continued from page 8 - National Mortgage Professional Magazine

Transcription

O JANUARY 2011
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Mortgage PROFESSIONAL
L O U I S I A N A
MAGAZINE
Your source for the latest on originations, settlement, and servicing
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Louisiana Mortgage Lenders Association
2561 CitiPlace Court, Suite 750-177
Baton Rouge, LA 70808
Phone #: (225) 231-8588 O Fax #: (225) 231-8501
Web site: www. lmla.com O E-mail: [email protected]
OFFICERS & GOVERNORS
Phone #
E-mail
President
(225) 766-1236
[email protected]
Vice President
(225) 752-9711
[email protected]
Secretary
(337) 289-1303
[email protected]
Immediate Past President
(337) 233-1316
[email protected]
Terry LeBlanc
Sandy Whitehead
Keith Delatte
Gervy Papion
Mike Airhart, CRMS
Mike Anderson, CRMS
Tammy Balentine
Kenny Hodges
Kevin Huskins
Terry LeBlanc
Ross Miller
Matt Roth
Terry LeBlanc
Shelley Graham
Cheryl Ray
Cheryl Ray
Lori Degruise
Elise Daniel
Governor
Governor
Governor
Governor
Governor
Governor
Governor
Governor
(225) 767-7275
(225) 297-7704
(225) 292-2601
(225) 218-9746
(504) 818-0400
(225) 766-1236
(504) 455-7002
(337) 991-0816
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Delegate Council Member
Affiliate Member Representative
Affiliate Member Representative
(225) 766-1236
(225) 978-3270
(504) 909-0068
[email protected]
[email protected]
[email protected]
COMMITTEE CHAIRS
Convention Chair
(504) 909-0068
[email protected]
Membership Chair
(504) 235-6260 [email protected]
Association Coordinator
(225) 766-1236
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JANUARY 2011 O
O NationalMortgageProfessional.com
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The number one reason you should attend this
event is the satisfaction of knowing you are
doing your part to ensure that mortgage broker
issues are heard on Capitol Hill. You are the best
spokesperson for our issues. Your participation
benefits you, the industry and your clients as a
whole, by strengthening the broker’s presence in
the halls of Congress.
Key Issues in 2011 Include:
Safe Act/NMLS
• Recovery fund instead of Net Worth
and / or Bonding Requirement
• Remove the credit report requirement
from SAFE
• NMLS – Modifications
• Call Reports
MDIA
Loan Originator Compensation
Dodd-Frank Act
DOL Wage and Overtime issues
Monday-Tuesday,,
March
h 14-15,, 2011
Capitoll Skyline
e Hotel
Be prepared to go to the Hill!
Visit
www.NAMB.org/legconference
for details!
LA
3
Here are a few reasons you should attend:
Lobby Your Representatives on
Capitol Hill
“There is no better way to build relationships
with your senators and representatives than by
attending Lobby Day. Getting face-to-face with
the decision-makers who create important policy
is invaluable during such historic and unprecedented times in our industry.”
—Bill Kidwell
Don’t Miss Out on What This
Conference Has to Offer
“If you can only attend one national meeting
this year, make it the NAMB 2011 Legislative &
Regulatory Conference. It is a great opportunity
to meet with fellow NAMB members and work
together to formulate NAMB’s policy agenda.”
—Don Fader, CRMS
It’s all happening now!
Capitol Skyline Hotel
10 "I" Street, Southwest
Washington, D.C. 20024
Phone #: (202) 488-7500
www.capitolskyline.com
Special "NAMB" rates will be available for
March 13th and 14th
Includes Advocacy 101 training: General
synopsis and "Question & Answer" on the best
ways to communicate NAMB's talking points with
your congressmen in an effective manner.
Hotel Accommodations
O JANUARY 2011
Branch Manager Business Analyst Business Development Manager
Commercial Loan Officer Corporate Sales Credit Analyst Inside Sales Legal Assistant
Advisor Asset Protection Management Bank President
Client Relationship Manager Client Relationship Specialist Collateral Asset Manager
Licensing Assistant
Mortgage Loan Processor Mortgage Originator National Account Manager National Sales Rep PC Support Admin
Post Closing QC Expert Processor Regional Vice President REO Closer Retail Branch Manager Retirement Planner Reverse Mortgage Specialist Sales Manager
Loan Administration Manager
Secondary Marketing Analyst
JANUARY 2011 O
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National Mortgage Professional Magazine
TABLE OF CONTENTS
RTGAGE PRO
SSIONAL
NATIONAL
NMP
FE
January 2011
MO
MAG
AZIN
Volume 3, Number 1
COMPANY
WEB SITE
PAGE
E
Special Focus on
“Managing and Selling REOs”
FHA Insider: REO Investors … An FHA Referral Source
You Must Have in Today’s Market
By Jeff Mifsud
Remembering the REO Basics
By David Shelton
Structuring Effectively for REO Disposition
By Derrick Logan
The Need for Transparency Has Never Been Greater
By Damien Chiodo
28
29
30
31
Features
The New Solution
By Bruce Norris
Lykken on Leadership
By David Lykken
The Challenges of International Real Estate Appraisals
8
12
By Charlie W. Elliott Jr., MAI, SRA, ASA
14
11 Ideas to Ignite Your 2011
16
By Dave Hershman
The “Fatal Flaw” in HAMP
By Steven Gillan
Regulatory Compliance Outlook: January 2011 …
New Risk-Based Pricing Rules
By Jonathan Foxx
By Atare E. Agbamu
18
21
22
Forward on Reverse: FIT for Reverse Mortgage
Lenders (Part V) … Holes in the Safety Net
25
Columns
NMP News Flash: January 2011
4
18
New to Market
26
NMP Mortgage Professional Resource Directory
40
NMP Calendar of Events
44
Visit
NationalMortgageProfessional.com.
JANUARY 2011
Heard on the Street
1
NationalMortgageProfessional.com The Secondary Market Overview: From Bonds
to Production … Why Did They Go Up?
ACC Mortgage .................................................. www.weapproveloans.com ....................................8
Accurate Quality Control .................................. www.accurateqc.com ............................................7
BankFinancial.................................................. www.bankfinancial.com ........................................8
Bay Equity LLC ................................................ www.bayeq.com ..................................................38
CallFurst Conferencing...................................... www.callfurst.com ..............................................36
Calyx Software ................................................ www.calyxsoftware.com ......................................31
Comergence Compliance Monitoring, LLC .......... www.comergencecompliance.com ..................4 & 39
Digital Mail Maker............................................ www.digitalmailmaker.com ................................LA1
Elliott and Company Appraisers, Inc................... www.appraisalanywhere.com ................................20
Envision Direct ................................................ www.envisiondirect.net/catalog/mortgage.htm ......32
FindMortgageJobs.com .................................... www.findmortgagejobs.com ................................LA4
Flagstar Wholesale Lending .............................. www.wholesale.flagstar.com ....................Back Cover
Freedom Mortgage .......................................... www.fmbranch.com ......................Inside Back Cover
Frost Mortgage Lending Group .......................... www.frostmortgage.com/nmp ................................4
GSF Mortgage Corporation ................................ www.gsfprobranch.com ........................................35
Guaranteed Home Mortgage.............................. www.joinguaranteed.com ......................................9
HVCC Appraisal Ordering .................................. www.hvccappraisalordering.com ..........................19
MBA-NJ/NJAMB ................................................ www.mbanj.com ..................................................34
MortgageProShop.com .................................... www.mortgageproshop.com ..................................23
Mortgage Concepts .......................................... www.mortgageconcepts.com ................................11
Mortgage Insurance Agency .............................. www.mtgins.com ................................................31
Mortgage Planner CRM/ MPC ............................ www.mortgageplannercrm.com ............................27
Mortgage Services III, LLC.................................. www.msiloans.biz ................................................27
NAMB.............................................................. www.namb.org/legconference ............................LA3
Nationwide Equities Corp. ................................ www.nwecorp.com ..............................................37
NMLF, Inc. ...................................................... www.nmlf.us ......................................................21
Packet8 .......................................................... www.businesssurvivalcenter.com ........................LA1
PB Financial Group Corp. .................................. pbfinancialgrp.com ..............................................21
Radian Guaranty .............................................. www.radian.biz ..................................................27
REMN (Real Estate Mortgage Network)................ www.remnwholesale.com ......................................5
StreetLinks National Appraisal Services .............. www.streetlinks.com/SCORe ..........Inside Front Cover
Terrace Mortgage Company .............................. www.terracemortgage.com ..................................10
United Northern Mortgage Bankers Ltd. ............ www.unitednorthern.jobs .............................. 6 & 13
Windvest Corporation ...................................... www.windvestcorp.com ........................................15
January 2011
Volume 3 • Number 1
Mortgage PROFESSIONAL
N A T I O N A L
MAGAZINE
Your source for the latest on originations, settlement, and servicing
1220 Wantagh Avenue • Wantagh, NY 11793-2202
Phone: (516) 409-5555 / (888) 409-9770
Fax: (516) 409-4600
Web site: www.nationalmortgageprofessional.com
STAFF
Eric C. Peck
Editor-in-Chief
(516) 409-5555, ext. 312
[email protected]
Andrew T. Berman
Executive Vice President
(516) 409-5555, ext. 333
[email protected]
Domenica Trafficanda
Art Director
[email protected]
Karen Krizman
Senior National Account Executive
(516) 409-5555, ext. 326
[email protected]
2
Jon Blake
Advertising Coordinator
(516) 409-5555, ext. 301
[email protected]
A Message From NMP Media Corp.
Executive Vice President Andrew T. Berman
2011: The Year of Leadership
According to Chinese Zodiac, 2011 is the Year of the Rabbit. However, we at National
Mortgage Professional Magazine have dubbed 2011, “The Year of Leadership.” This
year, you will see the pages of National Mortgage Professional Magazine focusing on
the new leadership of the mortgage industry, as well as provide guidance and
insights for the future leaders. Sure, we still will provide tactical guidance on specific topics such as valuations and appraisals (like Charlie W. Elliott’s “The Challenges
of International Real Estate Appraisals on page 14), to secondary market (like Dave
Hershman’s “Why Did They Go Up? on page 18), default management (like Steven
Gillan’s piece, “The ‘Fatal Flaw’ in HAMP on page 21), rules and regulations (like Jonathan Foxx’s
Regulatory Compliance Outlook on page 22 focusing on “New Risk-Based Pricing Rules”) and more. But
the overall theme of National Mortgage Professional Magazine will be focusing on the newly-crowned
leaders of the mortgage industry. However, you will see more of the articles like David Lykken’s new
column, “Lykken on Leadership” on page 12. David talks about the need for leaders to step up and grab
the bull by the horns and start leading!
Managing and selling REOs
The pages of National Mortgage Professional Magazine covers everything from origination to settlement to
the servicing sector of the industry. However, we received an overflowing handful of requests to dedicate
an issue on managing and selling real estate-owned (REO) and in this issue, we deliver. Part of this was
obviously from the readers who are working at servicers; however, there was also a large number of our
production-focused readers who also want to learn more about REOs.
For production-focused readers, Jeff Mifsud’s “REO Investors ... An FHA Referral Source You Must Have
in Today’s Market” is a must-read on page 28. For a “back to the basics look at servicing, be sure to turn to
page 29 for David Shelton’s “Remembering the REO Basics.” Derrick Logan shares with us some insights on
property preservation and asset management on page 30 with his article, “Structuring Effectively for REO
Disposition.” Our REO section is wrapped up by a great commentary from Damien Chiodo on page 31 and
his piece, “The Need for Transparency Has Never Been Greater.”
11 ideas to ignite your 2011
Our first issue of 2011 also brings you the special two-page spread on pages 16-17, “11 Ideas to Ignite Your
2011.” Here, you will find some quick tips on how to ensure that 2011 will be one of your best years in the
mortgage biz.
Until next month …
Jennifer Moeller
Billing Coordinator
(516) 409-5555, ext. 324
[email protected]
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.
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 Credit
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.
MO
RTGAGE PRO
NATIONAL
NMP
SSIONAL
JANUARY 2011 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.
FE
NationalMortgageProfessional.com
ADVERTISING
To receive any information regarding advertising rates, deadlines and requirements, please contact Senior National Account Executive Karen Krizman at
(516) 409-5555, ext. 326 or e-mail [email protected].
MAG
AZIN
E
is published monthly by NMP Media Corp.
Copyright © 2011 NMP Media Corp.
Andrew T. Berman, Executive Vice President
NMP Media Corp.
The National Association of
Mortgage Brokers
National Association of Professional
Mortgage Women
11325 Random Hills Road, Suite 360
Fairfax, VA 22030
Phone #: (703) 342-5900 Fax #: (703) 342-5905
P.O. Box 451718 Garland, TX 75042
Phone #: (800) 827-3034 Fax #: (469) 524-5121
Web site: www.napmw.org
NAMB Board of Directors
Officers
President—Michael D’Alonzo, CMC
Creative Mortgage Group
1126 Horsham Road, Suite D
Maple Glen, PA 19002
Vice President—Donald J. Frommeyer, CRMS
Amtrust Mortgage Funding Inc.
200 Medical Drive, Suite D
Carmel, IN 46032
Secretary—Virginia Ferguson, CMC
Heritage Valley Mortgage Inc.
5700 Stoneridge Mall Road, Suite 225
Pleasanton, CA 94588
Treasurer—John Councilman, CMC,CRMS
AMC Mortgage Corporation
2613 Fallston Road
Fallston, MD 21047
Immediate Past President—Jim Pair, CMC
Mortgage Associates Corpus Christi
6262 Weber Road, Suite 208
Corpus Christi, TX 78413
Directors
Michael Anderson, CRMS
Essential Mortgage
3029 S. Sherwood Forest Boulevard, Suite 200
Baton Rouge, LA 70816
Olga Kucerak, CRMS
Crown Lending
222 East Houston, Suite 1600
San Antonio, TX 78205
Walter Scott
Excalibur Financial Inc.
175 Strafford Avenue, Suite 1
Wayne, PA 19087
Vice President—Central Region
Lisa Puckett
(405) 741-5485
[email protected]
President-Elect
Laurie Abshier, GML, CMI
(661) 283-1262
E-Mail: [email protected]
Vice President—Eastern Region
Christine Pollard
(646) 584-8332
[email protected]
Senior Vice President
Candace Smith, CMI, CME
(512) 329-9040
[email protected]
Secretary
Murielle Barnes, CME
(806) 373-6641
[email protected]
Vice President—Northwestern Region
Jill M. Kinsman
(206) 344-7827
[email protected]
Treasurer
Hulene Bridgman-Works
(972) 494-2788
[email protected]
Vice President—Western Region
Tim Courtney
(760) 792-5620
[email protected]
Parliamentarian
Dawn Adams, GML, CMI
(607) 737-2584
[email protected]
National Credit Reporting Association Inc.
125 East Lake Street, Suite 200 Bloomingdale, IL 60108
Phone #: (630) 539-1525 Fax #: (630) 539-1526
Web site: www.ncrainc.org
3
2011 Board of Directors & Staff
Tom Conwell
President
(248) 473-7400
[email protected]
Donald J. Unger
Vice President
(303) 670-7993, ext. 222
[email protected]
Daphne Large
Treasurer
(901) 259-5105
[email protected]
Marty Flynn
Ex-Officio
(925) 831-3520, ext. 224
[email protected]
William Bower
Director—Tenant Screening Chair
(800) 288-4757
[email protected]
Mike Brown
Director—Technology Chair
(800) 285-6691
[email protected]
Janet Curtis
Director—New Membership
& Elections Co-Chair
(212) 224-6121
[email protected]
Renee Erickson
Director—Tenant Screening Co-Chair
(800) 311-1585, ext. 2101
[email protected]
Nancy Fedich
Director—Conference Chair
(908) 813-8555, ext. 3010
[email protected]
Judy Ryan
Director—New Membership
& Elections Chair
(800) 929-3400, ext. 201
[email protected]
Tom Swider
Director—Legislative Co-Chair
(856) 787-9005, ext. 1201
[email protected]
Terry Clemans
Executive Director
(630) 539-1525
[email protected]
JANUARY 2011
Susan Cataldo
DirectorEducation & Compliance Chair
Jan Gerber
(404) 303-8656, ext. 204
Office Manager/Membership Services
[email protected]
(630) 539-1525
[email protected]
Deb Killian, CRMS
Charter Oak Lending Group LLC
3 Corporate Drive, P.O. Box 3196
Danbury, CT 06813-3196
(203) 778-9999, ext. 103 [email protected]
President
Gary Tumbiolo, CMI
(919) 452-1529
[email protected]
NationalMortgageProfessional.com Donald Fader, CRMS
SMC Home Finance
P.O. Box 1376
Kinston, NC 28503-1376
National Board of Directors
• Multiple National Lenders
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• 48 Hour Underwriting
• 100% Partner Pay Out
Zillow Study Finds Homes
Set to Lose $1.7 Trillion
in Value During 2010
A PRMI Company
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JANUARY 2011 LOUISIANA MORTGAGE PROFESSIONAL MAGAZINE
Tired of filling out
broker applications?
U.S. homes are
expected to lose
more than $1.7
trillion in value
during 2010, which
is 63 percent more than the $1 trillion
lost in 2009, according to analysis of
recent Zillow Real Estate Market Reports.
That brings the total value lost since the
market peaked in June 2006 to $9 trillion. By comparison, from 2001 to the
end of September 2010, the war in Iraq
has cost $750.8 billion, according to a
September report by the Congressional
Research Service.
The bulk of the total value lost during 2010 was in the second half of the
year. From January to June, the housing
market lost $680 billion. From June to
December, Zillow projects residential
home value losses will top $1 trillion.
Less than one-fourth (31) of the 129
markets tracked by Zillow showed
gains in total home values during
2010. Among those were the Boston
metropolitan statistical area (MSA),
which gained $10.8 billion in value,
and the San Diego MSA, which gained
$10.2 billion.
“Despite a strong start to 2010, by
the end of the year homes lost more
of their value in 2010 than they did in
2009,” said Zillow Chief Economist Dr.
Stan Humphries. “Government interventions like the homebuyer tax credit helped buoy the market during the
second half of 2009 and the first half
of 2010, but we saw a renewed downturn in the last half of this year. It’s a
testament to the nearly irresistible
force of the overall market correction
that government incentives can only
temporarily hold back the tide, and
that the market will ultimately find its
natural equilibrium of supply and
demand. Unfortunately, with foreclosures near an all-time high in late
2010 and high rates of negative equity persisting, it does not appear that
the first part of 2011 will bring much
relief.”
Declines in home values have led to
increases in the percentage of homeowners in negative equity. At the end of
2009, 21.8 percent of single-family
homeowners with mortgages were in
negative equity, meaning they owed
more on their mortgage than their
home was worth. In the third quarter of
2010—the last time Zillow calculated
negative equity—23.2 percent were
underwater.
For more information, visit www.zillow.com.
NRMLA Announces New
Certified Reverse Mortgage
Professional (CRMP)
Designation
Consumers interested
in exploring reverse
mortgages can now
turn to a loan originator who has committed to a new, high standard of training
with the implementation of the
Certified Reverse Mortgage Professional
(CRMP) designation by the National
Reverse Mortgage Lenders Association
(NRMLA). After two years of preparation, NRMLA awarded CRMP designations to a first class of 13 members at its
Annual Meeting & Expo on Nov. 3 in
New Orleans. With the support of its
board of directors and membership,
NRMLA has invested more than
$200,000 to create the program.
“In our ongoing effort to assure
America’s seniors that they can borrow
with confidence from a NRMLA lender,
we have made a significant investment
of both human and financial resources,
and created a rigorous program focused
on solid experience, continued education and ethical training,” said Peter
Bell, NRMLA president.
Eligibility to apply for a CRMP designation requires that a loan originator
have at least two years of experience
and closed 50 reverse mortgages. Only
then can they enter the process which
includes 12 hours annually of continued education, participating in a threehour interactive ethics training seminar, a background check and sitting for
an exam. The certification is valid for
three years, but a designee must recertify every year and obtain 12 hours of
continuing education credits annually
over that period.
The CRMP designation process was
designed in collaboration with
Professional Testing Inc. of Orlando,
Fla., international experts on creating
licensure and certification programs.
The program is administered by an
Independent Certification Committee
comprised of NRMLA members that
oversee the establishment of criteria,
eligibility, testing and recertification. In
accepting their responsibility in governing this credentialing organization,
committee members must understand
that their fiduciary responsibility
includes safeguarding the public’s trust
through the administration of a credible credential and in exercising due
diligence to uphold the integrity of the
certification program.
For more information, visit www.nrmlaonline.org.
Shadow Inventory Rises
More Than 10 Percent in
One Year According to
CoreLogic Study
Photo credit: Comstock
WE
ARE
TransUnion: Mortgage
Delinquencies Expected
to Experience Double
Digit Decreases
Through 2011
TransUnion
has released its
annual forecasts on consumer credit, which indicate
that national mortgage loan delinquencies (the ratio of borrowers 60 or more
days past due) will drop nearly 20 percent by the end of 2011 to 4.98 percent from an expected 6.21 percent at
the conclusion of 2010. The projected
decrease in 60-day mortgage delinquencies, a statistic generally considered a precursor to foreclosure,
would more than double the 9.87
REMN
percent yearly decline that is expected between the end of 2009 and 2010
(from 6.89 percent to 6.21 percent).
This is a welcome contrast to the
year-over-year increases of 54 percent between 2006 and 2007, 53 percent between 2007 and 2008 and 50
percent between 2008 and 2009.
TransUnion is projecting doubledigit declines in mortgage delinquencies for every state and the District of
Columbia through 2011. Interestingly,
the states projected to experience the
greatest decreases in mortgage delinquencies—Nevada (-24.77 percent), Arizona
(-24.27 percent) and Florida (-23.90 percent)—are the same areas expected to
continued on page 7
WHOLESALE
5
At REMN, we understand that there’s nothing
ordinary about focusing on what’s important:
our customers. We recognize that continued
lifeblood of our business. We believe that every
application is precious and treat each file with
the respect – and urgency – it deserves.
Even better, at REMN, same-day approvals
are guaranteed. We promise extraordinary
service in an ordinary world.
Learn more at www.remnwholesale.com
Real Estate Mortgage Network, Inc. is located at 499 Thornall Street, Second Floor, Edison, NJ 08837. NMLS #6521. This information is for use by mortgage professionals only and should not be distributed to or used by consumers or third
parties. Information is accurate as of date of printing and is subject to change without notice.
JANUARY 2011
* Same-day decisions guaranteed if file is received by 11 a.m. EST.
We’re not
afraid to be
different.
business from our satisfied customers is the
NationalMortgageProfessional.com CoreLogic, a provider
of consumer, financial and property
information and business services, has
reported that shadow inventory of residential property as of August 2010,
reached 2.1 million units, or eight
months worth of supply, up from 1.9
million, or a five-months supply, from
one year earlier. With visible inventory
remaining flat at 4.2 million units, the
change in shadow inventory increased
the total supply of unsold inventory by
three percent.
CoreLogic estimates shadow inventory, sometimes called pending supply,
by calculating the number of properties
that are seriously delinquent (90 days
or more), in foreclosure and real estateowned (REO) by lenders and that are
not currently listed on multiple listing
services (MLSs). Shadow inventory is
typically not included in the official
metrics of unsold inventory.
According to CoreLogic, the visible
supply of unsold inventory was 4.2 million units in August 2010, the same as
the previous year. The visible inventory
measures the unsold inventory of new
and existing homes that were on the
market. The visible months’ supply
increased to 15 months in August, up
from 11 months a year earlier due to
the decline in sales during the last few
months.
The total visible and shadow inventory was 6.3 million units in August,
up from 6.1 million a year ago. The
total months’ supply of unsold homes
was 23 months in August, up from 17
months a year ago. Although it can
vary and it depends on the market
and real estate cycle, typically a reading of six to seven months is considered normal so the current total
months’ supply is roughly three times
the normal rate.
“The weak demand for housing is
significantly increasing the risk of
further price declines in the housing
market,” said Mark Fleming, chief
economist for CoreLogic. “This is
being exacerbated by a significant
and growing shadow inventory that
is likely to persist for some time due
to the highly extended time-toliquidation that servicers are currently experiencing.”
In its analysis, CoreLogic also found
that the highest levels of distressed
months’ supply, which is the ratio of
the number of properties that are 90plus days or more delinquent to the
number of sales, are in Florida,
Michigan, and California. Although
Phoenix and Las Vegas have high
months’ supply of total housing inventory, they are not among the markets
with the highest distressed months’
supply because of the increased number of distressed sales that have been
occurring in those markets. The markets with the lowest distressed supply
are all in Texas, which largely
bypassed the housing boom and subsequent bust.
For
more
information,
visit
www.corelogic.com.
At United Northern, we give you the freedom to originate and succeed with our winning team.
About working with United Northern Mortgage Bankers
• Ongoing training and consultation with top industry executives • An in-house team to monitor SAFE Act compliance
• Access to in-house marketing services
• In-house underwriting
• Pricing support desk to ensure maximum profitability on each
• Most loans underwritten in 24 to 48 hours
loan, while maintaining a competitive advantage over the street
• Multiple valuation tools to research value
• Proven leading-edge technology (built on Encompass 360
• In-house valuation desk to help ensure accurate
technology)
values and responsive turnaround time
• Virtual office support
• Multiple established warehouse lines
• Licensing and regulatory compliance services
Limited room available for established Team Leaders and
Licensed Mortgage Originators. Become part of an
established 30-year Mortgage Banker with
a proven track record and success.
Learn about the great opportunities
available by making an appointment with
United Northern Mortgage Bankers Executive
Vice President Julio de Cardenas by calling
888-600-8808, ext. 1 or by e-mailing [email protected].
United Northern Mortgage Bankers, Ltd. Corporate NMLS ID# 7230 New York State Banking Dept. - Licensed Mortgage Banker – License #100724 New Jersey Dept. of Banking and Insurance – Mortgage Lender – License #L0046623 Pennsylvania Dept. of Banking – Mortgage Lender – License #20887 Connecticut Dept. of Banking - Mortgage Lender - License #20372 Massachusetts Div. of Banks and Loan Agencies - Mortgage Lender & Mortgage Broker – License #MC5070
North Carolina Commissioner of Banks – Mortgage Lender – License #L140365 South Carolina State Board of Financial Institutions – Supervised Lender – License #S7,461 Florida Dept. of Financial Institutions - Mortgage Lender - License
#ML0700679 Senior Security Home Advantage is a lending area of United Northern Mortgage Bankers, Ltd. Direct FHA Endorsed Lender
news flash
continued from page 5
have the highest 60-day mortgage delinquency rates at the end of next year
(Florida—11.06 percent; Nevada—
10.87 percent; Arizona—7.59 percent).
North Dakota (1.12 percent), South
Dakota (1.80 percent) and Nebraska
(2.05 percent) should continue to
rank among the states with the lowest
delinquency rates at the end of next
year.
“We believe the nation will experience an improvement in mortgage
delinquencies during 2011,” said Steve
Chaouki, group vice president in
TransUnion’s financial services business unit. “This will be driven by a
slowly improving unemployment picture and continued stabilization in
housing prices. While there is continued price pressure in many markets,
we expect a growing number of areas
of the country to experience a rise in
property values along with some stabilization of values in those states and
markets hardest hit by the recession.”
For more information, visit www.transunion.com/trenddata.
Mortgage Fraud SARs
Rise Seven Percent in the
First Half of 2010
continued on page 9
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Quality Control Services • Training • Consulting
7
JANUARY 2011
Just days after U.S.
Department of Housing
& Urban Development
(HUD) Secretary Shaun
Donovan presented
Congress with its annual report on the
financial status of the Federal Housing
Administration (FHA), the George
Washington University Center for Real
Estate and Urban Analysis has announced
a new research project whereby the
Center will release a series of reports analyzing the FHA.
Entitled, “FHA Assessment Report:
The Role and Reform of the Federal
Housing
Administration
in
a
Recovering U. S. Housing Market,” the
report series seeks to analyze and
interpret FHA reforms underway to
improve the agency’s performance. In
2010, Congress made several reforms
to the FHA to better manage risk amid
growing demand for FHA-insured mortgage loans. As the 112th Congress convenes in January, the reports will evaluate FHA residential mortgage activity
and examine steps the agency is taking
or may consider to ensure its long term
viability, while fulfilling its goals of
enabling low and moderate income
home buyers to qualify for mortgage
financing. The project will be undertaken by Dr. Robert Van Order Ph.D. at
the George Washington University
School of Business and chair of the
Center for Real Estate and Urban
Analysis, Vanessa Perry, associate professor of marketing and Anthony Yezer,
professor of economics.
“The FHA served a critically important role in the economic downturn to
ensure that low downpayment lending
continued, but, as in past cycles, there
is concern that current policies may
push the FHA toward instability,” said
Dr. Van Order. “Steps have been taken
to manage risk, but there are many
components of the system and no one
Are You Aware Of...
References to bankruptcy in SARs
have steadily increased, rising to
George Washington
University Study
Examines the FHA
NationalMortgageProfessional.com The Financial Crimes
Enforcement Network
(FinCEN) has released
two mortgage fraud
reports entitled Mortgage
Loan Fraud SAR
Filings, which together cover the first
six months of 2010; one report covers
January through March 2010, and the
other covers April through June 2010.
Taken together the reports show that
suspicious activity reports (SARs) indicating mortgage loan fraud (MLF)
climbed seven percent, rising to 35,135
in the first half of 2010 compared with
32,926 in the first half of 2009. In part,
the increase can be attributed to
increased attention to older loans
spurred by repurchase demands. In the
first quarter of 2010, 78 percent of
reported activities occurred more than
two years prior to filing, compared with
44 percent in the same period of 2009,
showing a continued focus on loans
originated from 2006-2008.
“SARs are one of the most important
sources of lead information for mortgage fraud investigations available to
law enforcement,” said FinCEN Director
James H. Freis Jr. “As a member of the
President’s Financial Fraud Enforcement
Task Force, FinCEN remains active with
law enforcement and other partner
agencies in the task force to provide
lead information and to identify potential abuses in order to combat mortgage
loan fraud.”
Other key findings of FinCEN’s latest
reports include:
seven percent of MLF SAR filings in
2010, compared to one percent in
2006 and 2007.
SAR reports referencing “short sale”
and “broker price opinion”
appeared 827 times and 41 times in
SARs respectively during the first
quarter of 2010. Short sales and broker price opinions mentioned in
SARs are sometimes associated with
a particular type of flipping scheme
known as “flopping.” Flopping
occurs when a foreclosed property is
sold at an artificially low price to a
straw buyer, who quickly sells the
property at a higher price and pockets the difference.
For
more
information,
visit
www.fincen.gov.
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8
Homeownership has lost its luster. Need proof? Pick
up a newspaper or ask any Jane on the street; you’ll
soon figure out the industry is not viewed in a particularly good light these days.
You’ll also figure out that everyone has a fix, like
scrapping interest rate deductions or requiring a 20
percent downpayment—which is great if you want
homeownership to decline another 10 percent, as
history suggests they would.
Here’s another idea you’ll hear: “Simply wait ... I
can hear a stampede of buyers just around the corner.”
Yes, there are some who still speak of the mythi“… our woes can be
cal pink unicorn that is pent-up demand. As if during
solved by thinking
this time of record-breaking bad news of delinquenoutside of the box and cies, unemployment, underwater homeowners, etc.,
getting to the root of
there is a reserve of money-hungry homebuyers
the problem: Creating waiting for the stars to align before they break out
their checkbooks.
sufficient capable
Not so. In truth, we have the least capable and
demand for the comleast willing group of buyers since the Great
ing inventory.”
Depression.
But despite all of this, our woes can be solved by
thinking outside of the box and getting to the root of the problem: Creating sufficient capable demand for the coming inventory.
Before we begin, just a quick note: Your first instinct will be to dismiss this idea
as pure nonsense. Give it a chance. If these suggestions were implemented, we’d
have the housing problem whipped in 24 months—and those in the business of
making loans would have all the clients they could handle.
Here’s the plan: For the next two years, we create a zero-down loan program
with two special features that will assure it creates virtually no foreclosures. The
loans, of course, would require real qualifying—thus avoiding more garbage
paper.
First, let’s start with our target demographic. In the chart below, you’ll notice
that the under-35 group has the smallest percentage of homeownership. That
being the case, their credit is the least damaged coming out of the housing crash.
(You can’t lose what you don’t own.)
Homeownership rates by age of householder
Apartment
Apartment
Lending
Lending
n is our bus
business.
siness.
$250M to $2MM*
$250M
Up to 75% loan-to-val
loan-to-value
ue
ms
Competitive
Com
mpetitive rates, fees and ter
terms
Over
Ove
er 60 years combi
combined
ned exper
experience
rience in
multi-family
mul
ti-family financing
*Larger
*Lar
gerr loans considered on a case-by-case
case-by-case basis.
Source: U.S. Census Bureau
Call us with
Call
with your
your next
nex t renewal.
renewal. We’re
We’re
ccommitted
ommitted ttoo hhelping
elping yyou
ou cclose
lose tthe
he bbest
est deal.
deal.
Vivian
V
ivian Madey
630-242-7251
vmadey@ba
bankfinancial.com
nkfiinancial.com
A
Austin,
, San Antonio
Antonio,, Dallas/F
Dallas/Fort
or t W
Worth,
or
o th, Den
Denver,
ver
er, Salt Lak
Lakee City
Jonathan
Jonatha
n Willems
Willems

630-242-7249
jwillems@ba
bankfinancial.com
nkfiinancial.com
Baltimore,
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e , Philadelphia, Kansas City,
Cityy, St. Louis,, Raleigh/Durham
Jennyfer Col
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bankfinancial.com
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Columbus,
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Minneapolis/St. Paul, Oklahoma
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1-800-894-6900
www.bankfinancial.com
Member
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mber FDIC
FDIC
With zero-down and an interest rate of five percent or less, many would see their
monthly obligation actually decrease. By leaving the variable (and often accelerating) rental market in favor of fixed housing costs, over time, this payment would
shrink. It’d almost feel like a car payment, freeing up money for other consumer
purchases. In short, they would be enjoying the American dream.
But what about “virtually no foreclosures,” you’re wondering? Good question. In the
highly unlikely event that 10 percent of the borrowers stopped making their housing
payment, lenders wouldn’t lose a dime. They’d simply move the loan to someone willing to cover the missed payments and assume the remaining loan balance.
Once upon a time, the Federal Housing Administration (FHA) had something
called “simple assumption.” (Never was anything more perfectly named.) The new
Helping
He
elping you do more.
more .
continued on page 10
news flash
part should become overextended. Our
research project will take a close look
at some of the tough questions: Should
FHA’s loan limits remain at pre-housing
crash levels? How should FHA limit risk
to the fund? What products should FHA
insure? What types of borrowers should
FHA serve?”
Secretary Donovan recently presented Congress with its annual report on
the financial status of the FHA Mutual
Mortgage Insurance Fund. The independent actuarial analysis contains
projections of the capital reserve ratio
of the FHA MMI Fund, which, in recent
years, has been below the congressionally mandated two percent ratio. This
year’s report found that the MMI fund
ratio has changed minimally; at 0.50
percent today, down from the 0.53 percent in fiscal year 2009. The decline
over last year is the result of a drop in
performance of the Home Equity
Conversion Mortgage (HECM) business
(which has a negative ratio) that was
largely offset by improvement in the
single-family portfolio from 0.42 percent to 0.79 percent (before the transfer of 0.20 per cent to the HECM
account).
For
more
information,
visit
business.gwu.edu/creua.
operations like these, and state and
federal law enforcement partners have
brought hundreds more.
The most significant consumer protection under the FTC’s new rule is the
advance fee ban. Under this provision,
mortgage relief companies may not collect any fees until they have provided
consumers with a written offer from
their lender or servicer that the consumer decides is acceptable, and a written document from the lender or servicer describing the key changes to the
mortgage that would result if the con-
sumer accepts the offer. The companies
also must remind consumers of their
right to reject the offer without any
charge.
The MARS Rule requires mortgage
relief companies to disclose key information to consumers to protect them
from being misled and to help them
make better informed purchasing
decisions. In their advertising and in
communications directed at individual
consumers (such as telemarketing
calls), the companies must disclose
that: They are not associated with the
government, and their services have
not been approved by the government
or the consumer’s lender; the lender
may not agree to change the consumer’s loan; and if companies tell
consumers to stop paying their mortgage, they must also tell them that
they could lose their home and damage their credit rating.
Companies also must explain in
their communications to consumers
that they can stop doing business with
the company at any time, can accept
or reject any offer the company
obtains from the lender or servicer,
and, if they reject the offer, they don’t
have to pay the company’s fee. The
companies also must disclose the
amount of the fee.
The FTC rulemaking proceeding was
conducted pursuant to Congressional
legislation sponsored in 2009 by Sens.
You've decided to look
at Branching Opportunities!
With all the NEW PLAYERS entering the market, it's not an easy decision.
There are several options, but are they EXPERIENCED AT BRANCHING?
FTC Issues Rule to Protect
Struggling Homeowners
From Foreclosure Rescue
Scams
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EXECUTIVE OFFICES:
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JANUARY 2011
CALL:
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WHO WOULD YOU TRUST WITH YOUR LIFE?
NationalMortgageProfessional.com Homeowners will be protected by a new Federal
Trade Commission (FTC)
rule, the Mortgage
Assistance Relief Services
(MARS) Rule, that bans providers of mortgage foreclosure rescue and loan modification services from collecting fees until
homeowners have a written offer from
their lender or servicer that they decide is
acceptable.
“At a time when many Americans
are struggling to pay their mortgages,
peddlers of so-called mortgage relief
services have taken hundreds of millions of dollars from hundreds of thousands of homeowners without ever
delivering results,” said FTC Chairman
Jon Leibowitz. “By banning providers of
these services from collecting fees until
the customer is satisfied with the
results, this rule will protect consumers
from being victimized by these scams.”
The FTC is issuing the MARS Rule to
protect distressed homeowners from
mortgage relief scams that have sprung
up during the mortgage crisis. Bogus
operations falsely claim that, for a fee,
they will negotiate with the consumer’s
mortgage lender or servicer to obtain a
loan modification, a short sale or other
relief from foreclosure. Many of these
operations pretend to be affiliated with
the government and government housing assistance programs. The FTC has
brought more than 30 cases against
9
the new solution
buyer put $35 in the mail and the loan was transferred from the current owner to
the new owner; no formal qualifying or assumption paperwork required. The only
stipulation was that the loan be made current. Simple indeed.
Let’s take a look at a typical example, with a property that has a $150,000 loan
at five percent interest:
$805 (principal and interest) + $195 (taxes and insurance) = $1,000 monthly payment
Assume the owner is three months behind when the lender gives notice of its
intent to start foreclosure. Instead of losing the home, the owner finds someone
willing to make the payments current and deeds them the property. The lender is
made whole, and the new owner goes from being a renter to a homeowner.
Take a look at this foreclosure chart. How many buyers do you think might
jump at the chance to own a home—without having to formally qualify?
Trustees deeds recorded: Southern California
10
!"
"
"
Source: Real Estate Research Council of Southern California, Cal Poly Pomona
There are record numbers of former owners whose credit was damaged credit in
the past few years. Each is a family who lost property to foreclosure, and they’re
perfect candidates to again become homeowners via simple assumption.
Of course, no lender will make them a new loan because of their credit history. But
that doesn’t necessarily make them a risk to lose another home. If they’re able to bring
five to 10 percent cash to the deal, they have “skin in the game.” Not only have they made
a substantial financial commitment, but they are overjoyed to get a chance to own again.
Only this time, their payment is less than rent.
As an aside, didn’t we just have a zero-down homeownership program when we gave
an $8,000 tax credit to the buyer of a $100,000 house? Buyers didn’t need $8,000 to close
escrow, so in essence, that’s a zero-down purchase. The problem is that the loan cannot
be easily transferred in case of a default, and that loan program will create foreclosures
on top of the $8,000 bill for each sale. The tax rebate program created artificial demand.
My nothing-down program would create real demand and permanent benefits.
Overjoyed-ness aside, it’s possible that the new owner could stop making loan
payments. They hide their head in the sand and the lender takes the property to
a trustee sale. Bad news.
Or is it? Under this system, the opening bid at the trustee sale will only be the
late payments and fees—not the entire principal amount plus late charges and
everything else. On our hypothetical $150,000 loan, the back payments wouldn’t
exceed $7,000 and the fees $2,000.
By show of hands, how many investors would pay $9,000 for a chance to own
a positive cash flow rental with five-percent financing for 30 years?
I am an investor, I can tell you the number would be unlimited. What’s more,
each property would likely see overbids, which normally go to the owner.
For this loan program, however, borrowers who default get none of the overbid. Call
it “provisional ownership.” If they live rent-free for six months, that’s reward enough. Let
the overbid fund an insurance policy that backs any losses for the new loan program.
One important element is to allow the participation of Realtors. Give them the
assurance that the former owner will have no residual liability by allowing the
loan to transfer to the new owner. This would assure huge demand for the inventory across all price sectors of the market. It would also save the lenders a ton of money.
Instead of foreclosing and losing money, the loan will be brought back in good standing; just with a different owner’s name. For the time being, the lenders should care
more about having a loan payment being made than whose name is on the check.
“HELPING YOU MAKE IT HOME”
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By David Lykken
12
I am going start off with a bold assertion that “we” (our nation and our
industry) are facing a serious leadership crisis. I am also going to assert
that this is the result of the unusual
and extended season of prosperity and
“good times” we have enjoyed from
1996 through 2006. It has been my
observation that in times of great prosperity such as this period, we rarely see
new leadership emerge. If anything,
leadership development seems to go
into remission. That is not to say that
there are new potentially strong leaders walking among us, but the absence
of a perceived or real crisis doesn’t
seem to foster or allow an opportunity
for those leaders to emerge … i.e., the
need for their existence did not exist
(or so we thought). Regrettably, the
catalysts for leaders to arise seems to
be when we have the emergence of a
new crisis. I will even assert that when
we, as a society, have extended periods
of great prosperity as we have become
confused on what strong leadership
looks like.
“Overindulgence, greed and
materialism cause us as a society
to become lazier, more complacent
and less disciplined … the
characteristics opposite of true
leadership. In fact, capitalism that
gives way to excess is an enemy to
leadership development.”
For those of you questioning this,
consider this question: During your
life, when have you experienced your
greatest times of development and
growth? Isn’t it during those unpleasant seasons when you’re going through
some difficulty that feels like a crisis?
There is no question that we all
enjoy the good times and want them
to continue for as long as possible. But
when you do a honest analysis of what
actually happened during the decade
between 1996 and 2006 where we all
enjoyed such an extraordinary extended time prosperity, we witnessed our
nation increasingly subscribe to the
mistaken notion that “greed is good”
and “he who dies with the most toys
wins.” Overindulgence, greed and
materialism cause us as a society to
become lazier, more complacent and
less disciplined … the characteristics
opposite of true leadership. In fact,
capitalism that gives way to excess is
an enemy to leadership development.
Economists have said that we entered
the current recession in December,
2007, and some would suggest that we
have begun to emerge from that recession. Whether we are or not, having
unemployment hovering around 10 percent and the most recent Case-Shiller
report advising that some real estate
markets are likely going to experience a
double-dip in housing prices, there’s no
question that the good times are over.
Most economists advise that we are no
longer in a recession and have begun a
recovery, albeit a modest recovery.
Others are not so easily convinced, suggesting that things are going to get much
worse before they get any better. If the
latter is true, could this actually be a
blessing in disguise? Or maybe another
way to look at it is the old expression
“where is the pony in this pile” (my
apologies if you haven’t heard the story
with that as the punch line). If it is true
that we are heading into more troubled
economic times, than the topic of “leadership” and “leadership development” is
more critical now than ever. It is for this
reason that I have chosen to write a new
series of articles on leadership. It is my
hope that you will enjoy and benefit
from reading this column in the months
ahead. Whether we have an economic
downturn or an economic recovery, it is
important either way to develop the
leaders amongst us. Good leadership is
key to our future and survival as an
industry and as a country.
If I were to ask you to quickly start
naming list of some of the greatest leaders in history, what names would come
to mind? Would names like George
Washington, Abraham Lincoln, Winston
Churchill, Gen. Douglas MacArthur,
Martin Luther King, Nelson Mandela,
Golda Meir or Mahatma Gandhi come to
mind? For those who are more sportsminded, names like Vince Lombardi or
John Wooden might come to mind. In
reality, it wouldn’t be very difficult for
most of you to quickly compile a list of
individuals you consider to be leaders.
Now, if I were to ask you to give me
a list of the qualities that make for a
great leader, I dare say that most would
find that exercise a bit more challenging. Why is that? Most of us immediately recognize leadership when it shows
up. However, when you asked most of
us to logically explain or identify what it
is about someone that makes that person a leader, we struggle. Leadership is
something that we intuitively or instinctively recognize when experienced. It is
not something we arrive at logically.
Okay, now let’s take this discussion to
the mortgage industry. If I were to ask
you who is or has been a great leader in
the mortgage industry, who comes to
mind? With “tongue-in-cheek” I ask,
“Does anyone come to mind?” If some
names do come to mind, ask yourself:
“Why do I consider these people leaders?” As I suggested at the opening of
this article, many years of prosperity
skews our definition of what makes for a
strong leader. When I ask myself the
question, “Who in the mortgage industry
do I consider to be a leader” … I struggle for an answer. Several individuals
surface in my thinking; however, recent
revelations about some of these individuals’ lack of character cause me to say to
myself, “You know, they may not have
been the leader that I thought they
were.” History has a tendency to qualify
or disqualify genuine leadership.
Allow me if you will, to share a personal story about someone influential
early in my career. When I started my
career in mortgage lending, one of the
very first bosses I had seemed like anything but a leader. To say that “we didn’t
start off on the right foot” is an understatement. From my perspective, he
seemed to enjoy making my life miserable. I was right out of college, and in
hindsight, I now recognize that I was definitely “rough around the edges,” but I
had an intense desire to succeed in mortgage lending. The harder I tried, the
more difficult this new boss seemed to
get. He was rough on me, and from my
perspective, was harder on me than anyone else. I just assumed he didn’t like me
and there was nothing I could do about
it. Nonetheless, he was extremely really
good at what he did and I wanted to
learn from one of the best, so in my
mind, I was going to put up with him.
With that attitude, there’s no telling what
he was thinking about me at the time.
However, it wasn’t long before I realized
I was growing and getting better and better. It wasn’t too long that I started getting promoted and eventually started
receiving job offers from the competition, some of which were really attractive
offers. To my own amazement, every
time I was offered a bigger salary or “better opportunity,” I chose to stay put.
While we never grew close, I had grown
to respect boss as a leader. I saw mortgage lending as my long-term profession
and my desire to grow and be mentored
by one of the best in the business
exceeded anything else. As a result, I
ended up staying with that company for
a number of years despite numerous
attractive offers from competitors.
For that company for whom we
both worked, my boss’ good leadership
paid great dividends for me and the
company we worked for, as I stayed
there and produced a good amount of
revenue for that company. Leadership
does matter. I had the privilege of
reconnecting with that old boss many
years later after he had retired and a
short time before he passed away. I
found myself getting somewhat choked
up as I thanked him for all he had done
in the early days of my career. I cannot
tell you how many times I have looked
back and appreciated his contributions
to my career and my life. Leadership may
not yield friendship, even though I wish
it had in this case, but it did yield dividends well beyond this man’s time on
this earth. Here’s the point of me telling
you this story. History and time provides
us with the best “optics” to clearly
see/recognize the leaders in our lives.
“History has a tendency to qualify
or disqualify genuine leadership.”
Here are the questions I now have
for you, “Do you want to be a leader?”
“Do you see yourself as a leader or a
potential leader?” To make the point
more clearly, let me rephrase the question this way, “Do you want to be successful in this business?” If you do, you
MUST learn how to become a GREAT
leader. That is what this series of articles is going to be dedicated to accomplishing … developing great leaders. I
believe we are entering a season where
those who have developed strong leadership skills will not only prosper and
do well, but will also have amazing
opportunities for growing strong companies that will dominate the next market cycle.
While speaking at the Mortgage
Bankers Association (MBA) Annual Expo
in Atlanta late last fall, I made the following prediction and it bears repeating as I start this new series of articles
on leadership:
“One of the most interesting things about
2011 will be which companies survive
and thrive, and which ones will fail. The
primary determining factor between success and failure in the days ahead will be
‘leadership’ or the lack thereof.”
Again, I look forward to writing on
the topic of leadership each month in
this publication in the year 2011. It is my
hope and prayer that 2011 will be your
best year ever. Again, happy new year!
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) 9779900, ext. 101 or e-mail [email protected].
To listen to author David
Lykken’s online radio show,
log on to www.blogtalkradio.com and type in “Lykken
on Lending” in the “Search” box on
the right-hand side of the page.
recognizes the support of those Mortgage
Professionals who have stepped up to pay tribute
to the men and women who have fought to
preserve freedom for our great country.
We will be featuring these Mortgage Professionals in our Mortgage
Heroes feature in National Mortgage Professional Magazine.
We want to hear from you if you:
# Make significant donations to any veteran's organizations
# Hosts or sponsors events recognizing and paying tribute to veterans
# Provides support for the families of veterans
# Any other noteworthy assistance to help improve the lives of
veterans and their loved ones
To be considered for Mortgage Heroes, visit
NMPMag.com/mortgageheroes.
13
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• Production Manager
Compare that to today’s typical downpayment requirement for investors: 20 to
30 percent with a limit of 10 loans, which eliminates the best and brightest
investors from helping with the economic recovery. If this new loan program would
be allowed, investors would be able to prevent a foreclosure from happening and
get better financing than they could anywhere else ... and in unlimited quantity.
The more buyers are interested in a property, the higher the bid would go.
Then, take the overbid and build a fund to do something worthwhile … fund
Habitat for Humanity or green building, etc.
Now, do you still think this nothing-downpayment idea is ridiculous?
• Operations Manager
NationalMortgageProfessional.com First, it gets young adults involved in homeownership much earlier than normal. This creates part of the demand we need to turn the percentage of homeownership headed in a positive direction.
Second, when a borrower defaults on this new loan program, it actually allows
a former owner to once again own a home. All they have to do is make the loan
current and record a grant deed. Call it forgiveness or amnesty or a failing longterm memory, but the group of credit-damaged former owners is huge and
needs to be considered. (And there’s no way the new program would generate
enough foreclosures to fill the demand—that’s a guarantee.)
The third way is taking the property to a trustee sale with an opening bid of
only the back payments and fees. Buyers, with cashier’s checks in hand, bid
against other trustee sale buyers. The starting bid is the total of the late payments plus foreclosure costs, not the principal under this new loan program
(approximately six percent of the balance of the loan.
news flash
By Charlie W. Elliott Jr., MAI, SRA, ASA
The Challenges of International
Real Estate Appraisals
Jay Rockefeller and Byron Dorgan. The
Final Rule applies only to entities within the FTC’s jurisdiction under the
Federal Trade Commission Act, which
excludes, among others, banks, savings
and loans, federal credit unions, common carriers, and entities engaged in
the business of insurance. In June
2009, the FTC issued an Advance
Notice of Proposed Rulemaking seeking comment on the practices of forprofit mortgage relief companies. In
February 2010, the FTC announced a
Notice of Proposed Rulemaking and
sought comments from interested persons, including advocates for consumers, the business community, and
the legal profession.
For more information, visit www.ftc.gov.
Ginnie Mae Reports
Increases in Revenue,
Recently, I had the opportunity to per- not uncommon for a lender to com- Net Income and Loan
form an appraisal in Costa Rica. The plain about an appraiser traveling 30 Loss Reserves in 2010
14
function of the appraisal was to evaluate miles to do an appraisal, especially if
a property to be used as collateral for a the results do not turn out to favor the
mortgage loan; in much the same way as closing of a loan transaction. When this
it would be done here in the United is contrasted to the traveling of hunStates. While Costa Rica is a foreign coun- dreds or even thousands of miles, the
try and offers many differences, it has question would likely seem more apromuch in common with our country, if for pos. My response to such a question is
no other reason than that much of the that it is better for a proven professionreal estate there is owned
al to perform an appraisal
by United States citizens.
in a somewhat unfamiliar
Actually, the client on the
territory than assigning
project was a United
the task to a local person
States-based bank and the
who lacks the qualificaproperty owner was a
tions to perform the
United States citizen.
appraisal correctly. Many
The fact that the
countries, including Costa
assignment was in anothRica, do not have licensed
er country did not relieve
real estate brokers or cerme of the obligation of
tified real estate appraispreparing a professional
ers. Furthermore, the proappraisal. While the client
fessional appraiser from
“While geographic
making the loan will have
another country would
collateral outside the
unfamiliarity offers
likely be ill-equipped to
country, the lending regu- the traveling apprais- follow the requirements
lations are the same, if not
of an appraisal used for a
er a challenge, permore stringent, and there haps one of the biggest mortgage loan in this
is every expectation that
country. USPAP would be
obstacles for the
the appraisal conform the
unknown to such an indiUniform Standards of appraiser to overcome vidual, and this is the
in less developed
Professional Appraisal
basic requirement of any
areas,
whether one is appraisal used for collatPractice (USPAP), a very
local or from out of
U.S. requirement. That
eral here.
having been said, it would
To carry the subject a
town, is finding a
be fair to point out that
bit
further, it is not unususource of reliable
appraising property in
al
for
a certified appraiser
market data.”
other countries, especially
to cover more geographic
countries with fewer or different regula- territory for more unusual or demandtory requirements, offers challenges over ing assignments. The fewer local profesand above those that appraisers are typ- sionals there are available to perform a
ically subjected to when appraising in task, the more need there is to bring in
the United States.
a professional from a greater distance.
Before getting into some of the spe- This is especially true for appraisals of
cific challenges, one of the questions commercial properties. The challenge of
that I am sometimes asked in doing following USPAP alone would seem
such an appraisal is: “How would you almost insurmountable to an outsider
know enough about the area to do an not steeped in the education and reguappraisal there? This brings up a sub- latory environment of our country.
ject typically referred to as “geographic
competence.” In the United States, it is
Ginnie Mae has reported revenues of more
than $1 billion for fiscal year 2010, up from
$657.3 million in
2009. The increased
revenues are driven primarily by
increases in guaranty fee income and
interest income. Net income for 2010
reached $541.5 million, surpassing the
$509.6 million net income total for
2009. The company increased its provisions for loan losses to slightly more
than $1 billion in 2010, up from $559.9
million in 2009.
“Given the continued slow pace of
growth in the U.S. economy, Ginnie
Mae’s increase in both revenue and net
income is quite an accomplishment,”
said Ginnie Mae President Ted Tozer.
“This year we’ve increased our loan loss
reserves, and we believe this increased
provision is more than sufficient to offset losses on servicing portfolios taken
over by Ginnie Mae due to Issuer
defaults.”
Ginnie Mae, a self-financed, whollyowned corporation within the U.S.
Department of Housing & Urban
Development (HUD), earns revenue
from fees collected on the mortgagebacked securities (MBS) issued under
the Ginnie Mae full faith and credit
guaranty. The corporation’s business
volume reached a historic milestone in
2010 by surpassing $1 trillion in MBS
outstanding. The trillion dollar portfolio supports more than eight million
housing units for families across the
country. During the housing crisis, the
corporation helped stabilize the largest
segment of the market by pumping
more than $900 billion in liquidity into
the single-family housing market since
June of 2008.
“Our goal is to be the best-in-class
conduit for bringing capital into the
U.S. housing finance system, while
minimizing risk to U.S. taxpayers,” said
Executive Vice President Mary Kinney.
“During this incredibly challenging
housing market, Ginnie Mae has overseen tremendous business growth,
while simultaneously implementing
strong risk management practices and
providing efficient solutions to our
business partners.”
Ginnie Mae raises capital from
investors in the global credit markets to
ensure liquidity for affordable rental
and homeownership opportunities
across the country. Its business is to
finance housing mortgage programs
run by the Federal Housing
Administration (FHA), the Department
of Veterans Affairs (VA), the Office of
Public and Indian Housing (PIH), and
the Department of Agriculture’s Rural
Development Housing and Community
Facilities Program (RD).
For more information, visit www.ginniemae.gov.
HUD to Launch
Investigation Into 22
Discriminatory Lenders
The U.S. Department
of Housing & Urban
Development (HUD)
has announced that it
is launching multiple
investigations into the
practices of certain mortgage lenders
to determine if their home loan policies illegally deny qualified AfricanAmerican and Latino borrowers access
to credit.
The investigations are in response to
22 complaints the National Community
Reinvestment Coalition (NCRC) filed
with HUD alleging that the loan activities of the mortgage originators showed
that their home lending practices deny
Federal Housing Administration (FHA)insured loans to African-Americans and
Latinos with credit scores as high as
640. FHA guidelines allow mortgages to
borrowers with credit scores above 580,
provided the borrowers have downpayments equaling 3.5 percent of the loan
amount, or above 500, provided the
borrowers have down payments equaling 10 percent of the loan amount.
“FHA is an important vehicle for
Americans who want to purchase or
refinance a home. We thank NCRC for
bringing these complaints to HUD. For
lenders to deny responsible home seekers this source of credit, without regard
for their capacity to repay the loans,
would raise serious fair housing concerns and, if proven, undermine our
nation’s recovery efforts,” said HUD
Assistant Secretary for Fair Housing and
Equal Opportunity John Trasviña. “HUD
will take appropriate action against any
lender found to be engaging in discriminatory practices.”
Prior to the recent downturn in the
economy, FHA-insured mortgages comprised less than three percent of new
home loans. Since the economic crisis,
FHA and the government-sponsored
enterprises (GSEs) have insured or guaranteed nearly 95 percent of new mortgage loans being originated. By the end
of 2008, almost half of new home purchase loans and one quarter of new
refinance loans were FHA or Veterans
Administration (VA) insured.
According to NCRC, an association of
more than 600 community-based
organizations that promote access to
basic banking services, their fair lending “testers” evaluated the practices of
national lenders, financial services corporations, and other regional and local
FHA-approved lenders. In the complaints filed, the NCRC states that
lenders were chosen according to their
market share and volume of FHA loans,
as well as through discussions with
community leaders.
Under the Fair Housing Act, HUD
impartially investigates allegations of
housing discrimination and, during
every phase of investigations, attempts
to settle complaints through conciliation efforts.
For
more
information,
visit
www.hud.gov.
HOPE NOW: More Than
1.5 Million Loan Mods
Completed in 2010
Proprietary loan modifications
decreased—117,000 in September
compared to 101,000 in October.
60-plus days delinquencies increased—
3.2 million in September compared to
3.4 million in October.
Foreclosure starts decreased from
245,000 in September to 205,000 in
October.
Completed
foreclosure
sales
decreased
from
118,000
in
September to 69,000 in October.
Loan modifications outpaced foreclosure sales in October 125,000 to 69,000.
For
more
information,
visit
www.hopenow.com.
Ginnie Mae to Enhance
Disclosure Transparency
on HECM Securities
Ginnie Mae has announced
that it will soon release
enhanced disclosure information on its Home
Equity Conversion Mortgage
(HECM) securities program. Ginnie
Mae’s HECM securities program supports a growing number of government-insured reverse mortgages, an
important financial solution for many
seniors.
For Ginnie Mae HECM pools, the
additional disclosure information will
include the number of HECM Saver
loans and their remaining principal balance (RPB). Ginnie Mae will also disclose
the HECM Saver RPB as a percentage of
the total HECM RPB. The new disclosure
information is aimed at helping
investors better predict the performance of the underlying mortgage collateral and evaluate the performance of
HECM Saver loans relative to that of
standard HECM loans.
“Investors will certainly appreciate
the additional information, but ultimately consumers should benefit the
most from the more robust disclosures
especially in terms of lower financing
costs,” said Ginnie Mae President Ted
Tozer. “We believe more detailed and
timely disclosure information on this
segment of the market should
enhance investors’ ability to assess the
performance of these securities and
allow Issuers to sell their loans into
the secondary market for better
prices.”
For more than 40 years, the industry
has turned to the stability of the Ginnie
Mae mortgage-backed security (MBS),
allowing Ginnie Mae to provide homeownership opportunities for millions of
Americans. Ginnie Mae securitizes loans
insured or guaranteed by the Federal
Housing Administration (FHA), the
Department of Veterans Affairs, the
Department of Agriculture’s Rural
Development, and the Department of
Housing and Urban Development’s
Office of Public and Indian Housing.
For more information, visit www.ginniemae.gov.
Your turn
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
E-mail:
[email protected]
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the target issue.
MORTGAGE
PROFESSIONAL .TV
COMING IN 2011!
15
NationalMortgageProfessional.com LOUISIANA MORTGAGE PROFESSIONAL MAGAZINE
www.windvestcorp.com
JANUARY 2011
HOPE NOW, the private sector alliance of
mortgage servicers,
investors, mortgage
insurers and non-profit counselors, has
released its October 2010 survey data which
estimates that the industry has completed
more than 1.54 million permanent loan
modifications for at-risk homeowners from
January through October 2010.
That translates to an average of
154,000 homeowners per month who
have been able to remain in their
homes with an affordable loan modification solution. The reported data for
October shows mortgage servicers completed approximately 101,000 proprietary loan modifications for homeowners and 24,000 Home Affordable
Modification Program (HAMP) modifications (as reported by U.S. Treasury
Department), for an estimated total of
125,000.
“There were anomalies in the
October data that affected 60 day plus
delinquency, as well as foreclosure,
metrics which we believe may be largely attributed to widespread foreclosure
delays across the country,” said Faith
Schwartz, executive director of HOPE
NOW. “Despite these irregularities the
mortgage industry’s efforts to keep
homeowners in their homes and offer
viable mortgage solutions continues to
show strong results each month. Far
more homeowners are receiving workout solutions—including loan modifications—than are going to foreclosure
sale each month.”
Of particular note in October’s data is
the effect foreclosure delays and pauses
(initiated by some mortgage servicers
nationwide) had on the delinquency and
foreclosure numbers for the month.
Specifically foreclosure starts and sales
dropped to 205,000 and 69,000, respectively while the number of homeowners more than 60 days delinquent
increased slightly to 3.4 million.
Here are the highlights of the
October 2010 monthly data (based on
industry estimates):
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First Cal Mortgage
San Ramon, Calif.
Educate real estate agents …
Implement educational programs to
target real estate professionals. The
critical component to establishing new
real estate relationships as well as
solidifying current relationships is
education. It is not sitting on open
houses, cold calling closed offices, buying
bagels and pizza … it’s bringing
educational value to your
core partners.
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NationalMortgageProfessional.com LOUISIANA MORTGAGE PROFESSIONAL MAGAZINE
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JANUARY 2011
Why Did They Go Up?
18
There have been two important messages delivered on a consistent basis
from this column. First, no one can predict the future, and second, you must
be prepared for the future. An expert is
not in position to predict the future. An
expert is in position to know what
could affect the future. An expert is also
prepared for what could happen in the
future. Last month, I discussed the
need to be prepared for the transition
from a refinance to a purchase market.
I certainly was not predicting that rates
would go up immediately. However, it
did happen. The next question is …
why did it happen?
I asked our resident secondary technical expert, Eric Holloman of RateLink
and here is what he had to offer …
“Rates came under a double whammy
following the announcement from the
Fed where they published the amount of
bonds they intended to buy. There is a
saying on the ‘Street,’ buy the rumor, sell
the news. Rates fell following Ben
Bernanke’s hint at further quantitative
easing. That sparked a firestorm on Wall
Street on how much the Fed would buy.
Remember QE1 was a whopping $1.75
trillion, including $1.25 trillion in mortgage-backed securities (MBS) and $500
billion in Treasuries? Some market
‘experts’ were forecasting the number as
high at $2 trillion for the second quarter
The $600 billion was in the middle of
what the Street was expecting. Rates
came under pressure following the
announcement because the Fed’s number was not ‘shocking.’ Adding to the
pressure on rates is the VERY REAL concern that QE2 may spark inflation, the
number one enemy to rates. The inflation concern in very real, even within the
Fed. Several Fed districts dissented (voted
no) on further easing citing inflation as
the reason for their dissent.”
Eric makes some great points. I
would add that most of the experts
were saying that rates would stay low
and you should always bet against the
experts. That sounds good and many
times this is a good bet; however, it
does not give us a substantive reason as
to why the experts are wrong. It does
explain why I refuse to predict the
future. It did look as though rates were
staying low, especially with the economy faltering, the addition of the foreclosure crisis to an already weak real
estate market and the Federal Reserve
announcing a plan to start purchasing
up to $600 billion in assets in order to
keep rates down. The stage was set for
low rates as far as the eye could see.
Don’t get me wrong. I don’t think that
rates are high right now, but why did
they rise so quickly?
The rate spike is a reminder that
the all-important powerful government cannot control as much as it
would like. For example, the Federal
Reserve Board cannot control rates.
Yes, it can control short-term rates,
but it cannot control long-term rates.
We may have forgotten this important
fact in the past few years because the
Fed’s plan to purchase mortgages and
Treasuries worked so well as the
financial crisis peaked. However, the
key was that the Fed was purchasing
these instruments while the economy
was in shambles. The markets accepted the move. The markets do not
seem to be as accepting of the Fed’s
plan to purchase another $600 billion
in assets over the coming months
with many concerned that this stimulus could fuel inflation, as Holloman
has indicated. It should be noted that
this inflation scare came right at the
time that the government reported
the lowest level of consumer inflation
since 1957.
The markets are highly psychological, especially in the short-run. That is
why you can never predict the future of
the stock market and rates. If the market sees a Fed move such as lowering
short-term rates or purchasing assets as
inflationary, long-term rates can rise in
reaction. The fact that rates went up
sharply was a surprise to many.
On the other hand, there was another fundamental reason for this move.
Buried in a very busy week in early
November was the employment report.
It was buried because we had an election that week and the Federal Reserve
announcement as well. However, the
employment report was very important. While the increase of 150,000-plus
private sector jobs was welcome, it cercontinued on page 20
Calyx Announces the
Acquisition of Loan-Score
Decisioning Systems
Calyx Software
has announced
the acquisition of
Loan-Score Decisioning Systems Inc. The
addition of a product and pricing engine,
an automated underwriting system, as
well as Federal Housing Administration
(FHA) eligibility decisions to the number
one mortgage origination platform, further solidifies Calyx’s end-to-end offering.
“This is a historic move for Calyx
Software; a very significant and strategic move to better serve our customers
and further our presence in the lending
industry,” said Doug Chang, president
of Calyx Software.
Beginning immediately, Calyx will
execute on the integration of the two
companies and will be working to leverage the value of this acquisition to
bring new and better products to the
market. The service experience for
Loan-Score customers will be business
as usual, contact numbers and personnel will remain the same.
Loan-Score Decisioning Systems is a
10-year old company out of Irvine,
Calif. that offers their clients a full suite
of decisioning solutions satisfying
small, medium and large production
and servicing organization needs. The
modular suite includes a product &
pricing engine (PPE), automated underwriting system (AUS), portfolio analysis
engine (PAE), channel focused point-ofsale (POS) Web portals, a system-tosystem integration bridge and more.
Loan-Score maintains a comprehensive, up-to-date library of investor
guidelines and pricing to ensure eligibility is met and market conditions are
adjusted to deliver precision-based
underwriting that result in fundable
and saleable loans. These options are
available via software-as-a-service
(SaaS) and self-hosted technology models. Loan-Score integrated with Point in
September of 2010 giving mutual customers added efficiencies as well as cost
saving opportunities.
“Loan-Score’s AUS and its interface to
FHA TOTAL Scorecard, are two major
differentiators from their competitors,”
said Dennis Boggs, senior vice president
of business development of Calyx. “This
is what made our initial integration
important and now underscores the
value and significance of the acquisi-
tion. We are extremely pleased to be
gaining a stronger foothold in the
industry. By combining the number
one loan origination suite of products
from Calyx with the Loan-Score product
offerings we are maximizing our value
positioning for both our current and
prospective customers.“
As a result of this purchase, Calyx
will be adding staff within the next several months to accommodate the business and customer needs of both companies while optimizing the two talent
pools of current staffing.
For more information, visit www.calyxsoftware.com.
Ellie Mae and
SOURCECORP Partner
on Doc Management
Solution
Ellie Mae Inc. and
SOURCECORP Inc.
have announced
a partnership to develop an integrated
solution to enable Ellie Mae customers
to securely and efficiently transfer electronic loan files. Customers using Ellie
Mae’s Encompass360 can securely submit their electronic loan files into FASTRIEVE, SOURCECORP’s Web-based
electronic document repository and
workflow management system.
The integrated solution enables
loan file images to be automatically
batched and delivered to correspondent lenders and servicers as needed.
Secure data transmission ensures that
all proper images are transferred;
eliminating missing documents and
saving the time and cost associated
with manually copying and uploading
individual documents.
“Previously, the process of exporting images from Ellie Mae Encompass
into FASTRIEVE was time and labor
intensive. But with the new integrated
solution, the process is automatic and
seamless, saving Ellie Mae customers
anywhere from five to 15 min. per
file,” said Michael Zwall, director of
Mortgage Services for SOURCECORP’s
BPS Division. “With an unparalleled
level of configurability, our industry
leading technology enables integration with key service providers, like
Ellie Mae, to support a paperless
workflow throughout the origination
process.”
For
more
information,
visit
www.sourcecorp.com or www.elliemae.com.
CampusMBA Extends
Partnership With
Insurance Advisors for
Online Education
Clayton Holdings to Offer
Special Compliance
Servicing Through Its
Quantum Division
Clayton Holdings
LLC, a provider of
customized risk analysis, loss mitigation, operational solutions and staffing
services to the mortgage and fixedincome industries, has announced that
its Quantum Servicing unit is now offering a full-range of loan administration
and asset management services to
Is local knowledge required to perform a creditable appraisal? Some say
yes, and in principal, I agree. To be more
succinct, I would prefer subscribing to
the term possessing adequate local market information. Generally, the term
“local knowledge” is used because it
makes doing an appraisal easy. One does
not have a need to do nearly so much
market research when local knowledge
is available. Said another way, local
knowledge is cheaper and quicker than
exhaustive research. Finally, once the
proper research has been completed,
those from outside the market will possess the necessary local knowledge to
perform a creditable appraisal.
While geographic unfamiliarity offers
the traveling appraiser a challenge, perhaps one of the biggest obstacles for the
appraiser to overcome in less developed
areas, whether one is local or from out of
town, is finding a source of reliable market
data. In many localities, the Multiple
Listing Service (MLS) is foreign to the vocabulary of local real estate practitioners, and
having access to an online property tax
database is either non-existent or not readily available. In these markets, data is usually horded by a few people who have
small snippets of information, which they
develop firsthand from transactions they
handle. In these cases, they are among the
few who know about specific transactions;
however, there are tons of transactions
that they just do not know about. In these
situations, everyone suffers, since no one
can know about the entire market. This
makes for a less efficient system and produces fewer professional appraisers who
have complete knowledge of the local
market. This problem seems to be less of
an issue for local banks in these areas.
Perhaps this is because they do not have
the same appraisal requirements as do
banks in the United States.
Given the above scenario, my challenge in Costa Rica was not just my
unfamiliarity with the market, but my
need to obtain information in a timely
and cost-efficient manner. Fortunately,
I was able to befriend three of the most
active real estate brokers in the local
market and they helped me get up to
speed quickly on what was happening
in their market.
Another challenge in such markets is
the language barrier. U.S. lenders expect
their appraisals to be delivered in English,
even if the property is located in a land
where few, if any, people, who refer to
themselves as appraisers, read, write and
speak English. Since all public records in
Costa Rica are written in Spanish, this
necessitates a bit of translating. Along the
same line, the local money is not measured in U.S. dollars. There, it is measured
in colones, a completely different medium from what we are accustomed to. At
the time of my visit, a U.S. dollar was
worth 516 colones. This required translation and further calculation.
In the end, the boundaries between
countries offer challenges to those making mortgage loans, regardless of who
does the appraisal. This will almost
always equate to a more expensive, timeconsuming and complicated appraisal
assignment, no matter who does the
work. In foreign countries, there will
sometimes be local professionals competent enough to provide professional
appraisals which conform to the standards of the lending community in the
United States, but usually not.
The difficulties in appraising internationally, created by lack of accessible market data, local customs, language, different monetary systems and related issues,
make for an interesting stew frequently
favoring the travel of United States professionals over hiring local appraisers in
parts of the world that do not conform to
the requirements of our own system.
In closing, I would like for the record
to show that the country of Costa Rica is
a beautiful place, and that it is understandable why those fortunate enough
to have property there do so.
Charlie W. Elliott Jr., MAI, SRA, is president
of Elliott & Company Appraisers, a national real estate appraisal company. He can
be reached at (800) 854-5889, e-mail [email protected] or visit his company’s
Web site, www.appraisalsanywhere.com.
NATIONWIDE APPRAISAL MANAGEMENT CENTER
866-396-6260
www.hvccappraisalordering.com
EMAIL: [email protected]
I REAL TIME COMMUNICATION OF APPRAISAL STATUS
I NATIONWIDE SERVICE WITH LOCAL APPRAISERS IN ALL COUNTIES
I IMMEDIATE SERVICE FROM QUALIFIED STAFF
I COMPETITIVE FEES
I OFFERING "REALVIEW" THE MOST ADVANCED UNDERWRITING AND
GRADING SYSTEM IN THE INDUSTRY
I QUALITY APPRAISALS AND REVIEW
I STAFFED BY APPRAISERS WITH OVER 150 YEARS COMBINED EXPERIENCE
19
JANUARY 2011
Equifax has
announced that
it is working with BlackBox Logic to give
investors greater transparency into borrower credit health. ABS Credit Risk
Insight Direct, Equifax’s data solution
for the mortgage-backed securities
(MBS) market, now leverages BlackBox
Logic performance data on more than
21 million loans across nearly 7,600
deals. By linking anonymous borrower
credit information to BlackBox Logic’s
extensive MBS performance data, ABS
Credit Risk provides a more complete
picture of the collateral health underlying non-agency MBS.
Equifax and BlackBox
Logic Partner on
Borrower Credit
Transparency Product
value nation
NationalMortgageProfessional.com CampusMBA, the
award-winning
education division
of the Mortgage
Bankers Association (MBA), has announced
that it has extended its partnership with
Stamford, Conn.-based Insurance Advisors
LLC. Under the agreement, CampusMBA,
in conjunction with Insurance Advisors,
will offer live online workshops addressing insurance issues for commercial/multifamily real estate loans.
“MBA remains committed to offering
a wide variety of industry education
and this partnership with Insurance
Advisors illustrates our continued commitment to these efforts as we offer
focused classes on commercial insurance issues that are so vital to our commercial and multifamily members,”
said Gail Cardwell, MBA’s senior vice
president of commercial/multifamily.
Each workshop will cover both
broad topics as well a specific issues
that industry professionals face on a
daily basis. The workshops are
designed to provide practical information that is useful to commercial/multifamily loan originators and underwriters, loan closers, drafting attorneys and
loan servicers.
“The Commercial Insurance LIVE
Online Workshops are a great resource
for our members to enhance their
knowledge base through the expertise
provided by CampusMBA and Insurance
Advisors,” said Paul Green, MBA’s senior
Vice President of corporate relations,
education and business development.
“We are delighted to renew our joint
venture with MBA to put on Live Online
Workshops related to commercial real
estate insurance. This has been a great
partnership and we look forward to our
third year together in this endeavor,”
said Bernie Brown, president of
Insurance Advisors LLC. “We are committed to providing superior educational assistance to MBA members and
we are proud the MBA has chosen to
continue our partnership with them.”
For more information, visit www.mortgagebankers.org or www.ins-adv.com.
This relationship represents the latest step Equifax Capital Markets has
taken to equip investors with powerful
data solutions. ABS Credit Risk Insight
provides leading indicators of loan performance such as updated credit scores
and detail on all mortgage and home
equity payments, owner-occupancy
and performance on past mortgages.
Now, Equifax’s solution statistically
matches up-to-date borrower credit
information to BlackBox Logic’s database of MBS performance data to help
investors improve model accuracy, better predict loan default and prepayment and enhance deal surveillance.
“More than ever before, investors
are focused on addressing industry and
policy requirements while looking for
ways to increase their confidence in the
collateral behind securities. This is
where solutions that provide transparency into collateral risk play a critical role,” said Steve Albert, vice president of Equifax Capital Markets. “The
combined strength of Equifax’s industry-leading solution and BlackBox
Logic’s extensive loan-level MBS data
gives investors the insight they need to
better predict securitized loan performance and make more confident trading
decisions.”
In addition to making ABS Credit
Risk Insight available to investors using
various types of loan-level data,
Equifax continues to find new ways to
enhance its data solutions for the secondary market. Over the past year,
Equifax has added several new and
unique data variables to its ABS Credit
Risk product line, including owneroccupancy and bankruptcy indicators
as well as the FICO credit score and the
FICO Mortgage Industry Option known
as the BEACON Mortgage Score.
VantageScore, a consumer credit scoring model developed by Equifax and
the other major credit reporting companies, is also available through ABS
Credit Risk Insight Direct.
“Equipping investors with tools that
allow them to conduct more granular
analysis of collateralized mortgage
obligations is essential for this industry,” said Wyck Brown, chief marketing
officer of BlackBox Logic. “Working
together, we are delivering to the secondary market powerful solutions that
leverage very unique data attributes
and highly accurate risk models.”
For
more
information,
visit
www.equifax.com or www.bbxlogic.com.
the secondary market overview
20
tainly was not Earth-shattering since
we lost more than seven million jobs
during the recession. It did represent a
small move in the right direction. The
weeks following this announcement
saw first-time unemployment claims
continue to drop as well.
We have also indicated previously
that employment is key to our economy recovery. The real estate market
will not recover without the economy
creating jobs. Of course, it is hard for
the economy to create jobs when the
real estate market is suffering. This
“Catch-22” means that we must take
tiny steps out of this vicious cycle.
Creating more than 150,000 jobs per
month is one of these steps. This fundamental, coupled with the skittishness of the markets regarding the Fed
plan and inflation could be what contributed to the spike.
So where do we go from here? Well,
we need the economy to create
150,000-plus jobs per month on a consistent basis. In other words, the number cannot go back below the 100,000
mark and it must move towards
200,000. That is exactly what happened in November, as the economy
actually created less than 50,000 jobs.
However, let’s take a look back for
some perspective. Just over 18 months
ago, we were losing more than
500,000 jobs per month. The fact that
we consider the creation of 50,000
jobs bad news is actually good news at
this point.
Of course, we are not out of the
woods and this is why rates are not
likely to continue to rise indefinitely.
If they do, we may never get out of
the woods. The foreclosure crisis must
be resolved because we must get rid
of the shadow inventory. Like the
overall recovery, this should take
some time. Early reports on holiday
retail sales were encouraging.
Consumer spending is another key
factor in the recovery process.
Does it sound like we are rooting for
rates to go up? If rates are going up
because the economy and real estate
markets are recovering, then that is a
good thing. But as we emphasized, they
cannot rise too fast without jeopardizing the recovery. Will rates remain at
this level or go back down somewhat?
Again, you cannot predict the future.
What if Korea breaks out in an all-out
war? What if the European debt crisis
gets worse? These are factors that theoretically could bring rates back down in
a flight to safety. One event could cause
everything to go out the window with
regard to the fundamentals. We may
have already have seen some movement from the time I write this column
until the time it is published.
For now, the fundamentals have
not changed that much. There is no
inflation. The economy is still very
slow and will slow further temporarily
due to the foreclosure crisis. Of course,
the reminder we received last month
of what can happen to rates in an
instant should be taken seriously for
those who are waiting to purchase a
house or a car and think they can wait
because they believe rates will remain
low forever. Blink an eye and the
world can change.
That goes for loan officers as well. Go
back to my message regarding the transition to a purchase market. If you are
not getting ready for this transition at
some time in 2011, then you will be left
behind. It will be too late to make the
transition after it already happens …
and November was a month which
reminded us of how just quickly it can
happen.
heard on the street
investors in small balance commercial
real estate loans.
Quantum’s Commercial Servicing
Division, based in Tampa, Fla., will primarily handle non-performing commercial loans—acquisition, development and construction (ADC), multifamily, shopping center and strip
mall—valued at $5 million or less.
According to Fitch Ratings, commercial
real estate losses in 2010 have already
reached $21.66 billion so far this year,
surpassing the 2009 levels of $17.75
billion. The number of defaults
through 3Q 2010 (1,452) nearly equals
the total for all 2009 (1,464).
Paul Bossidy, chief executive officer
of Clayton, said that Quantum was
preparing to enter this market when
several large investors approached the
company and asked them to coordinate their efforts. As a result, Quantum
is already servicing approximately
6,000 non-performing and performing
small balance loans.
“We are approaching this new market the same way we approached residential special servicing,” said Bossidy.
“We’re not trying to be all things to all
clients. Instead, we’re focused on a
growing but under-served part of the
market, not the mega deals. Our goal is
to be the best-in-class option for
investors looking for customized servicing programs, and higher levels of collaboration and transparency from their
servicer.”
Scott H. Kramer, a commercial real
estate veteran with 20-plus-years experience will direct Quantum’s commercial default servicing operations. He
Dave Hershman is a leading author for the will report to Quantum’s President
mortgage industry with eight books and sev- Scott Conradson.
eral hundred articles to his credit. He is also For more information, visit www.clayhead of OriginationPro Mortgage School and ton.com or www.quantum-servicing.com.
a top industry speaker. Dave’s NewsletterPro
Marketing System can be found at MRG Announces
www.webinars.originationpro.com. If you Integration With
would like to stay ahead of what is happen- Mortgage Builder’s LOS
ing in the markets, visit ratelink.originationMRG Document
pro.com for a free trial or e-mail
Technologies (MRG), a
[email protected].
provider of mortgage
document preparation software and compliance technology
to banks, credit unions and other lenders
nationwide, has announced that its MIRACLE Online electronic document preparation system is integrated with Southfield,
Mich.-based Mortgage Builder’s awardwinning loan origination software (LOS)
system.
For lenders operating in several
states, such as Texas, closing document
packages must be prepared by a
licensed attorney. Through the integration, loan data can now be imported
directly from the Mortgage Builder LOS
into MIRACLE Online where MRG’s inhouse staff of attorneys creates the
content for the closing packages. This
automation alleviates the risk of inaccuracy that can develop with the manual re-keying of data. In addition,
Web: www.appraisalsanywhere.com
Mortgage Builder’s clients benefit from
closing documents that are guaranteed
to be in compliance with the latest regulatory updates.
“Our goal is to streamline the origination process so our lenders can
work more efficiently and cost-effectively,” said Liz Fafette, vice president
of operations for Mortgage Builder.
“By integrating with MRG, our customers are able to easily move the
data between the LOS and doc prep
system, improving accuracy and saving time. Accuracy is essential to prevent repurchase demands in the current environment. And with the additional oversight we can expect as the
Dodd-Frank Act is enacted, lenders
will benefit from the precision this
integration brings.”
“Data such as escrow setup, title
insurance premiums and county tax
stamps can easily be misread and reentered into the system incorrectly,”
said Kathleen Mantych, senior marketing director for MRG. “Direct export
from the LOS into MIRACLE Online is
especially beneficial for those lenders
producing loans in states that require
attorneys to prepare closing packages
because it cuts a step out of the
process. We look forward to assisting
Mortgage Builder’s clients with the
quicker, streamlined production of regulatory compliant documents.”
For more information, visit www.mortgagebuilder.com or www.mrgdocs.com.
Wipro Gallagher
Solutions Partners
With Mortech Inc.
Wipro Gallagher
Solutions (WGS), a
provider of costeffective, end-toend loan origination technology and
fulfillment services for mortgage
lenders, has announced an integrated
joint offering with Mortech Inc., a
mortgage technology software company specializing in daily pricing, product
decisioning and lead management
solutions for secondary marketing
teams and mortgage bankers.
The collaborative effort offers users
of WGS’ loan origination system (LOS),
NetOxygen, to access Mortech’s
Marksman loan product and pricing
engine and compare real-time pricing
quotes from multiple investors for any
type of loan program within seconds.
The Marksman-NetOxygen joint offering increases conversion rates throughout the sales cycle and optimizes the
loan closing process for originators and
secondary desks.
“Our partnership with WGS offers a
dynamic solution for efficiently originating and closing loans,” said Don
Kracl, president of Mortech. “The interface combines the best features of both
The “Fatal Flaw” in HAMP
By Steven Gillan
This “Escalation” process would also
give the Treasury the information they
need to verify if the servicer is doing the
right job and take action on those that are
not. It would let the servicing industry
know that they cannot continue to perform their job poorly because no one will
check on them. The hope would be to get
the servicer, due to competition the
knowledge that they no longer have a
monopoly on the process, to act properly.
Unfortunately at this time, the Treasury
has stated clearly they have no intention of
performing this function even though it is
mandated by HAMP. It makes sense to
actually “review” a file for accuracy and
they have been presented with a plan to
implement a program immediately by our
organization, the American Alliance of
Home Modification Professionals (AAHMP).
Without this, what recourse is left to the
investor and homeowner? The answer is
possibly the courts, but that takes a long
time which will continue to just further
slow the process. This does not benefit
anyone but the servicer. This “Fatal Flaw”
needs to be corrected.
Steven Gillan is executive director of the
American Alliance of Home Modification
Professionals (AAHMP), an association
formed to establish nationwide, newly elevated, lasting and consistent operational
and behavioral standards for the professional mortgage loan modification industry. Steven may be reached by phone at
(631) 875-3181, e-mail [email protected]
or visit www.aahmp.org.
21
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www.nmlf.us
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JANUARY 2011
IF WE CAN’T DO IT WE WON’T WASTE YOUR TIME!!!
FAST, STREAMLINED PROCESS
ATTENTION AGENTS, INVESTORS & DEVELOPERS!!!
NationalMortgageProfessional.com Approximately 20 months into the Home is evident at the Treasury and in Congress
Affordable Modification Program (HAMP) with the failure of the servicer to follow
and the Obama Administration’s efforts guidelines as designed yet the servicer
to slow foreclosures with its many trou- claim they are doing everything possible.
Now we have the robo-signing issue
bles still exist. This is evident from all of
the processing problems we still see and which they (the servicers) have admitted
hear about on a daily basis, from lost to being part of.
Lets review … after 20 months of faildocuments; improper calculation of
ing to implement loan
income; poor knowledge
modifications, several miland implementation of the
lion Americans who have
underwriting guidelines;
lost their homes, millions
four, six, 12 and 20 months
of below-market real
for approval; and now, the
estate-owned (REO) proprobo-signing situation. The
erties waiting to hit the
list continues, but yet after
housing market, and abusall this time, we do not see
es like “robo-signing,” why
improvement. Now, we
is the government still not
find a “fatal flaw” in HAMP
physically overseeing the
that could be our last
work of servicers? What is
chance to fix the problems.
the Treasury to do? They
What we do see is a level
“…after 20 months of
can leave it up to the
of frustration from all interfailing
to
implement
courts or the attorneys
ested parties; we have the
loan
modifications,
general around the couninvestor who hired the sertry, but that will take
vicer under a Master Servicing
several million
months if not years.
Agreement (MSA) who cannot
Americans who have
The Treasury could
get their service provider to
lost their homes, milimplement a component in
even respond to their
lions of below-market
HAMP that deals with cominquires—plus a continuous
real estate-owned
pliance. It is a tool that has
stream of fees to deal with
(REO)
properties
waitbeen built into the guidethe foreclosure process. We
ing
to
hit
the
housing
lines for compliance of polihave the homeowner who is
making every effort to com- market, and abuses like cy by the servicer. This job is
contractually the responsiply with the servicers’ contin‘robo-signing,’ why is
uous request for documen- the government still not bility of Freddie Mac. It is a
tool that allows Freddie Mac
tation. Then, there is our
physically overseeing
to review the servicer opergovernment representatives
the work of servicers?”
ation and procedures to
wondering just exactly what
assure that all applications
is going on?
The plan in the beginning was to cre- for HAMP are given the same treatment.
ate the MHA/HAMP where the Treasury This compliance operation is part of the
would provide an overall strategy, guide- Servicer Participation Agreement (SPA) that
lines, policy directives and alterations as more than 100 servicers have signed with
required to try and meet the overall the U.S. Department of the Treasury. Part of
objectives of stabilizing real estate values this guideline is the “Escalation” process
nationwide. The Treasury hired Fannie where a homeowner that has been denied
Mae and Freddie Mac to run the pro- a modification has the ability to have their
grams—Freddie as its compliance team case reviewed by the Treasury. The Treasury
and Fannie as the agency responsible for has hired the Homeownership Preservation
implementation. After all this time, it is Foundation (HPF) to handle those calls.
evident the program is failing for reasons According to the Treasury, it is the job of the
as mentioned earlier, what is to be done. HPF to work with the homeowner and serTo the Treasury’s credit, they have tried vicer to try and iron out differences and act
to work with the servicing industry to as an advocate of the homeowner with the
make the plan workable. The frustration servicer.
The troubling part of the above process
is this … during that “Escalation” process,
no one checks the servicer work product.
When this homeowner was denied a
HAMP modification, or the process is taking 10-20 months, no one checks if the
servicer underwriting was correct to begin
with, no one request to see the files to
determine if that homeowner does or
does not actually meet the guidelines.
Again, are we just to believe that the servicer did the job correctly or that the file
is not being dragged on for financial gain.
This is the “Fatal Flaw” in HAMP which
will doom it to failure because no one is
checking on the servicer. How can the
Treasury assure the homeowner or the
American taxpayer that the particular file
did not “in fact” qualify for a HAMP modification if no one determines that it was
underwritten properly? The servicer can
do and say whatever they want and the
Treasury or the homeowner has not
recourse but to accept their conclusion.
A strong “Escalation” process performed by a neutral third party can
either affirm or dispute those finding.
With cases that the decline is valid based
on HAMP underwriting guidelines, everyone knows where they stand and they all
can move on. In a case where the servicer did “in fact” make a mistake, a
completed modification application,
fully underwritten by a U.S. Department
of Housing & Urban Development (HUD)
Direct-Endorsed Underwriter would be
given to the servicer for them to review
and complete the process.
heard on the street
New Risk-Based Pricing Rules
Effective January 1, 2011
Overview
22
Risk-based pricing (RBP) refers to the practice of using a consumer’s credit report, which reflects his or her risk of nonpayment, in setting or adjusting the price and other terms of
credit offered or extended to a particular consumer. The
risk-based pricing rules implement Section 311 of the Fair
and Accurate Credit Transactions Act of 2003 (FACTA), which
amends the Fair Credit Reporting Act (FCRA).
The Federal Reserve Board (FRB) and the Federal Trade
Commission (FTC) proposed regulations in May 2008 that
generally would require a creditor to provide a consumer with a risk-based pricing disclosures (RBP Disclosures) when, based in whole or in part on the consumer’s credit report, the creditor offers or provides credit to the consumer on
terms less favorable than the terms it offers or provides to other consumers.
On Dec. 28, 2009, the FRB and FTC announced the final risk-based pricing rules,
with the effective compliance date of Jan. 1, 2011. Publication in the Federal
Register of the final rules took place on Jan. 15, 2010.1
The new rules apply to mortgage brokers (if they are credit grantors), correspondents, and lenders and impact all consumers that have credit data and/or
scores accessed for a risk-based pricing decision, regardless of loan approval status.
Indeed, risk-based pricing rules apply, with certain exceptions, to all creditors
that engage in risk-based pricing. A risk-based pricing notice would generally be
provided to the consumer after the terms of credit have been set, but before the
consumer becomes contractually obligated on the credit transaction.
The rules provide a number of different approaches that creditors may use to
identify the consumers to whom they must provide risk-based pricing notices.
In addition, the rules include certain exceptions to the notice requirement, the
most significant being an exception that permits creditors, in lieu of providing a
risk-based pricing notice to those consumers who receive less favorable terms, to
provide all of their consumers with their credit scores and explanatory information.
As an alternative to providing risk-based pricing notices, the final rules permit
creditors to provide consumers who apply for credit with a free credit score and
information about their score. Today, most consumers must pay a fee to obtain
their credit score.
Companies that use a credit report or score in connection with a credit decision
must send notice, containing specified information, to a consumer when, based
on a credit report or score, the company grants credit on material terms that are
not the most favorable terms offered to a substantial proportion of consumers.
For instance, in most cases, the rule defines material terms as the loan’s annual
percentage rate (APR).
What are Material Terms?
With respect to closed-end (residential real property) credit, there are two specific
categories:
1) Material Terms: The Annual Percentage Rate (APR) required to be disclosed.2
2) Materially Less Favorable: The terms granted, extended or otherwise provided
to a consumer differ from the terms granted, extended or otherwise provided to
another consumer from or through the same person (i.e., original creditor) such
that the cost of credit to the first consumer would be significantly greater than the
cost of credit granted, extended, or otherwise provided to the other consumer.
NetOxygen and our Marksman loan
product and pricing engine, reducing
the time and resources many lenders
and secondary desks currently devote
towards the processing of loans in their
pipeline. We’re confident this synergistic collaboration will promote a unique
and efficient work-flow process for the
mortgage community.”
The new integration will allow users
to perform various lender tasks more
effectively, such as instant rate searching and re-pricing, viewing detailed
pricing summaries, accessing product
guidelines and gaining product eligibility intelligence. Data is transmitted
seamlessly between the two solutions
through an exclusive bi-directional
process. NetOxygen can be enhanced
so that customers can trigger price
requests to their Marksman account
based off of a particular loan status.
Marksman then transmits critical data
back to NetOxygen. The free flow of
data exchange allows for an end-to-end
loan closing experience.
“By adding the Marksman interface
to its already robust vendor ecosystem,
WGS has enhanced the overall loan
closing process by providing lenders
the opportunity to access all loan rates
across all channels through a single ata-glance portal,” said Anil Raibagi,
business head for WGS. “By eliminating
such time-consuming search processes
associated with pricing rates and product guidelines, NetOxygen provides
greater workflow automation and
helps lenders to focus more on their
lending and closing deals.”
For more information, visit www.gogallagher.com or www.mortech-inc.com.
MDA DataQuick Acquired
by TPG Capital
MDA DataQuick, a
division of MDA
Lending Solutions
and an independent provider of property data to real
estate and mortgage professionals, has
announced that it has been acquired
by TPG Capital (TPG), based in Fort
Worth, Texas. This acquisition is part of
a larger sale to TPG of MacDonald
Dettwiler & Associates Ltd.’s (MDA)
Information Products business. The
Information Products group includes
several businesses across the United
States, United Kingdom, Canada and
Europe. Properties acquired in the
deal, which services the lending industry in the United States, includes MDA
DataQuick, MDA Mindbox, MDA
Lending Solutions as well as Marshall &
Swift, a provider of data and analytics
to the insurance industry.
The Information Products group will
benefit from joining TPG, which has
extensive experience in the market and
ownership of complementary companies. TPG is very knowledgeable about
the data and financial services sector
and is interested in investments that
will grow the business.
“We are very excited about investing
in these high-quality property information businesses. MDA and the respective management teams have done an
excellent job growing these companies,” said Bryan Taylor, a partner at
TPG Capital. “This investment fits very
well within our broader data services
portfolio, and we look forward to working with management in the US,
Europe and Canada to continue growing these businesses.”
“TPG Capital’s acquisition of MDA
DataQuick reaffirms the strength of our
business model and will help us to
grow our leadership position as an analytics and data provider in the real
estate and lending markets,” said John
Walsh, president of MDA DataQuick.
“We’re positioned to compete and win
in these challenging markets, because
of operational performance and the
stability of our client base. TPG’s ownership and guidance helps set the stage
for future growth.”
For more information, visit www.mdasolutions.com.
Embrace Home Loans
Reaches Goal of 3,200Plus SAFE Act Compliant
Employees
Embrace Home
Loans, a direct
lender for Fannie
Mae and Freddie Mac, approved by FHA
and VA, and an issuer for Ginnie Mae,
recently achieved a corporate goal of
meeting the licensing requirements to
date of the Secure and Fair
Enforcement for Mortgage Licensing
(SAFE) Act. More than 275 of the company’s loan officers successfully completed the required paperwork, submitted the appropriate documentation
for the Nationwide Mortgage Licensing
System (NMLS), and passed professional
licensing exams in multiple states. In
total, the company achieved more than
3,200 licenses that all meet or exceed
the requirements of the regulation.
“We have been preparing for the
SAFE Act for more than a year, and consequently have invested thousands of
man-hours and millions of dollars in
resources to ensure all of our loan officers are ready to meet the requirements of the SAFE Act,” said Embrace
Home Loans President Kurt Noyce. “We
are in favor of the regulations and
believe this is an important step in
terms of protecting consumers and
ensuring only credible and professional
loan officers remain employed. We
believe the entire industry, not just
non-depository lenders, should be held
to this standard in an effort to restore
professionalism and ensure the consumer’s best interest is honored.”
Only
$
Plus Postage
& Handling
Part I:
The new pillar of retirement security
Part II:
Marketing reverse mortgages: It’s all about education
Part III:
Originating reverse mortgages
Part IV:
Enhancing freedom: The essence of reverse mortgages
Part V:
A new frontier in mortgage lending
“When I first began reviewing the contents of this book, I became quite jealous ... Atare Agbamu
has set down an impressive amount of information ... And he delivers it in an easy-to-read, simpleto-understand style that will make this book essential reading for all reverse mortgage
professionals.”
—from the Foreword by Jim Mahoney, Co-Founder and Former Chairman, Financial Freedom Senior Funding
Corporation, and former four-term Co-Chair of NRMLA’s Board of Directors
“The stories [Chapter 15: Profiles in Satisfaction] are the best vehicle to increase understanding and
acceptance of reverse mortgages among us laypeople. They are very compelling ...”
—Therese Cain, Executive Director, Minneapolis/St. Paul Chapter of Little Brothers—Friends of the Elderly
“This book should be required reading for all new loan consultants originating reverse mortgages and
is recommended for experienced ones as well. This book provides excellent insight and information
on preparing ahead to provide the service our seniors deserve, to ensure a smooth loan process and
shorten the time to closing. Most of the problems caused in the processing and closing of reverse
mortgages come from inadequate preparation.”
—Deanne Opstad, AVP, Senior Underwriter, Generation Mortgage Company
Think Reverse!
Table of Contents
—Sarah F. Hulbert, President, Senior Financial Corporation and former four-term Co-Chair of NRMLA’s Board
of Directors
23
NationalMortgageProfessional.com 49
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“Atare Agbamu is one of only a handful of people in the reverse mortgage arena
who possesses a commanding understanding of the reverse mortgage industry.
As an originator, he has hands-on experience educating seniors and their advisors.
As author of the “Forward on Reverse” column in The Mortgage Press since 2002,
Atare Agbamu communicates nationally with the housing finance community,
bringing the unique insights and experience of an ardent reverse mortgage expert
into a wider business context.
“This book combines Atare’s keen insights and know-how with extensive research to create a first
of its kind resource for the reverse mortgage industry. It offers a comprehensive overview of the industry plus detailed information on marketing and originating reverse mortgages.
“Present and future reverse mortgage professionals and senior advisors will profit from
decades of experience skillfully woven into this book. If you plan to succeed in this industry, this
book is the place to start.”
JANUARY 2011
regulatory compliance outlook
24
heard on the street
Factors relevant to determining the significance of a difference in cost: the type of
The SAFE Act requires that all resicredit product, the term of the credit extension, if any, and the extent of the dif- dential loan officers who are employees
ference between the material terms granted, extended, or otherwise provided to of agency-regulated institutions be
the two consumers.3
licensed through a series of requirements recently put into place by the
Who provides the RBP Disclosures?
NMLS. The SAFE Act standards are
Two-prong test
designed to enhance consumer protecThere is a two-prong test to determine the RBP compliance requirement, and both tion by promoting transparency in
conditions must be met:
mortgage lending, though licensing
requirements apply only to non-depos(1) Determine that a consumer report is being used in connection with an appli- itory lenders. Officers working for fedcation for, or a grant, extension or other provision of, credit (for personal, house- erally regulated and insured instituhold, and family—not business—purposes) to a consumer; and
tions are considered registered by the
(2) Based in whole or in part on the consumer report, determine if credit is grant- SAFE Act and do not have to take the
ed, extended or otherwise provided to that consumer on “material terms” that are steps to obtain licensure. All loan offimaterially less favorable than the most favorable terms available to a substantial cers working outside the banking sysproportion of consumers from or through the credit grantor.
tem are subject to new training, testing
and extensive licensing requirements.
Who receives the RBP Disclosures?
The process for compliance begins
A consumer must receive the RBP Disclosures by determination of the following with pre-licensure education courses,
methodologies:
which the loan officer must then sustain annually in continuing education
Direct comparative analysis
courses. A written exam is required to
Directly comparing the material terms offered to each consumer and the materi- evaluate competence, as well as a credal terms offered to other consumers for a specific type of credit product.4
it check for financial responsibility and
a criminal background check. Issues
Credit score proxy5
such as bankruptcy could affect a loan
(A) Determining the credit score (cutoff score) that represents the point at which officer’s chances at being licensed. A
approximately 40 percent of the consumers to whom it grants, extends or provides loan officer then obtains a unique idencredit have higher credit scores and approximately 60 percent of the consumers to tifier, which remains with them
whom it grants, extends or provides credit have lower credit scores; and
throughout any changes in employ(B) Providing a risk-based pricing notice to each consumer to whom it grants, ment. Once the new Registry system is
extends or provides credit whose credit score is lower than the cutoff score.
fully operational, a mortgage loan officer must provide in certain circumTwo or more credit scores used
stances, their unique Registry identifier
Determine the cutoff score using the same method the creditor uses to evaluate to consumers. This identifier provides
multiple scores when making credit decisions. Evaluation methods may include, access to all requirements the officer
but are not limited to, selecting the low, median, high, most recent or average met in the licensing process, including
credit score of each consumer to whom it grants, extends or provides credit.
such information as the background
check and financial history.
No credit scores
For
more
information,
visit
When using the credit score proxy method (see above) to grant, extend or provide www.embracehomeloans.com.
credit to a consumer for whom a credit score is not available, an assumption is
made that the consumer is receiving credit on material terms that are materially Calyx and CCMC
less favorable than the most favorable credit terms offered to a substantial pro- Announce Strategic
portion of consumers from or through that original creditor and a risk-based pric- Alliance Aimed at
ing notice to the consumer must be provided.
Workflow Efficiency
Calyx Software has
Tiered-pricing method
announced a strategic
Tiered-pricing occurs when the creditor places the consumer within one of a disalliance with CCMC to
crete number of pricing tiers for a specific type of credit product, based in whole
provide interfaces with
or in part on a consumer report. If the consumer is not placed within the top pric- other critical systems such as core proing tier or tiers, the RBP Disclosures compliance are met, as follows:
cessing, core servicing or back-office
software. CCMC’s bridge products will
Four or fewer pricing tiers: Providing a risk-based pricing notice to each con- enable even more efficient workflow
sumer who does not qualify for the top tier (that is, the lowest-priced tier). and increased productivity for financial
Example: A creditor that uses a tiered pricing structure with annual percentage institutions using Calyx for their mortrates of eight, 10, 12 and 14 percent would provide the risk-based pricing gage platform as information is easily
notice to each consumer to whom it grants, extends, or provides credit at annu- shared between systems.
al percentage rates of 10, 12, and 14 percent.6
Calyx mortgage solutions combine
Five or more pricing tiers: Providing a risk-based pricing notice to each con- the latest technology with the functionsumer who does not qualify for the top two tiers (that is, the two lowest-priced ality that mortgage professionals require
tiers) and any other tier that, together with the top tiers, comprise no less than for loan marketing, prequalification,
the top 30 percent, but no more than the top 40 percent of the total number origination, and processing. As a robust
of tiers. Each consumer placed within the remaining tiers must receive a risk- server-based solution designed with
based pricing notice. Example: If a creditor has nine pricing tiers, the top three added security required by financial
tiers (that is, the three lowest priced tiers) comprise no less than the top 30 per- institutions, PointCentral protects busicent, but no more than the top 40 percent of the tiers; therefore, a creditor ness integrity from the simplest access
using this method would provide a risk-based pricing notice to each consumer restriction to ensuring that all employto whom it grants, extends, or provides credit who is placed within the bottom ees follow specified business rules—all
six tiers.7
with the easy-to-use screens and compliance features of Point that meet the
continued on page 26 needs of all mortgage professionals.
“I am very excited about our alliance
with CCMC,” said Wade Brantley,
national sales director for Calyx
Software. “Many of our clients operate
in sophisticated environments and
need to bridge Calyx with other critical
business software. CCMC provides us
with a highly respected and talented
bridge builder. Our clients have been
thrilled with the results as Calyx continues to reap market share gains with
mortgage banks, banks and credit
unions.”
CCMC provides bridge solutions that
link core banking systems with specialty applications such as Point and
PointCentral, providing a streamlined
data flow backed by a sophisticated
middleware engine that ensures that
transactions are complete and error
free as they are shared across multiple
software applications. CCMC bridge
solutions also connect Calyx Software
products with back-office software used
by many mortgage banks. Additionally,
CCMC can build a customized bridge
from any other critical system to Point
or PointCentral, giving all financial
institutions the opportunity to utilize
the number one mortgage platform in
the nation with the end-to-end functionality, efficiency, and data flow they
need to increase productivity.
“Competition and industry regulations have developed a need for realtime information exchange between
systems,” said Dana Giesler, vice-president of sales for CCMC. “Bridging critical
systems with Calyx products gives Calyx
clients the fast, accurate data flow that
will keep them competitive.”
For more information, visit www.calyxsoftware.com or www.ccmcinc.com.
CIS Group Announces
the Acquisition of
Cornerstone Appraisal
Services
CIS Group LLC, a subsidiary of CIS Holdings LLC
and an affiliate of CEP,
has completed its acquisition of Cornerstone
Appraisal Services of Valparaiso, Ind. This
acquisition marks the third property inspection services company that CIS Group has
acquired, including GPL Solutions in 2005
and Advanced Field Services in 2008.
“Cornerstone’s core products are a
perfect complement to our existing
field underwriting services,” said
Michael Stanley, chief executive officer
of CIS Holdings. “The acquisition of
Cornerstone broadens CIS’ product
offering and gives our clients access to
a best-in-class high-value appraisal
product. More importantly, our clients
will continue to have the Perfect
Customer Experience they associate
with CIS Group.”
Cornerstone continues CIS Group’s
consolidation strategy in the field services sector. “We see an increasing
opportunity to add specialty service
providers to the CIS portfolio,” said
David Rollins, president of CIS Group.
“Because CIS conducts over two million
inspections a year across the entire
United States, servicing most of the top
insurance carriers, we believe that consolidating complementary service companies onto the CIS platform will
enable us to continue to provide a
superior level of service to our customers at extremely competitive prices.
We are passionate about increasing
route density with complementary
products for our inspector-vendors,
and sharing those resulting efficiencies
with our vendors and our customers.”
For
more
information,
visit
www.cisgroup.net.
HomeGain and
AgencyLogic Announce
Web Partnership
Mortgage Professionals
to Watch
Rory Lane has been named director
of community engagement for
MortgageDashboard where he will
be responsible for customer support
and corporate objectives through
social media.
Sen. Fred Thompson’s commercial
pushing government-insured reverse
mortgages did it for Tom and Bertha
Akuna of Lake Matata, Minn.*
Tom Akuna, 69, retired two years
ago because of chronic back problems
from decades of back-breaking odd
jobs. Bertha Akuna, 63, is a dedicated
homemaker from the old school. The
couple has no children and no pets.
During pre-lending counseling, the
counselor, Sonia Hudloom, uncovered
two gaping holes in the Akunas’ safety
net: No life insurance policy and no
pension benefits for a surviving spouse.
Although Tom Akuna gets about $900
from Social Security (which covers their
basic monthly living expenses) and their
home is paid for, the absence of life
insurance policies (which the Akunas’
religion forbids) and pension benefits for
a surviving spouse means the Akunas
need to manage their home equity wisely to support the surviving spouse.
In new the Financial Interview Tool
(FIT) process “no life insurance policy
and no pension benefits for a surviving
spouse,” is risk-factor number two.
Along with other risk factors discovered
in counseling, it will appear on the FIT
summary the Akunas will take to their
loan application interview, and their
loan officer should find a way to bring
up the issue. Here is a sample question:
“Mr. and Mrs. Akuna, the paper from
your loan counselor says your home
equity is the largest support you both
have for retirement, how would you keep
it for whoever survives the other?”**
Rory Lane
American Home Mortgage Servicing
Inc. has named David M. Applegate
as its new president and chief executive officer.
Kislak Mortgage LLC has appointed
Edward Scott as its new senior vice
president and southeast divisional
manager.
This question should achieve the FIT
objective of getting the Akunas and
their loan officer to think through and
discuss the Akunas’ long-term financial
survival. It may help them and their
loan officer to come up with the right
mix of loan-advance options (a.k.a. payment plans) to conserve their equity,
while giving them the means to meet
any monthly budgetary shortfall they
may have, a need that resonated when
they watched the Law & Order actor
and former U.S. Sen. Thompson pitching reverse mortgages on TV.
Suppose the Akunas had come to the
loan interview with the intention of
requesting a lump sum, thinking they
can “invest” it for maximum profit. The
above question and the ensuing conversation should give the loan officer
an opportunity to ask a number of follow-up reality-testing questions with
the aim of getting the Akunas to be
more careful with their home equity.
It bears repeating that one or two FIT
risk factors or “yellow flags” may not be
a problem, but a number of them could
be a red flag.
A Fred Thompson commercial may
have motivated the Akunas to consider
a reverse mortgage, but a FIT question
could help them and their loan officer
think through and discuss the holes in
their retirement safety net.
*Tom and Bertha Akuna, as well as Lake
Matata, Minnesota, are fictional.
**Please give me your feedback (e-mail
me at [email protected]) on the
strengths and weaknesses of this question, as well as your suggestions for
improvement.
Atare E. Agbamu is author of Think
Reverse! and more than 140 articles on
reverse mortgages. Since 2002, he writes
the nationally-distributed column,
“Forward on Reverse.” A former director
of reverse mortgages at Minneapolisbased AdvisorNet Mortgage LLC, Agbamu
has years of hands-on experience marketing and originating reverse mortgages.
Through his advisory, ThinkReverse LLC,
Agbamu advises financial professionals,
institutions and regulators across the
country. In a 2007 national report on
reverse mortgages, AARP cited Agbamu’s
work. He can be reached by phone at
(612) 203-9434 and e-mail at
[email protected].
Visit author Atare E. Agbamu’s
blog at thinkreverse.com for
his thoughts and insights
on the reverse mortgage
marketplace.
25
JANUARY 2011
Annaly Capital
Management Inc.
has announced
the formation of Shannon Funding LLC, a
wholly-owned subsidiary that intends to
provide warehouse financing and other
services to residential mortgage originators in the United States. Shannon will be
led by Bruce E. Watterson, a veteran
mortgage finance executive who most
recently was a managing director at LPS
Capital Markets, a division of Lender
Processing Services Inc. (LPS). Shannon,
which will operate out of offices in
Bellevue, Wash., plans to begin operations in the first quarter of 2011.
Holes in the Safety Net
Annaly Capital Announces
the Formation of
Shannon Funding LLC
FIT for Reverse Mortgage Lenders:
Part V
NationalMortgageProfessional.com HomeGain, a
Web site that
connects real
estate agents with homebuyers and
sellers, has announced that it has partnered with AgencyLogic to provide single property Web sites to its real estate
agent and broker members. The
HomeGain Property Web sites enable
real estate agents and brokers to showcase a single home listing to potential
buyers and sellers. Each single property
site provides a custom domain name,
ability to add videos and unlimited
photos, syndication to the major search
engines, and sharing on social networking sites.
“We are always searching for ways to
help our agent members, and these single
property websites are an excellent marketing tool for them to help sell their
clients’ homes,” said Louis Cammarosano,
general manager of HomeGain.
“This partnership builds upon our
existing and long standing relationship
with HomeGain, a premium brand in
the real estate industry,” said Stephen
Fells, chief executive officer and cofounder of AgencyLogic. “Single property Web sites are a perfect addition to
the existing HomeGain product line
and compliment the many other ways
the company helps Realtors.”
For more information, visit www.agencylogic.com or www.homegain.com.
“Now more than ever, new mortgage origination activity is dominated
by the handful of large money center
banks with ready access to capital,”
said Michael A.J. Farrell, chairman,
chief executive officer and president of
Annaly. “Small- and medium-sized
mortgage companies with good credit
cultures and successful track records
are challenged to source warehouse
funding in this environment. Shannon
plans to provide funding to these
smaller participants in order to help
them generate well-underwritten mortgage product. As opportunities present
themselves in the future, Shannon will
expand its strategy and operations into
additional markets.”
Watterson has more than 25 years of
experience in mortgage banking, due
diligence, servicing and technology. He
was founder of Watterson-Prime LLC
which provided due diligence, portfolio
stratification and other consulting services to buyers and sellers of financial
residential and commercial mortgage
assets, and also launched WattersonPrime Software Inc., a software and
technology company serving the assetbacked finance industry. Watterson’s
prior experience includes senior positions in the mortgage, hedging and
structuring groups at First Boston and
Shearson Lehman Hutton, as well as
head of the due diligence practice at
PricewaterhouseCoopers LLP. Watterson
received his BA degree at Miami
University in Oxford, Ohio.
Annaly manages assets on behalf of
institutional and individual investors
worldwide. The company’s principal
business objective is to generate net
income for distribution to investors
from its Investment Securities and from
dividends it receives from its subsidiaries. Annaly is a Maryland corporation that has elected to be taxed as a
real estate investment trust (REIT).
For more information, visit www.annaly.com.
When are the RBP Disclosures sent?
With respect to close-end (residential real property) credit:
The RBP Disclosures are provided before consummation of the transaction, but
not earlier than the time the decision to approve an application for, or a grant,
extension or other provision of, credit, is communicated to the consumer by
the creditor.8
RBP Disclosures are required to be sent individually and separately. These disclosures cannot be combined with any other non-FACTA documents and/or
required disclosures.
What are the Model Forms?
With respect to closed-end (residential real property) credit, there are four Model
Forms provided. Technical modifications to the language of the forms are permitted, providing a “safe harbor,” as long as the substance of the model forms is not
modified.9
1. Model Form for Risk-Based Pricing Notice
2. Model Form for Account Review Risk-Based Pricing Notice
3. Model Form for Credit Score Disclosure Exception for Loans Secured by One to
Four Units of Residential Real Property
4. Model Form for Loans Where Credit Score is Not Available
Are there exceptions?
There are five exceptions to the RBP Disclosure compliance requirements.
1) Application for specific terms: A creditor is not required to provide a riskbased pricing notice if the consumer10 applies for specific material terms11 and is
granted those terms, unless those terms were specified by the creditor using a consumer report after the consumer applied for or requested credit and after the
creditor obtained the consumer report.
26
2) Adverse action notice: A creditor is not required to provide a risk-based pricing notice to a consumer12 if the creditor provides an adverse action notice to the
consumer under section 615(a) of the FCRA.13
3) Prescreened solicitations: A creditor is not required to provide a risk-based
pricing notice to a consumer14 if the creditor:
(i) Obtains a consumer report that is a prescreened list as described in section 604(c)(2) of the FCRA; and
(ii) Uses the consumer report for the purpose of making a firm offer of credit to the consumer; or, provides more favorable material terms.
This exception applies to any Firm Offer of Credit offered by a creditor to a consumer, even if the creditor makes other Firm Offers of Credit to other consumers
on more favorable material terms.
4) Loans secured by residential real property–credit score disclosure: A creditor is not required to provide a risk-based pricing notice to a consumer15 if:
(i) The consumer requests from the creditor an extension of credit that is
or will be secured by one to four units of residential real property; and
(ii) The creditor provides a notice to each consumer containing the following:
A. A statement that a consumer report (or credit report) is a record of the consumer’s credit history and includes information about whether the consumer pays his or her obligations on time and how much the consumer
owes to creditors;
B. A statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time
to reflect changes in the consumer’s credit history;
C. A statement that the consumer’s credit score can affect whether the consumer can obtain credit and what the cot of that credit will be;
D. The information required to be disclosed to the consumer pursuant to section 609(g) of the FCRA;16
E. The distribution of credit scores among consumers who are scored under
the same scoring model that is used to generate the consumer’s credit score
using the same scale as that of the credit score that is provided to the consumer, presented in the form of a bar graph containing a minimum of six
bars that illustrates the percentage of consumers with credit scores within
the range of scores reflected in each bar or by other clear and readily
understandable graphical means, or a clear and readily understandable
statement informing the consumer how his or her credit score compares to
the scores of other consumers. (See Model Form # 3, hereinabove.)
MortgageDashboard
Announces LOS Upgrade
MortgageDashboard,
an on-demand loan
origination system
(LOS) enabling straightthrough, paperless mortgage processing for
lenders, credit unions and banks, has
released a major upgrade to its SaaS
LOS. The new functionality will allow
originators to attract new business, take
applications, process and close the loans
without leaving the software. The new
version offers contextual navigation
based on fully customizable templates
that streamline the process and ensure
compliance.
“Advancements like this are possible
because we’re approaching software
development from a totally different
perspective,” said MortgageDashboard
Chief Technology Officer Jorge Sauri.
“Our template-based approach will
make it possible to customize
MortgageDashboard quickly and easily
to fit the kind of lending our clients are
doing. We’re providing niche-based
marketing power in a Web-based tool
that delivers bullet-proof compliance
in an interface so easy to use it won’t
even feel like work.”
The new version was rolled out to
existing clients in early October and is
now ready for new clients. Pricing is
currently on a per-transaction basis
and there is no upfront fee for the use
of the platform.
“We set out to build a more intelligent, powerful and flexible enterprise
resource than our industry has ever
seen before,” said Rene F. Rodriguez,
MortgageDashboard chief executive
officer. “Ultimately, the success of
lenders in the future will depend
directly on the success of the loan officers working within their companies.
Solid loan origination technology is the
cornerstone of the loan officer’s success. With this new version, we’re providing them with a strong foundation.”
Rodriguez said that MortgageDashboard
would be providing both support for the
company’s LOS technology, as well as other
forms of support for loan officers using
the company’s products, including
sales training, marketing support and
motivation tools. Much of this support will be provided through the
company’s new Web site at
www.mortgagedashboard.com.
In
addition,
Sauri
said
MortgageDashboard would maintain
an aggressive schedule of future
updates, rolling out new functionality
for the LOS about every 30 days.
Updates to the software that are
already scheduled include:
A “Quality Coach” that follows
each originator through the transaction, warning them of compliance violations in real time and
making suggestions that will help
the company originate the best
possible loans.
A new eBriefcase that will collect
and manage all of the documents
that go through the transaction,
keeping everything in its place and
warning the loan officer when an
expected document isn’t in the file
yet.
A more complete borrower summary that will tell originators and managers at a glance what they need to
know about their customers to turn
them into customers for life.
For more information, visit www.mortgagedashboard.com.
Coester Appraisal Group
Announces the Launch of
CoesterReverse.com
Coester Appraisal Group, a nationwide
appraisal management company (AMC),
has announced the launch of
www.CoesterReverse.com, a Web site
for reverse mortgage professionals to
order appraisal products that are specialized for reverse mortgage transactions. Among the services offered on
the site is Coester Appraisal Group’s
ValueSafe Appraisal Program, an innovative appraisal program that can save
borrowers hundreds of dollars on
upfront reverse mortgage fees.
Unlike
traditional
mortgages,
reverse mortgages are not based on the
borrower’s credit or income. However,
the value of the property is of prime
importance. The vast majority of
reverse mortgage lenders have a full
appraisal conducted on the subject
property prior to initiating the transaction. This can cost the borrower $350 to
$450, on average. When added to the
approximately $200 for counseling
mandated by the U.S. Department of
Housing & Urban Development (HUD),
the borrower’s upfront fees can total
$500 or more with no assurance that
the transaction can be fulfilled.
Coester Appraisal Group helps borrowers get an approximate valuation
of their home without incurring a
major investment. Through Coester’s
unique appraisal program, ValueSafe,
borrowers may purchase a preliminary
desktop appraisal for $100, which is
approximately one-fourth the cost of a
traditional appraisal. If the desktop
appraisal indicates enough equity to
fulfill the transaction requirements,
the borrower can apply the amount
paid on the ValueSafe desktop
appraisal to the full appraisal if
ordered through Coester Appraisal
Group. If the desktop appraisal indicates that the property is lacking the
required amount of equity, the borrower has only paid $100, as opposed
to the full appraisal fee.
“Borrowers are risking hundreds of
dollars in preliminary fees for transactions that may not even qualify for a
reverse mortgage,” said Brian Coester,
chief executive officer of Coester Appraisal
Group. “We created CoesterReverse.com
to provide reverse mortgage professionals
with direct access to money-saving valuation alternatives. If completed prior to
counseling, a ValueSafe appraisal can
save upwards of $500 in upfront fees.
That is a huge amount of money, particularly for those relying on retirement income. We’re hopeful that this
money-saving option will become the
new standard for evaluating property
values for reverse mortgages.”
For more information, visit www.coesterappraisals.com or www.coesterreverse.com.
ates a GFE with real-time settlement
service fees for local, state and national
closing services.
Encompass Assured GFE can be configured to offer a company’s preferred
providers, and is backed by a
ClosingCorp compliance guarantee that
rates and fees are presented in realtime and will not result in a HUD-1 tolerance violation. Users can easily order
these services through Encompass360
and a compliance guarantee certificate
is saved in the users’ Encompass360
eFolder.
“We believe that the number one
concern of lenders today is how to stay
compliant and how to control the costs
of staying compliant, particularly with
so many changing and new regulations,” said Jonathan Corr, chief strategy
officer for Ellie Mae. “We’re here to help
our customers with compliance. Our
customers rely on us to provide the
tools they need to maintain compliance
and promote total loan quality.
Encompass Assured GFE is one more
way we’re responding to our customers’
needs.”
“Integrating this simple but powerful
compliance tool within a loan originator’s workflow, allows lenders to prepare GFEs quickly, select their trusted
providers, and access live rates along
with recording fees and transfer taxes,
in a few easy steps,” said ClosingCorp
President Paul Mass. “Borrowers tend to
select lenders who respond rapidly to
their loan requests; this new service not
only helps drive more business but
assures the lender that the data used
will meet HUD’s RESPA accuracy
requirements.”
For
more
information,
visit
www.elliemae.com or www.closingcorp.com.
Ellie Mae and
Closing.com Launch New
Encompass Assured GFE
Kroll Launches Risk-Based
Pricing Compliance
Service
www.radian.biz | 877.723.4261
www.msiloans.biz
Automate your Marketing! Double your Sales!
(888) 771-7672
www.MortgagePlannerCRM.com
27
JANUARY 2011
Mortgage Center as a residential lender.
Joe Adamaitis has been appointed
state of Florida FHA 203k representa- Mortgage Harmony Corporation has
named former Mortgage Bankers
tive for Academy Mortgage Home
Association (MBA) chairman David G.
Loan Corporation.
Kittle, CMB to its advisory board and
has also announced the appointment
of Marlisa Senchack as senior vice
president of product management
and strategic outreach.
MDA Lending Solutions has named
John Hosey as its chief appraiser.
Valuation Partners has announced the
hiring of Dawn Svedberg as vice president and national account executive.
Joe Adamaitis
Williston Financial Group LLC (WFG)
has named William Moody execu ICBA Mortgage Solutions has named
tive vice president of WFG’s lender
Michael Azzarello as its new execuservices division, New Millennium
tive vice president of national sales.
Title and has named Moody to
Susan Anderson has been named
WFG’s executive committee.
vice president of sales for the northeast region for InHouse Solutions.
Pulaski Financial Corporation has Your turn
named Brian Boyles president of National Mortgage Professional Magazine
invites its readers to submit any inforPulaski Bank’s mortgage division.
Patrick Harrigan, CMB of Franklin mation, events, passages, promotions,
American Mortgage Company has personal or professional occurrences
been named chairman of the Mortgage that seem appropriate and/or other perAction Alliance Steering Committee, tinent data to the attention of:
the grassroots advocacy affiliate of the
Heard on the
Mortgage Bankers Association (MBA).
Street/Mortgage
Vinod Thomas has been named senProfessionals to Watch
ior vice president, default strategy
column
and execution for ServiceLink.
Phone #: (516) 409-5555
Equi-Trax Asset Solutions LP has
E-mail:
announced the hiring of Greg Musso
[email protected]
as national sales director.
Ron Zaccaria has been appointed
vice president of sales for BluFi Note: Submissions sent via e-mail are preferred. The deadline for submissions is the
Direct Mortgage.
Brad Farris has joined Guaranty Bank 1st of the month prior to the target issue.
Kroll Factual Data, a provider of independent verification solutions, has
announced a new service to help clients
save time and efficiently comply with
the Fair Credit Reporting Risk-Based
Pricing Regulations that take effect Jan.
1, 2011. Customers can now take advantage of the ability to automatically generate Risk-Based Pricing Notices with
each credit report request at no charge
and an optional automated fulfillment
service to print and mail notices to
applicants for a nominal fee.
“We have been paying close attention as this new regulation was being
created, and working to educate our
customers about their need to
respond,” said Dennis Littlejohn, chief
operations officer of Kroll Factual Data.
“Once the scope of the Fair Credit
Reporting
Risk-Based
Pricing
Regulations was clearly defined, we created this convenient way for our users
to meet the new obligations it created
for them.”
NationalMortgageProfessional.com Ellie Mae and
Closing.com
have announced
the launch of
Encompass Assured GFE service powered
by Closing.com’s SmartGFE Service. With
Encompass Assured GFE, Encompass360
users can now create Good Faith
Estimates (GFEs), which are backed by a
ClosingCorp compliance guarantee,
directly from their Encompass360 systems. The January 2010 changes to the
Real Estate Settlement and Procedures
Act (RESPA) have created new compliance challenges for mortgage lenders
and brokers. One such change involves
the disclosure of fees provided to the
borrower on the GFE and HUD-1 forms,
which now must fall within certain
accuracy tolerances.
Encompass Assured GFE utilizes the
same platform as Closing.com’s
SmartGFE Service and is private-labeled
for use by Encompass360 customers.
Once the borrower’s information is
entered into Encompass360, users simply click the “Assured GFE” button,
select the service providers from whom
they’d like to receive quotes, and within
seconds, Encompass Assured GFE gener-
heard on the street
FHA Insider: REO Investors …
An FHA Referral Source You Must
Have in Today’s Market
Working With Investors and FHA Loans
By Jeff Mifsud
28
You have a great opportunity in 2011 to other fields and form amateur REO
help improve neighborhoods by help- investment groups with peers. Thus,
ing investors get their buyers approved offering ways in which you can assist
with Federal Housing Administration them with marketing removes a large
(FHA) loans! As the economy chugs burden from them, and is always
along and banks continue to release appreciated.
their real estate-owned
(REO) inventory in waves,
Finding real
great FHA origination
estate investors
opportunities will exist
The following are five
for mortgage loan origiways to locate real estate
nators (MLOs) in the foreinvestors:
seeable future.
There are three reasons
1. Real estate investor
why investors and MLOs
associations
make a great partnership.
If you haven’t attended
To begin with, my expethese events, it’s time you
rience has shown that
start! These groups consist of
investors generally do not
investors coming together to
possess a great deal of
share ideas. There is usually
“REO agents have
knowledge about buyer
a feeling of camaraderie,
listing contracts with
financing. Your expertise is
making networking simpler.
banks to sell their
important to, and welTo find an association,
comed by, investors, allow- foreclosed properties.
search the Internet for your
ing them to focus on get- Contact these agents,
area. One good resource is
explain that you
ting the renovations comwww.reiclubdirectory.com.
pleted and the property
assist investors with
ready for market.
2. REO agents
helping them underSecondly, investors
REO agents have listing constand how FHA can
are not inundated with
tracts with banks to sell
help them be more
calls from MLOs, as is
their foreclosed properties.
profitable, and ask
often the case with real
Contact these agents,
them for names and
estate agents. While
explain that you assist
numbers of investors
investors do tend to be
investors with helping them
they work with.”
harder to find, once you
understand how FHA can
find them, you may find
help them be more profit easier to arrange a meeting with itable, and ask them for names and numthem. This is especially true if you have bers of investors they work with.
a clear message that communicates Additionally, insofar as investors often use
how much you can help them.
agents to buy property but not to sell it, you
And finally, investors are often chal- may end up generating the agent’s curiosity
lenged with a lack of resources to prop- and setting up a meeting with them as well.
erly handle the marketing of their Your goal is to get the names of investors,
properties. Many are trying to simulta- but if you end up setting an appointment
neously perform the jobs of real estate with the agent too, that’s a bonus!
agent, general contractor and marketing director. In fact, many investors 3. “For Sale” signs
often have primary employment in Often, “For Sale” signs are posted at
vacant homes and homes being renovated. This is a good indication the
home is investor-owned. Call the number on the sign or stop by when you see
workers at the property to get the name
of the investor.
2. Flyers
Create flyers for the property advertising financing information and the fact
that buyers need little money down.
Distribute them to homes in the surrounding neighborhood.
4. Business networking groups
These groups are great ways to get referred
to investors. Once, at a BNI group meeting,
when I asked for referrals to investors, I
received three right on the spot!
3. A call capture system
Advertise your investor’s properties with
a toll-free number, offering information
about the property, thereby creating
leads. Again, note to adhere closely to
RESPA guidelines. This may sound old
fashioned, but signs still generate leads.
You never see an agent list a home without a sign … well no home should go
without a finance sign as well.
5. Sphere of influence
If you don’t belong to a networking
group, inquire within your own contacts to find investors. You may be surprised at how many investors you find
this way.
Now that you have arranged a meeting … now what? Give them four reasons why FHA is the loan of choice for
investors:
1. There is only a 90-day seasoning
requirement calculated from the date
the deed is signed. Because of the history of fraud with property flipping, many
lenders have a 12-month seasoning.
2. Through the use of government
agency down payment assistance programs, the entire amount of the buyer’s
funds can be covered with no expense
to the seller. Check you area for local
homebuyer programs.
3. Their buyer gets a better loan. This creates a happier client who may refer friends
to buy other homes the investor offers.
4. With FHA, there is a lower credit
score requirement.
Give them five ways to market their
properties:
1. Finance signs
Get signs made that state clearly how
much they need to put down and the
amount of the monthly payment. Have
signs printed with the spaces for down
payment and monthly payments blank
so you can customize each sign to its
property. It’s worth the extra effort and it
generates more leads. Be sure to follow
Real estate Settlement Procedures Act
(RESPA) guides and include the annual
percentage rate (APR), the loan type and
terms of the loan.
4. Brochures
Create a personal brochure for potential buyers.
5. Homebuyer guides
Publish informational homebuyer guides,
educating clients about homeownership.
I highly recommend LoanToolbox.com
to help you with your marketing efforts.
True to their name, no company in the
country provides more tools for the originator looking to grow their business. With
just a few clicks, you can create powerful
marketing pieces, and then get back to
what you do best: Originating loans.
The FHA Streamline K
Finally, I want to make you aware of
the enormous market that exists right
now in many metropolitan areas for
an FHA product called the Streamline
K. Also known as the “Baby K,” this is a
203k rehabilitation loan for primary
occupants only. The loan allows the
buyer to finance up to $35,000 for the
purpose of cosmetic repairs only.
Some items eligible for financing
include: Kitchens, bathrooms, roofing,
windows and even appliances (sorry,
no wall mounted plasma TVs). For further information, go to HUD.gov and
search for HUD Handbook 4155.2 and
Mortgagee Letter 2005-50. For a full
list of 203k Mortgagee Letters, visit
www.hud.gov/offices/hsg/sfh/203k/20
3kltrs.cfm.
This product has tremendous potential for two major reasons: One, the
banks that price their REO properties
too high leave little or no room for
investor profit. Two, there are more
consumers than investors available to
purchase these homes. The Streamline
K has the potential to be a key factor in
improving neighborhoods: It allows
the investor’s buyers to use government funds to finance renovations, it
puts a primary occupant in the home
(rather than a renter), and it leaves the
buyer with a great loan product.
Fellow originators … you have a
great opportunity to create a very profitable and stable niche for yourselves
by creating a group of investors who
rely on you to help them finance the
buyers of their homes. Create an plan
of action for 2011 to develop your network of real estate investors.
Go FHA!
Jeff Mifsud is founder of Michigan-based
Mortgage Seminars LLC, a former FHA
underwriter with 15-plus years of experience originating FHA loans, an FHA expert
for LoanToolbox.com and creator of The
FHA Originator, a monthly FHA newsletter.
Jeff may be reached by phone at (248) 4038181 or visit www.MortgageSeminars.com.
Remembering the REO Basics
By David Shelton
Evaluating performance
One thing that I was taught and have
never forgotten is that you cannot
manage what you cannot measure.
You have to know if your disposition
strategies are working effectively so
that adjustments can be made as needed to maximize performance. We constantly evaluate our performance and
the performance of our partners
(agents, closing companies and valuation specialists) against a standard for
our key performance indicators. While
a number of areas are tracked, our key
measurements for the disposition
process are average days on the market, average sales price to list price,
JANUARY 2011
You notice that I said “reasonable” rather
than “accurate.” I really don’t know how
to determine if a broker price opinion
(BPO) or appraisal value is accurate; only
if it is reasonable. Experience shows that
It doesn’t matter if you manage your
inventory in-house or outsource to
asset management companies, you
have to rely on partners nearby the
property. We have found that the key
partnership is in selecting the right
listing agent for the property. It seems
The age old question … do we rehab
the property? If so, to what extent?
What kind of repairs are really necessary? The old adage of “throwing good
money after bad” is true so you have to
be careful. Likewise, “you have to
spend money to make money” is also
true, but again, you have to be careful.
The key is to understand which one
applies so that you are making an
investment rather than incurring an
added expense. I have worked with
institutions that had hard and fast policies on REO repairs and rehab. I
worked with one that wanted every
property rehabbed to “AS IS” means
“AS IS,” and outside of required preservation, wouldn’t spend a dime. Neither
had any real flexibility. In today’s market, common sense, flexibility and
good judgment are the keys to maximizing value on your REO sales.
Extremes in either direction will end
up costing you money. You have a lot
of information available to you to
assist in making these decisions that
may not be obvious. For example, a
good BPO will tell you, based on prop-
29
carefully
Obtain reasonable
valuations
Maximize value
erty condition, value and location, who
the most likely buyer will be. Are we
marketing to an investor or an owner
occupant? The agent will provide recommendations as to the minimum
repairs needed to attract the target
buyer. The BPO should also tell you if
the property will qualify for most
financing types in its current condition,
and if not, what issues must be
addressed in order to qualify.
Additional information is available in
the BPO that can be used to solidify
your decision. Is the neighborhood stable or on the decline? How many properties are currently for sale in the area
and how many of these properties are
REOs? Are there boarded up properties
in the immediate vicinity, and if so,
how many? What is the percentage of
rental properties compared to
owner/occupied properties in the
neighborhood? Use the information
available to identify your target market
and understand what is necessary to
meet the needs of that market.
For years, the primary market for
REOs was investors. Over the past few
years, we have seen a large increase in
the number of buyers looking to purchase a primary home. Sales to owner
occupants are generally going to bring
a higher sales price, but there are also
generally more issues to be addressed
on these sales. Most homebuyers are
going to require financing. While you
can get the buyer to insure that they
have the required funds for downpayments and a pre-approval from a reputable lender, the property also has to
qualify for the loan. By recognizing and
addressing any property issues that
would limit financing upfront, not only
are you going to save time in getting
the deal closed, but will often generate
higher offers. Your asset managers
need the information to develop an
effective marketing plan for each property and the flexibility to implement it.
NationalMortgageProfessional.com It was probably 1974 when I managed if you have a reasonable valuation, you
my first real estate-owned (REO) prop- most likely also have an accurate one.
erty. Foreclosures were rare and there We determine reasonableness by reviewwas plenty of time to give individual ing the valuation for certain factors. Are
attention to each REO asset. How times the sold and listed comps used really
have changed! The one thing that has- comparable to the subject property? Are
n’t changed for anyone managing an the comps the same age, style, condition
REO portfolio is the need to dispose of and location? Are the sold comps used
the inventory as quickly as possible, reflecting current sale dates or stale?
while at the same time, maximizing How long have listed comps been on the
market? Have reasonable
recovery. Which of these
adjustments been made
two areas takes priority
for differences in the
at any given time is based
comps used and the subon the makeup of your
ject property? We are sellportfolio and internal
ing an REO … are we using
goals. Your marketing
REO comps? Because havstrategies will be formuing a high confidence level
lated based on that priorin the valuation is so critiity. As your inventory
cal to pricing, we always
swells, every market
recommend getting multiseems to be saturated
ple valuations. A little
with REOs, and everyextra money spent in this
thing starts getting really
area can make a big differcomplicated, it is tempt“By recognizing and
ence in your overall recoving to start looking for a
addressing any propery rates. I have worked in
gimmick. Oftentimes, the
erty issues that would
environments where the
key to keeping things
limit financing
acceptable sales prices
manageable is simply
upfront, not only are
were based on a percentremembering the basics.
you
going
to
save
time
age of the remaining prinI’ve broken this down
in
getting
the
deal
cipal balance of the loan.
into some areas that I
closed, but will often
In today’s market, I believe
think every REO manager
must consider.
generate higher offers.” that acceptable sales
prices must better reflect
the current local market
1. Obtain reasonable valuations and price your properties to conditions and pricing set based on current valuations. Otherwise, your properreflect current market conditions.
2. Choose the right partner for the job. ties sit and carrying costs escalate.
3. Maximize value.
Choose your partners
4. Evaluate performance.
that today, every agent out there
wants to be an REO agent. That is
understandable since that is where
the sales are, but wanting to sell REOs
and being qualified to sell REOs is very
different. It’s kind of like the dentist
from the United Kingdom that I met a
couple of years ago while on vacation.
He told me that Botox injections were
all the latest rage in the UK and a lot
of money was being made. He was
going to take a two-day training
course and start administering Botox.
Maybe there are some folks out there
that will get Botox injections from a
dentist, but I think I’ll pass! In addition to understanding local market
conditions and the special challenges
associated with marketing REOs, a
good REO agent is also up to date on
the latest code requirements, vacant
property registration requirements,
city-required inspections and all of
the other ever-changing local requirements for REO/vacant properties.
Keeping the property in compliance
with local codes and requirements
can save the seller a lot of unnecessary expense from fines and assessments, as well as keep the migraines
to a minimum. We have a number of
agents that do a great job selling
properties in the $30,000-$150,000
range but do not do well on the highend luxury properties. Other agents
are great on the high-end, but not on
the average properties. To obtain the
best results, we always want to use the
specialists.
average sales price to valuation, and
average days to close once under contract. These measurements are drilled
down to the individual agent, title/closing company, or appraiser level and
allow us to base our partnership decisions on objective data. This also allows
us to recognize when we need to modify our processes or partner relationships to meet specific client needs.
With everyone from the federal government to local municipalities and
homeowners associations (HOAs) getting involved and imposing obstacles to
the REO management process, you will
certainly continue to be thrown curveballs and flexibility will be required. In
this ever-changing environment, a continued focus on the basics will generally serve you well. Keep in mind, you can
try the trick plays, but it is more often
the best blocking and tackling that wins
the close games.
David Shelton is chief operating officer of
Turnkey Asset Management Solutions in
Newport, Ky. Turnkey manages the preservation, valuation, and disposition of REO
properties on a nationwide basis. He may
be reached by phone at (859) 815-6905 or
e-mail [email protected].
Structuring Effectively for
REO Disposition
By Derrick Logan
30
We are now three years into the that’s if the shadow inventory doesn’t
nation’s retreat from historically high set off another round of foreclosures.
Fortunately, things are changing.
homeownership rates, with millions of
homes transferring out of the hands of
delinquent borrowers and back into A new approach to REO
the banks that held their mortgages. In It was at the National Property
the third quarter of last year, the last Preservation Conference in November
period for which data is currently avail- that the U.S. Department of Housing &
able, the Mortgage Bankers Association Urban Development (HUD) reiterated its
(MBA) reported that 13.78 percent of all plans to split its property preservation
and asset management
borrowers were either in
groups into separate
foreclosure or at least one
departments. It was a
payment behind on their
move that put the federal
mortgage.
agency in line with the
The MBA has estimated
best of the industry’s asset
that nearly two million
management companies
bank-owned properties
and one that will likely
were on the market at the
make the agency more
end of 2010, with twice
successful in the future.
that many at least 90 days
Until recently, the
delinquent and heading
two departments operatdown the path to forecloed as a single unit within
sure. Guhan Venkatu of
“The
truth
is
that
the
HUD. Separating properthe Federal Reserve Bank
structure of an REO
ty preservation and asset
of Cleveland has estimated that the shadow inven- asset management firm management is a strong
move that will allow
tory, those real estatemust be a reflection of
HUD to deal more effecowned (REO) properties
how it approaches the
tively with the influx of
that banks already own
work it does.”
foreclosures, disposing
but have not yet released
of properties faster and
into the market, accounts
more
efficiently
than in the past.
for another four million or so homes.
There was a time when the older
That many homes would take well
over a year to sell in the current envi- model made sense and many asset manronment. RealtyTrac reported last year agers utilized a similar internal structure.
that roughly one-quarter to one-third With fewer REO properties to deal with,
of all real estate sales in the first half of companies could operate with smaller
2010 were homes in some state of fore- teams and cross-train them for increased
closure. If nothing changes, it could efficiency. But it makes much less sense in
take years for the industry to cycle today’s market.
Today’s asset managers are flooded
through the REO lot that we already
have coming into the market, and with properties, many of which are
either already in a state of disrepair or
at risk of becoming so. Banks are taking back homes of every description in
neighborhoods of every kind all over
the country.
There are critical tasks that must be
completed for both preservation and
disposition of the REO. With the work
coming in so rapidly, it would be easy
to overload and overwhelm a firm that
tried to accomplish both functions
within the same department.
Over the past 18 months, most companies working in this space have
found that there is sufficient work to
employ full-time teams in both areas.
In fact, because of the time-related
expenses involved, it makes good sense
to do so. Time is a critical concern in
this business. The longer a non-performing asset is held in portfolio, the
more money is sacrificed on a daily
basis.
An effective structure
for success
Over the past 13 years, we have been
developing the systems in use my company, REO Allegiance. We believe that
HUD’s move to separate these two
departments will make the agency
more effective because we have
become more effective and successful
when we began to separate the various
functions that go into the work we do
for servicers and investors. But HUD’s
move is only the beginning.
With today’s high REO volume and
the need to dispose of every property
as quickly as possible, it is imperative
that asset managers isolate every critical function required for both property
preservation and REO disposition and
scrutinize the processes that lead to
successful outcomes. When this is
done, it becomes clear that there is a
single set of steps that leads to the optimum outcome in the shortest period of
time. In fact, the goal is to visualize the
workflow as a sequence of steps leading directly to accomplishing that goal.
In the end, the best companies have
found that separating property preservation from REO disposition is only the
beginning.
When we consider the work pertaining
to property preservation, the goal is
clearly to protect and preserve the property. To achieve this goal, the work
required for each property must flow
through several departments, each with
its own specific list of tasks. For instance,
in our firm, we utilize an order placement team, a property preservation
team, a quality assurance team, a recurring service team and an eviction team.
There are also auxiliary functions that
must be considered, such as vacant property registration and utility management.
By breaking the work down and distributing it effectively across these teams, we’re
able to process thousands of orders at any
given time efficiently and without errors.
On the other side of our business,
REO disposition has its own set of complicated issues that must be carefully
analyzed and then managed to achieve
the goal of 100 percent REO disposition. To meet that goal, real estate brokers are assigned, marketing plans are
formulated, a selling price is agreed
upon for each property, contracts and
closing issues are resolved, rehabilitation issues may be referred back to us
for preservation and many other tasks
and processes must be accomplished
quickly and correctly. It doesn’t make
sense for all of these functions to reside
within the same department in an environment like the one we’re experiencing today.
Of course anytime you decentralize any
operation, communications and information technology become critical concerns.
Without the right technology to keep information flowing freely across the enterprise,
firms with any number of departments are
just as sure to fail. To be successful, it’s
important that the company’s IT specialists
also have a complete understanding of
REO preservation and disposition.
The perfect structure for
success
Given this discussion, it may yet be
unclear how many departments it actually takes to be effective at both maintaining properties and effectively disposing of
bank-owned real estate. There can be no
question that structuring a firm to deal
effectively with the work it will face as it
fulfills its function is an important part of
being an industry leader. At REO
Allegiance, we’ve spent a great deal of
time and effort making sure that our
structure is conducive to efficiency and
error-free operation.
The truth is that the structure of an
REO asset management firm must be a
reflection of how it approaches the
work it does. Firms that take a specialist’s approach to their business are likely to have more departments, each
focused on the critical tasks that are
crucial to their part of the business.
It will be interesting to see what HUD
does next in regard to their portfolio of
real estate. It’s heartening to see that the
agency has taken the first step in the right
direction.
Derrick Logan is director of business development of Bayonne, N.J.-based REO
Allegiance, a nationwide property preservation and eviction services company. He may
be reached by phone at (201) 746-8734, email [email protected] or
visit www.reoallegiance.com.
The Need for Transparency
Has Never Been Greater
By Damien Chiodo
Mortgage Insurance Agency, Ltd. is the largest writer of State
Licensed Surety Bonds, Errors & Omissions, and Fidelity Bond
coverage for Mortgage Bankers and Mortgage Brokers.
Visit us online at www.mtgins.com.
Phone: (866) 355-9944 / E-Mail: [email protected]
31
e-mail: [email protected]
visit: www.calyxsoftware.com
JANUARY 2011
as open and honest as possible. The local
Broker is usually the only contact a borrower will have with an industry professional. It hasn’t helped that the agenda
gap between servicer and agent continues
to widen, even while real estate agents are
the group that servicers depend upon the
most to carry out their initiatives.
That’s why, if we are to change the perception of our industry, it must be on a local
level. This is the key point that most financial institutions have missed. After all, it
does no good to have lofty initiatives if the
people you are asking to carry them out,
simply don’t care.
So, how do servicers and banks get local
agents to comply with their initiatives?
A good place to start would be the
traditional stance of non-disclosure
that is widely accepted as the norm in
real estate markets across the country. I
don’t know how or why someone convinced all real estate agents that nondisclosure was the only way to uphold
their fiduciary duty to their clients. A
closed door policy will never calm the
nerves of the consumer.
This practice has made it more difficult for families to buy an REO property
during what should have been one of
the more satisfying half decades for
first-time homebuyers. Non-disclosure
has propped open the door and let
agent fraud and deception stroll right
in. It has eliminated the fairness and
honesty in what should be a completely transparent process.
After all, we are selling someone’s
dreams, not widgets. If I make a transaction involving a 30-year commitment
and my life savings, I want it to be totally transparent.
I first fell in love with the idea of
transparency as a rookie REO broker. I
couldn’t understand why agents would
fail to return calls, be courteous or disclose offers. When I finally got my first
REO listing, I was determined to not be
one of those agents. I listed the home
on the local MLS and included the
remarks “open negotiation and proactive communication is encouraged,
call agent anytime for the current highest offer.”
Not so stunningly, I received a call
days later from my local MLS association. Apparently, a rival agent didn’t
like my philosophy of total openness
and had called her local association to
complain.
NationalMortgageProfessional.com Years from now, when all of the real
estate-owned (REO) agents, asset managers, vice presidents and directors are
back to originating loans, will we have
learned anything?
Ironically, many of the same leaders in
the default industry had a hand in a lot of
the originations that ultimately became
foreclosures. I certainly applaud those
individuals for evolving with the market.
Heck, I am one of those individuals. But I
didn’t write this piece to scold bad mortgage bankers or real estate agents. Every
industry has its good and bad apples. My
question is simple … What can we, the
people on the front lines, do to better our
industry?
Servicers and banks have certainly at
least appeared to do their share. Under the
direction of the Obama Administration,
the government-sponsored enterprises
(GSEs) have been able to slow the bleeding
and curb the drastic reduction in property
values by slowly releasing their bankowned inventory to the market. Servicers
and banks around the world have
increased their staff and have changed
their policies to accommodate the wave of
underwater borrowers in their portfolios.
Short sales are being conducted three
times faster than they were just two years
ago and 10 times faster than they were
just four years ago. Laws have changed to
give more relief and options to tenants
who are victims of foreclosure. The regulations and requirements needed to originate loans have increased as well.
In other words, lots of things have been
and are being done to improve the current
process. But while progress has been made,
our industry has never been seen in such a
skeptical, negative light as it is viewed now.
Considering the past reputation of the
financial industry, that’s saying a lot.
Loan officers and real estate agents
have often been generalized as “overpaid crooks.” To the general public, loan
originators and agents just fill out some
forms, make some calls and get paid
thousands of dollars to do it. Well, 80
percent of the time they’re right. After
all, we are all aware of the 80/20 rule.
Whether you think that’s true or not is
irrelevant. It’s clear we have a lot of work
to do if we ever want to erase the negative stigma that our industry carries.
A home purchase is the single most
important investment most people will
make in their lives. As an industry, we
owe it to the public to make that process
It seems that the supposed stan- tion of an entire industry and gain the
dards of real estate negotiation had trust of a public that stopped believing
become so jaded, that even the associ- anything we had to say years ago.
ation responsible for its policing
Even Fannie Mae has recently
thought the “radical” idea of full disclo- released an online portal where buyers
sure was illegal or against its rules. It and their agents submit offers directly
was at that moment that I realized the to the seller, bypassing the listing agent
industry needed a breath of fresh air.
all together. I can only assume that they
Eventually, I got my
felt it necessary to put this
way and I continued on
portal in place after years
with my transparent
of struggling to get local
model. It was pretty clear
listing agents to comply
that by being transparent,
with their agenda.
I was swimming against
It’s time that we all chalthe current.
lenge ourselves to be proNever one to join the
active in finding ways to
herd, I instructed my entire
improve the process of buystaff to conduct business in
ing and selling real estate
a transparent fashion. We
on a local level. Ultimately,
created disclosures that
no matter what actions seroutlined our written policy
vicers take to improve perand philosophy of total “My question is simformance and execution, it
transparency. We felt that
won’t matter if we don’t
ple … What can we,
while we couldn’t change
gain the confidence of the
the people on the
an entire industry, we front lines, do to betcommon consumer.
could certainly set an
Albert Einstein said, “The
ter our industry?”
example. And truthfully,
significant problems we
the multi-offer process
face cannot be solved at the
became a lot more fun. The agents and same level of thinking we were at when we
buyers I worked with were grateful for a created them.” I’m not about to pick a
stress-free process, where they knew the fight with Albert Einstein … I’ve already
stakes from start to finish and nothing was picked a fight with an entire industry.
concealed or withheld. We felt good about
the way we conducted business.
Damien Chiodo is managing director
Since then, I have urged everyone I and founder of KeyLink Asset
have come in contact with to do busi- Management. He may be reached by eness this way, knowing that with each mail at [email protected]
sale, we can slowly change the percep- or visit www. gokeylink.com.
F. A statement that the consumer is encouraged to verify the accuracy of the
information contained in the consumer report and has the right to dispute
any inaccurate information in the report;
G. A statement that federal law gives the consumer the right to obtain copies
of his or her consumer reports directly from the consumer reporting agencies, including a free report from each of the nationwide consumer reporting agencies once during any 12-month period;
H. Contact information for the centralized source from which consumers may
obtain their free annual consumer reports; and
I. A statement directing consumers to the Web sites of the Federal Reserve
Board and Federal Trade Commission to obtain more information about
consumer reports.
JANUARY 2011 The following documents may be downloaded from the FCRA/FACTA section of
our firm’s Web site Library (http://lenderscompliancegroup.com):
Fair Credit Reporting Risk-Based Pricing Regulations, Final Rule, FR 75/10
(01/15/10)
Fair Credit Reporting Risk-Based Pricing Regulations - Agency Notice
(12/28/09)
Model Forms—Risk-Based Pricing, Agency Notice (12/28/09)
Fair Credit Reporting Risk-Based Pricing Regulations: Correction, FR 73/104
(05/29/08)
Fair Credit Reporting Risk-Based Pricing Regulations, Proposed Rule, FR
73/97 (05/19/08)
Submit your questions …
Do you have a regulatory compliance issue that you’d like to see addressed in the
Regulatory Compliance Outlook Column? If so, e-mail your issue or concern to
Jonathan Foxx at [email protected].
Jonathan Foxx, former chief compliance officer for two of the country’s top
publicly-traded residential mortgage loan originators, is the president and
managing director of Lenders Compliance Group, a mortgage risk management firm devoted to providing regulatory compliance advice and counsel to
the mortgage industry. He may be contacted at (516) 442-3456 or by e-mail
at [email protected].
Footnotes
32
5) Credit score not available: a creditor is not required to provide a risk-based
pricing notice to a consumer17 if the creditor:
I. Regularly obtains credit scores from a consumer reporting agency and provides
credit score disclosures to consumers in accordance with the final rule, but a credit score is not available from the consumer reporting agency from which the creditor regularly obtains credit scores for a consumer to whom the creditor grants,
extends, or provides credit;
II. Does not obtain a credit score from another consumer reporting agency in connection with granting, extending, or providing credit to the consumer; and
III. Provides to the consumer a notice that contains the following:
A statement that a consumer report (or credit report) includes information
about the consumer’s credit history and the type of information included in
that history;
A statement that a credit score is a number that takes into account information in a consumer report and that a credit score can change over time
in response to changes in the consumer’s credit history;
A statement that credit scores are important because consumers with higher credit scores generally obtain more favorable credit terms;
A statement that not having a credit score can affect whether the consumer
can obtain credit and what the cost of that credit will be;
A statement that a credit score about the consumer was not available from
a consumer reporting agency, which must be identified by name, generally due to insufficient information regarding the consumer’s credit history;
A statement that the consumer is encouraged to verify the accuracy of the
information contained in the consumer report and has the right to dispute
any inaccurate information in the consumer report;
A statement that federal law gives the consumer the right to obtain copies
of his or her consumer reports directly from the consumer reporting agencies, including a free consumer report from each of the nationwide consumer reporting agencies once during any 12-month period;
The contact information for the centralized source from which consumers
may obtain their free annual consumer reports; and
A statement directing consumers to the web sites of the Board and Federal
Trade Commission to obtain more information about consumer reports.
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203(k) Rehab Loan Program: Foreclosures Present Challenges, Opportunity
NMLS an d St
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ofessionals
Got an opinion? Want to share your
thoughts on the industry?
Become a NationalMortgageProfessional.com Blogger!
It's free and easy. Just head on over to NMPMag.com, register and
follow the link in the upper right hand side of the page to
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1—This outline is based on information provided in “Fair Credit Reporting RiskBased Pricing Regulations,” Federal Register, 75/10, 01/15/2010, Rules and
Regulations, pp. 2724-2784. The FTC is placing the final regulations and guidelines in the part of its regulations implementing the FCRA, specifically 16 CFR Part
640. This is the source document used herein for citations.
2—See 12 CFR 226.17(c) and 226.18(e).
3—Op. cit. 1, p. 2753.
4—That is, one or more credit products with similar features that are designed
for similar purposes.
5—The credit score proxy method must be used to recalculate the cutoff score(s)
no less than every two years, by considering the credit scores of all or a representative sample of the consumers to whom it has granted, extended, or provided
credit for a specific type of credit product, or within one year after using a cutoff
score derived from market research, third-party data, or information from a party
which it acquired, with which it merged, or from which it acquired the portfolio.
6—Op. Cit. 1, p 2754. Actual example is in the Federal Register.
7—Idem, Actual example is in the Federal Register.
8—RBP Disclosures are provided before the first transaction is made under the
HELOC plan, but not earlier than the time the creditor communicates to the borrower its approval decision.
9—Op. Cit. 1, Part 698-Model Forms and Disclosures, Appendix B(3), p 2776. Any
rearrangement or modification of the language of the model forms “may not be
so extensive as to materially affect the substance, clarity, comprehensibility, or
meaningful sequence of the forms.”
10—Pursuant to § 640.3(a) or (c).
11—‘‘Specific material terms’’ means a single material term, or set of material
terms, such as an annual percentage rate of 10 percent, and not a range of alternatives, such as an annual percentage rate that may be eight percent, 10 percent,
or 12 percent, or between eight percent and 12 percent.
12—Pursuant to § 640.3(a), (c), or (d).
13—FCRA § 615. Requirements on users of consumer reports (15 U.S.C. § 1681m),
(a) Duties of users taking adverse actions on the basis of information contained in
consumer reports.
16—FCRA § 609. Disclosures to consumers (15 U.S.C. § 1681g), (g) Disclosure of
Credit Scores by Certain Mortgage Lenders.
new to market
Depending on each user’s RiskBased Pricing policy, they can select
any of the five pre-formatted letters
available. Letters automatically populate with information specific to the
type of notice and transaction. For
transactions with more than one applicant, multiple applicant-specific letters
are generated, as required by the regulations.
For users who access Kroll Factual
Data’s services directly through the
internet, pre-formatted notices are
available directly from each credit
report. For those who access services
via a system integration, three options
are available, depending on the system, including: notices appended to
the credit report; inclusion of customer score rank, score model percentile data and the disclosure as a
Portable Document Format (PDF); or
as a Hypertext Markup Language
(HTML).
The optional mail fulfillment service relieves clients’ operational staff
of the burden of printing and mailing
letters to applicants. Monthly management reports included with this
service provide standardized, ongoing documentation to easily demonstrate compliance in response to an
audit.
For more information, visit www.krollfactualdata.com.
New HUD Web Site
Provides In-Depth
Economic and Housing
Market Data
Headlines and breaking news from
NationalMortgageProfessional.com.
Headlines and blogs from
around the web.
JANUARY 2011
33
”Market at a Glance” reports contain
economic and housing market data
trends for every metropolitan area
and county nationwide with
employment data updated on a
monthly basis. Employment data is
provided from the Bureau of Labor
Statistics and housing data is
derived from the Census Bureau’s
American Community Survey. Some
adjustments are made by HUD field
economists based on regional information. The data are expected to be
released on monthly basis for most
of the metropolitan areas and counties. Eventually these reports will
become “live” documents enabling
field economists to include analysis
as they complete more in-depth
research for specific areas and monitor local conditions.
“Regional Housing Market Profiles”
are based on the quarterly U.S.
Housing Market Conditions report
and include non-farm employment, population changes, and
building activity. These regional
profiles also focus on the most
recent housing rental and sales
activity for the past two years. In
addition, approximately 10-12 individual metropolitan areas are
specifically profiled each quarter to
provide these same data down to
the metro area level.
“Regional Narratives” are broad
overviews of economic and housing
market trends within ten regions of
the U.S. These narratives are based
on information obtained by HUD
economists from state and local
governments, from housing industry
sources, and from their ongoing
investigations of housing market
conditions.
“Comprehensive Housing Market
Analysis:” Periodically, HUD field
economists focus on particular metropolitan housing markets to produce counts and estimates of
employment, population, households, and housing inventory. Each
housing market analysis considers
changes in the economic, demographic, and housing inventory
characteristics during three periods:
from 1990 to 2000; from 2000 to the
as-of date of the analysis; and from
the as-of date to up to up three
years in the future.
For
more
information,
visit
hud.gov/datamap.
NationalMortgageProfessional.com The U.S. Department
of Housing & Urban
Development (HUD) has
unveiled a new Web site
that consolidates a
wide variety of economic and housing market data at the
regional, state, metropolitan area and
county levels. Using data from the U.S.
Census Bureau, U.S. Department of
Labor Department, state and local governments, housing industry sources, as
well as HUD’s own field economists,
the new site, hud.gov/datamap,
employs interactive maps that allow
visitors to access a variety of reports—
from a region-wide look at employment and housing activity to individual
county-level figures on population
trends, rental activity and vacancy
rates.
“This is a powerful new tool that’s
easy to use and offers the public a
remarkable look at their local economic and housing markets,” said Dr.
Raphael Bostic, HUD’s Assistant
Secretary for Policy Development and
Research. “Current and reliable data
shouldn’t be hard to come by. This is
precisely why this site will be so helpful
to state and local leaders, developers,
the real estate industry, and the general public who need the latest available
data on their markets.”
HUD’s new site displays an interactive map of the U.S. allowing visitors an
intuitive way to seek data in a number
of areas of geography—from an entire
region down to a particular county. In
particular, the portal offers the following reports:
new to market
managing in the
brave new world
of mortgage finance
attend the
28th Annual Regional Conference of
Mortgage Bankers Associations
March 15 - 17, 2011
Trump Taj Mahal Casino Resort, Atlantic City, NJ
For The First Time: The Residential Program Will Include A
Commercial Track So That Attendees Will Have A Choice As
To Which Sessions To Attend. Both Cocktail Receptions And
The Exhibit Hall Will Be For Both Residential And Commercial
Programs.
Tuesday
Opening Residential Networking Cocktail Reception
in the Exhibit Hall
Wednesday
General Session Topics
The Future of the Securitization Market, Risk Retention,
TBA Market, Reforming the GSE’s, Government
Guarantees & More
MBA’s Report on Current Legislative/Regulatory Issues
Banks in the Mortgage Market
How to Use Social Networking:
Facebook, Twitter, LO Websites, Blogs
34
Exhibit Hall with Lunch
Afternoon Session Topics
LO & Broker Compensation
Labor Law Issues (LO Overtime, Department Of Labor
Opinion, Minimum Wage)
Mortgage Bankers & Financial Institutions Panel:
Independent Mortgage Bankers
Mortgage Brokers
(FHA Business, Use Of Compare Ratio’s, Etc.)
Regulators Roundtable
Regulators from NJ, PA & NY
Mortgage Fraud Panel:
How To Detect And Avoid Mortgage Fraud
Networking Cocktail Reception
Thursday
Critical Issues Day
An in Depth Look at Financial Regulatory Reform
LO Compensation
Risk Retention
Ability To Repay
CFPB Regulations
Fed Reserve Rules
SAFE Act And Related Issues
MI’s: Future Of The Private MI Industry
Residential Mortgage Lending For Financial Institutions
Subsidiary vs. Division
Registration Of LO’s
Obtaining HUD Approval
Investor Approvals
Underwriting
A View From The Regulators:
OCC, FDIC, State Reg
For Registration Information
visit www.mbanj.com
Mortgage Contracting
Services Launches New
Photo Inspection Feature
Mortgage Contracting
Services LLC (MCS), a
provider of property
preservation, inspections and real estateowned (REO) property maintenance to
the financial services industry, has
announced that it now provides photo
inspection services to supplement the
traditional data required for valuations, proof of property condition and
other verification reporting.
MCS’ photo inspection capabilities
add value to several industry practices,
including appraisals for valuation
providers, substantiation of policies for
insurance companies, confirmation of
a property’s existence and condition, as
well as fulfillment of re-certification or
due diligence requirements for origination and servicing shops.
These parties have historically relied
on local field contractors to provide
necessary photo documentation, but
have been challenged with securing
coverage in all areas, especially for
minimal cost and quick turnaround.
MCS is positioned to alleviate those
concerns as it maintains a nationwide
network of inspection subcontractors
to improve workflow processes and
provide clients with cost savings.
“MCS strives to be proactive in providing solutions to the needs of its
clients. Photo evidence of a property
and its condition is a critical validation
measure to support written documentation and provide depth to any form
of reporting,” said Caroline Reaves,
chief executive officer of MCS.
For
more
information,
visit
www.mcs360.com.
CoreLogic Introduces
Fraud Management
Platform
CoreLogic, a provider
of consumer, financial
and property information and business
services, introduced
the next generation of
LoanSafe Fraud Manager, a customizable platform that builds upon the
CoreLogic LoanSafe Fraud Manager and
empowers lenders with more access,
speed and control over their fraud
management systems. LoanSafe Fraud
Manager leverages patented pattern
recognition technology and offers comprehensive business intelligence and
decision-making by harmonizing data,
analytics, policy, strategy and operational workflow. This Web-based platform makes mortgage fraud prevention
easily adaptable by fraud managers by
minimizing reliance on information
technology departments to address the
everyday needs of fraud prevention
teams.
“CoreLogic is again raising the bar on
fraud by giving lenders the power to
adapt their strategies and policies to
respond within minutes as new fraud
schemes appear,” said Tim Grace, senior vice president, Fraud Analytics, at
CoreLogic. “New and sophisticated
mortgage fraud schemes can emerge
overnight. We want to empower
lenders to be able to stop those
schemes through their own flash fraud
rules and alerts. With next generation
LoanSafe Fraud Manager, lenders can
change their rules, add an alert or
change a workflow within minutes of
finding a new fraud trend.”
Once lenders have identified the
population of loans that most need
attention, LoanSafe Fraud Manager prioritizes and determines the optimal
action steps needed for each. The fraud
manager’s ability to create strategies
that combine scores and alerts along
with action steps for the analyst that
are specific to each lender’s best practices helps ensure that the optimal
group of loans is worked in the best
way in every instance.
Operational workflow is optimized
by ensuring fraud prevention is
repeatable and reproducible every
time, as directed by the system and
the lender-supplied best practices.
An interactive workspace presents
loan, borrower and collateral information within an easy to use browser-based interface. This workspace
includes clickable, drill down information on all relevant fields (e.g.,
Social Security number, address,
phone, etc.) and gives access to a customizable menu of third-party tools
(e.g., maps, verifications, reverse
lookups, etc). Next generation
LoanSafe Manager includes userfriendly screens that summarize integrated loan risks, integrated risk
action and disposition details.
LoanSafe Fraud Manager offers flexible integration with internal and external systems while minimizing IT involvement. A white paper on “The Next
Generation of Fraud Management” provides more detail on limitations of current fraud prevention technologies and
how lenders can now be in control of
their fraud prevention management system. For additional information, please
visit www.corelogic.com/nextgenfraud.
For more information, visit www.corelogic.com.
Hartford National Title
Launches Free GFE and
HUD-1 Calculator
Hartford National Title Inc., a provider
of title insurance and real estate closing services, has announced the launch
of OneSourceQuote, its new Good Faith
Estimate (GFE) and HUD-1 title calcula-
Equator Releases Invoice
Solution for Mortgage
Servicers
Equator, a provider
of default servicing
solutions, has
announced the launch of its EQ Invoice
Module for the servicing industry. Using a
rules-based approach, the system simplifies the invoicing process and expedites reimbursements. Servicers can
easily configure different rules per portfolio and communicate with agents and
vendors online to streamline the
approval process.
Equator’s Invoice Module has an
intuitive workflow that instructs users
on which actions to take and when to
fulfill each task. Automated workflow
decisions are based on client configurable factors such as duplication, frequency and dollar amounts of claims,
enabling custom rule sets to be established for each portfolio. Pre-determined value thresholds and automated
decisioning result in quicker reimbursements for invoices complying with these
specific terms. Additionally, the solution rapidly identifies invoices that
should be rejected and addressed on an
individual basis.
“The Equator platform has allowed
agents and vendors to submit expenses for years,” said Chris Saitta, Equator
chief executive officer. “Now, rather
than pass expenses to other systems,
they can easily be reviewed and
approved right in Equator. This
streamlines approvals and makes the
expense data readily available for
strategy decisions.”
The EQ Invoice Module is available
for all existing Equator clients as well
as companies that have yet to leverage
Equator’s solutions. Users benefit from
a full investor-based rules engine and
a complete end-to-end paper trail providing them with unprecedented audit
control. They can also set autoapproval thresholds for the system to
immediately approve invoices that fall
within the specified parameters, saving
Becoming a GSF Pro-Branch
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Become part of GSF Mortgage’s
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GSF offers total support:
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35
NationalMortgageProfessional.com JANUARY 2011
tor. This free online application is
the byproduct of many months’
worth of developmental efforts and
testing by programmers, staff, and
beta clients. OneSourceQuote provides users with the reissue rate calculation on refinances and exact
recording fees through an integration with a national recording database that is updated daily. These
two features ensure that lenders and
mortgage brokers using the calculator will not be “over-disclosing” by
providing a borrower with higherthan-actual settlement charges on
the GFE.
OneSourceQuote was developed
due to the lack of free, accurate title
calculators available to mortgage brokers and retail lenders. With increased
disclosure standards required by the
changes to the Real Estate Settlement
Procedures Act (RESPA), which were
implemented in January 2010, it is
now more critical than ever for mortgage brokers and lenders to accurately estimate the closing costs and fees
for all real estate transactions.
“With the onset of the new GFE we
realized that there was a real need for
an accurate title calculator for the
mortgage broker and lender communities,” said Beth Grassette, in-house
counsel for Hartford National Title.
“The complexity of the closing cost
estimation process, especially when
conducting business in multiple
states, is such that even small errors
could cost an originator thousands of
dollars as well as credibility in the
marketplace. We conducted extensive
research on existing calculators, but
did not find one that we considered a
viable solution. Therefore, we built
our own Good Faith Estimate (GFE)
and HUD-1 title calculator that we feel
best satisfies the requirements of
RESPA and mitigates risk for mortgage
originators.”
Hartford National Title guarantees
its online application to be accurate,
and will bear the financial responsibility for any errors in calculations when
the Company is being used to close and
insure the transaction. Hartford
National Title’s calculator utilizes integration
with
Ernst
Publishing
Company’s Real Estate Recording
Calculator, which is considered the gold
standard for recording fee calculations.
Hartford National Title’s calculator will
estimate all state, city, and county
recording fees and taxes, transfer taxes
and stamps, title services, and title
insurance costs and will automatically
update in the event a municipality
changes its recording fees or other
costs.
Other important features of the calculator include: One-click ordering for
title services, documentation and
recording notes that provide all necessary legal requirements, and a PDF
output that provides the quote in
both a GFE and HUD-1 format for use
by originators.
For more information, visit www.hartfordtitle.com.
new to market
time and money. Agents and vendors can
easily submit and track invoices, ultimately resulting in faster approvals and
payments.
For more information, visit www.equator.com.
MDA DataQuick Updates
Its PropertyFinder 2G
Research Tool
MDA DataQuick, a
division of MDA
Lending Solutions,
has updated its PropertyFinder 2G, the
company’s flagship property and ownership research tool. MDA DataQuick
PropertyFinder 2G gives real estate
professionals and title companies
access to a nationwide database of
detailed property and ownership
information, which includes property
profiles, sales comparables, demographic information and property history. To support the increase in distressed properties on the market,
PropertyFinder 2G now offers expand-
ed property history details on distressed sales transactions. Users can
more accurately track activities, such
as notice of default, notice of trustee
sale, or short sale as well as the transaction that led to the activity.
“In today’s economy and housing
market, the number of properties in
some stage of default is at historical
highs,” said John Walsh, president of
MDA DataQuick. “Whether the property is REO or in default, real estate professionals and title companies need a
clear understanding of the property
history. With PropertyFinder2G, users
identify distressed properties and
make quicker, more accurate decisions, while providing their clients
Call FURST Conferencing
solutions for Mortgage Companies
CallFURST Audio Conferencing enables your mortgage company to communicate
immediately. We have a versatile suite of products that can support meetings of any size. We
offer Reservationless Audio Conferencing, Operator Assisted and Event conferencing all with
24 x 7 x 365 live help available.
36
How mortgage companies are using CallFURST Audio Conferencing
I Branch manager meetings
I Sales training and coaching
I Addressing problems with active loans in the pipeline
CallFURST Web Conferencing can be used to conduct live meetings, perform training,
provide remote help or give presentations via the Internet. In a web conference, each
participant sits at his or her own computer and is connected to other participants via the
internet. CallFURST live help is available 24 x 7 x 365.
How mortgage companies are using CallFURST Web Conferencing
I Borrower presentations
I First time homebuyer webinars
I Software and systems training for employees
We offer:
CallFURST Video Conferencing supports features such as Video Reservations, video
streaming and the latest technology allowing you to connect with end users regardless of
their platform or technology. Video conferencing is key to keeping business connected as
travel budgets tighten and the time we have to get things done is ever-decreasing. Using
Video Conferencing, you can be sure you have access to more personal attention and
training through our team of video experts, the latest in product innovation and proven
service and reliability to ensure your message is successfully communicated.
How mortgage companies are using CallFURST Video Conferencing
I Presentations to large groups
Lowest Pric
I Educational programs for branch offices
e Guarente
I Software and systems training for employees
e
If we can't m
eet or beat y
conferencin
our
g servicing
For more details on how CallFURST Conferencing
p
ri
c
in
g, I will
give you a $
10 Starbuck
s gift card.
helps to improve your company's communications,
contact Joel Furst, Esq., President at
888-9-ITS-YOUR-CALL (888-948-7968)
or at [email protected]
Visit CallFURST.com
Call us at
888-948-7
968
to see how
we can sta
saving for rt
you
with a professional, easy-to-read
report.”
PropertyFinder 2G’s expanded history also adds loan assignment transactions and flags suspicious property
transactions, such as unusually large
changes in price or properties with
multiple sales in less than 30 days.
Instead of personally visiting county
offices, users can search online for
single or multiple properties with a
diverse range of functions, such as
text, document, or Google map
search. Typeahead technology within
PropertyFinder 2G makes search criteria entry quicker.
Real estate professionals manage
their real-time search results in customizable, professional reports and
sales comparables that can include a
cover page, photos, Web links and
notations. Report editing makes
adding and modifying sales comparables, schools, or businesses easier,
and report archive eliminates the
need to reproduce a report. Reports
can be e-mailed, opened as an Adobe
PDF document, or downloaded to
Excel.
For more information, visit www.mdasolutions.com, www.dataquick.com or
www.mindbox.com.
ServiceLink Announces
New Default Solution
Options
ServiceLink, a
provider of
origination
and defaultrelated solutions and technology has
announced its new comprehensive
default solution. This solution empowers servicers to bridge their current
technology to ServiceLink’s optimized loss mitigation and default
technology and outsourcing services.
ServiceLink is well-prepared to manage to the quickly shifting regulatory
guidelines, quality control, and
audit requirements around workout
options from HAMP processing
through foreclosure.
ServiceLink’s wrap-around technology solutions, combined with proven
loss mitigation and disposition processes, allows them to assist servicers
throughout the entire default process.
Their Commerce Velocity technology
aggregates all pertinent information,
analyzes the data based on the customized rules, and provides the optimal workout decision from the point
of default. This technology also provides business users the ability to
manage workflow changes, regulatory
rule changes and other product
changes instantaneously. Combined
with customized outsourcing components including HAMP processing,
loan modifications, short sale, and
deed in lieu, ServiceLink can provide
capacity on a continual or as-needed
basis, acting as an extension of the
servicer’s organization.
“The goal of our complete default
solution is to help servicers and
investors make the optimal workout
decision while maximizing asset value
and remaining in compliance,” said
Jeff Coury, president and chief executive officer of ServiceLink. “Our
Commerce Velocity technology, along
with our proven products and services, eliminates the need for manual
tracking and auditing or reporting in
disparate systems. All loan workout
rules, programs and processes are
maintained through a single wraparound application.”
For more information, visit www.servicelinkfnf.com.
vides sales managers strategies in business planning, recruiting and retention
of loan officers, coaching skills and sales
force management tactics. In addition
to these programs, XINNIX provides
clients with a host of training services
on a monthly basis for loan officers and
managers.
For
more
information,
visit
www.xinnix.com.
GCC Servicing Systems
Launches Electronic
Payment Assistance Module
GCC Servicing Systems,
XINNIX Offers Comprehensive
a provider of mortgage
servicing technology
Complete Loan Application
and solutions, has announced the addition
Online Class
important for mortgage loan servicers
to be prepared to handle electronic
payments,” said Glenn Liebowitz, president of GCC. “The Unapplied Payment
Tracking Module was created to help
our clients manage electronic payments
that present processing issues. Errors
typically occur with electronic payment
such as from a Lock Box and our clients
need to cut down on the time payments
sit in limbo waiting to be cashed and
applied. The UPT Module helps streamline these payments and assists users in
quickly deciding how the payment
should be processed, thus saving our
clients time and money.”
37
Complete Mortgage Solutions
Introduces Our
REVERSE MORTGAGE
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“Work for yourself, not by yourself”
JANUARY 2011
Equal Housing Lender. © 2010 Nationwide Equities Corporation. Trade/service marks are the property of Hamilton Management Group and/or its subsidiaries.
Some products may not be available in all states. NMLS Company ID:1401, Licensed Mortgage Banker: CT: License# 12304, FL: License# ML0701076, NJ:
License# L046060, NY: License# B500883, PA: License# 22104
• For Licensed Mortgage Brokers in: NY, NJ, CT, PA and FL
• No HUD Approval Required
• 72 Hour Broker Approvals
• Great YSP Pricing
• Will Provide State of the Art Training at Our Location
NationalMortgageProfessional.com XINNIX, a
provider
of interactive online training for mortgage sales
and leadership development programs,
has announced the availability of The
Complete Loan Application class.
This Web-based class ensures loan
officers understand the value of a
complete loan application and
enables lenders to gain more control
of their business.
Having a sound understanding of
the loan underwriting process is
absolutely critical for loan officers
today as a means of ensuring repeat
business. Lending organizations interested in creating an efficient operations
team, while also mitigating errors in
the loan process, have utilized The
Complete Loan Application class as a
means to accomplish these goals. As
evidenced by a Top Five mortgage
lender sending 600 of its loan officers
nationwide through the course, quality
assurance is top of mind for all mortgage executives today.
“By equipping loan officers with the
skills and knowledge of the benefits a
complete loan application brings, we
are also creating a desire to systematically deliver exceptional customer service on the front end,” said Casey
Cunningham, president of XINNIX. “The
Complete Loan Application allows loan
officers to focus on boosting their referrals as well as gaining respect from
their processing teams.”
The Complete Loan Application
underscores the six fundamental steps
that deliver success in the loan process:
proper and effective preparation of the
borrower, completion of the critical
elements of the 1003, thorough reconciliation of all borrower documentation, timely collection of required borrower signatures, communication of
next steps to the borrower and the
organization and preparation of the
loan file for loan submission. Business
growth is nurtured when loan officers
invest the time and effort to accurately
complete the application at the outset.
The Complete Loan Application joins
XINNIX’ existing family of interactive,
online training programs, including
XINNIX EDGE Online, the mortgage
sales workshop that empowers loan
officers to grow their production; and
XINNIX LEADERSHIP Online, which pro-
of its Unapplied Payment Tracking
Module (UPT) to its Professional Services
Suite in order to assist mortgage
bankers and servicers with the processing of electronic payments. The UPT
Module enables servicers to quickly and
accurately handle electronic payment
errors. Through a workflow system, the
payment errors are routed to the designated departments and employees for
correction. The UPT Module is customizable for each company’s payment
rules and can also be used to track
errors that come from online bill payment programs, as well as rejected
manual payments.
“As consumers continue to move
their financial management online, it is
new to market
Whether you’re actively searching for a new job or not, don’t miss
what could be your next career opportunity. Post your anonymous
resume now to start building a better career in the mortgage industry.
Search the vast number of career possibilities available in the origination, settlement, secondary & servicing areas of the Mortgage Business or create a personal
job alert to be notified of new jobs that match your search criteria.
Be available for your next career opportunity. Post your
resume at FindMortgageJobs.com where employers search for mortgage professionals.
Post your resume. Find a job.
Be happy.
38
www.bayeq.com
The Unapplied Payment Tracking
Module is the newest of GCC’s standalone modules that also include
Collateral Tracking and Final Docs. The
stand-alone modules are cost-effective
ways for servicers to integrate useful
technology into their existing processing systems.
GCC’s G/SERV is a comprehensive
platform that automates all functions
of loan servicing, including loan setup, cash management, escrow and
insurance administration, investor
reporting and accounting, default
management and federal and state
reporting.
For more information, visit www.gccservicing.com.
Visionary Apps Releases
Complete Realty Suite 2.0
Smart Phone Apps
Visionary Apps LLC, creators of innovative
smart phone tools that
aim to improve people’s
lives, has announced the third release
of its suite of real estate-related
smart phone applications (apps),
called the Complete Realty Suite 2.0.
User features have been added and
the apps now run with increased
speed, stability and functionality.
With millions of listings nationwide
per app, Complete Realty Suite apps
have revolutionized the way that
people conduct their home buying
searches, and the way real estate professionals connect with and assist
potential homebuyers.
Free to consumers, the suite
includes three separate applications for
download: Complete Foreclosures,
Complete Homes and Complete
Rentals. Within the first week of
release, Complete Realty Suites apps
rose to the top 10 most downloaded
Business Apps in the iTunes App Store.
The suite was released for the iPhone,
iPad and iPod Touch, and has revolutionized the way that people conduct
their home search, and the way real
estate and management professionals
connect with and assist potential
homebuyers/renters.
“Complete Realty Suite 2.0 brings
detailed information on new foreclosures to the palm of your hand more
efficiently and effectively,” said Dan
Burrus, technology forecaster, business strategist and founder of
Visionary Apps. “We’ve worked with
top technology experts to redefine
our apps to better suit the needs of
the users.”
The new features of Completely
Realty Suite 2.0 include: A new interactive map that updates listings in
real-time as users pan and zoom; a
customizable search criteria function
that allows users to only see the properties that match their needs; a
revamped sort feature that ensures
users see the listings that best match
their criteria first; and new high-resolution images and icons for the
iPhone 4.
For more information, visit www.visionaryapps.com.
Berkadia to Expand
Products Offerings With
Addition of CMBS Loans
Berkadia
Commercial
Mortgage has
announced the
expansion of its commercial real estate
financing options offered through its
nationwide mortgage banking network
with the addition of a new product—
fixed-rate loans for inclusion in the new
generation of commercial mortgagebacked securities (CMBS). The new
product, expected to be available at the
beginning of 2011, will give Berkadia’s
clients superior access to capital as they
continue to benefit from mortgage
banking expertise and service.
Senior Vice President Joseph
Franzetti will manage the fixed-rate
loan origination program. Franzetti,
formerly with Cohen Financial,
joined Berkadia earlier this year to
establish and manage the company’s
relationships with capital markets
lenders.
“Berkadia’s fixed-rate loan program
is unique in the market,” said
Franzetti. “We are in discussions with
potential capital markets partners,
and Berkadia is poised to be the only
mortgage banking firm providing proprietary capital for CMBS loans. This
gives our clients the best of both
worlds—access to the capital markets
delivered by local mortgage bankers.”
An additional option under development is a short-term floating-rate
loan program to provide interim
financing to select multifamily borrowers with pending Fannie Mae or
Freddie Mac executions. The bridge
loan program will be managed by
Berkadia’s Agency Lending Group
under the leadership of Executive
Vice President John Cannon.
“These programs are positive developments for our clients,” said Cannon.
“Following more than two years characterized by extremely limited financing
options, Berkadia is pleased to provide
additional choices.”
For
more
information,
visit
www.berkadia.com.
Wipro Announces
Enhancements to
NetOxygen Cloud LOS
Wipro Gallagher
Solutions (WGS)
has announced that
it has updated its
NetOxygen SaaS loan origination system
(LOS) to remain in full compliance with
the latest industry regulations. The
new channels, giving us a huge competitive edge.”
For more information, visit www.planetre.com.
Your turn
invites you to submit any information
promoting new “niche” loan programs,
new products or any other announcement related to the introduction of a new
program, to the attention of:
New to Market column
Phone #: (516) 409-5555
E-mail: [email protected]
Note: Submissions sent via e-mail are preferred. The deadline for submissions is the
1st of the month prior to the target issue.
Ahh yes…
the broker
approval desk.
39
At Comergence, helping lenders holistically manage relationships with their
mortgage broker clients is the most important thing we do. And with FHA
now holding lenders accountable and responsible for approving brokers,
there’s no better time than the present to have us show you how we can
help with this important change to your business.
For more information and to schedule an appointment, call 714.740.9000
or visit us at www.ComergenceCompliance.com
Comergence is preferred by leading lenders nationwide.
©2011 Comergence Compliance Monitoring, LLC. All rights reserved.
Gets you all warm and fuzzy just thinking about having to
approve and reapprove your brokers, now doesn’t it?
JANUARY 2011
planetRE, a technology provider for
online real estate, has announced
planetRE CM, one of the industry’s first
interactive unified client communication management platforms. The
new SaaS platform consists of
planetRE RealFace—an agent-branded Facebook property search engine;
a next generation CRM integrating
leading
social
networks
like
Facebook, Twitter and LinkedIn, and
others with predictive modeling and
analytics. According to the company,
“Social media has forced its way
into the world of marketing, and it’s
here to stay,” said Subrao Shenoy,
chief executive officer of planetRE.
“planetRE CM opens up the idea to
salespeople that relationships with
clients are developed across multiple
platforms through multiple channels. Having an agent branded property search page in Facebook gives
great exposure to agent listing and
services.”
“We are a strong believer in social
media revolution,” said Chatty
Arrieta, chief operating officer of
Partners Trust, a real estate brokerage
firm in Brentwood, Calif. “planetRE
CM allows our company the ability to
manage high end clients with these
planetRE Launches
Integrated CRM and
Social Media Platform
CRM is still a one-dimensional tool,
featuring e-mail for direct agentclient relationship management.
CRM should include new network
channels made possible through the
proliferation of social networking
with high consumer engagement.
planetRE CM provides agents and brokers with multi-channel campaigns with
prospects via e-mail, Facebook, Twitter
and instant messaging. Combining powerful backend predictive analytics, it lets
the user determine which campaigns
provide better return on investment
(ROI). CM has provisions for single sign
on with multiple user-defined external
apps like Google Calendar allowing for
the first-time single calendaring and task
management.
NationalMortgageProfessional.com LOS has been upgraded to fully comply
with the latest regulations, including
the U.S. Department of Housing &
Urban Development’s (HUD) Real
Estate Settlement Procedures Act
(RESPA), Upfront Mortgage Insurance
Premium (UFMIP) for Federal Housing
Administration (FHA) loans, Regulation
Z changes for higher priced loans and
the Federal Reserve Board’s Mortgage
Disclosure Improvement ACT (MDIA).
In addition, WGS incorporates new
workflow management features for
retail and broker lending channels.
These are in addition to workflow tools
already in place to support the entire
origination life cycle. Furthermore,
new interfaces to Fannie Mae’s
Desktop Originator and to Interthinx’s
FraudGUARD were integrated.
WGS also made updates to its loan
modification application available
through the NetOxygen platform,
which guides lenders through every
step of the Home Affordable
Modification Program’s (HAMP) loan
modification process including prequalification, initial borrower contact,
eligibility, underwriting, the trial period and the official modification. The
loan modification application now
includes portfolio analytics, automated
waterfall and NPV calculations and
extensive pipeline management and
workflow management.
“We developed many of NetOxygen’s
new features as part of our response to
lenders’ requests for an LOS that further boosts efficiencies in order to maximize profitability,” said Anil Raibagi,
business head for WGS. “We constantly
look to improve our functionality to
simplify the loan origination process
for users.”
NetOxygen incorporates a multi-tenant platform where the company’s
solutions can run on a single server,
serving multiple customers while keeping proprietary data separate. This
offers significant cost savings to users
and enables each customer to work
with a customized virtual application
instance while ensuring each customer’s loan data is isolated and protected from other users.
For more information, visit www.gogallagher.com.
Appraisal Management
Company
Coester Appraisal Group
7650 Standish Place, Suite 107 • Rockville, MD 20855
www.coesterappraisals.com
(888) 485-1999 Ext. 2
We are a premier National Appraisal Company since 1970.
We have a complete product line for your entire organization.
We guarantee HVCC and FHA regulatory compliance.
Let our experience work for you. The way valuations should be.
Branch Manager
Closing Gifts
Guaranteed Home Mortgage Company, Inc.
108 Corporate Park Drive, Ste 301
White Plains, NY 10604
888-329-GHMC • www.joinguaranteed.com
Cruise4Two-Loan Incentives
1-866-541-8077
www.Cruise4Two.com
Find out what Guaranteed can do for you.
Branch Program for Professionals. It's what we do.
Increase your Loans,Get the Edge & Generate More Referrals!
Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,
the Bahamas or the Western Caribbean (up to a $1798.00 value) only
when they close a loan with you. Only $159.00 per certificate!!
Compliance Consultants
StreetLinks National Appraisal Services
(800) 778-4788
www.StreetLinks.com
[email protected]
There’s only one avenue to guaranteed appraisal performance!
With a commitment to doing business the RIGHT way, StreetLinks
is bringing real value as a PARTNER, not a vendor.
40
• We attract and retain the best appraisers – Our appraisers set
their own fees and our peer-to-peer approach attracts appraisers
that simply won’t work for other AMCs
• IQ Select™ proprietary order assignment methodology assigns
based on proximity, service and quality – not lowest fee!
• 100% Manual Quality Control – every report is manually
pre-underwritten by a USPAP certified appraisal underwriter
• Certified compliance with appraiser independence requirements
AND INTRODUCING SCORe™ - a revolutionary approach to
appraisal validation. Credible 2nd opinions on comp selection
from licensed, local appraisers. Stop Guessing. Start Knowing!
Inlanta Mortgage
W229 N1433 Westwood Drive, Suite 103
Waukesha, WI 53186
www.inlanta.com • 262-513-9853
Established in 1993 and headquartered in Waukesha, Wisconsin,
Inlanta Mortgage is a multi-state mortgage banking company committed to delivering superior service to our branch clients.
For more information, call 262-513-9853 or visit www.inlanta.com.
LENDERS COMPLIANCE GROUP
167 West Hudson Street - Suite 200
Long Beach | NY | 11561 | (516) 442-3456
www.LendersComplianceGroup.com
The first full-service, mortgage risk management firm
in the country, specializing exclusively in mortgage compliance.
iServe Residential Lending
www.iservelending.com
[email protected]
415-298-2500
iServe offers a complete product mix - aggressively priced, with
hassle-free service & turntimes. Branching & Loan Officer
opportunities available nationwide. For a change, focus on
production, quick closes & a good night's sleep!
United Northern Mortgage Bankers......888-600-8808
Branch Manager
Limited room available for established Team Leaders and
Licensed Mortgage Originators. Become part of an established
30-year Mortgage Banker with a proven track record and success.
Pioneers in outsourcing solutions for mortgage compliance.
Our Compliance Team Will:
Leverage your existing employees.
Improve your productivity.
Collaborate on projects.
Make the most of your current technology.
Bring innovation to your company.
Be a strong cultural fit.
Free you to focus on your core competencies.
Give you access to world-class expertise.
Lower your total operational costs.
Brokers United ........................................877-710-0948
Consulting & Branch opportunities. Exclusive opportunities with a
top Federally Chartered Bank, Mortgage Banker and/or Mortgage
Banker/Broker Platform. Email Jeff Flees at [email protected].
Contact Management/CRM
Branch Recruitment
RealEstateBestJobs.com ....................201-489-0256
Freedom Mortgage Corporation
www.fmbranch.com
[email protected]
800.220.9498
Currently working with various bankers & federally chartered banks.
Seeking established, new branches & Loan Officers Nationally. We
are a top recruiting firm handling all types of mtg positions.
WorkCenter CRM ....................................877.498.6888
A CRM & contact management solution designed for mortgage
professionals. Automated campaigns & LOS synchronization make
WorkCenter an intuitive timesaver for staying in touch with clients.
Continuing Education
Freedom Mortgage Corporation, The BEST Branch Solution, Period.
Church Financing
GSF Mortgage
15430 W Capitol Dr. Brookfield, WI 53005
1-877-494-4448
www.gsfprobranch.com
Be in business for yourself, but not by yourself. Join GSF Mortgage's
Professional Branch Network. Enjoy freedom and stability and reap
the rewards. Signing bonus for Branch Managers, retain 100% of
your commissions. Absolutely NO files fees, NO splits
CONCORD CHURCH FINANCE
NATIONWIDE FINANCING FOR CHURCHES
ONLINE [email protected]
800-926-0399 • Fax: 858-756-8108
• Church Purchase & Construction • $100,000 to $2,500,00
• Church Refinance & Cash Out • Churches all 50 states
• 75% of Appraised Value • 20 Yr. Fixed Rate
Abacus Mortgage Training and Education
PO Box 780
Summerfield, NC 27358
888-341-7767 • www.GetYourEd.com
NMLS approved 20 hour Prelicensing Education
NMLS approved Continuing Education
Live Classroom Instruction, Web Delivery and Private Events
The SAFE-Smart ExamCram, Powerfully Innovative Test Prep
Continuing Education
MSS Learning Center
(800) 963-1900
www.MortgageSuccessSource.com
Email: [email protected]
Time is running out...are you ready?
Document Preparation
Mortgage Banking Systems - ProClose
1360 Beverly Rd. Ste 200, McLean, VA 22101
800-783-2283 · [email protected]
www.ProClose.com
ProClose provides compliant closing documents and software for
Residential Mortgage Lending. Created with closers in mind,
we help make a lender’s staff more efficient and supported.
Events
NYC Real Estate Expo LLC
Anthony Kazazis - Director
[email protected] • www.nycrealestateexpo.com
646.210.2545 • 914.763.8008
“The Expo for Real Estate Professionals"
For ongoing Networking Events throughout the year please visit
www.nycnetworkgroup.com.
Pass the S.A.F.E. Act Test, meet your 20 hours of Pre-licensure,
and complete the 8 hours of Continuing Education you need
• The Ultimate Test Prep Kit and Test Prep Boot Camps – Cover
everything to pass the S.A.F.E. Act Test — on your first try.
• 20-hour Pre-licensure - Packed with everything to successfully
complete your pre-licensure requirements.
• Continuing Education - Exciting, NMLS approved courses that
meet your Continuing Education needs and build your business.
Robertson | Anschutz
800-343-7160
[email protected]
www.radocs.com/info.html
Hard Money/Private Lending
Mortgage Loan Closing Document Preparation & Compliance Services
Fulfillment Services Including Pre-Funding Review & Post-Closing
Interfaces with Leading Loan Origination Software Systems
Foreclosure – Loss Mitigation Services
ACC Mortgage, Inc.
932 Hungerford Drive #6 • Rockville, MD 20850
240-314-0399 • 240-314-0336 fax
WeApproveLoans.com
Direct Mail
Best Rate Referrals ............................................800-811-1402
Document Preparation (SaaS)
We are doing traditional subprime lending, fix & flip lending and
hard money lending.
Mortgage marketing company with decades of combined experience providing quality leads, mailers, lists and dialer products.
www.bestratereferrals.com & www.mortgageleads.org
41
Windvest Corporation ............................877-285-0777
Your Complete Mortgage Marketing Solution.
Call Us Today!
(800) 922-9860
www.envisiondirect.net/catalog/mortgage.htm
Mortgage Loan Closing Document Preparation & Compliance Software
Loan Documents and Compliance – Web-based/SaaS – Easy to Use
Intuitive – Secure and Reliable – Integrates with Leading LOS
Free Setup and Support – Extensive Compliance Audits
Education
Doc Management
Errors and Omissions
Insurance
CB Malaga Insurance Services LLC ......877-245-5887
Insurance broker providing errors & omissions (E&O)
insurance to mortgage brokers and bankers. All loan types.
Available in 22 states. www.CBspecialty.com
Advanced Data is a leading national provider of data services,
streamlining income and employment verification with proprietary
software. Clients can submit 4506-T directly through Encompass360.
Also ask about our AVM and flood services!
Platinum Credit Services, Inc.................631-299-2084
Tax return vertification (4506 tax transcript done in less than
24 hours in most cases). Call Lorenzo Pugliano, President
and CEO at 631-299-2084.
Bookmark this!
Access these
listings online at
nmpmag.com/directory_list
JANUARY 2011
DocVelocity is an end-to-end paperless solution designed to simplify the loan origination experience. Imagine having all your documents in the loan process as electronic files, all online, from preapproval to closing. DocVelocity provides: Fast and easy loan
delivery to any lender … Automatic doc sorting, naming and filing
… Real-time online document sharing for anyone you choose …
Friendly and intuitive user interface … No start-up fees, and free
training and support. DocVelocity addresses important compliance issues while giving your office the competitive advantage of
being paperless. It streamlines all aspects of the mortgage
process and most important, it does so in one easy-to-use and
inexpensive package. Its newest version, DocVelocity 2.5, adds
over 50 new features and enhancements to make the best paperless office even better. DocVelocity is the flagship product of
Paperless Office Solutions, Inc., a wholly owned subsidiary of
Flagstar Bancorp. Visit www.docvelocity.com to find out more.
North Lake College - Specialized Education In Mortgage Banking.
Earn An Associates Degree in Mortgage Banking From the First Fully
Accredited Mortgage Banking Degree Program in the U.S. For
Information About Our 30 Year Program email:[email protected].
Advanced Data
(800) 537 - 0458
www.advanceddata.com
[email protected]
DocVelocity
www.docvelocity.com
(877) 362-8356
[email protected]
North Lake College
5001 North MacArthur Blvd, Room T-231-C
Irving, TX 75038
(972) 273-3467 • http://www.northlakecollege.edu/
Income Verification Services
NationalMortgageProfessional.com • Specializing in Official Snap Packs for Greater Open Rates
• Envelope Mailers, Business Reply, Postcards and Much More
• Targeted Mortgage Lists with Many Selects
• Complete Design, Printing and Mailing Services
Docs on Demand
800-343-7160
[email protected]
www.docsondemand.info
Specializing in rehab loans for property investors in So. CA.
Up to 60% ARV, 12.99% fixed rate, 3.5-5 points, 1 yr. term.
Fast & professional service since '94! Visit windvestcorp.com!
Loan Management Systems
Jumbo
Retail Branch
Xetus ....................................................877-GO-XETUS
XetusOne is a powerful, easy-to-use loan management system
that streamlines loan processing. Our affordable SaaS applications
are lenders #1 choice for origination, subordination & modification.
Sign up with the
Premier Jumbo Lender
www.ingloans.com
877.464.0555, option 2
Move your Jumbos to a better neighborhood. ING Mortgage is
your home for Portfolio loans up to $3,000,000. We offer aggressive
pricing and simple guidelines in all 50 states.
Big Loans. Low Rates. Great Value.
Leads
AAA Refi Leads.....AAA Refi Leads.....AAA Refi Leads
Learn how I went from failure to success by mailing cheap refi
letters from home, closed 71 loans & made $248,954.62 last yr.
I’ll show you exactly how I did it. Go to: www.Refi-Leads.NET
42
Internet’s Leading Consumer Mortgage Marketplace
Attracting over 7 million unique
consumers every month
www.Bankrate.com • 561-630-1257
Reach affluent and creditworthy consumers who are in-market and
ready to transact. Bankrate is a consumer direct Web site, NOT a
lead aggregator. Qualified leads for every sized budget, and pay
only for performance. No set up fees! No contracts! No risk!
• Reach self directed, highly qualified consumers that are actively
searching for mortgage loans
• Geo-targeting – reach the right consumers in the right markets
• Our proprietary Advertiser Portal gives you complete control
over your campaigns, budgets, and performance reports.
• YOU determine your daily/weekly/monthly budget
• Pay only for consumers who click on your listing
• NO cancellation fees
Loan Origination Systems
Calyx Software
800-362-2599
[email protected]
www.calyxsoftware.com
Calyx Software, the #1 provider of mortgage solutions is dedicated
to offering reliable and affordable software that streamlines, integrates and optimizes the loan process. Find out how PointCentral
can streamline your business and create compliant processes today.
Mortgage Builder Software
24370 Northwestern Highway, Suite 200
Southfield, MI 48075
800-460-5040 • www.mortgagebuilder.com
End-to-end LOS system for multi-channel lending.
PreQual thru Interim Servicing. Includes all back-office functionality;
Underwriting,Secondary Marketing,Post Closing and much more
SaaS, ASP and Client Server delivery options.
SM
www.mortgageloan.com • 877-390-4750
MortgageLoan.com is the largest online directory
for mortgage professionals and a favorite of
consumers shopping for mortgage loans.
Our network attract over one million visitors per month. Our paid
lead program as well as our free lender directory will help you connect with targeted new consumer traffic from with high-intent consumers searching online for the right mortgage lender.
Are you a broker/owner or current branch manager looking to
expand your business into Mortgage Banking with FHA capabilities?
Then our PARTNER BRANCH ADVANTAGE© program is perfect
for you. We are offering you all the benefits of partnering with an
established lender while still enjoying your independence.
Mortgage Concepts is a nationwide FHA Direct Lender with a 16
year long reputation of excellence.
YOUR SUCCESS IS OUR SUCCESS!
For more information contact THOMAS R. SIRICO, Vice President
of Business Development at (917) 923-1472 or email at
[email protected].
We look forward to sharing our services with you!
Secondary Marketing Consulting
Broker to Banker Services.com ..........(951) 746-3075
We complete your applications for approval
Save the time and hassle
contact: brokertobankerservices.com
Title
Regulatory/Compliance
Try us risk-free! Call 561-630-1257
or visit www.bankrate.com/cpcprogram/ for more details.
MortgageLoan.com
(800) LOANS-15
www.mortgageconcepts.com
Comergence Compliance Monitoring, LLC
630 The City Drive South, Suite 205 • Orange, CA 92868
Office: 714-740-9000
www.ComergenceCompliance.com
Comergence Compliance Monitoring is the mortgage industry’s only
Complete broker desk management software and outsource solution
for TPO management and monitoring. We can supplement lenders inhouse management and monitoring resources departments.
Intracoastal Abstract Co. Inc.................516-358-0505
Privately owned & operated full service title insurance agency
in NY, NJ and FL, with affiliates throughout the US & Canada.
Escrow Agent in Florida.
www.intracoastalabstract.com.
Wholesale/Correspondent
BankFinancial ..........................................800-894-6900
We have money to lend for apartments, $250M to $2MM, up to
75% LTV. We offer competitive rates, fees & terms. We’re committed to helping you and your clients close the deal. Call us.
Loan Incentives
If your ad was here, you would be seen by 191,181 Mortgage
Professionals looking for resources to help them in their business.
Cruise4Two-Loan Incentives
1-866-541-8077
www.Cruise4Two.com
Increase your Loans,Get the Edge & Generate More Referrals!
Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,
the Bahamas or the Western Caribbean (up to a $1798.00 value) only
when they close a loan with you. Only $159.00 per certificate!!
The Resource Registry is a directory of lenders (wholesaler or retail that
are recruiting), affiliated services and resources that is seen
by more than 191,181 active Professionals.
Call 888-409-9770 ext 4. to register your company.
Wholesale/Residential
Wholesale/Residential
Wholesale Reverse Mortgages
NATIONWIDE Equities
Flagstar Wholesale Lending
www.wholesale.flagstar.com
(866) 945-9872
[email protected]
Flagstar Wholesale Lending, a division of Flagstar Bank, is one of
the nation’s largest wholesale and correspondent mortgage
lenders, providing the technology, products, service and support
that independent mortgage brokers, correspondents, and bankers
need in today’s mortgage arena. In the ever-changing environment of mortgage banking, Flagstar takes pride in accommodating the specific needs of each customer. At Flagstar, we understand that you need every available advantage to stay ahead of
the competition. This is why we provide multiple technology
options to meet your needs to register, lock, underwrite, close,
fund and deliver your loans. Our wholesale website
(wholesale.flagstar.com) and the loan processing tool Loantrac
provides our customers with the functionality that make it easier
and faster to close loans, saving you time and money! Visit wholesale.flagstar.com to learn more.
Call 888-409-9770 ext 4.
to register your company.
Terrace Mortgage
4010 W. Boyscout Blvd., Suite 550
Tampa, FL 33607
866-934-4631 • www.terracemortgage.com
We offer competitive pricing and fast turn-times for FHA, VA,
Conventional, and USDA programs without having a retail presence in the industry. We are a wholesale lender with 22 years of
experience and believe in exceptional service.
Coming
in
2011!
Nationwide Equities Corporation
201-529-1401
www.nwecorp.com
For Licensed Mortgage Brokers in NY, NJ, CT, PA and FL
No HUD Approval Required – Live Help Desk
Will Provide Training at Our Office or Yours
48 Hour Underwriting - Get Paid Within 48 Hours of Funding
MORTGAGE
PROFESSIONAL .TV
JANUARY 2011
Sign-on weekly at
nmpmag.com/lykkenonlending
NationalMortgageProfessional.com Lykken on Lending is a weekly 60-minute show hosted by mortgage
veteran of 37 yrs, David Lykken, along with special guest Alice Alvey &
Joe Farr as well as featured special guests. Each week we provide our
listeners with up-to-the-minute information of what is happening in
mortgage and housing industry.
43
NationalMortgageProfessional.com’s
Top Five Articles in 2010
“What are these weird boxes?"
QR Codes, when scanned with a mobile device, these unique bar codes
will open articles in a Web browser with the proper reader software.
Now enjoy the top five viewed stories that appeared on
NationalMortgageProfessional.com in 2010 by scanning the
QR Codes with your mobile device.
44
FHA Commissioner Stevens
clears the air: David H. Stevens
details the new RESPA rule and
the role of the broker and
stabilization in housing
http://goo.gl/vZzR4
The future of the mortgage
broker and correspondent
http://goo.gl/PRHpa
FHA issues guidance for lender
approvals
http://goo.gl/yBqOH
Did HVCC lead to more fraud?
http://goo.gl/nI5mc
The HUD hammer hits hard:
FHA withdrawals FHA approval
status from 905 lenders
http://goo.gl/NKgUE
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 2011
Sunday-Wednesday, February 6-9
Mortgage Bankers Association’s
Commercial Real Estate
Finance/Multifamily Housing Convention
& Expo 2011
Manchester Grand Hyatt San Diego
One Market Place • San Diego, Calif.
For more information, call (800) 7936222 or visit www.mortgagebankers.org.
Wednesday, February 16
Florida Association of Mortgage
Professionals Broward Chapter 2011
Annual Trade Show
The Broward Convention Center
1950 Eisenhower Boulevard
Fort Lauderdale, Fla.
For more information, call (954) 2946360 or visit www.browardfamp.org.
Tuesday-Friday, February 22-25
Mortgage Bankers Association National
Mortgage Servicing Conference & Expo
Gaylord Texan Hotel & Convention Center
1501 Gaylord Trail
Grapevine, Texas
MARCH 2011
Tuesday-Thursday, March 15-17
2011 Regional Conference of Mortgage
Bankers Associations
Trump Taj Mahal
1000 Boardwalk at Virginia Avenue
Atlantic City, N.J.
For more information, call (973) 3797447 or visit www.mbanj.com.
Wednesday, March 16
Maryland Association of Mortgage
Professionals 2011 March Mortgage
Madness
Martin’s Crosswinds
7400 Greenway Center Drive
Greenbelt, Md.
For more information, call (410) 7526262 or visit www.mdmtgpros.org.
Wednesday-Thursday,
March 23-24
National Policy Conference
Hyatt Regency Washington
on Capitol Hill
400 New Jersey Avenue NW
Washington, D.C.
For more information,
call (800) 793-6222 or visit
www.mortgagebankers.org.
Sunday-Wednesday, March 27-30
Mortgage Bankers Association’s National
Technology in Mortgage Banking
Conference & Expo
The Westin Diplomat Resort & Spa
3555 South Ocean Drive
Ft. Lauderdale, Fla.
Sunday-Wednesday, March 27-30
Fraud Issues Conference
The Westin Diplomat Resort & Spa
3555 South Ocean Drive
Ft. Lauderdale, Fla.
MAY 2011
Sunday-Wednesday, May 1-4
Secondary Market Conference & Expo
The New York Marriott Marquis
1535 Broadway • New York, N.Y.
Mortgage Bankers Association’s Loan
Production Conference
The New York Marriott Marquis
1535 Broadway • New York, N.Y.
Commercial/Multifamily Servicing &
Technology Conference
Chicago Marriott Downtown Magnificent Mile
540 North Michigan Avenue • Chicago, Ill.
Mortgage Bankers Association’s Legal
Issues/Regulatory Compliance Conference
Boca Raton Resort
501 El Camino Real • Boca Raton, Fla.
OCTOBER 2011
Sunday-Wednesday, October 9-12
Mortgage Bankers Association’s 98th
Annual Convention & Expo
The Hyatt Regency
151 East Wacker Drive • Chicago, Ill.