your life
who gives back more than anyone
else. Think of those who are actively
involved in community causes, who
volunteer their time, who know they
can’t save the world, but they can
start by helping just one person, animal or cause at a time. Isn’t that person one of the most fulfilled people
you know? That’s because in giving of
themselves, they are getting a great
deal in return.
By trying to help our clients in all
the ways we can, we are in fact retooling the soil and are adding nutrients
to help that relationship to flourish.
These are people who have already
entrusted us with one of the biggest
investments of their lives, so the onus
is now on us to show them that they
did so for a good reason. Perhaps we
can refer their cousin to a terrific real
estate agent who will work tirelessly
to get them the home they want for
the price they love. Perhaps their
aging mother needs help setting up a
trust and we happen to know the
local area’s most reputable trust and
estate attorney.
There’s no limit to the ways you
can be of assistance to your clients,
which means there is also no limit to
the business and referrals that they
can give to you. So before you ignore
those clients who like, love and trust
you just because they may not need
your current assistance with a mortgage loan, remember that nurturing
and cultivating existing relationships
is always as important as sowing new
seeds.
Fred Arnold, CMC is past president of
the California Association of Mortgage
Professionals and a mortgage professional at American Family Funding in
Southern California. Fred hosts the
radio show SCV Chamber and Business
Spotlight on AM 1220 KHTS, as well as
the televised program “Out of the
Rough” on SCVTV.com, Channel 20.
He may be reached by phone at (661)
284-1150, ext. 109 or e-mail
[email protected].
We’re more than just our niches.
33
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Kelly Taylor, Senior Vice President
StreetLinks Lender Solutions
34
BY DAVID J. COSTER
National
Mortgage
Professional
Magazine’s Mortgage Professional of the
Month for September 2013 is Kelly Taylor,
senior vice president of StreetLinks Lender
Solutions, a nationwide appraisal management company (AMC) based in
Indianapolis, Ind. Recently, we had a
chance to ask Kelly about his career and
the industry.
Congratulations on being named
NMP’s Mortgage Professional of the
Month. Can you give us a quick
overview of your personal and professional background?
I am originally from Colorado, which is
where my mortgage career began. I have
20 years of mortgage industry experience on both the origination and operations sides of the business and I’ve run
large retail divisions from Florida to
Hawaii and everywhere in between.
Seven years ago, I invested in StreetLinks
and became one of the minority owners
and then moved to Indianapolis five
years ago with my wife and four children
to be at headquarters.
How did you come to the AMC business
from lending?
I had used most of the AMCs out there,
so I understood the good and bad of
what AMCs were doing from a lender’s
perspective. I got to know some of the
guys at StreetLinks and felt I could bring
a lender perspective to their business to
help run a company the way a lender
would if they had their own AMC.
At that point, StreetLinks was a small
company. They had good technology,
really good ideas and a solid core foundation but lacked the ability to scale a
business. They hadn’t done anything like
that in the past, but they were eager to
facilitate change and make a huge
impact in the mortgage industry. I was
able to shed some light on the lender’s
perspective of the AMC world. That
insight, coupled with a knowledgeable
leadership team, industry-leading technology and a ton of dedication, kept us
going and allowed us to grow rapidly.
StreetLinks has become a dominant
force in the AMC space. To what do you
attribute the company’s success?
I’d like to think that we were doing
things the right way and that’s how we
gained our market share and retained
our customers. It’s the core foundation
that we had back then, plus the passion
that our team continually pours into
bringing customers the best quality and
service in the industry that have contributed to our success.
Who have been some of your mentors?
One of them would be Ed Wooten. Ed
was my senior vice president when I was
just a loan originator, and then later on
as a manager. Ed was a hard-nosed executive who didn’t accept excuses. He
pushed me to be the best and always
held me accountable. He was also good
at knocking me down when I needed to
get knocked down and was able to dust
me off and get me back up again. He
kept me grounded in constructive ways
so I could continue to learn.
Another mentor that comes to mind
is Steve Haslam, CEO of StreetLinks, who
came on board when I did. Steve and I
have a track record that goes back over
20 years. He is a phenomenal salesperson and has taught me more about sales
than anybody else. Steve instilled in me
an understanding that better management can come from better reporting, so
we track everything that can be possibly
measured and are much wiser for it.
Most importantly, Steve’s philosophy is
“do things right and do right things,”
which has truly been the root of
StreetLinks philosophies as a whole and
paramount to our success.
What do you love about the business?
I love building life-long partnerships and
friendships with our lender clients. It’s
not just about building our business, but
actually going in and helping other
lenders be more successful because of
the things that we do. That approach of
being a partner and not just a vendor is
what builds friendships.
What concerns you about the business
or keeps you up at night?
The regulatory changes that are happening have made the industry incredibly
complex—not only from a lender’s perspective when it comes to disclosures,
requirements and the Consumer
Financial Protection Bureau (CFPB), but
from an AMC standpoint as well. It’s challenging that every state has its own rules
which all vary wildly.
Another is the dramatic increase in
interest rates, which has a massive
impact on the loan volume of a
lender. Refinance volume went from
very robust to almost nothing
overnight and that dramatically
impacts volume for everyone. I also
have concerns about QM, the qualified mortgage rules that are coming
out in January and what impact they
will have on the industry, particularly
on wholesale lenders and mortgage
brokers.
Some lenders complain that AMCs
assign appraisers from too far a distance. What do you say?
Years ago, I was presenting to a large
regional lender in Wisconsin and I sat
down with the guy who was in charge
of appraisals. I think he was saying
that there are people from Milwaukee
driving all the way up to Oshkosh or
Green Bay to do an appraisal, which
L OF THE MONTH
doesn’t make any sense. I agreed with
them. I said, “Mike, what if I give you
reporting on how far the appraiser
comes from on every file?” He was
thrilled. StreetLinks assigns orders first
based on proximity of the appraiser—
then quality measures, and then on
service measures. We don’t assign on
based on fees. Since then it has become
more of a national requirement that
AMCs provide reporting on how far
away their appraisers are and as one of
the first to do it, I like to think we
helped change that in the industry.
You recently announced another
industry-changing innovation. Tell us
about it.
In August, we launched our AppraiserPlus
program that allows appraisers to get paid
at inspection—something that’s been
unheard of for years. Since the Home
Valuation Code of Conduct (HVCC) came
out, appraisers have been getting paid
30 or 60 days after an appraisal was
completed—with some AMCs they
never got paid at all. With
AppraiserPlus, we are paying appraisers
within one business day of the inspection. The program also eliminates
phone, email and systemic message follow up notifications, treating appraisers like professionals and allowing
them to do their job. I think it’s going to
change the industry for the better.
?
are
you
nominated
coming in december 2013
Can you offer a couple of predictions for
the industry over the next two years?
I think you will see fewer AMCs and very
few, if any, captive AMCs. I don’t know
exactly how many AMCs there are
today—hundreds I’m sure—but I see
there being be far fewer in the coming
years. Especially with QM on the horizon, I think it will be difficult for the
captive AMCs to compete effectively. I
think property values will continue to
rise over the next couple of years. I also
think that you are going to see a massive rebound of home equity lending.
Do you believe it is important to be
involved in industry trade organizations
such as the Mortgage Bankers
Association (MBA) and NAMB—The
Association of Mortgage Professionals?
I think it’s extremely important. If you
want to help drive change in the industry, you need to be part of the industry
community and part of the voice of the
industry. The only way to have a positive impact on what’s going to happen
in the future is to work together with
others to formulate those changes in
ways that benefit everyone.
David J. Coster is senior editor of National
Mortgage Professional Magazine. He may
be reached by phone at (919) 559-2171 or email [email protected].
We are seeking nominations from our readers for National
Mortgage Professional Magazine's "40 Under 40"
feature, slated to appear in our December 2013 edition.
Anyone who is under the age of 40 and has had a major
impact on the industry can qualify for this feature. This could
be through innovation, association participation, sales force
automation, community activism, management techniques,
technology or any other significant method that has influenced our industry. We would need a short, three-line bio on
the nominee, along with a color photo and company contact
info to complete the profile. To nominate yourself or someone else, visit https://nmpmag.wufoo.com/forms/m7p8s1/.
NMP Media Corp.
1220 Wantagh Avenue
Wantagh, New York 11793-2202
p 516.409.5555
f 516.409.4600
e [email protected]
w www.NationalMortgageProfessional.com
What should folks in the mortgage
industry know about StreetLinks?
We really want to continually improve the
industry not just from an AMC standpoint,
but from an overall standpoint. We want
to make it better for the appraiser by treating them like partners and ensuring they
get paid more easily and more quickly.
Also, from the lender’s point of view, we
feel strongly that the lender should expect
more from their AMCs and hold them
accountable for quality and service. The
lender should expect their AMCs to back
them when there is a problem with the
appraisal.
35
Do you worry about stories of AMCs and
lenders still pushing appraisers and
attempting to load panels with “preferred” appraisers?
I don’t think anyone really wants an
appraisal that is pushed or not done in a
compliant manner. There is too much regulation out there and too much risk. It’s
not worth trying to push an appraisal to
get a value that is not supported just so
that you can end up getting a buyback a
month, six months, or a year down the
road. Lenders want appraisals done right
and done in compliance. Right means not
low, not high, but supported and accurate. I think that’s what the industry is
striving to do and it gets better all the
time.
We’ve never let people load up
their own panels when utilizing our
AMC services. I think that’s a questionable practice and I don’t know how
you can have a long-term business
doing something that you know is
questionable. It’s just a matter of time
before that shoe drops and you are
out of business.
We only assign orders based on quality, service and proximity, which really
means that the best appraisers will get the
most orders from StreetLinks. Any
appraiser can join most AMCs’ networks
but the ones with a proven track record of
delivering on quality and service within a
given local area will be the ones that see
the most work.
What is your greatest career accomplishment to date?
Without a doubt it would be helping to
grow StreetLinks. When I came on board,
StreetLinks was doing less than 1,000
appraisals a month. In fact, I recall some
days early on where we weren’t even
doing double-digit appraisals in a single
day! Today, we will do 30,000 to 50,000
appraisals in any given month. Seven
years ago, no one had even heard of
StreetLinks and now, I don’t know if there’s
anybody in the industry who hasn’t. I’m
extremely proud of helping us to become
a strong force in the industry and a company who is changing the industry for the
better by setting the bar higher on quality,
service, technology, reporting and innovation. We’re forcing other AMCs to rise to
that level, and frankly, the ones that can’t,
will go away.
An Uptick in
Individual MLO Licenses
280,000
258,948
260,000
252,555
226,010
240,000
222,772
220,000
200,000
184,345
182,458
180,000
160,000
153,464
140,000
120,000
MAR ’13
DEC ‘12
SEP ’12
JUN ‘12
MAR ’12
DEC ‘11
SEP ’11
JUN ‘11
MAR ’11
100,000
DEC ‘10
36
MLO
Licensing
Activity
Company Licenses
36,000
34,000
33,827
32,797
33,124
32,000
30,811
29,916
30,000
28,211
28,000
26,000
25,835
24,000
22,000
MAR ’13
DEC ‘12
SEP ’12
JUN ‘12
MAR ’12
DEC ‘11
SEP ’11
JUN ‘11
MAR ’11
DEC ‘10
20,000
37
shown “steady growth” since the first
percent
quarter of 2012–83,262 MLO applications
licensing through the NMLS employed
data
were submitting during last year, and the
between one to five MLOs during the first
released on July 30 by the
first quarter of 2013 saw a new quarterly
quarter of the year. However, the num-
Conference of State Bank
high of 27,509 applications.
ber of companies sponsoring a single
By Phil Hall
the
first
quarter
companies
that
receive
On the flip side, the CSBS found a sig-
MLO dropped year-over-year (to five
growing trend in the state licensing appli-
nificantly lower volume of new application
percent) while the number of companies
cations under the Nationwide Mortgage
activity for companies, with an average of
with more than 100 MLOs increased 16
Licensing System (NMLS) is shifting away
1,400 per quarter. The first quarter of 2013
percent during the same period.
from companies and more toward the
saw company application activity at 1,494,
Ultimately, the CSBS data suggests that
individual mortgage loan officers (MLOs).
barely higher than the 1,440 level record-
despite the tumult that continues to rock
ed in the first quarter of 2012.
the housing market, loan origination is not
During the first quarter of this year, the
CSBS found the number a seven percent
One of the more interesting aspects
(by any stretch of the imagination) a dying
year-over-year increase in MLOs licensed
of the NMLS data is the geographical
profession. Indeed, the growing level of
through the NMLS. In comparison, the
spread of the license holders. The CSBS
MLOs seeking licensing suggests that
number of unique companies licensed
found that 81 percent of companies
many people view the mortgage industry
through the NMLS saw a year-over-year
holding a license in just one state. But
as a solid foundation for building a career.
decline of 0.2 percent during the same
while the number of companies with just
And even if the number of companies
period.
one license is on the decline (12,838 in
within the industry should decline–either
companies
the first quarter of this year, down from
through the normal cycles of mergers and
licensed declined,” said the CSBS in its
13,232 a year earlier), the number of
acquisition or through any new disruptions
first quarter data report, “the number of
companies holding more than 10 state
in the near future–the quantity of origina-
licenses held by companies increased
licenses has seen a slight increase.
tors appears to be solid. If anything, the
3.5 percent and the number of licenses
MLOs holding one license increased a
near-future looks to be a positive environ-
held by MLOs increased by 22 percent
mere three percent on a year-over-year
ment for the industry.
over the same period, indicating an over-
basis during the first quarter of 2013,
all increase in lending authority.”
while the number of MLOs holding more
Phil Hall is senior editor of National
than 10 licenses spiked by 52 percent
Mortgage Professional Magazine. He
during the same period.
may be reached by e-mail at philh@nmp-
“While
the
number
of
Yes, but where is this increased lending authority centered? The CSBS found
that new application activity by MLOs has
Furthermore, the CSBS found that 75
mediacorp.com.
Supervisors (CSBS) is any indication, the
I
f
of
38
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39
legendsoflending
BY DAVID J. COSTER
40
B
eing considered a “legend”
in any pursuit in life is
quite the accomplishment.
It signifies more than simply longevity … it signifies
extraordinary achievement
as well. That is certainly
true of National Mortgage
Professional Magazine’s
“Legends of Lending”
designee for September 2013, GSF
Mortgage Corporation. Formed in 1995 by
two castoffs from what had been formidable financial firm ITT, Jim Guzanick
and Phil Siebert laid the strong foundation for what became a legendary firm,
presenting a successful role model for
others to emulate.
How do you spot a legendary firm?
From my experience in working with
and interviewing the leadership of
these types of firms over the years, it is
clear that they have one thing in common—they have a story to tell.
Legendary firms are filled with leaders
who are completely immersed in the
history, value and culture of their firm.
They view themselves as the keepers of
the flame, with a responsibility to those
who came before them, those with
whom they currently work and serve,
and those who will follow in their footsteps.
Recently, I interviewed Chad
Jampedro, GSF Mortgage’s newly
appointed president. Well, interviewed
is not exactly the correct term. I scheduled an interview, but what occurred
was simply me listening to a flamekeeper’s story of his legendary firm.
Listening to Chad, who was recruited
to join GSF as an originator in 2001
shortly after graduating from college, I
was able to discern the key components
of the GSF story: Meeting challenges,
selectivity, risk aversion, control, poise,
recognizing opportunity, relationships,
communication, fundamentals, getting
better with time, fun and being focused
on the future.
As I take you through the highlights
of the GSF story, you will hear all of
these components referenced.
A history of
challenges met
GSF’s very existence is due to the
response of two men, the aforementioned Jim Guzanick and Phil Siebert, to
what could have been a very negative
experience. Their employer ITT was a
diversified conglomerate that split into
four subsidiaries in 1995. Financial services was not among the priorities going
forward for ITT, and this led them to
shut down their financial services division at that time. Jim and Phil had
known each other since the 1980s, and
despite being based in different states
(Wisconsin and Illinois), the two
believed that they could create and
manage a successful mortgage brokerage operation together. They took a
chance, but one they believed was not
risky. They believed in their own abilities, in each other and felt the economy
was strong enough to give their venture
an excellent opportunity for success.
Chad described the company’s founding
this way: “Phil and Jim were essentially
out of work. They had severance packages and took them, plus, I think, mortgaging their homes to come up with the
capital to start GSF.”
Challenges were presented to everyone in the mortgage industry in late
2007. Chad’s reflection: “We knew the
‘writing was on the wall’ in the later
part of 2007. We had an investor
approve us on a Monday morning, and
by Tuesday afternoon, they had issued a
statement saying that they were totally
out of the mortgage business.” While all
firms faced the liquidity crisis that
unfolded in late 2007, many fewer firms
had the makeup to meet it head on and
come out stronger on the other side.
How does Jampedro remember that
time? He says, “We have always had a
tight-knit group of branch managers.
We kept them in the
loop as far as what
decisions we were
making from a company standpoint and
the potential risks
we were facing. We
got on a conference
call with the group
and told them what
we saw. We discussed how underwriting was going to
get tighter and how
every loan was going
to be gone through
“Our philosophy
with a fine-toothed
is to embrace what
comb. We had to be
prepared for a secis in the market
ondary market that
rather than what
was going to be scrutinizing loans like
was, and to respond
never before. We
as quickly as
told them we would
possible.”
need their help
because the loan
doesn’t begin on the
Chad Jampedro,
underwriting side, it
begins with originaGSF Mortgage
tion.” Then he added
a crucial nugget as it
relates to understanding why GSF
Mortgage Corporation is a legendarytype firm: “We told
them we would need
to embrace this
change in order to
make it a competitive advantage for our was careful management of their lines
customers and to reassure our referral of credit, which represented their
partners.”
ability to stay in business. Jampedro
During the crisis, GSF focused on remembers it as follows: “We were
the “fundamentals of loan origina- very careful about the loans we did
tion,” which Jampedro defined simply book so they would come off our lines
as, “carefully originating and under- quickly and allow us to meet contract
writing loans for customers who are dates and satisfy demands from our
worthy of being extended credit.” But referral partners.” Chad continued,
another fundamental important dur- “We originated through it. Our referral
ing this liquidity-constrained period partners calmed down, our originators
mortgage
technology
providers
directory
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calmed down and got back to work. It
allowed our management to deal with
the regulatory and investor issues that
were coming up.”
The early move
from broker to banker
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NMP Media Corp.
1220 Wantagh Avenue
Wantagh, New York 11793-2202
p 516.409.5555
f 516.409.4600
e [email protected]
?
Recognizing
opportunities
GSF’s founders recognized an opportunity in 1995 that existed in mortgage
loan origination. They recognized the
advantages that come from the banker
business model much earlier than
most of their contemporaries. They
later developed a specialized wholesale channel, and more recently, a
servicing platform to capitalize on
other opportunities they saw in the
marketplace.
Due to their geographic base in the
rural and semi-rural Midwest, they
developed an expertise in underwriting USDA Rural Development loans.
Both through their retail branches and
as a wholesaler, GSF has become a
leader in the USDA lending space.
Jampedro says, “In most of the areas
in which we lend, USDA loans are
prevalent, and every one of our underwriters is an expert in these loans.”
Regarding their wholesale lending,
Chad adds, “We are committed to the
wholesale channel as long as it remains
41
In addition to the circumstances of its
founding and the crisis that began in
2007, there was one additional period
of significant challenge in GSF’s history. In 2003 the firm made, what was,
at the time, a seemingly unusual decision—to move from the broker to
banker business model. In a booming
time in the mortgage industry that
featured extreme competition and an
array of product choices, brokers and
their originators were growing market
share and making considerable
money.
But something about the broker
model didn’t fit with the philosophy
of the firm’s founders. As Jampedro
explains, “We made the switch from
broker to banker at a time when it
was not considered an advantageous
business plan. As a result, we lost 30
percent of our originators.” But the
change was crucial to GSF’s ability to
weathering the coming industry crisis
Jampedro asserts, “Phil and Jim are
risk-averse, but also visionary. Control
was the big reason. Not simply control
over the business, but control over
individual transactions.” According to
Jampedro, GSF’s founders wanted a
say in the decision-making on underwriting because they saw that as key
to developing relationships with customers and referral partners.
This control over the service that is
provided becomes even more important in the future as the industry faces
the transition to a purchase-orientation and rising rates. Jampedro’s forecast is this: “The market will become
ultra-competitive and that competition will be very much focused on
service levels. We believe superior
service levels are achieved through
communication. Real estate agents
want to know that originators have an
open line of communication to underwriters and can pass information back
and forth quickly to meet contract
dates. For real estate agents, nothing
is more important than meeting contract dates.”
One benefit is already being seen in
the new competitive environment—
originators are getting better and having more fun. According to Jampedro,
“It’s great to see the energy that is
coming from originators as they get
back to the traditional building of
relationships and marketing. They are
coming in with new ideas. It’s great to
see everybody working in that way and
having fun!”
Marketing Compliance Corner:
Social Media
By Michael J. Wallace Esq.
There is a requirement from the Consumer Financial Protection Bureau (CFPB) that mortgage companies have a
Compliance Management System (CMS). We will focus on issues specifically relating to marketing and lead programs
with a CMS. We want to provide useful information to assist you in the
management of risk regarding marketing & lead acquisition for your mortgage company.
In January of 2013, the Federal Financial Institutions Examination
Council (FFIEC) requested comment on its proposal, “Social Media: Consumer Compliance Risk Management Guidance,” in the Federal Register.
The period for comments closed in March, and it appears that regulations
concerning social media are coming.
Social media is an exploding and fast-changing communication
medium and a very powerful marketing platform. Mortgage companies
and mortgage loan originators (MLOs) are embracing social media more
and more each day. You can use this medium while satisfying the needs
for compliance.
The definition of social media is very broad and fluid. It includes email, Web sites, blogging, Facebook, LinkedIn, Twitter and other such
sites.
What can mortgage companies do now to reduce risk with social
media? It is important that your social media policy and procedure plans
be in writing. Here are a few ideas to consider in developing your plan:
42
1. Develop a library of approved content based upon social media outlets
for your MLOs and other marketing programs.
2. Establish an approval process for content for posting and require preapproval of content.
3. Require disclosure by MLOs for all social media sites they are using.
4. Require all Web sites to be pre-approved before launching.
5. Develop a library of Web site templates for use by MLOs.
6. Require employees to use approved e-mail addresses connected to
company and not personal e-mail accounts.
7. Indicate that periodic reviews of sites will be performed and develop
a review process based upon CFPB guidelines.
8. Establish responsibility for compliance to a senior staff person.
9. If you have a wholesale channel, review the social media risk plan that
your brokers/bankers have in place or recommend that they adopt one.
The CFPB, as well as state regulators, will review your plan, but also
determine if you are, in fact, using it. If you have a wholesale channel,
you are also responsible for your brokers/bankers. Don’t just shelve the
plan and dust it off when regulators come knocking on your door.
Social media is a great way to interact with borrowers and an exciting
technology that you need to embrace. With a little planning and thought,
you will be able to manage risk while enjoying the benefits of social
media.
Please feel free to contact me with any questions or comments.
Michael J. Wallace Esq. is president of CLIX MG. Marketing Compliance Manager (MCM) is a Web-based compliance management system for marketing
and lead programs, including social media. For a 15-minute live demonstration, please visit www.clixmg.com. He may be reached by phone at (727)
474-0961 or e-mail [email protected].
SPONSORED EDITORIAL
NAPMW REPORT
S E P T E M B E R
2 0 1 3
Regional Education
Highlights NAPMW’s
September Schedule
elcome to the National Association of Professional Mortgage Women
(NAPMW), a national organization comprised of four regions broken
down into 30 local groups spread across the country, from California
to New York, Alaska to Texas. NAPMW was founded in Seattle, Wash. in 1964,
and we will be celebrating its 50th anniversary during the association’s 2014
National Education Conference in May 2014. Come and join us … it will be a
Golden Opportunity!
NAPMW is a not-for-profit organization with an emphasis on education.
The association’s membership includes mortgage professional men and
women, as well as professionals in mortgage-related industries. NAPMW’s
vision is to provide business, professional and leadership development
advancing women and men in mortgage-related professions. Our defining
statement is to serve all mortgage professionals who want to excel and
employers who want excellence. For additional information, log onto our
Web site at www.napmw.org.
In addition to our annual National Education Conference, you will not
want to miss out on our upcoming Regional Educational Conferences. This
year, the NAPMW Central Region, in conjunction with the NAPMW Eastern
Region, will hold their annual Fall Education Conference in New Orleans, La.
on Sept. 19-21 Education topics will include regulatory compliance, mortgage
fraud, mortgage underwriting, title company red flags and using social media
to optimize professional marketing. The keynote speaker will be Sally-Ann
Roberts, co-anchor of the highest rated local morning news program in
Louisiana. You will not want to miss this event. NAPMW Central and Eastern
Regions invite you to attend and learn more about the benefit of membership
with NAPMW. This conference is being held in the heart of New Orleans at the
Downtown Marriott and will offer mortgage education to help you and your
companies navigates the ever-changing mortgage business. Along with some
great education, be sure to find time to enjoy the sights and sounds of the
host city. For more information, e-mail [email protected]. You can
also follow the link and get more details and register online at
http://napmwneworleans.eventbrite.com.
The NAPMW Western Region is also holding their Annual Fall Education
Conference on Saturday, Sept. 21 at the Hennessey’s Tavern, downtown on
Freemont, in Las Vegas, Nev. There is a full-day of educational classes and
also a Regional Board Meeting on the agenda. Education sessions will help
you learn about applications for your electronic devices to increase business
and there will be a session on if repairing credit really works. It will be a great
time to network and to get to know more about the Western Region. For more
information on how to register and/or the educational offers, please contact
Susan James at [email protected] or Pat Beebout at
[email protected]. You can immerse yourself in a rich entertainment setting in vintage Vegas. Come join the Western Region for some great education
and stay for the fun.
Both conferences will provide some great educational and networking
opportunities. Please take advantage of the opportunities that NAPMW has to
offer by attending one of these Regional Conferences.
W
For more information on all NAPMW events, visit www.napmw.org.
TimE is monEy
43
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Selecting the Right AMC:
What Lenders Need to Know
By Vladimir Bien-Aimé
Working with the wrong appraisal management company
(AMC) can slow the appraisal process, cost you money, cause
potential reporting gaps and create exposure. You have to
be discriminating when deciding which AMCs to use, as
many AMCs lack the qualifications to properly execute, and the lender is
ultimately responsible for any errors the AMC makes.
There are numerous constantly changing compliance regulations that
lenders must adhere to. Now, more than ever, it is imperative to remain
in compliance or risk being fined, receive buy-backs or have appraisals
delayed which can kill deals. Most lenders turn to AMCs to manage what
has become a much more intricate and complex process than it once was
amid compliance mandates. But be careful, not all AMCs are created
equal. A significant number of AMCs lack technology, expertise and stability to effectively handle the process and produce compliant appraisals.
However, if you select the right AMC to work with, you’ll lower costs, reduce risk, prevent fraud, speed up turn times and sell compliant loans to
the secondary market.
There are number of things to consider when selecting an AMC. Below
is a checklist to help guide you.
44
l Make sure the AMC is truly national and licensed in every state. Most
AMCs are not. Unbeknownst to lenders, it is not uncommon for them
to outsource appraisals to AMCs that are licensed in states they are not.
This introduces a third party that can complicate matters.
l Make sure the AMC uses sound technology to automate the appraisal
process. Does the technology offer ease of communications, status updates and detailed reporting? Does the AMC offer a mobile application
that appraisers can utilize in the field? Can their technology integrate
with your LOS?
l Make sure the AMC is Uniform Collateral Data Portal (UCDP) compliant,
uploads appraisals to the UCDP in a Uniform Appraisal Dataset (UAD)
compliant format, and returns a compliance certificate.
l Make sure you check references and Google the AMC (the results might
surprise you). All too often, lenders make the decision to work with
AMCs without doing this. The AMC’s reputation is very important. For
example, some are slow pay or don’t pay their appraisers, resulting in
unexpected financial liability. Certain states, like Texas, require AMCs
to be paid within 60 days.
l Make sure the AMC has been in business and is established along with
what their attrition rate is among the staff? It’s telling. Many AMCs
sprang up due to an uptick in demand, and many later closed their
doors with limited to no notice.
l Make sure they are experienced. What is the combined experience of
their management team? Do they fully understand the appraisal process?
l Make sure the AMC has a robust reporting structure. If the CFPB audits
you, the burden of proof is on your organization. Detailed reports will
prove you are handling appraisals efficiently and compliantly.
l Make sure their fees are customary and reasonable per the Dodd-Frank
Act. Many overcharge you and underpay appraisers. Score the AMCs
and then make an informed decision based off capability and price.
Don’t just rush into an engagement and wait to see how they perform.
Just because you have an AMC managing your appraisals, it doesn’t
mean you have nothing to worry about–unless you selected the right AMC.
Vladimir Bien-Aimé is president and chief executive officer of Global DMS.
Since co-founding Global DMS in 1999, Bien-Aimé has grown the company
to capture a leading share of the appraisal management segment, with a
client base of over 20,000 unique users and a 100 percent retention rate
among lender clients. He may be reached by phone at (877) 866-2747 or
visit www.globaldms.com.
SPONSORED EDITORIAL
The
Mini-Correspondent
Channel:
Pros and Cons
BY
JONATHAN
FOXX
everal years ago, our firm, Lenders
Compliance Group, provided
unique guidance to the mortgage
division of a bank. The bank wished to
build a special origination platform for
its mortgage brokers. At that time, the
prevailing regulations required disclosure of the yield spread premium (YSP),
and the bank wanted to give their thirdparty originators (TPOs) an opportunity
to close in their own name, with their
own funds, and, among other things,
by-pass disclosure of the YSP. In building the platform for the bank, many
features were needed to implement
these relationships in accordance with
federal and state law, as well as safety
and soundness metrics. This all took
place at a time when a three percent fee
cap on broker revenue was not even a
glimmer in the eyes of legislators or regulators, and Elizabeth Warren1 had yet
to promote the creation of the
Consumer Financial Protection Bureau
(CFPB).
As Shakespeare wrote in The
Tempest, “What’s past is prologue.”
Since the early part of this year,
many lenders are building a new origination channel. The proximate cause
for the new channel is found in the
Final Rule pertaining to the Ability-toRepay guidelines and the requirements
of a Qualified Mortgage (Rule).2
The new channel is meant specifically for brokers who hope to bypass a
three percent cap on loan amounts
above $100,000, the new CFPB requirement that substantially and principally
affects broker TPOs.3 The loans covered
by the Rule are first lien and junior lien
mortgage loans that are closed-end
mortgage loans secured by a dwelling,
including home purchase, refinance
and home equity loans. (Excluded loans
are HELOCs; Timeshares; Reverses;
Bridges with a term of 12 months or less
and loans to purchase a new dwelling
where the consumer plans to sell another dwelling within 12 months; Vacant
Lot loans; Loan Modifications not subject to the “refinancing” provisions
under TILA; and Business Loans.)4
S
MICHAEL G.
BARONE
In particular, many brokers usually
seek to charge fees between two and
three percent per loan transaction;
however, as of Jan. 10, 2014,5 any excess
above three percent in total points and
fees virtually guarantees that such
loans, originated by brokers, will not be
eligible for treatment as a Qualified
Mortgage (QM). The result of the Final
Rule and specifically the three percent
cap is to create an incentive for many
brokers to morph into a new kind of
correspondent, termed the “MiniCorrespondent.” The new origination
channel developed by some wholesale
lenders is aptly called the “MiniCorrespondent Channel.”
One of us, Jonathan Foxx, has written extensively–both in magazine articles and newsletters–about the
Ability-to-Repay guidelines (ATR), the
Qualified Mortgage (QM), and the
Non-Qualified Mortgage (viz., which
he has titled the “NQM”). For additional details and guidance, please read
those publications.6
In this article, we are going to
explore two interrelated issues. First,
we will discuss the three percent cap, its
implementation and placement within
the QM framework, and the way it
affects the originations of the mortgage
broker. To do that, we will provide the
QM framework into which the three
percent cap is situated. Secondly, we
will discuss the structure of and certain
requirements relating to a mini-correspondent TPO. Bear in mind that this
new type of TPO is taking place in a
dynamic regulatory environment and
loan origination market; therefore,
aspects of our observations may
change, due to a regulatory response,
or other material factors, that pertain
to originating loans through this new
channel.
Two classes of
qualified mortgages
Essentially, the Rule creates two types
of QMs, one of which provides a safe
harbor from liability and another which
does not provide a safe harbor, but
percent cap any compensation paid,
per transaction, by a mortgage broker
to an employee of the mortgage broker and compensation paid by a creditor to its loan officers. Compensation
paid by a creditor to a loan originator
other than an employee of the creditor (i.e., paid to a broker by a creditor
on a lender paid transaction) is
included in the three percent cap
along with other upfront charges paid
by the consumer to the creditor or its
affiliates.9 Furthermore, the three
percent cap includes certain fees paid
to affiliates, mortgage originator compensation paid directly or indirectly
by the consumer, and amounts
imposed by secondary market
investors and passed through to bor-
rowers to compensate for credit risk.
When these “points and fees” are factored into the loan origination costs,
many loans will exceed the three percent limit.10
The mini-correspondent
channel
Many brokers feel they are being unfairly singled out, since only their compensation is included in the three percent
cap. As such, many lenders, to whom
brokers are a tremendous revenue
stream, have explored certain remedial
options–one of which is the “MiniCorrespondent Channel.”
Most Mini-Correspondent Channels
are set up in a manner that the work
flow is as follows: A broker obtains a
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Qualified mortgage and
the three percent cap
As mentioned above, a QM with an APR
that does not exceed the APOR thresholds receives a safe harbor from liability (i.e., compliance with the ATR guidelines). If the APOR thresholds are
exceeded, this means that the loan is a
higher-priced QM, and, as such,
receives the rebuttable presumption of
compliance. In effect, the two classes of
QM constitute a prime and non-prime
market, with the prime entitled to safe
harbor and the non-prime entitled to a
rebuttable presumption.8
But there are several challenges that
a lender must overcome in order to use
the safe harbor defense, one of which is
the three percent cap. The Rule
excludes from the points and fees three
lending license in the jurisdiction(s) in
which it seeks to lend. Some states have
a correspondent lenders license
designed only for correspondents (i.e.,
Pennsylvania) and the requirements are
less stringent than those states that
require a correspondent lender to
obtain a lenders license not limited to
correspondent lending. For example,
New York, does not have a correspondent lenders license, and therefore a
broker who wants to be a correspondent lender would need to apply for a
New York State Banker’s License. After
the license is obtained, the broker (now
a mini-correspondent) would enter into
agreements with lenders to whom it
does offer a rebuttable presumption of
compliance with the Rule. Obviously,
the former is preferred, though the latter is not without its merits.
The safe harbor is only available if
the creditor complies with all aspects of
the Rule, including, at minimum, all
the ATR guidelines, and where the
Annual Percentage Rate (APR) on a first
lien loan must be within 1.5 percentage
points of the “average prime offer rate”
(APOR) as of the date the interest rate is
set (viz., the APR on a junior lien must
be within 3.5 percentage points of the
APOR).7 If the APR threshold is exceeded, the creditor has a rebuttable presumption of compliance.
The distinction between the safe
harbor and rebuttable presumption is
very significant. With the safe harbor, a
lender obtains a conclusive presumption of compliance and may refute a
claim that it violated the Rule, such as
not complying with the ATR guidelines.
But if the lender obtains only a rebuttable presumption of compliance, a
claim can be litigated on the basis of a
creditor not making a “reasonable” and
“good faith” determination of the borrower’s ability to repay, irrespective of a
lender’s complying fully with various
aspects of the Rule, such as the ATR
guidelines.
The ATR test promulgated by the
Rule consists of eight factors. Neither
the safe harbor nor the rebuttable
presumption is available to a lender
solely because a loan is underwritten
to the ATR test’s guidelines. The ATR
factors require the lender to underwrite and verify (1) current or reasonably expected income or assets, other
than the value of the dwelling, (2)
current employment status (viz., if the
creditor is relying on employment
income), (3) monthly payment, (4)
monthly payment on any “simultaneous loan” of which the creditor is (or
should be) aware, (5) mortgage-related obligations, (6) current debt obligations (including alimony, palimony,
and child support), (7) monthly Debtto-Income (DTI) ratio or residual
income, and (8) borrower credit history. It should be noted that the ATR test
itself does not place limits on points
and fees.
NMP’s Inside Look
T A G Q U E S T
Helping Mortgage Lenders Customize Their Marketing to Reach the Right Client in Real-Time
An Interview with Caleb Guillory
President of TagQuest Inc.
46
aleb Guillory is president of
TagQuest Inc., a leader in
the
direct
marketing,
prospect management and
lead generation arenas.
Based in Medford, Ore.,
TagQuest works with many
leading financial services
firms and has deep experience working
with mortgage lenders to enhance their
sales process. Through its data-driven, customized targeted marketing campaigns,
TagQuest helps mortgage sales teams
directly reach qualified prospects and close
more loans.
Tag Quest’s Web-based reporting capabilities, such as its Leads Tracker, allow the
firm’s clients to increase control over sales
and marketing efforts, improve efficiency
and productivity, as well as gain control
over lead tracking and account status.
TagQuest’s solutions also drive sales and
marketing productivity, which allows
clients to lower customer acquisition costs
and drive new revenue opportunities
through superior customer care. To learn
more
about
TagQuest,
visit
www.tagquest.com.
National Mortgage Professional
Magazine recently sat down with Caleb
Guillory to get an update on TagQuest.
C
Can you give our readers some background on how TagQuest was founded?
TagQuest was started in 2004 as a data
provider selling data lists and prescreened leads from the credit bureaus
and other data files. The company
evolved into a full-service marketing firm
out of necessity. Once a client had the
data or leads in their hands, they wanted
but more importantly needed, to know
how to effectively market directly to their
potential customer.
The mortgage industry has always
been our top market and will continue to
be as we move forward. We understand the mortgage
business and what
our clients need to
be successful, especially in a purchasedriven market. Our
mortgage industry
expertise and our
full understanding
of all compliance
rules/regulations
allows TagQuest to
target a better
prospect, with a
higher conversion
rate and a higher return-on-investment.
cess, it would have to
be compliance. We are
one of the most compliant marketing firms
in the nation. The
Consumer Financial
Protection
Bureau
(CFPB) is looking closely at predatory lending
and paying close
attention to how mortgage lenders are marketing. Even though
we are not a legal entity, we are able to help
our clients get education on compliance
and how it could affect them.
What are the keys to the success of
TagQuest’s product offerings?
Our unique value proposition is called
“Customized Customer,” and has three key
criteria: (1) Lasts the longest; (2) Is the easiest to work with; and (3) Is the most profitable. This approach is the backbone of
our company. In addition, saving our
clients time saves them money. We don’t
have “widgets.” We customize each campaign for our client based on their needs.
Most marketing companies have one or
two products or services that they offer. We
have hundreds. It does lengthen the startup process for new companies using
sophisticated marketing techniques for the
first time, but our clients agree that it is the
right process. Being able to offer a full
spectrum of marketing services allows our
clients to have a one-stop marketing firm
they can grow with and change their campaign as the industry changes. It eliminates
the need for clients to move from one marketing company to another, which has
become common for many mortgage
lenders and professionals.
If I had to pick a second key to our suc-
What is TagQuest’s current client focus?
At this time, it seems we are working with
and getting new inquiries from larger corporate companies that have national
licensing. But, we have a strong niche
within the mortgage industry and work
with many start-ups and mid-tier lenders.
We pride ourselves on being able to help
everyone, no matter what type of loans
they write, the channel they originate in,
or location or size.
What type of growth is the company
experiencing?
Over the last three years, we have grown
by over 300 percent. Year to date in 2013,
we are currently tracking at a run rate of
200 percent over the same period in
2012. We are growing rapidly and to manage that growth, we just opened a satellite office in Seattle, Wash.
What exactly is driving your growth?
Our laser focus on execution and our “no
customer left behind” philosophy. We are
not a company that just rides the waves.
We do our best to create new waves. Our
newest product line includes “Live
Transfer Leads” that seem to be creating
quite a buzz and demand in the mortgage industry.
But as far as driving force, that credit
would have to go to our talented sales
team. We are relentless about following
up and diligent in our outbound marketing efforts. Marketing sometimes gets put
on the back burner, so we stay on top of
our clients ensuring they don’t miss
opportunities.
Can you give us a little more detail on
“Live Transfer Leads?”
TagQuest provides exclusive live transfer
leads 24/7 to match any lead generation
model our clients use. One of the frustrations with the purchase market has been
how long the loans take to fund. Some
firms even suggest using aged Internet
leads for the purchase market. We listened to our clients and are utilizing multiple channels from outbound to inbound
telemarketing and blending data lists
with real-time and aged leads. Then, we
call the prospect, make sure they are
qualified, interested and transfer them to
our clients live to speak with them—realtime marketing.
For refinance live transfers, we use
select criteria, such as loan amount, credit rating, loan type, interest rate and
many others to pre-qualify the prospect
before transferring a call. Our clients are
realizing significant returns. One of our
success stories was able to get seven sets
of signed docs back to his office within
three days of receiving his first call. In
those three days, he received a total of 21
calls. That’s a 33 percent close ratio and
that doesn’t take into account his
pipeline and how many more loans he
will fund from the program. The program
is making the mortgage business fun
again and delivering results.
the mini-correspondent channel
previously brokered loans (hereinafter
referred to as the “investor”), whereby
the mini-correspondent would take the
application but the investor would
underwrite the loan. The loan is then
closed in the name of the mini-correspondent, but usually funded by the
investor’s warehouse line and immediately assigned at the table by the minicorrespondent to the investor.
In the foregoing arrangement, the
mini-correspondent’s participation in
the loan process is almost identical to
its participation when it acted as a broker. The only additional step is that the
loan is closed in the name of the minicorrespondent. Nevertheless, this takes
very little or no time and effort for the
mini-correspondent, because the
investor usually prepares the loan documents for the mini-correspondent and
sets up the closing with the settlement
agent just as it did when it was the
lender and the mini-correspondent was
a broker.
These are benefits of a broker transforming itself to a mini-correspondent
and are easy to see:
Mini-correspondents:
A good deal?
Put your face
on the one
thing people
use most.
Your personalized app can
be ready in 5 minutes.
It’s that easy.
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47
• The always-on business card
• Track the leads as it goes viral
• Engage clients and prospects
with interactive tools and videos
Ready to get started?
Go to MortgageMapp.com/MO
and sign up today!
©2013 Front Pocket Marketing
So, this seems like a no-brainer!
Perhaps all mortgage brokers should
start lining up as many mini-correspondent lending channels as possible!
Right? Not so fast and maybe not at all.
First, many mortgage brokers will
have a hard time qualifying for a
lenders license in the jurisdictions
where they wish to lend. While the
requirements vary from state to state,
most states have higher net worth and
bond requirements for correspondent
lenders than brokers. A broker will not
be able to move into the MiniCorrespondent Channel if it cannot
meet these net worth and bonding
requirements.
Second, many states, such as New
York, require a correspondent lender to
have a warehouse line with a minimum
$1 million limit even if the correspondent lender plans to have their loans
funded by the investor’s warehouse
line. Warehouse lines are not easy to
obtain, and the requirements of warehouse lenders include many items
which a mortgage broker may not have,
because these eligibility criteria are not
necessary for a broker to acquire. For
example, a warehouse lender will
require audited financial statements
and have their own net worth requirements which frequently exceed the
state’s net worth requirements.
Warehouse lenders also may require a
certain amount of the assets to be liquid. If a correspondent lender should
be lucky enough to obtain a warehouse
line, it must then deal with the
increased financial reporting obligations to the warehouse lender and the
annual due diligence reviews conducted
by a warehouse lender. If the correspondent lender then allows its loans to
be funded by the investor’s warehouse
line, the correspondent lender will
incur non-usage fees, which add up
over time.
Third, as a correspondent lender, the
mortgage broker has an increased level
of risk, because it is now the lender, and
when a loan is closed in its name the
level of risk and responsibility rises. If a
correspondent lender decides to fund
the loan on its own warehouse line and
subsequently assign the loan to the
investor, the correspondent lender
incurs the risk of loss if the loan cannot
or will not be purchased by the investor.
Other enhanced responsibilities fall
upon a correspondent lender such as
abiding by all of the rules pertaining to
regulatory compliance (i.e., requirement of Quality Control Audits, responsibility for adhering to high cost limits,
and so forth).
Fourth, correspondent lenders have
further requirements when it comes to
FHA loans. A correspondent lender
needs to be approved as an FHA NonSupervised Mortgagee. In order to
become an FHA Non-Supervised
Mortgagee all state licensing requirements must be fulfilled. FHA requires
correspondents to have an adjusted net
worth of at least $63,000 plus an additional $25,000 for each registered
branch. In addition, correspondent
lenders must have 20 percent of their
adjusted net worth in liquid assets
(assets not restricted or reserved for
payment of anything other than current
liabilities) which do not include lines of
credit or loans payable. A NonSupervised Correspondent Mortgagee
must select a Sponsor (viz., the investor
in the foregoing example) who must be
a Direct Endorsement (DE) mortgagee
and register such Sponsor in FHA
Connection. There are many other FHA
requirements as further set forth in FHA
Handbooks and Mortgagee Letters that
apply to correspondent lenders and not
brokers.11
Thus, correspondent lending is not
for everyone. This option must be care-
(1) No more worrying about the three
percent cap as fees paid by a lender
to its loan officers are not included.
(2) The lender paid compensation does
not need to be included on Box 1 of
the GFE.
(3) The mini-correspondent could
receive fees from a borrower (on a
borrower paid transaction) and also
from the investor on the sale of a
loan.
(4) Many anti-steering concerns are eliminated as the mini-correspondent is
not a lender and not a broker.
Work-Life
By Eric Petersen
oday, many companies are coming
to the conclusion
that there are
more to company benefits than just
the usual perks. In an ever-changing,
competitive world of adding top talent, culture plays a big role. During
the recruiting, hiring and retaining
process, it comes down to culture.
Although culture can encompass
many aspects, one that seems to
stand out as an overlooked fringe
benefit would be work-life balance.
In some cases, the individual candidate is not even aware that this is a
component to consider when evaluating companies.
A recent Accenture survey of 4,100
business executives, from medium- to
large-sized organizations, revealed
work-life balance—above compensation, recognition and autonomy—was
the determining factor in the overall
success of their careers. The results
also found half of those surveyed had
turned down job offers due to how
the job would impact their life.
The term itself, work-life balance,
will mean different things to different
people. Some may define this to be a
correlation of lifestyle and career, or
what I want to do versus what I need
to do. It is not just a matter of companies saying they offer this, but they
need to know how it is defined by the
individual. Only then will a company
have the right model match culture
for that particular employee or candidate.
At Hammerhouse, we have assisted
many candidates in evaluating concerns about their current work environment, including work-life balance,
which may not be consistent with their
personal needs. That’s when we put our
model-match methodology to work
using our six core components. We
break down each individual’s wants
and needs and match them with a company that offers those facets. We’ve
been fortunate to help many professionals find a more appropriate fit and
a greater level of overall career and
personal satisfaction.
Recently, we had the opportunity
to work with a client who has been in
the mortgage origination business for
more than 20 years. This elite top producer had been working under the
same management team for more
than 15 years, and was not only successful, but genuinely liked the individuals with whom he was working. At
a certain point, however, he was faced
with serious and unexpected health
issues that required major surgery
T
48
e Balance: Find Your Model-Match
Hammerhouse, and when I needed
them, they were there. This was all
based upon Hammerhouse listening
and finding the right model-match.”
He adds, “It turned out to be a brilliant move, for my career, my personal life, my financial life and my
health. It’s the best company I have
ever worked for. I’m very grateful.”
Regardless of the type of work-life
balance challenges presented, finding
the right model-match for both parties
is a win-win situation. Employees are
happier, have increased job satisfaction, and achieve greater success; while
companies can target, attract and
retain top talent, and improve the organization’s success over the long-term.
Eric Petersen is a managing partner at
Hammerhouse LLC, an expanding
national recruiting and strategic
growth firm for the financial services
industry with mortgage sales and leadership placement at its core. He may be
reached by phone at (949) 525-9408 or
e-mail [email protected].
49
and had him laid up in bed for two
months.
“You start thinking about how to
make your life better, and I uncovered
what I thought was important and
very specifically wanted to find a new
company.” It was in that moment he
decided there had to be a better way.
He was internalizing a lot of stress and
that was creating his health issues. He
needed to make a change and find a
company where he would not be faced
with the same issues that were causing
him such a high level of stress. Despite
his incredible success in the past, and
fondness for his co-workers, he was
convinced a change in employer was
necessary. He needed to find a better
work-life balance.
“I contacted Hammerhouse and
specifically told them what I was looking
for and they heard me loud and clear.”
This is where the model-matching
process began. We identified what the
client was seeking: A national firm, not a
small banker; high values and morals
that were consistent with his own; a
company geared towards purchase business, a strong operations team, effective
marketing and flexibility.
After understanding the candidate’s
initial needs and wants, we moved forward with our objective consultation. We
explored the unique value propositions
of the companies that we initially
believed were well suited to what our
candidate had to offer. This process
allowed all parties to evaluate the existence of a model-match. In the case of
our top producer, we found a firm that
we believed presented a high-potential
match and shared the specifics of the
company’s attributes. Our candidate
liked what he heard and felt the company offered the work-life balance he was
seeking. Both parties determined they
wanted to move forward with an in-person meeting at the company headquarters. We prepared both parties by discussing, in detail, questions that needed
to be addressed in order to determine
the full impact of the model-match.
Our candidate’s meeting was a success and both parties determined they
could develop a mutually beneficial
relationship. Our candidate was
offered, and accepted, a position with
the new company. “When all was said
and done, I went with this company
because of their high values and
morals. I went with what my gut told
me.” Our client had successfully found
not only the work-life balance he had
been seeking, but also additional benefits that were also uncovered during
the discovery process.
Although he had never used a
recruiter before, our client says, “I
developed a relationship with
Who Has Access
to Your Borrower’s Data?
heard on the street
Consumer privacy and the protection
of personal consumer financial information
By Andrew Liput
50
The Consumer Financial Protection Bureau (CFPB) now has
rule-writing authority and enforcement authority over financial institutions, and this includes interpreting how various federal data privacy and protection statues will be
enforced in the mortgage industry. As a mortgage lender, bank, credit
union or broker shop you need to know what these statutes and rules
mean for your business.
The Gramm-Leach-Bliley Act (GLBA) requires financial-related institutions to safeguard sensitive data. Because you collect personal information
from customers, including names, addresses and phone numbers; bank
and credit card account numbers; income and credit histories; and Social
Security Numbers, the GLBA requires that you ensure the security and confidentiality of this type of information. As part of the implementation of
the GLBA, the Federal Trade Commission (FTC) issued the Safeguards Rule,
which requires financial institutions under FTC jurisdiction to have measures in place to keep customer information secure.
According to the Safeguards Rule, financial institutions must develop
a written information security plan that describes their program to protect
customer information. All programs must be appropriate to the financial
institution's size and complexity, the nature and scope of its activities,
and the sensitivity of the customer information at issue. Covered financial
institutions must identify and assess risks to customer information, design
a safeguards program, and detail the plans to monitor it; as well as select
appropriate service providers and require them (by contract) to implement
the safeguards
The Federal Fair Credit Reporting Act (FCRA) governs personal information included in consumer reports. The main “security” feature of FCRA is
that the law limits access to certain “permissible purposes,” such as credit,
employment, insurance underwriting and rental history. Many companies
covered by FCRA may also be “financial institutions” under GLBA.
Amendments were made to the FCRA by the Fair and Accurate Credit
Transactions Act of 2003 (FACTA). As a safeguard against identity theft,
FCRA and FACTA require any company with access to a consumer’s credit
information to manage its access, use and disposal to protect identity theft
and improper use.
In the end, data security rules under GLBA, CFPB, FCRA, FACTA, and
Dodd-Frank mandate that you know who has access to borrower information, and manage the risk of loss, theft and other harm that may occur.
Settlement agents (lawyers, escrow agents, title agents and even notaries)
routinely access (and sometimes retain for their records) data regarding a
borrower’s name, address, Social Security Number, bank account information, employment history, assets, income, all which are clearly visible on
the 1003 and HUD-1 at closing. Various other documents at the closing table
may reveal even more information, such as credit issues, family relationships (children’s names, divorce, separation, civil unions, etc.) Can you vouch
for the credibility of these individuals when it comes to such personally sensitive data? Better yet, if there is a breach or loss and a consumer is harmed,
will you be able to demonstrate that you took appropriate steps to vet these
people before you provided them such access?
Just in case you were wondering, the Closing Protection Letter (CPL)
does not cover you in the event that a settlement agent improperly accesses and uses a borrower’s personal information. However, independent
vetting and monitoring can provide the comfort factor you need to ensure
you are taking reasonable steps to meet data security and privacy rules.
Andrew Liput is president and CEO of Secure Settlements Inc., a company
he founded after nearly 10 years studying the problem of escrow and closing
fraud and the uninsured risks associated with mortgage closing professionals. He may be reached by e-mail at [email protected].
SPONSORED EDITORIAL
Re-Creating the
American Dream of
Homeownership
RIMARQ, a private capital market company, is looking to the concept of
online capital formation to give homeowners a better stake in the housing market. By “uniting homebuyers and homeowners with investors in a
marketplace for the trade of residential real estate equity,” the company aims
to bring measurable benefits to homebuyers, homeowners, investors, lenders
and brokers.
“We believe the current method of housing finance has created systemic
risk, and there is a need to rethink the level of debt being employed,” said PRIMARQ Founder and CEO Steve Cinelli. “Equity funds provided by investors,
which share both the upside and downside of property price movement and
complement homebuyers’ own contribution, create a more sustainable homeownership structure.”
The way the PRIMARQ five-step structure works:
P
1. A residential property for purchase or refinance is submitted to the PRIMARQ
exchange. PRIMARQ reviews the projected performance of the property using
third-party data, and assesses the mortgage level and credit quality of the
homebuyer. Assuming the criteria are met, the investment is posted as an offering to the investor side of the market.
2. Investors submit bids, designated as a “Q” position, to participate in the investment (1Q = $10,000 purchase equity holding). Investors then submit funds to
escrow upon acceptance of that bid.
3. Funds are present and financial contingencies associated with PRIMARQ are
met. Other elements of the home financing (buyer downpayment and loan) are
simultaneously coordinated, and the mortgage loan is approved based on
lower loan-to-value (LTV) and debt-to-income (DTI) ratios, due to the incremental investor equity.
4. Escrow and closing honors the current methodology and schedule and the
homeowner enjoys full occupancy and improvement rights.
5. Investors are seeking appreciation in the property and need not wait until the
property is sold or refinanced but may monetize positions through access to the
secondary market for Q trading.
“Lending at the current levels against a volatile and illiquid asset defies basic
credit principles,” said Cinelli. “We have learned that markets rise and fall, though
lenders continue to behave as though values will only move in one direction.
Lenders are not intended to take price risk, and them doing so precipitated today’s
housing bubble rubble.”
Only time will tell before new models of finance and capital formation, spearheaded by PRIMARQ, will excel in the volatile housing finance marketplace. But
until proven otherwise, PRIMARQ’s online private equity concept aspires to kickstart the American dream of homeownership into a new reality.
“Not only do we believe our approach brings prudence to the homeowner’s
financing, but we enable investors to participate in a new way in one of our
largest asset classes, passively, transparently and on an informed basis,” said
Cinelli.
heard on the street
mortgage pipeline and an audit trail for
better tracking through the lock process,”
said Matt Thoman, LoanLogics’ product
manager for Origination Technologies.
In
addition,
LoanLogics
has
enhanced the pricing form within
LoanDecisions to capture additional
loan scenario detail. A checkbox has
been added for the HomeStyle
Renovation Mortgage that allows a user
to view only HomeStyle pricing and eligibility results. Administrators can also
use this new loan scenario characteristic
to create custom adjusters, margins and
guideline rejects through LoanDecisions
Advanced Margins settings.
VirPack Relocates to
Accommodate Corporate
Growth
Mortgage Professionals
to Watch
W
We
e w ill b e rread
ead y.
y.
Yo
Yo u will b e read
r ead y,
y, t o o .
Count
Count on
on Calyx
Calyx
C
Compliant
ompliant • Efficient
Efficient • Reliable
Reliable • Affordable
Aff
ffo
ordable
51
F
or m
ore tthan
han 20 yyears,
ears,
For
more
tthe
he preferred
preffer
e red loan
loan
o
rigination p
origination
platform
latform
WIND
Your turn
HUDSON
National
Mortgage
Professional
Magazine invites its readers to submit
l Premier Nationwide Lending (PNL) has any information, events, passages,
named John H.P. Hudson as its new promotions, personal or professional
occurrences that seem appropriate
vice president of regulatory affairs.
and/or other pertinent data to the
attention of:
l Russ Warner has joined Affinity Lending
Solutions as senior vice president.
l DocMagic Inc. has announced that Lisa
Rose has joined the company as its
Heard on the Street/Mortgage
Professionals to Watch column
Phone #: (516) 409-5555
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the target issue.
800.362.2599
[email protected]
www.calyxsoftware.com
ww
w.calyxsoftware.com
l Erik Wind has returned to GeoData
Plus as the company’s president.
2014
Responding to
growth in its
customer
base for VirPack’s document management and eDelivery solutions, the
company has relocated its corporate
headquarters into a larger office space
in McLean, Va. The new office houses
VirPack’s recently expanded team and
includes space for a new training center, dedicated to customer training. In
the past year VirPack’s staff has grown
22 percent to support a significant
increase in its customer base.
“The steady growth of our organization, driven by the increased demand
for our industry leading paperless
solutions, has given us the opportunity
to expand our offices,” said Michael
Coar, president and CEO. “Our expanded space accommodates additional
VirPack team members while also providing additional capacity for future
growth, including the launch of our
customer training facility.”
newest investor compliance specialist.
l GSF Mortgage Corporation has added
long-time mortgage professional Mike
Morrison to the firm’s Raleigh, N.C.
branch.
l Equity Loans LLC announced the additions of David Carr as corporate processing manager and Teresa Ciccolella
as controller, and the promotion of
Alison Raymond to assistant vice president of operations.
l Susan Blackmore was named branch
manager of Mortgage Master’s new
retail branch location in Vienna, Va.
l 360 Mortgage Group has announced
the hiring of six new wholesale account
executives: Greg Ashcraft, Lael Fisz,
Jeff Hoge, Evelina Escalante-King,
John Knecht, and Mike Kuhn.
l Hammerhouse LLC has announced
that it has hired Jason Kutcher and
Eric Pennell as strategic growth partners, and Scott Hollo as junior
recruiter to support client growth
and expand the company’s national
mortgage sales recruiting infrastructure.
l Norcom Mortgage has announced the
grand opening of its new Fairfield,
Conn. branch, and Manny Gomes has
been named branch manager of the
new Fairfield branch.
l The Wholesale Lending Division of
Carrington Mortgage Services LLC
has announced the appointment of
industry veteran Rey Maninang to
senior vice president and national
sales director for the company’s
wholesale channel. Carrington
Holding Company LLC has also
announced
that
Christopher
Whalen, executive vice president
and managing director of Carrington
Investment Services, has been
named EVP of Carrington.
l NXTLoan | First American Mortgage
Trust has announced that Rob
Philion has joined the company as
the new director of sales/national
sales manager.
l Boston National Title Agency has
announced that Steve Megson has
joined the company as senior vice president, director of national sales.
False Hope
for Mortgage Bankers
in Appeals Court Win?
52
By Kimberly Priest
Johnson
These are heady times for
a vast majority of the
mortgage banking industry, following a recent federal appeals
court ruling that mortgage loan officers
shouldn’t be classified as hourly
employees.
The appellate victory for the
Mortgage Bankers Association (MBA)
essentially reversed a 2010 policy
change enacted by the U.S. Department
of Labor (DOL) to classify mortgage loan
officers as hourly employees.
The recent decision issued by the
U.S. Court of Appeals for the District of
Columbia Circuit came as welcome
news to most MBA members, who have
anxiously awaited the opportunity to
return to their longtime system of compensating loan officers based on the
number or volume of loans closed.
Many industry veterans also view the
ruling as insulation against liability
from loan officers’ claims under the
Fair Labor Standards Act (FLSA).
But a closer inspection of the court’s
decision
in
Mortgage
Bankers
Association v. Harris, No. 12-5246, is
required for those mortgage bankers
who believe now is the time to move
back into their pre-2010 business
model.
In fact, as you review the case, here
are three things you and your business
need to consider.
Plaintiffs’ lawyers
are still interested
The real impact of the 2010 DOL policy
change, which was issued under an
Administrative Interpretation, was to put
loan officers and the mortgage industry
on the radar of the nation’s plaintiffs’
lawyers. These resourceful attorneys are
unlikely to simply turn their attention
elsewhere and forget about the industry
and its practices. Indeed, the recent court
decision inevitably will draw attention to
some non-compliance matters that garnered little attention prior to 2010.
For example, historically, some mortgage lenders treated loan officers as
though a blanket administrative exemption was appropriate based simply on job
title. Others assessed the duties performed by the loan officers and accordingly classified them as exempt. Even
fewer assessed the compensation structure and ensured that the salary component of the exemption also was satisfied.
The legal reality is that the administrative exemption has a two-fold
requirement:
1. The duties prong; and
2. The minimum salary requirement.
Failure to satisfy both prongs still
requires that loan officers be paid at
least the federal minimum wage for all
hours worked and overtime pay equal
to time-and-a-half the regular rate of
pay for all hours worked beyond 40
hours a week.
The duties prong
To qualify for the administrative
exemption, a loan officer’s primary duty
must be:
1. The performance of office or nonmanual work directly related to the
management or general business
operations of the employer or the
employer’s customers.
2. Primary duties must include the
exercise of discretion and independent judgment with respect to matters of significance.
The regulations and the jurisprudence interpreting the FLSA have
attached particular meaning to “primary duty,” “directly related to the management or general business operations
of the employer,” and “exercise of discretion and independent judgment.”
For example, employers must conduct
a case-by-case assessment of a loan officer’s job duties to determine whether the
administrative exemption applies. Job
titles do not determine exempt status.
When employers conduct the individualized inquiry, some loan officers may very
well fail to satisfy the duties prong of the
administrative exemption test.
The salary requirement
Administratively exempt loan officers
also must be guaranteed and paid at
least $455 every week ($23,600 per
year) on a “salary basis.”
Obviously, this guaranteed salary
amount need not be the entire compensation received, and loan officers
can be paid on a commission basis
above and beyond the weekly salary,
but the $455 weekly “guaranteed minimum” must be paid for any work week
during which an employee performs
work, regardless of the quality or quantity of the work, the number of days or
hours worked, and whether the
employer actually has work for the
employee to complete. One exception
would be if an employee performs no
work at all during a particular workweek, but the permissible deductions
from the guaranteed minimum are few
and far between.
So, as the mortgage industry continues to rejoice—indeed, the appeals
court has foreclosed the DOL’s authority to make such abrupt upheavals in
the law such as the 2010 Administrative
Interpretation—and employers venture
to retrace their steps on roads once
traveled, they should proceed with caution with eyes opened wide for the legal
traps that will snag the unwary.
Kimberly Priest Johnson is founder of
Dallas-based Priest Johnson PLLC. Priest
Johnson and her firm regularly represent
companies and individuals in the mortgage industry in courtroom litigation,
regulatory compliance matters, Fair
Labor Standards Act claims, and other
industry issues. She may be reached by
phone at (214) 720-4006 or e-mail
[email protected].
fully explored by a mortgage broker
before a decision is made to enter a
lender’s “Mini-Correspondent Channel.”
It is certainly not akin to brokering
loans by another, different name.
Brokers considering this option need
to know exactly what they are getting
into before they go down this road.
Mini-correspondents
and the CFPB
Conclusion
We have provided highlights of many
issues a broker must consider when
evaluating whether to become a minicorrespondent, a branch of a lender
or remain a broker. There are a variety of opinions on this issue floating
around the mortgage industry. This is
certainly not a ‘one-size-fits-all’ scenario. While the individual decision
on which way to go hinges on a variety of factors subjective to the specific
broker, there is one overriding objective theme which pertains to all brokers: You must do your homework
and leave no stone unturned when
making this decision.
To the mortgage broker contemplating becoming a mini-correspondent, we say this: Do your due diligence, investigate the requirements of
the states where you do business,
investigate the lenders and their
motives when persuading you to
become a mini-correspondent, but
also know everything about a lender
before you become its branch. A rash
decision will likely lead to regrets and,
given everything the mortgage industry has faced the last few years, regretting and unwinding a decision to
become a mini-correspondent or
branch is not something you want to
add to the “headache pile.”
If you take one thing from this article let it be the realization that this is
a time when all mortgage brokers
should evaluate their business plans,
AGENDA
Thursday, October 17, 2013
NAMB/ NMLS Approved Education will be provided from 8:30
am to 5:00 pm with Reception to follow. Tradeshow will be open
the whole time. Check out the website www.iaamb.net to sign
up for the education.
53
Convention set up:
Breakfast will be served from 8:00 to 9:00
Exhibitors set up by 9:00 am on October 17
Education for those attending will be from 8:30 to 11:30
Lunch from 11:30 to 12:15 (Tradeshow open)
Exhibitor Showcase talks from 12:15 to 12:45
Education from 12:45 to 5:00
5:00 to 6:30 tradeshow open/ Reception and Association update
Food and Drink will be provided
Member Exhibitor Costs: FREE WITH MEMBERSHIP
Advertising on the flyers; booth table; meet and greet all day long; speaking
at the lunch; food and drink provided
Lender Non-Member Exhibitor Costs:
$275 advertising on the flyers; table for all-day event; food and drink
provided
Industry Non-Member Exhibitor Costs:
This is for anyone that in a housing related business; home inspector,
handyman, carpet cleaning, air duct cleaning, heating and cooling industries, roofing, siding, etc.
$50 advertising on the flyers; table for all-day event; food and drink provided
Add Membership for additional $ 200
Registration DEADLINE: October 9th, 2013
Register Online at: www.iaamb.net
4949 Weston Parkway Ste 165-111, West Des Moines, IA 50266
www.iaamb.net
E-mail: [email protected] Phone: 800-462-0077 Fax: 866-931-7542
l A branch can obtain the support
needed to get the training and
education required by the CFPB. It
comes as no surprise that brokers
have had trouble keeping up with
the training requirements. Relying
upon a lender for this need would
eliminate this burden to a broker.
l A branch would certainly obtain
better support in the underwriting
department which would turn into
quicker approvals. The underwriting of broker and correspondent
lender files often sit behind files
from the lender’s loan officers.
Quick approvals lead to happy borrowers and happy borrowers lead
to referrals.
l A branch would usually have far
greater compliance support than a
broker. Like training and education, brokers have struggled to
keep up with all of the compliance
requirements imposed upon them
in recent years. Brokers obtain
assistance with this key aspect of
mortgage lending when they
become a branch as they have the
lender’s compliance department or
compliance officer as a direct
resource.
l A branch would have far more
enhanced technology and software
programs available to it as a
branch than it did as a broker.
There are countless software programs to assist mortgage loan originators and a broker usually does
not have the financial wherewithal
to make use of all the software necessary to make their lives earlier.
This often changes when a broker
becomes a branch.
Before concluding please consider
these final points.
Has anyone given consideration as
to what the CFPB might take as a position when a tremendous amount of
mortgage brokers transform themselves into mini-correspondents with
the primary purpose of avoiding QM’s
three percent points and fees cap? We
surely have, and so have many others.
The CFPB has not commented on this
issue, but you bet they will at some
point down the road.
It is possible that the CFPB will
take no issue with mortgage brokers
becoming mini-correspondents! After
all, this has been done for years, and
when done correctly, it has been a
valuable intermediary step for a brokerage firm that wishes to transition
from broker to lender.
But would it shock anyone if the
CFPB took issue with the mini-correspondent channel and tried to eliminate it to the extent it is used to avoid
the three percent points and fees cap?
This would not be difficult. The CFPB
could modify the exception to loan
originators of the entity that makes
the credit decision or take any number of other actions to prevent the
mini-correspondent channel from
growing solely for the benefit of
avoiding the three percent cap. For
now, we have to wait and see what
their position on mini-correspondents will be.
Lastly, there is another option for a
mortgage broker whose business
model is disrupted by the three percent point and fees cap under QM.
Such a broker can find a lender whom
it trusts and has had a relationship in
the past, seeking to become a branch
of this lender. Many brokers have
found that starting a branch is a beneficial decision to their business.
Some well-known benefits of a broker
becoming a branch of a lender are as
follows:
“… the goal of continuing education is uniform throughout the
country: Equip mortgage loan originators with the necessary
information to most effectively and efficiently provide
mortgage services.”
Continuing Education Requirements
More than compliance … a path to success
By Barbara Scalera
54
There is one school of thought that says
continuing education requirements are
here and mortgage originators have to
live with it. There’s another that says the
regulation and oversight are too much,
and it’s time to leave the industry. And
finally, there’s the school of thought that
says mandatory education is not only
necessary, it’s great for the industry and
should be embraced. Considering where
the mortgage industry has been, this last
option seems the best by far.
The number of hours vary, depending
on the state, but the goal of continuing
education is uniform throughout the
country: Equip mortgage loan originators
with the necessary information to most
effectively and efficiently provide mortgage services. The time spent in class will
help eliminate problems and issues
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throughout the year.
There’s no doubt that some mortgage
originators view continuing education as
a necessary evil. They are the same ones
who will be cramming at the end of the
year to squeeze in their continuing education classes, like cars lined up at a
motor vehicle inspection station on the
last day of the month.
This “compliance” mentality toward continuing education is great news for the portion of mortgage originators who view yearly coursework as a way to improve themselves and separate themselves from the
competition. Remember the industry pre2008, when just about anyone could hang a
shingle and claim they were mortgage loan
officers? Recall how difficult that made it for
the experienced MLOs who actually had
expertise and training, knew the ins and
outs, and could expertly guide a new homebuyer through the maze of the mortgage
process. The real estate bubble and the new
licensing requirements effectively took care
of those who were less professional, leaving
a leaner and smarter group of mortgage
professionals to improve the industry’s reputation, loan by loan.
The annual continuing education
requirements may have the same effect
on the unmotivated, and sometimes
incompetent, loan originators and they
may drop out of the industry because of
the hassle. And as previously noted, there
are some originators who will take the
courses, but do so begrudgingly, and not
really become a more professional MLO
because of the additional education.
Continuing
education benefits
Mortgage loan officers may think they
have heard or seen just about every scenario, but the truth is that, number one,
they haven’t; and number two, the mortgage industry is in a state of flux as the
rules and regulations are constantly changing based on the events of 2008-2009.
When faced with a unique situation, asking
a colleague, company executive or a compliance officer is better than providing an
educated guess, but not as good as knowing the answer yourself. Prospects and customers are typically impressed when you
are educated, confident and can answer
the tough questions.
Even with continuing education, it’s
not unusual for mortgage loan originators
to have questions, especially if they’ve
heard or read conflicting information. The
mandatory continuing education courses
are a great venue to have these questions
answered, even if the course work doesn’t
address them directly. Most expert
instructors can provide their perspective
at any time during class.
Additionally, a proactive approach to
continuing education results in:
l Better comprehension of federal and
state laws
l Better understanding of the rules
and regulations still being formulated, and the compliance issues associated with specific loans
l Better understanding of the government agencies tasked with making
and implementing these rules
l Increased chance that clients and
prospects will view you has a true
expert in the industry, and therefore,
confidently refer you to others
It’s important to note that potential
customers are coming in more educated
than in the past. There is an abundance
of personal finance and mortgage-related information available on the Web
which allows these prospects to know
more about the mortgage process and
ask more informed questions.
What to look for in
a continuing education
program
From the outside, schools that offer
continuing education courses can look
very similar. They are all approved
through the National Mortgage
Licensing System (NMLS) after all. But
there are key factors to consider:
l Are the instructors working in the
industry? Look for instructors who
work within the industry and are not
just “book-trained” in mortgage issues.
Because they work in the mortgage and
real estate industries every day, these
instructors are able to integrate instruction on the new rules with practical
applications and examples from their
real world experience. Just as impor-
tantly, they can explain how changes in
rules and regulations translate into the
day to day work and mortgage origination process.
l Does the continuing education
facility travel? Some continuing education facilities can mobilize their
coursework, and travel to either a
mortgage firm’s office or a nearby
hotel or conference center to make it
more convenient for the loan officers
to attend. Because licensing is relatively new, and getting approved to offer
coursework is an arduous process, the
number of approved course providers
can be geographically limited. In New
Jersey, for instance, there are less than
10 facilities throughout the state.
l Do they offer courses in multiple
states out of their facility? In many
areas, such as the greater New York
metropolitan area, it’s not unusual for
referral business to come from another
state. It’s important for many loan officers to be licensed in multiple states–
and much easier for them to keep up
with continuing education if they can
do so in one primary facility.
l Are courses offered online as well
as live? Once frowned upon in the
education field, online and Webinarbased courses are now an everyday
part of many educational systems.
It’s not for everyone, but it’s good to
know that your provider can deliver
courses in a variety of formats.
Hot continuing
education topics
There is no shortage of new topics and
updates to be addressed. Some could even
argue that the current mandated federal
and state continuing education hours are
not enough. Here are some of the topics
being addressed by the latest coursework
l Federal laws, including the Dodd-Frank
Act, anti-discrimination, Truth-inLending-Act (TILA), and Real Estate
Settlement and Procedures Act (RESPA)
l Terms and conditions of Qualified
Mortgages (QMs) as determined by
the Consumer Financial Protection
Bureau (CFPB)
l Requirements
of
the
Home
Ownership and Equity Protection Act
(HOEPA) amendments TILA that
require a creditor to verify and document a borrower’s ability-to-repay a
home mortgage loan
l RESPA and the updated foreclosure
requirements of RESPA amendments.
l Differentiating between loan-tovalue and loan-to-cost
l State-specific rules, regulations and programs (such as differentiating between
civil and criminal usury in New York,
and identifying the Housing Purchase
and the Owner-occupied Residential
Mortgage Programs in Pennsylvania)
Conclusion
To say the least, the mortgage industry has
had many changes since 2008. Even if continuing education wasn’t mandatory, it
would be highly recommended. It’s a nobrainer when considering the factors that
separate the best MLOs from the rest.
Primary factors are motivation; knowledge/expertise and experience. It’s impossible to teach motivation or to create experience overnight. That leaves knowledge/expertise as the only factor that differentiates MLOs in the short term. How do
they improve their knowledge and expertise?
Two words … Continuing education.
Barbara Scalera is the licensing and compliance officer for Residential Home
Funding, a licensed mortgage banker in
the mid-Atlantic Region, headquartered
in White Plains, N.Y., with corporate
offices in Parsippany, N.J. She may be
reached by phone at (973) 577-7008, ext
245 or e-mail [email protected].
55
“By looking at the CFPB Supervision and Exam Manual,
we can find clues to what they are looking for in their
exams.”
A Game of Clue: What is Considered
“Required” Training by the CFPB?
By Ginger Bell
56
Remember the game of Clue? Through
deductive reasoning, players must figure
out which character, weapon and location are in the secret file. To do this, players must uncover what cards are in other
players’ hands by making more and more
accusations. Once a player knows what
cards the other players are holding, they
will know what cards are in the secret file.
It’s a great game for those who enjoy reasoning and thinking things out.
Determining what compliance training a company must provide to their
staff these days is much like playing the
game of Clue. You are provided with the
game board to play on by the Consumer
Financial Protection Bureau (CFPB), the
CFPB Supervision and Examination
Manual. From the Exam Manual, we
must read through the various sections
to find clues to determine exactly what
compliance training should be included
in a company’s compliance management system the CFPB expects companies to have in place.
Gone are the days where a company
can leave training up to the individual
loan originator to complete on an annual basis. It is not enough for a company
to merely require NMLS continuing education for their originators. Now, a company must look for and provide compliance training for their entire staff,
including training for compliance professionals, managers, processors, originators, underwriters, closers, funders,
pre-purchase reviewers, etc.
the Exam Manual for the word “training.” More than 120 times, the word
“training” is noted in the CFPB
Supervision and Examination Manual,
yet you will not find a single list of
what training is specifically required
for a company to have in place. This
leaves many companies wondering,
“What training am I required to provide to my staff?” There is no magical
list that exists to tell companies what
training they should be providing to
their staff. The CFPB expects that, as a
company, you are providing compliance training to the appropriate personnel based upon their job function.
This means that you are providing
training on the federal consumer
financial laws which are related to the
job that they perform.
Clue number two:
Details of examination
procedures
The
CFPB
Supervision
and
Examination Manual, details what the
CFPB is reviewing in a company’s
training program in Part III of their
We find our first clue when we search examination procedures. This is the
Clue number one:
The importance of
training to the CFPB
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portion of the exam where the examiners will provide comments regarding
what they have reviewed during the
exam. This is a great place to start
when developing your company’s
compliance management system and
also a good clue as to what your company should be developing for your
training program. It also tells us how
important training is to the CFPB
because it is listed as part three out of
six parts that they provide in their
compliance management review.
Table 1—CFPB
Supervision and
Examination Guide—
Page 891
III. Examination Procedures—
Training
To evaluate the quality of the entity’s compliance training program,
examiners should:
1. Request and review the schedule, record of completion, and
materials for recent compliance
training of board members and
executive officers.
2. Determine the involvement of
compliance officer(s) in selecting, reviewing, or delivering
training content.
3. Request and review policies,
standards,
schedules,
and
records of completion for compliance-specific training of compliance professionals, managers,
and staff, and documents
demonstrating that service
providers who have consumer
contact or compliance responsibilities
are
appropriately
trained.
4. Request and review samples of
the content of training materials
and
comprehension
tests,
including training related to fair
lending, new regulatory requirements, new products or channels of distribution, and marketing (including scripts).
5. Request and review training
developed as a result of management commitments to address
Although the CFPB does not provide us
with a written list of what training they
want to see in a company’s training program, we can look to the examination
objectives they provide for clues regarding what they are looking for.
Table 3—CFPB
Supervision and
Examination Objectives—
Page 40
Training—Examination Objectives
Education of an entity’s board of
directors, management, and staff is
essential to maintaining an effective
compliance program. Board members should receive sufficient information to enable them to understand the entity’s responsibilities
and the commensurate resource
requirements. Management and
staff should receive specific, comprehensive training that reinforces and
helps implement written policies
and procedures. Requirements for
compliance with Federal consumer
financial laws, including prohibitions against unlawful discrimination and unfair, deceptive, and abusive acts and practices, should be
incorporated into training for all relevant officers and employees,
including
audit
personnel.
Examiners should seek to determine
whether:
1. Compliance training is current,
complete, directed to appropriate
individuals based on their roles,
effective, and commensurate
with the size of the entity and
nature and risks to consumers
presented by its activities.
2. Training is consistent with policies and procedures and
designed to reinforce those policies and procedures.
3. Compliance professionals have
access to training that is necessary
to administer a compliance program that is appropriate for that
supervised entity and its business
strategy and operations.
Let’s look for the first clue …
“Board members should receive sufficient
information to enable them to understand
the entity’s responsibilities and the com-
mensurate resource requirements.”
This means that all individuals who are
in an ownership position or executive
level receive to help them make the
decisions they need to make for the
company. Even if you are an individual
broker owner you need to complete
compliance training to help you effectively manage the regulatory requirements of your business.
Let’s look for the second clue …
“Management and staff should receive
specific, comprehensive training that
reinforces and helps implement written
policies and procedures.”
This means that everyone in a company, from the managers to the processors
complete training that reinforces the
policies and procedures a company has
in place. So, if you have a policy in place
for how you handle consumer com-
plaints then you should be providing
training that reinforces that policy and
if there are any problems which arise or
changes you need to make to your consumer complaint policy that you must
provide updated training to your staff
to make sure they know and understand the changes.
Let’s look for the third clue …
“Requirements for compliance with
Federal consumer financial laws, including prohibitions against unlawful discrimination and unfair, deceptive, and
abusive acts and practices, should be
incorporated into training for all relevant officers and employees, including
audit personnel.”
This means that you; as a company,
should be training your staff on all of
57
Table 2—CFPB
Supervision and
Page 892
Conclusion—Training
Draw preliminary conclusions
about the strength, adequacy, or
weakness of the compliance training program. Consider whether:
a. Compliance training is current,
complete, directed to appropriate individuals based on their
roles;
b. Training is effective, and commensurate with the size of the
entity and nature and risks to
consumers presented by its
activities;
c. Training is consistent with policies and procedures and
designed to reinforce those policies and procedures; and
d. Compliance professionals have
access to training that is necessary to administer a compliance
program. Confirm the preliminary conclusions through a riskfocused review of the compliance training program.
Clue Number Three—
Examination Objectives
monitoring, audit, or examination findings and recommendations or issues raised in consumer complaints and inquiries.
6. Determine whether the program
is designed to provide training
about the specific regulatory
requirements relevant to the
functions of particular positions
for loan officers, such as the
Truth-in-Lending Act (TILA) and
the Equal Credit Opportunity Act
(ECOA).
7. Review records of follow-up,
escalation, and enforcement for
units with training completion
rates that do not meet the
supervised entity’s standards or
deadlines.
8. Request and review the supervised entity’s plans for additions,
deletions, or modifications to
compliance training over the
next 12 months and any plans
for changes to the overall training resources and compare actual training activities to prior
plans.
a game of clue
the federal consumer financial laws,
including Fair Lending, Fair Housing,
ECOA, UDAAP, MAPs, SAFE Act, TILA,
RESPA, GLBA, HMDA, etc. which relates
to the job they perform.
Want the full list of required training? Sorry, it doesn’t exist. However; if
we move on to Clue Number Four, we
can get a better idea of what that training that list may include.
Clue number four:
CFPB Consumer Financial
Protection regulations
If we look to the list of consumer financial protection regulations on the CFPB
website we can get a better idea of
what they are looking for in a training
program. These are all of the regula-
tions which the CFPB refers to in their
Supervision and Exam Manual and
what they expect; along with your policies, procedures and processes that you
train your staff on.
Table 4—CFPB Consumer
Financial Protection
Regulations
Regulation B: Equal Credit
Opportunity
Regulation C: Home Mortgage
Disclosure
Regulation D: Alternative
Mortgage Parity Act
Regulation E: Electronic Fund
Transfers
Regulation F: Fair Debt Collection
Practices Act
Regulation G: SAFE Mortgage
Licensing Act—Federal
Registration of Residential
Mortgage Loan Originators
Regulation H: SAFE Mortgage
Licensing Act—State Compliance
and Bureau Registration System
Regulation I: Disclosure
Requirements for Depository
Institutions Lacking Federal
Deposit Insurance
Regulation J: Land Registration
Regulation K: Purchasers’
Revocation Rights, Sales Practices
and Standards
Regulation L: Special Rules of
Practice
Regulation M: Consumer Leasing
Regulation N: Mortgage Acts and
Practices—Advertising
Regulation O: Mortgage
Assistance Relief Services
Regulation P: Privacy of
Consumer Financial Information
Regulation V: Fair Credit
Reporting
Regulation X: Real Estate
Settlement Procedures Act
Regulation Z: Truth-in-Lending
Regulation DD: Truth-in-Savings
Other regulations
l Disclosure of records and
information
l Rules Implementing Equal
Access to Justice Act
l Enforcement of
Nondiscrimination on the Basis
of Disability in Programs and
Activities Conducted by the
58
W
Markets may be volatile, but there’s one thing you can always count on, the total
commitment of our Mor tgage Team. Loyalty, continuity of ser vice and our dedication to
protecting the integrity of our relationships are just a few of the things that set us apar t.
Ridgewood understands the needs of its communities :.3?5)!?#:)!:3
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www.ridgewoodbank.com
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db k
dbank.com
Member FDIC
Bureau of Consumer Financial
Protection
l Procedure Relating to
Rulemaking
l Rules Relating to Investigations
l Rules of Practice for
Adjudication Proceedings
l State Official Notification Rules
l Defining Larger Participants of
Certain Consumer Financial
Product and Service Markets
Winning the game of Clue
(NAPMW) for her commitment to training
and education. She may be reached by
phone at (503) 318-6152 or e-mail [email protected].
59
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Table 5—2013 CFPB
Dodd-Frank Mortgage
Rules Readiness Guide—
Page 15
Training
1. Have you determined what
training needs to be developed?
Ginger Bell, a renowned education specialist in the mortgage industry, is the
best-selling author of Cracking the
Success Code, a book she co-authored
with Brian Tracy and other business
owners. Ginger was recently named
national compliance training director
for C3Compliance Consultants, a division of Offit Kurman Attorneys at Law,
one of the top law firms in the mid-
Atlantic region. In 2011, Ginger was
awarded the “Professional Woman of
the Year” Award by the National
Association of Professional Women
The player who eliminates all false
possibilities the fastest during the
game of Clue is most likely to win the
game in the end. However; any turn
not used to make a suggestion is
essentially a wasted turn. So it is
important to always look for clues
and make suggestions. Same goes for
your company’s training program. By
looking at the CFPB Supervision and
Exam Manual, we can find clues to
what they are looking for in their
exams. Look to the industry for articles, experts, conferences, Webinars
and training for suggestions as to
what others are doing and then find
a good resource or solution that fits
your business model.
Follow the suggestions below
when developing your training program. Think this is something new?
No. Guess where it came from? Want
a clue? It came from the CFPB Web
site in their 2013 CFPB Dodd-Frank
Mortgage Rules Readiness Guide on
page 15. Why is this important?
Because the CFPB expects you to
train your staff on all of the new
regulatory changes that are happening in January 2014. Yes, another
clue. The CFPB Web site is full of
great information and clues to help
you become and stay compliant. It
is just a matter of reading through
the information, looking for clues
and making sure you are implementing the right training for your
company.
2. Have you determined who needs
training?
3. Have you considered the following questions in developing
training:
l What information will be covered in the new training?
l What will the format be for
training? (Instructor-led,
online, etc.)
l How will training vary based
on job duties?
l How do you document completed training?
l What are the consequences
for employees not completing training by the assigned
deadline?
l Have the changes to the
training program been fully
integrated into your full
training program and ongoing schedule?
4. How will you roll out the changes
to your training program?
l When will training be completed?
l Do training timelines allow for
enough time for staff to fully
understand rule requirements
prior to the effective dates?
l Have you done any testing of
training program changes?
5. Who is responsible for developing course content?
l Did you purchase content from
an outside vendor?
l How is senior management
involved in developing and
approving course content?
l How did you determine that
course content is adequate?
l What is the process for identifying the need for additional
changes?
6. Have you determined what
training will be needed to
address operational changes?
l What areas are impacted by
the changes?
“…why do mortgage broker loan originators have to take
the SAFE test, but not bank loan officers?”
Better SAFE Than Sorry
By Eric Weinstein
60
If you read my article last month, “Go
Dinosaurs !” you will know that I recently
left a commercial bank to go back into
the mortgage broker world. If you haven’t
read it, go read it now (see page 40 of the
August 2013 issue of National Mortgage
Professional Magazine). I will wait here.
Besides the low pay, the one thing that
struck me while working at the bank was
the crappy quality of the loan officers. I
guess if they were higher quality, could get
depository regulated by OCC, OTS, FDIC,
FRB and NCUA or the Farm Credit
Administration, you are not required to
take the SAFE MLO Test. As a registrant
you are eligible to take the SAFE MLO Test.
So riddle me this Batman … say you
are a legislator, and you want to make
sure the public is getting the most professional, trustworthy and smartest loan
officer there is to protect the public …
why do mortgage broker loan originators
have to take the SAFE test, but not bank
Question: If I work for a commercial loan officers? If both are dealing with the
bank, do I need to take the SAFE public in the same capacity, why is one
treated differently from the other?
MLO Test?
Let me give it to you in a nutshell. The
Answer: If you work for an insured
banking lobby is bigger than the nonexistent mortgage broker lobby. Big business wins over the mom and pop shop. It
is totally unfair, but there it is.
I took my SAFE test about two years
ago while working at the bank. I was
happy at the bank at that time. I did not
need to take the test, but it gives you a
leg up if they treat you badly and you
want to jump ship one day. Most bank
loan officers don’t do that, and guess
what … when they do decide to leave,
they have a longer ramping up period if
they decide not to go to another bank.
For the cost of a SAFE class and test, it is
good to have “options,” if you know
what I mean.
As I said before, “I am a Dinosaur.” I
have been a mortgage broker for over
20 years. I started in Virginia. That was
before you needed to be licensed,
unless you owned the place. That was
before you needed to take a test. That
was before you needed to take a class.
Basically, if you could find someone to
hire you, you could have been a hobo
on the street just before becoming a
loan officer. Back then, I knew some
loan officers that were.
I am currently licensed as a mortgage
loan officer in Virginia, Maryland and
the District of Columbia. I just completed this year’s continuing education (CE.)
I literally took the class lying in my bed
in my underwear. Just a few years ago,
if I tried that in a CE classroom, I would
probably have been arrested. CE classes
have come a long way.
Back when I owned Carteret
their own leads, didn’t have credit problems or a spotty license record, they would
be mortgage brokers. I think some of them
were just too scared to take the SAFE test.
This is from the online FAQ of the
NMLS Resource Center:
Mortgage, I had to fly from state to state
taking my CE classes and state tests.
Now, all the classes are online and my
local testing facility covers most states.
It’s like living with The Jetsons. One
class even required I get a camera for
my computer so they could watch me
to make sure I was not dozing in class.
Okay, that class I had to get dressed
from the waist up.
One question I get is, “Do I market
and leverage my education and/or professional industry certifications and
designations to consumers.” LOL. Get
real. Do you think borrowers have the
slightest clue on what it takes to be a
loan officer? No, they would sell their
grandmother for an 1/8 percent lower
rate. Still, it is up to us, for our own
benefit, to be the most knowledgeable
salesman for our product. The more
you know, the more you make. I would
take the classes even if they were not
required. Consumers go with the
smartest guy and the one they know
can help them. Of course, having the
lowest rates also helps a bit.
Speaking as a Dinosaur who has seen
it all, I am very happy with the SAFE
test. I think it should be required of all
loan officers (even bank loan officers),
There is no doubt; it keeps out the riff
and the raff that were previously in the
industry during the last financial boom.
It creates baseline knowledge, and may
I say a level of intelligence that hereto
was not in the industry.
This is one loan officer’s opinion. If
you want me, I will be in bed in my
underwear.
Eric Weinstein worked in banking, on the
commercial real estate side until 1991,
when he fell in love with residential lending. In 1995, he started a small mortgage
company in his basement called Carteret
Mortgage Corporation, which in 2003,
grew to one of the largest mortgage broker companies in the United States.
These days, Eric is semi-retired, doing
mortgages by referral only. As he likes to
put it, “He is either saving people money
per month or helping them buy a new
home. What a great job!” He may be
reached by phone at (703) 505-8692 or
“While it can be a grueling 20 hours that is usually done
over a period of two days, the information you take away
from a live classroom setting is superior to any other
format offered.”
Live Classes vs. Self-Paced Courses:
The Choice is Yours
By Jayne Combs
Jayne Combs is a mortgage loan officer
with First California Mortgage. She may
be reached by phone at (661) 965-0088
or e-mail [email protected].
calendar of events
N A T I O N A L
M O R T G A G E
see page 75
61
comes to learning, limits distractions
and helps you to form a solid foundation when preparing for your exam.
For continuing education (CE) classes,
there is a little more flexibility when it
comes to which teaching platform is the
best. While I am still a firm believer that
a live classroom is the best option, a live
Webinar comes in at a close second. In
the classroom setting, you are sitting
with other seasoned loan originators
who share similar day-to-day experiences, can hold discussions of various
interconnected topics and run through
specific scenarios based on the information being presented. In some cases,
they have found out that they were actually out of compliance and had it not
been for the open forum, they might
have continued to expose themselves to
possible fines and/or jail time and the
possibility of losing their license.
However, if you are unable to attend
a live classroom setting, then my next
recommendation would be a live
Webinar. With a good instructor who
engages the group, a live Webinar class
runs a close second to the live classroom setting. It still gives you the ability to ask questions and run scenarios by
the instructor. The downside to a
Webinar is that while you have some
interaction with the instructor, you lose
the discussions that typically take place
in live classes between other attendees.
Now, there are those of you out
there, and you know who you are, who
don’t want to have to sit still that long
and think the online self-paced course
is the way to go. To some it may be, but
for the majority, I would say no. I’m not
going to lie, the material isn’t the novel
you just can’t put down. People tend to
skim through it so they can go and pass
the test and get it over with. But you’re
really only harming yourself because
you are not retaining or learning much.
a live Webinar, and then lastly, the
online self-paced course.
Whether you are looking to obtain or
renew your Nationwide Mortgage
Licensing System & Registry (NMLS)
license, you will need to choose which
teaching platforms to use. Will it be the
live classroom setting, live Webinar, or
the online self-paced format? As a
Mortgage Loan Officer (MLO) and NMLS
instructor, I have both the personal
experience and student feedback with
respect to these various platforms
which I’m going to share with you.
I will begin with the pre-education
(PE) classes. In most cases, people taking the PE course are either new or getting back into the business and are
looking to get licensed. The information can be overwhelming if you are
trying to learn it on your own via a
Webinar or online self-paced course. I
have heard this from many students
that end up taking one of my classes
after attempting to take one of the
other platforms. They have all said it
was a lot of information to absorb and
was overwhelming. They also found it
hard to remain focused. The students
felt the live class helped them to retain
the material better, a forum to ask
questions freely, and also enjoyed the
group discussions.
As an instructor in a live classroom
setting, I’m able to tell if someone is
struggling with the material which
allows me to further expand on the
topic at hand. Whereas, the other platforms are either limited or don’t offer
this at all. In my opinion, it would be
worth your time and effort to find a live
classroom format even if it means traveling to a remote location. While it can
be a grueling 20 hours that is usually
done over a period of two days, the
information you take away from a live
classroom setting is superior to any
other format offered. The live classroom setting is your best bet when it
This could jeopardize your license if you
are not aware of all the laws. But for
those of you that find this the only way
and it works, then great!
In conclusion, my recommendation
is always the live classroom setting
whenever you get a chance, followed by
“The importance of employee training under the new
regulations cannot be underestimated. It is not enough to
recite the new rules and applicable procedures.”
Design and Align Compliance Education
By Alice Alvey
In January of 2014, the tidal waves of
regulatory change will hit the shores of
the mortgage business, rocking all
boats from the cruisers to the ships. It
was long-predicted and is still a surprise. When the new rules and procedures were announced, they shocked
the institutions but most especially the
people. Adapting to the regulatory
changes requires discipline and process
in compliance education—the discipline to understand rapidly evolving
and novel business regulations as well
as the process of embedding new written procedures into an efficient mortgage compliance education.
Perhaps, the creation of the Federal
Housing Administration (FHA) and
Fannie Mae in the 1930s saw such a
challenge but otherwise there are few
62
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other analogous periods of operational
change in mortgages. Many will remember the underwriting shift after the subprime collapse. Underwriting standards
like the Automated Underwriting
Systems (AUS) were able to tighten the
criteria for loan approval in origination.
The AUS provided a test with which a
lender who had properly maintained
mortgage data could expect some level
of confidence that the loan met basic
regulatory criteria.
Not too long afterward the Real
Estate Settlement Procedures Act
(RESPA) was added. The Good Faith
Estimate (GFE) form, for example, provided basic information about the
terms of a mortgage loan and estimates
of the costs. It was implemented incrementally and allowed loan level cures
to resolve mistakes found at closing.
The loan remained saleable to the
Agencies. Both the sub-prime and
RESPA changes pale in comparison to
the impact of these new regulations.
Those operational changes occurred
separately and over reasonable implementation time lines.
But the 2014 regulations are novel in
another way. They shift the burden of
proof with new underwriting standards
to determine the borrower’s ability-torepay. The determination will be left
solely up to the lender. This intent,
while dramatic, has been made perfectly clear by Fannie Mae and Freddie Mac
in recent announcements. The new
rules change the process and the liability. It simultaneously creates new paths
of litigation and repurchases risks that
last the life of the loan. The amount of
change is compounded. Don’t forget
the added fines and penalties under the
Truth-in-Lending Act (TILA).
It all comes down
to the person
The importance of employee training
under the new regulations cannot be
underestimated. It is not enough to
recite the new rules and applicable procedures. An employee training plan
must be designed and aligned with the
written procedures, from application
through delivery and quality control, in
order to ensure everyone on the front
lines knows, understands, and implements the procedures. This protects the
company and the employee.
The “how to’s”
Where do we start? Let’s assume we
have a good loan origination system
(LOS) and have worked with a technology provider to understand how the system will identify all of the new TILA and
Qualified Mortgage (QM) requirements.
The next step is to identify the gaps
between a lawyer’s interpretation of
the regulations, the LOS, and your company’s current processes.
Once a firm develops a manual or
alternate process to fill the gap between
the old and new regulations, changes to
the procedures need to be written. This
sounds simple but it takes a lot of time
to get it in writing. Regulators have been
clear that procedures must match what
is actually taking place, which means,
for example, that the new TILA procedures must be completed before any
training can begin. Unfortunately, that’s
not the typical mortgage banker’s way of
implementation.
Generations of mortgage bankers
have taken FHA loan applications long
before they ever went to the training
class. Processors everywhere got their
start submitting a loan to an automated
underwriting system wondering what
happens next. Good Faith Estimates,
which were out of compliance in the first
part of 2010, provide an example not to
be emulated. You get the picture.
Get a good plan
The right training plan will help ensure
that your first loans of 2014 are in compliance and there is no doubt that good
content is the place to start next year.
Courses offered by third party providers
will be a valuable time saver to get the
foundation set, but customized training
needs to be added to every program and
every position. The customized course
design includes content teaching the
written procedures. When this is done,
the procedure document itself should be
referenced whenever possible in the
training. It is an invaluable asset and
visuals taken from it should be prominently displayed throughout the course.
A general course covering the ability
to repay requirements will be especially useful to underwriters. After the general rules, the next level of training
needs to pull the federal requirements
together with various company specific
items such as non-QM products and
how QM loans are identified and
marked in the LOS. Quality control (QC)
staffs need the same basic components
as the underwriters but in addition,
they also need modules on the steps for
handling loans later found to violate
QM standards.
Small creditors face special challenges. They will need to determine the
appropriateness of a training program
that covers all aspects of the RESPA
servicing regulations. A general training
class like this may be poorly aligned
with company procedures.
Completing the
learning cycle
Once the content has been organized
and aligned with the procedures, the
employees need an effective and
focused plan to complete their specific
courses. The new rules are too dynamic
to fit into excessively formal programs.
The annual onslaught of 30 e-Learning
compliance courses, to be completed by
year-end, will interfere with the success
of the new regulation training. Consider
adjusting the usual schedule and setting
realistic goals for each person to stay
focused on what’s new. Perhaps the
third repeat of the Home Mortgage
Disclosure Act (HMDA) or flood zone lesson can be postponed. Employees
should complete a test as a part of the
training and their work analyzed
through quality control reviews. Postclosing QC isn’t going to help here
because of the lagging turnaround time.
Prior to closing, the data should be
compared with documents in the file as
well as the policy and procedures documents. External resources can check
these documents for you and any errors
can be caught before closing.
Validation is a three-legged stool. The
data in the LOS, the documents, and the
final reports are each critical in supporting compliance.
Now the LMS
And of course, a flexible learning management system (LMS) to set controls
that fit your firm needs to be implemented. It must give the right training
to the right people at the right time.
And once again written policies and
training are part of the final tool.
Having the written policy and procedure documents available in the LMS
for reference will give the employees
coordinated tools as they begin their
new tasks. After the procedures have
been in place, the QA results should be
combined with a follow up survey of the
employees. People on the front lines
have great ideas that can makes things
run more smoothly and still be in compliance. The surveys are a great way to
collect feedback about the effectiveness
of the training and the process itself.
Implementation of the new regula-
tions will be a continuous process for
months to come as the new regulatory
waves hit our shores. Having policies
and procedures aligned with welldesigned training content and early
quality checks is essential and can be
very cost effective. There are many
affordable solutions in the market.
Building it yourself or partnering with a
provider, keeping the LMS current, is the
best insurance money can buy to protect
against fines, penalties, or loans missing
the QM safe harbor target.
Alice Alvey, Master CMB, is senior vice
president of Indecomm-Mortgage U Inc.
She is a national expert in mortgage
training and compliance, with field experience from application through servicing. She co-founded Mortgage U with Jan
Wetzel in 1996 and has designed hundreds of education programs. Alice is
author of the FHA and VA Practical
Guides used widely in the mortgage
industry. She may be reached by e-mail
at [email protected].
63
“The industry needs education and training on the MISMO
standards. Being MISMO-certified will be a differentiator
to conduct business in the mortgage industry going
forward.”
Mortgage Data Standards
Propelling the Need for
Education and Certification
By Heather Kerns & Matt Seu
The mortgage industry has been far
from standardized throughout history. Before the government-sponsored
enterprises (GSEs)—Fannie Mae and
Freddie Mac—and the Federal
Housing Administration (FHA) there
were no true standards. The industry
evolved from a paper and formsbased business transaction process to
an electronic version. Processes
began to mature, however, organizations were still required to have an in-
64
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“The mortgage industry organizations will
have employees with MISMO certifications to
ensure working with the vendors is more productive
and ensure accuracy with the electronic transfer of
data to support the lifecycle of a mortgage.”
depth and specific knowledge of each
investor/insurers policies to conduct
business. Smaller lenders and servicers would choose one investor or
maybe a handful. Doing business with
many investors was simply too expensive in terms of manpower, training,
education and technology solutions
given the differences in processes and
systems. Within the agencies, the
standards have not been aligned, but
things are shifting due to industry
demands and regulations. The Federal
Housing Finance Agency (FHFA), in
coordination with the GSEs, has made
advances to standardize practices,
contract language, and associated
data and systems required to perform
the transactions existing in the life of
a loan. One key decision was the
choice to use Mortgage Industry
Standards Maintenance Organization
(MISMO) standards, its XML schema,
and logical data dictionary, often
referred to as the MISMO Reference
Model, as the basis for the Uniform
Mortgage Data Program (UMDP).
MISMO has been in existence for
years, and is mostly a volunteer
organization instrumental in creating
a robust and data schema covering
the mortgage industry from application
through
securitization.
Volunteers worked tirelessly to
advance the cause, but MISMO did not
have any real power to make people
use the standards. Because of this,
adoption was slow and only a few
companies truly embraced the usage
of the MISMO Reference Model.
With the introduction of the UMDP,
the landscape changed forever. FHFA,
Fannie Mae and Freddie Mac decided
that it was their mission to standardize data transfers among the primary
markets and the GSEs. The theory was
that this standardization would lead
to process efficiency and data quality,
reduced barriers to entry and lower
switching costs. Enhanced usage of
MISMO and a gaining of greater
knowledge continues to evolve and be
proven through the implementation
of the Uniform Loan Delivery Dataset
(ULDD) and the Uniform Appraisal
Dataset (UAD). More UMDP standard
data sets are expected to enter the
market related to servicing and closing later this year.
While the UMDP began moving the
industry forward, MISMO remains a
volunteer army exposing a big problem. Few outside of a core set of volunteers really understands the MISMO
Reference Model. Think about that for
a moment. The industry is being
directed to use a standard that many
are still working to understand.
MISMO acknowledges this shortfall
and has put several efforts in motion.
MISMO is attempting to promote the
use a single common language across
the industry, and that MISMO is that
language. Not only are they working
to develop the standards and to train
industry, they are working closely
with the government housing agencies (FHA, VA, USDA, and Ginnie Mae)
as well as the regulatory community
to educate them about the benefits of
using the common MISMO standards.
During 2012 and 2013, MISMO
launched several efforts focused on
increasing the number of subscribers
(members) by nearly 50 percent. This
first step brought some new resources
to the volunteer groups and provided
some additional band width to the
key contributors who have been
involved for years. The rest of this
article will focus on two areas currently underway with MISMO that
bridges the knowledge gap; educational training and certification.
Why is training and certification so
important? Look at the landscape.
Currently there are thousands of
lenders and servicers, title companies
and mortgage insurers. Additionally,
there are well over 100 software companies supporting the mortgage
industry. These organizations will
need to understand MISMO or rely on
vendors who do in order to conduct
business. There is no way around it.
The GSEs are moving to a standard for
transactions based on the MISMO
Reference Model, and Ginnie Mae is
not far behind. Work has also been
done at the FHA as part of their transformation efforts. The industry needs
education and training on the MISMO
Vendors will be certified and their
associated employees who build and
maintain their software and tools will
also possess a level of certification
enhancing the knowledge base, as
well as the products supporting the
data exchange throughout the mortgage industry. The mortgage industry
organizations will have employees
with MISMO certifications to ensure
working with the vendors is more productive and ensure accuracy with the
electronic transfer of data to support
the lifecycle of a mortgage. This
process and training may not happen
overnight, but the industry demands it
and the need to start soon is evident
based on feedback from across the
industry.
Matt Seu is a partner and owner of
Actualize Consulting and is a member of
the
MISMO
Strategic
Planning
Committee. Heather Kerns is a senior
manager at Actualize, managing all
MISMO offerings for the firm. Matt may
be reached by e-mail at [email protected] and Heather may be
reached by e-mail at [email protected].
65
ware compliance program. We are
also beginning to lay the groundwork
towards a professional certification
for individuals as the MISMO education program matures. As these programs evolve, a full company certification will also be a consideration.”
MISMO recently concluded the first
wave of on-line training for individuals. The three-day course focused on
MISMO Concepts and Fundamentals;
the training sold out. Kyle Bensen,
CMB from MGIC, who leads the MISMO
Education Committee, said, “We are
at a critical juncture in the adoption
of the MISMO standard in the industry, and an unprecedented amount of
change is being introduced to the
standard to accommodate GSE and
regulatory reporting requirements.
Therefore, it is necessary that we
‘raise the MISMO IQ’ throughout the
industry by educating and developing
leaders for the standard setting effort.
We recently launched Course I—
MISMO Fundamentals, the first of our
three-course instructor guided online
MISMO implementation series. We
had over 55 registrants for the sixhour training session, and the feedback has been very positive.”
The intent of the MISMO organization is to continue to increase the
education offerings. Eventually, there
are plans for a full curriculum, starting with the fundamentals and moving to more in-depth and targeted
courses from a business and technical
perspective. Courses are expected to
target multiple audience levels to
ensure understanding of the purpose,
use, and benefits that span from executives to technologists, analysts,
developers and business experts.
Following the education, online
Webinars will be a certification program for individuals that achieve a
designation that the individual has a
certain level of training and MISMO
knowledge. The individual certification program is anticipated to be
somewhat similar to the Certified
Mortgage Banker (CMB) designation
within the MBA’s education area.
Although nowhere near final, one
would expect some type of continuing
education requirement to retain the
designation.
A possible future is a world where
MISMO is fully-integrated into the
fabric of mortgage data, encompassing the entire mortgage lifecycle.
standards. Being MISMO-certified will
be a differentiator to conduct business in the mortgage industry going
forward.
Let’s review a scenario that will
play out over the next year or two.
The agencies expect to have valid XML
transactions from their counterparties based on the MISMO Reference
Model. With the Uniform Collateral
Data Portal (UCDP) the GSEs currently
control the outcome; resulting with a
single platform that all organizations
use for appraisal information. With
ULDD, most companies rely on their
LOS vendors to create a valid XML file.
As an organization using these vendors, how do you know if the vendor
is really exchanging data properly
using the MISMO standards? The
enterprises do publish a list of
providers who assert that their tools
comply with the MISMO standards.
That does not necessarily mean that
the vendors are well-versed in MISMO
and it does not mean that they will be
able to keep up with new releases of
the Reference Model. The faster
UMDP rolls out new data sets, the
more pressure vendors experience.
MISMO announced at their Spring
Summit in the June 2013 that they
are considering implementation of a
software certification program. The
work is ongoing, but we expect more
information will be released during
the upcoming MISMO Fall Summit.
The certification will render service
marks or a seals of approval that
indicate that the vendor and software are worthy of the MISMO
Compliance designation. It is anticipated that the program includes certification of company practices and
evidence of the ability to store and
generate MISMO based data sets. This
is colossal, because going forward,
the results of the MISMO Compliance
Certification will provide transparency into which vendors ARE or ARE
NOT equipped to support the data
exchange files using the MISMO
Reference Model. Feedback from
lenders shows that the certification
will be a differentiator going forward. Jan Davis, director of industry
standards at the Mortgage Bankers
Association (MBA) and the vice president of MISMO recently said,
“Certification will be one of the pillars for the future of MISMO. We are
currently working to develop a soft-
A New Day for
Reverse Mortgages?
By Phil Hall
66
vercoming a problem-plagued reputation is never
easy—and within the
mortgage banking world, reverse mortgages have suffered for years from reputational woes. J.D. Dinnocenzo
encountered this while trying to
explain the benefits of a reverse mortgage to a potential borrower.
“I asked her how much she knew
about reverse mortgages,” said
Dinnocenzo, a Boca Raton, Fla.-based
reverse mortgage specialist at WCS
Lending. “She said, ‘I know they’re
bad.’ I asked what was bad about
them, and she said, ‘I don’t know. I
just know they’re bad.’ I asked who
told her that, and she said, ‘Someone
at church told me.’”
Not surprisingly, the problems
(both real and perceived) associated
with reverse mortgages have trailed
the product for decades and have kept
it from reaching its fullest potential. A
great deal of the difficulty stems from
bad publicity. Typical of the sour press
coverage is a July 18 headline from
The Washington Post that reads,
“Reverse Mortgages Can Become
Nightmares for Seniors and Their
Relatives.”
Then, there is the belief that the
product is weakening the federal
housing finance structure. In the two
years after the 2008 crash, the U.S.
Department of Housing & Urban
Development’s Office of Inspector
General reported that nearly 13,000
O
Home Equity Conversion Mortgages
(HECMs) were in default. These
defaults created havoc for the Federal
Housing Administration (FHA), which
insured the HECMs.
“Congress was curious why there was
an increase in reverse mortgage
defaults,” said Roger Beane, CEO at
LRES, based in Orange, Calif. “The only
opportunity
for
reverse mortgages
to be foreclosed
upon are due to a
lack of payment on
taxes and insurance.”
Needless to say,
advocates of the
product have often
found it very difficult to sing the
praises of reverse
mortgages.
“It is a wonderful
solution for the
right needs,” said
Todd K. Ballenger,
executive vice president at Holmdel,
N.J.-based Vantage
Production LLC. “But it was always
plagued with complexity. It reminds me
of the old Zig Ziglar quote: ‘A confused
prospect never buys.’”
power to consolidate the pricing
options on its Standard Fixed-Rated
HECM and Saver Fixed-Rate HECM. As a
result of this consolidation, the fixedrate lump-sum option for borrowers
will no longer be available.
Last month, President Obama signed
the Reverse Mortgage Stabilization Act
of 2013, which is designed to secure
consumer protection while ensuring
the financial viability of the FHA’s
HECM
program.
According to the
bill’s author, Rep.
Denny Heck (D-WA),
the FHA will now
have the authority
to “quickly make
changes to the
[HECM]
program
necessary to stabilize it.” Heck adds
that while reverse
mortgages account
for less than seven
percent of FHA’s
portfolio, they are
the root of more
than 16 percent of the agency’s expected losses.
While observers believe these
changes may result in less money for
potential borrowers, it nonetheless
translates into more consumer confidence about the product.
“The changes should help drive
consumer behavior,” said Peter Bell,
president and CEO of the National
Reverse Mortgage Lenders Association
“Not only are
borrowers being
encouraged to give
reverse mortgages a
second look, but
some lenders are
being asked to
consider adding the
product to their
lineup.”
Brave new world
However, a new federal oversight regimen may finally help to erase the lingering doubts surrounding the product.
In January, HUD issued Mortgagee
Letter 2013-01, which gave the FHA the
(NRMLA). “People will be able to take
out the amount they need and leave
the line of credit. It will be better for
everyone.”
Also in the mix is the new oversight
being provided by the Consumer
Financial Protection Bureau (CFPB),
which has a particular focus on the
marketing of reverse mortgages to
seniors. Les R. Kramsky, a Marlboro,
N.J.-based real estate attorney, welcomes the CFPB’s supervisory role as a
means of building the product’s reputation for safety.
“The new level of CFPB oversight
will prevent further potential abuses
to senior citizens in the reverse mortgage market by unscrupulous loan
officers,” said Kramsky. “The CFPB
requires improved disclosures to
reverse mortgage borrower and it will
limit misleading reverse mortgage
advertising. Borrowers will now be
counseled on alternatives to reverse
mortgages and to see if the reverse
mortgage is truly understood by the
borrower along with determining if a
reverse mortgage is the right product
for the borrower.”
Kramsky adds, “I believe that the
CFPB oversight will lead to more senior citizens obtaining reverse mortgages for its intended purpose, which
is providing them with loans to allow
older homeowners to convert home
equity into monthly payments or a
line of credit so they could age in
place in retirement. As a result of the
CFPB oversight, there will be a
decrease in reverse mortgage defaults
and foreclosures.”
Compliance and Marketing 2013:
Safely Growing Your Business and
the Safest New Marketing Strategy!
If you have ever done a significant amount of marketing, you have probably
ran into or heard of others running into problems with compliance (hoops
to jump through to keep your marketing compliant). The mortgage industry
and your marketing strategy are heavily regulated by the Federal Trade Commission (FTC) and now the Consumer Financial Protection Bureau (CFPB).
These agencies are put in place to make sure that consumers aren’t being
taken advantage of by lenders or their marketing, and with all the guideline
changes in the mortgage industry, it’s easier than ever to get into hot water.
How can you stay current with all of these regulations?
1. You can read the guidelines on the agency Web sites.
2. Make sure you work with a reputable marketing firm. This is key. There are
plenty of “marketing people” out there who don’t understand the guidelines. If they don’t know the rules, how can you expect them to be followed?
3. If you have a compliance department, USE THEM! They have intimate
knowledge of industry regulations and will make sure you don’t get
into any hot water.
4. This is the most important of all … TALK TO YOUR MARKETING COMPANY
ABOUT IT. If you use an outside marketing firm, you must absolutely take
the time to talk with them and find out how much they know about the
guidelines for the specific type of marketing that you do or are planning on
doing this year. Sure, it’s not their responsibility to make sure you follow the
rules, but if you get into trouble they will lose you as a client and any good
company will always put your best interest first.
Expanded opportunities
Phil Hall is senior editor of National
Mortgage Professional Magazine. He
may be reached by e-mail at
[email protected].
Some easy ways to make sure you remain in compliance:
l Understand the regulations that impact your marketing, your industry,
your loan type and do your best to follow them. They will sometimes
lower your response rates, so it’s important to consider this BEFORE
you begin a marketing campaign.
l If you’ve already started your campaigns, have that conversation with
your compliance officer and/or you marketing firm and make any necessary changes ASAP
l Talk with your marketing firm to get useful insight into how you can
keep your marketing profitable, while following set guidelines and find
out what’s working for the types of loans you focus on.
Marketing tip for the fall: Live transfer leads
These leads have been up and coming all summer. Combining all forms of
marketing to produce prospects that are truly interested in refinancing or purchasing now is outperforming any other marketing in the industry. You get
qualified interested prospects on the phone now. And since you’re not doing
any of the upfront marketing (only paying for the leads), your are only liable
for what happens to the lead after it is transferred to you. On top of that, you
pay per call, which basically guarantees the success of your campaign. These
are offered in all 50 states and for all loan types. It’s the newest wave of marketing to sweep the mortgage industry, and it’s the most compliant.
Medford, Ore.-based TagQuest is a full-service marketing firm created specifically for the ever-changing business world. TagQuest assists companies with
their direct marketing, advertising and branding needs, and knows what it
takes to generate quality customers and, most importantly, how to retain those
customers for years to come. TagQuest brings forth a unique opportunity to
utilize our experience and expertise in varying consumer sales and marketing
environments. For more information, call (866) 376-5540 or visit Tagquest.com.
VIEW OUR MOST RECENT WEBINAR ON YOUTUBE
Online readers please click on the link below,
readers of the print edition, please copy the link
and paste it into your browser.
http://www.youtube.com/watch?v=coBEsmEVOgo
SPONSORED EDITORIAL
67
house in New Jersey and move to
Florida by using a reverse mortgage to
cover the new purchase.”
NRMLA’s Bell agrees, adding that
the product is also getting a new
degree of positive media coverage.
“Once it was a loan of last resort for
people in financial need,” said Bell.
“Now, it is being enabled by financial
planners for different uses. Jane
Bryant Quinn, in her blog, suggested
seniors look at it. The Wall Street
Journal said that more affluent seniors
should look at it, too.”
Not only are borrowers being
encouraged to give reverse mortgages
a second look, but some lenders are
being asked to consider adding the
product to their lineup.
“I have been frustrated for more
than 15 years that credit unions have
not done more work in this area,”
said Bob Dorsa, president of the
American Credit Union Mortgage
Association. “I thought it would be an
ideal product to transcend the generational issues for older homeowners
and their younger children to sustain
their commitment to the credit union
way of life. And considering both the
retirement issues facing older people
and the fact that 30 percent of homeowners do not have any mortgage at
all, this is something that the credit
union folks may find to be attractive
one of these days.”
These changes come at the perfect
time, according to Don Giorgio, president of Levittown, N.Y.-based United
Northern Mortgage Bankers, who
notes that reverse mortgages may
finally be embraced as a means of
establishing stability in a less-thanstable economic environment.
“Reverse mortgages are going
from being a 20-year-old infant into
adolescence,” said Giorgio. “This
transition is very worthwhile—
indeed, it is much needed, in view of
the state of the economy and for
what our seniors need. Today’s seniors are on fixed incomes, but the
cost of living around them is spiraling out of control. Reverse mortgages are transitioning from a needbased product into a want-based
product, and a lot of people will use
it to stay afloat.”
Giorgio believes that the funds
tapped from reverse mortgages will
play a vital role in covering escalating
medical expenses. “No matter how
much the government is trying, they
are not covering these costs,” Giorgio
said.
Eddy Perez, president of Atlantabased Equity Loans LLC, states that a
new wave of seniors is less apprehensive about reverse mortgages, to the
point that they are using them in
more innovative ways.
“The Baby Boomers are more computer savvy and they have a greater
awareness of the subject,” said Perez.
“Some are using reverse mortgages for
home purchases—they would sell a
Why Do I Need a
Compliance Management System?
By Joy K. Gilpin
68
I wanted to explore a question that my team frequently gets:
Why do I need a Compliance Management System?
While there are many strong reasons why you need one,
there is probably one critical reason … because the Consumer Financial Protection Bureau (CFPB) says so.
For all supervised entities, the expectation is to have a true Compliance Management System in place that is appropriate for the size and
scale of your organization. This is emphasized in several documents,
including the Supervision and Examination Manual, which gives you
guidance on an examination, as well as the recently released 2013 CFPB
Dodd-Frank Mortgage Rules Readiness Guide which includes a questionnaire to evaluate your current progress complying with all of the
new mortgage rules.
The CFPB has come out and stated pretty clearly that in their opinion, weaknesses in a Compliance Management System can really result
in violations of law or regulations, each of which are associated with
harm to our consumers.
So then, what is a Compliance Management System?
While there are many components that go into a true Compliance
Management System, essentially it is a program designed to ensure that
the policies and practices that are implemented in your business operations are in full compliance of federal financial consumer law. That’s
the big picture that we are trying to get to.
When you think about it, a Compliance Management System, when
properly structured, establishes compliance responsibilities. It then
communicates those responsibilities to employees and associates. Also,
it gives you a vehicle to incorporate policy and procedure into business
process. Finally, it creates a responsibility for meeting those requirements through internal policies and creates ownership or accountability by ensuring that those acts, policies, and practices are carried out
and that legal requirements are met. This process is validated by regular and scheduled review, and, as needed, implementation of revisions
for corrective action.
It’s all part of a larger working solution in which each piece supports
the overall objective of adherence with consumer financial law and regulation, as well as consumer transparency and advocacy.
Ready to get started?
The AllRegs Compliance Management System can help. Our comprehensive compliance solution can help you with the following features:
l
l
l
l
l
l
Audit all policies and ensure that you have the correct policies in place
Policy authorship as needed
Deliver training on policies
Archive and track what policies were live at anytime
Assess and test staff on the policies after they read them
Conduct training for your Board of Directors and all employees as
applicable
l Provide one system of record for all reports
For a personal consultation on your AllRegs Compliance Management
System needs, call your dedicated account executive at (800) 848-4904 or
visit www.allregs.com and click on “Compliance Management System” to
request a demo. Or, get more information about AllRegs and the full suite
of products and services by visiting www.allregs.com today.
Joy K. Gilpin is professional services manager with AllRegs. She may be
reached by phone at (800) 848-4904.
SPONSORED EDITORIAL
Growing Your Real Estate
Agent Relationships, Grow
Your Mortgage Business
Part III
Offer Value-Added Services
By Jean LeBlanc
Offer niche
products for
buyers with
specialized needs
Don’t just tell your buyers you have lots of
loan products. Instead, provide various
solutions and tools to fit special niche
buyers, such as foreign nationals, co-op or
condo buyers. You can offer free preapprovals. A newer idea is to offer a free
smartphone mortgage calculator app to
your business partners that they can share
with their clients, so that they can play
around with different downpayment
amounts and various rates.
Host product-specific
real estate classes
Offer to train new agents on various loan
products. Approach a real estate
owner/broker and tell them that you
understand their time is limited, and you
can assist them with getting new agents
up to speed by providing in-house training for various loan programs, helping
them to spread the net wider to bring in
more potential qualified buyers. You can
then bring in breakfast and hold training
sessions in their offices. If you can help an
agent sell one more property because of a
new program you explained to them, you
will have achieved a relationship status
few LOs ever attain.
Host classes for your local
agent association
On a larger scale, consider teaching ongoing classes for your local real estate agent
association. You may be able to partner
with a local title company or attorney who
is already teaching real estate continuing
education classes, or you can work with
your local real estate association to hire a
state-certified trainer.
One Phoenix branch did this on a regular basis. They found that free seminars
were under-attended, so they began to
charge $20-$100 per course and every
seat was filled. They sent invitations to all
real estate agents using the nationwide
company, www.zipyourflyer.com, which
will blast e-mail a flyer to every real estate
agent in the area at a cost of approximately $50 for 5,000-7,500 agents.
Consider using this service to e-mail
your best offer three or four times until
you’re built up your own database. With
these first four e-mail invites, give local
agents a compelling reason to visit your
Web site and have them fill out a form on
your landing page. Now you’ve captured
their e-mail addresses and can begin to
build your own list for regular agent-specific e-mails.
Use social media to
connect with more agents
On both Facebook and LinkedIn, it’s quite
possible that you’ll find a group of real
estate agents in your local area. Join that
group and begin contributing to conversations and asking such questions as, “What
are your options when your buyer only has
funds for three percent down” or “Hybrid
ARMs are making a comeback … what
does this mean for your buyers on the
fence?” But be careful to NOT be too saleslike or pushy. You want to establish yourself as someone who knows a lot about
various mortgage options—not establish a
reputation as a pushy LO.
You may also want to check out the
option of buying Facebook or LinkedIn ads
for your target group of real estate agents.
You can spend about $100 per month to
have your ad viewed multiple times by
these agents.
Here are a few more ideas for valueadded service:
l Maintain an up-to-date database of all
of your company’s real estate agentpartners, title reps, attorneys and other
strategic business partners and make
contact with each one at least once a
month.
l If you send a monthly e-newsletter to
real estate brokers, keep it very short
and make sure you focus on “what’s in
it for them,” such as your ability to
close a loan with 10 days.
l Create a Priority Service flyer for agents
l
l
l
l
to give buyers that says, “Since you’re
working with XYZ Real Estate Agent,
you’ll receive priority service and a free
appraisal with your loan from ABC
Mortgage.”
Coach your loan officers to fill every
visit to a real estate agent with solutions for the agent and their buyers.
Don’t make presentations a commercial about the loan officer. The goal is
to show agents how you can help them
sell more properties.
Be on the lookout for new offices or
agents, and send them a handwritten
note congratulating them. Follow up
with another mailing providing sample
flyers that you can co-brand and provide to them.
Offer to provide real estate sign riders
for your agents that give a 24/7 recorded description of the property, but also
captures the prospect’s phone number
so that both you and the agent can follow up with them.
If you’re a blogger or a pretty good
writer, offer to write a few mortgage-
legends of lending
related articles for the real estate
agent’s Web site, answering basic questions like: “What size loan will I qualify
for?” and “What if I don’t have a big
downpayment?” and “What loan
options are available to me?” Of course,
be sure to add your contact info at the
end of every article, with a “call to
action,” such as “Find out how low your
downpayment can be with this loan” or
“Get prequalified today to begin your
house hunt.”
l Offer to split ad costs with agents using
co-branded marketing collateral.
Provide them with co-branded templates for “new listing” flyers, open
house flyers and “just sold” postcards.
Jean LeBlanc is director of marketing for
Guaranteed Home Mortgage Company.
For more marketing tips, download the
eBook, 13 Ways to Juice Up Your
Marketing in 2013, by going to
joinghmc.com and clicking on the eBook
offer midway down the page. She may
be reached by phone at (914) 696-3400.
NMLS
W
Why
hy NAP
NAPMW?
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ay.
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exclusive access
access to
to timely educaeducaaffecting
career
tion regarding
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our car
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FREE TO
TO MEMBERS monthly
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69
LLeadership
eadership
NAPMW
since
women
NAPMW is not a women’s
women’s organization.
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ew
omen make
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profesity of professionals
professionals in the mortgage/banking
mortgage/banking pr
ofession, our purpose
purpose is to
to help them advance
advance in business,
business, personal,
personal,
and leadership development.
development.
nearly 20 years, you might wonder if they
ever get nostalgic. Jampedro puts it this
way, “Do we ever get together and have a
beer and talk about the good old days
and the old people? Sure … for about 15
minutes, then it’s on to the new. Our philosophy is to embrace what is in the market rather than what was, and to respond
as quickly as possible.”
Legendary status for a mortgage firm
requires longevity … check. Legendary
status requires extraordinary achievements … check. But even more, legendary status requires overcoming major
obstacles and the ability to have great
vision and clarity for what lies in the
future … check. GSF Mortgage
Corporation has a great story to tell and
is a worthy recipient of our Legends of
Lending recognition. For more information on all of GSF’s offerings, visit
https://gogsf.com on the Web.
David J. Coster is senior editor of National
Mortgage Professional Magazine. He may
be reached by phone at (919) 559-2171 or
Networking
Net
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NAPMW is a ccommunity
NAPMW
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nearly
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banking
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industry.
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and w
women
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from
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backgrounds
rounds have
have joined NAPMW
NAPMW because
whatt they do
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NAPMW for
for up-to-date
up-to-date
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Both
oth pr
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ofessionals and emplo
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emp
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for them in NAPMW.
NAPMW
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Na
National
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Na
National
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W visit:
www.napmw.org
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ww.napmw.o
org
or ccall:
all: 1-800-827-3034
1 800 8
1-800-8
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827-3034
Have
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Industry
Industry Updates
Up
U datess
viable. We will continue to invest in it. It
grows for us each month, particularly as
originators move away from refinances.”
For the future, Jampedro sees opportunities in lending to the emerging millennial market of homebuyers. In
response, the firm has taken bold steps to
update and expand its brand, Web and
social media efforts. He believes that,
“Although the Internet has changed the
way that people do business, customers
still rely heavily on word-of-mouth recommendations, a reliance that’s especially true in the mortgage and housing
industries. When it comes to big purchases such as homes, customers consistently
turn to the Web first.”
As it relates to future growth,
Jampedro expects to follow the same
path as his predecessors … deliberate
and selective growth. “We will continue
to add branches where there is a strategic
fit. We are looking for experienced
branch managers who understand the
concept of running a branch and want to
get back to originating.”
With all they have accomplished over
IIff you
you believe
believe in helping to
to elevate
elevate the educational
educational standards
standards of
this industry,
industry, or assisting in developing
developing the most competent
competent
industryy w
work
industr
ork force,
force, then you
you believe
believe in NAPMW.
NAPMW.
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[email protected]
SEPTEMBER 2013 n National Mortgage Professional Magazine n
70
Hometown Lenders
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[email protected]
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Clix Mg
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Office: 727.474.1442
www.clixmg.com
Clix Mg, provides the mortgage industry with compliant marketing
solutions. We assist mortgage companies to balance the competing needs of effective marketing campaigns and compliance. Our
management team includes attorneys, software developers and
marketers, combining more than 50 years experience in the industry. During the past year Clix Mg has been developing the LCP
(“Lender Compliance Portal”). LCP is a web based platform that
provides mortgage companies the ability to track, control, oversee
and approve every marketing piece, material, campaign or program according to their own guidelines in an easy user friendly
and cost effective manner. LCP provides reporting capability for
internal as well as State and Federal audits.
COMPLIANCE CONSULTANTS
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LENDERS COMPLIANCE GROUP
167 West Hudson Street - Suite 200
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31550 Winterplace Parkway, Salisbury, MD 21804
800-258-3488
www.creditplus.com
The first full-service, mortgage risk management firm
in the country, specializing exclusively in mortgage compliance.
Pioneers in outsourcing solutions for mortgage compliance.
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LOAN ORIGINATION SYSTEMS
Titan List & Mailing Services, Inc.
1020 NW 6th St Suite D, Deerfield Beach, FL. 33442
(800) 544-8060
www.TitanLists.com
Titan List and Mailing Services, Inc. is a direct marketing agency
that offers a complete range of advertising and design services.
The firm specializes in data lists (mail/phone), printing, direct mail,
graphic and website design as well as internet and SEO marketing. Starting in 1998, the company has, since then employed highly skilled individuals who have considerable experience regarding
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campaign themselves including Design, Data Lists, Printing,
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Calyx Software
800-362-2599
www.calyxsoftware.com
Calyx Software is the #1 provider of affordable mortgage solutions
for banks, credit unions, mortgage bankers and brokers. Beginning
with customizable websites that offer online mortgage applications
with eDisclosures and document request/retrieval, Calyx offers
products that enable smooth bi-directional flow of data from start to
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n National Mortgage Professional Magazine n SEPTEMBER 2013
AllRegs offers mortgage professionals fast, reliable answers needed to conduct their day-to-day business. From research and reference to business intelligence, from education and training to
professional services, we are your definitive source for mortgage
industry information. With tools for originators like NMLSapproved CE training, regulatory content libraries for compliance
staff, guidelines for underwriters, policy manuals for operations,
and business intelligence for business development – we have you
covered as the leading information provider for the mortgage
industry. If you have a specific need, our professional services
team can help with thing like policy, procedure or guideline development, as well as custom training or publishing resources.
Contact us to learn how we can help you – visit www.allregs.com
today.
TagQuest
www.myharpleads.com
TagQuest.com
888-717-8980
71
AllRegs—Your Source for Fast, Reliable Answers
2600 Eagan Woods Drive, Suite 220
Eagan, MN 55121
(800) 848-4904
www.allregs.com
MARKETING SERVICES
RETAIL BRANCH
973-646-3067
www.AFRWholesale.com
8520 Macon Rd. Ste 2
Cordova, TN 38018
[email protected] | 615-477-7118
MCMF developed My Guide, a Premier Credit & Financial
Education Magazine that you can customize with your LOGO
and Ad Pages to feature your organization as well as provide
your borrowers a go-to-guide for credit and financial resources,
empowering them to make the most informed financial
decisions.
This 16 page, full color, quarterly publication, provides financial
literacy tools in a concise, unbiased, easy to understand format.
SEPTEMBER 2013 n National Mortgage Professional Magazine n
72
Jim Melchior, Vice President of Sales
American Financial Resources' Wholesale Division is one of the
country's leading wholesale lenders. Recently ranked #1 in total
sponsored FHA loans closed, AFR offers a wide variety of
products including:
Maaverick Funding Corp. is a direct mortgage lender licensed in
30 states across the country. Haavving obttained FHA, VA
A, USDA and
Fannie Mae appro
ovals, Maaverick is growing and seeking top
talent for their expanding nationwide footprint.
My Guide is offered in traditional magazine print, as well as our
newest electronic flipbook version, bringing “flipping through a
magazine” experience right to your desktop
Phone: 855.422.5917
ny NJ
NJ,, 07054
9 Entin Rd., Parsippany
Visit us at www
w.Ma
. averickFundingg.com
Contact me today to learn more about this one of a kind
opportunity!
Maverick Fundingg Corp. NMLS# 7706
Gets you more referrals,
inquiries, and closings!
T
hat’s what mortgage loan
Want more loans?
Warren J. Rosaluk
800.795.2150
BrochureGuy.com
WHOLESALE/CORRESPONDENT LENDERS
• Conventional • USDA • Manufactured Housing • VA
• Freddie Mac Open Access and Fannie Mae DU Refi Plus
• One-Time Close Construction • FHA
• FHA 203(k) and 203(h) rehab loans
Since 1997 we have been expanding to better serve you and our hard
work and investment have resulted in faster turn times, quality customer
service, and one of the most robust product lines in the industry.
American Financial Resources, Inc., 9 Sylvan Way, Parsippany, New Jersey 07054
1-888-664-2101 • NMLS# 2826 • Intended for Mortgage Professionals only.
Celebrating 15 years of exceptional service to our clients. Please visit www.afrwholesale.com
for a full range of products, programs, forms and additional information.
VALUATION SERVICES
Close Jumbo Loans Others Cannot
Veros Real Estate Solutions
"Innovating Mortgage Technology"
veros.com | (866) 458.3767
Follow us on Twitter at @verosRES
Veros has been an industry leader in real estate collateral
valuation management & decision analytics for more than a decade.
We offer a wide variety of software solutions and tools to help
you manage collateral valuation from the beginning of the
mortgage chain and throughout the life of the loan.
Service more jumbo borrowers with New Penn’s
Jumbo Advantage portfolio product
877-930-PENN
www.GoNewPenn.com
Jumbo Advantage Highlights:
• Market leading jumbo rates
• Loan amounts up to $2 million
• Cash out up to $400,000
• FICO down to 680
• Expanded loan-to-value (LTV) up to 85% (no MI)
Contact Veros today to learn about:
• Sapphire – the most comprehensive valuation management platform
• VeroVALUE – the industry’s leading national AVM
• VeroSCORE – automated appraisal scoring quality control tool
• ComplianceTRACK – independently designed AVM cascade
• VeroFORECAST - most advanced residential market forecast
• Expanded debt-to-income ratio (DTI) up to 50%
Email Veros at [email protected] to learn more or to schedule your
complimentary product demonstration.
RECRUITMENT
WAREHOUSE LENDERS
Why should every mortgage broker
consider obtaining a warehouse line
from Goldome Financial?
Go to our website www.Goldome.com
Press “Click Here” and we will tell you
or call us at
469-444-9800
The Direct Path into the Reverse Mortgage Market.
Ralph E. Rosynek, Jr. / Senior Vice-President
National Production Manager /HECM Direct Endorsement Underwriter
E-Mail: [email protected] / [email protected]
Office: 281.404.7970 / Cell: 708.774.1092 / EFax: 866.543.5420
URL: www.rmsnav.com • www.RMPath.com
Whether you are an experienced reverse mortgage professional
looking to grow faster or a firm wanting to create a new product
line, allow RMS’s production division RMPath to work with and
alongside you to build a strategic path to success. We have:
• Correspondent, Wholesale Lending And Aggregation Partnering
• We Offer Exceptional Customer Service And Market - Leading
Pricing
• Powerful, Secure, Scalable Loan Origination Systems
• Proprietary State-Of-The-Art Technology Utilizing The RM
COMPASS Technology Platform
• Customizable Production Strategies To Fit Your Needs
• Rapid Execution And Exceptional Customer Service
• Excellent Compliance And Regulatory Controls
WHOLESALE/CORRESPONDENT LENDERS
Rushmore Home Loans
www.rushmorehl.com
888.202.0878
Rushmore Home Loans is a wholesale lender dedicated to
understanding and answering the needs of our brokers. We
provide competitive mortgage loan products with a focus on
quality, efficiency and flexibility. Our goal is to deliver an
experienced, customer-focused team with access to the most
comprehensive technology platform to deliver the highest
possible service to our brokers.
WHOLESALE LENDERS
United Wholesale Mortgage
800-981-8898
www.uwm.com
UWM has a full set of mortgage products to meet all of your
lending needs with Conventional, FHA, USDA (Rural
Development), VA, Jumbo, HARP 2.0 and DU Refi Plus. With
UWM’s ELITE program, you will receive the most aggressive
conventional rates and pricing in the industry for your elite
borrowers! Discover Lending Made Easy with United Wholesale
Mortgage!
WHOLESALE/RESIDENTIAL
WHOLESALE LENDERS
CBC National Bank
3010 Royal Boulevard South, Ste. 230
Alpharetta, GA 30022
888-486-4304
HomeBridge is a national wholesale lender offering both
conventional and government products. We are committed to
providing the highest value to our clients through competitive
pricing, unique product offerings, superior customer service,
and state-of-the-art technology.
CBC National Bank is one of the nation’s fastest growing
wholesale lenders offering Conventional, FHA, VA, and USDA.
The most important aspect of being a leader in today’s market is
the ability to build and maintain a meaningful relationship with
each customer. We understand that these meaningful relationships coupled with competitive pricing and efficient technology
are the pillars of today’s lending environment.
We are hiring Loan officers in the Southeast. GA, FL, AL, TN,
NC,SC.
Currently expanding and hiring experienced Wholesale Account
Executives nationwide.
Contact Gabe Santiago our Corporate Recruiter at
[email protected] for further details.
Please send your resume to [email protected].
Big Enough to MATTER…Small Enough to CARE
NMP MAGAZINE—NOVEMBER 2013
Real Estate Mortgage Network, Inc.
www.remnwholesale.com
866-933-6342
REMN has FHA, USDA, 203k, VA and Conventional solutions to fit
the needs of your customers. But, at REMN, our most valuable
product is our people. The REMN Sales and Operations Teams
give you - and your loans - the time and attention that you
deserve. Even better, at REMN, same-day approvals are guaranteed.* You can rely on us to get the little, yet vital, things taken
care of on time.
Interested in joining our Wholesale Division?
Send your resume to
[email protected]
mortgage
technology providers
directory
coming in november 2013
\We are seeking the best Mortgage Technology Providers to be featured
in our first-ever Mortgage Technology Provider Directory, slated to
appear in our November 2013 edition. If your company offers a unique
product and is loved by techies and clients alike, you need to be featured
in this directory! Visit https://nmpmag.wufoo.com/forms/2013-mortgage-technology-provider-directory/ for more information and to register your company today!
NMP Media Corp.
1220 Wantagh Avenue • Wantagh, New York 11793-2202
p 516.409.5555 • f 516.409.4600
e [email protected]
n National Mortgage Professional Magazine n SEPTEMBER 2013
Building bridges to success, one loan at a time.
HomeBridge
5 Park Plaza, 10th Floor
Irvine, CA 92614
www.homebridgewholesale.com
73
USA Cares Mortgage Heroes:
Angela Jett of Equity Missouri
By Joann Muncey
74
The “Show Me State” has been home to many exceptional
Americans in our history—people who believe in making a
difference in the lives of others. This month’s mortgage
hero, Angela Jett, is also working to make a difference in the
lives of others.
Angela, a 2013 Five-Star Realtor, works with Equity Missouri based in
St. Louis, and has been in the real estate industry for 13
years. In that time, she has helped hundreds of families
achieve the American dream of homeownership, from buying, selling, investment portfolios, leasing, short sales and
foreclosures.
One thing that stands out about Angela is that she is very
Angela Jett passionate about helping our veterans and their families.
In her business model, her mission is to provide the utmost
care in service for a family’s real estate needs and personal finances. She
works with lenders, financial planners and other professionals who have
served in the military and those who have programs to educate veterans
on homeownership. Her care and concern also translate in her personal
life, where she spends a great deal of her personal time as chair of the
Missouri/Southern Illinois USA Cares Chapter. This volunteer position allows her to work with military families in the community who are looking
for help and guidance, and also gives Angela the opportunity to reach out
and educate others about military families and their needs.
My personal quote is, “I believe in justice and truth, without which
there would be no basis for human hope. This quote inspires me because
the truth is what matters in every aspect of life-the nature of truth becomes grounded in the moments of decisions encountered in one’s life—
knowing it, being with it, a part of it, and living it. People will love in
truth, fight for truth, and die in knowing the truth.”
“There is so much that faces our families today at all economic levels.
In working with so many families, I have found that making the right decisions for the immediate future and for long-term planning are both extremely important to my clients. Investing in real estate is a huge decision.
However, there is a larger picture that we want to get across. Planning
how best to protect those investments and having a plan for maximum
efficiency of the family’s personal finances can ensure a sound peace of
mind and a wealthier future for generations to come.”
USA Cares is a 501(c) 3, non-profit organization that provides financial
and advocacy support to post 9/11 veterans and their families. USA Cares
has four core programs: Combat Injured, Housing Assistance, Emergency
Assistance and Jobs Assistance. Nationally, USA Cares has responded to
more than 45,000 requests for assistance with approximately $10 million
in indirect-support grants. Additionally, USA Cares offers a Certified Military Housing Specialist (CMHS) course to all housing professionals which
offers 10 CEUs from the Association of Financial Counseling, Planning and
Education. For more information, log on to www.usacares.org.
Joann Muncey is director of housing assistance at USA Cares, where she has
worked since 2008. She may be reached by e-mail at [email protected].
USA Cares is a 501(c) 3, nonprofit organization that provides financial and
advocacy support to post 9/11 veterans and their families. USA Cares has
four core programs: Combat Injured, Housing Assistance, Emergency Assistance, and Jobs Assistance. Nationally, USA Cares has responded to over
45,000 requests for assistance with approximately $10 million in direct-support
grants. Additionally, USA Cares offers a Certified Military Housing Specialist
Course to all housing professionals which offers 10 CEU’s from the Association
of Financial Counseling, Planning and Education. For more information, log
on to www.usacares.org.
new to market
age closing time for first mortgages in
June 2013 was 47 days, a three-day
increase from the previous month. In
an effort to overcome this industry
challenge of on-time closing fulfillment,
Churchill’s
“Purchase
Guaranteed Close” program ensures
the agreed-upon close date is met. The
guarantee starts from the time the
loan officer receives a full and complete loan application package from
the borrower and, if the loan is not
closed within the agreed upon date,
Churchill guarantees a $1,000 credit to
the borrower at the time of closing.
“Our ‘Purchase Guaranteed Close’
program supports Churchill’s strong
commitment to borrowers while providing peace of mind and confidence
to sellers and real estate agents,” said
Mike Hardwick, president, Churchill
Mortgage. “Efficiently meeting the
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
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the target issue.
acquire information and options, and
then, after careful consideration,
make a decision on moving forward.
date of on or after Jan. 10, 2013, for loans for
which the creditor receives an application. See 78
Fed. Reg. 6408, 6419 (Jan. 30, 2013) (12 C.F.R. §
1026.43(c).
Jonathan Foxx is president and managing
director of Lenders Compliance Group and
Brokers Compliance Group, mortgage risk
management firms devoted to providing
regulatory compliance advice and counsel
to the mortgage industry. He may be contacted at (516) 442-3456, by e-mail at
[email protected].
Michael G. Barone is director of legal and
regulatory compliance at Lenders
Compliance Group. He may be reached by
e-mail at [email protected]. For more information, visit
www.LendersComplianceGroup.com or
www.BrokersComplianceGroup.com.
6—Ability-to-Repay: Regulating or Underwriting, Part
I, Foxx, Jonathan, National Mortgage Professional
Magazine, June 2011, Volume 3, Issue 6, pp. 2630; Ability-to-Repay: Regulating or Underwriting,
Part II, National Mortgage Professional Magazine,
Foxx, Jonathan, July 2011, Volume 3, Issue 7, pp.
20-42; Ability-to-Repay: The Basics and a Chart,
Foxx, Jonathan, National Mortgage Professional
Magazine, September 2011, Volume 3, Issue 9,
pp. 6-24; and, for our newsletters, visit our firm’s
Library (http://LendersComplianceGroup.com) or
its
publications
Web
site
(http://Publications.LendersComplianceGroup.com).
Footnotes
1—Elizabeth Warren is now a U.S. Senator (D-MA).
2—The three percent cap on broker revenue is
included in the Final Rule issued by the CFPB and
published in the Federal Register, Jan. 30, 2013,
Ability-to-Repay and Qualified Mortgage Standards
under the Truth in Lending Act (Regulation Z) at
https://www.federalregister.gov/articles/2013/01/30/2013-00736/ability-to-repay-andqualified-mortgage-standards-under-the-truth-inlending-act-regulation-z.
3—The CFPB issued Proposed Amendments to the
Ability-to-Repay Standards under the Truth-in-Lending
Act (Regulation Z). See Proposed Amendments to the
Ability-to-Repay Standards under the Truth-in-Lending
Act (Regulation Z), Jan. 10, 2013, see http://files.consumerfinance.gov/f/201301_cfpb_concurrent-proposal_ability-to-repay.pdf.
4—78 Fed. Reg. 6447, 6581 (Jan. 30, 2013).
SPONSORED EDITORIAL
needs of those purchasing a home
and guiding them into a new chapter
in their lives is fundamental to restoring faith in the American Dream of
homeownership.”
5—The Final Rule provides a compliance effective
7—The “Average Prime Offer Rate” (APOR), published weekly by the CFOB, is an annual percentage rate that is derived from average interest
rates, points, and other loan pricing terms currently offered to consumers by a representative
sample of creditors for mortgage transactions
that have low-risk pricing characteristics. See 12
CFR Chapter X, Subpart E-Special Rules for Certain
Home Mortgage Transactions, §1026.35(a)(2).
8—The CFPB has the authority to assess civil
monetary penalties in the amount of $5,000 per
day for a violation, up to $25,000 per day for any
reckless violation, and up to $1 million per day
for any knowing violation.
9—78 Federal Register 6531. The Final Rule
establishes a five-tier structure in which mortgages of certain loan amounts retain the designation of a QM so long as the total points and fees
do not exceed the listed thresholds.
10—Ibid.
11—For instance, see Handbook 4060.1, and numerous Mortgagee Letters. For more information, see
also http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/lendappr.
calendar of events
N A T I O N A L
M O R T G A G E
Thursday, November 7
DECEMBER 2013
Virginia Association of Mortgage
Brokers (VAMB) 25th Annual
Convention
The Hilton Garden Inn Richmond
Innsbrook
4050 Cox Road
Glen Allen, Va.
For more information,
call (804) 285-7557
or e-mail [email protected].
Utah Association of Mortgage
Professionals 2013 Annual Expo &
Conference
South Towne Exposition Center
9575 South State Street
Sand, Utah
call (801) 597-2122
or visit www.uamp.net.
Wednesday-Friday, December 4-6
Sunday-Wednesday,
October 27-30
Retained Servicing Workshop
Westin-Dallas Fort Worth Airport
4545 West John Carpenter Freeway
Irving, Texas
call (800) 793-6222
or visit www.mortgagebankers.org.
SEPTEMBER 2013
Thursday-Friday, October 24-25
Sunday-Tuesday,
September 29-October 1
Mortgage Bankers Association
Regulatory Compliance Conference
Renaissance Washington DC
Downtown Hotel
999 9th Street NW
Washington, D.C.
call (800) 793-6222
OCTOBER 2013
Friday, October 11
Wednesday, November 13
100th Annual Convention & Expo
Walter E. Washington
Convention Center
801 Mt. Vernon Place
Washington, D.C.
call (800) 793-6222
NOVEMBER 2013
Monday-Wednesday,
November 4-6
NAMB National 2013
Harrah’s Las Vegas
3475 Las Vegas Boulevard South
Las Vegas, Nev.
call (972) 758-1151
or visit www.namb.org.
15th Annual National Reverse Mortgage
Lenders Association (NRMLA)
Meeting & Expo
The Roosevelt New Orleans
123 Baronne Street
New Orleans, La.
call (202) 939-1760
or visit www.nrmlaonline.org.
Sunday-Tuesday, November 6-8
National Consumer Reporting
Association (NCRA)
2013 Annual Conference
Embassy Suites Hotel & Spa
1000 Woodward Place NE
Albuquerque, N.M.
call (630) 539-1525
or visit www.ncrainc.org.
Friday, November 15
2013 Great Northwest Mortgage Expo
Spirit Mountain Casino
27100 Salmon River Highway
Grand Ronde, Ore.
call (860) 922-3441 or e-mail
[email protected].
Tuesday-Thursday,
November 19-21
Accounting and Financial Management
Conference 2013
Boca Raton Hotel
501 East Camino Real
Boca Raton, Fla.
call (800) 793-6222
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].
FEBRUARY 2014
Sunday-Wednesday, February 2-5
CREF/Multifamily Conference & Expo
The Peabody Orlando
9801 International Drive
Orlando, Fla.
call (800) 793-6222
Tuesday-Friday, February 18-21
2014 National Mortgage Servicing
Conference & Expo
The Peabody Orlando
9801 International Drive
Orlando, Fla.
call (800) 793-6222
75
Thursday, October 17
IAAMB—Mortgage Professionals of
Iowa 2013 Convention
Stoney Creek Inn
5291 Stoney Creek Court
Johnston, Iowa
call (800) 462-0077, e-mail
[email protected]
or visit www.iaamb.net.
Saturday-Monday, October 19-21
Independent Mortgage Bankers
Conference
InterContinental Miami
100 Chopin Plaza
Miami, Fla.
call (800) 793-6222
2013 New England Women
in Banking Conference
The Hyatt Regency Newport
1 Goat Island
Newport, R.I.
call (860) 922-3441
or visit www.nebankwomen.com.
76
LOOKING FOR A
COMMITTED RELATIONSHIP?
While some of our competitors were trying to get rid of you,
AFR was figuring out ways to close more of your loans.
Conventional
- Conventional Fixed
- Freddie Mac Open Access
- Fannie Mae DU Refi Plus
(Unlimited LTV/CLTV on HARP loans)
- Manufactured Housing
VA
- Purchases and Refinances
- VA IRRRL Refinances
FHA
- FHA Streamline
- FHA Premium Plus
- FHA $100 Down
- FHA One Time Close
- FHA 203(k) and 203(k) Streamline
- FHA 203h for Disaster Victims
AFR DOES NOT CHARGE
ANY LENDER FEES!
To sign up as a TPO or Table Funded Broker,
Correspondent or Correspondent with
Delegated Underwriting Authority, call us at
888-913-3912
or online at
AFRWholesale.com
USDA
- Guaranteed Rural Housing Loan
Free Processing through AFR’s Wholesale Direct.
Call 888-913-3912 for more details.
American Financial Resources, Inc., 9 Sylvan Way, Parsippany, New Jersey 07054 • 1-888-664-2101 • NMLS # 2826 • Intended for Mortgage Professionals only.
Celebrating 15 years of exceptional service to our clients. Please visit www.afrwholesale.com for a full range of products, programs, forms and additional information.

september 2013 - National Mortgage Professional Magazine

Transcription

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