radius financial group inc. co-founder, sarah valentini on leadership within the mortgage industry
TRANSCRIPT
PRESORTED STANDARDU.S. POSTAGE PAIDNMP MEDIA CORP.
NMP MEDIA CORP.1220 WANTAGH AVENUEWANTAGH, NEW YORK 11793
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161.800.649.1362 I www.DocMagic.com
N A T I O N A L M O R T
A P R I L 2 0 1 6 l V O L U
A SPECIAL FOCUS ON “LEADERSHIP”The Key to Driving You Mortgage Business Forward … YouBy Chad Jampedro..........................................................................................70
The Fine Art of Achieving Leadership Greatness By Michael Groff ..........72
Experience and Perseverance: The Pillars of a Great LeaderBy Jeffrey Tesch ..............................................................................................73
Challenging the Status Quo By Brad Herbert ..............................................74
Leading With Clarity By Kerry W. Elam ........................................................76
Five Traits of Effective Leaders By Lisa Coleman ......................................77
Like Attracts Like: How Technology Translates Into LeadershipOpportunities for LOs By Jeff Bode..............................................................78
Identifying Extraordinary Leaders By Kerry Wirth ......................................80
How Will You Know When You Find a Leader? By Casey Fleming............82
Follow the Right Leaders to Become One Yourself By Wes Miller............84
Take Me to Your Liter By Eric Weinstein ......................................................86
There Is Always a Better Way to Lead By Elizabeth Morales ....................87
Seven Steps to Building a Championship Sales TeamBy Marc Wayshak............................................................................................88
Built to Lead By Sarah Valentini ....................................................................90
FEATURESSub-Prime: Establishing a New Track Record By Tom Hutchens ..............8
The Elite Performer: Migrate to Millennials By Andy W. Harris, CRMS ......8
Recruiting, Training and Mentoring Corner By Dave Hershman ................10
Industry Updates: April 2016 By Gavin T. Ales ............................................16
Casey Stengel, Ernie Banks, Stan Musial … and Compliance?By Andrew Liput ..............................................................................................18
Agility Resource Group ...................................... www.agilityresourcesgroup.com ......................................87
Angel Oak Mortgage Solutions ............................ www.angeloakms.com ......................................Back Cover
Assurance Financial............................................ www.lendtheway.com ....................................................85
Brokers Compliance Group.................................. www.brokerscompliancegroup.com ................................104
Caliber Home Loans.............................................. www.caliberwholesale.com ..............................................13
CallFurst.com ...................................................... www.callfurst.com ............................................................75
Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................37 & 72
Citadel Servicing Corporation .............................. www.citadelservicing.com ..............................................47
Civic Financial Services/Wedgewood .................... www.civicfs.com ..............................................................9
Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................1
First Guaranty Mortgage Corp. ............................ www.fgmc.com ..............................Inside Front Cover & 78
Flagstar Bank .................................................... www.flagstar.com/ae ......................................................7
Great Northwest Mortgage Expo .......................... wwwgreatnorthwestexpo.com ........................................86
HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................17
Lykken On Lending ............................................ www.lykkenonlending.com ............................................80
MBS Highway .................................................... www.mbshighway.com/MNN ..........................................23
Moneyhouse U.S. .............................................. www.moneyhouseus.com ..............................................71
V I S I T O U R A
Company Web Site Page
40NMP Next: April 2016,Written and Compiled by Rick Grant
48Achieving a TrulySeamless Workflow-Driven Appraisal ProcessBy Vladimir Bien-Aime
54NMP’s VisionaryOrganizations 2016
65Lykken on Leadership: FiveWays to be Prepared forInevitable Failure By David Lykken
96Getting Back to Work (Now That TRID Is Over) By Carl Markman
visionaryorganizations 2016
T G A G E P R O F E S S I O N A L
U M E 8 N U M B E R 4
NAMB Perspective ........................................................................................20
Step Inside Ginnie Mae By Ted W. Tozer ....................................................24
What Frustrated Loan Officers and Supermarkets Have in CommonBy Brian Sacks ................................................................................................28
Get Your Best Results This Summer ..........................................................30
Tales From the Closing Table By Andrew Liput ..........................................32
Take the Lead! By Laura Burke, MBA, MS, MIS, CFE, EA ........................38
Survey Says: Nearly One in Five Originators Still Struggling With TRID ........................................................................................................50
The Commercial Corner By Mike Boggiano ................................................64
The Long & Short: The Business of Short Sales By Pam Marron ..............66
Timeout! Time for Some Coaching to Reach the Next LevelBy Bubba Mills ................................................................................................68
MBA’s Mortgage Action Alliance: A Message From MAA Chairman Fowler Williams ..................................................................91
Operation VA SITREP By Richard M. Bettencourt Jr., CRMS, CMHS..........93
OrigiNation: By Originators, For Originators By Andy W. Harris ................94
New Book Champions the Benefits of Property Taxes By Phil Hall..........94Playing by the Rules By Amy Bergseth ......................................................100
COLUMNSNew to Market..........................................................................................12
News Flash: April 2016 ............................................................................14
Heard on the Street ................................................................................36
Outstanding Places to Work ..................................................................98
NMP Calendar of Events ........................................................................99
NMP Resource Registry ........................................................................102
Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ............................34 & 35
NAMB+ ............................................................ www.nambplus.com ......................................................25
NAPMW ............................................................ www.napmw.org ....................................................74 & 95
NAWRB ............................................................ www.nawrb.com ............................................................31
New York Community Bancorp, Inc. .................... www.nycbmortgage.com ................................................19
NRMLA.............................................................. www.nrmlaonline.org ....................................................92
Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................11, 89 & Inside Back Cover
Radian Guaranty ................................................ www.radian.biz ............................................................79
REMN Wholesale ................................................ www.remnwholesale.com ................................................5
Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................81
Secure Insight.................................................... www.secureinsight.com ..................................................15
TagQuest .......................................................... www.tagquest.com ........................................................67
The Bond Exchange ............................................ www.thebondexchange.com ..........................................88
The National Real Estate Post.............................. www.thenationalrealestatepost.com ..............................83
United Wholesale Mortgage ................................ www.uwm.com ........................................................52-53
D V E R T I S E R S
Company Web Site Page
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APRIL 2016Volume 8 • Number 4
1220 Wantagh Avenue • Wantagh, NY 11793-2202Phone: (516) 409-5555 • Fax: (516) 409-4600Web site: NationalMortgageProfessional.com
The Critical Importance of Industry LeadershipLeadership may not seem like a complex concept. After all, we all know a leader when we see one. Butputting a definition down on paper is as difficult as defining a concept like truth, beauty or honor.Leadership is also our Special Focus for this April 2016 issue of National Mortgage Professional Magazine.It’s hard to imagine a concept of greater importance for our industry today.
In the pages of this issue, we’ll bring you stories that may challenge your concept of leadership. We’llask important questions, like what does it take to become a leader in today’s mortgage marketplace? Are leaders bornor can someone be taught to be a leader? Is age a factor in good leaders? How do you attract leaders to your organi-zation? What personality traits do you feel are most important to be a leader? And perhaps most challenging, once youfind a leader, how do you keep them?
But just talking about these concepts would never be sufficient to fully define what leadership means in our indus-try. For that, we need examples. That’s why we’ve included our 2016 Visionary Organizations in this issue as well. Theseare the companies that set trends, travel ahead of the curve and set the bar for their competitors. The companies inthis year’s Visionary Organizations section have earned that designation for their inspiration to always strive to improveand go above and beyond to assist their clients. These great companies have successfully navigated our ever-changingmortgage industry marketplace and have remained on top.
Where will the next group of visionary firms come from? We think they are already innovating, going where othershave yet to go in a relentless search for what’s next. You’ll find their stories in our brand new NMP Next section, whichwe’re launching in this issue as well. Long-time industry trade publication editor Rick Grant leads this discussion asNMP’s special reports editor. His love of technology and innovation makes him well-suited to seek out the industryexplorers who are leading the rest of us to what’s next.
Even if you don’t see yourself as an intrepid explorer or fearless innovator, we hope the stories we bring you in thisissue will impress upon you the importance of developing your own leadership skills. To that end, we’re very proud ofour new NMP University, a new and innovative way for people working in our industry to get their continuing educa-tion, training and coaching they need to maintain their credentials, and succeed and become tomorrow’s leaders. NMPUniversity will be led by mortgage industry training and coaching veteran, Ron Vaimberg and the online continuingeducation will be Powered by Mortgage Educators and Compliance (MEC). You’ll find more information about NMPUniversity in the next issue and in your e-mail inbox soon.
For our own part, we haven’t focused on being a leader so much as shining a bright light on the leading compa-nies and executives working in our industry. But our growth over the past few months is a true testament to the factthat we take leadership seriously in our own organization. The issue you’re holding comes in at 104 pages, making itthe largest issue of National Mortgage Professional Magazine we’ve ever delivered. We’re very proud of this accom-plishment and proud to be bringing you all of the stories packed into this issue. We hope you enjoy them and theyserve you well.
Lastly, a leader is a mirror of the team that supports them, and with that said, I thank the entire team at NMP forthe efforts they put in each day that has made NMP a growing success story that I am proud to lead.
Sincerely,
Joel M. Berman, Publisher-CEO l NMP Media Corp. l [email protected] Mortgage Professional Magazine is published monthly by NMP Media Corp. • Copyright © 2016 NMP Media Corp.
publisher’s deskFROM THE
STAFF
ADVERTISINGTo receive any information regarding advertising rates, deadlines and requirements, please contactVP-Sales & Marketing Beverly Bolnick at (516) 409-5555, ext. 316 or e-mail [email protected].
ARTICLE SUBMISSIONS/PRESS RELEASESTo submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peckat (516) 409-5555, ext. 312 or e-mail [email protected]. The deadline for submissions is thefirst of the month prior to the target issue.
SUBSCRIPTIONSTo 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 theattention of “Circulation” via fax to (516) 409-4600.
Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of theauthors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or mem-bers of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association ofProfessional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or otherstate mortgage trade associations.
Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activ-ities and/or publications is available on a non-discriminatory basis and does not reflect the endorsementof the product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA, and other state mortgagetrade associations.
National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgagetrade associations do not make any misrepresentations or warranties concerning the regulatory and/orcompliance aspects of advertisers, products or services and/or the editorial content contained in NMPMedia Corp. publications. National Mortgage Professional Magazine and NMP Media Corp. reserve theright to edit, reject and/or postpone the publication of any articles, information or data.
Eric C. PeckEditor-in-Chief
(516) 409-5555, ext. [email protected]
Joey ArendtArt Director
(516) 409-5555, ext. [email protected]
Scott KoondelVP of Operations
(516) 409-5555, ext. [email protected]
Richard ZytaSocial Media Ambassador
(516) [email protected]
Rick GrantSpecial Reports Editor
(570) 497-1026 (direct)(516) 409-555, ext. 311
Joel M. BermanPublisher - CEO
(516) 409-5555, ext. [email protected]
Beverly BolnickVP-Sales & Marketing
(516) 409-5555, ext. [email protected]
Phil HallManaging Editor
(516) 409-5555, ext. [email protected]
Francine MillerAdvertising Coordinator
(516) 409-5555, ext. [email protected]
Dylan PollockAdministrative Assistant
(516) 409-5555, ext. [email protected]
Featured Editorial ContributorsRichard M. BettencourtJr., CRMS, CMHS
Andy W. Harris, CRMS
David Lykken
Pam Marron
Ted W. Tozer
Andrew Liput
Editorial ContributorsGavin T. Ales
Amy Bergseth
Vladimir Bien-Aimé
Jeff Bode
Michael Boggiano
Laura Burke, MBA, MS, MIS, CFE, EA
Lisa Coleman
Kerry W. Elam
Casey Fleming
Michael Groff
Brad Herbert
Tom Hutchens
Chad Jampedro
Carl Markman
Wes Miller
Bubba Mills
Elizabeth Morales
Brian Sacks
Jeffrey Tesch
Sarah Valentini
Marc Wayshak
Eric Weinstein
Fowler Williams
Kerry Wirth
NATIONAL MORTGAGE PROFESSIONAL MAGAZINE’S
E D I T O R I A L C O N T R I B U T O R S
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RENO STRIKES BACK
National PresidentKelly Hendricks(314) [email protected]
President-ElectNikki Bell(678) [email protected]
Vice PresidentCathy Kantrowitz(845) [email protected]
Vice PresidentLaurel Knight(425) [email protected]
SecretaryWindee Falla(281) [email protected]
TreasurerJudy Alderson(918) 250-9080, ext. [email protected]
ParliamentarianFrances Reinhardt(678) [email protected]
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NAMBThe Association of
Mortgage Professionals2701 West 15th Street, Suite 536 l Plano, Texas 75075
Phone: (972) 758-1151 l Fax: (530) 484-2906Web site: www.namb.org
OFFICERSRocke Andrews, CMC, CRMS—PresidentLending Arizona LLC3531 North Pantano Road l Tucson, AZ 85750Phone: (520) 886-7283 l E-mail: [email protected]
Fred Kreger, CMC—President-ElectAmerican Family Funding28368 Constellation Road, Suite 398 l Santa Clarita, CA 91350Phone: (661) 505-4311 l E-mail: [email protected]
John Stevens, CRMS—Vice PresidentMountain West Financial380 North 600 East l Pleasant Grove, UT 84062Phone: (801) 427-7111 l E-mail: [email protected]
Rick Bettencourt, CRMS—SecretaryMortgage Network300 Rosewood Drive l Danvers, MA 01923Phone: (978) 777-7500 l E-mail: [email protected]
Andy W. Harris, CRMS—TreasurerVantage Mortgage Group Inc.16325 Boones Ferry Road, #100 l Lake Oswego, OR 97035 Phone: (503) 496-0431, ext. 302E-mail: [email protected]
John Councilman, CMC, CRMS—Immediate Past PresidentAMC Mortgage Corporation10136 Avalon Lake Circle l Fort Myers, FL 33913Phone: (239) 267-2400 l E-mail: [email protected]
Donald J. Frommeyer, CRMS—NAMB CEOAmerican Midwest Bank200 Medical Drive, Suite C-2A l Carmel, IN 46032Phone: (317) 575-4355 l E-mail: [email protected]
DIRECTORSKimber White l RE Financial Services Inc.1620 West Oakland Park Boulevard #201 l Oakland Park, FL 33311Phone: (954) 306-3553 l E-mail: [email protected]
Olga Kucerak, CRMS l Crown Lending328 West Mistletoe l San Antonio, TX 78212Phone: (210) 828-3384 l E-mail: [email protected]
David Luna, CRMS l Mortgage Educators and Compliance947 South 500 E, Suite 105 l American Fork, UT 84003Phone: (877) 403-1428 l E-mail: [email protected]
Linda McCoy, CRMS l Mortgage Team 1 Inc.6336 Piccadilly Square Drive l Mobile, AL 36609Phone: (251) 650-0805 l E-mail: [email protected]
Nathan Pierce, CRMS l Advanced Funding Home Mortgage Loans6589 South 1300 East, Suite 200 l Salt Lake City, UT 84121Phone: (801) 272-0600 l E-mail: [email protected]
Valerie Saunders l RE Financial Services13033 West Lindburgh Avenue l Tampa, FL 33626Phone: (866) 992-0785 l E-mail: [email protected]
Robert Sweeney, CRMS600 East Carmel Drive l Carmel, IN 46032Phone: (317) 625-3287 l E-mail: [email protected]
Michele Velez, CMC1300 South El Camino Real, Suite 505 l San Mateo, CA 94402Phone: (650) 409-2850 l E-mail: [email protected]
NAMB 2015-2016 Board of Directors
William BowerPresident(800) [email protected]
Julie WinkVice President/Treasurer(901) [email protected]
Mike BrownEx-Officio(908) 813-8555, ext. [email protected]
Mary CampbellDirector(701) [email protected]
Matthew [email protected]
Maureen DevineDirector(413) [email protected]
Scott LedbetterDirector(214) 783-3315
Mike ThomasDirector(615) 386-2285, ext. [email protected]
Dean WangsgardDirector(801) [email protected]
Delia [email protected]
Terry ClemansExecutive Director(630) [email protected]
Jan GerberOffice Manager/Member Services(630) 539-1525JGerber@ NCRAInc.org
National Association of Professional Mortgage Women1851 South Lakeline Boulevard, Suite 104, Box 303
Phone: (800) 827-3034 • E-mail: [email protected] site: www.napmw.org
2015-2016 NAPMW National Board of Directors
National Consumer Reporting Association701 East Irving Park Road, Suite 306 l Roselle, IL 60172
Phone: (630) 539-1525 l Fax: (630) 539-1526Web site: www.ncrainc.org
2015-2016 Board of Directors
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By Andy W. Harris, CRMS
Most of us have heard that the average age of a mortgageloan originator (MLO) today is 54 years of age. That numbermay vary a little, but needless to say, the mortgage indus-try is in dire need of younger talent. This number should
open our eyes to look down the road and see that we may have aproblem if we don’t train and educate the next generation to grow in this industry.This is important for our industry and certainly important for the consumers weserve. We must embrace Millennials in this industry and strategically recruit andtrain them the right way to succeed and be attracted to what this great industry hasto offer.
I’ve battled with this for the last several months, specifically as a business ownerthrough our growth and demands. Do we hire experienced mortgage loan origina-tors or do we hire green and train? Unfortunately, re-training people already in thebusiness with bad habits I find to be much harder. With a quickly changing indus-try requiring constant adaptation and speed, I’ve found it’s certainly hard to teachan old dog new tricks. I’d rather have a fresh, new and motivated employee withlimited experience and a clean slate than one with quantity (not always quality)experience or challenging habits.
I believe Millennials get an unfair reputation at times with being entitled or lazy.The lazy ones are certainly out there, but there are also thousands of very intelli-gent and motivated Millennials I believe offer huge opportunities to our industry.Many of them are more innovative due to modern knowledge and technologicalabilities. They were raised in an environment where any data they seek is literallyat their fingertips. They can adapt well and need little training when it comes tomost computers and systems. That certainly cannot be said for most of those fromolder generations.
Here are a few statistics according to the American Bankers Association (ABA) thatI find somewhat shocking:
l Born between 1980-2000, Millennials are the largest generation in American his-tory, at 83.5 million people.
l By 2022, they will comprise 44 percent of the nation’s workforce.l Only 26 percent get married before the age of 32.l Eighty-six percent put money into savings every month.l Seventy-five percent of those who are college graduates have student loan debt,
averaging $29,000.
I don’t know about you, but if you actually think about these statistics I see ahuge market of untapped potential. Think about the stats and what our industrycould offer young entrepreneur-spirited individuals. The sky is the limit, but theyneed the right training. We work in a great industry with unlimited possibilities.Finding the right motivated younger talent could be a huge asset to your team, andof course, a great opportunity for someone entering this industry today. I suggestthat we all brainstorm with our teams to motivate, recruit and train new youngertalent in this industry to get that average age down moving forward.
Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based VantageMortgage Group Inc. and past president of the Oregon Association of MortgageProfessionals. He may be reached by phone at (877) 496-0431, [email protected] or visit VantageMortgageGroup.com.
Migrate to Millennials
Sub-Prime: Establishing a NewTrack Record
SPONSORED ED ITORIAL
By Tom Hutchens
Sub-prime, or “non-prime,” mortgage lending returned tothe market almost three years ago and with it, many criticswho understandably voiced concerns that history would re-peat itself. Lenders who decided to venture into this new
landscape and tap a borrower base of Americans unable to secure tradi-tional financing were faced with an uphill battle on how the general pop-ulation perceived sub-prime.
Today’s products aren’t the same as the sub-prime loans that led to thehousing crisis. In fact, sub-prime/non-prime today is quite different. Newregulations have helped to ease these products back into the market. Theskeptics are starting to come around and realize that today’s mortgagesare proving to be much less risky than their predecessors.
Unlike the sub-prime loans of 2006, today’s loans have guidelines inplace to alleviate risk. Here is a breakdown of what’s different today:
l Ability-to-Repay (ATR): ATR is one of the many regulations that resultedfrom the Dodd-Frank Act. ATR requires that originators look at a po-tential borrower’s complete financial picture to make sure their exist-ing debt obligations plus the new loan amount won’t surpass areasonable percentage of their income. Despite popular belief, non-prime loans still need to adhere to ATR standards.
l Skin in the game: Higher downpayment requirements mandate thatborrowers provide a significant contribution towards closing the loan.Borrowers with the riskiest credit profiles are required to put down thehighest downpayments to further compensate for that risk. This prac-tice of ensuring prudent loan-to-value (LTV) ratios lessens the chancesof default.
l No prepayment penalties: Today’s sub-prime loans do not come witha pre-payment penalty on them. At any time, a borrower can refinanceto a conforming loan without having to pay a penalty on their existingloan.
l Appraiser Independence Regulation (AIR): Another result of Dodd-Frank Act regulations, AIR ensures that appraisers are truly independ-ent and the LTV is accurate. Prior to Dodd-Frank, appraisers workedfor the loan originators. This was a clear conflict of interest, but newregulation removes that conflict.
l Better credit scores: The average credit score of sub-prime loans in2006 was 580. Angel Oak Mortgage Solutions portfolio of non-primeloans’ credit scores average about 680. The credit quality of these loanshas increased significantly in the new era.
Although non-prime mortgages fall outside the QM safe harbor, thenext generation of non-prime lending is proving to be very safe. In fact,Angel Oak Mortgage Solutions has only had three loans go into defaultsince we started originating two-and-a-half years ago. The challenge withthese new regulations, however, is that they require a well-documented,manual underwriting process that cannot be automated; however capablelenders with expertise in due diligence procedures stand to take advantageof bringing these products back to market while avoiding excess risk.
Tom Hutchens is senior vice president of sales and marketing at Angel OakMortgage Solutions, an Atlanta-based wholesale lender currently licensed in24 states. Tom has been in the real estate lending business for nearly 20years. He may be reached by phone at (855) 539-4910 or e-mail [email protected].
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©2016 All rights reserved. This is not a commitment to lend. Restrictions may apply. LTV limit is based on current, accurate appraised value. Civic Financial Services, LLC reserves the right to
amend rates and guidelines. All loans are made in compliance with Federal, State, and Local laws. Civic Financial Services, LLC is a California Finance Lender under NMLS 1099109 and the California
Department of Business Oversight license #603L321, AZ Mortgage Broker license #092863, ID Mortgage Broker/Lender License #MBL-8288, OR Mortgage Broker License #ML-5282, and WA
Consumer Loan Company License #CL-1099109. Civic Financial Services, LLC is an equal opportunity lender.
We know; you need a lender who’ll keep your profit margins high and
your blood pressure low. Rest assured, at CIVIC you’ll get loan
rates that are among the most competitive in the industry. You’ll
also get lightning fast approvals and quick closing times. So if
you’ve got a project that needs special attention, call the number
below — your margins and your business will be healthier than ever.
Corporate Headquarters
2015 Manhattan Beach Blvd, Suite 106
Redondo Beach, CA 90278
310.504.3618 / www.civicfs.com
• Funding in 4-10 days
• Up to 75% LTV
• No minimum FICO
• 24-48 hour in-house appraisals
• Competitive fixed rates
• Loan amount $100K-5 Million
• Foreign National program
A LOAN RATE SHOULD INCREASE YOUR PROFIT MARGINS, NOT YOUR BLOOD PRESSURE.
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By Dave Hershman
We have previ-ously paintedthe “picture”of a typical
manager in the industry because mostsales managers and owners must per-sonally produce, recruit, hire, trainand coach. For most of these man-agers, producing was a full-time jobbefore they became a manager. Nowthat same person must split up theirtime among these tasks:
l Personal productionl Supervising/coachingl Fighting firesl Attracting candidatesl Interviewingl Administrative tasksl And more
The time spent among these tasksis not homogenous by any means.The majority of the time is spent pro-ducing, fighting fires and on adminis-trative tasks. For example, a typicalproducing sales managers spends anaverage of 50 percent or more of theirtime within the personal productioncategory.
It is important to recognize thisfact because it leads us to understandwhy the industry produces managersas opposed to grooming leaders. Notonly have we put our managers in aposition in which they are more like-ly to spend their time reacting andputting out fires rather than leading.In addition, we give these same man-agers little guidance as to how tomake the transition from manager toleadership.
After painting the picture of theindustry, we must next look at thedefinition of the term leader. If youasked one-hundred different man-agement experts, you would get 100
different answers. We prefer some-thing very simple: Managers “manage”situations, while leaders change situa-tions through the implementation ofpositive forces.
Of course, this definition is worthlesswithout elaboration in the form ofexamples which distinguish betweenleadership and management:
l A manager has goals, while a leaderalso has a long-term vision ofwhere they would like to lead theirteam. It is from this vision in whichan organization’s goals must be for-mulated. For employees—under-standing the vision is essential sothat they can become more thanjust an employee, but an integralteam member.
l A manager tells people what to do. Aleader leads by example. For exam-ple, how does the leader react in acrisis? Do they panic or do they leadthe team through the crisis profes-sionally?
l Managers micro-manage, while lead-ers delegate. By delegating responsi-bility and not micro-managing, lead-ers let their team members deter-mine what they should be accom-plishing with regard to helping theorganization achieve their long-termvision.
l A manager quells fires while a leaderprevents them. The foresight to pre-vent fires is a very important exam-ple of leadership.
l A manager communicates when nec-essary. A leader communicatesproactively. Going back to the exam-ple of having a long-term vision, theleaders must communicate thatvision clearly. When does a managerthink that communication is neces-
sary? Usually when things go wrong.Then it is time for a long e-mail, newpolicy or a meeting.
l A good manager implores their loanofficers to follow-up, from theprospect stage to closing theirpipeline. Leaders lead by example inthis regard as well, whether they aremanaging their own pipeline or fol-lowing with their staff. If the manag-er does not return phone calls and e-mail on a timely basis, how can theyexpect their loan officers to do thesame?
l Good managers hire producers.Leaders retain those producers.Leaders work hard to uncover andmeet the needs of their employees.That means they must probe deeplyand be a great listener. This is againwhere follow-up and communica-tion skills are essential. It is some-times not easy to determine whereour employees need help, however,spending the time and effort to findout is critical.
l Good managers are great talkers.Leaders are great listeners. Yes, weoften have to teach and inspire asleaders. But if we don’t listen, wewill never find out what our employ-ees really need. Even in interviews,we should be asking questions andlistening, rather than talking.
l A leader’s integrity can never be inquestion. Again, this brings us backto being an example. If we are not“THE” example in this regard, how
can we not expect the same fromour loan officers and operationalstaff? Many walk a fine line in thisindustry, but leaders must standvery clear of this line.
l Managers are reactionary, butbecause leaders are proactive, theyare likely to be more consistent intheir direction of leadership.Managers are more likely to sched-ule a staff meeting when there is acatastrophe or send out an “effectiveimmediately” e-mail? Leaders sched-ule meetings on a regular basis toprevent these issues from arising.Employees can count on theirleader’s reaction day-to-day, whilethe reaction of a manager will vary.
l A great leader carries a positive mes-sage all the time, while the manageris not as consistent in this regard.The leader’s positive message willinfluence team members to be morepositive, thus increasing the effec-tiveness of the organization. Thispositive message should includethanking employees and clientsoften. Even the way the message iscarried out is important. When aleader is “criticizing or pointing outa mistake,” it should be done in pri-vate. When a leader is lavishingpraise, this should be accomplishedin public.
Most importantly, managers real-ize that recruiting is one of their mostimportant functions, yet most man-agers dedicate the smallest portion oftheir time to this task. The result is a
Recruiting,Training
andMentoring
Corner
Recruiting,Training
andMentoring
Corner
Assessing the Marketing Skills of a Rookie Candidate
“Managers ‘manage’ situations, while leaders change situations through the implementation of positive forces.”
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smaller team whose members are notof the highest quality. The time need-ed to manage this team which is gen-erating little income is very. dispro-portionate. The result? The managerspends more time producing becausethey can control the outcome andthen they spend even less timerecruiting.
This is precisely why one key to greatleadership is a long-term vision of thefuture. The vision is to build a largequality team which increases profitsand overrides. While the income of thesales manager may not rise, the officeor division will not be as dependentupon one person’s production. What ifthe manager becomes ill and the levelof production suffers or stops com-pletely? If the manager has a large andproductive office, the profitability ofthat office will not suffer to the sameextent.
It typically requires great vision tobegin spending time on a task that willbring longer-term rewards, but perhapssacrifice short-term benefit. How mightwe bring our time and priorities intogreater equilibrium? It is easy for us tosay—block an hour each day to recruit.But someone directing the manager toblock the time does not make the timeavailable.
Anytime one has too many tasks toundertake and not enough time toaccomplish these tasks, there are onlytwo choices:
l Prioritize the tasks: Again, this is anexample of what great leaders do,they decide what is more importantand focus upon these tasks. Othertasks may be delegated to others,postponed or even eliminated.
l Use synergy: If you want to getmore done in less time, you willneed to find a way to achieve morethan one goal with the same activ-ity. We will delve into this idea in afuture column.
The implementation of synergisticprincipals will not only increase pro-ductivity, it will also help lessen thestress of manager who has several areasof responsibilities, all of which could befull-time jobs by themselves. In mybook, More Income With Less Stress, Iintroduce “The Seven Rules ofMaximum Synergy Marketing.”
These rules will help managersachieve more with less time, energyand money. Loan officers also benefitfrom the use of these principals asthere are many parallels betweenrecruiting and sales. The greater profi-ciency managers gain with regard theuse of these concepts, the more effec-tive they will be as mentors to theirloan officer team. As a matter of fact,the implementation of this concept asway to achieve two management objec-tives is an illustration of the use of syn-ergy in itself.
The rules are designed to help oneopen their eyes to the opportunitiesthey are missing. To implement these,
managers will have to change the waythey think about the industry and man-agement in general. This is a major stepwhich will help increase efficiencies,but also help differentiate managersfrom their competition.
Here are the rules:
1. Everything you do must have a sec-ond objective.
2. If you are marketing by yourself—you are wasting synergy.
3. Some targets are more effectivethan others.
4. Some tools are more effective thanothers.
5. Everything you do can be made
more effective through additionaldoses of synergy.
6. Do not market without a responsemechanism.
7. Do not market unless you are deliv-ering value.
We will end this column with anexercise that will hopefully help us startthinking like a leader, instead of a man-ager. The question is-how can theimplementation of these rules help youincrease the efficiency of your recruit-ment efforts?
It has been well-established by theinformation we have introduced thatthere are many fundamental differ-
ences between managers and leaders inthis industry. Our industry has atremendous number of managers.However, what we need is more leader-ship. Hopefully we can continue to helpour managers make the transition inthis regard.
Dave Hershman is a top author in themortgage industry with seven bookspublished. He is also the founder ofthe OriginationPro Marketing System,and currently the director of branchsupport for McLean Mortgage. He maybe reached by e-mail [email protected] or visitOriginationPro.com.
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DocMagic FormallyLaunches New eClosingSolution
DocMagic Inc. has announced the for-mal launch of its fully integratedeClosing solution that electronicallytransforms the entire mortgage processfrom initial eDisclosure to final eClosingthrough investor eDelivery. DocMagic’stotal eClosing process seamlessly inte-grates its eDocument library, SMARTDoceNote with eSignature, eNotary, MERSeRegistration, eDelivery and eVaultservices in a comprehensive end-to-endeClosing solution that delivers substan-tially faster closings, total data trans-parency, superior regulatory compli-ance and maximum process efficiency.
The total eClosing solution is alsoseamlessly integrated into DocMagic’sSmartCLOSE collaborative closing por-tal, offering a secure, centralized onlineenvironment for lenders, settlementproviders and other parties to share,validate, audit, track and collaborate ondocuments, data and fees backed with a100 percent TRID compliance guaran-tee. The new process is easily accessiblefrom within SaaS-based SmartCLOSEand on-premise SmartSAFE XL systems,including the eSigning, eDelivery andeVaulting of all documents.
DocMagic’s eMortgage solutions havebeen vetted and approved by FannieMae and MERS to support all threeeMortgage categories for eVault, eNoteand eClosing. DocMagic’s participationas a leading player in numerouseClosing pilots, including the CFPB’seClosing Pilot initiative last spring hasled to the rapid advancement ofeClosing adoption as a solution for reg-ulatory compliance tracking, reducingdata errors, data transparency, andbringing borrower knowledge and satis-faction to the loan process.
“The total eClosing solution is an out-of-the box, easy to implement, fullypaperless, patented solution that com-bines the most advanced functionalityand continuous compliance trackingwith robust borrower and lender friend-ly user features,” said Dominic Iannitti,president and CEO of DocMagic.“Borrowers can communicate with their
lenders and settlement agents andeSign documents while DocMagic runscontinuous automated complianceaudits throughout the entire loanprocess, guaranteeing compliance onfactors effecting the salability of yourloan, from TRID tolerance levels tocompliance with anti-predatory lend-ing and higher-priced mortgage loanlaws, all while tracking every iterationof the data and speeding up the closingprocess.”
“The DocMagic total eClosing solu-tion is revolutionizing the traditionalpaper mortgage process and the timingof this couldn’t be better,” said TimAnderson, director of eServices atDocMagic. “With the electronic dataverification, delivery and record reten-tion requirements of TRID, lendershave to demonstrate proof of compli-ance, control and accountability of theentire mortgage process. We havedeveloped only platform in the indus-try that integrates and supports all keyeMortgage functions within a singlesolution. The total eClosing solutionprovides a full electronic process in aone stop solution—which is truly revo-lutionary.”
CMG Financial AutomatesAppraisal Process ViaeTrac From Global DMS
Global DMS has announced that CMGFinancial has streamlined the manage-ment of its appraisal process from startto finish using Global DMS’ eTrac plat-form. This has enabled CMG to workwith its AMC providers that have dis-parate systems through a single inter-face with eTrac. As a result, processorsand brokers no longer have to log intoeach AMC’s system to place appraisalorders. From within eTrac, CMG userscan order and assign appraisals, trackthem with real-time status, reviewappraisals, and they are then automat-ically delivered to the UniformCollateral Data Portal (UCDP) in full
compliance and without errors ormissing data.
“After we implemented eTrac, ourAMC assignments became automaticand thus it really simplified and spedup our orders,” said Peter Gilbert, chiefcredit officer at CMG. “The eTracWorkflow Engine also played a signifi-cant role in the implementation byautomating notifications and filedelivery to the ordering parties andborrowers. eTrac has made ourappraisal process very easy and effi-cient and we always know that we arecompliant and have qualityappraisals.”
Global DMS’ Workflow Engine elimi-nates manual intervention, automati-cally handling many intricate and dis-parate tasks in CMG’s unique appraisalprocess. Custom business rules wereapplied to tailor CMG’s appraisal man-agement workflow to their preferencesand specific internal procedures.
“CMG runs numerous appraisalorders through our system each monthwith an elevated level of workflow-dri-ven efficiency,” said Vladimir Bien-Aime, president and CEO of GlobalDMS. “The fact that eTrac effectivelycentralized CMG’s utilization of multi-ple AMCs and automated nearly allappraisal functions using ourWorkflow Engine speaks volumesabout the flexibility and scalability ofour platform.”
eTrac facilitates far-reaching com-pliance functionality that is proven toautomatically keep lenders compliantwith changing state-based rules, feder-al laws, the Consumer FinancialProtection Bureau (CFPB) and theDodd-Frank Act.
Credit Plus LaunchesFACTCheck for IncreasedTax Transcript Accuracy
Credit Plus Inc. has announced theavailability of FACTCheck, a new “factchecked” report that can be added toIRS 4506-T orders. The report provides
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lenders with an overview of incomereported to the IRS, calculates and sum-marizes historical income and deter-mines income stability. At the sametime, FACTCheck tests for ATR compli-ance and identifies what further actionand any additional supporting docu-ments, if any, are needed.
By adding this product to 4506-Torders, lenders can accelerate theirprocess to just minutes per loan, elimi-nate manual underwriting errors, andshow that due diligence was performedwhich assists with the sale of loans tothe secondary market.
“FACTCheck streamlines the tax tran-script analysis process into an auditableformat which helps lenders speed up,standardize, and document theirunderwriting process,” said GregHolmes, national director of sales andmarketing at Credit Plus. “The reportoffers our customers a way to improvetheir income quality analysis andresults while reducing their legal andrepurchase risks.”
ResMac Releases Marti Version 5.0
ResMac Inc. has announced the releaseof Marti 5.0 to support automatedIntegrated Disclosures (TRID). This pro-prietary software program will auto-mate several of the manual processesused to support compliance andimprove efficiencies in underwritingand customer closings. Several screenshave been redesigned to best support“ease of use” for ResMac’s customerbase, making the overall experiencethat much more compelling, efficientand improved.
Right behind this release will beMarti version 5.01, which will supporton-demand initial through closing doc-uments for all approved customers. Inthe third quarter, ResMac will releaseits new automated LE for approved cus-tomers—fees warranted and derivedfrom a third party making costs to curea thing of the past.
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Imagine being served by an innovative company with the financial stability that values you and your ideas, and where the sales force is the heart of the company strategy… One where closing loans on time and exceeding our broker associates’ expectations are two major facets of our daily business model.
*Rankings Source: Inside Mortgage Finance. Caliber Home Loans, Inc., 3701 Regent Boulevard, Irving, TX 75063 (NMLS #15622). 1-800-401-6587. Copyright ©2015. All Rights Reserved. Equal Housing Lender. For real estate and lending professionals only and not for distribution to consumers. This communication may contain information that is privileged, confidential, legally privileged, and/or exempt from disclosure under applicable law. Distribution to the general public is prohibited. Caliber Home Loans is an Equal Opportunity Employer.
To learn more, visit us online at www.caliberwholesale.com or send an email to [email protected].
Caliber Wholesale finished 2015 as the #3 Wholesale Lender
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CCSBS Seeking ExamExperts: NAMB UrgesMembers to Apply asSubject Matter Experts
NAMB—TheAssociationof Mortgage
Professionals wanted to remind thenation’s mortgage professionals thatthe deadline of April 29, 2016 isquickly approaching for SubjectMatter Experts (SME) to submit theirdesire to work on the NationwideNMLS Exam.
The Exam was started years ago as alicensing requirement of the SAFE Act.The Exam must undergo changes as themortgage industry undergoes changes.For example, when the SAFE Act waspassed and the initial exam written,there was no TRID rule. The Exam wasreviewed and updated, and now it istime to update it again.
The SMEs will be selected with assis-tance by the Conference of State BankSupervisors (CSBS) and the StateRegulatory Registry LLC (SRR) in arecruiting process for subject matterexperts to serve on SSR National TestMaintenance Committees.
“Some of the best Subject MatterExperts in the field of residential mort-gages are members of NAMB, and Iencourage our members to apply forthis important opportunity,” said RockeAndrews, president of NAMB.
NAMB also noted that there are timecommitments and experience require-ments. Selected SMEs will be initiallytrained and asked to write proposedtest questions for the National Exam.The training sessions are several hoursin duration, as well as ongoing andadditional training sessions as materi-als are amended. Attendance isrequired at all training meetings.Committee meetings are scheduled tobegin quarterly, beginning in June,again in September and finally inJanuary 2017. SMEs should have a min-imum of three years of experience inthe residential mortgage lending arenaand be considered an expert.
To be considered and nominated,please fill out the application foundonline at 2016smesurvey.question-pro.com.
Study: TRID Adds $209 to Loan Costs
It appears that loan transparency comeswith a highly visible price tag: A newstudy from STRATMOR Group has reaf-firmed that the changes brought by theTILA-RESPA Integrated Disclosure (TRID)rule has jacked up the price of loanorigination.
“On average, since October 2015,TRID has increased lender back officefulfillment and post-closing costs by anaverage of $209 per loan, and lendersare estimating that only about 17 per-cent of those costs can be recoveredthrough additional charges,” saidMatthew Lind, STRATMOR senior part-ner and founder.
Still, mortgage professionals aremaking the best of a difficult situation.The STRATMOR study found that 87 per-cent of survey respondents had eitherfully or mostly implemented their TRIDrequirements, with only one percentadmitting that their efforts were “waybehind.” Seventy-two percent of smallermortgage companies and 80 percent ofmid-sized independents had fullyimplemented their TRID changes,whereas only 33 and 44 percent ofsmall and mid-sized banks have accom-plished that duty.
Banks, in particular, appear to bemost burdened by TRID, with 31 per-cent of bank respondents bemoaningthat their experience under TRID aseither “difficult” or “terrible”—in com-parison, only 16 percent of independ-ents shared that level of grief. But onthe whole, Lind insisted that today’sproblems can only lead to a better cus-tomer service experience.
“TRID seems to be associated with a
significant pickup in borrower satisfac-tion, despite somewhat slower applica-tion-to-closing times,” he said. “At theend of the day, improving the borrow-er’s experience is a main objective ofTRID, and in an increasingly competi-tive origination market, it is also a pri-mary goal of lenders as well.”
FHFA Planning for Post-HARP Market
With the Home Affordable RefinanceProgram (HARP) set to expire at the endof the year, Federal Housing FinanceAgency (FHFA) Director Mel Watt is seek-ing to lay the foundation of a marketthat will not leave at-risk homeownersin difficult financial situations.
Speaking recently in Washington,D.C. at the Public Policy Luncheonsponsored by Women in Housing andFinance, Watt noted that his agencyand the government-sponsored enter-prises were working with to lenders,mortgage insurers, and investors tostudy a post-HARP endeavor thatwould accommodate high loan-to-value (LTV) borrowers.
“During our outreach discussions, weare reminding industry participantsthat borrowers who previously com-pleted a HARP refinance will not be eli-gible to refinance under a new high-LTVprogram,” Watt said. “When we con-clude our outreach, the enterprises willpublish an announcement that reflectsthe eligibility guidelines and productterms that we believe will meet theneeds of high-LTV borrowers in thefuture.”
But with nine months to go beforeHARP runs its course, Watt stated thatthe FHFA would work ensure borrowers
can take full advantage of that pro-gram’s benefits.
“Despite extensive outreach effortsby the enterprises and their lenderpartners, over 360,000 borrowersnationwide still remain both eligiblefor HARP and able to benefit financial-ly from HARP,” said Watt. “FHFA andthe enterprises are attempting newmethods to raise borrower awarenessthrough social media and Webinars,and we are asking stakeholders to helpus get the word out about HARP beforethe end of the year.”
Also during his speech, Watt brieflyalluded to the once-contentious butnow barely-mentioned subject of prin-cipal reduction with a promise that hewould decide in the next 30 dayswhether it was officially a non-issue orif there was a “win-win” approach tothis strategy for future policy planning.“So, while I don’t have an answertoday, I invite you to stay tuned formore on this in the near future,” hesaid. “As always, our decision and thereasons for making it will be docu-mented and transparent.”
House Passes SCRAForeclosure ExtensionProtection
The U.S. House of Representativespassed the Foreclosure Relief andExtension for Servicemembers Act of2015, which extends foreclosure pro-tection for military homeowners fromthe current 90-day period to a one-yearperiod beginning in January 2018.
The bill is a House companion toS.2392, which passed the Senate inDecember. The foreclosure protectionelement of the Servicemembers CivilRelief Act (SCRA) expired at the end oflast year, but the extended protectionwill be retroactive to Jan. 1, 2016, whenthe bill is signed by President Obama.
“When our servicemembers come
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home they shouldn’t have to fear los-ing their homes as they transition backto civilian life,” said Rep. Steve Stivers(R-OH), who co-sponsored the bill withRep. Stephen Fincher (R-TN) and DennyHeck (D-WA). “The foreclosure protec-tion extension will give them the timethey need to get back on their feetfinancially and begin their new livespost military service.”
The legislation was backed by acoalition of veterans’ organizations andhousing and financial services tradeassociations. David H. Stevens, presi-dent and CEO of the Mortgage BankersAssociation (MBA), commended theHouse vote.
“MBA applauds the House passageof an extension of the SCRA’s importantforeclosure protections,” Stevens said.“SCRA provides the brave men andwomen of our military with the cer-tainty they won’t lose their home whenthey transition back to civilian life.That’s something that should neverhappen. Our industry is committed tohelping members of the military stay intheir homes and we are gratefulCongress has renewed this vital home-ownership tool.”
Separately, the Consumer FinancialProtection Bureau announced that itreceived approximately 2,800 com-plaints from military personnel relatedto mortgages during 2015. The majori-ty of complaints were related to servic-ing issues, including loan modifica-tions, collections and foreclosures.
GSF Mortgage Approvedas a Freddie MacServicer/Seller
GSF Mortgage has announced that it hasbeen approved as a single-family hous-ing Freddie Mac seller/servicer. FreddieMac was chartered by Congress in 1970to purchase loans from mortgagelenders. These mortgage lenders couldthen replenish their supply funds and inreturn have more capital available tolend to more borrowers.
GSF Mortgage is pleased to share inFreddie Mac’s mission to expand oppor-tunities for homeownership and afford-able housing. In 1995, GSF Mortgage wasformed to provide solutions for borrow-ers pursuing homeownership. For morethan 20 years, GSF Mortgage has offeredloan programs eligible for Freddie Mac’sguidelines. The company is excited toexpand their offering and execution ofavailable products.
“We are very pleased and excited toreceive our seller/servicer approval withFreddie Mac,” said GSF MortgagePresident Chad Jampedro. “We seeFreddie Mac holding a clear advantagein the marketplace for products andservices. This approval strengthens GSF’soverall product offering and servicingoperation and provides yet anotherstrategic option for our borrowers andreferral partners.”
GSF Mortgage is now approved with allof the agencies: Freddie Mac, Fannie Maeand Ginnie Mae. This means that the com-pany is able to sell directly to these agen-cies and offer all agency products.
Trade Groups Call Out CFPB on Message Confusion
Three leading financial services trade
associations have openly questionedthe Consumer Financial ProtectionBureau’s (CFPB) regulatory efforts.
At a hearing yesterday before theSenate Banking Committee, MortgageBankers Association (MBA) Senior VicePresident of Legislative and PoliticalAffairs Bill Killmer urged the CFPB toprovide clear “rules of the road” when-ever it plans to create new rules or toupdate both existing guidelines and theinterpretations of longstanding policies.Killmer also repeated an oft-statedindustry concern regarding the CFPB’seagerness to aggressive enforce its will.
“Five years after the enactment ofDodd-Frank, enforcement actions pres-ent very significant challenges to theresidential mortgage industry,” Killmer
said. “Unfortunately, the CFPB hasrecently appeared to take a ‘regulationby enforcement’ approach, offeringindustry participants little guidanceand simply instituting claims againstthem—often using new interpretationsof old rules … Unfortunately, despitelenders’ good-faith efforts to complywith the CFPB’s rules—including usingcompliance management systems,seeking advice from outside counseland seeking clarity directly from theCFPB—ambiguities remain andanswers, even among CFPB employees,are inconsistent. Oral guidance,whether provided privately in responseto individual inquiries or on CFPB’s
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Webinars, does not address the need forauthoritative written guidance issuedbroadly to industry.”
Killmer also cited the implementa-tion of the TRID rule last fall as anexample of a communications malfunc-tion by the CFPB.
“At its core, TRID represents thelargest restructuring of the residentialmortgage application-to-closing processin nearly 40 years,” Killmer said.“Implementing this new rule requiredmajor changes to industry systems andbusiness processes as well as thousandsof hours of training. In light of this com-plexity, the CFPB announced prior tothe Oct. 3 effective date that it wouldtake into account ‘good faith efforts’ byindustry to comply with the rule.Unfortunately, the CFPB did not providea timeline for this good faith window,nor did it define the scope of good faithcompliance.”
Separately, Richard Hunt, presidentof Consumer Bankers Association, useda speech before a banking trade publi-cation conference to deride the agency’sconsumer complaint database as being“not even a better version of Yelp,”adding that the information provided isnot verified before being made public.
“When we think the CFPB is wrong,we go after them,” said Hunt, accordingto coverage of his presentation fromAuto Finance News. “When we thinkthey are right, we give them credit. AndI think the CFPB is dead wrong abouttheir portal system.”
Speaking at the same conference,Camden Fine, president and CEO of theIndependent Community BankersAssociation (ICBA), shared Hunt’s concerns.
“More concerning is that they misusethe statistics from the portal,” he said.“They are not transparent, and we don’tknow how they are slicing and dicingthat data. In fact, they can say anythingthey want about a bank, depending onhow they ‘cook the books,’ so to say.”
Shiller: Housing is“Driven by Psychology”
The co-founder of the S&P/Case-ShillerHome Price Index has studied the latestround of home price increases and hasconcluded the upward activity is beingfueled by emotional impulses ratherthan economic reality.
“These markets, I think, are substan-tially driven by psychology,” said RobertShiller, a Yale economics professor, dur-ing an interview on the Fox News show“Cavuto: Coast to Coast.” “And the psy-chology now is a little bit hard to inter-
pret. Note that the cities with thebiggest price increases are successfultech, entrepreneurial cities in manycases. So maybe people kind of believein these markets as their salvation ortheir hope.”
Shiller pointed out that while homeprices are on the rise, the emotionalvalue that people invest in housing isnot as strong as in the pre-bubble era.
“People aren’t as impressed byhomes anymore after they saw howthey collapsed in price with the finan-cial crisis,” he continued. “So it’s notsuch a clear case. I don’t think peopleare as impressed by big McMansionsanymore as they used to be.”
Nonetheless, Shiller did not recom-mend that people forego housing as aninvestment.
“The other thing about housing isthat if you put yourself into a mortgageand you pay it off, you’re putting your-self into a saving program,” he stressed.“A lot of people don’t save outside ofsome kind of a discipline device likethat. So in that sense housing is a goodinvestment.”
The latest S&P/Case-Shiller HomePrice Index U.S. National Home PriceIndex recorded a 5.4 percent annualincrease in January, while the 10-CityComposite showed a 5.1 percent gainfor the year and the 20-City Composite’syear-over-year gain was 5.7 percent.David M. Blitzer, managing director andchairman of the Index Committee atS&P Dow Jones Indices, warned that if“home prices continue to climb at morethan twice the rate of inflation, the lowinventory of homes for sale—currentlyabout a five month supply—meansthat would-be sellers seeking to trade-up are having a hard time finding anew, larger home.”
Investment Home Sales Soar in 2015
If new data was any indication, 2015was the “Year of the Investment Home,”with the sector experiencing its firstsales rise in five years. However, lastyear was also an uncommonly dismalperiod of vacation home sales, with anacute decline in volume.
According to new data from theNational Association of Realtors (NAR),investment home sales saw a seven per-cent surge last year to an estimated1.09 million, up from 1.02 million in2014. Owner-occupied purchases tookan upward turn by 15.9 percent to 3.74
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Industry Updates: April 2016
SPONSORED ED ITORIAL
By Gavin T. Ales
FHA Corrects Incorrect Maximum LTV Factor for 203(k) LoansPursuant to FHA INFO #16-17, dated March 17, 2016, theFHA corrected an error that appeared in the Single Family
Housing Policy Handbook 4000.1 (SF Handbook) related to an incorrectMaximum LTV Factor at Step 3.F, Determining Loan-To-Value Factor forMaximum Mortgage Eligibility, for the Standard 203(k) Purchase Programand Limited 203(k) Purchase Program. For Standard 203(k) and Limited203(k) purchases with a Minimum Decision Credit Score (MDCS) at or above580, and for No Credit Score with Manual Underwriting, the correct Max-imum LTV factor is 96.5 percent.
Updated Form: HUD/VA Addendum to URLA (Form 92900-A)In FHA Info #16-16, the Federal Housing Administration (FHA) recentlypublished the final version of the revised HUD/VA Addendum to the Uni-form Residential Loan Application (Form 92900-A). This updated form iseffective for all FHA Case Numbers assigned on or after Aug. 1, 2016. Notethat the revised version of the HUD/VA Addendum may not be used untilits effective date.
FHA Announces SF Handbook as Single Source for Single FamilyHousing Title II MortgagesPursuant to FHA INFO #16-15, dated March 14, 2016, the FHA announcedsignificant updates to its Single Family Housing Policy Handbook 4000.1(SF Handbook), making it an end-to-end source for almost all Single FamilyHousing Title II forward mortgage policy. The SF Handbook may now beused as a single source of Single Family Housing policy for: (1) Obtainingand maintaining FHA approval; (2) Originating almost all Title II forwardmortgage products and programs; (3) Obtaining an FHA insurance en-dorsement; (4) Performing servicing and loss mitigation functions on FHA-insured mortgages; and (5) Understanding and applying quality controlpractices.
Fannie Mae Issues Selling Guide Announcement SEL-2016-02Fannie Mae issued Selling Guide Announcement SEL-2016-02 to announceupdates to the following: (1) Continuity of obligation; (2) Lender self-reportobligations; (3) Indemnification for losses; (4) HomeStyle Renovation mort-gage recourse obligations; (5) Definition of Relocation Loan; (6) Miscella-neous Selling Guide updates; (7) Revisions to the Pennsylvania securityinstrument and new notes; (8) Updates to the Special Feature Codes list;and (9) Publication of Fillable Rental Income worksheets. To view SEL-2016-02 and the Executive Overview of Selling Guide Updates, please ac-cess Fannie Mae’s Web site.
Updated Forms: Pennsylvania Mortgage and NotesAs announced in Selling Guide Announcement SEL-2016-02, dated Feb.23, 2016, Fannie Mae and Freddie Mac have updated the PennsylvaniaMortgage (Form 3039) and created state-specific notes for Pennsylvaniaas a result of recent judicial decisions. The updated security instrumentsand notes have been posted on Fannie Mae's Web site. While lenders maybegin using these updated forms immediately, use of these forms ismandatory, beginning Aug. 1, 2016.
Gavin T. Ales is chief compliance officer with Torrance, Calif.-based DocMagicInc. He may be reached by phone at (800) 649-1362, ext. 6446 or [email protected].
� nmp news flashcontinued from page 15
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SPONSORED ED ITORIAL
By Andrew Liput
In honor of the upcoming baseball season, I am republish-ing a column I wrote for National Mortgage ProfessionalMagazine back in March of 2014. I hope you enjoy it!
Spring is in the air, and for sports enthusiasts like me,that means one thing: Spring training and the start of yet another baseballseason. As I check out the Florida box scores, I cannot help but find someparallels between our National Pastime and the current state of the mort-gage industry.
l With the current down market, many lenders have thrown in the towel,and instead, are saying “Wait ‘til next year!” As the Brooklyn Dodgersfound out time and time again (except for in 1955), a team that is fo-cused on the future and not the present usually ends up on the losingside of the scoreboard. The Yankees beat the Dodgers nearly every yearfrom 1947-1956 because their focus was “This IS next year!” Lenderswho are focused on growth and success despite a down market are find-ing it. Those who are just waiting it out until next season may find thatwhen the time comes they will not be fielding a team.
l Casey Stengel, who led the Yankees to 10 pennants and who was sad-dled with managing the famously inept 1962 Mets, was known for hismuddled language. Reporters often scratched their heads trying to un-derstand his point, and as a result Casey became the story which oftentook the heat off of his players. The regulators in D.C. appear to bespeaking in “Stengelese” these days. Thousands of pages of regulatoryrequirements that meander from topic to topic and leave lenders whonow are responsible for implementing them thinking: “What in theworld does that mean?”
l Attitude is everything in life. Chicago Cubs star Ernie Banks loved base-ball. He knew he was privileged to be paid doing something he reallyenjoyed, and when he arrived at Wrigley Field for a day game wouldoften say, “Let’s play two!” I’ve noticed that those MLOs who really lovewhat they do, who see their role as consumer-oriented and not just an-other way to make money, find success no matter how tight the marketmight be. They show up for work every day and instead of saying, “Howam I going to get business,” say “I’m going to close two!”
l Stan Musial was one of the most gifted and respected players of histime. When he arrived at the ballpark, he would say, “I think I’ll getthree hits today,” however, he was not a stat hog. Near the end of hisa career, he had to be told by a fan that he was approaching 3,000 hits.Musial was a team player first. He had a notorious workout regime (rarefor that time), supported his teammates and encouraged preparation.Today, lenders need to encourage more teamwork and to take the ap-propriate steps to prepare for a new consumer- and compliance-fo-cused marketplace.
With the spring season here and everyone thawed from winter’s deepfreeze, the industry is poised to see higher originations and closed loanvolume. As volume increases in a risky purchase market, it will benefitforward-thinking lenders to incorporate more risk management and qual-ity control steps to avoid the type of fraud and defective loans that markedthe last purchase boom from 2002-2008. As Yogi Berra reportedly said,"It's like deja vu all over again!”
Play ball!
Andrew Liput is CEO of Secure Insight, a risk analytics firm offering vendormanagement services addressing settlement agent risk. He can be reachedby e-mail at [email protected].
Casey Stengel, Ernie Banks, Stan Musial … and Compliance?
�
“We have been working on this proj-ect for over two years and to see it final-ly coming to production is extremelyexciting,” said Nelson Haws, presidentand chief executive officer of ResMac.“Our goal as a company is to continual-ly improve our service levels for our cus-tomers and we think this new releasewill set us apart from our competition.”
Wolters Kluwer PartnersWith eOriginal
Wolters Kluwer has announced that ithas teamed with eOriginal Inc., aprovider of digital transaction manage-ment (DTM) solutions, to add eVaultingand eClosing capabilities to its Experedynamic document solution to deliverend-to-end eClosing functionality for itsbanking customers. The integration willallow Expere users to utilize eOriginal’sextensible, plug and play digital mort-gage platform.
The integration of eOriginal withExpere will also enhance the solution’selectronic delivery and mortgage loandocument management capabilitiesthroughout the mortgage lendingprocess, including securitization toeither a MERS or non-MERS buyer.Additionally, the integration will givelenders more flexibility in meeting therequirements of TILA-RESPA IntegratedDisclosure (TRID) and the opportunityto better serve customers based on theirpreferences.
“More consumers today are lookingfor the flexibility to execute their mort-gage loan documents electronically,”said Stephen Bisbee, president and CEOof eOriginal. “It gives them the freedomto review the documents at their ownpace with their own devices. By inte-grating eOriginal’s Digital MortgagePlatform with Wolters Kluwer’s Experedynamic document solution, we willmake it possible for thousands oflenders to offer eClosing capabilities totheir customers. eOriginal’s platform isan extension of the highest volumeecontracting platform in the marketand vetted by all the parties on thebackend of securitization includinginvestors, rating agencies and issuerscounsel.”
The Expere engine is used by morethan 2,000 financial institutions, includ-ing five of the top 10 U.S. banks and 60percent of the top 30 banks to generateaccurate and compliant loan docu-ments across all 51 U.S. jurisdictions.The dynamic content library is main-tained and warranted by WoltersKluwer to help lenders meet the com-pliance requirements of today’s contin-ually evolving regulatory changes.Through the combined solution,lenders will have access to WoltersKluwer’s industry leading compliancecontent and eOriginal’s industry leading
encryption and security protocols,including tamper seals, data integritychecks, audit trail, access rights andsecure storage.
“Our collaboration with eOriginalwill provide a tremendous value to ourExpere customers, enabling them toleverage this combined functionality todevelop an eClosing workflow thatmeets new strategic digital bankingstrategies,” said Steve Meirink, execu-tive vice president and general manag-er of Compliance Solutions at WoltersKluwer. “The integration will stream-line the entire digital transaction man-agement process for our customers,from compliance to the digital securitymeasures and protocols needed tomake the transition, giving them atremendous competitive advantage.”
Indecomm GlobalServices Launches Web-Based Platform for Self-Employed Borrowers
Indecomm Global Services has added toits suite of proprietary Software as aService (SaaS) platforms by launchingIncomeAnalyzer, a Web-based platformthat electronically reads and analyzesdata, calculates qualifying income asso-ciated with the mortgage loan, andalerts the lender to underwriting condi-tions. Agency income documentationand calculation messages are clearlyand visually presented to users, provid-ing a consistent methodology for thesuccessful approval of loans.
“Indecomm’s Income Analyzer is adisruptive technology designed torelieve the industry of a very error-prone and manual process,” said RajanNair, CEO of Financial Services,Indecomm Global Services. “IncomeAnalyzer addresses a primary reason forrepurchase demands and errors todayand also provides consistency and clari-ty into income calculations and deci-sion-making. The goal is to delivererror-free files for servicing or sale andsee the value on the bottom line.IncomeAnalyzer is an intelligent systemdriven by sophisticated OCR technolo-gies and an interactive user interface.Its logic is triggered by the informationwithin the borrower’s income docu-ments. This will help our clients origi-nate more loans at lower cost.”
Income Analyzer allows lenders tosystematically document compliancerelated to qualifying income throughstandardization of the math and under-writing conditions. This can reduceexposure to inconsistent handling ofincome that, in turn, can lead to fairlending problems. Income Analyzerstores the audit trail of all changes
new to marketcontinued from page 12
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Western Region Sean Gerrity
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[email protected](832) 317-3931
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Now What Can We Do?NAMB—The Associationof Mortgage Professionalshas just concluded its2016 Legislative &
Regulatory Conference. NAMB Nationalisn’t until September … so what canloan originators do now?
First off, if you are not a member ofNAMB, visit NAMB.org and join now.
If you are a member of the associa-tion, either you or your state leadershipprobably attended the LegislativeConference and spoke with your repre-sentatives and senators in D.C. and toldthem of the need to support and passHB 3393 and its companion Senate bill.Now you need to set up appointmentsin the local offices of these legislators
and introduce yourself to them person-ally to ask for support of these initia-tives. Send them e-mails remindingthem of the need to support these billsand your availability to answer anyquestions they might have. If you arenot comfortable answering their ques-tions, please contact members ofNAMB’s Government Affairs team forassistance. Valerie Saunders chairs thiscommittee and is always available toanswer calls and e-mails. She may bereached by phone at (866) 992-0785 ore-mail [email protected].
The election season is rapidlyapproaching, and if you have a candi-date whom you would like NAMBPAC tofinancially support, e-mail John Stevensat [email protected] and makea request. He has forms available to
make a request and NAMBPAC willreview and decide how to best allocateour somewhat limited PAC funds. Evenbetter, why not ask him how you canraise funds locally to go into the PACand support more candidates whounderstand NAMB’s positions andneeds?
Nominations for your board are open,and NAMB needs more individuals nom-inated. Please visit NAMB’s bylaws andpolicies to determine qualifications. Forthe board of directors, you must typicallybe a Professional Member of the associa-tion and have served on Delegate Councilfor two years.
Continuing education season willbegin shortly, so now is a good time toget started on your Certified ResidentialMortgage Specialist (CRMS) or CertifiedMortgage Consultant (CMC) certification.There is a test prep class available andqualification information on NAMB.orgas well.
Join American Homeowners Alliance
and get a free one-year membership asa closing gift to your borrowers. Itallows them representation inWashington, D.C., as well as e-bates anddiscounts on their online purchases.
Finally, visit the Infosight Web pageunder education on NAMB.org for linksto cyber security training and tools tomake your company and borrowersinformation more secure while meetingyour CFPB requirements.
So keep originating loans, helpingborrowers and choosing some of theabove to further your career and pro-fession. Helping people accomplish theAmerican dream of homeownership is anoble and satisfying profession to bepart of.
Sincerely,
Rocke Andrews, CMC, CRMS, PresidentNAMB—The Association of [email protected]
The President’s Message: April 2016
N A M B P E R S P E C T I V E
The CEO PerspectiveA Message From NAMB CEO Donald J. Frommeyer, CRMS
Have you ever wonderedwhat NAMB’s board ofdirectors really does foryou? Do you think thatbecause it is a volunteerposition, that everyone
just sits around and does nothing? Well,I am going to let you in on a littlesecret. All of the board members fromNAMB, from President Rocke Andrews,to the newly elected directors, all havefull-time regular jobs. In addition, theyserve on the board of NAMB for noincome.
Take for instance your president, RockeAndrews from the state of Arizona. Rockeworks a full-time job to pay the bills. Heputs in his eight-plus hours every dayworking for his employer. He also multi-tasks by attending meetings, giving inter-views, writing articles, answering ques-tions from the NAMB membership, andoverseeing the day-to-day activities of theassociation. He works together with me asNAMB CEO, and with Harry Dinham,NAMB’s COO, on keeping everything run-ning smoothly and on time.
You have Linda McCoy from
Alabama, who served as NAMB EastCommittee Chair for our visit to HiltonHead, S.C. last month. She not onlyworks at her mortgage company, butshe devoted hours upon hours to mak-ing sure all of the details of NAMB Eastwere completed and that the eventcame off without a hitch.
Now I have not pointed out thesetwo people specifically, but am trying tomake a point. Your association is madeup of great people who give of theirpersonal and professional time to see-ing the growth and continued success ofNAMB. Every board member is like this.We give not only of ourselves, but of ourtime and effort to make your associa-tion the best for you and your co-work-ers. It is a passion and something we dofor the good of our industry. We don’tcharge thousands of dollars in member-
ship fees or thousands of dollars to goto our conferences. We feel that, as amember, you should get some perks.And that is why we don’t charge you agreat deal of money to attend ourevents and not a lot of money to belongto the association.
We are a very efficient group of peo-ple dedicated to working for you toachieve an end result of having youbecome a member. Lord knows that weare not going to become a rich associa-tion charging you less than $10 permonth to become a member. So myquestion to you is this: Why haven’t youand your friends joined?
Donald J. Frommeyer, CRMS is chief execu-tive officer for NAMB—The Association ofMortgage Professional. He may be reachedby e-mail at [email protected].
Our MembershipMatters
By Kimber White
As I prepare to attend the2016 NAMB Legislative &Regulatory Conference inWashington, D.C. and
lobby with my peers for our legislativeconcerns, I think back to my first con-ference and involvement with NAMB.
It was the year 2012, and I had justbecame involved with my local andstate trade association in Florida. I had
been in the mortgage industry for 24years at the time, but had never joinedmy association, although I was alwaysthe first to complain about issues andfire off e-mails, but not participate. Ihad friends or colleagues in the indus-try who were members and they sharedinformation with me so I really saw noreason to join.
One day, I was invited to a localRealtor/mortgage networking meetinghosted by local mortgage association. I
wanted to get Realtor business, so ofcourse I was going to take advantage ofthe invite. While there, I met a mort-gage professional who I highly respect-ed. I got into a conversation with himabout all of the RESPA changes and ourFlorida laws, voicing my opinion andthoughts. He intently listened and saidthat he agreed with me then asked meone question: “Are you a memberKimber?” I said no, I really do not havethe time as I am a one-man shop so it ishard.
His next response was, “Kimber,you have aired your concerns for over20 minutes. I understand that yourbusiness can take up your time, but ifyou do not take the time to invest inyour profession by at the very least
being a member and having a vestedinterest, then do not complain if theday comes and you cannot operateyour business.”
I looked at him, and without hesita-tion, said, “Point me to the member-ship person.” I joined on the spot.
Since that day, I have becomeincreasingly involved with my local,state and national trade association tobetter our industry. One thing I did notexpect when I joined was the friendshipand business relationships with fellowmortgage professionals that have grownall over this country. I also receive dis-counted education, government affairupdates, additional members-only ben-efits, and I am counted in the mortgageprofession by being a member.
He currently serves on the ExecutiveCommittee of the Florida AssociationMortgage Professionals (FAMP) asTreasurer and serves nationally on theNAMB board of directors as MembershipCommittee chair for NAMB.
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N A M B P E R S P E C T I V EI understand that not everyone can
get involved and take on the level ofservice that I or someone else can, buteveryone can afford $120 a year toinvest into your business by joiningNAMB and supporting your livelihood
for just $10 a month that supports youin your business.
As we all know, there is strength innumbers, and all of us together canmake an impact for the betterment ofour industry as a whole. We need you as
a member. Please go to NAMB.org andjoin today. Together our membershipmatters.
Kimber White is a partner at REFinancial Services in Oakland Park, Fla.
Are Leaders Born or Created?
By David Luna,CRMS
“Management is doingthings right. Leadership isdoing the right things.”—
Peter Drucker (1909-2005)I believe that leaders are made, notborn. They are those people aroundus who, as kids, we followed and theymay not have known that they wereborn leaders. Why would we as kidshave followed someone and notknown why? Why would we havewanted to be on a team if that leaderwas on the same team too? Why didwe think our chances were better atwinning because of our captain,teammate or leader? Do you believethat there are leaders who don’t evenknow they are leaders? I say we fol-low someone as our leader for vari-ous reasons.
A definition of “Leadership” couldbe the ability to influence people tomove toward a common goal. How tomotivate people has been the objec-tive for many movies, books and col-lege courses.
In an Inc. 500 CEO survey based ondata from the Inc. 5000, a list of thefastest-growing private companies inthe U.S.1 They found (based on theirsurvey) that leaders characterizedtheir leadership style as Visionary (66percent), Democratic (18 percent),Servant (12 percent), Autocratic (threepercent) and Hands Off (one percent).However, when asked: “How do youthink your employees view you?”Their answers were different. Again,Visionary scored very high at 53 per-cent, but the rest were very different.Tough (but fair) came in at 22 percent,Motivational at 16 percent,Benevolent at seven percent andSympathetic at two percent.
Leadership can be broken downinto characteristics such as: Integrity,self-confidence, decision-making abil-ity, knowledge, drive, diplomacy, pop-ularity, cooperation skills and more.
There is, however, a differencebetween leadership and manage-ment. The business leader will createa vision, while the manager works
towards that vision within the com-pany structure. The leader is pas-sionate the manager’s rational. Theleader is creative, while the manag-er is analytical. The leader will beimaginative the manager will bestabilizing.
There are many different types ofleaders if we look at DanielGoleman’s work2, he states that thereare: Visionary, Coaching, Affiliative,Democratic, Pace-Setting andCommanding Leaders.
The group “Linked 2 Leadership”is a group on LinkedIn.3 When askedthe question of Management vs.Leadership, the group responded:
l Leadership is working on thesystem Management is workingin the system (M. AlZoubi).
l A leader gets things done byholding a vision, modelingbehaviors and inspiring action. Amanager gets things done viaplanning and delegation (S.Slater).
l Management is about ensuring aprocess is delivered efficientlyand leadership is aboutinfluencing change (S. Chapple).
l Leadership is vision andmanagement is goals (D.Sandusky).
l Leadership focuses more on thepeople side of the business,while management is moreabout systems and processes (D.Slayton).
l A leader needs to know whetherhis vision is achievable, andworks with the managers toensure they can reach it (R.G.Smith).
l People have to work formanagers whereas people wantto work with leaders (R. Jindani).
The book by J.P. Kotter on WhatLeaders Really Do is a collection of hisacclaimed Harvard Business Reviewarticles. His thoughts could besummed up as “Leaders lead people,managers manage tasks, work andprocesses.”
In the mortgage industry, there
are many leaders and this is not sub-ject to age. I know a person with sev-eral degrees, with all of the correctmortgage skills and has been in thisindustry for 30 years. Yet, this personis not a great leader. I also know sev-eral young people who have the abil-ity to have great people attracted tothem. Therefore, I do not believe ageis relevant to whether someone is agreat leader. A leader is someonewho cares about their people andwill do what is right no matter what.
In another Inc. Magazine article,4 itfound that you may be a leader if:
1. You have an open mind and seekout other people’s opinions.
2. You find yourself giving adviceand counsel.
3. People count on you.4. You’re a good listener and people
confide in you.5. Others follow your example.6. You insist on excellence.7. You have a positive attitude.8. You treat people with respect.9. You genuinely care about others.10.You are confident and passionate.
Can leadership be learned? Ibelieve that it may be started at anearly age by parents, teachers, coach-es, etc. Surrounded by those whotruly care for these early leaders,leaders are made. Can we becomeleaders? I believe that it depends onwhat your skillset is. Are you happi-est and more comfortable in gettingthings to work well or is there a bet-ter, faster way. Can you do things ina manner that can excite other peo-ple or are you happy to do things thesame way they have always beendone?
I remember a story about a younghusband coming home to find hiswife cooking a roast. When heinquired why she had cut the ends ofthe roast she answered, “That’s theway my mom did it.” Not completelysatisfied with the answer, he askedhis mother-in-law why she cut the
ends off of her roasts. She answered,“That’s the way my mom did it!”Finally, he went to grandmother-in-law and asked, “Why do you cut theends off of the roasts?” Finally, hereceived a different answer, shereplied, “Because my pan is tooshort.”
Are we doing things “that way”because things have always beendone that way (manager) or is there abetter way? Leaders will find new,innovative and better ways of lookingat this wonderful business we call themortgage profession.
We had the NMLS in our office afew weeks ago. Hopefully, as our com-pany’s leader, I am doing things right.We were told that we are highlyranked as a school, and if the trendcontinues and we accomplish some ofour goals, we could be ranked evenhigher. Is this true of me as a leaderor of the fantastic people in my com-pany? I think it’s both the vision andhighly motivated, intelligent people Iget to associate with on a daily basiswho are driving us forward as webreak all of our previous records (ourmeasure of performance). We aregrowing at a rate of 25-30 percent peryear and have done so for the last fiveconsecutive years.
Hopefully you can be that kid thatothers will want to follow. Hopefullyyou will be that company others willwant to work with. Hopefully yourtime as a leader has begun or you arenow ready for the next chapter inyour career. Whatever the motivation,leaders can be made. Leadership canbe learned and the benefits will beshared with your entire organization,big or small.
David Luna, CRMS, president ofMortgage Educators and Compliance,an NMLS-approved education provider,is a member of the board of directors ofNAMB—The Association of MortgageProfessionals. He can be reached byphone at (801) 676-2520 or [email protected].
Footnotes1—The Leadership Style that Builds High-Growth Companies By Jill Krasny, Dec. 24,2014.2—Goleman, Daniel, “Leadership that Gets Results,” Harvard Business Review,March-April 2000, p. 82-83.3—LinkedIn is a trademark of LinkedIn Corporation, Mountain View, Calif., USA.4—10 Signs You Really Are a Leader (and Might Not Know It) By Lolly Daskal, pub-lished April 4, 2016.
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Legislative & RegulatoryConference recently held inD.C., with three full days ofeducation, information andlobbying for our members. Andwe started a monthly Webinarseries last July that focuses ondifferent topics of use to theindustry: TRID, 203k, loan officercompensations, MSRs, etc. InMay, the Webinar will focus onFannie Mae’s HomeReady andHome Possible programs. Wehave also set up a legislativeadvocacy page that includesimmediate calls to action on billsthat are either harmful orbeneficial to the mortgageindustry.
What do you see as thecurrent state of the mortgageprofession?I believe that this is the year ofthe mortgage broker. Theindustry is poised to serve ourcountry’s consumers in a betterway. The federal governmentand the state governments seethe importance of smallbusiness within a communityserving consumers directly.
Valerie Saunders is one ofthe most prominent figuresin today’s mortgage
profession. She is the presidentof Jacksonville, Fla.-based TitleClearingHouse, is the immediatepast president of the FloridaAssociation of MortgageProfessionals (FAMP) and adirector with NAMB—TheAssociation of MortgageProfessionals.
National Mortgage ProfessionalMagazine spoke with Saundersregarding her career in themortgage industry and her workwith the state and national tradegroups.
How did you first get into themortgage profession? Was thisyour original career choice?No, it was definitely not myoriginal career choice! I wasworking on my master’s degreein historical administration, and Ilooked for a temp job—and Ihappened to get one in themortgage industry. When I gotmy master’s degree, the jobs fellout of the arts field, so I stayedwith mortgages.
When did you receive yourmaster’s?In 1991, from Eastern IllinoisUniversity.
How did you first becomeinvolved with the FloridaAssociation of MortgageProfessionals (FAMP)? I moved to Florida from Illinois towork at a title company. I startedattending FAMP ChapterMeetings in order to startnetworking and gather newbusiness. By 2007, I was part ofthe Executive Committee of thestate association. From there, Iwent on to become treasurer andwas later president-elect. KathyLove, our incoming president atthe time, passed away. RickWorkman, then past president,took her place, but was thenelected to the Florida House ofRepresentatives. He resigned andI went into the president’s role.
How did you first get involvedwith NAMB?Before I became FAMP president,Florida had broken away from thenational association. I spent a lot
of time getting the state andnational associations backtogether. Since 2011, I havebeen a NAMB director.
Are you still involved withFAMP?I am president of the FAMPEducation Foundation, whichprimarily handles the oversightof instructional courses andeducational seminars providedvia NMLS-approved courseinstructors. We also doconsumer education—we usedto do a lot more, and we arenow getting back into it.
What are some of yourresponsibilities with NAMB?Currently, I am co-chair of theGovernment Affairs Committee.We have been focusing on HR3393, The Mortgage FairnessAct, and trying to get co-sponsors in the House and onthe Senate companion bill. Weare working to educate themembership on the importanceof HR 3393 and its impact onmortgage brokers.
We also put together the 2016
N A M B P E R S P E C T I V EgettingknowtoValerie Saunders
Director of NAMBB Y P H I L H A L L
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N A M B P E R S P E C T I V EMany people in the industryhave been concerned thatyoung people are notgravitating to the mortgageprofession. What can be doneto attract more young peopleto careers in the mortgageprofession?Unfortunately, the economicdownturn and its effects on themortgage industry resulted inyoung people watching theirparents struggle. Many of themsaid, “I’m not going to do that …I don’t want that to happen tome.” But as the industry turns acorner, more people are comingout of college and are seeing thatwe’ve come back. We have to letthe Millennials know that themortgage profession is a safeand secure industry to go into.Unlike many industries, we havedirect contact with consumersand our professionals get to seethe fruits of their labors.
What is the current state of thehousing market like in Florida?Florida is definitely on therebound. The South Florida areawas the first in the state to be hitthe hardest, but now it is a hotmarket. Home values are on therise, and according to a FreddieMac study, some of the hottestareas in the country are in SouthFlorida. The Northern region ofFlorida is recovering as well.
What is the biggest challengefacing your business today?Our biggest challenge is trying tohire new loan officers. We wantto expand our footprint and areputting a focus on hiring youngerloan officers that we canappropriately train. But findingthe right people that would wellwith us has been a greatchallenge.
What are some of your near-term goals?I am still working to be the best Icould possibly be on a nationallevel. Whatever task I’m given, Iwill give 150 percent. I am alsoeager to expand my business. Iwant to open another branch andtake on a couple of more loanofficers.
You are more than a little busy
with your work. How do youspend your leisure time?I have two kids—one is a juniorin college and the other is asenior in high school. Our familyloves Disney World and we aregoing on a Disney cruise thissummer. I am also a softballcoach with the local middleschool and president of the localsoftball association. I spend a lot
of time cultivating youth athletics.
And did you ever find aprofessional outlet for youroriginal career goals?I have a BA in history, and when Iwas first out of college, I had ajob at the National Archives in St.Louis. After my master’s, Iworked at a convent and did amuseum-quality exhibition within
the Mother House. But since Imoved to Florida, I’ve not beenable to utilize that aspect of myeducation. But I still love historyand love going to museums.
Phil Hall is managing editor ofNational Mortgage ProfessionalMagazine. He may be reached bye-mail [email protected].
BARRY HABIB—THE ORIGINATOR OF THE MARKET ADVISORY SERVICE
Daily guidance and insights from Mort-gage Market expert Barry Habib. He closedover $2 Billion in production as a LoanOriginator, called the bottom of the Hous-ing Market and currently provides sales
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Step Inside Ginnie Mae
By Ted W. Tozer
The housing finance industry is continuing to evolve, and dur-ing this evolution, the role of Ginnie Mae is more critical thanever. In recent months, Ginnie Mae has become the first sourceof new mortgage-backed securities (MBS) with one-third of the
overall market share, and we are rapidly closing in on $1.7 trillion in out-standing Ginnie Mae securities. This is important since we are committed tobringing our program to as many people as possible.
New Issuers and new borrowers coming into the Ginnie Mae program areopening up the credit access box. Ginnie Mae’s Issuer composition is almostcompletely opposite from six years ago.
Now, only one Issuer in Ginnie Mae’s top five is a traditional depositoryinstitution. Independent mortgage bankers are critical to sustaining con-sumer access to government-insured mortgages and insuring credit access forall.
Given this new market reality, Ginnie Mae is committed to ensuring thesuccess of our Issuers as well as bringing our program to as many people aspossible.
Ted W. Tozer is was sworn in as president of Ginnie Mae on Feb. 24, 2010, bring-ing with him more than 30 years of experience in the mortgage, banking andsecurities industries. As president of Ginnie Mae, Tozer actively manages GinnieMae’s $1.5 trillion portfolio of mortgage-backed securities (MBS) and more than$460 billion in annual issuance.
New Market Reality
made during the process, allowinglenders access to all layers of analysis nec-essary to resolve quality control, investor,or agency inquiries.
“Our business process outsourcingteams have processed and underwrittenover one million loans during the last 10years,” said Rachael Harris, director ofProduct Development–Income Analyzer,Indecomm Global Services. “We knowhow disruptive complex tax returns canbe to the flow of a loan. We designedIncome Analyzer to improve the overallquality management strategy by provid-ing expertise early in the process.”
Income Analyzer is easily integratedinto any workflow and can be customizedto meet an array of underwriting stan-dards. The proprietary OCR technologyand rules based engine is capable of han-dling complex files with multiple subsetsof income documents. Stream-by-steamfunctionality allows for qualifying on anycombination of income types and pro-duces a cash flow analysis in any form,including Fannie Mae, Freddie Mac andproprietary formats.
ALTA Launches On-Demand Print Shop
The American Land TitleAssociation (ALTA) haslaunched a new on-demand print service aspart of its HomebuyerOutreach Program(HOP). ALTA’s Home-
buyer Outreach Program provides mem-bers access to exclusive resources tohelp educate homebuyers about the
benefits of purchasing an owner’s titleinsurance policy. The HOP Print Shopallows ALTA members to easily cus-tomize more than 60 HOP resources,download modified digital files for freeor order discounted print products foruse in their local market.
“As the busy spring homebuying sea-son begins, it’s important for ALTAmembers to clearly and simply commu-nicate the benefits of title insurance toconsumers,” said Michelle Korsmo,ALTA’s chief executive officer. “We areexcited to offer this new print service tosave our members time and money,while increasing their consumer educa-tion efforts. For many consumers, buy-ing a home is the single largest invest-ment they will make in their lifetime.Every homebuyer deserves easy-to-understand information on how to helpprotect their property rights.”
Your turnNational Mortgage ProfessionalMagazine invites you to submit anyinformation promoting new “niche”loan programs, new products or anyother announcement related to theintroduction of a new program, to theattention of:
New to Market columnPhone #: (516) 409-5555
E-mail:[email protected]
Note: Submissions sent via e-mail are pre-ferred. The deadline for submissions is the1st of the month prior to the target issue.
new to marketcontinued from page 18
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NAMB+ is an independent, wholly-owned, for-profit marketing subsidiary of NAMB, The Association of Mortgage Professionals.
Go to BestMLOs.com to start learning from the best.NAMB members enter NAMB Member Coupon Code:NAMB15
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As an NAMB member, Birchwood Credit Services willwaive the sign up fees! It’s a “NO RISK” way toexperience the Birchwood difference firsthand!
NAMB members receive a discount off Brokers Compliance Group compliance support programs.
NAMB members receive a 15% discount on allCustom Canvas Prints products and services!
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LoanTek’s platform is designed to save time, createbetter leads, and convert leads into new business.
NAMB members get a $300 discount on coaching.NAMB members receive exclusive discounts trainingevents, including live seminars and internet-basedweb shops
MBS Highway provides daily guidance and insightsfrom Mortgage Market expert Barry Habib whopredicted the bottom of the Housing Market. Exclusive NAMB Members offer to try MBS HighwayFREE for 30 days. VisitMBSHighway.com/registration/namb-plus-registration
Morf Playbook™ by Morf Media is software that allows youto train your staff and customers. You can create your owntraining, add your policies and procedures or select coursesfrom the Morf Partner Portal. Whether you are looking forCFPB compliance training, sales training or new loan officertraining, Morf can connect you with exactly the training youneed. If you can write about it, record a video about it or talkabout it…YOU can train on it with the Morf Playbook™! Findout more at www.morfmedia.com/namb.
Mortgage Currentcy is a subscription-based ezine thatinterprets the mortgage underwriting and compliancerules in plain, easy-to-understand language and howthey affect your files in process. NAMB Members save$70 on annual subscription option. Visit the Websiteat www.mortgagecurrentcy.com/tour.php
NAMB Members will receive a Twenty-Five Percent(25%) discount off of the regular price with their NAMBMembership.
Simplii VOIP business phone solutions include all thefeatures and functionality of a high end business phonesystem without the high costs. We offer all NAMBmembers a 10% discount off their phone services. Formore information please e-mail [email protected]
If you want a social and mobile marketing strategythat gets noticed contact Social5 today for a FREEconsultation and demo and to receive your NAMBmember discount pricing .
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NAMB members get special pricing plus 1 monthFREE.
The Bond Exchange is a national surety agencyspecializing in providing mortgage license bonds tothousands of mortgage professionals across thecountry.
USA Business Lending is the nation’s premiercommercial brokerage firm representing over 3500lenders.
NAMB members receive a 10% discount off regularprices for Warm Welcome LLC services. For moreinformation visit WarmWelcomeLLC.com.
WhoHub (www.whohubapp.com) is a FREE marketing toolfor local Realtors to refer their best Loan Officer. The service isFREE for the agent and their clients so it gets shared amonglocal friends, family and neighbors who will see your profile.Each loan officer pays just $30/month for unlimited agentconnections. Whether you connect to 1, 15 or 100 agents –still just $30/month. That’s right; one new borrower pays forthe service for years! NAMB members get their first 90 daysfor just $1, month to month thereafter, cancel anytime.
Dear Mortgage Professional, Did you know that you can connect with NAMB+ through socialmedia? Find us on Facebook, Twitter, Instagram, Pinterest andGoogle+.
We love to post and share information about our Endorsed Providersand the amazing products and services that they offer. We also share
information on special money-saving discounts that our Endorsed Providers makeavailable exclusively through NAMB+. If you’re not connected with NAMB+ you aredefinitely missing out!
NAMB+ wants to connect with you on social media as well. We invite you to shareyour experiences working with our Endorsed Providers, and don’t forget to tag us andyour favorite NAMB+ Endorsed Provider when you post!
Finally, if you are a company that would like to explore becoming a NAMB+
Endorsed Provider, please feel free to connect with us as well. Either myself or anothermember of our Board of Directors will get back with you. We are constantly lookingfor exceptional companies to help connect with NAMB Members throughout thecountry. Sincerely,
Nathan Pierce, CRMS, CMP, PresidentNAMB+, [email protected]
See below for a complete listing of the current NAMB+ Endorsed Providersand visit NAMBPlus.com for more information.
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to NAMBPLUS.com and the many benefits NAMB
members receive!
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The NMP Daily Email Newsletter is your source for breaking news, insights and tips. Get freeaccess to full articles including the hottest industry headlines, featured articles and other mission criticalmortgage industry stories delivered to your inbox each day.
The NMP Mortgage News Ticker is a daily news feed that gives you a snapshot of the hottestmortgage news stories from around the web. Stay informed of the most recent headlines and blogs, allcompiled into one convenient daily email.
Your State Specific Digital EditionWant to stay informed on a more local level? The contents of our state e-editions include all of the content fromour national publication plus state-specific mortgage association information, including the President's Message,which highlights local issues, such as regulatory and legislative matters, along with the state calendar of events.
Mortgage News Network (MNN) features regularly scheduled and special event video programmingwith industry experts sharing insights that impact your business today and in the future. MNN providesmarket forecasts, proven sales and marketing strategies, interviews with industry leaders and more.
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Free print subscription ($59 value). Go to Sub.NMPMag.com/nmp0511
What FrustratedLoan Officers andSupermarkets Have in CommonB Y B R I A N S A C K S
My 19-year-old son isa “foodie” andloves a greatsupermarket. Hespends a great dealof time fascinated
with Whole Foods and is alwayslooking for healthy food to eat.
Now stay with me here becauseI promise this will all tie into ourproblem as loan officers.
I am, however, not fascinatedwith food or supermarkets. In fact,I will do anything I can to avoideven going into one. To me, ahead of lettuce is the sameregardless of where it comes from… it all tastes the same and for meit comes down to price.
My son would argue that theyare not the same at all. In fact, hewill spend more for organicveggies that are grown on a
mountaintop in the Andes. To me,it’s still just a head of lettuceperiod.
Do you have thesefrustrations as a loan officer?Before I tie all of this together foryou, I want to get some of thefrustrations we all share off mychest and I will share with you howI have been able to correct thissituation and help hundreds ofother originators do the same.Which of the following optionsbelow frustrate you?l Being shopped by the majority
of buyers that you meet with orhaving people just call you tomake sure the rates they werequoted are ok with no intentionof using you.
l Having to work nights andweekends 24/7/265 so that you
don’t miss an opportunitybecause it’s “so competitive”out there.
l Begging real estate agents forbusiness and having to go outwith them for coffee or lunch.Heck, it’s hard to even get themto agree and you don’t want togo anyway.
l Having your income and lifestyledependent on others to give youbusiness. So you always live onegg shells hoping things go well.
l Always feeling like you must bechasing new business. You areforced to spend money youcannot afford to spend onprograms that simply don’twork.
l Doing a great job for a realestate agent and a client andnever getting a referral oranother deal.
So … what does this have todo with supermarkets andloan officers?On the surface, maybe nothing.But when you stop and think aboutit, the dilemma is exactly the same.After all … isn’t a head of lettucethe same everywhere? An appleand a tomato are the same. Toiletpaper and cans of tuna are all thesame right?
That’s how I feel and that’s whyyou constantly see ads in thepaper for every supermarket withtheir sales and super low prices.
But what if you are Kosher?Only eat gluten-free or havesome other need?The key is specializing in a niche.My son loves Whole Foodsbecause he has many healthyalternatives at one place. Theycharge more than the othersupermarkets in town and haveraving fans.
In Baltimore, there is one hugeKosher supermarket. If you keepKosher, than this is your one-stopfor all of your food needs. Yes …they are more expensive than theother local markets that may havea Kosher section.
Now let’s apply this to ourmortgage industry
I realize this may soundcounter-intuitive, but you
should pick a nichethat you become
the obvious “Go-To-Expert: in.When you are the expert in a nicheand are able to solve a specificchallenge a buyer has you avoidthe issues above that havefrustrated us all.
l Borrowers will meet you duringyour hours since you are “TheExpert”
l They will not shop you sincethere a few alternatives.
l Real estate agents will seekyou out since you have aprogram they need that their in-house or current lender cannothelp them with.
l These buyers become ravingfans when you solve their issues.Best of all, you can promoteyourself as the expert withoutspending a single penny.
But what niche?Of course there are many nicheslike reverse mortgages,construction perms, foreign alienloans, first-time homebuyerprograms, condo loans that werenot approved, VA loans, etc.
To me, these all have a lot ofcompetition.
Boomerang buyersBut I bet you might know that thereare 7.3 million buyers who werehurt during the meltdown who arenow eligible to purchase a home.They are in every city and town,both big and small.
The best thing about this nicheis that fewer than one in 10 loanofficers in the U.S. is going afterthem. To me, that is a perfectrecipe for success. Go after aniche that few others are goingafter and become the Go-To-Expert for these buyers.
These buyers simply want to getback on their feet financially. Theywill truly appreciate and valueanyone they think can truly helpthem.
More importantly, there are waysto promote yourself as the obviousGo-To-Expert for this niche with nomonetary investment. There arenow new programs coming outthat are specifically designed toassist these buyers.
Go ahead and decide to become“The Expert for BoomerangBuyers” in your town and yourclosings and referrals will soar!
Brian Sacks is a nationally-renowned mortgage expert whohas career closing of more than 5,924 transactions for inexcess of $1 billion. He may be reached by phone at (443) 324-8424 or e-mail [email protected].
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SPONSORED ED ITORIAL
Summer is here, and there are particular items to take into consideration whenplanning your marketing strategy. Before sending out any marketing materials,spend some time thinking about what your prospects are doing. In the sum-mer months, it’s more important than ever to take your prospect’s lifestyleinto consideration before putting together your campaign. Consumers withfamilies are more likely to be on vacation during the summer months, yourmarketing efforts can be an intricate part of your growth over these months.Here’s a quick look at some effective planning techniques that can producehigher return-on-investment throughout the summer season.
To effectively plan your marketing at any time, it’s important to think aboutyour prospects and what they will be doing when they receive your marketingcollateral. Whether you market via direct mail, telemarketing or online mar-keting like SEO, Google AdWords or Internet leads, it’s important to know whatthe person might be doing when initial contact is made. Are they on vacation,at work or at home? Each of these scenarios will play out differently throughthe sales process.
Make sure you are spending time thinking through your own demographicresearch, marketing campaign and sales process. How do they fit together?Can you use a different sales approach to make the conversation easier witha smoother transition to closing?
Most importantly, what’s going to bring you the highest return-on-invest-ment (ROI) during the summer? People on vacation don’t always leave theirhomes. For this reason, direct mail marketing is a consistent provider of qual-ified interested leads all summer long. Response rates have been on the riseall year, and this summer is shaping up to produce higher response rates thanthe previous three years!
TagQuest client spotlightIan O’Connor (Ind. NMLS#: 1020018) of Capital Home Loans Inc. (Corp. NMLS#:1388956) in Cedar Knolls, N.J.(973) 607-3777, ext. 102/[email protected]
Product: Data (7,500 records per quarter)
Results: Sixteen closed loans in the first quarter and 11 applications in pro-cessing expected to close
Highlights of the campaign that work well for you …“The accuracy of the data and the near exclusive contact with the borrower, asthey are not looking into a mortgage product at that moment, allows us to getmuch softer responses from a borrower than with traditional inquiries. When wereach someone and identify that they need help with payment reduction or ratereduction they usually move quickly through the process.
“While the response rate is obviously lower than traditional lead marketing,our entire telemarketing operation has evolved to a high volume of calls, with atriage system in place for borrowers. Rather than chasing a single applicationuntil its eventual disinterested, with this data, if we do not get an immediate re-sponse, i.e. credit pull/docs out, the data is recycled and we approach them afew weeks later. TagQuest has facilitated a much lower cost of acquisition withexcellent results to date.”
Highlights of the campaign that you think would appeal to other mortgage professionals …l TagQuest is very responsive to testing different markets and approaches.l A sales team that is eager to sell products that are performing well.l Any breakdown in data accuracy analyzed by TagQuest. Data integrity is
very important to them.l Success out of the gate with a solid telemarketing team.
TagQuest Inc. is a full-service marketing firm specializing in marketing forthe mortgage industry. Call (888) 717-8980 or visit www.tagquest.com.
Get Your Best Results This Summer
�
IMAGINE • INNOVATE • SUCCEED
million last year from 3.23 million in2014–the highest level since 2007’s3.93 million mark. Investment sales in2015 remained unchanged from a yearearlier at 19 percent, and owner-occu-pied purchases increased to 65 percentfrom 60 percent in 2014.
But vacation homes took an oppo-site turn: sales for this sector droppedto an estimated 920,000 in 2015, an18.5 percent tumble from their 2014peak level of 1.13 million. On the brightside, 2015 was the second highest levelfor vacation home sales since the 1.07million mark in 2006. Vacation homesmade up 16 percent of all housing salestransactions last year, down five per-cent from a year earlier.
The two sectors shared one piece ofcommon ground with increased medi-an sales prices: The median vacationhome price was $192,000, up 28 per-cent from $150,000 in 2014, while themedian investment-home sales pricewas $143,500, up 15.3 percent from$124,500 a year ago.
Vacation home sales accounted for16 percent of all transactions in 2015–down from 2014 (21 percent), but stillthe second highest share since the sur-vey was first conducted in 2003. Theportion of investment sales remainedunchanged from a year ago at 19 per-cent, and owner-occupied purchasesincreased to 65 percent (60 percent in2014).
“Baby boomers at or near retirementcontinue to propel the demand for sec-ond homes, although headwinds soft-ened the overall volume of vacationsales last year,” said NAR ChiefEconomist Lawrence Yun. “The expand-ing pool of buyers amidst a dwindlingnumber of bargain-priced propertiesled to tighter supply and fewer salesand caused the price of vacation homesto rise. Furthermore, the turbulencethat hit the financial markets the sec-ond half of the year likely seized somewould-be buyers’ available cash.”
HUD Reaches Agreementin California Fair HousingAct Case
The U.S. Department of Housing &Urban Development (HUD) hasannounced an agreement with aCupertino, Calif.-based property man-agement company, its agents and theowners of a Santa Clara apartmentcomplex to resolve allegations they dis-criminated against applicants basedupon their national origin. HUD allegedthat the Salwasser Group Inc. (doing
business as Income Property Specialists)and property owners Gary and MaryDrieger discriminated against prospec-tive renters by refusing to acceptMexican forms of identification, whileencouraging a Canadian passport hold-er to apply for an apartment.
The Fair Housing Act prohibits dis-crimination in rental, sales or homelending transactions based on a per-son’s national origin. This includes dis-crimination based on a person’s ances-try or country of birth outside theUnited States.
“Where a person is from should notinfluence the housing options that areavailable to them,” said GustavoVelasquez, HUD Assistant Secretary forFair Housing and Equal Opportunity.“The Fair Housing Act requires propertyowners to treat everyone equally andHUD will continue to take action whenthey fail to meet that obligation.”
The case came to HUD’s attentionwhen Project Sentinel, a fair housingorganization based in Santa Clara, fileda complaint after performing fair hous-ing testing that allegedly showed thatthe owners, through the managementcompany, discriminated on the basis ofnational origin by refusing to rent, andimposing different terms and condi-tions regarding government-issuedforms of identification.
According to Project Sentinel’s com-plaint, the respondents allegedlyinformed testers who offered a Mexicanpassport and a Mexican consular identi-fication that such identification wouldnot be accepted, but encouragedtesters using a Canadian passport toapply.
Under the Conciliation Agreement,the owners and management companyagreed to pay Project Sentinel a mone-tary settlement; obtain fair housingtraining on how not to discriminate;and implement a HUD-approved non-discrimination policy. The owners andmanager also agreed to implement aHUD-approved procedure for acceptinggovernment-issued forms of identifica-tion and post a HUD-approved fairhousing poster in the public area of itsrental property.
Owners.com Survey FindsRise in HomebuyerConfidence
Owners.com recently surveyed 1,000potential homebuyers ahead of thespring real estate season, and theresults of the survey, the Owners.comConsumer Real Estate Index, found that
nmp news flashcontinued from page 16
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consumers are confident in the econo-my and their own understanding of thehomebuying process, suggesting theyare becoming more self-reliant with thehomebuying experience.
The Owners.com survey found 80percent of homebuyers are confidentthat the 2016 homebuying environ-ment will be as good as or better thanit was five years ago, and 92 percent saythat mortgage interest rates are “some-what to very important” to their deci-sion on when to buy. Sixty-nine percentof respondents gave themselves an “A”or “B” grade when it comes to under-standing the homebuying process, sug-gesting confidence in their ability toself-navigate the real estate market.
“Consumers are heading into thespring home buying season with a posi-tive outlook, according to our findings,”said Steve Udelson, president ofOwners.com. “Homebuyers also indicatea willingness to go online and handlemore elements of the real estate processthemselves in order to save time andmoney—a trend we expect to continuethis year and beyond.”
According to the survey responses con-sumers are now more inclined than everto use technology to facilitate key parts ofthe real estate transaction. Seventy-threepercent of survey respondents would useonline sites to search for properties, morethan half (53 percent) are inclined tobook home tours online, 43 percentwould consider online financing productsand 27 percent would make a purchaseoffer online.
When thinking of luxury must-haves intheir new home, 29 percent of therespondents dream of a fully-equippedsmart kitchen, with 19 percent wanting aspa bathroom. Respondents citedupgrading to a better home (33 percent),wanting to invest in real estate (25 per-cent) or relocating to a new area (24 per-cent) as the reason for their interest in ahome purchase this year.
The Owners.com Consumer RealEstate Index was conducted onlineamong a random sample of 1,000 con-sumers who are likely homebuyers in2016.
Report: Low-IncomeRenters Find MinimalHousing Choices
The national rental housing market islacking 7.2 million affordable andavailable rental units for the 10.4 mil-lion Americans with extremely lowincomes, according to a new studyreleased by the National Low IncomeHousing Coalition (NLIHC).
The data published in NLIHC’s report“The Gap: The Affordable Housing GapAnalysis 2016” shows that 75 percent ofextremely low income (ELI) renter house-
holds spend more than half of theirincome for housing, leaving them withoutinadequate funds for basic necessities andunexpected emergencies. NLIHC estimatesthat ELI renter households account for 24percent of all U.S. renter households.
Furthermore, NLIHC found 20 stateshave fewer than the national average of 31affordable and available units per every100 ELI households, with Nevada offeringthe least opportunities with 17 affordableand available rental units every 100 ELIhouseholds. No U.S. metropolitan area hasmore than 46 affordable and availableunits per 100 ELI households.
“The Gap reveals an alarming realityabout housing for extremely lowincome households,” said AndrewAurand, vice president of research at
NLIHC. “What is frustrating is the lack oftimely action to address the issue.Millions of people in America are livingin unaffordable rental homes. They areforced to cut their spending on food,transportation and health to pay rent.”
Freddie Mac: Housing isMostly Steady
The U.S. housing market remains on
solid footing in most markets, accord-ing to data released by Freddie Mac inits latest Multi-Indicator Market Index(MiMi) report.
The national MiMi value, as ofJanuary, stands at 82.7, a 0.18 percentmonthly uptick as well as a 1.46 per-cent quarterly increase and a 7.57 per-cent year-over-year growth. Thirty-fourstates and the District of Columbia reg-istered MiMi values within range oftheir benchmark averages, with theDistrict of Columbia (101.8), NorthDakota (96), Hawaii (95.6), Montana(95.1) and Utah (94.5) ranking in the topfive. Fifty-six of the top 100 metro areasalso had MiMi values within range,
continued on page 66
Tales From
credit: alphaspirit
The mortgage closing trans-action is the single largestfinancial transaction in thelives of most consumers,and it is also the riskieststage of the mortgage
process for lenders. While the vastmajority of lawyers and notaries andtitle agents are experienced, ethicaland diligent professionals, for a fewthe role of closing agent is tootempting a lure for selfish criminalintent. This column addresses thegood, the bad and the ugly!
Top industry news …l A belated congratulations is in
order for John Hollenbeck, EVPat First American Title after beingnamed new president of theAmerican Land Title Associationin January. John is a long-timeindustry fixture and a strongadvocate for title underwritersand agents. Good luck John!
l The industry was rocked by thenews that a jury awarded MountOlympus Mortgage Companymore than $25 million in a lawsuitalleging “corporate espionage”by former employee BenjaminAnderson and his new employer,Guaranteed Rate. Anderson andanother former Mount Olympusoriginator who now works forGuaranteed Rate, Brian Decker,were accused of stealing loanfiles, borrower information andother proprietary data from theIrvine, Calif.-based lender.According to the lawsuit, “Thepurpose of the scheme was todivert hundreds of MountOlympus loan customers toGuaranteed. The individualdefendants misappropriatedMount Olympus confidential andproprietary information anddirected its customers toGuaranteed.” In a transientindustry, where mortgage loanoriginators and their lenderemployers often have differingopinions on “who owns theclient,” this is a serious wake-upcall for big-time salespersonswho are seeking to jump shipand take business along withthem
l In what may be some good newsfor mortgage lenders coming outof the Consumer FinancialProtection Bureau (CFPB),mortgage complaints no longerlead the list of complaints at theAgency, having been supplantedby complaints about debtcollectors. Debts not owedaccounted for 38 percent of alldebt complaints. Other issues
raised were the frequency ofcalls—weekly, daily and even atplaces of employment, andlawsuits filed for debts that werenot actually owed or where thestatute of limitations had longpassed.
You can’t make this stuff up!This month, like every month, we fea-ture some of the latest news aboutmortgage and closing fraud affectingour industry. These are real casesfrom around the country, only thenames have been redacted to avoidthreats of frivolous legal action …
++A former attorney with theFederal Deposit InsuranceCorporation (FDIC) was sentenced to12 months and one day in prison, fol-lowed by two years of supervisedrelease, for defrauding Wells FargoBank in connection with the shamshort sale of her home to her live-inboyfriend. She was also ordered topay $288,497 in restitution and to for-feit the proceeds of her offense. Thefemale barrister, who pleaded guiltyto committing bank fraud, was a sen-ior attorney at the FDIC untilSeptember 2014. l A Georgia lawyer and his title
agent accomplice were indictedon charges of with conspiracy,wire fraud and related crimes inconnection with the alleged theftof $20 million-plus from attorneyescrow accounts and operatingaccounts of a law firm and titleagency to pay personalexpenses.
l Five Virginia mortgageemployees, one a VP with SunTrust Mortgage were convictedby a federal jury on charges ofconspiracy to commit wire fraudaffecting a financial institutionand various counts of wire fraudaffecting a financial institution.According to court records andevidence at trial, the ringleader,then employed at Bank ofAmerica, was hired by SunTrustMortgage tasked with opening anoffice in Annandale, Va. Afterhiring his wife, another formerloan officer from Bank ofAmerica, and her brothers, towork as loan officers, the groupfalsified loan applications forborrowers and purchased faketax documents to support thefalse loan applications.
l A Florida title company is underfire, and has been named adefendant in a lawsuit for sendingthe wrong wiring instruction to aborrower when then wired thepurchase proceeds not to theseller, but to a group of criminals.
The instructions were sent to thetitle company by hackers whowere behind the theft scheme.The title company is now beingheld to task over its data securitymeasures.
l A Brooklyn, N.Y. attorney whopleaded guilty to two felonyconspiracy charges for her role ina massive mortgage fraudscheme has received a five-yearsuspension from practice. Thelawyer pled guilty in 2011 to onecount of conspiracy to commitwire fraud and one count ofconspiracy to commit wire andbank fraud as one of 12 co-conspirators in a scheme thatfraudulently obtained more than$9 million worth of residentialproperties by using fictitiousidentities and documents. It isunclear why the state bar tookfive years to finally takedisciplinary action against her.
TRID surveys revealingThere have been interesting pollsreleased lately regarding how TRIDhas impacted lenders, settlementagents and consumers.
A Secure Insight survey conductedof 1,342 mortgage industry execu-tives nationwide regarding the impactof the new Closing Disclosure (CD)on their lending business found thatthe preparation and rollout went well,although over nearly two-thirds ofrespondents experienced “significantoperational cost increases” impactingbudgets, staffing needs and con-sumer rates and fees. More than 80percent felt the new rules have had a“positive impact on the overall trans-parency and efficiency of the mort-gage process.” A similar SSI poll of9,560 attorneys, title agents, escrowofficer and notaries nationwide foundthat most agents rated the impact ofthe new CD on business operationsas “Negative” or Very Negative,”fueled mainly by increased opera-tional costs. As to the new form’simpact on consumers, from theagents’ point of view, it has not beenas positive as perhaps the CFPB hadhoped. Nearly 60 percent of thosepolled felt that the new disclosurehas not helped with efficiency andtransparency, and that the impacthas generally been “Negative.” Onlynine percent saw the new form as apositive for the consumer experi-
ence, while the balance felt the“jury is still out.”
STRATMOR announced that dataextracted from its MortgageSATBorrower Satisfaction Programreveals overall consumer satisfactionwith the mortgage process hasincreased since TRID was imple-mented—but the increase is satisfac-tion mainly has to do with the factthat lenders are more frequently con-tacting borrowers during the post-application/pre-closing period, as aresult of the CFPB’s new rule.STRATMOR’s data also shows thatalthough the average number of daysto close a mortgage loan increasedfor a few months after TRID was firstimplemented, the average number ofdays to close has since decreased—at least as of February—back to anormal “pre-TRID” level.
Closing Corp. recently releasedthe results of its own survey of con-sumers. The company interviewed1,000 repeat homebuyers who hadpurchased a home both before andafter the new TRID rule took effect onOct. 3, 2015. Some of the findingswere: 64 percent of respondents saidit was easier getting a mortgageunder the old rules, than under TRID;57 percent said it took more time toclose a loan under TRID than it didpreviously; 63 percent said that thenew “Know Before You Owe” formsfor loan estimates and closing disclo-sures were easier to understand thanthe old forms; 68 percent said thenew forms did a better job preparingthem for the closing costs they wouldhave to pay and 65 percent of therespondents said that the costs andfees were “explained better” in theirmost recent experience. The biggestpositive response seems to be relat-ed to shopping for services.According to Closing Corp., 78 per-cent of consumers surveyed saidthey were more informed about theirthird party service provider options(title companies, pest companies,engineering inspectors etc.)—74 per-cent of those consumers said theytook advantage of it and 55 percentsaid they saved money as a result.
On the lighter side …This month, we have a little some-thing for everyone …
What is a mortgage broker? A realestate agent without the sense ofhumor.
What is the definition of a goodreal estate agent? Someone who hasa mortgage loophole named afterhim.
What’s the difference between areal estate attorney and an account-ant? The accountant knows he isboring.
the Closing TableBY ANDREW LIPUT
Andrew Liput has been a corporate, real estate and banking attorney for nearly 30 years He is the founder, CEO and presidentof Secure Insight, the first data intelligence and risk analytics firm tooffer specialized vendor management services to mortgage lendersand banks nationwide addressing settlement agent risk. He can bereached by e-mail at [email protected].
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Hash It Out with Frank Garay & Brian StevensHard-hitting, fact based look at some of the most important issues facing the homefinance industry today – with a bit of humor and irreverence thrown in.
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O N T H E
heardstreet
Our Heard on the Street column is a chronicle of events, changes and passages in the lives of the people and companies shaping the mortgage industry.
PRMG Announces RetailDivision Expansion
Paramount Residential Mortgage GroupInc. (PRMG) has announced the compa-nywide expansion of its Retail Divisionwith seven new additions to its teamnationwide.
David Haynes joins PRMG as retailregional manager for the NorthernCalifornia Territory. David is a 19-yearveteran of the mortgage industry, andbrings an outstanding track recordwhich includes originating $1 billion-plus in production throughout hiscareer. David is a graduate of the CMBA(California Mortgage BankersAssociation) Futures Leaders program2008 and sat on the CMBA LegislativeCommittee for the influential 2008-2009 legislative season, as well as 2012.
Ed Roberts has been promoted tothe role of retail regional manager forthe Central States Territory. A 20-yearveteran of the mortgage industry, Edhas experience in all areas and phasesof the home loan process and mortgagefinance arena. He began his career as aloan officer and surely knows the needsof the loan originator, thus providingmortgage sales success for new employ-ees in the Central States.
John Seib has been promoted to theposition of retail regional manager ofthe Pacific Northwest Territory. Johnhas been with PRMG for almost twoyears and has quickly advanced from abranch manager to a regional manager.During his time at PRMG, John openeda branch in Lake Oswego, Ore. and hasbeen able to expand the market toBend, Ore. and Bothell, Wash. as well.
PRMG has also announced the pro-motion of Mike Mitchem to retailregional manager of Florida. Mike is a14-year veteran of the mortgage indus-try along with an outstanding trackrecord, which includes such positionsas EVP for All-Florida Mortgage Centers,owner of Island Point Mortgage, area
sales manager at ResMac, regional salesmanager at Hamilton Funding Group,and sales manager with PRMG. Mike iscurrently president of the FloridaAssociation of Mortgage Professionals(FAMP) Central Chapter. In his new posi-tion as a PRMG regional manager, Mikewill be tasked with daily responsibilitiessuch as seeking talented branch man-agers and loan originators in Floridaand recruiting them to the firm.
PRMG has added 30-year mortgageindustry vet Brian Mader as retailregional manager of the NortheastTerritory. Brian started as a loan origi-nator before being promoted to abranch manager. Over time, it wasthere that he eventually founded hisown mortgage company for 13 success-ful years where he had the opportunityto work with large local lenders, localmortgage brokers and also large nation-al banks, including JP Morgan Chaseand Bank of America. In his new posi-tion as a PRMG regional manager of theNortheast Region, Mader will be focus-ing on providing continual guidanceand support to existing branches resid-ing within his region.
PRMG has also announced the addi-tion of Byron Enriquez as retail regionalmanager for the Southern CaliforniaTerritory. An 18-year veteran of themortgage and finance industry, Byron’sdiverse banking and finance expertisealong with his tenacious commitmentto driving sales, profit, and marketshare growth will make him an excel-lent ambassador for developing theSouthern California Territory.
PRMG has promoted Frank Castanosto the position of regional manager ofSouthern California and Las Vegas.Starting his PRMG career back in 2005,Frank has had the opportunity to workas branch manager at several retaillocations, including Hesperia, Ontarioand Victorville, Calif. most recently. Hehas been recognized as a Chairman’s
Cabinet member five times and hasbeen awarded as a member of thePresident’s Cabinet numerous times. Asa new regional manager, Frank will beresponsible for increasing PRMG’s pres-ence, communicate the PRMG culturewith incoming recruits, all the whileworking with the branch managers inthe fulfilling of collective goals inrecruitment and production.
Buddy White has been named retailregional manager for the Northwestand Northern Mountain states. In hisnew position, Buddy will be leveraginghis talents toward recruiting and over-seeing retail branches, including devel-oping new areas within and outside hisregion, as well as providing support tobranch managers and loan officers whoare looking to making a long-term com-mitment with PRMG.
Secure Insight andStrategic CompliancePartners Join Forces
Secure Insight (SSI) and StrategicCompliance Partners (SCP) have reachedagreement on a strategic business rela-tionship. This partnership presents agreat opportunity for each company toprovide its clients with best-in-classcomplementary services. SSI will now beable to provide its clients with attorney-driven, fixed-price compliance pro-grams, which mitigate risk and deliversolutions for today’s increasingly regu-latory climate. Additionally, SCP will beable to offer its clients a proprietarydata driven risk management solutionwhen evaluating closing agents.
“We considered this relationship verycarefully and spent significant timeevaluating the Secure Insight businessplatform, its products and services,”
said SCP Founder and CEO Ari Karen. “Iam well aware that there are manycompanies claiming to provide reliablevendor management covering closingrisk however SSI remains the leadinginnovator with the most comprehen-sive and accurate risk evaluation tooloffered today. We are excited about thisnew strategic alliance.”
“Ari is known as one of the mosteffective and knowledgeable legal, reg-ulatory and compliance attorneys inthe mortgage industry and his compa-ny has the same passion, dedicationand commitment to managing industrycompliance and risk management solu-tions as he does,” said Andrew Liput,Secure Insight president and CEO. “SCPhas a unique platform, providing com-prehensive compliance solutions sup-ported by attorneys, experiencedindustry professionals and the OffitKurman law firm. We are proud to rec-ommend the services of SCP to ourmany lender clients and pleased towork together with SCP to bring afford-able and reliable compliance and riskmanagement solutions to the market-place.”
Freedom Mortgage toAcquire Chase’s RuralHousing Business
Freedom Mortgage has announced thatit has signed an agreement to acquirethe correspondent origination assets ofJPMorgan Chase’s Rural Housing busi-ness. Freedom Mortgage will operatethe business unit under its own bannerand will keep in place the existing teamof dedicated professionals that hasserved the nation’s rural and low-to-moderate income lending needs forover 23 years. The transition will befully completed on July 1, 2016.
“We are extremely pleased toexpand this important business unitwithin our growing array of services toour nation’s borrowers,” said Stanley C.
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© Copyright 2007-2016 Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200A, Anaheim, CA 92806. 800-561-4567. NMLS ID 2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access website: www.nmlsconsumeraccess.org. AZ: Mortgage Banker BK-0910745. CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, File 413 0904. CO: Check license status of your mortgage loan originator at www.dora.state.co.us/real-estate/index.htm. GA: Georgia Residential Mortgage Licensee 22721. IL: Illinois Residential Mortgage Licensee. KS: Supervised Loan License SL.0000313. KY: Mortgage Loan Company License MC21112. MN: This is not an offer to enter into an interest rate lock agreement under Minnesota Law. MS: Licensed by the Mississippi Department of Banking and Consumer Finance. Mortgage Lender License 2600. MO: Missouri Company Registration 14-1746-A. In-State Office: Missouri Residential Mortgage Loan Broker License 14-1746-A1. 251 SW Noel, Lees Summit, MO 64063. NV: Mortgage Broker License 4068 (Residential Mortgage Lending). NH: Licensed by the New Hampshire Banking Department. NJ: Licensed by the N.J. Department of Banking and Insurance. NY: Licensed Mortgage Banker—NYS Department of Financial Services. New York Mortgage Banker License B500980/107664. OH: Ohio Mortgage Broker Act Certificate of Registration MB.804213.000; Ohio Mortgage Loan Act Certificate of Registration SM.501517.000. OR: Mortgage Lender License ML4886. PA: Licensed by the Department of Banking. RI: Rhode Island Licensed Lender, Lender License 20112809LL. VA: Licensed by the Virginia State Corporation Commission MC-5382. NMLS ID 2600 (www.nmlsconsumeraccess.org). WA: Consumer Loan License CL2600. Also licensed in AL, AR, CT, DE, DC, FL, ID, IN, IA, LA, ME, MD, MI, MT, NM, NC, OK, SC, TN, TX, UT, WV, WI and WY. NOTICE: All loans subject to credit, underwriting and property approval guidelines. Offered loan products may vary by state. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. Terms, conditions and programs are subject to change without notice. This information is for mortgage professionals only and is not intended for distribution to consumers. Carrington Mortgage Services is not acting on behalf of or at the direction of HUD/FHA or any government agency. All rights reserved.
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Middleman, Freedom Mortgage CEO.“Chase has a proven team of expertswho thoroughly understand the uniquerequirements of rural housing cus-tomers. We look forward to furtherdeveloping Freedom Mortgage’s pres-ence in this essential market throughour national network of correspon-dents. Over the next several months wewill work very closely with Chase toensure a smooth transition that keepsservice levels high and funds flowing tothe borrowers who need it.”
This acquisition is the latest devel-opment in Freedom Mortgage’s growthstrategy. The company, in business for26 years, has grown to become one ofthe country’s largest wholesale andcorrespondent lenders, working withmortgage professionals all acrossAmerica to deliver its trademark highquality financial services to thenation’s homeowners.
“This decision aligns with our overallstrategy to simplify our mortgage busi-ness. We will continue our strong part-nership with the USDA to service ourexisting mortgage customers,” said GregBeliles, head of Correspondent Lendingat Chase.
Parkside Lending Opensfor Business in Missouri
Parkside Lending LLC has announcedthat it is now lending in the state ofMissouri. Parkside has been growingrapidly and with the addition ofMissouri, its national expansion hasnow reached 48 states.
“We are excited to bring Parkside’s‘power of caring’ to our clients’ borrow-ers in Missouri,” said MatthewOstrander, chairman and chief execu-tive officer of Parkside Lending. “We willdeliver the same great customer experi-ence that our clients rely on in all theother regions of the country.”
Ostrander co-founded ParksideLending in 2004. He and his manage-ment team successfully navigated themortgage deterioration of 2007-08, andhave since grown the company tobecome a well-known national whole-sale lending platform.
MetaSource Announcesthe Acquisition of TitanLenders Corp.
Titan Lenders Corporation has announcedthat it has been acquired by Utah-basedMetaSource LLC, a provider of an array oftechnology-driven services and solutions,including business process outsourcing(BPO), business process management(BPM), enterprise content management(ECM), workflow and customer service
experience. The acquisition of Titanbroadens the company’s footprint indata-centric mortgage services.
“We welcome Titan to theMetaSource family,” said AdamOsthed, president and CEO ofMetaSource. “Not only does Titanbring a combination of solutions andmortgage industry expertise, but itwas also apparent that our missionand values were in alignment.”
“From its inception, Titan’s missionhas focused on bringing much neededtransparency and standardization to themortgage process,” said Mary Kladde,CEO of Titan. “Titan was a natural fit forthe MetaSource approach to improvingmortgage operations, and we foresee
this relationship proving fruitful formortgage industry participants throughaccess to the combined suite ofMetaSource and Titan solutions.”
First American MortgageSolutions Announces theAcquisition of ForsytheAppraisals
First American Mortgage Solutions LLC,
a subsidiary of First American FinancialCorporation, has announced its acquisi-tion of Forsythe Appraisals LLC.Forsythe Appraisals offers comprehen-sive real estate valuation solutions withnationwide coverage. The acquisition ofForsythe Appraisals augments FirstAmerican Mortgage Solutions’ existingvaluation capabilities, providing lendercustomers with extensive valuationoptions aimed at quality, efficiency andcompliance.
First American Mortgage Solutionscan now offer lenders an integrated val-uation solution that provides access tostaff appraisers nationwide through
continued on page 64
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How is your IT IQdefining yournetworking ability?Does the “10 SecondRule” still stand formaking a first
impression in today’s IT businessclimate, with the institutionalizationof social media, e-mail, Facebookand LinkedIn?
Today, we are all affected in onemanner or another with our IT IQ.How is your IT IQ defining yournetworking ability?
I loved networking theantiquated way, live-in person,meeting new people, findingcommonalities, sharing contacts,social networking … it’s all a blur;sort of like cursive handwritingtaught in grade school and anessence of an era gone by.
I too use social media andInternet communication 24/7, forbusiness, work, friends, family and
social events. I probably couldn’tfunction properly without, but Imiss the days of live interaction.Not knowing who you might meet,what twists and turns lay ahead.Are those days truly at an end?
Can we learn to incorporatebusiness networking in with our ITnetworking? It’s a challenge–wehave fewer opportunities, less timeand lower desire to physicallyattend functions.
The Internet has swallowed usup. We live in the belly of the whale(the Internet) like Jonah orGeppetto in Pinocchio. We’recontent not to venture out. We mayhave even adopted a fear of theunknown meeting when previouslyit was a way of life for mostbusiness professionals, especiallythose in sales.
As a loan officer, I built mybusiness on networking, bothsocially and professionally. Calling
on real estate agents,broker/owners and builders,attending functions, brandingmyself, developing my self-image-getting out there. I knew Ihad 10 seconds to make the bestfirst impression! I can say I havemade many connections that arelifelong relationships, businesscolleagues and others I wouldcall my friend.
How do we do this withInternet networking?Are we making those lifelongconnections? How are we makinggood, lasting first impressionsduring those first 10 secondswithout voice inflections, withouteye contact, without facialexpression … we are black andwhite. I don’t feel the connection,nor the opportunity to be aresource to an Internetconnection. I hate when people
endorse me or ask for myendorsement on LinkedIn that Ihave never met. Many do it forthe noticeability it provides tothem to be connected tosomeone that is perceived to be“well-connected.” I have sentmessages in response to thoseasking, “I don’t recommendindividuals I have never met!”Seriously, what’s the point, andmore importantly, what’s thevalidity of therecommendations—kind of like“The Likes” on Facebook.
The Internet is an easy way tostay connected, the keyword is to“stay.” It is not advantageous inmaking new connections thatbecome relationships. Whichleads me into the IT IQ wheresome of us might be better techskills than social skills. So howdoes your IT IQ affect yournetworking opportunities?
take thelead!
Take the Lead!B Y L A U R A B U R K E , M B A , M S , M I S , C F E , E A
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Key components of IT IQ wouldbe:l Adoptability: How quickly does
your brain register new ITmethods. Would it be first wehad e-mail, then texting,Facebook, Instant messagingand Twitter? Are you using allof these methods and howquickly did you adopt thesenew technologies?
l Adaptability: How quickly andeasily did you adapt to theabove technologies?
l Attitude: How well do youmarket yourself with your IT IQ.I know too often I respond tooquickly to an Internet messagewith short sentences orverbiage I quip out. Notmeaning anything by it, justtaking for granted that theperson reading it also has asimilar mindset and instantlyrecognizes the fact that I’mbusy and don’t intend to beshort, curt or unconcerned. Infact, I’m not meaning to bepompous or ungracious, butthey don’t know it. They are intheir own world of incomingtexts, messages and e-mails.They have quickly read mineand are taken aback. How do Ifix this 10 second blunder?Remember the old in-personmethod would take 10 morecontacts to correct a poor firstimpression. I would venture tosay it may take as many,maybe a few less depending onhow curt you came across andhow well you know the otherperson. Was it your friend, co-worker, boss or new client? Itdoes make a difference.
l Acceptance: Once we haveadopted a new method,adapted to its use, and have apositive attitude towards it, wemust finally accept it as a newmethod of communication andembrace it.
How do we brand ourselves withour new IT IQ?Have you developed a brand … apicture and a few words that weuse on our social media thatdepicts in a few seconds who weare?
Branding can be simplified usingsocial media, we can choose abyline, a quick one sentence blurbabout who we are, add anothersentence about what we do, havea specific picture we identifyourselves with and use it regularlythrough all social media.
I like this, I don’t have toremember my 10 second signatureline, I get it right every time on theInternet. But at what cost? Have Ilost the personal part of me thatmakes me memorable? I’m not
talking about whether I look good,but I’m talking about a specificcharacteristic that might beidentifying to me or you. Like redhair, blonde hair, a special cut, asignature scarf, a hat, a highpitched voice, green piercing eyes?We see or hear none of this viasocial media, how do we gain thecompetitive advantage then via theinternet.
We use our IT IQ and buildstrategic posts, making usmemorable. We use a specificphoto striking a chord ofremembrance to our targetaudience. Start a blog to becomemulti-dimensional. Keep in mind;we control 100 percent of whatothers see about us. We should beable to control blunders andmishaps via IT IQ, some mucheasier than live mishaps.
For example, working fromhome, kids are sick, car is in theshop, a little under the weather viaour IT IQ no one ever needs toknow. You can still appear to be inthe office with professionalismexuding at all times.
There is a shield that protects usfrom being stereotyped, whether itsgender bias, generationstereotyping, or any other type ofprofiling, our IT IQ shields us fromthat. However, I do believe firstimpressions are every bit as criticalwith IT as live and in person. Keepit brief and memorable.
The 10 second rule may bereinterpreted as the first internetimpression one gives is judged anda decision is immediately made asto whether someone is buying yourpersona or not. You are not onlyselling and marketing yourproducts and service, but yourselfas well. I still say make your first 10seconds count! Always make ityour best first impression. You willalways have only one chance atmaking that first impression.
What is proper etiquette for ournew IT IQ?How to develop etiquette andsocial skills when using IT media:
l Be respectful and take the timeto think about what you aresaying. Sending off a quick quipcould be misinterpreted.
l Ask for referrals just as youwould do in-person. The personyou are connected to may notknow you are open to referralsand even welcome them.
l A simple thank you is alwaysappreciated, via live, written orcommunicated via IT … thethank you is alwaysappreciated.
l Ask what you can do forsomeone else …. don’t alwaysbe the taker, be the giver.
l Always have your contactinformation readily available inyour IT message, your name,phone number and e-mail arealways a must.
l Lastly, use spell check andproper grammar.
Do we use different skills, IT IQwhen dealing with differentindividuals?How we talk to our best friend,spouse, sister and/or kids verseshow we connect to a client, co-worker, proposed client, pastclient our boss are all different.Take the time to think througheach of these. Doesn’t our bestfriend deserve the same courtesywe afford our clients? I get thefact that in the midst of amountain of texts , its personaland different with our family andfriends, but I have sent texts thatare so misspelled due to autocorrect and fingers hitting thewrong keys that after sendingthem, I am embarrassed that themessage came from my phone.So check all messages todetermine they are saying whatyou think they are saying.
Don’t be shy to request referralsWhen networking for businessusing your IT IQ, use yourdatabase, ask for referrals andask to link to others events, blogsand Web sites. It’s still all aboutnetworking, and now moreopportunities come our way everyday, it’s up to us to use our IT IQand capitalize on the opportunitiescoming our way!
In last month’s column, “DoYou Know What Your SEL IQ isSaying About You?,” we looked atsocial and emotional intelligence,with responses from:
Jessica Kofink, VP of FortressFlooring, former BOA Sr. Banker“I agree that there are multipletypes of intelligences with eachperson as stated in Burke’scolumn ‘Take the Lead: Do YouKnow What Your SEL IQ is SayingAbout You?” Working in thebanking industry, it was myemotional IQ that I relied on. Theability to understand my clientsbased on their body language,voice fluctuations, and facialmovements helped me to become
successful in my position withsales. While I have never givenmuch thought as to how I obtainedthat skill, I would say that I havealways had an interest in observingothers. As a child with poor vision,I would often study my friends’ andfamilies’ mannerisms in order toidentify them because it was hardfor me to see their face from adistance. As stated in the article,environmental factors are believedto be contributors, and in my case,I would agree. My Emotional IQcomes in handy often and thisarticle definitely made that moreapparent.”
Genevieve Riley, ProgramRepresentative for not-for-profitDancing Classrooms GreaterChicagoland, former LaborAdministration“Great article! I can definitely relateto Internet technology IQ andEmotional Intelligence. My workoften requires that I relate topeople and clients both on thephone and via e-mail. Whensending correspondence throughe-mail/phone to sell my “product,”which in my case is a program, Iwill tailor to each particular personand what I think they will respondto. I research my clients online andthen apply that knowledge to mycorrespondence, putting inpersonal touches that help merelate to them and in turn help tosell my product. I find it mucheasier and comfortable tocorrespond through email and havehad excellent results.”
Take the Lead! It’s your turnnow … join in our mediadiscussion, via online connectionsthrough Facebook, Twitter and e-mail. We want your voice to beheard. We will share your stories,ideas and suggestions, giving youcredit for your participation. Let’sgrow together! Submit yourresponses [email protected].
Laura Burke, MBA, MS, MIS, CFE,EA is an author, and trainer with20-plus years of experience in themortgage arena. She was recentlyone of six members chosen for theIRS IRPAC Advisory Committee,where she will serve a three-yearterm. She may be reached by e-mail at [email protected] [email protected].
“Branding can be simplified using social media, we can choose a byline, a quick one sentence blurb about who we are, add another sentence
about what we do …”
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April 2016 l Written and compiled by Rick Grant
NMPNext: It’s What’s Next
Knowing what’s going on in your industry at any given time is critical if you hope to make the kinds of decisions that will positively
impact your enterprise. Knowing a bit of history is nice, too, because it puts what you know about today into context and helps you do
a better job of predicting what will happen tomorrow. But knowing what’s going to happen next is pure gold. That’s the goal of this
new special section of National Mortgage Professional Magazine.
Two things you should know about this new section in NMP. First, I’ve been asked to edit it, working under NMP Editor-in-Chief Eric C. Peck.
I’ve been around this industry for a while now, starting as a special reports editor under Mark Fogarty at National Mortgage News in 1997. Since
then, I’ve interviewed thousands of executives working in our space and written for about half of the trades that serve executives working here.
I’m very excited about getting back into that work. I’m not giving up my own company, and I’m not becoming an employee of NMP. In effect, I’m a
freelance editor partnering with NMP to bring something totally new to the market.
The second thing you should know is that this section is sponsored content. Wait, what?
Yes, the companies that appear in this section, the experts I call upon for commentary (in almost all cases) and the firms that are the focus of
our in-depth features have all paid a price to be here. Well, technically, they’ve bought in on this new concept and chose to sponsor this section.
So, this is the concept. Publications serving our industry have seen rapid growth in sponsored content sales. That makes sense. While display
ads are essential brand builders, feature articles and special directory listings are very good at letting buyers know exactly why a given company
should be an option and receive an inquiry. As sponsored content has flooded the market, publication readers have been quick to separate this
material from “real news.” The result has been that many good pieces go unread because they bear the legend “sponsored content.”
Why does this happen? It’s a credibility issue. We’re fortunate to have trade publications that employ really good journalists. Every single pub in
our space has reporters that my firm calls upon frequently because we know they get the stories right. They are credible journalists, in every
sense of the word. But they don’t write the sponsored content. Typically, the content is written by the sponsoring firm’s marketing department,
which tends to make it a brochure. Doesn’t mean it’s not great material. Just means it may not get read.
It might be better if the editorial staff could write the material, but they cannot because then they lose their objectivity and their credibility will
swiftly follow. It’s that Great Wall of China that publications work so hard to maintain and it’s important. Sponsors could hire freelance writers,
and many do, but they maintain strict control over the story and too often it comes out sounding exactly like the brochure. It can be very difficult
for a freelancer to hold his ground against a client that pays well and on time.
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Angel Oak Mortgage Solutions is leading the way in the alternative lending space. Offeringwholesale subprime and alt-doc options, Angel Oak brings safety and reliability back to the
non-prime market.
Angel Oak Mortgage Solutions LLC3060 Peachtree Rd NW, Suite 500BAtlanta, GA 30305855-539-4910www.angeloakms.com
Caliber Wholesale’s success is built on a full array of conventional, government and Portfolioloans, combined with our reputation of providing our business partners with the highest level
of service.
Caliber Home Loans Inc.3701 Regent BlvdIrving, TX 75063800-754-8955CaliberWholesale.com
Citadel Servicing is committed to the emergence of Non-QM/Non-Prime lending. Pioneeringthe most innovative lending programs which include Alt Doc, life events (FC, BK, and SS),
$3mil loan amounts and low fico scores.
Citadel Servicing Corporation15707 Rockfield Blvd, Ste 320 Irvine, CA 92618949-900-6630www.citadelservicing.com
We’re an award winning Appraisal Management Company focused on building positive rela-tionships with our business partners. We are revolutionizing the way business is done with
our new and exciting technology.
Class Appraisal770 S. Adams, Suite 300Birmingham, MI 48009866-333-8311www.classappraisal.com
FGMC: Correspondent, Wholesale & Retail + Warehouse Lending. Full spectrum of lendingproducts and services nationwide.
First Guaranty Mortgage Corporation1900 Gallows Road, Suite 800Tysons Corner, VA 22182800-296-2275fgmcorrespondent.com
Paramount Residential Mortgage Group, Inc. (PRMG) is one of the largest privately heldnational mortgage bankers and residential home lenders, helping homeowners purchase
homes across the U.S.!
Paramount Residential Mortgage Group, Inc.1265 Corona Pointe CourtCorona, CA 92879951-278-0000www.prmg.net
REMN Wholesale provides same day turn times every day on new file submissions. With acommitment to the broker experience, REMN is leading the way as a preferred partner in the
mortgage industry.
REMN Wholesale194 Wood Ave. S. 9th Floor732-738-7100www.remnwholesale.comIselin NJ, 08830
A vendor management solution. The first settlement agent vetting firm in the industry todayoffers a host of reliable and affordable risk tools for banks, mortgage lenders and credit
unions.
Secure Insight100 Lanidex Plaza, Suite 1201Parsippany NJ 07054877-758-TRUST (7878)www.secureinsight.com
TagQuest Inc. is a full service marketing firm offering the most up-to-date, cutting edge mar-keting solutions for the ever changing Mortgage Industry. Proudly serving our clients for over
a decade.
TagQuest Inc.711 Medford Center # 240 Medford, OR 97504888-717-8980www.tagquest.com
UWM is a forward-thinking, fast-moving and innovatively inspired lender that is always working to champion mortgage brokers and change the game with the latest and greatest
technology and services.
United Wholesale Mortgage1414 E. Maple Rd. Troy, MI 48083800-981-8898www.uwm.com
nmpNEXT is the future of corporate storytelling. It melds the sponsored content that publications depend upon with the editorial focus that lendscredibility to the sponsor's most important stories. In NEXT, Rick Grant, NMP’s Special Feature Editor, will look at what's just around the curve bytelling stories about the firms that are leading the way. A variety of sponsorship levels allow advertisers to balance budget with reach and puts marketingmanagers in control of one of the most powerful channels available for advancing their brands. nmpNEXT is a monthly feature in National Mortgage
Professional Magazine. Don't miss this opportunity to brand your company, products and leaders as progressive & forward thinkers.
For more information on nmpNEXT packages, please contact Scott Koondel at 516.409.5555, ext. 324 or e-mail [email protected]
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So how does NMP Next work?This is a hybrid approach to sponsored content that combines a professional industry trade press editor working on a freelance basis with apublication’s internal marketing machine. In this section, I’ll control the content, under the direction of Eric C. Peck. I’m the outside editor working ona freelance basis and Eric is head of the Editorial Department. NMP’s sales team will interact with potential sponsors. If it works, as I suspect it will,we’ll have tossed a rope over the Great Wall, allowing us to work together without compromising what we all bring to the task of sharing the mostimportant stories with the industry.
Still, two potential problems seem obvious. First, won’t the Sales Department pressure me to write fluffier articles about companies we cover? Maybe,but Eric will protect me. If he can’t, this experiment won’t last long. Second, why would a rich advertiser agree to let me control a story if they have to payto be included? Won’t they just walk away? I’m not overly concerned about the fact that some may. There are plenty of opportunities for companies to buysponsored content, and I’m sure they’ll do quite well elsewhere. Anyone can find a home for anything they want to publish.
NMP Next will attract sponsors who are doing great things, who have great stories to tell, executives who are not afraid to look into the future and tell uswhat they see. NMP Next is for the companies that are driving our industry toward whatever is out there for us to encounter tomorrow. These are thepeople I’ve enjoyed reporting on for as long as I’ve been in this industry. I think they will embrace this section. I can’t wait to tell you their stories.
both wholesale lenders and their TPO partners. They met with NAMBboard members first in Orlando in March of 2015. Since then, theyhave come together on two more occasions, most recently in SanAntonio in February.
The February meeting focused on a number of key topics, includingmarketing to and recruiting Millennials, technology, compliance andlegislative action.
NAMB President-Elect Fred Kreger took the microphone for the firstofficial session of the day. He presented with Ginger Bell. She focusedon the Millennial opportunity, while Kreger talked about shifting ourapproaching from trying to survive to preparing to thrive.
“We want to look at how we can move on from surviving and startthriving. We want to see our channel get off defense and onto theoffensive,” Kreger said.
Bell shared some very interesting statistics regarding the newgeneration of homebuyers, the Millennials, and asked the audience tobegin thinking about not only how to sell them but how to recruit them.It’s a subject Bell said she had been discussing with people bothinside and outside of our industry, including Larry Cox fromPepperdine University. Bell and Cox put together a focus group madeup of Millennials who were already in the industry and talked to themabout their perceptions, in order to find the problems and create asoftware solution. The process took a year.
“The problem is really the perception of our industry,” Bell said.“The reason is that many universities teach in their business ethicsclass how financial services is an example of bad corporate ethics.They are being taught to hate us.”
And it’s having an impact. Bell pointed to a statistic that showedthat every day, 10,000 youngsters turn 21.
“We have to address this,” Bell said. “But not internally. We have totake the conversation out of our industry.”
With Cox, she has started a financial literacy initiative atPepperdine. She pointed out that the University had a great financeprogram, but they had never been approached by anyone in theindustry to speak to their students. There was no evidence ofmentorship being provided by our industry.
But Bell cautioned the audience to think about more than just sellingto this group, as these young people will account for three out of fourworkers within nine years. She promised that the group would exploreideas for recruiting Millennials in an upcoming roundtable. Doing thatsuccessfully will require the industry to learn more about them.
She provided the following information:u 80 percent of Millennials surveyed believe that they are better off
than parents, but
What’s Next for Mortgage Brokers
When the financial crash led to the foreclosure crisis and peoplestarted looking around for guilty parties, they looked where theyalways look during a mortgage downturn. It was decided by some ofthe nation’s largest bank-owned mortgage lenders that the source ofthe problem was their third-party origination (TPO) networks and theypromptly shut them down, sending tens of thousands of mortgagebrokers into different industries. Now, years into the recovery,brokers are still working their way back to a position that, at onetime, put them primarily responsible for originating upwards of 70percent of all home financing available in America.
Two forces are driving the return of the mortgage broker. The firstis the rise of a number of very large, non-bank wholesale lenderswho are actively building out their TPO networks. The second isNAMB—The Association of Mortgage Professionals. In the spring of2015, NAMB approached wholesale lenders about working togetherto advance the future of the wholesale lending business.
The goals of the inaugural NAMB Wholesale Summit was tobrainstorm and exchange ideas on how to change the legalenvironment where everyone wins, from consumers to mortgagebrokers, to correspondents, and even large banks and lenders. Morethan 15 wholesale lenders answered the call. It was the beginning ofan ongoing project to build the wholesale lending business, increasemarket share and profitability, and address compliance concerns for
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u 53 percent are living paycheck-to-paychecku 32 percent are saving for a house, whileu 33 percent are saving for a vacation andu 22 percent are not saving at allu 35 percent still get financial support from relatives
With homeownership at 64.7 percent, the lowest level we haveseen in 19 years, it’s time to get Millennials into homes. After all, it’s23 percent cheaper to buy a home than rent a house. But do theyknow it? And will they trust us when we tell them?
Bell pointed out that Millennials are afraid of financial services.“Remember, they went through the downturn during their formative
years,” said Bell. “They saw their parents lose homes and jobs, aswell as their retirement accounts. Now, they are being taught inschool that we’re an ethically bankrupt industry.”
Some are calling the Millennials the next hero generation. Theywant to be involved in giving back, doing good.
“Why would they get into our industry?” Bell asked.NAMB Director David Luna took the microphone for an
entertaining and informative session on technology. He shared anumber of videos with attendees that demonstrated the growingcomfort level on the part of consumers for today’s latesttechnologies. He also offered examples, taken from working brokersin attendance, demonstrating how certain technologies are essentialfor any broker who hopes to do business with the next generation ofhomebuyers. That requires everyone to keep up, which can bedifficult with the Internet of Things a reality and everything movingvery quickly.
“I’m sure that some brokers are still doing things the ‘oldfashioned’ way,” Luna said. “And by that, I mean from the summer of2015. Or the fall of 2015.”
Luna asked lenders in attendance what could be done to helpbrokers originate more electronic loans. Ultimately, the group agreedthat there were so many parties involved in the mortgage that it’staking time for everyone to get on the same electronic page, evenwith the work MISMO has done to standardize our data elements.One wholesale lender, who spends time working on a MISMOworkgroup estimates that it will take another 10 years for themortgage industry to go fully paperless.
It’s unlikely that consumers will wait that long. The results ofQuicken’s Rocket Mortgage will be an indicator. In any event, Lunapointed out that brokers now realize that technology constitutes acompetitive advantage and they will gravitate to wholesale lendersthat can offer them–and their borrowers–the best tools.
Finally, NAMB Government Affairs Committee Co-Chair ValerieSaunders led the last session of the day with a look at regulatorycompliance and some of the work NAMB was doing to preparebrokers. Much of her presentation focused on a recent surveyperformed by the National Association of Realtors (NAR) in whichthey asked real estate agents about pain points resulting from theCFPB’s TILA/RESPA Integrated Disclosure (TRID) rule.
By the time she was done, everyone agreed that the real estatesales industry still didn’t understand what TRID was supposed toaccomplish and were blaming the lending industry for the shift ininformation flow, sending documents that used to come to themdirectly to the borrowers in the form of the Closing Disclosure (CD).
Lenders are still working through the TRID changes and attendeesagreed to continue to work together to ensure that brokers weredelivering compliant loans.
As the Wholesale Summit came to a close, attendees agreed toreconvene in the fall to continue to work together for theadvancement of the wholesale lending industry. The next meeting isset for the fall in conjunction with NAMB National in Las Vegas.
Next Up: A Look at What’s Coming in MayAs more people become exposed to NMP Next over the new monthor two, I expect to be bringing you a host of stories from theindustry’s most innovative companies. It’s easy to get moreinformation about getting involved in this special section and I lookforward to working with sponsors to find out what’s really coming toour industry next.
As this issue was heading to press, I was in Los Angeles for theMortgage Bankers Association’s Technology in Mortgage BankingConference. I’ll be bringing you the show overview and some storiesabout the innovations I found on the exhibit hall floor next month. Ifyou were in Los Angeles and didn’t get a chance to visit with me,please get in touch. I’d love to know what you were promoting at theshow and what you thought of the event. Please contact me, NMPSpecial Reports Editor Rick Grant, by e-mail [email protected].
Also, next month we’ll be preparing for the MBA’s SecondaryMarket Conference in New York City. As we continue to look for newinvestors returning to the mortgage market, this annual conferencebecomes increasingly important. We’ll tell you what we’re hoping tofind in New York and look forward to visiting with some who areplanning to attend.
Finally, our nomination process for the NMP Next Awards will beunderway by the time you read this issue, and by next month, I’ll besharing a bit of information about some of the companies we’reconsidering for our inaugural awards. I don’t expect the judging tobe easy, given the competition we’re already seeing in an industryeager to speed the recovery.
If you have questions about this special section, I hope you’llreach out to me at [email protected]. Over time, I expectit to be one of the first placespeople look when they’retrying to figure out what’scoming next.
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audience. To those of us born in the last century, our kids seem likealiens. They all have devices attached to their appendages. His kidshave smartphones, but they never use them as phones. “My kidswouldn’t return a phone call if you paid them,” he said.
Understanding how this new generation lives with technology isone key to our success in the future.
Millennials are all about mobile, he told attendees, but it’s probablynot the mobile we’re used to. When the older Americans in theaudience got started with mobile, it was likely with a Blackberry andonly to read e-mail. Today’s youth don’t read e-mails. They don’t useit. It’s as outdated to them as a home phone number. Studies showthat e-mail use in new business apps has dropped 65 percent in thepast year. For the next generation, everything is real-time and app-driven. To interact with them, we’ll need an app they can downloadfrom among the 1.3 million other apps currently available on theiTunes store or Google Play.
Not only must the industry appeal more to app users, but alsobegin to share the data these apps collect. Our industry can capitalizeon that, but we have to keep our eyes on the Internet of Things (IoT).While he says this concept is only now taking hold, we will soon beliving in a world in which everything is connected and the data thesedevices collect is shared as well. Privacy is not as important totoday’s consumers as it was to the previous generation. They shareeverything from the most recent ride they took through Uber, to thelast place they stayed from Airbnb, to the health data their wearabledevices is collecting.
This, Pogue says, is one exciting opportunity that we’re currentlymissing in America. Consumers will purchase 70 million wearablehealth devices this year. We already have piles of health dataavailable to us, mountains of it. “The cure to cancer is hiding in thatdata,” he said. Maybe with the addition of Google’s “Study Kit” we’lldiscover it.
But the recent innovation he was most excited by was the newUSB port the major hardware providers are building into their newdevices.
“This is a power connector, a USB connector a video out connectorand more. It’s the dawn of the universal power cord for everything.It’s the Jesus Jack!” It will add steam to the IoT revolution becauseyou can charge your device, whatever it is, with anyone’s cord.
Pogue did not go into detail about changes he would recommendthe mortgage industry make to better communicate with the nextgeneration, but told the audience to expect more disruption. Robotsare coming. Self-driving cars. Imagine Uber with self-driving cars, hesaid.
Taken as a whole, his presentation seemed to be meant as a wake-up call for an industry that has thus far avoided change fairlysuccessfully. To put a finer point on it, he finally approached thepiano and performed a piece he had composed about a horribleexperience he had with a call center. It was a funny song, but few inthe audience were laughing. I suspect he hit a nerve.
For more information about David Pogue and his thoughts aboutthe future, visit his Web site at DavidPogue.com.
Mortgage Servicers Get a Dose of What’s Next
If you had to choose a sector of the mortgage business that hasresisted change the most successfully for the longest period of time,it would likely be mortgage servicers. They haven’t had to enticeconsumers to do business with them and the nature of their work, atleast up until the foreclosure crisis, was simply to accept paymentsand post them to the proper accounts. Up until a few years ago, theindustry’s largest servicing software package was still written largelyfor DOS and servicers worked off green screens tethered to a centralmainframe much like every business did in the 1970s. But times arechanging.
When the nation’s servicers recently came together in Orlando forthe Mortgage Bankers Association’s National Servicing Conference,they got an injection of future thinking from a man who has made acareer out of figuring out what’s coming next and writing about it.
David Pogue is the founder ofYahoo Tech, a former personal-technology columnist for The NewYork Times (for 13 years) and amonthly columnist for ScientificAmerican. He has been the host ofscience shows on PBS’s “NOVA”and a correspondent for “CBSSunday Morning” since 2002. Withmore than million books in print, heis one of the world’s best-sellinghow-to authors. After graduatingsumma cum laude from Yale in 1985,with a distinction in music, he spent
10 years conducting and arranging Broadway musicals in New York.He has won three Emmy Awards, two Webby Awards, a Loeb Awardfor journalism, and an honorary doctorate in music. He’s been profiledon “48 Hours” and “60 Minutes.” And … he’s a helluva speaker.
He took the stage in Orlando as a keynote speaker for theconference dressed casually, save for the baby grand piano set backon the stage. For the next hour or so, he told the servicing industrywhat’s coming next and why they’d better learn to deal with the newgeneration of American consumers if they hope to be successful inthe very near future.
“The kids who entered college last fall have never lived in a worldwithout air conditioning, running water and the Internet,” he told the
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DocMagic launches Total eClosing SolutionSince the Consumer Financial Protection Bureau
(CFPB) asked lenders and their vendorpartners to participate in an eClosing pilotlast year, the government has becomesold on the idea of paperless mortgages.We expect to see a lot of companiesbring eClosing rooms online in a big way.
While that’s not necessarily new as we’vehad companies offering paperless closings
for some time (a recent example was theoffering launched by Pavaso and SigniaDocs), what is new is that nowlenders have a really good reason to use them. DocMagic has been astrong competitor in all things electronic and document related forsome time. It offers its eSign functionality as part of the deal for free.
Nationwide Title Clearing (NTC) offers WhitePaper on the state of eRecording
For years, we’ve assumed that the biggesthurdle to electronically recording the
mortgage-related documents was theCounty Recorder. After all, governmentbureaucrats are not known for beingtechnologically advanced. NTC’s WhitePaper goes into the Recorder’s Office to
find out exactly what these professionalsthink about eRecording, and it might surprise
you. The paper offers a look at the hurdlesremaining, from the perspective of the recording professionals.
Ernst Publishing Company gets traction with itsSettlement Agent Gateway offering
One of the unanticipated consequences of theCFPB’s TRID rule (and there are have been
quite a few) was that lenders suddenly hadreason to end relationships with smallersettlement agents who could not becounted on to provide accurate fee data.Without accurate numbers, the lender
can’t deliver a Loan Estimate that has anyhope of lining up with the Closing Disclosure
(CD), which could lead to re-disclosure andfailure to meet closing deadlines. Naturally, this scares real estateagents to death. The result was that many lenders began to pull theirbusiness away from smaller agents and concentrate it on larger firmsthat could provide the data they needed. Ernst’s Gateway allows anyagent to negotiate and certify fees in advance of the CD. The realbenefit is that local LOs don’t have to lose their existing referralnetworks.
eLynx integrates with Lendtech Data recently inanother move that was likely spurred on byTRID-related consequences
This integration enables lenders utilizingeLynx’s Expedite ID compliance solution to
exchange property, fee and loan dataelectronically with the 3,000 settlementservice providers in 47 states usingLandtech Data’s XML Real EstateSettlement System. The companies say
the resulting bi-directional exchange ofdata simplifies the collaboration required for
lenders to generate the CD mandated by TRID.
Cloudvirga launches intelligent MortgagePlatform (iMP)
A tech firm founded by seasoned lenders andtech developers promises to deliver digital
mortgage and has already delivered $5billion worth of loans. While there is noshortage of LOSs in this space (youcould build an entire publication justaround them), we are starting to see a
new generation that gives consumers thesense that they have more control. I don’t
think they actually do yet, but these newsystems are paying more attention to what today’s consumers wantto see on the screen and how they want to interact with lenders. Weexpect to see a number of loan origination systems move in thisdirection in the near future. A case in point is a new offering from ArcSystems and Mortgage Dashboard founder Jorge Sauri, which alsolaunched this month.
TeleVoice launches TeleVoice InsightTeleVoice has launched TeleVoice Insight, a call
recording solution designed to ensurecompliance, improve customer serviceand allow servicers to quickly resolvecustomer disputes. Now, we’ve had callrecording in our call centers fordecades, but we expect to see more new
software that is intended to focus moreon what matters to industry players—both
originators and servicers—today, which iscompliance, the borrower’s experience and dealing with borrowercomplaints. The TeleVoice system is already integrated into the BlackKnight MSP platform, which should add more power to that venerablesystem.
Innovation News RoundupA look at some of the news we expect have a big impact on the industry in the near future. Given that this is our inaugural issue and there hasbeen a lot of activity during the first quarter, we can only provide a short glimpse here. In future issues, we’ll try to look deeper into some of theinnovation news that we think matters. You can find the original releases for all of these items online.
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BestBorn Business Solutions announces a lite version of its loan level accounting software
The firm was pulled into our industry when alender asked the Microsoft Dynamics NAV
developer to customize an accountingpackage for them. The product turned outso well that the company took Loan Visionto market and today has more than 35lenders on the system, including wholesale
mortgage giant United Wholesale Mortgage(UWM). The lite version will make a scaled
down version of the software available to eventhe smallest lender, who today has to rely on spreadsheets to do workthat QuickBooks and similar general accounting software cannot.
To get news of your recent innovation into this space in future issues,please contact me, NMP Special Reports Editor Rick Grant, by e-mailat [email protected]. Our industry has always been prettygood at avoiding innovation unless it is absolutely necessary. Thereare plenty of reasons today that moving on to what’s next is both acompetitive and a compliance-related mandate. Let us know why yournews is important and why it points to what’s next for our industry.
Platinum Data connects lenders and appraisersPlatinum Data has released RealView QB
(Quality Bridge), an appraisal qualitytechnology that creates a link betweenlenders and appraisers. As thegovernment continues to push formore valuation data deliveredelectronically, it’s useful to have
electronic tools that can help lendersand appraisers work together from order
to fulfillment. QB is a workflow feature inRealView, Platinum Data’s appraisal quality technology. Accordingto the company, it enables a single, centralized system of recordfor appraisal quality control. Users can invite virtually any relevantparty to access their appraisal quality and underwriting process ona limited, user-defined basis, which I suspect regulators andinvestors will appreciate. This is another excellent example ofinnovation that gets the industry closer to what their upstreampartners and regulators are asking for.
As we working through the planning process for putting this new specialsection together, we thought long and hard about the kinds of companies wewere hoping to attract as sponsors and write about as examples of leadinginnovators. While we found plenty of examples of companies worthy of writingabout, we also saw some stand out examples of innovation in action.
I’m not talking about technology, per se. Automation and industrytechnology is often a requirement when we want to radically improveprocesses. But there are already some very good industry technology awards.We wanted to focus more on the thought process behind the technology.
For instance, there are many good loan origination systems (LOS) on themarket. There will likely be more introduced in the near future and some ofthem will be very good, from a technological standpoint. But will they just be aslightly better, faster or cheaper method of moving data around the same waywe always have, or will they fundamentally improve our processes? The latteronly comes as a result of careful thought and analysis. That’s what we want torecognize with the NMP Next Awards.
Watch the NMP Daily and NationalMortgageProfessional.com forinformation about the nomination process. We’ll be making our decision earlythis summer and handing out the awards this July in New Orleans as part ofthe Ultimate Mortgage Expo. Stay tuned for more information and get ready totell us about how your team is thinking about the future. It might just win youan award.
NMP Next Awards
Rick Grant is NMP special reportseditor for NMPNext and NationalMortgage Professional Magazine.He may be reached by e-mail [email protected].
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There are a number ofdifferent appraisalmanagement softwaresystems on the markettoday. They all deliversome form of
technology automation, with somevendors doing a more extensivejob than others. These systemshave various bells and whistlesand typically automate primaryfunctions such as vendormanagement, appraisal ordering,assignments, tracking and deliveryto the GSEs Uniform CollateralDeliver Portal (UCDP). And come
June 27, the FHA will mandate theuse of its Electronic AppraisalDelivery (EAD) Portal, which themajority of appraisal softwaresystems will also handle for you.
Most systems offer somedegree of automation that canassist in making your internalprocesses more efficient.However, many platforms stillrequire manual input from usersin order to move the processalong and initiate various actionsto complete appraisal orders.Once a manual element isintroduced, the process is slowed
and of course when any humanelement is involved, there is apropensity for errors. This candelay loan closings and errorscost time and money to go backand correct.
The implementation of aseamless and workflow-drivenappraisal process can remedy theaforementioned. To facilitate sucha smooth process, your valuationmanagement software mustcontain an embedded “workflowengine” within the core platform.The engine applies customizablebusiness rules that essentially
serve as a well-orchestratedconductor that meticulously auto-triggers time sensitive events andactions. This removes manualtouch points, eliminates dataerrors, reduces costs and moreeffectively manages compliance.
Examples of tasks that aworkflow engine can automateare customized e-mails or filedelivery to recipients when anorder status changes, schedulingtimed auto notifications andreminders, updating order statuswith a set time interval betweenstatus updates or occurrences,
Achieving a Truly SeamlessWorkflow-DrivenAppraisal ProcessBY VLADIMIR BIEN-AIMÉ
automated real-time reporting,and automated GSE and FHAdelivery, to name a few. Further,triggers can be set at specificareas within the workflow suchas initiating data analytics,collateral reviews, scoring, etc.
There are a great deal ofdetails and complexities in theappraisal process that need to becompleted on time in order toprevent costly delays, and ofcourse complete themcompliantly. Without a workflowengine automatically knowingwhen, where and how to call the
shots, tending to importantdetails is tough to stay on top of.
A workflow engine is apowerful and importantcomponent to valuationmanagement software that manydo not know exists. There is somuch it can accomplish withoutthe need to involve humanintervention. When a process ispeppered with so many details,timelines can be missed, errorscan be made and non-compliance can become a factor.
The appraisal process used tobe a simpler part of the mortgage
lending chain. But over the years,it has come to involve moremoving parts in addition to andthe regulatory landscape hastightened significantly withchanging state and federal rules.It’s become much harder tomanage and stay on top.
More and more lenders and
appraisal managementcompanies (AMCs) are turning toworkflow engines to automateappraisal workflows, achieving acompletely seamless, workflow-driven appraisal process fromcradle to grave. It’s where thenext generation of valuationmanagement software is headed.
Vladimir Bien-Aimé is CEO and co-founder of Global DMS, a pio-neer of Web-based appraisal process management software anda provider of technologies used across the mortgage process. Hehas worked in the appraisal industry with Appraisal.com/Day OneAppraisal Software as a systems engineer, and in informationtechnology for the Department of Environmental Protection.
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Almost 19 percent ofmortgage lenders andoriginators respondingto a recent survey saythat they continue tostruggle with the
implementation of the TILA-RESPAIntegrated Disclosure rule, whileanother 52 percent of therespondents, although finding theimplementation to be disruptive totheir organizations, believe theyhave been able to adapt.
The survey and forthcomingreport are being co-produced byWFG National Title InsuranceCompany and National MortgageProfessional Magazine. Almost 600lenders and originators respondedto the initial round of questions, withanother 700 chiming in for asupplemental questionnaireregarding the impact of TRID ontheir operations. The final reportsummarizing the findings isexpected to be released in May.
According to the surveyresponses, almost 63 percent of therespondents characterized theimpact of TRID as some level of“surprising,” although 48 percentfound the impact to be “somewhatsurprising.” As to practical impact,almost 35 percent of therespondents estimated their averageclosing times to have beenextended four to seven days longerthan pre-TRID closing periods.Almost 16 percent felt that TRID hasextended their average time to closeby as much as one to two weeks.
Almost 60 percent of thoseresponding to the survey identifiedthemselves as mortgage lenders(banks, credit unions and non-banklenders), while another 25 percentidentified as mortgage brokers ororiginators. Respondents who didnot qualify as originators did notparticipate in the remainder of thepolling. The intention of the surveywas to quantify the initial impact ofwhat many consider to be a muchstricter regulatory environment in theindustry since at least 2013,according to Steve Ozonian,
president and chief operating officerof Williston Financial Group.
“When we initiated this effort,there was little hard data availableon the impact of tighteningregulation on the cost to originate aloan,” said Ozonian. “As an industry,we suspected that new regulationsand requirements, such as TRID,were making it costlier to originate,but we didn’t have hard evidence atthe industry level. We’re now seeingthat kind of information becomeavailable, which will help us as anindustry to move forward.”
The survey also addressed thelarger issue of the collective effect ofthe stricter regulatory environmenton costs and operations. Forty-fivepercent of the respondentsestimated that stricter compliancerequirements have increased theiroverall cost to originate a mortgageby between 11 and 30 percent since2013. A whopping 74 percent ofrespondents asserted that theiroperations have been forced to addresources—employees andconsultants—dedicated to theinterpretation and implementation ofrequirements promulgated byfederal and state regulators since2013.
“The rising cost to originate, nomatter the intention of the newregulations, is already forcingdramatic changes in who willoriginate; to whom they will lend andwhat kinds of loan products they’llmake available,” said Ozonian. “Butit’s not enough to simply complainthat regulation is making it harder tomake home loans available toworthy consumers. Now, we seemore metrics that make the point.”
The upcoming report is alsoexpected to include analysis on theperceived cost of compliance onstaffing; management focus and thecost and use of technology to adapt.Details are expected soon on theexact date the report will beavailable, and it will be offered byboth WFG National Title andNational Mortgage ProfessionalMagazine.
Nearly One in FiveOriginators Still Strugglingwith
SurveySays TRID
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How does UWM go from Submission to Closing in 20 days or less? See for yourself why we’re the #1 wholesale lender in the nation.
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YOU + UWM = YOUNITED | 800.981.8898 | UWM.COM
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UCLOSEThe power to close in just six clicks with money at the table in less than an hour. Time to celebrate — and move on to your next loan.
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visionaryorganizations 2016
Every once in a while, an organization comes along, anorganization that sets trends, remains ahead of thecurve and sets a bar by which all others strive to attain.
This month, we take a look at a sampling of these organiza-tions, organizations that we have deemed “Visionary” for their
inspiration to always strive to improve and go above andbeyond to assist their clients, but ones that have successful-ly navigated an ever-changing mortgage industry market-place. We present to you the following movers and shakers inthe industry and the leaders behind them.
How the company started: For 17 years ACC Mortgage Inc. has beencommitted to bettering the financial positions of its customers, businesspartners and communities. Headquartered in Rockville, Md., thisphilosophy-driven lender has been owned and operated by its foundingpartners since day one. With a tried and true lending algorithm, ACCMortgage, closes the loans that others may see as a financial risk.Experiencing significant yearly growth, ACC Mortgage, Inc. is now aleading portfolio lender.
Business partners Robert Senko and Stuart Wolpoff founded ACCMortgage in 1999 to provide loans to an underserved market. Their visionestablished an organization that provides high-touch service, easy tounderstand programs and competitive pricing for residential andcommercial customers.
In April, 2014 ACC Mortgage completed a two-year process, earningtheir Community Financial Development Institution (CDFI) certificationfrom the U.S. Treasury. The CDFI Fund promotes access to capital inunderserved communities across the nation.
How the company has changed the mortgage industry: Our money,our rules! ACC is a portfolio lender specializing in underserved residentialand commercial markets. The company has expanded into 14 states,coast to coast. ACC has developed a proprietary algorithm to offeruniquely tailored solutions for underserved clientele, offering acomprehensive suite of loan products and financial services. Thecompany’s success and growth is directly attributable to their uniquelending philosophy, commitment to the communities they serve andability to close quickly.
All loans are process, underwritten, funded and serviced at theirRockville location. Loans are processed expeditiously, communication is
clear and friendly. ACC closes loans that may be seen as higher risk byother financial institutions based on a simple and effective lendingphilosophy: Benefit to the customer and the community; capacity torepay; and fair market value.
The company offers the following loan products to residential andcommercial customers: Foreign national clients; ITIN customers; lowcredit score debt consolidation; second chance purchase; commercialand investor loans.
ACC is committed to bettering the financial position of its borrowersand promoting economic development and offers the following servicesand benefits in support of this mission: Financial counseling; CDFI-certified; free credit reports; lending partner programs; and onlinefinancial calculators and resources.
ACC Mortgage holds a Community Financial Development Institution(CDFI) certification from the U.S.Treasury. The CDFI Fund helps promoteaccess to capital across the nation. As aCDFI, ACC is able to further itscommitment to putting community firstand lending to and supporting those noteligible for traditional loans.
The company’s unique structure andlending philosophy, combined with itssuperior customer service, communi-cation and responsiveness has led to yearover year growth in a growing market. Aleader in the private money-lending field,ACC will continue to expand services andofferings.
WeApprovedLoans.com
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How the company started: Alight Inc. was founded in 2006 by RandHerr, the creator of Pillar Corporation (a tech start-up that was subse-quently acquired by Hyperion and Oracle), with an eye toward reinventinghow companies run enterprise financial management. A pioneer in thefinancial planning and analysis space, Rand believes that financial man-agement should be done in real-time, all the time, with input from man-agement and teams in all parts of the enterprise, from CEO and CFO, tooperations, technology, marketing, sales and HR. And that those inputscould provide a real-time view on the financial and operational health ofthe enterprise. Alight spent the beginning of its history in intensiveresearch and development, leading to its current technology platform andproduct lineup that spans a number of different verticals, including mort-gage, mining and technology.
How the company has changed the mortgage industry: Alight ischanging the way businesses are run. Our applications let executivesmanage the future by comparing multiple scenarios and taking action inreal-time. We’re doing this one industry at a time. Alight MortgageSolutions provides real-time, industry-specific enterprise financial man-agement applications to the mortgage banking industry.
The roots of Alight Mortgage Solutions are firmly planted in the techsector and in mortgage banking. We understand how to improve the waymortgage banking businesses are run and we have the technical expert-ise to make it work.
Alight Mortgage Lending, is the mortgage industry’s only applicationfor real-time, multiple scenario analysis under any market conditions. Itallows management teams to put their hands on critical financial andoperational information from anywhere in the enterprise, and then evalu-ate multiple courses of action and the potential financial ripple effects on
pro-forma operating and financial metrics including P&L, cash flow andbalance sheet.
Alight provides real-time, any-time access to metrics that matter:Interest rate changes and the effects on warehouse loans, staffing, etc.;change in loan volumes or the mix between purchases and refinances;optimal staffing levels, including productivity and future workload; prod-uct profitability; and potential impact on P&L and cash positions based onshifts in the industry.
Alight Mortgage Lending connects all the critical, live event-driveninformation from across the enterprise–including data from your ERP,LOS and G/L–and lets management run limitless what-if scenarios toevaluate the potential ripple effects that changing market conditions andbusiness decisions will have across the enterprise, before, during andafter events take place. Delivering up-to-the-minute intelligence to keymetrics-driven data from across the enterprise … that means running thebusiness from anywhere, any time and any device. Critical, decision-mak-ing information isalways availableand at the fingertipsof those who needit most. Anywhere,anytime, any de-vice. That’s some-thing only Alightcan do.
Alightinc.com
How the company started: Dedicated specifically to providingalternative lending solutions, Angel Oak Mortgage Solutions began in late2013 as a small Wholesale Division of Angel Oak Home Loans. The firm’sfounders identified a need for different types of loans–such as non-primeand Alt-A mortgage programs–in the market as they were not generallyavailable at the time. Angel Oak Mortgage Solutions separated fromAngel Oak Home Loans in October of 2014, and has continued to growrapidly since. Originally licensed in only seven states, Angel OakMortgage Solutions has expanded to 25 states as of March 2016. Thefirm has tripled its non-agency production each year since inception andcontinues to establish itself as the market leader in the non-prime spaceby providing specialized mortgage solutions for brokers and consumerswith unique flexibility when applying for home loans.
How the company has changed the mortgage industry: Angel OakMortgage Solutions has played a part in the evolution of the mortgageindustry since late 2013, when the firm first began offering its non-agency, specialized mortgage products. Since then, Angel Oak hasfocused primarily on educating the entire industry on “the new sub-prime”and other alternative mortgage solutions for consumers.
The new sub-prime—or as we refer to them, non-prime/non-qualifiedmortgage/non-agency/alt-A—products are sensible and safe options forborrowers who would not generally qualify for agency programs. Thesafety of these programs is inspired by three main concepts: Ability-to-Repay (ATR), Appraiser Independence Requirements (AIR), and “skin inthe game.” Despite popular belief, ATR applies not only to agencyproducts, but to all products provided by Angel Oak Mortgage Solutions.AIR ensures that the loan-to-value (LTV) that we lend on is fair andaccurate. And, finally, with “skin in the game,” borrowers are required to
make at least a 10-20 percent downpayment for all loans, as borrowersare significantly less likely to walk away after putting so much equity intotheir home.
Since 2013, the market has taken off. Lenders and borrowers arecatching wind of non-prime product availability, fueling supply anddemand for non-prime products. In 2015 alone, Angel Oak MortgageSolutions closed loan volume more than tripled 2014 volume, and itsnetwork of broker companies has more than doubled. Angel OakMortgage Solutions has proven tobe the unrivaled expert andmarket leader in the non-primemarket, and will continue to bringmuch-needed liquidity back to theU.S. mortgage market.
AngelOakMS.com
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How the company started: Caliber Home Loans Inc. has experiencedtremendous growth since 2008. And we’re not stopping now. Thecompany that exists today was created in 2013, when Caliber FundingLLC and Vericrest Financial Inc. merged to create Caliber Home LoansInc., a full-service mortgage banking company.
One of Caliber Home Loans’ predecessors, Caliber Funding, came intoexistence when Caliber’s parent company acquired legacy Bear Stearnsorigination assets together with its production platform. The business wasrebranded to Caliber Funding LLC. Our parent company also acquired theCIT Group’s home lending and servicing operation unit in 2008, alongwith $9 billion of mortgage and consumer assets. This entity wasrebranded Vericrest Financial. In August 2013, Caliber Funding becameCaliber Home Loans.
How the company has changed the mortgage industry: Two majorfactors in Caliber Wholesale’s vision are a sales-centric corporate culture,combined with seeking new ideas from our wholesale account executivesand clients to improve our products and services. Combined withCaliber’s role as a dedicated national mortgage lender, Caliber Wholesalerose to number three in broker originations in 2015–a ranking it hasretained ever since. Broker originations have increased by over 78percent over the past 12 months*.
Another industry-changing strategy is the development of Caliber’sPortfolio Lending Suite. These non-traditional loan products are designedto serve qualified borrowers who have the documented ability to repay amortgage, but who may not meet the requirements for Agency productsdue to past credit issues or traditional investor/Jumbo guidelines.
Caliber’s wholesale account executives are highly-experienced,knowledgeable lending professionals. They are supported by a team of
dedicated operational support staff within Caliber’s Regional Operationscenters.
Broker Associates enjoy perks known within the industry as TheCaliber Advantage. They include: Access to H2O, Caliber’s proprietary,state-of-the-art originations system; a wider array of loan options,including non-traditional loans developed by Caliber’s own ProductSupport executives; support from account executives and dedicatedcustomer relationship managers; the freedom to issue TRID disclosuresfrom their own systems, or Caliber’s; the advantage of choosing their owntitle agents and companies; and the option to deliver status updates bytext or e-mail automatically via H2O.
To apply to become a broker associate or for more information, [email protected] or visit CaliberWholesale.com.
CALIBERHOME LOANSWholesale Lending
CaliberHomeLoans.com
How the company started: CIVIC has a short history, but a well-capitalized pedigree. CIVIC was established in 2014 by its parentcompanies, Wedgewood and HMC Assets LLC, to meet the needs of realestate investors that did not fit within traditional lending criteria. From itshumble start in mid-2014, CIVIC has grown quickly, closing 441 loans in2015 with a total loan volume of $138 million.
How can we do that? CIVIC is a direct lender with local control. Weunderwrite our own files and provide our own appraisals which makes ourloan process transparent and fast, closing deals in as little as four to 10days.
How the company has changed the mortgage industry: CIVIC deliverscommon-sense lending and focuses on building strong relationships withits clients, but its real point of difference is in its ability to have localcontrol of the lending process. CIVIC originates one- to four-year non-owner-occupied investor loans that are competitively priced and fundedon tight timelines by leveraging Wedgewood’s proprietary asset valuationunderwriting platform. We have teams, both in-house and in the field, whoare experts in property appraisals, rehab cost assessments, andestimating market values.
Furthermore, CIVIC, with affiliated companies Wedgewood & HMCAssets, offers an exclusive online marketplace with hundreds of REOsand short sales, solving one the biggest problems for real estateinvestors—finding inventory to buy. Through the Preferred InvestorProgram, investors can find cooperative short sale listings and pre-listREO that cannot be found anywhere else. Additionally, investors getdirect access to the lender to negotiate and streamline the short saletransaction, taking minutes rather than months to negotiate and closedeals.
From navigating rigid lending guidelines to dealing with lengthy closingtimes, traditional banks can be a pain to work with. At CIVIC, we provideyou access to the private money you need to fund your real estateventures quickly and efficiently. With a specialized set of marketcompetitive products, CIVIC makes possible the ability to acquire multipleproperties and gives investors leverage over their cash position.
CIVICFS.com
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How the company started: Class Appraisal started in 2009 in responseto government legislation that created a need for AMCs to help managethe appraisal process for lenders and banks.
Class started with a plan to provide appraisal services nationwide andstarted with a few small clients. We were fortunate that several of theclients we started working with grew quickly, enabling us to grow alongwith them.
Since 2009, Class Appraisal has grown into one of the top appraisalmanagement companies in the country. We are currently working withfive of the top seven wholesale lenders in the country.
How the company has changed the mortgage industry: ClassAppraisal has changed the way that appraisal management companiesare viewed in the mortgage industry. We’ve built a culture internally thatfocuses on creating a friendly, upbeat environment for our team membersto work in. Our internal culture helps foster a special relationship betweenour team members and our clients and our appraiser partners.
Our clients often express to us that they feel more like businesspartners as opposed to clients. Each client has a dedicated team built outthat handles their orders from start to finish to ensure consistency andcontinuity. Because we are a nationwide company, providing access andassistance to clients in all time zones is essential. We staff accordingly tomake sure that our team is always available to assist during normalbusiness hours for clients on the East Coast and the West Coast.
The biggest difference between Class and other AMCs is therelationships that we have with our panel of appraisers across thecountry. The appraiser population has been gradually shrinking the pastfew years, and it’s more important than ever to build and maintain strongrelationships with the professionals that are completing appraisals for our
clients. We have implemented creative benefits for our appraisers like 24hour quick-pay, an Appraiser Help Desk, and a Preferred Plus Panel thathave helped us to make Class a desirable business partner for appraisers.This helps translate into faster turn times, more accurate reports, andessentially more closed loans for our clients.
Class has also become a leader in the technology sector in theindustry. We have created a proprietary TRID Calculator that has changedthe way that our lenders disclose appraisal fees. We also have built aninteractive dashboard thatallows our clients to accessour performance metrics inreal-time by state or region.
ClassAppraisal.com
How the company started: DocMagic’s president and CEO DominicIannitti founded DocMagic Inc., in 1988 as a local doc prep firm. Beginningimmediately with an unheard-of 24-hour delivery system and followed upwith custom form design, the company continued to innovate with theintroduction of DocMagic software, the first auditing system, a fullcompliance department, eServices and on to mobile technology.
Today, DocMagic is called upon by lenders to provide cutting-edgeservices that assure compliance and increase efficiency while reducing loanproduction costs.
DocMagic has enjoyed steady growth over the years by regularlyexpanding its offerings to accommodate industry demand. EverythingDocMagic does is geared toward meeting the needs of clients in a way thatsimply could not be done without a vision towards the future and theconstant evolution of our technologies.
How the company has changed the mortgage industry: DocMagic Inc.has become the leading provider of fully-compliant loan documentpreparation, compliance, eSign eDelivery, eClosing and eService solutionsfor the mortgage industry. The company’s extensive team ofcompliance experts and in-house legal staff consistently monitorlegal and regulatory changes at both the federal and state levels toensure accuracy.
DocMagic has grown its solution set into facilitating a true end-to-end eMortgage process, among its other robust list of widelyused software products. Most recently, the company launched itsnew total eClosing solution, which digitally transforms the entiremortgage process from initial eDisclosure to final eClosing andinvestor eDelivery from start to finish.
In order to effectively address TRID, DocMagic developed
SmartCLOSE, which is a collaborative closing portal that offers a secure,centralized online environment for lenders, settlement providers, and otherassociates to share, validate, audit, track and collaborate on documents,data and fees. DocMagic’s Audit Engine runs continuously behind thescenes to ensure compliance and everything is accessible withinSmartCLOSE, including the eSigning and eDelivery of documents. To date,SmartCLOSE has been well-received by users with rapidly increasingadoption.
Also significant is that in 2016 DocMagic introduced a new rep andwarrant offering that guarantees TRID compliance of up to $5 million. Theinsurance-backed guarantee is the most far-reaching compliance guaranteeof its kind in the mortgage industry. It is designed to provide peace of mindto lenders when it comes to compliance with the TRID rule.
DocMagic is constantly innovating, enhancing existing products, launch-ing new solutions, and forging significant strategic partnerships that havecollectively made it the leader in document preparation, eClosings,eMortgages, and other eServices that bring newfound efficiencies to themortgage industry.
DocMagic.com
How the company started: Founded in 1997, Ellie Mae is a high-techmortgage software company with old-fashioned values. Nowprocessing almost a quarter of all U.S. mortgage applications, EllieMae ensures compliance and high quality. Ellie Mae founders SigAnderman and Limin Hu started the company with one goal: to usetechnology to reduce friction, paper, time and cost. They neverimagined this simple idea would grow Ellie Mae to what it is today,supporting thousands of clients and millions of mortgage transactions.
How the company has changed the mortgage industry: While theindustry has changed since the company’s founding almost 20 yearsago, Ellie Mae’s mission to automatemortgages so lenders can achieve compliance,quality and efficiency hasn’t. Ellie Mae iscommitted to innovating how mortgageprofessionals work together to originate,process and close loans. Ellie Mae’sEncompass software gives the mortgageindustry an all-in-one, end-to-end enterprisesolution that handles all functions involved inrunning the business of originating mortgages.Ellie Mae’s Encompass clients save on average$231 per loan, receive 57 percent ROI in lessthan three months, and avoid up to $75,000 inpotential compliance costs. Ellie Mae nowprocesses almost a quarter of U.S. mortgageapplications, and is continually recognized asan innovator in the field. The company hasbeen recognized by Forbes as one of
America’s best small companies, and has received various industryawards for its Encompass platform.
EllieMae.com
How the company started: In 2006, the company Aaron VanTrojenbegan his mortgage career with was sold to a large mortgage bankingplatform. He refused to work for a large bureaucratic, corporate,mortgage bank.
In 2007, VanTrojen formed Geneva Financial LLC as a multi-statelicensed mortgage banker. In 2008, Geneva began closing loans. Due tothe Great Recession, and no “seed” money, Geneva Financial LLCprimarily brokered loans during its infancy.
After a couple of challenging years, Geneva Financial LLC obtainedwarehouse lines, and began banking loans through correspondentchannels.
Geneva Financial is now licensed in 26 states and growing, andemploys approximately 250 people. Geneva now sells to a dozen-pluscorrespondents through mandatory delivery. Geneva Financial is hiringprofessional loan originators and branch managers nationwide who arelooking for an entrepreneurial opportunity.
How the company has changed the mortgage industry: GenevaFinancial was created to be a mortgage company for the employees firstwith a vision to treat the loan originator as the client.
When the financial crisis was in full swing in 2008, mortgage brokerswho traditionally paid the most with the greatest loan product selection,closed their doors in record numbers, and many of those left standing fledto mortgage banking platforms. The mortgage bankers that had survivedthe near collapse of the entire industry capitalized on this shift frombrokering to banking. Some driven by necessity, and others by greed,many mortgage banking platforms increased margins and loweredcompensation to those that generated the originations.
Geneva Financial formed during this time of industry makeover. With
no legacy issues, and very little overhead, Geneva Financial leveraged theonly commodity it had: Originators. Pay the originator the maximum legalcompensation, while delivering a competitive price to the homeowner.
Geneva Financial focuses on originating and closing “good” loans. Weare exceptional at the originating, processing, underwriting and thefunding of “good” loans. Quality loans for quality borrowers: Agency,government, jumbo, and even non-QM. Geneva’s focus is not on loantype, but the quality of loan originated; and also the person originating theloan.
Geneva Financial stills pays nearly twice the industry average to itsloan originators, while delivering a more competitive price than thecompetition. It does this by efficiently closing quality loans that don’t gobad.
And there is the all-important intangible … there are a thousandmortgage companies to work for. While Geneva pays more, iscompetitive and fast, those that choose to work with us are treated as ourmost valuable asset… as they are. Theindustry could usemore heart. That issomething Genevaoffers as well.
GenevaFI.com
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How the company started: Established in 1999, MLinc Solutions bringsexpertise and innovative solutions to the settlement industry in thestructuring of strategic relationships between service providers. Mark LMeyer (pictured below), founder and CEO, has always believed thatcomplementary relationships make us stronger, both personally andprofessionally. Having previously spent several years operating a nationalmortgage originator with affiliations and service arrangements involvingdozens of key industry players across the country, Mark developed acommitment to engineering business associations that are consumerfriendly, business-smart and compliant (aka “Strategic Relationeering”).
How the company has changed the mortgage industry: MLinc’sAffiliated Business Arrangement (ABA) and Services Agreementssolutions and related transformative offerings have brought hundreds ofcompanies the independent expertise and diligence needed toconfidently forge thousands of mutually-beneficial business relationshipsthat are compliant with the Real Estate Settlement Procedures Act(RESPA). Specifically, the company’s ABA and Services AgreementsSolutions provide tools, templates and videos for helping clients evaluate,sell and set up strategic relationships. And, MLinc’s industry-leadingComplyMSA, ComplyWSA, ComplyEvents and ComplyOffice offeringshelp companies value and verify services provided by businessassociates, including marketing activities, Web advertising, sponsoredevents, and office leases, to enhance RESPA compliance.
Collaboration between settlement providers is an important catalyst tocreating a better homebuying process. In fact, properly structuredrelationships between complementary providers to a home purchase areone of the most important contributors to a buyer’s positive experience.Opportunities for compliant collaboration continue to evolve as
technology, buying behavior and regulatory interpretations change overtime. MLinc helps clients stay on top of RESPA interpretations, andcontinues to innovate to help clients implement strategic arrangementsthat result in a more predictable, convenient, efficient and cost-effectivepurchase transaction for all.
MLinc Solutions may be contacted by e-mail [email protected] or call (866)241-6802.
MLincSolutions.com
How the company started: Headquartered in Salt Lake City, Utah,Primary Residential Mortgage Inc. (PRMI) was founded in 1998 byDave Zitting, Jeff Zitting and Steve Chapman. PRMI has grown toinclude Tom George, COO and Burton Embry, CCO in its executiveteam and evolved into a nationwide, multi-billion dollar operation withover 2,000 employees and nearly 300 branches. The company islicensed in 49 states and serves all segments of the market. PRMI isa privately-held company that focuses primarily on traditionalresidential loan products. For information on PRMI, please visitPrimaryResidentialMortgage.com.
How the company has changed the mortgage industry: PRMI is alarge national mortgage bank founded by loan originators for loanoriginators. PRMI redefined the corporate/loan originator relationshipby creating partnerships that respect local domain knowledge and thepower of choice so vital to the success of PRMI’s originators. Thisinnovative business model of empowered operators results in a best-in-class experience for the borrower. We are actively engaged as arespected thought leader positively influencing industry change, andrebuilding consumer trust in real estate finance. We are also a leaderin launching breakthrough technologies, utilizing mobile strategy andBig Data analytics to revolutionize the real estate finance transaction.Combining a framework of regulatory compliance and an originator-friendly business model with strong marketing support and industry-leading technology have placed PRMI at the forefront of mortgagelenders.
PrimaryResidentialMortgage.com
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http://mortgagenewsnetwork.com/visionary-organizations-mlinc-solutions
How the company started: Thirty years ago, PrimeLending opened itsdoors with a staff of 20 people in Dallas, Texas. Today, the company hasmore than 2,500 employees working in branches across 41 states,serving the needs of homeowners throughout the country. Since 1986,PrimeLending has helped more than 500,000 families with theirhomeownerships goals, consistently earning a 96 percent customersatisfaction rating (based on its customers’ rating of loan officers) andranked nationally as a top 10 purchase lender by MarketTrac (January-December 2015).PrimeLending is proud of its numbers, but is even more inspired by itstrack record of award-winning employee satisfaction. In 2015,PrimeLending ranked fourth nationally among top 10 large companies onthe Great Rated! People’s Picks: 20 Great Workplaces in FinancesServices. We were named one of the “100 Best Workplaces for Women”and ranked 11th among the “50 Best Workplaces for Camaraderie,” bothby Great Place to Work and Fortune.
How the company has changed the mortgage industry: Over theyears, we’ve experienced countless innovations and changes—theemergence of smartphones and mobile apps, more stringent federalregulations and changing perceptions about traditional banks, to namejust a few. But more things have remained the same—integrity ispriceless, personal service makes a difference and Americans still dreamof owning a home. We are proud to have been a stable, reliable lendersince 1986.
Part of our approach to serving the changing needs of home buyers isto provide technology with a warm touch. We continually invest indeveloping the most secure, innovative and efficient systems andprocesses. From its Web-based application process, to mobile apps for
consumers and business partners, to customized home loan scenarioproposals, we leverage innovation to help our customers make smartdecisions. However, with every new automated step or enhancement, wenever lose sight of the value of personal service provided by ourexperienced, knowledgeable loan officers.
Without a doubt, our talented, dedicated employees set us apart in theindustry. We know having a passionate, motivated team that cares aboutour customers, business partners and each other is our greatest asset.We work together to have a profound and positive impact on the lives ofall we serve. We are known for a spirit of service, heart, respect andpurpose throughout the organization. Collectively, we are focused oncaring more, dreaming bigger, setting our goals higher and achievingthem. It’s the secret to PrimeLending’s longevity and success, and thereason so many homebuyers trust us to guide them through the mortgageprocess.
PrimelLending.com
How the company started: The leaders of REMN Wholesale haveworked in many facets of the industry before starting REMN. Some were,at one point, brokers and witnessed the frustrations as a broker partnerfirst hand. From these experiences, they created a company built on whatmade sense. To REMN Wholesale and its partners, the key is the value oftime, illustrated by our same day turn times.
How the company has changed the mortgage industry: The REMNWholesale mission is, and always has been, to improve the brokerexperience. By doing so, we have really set the bar for expectations andwhat brokers have come to rely on in their lender partners. No otherlender can duplicate our customer service, closing department, or sameday turn times. Pair that distinction with our education platform andproduct portfolio, and we have developed a broker experienceunmatched and well sought after.
REMNWholesale.com
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How the company started: Secure Insight was originally founded asSecure Settlements and launched in January 2012 as the first mortgageindustry vendor management firm focused on settlement agent risk. Thecompany’s risk evaluation and monitoring technology was developedafter more than five years of research and development in conjunctionwith warehouse banks, lenders, former regulators and risk analysts atLloyds. The focus on data evaluation, risk rating and ongoing monitoringin a shared database was a unique approach to a serious problem andthe first of its kind. The privately-owned company’s founders includeprofessionals in the law, banking, title, and insurance fields.
How the company has changed the mortgage industry: Secure Insightmade the term “vetting” a term of art in the mortgage industry. Before SSIwas launched in 2012, the evaluation and monitoring of counter-party riskwas disjointed, incomplete and very rarely regulated. Despiterecommendations from FNMA, OCC, NCUA and others, banks, mortgagelenders and credit unions generally incorporated little or no vendormanagement process in their operations platform. When they did italmost always was entity-based, and done once and forgotten. With theissuance of new rules by the CFPB in April 2012, the industry graduallybegan to acknowledge the importance of managing vendor risk. SSI wasparamount in promoting this need for both lender risk management andconsumer protection. In its early years 2012-2013, the company survivedsignificant push-back from associations and vetting subjects who werestartled to discover that a private company was asking personalquestions about their business and staff in an effort to assure lenders andconsumers that they were safe from the risk of fraud harm. Graduallythrough a process of excellent service, perseverance and education, SSIbecame recognized as an industry standard and its database viewed as
valuable utility for measuring and monitoring risk. Today, SSI hassuccessfully vetted more than 35,000 agents nationwide and servesnearly 100 lenders around the country, helping them manage theirregulatory obligations while protecting them and their customers fromfraud losses. The SSI database has been accessed in more than 1.5million transactions to date as a pre-closing quality control tool. Today,nearly five years after the company’s launch, the SSI motto, “Trust, butVerify!” is accepted as an operational risk goal for lenders throughout themortgage industry.
SecureInsight.com
How the company started: Founded in 1986, United WholesaleMortgage (UWM) is a family -wned and operated company based in Troy,Mich. and operating nationwide. As one of the nation’s largest andfastest-growing wholesale lenders, UWM has an impressive history ofgrowth, innovation and unwavering commitment to its clients. In its earlystages, UWM started out as a bricks and mortar retail loan shop and thenmade the strategic decision to focus on the wholesale side of thebusiness. Since the company started out as a broker, everything we do isthrough the lens of our clients’ best interests. UWM has a rich heritage inchampioning its clients and serves its mission of making dreams cometrue for brokers, borrowers and its team members.
How the company has changed the mortgage industry: UWM hasrevolutionized wholesale lending, transforming a historically commodity-driven industry into a client service model that is focused on championingthe success of its independent broker clients. From creating an insidesales model to developing game-changing technology, UWM prides itselfon helping its clients grow their business. Team members are trainedacross the life of a loan in order to maketheir processes as fast as possible.
Led by President and CEO Mat Ishbia,UWM is run like no other mortgage lender inthe market today. As a former MichiganState basketball player under legendarycoach Tom Izzo, Mat learned invaluablelessons on the court that he has brought tothe team at UWM. He has instilled anattitude focused on championing ourclients, a desire to make every loan a
success, and the ambition to work harder and be better than the daybefore.
UWM’s technology offerings are second to none in the industry. WithTRID affecting the ability of so many lenders to close loans in a timelymanner, UWM’s UClose tool is a major difference-maker–empoweringbrokers to go from clear-to-close to closing in just minutes, and putmoney on the table in less than an hour.
UWM’s game-changing UConnect program ensures that brokers staylinked to their borrowers to enhance repeat business. UWM monitors itsbrokers’ past clients and notifies the broker when their past clients are inthe market to purchase or refinance.
On top of all that, UWM is leading a movement to create moremainstream awareness of mortgage brokers and the wholesale lendingchannel. By championing brokers via national television, radio, digital andprint media, UWM is constantly pressing to raise awareness of mortgagebrokers in the marketplace and educate consumers on the benefits ofworking with a broker.
UWM.com
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How the company started: Vantage Production LLC is the nation’s leadinginnovator of the mortgage-specific technology platform—VIP. VIP empowerslenders to deliver exceptional experiences with pioneering customerrelationship management (CRM), powerful, automated marketing—completewith content, efficient and effective sales enablement and the most accurateMBS market advisory services. Vantage Production’s solutions help more than400 lenders and tens of thousands of individual mortgage loan originatorsthroughout the nation succeed every day in our challenging, dynamic market.
Established in 2001 as Mortgage Success Source, Vantage Production hasmore than 70 employees headquartered in Red Bank, N.J. The company’sdriving force has always been—and remains—to aggressively respond to thedramatic structural and regulatory changes in the industry, including exceedingthe rigorous SOC 2, Type II security requirements. Vantage Production strivesto provide lenders with solutions to accelerate production, operate efficiently,recruit and retain top talent and manage risk.
How the company has changed the mortgage industry: Just as themortgage industry has changed over the past 15 years, so has VantageProduction. What has not changed is the company’s commitment to providingthe highest quality, most effective and innovative solutions that lead our clientsto success.
From the beginning, Vantage Production has been focused on helping themortgage industry adapt to and optimize the opportunities available in a waythat builds value for the lender, loan originator (LO), referral partner andborrower.
Originally founded to serve individual LOs, Vantage Production offeredbusiness-building solutions that allowed LOs to achieve top producer status,including the often-imitated, never duplicated MBS market advisory service,Mortgage Market Guide; the go-to professional development solution,
LoanToolbox and the “set-it and forget-it” automated marketing solution,Platinum Marketing.
With the effects of the Dodd-Frank Wall Street Reform and the ConsumerProtection Act of 2010, the mortgage industry quickly shifted to operate in anextremely tight regulatory environment. Just as the mortgage industrytransformed to be filled with new regulatory guidelines and compliancerequirements, it also had new business models and technology capabilities toleverage.
Vantage Production developed a single, corporately-controlled solution thatallows lenders to adhere to the compliance guidelines through admin controlsand audit support—with complete archiving of marketing and presentations—as well as compete with greater productivity and secure more market share andvolume in this fast-paced, highlycompetitive market.
From mobile solutions to dynamicwebsites to centralized databases toreal-time integrations, VantageProduction provides mortgageindustry leadership and lenders with anenvironment that drives revenueprofitably … while managing risk.
Mortgage lenders will continue toadjust their organizations andworkflows to more effectively andefficiently go to market. Staying aheadof changes, both at a macro andlender-specific level is how VantageProduction meets the needs of themortgage industry.
VantageProduction.com
How the company started: Waterstone Mortgage President & CEO EricEgenhoefer entered into the mortgage lending business in 1997 as aprocessor, and quickly moved through the ranks as a closer, loanoriginator and operations manager. This experience gave him a thoroughknowledge of the loan origination process.
In 2000, he created Waterstone Mortgage as a company focused onsupporting loan originators–a philosophy the organization still upholdstoday. He put industry best practices to work, building the company tosustain rapid growth in a short period of time. As the company grew, itcommitted to supporting its loan originators in producing high qualityloans, with a strong focus on purchase loans. This approach has allowedWaterstone Mortgage to not just survive economic and industrychallenges, but to thrive in spite of them. Today, the company has morethan 600 employees in 19 states, and originates more than $2 billion inmortgage loans annually.
How the company has changed the mortgage industry: With a primaryfocus on supporting loan originators, Waterstone Mortgage is a companybuilt around what these professionals need to be successful. Aside fromoffering our loan professionals superior support–such as in-housemarketing, legal/compliance, and loan processing support–WaterstoneMortgage also equips them with a variety of innovative loan products.This makes it easy for loan originators to find a program that caters to thespecific circumstances and needs of most borrowers.
As a bank-owned organization, Waterstone Mortgage also has the rareability to develop new products, such as the Wealth Building Loan,physician loans, and one-time close construction loans. For every uniquequestion that arises with loan programs, Waterstone Mortgage is able toprovide an answer. As an innovative and forward-thinking company,
giving its loan originators viable and effective solutions is a top priority. Another part of the forward-thinking mentality is Waterstone
Mortgage’s ability to provide effective technology to its loan originators.Waterstone has several proprietary systems that were developed with theobjective of making the mortgage process efficient, streamlined,accessible, and uncomplicated.
By providing full support for its loan originators, Waterstone Mortgagealso ensures that it provides the best experience possible to itsborrowers. Its variety of loan programs has changed the way borrowers“shop” for a mortgage. No longer are they presented with only one option;many of Waterstone Mortgage’s borrowers are eligible for a variety ofprograms, so they can choose the loan that best fits their situation.Waterstone Mortgage is dedicated to continuously improving the loanprocess for our borrowers. They can expect timely updates,transparency, and effective communication as they go through the loanprocess. After all, they are making what may be the largest financialtransaction of theirlife; WaterstoneMortgage makes ita priority to ensurethat they arepleased with thehomeownershipjourney.
WaterstoneMortgage.com
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GoHomeside.com
How the company started: Why Homeside? Homeside Financial sawa major need for a company to come in and disrupt the current stateof mortgage banking. Hence, it undertook the extensive mission tochange the industry from what it is, to what it should be: An industrythat cares more about people than profit, an industry that cares aboutgiving Millennials the opportunity for career growth, and an industrythat is on the leading edge of technology and process efficiency.
How the company has changed the mortgage industry: Homesidehas redefined what it means to be modern in the mortgage industry;not modern in the sense of time, but modern as a state of mind. Withmodern thought, Homeside has innovated purchase lead technologyto increase its average loan officer’s production by 50 percent, allwhile building a customer experience that is localized and scalable inevery market we serve. The results? Decision-making closer to thecustomer, and more transactions closed on-time.
TheMoneySource.com
How the company started: Founded in 1997 by Stavros Papastavrou, TheMoney Source has grown steadily in correspondent and retail lending. In2013, he partnered with Darius and Mike Mirshahzadeh (twin brothers) andAli Vafai to form Endeavor America Loan Services as a wholesale division.They have since merged entities to create one of the nations’ largest lendersto also include an in-house servicing division. Licensed in all 50 states, TMSdelivers on its brand promise of “Relationships Matter.”
How the company has changed the mortgage industry: The MoneySource places great value on something often overlooked in the mortgageindustry — company culture. Whether it’s the company mascot (giant pinkUnicorn), the peer-driven employee recognition system or the annual TED-like “Growing Happiness” conference—our company culture runs deep anddefines who we are.
Our culture also drives our goal of helping 1 million U.S. householdsachieve and maintain the dream of home ownership in the next decade.Working with home buyers nationwide, we’ve established a streamlinedmortgage process to meet the needs of next-generation homeowners.
The company’s CEO, Darius Mirshahzadeh was recognized as one ofGlassdoor’s top CEOs for 2015 andhas also been recognized by NMPMagazine as one of the Next 40Mortgage Professionals to Watch.
We’re a company driven by ourCore Purpose of Growing Happinessas well as our Core Values of PeopleMatter, Inspiring Leadership,Strength of Character, and RockSolid Service.
Vision.WVMB.com
How the company started: Founded in 1932, Wallick & Volk is the oldestprivately-held mortgage company in the United States. We are a familyowned and operated mortgage lender. The firm’s four basic values:honesty, integrity, hard work and passion. Wallick & Volk has one mission… to assist members of the community in their efforts to realize the greatAmerican dream of homeownership. The company’s business is built uponits knowledge in the mortgage industry and an unwavering commitment toits customers.
How the company has changed the mortgage industry: In the digitallending world of today, Wallick & Volk continues to adhere to the coreprinciples founded more than 80 years ago. The company does not use aone-size-fits-all approach. It strives to produce a “WOW” experience for itsclients, generate referrals without having to ask. Wallick & Volk has twoclients: The prospective mortgage holder and the internal client—the staffthat completes the dream for its primary client. Staff is vital, one of Wallick& Volk’s most important assets. Perhaps that’s why the company wasrecently voted number two on Mortgage Executive Magazine’s 50 Bestcompanies to work for in America. Wallick & Volk is big enough to be rankedin the top 100 mortgage lenders in the nation, yet everyone in the companyis known by their first name. Wallick & Volk believes bigger is not better.
TotalExpertInc.com
How the company started: Total Expert was founded by industryveterans on the premise mortgage companies needed a softwareplatform that was intensely focused on innovation and solvingcommon pain points of the end users. Legacy software platforms weregrowing more inefficient as they failed to address industry changes,such as the need for a solution that will align compliance, sales, andmarketing. This massive unmet need fueled the launch of Total Expert.
How the company has changed the mortgage industry: For the firsttime in history, the playing field was leveled as lenders were forced toexist their MSAs. This created a vacuum as lenders sought outcompliant marketing partnerships in order to continue growing theirexposure to consumers through co-marketing efforts with their valuedRealtor partners. Total Expert has provided one of the first end-to-endsolutions for co-marketing and customer relationship managementwith a keen eye to compliance tracking. Total Expert’s patent pendingtechnology helps provide lenders with a simple and secure platform toco-market and share marketing costs based on pro-rata basis. TheTotal Expert platform automates the calculation of pro-rata costs ofco-marketing across multiple channels which allows companies tomanage and enforce theircompliance policies across theenterprise based on RESPASection 8. With Total Expert asthe system of record, all co-marketing efforts can bemeasured, tracked and de-ployed from a single integrateddashboard.
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The Skinny on Small-Balance Commercial
Multifamily DealsThree reasons why multifamily deals provide the easiest
transition from residential to commercial mortgage lending
SPONSORED ED ITORIAL
By Michael Boggiano
It’s no secret … residential brokers across the country are re-turning to the commercial market as they look for new waysto diversify their business. Many of these novice commercialbrokers focus on closing multifamily deals, and for good rea-
son. Multifamily properties (considered commercial if they contain five ormore units) are most similar to the residential business they’re used to.
If you’ve decided to take on commercial loans, but don’t know where tostart, small-balance multifamily deals could be the perfect introduction. Hereare three reasons why:
1. You’re familiar with the property typeThe only difference between a residential and commercial multifamily dealis the property’s unit number. If you’ve closed a residential multifamily dealwith one to four units in the past, you should be well-prepared to handle five-plus units on the commercial side.
Multifamily deals typically don’t feature the issues that can impact otherproperty types, such as environmental concerns or mixed-use restrictions. Youmay wish to work your way to more complicated transactions over time, butmultifamily deals provide the easiest starting point.
2. You already know the borrowersMultifamily borrowers are often the same clients within your existing residen-tial customer base. These borrowers may be the entrepreneurs, small-businessowners and other professionals who have trusted you for their residentialmortgage.
Leverage your relationships by letting your customer base know that youare offering small commercial loans and can now serve their needs for mul-tifamily purchases and refinances. Examine the real estate-owned (REO) sec-tion of closed 1003s to identify current commercial property owners who maybe interested in your new offerings. Your clients will appreciate knowing theycan come to you for commercial loans, even if they don’t have a deal for youright now.
3. You have more opportunities to close dealsAccording to a recent Mortgage Bankers Association (MBA) report, commercialmultifamily originations increased by 24 percent in 2015. As this niche marketcontinues to grow in 2016, some small-balance commercial lenders are meet-ing the needs of a wider range of multifamily borrowers through streamlineprograms that typically require no tax returns or 4506-T requirements.
These programs give you more opportunities to secure funding for self-employed professionals, borrowers who recently renovated their property,and other types of clients who often struggle to get loans because of docu-mentation and income verification issues.
Every streamline program is different, so be sure to ask a lender for a de-tailed program description before you start marketing to prospective clients.
One of the most interesting aspects of commercial mortgage lending isthat no two properties are alike. Warehouses, retail shops, self-storage facili-ties, offices and other building types each feature challenges you will learn toovercome as you grow more experienced in the commercial arena.
For now though, your best strategy may be to leverage your expertise andmaster the small-balance multifamily niche. By closing deals and growingyour commercial network, you will enhance your reputation as a trusted ad-visor and earn the respect of borrowers and lenders alike.
Michael Boggiano is national sales manager for Silver Hill Funding, a small-bal-ance commercial mortgage lender offering nationwide financing from $250,000to $1 million. He may be reached by phone at (888) 988-8843 or [email protected].
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Forsythe Appraisals and top-qualitypanel appraisers. This new valuationoffering includes software solutionsfrom ACI, fraud detection, loan qualityand compliance analytics supported byFirst American’s number one industryposition in real property data coverage.The expanded valuation capabilitiesbroaden First American MortgageSolutions’ end-to-end offerings and sup-port its commitment to the Pursuit ofCertainty in Lending.
“We are delighted to have ForsytheAppraisals join the First American fami-ly. With more than 75 years of appraisalexpertise and a loyal, blue-chip clientbase, the addition of ForsytheAppraisals accelerates our efforts tohelp lenders and appraisers deliver adefect-free mortgage, while providing asuperior consumer experience,” saidKevin Wall, president of First AmericanMortgage Solutions.
Forsythe’s management team,including President and CEO JohnForsythe, Senior Director of CustomerDevelopment Tim Forsythe, and ChiefAppraiser Alan Hummel, will continueto lead those operations.
“Joining the First American familystrengthens our ability to provide ourcustomers with continually improvingvaluation products and services intoday’s changing business and regulato-ry landscape. The Forsythe team willnow have access to First American’sindustry-leading property data, as well,further enhancing the quality, accuracyand speed of our appraisals,” said JohnForsythe. “Our employees will also ben-efit by being part of a company recog-nized in 2016 by Fortune magazine asone of the 100 best companies to workfor in America.”
Guardian Mortgage OpensNew Michigan Office
Guardian MortgageCompany will expandits Michigan footprintwith the grand open-ing of its Troy, Mich.location, marking
Guardian’s second Michigan location—the first in Grand Blanc—and the 10thoffice in the U.S.
Guardian currently operates officesin Grand Blanc, Mich.; El Paso, Plano,Arlington, Richardson and San Antonio,Texas; Santa Fe and Albuquerque, N.M.;and Scottsdale, Ariz. Several moreoffices throughout Texas, Arizona andColorado are slated to open throughout2016.
Dave Jansen will serve as branchmanager at the Troy location, and anumber of experienced loan officerswill join his team. Jansen says he ismore than ready to start servingMichigan area homebuyers.
“We are so excited to broaden ourreach in the great state of Michigan,”Jansen said. “Our team cannot wait to
get in there and start working with localresidents, guiding them on their jour-neys and helping them get the bestfinancing possible.”
IRS Partners With theMBA on “Tax DesignChallenge”
The Internal Revenue Service (IRS) hasannounced the upcoming start of itsfirst Tax Design Challenge crowdsourc-ing competition to encourage innova-tive ideas for the taxpayer experience ofthe future. The effort, being done incoordination with the MortgageBankers Association (MBA), is a crowd-sourcing competition open to the pub-lic. The competition will engage teamsof designers, developers, and innova-tive thinkers across the U.S. to envisionoptions for taxpayer interactions.
“Crowdsourcing is a new activity forthe IRS, but we believe working with cit-izens and the private sector will helpsupport innovation in an importantarea for the nation’s tax system,” saidIRS Commissioner John Koskinen. “TheTax Design Challenge reflects our com-mitment to find the best ideas and planfor a future state of tax administrationthat works well for taxpayers and ourpartners.”
The three-week competition invitesthe public to imagine the taxpayerexperience of the future and specifical-ly design an online experience that bet-ter organizes and presents a person’stax information. The goal is to make iteasier for a person to manage their taxresponsibilities, and use their own taxdata to make informed and effectivedecisions about their personal finances.
“At MBA, one of our goals is to helpfamilies achieve home ownership, andthe ability to safely obtain and shareone’s own tax information is critical tothat process. Ultimately, the designsproduced through this competitioncould help millions of Americanssecurely interact with our tax systemfaster and easier,” said David H.Stevens, CMB, president and CEO of theMBA.
Submissions will be accepted start-ing April 17 through May 10, 2016.Participants must first register on thesite TaxDesignChallenge.com.
Throughout the competition, partici-pants will have the chance to engagewith policy experts and a network ofmentors that include world-class strate-gists and designers from governmentand non-government organizations.The winning designs will be showcasedin an online gallery and receive mone-tary prizes, funded exclusively by the
heard on the streetcontinued from page 37
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leadershipLYKKEN ON
leadership
Five Ways to be Prepared for Inevitable FailureBy David Lykken
The mortgage indus-try has had itsshare of ups anddowns over the
past decade. Since the financial crisis, theregulatory environment has produced aseemingly unending array of legislativechallenges that are making it increasinglydifficult for the mortgage industry tooperate. On top of that, we have socio-logical challenges with Millennials, eco-nomic challenges with wage stagnation,and geopolitical challenges with all of thethings that are happening in other coun-tries. All of this comes back to apply moreand more pressure on the industry.
For those who have made in this farwithout losing out in any big way, youmight want to count your blessings. But,more importantly, you might want to startthinking about how to prepare for theinevitable failure that’s bound to comeyour way soon enough. We all fail. Evenwhen conditions are perfect and we’re atthe top of our game, anything can happenthat can throw our business out of bal-ance and leave us scrambling to putthings back together. The risk of failure iseven greater for us now that we knowwhat we’re up against. The question isn’twhether or not you’ll fail … the questionis what you’ll do when it happens.
We all love a good underdog story. Welike our heroes to go against the odds toovercome setbacks and recover from fail-ures in order to achieve his goals. In reallife, we face the choice of deciding whichkind of heroes we’re going to be everyday. In the mortgage industry, we willface setbacks. We will fall and we will fail.What we need to ask ourselves is: Do wewant to be the hero that falls and nevergets back up, or do we want to be thehero that falls and rises again?
There’s a saying that I’ve always appre-ciated: “If you haven’t failed, then youprobably haven’t been in business long
enough.” I’ve heard that, in the SiliconValley, if you haven’t failed at least a fewtimes, investors won’t even take you seri-ously. In other words, failure is normal.It’s only devastating if you allow it to be.And now, if you haven’t yet faced that life-threatening failure in your organization,you have the unique opportunity to beready for it. What can you do now toensure that you’ll survive when theinevitable failure comes? I suggest a fewthings ...
The first thing you need to do if youwant to prepare yourself for a big failureis to plan for it. You are only as good asyour contingency plan. Ask yourself: ifwhat you were doing right now no longerworked, what would you be doinginstead? If you wait until you fail to makethat decisions, you’ll be scrambling at thelast minute to come up with somethingthat works. However, if you have a plan inplace already, you’ll be able to pivot intoand waste a minimal amount of resourcesmaking that transition. Priding yourselfon having “no Plan B” in order to showhow committed you are is all well andgood until Plan A fails. Then, you will wishyou would have developed that “Plan B”after all. There is absolutely nothingwrong with having another plan in placefor your business in the event that yourcurrent course of operations no longerworks. If you don’t have such a plan, itmeans that you probably don’t reallybelieve you can fail. It’s a nice sentiment,but it’s unrealistic. We all fail; those whoultimately succeed aren’t those who denythe fact but, rather, those who prepare forit. Fortune favors the prepared.
A second, and related, thing you maywant to do in order to prepare for failureis to diversify your current operations. Ifyou are only in one kind of business oronly serving one market, you are taking agreater risk than you need to. Everyorganization has its cash cows. There’snothing wrong with focusing on one par-ticular segment, if that’s what works for
you. But it’s a good idea to at least dab-ble in an array of areas. You’ve heardthe adage: don’t put all your eggs in onebasket. In times of success in any givenarea, there is always the temptation toput everything you have into that onedirection. Don’t give into that tempta-tion. You never want to be the positionthat losing one thing causes you to loseeverything. As much as possible, diversi-fy your activities. The more you’reinvolved with, the quicker you canrespond to the failure when it comes.
A third important step to taking inbracing yourself for failure is to focus onbuilding a solid team. A leader is onlygood as those who follow. When yourorganization faces failure, the questionisn’t so much how you will respond but,rather, how your team will respond. Willyour people be able to quickly adaptand move in a new direction? If you dohave team that responds quickly to fail-ure, then you can survive almost any-thing. If not, then it doesn’t matter whatother plan you have in place—it won’twork. So, how do you build the teamneeded to weather the storm? It all hasto do with how you hire and developyour team. Obviously, certain teammembers need to have some level ofexpertise in their respective fields. But,the more you can cross-train, the better.You want to have people who can adaptto changes. If you don’t, you may haveto let people go when certain aspects ofthe business don’t pan out—and thatcould lead to loss of morale. Whateveryou do, don’t neglect to put a heavyfocus on your people. The captain cannever survive the storm without hiscrew.
A fourth way to be prepared for fail-ure is to stay informed about what’sgoing on in the industry and in theworld. This all goes back to planning. Ifyou are aware enough of the issues toproject what kinds of regulations, eco-nomic situations, and sociological trends
that will be occurring in the future, youcan build your contingency plan aroundthose things. Having that kind of businessintelligence will give you the insight togive yourself a buffer against the changeswhen they come. Failure is almost alwaysmore devastating when you don’t see itcoming. Stay informed, and you won’t beblindsided when the inevitable failurecomes your way.
One final way to always be preparedfor failure is perhaps the most important:You’ve got to stay positive. While this maysound cliché and overdone as a piece ofadvice, it should not be taken lightly. Ifyou lose your positive attitude, everythingelse will go with it. Negativity is a poison.It will lead you to put all of your eggs intoone basket, out of fear. It will spread toyour team and lower morale. It will skewwhatever information you take in whileyou’re building your plans for the future.Staying positive isn’t about being touchy-feely; it’s about always focusing on whatyou can do to improve your situationrather than finding excuses and wallow-ing in self-pity. Positive thinking is power-ful, not merely because it makes you feelgood, but because it leads to positiveaction. If you allow positivity to pervadeeverything you do, you will be readywhen the failure comes. Stay positive ...and you might just stay alive.
David Lykken, a 43-year veteran of themortgage industry, is president ofTransformational Mortgage Solutions(TMS), a management consulting firm thatprovides transformative business strategiesto owners and “C-Level” executives via con-sulting, executive coaching and variouscommunications strategies. He is a fre-quent guest on FOX Business News andhosts his own weekly podcast called“Lykken on Lending” heard Monday’s at1:00 p.m. ET at LykkenOnLending.com.David’s phone number is (512) 759-0999and his e-mail is [email protected].
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The Long & Short:The Business of Short Sales
Combining Hardest Hit Funds With Existing Refi Programs Can Help Millions
of Underwater Homeowners
By Pam Marron
There are five existing refinance loans available for underwaterhomeowners that allow for: New secondary refinancing; no maxi-mum combined loan-to-value (CLTV) of the first and second mort-gage; and mortgage payments to stay current.
This could enable Hardest Hit Funds to be used as a new second mortgage torefinance underwater higher second mortgages and resetting interest-onlyhome equity lines of credit (HELOCs) unable to be refinanced.
One of these mortgages, the FHA Short Refinance, can even provide a refi-nance where none is available for conventional first mortgages that are notFannie Mae or Freddie Mac, therefore not eligible for the Home AffordableRefinance Program (HARP).
The five refinances are:
1. Fannie Mae DU Refi Plus Home Affordable Refinance Program (HARP) forexisting Fannie Mae conventional first mortgages
2. Freddie Mac Relief Refinance (HARP) for existing Freddie Mac conventionalfirst mortgages
3. FHA Short Refinance for negative equity non-FHA first mortgages4. FHA Streamline for existing FHA mortgages5. VA Interest Rate Reduction Refinance Loan (IRRRL)
Written guidelines for five refinances1. Fannie Mae DU Refi Plus (HARP): B5-5.2-01: DU Refi Plus and Refi PlusEligibility (03/29/16)l No maximum loan-to-value (LTV) ratio for fixed-rates and no maximum com-
bined loan-to-value (CLTV) and home equity combined loan-to-value (HCLTV)ratio.
l Eligible subordinate financing: New subordinate financing is only permittedif it replaces existing subordinate financing.
l Using Hardest Hit Fund Programs (HHF) for principal reduction or closingcost assistance: Housing Finance Agencies (HFAs) have established programsutilizing HHF programs, which provide funding for various purposes, includ-ing funds for principal curtailment, to help homeowners obtain more afford-able mortgages or to help homeowners retain their homes.
l Existing mortgage must be current for last 12 months.Note that the Home Affordable Refinance Program (HARP) will expire Dec. 31, 2016.
2. Freddie Mac Relief Refinance Mortgages (HARP): Same Servicer andOpen Access 2016l No maximum Loan to Value (LTV) ratio for fixed-rate mortgages and maxi-
mum LTV ratio for ARMs is 105 percent. There are no maximum Total Loan-to-Value (TLTV) or Home Equity Total Loan-to-Value (HTLTV) ratios.
l Secondary financing: Existing junior liens may be refinanced simultaneous-ly with the first mortgage provided the junior lien is being refinanced for oneof the following:
l A reduction in the interest rate of the junior lien, to replace an ARM, a bal-loon or call option with a fixed-rate, fully amortizing junior lien.
l A reduction in the amortization term or the monthly payment of the juniorlien.
l Evaluating the borrower’s credit reputation: If an Accept is received throughLoan Prospector, the credit reputation is acceptable. Otherwise, the home-
continued on page 93
most notably Denver (99.8), Austin(99.1), Salt Lake City (97.7), Honolulu(97.6), and Los Angeles (96.9).
Nonetheless, Freddie Mac warnedthat “pockets of weakness” persisted inthe Great Lakes region and in Southernstates except for Florida and Texas.
Freddie Mac Deputy Chief EconomistLen Kiefer greeted the data with a cau-tious warning on the lingering prob-lems related to housing affordability.
“Despite a stronger jobs market anddeclining unemployment, wage gainshave not kept pace with house pricesputting a pinch on homebuyer afford-ability,” he said. “In the top 100 metroareas MiMi tracks, Los Angeles andHonolulu have elevated payment-to-income indicators and Miami, FL, is veryclose to elevated. An additional sixmetro areas have their MiMi payment-to-income indicators over 100, indicat-ing that the payment-to-income statisticfor that area is above its historic bench-mark … Mortgage rates fell at the startof the year, helping to bolster afford-ability heading into the spring season.But a lack of available inventory of for-sale homes has constrained many mar-kets. We see that reflected in the MiMipurchase applications indicator, whichremains weak nationwide.”
Can Mother Nature MessUp Mortgage Reviews?
There are numerous factors that canimproperly influence the approval of asketchy mortgage application. But canan abundance of sunshine result in theclouding up of a loan officer’s betterjudgment?
According to a KPLU report, new datafrom the University of Washington hasdetermined that the weather plays arole in determining whether a marginalmortgage application is accepted orrejected. The research paired theweather with the level of loan officerdecisions and concluded that moreapprovals occurred on unexpectedlysunny days while more rejections piledup on unexpectedly cloudy days.
“We sort of know from psychologythat when it’s cloudy, people tend to beless happy than when it’s sunny,” saidRan Duchin, associate professor offinance at the UW Foster School ofBusiness. “You can get that data at anhourly level across all weather stationsin the U.S. You just get it online.”
Alas, the surplus amount of sunnyday approvals turned out to be morelikely to go into default.
“The cool thing about this data is
that for all the applications that areapproved, we could actually trace theperformance of those loans being origi-nated, after they’re approved,” Duchinsaid, adding that it was incumbent onlenders to investigate “to what extentshould we automate some of the deci-sion-making processes ... to avoid thissort of human factor, these mistakes.”
Equifax: $1.82T in NewFirst Mortgages in 2015
Last year saw $1.82 trillion in new firstmortgages originations, according tonew data from Equifax. This marked a42.9 percent increase from 2014, whilethe total number of new first mortgagesoriginated last year was 7.71 million, ayear-over-year increase of 31.6 percent.
Furthermore, last year saw morethan 791,900 in home equity install-ment loans, an increase of 26.7 percentfrom the previous year. The total bal-ance of new loans in that same timewas $26.5 billion, an increase of 20.8percent. There were also more than83,000 new loans originated for bor-rowers with subprime credit in 2015, ayear-over-year increase of 31.2 percent.During 2015,
10.5 percent of all loans were issuedto sub-prime credit borrowers, a slightincrease from the 10.1 percent level in2014.
As for the home equity lines of cred-it (HELOC) market, the total credit limitsof new loans originated in 2015 was$146.1 billion, up 19.7 percent fromthe previous year. In 2015, the totalnumber of new loans originated wasjust under 1.39 million, an increase of11.7 percent over 2014. There were20,100 HELOCs loans originated for bor-rowers with subprime-credit in 2015,an increase of 15.2 percent and thehighest total since 2008 (35,660 loans),and total credit limits on new subprimeHELOCs in 2015 was $745.2 million, an8.5 percent increase and the highesttotal since 2008 when they totaledmore than $1.78 billion.
“We saw a nice jump in mortgagelending in 2015 that was driven by bothrising home-purchase activity and solidrefinancing volumes,” said Amy CrewsCutts, senior vice president and chiefeconomist at Equifax. “While low inter-est rates are helping, continued gains inemployment and consumer confidenceare key. What we are not seeing is anymeaningful loosening of underwriting,at least with respect to credit scores.
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nmp news flashcontinued from page 31
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“There aren’t many things
uglier in this world than
unrealized potential, so I’d
like you to seriously consider
the option of hiring a coach.”
credit: comstock
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“If you do what you’ve alwaysdone, you’ll get what you’vealways gotten.”
—Anthony Robbins
Warning … if you onlywant what you’vealways gotten, don’twaste your time
reading this article.Okay, now that that’s out of
the way, let’s begin. If youhappened to catch any of MarchMadness—the NCAA basketballtournament—did you notice howwhen things start going wrong fora team, its coach almost alwayscalls a timeout? Good coachescan see what’s going on to causethe lull in scoring, so they huddlethe team to make adjustments—to do something different. Mr.Robbins’s quote above is spoton.
Well, this article is a timeoutfor all you lenders out there whoare feeling you could be scoringmore points in mortgage lendingbut for some reason (or reasons)you’re not. I’ve been in thebusiness for decades and I haveyet to see a successful lender orteam of lenders who weresuccessful without at least somecoaching.
I know, when you hear theword “coach,” you think you’re
giving up your independence.You’re independent. I’mindependent, too. That’s one ofthe reasons I got into thisindustry. It allows forindependence. But when you lookat the facts, the actual numbers,the truly successful people in thisindustry have had (or do currentlyhave) coaches. Every pro teamhas a coach. Show me a teamwithout a coach, and I’ll showyou a losing team. Coaches arethose who’ve been on the courtand know how things can gohaywire. And better yet …coaches know how to changethings to make the ball go intothe basket.
I want to you to take a timeoutfor the rest of the article andconsider the following:
1. Where are you in your career?Is your career where youimagined it to be when youstarted in mortgage lending? Ifnot, why not? Do yousometimes find yourselfwishing you were assuccessful as other lenders inyour market?
2. What do you want changed inyour career? Think aboutMonday mornings: What bugsyou when you get out of bed
and start thinking about theday ahead? What items onyour to-do list cause even theslightest bit of dread?
3. What do want most in the nextyear in your career? Whatabout the next five years?What’s the true carrot you’rechasing?
4. Here’s the real kicker: Are youhaving trouble answering howto make the changes forquestions two and three—howdo you eliminate the dreadand how do you reach yourdreams? If so, you I’d like youto seriously consider a coach.Thousands of lenders havebeen where you are now.Those who chose help are
now achieving their dreamsin mortgage lending. I’veseen it over and over in mycareer as a coach.
Every single lender has morepotential than they’re tappingright now. There aren’t manythings uglier in this world thanunrealized potential, so I’d likeyou to seriously consider theoption of hiring a coach. Itdoesn’t have to cost a lot. Andyou can learn about them forfree. I know my company offersa free consultation (and manyothers do too). And once youhire one, it might just be for anhour or two. Not much moneyat all. The return on investmentmight well turn out to be a slamdunk!
Bubba Mills is CEO of Corcoran Consulting & Coaching Inc.He may be reached by phone at (800) 957-8353 or visitCorcoranCoaching.com.
Timeout!Time for Some
Coaching to Reachthe Next Level
BY BUBBA MILLS
By Chad Jampedro
In the mortgage industry, we are con-stantly faced with factors beyond ourcontrol, from the ebbs and flows of thegreater economy, to changes in hous-ing policy and service regulations. Yet,how we choose to lead our lendingbusinesses is entirely in our hands.
If you’re like most people, you’ve
had a less than stellar job or two inyour past. How many of those memo-ries are tied to a “bad manager?”Probably more than you’d like toadmit.
According to human resourcesexpert, Susan M. Heathfield, so-called“bad bosses” come in a number of vari-
eties (but we knew that, didn’t we?) Still,Heathfield was able to narrow down themost commonly cited characteristics.
Here are the complaints that toppedthe list:
l They choose favorites. l They fail to communicate and may
not have clear expectations.l They use inappropriate disciplinary
measures.l They speak loudly, rudely or one-
sidedly to staff.l They take credit for the successes
and positive accomplishments ofemployees.
l They fail to provide rewards orrecognition for positive employeeperformance.
It sounds obvious, but effective lead-ership is necessary to keeping employ-ees engaged—and both are tied toboosting your bottom line.
In 2013, Gallup found that 70 per-cent of American workers were “notengaged” or “actively disengaged” intheir current roles, a statistic often tiedto so-called “managers from hell,”according to the study. In fact, thesebad managers are not only responsiblefor creating disengagement among theirteam members, says Gallup, but arealso costing the U.S. an estimated $450to $550 billion every year.
How much is it costing you?Employees who are not engaged aremore likely to be emotionally discon-nected, and thus, much less produc-tive. In our business, that means lack-luster customer service, slower pro-cessing, and fewer employees who aremotivated to initiate or follow-up onsales leads. Disengagement impactsthe very core of our business—guidingour customers along the path tohomeownership.
Millennials take over the workforce Understanding how to leverage youleadership begins with understandingyour employees’ needs. Over the years,employee expectations have greatly
changed. The recession upended thestatus quo and workers no longer wanta job to simply “clock-in and clock-out”of. They want a career with a purpose.
This is no truer than among theMillennials. According to Pew Research,Millennials (adults ages 18 to 34) sur-passed Generation X to become thelargest share of the American workforcein 2015. With so many Baby Boomersretiring, the mortgage industry is beingforced to reconcile with a new genera-tion of workers—especially asMillennials move into leadership roles.And it goes way beyond setting up afoosball table or offering the occasionalfree lunch.
Tapping into the Millennials’ con-scious is vital to avoiding highturnover rates. This group is highlyfickle when it comes to staying with anemployer for more than a few years.In fact, a 2016 Millennial Survey byDeloitte found that one in fourMillennials would summarily quittheir jobs to join a new organizationor to start a new career. If given a two-year wide frame, roughly 44 percentwould do so. Millennials were alsomore responsive to creative or collab-orative environments, rather than tra-ditional, or authoritarian workplaces.
Turnover is expensive, so it isimperative to appreciate whereMillennials are coming from. Whilethe prospect of personal financialgain is certainly a motivator, Deloittesays that Millennials additionallyvalue an employer’s reputation—both internally, and externally. Forexample, more than six in 10 ofrespondents referenced the quality ofits products (63 percent) and levels ofemployee satisfaction (62 percent).Another 55 percent weighed theemployer by the level of customerloyalty and satisfaction. So, havingdisengaged employees on staff mayactually harm your recruiting efforts.
“When salary or other financialbenefits are removed from the equa-tion, work/life balance and opportu-nities to progress or take on leader-ship roles stand out,” the study states,adding that flex time and trainingalso topped the list. “An employer
“It sounds obvious, but effective leadership is necessaryto keeping employees engaged—and both are tied toboosting your bottom line.”
The Key to Driving Your MortgageBusiness Forward … You
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The right products The right culture
Agency products, proprietary, non-Agency portfolio solutions
Regionally-assigned Operations Centers and support staff
Aggressive compensation structure
In-house marketing support and materials
Wholesale Lending
To learn more about bringing your talent and ideas to Caliber, contact [email protected].
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that can offer these is likely to bemore successful than its rivals insecuring the talents of the Millennialgeneration.”
Helping employees chart a career path Let’s go back to the idea of purpose.The majority of employees strive to bemore than “paper pushers.” As such,many employees crave professionaldevelopment opportunities.
In the Deloitte Millennial study,more than 60 percent of respondentsfelt their “leadership skills are notbeing fully developed,” and only 28percent felt that their current employerwas making “full use” of the skills theycurrently held.
In the mortgage industry, this caninclude one-one-mentorship, technicaltraining or group educational ses-
sions—either on the mortgage industryitself, or about how your mortgagecompany operates. These sessions—either one-on-one or group-focused,gives employees the ability to sharetheir ideas and build team relation-ships. In fact, it can be a great opportu-nity to let your employees in on howtheir role impacts the overall missionof the organization.
From a manager standpoint, it quiteliterally pays to pay attention to thewants of their employees. Managersshould encourage free and flowingcommunication, encourage ideas andsupport the ambitions of their employ-ees, says Deloitte.
While Millennials are often toutedwith being narcissistic and impatient,they are not alone in their sentiment.Time and time again, employees reportfeeling excluded from sharing their
ideas, and being given opportunities toclimb the corporate ladder.
Take a pulseMost managers don’t set out to be“bad managers.” Some are just over-whelmed with work, are focused onbigger goals within the company, orcompletely unaware of how theirbehaviors may be affecting their team.
Taking a pulse on the satisfactionlevels of your employees is one of thesimplest ways to gather insight intoemployee satisfaction levels.Partnering with an employee surveycompany, for example, or creating asurvey of your own, are simple ways togather insight. These surveys arealmost always anonymous and giveemployees an outlet to express theirfeelings—good and bad—withoutrepercussions.
Wholesale and Correspondent Partnerships
Easy Scalable Turnkey Options and Benefits
Spanish Support, Documents and Resources
Full HECM Mortgagee Lender and Investor
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You Always Have Access to Your Intake and Underwriting Teams
HECM for Purchase Program HECM Refinance Program
Our Money House On Demand Portal and Staff will “Right Fit” you with the GovernmentLending products, support and tools to meet your customer needs and close more loans.
Contact us today! 844.594.7200 [email protected]
www.mhodportal.com www.moneyhouseus.com
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While setting up these surveys oftencomes with a price tag, it’s worth theinvestment. Regular meetings to dis-cuss new regulations and processes orchanges to one’s role, can also helpmanagers gauge employee satisfactionin the meantime.
The more communication that isfacilitated between managers andemployees, the easier it will be tospot choppy waters, before the boatcapsizes—or in our case, the housefalls in.
Chad Jampedro is the president of GSFMortgage Corp. With more than 20 yearsin business, GSF Mortgage has embracedthe next generation of homeowners withits GoGSF brand, continuing its dedica-tion to flexible and transparent lending.He may be reached by e-mail [email protected].
By Michael Groff
When you Google the word “Leadership,”approximately 737,000,000 results comeup in the search. You can read articles andopinions for days about the psychology of aleader, leadership skills, leadership styles,the qualities of a great leader, determiningwhether a leader is born, teaching leader-ship qualities, etc. The options are never-
ending. There are countless leadershiptraining programs, educational courses,seminars, conferences, workshops, videosand speeches … you name it. Each prom-ises to create leaders, boost sales, changelives, assemble teams, etc., all with thepurpose to ultimately help you achieveleadership greatness.
It makes me wonder: What is our obses-sion with leadership? Our society idolizes,glorifies and vilifies our leaders. All it takes isa few moments of watching the discussionson the evening news to see it firsthand, espe-cially in the year of Presidential Election. Ourpoliticians glorify and vilify one anotherright along with the public. People love to beinspired by great leaders and innovators,such as Steve Jobs. When he was living, wehighly anticipated his next revolutionaryidea. People waited in lines for hours, evendays, to be the first to purchase whateverproduct that was offered at the next Appleunveiling. Now that he has passed away, weread his biography, view his TED talks,repeat his quotes and watch the movies thatHollywood produced about his life. We idol-ize him as a great leader, a hero of informa-tion technology. He’s truly fascinating to alarge portion of the population.
Then, you take someone who posedhimself as a great leader, such as BernieMadoff, who turned into a villain. Heschemed, plotted and lied his way to thetop, all the while, leading people throughone of the largest financial fraud cases inU.S. history. Both Steve Jobs and BernieMadoff have changed many lives and madea profound impact on our society, obvious-ly for absolutely different reasons. And, inthese extreme cases, it is clear to see why weare obsessed with their stories.
But what about the everyday leader? Thesmall business owner who employs a hand-ful of people, the teacher shaping the adultsof tomorrow, the chief of police at the localstation keeping neighborhoods safe … dothey possess the same skills as the famousleaders? My guess is, yes, to some degree,but it also depends on who you ask. In myopinion, leadership is hard to define and itmeans different things to different people.In the Merriam-Webster Dictionary, leader-ship is defined as, “A position as a leader ofa group, organization, etc.; the time when aperson holds the position of leader; thepower or ability to lead other people.”Those are pretty basic definitions for a sub-ject that is extremely complex and far-reaching. No wonder we have a fascinationwith trying to define it, grasp it, bottle it andteach it. Leadership is a commodity andthose who possess it are quite often held inhigh regard when they use it wisely.
A question that arises in regard to lead-
ership is what are the qualities of a goodleader? One of my favorite quotes is fromformer President Dwight D. Eisenhower whosaid, “The supreme quality of leadership isintegrity.” While there are many opinions onthe qualities of leadership, I completelyagree with the importance of integrity.Growing up in a small farming communityin the heart of the Midwest, my parentsowned a multigenerational plumbing andheating business, and integrity was a way oflife. In order for the family business to pros-per, there was no question we had to behonest and fair and conduct ourselves withintegrity. In a small town, you could notthrive, let alone survive, any other way. Laterin life, when I was building my career in themortgage industry, that value stayed withme. When I made my way to Wallick & Volk,I was immediately struck by the core valuesthat the company was founded on, in 1932:Operate with trust, speak with good pur-pose, strive for mastery, conduct ourselveswith integrity, encourage personal responsi-bility. There it was again … integrity. I haveused that value as a building block for myachievements and I attribute it to my successas an effective leader for Wallick & Volk to it.
As a leader, you must demonstrateintegrity in every aspect of your business,regardless of the industry. This sets the tonefor how your employees will conduct them-selves within the organization. It becomesthe foundation of the culture of the compa-ny. I believe a leader doesn’t create the cul-ture of a company; a leader creates anopportunity for the culture to be created bythe sum of its parts. The people create theculture. By bringing the people together, theculture creates itself. That being said, as aleader, you must look to hire people withintegrity that will uphold the standards thathave been set by the organization as a wholeand build upon the foundation you’ve creat-ed. It comes down to the people in theorganization working together for the com-mon goal of the company, which obviouslyis different in every firm.
I think Richard Branson says it best: “Ifyou look after your staff, they’ll look afteryour customers. It’s that simple.”
Maybe it is that simple after all.
Michael Groff is president and chief executiveofficer of Wallick & Volk. He may be reached byphone at (307) 771 8397 or visit WVMB.com.
“Leadership is a commodity and those who possess itare quite often held in high regard when they use itwisely.”
The Fine Art of Achieving Leadership Greatness
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By Jeffrey Tesch
Let’s be clear: Leaders are not born.They’re made, and made through hardwork, dedication and determination.Individuals need training and experienceto become a leader; it is not somethingthat is inherently known.
In my experience, through hard work,an individual will make their own wayinto a position where they are able to testthe waters and start working with teams.This is the catalyst where prospective lead-ers are either able to develop their skills,learn what it takes to be successful in aleadership role and work their way up tolarger roles.
Or, prospective leaders realize that thismay not be the best path for them. Manypeople set out with the idea that being aleader is easy only to fail because theydon’t understand that it takes more thana certain mentality to lead others.
Age is just a numberWhile age is often viewed as a major fac-tor of whether someone will be a goodleader or not, it does not always translateinto an optimum level of experience.
As someone, who at a young age man-aged employees that were older than me,you can be young and a good leader itreally depends on how you handle things.It is important as a leader at any age to setclear goals and establish expectationswhen figuring out how to meet thosegoals.
You can be a manager with decades ofexperience and be a terrible leaderbecause you don’t properly communicatewith your team or have a set plan in place.
The power of attractionAttracting leaders and great talent in gen-eral to an organization is all about creat-ing a dynamic workplace that fosters self-empowerment at every level. No onewants to work for a company where theywill be micromanaged.
You want to give employees who are
taking on a leadership role the ability toset goals for their area of responsibilityand figure out how to achieve thosegoals with their team.
When you dictate how someone isgoing to handle their team you eliminatemuch of their ability to display the traitsthat make them a successful leader.
Leaders want to be part of anorganization where they can applytheir experience and pass that knowl-edge on to others.
Personality countsFirst and foremost, a good leader musthave the ability to listen not just dictate.A good leader values feedback fromemployees because he/she knows thatthey may not have all of the answers.
It is also important that a good leaderhas vision and plans for the future. Thereis a major difference between someonethat is able to react to a situation versussomeone that already has a plan in placeshould that situation occur. Once thatplan is in place, a good leader can setgoals and will review with their team ona consistent basis to see how those goalsare being met and what they mean inthe grand scheme of things.
Finally, don’t be mean. In all serious-ness, a good leader knows that althoughthey are in a position of power, it doesnot give him/her the right to treatemployees like dirt.
People are much more receptive to aleader that treats them with respect andvalues their opinion.
Hold the ones you loveIt is important that once you find a greatleader and have them within your organ-ization, that you keep challenging themto take their area of responsibility to thenext level.
Once there is any sort of complacency,thinking that their department can’t getany better, a good leader typically starts
to feel like they don’t have to strive toachieve new accomplishments.
Good leaders like to be challengedbecause it allows them to grow and devel-op their skills. If a leader hits a plateau at acompany, it typically leads them to lookelsewhere.
Fish where there is fishAt my company, we always try to promotefrom within when we can. Oftentimes, it isbetter to invest in employees that exhibitgreat potential because they can developthe skills to become leaders versus trying topick a leader out of a crowd.
Many of the respected managers andleaders at my firm started as lower levelassociates. It is my belief that leaders willalways present themselves through theirhard work and their drive to make a differ-ence in an organization without beingasked.
Internal promotion is highly effectivebecause these individuals become invest-ed in the company and as they progressthrough the ranks, they are groomed for afuture leadership role.
In essence, leadership is a skill that canbe learned. It comes naturally to thosewho work hard and persevere, but it canalso be taught to individuals who are ded-icated and determined to get the jobdone. I believe in grooming our futureleaders from within and setting them on apath for future success.
Jeffrey Tesch is managing director of RCNCapital LLC, a national, direct privatelender. He is responsible for the day-to-dayoperations of RCN, including sales growthinitiatives, underwriting review with com-pliance oversight and leadership of seniorlevel strategic planning. He may be reachedby e-mail at [email protected].
Experience and Perseverance: The Pillars of a Great Leader
“It is important that once you find a great leader andhave them within your organization, that you keepchallenging them to take their area of responsibility tothe next level.”
By Brad Herbert
When many people are asked to think ofa leader who inspires them—or who theyaspire to emulate—they are frequentlydrawn to those whose leadership has ele-vated them to a certain level of celebrity.
Renowned political and world leaders,respected religious and spiritual leaders,CEOs and business moguls are all amongthe esteemed and oft-quoted leaders—and rightly so. There are countless exam-
ples of individuals with profound intellect,wisdom, strength and grit whose stories ofstruggle, sacrifice and success are widelybroadcast. But what I find more meaning-ful when I consider what has shaped myown definition of great leadership, are theexamples of the leaders I have been fortu-nate to encounter in my personal life,whose stories are not well-known.
Defining leadership:Variations and commonalities When I think about who I want to be as aleader, it is a combination of individualswho have made an impact on my lifebecause of their leadership. The list is longand includes parents, grandparents, bosses,mentors, coaches, professors and teachers,and they all lead differently than you mightexpect. Some are introverted and soft-spo-ken, but when they talk everyone listens. Incontrast, some are more extroverted. Theycan command a room with a grand pres-ence you cannot help but admire. Thenthere are those whose leadership qualitiesmanifest in more subtle ways. They all havedifferent leadership styles, none necessarilybetter or worse than the others, but all areeffective.
It is essential for our society to haveleaders with varying leadership styles.That being said, there are certain qualitiesthat many good leaders share. I havefound that natural leaders are terrified ofsilence in a way. They are often the first tospeak up when everyone else is strugglingto come up with an answer. However, thebest leaders also listen before they speak.They have a way of recognizing the uniquestrengths of their teams and then utilizingthem so each individual feels empoweredand valued. Yet they do not take credit forthe job that their team has done, nor dothey abandon them when their work iscalled into question. They motivatethrough encouragement, positive rein-forcement and coaching, rather thanthrough fear. Good leaders also lead byexample and know when it is necessary totake a back seat.
Leading in the business worldIn my opinion, the quality that separatesgood leaders from truly great leaders is a
desire to do things the right way, the hon-est way and with integrity. This is particu-larly true in the competitive world of busi-ness. Our society tends to attribute finan-cial success to strong leadership, or to usefinancial success as a barometer for lead-ership quality. But there are countlessexamples that demonstrate that this is notalways an accurate measurement.
When it comes to marketing in particu-lar, the best leaders are creative and inno-vative, ready to try something new andunwilling to settle for the status quo. Theyare also able to recognize and acknowl-edge when a strategy isn’t working andhave the courage to change course whenappropriate. This ability to be proactive,adapt and problem-solve is essential forleaders in all disciplines. Natural leadersdo not simply talk about problems.Rather, they are the first to present solu-tions and have a way of motivating othersto jump on board to implement them.Really, that’s one of the secrets to suc-cess—if you can call it a secret—to identi-fy problems, come up with the best, mostinnovative solutions and then executethem quickly and effectively.
Natural leadership vs.learned leadershipWhile many leadership qualities areinnate, I believe the notion that leadersare born is only true to a point. Certainlynatural leaders have a way of bubbling tothe surface and certain traits like a will-ingness to learn and emotional intelli-gence are inborn. The argument couldalso be made that leaders self-select to acertain extent. However, some leadershipskills can be taught and developedthrough experience. I think the key hereis that everyone has unique, intrinsic tal-ents and strengths and they are all differ-ent. What can be taught is how to leadeffectively with what you’ve been given—how to best utilize those innate qualities.
Our society tends to focus primarily onleadership as it relates to official recogni-tion and status, often leading us tobelieve that if you’re not a leader, youhaven’t “made it.” This is simply not true.Equally as important as the gift of inher-ent leadership traits is the gift of the abil-ity to be led. After all, the highest per-forming teams are diverse in terms of
“When I think about who I want to be as a leader, it is a combination ofindividuals who have made an impact on my life because of theirleadership.”
Challenging the Status Quo: How Society’s Definition of Leadership Is Missing the Mark
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their collective abilities and strengths.Therefore, it is important for those in amore official leadership capacity to rec-ognize the unique strengths of each per-son they lead, and work to nurture anddevelop those qualities for the benefit ofthe group.
Recognizing leadership potentialThe practice of seeking out and nurturingleaders is directly applicable to recruitingnew talent to an organization. One way toidentify natural leaders from a pool ofapplicants is to look at what extracurricu-lar activities they are involved in, like vol-unteer work, serving on a board, etc.Look for instances in which they havechosen to take the reins, whether insideor outside of work, without being forcedto. True leaders don’t need to be toldwhat to do. They take the initiative andfind solutions.
When seeking out leaders, recruitersand managers need to be careful not tooverlook or discredit younger leaders.While there is no substitute for experi-ence, some of those intangible, innateleadership qualities can manifest early inlife. You don’t have to look far to see greatleaders emerging from the Millennial gen-eration. A number of successful compa-nies are being started and driven byyoung entrepreneurs whose fresh ideasand leadership styles are changing anddisrupting the market. It would be foolishto underestimate their influence andpromise. Skilled leaders understand thatthey have a unique opportunity to mentoryoung leaders and give them the guidanceand support they need to become thegreat leaders of tomorrow.
Engaging and retainingquality leadersIdentifying leaders of all ages to add to
your organization is only half the battle.They have to want to join you and the keyto this is rather simple. Successful peoplewant to be associated with successful com-panies. Leaders are attracted to companieson the move, companies where they willnaturally be a good fit. Much of this per-ception starts from the top down, with thecompany’s existing leadership structure.Ultimately, the best thing an organizationcan do to attract great leaders is to commitas a whole to doing business the right way,with honesty and integrity.
Once you’ve attracted great leaders toyour organization, the challengebecomes retaining them. It will not takelong for competitors to realize the valueand potential of your best leaders andyou can bet they will try to win them over.But your leaders will be less likely tojump ship if they feel truly valued, thattheir contributions make a difference.Part of that expression of value comes in
www.callfurst.com
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the form of trusting them to do their job.Fortunately great leaders can be trustedto perform and will often exceed expecta-tions. Ensuring their voice is heard andgiving them a seat at the table when itcomes to decision-making can also havean impact on their job satisfaction.Competitive compensation, while impor-tant, is often farther down the list com-pared to quality of life at work. Give yourleaders the quality of life they are seekingand deserve, and you and your companywill reap the benefits.
Brad Herbert is the head of the MarketingTeam at Castle & Cooke Mortgage LLC,and is responsible for leading and imple-menting a comprehensive marketingstrategy for all Castle & Cooke Mortgagedigital, social, PR, advertising and leadgeneration initiatives. He may be reachedby phone at (801) 461-7105 or [email protected].
By Kerry W. Elam
Leading with a clear intention sets the pos-itive, motivating tone of a successfulorganization. Inherently, we are more ableto align with leaders that articulate thewhy of the organizational path. This articleexplores how great leaders consistentlycommunicate clarity by setting intentions,taking time for self-reflection, and tappinginto intuition.
Create clarityThe most powerful leaders seek claritythrough taking time for themselves.When we take time to nourish ourselves,we have greater capacity to see the bigpicture, allowing us to make wiser deci-sions and plan more effectively. With aculture that thrives on multi-tasking, ourworld is a busy place. There are moreprescription drugs than ever being uti-lized to deal with anxiety, stress, anddepression. “When the well’s dry, weknow the worth of water,” said a wiseBenjamin Franklin. If we are scurryingfrom task to task and appointment toappointment, our minds will be clut-tered, leaving little space for clear lead-ership. As a leader of ActualizeConsulting, I am often asked how I havesuch a high capacity and still maintain
clarity. Here are some tips for leaders(and team members!):l Indulge in natural Vitamin D by doing a
physical activity outdoors.l Take time regularly for quiet medita-
tion or mindfulness practices.“Meditation is not a way of making yourmind quiet. It’s a way of entering intothe quiet that’s already there–buriedunder the 50,000 thoughts the averageperson thinks every day.” (DeepakChopra).
l Schedule a play date with family orfriends. Encourage your team to do thesame.
l Breathe deeply when feeling stress orconfusion.
l Smile.l Stretch to release the tension we hold in
our muscles. l Listen to music daily.l Eat healthy foods.l Drink plenty of water.l Get enough rest. Skimping on sleep and
“down time” is not a badge of honor.l Delegate and empower your team.
Set intentionsMerriam-Webster Dictionary defines inten-tion as “the thing that you plan to do or
achieve: an aim or purpose.” In any facet oflife, intentions are relevant to keep usfocused. In business, intention setting notonly facilitates communication amongteams, but also aids us in clarifying the whybehind our strategy. When we take time toanalyze the intention, we can hone in on aclearer vision enabling us to explain to oth-ers and obtain organizational buy-in andsupport. Thomas Jefferson said, “Nothingwas or is farther from my intentions, thanto enlist myself as the champion of a fixedopinion, where I have only expresseddoubt.”
Some guidance regarding intentions islisted below:l Seek to understand the various facets of
intentions, by first defining the inten-tion, and then implementing it fullythrough your thoughts and actions.
l Determine how others view yourintentions. Do they want to work withyou, ask you for advice? If yes, you canconclude others value your guidance.However, if you are leading with littleinteraction, you may want to re-evalu-ate how you are actually impactingothers.
l Lead intentionally and your teams,organizations, and businesses will pros-per in ways unimagined.
In his book, The Seat of the Soul, GaryZukav stated, “The more aware of yourintentions and your experiences youbecome, the more you will be able to con-nect the two, and the more you will be ableto create the experiences of your life con-sciously. This is the development of mas-tery. It is the creation of authentic power.”
Practice self-reflectionAnother key ritual of a great leader is takingtime for self-reflection. As Sigmund Freudsaid, “Being extremely honest with oneself isa good exercise.” If we take time to honestlylook at ourselves and our triggers, we cancontinue to grow. Life is a learning processand we strengthen our development bylooking at how we show up.
Defensiveness is a powerful clue to ourareas of needed growth. The next time youfind yourself reacting, take a moment toanalyze the why. Most often there is a truthto uncover. For instance, your staff says youare a micromanager and every time you
are made aware, you feel your temperaturerising and your inner voice says, “I am nota micro-manager!” The more-seasonedleaders see this as an opportunity toimprove, and take the necessary steps toenhance their behavior to empower theirteam.
An important best practice is to incorpo-rate self-reflection across the organization.At my firm, we recently added self-reflec-tion questions to our bi-annual reviewprocess. We used the questions from thebook, HR Transformation:1. What are some of the common chal-
lenges I run into when trying to accom-plish my work?
2. How do people generally respond to me?3. What work do I find easy, energizing and
enjoyable?4. What work do I get excited about doing?
What work do I avoid by procrastinating,avoiding or postponing?
5. What do I need to do less of and what doI need to do more of to add greatervalue to my internal and external cus-tomers?
6. Who are the people I trust the most? AmI willing to ask them for suggestions forhow I can improve?
7. How do I respond when I receive feed-back? Am I able to process the informa-tion without becoming defensive?
Follow intuitionLastly, listen to your intuition. What is yourgut telling you? Yes, this in an effective strat-egy even in the business world! Bill Gatesattributed much of his success withMicrosoft to intuition, saying that to win big,“Often you have to rely on intuition.” AlbertEinstein said, “The only real valuable thing isintuition,” and came up with his Theory ofRelativity via an intuitive dream. Rememberthough, that in order to tap into our intu-ition, we have to clear the static, intentional-ly tuning into our inner guidance.
With clarity, intention setting, self-reflec-tion, and following our inner voice, we caneffectively lead with the strong and stablesupport of our organizations.
Kerry W. Elam is managing director of opera-tions and human resources with ActualizeConsulting. She may be reached by phone at(703) 868-1506, e-mail [email protected] or visit ActualizeConsulting.com.
“The most powerful leaders seek clarity through taking time forthemselves. When we take time to nourish ourselves, we havegreater capacity to see the big picture, allowing us to makewiser decisions and plan more effectively.”
Leading With Clarity
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By Lisa Coleman
Many people have experienced a vari-ety of leaders in their lifetime. Whenyou think back about the differentleaders in your life, which ones standout to you? What is it about themstands out to you? Perhaps they havesome qualities that make them a great,effective leader that makes them standapart from the rest. An effective leadercan be considered one that gets his orher work done, while inspiring andhelping others to do the best work thatthey can do. They can be counted onand trusted to communicate well andmake the decisions that will benefitthe company and individuals involved.Great leaders typically have five traitsin common: Decisiveness, Honesty,Passion, Responsiveness and Empathy.
Decisiveness The ability to make important deci-sions intelligently and quickly is whatsets leaders apart from others. Manypeople don’t enjoy making decisionsout of fear of making the wrong one,laziness, or simply frustration with notknowing enough information to makethe correct choice. Being decisive givespeople control over the situation. Greatleaders make the decisions that wouldbe best for the most people involved bygathering the facts, analyzing the infor-mation, considering any possible alter-natives, and deciding what to do quick-ly and effectively.
Being decisive is important, but not asimportant as following through with thedecisions that are made. Consistentlysticking to your decisions helps to developtrust between others. When people knowthat you’re going to do what you sayyou’re going to do, you develop trust with-in your department and company as awhole.
HonestyHaving open and honest communicationis important in order to getting thingsdone efficiently. People look to leaders
for guidance on what they should do orhow they should proceed with their ownwork. If a leader isn’t honest and upfront,it can lead to bigger problems, time wast-ed, and eventually a lack of respect mayoccur between the individuals.
Honesty does more than help buildtrust, it also helps to develop credibility.Developing credibility, being transparent,and becoming reputable in your businessand industry can show that you’re an eth-ical leader that does the right thing forthe right reasons. Honesty also helps youto become a good example for others inyour office, family and community.People that look up to you will followyour example. If you’re looking to forman honest and positive environment inyour department or company, with indi-viduals you can trust, it’s important thatyou set this example yourself.
PassionBeing passionate about what you do andwanting to do an excellent job makes asignificant impact on being an effectiveleader. When you show that you’re pas-sionate about your work, others cansense that energy and enthusiasm andwill feed off of that themselves. Seeinghow passionate a leader is about theirwork can help employees realize thatthey are part of something bigger. Thistype of realization can help people wantto work harder and be proud of theircontribution to the overall project.
Another outcome of being passion-ate is the environment you personallycreate. You create a space that peoplewant to be around with a desire for suc-cess at the forefront. Being passionatecan help leaders keep a clear head withtheir eyes on the prize instead of gettingdistracted by other irrelevant requests.
ResponsivenessResponding quickly to situations andquestions makes a leader seem as if heor she genuinely cares about the overalloutcome of the product. Being respon-
sive also helps leaders be moreapproachable to those around them.Having an open door policy is a way tokeep communication flowing. By hav-ing this policy, you welcome questionsand hearing out other people’s ideas,which not only makes people feelappreciated, but you may get to devel-op a better product because of it.
Welcoming feedback and being ableto communicate respectfully to others inthe office is important for creating anefficient environment. Good leaders areable to communicate to people with allranges of knowledge about the topic athand. For instance, they are able toexplain a complicated concept or idea tosomeone with no knowledge of the sub-ject as well as explain it to someone withan extensive background.
EmpathyHaving empathy is an admirable qualityamong respected leaders. Leaders thathave empathy understand others emo-tions and take it one step further to relateto them. When someone approaches aleader with a problem, asking the rightquestions to try to see where the otherperson is coming from or why they feel acertain way showcases empathy. This alsoshows that the leader genuinely caresabout their coworkers and others. Beingnonjudgmental and a good listener areimportant skills to have as a leader.Having a down to earth personality and
being understanding to others is key tobeing more approachable.
The likeability factorUltimately what having each of thesetraits does is increase a person’s likabil-ity. Naturally, how people view youchanges the way they interact with you.If a leader possesses positive qualitiessuch as decisiveness, honesty, passion,responsiveness, and empathy, they willnot only be well liked among theirpeers, they will likely be highly respect-ed by others in the industry and knownfor being a good leader.
A leader can display traits that aren’tlisted here and still get the job done, butif being an influential leader that has apositive effect on the company and thosearound you is your goal, working ondeveloping these traits should become apriority. A leader that works hard, is trans-parent, truly cares about the work thatthey produce, and wants not only them-selves, but others to succeed as well is aleader worth being.
Lisa Coleman is the communications andpublic relations coordinator for NorcomMortgage. She graduated from DePaulUniversity in 2015 with a BA degree incommunication and media. Lisa joinedNorcom Mortgage shortly after gradua-tion, handling social media, copywrit-ing, blogging and public relationsresponsibilities for the company.
“Great leaders typically have five traits in common:Decisiveness, Honesty, Passion, Responsiveness andEmpathy.”
Five Traits of Effective Leaders
By Jeff Bode
“Leadership is the capacity to transformvision into reality.”—Warren G. Bennis,Founding Chairman, Leadership Institute atthe University of Southern CaliforniaIt’s no secret that top loan originators are
in high demand, and the market forrecruiting these top producers is extremelycompetitive, with lenders jockeying to pro-vide the most attractive inducements toconvince loan originators to jump ship.
However, anyone can put together a decentcompensation and benefits package, andwhile those things are certainly relevant to aloan originator’s decision on where to plytheir trade, there are other factors that mustbe taken into account.
For loan originators seeking to establishthemselves as leaders in this industry, it iscritical to consider the vision of your currentorganization and determine if that divisionmatches your personal goals. In today’smortgage lending environment, thoseorganizations that have embraced technolo-gy as a means to reduce costs, improve loanquality, maintain compliance and provide acompetitive differentiator are the kinds oforganizations that are going to naturallybreed leaders.
As the Law of Attraction states, “Likeattracts like.” Therefore, when evaluating anorganization’s leadership developmentpotential, loan originators must consider theorganization’s vision for technology adop-tion, the origination technology that cur-rently exists and how the organization hasincorporated technology into other facets ofthe company.
An overall vision for technologyThe mortgage industry’s vision of a fullyelectronic process from origination throughnote delivery is rapidly transforming intoreality, thanks to recent advances in tech-nology. Forward-thinking mortgage lendershave already begun to adopt these new sys-tems in order to reduce both the cost andthe time to close, meet regulatory require-ments and provide borrowers with unparal-leled customer service.
“e-Whatever” is the direction that themortgage industry is heading towards, and alender’s attitude towards these initiativescan be quite telling in terms of its overallview of technology. An organization thatrejects these initiatives immediately out ofhand is probably short-sighted in otherareas of their business and, as such, may notbe as nurturing of leadership in its loan orig-inator ranks.
On the opposite end of the spectrum, anover-reliance on technology can indicate alack of faith in the ability of humanresources to get the job done right. This kindof environment can be equally as stifling forloan originators with leadership aspirations.
The sweet spot, as they say, is an organi-zation that values ALL of its resources—both people and technology—and viewstechnology a tool to enhance the efficacy ofits workforce. When evaluating an organiza-tion’s overall view of technology, here aresome key questions to consider:l What strides has this organization made
in moving towards a fully electronicprocess?
l How often do executives talk abouttheir vision for technology within theorganization?
l Is technology mentioned as part of thecompany’s mission and/or values?
l Has technology been made a priority interms of budget?
l What kind of training does the organi-zation provide on its technology?
Origination technologyIn addition to overall technology philoso-phy, loan originators should also considerthe line-of-business technology already inuse. At the very least, most lenders will havea loan origination system (LOS) in place. Theconfiguration of this system can provideinsight into how well the lender has incor-porated technology into the organizationand tailored technology to fit its uniqueprocesses.
Very rarely does an out-of-the-box LOSconfiguration meet 100 percent of alender’s needs so usually, some level of cus-tomization is required. Lenders that havenot taken the time and expense to cus-tomize their LOS configurations to harnessits total potential are unlikely to do thesame in regards to employees.
Furthermore, a lender may have manyother systems in place as well for under-writing, quality control/risk management,lead generation, compliance, documentpreparation/management and so on. Theability of these systems to work cohesivelywith each other is a direct reflection of theorganization’s ability to see the bigger pic-ture and organize itself accordingly. Lenderswith discordant systems are often unorgan-ized in general, and if management’s focusis directed towards chaos management,opportunities for growth and leadership aregoing to be few and far between.
Tech-savvy lenders, on the other hand,will have spent a great deal of time andmoney creating an electronic origination
“… When evaluating an organization’s leadership developmentpotential, loan originators must consider the organization’s vision fortechnology adoption, the origination technology that currently existsand how the organization has incorporated technology into otherfacets of the company.”
Like Attracts Like: How TechnologyTranslates Into LeadershipOpportunities for LOs
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ecosystem in which all systems work in con-cert to create a nearly seamless flow of infor-mation, documents and data. When there isharmony in an organization’s operations,executives have the time and energy todevote to employee satisfaction and devel-opment. Consider the following regarding alender’s current technology usage:l What systems is the lender currently
using?l How much of the origination process is
being conducted manually and why?l How much customization has the lender
done with its current configuration?l How well do the lender’s line-of-busi-
ness systems work with each other?
Ancillary technologyNo matter the industry, there are key func-tions that are universal to all businesses—finance/accounting, marketing, etc. Forloan originators, marketing is a huge area of
concern, as this directly affects the ability tobring in new business.
Digital forms of communication (e-mail,Web, social media, etc.) has become a farmore prevent and preferred means of mar-keting to consumers. If a lender cannot sup-port its loan originators’ digital marketingefforts, that speaks volumes about thatlender’s ability and desire to support itsworkforce in general.
Additionally, the kind of access toapproved marketing materials a lender pro-vides to its loan originators can be indica-tive as well. If a lender has made a signifi-cant investment in line-of-business technol-ogy but has to ship hard copies of market-ing materials to its loan originators, there issomething amiss. That kind of disconnectspeaks to larger gaps in the lender’s overalloperations and undermines confidence inthe lender’s ability to adequately supportgrowth as a whole.
Again, cohesion in a lender’s technologystrategy, even in non-line-of-businessareas, is a key indicator of the lender’s over-all approach to it business. Lenders thatensure their loan originators are givenevery tool possible to succeed are going tobe far more likely to nurture and supportleadership growth within the organization.Loan originators should consider the fol-lowing in regards to a lender’s ancillarytechnology efforts:l Does the lender support digital market-
ing alongside more traditional meth-ods?
l What kind of access does the lenderprovide to its approved marketingmaterials?
l Does the lender incorporate technologyinto its approved marketing messages?
As the opening quote from WarrenBennis illustrates, there is a direct correla-
tion between leadership and vision.Visionary organizations are far more likelyto support the professional developmentand growth of employees.
The mortgage industry’s future is onethat incorporates e-Signature, e-Closing, e-Note and e-Vault technology to transformthe mortgage origination process, and theforward-thinking mortgage lender has notonly accepted this change in direction, butembraced it. Thus, for loan originatorsseeking to develop within their professionand grow into leadership roles, they mustconsider their current organization’s atti-tude towards technology and align them-selves with a lender that prepared for thefuture.
Jeff Bode is owner and chief executive officerof Addison, Texas-based lender Mid AmericaMortgage Inc. He can be reached by e-mailat [email protected].
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By Kerry Wirth
The winning qualities ofan exceptional leaderAs an executive in the mortgage indus-try, I am often asked how I approachthe process of finding and retainingoutstanding leaders within my organi-zation. The answer is a complex one,because there is no surefire “One-Size-Fits-All” approach to developing a tal-ented leadership team within a compa-
ny. It’s an ever-evolving process thatinvolves many changes along the way.
That being said, if you are a leaderin the mortgage lending industry whohas the responsibility of finding excep-tional leaders for your organization,one of the most basic questions youshould ask yourself is, “Which leader-ship qualities or characteristics aremost important to my organization?”
These may include some of the following:l Superior communication skillsl Honesty and integrityl Confidencel The ability to inspire and motivate othersl Adaptability to changel A sense of humor l The ability to be firm yet fairl Can effectively turn a negative situation
into a positive onel Shows empathyl Is passionate and drivenl Possesses a strong sense of accom-
plishmentl Commitment to a desire to succeedl Intuitionl Patient, yet maintains a sense of
urgencyl A well-rounded individuall Ability to think outside of the box—
strong problem-solving abilitiesl A good role modell Holds team member and their peers
accountablel Can make effective decisions
Of course, this is simply a starting point.Once you consider the qualities listed above,jot down a few of additional characteristicsthat you believe are important in a leader.Another essential question to consider is howthese qualities fit with your company’s cul-ture. Workplace culture is key to a business’ssuccess and maintaining a healthy teamenvironment. For instance, someone may bean exceptional leader—with all the “right”qualities—but if he or she does not fit intoyour company’s culture, it is unlikely that amutually beneficial relationship would existbetween this leader and your company.
When considering the characteristicsthat make a good leader, another impor-tant item to keep in mind is that good lead-ers are not in their roles to simply manageemployees, but to groom those individualsto become better in their own roles. Inother words, managing the day-to-dayoperations is only a small part of an effec-tive leader’s position. They must alsoencourage and teach their employees toexcel and strive for excellence on a dailybasis. As such, when you are recruiting forleaders within your organization, you maywant to focus on this topic early in your dis-cussions with the potential leaders, inorder to discern if they have the ability and
the excitement to motivate their directreports.
I also believe it’s important to considerthe leadership qualities that are relevant tothe mortgage lending industry, in particu-lar. For instance, leaders in the mortgageindustry must display strong customer serv-ices levels with both internal and externalcustomers. Strong work ethic and a sense ofteam building are also valued in the mort-gage industry. Moreover, a sales-focusedoutlook and the ability to adapt easily areessential; as we all know, the mortgageindustry is ever-changing, and you must beable to learn new regulations and adaptyour procedures accordingly.
Finding “diamonds in the rough”After you have identified the leadershipqualities that are most important to yourcompany and that fit well with your organi-zation’s culture, you will be ready to startthe process of seeking out those who matchyour idea of an exceptional leader.Attracting and retaining top leaders certain-ly involves a great deal of focus and strategy.
At my firm, we have a hardworkingTalent Acquisition Department that uti-lizes a variety of resources to attract high-quality candidates. We also have an exten-sive vetting process that helps us eliminatecandidates who may not be a good fit.Above all, we ensure that each new lead-ership hire has a work ethic and personal-ity that align with our culture.
As your organization begins the recruit-ing process, remember that a balancebetween seeking outside individuals andpromoting those who are already withinthe company is important. Recruiting andattracting leaders from outside yourorganization will help create diversityamongst your leadership team. Neverunderestimate the power of opening your-self up to fresh ideas, new business strate-gies, and outside expertise. More than like-ly, these will strengthen your current lead-ership team.
On the other hand, remember thatexceptional leaders don’t always comefrom outside the organization. In fact,some of your best leaders may be alreadysitting in the desks next to you; they sim-ply haven’t had the opportunity to take ona leadership role yet.
“When considering the characteristics that make a goodleader, another important item to keep in mind is that goodleaders are not in their roles to simply manage employees,but to groom those individuals to become better in theirown roles.”
Identifying Extraordinary Leaders
www.LykkenOnLending.com
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Promoting individuals within yourorganization certainly has its benefits. Forinstance, it is much easier to identify lead-ership traits and qualities when you arefamiliar with the individual already. Take alook around your office. Which of youremployees is regularly outperformingother individuals? Which of your employ-ees routinely takes the initiative to solveproblems quickly and effectively? If youfind yourself focusing on one or two peo-ple who fit into this category, these may beprime candidates for a leadership position.
Other benefits of promoting currentemployees include:l It’s easier to groom an individual who
already understands the processes andprocedures, business strategies, andgoals of the company.
l Providing employees with a goal andcareer path will improve your compa-ny’s employee retention.
l You already know that the employee
meshes well with the company culture. l It shows your employees that you
value them and their success with thecompany.
Take these ideas into considerationwhen determining who may be the best fitfor a leadership position within your organ-ization. Again, there is no “correct” answeras to whether an outside candidate or aninside candidate will be the best fit. Yousimply need to consider the options, con-sult with other respected leaders in yourcompany, and make informed decisions.
Important takeawaysAs you search for effective leaders to driveyour company’s success, consider thesefew parting words of insight:l Think outside the box when hiring
individuals for leadership roles. Skills,experience, and education are impor-tant; however, finding someone whose
qualities align with your company’sculture is even more critical.
l The aspects of a job function—such asday-to-day processes and procedures—can by learned by anyone who is a greatacademic performer. But an individ-ual’s character, coaching abilities, andoverall mindset cannot be taught.
l Leadership skills are always evolving. Ifyou expect to hire effective leaders,you must also have high standards foryour own leadership development.There is always room for continualgrowth and improvement.
Also, remember that critical thinking, aswell as the ability to listen to and under-stand your employees, is very significant.The overall role of a leader—regardless ofwhether that leader is yourself or someonewho you hire—is to groom and motivateemployees to become better. When one ofyour employees becomes so skilled, talent-
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ed, and motivated that you have little needto encourage him or her further, that’swhen you know you have been a successfulleader! It’s also an indicator that this indi-vidual is ready for a leadership role.
As you continue to work on your ownleadership skills, you will be betterequipped to find effective and exception-al leaders for your company. Remember:It’s a process of continuous growth andchange, but it’s also extremely rewarding.
As senior vice president of Loan Operationsat Waterstone Mortgage Corporation, KerryWirth manages the Loan Operations staff,including the Disclosure Desk, Processing,Underwriting, Closing and Loan DeliveryDepartments. In her role, Wirth administersand manages operational processes andprocedures, develops and implementsstrategic operations initiatives, and pro-vides guidance and training for her respec-tive departments.
By Casey Fleming
Every company wants to hire leaders,but in my opinion, most companiesthink too small when they pursue poten-tial candidates. While every companyneeds to bring tomorrow’s leaders intoday if they are going to thrive in thelong term, most invariably pursue thosewho will give them a significant, buttemporary boost in their production. Bydoing this, they miss out on the leaderswho would give them longer-term, moreeffective contributions. What do I mean?
Almost every company pursues pro-ducing teams in order to boost produc-tion as quickly as possible. There’s noth-ing wrong with that, because the factthat someone has been able to assemblea productive team means they are agood leader, right?
Not necessarily. Someone who is ableto build a productive team certainly hassome of the skills needed for leadership,but perhaps only one or two. The leaderthat’s going to build a region, or a divi-sion for you, has to have it all. One loanofficer, no matter how productive, canever produce as much as an entireregion of competent, moderately-pro-
ducing journeyman-level mortgage pro-fessionals.
What are the character traits that atrue leader has, and how will you recog-nize them?
CompetenceIt’s hard to become successful in thisbusiness without being very competent.Hard, but not impossible. We all knowhighly successful loan officers that aregreat at sales but still don’t know muchabout guidelines or how to analyze aclient’s financial situation. Maybe hehires a great processor to worry aboutguidelines—there’s nothing wrong withthat. Maybe as long as he knows how tosell certain loan products he figures hedoesn’t need to worry that much aboutbeing a financial expert. There arguablyis something wrong with that, but as longas he produces we let him slide.
That loan officer will make youmoney, until another lender makes hima better offer. But he will never buildmore than a small team. The journey-men that will make up the core of yourcompany want someone who is—above
all—thoroughly competent to look upto and learn from. Competence leavesevidence, and that will draw in the corethat will make up the vast majority ofyour production.
Above all, your leader is someonewho can dissect a client’s circumstancesand concerns, has a deep understandingof the financial ramifications of loanoptions, keeps up with changes inunderwriting guidelines and regula-tions, and takes leadership roles in pro-fessional organizations to stay ahead oftrends.
How do you recognize this? Yourinterview questions should include ask-ing your candidate to analyze a hypo-thetical client’s situation to see if he orshe understands the long-term financialimplications if their recommended solu-tions.
Work ethicLeaders are not the last one in the doorin the morning or the first one out thedoor at night. Leaders show up early,use their time effectively, and work untiltheir work is done. They are not clock-driven, but rather they finish their workno matter what it takes. Their team doesthe same, because they will always mir-ror their leader’s work ethic.
Ask your candidates how they man-ager their calendar, and you’ll see if theyare organized, focused and committed.
Drive rather than ambitionMost companies want ambitious lead-ers. They want leaders who are hungryfor financial success, because that willdrive them to bring in the revenues theyneed to achieve their goals. That’s true,except what ambitious loan officerstend to want is to make more for them-selves than ever before—everyone elseis secondary.
Leaders, on the other hand, knowthat their success comes from makingothers successful. They have a very highdrive for accomplishment as a team,rather than financial success for them-selves. They want to produce more rev-enue for the company and enable theirteam to make more than ever before.They want to do this by constantly
improving their own skills so they can bebetter at what they do for their clients,and they want that for their team aswell, because they know serving clientswell breeds success. They want to pro-mote the company because they want towork for an outstanding organizationthat is recognized as a leader in the field,and they want their team to feel proudof being part of it.
Essentially, leaders want to do every-thing they can to see the company andtheir team members become more suc-cessful, knowing that in doing so theytoo will achieve financial success farbeyond what they can do themselves.
It’s a fine, but important distinction.True leaders focus less on how muchmoney they can make, and more onwhat they can accomplish and how goodthey can become, and by doing so, makemore money for themselves too.
Ask your candidates what drivesthem. What is their why? In theiranswers, look for clues that their primarymotivation is making more money forthemselves. Avoid those candidates.Leaders want to become successful byhelping others.
EthicsThe first question companies ask mewhen interviewing is “How many peoplewill follow you if we hire you?” Youmight get a team this way, but they’ll begone as soon as you turn around. A trueleader puts ethics above all else—evengetting the juicy position or makingmore loans. Ethical leaders don’t stealtheir company’s employees, nor do theyraid their company’s data base of clients.
It is especially true once your leaderelevates to a position where a lot of folkslook up to him or her. The team will mir-ror the leader’s values. A true leader—the ones that build highly productive,competent and ethical teams—are theones who put ethics first above all else,even producing revenue.
If you want true leaders in your com-pany, throw out that first question youalways ask.
Support for teamLeaders care about how well their teamdoes. They support the team in getting
“Someone who is able to build a productive teamcertainly has some of the skills needed for leadership,but perhaps only one or two. The leader that’s going tobuild a region, or a division for you, has to have it all.”
How Will You Know When You Find a Leader?
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www.nationalmortgageprofessionalmagazine.com
the education they need to becomehighly competent. They coach their teamhow to advance in their own careers andhow to earn more by building a sustain-able practice. The team will be morecohesive, more motivated and more pro-ductive if they feel totally supported bytheir leader.
Rather than ask candidates howmany people will follow him, ask himhow many of his previous team memberhave gone on to build teams of theirown, and how they are doing.
InspirationalFinally, for the most elusive quality of all,the leader must inspire her team. Thewords “inspire” and “spiritual” have thesame root. People may work for a com-pany, but they will die for a cause.
When the leader inspires their teamto understand the human impact oftheir work, they will be more attentiveand present to their task. They will careabout the impact they have on clients.
When the leader inspires their teamto become the best they can be, they willeducate themselves and build whateverskills they need to make them better atbuilding their practice.
When the leader inspires their teamto understand they are all part of thesame team working for the same cause,they will be more cohesive and moresupportive of each other as they striveconstantly to achieve the organization’sgoals.
To determine if a candidate has whatit takes to inspire their team, ask himwhat inspires them. Really make him gointo detail. Ask why that inspires him,and how. You will learn more about thatcandidate in three minutes than any-thing else you can do.
Then, ask him for examples of his pre-vious team members who exploded theirown practice. Ask what made them do sowell so quickly, and look for his ability tounderstand what motivated them.
ConclusionTrue success is built one solid teammember at a time. Hiring high-produc-ing teams does boost revenues immedi-ately, at least for a while. But hire aleader, and you’ll build much larger andmore productive organizations with sig-nificantly less risk, and dramaticallyimprove your company’s reputation atthe same time.
Casey Fleming is a mortgage advisor with
C2 Financial Corporation and was presi-dent of Silicon Valley Chapter of theCalifornia Association of Mortgage
Professionals (CAMP) from 2012-2014.Casey authored the book, The Loan Guide:How to Get the Best Possible Mortgage
(available on Amazon). He may bereached by phone at (408) 348-3442 or e-mail [email protected].
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By Wes Miller
Just as a sales funnel can dry up whenclient relationships aren’t maintained,so too can our leadership abilities.When leaders fail to cultivate impor-tant core traits, our own bad habitstrickle down to those we lead.Employees are always watching whattheir leaders do and imitate themwith uncanny, sometimes annoying,perfection.
To ensure this trickle-down effectreflects positive traits, it is importantfor leaders to understand who ispassing down those traits to them.
Who’s leading you? Emmanuel James “Jim” Rohn, entre-preneur, author and motivationalspeaker, once said: “You are the aver-age of the five people you spend themost time with.”
If you want to grow your leader-ship skills, spend time with leadersyou want to emulate. Otherwise, youmay not develop the exact skills thatwill make you a better leader.
The fact is … everyone is influ-enced by each other. Choosing who
influences your life, and subsequent-ly, how you influence those you lead,is the first step to long-term successat the top.
In my own experience, I have triedto be a student of leaders I admire inthe context of the obstacles I’veencountered while building a startup.I started my company in 2011 with anidea scribbled on a napkin. Turningthis idea into reality has requiredcommitment, confidence, capital,and a great team.
Here’s what I’ve learned fromother leaders:
1. Ethics trump all Do the right things for the right rea-sons. Many people get this halfright. They do the right things, butfor the wrong reasons, or they havegood intentions, but execute poorly.If you want people to trust you andtherefore follow you without fear,you need to do both. If I’d had thegood intentions of staying thecourse through hard times, but did-n’t have the skill to stick to my com-
mitment, my idea would havestayed on a napkin.
2. Lead by exampleAsking your team to do somethingyou aren’t willing to do yourself is arecipe for resentment. Want youremployees to be more aware of thedirty dishes in the company kitchen?Instead of establishing yet anotherpolicy where you have to monitorwhether people clean up after them-selves, set an example by washingsome dishes yourself. It can have apowerful and humbling effect onthose who report to you, and pro-motes awareness of surroundingsand a problem-solving cultureinstead of a grousing, finger-pointingone. It requires confidence that whoyou are as a leader is not just basedon what you do, but how you do it.
Leading by example is particularlycompelling because it makes yourelatable. If and when you do askpeople to keep the kitchen clean, itwon’t be perceived as an accusation,but as a friendly reminder of theirresponsibilities.
3. Share the visionForming a startup creates excitementbecause people can see themselvesas trailblazers, doing what no onebefore them has done. The energycan be contagious and helpful inbuilding morale, which in turnincreases productivity.
But without a clear vision to goalong with this excitement, peoplewill start to feel lost, like comingdown from a sugar high withouteating something substantial tomitigate its effects. They’ll start tothink, “What’s the point of all this,again?”
It’s easy for leaders to forget thatnot all employees attend high-levelstrategy meetings or are privy to thesame developments or updates thatcould keep them engaged.
Scheduling regular meetings toshare your vision and update teammembers on company happeningswill help them focus on what youare ultimately trying to achieve,
and keep excitement and productiv-ity levels high.
4. ReflectAs CEO of a technology startup, I’velearned that the coder’s code, “Build,Measure, Learn” is also helpful as aleadership skill. This is reflection atits core. What have you learnedabout your team’s strengths? Howcould you better utilize them? Whatcommunication techniques have youtried and failed at in the past? Howcould you change these techniques toget a more positive result?
Without looking back on whatyou’ve done to inform future devel-opment, you’d just repeat the samemistakes. Commit to carving out timeto reflect. If done daily, trying toimprove in some small way every daywill become a habit.
5. Be positiveThe glass may be less than half full. Itmay even be leaking. But be cautiousabout speaking negatively. Both pos-itivity and negativity are contagiousand just as positivity yields productiv-ity, negativity will kill it.
This isn’t to say, ignore damagingsituations and only talk about rain-bows. The fact remains that the glasshas a leak and needs to be fixed. Butinstead of dwelling on the despair orfrustration the negative situation cre-ates, focus on coming up with a solu-tion. This goes back to Leading byExample—cultivating a problem-solving culture instead of a complain-ing one. Staying positive throughoutthe situation ensures it will be fixed.
Your viewpoint, or attitude, willaffect your productivity. It is impor-tant to adjust it accordingly.
6. Ability to pivotPlans don’t always go as expected.Sometimes you need to solve prob-lems quickly and change direction onan as-needed basis. This can be diffi-cult, because you also need to knowwhen to stay the course when it’s notpopular. You need to have the abilityto pivot, and the discernment toknow when not to. It’s easy to chase
“When leaders fail to cultivate important core traits, ourown bad habits trickle down to those we lead. Employeesare always watching what their leaders do and imitate themwith uncanny, sometimes annoying, perfection.”
Follow the Right Leaders to Become One Yourself
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You can’t be ready for whatyou don’t see coming.
To participate, e-mail Scott Koondel at516.409.5555, ext. 324
or e-mail [email protected].
nmp
shiny objects, so the challenge is indeciphering which opportunities topursue.
7. Focus on strengthsWhen you are aware of your personalstrengths, that knowledge shouldinform how you hire in order to com-pliment said strengths. Once youhave brought in the right people, thisskill extends to being aware of whoyour team is and knowing what theydo best. Doing so will help you scalecorrectly, continually bringing in theright people for the right roles asyour company grows.
8. Trust your instinctsDoing something new often meansblazing your own trail. As a leaderyou have information from lots ofsources that not everyone else has.Sometimes you have to make deci-sions that only you can, and thatrequires confidence in your instincts.
9. CommunicationCommunication is a challenge inevery business. Everyone has a differ-ent way of hearing and understand-ing what is said. What you mightmean as a compliment, some mightinterpret as a slight. But if you knowthe strengths of the team member,you can determine how best to com-municate with them.
10. ResponsibilityLeaders who take on blame and giveout praise will go a lot further thanthose who take ownership of successand blame others when things gowrong. It can be difficult, but whenyour team realizes they will be givenpraise when praise is due, and won’tbe blamed for honest mistakes, theirloyalty and admiration will growexponentially.
These are the leadership skills Ihave learned, from both my mentorsand from building a company fromthe ground up. By no means am I aperfect leader. I am still developingthese skills on a daily basis. But Ihave learned what will help memaintain my success and continue toimprove. I hope my experience canhelp you on your own leadershipjourney.
Wes Miller is CEO and co-founder of ATS
Secured, a new technology category forthe real estate closing industry. Millerhas extensive experience in developing
and marketing both core and ancillaryfinancial products. Wes has been recog-nized for his success in sales, customer
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By Eric Weinstein
I love that cartoon where an alienwalks into a 7-11 and says, “Take me toyour Liter.”
Okay, that has nothing to do withbeing a leader, but it’s funny and itsounds like “leader.”
Why would anyone really want to bea leader? That is the guy walking pointin a war who always gets shot first. It isso much easier to be a follower. I
know, given the choice, I would muchrather be a follower. It doesn’t requirethe brainpower, creativity or problem-solving troubles a leader faces. Still,there are times you have to be a leader,like it or not. Or, at least, I do.
Were you ever been given a groupproject in school? Isn’t always the waythat nothing ever gets done until oneperson steps up and pretty much does
everything. Usually, it is the smart oneworried about getting a bad grade. Youmight say, it is the one who feels anobligation to fill the power vacuumwhen there becomes a need and theperson has a desire and abilities toaccomplish the goal. So there are threecriteria: Need, desire and abilities
We fill many roles in life and attimes we are all followers and leadersin different circumstances. In business,I am a leader. At home, my wife leadsand I obey. “Yes, dear.” I let her makethe decisions on social activities, fur-nishing the house, child rearing, eventhe clothes I wear. I am totally sociallyinept in these activities. I trust her deci-sion-making and know it will be betterthan mine. That is why I am a follower.
In one setting, I might be a follower,in another, a leader, as the need arisesand my abilities match the situation.
Being a boss does not necessarilymake you a leader. Being a leader issomething you earn and is not some-thing given to you. Let me give you anexample. I call him “The WORST boss inthe world.”
I was working at a bank and the bosscalled a meeting of all the loan officers.He starts off talking about this newboat he just bought. Boy, he loved thisstupid boat. The speech was prettymuch that his income depended on oursales and we should help him make lotsof money to pay for this boat by gettingmore loans. It was the worst motiva-tional speech ever!
I have been in similar situationswhere I have been the boss and I had tomotivate my loan officers to get moreproduction. This is what I told them.“How can I help you make moremoney? Because when you make moremoney, I make more money.”
Morons think that “all being the bossmeans” is that you get to order peoplearound. That is why they are morons.Nothing can be further from the truth.It is all about motivating people. Andhow do you motivate and influenceyour minions to do you bidding?Simple, find out what they want andhelp them achieve it. Not only will theydo it, they will love you for it.
Now comes the hard part about
being a leader. You have to plan,organize, motivate and get your peoplestriving for a common goal that helpsboth you and them. It can’t help justyou, and it certainly can’t just helpthem. What is the point in that?
I told you being a leader is harder. Itis just so much easier being a follower.Just tell me what to do, how to do itand when. I will do it.
The trouble is, there are so many badleaders out there. How can you trustyour leader not to just lead you off acliff? That is why I never joined the mil-itary. My biggest fear was that my supe-rior would be one of those morons: “Gotake that hill! Oops! Wrong hill, my bad.Sorry you were killed.”
In many things I do, I prefer to be afollower, but, there are times when Ijust cannot stand it any longer and feelthe desire to take the leadership rolejust for my own sanity. If I see a situa-tion going off the rails, I just have tostep in and fix it. It is my nature. I can-not help it.
If you are like me, you probably ownyour own small mortgage broker shopalready. That’s why I started mine yearsago. The boss was an idiot and I justcouldn’t stand it any longer.
If you aren’t like me and have noidea what I am talking about, you are agreat follower. There is nothing wrongwith that. The only way a leader canlead is if there are followers to follow.The vast majority of people are follow-ers, obviously, which is a good thing.We all cannot be leaders all the time,every time. If we were, nothing wouldever get done. Just recognize, as a fol-lower, you are putting your fate intosomeone else’s hands.
Eric Weinstein worked in banking, onthe commercial real estate side until1991, when he fell in love with residen-tial lending. In 1995, he started a smallmortgage company in his basementcalled Carteret Mortgage Corporation,which in 2003, grew to one of the largestmortgage broker companies in theUnited States. Eric is semi-retired, doingmortgages by referral only. He may bereached by phone at (703) 505-8692 ore-mail [email protected].
“Why would anyone really want to be a leader? That is theguy walking point in a war who always gets shot first. It isso much easier to be a follower.”
Take Me to Your Liter
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By Elizabeth Morales
In a knowledge-based worker societywhere companies strive to attractand keep the best talent, leadershipis a key ingredient on a very delicaterecipe. It starts with hiring the rightpeople. Hire folks who know whatyou do and why you do it; peoplethat know your mission and believein your service or product. Equipthem with the tools they need to beproductive and finally get out of theway. Yes. Let their creativity come towork with them. Once you have putin place the systems and processesfor your department/floor/companyto run on autopilot move to the nextlevel and ask your employees a verysimple question: “How am I doing asa leader?” How many times has yourleader asked you that? How wouldyou feel if she did? A bit humbling …right? That simple question changesthe dynamic in a leader/employeerelationship. All of the sudden theleader becomes real and concernedabout what her direct reports’ opin-ions of her and her leadership style.Establish a culture where people arenot afraid of sharing their ideas.There will be true synergy in sugges-tions and opinions in a non-threaten-ing environment.
One of the ways to show employeeappreciation is by providing perks.Around this time of year multiplepublications reveal the top compa-nies in the country to work for. This iswhen everyone wonders (exceptGoogle employees) how a day inGoogle Offices would be. They pro-vide three organic meals a day to alltheir employees, healthy snacks, on-site massages, child care, car washes,yoga classes, a play room, $12,000 intuition reimbursement and manymore perks. Their employee engage-ment is among the highest in thecountry. Coincidental? Not at all.From that kind of treatment to “Youshould be thankful you have a job.
Many people have your skill set,everyone is replaceable, you havebeen late two days in a row, five min-utes each day, blah, blah, blah …”and everything in between, employ-ee engagement is directly correlatedto feeling appreciated and valued.Work place rules are necessary, but itis so much more productive to haveemployees who buy into your mis-sion and wear your t-shirt proudly.You can have your employees oper-ate from fear or from creativity. Youwill get results either way. Try themboth to see where you have the high-est productivity and lowest turnover.
I appreciate my employees, whatkind of perks can I give them? Thatdepends on your budget, but whatev-er you do, track employee engage-ment before and after perks imple-mentation. Maybe your employeesare mainly single and pet owners.Provide pet insurance and bring yourpet to work day. Tuition reimburse-ment is a big perk, and if you canafford it you should offer it, studentloan repayment could be a greatalternative to the traditional tuitionreimbursement perk. Doing staffdevelopment in your office? Howabout at a local restaurant, in BoraBora or Hawaii? Let employees bringtheir families on these trips. Trainyour folks for six hours and sendthem off to enjoy the rest of the daywith their family. SC Johnson (makersof My Big Fat Greek Wedding’sfavorite product: Windex) has anerrand runner on-site to take clothesto the cleaners, deliver flowers, standin line for concert tickets, go groceryshopping and other errands. Think ofperks your employees would appreci-ate. You don’t have to spend a lot ofmoney: Let them have their birthdayoff, cater lunch once a month, sendeveryone home early because you hita sales record or a significant mile-stone, give away movie tickets,
Amazon Prime Membership, have arefrigerator full of water, fruits andother healthy snacks. Above all thisalways have Staff Development Daysto collectively move the needle for-ward. Never underestimate youremployees. They are the heart of yourbusiness. If ever in doubt rememberthese words of wisdom:
“Train people well enough so they canleave, treat them well enough so theydon’t want to. Clients do not comefirst. Employees come first. If you takecare of your employees, they will take
care of the clients.”—RichardBranson, Virgin, CEO
And remember Peter Druker’s famousline, “Culture eats strategy for breakfast.”Happy leading, not managing people.Manage tasks, lead your folks.
Elizabeth Morales is business develop-ment director for Long Beach, Calif.-based Applied Business Software Inc.,creators of The Mortgage Office and TheLoan Office Software. She may bereached by phone at (562) 279-7424 ore-mail [email protected].
“Establish a culture where people are not afraid of sharingtheir ideas. There will be true synergy in suggestions andopinions in a non-threatening environment.”
There Is Always a Better Way to Lead
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By Marc Wayshak
Joe runs a company with 19 salespeo-ple—a mix of veterans and newcomers.Sales have been flat for the past 18months even though the economy hasimproved. Joe is constantly making futileattempts to get his team to prospectmore. He tries to show them how to sellmore effectively, but they continue tofall back into the same old habits.
Sound familiar? I’m willing to bet itdoes.
Joe’s is one of the most common sit-uations I encounter as a sales strate-gist. Entrepreneurial organizationsoften underperform because theyhaven’t built their sales teams system-atically. But it doesn’t have to be thatway.
Follow these seven steps to turnyour ineffectual sales crew into a high-
performing championship team:
1. Evaluate your currentstrategyThere are three key ways to increasesales: Find more prospects, make larg-er sales and increase your closingratios. Do you have a strategy thataddresses all three? More importantly,are you focused on selling to your idealcustomer? Companies often try to sellto everyone, but all of the seriousrewards come when they focus on hit-ting their sweet spot. In Joe’s case, hissalespeople are indiscriminately callingon any and every prospect they comeacross. He needs to clarify for his teamexactly where they should be focusingtheir time and efforts in order toincrease all areas of sales growth.
2. Assess the existing teamIt’s critical that you know your salesteam inside and out. How many A-play-ers, B-players and C-players do youhave? How does your existing team feelabout the organization? How shouldyou manage each salesperson accordingto his strengths and weaknesses? Forexample, Joe knows that he has onlythree A-players and eight B-playerswhile the rest are C-players or worse.He’s spending most of his time trying toimprove the latter group with little toshow for the effort. Instead, he shouldrealistically evaluate the strengths andweaknesses of each team member andbe willing to replace some of his under-performers with new recruits. Bothonline data-driven assessments and on-site evaluations can help him conductthis analysis.
3. Develop a hiringprocessRight now, Joe has no hiring process andemploys people based on his gut ininterviews. As a result, he has struggledwith a number of mis-hires over the
years. Mid-sized companies like Joe’srarely have a formal hiring process.Instead, when they realize they desper-ately need a new salesperson, they usea throwaway method, culling throughsome resumes, setting up a few face-to-face interviews and eventually selectingthe most adequate of the lot. But hiringis the most critical part of developing achampionship sales team! It’s time tocreate a formal process that involvesassessments, phone screens, consistentinterview questions and role-plays.
4. Compensate for resultsBecause most companies are afraid toscare away potential hires, they offer amassive base salary with a small bonusor commission opportunity. However,when you have a large salary and smallcommission, you limit the upside that asalesperson can really earn—even if hewell exceeds his sales goals. Therefore,this type of compensation plan will bemost appealing to B- and C-playerssince they’ll still earn their healthy basesalary even if they produce little. The A-player, however, wants massive upsidewhen he hurtles past his sales goal.Because Joe’s compensation plan is abase salary with a small bonus, he’s notonly attracting underperformers, butactually repelling top performers. Hemust revise his compensation structureto deemphasize base salary and pro-mote high performance.
5. Train consistentlyA suggestion here and there doesn’tcount as consistent training. In order todevelop a championship sales team, it’scritical that you invest a lot into train-ing. This means conducting regulartrainings to reinforce the most criticalselling concepts and ensure that everysalesperson is on the same page tech-nique-wise. In Joe’s organization, eachsalesperson sells in his or her own way.They’re all over the map in terms ofeffectiveness. Joe must either developor bring in an outside selling system foreveryone in the organization to follow.
6. Create accountabilityMost mid-sized organizations only tracktheir salespeople’s sales numbers. But
“It’s critical that you know your sales team inside andout. How many A-players, B-players and C-players doyou have?”
Seven Steps to Building aChampionship Sales Team
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* premium rate based on bond amount and subject to underwriting
Thousands of mortgage professionals
pay just ½ % premium*
for their state mortgage license bonds.Do you?
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what about their day-to-day prospect-ing activities? How many calls aremade, referrals asked for and meetingsset up? By holding your salespeopleaccountable for their daily prospectingactivities, you can predict what theirpipeline will be, which is the mostimportant indicator of future sales. Upuntil now, Joe has only reviewed salesnumbers at the end of each month. Thisleaves his sales team feeling frustratedand without a clear daily plan to findsuccess. By laying out what he expectshis salespeople to do each day, Joe canmore effectively manage his team.
7. Reassess strategy regularlyOnce companies find a strategy thatseems to work, they’re often fearful ofreassessing. The problem with stickingto one strategy for an extended periodof time is that markets and ideal cus-tomers are dynamic and elusive. Yourideal client today may be entirely dif-ferent in a year. Thus, it’s critical formanagement to keep its finger on themarket’s pulse by staying in constantcommunication with the sales team.Currently, Joe does the occasional ride-along with hand-picked salespeople,but this is not enough. He must regu-larly engage in open discussion with hissalespeople to learn what’s really goingon. He needs to go on sales calls fre-quently and develop lines of communi-cation with customers. Throughout thisprocess, if he and his managementteam believe the sales strategy needs tobe altered, they must test the changeswith a beta group. If the strategy provesto be optimal, they must then imple-ment it throughout the entire team.
Following these seven steps can takeorganizations from haphazardly manag-ing their people to developing a champi-onship sales team. In the case of Joe’sorganization—with the right strategy,more A-players, a results-based compen-sation structure and a better-trained salesteam that’s held more accountable—thecompany has the potential to break theinertia of old habits within his team andultimately increase sales.
This process does not happenovernight, but can lead to massivegrowth if implemented. By breaking theprocess down into seven steps, anorganization can focus on one area at atime in order to build a well-oiledchampionship sales team.
Marc Wayshak is the author of twobooks on sales and leadership, GamePlan Selling and Breaking All Barriers,
as well as a regular contributor forEntrepreneur Magazine and TheHuffington Post Business section. He
may be reached by phone at (617) 203-2171, e-mail [email protected] orvisit MarcWayshak.com.
By Sarah Valentini
Walk through any Barnes & Noble andit should come as no surprise that anaisle comprised solely of self-helpbooks exists—many of them on thesubject of leadership, leadership on thefield, leadership off the field and evenleadership within the workplace.Though some of these are immenselybeneficial and enriching, most say thesame things only in different words. Ithink that may be why I don’t oftenread them. I’m regularly asked if Ialways knew that I wanted to be aleader while growing up. Honestly, Idon’t think I did, although, if asked, mysiblings would say I was always bossy.
There is also the debate whetherpeople are born leaders or learn tobecome leaders. Surely, there are natu-ral born leaders. Take a spin to a play-ground and you will see leadership inaction. Or, just think of athletes andmusicians—the prodigies often cometo mind. Behind every prodigy is asuperstar who was not born with thesame innate abilities, but who workedhard and honed their skills to rise tothe top. The same can be said aboutleadership.
Today, the mortgage business is aschallenging as it’s ever been, as we
work in an industry with no room forerror. And now, more than ever, it’sbecome of paramount importance toattract, develop and retain great employ-ees and identify great leaders. Wouldn’tit be great if we could go into the grocerystore and pick employees off the shelfand put them in our cart? It is somethingwe often joke (or cry) about in our officeat radius financial group.
When looking from the outside in, thetopic of age always seems to be at theforefront of our industry. If you lookaround, there are vast majority of mid-dle aged white men—a stereotypescreaming for diversity and young blood.Suffice it to say, there’s no doubt themeltdown of our industry forced manypeople out the door. And let’s face it …what young bright individual wanted toget into this business after it was strewnover every national headline?
Now that the dust has settled, weare in the midst of an opportune timefor young, ambitious people to get intothe mortgage lending industry. There’stremendous opportunity for those whocan endure the blood, sweat and tearsit often takes to be a successful mort-gage banker. When I think back to myearly days in the industry, most of the
leaders were young, and it was encour-aged to identify good talent and fosterit. There are great leaders at every ageand, in my opinion, it’s the best leaderswho want to cultivate those qualities inothers. In our industry, it’s imperative tolay the groundwork for the next genera-tion of mortgage bankers.
The fact of the matter is that mostorganizations, regardless of the indus-try, struggle with attracting great talent.You have to find ways to differentiatefrom the others. Mortgage banking isnot for everyone and even people whohave the skill sets may not necessary beright for the business. To go outside ofthe box in hiring, you must be willing tohave a higher rate of turnover than youwould otherwise allow.
You don’t have to do something dras-tic to find great people. Creating a cul-ture that people want to be a part of willnaturally breed talent. In any organiza-tion, engaged employees will always beyour best ambassadors. Once you findthem, you have to keep them. So, howdo we retain great leaders?
l Give them a seat at the table: Peoplewant to make an impact and theyneed an opportunity to do so. Youput them in a leadership role for areason. Let them lead.
l Accept that they will do things dif-ferently from the way you do: Don’tlet your experience or mindset get in
the way of what they want to do.l Let them make mistakes: Unless
you’ve never made a mistake, letyour employees make them andlearn from them. Just don’t makeany mistakes with TRID!
l Finding effective leaders can oftenbe right under your nose: Take anhonest look around your office andsee what you uncover. You neverknow when you’ll find the next dia-mond in the rough.
l Kickoff formal or informal mentorprogram: Entrust your proven talentwith the responsibility of bringingup the next generation of leaders.This is a great way to develop talentand create a cohesive culture. And,more often than not, mentors maybe surprised by what they mightlearn from the mentees.
l Create contests: Not only will thesehelp you accomplish key objectives,but it will encourage teamwork andleadership. Contests should not belimited to originators. Inspire youroperations staff to get excited aboutfriendly competition.
l Peer recognition programs: Haveyour employees nominate oneanother for “going above andbeyond.” Employees will feel appre-ciated and you’ll be able to acquirefeedback about people you mightnot have otherwise known.
Anyone with years of experience inthis industry, and is still alive to tellabout it, must love what they do. If youlove the business like I love the busi-ness, we have to focus on making sureit’s still a great place for the next gener-ation to work and that homeownershipremains part of the American dream.Do your part to help pass the torch.
Sarah Valentini is a leading mortgageprofessional with 20 years of experiencein residential and commercial lending. In1999, she launched radius financialgroup inc., where she serves today as thecompany’s president and principal.Under Sarah’s leadership, radius hasgrown from a small, local lender to oneof New England’s leading, private mort-gage banks.
“Creating a culture that people want to be a part of willnaturally breed talent. In any organization, engagedemployees will always be your best ambassadors.”
Built to Lead
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NMP Daily is the mortgage industry's sourcefor news, insights, trends and tips.It keeps subscribers informed of the regulatory and legislative updates, latest industry happenings and breaking news about the mortgage technologies and services.
WWW.NATIONALMORTGAGEPROFESSIONAL.COM
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The U.S. House of Representatives recently took up aSenate-passed bill, the SCRA Foreclosure ProtectionAct, which would renew protections for foreclosure formilitary personnel transitioning back to civilian life.
The bipartisan legislation, which the Mortgage BankersAssociation (MBA) had testified in support of earlier this year,
ensures the brave men and women of our military won’t lose their homewhen they transition back to civilian life. A Call to Action was issued toMortgage Action Alliance (MAA) members regarding HR 2121, an MBA priori-ty and an important bill for the mortgage industry that would provide tran-sitional authority to originate mortgages for individuals who move from afederally-insured institution to a non-bank lender while they work to meetthe SAFE Act’s licensing and testing requirements.
House Republicans recently released their Budget Resolution, and in a vic-tory for the industry, included an MBA-supported prohibition on the use ofFannie Mae and Freddie Mac guarantee fees to pay for unrelated spending.The Budget Resolution, which serves as a fiscal blueprint for spending andtax policy, faces an uncertain future in the full House due to concerns aboutoverall spending levels.
Please stay tuned for any future MAA Calls to Action to ensure this vitalprovision is included in any budget deal.
The Mortgage Action Alliance recently sent out a letter asking MAA mem-bers about any personal relationships that they have with their elected offi-cials. These relationships can be incredibly valuable to our advocacy effortson behalf of the industry. Please consider joining MAA and helping us lever-age your personal relationships to advocate on behalf of our industry. Theindustry’s ability to navigate and manage these policy challenges will be crit-ical to our efforts to serve consumers.
Getting involved with MAA allows industry professionals to play an activerole in how laws and regulations that affect the industry and consumers arecreated and carried out by lobbying and building relationships with policy-makers. It only takes a moment to get started, and you do not have to be amember of MBA to enroll. The larger the group, the louder the voice!
If you would like to run an MAA campaign, please contact Peter Shapiro at(202) 557-2933 or e-mail [email protected] to receive an EnrollmentCampaign Kit and learn more about how you can engage your colleagues andemployees in MBA’s advocacy programs.
Real estate finance industry professionals who wish to join or learn moreabout the MAA can do so at Action.MBA.org. If you have any questionsregarding MBA’s advocacy programs, please contact MBA’s Director ofPolitical Affairs Annie Gawkowski at (202) 557-2816 [email protected].
Fowler Williams is chairman of the Mortgage Bankers Association’s MortgageAction Alliance. He is also president of Atlanta, Ga.-based Crescent Mortgage.He may be reached by phone at (800) 851-0263 or [email protected].
MBA’sMortgageActionAlliance
A Message From MAA Chairman Fowler Williams
MBA. Employees of the IRS and MBA arenot eligible to participate in the contest.
Awards may be subject to federalincome taxes. Since 2010, the federalgovernment has administered morethan 660 prize competitions. The TaxDesign Challenge is authorized underthe America COMPETES Reauthoriza-tion Act (Pub. L. 111-358).
Mortgage Network OpensBranch in NewHampshire
Mortgage Net-work Inc. hasannounced thatit has opened abranch office in
Salem, N.H. The office will be managedby Martha Harvey, previously branchmanager of Mortgage Network’sWestford, Mass. office. A veteran mort-gage professional with more than 25years of experience, Harvey joinedMortgage Network in 2007 after servingas a loan officer at Countrywide andNorth American Mortgage. JoiningHarvey at the Salem office is loan offi-cer David Barbato, who previouslyserved as a loan officer in the Westfordbranch, in addition to an operationsstaff of four people.
“Our Salem office is perfectly locatedto reach borrowers in southern NewHampshire and north of Boston whoare in need of greater home financingoptions,” said Brian Koss, MortgageNetwork executive vice president. “Wechose Martha to lead this office due toher proven leadership skills and impec-cable customer service record. We lookforward to serving the Salem communi-ty for many years to come.”
Harvey said real estate prices in Salemand north of Boston are within reach ofmany first-time buyers, but that new fed-eral regulations have made the lendingprocess more complicated.
“While the market is improving,most people have trouble figuring outwhat they need to get approved,”Harvey said. “Thankfully, MortgageNetwork has the systems and support Ineed to guide borrowers through theprocess as painlessly as possible.Whether they are buying their firsthome, moving into a bigger home, orrefinancing an existing mortgage, weare ready to help local residentsachieve their home financing goals.”
Pavaso Partners WithSigniaDocs on e-Closings
Pavaso Inc. and SigniaDocs Inc. haveannounced the integration between
their two platforms to facilitate an all-inclusive eClosing process.
“SigniaDocs has always approachedeMortgage in a holistic way, and thisintegration to Pavaso demonstrates ourgoal to support the entire transaction ofan electronic loan life cycle. OureMortgage platform and, specifically,our data-driven SMARTDoc approachfacilitates compliant, secure, data-portable loan files from the closingtable through every aspect of the sec-ondary market,” said Paul Anselmo,CEO of SigniaDocs.
Among the many benefits that usersof both systems will now gain, theSigniaDocs integration provides Pavasowith an additional layer of MISMO com-pliance for closings conducted on thePavaso Digital Close platform, as well aspass-through processing to any LOS thatSigniaDocs is integrated with today.
In addition to e-Sign capability,SigniaDocs customers can leverage theflexibility of the Pavaso Digital Closeclosing platform, which can handle dig-ital, paper or hybrid closings, andachieve a new level of collaboration forall stakeholders involved in the closing.The platform also incorporates the realestate agent and title company as partof a unified process to consumers, deliv-ering a modern, world-class closingexperience.
“Electronic mortgage documents area critical component to achieving acomplete eClosing process,” said NancyPratt, vice president of business rela-tionships and government affairs atPavaso. “SigniaDocs’ technology is high-ly complimentary to the Pavaso plat-form, and through this integration, weforesee improved ability to get thebuyer to the closing table faster, with-out sacrificing the quality of their expe-rience throughout the process.”
Genworth AnnouncesPartnership With TechProvider Roostify
Genworth Mortgage Insurance, a sub-sidiary of Genworth Financial Inc., hasannounced that it has forged an exclu-sive partnership with Roostify, a Weband mobile platform that streamlinesand accelerates the homebuyingprocess. Roostify’s platform gives con-sumers the power to submit a completeand accurate application in under 20minutes, allowing loan officers to spendmore time focused on closing loansrather than searching for informationand documents. It also serves as a net-working tool, allowing for interactionamong loan officers, real estate agents,underwriters, and consumers all in onedigital hub.
“The mortgage origination space is
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heard on the streetcontinued from page 91
of the company, focusing onincreasing efficiency and produc-tion.
l The National Association ofHispanic Real Estate Professionals(NAHREP) closed out its 2016Housing Policy & Hispanic LendingConference with the installation ofJoseph Nery as 2016 president.
l Mortgage Financial Services hashired former NAMB—The Associa-tion of Mortgage ProfessionalsGovernment Affairs CommitteeChair and Mortgage Broker MikeAnderson to help grow and man-age mortgage originations in thesoutheast United States.
l The Agency Group for WFGNational Title Insurance Companyhas appointed John Micciche, CLTPto serve as vice president andregional manager and WalterWeinschenk as underwriting coun-sel for the company’s newChesapeake Region, comprised ofagents in Maryland; Delaware andWashington, D.C. (formerly of theSoutheast Region).
l GSF Mortgage has named JimAhlin, formerly a branch managerout of the Colorado office, as newarea manager. He will be responsi-ble for expanding the GSFMortgage footprint in both theColorado and Minnesota regions.GSF Mortgage has also namedMarco LeBron as branch managerin the company’s Richmond, Va.office, joining with 15 years ofmortgage industry experience.
l Calyx Software has announced thatBob Dougherty has joined thecompany as vice president of busi-ness development, where he willbe responsible for developing thecompany’s overall partner strategy,building relationships with keymortgage industry influencers andvendors, and increasing interfaceusage and revenues.
Your turnNational Mortgage ProfessionalMagazine invites its readers to submitany information, events, passages,promotions, personal or professionaloccurrences that seem appropriateand/or other pertinent data to theattention of:
Heard on the Street/MortgageProfessionals to Watch column
Phone #: (516) 409-5555E-mail:
Note: Submissions sent via e-mail arepreferred. The deadline for submissionsis the 1st of the month prior to the tar-get issue.
l Brian Boyles has joined AcademyMortgage as North Central regionalmanager, responsible for directingAcademy’s sales, recruiting, mar-ket expansion and business devel-opment in Northern Illinois,Wiscon-sin, Minnesota, Iowa,Nebraska, Kansas, North Dakotaand South Dakota markets.
l First Guaranty Mortgage Corpora-tion (FGMC) has announced that ithas appointed Robert B. Eastep,CPA as its chief financial officer.
l ClosingCorp has announced thatKristin Henke has joined thecompany as senior director ofoperations, where she will beresponsible for coordinating thedesign, implementation andmaintenance of programs in sup-port of rate, fee and client-specif-ic data collection as well as archi-tecting the infrastructure forsome of ClosingCorp’s moststrategic title underwriter part-nerships.
l Kyle Philbrook has joined the salesteam of the Boston branch officeof Mortgage Network Inc., wherehe will be responsible for servingbuyers and homeowners through-out the Boston metropolitan area.
l AmeriSave Mortgage Corporationannounces that Barbara Johnson,CFA has accepted an offer tobecome the company’s chiefoperating officer, where she willplay an integral role in every area
Mortgage Professionals to Watch
l Paramount Residential MortgageGroup Inc. (PRMG) has announcedthe addition of Deborah Goguen aswholesale regional manager for theMid-Atlantic Region.
l New Penn Financial LLC has an-nounced the addition of mortgageindustry veteran Julie McCall as opera-tions manager for the lender’s EastCoast Third-Party Originations (TPO)channel.
l Primary Capital Mortgage (PCM) hasannounced the addition of Kyle Eddyto its leadership team in the role ofsenior vice president, consumer direct.
really just starting to benefit from tech-nology advancements and Genworth islaser-focused on staying ahead of thetechnological curve,” said KevinMcMahon, SVP of Strategy & BusinessIntelligence for Genworth MortgageInsurance. “Being the first mortgageinsurance provider to integrate with apartner like Roostify greatly enhancesGenworth’s existing offerings. We’refocused on helping our customers growtheir business and drive originationprocess efficiencies. A platform of thisscale is particularly timely and valuablegiven demand for new homes is steadi-ly increasing.”
With the new technology, loan offi-cers using the Roostify platform canalso process originations via theirmobile devices. Furthermore, the plat-form can be white-labeled and cus-tomized with each lender’s branding,style, and product offerings.
“Roostify is answering the call tosimplify the consumer home lendingexperience, as streamlined, cutting-edge mortgage origination solutionsbecome a necessity rather than a luxu-ry,” said Rajesh Bhat, co-founder andCEO of Roostify. “Our partnership withGenworth aims to address a sizeableneed for innovation and improved effi-ciencies in the housing industry.”
Save the dates!
May 10-11, 2016
Huntington Beach, CAHyatt Regency Huntington Beach Resort & Spa
Annual Meeting & Expo
November 14-16, 2016
Chicago, ILSwissotel Chicago
Western Regional Meeting
For more info, go to: www.NRMLAonline.org
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Guardsman, Reservistsand Deployments!
By Richard M. Bettencourt Jr., CRMS, CMHS
Wow! Snowstorms over the past few weeks in the New Englandarea in April? Mother Nature loves to keep us on our toes!
Last month, NAMB—The Association of MortgageProfessionals had its first annual NAMB East Conference in
Hilton Head, S.C. This was a big step for NAMB. We’ve had incredible suc-cess in Vegas over the last four years and this year we decided to gamblea little (seriously … what mortgage professional doesn’t gamble a little?)and give the East Coast a shot for a conference. Well, let me tell you it wasmore than we ever imagined. I want to personally thank United WholesaleMortgage (UWM) for being our Premier Sponsor. I would also like to thankall of the other sponsors, vendors, and of course, mortgage professionals,who took time out of their busy schedules to attend. I’ll tell you, it’s amaz-ing to see such a resurgence in the broker industry. I mean, you could justfeel the energy in the air. So, don’t miss NAMB National 2016, which willbe held in Las Vegas from Sept. 24-27 at the Luxor Hotel!
NAMB East featured some amazing speakers, invaluable breakout ses-sions, a round of golf on one of America’s top 75 golf courses, and ademonstration from the 2012 Masters of Long Drive Champion. Weenjoyed a cocktail reception on the patio under the stars with amazing livemusic and dancing! Yours truly is not a dancer and it’s best if I just stickwith what I do best and that’s helping our veterans!
That being said … I had the pleasure of hosting a breakout session withmy VA Committee Vice Chairperson, Ken Bates from Military Home Loans.We only had 45 minutes, and if you know Ken and I, you definitely knowthat 45 minutes is not enough time for one of us, never mind the both ofus, together on the same stage! Our goal was to pass along some tips andtricks that we’ve learned after years of VA loan origination. Tips and tricksthat could help a passionate mortgage professional increase and evendouble their VA book of business.
There were some great questions, but one in particular stood out, andI wanted to quickly address it in this month’s article. An attendee asked agreat question pertaining to Army National Guard and/or Reservist fromthe various branches. The question was, “Are Guardsmen/Reservists eligi-ble for the VA Home Loan Benefit even if they haven’t served the mini-mum six years required by the VA?” The answer could quite possibly be“Yes!” How?
We all have a co-worker, colleague, friend or family member that eitherserved or is serving in the Guard/Reserves. I would also venture to say thatthe majority of Americans are aware that the U.S. has been activelyengaged in military actions for the last 15 years. You’ll hear terminologiessuch as “Operation Iraqi Freedom,” “Operation Enduring Freedom,”“Operation New Dawn,” and several other classifications of militaryactions. What I think many of us do not realize is the number and fre-quency of Guard/Reserve units that have been activated to “Active Duty”status in support of those operations.
Now, there are two types of “activations” for Guard/Reserve units. Weare going to focus on Title 10 activations. When a Guard Unit, say the379th Engineering Battalion out of Massachusetts, was called up in sup-port of Operation Enduring Freedom and subsequently deployed toAfghanistan, that unit was put on “Active Duty” status, and as such,opened up the possibility of those soldiers being granted access to their VAhome loan benefit before their six years of service has been completed.
OperationVA SITREP
“Your VA S i tuat ion Report”
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The median credit score on new firstmortgages in the fourth quarter of 2015was 750 and 90 percent of first mort-gage borrowers had a score in excess of646—these values are essentiallyunchanged for the past three years.”
MBA’s Lopez: CEOs Needto Be Involved in TechPlanning
Mortgage Bankers Association (MBA)Chairman-Elect Rodrigo Lopez haswarned industry professionals that acommitment to technology must berooted in the C-suite.
Speaking yesterday at the tradegroup’s Annual Technology Conference,Lopez defined technology as “the infra-structure upon which we should investto keep the industry moving forward,but also moving together.” Yet heexpressed concern that keeping the cor-porate hierarchy separate from high-tech decision making would be a busi-ness error.
“A culture of technology must startwith the CEO if it is to truly be incorpo-rated throughout the company,” saidLopez, who is also executive chairmanof Omaha-based Northmarq CapitalFinance. “CEOs should be intentionaland deliberate in their strategic think-ing by integrating technology withoperations, risk management and cus-tomer service.”
Lopez also praised mortgage profes-sional for being ahead of the curve intheir embrace of mobile technology.
“With consumers using hand-helddevices for everyday life activities, themortgage industry has been makingincredible strides toward fully electron-ic mortgage transactions,” he contin-ued. “We now have online mortgages,e-closing capabilities, digital prequalifi-cation and personalized video disclo-sures. Each of these complies with reg-ulatory standards. Technology has alsoimproved settlement and title services.”
However, he noted that many mort-gage professionals were still a little toocautious in using social media as a cus-tomer service tool.
“This is understandable—in someways, social media is still the greatunknown,” he said. “But if the industrydoes not learn and take advantage ofsocial media’s usefulness, we couldmiss out on a great number of new cus-tomers.”
But Lopez observed there was aneven greater concern to the industryregarding cybersecurity, which he stat-ed was particularly vulnerable at thesmaller companies.
“The mid-size to small lenders themost vulnerable as they work to updatetheir systems,” Lopez said. “Many donot have the expertise or breadth ofresources to protect their data properly.Should security systems fail, this couldlead to reputational and branding risksthat many smaller lenders simply can-not afford. It could even put them outof business. That is why lenders oftenlook to vendor partners for solving theircybersecurity needs.”
California AG Hits MorganStanley With Lawsuit
California Attorney General KamalaD. Harris has filed a lawsuit againstMorgan Stanley, charging the finan-cial institution with violating theFalse Claims Act, the CaliforniaSecurities Law and other state lawsby misrepresenting the quality of itsresidential mortgage-backed securi-ties (RMBS) and through its involve-ment in the failed Cheyne structuredinvestment vehicle. The lawsuit cov-ers the company’s actions between2004 and 2007.
In filing the lawsuit, Harris chargedthat Morgan Stanley’s actions wreakedfinancial havoc on California public ser-vants, citing losses of hundreds of mil-lions of dollars through investments inMorgan Stanley by the California PublicEmployees Retirement System and theCalifornia State Teachers RetirementSystem.
“Morgan Stanley’s conduct in thiscase evidenced a culture of greed anddeception that helped create a devas-tating economic crisis and crippledCalifornia’s budget,” said Harris. “Thislawsuit is necessary in order to holdMorgan Stanley accountable for thedestruction it caused to California,our people, and our pension funds.”
Your turnNational Mortgage ProfessionalMagazine invites you to submit anyinformation on regulatory changes, leg-islative updates, human interest storiesor any other newsworthy items pertain-ing to the mortgage industry to the atten-tion of:
NMP News Flash columnPhone #: (516) 409-5555
E-mail:[email protected]
Note: Submissions sent via e-mail arepreferred. The deadline for submissions isthe 1st of the month prior to the targetissue.
nmp news flashcontinued from page 66
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By Andy W. Harris, CRMS
Just in case you didn’t know, I’ll remind you to make sureyou do. This column is for YOU, the mortgage loan origi-nator (MLO). The content is created by us, for us. Now is
the time to share your stories, thoughts, experiences and any-thing else you can muster up in this crazy and exciting business when origi-nating mortgage loans in the primary mortgage market.
Please join the new Facebook group by searching for “OrigiNation.” This isa public and open group and information shared will possibly be featured inthis column of National Mortgage Professional Magazine (with your consentof course). People want to hear from you … the good stories and the bad, thefunny and the serious … let’s connect and share. Search today on Facebookand join us!
Are you an originator? Send your stories! To have topics considered infuture editions, please e-mail me with “OrigiNation” in the Subject Line [email protected]. These can be confidential or yourname and company can be referenced if you wish. You can also join theFacebook Group by searching for “OrigiNation.”
Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-basedVantage Mortgage Group Inc. and past president of the Oregon Association ofMortgage Professionals. He may be reached by phone at (877) 496-0431, [email protected] or visit VantageMortgageGroup.com.
Mortgage Technology
Join Our Facebook Group! Few people find great pleasure in paying propertytaxes, and more than several politicians havesought elected office with grand promises of alle-viating homeowners of this particular financialresponsibility. But for Joan Youngman, author
of the new book A Good Tax: Legal and Policy Issues forthe Property Tax in the United States, the animosity aimed
at property taxes has more to do with its ubiquity than any toll it takes ona homeowner’s budget.
“First and foremost, this is a very visible tax,” explained Youngman,who is an attorney and serves as a senior fellow and chairwoman of theDepartment of Valuation and Taxation at the Lincoln Institute inCambridge, Mass. “You sit down once or twice a year and write out avery big check. It gets your attention and starts you to think about it.Whereas, a sales tax is different—no one know how much they pay intheir sales taxes. A tax that always gets your attention is always a focusof attacks.”
Youngman traces the political targeting of property taxes to the con-troversial Proposition 13 movement in California in 1978.
“It was a very California story,” Youngman noted, recalling how tumultresulting from an unpopular reform of the state’s property valuation sys-tem spiraled into a populist pushback spearheaded by anti-tax activistHoward Jarvis, resulting in a voter-approved referendum that created anew limit on property tax collections.
Since the passage of Proposition 13, a number of politicians soughtvotes with talk about lowering or even eliminating property taxes, butYoungman observed that did not mean they were willing to cut out taxescompletely.
“A lot of public officials would be happier with invisible taxes,” shesaid.
But the 2008 recession and the lethargic recovery that followedhelped to change political opinion on property taxes.
“Sales taxes declined by double digits,” Youngman continued.“Property taxes were a fiscal lifeline for local governments.”
In her book, Youngman detailed that property taxes generate roughly$472 billion annually, with much of the money used to finance publicservices. She added that the intelligent use of property tax money playsa key role in determining home values.
“That is one of the great benefits of the property tax’s visibility,” shesaid. “People know if the tax revenue is spent wisely on good publicservices, it has an effect on property values. After all, an excellent schoolsystem benefits everyone, even those who do not have children inschool—it helps make a community to be a more attractive place to live.Conversely, high property taxes that are not spent well can sound analarm bell.”
Youngman also observed that property taxes play an important role inpreventing would-be homeowners from borrowing beyond their means.
“People who make a major life purchase like a house are aware of allcosts,” Youngman said. “If there is a change in taxes, that could make adifferent in choosing that house or in choosing to move somewhere else.”
New BookChampionsthe Benefits of PropertyTaxesBY PHIL HALL
Phil Hall is managing editor of National MortgageProfessional Magazine. He may be reached by e-mail [email protected].
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owner must show they have beenmaking payments on time for thelast 12 months.
The Home Affordable Refinance Program(HARP) will expire Dec. 31, 2016.
3. FHA Short Refinance Allows refinance of a non-FHA-insuredmortgage in which the borrower is in anegative equity position.l The new loan’s maximum LTV ratio
is 97.75 percent of the currentproperty value.
l There is no maximum CLTV ratio forsecond liens held by government enti-ties or instrumentalities of government.
l The borrower must be current onthe existing mortgage, or have suc-cessfully completed a qualifyingthree-month trial payment plan.
The FHA Short Refinance programexpires Dec. 31, 2016.
4. FHA Streamline Refinancel Proceeds are used to extinguish an
existing FHA-insured first mortgagelien.
l There is no maximum CLTV withsubordinate financing.
l New subordinate financing is permit-ted only where the proceeds of thesubordinate financing are used to:
l Reduce the principal amount of the
existing FHA-insured mortgage orfinance the origination fees, otherclosing costs or discount pointsassociated with the refinance.
l No more than a one-time, 30-daylate on the mortgage in last 12months.
5. VA Interest Rate ReductionRefinance Loan (IRRRL)l The VA is not concerned about the
second mortgage being refinanced,other than it must be assumable(VA Loan Center: FL/[email protected]. 4/4/16: per Nancy,727-319-7500).
l The IRRRL must replace the exist-ing VA loan as the first lien on thesame property. Any second lien-holder would have to agree to asubordinate to the first lien holder.
l The prior loan is current (not 30days or more past due) at the timeof loan closing.
Pam Marron (NMLS#: 246438) is seniorloan originator with InnovativeMortgage Services Inc. (NMLS#: 250769)in Tampa Bay, Fla. She may be reachedby phone at (727) 375-8986, [email protected] or visitHousingCrisisStories.com, CloseWith-Pam.com or 8Problems.com.
the long and shortcontinued from page 66
va sitrepcontinued from page 93
You may now be asking yourself,“How is that possible Mr. VA Guy?”
Well, under U.S. Code Title 10, ifan Army, Navy, Air Force, Marine, orCoast Guard Reservist/Guardsmenserves a minimum of 90 days in sup-port of an active Operation, then heor she will have the ability to requesta Certificate of Eligibility (COE) fromthe VA. That veteran will receive aDD214 from that term of service(oftentimes that deployment orActive Duty term is between six to 10months) and on their DD214 in theComments Section, it will indicate:“In support of Operation XXX, U.S.Code Title 10 …” That might not beexactly how it’s written, but it’s pret-ty close! If that veteran meets the dis-charge requirements (Honorable,General Under Honorable Conditions,Other Than Honorable) and served 90days, you’re good to go to order aCOE!
I meet at least a dozen Reservistsand Guardsmen each year who wereunaware they could apply for a VACOE. They were still under theimpression they needed six yearseven though they had a deployment.Think about it! How many veterans
own their own homes with financingother than the VA loan, simplybecause they never knew they hadaccess to this amazing benefit? Howmany veterans are waiting in a lowrate market like we have now to buytheir next or first home? Imaginewhat an educated and passionate VAloan specialist could do for those vet-erans! Remember, veterans don’tknow what they don’t know, and it’syour job to offer expert educationalservices to help them access theirbenefit!
That’s about all the time andspace I have for this article, and notto mention, I’ll probably be outsideshoveling in a little while! Have agreat month, and remember, if youhaven’t already, please take aminute today to thank a veteran.They’ve done more for us than wecould ever repay!
Richard M. Bettencourt Jr., CRMS,CMHS of Danvers, Mass.-basedMortgage Network is secretary ofNAMB—The Association of MortgageProfessionals. He may be reached byphone at (978) 304-0818 or [email protected].
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GettingBack toWork
(Now ThatTRID Is Over)
BY CARL MARKMAN
credit: cherezoff
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TRID happens … err,happened. Did you go out ofbusiness? I don’t have thestats in front of me, but I’dguess the majority of us pulled
through. By the time you’re reading this,
we’ve wrapped up Q1. TRID is in ourrearview mirror and all lenders arelooking to improve on what many saidwould be a huge dent on our bottomline. Surprisingly though, even with thedelays, many lenders did pretty well inQ1.
But with all the headaches TRIDcaused, and the even worse ones itwas supposed to cause, did you do agood enough job in preparing for thefuture?
As an industry, and I mean thehousing industry, not the lendingindustry, which is an importantdifferentiator, TRID was a tough one.We had to work harder than usual tomake sure we were ready. RememberY2K? TRID wasn’t nearly as bad as thatfrom a technology standpoint, but itdefinitely presented its share of hurdles.That said, the world didn’t end.
You can adapt or you can complainHaving travelled around the countrymore than I’d have liked during Q1, Ican tell you that those who are doingbetter right now are the ones that arethe most educated about the recentchanges and continue to adapt tothem. For example, the new ClosingDisclosure (CD) caused a headache formany. Issuing the CD is unavoidable,but to help dodge at least some of thedelays, some lenders are issuing theCD earlier. And it’s not just aboutissuing the disclosures, it’s following upto make sure the borrower not justreceives them, but understands themand has questions answered wellbefore they’re due.
When TRID first started, everyonethought we were prepared, but overall,we weren’t.
Many real estate agents didn’t fullyunderstand what TRID meant for them.Nor did a lot of the loan originators.Frustration was rampant and there’sstill a lot of that out there today.
By the same token, TRID is a foreverthing. It’s here to stay, in some form atleast, and we’re going to continue tohave to adapt the entire industry to thisnew world.
The experts aren’t expertsConsider this … as of December 2015,some of the bigger players were upsignificantly from where they were inDecember 2014. Purchases inDecember 2015 rose more than theyhave since December 2006. Closingsrose by double digit percentages. Q1started out rough, but then it took offwith a mini-refi boom. Unanticipatedlow rates led to brisk business for thosenimble enough to react.
If you listened to the experts, TRIDgoing to ruin us all. Rates were going toskyrocket and we’d all be struggling.
I’m not saying TRID wasn’t aheadache. TRID’s effects will be feltthroughout the year. But those thatwere prepared for life beyond TRID notonly survived, but they thrived. That’shistory though. What’s really importantis that you’re staying focused on thenext big issue. Which is …
Honestly, I have no idea. If you do,please call me. Even the experts aren’texperts.
You should never be boredMy honest opinion, based on almost 25years of experience in lending, is thebiggest issue we face as an industry isa lack of preparation.
I’ve written this before in the pagesof National Mortgage ProfessionalMagazine, but some people still don’tget it, so I’ll repeat myself. If you workin this industry, you should never bebored.
Chance favors the prepared. Tosucceed in the greater housing world,you need to prepare for theunexpected challenges that will almostdefinitely occur. You cannot prepare foreverything, but you can prepare for alot.
You need to have the foresight tolook for ways to fill voids that will occurwhen faced with change. Rates aregoing to eventually go up. Are youanticipating the inevitable change?
While you can’t plan for everything,you can plan for many things. Look atyour own home as an example. Do youhave something in your medicinecabinet for when you get a headache?Or do you wait for the pounding tostart. Do you plug your cell phone inevery night, or do you wait until it diesduring a call?
Hopefully you don’t get headachesevery day, but regardless, chances areyou have something at home to takecare of the situation. You’re preparedbecause you know eventually, you orsomeone in your house will have aheadache.
No one knows for sure what is goingto happen next, but don’t let that stopyou from planning your next move.
Disney was wrongIn the housing industry, it is not a smallworld and we all need to look beyondthe real estate agent channel forreferrals.
With all of the potential referralsources out there, I’ll say it again, youshould never be bored. When thingsare good, you should continue tonetwork with all of your free time soyou’re ready for when things take aturn in an unexpected direction.
In addition to real estate agents, weneed to connect with the industryacross the board. Builders are anobvious source, but go beyond that.Purchase business won’t always be
good. Attorneys, estate planners andfinancial advisors should be on yourradar. Don’t sell to them, instead,explain to them how you can help themand their clients. Referrals can comefrom anywhere, but they’re more likelyto come from people who are alreadydealing with qualified homebuyers.
The housing industry is a teamsport, but without an official coachcalling plays. If you want someone topass you the ball, they better like youand feel that you’re capable of helpingthem win.
As a team player, it’s the lender’sobligation to communicate changeswith everyone else about what’scoming up and the pitfalls that we canhelp borrowers avoid. There are somany opportunities and nuances outthere in lending that the more everyoneknows, the easier everyone’s job willbe.
Keep in mind that networking, goodnetworking, is much more than “callingto see what’s up” and asking forreferrals. What’s in it for the peopleyou’re calling? Tell them how you canhelp them, whether it’s directly orindirectly. It’s just not all about you.
Change happensAs rates rise, because eventually theywill, you need to be ready. You can’tkeep living like it’s 2011 or 2001 orwhenever it is you were having a greatyear. You need to market both for thetimes we live in and the times to come.
So what’s to come?Politically, this is a very interesting timeand it’s something we all should learnfrom. It doesn’t matter if you’re forTrump, Bernie, Hillary or someone else,each has something to offer that wecan absorb. Each and every one ofthem is in sales and they adapt theirmessage to the audience they’respeaking to.
Being in the lending business, we’reall in sales, regardless of if you’reselling to borrowers, brokers or behindthe scenes. People work with thosewho have the message they like thebest. And if your message isn’t there,it’s because of a lack of preparation.
Personally, I’m still amazed at thegrowth of renovation loans. I’m gettingquestions on them every single dayand renovation training Webinars seemto be a hot commodity. I guess Ishouldn’t be surprised though. Timedoesn’t stand still and homes will age,that’s guaranteed.
What is not guaranteed is existingowners taking care of their homes. Youknow exactly what I’m talking about …pink bathrooms from 20 years ago,
Carl Markman is director of national sales for REMN Wholesale.A student of the housing industry for 20-plus years, he believesthat someone’s net worth can be maintained and grown byfocusing on a quality network. Carl can be reached by e-mail [email protected].
windows that barely insulate, carpetsthat were installed before the iPodcame out.
These homes often are in absolutelyperfect locations for many buyers,except they’re far from perfect in termsof design and features. This is whereeducating everyone in the industrycomes into play. You can score thewinning goal through renovationlending, but your teammates need toknow that they should pass you theball. They need to know whatrenovation lending is and thepossibilities it presents.
Renovation lending may not be theanswer for your business though. If it’snot, you need to figure out what will bewhen things change in the future.
Everyone has different needs andsituations. You have to have as manytools at your disposal as possible.What’s the demographic breakdown inyour region? What directions are thetrends leaning and what are the issuesaffecting the builders and buyers in yourarea? And how can you help solvethem?
Again, this is where networkingcomes into play. If you’ve been meetingwith financial planners and attorneys, orspeaking at community events, insteadof just targeting real estate agents, youcould be on the radar as a problem-solver for whatever comes next. Buildyour network and show them how youcan help solve whatever issues theyhave now, as well as those looming onthe horizon.
The power of attitude andpredicting the futureThere is so much you can control aboutthe industry and it starts with the powerof attitude. Trust, me, people are seeingsuccess across the country and it’s notbecause of the sign on their door. It’sbecause of their attitude and theirwillingness to adjust when changecomes around.
Many of you have been in thisindustry for more than a decade andthose that haven’t, I’m sure have heardabout the ‘good old days’ when thingswere easier. If this job was truly evereasy for too long, trust me, everyonewould do it. And then easy wouldn’texist any longer.
No one has a crystal ball for thefuture of the housing industry. The onlyguarantee is that things will eventuallychange and the most successful of uswill be ready for it.
Look forward, try to see aroundcorners and be ready for when thechange comes. I’ll be right there withyou!
places to workoutstanding
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Assurance Financial255-239-7948
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REMN Wholesale732-738-7100
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Although REMN Wholesale is part of a large corporation, it feels likea “Mom and Pop”-style company. We encourage our team members
to grow and we train and promote each individual to their fullpotential. As a national company, REMN provides many opportunities
for employment from coast to coast.
PRMG1-866-PRMG-YES (806-776-4937)
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Built by originators for originators, PRMG was born from a vision of creating a company with a unique culture
focused on the successes of the producer. We understand what ittakes to be a successful originator and cultivate
new business every day.
United Wholesale Mortgage800-981-8898
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Voted the #1 place to work in Metro Detroit, UWM is looking for A players to join our talented team. Our business is driven by our
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calendar of eventsN A T I O N A L M O R T G A G E P R O F E S S I O N A L
To submit your entry for inclusion in the National Mortgage ProfessionalCalendar of Events, please e-mail the details of your event, along with
contact information, to [email protected].
* Looking for additional exposure at key industry events?Call 516.409.5555, ext. 4 to discover how to maximize your event coverage.
APRIL 2016Monday-Tuesday, April 18-19
National Association of ProfessionalMortgage Women 2016 Annual
ConventionThe Luxor Resort & Hotel
3900 South Las Vegas BoulevardLas Vegas
For more information, call (860) 922-3441or visit NAPMWAnnual.com.
Tuesday, April 192016 Florida Association of
Mortgage Professionals SuncoastChapter Trade Show
The Holiday Inn6231 Lake Osprey DriveLakewood Ranch Fla.
For more information, [email protected] or call
(941) 223-9416.
Monday-Wednesday, April 25-27American Mortgage Conference 2016
Marriott City Center500 Fayetteville Street
Raleigh, N.C.For more information, call (919) 781-7979
or visit NCBankers.org.
MAY 2016Tuesday-Wednesday, May 10-11National Reverse Mortgage LendersAssociation 2016 Western Regional
MeetingThe Hyatt Regency Huntington Beach
Resort & Spa21500 Pacific Coast Highway
Huntington Beach, Calif.For more information, call (202) 939-1784
or visit NRMLAOnline.org.
Monday-Wednesday, May 16-18American Land Title Association Federal
Conference & Lobby DayRenaissance Downtown
999 9th Street NWWashington, D.C.
For more information, call (202) 296-3671or visit ALTA.org.
JUNE 2016Sunday-Wednesday, June 5-8National Notary Association 38th
Annual ConferenceThe Hyatt Regency Orange County
11999 Harbor BoulevardGarden Grove, Calif.
For more information, call (844) 466-2266 or visit
NationalNotary.org/Conference.
Tuesday, June 21Great Northwest Mortgage Expo 2016Embassy Suites Washington Square9000 SW Washington Square Road
Tigard, Ore.For more information,
call (860) 922-3441 or visitGreatNorthwestExpo.com.
JULY 2016Monday-Tuesday, July 11-12
Ultimate Mortgage Expo 2016Hotel Monteleone214 Royal Street
New OrleansFor more information,
call (860) 922-3441 or visitUltimateMortgageExpo.com.
Monday-Wednesday, July 25-27Appraisal Institute 2016 Annual
ConferenceThe Sheraton Charlotte
555 South McDowell StreetCharlotte, N.C.
For more information, call (888) 756-4624 or visit
AppraisalInstitute.org/Annual-Conference.
AUGUST 2016Sunday-Wednesday, August 7-10
Summer CAMP 2016: Destination NapaThe Westin Verasa: Napa
1314 McKinstry StreetNapa, Calif.
For more information, call (916) 448-8236, or visit
TheCAMPsite.org.
Wednesday-Saturday, August 17-20
Florida Association of MortgageProfessionals 2016 Annual Convention
Omni Orlando Resort atChampionsGate
1500 Masters BoulevardChampionsGate, Fla.
For more information, call (850) 942-6411 or visit
MyFAMP.org.
Thursday-Friday, August 18-19Louisiana Mortgage Lenders Association
2016 Annual Education ConferenceNew Orleans Riverside Hilton
2 Poydras StreetNew Orleans, La.
For information, call (225) 590-5722 or visit LMLA.com.
SEPTEMBER 2016Wednesday September 14Texas Mortgage Roundup 2016
DoubleTree by Hilton Dallas Near theGalleria
4099 Valley View LaneDallas, Texas
For more information, call (860) 922-3441 visit
TXMortgageRoundup.com.
Friday, September 16OriginatorConnect 2016
Mohegan Sun1 Mohegan Sun Boulevard
Uncasville, Conn.For more information,
call (860) 922-3441 or visitOriginatorConnect.com.
Saturday-Monday, September 24-26
NAMB National 2016The Luxor Resort & Hotel
3900 South Las Vegas BoulevardLas Vegas
For more information, call (860) 719-1991 or visit
NAMBNational.com.
OCTOBER 2016Tuesday-Friday, October 4-7
American Land Title Association 110thAnnual Convention
Fairmont Scottsdale Princess7575 East Princess Drive
Scottsdale, Ariz.For more information, call (202) 296-3671
or visit ALTA.org.
Sunday-Wednesday, October 23-26
Mortgage Bankers Association 2016Annual Convention
Hynes Convention Center900 Boylston Street
Boston, Mass.For more information, call
(800) 793-6222 or visit MBA.org.
Monday-Thursday, October 24-278th Annual Conference of Mortgage
Brokers and ProfessionalsHarrah’s Convention Center
777 Harrah’s BoulevardAtlantic City, N.J.
For more information, call (732) 596-1619 or visit MBANJ.com.
NOVEMBER 2016Monday-Wednesday,
November 14-16National Reverse Mortgage LendersAssociation 2016 Annual Meeting
& ExpoThe Swissotel Chicago
323 East Upper Wacker DriveChicago
For more information, call (202) 939-1784or visit NRMLAOnline.org.
Wednesday-Thursday, November 16-17
Mortgage Star Conference 2016Canyons Resort
4000 Canyons Resort DrivePark City, Utah
For more information, call (860) 922-3441or visit Mortgage-Star.net.
Friday, November 18Utah Association of Mortgage
Professionals Expo 2016Canyons Resort
4000 Canyons Resort DrivePark City, Utah
For more information, call (860) 922-3441or visit UAMPExpo.com.
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Playingby theRules
Playingby theRules
BY AMY BERGSETH
credit: shironsov
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Igrew up in Minnesota, so asyou might expect, I wasraised with a solidMidwestern work ethic, anappreciation for cold weath-er, and a deep love for thegame of hockey. I don’t
generally go in for stereotypes, butI had to start this article somehowand we do pretty much all lovehockey in Minnesota. Some of myearliest memories are of watchingthe game. I went to all of my broth-er’s games and wanted so badly tobe out on the ice with him.Unfortunately, when I was a littlegirl, there were no girls’ hockeyteams. Looking back, I guess that’swhere I started earning my reputa-tion as a rule-breaker.
Now that I oversee operationsfor a mortgage industry technologyfirm, much of my work is focusedon creating software that ensuresthat no rules are broken, ever. I’lltalk about how we apply what Ilearned from hockey in our busi-ness in a bit. But as I was prepar-ing for this column, I looked backat some of my old high schoolyearbooks and was surprised tosee how angry I was at the timethat we girls were excluded fromsomething as fundamental to life inthe upper Midwest as hockey. Oneof my friends had signed my bookwith the words, “I hope you get toplay hockey someday.”
This is not to say I didn’t play. Iowned a hockey stick and inMinnesota there’s always wateraround so we often had a creek ora pond nearby. And, in truth, therewere some girls who played on theboy’s team, but competition wasrough. I couldn’t ask my parents toinvest in all of the equipment if Iknew the chances of me goinghead to head with larger male play-ers and doing well was slim.
Later in life, when I went toschool and entered the workforce, Ifound—like most professionalwomen—that I could compete withanyone. That’s probably why Iappreciate the thought of separat-ing out female executives forrecognition, but I rarely participate.I can compete with the men quitewell, thank you.
It would take me many years formy favorite sport to catch up withme. When it did, I was pleasantlysurprised that, years after I left highschool, I would have the opportuni-ty to compete in a recreationalwomen’s hockey league. Ofcourse, I was a grown woman bythis time with no experience play-ing on an actual hockey team.Most of the people who knew methought I was nuts. As I got intotraining with my new team, I won-dered if they were right.
Growing up, I owned figure
skates, which are quite differentfrom hockey skates. The biggestdifference is that stopping doesn’tseem quite as important in figureskating. About the 10th time I flewcrashing into the boards, my newcoach pulled me aside for someremedial training.
Today, I have 16 years of expe-rience playing recreational hockey.It has changed who I am as a per-son, how I deal with conflict (no,this doesn’t mean I body checkpeople in meetings), how I developteams in the workplace, and how Ilead software development teams.In this recurring column, I want totell you about some of the lessonsI learned from playing the sport Ilove.
The first one is you have to bewilling to break the rules if you’regoing to get what you want. WhenI was young, I was told I couldn’tplay and while I complained aboutit and was angry, I accepted thatas the reality I would have to livewith. Being a realist is not a badthing, but when it comes to yourdreams, you have to be willing toturn your back on the present reali-ty to find something better.Someone did exactly that andtoday we have girls’ hockey andrecreational leagues for women.And, as of this past fall, a profes-sional women’s hockey league, theNational Women’s Hockey League(NWHL)! Women’s hockey is anOlympic sport, too, as of 1998.Things have indeed changed dra-matically, I’m happy to say.
Business is no different. If youfollow the “rules” laid down byyour competitors, you maybecome a fast follower, but you’llnever be a leader. Every greatleader who has achieved out-standing success has beenaccused of being a rule-breaker, amaverick or a trailblazer. Thesepeople go where others haven’t,maybe even where others weretold they couldn’t go.
In every business, there arerules that can be broken and thosethat cannot. Success comes downto knowing which is which andhaving the courage to act on thatknowledge. In our business, wewrite the software that helps com-panies get their work done in themost efficient, profitable mannerpossible, with the caveat thateverything they do must complywith every letter handed down bytheir regulators. Trust me, theConsumer Financial ProtectionBureau (CFPB) has a lot morerules than any hockey game.Automation can be the guardrailsthat keep you on track, the boardsand glass that keep you on therink. Good software allows theexecutive to focus on the workand not on the rules.
We’re judged in this business byhow well we follow the rules, butnot every game is played that way.The women’s league I play on hasrules against excessive contact,but the first player who doesn’t hitthe ice ready to be aggressive willbe pulled aside by the coach andasked what’s wrong. Actually, yourteammates will pull you aside firstif you give up a chance to adjust acompetitor’s attitude with abounce off the boards. Ah, it’s agreat game! But I digress.
In the mortgage game, our newfocus on the consumer has turnedour industry into a kinder, gentlerfinancial services business. That’sgreat, but we can’t let it turn usinto passive competitors—not ifwe want to succeed. We mustempower our people to go into themarket and work for every deal,maximize services provided totheir clients in a compliant manner,and meet statutory timelines withease through the use of industry-specific software. Anything lessturns our industry into another pro-duction line, stamping documentswhile we watch the clock. That’snot a game I ever want to play.
Amy Bergseth is vice president of Operations for Glencoe, Ill.-based Exceleras, formerly Default Servicing Technologies.She can be reached by e-mail [email protected].
“If you follow the ‘rules’ laid down
by your competitors, you may
become a fast follower, but you’ll
never be a leader.”
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WHOLESALE LENDERS
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© Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 3060 Peachtree Road NW, Suite 500B, Atlanta, GA 30305. Loans in Texas offered through Angel Oak Home Loans LLC, NMLS #685842.This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-to-business communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Employer and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, veteran status or other classification protected by law. 3-2-16 ANR/MBC
→ Visit www.angeloakms.com or call 855-539-4910 to learn more about Angel Oak Mortgage Solutions’ innovative products.
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